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HomeMy WebLinkAbout2025-10-16 HRA Special Work Session Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN Housing & Redevelopment Authority Meeting Agenda Thursday, October 16, 2025 7:30 AM 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. Meeting Topics 3.1. Provide Feedback for Preparation of a Request for Proposals (RFP) for the out-lot south of Fire Station 2 at 4401 76th Street West for residential use, including affordable housing. 4. Adjournment Page 1 of 21 d ITEM REPORT Date: October 16, 2025 Item Activity: Discussion Meeting: Housing & Redevelopment Authority Agenda Number: 3.1 Prepared By: Stephanie Hawkinson, Affordable Housing Development Manager Item Type: Report & Recommendation Department: Community Development Item Title: Provide Feedback for Preparation of a Request for Proposals (RFP) for the out- lot south of Fire Station 2 at 4401 76th Street West for residential use, including affordable housing. Action Requested: Provide Feedback for Preparation of a Request for Proposals (RFP) for the out-lot south of Fire Station 2 at 4401 76th Street West for residential use, including affordable housing. Information/Background: When 4401 76th Street West was selected for the new Fire station 2 site in 2022, it was communicated that the site was large enough to accommodate the fire station and provided an opportunity to develop the land to the south of the station referred to as the “out-lot”. The City purchased the property for $15.3 million with the understanding that the site would be subdivided to allow the new fire station to be constructed in phase one and the out-lot would be redeveloped as phase two. The City hired BKV architects and planners to design the new Fire Station 2 and prepare conceptual site plans illustrating different ways to subdivide the site to reflect the goals of the Greater Southdale District Plan. In March 2023, during Fire Station 2 sketch plan review, BKV Architects proposed a residential development on the south side of the parcel, the out-lot, and at that time the City Council decided to focus on the new fire station first. Future planning of the out-lot has been paused since that time. One Council directive was to design and construct the roadway surrounding the new fire station as a public roadway enabling future redevelopment of the out-lot. The site is currently vacant and tax exempt. On May 21, 2024, staff presented to Council possible redevelopment opportunities for the out-lot. Before sharing possible options to Council, staff engaged city departments to determine if there would be a future internal need fulfilled by the out-lot. No needs were identified through this discovery process. In August of 2024 the Edina Housing Foundation expressed interest in overseeing the development of the out-lot, but it was determined more discussion was needed. Resources/Financial Impacts: The resource used at this stage is staff time. Relationship to City Policies: A process will be developed within the parameters of the budget pillars and values. Page 2 of 21 Budget Pillar: Livable City Values Impact: Engagement The Request for Proposals will build upon engagement practices already employed, honoring the residents' time in guiding the Greater Southdale District Plan, Comprehensive Plan, and the Climate Action Plan. The RFP will also address concerns raised in the Community survey that highlighted the need for more housing options, first-time home-buyer opportunities, and the ability to age in the community. Including affordable housing fosters a sense of belonging by providing stable, inclusive communities where all residents feel valued and connected. Equity Including a focus on creating access to affordable housing provides opportunities to minimize housing disparities that disproportionately impact people of color, seniors, and people with disabilities. Sustainability The RFP will call out the need to enhance the City's Climate Action Plan. Affordable housing and climate action are closely related because the way homes are built and where they are located contributes to community greenhouse gas emissions. Building sustainable, dense housing can reduce the carbon emissions from the built environment while also creating more affordable housing options that are walkable, have lower utility costs and are resilient to climate change. Additional benefits will come from enhancing the wetland on the southwest corner. Health The RFP will incorporate a goal of incorporating "healthy home" strategies, for example low VOC paints and flooring. Further, safe and affordable housing is one of the most basic and powerful social determinants of health. Quality housing improves the health of vulnerable populations and is a cornerstone of a strong and healthy community. Stewardship The cost of the parcel for Fire Station 2 and out-lot was $15.3M. Redeveloping the out-lot and bringing this site to full