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HomeMy WebLinkAbout1985-05-06 HRA Regular Meeting EDINA HOUSING AND REDEVELOPMENT AUTHORITY EDINA CITY COUNCIL MINUTES OF JOINT MEETING MAY 6, 1985 Answering rollcall were Commissioners/Councilmembers Bredesen, Kelly, Richards, Turner and Courtney. MINUTES of the H.R.A. Meeting of April 1, 1985. were approved as submitted by motion of Commissioner Turner, seconded by Commissioner Kelly. Ayes: Bredesen, Kelly, Richards, Turner, Courtney Motion carried. Mayor Courtney announced that this joint meeting of the Edina H.R.A. and Edina City Council had been convened for the purpose of conducting a public hearing on the proposed "Edinborough" project in southeast Edina and that it would be required that action be taken by the H.R.A. and the Council individually. PUBLIC HEARING CONDUCTED ON MIXED USE DEVELOPMENT; PROPOSED PROJECT PRESENTED. Affidavits of Notice were presented by Clerk, approved and ordered placed on file. Mr. James Van Valkenburg gave a brief introduction of the various components of the proposed project as follows: 1) Elderly housing will provide 202 units in an 18-story building with two restaurants, one open to the public, developed by Henry Hyatt's group, Partners for Senior Communities; 2) Office phase will consist of approximately 200,000 square feet, developed by Winfield Development, represented by Rick Martens; 3) Residential housing to be completed in 7 phases will provide 392 condominium units of which 80% will be designated for moderate income buyers, developed by Laukka and Associates, represented by Larry Laukka; and 4) City owned public park in the center of the development. Mr. Van Valkenburg advised that Edina East Housing Foundation, a non-profit corporation, will be involved in second mortgages on the residential property. Peter Jarvis, of the firm of BRW, then gave a summary of the proposed project and stated that the basic site plan is the same as the Council saw last Fall. Refinements will demonstrate the land- scaping and architectural concepts. Mr. Jarvis presented graphics showing the residential units located on the northerly one-half of the site with access from York Avenue and also from the west; the public park located in the center of the site with an enclosed structure of about 42,000 square feet; two office buildings flanking the elderly high-rise of approximaLely 110,000 square feet each; and a 18-story elderly building of approximately 202 units. Parking facilities for each component were pointed out. Mr. Jarvis advised that Phase I of the proposed project would include the southeast office building, the elderly high-rise, the park and the first pod of housing. Each pod of 56 residential units would be constructed as a consecutive phase of the project. The second phase office building is identified to go under construction with Phase IV of the housing in 1987. Mr. Jarvis then showed a graphic illustrating the footprint of the park which interconnects structurally the elderly, the west office building and the east office building into one large integrated project. The park in its entirety under one roof is approximately 39,000 square feet, with multi-level facilities (e.g. storage, restrooms) that yield a total of 48,000 square feet. The recreation and cultural area within the park is approximately 44,000 square feet. The park will be heavily landscaped and is anchored on the east end by the amphitheatre and on the west end by the exhibition skating area or gymnastics area. It is designed to accommodate a great variety of functions; basically, cultural and quiet activities located in the southerly half and athletic and/or banquet capabilities in the northerly half. Mr. Jarvis then presented renderings showing the detail of the residential areas with regard to materials, colors and landscaping. He noted that the landscape budget equates to $2,300 per unit and is necessary because of the density which approximates 40 units per acre. H.R.A./COUNCIL MINUTES - May 6, 1985 Page Two • City Attorney Tom Erickson advised that there are two legal documents before the Council and the Edina Housing and Redevelopment Authority (H.R.A.) : 1) the Southeast Edina Redevelopment Plan which must be amended to accommodate this development and proposed agreements, and 2) the agreement between the H.R.A. and the East Edina Housing Foundation (the "HRA Contract") . That agreement requires that Phase I-only be conveyed to the Foundation and the H.R.A. also agrees in connection with the sale to make certain improvements, e.g. public parking, landscaping, grading and construction of the park itself. It agrees also to try to obtain City approval for certain other public improvements such as streets and utilities and eventually for the City to issue tax increment bonds for the cost of doing the work and housing revenue bonds for the elderly development. The H.R.A. also agrees to make certain interest reduction payments to assist in the production of low and moderate income housing. The Foundation in return agrees to build the proposed improvements