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HomeMy WebLinkAbout1984-06-18 HRA Regular Meeting EDINA HOUSING AND REDEVELOPMENT AUTHORITY EDINA CITY COUNCIL MINUTES OF JOINT MEETING ' June 18, 1984 In attendance were Members Bredesen, Richards, Turner and Mayor Courtney. H.R.A./COUNCIL JOINT MEETING CONVENED FOR PUBLIC HEARING ON GRANDVIEW AREA REDEVELOPMENT PLAN, REDEVELOPMENT PROJECT AND TAX INCREMENT FINANCING PLAN. Attorney Erickson advised that State Statute requires that a public hearing be conducted by the Council on the Grandview Area Redevelopment Plan, Redevelopment Project and Tax Increment Financing Plan. Member Richards' motion was seconded by Member Bredesen to convene a joint meeting of the H.R.A. and the Council to hear the Grandview Area Redevelopment Plan, Redevelopment Project and Tax Increment Financing Plan. Ayes: Bredesen, Richards, Turner, Courtney Motion carried. Affidavit of Publication in the Edina Sun on May 30, 1984, was presented by Clerk, approved as to form and ordered placed on file. Planner Craig Larsen presented the proposed Grandview Area Redevelopment Plan and the Grandview Redevelopment Project No. 1, advising that together the Plan and Project serve as the basis for the establishment of a tax increment financing project for the Grandview Area. The area is generally bounded by T.H. 100 on the easterly side, Vernon Avenue on the northerly and westerly sides, and Edenmoor Avenue on the southerly side. The Redevelopment Plan and Project were considered by the Community Development and Planning Commission at its May 30, 1984, meeting and the Commission recommended adoption by the H.R.A. and the Council. Mr. Larsen advised that in order to meet the statutory requirements for the establishment of a tax increment district two • documents are needed. First, the Redevelopment Plan which describes existing conditions, documents problems in the area, and recommends certain activities to correct problems and achieve goals and objectives established for the area. Second, the Redevelopment Project which serves as the finance plan for redevelopment activities. It estimates the public cost of the project, the method cf financing the cost, and the tax increment expected to repay the tax increment bonds. Mr. Larsen pointed out that Section II of the Plan describes existing problems in the Plan Area including a substantial quantity of substandard build- ings, non-conforming buildings and land uses, obsolete uses, and under utilized properties. The arrangement of public parking and the inadequate amount of park- ing in the commercial core of the area are also identified. In addition, traffic and circulation problems set forth in the "Grandview Area Traffic Study", prepared by BRW, Inc. , are incorporated into the Plan. Based upon these problems, the Plan concludes that certain redevelopment activities are warranted. Among the goals and objectives set forth in the Plan are: 1) To promote development and redevelopment in a manner consistent with the policies set forth in the Comprehensive Plan, 2) To improve the efficiency of the street system through implement of the road improve- ments recommended in the "Grandview Area Traffic Study", 3) To promote and secure additional public parking in the area, and 4) To promote and secure the develop- ment of parcels with substandard and non-conforming buildings to more clearly define land uses and provide a more efficient utilization. The Plan also emphasizes improving "the aesthetics and definition of the area through increased buffering, especially landscaping. Mr. Larsen advised that the Redevelopment Project No. 1 anticipates a total public redevelopment cost of approximately $4,500,000. This cost will be paid by the issuance of General Obligation Tax Increment Bonds and through special assessments against benefitting properties. The bonds would be amortized • over 25 years. Public costs include the roadway improvements to Vernon Avenue and the construction of a 400-stall, four level parking ramp on the site now housing storage facilities for the City. Expected private redevelopment includes redevelop- ment of the Biltmore Motel site with condominiums, increased retail and office space near Jerry's complex, redevelopment of three single family houses with eight town- H.R.A. Minutes of 6/18/84 Page Two • house units, and redevelopment of the area containing the