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HomeMy WebLinkAbout2026-02-05 Special Work Session Meeting Packet City Council Work Session Meeting Agenda February 5, 2026, 8:00 AM Edina City Hall, Mayor's Conference Room, 4801 W. 50th St. 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. Motion to move to closed session as permitted by M.S. 13D.05, Subd. 3 to discuss sale of real estate 3.2. Closed Session: Discussion on Sale of Real Estate at 5146 Eden Avenue 3.3. Motion to Move Back into Open Session 4. Adjournment Page 1 of 52 Item Report February 5, 2026 City Council Item Number: 3.1 Department: Administration Item Activity: Discussion Prepared By: Sharon Allison, City Clerk Item Title: Motion to move to closed session as permitted by M.S. 13D.05, Subd. 3 to discuss sale of real estate Action Requested: Adopt motion as stated. Information/Background: This motion must be adopted to legally close the meeting. Supporting Documentation: None Page 2 of 52 Item Report February 5, 2026 City Council Item Number: 3.2 Department: Community Development Item Activity: Discussion Prepared By: Bill Neuendorf, Economic Dev Mgr Item Title: Closed Session: Discussion on Sale of Real Estate at 5146 Eden Avenue Action Requested: No action require; for discussion purposes only. Information/Background: This item pertains to the potential sale of real estate located at 5146 Eden Avenue. City staff continues to negotiate terms of a sale to the team consisting of Hempel Real Estate, Monarch Development Partners and Jester Concepts. Staff will provide an update on the negotiations. Resources/Financial Impacts: This property has been tax-exempt and owned by the City or HRA since 1962. Sale of this property will result in one-time revenue when the transaction closes. Conversion of the land from a vacant tax- exempt property to an occupied taxable property will increase Edina's tax base for decades. Relationship to City Policies/Plans/Budget Pillars: Selling this land for a private use will increase the tax base, thus strengthening the foundation of the community. The creation of new privately owned development will contribute to a livable city. Edina's Comprehensive Plan and Grandview Development Framework are two of the guiding policy documents applicable to this site. Strong Foundation Livable City Values Impact: Stewardship Selling this land for private development will increase the property tax base, restore the vacant land to a productive use and bring vibrancy to this area. Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). 1. NON-PUBLIC: 5146 Eden Ave - Negotiation Update 2. NON-PUBLIC: 5146 Eden Ave - Summary of Original Proposals 3. Request for Proposals for 5146 Eden Ave (Board Portal) Page 3 of 52 Potential Sale of Land at 5146 Eden Ave Negotiation Update For Discussion Purposes NON-PUBLIC – contains sensitive information pertaining to sale of real estate– Title Page Style with Extra Icon Presentation to Edina City Council Prepared by: Bill Neuendorf February 5, 2026 Insert PNG Logo Sizing Instructions: Shape Format > Crop Dropdown > “Fill”. Make sure to add alt text. Page 4 of 52 1.0 5146 Eden Avenue – Update – NON-PUBLIC real estate information •Recent Activities – Fall 2025 •City Staff & Attorney preparing Sale & Development Agreement •Developer conducting research and site studies •Discussions about delivering real world affordable condominiums •Key Changes (Nov 2025): •Higher demand for elevated luxury condos than townhouses and potentially more commercial space •But more difficult to finance condos •Site plan evolving to address site access, phasing and market conditions •Developer requests elimination of affordable units and payment of Buy-In Fee instead •Key Changes (Dec 2025): •Conceived as phased development •Townhouses are first •Final phases are condos •might change condos to townhouses based on future market conditions •Developer revises purchase offer to increase the resulting Buy-In Fee Page 5 of 52 2.1 5146 Eden Avenue – Original Concept – NON-PUBLIC real estate information Insert PNG Logo Sizing Instructions:Shape Format > Crop Dropdown > “Fill”. Make sure to add alt text. Page 6 of 52 2.2 5146 Eden Avenue – Revised Concept – NON-PUBLIC real estate information Insert PNG Logo Sizing Instructions:Shape Format > Crop Dropdown > “Fill”. Make sure to add alt text. Page 7 of 52 2.3 5146 Eden Avenue – Revised Concept – NON-PUBLIC real estate information Insert PNG Logo Sizing Instructions:Shape Format > Crop Dropdown > “Fill”. Make sure to add alt text. Page 8 of 52 2.4 5146 Eden Avenue – Revised Concept – NON-PUBLIC real estate information Insert PNG Logo Sizing Instructions:Shape Format > Crop Dropdown > “Fill”. Make sure to add alt text. Page 9 of 52 3.1 5146 Eden Ave – Affordable Housing – NON-PUBLIC real estate information •In the RFP and selection process, the HRA identified delivery of affordable units on-site as a desired goal. All proposals indicated they could achieve this goal. •Luxury condo owners expect very high level of amenity which results in high monthly condo/HOA fees (approx. $1+ k per month on top of mortgage) •80% AMI buyers unable to secure private mortgages unless the price or fees are dramatically reduced •Future special assessments for luxury owners may push out affordable owners •Many alternatives considered … none ideal … none acceptable to developer: •Group affordable units in separate building •Heavily reduce or eliminate condo/HOA fees on affordable units •Reduce size, number or purchase price of affordable units •Convert to age-restricted (55+) project •Increase the income of target buyer to 100% AMI •Introduce Land Trust partner Page 10 of 52 3.2 5146 Eden Ave – Affordable Housing – NON-PUBLIC real estate information •Developer requests elimination of 7 affordable units and payment of Buy-In fee instead •Current policy requires $1,225,000 