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HomeMy WebLinkAbout1974-11-05 HRA Regular Meeting AGE..DA Housing and Redevelopment Authority of Edina, Minnesota Tuesday, November 51 1974, at 7:30 P.M. Edina Citv Hall 1. Poll Call. 2. .`. -)roval of the Minutes of the Previous Meeting, Held October 1, 1974. 3. Fecommendations and Reports. a A. Resolution by H.R.A. Authorizing Loan from City of Edina. B. Loan Agreement with City of Edina. C. Progress Report on 50th and France Project. D. Synopsis of H.R.A. Involvement in 50th and France Area. E. Special Meeting - November 13, 1974. 4. Accounts and Claims. 5. Adjournment. MINUTES OF THE REGULAR MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA HELD TUESDAY, OCTOBER 11 1974 EDINA CITY HALL 1. Roll Call: Charles W. Freeburg, Chairman James W. Nelson William F. Greer Gary B. Lyall Staff Present Greg Luce, Executive Director David Schnobrich, Intern Lynnae Nye, Secretary 2. =royal of the Minutes of the Previous Meeting, Held September 3, 1974. '!^. Nelson moved the minutes of the September 3, 1974, Housing and Redevelop- ment Authority meeting be approved as presented. Mr. Lyall seconded the motion and upon roll call the following voted: a Ayes: Mr. Nelson, Mr. Freeburg, Mr. Greer, Mr. Lyall Nays: None. Mo?:ion carried. 3. Recommendations and Reports. A. Introduction to 50th and France Studv. Mr. Peter Jarvis of Bather, Ringrose, Wolsfeld, Inc. (BRW), the 50th and France project manager, presented a progress report and projected time schedule. Mr. Jarvis explained that a 50th and France steering committee of nine area businesspeople was established in order to identify a constituency of a workable number of people. The committee members, representing Minneapolis as well as Edina and including large and small merchants and property owners, are: Bob Sykes, Ted Lund, Art Dickey, Clair Peterson, Warren Hinze, Bob Lafferty, Lucille Smith, Del Nelson, and Arnie Storm. He stated that because the business community is vitally affected and, secondarily, the Citizens Advisory Committee (C.A.C. ) is affected, the process recognizes the concerns of those interests and tries to prioritize the consultant's time in response to who is most ultimately affected; input from the steering committee and C.A.C. is included throughout the process as a result. Mr. Jarvis noted the C.A.C. has been put at the level of the steering committee, rather than at the formal review level of the Planning Commission, Council, and Authority, to indicate a more continuous relationship. Ur. Jarvis explained the different phases of the process in relation to the time schedule. Ile stated progress has been made with the Citv of Minneano lis in terms of indirect contact with the alderman and direct contact with the Citv Planning staff and H.R.A. IIe clarified the workshop tool with the steering committee and C.A.C. and distribution of materials and progress reports from the consultant to the H.R.A. and Planning Commission will provide a constant method of communication. In reply to Mr. Lyall, Mr. Jarvis indicated the H.R.A. 's goals statement will be refined somewhat so it can he effectively measured against the alternative plans. Ile added they are pleased with the traffic data input provided by the city staff. Z 10-1-74 H.R.A. Minutes Page 2 Following further discussion, all generally agreed the Authority and staff would meet with the consultants at 12 noon on October 16th at the BRW offices, 7101 York Avenue South, to review the presentation to be made that evening by Mr. Jarvis to the Planning Commission. B. 1975 Budget. Mr. Luce presented and explained the proposed 1975 H.R.A. budget. He indicated the projected salary for the project planner has not been budgeted by the City, all of the costs for contractual services will be related to the 50th and France project, and an estimated amount for land acquisition and improvements is included. The Authority requested an up to date 1975 budget comparative statement of expenditures, and Mr. Luce indicated that i4ould be availa^le at the end of the year. Following brief discussion, Mr. Nelson moved the 1975 H.R.A. budget be accepted as presented and forwarded to the City Council. Mr. Lyall seconded the motion, and upon roll call the following voted: Ayes: Mr. Nelson, Mr. Freeburg, Mr. Greer, Mr. Lyall Nays: None. Motion carried. 