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04-13-10 HRA Agenda AMENDED AGE N D A GOLDEN VALLEY HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING April 13, 2010 - 6:30 PM Golden Valley City Hall 1. Roll Call 2. Approval of Minutes - March 9, 2010 - Special HRA Meeting 3. Reimbursement of City Expenditures City of Golden Valley TOTAL 433,480.84 $433.480.84 Bill Summary: General Fund 491.10 Valley Square - Capital Project Fund - Area B Tax Increment Fund o 426,577.27 Golden Hills - Capital Project Fund - Central Area Tax Increment Fund 445.69 4905.51 North Wirth - Capital Project Fund - District #3 1061.27 TOTAL $433,480.84 4. Receipt of March Financial Reports 5. Decertification of Valley Square Tax Increment Fund 6. Golden Hills Redevelopment Project (to be renamed 1-394 Corridor Development Area) A. Public Hearing on Amendment to Redevelopment Plan B. Adoption of Resolution Approving Revision of the Redevelopment for the Golden Hills Redevelopment Project and Renaming it The 1-394 Corridor Redevelopment Area: Resolution 10-4 7. Other Business GVEC Properties, LLC - Default 8. Adjournment This document is available in alternate formats upon a 72-hour request. Please call 763-593-8006 (TTY: to make a request. Examples of alternate formats clude large p aille, audiocassette, etc. SPECIAL MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY March 9, 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 March 9, 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 Robert Shaffer. Also present were HRA Director Thomas Burt, HRA Attorney Allen Barnard, Assistant HRA Director Jeanne Andre, Finance Director Sue Virnig and Administrative Assistant Christine Columbus. Approval of Minutes - Housin~ and Redevelopment Authority Meetin~ - January 12, 2010 Loomis requested the minutes be corrected to state Chair Pentel opened nominations for HRA Chair. MOVED by Loomis, seconded by Freiberg and motion carried unanimously to approve the Housing and Redevelopment Authority minutes of January 12, 2010 with above noted correction. Desi~nation of Global One Commercial as Developer of MnDOT Parcel 38 Joe Hogeboom, City Planner, provided background on the proposed designation of Global One Commercial as developer of a portion of the Golden Hills redevelopment area. He indicated that the proposed uses are permitted under the 1-394 mixed used zoning district, but acknowledged that the site plan is preliminary and the developer still has to address the issues of access, storm water and sanitary sewer issues, building and fire code requirements and soil conditions. Staff recommendation is to designate Global One Commercial in order to address these issues prior to a formal offer to purchase the property from MnDOT. Under state statutes, the land is either sold at auction or through the HRA for redevelopment purposes. The designation provided that the developer bear the costs related to studying these issues. Mark Globus from Global One Commercial presented the proposed for a six story 165- room hotel, one story branch bank and a six story 138-unit luxury apartments with underground parking and took questions from the Commissioners. Chair Pentel introduced the following resolution and Freiberg moved the following the following: Housing and Redevelopment Authority Special Meeting March 9, 2010 Page 2 of 2 RESOLUTION 10-03 RESOLUTION CONDITIONALLY DESIGNATING GLOBAL ONE COMMERCIAL AS DEVELOPER OF A PORTION OF THE GOLDEN HILLS REDEVELOPMENT AREA (MnDOT Parcel 38, East of the Golden Hills Shopping Center) The motion for the adoption of the foregoing resolution was seconded by Member Shaffer and upon a vote being taken thereon, the following voted in favor thereof: Freiberg, Shaffer and Pentel and the following voted against the same: Loomis, whereupon said resolution was declared duly passed and adopted, signed by the Chair and her signature attested by the Director. Adiournment The Chair adjourned the meeting at 6:51 pm. Paula Pentel, Chair ATTEST: Christine Columbus, Administrative Assistant 0:0' oGolden Valley Memorandum Housing & Redevelopment Authority 763-593-8002 I 763-593-8109 (fax) 7800 Golden Valley Rd. Golden Valley, MN 55427 763-593-8014 " Date: Apri/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 March 31,2010 the following expenditure amounts were owing to the City by the HRA: City Expenditures: Amount 1000 Best & Flanagan (Dec-Legal)* 283.95 99393 1000 Best & Flanagan (January Legal) ($181.25*)($363.30*) 1,035.65 100832 1000 Hennepin County Treasurer (2009 TIF fees) 6,758.06. 