HomeMy WebLinkAbout2025-04-24 HRA Packet
Meeting location:
Edina City Hall
Council Chambers
4801 W. 50th St.
Edina, MN
Housing & Redevelopment Authority Meeting Agenda
Thursday, April 24, 2025
7:30 AM
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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.
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. April 10, 2025 Minutes
7. Reports/Recommendations: (Favorable vote of majority of Commissioners
present to approve except where noted)
Page 1 of 39
7.1. 2023 Affordable Housing Compliance Report - Update
7.2. Sale and Redevelopment of Property at 5146 Eden Avenue - Update
8. Executive Director Comments
8.1. Preparation for Future Discussion about Tax Increment Financing
9. HRA Member Comments
10. Adjournment
Page 2 of 39
BOARD & COMMISSION
ITEM REPORT
Date: April 24, 2025 Item Activity: Approve
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.1
Prepared By: Liz Olson, Administrative Support
Specialist
Item Type: Minutes Department: Community Development
Item Title: April 10, 2025 Minutes
Action Requested:
Approve April 10, 2025 minutes.
Information/Background:
Supporting Documentation:
1. Minutes from April 10, 2025
Page 3 of 39
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 10, 2025
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 7:32 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 Jackson, seconded by Commissioner Pierce, 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 Jackson, seconded by Commissioner Pierce, approving the
consent agenda as presented:
VI.A. DRAFT MINUTES OF REGULAR MEETING OF MARCH 27, 2025
VI.B. AMEND LOAN AGREEMENT WITH BUHL 3906, LLC
Ayes: Jackson, Pierce, Risser, and Hovland
Motion carried.
VII. REPORTS AND RECOMMENDATIONS
VII.A. AMEND LOAN AGREEMENT WITH EDINA CHAMBER OF COMMERCE–
APPROVED
Economic Development Manager Neuendorf presented information regarding the background
information regarding the requested amendment. Economic Development Manager Neuendorf
stated that the Chamber still occupies the lab space, and a loan of $650,000 was issued, and
repayment began in early 2024. He stated that the Chamber of Commerce is looking for a
modification to the loan repayment plan to extend the term of the loan from 7 years to 15 years.
The Board expressed concerns regarding where the loan repayment will be coming from.
Shelly Loberg, Edina Chamber of Commerce, stated that they are not able to use lodging tax funding
for the repayment of the loan. Ms. Loberg stated that the lab did not generate revenue to make rent
payments.
Page 4 of 39
Minutes/HRA/April 10, 2025
Page 2
The Board asked questions regarding Explore Edina, how to welcome entrepreneurs without the
innovation lab, the reason behind the increase from 7 years to 25 years, and how to ensure
repayment.
Economic Development Manager Neuendorf gave information on what would occur if the loan
agreement were not amended.
Shelly Loberg, Edina Chamber of Commerce, stated that they are operating at maximum capacity,
but they are working to turn their space into more of a community space and do outreach to make
some added income.
Paul Mooty, Edina Chamber of Commerce, stated that they believe that the budget they have is
achievable and they can pay this debt back.
Mark Jessen, Edina Chamber of Commerce, stated that they looked at 3 different spots, but landed
on the E because it is easy access, abundant parking, technological reasons, among other things.
The Board expressed concerns regarding the position the City is in due to this situation.
Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the
second amendment to the drawdown loan agreement with Edina Chamber of
Commerce.
Ayes: Jackson, Pierce, and Hovland
Nays: Risser
Motion carried.
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 8:17 a.m.
Ayes: Jackson, Pierce, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Page 5 of 39
d
ITEM REPORT
Date: April 24, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 7.1
Prepared By: Stephanie Hawkinson, Affordable Housing
Development Manager
Item Type: Report & Recommendation Department: Community Development
Item Title: 2023 Affordable Housing Compliance Report - Update
Action Requested:
No action required.
Information/Background:
TABLED FROM MARCH 27, 2025: In December 2018, the City entered into a service contract with
Affordable Housing Connections (AHC) to monitor all market rate developments that contain
affordable units. The compliance monitoring is to confirm and verify the following:
• The approved number of units have rents that are deemed affordable per the agreement
made with the City (with rents at the 50% and/or 60% Area Median Income levels); and
• The affordable units are being rented to households who are income-qualified.
On December 19, 2024, the HRA received a compliance report on the compliance status of
affordable housing units within market rate developments. At that time, two developments were in
full compliance, three had open deficiencies (meaning some paperwork was missing), and two were
not compliant. Of the latter, Aria has not been in compliance since the City began reviewing. The
development complies with the words in the agreement that was put in place at the time of approval,
but not with the intent of the program. Therefore, we have removed this development from our list
of affordable developments. No City financing was used to support this development.
There are limits in what the City can do when a development is non-compliant. For developments
that receive on-going TIF payments, the City can withhold payments until the development is brought
into compliance. For developments where the affordable housing requirement is mentioned only in
the SIPA, previous Commissioners determined that there was no recourse, which was supported by
the City attorney. In newer developments, a Declaration of Restrictive Covenants is recorded on the
land, regardless of whether the City provided financial assistance.
Since December, Staff and AHC have been working with the leasing managers of the various buildings
to bring them into full compliance. With high levels of turn-over in the property management
industry, AHC must retrain new staff on the compliance requirements throughout the year.
Resources/Financial Impacts:
The City has a contract with Affordable Housing Connections. The fee for compliance review is
included the Redevelopment and Loan Agreements with the developers.
Relationship to City Policies:
Page 6 of 39
Confirming and verifying that the market-rate developments that include affordable units comply with
the New Multihousing Affordable Housing Policy is supported by said policy and the Comprehensive
Plan to create and support affordable housing.
Budget Pillar:
Strong Foundation
Reliable Service
Livable City
Better Together
Values Impact:
Equity
Providing affordable housing serves to make Edina more accessible to
households who work in Edina, for households who are living in market
rate housing and are housing cost burdened, and for households who
want to make Edina their home.
Stewardship
As the creation of affordable housing is one variable in determining
whether a development is approved either a zoning request and/or
financial assistance, it is incumbent upon the City to confirm and verify
that the affordable units are indeed affordable and leased to tenants
who qualify for affordable housing.
