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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) ~ l~ ~~. ,- I ~., I f-J~. /.. i 1i , t ~ fi..~, ,.;:-;, .:.~,. . ~. i"""-' l~ ,," .'. ~~.:....,," ..:.~ . ... 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