100389/ 1000 Hennepin County (Valley Square TIF c1osure)* 425,138.74 4034 1000 SEH (Global One deposit)* 264.44 98438 $433,480.84 HRA Expenditures: 9000 General Fund 9120 Valley Square Tax Increment Fund 9160 Golden Hills Tax Increment Fund 9250 North Wirth #3 9280 Golden Hills Capital Projects 491.10 426,577.27 4,905.51 1,061.27 445.69 $433,480.84 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. ~Colden Valley Memorandum Finance 763-593-8010 I 763-593-8109 (fax) Executive Summary for Action Housing and Redevelopment Authority Meeting April 13, 2010 Agenda Item 4. Receipt of March 2010 Financial Reports Prepared By Sue Virnig, Finance Director Summary Attached are the March 2010 Financial Reports for Council review. Staff will address questions from the Council before or at the meeting. Attachments HRA General Fund March 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 March 2010 HRA Financial Reports HRA of Golden Valley General Fund March 2010 Budget Report Percentage Of Year Completed 25% Over %Of 2010 Jan-Mar YTO (Under) Budget Revenue Budget Actual Actual Budget Received Transfer from TIF Funds: Golden Hills (3) 159,000 0.00 0.00 (159,000.00) 0.00% Interest Earnings (2) 0 0.00 0.00 0.00 Fund Balance 0 0.00 0.00 0.00 #DIV/O! Totals $159,000 0.00 0.00 (159,000.00) 0.00% Over % Of 2010 Jan - Mar YTO (Under) Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1) $6,000 491.10 491.10 (5,508.90) 8.19% Audit 12,000 0.00 0.00 (12,000.00) 0.00% City Overhead (2) 140,000 0.00 0.00 (140,000.00) 0.00% Miscellaneous 1,000 0.00 0.00 (1,000.00) 0.00% Totals $159,000 491.10 491.10 (158,508.90) 0.31% Notes: (1) Includes February to date billings from Best & Flanagan. (2) Transfers will be made in July 2010. City of Golden Valley - HRA - Tax Increment District Projections 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%) (869,4 70) (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) (546,877) (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 9280 Golden Hills Capital Project Funds 9220 Valley Square 9250 North Wirth #3 Cash Balance @ 10/01/09 Add: Receipts: Interest _12~~g_s_i! l~g~ pev~lgE-~__________.___ Increment on Deposit Less: Expenditures: City of Golden Valley (1) Transfer to TIF Cash Balance @ 03/31/10 $285,110.22 $285,110.22 (1) Breakdown on City Expenditures Memo $0.00 $0.00 $303.01 22,086.56 $22,389.57 c;;.;' oGolden Valley Memorandum Housing & Redevelopment Authority 763-593-8002/763-593-8109 (fax) 7800 Golden Valley Rd. Golden Valley, MN 55427 763-593-8014 Date: April 13, 2010 To: Housing and Redevelopment Authority Commissioners From: Sue Virnig, Finance Director Through: Thomas D. Burt, Director Subject: Decertification of Valley Square Tax Increment Fund Current Legislation requires Tax Increment Districts to close out their funds nine months after the receipt of their last increment. Now that the district has no activity, we are required to send back the excess increment to County for disbursement. The following payment will be made to Hennepin County: Hennepin County $425,138.74 Hennepin County will disseminate funds to the various taxing districts. Valley Square is in District #270. The City should receive an estimated $178,000. Of that amount, $5,735 was used to balance the 2010 General Fund budget. The remainder will be discussed in upcoming Council/Manager workshops. ~Golden Valley Memorandum Housing & Redevelopment Authority 763-593-8014/763-593-8109 (fax) Executive Summary for Action Housing and Redevelopment Authority Meeting April 13, 2010 Agenda Item 6. 1-394 Corridor Redevelopment Area Plan Prepared By Jeanne Andre, Assistant Director Summary In 1984 the Golden Valley Housing and Redevelopment Authority and City Council adopted the Golden Hills Redevelopment Area Plan. The area in the vicinity of Xenia and Highway 12 was identified for redevelopment due to the impending construction of 1-394. Since that time the redevelopment area has been amended to include the Xenia Avenue corridor and significant redevelopment has occurred in the original and expanded redevelopment area. In 2005 the City embarked on an extensive study of the 1-394 Corridor, including the original redevelopment area and parcels extending to Rhode Island Avenue in the west. This study led to the creation of a new mixed-use zoning designation that was applied to most of the study area. Although the study hoped to direct private redevelopment through this rezoning process, discussions at the HRA led to the recommendation that the Golden Hills Redevelopment Area be reviewed to consider its further amendment. By amending the redevelopment area the HRA would indicate its willingness to consider requests for tax- increment financing and to use this mechanism for needed public improvements related to such redevelopment, such as storm water ponding and street reconstruction. Staff reviewed the Golden Hills Redevelopment Area and is recommending that it be updated to document redevelopment that has already occurred and expanded to take in most of the 1-394 Corridor Study parcels. If the Plan is so expanded, staff also recommends that its title be amended to be the "Redevelopment Plan for the 1-394 Corridor Redevelopment Area". The process for the amendment includes consideration, after a public hearing, by the Housing and Redevelopment Authority. If approved by the HRA, the plan would then be directed to the Planning Commission to determine if it is compatible with the City's Comprehensive Plan, and then on to the City Council. The Council would also hold a public hearing prior to its consideration of the amended plan. Attachment Resolution Approving the Revision of the Redevelopment Plan for the Golden Hills Redevelopment Project and Renaming it the 1-394 Corridor Redevelopment Area (dated April 13, 2010) 20 pages Recommended Action Motion to adopt Resolution 10-04 Resolution Approving the Revision of the Redevelopment Plan for the Golden Hills Redevelopment Project and Renaming it the 1-394 Corridor Redevelopment Plan and forward the Plan to the Planning Commission and City Council for further consideration. 