HomeMy WebLinkAbout2022-09-15 HRA Regular Meeting PacketAg enda
E dina H ousing and R edevelopm ent Author ity
City of E dina, Minnesota
City Hall, Council Chambers
Thursday, Septem ber 15, 2022
7:30 AM
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I.Call to Ord er
II.Roll Call
III.Pledge of Allegia n ce
IV.Ap p roval of Meetin g Agen d a
V.Com m unity Com m en t
Du ring "Com m unity Com m en t," th e Edin a Housing and Redevelop m ent
Au thority (HRA) will in vite resid ents to sh are new issues or con cern s tha t
h aven't been con sid ered in th e p ast 30 da y s b y th e HRA or w h ich a ren't
slated for fu ture consideration . Individ u als m u st lim it their com m ents to
three m inutes. Th e Ch air m a y lim it the num ber of sp ea kers on th e sa m e
issue in th e interest of tim e a n d topic. Gen era lly sp ea king, item s tha t are
elsewhere on tod ay's a genda m a y not b e addressed d u ring Com m unity
Com m en t. In d ividua ls sh ould not expect th e Ch air or Com m issioners to
resp ond to th eir com m en ts toda y . Instead the Com m issioners m ight refer the
m atter to sta. for consideration a t a fu ture m eeting.
A.E xecu tive Director's Resp onse to Com m u n ity Com m ents
VI.Ad option of Con sen t Agenda
All a genda item s listed on the consent a genda a re con sid ered rou tin e and
will be en acted by one m otion. There will be no sepa rate d iscussion of such
item s unless requested to be rem oved from the Con sen t Agenda by a
Com m ission er of the HRA. In su ch ca ses the item w ill b e rem oved from th e
Consent Agen d a and con sid ered im m ediately follow ing the a d option of th e
Consent Agen d a. (Fa vorable rollcall vote of m a jority of Com m issioners
p resent to approve.)
A.Dra ft Septem ber 7, 2022 Special Meetin g Minutes
B.Adop t the Proposed Budget and Esta b lishin g th e Prop osed Tax Levy Paya b le
in 2023
VII.Reports/Recom m enda tions: (Favora b le vote of m ajority of Com m ission ers
p resent to approve excep t where n oted)
A.Discu ssion : Prop osed Up d ate to Ta x In crem ent Fin ancing Policy
B.2022 Mod i:ca tions to New Mu ltifa m ily Develop m ent A.orda b le Hou sin g
Policy
VIII.HRA Com m issioners' Com m en ts
IX.Executive Director's Com m ents
A.Op en to Business m id -y ea r rep ort
Th e E d ina Housing a n d Redevelop m ent Au thority wa n ts all pa rticip ants to be
com fortable b ein g pa rt of th e p u b lic p rocess. If y ou n ee d a ssista n ce in the w a y of
h ea ring am pli:ca tion, a n in terp reter, large-p rint docum en ts or som ethin g else,
p lease ca ll 952-927-8861 72 hou rs in advance of the m eeting.
X.Ad jou rn m ent
Date: S eptember 15, 2022 Agenda Item #: V.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
O ther
F rom:Liz O ls on, Administrative S upport S pecialist
Item Activity:
Subject:Exec utive Director's R espons e to C ommunity
C omments
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:
None.
I N TR O D U C TI O N:
Executive Director N eal will respond to questions asked at the previous council meeting.
Date: S eptember 15, 2022 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:Draft S eptember 7, 2022 S pecial Meeting Minutes 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 S eptember 7, 2022.
I N TR O D U C TI O N:
AT TAC HME N T S:
Description
Draft Minutes from September 7, 2022
Page 1
MINUTES
OF THE SPECIAL MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
SEPTEMBER 7, 2022
IMMEDIATELY FOLLOWING THE REGULAR CITY COUNCIL MEETING
I. CALL TO ORDER
Chair Hovland called the meeting to order at 10:17 p.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. MEETING AGENDA APPROVED - AS PRESENTED
Motion by Commissioner Staunton, seconded by Commissioner Anderson, approving
the meeting agenda as presented.
Roll call:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
IV. COMMUNITY COMMENT
No one appeared.
IVA. EXECUTIVE DIRECTOR’S RESPONSE TO COMMUNITY COMMENT
None.
V. CONSENT AGENDA ADOPTED - AS PRESENTED
Member Jackson made a motion, seconded by Member Pierce, approving the consent
agenda as presented:
V.A. Approve Minutes of the Regular Meeting July 21, 2022
V.B. Approve Loan Agreement with Brainerd Entertainment LLC dba Mann
Theaters
V.C. Adopt Resolution 2022-09; Authorizing an Interfund Loan for Eden Willson Tax
Increment Financing District
V.D. Approve Request for Purchase, 5146 Eden Avenue Engineering Services for
Rezoning Application, awarding the bid to the recommended low bidder,
Loucks, $38,600
Rollcall:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
VI. EXECUTIVE DIRECTOR’S COMMENTS – Received
VII. HRA COMMISSIONERS’ COMMENTS – Received
VIII. ADJOURNMENT
Motion made by Commissioner Jackson, seconded by Commissioner Pierce, to adjourn
the meeting at 10:21 p.m.
