HomeMy WebLinkAbout2017-06-20 HRA Regular Meeting PacketAgenda
Housing and R edevelopment Authority Meeting
City of Edina, Minnesota
Edin a City Hall Cou n cil Cham be rs
Im mediately Following Edina City Council Meeting
Tuesday, June 20, 2017
7:00 PM
I.Call to Order
II.Roll Call
III.Approva l of Meeting Agenda
IV.Adoption of Consent Agenda
All a genda items listed on the consent agenda are considered routine and
will be enacted by one motion. There will be no separa te discussion of such
items unless requested to be remov ed from the Consent Agenda by a
Commissioner of the HRA. In such cases the item will be remov ed from the
Consent Agenda and considered immediately following the a doption of the
Consent Agenda. (Favorable rollcall v ote of majority of HRA Commissioners
present to approve.)
A.Approv e Minutes of June 6, 2017 Regular HRA Meeting
B.Request for Purchase: Authorize Consultant Services for 3944 Market Street
Construction Services
C.Request for Purchase: Consider Award of Contra ct PW 17-001, Hootens
Building Demolition
V.HRA RE SOLUT ION 2017-05: Adopting a Modi>cation to the Redevelopment Plan for
the Southeast Edina Redevelopment Project Area, Establishing the 50th and
France 2 Tax Increment Fina ncing District Therein and Adopting a Tax Increment
Fina ncing Plan T herefor
VI.Proposed Sale of and Redevelopment Agreement for 3925, 3930 and 3944 Ma rket
Street
VII.Adjournment
The Edina Housing and Redevelopment Authority wants a ll participants to be
comforta ble being part of the public process. If you need assistance in the way of
hearing ampli>ca tion, an interpreter, large-print documents or something else,
please call 952-927-8861 72 hours in advance of the meeting.
Date: June 20, 2017 Agenda Item #: I V.A.
To:C hair & C ommissioners of the Ed ina HR A Item Type:
Minutes
F rom:Debra A. Mangen, C ity C lerk
Item Activity:
Subject:Approve Minutes o f June 6, 2017 R egular H R A
Meeting
Action
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P ME NT
AUT H O R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED :
Approve minutes as presented.
I N TR O D U C TI O N :
AT TAC HME N T S :
Description
Draft June 6, 2017 HRA Regular Meeting Minutes
Page 1
MINUTES
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
JUNE 6, 2107
11:02 P.M.
I. CALL TO ORDER
Chair Hovland called the HRA meeting to order at 11:02 P.M.
II. ROLLCALL
Answering rollcall were Commissioners, Brindle, Fischer, Staunton, Stewart, and Chair Hovland.
III. APPROVAL OF MEETING AGENDA
Motion made by Commissioner Brindle and seconded by Commissioner Staunton approving the
Meeting Agenda.
Ayes: Brindle, Fischer, Staunton, Stewart, Hovland
Motion carried.
IV. CONSENT AGENDA ADOPTED
Motion made by Commissioner Brindle, seconded by Commissioner Staunton approving the
consent agenda as follows:
IV. A. Approve minutes of May 2, 2017 Work Session, May 16, 2017 work Session and May 16,
2017 Regular Meeting.
IV.B. Award Contract ENG-17-12 York Avenue and West 66th Street Intersection Improvements
to the lowest responsible bidder, Meyer Contracting, Inc. in the amount of $521,334.75.
V. 4416 VALLEY VIEW ROAD – POTENTIAL SALE OF REAL ESTATE
Following a brief discussion, Commissioner Stewart made a motion, seconded by Commissioner
Brindle to: 1)grant prospective purchaser or designees a 60-day period to access the site to
conduct appropriate investigations regarding site conditions; 3) Allow prospective purchaser to
submit rezoning applications and development plans for consideration by the Edina Planning
Commission and Edina City Council stipulating such consent does not guarantee any approvals
by either body; 4) Direct staff to negotiate terms and conditions of sale on behalf of the HRA
with the sale brought back to the HRA for final action.
Ayes: Commissioner: Brindle, Fischer, Staunton, Stewart, Chair Hovland
It was noted that the City Council would need to take action transferring the 4416 Valley View Road
property from the City of Edina to the HRA at its meeting on June 20, 2017
VI. MARKET STREET REDEVELOPMENT – PROJECT UPDATE
Executive Director Neal informed the HRA that it was necessary to hold a public hearing in
order to keep the project on schedule and satisfy all necessary legal obligations in meeting
public hearing publication guidelines. The HRA decided that the Special Meeting would be
held on Tuesday, June 27 at 7:00 p.m. in the Council Chambers.
The HRA received an update on the Market Street Redevelopment Project that included: 1) location of
proposed temporary staging; 2) timing of the North Ramp Design Contract; and 3) a tentative
schedule of the North Ramp Expansion and the private redevelopment project.
Minutes/HRA/April 4, 2017
Page 2
VII. ADJOURNMENT
Chair Hovland declared the meeting adjourned at 11:15 p.m.
Respectfully submitted,
Scott Neal, Executive Director
Date: June 20, 2017 Agenda Item #: I V.B.
To:C hair & C ommissioners of the Ed ina HR A Item Type:
R eq uest F or P urc has e
F rom:Brian E. O ls on, Directo r of P ublic Works
Item Activity:
Subject:R eques t fo r P urchas e: Authorize C ons ultant S ervices
for 3944 Market S treet C o nstruc tio n S ervic es
Action
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P ME NT
AUT H O R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED :
Approve R equest for P urchase
I N TR O D U C TI O N :
S ee attached S taff R eport
AT TAC HME N T S :
Description
Reques t for Purchas e: 3944 Market Street - Staff Report
Reques t for Purchas e: 3944 Market Street - Propos al
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Date: June 20,2017
To: Housing and Redevelopment Authority
From: Brian E. Olson, Director of Public Works
Bill Neuendorf, Economic Development Manager
Subject: Request for Purchase: Authorize Consultant Services for 3944 Market
Street Demolition.
Purchase
Subject to:
☐List Quote/Bid
☐State Contract
☐Service Contract
The
Recommended
Bid is:
☒Within Budget
☐Not Within Budget
Barr Engineering
Date Bid Opened or Quote Received: Bid or expiration Date:
June 13, 2017 July 13, 2017
Company: Amount of Quote or Bid:
Barr Engineering Company $31,500
Recommended Quote or Bid:
Page 2
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Department Director Authorization: ________________________________________
City Council Authorization Date: ______________________ (for purchases over $20,000 only)
Budget Impact
Funding for this purchase is from the Housing and Redevelopment Authority
Environmental Impact
There is environmental contamination at this site from the prior land owner or use.
Remediation in compliance with the MPCA approved Response Action Plan is
critical to the future use of the property.
Community Impact
The short term impact is construction noise and dust. This will be minimized to the
extent practical for the duration of the project.
June 13, 2017
Mr. Brian Olson
City of Edina
4801 W. 50th Street
Edina, Minnesota 55424
Re: Proposal for Response Action Implementation, Construction Oversight and Administration
3944 49½ Street West, Edina, Minnesota
Dear Mr. Olson:
Barr Engineering Co. (Barr) is pleased to submit this proposal for environmental oversight and
construction administration during implementation of the proposed response action at 3944 49½ Street
West, Edina, Minnesota (Property).
On March 20, 2017, Barr submitted a Response Action Plan (RAP) to the Minnesota Pollution Control
Agency (MPCA) on behalf of the City of Edina. The RAP was prepared to address the presence of onsite
volatile organic compounds (VOCs) in the soil on the Property and to remove the underground storage
tank (UST). The RAP was approved by the MPCA on April 19, 2017.
The scope of work detailed below includes Barr’s professional environmental services to assist with
successful implementation and documentation of the RAP activities. Also included are engineering
services related to a geotechnical evaluation for the proposed excavation and construction administration.
Scope of Work
Barr will provide the following scope of work:
Environmental Services
Update the project-specific health and safety plan (PHASP) prior to performing oversight during
implementation of the response actions.
Mobilize to the site.
Provide remedial construction oversight for up to one-week of full time onsite support to perform
field screening of soil excavation, oversight of UST removal, and collection of documentation
soil samples.
Conduct soil classification which will include inspection for visual evidence of contamination
(i.e. odor, discoloration, sheen, or other field indications of potential soil impacts), and headspace
volatile organic vapor screening. Soils will be classified in accordance with ASTM D-2488,
Standard Practice for Description and Identification of Soils (Visual/Manual Method). A
photoionization detector (PID) with a 10.6 eV, or higher, lamp will be used to perform headspace
volatile organic vapor readings. Field screening results along with visual observation and
professional judgment will be used to guide the excavation. Field tasks and documentation will be
Mr. Brian Olson
June 13, 2017
Page 2
\\barr.com\projects\Mpls\23 MN\27\23271319 Hooten Cleaners\ProjRiskMgmt\RAP Implementation_Construction Oversight Cst Est\RAP
Implementation Proposal.doc
collected in accordance with Barr’s standard operating procedures (SOPs) applicable to the
project
Collect up to five discrete base of excavation and eight discrete sidewall soil samples for
laboratory analysis for VOCs by EPA method 8260 for the Minnesota Department of Health
VOC list. These results will be compared to the MPCA’s residential soil reference values
(SRVs).
Collect up to two soil samples from the Contractor-specified borrow source. Samples will be
analyzed for PAHs, RCRA Metals, and/or VOCs depending on the source.
The final excavation extents will be surveyed using GPS methods.
Prepare a Response Action Implementation (RAI) Report, which documents the environmental
cleanup activities at the Site.
Geotechnical Evaluation
Review available as built drawings of the Post Office building located at 3948 49½ Street, and
any available geotechnical data collected during previous work on the Property.
Estimate the structural load from the post office building and complete a slope stability analysis
of the western slope of the proposed temporary excavation.
Prepare a recommendation by a professional engineer with regards to an offset and/or slope to be
maintained during temporary RAP excavation activities.
This proposal letter does not include the contractual conditions for which Barr can provide these
engineering services. Preparation of a contractual agreement between the City and Barr will be
necessary for these engineering services. If this scope is approved, the contract for professional
engineering services will be submitted separately, the city will remain engineer of record on the
project, per the bidding documents.
Construction Administration
Attend construction kickoff meeting
Review contractor submittals with recommendations provided to the City for approval.
Review contractor payment applications for accuracy of work completed, with recommendations
provided to the City for approval.
Conduct general administrative support during construction including answering contractor’s
requests for information, sequencing, scheduling and providing status updates to the City.
Schedule
It is anticipated that the response actions will take one week (five days) and will occur as part of the
demolition of the existing building. It is also anticipated that Barr will be onsite for two days, during final
grading activities, to perform oversight and documentation.
A standard turnaround time for the analytical results will be requested from Legend Technical Services,
of St. Paul, Minnesota, to accommodate the project schedule. Barr will prepare a draft RAI Report for
review by the City of Edina within four weeks of completing the field work and will submit the RAI
Report to the MPCA following review and approval of the City of Edina.
Estimated Cost
Our estimated cost for completing RAP implementation and construction oversight is broken down as
follows:
Mr. Brian Olson
June 13, 2017
Page 3
\\barr.com\projects\Mpls\23 MN\27\23271319 Hooten Cleaners\ProjRiskMgmt\RAP Implementation_Construction Oversight Cst Est\RAP
Implementation Proposal.doc
Expense Breakdown
Barr Labor
Equipment +
Expense
Barr
Subcontractors Total
RAP Implementation + Report $17,000 $1,000 $2,000 $20,000
Geotechnical Evaluation of Excavation $3,500 - - $3,500
Construction Administration $7,500 $500 - $8,000
$31,500
Acceptance of Proposal
Please indicate your acceptance of this proposal by signing and returning a copy. In accepting this
contract, you agree to waive any claim against Barr and will indemnify and hold Barr harmless of any
claim of liability, injury, or loss allegedly arising from us damaging underground objects not called to our
attention prior to beginning the work.
Thank you for the opportunity to provide assistance on your project. If you have any questions, please
call me at 952-832-2718 or Mandy Bohnenblust at 952-842-3533.
Sincerely,
Mary Sands
Vice President
Accepted this _____ day of _____________________, 2017
By______________________________________________
Its
Date: June 20, 2017 Agenda Item #: I V.C .
To:C hair & C ommissioners of the Ed ina HR A Item Type:
R eq uest F or P urc has e
F rom:Brian E. O ls on, Directo r of P ublic Works
Item Activity:
Subject:R eques t fo r P urchas e: C ons id er Award of C o ntract
P W 17-001, Hootens Build ing Demo lition
Action
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P ME NT
AUT H O R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED :
Award B id for C ontract P W-17-001, F ormer H ooten B uilding D emolition
I N TR O D U C TI O N :
P roperty is located at 3944 M arket Street. B ids will be opened on Friday, J une 16, 2017 at 2:00 p.m. Due to the
timing of this project, the information regarding the bids was not available at the time of the publication of the
agenda. T he agenda with relevant Staff R eport will be updated as soon as the information becomes available.
AT TAC HME N T S :
Description
Reques t For Purchas e Staff Report
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Date: June 20, 2017
To: Members of the Edina Housing & Redevelopment Authority
From: Chad A. Millner, PE, Director of Engineering
Subject: Request for Purchase – Contract PW 17-001 Former Hooten Cleaners
Building Demolition, Soil Excavation & Disposal
Purchase
Subject to:
☒List Quote/Bid
☐State Contract
☐Service Contract
The
Recommended
Bid is:
☒Within Budget
☐Not Within Budget
Rachel Contracting $113,190.00
Date Bid Opened or Quote Received: Bid or expiration Date:
June 16, 2017 August 16, 2017
Company: Amount of Quote or Bid:
Rachel Contracting
Veit & Company
Belair Builders
Ramsey Companies
G Urban Companies
Dahn Construction
$113,190.00
$132,926.00
$149,075.00
$149,828.28
$154,100.00
$156,478.00
Recommended Quote or Bid:
Page 2
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Department Director Authorization: _____________________________
City Council Authorization Date: ______________________ (for purchases over $20,000 only)
Budget Impact
Funding for this purchase is from a combination of TIF funds and grants as directed by the Housing and
Redevelopment Authority. Notification about a specific Tax Base Revitalization Account (TBRA) grant
should occur by early July. In order to use those grant dollars, no work can occur until notification about
the potential award of the grant.
Environmental Impact
There is environmental contamination at this site from the prior landowner or use. Remediation in
compliance with the MPCA approved Response Action Plan (RAP) is critical to the future use of the
property.
Community Impact
Demolition of this vacant building and remediation of the soils provides a clean site for future development.
Date: June 20, 2017 Agenda Item #: V.
To:C hair & C ommissioners of the Ed ina HR A Item Type:
R ep o rt / R ecommend atio n
F rom:Bill Neuendorf, Ec o nomic Development Manager
Item Activity:
Subject:HR A R ES O L UT I O N 2017-05: Ad o p ting a
Mo d ific atio n to the R edevelo p ment P lan fo r the
S outheas t Ed ina R ed evelopment P rojec t Area,
Es tab lis hing the 50th and F ranc e 2 Tax Inc rement
F inanc ing District T herein and Adopting a Tax
Inc rement F inanc ing P lan T herefo r
Ac tio n
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P ME NT
AUT H O R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED :
Adopt R esolution 2017-05.
I N TR O D U C TI O N :
T his item considers the use of Tax Increment F inancing (T I F ) as a public finance tool to support public and
private improvements in portions of 50th and F rance D istrict. T he creation of a new T I F R edevelopment D istrict
is proposed.
AT TAC HME N T S :
Description
50 Fr 2 TIF - s taff report
HRA Res 2017-05 es tablis h 50-Fr 2 TIF
50 Fr 2 TIF Plan
June 20, 2017
Commissioners of the Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Resolution 2017-05: Adopting a Modification to the Redevelopment Plan for the
Southeast Edina Redevelopment Project Area, Establishing the 50th and France 2 Tax
Increment Financing District Therein and Adopting a Tax Increment Financing Plan
Therefor
Information / Background:
As recommended by the Edina Housing and Redevelopment Authority (HRA), a financial plan has
been prepared to consider the creation of a new 50th and France 2 Tax Increment Financing (TIF)
District to enable public and private improvements on Market Street (formerly known as W. 49-1/2
Street).
Tax Increment Financing was the public finance tool used in the 1970s to help shape the mixed-use
50th and France District that exists today. The 1970s TIF Plan was very ambitious. It included 143
parcels and 18.3 acres. Incremental taxes were used to fund the creation of the pedestrian byways,
streetscape elements and the existing Center and North Parking Garages. TIF also stimulated the
conversion of gas stations into market-rate condominiums at 50th & Halifax and 51st & France. Other
private investments occurred before the original TIF District was de-certified in 2009.
