HomeMy WebLinkAbout2023-05-18 HRA Regular Meeting PacketAg enda
E dina H ousing and R edevelopm ent Author ity
City of E dina, Minnesota
City Hall Council Chambers
Thur sday, May 18, 2023
7:30 AM
Watch the m eeting on cable TV or at EdinaMN.gov/LiveMeeting s or
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Call 786-496-5601
E nter Conference PIN 2607053#
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I.Call to Ord er
II.Roll Call
III.Pledge of Allegia n ce
IV.Ap p roval of Meetin g Agen d a
V.Com m unity Com m en t
Du ring "Com m unity Com m en t," th e Edin a Housing and Redevelop m ent
Au thority (HRA) will in vite resid ents to sh are new issues or con cern s tha t
h aven't been con sid ered in th e p ast 30 da y s b y th e HRA or w h ich a ren't
slated for fu ture consideration . Individ u als m u st lim it their com m ents to
three m inutes. Th e Ch air m a y lim it the num ber of sp ea kers on th e sa m e
issue in th e interest of tim e a n d topic. Gen era lly sp ea king, item s tha t are
elsewhere on tod ay's a genda m a y not b e addressed d u ring Com m unity
Com m en t. In d ividua ls sh ould not expect th e Ch air or Com m issioners to
resp ond to th eir com m en ts toda y . Instead the Com m issioners m ight refer the
m atter to sta. for consideration a t a fu ture m eeting.
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 Special Meetin g April 18, 2023
B.Req u est for Purch ase: E NG 23-5 Valley View Roa d Recon stru ction
C.Approve Gra n t of Perm anen t Ea sem ents at 4100 76th Street
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.Hou sin g Im p rovem en t Area Upda te: Edin a W est
B.SPARC poten tial program s to support b u sin ess investm en t
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 pliBca 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: May 18, 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, Administrative S upport S pecialist
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:
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: May 18, 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 S pec ial Meeting April 18, 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 special meeting April 18, 2023.
I N TR O D U C TI O N:
AT TAC HME N T S:
Description
Draft Minutes April 18, 2023
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 18, 2023
IMMEDIATELY FOLLOWING THE REGULAR AGENDA
I. CALL TO ORDER
Chair Hovland called the meeting to order at 11:40 p.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. MEETING AGENDA APPROVED - AS PRESENTED
Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving the
meeting agenda as presented.
Roll call:
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
IV. COMMUNITY COMMENT
No one appeared.
V. REPORTS AND RECOMMENDATIONS
V.A. APPROVE TAX INCREMENT FINANICNG REDEVELOPMENT AGREEMENT WITH
7250 FRANCE GROUP, LLC - APPROVED
Executive Director Neal said this item pertained to the potential use of tax increment financing to
provide financial support so the developer could construct the private and public improvements at
7200 and 7250 France Avenue. A redevelopment agreement had been prepared based on the
term sheet reviewed and approved by the HRA on February 16, 2023. Staff presented a summary
of the proposed agreement that was a companion item to the one approved by Council earlier this
evening and was recommended for approval.
Motion made by Commissioner Jackson, seconded by Commissioner Pierce, to
approve the tax increment financing redevelopment agreement with 7250 France
Group, LLC, as presented.
Roll call:
Ayes: Agnew, Jackson, Pierce, and Hovland
Nays: Risser
Motion carried.
VI. EXECUTIVE DIRECTOR’S COMMENTS – Received
VII. HRA COMMISSIONER COMMENTS – Received
VIII. ADJOURNMENT
Motion made by Commissioner Jackson, seconded by Commissioner Agnew, to
adjourn the meeting at 11:47 p.m.
Roll call:
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Date: May 18, 2023 Agenda Item #: VI.B.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eques t F or P urchas e
F rom:Aaron T. Ditzler, P E, As s is tant C ity Engineer
Item Activity:
Subject:R equest for P urc hase: ENG 23-5 Valley View R oad
R econs truction
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 Request for Purchase for Valley View Road Reconstruction with S.M. Hentges & Sons Inc. for
$760,259.