Roll call:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
Minutes/HRA/September 7, 2022
Page 2
Respectfully submitted,
Scott Neal, Executive Director
Date: S eptember 15, 2022 Agenda Item #: VI.B.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
O ther
F rom:Alis ha Mc Andrews , F inance Director
Item Activity:
Subject:Adopt the P roposed Budget and Establis hing the
P ropos ed Tax Levy P ayable in 2023
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:
Adopt the P roposed Budget and E stablishing the P roposed Tax L evy P ayable in 2023.
I N TR O D U C TI O N:
T he H R A is a separate taxing authority formed by the C ity C ouncil in 1974. T he purpose of the levy is to
pay a portion of the administrative expenses that are necessary to operate the H R A. T he levy proposed
for 2023 is $244,400, which is a $7,100 increase over the 2022 levy. T he preliminary H R A operating
budget and tax levy for 2023 remains the same as the 2022-2023 biennial budget that was approved by
Council and the H R A on D ecember 7, 2021.
T he H R A will be asked to hold a public hearing and adopt the final 2023 H R A Budget and L evy in
D ecember 2022.
AT TAC HME N T S:
Description
Res 2022-10
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 2022-10
ADOPTING THE PROPOSED BUDGET AND ESTABLISHING THE PROPOSED TAX LEVY PAYABLE
IN 2023
WHEREAS, The Edina Housing and Redevelopment Authority (the “HRA”) has authorities and powers
according to MN Statutes, Sections 469.001 to 469.047. MN Statutes, Section 469.033, subd. 6 grants
the HRA the power to levy and collect taxes subject to a resolution of consent from the Edina City
Council for a set period.
WHEREAS, The Edina City Council passed Resolution 2021-72 consenting to an HRA tax levy payable in
2023.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
Section 1: That there is proposed to be levied upon all taxable real and personal property in the
City of Edina, a tax rate sufficient to produce the amount as follows:
HRA GENERAL FUND $244,400
Section 2: That the preliminary budget is as follows:
HRA GENERAL FUND TAX LEVY REVENUES $244,400
HRA GENERAL FUND EXPENDITURES $244,400
Passed and adopted by the Housing and Redevelopment Authority on September 15, 2022.
ATTEST:
James Pierce, Secretary James B. Hovland, Chair
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 was duly adopted by the Edina
Housing and Redevelopment Authority at its Regular Meeting of September 15, 2022, and as recorded in
the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this ____ day of __________________, 20___.
_________________________________
Executive Director
Date: S eptember 15, 2022 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:Dis cus s ion: P ropos ed Update to Tax Increment
F inancing P olicy
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 purposes only.
I N TR O D U C TI O N:
T his item pertains to the policy regarding the use of Tax I ncrement Financing. T he policy was last updated in
2011.
S taff recommends that the policy be updated to clarify the conditions and outcomes to be pursued with T I F.
P roposed changes are attached for discussion purposes. T his proposal strives to achieve these four goals:
1) Clarify intent/purpose when T I F is used
2) Clarify minimum expectations & outcomes when T I F is used
3) Clarify process to review and consider T I F in a manner coordinated with the zoning review process
4) Increase application fee to offset staff expenses
T his proposal is intended to be discussed in S eptember with final changes considered at a future H R A meeting.
AT TAC HME N T S:
Description
Draft TIF policy update
☒City Council Approved: 2011
☐City-Wide Revised: Click here to enter a date.
☐Department
City of Edina Policy
Tax Increment Financing Policy
This policy is intended to provide guidance to developers, property owners, staff and the community at large
regarding Edina’s use of Tax Increment Financing as a public finance tool to attract and support high quality
development that contributes to a strong property tax base and to the high quality of life in Edina. For the purpose
of this policy, the “City” shall also mean the Edina Housing and Redevelopment Authority (HRA), which assists in a
variety of housing, redevelopment, and economic development activities for the City of Edina.
General TIF Definition:
The City of Edina has the authority to use Tax Increment Financing (TIF) pursuant to Minnesota State
Statutes. TIF uses the increased property taxes generated by new real estate development within tax
increment financing districts to pay for certain costs associated with the development. The complete TIF
Act can be found in Minnesota Statutes, Section 469.174-469.1799.
For the purpose of this policy, “public benefits” shall include some or all of the following: increase in
property tax base, retention or attraction of permanent employment opportunities, revitalization of vacant
properties, removal of blighting conditions, remediation of environmental contamination, retention or
creation of affordable housing, preservation or restoration of historic or cultural assets, public parking,
public roadways, public bicycle or pedestrian routes, public utilities, stormwater improvements, public
realm improvements (including public art, streetscaping and landscaping elements) that are secured with
easements or dedicated to a public body.
Policy Purpose:
Establish criteria and guidelines for how new Tax Increment Financing (TIF) Districts are established and how
Tax Increment Financing (TIF) is utilized in Edina.
Help insure Ensure that TIF assistance is used in a transparent, consistent and equitable manner to provide
benefits and value to the community.
Ensure that TIF is used to deliver both short-term and long-term improvements to the general public and
broad Edina community.
