HomeMy WebLinkAbout2018-05-10 HRA Regular Meeting Agenda PacketGood morning.
I am unable to attend this morning's meeting but wanted to present these
suggestions as alternative ideas to the stairs currently in the sketch plan for the
Grandview towers / art center development.
I believe the stairs need to be changed from straight up/ down, Aztec/Mayan
pyramid style, to a safer, more accessible option for people to use. A switchback
style would be more inviting as a possible way to go up/down that hill.
I have spent 45 years working with people with disabilities to design and navigate
environments. Stairs don't work for very many people. I know there is an
elevator in the design at the art center (another by the garage?) to mitigate the
stair problem. However, if the plan is to have community & family events on the
green you will probably see that the 1-2 elevators will not safely evacuate the
area in a crisis when you consider families with strollers and people with mobility
issues.
I believe those stairs represent a risky situation for people and the city.
Thank you for considering changing this feature.
Sharon Gregoire
5101 West 44th St.
Edina
Combination steps and ramping????
Stairs and Switchback path. Rest areas and /or exercise options such as those at Bredesen at each "V"
intersections.
Gravel path option., ;,Y.
Another option above with paving and handrails.
Landscaping.... incorporate water efficiency and drought resistant - minimal maintenance — no mowing!!
Page 1
MINUTES
OF REGULAR MEETING
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 26, 2018
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the HRA meeting to order at 7:32 A.M.
II. ROLLCALL
Answering rollcall were Commissioners Fischer, and Chair Hovland and Stewart. Absent: Commissioners
Brindle, and Staunton.
III. APPROVAL OF MEETING AGENDA
Motion made by Commissioner Stewart seconded by Commissioner Fischer approving the
Meeting Agenda.
Ayes: Fischer, Hovland, Stewart
Absent: Brindle, Staunton
Motion carried.
IV. CONSENT AGENDA ADOPTED
Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the
consent agenda as revised to remove Item B. Request for Purchase for Vernon Avenue and
Interlachen Blvd Intersection Design and Bidding Services, Improvement No. A-273, and Item C.
Request for Purchase for Employee Shuttle for North Ramp Construction, as follows:
V. A. Approve minutes of April 12, 2018 Regular HRA Meeting.
Ayes: Fischer, Hovland, Stewart
Absent: Brindle, Staunton
Motion carried.
ITEMS REMOVED FROM THE CONSENT AGENDA
V.B. Request for Purchase for Vernon Avenue and Interlachen Blvd Intersection Design and
Bidding Services, Improvement No. A-273
Commissioner Fischer stated the City initiating this work, was starting improvements in the Grandview District,
that may take 20 years.
Motion made by Commissioner Fischer seconded by Commissioner Steward approving the
contract for design and bid services for Vernon Avenue and Interlachen Blvd Intersection Design
and Bidding Services, Improvement No. A-273 to Short Elliot Hendrickson, Inc. in the amount of
$62,543.00.
Ayes: Fischer, Hovland, Stewart
Absent: Brindle, Staunton
Motion carried.
V.C. Request for Purchase for Employee Shuttle for North Ramp Construction
Commissioner Fischer said he felt like the City was making all the compromises. Economic Development
Director Neuendorf explained he was getting push back the City was not doing enough to assist business during
construction. Mr. Neuendorf said if the shuttle service was not used, it would be cancelled.
Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the
contract for shuttle service during construction of the North Ramp to Total Transportation
Corporation at an all-inclusive hourly rate of $117.00.
Ayes: Fischer, Hovland, Stewart
Absent: Brindle, Staunton
Motion carried.
Minutes/HRA/April 26, 2018
Page 2
V. REPORTS/RECOMMENDATIONS – (Favorable vote of majority of HRA Board Members
present to approve except where noted).
V.A. Grandview Green: Updated Concept for Freeway Lid over Highway 100
Mr. Neuendorf said the initial lid concept received approval from the Minnesota Department of Transportation
(MnDOT) which allowed staff to move forward and work with others on concept planning. The presentation
was an update on this work. The team of presenters included: Bill Neuendorf, Economic Development Manager;
Katie Clark Sieben, Project Consultant; Jake Coryell, ASLA/Landscape Architect, Confluence; Chad Millner,
Engineering Director; Tara Brown, Sustainability Coordinator; Katy Sen, Lobbyist, Messerli & Kramer; and Nick
Anhut, Ehlers & Associates. The team presented the history of the Grandview District, concept update, technical
studies, policy, and financial overview. Staff asked the HRA for direction. Commissioners feedback included:
• Mission Statement should make clear the importance of costs and benefits to taxpayers
• Include lower density and more green space
• Concern expressed that the Grandview District could compete with 50th & France
The HRA was in favor of signing a Memorandum of Understanding (MOA) with MnDOT and beginning to
negotiate lease. The HRA directed staff to continue refining the Concept Plan allowing a decision whether to
include the District into the Comprehensive Plan to be made when there was more detailed data available to
aid in guiding the decision.
VII. CORRESPONDENCE
No correspondence.
IX. HRA COMMISSIONERS COMMENTS
No comments.
X. EXECUTIVE DIRECTOR’S COMMENTS
No comments.
XII. ADJOURNMENT
There being no further business on the HRA Agenda, Chair Hovland adjourned the meeting at 9:07 a.m.
Respectfully submitted,
Scott Neal, Executive Director
4835-1551-3701\1
SECOND AMENDMENT
to
REDEVELOPMENT AGREEMENT
by and among
THE CITY OF EDINA, MINNESOTA,
THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF EDINA, MINNESOTA,
and
EDINA MARKET STREET LLC
Dated as of
May ___, 2018
THIS DOCUMENT WAS DRAFTED BY:
Dorsey & Whitney LLP
50 South Sixth Street, Suite 1500
Minneapolis, MN 55402-1498
4835-1551-3701\1
SECOND AMENDMENT TO
REDEVELOPMENT AGREEMENT
THIS SECOND AMENDMENT TO REDEVELOPMENT AGREEMENT (this
“Amendment”) is made and entered into this ___ day of May, 2018 (“Effective Date”), among
the CITY OF EDINA, MINNESOTA, a Minnesota statutory city (the “City”), the HOUSING
AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA, a
public body corporate and politic organized and existing under the laws of the State of
Minnesota (the “Authority”) and EDINA MARKET STREET LLC, a Minnesota limited
liability company (“Developer”) (together, the “Parties”).
RECITALS
WHEREAS, the City, the Authority and Developer are parties to a Redevelopment
Agreement dated June 27, 2017, as amended by First Amendment to Redevelopment Agreement
dated December 19, 2017 (collectively, the “Redevelopment Agreement”) and all capitalized
terms used in this Amendment shall have the meaning given them in the Redevelopment
Agreement; and
WHEREAS, the Parties have agreed to amend the Redevelopment Agreement on the
terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the promises and the mutual obligations of
the Parties hereto, each of them does hereby covenant and agree with the other as follows:
1. Valet Parking. The following is hereby added at the end of Section 5.10 of the
Redevelopment Agreement:
“Notwithstanding anything to the contrary in this Section 5.10, the
following provisions shall control as of the Effective Date and any of the
provisions of Section 5.10 not inconsistent with the following shall remain in full
force and effect after the Effective Date:
As of the Effective Date, the City has hired and holds the contracts for (i)
a parking management service to oversee public parking operations in the Project
Area and (ii) a valet parking service to provide the valet services described in
Section 5.10. The City shall continue to hold and manage such contracts and
service providers through the substantial completion of the North Ramp
Improvements (anticipated to be on or about September 30, 2018). Each such
service provider will be a reputable vendor who is mutually acceptable to the City
and Developer
Developer shall be responsible for 22% of the costs incurred by the City
for (a) such parking management services for the period from April 1, 2018
through September 30, 2018, and (b) such valet parking services, and
miscellaneous costs, such as signage, related to the valet parking, for the period
from May 1, 2018 through September 30, 2018. The City shall be responsible for
the remaining 78% of all such costs and 100% of such costs incurred after
2
4835-1551-3701\1
September 30, 2018. Developer shall reimburse the City for Developer’s share of
actual costs incurred on a monthly basis upon presentation of invoices and other
documentation of such costs. Any increase or decrease in the level or hours of
valet service must be mutually agreed upon.
Developer shall continue to be solely responsible for the cost of securing
the off-site parking at Mercy Covenant Church in accordance with this Section
5.10.”
2. Entire Agreement. Except as herein amended, other terms and provisions of the
Development Agreement, as amended, shall remain in full force and effect.
3. Ratification. Except as specifically modified by this Amendment, the terms and
provisions of the Redevelopment Agreement shall remain in full force and effect.
4. Binding Effect. This Amendment amends and supplements the Redevelopment
Agreement. If there is a conflict between the provisions of the Redevelopment Agreement and
this Amendment, the provisions of this Amendment shall control. This Amendment shall be
binding upon and inure to the benefit of the City, the Authority, Developer, and their respective
successors and assigns.