4. Adjournment. After brief discussion of the Morningside Citizens Cormittee and the 1974 Housing and Community Development Bill, Mr. Greer moved the meeting be adjourned at 9:05 P.M. Mr. Lyall seconded the motion, and upon roll call the following voted: Ayes: Mr. Nelson, Mr. Freeburg, Mr. Greer, Mr. Lyall. Nays: None. Motion carried. Respectf ly submitte , Greg Luce, Exlive Director LIT PROPOSED FORM OF RESOLUTION AUTHORIZING ACCEPTANCE OF CONTRIBUTIONS AND LOANS BY THE CITY OF EDINA AND EXECUTION OF LOAN AGREEMENT WITH CITY. OF EDINA For Adoption by Commissioners of the- - Edina Housing and Redevelopment Authority I RESOLVED, That thiq Authority obtain funding of its 1975 budget for its redevelopment projects from the City of Edina by means of contri- butions from and loans by the City of Edina to this Authority; that all funds not properly allocable by this Authority to a redevelopment project and included within its public redevelopment costs shall be accepted as a contribution. by the City of Edina, and all funds which are so allocable and included within this Authority's public redevelopment costs shall be accepted as a loan by the City of Edina; that the Chairman and Secretary of the Authority are hereby authorized and directed to enter into a loan agreement with the City of Edina providing for the borrowing by the Authority from the City of all sums received by the Authority from the City during the calendar year 1975, and which are properly allocable to redevelopment projects and included within the public redevelopment cost of the Authority; said agreement to further provide that all funds which are so allocable and included shall bear interest at the rate charged by Edina for interest on special assessments levied by Edina as of the date said moneys are disbursed to the Authority; that the funds borrowed, with interest, shall be repaid to Edina out of the funds received by the Authority from its redevelopment projects; and that none of the moneys so borrowed shall be used in public housing projects as defined in the Minnesota Housing and Redevelopment Act; and which loan agreement shall contain such other and additional terms and conditions, not inconsistent with or contrary to this resolution or to applicable statutes and ordinances, as the Chairman and Secretary shall deem necessary or desirable. TSE/abc 71174_.... ..... .. . .. ......_... _ ..:_:_ --._ ..: .._.e.:,. s.___._____� LOAN AGREE F'NT (1975) THIS AGRE24ENT,. made and entered into as of this r y day of 1975, by and between the CITY OF EDINA, a municipal corporation organised and existing under the laws of the State of Minnesota (hereinafter called "Edina") , and the HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA (hereinafter called "H.R..A.") , WITNESSETH: WHEREAS, Edina has agreed to contribute and loan funds to the H.R.A. for the 1975 fiscal year of the H.R.A. , which corresponds to Edina`s fiscal year, and which in turn corresponds to the calendar year, in the total amount of Si_Lty-five thousand five hundred dollars ($65,500) , and the H.R.A_ has agreed to accept such contribution and such loan, all on the terms and conditions hereinafter set out. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein set forth, Edina and the H.R.A. do hereby agree as follows: 1. Edina does hereby agree to contribute and loan to the H.R.A. , for the period ending December 31, 1975, a sum not to exceed Sixty-five thousand five hundred dollars ($65,500) (hereinafter called the "Funds") . 2. The Funds shall be paid to the H.R.A. in such amounts and at such times as the H.R.A. shall from tim3 to time request. 3. All Funds paid to the H.R.A. shall be allocated by the H.R.A. , to the greatest extent possible and. permissible under Minn. Stat. (1971) §=,62.411, et seq. , knotv-n as the Minnesota Housing and Redevelopment Act (= e "Act") , to a redevelopment project of the H.R.A. as a public redevelop- meat cost, as such terms are defined in the Act (the "Allocated Funds") . 4. All Allocated Funds shall be repaid to Edina with interest on the unpaid portion thereof from time to time outstanding at the rate of Five percent (5%) per annum from the date said Funds are disbursed by Edina to the H.R.A. until paid. All Funds not so allocated (the "Nonall.ocated X Funds") by the H.R.A. to a redevelopment project as a public redevelopment cost shall be a contribution by Edina to the H.R.A, and need not be repaid to Edina. All Funds shall be deemed Allocated Funds when first paid to the H.R.A. and shall bear interest from the respective dates paid to the H.R.A. However, the H.R.A. shall give a written report to Edina within ten (10) days after December 31, 1975, of the respective amounts of Allocated and Nonallocated Funds, as determined by it, and the total of such Nonallocated Funds shall be deemed to have been first paid out to the H.R.A. under this Agreement and, including interest, need not be repaid to Edina. The balance of the funds paid out hereunder shall be Allocated Funds bearing interest as above determined. 5. The Allocated Funds, with interest, shall be repaid to Edina out of funds received by the H.R.A. from its redevelopment projects, with each such payment made to Edina to be applied first to interest then due and the balance to principal. The E.R.A. shall make every effort to repay the Allocated Funds, with interest, to Edina as soon as possible, but, as stated, shall be obligated to make repayments only out of funds received from its redevelopment proiects. 6. None of the Funds shall be used in any way for, or in support of, directly or indirectly, any public housing projects as defined in the Act. 7. The H.R.A. shall allocate all of the Funds which it can properly and legally allocate to a redevelopment project as public redevelopment costs, so that the maximum amount of the Funds will constitute Allocated Funds under this Agreement. 