HomeMy WebLinkAbout2021-08-12 HRA Regular Meeting PacketAgenda
Edina Housing and Redevelopment Authority
City of Edina, Minnesota
City H all, Council Cham bers
Thursday, August 12, 2021
7:30 AM
Watch the m eeting on cable TV or at EdinaMN.gov/LiveMeetings or
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To participate in Community Comment:
Call 800-374-0221.
Enter Conference ID 8176028.
Give the operator your name, street address and telephone number.
Press *1 on your telephone keypad when you would like to get in the queue to speak.
A City sta7 member will introduce you when it is your turn.
Or attend the meeting to provide testimony, City Hall Council Chambers, 4801 W.
50th St.
I.Call to Order
II.Roll Call
III.Pledge of Allegiance
IV.Approva l of Meeting Agenda
V.Community Comment
During "Community Comment," the Edina Housing and Redev elopment
Authority (HRA) will invite residents to share new issues or concerns that
haven't been considered in the past 30 days by the HRA or which aren't
slated for future consideration. Individuals must limit their comments to
three minutes. The Chair ma y limit the number of speakers on the same
issue in the interest of time and topic. Generally spea king, items that are
elsewhere on today's agenda may not be addressed during Community
Comment. Individuals should not expect the Chair or Commissioners to
respond to their comments today. Instead the Commissioners might refer
the ma tter to sta. for consideration at a future meeting.
VI.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 Commissioners
present to approve.)
A.Dra ft Minutes of Regula r Meeting July 29, 2021
B.Single Family Ownership Preserv ation Program
VII.Reports/Recommendations: (Fa v orable vote of majority of Commissioners
present to approve except where noted)
A.Gra ndv iew Pedestrian Bridge - Project Update
B.7001 France Ave - Project Update
C.Housing Strategy Task Force Implementation Plan
VIII.HRA Commissioners' Comments
IX.Executive Director's Comments
A.Pentagon Village - Project Update regarding Lot 3
X.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: Augus t 12, 2021 Agenda Item #: VI.A.
To:C hair & C ommissioners of the Ed ina HR A Item Type:
Minutes
F rom:Liz O ls on, Adminis trative S uppo rt S p ecialist
Item Activity:
Subject:Draft Minutes o f R egular Meeting July 29, 2021 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 :
Approve the regular minutes of J uly 29, 2021.
I N TR O D U C TI O N :
S ee attached meeting minutes of July 29, 2021.
AT TAC HME N T S :
Description
HRA July 29, 2021 Draft Meeting Minutes
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
JULY 29, 2021
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 7:30 a.m. and then explained the processes created
for public comment.
II. ROLLCALL
Answering rollcall were Commissioners Anderson, Jackson, and Chair Hovland.
Absent: Commissioners Pierce, Staunton.
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED - AS PRESENTED
Motion by Commissioner Jackson, seconded by Commissioner Anderson, approving
the meeting agenda as presented.
Roll call:
Ayes: Commissioners Anderson, Jackson, and Chair Hovland
Motion carried.
V. COMMUNITY COMMENT
No one appeared.
VI. CONSENT AGENDA ADOPTED - AS PRESENTED
Member Jackson made a motion, seconded by Member Anderson, approving the
consent agenda as presented:
VI.A. Approve minutes of the Regular Meeting June 24, 2021
VI.B. Approve Payment of Claims, HRA Check Register dated June 2, 2021, totaling
#135,619.64
Rollcall:
Ayes: Commissioners Anderson, Jackson, and Chair Hovland
Motion carried.
VII. REPORTS/RECOMMENDATIONS
VII.A. RESOLUTION NO. 2021-06; ESTABLISH 4040 WEST 70TH STREET TAX
INCREMENT FINANCING DISTRICT AND MODIFY SOUTHDALE 2 TAX
INCREMENT FINANCING PLAN – ADOPTED
Affordable Housing Development Manager Hawkinson stated this item pertained to the creation of
a new Tax Increment Financing District to support the redevelopment of property at 4040 West
70th Street that included the creation of approximately 118 units of affordable rental housing. This
item also included a modification to the Plan for the existing Southdale 2 Tax Increment Financing
District to recognize the new TIF District and enable the pooling necessary to provide financial
support for affordable housing in Edina. She referred to community support for more affordable
housing in the City and that implementation of this resolution was contingent upon final approval by
the City Council after a public hearing on August 4, 2021. She explained the proposed district in
detail and its benefits if approved that would create a 21-year term with estimated annual increment
of $202,948 and $1.8M in upfront construction proceeds.
Minutes/HRA/July 29, 2021
Page 2
The Commission asked about the interrelationship with Southdale TIF pooled funds and the potential
funding source if established and when the special legislation funds would be exchanged. Ms.
Hawkinson explained the relationship with current pooled funds and said if the project moved
forward with a ground lease the Foundation’s loan would be forgiven as they would maintain
ownership but if not, they could be obligated to pay back the loan for the land. She noted funds
would only be exchanged if approved by the Council at next week’s public hearing.
Commissioner Jackson introduced and moved adoption of Resolution No. 2021-06;
Establishing the 4040 West 70th Street Tax Increment Financing District and Approving
a Tax Increment Financing Plan Therefor. Commissioner Anderson seconded the motion.
Rollcall:
Ayes: Commissioners Anderson, Jackson, and Chair Hovland
Motion carried.
VII.B. RESOLUTION 2021-07; CALL FOR A PUBLIC HEARING ON THE PROPOSED
MODIFICATIONS TO THE REDEVELOPMENT PLAN FOR THE SOUTHEAST
EDINA REDEVELOPMENT PROJECT AREA AND THE SOUTHDALE 2 TAX
INCREMENT FINANCING PLAN – ADOPTED
Economic Development Manager Neuendorf shared this item was to call for a public hearing on the
proposed modifications to the redevelopment plan for the Southeast Edina Redevelopment Project
area and Southdale 2 Tax Increment Financing Plan. He said this action was required to have the
City’s financial advisor create a new plan, share with Hennepin County and the school district, and
recommended its approval.
The Commission asked what triggered this additional review. Mr. Neuendorf shared changes in TIF
law warranted this additional consideration then explained the project area in detail.
Commissioner Anderson introduced and moved adoption of Resolution No. 2021-07;
Requesting the City Council of the City of Edina Call for a Public Hearing on the
Proposed Modifications to the Redevelopment Plan for the Southeast Edina
Redevelopment Project Area and Southdale 2 Tax Increment Financing Plan.
Commissioner Jackson seconded the motion.
Rollcall:
Ayes: Commissioners Anderson, Jackson, and Chair Hovland
Motion carried.
VII.C. 5146 EDEN AVENUE – REDEVELOPMENT PLANNING – APPROVED
Mr. Neuendorf shared this this item pertained to the redevelopment of the HRA's vacant property
located at 5146 Eden Avenue. Based on the needs of the site and direction provided at the June 10,
2021, meeting of the HRA Board, staff had worked with representatives from Frauenshuh and United
Properties to prepare a scope of work. He said this additional work was intended to support the
decision-making process regarding the type of hospitality user to seek out for the northern portion
of the site and that staff recommended approval of the engagement letter that would assist in
identifying potential users for this site for presentation to the Commission later this fall that would
assist in well-informed decisions. He said the goal would be to create a destination-based site.
The Commission thanked the team for their work on this project then asked questions regarding
how much needed to be defined for each area and how much parking would be needed for the
senior housing. They inquired about financial responsibility of the talent pool would be on the HRA
and whether Frauenshuh would be directing the activity or the other consultants. They asked for
clarity regarding Step 1 and the need for clear direction from the HRA surrounding dates and the
goal of achieving a significant public realm and how the City should not be directed by the developer.
Minutes/HRA/July 29, 2021
Page 3
Dave Anderson, Frauenshuh, explained how the site plan would work for sizing and how
approximations would be learned through what would be required.
Mr. Neuendorf explained how Frauenshuh would act as a broker as they were better suited for this
activity and that if no agreement was reached it would be their time at risk. He said the HRA would
hire a parking consultant as part of the review to determine sufficient availability behind Jerry’s
without comprising function. He spoke about the proposed dining function with indoor and outdoor
space and greenspace and the intent to engage Confluence on exploration of greenspace then
outlined safeguards in place on how selections would be made in conjunction with meeting the
construction schedule.
The Commission spoke about the current state of the hospitality industry that followed the
pandemic, the developer’s position on the affordable housing policy and the number of units, and
how they liked the timeframe and progress and understood the engagement letter language was
broad to cover the intent. Mr. Neuendorf responded while there was still some uncertainty that
followed the pandemic restaurant projects were starting to occur within the City and that 10% of
the units were planned for affordability.
Motion by Commissioner Jackson, seconded by Commissioner Anderson, to continue
the redevelopment process and approve the proposed engagement letter with
Frauenshuh and United Properties.
Rollcall:
Ayes: Commissioners Anderson, Jackson, and Chair Hovland
Motion carried.
VII.D. 4917 EDEN AVENUE – REVIEWED
Mr. Neuendorf shared staff completed the preliminary analysis of the developer's request to use Tax
Increment Financing for this site. In this case, TIF could be used to resolve the financing gap in the
developers financial pro forma and also be used to fund some of the desired roadway improvements
in and around the site. He said staff had met with the developers to better understand costs and
identify the financing gap for this $83 million project which would be a good investment in the City.
He said the project included 200 units with 10% affordable units and how escalating construction
pricing, high land cost, and a redevelopment site had created the funding gap. Mr. Neuendorf said
staff was confident they could identify enough new taxes to finance the gap and that there would be
$6.8 million extra that could be used for public improvements in the immediate vicinity such as
transportation needs.
The Commission stated they were not comfortable paying for increased costs and agreed with the
increased tangible public benefit elements but noted that costs of redevelopment was something the
developer had to meet then expressed concerns with the land acquisition costs. Mr. Neuendorf
explained the gap was approximately $5 million and that staff would only recommend a total public
benefit amount they felt would meet the full gap and would return with land comparisons for
Commission review.
VII.E. GRANDVIEW EAST – POTENTIAL TRANSPORTATION IMPROVEMENTS –
REVIEWED
Engineering Director Millner shared staff had engaged Short Elliot Hendrickson (SEH) to prepare
conceptual studies for potential transportation improvements that could address some of the traffic
and safety concerns raised in relation to the redevelopment of 4917 Eden Avenue. He presented a
summary of these concepts along with estimated costs and said some of these improvements could
be funded by the HRA using tax increment financing. He said before these concepts could be refined
and presented to City Council for formal consideration, input was requested regarding the potential
use of HRA funding sources to construct these improvements. Mr. Millner outlined how the
Minutes/HRA/July 29, 2021
Page 4
concepts included improved safety, traffic operations, access and reduced complexity of the existing
roadway network. He reviewed the proposed concepts in detail and costs that ranged from $2.8
million to $4.2 million then asked for feedback.
The Commission inquired about proposed funding sources for any project and if the project was
not approved could they still move forward with a proposed transportation project. They referred
to the public testimony for traffic impacts east on 50th Street and how the Sunnyslope area was
equally impacted and requested more information on how the two roundabouts would not preclude
an offramp and how the public would navigate the area. The Commission spoke about the historic
buildings near the Perkins restaurant and the possibility of relocating. Mr. Neuendorf commented
how TIF funds could be appropriately used for this transportation project and confirmed capacity
for these improvements and but how TIF could not be used to construct a public building.
The Commission spoke about the proposed west promenade improvements. Mr. Millner shared
background on how the proposed improvements could work that would include two 12-foot lanes
with a large shared sidewalk and buffer space for trees and possible fencing. He said funding could
come from the Centennial Lakes TIF district identified for the Promenade Phase IV in 2024 that
totaled $600,000 and would address the area of 69th to 70th and tie into future plans for Valley View
Road.
The Commission complemented staff on their great work in a short period of time and agreed
fencing would be needed on the west side then confirmed that sufficient soil volumes would be
included for healthy tree growth as well as the need for bike paths.
VIII. HRA COMMISSIONERS’ COMMENTS – Received
IX. EXECUTIVE DIRECTOR’S COMMENTS – Received
X. ADJOURNMENT
Motion made by Commissioner Jackson, seconded by Commissioner Anderson, to
adjourn the meeting at 9:04 a.m.
Roll call:
Ayes: Commissioners Anderson, Jackson, and Chair Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Date: Augus t 12, 2021 Agenda Item #: VI.B.
To:C hair & C ommissioners of the Ed ina HR A Item Type:
R ep o rt / R ecommend atio n
F rom:S tep hanie Hawkins o n, Affo rd able Ho us ing
Develo p ment Manager Item Activity:
Subject:S ingle F amily O wnership P reservatio n P ro gram 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 :
Approve an additional $2,000,000 line of credit with West H ennepin Affordable H ousing L and T rust to continue
expanding their H omes Within R each program and preserve moderate priced homes in E dina.
I N TR O D U C TI O N :
O n June 11, 2020 the H R A authorized Staff to engage an attorney to draft legal documents for a $1,300,000 line
of credit loan for the acquisition and rehabilitation of three houses that will be placed into a land trust. O f these
funds, approximately $840,000 will be permanently placed with the homes and function as a grant.
S ince that time, 33 interested sellers have contacted staff. H omes Within R each has P urchase Agreements on
two homes with three additional pending. In order to move forward with acquiring additional homes, more
funding is needed.
AT TAC HME N T S :
Description
Staff Report
Exis ting Agreement
August 12, 2021
Chair and Commissioners of the Edina HRA
Stephanie Hawkinson, Affordable Housing Development Manager
Single Family Ownership Preservation Program
Information / Background:
The City of Edina has been supporting the West Hennepin Affordable Housing Land Trust (WHAHLT), dba
Homes Within Reach (HWR), since 2007 through the allocation of the City’s CDBG program funds. Through
the block grant program, 14 houses have been placed into a Land Trust to remain affordable for 99-years.
In 2020 Edina expanding HWR’s profile within the city by approving a $1,300,000 line of credit of which
$840,000 would be permanently contributed as a grant. The program was designed to expand the Homes
Within Reach profile of affordable ownership homes in Edina by removing funding limitations. There are two
major provisions.
•The HRA provides a grant to fund the creation and preservation of affordable home
ownership in the City of Edina, by using HWR Community Land Trust practice.
•The HRA provides a line of credit to WHAHLT to acquire, rehab and sell the home to a
qualified buyer.
•
With the initial $1,300,000 line of credit that was awarded, five homes are being acquired: One house already
bought, one has a purchase agreement, one has a pending purchase agreement, one house that is using a
combination of the loans from the revolving loan program and CDBG funds. The final house is using just
CDBG funds, but the house was found as a result of the “Not for a Tear Down” postcard. Prior to the
adoption of this program it would take 5 to 7 years for HWR to acquire 5 houses and place into the land trust
model with the city’s CGBG allocation being the only city contribution.
STAFF REPORT Page 2
House 1 House 2 House 3 House 4 House 5 TOTAL
Sources of Funds
Homeowner $195,000 $185,000 $195,000 $195,000 $195,000 $ 965,000
City of Edina $290,400 $301,050 $201,650 $ 46,900 $ 840,000
CDBG $150,000 $130,000 $ 280,000
Other Public $130,000 $118,100 $ 248,100
Total Sources of Funds $485,400 $465,000 $496,050 $396,650 $490,000 $2,333,100
Acquisition Expenses:
Purchase Price $430,000 $365,700 $404,400 $245,000 $405,000 $1,850,100
Rehab and Costs $ 55,400 $ 99,300 $ 91,650 $151,650 $ 85,000 $ 483,000
Total purchase price $485,400 $465,000 $496,050 $396,650 $490,000 $2,333,100
Request
At this time staff is requesting an additional $2,000,000 in a line of credit, which includes up to $1,500,000
grant and authorization to work with legal counsel in amending the Line of Credit and Grant Agreements to
reflect this change. These new funds should aid in the preservation of about six additional houses, with the
city contribution of approximately $250,000 per home.
Description of the Community Land Trust practice:
HWR establishes affordability by using the Community Land Trust practice to acquire and retain the
ownership of real property, rehabilitate and then sell the improvement (home) to buyers earning less than
80% Area Median Income (AMI).
The HWR Community Land Trust program removes the land value from the mortgage equation to create
initial affordability. The home costs less than market rate homes because HWR buyers purchase only the house
and enter into a Ground Lease with WHAHLT-HWR to secure the long-term rights and use of the land. This
land trust practice offers long-term affordability, where each affordable home will offer homeownership to 7-
12 families throughout the life of the lease. The homes are made permanently affordable for work-force
homeowners through two contractual provisions embedded in the Ground Lease.
•The first is a pricing formula that provides the owner with a fair amount of equity (HWR is 35%),
while ensuring the sale price for subsequent low-to-moderate income households is affordable.
•The second requires the homeowner to sell to another low-to-moderate income household. In
addition, the provisions ensure the home continues to be affordable with each sale.
The Ground Lease allows the homeowner to secure long-term rights to the land. In addition, the homeowners
have full use of the land and are responsible for the property and payment of all real estate taxes on the house
and the parcel of land.
The homeowner may sell his/her home only to an income qualified buyer. The resale price is based on a
formula, which (based on market conditions) allows the seller to recover the original cost of the house plus a
modest profit. Therefore, assuming the house has retained or increased in value, the homeowner who sells
his or her home will get all of their equity plus a percentage (35%) of the home’s appreciation (the amount
that a home has increased in value since it was purchased).
As a result, Community Land Trust homes remain affordable for consecutive generations of homeowners,
because the resale restriction ensures permanent affordability.
STAFF REPORT Page 3
Housing is a multiplier, a basic need that impacts every part of life: education, health, economic success. HWR’s
mission is to continue creating affordable homeownership for low-to-moderate income work-force
households, which in turn stabilizes the family unit, adds value to the suburban community and protects the
HRA’ s investment HWR program features of cost, quality and location of its homes has been and continues
to appeal and draw interest from workforce households with low-to-moderate income.
Who is the target clientele? What populations will benefit from the activity?
The proposal supports work-force families providing essential services to the community and surrounding
suburbs who typically cannot afford to purchase an entry-level home in Edina; such as custodians, teachers,
municipal workers, retail staff, office personnel, food prep staff, customer service representatives and many
more.
In 2007, Homes Within Reach implemented its program in the City of Edina, creating and preserving affordable
homeownership, using the Community Land Trust practice. To date, HWR has assisted sixteen families
(includes two resales) become Edina homeowners. The target market for Edina is households with 50% - 80%
Area Median Income. Over the past 13 years, HWR has served households between 34% to 76% AMI in the
City of Edina. The program average Area Median Income (AMI) in Edina is 60% and 50% for resales. The
program has served 60 persons.
What community needs does this activity address:
In today’s market, Edina is confronted with the fact entry-level properties are overpriced for most work-force
households who work or live in the City. Increased home values have taken place because of a reduction in
supply and increase in demand, while wages have not increased accordingly and cannot keep pace with
increases in housing costs.
HWR program not only offers value and benefits to the families it has assisted in becoming homeowners; the
program also expands homeownership opportunities, retains community wealth, by making maximum use of
existing properties and the community’s infrastructure with younger households. It also provides a mechanism
to invest in affordable homeownership, which enhances residential stability and the preservation of housing
affordability by recycling funds from owner to owner.
Budget Request:
$2,000,000 Revolving loan
$1,500,000 Grant
Interim Sources Uses
Affordable Housing Trust Fund $2,000,000 Acquisition $1,600,000
Rehabilitation $ 300,000
Permanents Sources Project Expenses $ 100,000
Affordable Housing Trust Fund $1,500,000* TOTAL $2,000,000
Home Buyers $500,000
TOTAL $2,000,000
*The amortization of the proposed project of a net contribution of $280,000 per house for a 99-year period is
$2,828.28 per year.
STAFF REPORT Page 4
Affordable Housing Trust Fund Estimated Balance Requests
Beginning Balance* $ 4,360,000
Market Street ($750,000)
4d Pilot Program - NO TAKERS ($160,000)
4d Pilot Program -2019 ($50,000)
VEAP Emergency Assistance $0
Single Family Ownership Programs (2020) ($840,000)
Home Rehabilitation Program ($250,000)
425 Jefferson ($150,000)
Single Family Ownership Programs (2021) ($1,500,000)
Ending Balance $ 960,000
*$4.1M in additional funds expected Q3 2021
Compliance with City Approved Plans
Continuing to support the partnership between the City of Edina and the Homes Within Reach program is
supported by multiple goals within both the Housing Chapter of the Comprehensive Plan and the Housing
Strategy Task Force report.
2040 Comprehensive Plan
Goal 1: Accommodate all planned residential growth in the city based on planned infrastructure investments
and other community goals and assets.
3. Recognize that successfully reaching affordable housing goals assists the city in achieving related
community goals, including: a. Accommodating housing for families with children in Edina schools.
The Homes Within Reach program preserves entry level and modest Edina homes to makes available for current and
future families who want to raise their children in Edina.
Goal 2: Encourage the development and maintenance of a range of housing options affordable to residents at
all income levels and life stages.
1. Encourage the production of additional affordable housing units and retention of existing affordable
housing units to meet the city’s housing needs and its Metropolitan Council affordable housing need
allocation of 1,804 units.
9. Promote owner-occupied units over rental units when providing affordable housing
The Homes Within Reach program is an affordable single family ownership housing program.
Goal 3: Continue to support high quality design of residences and residential neighborhoods in a way that
furthers sustainability, character, and livability, and maintains long term investment.
4. Maintain some of Edina’s lower square footage housing stock in order to attract new residents and
retain existing residents, including providing affordable options.
The Homes Within Reach program preserves neighborhood based, modest sized housing and provides an affordable
option.
STAFF REPORT Page 5
Housing Strategy Task Force Report
A. Promote Affordable and Attainable Housing
3) Attract new residents and retain existing residents by preserving and expanding housing options for
moderate- and low-income households.
The Homes Within Reach program is an affordable housing program for both existing and new residents.
D. Encourage Preservation and Promotion of Diverse Housing Stock
1) Assist neighborhoods in retaining starter housing stock that can accommodate young families.
3) Maintain some of Edina’s single-family, lower square footage housing stock.
The Homes Within Reach program accomplishes these stated goals.
12thAugust12thAugust
Executive DirectorExecutive DirectorAugust 12, 2020
Date: Augus t 12, 2021 Agenda Item #: VI I.A.
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:G randview P ed es trian Brid ge - P ro jec t Update 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 design of the pedestrian bridge and sidewalk to be constructed in the G randview D istrict.
S taff has provided additional information in response to concerns regarding the aesthetic and functional aspects of
the bridge. Staff seeks direction and guidance regarding the preferred design elements. T his input is required so
that the contractor can proceed according to schedule.
AT TAC HME N T S :
Description
Staff Report
s taff pres entation - des ign renderings
August 12, 2021
Chair and Commissioners of Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager and Chad Milner, Director of Engineering
Grandview Pedestrian Bridge – Project Update
Information / Background:
In June 2021, the HRA awarded a construction contract to Pember Companies to build the new
pedestrian bridge and related sidewalk at 5146 Eden Avenue. At that time, the members of the
HRA expressed the desire to redesign specific portions of the project.
The designers at Kimley Horn Associates prepared additional graphic renderings to better illustrate
the preliminary design of the bridge in relation to the surrounding context. Staff explored other
examples to illustrate the types of changes that can be reasonably accommodated.
At this time, the contractor is ready to proceed. Changes can be accommodated but direction is
needed now in order to maintain the schedule and avoid excessive cost increases. The updated
renderings and examples are attached for review and discussion. Staff also has suggested functional
and aesthetic criteria to consider.
Staff Recommendation:
1) Continue with the current design of the open air bridge and authorize contractor to
proceed with construction of the foundation and bridge
- Explore options to make the walking surface of the bridge less slippery during
winter conditions
- Continue with interior and exterior lighting of the walking surface and steel panels
2) Redesign the steel panels to be more artistic in nature
- Explore expansion of artistic theme along sidewalk and green space
3) Employ a simple process to obtain public input to help select the final design
STAFF REPORT Page 2
Direction Requested:
Although no formal action is required, direction is needed so that the contractor can proceed.
•Should the bridge be “open air” or redesigned to include a roof?
•Is there support for the recommended aesthetic changes?
•Is there support for the recommended process to select the aesthetic theme?
•Are any additional changes required?
The CITY of
EDINA
Grandview Pedestrian Bridge
Project Update
Report to:
Edina Housing & Redevelopment Authority
August 12, 2021
www.EdinaMN.gov
The CITY of
EDINAProject Update
2
4)Substantial changes will result in
cost increases:
-adding a roof will require full
redesign of foundation and bridge
and a moderate price increase
-new design for panels can be
accommodated with a relatively
minor price increase
1)Construction contract awarded to
Pember Companies in June 2021
2)Contractor ready to proceed in
September 2021 with completion in
summer/fall 2022
3)At this time, changes can be
accommodated with minor impact to
schedule
1
5
4
3
2
6
1
Birdseye view of bridge and sidewalk
Temporary 2:1 slope to
prevent erosion until
design of public green
space is finalized
2
Westbound path as viewed from Hilltop
3a
Bridge with basic art panels
3b
Bridge with additional art panels
4
Eastbound view from parking lot behind Walgreens
5a
Basic open air bridge with concrete walking surface
5b
Bridge with partial roof covering
5c
Bridge with full roof and open sides
The CITY of
EDINAAlternate Design Examples
Several alternative design concepts were explored to
amplify the artistic qualities of the pedestrian bridge.
12
AE DCB
The CITY of
EDINAAlternate Design Examples
13
E
H
G
F
The CITY of
EDINAAlternate Design Examples
14
I
K
J
The CITY of
EDINAAlternate Design -Suggested Criteria
15
AESTHETICS
1)Public art not merely functional
2)Identified with “Edina”, “Grandview”
or related imagery
3)Local flavor
4)Local attraction
5)Unique destination
6)Carry into public green space
7)Selection process with public input
FUNCTIONALITY
1)Comply with Railroad safety criteria
2)Low maintenance
3)Natural ventilation
4)Open to avoid “tunnel” and promote
safety
5)Custom designed
6)Reasonably priced
7)Illuminated at night
8)Cast unique shadow
The CITY of
EDINAAlternate Design -Suggested Process
16
Selecting Artist & Design
1)Focus groups to select potential
artist and potential themes
2)Poll of local residents and
businesses to select final design
3)2 to 4 weeks
Shaping a Vision
1)Engage consultant to lead process
2)Focus groups to provide guidance
1)-Arts & Culture Commission
2)-Local businesses
3)-Local residents
4)-Other stakeholders
3)4 to 8 weeks
The CITY of
EDINAStaff Recommendation
17
1)Continue with the current design of the open air bridge and authorize
contractor to proceed with construction of the foundation and bridge
1)-Explore options to make the walking surface of the bridge less slippery during
winter conditions
2)-Continue with interior and exterior lighting of the walking surface and steel panels
2)Redesign the steel panels to be more artistic in nature
1)-Explore expansion of artistic theme along sidewalk and green space
3)Employ a simple process to obtain public input to help select the final design
The CITY of
EDINADiscussion Items
18
1)Should the bridge be “open air” or redesigned to include a roof?
2)Is there support for the recommended aesthetic changes?
3)Is there support for the recommended process to select the aesthetic theme?
4)Are any additional changes required?
Staff seeks input and guidance from the HRA Board before it proceeds
with any additional work
Date: Augus t 12, 2021 Agenda Item #: VI I.B.
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:7001 F ranc e Ave - P rojec t Up date 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 :
F or discussion only; no action required at this time.
I N TR O D U C TI O N :
T his item pertains to the potential use of tax increment financing (T I F ) to promote redevelopment of the
underutilized site at 7001 F rance Avenue.
T he developer has alerted staff that the rapid escalation in construction material prices has had a severe impact on
the financial viability of the redevelopment plans. T hey intend to pursue changes in the site plan to scale back
some elements of the proposed project. T he 6-acre site will still be split into four separate parcels with four
separate buildings. T he S outhdale D esign G uidelines will still be applied.
B ased on redevelopment costs and the high level of design requirements, there is still anticipated to be a financial
gap that will need to be resolved with public financing.
S taff seeks input regarding the potential use of public financing on this project. S uch input will be vital to
determine whether the modified site plan is capable of securing debt and equity needed to build the project.
AT TAC HME N T S :
Description
Staff Report
Staff pres entation
Housing & Redevelopment Authority
August 12, 2021
Chair Hovland and Commissioners of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
7001 France – Project Update regarding Tax Increment Financing
Information / Background:
On May 27, 2021, staff provided a preliminary recommendation regarding the use of Tax Increment
Financing (TIF) on the property at 7001-7025 France Avenue.
Since the developer initiated financing discussions with staff, commodity prices have escalated
tremendously. In June the developer alerted staff that the approved site plan, despite the potential
use of TIF and grants does not appear to be financially viable.
The developer is preparing updated site plans for reconsideration by the Planning Commission and
City Council. In order to achieve a bold redevelopment strategy that is capable of securing
adequate debt and equity investors, the developer will need to secure obtain new zoning
entitlements for the site as well as a commitment to provide public financing to address the
anticipated gap in the pro forma.
Rezoning without TIF is not anticipated to result in a buildable site plan. Both rezoning and TIF are
anticipated to be essential to achieve the bold vision originally laid out by the developer.
Project Summary:
The developer intends to submit updated site plans that deliver a comparable product but at a
lower cost.
•Site will continue to be subdivided into 4 separate parcels with 4 separate buildings
•Site plan to address the vision of the Southdale Design Experience Guidelines
•The 9-story mixed-income (affordable) apartments on Site C will be replaced with a 6-7
level pre-cast concrete (sloped floor) open parking structure with high level of exterior
design; the majority of this structure will be available for public parking
STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 2
• The 5-levels of parking in the podium of the office building will be reduced or eliminated to
reduce the height and cost of the Site B office.
