HomeMy WebLinkAbout2025-01-16 HRA Meeting Packet
Meeting location:
Edina City Hall
Council Chambers
4801 W. 50th St.
Edina, MN
Housing & Redevelopment Authority Meeting Agenda
Thursday, January 16, 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 2632 241 0875. Password is 5454. Press *3 on
your telephone keypad when you would like to get in the queue to
speak. A staff member will unmute you when it is your turn to speak.
Accessibility Support:
The City of Edina wants all residents to be comfortable being part of the
public process. If you need assistance in the way of hearing amplification, an
interpreter, large-print documents or something else, please call 952-927-
8861 at least 72 hours in advance of the meeting.
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Approval of Meeting Agenda
5. Community Comment
During "Community Comment," the Chair will invite residents to share issues or concerns
that are not scheduled for a future public hearing. Items that are on tonight's agenda may
not be addressed during Community Comment. Individuals must limit their comments to
three minutes. The Chair may limit the number of speakers on the same issue in the
interest of time and topic. Individuals should not expect the Chair or Commissioners to
respond to their comments tonight. The Chair will respond to questions raised during
Community Comments at the next meeting.
5.1. Executive Director's Response to Community Comments
6. Adoption of Consent Agenda
All agenda items listed on the Consent Agenda will be approved by one motion. There will
be no separate discussion of items unless requested to be removed by a Commissioner. If
removed the item will be considered immediately following the adoption of the Consent
Agenda. (Favorable roll call vote of majority of Commissioners present to approve, unless
otherwise noted in consent item.)
6.1. Appointment of the Executive Director of the HRA
6.2. Resolution No. 2025-01: Designating Official Newspaper
Page 1 of 75
6.3. Resolution No. 2025-02: Designating Official Depositories
6.4. HRA Minutes of Special meeting on December 17, 2024 and Regular meeting on
December 19, 2024.
7. Reports/Recommendations: (Favorable vote of majority of Commissioners
present to approve except where noted)
7.1. Election of Officers
7.2. 5146 Eden Avenue - Project Update and Discussion
7.3. HRA 2024 Year in Review
8. Executive Director Comments
8.1. Topics for HRA Discussion in 2025
8.2. 7250 France - Project Update
8.3. Pentagon Village - Project Update
9. HRA Member Comments
10. Adjournment
Page 2 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 5.1
Prepared By: Liz Olson, Administrative Support
Specialist
Item Type: Other Department: Community Development
Item Title: Executive Director's Response to Community Comments
Action Requested:
None, information only.
Information/Background:
Responses to questions posed during Community Comment at the last meeting were posted on the
City’s website at https://www.edinamn.gov/2051/Responses-to-Community-Comment. Executive
Director Neal will provide summaries of those responses during the meeting.
Resources/Financial Impacts:
Relationship to City Policies:
Supporting Documentation:
None
Page 3 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Action
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.1
Prepared By: Scott Neal, City Manager
Item Type: Other Department: Community Development
Item Title: Appointment of the Executive Director of the HRA
Action Requested:
Motion to appoint City Manager Scott Neal as Executive Director of the HRA.
Information/Background:
The City Council previously designated me as Executive Director of the HRA. I request
the Council affirm this designation with the requested motion. The proposed term of this
appointment will be concurrent with my employment as City Manager.
Resources/Financial Impacts:
Relationship to City Policies:
Supporting Documentation:
None
Page 4 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Action
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.2
Prepared By: Liz Olson, Administrative Support
Specialist
Item Type: Report & Recommendation Department: Community Development
Item Title: Resolution No. 2025-01: Designating Official Newspaper
Action Requested:
Approve Resolution No. 2025-01 designating the Edina Sun-Current as the official newspaper for the
Housing and Redevelopment Authority (HRA) for 2025.
Information/Background:
Staff recommends Council designate the Edina Sun Current as the official newspaper of
the HRA for 2025.
Resources/Financial Impacts:
Relationship to City Policies:
Supporting Documentation:
1. Resolution No. 2025-01 Designating Official Newspaper
Page 5 of 75
RESOLUTION NO. 2025-01
DESIGNATING OFFICIAL NEWSPAPER
BE IT RESOLVED by the Edina Housing & Redevelopment Authority of the City of Edina, Minnesota, that the
Edina Sun-Current is hereby designated as the Official Newspaper for the Edina Housing & Redevelopment
Authority for the year 2025.
Passed and adopted this 16th day of January 2025.
Attest:
James Pierce, Secretary James B. Hovland, Chair
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS
CITY OF EDINA )
CERTIFICATE OF EXECUTIVE DIRECTOR
I, the undersigned duly appointed and acting Executive Director for the Edina Housing & Redevelopment
Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina Housing
& Redevelopment Authority at its Regular Meeting of January 16, 2025, and as recorded in the Minutes of said
Regular Meeting.
WITNESS my hand and seal of said City this ______________ day of ___________________,
____________.
Executive Director
Page 6 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Action
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.3
Prepared By: Liz Olson, Administrative Support
Specialist
Item Type: Other Department: Community Development
Item Title: Resolution No. 2025-02: Designating Official Depositories
Action Requested:
Adopt Resolution No. 2025-02 designating official depositories for the Housing and
Redevelopment Authority (HRA) for 2025.
Information/Background:
See Resolution No. 2025-02 designating official depositories for 2025.
Resources/Financial Impacts:
Relationship to City Policies:
Supporting Documentation:
1. Resolution No. 2025-02 Designating Official Depositories
Page 7 of 75
RESOLUTION NO. 2025-02
DESIGNATING OFFICIAL DEPOSITORIES
BE IT RESOLVED that U.S. Bank, Crown Bank and Tradition Capital Bank, are hereby authorized
to do banking business in Minnesota, be and are hereby designated as Official Depositories for the Public
Funds of the Edina Housing and Redevelopment Authority, City of Edina, County of Hennepin, Minnesota
until January 1, 2026.
Dated: January 16, 2025
Attest:
James Pierce, Secretary James B. Hovland, Chair
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS
CITY OF EDINA )
CERTIFICATE OF EXECUTIVE DIRECTOR
I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment
Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina
Housing and Redevelopment Authority at its Regular Meeting of January 16, 2025, and as recorded in the
Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this ______________ day of ___________________,
____________.
Executive Director
Page 8 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Action
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.4
Prepared By: Liz Olson, Administrative Support
Specialist
Item Type: Minutes Department: Community Development
Item Title: HRA Minutes of Special meeting on December 17, 2024 and Regular meeting on
December 19, 2024.
Action Requested:
Approve Draft Minutes of Special HRA meeting on December 17, 2024 and Regular HRA Meeting on
December 19, 2024.
Information/Background:
Supporting Documentation:
1. Minutes from December 17, 2024
2. Minutes from December 19, 2024
Page 9 of 75
Page 1
MINUTES
OF THE SPECIAL MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
DECEMBER 17, 2024
7:00 P.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 11:52 p.m. then explained the processes created for
public comment.
II. ROLLCALL
Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, Pierce, and Risser.
Absent: None.
III. MEETING AGENDA APPROVED – AS PRESENTED
Motion by Commissioner Agnew, seconded by Commissioner Jackson, approving the
meeting agenda as presented.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
IV. REPORTS AND RECOMMENDATIONS
IV.A. RESOLUTION NO. 2024-08; ADOPTING THE HRA BUDGET AND ESTABLISHING
THE TAX LEVY PAYABLE IN 2025 – ADOPTED
Executive Director Neal stated that they are asking for the approval of the proposed HRA budget
and tax levy for 2025, which is $259,300. Executive Director Neal stated it is a 3% increase from
the 2024 levy, and the City uses this money to fund housing and general economic development
activities.
Member Agnew introduced and moved adoption of HRA Resolution No. 2024-08,
Adopting the HRA Budget and Establishing the Tax Levy Payable in 2025. Seconded by
Member Jackson.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
V. ADJOURNMENT
Motion made by Commissioner Agnew, seconded by Commissioner Jackson, to adjourn
the meeting at 11:56 p.m.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Page 10 of 75
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
DECEMBER 19, 2024
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 Agnew, Jackson, and Risser.
Absent: Commissioner Pierce
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED – AS PRESENTED
Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving the
meeting agenda as presented.
Ayes: Agnew, 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 Agnew, approving the
consent agenda as presented:
VI.A. 2023 AFFORDABLE HOUSING COMPLIANCE REPORT
VI.B. DRAFT MINUTES OF REGULAR MEETING OF NOVEMBER 14, 2024 AND SPECIAL
HRA MEETING OF DECEMBER 3, 2024
VI.C. APPROVE 2025 HRA MEETING CALENDAR
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
VII. REPORTS AND RECOMMENDATIONS
VII.A. REDEVELOPMENT AGREEMENT FOR 7200 FRANCE AVE APARTMENTS AND
FIRST AMENDMENT TO THE 7200-7250 REDEVELOPMENT AGREEMENT –
APPROVED
Affordable Housing Development Manager Hawkinson stated she is seeking support for the
proposed development. She presented information regarding the site location, existing
redevelopment agreement, existing TIF district, adopted PUD and preliminary Site Plan approval,
additional public benefits, 10-year historical tax base growth, proposed tax base growth, cost drivers,
recommended loan terms, history of SPARC, requirements of SPARC, the use of SPARC funds, and
the affordable housing scorecard.
Affordable Housing Development Manager Hawkinson also discussed the hypothetical situations for
the proposed redevelopment agreement amendment.
Page 11 of 75
Minutes/HRA/December 19, 2024
Page 2
The Board asked questions regarding how hypothetical #3 will lower the tax base in the future,
investments for the additional 3 units proposed, and where the tax revenue from 7200 France
Avenue goes.
Nick Anhut, Ehlers and Associates, stated that they have the benefit of the original agreement, which
contemplated a hotel, meaning the property classification is slightly different from a rental property,
and it is a lower taxable valuation.
Affordable Housing Development Manager Hawkinson stated that the difference between the
market rate rents, and the affordable rents decreases the overall net operating income, which creates
the gap. She stated that the gap is $324,000 per unit at 15 units. She noted that the gap is consistent
with what they have seen as a loss of revenue for having affordable units in the past.
Affordable Housing Development Manager Hawkinson stated that the tax revenue from 7200 France
Avenue would go back into the regular tax base.
The Board asked what TIF financing can be used to pay for and if they can be used for aesthetics.
Jay Lindgren, Dorsey and Whitney, stated that TIF can be used for placemaking and elements that
are not purely just decorative. He stated that they are paying for other gaps within the project, not
necessarily the things that could be considered more decorative pieces.
The Board expressed concerns regarding the SPARC funds and total costs not being reported.
Affordable Housing Development Manager Hawkinson stated that when affordable housing within a
market-rate building the cost rests on the City rather than being spread out among the different
funding sources. She stated that staff recommends hypothetical #2 for the long-term benefit for the
City.
The Board expressed feedback regarding finding a balance, larger additional units, what else could
be done with the SPARC fund money, and mitigating risk.
Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving
Redevelopment Agreement for 7200 France Avenue Apartments reflecting the terms
and conditions of 15 units (10%) affordable for perpetuity and First Amendment to the
7200-7250 Redevelopment Agreement.
Ayes: Agnew, Jackson, and Hovland
Nay: Risser
Motion carried.
VII.B. REQUEST TO MODIFY LOAN AGREEMENT WITH EDINA CHAMBER OF
COMMERCE
Economic Development Manager Neuendorf said this item pertained to updating the Board on the
Loan Agreement with the Edina Chamber of Commerce. He presented information regarding the
background information on this item.
Shelly Loberg, Edina Chamber of Commerce, asked the Board for a deferment of the February
payment.
Annette Wildenauer, BIG Innovation Lab, stated that the BIG Innovation Lab is a business accelerator
for second-stage businesses and helps them move forward and find next steps for their businesses.
