07-13-10 HRA Agenda Packet
AGENDA
GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING
July 13, 2010 - 6:30 PM
Golden Valley City Hall
1. Roll Call
2.A Approval of Agenda
2.B Approval of Minutes - April 13, 2010 -HRA Meeting
3. Reimbursement of City Expenditures
City of Golden Valley
TOTAL
$156,559.10
Bill Summary:
General Fund
153,556.10
Valley Square -
Capital Project Fund - Area B
Tax Increment Fund
Golden Hills -
Capital Project Fund - Central Area
Tax Increment Fund
864.90
North Wirth -
Capital Project Fund - District #3
2138.10
TOTAL
4. Receipt of June Financial Reports
5. 1-394 Redevelopment Area Plan - continued to the October 12,
2010 HRA Meeting
6. GVEC Properties, LLC Default
7. Adjourn to Special Workshop on Golden Hills East Area Master
Planning
8. Access Options for MnDOT Property Located East of Turner's
Crossroads and north of Interstate 394; and Alternative for Circle
Down Re-alignment
9. Adjourn
HOUSING AND REDEVELOPMENT AUTHORITY
April 13, 2010
Pursuant to due call and notice thereof, a regular meeting of the Housing and
Redevelopment Authority of the City of Golden Valley, Hennepin County, Minnesota, was
held at 7800 Golden Valley Road in said City on April 13, 2010 at 6:30 pm, in the City
Council Chambers.
The following members were present: Chair Paula Pentel and Commissioners Mike
Freiberg, Linda Loomis, and DeDe Scanlon. Also present were HRA Director Thomas Burt,
HRA Attorney Allen Barnard, Assistant HRA Director Jea ndre, Finance Director Sue
Virnig and Administrative Assistant Christine Columbu
Reimbursement of
nimously to approve the
LC - Default.
Approval of Aaenda
MOVED by Freiberg, seconded by Scanlon
agenda of April 13, 2010 as amended: Ad
A roval of Minutes - S
March 9. 2010
otion carried unanimously to authorize the
4 for expenditures incurred.
Recei
is and motion carried unanimously to receive and
s.
Tax Increment Fund
MOVED by Loomis, se
Decertification of Valley
y Scanlon and motion carried unanimously to
e Tax Increment Fund.
Public Hearina on Amendment to Redevelopment Plan
Assistant HRA Director Jeanne Andre provided a short presentation on the Golden Hills
Redevelopment Area and the desire to update the document to include areas that have
already been redeveloped and for the area to be expanded to include parcels in the 1-394
Corridor Study. She explained the process for amending the Plan, which includes review
by the Planning Commission and consideration by the City council, after another public
hearing.
Housing and Redevelopment Authority Special Meeting
April 13, 2010
Page 2 of 2
Commissioners reviewed the document and suggested possible revisions; Chair Pentel
opened the meeting for public input and persons present to do so were afforded the
opportunity to express their views. Hearing and seeing no one, Chair Pentel closed the
public hearing.
Director Burt, suggested that the Plan be held over for staff to address the suggested
revisions.
Revision of the
g the project,
. brought
e changes
Ado tion of Golden Hills Redevelo
Development Area)
Member Loomis moved for continuation of the R
Redevelopment for the Golden Hills Redevelop
seconded by Freiberg and motion carried un
back to the HRA Commission after the PI
suggested by the commissioners.
Imously to suspend
rope s, LLC, Private
/while taxes are outstanding,
Adiournment
Paula Pentel, Chair
alley
Memorandum
Housing & Redevelopment
Authority
763-593-8002/763-593-8109 (fax)
7800 Golden Valley Rd. Golden Valley, MN 55427
763-593-8014
Date: June 13, 2010
To: Housing and Redevelopment Authority Commissioners
From: Sue Virnig, Finance Director
Through: Thomas D. Burt, Director
Subject: Reimbursement of City Expenditures for the HRA
As of June 30, 2010 the following expenditure amounts were owing to the City by the HRA:
City Expenditures: Amount
1000 Best & Flanagan (February-Legal)* 1,688.10
1000 Best & Flanagan (March Legal) (150.00*) 1,558.30
1000 Best & Flanagan (April Legal) (414.70*) 787.50
1000 Best & Flanagan (May Legal) (300.20*) 525.20
City of Golden Valley (Overhead Transfer) 152,000.00
$156,559.10
101242
101573
101940
102381
4036
HRA Expenditures:
9000 General Fund
9250 North Wirth #3
9280 Golden Hills Capital Projects
153,556.10
2,138.10
864.90
$156,559.10
This reimbursement should be approved by the HRA as part of the normal bill paying
process. Those noted with an asterisk are coming from deposit accounts paid by the
Developer. The legal fees for North Wirth will be paid from increment.
alley
Memorandum
Finance
763-593-8010/763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Meeting
July 13, 2010
Agenda Item
4. Receipt of June 2010 Financial Reports
Prepared By
Sue Virnig, Finance Director
Summary
Attached are the June 2010 Financial Reports for Council review. Staff will address questions
from the Council before or at the meeting.
