HomeMy WebLinkAbout2025-09-25 HRA Meeting Packet
Meeting location:
Edina City Hall
Council Chambers
4801 W. 50th St.
Edina, MN
Housing & Redevelopment Authority Meeting Agenda
Thursday, September 25, 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 2631 527 1706. 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. August 28, 2025, Regular Meeting Minutes
6.2. Adopt Resolution No. 2025-07 to Accept Minnesota Housing Finance Agency Local
Page 1 of 70
Housing Trust Fund Grant, Designate Signing Authority and Authorize Execution of
Grant Agreement.
7. Reports/Recommendations: (Favorable vote of majority of Commissioners
present to approve except where noted)
7.1. Resolution No. 2025-08; Amending the Spending Plan for the Southdale 2, Pentagon
Park and 70th and Cahill Tax Increment Financing Districts
8. Executive Director Comments
8.1. Using Tax Increment Financing to Achieve Community Goals
9. HRA Member Comments
10. Adjournment
Page 2 of 70
BOARD & COMMISSION
ITEM REPORT
Date: September 25, 2025 Item Activity: Approve
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.1
Prepared By: Liz Olson, Administrative Support
Specialist
Item Type: Minutes Department: Community Development
Item Title: August 28, 2025, Regular Meeting Minutes
Action Requested:
Approve minutes.
Information/Background:
Supporting Documentation:
1. 08-28-2025 Regular Meeting Minutes
Page 3 of 70
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 28, 2025
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 7:30 a.m. then explained the processes created for
public comment.
Chair Hovland held a moment of silence for the Annunciation Church shooting and everyone
impacted.
II. ROLLCALL
Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, Pierce, and Risser.
Absent: None.
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED – AS PRESENTED
Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the
meeting agenda as presented.
Ayes: 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 – ADOPTED
Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the
consent agenda as presented:
VI.A. DRAFT MINUTES OF REGULAR MEETING OF AUGUST 14, 2025
VI.B. ADOPT SUMMARY OF THE HRA WORK SESSIONS FOCUSED ON AFFORDABLE
HOUSING DIRECTION
VI.C. EDINA HOUSING FOUNDATION APPOINTMENTS
VI.D. AUTHORIZE CITY STAFF TO ENGAGE LEGAL COUNCIL TO PREPARE LOAN
DOCUMENTS PERTAINING TO 3400 PARKLAWN AVENUE AND 5010 SUMMIT
AVENUE FOR FUTURE HRA APPROVAL
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
VII. REPORTS AND RECOMMENDATIONS
VII.A. PROPOSED USES FOR 2025 ALLOCATION OF LOCAL AFFORDABLE HOUSING
AID (LAHA) – APPROVED
Affordable Housing Development Manager Hawkinson presented what LAHA is and the
requirements of LAHA. Ms. Hawkinson shared that the proposed use of the 2025 LAHA is for VEAP
– emergency rental assistance, Affordable Ownership Preservation Program, and the Mount Olivet
Rolling Acres rehab.
Page 4 of 70
Minutes/HRA/August 28, 2025
Page 2
Ms. Hawkinson presented information on what VEAP is, the City’s history of giving to VEAP, the
program criteria, loss of Federal funding to VEAP, and how VEAP is serving Edina residents.
The Board asked questions regarding assurance of supporting Edina residents with VEAP, the
demographics of Edina residents supported by VEAP, comparison to last year’s allocation of funds,
and the determination of proposed uses for allocation.
Ms. Hawkinson stated that the City provided VEAP with $100,000 last year, and the total allocation
from last year was $339,000, so they are keeping pace with what they gave last year.
Jennifer Harrison, VEAP, thanked Edina for all their support over the years. Ms. Harrison stated that
they have been able to disperse money into the community effectively, and they are looking forward
to being able to fulfill the needs of the community members and meet them where they are at.
Ms. Hawkinson presented the goals of the Affordable Preservation Ownership program, funding
history and leverage, program process, and program impact since 2021.
Ms. Hawkinson presented the Mount Olivet Rolling Acres, the overview of the homes, the financial
overview, and the LAHA request for each home.
The Board asked questions regarding what the LAHA funds can qualify for, other potential
opportunities to make a difference, and more details on the logic behind allocating funds to these
three proposed uses.
Katie Elleraas, Mount Olivet Rolling Acres, gave a brief background on the history and name of the
organization.
Ms. Hawkinson noted that this is the best value for the money that the City has.
Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the
recommendation and authorizing staff to engage legal counsel to prepare agreements.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
VII.B. EDINA “HEROES” DOWN PAYMENT ASSISTANCE PROGRAM – APPROVED
Affordable Housing Development Manager Hawkinson stated that this proposal aligns with the goals
outlined at previous HRA work sessions. Ms. Hawkinson presented program guidelines, eligibility,
funding requests, the Edina Housing Foundation, and the next steps.
The Board asked questions regarding success reporting process, how the number was determined,
and how to make the program more attainable.
Ms. Hawkinson stated that they can make success reporting a condition of the grant agreement.
Motion by Commissioner Agnew, seconded by Commissioner Pierce, approving
$1,000,000 from the Southdale TIF Pooled Fund for the “Heroes” Down Payment
Assistance program, and authorize staff to engage the City attorney to draft a grant
agreement with the Edina Housing Foundation and to modify loan documents to reflect
program parameters.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
Page 5 of 70
Minutes/HRA/August 28, 2025
Page 3
VII.C. RESOLUTION NO. 2025-06; ADOPTING THE PROPOSED BUDGET AND
ESTABLISHING THE PROPOSED TAX LEVY PAYABLE IN 2026 – ADOPTED
City Manager Neal said this item pertained to the proposed preliminary tax levy for the HRA and
stated that this is the final opportunity before September 16, 2025 to approve a levy. Mr. Neal stated
that they are proposing a 3% increase, which is consistent with the prior 6 budget cycles.
Member Jackson introduced and moved adoption of HRA Resolution No. 2025-06,
adopting the proposed budget and establishing the proposed Tax Levy payable in 2026.
Seconded by Member Agnew.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
VIII. EXECUTIVE DIRECTOR COMMENTS – Received
IX. HRA MEMBERS COMMENTS – Received
X. ADJOURNMENT
Motion made by Commissioner Jackson, seconded by Commissioner Agnew, to adjourn
the meeting at 9:00 a.m.
Ayes: Agnew, Jackson, Pierce, Risser, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Page 6 of 70
d
ITEM REPORT
Date: September 25, 2025 Item Activity: Approve
Meeting: Housing & Redevelopment Authority
Agenda Number: 6.2
Prepared By:
Item Type: Report & Recommendation Department: Community Development
Item Title: Adopt Resolution No. 2025-07 to Accept Minnesota Housing Finance Agency
Local Housing Trust Fund Grant, Designate Signing Authority and Authorize
Execution of Grant Agreement.
Action Requested:
Adopt Resolution No. 2025-07
Information/Background:
Minnesota Housing Finance Agency awarded the Edina Housing and Redevelopment Authority
$150,000 through their Local Housing Trust Fund grant program. These funds require an HRA
funding match for the Affordable Ownership Preservation Program in partnership with Homes Within
Reach and Twin Cities Habitat for Humanity. It is anticipated this will assist with the acquisition and
renovation of one home to place into the Community Land Trust and sell to an income-eligible
home-buyer. The home will remain affordable for 99-years.
The HRA match will come from sources already awarded to this program, including the 2025 LAHA
allocation and a funding award previously received from the Metropolitan Council. In addition, the
HRA previously awarded Affordable Housing Trust Funds to both Twin Cities Habitat for Humanity
and Homes Within Reach, although partially expended, count towards the match.
Resources/Financial Impacts:
• Budget –The Minnesota Housing grants adds $150,000 to support programs funded by the Housing
and Redevelopment Authority. This amount was not previously budgeted. The grant agreement
restricts how the funds may be used.
• Implementation – Staff will implement with HRA authorization.
• Operation – This funding source will need to be tracked with reports due to the state. Funding to
third parties will be secured by funding agreements.
Relationship to City Policies:
This Minnesota Housing grant supports goals outlined in the Comprehensive Plan.
Budget Pillar:
Reliable Service
Livable City
Better Together
Page 7 of 70
Values Impact:
Sustainability
The Affordable Ownership Preservation Program focus on
rehabilitation rather than new construction, which extends the useful
life of the homes and saves them from the land-fill. As funding is
available, energy upgrades will be incorporated into the scope of work.
Engagement The programs foster inclusivity by creating more opportunities for
moderate income households to experience homeownership in Edina.
Health
The focus of the funding addresses housing stability by creating
affordable ownership opportunities. Housing is a social determinate of
health. Stable, affordable housing reduces stress and allows for
additional financial resources to be directed towards food, medicine
and other health enhancing items.
Stewardship
The Minnesota Housing grant brings in another source of funding to
help future generations of home-buyers. Our partners in this endeavor,
Homes Within Reach and Twin Cities Habitat, are reaching the end of
the funds the HRA previously awarded to them.
Equity
Supporting affordable homeownership serves historically
underrepresented groups in Edina. The funding helps reduce barriers
to buying a house in Edina.
Supporting Documentation:
1. Resolution 2025-07
2. 2025 LHTF Contract Agreement Template
Page 8 of 70
RESOLUTION NO. 2025-07
ACCEPT MINNESOTA HOUSING FINANCE AGENCY LOCAL HOUSING
TRUST FUND GRANT, DESIGNATE SIGNING AUTHORITY AND AUTHORIZE
EXECUTION OF GRANT AGREEMENT
WHEREAS, the City of Edina Housing and Redevelopment Authority has applied for and
received a grant under the Minnesota Housing Finance Agency’s Local Housing Trust Fund Grants
Program in the amount of $150,000 to support the preservation of single-family homes for affordable
home ownership; and
WHEREAS, said grant must be accepted via a resolution of the Housing and Redevelopment
Authority adopted by a two thirds majority of its members.
NOW, THEREFORE, BE IT RESOLVED THAT the Edina Housing and Redevelopment
Authority hereby accepts the Minnesota Housing Finance Agency’s Local Housing Trust Fund grant in
the amount of $150,000 and authorizes and directs the Chair and Executive Director to sign the grant
agreement on its behalf.
Adopted this 25th day of September 2025.
Attest:_________________________ ______________________________
Carolyn Jackson, Vice Chair James Pierce, Secretary
STATE OF MINNESOTA )
COUNTY OF HENNEPIN) SS
CITY OF EDINA )
CERTIFICATE OF EXECUTIVE DIRECTOR
I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment
Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina Housing
and Redevelopment Authority at its Regular Meeting of September 25, 2025, and as recorded in the Minutes of
said Regular Meeting.
WITNESS my hand and seal of said City this _______ day of ___________________, 2025.
___________________________
Executive Director
Page 9 of 70
Local Housing Trust Fund Grant Contract Agreement 1
MINNESOTA HOUSING FINANCE AGENCY
GRANT CONTRACT AGREEMENT
LOCAL HOUSING TRUST FUND GRANTS PROGRAM
This Grant Contract Agreement is between the Minnesota Housing Finance Agency ("MHFA") and [FULL
NAME OF THE GRANTEE INCLUDING ITS ADDRESS] ("GRANTEE").
Recitals
1. Under Minnesota 2023 Session Law, Chapter 37, Article 1, Section 2, Subd. 21, MHFA is empowered to
enter into this Grant Contract Agreement.
