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HomeMy WebLinkAbout2025-02-27 HRA Packet Meeting location: Edina City Hall Council Chambers 4801 W. 50th St. Edina, MN Housing & Redevelopment Authority Meeting Agenda Thursday, February 27, 2025 7:30 AM Participate in the meeting: Watch the meeting on cable TV or YouTube.com/EdinaTV. Provide feedback during Community Comment by calling 312-535- 8110. Enter access code 2869 375 0854. Password is 5454. Press *3 on your telephone keypad when you would like to get in the queue to speak. A staff member will unmute you when it is your turn to speak. Accessibility Support: The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large-print documents or something else, please call 952-927- 8861 at least 72 hours in advance of the meeting. 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Approval of Meeting Agenda 5. Community Comment During "Community Comment," the Chair will invite residents to share issues or concerns that are not scheduled for a future public hearing. Items that are on tonight's agenda may not be addressed during Community Comment. 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. Individuals should not expect the Chair or Commissioners to respond to their comments tonight. The Chair will respond to questions raised during Community Comments at the next meeting. 5.1. Executive Director's Response to Community Comments 6. Adoption of Consent Agenda All agenda items listed on the Consent Agenda will be approved by one motion. There will be no separate discussion of items unless requested to be removed by a Commissioner. If removed the item will be considered immediately following the adoption of the Consent Agenda. (Favorable roll call vote of majority of Commissioners present to approve, unless otherwise noted in consent item.) 6.1. HRA Minutes from January 16, 2025 regular meeting and February 13, 2025 special work session minutes. Page 1 of 34 6.2. Resolution 2025-03: Authorizing Lease Extension with United States Postal Service 7. Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) 7.1. Pentagon Village - Project Update 7.2. 5146 Eden Avenue - Solicitation of Proposals to Sell and Redevelop Land 8. Executive Director Comments 8.1. 7001 France Avenue - Project Update 8.2. Special Legislation for TIF in Edina - Update 9. HRA Member Comments 10. Adjournment Page 2 of 34 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JANUARY 16, 2025 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:31 a.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Jackson, Pierce, and Risser. Absent: Commissioner Agnew. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED – AS PRESENTED Motion by Commissioner Pierce, seconded by Commissioner Jackson, approving the meeting agenda as presented. Ayes: Jackson, Pierce, Risser, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. V.A. EXECUTIVE DIRECTOR’S RESPONSE TO COMMUNITY COMMENTS Executive Director Neal responded there were no past Community Comments. VI. ADOPTION OF CONSENT AGENDA AS PRESENTED Motion by Commissioner Pierce, seconded by Commissioner Jackson, approving the consent agenda as revised to remove Item VI.D., Draft Minutes of Special Meeting on December 17, 2024, and Regular Meeting of December 19, 2024, as follows: VI.A. APPOINTMENT OF THE EXECUTIVE DIRECTOR OF THE HRA VI.B. ADOPT RESOLUTION NO. 2025-01, DESIGNATING OFFICIAL NEWSPAPER VI.C. ADOPT RESOLUTION NO. 2025-02, DESIGNATING OFFICIAL DEPOSITORIES VI.D. DRAFT MINUTES OF SPECIAL MEETING ON DECEMBER 17, 2024, AND REGULAR MEETING ON DECEMBER 19, 2024 Ayes: Jackson, Pierce, Risser, and Hovland Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA VI.D. DRAFT MINUTES OF SPECIAL MEETING ON DECEMBER 17, 2024, AND REGULAR MEETING ON DECEMBER 19, 2024 – APPROVED The Board discussed the potential meeting locations for Commissioners or other City staff to meet with community members. Motion by Commissioner Risser, seconded by Commissioner Jackson, approving Draft Minutes of Special Meeting on December 17, 2024, and Regular Meeting of December 19, 2024, as published. Ayes: Jackson, Pierce, Risser, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS Page 3 of 34 Minutes/HRA/January 16, 2025 Page 2 VII.A. ELECTION OF OFFICERS – APPROVED Executive Director Neal stated that the current officers are as follows, Mayor Hovland as Chair, Commissioner Jackson as Vice Chair, and Commissioner Pierce as Secretary. Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the Election of Officers with Mayor Hovland as Chair, Commissioner Jackson as Vice Chair, and Commissioner Pierce as Secretary. Ayes: Jackson, Pierce, Risser, and Hovland Motion carried. VII.B. 5146 EDEN AVENUE – PROJECT UPDATE AND DISCUSSION – PRESENTED Economic Development Manager Neuendorf presented information on the project at 5146 Eden Avenue, including information regarding the introduction, the desired direction, speed vs. price, City policies and goals, property uses, market demand, ownership vs rental housing, complexity vs certainty, challenges of the Zoning Code, alignment with the Comprehensive Plan, private financing vs public financing, sales revenue uses, and closing the deal. The Board asked questions regarding the response from exploring the market, differences this time around compared to how this project was handled in the past, and whether mixed-use zoning can be done ahead of a sale. Economic Development Manager Neuendorf stated that there is strong interest in the luxury sector for townhome developers and some interest in senior co-ops, but he has not heard any interest in condominiums. Economic Development Manager Neuendorf stated that they still have a contract with Jester, but it is unenforceable, and the dates are lapsed, but they still have interest in the site. Executive Director Neal stated that he gave the order to demolish the building on this site in 2011, and since then, there have been many different creative ideas, but nothing has worked. Executive Director Neal stated that the sale of this property could provide enough economic value that could be put into the capital spending to reduce the capital levy. The Board discussed the PUD process and options they may have, relaxing current requirements, housing affordability, adding criteria of using the drop off for parking, analysis done on why this site would not be a good use for the Fire Station, and proceeds of a potential sale of this site to go to purchasing the land south of Fire Station #2 being built. Economic Development Manager Neuendorf stated that the selection of the developer and general concept comes first, then the site plan, then closing the real estate and then the building last. Community Development Director Teague stated that the zoning could be done proactively to PCD-2 but not