5. Counterparts. This Amendment may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Facsimile or email copies shall be deemed originals.
[SIGNATURES APPEAR ON FOLLOWING PAGES]
[Signature Page to Amendment to Redevelopment Agreement]
4835-1551-3701\1
IN WITNESS WHEREOF, the City, the Authority and Developer have caused this
Amendment to be duly executed in their names and on their behalf, all on or as of the date first
above written.
CITY OF EDINA, MINNESOTA
By: _____________________________
Mayor
By: _____________________________
City Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of
________________, 2018, by James B. Hovland and Scott Neal, the Mayor and City Manager
respectively, of the City of Edina, Minnesota, on behalf of the City of Edina.
Notary Public
[Signature Page to Amendment to Redevelopment Agreement]
4835-1551-3701\1
HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF EDINA,
MINNESOTA
By: ______________________________
Chair
By: ______________________________
Secretary
Reviewed and Approved:
__________________________________
Scott H. Neal
Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of
________________, 2018, by James B. Hovland and Robert Stewart, the Chair and Secretary
respectively, of the Housing and Redevelopment Authority of the City of Edina, Minnesota, on
behalf of said Authority.
Notary Public
[Signature Page to Amendment to Redevelopment Agreement]
4835-1551-3701\1
EDINA MARKET STREET LLC
a Minnesota limited liability company
By: Edina Market Street Manager LLC
a Minnesota limited liability company
Its: Managing Member
By: __________________________________
Peter Deanovic
Its: Chief Executive Officer
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ___ day of
________________, 2018, by Peter Deanovic, the Chief Executive Officer of Edina Market
Street Manager LLC, a Minnesota limited liability company, the Managing Member of Edina
Market Street LLC, a Minnesota limited liability company, on behalf of the limited liability
company.
Notary Public
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Date: May 10, 2018
To: Members of the Edina Housing & Redevelopment Authority
From: Bill Neuendorf, Economic Development Manager
Subject: Request for Purchase – Total Transportation Corporation
Purchase
Subject to:
☒List Quote/Bid
☐State Contract
☐Service Contract
The
Recommended
Bid is:
☐Within Budget
☒Not Within Budget
Interstate Parking Company is the recommended service provider. Over the past four months, two
different valet companies have provided service to this project. Recurring problems caused the
development partner to terminate those agreements.
Interstate Parking is already engaged and has an effective experienced manager on site. In this case, a higher
hourly wage is preferred since tips are discouraged. Most valets work for tips and a higher wage has proven
necessary to secure more experienced employees.
Valet service is anticipated to continue at the current level. Staffing adjustments will be made based on the
management oversight currently being provided by Interstate Parking.
Date Bid Opened or Quote Received: Bid or expiration Date:
May 3, 2018 NA
Company: Amount of Quote or Bid:
Interstate Parking Company
Uptown Valet
Unparalleled Parking
$25.00 per hour of service
$17.50 per hour plus daily fee per worker
$20.00 per hour plus daily fee per worker
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 professional service contract is from a combination of TIF funds and sales proceeds from
the sale of the Center Parking Ramp and the North Ramp retail space. The developer has agreed to
continue the cost-sharing arrangement. The developer will pay for 22 percent of total costs while the Edina
HRA will pay for the remaining 78 percent.
Environmental Impact
Minimal, if any.
Community Impact
The reduction in available parking during the simultaneous construction of the North Ramp and
Nolan Mains/Center Ramp has proven useful. While the service was slow to be embraced by many
businesses and customers, the usage has increased over the past several weeks.
Based on the usage and high level of customer service expected at 50th and France, an experienced
and well-managed operation is essential to maintain the credibility and support for local
businesses.
197572v1 1
FIRST AMENDMENT TO PROFESSIONAL
SERVICES AGREEMENT
AMENDMENT made this ________ day of ___________________, 2018, by and between
the EDINA HOUSING AND REDEVELOPMENT AUTHORITY, a public body corporate and
politic under the laws of the state of Minnesota ("HRA") and INTERSTATE PARKING
COMPANY OF MINNESOTA LLC, a limited liability company under the laws of the State of
Minnesota ("Manager").
IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES
AGREE AS FOLLOWS:
1. AMENDMENT. The HRA and Manager entered into a Professional Services
Agreement dated April 12, 2018 (“Agreement”). The Agreement shall remain in full force and
effect, except as amended by this First Amendment.
2. CONTRACT DOCUMENTS. The Agreement is hereby amended to include a
valet operation that will be governed by the terms set forth in the Valet Parking Operations – Scope
of Services attached hereto as Exhibit “A”.
4. INDEMNIFICATION. Paragraph 7 of the Agreement is amended to provide:
INDEMNIFICATION. Manager shall indemnify and hold harmless the HRA, its
officers, agents, and employees, and Edina Market Street LLC of and from any and
all claims, demands, actions, causes of action, including costs and attorney's fees,
arising out of or by reason of its negligence in the execution or performance of the
services provided for herein and further agrees to defend, at its sole cost and
expense, any action or proceeding commenced as a result of its negligence
hereunder.
5. INSURANCE. Paragraph 8 of the Agreement is amended to provide:
INSURANCE. Manager shall secure and maintain such insurance as will protect
Manager from claims under the Worker’s Compensation Acts, and from claims for
bodily injury, death, or property damage which may arise from the performance of
services under this Agreement. Such insurance shall be written for amounts not less
than:
A. Commercial General Liability on an occurrence basis with Contractual
Liability Coverage:
197572v1 2
Limits:
General Aggregate $1,000,000
Personal and Advertising Injury $1,000,000
Each Occurrence (Combined Bodily Injury $1,000,000
and Property Damage)
B. Automobile Liability – Combined single limit $1,000,000
each occurrence for bodily injury and property
damage covering owned, non-owned and
hired automobiles
C. Garagekeepers Legal Liability each occurrence $500,000
The HRA and Edina Market Street LLC shall be named as an additional insured on the commercial
general liability policy and the automobile liability policy on a primary and noncontributory basis.
Before commencing work, the Manager shall provide the HRA a certificate of insurance evidencing
the required insurance coverage in a form acceptable to HRA.
Dated: __________________, 2018. EDINA HOUSING AND
REDEVELOPMENT AUTHORITY
BY: _______________________________
James Hovland, Its Chair
BY: ________________________________
Robert J. Stewart, Its Secretary
Dated: __________________, 2018. INTERSTATE PARKING COMPANY
OF MINNESOTA LLC
BY: _______________________________
Its: _______________________
Edina HRA – Interstate Parking of Minnesota May 10, 2018
Valet Scope of Services Page 1
EXHIBIT A
Valet Parking Operations - Scope of Services
Interstate Parking Company of Minnesota, LLC (IPC) will provide valet parking services (the “Valet
Service”) during the expansion of Edina’s North Parking Ramp (3940 Market Street) and the construction
of the Nolan Mains project (3925 Market Street) that removes the Center Parking Ramp from service.
The Scope of Services are valid as of the date executed by the Board of the Edina HRA.
1) Service Hours and Location
a. IPC shall provide professional valet parking services during the following hours. These hours can be
expanded or contracted upon mutual prior consent.
i. Monday through Friday, 8:00 a.m. to 6:00 p.m.
ii. Saturday 10:00 a.m. to 6:00 p.m.
iii. Sunday – none
b. Two valet stands shall be staffed at these times. One stand (the “Halifax location”) is located on
northbound Halifax Avenue, north of W. 50th Street, near D’Amico and Sons. The second stand (the
“Market Street location”) is located on eastbound Market Street, west of France Avenue, near
Spalon Montage. Both the Halifax location and the Market Street location (collectively, the
“stands”) are located on public sidewalks. The Market Street location may shift into the North
Parking Ramp as early as May 14, 2018 provided that adequate parking stalls are available. The
relocation of the Market Street location shall only occur upon mutual prior consents from both
parties.
c. An off-site parking lot has been secured to park vehicles from the valet at Mercy Covenant
Commons Church – 4201 West 50th Street. Vehicles may also be parked on City streets, except in
those stalls posted with 1-hour time limits. A level of the North Ramp is anticipated to be
designated for valet use or valet-assist in mid-May. The lower-most level is anticipated for this
purpose.
d. Vehicles shall be allowed to be parked on private properties only if IPC has secured express
approval from the property owner.
2) Customer Service Expectations & Staffing
a. This is a highly visible service being provided to customers and businesses with high expectations
for customer service. IPC shall provide professional valet services to the customers and employees
of businesses located in the Edina portion of the 50th and France commercial area. The valet
attendants serve as ambassadors. They make the first and last impressions on customers.
b. All staff shall display a professional appearance at all times they are on site at the stands
(regardless of whether they are on duty).
