HomeMy WebLinkAbout2023-10-26 HRA Regular Meeting PacketAg enda
E dina H ousing and R edevelopm ent Author ity
City of E dina, Minnesota
City Hall Council Chambers
Thursday, October 26, 2023
7:30 AM
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I.Call to Ord er
II.Roll Call
III.Pledge of Allegia n ce
IV.Ap p roval of Meetin g Agen d a
V.Com m unity Com m en t
Du ring "Com m unity Com m en t," th e Edin a Housing and Redevelop m ent
Au thority (HRA) will in vite resid ents to sh are new issues or con cern s tha t
h aven't been con sid ered in th e p ast 30 da y s b y th e HRA or w h ich a ren't
slated for fu ture consideration . Individ u als m u st lim it their com m ents to
three m inutes. Th e Ch air m a y lim it the num ber of sp ea kers on th e sa m e
issue in th e interest of tim e a n d topic. Gen era lly sp ea king, item s tha t are
elsewhere on tod ay's a genda m a y not b e addressed d u ring Com m unity
Com m en t. In d ividua ls sh ould not expect th e Ch air or Com m issioners to
resp ond to th eir com m en ts toda y . Instead the Com m issioners m ight refer the
m atter to sta. for consideration a t a fu ture m eeting.
VI.Ad option of Con sen t Agenda
All a genda item s listed on the consent a genda a re con sid ered rou tin e and
will be en acted by one m otion. There will be no sepa rate d iscussion of such
item s unless requested to be rem oved from the Con sen t Agenda by a
Com m ission er of the HRA. In su ch ca ses the item w ill b e rem oved from th e
Consent Agen d a and con sid ered im m ediately follow ing the a d option of th e
Consent Agen d a. (Fa vorable rollcall vote of m a jority of Com m issioners
p resent to approve.)
A.Minutes from Special W ork Session a n d Regu la r Meetin g on August 24, 2023
a n d th e Sp ecia l Meeting on Septem ber 19, 2023
VII.Reports/Recom m enda tions: (Favora b le vote of m ajority of Com m ission ers
p resent to approve excep t where n oted)
A.Proposed Forgivable Loa n for Mu sic Ven u e at 3916 W . 50th Street
VIII.Executive Director's Com m ents
IX.HRA Com m issioners' Com m en ts
X.Ad jou rn m ent
Th e E d ina Housing a n d Redevelop m ent Au thority wa n ts all pa rticip ants to be
com fortable b ein g pa rt of th e p u b lic p rocess. If y ou n ee d a ssista n ce in the w a y of
h ea ring am pli>ca tion, a n in terp reter, large-p rint docum en ts or som ethin g else,
p lease ca ll 952-927-8861 72 hou rs in advance of the m eeting.
Date: O c tober 26, 2023 Agenda Item #: VI.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
Minutes
F rom:Liz O ls on, P lanning Adminis trative S upport S pec ialis t
Item Activity:
Subject:Minutes from S pecial Work S ession and R egular
Meeting on August 24, 2023 and the S pec ial Meeting
on S eptember 19, 2023
Action
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
Approve the draft minutes from the S pecial Work S ession and Regular M eeting on August 24, 2023 and the
S pecial Meeting on S eptember 19, 2023
I N TR O D U C TI O N:
AT TAC HME N T S:
Description
8-24-23 Special Work Ses s ion
8-24-23 Regular Meeting
9-19-23 Special Meeting
Page 1
MINUTES
OF THE SPECIAL WORK SESSION OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 24, 2023
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 7:31 a.m.
II. ROLLCALL
Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, and Risser.
Absent: Commissioner Pierce.