Biltmore Bowl, Jerry Leonards and a small office building with additional office space. A later redevelop- ment would involve the railroad property and the industrial area south of Eden Avenue. Mr. Larsen explained that the Plan is proposed to be undertaken in two or more phases. Phase I of the project would involve the following public costs: 1) Demo- lition of existing City storage buildings and construction of a two, level parking ramp (approximately 200 spaces) with the ground floor reserved for City storage, 2) Road improvements referred to as Issue Area 1 in the Traffic Study, i.e. the Sherwood, Eden, Vernon intersection and Link Road, and 3) Construction of a major new intersection serving Jerrys, First Bank and Union 76, including access to the parking ramp. The total public cost of the Phase I project would be $2,556,000. It is proposed that 20% of the cost be specially assessed, leaving $2,150,000 for . which bonds would be sold. The bond issue would be amoritized over a period of 25 years with the tax increment provided by redevelopment and a general inflation increment on the 51 parcels in the District. The Council and staff then discussed the involvement of -private redevelopment in the area, the amortization period, the inflation factor, hearings on improvement projects to be assessed to property owners in the district, funding for the City's storage facility and why the Plan and Project are proposed at this time. No objections being heard, Commissioner Richards introduced the following resolution and moved its adoption: RESOLUTION RELATING TO THE GRANDVIEW AREA REDEVELOPMENT PLAN, GRANDVIEW REDEVELOPMENT PROJECT NO. 1 TO BE UNDERTAKEN PURSUANT THERETO AND THE GRANDVIEW TAX INCREMENT FINANCING PLAN; APPROVING THE GRANDVIEW AREA REDEVELOPMENT PLAN AND GRANDVIEW REDEVELOPMENT PROJECT NO. 1 TO BE UNDERTAKEN PURSUANT THERETO, • THE GRANDVIEW TAX INCREMENT FINANCING PLAN AND THE ESTABLISHMENT OF THE GRANDVIEW TAX INCREMENT FINANCING DISTRICT, AND REQUESTING THE APPROVAL OF THE CITY COUNCIL BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Edina, Minnesota (the "HRA") , as follows: 1. It has been proposed that the HRA approve a redevelopment plan, as defined in Minnesota Statutes, Section 462.421, subdivision 15, to be designated as the Grandview Area Redevelopment Plan (the "Redevelopment Plan") , and a redevelop- ment project to be undertaken pursuant thereto, as defined in Minnesota Statutes, Section 462.421 , subdivision 13, to be designated as Grandview Redevelopment Project No. 1 (the "Project"), and that in order to finance the public redevelop- ment costs to be incurred by the HRA in connection with the Redevelopment Plan and Project, it has been further proposed that the HRA approve a tax increment financ- ing plan, pursuant to the provisions of Minnesota Statutes, Section 273. 74, to be designated as Grandview Tax Increment Financing Plan (the "Financing Plan") which establishes a tax increment financing district, as defined in Minnesota Statutes, Section 273.73, subdivision 9, to be designated as Grandview Tax Increment Fi- nancing District (the "District") . 2. The Redevelopment Plan, the Project, the Financing Plan and the District are described in the attached documents entitled "Grandview Area Redevelopment Plan" and "Grandview Redevelopment Project No. 1 to be Undertaken Pursuant to the Grand- view Area Redevelopment Plan and Grandview Tax Increment Financing Plan of the Housing and Redevelopment Authority in and for the City of Edina, Minnesota," and the Redevelopment Plan, the Project, the Financing Plan and the District as so described are hereby approved, and the Executive Director of the HRA and the attorney for the HRA are hereby authorized and directed to proceed with the im- plementation of the Redevelopment Plan, the Project, the Financing Plan and the District. H.R.A. Minutes of 6/18/84 Page Three 3. The Redevelopment Plan and the Project were transmitted to the Community De- velopment and Planning Commission (the "Commission") for its review and opinion. The Commission reviewed the Redevelopment Plan and Project on May 30, 1984, and adopted a resolution recommending adoption of the Redevelopment Plan and Pro- ject. 4. The Redevelopment Plan, the Project, the Financing Plan and the District, together with the written opinion of the Commission, have been presented to the City Council for a public hearing on the Redevelopment Plan and the Project pursuant to Minnesota Statutes, Section 462.521 and the Financing Plan pursuant to Minnesota Statutes, Section 462.521 and the Financing Plan pursuant to Minne- sota Statutes, Section 273. 