• The parking levels in the market-rate apartment on Site A may be modified to balance
parking supply but will not change the 24-story height of the building.
• The developer will comply with the City’s affordable housing policy by preserving NOAH
housing off-site or by making a financial contribution to ‘buy in’ to the affordable housing
pool instead of constructing affordable units on site.
• No changes to the branch bank on Site D.
Staff is generally supportive of the use of TIF to allow this site to be fully redeveloped following a
bold outlook that is consistent with the Southdale Design Experience Guidelines.
Before the developer invests in additional design drawings, it would be helpful to know whether
these types of changes affect the HRA’s potential financial support for this project.
Discussion Questions:
Staff seeks guidance from the HRA Board regarding the potential use of public financing for this
project. Input is required before staff proceeds with any additional work.
1) Is the use of TIF still acceptable if the developer chooses to abide by the City’s
housing policy by means of a financial contribution to the affordable housing
trust fund instead of constructing units on site?
2) Is this a desirable location for stand-alone public parking facility that is privately
owned?
3) Is the HRA Board satisfied with the overall degree of public benefit potentially
delivered by this project?
4) Is HRA Board comfortable pledging up to 15 years of incremental taxes ($18 to
$22 million) to support this type of redevelopment concept?
STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 3
UPDATED REDEVELOPMENT AND PUBLIC FINANCING STRATEGY
1) Establish one new TIF District
a. subject to HRA and City Council review after public hearings
2) Prepare Term Sheet and TIF Agreement
a. four market rate elements (Sites A, B, C & D)
b. mixed Income housing omitted
3) Developer to bear all financial risk, including pre-development costs, equity investment and
debt
4) Project delivered must be the same scale as approved in revised zoning documents as
measured by square footage, number of units, and caliber of design and construction
a. Minor architectural or engineering revisions are generally acceptable provided
approval granted by City staff, Planning Commission and/or City Council as
appropriate
5) Issue TIF Note(s) upon final completion of Sites A, B, C & D. Notes may be postponed or
withheld if site is not fully completed.
6) Notes to be pay-as-you-go and interest bearing. A single or multiple TIF Notes may be
issued.
7) No direct TIF support for the single story bank building (Site D)
8) No direct TIF support for the private elements of the luxury residential high rise (Site A) or
the private elements of commercial high rise (Site B).
9) No direct TIF support for private parking
10) Minnesota Statutes identify a wide variety of construction expenses that are potentially
eligible for TIF. Staff recommends that only a subset of these potentially eligible costs be
recognized as reimbursable.
11) TIF Assistance should be considered in an amount not to exceed the estimated cost to
deliver exceptional public benefits on the site. The recognized public benefits include:
clearing, subdividing and designing the site to comply with the ideals of the Southdale
Experience Guidelines, and a portion of the costs to construct a stand-alone public parking
facility. Those approximate costs are summarized below.
Description of costs that yield public benefit Approx
Cost
1 Demolition of existing obsolete structures TBD
2 Remediation of environmental contamination TBD
STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 4
Description of costs that yield public benefit Approx
Cost
3
Site improvements to achieve the desired 4 parcel arrangement,
including site preparation, utilities, France & 70th street
improvements, internal roads, surface parking, driveways,
sidewalks, landscaping, etc
TBD
4 Public plaza TBD
5 Public parking structure – open air, sloped floor, pre-cast
concrete TBD
6 Professional costs to prepare TIF study, plan and agreements TBD
Total = approximately $18 to $22 million
12) The total principle amount of TIF Notes is likely to be in the range of $18 to $22 million.
The final sizing of the TIF Note(s) will be fully articulated in the TIF Redevelopment
Agreement. An updated pro forma will be required to reflect the modified scope.
13) The TIF Note(s) will also be subject to the following limitations:
a. TIF Assistance shall not exceed 10% of actual total Site A, B & C development costs.
Costs for Site D bank are not eligible.
b. TIF Note(s) will be sized at time of Certificate of Completion upon verification the
anticipated stabilized project returns do not exceed 6.00% return on cost for Site A
(residential building) and market-based (7.50 to 8.50% return on cost for Site B
(commercial building).
14) TIF payments will be subject to lookback/clawback provisions at the earlier of (a) sale of any
element or (b) 10-12 years into the term of the TIF District to reduce TIF payments should
the project generate above-market returns (to be defined in Term Sheet)
15) Throughout the process of sizing the TIF Notes and making TIF payments, the developer
must continue to confirm that the “But For” finding is satisfied and that a project of this
scale, scope and caliber would not be possible without TIF Assistance.
16) Fees charged by developers and affiliated companies must be typical for the service
delivered
17) Developer to identify equity partners and debt providers prior to preparation of final TIF
Redevelopment Agreement.
18) Developer to provide permanent public easements at no expense to the City on the public
parking structure, public plaza and other perimeter and interior area used to traverse the
site.
a. Developer to maintain these easement areas in good condition.
STAFF REPORT - 7001 France – Preliminary Recommendation for use of TIF Page 5
b. Developer can apply reasonable rules and regulations on the public parking and
public plaza including restrictions on the hours of operation, prohibit use for
purposes detrimental to the operations of the adjacent private buildings (ie loud
noise, unruly behavior) and limit the time a vehicle can be parked in public stalls
without paying. Rules and regulations subject to acceptance by City Manager.
19)Developer to pursue applicable grants and shall be responsible to abide by the terms of
those grant programs.
a. Grant proceeds to be reflected in the final Sources and Uses calculation
b. Grants will be considered in final determination of project returns
c. Developer to bear the cost of preparing the grant applications, including an
administrative fee to the City
20)Developer to bear financial responsibility for all third-party costs incurred by City/HRA
related to this TIF request
The CITY ofEDINA
7001-7025 France Avenue
Request for Tax Increment Financing
Project Update
Report to:
Edina Housing & Redevelopment Authority
August 12, 2021
www.EdinaMN.gov
The CITY ofEDINA
2
Overview
•Escalating costs impact
project
•Partial redesign
required
•TIF still needed to
make bold vision viable
Confirmed Elements
•Fully embrace Southdale
Design Experience
Guidelines
•subdivide 5-acre site
•4 separate construction
pads
•Streetscape elements
throughout
•Bold vision
•Each building financed and
constructed separatelyD
bank
C
Mixed -income
residential
high rise
B
Office / Retail
High rise
A
Residential high rise
3
Anticipated Changes
•Site A –high rise apartments
•Minor changes to parking
arrangement
•No changes in height
•Site B -commercial
•Reduce height
•Remove parking levels
•Site C –formerly apartments
•Eliminate mixed-income
apartments
•Replace with stand-alone
parking structure
•Site D –bank
•No changes
D
bank
C
Mixed -income
residential
high rise
B
Office / Retail
High rise
A
Residential high rise
4
The CITY ofEDINAPreliminary Financing Strategy
-Sources and Uses
5
•Reduce development and construction costs without
sacrificing quality of construction or public realm elements
•Traditional levels of debt and equity
•Supplemented by Pay-as-you -Go TIF and grants
The CITY ofEDINAPreliminary Financing Strategy
-Expenses NOT eligible for TIF
6
Description of In-eligible Work
A Private (executive) parking for office building
B Private (residential) parking for residential high rise
C Construction costs of office building
D Construction costs of luxury high rise
E Design & other soft costs of private buildings
F Any costs of the single-story bank
no
T I F
used for
these items
The CITY ofEDINAPreliminary Financing Strategy
-TIF eligible expenses
7
Description of Work Approx Cost
1 Demolition of obsolete buildings TBD
2 Remediation of contamination TBD
3 Site improvements to achieve 4 pad layout TBD
4 Public plaza TBD
5 Public parking –stand-alone structure TBD
6 Professional costs related to TIF agreement TBD
Estimated Total = $18.0 to 22.0 M
The CITY ofEDINASummary
8
1)Staff generally supportive of using TIF to achieve compliance with Southdale
Design Guidelines
1)-Subject to review of updated design and updated financial pro forma
2)Changes to the site plan AND use of public financing BOTH required to
achieve bold vision.
Staff seeks input and guidance from the HRA Board before it proceeds
with any additional work
The CITY ofEDINADiscussion Questions
1)Is the use of TIF still acceptable if the developer does not include
affordable units on the site?Compliance will be achieved by an
alternative means.
2)Is this a desirable location for stand-alone public parking facility that is
privately owned?
3)Is the HRA Board satisfied with the overall degree of public benefit
delivered by this project?
4)Is HRA Board comfortable pledging up to 15 years of incremental taxes
($18 to $22 million) to support this type of redevelopment concept?
9
Date: Augus t 12, 2021 Agenda Item #: VI I.C .
To:C hair & C ommissioners of the Ed ina HR A Item Type:
R ep o rt / R ecommend atio n
F rom:S tep hanie Hawkins o n, Affo rd able Ho us ing
Develo p ment Manager Item Activity:
Subject:Hous ing S trategy Task F orc e Implementatio n P lan 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 :
Approve I mplementation P lan and direct staff to incorporate into future work plans as recommended.
I N TR O D U C TI O N :
At the December 10, 2020 H ousing and R edevelopment Authority meeting H ousing S trategy Task F orce's report
on H ousing G oals and S trategies was was adopted and S taff was directed to return with an implementation plan.
T he Implementation P lan breaks the G oals and S trategies into four categories:
1. S trategy items in process;
2. S trategies recommended to include in 2022 Work P lans;
3. S trategies recommended to include in 2023 Work P lans; and
4. S trategies where the C ity has limited authority to implement.
T he Implementation P lan and H ousing Task F orce report are attached.
AT TAC HME N T S :
Description
Hous ing Strategy Implementation Report
Hous ing Tas k Force Report
Staff Report on Hous ing Strategy Tas k Force Report
Pres entation
Housing Strategy
Implementation Report
City of Edina
4801 West 50th Street
Edina, MN 55424
Advancing Housing Priorities
for Edina
2
Introduction
There are many ways to define a city. At its essence, a city is a group of people who
live in close proximity to one another and practice a level of interdependence that
contributes to their overall quality of life. As humans have evolved, cities have grown
more sophisticated, and shelter needs more complicated. Because of its centrality to
human life, our need for safe reliable shelter has become a matter of great concern to
our leaders. The purpose of this report is to identify and address the shelter (i.e. –
housing) needs of a modern suburban community in 21st century America in order
for the leaders of this community to make sure that the residents of Edina have a
broad supply of housing options available to them.
This report is a strategy documents that reflects the will of the elected leaders in
Edina 2020. It was produced by a group of City staff, community volunteers and
consulting partners who collectively dedicated thousands of hours of time to the
overall goal of insuring the housing needs of Edina residents, present and future, are
considered first and foremost as the key to Edina’s overall quality of life.
Scott H. Neal
3
Table of Contents
Housing Strategy Task Force ....................................................................................................................... 4
Staff Evaluation Process ............................................................................................................................. 5
Impact Matrix ...........................................................................................................................................................6
Housing Priorities ....................................................................................................................................................7
Goals and Strategies ................................................................................................................................................8
Notes for Reading ...................................................................................................................................... 9
Recommendation for Moving Strategies Forward ...................................................................................... 10
I. Strategy Items in Process ........................................................................................................ 10
II. Recommendation to Include on 2022 Workplan ............................................................ 15
III. Recommendation to Reassess for 2023 Workplan ......................................................... 20
IV. Strategies where City has Limited Authority to Implement ..................................... 24
Appendix: Housing Strategy Report Recommendations
4
Housing Strategy Task Force
Task Force Members
Bernadette Hornig, co-chair
Daniel Hunt, co-chair
Janet Kitui
Joe Burke
Norm Siekman
Steve Brown (joined January 2020)
Thomas Koon
Feroza Mehta (served June - November 2019)
City Staff
Stephanie Hawkinson, Affordable Housing Development Manager
MJ Lamon, Community Engagement Coordinator
Scott Neal, City Manager
Cary Teague, Community Development Director
Consultant Team
Merritt Clapp-Smith, Moxie Consulting LLC
Janne Flisrand, Flisrand Consulting
Antonio Rosell, Community Design Group
5
Staff Evaluation Process
Each goal and strategy was evaluated by designated City staff, who also provided input on the
Imapct Effort Matrix Score*. The Affordable Housing Development Manager led the evaluation
process.
*Impact Effort Matrix Score
Lead Staff had colleagues provide feedback on the forty-two strategies. Staff participation included
feedback from the following people:
Kris Aaker, Assistant City Planner
Emily Bodeker, Assistant City Planner
Grace Hancock, Sustainability Coordinator
Risi Karim, City Management Fellow
MJ Lamon, Community Engagement Coordinator
Bill Neuendorf, Economic Development Manager
Luther Overholt, City Forester
Cary Teague, Community Development Director
Don Uram, Finance Director
Jessica Vanderwerff Wilson, Water Resources Coordinator
6
Impact Matrix
The Impact Effort Matrix is a 2 x 2 grid that helps assess solutions for their relative impact given
the effort required. It provides a quick way to filter out solutions that might not be worth
the effort. The best solutions are in the upper left quadrant, easy to implement but with
substantial impact.
1 – High Impact/Low Effort
2 – High Impact/High Effort
3 – Low Impact/Low Effort
4 – Low Impact/High Effort
1 2
7
Housing Priorities
The top five Task Force recommended housing priorities are:
1. Add 992* affordable rental housing units
a. 80% affordable rental for general occupancy
b. 20% affordable rental for active seniors.
2. Add 900 market rate rental housing units for general
occupancy
3. Add 360 senior ‘independent living,’ congregate housing
units
4. Add 250 owned multi-family housing units
5. Add 200 senior ‘assisted living’ housing units
*As adopted by the City Council per Metropolitan Council goals. Remaining values derived from
Maxfield Housing Study.
8
Goals and Strategies
Goal 1: Promote Lifecycle Housing
Strategies:
A. Promote Affordable and Attainable Housing
B. Promote Missing Middle Housing Production
C. Promote Special Needs Housing
D. Encourage Preservation and Promotion of Diverse Housing Stock
Goal 2: Amend Land use Regulations to Enable a More Diverse Housing Stock
Strategies:
A. Adjust Zoning Standards for Housing
B. Consider Zoning District Amendments to Expand Housing Options.
Goal 3: Reduce Building Costs
Strategies:
A. Streamline the Approval Process for Housing Developments Requiring
Variance or Subsidy.
B. Reduce the Cost of Building, Renovating and Financing Quality Housing.
Goal 4: Encourage Sustainable Design and Technology in all New and
Substantially Rehabilitation Housing.
9
Notes in Reading Steps for Moving Forward
The following pages are a reorganization of the Task Force’s recommendations from a linear
reading of goals and strategies to placing those goals and strategies into implementation categories.
Therefore, in the first section under “Strategy Items in Process” there is Goal 1, Strategy A then
Goal 1, Strategy D. Strategies B and C are in different sections.
The full list of Goals and Strategies is provided in the Appendix.
10
Recommendation for Moving Priorities Forward
I. Strategy Items in Process:
Staff has already begun moving these strategies items forward. Some of these with a Matrix Score of
1 could be completed in 2021, some by their nature are on-going, and others have a longer time
line and require either HRA or City Council approval.
GOAL 1: Promote Life Cycle Housing
Strategy A: Promote Affordable and Attainable Housing
1 Strategy 1A.3: Attract new residents and retain existing residents by preserving and expanding housing
options for moderate- and low-income households.
Staff Response Lead Partner
• HRA allocated funds to Metro HRA and West Hennepin
Community Land Trust for affordable single family
housing.
• Improve communication to owners of moderate priced
homes that HRA or Land Trust may want to acquire.
• Lack of interest to place a moratorium on teardowns.
• City needs to affirmatively further housing diversity.
• There is a need to larger family units of affordable
housing.
• City can create incentives but not mandates.
• Per unit, affordable single family housing is more
expensive than multifamily housing.
• Single Family ownership helps with wealth creation.
• City/HRA already providing gap financing for affordable
rental, including for land acquisition.
• On-going effort
Affordable
Housing
Development
Manager
Edina Housing
Foundation
Matrix Score:1
Strategy D: Encourage Preservation and Promotion of Diverse Housing Stock
2 Strategy 1D.2: Encourage the preservation, maintenance, and rehabilitation of existing subsidized and
naturally occurring affordable rental and ownership housing (NOAH)
Staff Response Lead Partner
• HRA has approved two iterations of the 4d program
which is primary tool for NOAH preservation. Neither
has been successful.
• City approved gap finance for 7008 Sandell to preserve as
a NOAH property.
Affordable
Housing
Development
Manager
Sustainability
Coordinator
11
• City has agreement with Center Energy & Environment’s
Home Energy Squad to assess homes for energy efficiency
measures.
• We need a better mechanism for selling the 4d and energy
efficient program as message may not be getting to
owners.
• On-going effort.
Matrix Score: 2
3 Strategy 2D.4: Support program(s) for assisting income eligible property owners with rehabilitating their
homes to extend their useful life.
Staff Response Lead Partner
• City has agreement with Center for Energy and the
Environment (CEE) Home Energy Squad to assess homes
for energy efficiency measures.
• Exploring expansion of relationship with CEE to support
emerging home rehab program.
• City allocates a portion of CDBG allocation to Hennepin
County to administer a rehabilitation program.
• In March 2021 HRA approved Home Rehab pilot
program.
• Will review program outcomes when the Pilot Program
has concluded.
Affordable
Housing
Development
Manager
Edina Housing
Foundation
Matrix Score: 1
GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock
Strategy A: Adjust Zoning Standards for Housing
4 Strategy 2A.1: Provide zoning flexibility in the specific areas identified for development in the 2040
Comprehensive Plan to streamline the public approval process for minor variances.
Staff Response Lead Partner
• Planning employs the PUD process that provides zoning
flexibility. Process works well, although would be helpful
to have just one public hearing.
• Propose having only one public hearing – at Planning
Commission. If developers do not agree with outcome,
may appeal to City Council. Eliminate City Council
Public hearing.
• Planning Commission is the reviewing authority for
minor variances. Process works well now.
Planning
Department
Planning
Commission
12
• On-going.
Matrix Score: 2
5 Strategy 2A.3: Allow for creative solutions and some flexibility in the provision of off-street parking
standards for housing. This might include options like shared parking, reduced minimums near transit
and activity nodes, or exceptions to structured parking requirements for affordable housing.
Staff Response Lead Partner
• The Planning Commission is currently considering an
ordinance amendment to the city's parking standards.
• This will be concluded in 2021.
Planning
Department
Planning
Commission
Matrix Score: 2
Goal 3: Reduce Building Costs
Strategy A: Streamline the Approval Process for Housing Development Requiring
a Variance or Subsidy
6 Strategy 3A.1: Fully empower the City’s Community Development Department to identify properties
for development or redevelopment, analyze projects for both fit with the 2040 Comprehensive Plan
Design Guidelines and economic feasibility in prevailing market conditions, balancing these two as
needed. Communicate development objectives to developers and encourage the preparation of
proposals for development.
Staff Response Lead Partner
• Staff cannot dictate development on property it does not
own.
• Encourage flexibility in design guidelines to achieve
affordability.
• Staff does identify potential sites for redevelopment and
work with property owners interested in redevelopment
by sharing small area plans, studies, comprehensive plan
etc.
• On-going.
Planning
Department
Planning
Commission
Matrix Score: 1
7 Strategy 3A.2: Implement active outreach and recruit developers with a successful track record in
providing the housing desired.
Staff Response Lead Partner
• When the City has control of property, they issue an
Request for Proposals/Request for Qualifications to
attract developers: e.g. Amundson Flats and Cornelia
View Apartments
• Assists in achieving City goals.
Affordable
Housing
Development
Manager
Edina Housing
Foundation
13
• The availability of land and financial resources is a
limiting factor.
• On-going.
Matrix Score: 2
8 Strategy 3A.3: Empower the City’s Community Development Departments to guide developers
through the project approval process.
Staff Response Lead Partner
• Practice already in place.
Community
Development
Director
Matrix Score: 1
9 Strategy 3A.4: Provide better guidelines for development requirements, based on location and
economic objectives.
Staff Response Lead Partner
• Practice already in place.
• This has been done with development of the 2040
Comprehensive Plan which includes small area plans for
the commercial nodes, and design experience guidelines
for the Southdale area. Some of those guidelines have
been codified into the City's Zoning Ordinance.
Planning
Department
Matrix Score: 1
Strategy B: Reduce the Cost of Building, Renovating and Financing Quality
Housing
10 Strategy 3B.1: Develop a parking policy that reflects the latest thinking for current and future parking
needs, parking construction costs, sustainability and evolving economic and marketability needs for
successful projects.
Staff Response Lead Partner
• The Planning Commission is currently working on a
Zoning Ordinance Amendment regarding parking.
• Current parking rules often result in a variance request,
allowing planning to require more sustainability
measures (among others) than typical. Some people
prefer incentive here to keep parking rules as is.
• Planning Commission is seeking City Council approval
in quarter 2 of 2021.
Planning
Department
Planning
Commission
Matrix Score: 1
11 Strategy 3B.4: Utilize land trusts and land write-downs to secure land for future development projects.
Staff Response Lead Partner
• A partnership with West Hennepin Affordable Housing
Land Trust already exists.
Affordable
Housing
West
Hennepin
14
• Edina Housing Foundation entered into a 99-year
ground lease to secure 99-year affordability on a
multifamily development at 4040 W. 70th St.
• Limiting factor is the availability of land.
• On-going.
Development
Manager
Affordable
housing Land
Trust
Matrix Score: 1
12 Strategy 3B.5: Empower the City’s Affordable Housing Development Manager to be responsible for
establishing/evaluating the parking, design, and amenity requirements for affordable housing
developments to ensure economic viability of these projects.
Staff Response Lead Partner
• The Affordable Housing Manager is already a part of the
staff review process.
• Staff needs to consider how the proposed development
fits within the neighborhood.
• This strategy limits some oversight control of the
Planning Commission and City Council pertaining to
the Sketch Plan process if implemented to the extreme
Affordable
Housing
Development
Manager
Planning
Commission
Matrix Score: 1
13 Strategy 3B.7: Authorize the City, through a public hearing process, to have authority to make property
purchases that are consistent with a city development strategy, within a financial limit, to be able to
secure control of potential properties for affordable housing development, in an expeditious manner.
Staff Response Lead Partner
• The HRA began acquired land to fulfil the development
mission with the acquisition of 4040 W. 76th Street.
• The HRA also acquired 7075 Amundson to help
facilitate those two affordable housing developments.
• On-going.
Affordable
Housing
Development
Manager
Edina Housing
Foundation
Matrix Score: 1
15
II. Recommendation to Include on 2022 Workplan
Strategies included in this section include those that are not currently underway, but staff
recommends be prioritized for 2022 workplans as they support the City’s pillars of Equity and
Inclusion and sustainability.
GOAL 1: Promote Life Cycle Housing
Strategy A: Promote Affordable and Attainable Housing
14 Strategy 1A.1: Prepare a housing implementation plan using a mix of tools to achieve the City’s
housing goals, including the Comprehensive Plan goal range of 992 to 1,804 affordable units, in the
ten-year horizon, with time-bound goals and milestones, to be reviewed on an annual basis.
Staff Response Lead Partner
• Staff can refer to this strategy when developing annual
work plans.
• Staff may track number of affordable units developed
and include in staff report to HRA.
• Affordable housing requires gap financing and
participating developers. This goal could be a challenge
due to the availability of funding using City sources and
government partners.
Affordable
Housing
Development
Manager
Edina Housing
Foundation
Matrix Score: 2
15 Strategy 1A.2: Facilitate the development of “new” housing options such accessory dwelling units to
accommodate the diverse needs of people of different ages, household sizes, lifestyle and incomes.
Staff Response Lead Partner
• Requires a Comp plan amendment to allow more density
in R1 zoning districts.
• The Planning Commission reviewed before and opted to
not proceed.
• Could be included in Planning Commission 2022 Work
Plan.
• This would require buy-in with residents in established
neighborhoods. This was discussed during Comp Plan
update with no support at the time.
• Although allowing ADUs could fill a niche of smaller
more affordable housing in Edina, in reality building
them is expensive and cities that allow them are not
seeing them developed in high numbers.
• If ADUs are consider, should also include duplexes to
four-plexes. There is a racial component of who is in
Planning
Department
Planning
Commission
16
favor of ADUs vs. other forms of increased housing
density.
Matrix Score: 4
Strategy B: Promote Missing Middle Housing Production
16 Strategy 1B.1: Support opportunities to accommodate Missing Middle housing within the city, defined
as range of multi-unit or clustered housing types compatible in scale with single-family homes
Staff Response Lead Partner
• May require a Comp plan amendment and zoning
change.
• Higher zoning creates higher land value. In districts that
already have Multifamily zoning - this could reduce land
value. In areas with R1 zoning - this could increase value.
• Missing Middle can have same massing as single-family
houses, with each unit being more affordable.
Planning
Department
Planning
Commission
Matrix Score: 2
Strategy C: Encourage Preservation and Promotion of Divers Housing Stock
17 Strategy 1C.1 Support a range of housing options for people with special needs (Developmentally,
Physically, or Mentally)
1) Families with a disabled member
2) Affordable housing for working households with a disabled member
Assisted living for individuals with disabilities.
Staff Response Lead Partner
• Requires a developer to provide this type of housing.
• If the City owns the land, we can make this a
requirement in RFP.
• Land is scarce and expensive.
Affordable
Housing
Development
Manager
Edina Housing
Foundation
Matrix Score: 2
GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock
Strategy B: Consider Zoning District Amendments to Expand Housing Options
18 Strategy 2B.3: Support the development and preservation of affordable housing throughout Edina where
there is access to transit.
Staff Response Lead Partner
• On-going now when possible.
• Preserves/increases housing options.
• Scarcity of available Land.
Affordable
Housing
Development
Manager
Planning
Commission
Matrix Score: 2
17
GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock
Strategy B: Consider Zoning District Amendments to Expand Housing Options
19 Strategy 2B.1: Consider zoning amendments in limited areas (such as transitional areas and activity
nodes) to allow lot splits for infill, single-family ownership housing, detached or attached (zero lot
line), on lots after splitting that are 50’ or wider (or 3,500 sf or larger).
Staff Response Lead Partner
• Allows for more inclusionary housing - more affordable.
• The City has considered many requests like what is
suggested here. Some get approved and some get denied.
The process seems to work well as the city has flexibility
on when to approve or deny.
• Review design elements that make single family housing
more expensive such as basements, minimum lot size,
minimum lot width, minimum house width, etc.
• This would have to be a planning commission work plan
item.
Planning
Department
Planning
Commission
Matrix Score: 2
20 Strategy 2B.2: Consider amending current R1 zoning to allow attached or detached Accessory
Dwelling Units (ADU) such as self-contained "mother-in-law units". Develop Small Area Plans for
extending R2 zoning along Vernon Ave from 169 to Interlachen, France Ave north of Hwy 62, and
Valley View from 66th to Hwy 100. Evaluate additional areas for R2 zoning.
Staff Response Lead Partner
• If allow for ADUs also allow for duplexes. ADUs are
perceived as "white" duplexes, so if they become allowed
should allow for attached two-household residences. SF
zoning is considered exclusionary.
• May not require rezoning as ADUs are not main
dwelling unit but may can be considered a structure like
gazebo or garage.
• The concept has been considered and rejected in the past
(2008 Comp Plan). Issue was discussed briefly during the
current Comp Plan consideration, but not suggested.
Some were concerned with the potential of doubling the
density in the R1 District.
• Although allowing ADUs could fill a niche of smaller
more affordable housing in Edina, in reality building
them is expensive and cities that allow them are not
seeing them developed in high numbers.
Planning
Department
Planning
Commission
18
• This could be another consideration for the Planning
Commission on their work plan item for 2022.
• Many of these areas are currently zoned R2.
• City staff has not been approached by developers to
redevelop these areas for duplexes where single family
homes now exist.
Matrix Score: 2
GOAL 3: Reduce Building Cost
Strategy B: Reduce the Cost of Building, Renovating and Financing Quality
Housing
21 Strategy 3B.8: Fully utilize the other options the city has to lower the cost of development and or
financing (i.e. rebate on fees, tax exempt bond financing, upgrading to an Economic Development
Agency, selling land below market value, reduced property taxes, etc.)
Staff Response Lead Partner
• Transfers cost to other sectors.
• Need to review legal parameters.
• Assists in reducing the development costs of affordable
housing.
• Provides incentives to developers.
Affordable
Housing
Development
Manager
Finance
Director
Matrix Score: 2
GOAL 4: Encourage Sustainable Design and Technology in all New and
Substantial Rehabilitation Housing
22 Strategy 4.1: Encourage alternative energy sources including solar, wind, waste material, and
geothermal.
Staff Response Lead Partner
• State Building Code does not allow cities to require more
stringent building measures than the state. This limits
ability to require sustainable design of private buildings.
• Wind energy is not practical to install in urban
environments, but residents can subscribe to wind
energy through Xcel Energy.
• City is developing a Green Buildings policy which would
apply to all projects receiving TIF or other public funds.
For projects not receiving public funds, there is no
mechanism to require renewable energy, though there is
opportunity to better communicate utility incentives.
Sustainability
Coordination
Energy and
Environment
Commission
19
• Staff time for research/conversations with Xcel energy
about promoting solar garden subscriptions.
• If City installs more solar this could be opened to public
subscribers like the array on Public Works' rooftop.
Could also include affordability carve-out.
• If City wishes to promote conversion from natural gas to
electricity for heating, would likely include financial
resources needed.
• Residential energy use accounts for ~40% of all building
energy use in Edina (outside commercial/industrial).
• Existing tools: Home Energy Squad to assess current
conditions and list of actions for rehabs to be more
efficient, Xcel 2016 Electricity Action Plan & residential
energy subscriptions, Centerpoint community
affordability programs, emerging City Green Buildings
policy & existing Energy Benchmarking ordinance, CAS
Fund for city projects.