III. FRANCE AVENUE PEDESTRIAN CROSSING – DISCUSSED
Economic Development Manager Neuendorf stated on behalf of the HRA, staff engaged LHB Inc. to
strategically explore a variety of manners by which an improved pedestrian crossing could be
incorporated into two privately owned redevelopment sites on France Avenue in between Gallagher
72nd Street. The vacant property at 7200-7250 France Avenue was being redeveloped by Orion
Investments. The approved TIF Agreement included provisions for many public realm improvements,
including a connection point for a future pedestrian crossing across France Avenue. Enclave
Development has the property across the street at 7235 France Avenue under contract and was
proceeding to explore the development potential. Based on the public realm preferences of the
Southdale Design Guidelines and the market costs of development, Enclave had indicated that TIF
support would likely be necessary to defray the costs of the public improvements. Realizing that
transformational change would occur on these properties in the next few years, LHB had explored
examples of multi-modal design concepts implemented in other communities to better understand
the options available to Edina. The examples included overhead bridges, below-grade tunnels and
underpasses, mixed-uses concourses, plazas, land bridges, at grade crossings, and realignment of the
driving lanes. He said staff and LHB would share their findings in an effort to better understand the
scope of work that the HRA might consider desirable and potentially willing to finance in the future
and added in the months ahead, staff would publish information on BetterTogetherEdina.com to collect
additional ideas, suggestions and concerns from the surrounding stakeholders and general public.
Mr. Neuendorf said after the initial public input was collected, LHB and staff would prepare a
recommendation for consideration by the HRA. He added that any future recommendation was
not binding but a brainstorming session only to set the general direction of a public pedestrian
crossing that would be refined and priced for future consideration.
Former Councilmember Fischer spoke about how now was the time to begin planning for such a
concept that could work toward something with the developers prior to anything construction
occurring. He shared the proposed sketch plan that included the potential for a tunnel under France
Avenue and how they felt a tunnel would not work without a bend or turn and would not be
conducive to safety then explained how a bridge was more difficult than a tunnel due to the space
needed. He spoke about the desire to create a public realm then shared several examples from
around the world that highlighted the importance of activating public space and included pros and
cons with regard to impacts to business owners, infrastructure, and feasibility. He highlighted the
need to act now instead of waiting for a bigger idea that could take 30 years and how they did not
want to give up on the tunnel concept as they could address public security and would need 60-feet
of right-of-way on both sides if a bridge were to be constructed. He spoke about impacts to
Centennial Lakes and that a tunnel would be likely no more than a 5% slope and how we needed to
take advantage of the opportunity of two developments occurring at the same time to create this
potential and affect redevelopment before any construction begins.
Minutes/HRA Worksession/August 24, 2023
Page 2
Mr. Neuendorf shared the importance of meeting both City and County goals in any project which
could be accomplished with this proposal. He stressed the need to focus on the public realm, public
benefit and public good as the City considered future zoning approvals and potential TIF and how
that could be best shaped. He commented about how this work currently was City-led which would
make the process much easier than having to involve the County.
Mike Schroeder, LHB, spoke about how a large-scale project would work and the increased level of
disruption that would be created along with impacts to neighborhoods and businesses during
construction.
The Board asked questions and provided feedback that included creation of a “stroad” that separated
one campus from another and how some felt the 30-year concept would not be viable due to its
disruption and suggested focusing on a shorter-term solution for the promenade only while others
thought the larger scale plan would be well worth the effort.
Mr. Fischer commented how if the City did not control the street the large regional corridor would
become a much larger project due to the multiple agencies and costs that would be required.
The Board stressed the need for the area to be publicly accessible and highlight the regional bike
trail in any resulting plan and how this could extend towards Fred Richards Park.
Executive Director Neal spoke about the possibility of incorporating water for storm water
management as well as a feature. Mr. Schroeder agreed finding a way to integrate water into the
promenade along with public art and other factors would make the area feel more of an extension.
The Board commented on how this investment would be worth the result versus the skyway
concept shared a few years earlier and what else could be done in other areas along France such as
6600 then thanked everyone for their input and discussion.
IV. ADJOURNMENT
Chair Hovland adjourned the meeting at 8:37 a.m.
