HomeMy WebLinkAbout2022-11-16 HRA Regular Meeting PacketAg enda
E dina H ousing and R edevelopm ent Author ity
City of E dina, Minnesota
City Hall, Council Chambers
Thur sday, Novem ber 17, 2022
7:30 AM
Watch the m eeting on cable TV or at EdinaMN.gov/LiveMeeting s or
Facebook.com /EdinaMN.
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Call 786-496-5601
E nter Conference PIN 6778494#
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I.Call to Ord er
II.Roll Call
III.Pledge of Allegia n ce
IV.Ap p roval of Meetin g Agen d a
V.Com m unity Com m en t
Du ring "Com m unity Com m en t," th e Edin a Housing and Redevelop m ent
Au thority (HRA) will in vite resid ents to sh are new issues or con cern s tha t
h aven't been con sid ered in th e p ast 30 da y s b y th e HRA or w h ich a ren't
slated for fu ture consideration . Individ u als m u st lim it their com m ents to
three m inutes. Th e Ch air m a y lim it the num ber of sp ea kers on th e sa m e
issue in th e interest of tim e a n d topic. Gen era lly sp ea king, item s tha t are
elsewhere on tod ay's a genda m a y not b e addressed d u ring Com m unity
Com m en t. In d ividua ls sh ould not expect th e Ch air or Com m issioners to
resp ond to th eir com m en ts toda y . Instead the Com m issioners m ight refer the
m atter to sta. for consideration a t a fu ture m eeting.
VI.Ad option of Con sen t Agenda
All a genda item s listed on the consent a genda a re con sid ered rou tin e and
will be en acted by one m otion. There will be no sepa rate d iscussion of such
item s unless requested to be rem oved from the Con sen t Agenda by a
Com m ission er of the HRA. In su ch ca ses the item w ill b e rem oved from th e
Consent Agen d a and con sid ered im m ediately follow ing the a d option of th e
Consent Agen d a. (Fa vorable rollcall vote of m a jority of Com m issioners
p resent to approve.)
A.Dra ft Min u tes from Octob er 13, 2022
B.4040 W . 70th Acquisition Loa n Forgiveness
C.Certi9cate of Com pletion - Brain erd Enterprises LLC dba Mann Th ea tres
VII.Reports/Recom m enda tions: (Favora b le vote of m ajority of Com m ission ers
p resent to approve excep t where n oted)
A.Loan Agreem ent w ith E d ina Cha m b er of Com m erce
B.Upda ted Ta x In crem ent Fin ancing Policy
VIII.Executive Director's Com m ents
A.Potentia l Program s for SPARC Fund
B.HRA Project Statu s Up d ate
C.Pentagon Villa ge Lot 4 - Up d ate
D.Statu s Report on Im plem en tin g Hou sin g Strategy Task Force
Recom m enda tions
IX.HRA Com m issioners' Com m en ts
X.Ad jou rn m ent
Th e E d ina Housing a n d Redevelop m ent Au thority wa n ts all pa rticip ants to be
com fortable b ein g pa rt of th e p u b lic p rocess. If y ou n ee d a ssista n ce in the w a y of
h ea ring am pli9ca tion, a n in terp reter, large-p rint docum en ts or som ethin g else,
p lease ca ll 952-927-8861 72 hou rs in advance of the m eeting.
Date: November 17, 2022 Agenda Item #: VI.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
Minutes
F rom:Liz O ls on, Administrative S upport S pecialist
Item Activity:
Subject:Draft Minutes from O c tober 13, 2022 Action
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
I N TR O D U C TI O N:
AT TAC HME N T S:
Description
Draft Minutes from October 13, 2022
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
OCTOBER 13, 2022
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 7:34 a.m. then explained the processes created for
public comment.
II. ROLLCALL
Answering rollcall were Commissioners Anderson, Jackson, and Chair Hovland.
Absent: Commissioners Pierce and 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: Anderson, Jackson, and 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:
V.A. Approve Draft Minutes of the Regular Meeting of September 15, 2022
Rollcall:
Ayes: Anderson, Jackson, and Hovland
Motion carried.
VII. REPORTS AND RECOMMENDATIONS
VII.A. APPROVAL OF MULTIFAMILY AFFORDABLE HOUSING PROPERTY TAX RELIEF
AND ENERGY EFFICIENT GRANT PROGRAM VERSION 2022 – APPROVED
Affordable Housing Development Manager Hawkinson stated in 2018 and 2019 staff proposed
property tax relief program 4d to help preserve Naturally Occurring Affordable Housing (NOAH)
apartments. She outlined associated plans adopted since 2018 and noted only one property,
containing 23 units, signed on. With the passage of the Climate Action Plan and the associated
requirement that apartment buildings must undergo energy bench marking, staff redesigned the
program to help NOAH apartments achieve bench marking goals while also preserving the
affordability of their buildings. She outlined preservation of NOAH properties in detail, housing
cost-burdened renters, and said no additional funds were being sought at this time. She explained
that 4d referred to low income rental classification of .0075% and that in order to qualify the City
must provide financing to the rental housing property as evidenced by a recorded document then
shared examples of how property taxes could be saved.
Sustainability Manager Hancock spoke about the Resilient Homes Grant program that met CAP
goals and reasons for the need that included a greater energy burden for households with lower
incomes, less efficient than market rate housing, and that a large portion of properties were near
Minutes/HRA/October 13, 2022
Page 2
transit routes and amenities. She outlined the goal to reduce energy burden for renters then listed
eligible projects such as insulation, heating system replacements, and others.
Ms. Hawkinson reviewed the financial information that included program cost, source and use of
funds, and administration fee as conducted by the Center for Energy and Environment. She outlined
expected impact that would preserve NOAH housing, retain the City’s tax levy, and accelerate
meeting CAP goals.
The Council asked questions and provided feedback.
Motion by Commissioner Jackson, seconded by Commissioner Anderson, to approve
the Multifamily Affordable Housing Property Tax Relief and Energy Efficient Grant
Program Version 2022 as presented.
Roll call:
Ayes: Anderson, Jackson, and Hovland
Motion carried.
VII.B. $150,000 MATCHING GRANT TO EDINA HOUSING FOUNDATION FOR FIRST
GENERATION DOWN PAYMENT ASSISTANCE PROGRAM – APPROVED
Ms. Hawkinson stated the Edina Housing Foundation was seeking a $150,000 grant to match the
$150,000 they committed to the First Generation down payment assistance program. Since the
program's adoption in November 2021, seven home buyers have benefited from these funds which
augment the Come Home 2 Edina program. As the First Generation loan was forgiven, and the
Foundation did not have a revenue stream, staff was seeking assistance from the HRA in order to
assist twice as many home buyers. She reviewed loan data in detail and said five properties had taken
advantage of the program and recommended the match be granted.
The Council asked questions and provided feedback.
Motion by Commissioner Jackson, seconded by Commissioner Anderson, to approve a
$150,000 grant to the Edina Housing Foundation for their First Generation Down
Payment Assistance Program as presented.
Roll call:
Ayes: Anderson, Jackson, and Hovland
Motion carried.
VII.C. APPROVE LOAN TERMS FOR EDINA INNOVATION LAB – APPROVED
Economic Development Manager Neuendorf stated this item pertained to the renovation and re-
occupancy of vacant commercial space located at 7201 Metro Avenue. The Edina Chamber of
Commerce intended to the lease the space and use it to establish the Edina Innovation Lab. This
proposal was consistent with goals expressed in the 2015 Vision Edina and the 2018
Comprehensive Plan. He said staff prepared a proposal to which the Edina Chamber of
Commerce was agreeable to the terms. He outlined the need for incubator space for small
businesses to thrive and outlined proposed funds through SPARC and said the Edina Chamber of
Commerce was conducting a pilot program then outlined the capital fund for space and operation
funds. He said the Chamber had a letter of intent in preparation for a lease then reviewed a
summary of loan terms for a seven-year lease minimum and loan amount not to exceed $800,000
at 2% simple interest. Mr. Neuendorf said staff was recommending up to $200,000 loan forgiveness
as this was a program needed in the City.
Lori Syverson, Executive Director Edina Chamber of Commerce, shared their review of several
models which was modified to include an accelerator program but was difficult to sustain revenue-
generation model long-term and explained how the new program was intended to help businesses
Minutes/HRA/October 13, 2022
Page 3
that survived the pandemic take the next step. She spoke about how they intend to expand the
program to leadership and purpose in order to raise funds and continue to move forward.
Paul Mooty, Edina Chamber of Commerce Board of Directors, said this program was already
occurring and that others wanted to participate and said they had reviewed the program and was
confident it would work and help businesses grow. He spoke about connections for businesses and
sponsorships and how the program would be financially sound and result in the cohort model so
the program would be self-sustaining in year two.
The Council asked questions and provided feedback.
Motion by Commissioner Anderson to move to continue consideration to authorize
staff and engage legal advisor to prepare Loan Agreement with the Edina Chamber of
Commerce based on the recommended terms. Motion died for lack of a second.
Motion by Commissioner Jackson, seconded by Commissioner Anderson, to authorize
staff and engage legal advisor to prepare Loan Agreement with the Edina Chamber of
Commerce based on the recommended terms.
Roll call:
Ayes: Anderson, Jackson, and Hovland
Motion carried.
VIII. HRA COMMISSIONERS’ COMMENTS – Received
IX. EXECUTIVE DIRECTOR’S COMMENTS – Received
IX.A. OPEN TO BUSINESS MID-YEAR REPORT
X. ADJOURNMENT
Motion made by Commissioner Jackson, seconded by Commissioner Anderson, to
adjourn the meeting at 9:24 a.m.
Roll call:
Ayes: Anderson, Jackson, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Date: November 17, 2022 Agenda Item #: VI.B.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:S tephanie Hawkinson, Affordable Housing
Development Manager Item Activity:
Subject:4040 W. 70th Acquis ition Loan F orgivenes s Ac tion
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
Approved the forgiveness of the $3,650,000 loan with the Edina H ousing F oundation per the F irst Amendment to
Loan D ocuments and authorize execution of forgiveness.
I N TR O D U C TI O N:
On November 23, 2020 T he H R A executed a First Amendment to L oan Documents for 4040 West 70th Street
upon the Edina H ousing F oundations fulfillment of the following conditions:
(i) T he S elected Developer shall have receive all governmental approvals and entitlements necessary to construct
the P roposed P roject on the P roperty;
(ii) T he S elected Developer shall have closed on, or otherwise secured binding commitments for, all financing
necessary for the construction of the P roposed P roject; and
(iii) Borrower and the S elected Developer shall have executed and recorded
the G round Lease against the P roperty, which Ground L ease shall (A) restrict the use of the P roperty for
affordable housing purposes in a manner consistent with at least the minimum levels of affordability described in
this Amendment for the entire term of the Ground L ease; (B ) be senior to any mortgage or other lien on the
P roperty (except for property taxes and assessments not yet due and payable); (C ) include a requirement that
the term of the Ground L ease and affordable housing use restrictions therein not be amended without the prior
written consent of the H R A; and (D ) contain such other terms and conditions which are consistent with this
Amendment and otherwise negotiated between B orrower and the Selected D eveloper the Ground L ease terms
and conditions described herein.
As these conditions have been met, the loan shall be forgiven.
AT TAC HME N T S:
Description
Termination of Loan and Note
First Amendment to Loan Documents
Condition 1: Site Improvement Performance Agreement
Condition 2: Secured Financing
Condition 3: Ground Lease
1
4886-4907-3462\1
Termination of Loan Agreement and Promissory Note
(4040 West 70th Street)
This Termination of Loan Agreement and Promissory Note (this “Termination”) is made as of
November 17, 2022 (the “Effective Date by and between the Housing and Redevelopment Authority of
Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the state
of Minnesota (the “HRA” or “Lender”) and the East Edina Housing Foundation, a Minnesota nonprofit
corporation (“Borrower”).
Recitals:
A. Lender and Borrower entered into that certain Loan Agreement dated June 1, 2020 (as the
same may be amended, modified, supplemented or replaced from time to time, the “Loan Agreement”)
pursuant to which Lender made a loan to Borrower in the amount of $3,650,000.00 (the “Loan”), which
Loan is evidenced by that certain Promissory Note dated June 1, 2020 executed by Borrower in favor of
Lender (as the same may be amended, modified, supplemented or replaced from time to time, the “Note”),
which Note is secured by that certain Mortgage, Assignment of Rents, Security Agreement, and Fixture
Financing Statement dated June 1, 2020 from Borrower to Lender, recorded on June 5, 2020 as Document
No. T05714416, in the Office of the Registrar of Titles, Hennepin County, Minnesota (as the same may be
amended, modified, supplemented or replaced from time to time, the “Mortgage”), and encumbering certain
improved real property located at 4040 70th Street West, Edina, Minnesota, legally described in the Loan
Agreement (collectively, the “Property”).
B. As provided in the Loan Agreement, the HRA, as Lender, agreed to loan, and Borrower
agreed to borrow, the Loan to finance Borrower’s acquisition of the Property for affordable housing
purposes.
C. As further provided in the Loan Agreement, the HRA, as Lender, agreed to forgive the
Loan and terminate the Loan Agreement and Note and release the Mortgage if Borrower entered into a 99-
year ground lease for the Property, with Borrower, as lessor, and the “Selected Developer” (as defined in
the Loan Agreement), as lessee (the “Ground Lease”), pursuant to which the Selected Developer would
develop, construction, own, and operate an affordable housing project on the Property consisting of an
100% affordable, age-restricted, senior housing community, to be rented to tenants at a mix of levels of
affordability, with the overall average of the tenants’ income not to exceed 60% of AMI for the entire 99-
year term of the Ground Lease, and which otherwise meets the requirements of the Loan Agreement (the
“Required Project”),
D. As of the date hereof, Borrower and the Selected Developer have entered into the Ground
Lease upon the terms and conditions of the Loan Agreement, and Selected Developer has (i) obtained all
required governmental approvals and entitlements necessary to construct the Required Project, (ii) closed
on all financing necessary for the construction of the Required Project, (iii) commenced construction the
Required Project on the Property, and (iv) otherwise satisfied the Forgiveness Conditions under the Loan
Agreement.
E. Accordingly, the HRA, as Lender, has agreed to forgive the Loan and terminate the Loan
Agreement and Note and release the Mortgage, all upon the terms set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the undersigned hereby affirms and agrees as follows:
2
4886-4907-3462\1
1. Termination and Release. Upon and effective as of the Effective Date, Lender confirms
that: (a) the full amount of principal and interest outstanding on the Note is fully discharged and cancelled,
(b) Borrower is released from all obligations under the Note, the Mortgage, and the Loan Agreement, and
(c) all liens and security interests in any and all collateral in which the Borrower has granted a security
interest to Borrower are automatically released, satisfied and of no further force and effect. Borrower
acknowledges receipt of a recordable satisfaction of the Mortgage delivered to Borrower by Lender prior
to the date hereof. Borrower hereby acknowledges and agrees that Lender shall have no further obligations
to make any advances whatsoever under the Loan Agreement and that the Loan Agreement is terminated
in all respects.
2. Delivery of Original Note. Lender shall promptly return to Borrower the original Note in
its possession.
3. Due Authorization. Lender and Borrower each have all requisite power and authority to
execute this Termination, and this Termination has been duly executed and delivered by Lender and
Borrower and constitutes the legal, valid and binding obligation of Lender and Borrower, respectively,
enforceable in accordance with its terms.
4. Governing Law. This Termination is delivered in and made and shall in all respects be
construed according to the laws of the State of Minnesota.
5. Successors and Assigns. This Termination and each and every part hereof shall be binding
upon the parties hereto and upon their administrators, representatives, executors, successors and assigns..
6. Superseding Effect. This Termination supersedes any and all prior agreements regarding
payment of the Note and the Loan.
7. Counterparts. This Termination may be executed in two or more counterparts, each of
which shall be an original, but all of which together shall constitute one and the same instrument, and the
parties hereby acknowledge and agree that electronic signatures, including execution using DocuSign,
Adobe Sign, or signatures transmitted by email in PDF format shall be legal and binding and shall have the
same full force and effect as if an original of these resolutions had been delivered.
[Remainder of Page Intentionally Left Blank. Signature Pages Follows]
[Signature Page to Termination of Loan Agreement and Promissory Note]
4886-4907-3462\1
IN WITNESS WHEREOF, Lender and Borrower have caused this Termination to be duly executed
in their names and on their behalf, all on or as of the date first above written.
LENDER:
Housing and Redevelopment Authority of Edina,
Minnesota, a public body corporate and politic
organized and existing under the laws of the state of
Minnesota
By: _________________________________________
James B. Hovland, Chair
By: _________________________________________
Scott H. Neal, Executive Director
BORROWER:
East Edina Housing Foundation,
a Minnesota nonprofit corporation
By:
Name:
Its:
By:
Name:
Its:
First Amendment to Loan Documents
(4040 West 70th Street)
This First Amendment to Loan Documents (this "Amendment") is made and entered into effective
Vetfinfotveiv"" , 2020, by and between the Housing and Redevelopment Authority of Edina,
Minnesota, a public body corporate and politic organized and existing under the laws of the state of
Minnesota (the "HRA" or "Lender") and the East Edina Housing Foundation, a Minnesota nonprofit
corporation ("Borrower").
Recitals:
A. Lender and Borrower entered into that certain Loan Agreement dated June 1, 2020 (as the
same may be amended, modified, supplemented or replaced from time to time, the "Original Loan
Agreement") pursuant to which Lender made a loan to Borrower in the amount of $3,650,000.00 (the
"Loan"), which Loan is evidenced by that certain Promissory Note dated June 1, 2020 executed by
Borrower in favor of Lender (as the same may be amended, modified, supplemented or replaced from time
to time, the "Note"), which Note is secured by that certain Mortgage, Assignment of Rents, Security
Agreement, and Fixture Financing Statement dated June 1, 2020 from Borrower to Lender, recorded on
June 5, 2020 as Document No. T05714416, in the Office of the Registrar of Titles, Hennepin County,
Minnesota (as the same may be amended, modified, supplemented or replaced from time to time, the
"Mortgage"), and encumbering certain improved real property located at 4040 70th Street West, Edina,
Minnesota, legally described on the attached Exhibit A (collectively, the "Property")
B. In accordance with Article 2 of the Original Loan Agreement, Borrower has identified an
Affordable Housing Developer to develop the Project on the Property, such Affordable Housing Developer
being LUPE DEVELOPMENT PARTNERS, LLC, a Minnesota limited liability company ("Lupe"), and
ECUMEN, a Minnesota nonprofit corporation ("Ecumen", and together with Lupe, or their permitted
successor or assign, collectively, the "Selected Developer").
C. Borrower and the Selected Developer have entered into that certain Affordable Housing
Development and Ground Lease Option Agreement (the "Development and Option Agreement"), pursuant
to which Borrower has granted the Selected Developer the exclusive rights to:
(i) pursue and develop a Project on the Property consisting of an 100% affordable,
age-restricted, senior housing community, to be rented to tenants at a mix of levels
of affordability, with the overall average of the tenants' income not to exceed 60%
of AMI, and which otherwise meets the requirements of the Project under the Loan
Agreement (the "Proposed Project"), and
(ii) enter into a 99-year ground lease for the Property, with Borrower, as lessor, and
the Selected Developer, as lessee (the "Ground Lease"), pursuant to which the
Selected Developer will own the Proposed Project, operate the Proposed Project
through a management agreement with a qualified operator affiliated with Ecumen,
and use the Property exclusively for the Proposed Project with the above
affordability levels for the full term of the Ground Lease, and the expiration of the
Ground Lease, the Proposed Project will revert to Borrower.
D. The financial feasibility of the Proposed Project and the long-term preservation of
affordable housing on the Property through the Ground Lease, as contemplated in the Development and
Option Agreement, is conditioned on Lender agreeing to forgive the Loan, and Lender is willing to forgive
the Loan in exchange for achieving such long-term preservation of affordable housing on the Property, all
1
4847-7005-3071\2
upon the terms and conditions set forth in this Amendment.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:
1. Recitals; Defined Terms. The Recitals are incorporated into this Amendment by this
reference, including the definitions set forth therein. Terms capitalized in this Amendment, but not
otherwise defined, have the meanings given to them in the Original Loan Agreement. The "Loan
Agreement" is the Original Loan Agreement as amended by this Amendment.
1. Conditional Forgiveness of the Loan.
(a) Forgiveness Conditions. In accordance with Section 1(b), and notwithstanding
anything to the contrary in the other Loan Documents, Lender shall forgive the Loan upon
satisfaction of all the following conditions (collectively, the "Forgiveness Conditions"):
(i) The Selected Developer shall have receive all governmental approvals and
entitlements necessary to construct the Proposed Project on the Property;
(ii) The Selected Developer shall have closed on, or otherwise secured binding
commitments for, all financing necessary for the construction of the Proposed Project; and
(iii) Borrower and the Selected Developer shall have executed and recorded
the Ground Lease against the Property, which Ground Lease shall (A) restrict the use of
the Property for affordable housing purposes in a manner consistent with at least the
minimum levels of affordability described in this Amendment for the entire term of the
Ground Lease; (B) be senior to any mortgage or other lien on the Property (except for
property taxes and assessments not yet due and payable); (C) include a requirement that
the term of the Ground Lease and affordable housing use restrictions therein not be
amended without the prior written consent of the HRA; and (D) contain such other terms
and conditions which are consistent with this Amendment and otherwise negotiated
between Borrower and the Selected Developer the Ground Lease terms and conditions
described herein.
(b) Forgiveness Procedure. Promptly following the satisfaction of all the Forgiveness
Conditions by Borrower and/or the Selected Developer, Borrower shall deliver reasonable evidence
of such satisfactions to Lender and a request that Lender forgive the Loan in accordance with this
Amendment. Promptly following such request, Lender shall confirm whether the Forgiveness
Conditions have been satisfied, and if so satisfied, Lender shall deliver to Borrower executed
originals of the following documents:
(i) a cancellation of the Note and termination of the Loan Agreement; and
(ii) a satisfaction of the Mortgage in recordable form.
2. Modification of the Terms of the other Loan Documents. All references to the "Loan
Agreement" in the other Loan Documents (e.g., the Note and Mortgage) shall refer to the Loan Agreement
as amended by this Amendment. All references to such other Loan Documents (e.g., the Note and
Mortgage) in the Loan Agreement shall refer to such other Loan Documents as amended by this
Amendment.
2
4847-7005-3071\2
b
Housing and Rede e
Minnesota, a pub is
organized and exi
Minnesota
pment Authority of Edina,
dy corporate and politic
nder the laws of the state of
James B. ovland, Chair
By:
Scott H. Neal, ec tive Direct
IN WITNESS WHEREOF, Lender and Borrower have caused this Amendment to be duly executed
in their names and on their behalf, all on or as of the date first above written.
LENDER:
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this .))111. day of IV NthAAVV" , 2020,
by James B. Hovland and Scott H. Neal, the Chair and Executive Director, respectively, of the Housing and
Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing
under the laws of the state of Minnesota, on behalf of said Authority.
ELIZABETH KELLY OLSON
NOTARY PUBLIC
MINNESOTA
My Commission Expires Jan. 31, 2023
LOA,{ijaPittA' VMA1 DA\7 ,
Notary Public
[Signature Page to First Amendment Loan Agreement (4040 West 70th Street)]
4847-7005-3071\2
Name:
Its: trel-rcr
By:
Notary Public
ANL
STEP‘,
to
pies
2
Notary Public
BORROWER:
East Edina Housing Foundation,
a Minnesota nonprofit corporation
By:
Name: e-fD wi-G k L 61 1) ► v
Its: t
STATE OF lit tivicsobvt-- )
LL LL ) ss.
COUNTY OF Rr-i(111-01,IIn )
The foregoing instrument was acknowle4ed before me this day of Puticv rOef, 2020, by
"feArtnyie"p .G1111 9(the VIC-e—PACS c..teAc6f East Edina Housing Foundation, a Minnesota nonprofit
corporation, on behalf of the corporation.
STATE 001 In OE CD(7/t... )
) ss.
COUNTY OF IlfA/11(n" ) )
STEPHAN.E ANN HAVVKINSON
Ac41310+9 Notary Public
ref;Ferber,,, State of Minnesota
`3,611;11.- My Commission Expires
January 3 1, 2022
The foregoing inst ment was acknowledged before me this day of 1.)GliCwill,-4(2020, by
OV of East Edina Housing Foundation, a Minnesota nonprofit
corporation, oii behalf of the corporation.
[Signature Page to First Amendment Loan Agreement (4040 West 70th Street)]
4847-7005-3071\2
Exhibit A
Legal Description of the Property
Tract C, Registered Land Survey No. 1365, Hennepin County, Minnesota
Torrens Property
[Exhibit A to First Amendment Loan Agreement (4040 West 70th Street)]
4847-7005-3071 \ 2
4853-6034-4871.2
ESCROW AND RECORDING INSTRUCTIONS
July 1, 2022
Guaranty Commercial Title
465 Nicollet Mall, Suite 230
Minneapolis, Minnesota 55401
Attention: Wendy Ethen
wethen@guarantytitle.net
Re: $16,700,000 Hennepin County Housing and Redevelopment Authority,
Multifamily Housing Revenue Note (Cornelia View Apartments), Series 2022 and
$8,460,000 Promissory Note (collectively, the “Note”)
Cornelia View Apartments – Edina, Minnesota
This letter is being executed and delivered in connection with the issuance of the above-
captioned Note and constitutes the escrow and recording instructions of R4 Servicer LLC, as
Controlling Person. When used in these escrow and recording instructions, the following terms
shall have the meanings given below:
Borrower: 4040 West 70th Street Apartments, LP
Borrower’s Counsel: Winthrop & Weinstine, P.A.
Fiscal Agent: U.S. Bank Trust Company, National Association
Closing: Making of Loan
Bond Counsel: Kennedy & Graven, Chartered
Controlling Person Counsel: Kutak Rock LLP
Property: Cornelia View Apartments – Edina, Minnesota
Title Company: Old Republic National Title Insurance Company
Title Agent: Guaranty Title Company
Funding Lender: Allianz Life Insurance Company of North America
Attached to and incorporated into these instructions are the following Schedules and
Exhibits:
Exhibit A Legal Description
Schedule 1 Recordable Documents
Schedule 2 Financing Statements
Schedule 3 Pro Forma Loan Title Policy
Schedule 4 Form of Construction Loan Up-Date Endorsement
2
4853-6034-4871.2
A. Recordable Documents. The documents listed on Schedule 1 and Schedule 2 are
the documents that the Title Agent must be in a position to record and/or file upon Closing. The
Recordable Documents and Financing Statements will be delivered to the Title Agent, subject to
these instructions. The Title Agent is hereby authorized to hold the Recordable Documents and
Financing Statements in its offices in Minneapolis, Minnesota.
B. Conditions to Closing.
1. Each of the Recordable Documents and Financing Statements shall have
been delivered to the Title Agent, in final form and fully executed and acknowledged (if
required), with all exhibits completed and attached. The Title Agent is hereby authorized and
directed to date the Recordable Documents, if required, to complete the blanks (if any) with
appropriate recording references, and to attach the legal description of the Property, if necessary.
2. The Fiscal Agent shall have received and the Title Company shall have
received (or made arrangements to receive) funds sufficient to pay all costs of Closing, including
all title premiums and recording costs that are required to be paid through the Title Company’s
escrow account as shown on a final settlement statement (the “Funds”) and shall be prepared to
disburse the Funds.
3. All of the conditions to the delivery and recordation of documents by
parties other than Controlling Person Counsel shall have been satisfied or waived.
4. The Title Agent on behalf of Title Company shall, as of the time of
Closing, be unconditionally and irrevocably prepared to issue a title insurance policy in the form
set forth on Schedule 3 attached hereto (subject only to the Title Agent’s undertaking to record
the Recordable Documents), and shall agree to cover any “gap” from the date and time of
Closing to the date and time of recording of the Recordable Documents.
C. Closing.
When Controlling Person Counsel so instructs, the Funds will be disbursed and
the Title Agent shall record or deliver to the appropriate filing office for recording the
Recordable Documents in the order in which they are listed on Schedule 1 and shall inform
Controlling Person Counsel when the Recordable Documents have been duly recorded. The
Title Agent shall file the Financing Statements in the order listed on Schedule 2 promptly after
Closing.
D. Expiration of Escrow. These escrow instructions shall expire on July 8, 2022, at
5:00 PM Eastern. If by that time, the parties are not in a position for Closing, the Title Agent
shall return each of the Recordable Documents and Financing Statements to the party that
delivered it.
3
4853-6034-4871.2
E. Post-Closing. The Title Agent on behalf of Title Company agrees to provide an
update to the title insurance policy issued in connection with the Closing in connection with each
draw of loan proceeds in the form attached hereto as Schedule 4.
[Signature on Following Page]
S-1
4853-6034-4871.2
Please confirm receipt of this letter and your acceptance of these escrow instructions by
executing the attached acknowledgment.
KUTAK ROCK LLP, Controlling Person Counsel
By: ______________________________________
S-2
4853-6034-4871.2
TITLE AGENT ACKNOWLEDGEMENT AND ACCEPTANCE
GUARANTY COMMERCIAL TITLE as agent for Old Republic National Title
Insurance Company acknowledges receipt of these instructions and undertakes the obligations
set forth herein.
GUARANTY COMMERCIAL TITLE
By: ______________________________________
Name:
Title:
Wendy Ethen
President
Schedule 1-1
4853-6034-4871.2
EXHIBIT A
LEGAL DESCRIPTION
Tract C, Registered Land Survey No. 1365, Hennepin County, Minnesota.
Being Registered land.
Schedule 1-1
4853-6034-4871.2
SCHEDULE 1
Recordable Documents
Official Records of Hennepin County, Minnesota
1.Memorandum of Ground Lease by and between East Edina Housing Foundation and
4040 West 70th Street Apartments, LP
2.Site Improvement Performance Agreement by and between City of Edina, Minnesota and
4040 West 70th Street Apartments, LP (as successor to Cornelia View Apartments, LLC)
3.Nine Mile Creek Watershed Declaration by 4040 West 70th Street Apartments, LP in
favor of the Nine Mile Creek Watershed District
4.Regulatory Agreement among Hennepin County Housing and Redevelopment Authority,
U.S. Bank Trust Company, National Association, as fiscal agent, and 4040 West 70th
Street Apartments, LP
5.Memorandum of Redevelopment Agreement by and between the Housing and
Redevelopment Authority of Edina, Minnesota and 4040 West 70th Street Apartments, LP
6.Declaration of Covenants and Restrictions (Affordable Housing) by 4040 West 70th
Street Apartments, LP, in favor of the Housing and Redevelopment Authority of Edina,
Minnesota
7.Assessment Agreement by and between Housing and Redevelopment Authority of Edina,
Minnesota and 4040 West 70th Street Apartments
8.Leasehold Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture
Filing by 4040 West 70th Street Apartments, LP for the benefit of Hennepin County
Housing and Redevelopment Authority
9.Assignment of Mortgage and Funding Loan Documents by Hennepin County Housing
and Redevelopment Authority to U.S. Bank Trust Company, National Association
10.UCC-1 Financing Statement designating 4040 West 70th Street Apartments, LP, as
debtor, and U.S. Bank Trust Company, National Association, as fiscal agent, as secured
party, and Hennepin County Housing and Redevelopment Authority, as assignor secured
party
11.Combination Leasehold Mortgage, Assignment of Leases and Rents, Security
Agreement, and Fixture Statement by 4040 West 70th Street Apartments, LP in favor of
the Housing and Redevelopment Authority of Edina, Minnesota
12.Subordination Agreement by and among, U.S. Bank Trust Company, National
Association, as fiscal agent, the Housing and Redevelopment Authority of Edina,
Minnesota and 4040 West 70th Street Apartments, LP
Schedule 1-2
4853-6034-4871.2
13.Request for Notice of Foreclosure by Housing and Redevelopment Authority of Edina,
Minnesota
14.Combination Leasehold Mortgage, Assignment of Leases and Rents, Security
Agreement, and Fixture Financing Statement (Metropolitan Council Livable
Communities Demonstration Account (LCDA)) by 4040 West 70th Street Apartments, LP
for the benefit of the City of Edina
15.Subordination Agreement by and among, U.S. Bank Trust Company, National
Association, as fiscal agent, the City of Edina and 4040 West 70th Street Apartments, LP
(LCDA)
16.Request for Notice of Foreclosure by City of Edina
17.Combination Leasehold Mortgage, Assignment of Leases and Rents, Security
Agreement, and Fixture Financing Statement (Metropolitan Council Local Housing
Incentives Account (LHIA)) by the Partnership for the benefit of the City
18.Subordination Agreement by and among, U.S. Bank Trust Company, National
Association, as fiscal agent, the City of Edina and 4040 West 70th Street Apartments, LP
(LHIA)
19.Request for Notice of Foreclosure by City of Edina
20.Combination Mortgage, Assignment of Rents, Security Agreement, and Fixture
Financing Statement made by the Partnership in favor of the Hennepin County Housing
and Redevelopment Authority (AHIF)
21.Declaration of Covenants and Restrictions by 4040 West 70th Street Apartments, LP in
favor of Hennepin County Housing and Redevelopment Authority (AHIF)
22.Subordination Agreement by and among, U.S. Bank Trust Company, National
Association, as fiscal agent, the Hennepin County Housing and Redevelopment Authority
and 4040 West 70th Street Apartments, LP (AHIF)
Schedule 2-1
4853-6034-4871.2
SCHEDULE 2
Financing Statements
Minnesota Secretary of State
1.UCC-1 Financing Statement designating 4040 West 70th Street Apartments, LP, as
debtor, and U.S. Bank Trust Company, National Association, as fiscal agent, and
Hennepin County Housing and Redevelopment Authority, as secured parties (First
Mortgage)
2.UCC-1 Financing Statement designating Edina Affordable Housing, LLC, as debtor, and
Allianz Life Insurance Company of North America, as secured party (Partnership Pledge)
3.UCC-1 Financing Statement designating Ecumen Edina Affordable Housing, LLC, as
debtor, and Allianz Life Insurance Company of North America, as secured party
(Partnership Pledge)
4.UCC-1 Financing Statement designating Cornelia View Developers, LLC, as debtor, and
Allianz Life Insurance Company of North America, as secured party (Developer Pledge)
5.UCC-1 Financing Statement designating Hennepin County Housing and Redevelopment
Authority, as debtor, and U.S. Bank Trust Company, National Association, as fiscal
agent, as secured party (Funding Loan Agreement)
Schedule 3-1
4853-6034-4871.2
SCHEDULE 3
Pro Forma Loan Title Policy
LOAN POLICY OF TITLE INSURANCE
Issued by
Old Republic National Title Insurance Company
SCHEDULE A
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Loan Policy (6-17-06)
Schedule A Page 1
Name and Address of Title Insurance Company:
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
400 2nd Avenue South, Minneapolis, MN
File No.: 65874 Policy No.: Proforma 65874 LP
Issued with Policy No. Proforma 65874 OP
Loan No.:
Address Reference:4040 W. 70th Street, Edina, MN 55435
Amount of Insurance: $25,160,000.00 Premium: $100.00
Date of Policy: Date and Time of Recording
1.Name of Insured:
U.S. Bank Trust Company, National Association, as fiscal agent, its successors and/or assigns as their
interests may appear
2.The estate or interest in the Land that is encumbered by the Insured Mortgage is:
Title to the Leasehold estate or interest in the land is at the Effective Date vested in: 4040 West 70th Street
Apartments, LP, a Minnesota limited partnership, by virtue of a Ground Lease Agreement dated _, between
East Edina Housing Foundation, a Minnesota non-profit corporation and 4040 West 70th Street
Apartments, LP, a Minnesota limited partnership. Said Lease is evidenced of record by Memorandum of
Lease dated _, filed _, as Document No. _.
