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HomeMy WebLinkAbout1986-12-01 HRA Regular Meeting MINUTES EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 1, 1986 • Answering rollcall were Commissioners Bredesen, Kelly, Richards, Turner and Courtney. RESOLUTION ADOPTED RELATING TO SOUTHEAST EDINA (HEDBERG) PROPERTY. Motion of Commissioner Bredesen was seconded by Commissioner Turner and unanimously carried to continue the meeting and discuss the adoption of the resolution relating to Southeast Edina property with the Edina Council Agenda item VIII.B. Accordingly, the Hedberg property acquisition was considered concurrently by the HRA and the City Council. Manager Rosland recalled that at the November 17, 1986 Council Meeting the Council had been informed that the vacant land in the southeast area of the City owned by the Hedberg family is apparently for sale. Staff was asked to research the matter as to land area, use of tax increment financing by the HRA, acquisition of the property and the existing Southeast Edina Tax Increment District. Planner Craig Larsen presented a graphic pointing out that the property is bounded on the west by France Avenue, on the east by York Avenue and on the south by I-494 and the Bloomington border. Dayton's Home Store is immediately to the northwest and the York Plaza Apartments to the northeast. There are approxi- mately 95 acres of vacant land with 30.03 acres lying in the existing tax increment district. Hedberg property outside the district is 53.89 acres, with 2.6 acres in Bloomington. In the subject area 8.29 acres is owned by the Decourcy family. Attorney Erickson presented a legal analysis on the subject property summarized as follows. A tax increment district is needed to capture the tax increment and • may be useful whether or not the property is owned by the HRA or the City. The existing Southeast Edina Tax Increment District cannot be expanded to include additional property. Three new kinds of tax increment district can be created: a) a redevelopment district, b) a housing district, and c) an economic development district. Mr. Erickson explained the duration, allowed uses and applicable requirements for creation of each of the districts and the time limitation. If the HRA determines to assist in the development of the subject property, it can amend the Southeast Edina Redevelopment Plan to all the undeveloped property. This would allow pooling of tax increment from all districts in the Plan area to pay for redevelopment activity in any district in the Plan area. This would be a necessary and desirable step prior to creation of tax increment districts. From a legal viewpoint, Mr. Erickson made these recommendations: 1) amend the Southeast Edina Redevelopment Plan to include all unimproved property in the subject area, and 2) initiate studies to determine whether redevelopment projects and redevelopment district or other tax increment districts can be created. Mayor Courtney asked if the existing tax increment district could afford the proposed acquisition. Mr. Rosland said that the cash flow analysis illustrates that without almost immediate development of the property, substantial deficits will occur in the district's reserve balance. The reason for this is that the resources of the entire district are required to support the Edinborough project for the next six to seven years. After 1993, excess increments will be available for other projects. As an alternative, the HRA could negotiate a contract with a developer prior to pursuing acquisition. Such a contract could perhaps reduce the HRA's exposure caused by holding the land. Advantages and disadvantages of HRA ownership were then pointed out. Mayor Courtney called for comments from the Commissioners/Members. Commissioner/Member Richards recalled that at the last • meeting the Council had talked about the possibility of developing some housing on the subject site in response to a perceived need for people of moderate means and young people. The development of the site in a planned unit development (PUD) concept would make more sense than to see it develop in a piecemeal fashion with a number of developers. He cited the example of the Edinborough housing project Edina HRA Minutes • December 1, 1986 Page Two which has worked whereby the City controlled that site by acquiring it and then entering into a cooperative venture with the private sector who assumed the risk associated with holding the property. The City would then be participating in the sense of creating rather than reacting to some type of overall development plan. The private development would then create a value that could be captured in whatever district the City might be able to create to pay back initial costs associated in acquiring the property. He added that he felt going that route would be in the best interests of Edina. Mayor Courtney said that he agreed with those comments. Commissioner/Member Bredesen said his reaction was very positive and that the City should do something unique with this property which is the last major parcel of vacant land in the City. Commissioner/Member Turner said that two issues are important for this area and are mentioned in the Comprehensive Plan: 1) the need to minimize the traffic impact of any development on this site, and 2) housing at a level to accommodate the people who would work in this general area. She said she felt that a PUD is the best way to address those two issues and that the City's involvement would provide a chance to minimize the traffic impact of development in this area. Commissioner/Kelly reiterated her approval. John Hedberg was present and was asked for his comments. Mr. Hedberg advised that they want to sell their property, want to see it developed in the best way possible for Edina and want to obviously benefit from the sale. He indicated they would have no objection to talking to representatives from the City, but that in fairness to the developers they have contacted they would want to see what the private • sector has to offer. Commissioner/Member Richards said that he has asked that a resolution be drafted that would authorize and direct the HRA staff to: 1) negotiate with the owners of the property for its acquisition, 2) prepare amendments to the Southeast Edina Redevelopment Plan to include all of the redevelopment property in that area, and 3) to gather information to determine the feasibility of the project. Commissioner Richards thereupon introduced the following resolution and moved its adoption: RESOLUTION BY HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA WHEREAS, there is within the Southeast Edina area a tract of land, comprising approximately 95 acres (of which 2 acres are in the City of Bloomington) , which is the largest tract of undeveloped land remaining in the City of Edina (the "City") , and which is legally described on Exhibit A attached hereto and hereby made a part hereof (the "Redevelopment Property") ; and WHEREAS, it may be desirable that the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") own the Redevelopment Property so that it can better control and plan the development thereof, including the uses thereof, and the timing and density of development thereof; and WHEREAS, it may be necessary or desirable to create one or more tax increment districts on the Redevelopment Property to assist with the purchase, ownership and development of the Redevelopment Property. NOW, THEREFORE, BE IT RESOLVED, that the Director and Executive Director of the HRA, and the Attorney for the HRA, be and hereby are, directed and authorized to: 1. Negotiate with the owners of the Redevelopment Property as to the terms of purchase by the HRA of the Redevelopment Property, and to report back to the • HRA as to such terms for further approvals and directions: 2. Prepare amendments to the Southeast Edina Redevelopment Plan to include therein all of the Redevelopment Property with the City for review and adoption by the HRA; and 3. Make such surveys, tests and studies, and gather such information, as they deem necessary, to determine the feasibility of creating, and the ability to Edina HRA Minutes December 1, 1986 Page Three • create, one or more redevelopment projects, and one or more tax increment districts, on the Redevelopment Property within the City, and report back to the HRA as to such feasibility and ability. Motion for adoption of the resolution was seconded by Commissioner Bredesen, who commented that he viewed this proposed project as a private development and that because of the unique nature of the property the HRA should become involved in directing the project from the start. Rollcall: Ayes: Bredesen, Kelly, Richards, Turner, Courtney Resolution adopted. There being no further business on the HRA Agenda, motion of Commissioner Bredesen was seconded by Commissioner Richards for adjournment. Moti carried. Go don L. liuAhe Executive Dire or • i •