2. MHFA is in need of local governments to create or fund local housing trust funds as defined under
Minnesota Statute 462C.16 for the purposes of:
• Making grants, loans, and loan guarantees for the development, rehabilitation, or financing of
housing;
• Matching other funds from federal, state, or private resources for housing projects;
• Providing down payment assistance, rental assistance, and homebuyer counseling services; and
• Administrative expenses, up to 10% of the Local Housing Trust Fund grant amount.
3. The Grantee represents that it is duly qualified and agrees to perform all services described in this Grant
Contract Agreement to the satisfaction of MHFA. Pursuant to Minn. Stat. 16B.98, Subd.1, the Grantee
agrees to minimize administrative costs as a condition of this Grant Contract Agreement.
Grant Contract Agreement
1. Term of Grant Contract Agreement
1.1 Effective date:
September XX, 2025, or the date all required signatures are obtained, whichever is later. Per Minn.
Stat. 16B.98, Subd. 5, the Grantee must not begin work until this Grant Contract Agreement is fully
executed and MHFA's Authorized Representative has notified the Grantee that work may
commence. Per Minn. Stat. 16B.98 Subd. 7, no payments will be made to the Grantee until this
Grant Contract Agreement is fully executed.
1.2 Grant period:
The Grant Contract Agreement period for the Program begins with the Effective Date of this Grant
Contract Agreement and continues through September XX, 2028, (the “Grant Period”). All funds
provided through this Grant Contract Agreement must be fully expended in compliance with this
Grant Contract Agreement by the end of the Grant Period.
1.3 Expiration date:
December XX, 2028, or until all obligations have been satisfactorily fulfilled, whichever occurs first.
1.4 Survival of Terms.
The following clauses survive the expiration or cancellation of this Grant Contract Agreement: 8.
Liability; 9. State Audits; 10. Government Data Practices and Intellectual Property; 12. Publicity and
Endorsement; 13. Governing Law, Jurisdiction, and Venue; and 15 Data Disclosure.
2. Grantee’s Duties
The Grantee, who is not a state employee, will:
Page 10 of 70
Local Housing Trust Fund Grant Contract Agreement 2
Comply with required grants management policies and procedures set forth through Minn. Stat. 16B.97,
Subd. 4 (a) (1), and review the State of Minnesota Office of Grants Management policy 08-01 (Conflict
of Interest for State Grant-Making). The Grantee is required to have a documented Conflict of Interest
policy and must utilize this policy when performing the Grantee duties under the Grant Contract
Agreement. If the Grantee has knowledge or becomes aware of any actual, potential, perceived, or
organizational conflicts of interest with respect to the Grant Contract Agreement, the Grantee shall
immediately disclose the conflict of interest directly to MHFA.
2.1 Work Plan
The Grantee shall perform the duties specified in Exhibit A (the “Work Plan”), which is attached
and incorporated into this Grant Contract Agreement.
2.2 Program Guide
The Grantee will comply with the Local Housing Trust Fund Grants Program Guide (the “Program
Guide”), located on MHFA’s website, which is incorporated into this Grant Contract Agreement,
and may be amended as needed. MHFA will provide notice of any such amendments to the
Grantee’s Authorized Representative (defined herein) by email. Unless otherwise indicated in the
Program Guide, any such amendments are binding to the Grantee as of the date indicated in the
notice, which shall not be earlier than the date that MHFA sends the notice.
2.3 Authorized Expenditures
The Grantee acknowledges that grant funds disbursed by MHFA are provided for the purposes of
incentivizing local funding for affordable housing for the authorized expenditures listed in Minn.
Stat. 462C.16, Subd. 3. All grant funds must be used by the Grantee to fund the activities described
in the Work Plan in accordance with the terms of this Grant Contract Agreement.
2.4 Matching New Public Revenue
Before the execution of this Grant Contract Agreement, the Grantee must provide to MHFA,
documentation of their matching New Public Revenue in the amount of $XXX,XXX.00, including
the source of revenue.
2.5 Reporting
The Grantee must submit annual reports to MHFA beginning no later than one calendar year after
the effective date of this Grant Contract Agreement and continuing until all grant funds have been
expended or the expiration date of the Grant Contract Agreement, whichever occurs first. Required
annual report information may include: program or project progress reporting, grant and matching
New Public Revenue expenditures, communities benefitting from grant funds, and any other
information MHFA requests regarding the use of grant funds.
Reporting forms, instructions, and submission dates will be available on the Local Government
Housing Programs webpage.
3. Time
The Grantee must comply with all the time requirements described in this Grant Contract Agreement. In the
performance of this Grant Contract Agreement, time is of the essence.
4. Consideration and Payment
4.1 Consideration.
MHFA will pay for all services performed by the Grantee under this Grant Contract Agreement as
follows:
Page 11 of 70
Local Housing Trust Fund Grant Contract Agreement 3
(a) Compensation
The Grantee will be paid up to a maximum of $XXX,XXX.00, according to the breakdown of
program or project activities for “Grant Funds Budgeted” in Exhibit B (the “Budget”), which is
attached and incorporated into this Grant Contract Agreement.
(b) Matching Funds
The total grant amount is based on the amount of secured matching New Public Revenue funds
committed to the Grantee’s Local Housing Trust Fund, as detailed in the breakdown of costs
contained in Exhibit B. For the purposes of the Local Housing Trust Fund Grants Program,
“New Public Revenue” is defined as local income that is committed to the Local Housing Trust
Fund on or after June 29, 2021, from any source other than the state or federal government.
(c) Travel Expenses
Reimbursement for travel and subsistence expenses actually and necessarily incurred by the
Grantee as a result of this Grant Contract Agreement will not exceed $0.00; provided that the
Grantee will be reimbursed for travel and subsistence expenses in the same manner and in no
greater amount than provided in the current "Commissioner’s Plan” promulgated by the
Commissioner of Minnesota Management and Budget (MMB). The Grantee will not be
reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received
MHFA’s prior written approval for out of state travel. Minnesota will be considered the home
state for determining whether travel is out of state.
(d) Total Obligation.
The total obligation of MHFA for all compensation and reimbursements to the Grantee under
this Grant Contract Agreement will not exceed $XXX,XXX.00 (the “Grant Proceeds”).
4.2 Payment
(a) Invoices
MHFA will promptly pay the Grantee after the Grantee presents an itemized invoice for the
services actually performed and MHFA's Authorized Representative accepts the invoiced
services. Invoices must be submitted timely and according to the following schedule:
Grant funds will be disbursed in a total of up to two payments.
The first disbursement of at least 50% of the total grant award, will be disbursed to the Grantee
after submitting documentation to MHFA demonstrating that the Grantee has expended at least
50% of the total matching New Public Revenue funds on authorized expenditures.
A second disbursement of the remaining grant amount will be disbursed to the Grantee after
documentation is submitted to MHFA demonstrating that the Grantee has expended the matching
New Public Revenue funds on authorized expenditures in the amount of the remaining balance of
grant.
(b) Unexpended Funds
The Grantee must promptly return to MHFA any unexpended funds that have not been accounted
for annually in a financial report to MHFA due at grant closeout.
4.3 Contracting and Bidding Requirements
(a) Any services and/or materials that are expected to cost $100,000 or more must undergo a formal
notice and bidding process.
Page 12 of 70
Local Housing Trust Fund Grant Contract Agreement 4
(b) Services and/or materials that are expected to cost between $25,000 and $99,999 must be
competitively awarded based on a minimum of three (3) verbal quotes or bids.
(c) Services and/or materials that are expected to cost between $10,000 and $24,999 must be
competitively awarded based on a minimum of two (2) verbal quotes or bids or awarded to a
targeted vendor.
(d) The Grantee must take all necessary affirmative steps to assure that targeted vendors from
businesses with active certifications through these entities are used when possible:
• State Department of Administration's Certified Targeted Group, Economically
Disadvantaged and Veteran-Owned Vendor List
• Metropolitan Council Underutilized Business Program: MCUB: Metropolitan Council
Underutilized Business Program
• Small Business Certification Program through Hennepin County, Ramsey County, and City
of St. Paul: Central Certification Directory
(e) The Grantee must maintain written standards of conduct covering conflicts of interest and
governing the actions of its employees engaged in the selection, award, and administration of
contracts.
(f) The Grantee must maintain support documentation of the purchasing or bidding process used to
contract services in their financial records, including support documentation justifying a
single/sole source bid, if applicable.
(g) Notwithstanding (a) - (d) above, MHFA may waive bidding process requirements when:
• Vendors included in response to competitive grant request for proposal process were
approved and incorporated as an approved work plan for the grant.
• It is determined there is only one legitimate or practical source for such materials or services
and that the Grantee has established a fair and reasonable price.
(h) For projects that include construction work of $25,000 or more, prevailing wage rules apply per
Minn. Stat. 177.41 through 177.44. These rules require that the wages of laborers and workers
should be comparable to wages paid for similar work in the community as a whole.
(i) The Grantee must not contract with vendors who are suspended or debarred in MN:
https://mn.gov/admin/osp/government/suspended-debarred.
5. Conditions of Payment
All services provided by the Grantee under this Grant Contract Agreement must be performed to MHFA’s
satisfaction, as determined at the sole discretion of the MHFA’s Authorized Representative and in
accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee
will not receive payment for work found by MHFA to be unsatisfactory or performed in violation of federal,
state, or local law.
6. Authorized Representative
MHFA's Authorized Representative is Jennifer Bergman, Director of Local Government Housing Programs,
400 Wabasha Street N. Suite 400, St. Paul, MN 55102, 651-297-5232, jennifer.bergman@state.mn.us, or
her successor, and has the responsibility to monitor the Grantee’s performance and the authority to accept
the services provided under this Grant Contract Agreement. If the services are satisfactory, the MHFA's
Authorized Representative will certify acceptance on each invoice submitted for payment. The Authorized
Page 13 of 70
Local Housing Trust Fund Grant Contract Agreement 5
Representative may delegate certain responsibilities to the Program Manager, Colleen Meier, 651-296-9811,
colleen.meier@state.mn.us, or her successor.
All Local Government Housing Programs staff may be reached by email at
localhousingtrustfund.mhfa@state.mn.us.
The Grantee’s Authorized Representative is [NAME, TITLE, ADDRESS, TELEPHONE NUMBER,
EMAIL]. If the Grantee’s Authorized Representative changes at any time during this Grant Contract
Agreement, the Grantee must immediately notify MHFA.
7. Assignment Amendments, Waiver, and Grant Contract Agreement Complete
7.1 Assignment
The Grantee shall neither assign nor transfer any rights or obligations under this Grant Contract
Agreement without the prior written consent of MHFA, approved by the same parties who executed
and approved this Grant Contract Agreement, or their successors in office.
7.2 Amendments
Any amendments to this Grant Contract Agreement must be in writing and will not be effective until
it has been executed and approved by the same parties who executed and approved the original Grant
Contract Agreement, or their successors in office.
7.3 Waiver
If MHFA fails to enforce any provision of this Grant Contract Agreement, that failure does not
waive the provision or MHFA’s right to enforce it.
7.4 Grant Contract Agreement Complete
This Grant Contract Agreement contains all negotiations and agreements between MHFA and the
Grantee. No other understanding regarding this Grant Contract Agreement, whether written or oral,
may be used to bind either party.
8. Liability
The Grantee must indemnify, save, and hold MHFA, its agents, and employees harmless from any claims or
causes of action, including attorney’s fees incurred by MHFA, arising from the performance of this Grant
Contract Agreement by the Grantee or the Grantee’s agents or employees. This clause will not be construed
to bar any legal remedies the Grantee may have for the MHFA's failure to fulfill its obligations under this
Grant Contract Agreement.