3.Title is vested in:
East Edina Housing Foundation, a Minnesota non-profit corporation
4.The Insured Mortgage and its assignments, if any, are described as follows:
Leasehold Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing dated July 1,
2022, filed ______________, as Document No. _______________, to secure indebtedness in the amount of
$25,160,000.00 and any other sums which may become due and payable under the terms thereof, executed
by 4040 West 70th Street Apartments, LP, a Minnesota limited partnership, as mortgagor, to Hennepin
County Housing Finance Agency, as mortgagee.
As assigned by that certain Assignment of Mortgage and Funding Loan Documents dated as of
_____________, 2021 by Hennepin County Housing Finance Agency to U.S. Bank Trust Company, National
Association, as fiscal agent, dated July 1, 2022, filed ______________, as Document No. _______________.
5.The Land referred to in this policy is described as follows:
SEE ATTACHED EXHIBIT "A"
Issuing Agent:Guaranty Commercial Title, Inc.
Address:465 Nicollet Mall, Suite 230
Minneapolis, MN 55401 Countersigned By:
Phone:612-339-5813
Policy No.: Proforma 65874 LP
SCHEDULE A
Continued
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Loan Policy (6-17-06)
Schedule A Page 2
EXHIBIT "A"
Tract C, Registered Land Survey No. 1365, Hennepin County, Minnesota.
Being Registered land.
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Loan Policy (6-17-06)
Schedule B - Part I Page 3
LOAN POLICY OF TITLE INSURANCE
Issued by
Old Republic National Title Insurance Company
SCHEDULE B - PART I
File No.: 65874 Policy No.: Proforma 65874 LP
EXCEPTIONS FROM COVERAGE
Except as provided in Schedule B - Part II, this policy does not insure against loss or damage, and the Company will not
pay costs, attorneys' fees, or expenses that arise by reason of:
1.Taxes and special assessments for second half of year 2022 and thereafter, a lien not yet due and
payable. Taxes payable in first half of year 2022 and prior years are paid. PID No. 30-028-24-44-0004.
NOTE: There are no special assessments now a lien on said property.
2.Sanitary Sewer easement(s) over the Land as shown on the recorded plat of South Office Park First
Addition, and as shown on the recorded plat of Replat of Lot 2, Block 1, South Office Park First Addition,
as shown on that ALTA/NSPS Land Title Survey for Kimley-Horn & Associates by Christopher A. Terwedo,
ML No. 53536, dated June 20, 2022, last revised June 28, 2022.
3.Terms and conditions of City of Edina Resolution No. 2021-44, approving preliminary rezoning, filed July
07, 2021, as Document No. 5853667.
The resolution was filed a second time on July 7, 2021, as Document No. 5853782.
4.Terms and conditions of City of Edina Resolution No. 2021-96, approving final rezoning, filed December
08, 2021 as Document No. 5904203.
5.Terms and conditions of a Memorandum of Ground Lease dated _______________, filed _______________
as Document No. _______________, referring to that certain unrecorded Ground Lease Agreement by and
between East Edina Housing Foundation, a Minnesota non-profit corporation, as lessor, and 4040 West
70th Street Apartments, LP, a Minnesota limited partnership, as lessee, dated _____________.
6.Terms and conditions of Site Improvement Performance Agreement dated October 19, 2021, filed
_______________ as Document No. _______________, by and between Housing and Redevelopment
Authority of Edina, Minnesota and 4040 West 70th Street Apartments, LP, a Minnesota limited partnership.
7.Terms and conditions of Declaration dated _______________, filed _______________ as Document No.
_______________, by 4040 West 70th Street Apartments, LP, a Minnesota limited partnership in favor of
Nine Mile Creek Watershed District.
8.Regulatory Agreement dated ______________, filed ______________, as Document No. _______________,
by and among Hennepin County Housing and Redevelopment Authority, U.S. Bank Trust Company,
National Association, and 4040 West 70th Street Apartments, LP, a Minnesota limited partnership.
Policy No.: Proforma 65874 LP
SCHEDULE B - PART I
Continued
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Loan Policy (6-17-06)
Schedule B - Part I Page 4
9.Terms and conditions of a Memorandum of Redevelopment Agreement dated _______________, filed
_______________ as Document No. _______________, referring to that certain unrecorded Redevelopment
Agreement by and between Housing and Redevelopment Authority of Edina, Minnesota and 4040 West
70th Street Apartments, LP, a Minnesota limited partnership, dated _____________.
10.Terms and conditions of Declaration of Covenants and Restrictions (Affordable Housing) dated
_______________, filed _______________ as Document No. _______________, by 4040 West 70th Street
Apartments, LP, a Minnesota limited partnership.
11.Terms and conditions of Assessment Agreement dated _______________, filed _______________ as
Document No. _______________, by and between Housing and Redevelopment Authority of Edina,
Minnesota and 4040 West 70th Street Apartments, LP, a Minnesota limited partnership.
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Loan Policy (6-17-06)
Schedule B - Part II Page 5
LOAN POLICY OF TITLE INSURANCE
Issued by
Old Republic National Title Insurance Company
SCHEDULE B - PART II
File No.: 65874 Policy No.: Proforma 65874 LP
In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company
insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:
1.UCC-1 Financing Statement filed __________ as Document No. __________ between 4040 West 70th
Street Apartments, LP, debtor and U.S. Bank Trust Company, as secured party.
2.Combination Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture
Financing Statement (HRA) dated ______________, filed ______________, as Document No.
_______________, to secure indebtedness in the amount of $1,336,901.00 and any other sums which may
become due and payable under the terms thereof, executed by 4040 West 70th Street Apartments, LP, a
Minnesota limited partnership, as mortgagor, to Housing and Redevelopment Authority of Edina,
Minnesota, as mortgagee.
As subordinated by Subordination Agreement (HRA) dated ______________, filed ______________, as
Document No. _______________, by and among U.S. Bank Trust Company, National Association, Housing
and Redevelopment Authority of Edina, Minnesota, and 4040 West 70th Street Apartments, LP, a
Minnesota limited partnership.
3.Request for Notice of Foreclosure dated ______________, filed ______________, as Document No.
_______________, by Housing and Redevelopment Authority of Edina, Minnesota.
4.Combination Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture
Financing Statement (LCDA) dated ______________, filed ______________, as Document No.
_______________, to secure indebtedness in the amount of $661,550.00 and any other sums which may
become due and payable under the terms thereof, executed by 4040 West 70th Street Apartments, LP, a
Minnesota limited partnership, as mortgagor, to City of Edina, Minnesota, as mortgagee.
As subordinated by Subordination Agreement (LCDA) dated ______________, filed ______________, as
Document No. _______________, by and among U.S. Bank Trust Company, National Association, City of
Edina, Minnesota, and 4040 West 70th Street Apartments, LP, a Minnesota limited partnership.
5.Request for Notice of Foreclosure dated ______________, filed ______________, as Document No.
_______________, by City of Edina, Minnesota.
6.Combination Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture
Financing Statement (LHIA) dated ______________, filed ______________, as Document No.
_______________, to secure indebtedness in the amount of $712,714.00 and any other sums which may
become due and payable under the terms thereof, executed by 4040 West 70th Street Apartments, LP, a
Minnesota limited partnership, as mortgagor, to City of Edina, Minnesota, as mortgagee.
As subordinated by Subordination Agreement (LHIA) dated ______________, filed ______________, as
Document No. _______________, by and among U.S. Bank Trust Company, National Association, City of
Policy No.: Proforma 65874 LP
SCHEDULE B - PART II
Continued
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Loan Policy (6-17-06)
Schedule B - Part II Page 6
Edina, Minnesota, and 4040 West 70th Street Apartments, LP, a Minnesota limited partnership.
7.Request for Notice of Foreclosure dated ______________, filed ______________, as Document No.
_______________, by City of Edina, Minnesota.
8.Combination Mortgage, Assignment of Rents, Security Agreement, and Fixture Financing Statement
(AHIF) dated ______________, filed ______________, as Document No. _______________, to secure
indebtedness in the amount of $865,000.00 and any other sums which may become due and payable
under the terms thereof, executed by 4040 West 70th Street Apartments, LP, a Minnesota limited
partnership, as mortgagor, to Hennepin County Housing and Redevelopment Authority, as mortgagee.
As subordinated by Subordination Agreement (AHIF) dated ______________, filed ______________, as
Document No. _______________, by and among U.S. Bank Trust Company, National Association,
Hennepin County Housing and Redevelopment Authority, and 4040 West 70th Street Apartments, LP, a
Minnesota limited partnership.
9.Terms and conditions of Declaration of Covenants and Restrictions (AHIF) dated _______________, filed
_______________ as Document No. _______________, by 4040 West 70th Street Apartments, LP, a
Minnesota limited partnership.
Copyright 2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 3.2-06 (Zoning - Land Under Development)
Adopted 04-02-12 Page 1 of 2
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.For purposes of this endorsement:
a."Improvement" means a building, structure, road, walkway, driveway, curb, subsurface utility or
water well existing at Date of Policy or to be built or constructed according to the Plans that is or
will be located on the Land, but excluding crops, landscaping, lawns, shrubbery, or trees.
b."Plans" means those site and elevation plans made by Pope Architects, Inc. dated May 4, 2022,
designated as Commission No. 75244-20067 consisting of 163 sheets.
2.The Company insures against loss or damage sustained by the Insured in the event that, at Date of
Policy
a.according to applicable zoning ordinances and amendments, the Land is not classified Zone
PUD-22 (Planned Unit Development-22);
b.the following use or uses are not allowed under that classification: senior affordable multi-family
housing
c.There shall be no liability under paragraph 2.b. if the use or uses are not allowed as the result of
any lack of compliance with any condition, restriction, or requirement contained in the zoning
ordinances and amendments, including but not limited to the failure to secure necessary consents
or authorizations as a prerequisite to the use or uses. This paragraph 2.c. does not modify or limit
the coverage provided in Covered Risk 5.
3.The Company further insures against loss or damage sustained by the Insured by reason of a final
decree of a court of competent jurisdiction either prohibiting the use of the Land, with any existing
Improvement, as specified in paragraph 2.b.or requiring the removal or alteration of the Improvement,
because of a violation of the zoning ordinances and amendments in effect at Date of Policy with respect
to any of the following matters:
a.Area, width, or depth of the Land as a building site for the Improvement
b.Floor space area of the Improvement
c.Setback of the Improvement from the property lines of the Land
d.Height of the Improvement, or
e.Number of parking spaces.
4.There shall be no liability under this endorsement based on:
a.the invalidity of the zoning ordinances and amendments until after a final decree of a court of
competent jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses;
b.the refusal of any person to purchase, lease or lend money on the Title covered by this policy.
Copyright 2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 3.2-06 (Zoning - Land Under Development)
Adopted 04-02-12 Page 2 of 2
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of
the terms and provisions of the policy,(ii)modify any prior endorsements,(iii)extend the Date of Policy, or
(iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is
inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this
endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
Date:
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 6-06 (Variable Rate Mortgage)
Revised 10/16/08
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of:
1.The invalidity or unenforceability of the lien of the Insured Mortgage resulting from its provisions
that provide for changes in the rate of interest.
2.Loss of priority of the lien of the Insured Mortgage as security for the unpaid principal balance of
the loan, together with interest as changed in accordance with the provisions of the Insured
Mortgage, which loss of priority is caused by the changes in the rate of interest.
"Changes in the rate of interest", as used in this endorsement, shall mean only those changes in the rate
of interest calculated pursuant to the formula provided in the loan documents secured by the Insured
Mortgage at Date of Policy.
This endorsement does not insure against loss or damage based upon:
1.usury, or
2.any consumer credit protection or truth in lending law.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 8.1-06 (Environmental Protection Lien)
Adopted 6/17/06
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued By
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The insurance afforded by this endorsement is only effective if the Land is used or is to be used primarily
for residential purposes.
The Company insures against loss or damage sustained by the Insured by reason of lack of priority of the
lien of the Insured Mortgage over
(a)any environmental protection lien that, at Date of Policy, is recorded in those records
established under state statutes at Date of Policy for the purpose of imparting constructive
notice of matters relating to real property to purchasers for value and without Knowledge, or
is filed in the records of the clerk of the United States district court for the district in which the
Land is located, except as set forth in Schedule B; or
(b)any environmental protection lien provided by any state statute in effect at Date of Policy,
except environmental protection liens provided by the following state statutes:
Minnesota Statute Section 514.672.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 9.7-06
(Restrictions, Encroachments, Minerals - Land Under Development – Loan Policy)
Adopted 04-02-12
Technical Correction 08-01-16
Page 1 of 2
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.The insurance provided by this endorsement is subject to the exclusions in Section 5 of this
endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in
Schedule B, and the Conditions in the policy.
2.For purposes of this endorsement only:
a."Covenant" means a covenant, condition, limitation or restriction in a document or instrument in
effect at Date of Policy.
b."Future Improvement" means a building, structure, road, walkway, driveway, curb, lawn,
shrubbery or trees to be constructed on or affixed to the Land in the locations according to the
Plans and that by law will constitute real property.
c."Improvement" means an improvement, including any lawn, shrubbery, or trees, affixed to either
the Land or adjoining land at Date of Policy that by law constitutes real property.
d."Plans" means the survey, site and elevation plans or other depictions or drawings prepared by
Pope Architects, Inc. dated May 4, 2022, designated as Commission No. 75244-20067
consisting of 163 sheets.
3.The Company insures against loss or damage sustained by the Insured by reason of:
a.A violation of a Covenant that:
i.divests, subordinates, or extinguishes the lien of the Insured Mortgage,
ii.results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage,
or
iii.causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the
Indebtedness;
4.The Company insures against loss or damage sustained by reason of:
a.An encroachment of:
i.an Improvement located on the Land at Date of Policy or a Future Improvement, onto
adjoining land or onto that portion of the Land subject to an easement; or
ii.an Improvement located on adjoining land onto the Land at Date of Policy,
unless an exception in Schedule B of the policy identifies the encroachment otherwise insured against
in Sections 4.a.i. or 4.a.ii.;
b.Damage to an Improvement located on the Land at Date of Policy or a Future Improvement:
i.that encroaches onto that portion of the Land subject to an easement excepted in Schedule
B, which damage results from the exercise of the right to maintain the easement for the
purpose for which it was granted or reserved; or
ii.resulting from the future exercise of a right to use the surface of the Land for the extraction
or development of minerals or any other subsurface substances excepted from the
description of the Land or excepted in Schedule B.
Copyright 2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 9.7-06
(Restrictions, Encroachments, Minerals - Land Under Development – Loan Policy)
Adopted 04-02-12
Technical Correction 08-01-16
Page 2 of 2
5.This endorsement does not insure against loss or damage (and the Company will not pay costs,
attorneys' fees, or expenses) resulting from:
a.any Covenant contained in an instrument creating a lease;
b.any Covenant relating to obligations of any type to perform maintenance, repair, or remediation on
the Land;
c.except as provided in Section 3.d, any Covenant relating to environmental protection of any kind
or nature, including hazardous or toxic matters, conditions, or substances;
d.contamination, explosion, fire, vibration, fracturing, earthquake or subsidence; or
e.negligence by a person or an Entity exercising a right to extract or develop minerals or other
subsurface substances.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of
Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 13.1-06 (Leasehold - Loan)
Revised 04-02-12
Page 1 of 2
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.As used in this endorsement, the following terms shall mean:
a."Evicted" or "Eviction": (a) the lawful deprivation, in whole or in part, of the right of possession insured
by this policy, contrary to the terms of the Lease or (b) the lawful prevention of the use of the Land or
the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case as a
result of a matter covered by this policy.
b."Lease": the lease described in Schedule A.
c."Leasehold Estate": the right of possession granted in the Lease for the Lease Term.
d."Lease Term": the duration of the Leasehold Estate, as set forth in the Lease, including any renewal
or extended term if a valid option to renew or extend is contained in the Lease.
e."Personal Property": property, in which and to the extent the Insured has rights, located on or affixed
to the Land on or after Date of Policy that by law does not constitute real property because (i) of its
character and manner of attachment to the Land and (ii) the property can be severed from the Land
without causing material damage to the property or to the Land.
f."Remaining Lease Term": the portion of the Lease Term remaining after the Tenant has been
Evicted.
g."Tenant": the tenant under the Lease and, after acquisition of all or any part of the Title in accordance
with the provisions of Section 2 of the Conditions of the policy, the Insured Claimant.
h."Tenant Leasehold Improvements": Those improvements, in which and to the extent the Insured has
rights, including landscaping, required or permitted to be built on the Land by the Lease that have
been built at the Tenant's expense or in which the Tenant has an interest greater than the right to
possession during the Lease Term.
2.Valuation of Estate or Interest Insured:
If in computing loss or damage it becomes necessary to value the Title, or any portion of it, as the result of
an Eviction of the Tenant, then, as to that portion of the Land from which the Tenant is Evicted, that value
shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any Tenant Leasehold
Improvements existing on the date of the Eviction. The Insured Claimant shall have the right to have the
Leasehold Estate and the Tenant Leasehold Improvements affected by a defect insured against by the policy
valued either as a whole or separately. In either event, this determination of value shall take into account
rent no longer required to be paid for the Remaining Lease Term.
3.Additional items of loss covered by this endorsement:
a.If the Insured acquires all or any part of the Title in accordance with the provisions of Section 2 of the
Conditions of this policy and thereafter is Evicted, the following items of loss, if applicable to that
portion of the Land from which the Insured is Evicted shall be included, without duplication, in
computing loss or damage incurred by the Insured, but not to the extent that the same are included in
the valuation of the Title determined pursuant to Section 2 of this endorsement, any other
endorsement to the policy, or Section 8(a)(iii) of the Conditions:The reasonable cost of (i) removing
and relocating any Personal Property that the Insured has the right to remove and relocate, situated
on the Land at the time of Eviction, (ii) transportation of that Personal Property for the initial one
hundred miles incurred in connection with the relocation, (iii) repairing the Personal Property
Copyright 2006-2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 13.1-06 (Leasehold - Loan)
Revised 04-02-12
Page 2 of 2
damaged by reason of the removal and relocation, and (iv) restoring the Land to the extent damaged
as a result of the removal and relocation of the Personal Property and required of the Insured solely
because of the Eviction.
b.Rent or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of
the Leasehold Estate may be obligated to pay to any person having paramount title to that of the
lessor in the Lease.
c.The amount of rent that, by the terms of the Lease, the Insured must continue to pay to the lessor
after Eviction with respect to the portion of the Leasehold Estate and Tenant Leasehold
Improvements from which the Insured has been Evicted.
d.The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease
or sublease permitted by the Lease and made by the Tenant as lessor of all or part of the Leasehold
Estate or the Tenant Leasehold Improvements.
e.Damages caused by the Eviction that the Insured is obligated to pay to lessees or sublessees on
account of the breach of any lease or sublease permitted by the Lease and made by the Tenant as
lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements.
f.The reasonable cost to obtain land use, zoning, building and occupancy permits, architectural and
engineering services and environmental testing and reviews for a replacement leasehold reasonably
equivalent to the Leasehold Estate.
g.If Tenant Leasehold Improvements are not substantially completed at the time of Eviction, the actual
cost incurred by the Insured, less the salvage value, for the Tenant Leasehold Improvements up to
the time of Eviction. Those costs include costs incurred to obtain land use, zoning, building and
occupancy permits, architectural and engineering services, construction management services,
environmental testing and reviews, and landscaping.
This endorsement does not insure against loss, damage or costs of remediation (and the Company will not pay
costs, attorneys' fees or expenses) resulting from environmental damage or contamination.This endorsement is
issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of
the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express
provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the
terms and provisions of the policy and of any prior endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2011 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 14-06 (Future Advance - Priority)
Revised 2-3-11 Page 1 of 2
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.The insurance for Advances added by Sections 2 and 3 of this endorsement is subject to the
exclusions in Section 4 of this endorsement and the Exclusions from Coverage in the Policy, except
Exclusion 3(d), the provisions of the Conditions, and the exceptions contained in Schedule B.
a."Agreement," as used in this endorsement, shall mean the note or loan agreement, the
repayment of Advances under which is secured by the Insured Mortgage.
b."Advance," as used in this endorsement, shall mean only an advance of principal made after the
Date of Policy as provided in the Agreement, including expenses of foreclosure, amounts
advanced pursuant to the Insured Mortgage to pay taxes and insurance, assure compliance with
laws, or to protect the lien of the Insured Mortgage before the time of acquisition of the Title, and
reasonable amounts expended to prevent deterioration of improvements, together with interest
on those advances.
c."Changes in the rate of interest," as used in this endorsement, shall mean only those changes in
the rate of interest calculated pursuant to a formula provided in the Insured Mortgage or the
Agreement at Date of Policy.
2.The Company insures against loss or damage sustained by the Insured by reason of:
a.The invalidity or unenforceability of the lien of the Insured Mortgage as security for each
Advance.
b.The lack of priority of the lien of the Insured Mortgage as security for each Advance over any lien
or encumbrance on the Title.
c.The invalidity or unenforceability or lack of priority of the lien of the Insured Mortgage as security
for the Indebtedness, Advances and unpaid interest resulting from (i) re-Advances and
repayments of Indebtedness, (ii) earlier periods of no indebtedness owing during the term of the
Insured Mortgage, or (iii) the Insured Mortgage not complying with the requirements of state law
of the state in which the Land is located to secure Advances.
3.The Company also insures against loss or damage sustained by the Insured by reason of:
a.The invalidity or unenforceability of the lien of the Insured Mortgage resulting from any provisions
of the Agreement that provide for (i) interest on interest, (ii) changes in the rate of interest, or (iii)
the addition of unpaid interest to the Indebtedness.
b.Lack of priority of the lien of the Insured Mortgage as security for the Indebtedness, including any
unpaid interest that was added to principal in accordance with any provisions of the Agreement,
interest on interest, or interest as changed in accordance with the provisions of the Insured
Mortgage, which lack of priority is caused by (i) changes in the rate of interest, (ii) interest on
interest, or (iii) increases in the Indebtedness resulting from the addition of unpaid interest.
4.This endorsement does not insure against loss or damage (and the Company will not pay costs,
attorneys' fees, or expenses) resulting from:
Copyright 2006-2011 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 14-06 (Future Advance - Priority)
Revised 2-3-11 Page 2 of 2
a.The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as security for
any Advance made after a Petition for Relief under the Bankruptcy Code (11 U.S.C.) has been
filed by or on behalf of the mortgagor;
b.The lien of real estate taxes or assessments on the Title imposed by governmental authority
arising after Date of Policy;
c.The lack of priority of the lien of the Insured Mortgage as security for any Advance to a federal
tax lien, which Advance is made after the earlier of (i) actual knowledge of the Insured that a
federal tax lien was filed against the mortgagor, or (ii) the expiration, after notice of a federal tax
lien filed against the mortgagor, of any grace period for making disbursements with priority over
the federal tax lien provided in the Internal Revenue Code (26 U.S.C.);
d.Any federal or state environmental protection lien; or
e.Usury, or any consumer credit protection or truth-in-lending law; or
f.Intentionally deleted.
5.The Indebtedness includes Advances.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 17-06 (Access and Entry)
Adopted 6/17/06
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued By
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured if, at Date of Policy (i) the Land
does not abut and have both actual vehicular and pedestrian access to and from Valley View Road (the
"Street"), (ii) the Street is not physically open and publicly maintained, or (iii) the Insured has no right to
use existing curb cuts or entries along that portion of the Street abutting the Land.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify
any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of
Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 17.2-06 (Utility Access)
Adopted 10/16/08
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of the lack of a right of
access to the following utilities or services: (CHECK ALL THAT APPLY)
☒Water service ☒Natural gas service ☒Telephone service
☒Electrical power service ☒Sanitary sewer ☒Storm water drainage
☐☐☐
either over, under or upon rights-of-way or easements for the benefit of the Land because of:
(1)a gap or gore between the boundaries of the Land and the rights-of-way or easements;
(2)a gap between the boundaries of the rights-of-way or easements ; or
(3)a termination by a grantor, or its successor, of the rights-of-way or easements.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 18-06 (Single Tax Parcel)
Adopted 6/17/06
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued By
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of the Land being taxed
as part of a larger parcel of land or failing to constitute a separate tax parcel for real estate taxes.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 22-06 (Location)
Adopted 6/17/06
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued By
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of the failure of a
brick building, known as 4040 W. 70th Street, Edina, MN 55435, to be located on the Land at Date of
Policy.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of
Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 24-06 (Doing Business)
Adopted 10/16/08
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
Old Republic National Title Insurance Company
The Company insures against loss or damage sustained by the Insured by reason of the invalidity or
unenforceability of the lien of the Insured Mortgage on the ground that making the loan secured by the
Insured Mortgage constituted a violation of the "doing - business" laws of the State where the Land is
located because of the failure of the Insured to qualify to do business under those laws.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 25-06 (Same as Survey)
Adopted 10/16/08
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
Old Republic National Title Insurance Company
The Company insures against loss or damage sustained by the Insured by reason of the failure of the
Land as described in Schedule A to be the same as that identified on the survey made by Christopher A.
Terwedo of Egan, Field & Nowak, Inc., dated June 20, 2022, last revised June 28, 2022, job number
3955.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 26-06 (Subdivision)
Adopted 10/16/08
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of the failure of the
Land to constitute a lawfully created parcel according to the subdivision statutes and local subdivision
ordinances applicable to the Land.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 27-06 (Usury)
Adopted 10/16/08
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
Old Republic National Title Insurance Company
The Company insures against loss or damage sustained by the Insured by reason of the invalidity or
unenforceability of the lien of the Insured Mortgage as security for the Indebtedness because the loan
secured by the Insured Mortgage violates the usury law of the state where the Land is located.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2015 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 28.3-06
(Encroachments - Boundaries and Easements -
Described Improvements and Land Under Development)
Adopted 04-02-15
Page 1 of 2
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.The insurance provided by this endorsement is subject to the exclusions in Section 4 of this
endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in
Schedule B, and the Conditions in the policy.
2.For purposes of this endorsement only:
(a)"Improvement" means a building, structure, or paved area, including any road, walkway, parking
area, driveway, or curb located on the surface of the Land or the surface of adjoining land at Date
of Policy that by law constitutes real property.
(b)"Future Improvement" means any of the following to be constructed on the Land after Date of
Policy in the locations according to the Plans and that by law constitutes real property:
(i)a building;
(ii)a structure; or
(iii)a paved area, including any road, walkway, parking area, driveway, or curb.
(c)"Plans" mean the survey, site and elevation plans, or other depictions or drawings prepared by
Pope Architects, Inc.dated May 4, 2022, designated as Commission No. 75244-20067
consisting of 163 sheets.
3.The Company insures against loss or damage sustained by the Insured by reason of:
(a)An encroachment of any Improvement or Future Improvement located on the Land onto adjoining
land or onto that portion of the Land subject to an easement, unless an Exception in Schedule B
of the policy identifies the encroachment;
(b)An encroachment of any Improvement located on adjoining land onto the Land at Date of Policy,
unless an exception in Schedule B of the policy identifies the encroachment;
(c)Enforced removal of any Improvement or Future Improvement located on the Land as a result of
an encroachment by the Improvement or Future Improvement onto any portion of the Land
subject to any easement, in the event that the owners of the easement shall, for the purpose of
exercising the right of use or maintenance of the easement, compel removal or relocation of the
encroaching Improvement or Future Improvement; or
(d)Enforced removal of any Improvement or Future Improvement located on the Land that
encroaches onto adjoining land.
4.Sections 3(c) and 3(d) of this endorsement do not insure against loss or damage (and the Company
will not pay costs, attorneys' fees, or expenses) resulting from the following Exceptions, if any, listed in
Schedule B: __________ (pending review of plans) NONE XXXXXXXXXXXXXXXXXXXX
Copyright 2015 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 28.3-06
(Encroachments - Boundaries and Easements -
Described Improvements and Land Under Development)
Adopted 04-02-15
Page 2 of 2
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the
terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv)
increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is
inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this
endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
Date:
Countersigned
Authorized Officer or Licensed Agent
Copyright 2006-2009 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 32-06 (Construction Loan - Loss of Priority)
Adopted 2-3-11 Page 1 of 2
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.Covered Risk 11(a) of this policy is deleted.
2.The insurance for Construction Loan Advances added by Section 3 of this endorsement is subject to
the exclusions in Section 4 of this endorsement and the Exclusions from Coverage in the Policy, the
provisions of the Conditions, and the exceptions contained in Schedule B. For the purposes of this
endorsement and each subsequent Disbursement Endorsement:
a."Date of Coverage" is ____________, (Date of Policy), unless the Company sets a different Date
of Coverage by an ALTA 33-06 Disbursement Endorsement issued at the discretion of the
Company.
b."Construction Loan Advance," shall mean an advance that constitutes Indebtedness made on or
before Date of Coverage for the purpose of financing in whole or in part the construction of
improvements on the Land.
c."Mechanic's Lien," shall mean any statutory lien or claim of lien, affecting the Title, that arises
from services provided, labor performed, or materials or equipment furnished.
3.The Company insures against loss or damage sustained by the Insured by reason of:
a.The invalidity or unenforceability of the lien of the Insured Mortgage as security for each
Construction Loan Advance made on or before the Date of Coverage;
b.The lack of priority of the lien of the Insured Mortgage as security for each Construction Loan
Advance made on or before the Date of Coverage, over any lien or encumbrance on the Title
recorded in the Public Records and not shown in Schedule B; and
c.The lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan
Advance made on or before the Date of Coverage over any Mechanic's Lien, if notice of the
Mechanic's Lien is not filed or recorded in the Public Records, but only to the extent that the
charges for the services, labor, materials or equipment for which the Mechanic's Lien is claimed
were designated for payment in the documents supporting a Construction Loan Advance
disbursed by or on behalf of the Insured on or before Date of Coverage.
4.This policy does not insure against loss or damage (and the Company will not pay costs, attorneys'
fees or expenses) by reason of any Mechanic's Lien arising from services, labor, material or
equipment:
a.furnished after Date of Coverage; or
b.not designated for payment in the documents supporting a Construction Loan Advance disbursed
by or on behalf of the Insured on or before Date of Coverage.
Copyright 2011 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 32-06 (Construction Loan - Loss of Priority)
Adopted 2-3-11 Page 2 of 2
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of
Policy or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Countersigned
Authorized Officer or Licensed Agent
Copyright 2012 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 38-06 (Mortgage Tax)
Adopted 12-03-12 Page 1 of 1
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.The insurance provided by this endorsement is subject to the exclusions in Sections 4 and 5 of this
endorsement, the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B,
and the Conditions in the policy.
2.For the purposes of this endorsement only, "Mortgage Tax" means a recordation, registration or related
tax or charge required to be paid when the Insured Mortgage is recorded in the Public Records.
3.Upon payment of any deficiency in the Mortgage Tax, including interest and penalties, by the Insured,
the Company insures against loss or damage sustained by the Insured by reason of:
a.the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness
resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax; or
b.the lack of priority of the lien of the Insured Mortgage as security for the Indebtedness resulting from
the failure to pay, at the time of recording, any portion of the Mortgage Tax.
4.The Company does not insure against loss or damage (and the Company will not pay costs, attorneys'
fees, or expenses) resulting from the failure of the Insured to pay the Mortgage Tax deficiency, together
with interest and penalties.
5.The Company is not liable for the payment of any portion of the Mortgage Tax, including interest or
penalties.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of
the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy,
or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Date:
Countersigned
Authorized Officer or Licensed Agent
Copyright 2013 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
ALTA Endorsement 39-06
(Policy Authentication)
Adopted 04-02-2013
Page 1 of 1
ENDORSEMENT
Attached to Policy No. Proforma 65874 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
When the policy is issued by the Company with a policy number and Date of Policy, the Company will not
deny liability under the policy or any endorsements issued with the policy solely on the grounds that the
policy or endorsements were issued electronically or lack signatures in accordance with the Conditions.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of
the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or
(iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is
inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this
endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
Date:
Countersigned
Authorized Officer or Licensed Agent
File No. 65874
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
ENDORSEMENT
Attached to and forming a part of Policy No.: Proforma 65874 LP
of OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
Item 13 of the Conditions as shown on the cover of this policy is hereby deleted.
The total liability of the Company under said Policy and under this and any prior endorsements thereto
shall not exceed, in the aggregate, the amount of liability stated on the face of said policy as the same
may be specifically amended in dollar amount by this or any other endorsements, and the costs which
the Company is obligated to pay under the Conditions and Stipulations of the policy.
This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof
and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of
the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date
of the policy and any prior endorsements, nor does it increase the face amount thereof.
