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HomeMy WebLinkAboutMinutes HRA.June 11MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JUNE I I, 2026 7:30 A.M. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. and then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, and Pierce Absent: Commissioner Risser III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED — AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving the meeting agenda as presented. Ayes: Agnew, Jackson, Pierce, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VA. EXECUTIVE DIRECTOR'S RESPONSE TO COMMUNITY COMMENTS Executive Director Neal responded that there were no Community Comments at the previous meeting. VI. ADOPTION OF CONSENT AGENDA AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving the consent agenda as presented: VLA, DRAFT MINUTES OF REGULAR MEETING OF MAY 19, 2026 Ayes: Agnew, Jackson, Pierce, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS V/LA. GRANT AGREEMENT WITH MAD HATTER BAKERY AND CAFE AT 7300 METRO BOULEVARD — APPROVED Economic Development Manager Neuendorf said this item pertained to a SPARC streamlined grant for a new business operation. Mr. Neuendorf presented background information on Edina's SPARC program and the HRA's evaluation/compliance procedures to consider streamlined grants. He also provided information about the project location, ownership, and scope of work. He stated that staff recommends the streamlined grant be approved. Page 1 Minutes/HRAJJune I I, 2026 The Board asked questions regarding the timeline for reimbursement and environmental sustainability of the new equipment. Mr. Neuendorf stated that the project would need to be completed by the end of the year in order to qualify for reimbursement from the SPARC program. Ms/ Jules Hill, owner of Mad Hatter Bakery and Cafe, discussed the background of her business and how her passion for baking grew into a seasonal and eventually a brick and mortar operation. The Board inquired about the hours of operation. Ms. Hill noted that Mad Hatter will be open Wed-Sat 8 a.m. - 3 p.m. during the summer months and Mon-Sat 8 a.m. - 3 p.m. in the winter months when more customers are in the office complex. Motion by Commissioner Pierce, seconded by Commissioner Agnew, approving the Grant Agreement with Mad Hatter Cake Company, LLC, and authorizing staff to implement the terms of the Agreement. Ayes: Agnew, Jackson, Pierce, and Hovland Motion carried. VILB. 7235 FRANCE AVENUE - PROJECT UPDATE NORTHWEST PARCEL — PRESENTED Economic Development Manager Neuendorf provided an update on the progress toward redevelopment of this 8-acre site. He noted that after a lengthly delay, Enclave Companies acquired the property earlier in the year and is poised to begin demolition and site preparation this summer with construction of the first phase on the East Parcel to follow. He provided background about the site, including the City's rezoning and site plan approval, consent to establish a new TIF District and enter into TIF Redevelopment Agreements for each of the three phases of the project. Mr. Neuendorf noted that Enclave Companies intends to sell the Northwest Parcel to the Doran Group for construction of an age-restricted apartment building with retail on the first floor. He noted that this new project will still need TIF assistance to be feasible. Additionally, he provided information about the policies and safeguards applied by the HRA when tax incremental financing is used in Edina. He stated these strategies are intended to ensure that the anticipated public benefits are delivered and to avoid any overpayment to the real estate developer. Mr. Neuendorf shared information to introduce the Doran Group, including a brief overview of the new building they propose to construct on the Northwest Parcel. He closed by summarizing the numerous steps the Doran Group is expected to follow as they seek a modification to the 2024 site plan and related revisions to the TIF Redevelopment Agreement. Page 2 Minutes/HRA/June I I, 2026 The Board asked questions regarding the status of the original project proposed on this parcel by Enclave Companies, details about the use of TIF on this site. Mr. Neuendorf responded that the previous proposal on the Northwest Parcel did not secure private financing and Enclave intends to work with Doran Group to develop a slightly different project that is more likely to be financed in the current economic environment. He also noted that details of TIF are dictated by State law, and the TIF collections on this site will start in 2028. He stated that the City has 5 years (beginning in 2026) to issue a financial pledge supported by the TIF District. The Board expressed concerns regarding not having a detail about the proposal and not seeing preliminary site plan review from the Planning Commission before hearing from the real estate developer. Mr. Neuendorf clarified that the purpose this meeting is simply to introduce the Doran Group and confirm that a request for TIF should be anticipated. Site plan reviews are not the purview of the HRA and will occur in the future with review by the Planning Commission and City Council. Evan Doran, CEO of the Doran Group, gave an overview of the company mission, history, and highlighted their leadership team. Mr. Doran provided general details of their upcoming proposal, including elimination of one level of commercial office space, maintaining retail on the first floor along France Avenue and approximately 138 age-restricted apartments. He addressed the rationale in the change of user type and change in size and orientation. He also noted that the lost revenue from the mandatory affordable units and the cost of underground parking are the primary drivers of the financial gap. The Board expressed concerns regarding the importance of constructing outdoor public realm spaces including the promenade that bisects the 8-acre property. They inquired how the Doran Group would accomplish this result when they do not own that portion of the site. The Board also expressed concerns about whether this reconfiguration can still allow for future condominiums on the Southwest Parcel. They stressed the importance of delivering clear and measurable public benefits anytime TIF is used. The Board reiterated that TIF should be used to help deliver public benefits for the community. The Board raised concerns about the sight lines that would result from a reconfiguration of the property boundaries. They also encouraged Doran Group and Enclave Companies to coordinate efforts on all parcels before they make a presentation to the Planning Commission. Finally, the Board expressed disappointment that Enclave Companies was unable to secure private financing for the original plans that had been approved for the property. VIII EXECUTIVE DIRECTOR COMMENTS — Received CODER'S CLUBHOUSE AT 7/0/ FRANCE AVENUE - PROJECT UPDATE Page 3 Scott Neal, Executive Di c or Minutes/HRA/June 11, 2026 V///. B, 7200-7250 FRANCE AVENUE - PROGRESS UPDATE IX. HRA MEMBER COMMENTS — Received X ADJOURNMENT Motion made by Commissioner Agnew, seconded by Commissioner Pierce, to adjourn the meeting at 9:17 a.m. Ayes: Agnew, Jackson, Pierce, and Hovland Motion carried. Respectfully submitted, Page 4