Supporting Documentation:
1. Staff Report
Page 7 of 39
March 27, 2025
Chair and Members of the Edina Housing and Redevelopment Authority
Stephanie Hawkinson, Affordable Housing Development Manager
2023 Affordable Housing Compliance Report - UPDATE
Information / Background:
On December 19, 2024 the HRA received a report regarding the compliance status of market rate
apartment buildings that include affordable units per the New Multi-Family Affordable Housing Policy. The
report pertained to calendar year 2023. At the time the report was drafted, out of seven market rate
apartments that include affordable units, two were in full compliance, three had some, and the remaining
two had multiple issues that made them noncompliant. As monitoring of the buildings is on-going, the
compliance status can change throughout the year as updates and corrections are made.
Of these seven properties, three have agreements that pre-date the New Multifamily Affordable Housing
Policy: Aria, Aurora and Millenium. These three buildings did not receive any financial assistance from the
City, rather the owners/developers agreed to include affordable units as a condition of their land use
approval.
Compliance Monitoring
The City engaged Affordable Housing Connections (“AHC”) to serve at the City’s compliance officer.
Compliance monitoring is to confirm and verify the following:
Year
Approved Development
#
Units
#
Affordable
TIF
Financed
Affordability
Period
2012 Aurora on France/6500 France 182 10 No 15-Years
2015 Aria*184 8 No 15-years
2015 Millennium/3250 66th Ave W 227 11 No 20-years
2017 Nolan Mains/Market Street 100 10 Yes 15-years
2017 Avidor/5220 Eden 165 18 No 15-years
2018 The Lorient/Orion 4500 France LLC 45 3 Yes 15-years
2021 Maison Green/4917 Eden Avenue 196 20 Yes 21-years
Page 8 of 39
STAFF REPORT Page 2
1. The approved number of units have rents that are deemed affordable per the agreement made with
the City (with rents at the 50% and/or 60% Area Median Income levels); and
2. The affordable units are being rented to households who are income qualified.
In calendar year 2024, five 2023 compliance reports and 47 tenant files were reviewed for compliance (Aria
will not share tenant files, and Aurora uses Elderly Waiver rental assistance so is monitored by the State).
AHC staff train property managers and leasing agents on how to determine household income and to
review the leases to determine the gross rent charged. To accurately determine income compliance there
are forms and worksheets that need to be completed to support eligibility at move-in and annually
thereafter. As income can come from multiple sources in addition to traditional wages, the forms and
worksheets are necessary. Resident rent ledgers are reviewed to determine rent compliance and determine
what bills and fees, if any, are charged to the tenants. Annually, property managers are to provide the
compliance officer with files for review. In reality, the compliance office meets with the property managers
throughout the year as often the managers and leasing agents of market rate developments are unaware of
the affordable housing requirements.
Frequent management turnover continues to present challenges in effectively applying and communicating
program requirements. Clear coordination between management staff and both prospective and current
tenants is critical for maintaining compliance. To support ongoing compliance efforts, developing an on-
demand training resource or a step-by-step guide for qualifying households may be a valuable tool for site
staff to reference as needed.
Status in December 2024:
Compliant Open Deficiencies Noncompliant
1. Aurora
2. Nolan Mains
1. Avidor
2. Millenium
3. The Lorient
1. Aria
2. Maison Green
Reasons for Non-Compliance:
The Avidor: Required income certifications were not completed. There was a management turnover, and
this requirement was not communicated with the new managers.
Millenium: Of the 11 affordable units, 8 of the files were in good condition. For the remaining three units
there were questions with the files: clarification on student status for one unit, and missing third party
income verification for the other two.
The Lorient: The tenant files lacked clarity on utility responsibility. The Utility Allowance Worksheet states
tenants are responsible for heating natural gas, cooking electricity, and other electricity. However, the
Addendum to the Apartment Lease Utilities Apportionment Agreement in the tenant files suggests tenants
may also be responsible for water, sewer, heat, waste removal, and a monthly administrative charge.
Clarification and/or corrections were needed to address these inconsistencies.
Page 9 of 39
STAFF REPORT Page 3
Maison Green: This was the first year the property was being reviewed. During the year there were
property management staffing changes with former staff not training replacement staff on compliance
requirements. Therefore, at the time of review there were multiple issues and need for clarification,
specifically:
•Utility responsibility. Some leases indicated owners paid utilities, other leases stated it was the
tenant responsibility. If the tenants paid the utilities, the rents needed to be adjusted accordingly.
•Additional fees: There was a lack of constancy and clarity on additional fees. If the fees are
required, the rents needed to be adjusted accordingly.
•Incomplete files: Files for two units were missing. Further, household questionnaires, and
employment verification were missing in others.
To get into compliance, the Maison Green’s owner or property management team needed to address the
following:
•Clarify utility responsibilities and the application of additional fees.
•Submit complete tenant files for all 20 affordable units, including all missing income verifications and
clarifications.
•Resolve discrepancies in income calculations and documentation.
•Review and correct any units that may exceed income and rent limits.
When a property has opened deficiencies or is noncompliant City staff and AHC work with property
management to get them to comply. We do not simply accept their noncompliance. For example, a
building may be noncompliant because rent, plus utilities, plus mandatory fees may exceed the gross rent
limit. Therefore, we direct management to reduce the rent which has resulted in lease amendments and
repayments to the tenants. In other cases, certain paperwork related to household income may be missing
at the time the files are reviewed. AHC informs management of the missing information, and management
works to submit. The building then becomes compliant.
Current Status (March 20, 2025)
Continuing since December, both the AHC compliance officer and City staff have been working with the
properties to remedy their deficiencies to bring them into compliance.
Compliant Open Deficiencies
1. Aurora
2. Nolan Mains
3. The Lorient
4. Millenium
1. Avidor
2. Maison Green
Avidor: Tenant files remain incomplete, lacking third-party income verification and/or source documents for
household incomes as required every three years throughout the project’s affordability period. AHC has
notified management of this deficiency. The Owner/Owner Agent is required to promptly provide
documentation supporting the correction of these deficiencies to ensure compliance. All required
Page 10 of 39
STAFF REPORT Page 4
documentation must be submitted no later than April 21, 2025. This year Avidor experienced property
management turn-over which has contributed to these delinquencies.