2 Resolution 10-04 April 13, 2010 Commissioner introduced the following and moved its adoption: RESOLUTION APPROVING REVISION OF THE REDEVELOPMENT PLAN FOR THE GOLDEN HILLS REDEVELOPMENT PROJECT AND RENAMING IT THE 1-394 CORRIDOR REDEVELOPMENT AREA NOW, THEREFORE, BE IT RESOLVED, by the HRA as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify the Redevelopment Plan (the "Plan") by updating actions taken to date to fulfill the Plan by expanding the area included in the Plan in keeping with the 1-394 Corridor Study, by outlining actions yet to be taken, and by renaming it the 1-394 Corridor Redevelopment Area pursuant to and in accordance with Minnesota Statutes. Sections 469.01 to 469.047, inclusive, as amended. 1.02. The Authority has investigated the facts and has caused to be prepared a proposed revision of the Plan (the "Revised Plan") for the 1-394 Corridor Redevelopment Area setting forth the information specified in Section 1.01. 1.03. The Authority hereby determines that it is necessary and in the best interest of the HRA at this time to adopt the Revised Plan (Attachment A), contingent upon its review by the Planning Commission, and to request that the City Council (the "Council") of the City hold a public hearing relating to the Revised Plan. Section 2. Approval of the Revised Redevelopment Plan 2.01. The Revised Plan presented to the Authority on this date is hereby approved and adopted and attached hereto as Attachment A. 2.02. The Revised Plan as approved and adopted by the Authority on this date, shall be forwarded to the Council with the request that the Council hold a public hearing relating to the adoption for the Revised Plan and that said Revised Plan shall be placed on file in the office of the City Clerk. Paula Pentel, Chair ATTEST: Thomas D. Burt, Director Motion for the adoption of the foregoing resolution was seconded by ; and upon a vote taken thereon, the following voted in favor thereof the following voted against the same: whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Director. Attachment A 1-394 Corridor Redevelopment Plan (Amended and Expanded Golden Hills Redevelopment Plan) Section 1. Introduction In 1984 the City adopted the Golden Hills Redevelopment Plan. The Project Area originally covered 93.72 acres of commercial and industrial properties centered near the anticipated intersection of Xenia Avenue and the to-be-constructed 1-394. It had a westerly boundary of Colorado Avenue and a northerly boundary on Laurel Avenue. In 1999 the Project Area was expanded to take in property north of Laurel Avenue along a corridor that extended Xenia Avenue northward and incorporated the new Davis Community Center. (See Map A outlining stages of the Golden Hills Redevelopment Plan.) In 2007 the City completed the 1-394 Corridor Study, which included most of the Golden Hills Redevelopment Area and the largely industrial property extending west to Rhode Island Avenue South. This amendment is to expand the Golden Hills Redevelopment Project Area to include parts of the Study Area and rename the Golden Hills Redevelopment Plan the 1-394 Corridor Redevelopment Plan. Exhibit A: 1-394 Corridor Redeve opment Area Location and Extent i.!r~", or- .(tfl ~Iil ~d.. P:J '1'_ ~;..~",?1 J. :l.,..~- ~ '! ,~:f:.&11 '1 ~ I I ~-';~ ~,...-..j! . i! ) ~ "'~tl1i' i~a-':""h~ C I ~ I ~ f'! ~ .I,~ _~, ( , ~:-.",..,.:, ~~._. -.. I. il ~i ._ I ~ ;)~ I(] I ~v(~~~1.~,;' ~",~...; J j f....;.~l · ~....- l.'i~~" i -- - I ~~;pol)6.Ll -no . ;i'i ..\1' ~ .\" ,,,-V .'~ <i' ~ ...:.. T :I ~ '!II' ~ .. ~ B')V I: Il'~ :.\ " \~ '1'i,' ~ If _~ a' i ~. . .~", ,::.:~~_( I.!~i' 1. ~",,;~~.i:.n~" . ~~-~~ I .y Ip i":'" I..J. ,~~ l't ~i-:.- ~"/ ~~-{j" ...!~ ", [fll '-..... I... j"' . ~ ._Gr~I:" :-\1 _ ,~J~.' IP .~ ". . \: ~ II. ,!' ;~ r\~ fi; f ~I~ If: ~ lI-!\\~V I~~ .~"1 ~ lff~Tit;0' \ i j. N". '~.. -=:".. '\I-!. ~ i r- r ! ~ I 'l1' .~v .? vnJ IL ._.~ /.ljj!jl~l. =. I. ~"""Jj~~'~ \\'"'\\ ;1' ~..:. ~ '~,'" fft. ( ~ - ~J1 V v I l';' \\~ J ~ .j,t'!.;/ l.) ~ , I ".. _~. ~I ;:{. t"I' '~. ~ -~< :' ~ ~ I~~ : ,J~~~r '" . c:::'i' i ; I ~.I:::-:'. .< .... ll,...)~ ~:: 1'tI: ~ l' I ....../-~.;::- \ 'l . !,,.,,.:, !~4-~'P ',.uIAl , ~~~U)\ ~J~ ~::::.~- \ ~:'::~~J?~f}'J.~LJl"'~!J..~:\! ':t '\17 '~... If R, ""'~~ ~ -- ~~ .. '... .-....... lit I ...... I (.1 I ""l ; ..;....... L k .~. !":-- f'= " ,~," .... ............. :I>! I ,.' I.V::~' !' ~ ~ I c~~ "i,: -~!J~ ~l ~~ ~I {I~;~:~- ~.. ", 1: ~..., ~ :,. ,. I : I E I ...II 'f." , '\' "I ~; ,~,. 'Xema Ave i ! l,.j ,;:r::.- I ~'~ ~ I 1~1lJ~ ~- ~' ~:ft"':' I' ;.:; .EXlensl:n~t ~~ l~'-"-=. . r"'V" ~. Jj . 'i' }... \ L.; ~ ~....---,!J!" ""'_"... ...""- t --....I~'.~. - f. /J :;- ~ " -....., , -.. ~ - ~~ ~ 'I" t Louisiana I )U1".n Ronda .