Edina HRA – Interstate Parking of Minnesota May 10, 2018
Valet Scope of Services Page 2
c. All staff shall stand outdoors to be clearly visible to customers. A shelter and/or overhead
protection is available at both stands in case of inclement weather. At no times are staff allowed to
sit inside vehicles waiting for customers.
d. A sign must be visibly displayed at any times that a stand is left unattended.
e. All staff shall provide courteous service and be respectful of customers and non-customers. All staff
must comply with the service guidelines contained in this Exhibit A.
f. IPC shall provide staffing as needed or directed by the city per stand at all times to provide service
with a maximum wait time of approximately ten minutes. These attendants are in addition to the
on-site supervisor provided in the PSA between the parties dated April 12, 2018 (the “Original
Agreement”). If the on-site supervisor is also serving as a valet attendant, his or her time shall not
be billed at the hourly rate identified in this Exhibit A, but shall be included in the fixed monthly
rate identified in the Original Agreement.
g. IPC on-site supervisor shall be responsible for managing the attendants each day and making
modifications to staffing as required. Any recommended increase in service hours shall require the
written consent of the Edina HRA representative. Affirmative consent via email communication is
adequate.
h. When not busy with customers, staff shall monitor the area around the stand to clear it of snow,
trash, debris, etc. Pride should be taken in the stand. It is the customer’s first impression of the
area.
i. This service is provided free of charge to customers. Tipping is not expected or required. Staff shall
not request tips. If offered, staff is permitted to accept tips.
j. All claims of damage or misconduct by IPC or its employees must be acknowledged within 24 hours
and addressed within 7 calendar days. To the extent possible, all valid claims shall be resolved
within 30 calendar days.
3) Employees
a. IPC is responsible for training employees in industry standards for valet services.
b. IPC shall obtain a background check on each employee. Any employee with a recent record of
violence or improper conduct is not allowed to provide service outlined in this Exhibit A.
c. All drivers must hold valid driving licenses and be at least 18-years of age. Drivers with a poor
driving record shall not be allowed to provide service at any time.
d. All employees must wear dress casual attire or nicer. Shorts are permitted in warm weather. Open
toe shoes are prohibited. A uniform shirt or jacket with the valet company logo is required at all
times while on duty.
e. Employees shall not smoke or use tobacco products while on duty.
Edina HRA – Interstate Parking of Minnesota May 10, 2018
Valet Scope of Services Page 3
f. Employees shall be courteous at all times.
g. Upon request, the HRA Representative or designee shall provide an orientation to IPC staff so that
they are familiar with the businesses and customers they are serving. Such orientations shall take
place during the regular service hours when customer demand is low.
h. The HRA shall distribute “tip tokens” to local merchants as a gesture to encourage customers to use
the Valet Service without feeling obligated to pay a cash tip. Attendants can exchange earned tip
tokens for an additional incentive. IPC shall be responsible for purchasing gift cards or paying
incentives when earned. The following incentive shall be provided:
i. These tokens have small value due to the higher hourly wage offered to each
employee. Tokens have no cash value but have an exchange value as described
below:
ii. 40 tokens can be exchanged for $10 gift certificate to local merchants such as
Lunds & Byerlys, Caribou, Starbucks, etc.
iii. Alternatively, 10 tokens can be exchanged for $1.00 cash
4) Equipment
a. IPC shall provide a valet stand and a lockable key box at each stand upon commencement of the
Valet Service. If adequate space allows, IPC shall also provide an umbrella or similar means to
clearly identify the location of the stand to the customers.
b. IPC shall provide identification signs at each stand and two directional signs for each stand.
Directional signs shall be mounted on portable sandwich boards or attached to existing streetlights
or similar infrastructure. All mounted locations on public property must be approved prior to
installation. Submit a proof of the signs before installation.
c. IPC shall be responsible for radios, mobile phone(s), ticket stubs and other related equipment
necessary to provide first-class service.
5) Operations
a. IPC shall provide HRA with its internal policy regarding claims made for damage to property.
b. IPC staff shall visually inspect each vehicle and note any damage on the claim ticket prior to
accepting a vehicle.
c. IPC shall visually inspect each vehicle upon delivery to ensure the vehicle is returned in same
condition as when the valet received it.
d. If valet attendant knowingly causes any damage to vehicle, he or she must notify the vehicle owner
upon return of the vehicle and report the potential damage to the on-site supervisor and proper
authorities for resolution.
e. IPC is not liable for theft, losses, or damages occurring to items carried in a vehicle at the Valet
Service, unless IPC causes the theft, loss or damage.
Edina HRA – Interstate Parking of Minnesota May 10, 2018
Valet Scope of Services Page 4
f. Operations at the venue will be under direct supervision by the IPC Management Team.
g. IPC staff and vendors shall park off-site in the church parking lot or on public streets so that priority
parking can be used by customers and employees of the Valet Service.
h. IPC staff shall not park in the valet zones.
i. Designated handicapped parking stalls shall only be used by vehicles displaying valid handicapped
license plates or hang tags. These stalls can be used by guests regardless of whether they use the
Valet Service. No temporary parking by non-designated vehicles will be permitted at any time.
j. Queuing of customer cars is to be avoided unless necessary due to peak demand.
k. IPC staff shall provide a mobile phone number to each valet customer with the clear understanding
that they can call ahead to pre-arrange for vehicle return. This is intended to reduce turn-around
time. It is understood that this service may not be feasible at very busy times of the day.
l. IPC shall use the off-street parking lot, on-street stalls and portions of the North Parking Ramp in a
businesslike manner and in strict accordance with the terms of this Agreement.
m. Tickets/receipts for vehicles will be provided to customers of the Valet Service and will be required
back when guests reclaim their vehicles. Tickets will be provided by IPC.
n. Drivers must obey all traffic laws.
o. Drivers must be respectful of neighbors. Honking and setting off “panic” alarms is not allowed.
p. IPC staff must notify HRA representative of any unsafe conditions of which it becomes aware while
providing the services required in this Exhibit A. HRA will determine, at HRA’s discretion, whether
and to what extent any precautionary warnings, security devices, or security services may be
required to protect patrons in and about the Valet Service.
q. IPC to submit a report that identifies the number of customers served each day at each stand. This
report to be submitted via email on a weekly basis unless other arrangements are made.
6) Billing Rates, Wages and Tips
a. IPC will provide valet parking services at a rate of $25.00 per hour plus tax if applicable per valet
attendant on duty. Staffing required on Holidays will be billed at a time and one half. The out-of-
pocket cost of providing supplies, insurance and other miscellaneous items required to provide the
Valet Service is included in the hourly rate. Actual costs incurred related to tip token incentives
shall be reimbursable in the actual amount with no mark up allowed.
b. This has been promoted as a free service and tips should not be expected or required of any
customer. IPC shall pay employees a fair wage based on the expectation that additional tips will not
be received. While tips may be accepted if offered, no employee shall actively solicit tips.
Edina HRA – Interstate Parking of Minnesota May 10, 2018
Valet Scope of Services Page 5
c. Valet services will be billed only for the actual hours worked by the actual number of employees on
site each day, subject to the 3-hour minimum per valet attendant on duty
d. IPC shall be responsible for payment of employees, compliance with applicable employment laws
and payment of applicable taxes.
e. The cost of services will be split between the HRA and Edina Market Street, LLC. However, the
original invoice is expected to be paid in full by the HRA.
7) Responsibility for Vehicles
a. IPC through its employees shall be responsible for receiving, parking and returning the vehicles left
in their care.
b. Vehicle keys shall always be secured in a locked cabinet, out of clear sight and accessible only to
the parking attendants to prevent theft and vandalism.
c. IPC shall bear responsibility for keys and vehicles when in their possession.
d. IPC shall be responsible for any traffic or parking citation received when the vehicle is in their
possession.
8) Insurance
a. IPC shall be fully liable for all damages caused by its negligence at the Valet Service. The Edina
Housing and Redevelopment Authority assumes no liability for any valet operations and Except for
claims arising out of the negligence of Edina HRA, IPC shall indemnify, defend and hold harmless the
Edina HRA and affiliates against all claims, costs, expenses, and liabilities (including attorney’s fees)
arising from its negligence in providing the services provided or required to be provided hereunder
by IPC, its employees, or agents, or contractors.
9) Transfer and Subcontracting
a. All services outlined in this agreement shall be provided by IPC. No transfer or subcontracting will
be permitted without the express written consent of the HRA representative.
10) Length of Service and Termination
a. This agreement shall be effective from the date executed to Sunday September 30, 2018.
b. Invoices for comparable service provided between May 1, 2018 and the date executed shall be
accepted per the same terms identified in the agreement.
c. IPC shall have exclusive rights to provide valet services related to this project for the complete
duration of this contract, unless terminated for cause.
d. The HRA has the right to terminate this agreement with 3-day prior notice.
Edina HRA – Interstate Parking of Minnesota May 10, 2018
Valet Scope of Services Page 6
e. The HRA has the right to extend the term of service on a weekly basis until October 28, 2018 in the
event that the North Ramp is not fully re-opened by October 1, 2018.