Maison Green: Although the files have improved significantly, there still remains a lack of clarity on income
as discrepancies remain between household questionnaires and source documentation, which need to be
corrected. Further, some leases also still show additional fees that are not allowed to be placed on the
affordable units per the Guide. Management has been cooperative throughout the process and has made
significant improvements in documenting household eligibility. On March 20, 2025, AHC issued the Initial
Compliance Review letter and Tenant File Review forms, summarizing findings for all 20 reviewed files.
Management has until April 5, 2025, to address or correct any identified non-compliance issues.
Current Recourse for Noncompliance
With the early developments (Avidor, Aria, Millenium and Aurora) there were little written expectations of
how the properties would deliver the affordable units and how the City would confirm that the affordable
units were serving tenants who needed them. Negotiations were made in good faith, yet these initial
buildings were approved prior to the development of the Affordable Housing Policy Guide (“Guide”) which
defines program requirements and how they are achieved. Each development also has a unique regulatory
agreement, making compliance monitoring a challenge. For Aurora, the requirement to provide affordable
units was only stated in the Resolution approving final rezoning: “Affordable housing units shall be 10% (10
units) of the assisted and independent units.” There is no definition for either rent or income. With each
successive development, the requirements have become increasingly defined in the Development
Agreements with the Guide included as an attachment. Yet even without the Guide in place at the time of
approval, the owners/agents of Millenium, Avidor and Aurora have worked diligently to comply with the
affordability requirements now in place. When the Millenium changed ownership, the new owners agreed
to a more robust agreement to secure these units and have worked cooperatively with AHC and Edina staff.
The City cannot fine or otherwise punish owners who are adhering to the executed agreements. Nor does
the City have the authority to fine properties that are not in full compliance where the requirement to
include affordable units is embodied in the Site Improvement Performance Agreement (SIPA). A fine, or
“Liquidated damages” need to be closely tied to the actual financial harm imposed, which would be
challenging to prove for developments that did not receive financial support from the City. The only
recourse currently in place is withholding TIF payments, to the owners who received TIF, until their
properties comply. Therefore, staff and AHC continue to work with all the properties to get them to
comply for the benefit of the renters who need the affordable units.
The HRA may want to consider having rental licenses tied to compliance for future developments.
*Aria
The owners of Aria, the Doran Companies, are steadfast in maintaining their compliance per the agreement
that was executed at the time of approval. In 2022 the owners communicated with the HRA that they are
technically adhering to the written agreement that was put in place when the development was approved,
but not with the intent as was clarified by the HRA on December 12, 2020. At that time the
Page 11 of 39
STAFF REPORT Page 5
Commissioners endorsed the definition of “rent” to mean the full cost for living in a unit – rent plus utilities
plus any other required fees. The City acknowledges Doran Companies willingness to provide affordable
units, and Aria is rent compliant, but the development is not technically affordable as tenants must pay
utilities, trash collection and other fees in addition to rent. Doran is complying with the written agreement,
but not with the intended spirit of the agreement. As intent cannot be confirmed nor verified, Doran
Companies is complying with the form of agreement that was in place at the time. Nonetheless, Aria has
been removed from the on-line map of affordable places to live and will not be included in this annual report
moving forward.
Page 12 of 39
d
ITEM REPORT
Date: April 24, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 7.2
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Report & Recommendation Department: Community Development
Item Title: Sale and Redevelopment of Property at 5146 Eden Avenue - Update
Action Requested:
No action required; for information and discussion purposes only.
Information/Background:
On March 3, 2025, the City released a Request for Proposal to solicit proposals to purchase and
develop the 3-acre vacant property located at 5146 Eden Avenue. A copy of the RFP is attached. The
RFP was forwarded to dozens of prospective developers and promoted in local real estate
publications.
Proposals were due Monday April 21, 2025.
Staff will present a brief summary of the proposals received. Due to the short timeframe between
submission deadline and the HRA Board meeting, a full analysis will not be available and the summary
will not be distributed in advance. The summary is intended for information purposes only.
Formal discussion of the proposals is recommended to occur in a future closed session. Selection of
the preferred buyer/developer will occur in a future meeting that is open to the public.
Resources/Financial Impacts:
NA
Relationship to City Policies:
Comprehensive Plan, Grandview Development Framework
Supporting Documentation:
1. Housing RFP 5146 Eden Ave March 2025
2. 5146 Eden - staff report summary and next steps 4-24-2025
Page 13 of 39
Edina Housing & Redevelopment Authority Issued March 3, 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 mixed housing/commercial project 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. Teams of developers are also welcome.
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 of
some of the new housing units.
Proposals are due by Monday April 21st, 2025 at 5:00 pm CST.
Page 14 of 39
Edina Housing & Redevelopment Authority Issued March 3, 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 15 of 39
Edina Housing & Redevelopment Authority Issued March 3, 2025
Redevelopment Opportunity – 5146 Eden Ave Page 3
The primary outcomes 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 on the site was 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 and from Highway 100
• Currently zoned for industrial and guided for mixed uses
• Property is 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 16 of 39
Edina Housing & Redevelopment Authority Issued March 3, 2025
Redevelopment Opportunity – 5146 Eden Ave Page 4
DESIRED TYPE OF REDEVELOPMENT
Proposals should be primarily focused on new mixed use or residential development that
creates 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, attainable, affordable, 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 and
attainability instead of luxury while still being responsive to the marketplace.
Commercial uses
A combination of housing and commercial uses is strongly preferred, 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 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 moderate levels of 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 lower height buildings (2-3 stories for
Page 17 of 39
Edina Housing & Redevelopment Authority Issued March 3, 2025
Redevelopment Opportunity – 5146 Eden Ave Page 5
example). Additional height is acceptable and preferred in the western and northern portions of
the site to avoid overwhelming the public streets.
The layout and massing of new buildings must recognize the importance of the new sidewalk
and pedestrian bridge at the northern edge of the site. This public route provides convenient
access from the parking garage to the site. This public route must remain welcoming to guests
and visitors after the site is developed.