Page 12 of 75
Minutes/HRA/December 19, 2024
Page 3
Bryan Ruch, Groveland Confections, stated that he was looking for a way to grow his business and
did not have the assets to do that; however, being a part of the lab has helped his business
aggressively expand.
Logan Hershey, RBC Wealth Management, stated that from the beginning he wanted to be part of
the lab and now the lab has helped him grow his business and determine how to best spend his time
to do that.
The Board asked questions and provided feedback regarding new revenue streams with other cities,
stockholders for the innovation lab, what repaid SPARC funds are used for.
Annette Wildenauer, BIG Innovation Lab, stated that they have engaged in conversations with
Bloomington and Golden Valley to help those cities grow and build their businesses.
The Board requested allowing for community space for City Council to have office hours at the lab.
Economic Development Manager Neuendorf stated that the loan is with the Edina Chamber of
Commerce. He also noted that the repaid SPARC funds are used for excess TIF money and then
redistributed.
Nick Anhut, Ehlers and Associates, stated that for any excess TIF, the HRA has 9 months to return
those funds to the County for redistribution.
The Board asked about forgivable elements of the SPARC loan to the Chamber that would further
reduce the outstanding balance.
The Board asked for as much detail as possible when the Chamber of Commerce returns with its
formal request in January.
VIII. EXECUTIVE DIRECTOR COMMENTS – Received
IX. HRA MEMBER COMMENTS – Received
X. ADJOURNMENT
Motion made by Commissioner Agnew, seconded by Commissioner Jackson, to adjourn
the meeting at 9:18 a.m.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Page 13 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Discussion
Meeting: Housing & Redevelopment Authority
Agenda Number: 7.2
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Report & Recommendation Department: Community Development
Item Title: 5146 Eden Avenue - Project Update and Discussion
Action Requested:
For discussion only; no action required.
Information/Background:
This item pertains to the sale of real estate at 5146 Eden Avenue. The previous sale did not close as
the developer was unable to secure financing. Direction is requested from the HRA Board so that a
new Request for Proposal can be issued. The new RFP should identify clear priorities and realistic
expectations so that the property can be sold and redeveloped promptly.
Resources/Financial Impacts:
None
Relationship to City Policies:
List policies, strategic plans, work plans, etc related to this item. i.e. Comp plan, CAP, CIP
Supporting Documentation:
1. Staff Report 5146 Eden Update 1-16-2025
2. Staff Presentation 5146 Eden Sale & Redevelopment Discussion 1-16-2025
Page 14 of 75
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Information / Background:
Summary
City staff recommends that a new Request for Proposals be issued to solicit development interest
in the HRA’s vacant property at 5146 Eden Avenue. This process will require discussion and action
by the HRA Board and/or City Council to select a developer or team to purchase the site and
construct a new project.
This land can be monetized to provide new revenue to either the HRA or the City. If decisions are
made promptly and the transaction closes promptly, that new revenue could be realized in 2025 –
2026. Direction is requested so that the priorities of the HRA Board are better understood.
No action is needed at this time. This staff presentation and outline is only intended to update the
HRA Board so they can provide direction and prepare for decision-making in early 2025.
Background
The Edina HRA owns the vacant property at 5146 Eden Avenue. The City’s Public Works facility
was formerly located on this site and was relocated in 2012. The HRA intends to sell all or most of
the property to generate revenue, return the property to the tax rolls and enable a new
productive use on the site.
In the past, several proposals and concepts were discussed for the site. Most recently, the HRA
was under contract to sell to United Properties Residential and Jester Concepts for new housing
and a new restaurant. United Properties terminated the purchase agreement and the Jester
Date:January 16, 2025
To:Chair and Commission Members of Edina HRA
From:Bill Neuendorf, Economic Development Manager
Subject:5146 Eden Avenue – Outline of Potential RFP for New Buyer
Page 15 of 75
5146 Eden Avenue – Redevelopment Update Staff Report Page 2
Concepts contract has lagged and not yet resulted in a sale. Jester remains interested in locating a
new restaurant on the site but requires an updated purchase agreement.
City staff has outlined a new Request for Proposals (RFP) based on lessons learned in past years
and based on past direction from the HRA Board. The content of the final RFP will be modified
based on the direction provided by the HRA Board. Depending on the preferences of the HRA
Board, the site might need to be transferred to the City of Edina. If selected, that process will take
some time and the timeline in this document will be updated accordingly.
General Timeline
First Quarter 2025
•Issue RFP and review responses
Second Quarter 2025
•Select preferred developer
Third and Fourth Quarter 2025
•Developer to pursue zoning and preliminary site plan approvals using the City’s standard
regulatory review process
Second Quarter 2026
•Transfer ownership and begin construction
•This might be able to be moved to 2025 if the zoning entitlements and private financing are
secured with no delays.
Desired Outcomes (DRAFT Outline for Discussion – more flexibility may
be preferred based on the direction from the HRA Board)
The HRA seeks to have the site redeveloped with a mixture of uses including: multi-family
residential, restaurant or similar community gathering space and outdoor public park or public
plaza. The HRA remains open to other creative ideas that redevelop the site in a manner generally
consistent with the 7 Guiding Principles identified in the Grandview Development Framework.
Page 16 of 75
5146 Eden Avenue – Redevelopment Update Staff Report Page 3
Multi-Family Residential (OPTIONAL- REQUIRES HRA INPUT)
Owner-occupied housing may be a strongly preferred on this site. A combination of townhouses,
condominiums or cooperatives may be preferred. A combination of owner-occupied and rental
apartments will also be considered provided that the rental units are configured to be converted to
condominiums in the future. Proposals with only rental units may not be considered.
Affordability is an essential element for this site. While market-driven pricing can be acceptable,
preference will be given to proposals that include units at price points lower than the luxury
residences typically available in nearby neighborhoods. In accordance with City policy, at least 10%
of the units should be affordable to households earning 80% of Area Median Income. Additional
affordable units at different price points are also desired.
Restaurant or Community Gathering Space (OPTIONAL- REQUIRES HRA INPUT)
Most recently, the HRA had a contract with Jester Concepts to develop a stand-alone restaurant
on the site. While the HRA intends to continue working with Jester Concepts, the contract must
be renewed and updated to reflect the new housing configuration.
A full-service or fast-casual restaurant is desired. The restaurant should be open year round and
include a combination of indoor- and outdoor dining. The HRA has no preference for the type or
style of restaurant. However, it is important to consider the availability of onsite and adjacent
parking when proposing the type and scale of the restaurant.
The restaurant should also serve as a resource to patrons of the adjacent public outdoor space. A
carryout window or similar should be considered to allow park patrons to purchase products from
the restaurant.
Outdoor Public Park or Public Plaza (OPTIONAL- REQUIRES HRA INPUT)
The creation of an outdoor public space has long been identified as a “must have” for the site. This
new outdoor space should create a welcoming environment for nearby employees, residents,
customers and the general public to gather. This space must include opportunities for future public
art, active placemaking activities and small scale events. This space must be directly accessed from
Arcadia Avenue. This area could be configured as a publicly-owned park with passive recreation
opportunities, or a privately owned plaza with extensive public use rights.
Page 17 of 75
5146 Eden Avenue – Redevelopment Update Staff Report Page 4
Parking (for discussion only)
The residential users should have on-site parking that is incorporated into the building design. At a
minimum, the restaurant should have sufficient on-site parking for customers with disabilities,
carryout/ curb-side pickup, product deliveries and waste removal.
The adjacent public parking garage (aka Grandview Parking Garage) can be used as a resource for
visitors to the site, including restaurant employees and customers and visitors to the park/plaza.
Currently, the public parking garage is only partially full during week-day business hours (9 AM to 5
PM). The public garage is nearly empty weekdays after 5 PM and weekends.
Unique Features ((OPTIONAL- REQUIRES HRA INPUT)
If practical, the HRA prefers to engage creative partners that can create a unique mixed-use
development that may feature one or more of these unique program elements: co-housing, passive
house, mixed-income, community land trust, missing middle housing.
Illustrative Example (for discussion only)
These illustrations show how a combination of townhouses and multi-story condominiums or
cooperative might fit on the site with a stand-alone restaurant and public park. While this should
not be considered as the mandatory or preferred layout, it illustrates the general scale and feel of
what might be acceptable to the HRA. Many other site layouts are possible and the HRA is open to
many other arrangements.
Page 18 of 75
5146 Eden Avenue – Redevelopment Update Staff Report Page 5
Site Layout and Conditions (DRAFT Outline for Discussion more
flexibility may be preferred based on the direction from the HRA Board)
The site is currently zoned for Industrial uses and guided for mixed-uses. None of the City’s typical
zoning designations are suitable for this site. A rezoning to Planned Unit Development (PUD) is
anticipated. The City’s standard development review process will apply to this site. The following
site features should be considered in the proposal:
•All elements on the site must be designed to create a walkable and connected environment
•Site layout must incorporate the new pedestrian bridge constructed to improve access from
the public parking garage
•Site design must be in accordance with MN Accessibility Standard, ADA and PROWAG, as
applicable
•Height of 2-3 stories preferred adjacent to Eden and Arcadia Ave
•Additional height should be located toward the center of the property, away from the
public streets
•Maximum roof height should not exceed the height of the adjacent Jerry’s office building
•Typical setback from curb to building face should be between 20 and 30 feet and include the
following elements: curb – landscaped boulevard – public sidewalk – landscape buffer –
building face
Page 19 of 75
5146 Eden Avenue – Redevelopment Update Staff Report Page 6
•Fire Department will need access lane on site
•Deliveries and services must be accommodated on site without unusual disruption to the
City roads.
Selection Process (DRAFT Outline for Discussion – changes may be
needed based on the direction from the HRA Board)
The RFP will provide details of the selection process. Initial proposals will include only general
information to simplify the submittal and encourage more parties to submit. The most compelling
proposals will be asked to submit additional detail that will be available to the seller in selecting the
preferred buyer.
•<optional> transfer ownership back to the City and clean up title before issuing RFP
•<optional> obtain general feedback from Planning Commission before releasing RFP
•Issue RFP and publicize HRA’s interest in hearing new proposals
•Staff to review proposals and issue summary for public and HRA review
•Present to HRA in closed session to narrow field
•Invite approximately 3-4 developers to provide more detailed information and present their
proposal to the HRA in a public session
•HRA to meet in closed session to discuss pros and cons of the proposals
•HRA to meet in public session to announce the preferred developer and authorize staff to
prepare a sales contract for redevelopment purposes
•HRA to consider sales contract in public session
# # #
Page 20 of 75
5146 Eden Avenue
Redevelopment Goals and Sales Process
Staff Presentation to:
Edina HRA Board
January 16, 2025
For Discussion
Housing & Redevelopment Authority
Page 21 of 75
Introduction
Housing & Redevelopment Authority
The vacant 3-acre parcel is an
untapped and desirable asset
that can be monetized and
revitalized.
With clear expectations and
focused priorities, this next
sales effort has the best
chance for a prompt sale and
prompt redevelopment.
A “Request for Proposal” is
recommended to be issued
to identify a new buyer and
developer for the vacant
property.
Direction is sought so that
the sales criteria and
redevelopment expectations
can be clearly identified and
relayed to the interested
buyers and general public.
2Page 22 of 75
Housing & Redevelopment Authority
STARBUCK’S BUILDING
AVIDOR
SENIOR HOUSING
PUBLIC PARKING GARAGE
JERRY’S FOODS
5100 EDEN
CONDO, COOP, OR RENTAL
A combination of townhouses, condos, restaurant and
park was preferred when discussed in May 2024
This illustration shows one example
and is not the mandatory arrangement.
Is this still the desired direction? Or
should a wider variety of proposals be
considered?
3Page 23 of 75
Direction needed for Prompt, Successful & Transparent Transaction
Housing & Redevelopment Authority
1)Prioritize Speed of Sale or Sales Price?
