Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2020-09-24 HRA Regular Meeting Packet
Agenda Edina Housing and Redevelopment Authority City of Edina, Minnesota VIRTUAL MEETING Thursday, September 24, 2020 7:30 AMTo make live testimony:800-374-0221, the conference ID number is 4184307. Watch meeting: https://www.edinamn.gov/746/Watch-a-City-Meeting or Facebook Live at https://www.facebook.com/edinamn/. I.Call to Order II.Roll Call III.Pledge of Allegiance IV.Approval of Meeting Agenda V.Community Comment During "Community Comment," the Edina Housing and Redevelopment Authority (HRA) will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the HRA or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on today's agenda may not be addressed during Community Comment. Individuals should not expect the Chair or Commissioners to respond to their comments today. Instead the Commissioners might refer the matter to sta. for consideration at a future meeting. VI.Adoption of Consent Agenda All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of Commissioners present to approve.) A.Draft Minutes of Regular Meeting September 10, 2020 B.CARES Act Sub-Recipient Grant Agreement C.Amendment to Small Business Emergency Assistance Forgivable Loans D.Approve Payment of Claims E.Resolution 2020-06: Modi:cation to 44th & France 2 Tax Increment Financing Plan VII.Correspondence A.Correspondence VIII.HRA Commissioners' Comments IX.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need assistance in the way of hearing ampli:cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: September 24, 2020 Agenda Item #: VI.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Liz Olson, Administrative Support Specialist Item Activity: Subject:Draft Minutes of Regular Meeting September 10, 2020 Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve the regular minutes of September 10, 2020. INTRODUCTION: See attached meeting minutes of September 10, 2020. ATTACHMENTS: Description Draft Minutes of Regular Meeting September 10, 2020 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY SEPTEMBER 10, 2020 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:32 a.m. and noted the meeting was being held virtually to comply with the Governor’s Stay at Home Order due to the COVID-19 pandemic then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton, and Chair Hovland. Absent: None. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED – AS PRESENTED Motion by Commissioner Anderson, seconded by Commissioner Fischer, approving the meeting agenda as presented. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. APPROVAL OF CONSENT AGENDA – AS PRESENTED VI.A. Approve minutes of July 30, 2020, Regular meeting VI.B. Amendment to Pentagon Village Tax Increment Financing Redevelopment Plan Motion by Commissioner Brindle, seconded by Commissioner Fischer, approving the consent agenda as presented. Rollcall: Ayes: Anderson, Fischer, Staunton, and Hovland Motion carried. VII. PUBLIC HEARINGS HELD – Affidavits of Notice presented and ordered placed on file. VII.A. ADOPT RESOLUTION 2020-04 AUTHORIZING THE SALE OF LAND TO THE SOUND ON 76TH LIMITED PARTNERSHIP AND APPROVE REDEVELOPMENT AGREEMENT – ADOPTED Affordable Housing Development Manager Hawkinson shared the Edina HRA purchased 4100 W. 76th Street and entered into a Purchase Agreement with 4100 Edina, LLC for sale of the property for $2,900,000. She explained that Aeon had secured financing and site plan approval to complete the development and would convey the property to The Sounds on 76th, Limited Partnership, of which 4100 Edina LLC was the General Partner. She outlined the redevelopment agreement that required the land be developed into 70 units of affordable housing and remain affordable for 40 years then shared history of well-known Flyte Time Studios who formerly occupied this site. Ms. Hawkinson shared that while important music history occurred at this studio by music producers Jimmy Jam and Terry Lewis the building was not eligible for the National Registry of Historic Places by the Minnesota State Historic Preservation Office and that Flyte Time Studios supported affordable housing at this site. She stated 17 public meetings had been held regarding this site to share the affordable housing proposal and any approvals would include the $2.4 million in gap financing and Minutes/HRA/September 10, 2020 Page 2 $798,000 in TIF financing then shared work to do to memorialize the cultural history of the building that included the name, preserved artwork, and future public art. The Commission clarified funding sources to be used for the gap financing and TIF financing. Chair Hovland opened the public hearing at 7:54 a.m. Public Testimony Steve Brown, 5528 Halifax Lane, addressed the Commission. Hope Melton, 4825 Valley View Road, addressed the Commission. Member Fischer moved to close the public hearing. Member Brindle seconded the motion. After the Commission discussed allowing additional input, Members Fischer and Brindle withdrew their motions to close the public hearing. Kristin Zschomler, 1386 Idaho Avenue W, Falcon Heights and historian in cultural research management who specialized in local history with Minneapolis Sound, addressed the Commission. Thad Lightfoot, Dorsey and Whitney, shared the State Historic Preservation Office had responded twice to the request to preserve the building then explained how it was not eligible for the national historic register and that the proposal preserved a significant amount of historic value through artwork and other methods and how the City and developer worked to go above and beyond any expectations to preserve the history at this site. Ms. Hawkinson noted the underwriter from Minnesota Housing had shared her input as well that the State Historic Preservation Office would likely not reopen the file again to consider the building’s historic significance. Member Fischer moved to close the public hearing. Member Brindle seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. The Commission spoke about additional methods to memorialize the site and how while everyone had the same interest in affordable housing there was an important story to be told about the former studio as well. They said while there would be no way to save the building and still do the project the need to understand what could be done before the building was razed was extremely important to celebrate the musical history of this site. The Commission thanked staff for the many ways already identified to memorialize the history of this site such as filming, photos, and preservation of items from Studio A where most of recordings occurred then asked if the Public Art Committee was engaged during this process for future outdoor public art. Ms. Hawkinson confirmed meetings had occurred with Edina Arts Center and Aeon and while funding would have to occur outside the project public art would occur. Member Anderson moved adoption of Resolution No. 2020-04 Authorizing the Sale of Land to The Sound on 76th, Limited Partnership and approve the Redevelopment Agreement. Member Brindle seconded the motion. Minutes/HRA/September 10, 2020 Page 3 The Commission confirmed there would still be time prior to closing to continue discussions on preservation of cultural and historical aspects of the building prior to demolition and to work to identify funding for those activities. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VIII. REPORTS/RECOMMENDATIONS VIII.A. ADOPT RESOLUTION NO. 2020-05 ADOPTING THE PRPOOSED BUDGET AND ESTABLISHING THE PROPOSED TAX LEVY PAYABLE IN 2021 – ADOPTED Mr. Neal explained the HRA was a separate taxing authority formed by the City Council and the purpose of the levy was to pay a portion of administrative expenses and other economic initiatives necessary to operate the HRA. Historically those expenses had been paid using TIF funds and to continue to reduce reliance on TIF funds the levy proposed for 2021 showed an increase from $192,000 in 2021 to $230,400. He noted adoption of the preliminary levy was required to and the final levy would be considered by the HRA in December. Motion by Commissioner Fischer, seconded by Commissioner Brindle, Resolution No. 2020-05 Adopting the Proposed Budget and Establishing the Proposed Tax Levy Payable in 2021. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. IX. CORRESPONDENCE IX.A. CORRESPONDENCE - RECEIVED Chair Hovland acknowledged the Council’s receipt of various correspondence. X. HRA COMMISSIONERS’ COMMENTS – Received XI. EXECUTIVE DIRECTOR’S COMMENTS – Received XII. ADJOURNMENT Motion made by Commissioner Fischer, seconded by Commissioner Brindle, to adjourn the meeting at 8:36 a.m. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: September 24, 2020 Agenda Item #: VI.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:CARES Act Sub-Recipient Grant Agreement Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve the Sub-Recipient Grant Agreement INTRODUCTION: This item pertains to financial support provided by the Edina HRA to provide emergency assistance to local small businesses and lower-income households due to the COVID-19 pandemic. In April 2020, the HRA provided funding to support two new programs that had not been included in the budget. The Small Business Emergency Relief Program provided $99,000 in forgivable loans to 11 small businesses. Funds have been disbursed and each business has reported that they used the funds in accordance with program rules. The Emergency Rental Assistance program provided $100,000 in grants to help maintain housing stability and prevent homelessness in Edina. This program was administered by Volunteers Enlisted to Assist People (VEAP) and the funds have been fully disbursed in accordance with program rules. The Edina HRA seeks to be reimbursed for these unanticipated expenses using federal monies provided to the City of Edina through the CARES Act. The clarification of the relationship between the Edina HRA and the City of Edina in regard to the Small Business Emergency Relief Program and Emergency Rental Assistance program will allow the desired reimbursement. This Agreement has been prepared by special financial advisors at Clifton Larson Allen LLP and reviewed by the City Attorney. This Agreement will also be presented at the next City Council meeting. Staff recommends that this Agreement be approved. ATTACHMENTS: Description Sub-Recipient Grant Agreement Sub-Recipient Grant Agreement This Agreement ("Agreement") executed and made effective this _________ day of October, 2020 by and between the City of Edina, Minnesota, a body corporate and politic of the State of Minnesota, hereinafter called "City", and the Edina Housing and Redevelopment Authority (HRA), hereinafter called the "Recipient". WHEREAS, on March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), WHEREAS, a Coronavirus Relief Fund ("CRF") has been established under the Federal Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"); and Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act, requires States, Tribal governments, or units of local governments use the funds received to cover only those costs that (1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) (2) were not accounted for in the budget most recently approved as of March 27, 2020, for the State or government and (3) were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020; WHEREAS, under the CRF, Federal monies have been allocated to the State of Minnesota ("State") which has distributed a portion of those funds to Minnesota counties for COVID-19- related expenditures; and WHEREAS, the City has received the funds allocated for expenditures; WHEREAS, the Recipient funded a Small Business Emergency Relief Program to provide temporary financial relief to Edina businesses negatively impacted by COVID-19; and WHEREAS, the Recipient funded an Emergency Rental Assistance program administered by Volunteers Enlisted to Assist People (VEAP) to help maintain housing stability and prevent homelessness; and WHEREAS, the City would like to distribute CARES Act funds to the Recipient through a sub-recipient grant relationship for allowable expenses. City of Edina and Edina HRA Sub-Recipient Grant Agreement Page 2 AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and conditions hereafter contained, the parties agree as follows: 1. The Parties agree with all of the recitals set forth above, and agree to make each of the said recital part of this agreement. 2. Recipient understands that the City will rely on the representations made in this Agreement in making payment to Recipient. 3. The funding granted to the Recipient is $199,000. 4. Recipient shall submit a report to the City documenting the expenditures incurred which meet the following criteria: a. Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) ("necessary expenditures"); b. Were not accounted for in the budget most recently approved as of March 27, 2020, for Recipient or any sub-recipients; c. Were incurred during the period that begins on March 1, 2020, and ends on November 15, 2020. 5. The Recipient acknowledges the funds may only be used for eligible costs and not used as a revenue replacement. 6. Recipient agrees that it is responsible for ensuring that all funds it receives from the City pursuant to this Agreement are used in a manner that is consistent with the CARES Act, CFDA #21.019, as well as any implementing regulations, and the federal guidance issued for State, Territorial, Local and Tribal Governments, including any amendments, clarifications or updates thereto that may be issued by the federal government or the State. 7. Recipient agrees that it is responsible for ensuring compliance with the following sections in the Uniform Administrative requirement, Cost Principles and Audit Requirements for Federal Awards (2 CFR Part 200): 2 C.F.R. § 200.303 regarding internal controls, 2 C.F.R. §200.330 through § 200.332 regarding subrecipient monitoring and management, and subpart F regarding Single Audit requirements. City of Edina and Edina HRA Sub-Recipient Grant Agreement Page 3 8. Recipient agrees to indemnify and hold harmless the City, its directors, officers and employees, for any funds it receives under this Agreement that the federal government, the State, or the City determines was not used for eligible expenditures and, therefore, must be repaid. Within 60 days of receipt of written notice and demand from the City for any such funds, Recipient shall repay such funds to the City. 9. The Recipient shall retain documentation that comports with generally accepted accounting principles of all uses of funds, including but not limited to invoices and sales receipts, until after the State has provided written notification to the City of the close and final disposition, including appeals, in any forum, of any audit or demand for payment from the federal government or the State related to any funds that are the subject of this Agreement. Such documentation shall be produced to the federal government, the State and the City promptly upon any request or made available for inspection promptly upon its request during regular business hours. 10. Funding received pursuant to this Agreement cannot be used for expenditures for which the Recipient has received any other emergency COVID-19 supplemental funding (whether state, federal, City, or private in nature) for that same expense. 11. Recipient agrees to fully cooperate with the City and State in any investigation or audit of any funds provided under this Agreement. 12. Recipient agrees that the City may set off against and apply any funds of the Recipient on deposit with, or under the control of, the City to the payment of any obligations under this Agreement, without notice and without resort to any judicial proceeding. The City may also offset any amounts due to the City under this Agreement from any other City grant or assistance to Recipient, which include but are not limited to City appropriations. 13. Recipient agrees that if it fails to provide the City with any funds as required under this Agreement, such funds shall constitute a delinquent debt owed to the City by Recipient, and that the City may seek to collect on that debt by any means allowed for under Minnesota law. 14. The laws of the State of Minnesota shall govern the interpretation and enforcement of this Agreement. 15. Neither the failure of the City to exercise any rights under this Agreement, nor any delay in the exercise of any such rights, shall operate as a waiver thereof; nor shall City of Edina and Edina HRA Sub-Recipient Grant Agreement Page 4 any single or partial exercise of any such right preclude the City from further exercising that or any other right. The remedies provided under this Agreement are cumulative and not exclusive of any remedies provided by law. 16. This Agreement and any terms and conditions expressly incorporated by reference herein embodies the whole Agreement of the parties. There are no promises, terms, conditions or obligations referring to the subject matter, other than those contained herein or incorporated herein by reference. In the event of any conflict between the terms of this Agreement and its incorporated attachment, the terms of the body of this Agreement shall control, except that all terms and conditions shall be subject to and construed to be consistent with any updated requirements, regulations, guidance or clarifications issued by the State or federal government pertaining to the use of the CRF. 17. This Agreement shall bind the respective successors and assigns of the Recipient. 18. Recipient and City shall comply with all federal, State and local laws and regulations that apply to the use of the funds that are the subject of this Agreement. 19. If any provision hereof shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid and unenforceable provision had not been contained herein. 20. This Agreement may only be amended by consent of the parties and by written agreement duly authorized and executed by authorized representatives of the Recipient and the City. 21. The Recipient identifies the following agent who is authorized to act on behalf of the Recipient for purposes of this Agreement: Edina Housing and Redevelopment Authority c/o Edina City Hall 4801 West 50th Street Edina, Minnesota 55424 Attention: Scott Neal, Executive Director 22. The City identifies the following agent who is authorized to act on behalf of the City for purposes of this Agreement: City of Edina and Edina HRA Sub-Recipient Grant Agreement Page 5 City of Edina 4801 West 50th Street Edina, Minnesota 55424 Attention: Scott Neal, City Manager 23. The Recipient and the City are both responsible for ensuring that accurate, current identification and contact information for their respective agents are provided at all times to one another under this Agreement. Any written notifications under this Agreement that are provided to email addresses provided by the Recipient and City for their respective agents, shall be deemed to have been received once provided via email to the agent's identified email address. 