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2023-03-23 HRA Regular Meeting Packet
Ag enda E dina H ousing and R edevelopm ent Author ity City of E dina, Minnesota City Hall Council Chambers Thur sday, March 23, 2023 7:30 AM Watch the m eeting on cable TV or at EdinaMN.gov/LiveMeeting s or Facebook.com /EdinaMN. To Participate in Comm unity Comm ent Call 786-496-5601 E nter Conference PIN 7847036# Press *1 on your telephone keypad when you would like to get in the queue to speak. An operator will introduce you when it is your turn. 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. A.E xecu tive Director's Resp onse to Com m u n ity Com m ents 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 of the Regu la r Meetin g Feb ru ary 16, 2023 B.Am en d Con tra ct for Private Developm en t with Jester Resta u rants C.Req u est for Purch ase: Cha n ge Order: Professiona l Services for E d en Aven u e a n d Gra n ge Roa d Rou n d abou ts D.Req u est for Purch ase: E NG22016 Eden Avenue a n d Gra n ge Roa d Rou n d abou ts E.Req u est for Purch ase: Material Testing for Eden Avenue a n d Gra n ge Roa d Rou n d abou ts 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.Modi;cation s to Hom e Reha b Loan Program B.Resolution 2023-04: E stablish ing the 72nd and France 2 Tax Increm en t Fin ancing District VIII.Executive Director's Com m ents 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 pli;ca 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: Marc h 23, 2023 Agenda Item #: V.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: O ther F rom:Liz O ls on, P lanning Adminis trative S upport S pec ialis t Item Activity: Subject:Exec utive Director's R espons e to C ommunity C omments 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: None. I N TR O D U C TI O N: Executive Director N eal will respond to questions asked at the previous H R A meeting. Date: Marc h 23, 2023 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 of the R egular Meeting F ebruary 16, 2023 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: Approve the draft minutes of the regular meeting February 16, 2023 I N TR O D U C TI O N: AT TAC HME N T S: Description 2023-02-16 HRA Regular Meeting Minutes Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 16, 2023 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, Pierce, and Risser. Absent: None. III. 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: Agnew, Jackson, Pierce, Risser, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. V.A. EXECUTIVE DIRECTOR’S RESPONSE TO COMMUNITY COMMENTS There were no comments received. ITEMS REMOVED FROM THE CONSENT AGENDA - ADOPTED Member Jackson made a motion, seconded by Member Pierce, approving the Items V.A., V.B., and V.C. as presented: V.A. Draft Minutes of the Special Meeting December 6, 2022 V.B. Draft Minutes of the Regular Meeting December 8, 2022 V.C. Draft Minutes of the Special Meeting December 20, 2022 Rollcall: Ayes: Jackson, Pierce, and Hovland Abstain: Agnew, Risser Motion carried. VI. CONSENT AGENDA ADOPTED - AS AMENDED Member Risser made a motion, seconded by Member Pierce, approving the consent agenda as amended: V.D. Draft Minutes of the Regular Meeting February 2, 2023 V.E. Edina Housing Foundation Appointments Rollcall: Ayes: Agnew, Jackson, Pierce, Risser, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS VII.A. 7200-7250 FRANCE – RECOMMENDED TERMS FOR TAX INCREMENT FINANCING - APPROVED Minutes/HRA/February 16, 2023 Page 2 Economic Development Manager Neuendorf said this item pertained to the use of Tax Increment Financing to promote comprehensive redevelopment at the vacant commercial site located at 7200 and 7250 France Avenue. The developer had secured entitlements for the site and approvals for Phase 1 office. The developer anticipated pursuing Phase 2 approvals later in 2023. After reviewing the developer's request for Tax Increment Financing, staff had reached the conclusion that without a limited degree of public financing, the redevelopment plan would not be able to secure private financing. Without the use of TIF, the project returns would not meet industry norms and the project did not appear to be financially viable. With the assistance of financial and legal advisors at Ehlers Associates and Dorsey and Whitney, staff had negotiated terms by which TIF could be used to promote job-creating commercial development that was constructed in a manner consistent with the Greater Southdale Plan and associated design experience guidelines. The proposed two-phase project would yield many benefits to the general public and substantially complied with Edina's TIF policy. He provided further background regarding the site, valuation, and recommendation, including past projects such as The Prestige office building and the Oscar Roberts Company where were demolished in 2022 and previous attempts to redevelop the sites. He outlined the proposed development team of Orion Development and highlighted public benefits such as improved roadway and sidewalk access, modern facilities, and bike/pedestrian trail and compliance with the City’s sustainability and other goals, including property valuation. He outlined terms in detail then said staff recommended the Term Sheet be approved and was seeking authorization to prepare a complete TIF Plan and complete TIF Redevelopment Agreement for future consideration. The Board asked questions and provided feedback. Motion by Commissioner Jackson, seconded by Commissioner Pierce, to authorize staff to prepare a full TIF Redevelopment Agreement and 72nd and France 2 Redevelopment TIF Plan based on the Term Sheet for future consideration. Roll call: Ayes: Jackson, Pierce, and Hovland Nays: Agnew, Risser Motion carried. VII.B. RESOLUTION 2023-03; REQUESTING THAT CITY COUNCIL CALL FOR A PUBLIC HEARING REGARDING THE 72ND AND FRANCE 2 TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) - ADOPTED Mr. Neuendorf said this item pertained to the potential use of Tax Increment Financing to support comprehensive redevelopment of vacant commercial property at 7200-7250 France Avenue. Minnesota statutes establish a series of steps when a municipality considers the use of TIF. The first key step was the preparation of a TIF Plan and convening of a Public Hearing. In addition to the formal public hearing, Edina traditionally solicits addition input via the Better Together Edina website and direct outreach to the School District and County. This resolution documents that the HRA recommends that the City Council schedule a future Public Hearing so that full consideration could be given. Staff recommended approval of this resolution. The Board asked questions and provided feedback. Motion by Commissioner Jackson introduced and moved adoption of Resolution 2023- 03; requesting the City Council Call for a Public Hearing Regarding the 72 nd and France 2 Tax Increment Financing District (A Redevelopment District). Seconded by Commissioner Agnew. Roll call: Ayes: Agnew, Jackson, Pierce, Risser, and Hovland Motion carried. Minutes/HRA/February 16, 2023 Page 3 VII.C. SINGLE FAMILY PRESERVATION PROGRAM WITH TWIN CITIES HABITAT FOR HUMANITY PARTNERSHIP - APPROVED Affordable Housing Development Manager Hawkinson said staff was seeking approval for a $3.0 million revolving line of credit (“LOC”) of which $1.8 Million would be forgiven and $1.2 million due back to the City, and authorization to draft a partnership agreement with Twin Cities Habitat for Humanity (“TCHFH”) to expand the Housing Preservation Program. Similar to the HRA’s partnership with Homes Within Reach (“HWR”), TCHFH would access the LOC to buy a house, renovate it, and sell to an income eligible homebuyer. The land would be conveyed to HWR to place into the land trust and a 99-year ground lease would be executed with the homeowner to assure long-term affordability. Once the land was secured into the land trust, a portion of the LOC that attributed to the land was forgiven. She reviewed context including housing attainability, current housing preservation program, increased capacity to address need, and said sale proceeds from the sale of the house would be returned to the HRA. Ms. Hawkinson outlined policy considerations, tradeoffs, and public benefits in detail, stating the proposal met the Comprehensive Plan and the Housing Strategy Taskforce goals. Noah Keller, Twin Cities Habitat for Humanity, commented on extreme programming changes as a result of COVID-19 and shared their excitement for this upcoming partnership. The Board asked questions and provided feedback. Motion by Commissioner Agnew, seconded by Commissioner Pierce, to approve a $3.0 million line of credit to Twin Cities Habitat for Humanity and authorize attorney to prepare legal documents for execution. Roll call: Ayes: Agnew, Jackson, Pierce, Risser, and Hovland Motion carried. VIII. EXECUTIVE DIRECTOR’S COMMENTS – Received IX. HRA COMMISSIONER COMMENTS – Received X. ADJOURNMENT Motion made by Commissioner Pierce, seconded by Commissioner Risser, to adjourn the meeting at 8:38 a.m. Roll call: Ayes: Agnew, Jackson, Pierce, Risser, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: Marc h 23, 2023 Agenda Item #: VI.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:Amend C ontract for P rivate Development with Jester R es taurants 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 amended C ontract for P rivate D evelopment with J ester R estaurants. I N TR O D U C TI O N: T his item pertains to the sale of real estate at 5146 E den Avenue for redevelopment purposes. T he original contract is proposed to be amended to provide additional time to secure financing and full zoning entitlements and to better coordinate with the sequencing of the Senior Cooperative Lot. T he City Attorney has prepared this amendment. T he developer (Jester Concepts) is agreeable to these changes. S taff recommends the approval of this amendment. AT TAC HME N T S: Description Amended contract with Jes ter Concepts 1 25817590v4 FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT THIS FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT ("Amendment") is entered into as of February 27, 2023, by and between Edina Housing and Redevelopment Authority, a public body corporate and politic under the laws of the State of Minnesota (the "HRA"), and Jester Concepts LLC, a Minnesota limited liability company ("Developer"). R E C I T A L S A. Developer and the HRA are parties to that certain Contract for Private Development dated effective June 2, 2022 (the "Purchase Agreement") with respect to real property located in the City of Edina, Minnesota, as more particularly described in the Purchase Agreement. B. Developer and the HRA now desire to amend the Purchase Agreement in the manner set forth below. A G R E E M E N T NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the HRA and Developer agree as follows: 1. Title of Project Changed. The parties agree that the title of the Contract shall be changed to “Contract for Private Development – Restaurant / Hospitality Facility at 5146 Eden Avenue”. Developer agrees to not use the names “Grandview Yard” or “Grandview Yards” in its naming of the Project or in future references to the Project. 2. Extension of the Due Diligence Period. Developer and the HRA hereby acknowledge and agree that the Due Diligence Period as identified in Sections 3.4(b) and 3.4(i) of the purchase Agreement is hereby extended to August 31, 2023. 3. Extension to Closing Date. Developer and the HRA acknowledge and agree that the Closing Date as identified in Section 3.6 of the Purchase Agreement is hereby amended to occur on or before one hundred eighty (180) days after Closing on the sale of the Senior Cooperative Lot, as defined in the Purchase Agreement but no later than December 31, 2024. 4. Extension to Final Zoning Approval. Developer and HRA acknowledge and agree that the final zoning and site plan approvals, including the Site Plan Performance Agreement (SPPA) shall be secured no later than March 31, 2024. The developer agrees to prepare and submit documents as typically required by the City of Edina to secure such approvals. 5. Additional Extension. If necessary to complete the transaction and overall redevelopment of the Property and adjacent Senior Housing Property, the Executive 2 25817590v4 Director of the HRA is authorized to approve additional extensions up to an additional cumulative length of 180 days. 6. Site Improvement Agreement and Cost Share Agreements. Section 3.4(c)(1) of the Purchase Agreement is hereby amended to add new subsections (f), (g) and (h) to read as follows: (f) Developer and the HRA acknowledge that Section 3.4(c)(1) is hereby amended to require that during the Due Diligence Period, the parties will work to finalize a site improvement performance agreement by and between the City of Edina, Minnesota, a Minnesota municipal corporation (the “City”) and Developer, if and as required by the City (the “SIPA”), which agreement shall address those matters set forth in Section 3.4(c)(1)(a)-(d). The Site Improvement Agreement shall also address, among other matters: (i) construction, maintenance and use of the shared access driveway by and between Developer and Senior Cooperative Developer; (g) A cost share agreement or shared easement agreement between the Developer and the Senior Cooperative Developer addressing the following: (i) construction, maintenance and use of the shared access driveway by and between Developer and Senior Cooperative Developer; (ii) repair and maintenance responsibilities, significant improvement responsibilities, and cost-sharing of each, (iii) defaults and rights and remedies upon default; and (h) A cost share agreement or shared easement agreement between the Developer, Senior Cooperative Developer and the HRA for a shared stormwater system benefitting the Property, Senior Cooperative Lot and Park Lot addressing (i) construction costs of system; (ii) repair and maintenance responsibilities, significant improvement responsibilities, and cost-sharing of each, and (iii) defaults and rights and remedies upon default. 7. Finalize Easements during Due Diligence Period. Developer and the HRA acknowledge and agree that Section 3.4(c)(2) of the Purchase Agreement is hereby amended and restated in its entirety to provide as follows: “(2) Finalize terms of any easements and/or agreements determined by the parties necessary for their intended uses of their respective lots within the Plat, specifically, without limitation: (a) That certain Grant of Permanent Public Access Easement for sidewalk on the Property; (b) That certain Temporary Construction Easement on the Park Lot to serve the property for staging grounds for the construction of the improvements on the Property; (c) That certain Declaration of Easements, Covenants and Restrictions for the Property pursuant to Section 3.13 of the Purchase Agreement; 3 25817590v4 (d) The form of an Easement and Maintenance Agreement for Restroom Facility on and Access to the Property, subject to revisions based on the final site plan for the Property prior to Closing; (e) A cost share agreement and easement between Developer and the Senior Cooperative Developer for the proposed private road serving the lots within the Plat and operation and maintenance of the private road; (f) An easement for access over the westerly 10 feet of the Property and the Senior Cooperative Lot for the benefit of the Senior Cooperative Lot and Park Lot; (g) That certain Temporary Construction Easement over the Property to serve the Senior Cooperative Lot for staging grounds for the construction of the improvements on the Senior Cooperative Lot; (h) That certain Temporary Construction Easement over the Property to serve the Park Lot for staging grounds for the construction of the improvements on the Senior Cooperative Lot; and (i) The cost share agreement and easement between the Developer, Senior Cooperative Developer and the HRA for the shared stormwater facility.” 8. Finalize Agreements during Due Diligence Period. Developer and the HRA acknowledge and agree that Section 3.4(c)(3) is hereby amended and restated in its entirety to provide as follows: “(3) Developer and the City finalizing the following agreements to be delivered at Closing: (a) An agreement related to Developer’s use of the Park Lot for restaurant services pursuant to that certain Memorandum of Understanding by and between the City and Developer, yet to be executed, regarding Developer’s use of the Park Lot (the “Park Lot Use Agreement”); (b) City authorization for non-exclusive parking on Brookside Avenue for the general public; (c) An agreement related to temporary exclusive use of portions of Brookside Avenue and/or Grandview Parking Facility for valet parking (the “Valet Agreement”); and 4 25817590v4 (d) An agreement related to sidewalk maintenance and access in and abutting the Park Lot, regarding sidewalk maintenance responsibilities and providing access from parking facilities to the Property (the “Sidewalk Access and Maintenance Agreement”).” 9. HRA Closing Documents. Developer and the HRA acknowledge and agree that following language is hereby added immediately following Section 3.7(a)(xi) of the Purchase Agreement: “(xii) That certain Grant of Easements for sidewalk and use of green space on the Property; (xiii) That certain Temporary Construction Easement on the Park Lot to serve as staging grounds for the Property; (xiv) That certain Grant of Permanent Access and Temporary Construction Easement over the Property; (xv) That certain Easement and Maintenance Agreement for Restroom Facility on and Access to the Property; (xvi) The Park Lot Use Agreement; (xvii) If determined applicable, the Valet Agreement with the City; (xviii) If determined applicable, the Sidewalk Access and Maintenance Agreement over the Park Lot; (xix) An easement for access over the westerly 10 feet of the Property and the Senior Cooperative Lot for the benefit of the Senior Cooperative Lot and Park Lot; and (xxi) The cost share agreement and easement for shared stormwater utility facilities between the HRA, Senior Cooperative Developer and the Developer.” 10. Developer Closing Documents. Developer and the HRA acknowledge and agree that following language is hereby added immediately following Section 3.7(b)(vi) of the Purchase Agreement: “(vii) That certain Grant of Easements for sidewalk and use of green space on the Property; (viii) That certain Temporary Construction Easement on the Park Lot to serve as staging grounds for the Property; 5 25817590v4 (ix) That certain Easement and Maintenance Agreement for Restroom Facility on and Access to the Property; (x) The Park Lot Use Agreement; (xi) If determined applicable, the Valet Agreement; (xii) If determined applicable, the Sidewalk Access and Maintenance Agreement; (xiii) The cost share agreement and easement between the Developer and Senior Cooperative Developer for the proposed private road serving the Property and Senior Cooperative Lot within the Plat and construction, operation and maintenance of the private road; (xiv) An easement for access over the westerly 10 feet of the Property and the Senior Cooperative Lot for the benefit of the Senior Cooperative Lot and Park Lot; (xv) That certain Temporary Construction Easement over the Property to serve the Senior Cooperative Lot for staging grounds for the construction of the improvements on the Senior Cooperative Lot; and (xvi) The cost share agreement and easement for shared stormwater utility facilities between the HRA, Senior Cooperative Developer and the Developer. 11. Miscellaneous. All capitalized terms contained herein which are not defined shall have the meanings ascribed to them in the Purchase Agreement. The Recitals set forth above are incorporated herein as if fully restated. This Amendment may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. The exchange of signature pages by facsimile or Portable Document Format ("PDF") transmission shall constitute effective delivery of such signature pages. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. In case of any inconsistency between this Amendment and the Purchase Agreement, the terms of this Amendment shall control. The Purchase Agreement, together with this Amendment, embody the entire understanding between HRA and Developer with respect to its subject matter and can be changed only by an instrument in writing signed by HRA and Developer. Except as modified by this Amendment, the Purchase Agreement is ratified, affirmed, in full force and effect, and incorporated herein by reference. [balance of this page intentionally left blank; signatures set forth on the following page] SIGNATURE PAGE TO FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT 225460v4 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written. HRA: Edina Housing and Redevelopment Authority, a public body corporate and politic under the laws of the State of Minnesota By: ______________________________ James B. Hovland Its: President By: ______________________________ James Pierce Its: Secretary Attested By: ______________________ Scott Neal Its: Executive Director SIGNATURE PAGE TO FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT 225460v4 DEVELOPER: Jester Concepts LLC, a Minnesota limited liability company By: _______________________________ Brent Frederick Its: Chief Manager Date: Marc h 23, 2023 Agenda Item #: VI.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R equest F or P urc hase F rom:C had A. Millner, P.E., Director of Engineering Item Activity: Subject:R equest for P urc hase: C hange O rder: P rofes s ional S ervic es for Eden Avenue and G range R oad R oundabouts 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: Approve R equest for P urchase for C hange Order for professional services for E den Avenue and G range Road roundabouts with S E H for $265,200. I N TR O D U C TI O N: T he H R A accepted the East G randview Transportation Study associated with the redevelopment of 4917 Eden Avenue (old P erkins site). T hat study identified improvements on E den Avenue, G range Road, and 50th S treet to improve safety of cyclist and pedestrians along with improving traffic safety and operations. T his contract will manage the construction of improvements at the intersection of E den Avenue and G range Road. AT TAC HME N T S: Description Request for Purchase: Professional Services for Eden Ave and Grange Rd Roundabouts Professional Services Agreement Request for Purchase Contract Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12200171 Department: Engineering Buyer: Chad Millner Date: 03/14/2023 Requisition Description: Change Order: Professional Services for Eden Grange Roundabout Vendor: SHORT-ELLIOT-HENDRICKSON INCORPORATED Cost: $265,200.00 REPLACEMENT or NEW: REPLACEMENT PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: The HRA accepted The East Grandview Transportation Study associated with the redevelopment of 4917 Eden Avenue (old Perkins site). That study identified improvements on Eden Avenue, Grange Road, and 50th Street to improve safety of cyclist and pedestrians along with improving traffic safety and operations. This contract will manage the construction of improvements at the intersection of Eden Avenue and Grange Road. BUDGET IMPACT: This project is funded by TIF funds collected from the district created with the redevelopment of 4917 Eden Avenue (old Perkins site). The estimated construction cost was $2.7 million. The low bid construction cost was $1.8 million. Professional Services Design and Bidding $301,588.00 + Construction Administration $265,200.00 = Total Professional Services fee of $566,788.00. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 10400 Yellow Circle Drive, Suite 500, Minnetonka, MN 55343-9229 952.912.2600 | 800.734.6757 | 888.908.8166 fax | sehinc.com SEH is 100% employee-owned | Affirmative Action–Equal Opportunity Employer SUPPLEMENTAL LETTER AGREEMENT March 13, 2023 RE: City of Edina Eden Avenue Double Mini Roundabout Construction Administration SEH No. EDINA 171759 10.00 Mr. Chad Millner, PE Director of Engineering City of Edina Engineering and Public Works Facility 7450 Metro Boulevard Edina, MN 55439 Dear Chad: Short Elliott Hendrickson Inc. (SEH®) appreciates the opportunity to submit the attached proposal for construction administration and observation services relative to the referenced project. Project Understanding/Scope of Services Our scope of work includes full construction administration, staking, and construction observation services in the following tasks: 1. Project Management This task consists of general project management duties, such as managing internal teams, schedule and budget, invoice management, pre-construction meeting, up to three on-site coordination meetings with private utility companies, and general project correspondence. 2. Staking SEH will create stakeout files for use by the contractor (if requested) and SEH surveyors. Staking services provided include removals, erosion control, easements/right-of-way, water main, storm sewer, retaining walls, curb and gutter, sidewalk, blue tops for Class 5, Police Department security improvements, and W 50th St turn lane improvements. 3. Construction Administration/Observation This task includes four primary sub tasks: a. Preconstruction Activities SEH will review shop drawings and contractor submittals and create a field quantity book and application for payment forms. Also includes the submittal of NPDES and MnDOT right-of-way and utility permits. b. Construction Administration We will prepare construction and contract documents, provide general engineering support throughout construction, prepare applications for payment and change orders, coordinate materials testing with the materials testing consultant, and coordinate private utility relocations. We will also attend weekly on-site construction meetings (including preparation of meeting agenda and minutes). c. Construction Observation Mr. Chad Millner, PE March 13, 2023 Page 2 We will provide full-time construction observation services throughout construction. d. Project Closeout SEH will provide project closeout services, including site closeout walkthrough, development and coordination of punch list, as-built survey, as-built drawings, and complete the final application for payment and project closeout letter. Assumptions: · Assumes pre-construction meeting will be held virtually. · Assumes up to 17 construction meetings will be held. Includes preparation of agenda and minutes. · Full time construction observation services consist of 50 hours per week for 17 weeks of construction (May thru substantial completion on August 25), then part time observation of 20 hours per week for 7 weeks until final completion on October 13. · Does not include materials testing. Assumes the City of Edina will contract with a materials testing consultant directly. SEH will coordinate testing when needed with the selected consultant. Fees, Billing & Estimated Project Costs If accepted, this supplemental letter agreement describes how we will provide these services for a not-to- exceed fee of $265,200.00. This amount is detailed in the attached Task Hour Budget (THB) and includes our reimbursable expenses. We will bill the City monthly for reimbursable expenses and on an hourly basis for labor. We will provide these services in accordance with our Agreement for Professional Engineering Services dated June 4, 2013, herein called the Agreement. This Supplemental Letter Agreement, THB, and the Agreement represent the entire understanding between the City of Edina and SEH in respect to the project and may only be modified in writing if signed by both parties. We look forward to working with you and your staff on this project. Please contact me at 952.912.2633 or kmanzke@sehinc.com with questions regarding this proposal. Sincerely, SHORT ELLIOTT HENDRICKSON INC. Kevin Manzke, PE (Lic. MN) Project Manager Toby Muse, PE (Lic. MN) Client Service Manager Mr. Chad Millner, PE March 13, 2023 Page 3 Enclosures x:\ae\e\edina\168826\1-genl\10-setup-cont\03-proposal\construction admin proposal\sla ltr eden ave ca rev 3 13 23.docx Accepted on this ___day of________________, 2023 City of Edina, Minnesota By: _________________________________ Name _________________________________ Title Date: Marc h 23, 2023 Agenda Item #: VI.D. To:C hair & C ommis s ioners of the Edina HR A Item Type: R equest F or P urc hase F rom:C had A. Millner, P.E., Director of Engineering Item Activity: Subject:R equest for P urc hase: ENG 22016 Eden Avenue and G range R oad R oundabouts 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: Approve R equest for P urchase for E N G22016 Eden Avenue and Grange R oad roundabouts construction contract with S M Hentges and Sons for $1,858,986. I N TR O D U C TI O N: T he H R A accepted the East G randview Transportation Study associated with the redevelopment of 4917 Eden Avenue (old P erkins site). T hat study identified improvements on E den Avenue, G range Road, and 50th S treet to improve safety of cyclist and pedestrians along with improving traffic safety and operations. T his contract will construct the improvements at the intersection of E den Avenue and G range Road. AT TAC HME N T S: Description Request for Purchase: ENG22016 Eden Ave and Grange Rd Roundabouts Contract ENG22016 Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12300034 Department:Engineering Buyer:Chad Millner Date: 03/14/2023 Requisition Description:Eden Grange Roundabouts Construction Contract Vendor:S M HENTGES & SONS INC Cost:$1,858,986.33 REPLACEMENT or NEW:REPLACEM - REPLACEMENT PURCHASE SOURCE:QUOTE/BD - QUOTE/BID DESCRIPTION: The HRA accepted The East Grandview Transportation Study associated with the redevelopment of 4917 Eden Avenue (old Perkins site). That study identified improvements on Eden Avenue, Grange Road, and 50th Street to improve safety of cyclist and pedestrians along with improving traffic safety and operations. This contract will construct the improvements at the intersection of Eden Avenue and Grange Road. BUDGET IMPACT: This project is funded by TIF funds collected from the district created with the redevelopment of 4917 Eden Avenue (old Perkins site). 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: This project involves upgrades to the storm sewer, localized rehabilitation of watermain systems, construction of new concrete curb and gutter, sidewalks, and complete reconstruction of bituminous pavement surfaces. Alternative construction methods utilized within the City include reclamation of existing bituminous surfaces to reuse aggregate base material, implementation of utility pipe rehabilitation through trenchless technologies thus reducing greenhouse gases associated with open cut installations. 1 1/2015 CONTRACT NO. ENG22016 THIS AGREEMENT made this 21st day of March, 2023, by and between the CITY OF EDINA, a Minnesota municipal corporation (“City”), the HOUSING AND REDEVELOPMENT AUTHORITY (“HRA”), and S.M. Hentges and Sons, Inc.(“Contractor”). City and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Instructions to Bidders. C. City of Edina General Contract Conditions. D. Addenda number 1. E. Specifications prepared by Chad A. Millner dated 2/17/2023. F. Plan sheets numbered 1 to 76. G. Performance Bond. H. Payment Bond. I. Responsible Contractor Verification of Compliance J. Contractor’s Bid dated 3/13/2023. The Contract Documents are to be read and interpreted as a who le. The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work and to require Contractor to provide the highest quality and greatest quantity consistent with the Contract Documents. If there are inconsistencies within or among part of the Contract Documents or between the Contract Documents and applicable standards, codes or ordinances, the Contractor shall provide the better quality or greater quantity of Work or comply with the more stringent requirements. 1.1 Before ordering any materials or doing any Work, the Contractor shall verify measurements at the Project site and shall be responsible for the correctness of such measurements. No extra charges or compensation will be allowed on account of differences between actual dimensions and the dimensions indicated on the Drawings. Any difference that may be found shall be submitted to the City for resolution before proceeding with the Work. 1.2 If a minor change in the Work is necessary due to actual field conditions, the Contractor shall submit detailed drawings of such departure to the City for approval before making the change. The City shall not be required to make any adjustment to either the Contract Sum or Contract Time because of any failure by the Contractor to comply with the requirements of this paragraph. Actual or alleged conflicts or inconsistencies between the Plans and Specifications or other Contract Documents shall be brought to the City’s attention in writing, prior to performing the affected Work. The City’s directions shall be followed by the Contractor. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. OBLIGATIONS OF THE CITY. The City agrees to pay and the Contractor agrees to receive and accept payment in accordance with the Contractor’s bid $1,858,986.33. 2 1/2015 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment wil l be processed by City as provided in the General Conditions. B. Progress Payments; Retainage. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work. C. Payments to Subcontractor. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpai d balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134 required from general contractor. Minn. Stat. § 290.92 requires that the City of Edina obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Upon final completion of the Work, City sh all pay the remainder of the Contract Price as recommended by City. 5. COMPLETION DATE. The Work must be completed and ready for final payment by October 13, 2023. 6. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in th e General Conditions; and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the Site. E. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and underground facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, me thods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, 3 1/2015 methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by City and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. I. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. K. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the City the names of the subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the City. (2) The Contractor is responsible to the City for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the City and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for an y and all defects in workmanship, materials, and equipment which ma y develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 8. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition, the Contractor shall reimburse the City for any cost of reasonable attorney’s fees it may incur as a result of any such claims. 9. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. City and Contractor each binds itself, its partners, successors, assigns and legal representatives t o the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unen forceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such 4 1/2015 stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books, records, documents and accounting procedures and practices to the Contractor and its subcontractors, if any, relative to this Contract are subject to examination by the City. E. Copyright/Patent. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. If the equipment provided by the Contractor pursuant to this Agreement contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a conditio n for continuing to use the software. F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Agreement without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or any succeeding breac h of this Agreement by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Agreement. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Hennepin County. I. Severability. If any provision, term or condition of this Agreement is found to be or becomes unenforceable or invalid, it shall not affect the remaining provisions, t erms and conditions of this Agreement, unless such invalid or unenforceable provision, term or condition renders this Agreement impossible to perform. Such remaining terms and conditions of the Agreement shall continue in full force and effect and shall c ontinue to operate as the parties’ entire agreement. J. Entire Agreement. This Agreement represents the entire agreement of the parties and is a final, complete and all inclusive statement of the terms thereof, and supersedes and terminates any prior ag reement(s), understandings or written or verbal representations made between the parties with respect thereto. K. Permits and Licenses; Rights-of-Way and Easements. The Contractor shall procure all permits and licenses, pay all charges and fees therefore, and give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction d elay resulting from the City’s not timely obtaining rights-of-way or easements. L. If the work is delayed or the sequencing of work is altered because of the action or inaction of the City, the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. 5 1/2015 M. Responsible Contractor. This contract may be terminated by the City at any time upon discovery by the City that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn Stat. § 16C.285, subd. 3. CITY OF EDINA CONTRACTOR BY: ____________________________ BY: ____________________________ Its Mayor Its AND ___________________________ AND ___________________________ Its City Manager Its 6 1/2015 HOUSING AND REDEVELOPMENT AUTHORITY BY: ____________________________ Its Chair AND ___________________________ Its Secretary Date: Marc h 23, 2023 Agenda Item #: VI.E. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eques t F or P urchas e F rom:C had A. Millner, P.E., Director of Engineering Item Activity: Subject:R equest for P urc hase: Material Tes ting for Eden Avenue and G range R oad R oundabouts 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 R equest for P urchase for material testing for E den Avenue and G range Road roundabouts with Braun I ntertec for $28,424. I N TR O D U C TI O N: T he H R A accepted the East G randview Transportation Study associated with the redevelopment of 4917 Eden Avenue (old P erkins site). T hat study identified improvements on E den Avenue, G range Road, and 50th S treet to improve safety of cyclist and pedestrians along with improving traffic safety and operations. T his contract will test construction materials at the intersection of Eden Avenue and Grange R oad. AT TAC HME N T S: Description Request for Purchase: Material Tes ting for Eden Ave and Grange Rd Roundabouts Construction Material Testing Agreement Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12300032 Department:Engineering Buyer:Chad Millner Date: 03/14/2023 Requisition Description:Eden Grange Construction Material Testing Services Vendor:BRAUN INTERTEC CORPORATION Cost:$28,424.00 REPLACEMENT or NEW:REPLACEM - REPLACEMENT PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: The HRA accepted The East Grandview Transportation Study associated with the redevelopment of 4917 Eden Avenue (old Perkins site). That study identified improvements on Eden Avenue, Grange Road, and 50th Street to improve safety of cyclist and pedestrians along with improving traffic safety and operations. This contract will test construction materials at the intersection of Eden Avenue and Grange Road. BUDGET IMPACT: This project is funded by TIF funds collected from the district created with the redevelopment of 4917 Eden Avenue (old Perkins site). The estimated construction cost was $2.7 million. The low bid construction cost was $1.8 million. 2 COMMUNITY IMPACT: These projects can meet many of the seven guiding principles such as enhance the district’s economic viability, design for the present and the future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional, attractive, and life-filled place, organize parking as an effective resource for the district by linking community parking to public and private destinations while also providing parking that is convenient for businesses and customers, improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation, and create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina’s innovative development heritage. ENVIRONMENTAL IMPACT: NA Service Contract AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com March 10, 2023 Proposal QTB174082 Chad Millner, PE City of Edina 7450 Metro Boulevard Edina, MN 55439 Re: Proposal for Construction Materials Testing Services Eden Avenue & Grange Road Roundabouts City Project No. ENG-22016, A-286 Edina, Minnesota Dear Mr. Millner: Braun Intertec Corporation is pleased to submit this proposal to provide construction materials testing services for the Eden Avenue & Grange Road Roundabouts project in Edina, Minnesota. Since our inception in 1957, we have grown into one of the largest employee owned engineering firms in the nation. With more than 1,000 employee owners, retaining our firm gives you access to a diverse range of services and professionals you can consult with if the unforeseen occurs. The size of our company also allows us to respond quickly when schedule constraints occur. Our Understanding of Project This project consists of a base bid that will include reconstructing the intersection of Eden Avenue and Grange Road to include two roundabouts, as well as an alternate bid at the intersection of W 50th Street and E Sunnyslope Road. The construction will include pavement subgrade preparation, select granular embankment placement in areas of extra subgrade excavation, aggregate base placement, new concrete curb and gutter, sidewalk, median pavement and pole foundations along with a new bituminous pavement. Improvements to the storm, and water main utilities will also be part of this project, as well as the construction of a modular block retaining wall. Available Project Information This proposal was prepared using the following documents and information. Project plans prepared by Short Elliot Hendrickson Inc., (SEH), dated February 17, 2023. Project specifications prepared by the City of Edina, dated February 17, 2023. A Soil Boring and Laboratory Testing Report prepared by Braun Intertec, dated November 21, 2022. City of Edina Proposal QTB174082 March 10, 2023 Page 2 Discussions with and Chad Millner with the City of Edina regarding compaction testing of utility backfill and aggregate base, as well as compaction testing and testing rates for the construction of the retaining wall. Scope of Services Services are performed under the direction of a licensed professional engineer. Observation and testing services will be performed an on-call, as-needed basis as requested and scheduled by you or your on-site project representative. After reviewing available information to determine compliance with project plans and/or specifications and other design or construction documents, our scope of services for the project will be limited to the tasks defined below. Soil Related Services Measure the in-place dry density, moisture content and relative compaction of retaining wall backfill for compliance with the project documents. This task includes performing laboratory Proctor tests to provide maximum dry densities from which the relative compaction of fill can be determined, as well as the use of a nuclear density gauge to measure in-place dry densities and moisture contents. Sample and test aggregate base, retaining wall backfill, coarse filter aggregate, granular backfill and select granular embankment materials for compliance with the project documents. This task includes laboratory gradation testing of aggregate base material. Perform MnDOT dynamic cone penetrometer (DCP) tests on aggregate base materials. Observe and evaluate the soils exposed in the bottoms of excavations to determine if the soils are similar to those encountered with the geotechnical evaluation and suitable for support of fill, foundations or pavements. Our engineer can provide consultation for conditions that appear to differ from the geotechnical evaluation. Concrete Related Services Sample and test fresh concrete associated with pavement and/or curb-and-gutter for compliance with the project documents, and cast test cylinders for laboratory compressive strength testing. We assume that we will be able to appropriately dispose of excess concrete (and associated wash water) on site at no additional cost to us. Measure and report the compressive strength of the concrete test cylinders for compliance with the project documents. A set of three cylinders will be tested at 28 days for each set cast. If field cure cylinders are requested, each additional cylinder will be charged at the unit price listed in our cost estimate. Bituminous Related Services Sample and test bituminous pavement materials for compliance with the project documents. This task includes asphalt content and extracted aggregate gradation tests of the