In 2013/2014, the HRA purchased two properties adjacent to the North Ramp in response to
business owner recommendations to improve parking conditions. After discussion in 2014, it was
deemed preferable to develop these properties in a manner that would add public parking and
additional vitality and street life to the District. After lengthy discussions with the HRA’s selected
development partner, it is recommended that TIF be used to promote investments in and public
improvements at 50th and France.
The City/HRA retained several professionals to provide expertise and assistance on this project.
Ehlers & Associates prepared the proposed TIF Plan and related modifications to the Southeast
Edina Redevelopment Project Area. Stantec Consulting was engaged to evaluate the existing
structures for conformance with Minnesota TIF Statutes. Legal review was provided by Dorsey &
Whitney.
HOUSING AND
REDEVELOPMENT AUTHORITY
Established 1974
STAFF REPORT Page 2
The proposed Tax Increment Financing District conforms to the requirements of Section 469 of the
Minnesota Statutes and is based on the following activities and findings:
• Parcels are located within the boundaries of the Southeast Edina Redevelopment Project
Area,
• Parcels identified as “mixed use center” in Comprehensive Plan (pages 4-25 to 4-29),
• Identified as “potential area of change” in Comprehensive Plan (pages 4-30 to 4-33),
• Aligned with several of the strategic actions identified in Vision Edina (page 7, 9, 10), and
• Proposed project could achieve mixed-use project and improve public parking in a manner
that is welcoming to all customers - drivers, bus riders, bicyclists and pedestrians.
The proposed 50th and France 2 TIF District is approximately 2.9 acres in size and includes nine
parcels that are anticipated to be redeveloped in the near future. Most of the parcels are tax-
exempt. Two parcels are vacant and the remaining are currently used for parking. The proposed re-
use of these properties is based on the zoning approvals and modifications to the Comprehensive
Plan that were granted preliminary approvals on April 18, 2017. Final zoning approvals are
anticipated on June 20, 2017. The new development will consist of 110 new apartment units,
approximately 35,000 Square Feet of new commercial space centered around a new public plaza.
New underground parking will be provided – one level will be for apartment tenants and the other
will be available to the general public. The existing North Parking Ramp will also be expanded from
262 to 573 public parking stalls.
In May 2017, in accordance with Minnesota Statutes, other taxing agencies, such as Hennepin
County, and Edina School District #273, were notified of the potential creation of the 50th and
France 2 West TIF District. To date, no comments have been received from these agencies. The
Edina Planning Commission discussed the proposed TIF Plans on June 14, 2017 and found that the
proposal is consistent with the City’s Comprehensive Plan.
The proposed Resolution 2017-05 and proposed 50th and France 2 TIF Plan are attached for your
review and consideration. Representatives from Ehlers & Associates, the City’s public financing and
redevelopment advisors will be available to answer questions.
The Edina City Council has a similar agenda item identified as Resolution 2017-68.
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF EDINA
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2017-05
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA,
ESTABLISHING THE 50TH AND FRANCE 2 TAX INCREMENT FINANCING
DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Edina Housing and Redevelopment Authority (the "HRA") and the City of Edina (the "City") that
the HRA adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan
Modification") for the Southeast Edina Redevelopment Project Area (the "Project Area") and
establish the 50th and France 2 Tax Increment Financing District (the "District") and adopt a Tax
Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and
the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity
with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, and Sections
469.174 to 469.1794, inclusive, as amended (the "Act"), all as reflected in the Plans and
presented for the Board's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Plans and has caused the
Plans to be prepared; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to
the adoption of the Plans. The HRA has also requested the City Planning Commission to provide
for review of and written comment on the Plans and that the Council schedule a public hearing
on the Plans upon published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
1. The HRA hereby finds that the District is in the public interest and is a "redevelopment
district" under Minnesota Statutes, Section 469.174, Subd. 10, and finds that the
adoption of the proposed Plans conform in all respects to the requirements of the Act
and will help fulfill a need to develop an area of the State of Minnesota which is already
built up and that the adoption of the proposed Plans will help provide employment
opportunities in the State and in the preservation and enhancement of the tax base of
the City and the State and thereby serves a public purpose.
2. The HRA further finds that the Plans will afford maximum opportunity, consistent with
the sound needs for the City as a whole, for the development or redevelopment of the
Project Area by private enterprise in that the intent is to provide only that public
assistance necessary to make the private developments financially feasible.
3. The boundaries of the Project Area are not being expanded.
4. The reasons and facts supporting the findings in this resolution are described in the
Plans.
5. The HRA elects to calculate fiscal disparities for the District in accordance with Minnesota
Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities
contribution would be taken from inside the District.
6. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as presented to the HRA on this date, are hereby approved,
established and adopted and shall be placed on file in the office of the Executive Director
of the HRA.
7. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal
counsel are authorized and directed to proceed with the implementation of the Plans
and for this purpose to negotiate, draft, prepare and present to this Board for its
consideration all further plans, resolutions, documents and contracts necessary for this
purpose. Approval of the Plans does not constitute approval of any project or a
Development Agreement with any developer.
8. Upon approval of the Plans by the City Council, the Executive Director of the HRA is
authorized and directed to forward a copy of the Plans to the Minnesota Department of
Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175,
Subd. 4a.
9. The Executive Director of the HRA is authorized and directed to forward a copy of the
Plans to the Hennepin County Auditor and request that the Auditor certify the original
tax capacity of the District as described in the Plans, all in accordance with Minnesota
Statutes 469.177.
Approved by the Board on June 20, 2017.
_______________________________
James B. Hovland, Chair
ATTEST:
__________________________
Robert J. Stewart, Secretary
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS
CITY OF EDINA )
CERTIFICATE OF EXECUTIVE DIRECTOR
I, the undersigned duly appointed and acting Executive Director for the Edina Housing and
Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and
correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its
Regular Meeting of June 20, 2017, and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this ______________ day of ___________________, ____________.
Scott Neal, Executive Director
As of June 14, 2017
Draft for Public Hearing
Modification to the Redevelopment Plan
for the Southeast Edina Redevelopment Project Area
and the
Tax Increment Financing Plan
for the establishment of
the 50th and France 2 Tax Increment Financing District
(a redevelopment district)
within
the Southeast Edina Redevelopment Project Area
Edina Housing and Redevelopment Authority
City of Edina
Hennepin County
State of Minnesota
Public Hearing: June 20, 2017
Adopted:
Prepared by: EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105
651-697-8500 fax: 651-697-8555 www.ehlers-inc.com
Table of Contents
(for reference purposes only)
Section 1 - Modification to the Redevelopment Plan
for the Southeast Edina Redevelopment Project Area ........................... 1-1
Foreword ............................................................. 1-1
Section 2 - Tax Increment Financing Plan
for the 50th and France 2 Tax Increment Financing District ....................... 2-1
Subsection 2-1. Foreword............................................... 2-1
Subsection 2-2. Statutory Authority........................................ 2-1
Subsection 2-3. Statement of Objectives ................................... 2-1
Subsection 2-4. Redevelopment Plan Overview .............................. 2-1
Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2
Subsection 2-6. Classification of the District................................. 2-2
Subsection 2-7. Duration and First Year of Tax Increment of the District........... 2-4
Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements ................ 2-4
Subsection 2-9. Budgeted Sources of Revenue/Bonds to be Issued . ............. 2-6
Subsection 2-10. Uses of Funds ........................................... 2-7
Subsection 2-11. Fiscal Disparities Election.................................. 2-7
Subsection 2-12. Business Subsidies....................................... 2-8
Subsection 2-13. County Road Costs ....................................... 2-9
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions ................ 2-10
Subsection 2-15. Supporting Documentation ................................ 2-12
Subsection 2-16. Definition of Tax Increment Revenues ....................... 2-12
Subsection 2-17. Modifications to the District................................ 2-12
Subsection 2-18. Administrative Expenses .................................. 2-13
Subsection 2-19. Limitation of Increment ................................... 2-13
Subsection 2-20. Use of Tax Increment .................................... 2-14
Subsection 2-21. Excess Increments ...................................... 2-15
Subsection 2-22. Requirements for Agreements with the Developer .............. 2-15
Subsection 2-23. Assessment Agreements ................................. 2-15
Subsection 2-24. Administration of the District ............................... 2-16
Subsection 2-25. Annual Disclosure Requirements ........................... 2-16
Subsection 2-26. Reasonable Expectations ................................. 2-16
Subsection 2-27. Other Limitations on the Use of Tax Increment . ................ 2-16
Subsection 2-28. Summary.............................................. 2-17
Appendix A
Project Description ...................................................... A-1
Appendix B
Map of the Southeast Edina Redevelopment Project Area and the 50th and France 2 TIF District
..................................................................... B-1
Appendix C
Description of Property to be Included in the District ............................ C-1
Appendix D
Estimated Cash Flow for the District ........................................ D-1
Appendix E
Minnesota Business Assistance Form ....................................... E-1
Appendix F
Redevelopment Qualifications for the District .................................. F-1
Appendix G
Findings Including But/For Qualifications..................................... G-1
Section 1 - Modification to the Redevelopment Plan
for the Southeast Edina Redevelopment Project Area
Foreword
The following text represents a Modification to the Redevelopment Plan for the Southeast Edina
Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth
in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. Generally, the substantive
changes include the establishment of 50th and France 2 Tax Increment Financing District.
Section 1 - Municipal Action Taken
Based upon the statutory authority described in the Redevelopment Plan, the public purpose findings by the
City Council and for the purpose of fulfilling the City’s development objects as set forth in the
Redevelopment Plan, the City Council has created, established and designated the Southeast Edina
Redevelopment Plan pursuant to and in accordance with the requirements of Minnesota Statutes, Section
469.001 to 469.047.
The original and amended Southeast Edina Redevelopment Plan documents and amendments have designated
the Southeast Edina Redevelopment Plan as a redevelopment project and also a tax increment financing plan
for tax increment districts created prior to 1988. The Centennial Lakes Tax Increment Financing District was
created in 1988 pursuant to Tax Increment Financing Plan 88-1, which was subsequently renamed the
Centennial Lakes Tax Increment District and referred to by Hennepin County as District #1203 and #1249.
For purposes of clarification, this modification will refer to the Southeast Edina Redevelopment Plan as the
Southeast Edina Redevelopment Project Area Plan pursuant to Minnesota Statutes 469.002. The following
municipal action has been taken with regard to the Southeast Edina Redevelopment Project Area Plan:
September 29, 1977: The Housing and Redevelopment Authority of Edina (the “HRA”) approved the
Southeast Edina Redevelopment Project Area Plan.
October 5, 1981: The Southeast Edina Redevelopment Project Area Plan was amended to identify project
costs and bonded indebtedness incurred to finance those costs.
May 6, 1985: The HRA and the City approved an amendment to the Southeast Edina Redevelopment Project
Area Plan which includes the establishment of an interest reduction program and enlarges the project area to
include the “1985 Project Area.”
August 19, 1985: The HRA and the City approve d the First Amendment to the 1985 Amendment to the
Southeast Edina Redevelopment Project Area Plan to enlarge the 1985 Project Area and to authorize the
issuance of additional bonds to acquire land within the enlarged 1985 Project Area.
1987: The HRA and City approved the 1987 Amendments to the Southeast Edina Redevelopment Plan to
enlarge the project area to include the 1987 Project Area.
1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan that
provide an Interest Reduction Program in the amount of $2,500,000 to assist in the financing and construction
of housing units, and authorize the HRA and City to incur bonded indebtedness.
February 21, 2012: The HRA and City expand the Southeast Edina Project Area.
Edina Housing and Redevelopment Authority
Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-1
April 17, 2012: The HRA and City establish the Southdale 2 Tax Increment Financing District.
February 18, 2014: The HRA and City establish the Pentagon Park Tax Increment Financing District.
March 2, 2016: The HRA and City establish the Grandview 2 Tax Increment Financing District.
April 5, 2016: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax
Increment Financing District and establish the 66 West Tax Increment Financing District.
(AS MODIFIED JUNE 20, 2017)
June 20, 2017: The HRA and City are establishing the 50th and France 2 Tax Increment Financing
District.
For further information, a review of the Redevelopment Plan for the Southeast Edina Redevelopment Project
Area is recommended. It is available from the HRA Executive Director at the City of Edina. Other relevant
information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts
located within the Southeast Edina Redevelopment Project Area.
Edina Housing and Redevelopment Authority
Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-2
Section 2 - Tax Increment Financing Plan
for the 50th and France 2 Tax Increment Financing District
Subsection 2-1. Foreword
The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina (the "City"), staff and
consultants have prepared the following information to establish the 50th and France 2 Tax Increment
Financing District (the "District"), a redevelopment tax increment financing district, located in the Southeast
Edina Redevelopment Project Area.
Subsection 2-2. Statutory Authority
Within the City, there exist areas where public involvement is necessary to cause development or
redevelopment to occur or to promote a greater degree of development that allows City objectives to be
fulfilled. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes
("M.S."), Sections 469.001 to 469.047, inclusive, as amended, and M.S., Sections 469.174 to 469.1794,
inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs
related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant
information is contained in the Modification to the Redevelopment Plan for the Southeast Edina
Redevelopment Project Area, adopted September 29, 1977, and modified from time to time.
Subsection 2-3. Statement of Objectives
The District currently consists of nine parcels of land and adjacent and internal rights-of-way. As a part of
the City’s vision for the 50th and France Commercial Area, the District is being created to facilitate the
redevelopment of existing HRA-owned property which is determined to be underutilized and consisting of
obsolete structures, vacant areas, and outdated and inadequate public infrastructure. The proposed
redevelopment contains new construction of approximately 110 unit apartment building and 32,500 square
feet of commercial elements in the City as well as auxiliary infrastructure. Please see Appendix A for further
description of the anticipated project. The HRA is considering an agreement with Edina Market Street LLC
as the developer at the time of preparation of this TIF Plan. Redevelopment activities are proposed to begin
in 2018 with completion in 2019. This TIF Plan is expected to achieve many of the objectives outlined in
Subsection 3-4 of the Redevelopment Plan for the Southeast Edina Redevelopment Project Area.
The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude
the undertaking of other qualified development or redevelopment activities. These activities are anticipated
to occur over the life of the Southeast Edina Redevelopment Project Area and the District.
Subsection 2-4. Redevelopment Plan Overview
Pursuant to the Redevelopment Plan and authorizing state statutes, the HRA or City is authorized to undertake
the following activities within the District:
1. Property to be Acquired - The HRA or City currently owns nine parcels of property within
the District and is further described in this TIF Plan.
2. Relocation - Relocation services, to the extent required by law, are available pursuant to
M.S., Chapter 117 and other relevant state and federal laws.
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-1
3. Upon approval of a developer's plan relating to the project and completion of the necessary
legal requirements, the HRA or City may sell to a developer selected properties that it may
acquire within the District or may lease land or facilities to a developer.
4. The HRA or City may perform or provide for some or all necessary acquisition, construction,
relocation, demolition, and required utilities and public street work within the District.
Subsection 2-5. Description of Property in the District and Property To Be Acquired
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information
on the location of the District.
The HRA or City currently owns the property to be included in the District.
Subsection 2-6. Classification of the District
The HRA and City, in determining the need to create a tax increment financing district in accordance with
M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is a
redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1) as defined below:
(a) "Redevelopment district" means a type of tax increment financing district consisting of a project,
or portions of a project, within which the authority finds by resolution that one or more of the
following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets,
utilities, paved or gravel parking lots or other similar structures and more than 50 percent
of the buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance;
(2) The property consists of vacant, unused, underused, inappropriately used, or infrequently
used rail yards, rail storage facilities or excessive or vacated railroad rights-of-way;
(3) tank facilities, or property whose immediately previous use was for tank facilities, as defined
in Section 115C, Subd. 15, if the tank facility:
(i) have or had a capacity of more than one million gallons;
(ii) are located adjacent to rail facilities; or
(iii)have been removed, or are unused, underused, inappropriately used or infrequently
used; or
(4) a qualifying disaster area, as defined in Subd. 10b.
M.S., Section 469.174, Subd. 10(a)(1) continued:
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in
structural elements or a combination of deficiencies in essential utilities and facilities, light and
ventilation, fire protection including adequate egress, layout and condition of interior partitions, or
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-2
similar factors, which defects or deficiencies are of sufficient total significance to justify substantial
renovation or clearance.