2)Prioritize Speed of Sale or Alignment with Policies &
Guiding Principles?
3)Create a Confident Sale amongst Challenging Regulatory
Process
4)Require Mandatory Uses or Openness to Market Demand?
5)Include Ownership Housing or Rental Housing?
6)Encourage Complexity or Certainty?
7)Maintain Focus amidst Innumerable Details and Trade offs
8)Require Private Financing or Permit Limited Public
Financing?
9)How should Sales Revenue be used?
10)Closing the Deal
4Page 24 of 75
1) Prioritize Speed or Sales Price
Housing & Redevelopment Authority
Fast Sale
•Buyer accepts risk
•No contingencies
Highest
Sales
Price
Should the sales
process seek a fast
sale at lower price?
OR a typically
paced sale with a
higher potential
sales price?
If the HRA seeks revenue as soon as possible, a no contingency contract can be pursued quickly; but that will be
accompanied by a lower sales price. A traditional competitive sales process will likely achieve a higher sales price
but will take longer with a risk of not closing.
5Page 25 of 75
2) Prioritize Sale or Alignment to Policies & Guiding Principles
Housing & Redevelopment Authority
Over time, the City has adopted a variety of principles and policies to reflect the overall priorities of the
community. Although well intended, these principles and policies add cost to most projects. Higher construction
costs tends to reduces the land price.
Should the sales
criteria continue to
express desire to
comply with the
Grandview 7
Guiding Principles,
Affordability Policy
and Sustainability
Policy?
Higher Sales
Price
Certainty to
Close
City Mandates
6Page 26 of 75
3) Confident Sale amongst Challenging Regulatory Process
Housing & Redevelopment Authority
Every redevelopment proposal will require a zoning change, likely using the City’s PUD process since none of the
existing zoning designations align with the established preferences for the site. The City’s typical process requires
investment of 3-6 months time and money by the prospective buyer with risk of being denied. By clearly stating
the expectations for the site, the risk of being denied through the regulatory review process can be reduced.
Which preferences
should be included
in the sales criteria
to reduce the risk
of being denied in
the rezoning
process?
Higher Sales
Price
Certainty to
Close
Site Design
Reasonable
compromises
Clear decision-making
7Page 27 of 75
4) Mandatory Uses or Openness to Market Demand
Housing & Redevelopment Authority
Previous discussions focused on 3-4 mandatory elements for the site – housing (preferably ownership and missing
middle) – restaurant / hospitality destination – public park. This is a high bar that might not be able to be achieved
in the desired timeframe.
Narrow
Types
of
Users
Broad range of
market users
Should the sales
criteria continue to
designate these
preferred uses OR is
the HRA open to a
broader range of
proposals that might
not include a
restaurant or public
park?
8Page 28 of 75
5) Ownership Housing or Rental Housing
Housing & Redevelopment Authority
In previous discussions, the HRA expressed a very strong preference for ownership housing like townhouses,
condominiums or cooperatives. These types of projects can be challenging to finance and build. They can also
take more time to finance. These projects frequently result in a lower land price to address the additional risk to
the developer. If higher land price is desired, an openness to both ownership and rental might be more effective.
Strong
Ownership
Preference
Open to
Owners and
Renters
Should the sales
criteria continue to
designate
preferences for
ownership housing
OR is the HRA
equally open to
ownership and
rental proposals?
9Page 29 of 75
6) Encourage Complexity or Certainty
Housing & Redevelopment Authority
Highly complex and creative deals can be exciting with great potential for partnerships and unusual outcomes but
pose a higher risk to seller since they have lower certainty of securing financing and being constructed.
Complexity
•Undefined
details
•Risky deals
•Multiple
partners
Certainty
to close
transaction and
build new
project(s)
Should the sales
criteria prioritize
high complexity
and creativity OR
simplicity with an
easier path to
funded and built?
10Page 30 of 75
7) Maintain Focus amidst Innumerable Details and Trade offs
Housing & Redevelopment Authority
Big Picture
•Sell land for $
•Deliver
desirable
project
Details
•Shape & size
•Landscaping
•Materials
•Etc. etc.
How can the process
be shaped to allow
clear decision making
without second
guessing every detail?
What details are non-
negotiable?
The outcome of every redevelopment project includes countless details. Desiring to be good stewards of
the community, the details are important to the HRA. Some of the details include trade-offs that must be
carefully balanced. As the seller of land, the HRA can strive to maintain focus on the big picture goals, even
if that means accepting some relatively minor trade offs in the process. If this were an easy process, it
would have been completed already.
11Page 31 of 75
8) All Private Financing or Limited Public Financing
Housing & Redevelopment Authority
Private
Financing
•Equity
•Mortgage debt
Public
Financing
•TIF
•Grants
•Abatement
•Waivers
•Parking access
This site is known to have some limitations and characteristics that have hindered redevelopment and impacted the
purchase price. As a seller, the HRA could maximize sales revenue by providing limited and strategic public
financing or other public resources like the adjacent parking garage.
Is there any interest in
considering the use of
Public Financing tools
for a limited portion of
the project? Or should
proposals assume that
all financing (other
than grants) be
private?
12Page 32 of 75
9) How should Sales Revenue be used?
Housing & Redevelopment Authority
HRA Funds
•Easier process
•$ Limited to
HRA functions
City Funds
•More rigid
process
•Greater flexibility
to spend $
Land ownership was transferred from City to HRA to simplify the sales criteria and to create funds for future HRA
projects in Edina. If property remains in HRA ownership, the use of the sales revenue is limited to HRA functions. If
ownership of the parcel is transferred back to the City, the City has greater flexibility in the use of revenue, but the
legal standards for a sale are more rigid.
Should the sales
revenue be
directed to HRA
programs or City
programs?
How should these
funds be used?
13Page 33 of 75
10) Closing the Deal
Housing & Redevelopment Authority
Does a combination of public and
“closed” meetings allow the HRA
to select the best offer that results
in a prompt sale and prompt
redevelopment while being
transparent to the community?
Selecting the prospective buyer for publicly-owned real estate can be challenging. There are some discussions that
should (and must) be held in a public setting while other sensitive conversations with pricing details can be held in
private to maintain the leverage as a seller in a competitive environment. In addition to pre-scheduled meetings, some
additional meetings may be needed to ensure a prompt closing. Staff recommends a combination of public meetings
along with some “closed” meetings to discuss the pros and cons of purchase offers to secure the best outcome for
the community. Final decisions will take place in a public meeting open to the public.
14Page 34 of 75
Final Concerns and Suggestions
Housing & Redevelopment Authority
Are there any other preferences or
suggestions that staff should include in the
Request for Proposal that is distributed to
prospective buyers and developers?
Staff recommends issuing the Request for Proposal in the next month so that a
transaction can be pursued in the next year. The selection process will take
approximately 3 months, the sketch plan process an additional 2 months, and
“preliminary” re-zoning another 3-4 months. Additional time is needed to secure
the “final” rezoning, secure financing prepare construction plans and receive a
building permit before a traditional transaction occurs.
15Page 35 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 7.3
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Report & Recommendation Department: Community Development
Item Title: HRA 2024 Year in Review
Action Requested:
No action required; for informational purposes only.
Information/Background:
Each year, the HRA publishes a "Year in Review" document that summarizes activities conducted and
completed over the previous year. The report also includes the cumulative performance of projects
that were funded by the HRA. The data in this document is compiled from several different sources
to include details in one document.
Resources/Financial Impacts:
NA
Relationship to City Policies:
Tax Increment Financing Policy
Supporting Documentation:
1. Edina HRA year in review 2024 final draft
Page 36 of 75
HOUSING AND REDEVELOPMENT AUTHORITY
2024 - YEAR IN REVIEW
OVERVIEW
The Edina Housing and Redevelopment Authority (HRA) was established in 1974 for the purpose of undertaking
urban redevelopment projects and assisting with the development of affordable housing. The members of the Edina
City Council serve as Commissions of the Board of the HRA. The Edina City Manager serves as Executive Director
of the HRA. From time to time, additional services are provided to the HRA by City staff as part of their regular
job duties.
The HRA also uses third-party professionals to provide expertise on specific matters that require specific expertise
including the preparation of legal and financial agreements and to provide required monitoring and reporting
oversight.
This report has been prepared by City of Edina staff to highlight activities and accomplishments in the past year.
This report also contains updated project information that may shape upcoming activities and programs of the HRA.
2024 HRA COMMISSIONERS
The members of the Edina City Council also serve as the Board of Commissioners of the HRA.
• James Hovland, Chair
• Kate Agnew, Vice Chair
• James Pierce, Secretary
• Carolyn Jackson
• Julie Risser
MAJOR 2024 ACCOMPLISHMENTS
• Completed construction of First Bank & Trust regional headquarters located in the Pentagon Village site.
Although this project is in a TIF District, it was privately funded with no direct TIF support. Completed
construction of Maison Green Apartments and Starling restaurant located in the Eden Willson TIF
District. The apartment building includes 20 affordable units in addition to 176 luxury market rate units.
• Continued construction of The Finch mixed use apartments at 4620 W. 77th Street. This project will
transform a vacant office parcel into new mixed-income housing with street level commercial space and
multiple new public trail and roadway connections to Fred Richards Park. The new building will include
23 affordable housing units and an additional 110 attainable housing units. The remainder will be market-
rate. The City & HRA entered into a TIF Redevelopment Agreement to use TIF and SPARC to
supplement the private financing of this project.
Page 37 of 75
2024 Edina HRA – Year in Review Page 2
• Completed the pedestrian bridge and public sidewalk to connect the Grandview public parking garage
with the future development on the east side of the railroad tracks. This route also connects businesses
east of the railroad tracks with the existing parking garage. This project implements one of the goals of
the 2012 Grandview Framework. The project was funded by the Grandview 2 TIF District.
• Completed the final phase of roadway improvements east of Hwy 100 near the Eden & Willson
roundabout. This completes the public roadway improvements funded with revenue from the Eden
Willson TIF District.
• Delivered a study about the impact of TIF to school districts.
• Delivered a Feasibility Report regarding a potential grade-separated pedestrian route (aka underpass) in
the 7200 block of France Ave that would connect the South Cornelia and Parklawn neighborhoods with
the Centennial Lakes neighborhood.
• Closed on 25 “Come Home 2 Edina” down payment assistant mortgages of which 3 also used Edina’s First
Generation homebuying mortgage program.
• Continued the Affordable Ownership Preservation Program by assisting Homes Within Reach (aka West
Hennepin Affordable Housing Land Trust) and Twin Cities Habitat for Humanity in acquiring an additional
4 houses to be rehabilitated and placed into a 99-year ground lease. In 2023, 2 homes were completed
and sold to homeowners. This program has slowed from previous years partly due to limited inventory.
CITY STAFF SUPPORT
The HRA does not directly employ any staff. Administrative support for the HRA is carried out by members of
the City staff. These HRA duties are in addition to the other duties carried out by City staff. City staff includes:
• Scott Neal, City Manager and HRA Executive Director
• Cary Teague, Community Development Director
• Stephanie Hawkinson, Affordable Housing Development Manager
• Bill Neuendorf, Economic Development Manager
• Addison, Lewis, Community Development Coordinator
• Liz Olson, Administrative Support Specialist
• Pa Thao, Finance Director
• Nelly Chick-Brewer, Assistant Finance Director
• Chad Milner, City Engineer
Page 38 of 75
2024 Edina HRA – Year in Review Page 3
External Support, as needed
• Affordable Housing Connections – affordable housing compliance advisors
• Campbell Knutson – general legal advisors
• Dorsey & Whitney – redevelopment legal advisors
• Edina Housing Foundation – affordable housing policy advisor and manager of mortgage programs
• Ehlers Associates – financial advisors
OVERVIEW OF REDEVELOPMENT ACTIVITY
This past year was another active year in the commercial and multi-family construction industries albeit slower than
previous years. The capital markets that finance large new construction projects continued to be very as equity and
institutional investors sought out lower risk investments that delivered attractive returns. This was reflected in the
ongoing challenges to secure private financing for two large projects that the HRA pledged to support. Despite the
“pause”, several developers are still pursuing new projects to keep making progress in the future. Demand for
single-family houses continues to be good in Edina. While higher mortgage rates hindered some new buyers, the
lack of available housing supply had the most impact on single-family transactions in Edina.