~. ""l"'(.nrnl "7, ',Jtf'I. ~1~'.! West ~ " rll'l'L ~~ ; SOUI~ Q:!b'~ I I .J , . .T.. 1 Section 2. Statement of Need and Public Purpose, Statutory Authorization The Authority finds that there is a need for development within the City and the Project Area in order to provide employment and housing opportunities, to improve the local tax base, and to improve the general economy of the City and the State. The economic security of the people in the City depends upon proper development of property that meets anyone of a number of conditions, including properties whose values are too low to pay for the public services required or rendered and properties whose lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The Authority finds that in many cases such property cannot be developed without public participation and assistance in various forms including property acquisition and/or write- down, proper planning, the financing of development costs associated with clearance, grading and soils correction, and the making of various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone, the Authority believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The Authority finds that in certain cases property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that this Redevelopment Plan conforms to the general plan for the development of the City as a whole. It is the intention of the Governing Body, notwithstanding the enumeration of specific goals and objectives in the Redevelopment Plan, that the Authority shall have and enjoy with respect to the Project Area the full range of powers and duties conferred upon the Authority pursuant to the HRA Act, the TIF Act, municipal housing and redevelopment authority laws, and such other legal authority as the Authority may have or enjoy from time to time. The HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes, Sections 469.001 to 469.047, or other law. Section 3. Background One of the reasons for establishing the Golden Hills redevelopment area was to provide a means for addressing issues and opportunities arising in connection with plans to upgrade old Trunk Highway 12 (now 1-394) to interstate highway status. The City's first step was to enact a construction moratorium along the entire Highway 12 corridor from September 1979 to September 1980 while waiting for the final 1-394 design plans. Following a period of background research and documentation, Golden Valley's 1982 comprehensive plan update identified part of the highway corridor as a "study area" due to "signs of deterioration within the area and potential for redevelopment in conjunction 2 with anticipated upgrading of Highway 12 to 1-394." Another moratorium from April 1984 to April 1985 allowed the HRA to establish the Golden Hills redevelopment area, Golden Hills TIF district, and related plan documents for both. The original Golden Hills redevelopment plan examined then-existing land use conditions, determined appropriate long-term land use categories, and established more specific redevelopment uses that corresponded to the land use categories. The original Golden Hills plan anticipated programming of redevelopment activities over a period of five to ten years. A real estate market decline in the late 1980s and circulation disruptions while the new interstate highway was under construction significantly slowed redevelopment. The need for improved north/south access into and through Golden Hills to accommodate and facilitate the full extent of redevelopment activity contemplated in the plan was the impetus for adding the Xenia Avenue Extension Area to the Project Area in 1999. The existence of excess railroad right-of-way located just north of the Golden Hills Central Area offered an opportunity to provide improved access to the redeveloped areas. The 1-394 Corridor Study area was identified as susceptible to land use change due to its location along 1-394, its proximity to other major freeways, and its direct access to Downtown Minneapolis. Based on Study recommendations the City Council, effective December 1, 2008, adopted the new 1-394 Mixed Use Zoning District. The City Council also re-guided the Comprehensive Plan to incorporate this change in land use. As this area has significant development in place, the change in land use will only happen through redevelopment. Section 4. Guiding Principals As part of thel-394 Study process, guiding principals were adopted and approved. The principles are concise statements that establish the direction and intention of the study. They were adopted by the City Council in December 2005. These principles have been modified for the Golden Hills Redevelopment Plan to guide future redevelopment along the 1-394 Corridor. 1. Enable the corridor to evolve toward a diverse mix of land uses, including residential as well as commercial and industrial. A mix of activities, uses, and densities will help sustain the corridor through changing economic cycles, consumer preferences, and housing trends. Mixed uses can create synergies and increase the level of pedestrian activity. Active uses (such as retail) at ground floor level can help to create activity after working hours. At the same time, the corridor should complement, not compete with, the Hwy 55/Winnetka district, the City's civic downtown. 