rezoning prior to sale gives the City more leverage. The Board expressed concerns regarding not being able to rezone to PCD-2 and having to go to PUD instead, falling back into the same process as they have in the past. The Board discussed the process used by the school district when selling the old school bus garage site. Executive Director Neal stated they did a more selective RFP process. VII.C. HRA 2024 YEAR IN REVIEW – PRESENTED Economic Development Manager Neuendorf presented the 2024 Year in Review for the HRA, including the large-scale construction activity in 2024, redevelopment finance in Edina, Maison Green Page 4 of 34 Minutes/HRA/January 16, 2025 Page 3 Apartments and Starling Restaurant, progress at Pentagon Village, progress toward housing affordability since 2004, Centennial Lakes District from 1988-2013, Grandview #1 District 1984- 2013, 44th and France #2 District, and 50th and France #2 District. Executive Director Neal stated that they have an operating protocol with the City of Richfield, and he meets with the school superintendent annually to discuss various projects and TIF districts in the area. The Board asked for an updated report on compliance for affordable housing at a future meeting and asked where the funding for different programs listed in the report came from. Economic Development Manager Neuendorf updated that at 7250 France Avenue, they closed on the financing for the office building on December 31, 2024, and construction should begin in the next couple of weeks/months. Economic Development Manager Neuendorf stated that SPARC money was already collected, and the HRA has a small tax levy that was used for various efforts. Affordable Housing Development Manager Hawkinson stated that a lot of the housing projects are funded through the Affordable Housing Trust Fund, and the Comcast Program was funded with ARPA. VIII. EXECUTIVE DIRECTOR COMMENTS – Received IX. HRA MEMBER COMMENTS – Received X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Pierce, to adjourn the meeting at 9:03 a.m. Ayes: Jackson, Pierce, Risser, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Page 5 of 34 Page 1 MINUTES OF THE SPECIAL WORK SESSION MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 13, 2025 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. and then explained the reasoning behind holding this work session. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, and Risser. Absent: Commissioner Pierce III. MEETING TOPICS III.A. THE INTERSECTION BETWEEN CITY POLICIES AND PLANS, AND AFFORDABLE HOUSING Affordable Housing Development Manager Hawkinson presented background information on the 2024-2025 Budget Work Plan, direction for affordable housing in Edina, how they got to where they are now, Housing Strategy Task Force Plan, Affordable Housing Policy, Transportation chapter of Comprehensive Plan, policies and plans, Tree Protection Ordinance, and existing programs. Diversity, Equity, and Inclusion Manager Brooks presented information regarding budget pillars and values, community well-being and affordable housing, relation to values, Comprehensive Plan, land use challenges, and additional challenges to achieving goals. The Board gave feedback regarding looking at the demographics and Edina workforce to help guide on what should be done next, compliance not being enforced, having more specific and attainable goals, and areas of concentration in the City. The Board expressed concerns regarding the disconnect between the options available and what the documents have shown are the needs of the City, funding sources for meeting those needs, and going to the General Fund for financing. Affordable Housing Development Manager Hawkinson stated that enforcement was soft in the beginning for the Affordable Housing Units, but now they hold back TIF financing until they are in compliance. The Board had discussion regarding the topics of areas of concentration, alternative housing for seniors, high land prices in Edina, going back to the drawing board and getting creative, enforcing standards, cost of construction, and where they want to put their resources and policies. The Board asked how they can align their interest with the potential sources of funds. Affordable Housing Development Manager Hawkinson stated that she has applied for some Met Council funds, trust fund money, and LAHA funds, but it includes a lot of effort for a little bit of money. The Board expressed concerns about the lack of a robust fundraising arm for Affordable Housing in the Edina and launching a project that has a fatal flaw. Affordable Housing Development Manager Hawkinson stated that they have no control over the sale of NOAH homes, but they can give options for preserving single-family homes. Page 6 of 34 Minutes/HRA/February 13, 2025 Page 2 Community Development Director Teague clarified that the road around Fire Station 2 is a ring road and was designed to serve as an access road for the back parcel. The Board asked how they can articulate the disconnect between the cost of building housing and what is possible. Affordable Housing Development Manager Hawkinson thanked the Board for the discussion and stated that they will come back in a month to share the demographics. The Board asked that they include demographics on workforce in the data that is brought back. IV. ADJOURNMENT The meeting was adjourned at 8:56 a.m. Respectfully submitted, Scott Neal, Executive Director Page 7 of 34 d ITEM REPORT Date: February 27, 2025 Item Activity: Approve Meeting: Housing & Redevelopment Authority Agenda Number: 6.2 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: Resolution 2025-03: Authorizing Lease Extension with United States Postal Service Action Requested: Approve Resolution 2025-03 authorizing a lease extension with the United States Postal Service at 3940 Market Street (North Parking Garage). Information/Background: The City / HRA issues parking permits to allow employees at 50th and France to park in designated areas of the parking garages in excess of the posted time limits. This system encourages employees to park in designated places so that the short-term parking stalls remain available for customers. In 2021, a Parking Lease was executed with the Edina branch of the United States Postal Service (USPS) as a means to allow their employees to secure parking permits in the North Parking Garage. That lease will be extended for up to 2 more years. The base rate will increase by 3% annually. The lease may be terminated early with 60 days advance notice. Staff recommends approval of this Resolution. Resources/Financial Impacts: This lease will increase revenue collected to maintain and improve the public facilities in the 50th & France district. Compliance with the existing parking permit program also streamlines