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2021-07-29 HRA Regular Meeting Packet
Agenda Edina Housing and Redevelopment Authority City of Edina, Minnesota City H all, Council Cham bers Thursday, July 29, 2021 7:30 AM Watch the m e eting on ca ble TV or at EdinaMN .gov/Live Me etin gs or Facebook.com /Edin aMN . To participate in Community Comment: Call 800-374-0221. Enter Conference ID 3062846. Give the operator your name, street address and telephone number. Press *1 on your telephone keypad when you would like to get in the queue to speak. A City sta9 member will introduce you when it is your turn. Or attend the meeting to provide testimony, City Hall Council Chambers, 4801 W. 50th St. I.Call to Order II.Roll Call III.Pledge of Allegiance IV.Approva l of Meeting Agenda V.Community Comment During "Community Comment," the Edina Housing and Redev elopment 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 ma y limit the number of speakers on the same issue in the interest of time and topic. Generally spea king, 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 ma tter to sta. for consideration at a future meeting. VI.Adoption of Consent Agenda All a genda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separa te discussion of such items unless requested to be remov ed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be remov ed from the Consent Agenda and considered immediately following the a doption of the Consent Agenda. (Favorable rollcall v ote of majority of Commissioners present to approve.) A.Dra ft Minutes of Regula r Meeting June 24, 2021 B.Approv e Payment of Cla ims VII.Reports/Recommendations: (Fa v orable vote of majority of Commissioners present to approve except where noted) A.Resolution No. 2021-06: E stablish 4040 West 70th Street Tax Increment Financing District and Modify Southdale 2 Tax Increment Financing Plan B.Resolution No. 2021-07: Ca ll for a public hearing on the proposed morti?cations to the redevelopment plan for the Southeast Edina Redevelopment Project a rea a nd and Southdale 2 Ta x Increment Financing Pla n. C.5146 Eden Avenue - Redev elopment Planning D.4917 Eden Ave - Project Update E.Gra ndv iew East - Potentia l Tra nsportation Improvements VIII.HRA Commissioners' Comments IX.Executive Director's Comments X.Adjournment The Edina Housing and Redevelopment Authority wants a ll participants to be comforta ble being part of the public process. If you need assistance in the way of hearing ampli?ca tion, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: July 29, 2021 Agenda Item #: VI.A. To:C hair & C ommissioners of the Ed ina HR A Item Type: Minutes F rom:Liz O ls on, Adminis trative S uppo rt S p ecialist Item Activity: Subject:Draft Minutes o f R egular Meeting June 24, 2021 Ac tio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O 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 regular minutes of J une 24, 2021. I N TR O D U C TI O N : S ee attached meeting minutes of June 24, 2021. AT TAC HME N T S : Description HRA June 24, 2021 Draft Meeting Minutes Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JUNE 24, 2021 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, Jackson, Pierce, Staunton, and Chair Hovland. Absent: None. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Anderson, seconded by Commissioner Jackson, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED - AS AMENDED Member Staunton made a motion, seconded by Member Pierce, approving the consent agenda as amended, removing Item VI.D to be considered in conjunction with Item VII.B.: VI.A. Approve minutes of the Regular Meeting June 10, 2021 VI.B. Approve Payment of Claims, HRA Check Register dated March 2020-April 2021, totaling $506,500.75 VI.C. Approve Payment of Claims, HRA Check Register dated May 2021, totaling $222,401.93 VI.D. Request for Purchase, awarding bid to the lowest bidder, Grandview Pedestrian Bridge, associated vendors as presented, $2,783,609.14 Rollcall: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA – ITEM DISCUSSED AFTER ITEM VII.B VI.D. REQUEST FOR PURCHASE, AWARDING BID TO THE LOWEST BIDDER, GRANDVIEW PEDESTRIAN BRIDGE, ASSOCIATED VENDORS AS PRESENTED, $2,783,609.14 – APPROVED The Commission shared concerns about ensuring the plan would dovetail within the plan and be flexible and take advantage of the lawn on the north side. They shared the intent to entice the south development and how this should not be a barrier and that the span of bridge needed to be far enough west. They spoke about how parking and access to the site would be critical and how the elevator would be useful even though expensive then spoke about how design elements were site Minutes/HRA/June 24, 2021 Page 2 driven and well as the railroad. They recognized that the elevator could not be incorporated into the current design but could be in the future. Mr. Neuendorf explained the design in further detail then spoke about the grade and other railroad restrictions for fencing, etc. including a roof then outlined the upcoming next day deadline for decision. Commissioner Staunton left the meeting. The Commission recognized the frustration to act today in order to use the TIF funds but how they did not have the project finalized that would meet most of the proposed standards, including a covered bridge. They spoke about the TIF improvements to the site which ultimately benefitted the developer and suggested they consider access to the site and the need to allow revisions in the future. Commissioner Pierce made a motion to adopt Resolution No. 2021-04; Requesting Public Hearing for August 4, 2021, for 4040 W. 70th Street Tax Increment Financing District. Commissioner Anderson seconded the motion. Rollcall: Ayes: Commissioners Anderson, Jackson, Pierce, and Chair Hovland Absent: Commissioner Staunton Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. RESOLUTION NO. 2021-05; SUPPORTING SENIOR AFFORDABLE HOUSING AT 4040 W. 70TH STREET USING TAX INCREMENT FINANCING – ADOPTED Affordable Housing Development Manager Hawkinson explained financing for affordable housing was complex and outlined the annual funding application deadlines that must be met to avoid waiting a full year for the next application cycle. She said HRA Resolution No. 2021-05 stated the HRA would consider providing TIF financing for the development of 4040 W. 70th Street but in order to do so, there would be a public hearing on August 4 regarding the creation of a Housing TIF District for the Cornelia View apartment project. She reviewed the need for public funding and resulting gap then outlined affordable housing finance tools and the benefit of early funds committed. The Southeast Edina Redevelopment Project Area was modified in 2019 to allow for Southdale 2 TIF Pooled funds to be used for the acquisition of 4040 W. 70th. For those funds to be exchanged with Southdale 2 TIF Special Legislative Funds that sunset on December 31, 2021 and to capture new increment, a new Housing TIF District will need to be created. Ms. Hawkinson said Resolution 2021-05 would authorize the use of TIF increment subject to the Housing TIF District being approved and was being brought before the HRA prior to August 4 to support the developer's funding applications. The Commission asked how the financing fit in with the proposed west promenade, subsidizing for profit development, and how to interpret gross revenue from the apartment project to ensure the funds were only being used to subsidize the project and not for revenue loss. Ms. Hawkinson responded how that would have to be a separate discussion because preliminary discussions determined TIF funds for this project would not be eligible. Executive Director Neal shared the City had multiple revenue sources to use for the west promenade, in particular transportation funds such as the Centennial Lakes TIF. He said part of the exercise was the conventional method of funding affordable housing pyramids to state agencies and how the City was helping developers pursue dollars to entice them to come to Edina that also showed funding agencies the importance of development to the City. Minutes/HRA/June 24, 2021 Page 3 The Commission agreed this action was important to the senior housing community as it would provide affordable housing for 99 years and was not merely about developer subsidy. Commissioner Staunton made a motion to adopt Resolution No. 2021-05; Supporting Senior Affordable Housing at 4040 W. 70th Street Using Tax Increment Financing. Commissioner Jackson seconded the motion. Rollcall: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII.B. 5146 EDEN AVENUE – REDEVELOPMENT PLANNING – REVIEWED Economic Development Manager Neuendorf shared this item pertained to the redevelopment of the vacant property owned by the HRA located at 5146 Eden Avenue. He said staff requested additional direction be provided on the desired outcomes of the site so prospective operators could be effectively identified. He outlined how the site was proposed to be subdivided into north and south parcels, construct a pedestrian bridge and sidewalk along north edge, widen Arcadia Avenue, and apply the City’s seven guiding principles. He outlined the south parcel could include multi-family ownership as senior cooperative housing with internal parking and shared access and parking for the north parcel. He outlined the five proposed components that included a restaurant with indoor/outdoor public activity, consideration of for sale property if no valid lease options were identified, seamless outdoor connection between the pedestrian bridge and senior coop, utilize parking in the adjacent Grandview ramp, and apply a maintenance district for shared expenses. Mr. Neuendorf reviewed needs of the HRA to achieve this vision that included a purchase agreement with the senior cooperative, a developer coordinator, modified parking agreement, and prepared maintenance budget then reviewed potential processes to select prospects in detail. He said the Commission was asked to further refine direction on the northern portion of the site and identify pros and cons of different types of users and need for items such as parking and restaurant/food offerings as well as operation/maintenance of site. Dave Anderson, Franuenshuh, spoke about the proposed dining hospitality and activation of the site and the creation of an experience for the community of all ages. He shared materials that included glass that would create transparency and draw people into the site by providing more outdoor dining options and other elements such as movie nights, festivals and other gatherings. Mr. Anderson spoke about the need to manage the grade and many other elements for a multi-use development. Bill Catter, United Properties, spoke of their intent to create a draw and anchor for the City and what could become unique and meet what was missing in Edina. He said he was confident the use could be compatible and a catalyst for other development then outlined highlights that would assist in getting people together by creating increased outdoor space. The Commission asked about the possibility of a future ground lease. They said they liked the south half with a coop concept, the number of units, and proposed affordability still being finalized but the north half needed direction. They liked what was presented then spoke about the need for some surface parking further south along with the restaurant with housing in the south. The Commission supported the proposed activities and terraced feel of Arcadia with a full-service restaurant year- round but asked if 30 stalls was reasonable. The Commission liked the proposal overall and stated this was