(c) A building is not structurally substandard if it is in compliance with the building code applicable
to new buildings or could be modified to satisfy the building code at a cost of less than 15
percent of the cost of constructing a new structure of the same square footage and type on the
site. The municipality may find that a building is not disqualified as structurally substandard
under the preceding sentence on the basis of reasonably available evidence, such as the size,
type, and age of the building, the average cost of plumbing, electrical, or structural repairs or
other similar reliable evidence. The municipality may not make such a determination without
an interior inspection of the property, but need not have an independent, expert appraisal
prepared of the cost of repair and rehabilitation of the building. An interior inspection of the
property is not required, if the municipality finds that (1) the municipality or authority is unable
to gain access to the property after using its best efforts to obtain permission from the party that
owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion
that the building is structurally substandard.
(d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the
finding under paragraph (a) or by the improvement described in paragraph (e) if all of the
following conditions are met:
(1) the parcel was occupied by a substandard building or met the requirements of paragraph
(e), as the case may be, within three years of the filing of the request for certification of the
parcel as part of the district with the county auditor;
(2) the substandard building or the improvements described in paragraph (e) were demolished
or removed by the authority or the demolition or removal was financed by the authority or
was done by a developer under a development agreement with the authority;
(3) the authority found by resolution before the demolition or removal that the parcel was
occupied by a structurally substandard building or met the requirement of paragraph (e) and
that after demolition and clearance the authority intended to include the parcel within a
district; and
(4) upon filing the request for certification of the tax capacity of the parcel as part of a district,
the authority notifies the county auditor that the original tax capacity of the parcel must be
adjusted as provided by § 469.177, subdivision 1, paragraph (f).
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved
or gravel parking lots or other similar structures unless 15 percent of the area of
M.S., Section 469.174, Subd. 10(a)(1) continued:
the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar
structures.
(f) For districts consisting of two or more noncontiguous areas, each area must qualify as a
redevelopment district under paragraph (a) to be included in the district, and the entire area of
the district must satisfy paragraph (a).
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-3
In meeting the statutory criteria the HRA and City rely on the following facts and findings:
• The District is a redevelopment district consisting of nine parcels.
• An inventory shows that parcels consisting of more than 70 percent of the area in the District are
occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures.
• An inspection of the buildings located within the District finds that more than 50 percent of the buildings
are structurally substandard as defined in the TIF Act. (See Appendix F).
Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that
qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes
payable in any of the five calendar years before the filing of the request for certification of the District.
Subsection 2-7. Duration and First Year of Tax Increment of the District
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax
increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b.,
the duration of the District will be 25 years after receipt of the first increment by the HRA or City (a total of
26 years of tax increment collection). The HRA or City elects to receive the first tax increment in 2020,
which is no later than four years following the year of approval of the District.
Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or
other changes, would terminate after 2045, or when the TIF Plan is satisfied. The HRA or City reserves the
right to decertify the District prior to the legally required date.
Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements
Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity
(ONTC) as certified for the District will be based on the market values placed on the property by the assessor
in 2016 for taxes payable 2017.
Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 2020) the amount by which the original value has increased or decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments, negotiated or court-ordered abatements;
4. Change in the use of the property and classification;
5. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no
value will be captured and no tax increment will be payable to the HRA or City.
The original local tax rate for the District will be the local tax rate for taxes payable 2017, assuming the
request for certification is made before June 30, 2017. The ONTC and the Original Local Tax Rate for the
District appear in the table below.
Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated
Captured Net Tax Capacity (CTC) of the District, within the Southeast Edina Redevelopment Project Area,
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-4
upon completion of the projects within the District, will annually approximate tax increment revenues as
shown in the table below. The HRA and City request 100 percent of the available increase in tax capacity
for repayment of its obligations and current expenditures, beginning in the tax year payable 2020. The Project
Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed.
Project Estimated Tax Capacity upon Completion (PTC) $1,558,128
Original Estimated Net Tax Capacity (ONTC) $72,509
Fiscal Disparities Contribution $147,572
Estimated Captured Tax Capacity (CTC) $1,338,047
Original Local Tax Rate 1.18213 Pay 2017
Estimated Annual Tax Increment (CTC x Local Tax Rate) $1,581,746
Percent Retained by the HRA 100%
Tax capacity includes a 3% inflation factor for the duration of the District. The tax capacity included in thischart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one isestimated to be $744,171.
Pursuant to M.S., Section 469.177, Subd. 4, the HRA shall, after a due and diligent search, accompany its
request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S.,
Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which
building permits have been issued during the eighteen (18) months immediately preceding approval of the
TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase
the original net tax capacity of the District by the net tax capacity of improvements for which a building
permit was issued.
The City has reviewed the area to be included in the District and found no parcels for which building
permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the
City.
Subsection 2-9. Budgeted Sources of Revenue/Bonds to be Issued
The total estimated tax increment revenues for the District are calculated in Appendix D and are shown in
the table below:
SOURCES OF FUNDS TOTAL
Tax Increment $28,519,768
Interest $2,851,977
TOTAL $31,371,745
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax
increments. The HRA or City reserves the right to incur bonds or other indebtedness to help achieve the
objectives of the TIF Plan. As currently proposed, the projects within the District will be financed by a pay-
as-you-go note issued to reimburse the Developer for the funding of qualified redevelopment costs. Any
refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-5
does not obligate the HRA or City to incur debt. The HRA or City will issue bonds or incur other debt only
upon the determination that such action is in the best interest of the City.
The HRA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments
from the District in a maximum principal amount of $16,692,088. Such bonds may be in the form of pay-as-
you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total
bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval.
Further information can be found in Appendix D.
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a proposal to facilitate the redevelopment and construction
of approximately 110 housing units and 32,500 square feet of retail space. The HRA and City have
determined that it will be necessary to provide assistance to the project(s) for certain District costs, as
described.
The HRA has studied the feasibility of the development or redevelopment of property in and around the
District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan
authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate
of public costs and uses of funds associated with the District is outlined in the table below. These estimates
establish the maximum amount permitted to be expended, but the City/HRA is not obligated to expend this
full amount.
USES OF TAX INCREMENT FUNDS TOTAL
Land/Building Acquisition $6,100,000
Site Improvements/Preparation $1,600,000
Utilities $1,900,000
Other Qualifying Improvements $4,240,111
Administrative Costs (up to 10%)$2,851,977
PROJECT COST TOTAL $16,692,088
Interest $14,679,657
PROJECT AND INTEREST COSTS TOTAL $31,371,745
The project cost utilizing tax increment, including financing costs (interest) listed in the table above does not
exceed the total projected tax increments for the District as shown in Subsection 2-9.
Estimated costs associated with the District are subject to change among categories without a modification
to this TIF Plan as permitted by M.S. Section 469.175, Subd. 4. The cost of all activities to be considered for
tax increment financing will not exceed, without formal modification, the budget above pursuant to the
applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25 percent of
the tax increment paid by property within the District will be spent on activities related to development or
redevelopment outside of the District but within the boundaries of the Southeast Edina Redevelopment
Project Area, (including administrative costs, which are considered to be spent outside of the District) subject
to the limitations as described in this TIF Plan.
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-6
Subsection 2-11. Fiscal Disparities Election
Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal
disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are
followed, the following method of computation shall apply:
(1) The original net tax capacity shall be determined before the application of the fiscal disparity
provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal
disparity commercial-industrial net tax capacity increase between the original year and the
current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section
276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax
capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity
and no tax increment determination. Where the original tax capacity is less than the current tax
capacity, the difference between the original net tax capacity and the current net tax capacity
is the captured net tax capacity. This amount less any portion thereof which the authority has
designated, in its tax increment financing plan, to share with the local taxing districts is the
retained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured net tax capacity of the authority from the
net tax capacity of the local taxing districts in determining local taxing district tax rates. The
local tax rates so determined are to be extended against the retained captured net tax capacity
of the authority as well as the net tax capacity of the local taxing districts. The tax generated by
the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate
to the retained captured net tax capacity of the authority is the tax increment of the authority.
The City chooses to calculate fiscal disparities by clause b.
According to M.S., Section 469.177, Subd. 3:
(c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or
(b) shall remain the same for the duration of the district, except that the governing body may
elect to change its election from the method of computation in paragraph (a) to the method in
paragraph (b).
Subsection 2-12. Business Subsidies
M.S. Section 116J.993 to 116J.995 defines a business subsidy as a “grant, contribution of personal property,
real property, infrastructure, the principal amount of a loan at rates below those commercially available to
the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan,
lease or other obligation, or any preferential use of government facilities given to a business.” Also included
in the definition are many forms of economic assistance. Some forms of assistance, such as tax increment,
are specifically excluded from business subsidy requirements. Pursuant to M.S., Section 116J.993, Subd. 3,
the following forms of financial assistance are not considered a business subsidy:
(1) A business subsidy of less than $150,000;
(2) Assistance that is generally available to all businesses or to a general class of similar businesses,
such as a line of business, size, location, or similar general criteria;
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-7
(3) Public improvements to buildings or lands owned by the state or local government that serve a
public purpose and do not principally benefit a single business or defined group of businesses at
the time the improvements are made;
(4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3;
(5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing
it up to code and assistance provided for designated historic preservation districts, provided that
the assistance is equal to or less than 50% of the total cost;
(6) Assistance to provide job readiness and training services if the sole purpose of the assistance is
to provide those services;
(7) Assistance for housing;
(8) Assistance for pollution control or abatement, including assistance for a tax increment financing
hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23;
(9) Assistance for energy conservation;
(10) Tax reductions resulting from conformity with federal tax law;
(11) Workers' compensation and unemployment compensation;
(12) Benefits derived from regulation;
(13) Indirect benefits derived from assistance to educational institutions;
(14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;
(15) Assistance for a collaboration between a Minnesota higher education institution and a business;
(16) Assistance for a tax increment financing soils condition district as defined under M.S., Section
469.174, Subd. 19;
(17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation
is 70 percent or more of the assessor's current year's estimated market value;
(18) General changes in tax increment financing law and other general tax law changes of a principally
technical nature;
(19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
(20) Funds from dock and wharf bonds issued by a seaway port authority;
(21) Business loans and loan guarantees of $150,000 or less;
(22) Federal loan funds provided through the United States Department of Commerce, Economic
Development Administration; and
(23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to
valuation under Minnesota Rules, chapter 8100.
The HRA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance
under this TIF Plan does not fall under any of the above exemptions.
Subsection 2-13. County Road Costs
Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the HRA or City to pay for all or
part of the cost of county road improvements if the proposed development to be assisted by tax increment
will, in the judgment of the county, substantially increase the use of county roads requiring construction of
road improvements or other road costs and if the road improvements are not scheduled within the next five
years under a capital improvement plan or within five years under another county plan.
The county roads in the vicinity of the District include France Avenue (County Road 17) and the portion of
50th St. W (County Road 21) located in Minneapolis, east of France Ave. The HRA and the City are aware
that the county could claim that tax increment should be used for county roads, even after the public hearing.
If the county elects to use increments to improve county roads, it must notify the HRA or City within forty-
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-8
five days of receipt of this TIF Plan. In the opinion of the HRA and City and consultants, the proposed
development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan
was not forwarded to the county 45 days prior to the public hearing.
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF
Plan would occur without the creation of the District. However, the HRA or City has determined that such
development or redevelopment would not occur "but for" tax increment financing and that, therefore, the
fiscal impact on other taxing jurisdictions is $0.
The estimated fiscal impact of the District would be as follows if the "but for" test was not met:
IMPACT ON TAX BASE IF “BUT FOR” NOT MET
2016/Pay 2017
Total Net
Tax Capacity
Estimated Captured
Tax Capacity (CTC)
Upon Completion
Percent of CTC
to Entity Total
Hennepin County 1,573,060,731 1,338,047 0.0851%
City of Edina 116,854,423 1,338,047 1.1451%
Edina ISD No. 273 97,015,332 1,338,047 1.3792%
IMPACT ON TAX RATES IF “BUT FOR” NOT MET
Pay 2017
Extension Rates
Percent
of Total
Rate
CTC
Potential
Annual
Taxes
Hennepin County 0.440870 37.29% 1,338,047 589,905
City of Edina 0.282710 23.92% 1,338,047 378,279
Edina ISD No. 273 0.347980 29.44% 1,338,047 465,614
Other 0.110570 9.35%1,338,047 147,948
Total 1.182130 100.00%1,581,747
The estimates listed above display the captured tax capacity (CTC) when all construction anticipated in
Appendix A is completed. The tax rate used for calculations is the actual Pay 2017 rate as obtained from
Hennepin County. The total net capacity for the entities listed above are based on actual Pay 2017 figures.
The District will be certified under the actual Pay 2017 rates, assuming the request for certification is made
prior to June 30, 2017.
Pursuant to M.S. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be
generated over the life of the District is $28,519,768;
(2) Probable impact of the District on City-provided services and ability to issue debt. Based upon input
from the Edina Police Department, an impact of the District on police protection is not expected. The
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-9
City Police Department does track all calls for service including property-type calls and crimes. With
any addition of new residents or businesses, police calls for service will be increased. New
developments add an increase in traffic and additional overall demands to the call load. The City does
not expect that the proposed development, in and of itself, will necessitate new capital investment.
Based upon input from the Edina Fire Department, the probable impact of the District on fire
protection is not expected to be significant. The City expects costs of inspection and that the
development to generate a minor increase in EMS calls, depending on the occupancy mix of the
residential units. Typically new buildings compliant with building and fire codes generate few fire
calls, if any, and are of superior construction beneficial to the mission of the Fire Department.
Based upon input from the Edina Engineering Department, the impact of the District on public
infrastructure is expected to be moderate. The redevelopment is not expected to require additional
infrastructure to address its impact to traffic movement in the area. Aging parking infrastructure will
be replaced with a pedestrian plaza and pedestrian-oriented woonerf, offset by public investment of
$11 million in parking infrastructure expansion to the District’s North Ramp. The operating costs
from changes in configuration of the publicly maintained spaces resulting from the redevelopment
are anticipated to remain neutral or slightly reduced. Based on the approved development plans,
costs associated with street maintenance, sweeping, plowing, lighting and sidewalks are also
expected to be neutral. The current infrastructure for sanitary sewer, storm sewer and water will be
able to handle additional volume generated from the proposed development. The development in the
District is expected to contribute an estimated $740,350 in combined City and Metropolitan Council
sanitary sewer (SAC) and water (WAC) connection fees.
It is not anticipated that there will be any general obligation debt issued in relation to this project,
therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. M.S. Section 469.175 Subd.
2 (b) requires the TIF Plan to calculate “the estimated amount of tax increments over the life of the
District that would be attributable to school district levies, assuming the school district’s share of
the total local tax rate for a taxing jurisdictions remained the same.” The amount of tax increments
over the life of the district that would be attributable to school district levies, assuming the school
district’s share of the total local tax rate for all taxing jurisdictions remained the same, is $8,396,220.
The amount is calculated by multiplying the total estimated increment of $28, 519,768 by the percent
of the total tax rate attributable to the school district (based on the Pay 2017 tax rate) of 29.44%.
(4) Estimated amount of tax increment attributable to county levies. M.S., Section 469.175 Subd. 2(b)
requires the TIF Plan to calculate “the estimated amount of tax increments over the life of the District
that would be attributable to county levies, assuming the county’s share of the total local tax rate for
all taxing jurisdictions remained the same.” The amount of tax increments over the life of the District
that would be attributable to county levies, assuming the county's share of the total local tax rate for
all taxing jurisdictions remained the same, is $10,635,021. The amount is calculated by multiplying
the total estimated increment of $28,519,768 by the percent of the total tax rate attributable to the
county (based on the Pay 2017 tax rate) of 37.29%;
(5) Additional information requested by the county or school district. The City is not aware of any
standard questions in a county or school district written policy regarding tax increment districts and
impact on county or school district services. The county or school district must request additional
information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax
increment financing plan.
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-10
At this time, no requests for additional information from the county or school district regarding the
proposed development for the District have been received.
Subsection 2-15. Supporting Documentation
Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and
description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd.
3, clause (b)(2) and the findings that are required in the resolution approving the District. Following is a list
of reports and studies on file at the City that support the HRA and City's findings:
• Redevelopment Qualifications Report: Stantec Consulting, April 2017.
•50th and France Transportation Study: SRF Consulting Group, January 20, 2017.
• Edina Colalborative Development Transportation Study: SRF Consulting Group, March 31, 2017
•50th St. and France Avenue Neighborhood Study: SRF Consulting Group, March 31, 2017.
