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Home My WebLink About20080204 - HDA Annual Report for 2007'~ ~ HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL REPORT FOR 2007 BLOCK 1 AND BLOCK 2 CONDOMINIUMS AND TOWNHOUSES Sherman Associates terminated their condominium project on Block I in 2006. They proposed a townhouse concept to the City and HRA. In Marcb the Market Study of the townhouse proposal indicated that the project would not be feasible at the unit prices proposed. Commercial development on Second, interpretive facilities or a market shelter would not included in the townhouse proposal because the tax increment {smaller amount) would be needed for assessments for street and utility construction. Sherman stopped work on the townhouse proposal, but asked to retain development rights for Block I for one year. The Council Planning Committee, with two Housing and Redevelopment Authority {HRA) board members, recommended settling financial claims prior to terminating the Sherman development agreement. The HRA Board and City Council approved that action in April. Settlement and termination agreements were approved by the Board in October and the City Council in November and then signed by Sherman Associates. The development agreement and purchase agreement with Three Rivers Place on Block 2 were extended to July 3I, 2008. The City Council authorized a feasibility study for the water main, Tyler and Ramsey Street reconstruction projects for 2008 at the recommendation of the Working Group (below}. The HRA will contribute funding if the project is approved in 2008. FUTURE DIRECTIONS INCLUDE VERMILLION STREET In May the Board held a workshop to review recent redevelopment efforts and ongoing programs. With the decertification of the Downtown Pre-79 TIF District in 2006 future projects will need a variety of funding sources, ofwhich TIF may be one. The goals and conditions of redevelopment on Blocks I, 2 and 3 will have to be agreed with Council The Quiet Zone needs to be completed before future requests for development proposals are made. Commercial loans and interest reductions will be continued as funds permit. Residential loans will be continued throughout the community for the maintenance of affordable housing and preservation of historic property. The Boazd was very interested in using its redevelopment powers in other areas of the city. They directed staff to research the need for a redevelopment area on Vermillion Street. . COUNCIL PLANNING COMMTFTEE, HRA &EDC WORKING GROUP The HRA Board met with the City Council on Juty 30. The redevelopment process and market conditions were discussed. The Mayor appointed a working group consisting of the Council Planning Committee, two HRA members and one Economic Development Commission (EDC) member to review the potential for public and private roles in downtown redevelopment, and whether or not to establish an Economic Development Authority (EDA). Biweekly meetings started in September and the group recommended at year end that City Council should consider establishing an EDA. The report on downtown redevelopment wilt be finished in 2008. QUIET ZONE WORK COMPLETE The Board contracted with HDR Engineering for construction plans for necessary Quiet Zone improvements on the Second and Third Street crossings_ The City Council authorized contracts for the work which was completed in November and the Federal Rail Authority was notified in December. Review and approval will take up to three months. Costs will be assessed to the adjacent HRA development property. BLOCK 29 DELAYED A RFP was prepared for advertising in January, but tabled to address parking concerns raised by the owners of nearby mixed use buildings. They did not have off-street parking and considered the HRA property an opportunity to fix their problem. The Board approved a concept plan including a parcel for new construction, a public parking lot, and City ownership of the oak trees. The board rejected a parking lot only plan. The Board assumed that the costs ofa public parking lot would be shared by the benefited owners and the City, if City Council approved. The Council PIanning Committee Iiked the concept but asked for assurance that the property owners would contribute_ The project was deferred for the rest of the year due to other demands on stafftime. OTHER ACTIVITIES Bonds. The Board approved issuance of Housing Revenue Refinancing Bonds for Augustana Apartments. Public Improvements. The City and Minnesota Department of Transportation have been working together to reconstruct failed limestone retaining walls on Vermillion Street since 2001. During 2007 MnDOT contracted for plans. They secured two federal grants for the project. MnDOT plans to bid and contract for the reconstruction of the walls along Vermillion Street in 2008, contingent on the City Council contracting for reconstruction of parts of 6`i', 7"` and 8~' Streets, the alleys and adjacent walls at the same time. The Board has supported the concept for many years and in 2007 they authorized funding the cost of plans by McDonald and Mack Architects for the reconstruction of the retaining walls on 6~h, 7"' and 8`~' in order to reduce the cost to the adjacent historic properties, some of which include affordable apartments. Vermillion Street Redevelopment. The Board authorized and City Council approved a purchase offer for 1501 Vermillion Street, the former "Jiffy Station" with the intention of cleaning up and clearing the site for redevelopment. Another party made a higher offer but that purchase had not been closed by the end of the year. Closing the sale is contingent on environmental reports. Staff started work on a redevelopment study area for potential projects on Vermillion Street. LOAN PROGRAMS The board amended the program guidelines to raise the limit for commercial rehabilitation interest reductions to $30,000 per building. Preliminary approval was given to Joe Ryan's application for interest reduction for the rehabilitation of 108 E Second Street (RJ's) subject to completion and normal conditions. The project will be completed in 2008. RED ROCK CORRIDOR An Alternative Analysis study completed in 2007 indicated that it will take time to achieve a cost/benefit ratio that would justify commuter rail. The corridor plans to build up rider numbers in the corridor by offering ride share and bus transit. The proposed high speed train system to Chicago would benefit the corridor by funding capital costs. Funds for a park and ride lot on Block 16, HRA property set aside for transit use, will be requested from the State Bonding Bill in 2008. HRA REAL ESTATE Attached map shows HRA properties at the end of 2007. There were no purchases or sales. MEMBERSHIP Robert C. Hollenbeck -Chairman Ronald Toppin -Vice Chair Dennis Martodam - reappointed io 2011 Kurt Keens -reappointed to 2012 Pam Holzem FINANCE HRA funds will be included in the City's 2007 Audit and Financial Report. Reported by: John Grossman Executive Director 2 Y a a W w J ~~ ~~ IJ R~ d U ~ ~ m U o a~i ~ ~ ~ 'Q y o ~ -1 m ~ ~ > d ~ ~ ~ J ~ ~~_ _ _ ~`~0~ r ~~ ~"J J ~~ a v= i-9 AMH 1S NOCIIlW213A as N w tr Q~ ~ ,~ J _~' ~ ,~ a ~ 1S 2f31J11 1S A3lit~8 w w w w ~ N ~ ~ Z f111LL ~ I-- 1- N Q IL a0 M 'd' Its is A3swda 1S A3191S 1S A003