9. State Audits
Under Minn. Stat. § 16B.98, Subd.8, the Grantee’s books, records, documents, and accounting procedures
and practices of the Grantee or other party relevant to this Grant Contract Agreement or transaction are
subject to examination by the Commissioner of Administration, MHFA and/or the State Auditor or
Legislative Auditor, as appropriate, for a minimum of six years from the end of this Grant Contract
Agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and
program retention requirements, whichever is later.
10. Government Data Practices and Intellectual Property Rights
10.1 Government Data Practices
The Grantee and MHFA must comply with the Minnesota Government Data Practices Act, Minn.
Stat. Ch. 13, as it applies to all data provided by MHFA under this Grant Contract Agreement, and as
it applies to all data created, collected, received, stored, used, maintained, or disseminated by the
Grantee under this Grant Contract Agreement. The civil remedies of Minn. Stat. 13.08 apply to the
Commented [CM1]: The Authorized Representative will
be the contact to request and sign off on disbursements. Can
be a different person than the contract signer.
Page 14 of 70
Local Housing Trust Fund Grant Contract Agreement 6
release of the data referred to in this clause by either the Grantee or MHFA. If the Grantee receives a
request to release the data referred to in this Clause, the Grantee must immediately notify MHFA.
MHFA will give the Grantee instructions concerning the release of the data to the requesting party
before the data is released. The Grantee’s response to the request shall comply with applicable law.
10.2 Intellectual Property Rights
(a) MHFA owns all rights, title, and interest in all of the intellectual property rights, including
copyrights, patents, trade secrets, trademarks, and service marks in the works and documents
created and paid for under this Grant Contract Agreement. The “works” means all inventions,
improvements, discoveries (whether or not patentable), databases, computer programs, reports,
notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and
disks conceived, reduced to practice, created or originated by the Grantee, its employees, agents,
and subcontractors, either individually or jointly with others in the performance of this Grant
Contract Agreement. “Works” includes documents. The “documents” are the originals of any
databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings,
specifications, materials, tapes, disks, or other materials, whether in tangible or electronic forms,
prepared by the Grantee, its employees, agents, or subcontractors, in the performance of this
Grant Contract Agreement. The documents will be the exclusive property of MHFA and all such
documents must be immediately returned to MHFA by the Grantee upon completion or
cancellation of this Grant Contract Agreement. To the extent possible, those works eligible for
copyright protection under the United States Copyright Act will be deemed to be “works made
for hire.” The Grantee assigns all right, title, and interest it may have in the works and the
documents to MHFA. The Grantee must, at the request of MHFA, execute all papers and
perform all other acts necessary to transfer or record MHFA’s ownership interest in the works
and documents.
(b) Obligations
(1) Notification. Whenever any invention, improvement, or discovery (whether or not
patentable) is made or conceived for the first time or actually or constructively reduced to
practice by the Grantee, including its employees and subcontractors, in the performance of
this Grant Contract Agreement, the Grantee will immediately give MHFA’s Authorized
Representative written notice thereof, and must promptly furnish MHFA’s Authorized
Representative with complete information and/or disclosure thereon.
(2) Representation. The Grantee must perform all acts and take all steps necessary to ensure that
all intellectual property rights in the works and documents are the sole property of MHFA,
and that neither the Grantee nor its employees, agents, or subcontractors retain any interest in
and to the works and documents. The Grantee represents and warrants that the works and
documents do not and will not infringe upon any intellectual property rights of other persons
or entities. The Grantee will indemnify; defend, to the extent permitted by the Attorney
General; and hold harmless MHFA, at Grantee’s expense, from any action or claim brought
against MHFA to the extent that it is based on a claim that all or part of the works or
documents infringe upon the intellectual property rights of others. The Grantee will be
responsible for payment of any and all such claims, demands, obligations, liabilities, costs,
and damages, including but not limited to, attorney fees. If such a claim or action arises, or in
the Grantee’s or MHFA’s opinion is likely to arise, the Grantee must, at the MHFA’s
discretion, either procure for MHFA the right or license to use the intellectual property rights
at issue or replace or modify the allegedly infringing works or documents as necessary and
appropriate to obviate the infringement claim. This remedy of MHFA will be in addition to
and not exclusive of other remedies provided by law.
Page 15 of 70
Local Housing Trust Fund Grant Contract Agreement 7
11. Workers Compensation
The Grantee certifies that it is in compliance with Minn. Stat. 176.181, Subd. 2, pertaining to workers’
compensation insurance coverage. The Grantee’s employees and agents will not be considered MHFA
employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these
employees and any claims made by any third party as a consequence of any act or omission on the part of
these employees are in no way MHFA’s obligation or responsibility.
12. Publicity and Endorsement
12.1 Publicity
Any publicity regarding the subject matter of this Grant Contract Agreement must identify MHFA as
the sponsoring agency and must not be released without prior written approval from MHFA’s
Authorized Representative. For purposes of this provision, publicity includes notices, informational
pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the
Grantee individually or jointly with others, or any subcontractors, with respect to the program,
publications, or services provided resulting from this Grant Contract Agreement. All projects
primarily funded by state grant appropriations must publicly credit MHFA, including on the
Grantee’s website when practicable.
12.2 Endorsement
The Grantee must not claim that MHFA endorses its products or services.
13. Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice-of-law provisions, governs this Grant Contract Agreement.
Venue for all legal proceedings out of this Grant Contract Agreement, or its breach, must be in the
appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota.
14. Termination
14.1 Termination by MHFA
(a) Without Cause
MHFA may terminate this Grant Contract Agreement without cause, upon 30 days’ written
notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a
pro rata basis, for services satisfactorily performed.
(b) With Cause
MHFA may immediately terminate this Grant Contract Agreement if MHFA finds that there has
been a failure to comply with the provisions of this Grant Contract Agreement, that reasonable
progress has not been made or that the purposes for which the funds were granted have not been
or will not be fulfilled. MHFA may take action to protect the interests of MHFA, including the
refusal to disburse additional funds and requiring the return of all or part of the funds already
disbursed.
14.2 Termination by The Commissioner of Administration
The Commissioner of Administration may immediately and unilaterally cancel this Grant Contract
Agreement if further performance under the Agreement would not serve agency purposes or is not in
the best interest of State.
14.3 Termination for Insufficient Funding
MHFA may immediately terminate this Grant Contract Agreement if:
(a) It does not obtain funding from the Minnesota Legislature;
Page 16 of 70
Local Housing Trust Fund Grant Contract Agreement 8
(b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services
covered here. Termination must be by written notice to the Grantee. MHFA is not obligated to
pay for any services that are provided after notice and effective date of termination. However,
the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily
performed to the extent that funds are available. MHFA will not be assessed any penalty if this
Grant Contract Agreement is terminated because of the decision of the Minnesota Legislature, or
other funding source, not to appropriate funds. MHFA must provide the Grantee notice of the
lack of funding within a reasonable time of MHFA’s receiving that notice.
15. Data Disclosure
Under Minn. Stat. 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its
social security number, federal employer tax identification number, and/or Minnesota tax identification
number, already provided to MHFA, to federal and state tax agencies and state personnel involved in the
payment of state obligations. These identification numbers may be used in the enforcement of federal and
state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent
state tax liabilities, if any.
16. Fraud Disclosure
Fraud is any intentionally deceptive action made for personal gain or to damage another. Any person or
entity (including its employees and affiliates) that enters into an agreement with MHFA and witnesses,
discovers evidence of, receives a report from another source, or has other reasonable basis to suspect that
fraud or embezzlement has occurred must immediately make a report to:
• MHFA’s Chief Risk Officer at 651.296.7608 or 800.657.3769 or by email at
MHFA.ReportWrongdoing@state.mn.us;
• Any member of MHFA’s Servant Leadership Team as denoted on MHFA’s current organizational
chart (Go to mnhousing.gov, scroll to the bottom of the screen and select About Us, select Servant
Leadership Team); or
• Report Wrongdoing or Concerns (mnhousing.gov) (Go to mnhousing.gov, scroll to the bottom of the
screen and select Report Wrongdoing).
17. Suspension
By entering into any agreement with MHFA, a contracting party represents that the contracting party
(including its employees or affiliates that will have direct control over the subject of the agreement) has not
been suspended from doing business with MHFA. Please refer to MHFA’s website for a list of suspended
individuals and organizations.
18. Conflicts
In the event of a conflict between the terms of this Grant Contract Agreement, its exhibits, and the Program
Guide, or between exhibits, the order of precedence is first the Grant Contract Agreement, and then in the
following order:
• Program Guide
• Exhibit A – Work Plan
• Exhibit B – Budget
Page 17 of 70
Local Housing Trust Fund Grant Contract Agreement 9
1. GRANTEE
The Grantee certifies that the appropriate person(s) have executed the Grant
Contract Agreement on behalf of the Grantee as required by applicable
articles, bylaws, resolutions, or ordinances.
By:
Title:
Date:
By:
Title:
Date:
2. MINNESOTA HOUSING FINANCE AGENCY
By:
(with delegated authority)
Title:
Date:
Distribution:
Agency
Grantee
MHFA’s Authorized Representative
Commented [CM2]: The person(s) who has authority
from your organization to execute contracts.
Page 18 of 70
d
ITEM REPORT
Date: September 25, 2025 Item Activity: Approve
Meeting: Housing & Redevelopment Authority
Agenda Number: 7.1
Prepared By: Bill Neuendorf, Economic Dev Mgr
Item Type: Report & Recommendation Department: Community Development
Item Title: Resolution No. 2025-08; Amending the Spending Plan for the Southdale 2,
Pentagon Park and 70th and Cahill Tax Increment Financing Districts
Action Requested:
Approve Resolution 2025-08 amending a Spending Plan for the Southdale 2, Pentagon Park, and
Wooddale / Valley View Tax Increment Financing Districts.
Information/Background:
This Resolution proposes to amend the 2021 Spending Plan that governs the expenditure of
unobligated monies that are retained in three Tax Increment Financing (TIF) Districts. Like the
original program, these changes are responsive to changes in State Law that govern the use of TIF
monies.
The amended Spending Plan extends the deadline to use these monies by one year (concluding
December 31, 2026) and increases the total monies available by including the interest earnings
accumulated since 2021.
This Resolution is the first step in the consideration process. After HRA consent, the City Council
will be asked to approve the amended Spending Plan after input is collected through a future Public
Hearing.
Staff recommends approval of this Resolution.
Resources/Financial Impacts:
No direct impact since these monies have already been collected and retained in restricted TIF Funds
that cannot be used for general fund expenses.
