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Home My WebLink About2025-06-12 HRA Packet Meeting location: Edina City Hall Council Chambers 4801 W. 50th St. Edina, MN Housing & Redevelopment Authority Meeting Agenda Thursday, June 12, 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 2863 130 0932. 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. 2863 130 0932 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. May 15, 2025 Regular Meeting Minutes Page 1 of 53 7. Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) 7.1. Sale of Real Estate at 5146 Eden Avenue 7.2. France Avenue Pedestrian Crossing - Project Update 8. Executive Director Comments 8.1. Legislative Update - Omnibus Tax Bill 8.2. Eden Willson TIF District - Financing Update 9. HRA Member Comments 10. Adjournment Page 2 of 53 BOARD & COMMISSION ITEM REPORT Date: June 12, 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: May 15, 2025 Regular Meeting Minutes Action Requested: Approve May 15, 2025, meeting minutes. Information/Background: Supporting Documentation: 1. May 15, 2025 Regular Meeting Minutes Page 3 of 53 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY MAY 15, 2025 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:33 a.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Jackson, and Risser. Absent: Commissioners Agnew and Pierce III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED – AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Risser, approving the meeting agenda as presented. Ayes: Jackson, 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 Risser, approving the consent agenda as presented: VI.A. REQUEST FOR PURCHASE: CHANGE ORDER WARRANT DATE: EDEN AVENUE & GRANGE ROAD ROUNDABOUTS VI.B. DRAFT MINUTES OF REGULAR MEETING OF APRIL 24, 2025 Ayes: Jackson, Risser, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS VII.A. MOTION TO CLOSE SESSION – MOVED Motion by Commissioner Jackson, seconded by Commissioner Risser, moving into closed session, as permitted by MS. 13D.05 subdivision 3 to review and discuss proposals for sale of land at 5146 Eden Ave. Ayes: Jackson, Risser, and Hovland Motion carried. The Board stated that they would like to see the proceeds from the sale of this land go towards the second mortgage program. The Board also expressed concerns about summer and hot weather approaching, and the Lewis Park building still has no HVAC, and thinks that the funds could go towards that project. VIII. EXECUTIVE DIRECTOR COMMENTS – Received Page 4 of 53 Minutes/HRA/May 15, 2025 Page 2 IX. HRA MEMBER COMMENTS – Received IX. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Risser, to adjourn the meeting at 9:25 a.m. Ayes: Jackson, Risser, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Page 5 of 53 d ITEM REPORT Date: June 12, 2025 Item Activity: Discussion Meeting: Housing & Redevelopment Authority Agenda Number: 7.1 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: Sale of Real Estate at 5146 Eden Avenue Action Requested: No action required; for discussion purposes only. Information/Background: The Edina Housing & Redevelopment Board met twice in closed session to discuss the potential sale of real estate at 5146 Eden Avenue. Those discussions were not open to the public so that the HRA Board could review the key aspects of the eleven (11) proposals, discuss the pros and cons of each while still retaining leverage and confidentially for the final negotiations with the selected development team. Past discussions also considered the transfer of the parcel to the City of Edina before it is put under contract with a private real estate developer. This interim transfer would allow the sales proceeds to be used by the City for any City purpose, instead of the Edina HRA whose funding authority is limited to affordable housing and redevelopment. Staff will provide a brief update based on the closed session discussions held on June 10, 2025. Resources/Financial Impacts: NA Relationship to City Policies: Comprehensive Plan Supporting Documentation: None Page 6 of 53 d ITEM REPORT Date: June 12, 2025 Item Activity: Information Meeting: Housing & Redevelopment Authority Agenda Number: 7.2 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Other Department: Community Development Item Title: France Avenue Pedestrian Crossing - Project Update Action Requested: No action required; for