Respectfully submitted,
Scott Neal, Executive Director
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 24, 2023
8:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 8:38 a.m. then explained the processes created for
public comment.
II. ROLLCALL
Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, and Risser.
Absent: Commissioner Pierce.
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED – AS PRESENTED
Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving the
meeting agenda as presented.
Roll call:
Ayes: Agnew, Jackson, Risser, and Hovland
Motion carried.
V. COMMUNITY COMMENT
No one appeared.
VA. EXECUTIVE DIRECTOR’S RESPONSE TO COMMUNITY COMMENT
Executive Director Neal said there were no community comments received at the last meeting.
VI. CONSENT AGENDA – ADOPTED AS PRESENTED
Member Agnew made a motion, seconded by Member Jackson, approving the consent
agenda as presented:
V.A. Draft Minutes of the Regular Meeting of August 10, 2023
V.B. Amend Contract for Private Development with United Properties Residential,
LLC
V.C. Amend Contract for Private Development with Jester Concepts, LLC
Rollcall:
Ayes: Agnew, Jackson, Risser, and Hovland
Motion carried.
VII. EXECUTIVE DIRECTOR’S COMMENTS – Received
VIII. HRA COMMISSIONER COMMENTS – Received
IX. ADJOURNMENT
Motion made by Commissioner Jackson, seconded by Commissioner Agnew, to adjourn
the meeting at 8:45 a.m.
Roll call:
Ayes: Agnew, Jackson, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
SEPTEMBER 19, 2023
IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING
I. CALL TO ORDER
Chair Hovland called the meeting to order at 10:31 p.m. then explained the processes created for
public comment.
II. ROLLCALL
Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, Pierce, and Risser.
Absent: None.
III. MEETING AGENDA APPROVED - AS PRESENTED
Motion by Commissioner Agnew, seconded by Commissioner Jackson, approving the
meeting agenda as presented.
Roll call:
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
IV. COMMUNITY COMMENT
No one appeared.
V. REPORTS AND RECOMMENDATIONS
V.A. RESOLUTION NO. 2023-07 ADOPTING THE PROPOSED BUDGET AND
ESTABLISHING THE PROPOSED TAX LEVY PAYABLE IN 2024 – ADOPTED
Executive Director Neal shared the HRA was a separate taxing authority formed by the City Council
in 1974. The purpose of the levy was to pay a portion of the administrative expenses and other
economic initiatives necessary to operate the HRA. Historically those expenses have been paid using
TIF funds. Continuing with the plan to reduce the reliance on TIF funds, the levy proposed for 2024
showed an increase from $244,400 in 2023 to $251,700 for 2024. He said HRA adoption of this
resolution was a required step in the process of establishing an HRA levy for 2024 and that the final
levy would be considered by the HRA in December.
The Board asked questions and provided feedback.
Member Pierce introduced and moved adoption of Resolution No. 2023-07, adopting
the proposed budget and establishing the proposed tax levy payable in 2024. Seconded
by Member Jackson.
Rollcall:
Ayes: Agnew, Jackson, Pierce, Hovland
Nay: Risser
Motion carried.
VI. EXECUTIVE DIRECTOR’S COMMENTS – Received
VII. HRA COMMISSIONER COMMENTS – Received
VIII. ADJOURNMENT
Motion made by Commissioner Agnew, seconded by Commissioner Jackson, to adjourn
the meeting at 10:38 p.m.
Roll call:
Minutes/HRA/September 19, 2023
Page 2
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Date: O c tober 26, 2023 Agenda Item #: VI I.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
R eport / R ecommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:P ropos ed F orgivable Loan for Music Venue at 3916
W. 50th S treet
Ac tion
Edina Housing and Redevelopment
Authority
Established 1974
C ITY O F E D IN A
HO US I NG & R EDEVELO P MENT
AUT HO R I T Y
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
Approve the Term Sheet and authorize staff to prepare a Forgivable Loan Agreement for future consideration.
