The URL can be used to link to this page

Home My WebLink About2021-08-26 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota City Hall, Council Cham be rs Thursday, August 26, 2021 7:30 AM Watch the meeting on cable TV or at EdinaMN.gov/LiveMeetings or Facebook.com/EdinaMN. To participate in Community Comment: Call 800-374-0221. Enter Conference ID 8038358. 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 sta8 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.Approval of Meeting Agenda V.Community Comment During "Community Comment," the Edina Housing and Redevelopment Authority (HRA) will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the HRA or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on today's agenda may not be addressed during Community Comment. Individuals should not expect the Chair or Commissioners to respond to their comments today. Instead the Commissioners might refer the matter to sta. for consideration at a future meeting. VI.Adoption of Consent Agenda All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of Commissioners present to approve.) A.Minutes - August 12, 2021 B.Approve an Additional $750,000 for the Housing Rehabilitation Program C.Approve Payment of Claims VII.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.4917 Eden Avenue - Terms of Tax Increment Financing B.Resolution No. 2021-08: Call for a Public Hearing on the Proposed Modi?cations to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area and Eden/Willson Tax Increment Financing Plan C.Resolution 2021-09: Adopting Modi?cations of the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District D.5146 Eden Avenue - Redevelopment Planning E.Real Estate Services Agreement for 5146 Eden Avenue F.Edina Theater - Request for Financial Assistance VIII.HRA Commissioners' Comments IX.Executive Director's Comments A.5146 Eden Avenue - Potential Sale X.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need a ssista nce in the way of hearing ampli?cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: August 26, 2021 Agenda Item #: VI.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Minutes - Augus t 12, 2021 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the minutes from the August 12, 2021 meeting. I N TR O D U C TI O N: AT TAC HME N T S: Description Draft Minutes Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY AUGUST 12, 2021 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. 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 Jackson, seconded by Commissioner Pierce, 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 PRESENTED Member Jackson made a motion, seconded by Member Anderson, approving the consent agenda as presented: VI.A. Approve minutes of the Regular Meeting July 29, 2021 VI.B. Single Family Ownership Preservation Program Rollcall: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. GRANDVIEW PEDESTRIAN BRIDGE – PROJECT UPDATE – RECEIVED Economic Development Manager Neuendorf shared the item pertained to the design of the pedestrian bridge and sidewalk to be constructed in the Grandview District. Staff provided additional information in response to concerns regarding the aesthetic and functional aspects of the bridge and said they were seeking direction and guidance regarding the preferred design elements to provide to the contractor. In June 2021, the HRA awarded a construction contract to Pember Companies to build the new pedestrian bridge and related sidewalk at 5146 Eden Avenue. At that time, the members of the HRA expressed the desire to redesign specific portions of the project. The designers at Kimley Horn Associates prepared additional graphic renderings to better illustrate the preliminary design of the bridge in relation to the surrounding context. Staff explored other examples to illustrate the types of changes that could be reasonably accommodated. The updated renderings and examples were shared for review and discussion. Staff also has suggested functional and aesthetic criteria to consider and shared recommendations regarding several elements and asked the HRA for direction on others that included if the bridge should be “open air” or redesigned to include a roof, support for the recommended aesthetic changes and select the aesthetic theme. Minutes/HRA/August 12, 2021 Page 2 The Commission asked questions regarding whether the design should contain a cover to the bridge and the goal to have people park at the ramp and come across to utilize the site even during adverse weather and ice conditions. They spoke about not knowing about parking and the need to not have parking occur on Arcadia then spoke about personal safety, welcome signage, and adequate lighting. The Commission spoke about alternative ways to make the bridge deck safe as well as the stairs then stressed the need for aesthetics, ease of maintenance, and how to engage the community in the decision making and the desire for the area to be a marquee. Consensus was to engage the neighborhood for recommendations with the goal to tie from the bridge end to Arcadia. VII.B. 7001 FRANCE AVENUE – PROJECT UPDATE – RECEIVED Mr. Neuendorf shared this item pertained to the potential use of tax increment financing (TIF) to promote redevelopment of the underutilized site at 7001 France Avenue. The developer had alerted staff that the rapid escalation in construction material prices had a severe impact on the financial viability of the redevelopment plans and intended to pursue changes in the site plan to scale back some elements of the proposed project. The 6-acre site would still be split into four separate parcels with four separate buildings and the Southdale Design Guidelines would still be applied. He said based on redevelopment costs and the high level of design requirements, staff still anticipated a financial gap that would need to be resolved with public financing and was seeking input regarding the potential use of public financing on this project. Mr. Neuendorf said the developer was preparing updated site plans for reconsideration by the Planning Commission and City Council but in order to achieve a bold redevelopment strategy capable of securing adequate debt and equity investors, the developer would need to secure obtain new zoning entitlements for the site as well as a commitment to provide public financing to address the anticipated gap in the pro forma. Rezoning without TIF was not anticipated to result in a buildable site plan. He said the site would continue to be subdivided into four separate parcels with four separate buildings with the mixed-income (affordable) apartments on Site C replaced with a 6-7 level pre-cast concrete (sloped floor) open parking structure with high level of exterior design, majority of which would be available for public parking. The five levels of parking in the podium of the office building would be reduced or eliminated to reduce the height and cost of the Site B office. The developer would comply with the City’s affordable housing policy by preserving NOAH housing off-site or by making a financial contribution to ‘buy in’ to the affordable housing pool instead of constructing affordable units on site and no changes would occur to the branch bank on Site D. Nate Podratz, Mortenson, shared comments regarding the project and how they attempted to adapt to the changing market as best as possible and create a budget that allowed them to continue. Brent Webb, Mortenson, said they had a strong partnership with the building team and spoke with many others on how to make the project work. He said they still planned to do buy-in with the hopes to do another affordable housing project in the future. The Commission asked how much this was a timing issue with the current market and if they believed the original design could work today as opposed to not moving forward or find additional funding through TIF. Mr. Neuendorf noted the timeframe was only 15 years and if the full amount was pledged it would result in no more available TIF funding. He said they could pursue grants for $1-2 million but the gap was too high. The Commission asked about the parking garage height of 6-7 stories, 500 stalls and proposed district parking and said they struggled with the loss of workforce housing and referred to public transportation options in the site and asked about the projection of district parking and how this could be an anchor and need for another public benefit element as they did not want to use public funds to create parking and increase carbon footprints. Mr. Webb said the focus was on office to Minutes/HRA/August 12, 2021 Page 3 suburbs and walkability could play in this project. Mr. Neuendorf said there was no comprehensive count yet on parking but they wanted to move away from individual private parking and create shared, walkability options to reduce the overall parking need. The Commission asked about a policy of participation and the need to be clear with the development community regarding structured parking and create parking similar to Twin Cities Orthopedics that looked more like public art. VII.C. HOUSING STRATEGY TASK FORCE IMPLEMENTATION PLAN – APPROVED Affordable Housing Development Manager Hawkinson stated this item pertained to the December 10, 2020, Housing Strategy Task Force report on Housing Goals and Strategies adopted by the Commission with the direction for staff to return with an implementation plan. She outlined the proposed implementation plan in detail that included goals and strategies in four categories: strategy items in process; strategies recommended to include in 2022 Work Plans; strategies recommended to include in 2023 Work Plans; and strategies where the City had limited authority to implement. Executive Director Neal noted the process was similar to the Race and Equity Task Force that approved the inclusion of intentions into the work plan. The Commission asked if there were missing items from the plan and life cycle housing strategy as there did not appear to include changes to create opportunities for more housing stock for the “missing middle”. Ms. Hawkinson said items from the implementation plan were already in the Task Force’s report and the timeline to explore more was to add to the next year’s work plan for accessory dwelling units and upzoning along traditional areas. Mr. Neal said staff proposed to add those topics to the Planning Commission’s priorities. The Commission spoke about the importance of arcing towards the next Comprehensive Plan and in all aspects realign the City’s vision to accomplish the goal or not. They spoke about the need to address the missing middle and other housing needs and confirmed sidewalks would be concrete and stamped where possible. Motion by Commissioner Pierce, seconded by Commissioner Jackson, to approve the Housing Strategy Task Force Implementation Plan as proposed and direct staff to incorporate into future work plans as recommended. Rollcall: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VIII. HRA COMMISSIONERS’ COMMENTS – Received IX. EXECUTIVE DIRECTOR’S COMMENTS – Received IX.A. PENTAGON VILLAGE – PROJECT UPDATE REGARDING LOT 3 X. ADJOURNMENT Motion made by Commissioner Anderson, seconded by Commissioner Jackson, to adjourn the meeting at 9:08 a.m. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: August 26, 2021 Agenda Item #: VI.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Approve an Additional $750,000 for the Hous ing R ehabilitation P rogram Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve an additional $750,000 out of the Affordable Housing T rust Fund to support the H ousing R ehabilitation P rogram and approve the amended loan documents and service agreement with C enter for Energy and the Environment. I N TR O D U C TI O N: On April 8, 2021 the H ousing and Redevelopment Authority authorized the execution of loan documents and service Agreement with C enter for Energy and the E nvironment to administer the H ome Rehabilitation P ilot program. Due to the success of that program, staff is seeking an additional $750,000. T he H ome Rehabilitation program serves three purposes: 1. Allows higher income borrowers with higher valued homes than the County sponsored C D B G program to borrow funds to rehabilitate their homes. 2. Allows borrowers to rehabilitate their homes with no adverse effect on their monthly cash flow. 3. P rovides a loan forgiveness provision if the house is sold to the H R A or an approved partner. AT TAC HME N T S: Description Staff Report August 26, 2021 Chair and Commissioners of the HRA Stephanie Hawkinson, Affordable Housing Development Manager Home Rehabilitation Program Information / Background: On April 8, 2021 the Housing and Redevelopment Authority approved the execution of loan documents and service agreements with Center for Energy and Environment (CEE) for the Home Rehabilitation pilot program. The initial budget was for $250,000 which was estimated to fund eight loans. The housing rehabilitation pilot program augments the program offered by Hennepin County. The latter is supported through a portion of the City’s allocation of Community Development Block Grant Funds (CDBG). The City based program in partnership with the CEE has broader goals: 1) Preserve modest homes, 2) promote sustainability, 3) provide a financing option that is fully deferred to save on monthly cash flow. The approved program is available to households with incomes up to 125% of the Area Median Income; is deferred with a 2% simple interest and includes an option for principal and interest forgiveness. This option is available if the house is sold to the HRA and either placed into a Land Trust through West Hennepin Affordable Housing Land Trust, added to the Metro HRA affordable housing program, or preserved for long term affordability through another future mechanism. Request Staff recommends providing an additional $750,000 to support 24 more home improvement loans and amending the loan documents and service agreement to reflect this change. On July 28 CEE reported that two applications were received for this program. By August 13h, that number increased to 18. Program Guidelines Summary • Loan Amount: $2,000-$30,000 • Loan Terms: 2% simple, non-compounding interest, deferred for 30-years • Income limit: 125% of AMI STAFF REPORT Page 2 • House value limit: $450,000 • Loan to Value Ratio: 110% • Loan Administrator: Center for Energy and the Environment • Loan Servicer Center for Energy and the Environment Program Expenses Sources Uses* AHTF $ 750,000 Loan $ 706,000 CEE Administration $ 32,000 CEE Servicing $ 12,000 $ 750,000 $ 750,000 *Assumes 16 loans for 30-years at an average of $29,417 each Budget Implications Affordable Housing Trust Fund Estimated Balance Requests Beginning Balance* $ 4,360,000 Market Street ($750,000) 4d Pilot Program - NO TAKERS ($160,000) 4d Pilot Program -2019 ($50,000) VEAP Emergency Assistance* $0 Single Family Ownership Programs (2020) ($840,000) Home Rehabilitation Program (Pilot) ($250,000) 425 Jefferson ($150,000) Single Family Ownership Program (2021) ($1,500,000) Home Rehabilitation Program (Sept. 2021) ($750,000) Ending Balance $ 210,000 *$4.1M in additional funds expected Q3 2021 Alignment with Comprehensive Plan The Home Rehabilitation Program is a tactic to help fulfill Goals and Strategies approved on the 2040 Comprehensive plan and in the Housing Strategy Task Force report: Comprehensive Plan • Encourage the preservation, maintenance, and rehabilitation of existing subsidized and naturally occurring affordable rental and ownership housing. • Increase housing stability and security of residents living in affordable housing. STAFF REPORT Page 3 • Maintain some of Edina’s lower square footage housing stock in order to attract new residents and retain existing residents, including providing affordable options. • Protect and maintain lifecycle housing that is important for attracting young families. Housing Strategy Task Force Report • Develop program to incentivize property owners to keep their properties affordable. • Offer resources to support senior residents seeking to age-in-place. • Consider program of assisting income eligible property owners with rehabilitating their homes to extend their useful life in a manner that also complements the dwelling’s character and is compatible with the character of the surrounding neighborhood. Alignment with City Pillars 1. Sustainability The Home Rehabilitation Program has been designed in partnership with the Sustainability Coordinator to help improve the energy efficiency and sustainability of Edina’s older housing stock. To that end, in addition to a home advisor meeting with the borrowers to discuss health, safety and code issues, the borrowers will also meet with the Home Energy Squad to identify mechanisms to increase energy efficiency. The Home Energy Squad program is already offered to Edina Homeowners, so this pairing of the two program brings rehabilitation dollars to help address identified issues. 2. Equity and Inclusion The primary purpose of this proposed program to is assist low- and moderate-income homeowners with their rehabilitation needs, including addressing accessibility issues. A secondary goal is to potentially secure moderate homes for future affordability. The loan with be secured by a mortgage with a term of 30-years. If a borrower sells their home within the 30-years they can either sell on the open market and repay the HRA the principal plus interest, or if they sell to the HRA for the appraised value, the loan will be forgiven. This is a mechanism to help preserve homes for future affordability. There is no guarantee that any home with be preserved, but it brings this option directly to the borrower. 3. Engagement This type of program was recommended by the Housing Strategy Task Force and reviewed and supported by the Edina Housing Foundation. Date: August 26, 2021 Agenda Item #: VI.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: C laims F rom:Alis ha Mc Andrews , F inance Director Item Activity: Subject:Approve P ayment of C laims Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: M otion to approve payment of claims for H R A Check Register 07.2021 T O TAL $121,027.76 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 Register 07.2021 TOTAL $121,027.76 Date: August 26, 2021 Agenda Item #: VI I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:4917 Eden Avenue - Terms of Tax Inc rement F inancing Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the Term Sheet and authorize the preparation of a complete T I F Redevelopment Agreement based on the terms. I N TR O D U C TI O N: T his item pertains to the redevelopment of commercial property located at 4917 E den Avenue. T he site plan has secured preliminary zoning approvals and the developer has requested that the City and H R A participate in the financing of the redevelopment project. S taff has engaged legal and financial experts to review the developers request. A Term Sheet has been prepared to identify the key terms and conditions by which Tax I ncrement Financing could be used to make this project feasible. S taff recommends that the Term Sheet be approved. AT TAC HME N T S: Description Staff Report 4917 Eden Avenue TIF Term Sheet 8-26-21 TIF Term Sheet 4917 Eden Avenue TIF Term Sheet Presentation 8-26-21 August 29, 2021 Chair and Commissioners of Edina Housing & Redevelopment Authority Bill Neuendorf, Economic Development Manager 4917 Eden Avenue – Terms of Tax Increment Financing Information / Background: Reuter Walton Development has requested that Tax Increment Financing be provided for the proposed redevelopment of commercial property at 4917 Eden Avenue. The redevelopment proposal would transform the aging commercial site into a modern mixed use site that includes both market-rate and affordable apartments as well as new commercial space. 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. The total development cost for the 2.08 acre site is $83.7 million. Ehlers has scrutinized the financial pro forma and determined that the financial gap is approximately $5.1 million. Ehlers also confirmed that “but for” the use of TIF, this project will be unable to secure private financing. To improve the overall accessibility and connectedness of the site, staff has also prepared a package of proposed transportation improvements for consideration. Many (but not all) of the potential improvements could be funded with incremental taxes generated by the completed project. Summary A Term Sheet has been prepared to articulate the fundamental structure of public financing for this overall redevelopment effort. The Term Sheet follows the general format and strategic approach typically used by Edina for redevelopment projects that include a mixture of uses and a wide variety of public benefits. Recommended Action: Staff recommends that the Term Sheet be approved. # # # Housing and Redevelopment Authority Established 1974 4836-8055-7046\1 4917 Eden Avenue Redevelopment Proposed Term Sheet – Tax Increment Financing CITY/HRA DRAFT 8.26.21 1) Purpose and Scope a. This Term Sheet identifies basic business points that establish the framework of the potential use of tax increment financing (“TIF”) to support the private redevelopment of underutilized property (the “Project”) within the City of Edina (the “City”) and to provide certain public benefits. This document is intended to serve as the general framework for a definitive redevelopment agreement (“Redevelopment Agreement”) to be executed by Developer (or Developer’s approved assignees), the City and the Edina Housing and Redevelopment Authority (the “HRA”). b. This document is intended for discussion purposes with the Board of the HRA. Based on the response and direction provided by the HRA Board, the City staff is prepared to engage third-party legal and finance professionals to assist with preparation and creation of the TIF district, the drafting and negotiation of the Redevelopment Agreement, related documents, and related assistance for the Project. c. City and HRA Out of Pocket Costs – Developer has completed the City’s TIF Policy Form and agreed to pay for the City’s staff and out-of-pocket costs in evaluating this request for Tax Increment Financing. The City has engaged Dorsey & Whitney, Ehlers Associates, and Stantec (collectively, “Third Party Consultants”) to provide assistance in preparing the necessary studies and evaluations. Developer has submitted $30,000 in advance to be held in escrow by the City. These funds will be used to pay the Third Party Consultants. Any excess / un-used funds will be returned to Developer. City agrees to provide copies of expenses paid from the escrowed funds upon request by Developer. 2) Developer; Project Ownership a. The Developer for the Project is Reuter Walton (“RW” or “Developer”). Developer has entered into a purchase agreement for the Project site. The Redevelopment Agreement will be entered into by RW or an affiliate approved by the HRA. RW will provide reasonable information to the HRA regarding the organizational and ownership of any such affiliate. 