potential will serve to recapture some of those acquisition funds and will place the out-lot on the tax roll. Further, investing in affordable housing ensures responsible management of resources to create sustainable, long-term housing solutions for community stability. Supporting Documentation: 1. Staff Report 2. Staff Presentation Page 3 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Information / Background: When 4401 76th Street West was selected for the new Fire station 2 site in 2022, it was communicated that the site was large enough to accommodate the fire station and provided an opportunity to develop the land to the south of the station referred to as the “out-lot”. The City purchased the property for $15.3 million with the understanding that the site would be subdivided to allow the new fire station to be constructed in phase one and the out-lot would be redeveloped as phase two. The City hired BKV architects and planners to design the new Fire Station 2 and prepare conceptual site plans illustrating different ways to subdivide the site to reflect the goals of the Greater Southdale District Plan. In March 2023, during Fire Station 2 sketch plan review, BKV Architects proposed a residential development on the south side of the parcel, the out-lot, and at that time the City Council decided to focus on the new fire station first. Future planning of the out-lot has been paused since that time. One Council directive was to design and construct the roadway surrounding the new fire station as a public roadway enabling future redevelopment of the out-lot. The site is currently vacant and tax exempt. On May 21, 2024, staff presented to Council possible redevelopment opportunities for the out-lot. Before sharing possible options to Council, staff engaged city departments to determine if there would be a future internal need fulfilled by the out-lot. No needs were identified through this discovery process. Staff moved forward with developing two options for council consideration based on zoning and guided land use: 1. Private development (housing, office, or mixed use) - Private development is consistent with the Comprehensive Plan, however, would require rezoning (currently zoned PID). The site is guided for 20-75 units per acre so a wide variety of housing options are possible. The Edina Housing Foundation expressed interest in purchasing City owned land for affordable housing development. Date: October 16, 2025 To: Chair and HRA Commissioners From: Stephanie Hawkinson, Affordable Housing Development Manager Subject: Proposed Redevelopment of Fire Station 2 Out Lot Staff Recommendation: Provide Feedback for Preparation of a Request for Proposals (RFP) for the out-lot south of Fire Station 2 at 4401 76th Street West for residential use, including affordable housing. Page 4 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 The site allows for up to 12 stories or 144 feet of building height and is one of the few parcels where this height is allowed. Jobs, retail, entertainment, park amenities and transit are all within walking distance which makes this site well suited for housing. The site is located near the I-494 corridor which contains 21% of all metro area jobs. Offices and possibly limited retail uses would also help bring activity to the neighborhood throughout the day and add vibrancy to the district. 2. Public open space –As the area transitions towards a mixed-use district as guided in the Greater Southdale District Plan, a public open space would provide an attractive communal space for people to gather outdoors. This could be stand alone or combined with a residential development. There is potential for wetland enhancement, water quality improvement, and stormwater management. If the out-lot is converted to parkland, this site would be classified as a 3-acre neighborhood park and provide park benefits to those around the area, however only 1.5 acres of this would have active recreational potential due to the wetland and access to trails and pedestrian systems would need to be made. No action was taken at the May 21 meeting with regards to this site. Therefore on August 7, 2024 during a joint City Council work session with the Edina Housing Foundation, the Foundation expressed interest in developing the out-lot into affordable housing. Although the Council indicated a preference for a development that included both ownership townhomes and multifamily rental housing, they agreed to not move forward. The Council had questions regarding the public process for soliciting a buyer plus they did not have a unified vision of the site’s future use. Summary of 4401 76th Street West City Owned Land for Potential Redevelopment Address 4401 76th Street West PID 31-028-24-44-0001 Site size 4.8 acres NOTE: Includes wetland area in southwest corner, leaving approximately 3 acres for redevelopment. Zoning Planned Industrial: NOTE: At 4.8 acres, with a large stormwater retention