Outdoor Green Space
A portion of the site should be arranged to provide a shared outdoor space for residents,
guests and the general public. This could be arranged with a combination of landscaped and
hardscaped areas. This outdoor space is anticipated to be privately owned and maintained and
subject to a limited-access public use easement. There is no mandatory size or placement of
this outdoor space. Additional outdoor spaces exclusively for residents and guests of the new
building are also encouraged provided that a portion can be shared with the general public.
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. A
new pedestrian bridge provides access from the site to the parking garage.
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 housing
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
Page 18 of 39
Edina Housing & Redevelopment Authority Issued March 3, 2025
Redevelopment Opportunity – 5146 Eden Ave Page 6
- 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 levels require greater degrees of affordability
Floor to Area Ratio Varies by land use, typically not applicable to multi-family residential
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 adjacent Jerry’s office
building typically recognized as acceptable limit for projects in this area
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; there is a public parking garage adjacent to the site
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
sidewalk 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; mixture or 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 and
attainable units is strongly preferred but not mandatory
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)
Page 19 of 39
Edina Housing & Redevelopment Authority Issued March 3, 2025
Redevelopment Opportunity – 5146 Eden Ave Page 7
• 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
ANTICIPATED SELECTION PROCESS
The Seller 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) anticipated 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 of sale.
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 no later than Monday April 21st, 2025 at 5:00 pm CST.
Page 20 of 39
Edina Housing & Redevelopment Authority Issued March 3, 2025
Redevelopment Opportunity – 5146 Eden Ave Page 8
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.
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 21 of 39
Edina Housing & Redevelopment Authority Issued March 3, 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.
(1) 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.
Also attach a conceptual site plan that generally depicts the site layout and massing
envisioned for the site. One page minimum; three pages maximum.
(2b) Anticipated Commercial Uses included on Site
Description of Commercial Use(s) Approx Size (sq ft)
A
B
C
Page 22 of 39
Edina Housing & Redevelopment Authority Issued March 3, 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
Commercial Use(s) NA
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 23 of 39
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Information / Background:
Summary
Several proposals have been received to purchase and redevelop the 3-acre vacant property
located at 5146 Eden Avenue. Staff is reviewing those proposals and preparing for a discussion with
the HRA Board to select the preferred developer(s).
This memo is provided to highlight the range of proposals received. No formal action is needed at
this time.
Background
Based on preferences expressed by the HRA Board, a Request for Proposals (RFP) was prepared
and released on March 3, 2025. The RFP document was streamlined to eliminate the mandatory
details that shaped prior efforts. More generalized language was included to prioritize ownership
housing and missing middle type housing along with new commercial space.
The RFP is included in the meeting packet for reference.
Responses Received from 11 Developer Teams:
All proposals are responsive to the broad range of preferences identified in the RFP
All proposals are from experienced developers
o Full service real estate developers
o Teams of real estate developers with complementary niches
o For-profit and not-for-profit developers
Date: April 24, 2025
To: Chair and Commission Members of Edina HRA
From: Bill Neuendorf, Economic Development Manager
Subject: 5146 Eden Avenue – Summary of Proposals Received
Page 24 of 39
5146 Eden Avenue – Summary of Proposals Received Staff Report Page 2
o Some teams have completed projects in Edina, others have completed projects
elsewhere
All proposals are low-rise and mid-rise (no high-rises proposed)
Implementation of any of the proposals will take approximately 1 to 3 years in order to
secure regulatory approvals, pre-sales, financing and construction.
The proposals are quite varied and include many creative strategies to redevelop the site.
Many different types of housing and commercial spaces proposed including:
o Senior cooperative
o Townhouses (ownership and rental)
o Rowhouses (rental)
o Condominiums
o Senior apartments
o Family apartments
o General purpose apartments (all-ages)
o General purpose / all ages apartments
o Professional office
o Commercial (retail, restaurant, events or service)
Broad range of price-points proposed for new housing, including:
o Low-moderate income households (ie. Affordable)
o Moderate income (ie Attainable)
o High to very-high income (Market rate)
Proposed land prices range from more than $1 million to nearly $6 million
Variety of strategies to finance the proposals including:
o Private funding
o Tax Increment Financing
o US Housing & Urban Development (HUD)
o MN Housing Low-Income Tax Credits
o Grants
o Combinations of the above
Page 25 of 39
5146 Eden Avenue – Summary of Proposals Received Staff Report Page 3
Next Steps:
Staff is reviewing the proposals and will prepare a summary to assist the HRA Board members in
evaluating the options. In addition to land price and satisfaction of site development goals,
evaluation of the proposals should also take the City’s Budget Values and Budget Pillars into
consideration.
The proposals are anticipated to be discussed at the May 15th HRA meeting. As allowed by MN
Statute, this discussion is intended to be a “closed” session to maintain the sellers’s ability to
negotiate for the highest price and the best outcome. At the conclusion of the closed session,
finalists will be notified and invited to present their proposal to the HRA Board at a future meeting.
The selection of the preferred developer or development team will occur at a future meeting (mid-
summer) that is open to the public.
# # #
Page 26 of 39
d
ITEM REPORT
Date: April 24, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 8.1
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Other Department: Community Development
Item Title: Preparation for Future Discussion about Tax Increment Financing
Action Requested:
No action required; for informational purposes only.
Information/Background:
Staff is preparing the agenda for upcoming HRA meeting which is intended to be a work session to
discuss Edina's use of Tax Increment Financing.
Edina has used TIF as a strategic financing tool to deliver short-term and long-term benefits to the
general public since the early 1970s. TIF was essential to build public parking at 50th & France, the
mixed-use destinations at Centennial Lakes, Edinborough Park, Grandview, Pentagon Village and
several other sites in the community.
The use of TIF is guided by Minnesota Statutes and Edina's TIF Policy. The Policy was completely
rewritten in 2022 to be more transparent, effective and results-oriented. The TIF Policy was also
coordinated to address the requirements in Edina's Comprehensive Plan, Affordable Housing Policy
and Sustainable Buildings Policy. The TIF Policy is attached for reference.
Over the past year, members of the HRA Board have asked several questions regarding the policy
and procedures applied when Edina considers Tax Increment Financing.