3) Project Description a. Location – The Project site located at 4917 Eden Avenue and is comprised of a single parcel of land to be legally described in the Redevelopment Agreement. b. Existing Conditions – The Project site is currently improved with a two-level restaurant and office building, and associated surface parking. The Project site has been inspected by Stantec and found to be in a condition that potentially qualifies it as a “Redevelopment” TIF District as defined under Minnesota Statutes. c. Project – The overall Project is described in the planning documents submitted to the City of Edina and granted preliminary zoning and site plan approvals on May 4, 2021 (“City Approvals”), is generally depicted on the attached site plan, and consists of a single, seven- 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 2 4836-8055-7046\1 story building with (1) 176 market rate apartment units, (2) 20 affordable rental apartment units (affordable at 50 percent of area median income) and (3) an approximately 3,700 square-foot restaurant (the “Minimum Improvements”). The Project will require and support additional City public infrastructure improvements as described below. Any significant change to the Project shall require review of the Project financials. If the public benefits are reduced, the HRA is entitled to reconsider TIF support. d. Public Benefits – The Minimum Improvements may be eligible for TIF assistance in accordance with this Term Sheet and the Redevelopment Agreement. Any TIF assistance is conditioned on Developer’s completion of the portion of the Minimum Improvements as specified in the Redevelopment Agreement and TIF Note, and delivery of Public Benefits, including: i. Construct a mixed-use development whose scale, mass and quality is consistent with the City Approvals. ii. Improve the sidewalk and streetscape along portions of Eden Avenue and Willson Road. iii. Improve storm water conditions on the site. iv. Provide approximately 10,500 square feet of property to the City for future transportation improvement or other public use. v. Provide permanent public art, as more particularly described below. vi. Provide 29 public parking stalls through permanent public parking easement. vii. Provide affordable housing, as more particularly described below. viii. Enable City funding for public street, pedestrian and bicyclist improvements adjacent to and related to the Project in order to create improved connections to the transportation network that serves the site and the immediate area. 4) Minimum Improvements Timeline a. This timeline identifies the general timeframe envisioned for the Minimum Improvements. Deadlines will be included in the Redevelopment Agreement(s), subject to extension for force majeure events. Failure to meet the ‘no later than’ deadlines will be considered a default of the Redevelopment Agreement, subject to notice and cure rights of the Developer set forth in the Redevelopment Agreement. Completion will be evidenced by the HRA issuing a “Certificate of Completion” to Developer for the Project. 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 3 4836-8055-7046\1 Description of Work Commencement Date Completion Date Anticipated No Later Than Anticipated No Later Than Final Zoning Approvals NA NA 10/31/2021 11/30/2021 Real Estate Acquisition Closing NA NA 12/1/21 3/1/22 Demolition 2/1/22 5/1/22 3/1/22 6/1/22 Site Remediation 3/1/22 6/1/22 4/1/22 7/1/22 Specified Site Preparation 3/1/22 6/1/22 4/1/22 7/1/22 Foundation 4/1/22 7/1/22 8/1/22 11/1/22 Shell Construction 8/1/22 11/1/22 10/1/23 2/1/24 Core Construction/Tenant Improvements 8/1/22 11/1/22 10/1/23 2/1/24 Certificate of Occupancy* NA NA 4/1/24 8/1/24 5) Minimum Improvements Budget a. The Minimum Improvements are currently estimated to cost approximately $83,763,316, including land assembly, soft costs and hard costs. b. Preliminary estimates of sources and uses for the Minimum Improvements are attached. 6) Minimum Improvements Financing a. A firm commitment from equity partner(s) are pending. Information will be provided to the HRA when available and will be referenced in the Redevelopment Agreement. b. Firm commitments for construction loans are pending. Information will be provided to the HRA when available and will be referenced in the Redevelopment Agreement. c. Applicable grants will be pursued by the City and the Developer, and any such grants received will reduce the principle value of the TIF Note. d. TIF assistance for the Minimum Improvements is being considered as described in this Term Sheet. 7) TIF Assistance a. Generally i. TIF assistance is conditioned upon the Minimum Improvements as a whole demonstrating satisfaction of the “but for” TIF test. Developer will provide all required information necessary to demonstrate that the Minimum Improvements satisfies the “but for” test in Minnesota Statute. 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 4 4836-8055-7046\1 ii. Any TIF assistance issued will be in accordance with the City’s TIF policy as reflected in the definitive Redevelopment Agreement(s). iii. Creation of any TIF district and any TIF assistance provided shall comply with all applicable Minnesota Statutes. b. TIF District. i. For the Minimum Improvements, the City and HRA will consider the creation of a new Redevelopment TIF district (the “TIF District”) covering the Project site, and adjacent areas as determined by the City and HRA. ii. The TIF District may be expanded or modified at the discretion of the City and HRA to achieve additional community goals; provided that any TIF Note awarded to the Minimum Improvements can be satisfied per the terms of the applicable Redevelopment Agreement. c. Eligible Costs. i. Based on the initial pro forma for the Minimum Improvements, Project costs incurred by the Developer that are potentially eligible for reimbursement under the TIF Act are approximately $15.8 million. The TIF Act identifies the following items as potentially eligible for TIF financing: acquisition, structured parking, surface parking, demolition, site preparation, fees, etc. d. Reimbursable Costs. i. Of the potentially eligible costs, the following items valued at approximately $5.1 million and associated with the Minimum Improvements create public benefit that would otherwise not be realized: ● Demolition of existing obsolete structures ● Public Parking (surface) ● Enhanced public realm & pedestrian improvements, including public art ● Improved stormwater system ● Land donation for future public use ● Professional costs required to create public benefits through preparation of TIF study, plan and agreements and Developer legal costs related to preparation of the Redevelopment Agreement(s). ii. Additional Public Benefits. F. The Developer, City and HRA acknowledge that approximately $11.4 million of available tax increment will not be used by the Developer, but will be retained by the HRA for Project-related City public improvement costs that improve the connectivity of the Project to the surrounding transportation network while also benefiting the nearby neighborhoods and the general public. e. TIF Notes – A single TIF note will be issued (subject to statutory procedural requirements) with the following terms and conditions: 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 5 4836-8055-7046\1 i. The “TIF Note” in the aggregate principal amount of up to $5.1 million will be issued by the HRA upon issuance of a Certificate of Completion. The TIF Note shall be subject to a future lookback/clawback based on Developer achieving a return in excess of the Market Return (defined below). This future lookback/clawback will occur first, upon stabilization of the Project rentals (as determined by the HRA) and second upon the sale of the Minimum Improvements. The Redevelopment Agreement will contain a detailed description of the lookback provisions and examples of its calculation. ii. The TIF Note will be issued upon the satisfaction of the following conditions: 1. Developer demonstrating to the HRA, by updated pro forma for the Minimum Improvements (consistent with the attached form of pro forma), that the blended return on cost for the Minimum Improvements does not exceed 6.03 % (“Market Return”). If any such updated pro forma demonstrates a return on cost in excess of the Market Return, then the HRA shall reduce the principal amount of such TIF Note being issued to only the amount necessary to assist the Minimum Improvements to achieve a Market Return 2. Principal value of the TIF Note not to exceed 6.10% of the actual development costs. 3. Certificate of Completion is issued by the HRA for all of the Minimum Improvements. 4. Developer has entered into an appropriate land transfer, maintenance and City access right document regarding the approximately 10,500 square feet of land (as indicated on attached Project Site Plan) (“Future City Land”). 5. Developer has provided the HRA with detailed financial information sufficient for HRA staff to confirm the actual Project costs and returns and confirm satisfaction of the “but for” test. 6. Review of final development costs, including line item detail on how any contingency funds have been used. The principal amount of the TIF Note may be reduced if the contingency funds have been used in a manner that enhances the private spaces with no benefit to the public. 7. Confirmation via lien waiver or similar that all parties have been paid for work that is subject to reimbursement from TIF or grants. 8. Confirmation from MnDOT regarding acceptability of improvements to and access through MnDOT property along Eden Ave. 9. Developer has executed and delivered all public easements and the acceptance of all public improvements (by City or County or MnDOT engineers, as appropriate) required by the City approvals and the Redevelopment Agreement(s). 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 6 4836-8055-7046\1 10. Developer has delivered to the HRA a final report and certificate detailing and certifying as to the Developer’s activities and final outcomes of Developer’s efforts to achieve the Equity and Inclusion goals under the Redevelopment Agreement(s). 11. Developer has satisfied all terms and conditions of the Redevelopment Agreement(s) and is not in default under the Redevelopment Agreement(s), the City approvals, or any other agreement pertaining to the Project beyond any applicable notice and cure periods. iii. The TIF Notes shall bear simple, non-compounding interest at the rate equal to the lesser of 4.00% per annum or the actual rate on the Developer’s permanent first mortgage for the Minimum Improvements. iv. Payments on the TIF notes will be made over a period of 15 years using standard procedures: two annual payments based on actual incremental property taxes generated from the site, paid and received by the City. Assuming issuance of the Certificate of Completion by the HRA in 2024, the first payments would occur in 2025. Payments on the TIF Notes will be based on the actual annual incremental property tax amounts received from the Project Site necessary to satisfy the Market Return, with the remaining percent reserved to the HRA, on a parity basis, for qualified City projects. The City currently estimates that the portion of tax increment available to the HRA for City projects will be used for portions of the final versions of the attached City Public Improvement Projects. v. Developer shall have no rights to increment collected after the initial 15-year period. vi. Any estimate of TIF cash flow projected by the City or HRA is hypothetical and there are no guarantees that such TIF proceeds will be available. vii. After issuance of the Certificate of Completion and upon reaching Project rental stabilization, the Developer shall supply the HRA with required operating revenue and expenditure information to determine whether the Minimum Improvements are exceeding the Market Return. If so, the Developer will surrender the TIF Note and HRA will reissue the TIF Note at a reduced principal amount reflecting the amount necessary for the Market Return. viii. In addition, the Redevelopment Agreement will include a requirement that, upon any sale by the Developer of the Minimum Improvements prior to receipt of the full principal amount of the TIF Note, the Developer shall supply the HRA with required internal rate of return (“IRR”) information, on a sliding scale or similar basis, to determine whether an excess IRR has been achieved, which will result in reduction of the remaining principle balance of the TIF Note at the HRA’s discretion. 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 7 4836-8055-7046\1 8) Other Terms and Conditions a. Affordable Housing i. The Project will comply with all City affordable housing policies and will contain at least 20 affordable housing units (affordable at 50 percent of area median income) (or 10 percent of the total final number of residential units) for at least 20 years following the occupancy of all 20 units by income-eligible tenants. ii. Developer to provide first right of refusal for the affordable housing units in the event that the property is converted to condominiums during the 26-year term of the Redevelopment TIF District. Developer and HRA agree to consider an extension of the 20-year term of affordability approximately 12-months prior to the conclusion of the initial term. The term of affordability will be extended only if the parties can mutually agree on a means to extend the affordability. b. Public Parking i. The proposed public parking areas are attached. At least 29 public parking stalls will be incorporated into the Project. ii. Developer will grant a permanent, public easement for access and use of the public parking by the general public, subject to reasonable, nondiscriminatory limitations, rules and regulations governing its use adopted by Developer and approved by City Manager or designee. iii. Must include typical signage that identify the “public parking’. iv. Developer will be responsible for all maintenance of the public parking. c. Public Art i. The Project shall include public art in the location generally shown on the Approved Plans. Public art shall be permanent sculpture or similar art installations. ii. Developer shall engage a professional art consultant to establish and implement a vision for public art. The City Manager shall designate up to three people to provide input and guidance to the art consultant. Costs associated with the art consultant will be paid by Developer and will be an eligible TIF expense. iii. The installation of the public art shall have a value of no less than $200,000, (exclusive of fees paid to professional art consultant). iv. Developer will be responsible for all maintenance of the public art. v. After reconstruction of the Eden/Willson intersection, Developer to be responsible for maintenance of plaza and landscape area beginning at the back of finished curb. d. Equity and Inclusion – Developer shall use good faith efforts as defined by the Minnesota Department of Human Rights to achieve the goals in the following area (as reasonably 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 8 4836-8055-7046\1 agreed by Developer and City). The Developer must provide the HRA with periodic reporting on the status of achieving these goals in form and content required by the HRA. i. An agreed percentage of the total subcontracted work will be awarded to businesses that qualify as minority and women owned business enterprises. ii. An agreed percentage of the total craft labor hours needed to deliver the Project will be contributed by persons whom are classified as BIPOC. iii. An agreed percentage of the total craft labor hours needed to deliver this project, will be contributed by persons whom are classified as women. e. Other Easements and Property Rights. i. Developer will grant a permanent, public easement for access and use of the perimeter and sidewalks and streetscape areas by the public, subject to reasonable, nondiscriminatory limitations, rules and regulations governing its use adopted by Developer and subject to the approval of the City Manager or its designee. ii. Developer agrees to grant future Easements for future mass transit (bus) stops adjacent to the Project site at no cost to City or transit, subject to the responsible transit agency being responsible for maintenance of the surface improvements in any future easement area. iii. Developer will grant a perpetual easement to the City or HRA (at City or HRA’s discretion) for the Future City Land which will allow any authorized public use by the City; with a future call right for the City or HRA to convert the ownership in the Future City Land to fee title for the minimum required consideration. 9) Grants – Developer must make good faith effort to pursue grants for the Project as selected by Developer and the City. The City/HRA agrees to sponsor grant applications that provide financial support for the Projects. Costs of preparing the grant applications shall be borne by Developer. City staff shall have the final authority to review and submit the grant applications to Metropolitan Council, Minnesota Department of Employment and Economic Development and Hennepin County per the terms of the grant programs. Any grants received for the Project will be included within the Project pro forma for determining the net impact on the Project’s return on cost, the maximum principal amount of the TIF Note, the Lookback and future lookback/clawback upon a sale of the Minimum Improvements, and for determining satisfaction of the “but for” TIF test. Following is the list of grants which may be applied for by City or Developer (as required by the particular grant program): a. Hennepin County Environmental Response Fund (ERF); b. Met. Council Tax Base Revitalization Account (TBRA); c. Met Council Livable Communities Demonstration Account (LCDA); d. DEED Contamination Cleanup Grant; and 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet Page 9 4836-8055-7046\1 e. DEED Redevelopment Grant. 10) City Administrative Costs – The City may retain up to its standard 10% of TIF proceeds per Minnesota Statute. 11) Fiscal Disparities – The City’s ‘fiscal disparity’ obligation for the redevelopment site will be paid for from property taxes generated from the Project. This will be included in the calculation of available TIF to pay off the TIF Note. 12) City and HRA Approval of Significant Changes – Changes to the Project that impact scope or design are subject to City review using the typical City procedure. 13) Performance Bonds – Bonds or other security will be required for work in public rights of way and for the elements with a public easement. 14) Default and Cure – Standard default provisions will apply. Each default will have a notice and cure period, subject to extension for force majeure delays. 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet 4836-8055-7046\1 Legal Description 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet 4836-8055-7046\1 Project Site Plan Project Site Plan 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet 4836-8055-7046\1 Project Sources and Uses 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet 4836-8055-7046\1 Pro Forma 4917 Eden Avenue Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet 4836-8055-7046\1 Public Parking 70th and France Redevelopment DRAFT August 26, 2021 Proposed TIF Term Sheet 4836-8055-7046\1 City Public Improvement Projects 4917 Eden Avenue Recommended Terms for Tax Increment Financing Edina Housing and Redevelopment Authority August 26, 2021 www.EdinaMN.gov 2Photo Source: Minnesota Historic Society Background -Current Conditions -2.0 acre site -Built 1973 -Restaurant with office and warehouse -Land value exceeds value of structure 4917 3 Granted preliminary rezoning approval JULY 2021 Background -Proposed Project 4Photo Source: Minnesota Historic Society Background -Proposed Project Granted preliminary rezoning approval JULY 2021 5Photo Source: Minnesota Historic Society Granted preliminary rezoning approval JULY 2021 Background -Proposed Project 6Photo Source: Minnesota Historic Society Granted preliminary rezoning approval JULY 2021 Background -Proposed Project Granted preliminary rezoning approval JULY 2021 7Photo Source: Minnesota Historic Society Background-Potential Public Roadway Improvements •Eden/Willson Intersection •Eden Ave •Grange Road •50th Street 8 Request for TIF Developer requested $5.1million over 15 years to make redevelopment project viable. This request has been analyzed and evaluated. •A substantial budget gap has been confirmed. •This gap can be resolved through the combination of: -Tax Increment Financing -Outside grants gap •Economic development financing tool used throughout the U.S. •Governed by Minnesota Statute •Enabled by City Council •“Tax Increment” Financing -uses growth in property tax base to fund private investment and public infrastructure 9 What is TIF? Availability of Property Taxes to Taxing Agencies “Incremental Taxes” Remain in TIF District Original + Market Value Taxes Available to All Original + Incremental Taxes Available to All Year 1 Year 15 Year 26 Year 40+ 11 Staff Evaluation –Public Benefits •High quality mixed-use development •Increase property tax base •Improve storm water conditions •Public sidewalks and streetscapes, including public art •Affordable housing (20 units for 20 years) •Public parking (29 stalls) •Land for future public use (roadway) •Enable adjacent public roadway improvements 12 Staff Evaluation –Sources and Uses USES Amount Percent Acquisition and Land Costs $ 12,000,000 14% Construction Hard Costs including:$ 56,025,069 67% Parking 12,188,680 Soil Correction & Remediation 750,000 Public Plaza 200,000 Soft Costs including:$ 15,238,247 19% Developer Fee $ 2,817,359 3.4% Financing Costs $ 4,015,980 4.8% Contingency $ 2,150,000 2.6% TOTAL $83,763,316 SOURCES Amount Equity -developer $ 20,028,995 24% Equity -TIF supported $ 5,100,000 6% Mortgage $ 58,634,321 70% Grants $ TBD 0% TOTAL $83,763,316 100% 13 Staff Evaluation –Acquisition Costs Land acquisition costs are on the high end of normal range $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Comparable Real Estate Sales -Edina & Mpls Price per Unit Price per Land Sq Ft 14 Staff Evaluation –Operating Pro Forma Year 1 Stabilization Year 2 Net Income -Residential -Commercial -Effective Gross Income 4,052,936 77,688 4,130,624 6,496,370 109,588 6,605,958 Expenses -Residential -Commercial -TOTAL 1,179,443 0 1,179,443 2,005,462 31,317 2,036,779 Net Operating Income 2,951,181 4,569,179 TIF reimbursement 0 456,620 (estimate) Adjusted NOI 2,951,181 5,025,799 Returns Analysis -Cash on Cost w/o TIF -Cash on Cost with TIF 3.5% (< market) 3.5% (< market) 5.5% (< market) 6.0% (= market) Annual TIF Reimbursement Total Dev. Cost 83,763,316 Stabilized NOI 4,569,179 6% Return Target 5,025,799 Financing Gap = 456,620 15 Recommended Terms Private Redevelopment 1.Create a 26-year Redevelopment TIF District 2.Pledge $5.1 million TIF Note paid from incremental tax revenue over 15 years 3.Pursue grants from DEED and Met. Council to reduce gap Public Roadway Improvements 4.City to prepare engineering documents for related public roadway improvements and plan for construction within 5-years 16 Recommended Terms •Earns 4.00% interest (to match debt) •Payable from no more than 90% of incremental taxes for first 15 years •-actual amount currently estimated to be < 70% of incremental taxes TIF Note •Issued after all conditions successfully delivered and documented •Sized based on actual costs at completion •Not to exceed $5.1 million •Potentially resized at stabilization •Subject to “lookback” and “clawback” upon sale Recommended Terms 17 Public Benefits –Streetscapes •Permanent easements for public sidewalks and plaza •Public plaza with public art sculpture •Future easement for mass transit access Public Benefits –Parking and Future Roadway •Permanent easement for 29 parking stalls •-Reasonable rules to ensure these areas are properly used •Easement and dedication of approx. 