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HomeMy WebLinkAbout2023-07-20 HRA Special Work Session PacketAg enda H ousing and R edevelopment Authority Work Session Meeting City of E dina, Minnesota City Hall, Community Room Special Work Session Thursday, July 20, 2023 7:30 AM I.Call to Ord er II.Roll Call III.Bu ild ing Com m unity Su p p ort for More Hou sin g IV.Project Upda te V.Ad jou rn m ent Th e E d ina Housing a n d Redevelop m ent Au thority wa n ts all pa rticip ants to be com fortable b ein g pa rt of th e p u b lic p rocess. If y ou n ee d a ssista n ce in the w a y of h ea ring am pli'ca tion, a n in terp reter, large-p rint docum en ts or som ethin g else, p lease ca ll 952-927-8861 72 hou rs in advance of the m eeting. Date: July 20, 2023 Agenda Item #: I I I. To:C hair & C ommis s ioners of the Edina HR A Item Type: O ther F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Building C ommunity S upport for More Housing Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: None I N TR O D U C TI O N: M embers from the Twin Cities H ousing Alliance will make a brief presentation and facilitate a discussion. AT TAC HME N T S: Description Pres entation Handout BUILDING COMMUNITY SUPPORT FOR BUILDING MORE HOUSING Twin Cities Housing Alliance (TCHA) advocates for local and regional housing policy that creates a more affordable, equitable, economically vital, and environmentally sustainable future for the Twin Cities community. We advocate for local and regional housing policy to: PRESERVE and enhance existing housing that is natually affordable to minimize displacement and increase housing quality. PROTECT and prioritize residents who are most vulnerable, experiencing the worse income disparities and are at greatest risk of displacement. PRODUCE more new housing with thoughtful policies to increase the available stock of rental units, from deeply affordable, income-restricted units to new market-rate units. 2 ●Data and analysis ●Workshops and expert presentations for policymakers, staff, and other stakeholders ●Policy, strategy, and project development assistance ●Best practice advice We focus on facilitating dialogue, developing solutions, and catalyzing action at the local and regional level. We offer advisory services for local governments including: POLICY TECHNICAL ASSISTANCE COMMUNICATIONS & ENGAGEMENT ASSISTANCE ●Guidance and support for engaging community members and external stakeholders ●Guidance on effective communication of complex/technical housing issues ●Amplification of local government actions and achievements 3 Overview of Current Landscape Key Data Points Tools & Strategies Building Community Support ●State of Housing Affordability ●Drivers of Housing Affordability ●Locally Dynamic Framework for Addressing the Affordability Gap ●Recommendations for Local Government Leaders 4 Growing Housing Affordability Gap 5 households earning ≤60% AMI are struggling to find housing units that are affordable to them. Only 28% of available vacancies in the Twin Cities region are affordable at ≤50% AM--and, just 3% are affordable at ≤30% AMI. Currently, 86.1% of households earning ≤30% AMI and 85.8% of households earning 31-50% AMI are experiencing cost burden. With vacancies low across all types of housing, households across all income levels are experiencing increases in cost-burden. HOUSING LANDSCAPE 6 •Housing affordability is market driven. The vast majority of housing, including affordable housing, is privately- funded and market rate. •As new housing ages, it naturally turns into affordable housing – NOAH. •Erosion of market affordability at lower AMI levels drives the need for more subsidized/income-restricted units. •Managing market affordability is the critical factor in reducing the number of cost-burdened households. Drivers of Housing Affordability 7 Erosion of Market Affordability Inadequate Supply of New Housing Lagging Income Growth & Income Inequality Impediments to New Housing 8 Erosion of Market Affordability 9 MSP region ranks 13th highest in underproduction of housing units. To meet projected growth and make up for a decade of underbuilding, our region will need to produce 18,000 housing units per year. That’s roughly $4B in annual investment. 