Relationship to City Policies:
Comprehensive Plan
Supporting Documentation:
1. Spending Plan - Amended - unobligated TIF - Staff presentation 9-25-2025
2. HRA Resolution 2025-08 Spending Plan Amendment - unobligated TIF
3. Edina Amended and Restated Spending Plan - DRAFT 9.15.25
4. Edina Spending Plan - Unobligated TIF monies (approved Nov 2021)
Page 19 of 70
Resolution 2025-08
Amending Spending Plan for Southdale 2,
Pentagon Park, Wooddale/ValleyView TIF
Districts
Staff Presentation to:
Edina HRA Board
September 25, 2025
Housing & Redevelopment Authority
Page 20 of 70
Background
Housing & Redevelopment Authority
•2021 Minnesota Legislation allowed cities to use unallocated TIF monies that had not previously been obligated
•Intended to accelerate the economic recovery after the COVID-19 pandemic
•Intended to create new jobs
•Intended to promote new private investment
•Edina created the SPARC program and has pledged all available monies with a few projects pending
•New 2025 law allows cities to extend investment deadline and to use interest earnings
2
Page 21 of 70
Background
Housing & Redevelopment Authority
3
Edina had 3 TIF accounts with
unallocated monies that were eligible for
the 2021 MN Statute:
•Pentagon Park $700,000
•Southdale 2 $8,465,062
•70th & Cahill / WVV $342,892
Original Total Pledged $9,507,954
•Plus interest approx. $775,849
AMENDED TOTAL approx. $10,283,803
Page 22 of 70
How Funds can be used
Housing & Redevelopment Authority
4
TIF monies can fill gap in private
development projects including:
-New construction or substantial
rehabilitation of existing
-Private improvements or related public
improvements
-Loan, grant or equity investment
NOT for public buildings or parks
NOT for general public improvements gap
TIF
Page 23 of 70
What is the criteria to use Funds
Housing & Redevelopment Authority
5
•Each project MUST deliver new
construction or substantial rehabilitation of
brick and mortar structures
•Each project MUST create jobs, including
(at a minimum) construction jobs
•Each project MUST be determined to be
unable to proceed without public funding
•Each project SHOULD deliver benefits
that help achieve goals of the City and
HRA gap
TIF
Page 24 of 70
How has Edina used Funds already?
Housing & Redevelopment Authority
6
•Edina Theatre – restoration and revitalization
(complete)
•New restaurant at 3916 W. 50 th St (under
construction)
•New office / business hub for Edina Innovation Lab
(completed, but program terminated)
•Site improvements at The Finch Apartments on 77 th
St. (completed)
•Gap financing for The Setting Apartments on France
Ave (under construction)
•Pledge to Enclave / Lifestyle Communities at 7235
France Ave (pending)
•Streamlined Grant Program
•New café at 4408 France Ave. (completed)
•Other projects anticipated
gap
TIF
Page 25 of 70
When can Funds be used?
Housing & Redevelopment Authority
7
•Under current language, eligible work
must be completed by 12/31/2025
•Under proposed language, this deadline
extended until 12/31/2026 and approx.
$775k in interest earnings can be added
to the program
•City Council to hold Public Hearing Oct
22nd with final consideration on Nov 4th
•Any unused funds must be returned to the
original TIF account OR be redistributed
to the County, City and Schools in 2027 gap
TIF
Page 26 of 70
Alternate Outcome if Amended Spending Plan rejected
Housing & Redevelopment Authority
8
If 2025 deadline remains in effect:
•Not all monies previously pledged
will be invested
•Pending projects may not move
forward
•Leftover funds (approx. $900,000)
will be returned to Hennepin
County for distribution
•City will receive approx. 1/3
•County will receive approx. 1/3
•State will receive approx. 1/3
Page 27 of 70
Recommended Process (no change from current)
Housing & Redevelopment Authority
9
•Two step process
1st – HRA and City Council to adopt
Spending Plan
2nd - staff and HRA to consider
qualified projects on case-by-case
basis
•Seek to maximize private
investment and create strong
economic conditions throughout
the commercial areas
•Comply with applicable State
rules and regulations, including
reporting
Page 28 of 70
Types of Projects to Consider
Housing & Redevelopment Authority
10
Under the general terms of the original and
amended Spending Plan, many different types of
projects could be considered in the future.
Examples include:
•Renovation of vacant commercial buildings and
tenant spaces
•Construction of new commercial or multi-family
buildings
•Improvements to public roadways, parking
facilities and related infrastructure that hinder
private investment
The Streamlined Grant Program could be
continued and additional projects could also be
funded.
Page 29 of 70
Summary & Recommendation
Housing & Redevelopment Authority
11
Ø 2021 Minnesota Statutes enabled unallocated TIF monies to be reinvested to pursue
private development and create jobs
Ø 2025 Minnesota Statutes allows an additional year to invest these monies and allows
interest earnings on the monies to also be used
Ø Edina previously pledged $9.4 million to this program with most of the work completed
or under construction
Ø Edina could pledge an additional $775k (interest income) to this program
Ø Additional time is needed to complete the pending projects and identify additional
projects
Ø Staff recommends that the amended Spending Plan be adopted
Page 30 of 70
HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA MINNESOTA
RESOLUTION NO. 2025-08
AMENDING A SPENDING PLAN FOR THE SOUTHDALE 2, PENTAGON PARK, AND
WOODDALE/VALLEY VIEW TAX INCREMENT FINANCING DISTRICTS
WHEREAS, the Board of Commissioners (the “Board”) of the Edina Housing and Redevelopment Authority (the
“HRA”) and the City Council (the “Council”) of the City of Edina, Minnesota (the “City”) established the Southdale 2,
Pentagon Park, and 70th and Cahill Tax Increment Financing Districts (the “TIF Districts”), pursuant to, and in accordance
with Minnesota Statutes, Section 469.174 to 469.1794, inclusive, as amended (the “Act”); and
WHEREAS, the HRA adopted a written spending plan for the TIF Districts (the “Spending Plan”), pursuant to, and
in accordance with, Minnesota Statutes, Sections 469.176, Subd. 4n inclusive, as amended (“Subd. 4n”) to transfer existing
and unobligated tax increment revenues from the TIF Districts for use in stimulating construction or substantial
rehabilitation of private development in a way that will also create or retain jobs in the City so long as the construction
commenced by December 31, 2025; and
WHEREAS, the State Legislature amended Subd. 4n in 2025 to allow a municipality to extend the deadline for the
commencement of construction by one year to December 31, 2026 and also utilize interest earnings on transferred
increment for Spending Plan activities if specifically authorized within an amended spending plan approved by December
31, 2025; and
WHEREAS, the HRA has investigated the facts relating to the Spending Plan and has caused the Amended and
Restated Spending Plan to be prepared; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the adoption of the
Amended and Restated Spending Plan, including, but not limited to, requesting that the Council cause notice of a public
hearing to be published and hold a public hearing on amending the adopted Spending Plan.
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
1. The HRA hereby reaffirms the original findings for the TIF Districts and Spending Plan in finding that the adoption
of the proposed Amended and Restated Spending Plan conforms in all respects to the requirements of the Act and
will result in creation or retention of jobs in the State of Minnesota (the “State”) and help preserve and enhance
the tax base of the State and thereby serves a public purpose.
2. The HRA further finds that the Amended and Restated Spending Plan will afford maximum opportunity, consistent
with the sound needs for the City as a whole, for the development or redevelopment of the Project Area by private
enterprise in that the intent is to provide only that public assistance necessary to make the private developments
financially feasible.
Page 31 of 70
3. Conditioned upon the approval thereof by the Council following its public hearing thereon, the Amended and
Restated Spending Plan, as presented to the HRA on this date, is hereby approved, established and adopted and
shall be placed on file in the office of the Executive Director of the HRA.
4. Upon approval of the Amended and Restated Spending Plan by the Council, HRA staff, advisors and legal counsel
are authorized and directed to proceed with the implementation of the Amended and Restated Spending Plan and
for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans,
resolutions, documents and contracts necessary for this purpose. Approval of the Amended and Restated Spending
Plan does not constitute approval of any project or a development agreement with any developer.
5. Upon approval of the Amended and Restated Spending Plan by the Council, the Executive Director of the HRA is
authorized and directed to forward a copy of the Amended and Restated Spending Plan to the Office of the State
Auditor pursuant to Minnesota Statutes 469.176, Subd. 4n.
Approved by the Board on September 25, 2025.
ATTEST: _______________________________
James B. Hovland, Chair
_______________________________
James Pierce, Secretary
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 is a true and correct copy of the Resolution duly adopted by the Edina Housing and
Redevelopment Authority at its Regular Meeting of September 25, 2025, and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this ______________ day of September, 2025.
Executive Director
Page 32 of 70
Original HRA Adoption Date: October 28, 2021
City Council Approval Date: November 16, 2021
Proposed Amendment Public Hearing: October 22, 2025
Edina Housing and Redevelopment Authority
City of Edina,
Hennepin County, Minnesota
AMENDED AND RESTATED SPENDING PLAN
Southdale 2 TIF District
Pentagon Park TIF District
70th and Cahill TIF District
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Prepared by:
Ehlers
3060 Centre Pointe Drive
Roseville, Minnesota 55113
Page 33 of 70
2
AMENDED AND RESTATED SPENDING PLAN FOR UNOBLIGATED
SOUTHDALE 2, PENTAGON PARK, AND 70TH AND CAHILL TAX
INCREMENT FINANCING DISTRICT FUNDS
I. BACKGROUND
The Edina Housing and Development Authority (the “HRA”) and the City of Edina (the “City”)
previously established the Southdale 2, Pentagon Park and 70th and Cahill Tax Increment
Financing Districts (the “TIF Districts”) to further the objectives of the HRA. The 70th and Cahill
District was established in 1990 and is currently decertified. The Southdale 2 District was
established in 2012 and is also decertified. The Pentagon Park District was established in 2014
and remains active. Each of the TIF Districts are administered by the HRA and contain unobligated
monies.
In accordance with Minnesota Statutes, Section 469.176 Subd. 4n (the “Act”) regarding the
authority to use unobligated TIF monies, the HRA and City adopted a spending plan for the
transfer of unobligated monies from each of the TIF Districts in 2021 (the “Original Spending
Plan”). The Minnesota Legislature amended the Act in 2025 to allow municipalities to extend the
allowable spending period for transferred funds and clarify the use of any revenues derived from
the investment or of transferred funds. The HRA and City propose to adopt this amended and
restated spending plan (the “Spending Plan”) to enable the provisions of the 2025 legislative
amendment.
II. PURPOSEi
The purpose of the Spending Plan is to assist in the private development or redevelopment of
sites, lands or areas within the City using unobligated tax increments from the TIF Districts. The
development or redevelopment is to be in conformity with the City’s Comprehensive Plan and
other adopted plans and the unobligated tax increments are to be utilized for one of the following
purposes (together, the “Spending Plan Assistance”):
(a) to provide improvements, loans, interest rate subsidies, or assistance in any form to
private development consisting of the construction or substantial rehabilitation of buildings and
ancillary facilities if the following conditions exist:
(i) Such assistance will create or retain jobs in the State of Minnesota, including
construction jobs;
(ii) Construction commences before December 31, 2026; and
(iii) The construction would not have commenced before that date without the
assistance.
Page 34 of 70
3
(b) to make an equity of similar investment in a corporation, partnership or limited liability
company the HRA determines is necessary to make construction of a development that meets
the requirements of clause (a) financially feasible.
The City Council approved the Original Spending Plan in 2021 (after a duly noticed public hearing)
specifically authorizing the City and HRA to take such actions. The HRA filed a copy of the
executed Original Spending Plan approved and signed by the City to the Office of the State
Auditor. The tax increments authorized under the Original Spending Plan were transferred out
of the applicable TIF Funds by December 31, 2022 in compliance with the Act. Under the
Spending Plan, all transferred increments are to be spent, loaned, invested, or otherwise
irrevocably committed by December 31, 2026. Any funds unspent by the deadline, or
subsequently repaid, shall be returned to the originating TIF Fund.
The Spending Plan Assistance provided pursuant to this Plan shall be subject to Minnesota
Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Law”), if applicable, and shall be
subject to the City’s Business Subsidy Policy.