10,500 sq ft land for future roadway or public us 18 Recommended Terms •City retains first right to purchase if building is converted to condominium •Both parties agree to discuss –in good faith –opportunities to extend term past 20 years prior to termination Public Benefits –Affordable Housing •10% of total units priced to be affordable to families earning 50% Area Median Income (AMI) •20-year term of affordability •Units are scattered throughout building •All residents have same access to all amenities 19 Recommended Terms Public Benefits –Advancing Equity Goals •Goals identified •-Portion of work awarded to MBE and WBE •-Portion of total job hours filled by BIPOC •-Portion of total job hours filled by women •Good faith efforts required •Developer must submit outreach plan, monitor activity and report results •Penalty only if no effort made Image Source: Commercial Construction and Renovation 20 Recommended Terms Public Benefits –Adjacent Transportation Improvements •Improvements for pedestrians, bicyclists and drivers •Benefit 4917 site, adjacent neighborhoods and general public •Potentially including •-Eden –Willson intersection •-Grange –50th St intersection •-50th St turn lanes and sidewalks •-Grange Rd sidewalks •-Eden Ave sidewalks 21 Recommended Terms In summary, staff recommends: 1)Creation of a 26-year Redevelopment TIF District 2)Issuance of a single TIF Note not to exceed $5.1million 3)Prepare for future adjacent public roadways improvements 4)Approval of Term Sheet and authorization to prepare full legal agreement 22 Questions / Discussion Date: August 26, 2021 Agenda Item #: VI I.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:R es olution No. 2021-08: C all for a P ublic Hearing on the P roposed Modific ations to the R edevelopment P lan for the S outheast Edina R edevelopment P rojec t Area and Eden/Willson Tax Increment F inancing P lan Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve R esolution 2021-08. I N TR O D U C TI O N: T his item calls for a future public hearing on the proposed modifications to the redevelopment plan for the S outheast Edina Redevelopment P roject area and and consideration of the E den/Willson Tax Increment F inancing P lan. T he execution of this R esolution is related to the Term Sheet prepared for the potential redevelopment of the commercial site at 4917 Eden Avenue. I f there is general support for pursuing a T I F Redevelopment Agreement for that project, the H R A and C ity will follow the state-mandated review process to consider creation of a new T I F District. Approval of this R esolution would be the first step in that process. I f there is no support for providing public financing for that project, this Resolution is not necessary. AT TAC HME N T S: Description Resolution 2021-08 - call for public hearing Housing and Redevelopment Authority RESOLUTION NO. 2021-08 REQUESTING THE CITY COUNCIL OF THE CITY OF EDINA CALL FOR A PUBLIC HEARING ON THE PROPOSED ESTABLISHMENT OF THE EDEN/WILLSON TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) 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, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the HRA is proposing the modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area (“Redevelopment Plan Modification”) to include the establishment of the Eden/Willson Tax Increment Financing District and adoption of a Tax Increment Financing Plan therefor (the Redevelopment Plan Modification and Eden/Willson Tax Increment Financing Plan are referred to collectively herein as the "Plans"), all pursuant to and in accordance with Minnesota Statutes, Sections 469.174 through 469.1794 and Sections 469.001 to 469.047, inclusive, as amended; and NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The HRA hereby requests that the City Council call for a public hearing on October 19, 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. 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 District No. 273 in which the Southeast Edina Redevelopment Project Area is located no later than September 17, 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 August 26, 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 August 26, 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: August 26, 2021 Agenda Item #: VI I.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:R es olution 2021-09: Adopting Modific ations of the Tax Inc rement F inanc ing P lan for the S outhdale 2 Tax Increment F inancing Dis tric t Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve R esolution 2021-09. I N TR O D U C TI O N: R ecent changes to Minnesota T I F laws allow modifications to the budget of the Southdale 2 T I F District. After discussions with Ehlers Associates, the H R A's public finance advisors, a modification to the T I F P lan has been prepared. P lease note, that only the budget is modified. T here is no change to the D istrict boundaries and no extension of the decertification date. T his budget amendment will allow more of the incremental property taxes to be used for affordable housing in Edina. S taff recommends R esolution 2021-09 be approved. AT TAC HME N T S: Description HRA Resolution 2021-09 Southdale 2 TIF Plan- modification #4 Housing and Redevelopment Authority RESOLUTION NO. 2021-09 ADOPTING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE SOUTHDALE 2 TAX INCREMENT FINANCING DISTRICT 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”) and Modification to the Tax Increment Financing Plan (the “TIF Plan Modification”) for the Southdale 2 Tax Increment Financing District (the “District”) therein (the Redevelopment Plan Modification and TIF Plan Modification are referred to collectively herein as the “Modification”), 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 Modification and presented for the Board's consideration; and WHEREAS, the substantive changes within the Modification include increasing the estimate of the budgeted expenditures for project costs that will be paid or financed using District funds. The boundaries of the District and Project Area are not being enlarged and the duration of the District is not being extended; and WHEREAS, the HRA has investigated the facts relating to the Modification and has caused the Modification to be prepared; and WHEREAS, the HRA has performed all actions required by law to be performed prior to the adoption of the Modification. The HRA has also requested the City Planning Commission to provide for review of and written comment on the Modification and that the Council schedule a public hearing on the Modification upon published notice as required by law. NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The HRA hereby reaffirms the original findings for the District, established as an “economic development district” within the meaning of the Act, and finds that the adoption of the proposed Modification conforms in all respects to the requirements of the Act and will result in creation or retention of jobs in the State of Minnesota (the “State”), preserve and enhance the tax base of the State, and help fulfill a need to develop an area of the State for affordable and high-qualify housing and thereby serves a public purpose. 2. The HRA further finds that the Modification 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 reasons and facts supporting the findings in this resolution are described in the Modification. Edina HRA Resolution 2021-__ 4. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Modification, 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. 5. Upon approval of the Modification by the City Council, the staff, the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Modification 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 Modification does not constitute approval of any project or a development agreement with any developer. 6. Upon approval of the Modification by the City Council, the Executive Director of the HRA is authorized and directed to forward a copy of the Modification to the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 7. The Executive Director of the HRA is authorized and directed to forward a copy of the Modification to the Hennepin County Auditor. Approved by the Board on August 26, 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 August 26, 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: April 17, 2012 Modification #1: April 5, 2016 Modification #2: November 20, 2018 Modification #3: December 17, 2019 Modification #4: Public Hearing - September 9, 2021 Edina Housing and Redevelopment Authority City of Edina, Hennepin County, Minnesota MODIFICATION #4 to the Tax Increment Financing (TIF) Plan Southdale 2 Tax Increment Financing District Located in Southeast Edina Redevelopment Project Area (an economic development district) BUILDING COMMUNITIES. IT’S WHAT WE DO. Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, Minnesota 55113 TABLE OF CONTENTS Modification #4 to the Tax Increment Financing Plan for Southdale 2 Tax Increment Financing District 1 FOREWORD 1 STATUTORY AUTHORITY 1 STATEMENT OF OBJECTIVES 1 ESTIMATED SOURCES OF REVENUE/BONDS TO BE ISSUED 2 USES OF FUNDS 3 Appendix A: Southdale 2 TIF Plan – through Modification #3 as of December 17, 2019 4 Edina Housing and Redevelopment Authority Southdale 2 Tax Increment Financing District 1 Modification #4 to the Tax Increment Financing Plan for Southdale 2 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 expedite a modification to the Tax Increment Financing Plan (the “TIF Plan”) of the Southdale 2 Tax Increment Financing District (the "District"), an economic development tax increment financing district, located in Southeast Edina Redevelopment Project Area (the “Project Area”). The proposed modification amends only sections 2-9 and 2-10 of the TIF Plan. This modification does not affect the boundaries of the District, the land use of parcels located within the District, nor the project for which the District was originally created. 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, 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 Modification #4 to the TIF Plan for the District (the “Modification”). This Modification is subject to M.S. Section 469.175, subdivision 4. The substantive changes include increasing the estimate of the cost of the project, including administrative expenses, that will be paid or financed with tax increment from the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Southeast Edina Redevelopment Project Area and the existing TIF Plan herein as Appendix A. STATEMENT OF OBJECTIVES The District currently consists of 255 parcels of land and adjacent roads and internal rights-of-way and is scheduled to expire at the close of 2021. The Modification is being created to increase the estimated project costs to be financed or paid from tax increment collected from the District until its expiration to include additional affordable housing project costs as enabled by the Special Housing TIF Legislation. Edina Housing and Redevelopment Authority Southdale 2 Tax Increment Financing District 2 The Modification is a continuation of the TIF Plan and is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Project Area. The activities contemplated in the Modification do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Project Area and the District. There are no additional anticipated fiscal impacts associated with the Modification. A copy of the proposed Modification was furnished to Hennepin County and Independent School Districts 273 and 280 for comment prior to formal approval. ESTIMATED SOURCES OF REVENUE/BONDS TO BE ISSUED As modified September 9, 2021 Subsection 2-9 of the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District shall be amended as follows: SOURCES OF FUNDS December 17, 2019 September 9, 2021 Tax Increment $30,620,000 $31,950,000 Interest 500,000 1,400,000 Land Sale Proceeds/Lease Revenue - 598,409 TOTAL $31,120,000 $33,948,409 The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. Although not anticipated, the HRA and/or the City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan modification. This provision does not obligate the HRA or the City to incur debt. The HRA and or the City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the HRA. The HRA and or the 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 principal amount of $32,448,409. 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. Edina Housing and Redevelopment Authority Southdale 2 Tax Increment Financing District 3 USES OF FUNDS As modified September 9, 2021 Subsection 2-10 of the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District shall be amended as follows: The September 9, 2021 amendment contains the cumulative estimated project costs, including the previously identified costs from the original and previous amendments. The total project cost, including financing costs (interest) listed in the table below does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. USES OF TAX INCREMENT FUNDS December 17, 2019 September 9, 2021 Land/Building Acquisition $4,000,000 $4,000,000 Site Improvements/Preparation 2,274,296 2,948,409 Utilities - 1,700,000 Other Qualifying Improvements 5,000,000 6,000,000 Affordable Housing 15,167,783 16,700,000 Administrative Costs (up to 10%) 1,100,000 1,100,000 PROJECT COSTS TOTAL $27,542,079 $32,448,409 Interest 3,577,921 1,500,000 PROJECT AND INTEREST COSTS TOTAL $31,120,000 $33,948,409 Estimated capital and administrative costs listed above associated with the District are subject to change among categories without further 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 M.S., Section 469.1763, Subdivision 2(d) and the Special Housing TIF Legislation, the HRA and City may expend funds for qualified housing activities outside of the District boundaries. Edina Housing and Redevelopment Authority Southdale 2 Tax Increment Financing District 4 Appendix A: Southdale 2 TIF Plan – through Modification #3 as of December 17, 2019 MODIFICATION TO THE REDEVELOPMENT PLAN Southeast Edina Redevelopment Project Area -AND - MODIFICATION TO THE TAX INCREMENT FINANCING PLAN Southdale 2 Tax Increment Financing District (an economic development district) Edina Housing and Redevelopment Authority City of Edina, Hennepin County, Minnesota Adopted: April 17, 2012 Modification #1: April 5, 2016 Modification #2: November 20, 2018 Modification #3: December 17, 2019 Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area............................1-1 Foreword..............................................................1-1 Section 1 - Municipal Action Taken.............................................1-1 Section 2 - Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District............................2-1 Subsection 2-1.Foreword...............................................2-1 Subsection 2-2.Statutory Authority........................................2-1 Subsection 2-3.Statement of Objectives....................................2-1 Subsection 2-4.Redevelopment Plan Overview...............................2-2 Subsection 2-5.Description of Property in the District and Property to be Acquired...2-3 Subsection 2-6.Classification of the District.................................2-3 Subsection 2-7.Duration and First Year of Tax Increment of the District............2-4 Subsection 2-8.Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements................2-4 Subsection 2-9.Sources of Revenue/Bonds to be Issued.......................2-6 Subsection 2-10.Uses of Funds...........................................2-7 Subsection 2-11.Fiscal Disparities Election...................................2-9 Subsection 2-12.Business Subsidies.......................................2-9 Subsection 2-13.County Road Costs......................................2-10 Subsection 2-14.Estimated Impact on Other Taxing Jurisdictions.................2-10 Subsection 2-15.Supporting Documentation.................................2-14 Subsection 2-16.Definition of Tax Increment Revenues........................2-14 Subsection 2-17.Modifications to the District.................................2-14 Subsection 2-18.Administrative Expenses..................................2-15 Subsection 2-19.Limitation of Increment....................................2-16 Subsection 2-20.Use of Tax Increment.....................................2-16 Subsection 2-21.Excess Increments.......................................2-17 Subsection 2-22.Requirements for Agreements with the Developer...............2-17 Subsection 2-23.Assessment Agreements..................................2-18 Subsection 2-24.Administration of the District................................2-18 Subsection 2-25.Annual Disclosure Requirements............................2-18 Subsection 2-26.Reasonable Expectations..................................2-18 Subsection 2-27.Other Limitations on the Use of Tax Increment.................2-18 Subsection 2-28.Summary..............................................2-19 Appendix A Project Description......................................................A-1 Appendix B Maps of the Southeast Edina Redevelopment Project Area and the District...........B-1 Appendix C Description of Property to be Included in the District.............................C-1 Appendix D Estimated Cash Flow for the District.........................................D-1 Appendix E Minnesota Business Assistance Form........................................E-1 Appendix F Findings Including But/For Qualifications.....................................F-1 Appendix G Prior Improvements......................................................G-1 Appendix H Special Legislation......................................................H-1 Appendix I Housing Qualifications....................................................I-1 Section 1 - Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area Forew ord The following text represents a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Southeast Edina Redevelopment Project Area. Because the Southdale 2 Tax Increment Financing District (the “District”) is located within the Southeast Edina Redevelopment Project Area, the modification to the District must be listed in the Redevelopment Plan. Therefore, the following bold-faced text represents a Modification to Section 1 of the Redevelopment Plan. Section 1 - Municipal Action Taken Based upon the statutory authority described in the Redevelopment Plan attached hereto, 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 and amendments have 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 subsequent ly 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 Plan. October 5, 1981: The Southeast Edina Redevelopment 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 Plan which includes the establishment of an interest reduction program and enlarges the project area to include the “1985 Project Area.” August 19, 1985: The HRA and the City approve d the First Amendment to the 1985 Amendment to the Southeast Edina Redevelopment Plan to enlarge the 1985 Project Area and to authorize the issuance of additional bonds to acquire land within the enlarged 1985 Project Area. 1987: The HRA and City approved the 1987 Amendments to the Southeast Edina Redevelopment Plan to enlarge the project area to include the 1987 Project Area. Edina Housing and Redevelopment Authority Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-1 1988: The HRA and City approved the 1988 Amendments to the Southeast Edina Redevelopment Plan that provide an Interest Reduction Program in the amount of $2,500,000 to assist in the financing and construction of housing units, and authorizes the HRA and City to incur bonded indebtedness. February 21, 2012 : The HRA and City expand the Southeast Edina Project Area as can be seen in Appendix A. 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 establishing the 66 West Tax Increment Financing District. June 20, 2017: The HRA and City establish the 50th and France 2 Tax Increment Financing District. October 16, 2018: The HRA and City establish the 44th and France 2 Tax Increment Financing District. November 20, 2018: The HRA and City modify the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District to increase the TIF Budget and enable special legislation pooling authority for affordable housing. November 20, 2018: The HRA and City establish the West 76th Street Tax Increment Financing District. March 19, 2019: The HRA and City establish the 72nd and France Tax Increment Financing District. (AS MODIFIED DECEMBER 17, 2019) December 17, 2019: The HRA and City modify the Tax Increm ent Financing Plan for the Southdale 2 Tax Increment Financing District to designate additional propert y to be acquired and est ablish the Amundson Avenue Tax Increm ent 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 Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area 1-2 Section 2 - Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District Subsection 2-1.Forew ord The Edina Housing and Redevelopment Authority (the "HRA"), the City of Edina (the "City"), staff and consultants have prepared the following information to expedite the establishment of the Southdale 2 Tax Increment Financing District (the "District"), an economic development tax increment financing district, located in the Southeast Edina Redevelopment Project Area (the "Project Area"). Subsection 2-2.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 to 469.047, inclusive, as amended, and M.S., Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This District is being created pursuant to M.S., Section 469.176, Subd. 4c(d). (AS MODIFIED NOVEMBER 20, 2018) This District is being modified to reflect Minnesota Session Laws 2017, Chapter 1, HF No. 1, Article 6, Sec. 11 and Sec. 16. (AS MODIFIED DECEMBER 17, 2019) This District is being modified to reflect Minnesota Session Laws 2019, First Special Session Chapter 6, Article 7, Sec. 3 (the “Special TIF Housing Legislation”). 