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HomeMy WebLinkAboutHRA MINUTES 042619940 10 "as] aLl LM3►OW. iW" HOUSING AND REDEVELOPMENT AUTHORITY MINUTES APRIL 26, 1994 I. CALL TO ORDER The meeting was called to order by Chair Ranallo at 7:45 P.M.. IL ROLL CALL Present: Chair Ranallo, Vice Chair Enrooth, Secretary/Treasurer Marks and Commissioners Fleming and Wagner. Staff Present: Interim City Manager Hamer, City Attorney Soth, Finance Director Larson. III. APPROVAL OF APRIL 26. 1994 H.R.A. AGENDA • Motion by Marks, second by Fleming to approve the H.R.A. Agenda for April 26, 1994. Motion carried unanimously IV. APPROVAL OF MARCH 22, 1994 H.R.A. MINUTES. Motion by Fleming, second by Marks to approve the H.R.A. minutes of March 22, 1994, as presented. There were no changes. Motion carried unanimously V. PRESENTATION OF CLAIMS A. PINK - $2,382.87. Motion by Enrooth, second by Marks, to approve payment to PINK for $2,382.87. Motion carried unanimously VI. DISCUSSION OF A TAX INCREMENT FINANCING DISTRICT. Bob Thistle from Springsted, Inc. was present for this discussion. • Chair Ranallo stated Mako is the corporation proposing to sell property owned by them for redevelopment. Housing and Redevelopment Authority Minutes • April 26, 1994 Page 2 Don and Judy Makowske, were present representing Mako for the discussion of Tax Increment Financing being used as funding for this proposed project. Mr. Thistle presented a report on the request for tax increment financing which he distributed to those present. He stated that this is just a preliminary stage in the process. There has been one brief meeting with the developers and staff. Springsted's initial analysis raised as many questions as it answered. Mr. Thistle said more time is needed with the developers to clarify the proposals. At this point, there does not appear to be anything that would prevent the project from working. One of the issues that was discussed with the developers at the first meeting was pay-as-you-go on tax increments. Because this is a condominium project, a pay -as you -go is complicated. Mr. Thistle stated he is not sure that realistically pay-as-you-go would be very workable. The problem is that on a pay-as-you-go, the person paying the taxes is the person getting the benefits. He wondered how the benefit would be separated in a situation with a condominium where there would be potentially 24 tax payers and any one of them didn't pay. Mr. Thistle indicated something other than pay-as-you-go may have to be considered on this project. Mr. Thistle said he had had a brief conversation with Jerry Gilligan from Dorsey & Whitney and they agreed that the developers could have a new project set up or the existing Kenzie • Terrace TIF Project could be extended to this location. In addition, 25% of the project's proceeds are allowed to be spent outside of the District. The City has a policy of requiring the developers to put some money up front to defray the City's costs in case the project is not completed. Mr. Thistle suggested that some of those issues should be pursued. Chair Ranallo inquired if Mr. Thistle thinks the condominiums will sell in that area considering the problems involved when selling the condominiums at the Kenzington. Judy Makowske responded that condominiums are just one possibility that they are considering. Mrs. Makowske is of the opinion that townhomes would be better for the City and that they could be constructed in the proposed location. The developer would make that decision. Mako is not doing the developing themselves. Mrs. Makowske stated two parcels of their property have been repossessed and are owned by Mako, Inc. The other parcel is owned by Harry and Elaine Olson. There are three parcels of properties plus the alleys. The total amount of land that is just under two acres. She stated that the Makowske's interest is that they sold the land in 1981 and do not want to run apartments at this point in their lives. They want to sell the property to a developer or someone who would upgrade the property. Chair Ranallo questioned how they would come up with up front money without a developer. Mrs. Makowske anticipates having a developer and stated that Mako has been working with a • person who will get a developer when it is known what the land can be used for. Housing and Redevelopment Authority Minutes • April 26, 1994 Page 3 Chair Ranallo asked the City Attorney how to proceed. City Attorney Soth stated the best way to do this would be to continue meeting with the real estate people and housing people can explore some of those options. He prefers the townhouse option. Commissioner Enrooth noted the profit and risk at $13,524 per unit is more than double the amount the City is used to seeing on a project. Bob Thistle stated that Springsted tends to see a range of what is taken out as profit. They break those all down from the developer's perspective and arrive at a preliminary impact. When Chair Ranallo inquired about extending the Kenzie TIF District, Mr. Thistle responded that that was Mr. Gilligan's forte, but the potential would be there. Up to 25% could be taken out of that District and applied somewhere else. Mr. Thistle indicated he is not sure what is available. The City Attorney stated that generally when a law is enacted, the starting date is August 1st. • Judy Makowske indicated she is concerned whether the City would be willing to look at whether or not they would rezone before the actual project is done. Project developers aren't going to be interested in it unless they know what they can do with the property. The property is zoned R2, two family residential, and a zoning of R4, multifamily would be needed. Mako would like to be able to move on that fairly quickly so the property would be available for this type of usage. City Attorney Soth stated one question for the Planning Commission or for the staff would be if rezoning that property would be consistent with the comprehensive plan. He suggested that on an informal basis, the Planning Commission could have a concept review and see if rezoning that property makes sense. Chair Ranallo suggested that if the Council approves the concept review, then the plan would be presented to the Planning Commission. He asked Mrs. Makowske to present the Council with a concept review to rezone the property to R4 so that the developer could be told that Mako has a tentative approval, pending justification and a public hearing. Chair Ranallo asked Mr. Thistle to work with Mr. Soth and Mr. Gilligan and to develop a plan for the Planning Commission's next meeting. The City Attorney suggested the Council ought to request some offset funds for costs. Chair Ranallo stated they would ask the developer to put $2,000 up front in an escrow account and the City would keep track of it and when the $2,000 is spent, the City would • contact the developer. Housing and Redevelopment Authority Minutes is April 26, 1994 Page 4 Motion by Ranallo, second by Fleming to approve proceeding with the Mako request and to request the developer put up $2,000 as escrow money to be spent for whatever expenses the City incurs. Motion carried unanimously Interim City Manager Hamer stated he was contacted by an architect who has been working on the Lowry Grove Mobile Home Trailer Park and who asked to speak to the H.R.A. tonight. Keith Sjoquist from Sjoquist Architects, stated his company is interested in the Lowry Grove site for developing housing and other uses. They are interested in pursuing it and are investigating the project. The architects are now in the beginning negotiating stages with the owner. VI. ADJOURNMENT Motion by Marks, second by Enrooth to adjourn the H.R.A. meeting at 8:15 P.M. is Respectfully submitted, H.R.A. Secretary E Motion carried unanimously