City of Edina
Tax Increment Financing Policy
Page 2
General TIF Policies:
1) The use of TIF will be considered for projects that qualify and meet the general use of law as defined
in Minnesota Statutes, Section 469.174 – 469.1799.
2) The use of TIF will only be considered on case by case basis for projects that help accomplish the
City’s goals for housing, redevelopment, and economic development described in its Comprehensive
Plan, Economic Development Strategies, and other related policy documents approved by the City
Council.
3) TIF may be considered to encourage, stimulate, and attract desirable development and/or
redevelopment of a scale and quality that would not occur without the use of TIF.
4) TIF should be used only to fill a financial gap that is unable to be satisfied by traditional equity and debt
sources.
4)5) TIF will shall only be provided to developers of market-rate projects on a pay-as-you-go basis.
In certain cases, up-front or other forms of assistance may be considered by the City but will be at the
sole discretion of the City Council.
5)6) The City reserves the right to approve or reject the use of TIF, the amount of TIF, and the
total term, on a case by case basis, taking into consideration established policies, project criteria, and
demand on services in relation to the potential benefits from the project. Deviations from this policy
shall be allowed if specifically approved by the City Council.
6)7) Applicant will pay for all legal and consultant costs associated with the preparation, processing,
review and actual use of TIF. Applicant will submit to the City a deposit equal to the total estimated
costs for legal and consultant fees. The City will draw upon these funds to pay all related expenses.
7)8) Applicant will also pay to the City a separate non-refundable application fee of $10,0002,000
to reimburse staff costs and cover all other City related costs associated with the processing the TIF
request.
8)9) Projects utilizing TIF are responsible for paying their share of Fiscal Disparities contribution
from the project.
9)10) The City’s Financial Advisor shall prepare the TIF plan and the applicant will provide to the
City and its financial advisor all information necessary to conduct a financial analysis of the proposed
project.
10)11) Tax increment financing assistance will not be provided to projects that have the financial
feasibility to proceed without the benefit of tax increment financing. The business or developer shall
provide the City with a project financial pro-forma and a development budget at the time of
application to confirm the “but for” test. In effect, tax increment financing assistance will not be
provided solely to provide an excessive contingency to the project or broaden a developer’s profit
City of Edina
Tax Increment Financing Policy
Page 3
margins on a project.
11)12) Prior to approval of a tax increment financing plan, the business developer shall provide any
required market and financial feasibility studies, appraisals, environmental studies, soil boring
information for the project, and other information or data that the City or its financial consultants
may require in order to proceed with an independent underwriting. Such information may be public
information at the time of submission.
12)13) The business developer should provide adequate financial guarantees to ensure completion of
the project and the repayment of the tax increment financing subsidy. These may include, but are not
limited to, assessment agreements, insurance, letters of credit, etc.
13)14) Any business or developer requesting tax increment financing assistance should be able to
demonstrate past successful general development capability as well as specific capability in the type and
size of development proposed. The developer shall submit a list of qualifications and references.
15) Inflated developer fees not acceptable. The developer fees, soft costs and operating expenses included
in the pro forma must be reasonable and typical for the industry. Inflated fees or unreasonable
expense categories will not be accepted when TIF is used.
16) The TIF agreement will include “look back” provisions to ensure that the TIF was actually needed and
shall including early termination and/or “claw back” provisions if it is determined that TIF was not
needed.or will be reimbursed unless otherwise determined by the City Council.
17) Maximum TIF contribution. The principal amount of TIF shall be justified by the “but for” evaluation
and shall not exceed the value of exceptional public benefit delivered by the completed project.
18) TIF shall not be used to subsidize inflated real estate transactions. All acquisition costs shall be
scrutinized to ensure that the purchase price is fair and reasonable in relation to recent comparable
transactions. An independent real estate appraisal shall be provided, if deemed necessary by staff.
14)19) The principal amount of TIF pledged to market-rate redevelopment projects shall not exceed
the equivalent of the project costs that deliver the extraordinary public benefits.
15)1) The provision of TIF is contingent upon receiving all other necessary project approvals for the
City.
20) Park Dedication Fees. When TIF is used to support development of new outdoor public space such as
public plaza, public courtyard or similar public space, the value of such spaces shall not be deducted
from any Park Dedication Fees due from the market-rate redevelopment project.
21) Grant funding. Grand funding from other agencies must be pursued when TIF is used. The amount fo
TIF provided may be reduced depending on the amount of grant funding received. The total grant
funding received shall be included in the pro formas when the “look back” is calculated.
City of Edina
Tax Increment Financing Policy
Page 4
22) Business Subsidy Laws - The City will require compliance with the State of Minnesota Business Subsidy
Laws in Minnesota Statutes, Section 116J.993 through 116.997, unless the project meets one of the
business subsidy exceptions.
23) Transparency - Staff shall submit all required reports on the use of TIF to Hennepin County and the
Minnesota Office of the State Auditor. Additionally, staff shall provide a report to the Edina HRA at
least once per year that summarizes the use of TIF. This report shall be made available to the
applicable School District(s) and to the general public upon request.