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. Subsection 2-3.Statement of Objectives The District currently consists of 300 parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate renovations to the common areas of Southdale Mall in the City. Please see Appendix A for further District information. The HRA and City are considering entering into a redevelopment agreement that would designate Southdale Limited Partnership as the developer. 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 Redevelopment Plan 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 the Southeast Edina Redevelopment Project Area and the District. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-1 (AS MODIFIED APRIL 5, 2016) The District is being modified in order to remove one parcel and to authorize pooling dollars for affordable housing purposes pursuant to M.S., Section 469.1763, Subd. 2(d). Because the current net tax capacity of the parcel is lower than the frozen net tax capaci ty, the modification to the District must go through the entire public hearing process pursuant to M.S., Section 469.175, Subd. 4. (AS MODIFIED NOVEMBER 20, 2018) The District is being modified to increase the estimated affordable housing project costs to be financed by tax increment from the District as enabled by Minnesota Session Laws 2017, Chapter 1, HF No. 1, Art icle 6, Sec. 11 and Sec. 16. The Modification will allow the HRA and City to “treat expenditures from the District for a housing project of a district established under this section as expenditures qualifying under Minnesota Statues, 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 geographi c area of the district permitted under that section.” (AS MODIFIED DECEMBER 17, 2019) The District is being modified to designate additional property to be acquired by the HRA or City for affordable housing purposes under provi sions of the TIF Act and Special TIF Housing Legislation as further descri bed in the TIF Plan. Subsection 2-4.Redevelopment Plan Overview 1.Property to be Acquired - Selected 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. 5.The City proposes both public and private infrastructure within the District. The proposed improvements to private property within the District will be for a renovation to a retail mall, and there will be continued operation of the Southeast Edina Redevelopment Project Area after the capital improvements within the Southeast Edina Redevelopment Project Area have been completed. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-2 Subsection 2-5.Description of Property in the District and Property to be Acquired The District encompasses all property and adjacent rights-of-way and abut ting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City currently owns parcels to be included in the District and intends to acquire land easements and/or additional property within the District. The HRA and City are authorized to use tax increments to acquire any parcel listed in Appendix C of this TIF Plan. (AS MODIFIED NOVEMBER 20, 2018) The HRA or City authorizes the use of tax increments to acquire additional property currently identified as 4100 76th Street West. PID# 31-028-24-41-0010. (AS MODIFIED DECEMBER 17, 2019) The HRA or City authorizes the use of tax increments to acquire additional property including supporting interior and adjacent street, trail or utility rights of way current ly identified as: 4040 70th Street West. PID# 30-028-24-44-0004 7075 Amundson Avenue. PID# 08-116-21-11-0009 7079 Amundson Avenue. PID# 08-116-21-11-0021 Subsection 2-6.Classification of the District The District is an economic development district as defined in M.S. 469.174, Subd. 12, as modified by M.S., Section 469.176, Subd. 4c(d). In order to create an economic development district under general law (M.S., Section 469.174 Subd. 12), the HRA or City must find that the District is in the public interest because: (1)it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or (2)it will result in increased employment in the state; or (3)it will result in preservation and enhancement of the tax base of the state. In addition, M.S., Section 469.176, Subd. 4c provides that assistance from an economic development district may not be used to provide assistance to development if more than 15 percent of the buildings and ancillary facilities (determined on a square footage basis), are used for other than certain specified purposes (largely manufacturing, warehousing and distribution facilities). However, M.S., Section 469.176, Subd. 4c(d) provides a limited-time exception to these general law rules. Under this provision (originally enacted in 2010 legislature and extended in 2011 legislature), a City may establish an economic development of any kind, notwithstanding the normal findings required under M.S., Section 469.174, Subd. 12, and notwithstanding the limitation on types of assisted development under M.S., Section 469.176, Subd. 4c. To satisfy the requirement of M.S., Section 469.176, Subd. 4c(d), the City finds that: Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-3 (1)the project will create or retain jobs in this state, including construction jobs and that construction of the project would not have commenced before July 1, 2012, without the City and HRA providing assistance under t he provisions of this paragraph; (2) construction of the project will begin no later than July 1, 2012; and (3) the request for certification of the district is made no later than June 30, 2012; and In meeting the statutory criteria the HRA and City rely on the following facts and findings: The City’s findings in creating the District is pursuant to M.S. Sections 469.176, Subd. 4c(d) in order to assist in the renovations to the common areas of Southdale Mall. If construction does not commence on or before July 1, 2012, the proposed facility will need to meet the criteria in M.S., Section 469.176, Subd. 4c(a), and must satisfy the findings required under M.S., Section 469.174, Subd. 12 . 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 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7.Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 8 years after receipt of the first increment by the HRA or City. The date of receipt by the City of the first tax increment is expected to be 2014. T hus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2022, or when the TIF Plan is satisfied. If increment is received in 2013, the term of the District will be 2021. The HRA or City reserves the right to decertify the District prior to the legally required date. (AS MODIFIED APRIL 5, 2016) Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the District must be indicated within the Tax Increment Financing Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the District will be 8 years after receipt of the first increment by the HRA or City. The date of receipt by the City of the first tax increment was August 2013. Thus, it is estimated that the District, including any modification to the Tax Increment Financing Plan for subsequent phases or other changes, would terminate after December 31, 2021, or when the Tax Increment Financing Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. Subsection 2-8.Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements 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 2011 for taxes payable 2012. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2014) the amount by which the original value has increased or decreased as a result of: 1.Change in tax exempt status of property; 2.Reduction or enlargement of the geographic boundaries of the district; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-4 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 2012, assuming the request for certification is made on or before June 30, 2012. 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 the Southeast Edina Redevelopment Project Area, upon completion of the projects 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 2014. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Southdale 2 Tax Increm ent District Parcels in School District No. 273 Project Estimated Tax Capacity upon Completion (PTC)$4,714,500 Original Estimated Net Tax Capacity (ONTC)$4,457,873 Fiscal Disparities Reduction $65,592 Estimated Captured Tax Capacity (CTC)$191,035 Original Local Tax Rate 1.08160 Estimated Pay 2012 Estimated Annual Tax Increment (CTC x Local Tax Rate)$206,623 Percent Retained by the HRA and City 100% The tax capacity included in this chart is the estimated tax capacity of the District in year 9. The tax capacity of the parcels located in School District 273 in year one is estimated to be $4,458,033.The fiscal disparities reduction will vary from year to year. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-5 Southdale 2 Tax Increment District Parcels in School District No. 280 Project Estimated Tax Capacity upon Completion (PTC)$5,858,175 Original Estimated Net Tax Capacity (ONTC)$4,121,297 Fiscal Disparities Reduction $504,487 Estimated Captured Tax Capacity (CTC)$1,232,391 Original Local Tax Rate 1.14351 Estimated Pay 2012 Estimated Annual Tax Increment (CTC x Local Tax Rate)$1,409,251 Percent Retained by the HRA and City 100% The tax capacity included in this chart is the estimated tax capacity of the District in year 9. The tax capacity of the parcels in the District located in School District 280 in year one is estimated to be $4,887,371. The fiscal disparities reduction will vary from year to year. 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 dur ing 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 original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and has found building permits that were issued in the past 18 months prior to the public hearing. Please see Appendix G for the building permits that were issued. Subsection 2-9.Sources of Revenue/Bonds to be Issued 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 as a result of the TIF Plan. As presently proposed, the projects within the District will be finance d by an interfund loan. 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 total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $11,702,217 Interest $250,000 Land Sale Proceeds/Lease Revenue $0 TOTAL $11,952,217 Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-6 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 principal amount of $8,374,296. 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. (AS MODIFIED NOVEMBER 20, 2018) The District is being modified to increase the total estimated tax increment revenues for the District as shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $30,620,000 Interest $500,000 Land Sale Proceeds/Lease Revenue $0 TOTAL $31,120,000 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 principal amount of $27,542,079. 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. Subsection 2-10.Uses of Funds Currently under consideration for the District is a proposal to facilitate renovations to the common areas of Southdale Mall. The HRA and City have determined that it will be necessar y to provide assistance to the project(s) for certain District costs, as described. The HRA has st udied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or 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. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $0 Site Improvements/Preparation $2,274,296 Other Qualifying Improvements $5,000,000 Administrative Costs (up to 10%)$1,100,000 PROJECT COST TOTAL $8,374,296 Interest $3,577,921 PROJECT AND INTEREST COSTS TOTAL $11,952,217 Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-7 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 i n Appendix D. (AS MODIFIED NOVEMBER 20, 2018) The District is being modified in order to increase the estimate of public costs and uses of funds associated with the District as outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $4,000,000 Site Improvements/Preparation $2,274,296 Utilities $0 Other Qualifying Improvements $5,000,000 Construction of Affordable Housing $15,167,783 Administrative Costs (up to 10%)$1,100,000 PROJECT COST TOTAL $27,542,079 Interest $3,577,921 PROJECT AND INTEREST COSTS TOTAL $31,120,000 Estimated capital and administrative costs listed above are subject to change among categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. Further, the HRA or City may spend up to 20 percent of the tax increments from the District for activities (described in the table above) located outside the boundaries of the District but within the boundaries of the Project Area (including administrative costs, which are considered to be spend outside the District), subject to all other terms and condi tions of this TIF Plan. (AS MODIFIED APRIL 5, 2016) Pursuant to M.S., Section 469.1763, Subd. 2(d), the HRA and City may elect to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the District. The HRA and City intend to pool $550,000 from the project costs of the District to be used to assist housing that meets the requirements contained in M.S., Sect ion 469.1763, Subd. 2(d). (AS MODIFIED NOVEMBER 20, 2018) Pursuant to Minnesota Session Laws 2017, Chapter 1, HF No. 1, Article 6, section 11 and Sec. 16, the HRA and City may elect to increase by an additional 25 percentage points (a total of 55 percent) the permitted amount of expenditures for activities located outside the geographic area of the District. The HRA and City intend to pool funds from the project costs of the District to be used to assist housing that meets the requirements contained in M.S., Section 469.1763, Subd. 2(d). Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-8 Subsection 2-11.Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, clause b, the HRA or City must calculate fiscal disparities using the following method of computation: (1)The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2)The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generat ed by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. Subsection 2-12.Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2)Assistance that is generally available to all businesses or to a general class of similar businesses, such as a l ine of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous subst ance subdi strict as defined under M.S., Section 469.174, Subd. 23 ; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-9 (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor 's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapt er 8100. The HRA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13.County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the HRA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the HRA or City within forty- five days of receipt of this TIF Plan. In the opinion of the HRA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The HRA and City are aware that the county could claim that tax increment should be used f or county roads, even after the public hearing. Subsection 2-14.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 or City has determined that such development or 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 Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-10 IMPACT ON TAX BASE FOR PARCELS LOCATED IN SCHOOL DISTRICT NO. 273 Estimated 2011/Pay 2012 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,253,423,199 191,035 0.0152% City of Edina 96,048,515 191,035 0.1989% Edina ISD No. 273 81,542,007 191,035 0.2343% IMPACT ON TAX RATES Estimated Pay 2012 Extension Rates Percent of Total CTC Potential Taxes Hennepin County 0.487770 45.10%191,035 93,181 City of Edina 0.259080 23.95%191,035 49,493 Edina ISD No. 273 0.224280 20.74%191,035 42,845 Other 0.110470 10.21%191,035 21,104 Total 1.081600 100.00%206,623 IMPACT ON TAX BASE FOR PARCELS LOCATED IN SCHOOL DISTRICT NO. 280 Estimated 2011/Pay 2012 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Hennepin County 1,253,423,199 1,232,391 0.0983% City of Edina 96,048,515 1,232,391 1.2831% Richfield ISD No. 280 29,902,478 1,232,391 4.1214% Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-11 IMPACT ON TAX RATES Estimated Pay 2012 Extension Rates Percent of Total CTC Potential Taxes Hennepin County 0.487770 42.66%1,232,391 601,123 City of Edina 0.259080 22.66%1,232,391 319,288 Richfield ISD No. 280 0.282900 24.74%1,232,391 348,643 Other 0.113760 9.95%1,232,391 140,197 Total 1.143510 100.00%1,409,251 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the estimated Pay 2012 rate. The total net capacity for the entities listed above are based on estimated Pay 2012 figures. The District will be certified under the actual Pay 2012 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 that will be generated over the life of the District is $11,702,217; (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. The Edina Police Department does track all calls for service including property-type calls and crimes. With increased traffic at Southdale Center mall, police calls for service will be increased. However, the proposed mall renovations include changes to common areas designed, in part, to reduce security concerns and police calls, such as the relocation of the transit facility to mall property outside of the mall itself. In addition, proposed housing developments will generate increased police calls. The City does not expect that the proposed development, in and of itself, will necessitate new capi tal investment in vehicles. 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. Several of the existing buildings, proposed to be replaced or renovated , have public safety concerns that include several unprotected old buildings with issues such as access, hy drant locations, and lack of sprinkling. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area, and is expected to enhance the flow of public transit vehicles in and around the Southdale area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Potential housing development will generate in excess of $180,000 in sewer and water access charges. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The developer will negotiate maintenance of the proposed transit hub with the Metropolitan Council. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-12 general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to Edina ISD No. 273 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 $293,548; (4) Estimated amount of tax increment attributable to Richfield ISD No. 280 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 $2,544,966; (5) 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 $5,026,701; (6) 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. No requests for additional information from the county or school district regarding the proposed development for the District have been received. (AS MODIFIED APRIL 5, 2016) There are no additional fiscal impacts associated with the Modification of this TIF Plan. A copy of the proposed TIF Plan Modification was furnished to the county and school district for comment. Edina Public Schools has requested additional information regarding the proposed development for the 66 West TIF District. The City Manager has responded and pr ovided additional information. (AS MODIFIED NOVEMBER 20, 2018) There are no additional fiscal impacts associated with the Modification of this TIF Plan. Separate fiscal impact estimates will be provided within the TIF Plan under consideration for any district created under the authority of Minnesota Session Laws 2017, Chapt er 1, HF No. 1, Art icle 6, Sec. 11 and 16. A copy of the proposed TIF Plan Modification was furnished to the county and school district for comment. (AS MODIFIED DECEMBER 17, 2019) There are no additional fiscal impacts associated with the Modification of this TIF Plan. Separate fiscal impact estimates will be provided within the TIF Plan under consideration for any district created under the authority of the Special TIF Housing Legislation. A copy of the proposed TIF Plan Modification was furnished to the county and school districts for comment. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-13 Subsection 2-15.Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used t o 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. Following is a list of reports and studies on file at the City that support the HRA and City's findings: •Greater Southdale Area Land Use and T ransportation Study, December 2005 •Edina Comprehensive Plan Update 2008 •Developer correspondence and Sum mary of Renovation Costs, February 2011 Subsection 2-16.Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25 , tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1.Taxes paid by the captured net tax capaci ty, but excluding any excess taxes, as computed under M.S., Section 469.177; 2.The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3.Principal and interest received on loans or other advances made by the Authority with tax increments; 4.Interest or other investment earnings on or from tax increments; 5.Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6.The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-17.Modifications to the District In accordance with M.S., Section 469.175, Subd. 4 , any: 1.Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2.Increase in amount of bonded indebtedness to be incurred; 3.A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4.Increase in the portion of the captured net tax capacity to be retained by the HRA or City; 5.Increase in the estimate of the cost of the District, including administrative expenses, t hat will be paid or financed with tax increment from the District; or 6.Designation of additional property to be acqui red by the HRA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. If the District qualifies for certification only under M.S. Section 469.176, Subd. 4c(d), than the District boundaries may not be enlarged after July 1, 2012. Pursuant to M.S., Section 469.175 Subd. 4(f), the geographic area of the District may be reduced following the date of certification of the original net tax capacity by the county auditor, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-14 District equals or exceeds t he net tax capaci ty of those parcel(s) in the District's original net tax capaci ty or (B) the HRA agrees that, notwithstanding M.S., Section 469.177, Subd. 1 , the original net tax capaci ty will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The HRA or City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the HRA or City, other than: 1.Amounts paid for the purchase of land; 2.Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3.Relocation benefits paid to or services provided for persons residing or businesses located in the District; or 4.Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5.Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses al so include amounts paid for services provided by bond counsel , fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3 , tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 per cent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Sect ion 469.174, Subd. 25, cl ause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, cl ause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h , tax increments may be used t o pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3 . The county may require payment of those expenses by February 15 of the year following the year the expenses wer e incurred. Pursuant to M.S., Section 469. 177, Subd. 11 , the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the HRA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adj usted annually by the Commissioner of Revenue. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-15 Subsection 2-19.Limitation of Increment The tax increment pledged to the payment of bonds and i nterest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6 : if, after four years f rom the date of certification of the original net tax capaci ty of the tax increment financing district pursuant to M.S., Section 469.177, no demol ition, rehabilitation or renovat ion of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or wat er syst ems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no addi tional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capaci ty of the tax increment financing district. If the authority or the owner of the parcel subsequent ly commences demol ition, rehabilitation or renovat ion or other site preparat ion on that parcel including qualified improvement of a street adjacent to that parcel, in accordance wi th the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and t he county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add i t to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provi sions of this subdivision. The authority must submit to the county auditor evidence that the requi red activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvement s of a street are limited to (1) construction or openi ng of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The HRA or City or a property owner must improve parcels within the District by approximately April 2016 and report such actions to the County Auditor. Subsection 2-20.Use of Tax Increment The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1.To pay the principal of and interest on bonds issued to finance a pr oject; 2.to finance, or otherwise pay public redevelopment costs of the the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047; 3.To pay for project costs as identified in the budget set forth in the TIF Plan; 4.To finance, or otherwise pay for other purposes as pr ovided in M.S., Section 469.176, Subd. 4 ; 5.To pay principal and interest on any loans, advances or other payments made to or on behalf of the HRA or City or for the benefit of the Southeast Edina Redevelopment Project Area by a developer; 6.To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pur suant to the TIF Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-16 Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7.To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pur suant to M.S., Chapter 462C, M .S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shal l not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the HRA for the Tax Increment Fund of said District. The HRA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. If the request for certification of the District was made after June 30, 2009 and no l ater than June 30, 2012 and construction commenced in the District by July 1, 2012, tax increments from the District may also be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities. Remaining increment funds will be used for HRA or City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-21.Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2 , shall be used onl y to do one or more of the following: 1.Prepay any outstanding bonds; 2.Discharge the pledge of tax increment for any outstanding bonds; 3.Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4.Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The HRA or City must spend or return the excess i ncrements under paragraph (c) within nine months after the end of the year. In addition, the HRA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Southeast Edina Redevelopment Project Area or the District. Subsection 2-22.Requirements for Agreements with the Developer The HRA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. T o facilitate this effort, the following documents may be requested for review and approval: site plan, const ruction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the HRA or City to demonstrate the conformance of the development with City plans and ordinances. The HRA or City may also use t he Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5 , no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the HRA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-17 acreage, the HRA or City concluded an agreement for the development of the property acquired and which provides recourse for the HRA or City should the development not be completed. Subsection 2-23.Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8 , the HRA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor , to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24.Administration of the District Administration of the District will be handl ed by the Execut ive Director. Subsection 2-25.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the HRA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Sub d. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-26.Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expect ed to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expect ed to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been pl aced upon wr itten representation made by the developer to such ef fects and upon HRA and Ci ty staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been per formed as descr ibed above. Such anal ysis is included with the cashf low in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-27.Other Limitations on the Use of Tax Increment 1.General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shal l be used to finance, or otherwise pay public redevelopment costs of the Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-18 the Southeast Edina Redevelopment Project Area pursuant to M.S., Sections 469.001 t o 469.047. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2.Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance act ivities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, t hrough a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3.Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3 , has been sat isfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used onl y to pay previously committed expenditures or credit enhanced bonds as m ore fully set forth in M.S., Section 469.1763, Subd. 5 . (AS MODIFIED APRIL 5, 2016) Pursuant to M.S., Statute 469.1763, Subd. 2, the HRA and City may elect to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the District for qualifying housing purposes. Therefore, the pooling limitations with respect to this District are increased to not more than 30 percent of tax increments from the District. (AS MODIFIED NOVEMBER 20, 2018) Pooling Limitations. Pursuant to Minnesota Session Laws 2017, Chapt er 1, HF No. 1, Article 6, Sec. 11 and Sec. 16, at least 45 percent of tax increments from the District must be expended on act ivities in the District or to pay bonds, to the extent that the proceeds of the bonds wer e used to finance act ivities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 55 percent of said tax increments may be expended f or qualified housing projects as def ined in Minnesota Session Laws 2014, Chapt er 308, HF No. 3167, Art icle 6, Sec. 8 and Minnesota Session Laws 2017, Chapter 1, HF No. 1, Art icle 6, Sec. 11, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. Subsection 2-28.Summary The Edina Housing and Redevelopment Authority is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and pr ovide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Edina Housing and Redevelopment Authority Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District 2-19 Appendix A Project Description The City and HRA will be facilitating improvements to the 1.2 million square foot Southdale Center mall which was originally constructed in the 1960's. The redeveloper plans to renovate the interior common area and make exterior improvements to the shopping center. The renovations will consist of new entrance structures, flooring, lighting, signage, restrooms, parking deck lighting, and exterior seating, columns and interior wall treatments. Improvements are planned to be subst antially completed by December 31, 2012. The City and HRA intend to finance a por tion of the total renovation costs. The HRA will be loaning $5 million to Southdale Center, $250,000 of which is forgiven if a transit station is constructed. Tax increments collected from the Southdale Center parcels will be used to write down principal of the loan and adj acent development will pay for interest on the loan and f or the transit station improvements. Appendix A-1 Appendix B Maps of the Southeast Edina Redevelopment Project Area and the District Appendix B-1 (AS MODIFIED APRIL 5, 2016) Appendix B-2 (AS ORIGINALLY ADOPTED) Appendix B-3 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel(s) listed below. (AS MODIFIED APRIL 5, 2016) Parcel number 29-028-24-24-0030 is being removed from the District to be included in the 66 West Tax Increment Financing District. Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 Southdale Mall Renovation and Mixed Use DevelopmentCity of EdinaSouthdale Mall Renovation and Adjacent DevelopmentSchool District 273ASSUMPTIONS AND RATESDistrictType: Economic DevelopmentMaximum/Frozen Local Tax Rate: 108.160% SD 273District Name/Number:Current Local Tax Rate: (Use lesser of Current or Max.) 108.160% Pay 2012 Prelim.County District #:State-wide Tax Rate (Comm./Ind. only used for total taxes) 52.0000% Pay 2012 Prelim.First Year Construction or Inflation on Value2012Market Value Tax Rate (Used for total taxes) 0.18532% Pay 2012 Prelim.Existing District - Specify No. Years RemainingInflation Rate - Every Year:0.00% PROPERTY TAX CLASSES AND CLASS RATES:Interest Rate:5.50%Exempt Class Rate (Exempt) 0.00%Present Value Date:1-Feb-12Commercial Industrial Preferred Class Rate (C/I Pref.)First Period Ending 1-Aug-12 First$150,000 1.50%Tax Year District was Certified:Pay 2012Over $150,000 2.00%Cashflow Assumes First Tax Increment For Development: 2014 Commercial Industrial Class Rate (C/I) 2.00%Years of Tax Increment 9 Rental Housing Class Rate (Rental) 1.25%Assumes Last Year of Tax Increment 2022Affordable Rental Housing Class Rate (Aff. Rental) 0.75%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Non-Homestead Residential (Non-H Res.) 1.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residental Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio 34.7413% Pay 2012 Prelim. First$500,000 1.00%Fiscal Disparities Metro-Wide Tax Rate 141.9450% Pay 2012 Prelim. Over $500,000 1.25%Agricultural Non-Homestead 1.00%Percentage Tax Year Property Current ClassAfterLand BuildingTotal Of Value Used Original Original Tax OriginalAfterConversionS/D PID AddressMarket Value Market Value Market Value for DistrictMarket Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.Area/Phase273 29-028-24-33-0001ADDRESS UNASSIGNED0 0 0 100% 0 Pay 2012 Exempt - Exempt - Mall273 29-028-24-33-0004 3500 69TH ST W 571800 0 571,800 100% 571,800 Pay 2012 C/I 11,436 C/I 11,436 Mall273 29-028-24-33-0014ADDRESS UNASSIGNED14,995,000 17,908,800 32,903,800 100% 32,903,800 Pay 2012 C/I 658,076 C/I 658,076 Mall27329‐028‐24‐33‐00213503 GALLERIA2,273,100 5,315,000 7,588,100 100% 7,588,100 Pay 2012 C/I 151,762 C/I 151,762 27329‐028‐24‐33‐00223460 GALLERIA14,624,600 42,085,400 56,710,000 100% 56,710,000 Pay 2012 C/I Pref. 1,133,450 C/I Pref. 1,133,450 27329‐028‐24‐33‐00233501 GALLERIA3,287,100 2,112,900 5,400,000 100% 5,400,000 Pay 2012 C/I 108,000 C/I 108,000 27329‐028‐24‐34‐00026825 YORK AVE S2,851,200 100,900 2,952,100 100% 2,952,100 Pay 2012 C/I Pref. 58,292 C/I Pref. 58,292 27329‐028‐24‐34‐00073100 70TH ST W1,382,700 943,300 2,326,000 100% 2,326,000 Pay 2012 C/I Pref. 45,770 C/I Pref. 45,770 27329‐028‐24‐34‐00106975 YORK AVE S1,586,200 1,059,400 2,645,600 100% 2,645,600 Pay 2012 C/I Pref. 52,162 C/I Pref. 52,162 273 29-028-24-34-0019ADDRESS UNASSIGNED2,852,400 0 2,852,400 100% 2,852,400 Pay 2012 C/I 57,048 Rental 35,655 Mall27329‐028‐24‐34‐00206775 YORK AVE S1,162,700 0 1,162,700 100% 1,162,700 Pay 2012 C/I 23,254 C/I 23,254 27329‐028‐24‐34‐00216803 YORK AVE S2,932,400 3,024,800 5,957,200 100% 5,957,200 Pay 2012 C/I 119,144 C/I 119,144 27329‐028‐24‐34‐00226805 YORK AVE S725,200 247,800 973,000 100% 973,000 Pay 2012 C/I 19,460 C/I 19,460 27329‐028‐24‐34‐00243210 GALLERIA2,532,200 2,117,800 4,650,000 100% 4,650,000 Pay 2012 C/I Pref. 92,250 C/I Pref. 92,250 27329‐028‐24‐34‐00256905 YORK AVE S2,084,400 0 2,084,400 100% 2,084,400 Pay 2012 C/I Pref. 40,938 C/I Pref. 40,938 27329‐028‐24‐34‐00263121 69TH ST W1,482,100 10,202,900 11,685,000 100% 11,685,000 Pay 2012 Rental 146,063 Rental 146,063 27329‐028‐24‐34‐00333209 Galleria617,400 617,400 100% 617,400 Pay 2012 Non-H Res. 7,718 Non-H Res. 7,718 27329‐028‐24‐34‐00343209 Galleria1,179,000 1,179,000 100% 1,179,000 Pay 2012 Non-H Res. 14,738 Non-H Res. 14,738 27329‐028‐24‐34‐00353209 Galleria620,000 620,000 100% 620,000 Pay 2012 Non-H Res. 7,750 Non-H Res. 7,750 27329‐028‐24‐34‐00363209 Galleria779,000 779,000 100% 779,000 Pay 2012 Non-H Res. 9,738 Non-H Res. 9,738 27329‐028‐24‐34‐00373209 Galleria591,000 591,000 100% 591,000 Pay 2012 Non-H Res. 7,388 Non-H Res. 7,388 27329‐028‐24‐34‐00383209 Galleria589,000 589,000 100% 589,000 Pay 2012 Non-H Res. 7,363 Non-H Res. 7,363 27329‐028‐24‐34‐00393209 Galleria417,000 417,000 100% 417,000 Pay 2012 Non-H Res. 5,213 Non-H Res. 5,213 27329‐028‐24‐34‐00403209 Galleria1,012,000 1,012,000 100% 1,012,000 Pay 2012 Non-H Res. 12,650 Non-H Res. 12,650 27329‐028‐24‐34‐00413209 Galleria671,100 671,100 100% 671,100 Pay 2012 Non-H Res. 8,389 Non-H Res. 8,389 27329‐028‐24‐34‐00423209 Galleria1,179,000 1,179,000 100% 1,179,000 Pay 2012 Non-H Res. 14,738 Non-H Res. 14,738 27329‐028‐24‐34‐00433209 Galleria626,000 626,000 100% 626,000 Pay 2012 Non-H Res. 7,825 Non-H Res. 7,825 27329‐028‐24‐34‐00443209 Galleria639,000 639,000 100% 639,000 Pay 2012 Hmstd. Res. 6,738 Hmstd. Res. 6,738 27329‐028‐24‐34‐00453209 Galleria567,000 567,000 100% 567,000 Pay 2012 Non-H Res. 7,088 Non-H Res. 7,088 27329‐028‐24‐34‐00463209 Galleria565,500 565,500 100% 565,500 Pay 2012 Hmstd. Res. 5,819 Hmstd. Res. 5,819 27329‐028‐24‐34‐00473209 Galleria396,100 396,100 100% 396,100 Pay 2012 Hmstd. Res. 3,961 Hmstd. Res. 3,961 27329‐028‐24‐34‐00483209 Galleria1,179,000 1,179,000 100% 1,179,000 Pay 2012 Non-H Res. 14,738 Non-H Res. 14,738 27329‐028‐24‐34‐00493209 Galleria1,005,400 0 1,005,400 100% 1,005,400 Pay 2012 Hmstd. Res. 11,318 Hmstd. Res. 11,318 27329‐028‐24‐34‐00503209 Galleria1,179,000 1,179,000 100% 1,179,000 Pay 2012 Hmstd. Res. 13,488 Hmstd. Res. 13,488 27329‐028‐24‐34‐00513209 Galleria680,100 680,100 100% 680,100 Pay 2012 Hmstd. Res. 7,251 Hmstd. Res. 7,251 27329‐028‐24‐34‐00523209 Galleria768,000 768,000 100% 768,000 Pay 2012 Non-H Res. 9,600 Non-H Res. 9,600 27329‐028‐24‐34‐00533209 Galleria591,000 591,000 100% 591,000 Pay 2012 Non-H Res. 7,388 Non-H Res. 7,388 27329‐028‐24‐34‐00543209 Galleria560,000 560,000 100% 560,000 Pay 2012 Non-H Res. 7,000 Non-H Res. 7,000 27329‐028‐24‐34‐00553209 Galleria389,400 389,400 100% 389,400 Pay 2012 Non-H Res. 4,868 Non-H Res. 4,868 27329‐028‐24‐34‐00563209 Galleria1,219,000 1,219,000 100% 1,219,000 Pay 2012 Non-H Res. 15,238 Non-H Res. 15,238 27329‐028‐24‐34‐00573209 Galleria916,200 916,200 100% 916,200 Pay 2012 Hmstd. Res. 10,203 Hmstd. Res. 10,203 27329‐028‐24‐34‐00583209 Galleria1,226,900 1,226,900 100% 1,226,900 Pay 2012 Hmstd. Res. 14,086 Hmstd. Res. 14,086 27329‐028‐24‐34‐00593209 Galleria668,000 668,000 100% 668,000 Pay 2012 Hmstd. Res. 7,100 Hmstd. Res. 7,100 27329‐028‐24‐34‐00603209 Galleria754,000 754,000 100% 754,000 Pay 2012 Hmstd. Res. 8,175 Hmstd. Res. 8,175 27329‐028‐24‐34‐00613209 Galleria591,000 591,000 100% 591,000 Pay 2012 Non-H Res. 7,388 Non-H Res. 7,388 27329‐028‐24‐34‐00623209 Galleria478,300 478,300 100% 478,300 Pay 2012 Non-H Res. 5,979 Non-H Res. 5,979 27329‐028‐24‐34‐00633209 Galleria323,000 323,000 100% 323,000 Pay 2012 Non-H Res. 4,038 Non-H Res. 4,038 27329‐028‐24‐34‐00643209 Galleria1,268,300 1,268,300 100% 1,268,300 Pay 2012 Hmstd. Res. 14,604 Hmstd. Res. 14,604 27329‐028‐24‐34‐00653209 Galleria1,047,000 1,047,000 100% 1,047,000 Pay 2012 Non-H Res. 13,088 Non-H Res. 13,088 27329‐028‐24‐34‐00663209 Galleria1,225,000 1,225,000 100% 1,225,000 Pay 2012 Non-H Res. 15,313 Non-H Res. 15,313 BASE VALUE INFORMATION (Original Tax Capacity) 27329‐028‐24‐34‐00673209 Galleria677,100 677,100 100% 677,100 Pay 2012 Hmstd. Res. 7,214 Hmstd. Res. 7,214 27329‐028‐24‐34‐00683209 Galleria746,000 746,000 100% 746,000 Pay 2012 Non-H Res. 9,325 Non-H Res. 9,325 27329‐028‐24‐34‐00693209 Galleria615,000 615,000 100% 615,000 Pay 2012 Non-H Res. 7,688 Non-H Res. 7,688 27329‐028‐24‐34‐00703209 Galleria534,500 534,500 100% 534,500 Pay 2012 Non-H Res. 6,681 Non-H Res. 6,681 27329‐028‐24‐34‐00713209 Galleria380,200 380,200 100% 380,200 Pay 2012 Non-H Res. 4,753 Non-H Res. 4,753 27329‐028‐24‐34‐00723209 Galleria1,392,100 1,392,100 100% 1,392,100 Pay 2012 Non-H Res. 17,401 Non-H Res. 17,401 27329‐028‐24‐34‐00733209 Galleria1,005,000 1,005,000 100% 1,005,000 Pay 2012 Non-H Res. 12,563 Non-H Res. 12,563 27329‐028‐24‐34‐00743209 Galleria1,179,000 1,179,000 100% 1,179,000 Pay 2012 Non-H Res. 14,738 Non-H Res. 14,738 27329‐028‐24‐34‐00753209 Galleria773,400 773,400 100% 773,400 Pay 2012 Non-H Res. 9,668 Non-H Res. 9,668 27329‐028‐24‐34‐00763209 Galleria776,000 776,000 100% 776,000 Pay 2012 Non-H Res. 9,700 Non-H Res. 9,700 27329‐028‐24‐34‐00773209 Galleria503,000 503,000 100% 503,000 Pay 2012 Non-H Res. 6,288 Non-H Res. 6,288 27329‐028‐24‐34‐00783209 Galleria565,000 565,000 100% 565,000 Pay 2012 Non-H Res. 7,063 Non-H Res. 7,063 27329‐028‐24‐34‐00793209 Galleria380,000 380,000 100% 380,000 Pay 2012 Non-H Res. 4,750 Non-H Res. 4,750 27329‐028‐24‐34‐00803209 Galleria1,270,800 1,270,800 100% 1,270,800 Pay 2012 Hmstd. Res. 14,635 Hmstd. Res. 14,635 27329‐028‐24‐34‐00813209 Galleria1,005,000 1,005,000 100% 1,005,000 Pay 2012 Non-H Res. 12,563 Non-H Res. 12,563 27329‐028‐24‐34‐00823209 Galleria1,307,700 1,307,700 100% 1,307,700 Pay 2012 Hmstd. Res. 15,096 Hmstd. Res. 15,096 27329‐028‐24‐34‐00833209 Galleria669,600 669,600 100% 669,600 Pay 2012 Non-H Res. 8,370 Non-H Res. 8,370 27329‐028‐24‐34‐00843209 Galleria791,500 791,500 100% 791,500 Pay 2012 Non-H Res. 9,894 Non-H Res. 9,894 27329‐028‐24‐34‐00853209 Galleria648,400 648,400 100% 648,400 Pay 2012 Hmstd. Res. 6,855 Hmstd. Res. 6,855 27329‐028‐24‐34‐00863209 Galleria543,500 543,500 100% 543,500 Pay 2012 Non-H Res. 6,794 Non-H Res. 6,794 27329‐028‐24‐34‐00873209 Galleria380,000 380,000 100% 380,000 Pay 2012 Non-H Res. 4,750 Non-H Res. 4,750 27329‐028‐24‐34‐00883209 Galleria1,303,900 1,303,900 100% 1,303,900 Pay 2012 Hmstd. Res. 15,049 Hmstd. Res. 15,049 27329‐028‐24‐34‐00893209 Galleria1,005,000 1,005,000 100% 1,005,000 Pay 2012 Non-H Res. 12,563 Non-H Res. 12,563 27329‐028‐24‐34‐00903209 Galleria1,260,000 1,260,000 100% 1,260,000 Pay 2012 Non-H Res. 15,750 Non-H Res. 15,750 27329‐028‐24‐34‐00913209 Galleria713,400 713,400 100% 713,400 Pay 2012 Hmstd. Res. 7,668 Hmstd. Res. 7,668 27329‐028‐24‐34‐00923209 Galleria977,300 977,300 100% 977,300 Pay 2012 Non-H Res. 12,216 Non-H Res. 12,216 27329‐028‐24‐34‐00933209 Galleria591,000 591,000 100% 591,000 Pay 2012 Non-H Res. 7,388 Non-H Res. 7,388 27329‐028‐24‐34‐00943209 Galleria522,900 522,900 100% 522,900 Pay 2012 Non-H Res. 6,536 Non-H Res. 6,536 27329‐028‐24‐34‐00953209 Galleria380,000 380,000 100% 380,000 Pay 2012 Non-H Res. 4,750 Non-H Res. 4,750 27329‐028‐24‐34‐00963209 Galleria1,337,000 1,337,000 100% 1,337,000 Pay 2012 Hmstd. Res. 15,463 Hmstd. Res. 15,463 27329‐028‐24‐34‐00973209 Galleria999,900 999,900 100% 999,900 Pay 2012 Non-H Res. 12,499 Non-H Res. 12,499 27329‐028‐24‐34‐00983209 Galleria1,989,300 1,989,300 100% 1,989,300 Pay 2012 Hmstd. Res. 23,616 Hmstd. Res. 23,616 27329‐028‐24‐34‐00993209 Galleria765,800 765,800 100% 765,800 Pay 2012 Non-H Res. 9,573 Non-H Res. 9,573 27329‐028‐24‐34‐01003209 Galleria1,192,800 1,192,800 100% 1,192,800 Pay 2012 Hmstd. Res. 13,660 Hmstd. Res. 13,660 27329‐028‐24‐34‐01013209 Galleria1,052,000 1,052,000 100% 1,052,000 Pay 2012 Non-H Res. 13,150 Non-H Res. 13,150 27329‐028‐24‐34‐01023209 Galleria1,325,400 1,325,400 100% 1,325,400 Pay 2012 Hmstd. Res. 15,318 Hmstd. Res. 15,318 27329‐028‐24‐34‐01033209 Galleria1,288,300 1,288,300 100% 1,288,300 Pay 2012 Non-H Res. 16,104 Non-H Res. 16,104 27329‐028‐24‐34‐01043209 Galleria1,900,000 1,900,000 100% 1,900,000 Pay 2012 Non-H Res. 23,750 Non-H Res. 23,750 27329‐028‐24‐34‐01053209 Galleria729,000 729,000 100% 729,000 Pay 2012 Non-H Res. 9,113 Non-H Res. 9,113 27329‐028‐24‐34‐01063209 Galleria931,000 931,000 100% 931,000 Pay 2012 Non-H Res. 11,638 Non-H Res. 11,638 27329‐028‐24‐34‐01073209 Galleria1,093,000 1,093,000 100% 1,093,000 Pay 2012 Non-H Res. 13,663 Non-H Res. 13,663 27329‐028‐24‐34‐01083209 Galleria1,660,100 1,660,100 100% 1,660,100 Pay 2012 Non-H Res. 20,751 Non-H Res. 20,751 27329‐028‐24‐34‐01093209 Galleria893,000 893,000 100% 893,000 Pay 2012 Non-H Res. 11,163 Non-H Res. 11,163 27329‐028‐24‐34‐01103209 Galleria2,322,400 2,322,400 100% 2,322,400 Pay 2012 Non-H Res. 29,030 Non-H Res. 29,030 27329‐028‐24‐34‐01113209 Galleria647,000 647,000 100% 647,000 Pay 2012 Non-H Res. 8,088 Non-H Res. 8,088 27329‐028‐24‐34‐01123209 Galleria1,100,600 1,100,600 100% 1,100,600 Pay 2012 Non-H Res. 13,758 Non-H Res. 13,758 27329‐028‐24‐34‐01133209 Galleria1,214,000 1,214,000 100% 1,214,000 Pay 2012 Non-H Res. 15,175 Non-H Res. 15,175 27329‐028‐24‐34‐01143209 Galleria1,203,200 1,203,200 100% 1,203,200 Pay 2012 Non-H Res. 15,040 Non-H Res. 15,040 273 30-028-24-41-0001 6600 France Avenue South 18,914,100 15,428,500 34,342,600 100% 34,342,600 Pay 2012 C/I Pref. 686,102 C/I Pref. 686,102 273 30-028-24-44-0001 6996 France Avenue South 360,000 40,000 400,000 100% 400,000 Pay 2012 C/I Pref. 7,250 C/I Pref. 7,250 27330‐028‐24‐44‐00033950 70TH ST W1,021,100 622,000 1,643,100 100% 1,643,100 Pay 2012 C/I Pref. 32,112 C/I Pref. 32,112 27330‐028‐24‐44‐00044040 70TH ST W1,081,000 1,376,900 2,457,900 100% 2,457,900 Pay 2012 C/I Pref. 48,408 C/I Pref. 48,408 27330‐028‐24‐44‐00056950 FRANCE AVE S789,700 1,208,300 1,998,000 100% 1,998,000 Pay 2012 C/I Pref. 39,210 C/I Pref. 39,210 273 30-028-24-44-0006 3910 70th Street West 139,900 213,100 353,000 100% 353,000 Pay 2012 C/I Pref. 6,310 C/I Pref. 6,310 27330‐028‐24‐44‐00576900 FRANCE AVE S498,100 239,600 737,700 100% 737,700 Pay 2012 C/I Pref. 14,004 C/I Pref. 14,004 27330‐028‐24‐44‐00583905 69TH ST W847,200 392,600 1,239,800 100% 1,239,800 Pay 2012 C/I Pref. 24,046 C/I Pref. 24,046 27330‐028‐24‐44‐00593939 69TH ST W912,500 912,500 100% 912,500 Pay 2012 C/I Pref. 17,500 C/I Pref. 17,500 0 100% 0 Pay 2012 - - 152,963,500 104,640,000 257,603,500257,603,500 4,479,266 4,457,873Note:1. Base values are based upon review of County website on 3/7/12 of values assessed 1/2/11 for taxes payable 2012.2. Parcels are located within School district 273 and Watershed District 1.BASE VALUE INFORMATION (Original Tax Capacity) Southdale Mall Renovation and Mixed Use DevelopmentCity of EdinaSouthdale Mall Renovation and Adjacent DevelopmentSchool District 273Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New UsePer Sq. Ft./UnitPer Sq. Ft./Unit Sq. Ft./UnitsValue Class Tax Capacity Capacity/Unit2012 2013 2014 2015 PayableMall Retail 35,000,000 35,000,000 1 35,000,000 C/I 700,000 97% 97% 97% 100% 2017ApartmentsApartments 34,900,000 34,900,000 1 34,900,000 Rental 436,250 70% 70% 75% 100% 2017Office Office 36,000,000 36,000,000 1 36,000,000 C/I Pref. 719,250 96% 100% 100% 100% 2015Retail Retail 102,500,000 102,500,000 1 102,500,000 C/I Pref. 2,049,250 96% 96% 100% 100% 2016Condos/Apts. Condominiums 890,000 890,000 82 72,980,000 Hmstd. Res. 809,750 100% 100% 100% 100% 2014TOTAL281,380,000 4,714,500 Subtotal Residential #VALUE! 