I N TR O D U C TI O N:
On June 15, 2021, the C ity C ouncil approved a development project at 4040 West 70th Street. As part of the
approval, council asked staff to consider potential improvements to Valley View R oad between West 69th and
70th Streets. T his approximate location has been noted as a possible route for the West P romenade.
T he project involves reconstruction of 750 feet of municipal state aid Valley View R oad, replacement of existing
concrete curb and gutter, construction of a new 10’ concrete shared use path and localized rehabilitation of the
sanitary sewer and storm sewer systems. T he City Council approved the Valley View R oad construction contract
on May 2, 2023.
AT TAC HME N T S:
Description
Request for Purchase: ENG 23-5 Valley View Road Recons truction
ENG 23-5 Contract
1
CITY OF EDINA
4801 W 50th St., Edina, MN 55424
www.EdinaMN.gov | 952-927-8861
Requisition Number
12300056
Department: Engineering
Buyer: Aaron Ditzler
Date: 04/26/2023
Request for Purchase
Requisition Description: ENG 23-5 Valley View Road Reconstruction
Vendor: S.M. Hentges & Sons Inc.
Cost: $760,259.60
REPLACEMENT or NEW: REPLACEM - REPLACEMENT
PURCHASE SOURCE: QUOTE/BD - QUOTE/BID
DESCRIPTION:
On June 15, 2021, the City Council approved a development project at 4040 West 70th Street. As part of the
approval, council asked staff to consider potential improvements to Valley View Road between West 69th and
70th Streets. This approximate location has been noted as a possible route for the West Promenade.
The project involves reconstruction of 750 feet of municipal state aid Valley View Road, replacement of
existing concrete curb and gutter, construction of a new 10’ concrete shared use path and localized rehabilitation
of the sanitary sewer and storm sewer systems.
BUDGET IMPACT:
The improvements are listed in the 2023-2028 Capital Improvement Plan (CIP) under CIP number ENG
23037. The improvements will be funded by the HRA Fund / Centennial Lakes TIF District.
2
COMMUNITY IMPACT:
This project will provide premier, long term core service facilities and provide access and mobility for all
transportation modes while enhancing safety and convenience. It is necessary to improve the infrastructure
and comply with the City’s Living Streets Policy as well as Vision Edina’s mission statement to “provide
effective and valued public services and maintain a sound public infrastructure”.
The West Promenade, as described in the 2019 Greater Southdale District Design Experience Guidelines, is a
facility that would create a movement corridor for pedestrians and bicyclists and serve as transition space
between residential neighborhoods and the District.
ENVIRONMENTAL IMPACT:
This project involves rehabilitation of the sanitary sewer, upgrades to the storm sewer, reconstruction of
concrete curb and gutter, construction of new sidewalk, 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.
This project includes an alternative storm sewer pipe material (High-Performance Polypropylene (HP PP) vs.
reinforced concrete). It addresses sustainability by lowering our carbon footprint from manufacturing
processes, transportation and installation of the product, while also being more cost effective.
This project will reduce impervious surfaces.
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1/2015
ENG 23-5
CONTRACT NO. ENG 23-5
THIS AGREEMENT made this 18th day of May, 2023, by and between the CITY OF EDINA, a Minnesota municipal
corporation (“City”) and S.M. Hentges & Sons Inc., 650 Quaker Avenue, Jordan, MN 55352 (“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 numbers 1 and 2.
E. Specifications prepared by Aaron T. Ditzler, P.E., dated April 6, 2023.
F. Plan sheets numbered 1 to 20.
G. Performance Bond.
H. Payment Bond.
I. Responsible Contractor Verification of Compliance
J. Contractor’s Bid dated April 25, 2023.
The Contract Documents are to be read and interpreted as a whole. 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 $760,259.60.