bituminous. City of Edina Proposal QTB174082 March 10, 2023 Page 3 Consulting, Project Communication and Reporting Services Project management, including scheduling of our field personnel. Review test reports, and communicating with you and the parties you may designate such as the project contractor(s), and other project team members, as needed. Transmit test results to the project team on a weekly basis. Basis of Scope of Work – Base Bid The costs associated with the proposed scope of services were estimated using the following assumptions. If the construction schedule is modified or the contractor completes the various phases of the project at different frequencies or durations than shown in this proposal, we may need to adjust the overall cost accordingly. The scope of work and number of trips required to perform these services are as shown in the attached table. Notable assumptions in developing our estimate include: We assume it will take three trips to complete the nuclear density gauge testing on this project. We assume compaction testing on aggregate base materials will be performed using the Dynamic Cone Penetration (DCP) method; a minimum of two tests will be conducted each trip with four trips assumed. We assume thirty-six sets of concrete tests will be required to complete the project. We assume the rebar observations before concrete placements will be completed by the project representative’s construction oversight manager. We assume your full time on-site construction observer will observe the test rolling for this project. We assume three sets of bituminous tests will be required to complete the project. Based on MnDOT’s 2360 specification “ordinary compaction” we assume the contractor will provide the rolling pattern for the compaction requirements for the project. We assume the project engineer of record will review and approve contractor’s quality control submittals and test results. You, or others you may designate, will provide us with current and approved plans and specifications for the project. Modification to these plans must also be sent to us so we can review their incorporation into the work. We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Shorter than 24 hours’ notice may impact our ability to perform the requested services, and the associated impacts will be the responsibility of others. City of Edina Proposal QTB174082 March 10, 2023 Page 4 If the work is completed at different rates than described above, this proposal should be revised. If the pace of construction is different than described above, this proposal should be revised. Basis of Scope of Work – Alternate Bid If alternate bid is awarded for this project the following additional hours/units would be needed to cover the work in those additional areas. We assume two additional sets of concrete tests will be required for the alternate bid of this project. Cost and Invoicing We will furnish the services described herein for an estimated fee in the table below. Table 1. Estimated Fee Service Fee Construction Materials Testing - Base Bid $27,390 Construction Materials Testing - Alternate Bid $1,034 Total (Base Bid and Alternate) $28,424 Our estimated costs are based on industry averages for construction production. Depending on the contractor’s performance, our costs may be significantly reduced or slightly higher than estimated. A tabulation showing our estimated hourly and/or unit rates associated with our proposed scope of services is also attached. The actual cost of our services will be based on the actual units or hours expended to meet the requirements of the project documents. This cost estimate was developed with the understanding that the scope of services defined herein will be required and requested during our normal work hours of 6:00 a.m. to 4:00 p.m., Monday through Friday. Services that we are asked to provide to meet the project requirements or the contractor’s construction schedule outside our normal business hours will be invoiced using an overtime rate factor. The factor for services provided outside our normal work hours or on Saturday will be 1.25 times the listed hourly rate for the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the listed hourly rate for the service provided. We have not included premiums for overtime in our cost estimate; however, we recommend that allowances and contingencies be made for overtime charges based on conversations with the contractor. You will be billed only for services provided on a time and materials basis. Because our services are directly controlled by the schedule and performance of others, the actual cost may vary from our estimate. It is difficult to project all of the services and the quantity of services that may be required for any project. If services are required that are not discussed above, we will provide them at the rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on a monthly basis. City of Edina Proposal QTB174082 March 10, 2023 Page 5 General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. After reviewing this proposal, please sign and return one copy to our office as notification of acceptance and authorization to proceed. If anything in this proposal is not consistent with your requirements, please let us know immediately. Braun Intertec will not release any written reports until we have received a signed agreement. Also, ordering services from Braun Intertec constitutes acceptance of the terms of this proposal including the attached General Conditions. The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. City of Edina Proposal QTB174082 March 10, 2023 Page 6 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact Colin Keane at 612.704.2674 (ckeane@braunintertec.com) or Andrew Valerius at 952.995.2242 (avalerius@braunintertec.com). Sincerely, BRAUN INTERTEC CORPORATION Colin M. Keane Staff Engineer Andrew M. Valerius Account Leader, Senior Project Manager Charles M. Cadenhead, Jr., PE Vice President, Principal Engineer Attachments: Project Proposal – QTB174082 General Conditions – CMT (1/1/18) Is Alternate Bid selected for this project? (Circle One) YES NO The proposal is accepted. We will reimburse you in accordance with this agreement, and you are authorized to proceed: Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date Client:Service Description:Work Site Address: Eden Avenue between Hwy 100 & Willson Road AND Grange Road between Eden Avenue & W 50th Street Edina, MN 55424 City of Edina Chad Millner 7450 Metro Blvd Edina, MN 55439 (926) 826-0300 Construction Materials Testing Description Quantity Units Unit Price Extension Phase 1 Construction Materials Testing - Base Bid Activity 1.1 Soil Testing $6,320.00 207 Compaction Testing - Nuclear 7.50 Hour 88.00 $660.00 Work Activity Detail Qty Units Hrs/Unit Extension Modular Block Wall Backfill 2.00 Trips 2.50 5.00 Modular Block Wall Subgrade 1.00 Trips 2.50 2.50 1308 Nuclear moisture-density meter charge, per hour 7.50 Each 26.00 $195.00 1861 CMT Trip Charge 16.00 Each 30.00 $480.00 217 Compaction Testing - DCP's 12.00 Hour 88.00 $1,056.00 Work Activity Detail Qty Units Hrs/Unit Extension Aggregate Base - Mod Block Wall Leveling Pad 1.00 Trips 3.00 3.00 Aggregate Base - Roadway 3.00 Trips 3.00 9.00 1228 Topsoil Testing with nutrients, per sample 1.00 Each 390.00 $390.00 1530AG Asphalt Content of Aggregate Base, per sample 1.00 Each 155.00 $155.00 209 Sample pick-up 13.50 Hour 88.00 $1,188.00 Work Activity Detail Qty Units Hrs/Unit Extension Sample Pick Up 9.00 Trips 1.50 13.50 1318 Moisture Density Relationship (Proctor)2.00 Each 194.00 $388.00 1162 Sieve Analysis with 200 wash, per sample 8.00 Each 142.00 $1,136.00 126 Project Engineer 4.00 Hour 168.00 $672.00 Activity 1.2 Concrete Testing $14,796.00 261 Concrete Testing 90.00 Hour 88.00 $7,920.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb & Gutter 12.00 Trips 2.50 30.00 Flatwork - Sidewalk & Pavement 19.00 Trips 2.50 47.50 Light Foundations 4.00 Trips 2.50 10.00 Service Cabinet Equipment Pad 1.00 Trips 2.50 2.50 1861 CMT Trip Charge 54.00 Each 30.00 $1,620.00 1364 Compressive strength of concrete cylinders, per specimen 108.00 Each 34.00 $3,672.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb & Gutter 12.00 Sets 3.00 36.00 Flatwork - Sidewalk & Pavement 19.00 Sets 3.00 57.00 Light Foundations 4.00 Sets 3.00 12.00 Service Cabinet Equipment Pad 1.00 Sets 3.00 3.00 278 Concrete Cylinder Pick up 18.00 Hour 88.00 $1,584.00 Work Activity Detail Qty Units Hrs/Unit Extension Cylinder Pick Up 18.00 Trips 1.00 18.00 Activity 1.3 Pavement Testing $2,556.00 1530 Asphalt Content, per sample 6.00 Each 155.00 $930.00 Page 1 of 203/10/2023 02:18 PM Project Proposal QTB174082 City of Edina - Eden Ave & Grange Rd (ENG-22016, A286) Proposal Total:$28,424.00 209 Sample pick-up 9.00 Hour 88.00 $792.00 Work Activity Detail Qty Units Hrs/Unit Extension SPNWB330B 4.00 Trips 1.50 6.00 SPWEA340B 2.00 Trips 1.50 3.00 1532 Extracted Aggregate Gradation, per sample 6.00 Each 109.00 $654.00 1861 CMT Trip Charge 6.00 Each 30.00 $180.00 Activity 1.4 Project Management $3,718.00 226 Project Manager 15.00 Hour 168.00 $2,520.00 228 Senior Project Manager 3.00 Hour 194.00 $582.00 238 Project Assistant 7.00 Hour 88.00 $616.00 Phase 1 Total:$27,390.00 Phase 2 Construction Materials Testing - Alternate Bid Activity 2.1 Concrete Testing $822.00 261 Concrete Testing 5.00 Hour 88.00 $440.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb & Gutter 1.00 Trips 2.50 2.50 Flatwork - Sidewalk 1.00 Trips 2.50 2.50 1861 CMT Trip Charge 3.00 Each 30.00 $90.00 1364 Compressive strength of concrete cylinders, per specimen 6.00 Each 34.00 $204.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb & Gutter 1.00 Sets 3.00 3.00 Flatwork - Sidewalk 1.00 Sets 3.00 3.00 278 Concrete Cylinder Pick up 1.00 Hour 88.00 $88.00 Work Activity Detail Qty Units Hrs/Unit Extension Cylinder Pick Up 1.00 Trips 1.00 1.00 Activity 2.2 Project Management $212.00 226 Project Manager 1.00 Hour 168.00 $168.00 238 Project Assistant 0.50 Hour 88.00 $44.00 Phase 2 Total:$1,034.00 Page 2 of 203/10/2023 02:18 PM Project Proposal QTB174082 City of Edina - Eden Ave & Grange Rd (ENG-22016, A286) General Conditions Construction Material Testing and Special Inspections GC-CMT Page 1 of 2 Section 1: Agreement 1.1 Our agreement with you consists of these General Conditions and the accompanying written proposal or authorization (“Agreement”). This Agreement is the entire agreement between you and us. It supersedes prior agreements. It may be modified only in a writing signed by us, making specific reference to the provision modified. 1.2 The words “you,” “we,” “us,” and “our” include officers, employees, and subcontractors. 1.3 In the event you use a purchase order or other documentation to authorize our scope of work (“Services”), any conflicting or additional terms are not part of this Agreement. Directing us to start work prior to execution of this Agreement constitutes your acceptance. If, however, mutually acceptable terms cannot be established, we have the right to terminate this Agreement without liability to you or others, and you will compensate us for fees earned and expenses incurred up to the time of termination. Section 2: Our Responsibilities 2.1 We will provide Services specifically described in this Agreement. You agree that we are not responsible for services that are not expressly included in this Agreement. Unless otherwise agreed in writing, our findings, opinions, and recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. 2.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. If during the one year period following completion of Services it is determined that the above standards have not been met and you have promptly notified us in writing of such failure, we will perform, at our cost, such corrective services as may be necessary, within the original scope in this Agreement, to remedy such deficiency. Remedies set forth in this section constitute your sole and exclusive recourse with respect to the performance or quality of Services. 2.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and further that site conditions may vary over distance or change over time. 2.4 Our duties do not include supervising or directing your representatives or contractors or commenting on, overseeing, or providing the means and methods of their services unless expressly set forth in this Agreement. We will not be responsible for the failure of your contractors, and the providing of Services will not relieve others of their responsibilities to you or to others. 2.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, owner, project, or site health or safety. 2.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 2.7 Unless a fixed fee is indicated, our price is an estimate of our project costs and expenses based on information available to us and our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 3: Your Responsibilities 3.1 You will provide us with prior environmental, geotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed Services. 3.2 You will provide access to the site. In the performance of Services some site damage is normal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of damage in the estimated charges. 3.3 If we notify you that radiographic or gamma ray equipment or other nuclear testing or measuring device will be used, you will be responsible for the cooperation of your employees and your contractors in observing all radiation safety standards. 3.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials present on any work site. If we observe or suspect the presence of contaminants not anticipated in this Agreement, we may terminate Services without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 3.5 The time our field personnel spend on the job site depends upon the scheduling of the work we are observing or testing. You agree that any changes in scheduling may result in additional costs and agree to pay for those services at the rates listed in our cost estimate. 3.6 You agree to include us as an indemnified party in your contracts, if any, for work by others on the project, protecting us to the same degree as you are protected. You agree to list us as an Additional Insured under your liability insurance policies and to require subrogation be waived against us and that we will be added as an Additional Insured on all policies of insurance, including any policies required of your contractors or subcontractors, covering any construction or development activities to be performed on the project site. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report(s) in an electronic format. 4.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property. We hereby grant you a license to use the reports and related information we provide only for the related project and for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval. You agree to indemnify, defend, and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. 4.3 If you do not pay for Services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. 4.4 Electronic data, reports, photographs, samples, and other materials provided by you or others may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. Section 5: Compensation 5.1 You will pay for Services as stated in this Agreement. If such payment references our Schedule of Charges, the invoicing will be based upon the most current schedule. An estimated amount is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our performance is subject to credit approval and payment of any specified retainer. 5.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices upon receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 5.3 If you direct us to invoice a third party, we may do so, but you agree to be responsible for our compensation unless the third party is GC-CMT Revised 1/1/2018 Page 2 of 2 creditworthy (in our sole opinion) and provides written acceptance of all terms of this Agreement. 5.4 Your obligation to pay for Services under this Agreement is not contingent on your ability to obtain financing, governmental or regulatory agency approval, permits, final adjudication of any lawsuit, your successful completion of any project, receipt of payment from a third party, or any other event. No retainage will be withheld. 5.5 If you do not pay us in accordance with this Agreement, you agree to reimburse all costs and expenses for collection of the moneys invoiced, including but not limited to attorney fees and staff time. 5.6 You agree to compensate us in accordance with our Schedule of Charges if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 5.7 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work changes, or if changed labor conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice, the schedule will be extended for each day of delay, and we will be compensated for costs and expenses incurred in accordance with our Schedule of Charges. 5.8 If you fail to pay us in accordance with this Agreement, we may consider the default a total breach of this Agreement and, at our option, terminate our duties without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 5.9 In consideration of our providing insurance to cover claims made by you, you hereby waive any right to offset fees otherwise due us. Section 6: Disputes, Damage, and Risk Allocation 6.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party’s representative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 6.2 Notwithstanding anything to the contrary in this Agreement, neither party hereto shall be responsible or held liable to the other for punitive, indirect, incidental, or consequential damages, or liability for loss of use, loss of business opportunity, loss of profit or revenue, loss of product or output, or business interruption. 6.3 You and we agree that any action in relation to an alleged breach of our standard of care or this Agreement shall be commenced within one year of the date of the breach or of the date of substantial completion of Services, whichever is earlier, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute. We will not be liable unless you have notified us within 30 days of the date of such breach and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. You agree not to make a claim against us unless you have provided us at least 30 days prior to the institution of any legal proceeding against us with a written certificate executed by an appropriately licensed professional specifying and certifying each and every act or omission that you contend constitutes a violation of the standard of care governing our professional services. Should you fail to meet the conditions above, you agree to fully release us from any liability for such allegation. 6.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability for all claims will not exceed the fee paid for Services or $50,000, whichever is greater. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of this Agreement, you provide payment in an amount that will increase our fees by 10%, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the purchase of insurance. 6.5 You agree to indemnify us from all liability to others in excess of the risk allocation stated herein and to insure this obligation. In addition, all indemnities and limitations of liability set forth in this Agreement apply however the same may arise, whether in contract, tort, statute, equity or other theory of law, including, but not limited to, the breach of any legal duty or the fault, negligence, or strict liability of either party. 6.6 This Agreement shall be governed, construed, and enforced in accordance with the laws of the state in which our servicing office is located, without regard to its conflict of laws rules. The laws of the state of our servicing office will govern all disputes, and all claims shall be heard in the state or federal courts for that state. Each of us waives trial by jury. 6.7 No officer or employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not to make a claim against individual officers or employees. Section 7: General Indemnification 7.1 We will indemnify and hold you harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by your negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 7.2 To the extent it may be necessary to indemnify either of us under Section 7.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. Section 8: Miscellaneous Provisions 8.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our negligence. 8.2 You and we, for ourselves and our insurers, waive all claims and rights of subrogation for losses arising out of causes of loss covered by our respective insurance policies. 8.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 8.4 This Agreement may be terminated early only in writing. You will compensate us for fees earned for performance completed and expenses incurred up to the time of termination. 8.5 If any provision of this Agreement is held invalid or unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. 8.6 No waiver of any right or privilege of either party will occur upon such party's failure to insist on performance of any term, condition, or instruction, or failure to exercise any right or privilege or its waiver of any breach. Date: Marc h 23, 2023 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:Addis on Lewis, C ommunity Development C oordinator Item Activity: Subject:Modific ations to Home R ehab Loan P rogram 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: P rovide direction to staff on the three program areas as described and authorization to work with the City Attorney to amend contract documents as necessary. I N TR O D U C TI O N: T he H ome Rehab P rogram was created by the H R A in April 2021 to assist income eligible homeowners with home maintenance and energy improvements. Staff is seeking direction on three aspects of the program, as well as authorization to work with the C ity Attorney to revise existing agreements with C enter for Energy and Environment as necessary. 1. Does the H R A want to convert the program to a revolving loan fund so that repaid loans remain in the program and can be used for new loans? 2. Does the H R A want to amend the home value limit of $450,000? 