06-15-2020 HRA and CC Work Session AgendaH R A/C C W O R K S E S S IO N W O R K S E S S IO N
V IR T U AL ME E TIN G H E L D V IA W E B E X
J U N E 15, 2020
5:45 P M
C all to order
Open forum (15 minutes maximum)
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the C ouncil on items on the agenda. I ndividuals who wish to address the
C ouncil must have registered prior to the meeting.
1.Redevelopment status update provided by staff and developers.
A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9738.
AGENDA SECTION:Work Session Items
AGENDA ITEM #1.
STAFF RE P ORT NO. 16
WORK SESSION
6/15/2020
RE P O RT P RE PA RE D B Y: John S tark, E xecutive D irector
D E PA RTME NT D IRE C TO R RE V IE W: John S tark, E xecutive D irector
6/11/2020
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W:
I T E M F O R WO RK S E S S IO N:
Redevelopment status update provided by staff and developers.
E X E C UT IV E S UM M ARY:
There are several redevelopment projects in various stages of planning or construction, staff and the
developers of these projects would like to update the City Council and Housing and Redevelopment
Authority (HRA) on the following projects: The Emi; 6501 Penn Avenue South, and; RF64. The
Enclave Development is continuing to work on their proposal for redevelopment of the corner of 65th
Street and Lyndale Avenue South and we expect to have a work session with them in J uly.
The updates will touch on the following topics for each of these projects:
The Emi - 101 66th St East
Approved as mixed use project with 31 market-rate apartments and 6,000 square feet of first floor
commercial space in 2018.
One year extension of land use approvals granted in J une 2019, additional six month extension granted
in May 2020.
Developer Paul Lynch is interested in exploring providing affordable units or contributing to the Housing
and Redevelopment Fund in exchange for Tax I ncrement Financing.
Additional minor modifications to the project, to reduce the amount of first floor commercial space will
also be discussed.
6501 Penn Avenue South (former Bumper-to-Bumper site)
I n February, staff presented two possible affordability concepts to the HRA.
1. 20% of the units affordable at 50% of the Area Median I ncome (A MI ).
2. 100% of the units income restricted, including some units with deeper affordability and
supportive services.
Both models present significant gaps; however, the concept of deeper affordability offers greater
sources for filling that gap but also lengthens the time before redevelopment is likely to happen. A
straight affordable project does, however, place limits on the amount of funding that can be spent on
architectural and design fees, which would preclude the involvement of the Locus architectural team, as
they are not affordable housing specialists.
Four members were present at the meeting and were split in their response to the concepts. The HRA
urged staff to consider community input on the issue of deeper affordability, given past response to
100% income-restricted developments. Staff was in the beginning stages of planning "community
conversations" on the issue of affordability when the pandemic hit and the Stay-at-Home order was
issued. Staff is considering how to engage the community in these conversations given the fact that the
need for social distancing is likely to continue for several months.
The project has been awarded a $50,000 Livable Communities Pre-Development Grant.
I ssues of project phasing, transition to the neighborhood, and financial feasibility still need to be
explored, and getting a clear vision on the affordability concept from policymakers will help the project
to move forward.
RF64
Construction on the first eight townhomes is nearing completion. One unit has closed and purchase
agreements have been signed with four additional buyers. A model is now open, and a time for
policymakers to tour that unit will be offered at the end of J une. Utility work has begun on the next 16
townhomes. Some minor exterior changes and slight adjustments to the exterior dimensions have been
proposed for the next units (staff-level approvals).
Closing on the apartments was to have occurred at the end of March but was delayed due to C OV I D-
19 related closures. The final plat has been submitted and is under review by the attorneys. A public
hearing on the plat is expected on J uly 14, after which closing can occur.
The development team is exploring a change to the unit mix, reducing the number of larger bedroom
units for more, smaller units. This will require an amendment to the planned unit development, which is
expected sometime this summer.
These changes, plus the delay in construction start, has an impact on the tax increment generated by
the project. A review of those impacts is underway, and a request to amend the Development
Agreement is also expected.
W ith regards to the 127-unit Lund's apartment proposal, an update at the meeting is not planned, as there
have been no changes to the proposal and the developer plans to be underway late this summer.
D IRE C T I O N NE E D E D:
Generally, provide staff and developers with feedback on the progress of projects.
Specifically, provide staff and the development team further clarity on the amount and level of
subsidization/affordability desired for the 6501 Penn Avenue South (former Bumper-to-Bumper)
site.
B AC K G RO UND INF O RM AT I O N:
A.H IS TOR IC AL C ON T E X T
These projects have all been presented to policy makers at various times over the past 30 months.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
N/A
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
N/A
ALTE R N AT IV E(S):
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Representatives of: - P HL Development - NHH Development - Boisclair Properties