informational purposes only. Information/Background: The City continues to explore the concept of linking neighborhoods on either side of France Avenue with a grade-separated pedestrian crossing. In early May, the City released new renderings and a new video to illustrate how a pedestrian underpass could be incorporated into the redevelopment of sites between Gallagher Drive and 72nd Street. The new renderings are found here: https://www.bettertogetheredina.org/france-avenue-pedestrian- crossing. Comments and questions can be posted to this page to help inform City staff and elected officials. To date, the HRA has been the sponsor of these concept studies. Monies previously collected in the Centennial Lakes TIF District were used for the study of the initial concept. New tax dollars generated by the new commercial properties adjacent to the pedestrian crossing are anticipated to be the local funding source. The City's general fund levy is not anticipated to be needed to fund this proposal. Later this summer, the concept, along with community feedback, will be presented to the City Council for a decision whether or not to pursue funding from regional, state and federal sources and advance this concept into the "preliminary engineering" phase. Resources/Financial Impacts: Not applicable. Relationship to City Policies: Comprehensive Plan Supporting Documentation: 1. France Ave Underpass concept for HRA 6-12-2025 Page 7 of 53 France Avenue Pedestrian Crossing A potential pedestrian connection between the South Cornelia / Parklawn and Centennial Lakes / Promenade area Presentation to: Edina Housing & Redevelopment Authority For Information June 12, 2025 This packet describes the general location and background of this concept. The images illustrate how this new route might look and function. These images are conceptual only and intended for discussion. Page 8 of 53 June 11, 2025 Work Session Discussion •Location and Background •Timeline •Overview •Conceptual Images •Discussion 2 Page 9 of 53 Location & Background County Road 17 vs. France Avenue •Pedestrian connectivity has been challenging for decades in this area •Hennepin County efforts focused on vehicle access on County Rd 17 •City commissioned design study in 2007- 2008 •City has been making incremental sidewalk improvements for 10+ years to cross France Avenue •Nine Mile Creek regional trail extended into Edina •Simultaneous redevelopment of 7200/7250 and 7235 parcels create new opportunity to make pedestrian improvements 3 Page 10 of 53 Timeline •Sidewalks •Crosswalks •Lighting •Promenade Trail •York Ave Underpass •Nine Mile Creek Bike Trail Past Improvements 2007-2015 •Explore options •Explore partnerships •At grade crossing •Re-align roadway •Over-the-road •under-the-road Conceptual Study 2023-present •Full engineering •Regulatory review •Phasing •Pursue full funding Preliminary Engineering Future •Bid Documents •Final regulatory approvals •Construction Final Design & Construction Future 4 Page 11 of 53 Overview •Since staff recognized this opportunity in 2023, the following steps have been taken to explore a potential pedestrian improvement first envisioned in 2008. •Toured multiple sites in Hennepin County that have similar pedestrian crossings •Met with Hennepin County officials to explore partnerships, regulations and desirability of a pedestrian improvement •Engaged CSG Engineering to explore the general feasibility of an over-the-road and under-the road concept •Engaged LHB Planning/Engineering to conduct more detailed concept study, including visioning and a thorough feasibility study that focused on the preferred option of an underpass •Worked with adjacent property owners to consider needs of a pedestrian crossing as they prepared their site plans •Engaged Confluence Design to prepare concept renderings to illustrate how this idea could take shape •Collecting public input to inform future decision-making by City Council •Site plans which anticipate a future pedestrian crossing have been approved by City Council •Construction has commenced at 7200/7250 •Construction is anticipated to begin at 7235 later this year 5 Page 12 of 53 Conceptual Images •These images and video are posted at BetterTogetherEdina.org •Comments and questions can be submitted online or via other usual means 6 Page 13 of 53 Lunds & Byerlys 7200 New Apartments Pinstripes 7250 New