24. The term of this Agreement shall be from the date of execution of this Agreement as indicated herein, until the close and final disposition including any applicable appeals in any forum, of any audit or federal demand for payment from the State related to any funds that are the subject of this Agreement. The City may terminate this agreement 30 days after written notice of termination is provided to Recipient. 25. By signing hereunder, I certify that I have the authority on behalf of Recipient to make, accept, agree to and bind Recipient to the commitments, representations, requirements and terms and conditions of this Agreement, and that by signing below, I have so made, accepted, agreed to and bound Recipient to the representations, requirements and terms and conditions of this Agreement. 26. This Agreement may be executed in one or more counterparts and shall be deemed valid if delivered electronically (e.g., facsimile, PDF, ink or digital stamp, etc.), each of which will be considered an original instrument, but all of which will be considered one and the same Agreement and will become binding when one or more counterparts have been signed by each of the Parties hereto and delivered to the other. City of Edina and Edina HRA Sub-Recipient Grant Agreement Page 6 IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the parties. CITY OF EDINA, MINNESOTA By: Scott Neal City Manager EDINA HOUSING AND REDEVELOPMENT AUTHORITY By: Scott Neal Executive Director Date: September 24, 2020 Agenda Item #: VI.C. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Amendment to Small Business Emergency Assistance Forgivable Loans Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve amendments to the forgivable loan agreements to comply with federal CARES Act and authorize Executive Director to execute amendments to each borrower. INTRODUCTION: This item pertains to the Small Business Emergency Relief Program that was funded by the Edina Housing and Redevelopment Authority (HRA) in April 2020. At that time $99,000 in forgivable loans were extended to 11 small businesses. Funds were disbursed to each borrower in May 2020. Each borrower has submitted the required documents to confirm that the funds were used in accordance with program rules and in compliance with the federal CARES Act. In order to reduce the administrative and reporting burden to each of the borrowers, staff recommends that compliance be recognized and the loans forgiven. The Amendment to the original Agreement has been prepared by the City Attorney. It has also been reviewed by special financial advisors at Clifton Larson Allen LLP. Staff recommends that this form of Amendment be approved. This template will then be executed for each of the 11 loan recipients. ATTACHMENTS: Description Loan Amendment - Template Edina Small Business Emergency Assistance Forgivable Loan Agreement - Amendment & Forgiveness Page 1 211611v2 AMENDMENT TO CITY OF EDINA EDINA HOUSING AND REDEVELOPMENT AUTHORITY SMALL BUSINESS EMERGENCY ASSISTANCE FORGIVABLE LOAN AGREEMENT This amendment (“Amendment”) is made and entered into as of the ______ day of _________________, 2020, by and between _____ (“Borrower”), and the HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, a public body corporate and politic of the State of Minnesota (“Lender”). RECITALS A. On __________________________, 2020 the Borrower and Lender entered into a Small Business Emergency Assistance Forgivable Loan Agreement (“Loan Agreement”). B. The Lender has disbursed funds to the Borrower. C. The Borrower has submitted the Basic Reporting Form dated July 31, 2020 that details how the funds were used to pay for Eligible Expenses. D. The Lender has reviewed the Basic Reporting Form and determined that funds were used for Eligible Expenses. E. The Borrower and Lender want to amend the Loan Agreement to eliminate additional reporting requirements and forgive the Loan. NOW THEREFORE, in consideration of the mutual covenants hereinafter contained, it is hereby agreed as follows: 1. The Loan agreement shall remain in full force and effect except an amended herein. 2. Paragraphs 1 (a), 1 (b), 1(c) 1 (d), 1(e), 1 (f) and 1 (g) of the Loan Agreement, Basic Loan Terms, are amended to provide as follows: (a) Subject to and upon the terms and conditions of this Agreement, the Program Guidelines, and the Loan Application (together the “Loan Documents”), Lender agrees to loan to Borrower the sum of nine thousand and No/100 Dollars ($9,000.00). Proceeds of the Loan shall be disbursed for the Loan Activities approved pursuant to the Loan Documents. The Loan shall bear interest at the rate of zero percent (0%) per annum and no payments shall be due towards the principal amount of the loan unless a portion of the Loan Edina Small Business Emergency Assistance Forgivable Loan Agreement - Amendment & Forgiveness Page 2 211611v2 is not forgiven based on a breach of Subsection (e) herein. The Loan shall be forgiven by the Lender upon satisfaction by the Borrower of the terms of Subsection (e) herein. In the event that all or a portion of the Loan is not forgiven, the unforgiven portion of the Loan shall be payable based on the terms and interest rate set forth in Subsection (g) hereof. (b) Goals. Borrower agrees that it will use the Loan to pay for eligible costs incurred due to the business interruption to the Borrower due to COVID-19-related restrictions and closures; (c) Eligible Expenses. The Loan shall only be used for costs incurred due to the business interruption to the Borrower due to COVID-19-related restrictions and closures and not used as a revenue replacement. No extraordinary expenses shall be allowed without the prior authorization of the Lender. The Loan cannot be used for expenditures for which the Borrower has received any other emergency COVID-19 supplemental funding (whether state, federal, County, or private in nature) for that same expense. (d) Reporting. The Borrower shall report on the actual use of the Loan and the status of the Borrower’s business in the format prescribed by the Lender on or before October 1, 2020. (e) Loan Forgiveness: The Loan will be forgiven if borrower spends the Loan proceeds and submits evidence that the Loan was used for Eligible Expenses. (f) Completion. By October 1, 2020 Lender will determine, in its sole and absolute discretion, whether Borrower has fully and timely complied with the requirements of this Section. Borrower will promptly provide all such documentation as Lender reasonably requests in Lender’s effort to determine whether Borrower has fully and timely complied with the requirements of this Section. The date upon which Lender gives Borrower written notice of its determination of Borrower’s compliance with the requirements of this Section is the “Determination Date”. If Borrower has timely and completely complied with all the requirements of this Section, as strictly interpreted, Lender will forgive all outstanding principal and interest due and owning pursuant to the Loan as of the Determination Date. (g) Loan Repayment. If the business is in default because it provided false information in its Loan Application or July 31, 2020 Status Report, the business shall repay the full principal of the Loan within thirty (30) days of notice from the Lender. 3. Exhibit A Forms of Reports is deleted. Edina Small Business Emergency Assistance Forgivable Loan Agreement - Amendment & Forgiveness Page 3 211611v2 IN TESTIMONY WHEREOF, each of the parties hereto has caused these presents to be effective as of the day and year first above written. BORROWER: (full business name) By: (owner name) Its: (title) HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA By: Scott Neal Its: Executive Director Date: September 24, 2020 Agenda Item #: VI.D. To:Chair & Commissioners of the Edina HRA Item Type: Claims From:Don Uram, Finance Director Item Activity: Subject:Approve Payment of Claims Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Motion to approve payment of claims for HRA Check Register 07.30.20-09.17.20 TOTAL $120,635.50. INTRODUCTION: Payment of claims are attached. ATTACHMENTS: Description HRA Check Register 07.30.20-09.17.20 TOTAL $120,635.50 9/18/2020CITY OF EDINA 8:22:35R55CKS2LOGIS600V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 9/17/20207/30/2020 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 450936 7/30/2020 100730 DORSEY & WHITNEY LLP 09243 126131155.00 9243NOLAN MAINS - TIF LEGAL C OF C 529107 3592006 PROFESSIONAL SERV - LEGAL 50TH AND FRANCE 2 TIF DIS 09240 1261311,705.00 9240PENT VILL - TIF LEGAL 529108 3592150 PROFESSIONAL SERV - LEGAL PENTAGON PARK DISTRICT 09238 146131987.50 9238SANDELL - TIF LEGAL 529109 3592152 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09238 1461315,127.50 9238AEON - TIF LEGAL 529178 3592151 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 7,975.00 450940 7/30/2020 100049 EHLERS & ASSOCIATES INC. 09242 1261361,582.50 9242GRANDVIEW TIF BOND ANALYSIS 529058 83959 PROFESSIONAL SVC - OTHER GRANDVIEW 2 TIF DISTRICT 09248 1261031,088.75 9248TIF ANALYSIS 529091 83890 PROFESSIONAL SERVICES WEST 76TH STREET TIF DIST 09240 126136486.25 9240PENT VILL - TIF REVIEW 529161 83986 PROFESSIONAL SVC - OTHER PENTAGON PARK DISTRICT 3,157.50 451046 7/30/2020 120155 SOUTHVIEW DESIGN 09210 1461021,991.52 9210NORTH RAMP - LANDSCAPE 529177 11742 CONTRACTUAL SERVICES HRA ADMINISTRATION 1,991.52 451321 8/13/2020 100664 BRAUN INTERTEC 09232 146710470.50 9232NORTH RAMP - ENVIRONMENTAL 530243 B219395 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 470.50 451609 8/20/2020 100049 EHLERS & ASSOCIATES INC. 09232 1461032,500.00 92322019 TIF REPORTS 530884 84370 PROFESSIONAL SERVICES CENTENNIAL TIF DISTRICT 09232 146136540.00 9232NORTH RAMP TIF 530885 82806 PROFESSIONAL SVC - OTHER CENTENNIAL TIF DISTRICT 09247 1261031,140.00 9247AMUNDSON TIF WORK 530917 84168 PROFESSIONAL SERVICES 70TH AND AMUNDSON TIF DIS 4,180.00 451623 8/20/2020 101503 HENNEPIN COUNTY PROPERTY TAX 09238 14671047,833.53 9238TAXES FOR AEON SITE 530953 31-028-24 41 0010-MAY EQUIPMENT REPLACEMENT SOUTHDALE 2 TIF DISTRICT 47,833.53 451804 8/28/2020 146781 DEED 09210 14206631,250.00 9210PENTAGON SOUTH - DEED ESCROW 531699 00000622048 ESCROW DEPOSITS HRA ADMINISTRATION 31,250.00 451807 8/28/2020 100730 DORSEY & WHITNEY LLP 09210 1420661,157.50 92104500 FRANCE TIF ESCROW 531551 3599361 ESCROW DEPOSITS HRA ADMINISTRATION 09210 1420664,335.00 9210PENT VILL - TIF LEGAL ESCROW 531552 3599359 ESCROW DEPOSITS HRA ADMINISTRATION 5,492.50 451869 8/28/2020 146951 MIDWEST ART CONSERVATION CENTER 09248 1261038,490.00 9248ART PRESERVATION 531399 16481 PROFESSIONAL SERVICES WEST 76TH STREET TIF DIST 8,490.00 451938 8/28/2020 113490 STERLING FENCE INC. 09232 1467101,807.00 9232NORTH RAMP - GATE 531553 25141 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 9/18/2020CITY OF EDINA 8:22:35R55CKS2LOGIS600V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 9/17/20207/30/2020 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 1,807.00 451951 8/28/2020 123129 TIMESAVER OFF SITE SECRETARIAL INC. 09210 146136148.00 92107/30 HRA MINUTES 531540 M25627-1 PROFESSIONAL SVC - OTHER HRA ADMINISTRATION 148.00 451968 8/28/2020 131648 WENCK ASSOCIATES INC. 09248 1261034,202.45 92484100 ABATEMENT OVERSIGHT 531347 12005374 PROFESSIONAL SERVICES WEST 76TH STREET TIF DIST 4,202.45 452192 9/10/2020 100730 DORSEY & WHITNEY LLP 09248 1261033,467.50 92484100 LEGAL 532424 3599360 PROFESSIONAL SERVICES WEST 76TH STREET TIF DIST 09247 126103170.00 9247AMUNDSON LEGAL WORK 532425 3599363 PROFESSIONAL SERVICES 70TH AND AMUNDSON TIF DIS 3,637.50 Report Totals 120,635.50 Date: September 24, 2020 Agenda Item #: VI.E. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Resolution 2020-06: Modification to 44th & France 2 Tax Increment Financing Plan Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve Resolution 2020-06 and the modified Tax Increment Financing P lan. Also approve the second amendment to Redevelopment Agreement with Orion 4500 France, LLC. INTRODUCTION: This item pertains to the 44th & France 2 Tax Increment Financing (TIF) Plan and the Redevelopment Agreement with Orion 4500 France, LLC. A minor modification to the TIF Plan is necessary to recognize a change in the boundary of the TIF District. This change is due to the donation of a small portion of the property to the adjacent neighbor. This donation will ensure that the neighbor has full access to their private driveway. Prior to the construction, the neighbor shared a driveway. This boundary change is also recognized in the 2nd Amendment to the Redevelopment Agreement. This amendment also clarifies the timing by which the developer must provide a final site plat. The procedure to complete the plat has been delayed by Hennepin County due to the COVID-19 pandemic. The Resolution, modified TIF Plan and Amendment have been prepared by Ehlers Associates with legal review by Dorsey & Whitney. The amendment will also be presented to the City Council at the October 6, 2020 meeting. Staff recommends approval of the Resolution, the modified TIF Plan and the Amendment to the Redevelopment Agreement. ATTACHMENTS: Description Resolution 2020-06 44 France 2 TIF Plan 2nd Amendment to Agreement memorandum partial release of Agreement EDINA HOUSING AND REDEVELOPMENT AUTHORITY CITY OF EDINA HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2020-06 AUTHORIZING REMOVAL AND DECERTIFICATION OF PROPERTY FROM THE 44TH AND FRANCE 2 TAX INCREMENT FINANCING DISTRICT LOCATED WITHIN THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA. It is hereby resolved by the Board of Commissioners (the "Board") of the Edina Housing and Redevelopment Authority (the "HRA") as follows: 1. Recitals. a. The HRA has heretofore established the Southeast Edina Redevelopment Project Area and adopted the Redevelopment Plan therefor and established therein the 44th and France 2 Tax Increment Financing District (the “TIF District”) and adopted a Tax Increment Financing Plan (the “Plan”) therefor. b. The HRA is the administrative authority for the TIF District. c. Orion 4500 France, LLC as developer of the property within the TIF District has submitted a request to adjust the lot line of Parcel No. 0702824440070 within the TIF District to remove the property described in Exhibit A (the “Release Parcel”) and convey it to a neighboring property outside of the TIF District. d. The HRA proposes to have the Release Parcel removed from the TIF District. e. It has been proposed that the HRA modify the Plan (the “Plan Modification”) for the TIF District all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.174 through 469.179 (the “Act”), all inclusive, as amended, all as reflected herein, and presented for the Board’s consideration. Generally, the substantive changes to the Plan include an administrative modification to clarify the removal of the Release Paracel from the property to be included in the TIF District. The purposed of this Plan Modification is to ensure the map and the description of the property to be included in the TIF District is accurately recorded in the appendices of the Plan. f. The HRA has determined that the current net tax capacity of the Release Parcel proposed to be eliminated from the TIF District exceeds the original net tax capacity of the Release Parcel as originally certified. g. The HRA has performed all actions required by law to be performed prior to the adoption and approval of the proposed Plan Modification. Because of the nature of this Plan Modification, and because this Plan Modification does not entail an enlargement of geographic area, an increase in the amount of bonded indebtedness, an increase to the amount of interest on debt, an increase in the portion of the captured net tax capacity, or an increase in the total estimated tax increment expenditures, this Plan Modification is not subject to a public hearing requirement. 2. The HRA hereby reaffirms the original findings for the TIF District, namely: that the TIF District is in the public interest and is a “renewal and renovation district” under Minnesota Statutes, Section 469.174, Subd. 10a. 3. Decertification and Removal of Property. The HRA hereby approves and directs that the Release Parcel be removed and decertified from the TIF District. The HRA Executive Director is directed (a) to request in writing that the Hennepin County Auditor decertify said Property from the TIF District in accordance with the provisions of this Resolution and (b) to provide the County Auditor with a certified copy hereof. Approved by the Board on September 24, 2020. _______________________________ James Hovland, Chair ATTEST: __________________________ Michael A. Fischer, Secretary EXHIBIT A DESCRIPTION OF RELEASE PARCEL That part of Lot 8, Block 2, Fairbairn's Rearrangement in Waveland & Waveland Park, Hennepin County, Minnesota described as commencing at the most westerly corner of said Lot 8; thence on an assumed bearing of North 47 degrees 35 minutes 29 seconds East, along the northerly line of said Lot 8, a distance of 12.00 feet; thence South 33 degrees 43 minutes 44 seconds East, parallel with the west line of said Lot 8, a distance of 75.00 feet; thence South 47 degrees 35 minutes 29 seconds West, parallel with said northerly line of Lot 8, a distance of 12.00 feet, to said west line of Lot 8; thence North 33 degrees 43 minutes 44 seconds West, along said west line of Lot 8, a distance of 75.00 feet to the point of beginning. MODIFICATION TO THE REDEVELOPMENT PLAN Southeast Edina Redevelopment Project Area - AND - MODIFICATION TO THE TAX INCREMENT FINANCING PLAN 44th and France 2 Tax Increment Financing District (a renewal and renovation district) Edina Housing and Redevelopment Authority City of Edina, Hennepin County, Minnesota Adopted: October 16, 2018 Modification #1: September 24, 2020 Introduction – Modification #1 The purpose of Modification #1 to the Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District is to remove a portion of a parcel from the TIF District that is intended to be conveyed to a neighboring property outside the TIF District. The specific modifications have been inserted into the original Tax Increment Financing Plan and are summarized below: Section 1 – annotate the date and action taken for Modification #1 within the timeline of events for the Southeast Edina Redevelopment Project Area Section 2 – insert within specific subsections and appendices of the Tax Increment Financing Plan as follows: Subsection 2-3. Statement of Objectives The District is being modified in order to remove property and decertify it from the District. Because the current net tax capacity of the property proposed to be removed is higher than the original net tax capacity as certified, the modification does not need to undergo the public hearing process pursuant to M.S. Section 469.175, Subd. 4. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District is being modified in order to remove property and decertify it from the District. The property description for the portion of the parcel to be removed is included within Appendix C of this TIF Plan and an updated map of the District is included in Appendix B. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions There are no additional fiscal impacts anticipated with Modification #1 of this TIF Plan. Subsection 2-17. Modifications to the District The District is being modified in order to remove property and decertify it from the District. The HRA finds that the current net tax capacity of the parcel in which the property is proposed to be eliminated from the District exceeds the original net tax capacity of the parcel. Therefore, Modification #1 does not require a public hearing or additional findings pursuant to this subsection. Appendix B – inserted modified Map of the 44th and France 2 TIF District Appendix C – Description of Property to be Included in the District Parcel number 0702824440070 is identified as undergoing a lot split to remove a portion of property from the District. The legal description of the portion of the property to be removed has been inserted. Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area.. . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Foreword.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4 Section 2 - Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District. . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-1. Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-2. Statutory Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-3. Statement of Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-4. Redevelopment Plan Overview.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . . 2-2 Subsection 2-6. Classification of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District.. . . . . . . . . . . 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements. . . . . . . . . . . . . . . . 2-4 Subsection 2-9. Sources of Revenue/Bonds to be Issued. . . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2-10. Uses of Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6 Subsection 2-11. Fiscal Disparities Election.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7 Subsection 2-12. Business Subsidies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8 Subsection 2-13. County Road Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions.. . . . . . . . . . . . . . . . . 2-9 Subsection 2-15. Supporting Documentation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-16. Definition of Tax Increment Revenues. . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-17. Modifications to the District.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12 Subsection 2-18. Administrative Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-19. Limitation of Increment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13 Subsection 2-20. Use of Tax Increment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14 Subsection 2-21. Excess Increments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-15 Subsection 2-22. Requirements for Agreements with the Developer. . . . . . . . . . . . . . . 2-15 Subsection 2-23. Assessment Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-15 Subsection 2-24. Administration of the District.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-16 Subsection 2-25. Annual Disclosure Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-16 Subsection 2-26. Reasonable Expectations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-16 Subsection 2-27. Other Limitations on the Use of Tax Increment. . . . . . . . . . . . . . . . . 2-16 Subsection 2-28. Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-17 Appendix A Project Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Appendix B Map of the Southeast Edina Redevelopment Project Area and the 44th and France 2 TIF District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1 Appendix C Description of Property to be Included in the District.. . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1 Appendix D Estimated Cash Flow for the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1 Appendix E Minnesota Business Assistance Form.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1 Appendix F Renewal and Renovation Qualifications for the District. . . . . . . . . . . . . . . . . . . . . . . . . . . F-1 Appendix G Findings Including But/For Qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-1 Section 1 - Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area Foreword The following text represents a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. Generally, the substantive changes include the establishment of the 44th 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, Section469.001 to 469.047. The original and amended Southeast Edina Redevelopment Plan documents and amendments have designatedthe Southeast Edina Redevelopment Plan as a redevelopment project and also a tax increment financing planfor tax increment districts created prior to 1988. The Centennial Lakes Tax Increment Financing District wascreated in 1988 pursuant to Tax Increment Financing Plan 88-1, which was subsequently renamed theCentennial 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 theSoutheast Edina Redevelopment Project Area Plan pursuant to Minnesota Statutes 469.002. The followingmunicipal 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. May 6, 1985: The HRA and the City approved an amendment to the Southeast Edina Redevelopment Project Area Plan which includes the establishment of an interest reduction program and enlarges the project area to include the “1985 Project Area.” August 19, 1985: The HRA and the City approve d the First Amendment to the 1985 Amendment to the Southeast Edina Redevelopment Project Area Plan to enlarge the 1985 Project Area and to 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 toenlarge the project area to include the 1987 Project Area. 1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan thatprovide an Interest Reduction Program in the amount of $2,500,000 to assist in the financing andconstruction of housing units, and authorize the HRA and City to incur bonded indebtedness. February 21, 2012: The HRA and City expand the Southeast Edina Project Area. Edina Housing and Redevelopment Authority Modification to the Redevelopment Plan forthe Southeast Edina Redevelopment Project Area 1-4 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 TaxIncrement 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 legislation pooling authority for affordable housing. November 20, 2018: The HRA and City 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. December 17, 2019: THE HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to designate additional property to be aquired and establish the AmundsonAvenue Tax Increment Financing District. (AS MODIFIED September 24, 2020) September 24, 2020: The HRA proposes to modify the 44th and France 2 Tax Increment Financing District to remove property and decertify it from the district. For further information, a review of the Redevelopment Plan for the Southeast Edina Redevelopment ProjectArea 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 the Southeast Edina Redevelopment Project Area. Edina Housing and Redevelopment Authority Modification to the Redevelopment Plan forthe Southeast Edina Redevelopment Project Area 1-5 Section 2 - Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District Subsection 2-1. Foreword The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina (the "City"), staff andconsultants have prepared the following information to establish the 44th and France 2 Tax IncrementFinancing District (the "District"), a renewal and renovation tax increment financing district, located in theSoutheast Edina Redevelopment Project Area. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development orredevelopment to occur or to promote a greater degree of development that allows City objectives to befulfilled. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.001 to 469.047, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "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 the Southeast Edina Redevelopment Project Area, originally adopted September 29, 1977, and modified from time to time. Subsection 2-3. Statement of Objectives The District currently consists of five parcels of land and adjacent and internal rights-of-way. As a part of the City’s vision for the 44th and France Commercial Area, the District is being created to facilitate the redevelopment of underutilized, vacant, and obsolete structures to facilitate construction of approximately 46 new housing units and 7,000 square feet of street level commercial space in the City. Please see AppendixA for further District information. The HRA is considering an agreement with Orion Investments as thedeveloper at the time of preparation of the TIF Plan. Redevelopment activities are proposed to begin in 2018with substantial completion by 2020. This TIF Plan is expected to achieve many of the objectives outlinedin the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not precludethe undertaking of other qualified development or redevelopment activities. These activities are anticipatedto occur over the life of the Southeast Edina Redevelopment Project Area and the District. (AS MODIFIED September 24, 2020) The District is being modified in order to remove property and decertify it from the District. Because the current net tax capacity of the property proposed to be removed is higher than the original net tax capacity as certified, the modification does not need to undergo the public hearing process pursuant to M.S., Section 469.175, Sudb. 4. Subsection 2-4. Redevelopment Plan Overview Pursuant to the Redevelopment Plan and authorizing state statutes, the HRA or City is authorized to undertake the following activities within the District: Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-1 1. Property to be Acquired - Selected property located within the District may be acquired bythe 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 necessarylegal requirements, the HRA or City may sell to a developer selected properties that it mayacquire 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. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. (AS MODIFIED September 24, 2020) The District is being modified in order to remove property and decertify it from the District. The property description for the portion of the parcel to be removed is included within Appendix C of this TIF Plan and an updated map of the District is included in Appendix B. The City may acquire any parcel within the District including interior and adjacent street rights of way. Anyproperties identified for acquisition will be acquired by the City only in order to accomplish one or more ofthe following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carryout land acquisition, site improvements, clearance and/or development to accomplish the uses and objectivesset forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchasefrom willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertakenonly when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The HRA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, find that the District, to be established, is arenewal and renovation district pursuant to M.S., Section 469.174, Subd. 10a as defined below: (a) "Renewal and renovation district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that: (1) (i) parcels consisting of 70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures; (ii) 20 percent of the buildings are structurally substandard; and Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-2 (iii)30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or otheridentified hazards to the health, safety, and general well-being of the community; and (2) The conditions described in clause (1) are reasonably distributed throughout the geographic area of the district. (b) For purposes of determining whether a building is structurally substandard, whether parcels are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures, or whether noncontiguous areas qualify, the provisions of subdivision 10, paragraphs (b) through (f) apply. M.S., Section 469.174, Subd. 10(b) through (f): (b) 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. (c) 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 structurally substandard. (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvement described in paragraph (e) if all of the following conditions are met: (1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-3 (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirement of paragraph (e) and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by § 469.177, subdivision 1, paragraph (f). M.S., Section 469.174, Subd. 10(a)(1) continued: (e) 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. (f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the HRA and City rely on the following facts and findings: • The District is a renewal and renovation district consisting of five parcels. • An inventory shows that parcels consisting of more than 70 percent of the area in the District areoccupied 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 20 percent of the buildingsare structurally substandard as defined in the TIF Act. (See Appendix F).• An inspection of the buildings located within the District finds that more than 30 percent of the buildingsrequire substantial renovation or clearance to remove existing conditions such as defined in the TIF Act.(See Appendix F) Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel thatqualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxespayable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of taxincrement 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 15 years after receipt of the first increment by the HRA or City (a totalof 16 years of tax increment collection). The HRA or City elects to receive the first tax increment in 2021,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 2036, or when the TIF Plan is satisfied. The HRA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-4 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 assessorin 2018 for taxes payable 2019. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginningin the payment year 2021) 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 2019, assuming the request for certification is made before June 30, 2019. The ONTC and estimate of 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 the Southeast Edina Redevelopment Project Area,upon completion of the projects within the District, will annually approximate tax increment revenues asshown in the table below. The HRA and City request 100 percent of the available increase in tax capacityfor repayment of its obligations and current expenditures, beginning in the tax year payable 2021. TheProject Tax Capacity (PTC) listed is an estimate of values when the projects within the District arecompleted. Project Estimated Tax Capacity upon Completion (PTC)$299,297 Original Estimated Net Tax Capacity (ONTC)$28,800 Fiscal Disparities Contribution $22,301 Estimated Captured Tax Capacity (CTC)$248,196 Original Local Tax Rate 1.12296 Pay 2018 Estimated Annual Tax Increment (CTC x Local Tax Rate) $278,714 Percent Retained by the HRA 100% Tax capacity includes a 1% inflation factor for the duration of the District. The tax capacity included in thischart is the estimated tax capacity of the District in year 16. The tax capacity of the District in year one isestimated to be $56,875. 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 Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-5 the original net tax capacity of the District by the net tax capacity of improvements for which a buildingpermit was issued. The City has reviewed the area to be included in the District and determined no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Budgeted Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are calculated in Appendix D and are shown inthe table below: SOURCES OF FUNDS TOTAL Tax Increment $3,890,260 Interest $194,513 TOTAL $4,084,773 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 to help achieve the objectives of the TIF Plan. As currently proposed, the projects within the District will be financed by a pay- as-you-go note issued to reimburse the Developer for the funding of qualified redevelopment costs. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. 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 incrementsfrom the District in a maximum principal amount of $2,884,407. 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 totalbonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval.Further information can be found in Appendix D. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the redevelopment and constructionof approximately 46 housing units and 7,000 square feet of commercial space. The HRA and City havedetermined that it will be necessary to provide assistance to the project(s) for certain District costs, asdescribed. The HRA has studied the feasibility of the development or redevelopment of property in and around theDistrict. To facilitate the establishment and development or redevelopment of the District, this TIF Planauthorizes 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 table below. These estimates establish the maximum amount permitted to be expended, but the City/HRA is not obligated to expend this full amount. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-6 USES OF TAX INCREMENT FUNDS TOTAL Site Improvements/Preparation $959,000 Utilities $723,000 Construction of Affordable Housing $194,513 Other Qualifying Improvements $813,381 Administrative Costs (up to 10%)$194,513 PROJECT COST TOTAL $2,884,407 Interest $1,200,366 PROJECT AND INTEREST COSTS TOTAL $4,084,773 The total project cost, including financing costs (interest) listed in the table above does not exceed the totalprojected tax increments for the District as shown in Subsection 2-9. Estimated costs associated with the District are subject to change among categories without a modificationto this TIF Plan as permitted by M.S. Section 469.175, Subd. 4. The cost of all activities to be considered fortax increment financing will not exceed, without formal modification, the budget above pursuant to theapplicable statutory requirements. Pursuant to M.S., Section 469.1763, Subd. 2, no more than 20 percent ofthe tax increment paid by property within the District will be spent on activities related to development orredevelopment outside of the District but within the boundaries of the 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 this 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). Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-7 authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The city chooses to calculate fiscal disparities by clause b. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies M.S. Section 116J.993 to 116J.995 defines a business subsidy as a “grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease or other obligation, or any preferential use of government facilities given to a business.” Also included in the definition are many forms of economic assistance. Some forms of assistance, such as tax increment for redevelopment and housing, are specifically excluded from business subsidy requirements. Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-8 (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The HRA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the HRA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction ofroad improvements or other road costs and if the road improvements are not scheduled within the next fiveyears under a capital improvement plan or within five years under another county plan. The county roads in the vicinity of the District include France Avenue (County Road 17). The HRA and theCity are aware that the county could claim that tax increment should be used for county roads, even after thepublic hearing. If the county elects to use increments to improve county roads, it must notify the HRA or Citywithin forty-five days of receipt of the TIF Plan submitted September 14, 2018. In the opinion of the HRA,City and consultants, the proposed development outlined in this TIF Plan will have little or no impact uponcounty roads. Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIFPlan would occur without the creation of the District. However, the HRA or City has determined that suchdevelopment or redevelopment would not occur "but for" tax increment financing and that, therefore, thefiscal 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: Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-9 IMPACT ON TAX BASE IF “BUT FOR” NOT MET 2017/Pay 2018 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,685,924,784 248,196 0.0147% City of Edina 125,242,169 248,196 0.1982% Edina Independent SchoolDistrict ISD No. 273 103,546,097 248,196 0.2397% IMPACT ON TAX RATES IF “BUT FOR” NOT MET Pay 2018 Extension Rates Percent of Total Rate CTC Potential Annual Taxes Hennepin County 0.428080 38.12% 248,196 106,248 City of Edina 0.278490 24.80% 248,196 69,120 Edina Independent SchoolDistrict ISD No. 273 0.309720 27.58% 248,196 76,871 Other 0.106670 9.50% 248,196 26,475 Total 1.122960 100.00%278,714 The estimates listed above display the captured tax capacity (CTC) when all construction anticipated in Appendix A is completed. The tax rate used for calculations is the actual Pay 2018 rate as obtained from Hennepin County. The total net capacity for the entities listed above are based on actual Pay 2018 figures. The District will be certified under the actual Pay 2019 rates, which were unavailable at the time this TIFPlan was prepared, assuming the request for certification is made prior to June 30, 2019. 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 begenerated over the life of the District is $3,890,260; (2) Probable impact of the District on city provided services and ability to issue debt. Based upon inputfrom the Edina Police Department, an impact of the District on police protection is not expected. TheCity Police Department does track all calls for service including property-type calls and crimes. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment. Based upon input from the Edina Fire Department, the probable impact of the District on fire protection is not expected to be significant. The City expects some increased costs of inspections and that the development will generate a minor increase in EMS calls, depending on the occupancy mix of the residential units. Typically new buildings compliant with building and fire codes generate few fire calls, if any, and are of superior construction beneficial to the mission of the Fire Department. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-10 Based upon input from the Edina Engineering Department, the impact of the District on publicinfrastructure is expected to be minimal. The redevelopment is not expected to require additionalpublic infrastructure to address its impact to traffic movement in the area. The current infrastructurefor sanitary sewer, storm sewer and water will be able to handle the additional volume generatedfrom the proposed development. Based on the development plans, costs associated with streetmaintenance, sweeping, plowing, lighting and sidewalks are expected to be neutral. Theredevelopment in the District is expected to contribute an estimated $323,516 in sanitary sewer(SAC) and water (WAC) connection fees. It is not anticipated that there will be any general obligation debt issued in relation to this District, therefore there will be no impact on the City’s ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. M.S. Section 469.175 Subd. 2 (b) requires the TIF Plan to calculate “the estimated 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 a taxing jurisdictions remained the same.” 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 $1,072,934. The amount is calculated by multiplying the total estimated increment of $3,890,260 by the percent of the total tax rate attributable to the school district based on its Pay 2018 tax rate of 27.58% (4) Estimated amount of tax increment attributable to county levies. M.S., Section 469.175 Subd. 2(b)requires the TIF Plan to calculate “the estimated 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.” The amount of tax increments over the lifeof the District that would be attributable to county levies, assuming the county's share of the totallocal tax rate for all taxing jurisdictions remained the same, is $1,482,967. The amount is calculatedby multiplying the total estimated increment of $3,890,260 by the percent of the total tax rateattributable to the county based on its Pay 2018 tax rate of 38.12%; (5) Additional information requested by the county or school district. The City is not aware of anystandard questions in a county or school district written policy regarding tax increment districts andimpact 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. No requests for additional information from the county or school district regarding the proposed redevelopment for the District have been received. (AS MODIFIED September 24, 2020) There are no additional fiscal impacts anticipated with Modification #1 of this TIF Plan. Subsection 2-15. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the 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 that are required in the resolution approving the District. Following is a list Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-11 of reports and studies on file at the City that support the HRA and City's findings: • Traffic Impact Study: 4500 France Apartments. Sprack Consulting. June, 2018.• Renewal and Renovation TIF Qualifications Report. Stantec, 2018.• Small Area Plan for the City of Edina’s 44th & France Neighborhood Node, 2018.• France Avenue Apartments Site Plan, 2018. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financingdistrict include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; 3. Principal and interest received on loans or other advances made by the authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the HRA or City; 5. Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the HRA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approvalof the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shallnot be enlarged after five years following the date of certification of the original net tax capacity by thecounty auditor. If a renewal and renovation district is enlarged, the reasons and supporting facts for thedetermination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 10a, must bedocumented in writing and retained. The requirements of this paragraph do not apply if (1) the onlymodification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of theparcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District'soriginal net tax capacity or (B) the HRA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-12 The HRA or City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. (AS MODIFIED September 24, 2020) The District is being modified in order to remove property and decertify it from the District. The HRA finds that the current net tax capacity of the parcel in which the property is proposed to be eliminated from the District exceeds the original net tax capacity of the parcel. Therefore, Modification #1 does not require a public hearing or additional findings pursuant to this subsection. Subsection 2-18. Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the HRA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). Administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants,and planning or economic development consultants. For districts for which certification was requested after July 31, 2001, pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently 0.36percent) of any increment distributed to the HRA or City and the County Treasurer shall pay the amountdeducted to the State Commissioner of Management and Budget for deposit in the state general fund to beappropriated to the State Auditor for the cost of financial reporting of tax increment financing informationand the cost of examining and auditing authorities' use of tax increment financing. This amount may beadjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-13 may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or otherescrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturityor redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The HRA or City or a property owner must improve parcels within the District by approximately June 2023and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxableproperty located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project;2. To finance, or otherwise pay public redevelopment costs of the the Southeast Edina RedevelopmentProject Area pursuant to M.S., Sections 469.001 to 469.047;3. To pay for project costs as identified in the budget set forth in the TIF Plan;4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4;5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the HRA or City or for the benefit of the Southeast Edina Redevelopment Project Area by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-14 These revenues shall not be used to circumvent any levy limitations applicable to the City nor for otherpurposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the HRA for the Tax IncrementFund of said District. The HRA or City will pay to the developer(s) annually an amount not to exceed anamount as specified in a developer's agreement to reimburse the costs of land acquisition, publicimprovements, demolition and relocation, site preparation, other qualifying improvements, andadministration. Remaining increment funds will be used for HRA or City administration (up to 10 percent)and for the costs of public improvement activities or qualifying affordable housing outside the District. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of thefollowing: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. Pursuant to M.S., Section 469.176, Subd. 2, “The authority shall annually determine the amount of excess increments for a district, if any. This determination must be based on the tax increment financing plan in effect on December 31 of the year and the increment and other revenues received as of December 31 of the year. The authority must spend or return the excess increments under paragraph (c) within nine months after the end of the year.” In addition, the HRA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Southeast Edina Redevelopment Project Area or the District. Subsection 2-22. Requirements for Agreements with the Developer The HRA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, andelectrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and anyother drawings or narrative deemed necessary by the HRA or City to demonstrate the conformance of thedevelopment with City plans and ordinances. The HRA or City may also use the Agreements to addressother issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to beacquired in the project area as set forth in the TIF Plan shall at any time be owned by the HRA or City as aresult of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which taxincrements from property acquired is pledged, unless prior to acquisition in excess of 25 percent of theacreage, the HRA or City concluded an agreement for the development or redevelopment of the propertyacquired and which provides recourse for the HRA or City should the development or redevelopment not becompleted. Subsection 2-23. Assessment Agreements Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-15 Pursuant to M.S., Section 469.177, Subd. 8, the HRA or City may enter into a written assessment agreementin recordable form with the developer of property within the District which establishes a minimum marketvalue of the land and completed improvements for the duration of the District. The assessment agreementshall be presented to the County Assessor who shall review the plans and specifications for the improvementsto be constructed, review the market value previously assigned to the land upon which the improvements areto be constructed and, so long as the minimum market value contained in the assessment agreement appears,in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify theminimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the HRA Executive Director. Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the HRA or City must undertake financial reportingfor all tax increment financing districts to the Office of the State Auditor, County Board and County Auditoron or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statementshall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development 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 the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon HRA and City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047. Taxincrements may not be used to circumvent existing levy limit law. No tax increment may be used for theacquisition, construction, renovation, operation, or maintenance of a building to be used primarily and Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-16 regularly for conducting the business of a municipality, county, school district, or any other local unitof government or the state or federal government. This provision does not prohibit the use of revenuesderived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended onactivities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to financeactivities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Notmore than 20 percent of said tax increments may be expended, through a development fund or otherwise,on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. Pursuant to M.S., Section 469.1763, Subd. 2, 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 for qualifying housing purposes. Therefore, the pooling limitations with respect to this District are increased to not more than 30 percent of tax increment from the District. 3. Five Year Limitation on Commitment of Tax Increments. Revenues derived from tax increments paid by properties in the District shall be deemed to have satisfied the percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 70 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. 4. Renewal and Rennovation District. At least 90 percent of the revenues derived from tax increment froma renewal and renovation district must be used to finance the cost of correcting conditions that allowdesignation of redevelopment and renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs include, but are not limited to, acquiring properties containing structurally substandardbuildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacentparcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitationof structures, clearing of the land, the removal of hazardous substances or remediation necessary fordevelopment of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the HRA or City, including the cost of preparation of thedevelopment action response plan, may be included in the qualifying costs. Pursuant to M.S., Section 469.1763, Subd. 2d, expenditures that meet the requirement as affordable housing are legally permitted expenditures of the district notwithstanding M.S., Section 469.176 Subd. 4j. Subsection 2-28. Summary The Edina Housing and Redevelopment Authority is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the 44th and France 2 Tax Increment Financing District 2-17 Appendix A Project Description In 2018, the HRA received application from Orion Investments seeking to acquire and redevelop a vacantand underutilized area within the 44th and France Commercial Area consisting of approximately 1-acre ofvacant commercial property (former Edina Cleaners site) and adjacent rental housing. The proposed $29million mixed-use redevelopment project will consist of 46-units of primarily market-rate rental housing, 7,000 square feet of first floor commercial space, and supporting parking infrastructure. It is anticipated thatthree of the housing units will be designated for occupancy and rent restricted to residents earning 50% ofArea Median Income. The redevelopment addresses several of the goals identified within the 2018 Small Area Plan for the City of Edina’s 44th & France Neighborhood Node, including: • Remove vacant buildings from a prominent corner; • Construct a mixed-use building at a scale recommended by the Small Area Plan; • Remediate soil contaminants from previous users; • Improve storm water conditions on the site; • Provide approximately 40 stalls of shared public parking located on the street level of the project; • Bury overhead utilities throughout the majority of the Neighborhood Node; • Improve the sidewalk and streetscape along portions of France Ave. and Sunnyside Rd.; • Provide an outdoor public plaza for use by the community; • Provide public art; • Provide 3 units of affordably-priced housing for at least 15-years; and• Provide $160,000 in direct financial contribution to the Edina Affordable Housing Fund The redevelopment is expected to start as early as the close of 2018 and occur over the next 18-monthsreaching occupancy in 2020. Tax increment from the District will be utilized in conjunction with potentialfunding from the Metropolitan Council, Minnesota Department of Employment and Economic Development(DEED), and Hennepin County to provide financing for the estimated $29 million private redevelopmentproject. The HRA proposes to issue a pay-as-you-go TIF Note to the developer to reimburse qualifying costsnecessary to facilitate the redevelopment. Appendix A-1 XXX XX'-X" T.O. XXX EL = XX'- X" SECTION AND ELEVATION REF INTERIOR ELEVATION REF DETAIL REF WALL TYPE WINDOW TYPE ELEVATION REF SPOT ELEVATION REF FLOOR FINISH TRANSITION REF X X X AX.X X X X X X X X X X EXTERIOR ELEVATION KEYNOTE REF ROOM NAME AND NUMBER DOOR NUMBER SECTION KEYNOTE REF REVISION NUMBER FIRE EXTINGUISHER CABINET FIRE EXTINGUISHER - WALL MOUNTED ROOM X XXX XX XX Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS: KEY PLANNOT FOR CONSTRUCTIONI hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota 7/27/2018 10:49:53 AMT1.1 TITLE SHEET 217525 ESG ESG France Ave Apartments France Ave Apartments 4500 France Ave S, Edina MN 55410 PRELIMINARY REZONING & SITE PLAN SUBMITTAL 7/27/2018 PROJECT TEAM SYMBOLS LEGENDPROJECT LOCATION DRAWING INDEX France Ave Apartments OWNER/DEVELOPER:Orion Investments 4530 West 77th Street, Edina, MN 55436 