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HomeMy WebLinkAboutCity Council - 07/20/1999 - HRA APPROVED MINUTES HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY,JULY 20, 1999 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Jean Harris, Sherry Butcher- Younghans,Ronald Case,Ross Thorfmnson,Jr.,Nancy Tyra-Lukens, CITY COUNCIL STAFF: City Manager Chris Enger,Parks & Recreation Services Director Bob Lambert, Public Safety Director Jim Clark,Public Works Services Director Eugene Dietz, Community Development and Financial Services Director Don Uram,Management Services Director Natalie Swaggert, City Attorney Roger Pauly and Council Recorder Margaret Rasmussen I. ROLL CALL/CALL THE HOUSING AND REDEVELOPMENT AUTHORITY MEETING TO ORDER Mayor Harris called the meeting to order at 7:00 p.m. Thorfinnson was absent when the meeting began. H. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Enger added Item N.C., approval of the additional set of minutes for the meeting of the Housing and Redevelopment Authority, dated July 6, 1999. MOTION: Tyra-Lukens moved, seconded by Case, to approve the Agenda as published and amended. Motion carried 4-0. IV. MINUTES A. HOUSING AND REDEVELOPMENT AUTHORITY MEETING HELD TUESDAY,JULY 6, 1999 MOTION: Butcher-Younghans moved, seconded by Tyra-Lukens, to approve the minutes of the Housing and Redevelopment Authority Meeting held Tuesday, July 6, 1999, as published. Motion carried 4-0. 40 Thorfinnson arrived at the meeting at 7:10 p.m. HRA MINUTES July 20, 1999 Page 2 • V. PUBLIC HEARINGS/MEETINGS A. ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 15,EDEN SHORES SENIOR HOUSING PROJECT (Resolution HRA 99-2) Eden Shores Senior Housing Project is located east of Highway 212 at Fountain Place. City Council approved land use for this project at its meeting on July 20, 1999. Enger said notice of this public hearing was published on July 8, 1999, in the Eden Prairie News. Chris Kimmel, Project Manager with Springsted, Inc., the City's financial advisors, gave an overview of the TIF plan for this project. The developer is requesting TIF financing to lower rents on 20 percent of the units, and write-down land acquisition costs. Springsted has studied the proposal and determined that public assistance is needed for the project to be financially feasible. The amount of TIF financing needed would be $4,625,000. Approximately $2.2 million will be used to subsidize rents. In addition, TIF budgeting includes 10 percent for the City's administrative costs. There is a projected increase in market value of$14.7 million. The total TIF generated over 15 years would be $10.5 million, and the • project will utilize about 75 percent of the TIF generated. This proposed plan meets all State TIF requirements and is consistent with the City's Comprehensive Plan and recommendations of the Senior Advisory Task Force. Mayor Harris inquired if any member of the audience wished to address the Council with regard to establishment of this Tax Increment Financing District. No one did. MOTION: Tyra-Lukens moved, seconded by Thorfinnson, to close the public hearing and adopt TIF and Project Plan as per Resolution No. HRA 99-2. Motion carried 5-0. B. ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 16,LINCOLN PARC APARTMENT PROJECT(Resolution HRA 99-3) Enger said the City Council has approved a land use request for the Lincoln Parc apartment project. Official notice of this public hearing was published on July 8, 1999,in the Eden Prairie News. The purpose for establishing the proposed TIF District is to help finance the construction of about 104 (55%) moderate-cost rental units and 38 (20%) lower- cost units within the 180-unit Lincoln Parc apartment proposal on the City's site near the water tower on Eden Road. The Planning Commission found the use of • TIF for this project to be consistent with the goals of the City's Comprehensive Plan at the June 28, 1999 meeting. HRA MINUTES July 20, 1999 Page 3 Jack Bratt, Hartford Financial Services, explained that when the Lincoln Pare proposal was approved by the City Council recently, it was requested that approval for the development provide a substantial housing component. The site has approximately 20,000 square feet of retail and office space. Hartford Financial is proposing to construct 180 rental apartment units on the site and to subsidize 142 units for 15 years through TIF. Of the 142 affordable units, 38 will be affordable to persons with incomes below 50 percent of the median income for the metro area. The other 104 units will be affordable to persons with incomes below 80 percent of the area median. The expected cost to lower rents on these units over a 15-year period will be about$5,242,000. Case inquired if it would be better for the City to find an older building in an existing TIF district than building a new building and establishing a new TIF district. Enger responded it is very difficult to provide affordable new construction units. There were a couple of instances where the City encouraged rehabbing of older units. Thorfinnson said the City is buying down a certain amount of rent, so $500-$600 will cost the same to buy down whether it is for new construction or existing building. Mayor Harris added that an older building would probably not meet • existing standards required by the Americans with Disabilities Act and would have to be remodeled. Mayor Harris inquired if anyone would like to address the Council on this proposal. No one did. MOTION: Thorfinnson moved, seconded by Tyra-Lukens, to close the public hearing; and adopt Resolution No. HRA 99-3 adopting the Project Plan for Redevelopment Project Area No. 5 in the City of Eden Prairie and the Tax Increment Financing Plan for Tax Increment Financing (Qualified Housing) District No. 16. Motion carried 5-0. VI. ADJOURNMENT MOTION: Case moved, Tyra-Lukens seconded, to close the HRA meeting. Motion carried 5-0. Approval of Minutes—August 3, 1999 (Please Initial) Mayor Jean Harris Sherry Butcher-Younghans Ronald Case Ross Thorfinnson,Jr. Nancy Tyra-Lukens