8. Any of the Funds -not paid to, or encumbered by, the H.R.A. as of and including December 31, 1975, shall not thereafter be disbursed by Edina except pursuant to a new loan agreement then or thereafter entered into. For purposes hereof, such Funds shall be deemed encumbered by the H.R.A. if the H.R.A. is then under a written agreement to pay the Funds for labor, materials, or services rendered or to be rendered in connection with a redevelopment project then being studied or carried out by the H.R.A. -2- t 9. The H.R.A. shall keep accurate books and records of all of its financial transactions in a manner consistent with accepted accounting principles, and shall maintain all such books and records at its main office at 4801 West 50th Street, Edina, Minnesota. Edina, and its authorized repre- sentatives and agents, shall have the right to examine and copy all such books and records at reasonable intervals during normal. business hours. 10. All notices, reports, or demands required or permitted to be given under this Agreement shall be in writing and shall be deemed to be given when delivered personally to any officer of the party to which notice is ^eing given, or when deposited in the United States mail in a sealed en-:elope, with registered or certified mail postage prepaid thereon, ad- dressed to the parties at the following addresses: a To Edina: 4801 West 50th Street Edina, Minnesota 55424 Attention: City Manager To H.R.A. : 4801 West 50th Street Edina, Minnesota 55424 Attention: Executive Director Such addresses may be changed by either party upon notice to the other party give:: as herein provided. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of the day and year first above written. CITY OF EDINA by Its Mayor and Its Manager HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA by Its Chairman and Its Secretary -3- `y J I STATE OF ITINNESOTA ) SS. CO=2 OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 1975, by James VanValkenburg and Warren C. Hyde, as Mayor and City Manager, respectively, of the City of Edina. STAB OF MINNESOTA ) SS. COL'.-TY OF HENTNEPIN ) The foregoing instrument was acknowledged before me this day of -1975 , by Charles W. Freeburg and Lawrence W. Rixe, as Chairman and Secretary, respectively, of the Housing and Redevelopment Authority of Edina, Minnesota. -4- HISTORY OF THE HOUSING AND RED:17IELOPMENT AUTHORITY AND ITS INVOLVEMENT IN THE 5077H AND FRANCE AREA September, 1973 -Letters were received by the 'dina City Council from property owners in the 50th and France area expressing interest in redevelopment through the creation of a H.R.A. October, 1973 - -A petition was circulated and sent to the City Council signed March, 1974 by 3,700 residents and shoppers urging the city to make improve- ments in the physical make-up o= the 50th and France area. -Input from the Chamber of Coerce as to the need for a H.R.A. and information from surrounding areas and sources on the positive and negative aspects of a H.R.A. were gathered. February 4, 1974 -A resolution providing for an official public hearing to determine the need for a H.R.-'_. to function in Edina was adopted by the City Council. March 4, 1974 -A resolution declaring the reed for a H.R.A. was adopted by the City Council, and the search for commissioners began. April 1, 1974 -Confirmation of mayor's appoi-zment of five commissioners by the City Council to the H.R.t.. They were: Gary B. Lyall, Charles W. Freeburg, James W. 'nelson, Lawrence W. Rixe, and William F. Greer. April 8, 1974 -First meeting of the Edina .=.A, was held with the election of officers and a review of h—i-laws and other organizational matters. April 16, 1974 -Adopted by-laws -Approved a contract for sta=f- and other services with the City of Edina until December 31, 10-75. -A proposed budget of $40,200 for the remainder of 197 + was submitted. -It was decided by the City Coy-_ncil that all costs incurred which the H.R.A. cannot properly allocate to a project would be contributed by the City but that the H.R.A. will repay all allocated project costs with 5-: interest. May 7, 1974 -Interested associations were -invited to present their goals and objectives so that the Authority could be aware of those desires in undertaking, any project in the 50th and France area. Addressing the Authority at t-is time were the Chamber of Commerce, the 50th and France 3usiness and Professional Associ- ation, and the Wooddale iNeiz.