This Endorsement shall not be valid or binding until countersigned by an authorized signatory as
designated below.
By:
Countersigned:ISSUED BY:
GUARANTY COMMERCIAL TITLE, INC.
465 Nicollet Mall
Suite 230
Minneapolis, MN 55401
Authorized Signatory
File No. 65874
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
CONTIGUITY ENDORSEMENT
Attached to and forming a part of Policy No.: Proforma 65874 LP
of OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
The Company insures the insured against loss or damage which the insured shall sustain by
reason of the inaccuracy in the following assurance:
The Company assures the above named Insured that the land described in Schedule A of
this Policy constitutes one contiguous parcel and contains no gaps or gores.
The Company hereby insures said Insured against loss which said Insured shall sustain
in the event that the assurance shall prove to be incorrect.
This endorsement is made a part of the policy and is subject to all of the terms and provisions
thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither
modifies any of the terms and provisions of the policy and prior endorsements, nor does it
extend the effective date of the policy and any prior endorsements, nor does it increase the face
amount thereof.
This Endorsement shall not be valid or binding until countersigned by an authorized signatory
as designated below.
By:
Countersigned:ISSUED BY:
GUARANTY COMMERCIAL TITLE, INC.
465 Nicollet Mall
Suite 230
Minneapolis, MN 55401
Authorized Signatory
Schedule 4-1
4853-6034-4871.2
SCHEDULE 4
Form of Construction Loan Up-Date Endorsement
Copyright 2011 American Land Title Association. All rights reserved.
The use of this Form is restricted to ALTA licensees and ALTA members
in good standing as of the date of use. All other uses are prohibited.
Reprinted under license from the American Land Title Association.
ALTA Endorsement 33-06 (Disbursement)
Adopted 2-3-11
Page 1 of 1
ENDORSEMENT
Attached to Policy No. Proforma 66440 LP
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
1.The Date of Coverage is amended to ____________________.
a.The current disbursement is: $______
b.The aggregate amount, including the current disbursement, recognized by the Company as
disbursed by the Insured is: $________
2.Schedule A is amended as follows:
_____
3.Schedule B is amended as follows:
_____
_____
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of
Policy or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements.
Date:
Countersigned
Authorized Officer or Licensed Agent
Date: November 17, 2022 Agenda Item #: VI.C .
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:C ertific ate of C ompletion - Brainerd Enterpris es LLC
dba Mann T heatres
Ac tion
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO 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 Certificate of Completion for the scope of work required by B rainerd Entertainment, L L C dba
M ann T heatres.
I N TR O D U C TI O N:
T he fully restored and revitalized Edina T heater opened to the public on September 30 , 2022.
T he operator (B rainerd Entertainment, L L C dba Mann T heatres) will be seeking reimbursement for a portion of
their renovation expenses this fall. Reimbursement up to $351,000 is available in accordance with the September
7, 2022 forgivable loan agreement.
T his C ertificate of C ompletion is provided to recognize that the work has been completed and that loan proceeds
can be issued upon confirmation of costs.
S taff recommends that this C ertificate be executed.
AT TAC HME N T S:
Description
Certificate of Completion - Brainerd Entertainment
Edina Theater Revitalization Project
3911 West 50th Street Edina MN 55424
CERTIFICATE OF COMPLETION
WHEREAS, Brainerd Entertainment, LLC, a Minnesota limited liability company, dba Mann
Theatres (“the Borrower”), is the tenant of the facility on the property in the County of Hennepin
and State of Minnesota described on Exhibit A hereto and made a part hereof (the “Property”);
and
WHEREAS, the Property (shown in Exhibit A) is subject to the provisions of a certain
Loan Agreement (the “Agreement”), dated as of September 7, 2022, between the Borrower and
the Edina Housing and Redevelopment Authority; and
WHEREAS, the Borrower has fully and duly performed all of the covenants and conditions
of Borrower under the Agreement with respect to the completion of the Project (as defined in
the Agreement);
NOW, THEREFORE, it is hereby certified that all requirements of the Borrower under
the Agreement with respect to the completion of the Project have been completed and duly and
fully performed, and this instrument is to be conclusive evidence of the satisfactory termination
of the covenants and conditions of the Agreement as they relate to the completion of the Project.
All other covenants and conditions of the Agreement, including the covenants and conditions
related to the Loan, shall remain in effect and are not terminated hereby.
Dated this 17th day of November, 2022.
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By
James B. Hovland, Chair
And
James Pierce, Secretary
Exhibit A
Certificate of Completion
Property
The real property and interests in such property located in the County of Hennepin, State
of Minnesota and described as follows:
Common Address: 3911 West 50th Street
Legal Description
Parcel ID Number
1802824410052
Date: November 17, 2022 Agenda Item #: VI I.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:Loan Agreement with Edina C hamber of C ommerce Ac tion
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO 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 Loan Agreement with Edina Chamber of Commerce to establish the Edina Innovation Lab at 7201
M etro Avenue.
I N TR O D U C TI O N:
T his item pertains to funding to support renovation and re-occupancy of a portion of vacant commercial property.
T his type of funding is possible using the S PAR C program.
When completed, the space will host a small business development facility that hosts the E dina I nnovation L ab.
T his program will be operated by the Edina Chamber of Commerce.
T he H R A's special legal counsel has prepared a Loan Agreement based on the terms discussed in October. T he
terms have been modified to address concerns previously noted by the H R A B oard.
R epresentatives from the C hamber will present the proposal for H R A consideration. Staff has been working
collaboratively with the C hamber on this effort and recommends that the L oan Agreement be approved.
AT TAC HME N T S:
Description
Staff Report
Loan Agreement - Chamber of Commerce
Chamber letter - reques t for loan
Chamber pres entation - reques t for loan
November 17, 2022
Chair and Commissioners of Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Loan Agreement with the Edina Chamber of Commerce
Information / Background:
The City’s guiding documents promote a strong and vibrant business community. Vision Edina (page 10)
urges the City to take strategic actions to “ support the development of a start-up or entrepreneurial
climate in the city…” This Vision also encourages the community to “consider the inclusion of incubators or
co-working spaces …”.
Edina’s Comprehensive Plan (pages 10-15 and 10-16) sets several goals related to the business development
and entrepreneurism in Edina …
“… create a vibrant and attractive location for corporate headquarters, technology companies and
other businesses…”
“Retain, attract and support employment opportunities in innovative and creative industries…”
“Support strong public-private alliances…”
“Work with Hennepin County’s Open to Business to promote technical assistance services available
to small businesses”
While the Covid-19 pandemic and subsequent hybrid work environment has reshaped many aspects of the
business community, it is more important than ever to continue on with the promotion of a strong and
vibrant business community in Edina.
City staff has visited several comparable facilities and met with colleagues in nearby communities who are
working on similar efforts.
The Edina Chamber of Commerce has supported the Edina business community since 1972. The Chamber
intends to establish the Edina Innovation Lab to support businesses in Edina as they transition out of the
pandemic to grow and innovate. After a successful pilot program in a temporary facility, they are actively
engaged in a fundraising campaign to establish funds for operational expenses of the Innovation Lab.
Housing and Redevelopment Authority
Established 1974
STAFF REPORT Page 2
The Chamber considered several locations for the new program and selected an office building at 7201
Metro Boulevard. This 40-year old building is mostly vacant but is undergoing extensive remodeling and is
poised to become fully leased in 2023. The owners have modernized the common areas to be more
appealing to emerging companies and their employees. The individual tenant suites are still under
construction.
The high cost of construction created a hurdle for the Chamber of Commerce and the Edina Innovation
Lab. The Chamber has been unable to secure a traditional construction loan for the leased space. They have
requested the HRA provide an interest-bearing construction loan using available monies in the SPARC fund.
The SPARC fund is sourced from unallocated tax increment that expire in 2025. These monies can be used
for construction projects that create short-term or permanent jobs.
Evaluation:
Staff has worked collaboratively with the Chamber to shape this small business program. Terms of a
construction loan were negotiated with three intentional outcomes:
Provide funding to allow the program to be established and thrive
Structure the loan so that repaid funds can be used to establish a revolving loan fund to support
additional investment in the future
Create jobs and job opportunities
The general terms were discussed at the October 13, 2022 HRA Board meeting. The suggestions offered
and concerns raised were incorporated into the Loan Agreement.
The HRA’s special counsel – Dorsey and Whitney prepared a Draw Down Loan Agreement based on the
terms as modified.
The Board of the Chamber of Commerce is poised to execute construction contracts and the multi-year
lease by year end 2022 if the HRA provides the construction financing. Occupancy is expected in Q2 2023.
Staff Recommendation:
While this is the first time in recent history that the HRA has loaned monies to an independent business
organization, other Minnesota municipalities have provided business funding for many years.
The creation of the Edina Innovation Lab presents an opportunity for the HRA to actively promote
entrepreneurship and small business development in Edina. This one-time investment allows the program to
begin without ongoing operational support from the HRA.
Staff recommends approval of this Agreement.
DRAW-DOWN LOAN AGREEMENT
Between
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
And
EDINA CHAMBER OF COMMERCE ASSOCIATION, INC.
D/B/A EDINA INNOVATION LAB
for the
EDINA INNOVATION LAB PROJECT AT 7201 METRO BOULEVARD
________________________
Dated as of November 17, 2022
________________________
This Document Was Drafted By:
DORSEY & WHITNEY LLP (GIT)
Suite 1500
50 South Sixth Street
Minneapolis, Minnesota 55402
i
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS ............................................................................................................1
1.01. Definitions................................................................................................................1
ARTICLE 2 REPRESENTATIONS AND WARRANTIES ...........................................................4
2.01. HRA Representations...............................................................................................4
2.02. Borrower Representations ........................................................................................4
2.03. Use of Property ........................................................................................................5
2.04. Damage or Destruction ............................................................................................5
2.05. Submission and Approval of Evidence of Financing ..............................................5
ARTICLE 3 THE PROJECT ...........................................................................................................5
3.01. Timing; Scope of Work and Renovation Plans........................................................5
3.02. Certificate of Completion ........................................................................................6
3.03. Progress Reports ......................................................................................................6
3.04. Access to Property ...................................................................................................7
ARTICLE 4 DEFENSE OF CLAIMS; INSURANCE ....................................................................7
4.01. Defense of Claims ....................................................................................................7
4.02. Insurance ..................................................................................................................8
ARTICLE 5 DRAW-DOWN LOAN FOR REIMBURSEMENT OF EXPENSES ........................8
5.01. Development Costs ..................................................................................................8
5.02. Terms of the Loan; Loan for Qualified Costs. .........................................................8
5.03. Conditions Precedent to Provision of Loan Disbursement. .....................................9
5.04. Satisfaction of Conditions Precedent .......................................................................9
5.05. Forgiveness for Private Fundraising; Requirements ..............................................10
5.06. Forgiveness for Special Programming; Requirements ..........................................10
5.07. Loan Satisfaction ...................................................................................................12
5.08. Additional Conditions ............................................................................................12
5.09. Notice of Default....................................................................................................13
5.10 Legal and Administrative Expenses.......................................................................13
ARTICLE 6 PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER ..........................13
6.01. Transfer of Property and Assignment ....................................................................13
6.02. Termination of Limitations on Transfer ................................................................13
ii
ARTICLE 7 EVENT OF DEFAULT; FEES .................................................................................13
7.01. Events of Default ...................................................................................................13
7.02. Remedies on Default ..............................................................................................14
7.03. No Remedy Exclusive............................................................................................15
7.04. Waivers ..................................................................................................................15
7.05. Agreement to Pay Attorneys’ Fees ........................................................................15
ARTICLE 8 GENERAL PROVISIONS .......................................................................................16
8.01. Conflicts of Interest; HRA Representatives Not Individually Liable ....................16
8.02. Equal Employment Opportunity ............................................................................16
8.03. Restrictions on Use ................................................................................................16
8.04. Titles of Articles and Sections ...............................................................................16
8.05. Business Subsidies Act ..........................................................................................16
8.06. Term of Agreement ................................................................................................16
8.07. Provisions Surviving Termination .........................................................................17
ARTICLE 9 ADMINISTRATIVE PROVISIONS ........................................................................17
9.01. Notices and Demands ............................................................................................17
9.02. Counterparts ...........................................................................................................17
9.03. Binding Effect ........................................................................................................17
9.04. Severability ............................................................................................................17
9.05. Amendments, Changes and Modifications ............................................................18
9.06. Further Assurances and Corrective Instruments ....................................................18
9.07. Captions .................................................................................................................18
9.08. Applicable Law ......................................................................................................18
EXHIBIT A PROPERTY
EXHIBIT B GO-AHEAD LETTER
EXHIBIT C TENANT IMPROVEMENTS FOR THE PROJECT
EXHIBIT D SCOPE OF WORK; QUALIFIED COSTS
EXHIBIT E CERTIFICATE OF CONSTRUCTION COMPLETION
EXHIBIT F CERTIFICATE OF FORGIVENESS (PRIVATE FUNDRAISING)
EXHIBIT G CERTIFICATE OF FORGIVENESS (SPECIAL PROGRAMMING)
EXHIBIT H FORM OF MASTER NOTE
EXHIBIT I FORM OF REQUISITION CERTIFICATE
EXHIBIT J FORM OF SATISFACTION
DRAW-DOWN LOAN AGREEMENT
THIS Draw-Down Loan Agreement (this “Agreement”), made and entered into as of this
17th day of November, 2022, between the Edina Housing and Redevelopment Authority, a political
subdivision of the State of Minnesota (the “HRA”), and Edina Chamber of Commerce Association,
Inc., a Minnesota nonprofit corporation, d/b/a Edina Innovation Lab (the “Borrower”).
WITNESSETH:
WHEREAS, the building located at 7201 Metro Boulevard in the City of Edina, Minnesota
(the “Building”), was formerly part of the national corporate headquarters for Regis Corporation
until it was sold in 2019 to CREFIV-CCRP Metro Boulevard Edina, LLC (the “Owner”); and
WHEREAS, the Building has remained vacant since the sale in 2019; and
WHEREAS, significant investment is needed to transform the single-user office Building
into a facility that can successfully accommodate multiple tenants, and the re-occupancy of the
outdated Building was slowed by the COVID-19 pandemic; and
WHEREAS, the Owner is investing more than $7 million into the site to stabilize and
renovate the common areas in hopes of attracting new tenants, and each office floor of the Building
has been cleared and the common areas re-oriented to accommodate multiple tenants; and
WHEREAS, any tenants are responsible for reconstructing their respective suite; and
WHEREAS, the Borrower was established in 1972 and its mission is, in part, to advance
the general welfare and prosperity of Edina, Minnesota so that its citizens and all areas of its
business community have the ability to prosper; and
WHEREAS, the Borrower intends to: enter into a seven (7) year lease with the Owner (the
“Lease”); build out and reconstruct the unfinished suite #520 consisting of approximately 4,157
rentable square feet in the Building; and establish a new business accelerator-type program – the
Edina Innovation Lab – in the Building (the “Project”); and
WHEREAS, the Borrower intends to enter into contractual obligations with HGA
Architects for design services, MP Johnson Construction, Inc for general contracting, City Center
Real Estate Services, LLC for project management services and other vendors for related services,
materials and equipment to construct the Project; and
WHEREAS, the Borrower is hampered by the high costs to build out the unfinished space,
and without financial assistance from the HRA, the Borrower’s efforts to construct the Project
would not be possible; and
WHEREAS, execution of the Lease and construction contracts are contingent upon pledge
of financial support from the HRA;
WHEREAS, the HRA believes the Project is in the best interest of the City and desires to
assist in providing financial support for the Project; and
2
WHEREAS, pursuant to the temporary authority for use of increment granted by
Minnesota Statutes, Section 469.176, subdivision 4n (the “Act”), on October 28, 2021, the HRA
adopted, and on November 16, 2021, the City approved a written spending plan for unobligated
tax increment monies for the Southdale 2 TIF District, Pentagon Park TIF District, and 70th and
Cahill TIF District (the “Spending Plan”);
WHEREAS, pursuant to the Act, the HRA will, pursuant to the terms set forth herein,
provide a draw-down loan of unobligated tax increment revenue to the Borrower to assist in
financing the Project.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
obligations set forth in this Agreement, the parties hereto hereby agree as follows:
1
ARTICLE 1
Definitions
1.01. Definitions.
In this Agreement, unless a different meaning clearly appears from the context:
“Act” means Minnesota Statutes, Section 469.176, subdivision 4n.
“Agreement” means this Agreement, as the same may be from time to time modified,
amended or supplemented.
“Borrower” means Edina Chamber of Commerce Association, Inc., a Minnesota nonprofit
corporation, d/b/a Edina Innovation Lab.
“Building” means the building located at 7201 Metro Boulevard in the City of Edina,
Minnesota.
“Business Subsidies Act” means M.S., Sections 116J.993 through 116J.995.
“Certificate of Completion” means a certification in the form attached hereto as Exhibit E,
to be provided to the Borrower pursuant to this Agreement.
“Certificate of Forgiveness” means a certification in either the forms attached hereto in
Exhibit F, as it relates to private fundraising, or in Exhibit G, as it relates to Special Programming,
to be provided to the Borrower pursuant to this Agreement.
“Certificate of Satisfaction” means a certification in the form attached hereto in Exhibit J
to be provided to the Borrower pursuant to this Agreement.
“City” means the City of Edina, Minnesota.
“Construction Contract” means that certain agreement between Borrower and Contractor
for construction of the Project.
“Contractor” means MP Johnson Construction, Inc.
“County” means the Hennepin County, Minnesota.
“Default Notice” means written notice from the HRA to the Borrower setting forth the
Event of Default and the action required to remedy the same.
“Disbursement” shall mean any disbursement of the Loan effected, pursuant to one or more
draws, under this Agreement from the HRA to the Borrower, for the purpose of defraying the
Qualified Costs incidental to the construction of the Project.
“Disbursement Note” means the document requesting disbursements from the HRA of all
or part of the amount of the Note in substantially the form of Appendix A to Exhibit H attached
hereto.
2
“Event of Default” means as any of the events set forth in Section 7.01 hereof.
“Facility” means the portion of the Building the Borrower shall build out and reconstruct
and establish the Edina Innovation Lab.
“Go-Ahead Letter” means Developer’s letter to the HRA, substantially in the form attached
as Exhibit B stating that Developer is prepared to proceed with the construction of the Project.
“HRA” means the Edina Housing and Redevelopment Authority.
“Indemnified Parties” shall have the meaning set forth in Section 4.01 herein.
“Lease” means the lease agreement between the Owner and the Borrower.
“Legal and Administrative Expenses” means the fees and expenses incurred by the HRA
in connection with review and analysis of the development proposed under this Agreement, the
preparation of this Agreement including, but not limited to, attorney and municipal advisor fees
and expenses.
“Loan” means a draw-down loan from the HRA to the Borrower, to be evidenced by the
Note, in the principal amount up to $800,000 but not to exceed the Qualified Costs as defined
herein and shown in Exhibit D hereto.
“MBE” means a minority-owned business enterprise that is based in the State and is at least
fifty-one (51) percent owned by one or more minority persons, and has its management and daily
business operations controlled by one or more minority persons who own it.
“M.S.” means Minnesota Statutes.
“Note” means the Master Note (Edina Innovation Lab Project), evidencing the Loan, to be
executed by the Borrower and delivered to the HRA, the form of which is attached hereto as
Exhibit H.
“Owner” or “Landlord” means CREFIV-CCRP Metro Boulevard Edina, LLC, a Minnesota
limited liability company.
“Owner Contribution” means funds contributed by the Owner toward the construction of
the Project, including a portion of the Qualified Costs and a portion of the Fixtures, Furnishings
and Equipment (FFE) costs as defined in the Lease.
“Project” means the build out and reconstruction of a portion of the unfinished space in
the Building for establishment of a new business accelerator-type program – the Edina Innovation
Lab – in the Building as generally shown in Exhibit C.
“Property” means real property located at 7201 Metro Boulevard, Edina, Minnesota 55439
aka Parcel Identification No. 09-116-21-21-0016 and as legally described in Exhibit A.
3
“Qualified Costs” means costs incurred by Borrower in connection with the Project, which
are shown on Exhibit D to this Agreement. The Owner Contribution shall not be considered a
Qualified Cost.
“Requisition for Funds” means the form attached hereto as Exhibit I to be utilized by the
Borrower in obtaining disbursement of the Loan from the HRA as construction of the Project
progresses.
“Renovation Plans” means the plans, specifications, drawings and related documents for
the renovation work to be performed by the Borrower on the Property.
“Scope of Work” means the description of the work activities, deliverables, and timeline
for the Project as described in Exhibit D hereto.
“Section” means a Section of this Agreement, unless used in reference to M.S.
“Special Programming” shall have the definition provided in Section 5.06(b) of this
Agreement.
“Spending Plan” means the written spending plan for unobligated tax increment monies
for the Southdale 2 TIF District, Pentagon Park TIF District, and 70th and Cahill TIF District
adopted by the HRA on October 28, 2021, and approved by the City on November 16, 2021.
“State” means the State of Minnesota.
“Termination Date” means the earlier of the date (i) the Loan is paid in full, or (ii) the date
this Agreement is terminated or rescinded in accordance with its terms.
“Unavoidable Delay” means a failure or delay in a party’s performance of its obligations
under this Agreement, or during any cure period specified in this Agreement which does not entail
the mere payment of money, not within the party’s reasonable control, including but not limited to
acts of God, governmental agencies, the other party, strikes, labor disputes (except disputes which
could be resolved by using union labor), fire or other casualty, lack of materials, or declarations of
any state, federal or local government, pandemics, epidemics (includin g the COVID-19 virus);
provided that within ten (10) days after a party impaired by the delay has actual (as opposed to
constructive) knowledge of the delay it shall give the other party notice of the delay and the
estimated length of the delay, and shall give the other party notice of the actual length of the delay
within ten (10) days after the cause of the delay has ceased to exist. The parties shall pursue with
reasonable diligence the avoidance and removal of any such delay. Unavoidable Delay shall n ot
extend performance of any obligation unless the notices required in this definition are given as
herein required.
“WBE” means a women-owned business enterprise that is based in the State and is at least
fifty-one (51) percent owned by one or more women, and has its management and daily business
operations controlled by one or more women who own it.
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ARTICLE 2
Representations and Warranties
2.01. HRA Representations.
The HRA makes the following representations to the Borrower:
(a) The HRA has the power under State law to enter into this Agreement and
carry out its obligations hereunder.
(b) Upon request by the Borrower, the HRA will provide Borrower with a
statement showing each payment, the remaining amounts of unpaid interest, if any, and
principal.
2.02. Borrower Representations.
The Borrower represents and warrants that:
(a) Borrower is a nonprofit corporation under the laws of the State of Minnesota
and has power to enter into this Agreement and has duly authorized, by all necessary
corporate action, the execution and delivery of this Agreement.
(b) Borrower will, subject to and as required by Agreement, complete the
Project in accordance with the terms of this Agreement, and all applicable local, state and
federal laws and regulations.
(c) At such time or times as may be required by law, the Borrower will have
complied with all local, state and federal environmental laws and regulations applicable to
the Project, and will have obtained any and all necessary environmental reviews, licenses
and clearances. The Borrower has received no written notice from any local, state or
federal official that the activities of the Borrower or the HRA with respect to the Property
may be or will be in violation of any environmental law or regulation. The Borrower has
no actual knowledge of any facts the existence of which would cause it to be in violation
of any local, state or federal environmental law, regulation or review procedure with
respect to the Property.
(d) Neither the execution or delivery of this Agreement, the consummation of
the transactions contemplated hereby, nor the fulfillment of or compliance with the terms
and conditions of this Agreement is prevented by, limited by, conflicts with, or results in a
breach of, any restriction, agreement or instrument to which the Borrower is now a party
or by which the Borrower is bound.
(e) The Borrower has no actual knowledge that any member of the Board of
the HRA, or any other officer of the HRA or the City has any direct or indirect financial
interest in the Borrower, the Property, or the Project.
(f) The Borrower will use commercially reasonable efforts to obtain, in a
timely manner, all required permits, licenses and approvals, and will meet, in a timely
5
manner, all requirements of all local, state and federal laws and regulations which must be
obtained or met in connection with the Project. Without limitation to the foregoing, the
Borrower will request and seek to obtain from the City all necessary variances, conditional
use permits and zoning changes related to the Project.
(g) The Borrower has been unable to secure construction financing though
traditional banking institutions and would not undertake the Project without the financial
assistance to be provided by the HRA pursuant to this Agreement.
(h) Apart from the assistance to be provided under this Agreement, the
Borrower shall pay all standard charges and fees due with respect to real estate
developments and allocable to the Property under City ordinances and the City code,
including but not limited to special assessments for local improvements, maintenance
district assessments, commercial waste hauling charges, sewer and water use charges,
building permit fees, plat fees, inspection fees, storm water fees and the like charged
against the Property in accordance with the Lease.
2.03. Use of Property. The Borrower’s use of the Property shall be subject to and in
compliance with all of the conditions, covenants, restrictions and limitations imposed by this
Agreement and the Lease, and all applicable laws, ordinances and regulations. The Borrower
hereby represents and warrants that to its knowledge there is no existing event or circumstance
that would hinder the Project as contemplated by this Agreement.
2.04. Damage or Destruction. Upon any damage or destruction of the Facility, or any
portion thereof, by fire or other casualty, during the term of the Lease and before the Termination
Date, should the Owner decide to commence or cause to be commenced the process required to
repair, reconstruct and restore the damaged or destroyed Facility, or portion thereof, the Borrower
shall use commercially reasonable efforts to remain a tenant in the Facility. If, upon such damage
or destruction of the Facility, Borrower decides not to remain a tenant in the Facility, and vacates
the Facility prior to delivery of a Certificate of Completion, the HRA shall not be required to
provide the Loan contemplated herein.
2.05. Submission and Approval of Evidence of Contracts and Lease that are Contingent
on HRA Financing. No later than the issuance of the building permit for the Project, Borrower
shall provide the HRA with the Go-Ahead Letter in substantially the form in Exhibit B hereto.
ARTICLE 3
The Project
3.01. Timing; Scope of Work and Renovation Plans. At the HRA’s request, the Borrower
shall make available to the HRA for review Renovation Plans for the Project.
(a) Time is of the essence for completion of the Project and occupancy of the
Facility. It is anticipated that the Borrower will enter into construction contracts for the
Project by December 31, 2022; substantially complete construction of the project by May
31, 2023; and move in and occupy the Facility by June 30, 2023.
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(b) Subject to Unavoidable Delay, Borrower shall cause the construction to be
initiated by January 2, 2023 and the Project to be completed and the Facility to be occupied
in accordance with the terms of the Scope of Work described in Exhibit D and this
Agreement by June 30, 2023. The executive director of the HRA is hereby authorized to,
in his or her discretion, provide an extension in writing of up to ninety (90) days of the (i)
construction commencement date or the (ii) completion and occupancy date provided in
this paragraph.
(c) All work with respect to the Project shall be in substantial conformity with
the Scope of Work.
(d) The Borrower shall not interfere with, or construct any improvements over,
any public street or utility easement without the prior written approval of the HRA. All
connections to public utility lines and facilities shall be subject to approval of the HRA (in
accordance with City code) and any applicable private utility provider. Except for public
improvements, which are undertaken by the HRA or other governmental body and assessed
against benefited properties, all street and utility installations, relocations, alterations and
restorations shall be at the Borrower’s expense and without expense to the HRA. The
Borrower, at its own expense, shall replace any public facilities or utilities damaged during
the Project by the Borrower or its agents or by others acting on behalf of or under the
direction or control of the Borrower.
3.02. Certificate of Completion.
(a) Upon the Borrower’s request following the HRA’s certification that the
Project has secured its final inspections and is fit for occupancy and the Project is
completed to the reasonable satisfaction of the HRA, the HRA will furnish the Borrower
with a Certificate of Completion for the Project, in substantially the form attached hereto
as Exhibit E, as conclusive evidence of satisfaction and termination of the agreements and
covenants of this Agreement with respect to the obligations of the Borrower to complete
the construction of the Project and to occupy the suite. The furnishing by the HRA of such
Certificate of Completion shall not constitute evidence of compliance with or satisfaction
of any obligation of the Borrower or Owner to any Mortgagee. Such Certificate of
Completion shall not serve as conclusive evidence of satisfaction and termination of the
Loan.
(b) If the HRA shall refuse or fail to provide a Certificate of Completion
following the Borrower’s request, the HRA shall, within ten (10) days after the Borrower’s
request, provide the Borrower with a written statement specifying in what respects the
Borrower has failed to complete the Project in accordance with this Agreement, or is
otherwise in default, and what measures or acts will be necessary, in the reasonable opinion
of the HRA, for the Borrower to obtain the Certificate of Completion.
3.03. Progress Reports. Until the Certificate of Completion is issued for the Project, the
Borrower shall provide to the HRA by the end of each month a written report as to the actual
progress of construction, which report shall, at minimum, (i) summarize the work completed by
7
narrative description; (ii) provide an approximate percentage of the Project completed; and (iii)
identify any challenges jeopardizing occupancy of the Facility by June 30, 2023.
3.04. Access to Property. The Borrower agrees to permit the HRA and any of its officers,
employees or agents access to the Property at all reasonable times for the purpose of inspection of
all work being performed in connection with the Project; provided, however, that the HRA shall
not have an obligation to inspect such work.
ARTICLE 4
Defense of Claims; Insurance
4.01. Defense of Claims.
(a) The Borrower shall indemnify and hold harmless the HRA, its governing
body members, officers, and agents including the independent contractors, consultants, and
legal counsel, servants and employees thereof (hereinafter, for the purposes of this Section,
collectively the “Indemnified Parties”) for any expenses (including reasonable attorneys’
fees), loss (excluding consequential, special or punitive damages excep t to the extent
payable to third parties by any Indemnified Parties), damage to property, or death of any
person occurring at or about, or resulting from any defect in, the Project; provided,
however, the Borrower shall not be required to indemnify any Indemnified Party for any
claims or proceedings arising from any negligent, intentional misconduct, or unlawful acts
or omissions of such Indemnified Party, or from expenses, damages or losses that are
eligible to be reimbursed by insurance. Promptly after receipt by the HRA of notice of the
commencement of any action in respect of which indemnity may be sought against the
Borrower under this Section 4.01, such person will notify the Borrower in writing of the
commencement thereof, and, subject to the provisions hereinafter stated, the Borrower
shall assume the defense of such action (including the employment of counsel, who shall
be counsel reasonably satisfactory to the HRA) and the payment of expenses insofar as
such action shall relate to any alleged liability in respect of which indemnity may be sought
against the Borrower. The Borrower shall provide the HRA evidence of the
commencement of such defense within five (5) business days of the notification to
Borrower described in the previous sentence. The HRA shall have the right to employ
separate counsel in any such action and to participate in the defense thereof, but the fees
and expenses of such counsel shall not be at the expense of the Borrower unless the
employment of such counsel has been specifically authorized by the Borrower.
Notwithstanding the foregoing, if the HRA has been advised by independent counsel that
there may be one or more legal defenses available to it which are different from or in
addition to those available to the Borrower, the Borrower shall not be entitled to assume
the defense of such action on behalf of the HRA, but the Borrower shall be responsible for
the reasonable fees, costs and expenses (including the employment of counsel) of the HRA
in conducting their defense. The Borrower shall not be liable to indemnify any person for
any settlement of any such action effected without the Borrower’s consent. The omission
to notify the Borrower as herein provided will not relieve the Borrower from any liability
which they may have to any Indemnified Party pursuant hereto, otherwise than under this
Section.
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(b) The Borrower agrees to protect and defend the Indemnified Parties, and
further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other
proceeding whatsoever by any person or entity arising or purportedly arising from the
actions or inactions of the Borrower (or other persons acting on its behalf or under its
direction or control) under this Agreement, or the transactions contemplated hereby or the
acquisition, construction, installation, ownership, and operation of the Project; provided
that this indemnification shall not apply to the warranties made or obligations undertaken
by the HRA in this Agreement or to any actions undertaken by the HRA which are n ot
contemplated by this Agreement but shall, in any event, apply to any pecuniary loss
(excluding consequential, special or punitive damages except to the extent payable to third
parties by any of the Indemnified Parties) or penalty (including interest the reon from the
date the loss is incurred or penalty is paid by the HRA at a rate equal to the prime rate) as
a result of the Project, as constructed and operated by the Borrower, or to violate limitations
as to the use of the revenues therefrom as set forth in the Act.
(c) All covenants, stipulations, promises, agreements and obligations of the
HRA contained herein shall be deemed to be the covenants, stipulations, promises,
agreements and obligations of the HRA and not of any governing body member, officer,
agent, servant or employee of the HRA, as the case may be.
4.02. Insurance. The Borrower will, at its expense, carry such type and amount of
insurance concerning the contents of the Facility as is required under the Lease, and the HRA shall
be named as additional insured on the Borrower’s insurance policies. The Borrower is required in
the Go-Ahead Letter to provide certificates of insurance to the HRA certifying the same, and for
the full term of the Lease, the Borrower shall provide annually to the HRA the updated certificates
of insurance reflecting the annual renewals of such insurance.
ARTICLE 5
Draw-Down Loan for Reimbursement of Expenses
5.01. Development Costs. The Borrower has agreed to and shall be responsible to pay
all of its respective costs of the Project, as herein provided. However, the HRA, in order to
encourage the Borrower to proceed with the Project, and to assist the Borrower in paying the costs
thereof, is willing to provide the Loan for reimbursement of Qualified Costs, as permitted by the
Act, that the Borrower has incurred for the Project.
5.02. Terms of the Loan; Loan for Qualified Costs.
The HRA agrees to loan the Borrower unobligated incremental property taxes for the
Borrower to reimburse Qualified Costs the Borrower has incurred for Project. The Loan shall be
evidenced by the execution by the Borrower of the Note and delivery to the HRA. The Loan is
subject to the following terms and conditions.
(a) The total principal amount of the Loan shall not exceed $800,000. The
actual principal amount of the Loan shall be identified in the Master Note shown in Exhibit
H.
9
(b) Repayment of the Loan shall be amortized over the seven (7) year term of
the Lease.