2. Maximize integration rather than separation of land uses, where appropriate. Many land uses can benefit from increased integration with one another, including neighborhood- serving retail, multi-family and senior housing, offices, and low-impact services. Existing non-conforming land uses, such as auto-oriented commercial or industrial uses, can benefit from integration with newly permitted uses. Redevelopment is subject to design guidelines, as specified by the Zoning District. 3. Maintain the corridor as an employment center. Jobs within the corridor help maintain Golden Valley's jobs-housing balance while sustaining commercial enterprises. Fostering 'living wage' jobs should be a priority in redevelopment projects. 3 4. Improve the visual coherence and attractiveness of the corridor. Improvements in streetscapes, landscaped areas, open spaces, building aesthetics, and parking/service areas all contribute to a more unified and visually appealing environment, with an increased sense of identity. Buildings and other private improvements should make positive contributions to the district and the broader public realm, while public improvements should set the standard for private investment. 5. Improve connectivity for all modes. The development of 1-394 and subsequent road realignments have resulted in a discontinuous and confusing circulation system. Improvements in east-west vehicular circulation and north-south pedestrian circulation are most needed; however, roadways should be designed to be attractive and safe for all modes of travel. Xenia Avenue, Golden Hills Drive, Turners Crossroad, Laurel Avenue, Louisiana Avenue, and Laurel Avenue are to be preserved as primary arterial traffic corridors. 6. Foster neighborhood-serving retail and services. Commercial development should include a variety of small independent businesses and larger enterprises that serve City residents, supplementing and broadening the current mix of commercial uses. 7. Maintain or improve the functioning of intersections and highway interchanges. The functioning of the 1-394 interchanges at Xenia and Louisiana Aves, and other key intersections within the corridor, is critical to maintaining commercial viability and neighborhood quality of life. New development must be carefully planned, evaluated, and designed so that interchanges and intersections continue to function at an adequate level. 8. Foster sustainable development and work to establish a balance between urban and natural systems. Encourage the application of green building and infrastructure techniques. Examples include low-impact development that maintains the natural functions of the land, reduces storm water runoff, and fosters resource conservation and the use of renewable systems in new construction. 9. Implementing and facilitating all modes of transportation. In recent years, traffic congestion on Interstate 394 has become increasingly worse. New development along the corridor must emphasize the usage of mass transportation, car pooling, and non-motorized transportation. In addition, aspects of active living must be considered in developments. Section 5. Redevelopment Plan Components The 1-394 Corridor Redevelopment Project Area is divided for planning purposes into nine sub-areas (Exhibit B), five from the Golden Hills Redevelopment Plan and four new ones. Included in the originally-established boundaries are the West Area, the Central Area, the East Area, and the South Area. The Xenia Avenue Extension Area was added in 1999. The four new areas are the Florida Avenue, Louisiana East, Louisiana West and the Rhode Island Areas. The following pages describe each sub-area in turn, outlining land use characteristics and summarizing planned and completed redevelopment activities. A substantial amount of additional documentation on initial property conditions can be found in the original Golden Hills plan and in other records maintained by the HRA. 4 fa QI a- ct .... c:: QI E a. o - QI > QI "'C QI a:: '- o "'C .- a- '- o U lIl:t 0\ M I - .. CD .... .- .a .- .c >< LU ~ +-' g Ion i', J ~Jj a: S'd3Nllm-/ l ~ o.;>l9- ::%: ro ~,. I l:i c f~ ^V '3^" '" .... U .- I- .... '" .- -C ..Q ~ '" \f)ll~"NII\ ..1 5 +-' VI Q,) 5 co "'0 "~ o LL. co c ro+-' Ion "~ ro ::JW o -.J ro c rotl " Vi OJ "55 o -.J -0 C ro VI OJ -0 o ...c cc West Area f .". ~ -YVf\'LAi~A- - -- land Use This sub-area has been redeveloped to include a 109 unit Holiday Inn Express hotel and 253,549 sq. ft. of office warehouse space. Under the new 1-394 Mixed Use Zoning District these parcels could be developed to incorporate a wide range of uses, including: . Multiple Family Residential . Elderly and Handicapped Housing . Commercial . Medical Clinics . Institutional Boundaries and Size Bounded on the west by Colorado Avenue, on the south by the adjusted city Iimits/l-394 fence line, on the east by the 800 Line railroad, and on the north by Laurel Avenue. Approximately 31.7 acres in size. 6 Central Area ~:: J.... " ;;" - I 1'< i -, \1 ..- ,( , \ , . 