parking enforcement in the garages. Relationship to City Policies: Permit Parking Policy and related City Code provisions Supporting Documentation: 1. HRA Res 2025-03 lease extension with USPS 2. Lease Extension - Edina MN Parking 266314-005 (002) - to be signed Page 8 of 34 EDINA HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 2025-03 AUTHORIZING LEASE EXTENSION WITH UNITED STATES POSTAL SERVICE WHEREAS, on November 10th, 2021, the United States Postal Service (USPS) executed a multi-year lease for employee parking in the North Parking Ramp located at 3940 Market Street, and WHEREAS, the original lease expired in November 2024 and the USPS wishes to renew that lease for up to two years as documented in a Lease Extension. NOW THEREFORE BE IT RESOLVED that the Edina Housing and Redevelopment Authority approves the Lease Extension and authorizes the Chair and Executive Director to execute the documents to extend the lease for employee parking. Dated: February 27, 2025 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 February 27, 2025, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ________ day of ____________________, _________. _________________________________ Scott Neal, Executive Director Page 9 of 34 Lease Extension 1 Facility Name/Location This refers to the Lease accepted by the United States Postal Service, hereinafter called the Postal Service, under date of ____________, whereby there is leased to the Postal Service the above-described facility. WHEREAS, the Postal Service desires and Landlord is willing to extend said Lease as specified below; NOW THEREFORE, in consideration of the mutual covenants and agreements herein set forth, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: June 2020 1. RENTAL: The Postal Service will pay the Landlord an annual rental of: $25,956 beginning December 1, 2024 and ending November 30, 2025. $26,735 beginning December 1, 2025 and ending November 30, 2026. 2. The Postal Service shall have the option to extend this agreement for two (2) years with annual rental escalations of 3% per year by providing thirty (30) days written notice before expiration to the Landlord. 3. The parties agree that if the signature(s) of either Landlord or the Postal Service on this Lease or any amendments, addendums, assignments, or other records associated with this Lease is not an original but is an electronic signature, scanned signature or a digitally encrypted signature, then such electronic signature, scanned signature or digitally encrypted signature shall be as enforceable, valid and binding as, and the legal equivalent to, an authentic original wet signature penned manually by its signatory. The Postal Service may terminate this Agreement by giving 60 days written notice to the Landlord. In all other respects, the Lease shall remain the same and is hereby confirmed. To extend the terms and conditions of the said Lease, as the same may have been modified or amended, for a fixed term basis beginning 12/01/2024 and ending 11/30/2026 at an annual rental of: Lease: QU0000680356 Lease Extension No: 001EDINA NORTH PARKING RAMP (266314-005) 3940 MARKET ST, EDINA, MN 55424-1289 11/10/2021 Page 10 of 34 EXECUTED BY LANDLORD this ________ day of _______________________, ______. GOVERNMENTAL ENTITY By executing this Lease Amendment, Landlord certifies that Landlord is not a USPS employee or contract employee (or an immediate family member of either), or a business organization substantially owned or controlled by a USPS employee or contract employee (or an immediate family member of either). Name of Governmental Entity: _____________________________________________________________ __________________________________ _____________________________________ Name & Title Name & Title __________________________________ _____________________________________ Name & Title Name & Title __________________________________ _____________________________________ Name & Title Name & Title __________________________________ _____________________________________ Name & Title Name & Title Landlord’s Address: ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ Zip+4_______________ Landlord’s Telephone Number(s): ___________________________ __________________________________ Federal Tax Identification No.:______________________________________ _________________________________________ _________________________________________ Witness Witness a.Where the Landlord is a governmental entity or other municipal entity, the Lease must be accompanied by documentary evidence affirming the authority of the signatory(ies) to execute the Lease to bind the governmental entity or municipal entity for which he (or they) purports to act. b.Any notice to Landlord provided under this Lease or under any law or regulation must be in writing and submitted to Landlord at the address specified above, or at an address that Landlord has otherwise appropriately directed in writing. Any notice to the Postal Service provided under this Lease or under any law or regulation must be in writing and submitted to “Contracting Officer, U.S. Postal Service” at the address specified below, or at an address that the Postal Service has otherwise directed in writing. ACCEPTANCE BY THE POSTAL SERVICE Date: _______________ __________________________________ ____________________________________ Contracting Officer Signature of Contracting Officer _______________________________________________________________________________ Address of Contracting Officer EDINA, MN Western FSO 7500 E 53RD PL RM 1108, DENVER, CO 80266-9918 CITY OF EDINA Terrence P Brennan 4801 W 50TH ST XX-XXX5118 AUTHORITY EDINA HOUSING AND REDEV 2 Lease Extension CITY OF EDINA Signature Page leaseamd Gvt. Entity (June 2020) 55424-1330 (952) 826 - 0407 27th February 2025 / EDINA HOUSING AND REDEVELOPMENT AUTHORITY James Hovland, Chair Scott Neal, Executive DirectorJames Pierce, Secretary Page 11 of 34 d ITEM REPORT Date: February 27, 2025 Item Activity: Information Meeting: Housing & Redevelopment Authority Agenda Number: 7.1 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: Pentagon Village - Project Update Action Requested: For information purposes only; no action required. Information/Background: Staff will provide a brief update regarding the redevelopment projects at Pentagon Village and a request to amend the TIF Agreement. Resources/Financial Impacts: None Relationship to City Policies: Tax Increment Financing Policy Supporting Documentation: 1. Pentagon Village - Progress Update 2-27-2025 Page 12 of 34 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Summary: The developer has requested an Amendment to the TIF Redevelopment Agreement. City staff recommends not amending the Agreement at this time. No formal action is required at this time. Information / Background: In October 2018, the City & HRA entered into a Redevelopment Agreement with Hillcrest Properties and Solomon Real Estate dba Pentagon Village LLC. In June 2019, the developer completed the initial phase of construction, including the retail buildings, permanent roadways, parking garage, public plaza and utility infrastructure. The City subsequently issued three Pay-As-You-Go-TIF Notes that would allow partial reimbursement to the developer. The total principal value of the interest-bearing TIF Notes is $18.1 million. TIF Notes A & B are currently accruing interest and earning partial reimbursement based on the portions of Pentagon Village that have been completed. The completion requirements for TIF Note C have not been achieved and TIF Note C is currently not accruing interest and is not eligible for payments. To date, a total of $709,504 has been paid toward TIF Notes A & B. This amount is far below the projected amount that presumed a faster pace of completion. The financing package for large-scale multi-phase projects often change over time. Since 2018, the original TIF Redevelopment Agreement was amended three times to respond to the changing economic environment. Most recently in August 2021, the Agreement was amended to extend the development schedules due to the increased costs, uncertain market demand and investor reluctance during and immediately after the COVID-19 pandemic. The pandemic delayed the delivery of the hotel anticipated on Lot 2. Progress Update for 2024: This past year, the redevelopment of Lot 3 (Eddi Apartments) and Lot 4 (First Bank & Trust) were completed. The retail buildings also became fully occupied. These are all positive milestones for Pentagon Village. The map on the following page shows the location of the various elements included in the 12-acre Pentagon Village site. Date:February 27, 2025 To:Chair and Members of the Edina Housing & Redevelopment Authority From:Bill Neuendorf, Economic Development Manager Subject:Pentagon Village – Progress Update Page 13 of 34 Pentagon Village – Progress Update Staff Report Page 2 Construction of Lot 2 dual-brand hotel is stalled due to a legal dispute between the hotel owner/operator and the general contractor. This dispute has been ongoing since late 2023 and will likely hinder the construction of the anticipated hotel. Recently, the hotel owner has listed the vacant land for sale. The developer has continued to market the Lot 5 parcels to a variety of prospective users and builders. Unfortunately, none of those potential users has executed a contract to buy or lease the site. Lot 5 remains vacant and available to a future user. Developer Request: The developer recently asked staff to prepare an Amendment to grant an additional time extension in hopes of activating TIF Note C in the future. Page 14 of 34 Pentagon Village – Progress Update Staff Report Page 3 Staff Recommendation: Staff does not recommend an amendment to the deadlines applicable to Lot 2, Lot 5a or Lot 5b at this time. Without a potential project to analyze, the fiscal impact of Note C is difficult to predict. At the current pace, there may be insufficient incremental funds generated from the site to fully repay Notes A & B. The repayment source for Note C is not clear at this point in time. As a reminder, any shortfall in incremental taxes presents a risk to the developer only. Neither the City or the HRA is obligated to make any TIF Notes payments from sources other than incremental taxes generated from the Pentagon Village parcels. While an amendment might be considered in the future, staff recommends that any amendment be considered only after there is an active purchase agreement and/or a bona fide development proposal for the remaining vacant site(s). With a well-defined proposal, staff can analyze whether or not it is in the City’s best long-term interest to amend the TIF Redevelopment Agreement. Page 15 of 34 d ITEM REPORT Date: February 27, 2025 Item Activity: Discussion Meeting: Housing & Redevelopment Authority Agenda Number: 7.2 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: 5146 Eden Avenue - Solicitation of Proposals to Sell and Redevelop Land Action Requested: For discussion purposes only; no action required. Information/Background: Staff will present the final draft of the Request for Proposal (RFP) that is intended to be issued for the 5146 Eden Avenue site. This site is vacant and intended to be sold for redevelopment purposes. The RFP will be released in early March so that a new developer can be selected. Resources/Financial Impacts: None. Relationship to City Policies: NA Supporting Documentation: 1. Staff Report 5146 Eden Update 2-27-2025 2. Housing RFP 5146 Eden Ave - DRAFT 2-27-2025 Page 16 of 34 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Information / Background: Summary Based on input received from the HRA Board, City staff prepared a streamlined Request for Proposal (RFP) to solicit proposals from qualified and experienced developers. The draft RFP is attached for final review before it is issued to the real estate development community. No formal action is needed at this time. Background A new developer will be sought to purchase and redevelop the vacant 3-acre property at 5146 Eden Avenue. The Request for Proposal (RFP) document has been streamlined to eliminate the mandatory details that shaped prior proposals. More generalized language has been included to prioritize ownership housing and missing middle type house. The broader range is hoped to yield a variety of creative proposals. Confirming that the Property not needed for City Purposes Each City department was contacted to inquire whether they project a need to retain this land in the next few years. None of the City department leaders identified a need to retain the land. The Fire Department noted that they still intend to pursue a new Fire Station #3 in the next few years. Several potential sites have been identified with a preference to locate east of Highway 100. The vacant 5146 Eden site is #4 or #5 on the list of preferred locations. In order to better serve the community, the Fire Department is confident focusing on other locations at this time. They do not recommend retaining the 5146 Eden parcel at this time. Date:February 27, 2025 To:Chair and Commission Members of Edina HRA From:Bill Neuendorf, Economic Development Manager Subject:5146 Eden Avenue – Solicitation of Proposals to Sell and Redevelop Land Page 17 of 34 5146 Eden Avenue – Solicitation of Proposals to Sell and Redevelop Land Staff Report Page 2 General Timeline The timeline discussed in January still holds. First Quarter 2025 •Issue RFP •Confirm expiration of Jester Concepts contract •Transfer parcel to City prior to sale to private developer Second Quarter 2025 •Review responses •Identify finalists to interview •Select preferred developer •Execute Contract with preferred developer Third and Fourth Quarter 2025 •Developer to pursue zoning and preliminary site plan approvals using the City’s standard regulatory review process Second Quarter 2026 •Transfer ownership and begin construction •This might be able to be moved to 2025 if the zoning entitlements and private financing are secured with no delays. Next Steps The draft RFP is attached for final review before it is issued to the real estate development community. Final comments, suggestions or concerns are appreciated. # # # Page 18 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 1 EDINA HOUSING & REDEVELOPMENT AUTHORITY Request for Proposal Redevelopment Opportunity 5146 Eden Ave. Edina, MN 55436 INTRODUCTION The City of Edina and the Edina Housing and Redevelopment Authority (HRA) are seeking a creative and experienced developer(s) to construct new housing or mixed housing/commercial uses on a vacant 3-acre site in Edina’s Grandview District. This packet contains information to guide prospective developers as they prepare proposals to purchase and redevelop the site. The Edina HRA is open to reasonable offers that allow the preferred type of project to be built at the maximum land price to the City. The land will be sold in ‘as is’ condition subject to permanent easements for public outdoor areas and covenants for long-term affordability. Proposals are due by [May 1st, 2025] at 5:00 pm CST. Page 19 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 2 VISIONS FOR A VIBRANT NEIGHBORHOOD Several properties in the Grandview area were formerly used for industrial purposes. Over several decades, the neighborhood transitioned to a mixture of uses including office, retail, housing, institutional and civic. This trend is expected to continue when other sites transition. The City completed a community-based planning process to craft a long-term vision for the Grandview District. The resulting “Grandview Development Framework” established Seven Guiding Principles that are applied to new real estate projects. Key excerpts follow. Grandview Seven Guiding Principles 1) … create a vibrant and connected District that serves as a catalyst for high quality, integrated … development 2) …a neighborhood center with regional connections… 3) Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure … 4) … pursue logical increments of change… to [create] a more vibrant, walkable, functional, attractive, and life-filled place. 5) Organize parking … link community parking to public and private destinations … 6) Improve movement within and access to the District for people of all ages … 7) Create an identity and unique sense of place that incorporates natural spaces … Page 20 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 3 The primary goals of the Grandview Development Framework include: • Support the “go to” auto-oriented uses (like grocery store, coffee shop and funeral home) while encouraging more “stay at” pedestrian-oriented uses (like new housing, new restaurants and new public space. • Recognize and respond to the need for a range of housing types. • Emphasize a pedestrian-oriented sense of place that produces an appropriate scale and function with a high degree of walkability. • Support economic growth and community stability by providing accessible and efficient connections between home, school, work, recreation and business destinations. Over the years, the Edina HRA has explored a variety of programs for the site. A new developer is sought for the 5146 site with the intention of breaking ground in 2026. GENERAL SITE INFORMATION • Approximately 3-acre vacant site • Parcel ID #s 28-117-21-31-0014, -0015 and -0016 • Northern edge of the site has been improved with public sidewalk and pedestrian bridge. These improvements will remain and will not be sold. • Previous storage/repair facility demolished in 2013 • Environmental studies identified remains of hydraulic fluid in limited areas of the southern portion of the site; other contaminants remediated in 2013 • Approx 34 ft elevation change from north to south property boundaries • Surrounded by commercial, multi-family and institutional users • Adjacent to Canadian Pacific Kansas City railroad tracks (aka Dan Patch line) • Adjacent to public parking garage • Easy access to Highway 100 • Property currently owned by the Edina Housing & Redevelopment Authority (HRA); title will be transferred to City of Edina before purchase agreement executed with developer • Land sold in ‘as is’ condition. • Supplemental information is available online at www.edinamn.gov. Page 21 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 4 DESIRED TYPE OF REDEVELOPMENT Proposals should be primarily focused on new residential development or a combination of uses that create a vibrant destination for residents, workers and guests. Proposals for industrial uses will not be accepted at this location. The proposal must complement the overall Grandview District taking the general vision expressed in the Guiding Principles into consideration. Recognize that the Development Framework establishes only a general vision and is not considered a mandatory blueprint. Ownership units preferred In the past decade, thousands of new rental apartment units have been constructed in Edina. At this location, there is a strong preference for other types of housing, especially ownership units like townhouses, condominiums or cooperatives. Proposals with primarily luxury and market- rate rental housing will be considered but are a low priority at this location. Creative types of housing proposals are preferred and encouraged. Examples include (but are not limited to): missing middle townhouses, mixed-income, co-housing flats, courtyard buildings, passive house, smaller-scale apartments or condominium building(s), car-share program, limited equity models, community land trust model. Modest Living at a Range of Prices In this location, there is a preference for modest living arrangements to keep some of the unit prices low. Preference will be given to proposals that are skewed toward affordability instead of luxury while still being responsive to the marketplace. Commercial uses A combination of housing and commercial uses is desirable, but not mandatory. Jester Concepts was formerly under contract to develop a new restaurant with indoor and outdoor seating on a portion of the site. Although the contract has expired, Jester still has strong interest to create a new restaurant in a portion of the site. Proposals that include Jester as a partner will be considered on the same basis as other potential commercial partners. Walkable and Connected The proposed site plan must create a walkable environment that provides convenient