Subsection 2-16. Definition of Tax Increment Revenues
Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing
district include all of the following potential revenue sources:
1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S.,
Section 469.177;
2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was
purchased by the authority with tax increments;
3. Principal and interest received on loans or other advances made by the authority with tax
increments;
4. Interest or other investment earnings on or from tax increments;
5. Repayments or return of tax increments made to the Authority under agreements for districts for
which the request for certification was made after August 1, 1993.
Subsection 2-17. Modifications to the District
In accordance with M.S., Section 469.175, Subd. 4, any:
1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the
requirements of M.S., Section 469.175, Subd. 4(e);
2. Increase in amount of bonded indebtedness to be incurred;
3. A determination to capitalize interest on debt if that determination was not a part of the original TIF
Plan;
4. Increase in the portion of the captured net tax capacity to be retained by the Authority;
5. Increase in the estimate of the cost of the District, including administrative expenses, that will be
paid or financed with tax increment from the District; or
6. Designation of additional property to be acquired by the Authority,
shall be approved upon the notice and after the discussion, public hearing and findings required for approval
of the original TIF Plan.
Pursuant to M.S. Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not
be enlarged after five years following the date of certification of the original net tax capacity by the county
auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that
the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10, must be documented in
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-11
writing and retained. The requirements of this paragraph do not apply if (1) the only modification is
elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated
from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax
capacity or (B) the HRA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax
capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the
District.
The HRA or City must notify the County Auditor of any modification to the District. Modifications to the
District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF
Plan.
Subsection 2-18. Administrative Expenses
In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the
HRA or City, other than:
1. Amounts paid for the purchase of land;
2. Amounts paid to contractors or others providing materials and services, including architectural and
engineering services, directly connected with the physical development of the real property in the
District;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the
District;
4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to M.S., Section 469.178; or
5. Amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in clauses (1) to (3).
Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants,
and planning or economic development consultants. For districts for which certification was requested after
July 31, 2001, pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized
and documented administrative expenses for the District up to but not to exceed 10 percent of the total
estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by
M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less.
Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual
administrative expenses incurred in connection with the District and are not subject to the percentage limits
of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the
year following the year the expenses were incurred.
Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently 0.36
percent) of any increment distributed to the HRA or City and the County Treasurer shall pay the amount
deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be
appropriated to the State Auditor for the cost of financial reporting of tax increment financing information
and the cost of examining and auditing authorities' use of tax increment financing. This amount may be
adjusted annually by the Commissioner of Revenue.
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-12
Subsection 2-19. Limitation of Increment
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District
may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow
account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or
redemption date.
Pursuant to M.S., Section 469.176, Subd. 6:
if, after four years from the date of certification of the original net tax capacity of the tax increment
financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of
property or other site preparation, including qualified improvement of a street adjacent to a parcel
but not installation of utility service including sewer or water systems, has been commenced on a
parcel located within a tax increment financing district by the authority or by the owner of the parcel
in accordance with the tax increment financing plan, no additional tax increment may be taken from
that parcel, and the original net tax capacity of that parcel shall be excluded from the original net
tax capacity of the tax increment financing district. If the authority or the owner of the parcel
subsequently commences demolition, rehabilitation or renovation or other site preparation on that
parcel including qualified improvement of a street adjacent to that parcel, in accordance with the
tax increment financing plan, the authority shall certify to the county auditor that the activity has
commenced and the county auditor shall certify the net tax capacity thereof as most recently certified
by the commissioner of revenue and add it to the original net tax capacity of the tax increment
financing district. The county auditor must enforce the provisions of this subdivision. The authority
must submit to the county auditor evidence that the required activity has taken place for each parcel
in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following
the year in which the parcel was certified as included in the district. For purposes of this subdivision,
qualified improvements of a street are limited to (1) construction or opening of a new street, (2)
relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street.
The HRA or City or a property owner must improve parcels within the District by approximately June 2021
and report such actions to the County Auditor.
Subsection 2-20. Use of Tax Increment
The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable
property located in the District for the following purposes:
1. To pay the principal of and interest on bonds issued to finance a project;
2. To finance, or otherwise pay public redevelopment costs of the the Southeast Edina Redevelopment
Project Area pursuant to M.S., Sections 469.001 to 469.047;
3. To pay for project costs as identified in the budget set forth in the TIF Plan;
4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4;
5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the
HRA or City or for the benefit of the Southeast Edina Redevelopment Project Area by a developer;
6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing
the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to
M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and
7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on
the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152
through 469.165, and/or M.S., Sections 469.178.
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-13
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other
purposes prohibited by M.S., Section 469.176, Subd. 4.
Tax increments generated in the District will be paid by Hennepin County to the HRA for the Tax Increment
Fund of said District. The HRA or City will pay to the developer(s) annually an amount not to exceed an
amount as specified in a developer's agreement to reimburse the costs of land acquisition, public
improvements, demolition and relocation, site preparation, other qualifying improvements, and
administration. Remaining increment funds will be used for HRA or City administration (up to 10 percent)
and for the costs of public improvement activities outside the District.
Subsection 2-21. Excess Increments
Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the
following:
1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment for any outstanding bonds;
3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or
4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in
proportion to their local tax rates.
Pursuant to M.S., Section 469.176, Subd. 2, “The authority shall annually determine the amount of excess
increments for a district, if any. This determination must be based on the tax increment financing plan in
effect on December 31 of the year and the increment and other revenues received as of December 31 of the
year. The authority must spend or return the excess increments under paragraph (c) within nine months after
the end of the year.” In addition, the HRA or City may, subject to the limitations set forth herein, choose to
modify the TIF Plan in order to finance additional public costs in the Southeast Edina Redevelopment Project
Area or the District.
Subsection 2-22. Requirements for Agreements with the Developer
The HRA or City will review any proposal for private development within the District to determine its
conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate
this effort, the following documents may be requested for review and approval: site plan, construction,
mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage
system plan, and any other drawings or narrative deemed necessary by the HRA or City to demonstrate the
conformance of the development with City plans and ordinances. The HRA or City may also use the
Agreements to address other issues related to the development.
Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be
acquired in the District as set forth in the TIF Plan shall at any time be owned by the HRA or City as a result
of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments
from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the HRA
or City concluded an agreement for the development or redevelopment of the property acquired and which
provides recourse for the HRA or City should the development or redevelopment not be completed.
Subsection 2-23. Assessment Agreements
Pursuant to M.S., Section 469.177, Subd. 8, the HRA or City may enter into a written assessment agreement
in recordable form with the developer of property within the District which establishes a minimum market
value of the land and completed improvements for the duration of the District. The assessment agreement
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-14
shall be presented to the County Assessor who shall review the plans and specifications for the improvements
to be constructed, review the market value previously assigned to the land upon which the improvements are
to be constructed and, so long as the minimum market value contained in the assessment agreement appears,
in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the
minimum market value agreement.
Subsection 2-24. Administration of the District
Administration of the District will be handled by the HRA Executive Director.
Subsection 2-25. Annual Disclosure Requirements
Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the HRA or City must undertake financial reporting
for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor
on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement
shall be published in a newspaper of general circulation in the City on or before August 15.
If the City fails to make a disclosure or submit a report containing the information required by M.S., Section
469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the
distribution of tax increment from the District.
Subsection 2-26. Reasonable Expectations
As required by the TIF Act, in establishing the District, the determination has been made that the anticipated
development would not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value of the site that could reasonably be expected
to occur without the use of tax increment financing would be less than the increase in the market value
estimated to result from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the District permitted by the TIF Plan. In making said determination,
reliance has been placed upon written representation made by the developer to such effects, and upon HRA
and City staff’s awareness of the feasibility of developing the project site(s) within the District. A
comparative analysis of estimated market values both with and without establishment of the District and the
use of tax increments has been performed as described above. Such analysis is included with the cashflow
in Appendix D, and indicates that the increase in estimated market value of the proposed development (less
the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the
District and the use of tax increments.
Subsection 2-27. Other Limitations on the Use of Tax Increment
1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF
Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the the
Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047. Tax
increments may not be used to circumvent existing levy limit law. No tax increment may be used for the
acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and
regularly for conducting the business of a municipality, county, school district, or any other local unit of
government or the state or federal government. This provision does not prohibit the use of revenues
derived from tax increments for the construction or renovation of a parking structure.
2. Pooling Limitations. At least 75 percent of tax increments from the District must be expended on
activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-15
activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not
more than 25 percent of said tax increments may be expended, through a development fund or otherwise,
on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced
bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they
were solely for activities outside of the District.
3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall
be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule
set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year
following certification of the District, 75 percent of said tax increments that remain after expenditures
permitted under said five year rule must be used only to pay previously committed expenditures or credit
enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5.
4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a
redevelopment district must be used to finance the cost of correcting conditions that allow designation
of redevelopment and renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs
include, but are not limited to, acquiring properties containing structurally substandard buildings or
improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary
to provide a site of sufficient size to permit development, demolition and rehabilitation of structures,
clearing of the land, the removal of hazardous substances or remediation necessary for development of
the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated
administrative expenses of the HRA or City, including the cost of preparation of the development action
response plan, may be included in the qualifying costs.
Subsection 2-28. Summary
The Edina Housing and Redevelopment Authority is establishing the District to preserve and enhance the tax
base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the
District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113,
telephone (651) 697-8500.
Edina Housing and Redevelopment Authority
Tax Increment Financing Plan for the 50th and France 2 Tax Increment Financing District 2-16
Appendix A
Project Description
In 2016, the HRA released a request for development proposals seeking to revitalize and redevelop an
underutilized section of the 50th and France Commercial Area consisting of HRA-owned property and aging
public infrastructure. As a result, the HRA accepted the proposal of Edina Market Street LLC to work toward
a purchase agreement for a portion of the land in the District and to redevelop the site to complement the
City’s re-investment of an estimated $11 million expansion to the city-owned North Parking Ramp.
The 50 th and France 2 Tax Increment District is a significant redevelopment effort of the City of Edina. The
redevelopment cost is estimated to be in excess of $74 million. The project focuses on revitalizing the site
of the City’s underutilized property consisting of substandard vacant commercial property and aging public
parking structure. The redevelopment envisions new construction of a 110-unit apartment building and
32,500 square feet of mixed commercial elements supplemented with a public plaza and public underground
parking.
The redevelopment is expected to start as early as the beginning of 2018 and occur over the next two years
reaching initial occupancy in late 2019. Tax Increment from the District will be utilized in conjunction with
potential funding from the Metropolitan Council, the Department of Employment and Economic
Development, and Hennepin County to provide financing for the estimated $74 million private redevelopment
project. The HRA proposes to issue a pay-as-you-go TIF Note to the developer to reimburse qualifying costs
necessary to facilitate the redevelopment.
Appendix A-1
Appendix B
Map of the Southeast Edina Redevelopment Project Area and the 50th and France 2 TIF District
Appendix B-1
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Engineering Dept.
May, 2017
Southeast Edina Redevelopment Project Area
and 50th and France 2 TIF District
Project Area
50th and France 2 TIF District
50th and France 2
TIF District
W 50TH ST
MARK ET ST
F R A N C E A
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1802 824140 123 1802 824140 023
1802 824140 034
/Engineer in g De pt.May, 2017
City of Edina50th and France 2 Tax Increment Financing Redevelopment District
50th and France 2 TIF District
Appendix C
Description of Property to be Included in the District
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed below.
Parcel Numbers Address Owner
18-028-24-14-0023 3925 49 ½ St. W. Edina HRA
18-028-24-14-0026 3930 49 ½ St. W Edina HRA
18-028-24-14-0030 3936 49 ½ St. W. Edina HRA
18-028-24-14-0032 Unassigned Edina HRA
18-028-24-14-0034 3940 49 ½ St. W. Edina HRA
18-028-24-14-0035 3944 49 ½ St. W. Edina HRA
18-028-24-14-0036 Unassigned Edina HRA
18-028-24-14-0120 Unassigned Edina HRA
18-028-24-14-0123 Unassigned Edina HRA
The property within the TIF District will be undergoing a platting process in the close of 2017 to facilitate
the new use of the property and vertical subdivision.
Appendix C-1
Appendix D
Estimated Cash Flow for the District
Appendix D-1
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3
)
6
5
0
,
3
5
9
1
1
8
.
2
1
3
%
76
8
,
8
0
9
3
8
4
,
4
0
4
(
1
,
3
8
4
)
(
3
8
,
3
0
2
)
3
4
4
,
7
1
9
1
,
4
3
0
,
7
8
4
2
.
5
2
0
2
2
0
8
/
0
1
/
2
2
10
0
%
7
8
9
,
4
9
1
(
7
2
,
5
0
9
)
(
6
6
,
6
2
3
)
6
5
0
,
3
5
9
1
1
8
.
2
1
3
%
76
8
,
8
0
9
38
4
,
4
0
4
(
1
,
3
8
4
)
(
3
8
,
3
0
2
)
3
4
4
,
7
1
9
1
,
7
0
2
,
9
0
8
3
2
0
2
2
0
2
/
0
1
/
2
3
10
0
%
8
1
3
,
1
7
5
(
7
2
,
5
0
9
)
(
6
9
,
1
1
7
)
6
7
1
,
5
4
9
1
1
8
.
2
1
3
%
79
3
,
8
5
9
3
9
6
,
9
2
9
(
1
,
4
2
9
)
(
3
9
,
5
5
0
)
3
5
5
,
9
5
0
1
,
9
7
5
,
7
1
4
3
.
5
2
0
2
3
0
8
/
0
1
/
2
3
10
0
%
8
1
3
,
1
7
5
(
7
2
,
5
0
9
)
(
6
9
,
1
1
7
)
6
7
1
,
5
4
9
1
1
8
.
2
1
3
%
79
3
,
8
5
9
39
6
,
9
2
9
(
1
,
4
2
9
)
(
3
9
,
5
5
0
)
3
5
5
,
9
5
0
2
,
2
4
0
,
5
7
4
4
2
0
2
3
0
2
/
0
1
/
2
4
10
0
%
8
3
7
,
5
7
1
(
7
2
,
5
0
9
)
(
7
1
,
6
8
7
)
6
9
3
,
3
7
6
1
1
8
.
2
1
3
%
81
9
,
6
6
0
4
0
9
,
8
3
0
(
1
,
4
7
5
)
(
4
0
,
8
3
5
)
3
6
7
,
5
1
9
2
,
5
0
6
,
0
7
8
4
.
5
2
0
2
4
0
8
/
0
1
/
2
4
10
0
%
8
3
7
,
5
7
1
(
7
2
,
5
0
9
)
(
7
1
,
6
8
7
)
6
9
3
,
3
7
6
1
1
8
.
2
1
3
%
81
9
,
6
6
0
40
9
,
8
3
0
(
1
,
4
7
5
)
(
4
0
,
8
3
5
)
3
6
7
,
5
1
9
2
,
7
6
3
,
8
4
9
5
2
0
2
4
0
2
/
0
1
/
2
5
10
0
%
8
6
2
,
6
9
8
(
7
2
,
5
0
9
)
(
7
4
,
3
3
3
)
7
1
5
,
8
5
6
1
1
8
.
2
1
3
%
84
6
,
2
3
5
4
2
3
,
1
1
8
(
1
,
5
2
3
)
(
4
2
,
1
5
9
)
3
7
9
,
4
3
5
3
,
0
2
2
,
2
2
6
5
.
5
2
0
2
5
0
8
/
0
1
/
2
5
10
0
%
8
6
2
,
6
9
8
(
7
2
,
5
0
9
)
(
7
4
,
3
3
3
)
7
1
5
,
8
5
6
1
1
8
.
2
1
3
%
84
6
,
2
3
5
42
3
,
1
1
8
(
1
,
5
2
3
)
(
4
2
,
1
5
9
)
3
7
9
,
4
3
5
3
,
2
7
3
,
0
7
7
6
2
0
2
5
0
2
/
0
1
/
2
6
10
0
%
8
8
8
,
5
7
9
(
7
2
,
5
0
9
)
(
7
7
,
0
5
8
)
7
3
9
,
0
1
2
1
1
8
.
2
1
3
%
87
3
,
6
0
8
4
3
6
,
8
0
4
(
1
,
5
7
2
)
(
4
3
,
5
2
3
)
3
9
1
,
7
0
8
3
,
5
2
4
,
4
9
9
6
.
5
2
0
2
6
0
8
/
0
1
/
2
6
10
0
%
8
8
8
,
5
7
9
(
7
2
,
5
0
9
)
(
7
7
,
0
5
8
)
7
3
9
,
0
1
2
1
1
8
.