1 , .5..../( Bt\ID -~ , iJ'c land Use This sub-area includes the Colonnade office tower (409,000 sq. ft.) The Golden Hills business center (190,758 sq. ft.) and the Allianz world headquarters (600,000 sq. ft.). Sites available for redevelopment include a 2 acre site adjacent to the Colonnade, zoned through PUD for a 250 unit suite-hotel. At the northwest corner of Xenia and Golden Hills Drive, two blighted buildings have been proposed for removal and replacement with 230,000 sq. ft. of office with 15,000 sq. ft. of retail and a parking deck. Boundaries and Size Bounded on the west by the Soo Line railroad, on the south by the adjusted city limits/I- 394 fence line, on the east by Turners Crossroad, and on the north by Laurel Avenue. Approximately 42.7 acres in size. 7 East Area }- ~ -----......... '-...., A --d land Use There has been little redevelopment activity in this sub-area to date. Some private redevelopment has occurred. In 2001, the nursing home at the southeast corner of Circle Down and Turners Crossroad was converted to office use and in 2004, portions of the Golden Hills Shopping Center were demolished. The remaining portion of the shopping center is now fully occupied by restaurant uses. A vacant 4.5 acre site east of the shopping center is owned by MnDOT. It has been declared excess property and is available for redevelopment. Since the construction of Interstate 394, traffic and roadway alignment in this area has been an issue. In the future, traffic movement in the area could be evaluated to see if alternative roadway alignments could improve neighborhood circulation and access. Boundaries and Size Bounded on the west by Turners Crossroad, on the south by the city limits/I-394 fence line, on the east by the Highway 100/1-394 interchange, and on the north by a row of single family lots lining the south side of Circle Down. The area also includes several parcels south of Radisson Road, east of Turners Crossroad, and west of the alignment of Toledo Avenue South. Approximately 9.6 acres in size. 8 South Area land Use This sub-area constitutes one end of a large redevelopment site that spans the Golden Valley/St. Louis Park city limits. The property owner's long-range plans include expansion of its office park. The buildings in this sub-area have been demolished and the property owner/developer has proposed the construction of a parking deck to support the office uses. Boundaries and Size Bounded on the west and south by the city limits and on the east and north by the Highway 100/1-394 interchange. Approximately 7.1 acres in size. 9 Xenia Avenue Extension Area . ',',,--' ,< -,. .< ",. ',", -'c"""'-' . ~ ,- '~; .~:.;,: :';"'.:>' -'., ~;:~i.: :!" . '.-_~~:i-Ju. '.~-':< land Use This new sub-area of Golden Hills, as its name implies, provided for the extension of Xenia Avenue northward from Laurel Avenue to a new terminus at Turners Crossroad north of Glenwood Avenue. The street extension alleviated a hazardous intersection at Glenwood Avenue and Turners Crossroad and simplified the poorly-defined north/south access route between Central Area and the rest of Golden Valley. Boundaries and Size Bounded on the west by a westerly branch of the 800 Line Railroad, on the south by Laurel Avenue, on the east by Turners Crossroad, and on the north by Glenwood Avenue and an easterly branch of the 800 Line Railroad. Approximately 38.3 acres in size. 10 Florida Avenue Area l~ ~ land Use This sub-area currently includes office, light manufacturing, and restaurant uses. It is focused around Florida Avenue, and is guided to have mixed-use development. More intense land uses would be preferred along the southerly section of the area, adjacent to Wayzata Boulevard. Boundaries and Size Bounded on the west by Hampshire Avenue South, on the south by Wayzata Boulevard, on the east by Colorado Avenue South, and on the north by Laurel Avenue. Approximately 40.2 acres in size. 11 Louisiana East Area .1 .!'" :"'-0_,1: }Jt-i:4-'l]':". I ,I I ",{ ~~ ,~, ..t.t4- . (7 : land Use This sub-area includes office, retail, light industrial, automotive service, and restaurant uses. This area is guided to have mixed use development. More intense land uses would be preferred along the southerly section of the area, adjacent to Wayzata Boulevard. The area includes the easterly section of the Louisiana Avenue interchange with Interstate 394. Boundaries and Size Bounded on the west by Louisiana Avenue South, on the south by Wayzata Boulevard and Interstate 394, on the east by Hampshire Avenue South, and on the north by Laurel Avenue. Approximately 27.9 acres in size. 12 Louisiana West Area land Use This sub-area includes office, light industrial, automotive sales and service, and restaurant uses. This area is guided to have mixed use development. More intense land uses would be preferred along the southerly section of the area, adjacent to Wayzata Boulevard, and along the eastern section of the area, adjacent to Louisiana Avenue. Boundaries and Size Bounded on the west by Pennsylvania Avenue South, on the south by Wayzata Boulevard and Interstate 394, on the east by Louisiana Avenue South, and on the north by Laurel Avenue. Approximately 32.7 acres in size. 13 Rhode Island Area ,I land Use This sub-area includes office, light industrial, and automotive-related uses. The area is guided to have mixed use development. The area is directly adjacent to a single family residential neighborhood. Therefore, less intense land uses are desired for this location. Boundaries and Size Bounded on the west by Rhode Island Avenue South, on the south by Wayzata Boulevard, on the east by Pennsylvania Avenue South, and on the north by Laurel Avenue. Approximately 16.8 acres in size. 14 Section 6. land Use Traditionally, the 1-394 Corridor has been comprised of primarily industrial, commercial, and office uses. The transition of the corridor to mixed uses requires that individual land uses work to complement one another and enhance the cohesiveness of the area. Standards have been developed for individual land uses to increase their ability to coexist among other land use designations within the corridor. 