access routes for pedestrians and bicyclists to travel to, from and within the site. Scale and Massing While height and density are possible on this site, the City does not strive to maximize the height or density at this location. The public streets closest to the Eden/Arcadia intersection are preferred to be lined with buildings no more than 2-3 stories in height. Additional height is Page 22 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 5 acceptable, and preferred in the western and northern portions of the site to avoid overwhelming the public streets. The layout and massing must recognize the importance of the new sidewalk and pedestrian bridge at the northern edge of the site. These elements must remain welcoming to guests and visitors. A public plaza should be included on the site to provide an outdoor space for residents, guests and the public. The plaza is anticipated to be privately owned and maintained and subject to a public easement. There is no mandatory size or placement of this plaza. Parking Private parking should be included on site to meet the market needs of the proposed project. The adjacent Grandview Parking Garage is owned by the City and available as a shared amenity to all surrounding properties. This public facility is frequently underutilized and has some availability during daytime hours (M-F) and is fully available on weekday evenings and weekends. This public garage is available for the limited shared use by guests, workers and customers. ZONING AND PLANNING EXPECTATIONS The site is currently zoned Planned Industrial District (PID). In 2022, the site secured preliminary Planned Unit Development (PUD) rezoning that included a senior cooperative, full- service restaurant and public park. That PUD was not finalized. None of the pre-established zoning designations in Edina’s Zoning Code are suitable to achieve the development goals envisioned in the Grandview Development Framework. Thus, the pending PUD zoning is anticipated to be modified (or replaced) to reflect the preferred developers proposal. A brief and high-level summary of zoning regulations follows. Developers are strongly encouraged to conduct a full code review as part of their submission. Future Land Use Guidance (Comp Plan pg 3-30) Guided as “Mixed Use Center” - Primary uses: retail, office, service, multi-family residential and institutional - Vertical mixed use is encouraged - Create new pedestrian and streetscape amenities - Encourage structured parking - Buildings may “step down” in height from intersections Residential Density (Comp Plan, pg 3-30) Guided for 20 to 100 dwelling units per acre depending on layout; acceptable density level determined using the PUD rezoning process; higher density level requires greater degrees of affordability Floor to Area Ratio Varies by land use, typically not applicable to multi-family residential Page 23 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 6 Building Height (App. A Height Overlay District) Zoned for 4 stories or 48 ft based on HOD-4 overlay; could be modified using PUD rezoning process; height of existing adjacent Jerry’s office building typically recognized as acceptable limit for most projects Minimum Parking (Sec. 36-1311 to 36- 1326) Varies by land use; minimum requirements can be adjusted if justified by an independent Parking and Traffic Study as part of the PUD rezoning process Building Lot Coverage (Sec. 36-525) Varies by land use; can be adjusted using the PUD rezoning process provided that alternate provisions for storm water and landscaping are provided Setback Varies by land use and building height; at least 16-22 feet recommended from curb along Eden and Arcadia; sufficient width to accommodate fire department operations on other sides Sidewalks (Sec 36-1274) Complete sidewalks required along Eden and Arcadia; 5 ft minimum with 5 ft landscaped boulevard Fire Department Access An alley or other access route is required for Fire Department access to the full site Architectural Design Not regulated; a variety of styles and massing including articulation and step backs is preferred Exterior Materials (Sec 36-618(11)) Not regulated; natural materials preferred, a variety of materials are acceptable using the PUD rezoning process Affordability At least 10% of all residential units must be priced as affordable to moderate-income households; a greater number of affordable units is preferred APPLICABLE CODES, STANDARDS AND POLICIES All proposals are expected to comply with applicable codes and policies, including: • MN State Building Code • MN Accessibility Code • Americans with Disabilities Act (ADA) • Public Right-of-Way Accessibility Guidelines (PROWAG) • Edina Zoning Code • Edina Affordable Housing Policy (2022, as revised) • Edina Sustainable Buildings Policy (2022, as revised) • Edina Grandview Development Framework • Edina Comprehensive Plan • Grandview Maintenance Assessment District Page 24 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 7 ANTICIPATED SELECTION PROCESS The Edina HRA anticipates a two-step selection process. Step 1: All proposals that are responsive to this RFP and received prior to the deadline will be evaluated by City staff and forwarded to the HRA Board and/or City Council members for consideration. Proposals will be evaluated on their (1) professional capabilities to complete the project, (2) compatibility with preferred project types and (3) land purchase price. The City Officials will determine which responders, if any, will be invited to interview. Step 2: A limited number of proposals will be invited to refine their proposal and present a more detailed proposal directly to the City Officials (in a public meeting) After conclusion of the presentations, the City Officials will re-evaluate the finalists as they select the preferred developer. The announcement of the preferred developer will take place at a subsequent public meeting and will include a Letter of Intent or similar document to identify the terms. After the preferred developer is announced, the City Attorney will prepare and present a Contract for Private Development or similar document that identifies the terms of the sale, the responsibilities and expectations of buyer and seller and deadlines to proceed. After execution of the Contract, the preferred developer will proceed with the City’s standard development review process. This process includes a series of public meetings (sketch plan, preliminary and final) with the Planning Commission and City Council to consider rezoning and site plan approvals. SUBMITTAL REQUIREMENTS AND DEADLINE Motivated developers are encouraged to submit a proposal for consideration. Proposals must follow the general format attached. Send proposals to the City of Edina to the attention of: Bill Neuendorf, Economic Development