The discussion topics are anticipated to include:
1. Is City policy driving the need to use TIF more frequently?
2. Is there a preferred order and timing to consider TIF?
3. Should TIF be used only for specific types of costs?
4. Should the strategy of using TIF be modified to be programmatic rather than project/outcome-
based?
There may be additional discussion topics. Please notify Bill Neuendorf or Scott Neal if additional
aspects of Edina's TIF Policy should be discussed.
Resources/Financial Impacts:
NA
Relationship to City Policies:
Tax Increment Financing Policy, Affordable Housing Policy, Sustainable Buildings Policy, Capital
Improvement Plan, Comprehensive Plan
Supporting Documentation:
1. Edina TIF Policy - approved 12-20-2022
Page 27 of 39
Page 28 of 39
☒City Council Approved: 2011
☐City-Wide Revised: 12/20/2022
☐Department
City of Edina Policy
Tax Increment Financing Policy
BACKGROUND
The City of Edina has statutory authority to use Tax Increment Financing (TIF) pursuant to Minnesota State
Statutes Section 469.174-469.1799 (the TIF Act). TIF uses the increased property taxes generated by new real
estate development within defined geographic districts to pay for certain costs associated with new development
(including but not limited to affordable housing) as well as related public infrastructure and public realm spaces.
The City’s mission is “…to provide effective and valued public services, maintain a sound public infrastructure,
offer premier public facilities and guide the development and redevelopment of lands, all in a manner that sustains
and improves the health and uncommonly high quality of life enjoyed by our residents and businesses.” (Source:
2015 Vision Edina).
The land within the City boundaries has been substantially built-out for more than a decade and many of the older
properties are in the “redevelopment” phase. In order to construct a new structure, an older structure that is
unsound, outdated, or obsolete must typically be removed.
In most cases, development projects in Edina are privately funded using traditional debt and equity sources. From
time-to-time, however, the City has found it necessary to provide financial support for development projects that
deliver outstanding benefits to the community and that could not be accomplished without public financial
involvement.
As early as the 1970s, the City used TIF to help deliver desired commercial and multifamily development served
by public infrastructure elements including roads, sidewalks, utilities, public parking, and public realm spaces like
parks and plazas. TIF was essential to construct the commercial, residential and public elements at Edinborough
Park and Centennial Lakes Park (including affordable housing). TIF was also essential to fund public parking at 50th
and France and to transform the Grandview District from an industrial area to a mixture of residential,
commercial and civic uses with public parking. Historically, Edina has taken a more restrictive view on the use of
TIF than allowed by Minnesota Statute.
Page 29 of 39
City of Edina
Tax Increment Financing Policy
Page 2
PURPOSE OF POLICY
While most redevelopment projects in Edina are privately financed, on certain occasions, the City may
find it necessary to provide financial support in order to overcome unusual hurdles and to achieve
extraordinary benefits to the general public. The purpose of this policy is to:
• Limit the use of TIF to only projects that deliver permanent benefits to the general public that are better than
the minimum established in City Code
• Clarify that the use of TIF in Edina will be more limited than allowed by Minnesota Statute
• Establish criteria and guidelines for where new TIF Districts are established and how incremental taxes are
utilized in Edina.
• Ensure that TIF is used in a transparent, consistent and equitable manner to provide value to the community.
• Ensure that TIF is used to deliver both short-term and long-term improvements that are a benefit to the
general public in Edina.
This policy provides 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.
PUBLIC BENEFITS PURSUED WITH TIF
In addition to the Minnesota TIF Statutes, Edina applies an additional expectation that the use of TIF will deliver
permanent benefits to the general public other than tax base growth. Edina’s Comprehensive Plan establishes
guidance for the anticipated changes in land use and related systems for the next decade. Most land use changes
are anticipated to occur in commercial and industrial areas. Many of the preferred outcomes identified in the
Comprehensive Plan include changes to transform single use sites to mixed uses that provide a strong tax base,
improved connectivity and access for drivers, bicyclists and pedestrians. When necessary, TIF can be used to
achieve many benefits to the community, including:
• Transformational change of properties in a manner compatible with Comprehensive Plan, Small Area
Plans, Development Framework, Sustainability Policy, New Multifamily Affordable Housing Policy and
other Guidelines adopted by the City
• Improvements to the multi-modal transportation network, including roads and infrastructure for motor
vehicles, pedestrians, bicyclists and transit
Page 30 of 39
City of Edina
Tax Increment Financing Policy
Page 3
• Public realm improvements, including green space and placemaking elements including landscaping,
streetscaping and public art
• Public parking facilities that provide shared parking resources for more than one property
• Improvements to public utility networks; including potable water, fire protection, storm sewer and
sanitary sewer
• Stormwater retention and detention systems that benefit more than one property
• Removal of substandard buildings (as defined in MN Statute) that may have a blighting effect on the
community
• Preservation of buildings that are historically or culturally significant to the community
• Remediation of environmental contamination
• Creation and retention of long-term affordable housing at a variety of below-market price points
• Creation and retention of permanent employment opportunities
I. PROCEDURAL CONSIDERATION OF TIF
1) Authority rests with City Council. Consideration to establish a new TIF District shall be at the sole
discretion of the City Council. Administration and determine of specific uses of incremental property
taxes generated therein shall be at the discretion of the City Council or HRA. Since each development
project is unique, the use of TIF shall be considered on a case-by-case basis.
2) Preparation of TIF documents. The Edina Housing and Redevelopment Authority shall provide initial
direction regarding the potential use of TIF, shall review the Term Sheet that identifies the proposed use
of TIF on each project and shall review and approve the contractual documents such as TIF Agreements.
3) Eligible Applicants. Only current property owners or developers that have site control are eligible to apply
for TIF. Evidence of site control shall be provided in the TIF Application.
4) Negotiation of TIF terms. After the TIF Application is submitted, the developer shall negotiate financing
terms only with the City Manager, HRA Executive Director or designee. The prepared terms and
proposed contract shall then be presented to the HRA Board and the City Council as a whole.