10 Rising Cost of Goods & Living Increased Housing Wage Widening Housing Wage Gap Wage Inequality Additional Drivers Impacting Incomes Parntership with Local Government & Innovation/Creativity is Essential11 Impediments to New Housing Added Government Regulations Increased Approval Time Neighborhood Opposition PRESERVE NOAH HOUSING Maintain the affordability Prevent the deterioration Support acquisition, reinvestment 4D Tax Program Affordable Housing Trust Fund NOAH Preservation Fund Capital & Operating Subsidies Tax Incentives & Low-Income Housing Tax Credits Create Supportive Relationships Support with Carrots Rather than Sticks Swiftly Enforcement Code Violations PROTECT VULNERABLE RESIDENTS Reduce Displacement Support Housing Choice/Mobility Promote Safe & Fair Housing Direct Rental or Income Assistance Increase Availability of Tenant Based Vouchers Enforcement of Tenant & Fair Housing Practices PRODUCE NEW HOUSING Increase # of Units Produced Accelerate Pace of Development Support Mixed Income Housing Allow Higher Densities Reduce Local Fees Clarify & Standardize Approvals Relax Parking Requirements Expand Use of Project Based Vouchers Flexible Tax Increment Financing Housing Trusts Funds Density Bonuses Expedited Permitting Simply Legal Negotiations Overcome NIMBYism 12 Framework for More Homes, Thriving Communities 13 Building Community Support for More Housing BALANCING ACT 14 Recognizing NIMBY vs Genuine Concerns Genuine Resident Concerns Genuine Concerns Usually Can Be Addressed Increased Traffic Insufficient Parking Strain on Local Infrastructure & Services Loss of Neighborhood Character Perceived Risk to Property Values Increased Crime NIMBY Opposition Resistant to Persuasion even when concerns can be addressed Represents a small percentage of the overall city population Rooted in self serving motives Well funded, more affluent residents Opposition rooted in fear of change Mounts negative campaigns with fear Dominates public participation opportunities Creates confusion & erosion of trust By acknowledging and addressing genuine concerns while not being swayed by NIMBY-driven resistance, local government leaders can ensure a fair and balanced approach to community development. 15 •Focus on Undecided and Ambivalent Resident •Demonstrate Procedural Rigor, Transparency and Accountability •Champion Procedural Fairness •Emphasize Local Benefit Recommendations 16 My property value will decrease Address Genuine Community Concerns [Urban Land Institute. (2019). The Macro View on Micro Units.]Housing density can result in reduced infrastructure costs per unit, as fewer roads, utility lines, and other services are needed to support denser neighborhoods. These cost savings can be passed on to residents in the form of lower taxes. [Lincoln Institute of Land Policy. (2013). The Fiscal Implications of Development Patterns: Roads in New Growth.] New development adds to the tax base thereby reducing the overall taxes to support community services. Not the right type of housing New housing achieves community needs and goals allowing aging residents to continue living in the community and providing housing for essential workforce members and service providers. Too many apartments already Region has a severe housing shortage. 18,000 units of housing is needed per year through 2030 for a total of 180,000 new units. In addition, market studies by the development team are typically required for financing and to confirm the need for housing in particular areas. 17 Increased Crime Address Genuine Community Concerns According to a report by the Department of Housing and Urban Development (HUD), there is no proven correlation between increased housing density and crime rates. This finding is consistent with other studies and suggests that misconceptions about higher-density housing may stem from negative stereotypes rather than empirical evidence. [HUD. (2021). Strategic Planning for Suburban Housing Authorities. There are similar studies related to affordable housing that shows values actually increase in areas with new development. Added Traffic Demonstrate that required assessments and studies have been completed and reviewed by professional staff. And more housing in suburban areas leads to more efficient use of existing infrastructure, such as water supply and wastewater systems, ultimately reducing environmental impacts associated with building and maintaining these systems. [Minnesota Department of Natural Resources. (2021). Planning for Sustainable Development.] Further, lower density commercial uses often generate more daily traffic than higher density housing. Parking – too much, too little? Developers spend a significant amount of study to ensure that their developments are able to accommodate needed parking with underground or sufficient surface lots even if this number is lower than city code requirements. If a project lacks sufficient parking, fewer residents will move in, and the building’s occupancy will be lower in proportion to the parking available. Strain on Schools ■When reviewing 100 family owner-occupied homes there were 51 school-aged children on average, and 100-unit apartment complexes averaged just 31 children. The gap actually widens when taking new construction into account. Data shows an average of 64 children per 100 new single-family households in comparison to 29 children per 100 new apartment units. [American Housing Survey.] 