Minimum Expectations for Private Development Utilizing TIF
1) Site Plan - The site plan for any private project supported with TIF shall be designed to substantially
follow the applicable design guidelines as adopted in Edina’s Comprehensive Plan, including the Southdale
Design Experience Guidelines. Essential topics include: subdivision of superblocks, setbacks, street room,
street level activation and public realm spaces. The expected quality and nature of site plan
improvements may be higher when TIF is contributed to market-rate projects. City Council shall make
the final determination of whether the guidelines have been sufficiently addressed.
2) Public Realm Experience - A vibrant and welcoming public realm experience is required for any project
supported with TIF. Examples of contributing elements include (but are note limited to): sidewalks
beyond the minimum required by City Code, public plaza, public seating areas, integrated transit shelters,
landscaping, hardscaping, engaging storefronts, and engaging walk-up units.
3) Public Art. Projects supported with TIF shall incorporate public art as part of the public realm
experience. At a minimum, the artistic elements shall be consistent with those contained in the final
approved plans. Additional art elements may be required when TIF is contributed. Members from the
Edina community shall be sincerely engaged as part of the artist-selection process and/or the art-selection
process. The developer shall make the final selection keeping in mind the recommendation and input
from the community members.
4) Superior Design and Finish. All market-rate projects supported with TIF shall include a superior level of
architecture and design and shall include superior exterior finish materials to make the maximum long-
term contribution to the public realm experience.
5) Affordable Housing Units. Multi-family redevelopment projects supported with TIF should incorporate
any required affordable units into the site, as opposed to providing a donation to Edina’s Affordable
Housing Trust Fund. This expectation may be modified at the discretion of the City Council.
6) Environmental Sustainability – Edina’s Sustainability Policy shall apply to all projects supported with TIF.
The applicable energy-efficiency standard shall be LEED or better. Certification shall be required and shall
be renewed (by the owner) regularly at the frequency required by the certifying agency throughout the
term of the TIF District.
City of Edina
Tax Increment Financing Policy
Page 5
7) Construction Mitigation - Prior to the site preparation and construction, a Construction Mitigation Plan
(CMP) shall be submitted to the City that identifies the strategies to address the inconveniences that
occur to the neighbors during the construction period. Topics to be addressed in CMP include advance
notice to neighbors, parking for contractors and suppliers, delivery routes, queuing locations for large
vehicles serving the site, temporary detours for vehicles, pedestrians, bicycles and transit, security, dust,
vibrations and noise. The CMP must also identify the responsible person to be contacted when problems
occur.
8) Diversity and Equity – Projects supported with TIF shall include best efforts to provide employment
opportunities for people that are under-represented in the construction field, including women and
people of color. Similar efforts shall be made to structure construction contracts so that disadvantaged
businesses (including MBE, WBE and VBE) have an opportunity to participate as part of the construction
team. The developer shall establish goals to include these employment and business opportunities and
prior to construction shall submit an intentional plan on how these goals will be effectively pursued.
Penalties shall apply when the developer fails to implement this plan.
Procedural Consideration of TIF
1) Authority rests with City Council. Consideration to establish a new TIF District and use incremental
property taxes generated therein shall be at the sole discretion of the City Council. Since each
development project is unique, the use of TIF shall be considered on a case-by-case basis only.
2) Application Form. Developers that request TIF shall submit a completed application in a form approved
by the City Manager. The application shall identify the sources of equity, anticipated source of debt and
calculation of the financing gap. A complete development sources and uses pro forma shall be submitted,
as well as an operating pro forma based on a stabilized project. The application shall identify the funding
gap that TIF could bridge and shall also identify the exceptional public benefits that could be delivered if
TIF is provided. After the application is submitted, the developer shall negotiate terms with the City
Manager or designee only.
3) Application Fee. The application fee shall be $10,000 to cover the staff time in reviewing and processing
the application. Fifty percent (50%) of the fee shall accompany the initial application. The remaining fifty
percent (50%) shall be due after the confirmation of a Term Sheet and prior to the preparation of full
contractual documents. These fees are in addition to the third-party expenses incurred by the City when
evaluating a TIF request and when preparing legal contracts pertaining to the use of TIF on the project.
Application fees are non-refundable.
City of Edina
Tax Increment Financing Policy
Page 6
4) Initial Staff Response and Notification of HRA Board. City staff shall review and evaluate the Application
for compliance with the City’s policies. Soon after receipt of a TIF Application, staff should advise the
Edina HRA about the TIF request including the potential benefits delivered if TIF would be applied. Staff
will then seek approval to engage third party advisors to fully vet the merits of the TIF request.
5) Preparation of Term Sheet. Staff shall prepare a Term Sheet that summarizes the key terms by which TIF
could be used for the project. The Term Sheet shall be submitted to the Edina HRA for review and
consideration. Third-party experts with experience in development financing shall be retained to
represent the City’s interest when necessary. The Term Sheet should be considered after preliminary
zoning approval is obtained. The HRA should provide verbal indication whether they are agreeable to
preparation of binding contracts based on the Term Sheet.
6) TIF Redevelopment Agreement. Staff shall work with legal and financial advisors to prepare complete and
binding legal agreements based on the Term Sheet. The Redevelopment Agreement should be considered
after final zoning approval is obtained.