Ph: 612-812-7788 ARCHITECT:Elness Swenson Graham Architects, Inc. 500 Washington Ave. South, Suite 1080 Minneapolis, MN 55415 Ph: 612-339-5508 Fx: 612-339-5382 CONTRACTOR:T.B.D. CIVIL ENGINEER:Sunde Engineering, PLLC. 10830 Nesbit Avenue South Bloomington, MN 55437 Ph: 952-881-3344 Fx: 952-881-1913 LANDSCAPE ARCHITECT:Damon Faber 401 2nd Ave. N, Suite 410 Minneapolis, MN 55401 Ph: 612-332-7522 STRUCTURAL ENGINEER:T.B.D. MECHANICAL ENGINEER:T.B.D. PLUMBING ENGINEER:T.B.D. ELECTRICAL ENGINEER:T.B.D. 4500 France Ave S, Edina MN 55410 Vicinity Site Location DRAWING INDEX DRAWING NUMBER DRAWING NAME PREL REZONE & SITE PLAN SUB 7/27/18GENERAL INFORMATION T1.1 TITLE SHEET * CIVIL C1.0 DEMOLITION PLAN * C1.1 SITE LAYOUT PLAN * C1.2 GRADING, DRAINAGE, UTILITY AND EROSION CONTROL PLAN * C1.3 NOTES AND DETAILS * C1.4 STORMWATER POLLUTION PREVENTION PLAN * LANDSCAPE L010 GENERAL NOTES & SCHEDULES * L110 MATERIALS & LAYOUT PLAN * L160 LANDSCAPE PLAN * L410 ENLARGED PLAN - PUBLIC PLAZA * L420 SITE SECTION & RENDERINGS * L500 LANDSCAPE DETAILS * ARCHITECTURAL A0.0 SITE IMAGES * A0.1 ARCHITECTURAL SITE PLAN * A0.2 PARKING & FIRST LEVEL PLAN * A0.3 LEVEL 2 & 3 FLOOR PLAN * A0.4 LEVEL 4 & ROOF PLAN * A0.5 EXTERIOR ELEVATIONS * A0.6 EXTERIOR ELEVATIONS * A0.7 EXTERIOR MATERIALS * A0.8 PERSPECTIVE VIEWS * A0.9 PERSPECTIVE VIEWS * A0.10 PERSPECTIVE VIEWS SURVEY 1 ALTA/NSPS LANDTITLE SURVEY * SURVEY 2 TOPOGRAPHIC SURVEY * UNIT MIX & SQUARE FOOTAGES No. Description Date France Avenue SouthSunnyside AvenueParking Entry/Exit Outline of Building Above Transformer Public Pocket Park -Refer to Landscape Drawings 4 ' - 0 3/32 "Parking Entry/Exit 2' - 6 " 5' - 6 " 7' - 6 " 5' - 6"7' - 3"1' - 9"1' - 0" 9' - 2 " 6' - 6" 6 0 ' - 7"Existing House 11' - 0 1 / 2 " 1 0 ' - 7 " 2 6 ' - 4 1/2"20' - 4 1/2"9 ' - 0 " D N 2 5 ' - 4"2 2 ' - 8 "22 ' - 6 "9' - 0" 8' - 0 " 2 8' - 7"1 4' - 9 1/ 2 " 2' - 0 1 / 2 " 6' - 6 1/2" Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS: KEY PLANNOT FOR CONSTRUCTIONI hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota 7/27/2018 10:49:43 AMA0.1 ARCHITECTURAL SITE PLAN 217525 Author Checker 07/24/18 France Ave Apartments France Ave Apartments 4500 France Ave S, Edina MN 55410 PRELIMINARY REZONING & SITE PLAN SUBMITTAL 7/27/2018 1/16" = 1'-0"A0.1 1 FIRST LEVEL FLOOR PLAN No. Description Date France Avenue SouthSunnyside Avenue17,496 SF Public Parking 3,587 SF Restaurant Parking Entry/Exit Outline of Building Above 604 SF Trash 1,311 SF Retail 1,649 SF Retail 872 SF 1 BR 1,197 SF 2 BR Transformer 2,566 SF Lobby Public Pocket Park -Refer to Landscape Drawings 627 SF Service 209 SF Storage Service C o rrido rParking Entry/Exit 29,561 SF Parking Elec Rm W aterRoom Transformer location at grade above 1,250 SF Storage Wall Bicycle Storage Parking Entry/Exit Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS: KEY PLANNOT FOR CONSTRUCTIONI hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota 7/27/2018 10:49:46 AMA0.2 PARKING & FIRST LEVEL PLAN 217525 ESG ESG France Ave Apartments France Ave Apartments 4500 France Ave S, Edina MN 55410 PRELIMINARY REZONING & SITE PLAN SUBMITTAL 7/27/2018 1/16" = 1'-0"A0.2 1 FIRST LEVEL FLOOR PLAN 1/16" = 1'-0"A0.2 2 PARKING LEVEL FLOOR PLAN No. Description Date Elec 1,263 SF 2 BR 1,350 SF 2 BR 1,488 SF 2 BR 1,280 SF 2 BR 1,489 SF 2 BR 735 SF 1 BR 1,413 SF 2 BR 806 SF 1 BR 1,040 SF 1 BR DEN Tr 1,428 SF 2 BR Amenity Terrace 919 SF 1 BR 1,168 SF 2 BR 1,197 SF 2 BR 1,425 SF 2 BR 1,432 SF 2 BR 725 SF 1 BR Club Room 930 sf Fitness Women Men P rivateTerraceP riv ate Terra ce Priv ate Terra ce P riv ate T errace Storage Yoga Elec 1,263 SF 2 BR 806 SF 1 BR 1,488 SF 2 BR 1,280 SF 2 BR 1,488 SF 2 BR 1,425 SF 2 BR 1,428 SF 2 BR 731 SF 1 BR 737 SF 1 BR 737 SF 1 BR 1,415 SF 2 BR 1,040 SF 1 BR DEN Tr 737 SF 1 BR 1,168 SF 2 BR 919 SF 1 BR 1,197 SF 2 BR 608 SF Storage 725 SF 1 BR 1,432 SF 2 BR 1,350 SF 2 BR Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS: KEY PLANNOT FOR CONSTRUCTIONI hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota 7/27/2018 10:49:47 AMA0.3 LEVEL 2 & 3 FLOOR PLAN 217525 Author Checker 07/24/18 France Ave Apartments France Ave Apartments 4500 France Ave S, Edina MN 55410 PRELIMINARY REZONING & SITE PLAN SUBMITTAL 7/27/2018 1/16" = 1'-0"A0.3 1 SECOND LEVEL FLOOR PLAN 1/16" = 1'-0"A0.3 2 THIRD LEVEL FLOOR PLAN No. Description Date 2,493 SF 2 BR 1,838 SF 2 BR 1,263 SF 2 BR 1,432 SF 2 BR 1,462 SF 2 BR 1,506 SF 2 BR 1,631 SF 2 BR 1,280 SF 2 BR Elec Roof of Level Below Tr 253 SF Elevator Lobby 749 SF Rooftop Patio Screened Restaurant Mechanical Corral Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS: KEY PLANNOT FOR CONSTRUCTIONI hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota 7/27/2018 10:49:48 AMA0.4 LEVEL 4 & ROOF PLAN 217525 Author Checker 07/24/18 France Ave Apartments France Ave Apartments 4500 France Ave S, Edina MN 55410 PRELIMINARY REZONING & SITE PLAN SUBMITTAL 7/27/2018 1/16" = 1'-0"A0.4 1 MP-04 City Submittal 1/16" = 1'-0"A0.4 2 ROOF LEVEL City Submittal No. Description Date 1A 1B6 7 543B 12 3C 6 8B 9 5 3A 3B 3B10 10 10 5 245 11 1C 8A 7 6 7 4 3C 6 8B 3B1B 1A 4 6 3A 5 3B 1A 1B 5 4 8B 3C 7 24 8A 3B 3B 10 7 1C1B 12 451B1C 2A 7 9 2 75 4 612 9 2 4 5 7B4 7 1A 29 3C 12 7B 5 4 EXTERIOR MATERIAL KEY 1A BRICK MASONRY COLOR 1 1B BRICK MASONRY COLOR 2 3A 3B 2 4 7 PREFABRICATED METAL BALCONY SYSTEM METAL PANEL-ZINC FINISH METAL COMPOSITE PANEL -BLACK 3 COAT CEMENTITIOUS STUCCO -NATURAL GREY COLOR FIBER CEMENT PANEL -CHARCOAL COLOR 8A METAL SLATTED PARKING SCREENING 6 STOREFRONT -ANODIZED ALUMINUM BLACK 5 COMPOSITE WINDOW 3C PREFINISHED METAL PANEL -BLACK 8B LOUVERED MECHANICAL SCREEN 9 METAL CAP FLASHING -BLACK 1C BURNISHED BLOCK MASONRY 10 CHANNEL EDGED ENTRY CANOPY 11 ALUMINUM OVERHEAD GARAGE DOOR W/ GLASS LITES 12 PREFINISHED ALUMINUM GUARDRAIL SYTEM LEVEL 1 100' - 0" LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8" ROOF LEVEL 147' - 0" LOWER LEVEL 90' - 0" T.O. ELEVATOR CORE 160' - 0"13' - 0"11' - 4"10' - 4"10' - 4"15' - 0"10' - 0"LEVEL 1 100' - 0" LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8" ROOF LEVEL 147' - 0" LOWER LEVEL 90' - 0" T.O. ELEVATOR CORE 160' - 0"13' - 0"11' - 4"10' - 4"10' - 4"15' - 0"10' - 0"LEVEL 1 100' - 0" LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8" ROOF LEVEL 147' - 0" T.O. ELEVATOR CORE 160' - 0"13' - 0"11' - 4"10' - 4"10' - 4"15' - 0"LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8" ROOF LEVEL 147' - 0" T.O. ELEVATOR CORE 160' - 0"13' - 0"11' - 4"10' - 4"10' - 4"LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8" ROOF LEVEL 147' - 0" T.O. ELEVATOR CORE 160' - 0"13' - 0"11' - 4"10' - 4"10' - 4"LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8"10' - 4"10' - 4"LEVEL 2 115' - 0" LEVEL 3 125' - 4" LEVEL 4 135' - 8" ROOF LEVEL 147' - 0"11' - 4"10' - 4"10' - 4"Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS: KEY PLANNOT FOR CONSTRUCTIONI hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota 7/27/2018 10:49:50 AMA0.5 EXTERIOR ELEVATIONS 217525 ESG ESG France Ave Apartments France Ave Apartments 4500 France Ave S, Edina MN 55410 PRELIMINARY REZONING & SITE PLAN SUBMITTAL 7/27/2018 1/16" = 1'-0"A0.5 1 East Elevation 1 1/16" = 1'-0"A0.5 2 East Elevation 2 1/16" = 1'-0"A0.5 3 West Elevation 1/16" = 1'-0"A0.5 4 South Elevation 1/16" = 1'-0"A0.5 5 Internal Elevation 3 1/16" = 1'-0"A0.5 6 Internal Elevation 2 1/16" = 1'-0"A0.5 7 Internal Elevation 1 No. Description Date Appendix B Map of the Southeast Edina Redevelopment Project Area and the 44th and France 2 TIF District (AS MODIFIED SEPTEMBER 24, 2020) Appendix B-1 æ ¹» ¹» æ æ æ æ æ¹»æ æ ¹º¹º ¹º ñ ñ ñ ¹»æ æ æ ¹º ¹º æ æ ¹º æ æ ¹º ¹º æ æ æ ñ æ ¹º ñ æ ñTRACY AVEVERNON AVEWOODDALE AVEHANSEN RDVALLEY VIEW RD70TH ST W FRANCE AVE S44th & France 2 Mud Lake LakeEdina Mirr o r L a k e Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Me l o d y L a k e LakePamela HawkesLake Harvey Lake Centennial Lake Minne h a h a C r e e k Nine Mile Creek Nine Mile C r e e k Canadian Pacific RailroadCanadian Pacific RailroadCityHall St Peters Lutheran Church & School FireStation Public Works &Park Maintenance GraceChurch PublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStationBLAKE RDSCHAEFER RDVERNON A V E CAHILL RD66TH ST W YORK AVE SINTERLACHEN BLVD MALONEY AVE 44TH ST W 50TH ST W 54TH ST W 58TH ST W GLEASON RD70TH ST W 76TH ST W DEWEY HILL RD VALLEY V I E W R D VALLEY VIEW RD MINNESOTA DR78TH ST W I-494 I-494 HWY 100HWY 169HWY 169HWY 100HWY 62 HWY 62 / Engineering Dept. September 2018 44th and France 2 TIF District Southeast Edina Redevelopment Project Area 44th and France 2 TIF District 0702824440068 07 0 2 8 2 4 4 4 0 0 7 0 07 0 2 8 2 4 4 4 0 0 6 9 0702824440067 0702824440066 SUNNYSIDE RDFRANCE AVE/ Engineering Dept. September 2018 44th and France 2 TIF District 44th and France 2 TIF District (Original) Southeast Edina Redevelopment Project Area SUNNYSIDE RDFRANCE AVE SEDINAMINNEAPOLIS0702824440068 0702824440067 0702824440069 0702824440070 0702824440066 September 2020 ±44th AND FRANCE 2 TIF DISTRICT (as Modified) 44th & France TIF District (as Modified) Municipal Boundary 0 50Feet Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by theparcel(s) listed below. Parcel Numbers Address Owner 0702824440066 4500 France Private Owner 0702824440067 4500 France Private Owner 0702824440068 3903 Sunnyside Rd Private Owner 0702824440069 3905 Sunnyside Rd Private Owner 0702824440070 3907 Sunnyside Rd Private Owner (AS MODIFIED SEPTEMBER 24, 2020) Parcel number 0702824440070 is undergoing a lot split to remove a portion of property from the District. The legal description of the portion of the property to be removed is as follows: DESCRIPTION OF RELEASE PARCEL That part of Lot 8, Block 2, Fairbairn's Rearrangement in Waveland & Waveland Park, Hennepin County, Minnesota described as commencing at the most westerly corner of said Lot 8; thence on an assumed bearing of North 47 degrees 35 minutes 29 seconds East, along the northerly line of said Lot 8, a distance of 12.00 feet; thence South 33 degrees 43 minutes 44 seconds East, parallel with the west line of said Lot 8, a distance of 75.00 feet; thence South 47 degrees 35 minutes 29 seconds West, parallel with said northerly line of Lot 8, a distance of 12.00 feet, to said west line of Lot 8; thence North 33 degrees 43 minutes 44 seconds West, along said west line of Lot 8, a distance of 75.00 feet to the point of beginning. 4843-0633-8501\1 C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 10/4/2018 Base Value Assumptions - Page 1 44th and France 2 TIF Projection- 1% Inflation City of Edina, MN Mixed Use - 46-unit Apartment; 7,000 rsf Retail Redevelopment ASSUMPTIONS AND RATES DistrictType:Renewal and Renovation District Name/Number:ISD 273 / WD 3 County District #:Exempt Class Rate (Exempt)0.00% First Year Construction or Inflation on Value 2019 Commercial Industrial Preferred Class Rate (C/I Pref.) Existing District - Specify No. Years Remaining First $150,000 1.50% Inflation Rate - Every Year:1.00%Over $150,000 2.00% Interest Rate:4.75%Commercial Industrial Class Rate (C/I)2.00% Present Value Date:1-Aug-20 Rental Housing Class Rate (Rental)1.25% First Period Ending 1-Feb-21 Affordable Rental Housing Class Rate (Aff. Rental) Tax Year District was Certified:Pay 2019 First $121,000 0.75% Cashflow Assumes First Tax Increment For Development:2021 Over $121,000 0.25% Years of Tax Increment 16 Non-Homestead Residential (Non-H Res. 1 Unit) Assumes Last Year of Tax Increment 2036 First $500,000 1.00% Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25% Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.) Fiscal Disparities Contribution Ratio 32.2123%Pay 2018 First $500,000 1.00% Fiscal Disparities Metro-Wide Tax Rate 145.0950%Pay 2018 Over $500,000 1.25% Maximum/Frozen Local Tax Rate: 112.296%Pay 2018 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)112.296%Pay 2018 State-wide Tax Rate (Comm./Ind. only used for total taxes)43.8650%Pay 2018 Market Value Tax Rate (Used for total taxes)0.22182%Pay 2018 Building Total Percentage Tax Year Property Current Class After Land Market Market Of Value Used Original Original Tax Original After Conversion Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap. 0702824440066 4500 France 64,100 0 64,100 100%64,100 Pay 2019 C/I 1,282 Rental 801 0702824440067 4500 France 310,100 1,000 311,100 100%311,100 Pay 2019 C/I 6,222 C/I Pref.5,472 0702824440068 4500 France 945,000 1,000 946,000 100%946,000 Pay 2019 C/I Pref.18,170 Rental 11,825 0702824440069 Res 280,000 126,100 406,100 100%406,100 Pay 2019 Non-H Res. 1 Unit 4,061 Rental 5,076 0702824440070 Res 294,000 156,000 450,000 100%450,000 Pay 2019 Non-H Res. 1 Unit 4,500 Rental 5,625 1,893,200 284,100 2,177,300 2,177,300 34,235 28,800 Note: 1. Base values are for pay 2019 based upon review of County website on 9.10.2018. Area/ Phase Tax Rates BASE VALUE INFORMATION (Original Tax Capacity) Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\EDINA\Housing Economic Redevelopment\TIF\TIF Districts\44th & France 2 - 2018\TIF Runs\4500 France TIF Run Final 10.3.2018 10/4/2018 Base Value Assumptions - Page 2 44th and France 2 TIF Projection- 1% Inflation City of Edina, MN Mixed Use - 46-unit Apartment; 7,000 rsf Retail Redevelopment Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2019 2020 2021 2022 Payable Apartments 339,804 339,804 46 15,631,000 Rental 195,388 4,248 29%100%100%100%2022 Retail 471 471 6,972 3,287,000 C/I Pref.64,990 9 0%100%100%100%2022 TOTAL 18,918,000 260,378 Note: 1. Market values are based upon the Assessor's preliminary estimate provided 7.27.2018. TIF Projections are based on existing Pay 2018 local tax rates. Total Fiscal Local Local Fiscal State-wide Market Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit Apartments 195,388 0 195,388 219,412 0 0 34,673 254,085 5,523.59 Retail 64,990 20,935 44,055 49,472 30,375 27,850 7,291 114,989 16.49 TOTAL 260,378 20,935 239,443 268,885 30,375 27,850 41,964 369,074 Note: 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 369,074 Current Market Value - Est.2,177,300 less State-wide Taxes (27,850)New Market Value - Est.18,918,000 less Fiscal Disp. Adj.(30,375) Difference 16,740,700 less Market Value Taxes (41,964)Present Value of Tax Increment 2,565,757 less Base Value Taxes (30,361) Difference 14,174,943 Annual Gross TIF 238,523 Value likely to occur without Tax Increment is less than:14,174,943 WHAT IS EXCLUDED FROM TIF?MARKET VALUE BUT / FOR ANALYSIS TAX CALCULATIONS PROJECT INFORMATION (Project Tax Capacity) Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\EDINA\Housing Economic Redevelopment\TIF\TIF Districts\44th & France 2 - 2018\TIF Runs\4500 France TIF Run Final 10.3.2018 10/4/2018 Tax Increment Cashflow - Page 3 44th and France 2 TIF Projection- 1% Inflation City of Edina, MN Mixed Use - 46-unit Apartment; 7,000 rsf Retail Redevelopment TAX INCREMENT CASH FLOW Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD % of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date - - - - 02/01/21 100%56,875 (28,800) - 28,076 112.296%31,528 15,764 (57) (1,571) 14,136 13,488 0.5 2021 08/01/21 100%56,875 (28,800) - 28,076 112.296%31,528 15,764 (57) (1,571) 14,136 26,663 1 2021 02/01/22 100%260,378 (28,800) (19,172) 212,406 112.296%238,523 119,262 (429) (11,883) 106,949 124,028 1.5 2022 08/01/22 100%260,378 (28,800) (19,172) 212,406 112.296%238,523 119,262 (429) (11,883) 106,949 219,134 2 2022 02/01/23 100%262,981 (28,800) (19,381) 214,800 112.296%241,212 120,606 (434) (12,017) 108,155 313,081 2.5 2023 08/01/23 100%262,981 (28,800) (19,381) 214,800 112.296%241,212 120,606 (434) (12,017) 108,155 404,848 3 2023 02/01/24 100%265,611 (28,800) (19,593) 217,219 112.296%243,928 121,964 (439) (12,152) 109,372 495,496 3.5 2024 08/01/24 100%265,611 (28,800) (19,593) 217,219 112.296%243,928 121,964 (439) (12,152) 109,372 584,040 4 2024 02/01/25 100%268,267 (28,800) (19,806) 219,661 112.296%246,671 123,335 (444) (12,289) 110,602 671,503 4.5 2025 08/01/25 100%268,267 (28,800) (19,806) 219,661 112.296%246,671 123,335 (444) (12,289) 110,602 756,937 5 2025 02/01/26 100%270,950 (28,800) (20,022) 222,128 112.296%249,441 124,721 (449) (12,427) 111,844 841,327 5.5 2026 08/01/26 100%270,950 (28,800) (20,022) 222,128 112.296%249,441 124,721 (449) (12,427) 111,844 923,758 6 2026 02/01/27 100%273,659 (28,800) (20,240) 224,620 112.296%252,239 126,120 (454) (12,567) 113,099 1,005,181 6.5 2027 08/01/27 100%273,659 (28,800) (20,240) 224,620 112.296%252,239 126,120 (454) (12,567) 113,099 1,084,714 7 2027 02/01/28 100%276,396 (28,800) (20,460) 227,136 112.296%255,065 127,533 (459) (12,707) 114,366 1,163,273 7.5 2028 08/01/28 100%276,396 (28,800) (20,460) 227,136 112.296%255,065 127,533 (459) (12,707) 114,366 1,240,009 8 2028 02/01/29 100%279,160 (28,800) (20,682) 229,678 112.296%257,919 128,960 (464) (12,850) 115,646 1,315,804 8.5 2029 08/01/29 100%279,160 (28,800) (20,682) 229,678 112.296%257,919 128,960 (464) (12,850) 115,646 1,389,840 9 2029 02/01/30 100%281,952 (28,800) (20,907) 232,245 112.296%260,802 130,401 (469) (12,993) 116,938 1,462,968 9.5 2030 08/01/30 100%281,952 (28,800) (20,907) 232,245 112.296%260,802 130,401 (469) (12,993) 116,938 1,534,398 10 2030 02/01/31 100%284,771 (28,800) (21,133) 234,838 112.296%263,714 131,857 (475) (13,138) 118,244 1,604,951 10.5 2031 08/01/31 100%284,771 (28,800) (21,133) 234,838 112.296%263,714 131,857 (475) (13,138) 118,244 1,673,867 11 2031 02/01/32 100%287,619 (28,800) (21,362) 237,457 112.296%266,655 133,327 (480) (13,285) 119,563 1,741,935 11.5 2032 08/01/32 100%287,619 (28,800) (21,362) 237,457 112.296%266,655 133,327 (480) (13,285) 119,563 1,808,423 12 2032 02/01/33 100%290,495 (28,800) (21,594) 240,102 112.296%269,625 134,812 (485) (13,433) 120,894 1,874,093 12.5 2033 08/01/33 100%290,495 (28,800) (21,594) 240,102 112.296%269,625 134,812 (485) (13,433) 120,894 1,938,239 13 2033 02/01/34 100%293,400 (28,800) (21,827) 242,773 112.296%272,625 136,312 (491) (13,582) 122,239 2,001,594 13.5 2034 08/01/34 100%293,400 (28,800) (21,827) 242,773 112.296%272,625 136,312 (491) (13,582) 122,239 2,063,479 14 2034 02/01/35 100%296,334 (28,800) (22,063) 245,471 112.296%275,654 137,827 (496) (13,733) 123,598 2,124,601 14.5 2035 08/01/35 100%296,334 (28,800) (22,063) 245,471 112.296%275,654 137,827 (496) (13,733) 123,598 2,184,304 15 2035 02/01/36 100%299,297 (28,800) (22,301) 248,196 112.296%278,715 139,357 (502) (13,886) 124,970 2,243,270 15.5 2036 08/01/36 100%299,297 (28,800) (22,301) 248,196 112.296%278,715 139,357 (502) (13,886) 124,970 2,300,868 16 2036 02/01/37 Total 3,904,316 (14,056) (389,026) 3,501,234 Present Value From 08/01/2020 Present Value Rate 4.75%2,565,757 (9,237) (255,652) 2,300,868 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\EDINA\Housing Economic Redevelopment\TIF\TIF Districts\44th & France 2 - 2018\TIF Runs\4500 France TIF Run Final 10.3.2018 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year'sactivity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website athttp://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix E-1 Appendix F Renewal and Renovation Qualifications for the District Appendix F-1 Final Report of Inspection Procedures and Results For Determining Qualifications of a Tax Increment Financing (TIF) District as a Renewal and Renovation District Edina HRA Proposed TIF District Edina, Minnesota Stantec Project No. 193804402 October 9, 2018 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 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 Renewal and Renovation 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 Sunnyside Road on the west, 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 four of the five parcels, located within the proposed TIF District, meet the qualifications required for a Renewal and Renovation District. Figure 1 – Proposed TIF District SCOPE OF WORK The proposed district consists of five (5) parcels containing two (2) commercial buildings, two (2) residential buildings, and one (1) on-grade paved parking lot. 