Edina City Council — Transcript

Thursday, June 11, 2026

Small Business Grant Program (Spark)

Redevelopment of the Former Macy's Furniture Site (7235 France Avenue)

Project Updates for Local Developments

Votes (2)

Mad Hatter Bakery and Cafe Grant Agreement Approval

Approved

Dissent: None

Moved by Commissioner Pierce [00:21:56] · Seconded by Commissioner Agnu [00:21:58]

Economic Development Director Bill Nuendorf presented a request for a Small Spark Streamline Grant of up to $24,000 for Mad Hatter Bakery and Cafe at 7300 Metro Boulevard. The grant is intended to help the small business replace an old, non-code-compliant ventilation system, enabling them to fully open their kitchen operations and create jobs. The owner, Jules Hill, shared her business journey and the challenges of meeting modern codes in an older building. Commissioners discussed the program's 2026 expiration, the reimbursement-after-work model, and the grant's benefit to local businesses.

Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

No official action taken; informational update only.

Dissent: Commissioner Jackson and Commissioner Agnu expressed strong opposition to the proposed changes, particularly concerning the Prominade and public benefits. Chair Hubland expressed disappointment with Enclave Companies.

Bill Nuendorf provided an update on the former Macy's site, detailing Enclave Companies' progress on eastern buildings and their decision to sell the northwest parcel. The Doran Group, introduced as the prospective developer for the northwest parcel, proposed a shift from all-ages apartments to 55+ senior housing, which would entail a larger building footprint and an expansion of retail space. This change would necessitate shifting the Adina Prominade 50 feet south. Commissioners raised significant concerns about the implications of these changes on the approved master plan, particularly the perceived reduction in public benefit and the impact on the adjacent southwest parcel. The discussion also covered the necessity of TIF funding due to increased costs and the existing financial gap, reiterating Adina's strict TIF policies.

Notable Quotes (13)

So with the time limits on this program that uh reimbursement that has to occur before the end of this year. Is that correct?

Commissioner Jackson [00:10:49]
Mad Hatter Bakery and Cafe Grant Agreement Approval

There really is an element of awkwardness to this in the sense that they need the money. We've seen that in other circumstances, but we don't give them the money until after they do the work and pay somebody with money they we don't even know if they have. So, I mean, it's been kind of I I guess everybody's worked through that little uh temporary bridge problem, right?

Chair Hubland [00:11:42]
Mad Hatter Bakery and Cafe Grant Agreement Approval

Mr. Chair observation. It's also an important fraud control uh aspect of of most most uh governmental grant systems do work like that.

Bill Nuendorf [00:12:02]
Mad Hatter Bakery and Cafe Grant Agreement Approval

the cafe space that we're in now does didn't have the hood and the ventilation system for us to be able to do the British breakfast. That was the main um crux of it. So, we needed to have this hood installed.

Jules Hill [00:18:24]
Mad Hatter Bakery and Cafe Grant Agreement Approval

Well, we've had some nice successes with these uh expedited grants up to 24,000. I can't help but think about the uh old crepe crepery on France Avenue that's just seems to have a thriving business and uh helped her with the front door, I think the front windows and the back door and had a grant of a similar nature and so it's nice to be able to help these small businesses prosper in our community and enhance our tax base in the process.

Chair Hubland [00:20:53]
Mad Hatter Bakery and Cafe Grant Agreement Approval

for the Northwest site, the Doran group wants to shift focus a little bit from all ages apartment to 55 plus senior housing. The concern being that on the eastern side of the property, we're already going to see about 450ome new all age apartments. Um the 55 plus category is a little bit different and that's right now that's uh uh it's not overlapping onto what's already happening next door.

Bill Nuendorf [00:27:08]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

right now the property pays about $348,000 each year in taxes. That's a lot. When these four buildings are finished, this site will generate about 3.6 million a year in property taxes. So um again, that that's that's where we where we really focus with these kind of larger scale projects.

Bill Nuendorf [00:30:46]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

the fundamental uh message here is that when when the city of Adina applies tax increment, the financial risk is always structured to rest with the developer, not with the city taxpayer.

Bill Nuendorf [00:33:48]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

It's my understanding that because currently it's 100% commercial that when it becomes at least partially residential that that residential tax will increase the amount of money that goes to the schools regardless of any you know even though the base of what gets paid out to the county, the city and the schools does not change that the mix of that uh because of the shift from commercial to residential means the schools will automatically get more tax revenue. venue from this property by the change of use. Is that correct?

Commissioner Jackson [00:39:56]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

what I'm starting to get concerned about a little bit is we do the east side under the existing plan and now we moved up to the primary commercial corridor and now we've got one proposal for one parcel and no proposal for the other parcel... what goes on that pad you [clears throat] know and then now we've got and I guess we had this before with the master plan uh and and maybe Doran can help us with this when they get up to speak but now along the commercial corridor that has become a real vibrant retail corridor we're going to have the side of an apartment building along France Avenue, not the front

Chair Hubland [00:41:40]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

I'm a little incredulous about this. You can't promise the prominade when you don't control this piece of property. And looking at this picture, um, this [clears throat] plan eviscerates the public purpose that's perceived by the public.

Commissioner Jackson [00:43:10]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

I don't think you should be trying to answer these questions. I think what this is very complicated. the conversation for us, the question was financing and we've kind of already answered that we're okay with TIFF for this uh original project. Um, I would venture to say that that is still the case, but it's very complicated and I I think you need to get in a conference room or at a Starbucks someplace with Enclave and figure out um what project you're going to go through the planning commission with because there's lots of moving pieces to it.

Commissioner Pierce [00:45:34]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

I'm pretty disappointed that um you couldn't hold this whole thing together. Um, we were we were an earnest, willing partner with you on a plan that you came that you said you could deliver. And you're not delivering what you said you'd deliver. And I don't care about market conditions. You should have had your financing lined up to do what you said you were going to do.

Chair Hubland [00:47:04]
Update on Old Macy's Furniture Site (7235 France Avenue) Redevelopment

Ordinances & Resolutions (12)

Small Spark Streamline GrantsOther

City program for small businesses established in 2021, funded by TIF, expiring end of 2026.

Grant AgreementOther

Standardized legal document used for Spark grants, prepared by the city attorney.

TIF districtOther

Tax Increment Financing district established for the former Macy's site (72nd in France number three) to fund redevelopment.

TIF redevelopment agreementsOther

Contracts with developers outlining TIF reimbursement terms, three initially issued for the Macy's site.

Demolition permitsPermit

Permits sought by Enclave Companies to demolish the existing Macy's building.

PUDPlan

Planned Unit Development zoning for the former Macy's site, allowing mixed-use residential, office, and commercial.

state requirements for TIFOther

Specific criteria dictated by Minnesota state statute for the use of Tax Increment Financing.

Adina's TIF policyOther

City policy governing the use of TIF, noted as more restrictive than state law.

site planPlan

Architectural and layout plans for development projects, subject to planning commission and city council review.

TIF noteOther

A financial instrument representing a pledge or IOU for TIF reimbursement after project completion.

forgivable loanOther

Financial assistance, specifically Spark funds, provided for the Setting Apartments project, with forgiveness contingent on project completion.

sketch planPlan

Preliminary site plan for the Hemple/Monarch Group/Jester Group project at Eden and Arcadia.

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