(c) Loan payments shall occur at least twice annually on July 1 and January 2
of each year until the Loan is paid in full.
(d) The Loan is prepayable by the Borrower at any time without penalty.
(e) The Loan shall bear interest at a per annum rate equal to two percent
(2.00%) and shall accrue on the principal amount of the Loan disbursed pursuant to one or
more Notes or Disbursement Notes starting on the date that is the earlier of (i) the date
when the Certificate of Completion is delivered to the Borrower by the HRA ; or (ii) June
30, 2023, and such interest shall be payable on the “Payment Dates” specified in the Note.
(f) Any principal forgiveness pursuant to Sections 5.05 and 5.06 shall only
decrease the outstanding principal amount of the Loan actually disbursed and shall not
forgive any interest incurred on such disbursed amounts.
(g) If a necessary principal and interest payment is not made by the Borrower
to the HRA within fifteen (15) days of a specified Payment Date, a late fee of 5% of the
outstanding balance (but not to exceed the maximum late charge allowed by law) shall be
charged to the Borrower.
(h) Any payments on the Note from Borrower to HRA shall be from sources of
funds of the Borrower other than the loaned unobligated incremental property taxes . The
Note is not secured by a mortgage on the Building or Facility or any other collateral.
(i) The HRA shall make no more than six (6) Disbursements upon the
submission by the Borrower of no more than six (6) Requisition for Funds in substantially
the same form as Exhibit I hereto and a Disbursement Note in substantially the same form
as Appendix A to Exhibit H hereto. The HRA shall have no obligation to issue additional
Notes or provide other funds other than unobligated incremental property taxes in order to
make Disbursements contemplated by this Agreement and the Master Note.
(j) The HRA shall not be obligated to provide the Loan to the Borrower
subsequent to the termination of this Agreement as provided in Section 8.06 hereof.
5.03. Conditions Precedent to Provision of Loan Disbursement.
As described in Section 5.02(g) above, upon payment by the Borrower of Qualified Costs
for the Project, the Borrower will deliver to the HRA a Requisition of Funds and a Disbursement
Note, each executed by the Borrower. Thereafter, after inspection of the Requisition of Funds and
the Disbursement Note, the HRA will provide to the Borrower the requested Disbursement.
5.04. Satisfaction of Conditions Precedent. Notwithstanding anything to the contrary
contained herein, the HRA’s obligation to reimburse the Borrower for Qualified Costs shall be
subject to satisfaction, or waiver in writing by the HRA, of all of the following conditions
precedent:
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(a) the conditions precedent in Section 5.03 hereof have been satisfied; and
(b) the Borrower shall not be in default under the terms of this Agreement
beyond any applicable cure period.
5.05. Forgiveness for Private Fundraising; Requirements; Certificate of Forgiveness.
(a) Up to $150,000 in principal amount of the Disbursements to the Borrower
shall be forgiven by the HRA based upon the success of the private fundraising campaign
for operating and programming costs.
(b) In order to qualify for forgiveness in this Section, at least $200,000 must be
secured in private funds from non-governmental sources.
(c) The amount of principal forgiveness will be one-half (1/2) the amount of
private fundraising the Borrower receives for the Project. For example, if the Borrower
raises $200,000 privately, $100,000 in principal amount will be forgiven by the HRA. If
$300,000 or more is raised privately, a maximum of $150,000 in principal amount will be
forgiven.
(d) The forgiven principal amount of the Disbursements will be measured at a
time requested by the Borrower, which time shall be (i) no earlier than the date the
Borrower has made its final Requisition of Funds; and (ii) no later than the 5-year
anniversary of Certificate of Completion, upon which time a request for principal
forgiveness is forfeited by the Borrower.
(e) Upon request by the Borrower, the HRA shall provide the Borrower a
Certificate of Forgiveness in substantially the form of Exhibit F hereto.
(f) Any Loan amounts paid repaid to the HRA by the Borrower shall be from
sources of funds of the Borrower other than the loaned unobligated incremental property
taxes.
5.06. Forgiveness for Special Programming; Requirements; Certificate of Forgiveness.
(a) Up to $100,000 in principal amount of the Disbursements to the Borrower
(in up to two tranches of $50,000 each for an eligible and successful cohort) may be
forgiven by the HRA based upon the success of implementation of Special Programming
(as described in this Section 5.06) by the Borrower.
(b) The initial program operated by the Borrower from the Edina Innovation
Lab is entitled “Businesses Innovating & Growing” (“B.I.G.”). B.I.G. is int ended to be a
6-month program bringing together a cohort of 8 to 12 business leaders who will participate
in group trainings twice monthly, with a curriculum that includes general business concepts
such as marketing, finance, scaling, and decision -making (the “Special Programming”).
The amount of principal forgiveness will be in the discretion of the executive director of
the HRA and subject to the following criteria:
11
i. The Borrower must notify the HRA in advance they intend to implement
a Special Programming cohort;
ii. The Borrower must identify the outreach efforts that are to be applied
to attract the members of the Special Programming cohort who may not
otherwise be engaged using traditional methods of outreach. If
applicable, the partner organization helping with outreach shall be
identified;
iii. Of the business leaders included in a Special Programming cohort, at
least fifty percent (50%) shall be owners or employees of a MBE or a
WBE.
iv. The curriculum of the Special Programming cohort shall be the same as
other cohorts with the exception that particular content be adapted to
address the unique business conditions and challenges of the cohort.
v. Upon completion of the cohort, the Borrower shall notify the HRA of
the number of cohort members that satisfactorily completed the
program. At least 90% of the original cohort members are required to
complete the program to achieve a tranch of this forgiveness
requirement.
(c) Upon notification of (b)i and ii, the Executive Director of the HRA has 15
business days to confirm that the minimum expectations have been satisfied. If the
Executive Director or designee has not responded within this time period, the cohort shall
be considered eligible for forgiveness.
(d) Upon completion of the approved cohort, the Borrower shall notify the
HRA of the final makeup of the cohort, including the number of owners or employees of a
MBE or WBE, that participated in and completed the curriculum. If at least 90% of the
participants completed the curriculum and if at least 50% of the participants are owners or
employees of MBE or WBE, the requirement for forgiveness shall be satisfied.
(e) The forgiven principal amount of the Disbursements will be measured at a
time requested by the Borrower, which time shall be (i) no earlier than the date the
Borrower has made its final Requisition of Funds; and (ii) no later than the 5 -year
anniversary of Certificate of Completion, upon which time a request for principal
forgiveness is forfeited by the Borrower.
(f) Upon request by the Borrower, the HRA shall provide the Borrower a
Certificate of Forgiveness in substantially the form of Exhibit G hereto.
(g) Any Loan amounts repaid to the HRA by the Borrower shall be from
sources of funds of the Borrower other than the loaned unobligated incremental property
taxes.
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5.07. Loan Satisfaction. Upon repayment by the Borrower to the HRA of the full
principal amount of the Loan disbursed (and not forgiven) and all interest accrued thereon, the
HRA shall deliver to the Borrower a Certificate of Satisfaction of the Loan in substantially the
form included herein as Exhibit J. Such Certificate of Satisfaction shall indicate that that all
requirements of the Borrower under this Agreement with respect to the Loan have been completed
and duly and fully performed, and such Certificate of Satisfaction is to be conclusive evidence of
the satisfactory termination of the covenants and conditions of this Agreement as they relate to the
Loan. Such Satisfaction is required to be delivered no later than November 17, 2022, which is a
the date seven (7) years after issuance of the Loan .
5.08. Additional Conditions. The following are additional conditions the Borrower must
abide by for the term of this Agreement. Failure to abide by these conditions, without a written
consent or waiver from the HRA, shall constitute an Event of Default under Section 7.01:
(a) The Borrower shall maintain the programming of the Edina Innovation Lab
for the full term of the Lease;
(b) All Facility appliances should be Energy Star rated or equivalent to reduce
energy consumption;
(c) Other agencies providing economic development services to City of Edina
businesses (such as SBA and Open to Business) shall be allowed to conduct meetings in
the shared areas of the tenant space during normal business hours at no charge when space
is available and not otherwise programmed;
(d) The City and the HRA must be identified as the ‘founding sponsors’ or
equivalent with recognition in print, on the website and in prominent signage located in the
entrance or common area of Facility.
(e) In addition to the City’s representative on the Borrower’s Board of
Directors, the executive director of the HRA shall be permitted to appoint at least one
member of the advisory team of the Innovation Lab to guide programming and outreach
that is relevant to the City’s business community. Such appointment shall occur within
thirty (30) days of nomination by the executive director of the HRA.
(f) Upon the completion of each calendar year (but no later than March 1st), the
Borrower shall submit a summary report of the previous year’s operations to the HRA.
This report shall include the number of participants, including details such as: type of
business, city where business is located, and gender and race of participants. The report
shall also identify other programs conducted as part of the Edina Innovation Lab intended
to support the local business community. The report shall also summarize the annual
revenue and expenses of the Edina Innovation Lab.
(g) Upon an Event of Default herein that remains uncured or , the HRA shall
have the first right to sublease all or a portion of the Facility. The Borrower shall ensure
that the Lease includes a provision permitting the HRA to sublease the Facility in such an
instance.
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5.09. Notice of Default. Whenever the HRA shall deliver any notice or demand to the
Borrower with respect to any breach or default by the Borrower in its obligations or covenants
under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to
each investor, lender, or holder of any permitted mortgage, lien or other similar encumbrance at
the last address of such holder shown in the records of the HRA. Each such investor, lender, or
holder shall have the right, at its option, to cure or remedy such breach or default and to add the
cost thereof to the mortgage debt and the lien of its mortgage; provided that if the breach or default
is with respect to construction of the Project, nothing contained in this Agreement shall be deemed
to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to
undertake or continue the construction or completion of the Project without first having expressly
assumed the obligation to the HRA, by written agreement satisfactory to the HRA, to complete the
construction the Project in accordance with the plans and specifications therefor and this
Agreement. Any such holder who shall properly complete the construction of the Project shall be
entitled, upon written request made to the HRA, to a certification by the HRA to such effect in the
manner provided in Section 3.03.
5.10 Legal and Administrative Expenses. The HRA agrees to pay all Legal and
Administrative Expenses that are incurred in connection with the negotiating, approval and
documentation of this Agreement.
ARTICLE 6
Prohibitions Against Assignment and Transfer
6.01. Transfer of Property and Assignment. Borrower will not assign its interest in the
Lease to any third party without the prior consent of the HRA. Provided that no Event of Default
exists hereunder, any such approved assignment shall release the Borrower from its obligations
hereunder upon execution and delivery to the HRA by the transferee or assignee of an instrument
in form and substance satisfactory to the HRA by which the assignee assumes the obligations of
the Borrower hereunder.
Except as set forth in the immediately preceding paragraph, in the absence of specific
written agreement by the HRA to the contrary, no approval of any assignment by the HRA thereof
with respect to any assignment shall be deemed to relieve the Borrower, or any other party bound
in any way by this Agreement or otherwise with respect to the completion of the Project, from any
of their obligations with respect thereto.
6.02. Termination of Limitations on Transfer. The provisions of Section 6.01 shall
terminate at such time as the Certificate of Forgiveness has been issued by the HRA under
Section 3.03 of this Agreement with respect to the Project; provided, however, that any assignment
of the payments to be made to the Borrower under Section 5.02 may only be assigned as permitted
under Section 5.02 hereof.
ARTICLE 7
Event of Default; Fees
7.01. Events of Default. Subject to Unavoidable Delay, the following shall be “Events
of Default” under this Agreement and the term “Event of Default” shall mean, whenever it is used
14
in this Agreement (unless the context otherwise provides), any one or more of the following events
which occurs and continues for more than thirty (30) days after written notice by the defaulting
party of such default (and the term “default” shall mean any event which would with the passage
of time or giving of notice, or both, be an “Event of Default” hereunder):
(a) Failure of the Borrower to complete the Project as required hereunder.
(b) Failure of the Borrower to pay to the HRA any amounts required to be paid
by the Borrower hereunder.
(c) Failure of the Borrower or the HRA to observe and perform any other
material covenant, condition, obligation or agreement on its part to be observed or
performed hereunder.
(d) Filing of any voluntary petition in bankruptcy or similar proceedings by the
Borrower; general assignment for the benefit of creditors made by the Borrower or
admission in writing by the Borrower of inability to pay its debts generally as they become
due; or filing of any involuntary petition in bankruptcy or similar proceedings against the
Borrower which are not dismissed or stayed within sixty (60) days.
(e) Failure of the Borrower to abide by the additional conditions set forth in
Section 5.06.
7.02. Remedies on Default. In the event the HRA desires to exercise any of its rights or
remedies as provided herein or otherwise available to the HRA at law or in equity, the HRA shall
first provide written notice to Borrower setting forth with specific particularity the Event of Default
and the action required to cure or remedy the same (the “Default Notice”). Borrower or any
transferee or assignee under Section 6.01 hereof, shall have thirty (30) days from receipt of a
Default Notice to cure or remedy the Event of Default specified in the Default Notice, or such
longer period as may be reasonably required to complete the cure as soon as reasonably possible
under the circumstances. If, following Borrower’s receipt of a Default Notice, Borrower does not
cure or remedy the Event of Default therein specified within the time provided above, the HRA
may take any one or more of the following actions at any time prior to Borrower’s curing or
remedying the Event of Default:
(a) Suspend its performance under this Agreement until it receives assurances
from Borrower, deemed reasonably adequate b y the HRA, that Borrower will cure its
default and continue its performance under this Agreement.
(b) In the case of a material default that is not cured within a reasonable period
of time, terminate all rights of Borrower under this Agreement.
(c) Withhold the Certificate of Completion.
(d) Withhold the Certificate of Forgiveness.
(e) Sublease the Facility.
15
(f) Demand an accelerated or modified repayment term.
(g) Take ownership of equipment, furnishings and other items not part of the
leasehold improvements required to remain at the property.
(h) Take a controlling interest in the Edina Innovation Lab, including rights to
the name, logo, data, archives, etc.
(i) Take whatever action at law or in equity may appear necessary or desirable
to the HRA to enforce performance and observance of any obligation, agreement, or
covenant of Borrower under this Agreement.
In the event the HRA should fail to observe or perform any covenant, agreement or
obligation of the HRA on their part to be observed and performed under this Agreement, Borrower
may take any one or more of the following actions:
(a) Suspend its performance under this Agreement until it receives assurances from the
HRA deemed adequate by Borrower, that the HRA will cure its default and
continue its performance under this Agreement.
(b) In the case of a material default that is not cured within a reasonable period
of time, terminate all rights of the HRA under this Agreement.
(c) Take whatever action at law or in equity may appear necessary or desirable
to Borrower to enforce performance and observance of any obligation, agreement, or
covenant of the HRA under this Agreement.
7.03. No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA,
or to the Borrower is intended to be exclusive of any other available remedy or remedies, but each
and every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient. In order to entitle the HRA, or
Borrower to exercise any remedy reserved to them, it shall not be necessary to give notice, other
than such notice as may be required under this Agreement.
7.04. Waivers. All waivers by any party to this Agreement shall be in writing. If any
provision of this Agreement is breached by any party and thereafter waived by another party, such
waiver shall be limited to the particular breach so waived and shall not be deemed to waive any
other concurrent, previous or subsequent breach hereunder.
7.05. Agreement to Pay Attorneys’ Fees. Whenever any Event of Default occurs and the
HRA shall employ attorneys or incur other expenses for the collection of payments due or to
become due or for the enforcement or performance or observance of any obligation or agreement
on the part of the Borrower herein contained, the Borrower agrees that it shall, on demand therefor,
pay to the HRA the reasonable fees of such attorneys and such other expenses so incurred by the
HRA.
16
ARTICLE 8
General Provisions
8.01. Conflicts of Interest; HRA Representatives Not Individually Liable. No member,
official, employee, or consultant or employee of a consultant of the HRA shall have any personal
interest, direct or indirect, in this Agreement, nor shall any such member, official, consultant or
the consultant’s employees or employee participate in any decision relating to this Agreement
which affects his or her personal interests or the interests of any corporation, partnership, or
association in which he or she is directly or indirectly interested. No member, official, consultant
or consultant’s employee, or employee of the HRA shall be personally liable to Borrower, or any
successor in interest, in the event of any default or breach by the HRA or for any amount which
may become due to Borrower or successors or on any obligations under the terms of this
Agreement. No member, official, consultant or consultant’s employee, or employee of the
Borrower shall be personally liable to the HRA, or any successor in interest, in the event of any
default or breach by the Borrower or for any amount which may become due to the HRA on any
obligations under the terms of this Agreement.
8.02. Equal Employment Opportunity. Borrower, for itself and its successors and
assigns, agrees that during the construction of the Project it will comply with any applicable
affirmative action and nondiscrimination laws or regulations.
8.03. Restrictions on Use. Borrower agrees for itself, and its successors and assigns, and
every successor in interest to the Property, or any part thereof, that Borrower, and such successors
and assigns, shall devote the Property to, and only to and in accordance with, the uses specified in
this Agreement and other agreements entered into between the Borrower and the HRA, and shall
not discriminate upon the basis of race, color, creed, religion, national origin, sex, marital status,
disability, status with regard to public assistance, sexual orientation, and familial status in the sale,
lease, or rental or in the use or occupancy of the Property or any improvements erected or to be
erected thereon, or any part thereof.
8.04. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections
of this Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any of its provisions.
8.05. Business Subsidies Act. Since the Borrower is a non-profit with fewer than 100
full-time equivalent positions, this transaction is exempt from business subsidy reporting under
the Business Subsidies Act. Therefore, the Loan is not a business subsidy, and the parties will not
enter into a business subsidy agreement pursuant to the Business Subsidies Act.
8.06. Term of Agreement. This Agreement shall terminate on the Termination Date; it
being expressly agreed and understood that the provisions of this Agreement are intended to
survive the expiration and satisfaction of any security instruments placed of record
contemporaneously with this Agreement, if such expiration and satisfaction occurs prior to
Termination Date, as stated in this Section 8.06.
17
8.07. Provisions Surviving Termination. Sections 4.01 and 7.05 hereof shall survive any
termination, rescission, or expiration of this Agreement with respect to or arising out of any event,
occurrence, or circumstance existing prior to the date thereof.
ARTICLE 9
Administrative Provisions
9.01. Notices and Demands. Except as otherwise expressly provided in this Agreement,
a notice, demand, or other communication under this Agreement by any party to another party
shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage
prepaid, return receipt requested, or delivered personally as follows:
(a) in the case of Borrower, addressed to or delivered personally to:
Edina Chamber of Commerce
3300 Edinborough Way
Suite 650
Edina, MN 55435
Attn: Executive Director
AFTER JUNE 30, 2023:
Edina Chamber of Commerce
7201 Metro Boulevard
Suite 520
Edina, MN 55439
Attn: Executive Director
(b) in the case of the HRA, addressed or delivered personally to:
Edina Housing and Redevelopment Authority
4801 W 50th Street
Edina, MN 55424
Attention: Scott Neal, Executive Director
The HRA and the Borrower, by notice given hereunder, may designate different addresses
to which subsequent notices, certificates or other communications should be sent.
9.02. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
9.03. Binding Effect. This Agreement shall inure to the benefit of and shall be binding
upon the HRA and the Borrower and their respective successors and assigns.
9.04. Severability. In the event any provision of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
18
9.05. Amendments, Changes and Modifications. This Agreement may be amended or
any of its terms modified only by written amendment authorized and executed by the HRA and
the Borrower. The Chair and HRA Secretary are authorized to execute and deliver amendments
and any documents related to this Agreement on behalf of the HRA.
9.06. Further Assurances and Corrective Instruments. The HRA and the Borrower agree
that they will, from time to time, execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such supplements hereto and such further instruments as may
reasonably be required for correcting any inadequate or incorrect description of the Property or the
Project or for carrying out the expressed intention of this Agreement.
9.07. Captions. The captions or headings in this Agreement are for convenience only
and in no way define, limit or describe the scope of intent of any provisions or Sections of this
Agreement.
9.08. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota without giving effect to the conflicts-of-laws
principles thereof.
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first above written.
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By
Chair
And
Secretary
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me on this ____ day of
______________, 2022, by _________________, the Chair, and _________________, the
Secretary, of the Edina Housing and Redevelopment Authority, a Minnesota municipal
corporation, on behalf of the corporation.
IN WITNESS WHEREOF, I have set my hand and my official seal this ____ day of
_____________, 2022.
Notary Public
S-2
EDINA CHAMBER OF COMMERCE
ASSOCIATION, INC., A MINNESOTA NON-
PROFIT CORPORATION, D/B/A EDINA
INNOVATION LAB
By:
Signature
Its:
Title
STATE OF __________ )
) ss.
COUNTY OF __________ )
The foregoing instrument was acknowledged before me on this ___ day of ___________,
2022, by __________________, the ____________________ of Edina Chamber of Commerce
Association, Inc., a Minnesota Non-profit corporation, d/b/a Edina Innovation Lab.
IN WITNESS WHEREOF, I have set my hand and my official seal this ___ day of
__________, 2022.
Notary Public
A-1
EXHIBIT A
PROPERTY
The real property and interests in such property located in the County of Hennepin, State
of Minnesota and described as follows:
Common Address: 7201 Metro Boulevard, Suite #520, Edina, Minnesota, 55439
Legal Description
Parcel 1:
Lot 1, Block 1, Martens 1st Addition, according to the recorded plat thereof, and situate in
Hennepin County, Minnesota.
Abstract and Torrens property
Note: The Torrens portion being more particularly described as follows:
Par 1: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Outlot A, Metro Place.
Par 2: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Government Lot 1,
Section 9, Township 116, Range 21, except that part thereof embraced within Outlot A, Metro
Place.
The registered portion of the property is evidenced by Certificate of Title No. 1496208.
Parcel ID Number
09-116-21-21-0016
B-1
EXHIBIT B
GO-AHEAD LETTER
[Date]
Executive Director/ Housing and Redevelopment Authority of Edina, MN
4801 West 50th Street
Edina, Minnesota 55424
Dear [______]:
This letter is submitted pursuant to Section 2.05 of that certain Draw-Down Loan Agreement by and
between the HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA, a public
body corporate and politic organized and existing under the laws of the State of Minnesota (the
“Authority”); and the EDINA CHAMBER OF COMMERCE ASSOCIATION, INC., a Minnesota
nonprofit corporation, d/b/a Edina Innovation Lab (the “Borrower”), dated as of November 17, 2022 (the
“Agreement”), and is provided as the “Go-Ahead Letter” thereunder. Capitalized terms used in this letter
and not defined herein have the meaning given to them in the Agreement.
In accordance with Section 2.05 of the Agreement, Borrower hereby represents, warrants, and certifies to
the Authority that:
(i) The Borrower’s Board of Directors has authorized execution of the Lease, contracts and Loan
Agreement;
(ii) the Lease has been entered into between the Owner and the Borrower and is effective and
enforceable according to its terms;
(iii) the Construction Contract has been entered into between the Owner and the Contractor and is
effective and enforceable according to its terms and
(iv) the Authority has been named as an additional insured on the Borrower’s insurance policies in
accordance with the Agreement and corresponding certificates of insurance have been provided to
the Authority certifying the same.
Sincerely,
______________________________
By: _________________________________________
Print Name
Its: __________________________________________
Title
C-1
EXHIBIT C
TENANT IMPROVEMENTS FOR THE PROJECT
D-1
EXHIBIT D
SCOPE OF WORK; QUALIFIED COSTS
SCOPE OF WORK:
Description: The build out and reconstruction of a portion of the unfinished space in the Building
(Suite #520) for establishment of a new business accelerator-type program – the Edina
Innovation Lab – in the Building. Improvements to be made include those documented in
Exhibit C (Tenant Improvements for the Project) and as further detailed in the various
construction documents and Construction Contract.
Timing:
Construction commencement by December 2022
Substantial project completion by May 2023
Facility Occupancy by June 2023
QUALIFIED COSTS: All construction required to deliver the tenant space as shown in Exhibit
C (Tenant Improvements for the Project), including walls, ceilings, floor finishes, plumbing,
electrical, ventilation; permanent built-in equipment, cabinets and furnishings. The design costs,
permits and construction management expenses shall also be Qualified Costs.
Ineligible Expenses: furnishings (such as loose tables and chairs), equipment (such as
coffee machines), supplies, decorations, computers, monitors and related office materials.
The Owner Contribution shall not be a Qualified Cost.
Note: The total principal amount of the Loan to reimburse the Borrower for Qualified Costs
of the Project will be in an amount up to $712,000.00, but shall not exceed the Qualified
Costs.
Construction Expenses Eligible for HRA Loan Cost Estimate
Construction costs to rebuild tenant space $579,000
construction project management $29,000
design documents $40,000
contingency $95,000
construction cost escalation $57,000
Total = $800,000
E-1
EXHIBIT E
CERTIFICATE OF CONSTRUCTION COMPLETION
WHEREAS, Edina Chamber of Commerce Association, Inc., a Minnesota non-profit
corporation, d/b/a Edina Innovation Lab (“the Borrower”), is the tenant of the facility on the
property in the County of Hennepin and State of Minnesota described on Exhibit A hereto and
made a part hereof (the “Property”); and
WHEREAS, the Property (shown in Exhibit A) is subject to the provisions of a certain
Draw-Down Loan Agreement (the “Agreement”), dated as of November 17, 2022, between the
Borrower and the Edina Housing and Redevelopment Authority; and
WHEREAS, the Borrower has obtained lien waivers or similar evidence that the qualified
costs have been paid in full; and
WHEREAS, the Borrower has fully and duly performed all of the covenants and conditions
of Borrower under the Agreement with respect to the completion of the Project (as defined in the
Agreement);
NOW, THEREFORE, it is hereby certified that all requirements of the Borrower under the
Agreement with respect to the completion of the Project have been completed and duly and ful ly
performed, and this instrument is to be conclusive evidence of the satisfactory termination of the
covenants and conditions of the Agreement as they relate to the completion of the Project. All
other covenants and conditions of the Agreement, including the covenants and conditions related
to the Loan, shall remain in effect and are not terminated hereby.
Dated this ____ day of ____________, 2022.
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By
Executive Director
E-2
Exhibit A to Certificate of Construction Completion
Property
The real property and interests in such property located in the County of Hennepin, State
of Minnesota and described as follows:
Common Address: 7201 Metro Boulevard, Suite #520, Edina, Minnesota, 55439
Legal Description
Parcel 1:
Lot 1, Block 1, Martens 1st Addition, according to the recorded plat thereof, and situate in
Hennepin County, Minnesota.
Abstract and Torrens property
Note: The Torrens portion being more particularly described as follows:
Par 1: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Outlot A, Metro Place.
Par 2: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Government Lot 1,
Section 9, Township 116, Range 21, except that part thereof embraced within Outlot A, Metro
Place.
The registered portion of the property is evidenced by Certificate of Title No. 1496208.
Parcel ID Number
09-116-21-21-0016
F-1
EXHIBIT F
CERTIFICATE OF FORGIVENESS
PRIVATE FUNDRAISING FOR ONGOING OPERATIONS
WHEREAS, Edina Chamber of Commerce Association, Inc., a Minnesota non-profit
corporation, d/b/a Edina Innovation Lab (“the Borrower”), is the tenant of the facility on the
property in the County of Hennepin and State of Minnesota described on Exhibit A hereto and
made a part hereof (the “Property”); and
WHEREAS, the Property (shown in Exhibit A) is subject to the provisions of a certain
Draw-Down Loan Agreement (the “Agreement”), dated as of November 17, 2022, between the
Borrower and the Edina Housing and Redevelopment Authority (the “HRA”); and
WHEREAS, pursuant to the Agreement, the HRA provided a Loan to the Borrower
evidenced by a certain Note and Disbursement Notes (as such terms are defined in the Agreement);
and
WHEREAS, the Borrower has fully and duly performed all of the covenants and conditions
of Borrower under the Agreement with respect to the Project and the Loan; and
WHEREAS, pursuant the Agreement, the principal amount of the Loan disbursed is subject
to forgiveness by the HRA (i) up to $150,000 for certain private fundraising by the Borrower
(“Private Fundraising”); and (ii) up to $100,000 for certain special programming by the Borrower
(“Special Programming”), as described in the Agreement; and
WHEREAS, the City has received evidence from the Borrower of Private Fundraising in
the amount of $______________ (the “Private Fundraising Amount); and
WHEREAS, the principal forgiveness shall be $_________, which amount is equal to or
less than $150,000 and is half of the Private Fundraising Amount; and
WHEREAS, the Developer has delivered to the City its final Requisition of Funds, and
$____________ in total principal amount of the Loan has been Disbursed to Borrower (the
“Disbursed Amount”);
WHEREAS, to date, $____________ of the Disbursed Amount has been forgiven for
Private Fundraising, which amount is no greater than $150,000, and
WHEREAS, to date, $______________ of the Disbursed Amount has been forgiven for
Special Programming, which amount is no greater than $100,000; and
WHEREAS, $_____________ of the Disbursed Amount remains unforgiven (the
“Unforgiven Disbursed Principal Amount).
NOW, THEREFORE, it is hereby certified that:
F-2
1. $______________ of the Unforgiven Disbursed Principal Amount is being forgiven by
the HRA (the “Forgiven Amount”).
2. All requirements of the Borrower under the Agreement with respect to the Project and
Loan have been completed and duly and fully performed, and this instrument is to be
conclusive evidence of the satisfactory termination of the covenants and conditions of
the Agreement as they relate to the Forgiven Amount of the Note, and the Forgiven
Amount of the Note is hereby fully forgiven and satisfied.
3. $______________ of the Unforgiven Disbursed Principal Amount remains outstanding
and remains the obligation of the Borrower to repay.
Dated this ____ day of ____________, 20__.
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By
Executive Director
F-3
Exhibit A to Certificate of Forgiveness (Private Fundraising)
The real property and interests in such property located in the County of Hennepin, State
of Minnesota and described as follows:
Common Address: 7201 Metro Boulevard, Suite #520, Edina, Minnesota, 55439
Legal Description
Parcel 1:
Lot 1, Block 1, Martens 1st Addition, according to the recorded plat thereof, and situate in
Hennepin County, Minnesota.
Abstract and Torrens property
Note: The Torrens portion being more particularly described as follows:
Par 1: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Outlot A, Metro Place.
Par 2: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Government Lot 1,
Section 9, Township 116, Range 21, except that part thereof embraced within Outlot A, Metro
Place.
The registered portion of the property is evidenced by Certificate of Title No. 1496208.
Parcel ID Number
09-116-21-21-0016
G-1
EXHIBIT G
CERTIFICATE OF FORGIVENESS
SPECIAL PROGRAMMING
WHEREAS, Edina Chamber of Commerce Association, Inc., a Minnesota non-profit
corporation, d/b/a Edina Innovation Lab (“the Borrower”), is the tenant of the facility on the
property in the County of Hennepin and State of Minnesota described on Exhibit A hereto and
made a part hereof (the “Property”); and
WHEREAS, the Property (shown in Exhibit A) is subject to the provisions of a certain
Draw-Down Loan Agreement (the “Agreement”), dated as of November 17, 2022, between the
Borrower and the Edina Housing and Redevelopment Authority (the “HRA”); and
WHEREAS, pursuant to the Agreement, the HRA provided a Loan to the Borrower
evidenced by a certain Note and Disbursement Notes (as such terms are defined in the Agreement);
and
WHEREAS, the Borrower has fully and duly performed all of the covenants and conditions
of Borrower under the Agreement with respect to the Project and the Loan; and
WHEREAS, pursuant the Agreement, the principal amount of the Loan disbursed is subject
to forgiveness by the HRA (i) up to $150,000 for certain private fundraising by the Borrower
(“Private Fundraising”); and (ii) up to $100,000 for certain special programming by the Borrower
(“Special Programming”), as described in the Agreement; and
WHEREAS, the City has received evidence from the Borrower of special programming;
and
WHEREAS, the principal forgiveness shall be $_________; and
WHEREAS, the Developer has delivered to the City its final Requisition of Funds, and
$____________ in total principal amount of the Loan has been Disbursed to Borrower (the
“Disbursed Amount”);
WHEREAS, to date, $____________ of the Disbursed Amount has been forgiven for
Private Fundraising, which amount is no greater than $150,000, and
WHEREAS, to date, $______________ of the Disbursed Amount has been forgiven for
Special Programming, which amount is no greater than $100,000; and
WHEREAS, $_____________ of the Disbursed Amount remains unforgiven (the
“Unforgiven Disbursed Principal Amount).
NOW, THEREFORE, it is hereby certified that:
G-2
1. $______________ of the Unforgiven Disbursed Principal Amount is being forgiven by
the HRA (the “Forgiven Amount”).
2. All requirements of the Borrower under the Agreement with respect to the Project and
Loan have been completed and duly and fully performed, and this instrument is to be
conclusive evidence of the satisfactory termination of the covenants and conditions of
the Agreement as they relate to the Forgiven Amount of the Note, and the Forgiven
Amount of the Note is hereby fully forgiven and satisfied.
3. $______________ of the Unforgiven Disbursed Principal Amount remains outstanding
and remains the obligation of the Borrower to repay.
Dated this ____ day of ____________, 20__.
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By
Executive Director
G-3
Exhibit A to Certificate of Forgiveness (Private Fundraising)
The real property and interests in such property located in the County of Hennepin, State
of Minnesota and described as follows:
Common Address: 7201 Metro Boulevard, Suite #520, Edina, Minnesota, 55439
Legal Description
Parcel 1:
Lot 1, Block 1, Martens 1st Addition, according to the recorded plat thereof, and situate in
Hennepin County, Minnesota.
Abstract and Torrens property
Note: The Torrens portion being more particularly described as follows:
Par 1: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Outlot A, Metro Place.
Par 2: That part of Lot 1, Block 1, Martens 1st Addition, embraced within Government Lot 1,
Section 9, Township 116, Range 21, except that part thereof embraced within Outlot A, Metro
Place.
The registered portion of the property is evidenced by Certificate of Title No. 1496208.