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. Page 4 CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Renewal and Renovation District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District does qualify as a Renewal and Renovation 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 not make such determination [that the building is structurally substandard] without an interior inspection of the property..." 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.” 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.” Page 5 2. Condition of Building Test …”20 percent of the buildings are structurally substandard; and 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community; 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 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 Page 6 469.175, 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 and both residential buildings within the proposed TIF District on September 26, 2018 and October 3, 2018. 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. 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, 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 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 2018. 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 2018; 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. Page 9 Finding: Two (2) of the four (4) buildings/structures (50 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, two (2) of the four (4) buildings/structures (50 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: Page 10 Edina Cleaners – 4500 France Avenue South – Parcel 0702824440066 This parcel is a paved parking lot. Edina Cleaners – 4500 France Avenue South – Parcel 0702824440067 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). Edina Cleaners – 4500 France Avenue South – Parcel 0702824440068 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). Private Residence – 3905 Sunnyside Road – Parcel 0702824440069 This residence has code and condition deficiencies, but they are not significant enough to reach the required 15 percent of building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). Private Residence – 3907 Sunnyside Road – Parcel 0702824440070 This residence has code and condition deficiencies, but they are not significant enough to reach the required 15 percent of building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). 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 Renewal and Renovation District under Minnesota Statutes, Section 469.174, Subdivision 10a, it is our professional opinion that the proposed TIF District does qualify as a Renewal and Renovation District. The remainder of this report describes our process and findings in detail. 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. APPENDIX A Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440066 OWNER NAME: 4500 France Avenue Llc PARCEL ADDRESS: 4500 France Ave S, Edina MN 55410 PARCEL AREA: 0.03 acres, 1,393 sq ft A-T-B: Abstract SALE PRICE: SALE DATA: SALE CODE: ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Vacant Land-Commercial HOMESTEAD: Non-Homestead MARKET VALUE: $27,900 TAX TOTAL: $5,744.70 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Vacant Land-commercial HOMESTEAD: Non-homestead MARKET VALUE: $64,100 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 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440067 OWNER NAME: 4500 France Avenue Llc PARCEL ADDRESS: 4500 France Ave S, Edina MN 55410 PARCEL AREA: 0.15 acres, 6,741 sq ft A-T-B: Abstract SALE PRICE: SALE DATA: SALE CODE: ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Commercial-Non Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $425,700 TAX TOTAL: $19,720.36 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Commercial-non Preferred HOMESTEAD: Non-homestead MARKET VALUE: $311,100 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 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440068 OWNER NAME: 4500 France Avenue Llc PARCEL ADDRESS: 3903 Sunnyside Rd, Edina MN 55424 PARCEL AREA: 0.47 acres, 20,544 sq ft A-T-B: Torrens SALE PRICE: $975,968 SALE DATA: 02/2017 SALE CODE: Excluded From Ratio Studies ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Commercial-Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $520,400 TAX TOTAL: $25,221.64 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Commercial-preferred HOMESTEAD: Non-homestead MARKET VALUE: $946,000 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 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440069 OWNER NAME: Ryann S Doucette PARCEL ADDRESS: 3905 Sunnyside Rd, Edina MN 55424 PARCEL AREA: 0.2 acres, 8,659 sq ft A-T-B: Abstract SALE PRICE: $375,000 SALE DATA: 08/2016 SALE CODE: Warranty Deed ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Residential HOMESTEAD: Non-Homestead MARKET VALUE: $400,500 TAX TOTAL: $6,127.04 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Residential HOMESTEAD: Non-homestead MARKET VALUE: $406,100 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 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440070 OWNER NAME: Ryann S Doucette PARCEL ADDRESS: 3907 Sunnyside Rd, Edina MN 55424 PARCEL AREA: 0.2 acres, 8,590 sq ft A-T-B: Abstract SALE PRICE: $378,000 SALE DATA: 01/2014 SALE CODE: Warranty Deed ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Residential HOMESTEAD: Non-Homestead MARKET VALUE: $434,200 TAX TOTAL: $7,529.48 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Residential HOMESTEAD: Non-homestead MARKET VALUE: $450,000 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 2018 APPENDIX B CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No. & Property Address: 0702824440066 4500 France Avenue South Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 3:00 p.m. Inspection Type: Exterior. Summary of Conditions: On-grade paved parking lot. Type of Construction: Asphalt pavement. Structure Size(s): 1,393 SF Summary of Conditions: Paved parking lot appears to be in good condition. • There are no buildings on this parcel that would require an inspection. CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440067 4500 France Avenue South Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Commercial Building; originally a service garage; converted to a dry cleaners Type of Construction: Exterior masonry bearing walls, cast-in-place concrete foundation and floor slab, wood-framed roof. Date of Construction: Original building constructed in 1928. Structure Size(s): 6,532 square feet main level; partial basement within building footprint 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: $1,059,560.00 Estimated Cost to Correct Building Code Deficiencies: $405,298.00 Percentage of Replacement Cost for Building Code Deficiencies: 38.3% Description of Condition Deficiencies • Exterior doors (4) currently swing into the building and all are 32” wide doors. Current code requires exterior exit doors to swing in direction of egress travel and provide a minimum 32” clear width when open to 90 degrees. • 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. • Only one of the four exterior doors is aligned with existing exterior grade. The remaining three doors will require re-grading of existing parking lot and/or sidewalks for the doors to comply with ADA requirements for an accessible route. • Stair to partial basement level does not comply with current code for tread depth and riser height. • Restroom is not in compliance with ADA guidelines. Per current code two restrooms are required to accommodate an occupant load of 66. • All exterior windows are single-glazed. • All exterior walls are uninsulated. • Wood roof framing is not fire-retardant treated. • Fully adhered EPDM roofing membrane system has failed at several locations, causing water intrusion damage to the wood roof framing members. • 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. CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440068 4500 France Avenue South Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Commercial Building (originally a theater) and paved parking lot; currently a dry cleaners Type of Construction: Exterior masonry bearing walls, cast-in-place concrete foundation and floor slab, wood-framed roof. Date of Construction: Original building constructed in 1936. Structure Size(s): 7,427 square feet main level; partial basement within building footprint; partial second floor within building footprint 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: $1,397,260.00 Estimated Cost to Correct Building Code Deficiencies: $380,478.00 Percentage of Replacement Cost for Building Code Deficiencies: 27.2% Description of Condition Deficiencies • Exterior doors (3) currently swing into the building and all are 32” wide doors. Current code requires exterior exit doors to swing in direction of egress travel and provide a minimum 32” clear width when open to 90 degrees. • 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. • Three door openings have been infilled. One at the south wall providing egress from the main theater space and the other two in the east wall providing egress from the stage. The existing openings are 64” wide. Each opening will need one new 36” wide outswinging door with a structural stoop with frost footings to prevent heaving which could restrict the door swing and access/egress capability. • Stair to partial basement level does not comply with current code for tread depth and riser height. • Stair to partial upper floor level does not comply with current code for tread depth and riser height. • Restrooms are not in compliance with ADA guidelines. Per current code two restrooms are required to accommodate an occupant load of 75. • All exterior windows are single-glazed. • All exterior walls are uninsulated. • Wood roof framing is not fire-retardant treated. • 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. • Parking lot pavement needs full replacement CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440069 3905 Sunnyside Road Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Residential home with detached garage Type of Construction: Wood-framed construction, stucco exterior, asphalt shingles. Date of Construction: Original building constructed in 1936. Structure Size(s): 873 square feet main level with 86 square foot porch; full basement and partial upper level 379 square foot garage Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: o Estimated cost to correct building code deficiencies is less than 15% of the estimated replacement cost. Estimated Replacement Cost: $507,625.00 Estimated Cost to Correct Building Code Deficiencies: $18,146.00 Percentage of Replacement Cost for Building Code Deficiencies: 3.6% Description of Condition Deficiencies • Exterior walls are under-insulated. • Attic space/roof is under-insulated. • Asphalt shingles on house and garage are in need of replacement. CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440070 3907 Sunnyside Road Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Residential home with detached garage Type of Construction: Wood-framed construction, stucco exterior, asphalt shingles. Date of Construction: Original building constructed in 1928. Structure Size(s): 1,052 square feet main level; full basement and partial upper level; 246 square foot garage Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: o Estimated cost to correct building code deficiencies is less than 15% of the estimated replacement cost. Estimated Replacement Cost: $562,500.00 Estimated Cost to Correct Building Code Deficiencies: $21,773.00 Percentage of Replacement Cost for Building Code Deficiencies: 3.8% Description of Condition Deficiencies • Windows are single-pane glazing. • Exterior walls are under-insulated. • Attic space/roof is under-insulated. APPENDIX C CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT ESTIMATED REPLACEMENT COSTS 1 Property ID No. & Property Address: 0702824440066 4500 France Avenue South Paved parking lot. Estimated Cost to Correct Building Code Deficiencies: $0.00 Property ID No. & Property Address: 0702824440067 4500 France Avenue South Replace exterior doors (4) Remove existing doors and frames – 4 @ $150/EA $600.00 Widen existing openings – 4 @ $3,500/EA $14,000.00 New 3’ wide aluminum entrance door and frame $2,025.00 New 3’ wide flush hollow metal insulated door and frame 3 @ $2,905/EA $8,715.00 West front entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 East front entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 West entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 East entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 Upgrade stairs to partial basement level – 16 Risers @ $650/riser $10,400.00 Replace handrails at stairs to basement and upper levels 58 LF @ $35/LF $2,030.00 Restroom upgrade – demolition and new construction Male Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Female Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Replace existing single-glazed windows with new thermally- Improved frames and insulating glass – 346 SF @ $89/SF $30,794.00 Insulate exterior masonry walls – 4,860 SF @ $14/SF $68,040.00 Install fire sprinkler system to protect the wood roof framing 6,532 SF @ $6.03/SF $39,388.00 Replace fully adhered EPDM system with new fully adhered EPDM roofing system with R-31.25 insulation 6,532 SF @ $12.50/SF $81,650.00 Replace lighting system – 6,532 SF @ $8.25/SF $53,889.00 HVAC System upgrade – 6,532 SF @ $7.50/SF $48,990.00 Ventilation System upgrade – 6,532 SF @ $5.25/SF $34,293.00 Estimated Cost to Correct Building Code Deficiencies: $405,298.00 CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT ESTIMATED REPLACEMENT COSTS 2 Property ID No. & Property Address: 0702824440068 4500 France Avenue South Replace exterior doors (6) Remove existing doors and frames – 6 @ $150/EA $900.00 Widen existing openings – 2 @ $3,500/EA $7,000.00 New 3’ wide flush hollow metal insulated door and frame 6 @ $2,905/EA $17,430.00 Exit door stoop upgrade (6) Demo existing sidewalk – 3 CY @ $370/CY x 6 $6,660.00 New concrete footing – 2 CY @ $395/CY x 6 $4,740.00 New 8” CMU walls – 56 SF @ $11.75/SF x 6 $3,948.00 New concrete stoop/ramp – 2.5 CY @ $370/CY x 6 $5,550.00 Insulate exterior masonry walls - 6,050 SF @ $14/SF $84,700.00 Replace single pane glazing with thermally improved frames and insulated glass – 164 SF @ $89/SF $14,596.00 Insulate roof – 7,427 SF @ $5.50/SF $40,849.00 Restroom upgrade – demolition and new construction Male Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Female Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Upgrade stairs to partial basement levels and partial upper level 44 Risers @ $650/riser $28,600.00 Replace handrails at stairs to basement and upper levels 124 LF @ $35/LF $4,340.00 HVAC System upgrade – 7,427 SF @ $7.50/SF $55,703.00 Ventilation System upgrade – 7,427 SF @ $5.25/SF $38,992.00 Replace pavement in parking lot and re-stripe – 834 SY @ $18.55/SY $15,470.00 Estimated Cost to Correct Building Code Deficiencies: $380,478.20 Property ID No. & Property Address: 0702824440069 3905 Sunnyside Road Insulate exterior walls – 1,305 SF @ $5.50/SF $7,178.00 Insulate attic/roof – 873 SF @ $2.75/SF $2,400.00 Replace asphalt shingles – 1,428 SF @ $6.00/SF $8,568.00 Estimated Cost to Correct Building Code Deficiencies: $18,146.00 Property ID No. & Property Address: 0702824440070 3907 Sunnyside Road Replace existing single-glazed wood windows with new metal clad wood windows with insulating glass 12 double-hung @ $575/EA $6,900.00 6 awning @ $475/EA $2,850.00 Insulate exterior walls – 1,660 SF @ $5.50/SF $9,130.00 Insulate attic/roof – 1,052 SF @ $2.75/SF $2,893.00 Estimated Cost to Correct Building Code Deficiencies: $21,773.00 APPENDIX D EDINA HRA PROPOSED TIF DISTRICT 193804402 1 EXISTING CONDITIONS PHOTOS Photo 1: Pavement condition at parking lot Photo 2: Pavement condition at parking lot Photo 3: Pavement condition at parking lot Photo 4: Not used EDINA HRA PROPOSED TIF DISTRICT 193804402 2 EXISTING CONDITIONS PHOTOS Photo 5: Edina Cleaners north wall Photo 6: Edina Cleaners east and north walls Photo 7: Edina Cleaners west wall Photo 8: Edina Cleaners stair at partial basement EDINA HRA PROPOSED TIF DISTRICT 193804402 3 EXISTING CONDITIONS PHOTOS Photo 9: Edina Cleaners only restroom Photo 10: Edina Cleaners windows at north wall Photo 11: Edina Cleaners windows at east wall Photo 12: Edina Cleaners windows at west wall EDINA HRA PROPOSED TIF DISTRICT 193804402 4 EXISTING CONDITIONS PHOTOS Photo 13: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 14: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 15: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 16: Edina Cleaners exposed wood roof framing EDINA HRA PROPOSED TIF DISTRICT 193804402 5 EXISTING CONDITIONS PHOTOS Photo 17: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 18: Edina Cleaners fully adhered EPDM roofing system Photo 19: Edina Cleaners fully adhered EPDM roofing system damage at roof drain Photo 20: Edina Cleaners fully adhered EPDM roofing system damage at roof drain EDINA HRA PROPOSED TIF DISTRICT 193804402 6 EXISTING CONDITIONS PHOTOS Photo 21: Edina Cleaners exterior door opening infilled Photo 22: Edina Cleaners exterior doors at west wall Photo 23: Edina Cleaners exterior doors at east wall (two infilled) Photo 24: Edina Cleaners exterior doors at south wall EDINA HRA PROPOSED TIF DISTRICT 193804402 7 EXISTING CONDITIONS PHOTOS `+ Photo 25: Edina Cleaners main level space and stairs to partial upper level Photo 26: Edina Cleaners stair to partial upper level Photo 27: Edina Cleaners stair to partial basement Photo 28: Edina Cleaners stair to partial basement EDINA HRA PROPOSED TIF DISTRICT 193804402 8 EXISTING CONDITIONS PHOTOS Photo 29: Edina Cleaners restroom Photo 30: Edina Cleaners restroom missing urinals Photo 31: Edina Cleaners single-glazed windows Photo 32: Edina Cleaners single-glazed windows EDINA HRA PROPOSED TIF DISTRICT 193804402 9 EXISTING CONDITIONS PHOTOS Photo 33: Edina Cleaners uninsulated exterior walls Photo 34: Edina Cleaners uninsulated exterior walls Photo 35: Edina Cleaners uninsulated exterior walls and damaged doors Photo 36: Edina Cleaners exposed wood roof framing EDINA HRA PROPOSED TIF DISTRICT 193804402 10 EXISTING CONDITIONS PHOTOS Photo 37: Edina Cleaners exposed wood roof framing Photo 38: Edina Cleaners exposed wood roof framing Photo 39: Edina Cleaners parking lot with wood screen fence Photo 40: Edina Cleaners south wall and parking lot EDINA HRA PROPOSED TIF DISTRICT 193804402 11 EXISTING CONDITIONS PHOTOS Photo 41: 3905 Sunnyside Road exterior Photo 42: 3905 Sunnyside Road roof shingles at garage Photo 43: 3905 Sunnyside Road roof shingles at garage Photo 44: 3905 Sunnyside Road roof shingles at house EDINA HRA PROPOSED TIF DISTRICT 193804402 12 EXISTING CONDITIONS PHOTOS Photo 45: 3907 Sunnyside Road exterior Photo 46: 3907 Sunnyside Road single-glazed windows Photo 47: 3907 Sunnyside Road single-glazed windows Photo 48: 3907 Sunnyside Road single-glazed windows Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment FinancingPlan (TIF Plan) for 44th and France 2 Tax Increment Financing District (District), as requiredpursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that 44th and France 2 Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10a. The District consists of five parcels, with plans to redevelop the area for rental housingand commercial/industrial purposes. At least 70 percent of the area of the parcels in theDistrict are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures; at least 20 percent of the buildings in the District, not including outbuildings, are structurally substandard; and at least 30 percent of the other buildings in the District require substantial renovation or clearance. (See Appendix F 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 the 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 redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. The existing property contains vacant andsubstandard buildings whose renovation requires high costs related to demolition,remediation and reconstruction. The redevelopment also requires substantial investment toward public improvements such as local transportation and utility infrastructure and shared public parking. The combination of limited amounts of property available for expansion adjacent to the existing redevelopment site, height/density limitations, and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer for the redevelopment provided a proforma outlining project sources and uses as well as projected rent, vacancy and financing assumptions. City staff and the City’s financial advisor reviewed the information and have determined that the project is not feasible without assistance due to anticipated rent levels and market returns not supporting the redevelopment costs for this site. The term of assistance for the Appendix G-1 redevelopment project is expected to be less than the maximum 16-year term of a renewaland renovation district. 