fee ($175k x 7 affordable units) •Developer proposes $2,480,000 fee ($40k x 60 market units) •Increase from previous offer of $25k per unit •Fees paid when building permit issued for each new building (2-3 year period) •Funds deposited into City’s Affordable Housing Trust Fund to be used on future affordable housing project elsewhere in Edina. •This approach is pragmatic but differs significantly from the RFP and may require waiver from Affordable Housing Policy Page 11 of 52 4.0 5146 Eden Ave. – Top 5 Comparison – NON-PUBLIC real estate information Team Name Total Units Affordable Units For Sale Units Commercial Square Feet Proposed Purchase Price Estimated Park Fee ($5k each) Estimated Sewer Water Fee $5,400 each) Estimated Buy-In Fee ($40k each unit) 10-year cumulative City property tax Need for TIF Assistan ce Total Revenue Projected Hemple Monarch ORIGINAL 70 7 7 7,500 $4,000,000 $350,000 $378,000 NA $2,578,90 8 No $7,306,908 Hempel Monarch REVISED LOW 32 0 32 7,500 $4,000,000 $160,000 $172,800 $1,280,000 $1,451,04 3 No $7,063,843 Hempel Monarch REVISED HIGH 60 0 60 7,500 $4,000,000 $300,000 $324,000 $2,400,000 $2,783,52 4 No $9,807,524 Opus 83 17 0 2,000 $2,250,000 $0 $448,200 NA $1,098,25 9 No $3,796,459 Noor Wellington 215 22 21 2,500 $4,500,000 $110,000 $1,161,000 NA $3,065,85 0 Mayb e $8,836,850 Lifestyle Ron Clark 80 44 80 0 $2,083,080 $85,000 $432,000 NA $1,077,75 0 Mayb e $3,677,830 Onward Ebenezer Leap SETT 160 106 60 8,704 $4,000,000 $0 $756,000 NA $952,978 Yes $5,708,978 Min and Max. Guided Density 60 - 300 NA NA NA NA NA NA NA NA NA NA Insert Pie Graph. Make sure to add alt text Page 12 of 52 5.0 5146 Eden Avenue – Update – NON-PUBLIC real estate information •DISCUSSION ITEMS 1)Comfort level with phased development with future phases flexible based on market conditions? 2)Acceptability of housing fee-in-lieu instead of affordable units on site? 3)Willing to consider waiving affordable housing policy to allow buy-in? •NEXT STEP: a)Should purchase agreement be prepared based on these new terms? OR b)Should these terms be rejected and purchase offers from other real estate developers be reconsidered? Page 13 of 52 The CITY ofEDINA 1 5146 Eden Avenue – Summary of Original Offers From 11-12-2025 update NON-PUBLIC – contains sensitive information pertaining to sale of real estate Additional Information Provided for Reference -Evaluation Factors (pg 2-4) -Overview of Top 5 Proposals (pg 5-15) -Overview of Other 6 Proposals (pg 16-28) Page 14 of 52 The CITY ofEDINA 2 5146 Eden Avenue – Evaluation Factors NON-PUBLIC – contains sensitive information pertaining to sale of real estate Budget Pillars Strong Foundation:   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  Budget Values guide decision- making 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. Page 15 of 52 The CITY ofEDINA 3 5146 Eden Avenue – Evaluation Factors NON-PUBLIC – contains sensitive information pertaining to sale of real estate C) Estimated Land Value •Unrestricted one-time revenue •Need for City funding (TIF, etc) D) Closing the Deal •Likelihood that external funding can be secured •Likelihood that land can be sold in timely fashion A) Compatibility with HRA Vision •Grandview 7 Guiding Principles •Comprehensive Plan •Priorities expressed in RFP B) Community Impact •Fiscal impact •Overall impact •Would you be proud to see completed Page 16 of 52 The CITY ofEDINA 4 5146 Eden Avenue – Evaluation Factors,  continued NON-PUBLIC – contains sensitive information pertaining to sale of real estate HRA Board identified multiple priorities to pursue; not all can be achieved simultaneously: q Grandview 7 Guiding Principles q Home ownership opportunities q Affordability and Attainability q Commercial uses to supplement multi- family q Walkable and Connected q Scale and Massing q Outdoor green space q Efficient parking q Highest reasonable land value q Close in a reasonable time-frame What are the HRA’s highest priorities? Which buyers can best deliver an acceptable balance of priorities? Accomplishments Compromises Page 17 of 52 The CITY ofEDINA 5 5146 Eden Avenue – Top 5  Proposals NON-PUBLIC – contains sensitive information pertaining to sale of real estate Developers with the Top 5 Proposals were invited to present to the HRA for additional consideration. Each of these Top 5 Proposals have been summarized on two slides to best compare. The summaries follow: Page 18 of 52 The CITY ofEDINA 6 Proposal “B” For Sale Mixed Use Hempel Monarch Jester Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes Moderate Average Estimated Land Value Time to Close $4,000,000 1-2 years Financing Strategy Traditional debt and equity (without City/HRA funds) anticipated Brief Description: Mix of for-sale townhouses and condominiums focused on market rate owners with 10% affordably priced -“Missing middle” scale (low &  mid-rise) -7,500 Sq Ft restaurant with indoor/outdoor dining and surface parking -Public green space NON-PUBLIC – contains sensitive information pertaining to sale of real estate Revised Nov 5, 2025First Round = 22 points Total Units = 70 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)2 30 32 Condominiums (for sale)5 33 38 Page 19 of 52 The CITY ofEDINA 7 Proposal “B” For Sale Mixed Use Hempel Monarch Jester Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes Moderate Average Estimated Land Value Time to Close $4,000,000 1-2 years Financing Strategy Traditional debt and equity (without City/HRA funds) anticipated Brief Description: Mix of for-sale townhouses and condominiums focused on market rate owners with 10% affordably priced -“Missing middle” scale (low &  mid-rise) -7,500 Sq Ft restaurant with indoor/outdoor dining and surface parking -Public green space NON-PUBLIC – contains sensitive information pertaining to sale of real estate Total Units = 70 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)2 