11) Identification of Representatives and Formal Notifications
Any notice by either party to the other shall be deemed to have been duly given, if either
delivered personally, post mail addressed or via email:
If to IPC: Interstate Parking Company of Minnesota LLC
Attn. Alan Kaufman
120 S. 6th Street, Suite 2005
Minneapolis, MN 55402
Telephone No.: (612) 375-1301
Facsimile No.: (612) 375-0013
Email: akaufman@interstateparking.com
With a copy to: Interstate Parking Company of Minnesota LLC
Attn. Tony Janowiec
710 N Plankinton Avenue
Milwaukee, WI 53203
Telephone No.: (414) 274-2861
If to HRA: Edina Housing and Redevelopment Authority
Attention: Bill Neuendorf, Economic Development Manager
4801 West 50th Street
Edina, MN 55424
Email: BNeuendorf@EdinaMN.gov
The City of Edina and development partners at Buhl Investors & Saturday Properties are providing valet
parking for the convenience of customers and employees during the reconstruction and expansion of the
North Parking Ramp. This service benefits the dozens of businesses that are located near the construction site
and who are impacted by the limited parking until the North Ramp is completed in September 2018. The cost
of this service is paid for by the City and Developers with no reimbursement expected from adjacent
businesses or customers.
It is imperative that the customers, patients and clients feel welcome to use the valet service so that
businesses can continue to be successful during this work. Guidelines are provided so that attendants
understand the quality of service that is expected.
Guidelines for Valet Attendants
1) You are the customer’s first point of contact. Please make a good impression. Be
polite. Be courteous. Be engaging. Smile.
2) Stand outside in a visible location so that clients can clearly see you. In case of
inclimate weather, shelter is available so that you can be covered and seen. Do not sit
in your car. Do not sit or stand indoors.
3) Check to see that the valet stand, umbrella and directional signs are properly set up
each morning. Make sure that they are in good condition and visible. If the signage is
missing or looks shabby, please contact your manager.
4) Wear the company uniforms.
5) Use personal mobile phones only for essential communication. Be attentive to clients
and do not get absorbed in mobile phones.
6) While standing at the valet station, maintain a professional appearance. Do not
eat your meal here. This tends to give a bad impression to customers. Drinking is
acceptable but do not leave containers in visible locations.
7) Approach client’s vehicles as they pull up to the valet station. Greet them with a
statement like “Good morning. Thank you for visiting 50th & France.”
8) Hand out cards with “call-ahead” phone number. Encourage clients to call when they
are finished with their appointments so that attendants can get a head start in retrieving
their vehicle.
9) You are ambassadors – be prepared to provide directions to clients if they are
uncertain how to get to their destination.
10) Always make sure that keys are locked and secured.
11) Avoid confused clients. If the valet stand is unattended, post the sign that alerts
clients that you will be back soon. Remove this sign when you return.
12) Thank each client when they retrieve their vehicle at the end of the day.
13) Clients and businesses are advised that tipping is not expected or required for this
valet service. Some clients may offer tips. The City is not opposed to attendants
accepting tips but under no circumstances should clients be treated poorly if they do
not tip.
14) Some clients may give attendants “tip tokens”. These have been distributed to local
businesses as tokens to use the valet service. Please hang onto these tokens – you can
exchange them for gift certificates for local merchants.
15) You are the best eyes on the street. If you see something that is unusual or out of
place. A broken light fixture, overflowing trash can, etc. please pass that information
along so it can be resolved promptly.
16) Protect your turf in a friendly way. Delivery trucks or other vehicles have limited
options to park. While we all need to share the same space, please ask delivery drivers
to move or park in a manner that still allows the valet to be used and visible.
17) Park your private vehicle off-site – either in the Mercy Commons church parking
lot on 50th & Indianola or on the residential street – France Avenue or side streets.
Watch for time limit signs. If you park in front of someone’s house, please be respectful
of their property. Do NOT park your car in front of the valet station. Do not park
your car in front of any business.
18) Know your neighbors. This business district has about 175 businesses – many of
which are locally owned or operated. You’ll see a lot of familiar faces. This area has
thrived because businesses have worked well together. Remember that we are all on
the same team that strives to deliver an outstanding customer experience.
19) Bathroom breaks. The easiest and closest facilities are located in the public hallway
of the 5-0 Mall (next to Title Nine).
If questions arise, please contact a project representative. Pat Tucker is the City’s Project
Communications Coordinator – 952-826-1605 or PTucker@EdinaMN.gov.
3-30-2018
May 10, 2018
Board of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Resolutions 2018-03 and 2018-04 Supporting Affordable Housing at 4100 West 76th
Street
Information / Background:
Aeon, a non-profit real estate developer specializing in affordable housing intends to construct a
new building in Edina. They intend to acquire property located at 4100 West 76th Street with the
intention of razing the existing commercial building and building a new 4-level apartment building.
This property has been available for purchase for several months.
The new building would have about 80 apartment units including a combination of 1-bedroom, 2-
bedroom and 3-bedroom units. Parking would be provided on site. The developer intends to retain
the mature grove of trees in the rear of the property.
The estimated budget for this project is $21.97 million. The Financial Sources and Uses are in the
attached request from Aeon dated March 3, 2018.
The financing of affordably-priced housing is very complex. Pooled resources from several different
investors are typical. It is not unusual for a project of this type to combine financial resources from
6 to 12 different sources.
Aeon intends to apply to Minnesota Housing Finance Authority (MHFA) for their largest funding
source – federal tax credits in the May 2018 cycle. If their Edina application is selected, funding
would be made available for construction in 2019.
The developer requests that the City of Edina, through the Housing and Redevelopment Authority
serve as an early funder of the project. Financial support by local municipalities is taken into strong
consideration when the MHFA evaluates the readiness of a project to secure tax credits.
STAFF REPORT Page 2
The developer requests financial support from the Edina HRA through the use of tax increment
financing (TIF) and through other financial resources available to the Edina HRA. This request is
aligned with the mission and purpose of the Edina HRA and is consistent with the City’s desire to
see new housing delivered at a variety of price points.
The developer intends to pursue other local philanthropic donations to supplement the
contribution from the Edina HRA. In case they are not successful in this local fund raising effort,
they are willing to defer part of their development fee to complete the funding.
Time is of the essence because applications for MHFA funding are due in mid-June 2018.
The MHFR requires that local support be demonstrated by submitting a Resolution of Support that
confirms support for the project. The City/HRA provided a similar resolution in 2015 when Beacon
Interfaith Housing pursued funding for the 66 West Apartments.
Two resolutions have been prepared by staff and the developer. They have been reviewed by the
City Attorney. Resolution 2018-03 pledges financial support using tax increment financing in the
amount of $925,000. This is the initial estimate of available increment in the event that the City and
HRA eventually create a new Housing TIF District. This estimate has been determined by Ehlers
Associates, the City’s financial advisor. This pledge can be revoked in 2020 if Aeon is not successful
in securing funding after three rounds.
Resolution 2018-04 pledges financial support using $3 million of other monies available to the HRA.
The potential sources of these funds include: pooled increment from Southdale 2 or developer
‘buy-in’ contributions in the Affordable Housing Funds. The HRA would determine how it provides
funding in the future, after commitments from other funders are secured. This pledge can be
revoked in December 2018 in case Aeon is not successful in securing MHFA funding in 2018. The
limited time for this pledge is important so that the HRA can retain flexibility in using available
monies elsewhere in case the Edina project is not successfully funded in 2018.
Staff recommends that the HRA approve both of these Resolutions to demonstrate its
commitment to creating new affordably-priced housing in Edina.
Further action will be considered after the MHFA application has been submitted and when the
availability of other financial resources is more fully understood.
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF EDINA
COUNTY OF HENNEPIN
STATE OF MINNESOTA
HRA RESOLUTION NO. 2018-03
SUPPORTING AFFORDABLY-PRICED HOUSING AT 4100 WEST 76th STREET
USING TAX INCREMENT FINANCING
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Edina,
Minnesota as follows:
WHEREAS, the City of Edina recognizes the need to create affordably-priced housing
units to supplement the stock of market rate units available in the marketplace; and
WHEREAS, Aeon, a not-for-profit developer of affordable housing (the “Developer”)
proposes to construct a new multi-family housing project on the site that consists of
approximately 80 rental apartment units targeted as affordably-priced housing, all occupied by
residents with incomes below 60% area median income – for individuals and families (the
“Project”); and
WHEREAS, the Developer signed a Purchase Agreement for the property in May 2018
and is currently seeking funding from several sources to construct the Project in 2019; and
WHEREAS, a variety of grants or other public financial assistance will be required to
build the Project including low-income housing tax credits (“LIHTC”) from the Minnesota
Housing Finance Agency (the “MHFA”); and
WHEREAS, the Project will be developed with the requirements of Minnesota Statutes
§§ 469.174 to 469.1794 (the “TIF Act”), including but not limited to the requirements set forth in
Minnesota Statutes § 469.1761; and
WHEREAS, the Project is estimated to cost approximately $21,975,000 and the
Developer is requesting $925,000 in tax increment financing from the City; and
WHEREAS, the City and the Developer will negotiate a Redevelopment Agreement
governing the Project that will satisfy all requirements of the TIF Act; and
WHEREAS, subject to the requirements of the Redevelopment Agreement governing
the Project and the requirements of the TIF Act, the City will establish a new housing TIF district
pursuant to the TIF Act and 2014 Minnesota Session Laws, Chapter 308, Article 6, Section 8 (the
“Edina Legislation”) that will include the Property (the “Housing TIF District”).