Parcel ID Number
09-116-21-21-0016
H-1
EXHIBIT H
FORM OF MASTER NOTE
No. R-1 $800,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
(EDINA INNOVATION LAB PROJECT)
PRINCIPAL AMOUNT: EIGHT HUNDRED THOUSAND DOLLARS
This Note is issued pursuant to the provisions of that certain Draw-Down Loan Agreement,
dated as of November 17, 2022, as the same may be amended from time to time (the “Loan
Agreement”), between the Edina Housing and Development Authority (the “Owner”) and Edina
Chamber of Commerce Association, Inc., a Minnesota non-profit corporation, d/b/a Edina
Innovation Lab (the “Borrower”). Terms used herein but not otherwise defined, shall have the
meaning attributed to them in the Loan Agreement.
The Borrower for value received, promises to pay, to the extent and in the manner
hereinafter provided, to the Owner, the principal sum of eight hundred thousand dollars
($800,000), or so much thereof as may have been disbursed less the principal portion of the Loan
that has been forgiven (if any), in semi-annual installments payable on each July 1st and January
2nd (each being a “Scheduled Payment Date”), commencing the July 1st, 2023, and to pay interest
on each Scheduled Payment Date on so much of the principal amount of the debt as (i) may be
disbursed from time to time as provided in the Loan Agreement and (ii) remains unpaid, until the
principal amount hereof is paid or has been provided for. Interest shall accrue at the rate of two
percent (2.0%) per annum (calculated on the basis of a 360-day year of twelve thirty-day months).
The repayment schedule amortizes the principal over the seven year term of the Lease.
Principal and Interest Payments. Interest shall accrue only on the aggregate amount of this
Master Note which has been disbursed under the Loan Agreement and shall begin accruing on the
date that is the earlier of (i) the date when the Certificate of Completion is delivered to the
Borrower by the Owner; or (ii) June 30, 2023. Disbursements of the proceeds of this Master Note
shall be made in accordance with the Loan Agreement by the execution by the Borrower of one or
more Disbursement Notes in the form attached hereto as Appendix A. Principal, interest and any
premium due under this Master Note will be paid on a Scheduled Payment Date by wire payment,
or by check or draft mailed the last business day prior to the payment date to the person in whose
name this Master Note is registered, in any coin or currency of the United States of America which
at the time of payment is legal tender for public and private debts. Installment payments shall be
applied first to interest and then to a reduction of outstanding principal.
Prepayment. This Master Note is subject to prepayment in whole at any time at the option
of the Borrower without penalty.
H-2
Late Fees. The Borrower shall pay to the Owner on each Scheduled Payment Date all
amounts necessary to pay principal and interest then due and any past due installment. If a
necessary principal and interest payment is not made by the Borrower to the Owner within fifteen
(15) calendar days of a specified Scheduled Payment Date, a late fee of 5% of the outstanding
balance (but not to exceed the maximum late charge allowed by law) shall be charged to the
Borrower.
Forgiveness. This Note is subject to partial principal forgiveness by the Edina Housing
and Development Authority (the “Owner”) pursuant to the terms of the Loan Agreement.
IN WITNESS WHEREOF, the Borrower has caused this Note to be executed by the
manual signatures of the ________________ of the Borrower and has caused this Note to be dated
as of _________________, 2022.
EDINA CHAMBER OF COMMERCE
ASSOCIATION, INC., A MINNESOTA
NONPROFIT CORPORATION, D/B/A EDINA
INNOVATION LAB
By:
Signature
Its: _
Title
H-3
Appendix A to Exhibit H (MASTER NOTE)
DISBURSEMENT NOTE
(EDINA INNOVATION LAB PROJECT)
No. ______________ $____________
For value received, Edina Chamber of Commerce Association, Inc, a Minnesota nonprofit
corporation, d/b/a Edina Innovation Lab (the “Borrower”), and pursuant to the $800,000 Master
Note (Edina Innovation Lab Project), dated November 17, 2022 (the “Master Note”), requests from
the Edina Housing and Development Authority (the “HRA), the disbursement of
$_________________, which when added to the previous disbursements made pursuant to the
Master Note represents a total disbursement made as of the date of this Disbursement Addendum
to Master Note (the “Disbursement Addendum”) in the sum of $____________________.
The Borrower hereby acknowledges itself indebted to and promises to pay to the order of
the HRA on the amount disbursed hereunder and any other amounts disbursed under the Mast er
Note, on or before the date of maturity of the Master Note, with interest payable on the amount
disbursed hereunder from the date of this Disbursement Note at the rate set forth in the Master
Note.
This Disbursement Note shall be subject to the terms and provisions of the Master Note.
IN WITNESS WHEREOF, the Borrower, has caused this Disbursement Addendum to be
executed by the _________________________ of said Borrower on the date of this Disbursement
Addendum, which is ________________________.
By
Title
I-1
EXHIBIT I
FORM OF REQUISITION CERTIFICATE
TO: Edina Housing and Development Authority (the “HRA”)
FROM: Edina Chamber of Commerce Association, Inc., a Minnesota nonprofit corporation,
d/b/a Edina Innovation Lab (the “Borrower”)
RE: $800,000 Draw-Down Loan
This represents Requisition Certificate No. __ in the total amount of $____________ to
pay those Qualified Costs of the Project detailed in the schedule attached.
The undersigned certifies that:
1. The expenditures for which moneys are requisitioned hereby represent Qualified
Costs that have been paid or are due and not yet included in a previous requisition and have been
properly recorded on the Borrower’s books.
2. The moneys requisitioned hereby are not greater than those necessary to meet
obligations due and payable or to reimburse the Borrower for its funds actually advanced for the
Qualified Costs of the Project.
3. Delivered herewith are copies of invoices or other appropriate documentation
supporting the payments or reimbursements requested.
4. No Default or Event of Default under the Draw-Down Loan Agreement, dated
November 17, 2022 (the “Agreement”), between the HRA, and the Borrower has occurred and
continues.
Capitalized terms used but not defined herein shall have the meanings given in the
Agreement.
I-2
Executed this ____ day of _____________, ________.
Edina Chamber of Commerce Association, Inc.,
a Minnesota nonprofit corporation, d/b/a Edina
Innovation Lab
By:
Signature
Its: ________________________________
Title
Requisition Certificate No. ___
Date:
Amount: $
Cumulative Amount Requested to Date: $ ___________
[Attach Invoices for Qualified Costs]
J-1
EXHIBIT J
CERTIFICATE OF LOAN SATISFACTION
WHEREAS, the Edina Housing and Redevelopment Authority (the “HRA”) and the Edina
Chamber of Commerce Association, Inc., d/b/a Edina Innovation Lab (the “Borrower”), are parties
to that certain Draw-Down Loan Agreement (the “Agreement”), dated as of November 17, 2022,
between the Borrower and the HRA, pursuant to which the HRA provided a loan in the total
principal amount $[_________________] (the “Loan”), as evidenced by a Master Note and certain
Disbursement Notes (as such terms as described in the Agreement); and
WHEREAS, the HRA has forgiven a total amount of $[_______________] as evidenced
by executed Certificate(s) of Forgiveness dated ___________________________________; and
WHEREAS, the Borrower has fully repaid to the HRA the principal amount of the Loan
and the required interest thereon.
NOW, THEREFORE, it is hereby certified that all requirements of the Borrower under the
Agreement with respect to the Loan have been completed and duly and fully performed, and this
instrument is to be conclusive evidence of the satisfactory termination of the covenants and
conditions of the Agreement as they relate to the Loan.
Dated this ____ day of ____________, 20_____.
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By
Executive Director
EDINA INNOVATION LAB – PROGRAM OVERVIEW Page 1
EDINA INNOVATION LAB
PROGRAM OVERVIEW FOR FUNDING CONSIDERATION BY EDINA HRA
The Edina Innovation Lab is an initiative of the Edina Chamber of Commerce. The new program
launched in July 2022 and is designed to help existing businesses grow and innovate and remain
sustainable in the ever-changing business environment.
In the Innovation Lab, we do more than just talk about business theory and case studies. The
Innovation Lab provides an immersive and collaborative environment where business owners
bring a challenge to the Lab with the task of developing a road map to help them move
forward. Ideally, they take the first steps while in the Lab where there is support and guidance.
Participants learn from renowned leaders, ask questions, discover new perspectives, and gain
real world knowledge and insights they can put into practice immediately. This is a place where
learning is hands-on, and participants apply their learnings directly to their unique business to
see immediate results.
The primary program offered through the Innovation Lab is called BIG, Businesses Innovating &
Growing. Participants are sole proprietors and small and medium size businesses ready to take
their business to the next level.
Business owners will complete the six-month experiential program with a foundational
understanding of what it takes to operate a successful and growing business in a fast-paced,
changing environment of the 21st century. Participants will then take the program knowledge
and develop an individualized plan to grow and innovate their business over the next year.
Each cohort meets two-hours, twice a month for six months. With the completed space, we will
be able to run multiple cohorts at one time and begin additional programming that includes
leadership and purpose.
Each BIG cohort has a maximum of ten participant businesses, offering individuals the
opportunity to develop meaningful and trusting relationships. Without a dedicated space we
can run one cohort at a time. Once the new space is completed, we’ll run three cohorts that
first year and increase it to eight cohorts the following year. More space means more cohorts
which means more revenue. Individuals who compete the BIG program have the option of
participating in a monthly “alumni” activity.
EDINA INNOVATION LAB – PROGRAM OVERVIEW Page 2
The curriculum is designed to be flexible, addressing each of the business’s specific needs.
These are group learning activities with a curriculum covering the essential business
fundamentals, along with deeper dives into tools and programs that meet those specific needs.
The fundamentals include the following.
• Finance
• Marketing
• Relationship Management
• Sales
• Human-Centered Design
• Legal
• Accounting
• Purpose
• Leadership
• Media Marketing Strategies
• Employment Recruitment
• Human Resources
Pilot Program launched in July 2022 July, when welcomed the first cohort of nine businesses
and ten individuals into the program. Each business has a different hurdle to clear before they
can grow their business. The goal of the Innovation Lab is to provide clarity and guidance on
how to clear the hurdles and move forward.
Participants are excited with their progress and report the following:
• “The Innovation Lab helped me develop a plan to expand my Edina business nationally. “
• Two participants had a difficult time getting their financials in order. Without financial
organization, they were not able to develop a sustainable plan to move forward. One
completed their financial housecleaning and the other will have the work complete by
the end of 2022. They now have the time and structure to develop a plan to take their
business to the next level.
• “The Innovation Lab helped me see that my purpose in life can be aligned with my
business. Having a successful business is one thing but having a successful business that
brings personal fulfilment is life affirming.”
• “The Innovation Lab confirmed the direction I was going to grow my business but also
helped empower me to hire the right people in the right roles.”
The pilot is undeniably successful but also shows us the importance of expanding our space. In
order to meet our financial targets, we need to add more cohorts to the program and our
current space restrictions do not allow us to expand. With input from city staff, we reviewed
the potential of 11 different sites in Edina. After careful consideration, together we determined
it was more cost-effective to buildout open space rather than retrofitting other space.
Hours of operation
General Lab hours vary according to the events schedule but typically is open 8:30 am to 4:30
pm Monday through Friday or as needed for special events. Each cohort of the BIG programs
run two-hours, twice a month and the time of day varies.
Trade Area
While our area of focus is the City of Edina, any business can participate in the Innovation Lab.
EDINA INNOVATION LAB – PROGRAM OVERVIEW Page 3
Target Customer
The business must have a minimum of three years of successful operation. These are
businesses that have successfully contributed to the economy of our community. The founder
must be committed to putting in the work to move the organization forward. Our program is
based on applying learnings immediately to see the best results.
The Edina Innovation Lab Difference
The Edina Innovation Lab stands out from Minnesota incubators and accelerators in that we
welcome and support established businesses in all industry sectors. We do this while keeping to
the tenants of the city’s Comprehensive Plan and the Edina Chamber’s strategic plan to build
the base of technology and wellbeing businesses in Edina.
Our second cohort of businesses includes two businesses in the health and wellbeing space.
Edina Businesses Post-Covid
For decades, Edina has enjoyed a robust business community, but the pandemic changed that
for many small business owners. Government assistance including the PPP loans gave business
the lifeline they needed to survive. But as we emerged through the other side of Covid,
organizations are not seeing a return to the “normal” of pre-pandemic.
Government funding gave businesses a fish but didn’t teach them how to fish for long term
survival. The Edina Innovation Lab teaches them how to fish and how to pivot and remain
relevant in the new normal. In addition to understanding what they need to do in the short
term to be successful, the tools they learn will teach them how to adapt to future challenges
and opportunities.
Hennepin County has an extensive program to assist small and medium size business owners.
Elevate Business is only open to Hennepin County businesses and provides access to specialized
advisors and support to “tackle a problem.” Topic-driven webinars are also available.
• Business advising up to 25-hours
• Peer-to-peer roundtables- sharing best practices and problem solving
• Topic-driven webinars
SCORE- Watch low or no-cost webinars, attend local workshops or complete online, interactive
courses to gain new business knowledge and skills. In-person classes are limited and may not
address specific business needs. Online sessions are pre-taped and do not provide an
opportunity for interaction.
EDINA INNOVATION LAB – PROGRAM OVERVIEW Page 4
Metropolitan Consortium of Community Developers (MCCD)
Open to Business is another community partner that is welcome to use the Innovation Space to
meet with Edina businesses.
Open to Business provides free, confidential business counseling to current and prospective
entrepreneurs. Our experienced consultants work with small business owners to access the
technical assistance and financing options they need to succeed. Cities and counties including
Edina, pay to participate in this program. Open to Business does not provide the same one-on-
one, customized programming businesses receive in the Innovation Lab.
Staffing
The Innovation Lab employs one full time and one part time staff member. We anticipate hiring
one additional full time individual in year two as the BIG programs expands.
Marketing of the Edina Innovation Lab will begin with a dedicated office space. Marketing focus
in year one will be on the BIG program and will increase as we add leadership and purpose
programming.
Contact Information
Formal name of business
Edina Chamber of Commerce Association
Informal (dba) business name
Edina Innovation Lab
Address of business (in Edina)
Currently: 3300 Edinborough Way, Suite 650, Edina
New location with estimated move-in date of April 1, 2023.
7201 Metro Blvd.
Edina 55439
Business phone number and website
952-806-9060
Edinainnovationlab.com
Name, telephone & email of main contact person
Lori Syverson, president
lori@edina.org
952-806-9063
Prepared November 7, 2022
Construction Expenses
Eligible for HRA Loan Cost Estimate Notes
Construction costs to rebuild
tenant space $579,000 August 23, 2022 contractor proposal
construction project
management $29,000 5% of construction cost
design documents $40,000 HGA Architects - estimated at 7% of constr
costs
contingency $95,000 scope changes and other construction
changes TBD
construction cost escalation $57,000 10% estimated cost increase
Total = $800,000
Funding Source Amount Notes
Tenant Equity $0 In kind contribution in management, oversight
and planning; also in kind investment for pilot
program
Anticipated Landlord
Contribution $145,495 $35 x 4,157 Sq Ft (minimum amount - might be
higher if less is needed for FFE)
Anticipated HRA Loan
Amount $654,505 Not to exceed $800k
Total = $800,000
Other Start Up Expenses - NOT eligible for HRA Loan
FFE, basic $62,355 landlord contribution (up to $15 per Sq Ft
maximum, if needed)
FFE, enhanced $38,645 Edina Chamber and in kind donations from
local furniture sources
Total = $101,000
Updated 11-9-2022
2023 2024 2025 2026 2027 Notes
BIG Program
Fees $180,000 $300,000 $360,000 $480,000 $480,000 Assumes 3 to 8 cohorts of 10 participants annually @
$6,000 each
Special Event
Sponsorship and
Other Program
Fees
$20,000 $20,000 $25,000 $30,000 $35,000
Anticipate 2 or more special events annually in partnership
with area universities and others collaborative partners;
initial topics include: Focus on Purpose and Women
Business owners breaking the glass ceiling; other topics
TBD
General
Program
Partnerships
$299,000 $150,000 $150,000 $150,000 $150,000 Initial multi-year fundraising effort to raise $1.0 million from
local stakeholders and business supporters to establish
endowment and scholarship fund
Individual
Business
Consulting
$0 $10,000 $20,000 $30,000 $50,000 Staff will offer consulting services to individual businesses
to address specific needs that are beyon BIG
Total Revenue $499,000 $480,000 $555,000 $690,000 $715,000
Staff
Compensation $120,000 $185,000 $250,000 $300,000 $350,000
Includes one full-time dedicated staff person plus one part-
time staff person; includes salary and benefits; this may
change overtime depending on programming and
fundraising
Loan Repayment $55,000 $109,000 $109,000 $109,000 $109,000 $9,091/mo based on 712,0000k loan at 2% simple interest -
assumes payments begin July 1st 2023
Rent / CAM $32,000 $63,000 $67,000 $66,000 $70,000
Total monthly rent is $9353 with annual escalation; Lab to
pay about 50% ($5,333) with balance paid by Chamber of
Commerce and Explore Edina; includes typical cleaning 3x
per week
Accounting $12,000 $12,600 $13,230 $14,023 $14,864 Assumption $1,000 per month exclusively for Lab
Legal $6,000 $0 $0 $0 $0 Assumption $500 per month for first year
Marketing/
Advertising $12,000 $12,000 $12,000 $12,000 $12,000 Assumption $1,000 per month; specific marketing effort will
change as needed over time
Utilities $0 $0 $0 $0 $0 included in rent/CAM
Copier $800 $800 $800 $800 $800 Total cost approx $2,400 split by Chamber and Explore;
$67 per month attributed to Lab
Phones $1,800 $1,800 $1,800 $1,800 $1,800 Total cost approx $5,400 split by Chamber and Explore;
$150 per month attributed to Lab
Internet $1,040 $1,040 $1,040 $1,040 $1,040 Total cost approx $3,600 split by Chamber and Explore;
$87 per month attributed to Lab
Insurance $2,000 $2,500 $3,000 $35,000 $4,000 Assumption $167 per month for Lab; additional costs borne
by Chamber and Explore
Subscriptions $1,500 $1,500 $1,500 $1,500 $1,500 Assumptionm $1,500 beginning of the year; industry and
economic reports
Software $1,800 $1,800 $1,800 $1,800 $1,800 Purchase 2 additional licenses for new users
IT $1,524 $1,575 $1,600 $1,625 $1,650 Total cost approx $4,600 split by Chamber and Explore;
$128 per month attributed to Lab
Computers $3,000 $0 $0 $0 $0 Purchase 2 new machines in 2023
Program
Supplies $18,000 $18,000 $18,000 $18,000 $18,000 misc program expenses including: office supplies,
consumable items, food/bev for group meetings; staff
training, etc
Total Expenses $268,464 $410,615 $480,770 $562,588 $586,454 Updated November 9, 2022
Revenue
Expenses
Edina Innovation Lab - 5-year Operating Forecast
A presentation to:City of Edina-HRA Board
11.17.2022 | Edina Innovation Lab .01
A Shared Vision
11.17.2022 | Edina Innovation Lab .01
Edina Businesses Post-Covid
11.17.2022 | Edina Innovation Lab .01
Innovation Lab Supports Small Business
11.17.2022 | Edina Innovation Lab .01
The Future of Edina Business
MINNPOST, July 2022
Addressing Minnesota’s start-up ecosystem
“Yet, it’s not enough to just produce new companies-those
companies must also survive and grow past their critical early years
to contribute to the state’s economy.”
11.17.2022 | Edina Innovation Lab .01
City of Edina Mission and Vision
• Live, Work, Play, & Thrive
IN
• Nodes & Modes Environment
11.17.2022 | Edina Innovation Lab .01
What is the Edina Innovation Lab.
The Edina Innovation Lab is a place-where business owners
create a roadmap to grow and innovate their business,
taking it to the next level.
11.17.2022 | Edina Innovation Lab .01
Governance.
11.17.2022 | Edina Innovation Lab .01
Who Participates?
•Owners & leadership in any business sector
•Focus is Edina businesses and business owners with intent to
support economic vitality in the city
Curriculum.
Experiential based learning customized
to the needs of each cohort. Examples
include finance, marketing, human
resources, strategic thinking and more.
11.17.2022 | Edina Innovation Lab .01
Programs.
Accelerator
Big helps businesses
struggling with growth and
change. We create an
environment that allows
for problem solving
through discovering
untapped resources,
creating sustainable
solutions while engaging
with fellow professionals.
Purpose
We all have a purpose,
here we help you to
discover it. This lab helps
you build a purpose
statement, how to
implement your plan and
ways to engage and inspire
people alongside your
journey.
Connectors
Connections can transform
ideas into businesses.
Igniting relationships by
engaging with fellow
professionals that not only
build businesses but your
community.
Leadership
Cultivating an environment
that brings out the best in
people, the Lab has
curated a leadership
council that believes in
sharing their skills to
better yours and inspiring
the next generation of
leadership
BIG.01
Beth Grant Interiors
Brave Girl International
Buttermilk Basin
Coccinella
Devine Shine
Inherited Stories
LSE Architects
Rachael Michael Stylist
VueFinder Optical
edinainnovationlab.com
11.17.2022 | Edina Innovation Lab .01
How the Innovation Lab Stands Apart.
• Fill a need in Edina and the Twin Cities
•Sustainable
•Ability to pivot
11.17.2022 | Edina Innovation Lab .01
Strategic Partnerships.
• SCORE
• Open to Business
• Hennepin County-Elevate Business & County Commissioner
LaTondresse
• Edina Public Schools
11.17.2022 | Edina Innovation Lab .01
Where Innovation Happens-Space.
• Location
• Economies of scale
• Buildout vs teardown vs as is
11.17.2022 | Edina Innovation Lab .01
Construction Expenses
Eligible for HRA Loan
Cost
Estimate Notes
Construction costs to
rebuild tenant space $579,000 August 23, 2022 contractor proposal
construction project
management $29,000 5% of construction cost
design documents $40,000 HGA Architects - estimated at 7% of constr
costs
contingency $95,000 scope changes and other construction
changes TBD
construction cost
escalation $57,000 10% estimated cost increase
Total = $800,000
Funding Source Amount Notes
Tenant Equity $0
In kind contribution in management,
oversight and planning; also in kind
investment for pilot program
Anticipated Landlord
Contribution $145,495 $35 x 4,157 Sq Ft (minimum amount -
might be higher if less is needed for FFE)
Anticipated HRA Loan
Amount $654,505 Not to exceed $800k
Total = $800,000
Other Start Up Expenses - NOT eligible for HRA Loan
FFE, basic $62,355 landlord contribution (up to $15 per Sq Ft
maximum, if needed)
FFE, enhanced $38,645 Edina Chamber and in kind donations from
local furniture sources
Total = $101,000
Updated 11-9-2022
11.17.2022 | Edina Innovation Lab .01
2023 2024 2025 2026 2027 Notes
BIG Program
Fees $180,000 $300,000 $360,000 $480,000 $480,000 Assumes 3 to 8 cohorts of 10 participants annually
@ $6,000 each
Special Event
Sponsorship
and Other
Program Fees
$20,000 $20,000 $25,000 $30,000 $35,000
Anticipate 2 or more special events annually in
partnership with area universities and others
collaborative partners; initial topics include: Focus
on Purpose and Women Business owners breaking
the glass ceiling; other topics TBD
General
Program
Partnerships
$299,000 $150,000 $150,000 $150,000 $150,000
Initial multi-year fundraising effort to raise $1.0
million from local stakeholders and business
supporters to establish endowment and scholarship
fund
Individual
Business
Consulting
$0 $10,000 $20,000 $30,000 $50,000
Staff will offer consulting services to individual
businesses to address specific needs that are
beyon BIG
Total Revenue $499,000 $480,000 $555,000 $690,000 $715,000
Staff
Compensation $120,000 $185,000 $250,000 $300,000 $350,000
Includes one full-time dedicated staff person plus
one part-time staff person; includes salary and
benefits; this may change overtime depending on
programming and fundraising
Loan
Repayment $55,000 $109,000 $109,000 $109,000 $109,000 $9,091/mo based on 712,0000k loan at 2% simple
interest - assumes payments begin July 1st 2023
Rent / CAM $32,000 $63,000 $67,000 $66,000 $70,000
Total monthly rent is $9353 with annual escalation;
Lab to pay about 50% ($5,333) with balance paid
by Chamber of Commerce and Explore Edina;
includes typical cleaning 3x per week
Accounting $12,000 $12,600 $13,230 $14,023 $14,864 Assumption $1,000 per month exclusively for Lab
Legal $6,000 $0 $0 $0 $0 Assumption $500 per month for first year
Marketing/
Advertising $12,000 $12,000 $12,000 $12,000 $12,000 Assumption $1,000 per month; specific marketing
effort will change as needed over time
Utilities $0 $0 $0 $0 $0 included in rent/CAM
Copier $800 $800 $800 $800 $800 Total cost approx $2,400 split by Chamber and
Explore; $67 per month attributed to Lab
Phones $1,800 $1,800 $1,800 $1,800 $1,800 Total cost approx $5,400 split by Chamber and
Explore; $150 per month attributed to Lab
Internet $1,040 $1,040 $1,040 $1,040 $1,040 Total cost approx $3,600 split by Chamber and
Explore; $87 per month attributed to Lab
Insurance $2,000 $2,500 $3,000 $35,000 $4,000 Assumption $167 per month for Lab; additional costs
borne by Chamber and Explore
Subscriptions $1,500 $1,500 $1,500 $1,500 $1,500 Assumptionm $1,500 beginning of the year; industry
and economic reports
Software $1,800 $1,800 $1,800 $1,800 $1,800 Purchase 2 additional licenses for new users
IT $1,524 $1,575 $1,600 $1,625 $1,650 Total cost approx $4,600 split by Chamber and
Explore; $128 per month attributed to Lab
Computers $3,000 $0 $0 $0 $0 Purchase 2 new machines in 2023
Program
Supplies $18,000 $18,000 $18,000 $18,000 $18,000 misc program expenses including: office supplies,
consumable items, food/bev for group meetings;
staff training, etc
Total Expenses $268,464 $410,615 $480,770 $562,588 $586,454 Updated November 9, 2022
Revenue
Expenses
Edina Innovation Lab - 5-year Operating Forecast
11.17.2022 | Edina Innovation Lab .01
Programming Revenue.
11.17.2022 | Edina Innovation Lab .01
Revenue vs Expenses.
11.17.2022 | Edina Innovation Lab .01
What are other cities doing?
• Bloomington
• Rochester
• Other Minnesota Communities
11.17.2022 | Edina Innovation Lab .01
Economic development isn’t about
handouts. It’s about building for the
future.”
“
Date: November 17, 2022 Agenda Item #: VI I.B.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:Updated Tax Inc rement F inanc ing P olic y Ac tion
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO 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 updated policy to be followed when considering the use of Tax Increment F inancing.
I N TR O D U C TI O N:
T his item pertains to the future use of Tax I ncrement Financing in Edina. T he policy was last updated in 2011.
S taff recommends the policy be updated to reflect current practice of using T I F only when necessary to deliver
public benefits. After approval by the H R A, this item will be forwarded to the C ity C ouncil for formal adoption.
AT TAC HME N T S:
Description
Staff Report - TIF policy
TIF Policy - Update Nov 2022
New Edina TIF Policy - propos ed updates 11-16-2022 redline
New Edina TIF Policy - propos ed updates 11-16-2022 clean
November 17, 2022
Chair and Commissioners of Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Updated Tax Increment Financing Policy
Information / Background:
The use of public financing tools like Tax Increment Financing is governed by Minnesota Statute. The
application of interpretation is governed by local policy. Edina’s TIF Policy was written in 2011.
Staff recommends that the policy be updated to clarify the application of the TIF Statute on redevelopment
projects and affordable housing projects in Edina.
Evaluation:
Staff has evaluated past and current practices in Edina and has also reviewed policy of other jurisdictions.
Based on preliminary input from the Housing and Redevelopment Authority, the updated policy reflects the
intention that most redevelopment projects be privately financed and that TIF only be used in exceptional
cases to achieve public benefits over and above increases in the property tax base.
The City’s guiding documents including Vision Edina, Comprehensive Plan, Small Area Plans, Design
Guidelines, Sustainability policy and Affordable Housing policy were incorporated into the new TIF policy.
The updated policy was reviewed by the HRA’s financial advisor and legal advisor. Input was also solicited
from a variety of staff divisions including: Planning, Housing, Economic Development, Building Construction,
Equity, Community Engagement, Sustainability and Parks/Recreation.
Staff Recommendation:
The proposed policy strengthens the City’s position when TIF is requested and establishes a higher bar
when TIF is used. Staff recommends approval of this updated policy.
Note: after HRA consideration, this policy will also be presented to the City Council for final adoption.
Housing and Redevelopment Authority
Established 1974
☒City Council Approved: 2011
☐City-Wide Revised: Click here to enter a date.
☐Department
City of Edina Policy
Tax Increment Financing Policy
BACKGROUND
The City of Edina has statutory authority to use Tax Increment Financing (TIF) pursuant to Minnesota State
Statutes Section 469.174-469.1799 (the TIF Act). TIF uses the increased property taxes generated by new real
estate development within defined geographic districts to pay for certain costs associated with new development
(including but not limited to affordable housing) as well as related public infrastructure and public realm spaces.
The City’s mission is “…to provide effective and valued public services, maintain a sound public infrastructure,
offer premier public facilities and guide the development and redevelopment of lands, all in a manner that sustains
and improves the health and uncommonly high quality of life enjoyed by our residents and businesses.” (Source:
2015 Vision Edina).
The land within the City boundaries has been substantially built-out for more than a decade and many of the older
properties are in the “redevelopment” phase. In order to construct a new structure, an older structure that is
unsound, outdated, or obsolete must typically be removed.
In most cases, development projects in Edina are privately funded using traditional debt and equity sources. From
time-to-time, however, the City has found it necessary to provide financial support for development projects that
deliver outstanding benefits to the community and that could not be accomplished without public financial
involvement.
As early as the 1980s, the City used TIF to help deliver desired commercial and multifamily development served
by public infrastructure elements including roads, sidewalks, utilities, public parking, and public realm spaces like
parks and plazas. TIF was essential to construct the commercial, residential and public elements at Edinborough
Park and Centennial Lakes Park (including affordable housing). TIF was also essential to fund public parking at 50th
and France and to transform the Grandview District from an industrial area to a mixture of residential,
commercial and civic uses with public parking. Historically, the use of TIF in Edina has not applied the full breadth
of authority allowed by the TIF Act.
City of Edina
Tax Increment Financing Policy
Page 2
PURPOSE OF POLICY
While most redevelopment projects in Edina are privately financed, on certain occasions, the City may
find it necessary to provide financial support in order to overcome unusual hurdles and to achieve
extraordinary benefits to the general public. The purpose of this policy is to:
Limit the use of TIF to only projects that deliver extraordinary permanent benefits to the general public.
Establish criteria and guidelines for where new TIF Districts are established and how incremental taxes are
utilized in Edina.
Ensure that TIF is used in a transparent, consistent and equitable manner to provide value to the community.
Ensure that TIF is used to deliver both short-term and long-term improvements that are a benefit to the
general public in Edina.
This policy provides guidance to developers, property owners, staff, and the community at large regarding Edina’s
use of Tax Increment Financing as a public finance tool to attract and support high quality development that
contributes to a strong property tax base and to the high quality of life in Edina. For the purpose of this policy, the
“City” shall also mean the Edina Housing and Redevelopment Authority (HRA), which assists in a variety of
housing, redevelopment, and economic development activities for the City of Edina.
PUBLIC BENEFITS PURSUED WITH TIF
Edina’s Comprehensive Plan establishes guidance for the anticipated changes in land use and related systems for
the next decade. Most land use changes are anticipated to occur in commercial and industrial areas. Many of the
preferred outcomes identified in the Comprehensive Plan include changes to transform single use sites to mixed
uses that provide a strong tax base, improved connectivity and access for drivers, bicyclists and pedestrians. When
necessary, TIF can be used to achieve many benefits to the community, including:
Transformational change of properties in a manner compatible with Comprehensive Plan, Small Area
Plans, Development Framework, Sustainability Policy, New Multifamily Affordable Housing Policy and
other Guidelines adopted by the City
Improvements to the multi-modal transportation network, including roads and infrastructure for motor
vehicles, pedestrians, bicyclists and transit
Public realm improvements, including green space and placemaking elements including landscaping,
streetscaping and public art
Public parking facilities that provide shared parking resources for more than one property
Improvements to public utility networks; including potable water, fire protection, storm sewer and
City of Edina
Tax Increment Financing Policy
Page 3
sanitary sewer
Stormwater retention and detention systems that benefit more than one property
Removal of substandard buildings that may have a blighting effect on the community
Preservation of buildings that are historically or culturally significant to the community
Remediation of environmental contamination
Creation and retention of long-term affordable housing at a variety of below-market price points
Creation and retention of permanent employment opportunities
PROCEDURAL CONSIDERATION OF TIF
1) Authority rests with City Council. Consideration to establish a new TIF District shall be at the sole
discretion of the City Council. Administration and determine of specific uses of incremental property
taxes generated therein shall be at the discretion of the City Council or HRA. Since each development
project is unique, the use of TIF shall be considered on a case-by-case basis.
2) The Edina Housing and Redevelopment Authority shall provide initial direction regarding the potential use
of TIF, shall review the Term Sheet that identifies the proposed use of TIF on each project and shall
review and approve the contractual documents such as TIF Agreements.
3) Eligible Applicants. Only current property owners or developers that have site control are eligible to apply
for TIF. Evidence of site control shall be provided in the TIF Application.
4) Negotiation of TIF terms. After the TIF Application is submitted, the developer shall negotiate financing
terms only with the City Manager, HRA Executive Director or designee. The prepared terms and
proposed contract shall then be presented to the HRA Board and the City Council as a whole.
5) Application Form. Developers that request TIF shall submit a completed application in a form approved by
the City Manager or HRA Executive Director. The application shall identify the anticipated financing
sources, including equity, type of debt, external grants/contributions, and the amount and type of TIF
support requested to resolve the financing gap. A complete development sources and uses pro forma shall
be submitted, as well as an operating pro forma based on a stabilized project. The application shall include
calculations that identify the financing gap. This information is required to determine the “but for” test
required under the TIF Act. The application shall also identify extra-ordinary costs to develop the project
in Edina and shall also identify the exceptional public benefits that could be delivered if the project is
completed. The Application shall also address other criteria identified in this document.