area, the site is deemed too small for most modern industrial uses. Current Use Vacant; tax exempt Page 5 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Guided Land Use Office Residential; allowing 20 to 75 residential units per acre. NOTE: As a result of COVID, the office market is “soft” and challenging to develop. Conversely, the housing shortage continues to plague the metropolitan area. Community Engagement Community engagement was involved with the establishment of the Greater Southdale District Plan. The plan was adopted by City Council on December 18, 2018, and included as a part of the 2040 Comprehensive Plan. A working group of 18 community members, including two Planning Commission Members, met twice a month for over three years to create a District Plan intended “…to be a tool for the Planning Commission and City Council to use when evaluating Comprehensive Plan amendments and physical changes in the Greater Southdale area.”1 The creation of the Plan involved multiple opportunities for public input: “All their meetings and work sessions were open to the public and included a public comment period. In addition, the Work Group delivered many progress reports to the Planning Commission and City Council. There were also two Open Houses that were attended by dozens and dozens of citizens and business people.”2 2025 HRA Work Sessions on Affordable Housing Three HRA work sessions were held on February 13, March 13, and May 25, 2025, to help set the future direction of affordable housing to satisfy the 2024/2025 budget work plan item “Advance progress to affordable housing goals, including increasing housing options and developing a long- term growth strategy.” Four of the top five priorities included new construction of affordable housing: 1. New construction of townhomes for ownership housing 2. New construction of multi-family apartments 3. New construction of duplexes and triplexes for ownership 4. New construction of single family ownership housing These priorities could be addressed with redevelopment of the out-lot, creating more housing options for people who want to age in community and for people wanting to purchase a home in Edina. 2025 Quality of Life Survey One of the top key findings in the 2025 Quality of Life survey is to identify opportunities for improving housing options, especially for lower-income residents and first-time homebuyers. Alignment with Budget Pillars and Work Plan The development of City owned land aligns with the City’s Budget Pillar “Livable City”, which is defined as: Ensuring a vibrant city requires forward thinking and preparation. Affordable, walkable neighborhoods that foster mobility and interconnectedness improve the quality of life for current and future residents. Reducing the community’s greenhouse gas emissions and responding to climate change through adaptive management of natural assets such as trees, greenspace, and water is critical to the health of future generations. 1 Greater Southdale District Plan, Dec. 18, 2028, pg. viii 2 Page ix. Page 6 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 The work plan primary item for 2025 in this pillar is “Advance progress to affordable housing goals, including increasing housing options and developing long-term growth strategy.” A campus with mid- to high-density housing within walking distance of a commercial center and along a transit corridor addresses actions proposed in the Climate Action Plan, is supported by the U of MN student’s 2024 density report, increases housing options, and brings new housing to the market. Alignment with City Plans The Southdale District Plan calls for splitting large parcels, adding sidewalks and bike paths, and incorporating environmental protects. A housing development at this location accomplishes that goal. In addition, a development that includes both a multifamily affordable rental development, that may also include some “attainable” rent levels, and an ownership townhome development to serve lower- and middle-income families align with multiple additional goals in both the Southdale District Plan and the housing chapter of the Comprehensive Plan. Although it is not feasible that one development can address every idea for implementation of a plan’s goals, a residential development at this location that includes both high density and missing middle housing, as well as affordability, aligns with many. Southdale District Plan • Although there is multiple land use goals, the focus is to integrate uses and allow for greater flexibility: “Land Use Goal #1: Facilitate the evolution of this regional destination into a higher density, sustainable, mixed-use area for “shop, live, work, play, learn, interact” with a distinctive and definable identity as “Edina’s Living Room.””3 This is reinforced in Aspiration #5 calling for a “spectrum of living opportunities integrated through the district where: o Housing orients to a variety of income