107,880,000 1,246,000 Subtotal Commercial/Ind.3 173,500,000 3,468,500 Note:1. Renovated mall market value based upon tax estimates from mall owner.2. Other development values based on proposals received by the City of Edina and estimates from City AssessorTotal Fiscal Local Local Fiscal State-wide MarketTax DisparitiesTax Property DisparitiesPropertyValue TotalNew UseCapacityTax Capacity CapacityTaxes Taxes Taxes Taxes TaxesRetail 700,000 243,189 456,811 494,087 345,195 364,000 64,862 1,268,143Apartments436,250 0 436,250 471,848 0 0 64,677 536,525Office 719,250 249,877 469,373 507,674 354,688 374,010 66,715 1,303,087Retail 2,049,250 711,936 1,337,314 1,446,439 1,010,558 1,065,610 189,953 3,712,559Condominiums809,750 0 809,750 875,826 0 0 135,247 1,011,072TOTAL 4,714,500 1,205,002 3,509,498 3,795,873 1,710,440 1,803,620 521,453 7,831,387Note: 1. Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.2. If tax increment is received in 2013 then the district will be one year shorter.PROJECT INFORMATION (Project Tax Capacity)TAX CALCULATIONS 6/29/2012Base Value Assumptions - Page 6City of EdinaSouthdale Mall Renovation and Adjacent DevelopmentSchool District 273Southdale Mall Renovation and Adjacent DevelopmentProject Original Fiscal Captured LocalAnnual Semi-Annual StateAdmin. Semi-Annual Semi-Annual PERIOD% ofTax Tax Disparities Tax Tax Gross Tax Gross TaxAuditorat Net Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36% 10% IncrementValueYrs.YearDate- - - - 08/01/12- - - - 02/01/13- - - - 08/01/13- - - - 02/01/14100% 4,458,033 (4,457,873) - 160 108.160% 173 86 (0) (9) 77 68 0.5 2014 08/01/14100% 4,458,033 (4,457,873) - 160 108.160% 173 86 (0) (9) 77 133 1 2014 02/01/15100% 4,480,655 (4,457,873) - 22,782 108.160% 24,641 12,320 (44) (1,228) 11,048 9,271 1.5 2015 08/01/15100% 4,480,655 (4,457,873) - 22,782 108.160% 24,641 12,320 (44) (1,228) 11,048 18,164 2 2015 02/01/16100% 4,584,438 (4,457,873) (20,346) 106,218 108.160% 114,886 57,443 (207) (5,724) 51,512 58,517 2.5 2016 08/01/16100% 4,584,438 (4,457,873) (20,346) 106,218 108.160% 114,886 57,443 (207) (5,724) 51,512 97,790 3 2016 02/01/17100% 4,714,500 (4,457,873) (27,642) 228,985 108.160% 247,670 123,835 (446) (12,339) 111,050 180,188 3.5 2017 08/01/17100% 4,714,500 (4,457,873) (27,642) 228,985 108.160% 247,670 123,835 (446) (12,339) 111,050 260,382 4 2017 02/01/18100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 325,494 4.5 2018 08/01/18100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 388,863 5 2018 02/01/19100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 450,536 5.5 2019 08/01/19100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 510,559 6 2019 02/01/20100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 568,975 6.5 2020 08/01/20100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 625,828 7 2020 02/01/21100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 681,159 7.5 2021 08/01/21100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 735,009 8 2021 02/01/22100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 787,418 8.5 2022 08/01/22100% 4,714,500 (4,457,873) (65,592) 191,034 108.160% 206,623 103,311 (372) (10,294) 92,645 838,424 9 2022 02/01/23 Total1,420,483 (5,114) (141,537) 1,273,832 Present Value From 02/01/2012 Present Value Rate 5.50% 934,948 (3,366) (93,158) 838,424 Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\EDINA\Housing Economic Redevelopment\TIF\TIF Districts\Southdale 2\TIF Runs\TIF Run Option B SD 273 jc Southdale Mall Renovation and Mixed Use DevelopmentCity of EdinaSouthdale Mall Renovation and Adjacent DevelopmentSchool District 280ASSUMPTIONS AND RATESDistrictType: Economic DevelopmentMaximum/Frozen Local Tax Rate: 114.351% S/D 280District Name/Number:Current Local Tax Rate: (Use lesser of Current or Max.) 114.351% Pay 2012 Prelim.County District #:State-wide Tax Rate (Comm./Ind. only used for total taxes) 52.0000% Pay 2012 Prelim.First Year Construction or Inflation on Value2012Market Value Tax Rate (Used for total taxes) 0.15860% Pay 2012 Prelim.Existing District - Specify No. Years RemainingInflation Rate - Every Year:0.00% PROPERTY TAX CLASSES AND CLASS RATES:Interest Rate:5.50%Exempt Class Rate (Exempt) 0.00%Present Value Date:1-Feb-12Commercial Industrial Preferred Class Rate (C/I Pref.)First Period Ending 1-Aug-12 First$150,000 1.50%Tax Year District was Certified:Pay 2012Over $150,000 2.00%Cashflow Assumes First Tax Increment For Development: 2014 Commercial Industrial Class Rate (C/I) 2.00%Years of Tax Increment 9 Rental Housing Class Rate (Rental) 1.25%Assumes Last Year of Tax Increment 2022Affordable Rental Housing Class Rate (Aff. Rental) 0.75%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Non-Homestead Residential (Non-H Res.) 1.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residental Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio 34.7413% Pay 2012 Prelim. First$500,000 1.00%Fiscal Disparities Metro-Wide Tax Rate 141.9450% Pay 2012 Prelim. Over $500,000 1.25%Agricultural Non-Homestead 1.00%Percentage Tax Year Property Current ClassAfterLand BuildingTotal Of Value Used Original Original Tax OriginalAfterConversionS/D PID AddressMarket Value Market Value Market Value for DistrictMarket Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.28029‐028‐24‐23‐0001ADDRESS UNASSIGNED1,384,800 1,316,200 2,701,000 100% 2,701,000 Pay 2012 C/I Pref. 53,270 C/I Pref. 53,270 28029‐028‐24‐23‐00076533 Drew Avenue South531,900 502,000 1,033,900 100% 1,033,900 Pay 2012 C/I Pref. 19,928 C/I Pref. 19,928 28029‐028‐24‐23‐00086525 Drew Avenue S445,000 120,700 565,700 100% 565,700 Pay 2012 C/I Pref. 10,564 C/I Pref. 10,564 28029‐028‐24‐23‐00096517 DREW AVE S529,500 1,235,500 1,765,000 100% 1,765,000 Pay 2012 C/I Pref. 34,550 C/I Pref. 34,550 28029‐028‐24‐23‐00103625 65TH ST W525,300 2,040,700 2,566,000 100% 2,566,000 Pay 2012 C/I Pref. 50,570 C/I Pref. 50,570 28029‐028‐24‐23‐0011ADDRESS UNASSIGNED285,800 0 285,800 100% 285,800 Pay 2012 C/I 5,716 C/I 5,716 28029‐028‐24‐23‐00123400 66TH ST W2,990,400 2,363,600 5,354,000 100% 5,354,000 Pay 2012 C/I Pref. 106,330 C/I Pref. 106,330 28029‐028‐24‐23‐0167ADDRESS UNASSIGNED0 0 0 100% 0 Pay 2012 Exempt - Exempt - 28029‐028‐24‐23‐01726545 FRANCE5,118,000 24,202,500 29,320,500 100% 29,320,500 Pay 2012 C/I Pref. 585,660 C/I Pref. 585,660 28029‐028‐24‐23‐01736525 FRANCE AVE S1,107,600 11,092,400 12,200,000 100% 12,200,000 Pay 2012 C/I 244,000 C/I 244,000 280 29-028-24-24-0001 3316 66th Street West 1,494,600 2,205,400 3,700,000 100% 3,700,000 Pay 2012 C/I Pref. 73,250 Rental 46,250 28029‐028‐24‐24‐0002ADDRESS UNASSIGNED403,100 0 403,100 100% 403,100 Pay 2012 C/I 8,062 C/I 8,062 280 29-028-24-24-0004 Thrivent Financial - No Address 535,600 0 535,600 100% 535,600 Pay 2012 C/I 10,712 Rental 6,695 280 29-028-24-24-0005 3250 66th Street West 2,091,800 755,900 2,847,700 100% 2,847,700 Pay 2012 C/I Pref. 56,204 Rental 35,596 280 29-028-24-24-0007 6550 York Avenue 2,274,300 2,611,700 4,886,000 100% 4,886,000 Pay 2012 C/I Pref. 96,970 Rental 61,075 280 29-028-24-24-0025 6515 Barrie Road 675,000 979,300 1,654,300 100% 1,654,300 Pay 2012 C/I Pref. 32,336 Rental 20,679 280 29-028-24-24-0026 6525 Barrie Road 480,000 806,000 1,286,000 100% 1,286,000 Pay 2012 C/I Pref. 24,970 Rental 16,075 280 29-028-24-24-0027 6519 Barrie Road 827,400 289,500 1,116,900 100% 1,116,900 Pay 2012 C/I Pref. 21,588 Rental 13,961 280 29-028-24-24-0030 3330 66th Street West 917,900 429,500 1,347,400 100% 1,347,400 Pay 2012 C/I Pref. 26,198 Rental 16,843 28029‐028‐24‐24‐0031ADDRESS UNASSIGNED36,900 0 36,900 100% 36,900 Pay 2012 C/I 738 C/I 738 28029‐028‐24‐24‐00326500 BARRIE RD478,400 721,600 1,200,000 100% 1,200,000 Pay 2012 C/I Pref. 23,250 C/I Pref. 23,250 28029‐028‐24‐24‐01206444 Xerxes Avenue South 271,800 328,200 600,000 100% 600,000 Pay 2012 C/I Pref. 11,250 Rental 7,500 280 29-028-24-24-0121 6500 Xerxes Avenue 244,100 206,400 450,500 100% 450,500 Pay 2012 C/I Pref. 8,260 Rental 5,631 28029‐028‐24‐24‐02236525 YORK AVE S1,671,000 1,645,400 3,316,400 100% 3,316,400 Pay 2012 C/I 66,328 C/I 66,328 28029‐028‐24‐31‐00023101 66TH ST W1,241,200 1,000 1,242,200 100% 1,242,200 Pay 2012 C/I Pref. 24,094 C/I Pref. 24,094 280 29-028-24-31-0003 6725 York Avenue South 2,674,000 1,000 2,675,000 100% 2,675,000 Pay 2012 C/I Pref. 52,750 C/I Pref. 52,750 280 29-028-24-31-0005 3425 66TH ST W 369,500 663,700 1,033,200 100% 1,033,200 Pay 2012 C/I 20,664 C/I 20,664 28029‐028‐24‐31‐00063230 SOUTHDALE CIR714,700 220,600 935,300 100% 935,300 Pay 2012 C/I Pref. 17,956 C/I Pref. 17,956 28029‐028‐24‐31‐00073220 SOUTHDALE CIR1,124,800 125,400 1,250,200 100% 1,250,200 Pay 2012 C/I Pref. 24,254 C/I Pref. 24,254 28029‐028‐24‐31‐00083210 SOUTHDALE CIR467,500 58,000 525,500 100% 525,500 Pay 2012 C/I Pref. 9,760 C/I Pref. 9,760 28029‐028‐24‐31‐00093200 SOUTHDALE CIR672,500 7,700 680,200 100% 680,200 Pay 2012 C/I Pref. 12,854 C/I Pref. 12,854 28029‐028‐24‐31‐00103240 SOUTHDALE CIR563,100 1,000 564,100 100% 564,100 Pay 2012 C/I Pref. 10,532 C/I Pref. 10,532 28029‐028‐24‐31‐00116612 XERXES AVE S131,400 56,900 188,300 100% 188,300 Pay 2012 Hmstd. Res. 1,883 Hmstd. Res. 1,883 28029‐028‐24‐31‐00126616 XERXES AVE S131,400 108,100 239,500 100% 239,500 Pay 2012 Hmstd. Res. 2,395 Hmstd. Res. 2,395 28029‐028‐24‐31‐00136620 XERXES AVE S131,400 72,400 203,800 100% 203,800 Pay 2012 Hmstd. Res. 2,038 Hmstd. Res. 2,038 28029‐028‐24‐31‐00146624 XERXES AVE S131,400 68,200 199,600 100% 199,600 Pay 2012 Hmstd. Res. 1,996 Hmstd. Res. 1,996 28029‐028‐24‐31‐00156628 XERXES AVE S145,300 72,700 218,000 100% 218,000 Pay 2012 Non-H Res. 2,725 Non-H Res. 2,725 28029‐028‐24‐31‐00166700 XERXES AVE S145,300 79,600 224,900 100% 224,900 Pay 2012 Hmstd. Res. 2,249 Hmstd. Res. 2,249 28029‐028‐24‐31‐00176704 XERXES AVE S131,400 46,800 178,200 100% 178,200 Pay 2012 Hmstd. Res. 1,782 Hmstd. Res. 1,782 28029‐028‐24‐31‐00186708 XERXES AVE S131,400 74,300 205,700 100% 205,700 Pay 2012 Hmstd. Res. 2,057 Hmstd. Res. 2,057 28029‐028‐24‐31‐00196712 XERXES AVE S131,400 82,900 214,300 100% 214,300 Pay 2012 Hmstd. Res. 2,143 Hmstd. Res. 2,143 280 29-028-24-31-0024 300 SOUTHDALE CENTER 4,272,600 1,000 4,273,600 100% 4,273,600 Pay 2012 C/I Pref. 84,722 C/I Pref. 84,722 280 29-028-24-31-0025 6636 YORK AVE S 967,800 1,000 968,800 100% 968,800 Pay 2012 C/I 19,376 C/I 19,376 28029‐028‐24‐31‐00266755 YORK AVE S0 0 0 100% 0 Pay 2012 Exempt - Exempt - 28029‐028‐24‐31‐00276775 YORK AVE S3,464,000 2,487,600 5,951,600 100% 5,951,600 Pay 2012 C/I Pref. 118,282 C/I Pref. 118,282 280 29-028-24-32-0001 3501 66TH ST W 616,600 0 616,600 100% 616,600 Pay 2012 C/I 12,332 C/I 12,332 280 29-028-24-32-0003 200 SOUTHDALE CENTER 1479500 2958500 4,438,000 100% 4,438,000 Pay 2012 C/I Pref. 88,010 C/I Pref. 88,010 280 29-028-24-32-0008 100 SOUTHDALE CENTER 1,883,700 7,193,300 9,077,000 100% 9,077,000 Pay 2012 C/I Pref. 180,790 C/I Pref. 180,790 280 29-028-24-32-0009 10 SOUTHDALE CENTER 27,696,800 45,616,200 73,313,000 100% 73,313,000 Pay 2012 C/I Pref. 1,465,510 C/I Pref. 1,465,510 280 30-028-24-14-0007 4005 65th Street 926,400 558,100 1,484,500 100% 1,484,500 Pay 2012 C/I Pref. 28,940 C/I Pref. 28,940 BASE VALUE INFORMATION (Original Tax Capacity) 280 30-028-24-14-0008 6500 France Avenue South 1,129,600 1,458,600 2,588,200 100% 2,588,200 Pay 2012 C/I Pref. 51,014 C/I Pref. 51,014 28030‐028‐24‐14‐00096566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00106566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00116566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00126566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00136566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00146566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00156566 France151,800 151,800 100% 151,800 Pay 2012 Hmstd. Res. 1,518 Hmstd. Res. 1,518 28030‐028‐24‐14‐00166566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00176566 France218,500 218,500 100% 218,500 Pay 2012 Hmstd. Res. 2,185 Hmstd. Res. 2,185 28030‐028‐24‐14‐00186566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐00196566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00206566 France183,800 183,800 100% 183,800 Pay 2012 Non-H Res. 2,298 Non-H Res. 2,298 28030‐028‐24‐14‐00216566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00226566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 28030‐028‐24‐14‐00236566 France218,500 218,500 100% 218,500 Pay 2012 Hmstd. Res. 2,185 Hmstd. Res. 2,185 28030‐028‐24‐14‐00246566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00256566 France151,800 151,800 100% 151,800 Pay 2012 Hmstd. Res. 1,518 Hmstd. Res. 1,518 28030‐028‐24‐14‐00266566 France116,200 116,200 100% 116,200 Pay 2012 Non-H Res. 1,453 Non-H Res. 1,453 28030‐028‐24‐14‐00276566 France151,800 151,800 100% 151,800 Pay 2012 Hmstd. Res. 1,518 Hmstd. Res. 1,518 28030‐028‐24‐14‐00286566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00296566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00306566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐00316566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00326566 France178,900 178,900 100% 178,900 Pay 2012 Non-H Res. 2,236 Non-H Res. 2,236 28030‐028‐24‐14‐00336566 France170,400 170,400 100% 170,400 Pay 2012 Non-H Res. 2,130 Non-H Res. 2,130 28030‐028‐24‐14‐00346566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 28030‐028‐24‐14‐00356566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00366566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00376566 France156,700 156,700 100% 156,700 Pay 2012 Non-H Res. 1,959 Non-H Res. 1,959 28030‐028‐24‐14‐00386566 France116,200 116,200 100% 116,200 Pay 2012 Non-H Res. 1,453 Non-H Res. 1,453 28030‐028‐24‐14‐00416566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00426566 France224,300 224,300 100% 224,300 Pay 2012 Non-H Res. 2,804 Non-H Res. 2,804 28030‐028‐24‐14‐00436566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00446566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 28030‐028‐24‐14‐00456566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00466566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00476566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00486566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00696566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00706566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 28030‐028‐24‐14‐00716566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00726566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00736566 France156,700 156,700 100% 156,700 Pay 2012 Hmstd. Res. 1,567 Hmstd. Res. 1,567 28030‐028‐24‐14‐00746566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00776566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐00786566 France235,000 235,000 100% 235,000 Pay 2012 Hmstd. Res. 2,350 Hmstd. Res. 2,350 28030‐028‐24‐14‐00796566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00806566 France187,400 187,400 100% 187,400 Pay 2012 Hmstd. Res. 1,874 Hmstd. Res. 1,874 28030‐028‐24‐14‐00816566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 28030‐028‐24‐14‐00826566 France187,400 187,400 100% 187,400 Pay 2012 Hmstd. Res. 1,874 Hmstd. Res. 1,874 28030‐028‐24‐14‐00836566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐00846566 France239,900 239,900 100% 239,900 Pay 2012 Hmstd. Res. 2,399 Hmstd. Res. 2,399 28030‐028‐24‐14‐00856566 France159,400 159,400 100% 159,400 Pay 2012 Hmstd. Res. 1,594 Hmstd. Res. 1,594 28030‐028‐24‐14‐00866566 France126,900 126,900 100% 126,900 Pay 2012 Hmstd. Res. 1,269 Hmstd. Res. 1,269 28030‐028‐24‐14‐00876566 France159,400 159,400 100% 159,400 Pay 2012 Hmstd. Res. 1,594 Hmstd. Res. 1,594 28030‐028‐24‐14‐00886566 France126,900 126,900 100% 126,900 Pay 2012 Non-H Res. 1,586 Non-H Res. 1,586 28030‐028‐24‐14‐00896566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00906566 France235,000 235,000 100% 235,000 Pay 2012 Hmstd. Res. 2,350 Hmstd. Res. 2,350 28030‐028‐24‐14‐00916566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00926566 France187,400 187,400 100% 187,400 Pay 2012 Hmstd. Res. 1,874 Hmstd. Res. 1,874 28030‐028‐24‐14‐00936566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00946566 France192,300 192,300 100% 192,300 Pay 2012 Non-H Res. 2,404 Non-H Res. 2,404 28030‐028‐24‐14‐00956566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐00966566 France235,000 235,000 100% 235,000 Pay 2012 Hmstd. Res. 2,350 Hmstd. Res. 2,350 28030‐028‐24‐14‐00976566 France164,300 164,300 100% 164,300 Pay 2012 Hmstd. Res. 1,643 Hmstd. Res. 1,643 28030‐028‐24‐14‐00986566 France122,000 122,000 100% 122,000 Pay 2012 Hmstd. Res. 1,220 Hmstd. Res. 1,220 28030‐028‐24‐14‐00996566 France159,400 159,400 100% 159,400 Pay 2012 Non-H Res. 1,993 Non-H Res. 1,993 28030‐028‐24‐14‐01006566 France122,000 122,000 100% 122,000 Pay 2012 Non-H Res. 1,525 Non-H Res. 1,525 28030‐028‐24‐14‐01016566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐01026566 France239,900 239,900 100% 239,900 Pay 2012 Non-H Res. 2,999 Non-H Res. 2,999 28030‐028‐24‐14‐01036566 France165,700 165,700 100% 165,700 Pay 2012 Non-H Res. 2,071 Non-H Res. 2,071 28030‐028‐24‐14‐01046566 France192,300 192,300 100% 192,300 Pay 2012 Hmstd. Res. 1,923 Hmstd. Res. 1,923 28030‐028‐24‐14‐01056566 France165,700 165,700 100% 165,700 Pay 2012 Hmstd. Res. 1,657 Hmstd. Res. 1,657 28030‐028‐24‐14‐01066566 France192,300 192,300 100% 192,300 Pay 2012 Hmstd. Res. 1,923 Hmstd. Res. 1,923 28030‐028‐24‐14‐01076566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐01086566 France244,800 244,800 100% 244,800 Pay 2012 Hmstd. Res. 2,448 Hmstd. Res. 2,448 28030‐028‐24‐14‐01096566 France170,600 170,600 100% 170,600 Pay 2012 Non-H Res. 2,133 Non-H Res. 2,133 28030‐028‐24‐14‐01106566 France129,400 129,400 100% 129,400 Pay 2012 Non-H Res. 1,618 Non-H Res. 1,618 28030‐028‐24‐14‐01116566 France159,400 159,400 100% 159,400 Pay 2012 Non-H Res. 1,993 Non-H Res. 1,993 28030‐028‐24‐14‐01126566 France122,000 122,000 100% 122,000 Pay 2012 Hmstd. Res. 1,220 Hmstd. Res. 1,220 28030‐028‐24‐14‐01136566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐01146566 France239,900 239,900 100% 239,900 Pay 2012 Hmstd. Res. 2,399 Hmstd. Res. 2,399 28030‐028‐24‐14‐01156566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐01166566 France187,400 187,400 100% 187,400 Pay 2012 Non-H Res. 2,343 Non-H Res. 2,343 28030‐028‐24‐14‐01176566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐01186566 France187,400 187,400 100% 187,400 Pay 2012 Non-H Res. 2,343 Non-H Res. 2,343 28030‐028‐24‐14‐01196566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 BASE VALUE INFORMATION (Original Tax Capacity) 28030‐028‐24‐14‐01206566 France235,000 235,000 100% 235,000 Pay 2012 Hmstd. Res. 2,350 Hmstd. Res. 2,350 28030‐028‐24‐14‐01236566 France159,400 159,400 100% 159,400 Pay 2012 Hmstd. Res. 1,594 Hmstd. Res. 1,594 28030‐028‐24‐14‐01256566 France234,100 234,100 100% 234,100 Pay 2012 Hmstd. Res. 2,341 Hmstd. Res. 2,341 28030‐028‐24‐14‐01276566 France188,200 188,200 100% 188,200 Pay 2012 Hmstd. Res. 1,882 Hmstd. Res. 1,882 28030‐028‐24‐14‐01286566 France192,300 192,300 100% 192,300 Pay 2012 Hmstd. Res. 1,923 Hmstd. Res. 1,923 28030‐028‐24‐14‐01296566 France188,200 188,200 100% 188,200 Pay 2012 Hmstd. Res. 1,882 Hmstd. Res. 1,882 28030‐028‐24‐14‐01306566 France187,400 187,400 100% 187,400 Pay 2012 Hmstd. Res. 1,874 Hmstd. Res. 1,874 28030‐028‐24‐14‐01316566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐01336566 France164,300 164,300 100% 164,300 Pay 2012 Hmstd. Res. 1,643 Hmstd. Res. 1,643 28030‐028‐24‐14‐01356566 France159,400 159,400 100% 159,400 Pay 2012 Non-H Res. 1,993 Non-H Res. 1,993 28030‐028‐24‐14‐01376566 France229,200 229,200 100% 229,200 Pay 2012 Non-H Res. 2,865 Non-H Res. 2,865 28030‐028‐24‐14‐01396566 France178,900 178,900 100% 178,900 Pay 2012 Non-H Res. 2,236 Non-H Res. 2,236 28030‐028‐24‐14‐01406566 France187,400 187,400 100% 187,400 Pay 2012 Hmstd. Res. 1,874 Hmstd. Res. 1,874 28030‐028‐24‐14‐01416566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 28030‐028‐24‐14‐01426566 France187,400 187,400 100% 187,400 Pay 2012 Non-H Res. 2,343 Non-H Res. 2,343 28030‐028‐24‐14‐01476566 France179,400 179,400 100% 179,400 Pay 2012 Hmstd. Res. 1,794 Hmstd. Res. 1,794 28030‐028‐24‐14‐01496566 France314,200 314,200 100% 314,200 Pay 2012 Non-H Res. 3,928 Non-H Res. 3,928 28030‐028‐24‐14‐01516566 France196,000 196,000 100% 196,000 Pay 2012 Hmstd. Res. 1,960 Hmstd. Res. 1,960 28030‐028‐24‐14‐01526566 France209,400 209,400 100% 209,400 Pay 2012 Non-H Res. 2,618 Non-H Res. 2,618 28030‐028‐24‐14‐01536566 France196,000 196,000 100% 196,000 Pay 2012 Non-H Res. 2,450 Non-H Res. 2,450 28030‐028‐24‐14‐01546566 France214,300 214,300 100% 214,300 Pay 2012 Hmstd. Res. 2,143 Hmstd. Res. 2,143 28030‐028‐24‐14‐01556566 France250,500 250,500 100% 250,500 Pay 2012 Hmstd. Res. 2,505 Hmstd. Res. 2,505 28030‐028‐24‐14‐01566566 France261,200 261,200 100% 261,200 Pay 2012 Hmstd. Res. 2,612 Hmstd. Res. 2,612 28030‐028‐24‐14‐01576566 France179,400 179,400 100% 179,400 Pay 2012 Non-H Res. 2,243 Non-H Res. 2,243 28030‐028‐24‐14‐01586566 France138,500 138,500 100% 138,500 Pay 2012 Hmstd. Res. 1,385 Hmstd. Res. 1,385 28030‐028‐24‐14‐01596566 France372,500 372,500 100% 372,500 Pay 2012 Non-H Res. 4,656 Non-H Res. 4,656 28030‐028‐24‐14‐01604015 65th Street West3,032,400 8,631,300 11,663,700 100% 11,663,700 Pay 2012 Rental 145,796 Rental 145,796 28030‐028‐24‐14‐01616566 France299,600 299,600 100% 299,600 Pay 2012 Hmstd. Res. 2,996 Hmstd. Res. 2,996 28030‐028‐24‐14‐01626566 France399,900 399,900 100% 399,900 Pay 2012 Hmstd. Res. 3,999 Hmstd. Res. 3,999 28030‐028‐24‐14‐01636566 France367,600 367,600 100% 367,600 Pay 2012 Non-H Res. 4,595 Non-H