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ENG 23-5
4. PAYMENT PROCEDURES.
A. Contractor shall submit Applications for Payment. Applications for Payment will 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 unpaid
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 shall 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 November 10, 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 the
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, methods, techniques,
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1/2015
ENG 23-5
sequences, and procedures of construction to be employed by Contractor, including any specific means,
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 any and all defects in workmanship, materials, and equipment which may 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 to 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 unenforceable under any Law or
Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding
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upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such
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 condition 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 breach
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, terms 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 continue
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 agreement(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 delay 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.
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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.
HOUSING AND REDEVELOPMENT AUTHORITY CONTRACTOR
OF EDINA
BY: ____________________________ BY: ____________________________
Its Chair Its
AND ___________________________ AND ___________________________
Its Executive Director Its
Date: May 18, 2023 Agenda Item #: VI.C .
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:C had A. Millner, P.E., Director of Engineering
Item Activity:
Subject:Approve G rant of P ermanent Easements at 4100 76th
S treet
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 Grant of P ermanent E asements at 4100 76th S treet for T he Sound D evelopment P roject.
I N TR O D U C TI O N:
A condition of approval required the owner to provide a permanent easement over the constructed trail along the
east side of the property. Staff recommends approval from both City Council and H R A.
AT TAC HME N T S:
Description
Grant of Permanent Easements
Date: May 18, 2023 Agenda Item #: VI I.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
Advisory C ommunic ation
F rom:S tephanie Hawkinson, Affordable Housing
Development Manager Item Activity:
Subject:Housing Improvement Area Update: Edina Wes t Information
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action requested.
I N TR O D U C TI O N:
On October 18, 2022 the C ity C ouncil help a work session to learn about H ousing I mprovement Areas (H I A).
S ince that time the Edina West C ondominium Association has submitted an application and P etition to establish
an H I A. O n May 2, 2023 S taff will be seeking Council authorization to hold a P ublic H earing on June 6
pertaining to the H I A application. As this is a housing activity, Staff will inform the H R A of the application and
the process.
AT TAC HME N T S:
Description
Pres entation
Housing Improvement Area
Edina West Condominiums
Housing Improvement Areas
HRA approved the HIA Policy on
May 27, 2021.
Edina West Condominium Association is
the first to apply for the establishment of
an HIA.
•Property owners repay the loan through fees
imposed on the HIA and collected as part of their
property taxes up to 20 years
-Carries same penalties and tax forfeiture process
HIA Statutory Requirements
•Owners submit petition for public hearing
•Public Hearing to approve Ordinance defining HIA
•Notice published and mailed to each owner
•Prior to adoption, an owner may file objection if property
would not benefit (determination to exclude property
made within 60 days)
•Public disclosure of project expenditures, contracting,
financing and third-party long-term ops/maintenance
plan
•Public Hearing on fee resolution
•Residents who object have a process to be heard prior
to effective dates of ordinance and resolution
What to consider for an HIA
Designation
•What improvements are needed?
•What are the costs of needed improvements?
•Have all other means of financing been
exhausted?
•Will at least 70% of owners included in the
proposed area requesting a Housing
Improvement Area designation sign a petition?
Edina West Application
•Located at 6075 Lincoln Drive
•Encompasses 4 buildings and 162 units
•Buildings are over 50-years old
•Preserves NOAH ownership housing
•Corrects building code violations
•Addresses flooding and drainage issues
•Scope created by 3rd party advisors
Edina West Application
•What improvements are needed?
Exteriors work including façade repairs,
siding replacements; site work;
mechanical repairs and insulation;
tuckpointing, waterproofing, roof
replacement, among others on four
condominium buildings.
•What are the costs of needed
improvements?
Estimated construction cost of
$4,099,431
Edina West Application
•Have all other means of financing been
exhausted?
The Developer has provided letters from three
financial institutions declining them for a loan.
One challenge is 20-year term. Another pertains
to new Fannie Mae rules about buying
condominium mortgages, and the inability to
secure the loan by multiple individual condo
owners.
•Will at least 70% of owners included in the
proposed area requesting a Housing
Improvement Area designation sign a petition?
A petition has been submitted to the City Clerk
that included 145 signatures accounting for 89.5%
of the owners.
What Types of Improvements are Eligible?