only to be done once and wanted to ensure this was the right direction then spoke about how detailing the site was very important. They said parking would be driven by what was placed there then spoke about the lack of on street parking and how the ramp would play into the plan with the need for a pedestrian bridge. They identified one issue was lack of visibility of the site but liked the lawn on the north side and connection of the bridge with a small amphitheater for concerts. Minutes/HRA/June 24, 2021 Page 4 Commissioner Pierce left the meeting. VIII. HRA COMMISSIONERS’ COMMENTS – Received IX. EXECUTIVE DIRECTOR’S COMMENTS – Received IX.A. 7001 FRANCE AVENUE – PROJECT UPDATE IX.B. 4917 EDEN AVENUE – PROJECT UPDATE X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Anderson, to adjourn the meeting at 9:22 a.m. Roll call: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Absent: Commissioner Pierce, Staunton Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: July 29, 2021 Agenda Item #: VI.B. To:C hair & C ommissioners of the Ed ina HR A Item Type: C laims F rom:Don Uram, F inanc e Direc tor Item Activity: Subject:Approve P ayment of C laims Ac tio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : M otion to approve payment of claims for H R A C heck R egister 06.2021 T O TAL $135,619.64. I N TR O D U C TI O N : P ayment of claims are attached. AT TAC HME N T S : Description HRA Check Regis ter 06.2021 TOTAL $135,619.64 City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 07/21/2021 15:29 User: LJefferson Program ID: apinvgla Page 1 YEAR/PERIOD: 2021/6 TO 2021/6 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION 26026000 HRA Administration 26026000 2066 HRA Admin - OthrEscrow 100049 EHLERS AND ASSOCIATE 87073 0 2021 6 INV P 5,673.75 20210709 462195 100730 DORSEY & WHITNEY LLP 3669379 0 2021 6 INV P 1,005.00 20210709 462193 100730 DORSEY & WHITNEY LLP 3669380 0 2021 6 INV P 2,175.50 20210709 462193 3,180.50 ACCOUNT TOTAL 8,854.25 26026000 6136 HRA Admin - PrfSvOther 100049 EHLERS AND ASSOCIATE 87075 0 2021 6 INV P 446.25 20210709 462195 123129 TIMESAVER OFF SITE S #M26506 0 2021 6 INV P 482.00 20210709 462341 May 6 HRA WS ACCOUNT TOTAL 928.25 ORG 26026000 TOTAL 9,782.50 26126100 Centennial TIF 26126100 6136 Cent TIF - PrfSvOther 100049 EHLERS AND ASSOCIATE 87077 0 2021 6 INV P 446.25 20210709 462195 ACCOUNT TOTAL 446.25 ORG 26126100 TOTAL 446.25 26126103 Southdale 2 TIF 26126103 6103 SoDa 2 TIF - Prof Svrs 100049 EHLERS AND ASSOCIATE 87074 0 2021 6 INV P 382.50 20210709 462195 ACCOUNT TOTAL 382.50 26126103 6131 SoDa 2 TIF - PrfSvLegal 100730 DORSEY & WHITNEY LLP 3669381 0 2021 6 INV P 1,569.00 20210709 462193 Metro HRA Contracts ACCOUNT TOTAL 1,569.00 ORG 26126103 TOTAL 1,951.50 26126106 Grandview 2 TIF 26126106 6715 Grnd 2 TIF - CapInfrast 100643 BARR ENGINEERING CO 23271827.01-5 0 2021 6 INV P 5,233.50 20210709 462162 100664 BRAUN INTERTEC CORPO B254981 0 2021 6 INV P 8,124.00 20210709 462175 ENG 21-6 Grandview 100995 SHORT-ELLIOT-HENDRIC 406151 0 2021 6 INV P 23,181.89 20210709 462322 ENG 21-6 Eden Ave/B 124002 KIMLEY-HORN AND ASSO 18995816 0 2021 6 INV P 85,000.00 20210702 460975 ENG 21-6 Grandview 132751 WARNING LITES OF MIN 227012 0 2021 6 INV P 1,900.00 20210618 460566 Traffic control for City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 07/21/2021 15:29 User: LJefferson Program ID: apinvgla Page 2 YEAR/PERIOD: 2021/6 TO 2021/6 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION ACCOUNT TOTAL 123,439.39 ORG 26126106 TOTAL 123,439.39 FUND 2600 Housing & Redvlpmt Authority TOTAL: 135,619.64 ** END OF REPORT - Generated by Lonnia Jefferson ** Date: July 29, 2021 Agenda Item #: VI I.A. To:C hair & C ommissioners of the Ed ina HR A Item Type: R ep o rt / R ecommend atio n F rom:S tep hanie Hawkins o n, Affo rd able Ho us ing Develo p ment Manager Item Activity: Subject:R es olution No. 2021-06: Es tablis h 4040 Wes t 70th S treet Tax Inc rement F inanc ing Dis tric t and Modify S outhd ale 2 Tax Increment F inanc ing P lan Ac tio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : Adopt R esolution N o. 2021-06. I N TR O D U C TI O N : T his item pertains to the creation of a new Tax I ncrement F inancing D istrict to support the redevelopment of property at 4040 West 70th S treet including the creation of approximately 118 units of affordable rental housing. T his item also includes a modification to the P lan for the existing S outhdale 2 Tax I ncrement F inancing District to recognize the new T I F D istrict and to enable pooling necessary to provide financial support for affordable housing in Edina. I mplementation of this resolution is contingent upon final approval by the C ity C ouncil after a public hearing scheduled for August 4, 2021. S taff recommends the approval of this Resolution. AT TAC HME N T S : Description Staff Report Res olution 2021-06 Southdale 2 TIF Plan Staff Report - Wes t Promenade Pres entation July 29, 2021 Board of the Edina Housing and Redevelopment Authority Stephanie Hawkinson, Affordable Housing Development Manager Resolution 2021-06: Establish 4040 West 70th Street Tax Increment Financing District and Modify Southdale 2 Tax Increment Financing Plan. Information / Background: On December 17, 2019 the City Council approved Resolution 2019-116 following a Public Hearing on modifying the Southeast Edina Redevelopment Project Area TIF Plan to allow Southdale 2 Tax Increment Financing (TIF) Pooled funds to be used for the acquisition of 4040 W. 70th Street acquisition (“Site”). Subsequently the HRA approved a $3,650,000 loan to the Edina Housing Foundation (“Foundation”) using Southdale 2 TIF pooled funds as the source. On June 24, 2021 the HRA adopted Resolution No. 2021-05 to support senior affordable housing at the Site through the use of Tax Increment Financing, contingent upon City Council adoption of a supporting Resolution following the August 4, 2021 Public Hearing. After executing a loan agreement with the HRA in May 2020, the Foundation acquired the Site and selected an affordable housing developer through a competitive Request for Qualifications process. The Foundation selected Lupe Development Partners together with Ecumen (“Developer”) to develop 118-units of 100% affordable, age-restricted housing (Development). The Foundation and Developer entered into a Ground Lease to keep the development affordable for 99-years. The Planning Commission is confirming that the proposed development complies with the 2040 Comprehesive Plan at their July 28, 2021 meeting. The purpose of Resolution 2021-06 is to establish a new housing TIF district and modify the Southdale 2 TIF plan. No loan amounts will be discussed at this time. The financing of 4040 West 70th Street will be discussed at a future meeting. STAFF REPORT Page 2 The Use of TIF in Edina TIF is one financing tool that brings either redevelopment proposals or affordable housing developments to fruition. An analysis is completed that demonstrates that “but for” the TIF financing, the proposed development could not occur. To capture the new tax increment that is made available because of the proposed development, a district boundary must be defined and a District created. For 4040 W. 70th Street the boundary is the legal boundaries of the parcel. In Edina there are eight active TIF Districts, which include both redevelopment TIF and Housing TIF: 1. Southdale 2 2. Pentagon Park 3. Grandview 2 4. 66 West 5. 50th & France 2 6. 44th & France 2 7. 4100 W. 76th St 8. Amundson Flats In 2021 5% of the City’s tax capacity is retained in TIF Districts. This compares to 9.7% in Richfield; 6.8% in Bloomington; 13% in Wayzata, and 1.9% in Eden Prairie. A vast majority of the retained tax capacity is in the Southdale 2 TIF District. When that District expires at the end of 2021, only 1% of Edina’s property tax capacity will be retained within TIF districts, even with the addition of the 4040 West 70th Street TIF District. Tax Increment Financing Plan Two aspects of Tax Increment Financing are being requested for this Development: Southdale 2 TIF pooled funds for the acquisition of the site and TIF as a funding source for the development of the 118 units of affordable housing. There are two components to the Southdale 2 TIF pooled funds: 1) “Regular” housing pooled funds and 2) Special Legislation pooled funds. “Regular” housing pooled funds were used to acquire the Site because at the time we did not know the specifics of the final development. At the time, December 2019, the intent was to swap out the use “regular” pooled funds with the “Special Legislation” pooled funds once a developer was selected and a development plans received preliminary site plan approval. “Regular” Housing Pooled Funds: Initially for the acquisition of 4040 W. 70th until an approved development plan. STAFF REPORT Page 3 The HRA may use funds under the Southdale 2 TIF pooling authorities as direct expenditures or grants/loans for acquisition, site preparation, construction, rehabilitation or public improvements directly related to qualifying affordable housing projects. Special Legislation Pooled Funds: To now use for 4040 W. 70th Street as the plan received preliminary approval. In 2014, the City secured special legislation to create new Housing TIF Districts and pool some of the Southdale 2 incremental property taxes to support their creation of new affordable housing in Edina. The legislation was later amended in 2017 and 2019 to extend the time period to create new TIF Districts, which currently sunsets at the end of 2021. In order to use the Southdale TIF 2 Special Legislation Funds, a new Special Legislation Housing TIF District must be created by the end of 2021. The following tables shows the transfer of funds from Regular Pooled Funds to Special Legislative Pooled funds. Special Legislation Estimated Balance Requests Repayments Starting Pooling Capacity $7,485,831 4100 Edina ($2,900,000) $500,000 Amundson Flats ($1,300,000) $600,000 4040 W. 70th Street ($3,650,000) Ending Balance $735,831 Regular Pooled Funds Estimated Balance Requests Repayment Starting Pooling Capacity $7,832,295 66 West ($275,000) 7008 Sandell ($350,000) 4040 W. 70th Street ($3,650,000) $3,650,000 Metro HRA ($2,000,000) Future Funding Capacity $5,207,295 Ehlers Associates, the City’s public finance advisor has prepared a Tax Increment Financing Plan to establish the parameters of the new TIF District. The Plans have been reviewed by the City’s special counsel for redevelopment matters, Dorsey & Whitney, to ensure compliance with State Law. The draft Tax Increment Financing Plan must establish a budget for the TIF District. Ehlers’ analysis estimates that incremental taxes from the new TIF District, if carried to its maximum term, will provide STAFF REPORT Page 4 approximately $3.2M in increment over 21-years, which translates to $1.8M in upfront construction proceeds. Public Notice Notices regarding these Plans have been distributed to affected taxing agencies, including the Edina School District, and Hennepin County in accordance with the process identified in State Law. As of the writing of this staff report, no concerns have been expressed regarding the creation of the 4040 West 70th Street TIF District. Redevelopment Agreement The Developer is actively applying for financing for the development of this housing project. Financing should be in place in late 2022. Once all financing is secured, staff will present a Term Sheet followed by a Redevelopment Agreement for approval. A Term Sheet and Loan Agreement for the acquisition of the Site were previously approved in 2019 prior to site acquisition by the Foundation. Compliance with Approved City Plans The proposed Development aligns with the mission and purpose of the Edina HRA and is consistent with the City’s Comprehensive Plan to provide an additional 1,804 new affordable units by 2030. The creation if a TIF District and the use of TIF financing is a tool that the City can use to help achieve our goals. 