Attachments
HRA General Fund June 2010 Budget Report (1 page)
HRA Tax Increment District Projections for Golden Hills Tax Increment Funds (1 page)
HRA 2010 Capital Project Funds Report (1 page)
Recommended Action
Receive and file the June 2010 HRA Financial Reports
HRA of Golden Valley
General Fund
June 2010 Budget Report
Percentage Of Year Completed 25%
Over %Of
2010 April-June YTD (Under) Budget
Revenue Budget Actual Actual Budget Received
Transfer from TIF Funds:
Golden Hills (3) 159,000 159,000.00 159,000.00 0.00 100.00%
Interest Earnings (2) 0 0.00 0.00 0.00
Fund Balance 0 0.00 0.00 0.00 #DIV/O!
Totals $159,000 159,000.00 159,000.00 0.00 100.00%
Over %Of
2010 April-June YTD (Under) Budget
Expenditures Budget Actual Actual Budget Expended
Legal Services (1) $6,000 1,556.10 2,047.20 (3,952.80) 34.12%
Audit 12,000 12,000.00 12,000.00 0.00 100.00%
City Overhead (2) 140,000 140,000.00 140,000.00 0.00 100.00%
Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00%
Totals $159,000 153,556.10 154,047.20 (4,952.80) 96.89%
Notes:
(1) Includes May to date billings from Best & Flanagan.
(2) Transfers will be made in July 2010 for June.
City of Golden Valley - HRA - Tax Increment District Proiections
Golden Hills Tax Increment Fund:
(Includes Tax Increment Fund and Debt Service)
2010 2011 2012 2013 2014 2015
Projected Cash Ba!. @1/1 $5,783,117 $7,027,546 $7,918,867 $9,931,228 $10,906,073 $9,913,076
Plus:
Estimated Tax Increment 4,292,682 3,908,578 3,908,578 3,908,578 3,908,578
Interest Earnings (.05% of Beg. Ba!.) 28,916 35,138 39,594 51,642 56,712
Less:
Transfer to HRA General Fund (159,000) (159,000) (159,000) (159,000) (159,000)
Debt Service:
1999 C Tax Incr. Bonds (5.09%) (869,470) (866,970)
2004 A Tax Incr. Refunding Bonds (2.27%) (226,287) (231,187)
2005 B Taxable Tax Incr. Refunding Bonds (4.69%) (411,841) (412,766) (407,991) (402,710) (1,759,910) (1,686,475)
2005 A Tax Increment Refunding Bonds (3.50%) (116,071) (123,971 ) (126,571) (128,915) (546,871) (533,282)
2006 A Taxable Tax Incr. Refunding Bonds (5.12%) (1,294,500) (1,258,500) (1,242,250) (2,294,750) (2,492,500) (2,950,500)
Projected Cash Bal. @ 12/31 $7,027,546 $7,918,867 $9,931,228 $10,906,073 $9,913,076 $4,742,819
Bond Principal & Interest Outstanding @ 12/31 $17.466.125 $14,572,731 $12,795,919 $9,969,544 $5,170,257 $0
Delinquencies are $128,527.23 at 12/31/09
HRA Of Golden Valley
2010 Financial Report
Capital Project Funds
9280 9250
Go~en North
Hills Wirth #3
Cash Balance @ 4/01/10
$285,110,22
$21,742,32
Add:
Receipts:
Interest
Deposit from Developer
Increment on Deposit
Less:
Expenditures:
City of Golden Valley (1)
Transfer to TIF
(2,138,10)
Cash Balance @ 06/30/10
$285,110,22
$19,604,22
(1) Breakdown on City Expenditures Memo
Memorandum
Housing & Redevelopment
Authority
763-593-8014/763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Workshop Meeting
July 13, 2010
Agenda Item
5. 1-394 Corridor Redevelopment Area Plan
Prepared By
Jeanne Andre, Assistant Director
Summary
At its April 13 meeting the Housing and Redevelopment Authority held a hearing on the
proposed 1-394 Corridor Redevelopment Area Plan. After the public hearing the
Commissioners recommended a number of changes to the Plan, so final consideration was
delayed to allow staff to include the changes. The consideration of the Plan was continued to
the July 13 meeting.