Res. 4,595 28030‐028‐24‐14‐01646566 France367,600 367,600 100% 367,600 Pay 2012 Hmstd. Res. 3,676 Hmstd. Res. 3,676 28030‐028‐24‐14‐01656566 France272,800 272,800 100% 272,800 Pay 2012 Non-H Res. 3,410 Non-H Res. 3,410 28030‐028‐24‐14‐01666566 France367,600 367,600 100% 367,600 Pay 2012 Non-H Res. 4,595 Non-H Res. 4,595 28030‐028‐24‐14‐01676566 France414,300 414,300 100% 414,300 Pay 2012 Hmstd. Res. 4,143 Hmstd. Res. 4,143 28030‐028‐24‐14‐01686566 France286,200 286,200 100% 286,200 Pay 2012 Non-H Res. 3,578 Non-H Res. 3,578 28030‐028‐24‐14‐00496566 France151,800 151,800 100% 151,800 Pay 2012 Hmstd. Res. 1,518 Hmstd. Res. 1,518 28030‐028‐24‐14‐00506566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00516566 France151,800 151,800 100% 151,800 Pay 2012 Hmstd. Res. 1,518 Hmstd. Res. 1,518 28030‐028‐24‐14‐00526566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00536566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00546566 France224,300 224,300 100% 224,300 Pay 2012 Hmstd. Res. 2,243 Hmstd. Res. 2,243 28030‐028‐24‐14‐00556566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00566566 France183,800 183,800 100% 183,800 Pay 2012 Non-H Res. 2,298 Non-H Res. 2,298 28030‐028‐24‐14‐00576566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00586566 France178,900 178,900 100% 178,900 Pay 2012 Hmstd. Res. 1,789 Hmstd. Res. 1,789 28030‐028‐24‐14‐00596566 France213,600 213,600 100% 213,600 Pay 2012 Hmstd. Res. 2,136 Hmstd. Res. 2,136 28030‐028‐24‐14‐00606566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00616566 France151,800 151,800 100% 151,800 Pay 2012 Non-H Res. 1,898 Non-H Res. 1,898 28030‐028‐24‐14‐00626566 France116,200 116,200 100% 116,200 Pay 2012 Non-H Res. 1,453 Non-H Res. 1,453 28030‐028‐24‐14‐00636566 France151,800 151,800 100% 151,800 Pay 2012 Non-H Res. 1,898 Non-H Res. 1,898 28030‐028‐24‐14‐00646566 France116,200 116,200 100% 116,200 Pay 2012 Hmstd. Res. 1,162 Hmstd. Res. 1,162 28030‐028‐24‐14‐00656566 France213,600 213,600 100% 213,600 Pay 2012 Non-H Res. 2,670 Non-H Res. 2,670 28030‐028‐24‐14‐00666566 France229,200 229,200 100% 229,200 Pay 2012 Hmstd. Res. 2,292 Hmstd. Res. 2,292 28030‐028‐24‐14‐00676566 France170,400 170,400 100% 170,400 Pay 2012 Hmstd. Res. 1,704 Hmstd. Res. 1,704 28030‐028‐24‐14‐00686566 France183,800 183,800 100% 183,800 Pay 2012 Hmstd. Res. 1,838 Hmstd. Res. 1,838 0 100% 0 Pay 2012 - - 107,558,300 124,498,400 232,056,700232,056,700 4,252,730 4,121,297Note:1. Base values are based upon review of County website on 3/7/12 of values assessed 1/2/11 for taxes payable 2012.2. Parcels are located within School district 280 and Watershed District 1 and 3. The tax rate used for this projection is for Watershed 3BASE VALUE INFORMATION (Original Tax Capacity) Southdale Mall Renovation and Mixed Use DevelopmentCity of EdinaSouthdale Mall Renovation and Adjacent DevelopmentEstimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New UsePer Sq. Ft./UnitPer Sq. Ft./Unit Sq. Ft./UnitsValue Class Tax Capacity Capacity/Unit2012 2013 2014 2015 PayableMall Retail 125,000,000 125,000,000 1 125,000,000 C/I Pref. 2,499,250 90% 92% 96% 100% 2017Office Office 67,000,000 67,000,000 1 67,000,000 C/I Pref. 1,339,250 90% 92% 95% 100% 201766th & YorkApartments 130,000 130,000 420 54,600,000 Rental 682,500 25% 25% 45% 100% 2017Retail Retail 53,000,000 53,000,000 1 53,000,000 C/I Pref. 1,059,250 93% 96% 98% 100% 2017Condos Condominiums 215,000 197,110 141 27,792,510 Hmstd. Res. 277,925 100% 100% 100% 100% 2014TOTAL327,392,510 5,858,175 Subtotal Residential82,392,510 960,425 Subtotal Commercial/Ind.245,000,000 4,897,750 Note:1. Renovated mall market value based upon tax estimates from mall owner.2. Other developmentvalues based on proposals received by the City of Edina that will increase existing values and estimates from City AssessorTotal Fiscal Local Local Fiscal State-wide MarketTax DisparitiesTax Property DisparitiesPropertyValue TotalNew UseCapacityTax Capacity CapacityTaxes Taxes Taxes Taxes TaxesRetail 2,499,250 868,272 1,630,978 1,865,040 1,232,469 1,299,610 198,250 4,595,368Office 1,339,250 465,273 873,977 999,402 660,432 696,410 106,262 2,462,505Apartments682,500 0 682,500 780,446 0 0 86,596 867,041Retail 1,059,250 367,997 691,253 790,454 522,354 550,810 84,058 1,947,676Condominiums277,925 0 277,925 317,810 0 0 44,079 361,889TOTAL 5,858,175 1,701,542 4,156,633 4,753,151 2,415,254 2,546,830 519,245 10,234,480Note: 1. Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.2. If tax increment is received in 2013 then the district will be one year shorter.TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity) 6/29/2012Base Value Assumptions - Page 1City of EdinaSouthdale Mall Renovation and Adjacent DevelopmentSchool District 280Southdale Mall Renovation and Adjacent DevelopmentProject Original Fiscal Captured LocalAnnual Semi-Annual StateAdmin. Semi-Annual Semi-Annual PERIOD% ofTax Tax Disparities Tax Tax Gross Tax Gross TaxAuditorat Net Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36% 10% IncrementValueYrs.YearDate- - - - 08/01/12- - - - 02/01/13- - - - 08/01/13- - - - 02/01/14100% 4,887,371 (4,121,297) (350,521) 415,553 114.351% 475,189 237,594 (855) (23,674) 213,065 186,039 0.5 2014 08/01/14100% 4,887,371 (4,121,297) (350,521) 415,553 114.351% 475,189 237,594 (855) (23,674) 213,065 367,098 1 2014 02/01/15100% 5,007,847 (4,121,297) (392,052) 494,497 114.351% 565,463 282,731 (1,018) (28,171) 253,542 576,788 1.5 2015 08/01/15100% 5,007,847 (4,121,297) (392,052) 494,497 114.351% 565,463 282,731 (1,018) (28,171) 253,542 780,866 2 2015 02/01/16100% 5,294,683 (4,121,297) (444,281) 729,105 114.351% 833,738 416,869 (1,501) (41,537) 373,832 1,073,712 2.5 2016 08/01/16100% 5,294,683 (4,121,297) (444,281) 729,105 114.351% 833,738 416,869 (1,501) (41,537) 373,832 1,358,721 3 2016 02/01/17100% 5,858,175 (4,121,297) (509,635) 1,227,243 114.351% 1,403,364 701,682 (2,526) (69,916) 629,240 1,825,613 3.5 2017 08/01/17100% 5,858,175 (4,121,297) (509,635) 1,227,243 114.351% 1,403,364 701,682 (2,526) (69,916) 629,240 2,280,009 4 2017 02/01/18100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 2,724,099 4.5 2018 08/01/18100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 3,156,303 5 2018 02/01/19100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 3,576,940 5.5 2019 08/01/19100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 3,986,319 6 2019 02/01/20100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 4,384,742 6.5 2020 08/01/20100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 4,772,501 7 2020 02/01/21100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 5,149,882 7.5 2021 08/01/21100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 5,517,163 8 2021 02/01/22100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 5,874,614 8.5 2022 08/01/22100% 5,858,175 (4,121,297) (504,487) 1,232,391 114.351% 1,409,252 704,626 (2,537) (70,209) 631,880 6,222,498 9 2022 02/01/23 Total10,324,014 (37,166) (1,028,685) 9,258,163 Present Value From 02/01/2012 Present Value Rate 5.50% 6,938,866 (24,980) (691,389) 6,222,498 Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\EDINA\Housing Economic Redevelopment\TIF\TIF Districts\Southdale 2\TIF Runs\TIF Run Option B SD 280 jc Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each cal endar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix E-1 Appendix F Findings Including But/For Qualifications But-For Analysis Current Market Value 489,660,200 New Market Value - Estimate 608,772,510 Difference 119,112,310 Present Value of Tax Increment 7,873,815 Difference 111,238,495 Value Likely to Occur Without TIF is Less Than: 111,238,495 (AS MODIFIED APRIL 5, 2016) The Council hereby reaffirms the original findings for the District, namely that the when the District was established, it was established as an "economic development district" under M.S., Section 469.174, Subd. 12, as modified by M.S., Section 469.176, Subd. 4c(d). In addition, the City makes the following findings: (a)The TIF Plan Modification conforms to the general plan for development or redevelopment of the City as a whole. The reason for supporting this finding is that the TIF Plan Modification will generally complement and serve to implement policies adopted in the City's comprehensive plan. (b)The TIF Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Southeast Edina Redevelopment Project Area by private enterprise. The TIF Plan Modification will allow for the City to establish the 66 West Tax Increment Financing District, and the development activities are necessar y so that development and redevelopment by private enterprise can occur within Southeast Edina Redevelopment Project Area. (c)The City reaffirms the original findings of the Southdale 2 Tax Increment Financing District, namely that the development and redevelopment efforts, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeabl e future and therefor the use of tax increment financing is deemed necessar y. (AS MODIFIED NOVEMBER 20, 2018) The Council hereby reaffirms the original findings for the District, namely that the when the District was established, it was established as an "economic development district" under M.S., Section 469.174, Subd. 12, as modified by M.S., Section 469.176, Subd. 4c(d). Appendix F-1 In addition, the City makes the following findings: (a)The TIF Plan Modification conforms to the general plan for development or redevelopment of the City as a whole. The reason for supporting this finding is that the TIF Plan Modification will generally complement and serve to implement policies adopted in the City's comprehensive plan. (b)The TIF Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Southeast Edina Redevelopment Project Area by private enterprise. The TIF Plan Modification will allow for the City to establish the 66 West Tax Increment Financing District and support additional affordable housing activities as authorized under Minnesota Session Laws 2014, Chapter 308, HF No. 3167, Article 6, Sec. 8 and Minnesota Session Laws 2017, Chapter 1, HF No. 1, Article 6, Sec. 11, and the development activities are necessar y so that development and redevelopment by private enterprise can occur within Southeast Edina Redevelopment Project Area. (c)The City reaffirms the original findings of the Southdale 2 Tax Increment Financing District, namely that the development and redevelopment efforts, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeabl e future and therefor the use of tax increment financing is deemed necessar y. (AS MODIFIED DECEMBER 17, 2019) The Council hereby reaffirms the original findings for the District, namely that the when the District was established, it was established as an "economic development district" under M.S., Section 469.174, Subd. 12, as modified by M.S., Section 469.176, Subd. 4c(d). In addition, the City makes the following findings: (a)The TIF Plan Modification conforms to the general plan for development or redevelopment of the City as a whole. The reason for supporting this finding is that the TIF Plan Modification will generally complement and serve to implement policies adopted in the City's comprehensive plan. (b)The TIF Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevel opment of the Southeast Edina Redevelopment Project Area by private enterprise. The TIF Plan Modification will allow for the City to support additional affordable housing activities as authorized under Minnesota Session Laws 2014, Chapter 308, HF No. 3167, Article 6, Sec. 8 as amended by Minnesota Session Laws 2017, Chapter 1, HF No. 1, Article 6, Sec. 11 and Minnesota Session Laws 2019, First Special Session, Chapter 6, Article 7, Sec. 3, and the development activities are necessary so that development and redevelopment by private enterprise can occur w ithin Southeast Edina Redevelopment Project Area. (c)The City reaffirms the original findings of the Southdale 2 Tax Increment Financing District, namely that the development and redevelopment efforts, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeabl e future and therefor the use of tax increment financing is deemed necessary. Appendix F-2 Appendix G Prior Improvements The complete list of permits issued are on file with the City Planner Appendix G-1 Appendix H Special 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. Appendix H-1 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. Appendix H-2 Appendix I Housing Qualifications for the District In meeting the criteria of Minnesota Session Laws 2019, Fi rst Special Session, Chapter 6, HF No. 5, Article 7, at least 20% of the units will be occupied by person with incomes less than 60% of median income. Income Restrictions- Adjusted for Family Size (Housing District) - Hennepin County Hennepin County Median Family Income: $100,000 No. of Persons 60% of Median Income 1-person $42,000 2-person $48,000 3-person $54,000 4-person $60,000 Source: Department of Housing and Urban Development and Minnesota Housing Finance Agency ***PLEASE NOTE: THESE NUMBERS ARE ADJUSTED ANNUALLY. ALL INCOME FIGURES REPORTED ON THIS PAGE ARE FOR 2019. Appendix F-4 Date: August 26, 2021 Agenda Item #: VI I.D. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:5146 Eden Avenue - R edevelopment P lanning Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for discussion only. I N TR O D U C TI O N: On behalf of the Edina H R A, Frauenshuh Co. has prepared a draft solicitation to be used to identify potential operators of an activity-oriented hospitality business to be located on the northern portion of the vacant site located at 5146 E den Avenue. S taff and F rauenshuh will explain this draft and seeks input and direction before full efforts are employed to recruit potential operators for this site. AT TAC HME N T S: Description Staff - Frauenshuh pres entation operator solicitation DRAFT The CITY of EDINA 5146 Eden Avenue Redevelopment Planning –Outreach for Hospitality/Dining Prospects Housing and Redevelopment Authority August 26, 2021 The CITY of EDINA 1)Objectives for end user 2)Transaction models to consider 3)Schedule for decision making 4)Other expectations United Properties still intends to purchase southern portion to construct new age-restricted co-operative housing Frauenshuh seeks confirmation of HRA expectations as they prepare to seek prospects for northern portion 2 The CITY of EDINA Visualization Concepts 3 The CITY of EDINA Visualization Concepts 4 The CITY of EDINA Conceptual Site Plan 5 SOUTH PORTION OF THE SITE (Land sale for approximately 90 senior cooperative units, with 10% affordably priced) NORTH PORTION OF THE SITE (HRA Owned -to be land leased, BTS lease or separate land sale, TBD) The CITY of EDINA Dining/Hospitality Prelim. Concept 6 The CITY of EDINA 1)Restaurant / Dining / Hospitality User 2)All season format (week-day and week-end) 3)Indoor/outdoor dining 4)Indoor/outdoor activities such as lawn games 5)Others? Objectives to Review 7 The CITY of EDINA 1)Land Lease –HRA to retain land; tenant to construct building for long-term lease. 2)Build to Suit –HRA to retain land and construct new building; tenant to lease building 3)Sale –HRA to sell land with pre-determined price and conditions; tenant to purchase and construct new building 4)Any others? Transaction Models to Consider 8 The CITY of EDINA 1)Frauenshuh to serve as broker 2)Strategic outreach through commercial real estate channels 3)Contact groups that operate at local, regional and possibly national scale 4)Focus on experienced operators capable of delivering a successful local destination Outreach Strategy 9 The CITY of EDINA •Late August –outreach to prospects •Sept 15th –Deadline to submit interest •Late September –preliminary review of prospects •Mid-October –HRA to interview prospects •Oct. 28th –HRA to consider and select the preferred group •Dec. 2021 –execute Agreements with preferred group Anticipated Schedule 10 The CITY of EDINA Your input is appreciated Discussion 11 1 REQUEST FOR EXPRESSIONS OF INTEREST RESTAURANT/HOSPITALITY - END-USE/OWNER/OPERATOR 5146 Eden Avenue Redevelopment Edina, MN August ___, 2021 On behalf of the Edina HRA, this letter is an invitation and request for your expression of interest for the selection of an end-use/owner/operator for a new restaurant/dining/hospitality development at the above referenced location in Edina, MN. BACKGROUND The Edina Housing and Redevelopment Authority (“HRA”), working in conjunction with Frauenshuh, Inc. (“Frauenshuh”) and United Properties (“United Properties”), is planning the development of the approximately 3-acre property (“Site”) at the intersection of Eden Avenue and Arcadia Avenue in the city’s Grandview District. Physical Plan Concept The plan under consideration is illustrated as Exhibit A, and include the following basic site components: 1. South Portion of the Site - Approximately 90 unit + Senior Cooperative housing development on the South Portion of the site (“Senior Cooperative Project”) developed by United Properties. Frauenshuh/United Properties will continue working with the HRA to plan, design and develop this site component. 2. North Portion of the Site (Seeking Expressions of Interest for a to be selected end- use/owner/operator) - A to-be-established restaurant/dining/hospitality concept that includes indoor/outdoor activities along with an outdoor green space connecting with the future pedestrian bridge on the North Portion of the site. Exhibit B attached illustrates some of the conceptual potential use elements. The HRA has defined several objectives for the North Portion of the Site, which includes but are not limited to: A. Restaurant to be an all-seasons format with regular weekday and weekend business hours. Restaurant size, seating count and format (indoor/outdoor), menu, hospitality design, dine- in/carry-out/delivery options to be defined by the individual operator concepts. B. The restaurant’s business and operational model will include indoor and outdoor dining experience and activities such as lawn games and other hospitality elements (e.g. indoor/outdoor event space) to be incorporated as core components of the concept. C. The activities and the hospitality theme would aim to draw customers and activity to the area all times of the year, weekdays, evenings and weekends. D. The green space component connected to the future pedestrian bridge could function interactively with the restaurant/dining/hospitality use/user. 2 E. The green space will be designed to be a vibrant outdoor public space that can accommodate a wide variety of year-round programming such as: neighborhood festivals, art festivals, farmer’s markets, special events, and community gatherings. A variety of landscape and hardscape features that support these activities are anticipated. Land Control and Ownership Model The Edina HRA owns the Site and would seek to understand the potential ownership structure of the land and improvements that would be delivered to facilitate the development of the concept by a preferred end- use/owner/operator. The potential ownership structures would include: 1. Edina HRA to retain ownership of the land and lease the land to the end-use/owner/operator, who would separately design, finance, construct and own the building and improvements to the Site, under a long-term Land Lease arrangement. 2. Edina HRA to retain ownership of the land and design, finance, construct and own the building and improvements to the Site (build-to-suit), under a long-term Land and Building Lease arrangement with the end-use/owner/operator. 3. Edina HRA to sell the land to the end-use/owner/operator at a pre-determined price and with pre-determined conditions to the sale and purchase. The HRA will seek to understand the options under which the end-use/owner/operator would have an interest in proceeding with the concept with the HRA, with the HRA’s objective of securing the specific use and operation described herein. Under each of the potential models referenced above, it is the HRA’s object to reach a fair-market agreement for the level of investment, risk and conditions required of the parties to reach an agreement and achieve the development objectives described in this package. Timing Considerations The Edina HRA is interested in completing the identification and selection of an end-use/owner/operator in 2021. This includes completing this evaluation of interested parties within the following tentative timeframe: September 15th, 2021 Received expressions of interest from end-use/owner/operator groups September 23rd-30th, 2021 Preliminary Interviews with interested groups October 11th-22nd, 2021 Edina HRA to interview select groups based on evaluation of concept and criteria October 28th, 2021 Edina HRA to consider and select a preferred group for specific concept development and project negotiation On or before December 31st, 2021 Complete Redevelopment Agreement with select group. This timeline is subject to modification in the sole discretion of the Edina HRA. 3 EXPRESSION OF INTEREST SUBMITTAL REQUEST Given the objectives described above and desire by the Edina HRA to solicit and select an end- use/owner/operator, please address the following items in your initial response to the Edina HRA. 1. In letter format: a. Please describe your business and operational entity (holding company, group and/or individual restaurant concepts or portfolio under control of principals). Please introduce each of the principals that would be the key investment, capital and operational contributors to the venture. b. Describe one or two of your group’s current concepts that are either similar or would reflect the level of concept, design, quality and/or operating model format that you would bring to this Site. c. Describe in concept through a narrative and (attach separately) any illustrative photos or drawings, the basic concept vision your group would bring to the site. Using the concept guidelines in Section 2 above, indicate how your concept builds on or enhances these objectives. d. Address the Land Control and Ownership Model considerations described above. Indicate your groups interest in working under one or more of the models. Please provide commentary on any of the considerations that would be important to your group under each of the models you would consider. e. It is anticipated that construction of the Senior Cooperative project could commence as early as Spring of 2023. It is anticipated that the North Portion of the site development sequence would provide access to begin construction of the restaurant/dining/hospitality development in 2023, with completion an opening of the use in late 2023 or early 2024. Describe your anticipated timeline for development and timing sequence of opening this use contemplating this potential timeline. Please deliver your letter Expression of Interest via email by 5:00 p.m. on Wednesday, September 15th, 2021 to David Anderson at david.anderson@frauenshuh.com with a copy to Alex Hall alex.hall@uproperties.com and Bill Neuendorf at BNeuendorf@EdinaMN.gov. We invite any questions you have any time prior to the submittal date. The Edina HRA reserves the right to modify, cancel or amend this request at any time without notice. Thank you again for your interest and we look forward to your response! 