1. Greater Southdale District Plan The Greater Southdale District Plan supports the development of affordable age-restricted housing at 4040 W. 70th Street. In addition to the site being zoned appropriately, the plan states the following: The Greater Southdale District has an important role to play in accommodating expected housing growth. Already an area characterized by high density residential and mixed-use development, it is guided for additional infill development of a similar or higher intensity. The presence of jobs, retail and services, transit, and public amenities means this area contains the elements for a complete community, which can leverage these advantages for a convenient and accessible lifestyle for a range of household types. Affordable housing is a necessary component of the housing mix. This is especially true given the demographic future of Greater Southdale. The expected growth in the senior population and the desire to attract young workers and families both point to the need to have more affordable housing, including options for those that might choose to move here from other parts of the community. (pg 85) STAFF REPORT Page 5 2. Advancing Housing Priorities in Edina (Housing Strategy Task Force Report) The Housing Strategy Task Force Reports supports the development of affordable senior housing. Two of the three key principles state: • Housing Choice: Support the development of a wide range of housing options to meet the diverse needs and preferences for the existing and future Edina community. • Affordability: Encourage the development and maintenance of diverse housing options affordable to residents at a range of incomes and life stages. The Report states a priority should be to develop 199 new units of affordable rental housing for seniors (pg. 3). This is supported by the MaxField Study that was completed in 2020 that states there is a demand for 553 new units of independent congregate living for seniors and 576 new units of affordable housing for active seniors. Staff recommends that the HRA approve Resolution No. 2021-06 to demonstrate its commitment to creating new affordable housing in Edina and direct staff to engage an attorney to draft a Redevelopment Agreement. RESOLUTION NO. 2021-06 ESTABLISHING THE 4040 WEST 70th STREET TAX INCREMENT FINANCING DISTRICT AND APROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Edina Housing and Redevelopment Authority (the "HRA") and the City of Edina (the "City") that the HRA adopt a Modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for the Southeast Edina Redevelopment Project Area (the "Project Area") to establish the 4040 West 70th Street Tax Increment Financing District (the "District") and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794, inclusive, as amended (the "Act"), and Minnesota Session Laws 2014, Chapter 308, Article 6, Section 8, as amended by Minnesota Session Laws 2017, First Special Session Chapter 1, Article 6, Sections 11 and 16 and Minnesota Session Laws 2019, First Special Session Chapter 6, Article 7, Section 3 (the “Special TIF Housing Legislation”) all as reflected in the Plans and presented for the Board's consideration; and WHEREAS, the HRA has investigated the facts relating to the Plans and has caused the Plans to be prepared; and WHEREAS, the HRA has performed all actions required by law to be performed prior to the adoption of the Plans. The HRA has also requested the City Planning Commission to provide for review of and written comment on Plans and that the Council schedule a public hearing on the Plans upon published notice as required by law. NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The HRA hereby finds that the District is in the public interest and is a "housing district" under Minnesota Statutes, Section 469.174, Subd. 11 and the Special TIF Housing Legislation, finds that the adoption of the proposed Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota for affordable and high-quality housing and thereby serves a public purpose. 2. The HRA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. The boundaries of the Project Area are not being expanded. 4. The reasons and facts supporting the findings in this resolution are described in the Plans. 5. The HRA elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution would be taken from inside the District. 6. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the Executive Director of the HRA. 7. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a development agreement with any developer. 8. Upon approval of the Plans by the City Council, the Executive Director of the HRA is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 9. The Executive Director of the HRA is authorized and directed to forward a copy of the Plans to the Hennepin County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 469.177. Approved by the Board on July 29, 2021. ATTEST: _______________________________ James B. Hovland, Chair _______________________________ James Pierce, Secretary STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF EXECUTIVE DIRECTOR I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of July 29, 2021, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, 2021. Executive Director Adoption Date: August 4, 2021 Edina Housing and Redevelopment Authority City of Edina, Hennepin County, Minnesota MODIFICATION TO THE REDEVELOPMENT PLAN Southeast Edina Redevelopment Project Area & Tax Increment Financing (TIF) Plan Establishment of 4040 West 70th Street Tax Increment Financing District (a housing district) BUILDING COMMUNITIES. IT’S WHAT WE DO. Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 TABLE OF CONTENTS Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1 FOREWORD 1 MUNICIPAL ACTION TAKEN 1 Tax Increment Financing Plan for the 4040 West 70th Street Tax Increment Financing District 4 FOREWORD 4 STATUTORY AUTHORITY 4 STATEMENT OF OBJECTIVES 4 REDEVELOPMENT PLAN OVERVIEW 5 DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED 5 DISTRICT CLASSIFICATION 6 DURATION & FIRST YEAR OF DISTRICT’S TAX INCREMENT 6 ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS 6 SOURCES OF REVENUE/BONDS TO BE ISSUED 8 USES OF FUNDS 8 FISCAL DISPARITIES ELECTION 9 ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 9 SUPPORTING DOCUMENTATION 12 DISTRICT ADMINISTRATION 12 Appendix A: Map of Southeast Edina Redevelopment Project Area and the TIF District 13 Appendix B: Estimated Cash Flow for the District 14 Appendix C: Findings Including But/For Qualifications 15 Appendix D: Project Description 17 Appendix E: Special TIF Housing Legislation 18 Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 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 previously set forth in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. Generally, the substantive changes include the establishment of the 4040 West 70th Street Tax Increment Financing District. MUNICIPAL ACTION TAKEN Based upon the statutory authority described in the Redevelopment Plan, the public purpose findings by the City Council and for the purpose of fulfilling the City’s development objects as set forth in the Redevelopment Plan, the City Council has created, established and designated the Southeast Edina Redevelopment Plan pursuant to and in accordance with the requirements of Minnesota Statutes, Section 469.001 to 469.047. The original and amended Southeast Edina Redevelopment Plan documents designated the Southeast Edina Redevelopment Plan as a redevelopment project and also a tax increment financing plan for tax increment districts created prior to 1988. The Centennial Lakes Tax Increment Financing District was created in 1988 pursuant to Tax Increment Financing Plan 88-1, which was subsequently renamed the Centennial Lakes Tax Increment District and referred to by Hennepin County as District #1203 and #1249. For purposes of clarification, this modification will refer to the Southeast Edina Redevelopment Plan as the Southeast Edina Redevelopment Project Area Plan pursuant to Minnesota Statutes 469.002. The following municipal action has been taken with regard to the Southeast Edina Redevelopment Project Area Plan: September 29, 1977: The Housing and Redevelopment Authority of Edina (the “HRA”) approved the Southeast Edina Redevelopment Project Area Plan. October 5, 1981: The Southeast Edina Redevelopment Project Area Plan was amended to identify project costs and bonded indebtedness incurred to finance those costs. May 6, 1985: The HRA and the City approved an amendment to the Southeast Edina Redevelopment Project Area Plan which establishes an interest reduction program and enlarges the project area to include the “1985 Project Area.” Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 2 August 19, 1985: The HRA and the City approved the First Amendment to the 1985 Amendment to the Southeast Edina Redevelopment Project Area Plan to enlarge the 1985 Project Area and authorize the issuance of additional bonds to acquire land within the enlarged 1985 Project Area. 1987: The HRA and City approved the 1987 Amendments to the Southeast Edina Redevelopment Plan to enlarge the project area to include the 1987 Project Area. 1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan to provide an Interest Reduction Program in the amount of $2,500,000 to assist in the financing and construction of housing units and authorize the HRA and City to incur additional bonded indebtedness. February 21, 2012: The HRA and City expand the Southeast Edina Project Area. April 17, 2012: The HRA and City establish the Southdale 2 Tax Increment Financing District. February 18, 2014: The HRA and City establish the Pentagon Park Tax Increment Financing District. March 2, 2016: The HRA and City establish the Grandview 2 Tax Increment Financing District. April 5, 2016: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District and establish the 66 West Tax Increment Financing District. June 20, 2017: The HRA and City establish the 50th and France 2 Tax Increment Financing District. October 16, 2018: The HRA and City establish the 44th and France 2 Tax Increment Financing District. November 20, 2018: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to increase the TIF Budget and enable special legislative pooling authority for affordable housing. November 20, 2018: The HRA and City also establish the West 76th Street Tax Increment Financing District. March 19, 2019: The HRA and City establish the 72nd and France Tax Increment Financing District. December 17, 2019: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to designate property to be acquired and establish the Amundson Avenue Tax Increment Financing District. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 3 (As Modified August 4, 2021) August 4, 2021: The HRA and City establish the 4040 West 70th Street Tax Increment Financing District. For further information, a review of the Redevelopment Plan for the Southeast Edina Redevelopment Project Area is recommended. It is available from the HRA Executive Director at the City of Edina. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Southeast Edina Redevelopment Project Area. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 4 Tax Increment Financing Plan for the 4040 West 70th Street Tax Increment Financing District FOREWORD The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina (the "City"), staff and consultants have prepared the following information to establish the 4040 West 70th Street Tax Increment Financing District (the "District"), a special housing tax increment financing district located in Southeast Edina Redevelopment Project Area. STATUTORY AUTHORITY Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.001 - 469.047, inclusive, as amended (the “HRA Act”), M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), and Minnesota Session Laws 2014, Chapter 308, Article 6, Section 8, inclusive, as amended (the “Special TIF Housing Legislation”), 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. STATEMENT OF OBJECTIVES The District currently consists of one (1) parcel of land and adjacent roads and internal rights-of-way. The District is being created to facilitate the development of a three-to-four story, 118-unit senior affordable housing project. Please see Appendix D for further District information. The HRA anticipates entering into an agreement with Cornelia View, LLC, a partnership between Lupe Development Partners and Ecumen, as the developer of the housing. Development is anticipated to begin as early as 2022. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Southeast Edina Redevelopment Project Area and the District. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 5 REDEVELOPMENT PLAN OVERVIEW Pursuant to the Redevelopment Plan and authorizing state statutes, the HRA or City is authorized to undertake the following activities in the District: 1. Property to be Acquired - Selected property located within the District, to include property owned by the Edina Housing Foundation or any remaining property located within the District, may be acquired by the HRA or City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the HRA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The HRA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE ACQUIRED The District encompasses all property and adjacent roads rights-of-way and abutting roadways identified by the parcels listed below. Parcel number Address Owner 30-028-24-44-0004 4040 70th St W Edina Housing Foundation Please see the map in Appendix A for further information on District location. The Edina Housing Foundation currently owns the parcel of the property to be included in the District. If deemed necessary, the HRA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the HRA or City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this TIF Plan. The HRA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 6 DISTRICT CLASSIFICATION The HRA and City, in determining the need to create a tax increment financing district in accordance with the TIF Act find that the District, to be established, is a housing district pursuant to M.S., Section 469.174, Subd. 11; M.S., Section 469.1761; and the Special TIF Housing Legislation. In meeting the statutory criteria of the TIF Act, the HRA and City rely on the following facts and findings: $ The District consists of one (1) parcel $ The development will consist of one building consisting of 118-units of multi-family rental housing $ At least 20% of the units will be occupied by individuals or households with incomes at 60% or less of area median income $ No more that 20 percent of the square footage of the building that is receiving assistance from tax increment consists of commercial, retail or other non- residential uses. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. DURATION & FIRST YEAR OF DISTRICT’S TAX INCREMENT Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to the Special TIF Housing Legislation, the duration of the District will be 20 years after receipt of the first increment by the HRA or City (a total of 21 years of tax increment). The HRA or City elects to receive the first tax increment in 2025, 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 2045, or when the TIF Plan is satisfied. The HRA or City reserves the right to decertify the District prior to the legally required date. ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2021 for taxes payable 2022. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2025) the amount by which the original value has increased or decreased as a result of: Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 7 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 2022, assuming the request for certification is made as planned prior to June 30, 2022. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Southeast Edina Redevelopment Project Area, upon completion of the project within the District, will annually approximate tax increment revenues as shown in the table below. The HRA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2025. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Estimated Project Tax Capacity (PTC) 215,124 Less: Estimated Original Net Tax Capacity (ONTC) 26,258 Less: Fiscal Disparities 0 Estimated Captured Tax Capacity (CTC)188,866 Estimated Original Local Tax Rate 107.4560%Pay 2021 Estimated Annual Tax Increment (CTC x Rate)$202,948 Percent Retainted by the HRA 100% Project Tax Capacity Note: Estimated PTC includes a 2.5% inflation factor for the duration of the District and is the estimated tax capacity of the District in year 21. The tax capacity of the District in year one is estimated to be $131,284. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 8 Pursuant to M.S., Section 469.177, Subd. 4, the HRA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the ONTC of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. SOURCES OF REVENUE/BONDS TO BE ISSUED The total estimated tax increment revenues for the District are shown in the table below: SOURCES Tax Increment 3,230,618$ Interest 161,531 TOTAL 3,392,149$ 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 achieve the objectives of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note and/or interfund loans to reimburse the Developer or HRA for the funding of qualified affodable housing 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 increments from the District in a maximum amount of $3,392,149. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. USES OF FUNDS Currently under consideration for the District is a proposal to help facilitate redevelopment of the property into 118-units of senior affordable housing. The HRA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 9 The HRA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. These estimates establish the maximum amount permitted to be expended, but the HRA and City is not obligated to expend the full amount. USES Affordable Housing 3,230,618 Administrative Costs (up to 10%)161,531 PROJECT COSTS TOTAL 3,392,149$ Interest - PROJECT AND INTEREST COSTS TOTAL 3,392,149$ The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to the TIF Act, the HRA may expend funds for qualified housing activities outside of the District boundaries. FISCAL DISPARITIES ELECTION Pursuant to M.S., Section 469.177, Subd. 3, the HRA or City may elect one of two methods to calculate any fiscal disparities contribution of commercial-industrial net tax capacity from the District. The HRA will choose to calculate fiscal disparities by clause b (inside the District). ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the HRA and City has determined that such redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 10 Entity 2020/Pay 2021 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) upon completion Percent of CTC to Entity Total Hennepin County 2,080,642,179 188,866 0.0091% City of Edina 141,273,381 188,866 0.1337% ISD 273 (Edina)115,791,268 188,866 0.1631% Impact on Tax Base if "But/For" Not Met Entity Pay 2021 Extension Rate Percent of Total Rate CTC Potential Annual Taxes Hennepin County 38.2100% 35.56% 188,866 $ 72,166 City of Edina 28.9390% 26.93% 188,866 54,656 ISD 273 (Edina)31.4740% 29.29% 188,866 59,444 Other 8.8330% 8.22% 188,866 16,683 107.4560% 100.00% $ 202,948 Impact on Tax Rates if "But/For" Not Met The estimates listed above display the estimated CTC when all construction is completed at the end of the District. The tax rate used for calculations is the Pay 2021 rate as obtained from Hennepin County. The total net capacity for the entities listed above are based on Pay 2021 figures provided by Hennepin County. The District will be certified under the Pay 2022 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment from property within the District that will be generated over the life of the District is $3,230,618; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected. 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. However, the City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities, nor staffing levels. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 11 The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction and compliant with the latest building codes. The anticipated tenants will be seniors and are more likely to bring an increase in EMS calls to the site, but the City does not expect that the proposed development, in and of itself, will necessitate additional staffing or new capital investment in vehicles or facilities. The impact of the District on public infrastructure is expected to be minimal. The development will bring new vehicle traffic to the area but is not expected to require new public infrastructure. The current infrastructure for sanitary sewer, storm sewer and water will also be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute an estimated $283,290 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 it is not expected that there will be any 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. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $946,252. The amount is calculated by multiplying the total estimated increment of $3,230,618 by the percent of the proportionate share of the total tax rate of 29.29%; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,148,767. The amount is calculated by multiplying the total estimated increment of $3,230,618 by the percent of the proportionate share of the total tax rate of 35.56%; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. At this time, no requests for additional information from the county or school district regarding the proposed development for the District have been received. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 12 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 are required in the resolution approving the District. In making said determination, reliance has been placed upon (1) written representation made by the developer to such effects; (2) review of the developer’s anticipated proforma and tax credit application materials; and (3) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the city council resolution approving the establishment of the TIF District and Appendix C. DISTRICT ADMINISTRATION Administration of the District will be handled by the HRA Executive Director and Affordable Housing Development Manager. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 13 Appendix A: Map of Southeast Edina Redevelopment Project Area and the TIF District æ ¹» æ æ æ¹»æ æ ¹º¹º ¹º ñ ñ ¹»æ æ æ ¹º ¹º æ ¹º æ æ ¹º ¹º æ æ ¹º ñ ¹» æ æ ñ æ æ æ ñ ñ ñTRACY AVEVERNON AVEWOODDALE AVEHANSEN RD70TH ST W FRANCE AVE SVALLEYVIEWRDMINNESOT A DRGLEASONRDEdina Community Center Calvin Christian School Golden Years Montessori Edina Morningside Church City Hall Edina Covenant Calvary Church St Stephen's Episcopal Colony Park Baptist St Peter's Lutheran Church & School Edina Community Lutheran Church Southview Jr High Normandale Elementary Concord School Cornelia School Southdale Library Fire Station Christ Presbyerian Church Public Works & Park Maintenance St Patrick's Catholic Calvary Lutheran Creek Valley School Fire Station St. Alban's Episcopal Valley View Jr High Edina High School Crossview Lutheran Creek Valley Baptist Colonial Church Chapel Hills Congregational Countryside School Good Samaritan Methodist Highland School Shephard of the Hills Lutheran Public Library Our Lady of Grace Church & School Normandale Lutheran M in n e h ahaCree k Nine MileC ree k N i n e M ile Cr e e k 4040 W 70th St Canadian Pacific RailroadCanadian Pacific RailroadBLAKE RDSCHAEFER RDVERN O N A VECAHILL RD66TH ST W YORK AVE SINTERLACHEN BLVD MALONEY AVE 4 4 T H S T W 50TH ST W 54TH ST W 58TH ST W 70TH ST W 76TH ST W DEWEY HILL RD VALLEY VIEW RD VALLEY VIEW RD 78TH ST W I-494 HWY 100HWY 169HWY 169HWY 100HWY 62 HWY 62 June 2021 ±Legend 4040 W 70th St TIF Boundary Southeast Edina Redevelopment Project Area 0 2,000 Feet Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 14 Appendix B: Estimated Cash Flow for the District 6/30/20214040 West 70th Street TIF DistrictCity of Edina, MN 118-unit Senior HousingASSUMPTIONS AND RATESDistrictType:HousingDistrict Name/Number: TBDCounty District #: TBDExempt Class Rate (Exempt) 0.00%First Year Construction or Inflation on Value 2023Commercial Industrial Preferred Class Rate (C/I Pref.)Existing District - Specify No. Years Remaining 21 First$150,000 1.50%Inflation Rate - Every Year:2.50%Over$150,000 2.00%Interest Rate:4.125%Commercial Industrial Class Rate (C/I) 2.00%Present Value Date:1-Aug-23Rental Housing Class Rate (Rental) 1.25%First Period Ending 1-Feb-24Affordable Rental Housing Class Rate (Aff. Rental)Tax Year District was Certified:Pay 2022First$100,000 0.75%Cashflow Assumes First Tax Increment For Development: 2025 Over$100,000 0.25%Years of Tax Increment 21 Non-Homestead Residential (Non-H Res. 1 Unit)Assumes Last Year of Tax Increment 2045 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 DisparitiesIncrementalHomestead Residential Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio 33.7094% Pay 2021 First$500,000 1.00%Fiscal Disparities Metro-Wide Tax Rate 139.5040% Pay 2021 Over$500,000 1.25%Maximum/Frozen Local Tax Rate: 107.456% Pay 2021 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)107.456%Pay 2021 State-wide Tax Rate (Comm./Ind. only used for total taxes) 35.9780% Pay 2021 Market Value Tax Rate (Used for total taxes) 0.21097% Pay 2021 Building Total Percentage Tax Year PropertyCurrent Class AfterLand Market Market Of Value Used Original Original Tax Original After ConversionMap ID PID Owner Address Market ValueValueValue for District Market Value Market Value Class Tax CapacityConversion Orig. Tax Cap.30-028-24-44-0004Edina Hsg4040 70th St W3,500,000 1,000 3,501,000 100% 3,501,000 Pay 2022 C/I Pref. 69,270 Aff. Rental 26,258 13,500,000 1,000 3,501,000 3,501,000 69,270 26,258Note:1. Base values are for pay 2022 based upon review of County website on 6.11.2021.2. Located in SD # 273 and WS #1. BASE VALUE INFORMATION (Original Tax Capacity)Area/ PhaseTax RatesPrepared by Ehlers 6/30/20214040 West 70th Street TIF DistrictCity of Edina, MN 118-unit Senior HousingEstimated Taxable Total Taxable PropertyPercentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/PhaseNew UsePer Sq. Ft./UnitPer Sq. Ft./UnitSq. Ft./UnitsValueClassTax CapacityCapacity/Unit2023202420252026Payable1Apartments 173,729 173,729 101 17,546,610Aff. Rental 94,367 934 100% 100% 100% 100% 20251Apartments 173,729 173,729 17 2,953,390 Rental 36,917 2,172 100% 100% 100% 100% 2025TOTAL20,500,000 131,284 Note:1. Market values are based upon preliminary estimates povided by the City Assessor's Office on 6.21.2021.TotalFiscal LocalLocalFiscal State-wideMarketTax Disparities Tax PropertyDisparities PropertyValue Total Taxes PerNew Use CapacityTax CapacityCapacityTaxes Taxes Taxes Taxes Taxes Sq. Ft./UnitApartments 94,367 0 94,367 101,402 0 0 19,909 121,311 1,201.10Apartments 36,917 0 36,917 39,670 0 0 6,231 45,901 2,700.04TOTAL131,2840131,284141,0720026,139167,212Note: 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 167,212less State-wide Taxes 0less Fiscal Disp. Adj. 0less Market Value Taxes (26,139)less Base Value Taxes (28,215)Annual Gross TIF 112,857 WHAT IS EXCLUDED FROM TIF?TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity)Prepared by Ehlers 6/30/2021Tax Increment Cashflow - Page 34040 West 70th Street TIF DistrictCity of Edina, MN 118-unit Senior HousingTAX INCREMENT CASH FLOWProject Original Fiscal Captured Local Annual Semi-Annual State Admin. Semi-Annual Semi-Annual PERIOD% ofTax Tax Disparities Tax Tax Gross Tax Gross Tax Auditorat Net Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36% 5% IncrementValueYrs.YearDate- - - - 02/01/24- - - - 08/01/24- - - - 02/01/25100% 131,284 (26,258) - 105,026 107.456% 112,857 56,429 (203) (2,811) 53,414 49,226 0.52025 08/01/25100% 131,284 (26,258) - 105,026 107.456% 112,857 56,429 (203) (2,811) 53,414 97,457 12025 02/01/26100% 134,566 (26,258) - 108,308 107.456% 116,384 58,192 (209) (2,899) 55,083 146,190 1.52026 08/01/26100% 134,566 (26,258) - 108,308 107.456% 116,384 58,192 (209) (2,899) 55,083 193,938 22026 02/01/27100% 137,930 (26,258) - 111,673 107.456% 119,999 59,999 (216) (2,989) 56,794 242,174 2.52027 08/01/27100% 137,930 (26,258) - 111,673 107.456% 119,999 59,999 (216) (2,989) 56,794 289,436 32027 02/01/28100% 141,378 (26,258) - 115,121 107.456% 123,704 61,852 (223) (3,081) 58,548 337,172 3.52028 08/01/28100% 141,378 (26,258) - 115,121 107.456% 123,704 61,852 (223) (3,081) 58,548 383,944 42028 02/01/29100% 144,913 (26,258) - 118,655 107.456% 127,502 63,751 (230) (3,176) 60,346 431,178 4.52029 08/01/29100% 144,913 (26,258) - 118,655 107.456% 127,502 63,751 (230) (3,176) 60,346 477,457 52029 02/01/30100% 148,536 (26,258) - 122,278 107.456% 131,395 65,698 (237) (3,273) 62,188 524,185 5.52030 08/01/30100% 148,536 (26,258) - 122,278 107.456% 131,395 65,698 (237) (3,273) 62,188 569,969 62030 02/01/31100% 152,249 (26,258) - 125,992 107.456% 135,386 67,693 (244) (3,372) 64,077 616,190 6.52031 08/01/31100% 152,249 (26,258) - 125,992 107.456% 135,386 67,693 (244) (3,372) 64,077 661,477 72031 02/01/32100% 156,055 (26,258) - 129,798 107.456% 139,476 69,738 (251) (3,474) 66,012 707,190 7.52032 08/01/32100% 156,055 (26,258) - 129,798 107.456% 139,476 69,738 (251) (3,474) 66,012 751,978 82032 02/01/33100% 159,957 (26,258) - 133,699 107.456% 143,668 71,834 (259) (3,579) 67,997 797,181 8.52033 08/01/33100% 159,957 (26,258) - 133,699 107.456% 143,668 71,834 (259) (3,579) 67,997 841,470 92033 02/01/34100% 163,956 (26,258) - 137,698 107.456% 147,965 73,982 (266) (3,686) 70,030 886,162 9.52034 08/01/34100% 163,956 (26,258) - 137,698 107.456% 147,965 73,982 (266) (3,686) 70,030 929,951 102034 02/01/35100% 168,054 (26,258) - 141,797 107.456% 152,369 76,185 (274) (3,796) 72,115 974,132 10.52035 08/01/35100% 168,054 (26,258) - 141,797 107.456% 152,369 76,185 (274) (3,796) 72,115 1,017,420 112035 02/01/36100% 172,256 (26,258) - 145,998 107.456% 156,884 78,442 (282) (3,908) 74,252 1,061,090 11.52036 08/01/36100% 172,256 (26,258) - 145,998 107.456% 156,884 78,442 (282) (3,908) 74,252 1,103,878 122036 02/01/37100% 176,562 (26,258) - 150,305 107.456% 161,511 80,756 (291) (4,023) 76,442 1,147,037 12.52037 08/01/37100% 176,562 (26,258) - 150,305 107.456% 161,511 80,756 (291) (4,023) 76,442 1,189,325 132037 02/01/38100% 180,976 (26,258) - 154,719 107.456% 166,255 83,127 (299) (4,141) 78,687 1,231,974 13.52038 08/01/38100% 180,976 (26,258) - 154,719 107.456% 166,255 83,127 (299) (4,141) 78,687 1,273,762 142038 02/01/39100% 185,501 (26,258) - 159,243 107.456% 171,116 85,558 (308) (4,263) 80,988 1,315,903 14.52039 08/01/39100% 185,501 (26,258) - 159,243 107.456% 171,116 85,558 (308) (4,263) 80,988 1,357,192 152039 02/01/40100% 190,138 (26,258) - 163,881 107.456% 176,100 88,050 (317) (4,387) 83,346 1,398,824 15.52040 08/01/40100% 190,138 (26,258) - 163,881 107.456% 176,100 88,050 (317) (4,387) 83,346 1,439,616 162040 02/01/41100% 194,892 (26,258) - 168,634 107.456% 181,208 90,604 (326) (4,514) 85,764 1,480,742 16.52041 08/01/41100% 194,892 (26,258) - 168,634 107.456% 181,208 90,604 (326) (4,514) 85,764 1,521,037 172041 02/01/42100% 199,764 (26,258) - 173,506 107.456% 186,443 93,222 (336) (4,644) 88,242 1,561,659 17.52042 08/01/42100% 199,764 (26,258) - 173,506 107.456% 186,443 93,222 (336) (4,644) 88,242 1,601,460 182042 02/01/43100% 204,758 (26,258) - 178,501 107.456% 191,810 95,905 (345) (4,778) 90,782 1,641,579 18.52043 08/01/43100% 204,758 (26,258) - 178,501 107.456% 191,810 95,905 (345) (4,778) 90,782 1,680,887 192043 02/01/44100% 209,877 (26,258) - 183,620 107.456% 197,310 98,655 (355) (4,915) 93,385 1,720,505 19.52044 08/01/44100% 209,877 (26,258) - 183,620 107.456% 197,310 98,655 (355) (4,915) 93,385 1,759,323 202044 02/01/45100% 215,124 (26,258) - 188,866 107.456% 202,948 101,474 (365) (5,055) 96,053 1,798,443 20.52045 08/01/45100% 215,124 (26,258) - 188,866 107.456% 202,948 101,474 (365) (5,055) 96,053 1,836,773 212045 02/01/46 Total3,242,290 (11,672) (161,531) 3,069,087 Present Value From 08/01/2023 Present Value Rate 4.125% 1,940,431 (6,986) (96,672) 1,836,773 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\EDINA\Housing Economic Redevelopment\TIF\TIF Districts\4040 West 70th Street\Cash flows\Cornelia View_101 4d TIF Run 6.21.2021.xls Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 15 Appendix C: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for 4040 West 70th Street Tax Increment Financing District, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that 4040 West 70th Street Tax Increment Financing District is a housing district as defined in M.S., Section 469.174, Subd. 11 and the Special TIF Housing Legislation. 4040 West 70th Street Tax Increment Financing District consists of one (1) parcel within the Southeast Edina Redevelopment Project Area. The development will consist of the redevelopment of the property to construct 118-units of senior affordable housing in the City, all or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 20 percent of the units receiving assistance will have incomes at or below 60 percent of area median income. 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. This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for redevelopment and is intended for occupancy by low and moderate-income persons. Due to the high costs of land acquisition and building costs of new housing in the City, this project is feasible only through assistance, in part, from tax increment financing. The developer has provided the city its estimated project budget and financing projections. At least 85% of the proposed housing units are intended to be both rent and income restricted at levels designated for low and moderate incomes. The affordable rental revenues alone are insufficient to provide a sufficient rate of return, pay operating expenses, and service the debt necessary to make the project economically feasible. City staff and the City’s advisors have reviewed the information and determined the project demonstrates the need for tax increment assistance. The necessity of public assistance is true for most affordable housing developments in Minnesota. The affordable project also requires public assistance beyond tax increment. The developer has applied for an allocation of federal low-income housing tax credits from the Minnesota Housing Finance Agency (MHFA). The City and HRA’s assistance is necessary in order to leverage the potential federal subsidy necessary to finance the redevelopment. 