I N TR O D U C TI O N:
T his item pertains to the use of S PAR C funds to support private investment in a vacant commercial space.
S taff prepared a Term S heet which is recommended to serve as the basis for a Forgivable Loan Agreement. A full
Agreement will be considered at a future public meeting of the H R A.
AT TAC HME N T S:
Description
Staff Report
Proposed Term Sheet
Staff Pres entation
October 26, 2023
Chair and Commissioners of Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Proposed Forgivable Loan for Music Venue at 3916 W. 50th Street
Information / Background:
A commercial property owner seeks to improve the outdated facilities to enable an under-utilized lower level
space to be occupied for commercial purposes. The lower level is not currently accessible to people with
physical disabilities. This condition hinders the use of the space.
The owner seeks to transform the vacant area by installing permanent facilities that will enable it to be leased
and occupied. The owner intends to install an ADA-accessible lift, new ADA-accessible bathrooms and all new
facilities to enable a new small-scale live music venue to operate with food and beverage service. The property
owner is in the process of securing an experienced and successful tenant to operate this new business.
The cost of the core building improvements to this portion of the building exceed $1 million dollars. The high
cost of these improvements jeopardize the viability of operating a successful business in this location.
In order to improve these facilities and enhance the local business climate, staff recommends that SPARC
funds be used to allow the space to be improved with permanent facilities that enable ADA compliance. A
forgivable loan up to $225,000 is recommended.
Edina created the SPARC program in 2021 using unallocated TIF monies that were available to the City/HRA
but at risk of being turned back to Hennepin County. In accordance with State Law, the SPARC program
seeks to attract and support private investment that constructs or remodels a facility that creates jobs. The
SPARC program expires in 2025. Any unused funds will be turned back to Hennepin County after the
deadline.
The City’s guiding documents promote a strong and vibrant business community. Edina’s Comprehensive Plan
(pages 10-15 and 10-16) sets several goals related to the business development in Edina …
x “… create a vibrant and attractive location for corporate headquarters, technology companies and
other businesses…”
STAFF REPORT – Proposed Financing for Music Venue at 3916 W. 50th Street Page 2
x “Support strong public-private alliances…”
Benefit to Community:
The financial participation in this privately owned and operated facility will deliver several benefits to the
broad Edina community including the following:
x Increase the property tax base
x Increase sales tax collection
x Create new permanent jobs
x Create new construction jobs
x Improve older building to allow full access to lower level with ADA-accessible equipment and
facilities
x Create a new evening-oriented business to round out services at 50th & France
Structure of Loan Agreement:
A forgivable loan agreement will be prepared based on terms that allow the property owner to update and
improve the lower level of the building so that the new business can begin operations. As a condition of the
Agreement, the business must begin operations and continue for a defined period of time. Additionally, the
new handicapped accessible elements must remain in the building even if the initial business operator would
change.
The intention of the HRA’s financial participation is to defray the cost of permanent building improvements
that will make the facility occupiable for many years. The general terms are described below:
Property
Owner: Buhl 3906, LLC - a special purpose entity of Buhl Investors
Project
Location: 3916 W. 50th Street
Project Cost: Approximately $1.1 million
Loan Amount: Up to $225,000
Timing of
Funds:
Reimburse property owner after installation of the eligible equipment, material and
labor as demonstrated by written invoices
Loan
Forgiveness:
Forgivable after the Certificate of Occupancy (or equivalent approval) is issued; the
tenant begins operations and the operations continue to 2025
Loan
Repayment: Partially repayment is required if business operations cease prior to the required date.