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6) Application Fee. The application fee shall be $10,000. Fifty percent (50%) of the fee shall accompany the
initial application. The remaining fifty percent (50%) shall be due after the confirmation of a Term Sheet
and prior to the preparation of full contractual documents. Application fees are non-refundable.
7) Use of Third-party Expert Advisors. Expert advisors shall be engaged by the HRA as necessary to ensure
compliance with the TIF Act and to provide expertise to supplement the abilities and capacity of staff.
Typical advisors have expertise in TIF law, public sector development finance, general development
finance, property inspection as it pertains to TIF, and real estate valuation, among other redevelopment
topics. All advisors shall be contracted to the HRA and shall uphold the interests of the HRA and the City
while providing service.
8) Developer Responsible for Fees. The developer shall be solely responsible for the payment of third
expenses pertaining to the developer’s request for TIF support from the time of the request to the
delivery of the Certificate of Completion. Prior to preparation of the Term Sheet, the applicant shall
submit to the City a deposit equal to the total estimated costs for legal and consultant fees. These funds
will be held in a non-interest-bearing escrow and the City will draw upon these funds to pay all related
expenses. Additional funds may be necessary if the scope of the work changes beyond the initial
expectation. Any unused balance shall be returned to the developer upon completion of the process. The
developer shall also be solely responsible for any costs related to requested amendments to the TIF
District or TIF Agreements.
9) Initial Staff Response and Notification of HRA Board. City staff shall review and evaluate the Application
for compliance with the City’s policies. Soon after receipt of a TIF Application, staff should advise the
Edina HRA about the TIF request including the potential public benefits delivered if TIF would be
provided. Staff will then seek approval to engage third party advisors to fully vet the merits of the TIF
request.
10) Preparation of Term Sheet. Staff shall prepare a Term Sheet that summarizes the key terms by which TIF
could be used for the project. The Term Sheet shall be submitted to the Edina HRA for review and
consideration. The Term Sheet should generally be considered after preliminary zoning approval is
obtained. The HRA should provide verbal indication whether they are agreeable to preparation of binding
contracts (commonly known as TIF Agreements) based on the Term Sheet.
11) Creation of TIF District. After consideration of the Term Sheet, staff shall begin the process of establishing
a TIF District to achieve the goals outlined in the Term Sheet.
12) TIF Agreement. Staff shall work with legal and financial advisors to prepare complete and binding legal
agreements based on the Term Sheet. The TIF Agreement should be considered by the HRA Board
and/or the City Council after final zoning approval is obtained.
13) The provision of TIF is contingent upon receiving all other necessary project approvals from the City.
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FINANCIAL REPORTING AND TRANSPARENCY
1) The City shall submit all required reports on the use of Tax Increment Financing to Hennepin County and the
Minnesota Office of the State Auditor using the format provided by those agencies.
2) Year in Review Report. Each year, staff shall publish a report that summarizes the use of TIF written in plain
English style. This report shall include the following information for each active TIF District: start and end
dates, debt and contractual obligations, tax collection status, tax base status, and other pertinent information .
This report shall also quantify outcomes when TIF is used to achieve public benefits. This report should be
delivered to the Edina HRA in January and shall be made available to the applicable School District(s) and to
the general public upon request.
3) The City shall post general information on the use of TIF in Edina on the City website.
ESTABLISHMENT OF TIF DISTRICTS
1) Preparation of TIF Plan. The HRA’s Financial Advisor shall prepare the TIF Plan to satisfy the requirements of
Minnesota TIF Statutes. The TIF Plan should be written in plain English style. The TIF Plan should describe the
intended redevelopment and/or housing outcomes and should identify how the use of TIF will help achieve
community goals as defined in the Comprehensive Plan and related plans.
2) Type of District. The type of District established shall be determined by the City Council in accordance with
the limitations contained in Minnesota Statute.
3) Boundaries and Term. The boundaries of each new district should be as small as necessary to achieve the
development goals of the subject properties and adjacent public areas. When establishing a new TIF District,
the shortest statutory term to achieve the desired outcomes should be considered. A longer term should be
considered when pooling is desired.
4) Impact on Municipal Services. The impact of the proposed project on the City’s delivery of services, capital
expenditures and operating expenditures shall be taken into consideration prior to the adoption of a TIF Plan.
5) Fiscal Disparities. Projects utilizing TIF are responsible for paying their share of the Fiscal Disparities
contribution from the property taxes generated from the project and within the boundaries of the District.
6) Community engagement. The City shall follow standard protocol and processes for collecting community
input on every proposed TIF district. At a minimum, this typically includes advance notice, online engagement
and in person public meetings.
7) Input from School District and County. A draft of the TIF plan shall be provided to Hennepin County and to
the school district where the district is located for review and comment prior to the public hearing.
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8) Establishment of District. Unless unique circumstances apply, establishment of a TIF District should coincide
with the execution of one or more TIF Agreements capable of satisfying the outcomes identified in the TIF
Plan.
9) Early De-certification. Within one year after the 5-year statutory deadline, the City should consider early
decertification of the District if no debts or contractual obligations for the incremental taxes remain. Within
one year after all debts and obligations have been satisfied, the City should consider whether to de-certify the
District early. Consideration should be given to the potential benefits from pooling available funds before the
District is de-certified.
EXPECTATIONS FOR TIF SUPPORTED REDEVELOPMENT PROJECTS
1) Site Plan. The site plan for any project supported with TIF shall be designed to substantially follow the
regulations and guidelines as adopted in Edina’s Comprehensive Plan, Small Area Plans, Development
Framework and (as applicable) Southdale Design Experience Guidelines. The expected quality and nature of
site plan improvements is highest when TIF is contributed. Redevelopment projects supported with TIF shall
fully satisfy each of the following aspects as described in adopted plans and guidelines:
a. Subdivision of superblocks to establish a transportation grid with blocks approximately 200 ft by 200 ft or
as appropriate for the size of the property
b. Creation of new streets, sidewalks and trails to allow through traffic by the general public (recognizing
that redevelopment of neighboring parcels may be necessary to complete the through route)
c. Creation of new public realm spaces including streetscaping, lighting and public art
d. Minimum building setbacks (such as 30 ft and 50 ft) are considered “build to” lines
e. Applicable street room typologies implemented
f. Massing, recessed upper floors, building articulation, and fenestration provided
g. Perimeter spaces that front a public street or similar route with public easement shall be occupiable and
activated. Storage, parking, and utility spaces shall be kept to the bare minimum along public routes
City Council shall make the final determination of whether the site plans adequately abide by the
Comprehensive Plan and other adopted plans and guidelines to warrant the use of TIF.
2) Exterior Finish Materials. The types of finish materials on portions of the building directly visible from a street
or other public realm space shall comply with Edina’s City Code. For TIF supported projects, a high degree of
stone, brick and other natural materials is preferred.
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3) Public Realm Experience. A vibrant and welcoming public realm experience is essential for every project
supported with TIF. Examples of contributing elements include (but are not limited to): sidewalks wider than
required by City Code, public plaza, public seating areas, integrated transit shelters, landscaping, hardscaping,
commercial storefronts and residential walk-up units that directly engage the public realm areas. Under the TIF
Act, reimbursement through TIF for public realm amenities will need to be reviewed on a case-by-case basis,
but will be required even if not subject to TIF reimbursement.
4) Public Art. Projects supported with TIF shall incorporate permanent public art as an integral part of the public
realm experience. Each public art installation shall be secured with an easement that provides for the
maintenance and permanence of the art element by the owner. The public art elements shall be consistent with
those contained in the approved site plans. Additional art elements may be required when TIF is contributed.
Examples of additional art elements include but are not limited to: sculptures, murals, sidewalk poetry, water
features, light and sound displays, and rotating art installations. City Council shall make the final determination of
whether the quantity and type of public art elements warrant the use of TIF. Under the TIF Act, reimbursement
through TIF for public art will need to be reviewed on a case-by-case basis, but public art will be required even if
not subject to TIF reimbursement.
Members from the Edina community shall be engaged as part of the artist-selection process and/or the art-
selection process. The developer shall make the final art selection keeping in mind the recommendation and
input from the community members.
5) Public dedication or public easements. All public benefits in TIF supported projects shall either be owned by the
City or HRA, dedicated to the City or be secured with permanent easements (to the City) or restrictive
covenants to ensure that the public has long-term access to and long-lasting benefits from the improvements.
6) Affordable Housing Units. Multi-family development projects supported with TIF should incorporate any
required affordable units into the site, as opposed to providing the prescribed contribution to Edina’s
Affordable Housing Trust Fund.
7) Parking. Only those parking stalls that are available to the general public throughout all times of the day and
year shall be considered to be supported with TIF. Parking stalls that are dedicated for the exclusive use by
residents or tenants will not be eligible for TIF support. The public parking stalls shall be easily identified as
public parking with exterior signage near the entrance and wayfinding signage on the site.
8) Environmental Sustainability. Edina’s Sustainable Buildings Policy shall apply to all projects supported with TIF.
For TIF-supported projects, the applicable Sustainable Building Rating System shall be LEED Silver or better.
Electrification of heating systems and/or on-site renewable energy generation are preferred in TIF-supported
projects; projects should achieve at least 2 total LEED points between Grid Harmonization and Renewable
Energy credits. Certification of the completed building(s) shall be required and compliance shall be renewed (by
the owner) throughout at least the term of the TIF District at the frequency identified by the certifying agency.
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9) Collaborative Partnerships. The developer should engage local neighborhood groups and other community and
regional organizations to provide the highest reasonable level of collaboration to ensure a successful project.
Community partners could include business and trade associations, private and non-profit groups and
associations, governmental agencies and similar stakeholders and benefactors. Evidence of effective engagement
should be provided in the TIF Application. This collaborative approach is also helpful to secure grants from
other agencies.
10) Mitigation of Construction Disruption. As part of the Go-Ahead letter by which the developer commits to
proceed with the project and prior to the site preparation and construction, a Construction Mitigation Plan
(CMP) shall be submitted to the City that identifies the developer’s and general contractor’s strategies to
address the inconveniences that occur to the neighbors and general public during the construction period.
Topics to be addressed in CMP include: milestones and methods to provide advance notice to neighbors; off-
street parking for contractors and suppliers; delivery routes for construction vehicles; queuing locations for
large vehicles serving the construction site; temporary street, lane or sidewalk closures; temporary detours for
vehicles, pedestrians, bicycles and transit vehicles; construction site security; and strategies to mitigate dust,
vibrations and noise. The CMP must also identify the responsible person to be contacted by neighbors when
questions or problems occur. Phone number and email address of the responsible job site person shall be made
available.
11) Actions to Promote Diversity and Equity in Redevelopment. The development and construction of projects
with TIF support shall include best efforts by the developer and general contractor to provide employment
opportunities for people that are under-represented in the construction field, including women and people of
color. Similar efforts shall be made to structure contracts so that businesses owned by people under-
represented in the construction industry (including majority women-owned, majority minority owned, certified
MBE, WBE and VBE) have a fair and realistic opportunity to provide goods and services to the project.
The developer’s plan and strategy to achieve these goals (commonly referred to as Equity and Inclusion
Outreach Plan or EIOP) shall be included in the TIF Agreement. The plan shall identify employment and
contracting goals for women and people of color. The plan must also include an intentional strategy to pursue
and achieve these goals to the greatest extent practical. The plan shall also include the developer’s and general
contractor’s practices to pursue equity, including how they participate in workforce development programs and
similar activities in the Twin Cities.
Standards and recommendations from State of Minnesota Department of Human Rights, Hennepin County and
similar local and regional agencies and trade associations shall be considered as guidance when identifying these
goals and strategies.
As a condition of the Certificate of Completion, the developer shall report on the implementation of the plan
as well as the outcomes. Penalties shall apply when the developer fails to make a good faith effort to implement
this plan.
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USE OF TIF IN EDINA
1) TIF to deliver public benefits. TIF will only be used to enable a developer to complete a project that delivers
exceptional public benefits. An increase in property tax base alone is not sufficient to warrant the use of TIF.
2) TIF may be considered to encourage, stimulate, and attract desirable development and/or redevelopment of a
scale and quality that would not occur without the use of TIF.
3) Requests for TIF support after preliminary zoning has been granted may result in changes to the preliminary
site plan to comply with this TIF policy. Any delays or costs due to a re-review are the sole responsibility of the
developer.
4) TIF should be used only to fill a financial gap that is unable to be satisfied by traditional equity and debt sources.
TIF assistance will not be provided to projects that have the financial feasibility to proceed without the use of
TIF. TIF will not be provided solely to provide an excessive contingency to the project or broaden a
developer’s profit margins on a project.
5) Developer’s Capital Stack. TIF should be considered the last money into the deal for market-rate projects
provided with TIF support. This includes multi-family housing where 20% or fewer of the units are affordably
priced in accordance with Edina’s multifamily affordable housing policy.
6) Pay as You Go TIF Notes. TIF should only be provided to developers of market-rate projects on a pay-as-you-
go basis. In certain cases, up-front or other forms of assistance may be considered by the City but will be at the
sole discretion of the City Council or HRA.
7) Interest Rate. The interest paid on TIF Notes shall be consistent with the typical interest rate paid in the
marketplace for the type of project. The interest rate paid on the TIF Note should not exceed the interest rate
underwritten for the permanent financing.
8) The City reserves the right to approve or reject the use of TIF, the amount of TIF, and the total term, on a
case by case basis, taking into consideration established policies, project criteria, and demand on services in
relation to the potential benefits from the project. Deviations from this policy shall be allowed if specifically
approved by the City Council or HRA.
9) Impact on City Services. TIF will not be used to support development projects that place excessive demands on
municipal services or other capital or operating expenditures of the City.
10) Financial Analysis. The applicant shall provide to the City and its financial advisor all information necessary to
conduct a financial analysis of the proposed project. This information must be complete and accurate.
Falsification or manipulation of the financial information shall be terms for immediate disqualification of
consideration.
11) Financial Returns to Developer. The financial returns to the developer shall be within the typical industry
norms for the type and scale of the project. The use of TIF shall be limited to increasing the returns to the
lower level of the normal range.
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12) Projections of Incremental Taxes. The Financial Advisor shall use realistic projections for the value of
incremental taxes generated over time. The amount of TIF pledged shall not exceed the amount projected to
be generated from the completed project.
13) Prior to approval of the Term Sheet, the developer shall provide any surveys, required market and financial
feasibility studies, appraisals, environmental studies, soil boring information for the project, and other
information or data that the City or its legal and financial consultants may require in order to proceed with an
independent underwriting. Such information is subject to the Minnesota Government Data Practices Act and
may be public information at the time of submission. Proprietary information will be kept non-public to the
extent allowed by Minnesota statute.
14) Financial Guarantees. In the event that a type of TIF support other than Pay-as-you-go Note is used, thedeveloper
shall provide adequate financial guarantees to ensure completion of the project and the repayment of the tax
increment financing in the event that the project fails to be completed. Types off guarantees may include, but are
not limited to, assessment agreements, insurance, letters of credit, etc.
15) Developer experience and capacity. Any developer requesting TIF shall demonstrate past success in real estate
development as well as specific capability in the type and scale of development proposed. As part of the TIF
Application, the developer shall submit a list of critical members of the development team that identifies
professional qualifications and references.
16) Inflated Fees not acceptable. The developer fees, soft costs and operating expenses included in the pro forma
must be reasonable and typical for the industry. Inflated fees, unreasonable expense categories and excessive
contingencies will not be accepted.
17) Look back. The TIF agreement will include “look back” provisions to ensure that the TIF was actually needed
and shall include early termination of TIF Note payments and/or “claw back” provisions if it is determined that
TIF was not needed at the level identified in the TIF Agreement. The clawback provision may be waived for tax-
credit and similar affordable housing developments.
18) Real Estate Transactions. TIF shall not be used when land acquisition costs exceed market land costs.
Acquisition costs shall be scrutinized to ensure that the purchase price is fair and reasonable in relation to
recent comparable transactions. If deemed necessary by the City, a current real estate appraisal prepared by an
independent appraiser selected by the City shall be provided to validate the fair market value of the land in as-is
condition. A high purchase price alone is not sufficient to warrant the use of TIF.
19) New and Retained Job Opportunities. When jobs are created or retained, preference should be given to jobs
that are not currently located within the City. TIF will not be used for projects that would give a significant
financial advantage over similar businesses located in the City.
20) Maximum TIF contribution. The principal amount of TIF shall be justified by the “but for” evaluation and shall
not exceed the value of exceptional public benefits delivered by the completed market rate project.
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21) Delivery of TIF Note(s). TIF Notes shall only be delivered to the developer (and be interest-bearing and
payable) after the completion of the full project, delivery of the public easements, issuance of Certificate of
Occupancy, certification of final costs, documentation of final equity and inclusion outcomes and other key
parameters identified in the TIF Redevelopment Agreement. A Certificate of Completion shall be issued by the
City/HRA to confirm completion of all TIF related requirements.
22) Park Dedication Fees. When TIF is used to support development of new outdoor publicly available spaces such
as public plaza, public courtyard or similar public space, the value of such spaces shall not be deducted from any
Park Dedication Fees due from the market-rate redevelopment project.
23) Grant Funding. Grant funding from other agencies shall be pursued when TIF is used for a development project.
The amount of TIF provided may be reduced depending on the amount of grant funding received. The total
grant funding received shall be included in the pro formas when the “look back” is calculated.
24) Business Subsidy Laws. The City will require compliance with the State of Minnesota Business Subsidy Laws in
Minnesota Statutes, Section 116J.993 through 116.997, unless the project meets one of the business subsidy
exceptions.
25) Pooling. When pooled TIF funds are available from a different TIF District, their use should be prioritized to
provide affordable housing in a greater amount, longer term, or lower target income than what is usually
achieved using other City policies. Other uses of pooled funds shall be at the direction of the City Council or
HRA.
# # #
☒City Council Approved: 2011
☐City-Wide Revised: Click here to enter a date.
☐Department
City of Edina Policy
Tax Increment Financing Policy
BACKGROUND
The City of Edina has statutory authority to use Tax Increment Financing (TIF) pursuant to Minnesota State
Statutes Section 469.174-469.1799 (the TIF Act). TIF uses the increased property taxes generated by new real
estate development within defined geographic districts to pay for certain costs associated with new development
(including but not limited to affordable housing) as well as related public infrastructure and public realm spaces.
The City’s mission is “…to provide effective and valued public services, maintain a sound public infrastructure,
offer premier public facilities and guide the development and redevelopment of lands, all in a manner that sustains
and improves the health and uncommonly high quality of life enjoyed by our residents and businesses.” (Source:
2015 Vision Edina).
The land within the City boundaries has been substantially built-out for more than a decade and many of the older
properties are in the “redevelopment” phase. In order to construct a new structure, an older structure that is
unsound, outdated, or obsolete must typically be removed.
In most cases, development projects in Edina are privately funded using traditional debt and equity sources. From
time-to-time, however, the City has found it necessary to provide financial support for development projects that
deliver outstanding benefits to the community and that could not be accomplished without public financial
involvement.
As early as the 1980s, the City used TIF to help deliver desired commercial and multifamily development served
by public infrastructure elements including roads, sidewalks, utilities, public parking, and public realm spaces like
parks and plazas. TIF was essential to construct the commercial, residential and public elements at Edinborough
Park and Centennial Lakes Park (including affordable housing). TIF was also essential to fund public parking at 50th
and France and to transform the Grandview District from an industrial area to a mixture of residential,
commercial and civic uses with public parking. Historically, the use of TIF in Edina has not applied the full breadth
of authority allowed by the TIF Act. Historically, Edina has taken a more restrictive view on the use of TIF than
allowed by Minnesota Statute.
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PURPOSE OF POLICY
While most redevelopment projects in Edina are privately financed, on certain occasions, the City may
find it necessary to provide financial support in order to overcome unusual hurdles and to achieve
extraordinary benefits to the general public. The purpose of this policy is to:
• Limit the use of TIF to only projects that deliver extraordinary permanent benefits to the general public that
are better than the minimum established in City Code.
• Clarify that the use of TIF in Edina will be more limited than allowed by Minnesota Statute
• Establish criteria and guidelines for where new TIF Districts are established and how incremental taxes are
utilized in Edina.
• Ensure that TIF is used in a transparent, consistent and equitable manner to provide value to the community.
• Ensure that TIF is used to deliver both short-term and long-term improvements that are a benefit to the
general public in Edina.
This policy provides guidance to developers, property owners, staff, and the community at large regarding Edina’s
use of Tax Increment Financing as a public finance tool to attract and support high quality development that
contributes to a strong property tax base and to the high quality of life in Edina. For the purpose of this policy, the
“City” shall also mean the Edina Housing and Redevelopment Authority (HRA), which assists in a variety of
housing, redevelopment, and economic development activities for the City of Edina.
PUBLIC BENEFITS PURSUED WITH TIF
In addition to the Minnesota TIF Statutes, Edina applies an additional expectation that the use of TIF will deliver
permanent benefits to the general public other than tax base growth. Edina’s Comprehensive Plan establishes
guidance for the anticipated changes in land use and related systems for the next decade. Most land use changes
are anticipated to occur in commercial and industrial areas. Many of the preferred outcomes identified in the
Comprehensive Plan include changes to transform single use sites to mixed uses that provide a strong tax base,
improved connectivity and access for drivers, bicyclists and pedestrians. When necessary, TIF can be used to
achieve many benefits to the community, including:
• Transformational change of properties in a manner compatible with Comprehensive Plan, Small Area
Plans, Development Framework, Sustainability Policy, New Multifamily Affordable Housing Policy and
other Guidelines adopted by the City
• Improvements to the multi-modal transportation network, including roads and infrastructure for motor
vehicles, pedestrians, bicyclists and transit
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Tax Increment Financing Policy
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• Public realm improvements, including green space and placemaking elements including landscaping,
streetscaping and public art
• Public parking facilities that provide shared parking resources for more than one property
• Improvements to public utility networks; including potable water, fire protection, storm sewer and
sanitary sewer
• Stormwater retention and detention systems that benefit more than one property
• Removal of substandard buildings (as defined in MN Statute) that may have a blighting effect on the
community
• Preservation of buildings that are historically or culturally significant to the community
• Remediation of environmental contamination
• Creation and retention of long-term affordable housing at a variety of below-market price points
• Creation and retention of permanent employment opportunities
PROCEDURAL CONSIDERATION OF TIF
1) Authority rests with City Council. Consideration to establish a new TIF District shall be at the sole
discretion of the City Council. Administration and determine of specific uses of incremental property
taxes generated therein shall be at the discretion of the City Council or HRA. Since each development
project is unique, the use of TIF shall be considered on a case-by-case basis.
2) Preparation of TIF documents. The Edina Housing and Redevelopment Authority shall provide initial
direction regarding the potential use of TIF, shall review the Term Sheet that identifies the proposed use
of TIF on each project and shall review and approve the contractual documents such as TIF Agreements.
3) Eligible Applicants. Only current property owners or developers that have site control are eligible to apply
for TIF. Evidence of site control shall be provided in the TIF Application.
4) Negotiation of TIF terms. After the TIF Application is submitted, the developer shall negotiate financing
terms only with the City Manager, HRA Executive Director or designee. The prepared terms and
proposed contract shall then be presented to the HRA Board and the City Council as a whole.
5) Application Form. Developers that request TIF shall submit a completed application in a form approved by
the City Manager or HRA Executive Director. The application shall identify the anticipated financing
sources, including equity, type of debt, external grants/contributions, and the amount and type of TIF
support requested to resolve the financing gap. A complete development sources and uses pro forma shall
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Tax Increment Financing Policy
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be submitted, as well as an operating pro forma based on a stabilized project. The application shall include
calculations that identify the financing gap. This information is required to determine the “but for” test
required under the TIF Act. The application shall also identify extra-ordinary costs to develop the project
in Edina and shall also identify the exceptional public benefits that could be delivered if the project is
completed. The Application shall also address other criteria identified in this document.
6) Application Fee. The application fee shall be $10,000. Fifty percent (50%) of the fee shall accompany the
initial application. The remaining fifty percent (50%) shall be due after the confirmation of a Term Sheet
and prior to the preparation of full contractual documents. Application fees are non-refundable.
7) Use of Third-party Expert Advisors. Expert advisors shall be engaged by the HRA as necessary to ensure
compliance with the TIF Act and to provide expertise to supplement the abilities and capacity of staff.
Typical advisors have expertise in TIF law, public sector development finance, general development
finance, property inspection as it pertains to TIF, and real estate valuation, among other redevelopment
topics. All advisors shall be contracted to the HRA and shall uphold the interests of the HRA and the City
while providing service.
8) Developer Responsible for Fees. The developer shall be solely responsible for the payment of third
expenses pertaining to the developer’s request for TIF support from the time of the request to the
delivery of the Certificate of Completion. Prior to preparation of the Term Sheet, the applicant shall
submit to the City a deposit equal to the total estimated costs for legal and consultant fees. These funds
will be held in a non-interest-bearing escrow and the City will draw upon these funds to pay all related
expenses. Additional funds may be necessary if the scope of the work changes beyond the initial
expectation. Any unused balance shall be returned to the developer upon completion of the process. The
developer shall also be solely responsible for any costs related to requested amendments to the TIF
District or TIF Agreements.
9) Initial Staff Response and Notification of HRA Board. City staff shall review and evaluate the Application
for compliance with the City’s policies. Soon after receipt of a TIF Application, staff should advise the
Edina HRA about the TIF request including the potential public benefits delivered if TIF would be
provided. Staff will then seek approval to engage third party advisors to fully vet the merits of the TIF
request.
10) Preparation of Term Sheet. Staff shall prepare a Term Sheet that summarizes the key terms by which TIF
could be used for the project. The Term Sheet shall be submitted to the Edina HRA for review and
consideration. The Term Sheet should generally be considered after preliminary zoning approval is
obtained. The HRA should provide verbal indication whether they are agreeable to preparation of binding
contracts (commonly known as TIF Agreements) based on the Term Sheet.
11) Creation of TIF District. After consideration of the Term Sheet, staff shall begin the process of establishing
a TIF District to achieve the goals outlined in the Term Sheet.
12) TIF Agreement. Staff shall work with legal and financial advisors to prepare complete and binding legal
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agreements based on the Term Sheet. The TIF Agreement should be considered by the HRA Board
and/or the City Council after final zoning approval is obtained.
13) Building and Zoning Approvals. The provision of TIF is contingent upon receiving all other necessary
project approvals from the City.
FINANCIAL REPORTING AND TRANSPARENCY
1) Mandatory Reporting. The City shall submit all required reports on the use of Tax Increment Financing to
Hennepin County and the Minnesota Office of the State Auditor using the format provided by those agencies.
2) Year in Review Report. Each year, staff shall publish a report that summarizes the use of TIF written in plain
English style. This report shall include the following information for each active TIF District: start and end
dates, debt and contractual obligations, tax collection status, tax base status, and other pertinent information.
This report shall also quantify outcomes when TIF is used to achieve public benefits. This report should be
delivered to the Edina HRA in January and shall be made available to the applicable School District(s) and to
the general public upon request.
3) Website. The City shall post general information on the use of TIF in Edina on the City website.
ESTABLISHMENT OF TIF DISTRICTS
1) Preparation of TIF Plan. The HRA’s Financial Advisor shall prepare the TIF Plan to satisfy the requirements of
Minnesota TIF Statutes. The TIF Plan should be written in plain English style. The TIF Plan should describe the
intended redevelopment and/or housing outcomes and should identify how the use of TIF will help achieve
community goals as defined in the Comprehensive Plan and related plans.
2) Type of District. The type of District established shall be determined by the City Council in accordance with
the limitations contained in Minnesota Statute.
3) Boundaries and Term. The boundaries of each new district should be as small as necessary to achieve the
development goals of the subject properties and adjacent public areas. When establishing a new TIF District,
the shortest statutory term to achieve the desired outcomes should be considered. A longer term should be
considered when pooling is desired.
4) Impact on Municipal Services. The impact of the proposed project on the City’s delivery of services, capital
expenditures and operating expenditures shall be taken into consideration prior to the adoption of a TIF Plan.
5) Fiscal Disparities. Projects utilizing TIF are responsible for paying their share of the Fiscal Disparities
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contribution from the property taxes generated from the project and within the boundaries of the District.
6) Community engagement. The City shall follow standard protocol and processes for collecting community
input on every proposed TIF district. At a minimum, this typically includes advance notice, online engagement
and in person public meetings.
7) Input from School District and County. A draft of the TIF plan shall be provided to Hennepin County and to
the school district where the district is located for review and comment prior to the public hearing.
8) Establishment of District. Unless unique circumstances apply, establishment of a TIF District should coincide
with the execution of one or more TIF Agreements capable of satisfying the outcomes identified in the TIF
Plan.
9) Early De-certification. Within one year after the 5-year statutory deadline, the City should consider early
decertification of the District if no debts or contractual obligations for the incremental taxes remain. Within
one year after all debts and obligations have been satisfied, the City should consider whether to de-certify the
District early. Consideration should be given to the potential benefits from pooling available funds before the
District is de-certified.
EXPECTATIONS FOR TIF SUPPORTED REDEVELOPMENT PROJECTS
1) Site Plan. The site plan for any project supported with TIF shall be designed to substantially follow the
regulations and guidelines as adopted in Edina’s Comprehensive Plan, Small Area Plans, Development
Framework and (as applicable) Southdale Design Experience Guidelines. The expected quality and nature of
site plan improvements is highest when TIF is contributed. Redevelopment projects supported with TIF shall
fully satisfy each of the following aspects as described in adopted plans and guidelines:
a. Subdivision of superblocks to establish a transportation grid with blocks approximately 200 ft by 200 ft or
as appropriate for the size of the property
b. Creation of new streets, sidewalks and trails to allow through traffic by the general public (recognizing
that redevelopment of neighboring parcels may be necessary to complete the through route)
c. Creation of new public realm spaces including streetscaping, lighting and public art
d. Minimum building setbacks (such as 30 ft and 50 ft) are considered “build to” lines
e. Applicable street room typologies implemented
f. Massing, recessed upper floors, building articulation, and fenestration provided
g. Perimeter spaces that front a public street or similar route with public easement shall be occupiable and
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activated. Storage, parking, and utility spaces shall be kept to the bare minimum along public routes
City Council shall make the final determination of whether the site plans adequately abide by the
Comprehensive Plan and other adopted plans and guidelines to warrant the use of TIF.
2) Exterior Finish Materials. The types of finish materials on portions of the building directly visible from a street
or other public realm space shall comply with Edina’s City Code. For TIF supported projects, a high degree of
stone, brick and other natural materials is preferred.
3) Public Realm Experience. A vibrant and welcoming public realm experience is essential for every project
supported with TIF. Examples of contributing elements include (but are not limited to): sidewalks wider than
required by City Code, public plaza, public seating areas, integrated transit shelters, landscaping, hardscaping,
commercial storefronts and residential walk-up units that directly engage the public realm areas. Under the TIF
Act, reimbursement through TIF for public realm amenities will need to be reviewed on a case-by-case basis,
but will be required even if not subject to TIF reimbursement.
4) Public Art. Projects supported with TIF shall incorporate permanent public art as an integral part of the public
realm experience. Each public art installation shall be secured with an easement that provides for the
maintenance and permanence of the art element by the owner. The public art elements shall be consistent with
those contained in the approved site plans. Additional art elements may be required when TIF is contributed.
Examples of additional art elements include but are not limited to: sculptures, murals, sidewalk poetry, water
features, light and sound displays, and rotating art installations. City Council shall make the final determination of
whether the quantity and type of public art elements warrant the use of TIF. Under the TIF Act, reimbursement
through TIF for public art will need to be reviewed on a case-by-case basis, but public art will be required even if
not subject to TIF reimbursement.
Members from the Edina community shall be engaged as part of the artist-selection process and/or the art-
selection process. The developer shall make the final art selection keeping in mind the recommendation and
input from the community members.
5) Public dedication or public easements. All public benefits in TIF supported projects shall either be owned by the
City or HRA, dedicated to the City or be secured with permanent easements (to the City) or restrictive
covenants to ensure that the public has long-term access to and long-lasting benefits from the improvements.
6) Affordable Housing Units. Multi-family development projects supported with TIF should incorporate any
required affordable units into the site, as opposed to providing the prescribed contribution to Edina’s
Affordable Housing Trust Fund.
7) Public Parking. Only those parking stalls that are available to the general public throughout all times of the day
and year shall be considered to be supported with TIF. Parking stalls that are dedicated for the exclusive use by
residents or tenants will not be eligible for TIF support. The public parking stalls shall be easily identified as
public parking with exterior signage near the entrance and wayfinding signage on the site.
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8) Environmental Sustainability. Edina’s Sustainable Buildings Policy shall apply to all projects supported with TIF.
For TIF-supported projects, the applicable Sustainable Building Rating System shall be LEED Silver or better.
Electrification of heating systems and/or on-site renewable energy generation are preferred in TIF-supported
projects; projects should achieve at least 2 total LEED points between Grid Harmonization and Renewable
Energy credits. Certification of the completed building(s) shall be required and compliance shall be renewed (by
the owner) throughout at least the term of the TIF District at the frequency identified by the certifying agency.
9) Collaborative Partnerships. The developer should engage local neighborhood groups and other community and
regional organizations to provide the highest reasonable level of collaboration to ensure a successful project.
Community partners could include business and trade associations, private and non-profit groups and
associations, governmental agencies and similar stakeholders and benefactors. Evidence of effective engagement
should be provided in the TIF Application. This collaborative approach is also helpful to secure grants from
other agencies.
10) Mitigation of Construction Disruption. As part of the Go-Ahead letter by which the developer commits to
proceed with the project and prior to the site preparation and construction, a Construction Mitigation Plan
(CMP) shall be submitted to the City that identifies the developer’s and general contractor’s strategies to
address the inconveniences that occur to the neighbors and general public during the construction period.
Topics to be addressed in CMP include: milestones and methods to provide advance notice to neighbors; off-
street parking for contractors and suppliers; delivery routes for construction vehicles; queuing locations for
large vehicles serving the construction site; temporary street, lane or sidewalk closures; temporary detours for
vehicles, pedestrians, bicycles and transit vehicles; construction site security; and strategies to mitigate dust,
vibrations and noise. The CMP must also identify the responsible person to be contacted by neighbors when
questions or problems occur. Phone number and email address of the responsible job site person shall be made
available.