Most redevelopment in Edina occurs on properties that were originally developed decades ago. The aging structures
on these properties typically have not kept pace with the needs or expectations of the current marketplace.
Most redevelopment in Edina is privately funded. The HRA does participate in project financing when the project is
determined to be unfeasible without public financial intervention and when the proposed project delivers long-term
community benefits that would not otherwise be funded in the City’s budget. Most of the 60+ major redevelopment
projects constructed since the recovery from the Great Recession have been privately funded.
TAX INCREMENT FINANCING DISTRICTS
As of year-end 2024, Edina has twelve active TIF districts. One new TIF District was established this year at 7235
France Ave. Key details of Edina’s active TIF districts are summarized below:
Name Type Size
(acres)
Year
Approved
Certification
Date
First
Collection
Expiration
Year
4040 W. 70th
Street
Special Housing,
20-years 1.58 2021 11-30-2021 2025 2045
44th and France #2 Renewal, 15-years 1.0 2018 12-21-2018 2021 2036
50th and France #2 Redevelopment,
25-years 2.8 2017 6-29-2017 2020 2045
70th and France Renewal, 15-years 5.8 2022 6-20-2022 2026 2041
72nd and France #2 Redevelopment,
25-years 5.2 2023 6-23-2023 2026 2051
Page 39 of 75
2024 Edina HRA – Year in Review Page 4
Name Type Size
(acres)
Year
Approved
Certification
Date
First
Collection
Expiration
Year
72nd and France #3 Redevelopment,
25-years 8.0 2024 Pending 2028 2053
Amundson Avenue Special Housing,
20-years 1.2 2019 3-2-2020 2022 2042
Eden Willson Redevelopment,
25-years 11.9 2021 6-20-2022 2025 2050
Grandview #2 Redevelopment,
25-years 10.8 2016 3-17-2016 2020 2045
66 West Housing – 25
years 0.9 2016 6-28-2016 2019 2044
West 76th Street Special Housing,
20-years 2.0 2018 12-21-2018 2022 2042
Pentagon Park Redevelopment,
25-years 47 2014 6-30-2014 2018 2043
In general, Edina uses TIF to a lesser extent than neighboring communities. For property taxes paid in 2024, only
1.6% of Edina’s property tax base was included in a TIF District. This value fluctuates each year as the
redevelopment sites mature. For 2024, the tax base included in the TIF Districts is approximately the same as the
two previous years and a significant decrease from 2021 (5.0%). Maps and graphs to illustrate the use of TIF in Edina
are attached as Exhibits A and B.
More detailed information regarding each TIF District is contained in the Annual Report submitted to Minnesota’s
Office of the State Auditor in July. Those reports are available upon request from the City or State.
INCREMENTAL PROPERTY TAX COLLECTIONS
Incremental property taxes are being collected in 7 of the 11 TIF Districts. The amount of incremental taxes is
calculated by Hennepin County. The amount collected in each District is summarized below. The 2023 estimates are
based on the most recent information available from Hennepin County. These figures may adjust slightly if Hennepin
County provides a final distribution.
It should be noted that these “incremental” taxes do not include the base property taxes that are distributed to
each of the taxing districts like the County, City and School Districts. Similarly, the amounts shown below do not
include other taxes paid by commercial and industrial property owners that are distributed to the State of
Minnesota and contributed into the fiscal disparity pool that is shared with other municipalities in the Twin Cities
metro region.
Page 40 of 75
2024 Edina HRA – Year in Review Page 5
TIF District Name &
Number 2019 2020 2021 2022 2023 2024
Southdale 2 (#1208-1209-
1210) INACTIVE $6,104,336 $5,751,287 $6,670,723 -$256,600* -$105,276* NA
Pentagon Park (#1211) $445,174 $380,452 $529,365 $534,592 $527,032 $1,155,959
Grandview 2 (#1212-1213) $77,768 $183,889 $534,481 $576,949 $598,588 $806,339
66 West (#1214) $610 $2,736 $15,813 $7,982 $14,111 $15,711
50th & France 2 (#1215) NA $59,476 $496,140 $607,283 $723,704 $823,409
44th & France 2 (#1216) NA NA $38,786 $219,440 $232,885.02 $254,251
70th & France (#1221) NA NA NA NA NA NA
72nd & France (#1218)
INACTIVE NA NA NA NA $320** NA
72nd & France 2 (#1223) NA NA NA NA NA NA
72nd & France #3 (#TBD) NA NA NA NA NA NA
West 76th St (#1217) NA NA NA NA $36,735 $55,588
Amundson (#1219) NA NA NA $22,698 $50,588 $54,930
4040 W. 70th Street (#
1220) NA NA NA NA NA $9,989
Eden Willson (# 1222) NA NA NA NA NA NA
* Refund of 2020 and 2021 property tax appeals.
** 72nd and France was issued $320 payment in error. The funds were returned to Hennepin County in 2023.
Source: Hennepin County Tax Increment Finance Settlement statement dated 11-26-2024
POOLED INCREMENT AVAILABLE FOR AFFORDABLE HOUSING
PROJECTS & RELATED EXPENSES
Minnesota statutes allow a portion of the incremental taxes to be pooled within or outside the boundaries of the
TIF District to support other qualified expenses. Edina’s TIF policy recommends that incremental taxes not needed
to pay debt obligations be pooled to support affordable housing and other eligible expenses in Edina. The following
table summarizes the monies currently available to pool to other projects in Edina.
TIF District Name & Number 2022 2023 2024
Southdale 2 De-certified (#1208-1209-1210) NA $257,294 $257,294
66 West (#1214) $0 * $0* $0*
West 76th St (#1217) NA $0 $0
Amundson (#1219) $22,698 $50,588 $72,333
4040 W. 70th Street (#1220) NA NA $0
* Increment anticipated to be used to repay outstanding debt to Southdale 2 rather than pooled to new affordable
housing expenses
Page 41 of 75
2024 Edina HRA – Year in Review Page 6
HRA INTERFUND LOANS
From time-to-time, funds from one HRA or City account are loaned to another account. Current interfund loans
are identified below.
Borrowed
From
Loaned
to Purpose and Date Principal
Amount Interest Status
Centennial
Lakes Fund
Grandview
2 Fund
Redevelopment planning, 7-17-
2018 $500,000 4.0 % Res. 2018-64; Active
Centennial
Lakes Fund
50th &
France #2
Fund
Building demolition and
expansion of North Parking
Ramp, 10-17-2017
$4,150,000 4.0 % HRA Res. 2017-08;
Active
Centennial
Lakes Fund
Eden
Willson
Engineering design for upcoming
roadway improvements, 9-7-
2022
$500,000 4.0 % HRA Res. 2022-09;
Active
Southdale 2
Fund
66 West
Fund
Loan to support construction of
affordable housing at 3330 W.
66th Street
$275,000 0.0 %
HRA RDA 4-5-2016;
Active; Repaying
approximately $10,000
annually since 2021
City
Construction
Fund via GO
Bond Series
2024A
Eden
Willson
Construction of Eden-Grange-
Willson intersection and
roadway improvements on
Grange, Eden and 50th
$5,375,000 5.0% HRA Res 2023-06 and
2024-04; Active
TIF NOTES ISSUED TO PRIVATE DEVELOPERS
When Edina uses Tax Increment Financing for privately owned projects, TIF Notes are usually pledged. The Notes
are payable only after successful completion of the project. This method retains the financial risk with the real estate
developer. If the project is not successfully completed, the City/HRA are not responsible for payments on the Note.
The status of current TIF Notes issued to private developers is summarized in the following table.
TIF
District
Private
Developer &
Date of
Agreement
Total
Private
Investment
Description
of Pledge
(Principal &
Interest Rate)
Status of TIF Pledge
Completion
Certificate
Issued
Note
Issued
Interest
Bearing
Paya
ble
Pentagon
Park
Solomon Real Estate
/ Hillcrest
Development dba
Pentagon Village
LLC (10-16-2018)
Approx
$20 M as of
2019 (not
including new
construction
on Lots 3 & 4
by other
developers)
Note A: $9.0
M; 6.0% 7-9-19 7-12-19
Yes
beginning
8-1-2020
Yes
Note B:
$5.4M; 6.0% 7-9-19 7-12-19
Yes
beginning
5-1-2022*
*
Yes
Note C: $3.7
M; 6.0% 7-9-19 7-12-19 No No
Page 42 of 75
2024 Edina HRA – Year in Review Page 7
TIF
District
Private
Developer &
Date of
Agreement
Total
Private
Investment
Description
of Pledge
(Principal &
Interest Rate)
Status of TIF Pledge
Completion
Certificate
Issued
Note
Issued
Interest
Bearing
Paya
ble
Solhem Companies
dba 4620 LLC (12-
20-2022)
$84.9 M est. $7.35 M; 6.0%
PENDING Pending Pending No No
Grand
view 2 NONE NA NA NA NA NA NA
66 West
Beacon Interfaith
Housing
Collaborative (4-5-
2016)
$10.5 M $550,000* 6-6-2017 NA NA NA
50th &
France 2
Buhl Investors and
Saturday Properties
dba Edina Market
Street, LLC (6-27-17)
$78.5 M $10.1 M; 6.0% 1-31-2021 1-11-
2018
Yes
Beginning
1-31-2021
Yes
44th &
France 2
Orion Investments
and United
Properties dba
Orion 4500 France,
LLC (12-18-2018)
$30.5 M $2.295 M;
5.0% 5-10-2021 5-10-
2021
Yes
beginning
5-10-2021
Yes
70th &
France
Site A: MDI France
Avenue, LLC aka
Mortenson
Development (6-30-
2022)
$138.7 M
est.
NTE $5.0 M;
4.25%
PENDING
Pending Pending No No
Sites B & C: MDI
France Avenue, LLC
aka Mortenson
Development
and/or Orion
Investments (6-30-
2022)
$115.3 M
est.
NTE $17.0 M;
4.25%
PENDING
Pending Pending No No
72nd &
France
INACTIVE
France Equities,
France Equities II
and CPEC Exchange
39560 & 39561 LLC
(4-16-2019)
$0
In default
NTE $ 12 M;
NTE 5.5% In default In
default No No
72nd &
France 2
7250 France Group,
LLC (4-18-2023)
$85.6 M
est.
NTE $7.55 M;
6.50% Pending Pending No No
Page 43 of 75
2024 Edina HRA – Year in Review Page 8
TIF
District
Private
Developer &
Date of
Agreement
Total
Private
Investment
Description
of Pledge
(Principal &
Interest Rate)
Status of TIF Pledge
Completion
Certificate
Issued
Note
Issued
Interest
Bearing
Paya
ble
72nd &
France #3
Edina Enclave, LLC
NW Lot 1 Element
(11-19-2024)
$56.8 M est. NTE $4.56 M;
6.5% Pending Pending No No
Edina Enclave, LLC
E Lot 2 Element
(11-19-2024)
$147.3 M
est.
NTE $12.34
M; 6.5% Pending Pending No No
Lifestyle
Communities, LLC
SW Lot 3 Element
(11-19-2024)
$105.85 M
est.