• More tools/actions will come with '21 Climate Action
Plan
Matrix Score: 2
20
III. Recommendation to Reassess for 2023 Workplan
The following strategies require a longer lead time, may be more politically charged, and/or the
outcomes may not match the effort to implement.
GOAL 1: Promote Life Cycle Housing
Strategy D: Encourage Preservation and Promotion of Diverse Housing Stock
23 Strategy 1D.5: Increase awareness about the range of housing variety that exists in Edina.
Staff Response Lead Partner
• Housing in Edina is more varied than common
perceptions.
• The City has had affordability and diversity for a long
time.
• Address misconceptions regarding housing in Edina.
Communications
Department
Matrix Score: 3
GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock
Strategy A: Adjust Zoning Standards for Housing
24 Strategy 2A.2: Continue to allow teardowns/rebuilds but consider design guidelines and regulations
that prevent privacy invasion via window placement and infringement on both active and passive solar
energy capture.
Staff Response Lead Partner
• Zoning ordinance amendment would be required.
• Would have to be added to the planning commission
work plan. They have not identified these as issues.
• It is debatable on whether the City should micromanage
window placement.
• The City has addressed the tear down rebuilt issue
several times over the past 15 years. Modifications have
been made to address resident concerns. Those include
reducing height, adding architecture controls
(prohibiting blank walls), increasing setbacks, better
regulations on grading. The planning commission has
not identified these as issues.
Planning
Department
Planning
Commission
Matrix Score: 4
21
GOAL 3: Reduce Building Cost
Strategy A: Streamline the Approval Process for Housing Development Requiring
a Variance or Subsidy
25 Strategy 3A.5: Simplify the current project approval process. Limit discussion to the variance or 2040
Comprehensive Plan amendment issues being raised.
Staff Response Lead Partner
• Consider eliminating one public hearing. State law
requires one official public hearing.
• The length of the entitlement process has been shown to
determine whether a development moves forward.
• Reducing time, and therefore cost.
• City Council would not hold a public hearing but simply
approve or deny Planning Commission’s determination.
Community
Development
Director
Planning
Commission
Matrix Score: 2
26 Strategy 3A.6: Conduct semi-annual project review meetings between Staff, City Council and Planning
Commission to discuss lessons learned, gain alignment and determine policy implications of projects
completed in the past six months.
Staff Response Lead Partner
• This could be accomplished as part of the annual work
session with the planning commission and city council.
• Learning process to improve City functions.
Community
Development
Director
Matrix Score: 3
27 Strategy 3A.7: Complete Post-mortem reviews of the current development review process, paying
particular attention to assessing the level of quality of resulting developments. Identify what
developments have been delayed or have been negatively impacted by incurring additional costs in the
development process due to multiple levels of approvals or ad hoc design and amenity requests
Staff Response Lead Partner
• This could be accomplished as part of the annual work
session with the planning commission and city council.
• Requires willingness to participate by developers.
• Learning process to improve City functions.
Planning
Department
Planning
Commission
Matrix Score: 3
28 Strategy 3A.8: Ensure that there is a robust system in place to identify the evolving best practices for
managing housing developments being used by other communities. For example, Bloomington, St.
Louis Park, Brooklyn Center or others.
Staff Response Lead Partner
• This takes time. Only in hind-site do we understand
"Best Practices."
Planning
Department
22
• Requires willingness of other Cities to share
information.
• Staff regularly attend conferences, webinars, and read
articles to improve their work.
Matrix Score: 2
Strategy B: Reduce the Cost of Building, Renovating and Financing Quality
Housing
29 Strategy 3B.3: Expand the HRA levy to generate funds that can be leveraged for land acquisition, bridge
loans and renovations.
Staff Response Lead Partner
• Increases tax obligation on Edina Residents. Currently
the obligation is only $9 a year.
• Need to study effects on lowest income residents based
on the size of proposed levy increase.
Finance Director
Matrix Score: 2
GOAL 4: Encourage Sustainable Design and Technology in all New and
Substantial Rehabilitation Housing
30 Strategy 4.2: Promote active and passive energy efficiency in the design and placement of buildings and
trees and education of property owners regarding weatherization and energy efficiency.
Staff Response Lead Partner
• City has agreement with Center for Energy and the
Environment (CEE) Home Energy Squad to assess
homes for energy efficiency measures.
• Tree placement on property is considered to help
increase energy efficiency.
• Staff provides hand-out on where to plant trees for
hedgerow to block wind.
• There is a Tree ordinance in building code. Reviewing
tree ordinance - forthcoming Summer 2021.
• City conducting Tree give-aways with U of MN
document on tree placement.
Sustainability
Coordinator
City Forester
Matrix Score: 3
31 Strategy 4.5: Support mitigation of water run-off by encouraging use of rain gardens, rain barrels,
cisterns, permeable driveways and walkways, and appropriate landscape design.
Staff Response Lead Partner
• When redeveloping we have requirements for
stormwater management.
Sustainability
Coordinator
Engineering
Department
23
• We are a Blue Thumb partner and annually host
raingarden workshops.
• Other local government units and non-profit groups fill
this niche – providing resources for resilient landscaping.
We regularly promote their programs and materials.
• We have fact sheets on our flooding and drainage
webpage to help people understand how to better
manage drainage on their own properties.
• Rain garden and rain barrels have minimum impact.
Cisterns are expensive. Mixed impact on permeable
surfaces because they stop working if not maintained
properly.
• Items are minor and will not move needle.
Matrix Score: 4
24
IV. Strategies Where City has Limited Authority to Implement
Staff has determined that the following strategies are challenging to implement due to building
codes, or state or Federal law.
GOAL 1: Promote Life Cycle Housing
Strategy A: Promote Affordable and Attainable Housing
32 Strategy 1A.4: Promote affordable and workforce housing that includes a range of housing prices and
options, based on the principle that those who contribute to the community should have the
opportunity to live here.
Staff Response Lead Partner
• Staff needs to be cognizant of Fair Housing Laws.
• Advanced marketing to people who work in the City
may occur.
• Options remains to be limited as single family housing
prices keep rising, as do their corresponding taxes.
• Availability of land for Multifamily development is
limited.
• Creates more opportunities for people to live closer to
their work. Reduces travel time. Positive
environmental impacts.
Affordable
Housing
Development
Manager
Edina Housing
Foundation
Matrix Score: 2
33 Strategy 1A.5: Explore directing for a limited period of time, the City’s portion of the increased tax
value of tear down properties to support Affordable Housing.
Staff Response Lead Partner
• Diverts money away from other uses.
• Possible look at Citywide increase in market value to
avoid single out any one type of resident.
• Review increase in market value due to teardown and
allocate a portion of the increase to the AHTF.
• Makes available additional resources for affordable
housing programs.
• Requires political will.
Finance Director
Matrix Score: 4
Strategy D: Encourage Preservation and Promotion of Diverse Housing Stock
34 Strategy 1D.1: Assist neighborhoods in retaining starter housing stock that can accommodate young
families.
Staff Response Lead Partner
• Neighborhoods have no say in what individual
homeowners do with their houses.
Affordable
Housing
Edina Housing
Foundation
25
• City can create incentive programs. Development
Manager
35 Strategy 1D.3: Maintain some of Edina’s single-family, lower square footage housing stock.
Staff Response Lead Partner
• Property owners have rights to sell their homes to
whomever.
• Expensive for the City to step in an be a buyer.
• Staff working on developing an home rehab program.
Affordable
Housing
Development
Manager
Matrix Score: 4
GOAL 3: Reduce Building Cost
Strategy B: Reduce the Cost of Building, Renovating and Financing Quality
Housing
36 Strategy 3B.2: If underground or covered parking is required, be willing to fund it by Tax Increment
Financing (TIF) or other means of subsidy.
Staff Response Lead Partner
• Need to comply with TIF rules – either through the
creation of a Redevelopment TIF district in which case
blight needs to be detected and remedied, or through
an affordable housing TIF district. TIF simply for
parking is not allowed.
• Seek different options for funding.
• Another source of funding is possible, such as the
Trust Fund it it become robust enough.
• A better use of TIF is to pay for a high capital cost that
will reduce operating costs (I.e. solar panels)
Planning
Department
Finance
Department
Matrix Score: 2
37 Strategy 3B.9: Explore directing City portion of increment of increased tax value of tear down
properties to Affordable Housing Trust Fund.
Staff Response Lead Partner
• These funds would be directed away from general
fund.
• Possible look at Citywide increase in market value to
avoid single out any one type of resident.
• Need to study impacts.
• Seeking different funding sources.
Finance Director
Matrix Score: 3
26
GOAL 4: Encourage Sustainable Design and Technology in all New and
Substantial Rehabilitation Housing
38 Strategy 4.3: Require shadow studies on new or replacement
housing structures to ensure active and passive solar energy use
by adjacent properties is not adversely impacted
Staff Response Lead Partner
• State statutes limit the City authority to require, but
City could promote or incentivize.
• This might discourage tall buildings and increased
density.
• More research to determine best practices in this area.
Sustainability
Coordinator
Planning
Commision
Matrix Score: 4
39 Strategy 4.4: Promote water conservation by homeowners and housing property owners through
education about water conserving appliances and fixtures, and reusing wastewater.
Staff Response Lead Partner
• Reusing waste water: State Building code issue. We
may be years out from this endeavor in terms of
technology, policy, and scaling for residential housing.
Do not want to include as a strategy.
• People already conserving water for indoor uses as
appliances become more efficient; this is a form of
passive water conservation that doesn’t require
behavior change. Water efficient appliances are
common in the market.
• Irrigation summer use is still an issue. Promote native
vegetation.
• Set conservation tiers for water usage - look at pricing.
Add another top tier or shrink down range of existing
lower tiers. Charge people more when they use more,
would be designed to charge a higher rate for the
biggest users who are presumably using for irrigation
and not regular household drinking and/or cleaning.
Sustainability
Coordinator
Energy and
Environment
Commission
Matrix Score: 3
40 Strategy 4.6: Frequently review housing codes and policies to incorporate new technology regarding
alternative energy sources, new more energy efficient building practices, and conservation
Staff Response Lead Partner
• Building codes are governed at the State level. Sustainability
Coordinator
27
• City includes updates to state building code in
legislative priorities, and in annual resolutions of
support for more efficient building standards.
Matrix Score: 3
41 Strategy 4.7: Promote new construction and substantial rehabilitation projects to following leading
industry sustainability standards.
Staff Response Lead Partner
• State Building Code does not allow cities to require
more stringent building measures than the state. This
limits ability to require sustainable design of private
buildings.
• On HRA acquired property, through an RFP HRA can
request that developer incorporate sustainability best
practices as allowed by code.
• City offers new home construction training annually
(ERRCATS) where Sustainability describes best
practices and promotes resources to improve
sustainable design and construction.
Sustainability
Coordinator
Matrix Score: 3
28
Appendix: Goals and Strategies
GOAL 1: PROMOTE LIFECYCLE HOUSING
Actively work to create lifecycle housing to support a range of housing options that meet people’s
preferences and circumstances in all stages of life, such as renters, first-time homebuyers, empty
nesters, and seniors.
A. Promote Affordable and Attainable Housing
1) Prepare a housing implementation plan using a mix of tools to achieve the City’s housing
goals, including the Comprehensive Plan goal range of 992 to 1,804 affordable units, in the
ten-year horizon, with time-bound goals and milestones, to be reviewed on an annual basis.
2) Facilitate the development of “new” housing options such as accessory dwelling units to
accommodate the diverse needs of people of different ages, household sizes, lifestyle, and
incomes.
3) Attract new residents and retain existing residents by preserving and expanding housing
options for moderate- and low-income households.
4) Promote affordable and workforce housing that includes a range of housing prices and
options, based on the principle that those who contribute to the community should have
the opportunity to live here.
5) Explore directing for a limited period of time, the City’s portion of the increased tax value
of tear down properties to support Affordable Housing.
B. Promote Missing Middle Housing Production
1) Support opportunities to accommodate Missing Middle housing within the city, defined as
range of multi-unit or clustered housing types compatible in scale with single-family homes
C. Promote Special Needs Housing
1) Support a range of housing options for people with special needs (Developmentally,
29
Physically, or Mentally)
a) Families with a disabled member
b) Affordable housing for working households with a disabled member
c) Assisted living for individuals with disabilities.
D. Encourage Preservation and Promotion of Diverse Housing Stock
1) Assist neighborhoods in retaining starter housing stock that can accommodate young
families.
2) Encourage the preservation, maintenance, and rehabilitation of existing subsidized and
naturally occurring affordable rental and ownership housing (NOAH).
3) Maintain some of Edina’s single-family, lower square footage housing stock.
4) Support program(s) for assisting income eligible property owners with rehabilitating their
homes to extend their useful life.
5) Increase awareness about the range of housing variety that exists in Edina.
GOAL 2: AMEND LAND USE REGULATIONS TO ENABLE A MORE DIVERSE
HOUSING MIX
A) Adjust Zoning Standards for Housing
1) Provide zoning flexibility in the specific areas identified for development in the
Comprehensive Plan to streamline the public approval process for minor variances.
2) Continue to allow teardowns/rebuilds but consider design guidelines and regulations that
prevent privacy invasion via window placement and infringement on both active and passive
solar energy capture.
3) Allow for creative solutions and some flexibility in the provision of off-street parking
standards for housing. This might include options like shared parking, reduced minimums
near transit and activity nodes, or exceptions to structured parking requirements for
affordable housing.
30
B. Consider Zoning District Amendments to Expand Housing Options
1) Consider zoning amendments in limited areas (such as transitional areas and activity
nodes) and pursue zoning changes to encourage split lots to allow infill, to allow lot splits
for infill, single-family ownership housing, detached or attached (zero lot line), on lots after
splitting that are 50’ or wider (or 3,500 sf or larger).
2) Consider amending current R1 zoning to allow attached or detached Accessory Dwelling
Units (ADU) such as self-contained “mother-in-law units”. Develop Small Area Plans for
extending R2 zoning along Vernon Ave from 169 to Interlachen, France Ave north of Hwy
62, and Valley View from 66th to Hwy 100. Evaluate additional areas for R2 zoning.
3) Support the development and preservation of affordable housing throughout Edina where
there is access to transit.
GOAL 3: REDUCE BUILDING COSTS
A. Streamline the Approval Process for Housing Developments Requiring a Variance or Subsidy
1) Fully empower the City’s Community Development Department to identify properties for
development or redevelopment, analyze projects for both fit with the Comprehensive Plan
Design Guidelines and economic feasibility in prevailing market conditions, balancing
these two as needed. Communicate development objectives to developers and encourage
the preparation of proposals for development.
2) Implement active outreach and recruit developers with a successful track record in
providing the housing desired
3) Empower the City’s Community Development Department to guide developers through the
project approval process.
4) Provide better guidelines for development requirements, based on location and economic
objectives.
5) Simplify the current project approval process. Limit discussion to the variance or
Comprehensive Plan amendment issues being raised.
6) Conduct semi-annual project review meetings between Staff, City Council and Planning
31
Commission to discuss lessons learned, gain alignment, and determine policy implications
of projects completed in the past six months.
7) Complete Post-mortem reviews of the current development review process, paying
particular attention to assessing the level of quality of resulting developments. Identify what
developments have been delayed or have been negatively impacted by incurring additional
costs in the development process due to multiple levels of approvals or ad hoc design and
amenity requests.
8) Ensure that there is a robust system in place to identify the evolving best practices for
managing housing developments being used by other communities. For example,
Bloomington, St. Louis Park, Brooklyn Center, or others.
B. Reduce the Cost of Building, Renovating and Financing Quality Housing
1) Develop a parking policy that reflects the latest thinking for current and future parking needs,
parking construction costs, sustainability and evolving economic and marketability needs for
successful projects.
2) If underground or covered parking is required, be willing to fund it by Tax Increment
Financing (TIF) or other means of subsidy.
3) Expand the HRA levy to generate funds that can be leveraged for land acquisition, bridge
loans and renovations.
4) Utilize land trusts and land write-downs to secure land for future development projects.
5) Empower the City’s Affordable Housing Development Manager to be responsible for
establishing/evaluating the parking, design, and amenity requirements for affordable
housing developments to ensure economic viability of these projects.
6) Empower the City’s Affordable Housing Development Manager and the Director of
Community Development to be responsible for parking, design, and amenity requirements
for housing for seniors, people with disabilities and other housing market segments with
specific needs.
7) Authorize the City, through a public hearing process, to have authority to make property
purchases that are consistent with a city development strategy, within a financial limit, to be
32
able to secure control of potential properties for affordable housing development, in an
expeditious manner.
8) Fully utilize the other options the city has to lower the cost of development and or
financing (i.e. rebate on fees, tax exempt bond financing, upgrading to an Economic
Development Agency, selling land below market value, reduced property taxes, etc.).
9) Explore directing City portion of increment of increased tax value of tear down properties
to Affordable Housing Trust Fund.
GOAL 4: ENCOURAGE SUSTAINABLE DESIGN AND TECHNOLOGY IN ALL NEW
AND SUBSTANTIAL REHABILITATION HOUSING
1) Encourage alternative energy sources including solar, wind, waste material, and
geothermal.
2) Promote active and passive energy efficiency in the design and placement of buildings and
trees and educate property owners regarding weatherization and energy efficiency.
3) Require shadow studies on new or replacement housing structures to ensure active and
passive solar energy use by adjacent properties is not adversely impacted.
4) Promote water conservation by homeowners and housing property owners through
education about water conserving appliances and fixtures, and reusing wastewater.
5) Support mitigation of water runoff by encouraging use of rain gardens, rain barrels,
cisterns, permeable driveways and walkways, and appropriate building and landscape
design.
6) Frequently review housing codes and policies to incorporate new technology regarding
alternative energy sources, new energy efficient building practices.
7) Promote new construction and substantial rehabilitation projects to follow leading industry
sustainability standards.
Final Report from the
Edina Housing Strategy Task Force
ADOPTED BY THE EDINA HOUSING AND REDEVELOPMENT
AUTHORITY ON DECEMBER 10, 2020
ADVANCING HOUSING
PRIORITIES FOR EDINA
Report from the City of Edina Housing Strategy Task Force | i
Acknowledgements
Task Force Members
»Bernadette Hornig, co-chair
»Daniel Hunt, co-chair
»Janet Kitui
»Joe Burke
»Norm Siekman
»Steve Brown (joined January 2020)
»Thomas Koon *
»Feroza Mehta (served June - November 2019)
City Staff
»Stephanie Hawkinson, Affordable Housing Development Manager
»MJ Lamon, Community Engagement Coordinator
»Scott Neal, City Manager
»Cary Teague, Community Development Director
Consultant Team
»Merritt Clapp-Smith, Moxie Consulting LLC
»Janne Flisrand, Flisrand Consulting
»Antonio Rosell, Community Design Group
* A special thank you to Task Force member Thomas
Koon for providing many of the photos in this report.
Report from the City of Edina Housing Strategy Task Force | ii
Table of Contents
Executive Summary ................................................................................ 1
Chapter 1: Introduction ......................................................................... 6
Chapter 2: Housing in Edina – Current and Future ........................ 8
Chapter 3: What Shapes Housing in Edina? ....................................... 28
Chapter 4: Recommended Priorities for Edina Housing ................ 48
Goals and Strategies ............................................................................... 49
Priorities for New Housing in Edina ................................................... 53
Concluding Highlights ............................................................................ 54
Endnotes ................................................................................................... 55
Appendices ............................................................................................... 57
A.I - Getting from Here to There ........................................................ 58
A.II – Housing Definitions ..................................................................... 61
A.III - Housing Affordability and Income Qualifications ................. 66
A.IV - Regional Housing Need and Edina’s Role .............................. 68
A.V - References and Sources .............................................................. 69
A.VI - Responses to the Report .......................................................... 75
Report from the City of Edina Housing Strategy Task Force | 1
Executive Summary
The City of Edina is healthy and thriving. It has and continues to
be one of the most sought-after communities in the Twin Cities
for people seeking strong schools, lovely neighborhoods, amenities
like parks, convenient access to both downtowns, and a high quality
of life. The neighborhoods have distinctive character, from “urban
villages” like “The Lakes” to low rise townhomes and duplexes to
compact, small lot neighborhoods with sidewalks, to large lot estates.
The diversity of neighborhood options provides people with a place
to call home during different phases of their life, based on income,
household size and lifestyle.
As demographics, economics and people’s lifestyle habits change,
housing preferences change as well. Edina has a diverse mix of
housing types and changes in this mix have occurred and are likely to
continue changing. As an example, in 2010 Edina’s housing was 57%
single-family and 43% multi-family. In 2019, it was 53% single-family
and 47% multi-family. If the projected growth trajectory is realized, it
is likely that by the end of 2040 there will be more multi-family units
than single- family units resulting in significant change in Edina.
Housing projections in Edina and other Twin Cities communities
are guided by a process that starts with the Metropolitan Council.
Every 10 years, the Metropolitan Council updates its general growth
projections for the Twin Cities region and from these projections,
it allocates a growth percentage to each community in the region.
Within this allocation is a community’s share of recommended new
affordable housing units to help meet the projected regional need.
The allocated number of affordable housing units for Edina in this
cycle is significant and requires and deserves Edina’s leadership. City
staff and volunteer community groups used the housing allocations
to guide housing and land use policies in the Comprehensive Plan
update. The policies were also informed by consultant reports,
market trends and community engagement. In 2020, the Edina City
Council approved the 2040 Comprehensive Plan with a Housing
Chapter that provides data, goals, and strategies to advance city
housing objectives.
To get additional community engagement and direction on the
housing policies in the 2040 Comprehensive Plan, the City Council
commissioned this Housing Strategy Task Force in 2019 to provide
further guidance around housing priorities for the City. This seven-
person task force, composed of individuals with a variety of views
and opinions, came together over an 18-month period to develop the
recommendations in this report.
Report from the City of Edina Housing Strategy Task Force | 2
The Housing Strategy Task Force has embraced three key Principles
to guide housing policy in Edina. These Principles are consistent with
key housing themes from the Edina 2040 Comprehensive Plan.
»Supply and Growth: Plan to accommodate projected residential
growth.
»Housing Choice: Support the development of a wide range of
housing options to meet the diverse needs and preferences for
the existing and future Edina community.
»Affordability: Encourage the development and maintenance
of diverse housing options affordable to residents at a range of
incomes and life stages.
Additionally, these factors influenced the recommendations of the
Task Force:
»Metropolitan Council’s allocation of new housing units,
particularly affordable units, to individual cities.
»Comprehensive Housing Market Analysis for the City of Edina,
April 2020 [henceforth referred to as the “Maxfield Housing
Market Study”]
»Interviews and reports from developers, planning experts,
neighboring cities’ staff, and Edina city staff and council
members.
»Task Force desire to support housing policy that is consistent
with “community drivers”
»City and Task Force desire for economic diversity
»City and Task Force desire for racial and ethnic diversity
The City of Edina commissioned Maxfield Research and Consulting
to do a housing market study to examine the city’s housing supply
and demand, relative to market needs and trends at the local and
regional level. The report was completed in April 2020. The report
identified “gaps” in the Edina housing stock, where demand far
exceeds supply.
Based on the market study, the Comprehensive Plan, and
extensive research by the Task Force, this report identifies
four priority goals for housing development:
1) Promote Lifecycle Housing
2) Enable Diverse Housing Stock
3) Reduce Housing Development Costs
4) Encourage Sustainable Design and Technology
More specifically, this task force recommends five priorities for
the provision of new housing in Edina, based on the Edina City
Council’s approved housing numbers in the 2040 Comprehensive
Plan, and further informed by the Maxfield Housing Market Study.
Executive Summary
Report from the City of Edina Housing Strategy Task Force | 3
Priorities for New Housing in Edina
1) Add 992* affordable rental housing units
»80% affordable rental for general
occupancy [see note]
»20% affordable rental for active
seniors
2) Add 900** market rate rental housing
units for general occupancy
3) Add 360** senior independent living,
congregate housing units
4) Add 250** owned multi-family housing
units
5) Add 200** senior assisted living housing
units
*Metropolitan Council
**Maxfield Housing Report
Note: ‘General Occupancy’ is a term for
all housing types, available for purchase or
rental by people of any age and ability level.
The term is used to differentiate from age-
restricted housing for 55+ ‘active adults’ and
senior housing.
Owned, multi-family at Halifax condominiums on
50th near France Ave. Source: Tom Koon.
Senior assisted living and memory care at Yorkshire.
Source: Tom Koon.
Affordable rental at Oak Glen Apartments. Source:
https://www.rent.com/minnesota/edina-apartments
Market rate rental at The Lorient. Source: Tom Koon.
Executive Summary
Report from the City of Edina Housing Strategy Task Force | 4
This Task Force recommends the following next steps for the City Council:
»Solicit additional input from city residents regarding the
recommendations in this report. This should include use of
the biennial Quality of Life survey of Edina residents in 2021
to test additional questions on housing and obtain statistically
valid feedback from a larger sample of residents. In addition,
the city should host focus group discussions about these report
recommendations and how to advance them when public health
measures allow.
»Evaluate the impact of the increased population and housing
growth rate, by housing type, on all areas of the city.
»Use the five priorities to evaluate new housing proposals when
considering additional developments and growth.
»Evaluate and streamline the current approval process for housing
development.
»Recognize that to achieve the affordable housing goal of 992
units in the next decade, after having built only 98 of the 212
units goal for the past ten years, the Council and City Staff must
redouble their current laudable effort and provide the needed
financial support and political leadership.
Details, background, and strategies that follow in this report will
allow readers to better understand the context and appropriate use
of these recommendations. The overarching goal of this report is to
provide housing recommendations that will keep Edina healthy and
thriving over the next decade.
Working in Special Times
The Task Force wants to note two special circumstances that
affected the process of its work, as well as its view of housing in
light of economic and socio-political events.
COVID-19: This report was developed during the COVID-19
pandemic, which limited the Task Force’s ability to obtain
community input through focus group meetings and other means
of communication. The Task Force recommends that the goals
and recommendations of this report be thoroughly reviewed with
the residents of Edina when public health conditions allow. This
review can include a better understanding of how the COVID-19
pandemic may influence the future design of housing, at-home
workspace, and congregate housing such as senior living.
SPOTLIGHT ON DISPARITIES: The year 2020 was also
marked by the social unrest in Minneapolis and across our
nation resulting from the killing of George Floyd at the hands
of Minneapolis Police. Based on discussions at the regional
and state level, there may be greater priority on policies and
resource allocation to address racial disparities across systems
such as employment and housing. The pandemic and heightened
awareness of racial disparities following the George Floyd killing
contributed to the context in which the Task Force discussed and
evaluated the future of housing in Edina, and will continue to
inform future housing priorities in ways that we cannot currently
anticipate.
Executive Summary
Report from the City of Edina Housing Strategy Task Force | 5
1
Introduction
Report from the City of Edina Housing Strategy Task Force | 6
Chapter 1: Introduction
This report is the culmination of work by the Edina Housing
Strategy Task Force, which began meeting in June 2019. The Edina
City Council created the Task Force with the following charge:
PURPOSE - Support the City’s development of a comprehensive
housing strategy.
OBJECTIVE - Gather information, perspectives and provide
analysis that assists in the development of a comprehensive
housing strategy for the community.
The Task Force had seven members, representing different
perspectives and housing experiences in Edina. One member needed
to resign, but she was soon replaced with another to maintain a Task
Force of seven people. City staff organized and supported the Task
Force work, and periodic updates were provided to City Council on
Task Force progress. About halfway through the Task Force work, a
consultant was engaged to prepare a final report reflecting the Task
Force’s findings and recommendations.
During its work, the Task Force met 45 times, heard presentations
from 10 people (from the Edina Chamber of Commerce, the Edina
School District, Metropolitan Council, Center for the American
Experiment, and Mapping Prejudice, to name a few), and interviewed
19 people (including developers of affordable, market-rate and senior
housing, architects, staff from the Edina school district, and housing
and development professionals from nearby cities). The Task Force
felt it was very important to have first person presentations and
interviews with people to hear a variety of viewpoints and ideas.
The Task Force also reviewed dozens of articles, reports, data sets,
and opinion pieces on housing generally and specific to Edina. They
discussed points of interest and debated areas of difference.
This report provides a synthesis of the group’s research, discussions,
and topics of shared interest, and recommendations supported by
the group. Any single point or item in this report may be viewed a
bit differently by each Task Force member, which is healthy and to
be expected of a group intended to represent a range of people and
ideas in the City of Edina.
This report is organized into three sections:
»Housing in Edina – Current and Future
»What Shapes Housing in Edina
»Recommended Priorities for Edina Housing
Each section builds on the prior section, starting with existing
conditions and what is changing, moving to what can influence
housing change in Edina, followed by Task Force recommended
Goals and Strategies.
This report complements and advances the ongoing work by the
City of Edina to proactively address its high-quality mix of housing
options.
Report from the City of Edina Housing Strategy Task Force | 7
2
Housing in Edina:
Current and
Future
Image courtesy of Lander Group.
Report from the City of Edina Housing Strategy Task Force | 8
Chapter 2: Housing in Edina – Current and Future
Edina has the reputation as a desirable place to live with a variety
of housing options. The variety of living options provides the
foundation for a vibrant city, serving people of different lifestyles,
household sizes and incomes.
Housing diversity can be measured in different ways:
»Housing Type or Style
»Rental or Ownership
»Price
»Assisted or Supportive
Edina housing provides good diversity in a number of these ways
and offers more limited options in others. Demographic shifts in
Edina, mirroring the United States a whole, have resulted in an
aging population and reductions in family and household sizes. As
the age and size of households change, so too does the demand for
certain types of housing. If Edina wishes to retain residents with
changing housing needs, while attracting new residents who reflect
the region’s demographic trends, then Edina must consider which
policies, programs and regulations will best provide the needed range
of housing.