and has the right to exercise options to acquire the balance of these phases and the right to assign its obligations to another redeveloper with the approval of the H.R.A. Mr. Erickson explained that the Foundation then proposes to sign a subsequent agreement, with the approval of the H.R.A. , with The Edina Partnership. The Partnership is comprised of York Edina Partnership (a general partnership com- prised of Winfield Development, Inc. , Laukka, Inc. , and Jarvis, Inc.) , Henry Hyatt, Sheldon Baskin and Daniel Epstein; and Thomas W. LaSalle. The Foundation agrees in that agreement to assign its rights under the HRA Contract for the development of the project. The Partnership agrees to assume the Foundation's obligations to buy the office land, the elderly land and to develop the condo- minium property. The ongoing aspect of the Foundation relates only to the condo- minium property. The value produced by the public dollars will go into a pool. That pool will be used in part, 1) to reduce the cost of the housing so that low and moderate income people can afford it, and 2) to provide financing by the means of a second mortgage to assist low and moderate income buyers. The second mort- gage dollars when repaid will go into a pool again for development of this area and when this area is developed completely then it will be available for providing housing in other parts of the East Edina Neighborhood (that part of the City east of Hansen Road) . Mr. Erickson pointed out that the Partnership in turn has the right to exercise the options that the Foundation may exercise and in connection therewith there are certain agreements that must be again entered into for the exercise of those options relative to how much of the pool will go to second mortgages, how much will go to write-downs, what is the sale price of each sub- sequent phase, etc. The Partnership in turn has the right to assign its develop- ment rights to three separate entities: one which will develop the office site, one which will develop the elderly site and one which will develop the condominium site. Each of the three developers will be insulated from the acts of the others, but are tied into an overall agreement for purposes of reviewing their activities, rights and duties. It was noted that the Foundation itself is a non-profit corpo- ration of five members with two appointed by the City Council and three appointed by the H.R.A. Application has been made for a 5010 qualification which would allow contributions to it to be tax deductible. Its purpose is to promote housing in the East Edina Neighborhood and its major function in connection with this proposal will be to issue and administer the second mortgages for the low and moderate income home buyers. Gordon Hughes, Assistant City Manager, stated that this project is located within a tax increment financing district and that the • total bond issue that is contemplated for this project is $11,000,000. The pro- posed uses of the bond issue include park improvements, a one level public parking deck, various improvements related to the condominium site and capitalized interest costs. Coopers and Lybrand, certified public accountants, have assisted staff in reviewing the tax increment projections and it was concluded that the project does H.R.A./COUNCIL MINUTES - May 6, 1985 Page Three have a comfort margin within the tax increment such that it will not be a burden on the general obligations of the City. The end result of the Lax increment district will be a substantial pool that will remain within the tax increment district at the conclusion of the project. Mr. Hughes then explained how the second mortgage pool would work. The value of the land and improvements that the City will construct results in the amount of money in the pool of approxi- mately $1,000,000. A portion of that pool will be used to directly write-down the cost of the housing. Another portion would be used to assist the first time home buyer in qualifying for a mortgage for the unit. An example was given of a typical purchase of an individual housing unit. When an owner decides to sell his unit the second mortgage is due at that time with a 5% interest rate added on. Those monies will then be returned to the Foundation who then in essence can turn those funds over to assist a new buyer. Regarding the elderly housing of approximately 202 units, 40 of those will be rented at rates affordable for low and moderate incomes of about $650 per month. Other market rate units will range from $850 to $1,340 per month. The building will also contain a day care facility to be used principally by people living in the condominium portion of the project. No comment being heard from the public, the following actions were taken by the Housing and Redevelopment Authority and the Edina City Council. Commissioner Richards introduced the following resolution and moved its adoption: RESOLUTION APPROVING 1985 AMENDMENT TO THE SOUTHEAST EDINA REDEVELOPMENT PLAN BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") , as follows: 1. The HRA and the Edina City