Maintenance and capital improvement repairs
which are the responsibility of the
Association (must be defined by the
governing documents)
•Windows
•Siding
•Roofing
•Parking lot resurfacing
•Common entry doors
•HVAC
•Elevators
Ineligible Improvements
Improvements that are not eligible
include items that are the responsibility
of individual homeowners
The Edina West scope of work entails
only common area improvements
HIA Checklist
Association submits Application
-Demonstration of no other funding options
-Reserve plan
Petition for Improvement Area Establishment and Fees (70% owners)
Public meeting to accept Petition and schedule hearing
Public Hearing to establish Ordinance and Resolution to set fees
-Provide list of Public Area Improvements
Public meeting on First Reading of Ordinance
Public meeting on Second Reading of Ordinance and to adopt HIA Resolution imposing fees & Ordinance to establish HIA
Mail Ordinance to all Owners included in HIA
-Mailing includes information on right to veto ordinance
Public meeting to approve Financing Development Agreement between City and Association
Public meeting to approve summary publication of Ordinance
Delivery of Financing Commitment
Edina West Scope and Estimated Request
•Siding
•Insulation
•Concrete work
•Tuckpointing
•Grading/landscaping
•Waterproofing
•Waste Tank
•Roof
•Electrical
Possible HIA
Funding Sources
Taxable General Obligation Bonds
City issues its bonds pledging its full faith and credit as additional backing if HIA fee revenue ever
proves insufficient for repayment
Advantages:
HIA property can access City’s ability to obtain low market rates and flexible terms
Does not count against statutory debt limit or election requirements
Disadvantages:
City is pledging to step in and use its own funds to make bond payments in event of tax
delinquency or forfeiture
Annual HIA Fees must provide 105% debt service coverage to avoid City levy
requirement
Credit Rating Risk
HIA: Protecting City Resources
Risk Factor: Owner objection and Veto process
HIA process requires careful review and lengthy timeline to
accomplish public steps for ordinance and hearings
Potential Mitigation
Require Association provide higher petition percentage by owners before start
(70% in Edina versus 50% as required by Statute); demonstrate commitments. To
Veto need 45% of owners.
Application fee held in escrow to cover City’s administrative costs
HIA: Protecting City Resources
Risk Factor: Project Feasibility
Bond or Loan proceeds at risk during project construction
Potential Mitigation
Review Association’s project development, scope and procurement align with City’s policy objectives and requirements.
Financing agreement:
Set terms for disbursement or require Association obtain construction financing w/ City guarantee of private loan takeout after project completion and HIA proceedings
Consider other forms of collateral or recourse (if necessary)
Consider property owner fee prepayment provisions
HIA: Protecting City Resources
Risk Factor: HIA Fee delinquency / tax forfeiture
HIA fee repayment dependent on capacity of Association property owners
Potential Mitigation
Measure project cost and annual fee payments compared to property value / income levels
Review Association’s financial reports, long-term maintenance and operating plan
Financing Agreement:
Require Association guarantees
Prepayment flexibility
HIA: Protecting City Resources
Risk Factor: HIA Administration
HIA requires ongoing administrative oversight during project completion and
length of fee repayment
Potential Mitigation
Review bond and loan administrative requirements
HIA fee established to cover City administrative costs
HIA: Protecting City Resources
Risk Factor: City’s AAA (S&P) and Aaa (Moody’s) Credit Ratings
HIA General Obligation Bonds will count against credit factors:
1. Debt load (total balance as % of tax base)
2. Leverage (total balance as % of operating revenues)
3. Debt service carrying charge (annual debt payments as % of general
expenditures)
Potential Mitigation
HIA fee set to provide 105% debt service coverage
Association will provide financial guaranty
HIA: Protecting City Resources
Next Steps and Future Requests
•June 6: Public Hearing
•Ordinance to Establish a Housing Improvement Area
•Resolution to Establish HIA Fees
•June 20: First Reading to enact Ordinance
•July 18: Second reading and adopt Ordinance, adopt fee Resolution and
approval of contingent* financing development agreement
•August 15:Approve Summary Publication of Ordinance
* Contingent upon Owner objections fewer than 45%
Date: May 18, 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:S PAR C potential programs to support busines s
inves tment
Disc ussion
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action required; for discussion purposes only.