18 Professional Panel Discussion Adam Duininck North Central States Regional Council of Carpenters Jennifer Gordon, Bader Development Heidi Rathmann-Smith Common BondJoseph Peris Ryan Companies Cathy Capone Bennett Executive Director cathy@tchousingalliance.com 612-670-8147 Discussion 19 TWIN CITIES ALLIAI\ CE The need for more and diverse housing options has become a critical issue for cities of all sizes across the Twin Cities region. As the population continues to expand and the demographics shift, the prioritization of new housing units and options will be essential to ensuring communities remain inclusive, economically vibrant, and attractive to current and prospective residents. Embracing diverse housing options will foster social cohesion, support economic growth, and maintain a high quality of life for all residents. The development of new multi-family housing, especially affordable rental housing in established neighborhoods, often generates genuine anxiety and concern among residents. Some common worries include increased vehicle traffic, insufficient parking, strain on local infrastructure and services, loss of neighborhood character, and perceived risks to property values. Such concerns arise from a genuine desire to maintain a sense of community and a high quality of life, and the anxiety accompanying these concerns is a response to feelings of uncertainty and lack of control over change. These concerns, however, can be co-opted by NIMBY (Not In My Backyard) groups who use resident apprehensions to provide cover and fuel for organized opposition to new housing rooted in more parochial interests like resisting racial and other demographic changes or preserving the current desirable neighborhood status. NIMBYs often resist change by mobilizing media, mounting campaigns, and dominating formal public participation opportunities to amplify and stoke fear about the perceived negative aspects of new multi-family housing while ignoring, eclipsing, or detracting from the benefits new housing will bring to the community. Such opposition may lead to the stalling or cancellation of much-needed housing that, in turn, exacerbates housing shortages, affordability challenges, social inequities, and community goals. Most local government leaders recognize :he need to balance the genuine concerns of residents while distinguishing them from NIMBY-driven opposition. The solutions, however, are often harder to portray, particularly in a public conversation. By engaging in open, transparent, and proactive communication with the community, officials can demonstrate their This document provides practical recommendations and tips for local government leaders seeking to create support for housing projects in their communities. By adopting these strategies, officials can successfully garner support, mitigate opposition, and pave the way for a more inclusive, sustainable, and vibrant community. commitment to addressing concerns and mitigating potential negative impacts while supporting new housing options. Providing accurate information, highlighting the benefits of multi-family housing, and involving residents in the planning and development process, local leaders build trust, alleviate anxieties, and foster support for new housing that contributes to the community's long-term economic growth and vitality. Distinguishing between genuine community concerns and organized NIMBY opposition is an essential aspect of successfully navigating proposed new housing developments and ensuring a fair and balanced approach to community planning and development. Community concerns typically stem from apprehensions about the potential impacts of new housing development and are often raised by long-term residents, community organizations, or local advocacy groups who have a vested interest in preserving and enhancing the existing character within their neighborhood. On the other hand, organized NIMBY opposition often arises from a more self-serving, exclusionary perspective. NIMBY groups may resist new housing projects, particularly multi-family or affordable housing, due to fears of perceived negative impacts on property values, aesthetics, or social dynamics. These groups tend to focus on the potential drawbacks of development without considering the broader community benefits of diverse housing options. In some cases, NIMBY groups may co-opt genuine concerns as a means to further their own agenda. By focusing on these issues and magnifying their perceived (and negative) significance, NIMBY groups create a sense of heightened anxiety and opposition within the community. As NIMBY opposition gains traction, it dominates the conversation with negative energy around a new housing development, potentially (a) creating confusion among residents and local government leaders as to what concerns are genuine versus NIMBY-driven resistance, and (b) leading to an erosion of trust between residen its and local government officials as community members feel that their genuine concerns are not being adequately addressed, while local