Council have previously approved a redevelopment plan, as defined in Minnesota Statutes, Section 462.421, subdivision 15, designated as the Southeast Edina Redevelopment Plan (the "Plan") , which also constitutes a redevelopment project, as defined in Minnesota Statutes, Section 445.421, sub- division 13, and a tax increment financing plan, pursuant to the provisions of Minnesota Statutes, Section 273.74. The Plan established a tax increment finan- cing district, as defined in Minnesota Statutes, Section 273.73, subdivision 9. It has been proposed that the HRA approve amendments to the Plan, designated as the 1985 Amendment to the Southeast Edina Redevelopment Plan (the "1985 Amendment") , which includes, among other things, the establishment of an interest reduction program under the provisions of Minnesota Statutes, Section 462.445, subdivision 11 (the "Interest Reduction Program") . 2. The 1985 Amendment is described in the document entitled "1985 Amendment to the Southeast Edina Redevelopment Plan" which has been presented to this Board, and the 1985 Amendment as so described is hereby approved, and the Executive Director of the HRA and the attorney for the HRA are hereby authorized and directed to proceed with the implementation of the 1985 Amendment. 3. It is acknowledged that it is presently proposed that a majority of the payments to be made by the HRA pursuant to the Interest Reduction Program will be in the form of periodic payments over a number of years and such payments are hereby authorized to be made over such period. Motion for adoption of the resolution was seconded by Commissioner Kelly. Rollcall: Ayes: Commissioners Bredesen, Kelly, Richards, Turner, Courtney Resolution adopted. ATTEST: ChV rman i xe utive Direc or H.R.A./COUNCIL MINUTES - May 6, 1985 Page Four Councilmember Richards introduced the following resolution and moved adoption: RESOLUTION APPROVING THE 1985 AMENDMENT TO THE SOUTHEAST EDINA REDEVELOPMENT PLAN BE IT RESOLVED by the City Council of the City of Edina, Minnesota, as follows: 1. Recitals. This Council and the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") have previously approved a redevelopment plan and rede- velopment project, under Minnesota Statutes, Section 462.411, et. seq. , and a tax increment financing plan, as defined in Minnesota Statutes, Section 273.73, subdivision 9, designated as the Southeast Edina Redevelopment Plan (the "Plan") . The Plan established a tax increment financing district, as defined in Minnesota Statutes, Section 273.73, subdivision 9 (the "District") . The HRA has approved amendments to the Plan designated as the 1985 Amendment to the Southeast Edina Redevelopment Plan (the "1985 Amendment") , which include, among other things, the establishment of an interest reduction program under the provisions of Minnesota Statutes, Section 462.445, subdivision 11 (the "Interest Reduction Program") and has requested that this Council approve the 1985 Amendment. This Council held a public hearing on the 1985 Amendment on May 6, 1985, after notice of the public hearing was published in The Edina Sun, the official newspaper of the City, on April 25, 1985, at which time all persons desiring to be heard on the subject were given an opportunity with respect thereto. 2. Approval. The 1985 Amendment is hereby approved. 3. Findings Under the Municipal Housing and Redevelopment Act. Pursuant to Minnesota Statutes, Section 462.521, it is hereby found that: (A) The land located within the 1985 Project Area, as defined in the 1985 Amendment would not be made available for redevelopment without financial aid sought. (B) The redevelopment plans for the 1985 Project Area as set forth in the 1985 Amendment will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment of the 1985 Project Area by private enterprise; and (C) The 1985 Amendment conforms to the general plan for the development of the City as a whole. 4. Interest Reduction Program. It is acknowledged that it is presently pro- posed that a majority of the payments to be made by the HRA pursuant to the Interest Reduction Program will be in the form of periodic payments over a number of years and the HRA is hereby authorized to make such payments over such period. Motion for the adoption of the foregoing resolution was seconded by Member Turner. Rollcall: Ayes: Members Bredesen, Kelly, Richards, Turner, Courtney_,_ Resolution adopted. ----- ATTEST: May r A City Clerk Commissioner Richards introduced the following resolution and moved adoption: RESOLUTION RELATING TO THE SOUTHEAST EDINA REDEVELOPMENT PLAN: APPROVING THE SALE OF LAND AND AUTHORIZING THE EXECUTION OF DOCUMENTS BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") , as follows: H.R.A./COUNCIL MINUTES - May 6, 1985 Page Five 1. The HRA and the Edina City Council have previously approved a redevelop- ment plan, as defined in Minnesota Statutes, Section 462.421, subdivision 15, designated as the Southeast Edina Redevelopment Plan (the "Plan") . Acting pursuant to the Plan the HRA has acquired certain land in the area included in the Plan and it has been proposed that the HRA sell and transfer a portion of such land to the East Edina Housing Foundation (the "Foundation") , pursuant to a Land Sale Agreement by and between the HRA and the Foundation (the "Agree- ment") . A draft of the Agreement has been prepared and submitted to the HRA and is hereby directed to be filed with the Executive Director of the HRA. 2. On May 6, 1985, the HRA duly called and held a public hearing on the sale and transfer of such land to the Foundation pursuant to the Agreement in accord- ance with Minnesota Statutes, Section 462.525, subdivision 2. 