5) Application Form. Developers that request TIF shall submit a completed application in a form approved by
the City Manager or HRA Executive Director. The application shall identify the anticipated financing
sources, including equity, type of debt, external grants/contributions, and the amount and type of TIF
support requested to resolve the financing gap. A complete development sources and uses pro forma shall
Page 31 of 39
City of Edina
Tax Increment Financing Policy
Page 4
be submitted, as well as an operating pro forma based on a stabilized project. The application shall include
calculations that identify the financing gap. This information is required to determine the “but for” test
required under the TIF Act. The application shall also identify extra-ordinary costs to develop the project
in Edina and shall also identify the exceptional public benefits that could be delivered if the project is
completed. The Application shall also address other criteria identified in this document.
6) Application Fee. The application fee shall be $10,000. 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. Application fees are non-refundable.
7) Use of Third-party Expert Advisors. Expert advisors shall be engaged by the HRA as necessary to ensure
compliance with the TIF Act and to provide expertise to supplement the abilities and capacity of staff.
Typical advisors have expertise in TIF law, public sector development finance, general development
finance, property inspection as it pertains to TIF, and real estate valuation, among other redevelopment
topics. All advisors shall be contracted to the HRA and shall uphold the interests of the HRA and the City
while providing service.
8) Developer Responsible for Fees. The developer shall be solely responsible for the payment of third
expenses pertaining to the developer’s request for TIF support from the time of the request to the
delivery of the Certificate of Completion. Prior to preparation of the Term Sheet, the applicant shall
submit to the City a deposit equal to the total estimated costs for legal and consultant fees. These funds
will be held in a non-interest-bearing escrow and the City will draw upon these funds to pay all related
expenses. Additional funds may be necessary if the scope of the work changes beyond the initial
expectation. Any unused balance shall be returned to the developer upon completion of the process. The
developer shall also be solely responsible for any costs related to requested amendments to the TIF
District or TIF Agreements.
9) 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 public benefits delivered if TIF would be
provided. Staff will then seek approval to engage third party advisors to fully vet the merits of the TIF
request.
10) 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. The Term Sheet should generally be considered simultaneously or soon after preliminary
zoning approval is obtained. The HRA should provide verbal indication whether they are agreeable to
preparation of binding contracts (commonly known as TIF Agreements) based on the Term Sheet.
11) Creation of TIF District. After consideration of the Term Sheet, staff shall begin the process of establishing
a TIF District to achieve the goals outlined in the Term Sheet.
Page 32 of 39
City of Edina
Tax Increment Financing Policy
Page 5
12) TIF Agreement. Staff shall work with legal and financial advisors to prepare complete and binding legal
agreements based on the Term Sheet. The TIF Agreement should be considered by the HRA Board
and/or the City Council after final zoning approval is obtained.
13) Building and Zoning Approvals. The provision of TIF is contingent upon receiving all other necessary
project approvals from the City.
II. FINANCIAL REPORTING AND TRANSPARENCY
1) Mandatory Reporting. The City shall submit all required reports on the use of Tax Increment Financing to
Hennepin County and the Minnesota Office of the State Auditor using the format provided by those agencies.
2) Year in Review Report. Each year, staff shall publish a report that summarizes the use of TIF written in plain
English style. This report shall include the following information for each active TIF District: start and end
dates, debt and contractual obligations, tax collection status, tax base status, and other pertinent information.
This report shall also quantify outcomes when TIF is used to achieve public benefits. This report should be
delivered to the Edina HRA in January and shall be made available to the applicable School District(s) and to
the general public upon request.
3) Website. The City shall post general information on the use of TIF in Edina on the City website.
III. ESTABLISHMENT OF TIF DISTRICTS
1) Preparation of TIF Plan. The HRA’s Financial Advisor shall prepare the TIF Plan to satisfy the requirements of
Minnesota TIF Statutes. The TIF Plan should be written in plain English style. The TIF Plan should describe the
intended redevelopment and/or housing outcomes and should identify how the use of TIF will help achieve
community goals as defined in the Comprehensive Plan and related plans.
2) Type of District. The type of District established shall be determined by the City Council in accordance with
the limitations contained in Minnesota Statute.
3) Boundaries and Term. The boundaries of each new district should be as small as necessary to achieve the
development goals of the subject properties and adjacent public areas. When establishing a new TIF District,
the shortest statutory term to achieve the desired outcomes should be considered. A longer term should be
considered when pooling is desired.
4) Impact on Municipal Services. The impact of the proposed project on the City’s delivery of services, capital
expenditures and operating expenditures shall be taken into consideration prior to the adoption of a TIF Plan.
5) Fiscal Disparities. Projects utilizing TIF are responsible for paying their share of the Fiscal Disparities
contribution from the property taxes generated from the project and within the boundaries of the District.
Page 33 of 39
City of Edina
Tax Increment Financing Policy
Page 6
6) Community engagement. The City shall follow standard protocol and processes for collecting community
input on every proposed TIF district. At a minimum, this typically includes advance notice, online engagement
and in person public meetings.
7) Input from School District and County. A draft of the TIF plan shall be provided to Hennepin County and to
the school district where the district is located for review and comment prior to the public hearing.
8) Establishment of District. Unless unique circumstances apply, establishment of a TIF District should coincide
with the execution of one or more TIF Agreements capable of satisfying the outcomes identified in the TIF
Plan.
9) Early De-certification. Within one year after the 5-year statutory deadline, the City should consider early
decertification of the District if no debts or contractual obligations for the incremental taxes remain. Within
one year after all debts and obligations have been satisfied, the City should consider whether to de-certify the
District early. Consideration should be given to the potential benefits from pooling available funds before the
District is de-certified.