3. Finding that the TIF Plan for 4040 West 70th Street Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 16 The City of Edina Planning Commission reviewed the TIF Plan and approved Resolution 2021-__ on July 28, 2021 to provide written opinion affirming that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for 4040 West 70th Street Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Southeast Edina Redevelopment Project Area by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for residential development, which is desirable and necessary for meeting the housing needs of an increasing population, people with a variety on incomes needing housing alternatives that would otherwise not be available, and an increased need for life-cycle housing within the City. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 17 Appendix D: Project Description The development team called Cornelia View Developers, LLC, a joint entity consisting of Ecumen and Lupe Development Partners, LLC, is proposing to sponsor the development of approximately 118 affordable housing units targeted for a senior population on land recently acquired by the Edina Housing Foundation. The development, intended to be named Cornelia View, will be located at 4040 West 70th Street within the City. Cornelia View Developers, LLC intends to redevelop the existing site which is home to an aged office building and parking lot. The new development will feature senior affordable rental housing complete with an amenity space with community-based programming and public art. The developer will demolish the existing building and clean up the site for redevelopment into a four-story, 145,300 square foot building complete with underground and surface parking to serve the site. The building will also have first floor common areas and space for leasing/management offices, as well as amenities including a lobby, fitness center, and a clubroom with kitchen. The site is also envisioned to feature walking paths through and around the site connecting to adjacent Southdale area. The proposed unit mix includes 97 one-bedroom and 21 two-bedroom units, all which will be restricted to households earning at or below 80% of the Area Median Income (AMI). The developer further intends to restrict occupancy and rents for at least 101 units across the 50% and 60% AMI household income thresholds. The developer will be applying for an allocation of federal low-income housing tax credits from the Minnesota Housing Finance Agency (MHFA) as well as supportive housing subsidies. To supplement the MHFA application, the Edina Housing Foundation and Edina Housing and Redevelopment Authority are proposing to partner in writing down the land acquisition costs and provide tax increment assistance for the affordable housing development. The estimated cost of the development is $32.3 million. Pending award of the tax credits, construction is expected to begin in 2022 or 2023 with planned occupancy in the year after construction. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 18 Appendix E: Special TIF Housing Legislation Minnesota Session Laws – 2019, 1st Special Session Chapter 6 – HF No. 5, Article 7 Sec. 3. Laws 2014, chapter 308, article 6, section 8, subdivision 1, as amended by Laws 2017, First Special Session chapter 1, article 6, section 11, is amended to read: Subdivision 1. Authority to create districts. (a) The governing body of the city of Edina or its development authority may establish one or more tax increment financing housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries exist on March 31, 2014. (b) The authority to request certification of districts under this section expires on December 31, 2019 2021. EFFECTIVE DATE. This section is effective the day after the governing body of the city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Minnesota Session Laws – 2017, 1st Special Session Chapter 1 – HF No. 1, Article 6 Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read: Subdivision 1. Authority to create districts. (a) The governing body of the city of Edina or its development authority may establish one or more tax increment financing housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries exist on March 31, 2014. (b) The authority to request certification of districts under this section expires on June 30, 2017 December 31, 2019. EFFECTIVE DATE. This section is effective the day after the governing body of the city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Sec. 16. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW. Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, the chief clerical officer of the city of Edina may file with the secretary of state certificate of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016, and, if the certificate is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, are otherwise complied with, the special law is deemed approved, and all actions taken by the city before the effective date of this section in reliance on Laws 2014, chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article 6, section 8, and this act. Edina Housing and Redevelopment Authority 4040 West 70th Street Tax Increment Financing District 19 EFFECTIVE DATE. This section is effective the day following final enactment. Minnesota Session Laws - 2014, Regular Session Chapter 308--HF No. 3167, Article 6 Sec. 8. CITY OF EDINA; TAX INCREMENT FINANCING. Subdivision 1. Authority to create districts. (a) The governing body of the city of Edina or its development authority may establish one or more tax increment financing housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries exist on March 31, 2014. (b) The authority to request certification of districts under this section expires on June 30, 2017. Subd. 2. Rules governing districts. (a) Housing districts established under this section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, except as otherwise provided in this subdivision. (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, no increment must be paid to the authority after 20 years after receipt by the authority of the first increment from a district established under this section. (c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, subdivision 3, for a residential rental project, the city may elect to substitute "20 percent" for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code in determining the applicable income limits. (d) The provisions of Minnesota Statutes, section 469.1761, subdivision 3, apply for a 25-year period beginning on the date of certification of the district. Subd. 3. Pooling authority. The city may elect to treat expenditures of increment from the Southdale 2 district for a housing project of a district established under this section as expenditures qualifying under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d): (1) without regard to whether the housing meets the requirement of a qualified building under section 42 of the Internal Revenue Code; and (2) may increase by an additional 25 percentage points the permitted amount of expenditures for activities located outside the geographic area of the district permitted under that section. EFFECTIVE DATE. This section is effective upon compliance by the governing body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3. July 21, 2021 Mayor and City Council Chad A. Millner, P.E., Director of Engineering Andrew Scipioni, Transportation Planner West Promenade / Valley View Road from West 69th Street to West 70th Street Information / Background: On June 15, 2021, the City Council approved a development project at 4040 West 70th Street. As part of the approval, council asked staff to consider potential improvements to Valley View Road between West 69th and 70th Streets. This approximate location has been noted as a possible route for the West Promenade. The West Promenade, as described in the 2019 Greater Southdale District Design Experience Guidelines, is a facility that would create a movement corridor for pedestrians and bicyclists and serve as transition space between residential neighborhoods and the District. In the same document, the proposed West Promenade is shown to parallel France Avenue between West 66th Street and Gallagher Drive, partially along Valley View Road and partially mid-block to divide larger development block (see Figure 1). Figure 1. Proposed West Promenade Alignment STAFF REPORT Page 2 The 2018 Pedestrian and Bicycle Master Plan was built upon the framework of a similar facility. Modeled after the Grand Loop concept from the 2015 Parks Strategic Plan, the Twin Loops is a proposed shared-use pedestrian and bicycle facility that connects all four city quadrants, serving Edina schools, parks and community destinations. Near 4040 West 70th Street, the Inner Loop (which predominately connects to schools) is proposed on Southdale Road and Cornelia Drive within the residential neighborhood. The Outer Loop (which predominately connects to parks) is proposed on France Avenue and West 69th Street (see Figure 2). Figure 2. Twin Loops Alignments Staff has developed a concept that merges these two concepts into one facility along Valley View Road between West 69th and 70th Streets. The concept would build from the developer’s site plan of an 8-foot sidewalk with a 6-foot boulevard along the east side by narrowing vehicle lanes to 12 feet in each direction and creating a 12-foot wide shared-use facility along the west side with a 6-foot buffer to the neighborhood that could be landscaped with trees and shrubs (see Figure 3). STAFF REPORT Page 3 Figure 3. Valley View Road Concept between West 69th and 70th Streets Staff feels this concept creates a more realistic location for the Twin Loops and the West Promenade. It moves the Inner Loop away from residential neighborhood streets with a newer sidewalk. There is opportunity to continue the pedestrian improvements with future projects along Valley View Road from Highway 62 to 69th Street. 70th Street already has pedestrian and bicycle facilities that will connect this facility to the original Promenade on the east side of France Avenue. Funding On June 24, 2021, the HRA approved Resolution No. 2021-05 stating that the HRA will consider providing TIF financing for the development of 4040 W. 70th Street because it is an affordable housing project. The project will continue to advance the City’s goal of creating more affordable housing units. Statutory steps are in process to create the TIF District at his location. The TIF District at his location would be a Housing TIF District. A Housing TIF District can only be used to assist with the creation of housing. The street improvements considered along Valley View Road from 69th Street to 70th Street would not be eligible for these TIF funds. The estimated cost for this project along Valley View Road for street and pedestrian improvements is $600,000. Capital Improvement Project #15-225 HRA – Promenade Phase V is listed for 2024 with a budget of $600,000 from the Centennial Lake TIF District. This project was created as a placeholder for future buildout of the Promenade. The scope and location of that project has not been defined. STAFF REPORT Page 4 The improvements along Valley View Road are eligible for funding from the Centennial Lakes TIF District. Staff is asking for feedback from council on which project is a higher priority for the available funding. STAFF REPORT Page 5 Reference Materials Item # Document Section Comments 1 Greater Southdale Area District Plan Design Experience Guidelines Experience Guidelines Streets and Street Grid Typology B and C – Local Streets 2 Greater Southdale Area District Plan Design Experience Guidelines Transition Zones: Reimaging Walley View Drive “Redefine street as northern- most