2
1
3
%
87
3
,
6
0
8
43
6
,
8
0
4
(
1
,
5
7
2
)
(
4
3
,
5
2
3
)
3
9
1
,
7
0
8
3
,
7
6
8
,
5
9
9
7
2
0
2
6
0
2
/
0
1
/
2
7
10
0
%
9
1
5
,
2
3
6
(
7
2
,
5
0
9
)
(
7
9
,
8
6
6
)
7
6
2
,
8
6
2
1
1
8
.
2
1
3
%
90
1
,
8
0
2
4
5
0
,
9
0
1
(
1
,
6
2
3
)
(
4
4
,
9
2
8
)
4
0
4
,
3
5
0
4
,
0
1
3
,
2
3
7
7
.
5
2
0
2
7
0
8
/
0
1
/
2
7
10
0
%
9
1
5
,
2
3
6
(
7
2
,
5
0
9
)
(
7
9
,
8
6
6
)
7
6
2
,
8
6
2
1
1
8
.
2
1
3
%
90
1
,
8
0
2
45
0
,
9
0
1
(
1
,
6
2
3
)
(
4
4
,
9
2
8
)
4
0
4
,
3
5
0
4
,
2
5
0
,
7
5
0
8
2
0
2
7
0
2
/
0
1
/
2
8
10
0
%
9
4
2
,
6
9
3
(
7
2
,
5
0
9
)
(
8
2
,
7
5
7
)
7
8
7
,
4
2
7
1
1
8
.
2
1
3
%
93
0
,
8
4
1
4
6
5
,
4
2
1
(
1
,
6
7
6
)
(
4
6
,
3
7
5
)
4
1
7
,
3
7
1
4
,
4
8
8
,
7
7
1
8
.
5
2
0
2
8
0
8
/
0
1
/
2
8
10
0
%
9
4
2
,
6
9
3
(
7
2
,
5
0
9
)
(
8
2
,
7
5
7
)
7
8
7
,
4
2
7
1
1
8
.
2
1
3
%
93
0
,
8
4
1
46
5
,
4
2
1
(
1
,
6
7
6
)
(
4
6
,
3
7
5
)
4
1
7
,
3
7
1
4
,
7
1
9
,
8
5
9
9
2
0
2
8
0
2
/
0
1
/
2
9
10
0
%
9
7
0
,
9
7
4
(
7
2
,
5
0
9
)
(
8
5
,
7
3
6
)
8
1
2
,
7
3
0
1
1
8
.
2
1
3
%
96
0
,
7
5
2
4
8
0
,
3
7
6
(
1
,
7
2
9
)
(
4
7
,
8
6
5
)
4
3
0
,
7
8
2
4
,
9
5
1
,
4
2
6
9
.
5
2
0
2
9
0
8
/
0
1
/
2
9
10
0
%
9
7
0
,
9
7
4
(
7
2
,
5
0
9
)
(
8
5
,
7
3
6
)
8
1
2
,
7
3
0
1
1
8
.
2
1
3
%
96
0
,
7
5
2
48
0
,
3
7
6
(
1
,
7
2
9
)
(
4
7
,
8
6
5
)
4
3
0
,
7
8
2
5
,
1
7
6
,
2
4
7
1
0
2
0
2
9
0
2
/
0
1
/
3
0
10
0
%
1
,
0
0
0
,
1
0
3
(
7
2
,
5
0
9
)
(
8
8
,
8
0
4
)
8
3
8
,
7
9
1
1
1
8
.
2
1
3
%
99
1
,
5
6
0
4
9
5
,
7
8
0
(
1
,
7
8
5
)
(
4
9
,
4
0
0
)
4
4
4
,
5
9
6
5
,
4
0
1
,
5
2
0
1
0
.
5
2
0
3
0
0
8
/
0
1
/
3
0
10
0
%
1
,
0
0
0
,
1
0
3
(
7
2
,
5
0
9
)
(
8
8
,
8
0
4
)
8
3
8
,
7
9
1
1
1
8
.
2
1
3
%
99
1
,
5
6
0
49
5
,
7
8
0
(
1
,
7
8
5
)
(
4
9
,
4
0
0
)
4
4
4
,
5
9
6
5
,
6
2
0
,
2
3
2
1
1
2
0
3
0
0
2
/
0
1
/
3
1
10
0
%
1
,
0
3
0
,
1
0
6
(
7
2
,
5
0
9
)
(
9
1
,
9
6
3
)
8
6
5
,
6
3
4
1
1
8
.
2
1
3
%
1,
0
2
3
,
2
9
2
5
1
1
,
6
4
6
(
1
,
8
4
2
)
(
5
0
,
9
8
0
)
4
5
8
,
8
2
4
5
,
8
3
9
,
3
6
9
1
1
.
5
2
0
3
1
0
8
/
0
1
/
3
1
10
0
%
1
,
0
3
0
,
1
0
6
(
7
2
,
5
0
9
)
(
9
1
,
9
6
3
)
8
6
5
,
6
3
4
1
1
8
.
2
1
3
%
1,
0
2
3
,
2
9
2
51
1
,
6
4
6
(
1
,
8
4
2
)
(
5
0
,
9
8
0
)
4
5
8
,
8
2
4
6
,
0
5
2
,
1
2
3
1
2
2
0
3
1
0
2
/
0
1
/
3
2
10
0
%
1
,
0
6
1
,
0
0
9
(
7
2
,
5
0
9
)
(
9
5
,
2
1
8
)
8
9
3
,
2
8
3
1
1
8
.
2
1
3
%
1,
0
5
5
,
9
7
7
5
2
7
,
9
8
8
(
1
,
9
0
1
)
(
5
2
,
6
0
9
)
4
7
3
,
4
7
9
6
,
2
6
5
,
2
7
8
1
2
.
5
2
0
3
2
0
8
/
0
1
/
3
2
10
0
%
1
,
0
6
1
,
0
0
9
(
7
2
,
5
0
9
)
(
9
5
,
2
1
8
)
8
9
3
,
2
8
3
1
1
8
.
2
1
3
%
1,
0
5
5
,
9
7
7
52
7
,
9
8
8
(
1
,
9
0
1
)
(
5
2
,
6
0
9
)
4
7
3
,
4
7
9
6
,
4
7
2
,
2
2
5
1
3
2
0
3
2
0
2
/
0
1
/
3
3
10
0
%
1
,
0
9
2
,
8
4
0
(
7
2
,
5
0
9
)
(
9
8
,
5
7
0
)
9
2
1
,
7
6
1
1
1
8
.
2
1
3
%
1,
0
8
9
,
6
4
2
5
4
4
,
8
2
1
(
1
,
9
6
1
)
(
5
4
,
2
8
6
)
4
8
8
,
5
7
3
6
,
6
7
9
,
5
4
9
1
3
.
5
2
0
3
3
0
8
/
0
1
/
3
3
10
0
%
1
,
0
9
2
,
8
4
0
(
7
2
,
5
0
9
)
(
9
8
,
5
7
0
)
9
2
1
,
7
6
1
1
1
8
.
2
1
3
%
1,
0
8
9
,
6
4
2
54
4
,
8
2
1
(
1
,
9
6
1
)
(
5
4
,
2
8
6
)
4
8
8
,
5
7
3
6
,
8
8
0
,
8
3
5
1
4
2
0
3
3
0
2
/
0
1
/
3
4
10
0
%
1
,
1
2
5
,
6
2
5
(
7
2
,
5
0
9
)
(
1
0
2
,
0
2
3
)
9
5
1
,
0
9
4
1
1
8
.
2
1
3
%
1,
1
2
4
,
3
1
6
5
6
2
,
1
5
8
(
2
,
0
2
4
)
(
5
6
,
0
1
3
)
5
0
4
,
1
2
1
7
,
0
8
2
,
4
7
7
1
4
.
5
2
0
3
4
0
8
/
0
1
/
3
4
10
0
%
1
,
1
2
5
,
6
2
5
(
7
2
,
5
0
9
)
(
1
0
2
,
0
2
3
)
9
5
1
,
0
9
4
1
1
8
.
2
1
3
%
1,
1
2
4
,
3
1
6
56
2
,
1
5
8
(
2
,
0
2
4
)
(
5
6
,
0
1
3
)
5
0
4
,
1
2
1
7
,
2
7
8
,
2
4
6
1
5
2
0
3
4
0
2
/
0
1
/
3
5
10
0
%
1
,
1
5
9
,
3
9
4
(
7
2
,
5
0
9
)
(
1
0
5
,
5
7
9
)
9
8
1
,
3
0
6
1
1
8
.
2
1
3
%
1,
1
6
0
,
0
3
1
5
8
0
,
0
1
6
(
2
,
0
8
8
)
(
5
7
,
7
9
3
)
5
2
0
,
1
3
5
7
,
4
7
4
,
3
5
0
1
5
.
5
2
0
3
5
0
8
/
0
1
/
3
5
10
0
%
1
,
1
5
9
,
3
9
4
(
7
2
,
5
0
9
)
(
1
0
5
,
5
7
9
)
9
8
1
,
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cts\50th and France 2\TIF Run 5.25.2017 - Final
Appendix E
Minnesota Business Assistance Form
(Minnesota Department of Employment and Economic Development)
A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's
activity by April 1 of the following year.
Please see the Minnesota Department of Employment and Economic Development (DEED) website at
http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms.
Appendix E-1
Appendix F
Redevelopment Qualifications for the District
Appendix F-1
Final Report of
Inspection Procedures and Results
For
Determining Qualifications of a
Tax Increment Financing (TIF) District
as a Redevelopment District
Edina HRA
Proposed TIF District
Edina, Minnesota
Stantec Project No. 193804505
April 13, 2017
Page 2
Table of Contents
PART 1 Executive Summary 3
Purpose of Evaluation 3
Scope of Work 3
Conclusion 4
PART 2 Minnesota Statute 469.174, Subdivision 10 Requirements 4
PART 3 Procedures Followed 6
PART 4 Findings 7
A. Coverage Test 7
B. Condition of Building Test 8
1. Replacement Cost 8
2. Code Deficiencies 8
3. System Condition Deficiencies 9
C. Distribution of Substandard Structures 11
D. Conclusion 11
PART 5 Team Credentials 12
APPENDIX A Map of Proposed TIF District
Hennepin County Property Maps
APPENDIX B Building Code and Condition Deficiencies Reports
APPENDIX C Code Deficiency Estimated Replacement Costs
APPENDIX D Photographs
Page 3
PART 1 – EXECUTIVE SUMMARY
PURPOSE OF EVALUATION
Stantec was retained by the City of Edina HRA to inspect and evaluate the properties
within a Tax Increment Financing Redevelopment District (“TIF District”) proposed to be
established by the City. The proposed TIF District is located in the City of Edina, in a
general area between Halifax Avenue on the west, France Avenue on the east, and on
both sides of 49-1/2 Street West (Figure 1). The purpose of Stantec’s work was to
determine whether the proposed district meets the statutory requirements for
coverage, and whether buildings on nine different parcels, located within the proposed
TIF District, meet the qualifications required for a Redevelopment District.
Figure 1 – Proposed TIF District
SCOPE OF WORK
The proposed district consists of nine (9) parcels containing two (2) parking ramps, one
(1) commercial building, one (1) on-grade parking lot, and one (1) vacant lot.
All the buildings in the proposed district received an onsite interior and exterior
inspection. Building Code and Condition Deficiency Reports for each building
inspected by Stantec are in Appendix B.
Page 4
CONCLUSION
After inspecting and evaluating the properties within the proposed TIF District and
applying current statutory criteria for a Redevelopment District under Minnesota
Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed
TIF District does qualify as a Redevelopment District.
The remainder of this report describes our process and findings in detail.
PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS
The properties were inspected in accordance with the following requirements under
Minnesota Statutes, Section 469.174, Subdivision 10, which states:
Interior Inspection
"The municipality may not make such determination [that the building is structurally
substandard] without an interior inspection of the property..."
Exterior Inspection and Other Means
"An interior inspection of the property is not required, if the municipality finds that (1)
the municipality or authority is unable to gain access to the property after using its
best efforts to obtain permission from the party that owns or controls the property;
and (2) the evidence otherwise supports a reasonable conclusion that the building
is structurally substandard."
Documentation
"Written documentation of the findings and reasons why an interior inspection was
not conducted must be made and retained under section 469.175, subdivision 3(1)."
Qualification Requirements
Minnesota Statutes, Section 469.174, Subdivision 10(a)requires two tests for occupied
parcels:
1. Coverage Test
”…parcels consisting of 70 percent of the area of the district are occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures.”
The coverage required by the parcel to be considered occupied is defined
under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: " For
purposes of this subdivision, a parcel is not occupied by buildings, streets,
utilities, paved or gravel parking lots, or other similar structures unless 15 percent
of the area of the parcel contains buildings, streets, utilities, paved or gravel
parking lots, or other similar structures.”
Page 5
2. Condition of Building Test
…”and more than 50 percent of the buildings, not including outbuildings, are
structurally substandard to a degree requiring substantial renovation or
clearance;”
1. Structurally substandard is defined under Minnesota Statutes, Section 469.174,
Subdivision 10(b), which states: “For purposes of this subdivision, "structurally
substandard" shall mean containing defects in structural elements or a
combination of deficiencies in essential utilities and facilities, light and
ventilation, fire protection including adequate egress, layout and condition
of interior partitions, or similar factors, which defects or deficiencies are of
sufficient total significance to justify substantial renovation or clearance.”
Definition of Substantial Renovation
Because "Substantial renovation" can mean different things to different
people, Stantec has attempted to clarify exactly what we consider to be
"substantial renovation" as it relates to Minnesota Statutes, Section 469.174,
Subdivision 10(a) (1).
a. First, we researched national standards as to how much building owners
should budget for annual maintenance and repair on their buildings as a
percentage of replacement cost of the building.
1. According to the University of California "Facilities Renewal Budget
Model" report of 1999, building owners should budget between two
and three percent of current replacement value of their buildings for
maintenance and repair work. This does not include routine janitorial
work and routine items such as changing light bulbs and filters.
2. According to the Building Research Board of the National Research
Council, one and one-half to three percent of a building's
replacement value should be budgeted for maintenance and repair.
b. Based on this information, Stantec utilized two and one-half percent as
the desired amount of maintenance and repair that should be budgeted
annually to keep a building in good working condition. We recognize
through experience that only a small percentage of sophisticated
building owners actually budget for and spend this amount of money
every year on maintenance and repair. This is because most business
owners are driven by other budgetary issues and tend to neglect the
building maintenance and repair line items in their annual budgets.
c. By establishing how much a building owner should be budgeting per year
for maintenance and repairs, Stantec believes we could more easily
establish an amount that would be considered "substantial" in
comparison. If an owner is budgeting 2.5 percent of the building's
replacement cost annually, most business owners or home owners would
have to take out a loan to cover the cost of a substantial building
Page 6
improvement. Assuming they had a fixed level of income to work with,
they would have to keep the loan payment at a level very near the
original 2.5 percent they should have been budgeting each year. In
addition, they still would have to budget for the original 2.5 percent on
top of the loan. In most cases, the mortgage terms would have to extend
out to a point beyond the life expectancy of the building they were trying
to improve, as most buildings built in the past fifty years are not designed
to last beyond 40 years.
d. Based on the calculations described above, we have defined substantial
renovation for purposes of Minnesota Statutes, Section 469.174, Subdivision
10(c), as renovation with costs exceeding 15 percent of the building's
replacement value.
2. Buildings are not eligible to be considered structurally substandard unless they
meet certain additional criteria, as set forth in Subdivision 10(c) which states:
"A building is not structurally substandard if it is in compliance with the
building code applicable to new buildings or could be modified to satisfy the
building code at a cost of less than 15 percent of the cost of constructing a
new structure of the same square footage and type on the site. The
municipality may find that a building is not disqualified as structurally
substandard under the preceding sentence on the basis of reasonably
available evidence, such as the size, type, and age of the building, the
average cost of plumbing, electrical, or structural repairs, or other similar
reliable evidence."
"Items of evidence that support such a conclusion include recent fire or
police inspections, on-site property tax appraisals or housing inspections,
exterior evidence of deterioration, or other similar reliable evidence."
PART 3 – PROCEDURES FOLLOWED
Stantec performed interior and exterior inspections for both parking ramps and the
one commercial building within the proposed TIF District on February 7, 2017. Visual
observations were made of all levels of all properties and structures, with physical
measurements taken where necessary. Area calculations and construction data
are based upon information from various sources, as noted.
Page 7
PART 4 – FINDINGS
A. Coverage Test
1. The total square foot area of each parcel in the proposed TIF District was
obtained from Hennepin County Property Map GIS mapping, and site
verification.
