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HomeMy WebLinkAbout2017/11/06 - ADMIN - Minutes - Economic Development Authority - RegularAllSt. Louis Park OFFICIAL MINUTES M I N N E 5 0 T A ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA NOVEMBER 6, 2017 1. Call to Order President Mavity called the meeting to order at 7:20 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Steve HalIfin, Thom Miller, Susan Sanger, and Jake Spano. Commissioners absent: Gregg Lindberg. Staff present: Deputy City Manager/Human Resources Director (Ms. Deno), City Attorney (Mr. Mattick), Principal Planner (Ms. McMonigal), Economic Development Coordinator (Mr. Hunt), Community Development Director (Ms. Barton), Planning & Zoning Supervisor (Mr. Walther), Operations & Recreation Director (Ms. Walsh), and Recording Secretary (Ms. Pappas). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes October 2, 2016 It was moved by Commissioner Spano, seconded by Commissioner Miller, to approve the EDA minutes as presented. The motion passed 6-0 (Commissioner Lindberg absent). 4. Approval of Agenda It was moved by Commissioner Hall/in, seconded by Commissioner Brausen, to approve the EDA agenda as presented. The motion passed 6-0 (Commissioner Lindberg absent). 5. Reports 5a. Approval of EDA Disbursements It was moved by Commissioner Brausen, seconded by Commissioner Spano, to approve the EDA Disbursements. The motion passed 6-0 (Commissioner Lindberg absent). 6. Old Business - None 7. New Business 7a. First Amendment to Purchase and Redevelopment Contract with PLACE E - Generation One, LLC. Resolution No. 17-21 Economic Development Authority -2- November 6, 2017 Mr. Hunt presented the staff report. He stated that at the October 3 study session, PLACE requested that the acquisition of the EDA's property for its mixed-use, mixed -income project (Via) occur through two separate property conveyances - one for the north side and one for the south side. Closing on the north side would occur no later than November 305 2017, allowing the project to commence on the north side before the end of the year, as required under its DEED cleanup giant. Conveyance of the south side site would occur no later than April 30, 2018. Authorization of two separate property closings does not change the required project commencement and completion dates outlined in the contract and allows PLACE to complete construction on the total project earlier than the required December 31, 2019. PLACE's request requires amending the Purchase and Redevelopment Contract with the EDA. President Mavity stated that the action requested this evening is very narrow and specific to the timing and phasing of this contract. This is an amendment to the contract which still stands. She added that there will be no revisiting of approval of this project this evening. Commissioner Brausen stated he wanted to confirm that this amendment does not change the basic terms of the agreement and what is going to be built on the north and south parcels. Mr. Hunt stated that is correct - the project remains the same. The only thing changing is that the property conveyance would occur in two separate transactions. Commissioner Brausen asked also if the city is being paid for the one parcel at the end of this year and for the other parcel next year. Mr. Hunt stated that is correct. Commissioner Spano added that he understood that the developer had asked for an extension related to the DEED grant. An extension had already been granted to the end of this year but not until next April, 2018. Mr. Hunt stated that the DEED grant agreement requires that the project must be started by the end of this year. He indicated that DEED prefers not to provide extensions. Commissioner Hallfin asked if PLACE is having any issues with their financing, in light of emails he received from the public about the project. Mr. Hunt stated that staff is not aware of any issues related to the developer's finances preventing it from closing on the property, The project is expected to close at the end of this month. He added that the developer is here this evening to answer any questions. Chris Velasco, PLACE Developer, stated there will be no issues with the financing, and there will be an opportunity to begin the project early now. Commissioner Sanger stated that the reason for this split between the two parcels is that there is still no confirmation fiom the hotel for the south side, which is holding up the rest of the project and the affordable housing in particular. She added that unless there is an arrangement with the hotel, there seen -is to be a financial issue here. Mr. Velasco stated that they are still waiting for approval from the Marriott, and this is expected in November or December. He noted that they are not anticipating any problems. President Mavity allowed public comments at this time. Economic Development Authority -3- November 6, 2017 Jeff Walsh, 3414 Yosemite Ave. S., stated that he is not a proponent of this project and is in agreement with many of the statements of Commissioner Sanger. He noted that the project seems suspect, and the fact that there is not enough parking seems extraordinary. Lois Zander, 3109 Zarthan Ave. S., stated that she has concerns about this project being separated and asked if there is need for a new EAW now that there is a different plan. She noted that there are 218 apartments on the north side, with 93 parking spaces and 61 spaces on the street, which