NTE $5.97 M;
6.5% Pending Pending No No
West 76th
St
AEON dba The
Sound on 76th
Limited Partnership
(1-14-2021)
$23.7 M $798,000;
4.25% 10-18-22 5-2-23
Yes
Beginning
5-2-23
Yes
Amund-
son NONE NA NA NA NA NA NA
4040 W.
70th Street
Lupe / Ecumen dba
4040 West 70th
Street Apartments
(4-7-2022)
$32.97 M
est
$1.503 M;
4.0%
Pending
Anticipated
2025
Anticipated
2025 Pending No
Eden
Willson
Reuter Walton dba
Eden Avenue
Group, LLC (11-3-
2021)
$84 M
est
NTE $5.1 M;
NTE 4.0%
Anticipated
2025
Anticipated
2025 Pending No
* Agreement with Beacon Interfaith was for two payments upon closing and upon completion of building shell of affordable
housing development
* * This date was inaccurately stated in the 2023 report and is corrected in 2024.
PAYMENTS MADE ON TIF NOTES
After a project is successfully completed and the project begins to pay incremental property taxes, the applicable
TIF Note becomes payable. Payments are typically made twice annually to reflect the property tax payment
structure in Hennepin County. The following table summarizes recent payments on current TIF Notes.
TIF
District Private Developer
Principal and
Interest Rate of
TIF Note
TIF Payments Made
Previous
(2020-23) 2024 Cumulative
Pentagon
Park
Solomon Real Estate /
Hillcrest Development
$9.0 M; 6.0% $319,217.83 $ 158,424.16 $477,641.99
$5.4 M; 6.0% $145,315.20 $ 86,547.70 $231,862.90
Page 44 of 75
2024 Edina HRA – Year in Review Page 9
TIF
District Private Developer
Principal and
Interest Rate of
TIF Note
TIF Payments Made
Previous
(2020-23) 2024 Cumulative
dba Pentagon Village
LLC $3.7 M; 6.0% $0 $0 $0
Solhem Cos dba 4620
LLC
$7.35M; 6.0%
PENDING NA NA NA
Grandview
2
NONE - TIF used for
public infrastructure NA NA NA NA
66 West Beacon Interfaith
Housing Collaborative NA NA NA NA
50th &
France 2
Buhl Investors and
Saturday Properties
dba Edina Market
Street, LLC
$10.1 M; 6.0% $1,149,013.30 $696,200.92 $1,845,214.22
44th &
France 2
Orion Investments and
United Properties dba
Orion 4500 France,
LLC
$2.295 M; 5.0% $319,747.91 $219,211.19 $538,959.10
70th &
France
Site A: MDI France,
LLC
NTE $5.0 M; 4.25%
PENDING NA NA NA
Site B & C: MDI
France, LLC
NTE $17.0 M;
4.25%
PENDING
NA NA NA
72nd &
France 2
Orien Investments dba
7250 France Group,
LLC
NTE $7,550,000
PENDING NA $0 $0
72nd &
France #3
Enclave Development
dba Edina Enclave, LLC
NW Lot 1 Element
NTE $4.56 M; 6.5%
PENDING NA NA NA
Edina Enclave, LLC
E Lot 2 Element
NTE $12.34 M;
6.5%
PENDING
NA NA NA
Lifestyle Communities,
LLC
SW Lot 3 Element
NTE $5.97 M; 6.5%
PENDING NA NA NA
West 76th
St
AEON dba The Sound
on 76th Limited
Partnership
$798,000; 4.25% $0 $58,075.80 $58,075.80
4040 W.
70th Street
Lupe / Ecumen dba
4040 W 70th St
Apartments LP
$1.503 M; 4.0%
PENDING $0 $0 $0
Page 45 of 75
2024 Edina HRA – Year in Review Page 10
TIF
District Private Developer
Principal and
Interest Rate of
TIF Note
TIF Payments Made
Previous
(2020-23) 2024 Cumulative
Eden
Willson
Reuter Walton dba
Eden Avenue Group,
LLC
NTE $5.1 M with
interest NTE 4.0%
PENDING
$0 $0 $0
* Per each TIF Redevelopment Agreement, payments are only due IF the property generates sufficient growth in property taxes
to make Note payments. If the property does not generate sufficient incremental property taxes, no payments are due.
OTHER INVESTMENTS MADE WITH TIF FUNDS
From time to time, the City/HRA provides financial support using “pooled” TIF funds. The use of these funds
advance community goals within the scope of the HRA. The recent and anticipated payment obligations for these
special funds are summarized in the following table.
Source
of Funds
Private Party
(Date of
Agreement)
Location and General
Description of Project and
Funding
Amount
and type Status
Southdale
2
(pooled)
AEON dba Villa
Nova Preservation
Joint Venture
(4-25-2019)
7008 Sandell – preservation of
11 units of affordable housing
$350,000
grant Completed in 2019.
MWF Properties
dba Amundson
Flats LP
(6-11-2020)
7075 Amundson Ave -
redevelopment of vacant
commercial site with 62 units
of mixed income affordable
housing; site was acquired by
HRA and resold at lower price
to make the project viable
$700,000
land write
down
Completed in 2021.
Edina Housing
Foundation
4040 W. 70th St – acquisition of
outdated office building for
redevelopment as permanent
affordable housing
$3,650,000
forgivable
loan
Acquisition completed in
2021. Project completed
in 2023.
Lupe / Ecumen dba
4040 W 70th St
Apartments LP
4040 W. 70th St – development
of 118 units of affordable
senior housing
$1,336,901
deferred
mortgage
(40-years)
Completed in 2023.
AEON dba The
Sound on 76th LP
4100 W. 76th St –
redevelopment with 70 units of
mixed-income affordable
housing
$2,400,000
deferred
mortgage
(40-years)
Completed in 2022.
Page 46 of 75
2024 Edina HRA – Year in Review Page 11
SPARC PROGRAM FUNDS
In 2021, a new program was created to attract new private investment, renew underperforming properties and
create jobs in Edina. It was created using one-time statewide legislation available to all cities. The program is known
as Special Projects and Redevelopment Capital (SPARC) Fund.
The SPARC program is funded from $9.3 million of incremental property taxes that were previously collected in the
Southdale 2, Pentagon Park and 70th & Cahill TIF Districts. No additional tax levy is required to fund this program.
In accordance with Minnesota statute, these funds can be used to support new private investment that creates
permanent or temporary jobs during the construction of a new building or renovation of an existing building. All
funds must be invested by December 31, 2025.
Source
of Funds
Private Party
(Date of
Agreement)
Location and General
Description of Project and
Funding
Amount
and type Status
Southdale
2,
continued
(pooled)
Metropolitan
Council HRA
(8-12-2021)
Funding for Family Affordable
Housing Program –acquisition
and rehabilitation of houses in
Edina which are leased at
affordable rates
$2,000,000
forgivable
loan (25-
years)
Completed in 2022.
Affordable Housing
Trust Fund
To support Affordable
Ownership Preservation
Program
$1,200,000 Committed to Twin Cities
Habitat for Humanity
Pentagon
Park
(Pooled)
Solhem Companies
dba 4620 LLC
(12-20-2022)
Redevelopment of vacant office
building with new 276 unit
apartment, of which 28 units are
affordable and an additional 100
units of “attainable” housing
included.
$7.35 MM Under construction
Private Party
(Date of
Agreement)
Description of Project and
Funding
Amount and
type Status
Mann Theatres dba
Brainerd
Entertainment aka
Edina Theaters
(9-7-2022)
3911 W. 50th St –$2.5M privately financed
complete renovation of vacant theater
including historic sign; HRA funds
forgivable after Mann initiates the lease
renewal option; partially forgivable if lease
terminated earlier
$351,000
forgivable loan
Project complete; theater
reopened 10-1-2022; Loan
funds issued Dec 2022
Page 47 of 75
2024 Edina HRA – Year in Review Page 12
Private Party
(Date of
Agreement)
Description of Project and
Funding
Amount and
type Status
The HRA completed public improvements
to sidewalks and the parking garage to
align with the reopening of the theater.
$450,000 Public infrastructure work
completed
Edina Chamber of
Commerce aka
Edina Innovation
Lab (11-17-2022)
7201 Metro Blvd – Up to $800k for
construction build-out of vacant office
space; partially forgivable if private
fundraising and MBE / WBE goals achieved
$610,767 loan
with up to
$250k forgivable
Occupancy in September
2023
Solhem Companies
dba 4620 LLC
(12-20-2022)
4620 W. 77th St – Redevelopment of
vacant office building with new 276 unit
apartment project priced for mixed-
incomes. Site work includes construction
of a new public roadway that connects W
77th St to the rear parking area and to
Fred Richards Park
$2.0 M
forgivable loan
as needed for
construction of
public roadway
Construction began in 2023.
Buhl Investors dba
Buhl 3906 , LLC
3916 W. 50th Street (lower level) –
Remodeling of vacant lower level
commercial space to attract new
restaurant with live music venue. Shell
building needs handicapped accessible lift
and other core improvements to allow
the lower level space to be occupied by a
new business.
$225,000
forgivable loan
TBD
Owner is negotiating final
lease terms with prospective
tenant; construction
anticipated 2025. Funds only
provided after project is
confirmed to proceed.
The HRA was authorized to make public
improvements to adjacent sidewalks and
public areas to align with the re-
occupancy of the vacant space.
$150,000 Pending
Oh Crepe, LLC (5-
16-2024)
Renovate vacant tenant space at 4408
France Avenue for new café with ADA
entrance and energy efficient storefront
glazing
$18,767 grant Completed
Arbor Properties,
dba Sunnyside
Properties (5-16-
2024)
Repave parking lot at 4408 France Avenue
for new café to improve ADA parking and
access to rear doorways
$24,000 grant Pending
Enclave Edina, LLC
and Lifestyle
Communities, LLC
(11-19-2024)
7235 France Ave – redevelop the site with
four new mixed-use buildings. SPARC
funds may be provided to offset the
principal amount of TIF Notes pledged to
the site.
Up to $1.5
million
forgivable loan
Pending
Page 48 of 75
2024 Edina HRA – Year in Review Page 13
MAJOR CONSTRUCTION CONTRACTS ISSUED
From time to time, the City/HRA issues public debt and/or construction contracts related to redevelopment efforts
in TIF Districts. Depending on the scope of work, contracts for professional services like engineering, architecture
and construction administration are also awarded. The recent and anticipated payment obligations of the Grandview
2 and Eden-Willson TIF Districts are summarized in the following table. No such obligations have been made from
the other TIF Districts.
TIF SPENDING – BUDGET VERSUS ACTUAL
When a TIF District is established, a budget is created based on the purpose and objectives of the individual TIF
District. The budget categories are established by the State of Minnesota. The budget amounts for each line item are
estimates only. The actual amount spent can be shifted among these line items provided that the total cumulative
expenditures do not exceed the total amount of the approved budget. The budgets of the active TIF Districts are
summarized in the following table. Four of the TIF Districts (70th and France, 72nd & France 2, and Eden/Willson)
have not begun to collect increment and have not incurred Project Costs per the OSA reporting methodology.
Details can be found in the TIF Reports submitted to the Minnesota Office of the State Auditor (OSA) each
summer.
Private Party
(Date of
Agreement)
Description of Project and
Funding
Amount and
type Status
France Property
Partners
(TBD)
7200 France Ave – redevelop the site with
new apartment building with 15 units that
are permanently affordable. SPARC
financing awarded.