III. UNOBLIGATED TIF FUNDS
The HRA has transferred $9,507,954 in unobligated funds from the TIF Districts under the
authority of the Spending Plan and has identified up to [$775,849] of interest revenue earned on
the transferred funds for a total of [$10,283,803] (the “Unobligated Tax Increments”):
$ 8,465,062 of unobligated funds of the Southdale 2 Tax Increment Financing District,
$ 700,000 of unobligated funds of the Pentagon Park Tax Increment Financing District,
$ 342,892 of unobligated funds of the 70th and Cahill Tax Increment Financing District,
and
[$ 775,849] of interest earnings on transferred increment.ii
IV. PLAN
Under this Spending Plan, the HRA is authorized as follows:
(a) To use Unobligated Tax Increments from the TIF Districts to provide Spending Plan
Assistance for projects qualifying with this Spending Plan and the City Policy for Use of
Unobligated TIF Funs (the "Projects"). Each project shall be considered by the HRA and subject
to approval by the City. The assistance authorized under this Spending Plan is intended to further
the goals in the City’s Comprehensive Plan or other City plans or objectives, if doing so will create
or retain jobs in the state, including construction jobs. The Projects shall commence before
Page 35 of 70
4
December 31, 2026 (unless a later commencement date is authorized by law) and shall constitute
Projects that would not commence by such date without the assistance provided pursuant to this
Spending Plan.
(b) To administratively amend the budgets set forth in the Tax Increment Financing Plans for
the TIF Districts as necessary to provide for the assistance authorized by this Spending Plan.
(c) To take any other action necessary and authorized under the Act in connection with the
construction or substantial rehabilitation of facilities of the type designated for the Spending Plan
Assistance.
(d) To authorize and direct staff to maintain a copy of this Spending Plan with the HRA’s
records for the TIF Districts, and to file a copy of the Spending Plan with the Office of the State
Auditor.
i Sections I and II of this Amended and Restated Spending Plan are intended to identify the program limits.
Projects assisted pursuant to this Amended and Restated Spending Plan shall be in accordance with the
terms and conditions set forth in those Sections.
ii Forecast based on assumed investment rate of [4.00%] on transferred balance to December 31, 2026
spending plan deadline.
Page 36 of 70
Page 37 of 70
2
Page 38 of 70
3
Page 39 of 70
4
Page 40 of 70
Exhibit A
Page 41 of 70
Julie Blaha
State Auditor
STATE OF MINNESOTA
Suite 500
525 Park Street
Saint Paul, MN 55103
New: August 2021
Main: (651) 296-2551 Fax: (651) 296-4755 TTY: (800) 627-3529 State.Auditor@ osa.state.mn.us www.osa.state.mn.us
An equal opportunity employer
Statement of Position
Temporary Transfer Authority (2021 Law)
Tax increment revenue may be spent only as permitted by the Tax Increment Financing Act (TIF Act).1 In
2021, the Legislature enacted expanded, temporary authority to transfer unobligated tax increments for
purposes of assisting private development consisting of the construction or substantial rehabilitation of
buildings and ancillary facilities, if doing so will create or retain jobs in the state.2 Proposed amidst the
COVID-19 pandemic, the enacted law is narrower than initially proposed and is similar to 2010
legislation that temporarily expanded the use of TIF with the aim of stimulating economic recovery after
the Great Recession.3
Authority, Purposes
The new law temporarily permits a development authority to elect, by resolution, to transfer
unobligated increment for certain specified purposes. The new law does not, however, override
requirements to pay bonds to which increments are pledged.
Any transfer under this provision must be for the purpose of assisting private development that meets
all of the following criteria:
(1) it consists of the construction or substantial rehabilitation of buildings and ancillary
facilities;
(2) it creates or retains jobs in the state, including construction jobs; and
(3) construction commences before December 31, 2025, and would not have commenced
before that date without the assistance.4
Developments that would already commence construction prior to December 31, 2025, or those that do
not add or retain jobs in the state, would not be permitted beneficiaries of the transfer.
Transfers must provide the assistance in one or both of the following ways:
(1) by providing improvements, loans, interest rate subsidies, or assistance in any form to the
private development; or
1 The TIF Act is found at Minn. Stat. §§ 469.174 to 460.1794.
2 Minn. Stat. § 469.176, subd. 4n, as enacted by 2021 Minn. Laws, 1st Spec. Sess., ch. 14, art. 9 sec. 1.
3 The 2021 enacted provision does not include transfers to the general fund, nor more-generalized support for businesses
impacted by the pandemic, as was initially entertained. While similar to the 2010 Jobs Stimulus provision, additional details are
included. For information about the 2010 provision, see the separate TIF Jobs Stimulus Program statement of position on our
website.
4 Minn. Stat. § 469.176, subd. 4n(a).
Exhibit A
Page 42 of 70
New: August 2021 2
(2) by making an equity or similar investment in a corporation, partnership, or limited liability
company that the authority determines is necessary to make construction of a development
financially feasible.5
In order to demonstrate compliance with the new provision, an authority may wish to include
affirmation of the qualifications in the written resolution electing to make the transfer. The authority
also should keep documentation that demonstrates that the development created or retained jobs in
the state and that commencement of construction by December 31, 2025, depended on the transfer.
Approvals and Spending Plans
Prior to approving the use of this temporary transfer authority by resolution, a development authority
must also create a written spending plan that authorizes the development authority to provide the
assistance or make the investment that makes the development qualify.6 The plan must detail the use of
transferred increment.7 The OSA recommends identifying planned expenditures using the same
categories identified in TIF plans and TIF reporting (e.g., acquisition, site preparation, financing costs,
etc.), except for a category for administrative expenses, because administrative expenses are not
included in the permissible uses of the transferred increment in the new law.
The municipality (which may or not be the same as the development authority) must also approve the
authority’s spending plan after holding a public hearing.8 The municipality must publish notice of the
hearing in a newspaper of general circulation in the municipality and on the municipality’s public
website at least ten days, but not more than 30 days, prior to the date of the hearing.9
An authority making a transfer under this authority must provide a copy of the spending plan approved
and signed by the municipality to the Office of the State Auditor.10 Plans should be emailed to
TIF@osa.state.mn.us as soon as possible after their approval.
Parameters and Limitations
The authority to transfer increments under this provision expires on December 31, 2022.11 Amounts
being transferred under this provision must be transferred from the fund or account in which tax
increments are segregated and into a separate fund or account by December 31, 2022. Amounts must
not be expended directly from the transferring TIF fund or account, and may not be spent after
December 31, 2022, if they remain in the TIF district’s fund or account at that time.12 All transfers must
be spent by December 31, 2025.13
5 Id.
6 Minn. Stat. § 469.176, subd. 4n(c).
7 Id.
8 Id. A city’s housing and redevelopment authority or economic development authority, for example, may be the development
authority while the city itself is the municipality.
9 Id.
10 Minn. Stat. § 469.176, subd. 4n(e).
11 Minn. Stat. § 469.176, subd. 4n(f).
12 Minn. Stat. § 469.177, subd. 5, requires an authority to segregate tax increment received with respect to any district in a special
account or accounts on its official books and records. This authority allows transfers out of such accounts as opposed to
expenditures from within these accounts.
13 Minn. Stat. § 469.176, subd. 4n(f).
Exhibit A
Page 43 of 70
New: August 2021 3
Transfers from a TIF district in calendar years 2021 and 2022 are limited to a maximum transfer equal to
the excess of the district’s unobligated increment.14 Under the provision, unobligated increment
includes any increment not required for payment of obligations due during the six months following the
transfer on outstanding bonds, binding contracts, and other outstanding financial obligations of the
district to which the district’s increment is pledged.15 Therefore, the transfer of increment for 2021 is
limited to the eligible balance of tax increment at the end of 2020, less amounts needed to pay bonds,
pay-as-you-go notes, and interfund loans due from January 1, 2021, to June 30, 2021. Similarly, the
transfer of increment for 2022 is limited to the eligible balance of tax increment at the end of 2021, less
amounts needed to pay bonds, pay-as-you-go notes, and interfund loans due from January 1, 2022, to
June 30, 2022.
Presumably, receipts of tax increment for the first half taxes in each year would be used to make
payments on outstanding obligations due in the second half of each year, but note that this authority
does not provide any exception to pay those obligations to which tax increment is pledged, and an
authority should not transfer amounts that might impair their ability to make payments on those
obligations.
Increment that is improperly retained, received, spent, or transferred is not eligible for transfer under
this authority.16 Therefore, the 2020 and 2021 balances of tax increment should be carefully evaluated
prior to making transfers in 2021 and 2022, respectively. For example, excess increment calculated for
2019 that might remain in the TIF fund after it should have been returned by September 30, 2020,
would not be eligible for transfer, nor would any subsequent excess increment be eligible for a transfer
after it should have been returned. Likewise, if a district receives tax increment after it should have
decertified under the Six-Year Rule, such amounts of increment would also not be eligible for transfer.
Unspent Transfers
Increment not spent by December 31, 2025, must be returned to the fund(s) of the contributing TIF
district(s).17 The distribution of returned amounts need not be proportional to the amount contributed,
but the amount returned to each TIF district must not exceed the amount transferred from the district.
14 Minn. Stat. § 469.176, subd. 4n(b).
15 Id. Interfund loans are included in the definition of “bonds” in the TIF Act (see Minn. Stat. § 469.174, subd. 3), so payments on
interfund loans should not be foregone to increase a transfer under this authority.
16 Minn. Stat. § 469.176, subd. 4n(d).
17 Minn. Stat. § 469.176, subd. 4n(f).
Exhibit A
Page 44 of 70
d
ITEM REPORT
Date: September 25, 2025 Item Activity: Discussion
Meeting: Housing & Redevelopment Authority
Agenda Number: 8.1
Prepared By: Bill Neuendorf, Economic Dev Mgr,
Stephanie Hawkinson, Affordable Housing
Development Manager
Item Type: Report & Recommendation Department: Community Development
Item Title: Using Tax Increment Financing to Achieve Community Goals
Action Requested:
No action required; for discussion only.
Information/Background:
This discussion pertains to Edina's practice and policy regarding the use of Tax Increment Financing
(TIF) to finance public and private improvements.
Edina has used Tax Increment Financing (TIF) since 1974 to strategically achieve community goals. TIF
was an essential financing strategy to construct several phases of professional offices, medical offices,
retail space, and multi-family apartments, condominiums and townhouses at Edinborough Park and
Centennial Lakes. TIF was also essential to provide public parking in the 50th & France and
Grandview Districts. More recently, TIF was essential to stimulate private investment at Southdale
Center mall and the surrounding commercial areas.
Edina's TIF policy was completely rewritten in 2022 to be more transparent and effective. The
purpose of this discussion is to consider changes in the application and use of TIF to better achieve
community goals.
Resources/Financial Impacts:
None.
Relationship to City Policies:
Comprehensive Plan, Tax Increment Financing Plan, Budget Values and Budget Pillars
Supporting Documentation:
1. TIF Policy Discussion Staff presentation 9-25-2025
2. Edina TIF Policy - approved 12-20-2022
Page 45 of 70
Policy Discussion
Using Tax Increment Financing to
Achieve Community Goals
Staff Presentation to:
Edina HRA Board
September 25, 2025
Housing & Redevelopment Authority
Page 46 of 70
Purpose
Housing & Redevelopment Authority
Members of the HRA Board have raised questions about how Edina uses Tax
Increment Financing to support community redevelopment.