leaders may become frustrated by perceived political pressure and obstructionism. There is significant research that shows NIMBY efforts are typically led by individuals who have disproportionately more time, resources, and connections than the average resident to be active, vocal, and influential in formal public r participation processes such as planning and approv I meetings. As such, NI BYs often attempt to garner success by influencing permitting decisions that are in the hand s of local government of icials with relatively small constituencies or pursuant to votes based on public comment. By acknowledging and addressing genuine concerns while not being swayed by NIMBY-driven resistance, local government leaders can ensure a fair and balanced approach to community development. Dated 6/6/2023 2 To proactively address concerns, navigate potential roadblocks, and make sound approval decisions about new housing developments, it is critical that local government leaders identify, mitigate, and inoculate against NIMBY distortions both in the public discourse and in the approval process. We offer the following recommendations: • Focus on undecided and ambivalent residents. NIMBYism is rooted in entrenched personal beliefs and interests that are resistant to persuasion by evidence-based arguments or constructive dialogue. Indeed, organized NIMBY opposition is often predicated on displacing, distorting, or drowning out information that would lessen concerns or increase support for new housing development. Instead of reacting to NIMBY opponents, focus on communicating and engaging with undecided and ambivalent residents to build trust. o Provide reliable, unbiased, factual information through a range of channels without jargon. o Ensure media has accurate information about the project, the process, the need, and the benefits. o Use surrogates/community leaders/community organizations to help disseminate information about the project, dispel misconceptions, and foster a constructive dialogue among residents. • Demonstrate procedural rigor, transparency, and accountability. Perceived flaws in the development planning and approval process, such as lack of transparency or deviation from regulatory standards, can fuel NIMBY-driven resistance by providing a seemingly genuine basis for opposition. This perception of unfairness can undermine trust in local government officials and the development process itself, making it essential to clearly communicate the ways in which the process is rigorous, transparent, and accountable. o Provide clear, detailed information about the process, procedures, and requirements, including formal and informal opportunities for community input. Having informal meetings off camera can support open, honest conversations about genuine resident concerns. o Provide proof that the development procedures were followed, and the requirements were met. o Publicize when a project has exceeded minimum requirements for assessments, compliance, and/or public consultation—especially when it results in changes to siting, design, etc. • Champion procedural fairness. Procedural fairness also requires that local government officials balance respect for the public participation process (which is often dominated by NIMBYs) with the public mandates for equitable housing set in their comprehensive plan and other policies that are produced pursuant to more inclusive and iterative publ c processes. o Focus on pre-planning work to identify areas where growth and increased ousing density are needed in order to meet community development goals help to mitigate against aggressive NIMBYism for every approval meeting and project by allowing the battle to be fought upfront and expectations to be set accordingly. Be diligent about identifying the previous planning work that supports the project. o Clergy and faith-based organizations often play a critical role in advocating for social justice and inclusivity, and their support can underscore the moral and ethical dimensions of providing diverse and affordable housing options. Social service organizations can provide valuable insights into the needs of vulnerable populations, ensuring that the project addresses those needs effectively. Dated 6/6/2023 3 • Emphasize local benefits. A key strategy for garnering support for new multi-family projects is to clearly explain the benefits to current local residents and neighborhoods before discussing the advantages for future occupants. This approach demonstrates that local government leaders and developers are not only concerned about the project's future residents but also committed to ensuring that existing community members continue to enjoy a high quality of life and economic prosperity. o Clearly explain the specific, hyper-local benefits a proposed housing project will have for local residents and neighborhoods. o Frame new housing as essential community