Offices 7235 Existing Macys Furniture Future Mixed UsesCedars of Edina Apartments Office Building Sunrise Senior Living 71 France Apartments Cent Lakes Park Promenade Park & Trail Existing Sidewalks & Trails 7 7 Page 14 of 53 Pinstripes 7235 Existing Macys Furniture Future Mixed Uses County Rd 17 – 27,000 AADT – 45 mph – 6-8 lanes71 France Apartments Cent Lakes Park Promenade Park & Trail Sunrise Senior Living Lunds & Byerlys Office Building Cedars of Edina Apartments 7250 New Offices 7200 New Apartments Centennial Lakes & Promenade -Population 4,473 -Households 2,961 -Res. Density 13.8 / acre -Median Age 68.2 years -Under 18 years 7.4% -65+ years 55.9% -Disabled 25.4% -Census Tract 240.04 Edina -5.2 / acre -44.8 yrs -22.2% -22.7% -9.5% 2023 Demographics South Cornelia & Parklawn -Population 4,886 -Households 2,214 -Res. Density 7.2 / acre -Median Age 37.6 years -Under 18 years 17.6% -65+ years 17.0% -Disabled 7.9% -Census Tract 240.03 8 8 Page 15 of 53 Approved Site Plans for Private Redevelopment at 7200, 7250 & 7235 France Ave Image from 7-25-2024 9 9 Page 16 of 53 Image from 7-25-2024 Private Redevelopment creates rare opportunity to consider public improvements 10 Page 17 of 53 Prior studies recommended several pedestrian improvements in this area 11 Page 18 of 53 Some improvements have already been completed – York Ave. Underpass 12 Page 19 of 53 New Conceptual Video and Renderings of Pedestrian Crossing and Connections to Neighborhoods Prepared April 2025 13 Page 20 of 53 OVERVIEW - Birds Eye View looking north from Gallagher Lunds & Byerlys Concept for discussion only 14 Page 21 of 53 OVERVIEW - Birds Eye View looking west from 7235 France Concept for discussion only 15 Page 22 of 53 Looking east from future 10 ft sidewalk on 72nd Street – Post Demolition 2023 16 Page 23 of 53 Looking east from future 10 ft sidewalk on 72nd Street – Existing Conditions April 2025 17 Page 24 of 53 Looking east from new 10 ft sidewalk on 72nd Street Concept for discussion only 18 Page 25 of 53 Looking south toward Gallagher Rd along new 10 ft sidewalk Concept for discussion only 19 Page 26 of 53 Looking east toward new 60 ft public plaza between 7200 and 7250 buildings Concept for discussion only 20 Page 27 of 53 Looking east toward France Avenue in the new 60 ft wide public plaza Concept for discussion only 21 Page 28 of 53 Looking east toward France Avenue underpass is now visible; alternate stairway up to new public sidewalk Concept for discussion only 22 Page 29 of 53 Proposed underpass below France Avenue, looking east Concept for discussion only 23 Page 30 of 53 Proposed underpass below France Avenue, looking east Concept for discussion only 24 Page 31 of 53 Eastern edge of proposed underpass below France Avenue, looking east toward 7235, options to continue straight, left or right Concept for discussion only 25 Page 32 of 53 Public plaza at 7235, options to continue straight to Promenade Trail, left to Lunds/Byerlys, or right to Pinstripes Concept for discussion only 26 Page 33 of 53 Concept for discussion only New central walkway on 7235 site, looking east toward Promenade 27 Page 34 of 53 Concept for discussion only New central walkway on 7235 site, looking east toward Promenade 28 Page 35 of 53 Concept for discussion only New access to the Promenade Trail, looking south toward Centennial Lakes Park Centennial Lakes Park Existing townhouses Existing condos and apartments 29 Page 36 of 53 Concept for discussion only Wider regional bike trail, looking west toward France Ave from 7235 Pinstripes & Centennial Shops 30 Page 37 of 53 Concept for discussion only Gallagher looking west toward France Ave from 7235 31 Page 38 of 53 Concept for discussion only At France & Gallagher looking northwest toward new 7250 office building 32 Page 39 of 53 Along France Ave looking north on sidewalk leading to Lunds Byerlys – April 2025 33 Page 40 of 53 Along France Ave looking north on new 20 ft sidewalk leading to proposed underpass and Lunds Byerlys Concept for discussion only 34 Page 41 of 53 Concept for discussion only Along France Ave looking north near entrance to proposed underpass 35 Page 42 of 53 Entrance to proposed underpass, looking to the west from 7235 Concept for discussion only 36 Page 43 of 53 Mid-point of proposed underpass, looking west Concept for discussion only 37 Page 44 of 53 Public plaza between 7200 and 