•Background
•2022 TIF Policy
•Discussion Topics
If the HRA Board would like to see changes in TIF Policy, staff will
conduct additional research and prepare proposed changes for future
consideration.
2
Page 47 of 70
TIF in Edina - Background
Housing & Redevelopment Authority
•Limited and regulated by Minnesota Statute
•Used to achieve Edina community goals since
the early 1970s
•Edina’s TIF Policy completely rewritten in
2022
•Edina tends to apply higher community
standards than mandated in Statute
•12 active TIF Financing Districts
•Each Financing District uniquely established
to address the needs and opportunities
3
Page 48 of 70
TIF in Edina – Guided by 2022 Policy
Housing & Redevelopment Authority
In 2022, Edina’s TIF policy was completely rewritten to be more transparent,
effective and results-oriented.
•Only use when necessary to achieve desired outcomes
•Limit the size and duration
•Retain flexibility to address unique challenges and opportunities
•Prefer to keep financial risk with real estate developer
•TIF contribution limited to value of public benefits delivered
•Maintain roles of HRA Board (financial) and City Council (regulator)
separate and distinct
4
Page 49 of 70
Discussion Topics
Housing & Redevelopment Authority
1)Is City policy driving the need to use TIF more frequently?
2)Is there a preferred order and timing to consider TIF?
3)How should Edina’s Budget Pillars and Values be applied?
4)Should TIF be used only for specific types of costs?
5)Should the strategy of using TIF be modified to be
programmatic rather than project/outcome-based?
5
Page 50 of 70
1) Is City policy driving the need to use TIF more frequently?
Housing & Redevelopment Authority
Common hurdles that hinder new
investment and tax base growth
1)High cost of land and land assembly
2)High material and labor costs
3)High financing costs
4)Phased delivery of large sites
5)Demolition of old buildings
6)Environmental remediation of soil and water
7)Lack of modern utilities
8)Lack of public sidewalks, roadways, plazas, etc
9)High costs of structured parking
10)High entitlement and regulatory costs
11)Foregone revenue from affordable units
6
Page 51 of 70
2a) Is there a preferred order and timing to consider TIF?
Housing & Redevelopment Authority
•Current Policy calls for Zoning
consideration and Financing
requests to be separated in
sequential order.
•This effectively separates the City’s
regulatory role from the HRA’s
financing role.
•Financing terms are discussed only
after preliminary zoning is approved
•If preliminary zoning is denied,
there is no further discussion of
financing
Suggested Change to Consider – Sequential
Consideration
1)Financing discussion occurs with HRA prior to formal
zoning consideration by City Council
•Advise developer whether TIF financing will be considered
•Slightly reduces financial risk for the developer
•Increases staff review time
•May be helpful to limit land price
•Allows Council to make Zoning decisions with general idea
of financial needs
•Prompt review will be required to satisfy State Law to
make zoning decisions within 120 days
2)Eligible TIF expenses and high priority public benefits
could be identified before a formal Zoning application
is considered
3)Precise financial gap will not be known at this early
stage
7
Page 52 of 70
2b) Is there a preferred order and timing to consider TIF?
Housing & Redevelopment Authority
•Current Policy calls for Zoning
consideration and Financing
requests to be separated in
sequential order.
•This effectively separates the City’s
regulatory role from the HRA’s
financing role.
•Financing terms are discussed only
after preliminary zoning is approved
•If preliminary zoning is denied,
there is no further discussion of
financing
Alternate to Consider – Simultaneous Consideration
1)Have Zoning and Financing discussions occur at the
same meeting (concurrently rather than sequentially)
•Allows Council to make Zoning decisions fully aware of
financial needs – but financing is not a valid reason to
deny Zoning requests
•Creates more financial risk for the developer
•Expedites critical decisions
2)High level term sheet could be considered by City
Council, the same night action is taken on Zoning
matters
3)The precise financial gap may not be known at time of
final approval. Specific financial details – including
the amount of TIF financing - will be refined, after
zoning and site approvals are issued. This is a
significant change from current strategy.8
Page 53 of 70
2c) Is there a preferred order and timing to consider TIF?
Housing & Redevelopment Authority
Sketch
Plan
Preliminary
Zoning
TIF Term
Sheet
(HRA)
Final
Zoning &
Site Plan
Approval**
TIF
Financing
Agreement
Sketch
Plan
(brief) TIF
Term
Sheet
(HRA)*
Preliminary
Zoning
Final
Zoning &
Site Plan
Approval**
TIF
Financing
Agreement
Current
Process
Suggested
Process
Alternate
Process
Step 1 Step 2a Step 2b Step 3a Step 3b
Sketch
Plan
Preliminary
Zoning and
(brief) TIF Term
Sheet (City)*
Final Zoning &
Site Plan
Approval ** and
TIF Financing
Agreement
Step 1 Step 2 Step 3
9
*Early financial commitments are essential for affordable housing projects seeking tax credits
** 120 day limit for zoning applications
Page 54 of 70
3a) How should Edina’s Budget Pillars and Budget Values be
applied?
Housing & Redevelopment Authority
Budget Pillars
StrongFoundation:
Maintain physical assets and
infrastructure
Reliable Service:
Maintain service levels that
best meet community needs
Livable City: Plan for
connected and sustainable
development
Better Together:
Foster an inclusive and
engaged community
•Increase the property tax base
•Enable new affordable housing
•Enable new employment
•Enable amenities and
attractors
•Provide support only when needed and
with minimal impact to tax levy
•Support new roadways, sidewalks and
public realm spaces
•Support updated utilities
•Remediate environmental contaminants
•Support sustainable, climate resilient
design
•Support projects that retain Edina’s
reputation as an upscale destination
•Support affordable housing•Consider different perspectives
•Apply open and transparent
process
•Consider short- and long-term
community outcomes 10
Page 55 of 70
3b) How should Edina’s Budget Pillars and Budget Values be
applied?
Housing & Redevelopment Authority
Budget Values
Stewardship: We make wise
investments that focus on the best
long-term value for residents.
Equity: provide equitable
opportunities for people to participate
in their City government and access
City institutions, facilities, and
services.
Health: use a Health-in-All
Policies approach (HiAP) to promote
and protect the physical, mental, and
social wellbeing of all people who
live, work, or visit Edina.
Sustainability: … policies,
decisions, and plans have a positive
impact on people and the planet now
and for future generations.
Is TIF investment in a
particular type of project
preferred?
How can TIF investments be used to
provide equitable outcomes for
people?
How can TIF investments
promote the overall well-
being of community
members?
How can TIF investments achieve
long-term outcomes for future
generations?
11
Page 56 of 70
4) Should TIF be used only for specific types of costs?
Housing & Redevelopment Authority
Minnesota TIF Statutes limits eligible costs to
the following categories:
a)Land acquisition
b)Demolition and environmental
remediation
c)Utility and site work
•Sidewalks, trails, plazas, landscaping, etc
d)Public Improvements including: roadway
and transportation systems
•Bridges, tunnels, retaining walls, etc
e)Parking
f)Design and administrative costs
g)Some construction costs, primarily
affordable housing
h)Financing costs
Additionally, Edina’s TIF Policy:
i)limits the TIF contribution to the value of
public benefits delivered and
j)does not allow TIF for parking that is
exclusively used for private purposes
Possible Changes to Consider:
•Are there any expenses that should be
prohibited from TIF reimbursement in
Edina?
Staff recommends flexibility to select costs that make
the project viable and deliver public benefit.
12
Page 57 of 70
5) Should Edina’s TIF strategy be modified to be programmatic
instead of project/outcome-based?
Housing & Redevelopment Authority
•Current TIF policy is
performance-based to readily
address the unique challenges
and opportunities of each site
when they arise
•This approach was worked
successfully through many
decades and several economic
cycles
Possible Changes to Consider:
Establish programs with pre-established limits:
1)TIF for affordable housing
2)TIF for infrastructure
3)TIF to incentivize redevelopment of specific sites
4)TIF for other unique needs
Programs can be easier to apply but can have negative
consequences:
•Nearly impossible to pre-define the needs of future projects
•Likely to increase the number of projects that seek TIF
•Likely to increase the amount of TIF pledged
•Strict program rules may be insufficient to fill the financing
gap of more complex projects
•Will require customization to address unique needs of each
project 13
Page 58 of 70
Housing & Redevelopment Authority
Nolan Mains
US
Bank D’Amico
Edina
Theatre
Edina
Grill
Pajarito
W. 50th Street
France AvenueFrance AvenueHazelton Road
York AvenueEdina Promenade & Three Rivers Bike Trail
Discussion
If the HRA Board would like to see changes in
TIF Policy, staff will conduct additional research
and prepare proposed changes for future
consideration.
14
Page 59 of 70
☒City Council Approved: 2011
☐City-Wide Revised: 12/20/2022
☐Department
City of Edina Policy
Tax Increment Financing Policy
BACKGROUND
The City of Edina has statutory authority to use Tax Increment Financing (TIF) pursuant to Minnesota State
Statutes Section 469.174-469.1799 (the TIF Act). TIF uses the increased property taxes generated by new real
estate development within defined geographic districts to pay for certain costs associated with new development
(including but not limited to affordable housing) as well as related public infrastructure and public realm spaces.
The City’s mission is “…to provide effective and valued public services, maintain a sound public infrastructure,
offer premier public facilities and guide the development and redevelopment of lands, all in a manner that sustains
and improves the health and uncommonly high quality of life enjoyed by our residents and businesses.” (Source:
2015 Vision Edina).
The land within the City boundaries has been substantially built-out for more than a decade and many of the older
properties are in the “redevelopment” phase. In order to construct a new structure, an older structure that is
unsound, outdated, or obsolete must typically be removed.
In most cases, development projects in Edina are privately funded using traditional debt and equity sources. From
time-to-time, however, the City has found it necessary to provide financial support for development projects that
deliver outstanding benefits to the community and that could not be accomplished without public financial
involvement.
As early as the 1970s, the City used TIF to help deliver desired commercial and multifamily development served
by public infrastructure elements including roads, sidewalks, utilities, public parking, and public realm spaces like
parks and plazas. TIF was essential to construct the commercial, residential and public elements at Edinborough
Park and Centennial Lakes Park (including affordable housing). TIF was also essential to fund public parking at 50th
and France and to transform the Grandview District from an industrial area to a mixture of residential,
commercial and civic uses with public parking. Historically, Edina has taken a more restrictive view on the use of
TIF than allowed by Minnesota Statute.
Page 60 of 70
City of Edina
Tax Increment Financing Policy
Page 2
PURPOSE OF POLICY
While most redevelopment projects in Edina are privately financed, on certain occasions, the City may
find it necessary to provide financial support in order to overcome unusual hurdles and to achieve
extraordinary benefits to the general public. The purpose of this policy is to:
• Limit the use of TIF to only projects that deliver permanent benefits to the general public that are better than
the minimum established in City Code
• Clarify that the use of TIF in Edina will be more limited than allowed by Minnesota Statute
• Establish criteria and guidelines for where new TIF Districts are established and how incremental taxes are
utilized in Edina.
• Ensure that TIF is used in a transparent, consistent and equitable manner to provide value to the community.
• Ensure that TIF is used to deliver both short-term and long-term improvements that are a benefit to the
general public in Edina.
This policy provides guidance to developers, property owners, staff, and the community at large regarding Edina’s
use of Tax Increment Financing as a public finance tool to attract and support high quality development that
contributes to a strong property tax base and to the high quality of life in Edina. For the purpose of this policy, the
“City” shall also mean the Edina Housing and Redevelopment Authority (HRA), which assists in a variety of
housing, redevelopment, and economic development activities for the City of Edina.