Manager BNeuendorf@EdinaMN.gov Proposals must be received by the City no later than [May 1st, 2025] at 5:00 pm CST. QUESTIONS Questions can be directed to Bill Neuendorf, Economic Development Manager at BNeuendorf@EdinaMN.gov for written response no later than [Monday March 31st, 2025 at 5:00 pm CST]. Responses to questions received by the deadline will be posted to the website. Page 25 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 8 GENERAL TERMS This is a request for proposal and in no way obligates the responder to enter into a contract with the City of Edina or the Edina HRA. Nor does this request obligate the City of Edina or the Edina HRA to enter into a contract with any entity that responds, nor does it limit or restrict the City of Edina or the Edina HRA’s right to enter into a contract with any entity that does not respond to this request. In its sole discretion, the City of Edina or the Edina HRA may pursue discussions with one or more entities responding to this request, or none at all. The City of Edina and the Edina HRA further reserves the right, in its sole discretion, to cancel this Request for Proposal at any time for any reason. All costs associated with responding to this request will be solely at the responder’s expense. Page 26 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 9 5146 Eden Avenue PROPOSAL SUMMARY Use this format to submit your proposal. Attach additional pages as appropriate. Brevity is preferred for the first round. Additional detail will be requested from selected finalists. Failure to provide complete information is grounds for the City to reject the proposal. Contact Information Name of Development Company Contact Name Phone Number and Email Website Name of Development Partner, if any Years of relevant development experience Examples of similar completed projects by developer(s) (project name and location) MBE, WBE, SBE,or VBE status of developer(s) and partners, if applicable (2a) Brief Description of Proposed Project Attach a brief description of the proposed project, including unique characteristics or amenities. Two single sided pages maximum. (2b) Conceptual Site Plan Attach a conceptual site plan that generally depicts the site layout and massing envisioned for the site. One page minimum; three pages maximum. Page 27 of 34 Edina Housing & Redevelopment Authority Issued DATE___, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 10 (2c) Anticipated Unit Count (fill in approx. # units of each type) Total Units Affordable Attainable Market Rate < 50% AMI 50% AMI 60% AMI 80% AMI 100% AMI 120% AMI > 120% AMI Townhouse, for-sale Townhouse, rental Cooperative Condominium Rental Apartment, Senior Rental Apartment, All ages Other, A Other, B (3a) Anticipated Land Purchase Price Anticipated Land Price per Unit Anticipated # of Units Sub-Total Townhouse building(s) Multi-family building(s) Other Estimated Total Land Purchase Price = (3b) Conditions or Contingencies that impact purchase price or land closing (3c) Describe the type of debt and equity funding anticipated Submitted by (name & date): END Page 28 of 34 d ITEM REPORT Date: February 27, 2025 Item Activity: Information Meeting: Housing & Redevelopment Authority Agenda Number: 8.1 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: 7001 France Avenue - Project Update Action Requested: For informational purposes only, no action required. Information/Background: Staff will provide an update on the challenges which hinder further progress on the site and will summarize an alternative approach that is being evaluated. Resources/Financial Impacts: None Relationship to City Policies: Tax Increment Financing Policy Supporting Documentation: 1. 7001 France Ave - Update 2-27-2025 Page 29 of 34 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Summary: The developers have requested that the HRA consider alternative strategies to finance the construction of the office building and parking garage. Staff is currently evaluating this request. This update is provided for informational purposes. No formal action is required at this time. Information / Background: In June 2022, the HRA and City entered into TIF Redevelopment Agreements with Orion Investments and Mortenson Development dba MDI France Ave, LLC to redevelop the aging commercial buildings at 7001 France Avenue. This 5.8-acre site was previously occupied by an outdated branch bank and outdated office building. Although the initial relocation of the US Bank facility was completed successfully, the subsequent development of Lot A (new residential high rise) and Lots B/C (new office and new parking garage), has been delayed due to hesitancy in the capital markets that typically provide financing for these types of large scale projects. After the new branch bank was opened for business, the developers continued to move forward and cleared the site to remove the obsolete and vacant buildings. Despite their efforts, construction of Lots A-B-C has not yet begun. Ongoing Hesitancy in Capital Markets The developers at Orion and Mortenson continue to pursue private financing and other creative solutions in spite of increasing construction costs. There appears to be solid demand for new Class A office and retail space at this location, but construction financing continues to be a barrier. There is also good demand for new luxury living, but increased costs and increased interest rates continue to hinder construction. At this time, both Orion and Mortenson continue to pursue the four phase project for which the site was zoned and granted site plan approvals (see attached layout on following page). While the pace of construction has been slower than expected, the site plan still appears to be viable and desirable. Date:February 27, 2025 To:Chair and Members of the Edina Housing & Redevelopment Authority From:Bill Neuendorf, Economic Development Manager Subject:7001 France Avenue – Update Page 30 of 34 7001 France Ave – Update Staff Report Page 2 An Alternative Path Forward City staff met with the developers to better understand the challenges and to discuss possible strategies that the HRA and City might consider to ‘jump start’ the next phase of construction. One possible strategy would be for the City/HRA to take a more active role in the financing and/or construction of the Lot C parking garage. This facility was initially intended to be built and owned by the developer while subject to a permanent public parking easement. Although the facility has been sized to accommodate a fully occupied office/retail building, it will also be available for general public parking during evenings and weekends. Some of the parking stalls would also be available to the general public on a first-come, first-served basis. Considering its public use, the facility could