Up to
$4,862,458
forgivable loan
Pending
TIF
District
Private
Contractor (Name
& City)
Description of Work Contract
Amount
Date of
Contract Status
Eden
Willson
S. M. Hentges &
Sons, Inc (Jordan,
MN)
50th St and Grange Rd improvements
(ENG 24-5) $2,694,184 3-14-2024
Completed
SEH Construction administration for ENG
24-5 (50th St and Grange Rd) $247,400 5-16-2024 Completed
Page 49 of 75
2024 Edina HRA – Year in Review Page 14
TIF
District
(Approved
Date)
Approved TIF Plan Budget Cumulative
Project
Costs
(July 2023 OSA
report, Line
21)
TIF
Project
Costs
(Sub-Total)
Spending Categories for
Project Costs
Interest
Cost
Maximum
Total
Costs
Southdale
2 Inactive
(4-17-2012 to
9-9-2021)
32,448,409
Land/Building Acquisition; Site
Improvements / Preparation; Affordable
Housing; Utilities; Other Qualifying
Improvements; Administrative Costs 1,500,000 33,948,409 $11,619,585
(34% of Max)
Pentagon
Park
(2-18-2014)
90,545,791
Land/Building Acquisition; Site
Improvements / Preparation; Utilities;
Other Qualifying Improvements;
Administrative Costs 80,032,553 170,578,344 $18,345,243
(11% of Max)
Grandview
2
(3-2-2016)
21,170.290
Land/Building Acquisition; Site
Improvements / Preparation; Utilities;
Other Qualifying Improvements;
Administrative Costs 14,556,934 35,727,224 $8,547,405
(24% of Max)
66 West
(4-5-2016) 597,575
Site Improvements / Preparation; Other
Qualifying Improvements;
Administrative Costs
0 597,575 $282,584
(47% of Max)
50th &
France 2
(6-20-2017)
16,692,088
Land/Building Acquisition; Site
Improvements / Preparation; Utilities;
Other Qualifying Improvements (public
parking); Administrative Costs
14,679,657 31,371,745 $14,681,385
(47% of Max)
44th &
France 2
(10-16-2018
2,884,407
Site Improvements / Preparation;
Affordable Housing; Utilities; Other
Qualifying Improvements (public
parking); Administrative Costs
1,200,366 4,084,773 $2,322,996
(57% of Max)
70th &
France 28,957,256
Land/Building Acquisition; Site
Improvements / Preparation; Utilities;
Other Qualifying Improvements (public
parking); Administrative Costs
10,604,929 39,562,185 NA
72nd &
France
(3-19-2019)
DE-
CERTIFIED
17,675,232
Land/Building Acquisition; Site
Improvements / Preparation; Affordable
Housing; Utilities; Other Qualifying
Improvements; Administrative Costs
10,734,901 28,410,133 $0
Page 50 of 75
2024 Edina HRA – Year in Review Page 15
TIF
District
(Approved
Date)
Approved TIF Plan Budget Cumulative
Project
Costs
(July 2023 OSA
report, Line
21)
TIF
Project
Costs
(Sub-Total)
Spending Categories for
Project Costs
Interest
Cost
Maximum
Total
Costs
72nd &
France 2
(4-18-2023)
16,870,078
Land/Building Acquisition; Site
Improvements / Preparation; Affordable
Housing; Utilities; Other Qualifying
Improvements; Administrative Costs
17,093,380 33,963,458 NA
72nd &
France #3
(date TBD)
$41,443,283
Land/Building Acquisition; Site
Improvements / Preparation; Affordable
Housing; Utilities; Other Qualifying
Improvements; Administrative Costs
$39,539,652 $80,892,935 NA
West 76th
Street
(11-20-2018)
1,400,626
Affordable Housing; Administrative
Costs 759,752 2,160,378 $799,182
(37% of Max)
Amundson
(12-17-2019) 1,153,434 Affordable Housing; Administrative
Costs 549,767 1,703,200 $1,489
(0% of Max)
4040 W.
70th Street
(8-4-2021)
3,392,149 Affordable Housing; Administrative
Costs 0 3,392,149 $0
Eden
Willson
(11-3-2021)
14,934,231
Land/Building Acquisition; Site
Improvements / Preparation; Affordable
Housing; Utilities; Other Qualifying
Improvements; Administrative Costs
7,801,038 22,735,269 NA
Page 51 of 75
2024 Edina HRA – Year in Review Page 16
PUBLIC BENEFITS DELIVERED WITH TIF REDEVELOPMENT
Edina’s TIF policy does not intend to use TIF merely to encourage private investment. Instead, TIF is considered
when the completed project can deliver measurable long-term benefits to the general public in Edina. The table
below summarizes some of key public benefits delivered with TIF.
X = Complete P = Pending
TIF District
Name
Type of Public Benefits Delivered Increase Property Tax Base Stimulate reinvestment in other properties Remove substandard buildings Environmental Remediation Job Creation Affordable Housing Public Parking Public Roadway Improvements Utility Improvements Streetscape Improvements Bike / Ped Improvements Other Roadway Improvements Plaza or Green Space Public Art Other Southdale 2
(De-certified) X X X
Pentagon Park P P X X P X X X X X
Grandview 2 X X X X X X X X X
66 West X X X
50th & France 2 X X X X X X X X X X X X
44th & France 2 X X X X X X X X X
70th & France P P X X P P P P P P P P
72nd & France 2 P X X P P P P P P P
72nd & France
#3 P P P P P P P P P P P P
West 76th St X X X X
Amundson X X X X X
4040 W. 70th
Street X X X X X
Eden Willson X X X X X X X X X X
Page 52 of 75
2024 Edina HRA – Year in Review Page 17
TIF FUND BALANCE
Edina creates a separate account or “fund” to accurately monitor the revenues and expenses of each TIF District.
After TIF Districts are decertified, remaining funds (if any) are returned to Hennepin County for redistribution to
the City, School District and County. For some older TIF Districts (Centennial Lakes and 70th & Cahill), Minnesota
Statutes allow the fund balance to remain in the TIF Fund to support additional redevelopment efforts. In 2021, new
Minnesota legislation allowed fund balances to be retained for future expenditures that follow the adopted Spending
Plan. The most recent and previous years audited fund balances are shown below.
TIF District Name
& Number
12/31/2020
Balance
(audited)
12/31/2021
Balance
(audited)
12/31/2022
Balance
(audited)
12/31/2023
Balance
(audited)
Notes
Centennial Lakes
(#1203) Inactive $7,346,662 $7,348,337 $7,227,247 $6,610,150
Decertified in 2014; older
district allowed to retain
balance for other
improvements; $5.15 M of the
balance was used for interfund
loans and is pending future
repayment
70th & Cahill /
Wooddale Valleyview
(#1207) INACTIVE
$344,479 $342,892 $0 $0
Decertified in 1999; older
district allowed to retain
balance for other
improvements
Southdale 2 (#1208-
1209-1210)
Decertified
$16,328,679 $24,234,205 $11,265,673 $11,741,844
Decertified 12/31/2021; MN
legislation allows balance to be
used for affordable housing
and other improvements
(SPARC) through 12/31/2025
Pentagon Park
(#1211) $696,099 $1,203,637 $682,760 $968,286
Grandview 2 (#1212-
1213) $498,072 $7,178,912 $3,235,330 $1,119,052 Includes revenue issued with
2021 bond
66 West (#1214) $23,808 $25,844 $23,310 $1,461 Subject to interfund loan
repayment
50th & France 2
(#1215) $52,088 $254,042 $337,634 $439,721 Subject to interfund loan
repayment
44th & France 2 NA $16,207 7,307 $22,056
70th & France NA NA NA NA First collection anticipated in
2025
72nd & France 2 NA NA NA NA First collection anticipated in
2026
72nd & France #3 NA NA NA NA First collection anticipated
_______
West 76th St (#1217) $11,093 $10 $0 $4,077
Amundson $0 $0 $21,894 $72,333
Intended to be pooled for
future affordable housing
project
4040 W. 70th Street NA NA NA NA First collection anticipated in
2025
Eden Willson NA NA $447,110 -$2,436,006
First collection anticipated in
2025; includes debt obligation
for intersection construction
Sources: City of Edina 2020 CAFR (page 105); 2021 CAFR (page 106); 2022 CAFR (page 107); 2023 ACFR (pages 118-119)
Page 53 of 75
2024 Edina HRA – Year in Review Page 18
SPARC PROGRAM SUMMARY OF LOANS AND GRANTS
The SPARC program began in 2021 with a balance of $9.3 million generated by the Southdale 2 TIF District. Funds
can be issued as a direct expenditure, traditional loan, forgivable loan, or grant.
Project
(date approved)
Brief Description
& Status
Funding
Amount
Max.
Amount
Forgivable
(actual)
Amount Repaid
Balance
Due 2024 Cumulative
Mann Theatres
dba Brainerd
Entertainment,
LLC (9-7-
2022)
Restoration of Edina
Theater at 3911 W.
50th St; up to
$351,000 pledged at
4.0% unless forgiven
in year 6 of the lease
$351,000 $351,000
(TBD) $0 $0 TBD
Edina Chamber
of Commerce
dba Edina
Innovation Lab
(11-17-2022)
Construction of
Edina Innovation Lab
at 7201 Metro Blvd
up to $800k pledged
at 2.0% interest
unless partially
forgiven by YEAR -
completed
December 2023
$650,767
$250,000
($100,980.50
to date)
$88,691.16 $88,691.16
$469,222.87
Buhl Investors
dba Buhl 3906,
LLC
(11-16-2023)
Construction loan
for renovation of
vacant commercial
space at 3916 W.
50th St. – up to $225k
pledged; forgivable if
terms satisfied –
project is in pre-
development phase
and anticipated to
proceed in 2024
TBD TBD TBD TBD TBD
Oh Crepe,
LLC
(5-16-2024)
Renovate vacant
tenant space at 4408
France Avenue for
new café with ADA
entrance and energy
efficient storefront
glazing
$18,767 $18,767 NA NA NA
Arbor
Properties, dba
Sunnyside
Properties
(5-16-2024)
Repave parking lot at
4408 France Avenue
for new café to
improve ADA
parking and access to
rear doorways
Up to
$24,000 Pending NA NA NA
Page 54 of 75
2024 Edina HRA – Year in Review Page 19
Project
(date approved)
Brief Description
& Status
Funding
Amount
Max.
Amount
Forgivable
(actual)
Amount Repaid
Balance
Due 2024 Cumulative
Enclave Edina,
LLC and
Lifestyle
Communities,
LLC
(11-19-2024)
7235 France Ave –
redevelop the site
with four new mixed-
use buildings. SPARC
funds may be
provided to offset
the principal amount
of TIF Notes pledged
to the site.
Up to $1.5
million
Up to $1.5
million NA NA NA
France
Property
Partners
(TBD)
7200 France Ave –
redevelop the site
with new apartment
building with 15 units
that are permanently
affordable. SPARC
pledged in lieu of TIF.
Up to
$4,862,458
Up to
$4,862,458 NA NA NA
Solhem
Companies
dba 4620
LLC (12-
20-2022)
4620 W. 77th St –
Redevelopment of
vacant office building
with new 276 unit
apartment project
priced for mixed-
incomes. Site work
includes construction
of a new public
roadway that
connects W 77th St
to the rear parking
area and to Fred
Richards Park
$2.0 M $2.0 M NA NA NA
Page 55 of 75
2024 Edina HRA – Year in Review Page 20
AFFORDABLE HOUSING TRUST FUND
In 2019 the City Council approved the Affordable Housing Trust Fund Ordinance. This formally designated that the
buy-In funds from the Affordable Housing Policy be used exclusively to support affordable housing efforts to serve
low and moderate income renters and homeowners in Edina. As of the end of 2024, a cumulative amount of
$9,660,000 was contributed to the Trust Fund through buy-in contributions from five multi-family developments.
About 81% of these funds have been invested or allocated to a variety of programs described below. These
programs and developments support the creation and preservation of affordable housing in Edina. A map of the
general locations of affordable housing is included in Attachment E.