extent of the West Promenade and create residential transition” 3 Greater Southdale Area District Plan Design Experience Guidelines Street Rooms/Seam East and West Promenades 4 Transportation Chapter of Comprehensive Plan Proposed Pedestrian Facilities Twin Loops Facility Graphic 1. Transition Zone: Reimaging Valley View Road STAFF REPORT Page 6 Graphic 2. Street Typology B: 60-ft Wide Local Street Graphic 3. West Promenade The CITY ofEDINA Cornelia View Apartments Creation of a New Housing TIF District Stephanie Hawkinson Affordable Housing Development Manager July 29, 2021 The CITY ofEDINAToday’s Request: Approve Resolution No. 2021-06 Authorizing the creation of a new Housing TIF District to aid in the development of 118 units of age restricted 100% affordable housing. A Redevelopment Agreement will still need to be approved for TIF to be used. EdinaMN.gov 2 TIF Financial Gap The CITY ofEDINA 3 Background –Community Support 2015 Community Vision: “Residential Development Mix … Continue to explore options for new multi-family housing throughout the city in mixed-use areas and near public spaces… create affordable housing options close to transit, shopping and employment centers ” (page 7) 2040 Comprehensive Plan: “Affordable housing is a necessary component of the housing mix. This is especially true given the demographic future of Greater Southdale. The expected growth in the senior population and the desire to attract young workers and families both point to the need to have more affordable housing, including options for those that might choose to move here from other parts of the community. (pg 85) Housing Strategy Task Force: •Housing Choice: Support the development of a wide range of housing options to meet the diverse needs and preferences for the existing and future Edina community. •Affordability: Encourage the development and maintenance of diverse housing options affordable to residents at a range of incomes and life stages. 2021 Quality of Life Survey: 14% of Resident who wrote in a response said there was a need for more affordable housing. The CITY ofEDINAWhat is TIF? 4 •Boundaries •Maximum Budget •Term •Qualifications •But-for 1) Create “District” •Private developments •Public improvements 2) Consider Funding for Specific Projects •4-year knock down •5-year construction •Annual reporting •De-certification 3) Monitoring & Compliance Steps to Establish, Fund and Monitor TIF (defined in Minnesota TIF Statutes) Action considered at Public Hearing The CITY ofEDINATax Increment Financing As a “Pay-Go Note” helps to leverage additional debt financing EdinaMN.gov 5 The CITY ofEDINA 6 Edina has 8 active TIF Districts: •Southdale 2 •Pentagon Park •Grandview 2 •66 West •50th & France 2 •44th & France 2 •West 76th Street •Amundson Flats 44th & France 2 Proposed 4040 W. 70th St. TIF District TIF in Edina The CITY ofEDINA 7 TIF in Edina: 2021 TIF in Edina is used on a limited Basis and to a lesser extent than Neighboring Cities The CITY ofEDINA When 4040 W. 70th St. TIF District comes on-line, the Southdale 2 District will have expired. Removing Southdale 2, the City’s capture rate reduces to 1% TIF Breakdown www.EdinaMN.gov 8 The CITY ofEDINA •1 parcel •118 Units of Affordable Housing •“Affordable” Housing District •-Using Special Legislation approved in 2014 •21-year term (max.) •Allow pooling from Southdale 2 District •Estimated Annual Tax Increment = $202,948 •Creates approximately $3.2M in increment over 21-years •Estimated Increment for Housing = $1.8M in upfront construction proceeds 9 Proposed TIF District & TIF Plan The CITY ofEDINAUse of TIF Funds Total Development Budget: $32,373,900 Sources: •First Mortgage $12,858,354 40% •TIF Leverage Mortgage $1,808,000 6% •4% Tax Credit Equity $10,164,422 31% •MHFA Deferred $4,894,098 15% •Met Council $1,000,000 3% •Hennepin County $740,000 3% •Energy/Sales Tax Rebates $486,380 1% •Remaining Gap $433,000 1% www.EdinaMN.gov 10 The CITY ofEDINANext Steps Once all other source of financing are secured, a Redevelopment Agreement, including a TIF Pay-go Note, will be reviewed for approval. www.EdinaMN.gov 11 Date: July 29, 2021 Agenda Item #: VI I.B. To:C hair & C ommissioners of the Ed ina HR A Item Type: R ep o rt / R ecommend atio n F rom:Bill Neuendorf, Ec o nomic Development Manager Item Activity: Subject:R es olution No. 2021-07: C all for a p ublic hearing on the p ro p o s ed mortificatio ns to the red evelopment p lan for the S outheas t Ed ina R ed evelo p ment P rojec t area and and S outhd ale 2 Tax Increment F inanc ing P lan. Ac tio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : Approve R esolution N o. 2021-07. I N TR O D U C TI O N : T his is to call for a public hearing on the proposed mortifications to the redevelopment plan for the S outheast E dina Redevelopment P roject area and and S outhdale 2 Tax I ncrement F inancing P lan. AT TAC HME N T S : Description Res olution 2021-07 Edina Housing and Redevelopment Authority RESOLUTION NO. 2021-07 REQUESTING THE CITY COUNCIL OF THE CITY OF EDINA CALL FOR A PUBLIC HEARING ON THE PROPOSED MODIFICATIONS TO THE REDEVELOPMENT PLAN FOR THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA AND SOUTHDALE 2 TAX INCREMENT FINANCING PLAN WHEREAS, the Board of Commissioners (the "Board") of the Edina Housing and Redevelopment Authority (the "HRA") and City Council ("Council") of the City of Edina, Minnesota ("City") previously established the Southeast Edina Redevelopment Project Area pursuant to Minnesota Statutes, Sections 469.001 through 469.047, inclusive, as amended (the "HRA Act"), in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the HRA previously established the Southdale 2 Tax Increment Financing District (the "District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, inclusive, as amended (the "TIF Act") and Minnesota Session Laws 2014, Chapter 308, Article 6, Section 8, as amended by Minnesota Session Laws 2017, First Special Session Chapter 1, Article 6, Sections 11 and 16, and Minnesota Session Laws 2019, First Special Session Chapter 6, Article 7, Section 3 (the "Special TIF Housing Legislation") and adopted a Tax Increment Financing Plan (the "TIF Plan") therefore. WHEREAS, the HRA is proposing modifications to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area ("Redevelopment Plan Modification") and TIF Plan (the "TIF Plan Modification") to increase the amount of estimated tax increment expenditures of the District (the Redevelopment Plan Modification and TIF Plan Modification are referred to collectively herein as the "Plans"), all pursuant to and in accordance with the HRA Act, TIF Act, and Special TIF Housing Legislation; and NOW, THEREFORE BE IT RESOLVED by the Board as follows: I . The HRA hereby requests that the City Council call for a public hearing on September 9, 2021, to consider the proposed Plans and cause notice of said public hearing to be given as required by law. 2. The HRA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. CITY OF EDINA 4801 West 50th Street • Edina, Minnesota 55424 HRA Resolution 2021-07 Page 2 3. The Executive Director of the HRA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The HRA affirms the transmission of the Plans to Hennepin County and Independent School Districts No. 273 and No. 280 in which the Southeast Edina Redevelopment Project Area is located no later than August 9, 2021. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on July 29, 2021. ATTEST: James B. Hovland, Chair James Pierce, Secretary STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA CERTIFICATE OF EXECUTIVE DIRECTOR 1, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of July 29, 2021, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of , 2021. Executive Director Date: July 29, 2021 Agenda Item #: VI I.C . To:C hair & C ommissioners of the Ed ina HR A Item Type: R ep o rt / R ecommend atio n F rom:Bill Neuendorf, Ec o nomic Development Manager Item Activity: Subject:5146 Ed en Avenue - R ed evelopment P lanning Ac tio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : C ontinue the redevelopment planning process and approve the engagement letter with F rauenshuh and U nited P roperties. I N TR O D U C TI O N : T his item pertains to the redevelopment of the H R A's vacant property located at 5146 E den Avenue. Based on the needs of the site and direction provided at the J une 10th meeting of the H R A B oard, staff has worked with representatives from F rauenshuh and United P roperties to prepare a scope of work. T his additional work is intended to support the decision making process regarding the type of hospitality user to seek out for the northern portion of the site. S taff recommends approval of the engagement letter. AT TAC HME N T S : Description Staff Report Engagement Letter July 29, 2021 Chair and Commissioners of Edina Housing & Redevelopment Authority Bill Neuendorf, Economic Development Manager 5146 Eden Avenue – Redevelopment Planning Information / Background: Staff has worked with Frauenshuh and United Properties to clarify the next steps in the redevelopment planning for the vacant site located at 5146 Eden Avenue. These steps are based on the June 10, 2021 discussion about the site. Frauenshuh and United Properties have submitted an engagement letter to clarify roles and responsibilities for activities to be conducted between August and October 2021. The outcome of these activities include: 1) Identify operators with sincere interest and capacity to open a new business on the site that includes indoor and outdoor dining areas as well as indoor and outdoor activities 2) Clarify the type of real estate transaction preferred by the HRA for the future dining operator 3) Clarify the parking availability within the existing parking structure 4) Clarify the parking and operational needs of a future dining operator 5) Define the general business terms for the future senior co-operative housing 6) Clarify the preferred use and potential programming for the future public green space 7) Clarify how the green space connects to future pedestrian bridge and future sidewalk In order to achieve these outcomes, the HRA will need to take decisive action based on the information to be collected. The work completed in this phase is intended to lead to binding Redevelopment Agreements to construct two new market driven projects on the site that are complimented by a new public green space. Recommended Action: Staff is prepared to implement the activities identified in the engagement letter. Staff recommends that the HRA Board approve the engagement letter with Frauenshuh and United Properties. Housing and Redevelopment Authority Established 1974 1 July 26, 2021 Via email delivery Bill Neuendorf Economic Development Manager Edina Housing and Redevelopment Authority 4801 W 50th St. Edina, MN 55424 RE: 5146 Eden Avenue Redevelopment; Restaurant/Hospitality Use Engagement Letter Dear Bill, In connection with the continuation of redevelopment activities associated with the above referenced site, this letter sets forth the steps to develop the site concept, working in conjunction with the HRA on the following concept direction as depicted in Exhibit A: South Portion of the Site The south portion of the site would continue to be planned for Senior Cooperative housing with at least 10% of the units affordably priced (“Senior Cooperative Project”). Frauenshuh/United Properties will continue to work with the HRA on the land price, project economics and conditions of the purchase of the site for the Senior Cooperative Project. North Portion of the Site HRA to develop its vision for the north portion of the site to include an indoor/outdoor dining