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 vacant and/or underutilized property requires site and public improvement costs that are improbable without public assistance. Specifically, the cost of site preparation, demolition, remediation, and public improvements to include underground parking and utilities will add significantly to the total redevelopment cost ofany development in this area. Site and public improvements costs necessary to sustainthe 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 increase in market value will be $16,740,700. 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 $2,565,757. 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 valueincrease greater than $14,174,943 (the amount in clause b less the amount in clause c)without similar 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 Planning Commission reviewed the TIF Plan and found that the TIF Plan conformsto the general development plan of the City. 4. Finding that the TIF Plan for the 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. Appendix G-2 The project to be assisted by the District will result in increased employment in the City and theState of Minnesota, the renovation of substandard properties, increased tax base of the State, addressing several of the goals identified within the City’s 44th and France Neighborhood land use and development plans, and add a high-quality development to the City which also expands the availability of safe and decent life-cycle housing in the City. But-For Analysis Current Market Value $2,177,300 New Market Value - Estimate $18,918,000 Difference $16,740,700 Present Value of Tax Increment $2,565,757 Difference $14,174,943 Value Likely to Occur Without TIF is Less Than: $14,174,943 Appendix G-3 4851-2163-2458\4 Second Amendment to Redevelopment Agreement This Second Amendment to Redevelopment Agreement (this “Amendment”) is made and entered into as of September 25, 2020, among the City of Edina, Minnesota, a Minnesota statutory city (the “City”), the Housing and Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the State of Minnesota (the “Authority”) and Orion 4500 France, LLC, a Delaware limited liability company (“Developer”). Recitals: A. The City, the Authority, and Developer are parties to that certain Redevelopment Agreement dated December 18, 2018 (“Original Agreement”), as amended by that certain First Amendment to Redevelopment Agreement dated April 25, 2019 (the “First Amendment”, together with the Original Agreement, collectively, the “Existing Agreement”). The “Agreement” is defined as the Existing Agreement as amended by this Amendment. B. Section 3.5 of the Original Agreement contemplates that Developer will cause a portion of the Minimum Improvements Area which is not necessary for the Minimum Improvements to be legally subdivided and conveyed to the adjoining neighbor upon or after Completion of the Minimum Improvements, such portion being referred to in the “Release Parcel” and that the parties will amend the Agreement memorializing the release of the Release Parcel from the Minimum Improvements Area. C. Developer has elected to subdivide the Minimum Improvements and Minimum Improvements Area via a three-dimensional registered land survey to separate the various elements of the Minimum Improvements into separate tax parcels (the “RLS”). As of the date hereof, due to the impacts related to coronavirus disease 2019 (COVID-19), Developer has been unable to register the Minimum Improvements Area as required and obtain the approval to record the RLS with Hennepin County, and accordingly has not be able to complete the “Final Plat” as required for issuance of the TIF Note pursuant to the Original Agreement. D. Upon the terms and conditions set forth in this Amendment, the parties desire to: (i) redefine the Minimum Improvements Area; (ii) redefine and release the Release Parcel; (iii) acknowledge and agree upon the subdivision of the Release Parcel; (iv) acknowledge and agree upon the removal of the Release Parcel from the TIF District; (v) revise the Agreement to reflect the fact that the Final Plat has not been completed due to COVID-19 and allow for the release of the Release Parcel and issuance of the TIF Note without completion of the Final Plat; (vi) provide for an amended and restated Memorandum of Agreement; and (vii) otherwise amend the Existing Agreement as set forth herein. NOW, THEREFORE, in consideration of the promises and the mutual obligations of the Parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Recitals; Definitions; Exhibits. The Recitals are true and correct statements of fact and are incorporated into this Amendment by this reference, including the definitions set forth therein. Each capitalized term used herein and the Recitals, unless otherwise defined, shall have the respective meaning ascribed to such term in the Existing Agreement. All Exhibits referred to in and attached to this Amendment are incorporated in and form a part of this Amendment as if fully set forth herein. 2. Minimum Improvements Area. The term “Minimum Improvements Area” is hereby amended to mean and be the land legally described on Exhibit A-1 attached to this Amendment, which description excludes the Release Parcel described in Section 3 of this Amendment. The definition of Minimum Improvements Area is being amended to correct a scrivener’s error in the legal description of the 2 4851-2163-2458\4 Minimum Improvements Area set forth in the Original Agreement. The definition of Minimum Improvements Area is being increased to includes two parcels of land on the west side described as Parcel 3 and Parcel 4 in Exhibit A-1 attached to this Amendment. Any reference to the Minimum Improvements Area in the Agreement shall mean the Minimum Improvements Area as described in this Amendment. Exhibit A-1 and Exhibit A-2 to the Original Agreement are hereby deleted in their entirety. 3. Release Parcel. The term “Release Parcel” is hereby amended to mean and be the land legally described on Exhibit A-2 attached to this Amendment. The Release Parcel is not included in the definition of Minimum Improvements Area. Any reference to the Release Parcel in the Agreement shall mean the Release Parcel as described in this Amendment. 4. Release of Release Parcel. The Release Parcel is hereby released from the Agreement and the Release Parcel is no longer subject to the terms and conditions of the Agreement. The Agreement is hereby terminated and of no force or effect with respect to the Release Parcel. This Amendment shall be deemed to satisfy the requirements of Section 3.5 of the Original Agreement; provided that a Partial Release of Redevelopment Agreement in a form consistent with Exhibit B attached to this Amendment is executed and notarized by the Authority, City and Developer, and is recorded against the Release Parcel and the Minimum Improvements Area. The Authority, City and Developer agree to execute a Partial Release of Redevelopment Agreement in a form consistent with Exhibit B attached to this Amendment and the recording of this release against the Release Parcel and the Minimum Improvements Area. Developer shall be responsible for the recording of the Partial Release of Redevelopment Agreement. 5. Subdivision of Release Parcel. Developer is in the process of causing the Release Parcel to be legally subdivided and conveyed to the adjoining neighbor without being encumbered by the Agreement. For purposes of satisfying the requirements of Section 3.5 of the Original Agreement, and subject to the City’s and County’s regulatory approvals under applicable Law, the City, Authority and Developer agree that the Release Parcel may be subdivided by administrative lot split and that the Release Parcel may be established as a separate tax parcel. Developer will work with the adjoining neighbor and Hennepin County to combine the Release Parcel with the adjoining neighbor parcel. Developer has been informed by the County that the lot split and combination will need to occur in separate transactions over multiple years, with the lot split in 2021 and the lot combination in 2022. 6. Removal of Release Parcel from the TIF District. Subject to and in accordance with the TIF Act, the Authority and City are in the process of (i) modifying the TIF Plan so that it includes only the Minimum Improvements Areas as amended by this Amendment. (ii) causing the Release Parcel to be removed from the TIF District. 7. Final Plat. (a) The term “Final Plat” is hereby amended to mean and be the final plat, replat, registered land survey (either two-dimensional or three-dimensional), lot combination or other subdivision for the Minimum Improvements and Minimum Improvements Area, as required and approved by the City and the County pursuant to applicable Law, including the RLS. (b) Section 3.1(c) of the Original Agreement is hereby deleted in its entirety and of no further force and effect. (c) The release and subdivision of the Release Parcel may occur prior to the recording of the Final Plat in accordance with this Amendment and Section 3.5 of the Original Agreement is amended accordingly. 3 4851-2163-2458\4 (d) Section 4.5(e) of the Original Agreement is hereby deleted in its entirety and replaced with the following: “Developer shall proceed with all reasonable diligence to complete the Final Plat as required and in accordance with applicable Law and promptly thereafter cause the same to be recorded in the office of the County Recorder and/or Registrar of Titles in and for the County, as the case may be.” (e) Section 8.2(b)(viii) of the Original Agreement is hereby deleted in its entirety and of no further force and effect. 8. Memorandum. Contemporaneously with the execution of this Amendment, the parties shall execute an amended and restated Memorandum of Agreement to memorialize the terms and conditions of the First Amendment and this Amendment, in a form reasonable acceptable to each of the parties. Developer shall record such amended and restated Memorandum of Agreement in the office of the County Recorder and/or Registrar of Titles in and for the County, as the case may be. 9. Ratification. Except as specifically modified by this Amendment, the terms and provisions of the Existing Agreement shall remain in full force and effect. 10. Binding Effect. This Amendment amends and supplements the Existing Agreement. If there is a conflict between the provisions of the Existing Agreement and this Amendment, the provisions of this Amendment shall control. This Amendment shall be binding upon and inure to the benefit of the City, the Authority, Developer, and their respective successors and assigns. 11. Counterparts. This Amendment may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 12. Electronic Signatures and Copies. Each party agrees that any electronic signature of a party to this Amendment, whether digital or encrypted, is intended to authenticate the execution of this Amendment by the party and shall bind the party to its terms and conditions with the same force and effect as an original signature. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a person with the intent to sign the record, including DocuSign or other electronic signatures. A copy of a signature of a party to this Amendment, including a scanned, PDF, facsimile electronic or other copy, shall bind the party to its terms and conditions with the same force and effect as an original signature. All parties shall execute original signatures of the Amendment upon request. [Remainder of page intentionally left blank; signatures on following page(s)] [Signature Page to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 IN WITNESS WHEREOF, the City, the Authority, and Developer have caused this Amendment to be duly executed in their names and on their behalf, all on or as of the date first above written. City of Edina, Minnesota By: ______________________________________ James B. Hovland, Mayor By: ______________________________________ Scott H. Neal, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Scott H. Neal, the Mayor and City Manager, respectively, of the City of Edina, Minnesota, on behalf of the City of Edina. Notary Public [Signature Page to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Housing and Redevelopment Authority of Edina, Minnesota By: ______________________________________ James B. Hovland, Chair By: ______________________________________ Michael Fischer, Secretary STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Michael Fischer, the Chair and Secretary, respectively, of the Housing and Redevelopment Authority of Edina, Minnesota, on behalf of said Authority. Notary Public [Signature Page to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Orion 4500 France, LLC a Delaware limited liability company By: Orion Investments Edina II, LLC, a Minnesota limited liability company, its: Manager By: ______________________________________ Name: Ted Carlson Its: Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of September, 2020, by Ted Carlson, the manager of Orion Investments Edina II, LLC, a Minnesota limited liability company, the Manager of Orion 4500 France, LLC, a Delaware limited liability company, on behalf of the limited liability company. Notary Public [Exhibit A-1 to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Exhibit A-1 Minimum Improvements Area Real property in the City of Edina, County of Hennepin, State of Minnesota, described as follows: Parcel 1: Lots 1 and 2 and that part of Lot 6 described as follows: Commencing at the most Northerly corner of said Lot 6; thence South along the East line of said lot; 40.62 feet; thence Northwesterly 30.2 feet to a point on the Northerly line of said Lot 6, distant 27.19 feet Westerly from the point of beginning; thence Northeasterly to the point of beginning, all in Block 2, "Fairbairn's Rearrangement" in Waveland and Waveland Park, including all of the vacated alley which lies North of the South line of said Lot 2 extended West, Hennepin County, Minnesota. (Abstract property) Parcel 2: Lots 3, 4 and 5; That part of Lot 6, described as follows: Commencing on the Easterly line of said Lot at a point distant 40.62 feet Southerly from the most Northerly corner of said Lot, thence Northwesterly 30.2 feet to a point on the Northwesterly line of said Lot distant 27.19 feet Southwesterly from the most Northerly corner of said Lot; thence Southwesterly along the Northwesterly line of said Lot to the most Westerly corner of said Lot, thence Southeasterly along the Southwesterly line of said Lot to the most Southerly corner of said Lot, thence Northerly along the Easterly line of said Lot to the point of beginning; That part of the alley now vacated, described as follows: Commencing at the point of intersection of the center line of alley, now vacated with the North line of Lot 3 extended Westward, thence East on said extended line to the Northwest corner of said Lot 3, thence along the Easterly line of said alley to the most Southerly corner of Lot 5, thence Southwesterly along an extension of the Southeasterly line of said Lot to the center line of said alley, thence Northwesterly along the center line of said alley to a point of its intersection with a line erected to bisect the angle existing in the Westerly line of said alley, thence Southwest along said line to the West line of said alley, thence North along said West line to a point in said line 40.62 feet South of the most Northerly corner of Lot 6, the same being the point of intersection to said West line of alley with the extension Westward of the North line of Lot 3, thence East along said extended line to the point of beginning; All in Block 2, "Fairbairn's Rearrangement" in Waveland and Waveland Park. Hennepin County, Minnesota (Torrens property, Certificate of Title No. 1474225) Parcel 3: Lot 7, Block 2, Fairbairn's Rearrangement in Waveland and Waveland Park, Hennepin County, Minnesota. Together with that part of the adjacent vacated alley that accrued thereto by reason of the vacation thereof. (Abstract property) Parcel 4: Lot 8, Block 2, Fairbairn's Rearrangement in Waveland and Waveland Park, Hennepin County, Minnesota; [Exhibit A-1 to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 EXCEPT That part of Lot 8, Block 2, Fairbairn's Rearrangement in Waveland & Waveland Park, Hennepin County, Minnesota described as commencing at the most westerly corner of said Lot 8; thence on an assumed bearing of North 47 degrees 35 minutes 29 seconds East, along the northerly line of said Lot 8, a distance of 12.00 feet; thence South 33 