STAFF REPORT – Proposed Financing for Music Venue at 3916 W. 50th Street Page 3
Eligible
Expenses:
Costs (material, labor and associated costs) of new ADA accessible elevator or lift
including costs to modify the facility to accommodate this new equipment, costs of
constructing new ADA accessible bathroom facilities in the lower level, costs of
modifying or updating exterior walls, windows or doors, costs of new mechanical
ventilation for the lower level, other related costs to make the shell building accessible
per ADA and MN Accessibility Code
Ineligible
Expenses:
Soft costs, permit fees, fines, penalties, furniture and furnishings, kitchen, bar, seating
area and stage construction, loose equipment, operational expenses, start up expenses
Completion of
Work:
Unless an extension is approved by the Executive Director in advance, the work must
begin by June 30, 2024 and the space must be occupiable no later than June 30, 2025.
Evidence of
Completion:
Lien waivers or equivalent documents are required from all vendors and contractors
whose goods or services are funded with the HRA funds; a certificate of occupancy or
equivalent also required.
Conditions:
x All work must be performed in accordance with the applicable construction
permits issued by the City of Edina or other governing agency
x All work must comply with applicable state and federal laws.
x Property taxes and sales taxes must be paid in full at the time they are due
x The owner shall keep the building and site in first class condition from the
issuance of the occupancy permit through the term of this loan. Any
maintenance or operational deficiencies shall be remedied within 30 days after
notice of such from the City.
Default: Standard default provisions shall apply.
Business
Subsidy Laws:
The project shall comply with the State of Minnesota business subsidy laws unless one
of the exceptions is applicable.
HRA
Commitment:
Use of unobligated TIF funds is subject to formal action by the Edina HRA at a public
meeting.
Evaluation:
Staff has been in conversation with the property owner since they were part of the team that delivered the
Market Street redevelopment known as Nolan Mains in 2020. While the Nolan Mains project was successful
in many regards, there was not room to create a new evening-oriented business that would expand the
entertainment options in the business district. This location is a good fit for such a business.
This lower level space has seen a variety of tenants over the years, but the use of this space has always been
hindered by its inability to be accessed by people with physical disabilities and are unable to use stairs. The
STAFF REPORT – Proposed Financing for Music Venue at 3916 W. 50th Street Page 4
resolution of this deficiency will allow the lower level space to be used to its full potential now and in the
future.
The terms of the Agreement will limit financial risk to the HRA while providing a reliable commitment so
that the property owner can proceed with execution of a new lease and construction.
Staff Recommendation:
Staff recommends that the HRA Board approve the preparation of a Forgivable Loan Agreement based on
the general terms attached. The proposed Agreement will be presented for full consideration at a future
HRA Board meeting.
Prepared October 23, 2023 Page 1
3916 West 50th Street
Business Term Sheet for Re-Occupancy of Lower Level
SUMMARY OF PROPOSAL
Originally constructed in 1947, this single story commercial building includes approximately 15,000
sq feet of leasable space on the street level as well as an additional level of potentially leasable
space in the lower level. The lower level has been used for a variety of purposes as the tenants
have changed in the building. Most of the building is currently leased to retail and restaurant
tenants. A single two-level space remains vacant. The productive use of that space is hindered by
the lack of handicapped access to the lower level.
The property owner is pursuing a new restaurant tenant that also features live music to
compliment the food and beverage. The property owner estimates that the cost to update and
enhance the space for modern tenants is about $1.1 million.
The property owner attests that without financial participation by the City, their efforts to
revitalize and reoccupy this vacant space for an evening destination use will not be possible. The
HRA has the ability to provide one-time financial support for permanent improvements so that a
new business can locate in Edina. Financial support with SPARC funds will create new jobs,
increase the tax base and establish a destination for residents and other customers.
PROPERTY OWNER PROSPECTIVE TENANT
Buhl 3906, LLC
c/o Buhl Investors
5100 Eden Avenue, Suite 317
Edina, MN 55436
A restaurant with liquor license and live
music. Owner and operator to be
determined
LEASE TERMS
The owner and tenant intend to enter into a 10-year lease with at least one renewal option. Lease
execution is contingent upon pledge of financial support from the HRA. The lease is anticipated to
allow for a re-opening in second quarter of 2025.