Recent discussions related to the 3-9-4 project have caused staff to reconsider parts of the
Plan related to the East Area. A workshop session of the HRA has been called to discuss
master planning for the East Area, which could impact the proposed redevelopment
opportunities in the Plan. Therefore staff is recommending that consideration of the 1-394
Corridor Redevelopment Area Plan be continued until the October 12 meeting.
Recommended Action
Motion to continue consideration of the 1-394 Corridor Redevelopment Area Plan to the
October 12 meeting.
alley
Memorandum
Housing & Redevelopment
Authority
763-593-8014/763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Workshop Meeting
July 13, 2010
Agenda Item
6. GVEC Properties LLC Default
Prepared By
Jeanne Andre, Assistant Director
Summary
The Housing and Redevelopment Authority (HRA) has a development agreement with GVEC
Properties LLC under which the developer is in default if tax payments are not current. Taxes
on the development are in arrears and under the agreement the HRA has discontinued
payments on the note until the developers taxes are up to date. The HRA has asked for an
update on the developer's performance.
In a June 21 letter a representative of the developer has indicated that some of the partners
are seeking a SBA loan to purchase two of the units. The partners are hopeful that the loan
will be approved in July and closing on the units can occur in August. The bank has first
position on the proceeds, but the developer expects that the bank will pay outstanding taxes
to avoid foreclosure by Hennepin County. The developer has no plan to pay taxes other than
through the sale of these or other available units in the development.
alley
Memorandum
Housing & Redevelopment
Authority
763-593-8014/ 763-593-8109 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Workshop Meeting
July 13, 2010
Agenda Item
7. Golden Hills East Area Master Planning
Prepared By
Jeanne Andre, Assistant Director
Summary
The Minnesota Department of Transportation (MnDOT) has a parcel of land available for sale
and development in the northwest quadrant of 1-394 and Highway 100. The Golden Valley
Housing and Redevelopment Authority has been asked to be the intermediary in the sale of
this property. In the past the HRA Commissioners have indicated that the HRA should be
involved because the development of this parcel will have significant impact on the adjacent
residential and commercial uses and area traffic. Based on these issues the City has a
vested interest in guiding development to complement the uses already in place. In working
with a developer proposing to build multifamily, hotel and retail/office uses in the area, staff
has been challenged to identify appropriate access to the MnDOT parcel.
MnDOT has suggested that an alley enhanced to 25 feet in width would provide reasonable
access. Staff and HRA Commissioners have expressed a concern that this access is not
suitable for the necessary roadway, utility and maintenance required for development of the
subject property. The developer has in good faith approached two adjacent property owners
to discuss collaborating on developing a new and improved street access. Neither property
owner was receptive.
HRA Staff determined that Master Planning for the area would help address current and
longer term traffic concerns. Staff has done some schematic work to identify possible
approaches to providing improved street access to the MnDOT parcel and help protect the
residential neighborhood from the commercial traffic. Staff would like to present this work to
the HRA Commissioners to get informal feedback on whether to pursue this approach. The
work is being done on a short timeline, and will be ready to present at the meeting.
Staff is approaching this issue as a master planning project. This approach is suggested
because, independent of the Global One proposal, there are ongoing concerns related to the
amount and peak hours of traffic that can travel on Golden Hills Drive and utilize the Golden
Hills DrivelXenia Avenue intersection and concern for the impact of any development on the
adjacent residential neighborhoods. The MnDOT lot will not remain vacant forever, so master
planning by the City and HRA would be prudent. In addition, as acquisition of land for a new
road would be likely to involve eminent domain, Council and citizen support for a selected
approach should be ascertained early in the process
alley
emora um
Public Works
763-593-8030 I 763-593-3988 (fax)
Executive Summary for Action
Housing and Redevelopment Authority Workshop Meeting
July 13, 2010
Agenda Item
8. Access Options for MnDOT Property Located East of Turner's Crossroads and north of
Interstate 394; and Alternative for Circle Down Re-alignment
Prepared By
Jeannine Clancy, Director of Public Works
Jeff Oliver, City Engineer
Mitchell Hoeft, Graduate Engineer
Summary
Staff has been working with representatives of Global One regarding the proposed
redevelopment of the MnDOT property located north of Interstate 394 and east of Turners
Crossroads for several months. The largest obstacle to redevelopment of this parcel, both at
this time and in the past, has been providing adequate access. There is currently an 18 foot
wide alley easement adjacent to a 10 foot wide strip owned in fee by the State that provides
access to the site. The total width of the alley and easement is insufficient to construct a
street and provide for maintenance.