Report from the City of Edina Housing Strategy Task Force | 9
Types of Housing
Opportunity: Enhance Edina’s housing mix with
duplexes, triplexes, quads, and townhomes
Edina neighborhoods are primarily composed of single-family
homes. 88% of residential land in Edina is used for single-family
homes, compared to 12% for multi-family homes.1 However, due to
the greater number of homes per acre in multi-family areas, the 12%
of residential land that is multi-family hosts 47% of Edina’s current
households. This means that as the City looks to accommodate future
growth, it can do so using only a small fraction of the City’s land.
Edina currently offers a good mix of single-family and multi-family
housing types, while having relatively few townhomes and 2 - 4-unit
housing units. In 2019, the mix of housing types in Edina was:
»53% single-family
»39% apartments and condos
»6% townhomes
»2% duplexes, triplexes, and quads
Between 1990 and 2010, the mix of housing types remained fairly
consistent, and then began to shift around 2010, with almost all new
housing being multi-family. This trend is expected to continue for the
foreseeable future.
Mix of Housing Types in Edina, 2019
Duplexes, triplexes and quads
2%
Townhomes
6%
Apartments and condos39%
Single-family53%
Mix of Housing Types in Edina - 1990 to 2019
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1990 2000 2010 2019
Single-family detached Duplex, triplex and quadTownhomes (single-family attached)Multifamily (5 units or more)
Figure 1: Edina mix of housing in 2019. Source: Metropolitan Council.
Figure 2: Edina mix of housing since 1990. Source: Metropolitan Council
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 10
Single-family detached housing accounts for 53% of Edina’s residential units and occupy 88% of all residential land in the city.
Apartments and condominiums account for 39% of all Edina housing. They are identified as “multi-family” housing, which occupies
12% of Edina’s residential land.
Image courtesy of www.joshsprague.com
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 11
Townhomes account for 6% of Edina housing and are classified as “multi-family”.
Duplexes, triplexes, and quads account for 2% of Edina housing and are classified as “multi-family”.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 12
Maintaining a variety of housing and neighborhood options allows
people who love Edina to stay there over their lifetime. Long-term
residency can deepen community ties, foster strong connections
between residents and city institutions, and improve health outcomes
for the residents.
“There is strong evidence characterizing housing’s relationship to health. Housing
stability, quality, safety, and affordability all affect health outcomes, as do physical
and social characteristics of neighborhoods.”
~ Housing and Health: An Overview of the Literature
2
“Missing middle” housing encompasses housing between the scale of low and
high densities, providing both an option to meet needs, and a built form type that
can transition between adjacent districts of different levels of scale and intensity.
These may include co-housing, duplexes, triplexes, fourplexes, and other smaller
scale multi-family types.”
~ Edina Comprehensive Plan
“Missing middle” housing is somewhat larger than a single-family
structure and smaller than typical multi-family buildings. This
scale makes Missing Middle housing adaptable to many residential
areas, be they predominantly single-family or multi-family. Missing
Middle homes offer the opportunity to create housing variety within
neighborhoods, as well as to transition between high density areas
and low-density areas.
Figure 3: Continuum of housing types by scale, highlighting “missing middle” types. Source: Opticos Design.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 13
Missing Middle housing is gaining in market popularity,
and Edina’s demographic trends show growth in the
areas with greatest preference for these housing types. If
Edina wishes to match people’s interest in these housing
forms and diversify its housing stock, then it will need
to proactively foster them with tools such as focused
zoning districts, flexible design standards, targeted finance
programs for affordable midsize housing, and outreach to
specialized builders.
“With the overall aging of the population, more households are
looking for greater convenience and less space in their housing and
are selecting twin homes, detached townhomes, and condominiums.
Typically, the target market for owned multi-family housing is
empty-nesters and retirees seeking to downsize from their single-
family homes.
In addition, professionals, particularly singles and couples without
children also seek these products if they prefer not to have the
maintenance responsibilities of a single-family home. In many
housing markets, younger households also find purchasing owned
attached housing more affordable than purchasing new single-family
homes.”
~ Maxfield Housing Study 2020
“MISSING MIDDLE” HOUSING is a
Housing Diversification Opportunity
for Edina
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 14
Rental and Ownership
Opportunity: Increase the proportion
of housing that is rental and alternative
ownership models.
Edina’s mix of rental and ownership housing has remained steady
for four decades, at around 73% ownership and 27% rental. This
homeownership rate is about 10% higher than Hennepin County and
about 5% higher than the Twin Cities region.
The proportion of rental housing in Edina has been stable and is
similar to the proportion regionally. Therefore, is there any reason for
Edina to take an active role in encouraging that mix to change? The
answer is ‘yes’ according to the Maxfield Housing Market Study for
Edina, completed in April 2020.
Lifestyle changes impact housing demand. The increasingly busy lives
of adults and children has meant less time to maintain a single-family
home and lot. Other reasons that people rent include convenience,
seasonal residency, and financial considerations. Nationally, the
fastest-growing group of renters are high-income people who choose
renting over owning.
In addition to rental, market interest in other alternatives to
traditional home ownership have grown. More people are exploring
options such as cohousing, cooperatives, and land trusts. Cohousing
provides unique social amenities such as congregate dining, movie
night, or other activities as decided on by the residents. Land trusts
and limited equity cooperatives are designed to provide more
affordable ownership, with varied ability to benefit from equity if the
property appreciates. Each is described briefly below and can apply to
different styles of housing.
COMMUNITY LAND TRUST – A community land trust (CLT) is a
nonprofit, community-based organization that provides perpetually
affordable homeownership opportunities. In the truest sense, a CLT
acquires land and removes it from the speculative, for-profit, real
estate market. CLT’s hold the land they own “in trust” for 99-years
for the benefit of the community by ensuring that it will always
Edina Housing Units - Ownership and Rental
1940 to 2018
0
5,000
10,000
15,000
20,000
25,000
1940 1950 1960 1970 1980 1990 2000 2010 2018
Owned Rented
Figure 4: Mix of ownership and rental homes in Edina since 1940. Source:
Metropolitan Council / US Census.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 15
remain affordable for homebuyers.3 The land is leased back to the
homeowner through a land lease.
A Local Example - Since 2007, the City of Edina has supported the West
Hennepin [County] Affordable Housing Land Trust (WHAHLT), also
known as Homes Within Reach (HWR), through the allocation of some of
Edina’s Community Development Block Grant program funds.
Since that time, 14 houses have been placed into a Land Trust to remain
affordable for 99-years. HWR establishes affordability by using the Community
Land Trust practice to acquire and retain the ownership of real property,
rehabilitate, and then sell the improvement (home) to buyers earning less than
80% Area Median Income (AMI).
The HWR Community Land Trust program removes the land value from the
mortgage equation to create initial affordability. The home costs less than market
rate homes because HWR buyers purchase only the house and enter into a
Ground Lease with WHAHLT-HWR to secure the long-term rights and use
of the land. This land trust practice offers long-term affordability, where each
affordable home will offer homeownership to 7-12 families throughout the life of
the lease. The homes are made permanently affordable for work-force homeowners
through two contractual provisions embedded in the Ground Lease.4
COHOUSING –A multi-family building or cluster of single-family
homes with separate living space for households that includes
communal areas such as gardens, kitchens, gathering spaces.
Cohousing residents consciously commit to living as a community.
The neighborhood’s physical design encourages both individual space
and social contact. Most cohousing communities use some form of
consensus as the basis for group decision-making on community
expectations, social events, and property care.
COOPERATIVE HOUSING – A legal ownership arrangement where
members own a share of the property (rather than an individual unit)
which often includes one or more multi-family buildings or even
a group of detached houses owned by the cooperative, and where
share owners are members and have rights to occupy one housing
unit. Some cooperatives are a “limited equity cooperative.” A limited
equity cooperative (LEC) is a cooperative model in which residents
commit to resell their share at a price determined by formula—an
arrangement that maintains affordability at purchase and over the
long term. Cooperative share owners enjoy all the tax advantages of
home ownership regarding the deduction of interest and property
taxes under State and Federal tax law. In Minnesota, many recent
cooperatives have been for seniors.
The Monterey Cohousing Community in St. Louis Park.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 16
Demand for single-family ownership housing in
Edina will remain strong, but opportunities to
expand the number of ownership opportunities are
extremely limited under current city zoning. The
best opportunity to open up single-family options
for new households in Edina is through turnover.
An increase in rental and alternative ownership
housing in Edina will give some existing single-
family residents who are ready to downsize the
option to move within the community, freeing up
their homes for new owners. Without alternatives,
people with more limited incomes may remain in
their existing single-family home to avoid the cost
of new housing and the expense and stress of a
move.
An increase in housing options enables the city
to better meet the rising demand for rental or
alternative ownership housing among empty
nesters, seniors, young families, and limited income
households who wish to live in Edina.
RENTAL HOUSING AT ALL PRICE LEVELS and
ALTERNATIVE OWNERSHIP HOUSING are
Housing Diversification Opportunities
for Edina
7500 York is a 337-unit, limited equity senior cooperative. Source: Thomas Koon.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 17
Housing Prices
Opportunity: Provide more housing that is
affordable to people who make less than
average median income.
Edina’s desirability has made it one of the most expensive places
to live in the region. This map shows the estimated price of single-
family homes in Edina. The distribution of single-family housing
prices in Edina is:
11% - $1 million or higher
43% - $500,000-$1 million
34% - $350,000-$500,000
12% -<$350,000
Map 1 shows homes in Edina color coded by price level, with red at
the high end of homes valued are over $1 million and purple at the
low end of homes valued at $350,000 or less. According to the City
Assessor, in 2020 the average home value in Edina was $548,500. In
Hennepin County it was $289,990.5
The strong demand for Edina living exceeds the available homes,
putting upward pressure on home prices. When neighborhoods
become more expensive, the number of people who can afford
to live there shrinks and some people move out in search of less
expensive housing or cannot afford to move in. Seniors on fixed
incomes, young families, and local workers in medium to low wage
jobs are disproportionately impacted by this phenomenon.
Map 1 - Estimated single-family home values in 2018. Source: City of Edina.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 18
Edina homes for sale in December 2020
priced around $350,000, the amount
considered affordable to a family of four
earning the Average Median Income in
the Twin Cities region in 2020. Source:
Realtor.com.
“In the 2019 Edina Quality of Life survey, 35% of respondents stated the most serious issue facing Edina is housing
[including teardowns, overdevelopment and affordability]. Most respondents listed the number of housing options in Edina
as fair and the availability of affordable housing as fair to poor.”
~ Maxfield Housing Market Study, 2020
The availability of entry level or affordable homes has been further impacted by the moderate priced
homes being acquired, demolished, and replaced with luxury homes. Between 2008 and 2019, 886
permits were issued for teardowns and replacement houses. The peak was in 2014 when 115 permits
were issued. According to the Maxfield Housing Market Study, the average price of a home torn down
in Edina has been in the mid $400,000s and the average value of the replacement house has been $1.2M.
The Task Force recognizes that there is little the City can do to preserve the more moderate priced
homes due to private property laws. Nonetheless some programs could be explored to incentivize the
preservation of these houses.
There are several ways to talk about the price of housing and housing affordability. Affordability can be
defined in the traditional sense, relative to Area Median Income, or it can be thought of in relation to
what people are able to pay. Here are some common terms used to talk about the price of housing:
Figure 5: Comparison of Edina home sale prices to other nearby areas. Source: Maxfield Housing Study, page 66.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 19
MARKET RATE - Housing sold or rented on the open real estate
market, with no subsidy, program, or contractual obligation that
limits the price. “Market rate” does not define housing value, it
may be very expensive or very inexpensive, depending on the size,
location, quality, age, and other factors.
HOUSING AFFORDABILITY - Housing is defined by HUD,
lenders, and other government agencies as ‘affordable’ when it costs
30% or less of the household’s gross income.
The Twin Cities Metropolitan Council measures affordability using
Area Median Income (AMI). Affordable Housing may or may not be
subsidized and it may or may not have contractual limits on the rent
or sales price. Low to moderate income affordability is defined at
four levels:
»Extremely low income (30% or less of AMI, or $31,000 in 2020))
»Very low income (30% to 50% of AMI, or $51,700 in 2020)
»Low income (50% to 80% of AMI, or $78,500* in 2020)
* The 80% AMI value is capped at the Area Median Income for
the United States as a whole. See Appendix III for more detailed
information on affordability thresholds.
NATURALLY OCCURRING (MARKET RATE) AFFORDABLE
HOUSING (NOAH) - Homes that are affordable because the market
price or rent falls into a range that can be considered affordable to a
low- or moderate-income household.
Subsidized Affordable Housing - The Twin Cities Metropolitan
Council measures affordability using Area Median Income (AMI).
Affordable Housing may or may not be subsidized and it may or may
not have contractual limits on the income of the residents and/ or
rent or sales price.
ATTAINABLE HOUSING - Housing that meets affordability
thresholds for moderate income households, between 80% and 120%
percent of the Area Median Income.
»Moderate income ($78,500 to $118,910 for a family of four in
Edina in 2020)
WORKFORCE HOUSING - The National Association of Realtors
defines workforce housing as being affordable to workers and close
to their jobs. It includes ownership, and rental homes that can
be reasonably afforded by a moderate to middle income, critical
workforce and located in acceptable proximity to workforce centers.6
HOUSING COST BURDEN occurs when a household’s housing
costs exceed 30% of the household gross income, regardless of the
level of income.
Percent of Edina Households Experiencing Cost Burden
0%
10%
20%
30%
40%
50%
1990 2000 2010 2016
39%
43%43%43%
26%28%
19%19%
29%31%
26%25%
All Households Owner Households Renter Households
Figure 6: Rates of cost burdened households in Edina. Source: Metropolitan
Council / US Census.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 20
»For renters, housing costs include rent and utilities
»For owners, housing costs include mortgage principal and
interest, property taxes, property insurance, utilities, and other
fees.
“Americans may choose to spend substantially on housing to live in neighborhoods
that provide access to health-promoting features such as schools and parks.
However, a lack of affordable housing options can affect families’ ability to make
other essential expenses and can create serious financial strains.”
~ Housing and Health: An Overview of the Literature, Lauren Taylor, June
7, 20187
Figure 6 shows that nearly one third of Edina households were
cost burdened in 2016. Renters are more likely to experience cost
burden in Edina than homeowners. People at any income level can
experience cost burden if they pay more than 30% of their income
for housing.
For example, if a household’s income is $100,000, then the
household would be classified as “cost burdened” if their annual
housing expense exceeded $30,000, or said another way, if their home
cost more than $370,000 (depending on the interest and term).
This map identifies all existing structures in the city that have
affordable units, regardless of how they are financed. It includes
a mix of rental and ownership. The pink and orange dots show
properties that have a market price that makes them affordable
without subsidy (NOAH) to households with annual incomes less
than 80% and 60% of the Area Median Income (AMI). Yellow,
red, and green dots show subsidized affordable developments
contractually obligated to be priced at or below 60% of AMI. The
blue dots represent homeowners who received second mortgage Map 2: Ownership and rental properties affordable to households in Edina making
at or below 60% AMI, as of 2020. Source: City of Edina.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 21
financing through the Come Home 2 Edina program. At the time
of acquisition, the homes needed to be valued below a certain
threshold that has changed over time. When the homes sell there is
no obligation to remain affordable.
Here is information about multi-family housing built in Edina
between 2010 and 2020
»100% of affordable housing options are rental.
»7% of the rental units built are affordable.
»0% of affordable housing options are ownership.
Affordable homes, both rental and ownership, tend to be older.
»100% of affordable ownership housing was built before 1990 and
all are multi-family (condominiums).
Since the 1970s, the pace of adding subsidized affordable units in
Edina slowed.
»33% were built in the 1960s
»38% were built in the 1970s
»10% have been built since the year 2000
Of new housing units built in Edina over the 15-year period
from 2003 to 2018, 97% were market rate and only 3% were
subsidized to make them affordable to people making less
than 60% of Area Median Income.
Naturally Occurring Affordable Housing (NOAH) units across
the Twin Cities have rising values/rents due to increased demand,
including in Edina. Existing homes that were previously affordable
at or below the 60% level have increased in price beyond that
affordability, decreasing the City’s net stock. It is prudent to look at
the net stock of affordable units in Edina each year to understand
how affordable units being added may or may not replace those that
are lost. The City began an annual count of multi-family NOAH
properties in 2019, to track trends in the gain or loss of NOAH
inventory.
“There is a demand/need for more modest homes across the Twin Cities and
in Edina... particularly housing targeted to entry-level buyers (i.e. low to mid-
$300,000s).”
~ Maxfield Housing Market Study 2020
New Edina Housing Units by Affordability and Tenure, 2003 to 2018
0
100
200
300
400
500
600
700
2003200420052006200720082009201020112012201320142015201620172018Affordable Rental Affordable OwnershipMarket Rental Market Ownership
Figure 7: Market and affordable housing units built since 2003. Source: New
housing permits in Edina.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 22
How New Multi-Family Housing Impacts Nearby
Home Values
The potential impact of new housing construction on the value
of existing homes is frequently questioned. The most common
questions follow, with research findings on each.
1. At a regional level, does increasing the supply of housing
in an area help to bring down the price of existing housing,
because the increased housing supply reduces the inflationary
price pressure of unmet demand?
YES - Economists and policymakers share a consensus that building
more homes, and thereby increasing supply, drives down housing
prices within a market. New research is emerging on how adding
homes affects affordability of homes within a few blocks of new
apartments. A 2019 study from the Upjohn Institute8 found that on
a macro level, such as a metropolitan region, the effect of adding
housing units at any price, reduces upward housing cost pressures,
making the region’s housing more affordable than it would have been
without the added housing.
“New market-rate construction loosens the housing market in such areas and,
moreover, could do so in less than five years. This implies that market-based
strategies can play an important role in improving housing affordability for
middle- and low-income households.”
2. At a local level, does the addition of affordable housing
decrease the value/cost of nearby properties?
NO - Research9 shows that building an apartment building near
single-family homes does not decrease their value. In a 2016 article
posted on Trulia (a subsidiary of Zillow) entitled “There Doesn’t Go
the Neighborhood: Low-Income Housing Has No Impact on Nearby
Home Values,” concluded that in the nation’s 20 least affordable
housing markets, low-income housing built during a 10-year span
shows no effect on nearby home values. A few years earlier, the
locally based Family Housing Foundation concluded the same.
“Whether in the Twin Cities or elsewhere in the country, the evidence is
overwhelming: providing quality housing that lower-income families can afford
poses no threat to area property values.”
~ “Affordable Rental Housing Does Not Reduce Property Values: Evidence
from the Twin Cities” Family Housing Fund study, May 2014
3. At a local level, does adding new market-rate housing drive
up the cost/value of nearby rental properties?
IT DEPENDS - Recent studies10 indicate that adding new apartments
has a small, but statistically significant effect on nearby rental
properties, lowering their value (rent) slightly immediately after
construction. The higher the rent of the nearby units, the more
noticeable the short-term price drop will be. The research finds
that the impact on very low-rent apartments nearby is mixed,
showing both small decreases and small increases in rent following
construction of a new apartment nearby.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 23
MODERATE TO LOW-INCOME
HOMEOWNERSHIP and RENTAL are
Housing Diversification Opportunities
for Edina
“The City recognizes the need to provide affordable housing in order to create and maintain a diverse
population and to provide housing for those who live or work in the City.”
~ Edina Affordable Housing Policy
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 24
Assisted and Supportive Housing
Opportunity: Expand housing options for
residents seeking specialized design, services,
or care.
Thousands of Edina’s residents need some form of support or
assistance to maintain their health and home. This includes some
seniors on fixed incomes, people with physical and cognitive
disabilities, and people who have other barriers to maintaining stable
housing without support. The Maxfield Housing Market Study shows
that of an estimated 4,883 people in Edina with physical or cognitive
disabilities that may impact their housing options, 271 are children
under the age of 18, 1,235 are adults 18 to 64 years of age, and 3,377
are over the age of 65. The proportion of Edina residents with
disabilities is slightly less than the greater metro area. Edina currently
offers limited housing options for this population, which includes the
varied levels of direct support some people with disabilities need to
live independently.
Assisted Living
“Assisted Living” provides a semi-independent living option for
people with disabilities or adults who cannot live independently. This
type of housing t is an important part of the “Lifecycle Housing”
spectrum.
There is no universally accepted definition of an Assisted Living
housing development. These properties can provide various levels
of care and a diversity of services, ranging from basic board and
assistance with household chores, to medication management and
bathing assistance and limited Registered Nurse support. They usually
include common areas for socializing. Living space may consist of
independent apartments, hotel-like rooms, or congregate living.
Supportive Housing
Supportive Housing tends to be more clearly defined. “Supportive
housing combines affordable housing with services to help people
who face the most complex challenges to live with stability, autonomy
and dignity,” as described by the nonprofit Corporation for
Supportive Housing. It is an effective housing model for individuals
and families moving out of homeless and who also have serious
and persistent issues including chronic physical or mental illness,
substance use disorders and disabilities.
While the cost to construct and operate supportive housing is higher
than traditional affordable housing, research indicates that supportive
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 25
housing reduces use of homeless shelters, hospitals, emergency
rooms, jails, and prisons. Research also shows that supportive housing
interrupts cycles of homelessness.11 Furthermore, the data shows that
the deep development and operating subsidies required to own and
manage supportive housing properties are financially neutral or a net
benefit to communities.
“Lifecycle housing [offers] a full range of housing options for all stages of life,
from starter homes through continuum of care, so people can live their whole lives
in Edina as they choose.”
~ Edina Comprehensive Plan
Intersection of Assisted, Supportive, and
Affordable Housing
The need for assisted living, supportive and affordable housing
options overlap in providing homes for many people with disabilities.
People with disabilities tend to have lower incomes than the general
population. According to the American Psychological Association
and 2015 United States Census Statistics, the typical disabled person
in the United States makes 66% of the average median income. A
disproportionate number of disabled persons and their households
have incomes at or below the 80% Average Median Income limit and
need affordable housing. The American Institute for Research noted
that disabled Minnesotans with a bachelor’s degree had a disparity
in income of $18,000. A Cornell University analysis of 2018 U.S.
Census data found that 25% of disabled persons in Minnesota who
live outside an institution, live in poverty.
People with disabilities typically have higher medical costs, further
straining their household budgets. A higher rate of disabled
individuals may not marry or have a significant other, which limits
household wealth and income in the era of two income households.
Household expenses are strained by the cost of added therapies,
support, learning resources, and medical requirements for a disabled
child or adult family member. Households with a severely disabled
child may be limited in their income because one parent stays home
to care and out of the paying workforce, since needs based daycare
may be hard to find. The Minnesota Housing Partnership in 2018
cited that 27% of households in Minnesota with extremely low
incomes were disabled. In the United States, nearly 40% of those
households with a worst-case housing problem and 43% of those in
homeless shelters have a self-reported disability.
In discussions with special education teachers in the Edina Public
Schools and statistics around the country there is a noted increase
in children diagnosed on the Autism spectrum, other learning
disabilities and Attention Deficit Disorder. While these disorders
have a large range, many with these diagnoses will have trouble
commanding higher incomes in the workforce because of challenges
in obtaining advanced education, going through the job interview
process, or advancing in careers. Yet these children and their parents’
want to live as independently as possible and require affordable or
supportive housing.
Those with milder disabilities will need affordable or workforce
housing designed for singles or families with children. Those with
significant disabilities need age appropriate congregate or supportive
housing units. To meet the needs of current and future Edina
residents with significant disabilities more housing is needed. The
cost to construct and operate supportive housing is higher than
average housing, requiring deep development and operating funds
and specialized agencies to own and manage the properties.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 26
Assisted and supportive housing is important
to meet the needs of current and future Edina
residents. In adding these options, it is important
to recognize that many of these residents are also
income constrained and a significant proportion
of these housing types groups will need to be
affordable.
“The development of additional senior housing serves a
two-fold purpose in meeting the housing needs in Edina:
older adult and senior residents can relocate to new age-
restricted housing in Edina and existing homes and rental
units that were occupied by seniors become available to other
households.”
~ Maxfield Housing Market Study 2020
SENIOR AND SUPPORTIVE
HOUSING OF ALL TYPES is a
Housing Diversification Opportunity
for Edina
Avidor is a rental community in Edina for people 55 years and older. Source: Tom Koon.
Housing in Edina – Current and Future
Report from the City of Edina Housing Strategy Task Force | 27
3
What Shapes
Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 28
Chapter 3: What Shapes Housing in Edina?
The housing that exists in any community is the result of policies
and decisions made over time. To influence housing in the future
there are a number of options (such as policies, programs, plans,
guidelines) that the city can use. Understanding how these options
may have been used in the past, how they interact with one another,
and how they could be used in the future, will ensure intent and
outcome.
This task force has identified the following as forces shaping housing
in Edina:
1) Policy and Principles
2) Community Drivers
3) Demographics and Housing Trends
4) Regulations
5) Financing
6) Outreach
Report from the City of Edina Housing Strategy Task Force | 29
1. Policy & Principles
Public feedback about new development proposals can be strong,
with people speaking for or against a project based on issues (or
perceived issues) such as traffic, environmental impact, and impact
on property values. Public officials should consider their constituents’
input carefully and measure the issues raised based on what is
technically or legally relevant and within city control. In order to meet
the city’s housing needs into the future, there needs to be the political
will to make tough decisions and allow for flexibility and creativity in
future developments in Edina.
Past Attitudes and Housing Policies
The history of zoning is based on the premise that some land uses
are incompatible with one another, with one use having negative
consequences to the health, safety, and welfare of the other use.
Zoning provides a legal means to segregate certain uses from one
another, such as a heavy industrial use and a residential area.
Edina’s Planning Commission frequently reviews zoning requests
and studies elements of the zoning code that have unusually high
incidents of variance requests. Following adoption of the 2030
Comprehensive Plan around 2010, variance requests for multi-family
housing projects became frequent, because the number of limitations
in the code made it financially challenging and sometimes impossible
to develop projects without variances. These limitations made it
particularly difficult to produce affordable housing.
The recently adopted 2040 Comprehensive Plan addressed some
of the more prohibitive issues by amending the allowed uses within
certain districts. It also identified zoning code revisions that could
reduce the cost of new or rehabilitated housing. The Edina Planning
Commission is already studying potential zoning changes, which it
could recommend to the City Council.
To help understand where the City should go, it is important to
understand where we have been. Separating certain uses from
one another makes sense. The question is how much separation is
prudent and when does government regulation overstep.
When zoning began in the United States,12 it was used sparingly. In
1899 Washington D.C. enacted zoning to limit building height. In
1908, Los Angeles adopted zoning to prevent industrial uses from
moving into residential areas. However, zoning codes across the
country evolved to separate almost all types of uses. Zoning districts
were designated for one type of use – industrial, commercial, or
residential. That later evolved into districts for subsets of use, such
as heavy industrial and light industrial, large scale commercial from
neighborhood commercial, and differentiated residential districts by
type and density of housing - and race.
“What began as a means of improving the blighted physical environment in which
people lived and worked, [became] a mechanism for protecting property values and
excluding the undesirables.”
~ Yale Rabin, Urban Planner and Professor
In “The Color of Law,” Richard Rothstein documented 1910
zoning codes that included explicit racial zoning. People of certain
races were prohibited from living in certain zones. After this was
deemed illegal by the United States Supreme Court in 1917, many
zoning codes were written to allow only expensive, large homes on
large lots. They also prohibited less expensive duplexes and small
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 30
apartment homes. Black people and people of color were
systematically excluded from economic opportunity, and
zoning rules requiring expensive homes took advantage of
economic barriers to separate communities by race. Now called
“exclusionary zoning,” these requirements have the effect of
pricing out households with lower incomes.
Citing concerns about crime and property value declines
from white buyers, some housing developers added clauses to
property deeds that included racially restrictive covenants. In
Minneapolis, people began using racial covenants to segregate
neighborhoods in 1910. The first documented use in property
deeds in Edina is in 1916. The Mapping Prejudice project
has documented where racially restrictive covenants were
used across Hennepin County. While these covenants are no
longer legally enforceable, they have created persistent racial
segregation patterns. This map shows lots in Edina that had or
still have (unenforceable) racially restrictive covenants.
“Planning that regulated urban development through implementation of
master plans and capital improvement programs, as well as through a more
subtle sort of “racially informed zoning,” helped to create the racially
bifurcated social geography of most contemporary American cities.”
~ Christopher Silver, “The Racial Origins of Zoning in American
Cities” 199713
In Edina as elsewhere, local zoning and land use rules directly
impact the type, location and price of housing allowed in a
community. Requirements on lot size, lot coverage, landscaping,
building materials used, and minimum building size all drive the
cost of housing.14 For developers of affordable housing, strict
requirements translate to needing a higher level of subsidy per
unit to make them home affordable.
Map 3: Parcels in the City of Edina that had or still have racial covenants recorded
on the property deed. Source: City of Edina.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 31
Understanding the history of exclusionary housing policy helps
people recognize housing regulations that may reinforce patterns of
income exclusion. It is a matter of personal opinion whether active
zoning measures should be taken to reduce the income segregation
created by past housing policies.
Edina’s Housing Policy Vision
Edina seeks to be a welcoming, diverse, and inclusive community
for all who live, work, and spend time in the city. Furthermore,
Edina is committed to creating a community where every person can
contribute, thrive, and enjoy the benefits of all that our city has to
offer. Edina is committed to ensure that there is no systemic racial
discrimination that limits any person from living anywhere that they
wish in Edina. Moreover, the City has put processes and resources
in place to support the continuing growth of economic diversity
by welcoming new residents of varied economic strata. The Task
Force believes that the Goals and Strategies that are proposed in
this report make a positive contribution to continuing this growth
in making Edina an open and welcoming community with housing
opportunities for all.
