2018-01-23 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
MOUND HOUSING & REDEVELOPMENT AUTHORITY
REGULAR MEETING
TUESDAY, JANUARY 23, 2018 6:55 P.M.
MOUND CITY COUNCIL CHAMBERS
Page
1. Opening the meeting
2. Action approving agenda, with any amendments
3. Action approving minutes: November 28, 2017 regular meeting 1- 3
(Note: No meeting was held on December 12 or 26, January 9)
4. Action on Resolution Approving Kelli Gillispie as Acting Chair of the 4
Mound Housing and Redevelopment Authority
5. Action on Resolution Making a Selection Not to Waive the Statutory 5
Tort Limits for Liability Insurance Purposes
5.1 (Added) Action to approve notice of call for redemption on Tax Increment 6
Revenue refunding bonds (MetroPlains Project) Series 2006
6. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
November 28, 2017
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, November 28, 2017, at 6:30 p.m. in the council chambers of the
Centennial Building.
Members present: Chair Mark Wegscheid, Commissioners Jeff Bergquist, Kelli Gillispie, and Jennifer
Peterson
Members absent: Commissioner Ray Salazar
Others present: City Manager and Director of Public Works Eric Hoversten, Community Development
Director Sarah Smith, Administrative Assistant Mary Mackres, Director of Finance and Administrative
Services Catherine Pausche, Field Officer Stewart Simon,
1. Open meeting
Chair Mark Wegscheid called the meeting to order at 6:30 p.m.
2. Approve agenda
MOTION by Bergquist, seconded by Peterson, to approve the agenda. All voted in favor. Motion
carried.
3. Approve minutes: August 22, 2017 regular meeting
MOTION by Bergquist, seconded by Peterson, to approve the minutes of the August 22, 2017
regular meeting. All voted in favor. Motion carried.
4. Action on a Resolution authorizing Staff to issue a request for qualification and interest in a
townhome development in the Mound Harbor TIF District
Catherine Pausche said she and Hoversten and Smith have been working on a new approach for
the Mound Harbor TIF District 1-3 in order to come up with concepts to get spur development.
Pausche gave background on the history of the City TIF districts which included the 1998-1999
opening of Auditors Road as a new Main Street for the City and the 2001-2 Mound Marketplace and
Village by the Bay construction which was TIF District 1-2. Pausche stated that prior to the District
1-2 development, the City and School District were looking to build a Community Center on the site
which was the old Westonka High School.
Pausche mentioned other significant development which included the 2003-2004 Shoreline Drive
realignment which was a joint effort with Hennepin County. She added the realignment allowed for
the development of the 2006 Villas on Lost Lake townhomes and Caribou commercial pad.
Pausche said the Dakota Regional Trail opened in 2008 which coincided with the housing bubble
and economic slowdown during 2008-2009 which caused redevelopment in Mound to hault. In
2009, the City leveled four blighted buildings in the Harbor District which had been purchased by
the City which created the open space we see today.
Pausche added that during the economic downturn the City used the time to do an extensive
Market Study in 2013. Pausche added the study findings noted there was a limit to commercial
activity the area could support.
Pausche presented the original concept plan from 2005 for the Harbor District/Auditors Road.
Pausche said the plan from 2005 was a concept of a vertical, mixed use of residential above and
HRA Minutes — November 28, 2017
commercial/office on the street level. Pausche added that the Mound Visions concept of
commercial activity along Auditors Road did not contemplate the Mound Marketplace development.
Pausche stated there continues to be commercial vacancies in the City and surrounding
communities which makes building significant commercial/office along Auditors Road not a viable
option.
Pausche showed the 2013 market study called for affordable units and noted the 10 affordable
townhomes added as part of the Balsam Hill project in addition to the number of moderate priced
residential units available in the City. Pausche said the study also called for Senior Housing options
and noted the Harrison Bay Senior Living project will exceed the number of units specified, in
addition to the 10 luxury condominiums to be built on the Mound side of the Serenity Hill project.
Pausche said Staff proposes a new concept for the Harbor District which includes a 17-20 unit,
single -level, high-end townhome residential concept rather than a mixed vertical commercial use.