11) Fair Labor standards. The developer and general contractor shall certify that all applicable state and federal
labor laws have been satisfied. Failure to comply with applicable state and federal labor laws shall be considered
a default with appropriate penalties.
11)12) Actions to Promote Diversity and Equity in Redevelopment. The development and construction of
projects with TIF support shall include best efforts by the developer and general contractor to provide
employment opportunities for people that are under-represented in the construction field, including women
and people of color. Similar efforts shall be made to structure contracts so that businesses owned by people
under-represented in the construction industry (including majority women-owned, majority minority owned,
certified MBE, WBE and VBE) have a fair and realistic opportunity to provide goods and services to the project.
The developer’s plan and strategy to achieve these goals (commonly referred to as Equity and Inclusion
Outreach Plan or EIOP) shall be included in the TIF Agreement. The plan shall identify employment and
contracting goals for women and people of color. The plan must also include an intentional strategy to pursue
and achieve these goals to the greatest extent practical. The plan shall also include the developer’s and general
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contractor’s practices to pursue equity, including how they participate in workforce development programs and
similar activities in the Twin Cities.
Standards and recommendations from State of Minnesota Department of Human Rights, Hennepin County and
similar local and regional agencies and trade associations shall be considered as guidance when identifying these
goals and strategies.
As a condition of the Certificate of Completion, the developer shall report on the implementation of the plan
as well as the outcomes. Penalties shall apply when the developer fails to make a good faith effort to implement
this plan.
USE OF TIF IN EDINA
1) TIF to deliver public benefits. TIF will only be used to enable a developer to complete a project that delivers
exceptional public benefits. An increase in property tax base alone is not sufficient to warrant the use of TIF.
2) “But for” Test. Any use of TIF shall be subject to the “but for” test as prescribed in Minnesota Statute; meaning
that “but for” the use of TIF, a project of the size, scale and quality proposed would not occur. The public
benefits delivered by the project would also not occur on the site without the use of TIF.
2) TIF may be considered to encourage, stimulate, and attract desirable development and/or redevelopment of a
scale and quality that would not occur without the use of TIF.
3) Final Site Plan Approvals. Requests for TIF support after preliminary zoning has been granted may result in
changes to the preliminary site plan to comply with this TIF policy. Any delays or costs due to a re-review are
the sole responsibility of the developer.
4) Financial Gap. TIF should be used only be considered to fill a financial gap that is unable to be satisfied by
traditional equity and debt sources. TIF assistance will not be provided to projects that have the financial
feasibility to proceed without the use of TIF. TIF will not be provided solely to provide an excessive
contingency to the project or broaden a developer’s profit margins on a project.
5) Developer’s Capital Stack. TIF should be considered the last money into the deal for market-rate projects
provided with TIF support. This includes multi-family housing where 20% or fewer of the units are affordably
priced in accordance with Edina’s multifamily affordable housing policy.
6) Pay as You Go TIF Notes. TIF should only be provided to developers of market-rate projects on a pay-as-you-
go basis. In certain cases, up-front or other forms of assistance may be considered by the City but will be at the
sole discretion of the City Council or HRA.
7) Interest Rate. The interest paid on TIF Notes shall be consistent with the typical interest rate paid in the
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marketplace for the type of project. The interest rate paid on the TIF Note should not exceed the interest rate
underwritten for the permanent financing.
8) Deviations from Policy. The City reserves the right to approve or reject the use of TIF, the amount of TIF, and
the total term, on a case by case basis, taking into consideration established policies, project criteria, and
demand on services in relation to the potential benefits from the project. Deviations from this policy shall be
allowed if specifically approved by the City Council or HRA.
9) Impact on City Services. TIF will not be used to support development projects that place excessive demands on
municipal services or other capital or operating expenditures of the City.
10) Financial Analysis. The applicant shall provide to the City and its financial advisor all information necessary to
conduct a financial analysis of the proposed project. This information must be complete and accurate.
Falsification or manipulation of the financial information shall be terms for immediate disqualification of
consideration.
11) Financial Returns to Developer. The financial returns to the developer shall be within the typical industry
norms for the type and scale of the project. The use of TIF shall be limited to increasing the returns to the
lower level of the normal range.
12) Projections of Incremental Taxes. The Financial Advisor shall use realistic projections for the value of
incremental taxes generated over time. The amount of TIF pledged shall not exceed the amount projected to
be generated from the completed project.
13) Access to Complete Site and Project Information. Prior to approval of the Term Sheet, the developer shall
provide any surveys, required market and financial feasibility studies, appraisals, environmental studies, soil
boring information for the project, and other information or data that the City or its legal and financial
consultants may require in order to proceed with an independent underwriting. Such information is subject to
the Minnesota Government Data Practices Act and may be public information at the time of submission.
Proprietary information will be kept non-public to the extent allowed by Minnesota statute.
14) Financial Guarantees. In the event that a type of TIF support other than Pay-as-you-go Note is used, the
developer shall provide adequate financial guarantees to ensure completion of the project and the repayment of
the tax increment financing in the event that the project fails to be completed. Types off guarantees may include,
but are not limited to, assessment agreements, insurance, letters of credit, etc.
15) Developer experience and capacity. Any developer requesting TIF shall demonstrate past success in real estate
development as well as specific capability in the type and scale of development proposed. As part of the TIF
Application, the developer shall submit a list of critical members of the development team that identifies
professional qualifications and references.
16) Inflated Fees not acceptable. The developer fees, soft costs and operating expenses included in the pro forma
must be reasonable and typical for the industry. Inflated fees, unreasonable expense categories and excessive
contingencies will not be accepted.
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17) Look back. The TIF agreement will include “look back” provisions to ensure that the TIF was actually needed
and shall include early termination of TIF Note payments and/or “claw back” provisions if it is determined that
TIF was not needed at the level identified in the TIF Agreement. The clawback provision may be waived for tax-
credit and similar affordable housing developments.
18) Real Estate Transactions. TIF shall not be used when land acquisition costs exceed market land costs.
Acquisition costs shall be scrutinized to ensure that the purchase price is fair and reasonable in relation to
recent comparable transactions. If deemed necessary by the City, a current real estate appraisal prepared by an
independent appraiser selected by the City shall be provided to validate the fair market value of the land in as-is
condition. A high purchase price alone is not sufficient to warrant the use of TIF.
19) New and Retained Job Opportunities. When jobs are created or retained, preference should be given to jobs
that are not currently located within the City. TIF will not be used for projects that would give a significant
financial advantage over similar businesses located in the City.
19)20) Maximum TIF contribution. The principal amount of TIF shall be justified by the “but for” evaluation
and shall not exceed the value of exceptional public benefits delivered by the completed market rate project.
20)21) Delivery of TIF Note(s). TIF Notes shall only be delivered to the developer (and be interest-bearing
and payable) after the completion of the full project, delivery of the public easements, issuance of Certificate of
Occupancy, certification of final costs, documentation of final equity and inclusion outcomes and other key
parameters identified in the TIF Redevelopment Agreement. A Certificate of Completion shall be issued by the
City/HRA to confirm completion of all TIF related requirements.
21)22) Park Dedication Fees. When TIF is used to support development of new outdoor publicly available
spaces such as public plaza, public courtyard or similar public space, the value of such spaces shall not be
deducted from any Park Dedication Fees due from the market-rate redevelopment project.
22)23) Grant Funding. Grant funding from other agencies shall be pursued when TIF is used for a
development project. The amount of TIF provided may be reduced depending on the amount of grant funding
received. The total grant funding received shall be included in the pro formas when the “look back” is
calculated.
23)24) Business Subsidy Laws. The City will require compliance with the State of Minnesota Business Subsidy
Laws in Minnesota Statutes, Section 116J.993 through 116J.997, unless the project meets one of the business
subsidy exceptions.
24)25) Pooling. When pooled TIF funds are available from a different TIF District, their use should be
prioritized to provide affordable housing in a greater amount, longer term, or lower target income than what is
usually achieved using other City policies. Other uses of pooled funds shall be at the direction of the City
Council or HRA.
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# # #
☒City Council Approved: 2011
☐City-Wide Revised: Click here to enter a date.
☐Department
City of Edina Policy
Tax Increment Financing Policy
BACKGROUND
The City of Edina has statutory authority to use Tax Increment Financing (TIF) pursuant to Minnesota State
Statutes Section 469.174-469.1799 (the TIF Act). TIF uses the increased property taxes generated by new real
estate development within defined geographic districts to pay for certain costs associated with new development
(including but not limited to affordable housing) as well as related public infrastructure and public realm spaces.
The City’s mission is “…to provide effective and valued public services, maintain a sound public infrastructure,
offer premier public facilities and guide the development and redevelopment of lands, all in a manner that sustains
and improves the health and uncommonly high quality of life enjoyed by our residents and businesses.” (Source:
2015 Vision Edina).
The land within the City boundaries has been substantially built-out for more than a decade and many of the older
properties are in the “redevelopment” phase. In order to construct a new structure, an older structure that is
unsound, outdated, or obsolete must typically be removed.
In most cases, development projects in Edina are privately funded using traditional debt and equity sources. From
time-to-time, however, the City has found it necessary to provide financial support for development projects that
deliver outstanding benefits to the community and that could not be accomplished without public financial
involvement.
As early as the 1980s, the City used TIF to help deliver desired commercial and multifamily development served
by public infrastructure elements including roads, sidewalks, utilities, public parking, and public realm spaces like
parks and plazas. TIF was essential to construct the commercial, residential and public elements at Edinborough
Park and Centennial Lakes Park (including affordable housing). TIF was also essential to fund public parking at 50th
and France and to transform the Grandview District from an industrial area to a mixture of residential,
commercial and civic uses with public parking. Historically, Edina has taken a more restrictive view on the use of
TIF than allowed by Minnesota Statute.
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PURPOSE OF POLICY
While most redevelopment projects in Edina are privately financed, on certain occasions, the City may
find it necessary to provide financial support in order to overcome unusual hurdles and to achieve
extraordinary benefits to the general public. The purpose of this policy is to:
Limit the use of TIF to only projects that deliver permanent benefits to the general public that are better than
the minimum established in City Code
Clarify that the use of TIF in Edina will be more limited than allowed by Minnesota Statute
Establish criteria and guidelines for where new TIF Districts are established and how incremental taxes are
utilized in Edina.
Ensure that TIF is used in a transparent, consistent and equitable manner to provide value to the community.
Ensure that TIF is used to deliver both short-term and long-term improvements that are a benefit to the
general public in Edina.
This policy provides guidance to developers, property owners, staff, and the community at large regarding Edina’s
use of Tax Increment Financing as a public finance tool to attract and support high quality development that
contributes to a strong property tax base and to the high quality of life in Edina. For the purpose of this policy, the
“City” shall also mean the Edina Housing and Redevelopment Authority (HRA), which assists in a variety of
housing, redevelopment, and economic development activities for the City of Edina.
PUBLIC BENEFITS PURSUED WITH TIF
In addition to the Minnesota TIF Statutes, Edina applies an additional expectation that the use of TIF will deliver
permanent benefits to the general public other than tax base growth. Edina’s Comprehensive Plan establishes
guidance for the anticipated changes in land use and related systems for the next decade. Most land use changes
are anticipated to occur in commercial and industrial areas. Many of the preferred outcomes identified in the
Comprehensive Plan include changes to transform single use sites to mixed uses that provide a strong tax base,
improved connectivity and access for drivers, bicyclists and pedestrians. When necessary, TIF can be used to
achieve many benefits to the community, including:
Transformational change of properties in a manner compatible with Comprehensive Plan, Small Area
Plans, Development Framework, Sustainability Policy, New Multifamily Affordable Housing Policy and
other Guidelines adopted by the City
Improvements to the multi-modal transportation network, including roads and infrastructure for motor
vehicles, pedestrians, bicyclists and transit
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Public realm improvements, including green space and placemaking elements including landscaping,
streetscaping and public art
Public parking facilities that provide shared parking resources for more than one property
Improvements to public utility networks; including potable water, fire protection, storm sewer and
sanitary sewer
Stormwater retention and detention systems that benefit more than one property
Removal of substandard buildings (as defined in MN Statute) that may have a blighting effect on the
community
Preservation of buildings that are historically or culturally significant to the community
Remediation of environmental contamination
Creation and retention of long-term affordable housing at a variety of below-market price points
Creation and retention of permanent employment opportunities
PROCEDURAL CONSIDERATION OF TIF
1) Authority rests with City Council. Consideration to establish a new TIF District shall be at the sole
discretion of the City Council. Administration and determine of specific uses of incremental property
taxes generated therein shall be at the discretion of the City Council or HRA. Since each development
project is unique, the use of TIF shall be considered on a case-by-case basis.
2) Preparation of TIF documents. The Edina Housing and Redevelopment Authority shall provide initial
direction regarding the potential use of TIF, shall review the Term Sheet that identifies the proposed use
of TIF on each project and shall review and approve the contractual documents such as TIF Agreements.
3) Eligible Applicants. Only current property owners or developers that have site control are eligible to apply
for TIF. Evidence of site control shall be provided in the TIF Application.
4) Negotiation of TIF terms. After the TIF Application is submitted, the developer shall negotiate financing
terms only with the City Manager, HRA Executive Director or designee. The prepared terms and
proposed contract shall then be presented to the HRA Board and the City Council as a whole.
5) Application Form. Developers that request TIF shall submit a completed application in a form approved by
the City Manager or HRA Executive Director. The application shall identify the anticipated financing
sources, including equity, type of debt, external grants/contributions, and the amount and type of TIF
support requested to resolve the financing gap. A complete development sources and uses pro forma shall
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be submitted, as well as an operating pro forma based on a stabilized project. The application shall include
calculations that identify the financing gap. This information is required to determine the “but for” test
required under the TIF Act. The application shall also identify extra-ordinary costs to develop the project
in Edina and shall also identify the exceptional public benefits that could be delivered if the project is
completed. The Application shall also address other criteria identified in this document.
6) Application Fee. The application fee shall be $10,000. Fifty percent (50%) of the fee shall accompany the
initial application. The remaining fifty percent (50%) shall be due after the confirmation of a Term Sheet
and prior to the preparation of full contractual documents. Application fees are non-refundable.
7) Use of Third-party Expert Advisors. Expert advisors shall be engaged by the HRA as necessary to ensure
compliance with the TIF Act and to provide expertise to supplement the abilities and capacity of staff.
Typical advisors have expertise in TIF law, public sector development finance, general development
finance, property inspection as it pertains to TIF, and real estate valuation, among other redevelopment
topics. All advisors shall be contracted to the HRA and shall uphold the interests of the HRA and the City
while providing service.
8) Developer Responsible for Fees. The developer shall be solely responsible for the payment of third
expenses pertaining to the developer’s request for TIF support from the time of the request to the
delivery of the Certificate of Completion. Prior to preparation of the Term Sheet, the applicant shall
submit to the City a deposit equal to the total estimated costs for legal and consultant fees. These funds
will be held in a non-interest-bearing escrow and the City will draw upon these funds to pay all related
expenses. Additional funds may be necessary if the scope of the work changes beyond the initial
expectation. Any unused balance shall be returned to the developer upon completion of the process. The
developer shall also be solely responsible for any costs related to requested amendments to the TIF
District or TIF Agreements.
9) Initial Staff Response and Notification of HRA Board. City staff shall review and evaluate the Application
for compliance with the City’s policies. Soon after receipt of a TIF Application, staff should advise the
Edina HRA about the TIF request including the potential public benefits delivered if TIF would be
provided. Staff will then seek approval to engage third party advisors to fully vet the merits of the TIF
request.
10) Preparation of Term Sheet. Staff shall prepare a Term Sheet that summarizes the key terms by which TIF
could be used for the project. The Term Sheet shall be submitted to the Edina HRA for review and
consideration. The Term Sheet should generally be considered after preliminary zoning approval is
obtained. The HRA should provide verbal indication whether they are agreeable to preparation of binding
contracts (commonly known as TIF Agreements) based on the Term Sheet.
11) Creation of TIF District. After consideration of the Term Sheet, staff shall begin the process of establishing
a TIF District to achieve the goals outlined in the Term Sheet.
12) TIF Agreement. Staff shall work with legal and financial advisors to prepare complete and binding legal
agreements based on the Term Sheet. The TIF Agreement should be considered by the HRA Board
and/or the City Council after final zoning approval is obtained.
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13) Building and Zoning Approvals. The provision of TIF is contingent upon receiving all other necessary
project approvals from the City.
FINANCIAL REPORTING AND TRANSPARENCY
1) Mandatory Reporting. The City shall submit all required reports on the use of Tax Increment Financing to
Hennepin County and the Minnesota Office of the State Auditor using the format provided by those agencies.
2) Year in Review Report. Each year, staff shall publish a report that summarizes the use of TIF written in plain
English style. This report shall include the following information for each active TIF District: start and end
dates, debt and contractual obligations, tax collection status, tax base status, and other pertinent information.
This report shall also quantify outcomes when TIF is used to achieve public benefits. This report should be
delivered to the Edina HRA in January and shall be made available to the applicable School District(s) and to
the general public upon request.
3) Website. The City shall post general information on the use of TIF in Edina on the City website.
ESTABLISHMENT OF TIF DISTRICTS
1) Preparation of TIF Plan. The HRA’s Financial Advisor shall prepare the TIF Plan to satisfy the requirements of
Minnesota TIF Statutes. The TIF Plan should be written in plain English style. The TIF Plan should describe the
intended redevelopment and/or housing outcomes and should identify how the use of TIF will help achieve
community goals as defined in the Comprehensive Plan and related plans.
2) Type of District. The type of District established shall be determined by the City Council in accordance with
the limitations contained in Minnesota Statute.
3) Boundaries and Term. The boundaries of each new district should be as small as necessary to achieve the
development goals of the subject properties and adjacent public areas. When establishing a new TIF District,
the shortest statutory term to achieve the desired outcomes should be considered. A longer term should be
considered when pooling is desired.
4) Impact on Municipal Services. The impact of the proposed project on the City’s delivery of services, capital
expenditures and operating expenditures shall be taken into consideration prior to the adoption of a TIF Plan.
5) Fiscal Disparities. Projects utilizing TIF are responsible for paying their share of the Fiscal Disparities
contribution from the property taxes generated from the project and within the boundaries of the District.
6) Community engagement. The City shall follow standard protocol and processes for collecting community
input on every proposed TIF district. At a minimum, this typically includes advance notice, online engagement
and in person public meetings.
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7) Input from School District and County. A draft of the TIF plan shall be provided to Hennepin County and to
the school district where the district is located for review and comment prior to the public hearing.
8) Establishment of District. Unless unique circumstances apply, establishment of a TIF District should coincide
with the execution of one or more TIF Agreements capable of satisfying the outcomes identified in the TIF
Plan.
9) Early De-certification. Within one year after the 5-year statutory deadline, the City should consider early
decertification of the District if no debts or contractual obligations for the incremental taxes remain. Within
one year after all debts and obligations have been satisfied, the City should consider whether to de-certify the
District early. Consideration should be given to the potential benefits from pooling available funds before the
District is de-certified.
EXPECTATIONS FOR TIF SUPPORTED REDEVELOPMENT PROJECTS
1) Site Plan. The site plan for any project supported with TIF shall be designed to substantially follow the
regulations and guidelines as adopted in Edina’s Comprehensive Plan, Small Area Plans, Development
Framework and (as applicable) Southdale Design Experience Guidelines. The expected quality and nature of
site plan improvements is highest when TIF is contributed. Redevelopment projects supported with TIF shall
fully satisfy each of the following aspects as described in adopted plans and guidelines:
a. Subdivision of superblocks to establish a transportation grid with blocks approximately 200 ft by 200 ft or
as appropriate for the size of the property
b. Creation of new streets, sidewalks and trails to allow through traffic by the general public (recognizing
that redevelopment of neighboring parcels may be necessary to complete the through route)
c. Creation of new public realm spaces including streetscaping, lighting and public art
d. Minimum building setbacks (such as 30 ft and 50 ft) are considered “build to” lines
e. Applicable street room typologies implemented
f. Massing, recessed upper floors, building articulation, and fenestration provided
g. Perimeter spaces that front a public street or similar route with public easement shall be occupiable and
activated. Storage, parking, and utility spaces shall be kept to the bare minimum along public routes
City Council shall make the final determination of whether the site plans adequately abide by the
Comprehensive Plan and other adopted plans and guidelines to warrant the use of TIF.
2) Exterior Finish Materials. The types of finish materials on portions of the building directly visible from a street
or other public realm space shall comply with Edina’s City Code. For TIF supported projects, a high degree of
stone, brick and other natural materials is preferred.
City of Edina
Tax Increment Financing Policy
Page 7
3) Public Realm Experience. A vibrant and welcoming public realm experience is essential for every project
supported with TIF. Examples of contributing elements include (but are not limited to): sidewalks wider than
required by City Code, public plaza, public seating areas, integrated transit shelters, landscaping, hardscaping,
commercial storefronts and residential walk-up units that directly engage the public realm areas. Under the TIF
Act, reimbursement through TIF for public realm amenities will need to be reviewed on a case-by-case basis,
but will be required even if not subject to TIF reimbursement.
4) Public Art. Projects supported with TIF shall incorporate permanent public art as an integral part of the public
realm experience. Each public art installation shall be secured with an easement that provides for the
maintenance and permanence of the art element by the owner. The public art elements shall be consistent with
those contained in the approved site plans. Additional art elements may be required when TIF is contributed.
Examples of additional art elements include but are not limited to: sculptures, murals, sidewalk poetry, water
features, light and sound displays, and rotating art installations. City Council shall make the final determination of
whether the quantity and type of public art elements warrant the use of TIF. Under the TIF Act, reimbursement
through TIF for public art will need to be reviewed on a case-by-case basis, but public art will be required even if
not subject to TIF reimbursement.
Members from the Edina community shall be engaged as part of the artist-selection process and/or the art-
selection process. The developer shall make the final art selection keeping in mind the recommendation and
input from the community members.
5) Public dedication or public easements. All public benefits in TIF supported projects shall either be owned by the
City or HRA, dedicated to the City or be secured with permanent easements (to the City) or restrictive
covenants to ensure that the public has long-term access to and long-lasting benefits from the improvements.
6) Affordable Housing Units. Multi-family development projects supported with TIF should incorporate any
required affordable units into the site, as opposed to providing the prescribed contribution to Edina’s
Affordable Housing Trust Fund.
7) Public Parking. Only those parking stalls that are available to the general public throughout all times of the day
and year shall be considered to be supported with TIF. Parking stalls that are dedicated for the exclusive use by
residents or tenants will not be eligible for TIF support. The public parking stalls shall be easily identified as
public parking with exterior signage near the entrance and wayfinding signage on the site.
8) Environmental Sustainability. Edina’s Sustainable Buildings Policy shall apply to all projects supported with TIF.
For TIF-supported projects, the applicable Sustainable Building Rating System shall be LEED Silver or better.
Electrification of heating systems and/or on-site renewable energy generation are preferred in TIF-supported
projects; projects should achieve at least 2 total LEED points between Grid Harmonization and Renewable
Energy credits. Certification of the completed building(s) shall be required and compliance shall be renewed (by
the owner) throughout at least the term of the TIF District at the frequency identified by the certifying agency.
City of Edina
Tax Increment Financing Policy
Page 8
9) Collaborative Partnerships. The developer should engage local neighborhood groups and other community and
regional organizations to provide the highest reasonable level of collaboration to ensure a successful project.
Community partners could include business and trade associations, private and non-profit groups and
associations, governmental agencies and similar stakeholders and benefactors. Evidence of effective engagement
should be provided in the TIF Application. This collaborative approach is also helpful to secure grants from
other agencies.
10) Mitigation of Construction Disruption. As part of the Go-Ahead letter by which the developer commits to
proceed with the project and prior to the site preparation and construction, a Construction Mitigation Plan
(CMP) shall be submitted to the City that identifies the developer’s and general contractor’s strategies to
address the inconveniences that occur to the neighbors and general public during the construction period.
Topics to be addressed in CMP include: milestones and methods to provide advance notice to neighbors; off-
street parking for contractors and suppliers; delivery routes for construction vehicles; queuing locations for
large vehicles serving the construction site; temporary street, lane or sidewalk closures; temporary detours for
vehicles, pedestrians, bicycles and transit vehicles; construction site security; and strategies to mitigate dust,
vibrations and noise. The CMP must also identify the responsible person to be contacted by neighbors when
questions or problems occur. Phone number and email address of the responsible job site person shall be made
available.
11) Fair Labor standards. The developer and general contractor shall certify that all applicable state and federal
labor laws have been satisfied. Failure to comply with applicable state and federal labor laws shall be considered
a default with appropriate penalties.
12) Actions to Promote Diversity and Equity in Redevelopment. The development and construction of projects
with TIF support shall include best efforts by the developer and general contractor to provide employment
opportunities for people that are under-represented in the construction field, including women and people of
color. Similar efforts shall be made to structure contracts so that businesses owned by people under-
represented in the construction industry (including majority women-owned, majority minority owned, certified
MBE, WBE and VBE) have a fair and realistic opportunity to provide goods and services to the project.
The developer’s plan and strategy to achieve these goals (commonly referred to as Equity and Inclusion
Outreach Plan or EIOP) shall be included in the TIF Agreement. The plan shall identify employment and
contracting goals for women and people of color. The plan must also include an intentional strategy to pursue
and achieve these goals to the greatest extent practical. The plan shall also include the developer’s and general
contractor’s practices to pursue equity, including how they participate in workforce development programs and
similar activities in the Twin Cities.
Standards and recommendations from State of Minnesota Department of Human Rights, Hennepin County and
similar local and regional agencies and trade associations shall be considered as guidance when identifying these
goals and strategies.
As a condition of the Certificate of Completion, the developer shall report on the implementation of the plan
as well as the outcomes. Penalties shall apply when the developer fails to make a good faith effort to implement
this plan.
City of Edina
Tax Increment Financing Policy
Page 9
USE OF TIF IN EDINA
1) TIF to deliver public benefits. TIF will only be used to enable a developer to complete a project that delivers
exceptional public benefits. An increase in property tax base alone is not sufficient to warrant the use of TIF.
2) “But for” Test. Any use of TIF shall be subject to the “but for” test as prescribed in Minnesota Statute; meaning
that “but for” the use of TIF, a project of the size, scale and quality proposed would not occur. The public
benefits delivered by the project would also not occur on the site without the use of TIF.
3) Final Site Plan Approvals. Requests for TIF support after preliminary zoning has been granted may result in
changes to the preliminary site plan to comply with this TIF policy. Any delays or costs due to a re-review are
the sole responsibility of the developer.
4) Financial Gap. TIF should only be considered to fill a financial gap that is unable to be satisfied by traditional
equity and debt sources. TIF assistance will not be provided to projects that have the financial feasibility to
proceed without the use of TIF. TIF will not be provided solely to provide an excessive contingency to the
project or broaden a developer’s profit margins on a project.
5) Developer’s Capital Stack. TIF should be considered the last money into the deal for market-rate projects
provided with TIF support. This includes multi-family housing where 20% or fewer of the units are affordably
priced in accordance with Edina’s multifamily affordable housing policy.
6) Pay as You Go TIF Notes. TIF should only be provided to developers of market-rate projects on a pay-as-you-
go basis. In certain cases, up-front or other forms of assistance may be considered by the City but will be at the
sole discretion of the City Council or HRA.
7) Interest Rate. The interest paid on TIF Notes shall be consistent with the typical interest rate paid in the
marketplace for the type of project. The interest rate paid on the TIF Note should not exceed the interest rate
underwritten for the permanent financing.
8) Deviations from Policy. The City reserves the right to approve or reject the use of TIF, the amount of TIF, and
the total term, on a case by case basis, taking into consideration established policies, project criteria, and
demand on services in relation to the potential benefits from the project. Deviations from this policy shall be
allowed if specifically approved by the City Council or HRA.
9) Impact on City Services. TIF will not be used to support development projects that place excessive demands on
municipal services or other capital or operating expenditures of the City.
10) Financial Analysis. The applicant shall provide to the City and its financial advisor all information necessary to
conduct a financial analysis of the proposed project. This information must be complete and accurate.
Falsification or manipulation of the financial information shall be terms for immediate disqualification of
consideration.
City of Edina
Tax Increment Financing Policy
Page 10
11) Financial Returns to Developer. The financial returns to the developer shall be within the typical industry
norms for the type and scale of the project. The use of TIF shall be limited to increasing the returns to the
lower level of the normal range.
12) Projections of Incremental Taxes. The Financial Advisor shall use realistic projections for the value of
incremental taxes generated over time. The amount of TIF pledged shall not exceed the amount projected to
be generated from the completed project.
13) Access to Complete Site and Project Information. Prior to approval of the Term Sheet, the developer shall
provide any surveys, required market and financial feasibility studies, appraisals, environmental studies, soil
boring information for the project, and other information or data that the City or its legal and financial
consultants may require in order to proceed with an independent underwriting. Such information is subject to
the Minnesota Government Data Practices Act and may be public information at the time of submission.
Proprietary information will be kept non-public to the extent allowed by Minnesota statute.
14) Financial Guarantees. In the event that a type of TIF support other than Pay-as-you-go Note is used, the
developer shall provide adequate financial guarantees to ensure completion of the project and the repayment of
the tax increment financing in the event that the project fails to be completed. Types off guarantees may include,
but are not limited to, assessment agreements, insurance, letters of credit, etc.
15) Developer experience and capacity. Any developer requesting TIF shall demonstrate past success in real estate
development as well as specific capability in the type and scale of development proposed. As part of the TIF
Application, the developer shall submit a list of critical members of the development team that identifies
professional qualifications and references.
16) Inflated Fees not acceptable. The developer fees, soft costs and operating expenses included in the pro forma
must be reasonable and typical for the industry. Inflated fees, unreasonable expense categories and excessive
contingencies will not be accepted.
17) Look back. The TIF agreement will include “look back” provisions to ensure that the TIF was actually needed
and shall include early termination of TIF Note payments and/or “claw back” provisions if it is determined that
TIF was not needed at the level identified in the TIF Agreement. The clawback provision may be waived for tax-
credit and similar affordable housing developments.
18) Real Estate Transactions. TIF shall not be used when land acquisition costs exceed market land costs.
Acquisition costs shall be scrutinized to ensure that the purchase price is fair and reasonable in relation to
recent comparable transactions. If deemed necessary by the City, a current real estate appraisal prepared by an
independent appraiser selected by the City shall be provided to validate the fair market value of the land in as-is
condition. A high purchase price alone is not sufficient to warrant the use of TIF.
19) New and Retained Job Opportunities. When jobs are created or retained, preference should be given to jobs
that are not currently located within the City. TIF will not be used for projects that would give a significant
financial advantage over similar businesses located in the City.
City of Edina
Tax Increment Financing Policy
Page 11
20) Maximum TIF contribution. The principal amount of TIF shall be justified by the “but for” evaluation and shall
not exceed the value of exceptional public benefits delivered by the completed market rate project.
21) Delivery of TIF Note(s). TIF Notes shall only be delivered to the developer (and be interest-bearing and
payable) after the completion of the full project, delivery of the public easements, issuance of Certificate of
Occupancy, certification of final costs, documentation of final equity and inclusion outcomes and other key
parameters identified in the TIF Redevelopment Agreement. A Certificate of Completion shall be issued by the
City/HRA to confirm completion of all TIF related requirements.
22) Park Dedication Fees. When TIF is used to support development of new outdoor publicly available spaces such
as public plaza, public courtyard or similar public space, the value of such spaces shall not be deducted from any
Park Dedication Fees due from the market-rate redevelopment project.
23) Grant Funding. Grant funding from other agencies shall be pursued when TIF is used for a development project.
The amount of TIF provided may be reduced depending on the amount of grant funding received. The total
grant funding received shall be included in the pro formas when the “look back” is calculated.
24) Business Subsidy Laws. The City will require compliance with the State of Minnesota Business Subsidy Laws in
Minnesota Statutes, Section 116J.993 through 116J.997, unless the project meets one of the business subsidy
exceptions.
25) Pooling. When pooled TIF funds are available from a different TIF District, their use should be prioritized to
provide affordable housing in a greater amount, longer term, or lower target income than what is usually
achieved using other City policies. Other uses of pooled funds shall be at the direction of the City Council or
HRA.
# # #
Date: November 17, 2022 Agenda Item #: VI I I.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:P otential P rograms for S PAR C F und Information
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action required. For informational purposes only.
I N TR O D U C TI O N:
AT TAC HME N T S:
Description
Staff memo - SPARC programs
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Economic Development / HRA
Phone 952-826-0407 • Fax 952-826-0390 • www.EdinaMN.gov
Date: November 17, 2022
To: Chair and Commissioners of the Edina Housing and Redevelopment Authority
From:
Bill Neuendorf, Economic Development Manager
Re: Potential Programs to Support Business Investment with SPARC Funding
When the $9.65 million SPARC program was established in 2021, it provided Edina with a unique opportunity to
support private investment and economic growth in Edina. These funds can transform underutilized properties,
create jobs, enhance the local economy and create benefits to the general public.
The SPARC program can be a useful tool to promote the general economic development goals as described in the
1977 South East Edina Redevelopment Plan, 2015 Vision Edina and 2020 Comprehensive Plan. The SPARC program
provides a unique opportunity since Edina does not have a dedicated Economic Development Authority.