WHEREAS, the establishment of a Housing TIF for the Project and the pledging of the
tax increment to secure a loan for the project will be a local contribution and will assist the
Developer in securing the approvals from the MHFA for LIHTC.
NOW THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority
of the City of Edina endorses the Developer’s application for LIHTC as allocated by MHFA; and
BE IT FURTHER RESOLVED, the Edina Housing and Redevelopment Authority shall
provide, subject to the requirements and conditions of this Resolution, a total of $925,000 in tax
increment financing in order to facilitate the financing of the Project. If MHFA funding is not
approved by December 1, 2020, the Housing and Redevelopment Authority may rescind its
financing commitment to the Project.
Dated: May 10, 2018
Attest: ____________________________ ________________________________
Robert J. Stewart, Secretary James B. Hovland, Chair
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 was duly adopted by the Edina Housing and
Redevelopment Authority at its Regular Meeting of May 10, 2018, and as recorded in the Minutes of said Regular
Meeting.
WITNESS my hand and seal of the City this _________ day of ___________________, 2018.
___________________________________
Scott Neal, Executive Director
901 No 3rd Street, #150, Minneapolis, MN 55401 612-341-3148 Main 612-341-4208 Fax www.aeonmn.org
o
o
o
o
o
1625 Park Avenue, Minneapolis, MN 55404 612-341-3148 612-341-4208 F www.aeonmn.org
1625 Park Avenue, Minneapolis, MN 55404 612-341-3148 612-341-4208 F www.aeonmn.org
o
o
W 76TH STEXISTING PARK
BIKE LANE
AMENITY
RESIDENTIAL
RESIDENTIAL
RAMP DOWN
PLAYGROUND
PUBLIC ART
DROP OFF LANE
PUBLIC ART
MINNEAPOLIS, MN / 05.01.2018 / 18-0530
Aeon - Edina
1CONCEPT SITE PLAN
5/2/2018 Base Value Assumptions - Page 1
Affordable Housing - No Inflation
City of Edina, MN
80 units - 100% as Affordable Class 4d
ASSUMPTIONS AND RATES
DistrictType:Housing
District Name/Number:Special Housing TIF
County District #:SD #273 / WD 1 Exempt Class Rate (Exempt)0.00%
First Year Construction or Inflation on Value 2019 Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District - Specify No. Years Remaining First $150,000 1.50%
Inflation Rate - Every Year:0.00%Over $150,000 2.00%
Interest Rate:4.50%Commercial Industrial Class Rate (C/I)2.00%
Present Value Date:1-Aug-19 Rental Housing Class Rate (Rental)1.25%
First Period Ending 1-Feb-20 Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:Pay 2019 First $139,000 0.75%
Cashflow Assumes First Tax Increment For Development:2021 Over $139,000 0.25%
Years of Tax Increment 21 Non-Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment 2041 First $500,000 1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25%
Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio 32.2123%Pay 2018 First $500,000 1.00%
Fiscal Disparities Metro-Wide Tax Rate 145.0950%Pay 2018 Over $500,000 1.25%
Maximum/Frozen Local Tax Rate: 111.806%Pay 2018 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)111.806%Pay 2018
State-wide Tax Rate (Comm./Ind. only used for total taxes)43.8650%Pay 2018
Market Value Tax Rate (Used for total taxes)0.22182%Pay 2018
Building Total Percentage Tax Year Property Current Class After
Land Market Market Of Value Used Original Original Tax Original After Conversion
Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.
31-028-24-41-0010 2,177,200 4,600 2,181,800 100%2,181,800 Pay 2019 C/I Pref.42,886 Aff. Rental 16,364
2,177,200 4,600 2,181,800 2,181,800 42,886 16,364
Note:
1. Base values are for pay 2019 based upon review of County website on 5.2.2018.
Tax Rates
BASE VALUE INFORMATION (Original Tax Capacity)
Area/
Phase
Prepared by Ehlers & Associates, Inc. - Estimates Only C:\Users\nanhut\Desktop\Edina_4100 76th St Aff Housing TIF Run Model
5/2/2018 Base Value Assumptions - Page 2
Affordable Housing - No Inflation
City of Edina, MN
80 units - 100% as Affordable Class 4d
Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year
Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2019 2020 2021 2022 Payable
Apartments 179,138 179,138 80 14,331,040 Aff. Rental 91,428 1,143 100%100%100%100%2021
TOTAL 14,331,040 91,428
Subtotal Residential 80 14,331,040 91,428
Note:
1. Market values are based upon sample figures for discussion purposes only from the developer. A specific project estimate will be obtained from the City's assessor once preliminary plans are submitted.
Total Fiscal Local Local Fiscal State-wide Market
Tax Disparities Tax Property Disparities Property Value Total Taxes Per
New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit
Apartments 91,428 0 91,428 102,222 0 0 31,789 134,011 1,675.13
TOTAL 91,428 0 91,428 102,222 0 0 31,789 134,011
Note:
1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors
which cannot be predicted.
Total Property Taxes 134,011
less State-wide Taxes 0
less Fiscal Disp. Adj.0
less Market Value Taxes (31,789)
less Base Value Taxes (18,295)
Annual Gross TIF 83,926
WHAT IS EXCLUDED FROM TIF?
TAX CALCULATIONS
PROJECT INFORMATION (Project Tax Capacity)
Prepared by Ehlers & Associates, Inc. - Estimates Only C:\Users\nanhut\Desktop\Edina_4100 76th St Aff Housing TIF Run Model
5/2/2018 Tax Increment Cashflow - Page 3
Affordable Housing - No Inflation
City of Edina, MN
80 units - 100% as Affordable Class 4d
TAX INCREMENT CASH FLOW
Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD
% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment
OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date- - - - 02/01/20
- - - - 08/01/20
- - - - 02/01/21
- - - - 08/01/21
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 33,669 0.5 2021 02/01/22100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 66,597 1 2022 08/01/22100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 98,800 1.5 2022 02/01/23
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 130,295 2 2023 08/01/23
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 161,096 2.5 2023 02/01/24
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 191,220 3 2024 08/01/24
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 220,681 3.5 2024 02/01/25
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 249,494 4 2025 08/01/25100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 277,672 4.5 2025 02/01/26
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 305,231 5 2026 08/01/26
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 332,183 5.5 2026 02/01/27
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 358,542 6 2027 08/01/27
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 384,321 6.5 2027 02/01/28
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 409,533 7 2028 08/01/28100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 434,190 7.5 2028 02/01/29
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 458,305 8 2029 08/01/29
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 481,888 8.5 2029 02/01/30
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 504,953 9 2030 08/01/30
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 527,511 9.5 2030 02/01/31
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 549,572 10 2031 08/01/31100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 571,147 10.5 2031 02/01/32
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 592,248 11 2032 08/01/32
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 612,884 11.5 2032 02/01/33
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 633,066 12 2033 08/01/33
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 652,805 12.5 2033 02/01/34
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 672,109 13 2034 08/01/34
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 690,988 13.5 2034 02/01/35
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 709,451 14 2035 08/01/35
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 727,509 14.5 2035 02/01/36
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 745,169 15 2036 08/01/36
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 762,440 15.5 2036 02/01/37
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 779,331 16 2037 08/01/37
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 795,851 16.5 2037 02/01/38
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 812,007 17 2038 08/01/38
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 827,808 17.5 2038 02/01/39
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 843,261 18 2039 08/01/39
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 858,374 18.5 2039 02/01/40
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 873,154 19 2040 08/01/40
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 887,609 19.5 2040 02/01/41
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 901,746 20 2041 08/01/41
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 915,572 20.5 2041 02/01/42
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 929,094 21 2042 08/01/42
Total 1,762,450 (6,345) (175,610) 1,580,494
Present Value From 02/01/2019 Present Value Rate 4.50%1,036,056 (3,730) (103,233) 929,094
Prepared by Ehlers & Associates, Inc. - Estimates Only C:\Users\nanhut\Desktop\Edina_4100 76th St Aff Housing TIF Run Model
Summary of New Affordable Housing Units Printed 5/9/2018
Total Market Total Per Unit MHFA Met.
Council
Henn.