infrastructure for stronger employment markets, aging-in- place, options for the younger generations, etc. o Emphasize a forward-thinking perspective highlighting the enduring benefits of the project for the community as outweighing any temporary inconveniences or challenges. Provide examples of other successful community projects. o Community groups, chambers of commerce, faith-based organizations and PTOs can highlight the potential benefits of new housing projects in terms of economic prosperity, workforce needs, educational opportunities, and overall community wellbeing. • Address genuine community concerns. Concern: We'll see a decline in property values. n Genuine concerns about property values revolve around factors that affect a neighborhood's quality of life and amenities—namely, greenspace, walkable streets, services, and infrastructure Address these by demonstrating that there will be adequate additional investments made in these categories, highlight requirements such as park dedication fees and tree replacement rules, showing mockups, and sharing examples of similar successful projects. n When new rental housing project is proposed in place of low-density commercial or on commercially zoned land, the overall taxes paid are often higher than commercial uses. In fact, the density of apartments and value, in most cases, are higher than low-density commercial uses; thereby generating more overall taxes per use. Evaluating the tax differential of each use to substantiate that a higher density residential development will pay more taxes than a single level commercial use is a good strategy for consideration. n According to several studies, increased housing density can boost economic growth by encouraging more businesses to open, providing more job opportunities, and increasing tax revenues. This has a positive effect on prope ty values in the surrounding areas as new amenities and job opportunities become available. [Urban Land Institute. (2019). The Macro View on Micro Units.] Housing density can result in reduced infrastructure costs per unit, as fewer roads, utility lines, and other services are needed to support denser neighborhoods. These cost savings can be passed on to residents in the form of lower taxes. [Lincoln Institute of Land Policy. (2013). The Fiscal Implications of Development Patterns: Roads in New Growth.] 0 Dated 6/6/2023 4 o Concern: What's proposed isn't the right type of housing. m Often this concern is a proxy for "not the right type of people" generated by the fear of change and growing demographic diversity. The concerns are usually that the new residents will be transient, criminal, etc. Communicate the importance of quality management and partnerships with local law enforcement to ensure community safety. Explain that rental housing is a growing choice and an option for current residents looking to downsize or young professionals wanting to move from a parent's home. New housing achieves community needs and goals allowing aging residents to continue living in the community and providing housing for essential workforce members and service providers. o Concern: There are already too many apartments/there will be too many apartments. n While it may be perceived that there are too many housing units being built, the facts and data show that the region has a severe housing shortage. During the Great Recession, the Twin Cities region built only a fraction of the housing units needed based on actual renter household growth. To make up for past underproduction and keep pace with projected household growth, the Twin Cities region will need to produce 18,000 units of housing per year through 2030 for a total of 180,000 new units. In addition, market studies by the development team are often required for financing and to confirm the need for housing in particular areas. o Concern: There will be a negative traffic / environmental impact. n Demonstrate that required assessments and studies have been completed and reviewed by professional staff. In most cases, new housing generates less daily traffic impacts than new retail, office or other more frequent trip generated uses. n Provide factual evidence that more housing tends to promote options for walking, cycling, and other forms of non-car-driving transportation. And more housing in suburban areas leads to more efficient use of existing infrastructure, such as water supply and wastewater systems, ultimately reducing environmental impacts associated with building and maintaining these systems. [Minnesota Department of Natural Resources. (2021). Planning for Sustainable Development.] o Concern: We'll experience an increase in crime. ▪ Accordi proven g to a report by the Department of Housing and Urban Development (HUD), there is no orrelation between increased housing density and crime rates. This finding is consistent with other studies and suggests that misconceptions