The state legislation that enabled the SPARC program allows the HRA to support private investment in several ways:
by providing improvements to the private development,
loans or interest rate subsidies to private development,
assistance in any form to the private development; or
by making an equity or similar investment in a corporation, partnership, or limited liability company
To date, the HRA has committed or considered support for three projects that would not be viable without HRA
intervention. These are summarized below:
Committed and Available Funds
Project Description Financial
Contribution Status
Estimated
SPARC
Balance
Edina Theater
$351,000 forgivable
loan + $384,827
direct cost
Exterior pavement project complete, building
renovation complete, parking improvement
contract awarded with 2023 construction;
payment to Mann Theatres, paver contractor,
concrete contractor and design engineer pending
$8,914,000
Edina Innovation Lab $800,000 loan NTE Under review $8,114,000
Fred 2 Apartment –
north-south roadway
access
$2,000,000 grant HRA consent to general terms, final agreements
under review $6,114,000
Housing and Redevelopment Authority
Established 1974
Potential Programs for SPARC Funding
November 17, 2022
Page 2
The Southeast Edina Redevelopment Plan, Vision Edina, and the Comprehensive Plan all identify the desire to
maintain a strong business community and a strong local economy. In order to maximize the value and benefit of
the SPARC funds, staff is evaluating a variety of programs to support a variety of businesses in Edina. At this time,
three types of programs are being evaluated. Consideration is being given to establish a revolving loan fund so that
these monies can be regenerated and re-used to support other projects in the future.
Based on input from the HRA Board, these potential programs will be further refined before a funding proposal is
submitted for approval. HRA participation is only considered when necessary for the financial viability of the
project.
Potential Programs to Encourage Redevelopment and Business Investment
Targeted
Business Types Funding Limits Anticipated Outcomes Notes
New small
tenants
Grants up to 50%
of costs, not to
exceed $25,000
Must create new jobs
Energy efficient
improvements (windows,
doors, high efficiency HVAC,
solar panels)
ADA handicapped access
improvements (entry,
counters, toilets, etc)
Improvements should remain in
building for 5+ years
New small to
medium tenants
Grants or
forgivable loans up
to 50% of costs;
not to exceed
$149,000
Must create new jobs
Any construction – interior
or exterior
Preference given to spaces that have
been chronically vacant
Preference given to first-time
business owners and under-
represented businesses that provide
needed goods and services
Medium to large
tenants
Loans $500,000 +
(below-market
interest rate)
Must create new jobs
Must deliver public benefit
Any construction – interior
or exterior
Intended to establish long-term
revolving loan fund that could be
helpful for many years
Should align with outcomes in Small
Area Plans, Comp Plan or other
City document
Need to assess risk level
Need to determine security in case
of default
Could be deferred or partially
forgiven
Loans $500,000 +
(market-rate
interest)
Forgivable loans
$500,000 +
Equity investment
$500,000 +
END
Date: November 17, 2022 Agenda Item #: VI I I.B.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:HR A P roject S tatus Update Information
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action required; for informational purposes only.
I N TR O D U C TI O N:
An updated P roject Status report is attached. T his report reflects the current status of projects that fall within the
scope of the H R A. T he report also identifies projects that staff are working on for future H R A consideration.
AT TAC HME N T S:
Description
HRA Project Status 11-17-2022
Edina Housing and Redevelopment Authority
Project Status Update
November 17, 2022
Redevelopment Activities
Description Location Status / Next Steps
Edina Theater –
restoration of vacant
property
50 & France,
3911 W. 50th St.
Forgivable Loan Agreement approved. Project
is complete. Loan payment is being processed
with reimbursement anticipated by 12/31/2022.
Grandview Yard:
Applewood Pointe Co-
op and Jester Restaurant
(formerly Public Works
site) – redevelopment of
vacant property
Grandview,
5146 Eden Ave.
Preliminary zoning was approved and property
is under contract for sale; senior co-op
developer is conducting pre-sales meetings;
additional site work is pending based on timing
of pre-sales. Staff will serve as development
manager to prepare the site for sale.
Public roadway
improvements, including
sidewalks, intersection
and pedestrian bridge
Grandview,
Eden & Arcadia
Construction nearly complete for TIF-funded
construction; new pedestrian bridge is being
fabricated with installation anticipated in 2023;
anticipate that all work will be completed in
2023
Maison Green
Apartments (formerly
Perkins) -
Redevelopment of
commercial property
Grandview,
4917 Eden Ave.
TIF Agreement approved; construction is in
progress with completion expected in 2024
Public roadway
improvements
Grandview,
Eden & Grange
Preliminary engineering work beginning for
Eden/Willson/Grange intersection with TIF-
funded construction anticipated 2023-2025
Pentagon Village -
Redevelopment of
commercial property
Pentagon Park,
4815-4901 W.
77th St.
and 7710
Computer Ave.
TIF Agreement approved and three TIF Notes
issued for completed infrastructure.
Work is complete on Lot 1. Lot 2 has been
sold for Marriott hotel with ground breaking
anticipated in 2023. Lot 3 is under construction
for mixed-income apartments. Lot 4 is being
considered for new bank. Lot 5 anticipates new
office, but no proposal at this time.
The Fred Apartments –
Redevelopment of
commercial property
Pentagon Park,
4640 to 4660
W. 77th St.
Construction of the Fred 1 Apartments is in
progress with completion anticipated in 2023.
This project is privately funded without TIF
assistance.
Edina HRA Project Status Update
November 17, 2022
Page 2
Redevelopment Activities
Description Location Status / Next Steps
The Fred 2 Apartments
– Redevelopment of
commercial property
with public access
roadway
Pentagon Park,
4620 W. 77th St.
Staff is preparing a TIF Redevelopment
Agreement with Solhem to provide financial
assistance to the Fred 2 Apartments.
Consideration of this funding proposal is
anticipated in late 2022. The proposal includes
a public easement to connect West 77th to the
Fred Richards Park.
Redevelopment of vacant
commercial property
Pentagon Park
4701 W. 77th St.
A developer submitted a multi-family concept
sketch for review in early 2022. This concept
appears to have died. The 2.3 acre site remains
available for purchase.
Southdale Center –
Redevelopment of
commercial property
Greater
Southdale, 66th
to 69th St.
Staff continues to engage Simon Properties,
Lifetime and Metro Transit to consider how
new investment can be brought to the east half
of the property while pursuing transformation
as envisioned in Southdale Plan and while
retaining transit service.
TIF is not being considered at this time.
Cornelia View Senior
Apartments –
redevelopment of
commercial property
Greater
Southdale
4040 W. 70th St.
TIF and acquisition documents approved;
construction is in progress with completion
expected in 2023.
US Bank Site –
Redevelopment of
commercial property
Greater
Southdale
7001 France
Ave.
The first phase (new US Bank branch) is under
construction with completion anticipated
Spring 2023.
Construction of new housing and new office
anticipated to begin mid 2023.
Redevelopment of vacant
property
Greater
Southdale
7200-7250
France Ave.
Preliminary zoning approved. Developer
reports that TIF will be requested. No request
has been made at this time.
Public benefits on this site could include shared
stormwater and north/south route for vehicles,
pedestrians & bicyclists.
Edina HRA Project Status Update
November 17, 2022
Page 3
Redevelopment Activities
Description Location Status / Next Steps
Southdale Regional
Library - Redevelopment
of commercial/civic
property
Greater
Southdale
7001 York Ave.
Hennepin County is beginning the visioning
process to rebuild a new regional library on
the site and sell the remainder of land for
redevelopment. Hennepin County sets the
schedule.
Edina HRA should consider getting involved to
ensure that affordable housing can be financed
on portions of this site.
Community Health &
Safety Center / Fire
Station #2 –
Redevelopment of vacant
commercial property
Greater
Southdale
4401 W. 76th St.
City staff is reviewing possibilities to subdivide
the site to accommodate new City facility
while transforming the site based on the
Southdale Plan.
HRA involvement may be necessary in the
future if a portion of the site is made available
for private redevelopment.
Edina Innovation Lab –
Restoration of vacant
commercial property
Hwy 100
Business Park,
7201 Metro
Blvd.
Staff is preparing a Loan Agreement to support
the Edina Chamber of Commerce’s efforts to
establish a small business development center
in a portion of a vacant office building. Dubbed
the “Innovation Lab”, this facility will be used
to train entrepreneurs and business owners to
grow their business in Edina and beyond.
HRA funding will be necessary to establish this
program. A proposal will be submitted in late
2022. Full-scale operations are anticipated to
begin in 2023.
SPARC Program City-wide
Staff is exploring potential programs to offer to
encourage redevelopment and job creation.
Initial ideas include: small grants, medium size
forgivable loans and larger interest bearing
loans. The interest bearing loans could be used
to fund a future revolving loan program. A full
proposal is anticipated to be discussed in late
2022 or early 2023.
Edina HRA Project Status Update
November 17, 2022
Page 4
Housing Activities
Description Location Status
Housing Preservation
Program City-wide
Ten houses have been acquired with seven sold
to end-buyers. Three are in the process of
being rehabilitated. Staff is working with
Homes Within Reach to determine next phase.
Home Rehabilitation
Program City-wide 38 applications have been processed. There is
available funding for additional applications.
Metro HRA Family
Affordable Housing
Program
City-wide All four homes have been acquired and
rehabilitated for program participants.
First Generation Down
Payment Assistance
Program
City-wide There are six borrowers thus far, with available
funding for 14 additional borrowers.
Rental Property Tax
Reduction and Resilient
Homes Grant Program
City-wide NOAH building owner training is scheduled for
November 30, 2022.
Economic Development Activities
Description Location Status
Small Business Technical
Assistance Program
(TAP)
City-wide
Providing digital marketing services to 20 local
businesses; working with consultants to
complete scope in Q1 2023
Maintenance of Public
Parking & other public
realm elements at 50th &
France
50th and France
Staff is preparing for HRA-funded landscape
improvements to the South Ramp.
Staff is working with business owners, Business
Association and arts community to consider
how public art (murals, sculpture and live
events) can be incorporated to attract more
customers to the area.
Staff is working with property owners to
prepare for repairs/improvements to the South
parking garage and streetscape in the years
ahead.
Edina HRA Project Status Update
November 17, 2022
Page 5
Economic Development Activities
Description Location Status
Staff continues to engage with property owners
and 50th & France Business Association to
sustain this successful business district.
Maintenance of Public
Parking & other public
realm elements at
Grandview
Grandview
Staff anticipates working with property owners
in 2023 to prepare for repairs/improvements
to the streetscape.
Staff anticipates updating the parking garage
maintenance agreement with Jerry’s
Enterprises in 2023. The current agreement
places much of the cost burden on Jerry’s
while many other properties benefit from this
public parking facility.
Engagement with
business community City-wide
Staff continues to engage with Edina Chamber
of Commerce and other members of the
business community to better understand the
needs and concerns of the commercial and
industrial sectors.
Tax Increment Policy City-wide
Staff is preparing updates to the City’s policy
regarding the use of TIF. The updates are
anticipated to be presented for consideration
in late 2022.
Business Subsidy Policy City-wide
Staff is reviewing the current Business Subsidy
policy and may present updates for
consideration in 2023.
Development Grant
Policy City-wide
Staff is reviewing best-practices for sponsoring
grant applications for private development. A
new policy may be presented in 2023.
Prepared October 27, 2022
Date: November 17, 2022 Agenda Item #: VI I I.C .
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:P entagon Village Lot 4 - Update Information
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action needed; for informational purposes only.
I N TR O D U C TI O N:
T he developer of P entagon Village is under contract to sell Lot 4 to F irst B ank and T rust. T he buyer is a S outh
Dakota based banking corporation with offices currently in Edina and other M innesota locations.
As a condition of the 2018 T I F Redevelopment Agreement, the H R A must provide reasonable consent when
properties are transferred to new owners.
T he proposed site plan is being reviewed under the C ity's typical site plan review process. F inal action on the site
plan review is anticipated on D ecember 6, 2022.
I f the requested site plan changes are approved, staff intends to execute a "C onsent to Transfer" document
prepared by the H R A's legal counsel.
P lease note that no new T I F proceeds are related to this proposed bank. I ncremental property taxes from this site
have already been pledged to support the construction of the new infrastructure, new public plaza and new public
parking elsewhere on the site.
Date: November 17, 2022 Agenda Item #: VI I I.D.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
Advisory C ommunic ation
F rom:S tephanie Hawkinson, Affordable Housing
Development Manager and Addison Lewis ,
C ommunity Development
Item Activity:
Subject:S tatus R eport on Implementing Housing S trategy
Task F orc e R ec ommendations
Information
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action required.
I N TR O D U C TI O N:
T he H ousing S trategy Task Force was commissioned by the C ity C ouncil in 2019 to provide guidance on housing
priorities for the C ity. T he result was the Housing Strategy Task F orce Report, which was adopted by the H R A
on D ecember 10, 2020, followed by approval of the Implementation P lan on August 12, 2021. B oth the report
and the plan are attached. T he purpose of this agenda item is to provide an update on the progress of the
implementation plan.
AT TAC HME N T S:
Description
Staff Report
Pres entation
Hous ing Strategy Tas k Force Report
Task Force Implementation Report
November 17, 2022
Chair and Commissioners of the Edina Housing and Redevelopment Authority
Stephanie Hawkinson, Affordable Housing Development Manager
Addison Lewis, Community Development Coordinator
Status Report on Implementing Housing Strategy Task Force Recommendations
Information / Background:
The Housing Strategy Task Force was commissioned by the City Council in 2019 to provide guidance on
housing priorities for the City. The result was the Housing Strategy Task Force Report, which was adopted
by the HRA on December 10, 2020, followed by approval of the Implementation Plan on August 12, 2021.
Both the report and the plan are attached. The purpose of this agenda item is to provide an update on the
progress of the implementation.
Each strategy in the Implementation Plan is intended to further one of the four priority goals identified in the
report.
1. Promote Lifecycle Housing
2. Enable Diverse Housing Stock
3. Reduce Housing Development Costs
4. Encourage Sustainable Design and Technology
The report specifically identified the following new housing goals:
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
Since 2020, the City has made headway in reaching the stated goals. With the approval of the senior Co-op
at 5146 Eden, the City has accomplished over 50% of the proposed goals in developing affordable housing
STAFF REPORT Page 2
for active seniors and developing housing for Senior Independent living regardless of income. The City has
achieved 143% of the stated goal for Market Rate General Occupancy. Where the City is falling short is
Assisted Living for Seniors.
Please note that some of the developments fall under more than one category.
Task Force Score Card
Goals Approved % of Goal Completed % of Goal
Affordable General Occupancy 794 214 27% 135 17%
Affordable Active Seniors 198 127 64% 0%
Market Rate General Occupancy 900 1291 143% 227 25%
Senior Independent Living 360 204 57% 0%
Owned Multi-Family Units 250 86 34% 0%
Senior Assisted Living Units 200 0 0% 0%
The goal numbers contained within the Task Force report are extrapolated from the Met Council and from
the Maxfield Report. The Met Council provides two values – what is needed and what is the goal based on
available financial resources. The “need value” is greater that the “goal value”. Likewise, the Maxfield Study
includes “demand” numbers that are greater than the number of housing units they deem is feasible.
Therefore, the fact that the number of Market Rate units exceeds the goal is not alarming, as the goal is
significantly lower than the than 2000+ units needed to meet the demand.
Development Categories
Developments
Affordable
General
Occupancy
Affordable
Active
Seniors
Market
Rate
General
Occupancy
Senior
Independent
Living
Owned
Multi-
Family
Units
Senior
Assisted
Living
Units
4500 France/The Lorient 3 42
The Bowers 185
Amundson Flats 62
The Sound on 76th 70
Cornelia View 118 118
Fred 1 408
Perkins Site 20 176
7001 France Ave S 270
Pentagon Apartments 20 180
4425 Valley View 30
5146 Eden Co-ops 9 86 86
TOTAL 175 127 1291 204 86 0
Although single-family is not specifically stated as one of the priority types, the City’s single-family initiatives
still contribute towards the total goal of 992 affordable units, add affordable housing opportunities in
STAFF REPORT Page 3
neighborhoods where it may not otherwise be possible, and, in the case of owner-occupied units, allow for
the building of equity and generational wealth for low-income households. Single-family units also may be
more accommodating to larger families/households. Several of the implementation strategies in the
Implementation Plan are targeted towards single-family housing.
To achieve these priority goals, the Implementation Plan included four categories for when, and if, the
proposed strategies would be accomplished:
1. Strategy items in process;
2. Strategies recommended to include in 2022 Work Plans;
3. Strategies recommended to include in 2023 Work Plans; and
4. Strategies where the City has limited authority to implement.
For the purpose of providing a status update, this report will focus on the first two categories.
Strategy Items in Process
Strategies Status
Strategy 1A.3: Attract new residents
and retain existing residents by
preserving and expanding housing
options for moderate- and low-income
households
Ongoing – The City undertakes numerous initiatives aligned
with this strategy. Some examples include:
Come Home 2 Edina second mortgage program
Housing Preservation Program / Homes within Reach
partnership
Deferred Home Improvement Loan program with Center
for Energy and Environment (CEE)
Inclusionary zoning requirement for PUDs
4d program
Tenant Protection Ordinance
Housing Improvement Area Policy
Provide gap financing
Strategy 1D.2: Encourage the
preservation, maintenance, and
rehabilitation of existing subsidized and
naturally occurring affordable rental
and ownership housing (NOAH)
Ongoing – The City has and continues to be a funding partner
in numerous housing projects. When the City is a funding
partner in affordable housing projects, there is a requirement
that units remain affordable for a specified term. The City has
limited control over NOAH properties, which could redevelop
or be improved at any time such that they are no longer
affordable. As an incentive to keep properties affordable, the
City offers a Property Tax Reduction and Sustainable Rehab
Grant Program (4d program). This program offers a lower tax
classification and funds for energy efficiency improvements in
exchange for maintaining affordable rents at 60% AMI for 5
STAFF REPORT Page 4
years. The City has one property participating in the program.
Staff is looking at ways to better promote the program and make
it more appealing.
The Deferred Home Improvement Loan program is another
initiative that aligns with this strategy. This program provides
deferred loans to income qualifying applicants to address health,
safety, and energy efficiency improvements. Homes must be
valued at $425,000 or less to qualify. This program has been
utilized for 37 properties.
The Housing Preservation Program seeks to preserve existing
single-family homes that are moderately affordable (assessed
value at $425,000 or less). Residents with qualifying properties
have the option to sell their home to the City if they wish for it
to not be a teardown. Homes are placed into a land trust
through a partnership with Homes within Reach and sold to
income qualifying households. To date, nine houses have been
acquired with 6 sold to end-buyers.
The Housing Improvement Area Policy provides financing for
improvements to common areas of owner-occupied
condominiums and townhomes. One application has been
submitted and is under review.
Strategy 2D.4: Support program(s) for
assisting income eligible property
owners with rehabilitating their homes
to extend the useful life.
Ongoing – As discussed above, the 4d program, Deferred
Home Improvement Loan Program, and Housing Improvement
Area Policy all seek to provide funding to
maintain/preserve/rehabilitate affordable housing.
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.
Ongoing – Flexibility from strict adherence to the zoning
requirements is provided through the PUD process when other
development benefits are provided.
The City has also made changes to the zoning ordinance to
reduce the need for some variances, such as reducing parking
minimums.
The Planning Commission is currently studying the development
review process to see if other improvements could be made. A
recommendation to the City Council is expected in early 2023.
Strategy 2A.3: Allow for creative
solutions and some flexibility in the
Done – The City adopted an amendment to the parking
ordinance on Aug. 16, 2022 which includes incentives for
STAFF REPORT Page 5
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.
developers to reduce parking, including car-share parking, bike
parking, and in locations near transit stops. The ordinance
reduces the amount of parking required to better align with
recent project approvals.
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.
Ongoing – Staff does identify potential sites for redevelopment
and work with property owners interested in redevelopment by
sharing small area plans, studies, comprehensive plan, etc.
Strategy 3A.2: Implement active
outreach and recruit developers with a
successful track record in providing the
housing desired.
Ongoing – This is done when the City has control of the land
and can choose the developer through the RFP process. The
City cannot dictate the developer for privately owned land.
Strategy 3A.3: Empower the City’s
Community Development Department
to guide developers through the
project approval process.
Ongoing – This is the approach taken by staff when working
with developers. Developers are encouraged to meet with staff
early on to discuss the development review process,
requirements, and challenges.
Strategy 3A.4: Provide better guidelines
for development requirements, based
on location and economic objectives.
Done (mostly) – Detailed guidance is provided for key
locations through the small area plans. Small area plans have
been completed for 44th & France, 50th & France, 70th & Cahill,
The Greater Southdale District, Wooddale & Valley View, and
Grandview. The small area plan for the Cahill District is
currently in progress and is planned to be completed in early
2023.
Strategy 3B.1: Develop a parking policy
that reflects the latest thinking for
current and future parking needs,
parking construction costs,
Done - The City adopted a new parking ordinance on Aug. 16,
2022 to better align requirements with modern trends. One
change was a reduction in the number of stalls required for
apartments from 2 spaces per unit to 1.25 minimum and 1.75
STAFF REPORT Page 6
sustainability and evolving economic
and marketability needs for successful
projects.
maximum spaces per unit, consistent with the most recent
requests for new apartments in Edina. In mixed use districts,
residential parking was reduced from 1.75 spaces per unit to 1
space per unit with a maximum of 1.75 spaces per unit. The
City can still provide flexibility through the PUD process, which
is typically informed by a parking study.
Strategy 3B.4: Utilize land trusts and
land write-downs to secure land for
future development projects.
Ongoing – The City has partnered with West Hennepin
Affordable Housing Land Trust on 24 single family home projects
since 2007.
Edina Housing Foundation borrowed funding from the HRA to
acquire land and then entered a ground lease to secure 99-year
affordability for independent senior housing at 4040 70th St.
West (Cornelia View).
The City continues to explore opportunities to acquire property
for affordable housing as opportunities arise.
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.
Ongoing – The Affordable Housing Development Manager
reviews and provides a comment letter for all development
proposals that include housing.
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.
Ongoing – As opportunities arise, City staff and the HRA
evaluate opportunities to acquire property for affordable
housing development. Recent multi-family examples include
Cornelia View (118 affordable senior independent living units at
4040 76th St W), Amundson Flats (62 affordable units at 7075
Amundson Ave), and the Sound on 76th (4100 W. 76th St.).
The City has also proactively tried to preserve affordable single
family homes that may otherwise become teardowns. The City
mailed postcards to all single family home owners who’s
assessed value was less than $425,000 to notify them of the
option to sell their home to the city if they wish for it to be
preserved and offered as an affordable home. The City partners
with West Hennepin Affordable Housing Land Trust to ensure
STAFF REPORT Page 7
homes remain affordable for 99 years. To date, 6 homes have
been preserved and offered to low-income families as a result of
the new program and corresponding postcard.
For category 2, Staff in various departments and working for various Commissions incorporated their
assigned strategies into their 2022 Work Plans. Most of the strategies are actively in process or were
incorporated into other Work Plan items. Some of the Strategies were not Work Plan items per se, but
rather a lens through which Staff completes all our Work Plan items.
2022 Strategies
Strategies Status
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.
Ongoing – Staff and the Planning Commission review every
housing proposal in the context of its compliance with the
Comprehensive Plan. Staff can evaluate proposed development
in relation to stated priorities but cannot dictate what private
developers bring forward.
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.
In-process – A committee of the Planning Commission has
been studying ADUs since May. The committee plans to present
information to the full Commission later this fall and expects to
have a recommendation to the City Council before the end of
the year or early 2023.
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
Ongoing – The Comprehensive Plan and zoning ordinance
identify areas within the City where missing middle type housing
is allowed. The City has supported missing middle housing
development by granting flexibility through the PUD process or
variances, when variance criteria is met, to support projects that
satisfy city goals. The recently approved townhome project at
4404 Valley View Rd is one example of this.
Strategy 1C.1 Support a range of
housing options for people with special
needs (Developmentally, Physically, or
Mentally)
Ongoing – This is somewhat dependent on the developer, as
the City has limited site control. Staff was working with the
Developer for this type of housing at the St. Peter’s site but the
development fell through.
STAFF REPORT Page 8
Strategy 2B.3: Support the
development and preservation of
affordable housing throughout Edina
where there is access to transit.
Ongoing – Edina has supported higher density near key transit
nodes such as 44th & France, 50th & France, and the Greater
Southdale District and encouraged developers to include
affordable units in developments. The Sound on 76th, Cornelia
View, Maison Green (Perkins site), The Lorient, Pentagon
Apartments, and 5146 Eden Co-op are all recent examples that
included new affordable units and are located near transit.
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).
Ongoing - The City has considered many requests for lot splits.
The Zoning Ordinance requires a minimum lot width of 75 feet
or the median lot width within the neighborhood, whichever is
greater. In areas where lot widths are less than 75 feet (such as
Morningside), lot splits have generally been approved if they are
still consistent with the median lot width for the neighborhood.
A variance from lot width is still required in this case.
On Jan. 19, 2022, the City amended the zoning ordinance to
eliminate the requirement for basements on single family homes,
reducing the costs for construction.
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.
In-process – A committee of the Planning Commission has
been studying ADUs since May. The committee plans to present
information to the full Commission later this fall and expects to
have a recommendation to the City Council before the end of
the year or early 2023.
No progress has been made on evaluating additional areas for
R2 zoning specifically; however, it is a proposed 2023 work plan
item for the Planning Commission to consider the next “areas of
potential change” for the next comprehensive plan update.
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.)
Ongoing – While the majority of development within Edina is
privately financed, the City utilizes many tools to fill financing
gaps when specific goals are met. Selling land below market
value, TIF, reduced development fees and gap funding from the
Affordable Housing Trust Fund are the tools most commonly
used to reduce development costs.
The City waives building permit fees for new single family homes
if valued at $350,000 or less; however, the City has not received
any permit applications that meet this threshold.
STAFF REPORT Page 9
Strategy 4.1: Encourage alternative
energy sources including solar, wind,
waste material, and geothermal.
Ongoing – The Climate Action Plan was adopted that
incorporates these goals.
The City’s Sustainable Buildings Policy took effect April 1, 2022,
which requires developments to meet a green building standard
when a PUD is used or financial assistance is provided from the
City.
As the City owns very little undeveloped land, it is challenging for us to dictate the type of development in
particular locations. Rather, we are somewhat dependent upon market forces and the introduction of
development proposals by developers. The Planning Commission and Council has the authority to assess
the proposals based on the Comprehensive Plan and other policies.
Funding Allocation
Using the Task Force defined goals to determine the allocation of public resources is not a good fit. The
Task Force Report pertains to all housing in Edina, regardless of affordability levels. However, public
support of housing tends to apply to affordability. In addition, the Report stresses preservation of single-
family housing, so there is no stated goal to expand the number. Nonetheless creating affordable single
family ownership opportunities is an explicit goal within the Comprehensive Plan.
Therefore, when reviewing requests for gap financing, Staff evaluates each proposal to determine its
alignment with the Comprehensive Plan and the Task Force Implementation Plan together with other City
policies and plans. For residential developments approved or delivered since the passage of the 2040
Comprehensive plan in 2020, and that received gap financing for the delivery of housing units, $19,250,618
was awarded from Southdale II TIF pooled funds, the Affordable Housing Trust Fund and to a far lesser
extend in tax increment. Most funding was allocated towards the creation of multifamily rental units, with
the least amount for NOAH preservation.
Funds Committed Units $/Unit/Term % of Total
Multi-Family Rental $ 11,137,901 260 $1,642 58%
NOAH Preservation* $ 560,000 29 $1,353 3%
Single Family Rental $ 2,000,000 4 $16,667 10%
Single Family Rehab $ 1,500,000 40 8%
Single Family Ownership $ 4,052,717 15 $2,433 21%
$ 19,250,618
STAFF REPORT Page 10
Breakdown of Affordable Residential Financing by Source:
It is important to note that although single family ownership is an expensive endeavor when reviewing by
amount of gap financing needed per unit delivered, if the term of affordability is included, the gap per unit is
still greater than what is needed to create an affordable rental unit, but the difference shrinks considerably.
For example, the gap per Land Trust home is an average of $270,000 compared to $34,286 per unit at the
Sound on 76th, When reviewed over the term of affordability, the gap becomes $2,727/unit/year for a Land
Trust home and $857/unit/year at the Sound, which is still greater but the magnitude is reduced.
Staff will continue evaluating development proposals based on guidance provided by the Comprehensive Plan
the Housing Task Force Implementation Plan, and the New Multifamily Affordable Housing Policy prior to
seeking approval from the Housing and Redevelopment Authority.
*7008 Sandell and 4d Participation
**100% Affordable developments at 4100 W. 76th St. and 4040 W. 70th Street
Southdale II Pooled AHTF TIF New Increment
Multi-Family Rental $8,086,901 $750,000 $2,301,000**
NOAH Preservation $350,000 $210,000
Single Family Rental $2,000,000
Single Family Rehab $1,500,000
Single Family Ownership $4,052,717
$10,436,901 $6,512,717 $2,301,000
Status Report on Implementing Housing
Strategy Task Force Recommendations
October 15, 2022
Background
•Housing Strategy Task Force formed in June 2019
7 members meeting over 18 months
Intended to provide guidance on housing priorities
•Maxfield Housing Market Study completed April 2020
•Housing Strategy Task Force Report adopted by HRA Dec. 10,
2020
•Implementation Plan adopted by HRA Aug. 12, 2021
EdinaMN.gov 2
Priority Goals
1.Promote Lifecycle Housing
2.Enable Diverse Housing Stock
3.Reduce Housing Development Costs
4.Encourage Sustainable Design and
Technology
EdinaMN.gov 3
Goals for New Housing
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
EdinaMN.gov 4
Status Towards Goals
EdinaMN.gov 5
Goals Approved % of Goal Completed % of Goal
Affordable General Occupancy 794 214 27%135 17%
Affordable Active Seniors 198 127 64%0%
Market Rate General
Occupancy 900 1291 143%227 25%
Senior Independent Living 360 204 57%0%
Owned Multi-Family Units 250 86 34%0%
Senior Assisted Living Units 200 0%0%
Developments Assisting Goals
EdinaMN.gov 6
Developments
Affordable General
Occupancy
Affordable
Active Seniors
Market Rate
General
Occupancy
Senior
Independent
Living
Owned Multi-
Family Units
Senior Assisted
Living Units
4500 France/The Lorient 3 42
The Bowers 185
Amundson Flats 62
The Sound on 76th 70
Cornelia View Apartments 118 118
Fred 1 408
Maison Green(Perkins Site)20 176
7001 France Avenue South 270
Pentagon Apartments 20 180
4425 Valley View 30
5146 Eden Co-ops 9 86 86
TOTAL 175 127 1291 204 86 0
Implementation Strategies
1.Strategy items in process
2.Strategies recommended to include in 2022 Work Plans
3.Strategies recommended to include in 2023 Work Plans
4.Strategies where the City has limited authority to implement
EdinaMN.gov 7
Implementation Strategies
EdinaMN.gov 8
Strategies Status
Strategy 1A.3: Attract new
residents and retain existing
residents by preserving and
expanding housing options for
moderate-and low-income
households
Ongoing –The City undertakes numerous
initiatives aligned with this strategy. Some
examples include:
•Come Home 2 Edina second mortgage
program
•Housing Preservation Program /
Homes within Reach partnership
•Deferred Home Improvement Loan
program with Center for Energy and
Environment (CEE)
•Inclusionary zoning requirement for
PUDs
•4d program
•Tenant Protection Ordinance
•Housing Improvement Area Policy
•Provide gap financing
Implementation Strategies
EdinaMN.gov 9
Strategies Status
Strategy 3A.4: Provide better
guidelines for development
requirements, based on location
and economic objectives.
Done (mostly) –Detailed guidance is
provided for key locations through the small
area plans. Small area plans have been
completed for 44th & France, 50th & France,
70th & Cahill, The Greater Southdale District,
Wooddale & Valley View, and Grandview.
The small area plan for the Cahill District is
currently in progress and is planned to be
completed in early 2023.
Implementation Strategies
EdinaMN.gov 10
Strategies Status
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.
Done -The City adopted an amendment to
the parking ordinance on August 16th, 2022,
which includes incentives for developers to
reduce parking, including car-share parking,
bike parking, and in locations near transit
stops. The ordinance reduces the amount of
parking required to better align with recent
project approvals.
Implementation Strategies
EdinaMN.gov 11
Strategies Status
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.
In-process –A committee of the Planning
Commission has been studying ADUs since
May. The committee plans to present
information to the full Commission later this
fall and expects to have a recommendation
to the City Council before the end of the
year or early 2023.
No progress has been made on evaluating
additional areas for R2 zoning specifically;
however, it is a proposed 2023 work plan
item for the Planning Commission to
consider the next “areas of potential change”
for the next comprehensive plan update.
Implementation Strategies
EdinaMN.gov 12
Strategies Status
Strategy 4.1: Encourage
alternative energy sources
including solar, wind, waste
material, and geothermal.
Ongoing –The Climate Action Plan was
adopted that incorporates these goals.
The City’s Sustainable Buildings Policy took
effect April 1, 2022, which requires
developments to meet a green building
standard when a PUD is used or financial
assistance is provided from the City.
Funding Allocation for Affordability
Southdale II
Pooled AHTF
TIF New
Increment
Multi-Family Rental $8,086,901 $750,000 $2,301,000
NOAH Preservation $350,000 $210,000
Single Family Rental $2,000,000
Single Family Rehab $1,500,000
Single Family Ownership $4,052,717
$10,436,901 $6,512,717 $2,301,000
EdinaMN.gov 13
Thank you!
www.EdinaMN.gov 14
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
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Cecchini, Alex. “No, Large Apartment Buildings Won’t Devalue
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Charles, J. Brian. “Will Up-Zoning Make Housing More Affordable?”
governing.com/templates/gov_print_article?id511415102, July 2019.
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Appendix V
Report from the City of Edina Housing Strategy Task Force | 71
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“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://
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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.
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https://www.nar.realtor/home_from_work.nsf/files/PG%20
Module%201.pdf/$FILE/PG%20Module%201.pdf
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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.
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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.
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Estate.” nytimes.com/2019/09/20/realestate/.
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Summary.” San Francisco Planning, July 2018.
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Win, While Renters Mostly Lose.” brookings.edu/research/, 10 July
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Schuetz, Jenny. “Who’s to Blame for High Housing Costs? It’s
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January 2020.
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Thomas, Julie Manning, and Marsha Ritzdorf. Urban Planning and
the African American Community: In The Shadows. December 1996
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Appendix V
Report from the City of Edina Housing Strategy Task Force | 74
“Why Are the Twin Cities So Segregated?” Institute on Metropolitan
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Wiener, Scott, and Daniel Kammen. “Why Housing Policy Is Climate
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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
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 Diverse 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,
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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.
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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
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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
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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.