County
Edina Hsng
Fdtn
Private
Philanthoropy
Edina Market Street /
Nolan Mains Apartments 100 90 10 10%
mix of 50% and 60%
AMI; mix of 1 and 2
beds
15 years $800,000 $80,000 no no no yes no
66 West Apartments 39 0 39 100%
studio units priced at
30% AMI; geared to
young adults
20+$575,000 $14,744 yes yes yes no yes
Aeon / 4100 W. 76th
Proposed 80 0 80 100%
mix of 30%, 50% and
60% AMI; studios to 2-
beds
40+$3,925,000 $49,063 yes yes yes unknown yes
The Loden Apartments
on Lincoln Drive 250 250 0 0%mix of unit sizes; market
rates 0 $0 $0 na na na na na
71 France Apartments 236 236 0 0%mix of unit sizes; market
rates 0 $0 $0 na na na na na
One Southdale Place 232 232 0 0%mix of unit sizes; market
rates 0 $0 $0 na na na na na
Aurora on France Senior
Living 188 177 11 10%
10% of independent and
assisted; target price
undefined
undefined $0 $0
Yorkshire of Edina Senior
Assisted Living at 7151
York Ave.
100 90 10 10%
mostly 1-beds with a few 2-
beds; affordable priced at
50% AMI
not specified conduit
financing $0
Aria Edina Apartments /
66th & York 190 181 9 5%priced at 50% AMI 15 years $0 $0 na na n na na
Millenium of Southdale
on 66th 372 353 19 5%undefined 20 years $0 $0 na na n na na
The Onyx on York 240 240 0 0%mix of unit sizes; market
rates 0 $0 $0 na na n na na
Promenade Residences,
3650 Hazelton 186 186 0 0%mix of unit sizes; market
rates 0 $0 $0 na na n na na
Trammell Crow Senior
Apartments, 5220 Eden
Ave
165 148 17 10%priced at 50% AMI 15 years $0 $0 na na n na na
TOTAL 2,378 2,183 195 8%
Affordable
Other Funders of Affordable Units
unknown
unknown
Project Description Term of
Affordability
HRA Fin. ContributionUnits Anticipated
HRA Funds Available for Affordable Housing Printed May 10, 2018
$4,000,000 Estimated Increment
Collected
2013 to
2021 $2,000,000
Contribution from Opus
Corporation / Loden
Apartments
2017
($275,000)
Payment to Beacon
Interfaith / 66 West
Apartments
2017 ($800,000)Pledge to Market Street
Apartments as Loan 2020
TBD 7250 Apartments /
France Equities
2019 or
2020?$1,860,000
Estimated contribution from
3650 Hazelton Apartments /
Lund Real Estate
2018
or
2019
TBD 4100 W. 76th / Aeon
Apartments 2019?TBD 4100 W. 76th / Aeon
Apartments 2019?
$3,725,000 Approximate Balance $3,060,000 Approximate Balance
This is an estimate only and intended for discussion purposes only.
Southdale 2 TIF Account Affordable Housing "Buy In" Fund
May 10, 2018
Board of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Resolutions 2018-03 and 2018-04 Supporting Affordable Housing at 4100 West 76th
Street
Information / Background:
Aeon, a non-profit real estate developer specializing in affordable housing intends to construct a
new building in Edina. They intend to acquire property located at 4100 West 76th Street with the
intention of razing the existing commercial building and building a new 4-level apartment building.
This property has been available for purchase for several months.
The new building would have about 80 apartment units including a combination of 1-bedroom, 2-
bedroom and 3-bedroom units. Parking would be provided on site. The developer intends to retain
the mature grove of trees in the rear of the property.
The estimated budget for this project is $21.97 million. The Financial Sources and Uses are in the
attached request from Aeon dated March 3, 2018.
The financing of affordably-priced housing is very complex. Pooled resources from several different
investors are typical. It is not unusual for a project of this type to combine financial resources from
6 to 12 different sources.
Aeon intends to apply to Minnesota Housing Finance Authority (MHFA) for their largest funding
source – federal tax credits in the May 2018 cycle. If their Edina application is selected, funding
would be made available for construction in 2019.
The developer requests that the City of Edina, through the Housing and Redevelopment Authority
serve as an early funder of the project. Financial support by local municipalities is taken into strong
consideration when the MHFA evaluates the readiness of a project to secure tax credits.
STAFF REPORT Page 2
The developer requests financial support from the Edina HRA through the use of tax increment
financing (TIF) and through other financial resources available to the Edina HRA. This request is
aligned with the mission and purpose of the Edina HRA and is consistent with the City’s desire to
see new housing delivered at a variety of price points.
The developer intends to pursue other local philanthropic donations to supplement the
contribution from the Edina HRA. In case they are not successful in this local fund raising effort,
they are willing to defer part of their development fee to complete the funding.
Time is of the essence because applications for MHFA funding are due in mid-June 2018.
The MHFR requires that local support be demonstrated by submitting a Resolution of Support that
confirms support for the project. The City/HRA provided a similar resolution in 2015 when Beacon
Interfaith Housing pursued funding for the 66 West Apartments.
Two resolutions have been prepared by staff and the developer. They have been reviewed by the
City Attorney. Resolution 2018-03 pledges financial support using tax increment financing in the
amount of $925,000. This is the initial estimate of available increment in the event that the City and
HRA eventually create a new Housing TIF District. This estimate has been determined by Ehlers
Associates, the City’s financial advisor. This pledge can be revoked in 2020 if Aeon is not successful
in securing funding after three rounds.
Resolution 2018-04 pledges financial support using $3 million of other monies available to the HRA.
The potential sources of these funds include: pooled increment from Southdale 2 or developer
‘buy-in’ contributions in the Affordable Housing Funds. The HRA would determine how it provides
funding in the future, after commitments from other funders are secured. This pledge can be
revoked in December 2018 in case Aeon is not successful in securing MHFA funding in 2018. The
limited time for this pledge is important so that the HRA can retain flexibility in using available
monies elsewhere in case the Edina project is not successfully funded in 2018.
Staff recommends that the HRA approve both of these Resolutions to demonstrate its
commitment to creating new affordably-priced housing in Edina.
Further action will be considered after the MHFA application has been submitted and when the
availability of other financial resources is more fully understood.
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF EDINA
COUNTY OF HENNEPIN
STATE OF MINNESOTA
HRA RESOLUTION NO. 2018-04
SUPPORTING AFFORDABLY-PRICED HOUSING AT 4100 WEST 76th STREET
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Edina,
Minnesota as follows:
WHEREAS; the City of Edina recognizes the need to create affordably-priced housing
units to supplement the stock of market rate units available in the marketplace; and
WHEREAS, Aeon, a not-for-profit developer of affordable housing (the “Developer”)
proposes to construct a new multi-family housing project on the site that consists of
approximately 80 rental apartment units targeted as affordably-priced housing, all occupied by
residents with income below 60% area median income – for individuals and families (the
“Project”); and
WHEREAS, the Project will be owned by a limited partnership to be formed by Aeon;
and
WHEREAS, the Developer signed a Purchase Agreement for the property in May 2018
and is currently seeking funding from several sources to construct the Project in 2019; and
WHEREAS, a variety of grants or other public financial assistance will be required to
build the Project including low-income housing tax credits (“LIHTC”) from the Minnesota
Housing Finance Agency (the “MHFA”); and
WHEREAS, the Edina Housing and Redevelopment Authority has access to funds that
have been collected or could be used to support affordably-priced housing located within the
boundaries of the Southeast Edina Redevelopment Project Area; and
WHEREAS, the Project is estimated to cost approximately $21,975,000 and the
Developer is requesting $3,000,000 in financing from the City through the Housing and
Redevelopment Authority (in addition to $925,000 in tax increment financing through the
establishment of a new housing TIF district pursuant to the requirements and conditions of
Resolution 2018-03); and
WHEREAS, this financing is a local contribution and will assist the Developer in securing
the approvals from the MHFA for housing tax credits.
NOW THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority
of the City of Edina endorses the Developer’s application for LIHTC as allocated by MHFA; and
BE IT FURTHER RESOLVED, the Housing and Redevelopment Authority shall
provide, in accordance with the requirements of this Resolution, a total of $3,000,000 in order to
facilitate the financing of the Project. If MHFA funding is not awarded by December 1, 2018, the
Housing and Redevelopment Authority may rescind its financing commitment to the Project .
Dated: May 10, 2018
Attest: ____________________________ ________________________________
Robert J. Stewart, Secretary James B. Hovland, Chair
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 was duly adopted by the Edina Housing and
Redevelopment Authority at its Regular Meeting of May 10, 2018, and as recorded in the Minutes of said Regular
Meeting.
WITNESS my hand and seal of the City this _________ day of ___________________, 2018.
