08-19-13 Special HRA/CC Worksession HOUSING AND REDEVELOPMENT
AUTHORITY MINUTES
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Special Concurrent HRA and
City Council and Worksession
August 19, 2013
CALL TO ORDER
The meeting was called to order by HRA Chair Sandahl and Mayor Goettel at 6:04 p.m. in the
Bartholomew Conference Room.
ROLL CALL
HRA Members Sue Sandahl, Chair; Steven J. Quam; Doris Rubenstein; Debbie Goettel; and
Present: David Gepner (arrived 6:44 p.m.)
Council Members Debbie Goettel, Mayor; Pat Elliott, and Sue Sandahl.
Present:
Council Members Edwina Garcia and Tom Fitzhenry.
Absent:
Staff Present: Steven L. Devich, City Manager/Executive Director; John Stark, Community
Development Director; Christine Costello; Economic Development
Coordinator; and Cheryl Krumholz, Executive Coordinator.
Item # 1 DISCUSSION REGARDING CEDAR POINT HOUSING REDEVELOPMENT AREA
(HRA MEMO NO. 39 AND COUNCIL MEMO NO. 71)
Community Development Director Stark provided the background related to the Cedar Point
Redevelopment Area that included development of higher-density residential housing in the two
blocks known as the Phase II Housing Redevelopment Area. He continued that the main impetus of
the plan was and is to convert single-family land uses and structures that are incompatible with noise
generated by the MSP Airport.
Community Development Director Stark explained the Request for Qualifications (RFQ) and
Request for Proposal (RFP) process and distribution to developers. He stated that staff received one
formal proposal from Sherman Associates for the development of senior housing and office/retail
which will be built in a later phase.
Since the closing of the process, staff has been made aware of another developer who was
not included in the distribution process and requested an opportunity to submit a proposal. The
development was advised that they could submit a proposal but nothing has been received to date.
Special Worksession Minutes -2- August 19, 2013
Economic Development Coordinator Costello discussed the noise mitigation consent decree
to which the City and the Metropolitan Airports Commission jointly agreed.
Andy Hughes, Sherman Associates, explained the limitations of the site for redevelopment
and that a market study indicated a strong demand for senior housing. He added that market rate
housing is not an option for this site because it is better suited for transitional housing. He stated
Sherman Associates is interested in continuing to work with the City.
Mr. Hughes stated that the proposal presented this evening is the exact same as that
presented to the HRA on June 17, 2013. Sherman Associates believes this is the best fit for the site.
HRA Commissioner/Mayor Goettel questioned the lack of mixed use and expressed concern
regarding the shadow impacts from the height of the buildings. She continued that she had hoped for
something different than senior housing.
HRA Commissioner Rubenstein expressed agreement with Commissioner Goettel that there
is no difference from the proposal in June.
HRA Commissioner Quam questioned the sound attenuation differences in the proposed
100% affordable versus 55+ market rate housing.
Mr. Hughes explained that senior housing demands are more internal and affordable housing
provides opportunities for other income sources needed to assist with funding gaps.
HRA Commissioner/Mayor Goettel and HRA Commissioner Rubenstein requested staff seek
other developers for new proposals and that the Housing Visioning Task Force values and concepts
be included.
Council Member Elliott stated that there needs to be a realistic approach with the airport so
close to the site.
HRA Commissioner Gepner arrived at 6:44 p.m.
Executive Director/City Manager Devich explained the original use for the proposed site. He
reminded the HRA and Council of the HRA's financial obligation on the assessments.
HRA Chair/Council Member Sandahl stated multi-family housing made sense and suggested
market rate be included.
HRA Commissioner Quam stated he believed the 100% affordable housing was the biggest
issue.
Community Development Director Stark explained the next step would be the HRA to formally
consider an exclusive rights agreement for Sherman Associates.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:00 p.m.
Date Approved: September 16, 2013.
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F'F` `' . Sandahl 1.1 ri idyiv
Cheryl Kr mh• z I L. Devi h
Executive Coordinator Exe• tive Director