Edina City Council — Transcript
Thursday, August 13, 2026
Edina West Condominiums HRA Loan Program Review
France Avenue TIF 3 District Review
Votes (4)
Potential Spark Grant for General Sports Bar LLC
Dissent: Commissioner Risser
Moved by Commissioner Jackson [0:20:00] · Seconded by Commissioner Pierce [0:20:01]
The discussion centered on approving a $24,000 streamline Spark grant for ADA improvements at the General Sports Bar, located at 5034 France Avenue. The grant is intended to help defer costs for accessibility upgrades to the front entrance patio, a new rear loading dock ramp, and an interior ramp to a new lower-level customer area. The total project budget is $1 million, with eligible ADA work costing $38,000. Commissioner Risser expressed general opposition to Spark grants due to other unfunded public needs but clarified it wasn't an objection to this specific development.
Potential Spark Grant for Wald LLC (Smith Coffee and Cafe)
Dissent: Commissioner Risser
Moved by Commissioner Pierce [0:27:14] · Seconded by Commissioner Jackson [0:27:15]
The board considered another $24,000 streamline Spark grant for Smith Coffee and Cafe, opening in the former Diamo space at 3948 West 50th. The grant would address unforeseen code compliance issues with kitchen ceilings, electrical, and plumbing from previous decades. Owners Alec Schuster and family plan a $400,000 renovation to open a coffee shop with cafe food, breakfast, and lunch offerings, targeting an October opening. Commissioner Risser reiterated her consistent opposition to Spark grants on the grounds of broader public funding priorities, distinct from the project's individual merits.
Approval of Resolution 2026-05: Descertification of 66 West Tax Increment Financing District
Moved by Commissioner Jackson [1:00:23] · Seconded by Commissioner Agnu [1:00:24]
The board discussed a recommendation to descertify the 66 West TIF district, established 10 years prior to fill a $275,000 budget gap for an affordable housing project using funds from the Southdale 2 TIF. Due to changes in statewide tax law (the 4D program for affordable housing), the district's tax generation has significantly decreased, making it unlikely to repay the internal interfund loan by its 2041 expiration. Staff recommended repaying the remaining $169,000 loan balance from the Amenson TIF district, closing 66 West TIF early to avoid ongoing administrative costs and allow property taxes to flow to the general fund. The board sought clarification on the financial mechanisms and confirmed it simplifies operations without harming other districts.
Approval of Resolution 2026-06: Proposed 2027 Budget and Property Tax Levy for the Adina Housing Redevelopment Authority
Moved by Commissioner Jackson [1:03:19] · Seconded by Commissioner Agnu [1:03:20]
Executive Director Neil presented the proposed 2027 budget for the HRA, seeking authorization for a property tax levy to be reviewed by the City Council. The proposal includes a 3% increase, raising the current levy from $267,100 to $275,100, an $8,000 increase. These funds are designated for 'lights on' operating costs, including salaries, benefits, and minor operational expenses.
Notable Quotes (10)
This uh the the business is owned by uh two partners, Marty Collins and Brett Johnson. Uh Brett Johnson is here with us this morning. If there's any questions for for Mr. Johnson, uh if his name sounds familiar, uh it's because he and his family have been running uh Hilltop for many many years and and other restaurants in the Twin Cities.
So, uh, in conclusion, staff certainly recommends that we do, um, approve this grant agreement with with the sport general sports bar LLC is the official name of the of the company.
I have consistently been um voting against these spark grants and it has to do with the whole situation where we are and projects within the city that need to be funded. I'm particularly concerned about Lewis Park and getting a new park building there. So I have consistently been voting against these grants and I just want to say that does not reflect the um feelings that I have about this development.
Uh so this uh proposal is also for a $24,000 streamline grant uh to the owners of Smith Coffee and Cafe to rehab the former Diamo space at 3948 West 50th.
Um, we've been in business in Eden Prairie uh in a historic house uh since 2006 and we're opening our second location at the former Domo space on 50th in France and we're excited to be part of the Adina community.
and the same goes for your project as the previous one. Um I you know it seems like a very good project very thoughtfully planned but my concern is this overarching um use of funds when we have public needs and so that is my the reason why I will be voting against this.
So, at this point, uh, we recommend, um, uh, repaying that interf loan from a different source, from the Amenson TIFF district that was established for the same purpose and just closing down that loan and then descertifying the 66 West TIF district.
So, thank you for that and thank you for the correction. Um, it is obviously complex. Uh, so what I'm understanding then is we're still pulling more in taxes and it's not even necessarily that we don't think well and maybe this is a question if we didn't do this, would this 275 be paid off by the incremental taxes or are we off trend on what we expected? We are with the changes in state law in 4D, we're off trend.
Um I do want to give a shout out to Miss Hawinson um who has talked extensively about what the 4D program is when it was first adopted by the state. She gave us a presentation I believe as part of your annual report every year. So I feel com familiar with it um because I feel like I've been briefed on that and I wanted to um say this is not a surprise.
this uh our our HA levy over the years has been a kind of a lights on operating costoriented levy. Uh we levy somewhere between two and $300,000 and and really just began increasing it incrementally uh every cycle by 3% and that's what we're proposing to do this year.
Ordinances & Resolutions (8)
Program established in 2021, amended in 2025, using TIFF dollars to attract business investment and create jobs, ending at the end of 2026.
Legislation applying to affordable housing, designed to make it more affordable to operate by reducing taxes paid.
Resolution seeking to descertify the 66 West Tax Increment Financing District.
Resolution adopting the proposed 2027 budget for the Edina Housing Redevelopment Authority and establishing the proposed property tax levy.
Tax Increment Financing District from the 1980s with flexible funds for public infrastructure.
TIF district mentioned as a source for interfund loan repayment to Centennial Lakes.
A TIF district, initially funded by mall taxes, with special legislation allowing its use specifically for affordable housing goals in Edina.
An $80.1 million Tax Increment Financing district currently under review and discussion due to proposed changes in development.