7) The provision of TIF is contingent upon receiving all other necessary project approvals forfrom the City.
# # #
Date: S eptember 15, 2022 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:S tephanie Hawkinson, Affordable Housing
Development Manager Item Activity:
Subject:2022 Modifications to New Multifamily Development
Affordable Hous ing P olic y
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 modifications to New M ultifamily Affordable H ousing P olicy.
I N TR O D U C TI O N:
S taff is proposing two changes to the current Affordable Housing P olicy:
1. Currently the P olicy offers density bonuses to developments that include affordable housing units. H owever,
there is no detail spelled out as to how that is achieved. Developers often seek up to the maximum density
allowed in the Comprehensive P lan, but cannot have a greater density without a Comprehensive P lan
amendment. In order to adhere to the spirit of allowing density bonuses, Staff proposes that developments
seeking maximum densities are required to include affordable units rather than using the Buy-I n option.
2. Add language that the Owner/P roperty M anager of properties that include affordable units must cooperate with
the City's third party compliance officer.
AT TAC HME N T S:
Description
New Multifamily Affordable Housing Policy 2022
Pres entation
☐City Council Approved: 11/1/2015
☒City-Wide Revised: 3/25/2021
☐Department
City of Edina Policy
NEW MULTI-FAMILY AFFORDABLE HOUSING
The City and Housing and Redevelopment Authority recognize the need to provide a range of affordable
housing choices for those who live or work in the City. Since the land appropriate for new multi-family
residential development is limited, it is essential that a reasonable proportion of such land be developed
into affordable housing units. As such, the City of Edina adopts the following New Multi-Family
Affordable Housing Policy.
FOR THE PURPOSES OF THIS POLICY:
1. “Unit” means either a for-sale dwelling or a rental dwelling in which a lease is signed prior to
occupancy.
2. “Financial Assistance” provided the City includes but is not limited to tax increment financing,
land write downs, pass-through funding for purposes other than environmental remediation and
other forms of direct subsidy.
3. Any specific projects requesting exemptions to the affordable housing requirements of this
policy must seek recommendation from the Edina HRA and approval from the Edina City
Council based on alternative public purpose.
4. All new multi-family developments of 20 units or more must adhere to this policy and must be
zoned PUD Planned Unit Development.
5. Affordable Rental Housing Income and Rents are defined as both gross incomes (adjusted for
family size) and gross rental rates (adjusted for bedroom count and include utility allowance and
any fees that are a requirement of occupancy as per Section 42 of the Internal Revenue Service
Code.) that are updated annually by the Minnesota Housing Finance Agency (MHFA) and
published at www.mnhousing.gov. 2020 income and rental limits can be found at the end of this
policy.
6. Affordable Ownership Housing Income and Sales Price are affordable to and initially sold to
persons whose income is at or below 80% of Area median Income.
THIS POLICY APPLIES TO ALL NEW MULTI-FAMILY DEVELOPMENTS THAT:
1. Include 20 units of more.
2. Require rezoning or a Comprehensive Plan Amendment.
3. Receive financial assistance from the City of Edina and/or the Edina Housing and Redevelopment
Authority.
4. Are developed on property purchased from the City of Edina even if no financial assistance is
being provided by the City unless the waiver is recommended by the Edina HRA and approved
by the Edina City Council.
Page | 2
THE POLICY
1. New rental multi-family developments subject to this policy shall provide a minimum of 10%
residential units at 50% affordable rental rates or 20% residential units at 60% affordable rental
rates as defined below. The units shall be occupied by households at or below 60% of the Multi-
Family Tax Subsidy Income Limits (MTSP).
2. New for-sale developments shall provide a minimum of 10% of residential units at affordable
sales prices as defined below.
3. The affordable unit mix must be approximately proportional to the market rate unit mix.
4. Rental and for-sale/owner occupied affordable units shall provide the following:
a. on-site parking (either surface or enclosed) for affordable units and the cost related to
parking must be included affordable sales price or affordable rental rate. At least one
enclosed parking space shall be included in the purchase price of a for-sale unit in the
same manner offered to buyers of market rate units.
b. Affordable and market rate residents will have equal access to all entries, lobbies,
elevators, parking and amenities. Examples of amenities include storage lockers,
balconies, roof decks, outdoor patios, pools, fitness facilities, and similar unit and project
features.
c. Exterior appearance of affordable units shall be visually comparable with market rate
units in the development.
5. New rental housing will remain affordable for a minimum of 20 years and this requirement will
be memorialized by a Land Use Restrictive Covenant.
6. New for-sale or owner-occupied developments will remain affordable for a minimum of 30
years and this requirement will be memorialized by a Land Use Restrictive Covenant. The Land
Use Restrictive Covenant will contain a provision providing the Housing and Redevelopment
Authority or Edina Housing Foundation the right of first refusal to purchase affordable units.
7. The developers and/or owners of multi-family rental housing projects subject to this Policy by
receiving financial assistance shall accept tenant-based rental housing assistance including but not
limited to Section 8 Housing Choice Vouchers, HOME tenant-based assistance and Housing
Support. Tenants with rental assistance may occupy an affordable dwelling unit with the rent
charged not exceeding the maximum allowed by Metro HRA or the assistance provider.