IV. EXPECTATIONS FOR TIF SUPPORTED REDEVELOPMENT PROJECTS
1) Site Plan. The site plan for any project supported with TIF shall be designed to substantially follow the
regulations and guidelines as adopted in Edina’s Comprehensive Plan, Small Area Plans, Development
Framework and Southdale Design Experience Guidelines (where applicable). The expected quality and nature
of site plan improvements is highest when TIF is contributed. Projects supported with TIF shall fully satisfy
each of the following aspects as described in adopted plans and guidelines and as approved through the City’s
typical zoning review / site plan review process:
a. Subdivision of superblocks to establish a transportation grid with walkable, human-scale blocks
appropriate for the size, length and width of the property
b. Creation of new streets, sidewalks and trails to allow through traffic by the general public (recognizing
that redevelopment of neighboring parcels may be necessary to complete the through route)
c. Creation of new public realm spaces including streetscaping, lighting and public art
d. Minimum building setbacks (such as 30 ft and 50 ft in the Greater Southdale District) should be
considered “build to” lines
e. Applicable street room typologies implemented
f. Massing, recessed upper floors, building articulation, and fenestration provided
g. Perimeter spaces that front a public street or similar route with public easement shall be occupiable and
activated. Storage, parking, and utility spaces shall be kept to the bare minimum along public routes
Page 34 of 39
City of Edina
Tax Increment Financing Policy
Page 7
The provisions of this policy are not intended to require an additional site plan review process. The City
Council shall make the final determination of whether the site plans adequately abide by the Comprehensive
Plan and other adopted codes, plans and guidelines to warrant the use of TIF.
2) Exterior Finish Materials. The types of finish materials on portions of the building directly visible from a street
or other public realm space shall comply with Edina’s City Code. For TIF supported projects, a high degree of
stone, brick and other natural materials is preferred.
3) Public Realm Experience. A vibrant and welcoming public realm experience is essential for every project
supported with TIF. Examples of contributing elements include (but are not limited to): sidewalks wider than
required by City Code, public plaza, public seating areas, integrated transit shelters, landscaping, hardscaping,
commercial storefronts and residential walk-up units that directly engage the public realm areas. Under the TIF
Act, reimbursement through TIF for public realm amenities will need to be reviewed on a case-by-case basis,
but will be required even if not subject to TIF reimbursement.
4) Public Art. Projects supported with TIF shall incorporate permanent public art as an integral part of the public
realm experience. Each public art installation shall be secured with an easement that provides for the
maintenance and permanence of the art element by the owner. The public art elements shall be consistent with
those contained in the approved site plans. Additional art elements may be required when TIF is contributed.
Examples of additional art elements include but are not limited to: sculptures, murals, sidewalk poetry, water
features, light and sound displays, and rotating art installations. City Council shall make the final determination of
whether the quantity and type of public art elements warrant the use of TIF. Under the TIF Act, reimbursement
through TIF for public art will need to be reviewed on a case-by-case basis, but public art will be required even if
not subject to TIF reimbursement.
Members from the Edina community shall be engaged as part of the artist-selection process and/or the art-
selection process. The developer shall make the final art selection keeping in mind the recommendation and
input from the community members.
5) Public dedication or public easements. All public benefits in TIF supported projects shall either be owned by the
City or HRA, dedicated to the City or be secured with permanent easements (to the City) or restrictive
covenants to ensure that the public has long-term access to and long-lasting benefits from the improvements.
6) Affordable Housing Units. Multi-family development projects supported with TIF should incorporate any
required affordable units into the site, as opposed to providing the prescribed contribution to Edina’s
Affordable Housing Trust Fund.
7) Public Parking. Only those parking stalls that are available to the general public throughout all times of the day
and year shall be considered to be supported with TIF. Parking stalls that are dedicated for the exclusive use by
residents or tenants will not be eligible for TIF support. The public parking stalls shall be easily identified as
public parking with exterior signage near the entrance and wayfinding signage on the site.
8) Environmental Sustainability. Edina’s Sustainable Buildings Policy shall apply to all projects supported with TIF.
For TIF-supported projects, the applicable Sustainable Building Rating System shall be LEED Silver or better.
Additionally, electrification of heating systems and/or on-site renewable energy generation are preferred in TIF-
Page 35 of 39
City of Edina
Tax Increment Financing Policy
Page 8
supported projects; projects should achieve at least 2 total LEED points between Grid Harmonization and
Renewable Energy credits. Certification of the completed building(s) shall be required and compliance shall be
renewed (by the owner) throughout at least the term of the TIF District at the frequency identified by the
certifying agency.
9) Collaborative Partnerships. The developer should engage local neighborhood groups and other community and
regional organizations to provide the highest reasonable level of collaboration to ensure a successful project.
Community partners could include business and trade associations, private and non-profit groups and
associations, governmental agencies and similar stakeholders and benefactors. Evidence of effective engagement
should be provided in the TIF Application. This collaborative approach is also helpful to secure grants from
other agencies.
10) Mitigation of Construction Disruption. As part of the Go-Ahead letter by which the developer commits to
proceed with the project and prior to the site preparation and construction, a Construction Mitigation Plan
(CMP) shall be submitted to the City that identifies the developer’s and general contractor’s strategies to
address the inconveniences that occur to the neighbors and general public during the construction period.
Topics to be addressed in CMP include: milestones and methods to provide advance notice to neighbors; off-
street parking for contractors and suppliers; delivery routes for construction vehicles; queuing locations for
large vehicles serving the construction site; temporary street, lane or sidewalk closures; temporary detours for
vehicles, pedestrians, bicycles and transit vehicles; construction site security; and strategies to mitigate dust,
vibrations and noise. The CMP must also identify the responsible person to be contacted by neighbors when
questions or problems occur. Phone number and email address of the responsible job site person shall be made
available.
11) Fair Labor standards. The developer and general contractor shall certify that all applicable state and federal
labor laws have been satisfied and shall allow third party inspections or other means of confirming compliance.
Failure to comply with applicable state and federal labor laws shall be considered a default with appropriate
penalties.
12) Actions to Promote Diversity and Equity in Redevelopment. The development and construction of projects
with TIF support shall include best efforts by the developer and general contractor 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 contracts so that businesses owned by people under-
represented in the construction industry (including majority women-owned, majority minority owned, certified
MBE, WBE and VBE) have a fair and realistic opportunity to provide goods and services to the project.
The developer’s plan and strategy to achieve these goals (commonly referred to as Equity and Inclusion
Outreach Plan or EIOP) shall be included in the TIF Agreement. The plan shall identify employment and
contracting goals for women and people of color. The plan must also include an intentional strategy to pursue
and achieve these goals to the greatest extent practical. The plan shall also include the developer’s and general
contractor’s practices to pursue equity, including how they participate in workforce development programs and
similar activities in the Twin Cities.