PUBLIC BENEFITS PURSUED WITH TIF
In addition to the Minnesota TIF Statutes, Edina applies an additional expectation that the use of TIF will deliver
permanent benefits to the general public other than tax base growth. Edina’s Comprehensive Plan establishes
guidance for the anticipated changes in land use and related systems for the next decade. Most land use changes
are anticipated to occur in commercial and industrial areas. Many of the preferred outcomes identified in the
Comprehensive Plan include changes to transform single use sites to mixed uses that provide a strong tax base,
improved connectivity and access for drivers, bicyclists and pedestrians. When necessary, TIF can be used to
achieve many benefits to the community, including:
• Transformational change of properties in a manner compatible with Comprehensive Plan, Small Area
Plans, Development Framework, Sustainability Policy, New Multifamily Affordable Housing Policy and
other Guidelines adopted by the City
• Improvements to the multi-modal transportation network, including roads and infrastructure for motor
vehicles, pedestrians, bicyclists and transit
Page 61 of 70
City of Edina
Tax Increment Financing Policy
Page 3
• Public realm improvements, including green space and placemaking elements including landscaping,
streetscaping and public art
• Public parking facilities that provide shared parking resources for more than one property
• Improvements to public utility networks; including potable water, fire protection, storm sewer and
sanitary sewer
• Stormwater retention and detention systems that benefit more than one property
• Removal of substandard buildings (as defined in MN Statute) that may have a blighting effect on the
community
• Preservation of buildings that are historically or culturally significant to the community
• Remediation of environmental contamination
• Creation and retention of long-term affordable housing at a variety of below-market price points
• Creation and retention of permanent employment opportunities
I. PROCEDURAL CONSIDERATION OF TIF
1) Authority rests with City Council. Consideration to establish a new TIF District shall be at the sole
discretion of the City Council. Administration and determine of specific uses of incremental property
taxes generated therein shall be at the discretion of the City Council or HRA. Since each development
project is unique, the use of TIF shall be considered on a case-by-case basis.
2) Preparation of TIF documents. The Edina Housing and Redevelopment Authority shall provide initial
direction regarding the potential use of TIF, shall review the Term Sheet that identifies the proposed use
of TIF on each project and shall review and approve the contractual documents such as TIF Agreements.
3) Eligible Applicants. Only current property owners or developers that have site control are eligible to apply
for TIF. Evidence of site control shall be provided in the TIF Application.
4) Negotiation of TIF terms. After the TIF Application is submitted, the developer shall negotiate financing
terms only with the City Manager, HRA Executive Director or designee. The prepared terms and
proposed contract shall then be presented to the HRA Board and the City Council as a whole.
5) Application Form. Developers that request TIF shall submit a completed application in a form approved by
the City Manager or HRA Executive Director. The application shall identify the anticipated financing
sources, including equity, type of debt, external grants/contributions, and the amount and type of TIF
support requested to resolve the financing gap. A complete development sources and uses pro forma shall
Page 62 of 70
City of Edina
Tax Increment Financing Policy
Page 4
be submitted, as well as an operating pro forma based on a stabilized project. The application shall include
calculations that identify the financing gap. This information is required to determine the “but for” test
required under the TIF Act. The application shall also identify extra-ordinary costs to develop the project
in Edina and shall also identify the exceptional public benefits that could be delivered if the project is
completed. The Application shall also address other criteria identified in this document.
6) Application Fee. The application fee shall be $10,000. Fifty percent (50%) of the fee shall accompany the
initial application. The remaining fifty percent (50%) shall be due after the confirmation of a Term Sheet
and prior to the preparation of full contractual documents. Application fees are non-refundable.
7) Use of Third-party Expert Advisors. Expert advisors shall be engaged by the HRA as necessary to ensure
compliance with the TIF Act and to provide expertise to supplement the abilities and capacity of staff.
Typical advisors have expertise in TIF law, public sector development finance, general development
finance, property inspection as it pertains to TIF, and real estate valuation, among other redevelopment
topics. All advisors shall be contracted to the HRA and shall uphold the interests of the HRA and the City
while providing service.
8) Developer Responsible for Fees. The developer shall be solely responsible for the payment of third
expenses pertaining to the developer’s request for TIF support from the time of the request to the
delivery of the Certificate of Completion. Prior to preparation of the Term Sheet, the applicant shall
submit to the City a deposit equal to the total estimated costs for legal and consultant fees. These funds
will be held in a non-interest-bearing escrow and the City will draw upon these funds to pay all related
expenses. Additional funds may be necessary if the scope of the work changes beyond the initial
expectation. Any unused balance shall be returned to the developer upon completion of the process. The
developer shall also be solely responsible for any costs related to requested amendments to the TIF
District or TIF Agreements.
9) Initial Staff Response and Notification of HRA Board. City staff shall review and evaluate the Application
for compliance with the City’s policies. Soon after receipt of a TIF Application, staff should advise the
Edina HRA about the TIF request including the potential public benefits delivered if TIF would be
provided. Staff will then seek approval to engage third party advisors to fully vet the merits of the TIF
request.
10) Preparation of Term Sheet. Staff shall prepare a Term Sheet that summarizes the key terms by which TIF
could be used for the project. The Term Sheet shall be submitted to the Edina HRA for review and
consideration. The Term Sheet should generally be considered simultaneously or soon after preliminary
zoning approval is obtained. The HRA should provide verbal indication whether they are agreeable to
preparation of binding contracts (commonly known as TIF Agreements) based on the Term Sheet.
11) Creation of TIF District. After consideration of the Term Sheet, staff shall begin the process of establishing
a TIF District to achieve the goals outlined in the Term Sheet.
Page 63 of 70
City of Edina
Tax Increment Financing Policy
Page 5
12) TIF Agreement. Staff shall work with legal and financial advisors to prepare complete and binding legal
agreements based on the Term Sheet. The TIF Agreement should be considered by the HRA Board
and/or the City Council after final zoning approval is obtained.
13) Building and Zoning Approvals. The provision of TIF is contingent upon receiving all other necessary
project approvals from the City.
II. FINANCIAL REPORTING AND TRANSPARENCY
1) Mandatory Reporting. The City shall submit all required reports on the use of Tax Increment Financing to
Hennepin County and the Minnesota Office of the State Auditor using the format provided by those agencies.
2) Year in Review Report. Each year, staff shall publish a report that summarizes the use of TIF written in plain
English style. This report shall include the following information for each active TIF District: start and end
dates, debt and contractual obligations, tax collection status, tax base status, and other pertinent information.
This report shall also quantify outcomes when TIF is used to achieve public benefits. This report should be
delivered to the Edina HRA in January and shall be made available to the applicable School District(s) and to
the general public upon request.
3) Website. The City shall post general information on the use of TIF in Edina on the City website.
III. ESTABLISHMENT OF TIF DISTRICTS
1) Preparation of TIF Plan. The HRA’s Financial Advisor shall prepare the TIF Plan to satisfy the requirements of
Minnesota TIF Statutes. The TIF Plan should be written in plain English style. The TIF Plan should describe the
intended redevelopment and/or housing outcomes and should identify how the use of TIF will help achieve
community goals as defined in the Comprehensive Plan and related plans.
2) Type of District. The type of District established shall be determined by the City Council in accordance with
the limitations contained in Minnesota Statute.
3) Boundaries and Term. The boundaries of each new district should be as small as necessary to achieve the
development goals of the subject properties and adjacent public areas. When establishing a new TIF District,
the shortest statutory term to achieve the desired outcomes should be considered. A longer term should be
considered when pooling is desired.
4) Impact on Municipal Services. The impact of the proposed project on the City’s delivery of services, capital
expenditures and operating expenditures shall be taken into consideration prior to the adoption of a TIF Plan.
5) Fiscal Disparities. Projects utilizing TIF are responsible for paying their share of the Fiscal Disparities
contribution from the property taxes generated from the project and within the boundaries of the District.
Page 64 of 70
City of Edina
Tax Increment Financing Policy
Page 6
6) Community engagement. The City shall follow standard protocol and processes for collecting community
input on every proposed TIF district. At a minimum, this typically includes advance notice, online engagement
and in person public meetings.
7) Input from School District and County. A draft of the TIF plan shall be provided to Hennepin County and to
the school district where the district is located for review and comment prior to the public hearing.
8) Establishment of District. Unless unique circumstances apply, establishment of a TIF District should coincide
with the execution of one or more TIF Agreements capable of satisfying the outcomes identified in the TIF
Plan.
9) Early De-certification. Within one year after the 5-year statutory deadline, the City should consider early
decertification of the District if no debts or contractual obligations for the incremental taxes remain. Within
one year after all debts and obligations have been satisfied, the City should consider whether to de-certify the
District early. Consideration should be given to the potential benefits from pooling available funds before the
District is de-certified.
IV. EXPECTATIONS FOR TIF SUPPORTED REDEVELOPMENT PROJECTS
1) Site Plan. The site plan for any project supported with TIF shall be designed to substantially follow the
regulations and guidelines as adopted in Edina’s Comprehensive Plan, Small Area Plans, Development
Framework and Southdale Design Experience Guidelines (where applicable). The expected quality and nature
of site plan improvements is highest when TIF is contributed. Projects supported with TIF shall fully satisfy
each of the following aspects as described in adopted plans and guidelines and as approved through the City’s
typical zoning review / site plan review process:
a. Subdivision of superblocks to establish a transportation grid with walkable, human-scale blocks
appropriate for the size, length and width of the property
b. Creation of new streets, sidewalks and trails to allow through traffic by the general public (recognizing
that redevelopment of neighboring parcels may be necessary to complete the through route)
c. Creation of new public realm spaces including streetscaping, lighting and public art
d. Minimum building setbacks (such as 30 ft and 50 ft in the Greater Southdale District) should be
considered “build to” lines
e. Applicable street room typologies implemented
f. Massing, recessed upper floors, building articulation, and fenestration provided
g. Perimeter spaces that front a public street or similar route with public easement shall be occupiable and
activated. Storage, parking, and utility spaces shall be kept to the bare minimum along public routes
Page 65 of 70
City of Edina
Tax Increment Financing Policy
Page 7
The provisions of this policy are not intended to require an additional site plan review process. The City
Council shall make the final determination of whether the site plans adequately abide by the Comprehensive
Plan and other adopted codes, plans and guidelines to warrant the use of TIF.
2) Exterior Finish Materials. The types of finish materials on portions of the building directly visible from a street
or other public realm space shall comply with Edina’s City Code. For TIF supported projects, a high degree of
stone, brick and other natural materials is preferred.
3) Public Realm Experience. A vibrant and welcoming public realm experience is essential for every project
supported with TIF. Examples of contributing elements include (but are not limited to): sidewalks wider than
required by City Code, public plaza, public seating areas, integrated transit shelters, landscaping, hardscaping,
commercial storefronts and residential walk-up units that directly engage the public realm areas. Under the TIF
Act, reimbursement through TIF for public realm amenities will need to be reviewed on a case-by-case basis,
but will be required even if not subject to TIF reimbursement.
4) Public Art. Projects supported with TIF shall incorporate permanent public art as an integral part of the public
realm experience. Each public art installation shall be secured with an easement that provides for the
maintenance and permanence of the art element by the owner. The public art elements shall be consistent with
those contained in the approved site plans. Additional art elements may be required when TIF is contributed.