Furthermore, the rent charged may not exceed the maximum allowed by the most restrictive
funding sourced. This requirement will be enforced through a contract between the City of the
project owner pursuant to which the owner will be required to adopt business practices that
promote fair housing and provide documentation of compliance with these requirements to the
City. This requirement will be further enforced through the City’s monitoring policies and
procedures.
8. Owners of City-assisted housing projects shall affirmatively market affordable housing
opportunities. All multi-family housing providers subject to this policy must submit an
Affirmative Fair Housing Marketing Plan (AFHMP) at lease every 5 years and a Survey and
Certification regarding AFHMP outcomes annually. Owners must advertise housing
opportunities on HousingLink or another medium acceptable to the City concurrent with any
other public or private advertising.
9. Recognizing that affordable housing is created through a partnership between the City and
developers, the City and/or Housing and Redevelopment Authority will consider the following
incentives for developments that provide affordable housing:
a. Density bonuses
b. Parking requirement reductions
c. Tax increment financing for projects that exceed the minimum requirement
Page | 3
d. Deferred low interest loans from the Housing and Redevelopment Authority and/or
Edina Housing Foundation
e. Property Tax Abatement
10. It is the strong preference of the City that each new qualifying development provide its
proportionate share of affordable housing on site. However, the City recognizes that it may not
be economically feasible or practical in all circumstances to do so. As such, the City reserves the
right to waive this policy (only if circumstances so dictate, as determined by the City). In lieu of
providing affordable housing in each new qualifying development, the City may consider the
following:
a. Dedication of existing units in Edina to 110% of what would have been provided in a
proposed new development. These units would need to be of an equivalent quality
within the determination of the City.
b. Financial risk and participation in the construction of affordable dwelling units of an
equivalent quality by another developer on a different site within the City.
c. An alternative proposed by a developer that directly or indirectly provides or enables
provision of an equivalent amount of affordable housing within the city. An alternative
could be payment of a Total Buy In (TBI) fee, a cash payment to the City in lieu of
providing affordable housing units. The TBI shall be equal to $125,000 per unit rounding
up to the next whole unit. The TBI would be due in cash or certified funds in full to the
City at the time of issuance of the building permit. A building permit will not be issued
unless the TBI is paid in full. The City Council may allow the housing developer to pre-
pay the TBI to satisfy a future Affordable Housing Opportunity on a case-by-case basis.
TBI will be deposited into the Affordable Housing Trust Fund to be used for the
development and preservation of affordable housing.
11. As allowing maximum density was intended to serve as a density bonus for the inclusion of
affordable units, for mixed use developments that have densities 50% or greater within the
density range, affordable units must be included in the development. For residential
developments with densities 75% or greater within the density range, affordable units must be
included in the development. For example:
a. If zoning allows between 50-100 units per acre, and the residential development is 50-87
units per acre, the developer/owner may elect to include the affordable units into the
development, pay the TBI fee, or an approved alternative.
b. If the proposed development is 88-100 units per acre, the development must include
affordable units within the building.
12. The owners and their agents of multi-family rental and ownership properties subject to this
policy must cooperate with the City’s compliance officer during the affordability period. Non-
compliance may be grounds for suspension of the rental license.
13. Guidelines for implementing this Affordable Housing Policy can be found in the Inclusionary
Housing Policy Program Guide.
202022 INCOME AND RENTAL LIMITS
Please refer to the income and rent tables published on www.mnhousing.gov.
201822 OWNERSHIP HOUSING INCOME AND SALES PRICE
GROSS INCOMES GROSS RENTS
60% 50% 60% 50%
1 Person
$43,440$49,320
$36,200
$41,100
Studio $1,086
$1,233
$905 $1,027
Page | 4
2 Persons $49,680
$56,340
$41,400
$46,950
1 Bedroom $1,164
$1,320
$970$1,100
3 Persons $55,860
$63,360
$46,550
$52,800
2 Bedroom $1,396
$1,584
$1,163$1,320
4 Person $62,040
$70,380
$51,700
$58,650
3 Bedroom $1,613
$1,830
$1,344$1,525
5 Persons $67,020
$76,020
$55,850
$63,350
4 Bedroom $1,800$2,041 $1,500$1,701
Acquisition Limit in this policy definition: $293,500$355,000
20202 income limits as published on the Metropolitan Council website are as follows: 80% of AMI
($78,500$89,400)
Income limits and maximum sales prices are updated annually. See www.mnhousing.gov and
https://metrocouncil.org/Communities/Services/Livable-Communities-Grants/Ownership-and-Rent-
Affordability-Limits.aspx
Originally adopted: November 1, 2015
Income/Rent Limits Adjusted: April 13, 2016
As amended: February 7, 2018
As amended: April 3, 2018
As amended: October 2, 2018
As amended: March 5, 2019
Income/Rent Limits Adjusted: December 10, 2020
As amended: March 25, 2021
As Amended:
Proposed Revisions to
Affordable Housing Policy 2022
September 15, 2022
Background Information
•2015 Policy initially approved
•2018 (winter) Buy-In option was
added
•2018 (Autumn) Affirmative Fair
Marketing and Non-
discrimination of Housing
Choice Vouchers added
•2019 Affordable Housing Trust
Fund Created
•Rents and incomes adjusted
annually
EdinaMN.gov 2
Affordable Housing
Goal
Affordable Housing Units
Approved %Remaining
Total Units 1804 340 18.8%1474
<30% AMI 751 22 2.9%729
31-50% AMI 480 178 37.1%302
51-80% AMI 573 140 24.4%433
Affordable Housing Goals
EdinaMN.gov 3
Policy Language:
Recognizing that affordable housing is created
through a partnership between the City and
developers, the City and/or Housing and
Redevelopment Authority will consider the
following incentives for developments that
provide affordable housing:
•Density bonuses
•Parking requirement reductions
Etc.