qualify for taxable or tax- exempt bond financing that could creates more attractive financing conditions for the Lot B office building. A shift in the financing structure might be sufficient to restore the momentum at this site. However, further analysis is needed to confirm this objective. While Edina’s TIF policy prefers the use of Pay-as-you-go TIF Notes (issued to the developer), other applications of TIF financing are allowed by Minnesota statute, are used in other communities and have been used by Edina in the past to finance parking at 50th & France and redevelopment at Centennial Lakes. Page 31 of 34 7001 France Ave – Update Staff Report Page 3 More Analysis Needed The initial conversation has identified at least one potential alternative: •Construct the parking garage in two phases to reduce initial costs and better understand future demand. •Developers could consider shared parking between the users of Site A (new residential) and Site B (new office/retail). •By using taxable or tax-exempt lease/revenue bonds (or similar) in lieu of a traditional mortgage, the debt could shift away from the Lot B office onto the Lot C parking. •Instead of issuing a TIF Note that pledges reimbursement to the developer, the City could use future incremental property taxes to make payments on the bond. •Contractual agreements between the City, HRA and developer could mitigate financial risk to the City/HRA in case there is a shortfall in the amount of incremental taxes generated on the site. •Operating agreements between the City, HRA and developer could ensure that day-to- day costs of operating the parking garage are paid by the users. •Application of Chapter 429 or 459 special assessments could be applied to the properties that use the public parking garage in the future when large-scale repairs or improvements are necessary. While this type of approach has potential, more study is needed to ensure that the financing and legal structure abides by applicable Minnesota statutes, is attractive in the private market-place, has strong possibility to attract private investors to the site and mitigates risk to the City and HRA. Next Steps: In the weeks ahead, staff intends to work with the HRA’s legal and financial advisors to look deeper into this type of alternate approach. The cost of this work will be borne by the developers. If a viable path is identified, we intend to present a Term Sheet that outlines, the general financing and ownership structure, overall benefits and potential risks. If the HRA is supportive of the arrangement described in the Term Sheet, staff will prepare an amendment to the Redevelopment Agreement for formal consideration by the HRA and City. This amendment would then be relied upon by the developer as they pursue private investors for Site A residential and Site B office. We will provide an update in late March or early April. No action is needed at this time. # # # Page 32 of 34 d ITEM REPORT Date: February 27, 2025 Item Activity: Information Meeting: Housing & Redevelopment Authority Agenda Number: 8.2 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Other Department: Community Development Item Title: Special Legislation for TIF in Edina - Update Action Requested: For informational purposes only; no action required. Information/Background: Bills have been introduced in the Minnesota House and Senate to pursue additional flexibility for the use of Tax Increment Financing (TIF) at 70th & France and 72nd & France #2. Edina was one of several cities that sought this type of flexibility. The proposed legislation uses the same language that passed out from the House and Senate Committees in 2024. Due to a lack of time in the 2024 legislative session, the state legislators passed only a bare minium tax bill that left out special requests and the TIF related bills from all cities. The special legislation is being requested again in 2025 due to delays in the capital financing markets that prevented full-scale construction at both 7001 France Ave. and 7200-7250 France Ave from occurring the past three years. Such legislation is in the City's best interest to create a viable financing path to secure the $250+ million private investment at 70th & France and the $160+ million private investment at 72nd and France. Without the requested modifications, the developers and City may not be able to achieve the redevelopment goals identified in the TIF Financing Plans for these sites. The legislation proposes two types of changes for both TIF Districts (both subject to local review): 1) TIF commitments must typically occur within 5-years of the certification of the District. The delays in the capital markets have already used up 2-3 of the available 5-years. This commitment period is requested to be extended to 10 years. This change gives the developers and City additional time to lock in private financing and any public financing related to public infrastructure (ie possible underpass). This request does not change the amount of financing pledged to support either private project. 2) When TIF is necessary, Edina strives to create TIF Districts that collect incremental taxes for the shortest necessary time period. Based on increasing costs, the time periods originally approved may no longer be sufficient. The requested legislation would provide the flexibility to extend the 70th & France Renewal TIF District from 15 to 25 years. It would also create flexibility to extend the 72nd & France #2 Redevelopment TIF District from 25 to 30-years. Approval of the special legislation gives the City options; it does not force its hand. In Minnesota, state legislation establishes the basic limitations on the use of tax increment financing but the local authorities determine when and how to apply those provisions. If the special legislation is approved, a great deal of public review and process will be required in the future. • In order to extend the 5-year deadline to 10-years (#1 above), the TIF Financing Plans would need to be amended and presented in a Public Hearing. Approvals from the Edina HRA and Page 33 of 34 Edina City Council would be required. • If it is necessary to extend the duration of the TIF Districts by an extra 5-10 years (#2 above), the TIF Financing Plans would also need to be amended using the Public Hearing process. For this type of change, approvals from the Edina HRA, Edina City Council, Edina #273 Public School Board, and Hennepin County Board of Commissioners would be required. Staff will continue to monitor the House and Senate bills. An update will be provided at the conclusion of the 2025 legislative session. No HRA action is required at this time. Resources/Financial Impacts: None Relationship to City Policies: Tax Increment Financing Policy Supporting Documentation: None Page 34 of 34