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HomeMy WebLinkAbout2022-11-17 HRA Regular Meeting MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 17, 2022 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the meeting to order at 7:32 a.m. then explained the processes created for public comment. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Jackson, Pierce, and Chair Hovland. Absent: Commissioner Staunton. 111. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Anderson, Jackson, Pierce, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED - AS PRESENTED Member Jackson made a motion, seconded by Member Pierce, approving the consent agenda as presented: V.A. Approve Draft Minutes of the Regular Meeting of October 13, 2022 V.B. 4040 W. 70th Acquisition Loan Forgiveness V.C. Certificate of Completion — Brainerd Enterprises LLC dba Mann Theaters Rollcall: Ayes: Anderson, Jackson, Pierce, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS VII.A. LOAN AGREEMENT WITH EDINA CHAMBER OF COMMERCE - APPROVED Economic Development Manager Neuendorf said this item pertained to funding to support renovation and re -occupancy of a portion of vacant commercial property. This type of funding was possible using the SPARC program. He shared the objectives and SPARC outcomes that included support of entrepreneurial economy and small businesses, occupancy of a vacant office building, job creation, and established revolving loan fund for future HRA projects. He shared a brief description of the Lab with an $800,000 construction budget and anticipated loan amount of $650,000 to $725,000 then noted they were unable to secure traditional debt financing. Mr. Neuendorf summarized the loan terms of seven-year minimum with construction to be completed by June 2023 and repayment to begin June 2023 then reviewed a summary of loan forgiveness in detail. He said when completed, the space would host a small business development facility that included the Edina Innovation Lab and would be operated by the Edina Chamber of Commerce. Lori Syverson, Edina Chamber of Commerce, thanked the Council for the opportunity to share more on the proposed loan agreement. She shared their work with Edina Public Schools to formulate an entrepreneurial program for students and their intent to work with the HRA planning Page 1 Minutes/HRA/November 17, 2022 The Lab based on their goals and those of the City. She said they intended to offer The Lab to Edina businesses but would be open to HRA's input and said they had $105,000 pledged to date. Ms. Syverson spoke about the impacts to businesses from COVID-19 and how things have changed which resulted in ways to innovate and required strategic action from business leaders because survival of businesses was at stake. She reviewed their revenue and expenses and said the pilot program has been successful and was needed then shared what other cities were doing in the area to build for the future. Paul Moody, Edina Chamber of Commerce, presented more details on the proposal and the importance of giving back to the community and being a partner with the community through an organization that was believed in. He said Edina had a strong and healthy business community and that The Lab would be a critical economic development tool. Annette Wildenaur, Edina Chamber of Commerce, said she loved to watch businesses innovate and grow and would work to create a roadmap to grow businesses to the next level. She said they had people on a waiting list and would be governed under the Chamber and would include ownership and leadership in any sector. She outlined the proposed curriculum that would be experiential learning and include finance, marketing, human resources, strategic thinking, and more and said The Lab would fill a need, was sustainable, and provided an ability to pivot. The Council asked questions and provided feedback. Motion by Commissioner Jackson, seconded by Commissioner Pierce, to approve loan agreement with Edina Chamber of Commerce to establish the Edina Innovation Lab at 7201 Metro Avenue as presented. Roll call: Ayes: Anderson, Jackson, Pierce, and Hovland Motion carried. VII.B. UPDATED TAX INCREMENT FINANCING POLICY - APPROVED Mr. Neuendorf stated his item pertained to the future use of Tax Increment Financing in Edina and noted the policy was last updated in 2011. He reviewed the objectives of the updated policy which would clarify the intent and purpose for when TIF could be used, clarified the review process, set expectations, identified parameters, clarified minimum expectations for developers, and established clear financial guidelines. He said the policy defined the public benefit for transformational change which required a huge investment and included reporting for transparency. Mr. Neuendorf said the parameters for a new district would limit the size and scope of a district and include community engagement and early de -certification when possible. He outlined minimum expectations such as public parking but not exclusively private parking and would include clear financial guidelines. He said staff recommended the policy be updated to reflect current practice of using TIF only when necessary to deliver public benefits and if approved would be forwarded to the City Council for formal adoption. The Council asked questions and provided feedback. Motion by Commissioner Jackson, seconded by Commissioner Pierce, to approve the updated policy to be followed when considering the use of Tax Increment Financing as presented. Roll call: Ayes: Anderson, Jackson, Pierce, and Hovland Motion carried. Vlll. EXECUTIVE DIRECTOR'S COMMENTS — Received Page 2 Minutes/HRA/November 17, 2022 VIII.A. POTENTIAL PROGRAMS FOR SPARC FUND VIII.B. HRA PROJECT STATUS UPDATE VIII.C. PENTAGON VILLAGE LOT 4 UPDATE VIII.D. STATUS REPORT ON IMPLEMENTING HOUSING STRATEGY TASK FORCE RECOMMENDATIONS IX. HRA COMMISSIONER COMMENTS — Received IX.A. OPEN TO BUSINESS MID -YEAR REPORT X. ADJOURNMENT Motion made by Commissioner Pierce, seconded by Commissioner Jackson, to adjourn the meeting at 9:07 a.m. Roll call: Ayes: Anderson, Jackson, Pierce, and Hovland Motion carried. Respectfully submitted, Scott iqe, Executive Dir or Page 3