3. Does the H R A wish to decline the option to purchase condos since our existing partner programs for long- term affordability preservation are only applicable to single-family homes? AT TAC HME N T S: Description Staff Report: Modifications to home Rehab Loan Program March 23, 2023 Chair and Commissioners of the HRA Addison Lewis, Community Development Coordinator Modifications to Home Rehabilitation Program Information / Background: On April 8, 2021, the Housing and Redevelopment Authority (HRA) approved the execution of loan documents and service agreements creating the Edina Home Rehabilitation Program in partnership with Center for Energy and Environment (CEE). CEE acts as our loan servicer and administrator. The program is intended to assist income eligible homeowners with home maintenance and energy improvements. Loans must be used first to address health, safety, and outstanding code violations. If there are no outstanding health, safety, or code violations, the funds may be used for energy improvements which are recommended through a Home Energy Squad visit. If all these items are addressed, funds may be used for any permanent interior or exterior improvement, including but not limited to roofing, siding, windows, doors, garage repair or replacement, interior remodeling, sidewalks/steps, driveways, solar and permanent landscaping. Homeowners are eligible if their income does not exceed 125% of the Area Median Income. Loan amounts range from $2,000 - $30,000. The loan is secured by a mortgage to the property. Loans are issued at 2% simple interests and are deferred for a period of 30 years or when the borrower sells, transfers title or if the home is no longer the primary residence of the original borrower, at which time 100% of the principal and interest is due. The loan principal and interest may be 100% forgiven if the house is sold to the HRA and either placed into a land trust through West Hennepin Affordable Housing Land Trust, added to the Metro HRA Affordable Housing Program, or preserved for long term affordability through another future mechanism as approved by the HRA. The program was initially approved with $250,000 of funding from the Affordable Housing Trust Fund. The program was immediately successful and additional funding was authorized by the HRA for a total of $1.5 million. To date, there have been 42 loans issued totaling $912,783.78. 17 of the loans have been for single- family homes and 25 have been for townhomes or condos. STAFF REPORT Page 2 Request Staff is seeking direction on three aspects of the program, as well as authorization to work with the City Attorney to revise existing agreements with CEE as necessary. 1. Convert to a revolving loan program. When the program was created, it was not set up that funds would remain in the program once they are repaid. Currently, any repaid funds would return to the general fund and could be used for any purpose. Staff is not currently authorized to use returned funds for new loans so once the original allocation of $1.5 million is disbursed, additional funding would need to be allocated to make any new loans. After accounting for loan servicing and administration fees, there is approximately $400,000 remaining. Staff is seeking direction from the HRA on whether to convert the program to a revolving loan program where repaid funds would stay in the program and be used for new loans. 2. Home value limit. When the program was created in April 2021, the HRA authorized a maximum home value limit of $450,000 for borrower eligibility. Upon contract approval the home value limit was set at $425,000 to align with the Come Home 2 Edina program guidelines. Since that time, the home purchase maximum for the Come Home 2 Edina program has increased to $500,000 and participation in the Rehab Program has slowed. Staff is seeking direction on whether the HRA would like to increase the home value limit. If so, staff would recommend a limit of $500,000 to be consistent with the Come Home 2 Edina program. For context, median single-family home values in Edina have increased 21.8% in the two years since the program was created so an increase of 21.8% to the $450,000 limit would be $548,216. 3. Decline option to buy condos. When the program was created, a secondary benefit was that a borrower may have their principal and interest 100% forgiven if the borrower and HRA mutually agree for the property to be sold to the HRA for long-term affordability. The intent was that these would be single-family homes that would be placed in a land trust through the West Hennepin Affordable Housing Land Trust or sold to Metro HRA for their Family Affordable Housing Program. These programs are not applicable to condos and staff is not aware of any partner organizations that acquire condos for long term affordability. As condominium owners are taking advantage of this program to improve their homes, Staff wants to be clear about the possibility for loan forgiveness. As such, staff is seeking confirmation from the HRA that any interest to acquire a property would only apply to single-family properties. Date: Marc h 23, 2023 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:R es olution 2023-04: Establis hing the 72nd and F rance 2 Tax Inc rement F inanc ing District 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 R esolution 2023-04 establishing the 72nd and France 2 Tax I ncrement Financing District. I N TR O D U C TI O N: T his item pertains to the future use of Tax I ncrement Financing to support redevelopment of 5-acres of vacant land located at 7200-7250 F rance Avenue. T he Resolution would establish the T I F "District" and a P lan for spending funds collected within the boundaries of the D istrict. A private developer proposes to redevelop the site with two new buildings and reconstruct the property in a manner that delivers many benefits to the general public. T he public benefits would not be possible without the use of tax increment financing. A staff report is attached separately. S taff recommends the approval of R esolution 2023-04. AT TAC HME N T S: Description Resolution 2023-04 Staff Report Staff pres entation TIF Plan HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 2023-04 ESTABLISHING THE 72nd AND FRANCE 2 REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Edina Housing and Redevelopment Authority (the "HRA") and the City of Edina (the "City") that the HRA adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for the Southeast Edina Redevelopment Project Area (the "Project Area") to establish the 72nd and France 2 Redevelopment Tax Increment Financing District (the "District") and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794, inclusive, as amended (the "Act”), all as reflected in the Plans and presented for the Board's consideration; and WHEREAS, the HRA has investigated the facts relating to the Plans and has caused the Plans to be prepared; and WHEREAS, the HRA has performed all actions required by law to be performed prior to the adoption of the Plans. The HRA has also requested the City Planning Commission to provide for review of and written comment on the Plans and that the Council schedule a public hearing on the Plans upon published notice as required by law. NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The HRA hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10(a)(1) and finds that the adoption of the proposed Plans conforms in all respects to the requirements of the Act and will help fulfill a need to dev elop an area of the City which is already built up, will help provide employment opportunities in the State of Minnesota and will help in the preservation and enhancement of the tax base of the City and State. 2. The HRA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. The boundaries of the Project Area are not being expanded. 4. The reasons and facts supporting the findings in this resolution are described in the Plans. HRA Resolution 2023-04 Page 2 5. The HRA elects to calculate fiscal disparities for the District in accorda nce with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. 6. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Executive Director of the HRA. 7. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a development agreement with any developer. 8. Upon approval of the Plans by the City Council, the Executive Director of the HRA is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 9. The Executive Director of the HRA is authorized and directed to forward a copy of the Plans to the Hennepin County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 469.177. Approved by the Board on March 23, 2023. ATTEST: _______________________________ James B. Hovland, Chair _______________________________ James Pierce, Secretary STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF EXECUTIVE DIRECTOR I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of March 23, 2023, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, 2023. Executive Director March 23, 2023 Chair and Commissioners of the Edina Housing and Redevelopment Authority Bill Neuendorf, Economic Development Manager Resolution 2023-04 Establish 72nd and France 2 Tax Increment Financing District Information / Background: The City and Housing and Redevelopment Authority are considering entering into a contractual agreement with Orion Investments to provide financial support using Tax Increment Financing (TIF) so that a wide array of public benefits can be delivered on private property. A new TIF District is proposed to be established to enable public financing for these improvements. The redevelopment site is located at 7200-7250 France Avenue. The substandard office buildings have been demolished to remove hazardous conditions and to prepare the site for new construction. In February 2023, the site was rezoned as Planned Unit Development #16. This zoning allows an office building, a hotel or multifamily building and extensive site work to include new public realm spaces for circulation, gathering and landscaping. This project is anticipated to result in several new publicly accessible routes through the property that do not exist today. These new routes are designed to be consistent with the goals of the Greater Southdale Plan and are considered benefits to the general public. The construction of these routes are not included in the City’s regular budget or Capital Improvement Plan. The new public routes include: new north/south roadway for motor vehicles extending from Gallagher to 72nd – to enable drivers to access both properties without using France Ave. new north/south paved trail for bicyclists and pedestrians extending from Gallagher to 72nd that is separated from vehicle traffic new east/west sidewalk with boulevard along 72nd St reconstructed sidewalk with boulevard on Gallagher reconstructed sidewalk with boulevard along France Ave with Metro Transit bus stop STAFF REPORT Page 2 new public plaza (Danila) with east/west sidewalk, landscaping and public art sculptures two new public gathering spaces adjacent to the western landscaped area that serves as a shared stormwater basin new public gathering spaces along France Ave with seating, landscaping and streetscaping elements The project is also anticipated to deliver additional elements that are consistent with the Comprehensive Plan, Sustainable Building Policy and TIF Policy including: new job opportunities new shared stormwater basin upgraded energy efficiency of both buildings to LEED Silver or equivalent efforts to provide additional employment and business opportunities for groups of people that have traditionally been underrepresented in the construction field Staff has met with the developer to understand the financial conditions that warrant consideration of public financing to deliver these benefits. Staff has also engaged legal and financial advisors at Ehlers Associates and Dorsey & Whitney to review the financial pro forma and provide input on the potential use of TIF for this project. Ehlers has scrutinized the financial pro forma and determined that the financial gap is approximately $7.5 million. Ehlers also confirmed that “but for” the use of TIF, this project will be unable to secure private financing. In February 2023, the HRA generally agreed with the general business terms proposed for the use of TIF on this site and authorized staff to prepare documentation for full consideration of a new TIF District. Tax Increment Financing (TIF) is one of the financial tools available to the City to encourage new investment in a manner that enhances the property tax base and achieves other community goals. TIF uses new property taxes (aka incremental taxes) that are generated by a new project to pay for some of the costs associated with the new project. The existing tax base continues to be distributed to the school, city, county and other taxing agencies. The use of TIF is governed by Minnesota Statutes that have evolved over several decades. These laws provide a number of protections to ensure that financial incentives are not over-used or mis-used. The City of Edina has historically used TIF to a lesser extent than its peers. The City’s TIF Policy limits financial risk to the City and strives to maximize public benefits when TIF is used. In this case, staff recommends that the old “Housing” TIF District be terminated and replaced with a new “Redevelopment” TIF District so that the project can be financed and constructed. This recommendation is based on the following: District is located within the boundaries of the Southeast Edina Redevelopment Project Area STAFF REPORT Page 3 Site qualifies as a new 25-year Redevelopment TIF District Boundaries include parcels at 7200-7250 France Avenue and adjacent streets Construction of PUD #16 can deliver many public benefits that would not otherwise be achieved as described earlier “But for” the use of TIF, this project would not be constructed and the public benefits would not be delivered The site has been investigated by Stantec to ensure it qualifies per the Minnesota TIF regulations. Ehlers Associates, the City’s public finance advisor has prepared a Tax Increment Financing Plan to establish the parameters of the new TIF District. This Plan has been reviewed by the City’s special counsel for redevelopment matters – Dorsey & Whitney to ensure compliance with State Law. Draft copies of this TIF Plan have been distributed to affected taxing agencies, including the Edina School District and Hennepin County in accordance with the process identified in State Law. As of the writing of this staff report, no concerns have been expressed regarding the creation of the 72nd and France 2 TIF District. This review by the HRA Board is one of several steps in the consideration of a new TIF District. The TIF Plan will be presented to the Edina Planning Commission on March 29, 2023. The Edina City Council will also hold a Public Hearing for additional input about the TIF Plan on April 4, 2023. Final action on the TIF District is anticipated to occur on April 18, 2023. Please note that the action taken in this HRA Resolution only consents to the establishment of the new T IF District. The TIF Redevelopment Agreement with the developer will be considered in a separate action scheduled for a future HRA meeting. Staff recommends that Resolution 2023-04 be approved. The CITY ofEDINA Establish the 72nd and France 2 Tax Increment Financing District March 23, 2023 Edina HRA April 4, 2023 Public Hearing April 18, 2023 Edina City Council www.EdinaMN.gov The CITY ofEDINA 2 Requested Action -by Edina HRA and City Council The a new Tax Increment Financing (TIF) District is proposed at 72nd & France. This TIF District is intended to support private redevelopment of two vacant commercial parcels in a manner that delivers several benefits to the general public. The Resolution will establish a TIF Plan that sets the boundaries, budget and duration of the TIF District. The TIF Plan also documents the qualifying conditions and confirms the “but for” test. Staff recommends approval of the Resolution. The CITY ofEDINABackground -Site Location 3 The CITY ofEDINA Photo Source: Minnesota Historic Society The Oscar Roberts Company 7200 France Ave Built 1967-69 Demolished 2022 Background -Former office buildings The Prestige Office Building 7250 France Ave Built 1972-74 Demolished 2022 4 The CITY ofEDINA 5Photo Source: Minnesota Historic Society 7250 France Ave. Source: Stantec Consulting; Existing conditions report dated Feb. 6, 2019 Conditions worsened significantly from 2019-2022 when the buildings were vacant Background -Substandard Conditions The CITY ofEDINA 6Photo Source: Minnesota Historic Society Background -Substandard Conditions Vacant Not safe for occupancy Temporary shoring Security fencing Heavy vandalism Frequent trespassing The CITY ofEDINA 7Photo Source: Minnesota Historic Society Background -Substandard Conditions The CITY ofEDINA 8Photo Source: Minnesota Historic Society Background -Stormwater Conditions Stormwater collects on western portion of the property including drainage from neighboring properties The CITY ofEDINA 9Photo Source: Minnesota Historic Society Background -Previous Attempts to Redevelop 2014 2018 2016 2020 –21 Concepts only 2019 2017-18 The CITY ofEDINA 10 PUD Zoning and Phase 1 (7250) Site Approval February 7, 2023 Phase 2 (7200 site) entitlements anticipated 2023-2024 Approved Site Plan North 7200 7250 The CITY ofEDINA 11 Background -Community Vision & Plans Multi-modal Transportation Options -… improve access for pedestrians and bicyclists...” (SERP 3-4(4)) Mixed Use Development… support redevelopment that includes retail, housing and employment in walkable neighborhoods (SERP page 3-4(6)) Sustainability … protect the natural environment, promote energy efficiency, conserve natural resources and minimize impacts (Comp Plan pg 3-46) The CITY ofEDINA •Economic development financing tool used throughout the U.S. •Governed by Minnesota Statute •Enabled by City Council •“Tax Increment” Financing -uses growth in property tax base to fund private investment and public infrastructure 12 How TIF works Growth of Property Tax Base “Incremental Taxes” remain in TIF District Original + Market Value Taxes available to all agencies Original + Incremental Taxes available to all agencies Year 1 Year 25 Year 40+ $10.95M $98.5 M The CITY ofEDINA 13 How TIF works MN Statute allows TIF to be used to provide funding to attract private investment. TIF monies can be used for a variety of eligible expenses at the discretion of the local City Council. Edina’s TIF practice is to use TIF only when necessary. TIF should only reimburse a developer after projects are completed. The amount of TIF provided should be commensurate with the cost of elements that deliver long term public benefits. The CITY ofEDINA 14 How TIF works TIF in Edina is used on a limited basis and to a lesser extent than neighboring cities The CITY ofEDINASteps to Establish TIF District 15 •Boundaries •Project Scope •Budget •Term •Qualifications •But-for Step 1) Create “District” •Private developments •Public improvements Step 2) Consider Funding for Specific Projects •4-year knock down •5-year construction •Annual reporting •Debt payments •De-certification Step 3) Monitoring & Compliance Action considered today Action considered in future Plan Commission HRA Board School / County Public Hearing City Council HRA Board (April/May 2023) City Council (April/May 2023) The CITY ofEDINA •2 parcels •5 acres, extends to adjacent streets •Terminate the previous “Housing” District •Create new “Redevelopment” District •25 year term (2026-2051) •Original Tax Capacity = $217,506 •Projected Tax Capacity = $2,048,974 -Used to establish maximum budget 16 Proposed TIF Plan –location & duration The CITY ofEDINA Estimated Incremental Property Tax Collected •$34.0 million •Over 25 year term •With interest earnings •Excludes base taxes distributed to County, Schools, City, etc 17 Projected Uses of Tax Increment Funds •Acquisition $1.0 M •Site improvements $5.0 M (15%) •Utilities $1.5 M •Affordable Housing $3.5 M (10%) •Other Improvements $3.4 M (10%) •Administrative $2.5 M (7%) •Interest $17.1 M (50%) •Total $34.0 Million Page 10 of TIF Plan Proposed TIF Plan –Sources and Uses The CITY ofEDINA 18 Phase 1 All site work, all public realm benefits and 7250 office -Demolition: 2022 -Site prep: 2023 –2024 -Construction 2023-2025 -Occupancy: 2025 Phase 2 -Entitlements by 2024 -Remove temp. parking by 2025 -Construction anticipated 2024-2027 -Occupancy anticipated 2027 Phase 2 7200 Pad Proposed TIF Plan-Phased Development 7250 The CITY ofEDINA 19 •Demolition and site prep • New site work •Streetscape and landscape •Public realm areas •Stormwater area • 7250 office building • 7200 site prep Phase 2 7200 pad Proposed TIF Plan-Phase 1 Conditions The CITY ofEDINA 20 •All Phase 1 elements remain •7200 Hotel or Multi-Family or similar Ph 2 massing concept Proposed TIF Plan-Phase 2 Conditions The CITY ofEDINA 21 51% of 4.9 acre site is subject to permanent easements -Public sidewalks -Public plaza -Public roadway, sidewalks and trail -Stormwater 7200 (Ph 2) 7250 (Ph 1) Proposed TIF Plan-New Public Realm The CITY ofEDINA 22 France Ave frontage looking south Public plaza looking east Gallagher frontage looking northNorth-south public drive and sidewalk looking north Proposed TIF Plan-New Public Realm The CITY ofEDINA 23 •Redevelop with modern facilities that create jobs and add vitality to Greater Southdale •Create north-south road and bike/pedestrian trail between Gallagher and 72nd St as alternate to France Avenue •-secured with permanent public easement •-privately constructed •-privately maintained Proposed TIF Plan -Public benefits: new north/south roadway and trail The CITY ofEDINA •Streetscape, lighting, sidewalks, landscaping along France, Gallagher & 72nd •Permanent public easements (16,000 sq ft) •Privately constructed and privately maintained •City will continue to remove snow on France Ave sidewalk •Allow future Metro Transit bus stops 24 Proposed TIF Plan -Public benefits: new public realm & sidewalks The CITY ofEDINA •15,000 sq ft public plaza •Two public art sculptures at eastern and western ends •Secured by public easement •Privately owned and maintained •Art selected with community input •$100,000+ budget •Additional art elements incorporated into building as shown in plans •Agreeable to host future rotating public art displays (funded by others) 25 Proposed TIF Plan -Public benefits: new public plaza and public art The CITY ofEDINA •Two new public gathering spaces •Adjacent to natural area / stormwater basin •Secured by public easement •Privately owned and maintained •Seating and streetscape elements 26 Proposed TIF Plan -Public benefits: new public gathering areas The CITY ofEDINA 27 •Create dedicated stormwater management area for shared use of commercial and surrounding residential parcels •-approx. 