7235, looking west with stairway to 7200 public sidewalk Concept for discussion only 38 Page 45 of 53 Public plaza between 7200 and 7235, looking west with ADA route up to 7250 public sidewalk Concept for discussion only 39 Page 46 of 53 Looking southeast with new public plaza and new roadway and sidewalk between Gallagher Rd. and 72nd St. Concept for discussion only 40 Page 47 of 53 Discussion •What are your questions? •Comments? •Suggestions? •Does the Planning Commission want to prepare a formal statement about this concept and submit to City Council as an advisory memo? 41 Page 48 of 53 d ITEM REPORT Date: June 12, 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: Legislative Update - Omnibus Tax Bill Action Requested: No action required; for informational purposes only. Information/Background: During the 2025 state legislative session, the City/HRA requested two elements of special legislation pertaining to the use of Tax Increment Financing on challenging development sites in the Greater Southdale Area. Edina was one of eleven cities across the state to seek special legislation this year and to have those provisions included in the proposed omnibus Tax Bill. Special provisions to the typical regulations of tax increment financing are not unusual. The typical regulations are effective for most - but not all - development sites. The process to receive special legislation is onerous. If approved by the Minnesota House, Senate and Governor, the special provisions would then become available for the City/HRA to use. In order to apply the special provisions, the City & HRA is required to alert the taxing authorities and hold public meetings to discuss the proposal. The special provisions would become effective only after the ratification of the City Council and Board of the Housing and Redevelopment Authority (HRA). In some cases, additional approvals must be sought from the School District and County. Staff will provide an update regarding the status of the special legislation. At the time of this publication, the House & Senate are in Special Session to consider the omnibus Tax Bill along other pending legislation. Resources/Financial Impacts: NA Relationship to City Policies: Comprehensive Plan, Greater Southdale Area Plan Supporting Documentation: None Page 49 of 53 d ITEM REPORT Date: June 12, 2025 Item Activity: Information Meeting: Housing & Redevelopment Authority Agenda Number: 8.2 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: Eden Willson TIF District - Financing Update Action Requested: No action required; for informational purposes only. Information/Background: The Maison Green Apartments were completed in Spring 2024. Reuter Walton served as the real estate developer. Northwestern Mutual Life Insurance is the owner of the property. The owner and developer continue to lease the apartment units as they move toward rent stabilization of the project. The building is currently approximately 50% leased, slightly behind their initial projections. City staff recently completed the review of the final project outcomes as identified in the November 2021 Tax Increment Financing Redevelopment Agreement. The total property taxes collected from this site increased 11-fold as it redeveloped from a mostly vacant commercial property to a new luxury rental apartment building with first floor restaurant. There are also 20 affordable units in the building. Property taxes in Pay 2021 were approximately $100,000. In Pay 2025, property taxes have increased to approximately $1,100,000. Property taxes distributed to the City, County and most taxing agencies will be relatively flat during the years that tax increment is generated. Property taxes distributed to the Schools increased from $19,000 to $155,000. Property taxes distributed to the State and Fiscal Disparities pool have been reduced with the conversion from commercial to multi- family. On May 13, 2025, staff issued the Certificate of Completion and corresponding TIF Note for the principal amount of $5.1 million. The Note bears interest at 4.0%. Payments toward this TIF Note will be made beginning August 1, 2025. The new incremental property taxes generated by this completed project will be used to make payments. Seventy percent (70%) of tax increment will be directed toward the TIF Note. The remaining thirty percent (30%) will be directed to City administrative expenses and payments on the City bond issued to construct the surrounding road improvements on Eden, Grange, Willson and 50th. Resources/Financial Impacts: The issuance of the TIF Note was anticipated in the budget. Payments made toward the Note will be limited to 70% of the tax increment collected. If insufficient increment is collected to make Note payments, neither the HRA or the City is at risk. Financial risk pertaining to the TIF Note rests solely with the real estate developer and property owner. Relationship to City Policies: Comprehensive Plan, Tax Increment Financing Policy Supporting Documentation: 1. 