about higher-density housing may stem from negative stereotypes rather than empirical evidence. [HUD. (2021). Strategic Planning for Suburban Housing Authorities.] n Having the police chief and fire chief publicly weigh in on the data can help assuage these concerns. And quality property management helps to ensure the safety of current and future residents. Dated 6/6/2023 5 o Concern: There will be too much competition for schools. n Apartments are typically more attractive to single people, couples without children and empty nesters. When reviewing 100 family owner-occupied homes there were 51 school-aged children on average, and 100-unit apartment complexes averaged just 31 children. The gap actually widens when taking new construction into account. Data shows an average of 64 children per 100 new single-family households in comparison to 29 children per 100 new apartment units. [ o Concern: Parking cannot be accommodated on site. n Developers spend a significant amount of study to ensure that their developments are able to accommodate needed parking with underground or sufficient surface lots even if this number is lower than city code requirements. If a project lacks sufficient parking, fewer residents will move in, and the building's occupancy will be lower in proportion to the parking available. n Other solutions to consider: shared parking facilities and flexible parking requirements that allow suburban areas to adapt to the changing needs of residents and can help accommodate higher housing density without significantly increasing parking demand. Dated 6/6/2023 6 Date: July 20, 2023 Agenda Item #: I V. To:C hair & C ommis s ioners of the Edina HR A Item Type: Advisory C ommunic ation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:P roject Update Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for informational and discussion purposes only. I N TR O D U C TI O N: S taff will present an update on the current status of several redevelopment projects of interest to the H R A. AT TAC HME N T S: Description Project Update 7-20-2023 Edina Housing and Redevelopment Authority Redevelopment Project Update July 20, 2023 Address Project Description Status Grandview District (East & West of Hwy 100) Eden and Arcadia Reconstruction of public roadways and new sidewalks These public improvements are funded with incremental taxes generated within the Grandview 2 TIF District Roads were completed in 2022. Sidewalk construction was completed June 2023. 5146 Eden Ave. (former PW site) Construction of pedestrian bridge and sidewalk This public infrastructure is funded with incremental taxes generated within the Grandview 2 TIF District. Construction in progress. Bridge assembly in July with placement in August. Completion anticipated in Fall 2023. 5146 Eden Ave. (former PW site) Redevelopment of vacant 3.3 acre industrial site to include senior cooperative housing, new restaurant and new public park Sales contracts in place with United Properties and Jester Concepts. United Properties has strong list of reservations. Construction pricing is being confirmed. Then the reservations will be converted to sales contracts. At least 60% of units must be under contract to secure HUD loan. Construction anticipated Spring 2024. The restaurant and park construction will follow based on construction schedule for senior co-op. 5100 Eden Ave. (office building) Proposed redevelopment of outdated office building on 1.3 acres Opus submitted proposal to rezone the site for residential use with limited commercial. Currently in the review phase with Public Hearings at Planning Commission and City Council in summer 2023. 4917 Eden Ave. Redevelopment of 2-acre commercial site (formerly Perkins) Construction began summer 2022 and the $85M mixed use project is on track to open in late 2023. A new restaurant will be included on the first floor. Public art will be installed by developer at the Eden/Willson corner. After completion, a TIF Note is anticipated to be issued to reimburse the developer for up to $5.1 M of eligible expenses. Other TIF revenues will be used for City-led roadway projects on Eden, Grange & 50th Edina HRA Project Update July 20, 2023 Page 2 Address Project Description Status Grandview Eden, Link and 50th Roadwork Improvements to the road and sidewalk network east of Highway 100. Several public improvements are anticipated to be funded with incremental taxes generated within the Eden Willson TIF District. Reconstruction of the Eden/Willson/Grange intersection began in June. The intersection will be usable in late August to restore full access to Southview School and nearby properties. Project completion anticipated in Fall 2023. Other roadway improvements anticipated 2024-2026 with schedules coordinated with other road and bridge projects in the area. Northwest Quadrant 5780 Lincoln Drive Preliminary concept for affordable multi- family housing by