44,000 sq ft •-secured with permanent easements •-privately constructed •-privately maintained •Landscaped with native plantings to create natural area with low environmental impact Proposed TIF Plan -Public benefits: new shared stormwater management The CITY ofEDINA 28 •Compliance with Edina’s new Sustainability Policy •-upgrade to LEED Silver or equivalent •-Electric Vehicle chargers •-Solar ready rooftops •Stormwater management for multiple properties Proposed TIF Plan -Public benefits: enhanced sustainability features The CITY ofEDINA 29 •Goals to be identified for each Phase •-Portion of work awarded to qualified MBE and WBE companies •-Portion of total job hours filled by BIPOC •-Portion of total job hours filled by women •Good faith efforts required for each Phase •-Developer and contractors must make active efforts to achieve goals, monitor progress and report results •-Penalty only if no effort made Image Source: Commercial Construction and Renovation Proposed TIF Plan -Public benefits: efforts toward equity and diversity goals The CITY ofEDINA 30 The growth in “Tax Capacity” within the District exceeds the average growth in the City by 10x. Proposed TIF Plan-Fiscal evalution The CITY ofEDINAProposed TIF Plan-Fiscal evalution 31 In the long term, the property taxes collected from the site (even with TIF) is more than the property taxes collected from a smaller scale development without TIF. 2051 TIF District Expires -$2.8 MM Cumulative Difference 2054 Break Even Point +$860,000 Annual Taxes Thereafter 7200-7250 France Site Tax Base Comparisons Estimated Market Value x Increase Adj. Net Tax Capacity x Increase Existing Site 10,950,300 142,016 Concept 1: Small Scale Redevelopment 25,200,000 2.3 328,096 2.3 Concept 2: Orion Phase I and II 68,506,680 6.3 893,618 6.3 The CITY ofEDINA In Conclusion: it is not reasonably expected that the proposed development with public realm benefits will be constructed without the use of Tax Increment Financing. •Site qualifies as a Redevelopment TIF District •Site plan consistent with the City’s general plans for redevelopment •Project capable of delivering many public benefits that would not otherwise be delivered •High construction costs creates a financial gap that that hinders the delivery of the new buildings and the new public benefits •Adequate incremental taxes anticipated to be generated to allow the project to proceed 32Appendix C of the TIF Plan Proposed TIF Plan –Findings gap The CITY ofEDINA 33 Recommended Action: Staff recommends that the Resolution be approved and that the new 72nd and France 2 TIF District be established. Public Hearing Date: April 4, 2023 Anticipated Adoption Date: April 18, 2023 Edina Housing and Redevelopment Authority City of Edina, Hennepin County, Minnesota Modification to the Redevelopment Plan Southeast Edina Redevelopment Project Area & Tax Increment Financing (TIF) Plan Establishment of 72nd and France 2 Tax Increment Financing District (a redevelopment district) BUILDING COMMUNITIES. IT’S WHAT WE DO. Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 DRAFT for REVIEW 3-8-2023 TABLE OF CONTENTS Modification to the Redevelopment Plan for Southeast Edina Redevelopment Project Area 1 MUNICIPAL ACTION TAKEN 1 Tax Increment Financing Plan for the 72nd and France 2 Tax Increment Financing District 4 FOREWORD 4 STATUTORY AUTHORITY 4 STATEMENT OF OBJECTIVES 4 REDEVELOPMENT PLAN OVERVIEW 5 DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED 5 DISTRICT CLASSIFICATION 6 DURATION & FIRST YEAR OF DISTRICT’S TAX INCREMENT 6 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS 7 SOURCES OF REVENUE/BONDS TO BE ISSUED 8 USES OF FUNDS 9 FISCAL DISPARITIES ELECTION 10 ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 11 SUPPORTING DOCUMENTATION 13 DISTRICT ADMINISTRATION 14 Appendix A: Map of Southeast Edina Redevelopment Project Area and the TIF District Appendix B: Estimated Cash Flow for the District Appendix C: Findings Including But/For Qualifications Appendix D: Redevelopment Qualifications for the District Appendix E: Project Description Appendix F: Permit Research DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Modification to the Redevelopment Plan for Southeast Edina Redevelopment Project Area The following text represents a Modification to the Redevelopment Plan for Southeast Edina Redevelopment Project Area. This modification is a continuation of the goals and objectives set forth in the Redevelopment Plan for Southeast Edina Redevelopment Project Area originally adopted September 29, 1977, and modified from time to time. Generally, the substantive changes include the establishment of the 72nd and France 2 Tax Increment Financing District. MUNICIPAL ACTION TAKEN Based upon the statutory authority described in the Redevelopment Plan, the public purpose findings by the City Council and for the purpose of fulfilling the City’s development objects as set forth in the Redevelopment Plan, the City Council has created, established and designated the Southeast Edina Redevelopment Plan pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.001 to 469.047. The original and amended Southeast Edina Redevelopment Plan documents designated the Southeast Edina Redevelopment Plan as a redevelopment project and also a tax increment financing plan for tax increment districts created prior to 1988. The Centennial Lakes Tax Increment Financing District was created in 1988 pursuant to Tax Increment Financing Plan 88-1, which was subsequently renamed the Centennial Lakes Tax Increment District and referred to by Hennepin County as District #1203 and #1249. For purposes of clarification, this modification will refer to the Southeast Edina Redevelopment Plan as the Southeast Edina Redevelopment Project Area Plan pursuant to Minnesota Statutes 469.002. The following municipal action has been taken with regard to the Southeast Edina Redevelopment Project Area Plan: September 29, 1977: The Housing and Redevelopment Authority of Edina (the “HRA”) approved the Southeast Edina Redevelopment Project Area Plan. October 5, 1981: The Southeast Edina Redevelopment Project Area Plan was amended to identify project costs and bonded indebtedness incurred to finance those costs. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 2 May 6, 1985: The HRA and the City approved an amendment to the Southeast Edina Redevelopment Project Area Plan which establishes an interest reduction program and enlarges the project area to include the “1985 Project Area.” August 19, 1985: The HRA and the City approved the First Amendment to the 1985 Amendment to the Southeast Edina Redevelopment Project Area Plan to enlarge the 1985 Project Area and authorize the issuance of additional bonds to acquire land within the enlarged 1985 Project Area. 1987: The HRA and City approved the 1987 Amendments to the Southeast Edina Redevelopment Plan to enlarge the project area to include the 1987 Project Area. 1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan to provide an Interest Reduction Program in the amount of $2,500,000 to assist in the financing and construction of housing units and authorize the HRA and City to incur additional bonded indebtedness. February 21, 2012: The HRA and City expand the Southeast Edina Project Area. April 17, 2012: The HRA and City establish the Southdale 2 Tax Increment Financing District. February 18, 2014: The HRA and City establish the Pentagon Park Tax Increment Financing District. March 2, 2016: The HRA and City establish the Grandview 2 Tax Increment Financing District. April 5, 2016: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District and establish the 66 West Tax Increment Financing District. June 20, 2017: The HRA and City establish the 50th and France 2 Tax Increment Financing District. October 16, 2018: The HRA and City establish the 44th and France 2 Tax Increment Financing District. November 20, 2018: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to increase the TIF Budget and enable special legislative pooling authority for affordable housing. November 20, 2018: The HRA and City also establish the West 76th Street Tax Increment Financing District. March 19, 2019: The HRA and City establish the 72nd and France Tax Increment Financing District. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 3 December 17, 2019: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to designate property to be acquired and establish the Amundson Avenue Tax Increment Financing District. August 4, 2021: The HRA and City establish the 4040 West 70th Street Tax Increment Financing District. September 9, 2021: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to increase the estimated project costs expected to be paid or financed with tax increment from the Southdale 2 TIF District, to include affordable housing project costs. October 19, 2021: The HRA and City establish the Eden / Willson Redevelopment Tax Increment Financing District. March 22, 2022: The HRA and City establish the 70th and France Renewal and Renovation Tax Increment Financing District. (As Modified April 18, 2023) April 18, 2023: The HRA and City establish the 72nd and France 2 Tax Increment Financing District. For further information, a review of the Redevelopment Plan for Southeast Edina Redevelopment Project Area, is recommended. It is available from the HRA Executive Director at the City of Edina. Other relevant information is contained in the Tax Increment Financing plans for the Tax Increment Financing Districts located within Southeast Edina Redevelopment Project Area. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 4 Tax Increment Financing Plan for the 72nd and France 2 Tax Increment Financing District FOREWORD The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina (the "City"), staff and consultants have prepared the following information to expedite the Establishment of the 72nd and France 2 Tax Increment Financing District (the "District"), a redevelopment tax increment financing district, located in Southeast Edina Redevelopment Project Area. STATUTORY AUTHORITY Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.001 - 469.047, inclusive, as amended (the “HRA Act”), and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Southeast Edina Redevelopment Project Area, originally adopted September 29, 1977, and modified from time to time. STATEMENT OF OBJECTIVES The District currently consists of two (2) parcels of land inclusive of adjacent street and internal rights-of-way and intersections depicted within the map contained in Appendix A. The District is being created to facilitate the private redevelopment of two vacant and obsolete commercial buildings into a new mixed-use development with supporting parking and public infrastructure improvements as more fully described in Appendix E. The HRA anticipates entering into an agreement with 7250 France Group, LLC or an affiliate entity as the developer. Development is anticipated to begin in 2023 and is anticipated to be constructed in two phases with completion by 2027. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan. The activities contemplated in the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Southeast Edina Redevelopment Project Area and the District. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 5 REDEVELOPMENT PLAN OVERVIEW Pursuant to the Redevelopment Plan and authorizing state statutes, the HRA or City is authorized to undertake the following activities in the District: 1.Property to be Acquired - Selected property located within the District may be acquired by the HRA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the HRA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The HRA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED The District encompasses all property identified by the parcels listed below inclusive of adjacent rights-of-way, abutting roadways and intersections. Parcel number Address Owner 31-028-24-14-0001 7200 France Ave S France Property Partners Llc 31-028-24-14-0015 7250 France Ave S 7250 France Group Llc Please also see the map in Appendix A for further information on the location of the District. The HRA or City may acquire any parcel within the District including interior and adjacent street or other rights of way. Any properties identified for acquisition will be acquired by the HRA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities, bridge, tunnel, underpass and other facilities; and carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The HRA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 6 Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. DISTRICT CLASSIFICATION The HRA and City, in determining the need to create a tax increment financing district in accordance with the TIF Act, find that the District, to be established, is a redevelopment district pursuant to M.S., Section 469.174, Subd. 10(a)(1). In meeting the statutory criteria, the HRA and City rely on the following facts and findings: $ The District consists of two (2) parcels. $ An inventory shows that parcels consisting of more than 70% of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. $ An inspection of the buildings located within the District finds that more than 50% of the buildings are structurally substandard as defined in the TIF Act. (See Appendix D). Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. DURATION & FIRST YEAR OF DISTRICT’S TAX INCREMENT Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first increment by the HRA or City (a total of 26 years of tax increment). The HRA or City elects to receive the first tax increment in 2026, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2051, or when the TIF Plan is satisfied. The HRA or City reserves the right to decertify the District prior to the legally required date. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 7 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2022 for taxes payable 2023. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2026) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the District; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the HRA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2023, assuming the request for certification is made before June 30, 2023. The final rates for 2023 were not available at the time the District was established. The estimated ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Southeast Edina Redevelopment Project Area, upon completion of the District, will annually approximate tax increment revenues as shown in the table below. The HRA and City request 100% of the available increase in tax capacity be used for repayment of the obligations of the HRA or City and current expenditures, beginning in the tax year payable 2026. The Project Tax Capacity (PTC) listed is an estimate of values when the District is completed. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 8 Estimated Project Tax Capacity (PTC) upon completion 2,048,974 Less: Estimated Original Net Tax Capacity (ONTC) 217,506 Less: Fiscal Disparities Contribution 367,062 Estimated Captured Tax Capacity (CTC) 1,464,406 Original Local Tax Rate 98.9070% Pay 2023 Prelim. Estimated Annual Tax Increment $1,448,400 Percent Retained by the HRA 100% Project Tax Capacity Note: Estimated PTC includes a 1.0% inflation factor for the duration of the District and is the estimated tax capacity of the District in year 26. The tax capacity of the District in year one is estimated to be $1,127,020. Pursuant to M.S., Section 469.177, Subd. 4, the HRA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found that some building permits have been issued during the 18 months immediately preceding approval of the Plan by the City. The permits were issued for demolition of the buildings. Although the total estimated valuation of the permits is $669,694, the permitted activity is not expected to increase the original net tax capacity. Please see Appendix F for the building permits that were issued. SOURCES OF REVENUE/BONDS TO BE ISSUED The total estimated tax increment revenues for the District are shown in the table below: SOURCES Tax Increment (26 years of collection) 32,346,151$ Interest 1,617,307 TOTAL 33,963,458$ DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 9 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by one or more pay- as-you-go notes. Any refunding amounts will be deemed a budgeted cost without a formal modification to this TIF Plan. This provision does not obligate the HRA or City to incur debt. The HRA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The HRA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $16,870,078. This figure represents the maximum amount supportable by the anticipated tax increment cashflow at an assumed 6.50% interest rate. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. USES OF FUNDS Currently under consideration for the District is a proposal to facilitate the private redevelopment of two vacant and substandard commercial properties into a new mixed-use commercial and/or residential development with supporting parking and public infrastructure improvements. The HRA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described herein. The HRA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. These estimates establish the maximum amount permitted to be expended, but the HRA and City is not obligated to expend the full amount. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 10 USES Land/Building Acquisition 1,000,000$ Site Improvements/Preparation 5,000,000 Affordable Housing*3,500,000 Utilities 1,500,000 Other Qualifying Improvements**3,370,078 Administrative Costs 2,500,000 PROJECT COSTS TOTAL 16,870,078$ Interest 17,093,380 PROJECT AND INTEREST COSTS TOTAL 33,963,458$ * Affordable Housing may not occur if the site plan for Phase 2 of the project designates a hotel use. However, other affordable housing could be funded through future pooling if sufficient increment is available. ** Includes costs of streets, roads, sidewalks, bridge, tunnel, underpass or similar improvements available for public use. The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to the TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 25% of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within the boundaries of Southeast Edina Redevelopment Project Area, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in the TIF Plan. Pursuant to M.S., Section 469.1763, Subd. 2(d), the HRA and City may elect to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the District. The HRA and City intend to pool tax increment paid by property within the District to be used to assist housing that meets the requirements contained in M.S., Section 469.1763, Subd. 2(d). FISCAL DISPARITIES ELECTION Pursuant to M.S., Section 469.177, Subd. 3, the HRA or City may elect one of two methods to calculate fiscal disparities contribution of commercial-industrial net tax capacity from the District. The HRA will choose to calculate fiscal disparities by clause b (inside the DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 11 District). ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS The estimated impact on other taxing jurisdictions described herein assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the HRA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: Entity Preliminary 2022/ Pay 2023 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) upon completion Percent of CTC to Entity Total Hennepin County 2,486,081,130 1,464,406 0.0589% City of Edina 172,325,185 1,464,406 0.8498% ISD 273 (Edina Public Schools)139,227,123 1,464,406 1.0518% Impact on Tax Base if "But/For" Not Met Entity Preliminary Pay 2023 Extension Rate Percent of Total Rate CTC Potential Annual Taxes Hennepin County 34.8050% 35.19% 1,464,406 $ 509,687 City of Edina 28.1720% 28.48% 1,464,406 412,553 ISD 273 (Edina Public Schools)28.0670% 28.38% 1,464,406 411,015 Other 7.8630%7.95% 1,464,406 115,146 98.9070% 100.00% $1,448,400 Impact on Tax Rates if "But/For" Not Met The estimates listed above display the estimated CTC after construction and the District is completed. The tax rate used for calculations is the Preliminary Pay 2023 rate as obtained from Hennepin County. The total net capacity for the entities listed above are based on Preliminary Pay 2023 figures provided by Hennepin County. The District will be certified under the Final Pay 2023 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S., Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 12 $32,346,151; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected as it is with any new development on a vacant site. New developments add an increase in traffic and additional overall demands to the call load. The addition of a new office building to the Southdale area is estimated to increase police call volume by 18- 36 calls per year. The addition of a new multifamily building likely brings an additional 50 calls per year. Alternatively, a new hotel may bring up to 120 calls depending on the type of hotel constructed. The City does not expect that the proposed redevelopment, in and of itself, will necessitate new capital investment in vehicles or facilities. The new development is estimated to add some fraction amount of operating costs estimated at $45,000 per year, but this amount will be partially offset by the removal of the existing buildings which has been a hazardous environment for an extended period of time and which has required intervention by the police on multiple occasions. The probable impact of the District on Fire/EMS services is not expected to be significant. New, fully sprinklered, non-age restricted apartment or mixed-use commercial office buildings are expected to generate approximately 21 to 28 calls annually and be of superior construction that is compliant with the latest building codes and have superior fire protection systems. Prior to redevelopment, the buildings being eliminated by the new development have public safety concerns that include: several unprotected old buildings that were non-sprinklered and had standpipes only. The City does not expect that the proposed development, in and of itself, will necessitate additional staffing or new capital investment in vehicles or facilities. The impact of the District on public infrastructure is expected to be minimal. The redevelopment is not expected to significantly impact any traffic movements external to the area and the redevelopment will provide most of the necessitated road and utility infrastructure improvements as part of the private development costs. The redevelopment also includes shared stormwater retention basin to serve the site as well as adjacent residential properties. The city’s current infrastructure for sanitary sewer and water will be able to handle the additional volume generated from the proposed development, but the City anticipates the addition of a looped watermain paid from the City’s water utility fund will benefit the DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 13 area. Based on the redevelopment plans, there are no additional City costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The redevelopment is expected to contribute an estimated $288,936 to $782,726 in Metropolitan Council sanitary sewer (SAC) and city sanitary sewer and water fees. The probable impact of any District general obligation debt issuance on the City’s ability to issue debt for general fund purposes is expected to be minimal. As presently proposed, it is not anticipated that there will be any general obligation debt issued in relation to this redevelopment. Any such issuance, if considered, would not be expected to require the City’s general revenue support and would not apply to the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $9,178,920. The amount is calculated by multiplying the total estimated increment of $31,346,151 by the school district’s percent of the proportionate share of the total tax rate, or 28.38%; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $11,382,488 The amount is calculated by multiplying the total estimated increment of $32,346,151 by the county’s percent of the proportionate share of the total tax rate, or 35.19%; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S., Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. At this time, no requests for additional information from the county or school district regarding the proposed redevelopment for the District have been received. SUPPORTING DOCUMENTATION DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District 14 Pursuant to M.S., Section 469.175, Subd. 1 (a), clause 7 this TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S., Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. (i) In making said determination, reliance has been placed upon (1) written representation made by the Developer to such effects, (2) review of the Developer’s anticipated proforma; and (3) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the City Council resolution approving the establishment of the District and Appendix C. (ii) A comparative analysis of estimated market value both with and without establishment of the District and the use of tax increments has been performed. Such analysis is included with the cashflow in Appendix B and indicates that the increase in estimated market value of the proposed redevelopment (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. DISTRICT ADMINISTRATION Administration of the District will be handled by the HRA Executive Director and Economic Development Manager. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Appendix A: Map of Southeast Edina Redevelopment Project Area and the TIF District DRAFT for REVIEW 3-8-2023 ¹º¹º ¹º ñ ñ ñ ¹º ¹º ¹º ¹º ¹º ñ ¹º ñ ñ ñTRACY AVEVERNON AVEWOODDALE AVEHANSEN RD70TH ST W FRANCE AVE SGLEASONRDEdina Community Center City Hall Southview Jr High Normandale Elementary Concord School Cornelia School Southdale Library Fire Station Public Works & Park Maintenance Creek Valley School FireStation Valley View Jr High Edina High School Countryside School Highland School Public Library M in n e hahaCre ekNineMileCre e kN i n e M ile C r e ek §¨¦494 RICHFIELD MINNEAPOLIS UV100 UV100 UV62 £¤169 §¨¦494 72nd & France 2 Canadian Pacific RailroadCanadian Pacific RailroadBLAKE RDSCHAEFER RDV ERN O N AV E CAHILL RD66TH ST W INTERLACHEN BLVD MALONEY AVE 4 4 T H ST W 50TH ST W 54TH ST W 58TH ST W 70TH ST W 76TH ST W DEWEY HILL RD VALLEY VIEW RD VALLEY VIEW RD 78TH ST W £¤169 UV62 February 2023 ±72nd & France 2 TIF District Southeast Edina Redevelopment Project Area 0 2,100 FeetDRAFT for REVIEW 3-8-2023 FRANCE AVE72ND ST W GALLAGHER DR 3102824140001 3102824140015LYNMAR LN±72nd and France 2 TIF District 0 100 FeetDRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Appendix B: Estimated Cash Flow for the District DRAFT for REVIEW 3-8-2023 72nd and France 2 RedevelopmentCity of Edina, MN Phase I: Multi-tenant office building Phase II: 150-unit Hotel or Multifamily building ASSUMPTIONS AND RATESDistrictType:RedevelopmentDistrict Name/Number:TBDCounty District #:TBDExempt Class Rate (Exempt)0.00%First Year Construction or Inflation on Value2024Commercial Industrial Preferred Class Rate (C/I Pref.)Existing District - Specify No. Years RemainingFirst $150,0001.50%Inflation Rate - Every Year:1.00%Over $150,0002.00%Interest Rate:6.50%Commercial Industrial Class Rate (C/I)2.00%Present Value Date:1-Aug-24Rental Housing Class Rate (Rental)1.25%First Period Ending1-Feb-25Affordable Rental Housing Class Rate (Aff. Rental)Tax Year District was Certified:Pay 2023First $100,000 0.75%Cashflow Assumes First Tax Increment For Development: 2026 Over $100,000 0.25%Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)Assumes Last Year of Tax Increment2051First $500,0001.00%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,0001.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residential Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio34.7030% Pay 2023 Prelim.First $500,0001.00%Fiscal Disparities Metro-Wide Tax Rate133.6670% Pay 2023 Prelim.Over $500,0001.25%Maximum/Frozen Local Tax Rate: 98.907% Pay 2023 Prelim.Agricultural Non-Homestead1.00%Current Local Tax Rate: (Use lesser of Current or Max.)98.907% Pay 2023 Prelim.State-wide Tax Rate (Comm./Ind. only used for total taxes)34.0000% Pay 2023 Prelim.Market Value Tax Rate (Used for total taxes)0.22160% Pay 2023 Prelim.Building Total PercentageTax Year Property CurrentClassAfterLandMarket Market Of Value Used OriginalOriginalTaxOriginalAfterConversionPIDOwner AddressMarket Value ValueValue for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.131-028-24-14-00017200 France Ave S6,668,300 1,000 6,669,300100% 6,669,300 Pay 2023 C/I Pref.132,636 C/I Pref.132,636 II231-028-24-14-00157250 France Ave S4,280,000 1,000 4,281,000100% 4,281,000 Pay 2023 C/I Pref.84,870 C/I Pref.84,870 I10,948,300 2,000 10,950,30010,950,300 217,506217,506Note:1. Base values are for pay 2023 based upon review of County website on February 28,2023.2. Located in SD # 273 and WS # 1.Area/ PhaseTax Rates BASE VALUE INFORMATION (Original Tax Capacity)DRAFT for REVIEW 3-8-2023 72nd and France 2 RedevelopmentCity of Edina, MN Phase I: Multi-tenant office building Phase II: 150-unit Hotel or Multifamily building Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./UnitsValueClass Tax Capacity Capacity/Unit 2024202520262027PayableIOffice360360 138,213 49,756,680 C/I Pref. 994,3847 100%100%100%100%2026IIApartments 325,000325,000 150 48,750,000 Rental609,3754,063 22%100%100%100%2027TOTAL98,506,680 1,603,759 Subtotal Residential150 48,750,000 609,375 Subtotal Commercial/Ind.138,213 49,756,680 994,384 Note:1. Market values are based upon preliminary estimates from the assessor's office and comparable properties in the area.Total Fiscal Local Local Fiscal State-wide MarketTax Disparities Tax Property Disparities PropertyValueTotalTaxes PerNew Use Capacity Tax Capacity CapacityTaxesTaxesTaxesTaxesTaxes Sq. Ft./UnitOffice994,384 345,081649,303642,206 461,259 337,325110,261 1,551,05111.22Apartments 609,3750609,375602,71500108,030710,745 4,738.30TOTAL1,603,759345,0811,258,6781,244,920461,259337,325218,2912,261,796Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.Total Property Taxes 2,261,796Current Market Value - Est. 10,950,300less State-wide Taxes (337,325)New Market Value - Est. 98,506,680less Fiscal Disp. Adj. (461,259) Difference 87,556,380less Market Value Taxes (218,291)Present Value of Tax Increment 13,401,752less Base Value Taxes (140,473) Difference 74,154,628Annual Gross TIF 1,104,448Value likely to occur without Tax Increment is less than:74,154,628 WHAT IS EXCLUDED FROM TIF?MARKET VALUE BUT / FOR ANALYSISTAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity)DRAFT for REVIEW 3-8-2023 72nd and France 2 RedevelopmentCity of Edina, MN Phase I: Multi-tenant office building TAX INCREMENT CASH FLOWProject Original Fiscal CapturedLocal Annual Semi-Annual State Admin. Semi-Annual Semi-Annual PERIOD% ofTaxTax Disparities TaxTax Gross Tax Gross Tax AuditoratNet Tax Present ENDING Tax PaymentOTC Capacity Capacity Incremental CapacityRate Increment Increment 0.36%10% IncrementValueYrs.Year Date- - - - 02/01/25- - - - 08/01/25- - - - 02/01/26100% 1,127,020 (217,506) (269,600) 639,914 98.907% 632,920 316,460 (1,139) (31,532) 283,788 249,709 0.5 2026 08/01/26100% 1,127,020 (217,506) (269,600) 639,914 98.907% 632,920 316,460 (1,139) (31,532) 283,788 491,558 1 2026 02/01/27100% 1,613,702 (217,506) (273,051) 1,123,146 98.907% 1,110,870 555,435 (2,000) (55,344) 498,092 902,679 1.5 2027 08/01/27100% 1,613,702 (217,506) (273,051) 1,123,146 98.907% 1,110,870 555,435 (2,000) (55,344) 498,092 1,300,858 2 2027 02/01/28100% 1,629,839 (217,506) (276,536) 1,135,797 98.907% 1,123,383 561,692 (2,022) (55,967) 503,703 1,690,848 2.5 2028 08/01/28100% 1,629,839 (217,506) (276,536) 1,135,797 98.907% 1,123,383 561,692 (2,022) (55,967) 503,703 2,068,563 3 2028 02/01/29100% 1,646,138 (217,506) (280,056) 1,148,576 98.907% 1,136,022 568,011 (2,045) (56,597) 509,369 2,438,504 3.5 2029 08/01/29100% 1,646,138 (217,506) (280,056) 1,148,576 98.907% 1,136,022 568,011 (2,045) (56,597) 509,369 2,796,800 4 2029 02/01/30100% 1,662,599 (217,506) (283,612) 1,161,482 98.907% 1,148,787 574,393 (2,068) (57,233) 515,093 3,147,717 4.5 2030 08/01/30100% 1,662,599 (217,506) (283,612) 1,161,482 98.907% 1,148,787 574,393 (2,068) (57,233) 515,093 3,487,589 5 2030 02/01/31100% 1,679,225 (217,506) (287,202) 1,174,517 98.907% 1,161,679 580,840 (2,091) (57,875) 520,874 3,820,457 5.5 2031 08/01/31100% 1,679,225 (217,506) (287,202) 1,174,517 98.907% 1,161,679 580,840 (2,091) (57,875) 520,874 4,142,847 6 2031 02/01/32100% 1,696,017 (217,506) (290,829) 1,187,682 98.907% 1,174,701 587,350 (2,114) (58,524) 526,712 4,458,589 6.5 2032 08/01/32100% 1,696,017 (217,506) (290,829) 1,187,682 98.907% 1,174,701 587,350 (2,114) (58,524) 526,712 4,764,392 7 2032 02/01/33100% 1,712,978 (217,506) (294,492) 1,200,979 98.907% 1,187,853 593,926 (2,138) (59,179) 532,609 5,063,886 7.5 2033 08/01/33100% 1,712,978 (217,506) (294,492) 1,200,979 98.907% 1,187,853 593,926 (2,138) (59,179) 532,609 5,353,953 8 2033 02/01/34100% 1,730,107 (217,506) (298,192) 1,214,409 98.907% 1,201,136 600,568 (2,162) (59,841) 538,565 5,638,030 8.5 2034 08/01/34100% 1,730,107 (217,506) (298,192) 1,214,409 98.907% 1,201,136 600,568 (2,162) (59,841) 538,565 5,913,166 9 2034 02/01/35100% 1,747,409 (217,506) (301,929) 1,227,974 98.907% 1,214,552 607,276 (2,186) (60,509) 544,581 6,182,618 9.5 2035 08/01/35100% 1,747,409 (217,506) (301,929) 1,227,974 98.907% 1,214,552 607,276 (2,186) (60,509) 544,581 6,443,588 10 2035 02/01/36100% 1,764,883 (217,506) (305,703) 1,241,674 98.907% 1,228,102 614,051 (2,211) (61,184) 550,656 6,699,164 10.5 2036 08/01/36100% 1,764,883 (217,506) (305,703) 1,241,674 98.907% 1,228,102 614,051 (2,211) (61,184) 550,656 6,946,694 11 2036 02/01/37100% 1,782,531 (217,506) (309,515) 1,255,511 98.907% 1,241,788 620,894 (2,235) (61,866) 556,793 7,189,105 11.5 2037 08/01/37100% 1,782,531 (217,506) (309,515) 1,255,511 98.907% 1,241,788 620,894 (2,235) (61,866) 556,793 7,423,886 12 2037 02/01/38100% 1,800,357 (217,506) (313,365) 1,269,486 98.907% 1,255,611 627,805 (2,260) (62,555) 562,991 7,653,807 12.5 2038 08/01/38100% 1,800,357 (217,506) (313,365) 1,269,486 98.907% 1,255,611 627,805 (2,260) (62,555) 562,991 7,876,491 13 2038 02/01/39100% 1,818,360 (217,506) (317,253) 1,283,601 98.907% 1,269,571 634,786 (2,285) (63,250) 569,250 8,094,564 13.5 2039 08/01/39100% 1,818,360 (217,506) (317,253) 1,283,601 98.907% 1,269,571 634,786 (2,285) (63,250) 569,250 8,305,773 14 2039 02/01/40100% 1,836,544 (217,506) (321,181) 1,297,857 98.907% 1,283,672 641,836 (2,311) (63,953) 575,573 8,512,605 14.5 2040 08/01/40100% 1,836,544 (217,506) (321,181) 1,297,857 98.907% 1,283,672 641,836 (2,311) (63,953) 575,573 8,712,927 15 2040 02/01/41100% 1,854,909 (217,506) (325,147) 1,312,256 98.907% 1,297,913 648,957 (2,336) (64,662) 581,958 8,909,096 15.5 2041 08/01/41100% 1,854,909 (217,506) (325,147) 1,312,256 98.907% 1,297,913 648,957 (2,336) (64,662) 581,958 9,099,090 16 2041 02/01/42100% 1,873,458 (217,506) (329,153) 1,326,799 98.907% 1,312,297 656,149 (2,362) (65,379) 588,408 9,285,142 16.5 2042 08/01/42100% 1,873,458 (217,506) (329,153) 1,326,799 98.907% 1,312,297 656,149 (2,362) (65,379) 588,408 9,465,339 17 2042 02/01/43100% 1,892,193 (217,506) (333,200) 1,341,487 98.907% 1,326,825 663,412 (2,388) (66,102) 594,922 9,641,795 17.5 2043 08/01/43100% 1,892,193 (217,506) (333,200) 1,341,487 98.907% 1,326,825 663,412 (2,388) (66,102) 594,922 9,812,697 18 2043 02/01/44100% 1,911,115 (217,506) (337,287) 1,356,322 98.907% 1,341,498 670,749 (2,415) (66,833) 601,501 9,980,050 18.5 2044 08/01/44100% 1,911,115 (217,506) (337,287) 1,356,322 98.907% 1,341,498 670,749 (2,415) (66,833) 601,501 10,142,136 19 2044 02/01/45100% 1,930,226 (217,506) (341,414) 1,371,306 98.907% 1,356,317 678,159 (2,441) (67,572) 608,146 10,300,853 19.5 2045 08/01/45100% 1,930,226 (217,506) (341,414) 1,371,306 98.907% 1,356,317 678,159 (2,441) (67,572) 608,146 10,454,575 20 2045 02/01/46100% 1,949,528 (217,506) (345,583) 1,386,439 98.907% 1,371,285 685,643 (2,468) (68,317) 614,857 10,605,101 20.5 2046 08/01/46100% 1,949,528 (217,506) (345,583) 1,386,439 98.907% 1,371,285 685,643 (2,468) (68,317) 614,857 10,750,889 21 2046 02/01/47100% 1,969,024 (217,506) (349,794) 1,401,724 98.907% 1,386,403 693,201 (2,496) (69,071) 621,635 10,893,644 21.5 2047 08/01/47100% 1,969,024 (217,506) (349,794) 1,401,724 98.907% 1,386,403 693,201 (2,496) (69,071) 621,635 11,031,906 22 2047 02/01/48100% 1,988,714 (217,506) (354,047) 1,417,161 98.907% 1,401,672 700,836 (2,523) (69,831) 628,482 11,167,291 22.5 2048 08/01/48100% 1,988,714 (217,506) (354,047) 1,417,161 98.907% 1,401,672 700,836 (2,523) (69,831) 628,482 11,298,414 23 2048 02/01/49100% 2,008,601 (217,506) (358,342) 1,432,753 98.907% 1,417,093 708,547 (2,551) (70,600) 635,396 11,426,807 23.5 2049 08/01/49100% 2,008,601 (217,506) (358,342) 1,432,753 98.907% 1,417,093 708,547 (2,551) (70,600) 635,396 11,551,159 24 2049 02/01/50100% 2,028,687 (217,506) (362,680) 1,448,501 98.907% 1,432,669 716,334 (2,579) (71,376) 642,380 11,672,920 24.5 2050 08/01/50100% 2,028,687 (217,506) (362,680) 1,448,501 98.907% 1,432,669 716,334 (2,579) (71,376) 642,380 11,790,849 25 2050 02/01/51100% 2,048,974 (217,506) (367,062) 1,464,406 98.907% 1,448,400 724,200 (2,607) (72,159) 649,434 11,906,319 25.5 2051 08/01/51100% 2,048,974 (217,506) (367,062) 1,464,406 98.907% 1,448,400 724,200 (2,607) (72,159) 649,434 12,018,155 26 2051 02/01/52 Total32,463,018 (116,867) (3,234,615) 29,111,536 Present Value From 08/01/2024 Present Value Rate 6.50%13,401,752 (48,246) (1,335,351) 12,018,155 DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Appendix C: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for 72nd and France 2 Tax Increment Financing District (the “District”), as required pursuant to Minnesota Statutes (M.S.), Section 469.175, Subdivision 3 are as follows: 1. Finding that 72nd and France 2 Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10. The District consists of two (2) parcels within the Southeast Edina Redevelopment Project Area and their internal and external rights-of-way, abutting roadways and intersections, with plans for demolition and clearance of substandard buildings for the private redevelopment of underutilized property at 7200 and 7250 France Avenue. As identified by HRA Resolution 2022-08, parcels consisting of at least 70% of the area of the District were found to be occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50% of the buildings in the District, not including outbuildings, were structurally substandard to a degree requiring substantial renovation or clearance within three years of the filing of the request for certification of the District. (See Appendix D of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of 72nd and France 2 Tax Increment Financing District permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the activities proposed in the TIF Plan meets the City's objectives for redevelopment. The existing property contains substandard buildings whose renovation requires high costs related to demolition, remediation, site improvement, and construction of infrastructure. The redevelopment also requires substantial investment toward public improvements. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District The combination of limited amounts of property available for expansion adjacent to the existing redevelopment site and the public and private cost of financing the proposed improvements which are essential to the comprehensive redevelopment of the area, this project is feasible only through assistance, in part, from tax increment financing. The developer provided a proforma outlining project sources and uses as well as projected rent, vacancy and financing assumptions. City staff and the City’s advisors reviewed the information and have determined that the project is not feasible without assistance due to the anticipated rent levels and market returns not supporting the overall redevelopment costs for this site. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan: This finding is justified on the grounds that the development intensity and tax base created on currently underutilized and declining property requires site and public improvement costs that are improbable without public assistance. Specifically, the costs of site preparation, demolition, remediation, and public improvements to include infrastructure will add significantly to the total redevelopment cost of any development in this area. Site and public improvement costs necessary to sustain the approved density have made redevelopment infeasible without tax increment assistance. The City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total estimated increase in market value will be at least $87,556,380. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $13,401,752. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $74,154,628 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for the District conforms to the general plan for the development or redevelopment of the municipality as a whole. The City of Edina Planning Commission reviewed the TIF Plan on March 29, 2023 and approved a resolution to provide written opinion affirming that the TIF Plan conforms to the general plans for the development and redevelopment of the City as a whole. 4. Finding that the TIF Plan for 72nd and France 2 Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Southeast Edina Redevelopment Project Area by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for the redevelopment of substandard and underutilized property, construction of the new mixed-use private development which will result in increased employment within the City and the State of Minnesota, an increase in tax base, and add a high-quality development to the City. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Appendix D: Redevelopment Qualifications for the District DRAFT for REVIEW 3-8-2023 DRAFT for REVIEW 3-8-2023 DRAFT for REVIEW 3-8-2023 Final Report of Inspection Procedures and Results For Determining Qualifications of a Tax Increment Financing (TIF) District as a Redevelopment District Edina HRA Proposed TIF District Edina, Minnesota Stantec Project No. 193804653 February 6, 2019 DRAFT for REVIEW 3-8-2023 Page 2 Table of Contents PART 1 Executive Summary 3 Purpose of Evaluation 3 Scope of Work 3 Conclusion 4 PART 2 Minnesota Statute 469.174, Subdivision 10 Requirements 4 PART 3 Procedures Followed 6 PART 4 Findings 7 A. Coverage Test 7 B. Condition of Building Test 8 1. Replacement Cost 8 2. Code Deficiencies 8 3. System Condition Deficiencies 9 C. Distribution of Substandard Structures 11 D. Conclusion 11 PART 5 Team Credentials 12 APPENDIX A Map of Proposed TIF District Hennepin County Property Maps APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Code Deficiency Estimated Replacement Costs APPENDIX D Photographs DRAFT for REVIEW 3-8-2023 Page 3 PART 1 – EXECUTIVE SUMMARY PURPOSE OF EVALUATION Stantec was retained by the City of Edina HRA to inspect and evaluate the properties within a Tax Increment Financing Redevelopment District (“TIF District”) proposed to be established by the City. The proposed TIF District is located in the City of Edina, in a general area between 72nd Street West on the north, Gallagher Drive on the south, and France Avenue South on the east (Figure 1). The purpose of Stantec’s work was to determine whether the proposed district meets the statutory requirements for coverage, and whether buildings on the two parcels, located within the proposed TIF District, meet the qualifications required for a Redevelopment District. Figure 1 – Proposed TIF District SCOPE OF WORK The proposed district consists of two (2) parcels containing two (2) commercial multi- tenant office buildings, one (1) over a three-level parking ramp, and one (1) with on- grade paved parking lot. DRAFT for REVIEW 3-8-2023 Page 4 All the buildings in the proposed district received an onsite interior and exterior inspection. Building Code and Condition Deficiency Reports for each building inspected by Stantec are in Appendix B. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10(a), it is our professional opinion that the proposed TIF District does qualify as a Redevelopment District. The remainder of this report describes our process and findings in detail. PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10a, which states: Interior Inspection "The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building." Exterior Inspection and Other Means "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." Documentation "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." Qualification Requirements Minnesota Statutes, Section 469.174, Subdivision 10(a)requires two tests for occupied parcels: 1. Coverage Test ”…parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” DRAFT for REVIEW 3-8-2023 Page 5 The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: " For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” 2. Condition of Building Test …”parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; and (2) the conditions described in clause (1) are reasonably distributed throughout the geographic area of the district.” 