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Standards and recommendations from State of Minnesota Department of Human Rights, Hennepin County and
similar local and regional agencies and trade associations shall be considered as guidance when identifying these
goals and strategies.
As a condition of the Certificate of Completion, the developer shall report on the implementation of the plan
as well as the outcomes. Penalties shall apply when the developer fails to make a good faith effort to implement
this plan.
V. USE OF TIF IN EDINA
1) TIF to deliver public benefits. TIF will only be used to enable a developer to complete a project that delivers
exceptional public benefits. An increase in property tax base alone is not sufficient to warrant the use of TIF.
TIF shall also be used as a means to finance public infrastructure improvements carried out by the City.
2) “But for” Test. Any use of TIF shall be subject to the “but for” test as prescribed in Minnesota Statute; meaning
that “but for” the use of TIF, a project of the size, scale and quality proposed would not occur. The public
benefits delivered by the project would also not occur on the site without the use of TIF.
3) Final Site Plan Approvals. Requests for TIF support after preliminary zoning has been granted may result in
changes to the preliminary site plan to comply with this TIF policy. Any delays or costs due to a re-review are
the sole responsibility of the developer.
4) Financial Gap. TIF should only be considered to fill a financial gap that is unable to be satisfied by traditional
equity and debt sources. TIF assistance will not be provided to projects that have the financial feasibility to
proceed without the use of TIF. TIF will not be provided solely to provide an excessive contingency to the
project or broaden a developer’s profit margins on a project.
5) Developer’s Capital Stack. TIF should be considered the last money into the deal for market-rate projects
provided with TIF support. This includes multi-family housing where 20% or fewer of the units are affordably
priced in accordance with Edina’s multifamily affordable housing policy.
6) Pay as You Go TIF Notes. TIF should 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 or HRA. Bonding or any other appropriate means of financing, supported
with TIF revenue should be used by the City to carry out public infrastructure improvements within the TIF
District.
7) Interest Rate. The interest paid on TIF Notes shall be consistent with the typical interest rate paid in the
marketplace for the type of project. The interest rate paid on the TIF Note should not exceed the interest rate
underwritten for the permanent financing.
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City of Edina
Tax Increment Financing Policy
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8) Deviations from Policy. 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 or HRA.
9) Impact on City Services. TIF will not be used to support development projects that place excessive demands on
municipal services or other capital or operating expenditures of the City.
10) Financial Analysis. The applicant shall provide to the City and its financial advisor all information necessary to
conduct a financial analysis of the proposed project. This information must be complete and accurate.
Falsification or manipulation of the financial information shall be terms for immediate disqualification of
consideration.
11) Financial Returns to Developer. The financial returns to the developer shall be within the typical industry
norms for the type and scale of the project. The use of TIF shall be limited to increasing the returns to the
lower level of the normal range.
12) Projections of Incremental Taxes. The Financial Advisor shall use realistic projections for the value of
incremental taxes generated over time. The amount of TIF pledged shall not exceed the amount projected to
be generated from the completed project.
13) Access to Complete Site and Project Information. Prior to approval of the Term Sheet, the developer shall
provide any surveys, 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 legal and financial
consultants may require in order to proceed with an independent underwriting. Such information is subject to
the Minnesota Government Data Practices Act and may be public information at the time of submission.
Proprietary information will be kept non-public to the extent allowed by Minnesota statute.
14) Financial Guarantees. In the event that a type of TIF support other than Pay-as-you-go Note is used, the
developer shall provide adequate financial guarantees to ensure completion of the project and the repayment of
the tax increment financing in the event that the project fails to be completed. Types off guarantees may include,
but are not limited to, assessment agreements, insurance, letters of credit, etc.
15) Developer experience and capacity. Any developer requesting TIF shall demonstrate past success in real estate
development as well as specific capability in the type and scale of development proposed. As part of the TIF
Application, the developer shall submit a list of critical members of the development team that identifies
professional qualifications and references.
16) Inflated 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, unreasonable expense categories and excessive
contingencies will not be accepted.
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City of Edina
Tax Increment Financing Policy
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17) Look back. The TIF agreement will include “look back” provisions to ensure that the TIF was actually needed
and shall include early termination of TIF Note payments and/or “claw back” provisions if it is determined that
TIF was not needed at the level identified in the TIF Agreement. The clawback provision may be waived for tax-
credit and similar affordable housing developments.
18) Real Estate Transactions. TIF shall not be used when land acquisition costs exceed market land costs.
Acquisition costs shall be scrutinized to ensure that the purchase price is fair and reasonable in relation to
recent comparable transactions. If deemed necessary by the City, a current real estate appraisal prepared by an
independent appraiser selected by the City shall be provided to validate the fair market value of the land in as-is
condition. A high purchase price alone is not sufficient to warrant the use of TIF.
19) New and Retained Job Opportunities. When jobs are created or retained, preference should be given to jobs
that are not currently located within the City. TIF will not be used for projects that would give a significant
financial advantage over similar businesses located in the City.
20) 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 benefits delivered by the completed market rate project.
21) Delivery of TIF Note(s). TIF Notes shall only be delivered to the developer (and be interest-bearing and
payable) after the completion of the full project, delivery of the public easements, issuance of Certificate of
Occupancy, certification of final costs, documentation of final equity and inclusion outcomes and other key
parameters identified in the TIF Redevelopment Agreement. A Certificate of Completion shall be issued by the
City/HRA to confirm completion of all TIF related requirements.
22) Park Dedication Fees. When TIF is used to support development of new outdoor publicly available spaces 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.
23) Grant Funding. Grant funding from other agencies shall be pursued when TIF is used for a development project.
The amount of 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.
24) Business Subsidy Laws. The City will require compliance with the State of Minnesota Business Subsidy Laws in
Minnesota Statutes, Section 116J.993 through 116J.997, unless the project meets one of the business subsidy
exceptions.
25) Pooling. When pooled TIF funds are available from a different TIF District, their use should be prioritized to
provide affordable housing in a greater amount, longer term, or lower target income than what is usually
achieved using other City policies. Other uses of pooled funds shall be at the direction of the City Council or
HRA.
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