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03-13-12 Special HRA Minutes HOUSING AND REDEVELOPMENT AUTHORITY Special Meeting March 13, 2012 Pursuant to due call and notice thereof, a regular meeting of the Housing and Redevelapment Authority of the City of Golden Valley, Hennepin County, Minnesota, was held at 7800 Golden Valley Road in said City on March 13, 2012 at 6:30 pm, in the City Council Chambers. The following members were present: Chair Paula Pentel and Commissioners Joanie Clausen, Shep Harris and DeDe Scanlon. Also present were HRA Director Thomas Burt, Assistant HRA Director Jeanne Andre, Finance Director Sue Virnig and Administrative Assistant Lisa Wittman. Commissioner Mike Freiberg was absent. North Wirth Redevelopment Area Approval of Second Amendment and Assignment - GVEC Properties, LLC Private Development Agreement Andre explained that that GVEC development project had been in default under the GVEC Private Development agreement due to non-payment of taxes and is under threat of foreclosure for default an loan payments. As of December 21, 2011, the developer further defaulted by not meeting construction deadlines for Phases II and III of the project, as established in the First Amendment to the Development Agreement. She stated that the mortgage holder, Bank Mutual, is seeking to take over this property by securing a deed in lieu of foreclosure in order to secure ongoing tax-increment financing support for the praject. She explained that this proposed second amendment to the Development Agreement would allow the following: Bank Mutual will take ownership of the property and market it to a developer while continuing to keep current on the taxes, the new Phases II �nd III construction deadline will be December 31, 2Q13, The HRA must approve any prospective buyer/developer and such developer will assume all of the obligations in the Development Agreement and the Tax Increment Note will continue to exist, with no further interest accrued. Harris asked about the reasons leading to default. Andre stated that the developer wasn't able to sell the units and speculated that the economy might have been a factor. Pentel asked if new units will need to be built in the same style as the existing units. Andre stated that would be discussed with any future developer of the property. Harris asked if Bank Mutual has a certain type of developer in mind. Andre said she didn't know but explained that it could be something different from what was proposed or built in the past. MOVED by Clausen, seconded by Scanlon and motion carried unanimously to approve the Second Amendment and Assignment of GVEC Properties, LLC Private Development Agreement and authorize the Chair and Executive Director to sign documents associated with said agreement. Housing and Redevelopment Authority March 13, 2012 Page 2 Amending Golden Hills Redevelopment Plan (to be renamed I-394 Corridor Development Plan) A. Public Hearing - Amendment to Redevelopment Plan B. Adoption of Resolution Approving Revision of the Redevelopment Plan for the Golden Hills Redevelopment Project and Renaming it the I-394 Corridor Redevelopment Plan - Resolution 12-3 Andre gave a brief history of the Golden Hills Redevelopment Plan and explained that the goal of this current propasal is to amend the existing redevelopment plan to incorporate changes implemented 2008 and to expand the geographic area in the Plan to better correspond to the I-394 Mixed Use Zoning District. Pentel asked Andre to explain the importance of adopting an updated redevelopment plan. Andre stated that redevelopment plans allow the City and private developers to have a clear view of what is possible and what is desirable in certain areas. Pentel added that adopting a redevelopment plan in no way requires the City to use Tax Increment Financing. Andre stated that a detailed financing plan is done if and when a project comes forward or if there is a public improvement that needs bonding. Harris asked if the City is taking advantage of promoting this plan to the development community. Andre stated that the City usually only promotes a redevelopment project through a Request for Proposals (RFP) if the HRA controls the land. In this area, the HRA doesn't control any of the land. Pentel opened the public hearing. Seeing and hearing no one wishing to comment, Pentel closed the public hearing. Commissioner Harris introduced the resolution and moved its adoption: RESOLUTION 12-03 RESOLUTION APPROVING REVISION OF THE REDEVELOPMENT PLAN FOR THE GOLDEN HILLS REDEVELOPMENT PROJECT AND RENAMING IT THE 1-394 CORRIDOR REDEVELOPMENT PLAN The motion for the foregoing resolution was seconded by Commissioner Scanlon, and upon a roll call vote being taken thereon, the following voted in favor thereof: Clausen, Harris, Scanlon and Pentel; and the following was absent: Freiberg; and the following voted against the same: none; whereupon said resolution was adopted, signed by the Chair and her signature attested by the Director. The meeting was adjourned at 6:52 pm. Housing and Redevelopment Authority March 13, 2012 Page 3 Paula Pentel, Chair ATTEST: Lisa Wittman, Administrative Assistant ,