The City of Edina has taken active steps in recent years to provide
and support housing for new residents across the economic strata.
Prior to the creation of this Task Force, the City of Edina took
steps in recent years to articulate and act on its vision and values for
housing. The Task Force believes that all of these actions have been
instrumental in continuing to make Edina a welcome home for all
families.
»In 2015, the City of Edina passed an Affordable Housing Policy
for new multi-family housing developments. This applied to
housing proposals that require a zoning change or financial
support. Prior to this policy, the City was behind its prior
Comprehensive Plan goal of 212 new affordable units. The 66
West project had been the only affordable housing development
in Edina’s recent history.
»In 2016, the City Council of Edina commissioned the Race and
Equity Task Force, resulting in the Race and Equity Initiative
Final Report and Recommendations, issued on June 26, 2018.
»In 2018, the City created a new position in the Planning
Department and hired its first housing specialist. This staff
person, the Affordable Housing Development Manager, is tasked
with pursuing and advancing new affordable housing projects in
Edina. In 2019, Edina hired its first Race and Equity Coordinator,
another step toward becoming a more racially inclusive and
equitable community.
»In 2020, the City Council approved an ordinance amendment
that requires all new residential developments with over 20 units
to designate some of those as affordable, even if a development
does not require city financing or approval as a Planned Unit
Development. The housing developer may opt out of including
the affordable units if they make payment to the city in lieu
of incorporating them. The city can then use these funds to
subsidize affordable housing units in future projects.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 32
»Since the Affordable Housing Development Manager has been
retained, the City has taken these additional steps to support
affordable housing:
-Passed the Fair Housing Policy
-Created the Affordable Housing Trust Fund
-Included Non-discrimination of Housing Choice vouchers
and the requirement for an Affirmative Fair Housing
Marketing Plan in the Affordable Housing Policy and
Ordinance
-Amended an ordinance to reduce the hookup fees to sewer
and water for new developments, if certain conditions are met
-Adopted a rental housing licensure program
-Adopted a finance program to help preserve NOAH
properties
-Received grant funds to enhance the tree canopy on affordable
housing sites
All of these actions demonstrate Edina’s commitment to be a more
racially inclusive, equitable and welcoming community.
The Edina Comprehensive Plan
Communities are complex ecosystems influenced by many
interrelated factors. Housing is one element in the ecosystem --
shaping and being shaped by other elements. When housing projects
are proposed it can be tricky for City policy makers to make data
driven housing decisions since housing preferences are often based
on personal opinions and lifestyle choices. It is human nature to resist
change in your immediate environment, even if you might support
it in principle. The NIMBY (Not In My Back Yard) objections of
neighbors to projects can occur in any area. In light of this response
to projects, it is important that policy makers have clear guidelines
for evaluation and decision making. Housing decisions should be
vetted through a consistent set of criteria, which take into account
the welfare of the entire city. This is where the Edina Comprehensive
Plan comes in.
Every 10 years, the State of Minnesota and the Twin Cities
Metropolitan Council require each city in the region to update
their Comprehensive Plan. The plan sets policies, goals, and
strategies in the areas of Land Use, Housing, Transportation, Water,
Environment, and other systems. A Comprehensive Plan update
requires extensive engagement from the community and is guided by
regional growth forecasts from the Metropolitan Council. The City
of Edina began its last update process in 2016 and formally approved
its new Comprehensive Plan in 2020.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 33
Metropolitan Council Affordable Housing Allocation for Edina
The Metropolitan Council forecasts the anticipated regional demand for new affordable housing units based on forecasted
regional household growth by income ranges. The Council then apportions a share of the needed new affordable units across
all Twin Cities communities. Each city’s portion of meeting the regional need is called its “Allocation”.
»Met Council’s forecasted demand for affordable housing across the Twin Cities region from 2021 to 2030 is 37,900
units.
»Edina’s Allocation of new affordable housing to help meet regional need from 2021 to 2030 is 1,804 units.
The ability to provide affordable housing is based on funding availability from various public sources. The Metropolitan
Council recognizes that financial resources for affordable housing from the Federal Government, State, County, Metropolitan
Council and City are limited. Based on estimated funding for affordable housing in the region, the Metropolitan Council
established a production goal of 992 units for Edina that it thinks is realistic.
This results in a Metropolitan Council goal range for Edina to produce between 992 new affordable housing units (based on
anticipated financial feasibility) and 1,804 new affordable housing units (based on anticipated regional need and Edina’s share
of meeting that need).
Goal Range for New Affordable Housing Units in Edina between 2021 and 2030, as adopted in the Edina 2040
Comprehensive Plan
Household Income as % of Average
Median Income
Edina’s Share of New Affordable
Housing needed to help meet regional
demand*
New Affordable Housing that
Edina can supply based on funding
availability*
30% AMI and below 751 (42%)413 (42%)
31% to 50% AMI 480 (26%)264 (26%)
51% to 80% AMI 573 (32%)315 (32%)
TOTAL affordable homes 1,804 992
Figure 8: Number of affordable housing units to be added in Edina, per the Edina 2040 Comprehensive Plan.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 34
2. Community Drivers
Community Drivers are those qualities of the Edina community
that make it an attractive and inviting place to live - they are those
characteristics that drive people to choose Edina as the place to be
for them and their families. These are well described by the City’s
Vision statement:
“Edina holds a well-earned reputation as a city of choice. It is a model of a
successful, mature, and progressive urban community, that strives to lead in a
modern and evolving world. We maintain our heritage and attractiveness, and
afford our residents the highest quality of life, while actively embracing the
future.”
Thriving communities share a number of things in common --
good schools, stable housing, proximity to jobs, accessible parks,
mix of local retail and services, and established neighborhoods.
Each of these factors complements the others, in a virtuous cycle.
Edina is fortunate to have these elements in place and has benefited
economically from rising land values and a strong tax base. We
are proud of these traits and intend to make them stronger. It is
critical to evaluate the relationship between housing and these key
“community drivers.” The Task Force considered the following
Community drivers:
»Quality of Life
»Jobs
»Schools
»Location and Transportation
»Demographics and Market Trends
Quality of Life
Since 2011, the City of Edina has conducted a statistically valid
Quality of Life survey every other year. The Quality of Life surveys15
have, overall, indicated that the residents of Edina believe that
Edina is a good to excellent place to live. The top five reasons that
residents choose to live in Edina are:
»Safe Community
»High performing Schools
»Desirable Community
»Distinct Neighborhoods
»Amenities (e.g. parks library, etc.)
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 35
The Quality of Life Survey also asked about people’s concerns, such
as, “All in all, do you think things in Edina are generally headed in
the right direction, or do you feel things are on the wrong track?”
Between 2017 and 2019, those who answered the ‘wrong track’
increased from 22% to 29%. Of these residents, 49% said that one
of their primary concerns was “Poor development/overbuilding/
density of the city,” which was an increase from 26% in 2017.
As the City looks to accommodate additional growth and housing, it
is important to better understand this concern and how to address it.
Due to public health concerns during the COVID-19 pandemic, the
Task Force was not able to do the type of community engagement
that is needed to investigate these concerns and to work with people
to find solutions.
The Task Force recommends that the concerns related to “poor
development/overbuilding/density of the city,” be investigated with
new questions in the 2021 City of Edina Quality of Life survey and
supplemented by focus group discussions when public health safety
allows.
Jobs
Edina is uniquely located with excellent proximity to key job centers
in the Twin Cities region – including Minneapolis, Bloomington,
and St. Paul. As a result, Edina is a convenient place to live for a
large share of the region’s employees. Edina’s central location and
employment base also makes it a convenient jobs center for people
from around the region. In 2019, Edina was home to 44,899 jobs,
across all employment sectors, and 98% of those jobs were filled by
non-residents of the community.16
Despite its central location, Edina employers may still find it
challenging to fill positions, and therefore seek solutions to make it
easier for their employees to get to work. Housing is one of those
solutions.
“Like employers throughout the MSP region, Edina employers are experiencing
talent recruitment challenges and report that prospective employees seek transit
access, housing within their household’s budget, quality of life amenities and
ongoing training and education to remain relevant in their field of expertise.”
~ Edina Comprehensive Plan, Economic Competitiveness Chapter
If Edina wants to provide housing options for people who work in
the city, then housing options should align with employees’ salaries
and desired housing types. Edina performed well by this measure for
decades, relying on the private market to deliver housing that was
affordable to many people who worked in and near the city. Today,
the private market struggles to fulfill that role, as the cost of housing
continues to rise faster than wages.
Employee at Braemar golf course. Source: City of Edina.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 36
Figure 9 shows a few prevalent job sectors that do not pay a
wage that allows those employees to afford the average mortgage
payment in Edina (based on 30% or less of wages for housing being
affordable to a household). Today’s young professionals, office
workers, construction trades, teachers, firefighters, and health care
aides cannot afford the types of homes in Edina that they could a
generation ago.
“Workforce housing gives working families more choice as to what neighborhood
they can live in. It also addresses affordability and offers homeownership
opportunities for moderate- and middle-income families. Additionally, there are
advantages to having employees live in the same community in which they work.
This includes decreased traffic and sprawl and shorter commute times for the
workers, leading to an improved quality of life. It also may increase the level of
community involvement if workers are able to live in the same communities in
which they work.”
~ National Association of Realtors
17
Schools
The relationship between housing and local schools is complex. In
years past, when neighborhood schools were the primary option for
communities, the relationship between local housing and the local
school was clear. Neighborhood schools reflected the demographics
of the community. The quality of the school was not based on the
students themselves, but on the resources available to educate the
students.
Today, the school and housing relationship is somewhat complicated.
Students in Edina are not limited to attending their neighborhood
schools. They can attend public schools, charter schools or private
schools. Under the Open Enrollment program, public school
students can apply to attend any school in any school district,
regardless of home address. Furthermore, the City of Edina straddles
three different school districts within its borders (Edina, Hopkins,
and Richfield), further disconnecting the relationship between
housing location and schools. Within this system, some limiting
factors on school choice remain. Private schools are financially out
of reach for many families, as they are for families who are unable
to drive the child to and from school. Popular schools may be
30% of Average Wages in Growth Industries vs.
Mortgage Payment on an Average Priced House
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
2000 2005 2010 2015 2019
Education Health ServicesLeisure & Hospitality Public AdministrationAnnual Mortgage Payment (30 yr, 5%)
Figure 9: Average wages compared to an average priced home in Edina.
Source: City of Edina.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 37
oversubscribed and hard to get into in the open enrollment system if
you live outside the school preference area.
Despite greater school choice today, proximity to high quality local
schools remain one of the most important factors that families
consider when seeking new housing. Everyone wants a good
educational experience for their children and most people prefer to
live close to their school. Thus, finding a home near a desired school
is important. Unfortunately, the area near the school may lack the
type and range of housing affordability families require.
The Edina School District did a ‘yield’ analysis to determine which
types of housing generated the most students. It found that averaged
across the city, a single-family house generates 0.54 students, with
duplexes yielding 0.30 students and apartments yielding 0.23 students.
Condominiums yielded a very low 0.03 students.18
The school district concluded that changes in single-family detached
housing stock (newly built units from tear downs and the sales of
existing units) have a significant positive effect on resident enrollment
in the Edina Public Schools. Edina’s per single-family detached
unit student yields look more like a developing area than a first ring
suburb. As a built-up city, Edina has the most potential to attract new
families and grow the student population in these ways:
»Allowing subdivision of large lots to build additional single-
family homes
»Adding duplexes and triplexes
»Adding apartments sized for families
»Encouraging turnover of single-family homes, which can be
assisted with the addition of multi-family housing options in the
city.
In addition to single-family homes, apartments, duplexes, and
triplexes are important for welcoming and maintaining a diversity
of students. When the school district looked specifically at where
BIPOC students lived, they found that they come from a diverse
range of housing.19
Location and Transportation
In the recent Edina Quality of Life Survey, people were asked to
write in their own words what they liked most about living in Edina.
40% of the comments related to the convenience, accessibility, and
walkability of Edina. Transportation options for residents going
to work, school and recreation factor heavily into how livable a
Figure 10: Average number of students per housing type. Source: 2018 report
by Edina School District.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 38
community is. Travel time takes time away from other daily activities
such as work, family and friends, exercise, rest, and play.
A community with a range of transportation options and proximity
to primary destinations, makes it easier for residents of all ages and
incomes to pick a transportation mode that works for them and to
minimize their time using it. Opportunities to take transit, walk or
bicycle between destinations reduces auto dependence and ownership
costs. Low-wage workers often have to work two jobs to pay the bills,
leaving less time to travel between home and workplaces.
“As transportation costs rise, it is becoming increasingly difficult to make the
economic case for “driving until you qualify” [for a reasonably priced mortgage]
because these increased costs consume much of the home price savings.”
~ National Association of Realtors
20
Edina is well served by regional
transit, with multiple connections
to the north, east and south. Within
the city limits, there are transit links
to job centers, commercial nodes,
and higher density housing areas,
but there are few transit connections
through and between the low-density
single-family neighborhoods. Areas
with limited transit access are more
car dependent and tend to have
higher average daily trips per capita
than areas well served by transit.
Shifting the proportion of trips by
cars to other modes, even modestly,
will benefit the city through reduced traffic and vehicle emissions.
Fewer vehicle trips also means less demand for street infrastructure
and maintenance, which can be a significant portion of a city’s
budget. The recently adopted Edina Comprehensive Plan calls for
adding a regional or municipal connector or shuttle bus service to
move people to major locations around Edina to lessen dependency
on cars. Another means to reduce driving within Edina is to locate
new housing near activity nodes that are already well-served by
transit, walk and bike infrastructure. Directing residential growth to
existing transportation hubs is faster and less costly to the city than
expanding multi-modal transportation infrastructure to less dense
residential areas. Focusing new housing growth near activity nodes is
a central policy in Edina’s Comprehensive Plan.
Suburban to Urban
One of Edina’s strengths is that it has already established a wide
variety of housing options and a wide distribution of housing
types. Future planning should continue to accommodate the diverse
housing in Edina.
The Metropolitan Council has designated Edina as an “Urban”
community. Urban communities are expected to plan for forecasted
population and household growth at average densities of at least 10
units per acre for new development and redevelopment. In addition,
Urban communities are expected to target opportunities for more
intensive development near regional transit at densities and in a
manner articulated in the 2040 Transportation Policy Plan.
Communities designated as “Suburban” communities are expected
to plan for forecasted population and household growth at average
densities of at least 5 units per acre for new development and
redevelopment. As a comparison, the cities of Eden Prairie and Source: Tom Koon.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 39
Minnetonka have been designated as Suburban communities by
the Metropolitan Council.
As shown in Map 4 - Future Land Use of Edina,21 the areas
of higher density in Edina are much less than the areas of low
density residential, defined as 1-5 housing units per acre. Edina
is a unique community in that it has some areas that are urban,
in addition to areas that are clearly suburban. The low-density
suburban residential areas are essentially fully developed and are
not likely targets for redevelopment as compared to high density
residential areas.
Given the history and current mix of household units in Edina,
when planning for development, Edina must account for the
needs of a suburban environment, as well as planning in specific
areas for an urban environment.
For examples, the Metropolitan Council recommends the
implementation of travel demand management policies that
encourage the use of travel options and decrease reliance on
single-occupancy vehicle travel. However, since Edina includes
large suburban areas, vehicle travel must be accounted for in
planning for parking for mixed use and retail areas for the
foreseeable future. Development in areas such as the Southdale
area should take into consideration appropriate parking
requirements specific to the area and driven by market demands.
Residents in the low-density residential areas of Edina will
continue to rely on automobile transportation for the foreseeable
future and retail parking will need to accommodate the needs of
these residents by providing user friendly parking alternatives that
meet the needs of single-family residents in a suburban setting.
Map 4: Future Land Use Map for Edina. Source: Edina 2040 Comprehensive Plan.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 40
3. Demographics and Market Trends
This report identifies strategies to implement the housing goals
identified in Edina’s Comprehensive Plan, and to address the
expected gap between natural market growth and the growth in
housing demand, as identified in the Maxfield Housing Market Study.
Edina Comprehensive Plan
Figure 11 from the Comprehensive Plan shows growth in Edina’s
population and households since 1960, and anticipated growth
through 2040. After rapid growth in the 1960s, growth in population
and households between 1970 and 2010 was modest. Since 2010, the
pace of growth has picked up and is expected to continue through
2040.
»From 1980 to 2010 (30 years), Edina’s population grew 4% and
the number of households grew 15%.
»From 2010 to 2040 (30 years), Edina’s population is projected to
grow 32% and the number of households to grow 44%.
Since the areas in Edina zoned for single-family homes are virtually
built out, there is likely to be very little growth in single-family
housing units to accommodate future growth. Rather it will take place
in multi-unit buildings (duplex, triplex, quad, townhomes, and multi-
family housing with five or more units). With this in mind, Edina
can anticipate and plan for a change in its housing mix, as shown in
Figure 12.
In 2019, housing units in Edina were 53% single-family and 47%
multi-family (2+ units). By 2040, based on the projections in the
Edina Population and Households
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1960 1970 1980 1990 2000 2010 2020 2030 2040
Population Households
Single Family Units vs. Duplex, Triplex, Quad and Multi-Family Units Through 2040
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
1990 2000 2010 2020 2030 2040
Single Family (Attached and Detached)Duplex, Triplex, Quad and Multifamily
Figure 11: Growth in Edina population and households. Source: Metropolitan
Council.
Figure 12: Past and projected mix of single-family and multi-family housing in
Edina. Source: US Census and Metropolitan Council.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 41
Comprehensive Plan, the balance will flip, with slightly less than 50%
single-family and slightly more than 50% multi-family.
Maxfield Housing Market Study
In 2019, the Edina City Council commissioned a housing market
study from Maxfield Research and Consulting to determine the
market demand for different types of housing in Edina. The report,
titled “Comprehensive Housing Market Analysis for the City of
Edina, Minnesota,” was completed in April 2020.
The report includes in depth information and analysis of
demographic trends, existing housing in Edina, and anticipated
demand. The Maxfield analysis found that housing market demand in
Edina exceeds the minimum goals for new housing units identified in
the Edina Comprehensive Plan (which were based on Metropolitan
Council’s allotment of new units needed in Edina to help meet
regional housing needs).
The Maxfield analysis identified the total demand for new housing in
Edina as 5,568 units by 2030.22 This exceeds the forecasted growth
of 3,700 new homes for Edina, as identified in the Edina 2040
Comprehensive Plan.
Maxfield then analyzed the expected supply of housing in Edina
through 2030, compared to the anticipated need for housing in all
housing categories. In almost all cases, the level of demand exceeded
the expected supply that would be provided under existing market
conditions, policies, and regulations in Edina. The difference between
supply and demand is considered the market “gap”, where additional
efforts are needed by the city to advance specific housing types. The
Maxfield report is a must read for anyone who wants to understand
more about the expected demand and supply, and the resulting
Maxfield recommendations. Maxfield identified housing demand by
types of units within the “General Occupancy” categories and the
“Senior Housing” categories (Figure 13).
Figure 13: Anticipated demand for housing by type in Edina between 2020 and 2030, with “Senior Housing” types described. Source: Maxfield Housing Study.
Table 1
GENERAL SENIOR
TYPE Demand TYPE
Rental - Market 1377 Active Adult - Market; Rental
315
Rental - Affordable 1456 Active Adult - Affordable; Rental 576
Owned Single-family - Market 109 Active Adult - Market; Ownership
220
Owned Multi-family - Market 461 Independent Congregate Living 553
55+ and Other Senior 2165 Assisted Living 298
Memory Care 203
55+ and Other Senior39%
Owned Multi-family - Market8%
Owned Single-family - Market2%
Rental - Affordable26%
Rental - Market25%
Memory Care9%
Assisted Living14%
Independent Congregate Living26%
Active Adult - Market; Ownership10%
Active Adult - Affordable; Rental27%
Active Adult - Market; Rental15%
1,456
109 461
2,165
1,377
298
203 315
576
220
553
1
Demand for General Occupancy and 55+ and Senior Housing in Edina 2020 to 2030
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 42
4. Land Use Regulations
The strongest tool that a city has to expand or limit housing is land
use regulation. Land use rules determine what can be built, where
and the process for review and permitting. A city’s zoning code, like
the Edina code found here, is the primary way a city impacts housing
development and redevelopment. Zoning rules identify what can
be built, but do not make things happen. For example, two projects
that are part of the Southdale office center redevelopment, 7200
France and The Avenue on France, had zoning approval to proceed,
but both projects stalled for other reasons. Common reasons that
projects fold, despite being allowed under zoning, are lengthy process
review by public entities, lack of community support, financing
issues, or changes in market demand.
Zoning Rules Impact Housing Costs
Many different costs determine the price of a new single-family or
multi-family home. The two biggest expenses for new housing are
land purchase and materials/construction costs. [Article “Why are
new apartments so expensive?” available at Open: Housing] Zoning
and land use rules also add significant costs to building homes of
all types. These rules might be at the State, regional or city level. At
the regional level, the average cost to build a single-family home is
affected by the Metropolitan Council’s tight MUSA (Metropolitan
Urban Service Area) allocation that decreases affordability
throughout the region by raising land cost. Fortunately, there are a
number of things that can be done at the city level through flexible
zoning and streamlined review and approval procedures.
Land Costs
When building a new home, the cost of the land can be substantial.
If local zoning requires a large lot for a home, then the price of
that new home will be higher from the outset than one allowed on
a smaller lot. When a lot is allowed to provide more than one home,
the price of the land is split among the homes, reducing the base land
price for each unit. The land cost goes down with every additional
household. Edina could promote the construction of less expensive
homes by allowing smaller lots or allowing multiple homes on a lot in
specific areas of the city where the density would be compatible with
surrounding land uses.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 43
Here is a list of common zoning requirements, which drive up
housing costs or disallow less expensive housing options, ordered
from most expensive to least:
»Requirements for parking – minimum number of spaces;
structured parking
»Prohibitions on mother-in-law apartments, duplexes, triplexes,
townhouses, garden, walk-up, or low-rise buildings
»Restrictive height and density limits
»Buildings setbacks
»Mandatory basements
»Minimum unit or bedroom sizes
»Exterior finish requirements
Reducing more expensive requirements at the local level does not
reduce construction quality since the State Building Code sets quality
building standards to ensure safe, durable, and healthy homes.
Just as zoning and land use controls facilitated segregation, they can
be re-envisioned and revised to reopen housing choice for a wider
range of households by allowing for wider varieties of well-built,
less expensive homes. The City of Edina can use its own zoning and
land use regulations to help affect the underlying price of housing in
Edina, but State and regional land use rules also have an impact.
Review Costs and Fees (Soft Costs)
Once it is determined whether zoning allows a certain type of
housing in an area, there are multiple processes to secure permission
to build. Land use approvals may be required, and building permits
are always required. The process of securing land use permits and
building permits and the costs of fees imposed on new development
add to the cost of building homes. It requires an enormous amount
of time for developers and contractors to prepare applications,
work with communities and city staff, and attend meetings and
hearings. The developer or project sponsor needs to have “control”
(ownership) of the land during that process and maintaining that
control through holding costs adds more to the expenses the longer
the approvals process takes.
Developers report lengthy project review, as well as a lack of
community support, as obstacles to development. The Edina
Housing Strategy Task Force found this to be the case in a number
of interviews it did with developers who have done or tried to do
housing projects in Edina.23 Extended review times increase risk and
holding costs, costs which the developer adds to the project, making
it more expensive to develop in Edina.
Every city has the ability to structure its development and
construction review process to be as efficient as possible, within
certain limits. Anything allowed “by right” complies with the zoning
code and does not require public notification or review. “By right”
reviews are administrative processes at the city level and have some
ability to be “fast tracked” if policy and staff capacity allow. Building
inspections and permitting are required for all projects and may
also be sped up or slowed depending on city policy and staffing. If
State inspections and permits are needed, the City has no ability to
influence how quickly these are completed.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 44
Proposed projects that require a “variance”, a Conditional
Use Permit or a Special Use Permit under City zoning
must provide public notice and review to comply with
State rules that dictate the minimum and maximum
number of days to complete them. Proposed housing
projects may also trigger reviews beyond zoning,
related to environmental conditions (soil, air, or water),
infrastructure improvements, or historic resources, to
name a few. These items have State mandated minimum
and maximum review days as well, to ensure that the
public and interested parties or agencies have adequate
time for review.
Cities like Edina can streamline some review processes
and waive or eliminate fees to lower housing project costs.
Common types of discretionary reviews and fees are
preliminary design review, permit fees, and impact fees.
Edina has reasonable impact and permit fees compared
to comparable Minnesota communities, so its focus for
should be on determining which development review
requirements support the policy goals of the Edina
Comprehensive Plan (such as housing affordability), and
which requirements undermine them.
Funding Sources for a 70-Unit, 100%
Affordable Development: $23,435,489
$206,000
$214,418
$316,500
$993,950
$500,000
$798,000
$888,634
$2,400,000
$5,787,000
$11,295,887
Tax Credit Equity First Mortgage Edina Deferred Loan
MN Housing Deferred Loan Edina TIF Pay-Go Note Hennepin Cnty HOME LoanMet Council LCDA & LHIA Sales Tax Rebate Deferred Developer Fee
Philanthropic
Figure 14: Funding sources for a recent affordable housing project. Source: City of Edina.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 45
5. Financing and Programs
Financing for rent and/ or income-restricted affordable housing is
distinct from market rate housing finance. Market rate projects are
financed through banks, developer collateral, and investors who rely
on operating revenues to pay the mortgage revenue and/or future
sale revenue earns a return on their initial investment.
The financing for affordable multi-family development comes from
three main sources:
»First mortgage debt - bank financing, bonds, FHA/ HUD
insured
»Equity - Generated by the sale of Low-Income Housing Tax
Credits
»Public Financing / Soft Debt - payable from surplus cash flow or
deferred and payable upon sale or refinance.
Due to the restricted rents, the property income is not sufficient to
leverage the bank debt needed to fully finance an affordable housing
development. Debt secures a mortgage that pays for 30%-70% of
the construction costs, depending on the level of affordability. The
remaining 30% and 70% of capital funds required to construct the
housing needs to come from other sources, primarily Low-Income
Housing Tax Credits and public financing. These sources are limited
and highly competitive.
Each state is allocated a certain amount in Low Income Housing Tax
Credits (LIHTC) under Section 42 of the IRS Revenue code based
on the state’s population. Minnesota Housing is the primary conduit
for distribution of the credits in Minnesota and is the designated
allocator of tax credits for developments in Edina. Therefore, to
obtain LIHTC a developer applies to Minnesota Housing through
a competitive application process. LIHTC are awarded based on a
pointing system, so certain criteria must be met as described in their
Qualified Allocation Plan. The proposed development with the most
points receives the tax credits.
Soft debt can come from a variety of sources including Minnesota
Housing, Hennepin County, Metropolitan Council, and the City
of Edina. Again, these sources are limited and awarded through
a competitive application process. The different funding agencies
have their own criteria, so a developer must know how to thread
the needle to secure funding from multiple sources. Local support
is a key criterion for obtaining awards of LIHTC and all public
subsidies. The City of Edina should be prepared to assist developers
seeking these sources by providing letters of support and facilitating
expedited reviews to control project costs when possible.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 46
6. Outreach, Communication and Dialogue
Like many cities across the nation and in the Twin Cities region,
Edina is growing. Growth can be positive in many ways, but there
are downsides as well. In either case, growth is a big change for a
community and by and large, people are apprehensive about change
and how it will impact them. In this way, Edina is experiencing
heightened sensitivity and public engagement from the community
regarding the change. In the 2019 Edina Quality of Life Survey,
respondents were asked how well, if at all, they felt the City does
at managing tensions in the community related to residential
redevelopment in Edina. Only about half of residents felt the City
manages tensions very or somewhat well, which was a decline from
2017 and 2015.24
In Edina today, recently formed grassroot citizen groups are
organizing and communicating around specific agendas in regard
to growth and the nature of development. These groups represent
different perspectives on growth, some in general support and some
in general opposition. The groups are increasingly sophisticated, with
websites, strong communication networks, visibility at city meetings
and hearings, and even registered as formal nonprofits with the State
of Minnesota. The increased skill and activity of engaged residents
amplifies areas of disagreement between citizens and challenges city
leadership and staff to lead and facilitate constructive and respectful
public dialogue. It also challenges citizens with different opinions
to hone their skills at talking with one another instead of to one
another.
What Shapes Housing in Edina?
Report from the City of Edina Housing Strategy Task Force | 47
4
Recommendations
Image courtesy of Urban Design Associates.
Report from the City of Edina Housing Strategy Task Force | 48
Chapter 4: Recommended Priorities for Edina Housing
Principles
The Edina Housing Strategy Task
Force has identified three Principles
as foundational to maintaining Edina’s
strength as a great residential community.
These Principles mirror three of the four
goal areas in Edina’s Comprehensive
Plan and serve as the basis for the
recommendations in this report.
SUPPLY AND GROWTH: Plan to
accommodate projected residential growth.
HOUSING CHOICE: Support the
development of a wide range of housing
options to meet the diverse needs and
preferences for the existing and future
Edina community.
AFFORDABILITY: Encourage the
development and maintenance of diverse
housing options affordable to residents at a
range of incomes and life stages.
Two Key Value Statements of the City of Edina
The work of this report is guided by the values
of the Edina community. Two key City of Edina
values are Equity and Community Engagement:
Equity
As the Edina City Council, we are dedicated
to creating an environment in our community
where residents have equitable opportunities to
participate in their city government and access
the City’s institutions, facilities, and services.
Our commitment to diversity, equity and
inclusion will be a continuous process of learning
and adapting to the multiple needs of all in
the community, while consistently applying an
equity lens in all decisions and interactions. Our
vision of a welcoming Edina includes removing
systemic and institutional barriers to create
opportunities for all in the community to thrive.