2. The total square foot area of buildings and site improvements on the parcels
in the proposed TIF District was obtained from City records, Hennepin County
Property Map GIS mapping, and site verification.
3. The percentage of coverage for each parcel in the proposed TIF District was
computed to determine if the 15 percent minimum requirement was met. The
total square footage of parcels meeting the 15 percent requirement was
divided into the total square footage of the entire district to determine if the
70 percent requirement was met.
Findings:
The proposed TIF District met the coverage test under Minnesota Statutes,
Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 88.8
percent of the area of the proposed TIF District being occupied by buildings,
streets, utilities or paved drives or parking lots (Figure 2). This exceeds the 70
percent area coverage requirement for the proposed TIF District under
Minnesota Statutes, Section 469.174, Subdivision 10(a) (1).
Figure 2 – Coverage Test Aerial View
Page 8
B. Condition of Building Test
1. Replacement Cost
The first step in evaluating a building to determine if it is substandard to a degree
requiring substantial renovation or clearance is to determine its replacement
cost.
This is the cost of constructing a new structure of the same square footage and
type on site. Replacement costs were researched using R.S. Means Cost Works
square foot models for 2017.
A replacement cost was calculated by first establishing building use (office,
retail, residential, etc.), building construction type (wood, concrete, masonry,
etc.), and building size to obtain the appropriate median replacement cost,
which factors in the costs of construction in Edina, Minnesota.
Replacement cost includes labor, materials, and the contractor's overhead and
profit. Replacement costs do not include architectural fees, legal fees or other
“soft" costs not directly related to construction activities. Replacement cost for
each building is tabulated in Appendix C.
2. Code Deficiencies
The next step in evaluating a building is to determine what code deficiencies
exist with respect to such building. Code deficiencies are those conditions for a
building which are not in compliance with current building codes applicable to
new buildings in the State of Minnesota.
Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that
a building cannot be considered structurally substandard if its code deficiencies
are not at least 15 percent of the replacement cost of the building. Thus, it was
necessary to determine the extent of code deficiencies for each building in the
proposed TIF District.
The evaluation was made by reviewing all available information with respect to
such buildings contained in City Building Inspection records and making interior
and exterior inspections of the buildings. Stantec utilized the 2015 Minnesota
State Building Code as the official code for our evaluations. The Minnesota State
Building Code is a series of provisional codes written specifically for Minnesota
only requirements, adoption of several international codes, and amendments to
the adopted international codes.
After identifying the code deficiencies in each building, we used R.S. Means Cost
Works 2017; Unit and Assembly Costs to determine the cost of correcting the
identified deficiencies. We were then able to compare the correction costs with
the replacement cost of each building to determine if the costs for correcting
code deficiencies meet the required 15 percent threshold.
Page 9
Finding:
Two (2) of the three (3) buildings/structures (67 percent) in the proposed TIF
District contained code deficiencies exceeding the 15 percent threshold
required by Minnesota Statutes, Section 469.174, Subdivision 10(c). A complete
Building Code and Condition Deficiency report for each building/structure in the
proposed TIF District can be found in Appendix B of this report.
3. System Condition Deficiencies
System condition deficiencies are a measurement of defects or substantial
deterioration in site elements, structure, exterior envelope, mechanical and
electrical components, fire protection and emergency systems, interior partitions,
ceilings, floors, and doors.
The evaluation was made by reviewing all available information contained in
City records, and making interior and exterior inspections of the buildings.
Stantec only identified system condition deficiencies that were visible upon our
inspection of the building or contained in City records. We did not consider the
amount of "service life" used up for a particular component unless it was an
obvious part of that component's deficiencies.
Minnesota Statutes, Section 469.174, Subdivision 10(c), provides for the minimum
threshold of code deficiencies that must be met in order to consider a building
substandard. If a building meets the minimum code deficiency threshold under
Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such
building to be "structurally substandard" under Minnesota Statutes, Section
469.174, Subdivision 10(b), the building's defects or deficiencies should be of
sufficient total significance to justify substantial renovation or clearance." Based
on this definition, Stantec re-evaluated each of the buildings that met the code
deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision
10(c), to determine if the total deficiencies warranted "substantial renovation or
clearance" based on the criteria we outlined above.
Finding:
In our professional opinion, two (2) of the three (3) buildings/structures (67
percent) in the proposed TIF District are structurally substandard to a degree
requiring substantial renovation or clearance, because of defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light
and ventilation, fire protection including adequate egress, layout and condition
of interior partitions, or similar factors which defects or deficiencies are of
sufficient total significance to justify substantial renovation or clearance as
described below:
Page 10
Hooten Cleaners – 3944 49-1/2 Street West – Parcel 1802824 140035
This building was found to be structurally substandard with code deficiencies
that exceed the 15 percent of the building replacement value criteria as
defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c).
Edina Public Parking Ramp – 3925 49-1/2 Street West – Parcels 1802824 140032,
1802824 140120, 1802824 140123, and 1802824 140023
This parking ramp was found to be structurally substandard with significant
code deficiencies that exceed the 15 percent of the building replacement
value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision
10 (b) and (c).
50th & France Parking Ramp – 3936/3940 49-1/2 Street West – Parcels 1802824
140030 and 1802824 140034
This parking ramp has code and condition deficiencies, but they are not
significant enough to reach the required 15 percent of building replacement
value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision
10 (b) and (c).
Page 11
C. Distribution of Substandard Structures
Much of this report has focused on the condition of individual buildings as they
relate to requirements identified by Minnesota Statutes, Section 469.174,
Subdivision 10. It is also important to look at the distribution of substandard
buildings throughout the geographic area of the proposed TIF District.
Finding:
The substandard buildings are reasonably distributed throughout the geographic
area of the proposed TIF District (Figure 3).
Figure 3 – Distribution of Substandard Structures (shown shaded green)
D. CONCLUSION
After inspecting and evaluating the properties within the proposed TIF District
and applying current statutory criteria for a Redevelopment District under
Minnesota Statutes, Section 469.174, Subdivision 10a, it is our professional opinion
that the proposed TIF District does qualify as a Redevelopment District.
The remainder of this report describes our process and findings in detail.
Page 12
PART 5 – TEAM CREDENTIALS
Bruce P. Paulson, AIA – Senior Project Manager/Inspector
Bruce has more than 41 years of architectural experience as project architect,
project manager, and project designer for municipal, governmental, educational,
commercial, hospitality, and healthcare clients. He is involved with all phases of the
architectural process, from pre-design through construction administration, including
specialty consulting in investigations for buildings, building condition surveys, TIF
inspections, code reviews, estimating, and specification writing.
Philip J. Caswell, P.E. – Sr. Associate/Structural Team Leader
Phil has over 30 years of engineering experience that includes structural assessment,
design, and construction of a wide variety of project types, including new buildings,
additions, building renovations, and structure demolition, as well as design and
construction of recreational facilities, dams, water and wastewater treatment and
pumping facilities and flood control projects. Phil’s project experience involves all
levels of a structure’s life cycle, from design and construction of new, to assessment
and rehabilitation or expansion of existing structures, including historic structures, to
renovation and repurposing of buildings, tanks, and facilities, to full demolition and
site restoration.
APPENDIX A
APPENDIX B
CITY OF EDINA
PROPOSED TIF DISTRICT
BUILDING CONDITION AND CODE DEFICIENCIES REPORT
February 7, 2017
Property ID No.: 1802824 140035
Inspection Date(s) and Time(s): 2-7-17, 8:00 a.m.
Inspection Type: Interior and exterior.
General Description of Property: Commercial.
Type of Construction: Exterior masonry bearing walls; interior steel framing
Date of Construction: Original building constructed in 1949.
Structure Size(s): 3,880 SF – Main Level; 1,500 SF – Basement; 350 SF
outbuilding
Summary of Deficiencies: It is our professional opinion that this building is Substandard because:
o Substantial renovation is required to correct Conditions and
Building Code deficiencies.
Estimated Replacement Cost: $1,575,750.00
Estimated Cost to Correct Building Code Deficiencies: $336,391.20
Percentage of Replacement Cost for Building Code Deficiencies: 21.3%
Description of Condition Deficiencies
• Rear entrance doors are not on an accessible route. Grade is more than ½” below finish
floor line.
• Door hardware does not comply with accessibility code.
• No drinking fountain.
• No Public restroom on main level.
• Staff restrooms in basement level with no accessible route.
• Clearances at staff restroom water closets, urinal, and sinks do not comply with accessibility
code.
• Stairs to basement areas have treads and risers that do not comply with current code.
• Handrails at stairs to basement areas do not comply with current code for extension past top
and bottom nosings.
• Basement areas are accessible by stair only.
• HVAC system does not comply with current code requirements.
• Exterior masonry walls have no insulation and do not comply with current energy code
requirements.
• Exterior windows in east, north and west walls at the main and basement levels are single
pane in steel frames which do not comply with current energy code requirements.
• Based on visual observation, we suspect the existing built-up roofing system does not have
insulation in compliance with current energy code requirements.
CITY OF EDINA
PROPOSED TIF DISTRICT
BUILDING CONDITION AND CODE DEFICIENCIES REPORT
February 7, 2017
Property ID No.: 1802824 140030 and 1802824 140034
Inspection Date(s) and Time(s): 2-7-17, 8:00 a.m.
Inspection Type: Interior and exterior.
General Description of Property: Commercial Parking Ramp
Type of Construction: Cast-In-Place and precast concrete.
Date of Construction: Original building constructed in 1991; expansion
constructed in 1997.
Structure Size(s): 26,100 SF building footprint; 3 parking levels; 78,300 SF Total;
262 parking spaces
Summary of Deficiencies: It is our professional opinion that this building is Not Substandard
because:
o Estimated cost to correct building code deficiencies is less
than 15% of the estimated replacement cost.
Estimated Replacement Cost: $2,369,880.00
Estimated Cost to Correct Building Code Deficiencies: $10,900.00
Percentage of Replacement Cost for Building Code Deficiencies: 0.005%
Description of Condition Deficiencies
• Exit/entrance doors to both stairways swing out over the paver sidewalk. Current code
requires outswinging doors to have a structural stoop with frost footings to prevent heaving
which could restrict the door swing and access/egress capability.
• The current code requires 7 accessible parking spaces based on the total number of parking
spaces provided (2015 Minnesota Accessibility Code, Table 1106.1). there are currently only
6 identified accessible parking spaces provided (two per parking level).
• Limited damage to face brick veneer on columns and bollards are grade.
• Limited damage to concrete wall at guardrails near east end of ramp at sidewalk level.
CITY OF EDINA
PROPOSED TIF DISTRICT
BUILDING CONDITION AND CODE DEFICIENCIES REPORT
February 7, 2017
Property ID No. & Property Address: 1802824 140026 (Vacant)
Inspection Date(s) and Time(s): 2-7-17, 9:00 a.m.
Inspection Type: None
Summary of Conditions: Not Applicable.
• There are no buildings on this parcel that would require an inspection.
CITY OF EDINA
PROPOSED TIF DISTRICT
BUILDING CONDITION AND CODE DEFICIENCIES REPORT
February 7, 2017
Property ID No.: 1802824 140036 and west half of 1802824 140032
Inspection Date(s) and Time(s): 2-7-17, 8:00 a.m.
Inspection Type: Exterior.
General Description of Property: On-grade paved parking lot.
Type of Construction: Asphalt pavement and concrete curb and gutters.
Structure Size(s): 24,880 SF; 35 parking spaces; 3 accessible spaces.
Summary of Conditions: Paved parking lot appears to be in good condition.
• There are no buildings on this parcel that would require an inspection.
CITY OF EDINA
PROPOSED TIF DISTRICT
BUILDING CONDITION AND CODE DEFICIENCIES REPORT
February 7, 2017
Property ID No.: East half of 1802824 140032, 1802824 140120, 1802824
140123, and 1802824 140023
Inspection Date(s) and Time(s): 2-7-17, 8:00 a.m.
Inspection Type: Interior and exterior.
General Description of Property: Commercial Parking Ramp
Type of Construction: Cast-In-Place and precast concrete.
Date of Construction: Constructed in 1977
Structure Size(s): 30,400 SF building footprint; 3 parking levels; 91,200 SF Total;
274 parking spaces
Summary of Deficiencies: It is our professional opinion that this building is Substandard
because:
o Estimated cost to correct building code deficiencies is more
than 15% of the estimated replacement cost.
Estimated Replacement Cost: $2,751,200.00
Estimated Cost to Correct Building Code Deficiencies: $2,751,200.00
Percentage of Replacement Cost for Building Code Deficiencies: 100%
Description of Condition Deficiencies
• Clearance height is 6’-8”.
• All parking spaces are on sloped ramps adjacent to existing stairs (3).
• Stairs do not comply with minimum clear width for egress.
• No elevator.
• No accessible route from on-grade entrances to level parking spaces that could be striped
to ADA compliance.
APPENDIX C
CITY OF EDINA
PROPOSED TIF DISTRICT
ESTIMATED REPLACEMENT COSTS
1
Property ID No. & Property Address: 1802824 140026 3930 49-1/2 Street West
Vacant lot.
Estimated Cost to Correct Building Code Deficiencies: $0.00
Property ID No. & Property Address: 1802824 140030/1802824 140034 3936/3940 49-1/2 St. W.
West Stair stoop upgrade
Demo existing paver sidewalk – 3 CY @ $350/CY $1,050.00
New concrete footing – 2 CY @ $375/CY $750.00
New 8” CMU walls – 56 SF @ $11.15/SF $625.00
New concrete stoop/ramp – 2.5 CY @ $350/CY $875.00
East Stair stoop upgrade
Demo existing paver sidewalk – 3 CY @ $350/CY $1,050.00
New concrete footing – 2 CY @ $375/CY $750.00
New 8” CMU walls – 56 SF @ $11.15/SF $625.00
New concrete stoop/ramp – 2.5 CY @ $350/CY $875.00
Re-stripe parking to add one additional accessible parking space $800.00
Repair damaged face brick veneer at columns and bollards $2,000.00
Repair damaged concrete wall at guardrails $1,500.00
Estimated Cost to Correct Building Code Deficiencies: $10,900.00
Property ID No. & Property Address: 1802824 140035 3944 49-1/2 Street West
Front entrance stoop upgrade
Demo existing paver sidewalk – 3 CY @ $350/CY $1,050.00
New concrete footing – 2 CY @ $375/CY $750.00
New 8” CMU walls – 56 SF @ $11.15/SF $625.00
New concrete stoop/ramp – 2.5 CY @ $350/CY $875.00
Rear entrance 1 stoop upgrade
Demo existing pavement – 3 CY @ $150/CY $450.00
New concrete footing – 2 CY @ $375/CY $750.00
New 8” CMU walls – 56 SF @ $11.15/SF $624.40
New concrete stoop/ramp – 2.5 CY @ $350/CY $875.00
Rear entrance 2 stoop upgrade
Demo existing pavement – 3 CY @ $150/CY $450.00
New concrete footing – 2 CY @ $375/CY $750.00
New 8” CMU walls – 56 SF @ $11.15/SF $624.40
New concrete stoop/ramp – 2.5 CY @ $350/CY $875.00
Outbuilding entrance 3 stoop upgrade
Demo existing pavement – 3 CY @ $150/CY $450.00
New concrete footing – 2 CY @ $375/CY $750.00
New 8” CMU walls – 56 SF @ $11.15/SF $624.40
New concrete stoop/ramp – 2.5 CY @ $350/CY $875.00
Replace door knobs with lever handles – 12 @ $275/door $3,300.00
Install new dual level drinking fountain $3,000.00
Insulate exterior single-wythe masonry walls - $13/SF x 3,600 SF $46,800.00
Replace single pane glazing with thermally improved frames
and insulated glass – 704 SF @ $85/SF $59,840.00
Replace roofing system and insulation – 4,230 SF @ 15.50/SF $65,565.00
Restroom upgrade – demolition and new construction
Male Restroom – 1 water closet, 1 lavatory
60 SF @ $400/SF $24,000.00
Female Restroom – 1 water closet, 1 lavatory
60 SF @ $400/SF $24,000.00
Upgrade stairs to basement level – 44 Risers @ $600/riser $26,400.00
Replace handrails at stairs to basement level – 4 @ 26LF @ $32/LF $3,328.00
CITY OF EDINA
PROPOSED TIF DISTRICT
ESTIMATED REPLACEMENT COSTS
2
HVAC System upgrade – 5,730 SF @ $7.00/SF $40,110.00
Ventilation System upgrade – 5,730 SF @ $5.00/SF $28,650.00
Estimated Cost to Correct Building Code Deficiencies: $336,391.20
Property ID No. & Property Address: 1802824 140036/1802824 140032 UNDEVELOPED
On-grade paved parking lot.