4 Exhibit A OVERALL SITE PLAN CONCEPT 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) 5 Exhibit B NORTH PORTION OF THE SITE 6 Date: August 26, 2021 Agenda Item #: VI I.E. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:R eal Estate S ervic es Agreement for 5146 Eden Avenue Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the Real E state Services Agreement with F rauenshuh I nc. to represent the H R A in a potential hospitality-related transaction on the northern portion of the site. I N TR O D U C TI O N: T his Agreement is a follow up to the J uly 26, 2021 engagement letter between Frauenshuh, United P roperties and the E dina H R A. I t provides more detail on the scope of services to be provided by F rauenshuh and identifies the reimbursement for the brokerage services. T his Agreement has been jointly prepared by F rauenshuh and City staff. T he C ity Attorney has also reviewed this document. S taff recommends this Agreement be approved. AT TAC HME N T S: Description Frauens huh Service Agreement REAL ESTATE SERVICES AGREEMENT This Real Estate Services Agreement (this “Agreement”) is entered into on _____________, 2021, between the Edina Housing and Redevelopment Authority (“Owner”) and Frauenshuh Inc., a Minnesota corporation (“Frauenshuh”). RECITALS A. Frauenshuh is in the business of assisting property owners with real estate planning, development and marketing services for their properties (collectively, the “Real Estate Services”). B. Owner desires to retain Frauenshuh to provide the Real Estate Services for Owner’s properties located at 5146 Eden Avenue, Edina, Minnesota, 55436, a vacant parcel approximately 3.3 acres in size and depicted in the attached Exhibit A (the “Property”). C. Owner, Frauenshuh and United Properties previously executed the Engagement Letter dated July 26, 2021 which identify the general expectations and anticipated schedule for this work. D. Owner desires to have the vacant property redeveloped to contain three distinct but complimentary elements: (1) cooperative housing, (2) year-round hospitality/dining services that features combination of indoor and outdoor seating as well as indoor and outdoor activities, and (3) public green space connected to the adjacent public parking structure with a new pedestrian bridge. Elements 1 (cooperative housing) and 3 (public green space) are outside the scope of this Agreement. E. Owner and Frauenshuh wish to memorialize their agreement regarding: (i) the nature and the extent of the Real Estate Services to be performed by Frauenshuh; (ii) the time and manner for performing the Real Estate Services; (iii) the amount to be paid by Owner for the Real Estate Services; (iv) the rights and obligations of each party; and (v) other matters of importance to the parties. PROVISIONS In consideration of the mutual promises of the parties contained herein, and intending to be legally bound hereby, the parties agree as follows: A. Description of the Real Estate Services 1. Preparation of Initial Development Plan. Frauenshuh will assist the Owner in the facilitation of a preferred direction with the overall site development plan for the Property “the “Development Plan”). The scope of this work shall include but not limited to the specific uses, scope, general scale, and functions best suited to achieve the redevelopment vision of the Owner. Owner shall separately engage design and engineering consultants on preliminary concept planning and evaluation as needed to ascertain site constraints and articulate the concept to market participants. 2. Determination of Preferred Hospitality/Dining User. Frauenshuh shall assist the Owner in determining the preferred type of hospitality/dining user and preferred type of real estate transaction to best deliver the hospitality/dining element. This work shall include, but is not limited to, exploration of different types of hospitality/dining users currently operating or anticipated to be operating in the Twin Cities metropolitan area in the near future. This work shall also include exploration of the types of real estate transactions that could be applied to achieve the Owners vision for the Property in consideration of the market. 3. Serving as Owner’s Broker. Frauenshuh will act as Owner’s exclusive agent in marketing the Property for sale or lease. As the Owner’s broker, Frauenshuh and affiliated entities are not eligible to serve as the buyer or tenant of the Property unless this Agreement is modified by mutual consent. 4. Solicitation of Prospective Users. Frauenshuh shall prepare materials adequate to describe this business opportunity and distribute those materials strategically to prospective operators of the Hospitality/Dining Element. Prospective users include, but are not limited to, restaurateurs, tap room and distillery operators and other experienced operators of venues that combine food and beverage service with indoor and outdoor activities. Prospective users should be local, regional and national in scope. Within ten business days after the execution of this Agreement, Frauenshuh shall submit a marketing “Action Plan” to the Owner for consideration and approval. The Action Plan approved by Owner will describe any special requirements to be followed by Frauenshuh in connection with the marketing of the Property. 5. Providing Advice. Frauenshuh will advise Owner regarding the appropriateness of proposals or offers submitted by potential buyers or tenants, but shall take no action establishing a price, the conditions of transfer, or regarding any other material matter that would be binding on Owner without first discussing the proposed action with Owner and obtaining Owner’s approval. 6. Real Estate Services Do Not Include Tax, Accounting, Legal or Other Professional Services. Real estate planning, development, and marketing will have important tax, legal, and other consequences for Owner, and for that reason Frauenshuh recommends that Owner obtain appropriate legal, accounting and tax advice for Owner’s protection. Owner acknowledges that the Real Estate Services provided by Frauenshuh will not include providing tax, accounting, legal, or other similar advice, and that it is Owner’s responsibility to obtain such advice from competent accountants, lawyers, and tax consultants. B. Description of Obligations of Owner 1. Retaining of Frauenshuh. Owner hereby retains Frauenshuh to perform the Real Estate Services, including engaging Frauenshuh as Owner’s exclusive agent to sell or lease the Property. Owner acknowledges that this Agreement is an “Exclusive Right Listing Agreement,” and agrees that Frauenshuh is the Owners exclusive representative in the completion of a transaction originating from its efforts. 2. Statutory Disclosure Regarding Real Estate Services Fee Minnesota law requires Frauenshuh to make the following disclosure: NOTICE: THE REAL ESTATE SERVICES FEE RATE FOR THE SALE, LEASE, RENTAL, OR MANAGEMENT OF THE PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT. 3. Compensation. Owner shall compensate Frauenshuh for providing the Real Estate Services by paying Frauenshuh a real estate services fee in accordance with the attached Fee Schedule in Exhibit B, upon completion of a transaction, or in the event of cancellation of this agreement based on findings associated with feasibility or Owner’s preference for different use alternatives. Owner hereby grants Frauenshuh a security interest in the proceeds from any sale, lease, exchange, award in condemnation or other transfer of the Property, and in any earnest money, option consideration, or other payment due to Owner in connection with the Property, until the entire Real Estate Services Fee is paid. 4. Payment of Certain Expenses. Frauenshuh may from time to time recommend that Owner obtain services or otherwise incur expenses, including, but not limited to the following: a. Engineering, architectural, surveying and other similar services; b. Soil studies, borings, and environmental studies; c. Permit and application fees; d. Planning or services relating to preparing the Property for development, including grading and other pre-development services and expenses; e. Obtaining bonds or other surety instruments required by governmental authorities or lenders; f. Insurance; g. Accounting, legal, or tax-planning services; Frauenshuh shall not make any commitments for such outside services or expenses that would be binding on Owner without obtaining Owner’s consent, and Owner will not be obligated to pay for such costs absent such consent. If Frauenshuh incurs expenses for services of the kind described above that have been approved by Owner, Owner will promptly reimburse Frauenshuh for those expenses when presented with an invoice for those expenses accompanied by reasonable supporting documentation. 5. Cooperation. Owner agrees to cooperate with Frauenshuh in reasonable ways to facilitate Frauenshuh’s performance of the Real Estate Services. Owner shall provide Frauenshuh with: (i) accurate information regarding the Property; (ii) copies of any notices Owner receives regarding the Property; and (iii) such other information as Frauenshuh may reasonably request in connection with Frauenshuh’s performance of the Real Estate Services. C. Term This Agreement shall continue in effect until the first to occur of: (i) the completion of the closing of the sale or other transfer of the Property and Frauenshuh receives the Real Estate Services Fee; or (ii) one (1) year from the date of this Agreement, unless extended by mutual agreement; or (iii) cancelled by the Owner, subject to the terms and conditions of this Agreement, and with not less than thirty (30) days prior written notice. All of the obligations and promises of the parties contained in this Agreement shall survive and be enforceable after this Agreement ends. D. Rights Reserved by Frauenshuh Frauenshuh reserves the following rights: a. Right to Provide Real Estate Services for Other Properties and to Accept Other Listings. Owner agrees that Frauenshuh may provide services for other properties that are similar to the Real Estate Services Frauenshuh is providing hereunder, and that Frauenshuh may accept listing for other properties during the term of this Agreement even if those properties compete with the Property for potential purchasers. b. Right to Designate a “Protected List”. Within seventy-two (72) hours after the end of the term of this Agreement or cancellation hereof, Frauenshuh may provide Owner with a written list (the “Protected List”) identifying the potential purchasers and tenants with whom Frauenshuh has contacted in connection with the Property. If any person or entity identified on the Protected List, or an affiliate of such person or entity, enters into a contract for the sale, option, exchange, conveyance or lease the Property, or any part thereof or interest therein within one-hundred eighty (180) days after the expiration or earlier cancellation of this Agreement, Frauenshuh shall receive the full Real Estate Services Fee provided for in this Agreement in the same manner as though the term of this Agreement had not ended. IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK COMPETENT ADVICE. c. Compliance with Applicable Laws. Owner acknowledges that Frauenshuh is required to comply with state and federal laws and regulations governing the actions of real estate brokers and agents. Owner agrees that Frauenshuh will have the right to refrain from taking any action under this Agreement or otherwise requested by Owner if doing so would, in Frauenshuh’s reasonable opinion, violate any applicable laws or regulations, including, but not limited to, laws and regulations prohibiting discrimination against persons on the basis of their age, sex, race, religion, national origin, sexual preference or other protected classifications. E. Notices Any notice to be given to a party shall be: (i) personally delivered; (ii) sent by first class mail; or (iii) sent via electronic mail delivery with issuance of delivery receipt, to the other party at the address listed below (or to such other address as may be designated by notice to the other parties). Notice shall be deemed given upon the earlier of: (a) receipt, if by personal delivery; (b) two days after the date postmarked, if mailed; (c) upon receipt of issuance of the delivery receipt and reply confirmation of such notice by recipient if emailed. If to Owner: Edina Housing and Redevelopment Authority 4801 W 50th St Edina, MN 55424 Attn: Bill Neuendorf, Economic Development Manager Email: bneuendorf@edinamn.gov If to Frauenshuh: Frauenshuh Inc. 7101 West 78th Street Suite 100 Minneapolis, MN 55439 Attn: David Anderson, Senior Vice President Email: david.anderson@frauenshuh.com F. General Matters This Agreement describes the entire agreement of the parties and supersedes any and all prior agreements or discussions. The Agreement shall be construed under the laws of the State of Minnesota. For the convenience of the parties, any number of counterparts of this Agreement may be signed. Each signed counterpart shall be deemed an original. The parties have signed this Agreement as of this _____ day of ___________, 2021. Edina Housing and Redevelopment Authority: Frauenshuh, Inc. By:__________________________________ By:__________________________________ Scott Neal Its: Executive Director_____________________ Its:__________________________________ Exhibit A Subject Property - 5146 Eden Avenue Exhibit B Fee Schedule For Land Lease or Building Leasing* For lease transactions completed with Frauenshuh as the sole broker in the transaction, a fee equal to four percent (4%) of the net lease income over the initial term of the lease, paid ½ upon lease execution and ½ upon commencement of the Lease. For lease transactions completed with the tenant represented by a third-party broker (“co-broker”), a fee equal to six (6%) of the net lease income over the initial term of the lease, paid ½ upon lease execution and ½ upon commencement of the Lease to be split equally between the brokers involved with the transaction. If a co-broker seeks fee consideration in-excess-of these amounts, Owner to approve and agree to additional compensation at its sole discretion. For Land and/or Building Sale* For a direct sale transaction completed with Frauenshuh as the sole broker in the transaction without the involvement of a third-party broker (”co-broker”) representing the buyer, a fee equal to four percent (4%) of the gross proceeds from the sale, exchange or transfer of the Property, paid at closing. Where the transaction is completed with the buyer represented by a third-party broker (“co-broker”), a fee equal to six percent (6%) of the gross proceeds from the sale, exchange or transfer of the Property, paid at closing, to be split equally between the brokers involved with the transaction. *The consideration in a land lease, building lease, land or building sale or Owner developed use transaction shall be calculated on the agreed upon market rental rate or sale price prior to any governmental inducements or incentives, write- downs, participations, joint-venture, equity or equity like-kind contribution to the project. For any percentage rent arrangements, fair market value of the lease or land price shall be based on a market natural break calculation for operations of comparable size and scope. Reimbursable Expenses Frauenshuh will include reasonable costs of local travel, delivery charges and preparation of meeting materials as part of its fee. Any additional services including non-local travel and related expenses associated with the assignment, expenses shall be approved in advance in writing by Owner. Reimbursement Upon Early Cancellation or Expiration Upon the earlier of cancellation or expiration of this Agreement , Frauenshuh will be reimbursed for its time and expenses in delivering its services in an amount of $7,500 per month for the actual months (or proration thereof) that services have been performed. This provision does not waive any other Rights Reserved by Frauenshuh under this agreement. Date: August 26, 2021 Agenda Item #: VI I.F. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Edina T heater - R eques t for F inanc ial As s is tance Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required at this time; for discussion only. I N TR O D U C TI O N: T he property owner and prospective tenants have requested financial assistance in order to re-open the vacant facility. S taff will present a summary of the current situation and offer a recommendation to provide financial support. Direction is requested in response to the staff recommendation. AT TAC HME N T S: Description Staff Report Edina Theater Project Update 8-26-2021 August 26, 2021 Chair and Commissioners of Edina Housing & Redevelopment Authority Bill Neuendorf, Economic Development Manager Edina Theater – Request for Financial Assistance Information / Background: Originally constructed as a single-screen facility in 1934, the Edina Theater was rebuilt as a 4-screen theater in 1988. Operations at the Theater were halted in March 2020 due to the COVID-19 pandemic. The theater space has been unused since that time. The former tenant (Landmark Theaters) vacated the site in early 2021. Although they had lease obligations, they do not intend to re-occupy the facility. Two additional retail tenants remain in operation. Since Landmark moved out, City staff has received many calls of concern from Edina residents and other former customers who noted the importance of having a specialty film destination in Edina. Local print and television media have also published stories noting the importance of the facility. This theater makes an important contribution to the overall success of the 50th & France commercial district. The property is locally owned and is not offered for sale. The owner’s strong preference is to re-lease the vacant theater to another operator. Current Status City staff has been in regular communication with the property owner regarding their efforts to secure a new tenant for the building. Over the past several months, the owner pursued several different leads in search of a qualified and experienced operator to lease the vacant theater. The owner is currently considering offers from three different groups. Two prospects are traditional for-profit theater operators that have a successful local track record of providing first run movies as well as specialty films. One local non-profit film group has also expressed strong interest in re-opening the facility. While each of these parties has the interest and ability to proceed, they have all raised concerns about the high price to remodel the facility to meet the current customer expectations. The capital investment could easily reach $1.0 to $1.5 million. Housing and Redevelopment Authority Established 1974 STAFF REPORT Page 2 It has been many years since the theater has been updated. The former tenant (Landmark) deferred some maintenance and completed only minimal updates over the past decade. When the tenant vacated the premises, they removed most of the speakers, audio equipment and film projectors from each auditorium. They also removed most of the concession equipment. Modern theater-goers have many options to choose from and need to deliver a memorable and enjoyable experience to entice customers to venture away from their home live-streaming services. If the theater is to be successful, a large capital investment and creative experienced operator will be essential. Recommended Actions: Staff supports working with the owner and operator to create a path to success. While all parties need some type of support, the non-profit will need a higher level of financial support than the for-profit entities. Based on the substantial cost to update the facility and the general uncertainty in the theater industry, staff recommends financial support and relief be considered in order to revitalize this property: 1) Tenant Selection. Recommend that the preferred operator be selected by the property owner who holds the lease. It would be helpful to understand whether the HRA Board has any preferences or concerns over a for-profit or non-profit entity. 2) ARPA Grant Funding. Recommend that up to $200,000 of the City’s American Rescue Plan Act (ARPA) funds be granted to the property owner to address the negative economic impacts from COVID-19. These funds should be used for brick-and-mortar improvements to the facility. This recommendation will be noted in a separate report to the City Council regarding overall spending of ARPA funds. 3) Tenant Reimbursement. Recommend that the HRA use existing TIF monies (or other HRA funds) to support the new tenant as they remodel the facility. Funds could be awarded after completion of the remodeling work subject to terms and conditions in a Redevelopment Agreement. These funds should be used for brick-and-mortar improvements. The amount of funding has not yet been determined but could be in the range of $50,000 to $500,000. These funds should be provided in exchange for assurances that the facility will operate and serve the community for many years. 4) Infrastructure Improvements. Recommend that the HRA use additional TIF monies (or other HRA funds) to improve the aging sidewalks and streetscapes that provide access to the theater building. This work is estimated to cost up to $400,000 and could be completed in 2022. The cost of this work is typically assessed to the businesses. Due to the funding challenges, staff recommends that these needed improvements be paid for by the HRA without assessment to the commercial properties. Guidance is requested before staff continues negotiations with the property owner and prospective tenants. # # # Date: August 26, 2021 Agenda Item #: VI I I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:5146 Eden Avenue - P otential S ale Information Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: F or informational purposes only; no action required at this time. I N TR O D U C TI O N: S taff has received a letter of intent to purchase a portion of the property at 5146 E den Avenue. T he potential buyer intends to purse an age-restricted cooperative housing development on the southern portion of the site. B efore a decision is made about this potential transaction, staff recommends that the H R A Board better understand the preferred outcomes on the remainder of the site. A closed session to discuss the potential sale of real estate will be scheduled at a future time. Due to the sensitive nature of real estate negotiations, this future meeting will be closed to the general public as allowed by M innesota statute. Any decision or other action regarding potential sale of real estate will take place at a separate meeting that is open to the general public.