Community Engagement
As the Edina City Council, we are dedicated
to fostering an engaged community built
on a foundation of trust. We will do this by
intentionally focusing on equity, diversity and
inclusion and creating a dialogue of perspectives.
We will build trust by demonstrating our
engagement principles of Relationships, Equity,
Inclusivity, and Accountability.
»Relationships: make relationships
foundational; strengthen relationships and
build new ones; develop a trust between the
City and residents
»Equity: engage with residents where they are;
remove barriers for participation; provide
multiple options for participation
»Inclusivity: strive to provide meaningful
engagement opportunities; invite
underrepresented groups to participate;
make all feel welcomed and valued
»Accountability: plan; do what we say we are
going to do; do not change the rules; make
a decision; communicate how participation
influenced decision
Report from the City of Edina Housing Strategy Task Force | 49
Goals and Strategies
GOAL 1: PROMOTE LIFECYCLE HOUSING
Actively work to create lifecycle housing to support a range of
housing options that meet people’s preferences and circumstances
in all stages of life, such as renters, first-time homebuyers, empty
nesters, and seniors.
A) Promote Affordable and Attainable Housing
1) Prepare a housing implementation plan using a mix of tools to
achieve the City’s housing goals, including the Comprehensive
Plan goal range of 992 to 1,804 affordable units, in the ten-year
horizon, with time-bound goals and milestones, to be reviewed
on an annual basis.
2) Facilitate the development of “new” housing options such as
accessory dwelling units to accommodate the diverse needs of
people of different ages, household sizes, lifestyle, and incomes.
3) Attract new residents and retain existing residents by preserving
and expanding housing options for moderate- and low-income
households.
4) Promote affordable and workforce housing that includes a range
of housing prices and options, based on the principle that those
who contribute to the community should have the opportunity to
live here.
5) Explore directing for a limited period of time, the City’s portion
of the increased tax value of tear down properties to support
Affordable Housing.
B) Promote Missing Middle Housing Production
1) Support opportunities to accommodate Missing Middle housing
within the city, defined as range of multi-unit or clustered
housing types compatible in scale with single-family homes
C) Promote Special Needs Housing
1) Support a range of housing options for people with special needs
(Developmentally, Physically, or Mentally)
a) Families with a disabled member
b) Affordable housing for working households with a disabled
member
c) Assisted living for individuals with disabilities.
D) Encourage Preservation and Promotion of
Diverse Housing Stock
1) Assist neighborhoods in retaining starter housing stock that can
accommodate young families.
2) Encourage the preservation, maintenance, and rehabilitation of
existing subsidized and naturally occurring affordable rental and
ownership housing (NOAH)
3) Maintain some of Edina’s single-family, lower square footage
housing stock.
4) Support program(s) for assisting income eligible property owners
with rehabilitating their homes to extend their useful life.
5) Increase awareness about the range of housing variety that exists
in Edina.
Recommendations
Report from the City of Edina Housing Strategy Task Force | 50
GOAL 2: AMEND LAND USE REGULATIONS TO ENABLE
A MORE DIVERSE HOUSING MIX
A) Adjust Zoning Standards for Housing
1) Provide zoning flexibility in the specific areas identified for development in the
Comprehensive Plan to streamline the public approval process for minor variances.
2) Continue to allow teardowns/rebuilds but consider design guidelines and regulations
that prevent privacy invasion via window placement and infringement on both active
and passive solar energy capture.
3) Allow for creative solutions and some flexibility in the provision of off-street
parking standards for housing. This might include options like shared parking,
reduced minimums near transit and activity nodes, or exceptions to structured
parking requirements for affordable housing.
B) Consider Zoning District Amendments to Expand Housing
Options
1) Consider zoning amendments in limited areas (such as transitional areas and activity
nodes) and pursue zoning changes to encourage split lots to allow infill, to allow lot
splits for infill, single-family ownership housing, detached or attached (zero lot line),
on lots after splitting that are 50’ or wider (or 3,500 sf or larger).
2) Consider amending current R1 zoning to allow attached or detached Accessory
Dwelling Units (ADU) such as self-contained “mother-in-law units”. Develop Small
Area Plans for extending R2 zoning along Vernon Ave from 169 to Interlachen,
France Ave north of Hwy 62, and Valley View from 66th to Hwy 100. Evaluate
additional areas for R2 zoning.
3) Support the development and preservation of affordable housing throughout Edina
where there is access to transit.
Recommendations
Report from the City of Edina Housing Strategy Task Force | 51
GOAL 3: REDUCE BUILDING COSTS
A) Streamline the Approval Process for Housing
Developments Requiring a Variance or Subsidy
1) Fully empower the City’s Community Development Department
to identify properties for development or redevelopment,
analyze projects for both fit with the Comprehensive Plan
Design Guidelines and economic feasibility in prevailing market
conditions, balancing these two as needed. Communicate
development objectives to developers and encourage the
preparation of proposals for development.
2) Implement active outreach and recruit developers with a
successful track record in providing the housing desired
3) Empower the City’s Community Development Department to
guide developers through the project approval process.
4) Provide better guidelines for development requirements, based on
location and economic objectives.
5) Simplify the current project approval process. Limit discussion
to the variance or Comprehensive Plan amendment issues being
raised.
6) Conduct semi-annual project review meetings between Staff, City
Council and Planning Commission to discuss lessons learned,
gain alignment, and determine policy implications of projects
completed in the past six months.
7) Complete Post-mortem reviews of the current development
review process, paying particular attention to assessing the level
of quality of resulting developments. Identify what developments
have been delayed or have been negatively impacted by incurring
additional costs in the development process due to multiple levels
of approvals or ad hoc design and amenity requests.
8) Ensure that there is a robust system in place to identify the
evolving best practices for managing housing developments being
used by other communities. For example, Bloomington, St. Louis
Park, Brooklyn Center, or others.
B) Reduce the Cost of Building, Renovating and
Financing Quality Housing
1) Develop a parking policy that reflects the latest thinking for
current and future parking needs, parking construction costs,
sustainability and evolving economic and marketability needs for
successful projects.
2) If underground or covered parking is required, be willing to fund
it by Tax Increment Financing (TIF) or other means of subsidy.
3) Expand the HRA levy to generate funds that can be leveraged for
land acquisition, bridge loans and renovations.
4) Utilize land trusts and land write-downs to secure land for future
development projects.
5) Empower the City’s Affordable Housing Development Manager
to be responsible for establishing/evaluating the parking, design,
and amenity requirements for affordable housing developments
to ensure economic viability of these projects.
6) Empower the City’s Affordable Housing Development Manager
and the Director of Community Development to be responsible
for parking, design, and amenity requirements for housing
Recommendations
Report from the City of Edina Housing Strategy Task Force | 52
for seniors, people with disabilities and other housing market
segments with specific needs.
7) Authorize the City, through a public hearing process, to have
authority to make property purchases that are consistent with
a city development strategy, within a financial limit, to be able
to secure control of potential properties for affordable housing
development, in an expeditious manner.
8) Fully utilize the other options the city has to lower the cost of
development and or financing (i.e. rebate on fees, tax exempt
bond financing, upgrading to an Economic Development
Agency, selling land below market value, reduced property taxes,
etc.).
9) Explore directing City portion of increment of increased tax
value of tear down properties to Affordable Housing Trust Fund.
GOAL 4: ENCOURAGE SUSTAINABLE
DESIGN AND TECHNOLOGY IN ALL NEW
AND SUBSTANTIAL REHABILITATION
HOUSING
1) Encourage alternative energy sources including solar, wind, waste
material, and geothermal.
2) Promote active and passive energy efficiency in the design and
placement of buildings and trees and educate property owners
regarding weatherization and energy efficiency.
3) Require shadow studies on new or replacement housing
structures to ensure active and passive solar energy use by
adjacent properties is not adversely impacted.
4) Promote water conservation by homeowners and housing
property owners through education about wat er conserving
appliances and fixtures, and reusing wastewater.
5) Support mitigation of water runoff by encouraging use of rain
gardens, rain barrels, cisterns, permeable driveways and walkways,
and appropriate building and landscape design.
6) Frequently review housing codes and policies to incorporate
new technology regarding alternative energy sources, new energy
efficient building practices.
7) Promote new construction and substantial rehabilitation projects
to follow leading industry sustainability standards.
Solar panels on rooftop of home in the Morningside neighborhood. Photo
credit: Tom Koon.
Recommendations
Report from the City of Edina Housing Strategy Task Force | 53
Priorities for New Housing in Edina
The Task Force considered the results of the Maxfield study and the
Edina 2040 Comprehensive Plan to identify recommended housing
priorities for the City of Edina.
This Task Force acknowledges that adopted policy in the Edina 2040
Comprehensive Plan anticipates housing growth and is planning for
ways to accommodate it. The City of Edina should craft policies,
adjust regulations, and prioritize financing for housing that meets the
highest market need, and which the market may not deliver under
current city conditions.
A zero or tentative growth policy is not an option if Edina wishes to
maintain and sustain itself as a thriving and desirable community.
After extensive analysis and discussion, the Task Force decided to
recommend a minimum of 992 new affordable housing units to
Edina, based on the adopted 2040 Comprehensive Plan. In other
housing categories, the Task Force based its recommendation for
new units on the Maxfield Housing Market study, which identified
housing types where demand most exceeds the anticipated supply.
The top five Task Force recommended housing priorities are:
1) Add 992* affordable rental housing units
-80% affordable rental for general occupancy
-20% affordable rental for active seniors.
2) Add 900 market rate rental housing units for general
occupancy
3) Add 360 senior ‘independent living,’ congregate housing
units
4) Add 250 owned multi-family housing units
5) Add 200 senior ‘assisted living’ housing units
*Note: To meet the lower bound goal of 992 affordable housing
units, it would require approximately nine projects consisting of
100 apartments each - which is a typical size for affordable housing
projects. In addition to 92 additional apartments created through
Edina’s inclusionary housing policy, which mandates 10% of all new
multi-family units be affordable at 60% of Area Median Income.
To get built, all nine of these projects would have to be vetted
thoroughly to receive both city approvals and competitive awards
of subsidized financing. The Task Force understands that this is
a lofty goal and as such will require consistent effort by Edina’s
policymakers and city staff.
Recommendations
Report from the City of Edina Housing Strategy Task Force | 54
Concluding Highlights
RELATIONSHIP TO THE 2040 COMPREHENSIVE PLAN - The
Task Force acknowledged early on that the 2040 Comprehensive
Plan was developed with an impressive amount of community
engagement, debate, and input, both in aggregate and in each of
the Small Area Plans. Regarding housing, which is our charge, the
Comprehensive Plan provides clear guidance on overall quantity
needed, and where new development should happen. The Task
Force accepted and supports the population, housing unit and
affordable housing unit forecasts in the Comprehensive Plan. Our
charge was to provide more guidance on the amount of specific types
of housing needed for specific target audiences and recommend
goals and strategies to help ensure this housing gets built.
HOUSING DIVERSITY – The Task Force was focused on ensuring
that we addressed the full spectrum of housing needs. We strongly
believe that one of Edina’s strengths is that it has a wide variety and
distribution of housing types. We believe future housing should
continue to accommodate diverse housing in Edina while minimizing
the impact on our predominantly single-family neighborhoods. The
Task Force recognizes that the wide variety of homes available in
single family home neighborhoods has had an important role in
attracting families to Edina. We want to ensure that these single-
family home neighborhoods continue to be a part of the diversity
of housing that is a strength of Edina. Our recommended top
priorities for housing cover a wide variety of housing types, including
affordable, market rate, senior and multi-family. Our priorities are
intended to help guide the City in what types of projects it should
support. This report can give the incorrect impression that the Task
Force was focused on affordable housing. The report includes a
lot of information on affordable housing because while the market
will work to satisfy the demand for market rate housing, both new
and existing, it will not do that for new affordable housing. New
affordable housing is more challenging to produce. It usually requires
financial support and political leadership from the City. Our report
works to educate the reader on why we need new affordable housing,
the benefits of having it, and why it will not happen on its own.
COMMUNITY ENGAGEMENT –Covid-19 limited our ability to
get robust input from the community about our ideas, through either
large in person meetings, robust surveys or focus groups. The issues
we grappled with are being debated throughout the city and, like our
task force, there are widely disparate positions. We feel strongly that
when circumstances change, the City should ensure that it has robust
input from the community about the recommendations we have
made. This includes the recommendation we made about topics to
be included in the 2021 Quality of Life Survey.
SPIRITED DEBATE – This report is the culmination of spirited
debates among the Task Force members who held widely disparate
views on many of the topics we discussed. The task force used a
voting system that allowed everyone to state their level of support for
an idea, debate further if there was insufficient support for the idea,
and ultimately allow for majority rule on accepting or rejecting the
final shape of the idea.
CITY SUPPORT – The Task Force recognizes the City’s deep
commitment to open, informed debate of complex issues. This
is evident in the extensive public engagement used to prepare the
Comprehensive Plan, the subsequent formation of this public Task
Force, the extension of time to complete our work, the investment
in the Maxfield Study, and in Staff resources and consulting services
to support our work. We hope this report is a useful contribution to
what will be an important ongoing debate to ensure Edina continues
to be a healthy and thriving community.
Recommendations
Report from the City of Edina Housing Strategy Task Force | 55
Endnotes
1 https://stats.metc.state.mn.us/profile/detail.
aspx?c=02394621#genlanduse
2 Taylor, Lauren. “Housing and Health: An Overview of The
Literature” June 7, 2018. https://www.healthaffairs.org/
do/10.1377/hpb20180313.396577/full/
3 Definition from City of Lakes Community Land Trust. http://
www.clclt.org/
4 http://homeswithinreach.org/wp/
5 https://datausa.io/profile/geo/hennepin-county-mn/
6 “Workforce Housing Overview” National Association of
Realtors. https://www.nar.realtor/home_from_work.nsf/files/
PG%20Module%201.pdf/$FILE/PG%20Module%201.pdf
7 Taylor, Lauren. “Housing and Health: An Overview of The
Literature”
8 “The Effect of New Market-Rate Housing Construction
on the Low-Income Housing Market,” Upjohn Institute
working paper 19-307. https://research.upjohn.org/up_
workingpapers/307/
9 Family Housing Fund report, “Affordable Rental Housing
Does Not Reduce Property Values: Evidence from the
Twin Cities” 2014 (https://www.fhfund.org/wp-content/
uploads/2019/07/Property-Values-report-2014.pdf ; and
https://www.fhfund.org/wp-content/uploads/2019/07/
Summary-AH-Does-Not-Reduce-Property-Values_
Updated-11.24.14.pdf ]; and
Young, Cheryl. “There Doesn’t Go the Neighborhood: Low-
Income Housing Has No Impact on Nearby Home Values.”
November 16, 2016. https://www.trulia.com/research/low-
income-housing/
10 Cecchini, Alex. “No, Large Apartment Buildings Won’t
Devalue Your Home” February 7, 2016. https://streets.
mn/2016/02/07/no-large-apartment-buildings-wont-devalue-
your-home/ ; and
Damiano, Tony and Chris Frenier. “Build Baby Build?:
Housing Submarkets and the Effects of New Construction
on Existing Rents” University of Minnesota, Center for
Urban and Regional Affairs. October 16, 2020. https://www.
tonydamiano.com/project/new-con/bbb-wp.pdf ; and
“New Apartment Buildings in Low-Income Areas Decrease
Nearby Rents: Upjohn Institute. https://www.upjohn.org/
research-highlights/new-apartment-buildings-low-income-
areas-decrease-nearby-rents
11 “Is Supportive Housing Cost Effective?” Center for Supportive
Housing. https://d155kunxf1aozz.cloudfront.net/wp-
content/uploads/2018/06/Cost-Effectiveness-FAQ.pdf
12 “Zoning Laws. The First Amendment Encyclopedia.
September 2017. https://en.wikipedia.org/wiki/Zoning_in_
the_United_States ; https://oxfordre.com/americanhistory/
Endnotes
Report from the City of Edina Housing Strategy Task Force | 56
view/10.1093/acrefore/9780199329175.001.0001/acrefore-
9780199329175-e-209 ; and
https://mtsu.edu/first-amendment/article/28/zoning-laws ;
and
https://www.strongtowns.org/journal/2017/6/28/a-history-
of-zoning-in-three-acts-part-i ; and
https://www.bloomberg.com/news/articles/2012-06-19/the-
birth-of-zoning-codes-a-history ; and
https://en.wikipedia.org/wiki/Zoning_in_the_United_States
13 Silver, Christopher. “The Racial Origins of Zoning in
American Cities”. Arizona State University. 1997 http://www.
asu.edu/courses/aph294/total-readings/silver%20--%20
racialoriginsofzoning.pdf
14 “Exclusionary zoning”. Wikipedia https://en.wikipedia.org/
wiki/Exclusionary_zoning
15 City of Edina Quality of Life Surveys, https://www.edinamn.
gov/QuickLinks.aspx?CID=198
16 Maxfield Housing Market analysis for Edina. April 2020, page
231
17 Workforce Housing Overview presentation, National
Association of Realtors https://www.nar.realtor/home_from_
work.nsf/files/PG%20Module%201.pdf/$FILE/PG%20
Module%201.pdf
18 2018 data from Edina Public Schools ISD#273, presented by
Hazel Reinhardt, March 6, 2018
19 2018 data from Edina Public Schools ISD#273, presented by
Hazel Reinhardt, March 6, 2018
20 “Millennials and Silent Generation Drive Desire for Walkable
Communities, Say Realtors,” National Association of Realtors.
https://www.nar.realtor/sites/default/files/documents/2017-
community-preferences-survey-press-release-12-19-2017.pdf
21 Edina Comprehensive Plan Chapter 3, Land Use and
Community Design, p. 3-26.
22 Maxfield Housing Market Analysis for Edina. April 2020.
23 Members of the Edina Housing Strategy Task Force
interviewed a number or types of developers to learn their
perspectives on housing development in Edina, both market
rate and affordable.
24 “2019 Quality of Life Survey: Edina, Minnesota.” National
Research Center, May 2019. https://www.edinamn.gov/
DocumentCenter/View/6564/2019-Quality-of-Life-Survey-
PDF
Endnotes
Report from the City of Edina Housing Strategy Task Force | 57
Appendices
I. Getting from Here to There
II. Housing Definitions
III. Housing Affordability and Income Qualifications
IV. Regional Housing Need and Edina’s Role
V. List of Resources Used by the Task Force
VI. Responses to the Report
From the Human Rights and Relations Commission
and the Edina Housing Foundation
Report from the City of Edina Housing Strategy Task Force | 58
Appendix I - Getting from Here to There
Achieving the goals in this report requires a suite of policy, funding,
and program tools. The Edina 2040 Comprehensive Plan had a full
matrix of tools to advance housing projects in the city. It is found
in Chapter 4 - Housing, page 4-2-, Table 4-7. Below is a list of tools
available through the city.
Housing Tools
The following are housing programs offered through the City of
Edina to address housing needs of Edina residents, preserve and
improve the existing housing stock, provide for affordable housing,
provide for new housing products, provide for the safety and security
of residents residing in rental housing and ownership housing and
other strategies and initiatives to support ongoing stability and
enhancement of the City’s housing stock.
GENERAL OBLIGATION BONDS - Bonds have been used to
a limited degree by municipalities and counties to support the
development of affordable housing. Typically, the government
guarantees the bonds issued. This can create affordable housing,
usually affordable to households with incomes between 60% and
80% of AMI but is not prevalent in the market.
AFFORDABLE HOUSING TRUST FUND - An affordable housing
trust fund provides a source of funds to facilitate the housing
needs of low- and moderate-income individuals and families in
the city. The affordable housing trust fund shall be a permanent
endowment and continually renewable source of revenue to provide
loans and grants to for-profit and non-profit housing developers
for the acquisition, capital and soft costs necessary for the creation
of new affordable rental and owner-occupied housing, and for the
acquisition, rehabilitation and preservation of existing multi-family
residential rental housing including naturally occurring affordable
housing (NOAH). This fund is composed primarily of the “Buy-in”
fees developers may opt to pay in lieu of including affordable units
into their market rate developments.
TAX INCREMENT FINANCING - Tax Increment Financing has
been utilized in many communities throughout the Metro Area and
in Greater Minnesota to support the development of new housing,
primarily rental housing to reduce rental rates to bring them in line
with levels supportable in the market. The use of TIF to address
housing needs for very low-income households has not been used
extensively and typically does not provide sufficient gap funding to
create this type of housing.
RENTAL HOUSING LICENSING AND INSPECTION PROGRAM
- Edina only recently implemented a rental housing licensing and
inspection program. The rental housing licensing and inspection
program consists of inspecting all registered rental dwelling units,
including single-family homes, townhouses, condominiums, duplexes,
multi-family buildings, housing with services dwellings and accessory
dwelling units. The goal is to inspect a minimum of one-third of
all licensed rental units each year so that all rented units will be
inspected at least once every three years. The focus of the rental
inspection program is to maintain the quality and stability of rental
units, thereby preserving land and building values in the community.
Rental housing conditions that adversely affect the life, safety, and
general welfare of renters should be attended to for the well-being
Appendix I
Report from the City of Edina Housing Strategy Task Force | 59
of all residents and the improvement of housing conditions in the
community.
COME HOME2 EDINA - The City offers a low interest second
home mortgage intended to assist families and individuals looking for
affordable homeownership in Edina. The maximum loan amount is
25% of the purchase price and not to exceed $60,000. Borrower must
spend at least 25% of their gross income on the first mortgage (PITI,
etc.) and the program uses the interest rate of the first mortgage.
The purchase price of the property cannot exceed $425,000 and
the borrower shall not pay less than $1,000 towards down payment,
closing costs and/or prepaid expenses. The program has been
in place for 20 years. The program is funded through the Edina
Housing Foundation. The only area excluded from consideration is
the far southwest corner of Edina.
REDEVELOPMENT ACTIVITIES - The City has, in the past,
provided some assistance to various housing developments through
the use of TIF or other funding to support redevelopment.
Redevelopment activity has been focused on the Southdale area, the
Grandview area and 50th and France commercial district. Each of
these areas has experienced increased density and redevelopment
with owned and rental housing properties.
HOUSING IMPROVEMENT AREA (HIA) PROGRAM - The HIA
program is a financial tool for improvements in condominiums and
townhomes. This program was established by State law and can be a
tool through the municipality to assist condominium and townhome
developments that may have significant improvements to make to
common elements that they would otherwise be unable to finance. St.
Louis Park, Bloomington, Minneapolis, and Hopkins have all funded
various HIA owned multi-family projects through this program. We
do not believe that Edina has ever funded this type of loan for any
owned multi-family property in the city to date.
INCLUSIONARY HOUSING POLICY AND ZONING - The City
of Edina requires that multi-family properties seeking rezoning or
comprehensive plan amendments incorporate affordable housing
units at 10% affordable at 50% AMI or 20% affordable at 60% AMI.
Most new developments have opted for 10% affordable at 50% AMI
or have opted out of including affordable housing units by paying
a per unit fee of $100,000 for the required affordable units. Today’s
cost of constructing new housing units is upwards of $200,000 per
unit or higher. Therefore, requiring a per unit fee of $100,000 is less
than the cost to develop new affordable housing units. A total of 98
new affordable units have been developed or approved in the City
between 2015 and 2018. The plan has been expanded to include
developments on city owned land and projects seeking city financial
assistance. The affordability requirement has also been extended
from 15 years to 20 years. This is an effort to increase the number
of affordable housing units developed and to provide for more
affordable housing over the long-term.
Innovative Tools Enable Attainable Ownership
Options
Land use regulations can create new affordable housing tools with
less direct financial subsidies. Many cities are applying different
models, tailored to their local needs – some of which may exist in
Edina today. These approaches can be examined and if they seem
useful, they can be tailored to meet the unique circumstances and
needs of Edina.
Appendix I
Report from the City of Edina Housing Strategy Task Force | 60
»Several cities and counties around the country are using different ADU
program models tailored to local goals to add affordable housing.
»The nonprofit Hacienda Community Development Corporation is
developing a program that would build 537-square-foot cottages in the
backyards of low- to middle-income homeowners. They would provide
affordable housing for low-income tenants for 10 to 15 years. They are
specifically targeting lower-income homeowners to receive the ADUs and
building in a modest monthly income for the homeowner—maybe $200
out of a $990 per month rent payment.
»The City of Portland, partly in response to teardowns and out-of-
scale new buildings, recently passed innovative reforms that discourage
teardowns and encourage affordable homes. The Residential Infill Project
allows more housing units to be built in residential neighborhoods, but
only if they follow new limits on size and scale. An innovative aspect of
the proposal simultaneously lowers the maximum size of new homes
in low-density areas, allows buildings to contain more homes, and lets
a building be a little bit larger if it creates either more homes or very
affordable homes. It is a building size sliding scale, which encourages
affordable smaller homes that fit into the surrounding neighborhoods.
»Austin, Texas has an affordable housing bonus which allows more homes
on any lot in the city, but only if half of the homes are deeply affordable.
»In Denver, Colorado, Silvernest is a service that helps homeowners with
extra bedrooms and people looking for a bedroom to connect, create a
home-sharing lease, and collect rent.
Appendix I
Report from the City of Edina Housing Strategy Task Force | 61
Appendix II – Housing Definitions
These definitions came from a variety of sources, including the Maxfield report,
the Metropolitan Council, Wikipedia, the Urban Land Use Institute, Opticos,
and subject specific websites.
Accessory Dwelling Unit or Auxiliary Dwelling Unit (ADU) -
Secondary suites or in-law apartments are self-contained
apartments, cottages, or small residential units, that are located
on a property that has a separate main, single-family home,
duplex, or other residential unit. They may be inside the primary
residents or a smaller secondary structure on the same lot.
Affordable Housing - There is no single definition of “affordable
housing.” HUD defines a home as affordable if the household
that lives in it pays less than 30% of their income for housing.
Affordable housing may or may not be subsidized and it may or
may not have contractual limits on the rent or sales price. The
Metropolitan Council measures affordability using Area Median
Income (AMI). Low income affordability is defined at three
levels:
»Extremely low income (30% of AMI)
»Very low income (50% of AMI)
»Low income (80% of AMI)
Area Median Income - The Area Median Income (AMI) is the
midpoint of a region’s income distribution – half of families in
a region earn more than the median and half earn less than the
median. For housing policy, income thresholds are set relative
to the area median income—such as 50% of the area median
income—identify households eligible to live in income-restricted
housing units and the affordability of housing units to low-
income households.
Assisted Living - Assisted Living provides a semi-independent living
option for people with disabilities or adults who cannot or
choose not to live independently. There is no official definition
of an Assisted Living Facility, and they provide a wide range of
levels of care and diversity of services. It can range from basic
board and assistance with household chores, to medication
management and bathing assistance and limited Registered
Nurse support. They usually include common areas for
socializing. Living space may consist of independent apartments,
or hotel-like rooms.
Attainable Housing - Non-subsidized, for-sale housing that is
affordable to households with incomes between 80 and 120
percent of the area median income.
Building Permit - Building permits track housing starts and the
number of housing units authorized to be built by the local
governing authority. Most jurisdictions require building permits
for new construction, major renovations, as well as other
building improvements. Building permits ensure that all the
work meets applicable building and safety rules and is typically
required to be completed by a licensed professional. Once the
building is complete and meets the inspector’s satisfaction, the
jurisdiction will issue a “CO” or “Certificate of Occupancy.”
Building permits are a key barometer for the health of the
housing market and are often a leading indicator in the rest of
the economy as it has a major impact on consumer spending.
Appendix II
Report from the City of Edina Housing Strategy Task Force | 62
Community Land Trust - A community land trust (CLT) is a
nonprofit, community-based organization that works to provide
perpetually affordable homeownership opportunities. CLTs hold
the land they own “in trust” permanently for the benefit of the
community by ensuring that it will always remain affordable for
homebuyers. CLTs enter into a long-term, renewable lease with
prospective homeowners instead of a traditional sale.
Cooperative Housing - A legal ownership arrangement where
members own a share of the property (rather than an individual
unit) which often includes one or more multi-family buildings
or even a group of detached houses owned by the cooperative,
and where share owners are members and have rights to
occupy one housing unit. Some cooperatives are a “limited
equity cooperative.” A limited equity cooperative (LEC) is a
cooperative model in which residents commit to resell their
share at a price determined by formula—an arrangement that
maintains affordability at purchase and over the long term.
Cooperative share owners enjoy all the tax advantages of home
ownership regarding the deduction of interest and property
taxes under State and Federal tax law.
Co-Housing - A multi-family building or cluster of single-family
homes with separate living space for households that includes
communal areas such as gardens, kitchens, gathering spaces.
Demand – The total number of households that would potentially
move into a proposed new or renovated housing project or
community. Components vary and can include, but are not
limited to turnover, people living in substandard conditions, rent
over-burdened households, income-qualified households, and
age of householder. Demand is project specific.
Density – Number of units in a given area. Density is typically
measured in dwelling units (DU) per acre – the larger the
number of units permitted per acre the higher the density; the
fewer units permitted results in lower density.
Detached housing – a freestanding dwelling unit, most often single-
family homes, situated on its own lot.
Exclusionary Zoning - After explicit racial zoning that prohibited
people of a designated race from living in particular zones
was deemed illegal by the United States Supreme Court in
1917, many zoning codes were written to allow only expensive,
large homes on large lots. They prohibited less expensive
duplexes and small apartment homes. An explicit goal of many
exclusionary zoning policies was racial segregation. Now called
“exclusionary zoning,” these requirements ensure lower-income
people cannot afford the community.
Extremely low-income – person or household with incomes below
30% of Area Median Income, adjusted for respective household
size.