facility that includes indoor/outdoor activities along with an outdoor green space connecting with the future pedestrian bridge as depicted in Exhibit B attached hereto. To define and clarify the HRA’s objectives for this use: • Step 1: HRA, at its cost, will directly engage design, operational and third-party market consultants to refine the plan and vision. Frauenshuh/United Properties will continue to work with the HRA and its consultants to refine the concept vision to achieve the HRA’s desired use outcome in compatibility with the Senior Cooperative. The refined concept vision will be presented to the HRA for approval. This step will be completed in approximately 30 days from execution of this engagement letter. • Step 2: Once approved by the HRA, the concept vision will be presented to the market and prospective users/operators will be approached to solicit specific proposals for their intended use concept. Frauenshuh/United Properties will assist the HRA in the process of procuring interested operator/use partner. This step will be completed in approximately 60 days from initiation. As the HRA’s exclusive agent, Frauenshuh/United Properties will be compensated a market rate brokerage fee for the procurement of the operator/use partner for the North Portion of the Site should the HRA execute an agreement with such operator/use partner for a land lease, building lease or land sale for the selected use. 2 The parties desire to execute this engagement and work exclusively together and in good faith on the Senior Housing Cooperative Project and to develop the HRA’s use outcome, and procure an operator/use partner, for the North Portion of the Site. Should this engagement lead to the identification of an acceptable use concept and an operator/user for the North Portion of the Site, and an acceptable land price and project economics and conditions for the purchase of the site for the Senior Cooperative Project, the parties will proceed to enter binding Redevelopment Agreements in accordance with the Preliminary Schedule per Exhibit C for each of the South Portion and North Portion of the site, respectively. We look forward to building momentum around the use components identified herein and continuing this collaborative redevelopment effort with the City of Edina HRA. Sincerely, _________________________________________ _________________________________________ Frauenshuh, Inc. United Properties AGREED AND ACCEPTED Edina HRA By: _________________________________________ Scott Neal, Executive Director Date: _________________________________________ Exhibit A 3 OVERALL SITE PLAN CONCEPT Exhibit B NORTH PORTION OF THE SITE NORTH PORTION OF THE SITE (HRA Owned - to be land leased, BTS lease or separate land sale, TBD) SOUTH PORTION OF THE SITE (Land sale for approximately 90 senior cooperative units, with 10% affordably priced) 4 5 Exhibit C PRELIMINARY SCHEDULE 6 July 29th, 2021 HRA Authorization of restaurant/hospitality use engagement August 10th, 2021 Park & Recreation Commission presentation for input and discussion on future green space. August 26th, 2021 HRA to confirm North Portion of the Site use concept to present to market/prospective restaurant operators, including parking availability in adjacent parking structure HRA to approve preliminary business terms for South Portion of the Site senior cooperative land price and terms for 10% affordably priced units. October 28th, 2021 Presentation of restaurant/hospitality operators and business proposals and HRA to select group with which to negotiate (closed session). November 2021 Sketch Plan (North and South portions together) with Planning Commission and City Council December 2021 Redevelopment Agreements (North and South Portions), including brokerage fee agreement January – March 2022 Land Use/PUD Entitlements for Rezoning April – June 2022 Final Design/Site Plan Approvals and Sr. Coop Project Financing (HUD) June – November 2022 Senior Cooperative Marketing/Pre-sales Spring 2023 Construction Start Late Summer/Fall 2024 Completion and Occupancy Date: July 29, 2021 Agenda Item #: VI I.D. To:C hair & C ommissioners of the Ed ina HR A Item Type: R ep o rt / R ecommend atio n F rom:Bill Neuendorf, Ec o nomic Development Manager Item Activity: Subject:4917 Ed en Ave - P ro ject Update Disc ussio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : N o action required; for discussion only. I N TR O D U C TI O N : S taff has completed the preliminary analysis of the developer's request to use Tax I ncrement F inancing for this site. I n this case, T I F could be used to resolve the financing gap in the developers financial pro forma and could also be used to fund some of the desired roadway improvements in and around the site. S taff will present an update for discussion. AT TAC HME N T S : Description Staff Report Memo from Ehlers July 29, 2021 Chair and Commissioners of Edina Housing & Redevelopment Authority Bill Neuendorf, Economic Development Manager 4917 Eden Avenue – Project Update Information / Background: Reuter Walton Development has requested that Tax Increment Financing be provided for the proposed redevelopment of commercial property at 4917 Eden Avenue. Staff has met with the developer to understand the financial conditions that require public financing. Staff has also engaged legal and financial advisors at Ehlers Associates and Dorsey & Whitney to scrutinize the financial pro forma and provide input on the potential use of TIF for this project. In brief, the project consists of approximately 196 new rental housing units along with approximately 3,000 square feet of ground level commercial space. Most of the new apartments are market-rate, except for 20- units that are affordably priced to meet the City’s affordable housing policy. The new project would replace an existing 2- level restaurant and office building that exists on the 2.08 acre site. Summary The total development cost is $83.7 million. This high project is cost due primarily to three factors: escalating construction costs (materials and labor), high land costs and site redevelopment costs (demolition, utilities, etc). The gap to achieve private financing and acceptable return on cost is approximately $5.1 million. There are many public benefits to be derived from this project that substantiate this gap. Along with staff, Ehlers has scrutinized the financial pro forma and confirmed that “but for” the use of TIF, this project will be unable to secure private financing. Ehlers has confirmed that adequate incremental taxes will be generated from the completed project to fund an interest-bearing $5.1 million TIF Note. An additional $6.8 million in incremental taxes is anticipated to be generated to fund public infrastructure improvements in the vicinity of the project. Housing and Redevelopment Authority Established 1974 STAFF REPORT Page 2 The City’s engineering department has identified several public transportation improvements that could improve traffic safety, pedestrian and bicyclist access and overall traffic flow in the area. Many of these improvements could be funding using the increment taxes generated from this project. Additionally, TIF could be used to relocate the historic buildings in Tupa Park to a more appropriate location, if that site were used for private redevelopment in the future. If the potential package of public transportation improvements is of interest to the HRA, staff will prepare a Term Sheet that identifies the terms and conditions by which TIF could be used. Recommended Action: Direction is requested from the HRA Board regarding the general interest in using tax increment financing to make this private development project and public transportation improvements financially feasible. No formal action is required at this time. SOURCES Amount Pct. Per Unit First Mortgage 58,634,321 70%299,155 Equity 20,028,995 24%102,189 TIF Supported Developer Equity 5,100,000 6%26,020 Other Public Sources 0 0%- TOTAL SOURCES 83,763,316 100%427,364 USES Amount Pct. Per Unit Acquisition Costs 12,000,000 14%61,224 Construction Costs 60,290,093 72%307,603 Soil Remediation / Correction 750,000 1%3,827 Professional Services 3,864,884 5%19,719 Financing Costs 4,040,980 5%20,617 Developer Fee 2,817,359 3%14,374 TOTAL USES 83,763,316 100%427,364 • • • • • • • • Type # of Units Rent Type Rent Difference Monthly Income Difference 22 Market $1,650 4 Affordable $696 52 Market $2,150 10 Affordable $754 63 Market $3,150 6 Affordable $936 Monthly Income Difference ($31,060) Annual Income Difference ($372,720) 2BR ($2,214)($13,284) Studio ($954)($3,816) 1BR ($1,396)($13,960) Date: July 29, 2021 Agenda Item #: VI I.E. To:C hair & C ommissioners of the Ed ina HR A Item Type: R ep o rt / R ecommend atio n F rom:C had Millner, C ity Engineer & Bill Neuend o rf, Ec o nomic Develo p ment Manager Item Activity: Subject:G randview Eas t - P otential Trans portation Imp ro vements Disc ussio n Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P ME NT AUT H O R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : F or discussion only; no action required at this time. I N TR O D U C TI O N : S taff has engaged S hort E lliot H endrickson (S E H ) to prepare conceptual studies for potential transportation improvements that may address some of the traffic and safety concerns raised in relation to the redevelopment of 4917 E den Avenue. S taff will present a summary of these concepts along with estimated costs. Some of these improvements could be funded by the H R A using tax increment financing. B efore these concepts are refined and presented to the C ity C ouncil for formal consideration, input is requested regarding the potential use of H R A funding sources to construct these improvements. AT TAC HME N T S : Description Trans portation Concepts Cos t Es timates © 2021 Microsoft Corporation © 2021 Maxar ©CNES (2021) Distribution Airbus DS Eden Ave & Willson IntersectionDRAFT FOR DISCUSSION Grange Road Pedestrian Route and Future Pedestrian Bridge ConceptDRAFT FOR DISCUSSION W. 50th Street Pedestrian andTurning ImprovementsDRAFT FOR DISCUSSION Highway 100 Future Northbound AccessDRAFT FOR DISCUSSION Grandview East – Potential Transportation Improvements Description of Improvement Agency Jurisdiction Public Benefit Prelim Cost Estimate* Funding Sources 1 Willson/ Eden/ Grange Intersection Reconstruct intersection to improve multi-modal traffic operations with roundabouts; City Vehicle flow & safety, improved bike & ped routes – better use of green space $1.1M - $1.6M 4917 TIF 2 Grange Rd Build new pedestrian and bicycle facility with a shared use path City MnDOT Improved bike & ped routes – more space and safer, transit access $245k - $370k 4917 TIF 3 Ped Bridge over TH100 Pedestrian Bridge over Highway 100 City MnDOT Improved (safer) bike & ped routes – $3.0M - $4.3M TBD 4 50th Street – (Grange to Dale) Widen and reconfigure 50th St to improve safety City Vehicle flow & safety, improved bike & ped routes – more space and safer $1.5M - $2.2M 4917 TIF 5 50th Street – (Dale to Eden) Widen and reconfigure 50th St to improve safety City Vehicle flow & safety, Improved bike & ped routes – more space and safer $1.1M - $1.6M TBD 6 Northbound TH100 Ramp & Bridge Reconfiguration Reconfigure bridge with diverging diamond interchange to create new entrance and exit ramps serving freeway traffic City County MnDOT Vehicle flow & safety, Improved bike & ped routes – more space and safer $5.0M - $7.3M TBD Total = $ $6.9 to $10.1 M * Estimates include construction, design and management costs. Cost of TIF-Funded Projects = $2.8 to $4.2 M Cost of Un-Funded Future Projects = $4.1 to $5.9 M Prepared July 26, 2021