30 32 Condominiums (for sale)5 33 39 First Round = 22 points Page 20 of 52 The CITY ofEDINA 8 Proposal “D” For-Sale Residential – Lifestyle & Ron Clark NON-PUBLIC – contains sensitive information pertaining to sale of real estate Brief Description: Mix of market-rate for-sale townhouses and mixed-income senior housing cooperative -On-site parking -No commercial space -Outdoor green spaces to serve residents -Small outdoor public space with public art sculpture Estimated Land Value Time to Close $2,083,080 to $3,058,080 2-3 years Financing Strategy Traditional capital sources anticipated Total Units = 80 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)16 16 Snr Cooperative (for-sale)8 12 24 12 64 Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes Moderate Average First Round = =9 points Page 21 of 52 The CITY ofEDINA 9 Proposal “D” For-Sale Residential – Lifestyle & Ron Clark NON-PUBLIC – contains sensitive information pertaining to sale of real estate Total Units = 80 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)16 16 Snr Cooperative (for-sale)8 12 24 12 64 Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes Moderate Average Estimated Land Value Time to Close $2,083,080 to $3,058,080 2-3 years Financing Strategy Traditional capital sources anticipated Brief Description: Mix of market-rate for-sale townhouses and mixed-income senior housing cooperative -On-site parking -No commercial space -Outdoor green spaces to serve residents -Small outdoor public space with public art sculpture First Round = 9 points Page 22 of 52 The CITY ofEDINA 10 NON-PUBLIC – contains sensitive information pertaining to sale of real estate Proposal “K” Mixed Uses Rental Opus & ESG Park Fees Water Fees Property Tax Impact General Service Impact No Yes Moderate Minor Total Units = 83 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (rental)18 18 Apartment (rental)5 4 3 3 3 47 65 Estimated Land Value Time to Close $2,250,000 1-2 years Financing Strategy Traditional debt & equity Brief Description: Two phases to include (1) missing middle scale rental units arranged as apartments and townhouses, and (2) separate commercial building with outdoor space -10% affordable + 6% attainable rentals -On-site parking -Future commercial building -Future public outdoor space First Round = 8.5 points Page 23 of 52 The CITY ofEDINA 11 NON-PUBLIC – contains sensitive information pertaining to sale of real estate Proposal “K” Mixed Uses Rental Opus & ESG Estimated Land Value Time to Close $2,250,000 1-2 years Financing Strategy Traditional debt & equity Brief Description: Two phases to include (1) missing middle scale rental units arranged as apartments and townhouses, and (2) separate commercial building with outdoor space -10% affordable + 6% attainable rentals -On-site parking -Future commercial building -Future public outdoor space Park Fees Water Fees Property Tax Impact General Service Impact No Yes Moderate Minor Total Units = 83 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (rental)18 18 Apartment (rental)5 4 3 3 3 47 65 Public Parking First Round = 8.5 points Page 24 of 52 The CITY ofEDINA 12 Proposal “I” Mixed Uses Rental – Noor & Wellington NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $4,500,000 1-2 years Financing Strategy Traditional debt & equity Brief Description: Mix of for-sale and rental townhouses with separate rental apartment building with commercial space on street level -Mixed income: 20% affordable and additional attainable -“missing middle” scale on Eden -2,500 Sq Ft commercial space -On-site parking -Public outdoor green space Park Fees Water Fees Property Tax Impact General Service Impact No Yes High Slightly above Average Total Units = 215 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)7 7 Townhouses (rental)3 11 14 Apartments (rental)39 56 99 194 First Round = 8 points Page 25 of 52 The CITY ofEDINA 13 Proposal “I” Mixed Uses Rental – Noor & Wellington NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $4,500,000 1-2 years Financing Strategy Traditional debt & equity Brief Description: Mix of for-sale and rental townhouses with separate rental apartment building with commercial space on street level -Mixed income: 20% affordable and additional attainable -“missing middle” scale on Eden -2,500 Sq Ft commercial space -On-site parking -Public outdoor green space Park Fees Water Fees Property Tax Impact General Service Impact No Yes High Slightly above Average Total Units = 215 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)7 7 Townhouses (rental)3 11 14 Apartments (rental)39 56 99 194 First Round = 8 points Page 26 of 52 The CITY ofEDINA 14 Proposal “G” Senior Mixed Uses – Onward & Ebenezer NON-PUBLIC – contains sensitive information pertaining to sale of real estate Park Fees Water Fees Property Tax Impact General Service Impact No Yes High Slightly above Average Total Units = 160 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Senior Cooperative (for-sale)6 10 20 34 60 Senior Apartments (rental)15 20 40 25 100 Estimated Land Value Time to Close $3.25M $4.0M 2-3 years Financing Strategy Requires HUD financing for co-op and LIHTC tax credits for apartments; will also require other grants; will require local funding support – either TIF, LAHA, or other City/HRA funds Brief Description: Combination of for-sale senior co-operative and senior rental apartments with stand- alone commercial building and public space -Private amenity areas for resident -Mixed-income – affordable, attainable and  market-rate -8,750 Sq Ft commercial space with indoor/outdoor area and surface parking -Outdoor public green space First Round = 5 points Page 27 of 52 The CITY ofEDINA 15 Proposal “G” Senior Mixed Uses – Onward & Ebenezer NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $3.25M $4.0M 2-3 years Financing Strategy Requires HUD financing