Fair Market Rent – Estimates established by HUD of the Gross
Rents needed to obtain modest rental units in acceptable
conditions in a specific geographic area. The amount of rental
income a given property would command if it were open for
leasing at any given moment and/or the amount derived based
on market conditions that is needed to pay gross monthly rent
at modest rental housing in a given area. This figure is used
as a basis for determining the payment standard amount used
to calculate the maximum monthly subsidy for families on
financially assisted housing.
Appendix II
Report from the City of Edina Housing Strategy Task Force | 63
Floor Area Ratio (FAR) – Ratio of the floor area of a building to the
area of the lot on which the building is located.
General Occupancy housing – All housing types, available for
purchase or rental by people of any age and ability level. The
term is used to differentiate from age-restricted housing for 55+
‘active adults’ and senior housing.
Holding costs (also known as Carrying Costs) – Costs or expenses
associated with owning or maintaining a property that an
individual or company incurs during a specified period of
time. Typical holding costs are Taxes, Insurance, Utilities,
Maintenance, Wear and Tear, Municipal Charges, and Interest on
income.
Household – All persons who occupy a housing unit, including
occupants of a single-family, one person living alone, two or
more families living together, or any other group of related or
unrelated persons who share living arrangements.
Household Trends – Changes in the number of households for any
particular area over a measurable period of time, which is a
function of hew households’ formations, changes in average
household size, and met migration.
Housing Stock - The total number of houses and apartments in a
geographic area.
Housing Unit – House, apartment, mobile home, or group of rooms
used as a separate living quarters by a single household.
Income limits – Maximum household income by a designed
geographic area, adjusted for household size and expressed as
a percentage of the Area Median Income, for the purpose of
establishing an upper limit for eligibility for a specific housing
program.
Infill - Development of vacant or under-used parcels, refurbishing
or reusing existing buildings in areas that are already largely
developed. It includes adding a little bit of density, such as
with Accessory Dwelling Units or by subdividing lots to build
additional single-family homes or duplexes.
Land Use Regulation - Laws or the application of laws that limit or
restrict how an owner or lessee can use or develop land. Zoning
and related governmental approvals to use or develop land are
the most common types of land use regulation.
Lifecycle housing - Ensuring there is a full range of housing options
for all stages of life, from starter homes through continuum of
care, so people can live their whole lives in a given community.
Low-Income – Person or household with gross household incomes
below 80% of Area Median Income, adjusted for household
size. [See Appendix III for income levels that qualify.]
Market analysis – The study of real estate market conditions for
a specific type of property, geographic area or proposed (re)
development.
Market rent – The rent that an apartment, without rent or income
restrictions or rent subsidies, would command in a given area or
“Market Area” considering its location, features and amenities.
Market study – A comprehensive study of a specific proposal
including a review of the housing market in a defined market
or geography. Project specific market studies are often used
by developers, property managers or government entities to
determine the appropriateness of a proposed development,
Appendix II
Report from the City of Edina Housing Strategy Task Force | 64
whereas market specific market studies are used to determine
what house needs, if any, existing within a specific geography.
Market rate rental housing – Housing that does not have any income-
restrictions. Some properties will have income guidelines, which
are minimum annual incomes required in order to reside at the
property.
Missing Middle - These housing types provide diverse housing
options, such as duplexes, fourplexes, cottage courts, and
multiplexes. These house-scale buildings fit seamlessly into
existing residential neighborhoods and support walkability,
locally serving retail, and public transportation options. They can
provide solutions along a spectrum of affordability. Some types
of missing middle housing are moderately larger than house-
scale and can transition between adjacent districts of different
levels of scale and intensity.
Moderate Income – Person or household with gross household
income between 80% and 120% (or 115% in Edina) of the Area
Median Income, adjusted for household size.
Mother-in-law unit - See Accessory Dwelling Unit.
Multi-family – Properties and structures that contain two or more
housing units.
Naturally Occurring Affordable Housing (NOAH) – NOAH
housing units happen to have affordable rents due to age of
structure, condition, location, or size. They were not developed
or designated with income guidelines or any governmental
or philanthropic subsidy. Because their lower costs occur for
reasons unrelated to subsidy, they are considered “naturally-
occurring” or “unsubsidized affordable” units.
Owned, multi-family housing – Two or more attached dwelling
units, each unit owned by its occupant(s), including townhomes,
condominiums, or cooperatives.
Owned, single-family housing – A single home, not attached to other
housing units, that is owned by the occupant(s).
Pent-up demand – A market in which there is a scarcity of supply
and as such, vacancy rates are very low or non-existent.
Population Trends – Changes in population levels for a specific
geographic area over a specific period– a function of the level
of births, deaths, and in/out migration.
Racially Restrictive Covenants - Covenants are clauses in property
deeds that restrict how a property may be used or who may
occupy the property. Racially Restrictive covenants prohibited
a buyer of real property from allowing sale, use or occupancy
by members of a given race, ethnic origin, and/or religion as
specified in the title deed. Such covenants were employed by
many real estate developers to “protect” entire subdivisions,
with the primary intent to keep “white” neighborhoods
“white.” Ninety percent of the housing projects built in the
years following World War II were racially restricted by such
covenants.
Redevelopment – The redesign, rehabilitation, or expansion of
existing properties.
Senior Housing – The term “senior housing” refers to any housing
development that is restricted to people age 55 or older.
Today, senior housing includes an entire spectrum of housing
alternatives. Senior housing is often classified into four
categories based on the level of support services. The four
Appendix II
Report from the City of Edina Housing Strategy Task Force | 65
categories are: Active Adult, Independent Living, Assisted Living
and Memory Care.
Single-family home – A dwelling unit, either attached or detached,
designed for use by one household and with direct street access.
It does not share heating facilities or other essential electrical,
mechanical, or building facilities with another dwelling.
Single-family attached home – a side by side duplex, semi-detached
unit or two-unit townhouse. May look like one large home, two
distinct homes, or a townhome.
Subsidized housing – Housing that is income-restricted to
households earning at or below a specific % of AMI. Some
programs may set a specific rent where households may qualify
based on 30% or less of AMI.
Subsidy – Public entities provide subsidy to housing developments
or individuals to achieve a variety of public goals. The most
common subsidy programs include:
»Low Income Housing Tax Credits (LIHTC) or Section 42
»Tax Increment Financing (TIF)
»Housing Choice Vouchers (Section 8)
»Other state or Federal rental assistance programs
»HUD Project-based Section 8
»HUD Section 202
»HUD Section 811
»HUD Section 236
Teardown - Demolishing a structure for the purpose of building a
new structure. Most common in communities that have limited
vacant land.
Tenant – One who rents real property from another individual or
rental company.
Transition zone - The area where land use shifts from one type
of use to another, generally between areas with commercial
buildings and residential buildings. They are characterized
by a gradual shift from larger buildings to smaller buildings,
which enable the provision of several housing types in a small
geographic area.
Workforce housing – Housing that is income-restricted to
households earning between 80% and 120% AMI. Also referred
to as moderate-income housing.
Zoning – Classification and regulation of land use by local
governments according to use categories (zones); often also
includes density designations and limitations
Appendix II
Report from the City of Edina Housing Strategy Task Force | 66
Appendix III - Housing Affordability and Income
Qualifications
In 2020, the area median income (AMI) for a household of four in the Twin Cities 7-County metropolitan area was $103,400. Area Median
Income is the basis for calculations of housing affordability. Based on the 2020 AMI, affordability levels for rental and ownership housing have
been calculated. [https://metrocouncil.org/Communities/Services/Livable-Communities-Grants/Ownership-and-Rent-Affordability-Limits.
aspx#History]
Based on an Area Median Income (AMI) of $103,400
»80% AMI = $78,500
»60% AMI = $62,040
»50% AMI = $51,700
»30% AMI = $31,000
Rental Housing Affordability
Rents include tenant-paid utilities. Tenant-paid utilities are included in the rent value because all housing costs should be included to determine
affordability, rather than just rent alone.
2020 Rental Housing
# Bedrooms 30% AMI 50% AMI 60% AMI 80% AMI
Efficiency $543 $905 $1,086 $1,448
1 Bedroom $582 $970 $1,164 $1,552
2 Bedrooms $697 $1,163 $1,395 $1,860
3 Bedrooms $806 $1,344 $1,612 $2,150
4 Bedroom $900 $1,500 $1,800 $2,400
Appendix III
Report from the City of Edina Housing Strategy Task Force | 67
Ownership Housing Affordability
For owner-occupied housing, the income limit includes principal,
interest, property taxes and home insurance.
Assumptions include:
»Fixed-interest, 30-year home loan
»Interest rate of 3.625%
»A 29% housing debt-to-household income ratio
»A 3.5% down payment
»A property tax rate of 1.25% of the property sales price
»Mortgage insurance at 0.85% of unpaid principal
»$100/month for hazard insurance
2020 Home Ownership
Household Income Level Affordable Home Price
80% AMI ($78,500) $293,500*
60% AMI ($62,040) $228,500
50% AMI ($51,700) $187,500
30% AMI ($31,000) $106,000
*Applying an interest rate of 3.625% on a 30-year fixed-rate home
loan for 2020 and other standard mortgage assumptions listed above
to the 80% of AMI amount for a family of four ($78,500), yields an
affordable purchase price of $293,500.
Appendix III
Report from the City of Edina Housing Strategy Task Force | 68
Appendix IV - Regional Housing Need and Edina’s Role
The Metropolitan Council determines the allocation of affordable
housing need for each community in the Twin Cities region. The
explanation below is provided by the Metropolitan Council on its
website at https://metrocouncil.org/housing/planning/Affordable-
Housing-Measures/Allocation-of-Affordable-Housing-NEED.aspx
ALLOCATION OF AFFORDABLE HOUSING
NEED
Planning for the growing need for affordable housing
The Council forecasts future affordable housing needs using a
regional economic model, then allocates a share of the overall need
to all communities expecting sewer-serviced household growth over
the next decade. Cities are not required to create enough units to
meet their share of the NEED, but they must plan for the possibility
of these units by guiding sufficient land at higher residential densities.
The NEED number is calculated every 10 years in preparation
of a community’s comprehensive plan update—therefore it only
applies to the upcoming decade, not the full 30-year scope of their
comprehensive plan.
How the Metropolitan Council calculates the NEED
The methodology for calculating a community’s share of the regional
need is revisited and updated every 10-year cycle. The 2021-2030
NEED is proportional to a city’s
»overall forecasted growth;
»its existing affordable housing stock; and
»the ratio of low-wage jobs to low-wage earning residents.
Changes in a community’s forecasted growth may result in changes
to their NEED number. Housing information—including NEED
numbers—for each city and township is available in Local Planning
Handbook’s Community Pages
The Region’s Total Need for Affordable Housing for 2021- - 2030 is 37,900
units. Edina’s 2021-2030 Allocation of Need is 1,804 units.
~ Metropolitan Council Community Page for Edina at https://lphonline.
metc.state.mn.us/CommPage?ctu=2394621&applicant=Edina
Appendix IV
Report from the City of Edina Housing Strategy Task Force | 69
Appendix V - References and Sources
This appendix identifies references in the report and resources
considered by the Task Force in preparing its recommendations.
Guest speakers at Housing Task Force
meetings
»Tara Beard, Livable Communities Manager, Metropolitan Council
»Mary Bujold, President, Maxfield Research and Consulting
»Kevin Ehrman-Solberg, Co-Founder, Mapping Prejudice
»Todd Graham, Principal Forecaster, Metropolitan Council
»Heidi Lee, Race and Equity Coordinator, City of Edina
»Mary Manderfeld, Director of Equity and Enrollment, Edina
Public Schools
»John Phelan, Economist, Center for the American Experiment
»Matt Schroeder, Senior Researcher, Metropolitan Council
»Lori Syverson, President, Edina Chamber of Commerce
»Cary Teague, Community Development Director, City of Edina
Interviews with subject matter experts
Members of the Task Force interviewed 19 subject matter experts
to gain a deeper understanding of the housing development process,
market opportunities and challenges, and the interaction of housing
with other systems, such as the school district. Those interviewed
included:
»developers of affordable, market-rate and senior housing
»architects
»staff from the Edina school district
»housing and development professionals from nearby cities
Appendix V
Report from the City of Edina Housing Strategy Task Force | 70
Bibliography – Reports, Article and Studies Reviewed
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Coalition. 28 February 2019.
“2019 Quality of Life Survey: Edina, Minnesota.” National Research
Center, May 2019. https://www.edinamn.gov/DocumentCenter/
View/6564/2019-Quality-of-Life-Survey-PDF
“2040 Comprehensive Plan,” City of Edina.
“A Roof of One’s Own.” The Economist, 16 January 2020. pp. 10.
“Addendum to the 2014 Regional AI.” Fair Housing Implementation
Council, May 2017.
“Affordable Rental Housing Does Not Reduce Property Values:
Evidence from the Twin Cities,” Family Housing Fund, 2014 https://
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report-2014.pdf
“Affordable Rental Housing Does Not Reduce Property Values:
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housing-does-not-reduce-property-values/
“An Update Analysis of the Relationship Between Affordable Family
Rental Housing and Home Values in the Twin Cities.” Maxfield
Research Inc Reports prepared for the Family Housing Fund. May
2014.
Aurand, Andrew and et al. “The Gap: A Shortage of Affordable
Homes.” National Low-Income Housing Coalition, March 2018.
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Becker, Carol. “Editorial Counterpoint: So Let’s Talk About What
‘Density’ Really Is. Startribune.com. 17 September 2019.
Bower, Susan. State Demographer Presentation on Growth of Racial
and Cultural Diversity in Minnesota. 8 February 2019.
Britschgi, Christian. “Audit Finds Cost of Building Supportive
housing in L.A. Exceeds Median Price of Market-Rate Condo.”
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Buchta, Jim. “In Maple Grove and Plymouth, a New Kind of
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Report Blames Housing Policies – and Educational Reforms.”
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Cecchini, Alex. “No, Large Apartment Buildings Won’t Devalue
Your Home.” https://streets.mn/, 7 February 2016.
Charles, J. Brian. “Will Up-Zoning Make Housing More Affordable?”
governing.com/templates/gov_print_article?id511415102, July 2019.
“City of Bellevue Affordable Housing Strategy.” 5 June 2017.
City of Bellevue Comprehensive Plan, pp. 77-97.
Appendix V
Report from the City of Edina Housing Strategy Task Force | 71
“City of Manhattan Beach: Housing Element 2013-2021.” February
2014.
Community Profile for the City of Edina. Metropolitan
Council, 2020 https://stats.metc.state.mn.us/profile/detail.
aspx?c=02394621#genlanduse
“Comprehensive Housing Market Analysis for the City of Edina,
Minnesota,” Maxfield Research and Consulting. April 2020.
https://www.edinamn.gov/DocumentCenter/View/8488/Edina-
Comprehensive-Housing-Market-Analysis-PDF
Corporation for Supportive housing. “FAQ’s about Supportive
Housing Research: Is Supportive housing Cost Effective?” https://
d155kunxf1aozz.cloudfront.net/wp-content/uploads/2018/06/
Cost-Effectiveness-FAQ.pdf - June 2018.
Damiano, Anthony, and Chris Frenier. “Build Baby Build?: Housing
Submarkets and the Effects of New Construction on Existing
Rents.” Center for Urban and Regional Affairs Working Paper,
https://www.tonydamiano.com/project/new-con/bbb-wp.pdf , 16
October 2020.
“Data USA: Hennepin County, MN.” Hennepin County 2020.
https://datausa.io/profile/geo/hennepin-county-mn/
Desilver, Drew. “The Biggest US Tax Breaks.” Pew Research Center,
6 April 2016. “Finding a Frame for Affordable Housing.” The
FrameWorks Institute in Partnership with Enterprise Community
Partners, October 2018.
Erickson, Amanda. “The Birth of Zoning Codes, a History: Or,
How Americans Learned to Legislate Our NIMBY Impulses.”
Bloomberg City Lab, 19 June 2012.
“The Effect of New Market-Rate Housing Construction on the Low-
Income Housing Market,” Upjohn Institute working paper 19-307,
https://research.upjohn.org/up_workingpapers/307/
“Exclusionary Zoning.” https://en.wikipedia.org/wiki/Exclusionary_
zoning
“Fact of the Week: Projected Mortgage Interest Deduction (MID)
Tax Expenditure vs. HUD Budget (2015-2021).” nlihc.org/
resource/, 30 April 2019.
Family Housing Fund. “Housing and Economic Growth in the Twin
Cities Region.” May 2019.
Fischer, Will, and Barbara Sard. “Chart Book: Federal Housing
Spending is Poorly Matched to Need: Tilt Towards Well-Off
Homeowners Leaves Struggling Low-Income Renters Without Help.”
Center on Budget and Policy Priorities, 8 March 2017.
Florida, Richard. “The US Spends Far More on Homeowner
Subsidies Than it Does on Affordable Housing.” citylab.com/
equity/2015/04, 17 April 2015.
Gardner, Spencer. “A History of Zoning in Three Acts – Part 1.”
Strong Towns, 28 June 2017.
Gladwell, Malcolm. “Million-Dollar Murray: Why Problems Like
Homelessness May Be Easier to Solve Than to Manage.” The New
Yorker, 12 February 2006.
“Great Southdale District Plan.” 18 December2018.
Hennepin County housing and income data and information.
https://datausa.io/profile/geo/hennepin-county-mn#housing
Appendix V
Report from the City of Edina Housing Strategy Task Force | 72
Herriges, Daniel. “When Apartment Dwellers Subsidize Suburban
Homeowners.” Strongtowns.org/journal/2020/4/17. Accessed 17
April 2020.
“Housing and Economic Growth in the Twin Cities Region.” Family
Housing Fund. May 2019.
“Housing is at the Root of Many of the Rich World’s Problems” The
Economist, 16 January 2020.
“Housing: Just Build. The Economy and the People Both Will
Benefit.” The Economist, 17 January 2020.
“Housing Succession Plan for Edina’s Future.” Edina Housing Task
Force, October 2006.
“How Housing Became the World’s Biggest Asset Class.” The
Economist, 16 January 2020.
“Interview: Enrico Moretti.” Econ Focus, First Quarter 2019. Pp.
18-23.
Kaul, Greta. “Why It’s So Expensive to Build a House in Minnesota
Right Now,” Minn Post, 3 May 2019. https://www.minnpost.com/
economy/2019/05/why-its-so-expensive-to-build-a-house-in-
minnesota-right-now/
“Key Trends in Housing.” Minnesota Housing, January 2018.
Margolies, Jane. “All-Electric’ Movement Picks Up Speed, Catching
Some Off Guard.” https://www.nytimes.com/2020/02/04/
business/all-electric-green-development.html , 9 February 2020.
Mast, Evan, and Brian Asquith. “New Apartment Buildings in
Low-income Areas Decrease Rents.”75th W.E. Upjohn Institute
for Employment Research, https://www.upjohn.org/research-
highlights/new-apartment-buildings-low-income-areas-decrease-
nearby-rents , 19 December2019.
“Millenials and Silent Generation Drive Desire for Walkable
Communities, Say Realtors.” National Association of Realtors.
December19, 2017. https://www.nar.realtor/sites/default/
files/documents/2017-community-preferences-survey-press-
release-12-19-2017.pdf
“Market Watch: Hennepin County – Trends in the Unsubsidized
Multifamily Rental Market.” Minnesota Housing Partnership,
October 2019.
Maxfield Housing Market Study – See “Comprehensive Housing
Market Analysis for the City of Edina, Minnesota,” Maxfield
Research and Consulting, April 2020.
Metropolitan Council Allocation of Affordable Housing Need,
https://metrocouncil.org/Housing/Planning/Affordable-Housing-
Measures/Allocation-of-Affordable-Housing-NEED.aspx
“Missing Middle Housing: Responding to the Demand for Walkable
Urban Living.” Presentation by Opticos Design, Inc., 2015.
“More Places to Call Home: Investing in Minnesota’s Future.”
Report of the Governor’s Task Force on Housing, August. 2018.
National Association of Realtors. “Workforce Housing Overview,”
https://www.nar.realtor/home_from_work.nsf/files/PG%20
Module%201.pdf/$FILE/PG%20Module%201.pdf
Norton, Gabriela. “State of the State’s Housing 2019: Biennial
Report of the Minnesota Housing Partnership.” Minnesota Housing
Partnership, 2019.
Appendix V
Report from the City of Edina Housing Strategy Task Force | 73
Novogradac, Michael. “Once Again, Homeownership Gets Far More
Tax Subsidies Than Rental Housing.” Novogradac Journal of Tax
Credits, Volume IX, Issue VII, July 2018.
Phaneuf, Taryn. “Homebuilders Want to Tackle Affordability by
Cutting Building Permit Fees. City Leaders Say it Won’t Help.”
Bizjournals.com/twincities/news/2019/09/13 .
“Piecing it Together: A Framing Playbook for Affordable Housing
Advocates.” The FrameWorks Institute in Partnership with
Enterprise Community Partners, 2018.
Prevost, Lisa. “Seven Ways Telecommuting Has Changed Real
Estate.” nytimes.com/2019/09/20/realestate/.
“Race & Equity Initiative: Final Report & Recommendations Version
2.0.” Edina Race and Equity Task Force, 26 June 2018.
“Rebuilding.” The Economist, 16 January 2020. pp. 12.
“San Francisco Housing Needs and Trends Report: Executive
Summary.” San Francisco Planning, July 2018.
Schuetz, Jenny. “Under US Housing Policies, Homeowners Mostly
Win, While Renters Mostly Lose.” brookings.edu/research/, 10 July
2018.
Schuetz, Jenny. “Who’s to Blame for High Housing Costs? It’s
More Complicated Than You Think.” Brookings.edu/research/. 17
January 2020.
Silver, Christopher. “The Racial Origins of Zoning in American
Cities.” From: Manning Thomas, June and Marsha Ritzdorf eds.
Urban Planning and the African American Community: In the
Shadows. Thousand Oaks, CA: Sage Publications, 1997. https://
us.sagepub.com/en-us/nam/node/41442/print
Silver, Christopher. “Zoning in the 20th-Century American
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Taylor, Lauren. “Housing and Health: An Overview of The
Literature.” 7 June 2018. https://www.healthaffairs.org/do/ 10.1377/
hpb20180313.396577/full/
“The Effect of New Market-Rate Housing Construction on the Low-
Income Housing Market.” Upjohn Institute working paper, https://
research.upjohn.org/up_workingpapers/307/ , 1 July 2019, pp. 19-
307.
Thomas, Julie Manning, and Marsha Ritzdorf. Urban Planning and
the African American Community: In The Shadows. December 1996
https://us.sagepub.com/en-us/nam/node/41442/print
“Tool: By-Right Development: The Housing Affordability Toolkit.”
pp. 63-73. National Multifamily Housing Council.
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September 2019.
“Vision Edina: City of Edina Strategic Vision and Framework.” City
of Edina. May 2015.
Wallace, Jennifer Breheny. “Students in High-Achieving Schools Are
Now Names an ‘At-Risk’ Group, Study Says.” washingtonpost.com/
lifestyle/2019/09/26.
Appendix V
Report from the City of Edina Housing Strategy Task Force | 74
“Why Are the Twin Cities So Segregated?” Institute on Metropolitan
Opportunity, University of Minnesota Law School. February 2015.
Wiener, Scott, and Daniel Kammen. “Why Housing Policy Is Climate
Policy.” nytimes.com/2019/03/25/opinion.
“Working Doesn’t Always Pay for a Home.” Family Housing Fund,
October 2018.
Young, Cheryl. “There Doesn’t Go the Neighborhood: Low-Income
Housing Has No Impact on Nearby Home Values.” Trulia, 16
November 2016.
“Zoning in the United States.” Wikipedia, https://en.wikipedia.org/
wiki/Zoning_in_the_United_States .
“Zoning Laws.” The First Amendment Encyclopedia. September
2017. https://oxfordre.com/americanhistory/view/10.1093/
acrefore/9780199329175.001.0001/acrefore-9780199329175-e-209
Appendix V
Report from the City of Edina Housing Strategy Task Force | 75
Appendix VI - Responses to the Report
1: From the Human Rights and Relations Commission
Email message from Cat Beringer, Chair of the Edina Human
Rights and Relations Commission
From: Cat Beringer <cat.beringer@gmail.com>
Sent: Thursday, December 3, 2020 4:53 PM
To: Stephanie Hawkinson <SHawkinson@EdinaMN.gov>; Heidi
Lee <HLee@EdinaMN.gov>; Mark Felton <markfeltoncpa@
feltonforensics.com>
Subject: Housing Task Force Report comments
Hi Heidi and Stephanie,
I really appreciated how much depth went into compiling this report,
including Edina’s history. However, I do have some concerns about a
few phrases in the document.
1. I would like to suggest that the word unfounded be added to this
sentence:
p. 30 Citing unfounded concerns about crime and property value
declines from white buyers, some housing developers added clauses
to property deeds that included racially restrictive covenants.
I think it’s important to state that these concerns about crime
and property values were unfounded and not based in fact. These
“concerns about crime and property values” were unfounded
complaints used to conceal the true purpose of these covenants. The
segregatory effects of these housing policies were not a fluke, they
were the point. To allow this sentence to stand is to be complicit with
these housing policies.
TPT’s Jim Crow of the North.
https://www.tpt.org/minnesota-experience/video/jim-crow-of-the-
north-stijws/
and this article
https://www.npr.org/2017/05/03/526655831/a-forgotten-history-
of-how-the-u-s-government-segregated-america
https://www.nytimes.com/2017/08/24/upshot/how-redlinings-
racist-effects-lasted-for-decades.html
2. p.31 Understanding the history of exclusionary housing policy
helps people recognize housing regulations that may reinforce
patterns of income exclusion. It is a matter of personal opinion
whether active zoning measures should be taken to reduce the
income segregation created by past housing policies.
The two sentences above seem to be in direct contradiction with each
other. The second sentence should maybe be removed or rephrased.
Otherwise, it gives the impression that the city is okay with income
segregation in housing. The phrase “personal opinion” especially
Appendix VI
Report from the City of Edina Housing Strategy Task Force | 76
seems to imply a certain level of absence of culpability, as the entire
point is that housing policy helped to create the problem, and it
cannot be fixed without further housing policy.
3. I would like to reiterate my concerns about affordable housing that
can accomodate families. Although, I think it is too late to be added
to the discussion about housing for this report, I would like the city
to be more aware of the lack of affordable housing beyond studio,
one bedroom, or two bedroom apartments. I think the commonly
used industry term “multifamily housing” is misleading when you
are describing households and not families. And, although a two
bedroom apartment could conceivably accomodate a family of four,
leasing agreements may not allow a family of that size.
Overall, I really appreciate the comprehensive work of the task force
and their attempt to cover such a broad range of topics while trying
to give voice to many different perspectives.
Thanks,
Cat Beringer
Chair HRRC
Reply message from Mark Felton
From: Mark Felton <markfeltoncpa@feltonforensics.com>
Sent: Thursday, December 3, 2020 6:55:23 PM
To: Cat Beringer <cat.beringer@gmail.com>
Cc: Stephanie Hawkinson <SHawkinson@EdinaMN.gov>; Heidi
Lee <HLee@EdinaMN.gov>
Subject: Re: Housing Task Force Report comments
Hello Everyone:
I support and concur with Chair Beringer’s comments and concerns.
I am very comfortable letting her letter represent my concerns as a
member of the HRRC and as an Edina resident.
Best regards,
Mark Felton
Appendix VI
Report from the City of Edina Housing Strategy Task Force | 77
2: From the
Edina Housing
Foundation
Appendix VI
Report from the City of Edina Housing Strategy Task Force | 78
Appendix VI
For more information about City of Edina
housing initiatives, please contact the
Planning Department, 952-826-0369.
Planning Department
Edina City Hall
4801 W. 50th St.
Edina, MN 55424
December 10, 2020
Chairs and Commissioners of the Edina Housing and Redevelopment Authority
Stephanie Hawkinson, Affordable Housing Development Manager
Housing Strategy Task Force Report
Information / Background:
In April 2019, the City Council approved the creation of a Housing Strategy Task Force to support
the City’s development of a comprehensive housing strategy. The charge was to:
• Review the current state of housing options in Edina.
• Recommend an optimal composition of housing options to the City Council to ensure the
long-term fiscal and social health and viability of the community.
• Propose a strategy to the City Council that seeks to achieve that optimal composition.
The charge in its entirety is included as an appendix.
Out of an applicant pool of over 50 individuals, The City Council selected seven members:
• Dan Hunt - Co-Chair
• Bernadette Hornig – Co-Chair
• Joe Burke
• Janet Kitui
• Tom Koon
• Norm Siekman
• Feroza Mehta (June 2019 – Nov. 2019)
• Steve Brown (Jan. 2020 – Dec. 2020)
The Task Force Report (“Report”) is included with this staff report, therefore the purpose of this
staff report is to outline some of the challenges faced both internally and externally, the methods
used to reach agreement, and present next steps.
STAFF REPORT Page 2
Staff Perspective
Due to the variety of perspectives and philosophies within the Task Force, there were challenges
agreeing on the purpose of the Task Force and later agreeing to the final product. Nonetheless,
the Task Force was incredibly committed to the topic and worked hard to form a report
considering all perspectives.
Timeline & Vision
The first timeline had the Task Force providing the Report to Council in December of 2019. The
disparate Task Force perspectives was a driving factor to realign the timeline to December of 2020.
The Task Force wanted more time to educate themselves on housing issues from technical experts.
The Report: Advancing Housing Priorities in Edina
As stated in the opening paragraph “The City of Edina is healthy and thriving. It has and continues
to be one of the most sought after communities in the Twin Cities for people who want to live
near strong schools, lovely neighborhoods, amenities like parks, convenient access to both
downtowns and a high quality of life.” One of the downsides of being a sought-after place to live is
that people will pay more to be able to live in Edina and thereby drive up the housing costs. As
housing prices in Edina continue to rise, fewer people can make a home here; Edina is increasingly
out of financial reach for households with low or moderate incomes. This creates tension between
preserving the City that residents love and adapting to changing demographics and needs.