In addition to access to the MnDOT property described above, issues have also been
identified regarding the Circle Down neighborhood and the ease of ingress and egress after
development of the MnDOT parcel and other planned redevelopment in the Golden Hills area
takes place.
Based upon these access concerns, staff has prepared alternative routes to provide access
to the MnDOT property. Each of these alternatives is illustrated on the attached exhibits. A
brief description of each alternative and the issues associated with each is as follows.
Alternative 1
Alternative 1, which could be constructed in coordination with either Alternative 2a or 2b,
involves removing the cul-de-sac along Turners Crossroad south of Laurel Avenue and
connecting Turners to Circle Down; while continuing the existing curve from Turners
Crossroad to Golden Hills Drive. Alternative 1 effectively separates existing and future
commercial traffic from existing residential traffic from Circle Down. The residential traffic
would be routed to the north on Turners Crossroad to Laurel Avenue to access their homes.
This alternative would require the purchase ot a minimum ot two properties to complete the
connection. These properties are 721 Turners Crossroad South and 5420 Circle Down. This
design would also create non-contorming tront yard setbacks at 5410 Circle Down.
There would be minor utility work associated with this alternative. Staff anticipates minor
storm sewer improvementslrelocation with this design.
The estimated cost to complete this alternative is between $700,000 and $1,000,000. The
estimated cost includes a 10% construction contingency and an estimated 30% indirect
costs. The estimated costs do not include the cost for right-of-way or easement
acquisition or demolition of buildings.
Alternative 2a
Alternate 2a involves a new alignment which would be constructed through the north portion
ot the existing parking lot at 5410 Wayzata Boulevard (Golden Hills Shopping Center). This
design would allow traffic access to the MnDOT owned property trom Turners Crossroad
South. No additional traffic associated with the redevelopment ot 5410 Wayzata Boulevard
would be directed toward Circle Down.
This alternate would require acquisition ot approximately 40,000 square teet ot property tor
new right-ot-way. A turn back ot approximately 17,000 square teet ot existing right-ot-way to
the property owner ot 5410 Wayzata Boulevard is also possible with this alternative. The pink
highlighted corridor presented on the Alternative 2a diagram shows the proposed acquisition
and the blue highlighted area shows the area that could be vacated and turned back to the
adjacent property owner. This alternate will likely result in parking lot restoration needs at
5410 Wayzata Boulevard.
There would be utility work associated with this alternative. Storm sewer installation would be
required. Sanitary sewer and water would also likely need to be relocated in the new right-ot-
way.
The estimated cost range to complete this alternative is between $900,000 and $1,200,000,
which includes 10% tor contingencies and 30% tor indirect costs. The estimated cost does
not include restoration or reconstruction ot the existing parking lot, which is estimated to be
between $300,000 and $600,000. This estimate does not include right-of-way
acquisition.
Alternative 2b
Alternate 2b involves construction ot a new street that connects trom Circle Down and
proceeds southward to the MnDOT owned property but requires right ot way acquisition trom
the apartment property on the south side ot Circle Down. Traffic associated with the
redevelopment ot 5410 Wayzata Boulevard would be directed toward Circle Down.
The required right-ot-way acquisition is approximately 25,000 square teet. There is an
estimated turn back ot 17,000 square teet ot existing easement and right-ot-way to the
property owner ot 5410 Wayzata Boulevard. The pink highlighted corridor presented on the
Alternative 2b diagram shows the proposed right-ot-way that would be acquired. The blue
highlighted area shows the area that could be vacated and turned over to the property owner
ot 5410 Wayzata.
There would be utility work associated with this alternative. Storm sewer installation would be
required and would likely be comparable to the amount required tor Alternate 2a. Sanitary
sewer and water would also likely need to be relocated in the new platted right-ot-way. The
City ot Golden Valley would need to either abandon or remove the existing sanitary sewer
and watermain located in the current right-ot-way. More than likely, these existing utilities
would need to be removed causing additional parking lot disturbances.
The estimated cost to complete this alternative is between $800,000 and $1,100,000. This
estimate does not include right-ot-way acquisition. It does include a 10% contingency as
well as a 30% indirect cost tee. No parking lot reconstruction costs are associated into this
tigure.
Attachments
Alternative Circle Down Re-alignment Diagrams (3 pages)
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