levels and household types. o Ownership options constitute a significant portion of the living opportunities in the area. o “Missing Middle” living opportunities (duplexes, triplexes, side-by-side or stacked townhouses, rowhouses with multiple units, and small buildings with four to six apartments) allow a broader range of Edina residents, workforce members and others to consider relocating to the District. o Buildings for living strongly orient to the public spaces of each neighborhood within the District.”4 • Land Use Goal #4: Provide for housing choices (housing and unit types, rental and ownership, and costs) to accommodate a wide range of individuals, including youth, singles, couples, families with children, seniors, and people with disabilities. • The plan calls for the incorporation of sustainable development. • The specific site is guided for potential public amenity, which is being accomplished with the new Fire Station 2 being constructed here. 3 Page xiv. 4 Page 12. Page 7 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 • Comprehensive Plan5 • Acknowledge the interrelationship between land use, transportation, and public school enrollments, and support development of housing in areas accessible to a range of transportation options, including bicycle, pedestrian, and transit. • Recognize that successfully reaching affordable housing goals assists the city in achieving related community goals, including: a. Accommodating housing for families with children in Edina schools; b. Maintaining community character and supporting a strong tax base; c. Fostering diversity by addressing disparities; d. Supporting Edina businesses’ ability to remain competitive in regional and global markets and attract quality employees; e. Providing lifecycle housing opportunities to allow residents to remain in the city throughout all life stages f. Addressing climate change through higher density development patterns that help reduce vehicle emissions (see Energy and Environment Chapter) • Housing should support and be supported by surrounding land uses, traffic capacity and patterns, public facilities, and connections to open space and natural resource features • Promote increased housing opportunities and a diversity of housing types by promoting the creative and innovative use of land guided for residential/commercial mixed-use while promoting transit use and other mobility alternatives. • Promote a vision of community that is inclusive of a range of ages, incomes, abilities, and other demographics, and offers a range of housing options. • Promote affordable and workforce housing that includes a range of housing prices and options, based on the principle that those who contribute to the community should have the opportunity to live here. Also, this housing vision strengthens and reinvigorates community institutions and makes the city an attractive destination for young families. • Promote lifecycle housing to support a range of housing options that meet people’s preferences and circumstances in all stages of life. • Within appropriate areas, support flexibility in official controls to allow densities that are compatible with providing affordable housing options for residents. 5 Comprehensive Plan, Housing Chapter, Aug. 18, 2020, pages 4-22 to 4-26. Page 8 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Climate Action Plan • Transportation & Land Use Strategy 1: “Decrease communitywide VMT by 7% by 2030” by providing housing that have more transportation options than just a single-occupancy vehicle. • T&LU Strategy 2: “Double public transit commuter ridership from 3.3% to 6.6% by 2030” since these new households would have easy access to a high-frequency, regionally-connected transit corridor. • T&LU Strategy 3: “Increase average population per developed acre by 4% by 2030” by creating a neighborhood node with gentle density and not merely singe family homes. • Water & Wastewater Strategy 3: “Mitigate and adapt to the projected increased flood hazards and impacts due to climate change” if restoration/enhancement of the on-site wetland is included in the project. • Climate Health & Safety Strategy 2: “Assist the City’s vulnerable populations in preparing for climate change impacts” since they will be neighboring Fire Station 2 and the Public Health staff who office there. • Climate Economy Strategy 1: “Promote economic investment that aligns with the Climate Economy and the goals of the Climate Action Plan” since creating such a walkable, mixed-use district can promote Edina as an environmentally friendly destination and place to live. Staff Recommendation: Housing and Redevelopment Authority consider the out-lot for residential use, including a mix of rental and ownership housing that is both affordable and attainable. Page 9 of 21 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Next Steps: Prepare a request for proposal to solicit a developer. 