Pausche stated the concept is to have a more open, spacious site plan with a horizontal mix of
residential and commercial for the area rather than the vertical concept. Pausche also noted many
existing commercial property owners aren't interested in redevelopment and cautioned the City
about creating too much capacity. Pausche stated the proposed Harbor District concept would
include reserving space for a future restaurant but would move forward first with approaching
developers on the townhome project concept because staff believe the market is ready for this type
of project based on the success of the remaining Villas on Lost Lake townhomes.
Pausche said the concept plan is to remove the majority of Auditors road to improve lake access for
pedestrian traffic and create a more aesthetically pleasing open field of vision from the lake to the
downtown. Pausche said the east end of Auditors Road would remain to serve the potential
restaurant and to keep some of the existing parking.
Pausche said Ehlers provided an analysis in 2016 to determine the amount of development it would
take for the City to repay the redevelopment bonds and the answer was $27.8 Million, which is the
equivalent of (1) 180 apartment units and 6,300 square feet of commercial or (2) 85,000-100,000
square feet of retail, which Pausche said (1) is not desirable and (2) is not realistic.
Pausche noted the success the City had with Aeon taking over the ownership and redevelopment of
the Balsam Hill project and that an RFQ process could also meet the objectives of the Harbor
District townhome concept by informing potential developers of this opportunity and seeking bids
and concepts for the site.
Pausche said another benefit to starting with this project is the City owns all the land for the
proposed townhome and restaurant sites. The City can work with the privately owned parcels in the
area in future phases of redevelopment, which has created hurdles in the past.
Pausche relayed a summary of the City investment in the Harbor Area and is not proposing
additional public financial assistance. Pausche said the investment included $3.3M for the dump
remediation and dredge, $1.8M on property acquisitions, $1.7M for the Greenway and pier
construction, and $400,000.00 for relocating the historic pump house and signage. Pausche added
the City is levying to repay the $4M 2009D bonds to supplement the TIF and that these bonds
become callable in 2019, with the TIF district expiring in 2031. Pausche said any new development
would provide relief on the levy and that the City has suspended the levy to try to see if a build out
could occur.
Pausche said the estimate of taxable market value of a 17-20 new townhome development in the
Harbor is $12M+. Pausche said Staff is also proposing to convert ten of the 24 transient slips in
Lost Lake Harbor to overnight slips which could be combined with the 10 extra slips from the Villa
HRA Minutes — November 28, 2017
development in order to increase the value of the townhomes. Pausche said the change of use to
overnight slips will be discussed in detail during the Council Meeting.
Pausche said the RFQ process would require asking the LMCD to change 10 of the 24 transient
slips to overnight, request the City Council to issue the RFQ and authorize a commercial appraisal
of the land, once responses are received to interview and narrow down proposals in February and
then decide how to proceed with negotiating a purchase agreement.
Peterson asked how many slips are in the harbor district. Pausche said there are currently 37
overnight with only 27 townhomes built and about 20 of those slips being used by townhome
owners. Pausche said the proposal at the Council Meeting will be to convert 10 of the 24 transient
slips in the Harbor District to overnight use to combine with the 10 extra in the 37 slip complex.
Wegscheid noted the action for the HRA is to not approve the slips but rather the RFQ for a
townhome proposal and then to entertain offers and weigh the feedback from the developers.
Gillispie said she is aware of another City giving more time for the RFQ responses due to the
holiday season. Pausche said she thought two months was enough time as it is not for a full
discovery in order to minimize their investment prior to selection, but noted she is open to extending
the deadline. The HRA agreed to extend the RFQ deadline for another 2 weeks to February 12,
2018.
Gillispie asked that once the City entertains bids and votes to proceed, is the City bound to
complete this process to which Hoversten yes. Pausche said the City is bound when it enters into a
purchase agreement.
MOTION by Gillispie, seconded by Peterson to approve the resolution. All voted in favor. Motion
carried.
RESOLUTION NO. 17-15H: RESOLUTION AUTHORIZING STAFF TO ISSUE A REQUEST FOR
QUALIFICATION AND INTEREST IN A TOWNHOME DEVELOPMENT IN THE MOUND
HARBOR TIF DISTRICT
5. Adjourn
MOTION by Peterson, seconded by Bergquist, to adjourn at 6:57 p.m. All voted in favor.