` orhood Council. -Adopted a resolution approv;-7 the borrowing agreement with the City of Edina after the s_-:e resolution was passed by the City Council. y History of H.R.A. Page 2 May 23, 1974 -Presentation of flow chart for a 50th and France project showing key dates in the planning process leading up to approval by the City Council. -Authority directed the staff to prepare a feasibility study ,for the 50th and France area for the purpose of obtaining such information as was necessary for the Authority to determine whether a redevelopment project would be warranted. -Created CAC (Citizens Advisory Committee) to inform H.R.A. of the feelings of interested businessmen, neighborhood groups and citizens of Edina. June 4, 1974 -Presentations representing various points of view in regard to tax increment financing were given by: Don Pryor, Edina School System;`Pat Lucas, League of Women Voters; Wayne Johnson, Hennepin County Director of Finance and Records; Dave Hegg, Director, H.R.A. of St. Cloud, Minnesota; and John Palmer, Attorney for Minnesota Association of H.R.A. -Presentation by Wooddaie Neighborhood Council of resolution covering seven basic planning principles to be followed in implementing any project in the 50th and France area. - -H.R.A. commissioners decided to submit in writing their individual imputs to be incorporated with those of the community and various other groups in establishing a specific set of goals for the 50th and France project, this to be done by the Executive Director. -Determined the CAC will consist of a seven member steering committee with open membership. June 19, 1974 -Initial presentation of H.R.A. goals for a 50th and France project. -Table of contents for feasibility study presented dividing study into three main areas: statement of conditions, statement of assumptions, and statement of feasibility. -7 members were appointed to the CAC -The executive director was in the process of compiling a list of qualified consultants and their background and experience for submission at the next H.R.A. meeting. July 2, 1974 -Progress report on feasibility study. -Listing of six possible consulting firms. -Report given on first CAC meeting. July lo, 1974 -Progress report on feasibility study involving preliminary reports on traffic, parking, building conditions and a cost analysis of a project. -Information concerning the consulting firms was to be circulated among the commissioners. August 6, 1974 -Presentation of Feasibility Study concluding that unless out- side sources of income are found, the project would take over 20 years to complete, an intolerable amount of time owing to potential technological changes after 10-15 years which could History of H.R.A. Page 3 decrease the value of a particular facility. Consequently, 200 of the project must be assessed to the businessmen with possible alternatives of allowing staged or piecemeal projects. August 7 and -Meetings were held with landowners and tenants of the 50th and August 1.4, 1974 France area discussing their willingness to accept a special assessment of 20% of the project cost. August 22, 1974 -CAC Report No. I was presented listing priorities and concerns of that committee. -A resolution was passed, after endorsement by businessmen of the area on the need for a study, to interview three consulting firms with selection of one as consultant on the 50th and France project. September 3, 1974 -Consultant selection committee recommended that the firm of Bather, Ringrose, Wolsfeld, Inc. (BRW) would be most qualified to do the project. -After selection and approval of BRW as consultants, the H.R.A. chairman was authorized to sign a professional services agreement between the Authority and BRW for $15,000. -Contract requires that the consultant prepare three categorical alternative plans, outline the advantages and disadvantages (cost/benefit) of each , review them with the affected business- men, commissions and staff, and, after joint selection of the preferred alternative, the consultants would develop that preferred alternative concept into a final plan. -Presentation and discussion of past plans for the Minneapolis side of 50th and France. September, 1974 -The H.R.A. staff gathered inventory data on the 50th and France area. Collected information was on physical elements, demo- graphics, and real estate data. The consulting firm of BRW was, at the same time, conducting a consus of landowners and tenants in the 50th and France area getting their impressions of problems in the area, possible solutions and future plans for their businesses. October 1, 1974 -An introduction to the 50th and France study was made by Peter Jarvis (project manager), who presented a progress report on work that had been done to date and explained the flow chart (time schedule) to be Followed in the study. He announced the formation of a 9 member Businessmens Steering Committee and stated that the City of Minneapolis had been contacted and would be informed of all future actions. October, 1974 -The H.R.A. staff continued to gather demographic and other information of the 50th and France area for the study. With the completion of the inventory phase of the study, the consultant History of H.R.A. Page 4 made an assessment of problems in the area. With the start of the problem assessment Chas?, -he consultant and .H.R.A. staff have met twice with the CAC, once with the H.R.A. and once with the Planning Commission =o both inform them and to receive their reactions to the reports and conclusions of the consul- tant. The consultant then =o=ulated more refined goals and objectives for the area and L-e strategy for solution to the problems in the area.