Fortunately, preserving the City’s high standards does not need to equate with making the City
stagnant. A healthy, vibrant City has a diversity of incomes and people, and is adaptable to change.
The Task Force was asked to find a balance between keeping Edina as its been in the past and
making room for change.
Goals and Strategies
1. Goal 1: Promote Lifecycle Housing
a. Promote Affordable and Attainable Housing.
i. Prepare a housing implementation plan using a mix of tools to achieve the
City’s housing goals, including the Comprehensive Plan goal range of 992 to
1,804 affordable units, in the ten-year horizon, with time-bound goals and
milestones, to be reviewed on an annual basis.
ii. Facilitate the development of “new” housing options such accessory dwelling
units to accommodate the diverse needs of people of different ages,
household sizes, lifestyle and incomes.
iii. Attract new residents and retain existing residents by preserving and
expanding housing options for moderate- and low-income households.
iv. Promote affordable and workforce housing that includes a range of housing
prices and options, based on the principle that those who contribute to the
community should have the opportunity to live here.
v. Explore directing for a limited period of time, the City’s portion of the
increased tax value of tear down properties to support Affordable Housing.
b. Promote Missing Middle Housing Production.
i. Support opportunities to accommodate Missing Middle housing within the
city, defined as range of multi-unit or clustered housing types compatible in
scale with single-family homes.
c. Promote Special Needs Housing.
STAFF REPORT Page 3
i. Support a range of housing options for people with special needs
(Developmentally, Physically, or Mentally)
1) Families with a disabled member
2) Affordable housing for working households with a disabled
member
3) Assisted living for individuals with disabilities.
d. Encourage Preservation and Promotion of Diverse Housing Stock.
i. Assist neighborhoods in retaining starter housing stock that can
accommodate young families.
ii. Encourage the preservation, maintenance and rehabilitation of existing
subsidized and naturally occurring affordable rental and ownership housing
(NOAH).
iii. Maintain some of Edina’s single-family, lower square footage housing stock.
iv. Support program(s) for assisting income eligible property owners with
rehabilitating their homes to extend their useful life.
v. Increase awareness about the range of housing variety that exists in Edina.
2. Goal 2: Amend Land Use Regulations to Enable a More Diverse housing Mix.
a. Adjust Zoning Standards for Housing.
i. Provide zoning flexibility in the specific areas identified for development in
the Comprehensive Plan to streamline the public approval process for minor
variances.
ii. Continue to allow teardowns/rebuilds but consider design guidelines and
regulations that prevent privacy invasion via window placement and
infringement on both active and passive solar energy capture.
iii. Allow for creative solutions and some flexibility in the provision of off-street
parking standards for housing. This might include options like shared parking,
reduced minimums near transit and activity nodes, or exceptions to
structured parking requirements for affordable housing.
b. Consider Zoning District Amendments to Expand Housing Options.
i. Consider zoning amendments in limited areas (such as transitional areas and
activity nodes) and pursue zoning changes to encourage split lots to allow
infill, to allow lot splits for infill, single-family ownership housing, detached or
attached (zero lot line), on lots after splitting that are 50’ or wider (or 3,500
sf or larger).
ii. Consider amending current R1 zoning to allow attached or detached
Accessory Dwelling Units (ADU) such as self-contained "mother-in-law
units". Develop Small Area Plans for extending R2 zoning along Vernon Ave
from 169 to Interlachen, France Ave north of Hwy 62, and Valley View from
66th to Hwy 100. Evaluate additional areas for R2 zoning.
iii. Support the development and preservation of affordable housing throughout
Edina where there is access to transit.
3. Goal 3: Reduce Building Costs.
a. Streamline the Approval Process for housing Development requiring a Variance or
Subsidy.
STAFF REPORT Page 4
i. Fully empower the City’s Community Development Department to identify
properties for development or redevelopment, analyze projects for both fit
with the Comprehensive Plan Design Guidelines and economic feasibility in
prevailing market conditions, balancing these two as needed. Communicate
development objectives to developers and encourage the preparation of
proposals for development.
ii. Implement active outreach and recruit developers with a successful track
record in providing the housing desired.
iii. Empower the City’s Community Development Department to guide
developers through the project approval process.
iv. Provide better guidelines for development requirements, based on location
and economic objectives.
v. Simplify the current project approval process. Limit discussion to the
variance or Comprehensive Plan amendment issues being raised.
vi. Conduct semi-annual project review meetings between Staff, City Council
and Planning Commission to discuss lessons learned, gain alignment, and
determine policy implications of projects completed in the past six months.
vii. Complete Post-mortem reviews of the current development review process,
paying particular attention to assessing the level of quality of resulting
developments. Identify what developments have been delayed or have been
negatively impacted by incurring additional costs in the development process
due to multiple levels of approvals or ad hoc design and amenity requests.
viii. Ensure that there is a robust system in place to identify the evolving best
practices for managing housing developments being used by other
communities. For example, Bloomington, St. Louis Park, Brooklyn Center, or
others.
b. Reduce the Cost of Building, Renovating and Financing Quality Housing.
i. Develop a parking policy that reflects the latest thinking for current and
future parking needs, parking construction costs, sustainability and evolving
economic and marketability needs for successful projects.
ii. If underground or covered parking is required, be willing to fund it by Tax
Increment Financing (TIF) or other means of subsidy.
iii. Expand the HRA levy to generate funds that can be leveraged for land
acquisition, bridge loans and renovations.
iv. Utilize land trusts and land write-downs to secure land for future
development projects.
v. Empower the City’s Affordable Housing Development Manager to be
responsible for establishing/evaluating the parking, design, and amenity
requirements for affordable housing developments to ensure economic
viability of these projects.
vi. Empower the City’s Affordable Housing Development Manager and the
Director of Community Development to be responsible for parking, design,
and amenity requirements for housing for seniors, people with disabilities and
other housing market segments with specific needs.
vii. Authorize the City, through a public hearing process, to have authority to
make property purchases that are consistent with a city development
STAFF REPORT Page 5
strategy, within a financial limit, to be able to secure control of potential
properties for affordable housing development, in an expeditious manner.
viii. Fully utilize the other options the city has to lower the cost of development
and or financing (i.e. rebate on fees, tax exempt bond financing, upgrading to
an Economic Development Agency, selling land below market value, reduced
property taxes, etc.).
ix. Explore directing City portion of increment of increased tax value of tear
down properties to Affordable Housing Trust Fund.
4. Goal 4: Encourage Sustainable Design and Technology in all New and Substantial
Rehabilitation Housing.
a. Encourage alternative energy sources including solar, wind, waste material, and
geothermal.
b. Promote active and passive energy efficiency in the design and placement of buildings
and trees and educate property owners regarding weatherization and energy
efficiency.
c. Require shadow studies on new or replacement housing structures to ensure active
and passive solar energy use by adjacent properties is not adversely impacted.
d. Promote water conservation by homeowners and housing property owners through
education about wat er conserving appliances and fixtures, and reusing wastewater.
e. Support mitigation of water runoff by encouraging use of rain gardens, rain barrels,
cisterns, permeable driveways and walkways, and appropriate building and landscape
design.
f. Frequently review housing codes and policies to incorporate new technology
regarding alternative energy sources, new energy efficient building practices.
g. Promote new construction and substantial rehabilitation projects to follow leading
industry sustainability standards.
The final report is a compilation of the Task Force’s varied opinions and perspectives. It includes
the preservation of R1 zoning for single-family houses and it recognizes the need for more multi-
family housing production to accommodate growth. It honors the diversity of the neighborhoods
and proposes housing for people who want to age in place, as well as affordability levels for lower
income workers in Edina who may want the option to live closer to their jobs. It recognizes that
Edina is getting older yet needs young families to populate the schools. The report is not
prescriptive. It does not guide what should be built where. Rather it is a document to guide
housing priorities in the city, to suggest strategies to achieve specific goals, and to encourage the
city on how to proactively enable, support and facilitate quality housing development that meets
the evolving needs and desires of current and future residents.
Methodology
Meetings
The Task Force met bi-weekly for 1.5 hours. During the spring of 2020, the meetings were
regularly held once a week for 2 hours including a six-hour long retreat in July. The Task Force has
met approximately 45 times.
STAFF REPORT Page 6
Presentations:
The first few months were spent hearing from individuals and technical experts identified by
members of the Task Force. Presenters included:
• Community Development Director, Cary Teague. Director Teague’s presentation
focused on zoning.
• Race and Equity Coordinator, Heidi Lee. Lee’s presentation focused on the City’s Race
and Equity work plan
• Staff from the Metropolitan Council
• Edina School District
• Chamber of Commerce
• Center for the American Experiment
• Maxfield Research
In addition to presentations, the Task Force reviewed multiple article and reports, including a more
in-depth review of the 2006 Housing Succession Plan and Chapter Four of the 2040
Comprehensive Plan. The Task Force agreed on a synthesize of the materials into four main issue
areas, which became the basis for the Goals and Strategies: Current Housing Stock, Affordable
Housing, Community Drivers, and Finance and Economics.
Decision Making:
Due to the variety of perspectives and philosophies with the Task Force, there needed to be
methodology to determine the goals and strategies without requiring consensus. The Task Force
agreed to utilize the “Fist to Five” approach for decision making - when reviewing a proposed
strategy, each member would rate it with their fist from zero (do not support) to five fingers (full
support):
0 = No support, will work to block
1 = No support, but will not actively block
2 = Minimal support, willing to accept with some modifications
3 = Neutral
4 = Solid support, not over the top enthusiastic
5 = Enthusiastically support
All proposed strategies given a 0, 1, or 2 by anyone were discussed further: Low scored strategies
were not immediately dismissed. Items where there was a consensus (5 to 6 Task Force members
having similar ratings) were considered to have the Task Force’s approval, despite the lack of
consensus. By the end of July, the Task Force had a list of approved goals and strategies. At the
time, the Task Force Members seems to be in agreement on the final outcome.
Engagement:
The HRRC and Planning Commission held a joint meeting to hear a presentation from the Task
Force on November 17. The Edina Housing Foundation reviewed and discussed the proposal at
their November 24th Board Meeting. The HRRC and Foundation submitted responses that are
included in the Report’s addendum and submitted with this Staff Report.
STAFF REPORT Page 7
Challenges Identified by Staff
While tackling this topic is best with a variety of perspectives, it presents some challenges.
• There was a lack of common agreement about among the Task Force members about
whether the Task Force was bound by the parameters of the City’s foundational planning
documents, such as the City’s Comprehensive Plan. This led to an inordinate amount of
time dedicated by Task Force members speculating about what the Council would want
them to do.
• The availability of personal time to dedicate to the Task Force varied widely among the
members. Members with more available time tended to want to meet more often than
members who did not have as much available time. This led, at times, to concerns about
equity of participation among the Task Force members and staff.
• COVID-19 restrictions contracted the range of meeting options and engagement
opportunities in a manner that made both more difficult than expected when the task force
was established in 2019.
• The killing of George Floyd raised unresolved questions regarding how much historical
issues such as restrictive racial covenants play a role in housing disparities experienced
today, and whether Edina bears some responsibility to resolve social inequities.
• There was disagreement, at times, between the Task Force and staff about the selection and
management of consulting partners (Maxfield and Moxie), which led to occasional
frustration among those involved.
• How and who would compose the Task Force’s final report was not well established at the
beginning of the process, which led to authorship and editing struggles at the end of the
process when the final report was being composed.
Concluding Thoughts
The long-term economic, social and health consequences of COVID may affect housing in ways
that we cannot yet imagine. For example, the Maxfield study was completed pre-COVID and
includes a recommendation for additional age-restricted congregate living. Although demographics
may support this, it is unknown whether the pandemic will alter the choices people make when
desiring to age in community. Another example is pre-COVID Millennials were leaving suburban
environments to move closer to downtown areas as evidenced by the development boom in the
North Loop of Minneapolis. However, social unrest, the shift in at home work options, and the
decline of retail and commercial activity, has caused some people to rethink their desired living
location and some are moving back to the suburbs. The Task Force considered these potential
market shifts but felt that the fall-out remains unknown.
Report Presentation
The Housing Strategy Task Force respectfully submits the Report to the HRA.
Staff Recommendation
Staff recommends HRA to direct City Staff to bring back an implementation plan.
STAFF REPORT Page 8
Addendums
• Email from Members of the Human Rights and Relations Commission
• Letter from Edina Housing Foundation
• Task Force Amended Charge
From: Cat Beringer <cat.beringer@gmail.com>
Sent: Thursday, December 3, 2020 4:53 PM
To: Stephanie Hawkinson <SHawkinson@EdinaMN.gov>; Heidi Lee <HLee@EdinaMN.gov>; Mark Felton
<markfeltoncpa@feltonforensics.com>
Subject: Housing Task Force Report comments
EXTERNAL EMAIL ALERT: This email originated from outside the City of Edina. Do not click links or open
attachments unless you recognize the sender and know the content is safe.
Hi Heidi and Stephanie,
I really appreciated how much depth went into compiling this report, including Edina's history. However,
I do have some concerns about a few phrases in the document.
1. I would like to suggest that the word unfounded be added to this sentence:
p. 28* Citing unfounded concerns about crime and property value declines from white buyers, some
housing developers added clauses to property deeds that included racially restrictive covenants.
I think it's important to state that these concerns about crime and property values were unfounded and
not based in fact. These "concerns about crime and property values" were unfounded complaints used
to conceal the true purpose of these covenants. The segregatory effects of these housing policies were
not a fluke, they were the point. To allow this sentence to stand is to be complicit with these housing
policies.
TPT's Jim Crow of the North.
https://www.tpt.org/minnesota-experience/video/jim-crow-of-the-north-stijws/
and this article
https://www.npr.org/2017/05/03/526655831/a-forgotten-history-of-how-the-u-s-government-
segregated-america
https://www.nytimes.com/2017/08/24/upshot/how-redlinings-racist-effects-lasted-for-decades.html
2. p.29* Understanding the history of exclusionary housing policy helps people recognize housing
regulations that may reinforce patterns of income exclusion. It is a matter of personal opinion whether
active zoning measures should be taken to reduce the income segregation created by past housing
policies.
The two sentences above seem to be in direct contradiction with each other. The second sentence
should maybe be removed or rephrased. Otherwise, it gives the impression that the city is okay with
income segregation in housing. The phrase "personal opinion" especially seems to imply a certain level
of absence of culpability, as the entire point is that housing policy helped to create the problem, and it
cannot be fixed without further housing policy.
3. I would like to reiterate my concerns about affordable housing that can accommodate families.
Although, I think it is too late to be added to the discussion about housing for this report, I would like
the city to be more aware of the lack of affordable housing beyond studio, one bedroom, or two
bedroom apartments. I think the commonly used industry term "multifamily housing" is misleading
when you are describing households and not families. And, although a two bedroom apartment could
conceivably accommodate a family of four, leasing agreements may not allow a family of that size.
Overall, I really appreciate the comprehensive work of the task force and their attempt to cover such a
broad range of topics while trying to give voice to many different perspectives.
Thanks,
Cat Beringer
Chair HRRC
From: Mark Felton <markfeltoncpa@feltonforensics.com>
Sent: Thursday, December 3, 2020 6:55 PM
To: Cat Beringer <cat.beringer@gmail.com>
Cc: Stephanie Hawkinson <SHawkinson@EdinaMN.gov>; Heidi Lee <HLee@EdinaMN.gov>
Subject: Re: Housing Task Force Report comments
EXTERNAL EMAIL ALERT: This email originated from outside the City of Edina. Do not click links or open
attachments unless you recognize the sender and know the content is safe.
Hello Everyone:
I support and concur with Chair Beringer’s comments and concerns. I am very comfortable letting her
letter represent my concerns as a member of the HRRC and as an Edina resident.
Best regards,
Mark Felton
*Note from Staff: The page numbers have changed between the draft version review by the HRRC and
the final version
S H E L T E R I N G O U R C O M M U N I T Y
4801 WEST 50TH STREET
EDINA, MINNESOTA 55424
952-826-0462
FAX: 952-826-0389
November 30, 2020
Dear Mayor and City Council Members:
With this letter, The Edina Housing Foundation wishes to provide its comments on the Affordable Housing
Priorities for Edina report.
In summary, we believe this is a balanced report, providing lots of good context and information on our
community. We support most all of its recommendations and conclusions and believe that by pursuing these
goals our community will become stronger.
The board members of the Edina Housing Foundation are all long-term Edina residents, some have lived here
their entire lives. We resonate with the report in that it describes Edina as a strong, close-knit community that is
well run. Edina has made many good decisions and taken bold leadership positions over the years – Southdale,
Edinborough, and Centennial Lakes come to mind. Housing affordability is a regional problem, and Edina has the
financial and human resources to take a leadership role.
For many years we have observed the tension between two groups in Edina: one that embraces growth, and one
that wants things to remain as they are. Whereas there are valid concerns that each group holds, the Housing
Foundation board tends to favor growth in our community. We note two points highlighted in the report. First,
88% of Edina’s land area is developed as single-family homes and will remain as such. That means that future
household growth in Edina will come from the 12% of Edina’s land area that is not already developed as single-
family homes. We support this direction as we believe it both preserves the prevailing suburban character of
our community, while also offering greater density in targeted areas. We believe this is a wise and balanced
approach to planning. We believe that a zero or tentative growth policy is not an option if Edina wishes to
maintain and sustain itself as a thriving and desirable community. Targeted growth in certain areas of our
community will sustain us as a premiere community where people want to live, play and work. We acknowledge
that growth will bring challenges we must address, but we believe it is far preferable to address these issues
than those associated with stagnation.
The only recommendation the Housing Foundation does not support is, “Promote Missing Middle Housing
Production”. The Housing Foundation certainly supports missing middle housing. However, we do not believe it
is reasonable or realistic for Edina to pursue this housing – our land values are simply too high to support this
type of housing production. If we did pursue this, the public subsidy would likely be very high. And we believe
that limited resource has better uses.
Lastly, we believe there are two community education directions implied from this report. First, on page 34 the
taskforce “recommends that concerns related to ‘poor building/over-building/density of the city’ be investigated
…”. We commend this mayor and city council as well as past leaders for decisions that have made our
community what it is, and encourage our leaders to continue to educate the community on the benefits that
come from growth, redevelopment, and yes, density. Second, we believe the mayor and city council should
support broad community education on affordable housing. What is it? What does it look like? What are the
needs? And what are the benefits? To that end, the Edina Housing Foundation makes itself available as needed
in this education role.
We thank the Mayor and City Council for the leadership it has shown over the years on affordable housing in our
community. And we thank the Edina Housing Strategy Task Force for its strong report and hard work on this
issue. And as always, we offer our service to the Edina community.
Although Bernadette Hornig is a board member for the Edina Housing Foundation, she has recused herself from
the Housing Foundation’s comment letter, as she is also a member of the Task Force.
Sincerely,
The Edina Housing Foundation
Jeff Huggett
Mary Kay McNee
Jerry Gilligan
Ann Swenson
EDINA ADVISORY TASK FORCE I HOUSING STRATEGY I CITY OF EDINA Page 1
CITY COUNCIL TASK FORCE CHARGE
PROJECT: EDINA HOUSING STRATEGY
PURPOSE
Support the City’s development of a comprehensive housing strategy.
OBJECTIVE
- Gather information, perspectives and provide analysis that assists in the development of a comprehensive
housing strategy for the community.
- To review the current state of housing options in Edina.
- To recommend an optimal composition of housing options to the City Council to ensure the long term
fiscal and social health and viability of the community.
- To propose a strategy to the City Council that seeks to achieve that optimal composition.
STRATEGIES
Stage 1:
- Obtain public input on experiences with housing in Edina
- Study other communities and best practices
- Review past City studies/initiatives, including the 2006 Housing Succession Plan
Stage 2:
- Develop a recommendation for City Council using information from stage 1
The Housing Strategy Task Force will advance its proposed deliverables to the Planning Commission for a
Review and Comments action prior to advancing the same deliverables to the City Council.
TIMELINE
- May 2019 through December 2019
KEY DATES
May 7, 2019 Council authorizes the establishment of City Council Task Force
June 4, 2019 City Council appoints Task Force members
STAGE 1: GATHER INFORMATION/EXPLORATORY
Aug. 7, 2019 Task Force presents initial findings report for Council to affirm (work session)
STAGE 2: HOUSING STRATEGIES/RECOMMENDATION
Dec. 3, 2019 Task Force presents final strategy to Council
Dec. 17, 2019 Council adopts final strategy
COMMITMENT
EDINA ADVISORY TASK FORCE I HOUSING STRATEGY I CITY OF EDINA Page 2
- Appointed members will be asked to fulfill their work until Council adopts the final
strategy in December 2019
- Appointed members should expect to meet at least monthly with additional off-line work
- Appointed members should consider project timeline prior to appointments
MEETINGS
- The Task Force will establish their schedule including meeting times and dates as needed to complete the
work
- Conclusion of work must fall into the indicated timeline
- Meetings are public
LEVEL OF AUTHORITY
CITY COUNCIL
The establishment and appointments of a City Council Task Force are conducted by the Council. The Council has
the authority to appoint/remove members.
CITY MANAGER
The City Manager has the authority to:
- Designate the Staff Liaison and any additional staff support needed
- Authorize financial resources
- Enter into a service contract with a subject matter expert/consultant
- Make recommendations to Council on adjustments to this Task Force charge
TASK FORCE
The Task Force has the authority to:
- Conduct public engagement and collect input using the City’s public engagement protocols
- Make adjustments/refinements to the strategy based on input and research
- Recommend the final strategy which will be presented to Council for consideration
TASK FORCE LEADERSHIP
City Council will designate a member of the Task Force to serve as the Chair and another member as the Vice Chair.
The role of the chair will include:
- Prepare agenda
- Lead meetings and facilitate discussions
- Maintain meeting decorum
- Encourage participation of all members
The Vice Chair will support the Chair as needed and perform the chair duties if the Chair is unavailable.
STAFF LIAISON
City Manager will designate the staff liaison to the Task Force. Liaison role includes:
- Support Task Force chair in preparing agendas and meeting materials
- Provide technical expertise and access to City resources
EDINA ADVISORY TASK FORCE I HOUSING STRATEGY I CITY OF EDINA Page 3
- Relay information from City Council to Task Force and vice versa
- Submit packet materials for City Council review
The Task Force does not direct the work of the liaison.
RESOURCES AVAILABLE
- The Task Force will have access to City resources available for advisory groups i.e.
marketing/communications, meeting supplies, etc
- Also, see City Manager’s level of authority
OUTCOMES
- Comprehensive housing strategy with the following priorities:
o Types of housing
o Sizes
o Affordability
o Location
MEMBERSHIP
APPLICATION
The City of Edina’s Volunteer Edina program will manage the recruitment, application and onboarding process.
CONSIDERATIONS & COMPOSITION
City Council will appoint up to seven members with a variety of perspectives and experiences on housing in the
community.
Housing Strategy Implementation Plan
August 12, 2021
Acknowledgements
Task Force Members
•Bernadette Horning, Co-chair
•Daniel Hunt, Co-chair
•Janet Kitui
•Joe Burke
•Norm Siekman
•Steve Brown
•Thomas Koon
•Feroza Mehta (first six months)
City Staff
•Stephanie Hawkinson –Affordable Housing
Development Manager
•MJ Lamon, Community Engagement Coordinator
•Scott Neal, City Manager
•Cary Teague, Community Development Director
Consultant Team
•Merritt Clapp-Smith, Moxie Consulting LLC
•Antonio Rosell , Community Design Group
•Janne Flisrand, Flisrand Consulting
HSTF
Affordable
Housing
Development
Manager at
beginning of
process
Timeline
HSTF
April 2019
City council formed Housing Strategy Task Force.
December 2020
Task Force met 45 times and presented final report to HRA. HRA adopted and directed staff to prepare implementation plan.
January-August 2021
City Staff across departments reviewed and provided feedback on proposed strategies. Implementation Plan presented to HRA
2022-2023
City Departments and Commissions implement approved strategies through work plans.
Goals and Strategies
GOAL 1: PROMOTE LIFECYCLE HOUSING
A) Promote affordable and attainable housing
B) Promote missing middle housing production
C) Promote special needs housing
D) Encourage preservation and promotion of diverse housing stock
GOAL 2: AMEND LAND USE REGULATIONS TO ENABLE A MORE DIVERSE HOUSING MIX
A) Adjust zoning standards for housing
B) Consider zoning district amendments to expand housing options
GOAL 3: REDUCE BUILDING COSTS
A) Streamline the approval process for housing developments requiring a variance or subsidy
B) Reduce the cost of building, renovating and financing quality housing
GOAL 4: ENCOURAGE SUSTAINABLE DESIGN AND TECHNOLOGY IN ALL NEW AND SUBSTANTIAL
REHABILITATION HOUSING
HSTF
1.Strategy 1A.1: Prepare a housing implementation plan using a mix of tools to achieve the City’s housing goals,
including the Comprehensive Plan goal range of 992 to 1,804 affordable units, in the ten-year horizon, with time-
bound goals and milestones, to be reviewed on an annual basis.
2.Strategy 1C.1 Support a range of housing options for people with special needs (Developmentally, Physically, or
Mentally)
3.Strategy 3A.6: Conduct semi-annual project review meetings between Staff, City Council and Planning
Commission to discuss lessons learned, gain alignment and determine policy implications of projects completed
in the past six months.
4.Strategy 3A.8: Ensure that there is a robust system in place to identify the evolving best practices for managing
housing developments being used by other communities. For example, Bloomington, St. Louis Park, Brooklyn
Center or others
2022-2023 Workplan: Community
Development
HSTF
1.Strategy 1A.2: Facilitate the development of “new”
housing options such accessory dwelling units to
accommodate the diverse needs of people of different
ages, household sizes, lifestyle and incomes.
2.Strategy 1B.1: Support opportunities to accommodate
Missing Middle housing within the city, defined as range
of multi-unit or clustered housing types compatible in
scale with single-family homes.
3.Strategy 2B.3: Support the development and preservation
of affordable housing throughout Edina where there is
access to transit.
4.Strategy 2B.1: Consider zoning amendments in limited
areas (such as transitional areas and activity nodes) to
allow lot splits for infill, single-family ownership housing,
detached or attached (zero lot line), on lots after splitting
that are 50’ or wider (or 3,500 sf or larger).
2022-2023 Workplan: Planning
Commission
HSTF
Planning Commission Continued
5.Strategy 2B.2: Consider amending current R1 zoning to allow attached or detached Accessory Dwelling Units (ADU)
such as self-contained "mother-in-law units". Develop Small Area Plans for extending R2 zoning along Vernon Ave
from 169 to Interlachen, France Ave north of Hwy 62, and Valley View from 66th to Hwy 100. Evaluate additional
areas for R2 zoning.
6.Strategy 2A.2: Continue to allow teardowns/rebuilds but consider design guidelines and regulations that prevent
privacy invasion via window placement and infringement on both active and passive solar energy capture.
7.Strategy 3A.5: Simplify the current project approval process. Limit discussion to the variance or 2040 Comprehensive
Plan amendment issues being raised.
8.Strategy 3A.7: Complete Post-mortem reviews of the current development review process, paying particular attention
to assessing the level of quality of resulting developments. Identify what developments have been delayed or have been
negatively impacted by incurring additional costs in the development process due to multiple levels of approvals or ad
hoc design and amenity requests
HSTF
1.Strategy 3B.8: Fully utilize the other
options the city has to lower the cost of
development and or financing (i.e.rebate
on fees, tax exempt bond financing,
upgrading to an Economic Development
Agency, selling land below market value,
reduced property taxes, etc.)
2.Strategy 3B.3: Expand the HRA levy to
generate funds that can be leveraged for
land acquisition, bridge loans and
renovations.
2022-2023 Workplan: Finance
HSTF
2022-2023 Workplan: EEC
1.Strategy 4.1: Encourage alternative
energy sources including solar,
wind, waste material, and
geothermal.
HSTF
2022-2023 Workplan:
Communications
1.Strategy 1D.5: Increase awareness about the range of housing variety that
exists in Edina.
HSTF
1.Strategy 4.2:Promote active and passive
energy efficiency in the design and
placement of buildings and trees and
education of property owners regarding
weatherization and energy efficiency
2.Strategy 4.5: Support mitigation of water
run-off by encouraging use of rain
gardens, rain barrels, cisterns, permeable
driveways and walkways, and
appropriate landscape design.
2022-2023 Workplan:
Sustainability
HSTF
Thank you!
Questions?
HSTF
Date: Augus t 12, 2021 Agenda Item #: VI I I.A.
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:P entago n Village - P ro ject Update regarding Lo t 3 Info rmatio 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 information only.
I N TR O D U C TI O N :
T his update is regarding proposed changes to L ot 3. A staff memo is attached for informational purposes.
AT TAC HME N T S :
Description
Staff Report
August 12, 2021
Chair and Commissioners of Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Pentagon Village – Project Update regarding Lot 3
Information / Background:
As reported on May 27, 2021, developers Solomon Real Estate and Hillcrest Development are
pursuing modifications to the PUD zoning and TIF Agreement to accommodate a new apartment
building instead of the previously anticipated extended-stay hotel on Lot 3.
Staff is preparing a TIF modification for consideration by the HRA Board after the revised zoning is
considered on August 19th.
If the proposal secures the requested changes to zoning, the related TIF modification is anticipated
to include:
•Recognition of the change in use for Lot 3
•Recognition of the parties involved and organizational structure of the new business entity
who is party to the TIF Agreement
•Limitation on private residential use of the public parking structure
•Modification to park maintenance fees to reflect the inclusion of some affordable housing
units
This update is provided for informational purposes only. No action is required at this time.
Housing and Redevelopment Authority
Established 1974