Motion carried.
Chair Mark Wegscheid
Attest: Catherine Pausche, Clerk
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 18- H
RESOLUTION APPOINTING KELLI GILLISPIE
AS ACTING CHAIRPERSON FOR THE HRA FOR 2018
WHEREAS, the By -Laws governing the Housing and Redevelopment Authority of and
for the City of Mound state that at its first meeting each year an Acting Chairperson shall
be appointed; and
WHEREAS, The Acting Chairperson shall perform the duties of Chairperson during the
disability or absence of the Chairperson from the City or, in the case of vacancy in the
office of Chairperson, until a successor has been appointed and qualifies;
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
of and for the City of Mound, Minnesota, to appoint Kelli Gillispie as Acting Chairperson
of the Housing and Redevelopment Authority for 2018.
Adopted by the HRA this 23rd day of January, 2018.
Attest: Catherine Pausche, Clerk
a
Chair Mark Wegscheid
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 18--H
RESOLUTION MAKING A SELECTION NOT TO WAIVE STATUTORY TORT
LIMITS FOR LIABILITY INSURANCE PURPOSES
WHEREAS, pursuant to previous action taken, the League of Minnesota Cities
Insurance Trust has asked the Housing and Redevelopment Authority of and for the City
of Mound to make an election with regards to waiving or not waiving its tort liability
established by Minnesota Statutes 466.04; and
WHEREAS, the choices available are; to not waive the statutory limit, to waive the limit
but to keep insurance coverage at the statutory limit, and to waive the limit and to add
insurance to a new level;
NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment
Authority of and for the City of Mound, Minnesota, to hereby elect not to waive the
statutory tort liability established by Minnesota Statutes 466.04; and that such election is
effective until amended by further resolution of the Mound HRA.
Adopted by the HRA this 23rd day of January, 2018.
Chair Mark Wegscheid
Attest: Catherine Pausche, Clerk
NOTICE OF CALL FOR REDEMPTION
$3,295,000
Housing and Redevelopment Authority
of and for the City of Mound, Minnesota
Tax Increment Revenue Refunding Bonds
(MetroPlains Project)
Series 2006
NOTICE IS HEREBY GIVEN that, by order of the Board of Commissioners of the Housing and
Redevelopment Authority of and for the City of Mound, Minnesota (the "Authority"), there have been
called for redemption and prepayment on
February 15, 2018
a portion of the bonds (the "Refunded Portion") of the Authority designated as the Tax Increment
Revenue Refunding Bonds (MetroPlains Project), Series 2006, dated November 2, 2006, having a stated
maturity date of February 15, 2027, totaling $35,000 in principal amount, and with the following CUSIP
number:
Year of Maturity
Amount to Be Partially
Redeemed CUSIP
2027 $35,000 620545 AD5
The Refunded Portion is being called at a price of par plus accrued interest to February 15, 2018,
on which date all interest on said Refunded Portion of the bonds will cease to accrue. Redemption shall be
within a maturity chosen by random selection by Bond Trust Services Corporation, as paying agent and
registrar. The Holders of the bonds hereby called for partial redemption is requested to present their bond
for payment at the main office of Bond Trust Services Corporation, 3060 Centre Pointe Drive, Roseville,
Minnesota 55113, on or before February 15, 2018.
Important Notice: In compliance with the Jobs and Growth Tax Relief Reconciliation Act of 2003,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time
the payment by the redeeming institutions if they are not provided with your social security number or federal
employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form,
which may be obtained at a bank or other financial institution.
Dated: January 23 1 2018.
BY ORDER OF THE BOARD OF COMMISSIONERS
OF THE HOUSING AND REDEVELOPMENT
AUTHORITY OF AND FOR THE CITY OF MOUND,
MINNESOTA
By /s/ Eric Hoversten
Executive Director
Housing and Redevelopment Authority of and for
the City of Mound, Minnesota
Additional Agenda Item - HRA - Jan 23, 2018
Item 5.1
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