for co-op and LIHTC tax credits for apartments; will also require other grants; will require local funding support – either TIF, LAHA, or other City/HRA funds Brief Description: Combination of for-sale senior co-operative and senior rental apartments with stand- alone commercial building and public space -Private amenity areas for resident -Mixed-income – affordable, attainable and  market-rate -8,750 Sq Ft commercial space with indoor/outdoor area and surface parking -Outdoor public green space Park Fees Water Fees Property Tax Impact General Service Impact No Yes High Slightly above Average Total Units = 160 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Senior Cooperative (for-sale)6 10 20 34 60 Senior Apartments (rental)15 20 40 25 100 Seniorapartm e n t s Se n i o r Co- o p e r a t i v e Fut u r e O f f i c e Public Parking First Round = 5 points Page 28 of 52 The CITY ofEDINA 16 5146 Eden Avenue – Other 6  Proposals NON-PUBLIC – contains sensitive information pertaining to sale of real estate Six additional proposals were received but not selected to present for full consideration. These original proposals are also summarized on two slides to best compare. The summaries follow: Page 29 of 52 The CITY ofEDINA 17 Proposal “E” Mixed Uses w/ Parking CSM Corp NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $4,262,869 1-2 years Financing Strategy Traditional financing anticipated Brief Description: Single building including different use types surrounded by surface parking and green space -For-sale townhouses on edges -Rental apartments -8,000 Sq Ft commercial space -Outdoor amenity deck for residents -Two outdoor public green spaces (8 to 9,000 Sq Ft each) Total Units = 149 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)3 10 13 Apartment (rental)14 122 136 Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes High Average First Round = 13 points Page 30 of 52 The CITY ofEDINA 18 Proposal “E” Mixed Uses w/ Parking – CSM  Corp. NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $4,262,869 1-2 years Financing Strategy Traditional financing anticipated Brief Description: Single building including different use types surrounded by surface parking and green space -For-sale townhouses on edges -Rental apartments -8,000 Sq Ft commercial space -Outdoor amenity deck for residents -Two outdoor public green spaces (8 to 9,000 Sq Ft each) Total Units = 149 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)3 10 13 Apartment (rental)14 122 136 Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes High Average commercial Public space Public space For-sale townhouses apartments Ped bridg e First Round = 13 points Page 31 of 52 The CITY ofEDINA 19 NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $1,585,000 1-2 years Financing Strategy Traditional debt & equity; may need TIF or other local support Brief Description: “Missing middle” priced and scaled rental townhouses with  separate stand-alone office and retail building -Attainably-priced rentals -15,000 Sq Ft retail/commercial space -30,000 Sq Ft office space -Targeted to WBE and BIPOC businesses (social equity) -Include new theater as cultural anchor -Public green space on corner -Possible community garden and nature trail Park Fees Water Fees Property Tax Impact General Service Impact No Yes Low Minor Total Units = 59 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (rental)4 15 19 Rowhouses (rental)8 32 40 Townho u s e s t yl e Rowhou s e s t yl e Proposal “J” Mixed Uses Rental – Crowe Co. Public Parki n g First Round = 6.5 points Page 32 of 52 The CITY ofEDINA 20 NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $1,585,000 1-2 years Financing Strategy Traditional debt & equity; may need TIF or other local support Brief Description: “Missing middle” priced and scaled rental townhouses with  separate stand-alone office and retail building -Attainably-priced rentals -15,000 Sq Ft retail/commercial space -30,000 Sq Ft office space -Targeted to WBE and BIPOC businesses (social equity) -Include new theater as cultural anchor -Public green space on corner -Possible community garden and nature trail Park Fees Water Fees Property Tax Impact General Service Impact No Yes Low Minor Proposal “J” Mixed Uses Rental – Crowe Co. Total Units = 59 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (rental)4 15 19 Rowhouses (rental)8 32 40 Office & Retail Building with below- grade parking Arcadia A v e . Public Parking Beyond First Round = 6.5 points Page 33 of 52 The CITY ofEDINA 21 Proposal “C” Rental Mixed Uses – Sherman & Habitat Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes High Average Estimated Land Value Time to Close $3,030,000 1-2 years Financing Strategy Traditional debt and equity for apartments; townhouses require private and public fundraising to reduce cost of individual mortgages; $80 million project with $12 million gap to resolve – will likely need local funds Brief Description: Mix of affordable for-sale townhouses and traditional market/luxury rental apartments with street level commercial space and on- site parking -Outdoor dog run, playground and courtyard to serve residents -Building is close to public bridge/sidewalk -3 to 4,000 Sq Ft commercial space -No outdoor public space NON-PUBLIC – contains sensitive information pertaining to sale of real estate Total Units = 202 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)6 10 16 Apartments (rental)5 181 186 First Round = 2 points Page 34 of 52 The CITY ofEDINA 22 Proposal “C” Rental Mixed Uses – Sherman & Habitat NON-PUBLIC – contains sensitive information pertaining to sale of real estate Brief Description: Mix of affordable for-sale townhouses and traditional market/luxury rental apartments with street level commercial space and on- site parking -Outdoor dog run, playground and courtyard to serve residents -Building is close to public