I N TR O D U C TI O N:
I n 2021, E dina created the S PAR C program in order to guide the investment of $9.6 million dollars based on
provisions in M innesota L aw.
T his item pertains to potential programs to be implemented to support private investment, job creation and
construction improvements. D irection is requested from the H R A B oard to inform future programs. Staff intends
to incorporate this direction and return later in the year with a series of programs to apply these funds before the
2025 spending deadline.
AT TAC HME N T S:
Description
Staff Report - SPARC programs for dis cussion
Staff pres entation - SPARC programs for discus s ion
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Economic Development / HRA
Phone 952-826-0407 • Fax 952-826-0390 • www.EdinaMN.gov
Date: May 18, 2023
To: Chair and Commissioners of the Edina Housing and Redevelopment Authority
From:
Bill Neuendorf, Economic Development Manager
Re: Potential Programs to Support Business Investment with SPARC Funding
When the $9.65 million SPARC program was established in 2021, it provided Edina with a unique opportunity to
support private investment and economic growth in Edina. These funds can transform underutilized properties,
create jobs, enhance the local economy and create benefits to the general public.
The SPARC program can be a useful tool to promote the general economic development goals as described in the
1977 South East Edina Redevelopment Plan, 2015 Vision Edina and 2020 Comprehensive Plan. The SPARC program
provides a unique opportunity since Edina does not have a dedicated Economic Development Authority.
The state legislation that enabled the SPARC program allows the HRA to support private investment in several ways:
by providing improvements to the private development,
loans or interest rate subsidies to private development,
assistance in any form to the private development; or
by making an equity or similar investment in a corporation, partnership, or limited liability company
To date, the HRA has committed support for three projects that would not be viable without HRA intervention.
These are summarized below:
Committed and Available Funds
Project Description Financial
Contribution Status
Estimated
SPARC
Balance
Edina Theater
$351,000 forgivable
loan + $384,827
direct cost
Exterior pavement project complete, building
renovation complete, parking improvement
contract awarded with 2023 construction;
payment to Mann Theatres, paver contractor,
concrete contractor and design engineer pending
$8,914,000
Edina Innovation Lab $800,000 loan NTE Approved Nov 2022, funds actively being
disbursed $8,114,000
Fred 2 Apartment –
north-south roadway
access
$2,000,000 grant
Approved Dec 2022, funds reserved until
developer obtains private financing and issues Go
Ahead Letter
$6,114,000
Housing and Redevelopment Authority
Established 1974
Potential Programs for SPARC Funding
May 5, 2023
Page 2
The Southeast Edina Redevelopment Plan, Vision Edina, and the Comprehensive Plan all identify the desire to
maintain a strong business community and a strong local economy. In order to maximize the value and benefit of
the SPARC funds, staff is evaluating a variety of programs to support a variety of businesses in Edina. At this time,
three types of programs are being evaluated. Consideration is being given to establish a revolving loan fund so that
these monies can be regenerated and re-used to support other projects in the future.
Based on input from the HRA Board, these potential programs will be further refined before a funding proposal is
submitted for approval. HRA participation is only considered when necessary for the financial viability of the
project.