Buy-In Funds
Received Funds Awarded
REVENUE
The Loden Apartments - 2018 $2,000,000
The Lorient Apartments – 2019 $160,000
The Bower Apartments – 2021 $1,900,000
4425 Valley View Apartments - 2021 $300,000
The Fred Apartments (4660 W. 77th St) - 2022 $4,100,000
Transfer From Southdale II Pooled $1,200,000
Cumulative Assets = $ 9,660,000
EXPENSES
Nolan Mains affordable unit loan - 2019 ($750,000)
Property Tax 4d NOAH* and Resilient Homes Program ($210,000)
425 Jefferson Acquisition ($152,717)
Home Rehabilitation Program ($1,500,000)
Affordable Ownership Preservation Program - HWR ($3,300,000)
Affordable Ownership Preservation Program - TCHFH ($1,800,000)
First Generation Mortgage Program (EHF) – 2022 ($150,000)
Ending Balance = $ 1,797,283
* Naturally Occurring Affordable Housing (NOAH) apartments
HWR = Homes Within Reach
TCHFH – Twin Cities Habitat for Humanity
Page 56 of 75
2024 Edina HRA – Year in Review Page 21
AFFORDABLE HOUSING UNITS DELIVERED
(with Direct or Indirect HRA Involvement 2012 to Present)
TIF
District Project Name & Address
No.
Market
Units
No.
Affordable
Units
Notes
Southdale
2
Aurora on France Senior
Housing
(6500 France)
182 10
5.5% are affordable at 30% AMI. These were
agreed to prior to a formal policy. Project
was privately funded with no TIF.
The Millennium Apartments
(3250 W. 66th St) 216 11
4.9% are affordable at 60% AMI. These were
agreed to prior to a formal policy. Project
was privately funded with no TIF.
Pentagon
Park
The Eddi Apartments
(4911 W. 77th) 180 20 10% affordable at 50% AMI for 20-years.
Project was privately funded with no TIF.
The Finch Apartments
(4620 W. 77th St)
248
Pending
28
Pending
10% are affordable at 50% AMI. An additional
40% will be targeted with rents not to exceed
120% AMI for 20-years. The remaining 50% of
units are anticipated to have rent limited to
120% AMI but could increase in response to
increasing expenditures
Grand-
view 2
Avidor Apartments
(5220 Eden Ave) 147 18 11% affordable at 60% of AMI. Project was
privately funded with no TIF.
66 West 66 West Apartments
(3330 W. 66th St) 0 39 100% of units are affordable.
50th &
France 2
Nolan Mains Apartments
(3945 Market St) 90 10 15-year term
44th &
France 2
Lorient Apartments
(3901 Sunnyside Rd) 44 3 20-year term.
72nd &
France #2
7200 France Apartments
(7200 France) 135 15
A 150 unit apartment building is anticipated
for the 7200 parcel. The affordable will have
permanent affordability.
72nd &
France #3
Future NW Enclave
Apartments
111
Pending
13
Pending A mixed-use apartment building is anticipated.
Future East Enclave
Apartments
359
Pending
40
Pending
A pair of mixed-use apartment building is
anticipated.
Future SW Lifestyle
Condominiums
43
Pending
5
Pending
A mixed-use condominium building is
anticipated.
West 76th
St
The Sound on 76th Apartments
(4100 W. 76th St) 0 70 100% of units are affordable for 40-years or
more.
Amund-
son
Amundson Flats
(7075 Amundson Ave) 0 62 100% affordable for 40-years or more.
4040 W.
70th Street
Forty Forty Flats Senior
Apartments (4040 W. 70th St) 0 118
100% affordable for 99-years. Construction
commenced in 2022; completed in2023.
Page 57 of 75
2024 Edina HRA – Year in Review Page 22
TIF
District Project Name & Address
No.
Market
Units
No.
Affordable
Units
Notes
Eden
Wilson
Maison Green Apartments
(4917 Eden Ave.)
176
20
Priced at 50% AMI households; 25-year term;
Completed in 2024
REDEVELOPMENT PROJECTS – YEAR END STATUS
1) 4500 France Avenue – The Lorient Apartments
The HRA entered into a Redevelopment Agreement in 2018 and issued a $2.295 million TIF Note after the
$30.5 million redevelopment project was completed. The HRA determined that the “but for” the use of TIF,
this project would not be built.
The new four-story building named The Lorient Apartments includes 45 apartments (of which three are
affordable to households with incomes at or below 60 percent of AMI) with approximately 7,000 square feet of
commercial space on the first floor. The project also delivered several infrastructure improvements in the
commercial node: public plaza, public parking, public art, removal of overhead power lines and new public
sidewalks with streetscape improvements.
The TIF Certificate of Completion was issued in Spring 2021. Payments toward the TIF Note began in 2021.
2) 3940 Market Street – North Ramp
This HRA led project was completed in Fall 2018 at a total estimated cost of $12 million. Real estate proceeds
and monies from the Centennial Lakes TIF fund were used to fund the capital investment. The final project
includes 546 public parking stalls as well as 10,000 square feet of commercial space. The commercial space was
sold to a private owner in 2019.
3) 3945 Market Street – Nolan Mains / Center Ramp
This formerly HRA-owned property was sold to a private developer in 2018 for construction of 100 rental
apartments, 27,000 square feet of commercial space and reconstruction of the new Center Parking Ramp at a
total cost of $74 million. Named Nolan Mains, the building is configured around a series of public walkways and
plazas to create a vibrant pedestrian experience that engages the adjacent commercial properties. The project
also includes shared trash rooms for use by adjacent businesses and extensive utility improvements that benefit
surrounding commercial properties.
The HRA issued a $10.1 million TIF Note upon completion. Payments toward the TIF Note began in 2021.
With the support of the Edina Housing Foundation, the HRA also provided a low-interest loan to support 10
affordable rental units in the facility for a period of at least 15 years.
The TIF Certificate of Completion was issued in 2020. Beginning in 2022, a seasonal series of business and
community events were held in the public plaza.
Page 58 of 75
2024 Edina HRA – Year in Review Page 23
4) 5146 Eden Avenue – former Public Works site
A variety of different concepts have been explored for this vacant 3-acre site. It remains available for
redevelopment. It has been used as a staging area for City construction projects until it is sold. A new
developer(s) will be pursued in 2025.
5) Southdale Center Mall
Major renovations and improvements to the Southdale Center Mall were the impetus for the Southdale 2 TIF
District that was established in 2011. After several major improvements and additions were made to the
property, that TIF District was de-certified in 2021.
With positive momentum continuing, the mall owner began work on two major improvements in 2023. The
former Herberger site (originally Donaldson’s) was reconfigured to accommodate new tenants. In 2024, a new
Kowalski’s grocery store, a new PuttShack restaurant with mini-golf and a new Peoples Organics restaurant
opened for business.
In 2024, progress continued on the reconfiguration of several outward-facing tenant spaces to better
accommodate a slate of new luxury retail tenants. Many new retailers have been announced and that wing is
anticipated to open for business in 2025.
6) 7001 France Avenue
Orion Investment and Mortenson Development secured entitlements to redevelop the 5.7-acre site with a
mixture of commercial and residential uses. The HRA determined that the “but for” the use of TIF, this project
would not be built. A 15-year TIF District was created and TIF Redevelopment Agreements were executed for
the office and residential phases in 2022.
The new US Bank branch opened for business in Spring 2023. The developer removed the last building from
the site in summer 2023 and continues to pursue full financing to begin the office and residential buildings
which are tentatively called 70th & France. The rapidly escalating interest rates and stagnation in the capital
markets delayed the groundbreaking that was originally scheduled for Summer 2023.
The City, HRA and developer amended the TIF Agreements to allow two additional years to begin the office
and residential phases. With the unpredictable changes in the capital markets, other amendments to the TIF
Agreements might be necessary in the future.
7) 7200 - 7250 France Avenue
Several proposals for this site failed to move forward over the past 8 years. During 2020-2021, the buildings
became heavily vandalized and the 7250 building was declared unsafe to occupy due to significant structural
deficiencies. In 2022, the HRA recognized the blighted condition of the two vacant office buildings. That same
year, the new owners demolished the vacant buildings and secured the site.
Edina-based Orion Investments secured preliminary rezoning for the property including a new office building
on the 7250 site and a new residential building on the 7200 site. The HRA determined that the “but for” the
use of TIF, this project would not be built. Due to the high cost of the public realm improvements on the site,
Page 59 of 75
2024 Edina HRA – Year in Review Page 24
the HRA agreed to reimburse the developer for eligible expenses using incremental property taxes generated
by the new buildings.
In 2023, the original Housing TIF District was de-certified and replaced with a new Redevelopment TIF District.
A TIF Redevelopment Agreement was executed for the new site work and new office building.
After initial difficulties, the developer secured a lead office tenant and secured debt and equity financing for
7250 in late 2024. Construction is expected to begin in early 2025.
Also in 2024, Orion partnered with Afton Park Development to finalize plans for the 7200 site. Due to
escalated costs, the HRA agreed to provide $4.8 million in SPARC funding to deliver the new 150-unit
residential building. The developer is pursuing full funding in 2025.
8) 7235 France Avenue
In 2023, Enclave Development began to explore redevelopment concepts of the Macy’s Furniture site. This past
year, the developer secured land use entitlements to subdivide the 8-acre property to accommodate four new
buildings surrounded by new public spaces.
In 2024, Enclave Development teamed with Lifestyle Communities to plan for three new mixed-use apartment
buildings and one mixed-use high rise condominium building. The site plan is intended to complement the
adjacent Promenade Park with a combination of landscaped areas and hardscaped plaza areas. The site plan also
accommodates a potential pedestrian underpass that could connect the South Cornelia and Parklawn
neighborhoods with the Centennial Lakes neighborhood. The feasibility of this potential infrastructure project
is being explored and wiill be considered by the City in the future.
Due to the high costs associated with the redevelopment project, the HRA determined that “but for” the use
of TIF, this project would not be built. The HRA entered into a Redevelopment Agreements and pledged to
issue TIF Notes upon the completion of each phase.
The development team intends to close on the real estate transaction and secure financing in 2025.
9) France Avenue Pedestrian Crossing
With two parcels likely to be redeveloped in the same period, City staff explored options to extend the
Promenade trail system to connect neighborhoods on the west side of France Avenue via a non-motorized
bicyclist/pedestrian trail that passes below or above France Avenue. In 2023, a below-grade layout was selected
as the preferred option although an overhead design will be considered if the preferred design is determined to
be unfeasible.
In 2024, City staff hired LHB Inc to prepare a feasibility study focused on design and engineering aspects of the
underpass. That report found that an underpass is generally feasible and constructable in this location with an
estimated cost of $19.5 million.
In 2025, the underpass concept will be refined so that the total cost and usability can be better understood.
While TIF funds could pay for a portion of costs, additional federal, state and regional funding sources will also
be pursued. This remains a ‘concept’ only. In the near future, the City will determine whether or not to
construct the project.
Page 60 of 75
2024 Edina HRA – Year in Review Page 25
10) Forty-Forty Flats Senior Apartments - 4040 West 70th Street
This 118 unit senior affordable development is fully leased. A TIF Note is anticipated to be awarded in 2025.
11) 4100 West 76th Street – The Sound on 76
This development is fully leased. A TIF Note was issued in 2023, with payments on the TIF Note beginning
in 2024.
12) Pentagon Village - W. 77th St. and Computer Ave. (aka Pentagon South)
The HRA executed a Redevelopment Agreement with the developer to support complete redevelopment of
the 12-acre property. The infrastructure (roadways, structured parking and plaza) and retail buildings were
completed in 2019 and three TIF notes were issued with a total principal amount of $18.1 million. Interest
began to accrue on the first Note in 2020 and the second TIF Note in 2022. The first payments on the TIF
Notes were made in 2022.
In 2024, the pair of retail buildings were fully occupied and stabilized.
Construction on the Eddi Apartments on Lot 3 (SE corner) was fully completed in 2024. This project
includes 200 rental apartments, 10% of which are priced to households earning 50% AMI. This project is
also unique because it incorporated a modular construction process which had the majority of the building
constructed off-site and shipped to the property to be assembled and finished.