1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: “For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance.” Definition of Substantial Renovation Substantial renovation, for purposes of Minnesota Statutes, Section 469.174, Subdivision 10(c), is defined as renovation with costs exceeding 15 percent of the building's replacement value. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is DRAFT for REVIEW 3-8-2023 Page 6 structurally substandard. Items of evidence that support such a conclusion include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a building to be disqualified under the provisions of this paragraph is a necessary, but not a sufficient, condition to determining that the building is substandard." "Items of evidence that support such a conclusion include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." PART 3 – PROCEDURES FOLLOWED Stantec performed interior and exterior inspections for both commercial buildings within the proposed TIF District on January 23, 2019. Visual observations were made of all levels of all properties and structures, with physical measurements taken where necessary. Area calculations and construction data are based upon information from various sources, as noted. DRAFT for REVIEW 3-8-2023 Page 7 PART 4 – FINDINGS A. Coverage Test 1. The total square foot area of each parcel in the proposed TIF District was obtained from Hennepin County Property Map GIS mapping, and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, Hennepin County Property Map GIS mapping, construction documents provided by the City, and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. Findings: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities or paved drives or parking lots (Figure 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision 10(a) (1). Figure 2 – Coverage Test Aerial View DRAFT for REVIEW 3-8-2023 Page 8 B. Condition of Building Test 1. Replacement Cost The first step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2019. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Edina, Minnesota. Replacement cost includes labor, materials, and the contractor's overhead and profit. Replacement costs do not include architectural fees, legal fees or other “soft" costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix C. 2. Code Deficiencies The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. Thus, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. Stantec utilized the 2015 Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2019; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. DRAFT for REVIEW 3-8-2023 Page 9 Finding: Both buildings/structures (100 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). A complete Building Code and Condition Deficiency report for each building/structure in the proposed TIF District can be found in Appendix B of this report. 3. System Condition Deficiencies System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors, and doors. The evaluation was made by reviewing all available information contained in City records; and making interior and exterior inspections of the buildings. Stantec only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of "service life" used up for a particular component unless it was an obvious part of that component's deficiencies. Minnesota Statutes, Section 469.174, Subdivision 10(c), provides for the minimum threshold of code deficiencies that must be met in order to consider a building substandard. If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or deficiencies should be of sufficient total significance to justify substantial renovation or clearance." Based on this definition, Stantec re-evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted "substantial renovation or clearance" based on the criteria we outlined above. Finding: In our professional opinion, both buildings/structures (100 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance as described below: DRAFT for REVIEW 3-8-2023 Page 10 Multi-Tenant Office Building – 7200 France Avenue South – Parcel 3102824140001 This building was found to be structurally substandard with code deficiencies that exceed the 15 percent of the building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). Multi-Tenant Office Building/Parking Ramp – 7250 France Avenue South – Parcel 3102824140015 This building and parking ramp was found to be structurally substandard with code deficiencies that exceed the 15 percent of the building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). NOTE: The parking ramp has been condemned by the City of Edina due to extreme deterioration of the precast concrete deck planks at the support beams. Structural steel framing has been added in some locations to support the deteriorated precast concrete deck planks prior to the condemnation determination. Building owner has some temporary shoring in place currently to keep the decks in place. DRAFT for REVIEW 3-8-2023 Page 11 C. Distribution of Substandard Structures Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District. Finding: The substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District (Figure 3). Figure 3 – Distribution of Substandard Structures (shown hatched green) D. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10a, it is our professional opinion that the proposed TIF District does qualify as a Redevelopment District. DRAFT for REVIEW 3-8-2023 Page 12 PART 5 – TEAM CREDENTIALS Bruce P. Paulson, AIA – Senior Project Manager/Inspector Bruce has more than 42 years of architectural experience as project architect, project manager, and project designer for municipal, governmental, educational, commercial, hospitality, and healthcare clients. He is involved with all phases of the architectural process, from pre-design through construction administration, including specialty consulting in investigations for buildings, building condition surveys, TIF inspections, code reviews, estimating, and specification writing. DRAFT for REVIEW 3-8-2023 APPENDIX A DRAFT for REVIEW 3-8-2023 DRAFT for REVIEW 3-8-2023 DRAFT for REVIEW 3-8-2023 Hennepin County Property Map Date: 2/5/2019 Comments: 1 inch = 100 feet PARCEL ID: 3102824140001 OWNER NAME: France Equities Ii Llc Et Al PARCEL ADDRESS: 7200 France Ave S, Edina MN 55435 PARCEL AREA: 3.51 acres, 152,751 sq ft A-T-B: Torrens SALE PRICE: $3,300,000 SALE DATA: 09/2018 SALE CODE: Excluded From Ratio Studies ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Commercial-Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $5,226,000 TAX TOTAL: $183,601.62 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Commercial-preferred HOMESTEAD: Non-homestead MARKET VALUE: $6,569,300 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2019 DRAFT for REVIEW 3-8-2023 PID:31-028-24-14-0001 Property Address: 7200 France Ave S Lot /Block:000 / 000 Addition:Unplatted 31028 24 Owner(s): Project(s): City of Edina Commercial Field Card Printed:1/22/2019 Assessment Year: 2019 Version:1 Building:1 France Equities II LLC C - Commercial POD-1 Property Type: Zoning: District:53 Neighborhood:1020 Watershed:01 School District:0273 Comments Depreciation and Age Air Cond.)Percent/Type( Mechanicals Heating )Percent/Type( Basement Model Codes Type Building Detail Building Miscellaneous Totals Last Inspection Functional %: Economic %: Physical %: Garages and Parking Type1: Type2: Type3: Type4: Type5: Type Parking-Surface Spaces Area Rental $ Code 1: Code 2: Code 3: Code 4: Suffix % Pools TypeNumber Building Heights Average Story Height:10.5 Number of Stories:3.0 Average Clearance Height:8.0 Finished Ceiling Height:8.0 Miscellaneous Area (SqFt): Basement Area Percent: Electrical Service:Average Plumbing:Average Sprinkler Type / Percent: / Heating 1:100/ HVAC Heating 2: / Heating 3: / A/C 1:100/ Central A/C 2: / A/C 3: / First Floor Area:13,250 Gross Building Area:39,750 Building Areas Income Information Gross Income: Vacancy Percent: Effective Gross Income: Operating Expense: Net Income: Capitalization Rate: Gross Rent Multiplier: Rent / Square Feet: 3 STORY MULTI-TENANT OFFICE BLDG, UNEXCAVATED. ENTRY ON 1ST FLR FROM WEST PARKING LOT WHICH IS BELOW STREET GRADE AND A 2ND FLOOR LOBBY ENTRY FROM FRANCE AVE AT THE EAST SIDE AT STREET GRADE. Original 22,893 SF building was built in 1966. There was a 16,857 SF addition built in 1968. The weighted average year built for the building is 1967. Zoning:1-POD Area Rating:Very Good Site Rating:Fair Land Quality: Contamination: Flood Plain Map Ref: PUD Ref: Allowable Units: Excess Land (SqFt): Zoning Variance:N Frontage:325 Left Side:470 Rear Side 325 Right Side:470 Effective Width:325 Effective Depth:470 Effective Water:0 Property Area (SqFt): 152,751 Acreage:3.51 Park: Park Quality: On Lake: Lake Quality: On River: Curbs Gas Gutter Irregular Shape Paved Street Sewer Available Sidewalk Soil Correction Water Available Attributes Influences Apartment Commercial/Industrial Thru Street Land Actual Age: 1967 Effective Age: 1995 Renovated Age: Quality Partial Construction (%): Overall Quality: Architectural Appeal:Average Construction Quality:Average Construction Type:Masonry Name: On France7200 Walls and Roof Primary Exterior Walls:Concrete Secondary Exterior Walls:Brick Roof Construction:Concrete Roof Type:Flat Income/Lease: Tenant:Tenant-Multi Current Inspection Appraiser ID: Appraisal Date: Reason: Result: Basement Basics Building Ratios and Perimeter Land Building Percent:384.3 Floor Area Percent:26.0 Perimeter Length:634 Office Area: Gross Office Area Percent: Last Sale Flat Value Value: Desc: Date:09/28/2018 Price:$3,300,000 Code:04 Desc:Sale. Partial Int Appraiser ID: SMS Appraisal Date:09/13/2017 Reason: Quintile Review Result: Exterior Bsmt. Model Code Suffix: Elevator(s):1 344 - Office Building - - - Bsmt. Model Code: - Mezzanine Area: Total Floor Area:39,750 Net Rentable Area: O 100 0 0 0 DRAFT for REVIEW 3-8-2023 PID:31-028-24-14-0001 Property Address: 7200 France Ave S Lot /Block:000 / 000 Addition:Unplatted 31028 24 Owner(s): Project(s): City of Edina Commercial Field Card Printed:1/22/2019 Assessment Year: 2019 Version:1 Building:1 France Equities II LLC C - Commercial POD-1 Property Type: Zoning: District:53 Neighborhood:1020 Watershed:01 School District:0273 DRAFT for REVIEW 3-8-2023 Hennepin County Property Map Date: 1/22/2019 Comments: 1 inch = 100 feet PARCEL ID: 3102824140015 OWNER NAME: France Equities Llc PARCEL ADDRESS: 7250 France Ave S, Edina MN 55435 PARCEL AREA: 1.68 acres, 73,079 sq ft A-T-B: Torrens SALE PRICE: $6,350,000 SALE DATA: 05/2007 SALE CODE: Warranty Deed ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Commercial-Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $4,161,700 TAX TOTAL: $145,822.03 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Commercial-preferred HOMESTEAD: Non-homestead MARKET VALUE: $4,381,000 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2019 DRAFT for REVIEW 3-8-2023 PID:31-028-24-14-0015 Property Address: 7250 France Ave S Lot /Block:044 / 001 Addition:Oscar Roberts First Addition Owner(s): Project(s): City of Edina Commercial Field Card Printed:1/22/2019 Assessment Year: 2019 Version:1 Building:1 France Equities, LLC C - Commercial POD-1 Property Type: Zoning: District:55 Neighborhood:1020 Watershed:01 School District:0273 Comments Depreciation and Age Air Cond.)Percent/Type( Mechanicals Heating )Percent/Type( Basement Model Codes Type Building Detail Building Miscellaneous Totals Last Inspection Functional %: Economic %: Physical %: Garages and Parking Type1: Type2: Type3: Type4: Type5: Type Parking-Ramp Garage-Underground Spaces 195 108 Area 72,691 48,460 Rental $ Code 1: Code 2: Code 3: Code 4: Suffix % Pools TypeNumber Building Heights Average Story Height:11.3 Number of Stories:4.0 Average Clearance Height: Finished Ceiling Height:8.0 Miscellaneous Area (SqFt):3,889 Basement Area Percent:30.7 Electrical Service:Above Average Plumbing:Above Average Sprinkler Type / Percent:100/ Yes Heating 1:100/ HVAC Heating 2: / Heating 3: / A/C 1:100/ Central A/C 2: / A/C 3: / First Floor Area:12,672 Gross Building Area:54,577 Building Areas Income Information Gross Income: Vacancy Percent: Effective Gross Income: Operating Expense: Net Income: Capitalization Rate: Gross Rent Multiplier: Rent / Square Feet: 4 STORY OFFICE BLDG OVER 3 LEVEL RAMP,TOP DECK OF RAMP IS AT STREET GRADE AND 1ST FLR OF OFFICE BLDG; The second parking level has 3,889 SF of finished space with a lunch room, conference room and storage/mechanical rooms. Each floor is 12,672 SF Zoning:1-POD Area Rating:Very Good Site Rating:Very Good Land Quality: Contamination: Flood Plain Map Ref: PUD Ref: Allowable Units: Excess Land (SqFt): Zoning Variance:N Frontage:237 Left Side:303 Rear Side 268 Right Side:300 Effective Width:265 Effective Depth:300 Effective Water:0 Property Area (SqFt): 73,080 Acreage:1.68 Park: Park Quality: On Lake: Lake Quality: On River: Curbs Gas Gutter Irregular Shape Paved Street Sewer Available Sidewalk Water Available Attributes Influences Apartment Commercial/Industrial Thru Street Land Actual Age: 1973 Effective Age: 1995 Renovated Age: Quality Partial Construction (%): Overall Quality: Architectural Appeal:Average Construction Quality:Average/ Good Construction Type:Reinforced Concrete Name:EDINA PROFESSIONAL BLDG Walls and Roof Primary Exterior Walls:Concrete Secondary Exterior Walls:Glass Roof Construction:Concrete Roof Type:Flat Income/Lease: Tenant:Tenant-Multi Current Inspection Appraiser ID: Appraisal Date: Reason: Result: Basement Basics Building Ratios and Perimeter Land Building Percent:133.9 Floor Area Percent:74.7 Perimeter Length:464 Office Area: Gross Office Area Percent: Last Sale Flat Value Value: Desc: Date:05/18/2007 Price:$6,350,000 Code:00 Desc:Good Sale Appraiser ID: SMS Appraisal Date:11/27/2012 Reason: Quintile Review Result: Interior Bsmt. Model Code Suffix:O Elevator(s):2 341 - Medical Office - - - Bsmt. Model Code:Medical Office - 341 Mezzanine Area: Total Floor Area:54,577 Net Rentable Area: O 100 0 0 0 DRAFT for REVIEW 3-8-2023 PID:31-028-24-14-0015 Property Address: 7250 France Ave S Lot /Block:044 / 001 Addition:Oscar Roberts First Addition Owner(s): Project(s): City of Edina Commercial Field Card Printed:1/22/2019 Assessment Year: 2019 Version:1 Building:1 France Equities, LLC C - Commercial POD-1 Property Type: Zoning: District:55 Neighborhood:1020 Watershed:01 School District:0273 DRAFT for REVIEW 3-8-2023 APPENDIX B DRAFT for REVIEW 3-8-2023 CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT February 6, 2019 Property ID No.: 3102824140001 7200 France Avenue South Inspection Date(s) and Time(s): 1-23-19, 8:00 a.m. Inspection Type: Interior and exterior. General Description of Property: 3 Story Commercial Multi-Tenant Office Building Type of Construction: Exterior masonry foundation and bearing walls, slab on grade at first floor, precast concrete floor and roof planks with concrete topping at second and third floors. Date of Construction: Original building constructed in 1966; addition constructed in 1968. Structure Size(s): 22,893 SF original building; 16,857 SF addition Summary of Deficiencies: It is our professional opinion that this building is Structurally substandard because: o Estimated cost to correct building code deficiencies is more than 15% of the estimated replacement cost. Estimated Replacement Cost: $7,870,500.00 Estimated Cost to Correct Building Code Deficiencies: $2,109,720.00 Percentage of Replacement Cost for Building Code Deficiencies: 26.8% Description of Condition Deficiencies • Replace deteriorated masonry retaining wall at east side of building before it fails • Current code requires all outswinging exit doors to have a structural stoop with frost footings to prevent heaving which could restrict the door swing and access/egress capability. • Sidewalks to both first floor exterior entrance doors are in need of replacement due to spalling and missing concrete. • Stair riser heights do not comply with current codes. Handrails and guardrails do not comply with current codes. • Restrooms are not in compliance with ADA guidelines. • All exterior windows are single-glazed. • All exterior walls are under-uninsulated. • Dead level built-up roofing system, where visible, shows signs of blistering, indicating roofing system is at end of its useful life. • The existing roof is under-insulated. • The existing lighting system does not comply with current codes for daylight harvesting and energy-efficiency. • The existing mechanical system does not comply with current codes for ventilation. DRAFT for REVIEW 3-8-2023 CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT February 6, 2019 Property ID No.: 3102824140015 7250 France Avenue South Inspection Date(s) and Time(s): 1-23-19, 7:00 a.m. Inspection Type: Interior and exterior. General Description of Property: 4 Story Commercial Multi-Tenant Office Building over 3 level parking ramp. Top deck of ramp is at street level and first floor of building. Type of Construction: Exterior masonry foundation and bearing walls, slab on grade at first floor, precast concrete floor and roof planks with concrete topping at second and third floors. Date of Construction: Building constructed in 1972. Parking Ramp Building Structure Size(s): Sub-basement/first parking level 49,100 GSF Basement/second parking level 49,100 GSF First Floor/street parking level 24,500 GSF 12,672 GSF Second Floor 12,672 GSF Third Floor 12,672 GSF Fourth Floor 12,672 GSF Penthouse 773 GSF Totals 122,700 GSF 51,461 GSF Summary of Deficiencies: It is our professional opinion that this building is Structurally substandard because: o Estimated cost to correct building code deficiencies is more than 15% of the estimated replacement cost. Estimated Replacement Cost: Parking Ramp $11,901,900.00 Office Building $10,189,278.00 Estimated Cost to Correct Building Code Deficiencies: $14,041,457.00 Percentage of Replacement Cost for Building Code Deficiencies: Parking Ramp 100% Building 20.9% Description of Condition Deficiencies • Parking ramp has been condemned by the City of Edina and requires total replacement • Restrooms are not in compliance with ADA guidelines. • Existing stairs are not in compliance with current codes for tread depth and riser heights. Handrails and guardrails at stairs do not comply with current codes for height or extension beyond top and bottom of stair runs. • All exterior walls are under-uninsulated. • The existing fully-adhered EPDM roofing system is under-insulated. • The existing lighting system does not comply with current codes for daylight harvesting and energy-efficiency. • The existing mechanical system does not comply with current codes for ventilation. DRAFT for REVIEW 3-8-2023 APPENDIX C DRAFT for REVIEW 3-8-2023 CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT ESTIMATED REPLACEMENT COSTS 1 Property ID No. & Property Address: 3102824140001 7200 France Avenue South Replace exterior masonry retaining wall at east side of building – 156’ x 8’ high x $55/SF $68,640.00 Replace aluminum guardrail at retaining wall 156LF x $125/LF $19,500.00 Replace exterior doors (4) Remove existing doors and frames – 9 @ $500/EA $4,500.00 New 3’ wide aluminum entrance door and frame 9 @ $3,050/EA $27,450.00 West front entrance stoop upgrade Demo existing sidewalk – 3 CY @ $385/CY $1,155.00 New concrete footing – 2 CY @ $410/CY $820.00 New 8” CMU walls – 56 SF @ $12.75/SF $714.00 New concrete stoop/ramp – 2.5 CY @ $385/CY $963.00 Replace sidewalk to parking lot – 5 CY @ $300/CY $1,500.00 South front entrance stoop upgrade Demo existing sidewalk – 3 CY @ $385/CY $1,155.00 New concrete footing – 2 CY @ $410/CY $820.00 New 8” CMU walls – 56 SF @ $12.75/SF $714.00 New concrete stoop/ramp – 2.5 CY @ $385/CY $963.00 Replace sidewalk to parking lot – 2.5 CY @ $300/CY $750.00 Upgrade three (3) stairs – 126 Risers @ $685/riser $86,310.00 Replace handrails at stairs - 293 LF @ $37/LF $10,841.00 Restroom upgrade – demolition and new construction Male Restrooms – 2 water closets, 2 urinals, 2 lavatories 180 SF @ $450/SF x 3 $243,000.00 Female Restrooms – 3 water closets, 3 lavatories 180 SF @ $450/SF x 3 $243,000.00 Replace existing single-glazed windows with new thermally- Improved frames and insulating glass – 1,988 SF @ $93/SF $184.884.00 Insulate exterior masonry walls – 17,500 SF @ $15/SF $262,500.00 Replace built-up roofing system with new fully adhered TPO roofing system with R-31.25 insulation 12,912 SF @ $13.00/SF $167,856.00 Replace lighting system – 35,775 SF @ $8.50/SF $304,088.00 HVAC System upgrade – 35,775 SF @ $7.85/SF $280,834.00 Ventilation System upgrade – 37,775 SF @ $5.50/SF $196,763.00 Estimated Cost to Correct Building Code Deficiencies: $2,109,720.00 DRAFT for REVIEW 3-8-2023 CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT ESTIMATED REPLACEMENT COSTS 2 Property ID No. & Property Address: 3102824140015 7250 France Avenue South Replace parking ramp – 122,700 SF x $97/SF $11,901,900.00 Upgrade two (2) stairs – 190 Risers @ $685/riser $130,150.00 Replace handrails at stairs - 301 LF @ $37/LF $11,137.00 Restroom upgrade – demolition and new construction Male Restroom – 1 water closet, 1 urinal, 1 lavatory (basement) 80 SF @ $450/SF $36,000.00 Female Restroom – 1 water closet, 1 lavatory (basement) 80 SF @ $450/SF $36,000.00 Male Restrooms – 2 water closets, 1 urinal, 2 lavatories 120 SF @ $450/SF x 4 $216,000.00 Female Restrooms – 3 water closets, 3 lavatories 120 SF @ $450/SF x 4 $216,000.00 Insulate exterior walls (35% glazed) – 13,674 SF @ $15/SF $205,110.00 Replace fully-adhered EPDM roofing system with new fully adhered TPO roofing system with R-31.25 insulation 12,672 SF @ $13.00/SF $164,736.00 Replace lighting system – 51.461 SF @ $8.50/SF $437,419.00 HVAC System upgrade – 51,461 SF @ $7.85/SF $403,969.00 Ventilation System upgrade – 51,461 SF @ $5.50/SF $283,036.00 Estimated Cost to Correct Building Code Deficiencies: $14,041,457.00 DRAFT for REVIEW 3-8-2023 APPENDIX D DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 1 EXISTING CONDITIONS PHOTOS Photo 1: South entrance/exit door at 7200 does not have structural stoop with frost footings Photo 2: West entrance/exit doors at 7200 does not have structural stoop with frost footings – sidewalk is also damaged Photo 3: Damaged sidewalk to south entrance/exit door at 7200 Photo 4: Stair treads/risers and handrails at 7200 do not comply with current does DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 2 EXISTING CONDITIONS PHOTOS Photo 5: Stair handrails and guardrails at 7200 to not comply with current codes Photo 6: Restrooms at 7200 are not ADA compliant Photo 7: Restrooms at 7200 are not ADA compliant Photo 8: Single-glazed windows at 7200 DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 3 EXISTING CONDITIONS PHOTOS Photo 9: Single-glazed windows at 7200 Photo 10: Single-glazed windows at 7200 Photo 11: Built-up roofing system at 7200 is under-insulated Photo 12: Built-up roofing system at 7200 is under-insulated DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 4 EXISTING CONDITIONS PHOTOS Photo 13: Built-up roofing system at 7200 is under-insulated Photo 14: Built-up roofing system at 7200 is under-insulated Photo 15: Built-up roofing system at 7200 is under-insulated Photo 16: Built-up roofing system at 7200 is under-insulated DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 5 EXISTING CONDITIONS PHOTOS Photo 17: Interior lighting at 7200 Photo 18: Interior lighting at 7200 Photo 19: Interior lighting at 7200 Photo 20: Mechanical roof-top equipment at 7200 DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 6 EXISTING CONDITIONS PHOTOS Photo 21: Mechanical roof-top equipment at 7200 Photo 22: Mechanical roof-top equipment at 7200 Photo 23: Mechanical roof-top equipment at 7200 Photo 24: Mechanical roof-top equipment at 7200 DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 7 EXISTING CONDITIONS PHOTOS Photo 25: West elevation at 7200 Photo 26: South elevation at 7200 Photo 27: East elevation at 7200 Photo 28: North elevation at 7200 DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 8 EXISTING CONDITIONS PHOTOS Photo 29: Deteriorated masonry retaining wall at 7200 Photo 30: Deteriorated masonry retaining wall at 7200 Photo 31: Deteriorated masonry retaining wall at 7200 Photo 32: Deteriorated masonry retaining wall at 7200 DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 9 EXISTING CONDITIONS PHOTOS Photo 33: 7250 Parking ramp deteriorated precast concrete Photo 34: 7250 Parking ramp structural steel shoring Photo 35: 7250 Parking ramp deterioration at bearing wall and steel angles and plates added to support deck above Photo 36: 7250 Parking ramp temporary shoring DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 10 EXISTING CONDITIONS PHOTOS Photo 37: 7250 Parking ramp structural steel shoring Photo 38: 7250 Parking ramp deteriorated concrete beam Photo 39: 7250 Parking ramp deteriorated concrete deck planks Photo 40: 7250 Parking ramp deteriorated concrete beam DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 11 EXISTING CONDITIONS PHOTOS Photo 41: 7250 Parking ramp hole in ramp plank Photo 42: 7250 Parking ramp temporary shoring Photo 43: 7250 restrooms not ADA compliant Photo 44: 7250 restrooms not ADA compliant DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 12 EXISTING CONDITIONS PHOTOS Photo 45: 7250 stairs, handrails and guardrails not code compliant Photo 46: 7250 stairs, handrails and guardrails not code compliant Photo 47: 7250 roof under-insulated-insulation fasteners show heat transfer-melted snow Photo 48: 7250 roof under-insulated-insulation fasteners show heat transfer-melted snow DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 13 EXISTING CONDITIONS PHOTOS Photo 49: 7250 roof under-insulated-insulation fasteners show heat transfer-melted snow Photo 50: 7250 roof under-insulated-insulation fasteners show heat transfer-melted snow Photo 51: 7250 interior Photo 52: 7250 interior DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 14 EXISTING CONDITIONS PHOTOS Photo 53: 7250 interior Photo 54: 7250 interior Photo 55: 7250 interior Photo 56: 7250 interior DRAFT for REVIEW 3-8-2023 PROPOSED EDINA TIF DISTRICT STUDY 193804653 15 EXISTING CONDITIONS PHOTOS Photo 57: 7250 roof-top mechanical equipment Photo 58: 7250 roof-top mechanical equipment Photo 59: 7250 roof-top mechanical equipment Photo 60: 7250 roof-top mechanical equipment DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Appendix E: Project Description DRAFT for REVIEW 3-8-2023 1 Project Description The 72nd and France 2 TIF Plan has been prepared to help facilitate coordinated redevelopment of two vacant and obsolete commercial properties in a manner that is consistent with Edina’s applicable standards and policies for new development. These documents include but are not limited to: Comprehensive Plan, approved 8-18-2020 Greater Southdale Area Plan, adopted 12-18-2018 Greater Southdale Design Experience Guidelines, approved 3-5-2019 Southeast Edina Redevelopment Area Plan, as modified 3-22-2022 Sustainable Buildings Policy, revised 9-7-2022 Multi-Family Affordable Housing Policy, revised 12-8-2022 Tax Increment Financing Policy, revised 12-20-2022 This TIF Plan is applicable to the 5-acre “Site” which primarily includes two commercial parcels located on the west side of France Avenue between 72nd Street and Gallagher Avenue. The Site also includes the adjacent street right of way that provides access to the site as well as connections to other parcels on the opposite sides of each of the surrounding streets. The Site is intended to be redeveloped by a team lead by Orion Investments with a variety of partners and advisors. The developer team will be structured as 7250 France Group, LLC, France Property Partners, LLC or an affiliated entity. The Edina City Council via adoption of Resolution 2023-11 and Ordinance 2022-13 approved the rezoning, overall development plan for the Site and final site plan for Phase 1. Final site plan approval for Phase 2 is anticipated to occur in the near future. Both phases of the project are intended to be redeveloped in a manner consistent with the Greater Southdale District Plan and the Greater Southdale Area Design Experience Guidelines to fulfill a portion of the City’s vision for overall redevelopment in the area. Both phases of the Site are also expected to adhere to the City’s environmental Concept site plan showing 7200 and 7250 properties and anticipated two-phase redevelopment. DRAFT for REVIEW 3-8-2023 2 sustainability objectives as adopted in the Sustainable Buildings Policy. The developer and their agents will use good faith efforts to meet the social equity objectives, specifically applying strategic efforts to increase the number of underrepresented people in the actual construction of the projects as well as structuring contracts to provide realistic opportunities for minority- and women- owned businesses to meaningfully participate in the construction contracts. Redevelopment of the Site is anticipated to occur in two phases. The first phase at 7250 France Avenue will consist of a new modern Class A professional multi-tenant office building with street level commercial spaces and below-grade structured parking. The five-level building has approximately 138,000 square feet of rentable space and will create and retain hundreds of professional jobs in Edina. This is likely to result in many additional visitors to the Greater Southdale District during Monday-Friday business hours. This phase will also deliver new infrastructure on the entire Site including utilities, public sidewalks with streetscape around the perimeter of the Site, a private north/south roadway with adjacent dedicated sidewalk/bike trail, a shared stormwater retention basin to serve the Site as well as the adjacent residential properties, and new public plaza areas. The first phase will also include preparation of a pad for the second phase at 7200 France Avenue. This pad may serve as a temporary parking area until Phase 2 is constructed. After the Site is redeveloped, the developer will encumber portions of the private property with permanent easements to ensure that the public realm elements are readily available to the public and to ensure that the stormwater needs of surrounding properties are maintained. In compliance with the approved rezoning, the second phase of redevelopment is anticipated to consist of a building containing either new multi-family housing building or hotel. A housing facility would consist of up to a total of 150 market rate and affordable units and possibly street level commercial space. Alternatively, the second phase may consist of new upscale or luxury / boutique hotel with approximately 100 to 150 rooms and amenities such as restaurant, shop, meeting-event space and/or beauty spa that are also open to Concept rendering of Phase 1 multi-tenant professional office building at 7250 France Avenue from Gallagher & France intersection. Birdseye concept rendering of Phase 2 multi-family residential or luxury hotel at 7200 France Ave. DRAFT for REVIEW 3-8-2023 3 the general public. Shared structured parking for the use of both new buildings will be provided below grade with minimal surface parking stalls. Removal of the Site’s two vacant and substandard buildings occurs as a precursor to the first phase of redevelopment. These structures suffered from deferred maintenance by previous ownership groups as they become obsolete in the marketplace over time. The HRA adopted findings through passage of Resolution 2022-08 to designate these buildings as substandard and facilitate their demolition and removal. (See Appendix D for inspection findings) The proposed redevelopment will advance many of the goals identified in Edina’s Comprehensive Plan including: Encourage … vibrant neighborhood nodes … (pg. 10-16) Live and Work … support commercial and mixed-use areas that serve the neighborhoods, the city and the larger region (pg. 3-47) Retain and attract employment opportunities (pg. 10-15) Residential Development Mix … support a wide range of housing options to meet the diverse needs, preferences, income levels and life stages for today and future Edina community (pg. 4-23 and 4-24) Sustainability … protect the natural environment, promote energy efficiency, conserve natural resources, and minimize impacts (pg. 3-46) The proposal is also consistent with several of the goals identified in the Southeast Edina Redevelopment Plan including: Mixed Use Development … support redevelopment that includes retail, housing, and employment in walkable neighborhoods (SERP 3-4(6)) Multi-modal Transportation Options … improve access for pedestrians and bicyclists (SERP 3-4(4)) Piecemeal redevelopment of these two individual properties would be unlikely to achieve some of the fundamental goals of the Greater Southdale District Plan – primarily the subdivision of large tracts of land without any through access for the general public. Coordinated redevelopment of both adjacent properties is essential to achieve numerous positive outcomes that add vitality to the France Avenue corridor and the Greater Southdale District. These tangible benefits are intended to include: New wide public sidewalks with landscaped boulevards, lighting, and streetscape elements along Gallagher, France, and 72nd New north-south private roadway that creates a new route for vehicles traveling between the two commercial parcels without using France Avenue New public sidewalk and bicycle trail that provides pedestrian and active transportation access between Gallagher and 72nd Street that is separated from vehicles – one of the first segments of the envisioned “western promenade” New stormwater basin with native plantings and other landscaping that serves the Site as well as all adjacent residential parcels DRAFT for REVIEW 3-8-2023 4 New public plazas and scenic overlooks that create new public realm amenities with streetscaping, landscaping and public art Potential to accommodate future enlarged mass transit station (BRT or similar) on France Avenue Potential for new or future underground or elevated connection across France Avenue for pedestrians and bicyclists Additional positive outcomes from the coordinate redevelopment are anticipated to be the addition of a new class A office facility within Phase 1 that will attract the creation (and help retain) hundreds of quality jobs to the community. The influx will bring additional Monday through Friday patronage to local businesses and help sustain a robust local economy. The Phase 2 hotel will diversify local lodging options and generate additional hospitality sales taxes used to support the Explore Edina Visitors Bureau and its actions to promote the community to visitors and guests. The Edina HRA via adoption of Resolution 2022-08 recognized the substandard nature of the existing buildings in advance of the creation of a new TIF District. This recognition allowed the demolition of the heavily vandalized buildings to occur as soon as possible. Demolition of the substandard structures is anticipated to be completed in 2023 with site preparation for the new buildings to follow. Phase 1 and Phase 2 redevelopment projects are anticipated to be completed by 2026 and 2027, respectively. The cost to clear the fully developed site and create the numerous public realm amenities increases the development budget significantly. The Edina HRA proposes to utilize incremental property taxes generated from the redeveloped Site to offset an anticipated private financing gap induced by these costs. Qualifying expenditures eligible for reimbursement with TIF include: demolition, site preparation, utilities, roadway infrastructure, sidewalk and bicycle trail infrastructure, pedestrian connections, stormwater facilities, streetscaping and landscaping on public plazas and other public realm areas. The HRA proposes to reimburse the developer for a portion of qualifying expenses through two interest-bearing pay-as-you-go (PAY- GO) TIF Notes issued separately only after each phase of the project is successfully completed. The TIF Notes would be payable solely from tax increment collected from the redeveloped Site. The HRA and City would bear no obligation to use any other funds to make payments on the TIF Notes. DRAFT for REVIEW 3-8-2023 Edina Housing and Redevelopment Authority 72nd and France 2 Tax Increment Financing District Appendix F: Permit Research DRAFT for REVIEW 3-8-2023 Report Name: Permit Search Printed: 2/9/2023 Page: 1Permit Search Results City of Edina Permit #Permit Type Sub Type Work Type Description Issued Date Final Date House Use Dead Date Cancel Date Street Unit Valuation ePerm User 1 User 2Exp Date PID ED199393 Building Office,Ban k,Professio nal (324or437) Other Demolition (645-649) Total demolition 9/13/227200 France Ave S Business 168,000 Yes mr 3102824140001 ED199722 Sewer & Water Commercia l Sewer and Water Disconnect Disconnect for Demolition 8/22/22 9/2/227200 France Ave S 5,000 Yes 3102824140001 2 Permit record(s) found Total Valuation: 173,000 Building P er mit S u m m ar y January 1, 2 0 2 1 t o F e br u ar y 9, 2 0 2 3 DRAFT for REVIEW 3-8-2023 PERMIT City of Edina Permit Type: Sewer & Water Permit Number: ED199722 *ED199722* Date Issued: 08/22/2022 Permit Category: ePermitSite Address: 7200 France Ave S Lot: 000 Block: 000 Addition: Unplatted 31 028 24 PID: 31-028-24-14-0001 Use: 4801 50th St West Edina, MN 55424 952-826-0372 www.edinamn.gov Description: Sub Type: Commercial Sewer and Water Work Type: Disconnect Description: Disconnect for Demolition Meter Size Meter Type Manufacturer Serial Number Remote Number Line Size Comments:Contact Edina Public Works to shut off water - 952-826-0375. It is the requirement of the permit applicant to call to schedule an inspection. Contact the Inspections Department at 952-826-0372 to schedule required inspections. APPLICATION FEE IS NON-REFUNDABLE. Valuation: 5,000.00 Fee Summary:Revenue CodeAmountDescription Residential (SW)$124.60 4116 Surcharge - Based on Valuation $2.50 4380 $127.10 Total: I have read the information contained herein and certified it to be correct. I agree to do the proposed work in accordance with the approved plans, the Edina City Code, and the Minnesota State Building Code and/or Minnesota State Fire Code. Contractor:Owner:- Applicant - France Property Partners Llc 708 5th St Se B-100 Minneapolis MN 55414 (763) 424-1504 Triple E Water And Sewer 5232 Hanson Crt N Crystal MN 55429 (763) 207-8068 St. Lic: PB710895 Applicant/Permitee: Signature Issued By: SignatureDRAFT for REVIEW 3-8-2023 PERMIT City of Edina Permit Type: Building Permit Number: ED199393 *ED199393* Date Issued: 09/13/2022 Permit Category: ePermitSite Address: 7200 France Ave S Lot: 000 Block: 000 Addition: Unplatted 31 028 24 PID: 31-028-24-14-0001 Use: Business 4801 50th St West Edina, MN 55424 952-826-0372 www.edinamn.gov Description: Sub Type: Office,Bank,Professional (324or437) Work Type: Other Demolition (645-649) Description: Total demolition Census Code: 650 - Demolition - Entire Comm Building Zoning: Square Feet: 0 Occupancy: Construction Type: Comments:9/6/22- Removing 43 protecting 10. LO Hennepin County is conducting a waste study in summer and fall of 2022 and may reach out regarding your renovation/remodeling permit to request a voluntary site visit and/or interview about your project. Please contact Valuation: 168,000.00 Fee Summary:Revenue CodeAmountDescription Building Permit Fee $1,772.00 4111 Surcharge - Based on Valuation $84.00 4380 Building Application Fee Credit ($840.00) 1495.4111 $1,016.00 Total: I have read the information contained herein and certified it to be correct. I agree to do the proposed work in accordance with the approved plans, the Edina City Code, and the Minnesota State Building Code and/or Minnesota State Fire Code. Contractor:Owner:- Applicant - France Property Partners Llc 708 5th St Se B-100 Minneapolis MN 55414 (952) 200-3680 RACHEL CONTRACTING 4125 NAPIER COURT NE ST MICHAEL MN 55376 (763) 424-1500 Applicant/Permitee: Signature Issued By: SignatureDRAFT for REVIEW 3-8-2023 Report Name: Permit Search Printed: 2/9/2023 Page: 1Permit Search Results City of Edina Permit #Permit Type Sub Type Work Type Description Issued Date Final Date House Use Dead Date Cancel Date Street Unit Valuation ePerm User 1 User 2Exp Date PID ED199392 Building Office,Ban k,Professio nal (324or437) Other Demolition (645-649) Total demolition 9/7/227250 France Ave S Business 432,000 Yes mr 3102824140015 ED199723 Sewer & Water Commercia l Sewer and Water Disconnect Disconnect for demo 8/22/22 9/2/227250 France Ave S 5,000 Yes 3102824140015 ED195091 Building Parking Garage/Ra mp (321or437) Maintenance /Repair/Repl ace Temporary Shoring to stabilize parking ramp 2/2/22 2/10/227250 France Ave S 7250 France Parking Ramp 59,694 Yes js 3102824140015 3 Permit record(s) found Total Valuation: 496,694 Building P er mit S u m m ar y January 1, 2 0 2 1 t o F e br u ar y 9, 2 0 2 3 DRAFT for REVIEW 3-8-2023 PERMIT City of Edina Permit Type: Building Permit Number: ED199392 *ED199392* Date Issued: 09/07/2022 Permit Category: ePermitSite Address: 7250 France Ave S Lot: 044 Block: 001 Addition: Oscar Roberts First Addition PID: 31-028-24-14-0015 Use: Business 4801 50th St West Edina, MN 55424 952-826-0372 www.edinamn.gov Description: Sub Type: Office,Bank,Professional (324or437) Work Type: Other Demolition (645-649) Description: Total demolition Census Code: 650 - Demolition - Entire Comm Building Zoning: Square Feet: 0 Occupancy: Construction Type: Comments:9/6/22- Removing 42 trees and protecting 10. LO Hennepin County is conducting a waste study in summer and fall of 2022 and may reach out regarding your renovation/remodeling permit to request a voluntary site visit and/or interview about your project. Please contact Valuation: 432,000.00 Fee Summary:Revenue CodeAmountDescription Building Permit Fee $3,620.00 4111 Surcharge - Based on Valuation $216.00 4380 Building Application Fee Credit ($2,160.00) 1495.4111 $1,676.00 Total: I have read the information contained herein and certified it to be correct. I agree to do the proposed work in accordance with the approved plans, the Edina City Code, and the Minnesota State Building Code and/or Minnesota State Fire Code. Contractor:Owner:- Applicant - France Property Partners Llc 708 5th St Se B-100 Minneapolis MN 55414 (952) 200-3680 RACHEL CONTRACTING 4125 NAPIER COURT NE ST MICHAEL MN 55376 (763) 424-1500 Applicant/Permitee: Signature Issued By: SignatureDRAFT for REVIEW 3-8-2023 PERMIT City of Edina Permit Type: Sewer & Water Permit Number: ED199723 *ED199723* Date Issued: 08/22/2022 Permit Category: ePermitSite Address: 7250 France Ave S Lot: 044 Block: 001 Addition: Oscar Roberts First Addition PID: 31-028-24-14-0015 Use: 4801 50th St West Edina, MN 55424 952-826-0372 www.edinamn.gov Description: Sub Type: Commercial Sewer and Water Work Type: Disconnect Description: Disconnect for demo Meter Size Meter Type Manufacturer Serial Number Remote Number Line Size Comments:Contact Edina Public Works to shut off water - 952-826-0375. It is the requirement of the permit applicant to call to schedule an inspection. Contact the Inspections Department at 952-826-0372 to schedule required inspections. APPLICATION FEE IS NON-REFUNDABLE. Valuation: 5,000.00 Fee Summary:Revenue CodeAmountDescription Residential (SW)$124.60 4116 Surcharge - Based on Valuation $2.50 4380 $127.10 Total: I have read the information contained herein and certified it to be correct. I agree to do the proposed work in accordance with the approved plans, the Edina City Code, and the Minnesota State Building Code and/or Minnesota State Fire Code. Contractor:Owner:- Applicant - France Property Partners Llc 708 5th St Se B-100 Minneapolis MN 55414 (763) 424-1504 Triple E Water And Sewer 5232 Hanson Crt N Crystal MN 55429 (763) 207-8068 St. Lic: PB710895 Applicant/Permitee: Signature Issued By: SignatureDRAFT for REVIEW 3-8-2023 PERMIT City of Edina Permit Type: Building Permit Number: ED195091 *ED195091* Date Issued: 02/02/2022 Permit Category: ePermitSite Address: 7250 France Ave S Lot: 044 Block: 001 Addition: Oscar Roberts First Addition PID: 31-028-24-14-0015 Use: 7250 France Parking Ramp 4801 50th St West Edina, MN 55424 952-826-0372 www.edinamn.gov Description: Sub Type: Parking Garage/Ramp (321or437) Work Type: Maintenance/Repair/Replace Description: Temporary Shoring to stabilize parking ramp Census Code: 321 - Parking Garage Zoning: Square Feet: 0 Occupancy:S-2 Construction Type: II-B Comments:2/1/22 JS, MN PE to sign a final inspection letter for a final approval. It is the requirement of the permit applicant to call to schedule an inspection. Contact the Inspections Department at 952-826-0372 to schedule required inspections. Valuation: 59,694.00 Fee Summary:Revenue CodeAmountDescription Building Permit Fee $922.00 4111 Plan Review Commercial $599.30 4111 Surcharge - Based on Valuation $29.85 4380 Building Application Fee Credit ($298.47) 1495.4111 $1,252.68 Total: I have read the information contained herein and certified it to be correct. I agree to do the proposed work in accordance with the approved plans, the Edina City Code, and the Minnesota State Building Code and/or Minnesota State Fire Code. Contractor:Owner: France Property Partners Llc 708 5th St Se B-100 Minneapolis MN 55414 Applicant/Permitee: Signature Issued By: SignatureDRAFT for REVIEW 3-8-2023