1. Staff would develop a Request for Proposals that reflects the City’s Budget Values and Pillars, incorporates the visions in City approval plans, addresses the 2025 Quality of Life survey results, and furthers the housing priorities established by the HRA. 2. Staff will present the scope of the RFP for approval. 3. If approved, an RFP would be published with responses due 6 weeks later. 4. The responses would be scored based on alignment to City Plans and Values. 5. Proposals will be summarized to share with the HRA to reduce the number of eligible proposals. 6. The selected applicants would be invited to a future public meeting to make brief presentations. 7. The HRA will make a recommendation to the City Council who has authority for the selection of the Developer Page 10 of 21 Future Use of Fire Station 2 Out-Lot HRA Work Session October 16, 2025 Page 11 of 21 Today’s Request Provide feedback for preparation of a Request for Proposals for the Fire Station 2 “out lot” for future HRA approval. RFP Parameters: •Seek a residential developer •Reflect the City’s Budget Values and Pillars •Align with approved City Plans Page 12 of 21 Background: Fire Station 2 Project Timeline Kick Off •Fall 2022 Values Viewfinder: Staff Workshop •Winter 2022-2023 Values Viewfinder: Public Workshop & Online engagement •January 2023 City Council Concept Review •March 2023 Public Open House & online engagement •March 2023 Preliminary Sketch Plan Review •April 2023 30% Design Updates •May 2023 Planning Review & Public Hearing •Summer 2023 Councl Review & Public Hearing •Summer 2023 Council Awards Construction Contracts •Winter 2023 Construction Starts •Spring 2024 Open House & Station Tours •Fall 2025 Page 13 of 21 Background: Timeline for Potential Use of Out-lot 3/15/2023 Sketch Plan Review with Planning Commission 9/19/2023 City Council Public Hearing for Fire Station 2. Out lot specially not included in request. July 15, 2025 City Council adopted Resolution 2025-52 authorizing the HRA to act on City’s behalf in negotiating the sale and development of this site 5/21/2024 City Council Work Session including re-use of Out-lot 8/7/2024 Joint Work Session with City Council and Edina Housing Foundation Page 14 of 21 Why Residential Development? •Alignment with City Plans •Comprehensive Plan •Southdale District Plan •Climate Action Plan •Addresses Issues Raised in Quality-of-Life Survey •Somewhat to far too little affordable housing – for singles (61%); for families (66%) •The need for more affordable housing was in top four of greatest needs facing the City. •Alignment with Budget Pillars and Work Plan •“Livable City”: Advance process towards affordable housing goals, including increasing housing options and developing a long-term growth strategy. Page 15 of 21 Guiding Framework: Budget Pillars & Values Community Wellbeing and Affordable Housing •Safety •Accessible housing options •Stress reduction •Engaged community •Neighborhood Stability •Social Connectedness Page 16 of 21 Guided Land Use Site Permitted Residential Density is 20-75 units/acre Page 17 of 21 8 Preliminary Concept Presented by BKV on 3/21/23 Shared again 5/21/24 Page 18 of 21 Concept Presented by Edina Housing Foundation/LHB on 8/7/24 Page 19 of 21 Criteria to Include in RFP Equity •Describe how the proposal serves traditionally under-represented populations. •Describe outreach efforts that will be undertaken to the communities that will be served. •Include a range of price points, with emphasis on affordable and attainable (30% to 120% AMI). •Describe how long-term affordability will be maintained, e.g. Through a community land trust, ground lease, limited equity model or similar. Health •Incorporate bike/ped connections, including internal sidewalks. •Describe what “Healthy Homes” concepts will be included. Sustainability •Describe the sustainable construction technologies that will be utilized. •Include a parking plan that minimizes impervious surfaces and leverages the site’s location to transit and walkability. •Include strategy for enhancing the wetland in southwest corner. Stewardship •Explain how proposal has long-term value to the community. •Describe the long-term viability of the development. •Include the post construction value. •Provide an estimated purchase price and explain rationale. Page 20 of 21 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 •January 2026 – Return to HRA with Draft RFP and Proposed Process developed in collaboration with Values Viewfinder Team •February 2026- RFP released •March 2026 – Staff responds to developer questions •April 2024 – Proposals due and evaluated by staff •May/June 2026 – HRA Board reviews proposals and recommends housing partner(s) to City Council •July 2026 – City Council selects developer •Fall 2026 – Sketch Plan Review and zoning input •2027/2028 – Financing Applications to funding partners (may require more than one cycle) •2028 – Site plan approval and financial closing. Proposed Schedule Page 21 of 21