degrees 43 minutes 44 seconds East, parallel with the west line of said Lot 8, a distance of 75.00 feet; thence South 47 degrees 35 minutes 29 seconds West, parallel with said northerly line of Lot 8, a distance of 12.00 feet, to said west line of Lot 8; thence North 33 degrees 43 minutes 44 seconds West, along said west line of Lot 8, a distance of 75.00 feet to the point of beginning. (Abstract property) [Exhibit A-2 to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Exhibit A-2 Release Parcel That part of Lot 8, Block 2, Fairbairn's Rearrangement in Waveland & Waveland Park, Hennepin County, Minnesota described as commencing at the most westerly corner of said Lot 8; thence on an assumed bearing of North 47 degrees 35 minutes 29 seconds East, along the northerly line of said Lot 8, a distance of 12.00 feet; thence South 33 degrees 43 minutes 44 seconds East, parallel with the west line of said Lot 8, a distance of 75.00 feet; thence South 47 degrees 35 minutes 29 seconds West, parallel with said northerly line of Lot 8, a distance of 12.00 feet, to said west line of Lot 8; thence North 33 degrees 43 minutes 44 seconds West, along said west line of Lot 8, a distance of 75.00 feet to the point of beginning. [Exhibit B to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Exhibit B Partial Release of Redevelopment Agreement PARTIAL RELEASE OF REDEVELOPMENT AGREEMENT This Partial Release of Redevelopment Agreement is made and effective as of _______________, 2020, by and among the City of Edina, Minnesota, a Minnesota statutory city (the “City”), the Housing and Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the State of Minnesota (the “Authority”) and Orion 4500 France, LLC, a Delaware limited liability company (“Developer”). The City, Authority and Developer are parties to that certain Redevelopment Agreement dated December 18, 2018, as amended by that certain First Amendment to Redevelopment Agreement dated April 25, 2019, and as amended by that certain Second Amendment to Redevelopment Agreement dated September 25, 2020 (collectively, the “Redevelopment Agreement”). The Redevelopment Agreement is evidenced by: (1) a Memorandum of Redevelopment Agreement dated December 18, 2018, filed for record on March 11, 2019, in the office of the County Recorder of Hennepin County, Minnesota, as document no. A10641562, and further filed for record on March 11, 2019 in the office of the Registrar of Titles of Hennepin County, Minnesota, as document no. T05599249; and (2) a First Amended and Restated Memorandum of Redevelopment Agreement dated September 25, 2020, filed for record on ____________, 2020, in the office of the County Recorder of Hennepin County, Minnesota, as document no. ______________, and further filed for record on ____________, 2020, in the office of the Registrar of Titles of Hennepin County, Minnesota, as document no. _________ (collectively, the “Memorandum”). The City, Authority and Developer hereby release the real property described on the attached Exhibit A (“Release Parcel”) from the Redevelopment Agreement and the Memorandum. The Release Parcel is no longer subject to the terms and conditions of the Redevelopment Agreement and Memorandum. The Redevelopment Agreement and Memorandum are hereby terminated and of no force or effect with respect to the Release Parcel. This is a partial release and is intended only to release the Release Parcel as specifically described herein from the Redevelopment Agreement and Memorandum, and is not intended to release any other real property from the Redevelopment Agreement or Memorandum. Other real property (described as real property excluding the Release Parcel) remains subject to the Redevelopment Agreement and Memorandum, and the Redevelopment Agreement and Memorandum remain in full force and effect with respect to such other real property. [Remainder of page intentionally left blank; signatures on following page(s)] [Exhibit B to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 IN WITNESS WHEREOF, the City, Authority and Developer have caused this Partial Release of Redevelopment Agreement to be duly executed and delivered as of the day and year first above written. City of Edina, Minnesota By: ______________________________________ James B. Hovland, Mayor By: ______________________________________ Scott H. Neal, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Scott H. Neal, the Mayor and City Manager, respectively, of the City of Edina, Minnesota, on behalf of the City of Edina. Notary Public [Exhibit B to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Housing and Redevelopment Authority of Edina, Minnesota By: ______________________________________ James B. Hovland, Chair By: ______________________________________ Michael Fischer, Secretary STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Michael Fischer, the Chair and Secretary, respectively, of the Housing and Redevelopment Authority of Edina, Minnesota, on behalf of said Authority. Notary Public [Exhibit B to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Orion 4500 France, LLC a Delaware limited liability company By: Orion Investments Edina II, LLC, a Minnesota limited liability company, its: Manager By: _____________________________________ Name: Ted Carlson Its: Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of September, 2020, by Ted Carlson, the manager of Orion Investments Edina II, LLC, a Minnesota limited liability company, the Manager of Orion 4500 France, LLC, a Delaware limited liability company, on behalf of the limited liability company. Notary Public [Exhibit B to Second Amendment to Redevelopment Agreement] 4851-2163-2458\4 Exhibit A Release Parcel That part of Lot 8, Block 2, Fairbairn's Rearrangement in Waveland & Waveland Park, Hennepin County, Minnesota described as commencing at the most westerly corner of said Lot 8; thence on an assumed bearing of North 47 degrees 35 minutes 29 seconds East, along the northerly line of said Lot 8, a distance of 12.00 feet; thence South 33 degrees 43 minutes 44 seconds East, parallel with the west line of said Lot 8, a distance of 75.00 feet; thence South 47 degrees 35 minutes 29 seconds West, parallel with said northerly line of Lot 8, a distance of 12.00 feet, to said west line of Lot 8; thence North 33 degrees 43 minutes 44 seconds West, along said west line of Lot 8, a distance of 75.00 feet to the point of beginning. 1 4812-9024-9419\2 First Amended and Restated Memorandum of Redevelopment Agreement This First Amended and Restated Memorandum of Redevelopment Agreement (this “Memorandum”) is entered into as of September 25, 2020, by and among the City of Edina, Minnesota, a Minnesota statutory city (“City”); the Housing and Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the State of Minnesota (“Authority”); and Orion 4500 France, LLC, a Delaware limited liability company (“Developer”). Recitals: A. City, Authority, and Developer (the “Parties”) have entered into a certain Redevelopment Agreement dated as of December 18, 2018, as amended by that certain First Amendment to Redevelopment Agreement dated April 25, 2019 and that certain Second Amendment to Redevelopment Agreement dated as of an even date herewith (as may be further amended and supplemented from time to time, collectively, the “Contract”), whereby the Parties have agreed to various aspects of the redevelopment of certain real property more particularly described on the attached Exhibit A, together with all improvements, tenements, easements, rights and appurtenances pertaining to such real property, lying and being in Hennepin County, Minnesota (the “Property”). B. The Parties wish to give notice of the existence of the Contract. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 1. The above recitals are incorporated herein by reference as if fully set forth herein. Capitalized terms, when not defined herein, shall have the meanings ascribed to them in the Contract. 2. The parties have entered into the Contract to set forth the terms and provisions governing the redevelopment of the Property. 3. This Memorandum has been executed and delivered by the Parties for the purpose of recording and giving notice that a contractual relationship for the redevelopment of the Property has been created between the Parties in accordance with the terms, covenants and conditions of the Contract. 4. The terms and conditions of the Contract are incorporated by reference into this Memorandum as if fully set forth herein. 5. This Memorandum may be executed separately in counterparts which, when taken together, shall constitute one and the same instrument. 6. This Memorandum amends, restates, and supersedes, in its entirety, that certain Memorandum of Redevelopment Agreement recorded March 11, 2019 in the office of the Hennepin County Recorder as Document No. A10641562 and in office of the Hennepin County Registrar of Titles as Document No. T05599249. [Remainder of page left blank intentionally; signature pages follow] [Signature Page to First Amended and Restated Memorandum of Redevelopment Agreement (4500 France)] 4812-9024-9419\2 IN WITNESS WHEREOF, the Parties have executed this Memorandum as of the date first written above. City of Edina, Minnesota By: __________________________________ James B. Hovland, Mayor By: __________________________________ Scott H. Neal, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Scott H. Neal, the Mayor and City Manager, respectively, of the City of Edina, Minnesota, on behalf of the City of Edina. ______________________________________ Notary Public [Signature Page to First Amended and Restated Memorandum of Redevelopment Agreement (4500 France)] 4812-9024-9419\2 Housing and Redevelopment Authority of Edina, Minnesota By: __________________________________ James B. Hovland, Chair By: __________________________________ Michael Fischer, Secretary STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Michael Fischer, the Chair and Secretary, respectively, of the Housing and Redevelopment Authority of Edina, Minnesota, on behalf of said Authority. ______________________________________ Notary Public [Signature Page to First Amended and Restated Memorandum of Redevelopment Agreement (4500 France)] 4812-9024-9419\2 Orion 4500 France, LLC a Delaware limited liability company By: Orion Investments Edina II, LLC, a Minnesota limited liability company, its: Manager By: __________________________________ Name: ________________________________ Its: ___________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of ________________, 2020, by _______________, the __________________ of Orion Investments Edina II, LLC, a Minnesota limited liability company, the Manager of Orion 4500 France, LLC, a Delaware limited liability company, on behalf of the limited liability company. ______________________________________ Notary Public THIS DOCUMENT WAS DRAFTED BY: Dorsey & Whitney LLP 50 South Sixth Street Suite 1500 Minneapolis, MN 55402-1498 [Exhibit A to First Amended and Restated Memorandum of Redevelopment Agreement (4500 France)] 4812-9024-9419\2 Exhibit A Legal Description Real property in the City of Edina, County of Hennepin, State of Minnesota, described as follows: Parcel 1: Lots 1 and 2 and that part of Lot 6 described as follows: Commencing at the most Northerly corner of said Lot 6; thence South along the East line of said lot; 40.62 feet; thence Northwesterly 30.2 feet to a point on the Northerly line of said Lot 6, distant 27.19 feet Westerly from the point of beginning; thence Northeasterly to the point of beginning, all in Block 2, "Fairbairn's Rearrangement" in Waveland and Waveland Park, including all of the vacated alley which lies North of the South line of said Lot 2 extended West, Hennepin County, Minnesota. (Abstract property) Parcel 2: Lots 3, 4 and 5; That part of Lot 6, described as follows: Commencing on the Easterly line of said Lot at a point distant 40.62 feet Southerly from the most Northerly corner of said Lot, thence Northwesterly 30.2 feet to a point on the Northwesterly line of said Lot distant 27.19 feet Southwesterly from the most Northerly corner of said Lot; thence Southwesterly along the Northwesterly line of said Lot to the most Westerly corner of said Lot, thence Southeasterly along the Southwesterly line of said Lot to the most Southerly corner of said Lot, thence Northerly along the Easterly line of said Lot to the point of beginning; That part of the alley now vacated, described as follows: Commencing at the point of intersection of the center line of alley, now vacated with the North line of Lot 3 extended Westward, thence East on said extended line to the Northwest corner of said Lot 3, thence along the Easterly line of said alley to the most Southerly corner of Lot 5, thence Southwesterly along an extension of the Southeasterly line of said Lot to the center line of said alley, thence Northwesterly along the center line of said alley to a point of its intersection with a line erected to bisect the angle existing in the Westerly line of said alley, thence Southwest along said line to the West line of said alley, thence North along said West line to a point in said line 40.62 feet South of the most Northerly corner of Lot 6, the same being the point of intersection to said West line of alley with the extension Westward of the North line of Lot 3, thence East along said extended line to the point of beginning; All in Block 2, "Fairbairn's Rearrangement" in Waveland and Waveland Park. Hennepin County, Minnesota (Torrens property, Certificate of Title No. 1474225) Parcel 3: Lot 7, Block 2, Fairbairn's Rearrangement in Waveland and Waveland Park, Hennepin County, Minnesota. Together with that part of the adjacent vacated alley that accrued thereto by reason of the vacation thereof. (Abstract property) [Exhibit A to First Amended and Restated Memorandum of Redevelopment Agreement (4500 France)] 4812-9024-9419\2 Parcel 4: Lot 8, Block 2, Fairbairn's Rearrangement in Waveland and Waveland Park, Hennepin County, Minnesota. (Abstract property) PARTIAL RELEASE OF REDEVELOPMENT AGREEMENT This Partial Release of Redevelopment Agreement is made and effective as of ______________________________, 2020, by and among the City of Edina, Minnesota, a Minnesota statutory city (the “City”), the Housing and Redevelopment Authority of Edina, Minnesota, a public body corporate and politic organized and existing under the laws of the State of Minnesota (the “Authority”) and Orion 4500 France, LLC, a Delaware limited liability company (“Developer”). The City, Authority and Developer are parties to that certain Redevelopment Agreement dated December 18, 2018, as amended by that certain First Amendment to Redevelopment Agreement dated April 25, 2019, and as amended by that certain Second Amendment to Redevelopment Agreement dated September 25, 2020 (collectively, the “Redevelopment Agreement”). The Redevelopment Agreement is evidenced by: (1) a Memorandum of Redevelopment Agreement dated December 18, 2018, filed for record on March 11, 2019, in the office of the County Recorder of Hennepin County, Minnesota, as document no. A10641562, and further filed for record on March 11, 2019 in the office of the Registrar of Titles of Hennepin County, Minnesota, as document no. T05599249; and (2) a First Amended and Restated Memorandum of Redevelopment Agreement dated September 25, 2020, filed for record on _____________________, 2020, in the office of the County Recorder of Hennepin County, Minnesota, as document no. ________________________, and further filed for record on _________________________, 2020, in the office of the Registrar of Titles of Hennepin County, Minnesota, as document no. ________________________ (collectively, the “Memorandum”). The City, Authority and Developer hereby release the real property described on the attached Exhibit A (“Release Parcel”) from the Redevelopment Agreement and the Memorandum. The Release Parcel is no longer subject to the terms and conditions of the Redevelopment Agreement and Memorandum. The Redevelopment Agreement and Memorandum are hereby terminated and of no force or effect with respect to the Release Parcel. This is a partial release and is intended only to release the Release Parcel as specifically described herein from the Redevelopment Agreement and Memorandum, and is not intended to release any other real property from the Redevelopment Agreement or Memorandum. Other real property (described as real property excluding the Release Parcel) remains subject to the Redevelopment Agreement and Memorandum, and the Redevelopment Agreement and Memorandum remain in full force and effect with respect to such other real property. 2 IN WITNESS WHEREOF, the City, Authority and Developer have caused this Partial Release of Redevelopment Agreement to be duly executed and delivered as of the day and year first above written. City of Edina, Minnesota By: ______________________________________ James B. Hovland, Mayor By: ______________________________________ Scott H. Neal, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Scott H. Neal, the Mayor and City Manager, respectively, of the City of Edina, Minnesota, on behalf of the City of Edina. Notary Public 3 Housing and Redevelopment Authority of Edina, Minnesota By: ______________________________________ James B. Hovland, Chair By: ______________________________________ Michael Fischer, Secretary STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2020, by James B. Hovland and Michael Fischer, the Chair and Secretary, respectively, of the Housing and Redevelopment Authority of Edina, Minnesota, on behalf of said Authority. Notary Public 4 Orion 4500 France, LLC a Delaware limited liability company By: Orion Investments Edina II, LLC, a Minnesota limited liability company, its: Manager By: _____________________________________ Name: Ted Carlson Its: Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of September, 2020, by Ted Carlson, the manager of Orion Investments Edina II, LLC, a Minnesota limited liability company, the Manager of Orion 4500 France, LLC, a Delaware limited liability company, on behalf of the limited liability company. Notary Public Exhibit A Release Parcel That part of Lot 8, Block 2, Fairbairn's Rearrangement in Waveland & Waveland Park, Hennepin County, Minnesota described as commencing at the most westerly corner of said Lot 8; thence on an assumed bearing of North 47 degrees 35 minutes 29 seconds East, along the northerly line of said Lot 8, a distance of 12.00 feet; thence South 33 degrees 43 minutes 44 seconds East, parallel with the west line of said Lot 8, a distance of 75.00 feet; thence South 47 degrees 35 minutes 29 seconds West, parallel with said northerly line of Lot 8, a distance of 12.00 feet, to said west line of Lot 8; thence North 33 degrees 43 minutes 44 seconds West, along said west line of Lot 8, a distance of 75.00 feet to the point of beginning. Date: September 24, 2020 Agenda Item #: VII.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Liz Olson, Administrative Support Specialist Item Activity: Subject:Correspondence Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: There has been no correspondence since the last meeting.