Examples of additional art elements include but are not limited to: sculptures, murals, sidewalk poetry, water
features, light and sound displays, and rotating art installations. City Council shall make the final determination of
whether the quantity and type of public art elements warrant the use of TIF. Under the TIF Act, reimbursement
through TIF for public art will need to be reviewed on a case-by-case basis, but public art will be required even if
not subject to TIF reimbursement.
Members from the Edina community shall be engaged as part of the artist-selection process and/or the art-
selection process. The developer shall make the final art selection keeping in mind the recommendation and
input from the community members.
5) Public dedication or public easements. All public benefits in TIF supported projects shall either be owned by the
City or HRA, dedicated to the City or be secured with permanent easements (to the City) or restrictive
covenants to ensure that the public has long-term access to and long-lasting benefits from the improvements.
6) Affordable Housing Units. Multi-family development projects supported with TIF should incorporate any
required affordable units into the site, as opposed to providing the prescribed contribution to Edina’s
Affordable Housing Trust Fund.
7) Public Parking. Only those parking stalls that are available to the general public throughout all times of the day
and year shall be considered to be supported with TIF. Parking stalls that are dedicated for the exclusive use by
residents or tenants will not be eligible for TIF support. The public parking stalls shall be easily identified as
public parking with exterior signage near the entrance and wayfinding signage on the site.
8) Environmental Sustainability. Edina’s Sustainable Buildings Policy shall apply to all projects supported with TIF.
For TIF-supported projects, the applicable Sustainable Building Rating System shall be LEED Silver or better.
Additionally, electrification of heating systems and/or on-site renewable energy generation are preferred in TIF-
Page 66 of 70
City of Edina
Tax Increment Financing Policy
Page 8
supported projects; projects should achieve at least 2 total LEED points between Grid Harmonization and
Renewable Energy credits. Certification of the completed building(s) shall be required and compliance shall be
renewed (by the owner) throughout at least the term of the TIF District at the frequency identified by the
certifying agency.
9) Collaborative Partnerships. The developer should engage local neighborhood groups and other community and
regional organizations to provide the highest reasonable level of collaboration to ensure a successful project.
Community partners could include business and trade associations, private and non-profit groups and
associations, governmental agencies and similar stakeholders and benefactors. Evidence of effective engagement
should be provided in the TIF Application. This collaborative approach is also helpful to secure grants from
other agencies.
10) Mitigation of Construction Disruption. As part of the Go-Ahead letter by which the developer commits to
proceed with the project and prior to the site preparation and construction, a Construction Mitigation Plan
(CMP) shall be submitted to the City that identifies the developer’s and general contractor’s strategies to
address the inconveniences that occur to the neighbors and general public during the construction period.
Topics to be addressed in CMP include: milestones and methods to provide advance notice to neighbors; off-
street parking for contractors and suppliers; delivery routes for construction vehicles; queuing locations for
large vehicles serving the construction site; temporary street, lane or sidewalk closures; temporary detours for
vehicles, pedestrians, bicycles and transit vehicles; construction site security; and strategies to mitigate dust,
vibrations and noise. The CMP must also identify the responsible person to be contacted by neighbors when
questions or problems occur. Phone number and email address of the responsible job site person shall be made
available.
11) Fair Labor standards. The developer and general contractor shall certify that all applicable state and federal
labor laws have been satisfied and shall allow third party inspections or other means of confirming compliance.
Failure to comply with applicable state and federal labor laws shall be considered a default with appropriate
penalties.
12) Actions to Promote Diversity and Equity in Redevelopment. The development and construction of projects
with TIF support shall include best efforts by the developer and general contractor to provide employment
opportunities for people that are under-represented in the construction field, including women and people of
color. Similar efforts shall be made to structure contracts so that businesses owned by people under-
represented in the construction industry (including majority women-owned, majority minority owned, certified
MBE, WBE and VBE) have a fair and realistic opportunity to provide goods and services to the project.
The developer’s plan and strategy to achieve these goals (commonly referred to as Equity and Inclusion
Outreach Plan or EIOP) shall be included in the TIF Agreement. The plan shall identify employment and
contracting goals for women and people of color. The plan must also include an intentional strategy to pursue
and achieve these goals to the greatest extent practical. The plan shall also include the developer’s and general
contractor’s practices to pursue equity, including how they participate in workforce development programs and
similar activities in the Twin Cities.
Page 67 of 70
City of Edina
Tax Increment Financing Policy
Page 9
Standards and recommendations from State of Minnesota Department of Human Rights, Hennepin County and
similar local and regional agencies and trade associations shall be considered as guidance when identifying these
goals and strategies.
As a condition of the Certificate of Completion, the developer shall report on the implementation of the plan
as well as the outcomes. Penalties shall apply when the developer fails to make a good faith effort to implement
this plan.
V. USE OF TIF IN EDINA
1) TIF to deliver public benefits. TIF will only be used to enable a developer to complete a project that delivers
exceptional public benefits. An increase in property tax base alone is not sufficient to warrant the use of TIF.
TIF shall also be used as a means to finance public infrastructure improvements carried out by the City.
2) “But for” Test. Any use of TIF shall be subject to the “but for” test as prescribed in Minnesota Statute; meaning
that “but for” the use of TIF, a project of the size, scale and quality proposed would not occur. The public
benefits delivered by the project would also not occur on the site without the use of TIF.
3) Final Site Plan Approvals. Requests for TIF support after preliminary zoning has been granted may result in
changes to the preliminary site plan to comply with this TIF policy. Any delays or costs due to a re-review are
the sole responsibility of the developer.
4) Financial Gap. TIF should only be considered to fill a financial gap that is unable to be satisfied by traditional
equity and debt sources. TIF assistance will not be provided to projects that have the financial feasibility to
proceed without the use of TIF. TIF will not be provided solely to provide an excessive contingency to the
project or broaden a developer’s profit margins on a project.
5) Developer’s Capital Stack. TIF should be considered the last money into the deal for market-rate projects
provided with TIF support. This includes multi-family housing where 20% or fewer of the units are affordably
priced in accordance with Edina’s multifamily affordable housing policy.
6) Pay as You Go TIF Notes. TIF should only be provided to developers of market-rate projects on a pay-as-you-
go basis. In certain cases, up-front or other forms of assistance may be considered by the City but will be at the
sole discretion of the City Council or HRA. Bonding or any other appropriate means of financing, supported
with TIF revenue should be used by the City to carry out public infrastructure improvements within the TIF
District.
7) Interest Rate. The interest paid on TIF Notes shall be consistent with the typical interest rate paid in the
marketplace for the type of project. The interest rate paid on the TIF Note should not exceed the interest rate
underwritten for the permanent financing.
Page 68 of 70
City of Edina
Tax Increment Financing Policy
Page 10
8) Deviations from Policy. The City reserves the right to approve or reject the use of TIF, the amount of TIF, and
the total term, on a case by case basis, taking into consideration established policies, project criteria, and
demand on services in relation to the potential benefits from the project. Deviations from this policy shall be
allowed if specifically approved by the City Council or HRA.
9) Impact on City Services. TIF will not be used to support development projects that place excessive demands on
municipal services or other capital or operating expenditures of the City.
10) Financial Analysis. The applicant shall provide to the City and its financial advisor all information necessary to
conduct a financial analysis of the proposed project. This information must be complete and accurate.
Falsification or manipulation of the financial information shall be terms for immediate disqualification of
consideration.
11) Financial Returns to Developer. The financial returns to the developer shall be within the typical industry
norms for the type and scale of the project. The use of TIF shall be limited to increasing the returns to the
lower level of the normal range.
12) Projections of Incremental Taxes. The Financial Advisor shall use realistic projections for the value of
incremental taxes generated over time. The amount of TIF pledged shall not exceed the amount projected to
be generated from the completed project.
13) Access to Complete Site and Project Information. Prior to approval of the Term Sheet, the developer shall
provide any surveys, required market and financial feasibility studies, appraisals, environmental studies, soil
boring information for the project, and other information or data that the City or its legal and financial
consultants may require in order to proceed with an independent underwriting. Such information is subject to
the Minnesota Government Data Practices Act and may be public information at the time of submission.
Proprietary information will be kept non-public to the extent allowed by Minnesota statute.
14) Financial Guarantees. In the event that a type of TIF support other than Pay-as-you-go Note is used, the
developer shall provide adequate financial guarantees to ensure completion of the project and the repayment of
the tax increment financing in the event that the project fails to be completed. Types off guarantees may include,
but are not limited to, assessment agreements, insurance, letters of credit, etc.
15) Developer experience and capacity. Any developer requesting TIF shall demonstrate past success in real estate
development as well as specific capability in the type and scale of development proposed. As part of the TIF
Application, the developer shall submit a list of critical members of the development team that identifies
professional qualifications and references.
16) Inflated Fees not acceptable. The developer fees, soft costs and operating expenses included in the pro forma
must be reasonable and typical for the industry. Inflated fees, unreasonable expense categories and excessive
contingencies will not be accepted.
Page 69 of 70
City of Edina
Tax Increment Financing Policy
Page 11
17) Look back. The TIF agreement will include “look back” provisions to ensure that the TIF was actually needed
and shall include early termination of TIF Note payments and/or “claw back” provisions if it is determined that
TIF was not needed at the level identified in the TIF Agreement. The clawback provision may be waived for tax-
credit and similar affordable housing developments.
18) Real Estate Transactions. TIF shall not be used when land acquisition costs exceed market land costs.
Acquisition costs shall be scrutinized to ensure that the purchase price is fair and reasonable in relation to
recent comparable transactions. If deemed necessary by the City, a current real estate appraisal prepared by an
independent appraiser selected by the City shall be provided to validate the fair market value of the land in as-is
condition. A high purchase price alone is not sufficient to warrant the use of TIF.
19) New and Retained Job Opportunities. When jobs are created or retained, preference should be given to jobs
that are not currently located within the City. TIF will not be used for projects that would give a significant
financial advantage over similar businesses located in the City.
20) Maximum TIF contribution. The principal amount of TIF shall be justified by the “but for” evaluation and shall
not exceed the value of exceptional public benefits delivered by the completed market rate project.
21) Delivery of TIF Note(s). TIF Notes shall only be delivered to the developer (and be interest-bearing and
payable) after the completion of the full project, delivery of the public easements, issuance of Certificate of
Occupancy, certification of final costs, documentation of final equity and inclusion outcomes and other key
parameters identified in the TIF Redevelopment Agreement. A Certificate of Completion shall be issued by the
City/HRA to confirm completion of all TIF related requirements.
22) Park Dedication Fees. When TIF is used to support development of new outdoor publicly available spaces such
as public plaza, public courtyard or similar public space, the value of such spaces shall not be deducted from any
Park Dedication Fees due from the market-rate redevelopment project.
23) Grant Funding. Grant funding from other agencies shall be pursued when TIF is used for a development project.
The amount of TIF provided may be reduced depending on the amount of grant funding received. The total
grant funding received shall be included in the pro formas when the “look back” is calculated.
24) Business Subsidy Laws. The City will require compliance with the State of Minnesota Business Subsidy Laws in
Minnesota Statutes, Section 116J.993 through 116J.997, unless the project meets one of the business subsidy
exceptions.
25) Pooling. When pooled TIF funds are available from a different TIF District, their use should be prioritized to
provide affordable housing in a greater amount, longer term, or lower target income than what is usually
achieved using other City policies. Other uses of pooled funds shall be at the direction of the City Council or
HRA.
# # #
Page 70 of 70