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HomeMy WebLinkAbout1974-08-22 HRA Regular Meeting AC�I IMI A Housing and Redevelopment Authority of Edina, Minnesota Thursday, August 22, 1974- at 7:30 P.11. Edina City Hall 1. Approval of the Minutes of the Previous Meeting Held August 5, 19711. 2. Recommendations and Reports. A. Progress Report on 50th and France Project. 3. Adjournment. MINUTES OF THE REGULAR MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA HELD TUESDAY, AUGUST 6, 1974 EDINA CITY HALL 1. Roll Call: Charles W. Freeburg, Chairman William F. Greer Lawrence W. Rixe Staff Present: Greg Luce, Executive Director David Schnobrich, Intern Lynnae Nye, Secretary 2. Approval of the Minutes of the Previous Meeting, Held July 16, 1974. A motion .to apprave- the-minutes of the-July 16, 1974, Housing and Redevelopment Authority meeting was made by Mr. Rixe and seconded by Mr. Greer. Upon roll call the following voted: Ayes: Mr. Greer, Mr. Freeburg, Mr. Rixe. Nays: None. Motion carried. 3. Recommendations and Reports. A. Feasibility Study. Mr. Luce presented the completed feasibility study, portions of which were modified pursuant to comments made at the last H.R.A. meeting to more adequately reflect the market in terms of interest rates and the value of the structures. He noted the cost of acquiring a lease or leasehold improvement has not been incor- porated. Mr. Luce indicated the feasibility study shows that, unless outside sources of income can be found, this project could not be funded by tax increment financing in less than 20 years. Therefore, it appears the businessmen must absorb a significant fraction of the costs for parking or a reassessment of the existing ramp. Mr. Luce stated that the property owners and renters contacted have indicated that an additional assessment or reassessment would be very difficult at the present time; it may be that the problems and possible solutions will change over a period of time and redevelopment will have to wait until the area depreciates to a lower point or until the demand for land is so high it warrants redevelopment and, in connection with that redevelopment, there is a demand for public parking. Mr. Luce recommended the H.R.A. request the City Council to instruct the staff to prepare a land use plan for the 50th and France area so that when redevelopment does occur it would have to occur within established parameters. Lengthy discussion followed. Mr. Rixe questioned whether the relief of the existing $750,000 special assessment nor the parking ramp should be further reflected in the calculations. Mr. Luce stated the special assessment tax already levied would not be refunded, but the liability for the existing ramp would be acquired and absorbed as part of the redevelopment project. He further stated that the acquisition of the existing ramp represents about 20% of the existing cost, and a possible solution would he to spread 200 of the project cost as a special assessment over the entire area. Mr. Rixe clarified the projections made seem to neglect to take into account an existing taxation (special assessment) that is supposed to pay for the existing parking ramp. Mr. Luce pointed out it would be unfair to build a north side ramp as part of the redevelopment project, pay for it by tax increment finance, and continue to assess the cost of the south side ramp using the existing formula. 8-6-74 H.R.A. Meeting Minutes Page 2 Mr. Freeburg questioned the 7% interest rate figure used, and suggested the actual interest rate will be closer to 6% by the first of next year. In reply to Mr. Bright Dornblazer, 4630 Drexel Avenue, Mr. Luce indicated one alternative would be to establish the district and freeze the taxes so a redevelopment project, excluding parking but including circulation, aesthetics, lighting, under- ground utilities, etc. , could be undertaken; the plan could be amended later to include parking. Another alternative might be redevelopment on a piecemeal basis, _ one site at a time- Mr. Hosmer Brown, an attorney in the 50th and France area, urged the H.R.A. "to adopt some sort- of-plan you can all.live with,, that can be amortized in a proper length of time. I think you would be amazed with the ingenuity of the private sector if they could see some beginning of sympathy and an attempt to help solve the problems, and, by adoption of a plan, you might help us a great deal in our dealings with Minneapolis." Mr. Freeburg felt a partial plan, if undertaken under an overall guideline, has merit. Mr. Rixe agreed, adding final action on the staff's recommendations should be deferred to see if there are alternatives that should be considered. Mr. Greer, agreed the project should not be abandoned on the basis of the feasibility report, all alternatives should be thoroughly explored, and the August 7th meeting with the businessmen and staff is crucial. He added he is not convinced a piecemeal project should be undertaken because the area cannot be made more attractive to more people without more parking. Mr. Luce stated he will present the feasibility report and recommendation to the businessmen at the August 7th meeting and will present the fact that it appears that in order to do the project, 20% of the project cost would have to be assessed. After that, he will review the feasibility study and determine if a plan could be prepared and accepted this year. All generally agreed a special H.R.A. meeting should be held during the week of August 19th, the specific date to be set by the Executive Director; Mr. Luce will report on the outcome of the August 7th meeting with the businessmen, and the progress to date. B. Selection of Consultants. Mr. Luce stated he wrote to the five consulting firms contacted earlier and informed them the H.R.A. is evaluating the feasibility study and will not attempt to identify a consultant until the scope of the project is comfortably defined. All agreed to table discussion of the selection of a consultant until a future meeting. 3. Adjournment. No further discussion being heard, Air. Freeourg moved the meeting be adjourned to the special meeting to be called by the Executive Director the week of August 12th. Mr. Rixe seconded the motion, and upon roll call the following voted: Ayes: Mr. Freeburg, Mr. Greer, Mr. Rixe Nays: None. Motion carried. Meeting adjourned. Respectfully submitted, Greg Luce, Executive Director