___________________________________
Scott Neal, Executive Director
901 No 3rd Street, #150, Minneapolis, MN 55401 612-341-3148 Main 612-341-4208 Fax www.aeonmn.org
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1625 Park Avenue, Minneapolis, MN 55404 612-341-3148 612-341-4208 F www.aeonmn.org
1625 Park Avenue, Minneapolis, MN 55404 612-341-3148 612-341-4208 F www.aeonmn.org
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W 76TH STEXISTING PARK
BIKE LANE
AMENITY
RESIDENTIAL
RESIDENTIAL
RAMP DOWN
PLAYGROUND
PUBLIC ART
DROP OFF LANE
PUBLIC ART
MINNEAPOLIS, MN / 05.01.2018 / 18-0530
Aeon - Edina
1CONCEPT SITE PLAN
5/2/2018 Base Value Assumptions - Page 1
Affordable Housing - No Inflation
City of Edina, MN
80 units - 100% as Affordable Class 4d
ASSUMPTIONS AND RATES
DistrictType:Housing
District Name/Number:Special Housing TIF
County District #:SD #273 / WD 1 Exempt Class Rate (Exempt)0.00%
First Year Construction or Inflation on Value 2019 Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District - Specify No. Years Remaining First $150,000 1.50%
Inflation Rate - Every Year:0.00%Over $150,000 2.00%
Interest Rate:4.50%Commercial Industrial Class Rate (C/I)2.00%
Present Value Date:1-Aug-19 Rental Housing Class Rate (Rental)1.25%
First Period Ending 1-Feb-20 Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:Pay 2019 First $139,000 0.75%
Cashflow Assumes First Tax Increment For Development:2021 Over $139,000 0.25%
Years of Tax Increment 21 Non-Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment 2041 First $500,000 1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25%
Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio 32.2123%Pay 2018 First $500,000 1.00%
Fiscal Disparities Metro-Wide Tax Rate 145.0950%Pay 2018 Over $500,000 1.25%
Maximum/Frozen Local Tax Rate: 111.806%Pay 2018 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)111.806%Pay 2018
State-wide Tax Rate (Comm./Ind. only used for total taxes)43.8650%Pay 2018
Market Value Tax Rate (Used for total taxes)0.22182%Pay 2018
Building Total Percentage Tax Year Property Current Class After
Land Market Market Of Value Used Original Original Tax Original After Conversion
Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.
31-028-24-41-0010 2,177,200 4,600 2,181,800 100%2,181,800 Pay 2019 C/I Pref.42,886 Aff. Rental 16,364
2,177,200 4,600 2,181,800 2,181,800 42,886 16,364
Note:
1. Base values are for pay 2019 based upon review of County website on 5.2.2018.
Tax Rates
BASE VALUE INFORMATION (Original Tax Capacity)
Area/
Phase
Prepared by Ehlers & Associates, Inc. - Estimates Only C:\Users\nanhut\Desktop\Edina_4100 76th St Aff Housing TIF Run Model
5/2/2018 Base Value Assumptions - Page 2
Affordable Housing - No Inflation
City of Edina, MN
80 units - 100% as Affordable Class 4d
Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year
Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2019 2020 2021 2022 Payable
Apartments 179,138 179,138 80 14,331,040 Aff. Rental 91,428 1,143 100%100%100%100%2021
TOTAL 14,331,040 91,428
Subtotal Residential 80 14,331,040 91,428
Note:
1. Market values are based upon sample figures for discussion purposes only from the developer. A specific project estimate will be obtained from the City's assessor once preliminary plans are submitted.
Total Fiscal Local Local Fiscal State-wide Market
Tax Disparities Tax Property Disparities Property Value Total Taxes Per
New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit
Apartments 91,428 0 91,428 102,222 0 0 31,789 134,011 1,675.13
TOTAL 91,428 0 91,428 102,222 0 0 31,789 134,011
Note:
1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors
which cannot be predicted.
Total Property Taxes 134,011
less State-wide Taxes 0
less Fiscal Disp. Adj.0
less Market Value Taxes (31,789)
less Base Value Taxes (18,295)
Annual Gross TIF 83,926
WHAT IS EXCLUDED FROM TIF?
TAX CALCULATIONS
PROJECT INFORMATION (Project Tax Capacity)
Prepared by Ehlers & Associates, Inc. - Estimates Only C:\Users\nanhut\Desktop\Edina_4100 76th St Aff Housing TIF Run Model
5/2/2018 Tax Increment Cashflow - Page 3
Affordable Housing - No Inflation
City of Edina, MN
80 units - 100% as Affordable Class 4d
TAX INCREMENT CASH FLOW
Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD
% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment
OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date- - - - 02/01/20
- - - - 08/01/20
- - - - 02/01/21
- - - - 08/01/21
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 33,669 0.5 2021 02/01/22100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 66,597 1 2022 08/01/22100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 98,800 1.5 2022 02/01/23
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 130,295 2 2023 08/01/23
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 161,096 2.5 2023 02/01/24
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 191,220 3 2024 08/01/24
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 220,681 3.5 2024 02/01/25
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 249,494 4 2025 08/01/25100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 277,672 4.5 2025 02/01/26
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 305,231 5 2026 08/01/26
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 332,183 5.5 2026 02/01/27
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 358,542 6 2027 08/01/27
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 384,321 6.5 2027 02/01/28
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 409,533 7 2028 08/01/28100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 434,190 7.5 2028 02/01/29
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 458,305 8 2029 08/01/29
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 481,888 8.5 2029 02/01/30
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 504,953 9 2030 08/01/30
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 527,511 9.5 2030 02/01/31
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 549,572 10 2031 08/01/31100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 571,147 10.5 2031 02/01/32
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 592,248 11 2032 08/01/32
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 612,884 11.5 2032 02/01/33
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 633,066 12 2033 08/01/33
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 652,805 12.5 2033 02/01/34
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 672,109 13 2034 08/01/34
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 690,988 13.5 2034 02/01/35
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 709,451 14 2035 08/01/35
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 727,509 14.5 2035 02/01/36
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 745,169 15 2036 08/01/36
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 762,440 15.5 2036 02/01/37
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 779,331 16 2037 08/01/37
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 795,851 16.5 2037 02/01/38
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 812,007 17 2038 08/01/38
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 827,808 17.5 2038 02/01/39
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 843,261 18 2039 08/01/39
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 858,374 18.5 2039 02/01/40
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 873,154 19 2040 08/01/40
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 887,609 19.5 2040 02/01/41
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 901,746 20 2041 08/01/41
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 915,572 20.5 2041 02/01/42
100%91,428 (16,364) - 75,064 111.806%83,926 41,963 (151) (4,181) 37,631 929,094 21 2042 08/01/42
Total 1,762,450 (6,345) (175,610) 1,580,494
Present Value From 02/01/2019 Present Value Rate 4.50%1,036,056 (3,730) (103,233) 929,094
Prepared by Ehlers & Associates, Inc. - Estimates Only C:\Users\nanhut\Desktop\Edina_4100 76th St Aff Housing TIF Run Model
May 10, 2018
Board of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Request for Tax Increment Financing -
4500 France Avenue
Information / Background:
The buildings formerly occupied by Edina Cleaners at 4500 France Avenue have been vacated.
These buildings are 80-90 years old and obsolete in the marketplace.
The building owner has a contract with a local developer to redevelop the vacant commercial
property and combine it with two adjacent single-family parcels to create a parcel of sufficient size
to construct a new mixed-use building.
The developer has completed the “sketch plan” review process and is preparing plans for formal
consideration. The new building could contain 52 apartments with 7,200 square feet of commercial
tenants on the first floor. Most units would be priced at market rates and 10 percent of the units
are anticipated to be priced at affordable rates. New public and private parking would be
constructed below and within the building.
The developer has requested the use of Tax Increment Financing (TIF) to resolve a financial gap in
the pro forma.
TIF is a public finance mechanism enabled by Minnesota Statute to help provide funding for
redevelopment and housing projects. Simply put, new property taxes generated from this new real
estate investment will remain within the TIF District to help fund the improvements. The existing
property tax base from this site will continue to be available to the taxing agencies like Hennepin
County, Edina School District 273 and City of Edina. At the expiration of the District, the full
property tax base of the parcels in the TIF District will be available to the taxing agencies.
A brief overview of the site follows to begin a discussion regarding the potential involvement of the
Edina HRA in the financing of this redevelopment project.
STAFF REPORT Page 2
Parcel No. Year
Built Acres 2017 Estimated
Market Value
2017 Property
Taxes
Fiscal
Disparities
4500 France x 0066 1928 0.03 $27,900 $5,745 Yes – 40%
4500 France x 0067 1928 0.15 $425,700 $19,720 Yes – 40%
4500 France x 0068 1936 0.47 $520,400 $25,222 Yes – 40%
3905 Sunnyside x 0069 1926 0.2 $400,500 $6,127 No
3907 Sunnyside x 0070 1936 0.2 $434,200 $7,529 No
Total NA 1.05 $1,808,700 $64,343 Mixed
The complete redevelopment of the site is estimated to cost $29 million. This is nearly 15 times
the estimated value of the existing buildings. This will result in a sizable increase to the tax base.