1. Housing Housing, in a variety of configurations (multi-story multifamily buildings, the upper floors of mixed-use buildings, attached single-family units such as townhouses) and including rental and owner-occupied (condominium or cooperative), will be incorporated in the Project Area. An emphasis on Iifecycle housing will be emphasized in the corridor. Current Development: No housing exists within the Amended Golden Hills Redevelopment Area. 2. Commercial retail and service uses The Project Area will include commercial retail and other service uses that are integrated into mixed or multi-use developments, gradually moving away from the current pattern of small free-standing convenience retail. A grocery store is also encouraged as a medium-sized freestanding retail facility that would meet neighborhood needs. Current Development: Commercial uses within the proposed 1-394 Redevelopment Area currently include fast-food and casual dining restaurants, big-box retailers, a gas station, auto dealerships, and several independent retailers and service providers. 3. Business and professional office uses. Office uses often have significant traffic impacts. The 1-394 Mixed Use Zoning District will typically require traffic analyses and subsequent traffic management plans to minimize traffic congestion. Current Development: Several large-scale office buildings exist in the Project Area. They are typically part of a Planned Unit Development (PUD). Professional offices also currently exist as components of existing business operations. 4. Open space. The development plan does not identify any sites for new public parks or plazas, but large developments would be encouraged to provide improved open space as part of their composition. Plazas and open space available to the public will be encouraged in private developments. Enhanced streetscape treatments along major streets will also enhance the area's appearance. Current Development: No public open space exists in the proposed 1-394 Redevelopment Area. However, the Laurel Avenue Greenbelt exists to the north of the area, and serves as an important buffer between the Project Area, and the less intense land uses in the R-1 Residential Zoning District. 15 5. Existing industrial uses. No industrial uses are planned for the Project Area. Current Development: A number of large industrial facilities, automotive sales and service facilities are located in the Project Area. These uses could remain in the area indefinitely, but the City will consider redevelopment or reuse proposals for sites that may be ready for more intense and market-responsive uses. Section 7. Goals, Objectives, and Policies To achieve its mission of structured redevelopment, the Golden Hills Redevelopment Plan has instituted goals, objectives, and policies. These items, listed below, encourage cohesive planning and structured redevelopment within the Project Area. Goal 1 - Community Enhancement Objectives · Increased jobs and tax base. · Visually attractive development. · Recognizable features which reflect Golden Valley and enhance community identity. · Job and tax-based growth at environmentally sustainable levels. Policies The City will study planned land uses in the Project Area after all zoning changes are in place, to determine the need or desirability of area-wide plan amendments accommodating altered land use demand. Goal 2 - High Quality Development Objectives · High quality new developments that are visually attractive and respect their surroundings. · Development that meets environmental criteria set forth by Leadership in Energy and Environmental Design (LEED) and the United States Department of Energy. · Use of environmentally sustainable 'green building' practices when possible. · Development that meets criteria for active living. Policies The City will assure that its review processes, zoning, and building regulations are designed to promote desired development projects. The City will establish a list of qualifying criteria to serve as a selection standard for targeting Community Development Block Grant or other redevelopment funds. 