OWNER AND TENANT INVESTMENT
Extensive renovations are required to transform the outdated space to a condition where it is
capable of serving all patrons regardless of ability. Improvements are necessary to portions of the
exterior of the building and interior spaces on the main and lower level.
Prepared October 23, 2023 Page 2
Both Property Owner and Tenant will share in the expenses required to substantially renovate the
facility. The cumulative investment is estimated to be approximately $1.1 million. The construction
work will be carried out over several months.
The Owner and Tenant will use equity as well as traditional debt to fund the initial construction
and ongoing operations. Support from the HRA has been requested to reimburse the Owner for
the one-time construction expenses , like elevator/lift, ventilation systems, plumbing and carpentry
so that the shell building can provide permanent accessibility regardless of who the operator is.
HRA FINANCIAL CONTRIBUTION
The Edina HRA will provide financial contributions to make the substantial renovation of this
vacant facility possible. This support will create construction jobs and will result in permanent job
creation when the facility becomes operational. The HRA financial support includes:
1. Up to $225,000 forgivable loan to Property Owner (SPARC/TIF funds anticipated subject
to Public Hearing and formal action)
2. Payment subject to executed forgivable loan documents and confirmation of qualified
expenses incurred
3. Qualified expenses will be formally identified in the loan documents and are anticipated to
include items such as:
a. Improvements to the interior spaces and exterior entrances to address ADA and
MN Accessibility Code requirements for a new commercial space; including
permanent improvements such as: elevator or lift, accessible entrances, accessible
route, accessible toilets
b. Improvements to the building enclosure to improve energy efficiency and noise
control
c. Improvements to exterior shell of the building, such as security camera systems and
exterior water spigot for use by District Maintenance crew
d. Improvements to the ventilation system
4. The loan will be forgivable after the work is complete AND after the tenant begins
operations. If the tenant begins operations and remains in operation by 11/30/2025, the
loan shall be forgiven in full. If the tenant begins operations but ceases operations prior to
the required date, only 50% of the loan will be forgiven. If the tenant fails to begin
operations by 11/30/2025 the loan shall be repaid in full.
5. All brick and mortar improvements funded with HRA monies (elevator/lift, accessible
bathrooms, ventilation systems, exterior enclosures, etc) must stay with the building
throughout the term of the initial lease unless written consent received from HRA
Executive Director to remove them
Prepared October 23, 2023 Page 3
6. Total public investment (including Property Owner reimbursement and public
improvements) shall not exceed 50% of the total investment of the Property Owner.
7. Miscellaneous Conditions for Tenant
a. Membership in Business Association anticipated
b. Participate in shared recycling and composting programs
c. Coordinate seasonal outdoor music in the adjacent public plaza in cooperation with
the City and Business Association
d. Cooperate with Edina and Twin City based non-for-profits to allow use of the space
during non-traditional business hours for meetings and similar small scale events.
Terms for such activities shall be formally identified in the loan documents and
presume that use of the facilities to be provided to eligible groups at below-market
rates that cover the tenant’s operational costs of the special event. All such special
events to be scheduled at mutually agreeable times and the use rates may change
depending on the day and time of the special event and any fee charged by the non-
for-profit holding the special event.
8. Additional SPARC funds may also be used to complete public improvements to adjacent
public sidewalks subject to required Public Hearing
a. Public improvements to be bid, contracted and managed by City and will not be
assessed to the 50th & France Maintenance Assessment District
b. Scope of work shall be limited to public sidewalks (including landscaping and
streetscaping elements) required for access to the tenant space and customers of
the tenant
c. Total cost of this sidewalk work shall not exceed $50,000
d. This work does NOT grant any special use privileges to property owner, tenant or
customers that are not otherwise available to the general public.