3. The form of the Agreement is hereby approved subject to such modifications as are deemed appropriate and approved by the attorney for the HRA and the Executive Director of the HRA, which approval shall be conclusively evidenced by the execution of the Agreement by the Chairman and Secretary or Assistant Secretary of the HRA. The Chairman and Secretary or Assistant Secretary of the HRA are directed to execute the Agreement upon execution thereof by the Foundation. The Chairman and Secretary or Assistant Secretary of the HRA are also authorized and directed to execute such other instruments as may be required to give to the transaction herein contemplated. Motion for adoption of the foregoing resolution was seconded by Commissioner Kelly. Rollcall: Ayes: Commissioners Bredesen, Kelly, Richards, Turner, Courtney. Resolution adopted. ATTEST: C irman i; xecutive Di ct Councilmember Richards introduced the following resolution and moved adoption: RESOLUTION RELATING TO THE SOUTHEAST EDINA REDEVELOPMENT PLAN: AUTHORIZING THE EXECUTION OF DOCUMENTS BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the "City") , as follows: 1. The Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") and the Edina City Council have previously approved a redevelopment plan, as defined in Minnesota Statutes, Section 462.421, subdivision 15, designated as the South- east Edina Redevelopment Plan (the "Plan") . Acting pursuant to the Plan the HRA has acquired certain land in the area included in the Plan and it has been pro- posed that the HRA sell and transfer a portion of such land to the East Edina Housing Foundation (the "Foundation") , pursuant to a Land Sale Agreement by and between the HRA and the Foundation (the "Agreement") . The Agreement provides for the execution of a consent by the City (the "Consent") . A form of the Consent is attached as an exhibit to the Agreement. A draft of the Agreement has been prepared and submitted to the City and is hereby directed to be filed with the City Clerk. 2. The form of the Consent is hereby approved subject to such modifications as are deemed appropriate and approved by the city attorney and the City Manager, which approval shall be conclusively evidenced by the execution of the Consent by the Mayor and City Manager. The Mayor and City Manager are directed Lo execute the Consent upon execution of the Agreement by the HRA and the Foundation. The Mayor and City Manager are also authorized and directed to execute such other H.R.A./COUNCIL MINUTES - May 6, 1985 Page Six instruments as may be required to give effect to the transaction herein contemplated. Motion for adoption of the foregoing resolutuon was seconded by Councilmember Turner. Rollcall: Ayes: Members Bredesen, Kelly, Richards, Turner, Courtney Resolution adopted. j C ATTEST: May r City Clerk Councilmember Richards offered Ordinance No. 825-A3 for Second Reading as follows and moved its adoption: ORDINANCE NO. 825-A3 AN ORDINANCE AMENDING THE ZONING ORDINANCE (NO. 825) BY ADDING TO THE MIXED DEVELOPMENT DISTRICT (MDD-5) THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA, ORDAINS: Section 1. Section 6 of Ordinance No. 825 of the City is amended by adding the following thereto: "The extent of the Mixed Development District (Sub-District MDD-5) is enlarged by the addition of the following property: Tract 1: That part of the West 500.5 feet of the East 859.375 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 28, Range 24, which lies Westerly and Southerly of the center line of York Avenue South, as said center line is described in Book 73 of Hennepin County Records, page 4017939, according to the Government Survey thereof. Tract 2• That part of the West 193.875 feet of the East 358.875 feet of the North 1211.68 feet of the Southeast Quarter of the Southwest Quarter, Section 32, Township 28, Range 24, lying Southerly of the center line of York Avenue South, as said center line is described in Book 73 of Hennepin County Records, page 4017939, according to the Government Survey thereof. Tract 3: That part of the South half of the Southwest Quarter of Section 32, Township 28, Range 24, described as beginning at a point on the South line thereof 859.375 feet West along said South line from the Southeast corner of the Southwest Quarter of said Section 32; thence West along said South line 445.5 feet; thence North, parallel to the East line of said Southwest Quarter to the North line of the South Half of the Southwest Quarter of said Section 