Property ID No. & Property Address: 1802824 140032/1802824 140120/1802824 140123/1802824
140023 3925 49-1/2 Street West
Replace entire parking ramp to comply with minimum headroom and provide accessible
parking spaces adjacent to an accessible route on each level
Replace stairs to comply with minimum egress width
Add new holeless hydraulic passenger elevator $2,751,200.00
Estimated Cost to Correct Building Code Deficiencies: $2,751,200.00
APPENDIX D
PROPOSED EDINA TIF DISTRICT STUDY
193804505 1 EXISTING CONDITIONS PHOTOS
Rth
Photo 1: Hooten Cleaners rear entrance north wall Photo 2: Hooten Cleaners outbuilding entrance east wall
Photo 3: Hooten Cleaners second rear entrance north wall Photo 4: Hooten Cleaners second rear entrance north wall
PROPOSED EDINA TIF DISTRICT STUDY
193804505 2 EXISTING CONDITIONS PHOTOS
Photo 5: Hooten Cleaners west wall Photo 6: Hooten Cleaners outbuilding second entrance
Photo 7: Hooten Cleaners outbuilding west wall Photo 8: Hooten Cleaners west wall
PROPOSED EDINA TIF DISTRICT STUDY
193804505 3 EXISTING CONDITIONS PHOTOS
Photo 9: Hooten Cleaners west wall Photo 10: Hooten Cleaners south wall
Photo 11: Hooten Cleaners south wall Photo 12: Hooten Cleaners south wall
PROPOSED EDINA TIF DISTRICT STUDY
193804505 4 EXISTING CONDITIONS PHOTOS
Photo 13: Hooten Cleaners interior Photo 14: Hooten Cleaners interior
Photo 15: Hooten Cleaners interior Photo 16: Hooten Cleaners interior
PROPOSED EDINA TIF DISTRICT STUDY
193804505 5 EXISTING CONDITIONS PHOTOS
Photo 17: Hooten Cleaners interior Photo 18: Hooten Cleaners interior
Photo 19: Hooten Cleaners interior roof drain line broken Photo 20: Hooten Cleaners interior
PROPOSED EDINA TIF DISTRICT STUDY
193804505 6 EXISTING CONDITIONS PHOTOS
Photo 21: Hooten Cleaners interior Photo 22: Hooten Cleaners interior
Photo 23: Hooten Cleaners interior Photo 24: Hooten Cleaners interior basement water heates
PROPOSED EDINA TIF DISTRICT STUDY
193804505 7 EXISTING CONDITIONS PHOTOS
`+
Photo 25: Hooten Cleaners interior basement boilers Photo 26: Hooten Cleaners interior boiler room electrical
Photo 27: Hooten Cleaners interior boiler room electrical Photo 28: Hooten Cleaners interior water softener
PROPOSED EDINA TIF DISTRICT STUDY
193804505 8 EXISTING CONDITIONS PHOTOS
Photo 29: Hooten Cleaners interior boiler room Photo 30: Hooten Cleaners interior boilers
Photo 31: Hooten Cleaners interior basement restroom Photo 32: Hooten Cleaners interior basement restroom
PROPOSED EDINA TIF DISTRICT STUDY
193804505 9 EXISTING CONDITIONS PHOTOS
Photo 33: Hooten Cleaners basement cleanout Photo 34: Hooten Cleaners interior basement restroom
Photo 35: Hooten Cleaners interior basement restroom Photo 36: Hooten Cleaners basement gas meter
PROPOSED EDINA TIF DISTRICT STUDY
193804505 10 EXISTING CONDITIONS PHOTOS
Photo 37: Hooten Cleaners interior basement restroom Photo 38: Hooten Cleaners interior basement restroom
Photo 39: Hooten Cleaners interior basement restroom Photo 40: Hooten Cleaners interior basement restroom
PROPOSED EDINA TIF DISTRICT STUDY
193804505 11 EXISTING CONDITIONS PHOTOS
Photo 41: Hooten Cleaners interior Photo 42: Hooten Cleaners basement
Photo 43: Hooten Cleaners basement Photo 44: Hooten Cleaners basement
PROPOSED EDINA TIF DISTRICT STUDY
193804505 12 EXISTING CONDITIONS PHOTOS
Photo 45: Hooten Cleaners basement Photo 46: Hooten Cleaners basement
Photo 47: Hooten Cleaners interior Photo 48: Hooten Cleaners main level electrical
PROPOSED EDINA TIF DISTRICT STUDY
193804505 13 EXISTING CONDITIONS PHOTOS
Photo 49: Hooten Cleaners outbuilding interior Photo 50: Hooten Cleaners outbuilding interior
Photo 51: Hooten Cleaners outbuilding interior Photo 52: Hooten Cleaners outbuilding interior
PROPOSED EDINA TIF DISTRICT STUDY
193804505 14 EXISTING CONDITIONS PHOTOS
Photo 53: Hooten Cleaners roof Photo 54: Hooten Cleaners roof
Photo 55: Hooten Cleaners roof Photo 56: Hooten Cleaners roof
PROPOSED EDINA TIF DISTRICT STUDY
193804505 15 EXISTING CONDITIONS PHOTOS
Photo 57: Hooten Cleaners roof Photo 58: Hooten Cleaners outbuilding south wall
Photo 59: 50th & France Parking Ramp east stair Photo 60: 50th & France Parking Ramp elevator – 3rd level
PROPOSED EDINA TIF DISTRICT STUDY
193804505 16 EXISTING CONDITIONS PHOTOS
Photo 61: 50th & France Parking Ramp west stair roof plank Photo 62: 50th & France Parking Ramp west stair roof
Photo 63: 50th & France Parking Ramp west stair windows Photo 64: 50th & France Parking Ramp elevator – 2nd level
PROPOSED EDINA TIF DISTRICT STUDY
193804505 17 EXISTING CONDITIONS PHOTOS
Photo 65: 50th & France Parking Ramp west stair Photo 66: 50th & France Parking Ramp elevator – 1st level
Photo 67: 50th & France Parking Ramp west stair entrance door Photo 68: 50th & France Parking Ramp – 1st level accessible
spaces
PROPOSED EDINA TIF DISTRICT STUDY
193804505 18 EXISTING CONDITIONS PHOTOS
Photo 69: 50th & France Parking Ramp – 2nd level accessible
spaces
Photo 70: 50th & France Parking Ramp – 3rd level accessible
spaces
Photo 71: 50th & France Parking Ramp east stair entrance door Photo 72: 50th & France Parking Ramp concrete spall
PROPOSED EDINA TIF DISTRICT STUDY
193804505 19 EXISTING CONDITIONS PHOTOS
Photo 73: 50th & France Parking Ramp concrete spall Photo 74: 50th & France Parking Ramp face brick damage
Photo 75: 50th & France Parking Ramp face brick damage Photo 76: 50th & France Parking Ramp face brick damage
PROPOSED EDINA TIF DISTRICT STUDY
193804505 20 EXISTING CONDITIONS PHOTOS
Photo 77: On-grade parking lot Photo 78: On-grade parking lot
Photo 79: Edina Public Parking Ramp north and west sides Photo 80: Edina Public Parking Ramp north side
PROPOSED EDINA TIF DISTRICT STUDY
193804505 21 EXISTING CONDITIONS PHOTOS
Photo 81: Edina Public Parking Ramp northwest stair Photo 82: Edina Public Parking Ramp northwest stair
Photo 83: Edina Public Parking Ramp west wall Photo 84: Edina Public Parking Ramp west entrance
PROPOSED EDINA TIF DISTRICT STUDY
193804505 22 EXISTING CONDITIONS PHOTOS
Photo 85: Edina Public Parking Ramp southwest stair Photo 86: Edina Public Parking Ramp trash room
Photo 87: Edina Public Parking Ramp trash room Photo 88: Edina Public Parking Ramp precast double tee
deterioration
PROPOSED EDINA TIF DISTRICT STUDY
193804505 23 EXISTING CONDITIONS PHOTOS
Photo 89: Edina Public Parking Ramp non-compliant accessible
parking spaces
Photo 90: Edina Public Parking Ramp
Photo 91: Edina Public Parking Ramp Photo 92: Edina Public Parking Ramp leaks at precast double
tees
PROPOSED EDINA TIF DISTRICT STUDY
193804505 24 EXISTING CONDITIONS PHOTOS
Photo 93: Edina Public Parking Ramp Photo 94: Edina Public Parking Ramp stairs
Photo 95: Edina Public Parking Ramp precast double tee
deterioration
Photo 96: Edina Public Parking Ramp
PROPOSED EDINA TIF DISTRICT STUDY
193804505 25 EXISTING CONDITIONS PHOTOS
Photo 97: Edina Public Parking Ramp precast double tee
deterioration
Photo 98: Edina Public Parking Ramp
Photo 99: Edina Public Parking Ramp trash enclosure Photo 100: Edina Public Parking Ramp west side
PROPOSED EDINA TIF DISTRICT STUDY
193804505 26 EXISTING CONDITIONS PHOTOS
Photo 101: Edina Public Parking Ramp Photo 102: Edina Public Parking Ramp stairs
Photo 103: Edina Public Parking Ramp Photo 104: Edina Public Parking Ramp deteriorated caulk joint
PROPOSED EDINA TIF DISTRICT STUDY
193804505 27 EXISTING CONDITIONS PHOTOS
Photo 105: Edina Public Parking Ramp Photo 106: Edina Public Parking Ramp
Photo 107: Edina Public Parking Ramp Photo 108: Edina Public Parking Ramp
PROPOSED EDINA TIF DISTRICT STUDY
193804505 28 EXISTING CONDITIONS PHOTOS
Photo 107: Edina Public Parking Ramp Photo 108: Edina Public Parking Ramp
Photo 109: Edina Public Parking Ramp Photo 110: Edina Public Parking Ramp
PROPOSED EDINA TIF DISTRICT STUDY
193804505 29 EXISTING CONDITIONS PHOTOS
Photo 111: Edina Public Parking Ramp Photo 112: Edina Public Parking Ramp
Photo 113: Edina Public Parking Ramp Photo 114: Edina Public Parking Ramp
PROPOSED EDINA TIF DISTRICT STUDY
193804505 30 EXISTING CONDITIONS PHOTOS
Photo 115: Edina Public Parking Ramp southeast stair Photo 116: Edina Public Parking Ramp southeast stair caulking
Photo 117: Edina Public Parking Ramp Photo 118: Edina Public Parking Ramp
PROPOSED EDINA TIF DISTRICT STUDY
193804505 31 EXISTING CONDITIONS PHOTOS
Photo 119: Edina Public Parking Ramp Photo 120: Edina Public Parking Ramp
Photo 121: Edina Public Parking Ramp west entrance – 6’-8”
headroom
Photo 122: Edina Public Parking Ramp south side
Appendix G
Findings Including But/For Qualifications
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF
Plan) for 50th and France 2 Tax Increment Financing District (District), as required pursuant to Minnesota
Statutes, Section 469.175, Subdivision 3 are as follows:
1. Finding that 50th and France 2 Tax Increment Financing District is a redevelopment district as
defined in M.S., Section 469.174, Subd. 10.
The District consists of nine parcels, with plans to redevelop the area for rental housing and
commercial/industrial purposes. At least 70 percent of the area of the parcels in the District are
occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and
more than 50 percent of the buildings in the District, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF
Plan.)
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that the
increased market value of the site that could reasonably be expected to occur without the use of tax increment
financing would be less than the increase in the market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum duration
of the District permitted by the TIF Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to occur
solely through private investment within the reasonably foreseeable future: This finding is supported
by the fact that the redevelopment proposed in the TIF Plan meets the City's objectives for
redevelopment. The existing property contains vacant or substandard buildings with high costs
related to demolition, remediation and reconstruction of infrastructure. The redevelopment also
requires district-wide parking, transportation and utility infrastructure investment. With limited
amounts of property available for expansion adjacent to the existing project and height/density
limitations, and the cost of financing the proposed improvements, this project is feasible only through
assistance, in part, from tax increment financing. The developer was asked for and provided its
proforma as justification that the developer would not have gone forward without tax increment
assistance.
The increased market value of the site that could reasonably be expected to occur without the use of
tax increment financing would be less than the increase in market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the
maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds
that the development intensity and tax base created on currently underutilized public property
requires public improvements that are improbable without public assistance. Specifically, the cost
of site preparation, demolition, remediation, and public improvements to include underground
parking and utilities will add significantly to the total redevelopment cost of any development in this
area. Historically, site and public improvements costs necessary to sustain the required density have
made redevelopment infeasible without tax increment assistance. The City reasonably determines that
no other redevelopment of similar scope is anticipated on this site without substantially similar
assistance being provided to the development.
Therefore, the City concludes as follows:
Appendix G-1
a. The City's estimate of the amount by which the market value of the entire District will
increase without the use of tax increment financing is $0.
b. If the proposed development occurs, the total increase in market value will be $48,108,130.
c. The present value of tax increments from the District for the maximum duration of the
district permitted by the TIF Plan is estimated to be $12,253,149.
d. Even if some development other than the proposed development were to occur, the Council
finds that no alternative would occur that would produce a market value increase greater than
$35,854,980 (the amount in clause b less the amount in clause c) without similar tax
increment assistance.
3. Finding that the TIF Plan for the District conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the
general development plan of the City.
4. Finding that the TIF Plan for the District will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development or redevelopment of Southeast Edina Redevelopment
Project Area by private enterprise.
The project to be assisted by the District will result in increased employment in the City and the
State of Minnesota, the renovation of substandard properties, increased tax base of the State and
add a high quality development to the City which also expands the availability of safe and decent
life-cycle housing in the City.
But-For Analysis
Current Market Value 12,760,300
New Market Value - Estimate 60,868,430
Difference 48,108,130
Present Value of Tax Increment 12,253,149
Difference 35,854,980
Value Likely to Occur Without TIF is Less Than: 35,854,980
Appendix G-2
Date: June 20, 2017 Agenda Item #: VI .
To:C hair & C ommissioners of the Ed ina HR A Item Type:
R ep o rt / R ecommend atio n
F rom:Bill Neuendorf, Ec o nomic Development Directo r
Item Activity:
Subject:P ropos ed S ale of and R ed evelop ment Agreement fo r
3925, 3930 and 3944 Market S treet
Disc ussio n
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P ME NT
AUT H O R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED :
N o action required; for discussion only.
I N TR O D U C TI O N :
T his item pertains to the sale redevelopment of H R A-owned properties located on M arket S treet (formerly W.
49-1/2 S treet). T his potential transaction is based on the preferred response to the August 2016 R equest for
P roposals. Terms of a S ale and R edevelopment Agreement are presented for preliminary discussion. Action will
be deferred until after a P ublic H earing is conducted on J une 27, 2017.
AT TAC HME N T S :
Description
Staff Report - Market St RDA
Redevelopment Agreement DRAFT 6-20-17
Summary - Sale and RDA
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Economic Development / HRA
Phone 952-826-0407 • Fax 952-826-0390 • www.EdinaMN.gov
Date: June 20, 2017
To: Chair and Commissioners of the Edina Housing and Redevelopment Authority
cc: Scott Neal, Executive Director
From:
Bill Neuendorf
Economic Development Manager
Re: Potential Sale and Redevelopment Agreement – 3925, 3930 and 3944
Market Street (formerly W. 49-1/2 Street)
For the last six months, staff has been meeting with Buhl Investors/Saturday Properties to
negotiate the terms of a property sale and redevelopment agreement for parcels owned by the
Edina Housing and Redevelopment Authority (HRA). Staff has been assisted by special legal
counsel (Dorsey and Whitney) and public finance advisors (Ehlers Associates) in these
negotiations. Buhl Investors/Saturday Properties is the Preferred Development Partner that was
selected after interviewing three different teams who had responded to a Request for Proposal
(RFP) that was issued for the site in summer 2016.
The fundamental redevelopment goals are to improve public parking conditions while enhancing
street life and adding vitality of the business district. This proposal achieves those goals by
replacing an aging and unfriendly 1970’s-era parking structure with below-grade parking and an
expanded North Ramp that includes new commercial space on the street level. The proposal also
adds round-the-clock vitality by including 110 new apartment units and new commercial space
centered upon a new public plaza.