bridge/sidewalk -3 to 4,000 Sq Ft commercial space -No outdoor public space Estimated Land Value Time to Close $3,030,000 1-2 years Financing Strategy Traditional debt and equity for apartments; townhouses require private and public fundraising to reduce cost of individual mortgages; $80 million project with $12 million gap to resolve – will likely need local funds Park Fees Water Fees Property Tax Impact General Service Impact Yes Yes High Average Total Units = 202 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (for-sale)6 10 16 Apartments (rental)5 181 186 First Round = 2 points Page 35 of 52 The CITY ofEDINA 23 Proposal “F” Mixed Uses Cooperative - Gramercy NON-PUBLIC – contains sensitive information pertaining to sale of real estate Park Fees Water Fees Property Tax Impact General Service Impact No Yes Moderate to High Slightly above Average Total Units = 110 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Senior Cooperative (for-sale)14 33 57 6 110 Estimated Land Value Time to Close $2,250,000 1-3 years Financing Strategy HUD financing for co-op building with local funds (TIF, etc) to write down cost of affordability; traditional debt & equity for commercial building Brief Description: Two phase proposal with (1) mixed- income for-sale senior co-operative and (2) stand-alone commercial building, likely a restaurant -Private outdoor amenity deck for residents -5,000 Sq Ft commercial space with indoor/outdoor dining -Outdoor public green space First Round = 1 point Page 36 of 52 The CITY ofEDINA 24 Proposal “F” Mixed Uses Cooperative - Gramercy NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $2,250,000 1-3 years Financing Strategy HUD financing for co-op building with local funds (TIF, etc) to write down cost of affordability; traditional debt & equity for commercial building Brief Description: Two phase proposal with (1) mixed- income for-sale senior co-operative and (2) stand-alone commercial building, likely a restaurant -Private outdoor amenity deck for residents -5,000 Sq Ft commercial space with indoor/outdoor dining -Outdoor public green space Total Units = 110 Affordable Attainable Market Sub-Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Senior Cooperative (for-sale)14 33 57 6 110 Park Fees Water Fees Property Tax Impact General Service Impact No Yes Moderate to High Slightly above Average First Round = 1 point Page 37 of 52 The CITY ofEDINA 25 Proposal “A” Workforce Rental Housing Real Estate Equities Total Units = 176 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 70 AMI 100 AMI 120 AMI >120 AMI All ages / family Apartments (rental)4 160 12 176 Park Fees Water Fees Property Tax Impact General Service Impact No Likely Low-Mod Slightly above Average Estimated Land Value Time to Close $2,640,000 2-3 years Financing Strategy Tax-exempt bonds issued by state, Low Income Housing Tax Credits, LCDA funds from Met. Council, also will need local funding support – either TIF, LAHA, or other City/HRA  funds Brief Description: Affordably priced rental apartments with mostly 2-3 bedroom units targeted to working families. -Outdoor dog run, playground and courtyard to serve residents -Most parking on-site but need 40 stalls in adjacent parking garage -Building is close to public bridge/sidewalk -No commercial space -No public outdoor space NON-PUBLIC – contains sensitive information pertaining to sale of real estateFirst Round = 0 points Page 38 of 52 The CITY ofEDINA 26 Proposal “A” Workforce Rental Housing Real Estate Equities Total Units = 176 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 70 AMI 100 AMI 120 AMI >120 AMI All ages / family Apartments (rental)4 160 12 176 Park Fees Water Fees Property Tax Impact General Service Impact No Likely Low-Mod Slightly above Average Estimated Land Value Time to Close $2,640,000 2-3 years Financing Strategy Tax-exempt bonds issued by state, Low Income Housing Tax Credits, LCDA funds from Met. Council, also will need local funding support – either TIF, LAHA, or other City/HRA  funds Brief Description: Affordably priced rental apartments with mostly 2-3 bedroom units targeted to working families. -Outdoor dog run, playground and courtyard to serve residents -Most parking on-site but need 40 stalls in adjacent parking garage -Building is close to public bridge/sidewalk -No commercial space -No public outdoor space NON-PUBLIC – contains sensitive information pertaining to sale of real estateFirst Round = 0 points Page 39 of 52 The CITY ofEDINA 27 Proposal “H” Mixed Uses Rental – Roers Co. NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $5,430,000 1-2 years Financing Strategy Traditional debt & equity (deeper affordability possible if City funding available) Brief Description: Large rental building arranged as combination of stacked townhouses and one-level flats with commercial space and outdoor public space -Mixed income: 20% affordable and 80% attainable -7,000 Sq Ft commercial space -¾ acre outdoor green space TBD Total Units = 181 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (rental)1 5 6 Apartments (rental)35 140 175 Park Fees Water Fees Property Tax Impact General Service Impact No Yes High Average First Round = 0 points Page 40 of 52 The CITY ofEDINA 28 Proposal “H” Mixed Uses Rental – Roers Co. NON-PUBLIC – contains sensitive information pertaining to sale of real estate Estimated Land Value Time to Close $5,430,000 1-2 years Financing Strategy Traditional debt & equity (deeper affordability possible if City funding available) Brief Description: Large rental building arranged as combination of stacked townhouses and one-level flats with commercial space and outdoor public space -Mixed income: 20% affordable and 80% attainable -7,000 Sq Ft commercial space -¾ acre outdoor green space TBD Total Units = 181 Affordable Attainable Market Total<50 AMI 50 AMI 60 AMI 80 AMI 100 AMI 120 AMI >120 