4917 Eden TIF Completion Checklist 5-13-2025 Page 50 of 53 Page 51 of 53 Certificate of Completion Checklist (4917 Eden Avenue — Maison Green Apartments) This is a summary of the deliverable requirements of the Redevelopment Agreement (4917 Eden Avenue) dated November 3, 2021. This sheet is intended to be completed in connection with Developer's request for a Certificate of Completion and prior to the issuance of the TIF Note. This sheet is provided for convenience and does not modify the terms of the Redevelopment Agreement. 0 E—I A., Description of Required Minimum Improvements Satisfactorily Completed (yes or no) Staff Notes A. Completion* of 2 levels of below-grade parking Yes Site visit 5-16-24 B. Completion* of 7-story mixed-use building at 4917 Eden Ave. with approximately 176 market rate units, 20 affordable units and 3,400 square feet of commercial space (4925 Eden Ave) Yes Confirmed, all permits closed out 11-4-2024 C. Completion* of surface Public (shared) Parking Yes Confirmed 11-4-2024 D. Completion** of all site work Yes Confirmed 11-4-2024 E. Completion** of Public Sidewalks and Streetscapes Yes Confirmed 11-4-2024 *As evidenced by CO or TCO by Building Department **As evidenced by acceptance of site and street improvements by Engineering and/or Community Development Departments PART TWO Description of Required Public Benefits Satisfactorily Completed (yes or no) Staff Notes A. Public Access Easement for Sidewalks NA and Streetscapes* All public sidewalks in public right of way (not private easement) B. Permanent easement and acquisition right for Future City Land (Exh 0)* Yes Doc #6135178 dated May 13, 2025 C. Parking Easement for Public Parking areas (Exh M)* Yes Doc #6135180 dated May 13, 2025 D. Equity and Diversity Report (Exh P & Q) Yes Confirmed by Frana Reports (Jan & March 2024) • 4.8% women achieved (5% goal) • 24.3% BIPOC achieved (10% goal) • 8.7% WBE achieved (5% goal) • 4% MBE achieved (4% goal) • 12.7% WBE / MBE achieved (no minimum) E. Restrictive Covenant for Affordable Housing (Exh K)* Yes Doc #6128822 dated April 8, 2025; affordable term expires July 1, 2049 F. First Right of Purchase - Affordable Units (Exh L)* Yes Doc #6135179 dated May 13, 2025 *Documents must be executed and recorded CONTINUED ON NEXT PAGE E-5 4847-9479-0397\3 Page 52 of 53 Prepared by: Signature, Economic Deve Approved by: ure, Edina City Manager / HRA Executive Director W E-1 Po Description of Final Costs Incurred and Gap Analysis Confirmed Amounts Staff Notes A. Confirmation that no Default remains uncured. OK No default condition exists. B. Confirmation that Developer has submitted final TIF Pro Forma to reflect actual costs Yes Received 5-24-2024 C. Total Amount of Qualified Costs (see 3.2(a)) confirmed as expended $11,874,554 Estimated to be far greater than the $5.1 M TIF Note D. Total Development Costs of Minimum Improvements $ 8 6,29 0,68 0 Confirmed June 2024 - actual cost slightly above $85.07 M estimate E. Total Amount grant funds received none F. Final financial gap to provide Market Return > $5,100,000 May 2024 projections yielded 5.47% return (NTE 6.03%) G. Principle Amount of TIF Note $51100 9 000.00 NTE lowest of $5.1 million or 6.10% of Total Development Cost H. Interest Rate of TIF Note (see 3.3(b)) 4.00% Lender rate is 4.10% but Note rate NTE 4.00% 0 ki p.., Description of Miscellaneous Requirements Satisfactorily Completed (yes or no) Staff Notes A. Executed Redevelopment Agreement Yes Executed November 3, 2021 B. Recorded Memorandum of Agreement* (Exhibit F) Yes Doc # 5915452 dated January 26, 2022 *Documents must be executed and recorded Certificate of Completion Checklist — 4917 Eden Avenue / 3. 2.02.5-' Date etcy 30, c9-0a5 iate E-6 4847-9479-0397\3 Page 53 of 53