The Edina Planning Commission recommended approval of the project on April 5, 2017. The
project concept secured preliminary zoning approvals from the City Council on April 18, 2017 and
final approvals are anticipated to be granted on June 20, 2017. These land use approvals are
Housing and Redevelopment Authority
Established 1974
Potential Sale and Redevelopment Agreement – 3925, 3930 and 3944 Market Street
June 20, 2017
Page 2
contingent upon execution of a Sale and Redevelopment Agreement mutually agreeable to
Market Street LLC and the Edina HRA.
After working collaboratively with the developer and their team of consultants, staff has reached
tentative agreement on the terms of the real estate transaction and Redevelopment Agreement.
These documents achieve a project that delivers each of the nine qualities on which the original
Request for Proposal measured success:
Measures of Success
(page 8 of RFP)
Summary
1) Compliance with height
restriction and minimized
impact to residential properties
north of the (3930 Market
Street) site
Yes – the 4-story height limit is maintained along the northerly
edge of the business district; additional height is limited to the
interior block where it has negligible impact to single-family
houses behind the North Parking Ramp
2) Assembly of adjacent or
nearby parcels
Yes, this proposal includes 8 parcels in addition to the
vacant parcel at 3930 Market St.
3) Anticipated growth in
taxable value
Yes, the project will return 7 parcels that are vacant or tax
exempt to the property tax rolls; there will be a
tremendous increase in the tax capacity of the
redeveloped parcels.
4) Creation of new public
parking
Yes, the aging Center Ramp will be replaced with new
underground parking in the same location and an
expansion of the North Ramp. A total of 439 new public
parking spaces will be constructed, increasing the existing
public parking by 129 stalls.
5) Creation of new
commercial space
Yes, approximately 35,000 Sq. Ft. of new Class A
commercial street will be constructed to bring new
opportunity to Market Street
6) Creation of new market
rate housing units
Yes, 110 new apartment units will be constructed to bring
new residents to the area; 10% of the units will be
affordably-priced
7) Creation of public plaza
or similar public areas
Yes, the proposal creates a new 5,900 Sq. Ft. public plaza
and a total of 34,000 Sq Ft of pedestrian circulation area
8) Reduction of existing curb
cuts and vehicle-pedestrian
Yes, this proposal eliminates one of the existing curb cuts
and channels pedestrians crossing the street to
Potential Sale and Redevelopment Agreement – 3925, 3930 and 3944 Market Street
June 20, 2017
Page 3
Measures of Success
(page 8 of RFP)
Summary
conflict points designated routes
9) Capacity of team to
complete project
Yes, the developers bring development and management
experience and financial capital; their in-house strength is
supplemented by a team of professionals with expertise in
their field and local knowledge of Edina and 50th and France
The Edina Housing and Redevelopment Authority has reviewed the progress of the negotiations
regularly and met in closed session to discuss the final terms of the proposed real estate
transaction. The complete Redevelopment Agreement and a summary of the key terms are
attached. While the property is currently owned by the Edina HRA, this information is provided to
both the Edina HRA and the Edina City Council for discussion purposes. If approved, both the City
and the HRA will be party to various aspects of the Redevelopment Agreement.
Based on compliance with the goals of the RFP and input from community, staff believes the
redevelopment strategy will result in new public amenities and new commercial space that will
help 50th and France retain its place as a desirable and successful destination for Edina residents
as well as guests from throughout the Twin Cities.
No action is requested today. Instead, a special meeting with a Public Hearing has been
scheduled for Tuesday June 27, 2017 at 7:00 PM at Edina City Hall. Notices of this Special Meeting
have been posted, published and mailed to nearby property owners. Action on the attached
documents is anticipated to be taken after the Public Hearing and further consideration on June
27th.
Staff and representatives from Ehlers Associates and Dorsey & Whitney, the HRA’s advisors and
counsel, will be available to present the key terms of the Agreement and answer related
questions.
END
The CITY of
EDINA
Proposed Sale and Redevelopment Agreement
Edina Collaborative
3925, 3930-3944 Market (formerly W. 49-1/2) Street
1) Project Description
2) Conditions of Sale
3) HRA Loan and TIF
4) Terms & Conditions
Edina City Council
Edina Housing & Redevelopment Authority
June 20, 2017
www.EdinaMN.gov
The CITY of
EDINA
2
Project Description - History
2012 Parking improvements considered but abandoned due to high cost and low return
2013 Edina HRA acquired two parcels for future parking improvements
2014
Parking-only option set aside; preference to mixed-use option that creates street
vitality and encourage patrons to visit more than one business
General repairs and improvements made to all public infrastructure; funded via
Cent. Lakes TIF monies and Special Assessments to 50/France property owners
2016
C. Marohn visits and inquires whether todays customers consider the aging,
lifeless ramps helpful or hurtful to the appeal of 50th & France
Edina HRA issues Request for Proposal to seek creative approaches to
public/private redevelopment on W. 49-1/2 Street
Three developers interviewed; Buhl/Saturday team selected as preferred partner
The CITY of
EDINA
3
Project Description
Public Private Partnership
Market
Street, LLC
City of Edina
and
Edina H.R.A.
The CITY of
EDINA
4
Project Description
Public-Private Partnership consists of
two distinct and symbiotic elements.
When working together, these
projects:
Increase and improve public parking
conditions,
Create new public realm amenities
Add vitality on W. 49-1/2 Street,
Return properties to tax rolls,
Create new living options and new
business opportunities
#1 Expansion of North Parking Ramp
Add 4th parking level
Add parking on adjacent vacant lots
Add 10,000 Sq. Ft. commercial
$10.7 M cost estimate
#2 Construction of Mixed-Use Structure
Demolish existing structure
Add 25,000 Sq. Ft. commercial
Add 110 apartments
New public & private underground parking
Reconstruct shared public plaza and walkways
$74.3 M cost estimate
The CITY of
EDINA
5
Project Description
Before after
The CITY of
EDINA
6
Project Description
The CITY of
EDINA
7
Project Description - Location
All parcels tax-exempt or vacant
The CITY of
EDINA
8
Project Description
Conditions of Sale
•Real estate transaction AND redevelopment – not a simple property
sale
•Closing in two stages
•- Initial transfer of funds before HRA begins North Ramp Expansion
($5.1 M)
•- Second transfer when commercial shell complete ($1 M)
•3944 parcel razed prior to construction (HRA expense)
•Other HRA contributions AFTER building is completed, occupiable
and actual costs verified
The CITY of
EDINA Project Description –
North Ramp Expansion
www.EdinaMN.gov 10
•1.33 acres
•3 parcels – tax exempt
•1 parcel – vacant
•Formerly occupied by
Class C office and retail
space
•262 existing stalls
2018 Schedule
January to
March
Construction begins; temporary
closure to allow 4th level
construction
April to
September
Expansion on 3930 and 3944
parcels; commercial grey box;
finishes and landscaping
Fall North Ramp complete*
* Occupancy of commercial tenant spaces depends
on leasing
The CITY of
EDINA
North Ramp Renderings
Project Description
www.EdinaMN.gov 11
3944
Retail
3944 expansion 3930 expansion
3930
Retail
The CITY of
EDINA Project Description
Budget – North Ramp Expansion
12
Description Amount Pct.
Environmental remediation $ 149,285 1%
Parking expansion $ 8,012,014 75%
Retail shell construction (paid by developer) $ 621,120 6%
Sidewalks, landscaping, screening $ 345,840 3%
Architecture/engineering $ 562,600 5%
Construction Management $ 384,348 3.5%
Other soft costs $ 115,959 1%
Contingency $ 501,837 5%
Total Estimated Costs $ 10,700,207
Approx $34,000
per stall
(excluding real
estate &
demolition)
The CITY of
EDINA Project Description –
North Ramp Expansion
www.EdinaMN.gov 13
•Expanded from 262 to 573
public stalls
•Creation of approx. 10,000
Sq. Ft. Class A commercial
space
•Commercial space sold to
Developer for $1 M
•$10.7 Million cost estimate
(design and construction)
Revenue Sources
$6,100,000 Land Sales
$621,120 Developer contribution
$3,808,114 Cent. Lakes TIF monies
(CIP 15-224)
$170,973 Enviro. grant (pending)
$10,700,207 TOTAL
The CITY of
EDINA Project Description –
South Side Reconstruction
www.EdinaMN.gov 14
•1.53 acres
•5 parcels
•Tax-exempt since
1977
•310 existing stalls to
be relocated
2018-2019 Schedule
Jan. 2018 Real estate transaction
March –April
2018
Demolition and sitework begins after
North Ramp 4th level expansion
substantially complete
Summer 2018 Below grade and commercial street
level constructed
Fall 2018 –
Summer 2019
Above-grade construction
Early Fall 2019 Apartments & public spaces complete
* Occupancy of commercial tenant spaces depends on leasing
The CITY of
EDINA
Mixed-Use Renderings
Project Description
www.EdinaMN.gov 15
The CITY of
EDINA
Mixed-Use Renderings
Project Description
www.EdinaMN.gov 16
The CITY of
EDINA
Mixed-Use Renderings
Project Description
www.EdinaMN.gov 17
The CITY of
EDINA
Mixed-Use Renderings
Project Description
www.EdinaMN.gov 18
The CITY of
EDINA
Mixed-Use Renderings
Project Description
www.EdinaMN.gov 19
The CITY of
EDINA Project Description
Budget – South Site Redevelopment
20
Description Amount Pct.
Acquisition and Site Costs $ 9,200,859 12.4%
Construction Costs $ 51,404,068 69.2%
Permits & Fees $ 796,509 10.7%
Professional Services $ 3,860,683 5.2%
Financing Costs $ 5,140,282 6.9%
Project Management $ 2,841,888 3.8%
Operations & Marketing $ 1,024,038 1.4%
Total $74,268,328
Construction Costs
Parking levels $8.4 M
Outdoor plaza $1.8 M
Site prep/demo $2.5 M
$12.7 M
The CITY of
EDINA Project Description –
South Site Reconstruction
www.EdinaMN.gov 21
•Land sold for $5.1 million
•Creation of approx. 25,000 Sq. Ft.
Class A commercial space
•Creation of 110 apartments, 11 of
which are affordably-priced
•Creation of underground public
parking and underground private
parking
•Creation of public plaza and public
walkways
•$74.3 Million cost estimate (design
and construction)
Revenue Sources
$18,543,755 Equity (includes $700k
deferred developer fee)
$41,900,000 Primary Financing (Debt)
$2,324,573 Grants (pending)
$700,000 HRA Affordable Housing
Loan
$10,100,00 TIF Note
$74,268,328 TOTAL
The CITY of
EDINA
•City policy requires housing that is
“affordably” priced
•- Developer will commit to 10% of
the units targeted to households
earning no more than 60% of AMI
•- $1.4 to $1.9 Million lost revenue
(depending on unit size)
•- Unable to reach agreeable
finance terms with Edina Housing
Foundation
22
HRA Affordable Housing Loan
Key question to consider:
Without increasing the density or
eliminating other public elements, how
will the affordable units be financed?
gap
The CITY of
EDINA
Recommended Solution
•$700,000 loan from existing HRA monies to
fund lost earnings on 5% of units
•- Issued after affordable units completed
•- 15-year term loan
•Interest only with lump sum at term
•1% annual interest plus “true-up” at term to
match inflation (2.5% max, annually)
•Developer defers fee for 10-years to pay for
remaining 5% units
•- 10-year term of affordability
23
HRA Affordable Housing Loan
Option to consider:
HRA could contribute more $ if
it is desired to keep units
affordable for more than 10
years
gap
The CITY of
EDINA
HRA sale and City zoning approvals
contingent on creation of new public
parking, new public plaza and new public
walkways
•TIF-eligible expenses estimated to be
$12.7 million
•Creates a financing gap that cannot be
funded with traditional debt
•Developer’s equity contribution is higher
than typical projects
•Grant funds sought to reduce gap
•Developers’ anticipated return is lower
than typical projects 24
Incremental Taxes (TIF)
Key conclusion:
“But for” the use of TIF to bridge
the remaining gap, the project
will not move forward
gap
The CITY of
EDINA
Recommended Solution
•$10.1 Million pay-as-you-go TIF Note
•Note issued at closing
•Payments begin approx. 6 months after
verification of actual expenses and project
completion
•- Based on 90% of increment
•26-year repayment
•Note bears 6% interest after completion
•Could be repaid early, if taxes generated
exceed estimate
25
Incremental Taxes (TIF)
gap
Key conclusion:
“But for” the use of TIF to bridge
the remaining gap, the project
will not move forward
The CITY of
EDINA
•Retain affordability of units for
10-15 years
•Provide permanent easement
for public plaza, public
walkways, shared trash rooms
and underground public
parking
•Manage underground public
parking
Responsibilities
Terms & Conditions
26
Responsibilities of Developer
•Bear financial risk of design,
acquisition and construction
•Bear City costs related to TIF
creation & RDA negotiation
•Coordinate construction of
North Ramp expansion and
Mixed-Use
The CITY of
EDINA
Commitments of City / HRA
•Enable TIF public finance tool
•Consent to grant applications
•Transfer ownership of land
•Expand North Parking Ramp
•Provide gap financing for mixed-
use development and affordably-
priced units
Responsibilities
Terms & Conditions
27
•Reimburse for maintenance of
underground public parking and
shared trash rooms
•- expenses distributed via annual
District maintenance
assessments
•Maintain public plaza and
walkways
•- expenses distributed via annual
District maintenance
assessments
The CITY of
EDINA
•Developer to manage and schedule
regular maintenance
•City to determine rates, hours of
operation and public use policy
•City to reimburse Developer for regular
maintenance expenses
•- these expenses to be included in
annual assessments to 50th and France
property owners
Underground Public Parking Easement
Terms & Conditions
28
Responsibilities of Developer
•Construct a two-level underground
parking facility
•Provide a permanent public
easement to allow public parking on
the first underground level
•Approx 128 stalls with stairway and
elevator access to street level
•Developer to retain ownership of
structure
The CITY of
EDINA
•Developer to retain ownership of
below-grade structure
•City to determine hours of operation
and public use policy
•City to manage and schedule regular
maintenance
•- these expenses to be included in
annual assessments to 50th and
France property owners
Public Plaza & Walkway Easement
Terms & Conditions
29
Responsibilities of Developer
•Construct outdoor plaza with seating,
landscaping, water feature and fire pit
•Provide a permanent public easement
to allow public use of this outdoor
space
•Approx. 4,900 Sq. Ft. of plaza and
7,400 Sq. Ft. of shared street/woonerf
•Total pedestrian circulation area is
approx. 34,000 Sq. Ft.
The CITY of
EDINA
•Developer to manage and schedule
regular maintenance
•City to determine public use policy
•City to reimburse Developer for disposal
and hauling fees as well as regular
maintenance expenses
•- these expenses to be included in
annual assessments to 50th and France
property owners
Shared Trash Rooms Easement
Terms & Conditions
30
Responsibilities of Developer
•Construct waste collection rooms for
the shared use of merchants located
on this entire city block
•Provide a permanent public
easement to allow shared use of the
trash rooms
•Developer to retain ownership of
structure
The CITY of
EDINA
•Valet parking service provided at
Developer expense
•- approx. 3 weeks when public parking
is minimal (April/May 2018)
•- three temporary valet locations
anticipated
•- off-site vehicle parking at nearby off-
street parking lots
•- hours and days based on business
input and demand
Interim Public Parking Solutions
Terms & Conditions
31
Responsibilities of Developer
•Most invasive construction work
scheduled during period with lowest
parking demand (Jan through April)
•Construction staggered to reduce or
eliminate parking impact during
highest parking demand (Nov-Dec)
•Contractors and subcontractors
required to park off-site
•Material staging and storage areas
located off-site
The CITY of
EDINA
Risks, Precautions and Remedies
Terms & Conditions
32
Remedies in case of default
•Unable to secure financing – HRA
retains land and delays project
•Unable to complete apartments – No
TIF payments required; No loan
awarded; potential reversion (subject
to mortgage provisions)
•Unable to purchase north
commercial boxes, or unable to
begin south site - HRA retains space
and retains $600k to construct shell
Precautions to minimize City’s
Risk
•Go ahead letter required before
bids awarded
•Most land proceeds secured up
front
•TIF Lookback provisions
•Loan issued after completion
•TIF payments after completion
The CITY of
EDINA Summary & Recommendation
33
City staff, legal counsel and financial advisors
have reviewed the financing plans of the
developer and drafted the Redevelopment
Agreement. It is recommended that the
Redevelopment Agreement be approved and
staff be authorized to implement the terms.
The CITY of
EDINA
34
Thank You.
City staff, and advisors from Dorsey,
and Ehlers are available to answer
questions.