AMI Townhouses (rental)1 5 6 Apartments (rental)35 140 175 Park Fees Water Fees Property Tax Impact General Service Impact No Yes High Average Town h o u s e S t y l e Rental A p a r t m e nt s First Round = 0 points Page 41 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 1 EDINA HOUSING & REDEVELOPMENT AUTHORITY Request for Proposal Redevelopment Opportunity 5146 Eden Ave. Edina, MN 55436 INTRODUCTION The City of Edina and the Edina Housing and Redevelopment Authority (HRA) are seeking a creative and experienced developer(s) to construct new mixed housing/commercial project on a vacant 3-acre site in Edina’s Grandview District. This packet contains information to guide prospective developers as they prepare proposals to purchase and redevelop the site. Teams of developers are also welcome. The Edina HRA is open to reasonable offers that allow the preferred type of project to be built at the maximum land price to the City. The land will be sold in ‘as is’ condition subject to permanent easements for public outdoor areas and covenants for long-term affordability of some of the new housing units. Proposals are due by Monday April 21st, 2025 at 5:00 pm CST. Page 42 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 2 VISIONS FOR A VIBRANT NEIGHBORHOOD Several properties in the Grandview area were formerly used for industrial purposes. Over several decades, the neighborhood transitioned to a mixture of uses including office, retail, housing, institutional and civic. This trend is expected to continue when other sites transition. The City completed a community-based planning process to craft a long-term vision for the Grandview District. The resulting “Grandview Development Framework” established Seven Guiding Principles that are applied to new real estate projects. Key excerpts follow. Grandview Seven Guiding Principles 1) … create a vibrant and connected District that serves as a catalyst for high quality, integrated … development 2) …a neighborhood center with regional connections… 3) Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure … 4) … pursue logical increments of change… to [create] a more vibrant, walkable, functional, attractive, and life-filled place. 5) Organize parking … link community parking to public and private destinations … 6) Improve movement within and access to the District for people of all ages … 7) Create an identity and unique sense of place that incorporates natural spaces … Page 43 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 3 The primary outcomes of the Grandview Development Framework include: • Support the “go to” auto-oriented uses (like grocery store, coffee shop and funeral home) while encouraging more “stay at” pedestrian-oriented uses (like new housing, new restaurants and new public space. • Recognize and respond to the need for a range of housing types. • Emphasize a pedestrian-oriented sense of place that produces an appropriate scale and function with a high degree of walkability. • Support economic growth and community stability by providing accessible and efficient connections between home, school, work, recreation and business destinations. Over the years, the Edina HRA has explored a variety of programs for the site. A new developer is sought for the 5146 site with the intention of breaking ground in 2026. GENERAL SITE INFORMATION • Approximately 3-acre vacant site • Parcel ID #s 28-117-21-31-0014, -0015 and -0016 • Northern edge of the site has been improved with public sidewalk and pedestrian bridge. These improvements will remain and will not be sold. • Previous storage/repair facility on the site was demolished in 2013 • Environmental studies identified remains of hydraulic fluid in limited areas of the southern portion of the site; other contaminants remediated in 2013 • Approx 34 ft elevation change from north to south property boundaries • Surrounded by commercial, multi-family and institutional users • Adjacent to Canadian Pacific Kansas City railroad tracks (aka Dan Patch line) • Adjacent to public parking garage • Easy access to and from Highway 100 • Currently zoned for industrial and guided for mixed uses • Property is currently owned by the Edina Housing & Redevelopment Authority (HRA); title will be transferred to City of Edina before purchase agreement executed with developer • Land sold in ‘as is’ condition. • Supplemental information is available online at www.edinamn.gov. Page 44 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 4 DESIRED TYPE OF REDEVELOPMENT Proposals should be primarily focused on new mixed use or residential development that creates a vibrant destination for residents, workers and guests. Proposals for industrial uses will not be accepted at this location. The proposal must complement the overall Grandview District taking the general vision expressed in the Guiding Principles into consideration. Recognize that the Development Framework establishes only a general vision and is not considered a mandatory blueprint. Ownership units preferred In the past decade, thousands of new rental apartment units have been constructed in Edina. At this location, there is a strong preference for other types of housing, especially ownership units like townhouses, condominiums or cooperatives. Proposals with primarily luxury and market- rate rental housing will be considered but are a low priority at this location. Creative types of housing proposals are preferred and encouraged. Examples include (but are not limited to): missing middle, townhouses, mixed-income, attainable, affordable, co-housing flats, courtyard buildings, passive house, smaller-scale apartments or condominium building(s), car-share program, limited equity models, community land trust model. Modest Living at a Range of Prices In this location, there is a preference for modest living arrangements to keep some of the unit prices