Solhem Solhem is seeking public financing from Minnesota Housing. Funding awards will be announced in late 2023. If awarded funds, the developer will proceed with submitting a site plan application to the City. 6075-6115 Lincoln Drive Edina West Common Area Improvements Edina West, a 162 condominium development within four buildings, will impose an HIA fee payable by its residents to fund $5,000,000 for the improvements, interest, and fees. The City’s funds will be sourced by issuing General Obligation HIA Revenue Bonds repaid by the $5MM HIA fees adopted through the Fee Resolution. These HIA fees will be imposed over a 20-year term placed on the individual condominiums’ property tax statements. Northeast Quadrant 4050 W. 51st St. Repairs and improvements to South Parking Ramp The South Ramp is temporarily closed so that structural repairs can be made. This work was scheduled in Fall 2022 and is part of the annual repair and maintenance work. Information was distributed to businesses in advance. City staff secured additional off-site parking for employees to use while the parking structure is temporarily closed. The repair work is on schedule. The cost of the work is proposed to be split by the HRA and the 50th/France commercial property owners. Edina HRA Project Update July 20, 2023 Page 3 Address Project Description Status Northeast Quadrant, continued 3930, 3944 and 3945 Market Street Nolan Mains and North Retail This mixed-use public/private project was completed in 2020. The new public parking, public plaza, and public infrastructure were delivered as contemplated in the TIF Agreement. The final commercial space was occupied in May when Cooks of Crocus Hill / Bellecour Bakery opened. The developer has curated a selective combination of local and national commercial tenants. The 50th & France Business Association has sponsored and managed a variety of successful community events in the public plaza including: live music, ballroom dance lessons, pop-up markets, children’s story reading, adult fitness and holiday events too. With full occupancy, the assessed value of the privately owned property is anticipated to increase next year. 3901 Sunnyside / 4500 France Ave Lorient Apartments This mixed-use building was completed in 2020 and delivered the public parking, public plaza and public infrastructure improvements contemplated in the TIF Agreement. The final commercial space was occupied in June. The business tenants include: Yoga Room, Ten Spot salon and Jenny in the City (clothing boutique). With full occupancy, the assessed value is anticipated to increase next year. Greater Southdale Area 7200 and 7250 France Ave. Redevelopment of 5.2 acre commercial site A two-phase site plan was approved in 2022 and the HRA committed to TIF reimbursement for extraordinary costs and elements that deliver permanent public benefit in April 2023. Both vacant buildings were razed in Fall 2022 due to safety concerns. The 7250 office building is pursuing debt financing and will announce ground breaking when private financing is in place. The 7200 site is envisioned as either hotel or multi-family residential. This second phase still needs to obtain final approvals from City Council. Edina HRA Project Update July 20, 2023 Page 4 Address Project Description Status Greater Southdale Area, continued 7235 France Ave. Macy’s Furniture Gallery site - 8 acres Enclave Development has the site under contract and exploring concepts to relocate the Furniture Gallery to a different Edina location and transform the large site into multiple building pads connected by new public realm spaces. The existing bicycle trail is secured by a permanent easement and would remain. The developer has requested that TIF be considered to offset eligible project costs and deliver market returns. Staff has confirmed that the site meets the MN criteria and could potentially be declared a TIF District. Staff has met with the developer and architects to discuss the public realm portions of the future project. The developer continues to explore options for the site. The timeline for a full proposal is unknown. 7200 block of France Ave. Improved Pedestrian Crossing (concept study) With two adjacent sites being redeveloped, this presents a rare opportunity to improve the pedestrian connectivity across France Avenue. LHB, Inc. has been retained to explore connectivity possibilities that could be incorporated into the site plans for the 7200-50 and 7235 sites. A variety of crossings are being explored, including above ground, below grade, and at- grade. Several examples have been identified in the Twin Cities and in other locations. The Edina Chamber of Commerce and nearby business owners are also exploring ideas to re-imagine France Ave. An update and further discussion of options is anticipated in summer/fall 2023. 