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HomeMy WebLinkAbout04-24-1997 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting April 24, 1997 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. Call to Order: The meeting was called to order at 7:35 a.m. by Chairperson, Dan Nelson. 2. Roll Call: Members present were as follows: Cindy Carlson, Rosemary Goff, Dan Nelson, Ron Schmidt, Brian Sjoberg and Delane Welsch. Member Bev Tarhark was absent. Dir. of Economic Development Cathy Bennett was present. EDA Liaison Duane McCarty and Alternate Liaison Gary Quick were absent 3. Approval Of Minutes: Motion/Second: Goff/Schmidt moved approval of Minutes from March 27, 1997. Motion Carried 5 ayes 0 nays 4. Special Business No Special Business. 5. EDC BUSINESS A. Discussion of Revised Housing Replacement Program Bennett explained the amendments to the Housing Replacement Program. Staff restructured language to make the program clearer to the reader and a section was added to allow the granting of demolition funds for a home owners wanting to replace their existing home with a newer higher valued home. Commissioners felt that the addition of the demolition provision would be just as effective in achieving the goals of the program and would also save the City money. Motion/Second: Carlson/Sjoberg moved approval of amendments to the Housing Replacement Program. Motion Carried 6 ayes 0 nays B. Discussion of Proposals for City Owned Property on Highway 10 located in Section 9 of the Highway 10 Redevelopment Plan Bennett explained that MSP Real Estate, the developers of the Silver Lake Pointe Senior Apartments, are interested in the rehabilitation of Red Oak Apartments and the construction on 26 new townhomes at the corner of Eastwood and Highway 10. The City EDA owns approximately .6 acres located on the corner of Highway 10 and Eastwood. All of the units are proposed as affordable housing. MSP is applying for TIF assistance, MHFA Tax Credits, Ramsey County Home Funds and Minneapolis Public Housing Assistance through the Holman Decree. Bennett asked the EDC to review how the project impacts the City=s goal for commercial development in the area and a desire for no new rental housing. Chairman Nelson noted concerns with additional rental housing in Mounds View. He would like to see owner occupied units along with the rehabilitation of Red Oak. Jeff Huggett explained that they looked at the financial feasibility of owner occupied units in the area and that they could sell for an estimated $85,000 per unit but that with the huge financial burden of the rehab and the loss of holman funds and tax credits on the for sale units that they would need an estimated $30,000 per unit subsidy for the project. Nelson noted that the rehab is very needed as those apartments have been deteriorating for many years. He supports the rehab but stressed strong management of the units. If the City assists in the financing he would like to see City approval for management changes written into the development assistance agreement. Commissioner Carlson noted that the SRF study recommended that the best use for the property was housing rather than commercial development due to the access. She understands that this would not be a great location to develop for- sale units. Carlson noted that this plan has merit but that there needs to be fine tuning. In addition, Carlson felt that the financing structure needs to be reviewed more closely. She felt that there was too much subsidy and not enough equity in the project and that the developer fee was too high. Therefore she could recommend that the use is appropriate but the financing needs work. Commissioner Goff would like to explore other commercial options and wondered if staff had more information regarding the commercial interest. Bennett noted that she spoke to the owner of Mounds View Animal Hospital. They are interested in the site but access off of Highway 10 is critical. They are also looking at building on the South side of 10 next to TJB Homes. Bennett contacted the owner of a funeral home in Minneapolis who had an interest in the property but has not heard back from them. Both potential commercial users were only interested in the City property. Commissioner Sjoberg asked MSP why they were interested in this site. Jeff Huggett explained that they were contacted by SRF Consulting since they are the owner of Silver Lake Pointe Apts. In evaluating the purposes of the study they felt that since they have expertise in improving distressed properties and they already own property in the area that this would be a good project to pursue. They have an interest in improving Mounds View to keep their existing investment healthy. This is a complicated financing deal with a lot of risk but they have the expertise to make it work and be successful. They have a waiting list at Silver Lake Pointe Apts. and believe they can capture part of that market with the rehab and the construction of the new units. Commissioner Welsch supports the concept. He believes that there is a larger gap between lower and higher incomes these days and that affordable housing can be very nice and respectable. There is more and more of a demand for this housing as the gap continues to increase. He would like to see assurances that if the new housing is approved that the rehab also continues and that it would not be allowed to deteriorate. Motion/Second: Carlson/Welsch moved to support the general concept of the development as it pertains to the rehabilitation of Red Oak Apartments and the construction of 26 new townhomes but that there is a lack of financial information and analysis to support a recommendation for tax increment financing assistance at this time. Motion Carried 6 ayes 0 nays Staff was directed to provide more financial information and analysis and more information regarding the management company. C. Update on the U of M Metropolitan Livable Communities Design Center Course. Community Development Director Pam Sheldon gave a brief update regarding the two classes. The first class presented an overview of course objectives and each community=s focus issue. We learned that our perceived challenges with regards to a plan for Highway 10 can be overcome. Sheldon described the second class which focused on Highway 10's function as a transit corridor. An expert transportation planner, Robert Kulash, described the tunnel vision of traffic engineers regarding the movement of traffic rather than looking at enhancing the drive along a highway and ways to encourage lower speed without even changing the speed limit. She noted that there were many excellent opportunities for change along Highway 10 and that they are achievable. The goal should be to change Highway 10 from to a vehicle moving road to a boulevard area that vehicles move through. The next class will be held again at City Hall and a representative from the Design Center will bring a concept that would help the community to move forward on a plan for the Highway 10 Corridor. 6. Reports From Chair, Commissioners and Staff: No Reports 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:34 a.m. Respectfully Submitted, 2 Director of Economic Development