low. Preference will be given to proposals that are skewed toward affordability and attainability instead of luxury while still being responsive to the marketplace. Commercial uses A combination of housing and commercial uses is strongly preferred, but not mandatory. Jester Concepts was formerly under contract to develop a new restaurant with indoor and outdoor seating on a portion of the site. Although the contract has expired, Jester still has interest to create a new restaurant in a portion of the site. Proposals that include Jester as a partner will be considered on the same basis as other potential commercial partners. Walkable and Connected The proposed site plan must create a walkable environment that provides convenient access routes for pedestrians and bicyclists to travel to, from and within the site. Scale and Massing While moderate levels of height and density are possible on this site, the City does not strive to maximize the height or density at this location. The public streets closest to the Eden/Arcadia intersection are preferred to be lined with lower height buildings (2-3 stories for Page 45 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 5 example). Additional height is acceptable and preferred in the western and northern portions of the site to avoid overwhelming the public streets. The layout and massing of new buildings must recognize the importance of the new sidewalk and pedestrian bridge at the northern edge of the site. This public route provides convenient access from the parking garage to the site. This public route must remain welcoming to guests and visitors after the site is developed. Outdoor Green Space A portion of the site should be arranged to provide a shared outdoor space for residents, guests and the general public. This could be arranged with a combination of landscaped and hardscaped areas. This outdoor space is anticipated to be privately owned and maintained and subject to a limited-access public use easement. There is no mandatory size or placement of this outdoor space. Additional outdoor spaces exclusively for residents and guests of the new building are also encouraged provided that a portion can be shared with the general public. Parking Private parking should be included on site to meet the market needs of the proposed project. The adjacent Grandview Parking Garage is owned by the City and available as a shared amenity to all surrounding properties. This public facility is frequently underutilized and has some availability during daytime hours (M-F) and is fully available on weekday evenings and weekends. This public garage is available for the limited shared use by guests, workers and customers. A new pedestrian bridge provides access from the site to the parking garage. ZONING AND PLANNING EXPECTATIONS The site is currently zoned Planned Industrial District (PID). In 2022, the site secured preliminary Planned Unit Development (PUD) rezoning that included a senior housing cooperative, full-service restaurant and public park. That PUD was not finalized. None of the pre-established zoning designations in Edina’s Zoning Code are suitable to achieve the development goals envisioned in the Grandview Development Framework. Thus, the pending PUD zoning is anticipated to be modified (or replaced) to reflect the preferred developers proposal. A brief and high-level summary of zoning regulations follows. Developers are strongly encouraged to conduct a full code review as part of their submission. Future Land Use Guidance (Comp Plan pg 3-30) Guided as “Mixed Use Center” - Primary uses: retail, office, service, multi-family residential and institutional - Vertical mixed use is encouraged - Create new pedestrian and streetscape amenities Page 46 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 6 - Encourage structured parking - Buildings may “step down” in height from intersections Residential Density (Comp Plan, pg 3-30) Guided for 20 to 100 dwelling units per acre depending on layout; acceptable density level determined using the PUD rezoning process; higher density levels require greater degrees of affordability Floor to Area Ratio Varies by land use, typically not applicable to multi-family residential Building Height (App. A Height Overlay District) Zoned for 4 stories or 48 ft based on HOD-4 overlay; could be modified using PUD rezoning process; height of adjacent Jerry’s office building typically recognized as acceptable limit for projects in this area Minimum Parking (Sec. 36-1311 to 36- 1326) Varies by land use; minimum requirements can be adjusted if justified by an independent Parking and Traffic Study as part of the PUD rezoning process; there is a public parking garage adjacent to the site Building Lot Coverage (Sec. 36-525) Varies by land use; can be adjusted using the PUD rezoning process provided that alternate provisions for storm water and landscaping are provided Setback Varies by land use and building height; at least 16-22 feet recommended from curb along Eden and Arcadia; sufficient width to accommodate fire department operations on other sides Sidewalks (Sec 36-1274) Complete sidewalks required along Eden and Arcadia; 5 ft minimum sidewalk with 5 ft landscaped boulevard Fire Department Access An alley or other access route is required for Fire Department access to the full site Architectural Design Not regulated; a variety of styles and massing including articulation and step backs is preferred Exterior Materials (Sec 36-618(11)) Not regulated; mixture or natural materials preferred, a variety of materials are acceptable using the PUD rezoning process Affordability At least 10% of all residential units must be priced as affordable to moderate-income households; a greater number of affordable and attainable units is strongly preferred but not mandatory APPLICABLE CODES, STANDARDS AND POLICIES All proposals are