The conversion to predominantly residential use will modify how portions of the tax base is
distributed through Minnesota’s fiscal disparities process. Much more the tax base will remain local.
This change will occur upon completion of the project to the benefit of local taxing jurisdictions
like the County, City and School District.
The estimated cost to redevelop this particular site is high. Some of the expenses that appear
higher than a typical development site include:
• High cost of land
• High cost of land assembly from three different owners
• Building demolition costs
• Environmental remediation costs
• Underground parking costs
• Burial of overhead electric lines
• Lost revenue from apartments leased at affordable rates
• Overall construction costs due to the high quality of materials and finish
The budget is also impacted by the land use limitations in the Small Area Plan, the community’s
request for green transition to the neighboring homes and the community’s interest in
shared/public parking to benefit other businesses in the area.
These expenses lead to a financial gap estimated to be near $5 million - nearly19% of budget. The
developer requests the use of TIF in order to fill the financial gap. The developer is also seeking
funding from other partners to help fill the gap. Without resolving the financial gap, the developer
has indicated that he will not realize a market-rate return on investment and will not move forward
with the project.
Staff has met with the developer’s team to better understand the project’s financial structure.
Based on this introductory conversation and input from the City’s public finance advisor (Ehlers
Associates) staff has reservations about the viability of the project in its current financial
configuration. A local financial subsidy of the degree requested is not recommended, especially
considering that most market-rate projects in Edina stand on their own.
STAFF REPORT Page 3
However, if constructed, this project results in several positive outcomes that would be highly
beneficial to the immediate neighborhood and the community-at-large. These include:
• Removal of vacant, outdated and obsolete commercial buildings
• Remediation of environmental contamination
• Removal of overhead power lines
• Increase in property tax base based on the value of the completed project
• Additional increase in tax base since a lesser portion is distributed through the State’s Fiscal
Disparities program
• Creation of new affordably-priced housing units
• Creation of new modern commercial space
• Improved streetscape with wider sidewalks and outdoor café seating
• Additional green space (secured with public easement) in a district with virtually zero public
green space
• Additional commercial parking (secured with public easement)
Thus, staff recommends that a TIF District be considered on this challenging site so that vacant
property can be redeveloped soon before it has a deleterious effect on the neighborhood.
Staff offers the following recommendation for discussion purposes as the HRA Board considers
financial involvement in this project:
1) Encourage the developer to refine the budget, including the potential reduction in land
assembly costs
2) Encourage developer to pursue other financial resources from Hennepin County,
Metropolitan Council and Minnesota DEED to address some of the grant-eligible costs
(demolition, site preparation, utility work and environmental remediation)
3) Encourage the developer to design the facility to LEED standards and/or include renewable
energy sources to lessen the environmental impact to the local and broader community
4) Pursue the creation of a 26-year Redevelopment District
5) Engage third-party advisor to more completely review the project financials to confirm
financial returns and the level of assistance needed
6) Identify specific line item costs to be reimbursed with incremental taxes, including:
a. lost revenue due to reduced rent of the affordably-priced units,
b. costs related to construction of public parking in excess of that required for the
commercial tenants within the project
STAFF REPORT Page 4
c. costs related to construction of landscaped or hardscaped outdoor lawn area on the
west side secured with a public use easement
d. costs not covered by grants related to environmental remediation
e. costs not covered by grants related to burial of overhead utilities provided that such
burial extends to adjacent properties outside the site boundaries to benefit the
broader district
7) Affordably-priced units financed with TIF to have a term of 26-years and to include a
mixture of 1- and 2-bedroom units priced to households earning no more than 50% Area
Median Income (AMI). Each affordable unit must have access to one parking stall at a
reduced rate ($50 per month, for example).
8) Parking and green space elements financed with TIF to be secured with a permanent public
easement
9) Total reimbursement limited to 5 to 10 percent of total project costs
10) Pay-as-you-go TIF Note issued upon project completion with market-based interest rate
11) “Look-back” provisions to verify that TIF monies were needed upon completion and future
sale of the project during the life of the TIF Note
12) Annual compliance reporting on affordably-priced units
If the HRA is generally supportive of this project concept and recommendation for the use of TIF,
the developer and staff will begin the State-mandated process involved with tax increment
financing. The financial and legal advisors from Ehlers Associates and Dorsey & Whitney will assist
the City and HRA with this work. In accordance with Edina's TIF policy, the cost of these advisors
will be borne by the developer.
# # #
April 11, 2018
| 44500 FRANCE APARTMENTS - EDINA Site PlanSUNNYSIDE ROADFRANCE AVENUE SW 45TH STREET
April 11, 2018
| 54500 FRANCE APARTMENTS - EDINA Floor PlansSUNNYSIDE ROADFRANCE AVENUE SW 45TH STREET
Ground Floor Plan
April 11, 2018
| 104500 FRANCE APARTMENTS - EDINA France Ave & Sunnyside AveProposed Development
April 11, 2018
| 224500 FRANCE APARTMENTS - EDINA Project Metrics
Site Area = Approx 43,124 sf or .99 acres
LOBBY TRASH/
TOTAL GSF PARKING STALLS* RETAIL AMENITY STORAGE APT GSF APT RSF DUs
LEVEL P1 30,695 30,695 70
LEVEL 1 30,213 17,163 40 6,413 2,724 1,754 2,159 1,934 2
LEVEL 2 25,449 2,003 23,446 19,498 20
LEVEL 3 25,449 25,449 21,080 22
LEVEL 4 14,581 14,581 12,336 8
ROOF 580 580
126,967 47,858 110 6,413 5,307 1,754 65,635 54,848 52
*Total does not include up to 7 Tandem spaces on Level P1 RSF/UNIT 1055
GSF/UNIT 1262
4500 France Apartments
BUILDING AREA SUMMARY
A.High Rise Luxury Tower $59,175,932.00 Art Center $16,418,499.00
Affordable Lofts $7,962,584.00 Civic Shared & Lease Parking $11,195,706.00
$67,138,516.00 Plaza/Platform/Ped. Elements $8,740,481.00
$36,354,686.00
B.Mid-rise market residential $36,500,000.00 Art Center $16,418,499.00
Affordable Lofts $7,962,584.00 Civic shared parking $4,102,200.00
$44,462,584.00 Plaza/Platform/ Ped. Elements $3,750,000.00
$24,270,699.00
C.N/A Art Center $16,418,499.00
Civic plaza, landscape $1,000,000.00
$17,418,499.00
D.Sale of property for 100% private use(s).
Notes:5/4/2018
*Estimates subject to full and final programming, design, value engineering, zoning and building permitting requirements.
*Assumes build-ready site; estimates do not include extraordinary site preparation, environmental remediation, soil corrections or major infrastructure modifications
(streets, UG/OH utilities, bridges, stormwater mgmt.)
GRANDVIEW – SITE DEVELOPMENT SCENARIO ANALYSIS
Preliminary Analysis subject to survey, project design, zoning, underwriting and pre-construction site due diligence
Assume development density of approximately
250 units or general commercial / office uses in
the range of 75-100,000 sq. ft. with structured
parking. No public use space included.
Estimated Private Development Costs*Estimated Public Development Costs*Scenario Alternative
30,000 sq. ft. community arts/active adult
center, structured parking, civic green, green
connector, 147-unit residential tower and 27
affordable art lofts.
30,000 sq. ft. community arts/active adult
center, surface parking, landscape/sculpture
garden.
N/A
30,000 sq. ft. community arts/active adult
center, structured parking, civic green, 139
unit mid-rise residential building and 27
affordable art lofts.
Potential development value range from $30,000,000 -
$60,000,000
DJR
ARCHITECTURE INC.
Scenario B - Grandview Site
05.10.2017
Grandview
5146 Eden Avenue S
Edina, MN 55436
The Grandview, EdinaDJRARCHITECTURE INC.
2
N
Site Plan
DJRARCHITECTURE INC.
The Grandview, Edina3
Rendering
The Grandview, EdinaDJRARCHITECTURE INC.
4
View from Our Lady of Grace
Rendering
DJRARCHITECTURE INC.
The Grandview, Edina5
Floor Plans
NLEVEL 1
Scale: NTS
NLEVEL 2
Scale: NTS
Key
Residential
Affordable
Art Center
Common Area
BOH/MEP
Parking
Core
The Grandview, EdinaDJRARCHITECTURE INC.
6
NLEVEL 3/TYPICAL FLOOR
Scale: 1:NTS
Residential
Affordable
Art Center
Key
Common Area
BOH/MEP
Parking
Core
Floor Plans
DJRARCHITECTURE INC.
The Grandview, Edina7
Tower Scheme from 01.10.2018 Low-Rise Scheme from 05.09.2018
Grandview Redevelopment Scenarios A & B Recap
Thank you