does not seem to meet any of the city's requirements for parking. She is concerned about how the project has changed, asking if there is need to look at the whole project as it stands. She added that there are also questions about lack of parking based on the availability of transit. Bus transit in this area will now be limited. Megan Phimister, 3451 Zarthan Ave. S., stated that her concerns are with transparency. She stated that residents are particularly concerned with the digester and the under - utilization of it if the south side project fails. She also added that this intersection is very overused. Harvey Ginsberg, 5854 W. 39" St., stated he understands about the negotiations with the hotel, but he also has concerns about transparency and would like to see specific details of the agreement with the hotel. He asked what has been discussed and what formal documents have been exchanged. He added that this information has not been made public, and if the council is approving a project modification without a hotel in place, this is a foolish gamble. Mr. Velasco stated that the digester has a minimum operating standard. Since 65% is generated on the north side, it should not pose a problem. He added that regarding the hotel, they have submitted their application and are following the Marriott process, adding that Aimbridge will be the operator of the hotel, and they are walking them through the process. He stated they have not had any indication that the project will not be approved by Marriott. Mr. Velasco added that related to parking, they have 99 spaces underground, 56 under the canopy and 64 in the street, which meets all the city's requirements. Commissioner Miller stated that he is in support of this project, yet he appreciates the concerns from residents. He added that from his perspective, the last several projects have been luxury apartments, with no public spaces and no affordable housing. PLACE will have about 200 affordable units. Additionally, environmental concerns, green space, and gathering places are being addressed with this project, which are things that St. Louis Park residents are asking for. He stated that we all need to see the value of this project. This is exactly what residents are looking for. Commissioner Sanger stated that many people do not want this project. It is dense, and there is potential for much traffic congestion. She stated that the council needs to step back and ask why we are talking about splitting the project. There is no signed contract with the hotel, and because of this, the closing date of the north and south side projects are at different times. She added that it is incumbent on this council to ask what if the south side does not get developed or is a long delay. She added that she is concerned because of another project in California by this developer, which was over -promised and under developed, and unrealistic financials. She stated that this is starting to all sound very similar, and she does not want St. Louis Park to be in this position. Commissioner Economic Development Authority -4- November 6, 2017 Sanger added she is troubled by this council taking the developer's word on everything, and she will not support this tonight. Commissioner Miller responded to Commissioner Sanger stating that this project is actually the least dense multi -family unit project the city has done recently, and there have been no financial issues that have changed on this project whatsoever. Commissioner Spann stated that he is reminded of other projects that came before the council that have been delayed, adding that cities and councils need to understand that timelines sometimes change. He added that there were issues with the Excelsior & Grand development, as well, when the original developer walked out. The staff asked council what to do, and council said, "go find another developer." Commissioner Spano stated that this is an illustration of things being somewhat fluid. He noted that with this project, the financials have not changed. The developer needs to act on the DEED grant, so that is the reason the timing is changing. We want to be certain we do not lose that financing on the project, so we must move ahead. Commissioner Brausen stated that we have heard about the anecdotal information from California; however, there are other projects by this developer that have gone well, and staff has done their due diligence on this project and the developer, adding that he will support this. President Mavity added that she received some emails from residents which said there was concern about how quickly this project has moved forward. She added that it first came to council in November, 2013, noting that staff can track all the meetings that have been conducted with residents since then. She added that this project has had more meetings than any other project or development in the city, and there will never be 100% agreement on it. The process has been long and transparent, with community engagement. She stated that she will support it. It was moved by Commissioner Brausen, seconded by Commissioner Miller, to adopt EDA Resolution No. 17-21, approving the first amendment to Purchase and Redevelopment between the EDA and PLACE E -Generation One, LLC. The motion passed 5-I (Commission Sanger opposed, Commissioner Lindberg absent) 8. Communications - None 9. Adjournment The meeting adjourned at 8:00 p.m. Melissa Kennedy, Secretary ( ) Anne Mavity, President