expected to comply with applicable codes and policies, including: • MN State Building Code • MN Accessibility Code • Americans with Disabilities Act (ADA) • Public Right-of-Way Accessibility Guidelines (PROWAG) Page 47 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 7 • Edina Zoning Code • Edina Affordable Housing Policy (2022, as revised) • Edina Sustainable Buildings Policy (2022, as revised) • Edina Grandview Development Framework • Edina Comprehensive Plan • Grandview Maintenance Assessment District ANTICIPATED SELECTION PROCESS The Seller anticipates a two-step selection process. Step 1: All proposals that are responsive to this RFP and received prior to the deadline will be evaluated by City staff and forwarded to the HRA Board and/or City Council members for consideration. Proposals will be evaluated on their (1) professional capabilities to complete the project, (2) compatibility with preferred project types and (3) anticipated land purchase price. The City officials will determine which responders, if any, will be invited to interview. Step 2: A limited number of proposals will be invited to refine their proposal and present a more detailed proposal directly to the City officials (in a public meeting) After conclusion of the presentations, the City officials will re-evaluate the finalists as they select the preferred developer. The announcement of the preferred developer will take place at a subsequent public meeting and will include a Letter of Intent or similar document to identify the terms of sale. After the preferred developer is announced, the City Attorney will prepare and present a Contract for Private Development or similar document that identifies the terms of the sale, the responsibilities and expectations of buyer and seller and deadlines to proceed. After execution of the Contract, the preferred developer will proceed with the City’s standard development review process. This process includes a series of public meetings (sketch plan, preliminary and final) with the Planning Commission and City Council to consider rezoning and site plan approvals. SUBMITTAL REQUIREMENTS AND DEADLINE Motivated developers are encouraged to submit a proposal for consideration. Proposals must follow the general format attached. Send proposals to the City of Edina to the attention of: Bill Neuendorf Economic Development Manager BNeuendorf@EdinaMN.gov Proposals must be received no later than Monday April 21st, 2025 at 5:00 pm CST. Page 48 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 8 QUESTIONS Questions can be directed to Bill Neuendorf, Economic Development Manager at BNeuendorf@EdinaMN.gov for written response no later than Monday March 31st, 2025 at 5:00 pm CST. Responses to questions received by the deadline will be posted to the website. GENERAL TERMS This is a request for proposal and in no way obligates the responder to enter into a contract with the City of Edina or the Edina HRA. Nor does this request obligate the City of Edina or the Edina HRA to enter into a contract with any entity that responds, nor does it limit or restrict the City of Edina or the Edina HRA’s right to enter into a contract with any entity that does not respond to this request. In its sole discretion, the City of Edina or the Edina HRA may pursue discussions with one or more entities responding to this request, or none at all. The City of Edina and the Edina HRA further reserves the right, in its sole discretion, to cancel this Request for Proposal at any time for any reason. All costs associated with responding to this request will be solely at the responder’s expense. Page 49 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 9 5146 Eden Avenue PROPOSAL SUMMARY Use this format to submit your proposal. Attach additional pages as appropriate. Brevity is preferred for the first round. Additional detail will be requested from selected finalists. Failure to provide complete information is grounds for the City to reject the proposal. (1) Contact Information Name of Development Company Contact Name Phone Number and Email Website Name of Development Partner, if any Years of relevant development experience Examples of similar completed projects by developer(s) (project name and location) MBE, WBE, SBE,or VBE status of developer(s) and partners, if applicable (2a) Brief Description of Proposed Project Attach a brief description of the proposed project, including unique characteristics or amenities. Two single sided pages maximum. Also attach a conceptual site plan that generally depicts the site layout and massing envisioned for the site. One page minimum; three pages maximum. (2b) Anticipated Commercial Uses included on Site Description of Commercial Use(s) Approx Size (sq ft) A B C Page 50 of 52 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 10 (2c) Anticipated Unit Count (fill in approx. # units of each type) Affordable Attainable Market Rate Total Units < 50% AMI 50% AMI 60% AMI 80% AMI 100% AMI 120% AMI > 120% AMI Townhouse, for-sale Townhouse, rental Cooperative Condominium Rental Apartment, Senior Rental Apartment, All ages Other, A Other, B (3a) Anticipated Land Purchase Price Anticipated Land Price per Unit Anticipated # of Units Sub-Total Townhouse building(s) Multi-family building(s) Other Commercial Use(s) NA Estimated Total Land Purchase Price = (3b) Conditions or Contingencies that impact purchase price or land closing (3c) Describe the type of debt and equity funding anticipated Submitted by (name & date): END Page 51 of 52 Item Report February 5, 2026 City Council Item Number: 3.3 Department: Administration Item Activity: Prepared By: Sharon Allison, City Clerk Item Title: Motion to Move Back into Open Session Action Requested: Adopt the motion as stated. Information/Background: This motion is necessary to exit the closed session. Supporting Documentation: None Page 52 of 52