Change #1: Regarding Density
“Bonuses”
EdinaMN.gov 4
Example 1:
•Density range 50-100 units per acre
•Proposal is 95 units/acre (90% of Max)
Requirement: Development must include
affordable units.
Example 2:
•Density range 50-100 units/acre
•Proposal is 70 units/acre (70% of max)
Requirement:Either Buy-In, inclusion or
blend.
Density Level May Require
Inclusion
EdinaMN.gov 5
Project Project Density Comp. Plan % of Density
Onyx –240 units (0 affordable)53 units/acre 75 units/acre 71%
Lorient –46 units (3 affordable)50 units/acre 60 units/acre 83%
Nolan Mains –100 units (10 aff.)74 units/acre 75 units/acre 99%
The Loden –246 units (0 affordable)10 units/acre 30 units/acre 33%
Pentagon Village–200 units (20 aff.)16 units/acre 75 units/acre 21%
70th and France –267 units 46 units/acre 150 units/acre 31%
Approved Density: Mixed Use
EdinaMN.gov 6
Project Project Density Comp. Plan % of Density
Aria –185 units (8 affordable)93 units/acre 100 units/acre 93%
Millennium –375 units (11 aff.)66 units/acre 105 units/acre 63%
Avidor –166 units (16 aff.)95 units/acre 100 units/acre 95%
Sound on 76th –70 units (all aff.)35 units/acre 40 units/acre 75%
Edina Flats–18 units (0 aff.)14 units/acre 30 units/acre 47%
Amundson Flats–62 units (all aff.)50 units/acre 50 units/acre 100%
Hazelton Road Apts. –186 units 149 units/acre 150 units/acre 99%
4040 70th Street –118 aff.75 units/acre 75 units/acre 100%
Perkins Site –196 units (20 aff.)94 units/acre 100 units/acre 94%
Approved Density: Residential
EdinaMN.gov 7
Type of Zoning Density Range Mixed Use Residential Only
High Density Residential 12-60 >= 36 units >= 48 units
Greater Southdale Residential 50-100 >= 75 units >= 88 units
Neighborhood Node 10-60 >= 35 units >= 48 units
Office Residential 20-75 >= 48 units >= 61 units
Mixed Use Center 12-100 >= 56 units >= 78 units
Community Activity Center 90-150 >= 120 units >= 135 units
Regional Medical Center 50-100 >=75 units >= 88 units
Inclusion Required
EdinaMN.gov 8
Add:
•The owners and their agents of multi-
family rental and ownership properties
subject to this policy must cooperate with
the City’s compliance officer during the
affordability period. Non-compliance may
be grounds for suspension of the rental
license.
•Amend rent, sales price, and income limits
Change #2: Cooperation
EdinaMN.gov 9
EdinaMN.gov 10
Location of
Affordable
Housing
EdinaMN.gov 11
Questions?
Date: S eptember 15, 2022 Agenda Item #: I X.A.
To:C hair & C ommis s ioners of the Edina HR A Item Type:
Advisory C ommunic ation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:O pen to Busines s mid-year report 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:
No action required; for informational purposes only.
I N TR O D U C TI O N:
Each year, the E dina H R A works in partnership with Hennepin County to offer the "O pen to Business" program.
T he business advising and consulting services are provided at no cost to businesses located in Edina and to E dina
residents considering a business investment elsewhere. S ervices are provided by Vicky G onzalez and Tyler
Hilsabeck with M etropolitan C onsortium for C ommunity D evelopers (M C C D ).
A summary of the services provided in the first six months of 2022 is attached. T his continues to be a valuable
service to small business in E dina.
AT TAC HME N T S:
Description
O2B mid-year report 2022
Clients Served
Client Inquiry 1
New Entrepreneur/Startup 2
Existing Business 5
Total 8
Program Hours
Total TA Hours: 22.5
TA: Client Meetings, Providing Resources,
Client calls, Client Deliverables, Loan
Packaging
Edina
Year End Report
6.30.2022
Vicky Gonzalez 3137 Chicago Ave Minneapolis, MN 55407 (612) 843-3269 Industry Segment
Construction/Real Estate 1
Food 2
Health/Fitness 1
Technology 1
Retail 2
Service 1
Total 8
Referral Source
Entrepreneur 3
MCCD Community Partner 2
Municipality 2
Other 1
Total 8
Client Demographics # of Clients TA Hours
Women Entrepreneurs 2 7.5
BIPOC Entrepreneurs 2 9.5
Low Wealth Entrepreneurs 1 2.0
Highlights, Networking, & Outreach
Funding & Policy Updates
• In November 2021 MCCD was selected to participate in the administration of MN DEED’s Main Street COVID Relief Grant
Program. This July we wrapped up our portion of the admin. In total, MCCD funded 237 small business grants of
$2,395,000!