74, and subdivision 3. Attes �— . Zhairman C- Executive Direct r Motion for adoption of the resolution was seconded by Commissioner Turner. Rollcall: Ayes: Bredesen, Richards, Turner, Courtney Resolution adopted. Member Richards then offered the following resolution and moved its adoption: RESOLUTION APPROVING THE GRANDVIEW AREA REDEVELOPMENT PLAN AND GRANDVIEW REDEVELOPMENT PROJECT NO. 1 TO BE UNDERTAKEN PURSUANT THERETO AND THE GRANDVIEW TAX INCREMENT FINANCING PLAN FOR THE GRANDVIEW TAX INCREMENT FINANCING DISTRICT, MAKING FINDINGS AND REQUESTING CERTIFICATION OF THE GRANDVIEW TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the City Council of the City of Edina, Minnesota as follows: 1. This Council has received the written opinion of the City Planning Commis- sion as to the Grandview Area Redevelopment Plan (the Redevelopment Plan) and Grandview Redevelopment Project No. 1 (the Project) and Grandview Tax Incre- ment Financing Plan (the Tax Increment Financing Plan) for Grandview Tax Incre- ment District (the District) , and on June 18, 1984, held a public hearing on the same after notice of the public hearing was published in the Edina Sun, the official newspaper of the City, on the 30th day of May, 1984. All persons desiring to be heard were heard. 2. This Council finds that the Project is a redevelopment project within the scope of Minnesota Statutes, Section 462.421, subdivision 13. The Project will contribute to the public health, safety and welfare. 3. This Council finds that the District is a redevelopment district within the scope of Minnesota Statutes, Section 273.73, subdivision 10, as seventy percent (70%) of the parcels in the District are occupied by buildings, streets, utili- ties or other improvements and at least twenty percent (20%) of the buildings in the District contain defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of internal parti- tions or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, and at least an additional thirty percent (30%) of the buildings in the District require substantial renovation or clearance in order to remove such existing conditions as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for inprovement or conversion. H.R.A. Minutes of 6/18/84 Page Four 4. Pursuant to Minnesota Statutes, Section 462.521 , it is hereby found that: (A) The land located within the Project area would not be made available for redevelopment without financial aid sought; (B) The Redevelopment Plan for the redevelopment area within the City in- cluded therein will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of such areas by private enterprise; and (C) The Redevelopment Plan conforms to the general plan for the development of the City as a whole. 5. Pursuant to Minnesota Statutes, Section 273.74, subdivision 3, it is hereby found that: (A) The District is a redevelopment district as defined in Minnesota Stat- utes, Section 273. 73, subdivision 10. (B) The proposed development in the opinion of this Council would not occur solely through private investment within the reasonably foreseeable future and therefor the use of tax increment financing is deemed necessary. (C) The Tax Increment Financing Plan conforms to the general plan for the devel- opment of the City as a whole. (D) The Tax Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the District by private enterprise. (E) The City elects the method of tax increment computation set forth in Minne- sota Statutes, Section 273. 76, subdivision 3, clause (a) . 6. The City Clerk is authorized and directed to request that the appropriate au- thorities in the County of Hennepin establish a tax increment financing district pursuant to Minnesota Statutes, Section 273. 74 for the premises in the City de- scribed in the Tax Increment Financing Plan. Attest: (? _.. , � Mayor City Clerk Motion for adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Bredesen, Richards, Turner, Courtney Resolution adopted. Member Bredesen's motion was seconded by Member Turner to adjourn the Joint Meeting of the Council and the H.R.A. Ayes: Bredesen, Richards, Turner, Courtney Motion carried. Gordon L. Hug es Executive Director