16 The City will review existing properties to consider their long term viability and/or options for alternative use. The City will consider various approaches and/or incentives to promote a Project Area beautification program. This program could include public and private components. Goal 3 - Redevelopment of Obsolete Properties Objectives · Redevelopment of parcels that are blighted, functionally obsolete, economically unsustainable, or incompatible with adjacent uses. Policies The City will assure that new uses in the redevelopment area are compatible with existing development and the City's land use plan. The City may consider providing public subsidy to those redevelopment projects that serve a substantial public purpose, remove blight, or mitigate contamination. Goal 4 - Protection of the Environment Objectives · Preserve and enhance wetlands · Prevent and correct soil and wetland contamination · Preserve and cultivate arborous environments · Restore native vegetation where appropriate · Maintain existing natural features · Reduce light in the night sky · Co-locate higher density uses with commercial services to reduce the amount of auto travel and corresponding air pollution Policies The City will remain a leader in urban environmental protection by promoting area parks and open space, and setting development standards that uphold environmental guidelines. The City will continue to explore Sustainable Development research, for possible incorporation into future updates of this plan. Goal 5 - Maintain a Regional Framework Objectives · Implement Metropolitan Council growth and development policies when appropriate. · Take advantage of State and County funding. 17 · Maintain a positive relationship with surrounding communities and governmental agencies. · Continue to support traffic management plans. Policies Accommodate mixed use developments and increase land use density where appropriate in accordance with the Metro Council's regional growth strategy. Monitor need for additional transit opportunities and encourage the development of local and regional transit opportunities within the Project Area. 18 i alley Memorandum Housing & Redevelopment Authority 763-593-8014/763-593-8109 (fax) Executive Summary for Action Housing and Redevelopment Authority Meeting April 13, 2010 Agenda Item 7. GVEC Properties, LLC - Default Prepared By Jeanne Andre, Assistant Director Summary GVEC is in default of the GVEC Properties, LLC Private Development Agreement with the Golden Valley Housing and Redevelopment Authority (HRA). Non-payment of taxes on the parcels owned by GVEC constitutes a default under Sections 4.7 and 9.1 of the agreement. The First Amendment to the Agreement revised the completion schedule for Phases II and III of the project and provided that no interest would be paid on the increment until 27,000 sq. ft. of improvements had been constructed, with a deadline of December 31,2011. Although the developer has not paid real estate taxes on its property, there have been tax receipts for some of the purchased parcels. The result of the Amendment is that taxes received from owners of the sold parcels have been held by the HRA pending completion of the scheduled improvements. Non-payment of taxes constitutes a default under terms of Article IX the agreement, subject to the rights of a Holder of a First Mortgage, which has been approved by the HRA pursuant to Section 7.1. A notice of default was sent out in December of 2009. The developer has 60 days to cure a default, but as of April 12, the taxes had not been paid. The HRA should discuss whether it wants to pursue any of the options provided in the agreement in case of default. Available options listed in the agreement include: (a) The HRA may suspend its performance under this Agreement until it receives assurances from Developer, deemed adequate by the HRA, that Developer will cure its default and continue its performance under this Agreement. (b) The HRA may initiate such action, including legal or administrative action, as is necessary for the HRA to secure performance of any provision of this Agreement or recover any amounts due under this Agreement from Developer or under any security provided by Developer. (c) Sue for damages, provided that any damages shall be reduced to the extent of any amount recovered by the HRA under any security provided by Developer. The First Amendment to the agreement already provides that interest will not be paid on the outstanding note while the developer is in default, and the staff has suspended payment of any increment while the taxes are in default. The HRA Attorney has recommended that legal fees related to the default be deducted from the available increment prior to payout to the developer. At this time, legal fees related to the default exceed $1000. Since it is the economy that has created this situation, and GVEC is a limited liability corporation, it may be counterproductive to sue for performance. The Commissioners can discuss the situation and direct staff on how to proceed. Some options are: 1. Continue to suspend performance by the HRA under the Agreement, which stops payment of increment while taxes are outstanding, and review the situation at the next quarterly HRA meeting. 2. Resume payment of increment, even though it is not required under the agreement. 3. Direct that the developer be sued for damages. Recommended Action Discuss actions the HRA should take in response to the GVEC Properties, LLC, default.