e. Sidewalk work should be completed prior to the occupancy of the tenant space but
no later than 12/31/2025
END
Prepared October 23, 2023 Page 4
EXISTING CONDITIONS
Prepared October 23, 2023 Page 5
PRELIMINARY LAYOUT OF LOWER LEVEL
Prepared October 23, 2023 Page 6
PRELIMINARY CONCEPT RENDERINGS
** Preliminary – not for construction **
Proposed Forgivable Loan for
Music Venue at 3916 W. 50th Street
Presentation to:
Edina HRA Board
October 26, 2023
Housing & Redevelopment Authority
Overview
•Experienced local developer planning a $1.1 M
investment in Edina
•Project will create new jobs, enable new
business and increase tax base
•Project has financial gap
•Edina’s SPARC program can provide funds to
address this situation
•Staff and developer have prepared initial Term
Sheet
•Staff seeks authorization to prepare Forgivable
Loan Agreement for future consideration
Housing & Redevelopment Authority
The
Site
Housing & Redevelopment Authority
Nolan Mains
US
Bank
Lunds &
Byerlys
D’Amico
Edina
Theatre
3916 W.
50th Street
Edina
Grill
Pajarito
W. 50 th Street
France Avenue
Existing Conditions
Housing & Redevelopment Authority
50th Street Exit Door Main Entrance near Nolan Mains Plaza
Existing Conditions
Housing & Redevelopment Authority
The Project
Housing & Redevelopment Authority
The Project
Housing & Redevelopment Authority
The Problem
•Lack of ADA accessibility to
lower level
•High cost of ADA lifts and
facilities in old building
•Costs deter successful business
operations
•$225k financial gap
Housing & Redevelopment Authority
HRA Objectives and SPARC Outcomes
•Support new businesses and investment in Edina
•Increase the property tax base
•Create permanent jobs and construction jobs
•If possible, deliver other benefits to the general public
Housing & Redevelopment Authority
Special Project Fund Available
Edina established the SPARC program in 2021.
This program uses unallocated TIF monies to
assist businesses who are reconstructing
commercial and industrial sites and deliver new
jobs, stabilized tax base and other public benefits
Housing & Redevelopment Authority
Summary of Terms
Housing & Redevelopment Authority
•Project Cost: approx. $1,100,000
•Loan Amount: approx. $225,000
•Timing of Project: 2024-25
•Disbursement of Funds: paid after
evidence of eligible expenses
•Eligible Expenses: labor and material
costs related to improving ADA access
to the main level and lower level of
the building, including elevators, lifts,
bathrooms, entrance doorways, etc.
Also exterior improvements for
energy efficiency, security and interior
ventilation
•In-eligible Expenses: soft costs,
furnishings, operational expenses,
start-up costs
•Conditions of Forgiveness: complete
project, secure tenant, continue
operations until 11/30/2025
•Other Conditions: provide exterior
water spigot, coordinate seasonal
outdoor music in the public plaza
•Misc. Expenses: up to
$50k may also be
used for
improvements to the
adjacent sidewalks
and public areas, if
necessary
Administering the Loan
Step 1 – Owner Responsibilities
•Execute lease
•Secure private funding
•Constructs the project
Step 2 – Certifying Completion
•HRA reviews eligible costs
•HRA reviews lien waivers
•HRA confirms occupancy
Housing & Redevelopment Authority
Step 3 – HRA Issues Funds
•HRA provides reimbursement
after completion
Step 4 – Loan Satisfaction
•Loan is forgiven or repaid based
on future outcomes
Next Steps
Housing & Redevelopment Authority
With authorization by the HRA Board, several steps are required before funding can be
provided. Next steps include:
1)Prepare complete forgivable loan agreement
•Review with mortgage holder
•Review MN business subsidy requirements
2)Hold public hearing
3)HRA Board to consider approval of loan agreement
Staff recommends that
the HRA Board
authorize preparation
of Forgivable Loan
Agreement for
consideration at future
meeting
Discussion or Questions
Housing & Redevelopment Authority