Staffing Updates
• A new small business development internship program has been established and we’ve welcomed our first summer
intern, Akshit Bhati. Akshit is working approximately 35 hours per week and is assisting the Open to Business team
with a variety of ongoing administrative projects.
• We are thrilled to announce the hiring of two business advisors, Elle Khang and Zamzam Mohammed!
• Elle brings experience as a business advisor, as well as operations and project management at her time at NDC. In that
role, she worked closely with BIPOC, women, immigrant, and low-wealth entrepreneurs as well as managing a project
that brought over 25 years of data onto their Salesforce system. She also worked as a loan officer at Hiway Credit Union
before her time at NDC. Elle has language proficiency in Hmong and will be supporting clients in Ramsey, Hennepin and
Dakota Counties. Elle will be starting Monday, August 1st.
• Zam has a background as a development professional with over three years of experience in nonprofit fundraising. In
her most recent role as Fundraising Manager for Artspace, she solicited donor funds from local community
members/board and corporations, manage each step of the prospecting process, and plan donor cultivation
events. She also has a background as a communications and social media coordinator. Zam has language proficiency
in Arabic and Somali will start working with clients in Hennepin County. Zam will start on Monday, August 15th.
Programming, Partnerships, & Trainings
• Ongoing: Seven MCCD staff members are working to complete the National Development Council’s Economic
Development Finance 101 class which will run through September. Graduates will build on their existing knowledge
base and gain a further understanding of both the basic tools and newest techniques used by successful economic
development finance practitioners to assist small businesses and create jobs.
• May 4th: In partnership with Amplio, LEDC, WomenVenture, and the City of Woodbury, MCCD is co-hosted an in-
person forum on nontraditional financing options including SBA programs, the MCCD loan program, and other
regional CDFI lending options. The forum was well attended by lenders and partners in the region.
• May 13th & June 10th: MCCD’s Emerging Leaders in Community Development program hosted monthly networking
events with lawmakers, community development leaders, entrepreneurs, and governmental leaders to provide early
and mid-career community development professionals access and opportunities. These events serve as inclusive and
accessible spaces for those interested in networking in the community development space.
Advertising & Outreach
• Open to Business debuts new Loan Closing Highlights with a write up on any recent loan closings. With the consent
of the business, new loan closings will be featured as an easy-to-share highlight with details on the project, business
photo, and financing summary.
• MCCD’s OTB team rolled out Small Business Tours in June with a walking tour of the City of Northfield to meet local
business owners and say hello to existing clients. In July a group of 12 MCCD staff and guests visited businesses in the
City of Rosemount. Small Business Tours will continue throughout OTB geographies into the Fall and pick up again in
Spring 2023.
• The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. New ads will
be created and updated periodically so keep checking back. The library was created in Q1 2022 to help streamline
how we share ads with partners and to give partners direct access to choose ads that meet their needs. Access the
Ad Library here.
Edina - Open to Business YTD 2Q22 Results
Number
of Clients Business Description Industry Business Stage Business Source
Low Wealth
Owned
BIPOC
Owned
Woman
Owned
City Impacted -
Business
City Impacted -
Resident Summary Comments All assistance Provided
Total TA
Hours
1 Real Estate Agent
Construction /
Real Estate Existing - Opportunity Entrepreneur x x Edina Minneapolis
Additional Quickbooks training
for existing client
Record
keeping/bookkeeping 5.5
1 Sports Training Health / Fitness Start-up Entrepreneur Edina Chanhassen
Additional QuickBooks training
for an existing company
Record
keeping/bookkeeping 1.5
1 Service Bureau Service Existing - Challenged Entrepreneur Edina Bloomington
Additional Quickbooks training
for existing client
Record
keeping/bookkeeping 2.5
1
Brewery -tap room and
distribution Food Existing - Challenged
MCCD Community
Partner/Member Org Saint Paul Edina
DEED Small Business Emergency
Loan client. Assisted with loan
forgiveness.Loan Facilitation 1.5
1 Telecom Technology Existing - Opportunity
MCCD Community
Partner/Member Org Edina Edina
QuickBooks Setup and Training
for existing business
Record
keeping/bookkeeping;Ini
tial Consultation 4.5
1 Retail Store Retail Client Inquiry Municipality x x Edina Edina
Marketing and Business Plan
Assistance
Business Plan
Development;Marketing 2
1 E-commerce Craft Retail Retail Pre-start planning Municipality x Edina Edina
Client creates artisan crafts and
wanted help setting up an Etsy
store as a side hustle
Strategic planning;Initial
Consultation 4
1 Ice Cream Food Existing - Opportunity Other Bloomington Edina
State of Minnesota DEED Small
Business Emergency Loan client.
Assisting with SBEL loan
forgiveness and ongoing
technical assistance.Loan Facilitation 1
8 1 2 2 22.5