4040 W. 70th St. Redevelopment of 1.6 acre commercial site affordable senior housing Construction continues on 4040 Flats – new affordable senior housing containing 118 units. Completion and occupancy is anticipated in October 2023. The development was awarded bond financing together with 4% tax credits, TIF, and deferred loan financing from the City of Edina, Hennepin County, and the Metropolitan Council. The City will construct a new bicycle trail across from this new housing in the near future. Edina HRA Project Update July 20, 2023 Page 5 Address Project Description Status Greater Southdale Area, continued 7001 York Ave. Redevelopment of 7.7 acre site occupied by Hennepin County’s Southdale Regional Library Hennepin County is in the site planning process. A new library is anticipated on the corner of 70th and York. Other project details have not been finalized. 7001-7025 France Ave Redevelopment of the 6-acre commercial parcel; phased construction of new US Bank, new office and new market-rate housing The HRA approved TIF reimbursement for public parking and public realm costs in 2022. The initial demolition and construction of a new US Bank branch is complete. The second commercial building was demolished in July. Additional site work will continue over summer/fall 2023. The developer has strong pre-leasing commitments for the new office building and is in the process of securing debt to finance the project. A ground breaking will be scheduled when all capital is in place. 4100 W. 76th St. Sound Apartments The affordable housing building by Aeon is completed and occupied. The Certificate of Completion was issued in May 2023. Tax Increment began to be collected this year. 4401 W. 76th St. Edina Fire Station #2 / Community Health and Fire Safety Center The City’s design team continues to refine the preliminary site plan for this new public facility. Entitlements are anticipated to be pursued in 2023 with construction in 2024- 25. After the Fire Department needs are confirmed, direction should be provided regarding the unused portion of land. There is sufficient space for 1 or 2 additional buildings and new public green space. This land could be retained, sold or leased. Pentagon Park 4640-4660 W. 77th St. Redevelopment of 5.4 acres of vacant Pentagon North office property for market-rate housing by Solhem. The Fred Apartments with 408 market-rate apartments is nearing completion. The first round of tenants moved in May 2023. The final phase of completion will occur by year end 2023. Although this project is located in the Pentagon Park TIF District, the project is privately financed. There is no TIF funding for this project. Edina HRA Project Update July 20, 2023 Page 6 Address Project Description Status Pentagon Park, continued 4620 W. 77th St. Redevelopment of portions of 5.4 acre parcel at Pentagon North for market-rate apartments with limited retail by Solhem This 278 unit apartment will have 28 units affordable at the 50% rent levels with an additional 110 units rent restricted for “attainable” housing not to exceed the 120% rent level. The affordability term is 20-years. The HRA pledged $2MM in a forgivable SPaRC loan for public access to Fred Richards Park and $7.35MM in Pooled TIF Funds. A SIPA and Redevelopment Agreement were approved in 2022. The developer has secured financing for the project and is preparing full construction documents and working through the permit approval process. 4815-4901 W. 77th St. and 7710 Computer Ave. Redevelopment of 12-acres of Pentagon Park South property for retail, hotel and market-driven office/residential uses by Solomon Real Estate & Hillcrest joint venture. The site work, parking garage and public plaza have been completed. The site has been subdivided into 5 lots to accommodate multiple phases of development. TIF Notes were issued in 2020 and the first note payments were issued in 2022. Additional payments will be made after incremental property taxes are collected. Ground breaking for the hotel (Lot 2) has been delayed by the pandemic and is expected in late 2023 or 2024. The developer continues to seek a lead professional tenant for Lot 5. 4901 W. 77th St First Bank & Trust building new facility on Lot 4 Ground breaking on Lot 4 occurred in May 2023 and construction is in full progress. This new bank facility is anticipated to be complete and open in Spring 2024. This project is privately financed. 4901 W. 77th St Eddi Apartments on Lot 3 Construction on the 200 apartments approved for Lot 3 continues. The developer is using a modular construction process to speed delivery of the project. Preleasing is now underway with move-ins expected Fall 2023. This project is privately financed. SW Quadrant 7201 Metro Blvd Edina Innovation Lab The construction of this project is nearing completion. Furnishings are the last items needed before the new facility is completed. Occupancy is anticipated in August 2023. Prepared by Bill Neuendorf and Stephanie Hawkinson July 19, 2023