The dual brand hotel expected for Lot 2 experienced setbacks in 2023 and 2024. After pandemic-related
delays, the general contractor and owner are engaged in a contract dispute. This dispute appears to have
stalled the project permanently.
Construction of a new regional bank headquarters for First Bank & Trust was completed on Lot 4 (NE
corner) in 2024.
The developer continues to pursue users for Lot 5. This was originally intended to be a two-phase Class A
office building. Based on the disruption in the office market, the developer is exploring other uses for the
vacant site to expedite the redevelopment of the site.
13) The Fred Apartments - 4660 W. 77th St (aka Pentagon North)
Construction of the new apartments at 4660 W. 77th Street was completed in 2023. The project, named
The Fred was delivered and leased in three phases. This project redeveloped the site by removing two
vacant office buildings and constructing 408 units of market-rate apartments.
While this property is located within the Pentagon Park TIF District, this project was privately financed with
no HRA participation.
14) The Finch Apartments - 4620 W. 77th St (aka Pentagon North)
In late 2023, Solhem Companies broke ground on a new 276-unit apartment building called The Finch.
Commercial spaces are located on portions of the street level.
Page 61 of 75
2024 Edina HRA – Year in Review Page 26
The site plan includes several connections from W. 77th Street to the adjacent Fred Richards Park, including
a new roadway that provides direct access to the Fred Richards Park as well as the adjacent residential and
office properties on W. 77th Street. The project is on track for completion in 2025.
15) Maison Green Apartments – 4917 Eden Ave.
The HRA entered into a TIF Redevelopment Agreement with Reuter Walton to assist redevelopment of a
commercial building and to deliver improvements to the surrounding roadways. The new building includes
primarily market-rate units and also includes 20 units priced at rates affordable to households earning 50%
of AMI. The HRA determined that the “but for” the use of TIF, this project would not be built.
The $85 million dollar project was completed in 2024 and has begun leasing. After all costs are confirmed,
the HRA will issue a $5.1 million TIF Note that is payable over 15 years from a portion of the incremental
taxes generated by the completed project. The additional incremental taxes are intended to fund public
improvements to Eden Ave, Grange Road, Willson/Grange/Eden intersection and W. 50th Street. The final
phase of road improvements was completed in 2024.
OTHER HRA-RELATED PROGRAMS
1) Small Business Streamlined Grant Program (SPARC)
In 2024, a new grant program was established to support the renovation and occupancy of commercial
storefront businesses. Grants up to $24,000 can be provide, if needed. Funds can be used for physical
renovations to the property that will be permanent in nature.
2) Edina BIG Innovation Lab
The Chamber of Commerce created the Innovation Lab to support established businesses as they seek to grow
and evolve for continued prosperity. SPARC funds were provided to construct a new space to deliver the in-
person programming. While 4 co-hort groups have been successfully completed, the funding for ongoing
operations has been challenging. In mid-year, the Lab was spun off from the Chamber as a separate business
entity with the same general mission and purpose. Plans are underway for continued operations in 2025 and
beyond.
3) Elevate Hennepin Business Advising Program
The HRA partners with Hennepin County to provide free business consulting services for start-up businesses
or expanding businesses located within Edina. Branded as “Elevate Hennepin”, these services are also provided
to Edina residents regardless of where the business may eventually be located. The $10,000 annual
contribution from the HRA supplements funding provided from Hennepin County.
4) Emergency Rental Assistance Program
The HRA has supported the VEAP sponsored Emergency Rental Assistance Program since 2020. In 2024
LAHA funds were allocated for the continuation of this program. This program is administered by VEAP.
Page 62 of 75
2024 Edina HRA – Year in Review Page 27
5) Come Home to Edina Down Payment Assistance Program
The Come Home 2 Edina program is sponsored and managed by the Edina Housing Foundation. In 2024, this
program provided loans to 25 homeowners. A related program is the First Generation Mortgage Program,
created in 2021 to assist home-buyers who have not benefitted from growing up in owner occupied homes.
Funded with monies from the Affordable Housing Trust Fund and the Edina Housing Foundation, the First
Generation homebuying program provides an additional $20,000 in a forgivable loan to first generation
homebuyers. This program served an additional three borrowers in 2024 for a total of 12 borrowers since
inception.
6) NOAH 4d Preservation Program
This program was created to incentivize owners of existing naturally occurring affordable rental housing
(NOAH) to preserve the affordability of the units. Owners are offered a reduced property tax classification
(4d) if they partner with Edina’s Energy Efficiency Program to make improvements to the property intended to
save energy and reduce operating costs. No new apartment owners applied for this program in 2024 despite
outreach efforts.
7) Home Rehabilitation Program
This program was established to provide loans up to $30,000 to provide essential improvements to a home
that is owner-occupied by a household of limited income. Repayment is deferred until the owner sells the
property but no longer than 30 years. In 2024, only four new properties were approved to participate in this
program. Edina partners with Center for Energy and Environment to administer this program.
8) Housing Improvement Area (HIA) Program
Although not funded by the HRA, the City established Edina’s first Housing Improvement Area (HIA) to
support the renovation of the Edina West Condominiums located at 6075 to 6115 Lincoln Drive. In December
Bonds were sold to repay the construction loan and associated redevelopment expenses.
9) Affordable Home Ownership Preservation Program
Homes Within Reach (aka West Hennepin Affordable Housing Land Trust) and Twin Cities Habitat for
Humanity in acquiring an additional 4 houses to be rehabilitated and placed into a 99-year ground lease. In
2023, 2 homes were completed and sold to homeowners.
Prepared January 10, 2025
Page 63 of 75
2024 Edina HRA – Year in Review Page 28
Appendix A – Map of Active TIF Districts
Page 64 of 75
2024 Edina HRA – Year in Review Page 29
Attachment B – Use of TIF in Edina
Page 65 of 75
2024 Edina HRA – Year in Review Page 30
Attachment C – Tax Base Growth in TIF Districts
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Pre-TIF Post-TIF
$229,691
$3,581,728
Centennial Lakes District Tax Capacity
15.6x Growth during TIF period
(1988 to 2013)
Page 66 of 75
2024 Edina HRA – Year in Review Page 31
Attachment C, continued
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Pre-TIF Post-TIF
$22,872
$787,409
Grandview District Tax Capacity
34.4x Growth during TIF period
(1984 to 2013)
Page 67 of 75
2024 Edina HRA – Year in Review Page 32
Attachment C, continued
$57,986
$889,934
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Orig Tax Capacity Current Net Tax Capacity
50th & France 2 District
Tax Capacity
15.3x Growth 2017 to 2023
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Orig Tax Capacity Current Net Tax Capacity
Page 68 of 75
2024 Edina HRA – Year in Review Page 33
Attachment C, continued
$29,735
$277,735
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Orig Tax Capacity Current Net Tax Capacity
44th & France 2 District
Tax Capacity
9.3x Growth 2019 to 2023
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2017 2018 2019 2020 2021 2022 2023
Orig Tax Capacity Current Net Tax Capacity
Page 69 of 75
2024 Edina HRA – Year in Review Page 34
Attachment D - Progress Made toward Affordable Housing in Edina
This chart summarizes the number of affordable housing units delivered since 2004. Significant progress has been
made since Edina officially adopted an Affordable Housing Policy in 2015.
This chart illustrates the number of affordable housing units granted zoning approvals by City Council since 2004.
Not all entitled projects are able to secure funding and do not get built. Other projects have been approved but
have not yet been completed.
Page 70 of 75
2024 Edina HRA – Year in Review Page 35
Attachment E – Map of Affordable Housing Locations
Page 71 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Discussion
Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 8.1
Prepared By: Scott Neal, City Manager
Item Type: Other Department: Community Development
Item Title: Topics for HRA Discussion in 2025
Action Requested:
No action required; for informational and discussion purposes only.
Information/Background:
In the past several months, members of the HRA Board have inquired and commented about current
policies and procedures of the HRA. In the upcoming year, staff recommends conducting some of the
regular scheduled HRA meetings as work sessions to discuss topics of interest. Staff can guide some
conversations while external subject matter experts might be brought in to guide other discussions.
Discussion topics are anticipated to include:
- affordable housing (policy, application, funding, etc)
- process of TIF financing consideration
- redevelopment goals and outcomes in general
- others TBD
Staff intends to make these discussions as helpful and effective as possible so that the goals of the
HRA can be achieved. Please advise staff of any specific topics or concerns that you have so that they
can be addressed at a future meeting.
Resources/Financial Impacts:
NA
Relationship to City Policies:
Supporting Documentation:
None
Page 72 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 8.2
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Other Department: Community Development
Item Title: 7250 France - Project Update
Action Requested:
No action required; for informational purposes only.
Information/Background:
Background
This site has seen several proposals for redevelopment over the years. As time passed, the
commercial buildings formerly on the site became blighted, obsolete and unsafe. The blight
accelerated during the pandemic years when the site became a target for vandals. At the City's urging,
the developer razed those buildings in 2022.
In April 2023, the HRA and City entered into a TIF Redevelopment Agreement with Orion
Investments to support complete redevelopment of the properties at 7200 & 7250 France Avenue
with two new buildings and extensive public space. With entitlements completed, the developer
pursued private financing for the new office building. The financing process took longer than originally
anticipated but recently achieved a milestone.
Update
The developer secured a construction loan from Bremer Bank in late December 2024. Construction
of the new office building - called The Craftsman Office Building - is expected to begin early in 2025.
In the months ahead, there will be a great deal of site work including the removal of the remaining
foundation walls and temporary retaining walls. A ground breaking ceremony will likely be scheduled
in early summer.
Resources/Financial Impacts:
NA
Relationship to City Policies:
Supporting Documentation:
None
Page 73 of 75
d
ITEM REPORT
Date: January 16, 2025 Item Activity: Information
Meeting: Housing & Redevelopment Authority
Agenda Number: 8.3
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Other Department: Community Development
Item Title: Pentagon Village - Project Update
Action Requested:
No action required; for informational purposes only.
Information/Background:
Background
In 2018, the City and HRA entered into a TIF Redevelopment Agreement with the Pentagon Village
development team of Hillcrest Properties and Solomon Real Estate to redevelop the blighted and
obsolete commercial facility formerly located at the intersection of 77th Street and Computer
Avenue. The Agreement established responsibilities and obligations of both parties, including the
phased, multi-year redevelopment of the 12-acre site to include 5 new projects in addition to the new
infrastructure. The original Agreement has been modified on three occasions as the project evolved
to meet the marketplace. To date, the developer has successfully delivered the required
infrastructure and 3 of the 5 buildings. Most recently the Eddi Apartments (Lot 3) and the regional
headquarters for First Bank & Trust. (Lot 4) have been completed. The City issued three TIF Pay-Go
Notes to reimburse the developer for eligible expenses. Repayment comes from the new property
taxes generated by the completed work.
The delivery of the anticipated dual-brand hotel on Lot 2 is behind schedule. The delay is due to two
key factors: 1) the COVID-19 pandemic which stunted the entire hospitality sector and related
changes to the travel industry and 2) an active lawsuit between the hotel developer and the general
contractor hired to construct the building.
The delivery of the anticipated multi-tenant office building on Lot 5 is also behind schedule due to
many challenges in the office sector.
These delays have resulted in limited payments on the TIF Notes. While the HRA/City still intend to
make payments, the amount available is less than originally anticipated. That is a risk borne by the
developer. The HRA/City is under no obligation to make payments larger than 90% of the new
property taxes generated by the developers project.
New Amendment Anticipated
Staff is negotiating an amendment to the Redevelopment Agreement to reflect these delays and to
encourage the developer to complete Lots 2 and 5 as promptly as reasonably possible. A proposed
Amendment will be presented to the HRA Board and City Council for consideration in the weeks
ahead.
Resources/Financial Impacts:
NA
Page 74 of 75
Relationship to City Policies:
Supporting Documentation:
None
Page 75 of 75