Potential Programs to Encourage Redevelopment and Business Investment
Targeted
Business Types Funding Limits Anticipated Outcomes Notes
New small
tenants
Grants up to 50%
of costs, not to
exceed $25,000
Must create new jobs
Energy efficient
improvements (windows,
doors, high efficiency HVAC,
solar panels)
ADA handicapped access
improvements (entry,
counters, toilets, etc)
Improvements should remain in
building for 5+ years
Intended to be simple program for
prompt payment and quick action
New small to
medium tenants
Grants or
forgivable loans up
to 50% of costs;
not to exceed
$149,000
Must create new jobs
Any construction – interior
or exterior
Preference given to spaces that have
been chronically vacant
Preference given to first-time
business owners and under-
represented businesses that provide
needed goods and services
Medium to large
tenants
Loans $500,000 +
(below-market
interest rate)
Must create new jobs
Must deliver public benefit
Any construction – interior
or exterior
Intended to establish long-term
revolving loan fund that could be
helpful for many years
Should align with outcomes in Small
Area Plans, Comp Plan or other
City Plan
Need to assess risk level
Need to determine security in case
of default
Could be deferred or partially
forgiven
Loans $500,000 +
(market-rate
interest)
Forgivable loans
$500,000 +
Equity investment
$500,000 +
Once new programs are established and approved by the HRA, the City will actively promote these programs so
that results can be seen in 2024 and 2025. Marketing efforts are anticipated to include: online promotion, outreach
to business partners, outreach to property owners and outreach to prospective businesses.
END
The CITY ofEDINAThe CITY ofEDINA
Potential programs to support
business investment with SPARC funding
-Overview for Discussion -
Edina Housing and
Redevelopment Authority
May 18, 2023
The CITY ofEDINA
Potential Programs to Encourage Redevelopment and
Business Investment in Edina
2
The 2021 state legislation that enabled the $9.6 million SPARC
program allows the HRA to support private investment that creates
jobs in several ways:
•by providing improvements to the private development,
•loans or interest rate subsidies to private development,
•assistance in any form to the private development; or
•by making an equity or similar investment in a corporation, partnership, or
limited liability company
The CITY ofEDINA
Potential Programs to Encourage Redevelopment and
Business Investment in Edina
3
$25k grants
Simple program
Small
Biz
$149k forgivable
loans
Simple program
Small
Biz Establish
permanent
Revolving Loan
Fund
Loans or equity
investments
Flexible to allow
creativity
Larger &
Unique
Projects
The CITY ofEDINA
Potential Programs to Encourage Redevelopment and
Business Investment in Edina
4
Targeted
Business Types Funding Limits Anticipated Outcomes Notes
New small
tenants
Grants up to 50% of costs,
not to exceed $25,000
•Must create new jobs
•Energy efficient improvements
(windows, doors, high
efficiency HVAC, solar panels)
•ADA handicapped access
improvements (entry,
counters, toilets, etc)
•Public health related
•Improvements should remain in
building for 5+ years
•Intended to be simple program for prompt
payment and quick action
The CITY ofEDINA
Potential Programs to Encourage Redevelopment and
Business Investment in Edina
5
Targeted
Business Types Funding Limits Anticipated Outcomes Notes
New small to
medium
tenants
Grants or forgivable loans
up to 50% of costs; not to
exceed $149,000
•Must create new jobs
•Any construction –interior or
exterior (including energy,
health, ADA and more)
•Preference given to spaces that have
been chronically vacant
•Preference given to properties that are
leased at below average rates
•Preference given to first-time
business owners and under-
represented businesses that provide
needed goods and services
The CITY ofEDINA
Potential Programs to Encourage Redevelopment and
Business Investment in Edina
6
Targeted
Business Types Funding Limits Anticipated Outcomes Notes
Medium to
large tenants
Loans $500,000 + (below-
market interest rate)
•Must create new jobs
•Must deliver public benefit
•Any construction –interior or
exterior
•Intended to establish long-term
revolving loan fund that could be
helpful for many years
•Should align with outcomes in Small
Area Plans, Comp Plan or other City
document
•Need to assess risk level
•Need to determine security in case of
default
•Could be deferred or partially forgiven
Loans $500,000 +
(market-rate interest)
Forgivable loans $500,000 +
Equity investment
$500,000 +
The CITY ofEDINA
1.Do these types of programs meet expectations?
2.Is a revolving loan fund desirable?
3.What other goals should be pursued?
4.How can these programs result in additional public benefit?
5.Any suggestions for larger or unusual investments?
www.EdinaMN.gov 7
The CITY ofEDINA
Discussion
www.EdinaMN.gov 8