32; thence East along said North line 445.5 feet, more or less, to an intersection with a line drawn North parallel to the East line of said Southwest Quarter, from the point of beginning; thence South along said last described parallel line to the point of beginning, according to the Government Survey thereof. Tract 4• The South 6.565 rods of the East 21.750 rods of the Southeast 1/4 of the Southwest 1/4 of Section 32, Township 28, Range 24, excepting and excluding therefrom a tract of land described as follows: H.R.A./COUNCIL MINUTES - May 6, 1985 Page Seven That part of the East 21-3/4 rods of the Southeast 1/4 of the Southwest 1/4 of Section 32, Township 28, Range 24, according to the United States Govern- ment Survey thereof, Hennepin County, Minnesota, except the North 73.435 rods thereof, which lies Easterly of a line drawn parallel with and 60 feet Westerly of the following described line: Beginning at the point of the intersection of the North line of said Southwest 1/4 with the centerline of York Avenue South as shown on and dedicated by the plat of YORKTOWN, according to the recorded plat thereof, Hennepin County, Minnesota; thence Southerly along an extension of said said centerline 1632.47 feet; thence Southeasterly 435.9 feet along a tangential curve to the left, having a radius of 555 feet and a central angle of 45 degrees; thence Southeasterly tangent to last described curve 451.65 feet; thence Southeasterly 435.95 feet along a tangential curve to the right, having a radius of 555 feet and central angle of 45 degrees, 00 feet, 19 minutes to a point in the Southerly extension of the East line of said Southwest 1/4, distant 103.43 feet South of the Southeast corner of said Southwest 1/4 and there ;terminating. Tract 5• Lot 1, Block 1, Northwestern Financial Center" Sec. 2. This ordinance shall be in full force and effect upon its passage and publication. Motion for adoption of the ordinance was seconded by Councilmember Bredesen. Rollcall: Ayes: Members Bredesen, Kelly, Richards, Turner, Courtney Ordinance adopted. ATTEST: Mlor i City Clerk Councilmember Richards introduced the following resolution and moved its adoption: RESOLUTION APPROVING PRELIMINARY PLAT FOR EDINBOROUGH BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that that certain plat entitled "Edinborough", platted by the Housing and Redevelopment Authority of Edina, Minnesota, and presented at the regular meeting of the City Council of May 6, 1985, be and is hereby granted preliminary plat approval. Motion for adoption of the resolution was seconded by Councilmember Bredesen. Rollcall: Ayes: Member Bredesen, Kelly, Richards,+ Turner, Courtney Resolution adopted. Commissioner Bredesen introduced the following resolution and moved adoption: RESOLUTION AMENDING AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA AND THE CITY OF EDINA BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") as follows: WHEREAS, the HRA and the City of Edina ("Edina") entered into an Agreement dated May 8, 1974 (the "Agreement") ; and WHEREAS, the HRA and Edina now desire to amend the Agreement in the manner below set out. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements hereinafter set forth, the HRA and Edina do hereby agree as follows: H.R.A./COUNCIL MINUTES - May 6, 1985 Page Eight • 1. The first sentence in Section 1, paragraph b. of the Agreement is hereby changed to read as follows: "The Executive Director shall be that person from time to time appointed by the Director." 2. The Agreement, as amended hereby, shall be and remain in full force and effect. Motion for adoption of the resolution was seconded by Commissioner Richards. Rollcall: Ayes: Commissioners Bredesen, Kelly, Richards, Turner, Courtney Resolution adopted. Councilmember Bredesen introduced the following resolution and moved adoption: RESOLUTION AMENDING AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA AND THE CITY OF EDINA BE IT RESOLVED by the City Council of the City of Edina, Minnesota ("Edina") as follows: WHEREAS, Edina and the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") entered into an Agreement dated May 8, 1974 (the "Agreement") ; and WHEREAS, Edina and the HRA now desire to amend the Agreement in the manner below set out. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements hereinfater set forth, Edina and the HRA do hereby agree as follows: 1. The first sentence in Section 1, paragraph b. of the Agreement is hereby changed to read as follows: "The Executive Director shall be that person from time to time appointed by the Director." 2. The Agreement, as amended hereby, shall be and remain in full force and • effect. Motion for adoption of the resolution was seconded by Councilmember Kelly. Rollcall: Ayes: Councilmembers Bredesen, Kelly, Richards, Turner, Courtney Resolution adopted. There being no further business on the agenda for the Joint HRA and City Council meeting, Member Bredesen's motion to adjourn was seconded by Member Turner. Ayes: Bredesen, Kelly, Richards, Turner, Courtney Motion carried. Gordon L. Hughe Executive Director •