Edina City Council — Transcript

Thursday, May 14, 2026

Potential Spark Funding for Starling Restaurant Parking Expansion

Update on Centennial Lakes Tax Increment Financing (TIF) District Funds

Votes (2)

Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

No official action taken; discussion for guidance only.

Dissent: Commissioner Risser voiced strong opposition. Commissioner Jackson and Commissioner Agnu, while generally supportive, expressed reservations about the project's inefficiencies and the high cost of parking solutions.

The Economic Development Director presented a proposal for HRA guidance on using Spark funds to expand parking at the Starling restaurant, addressing current capacity issues that hinder full restaurant operation and job creation. The project, estimated at $750,000, requires regulatory approvals and a multi-party funding structure including significant HRA contribution. Commissioners discussed the project's economic benefits (job creation, vibrancy), public access to the expanded parking, the tight 2026 deadline for Spark funds, and the opportunity cost of not returning funds to TIF districts or using them for other community needs like park infrastructure. Concerns were also raised about the project's environmental impact (pavement, trees) and the perceived inefficiency of creating more parking rather than encouraging alternative transport, given existing underutilized parking options nearby.

Centennial Lakes Tax Increment Financing (TIF) District Fund Status Update

No official action taken; informational update only.

The Economic Development Director provided an update on the utilization and current status of funds from the Centennial Lakes TIF district, which descertified in 2014. The report detailed how the $11.5 million balance was retained by the city and strategically invested in numerous public improvements and planning studies across Edina's commercial areas over the past 12 years, without impacting the property tax levy. These investments included critical infrastructure (roads, sidewalks, utilities), traffic modeling, and parking facilities. The presentation confirmed that the funds are now fully committed to ongoing projects, but also explained how some expenditures were structured as intrafund loans to replenish the pool for future generations, given the unique flexibility of the original TIF laws.

Notable Quotes (10)

So, this morning, we'd really appreciate some guidance on whether or not the HR would be interested in intervening to support some improvements on the site. Um uh this is the um uh this is kind of part one of this proposal. Um in order to address some of their parking concerns, they would need two things. Some funding support and um uh a site plan amendment.

Bill Nuendorf/Economic Development Director [0:10:49]
Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

I'm super optimistic that if we can get more parking, then we can have more sales, hire more staff, keep more staff. But to your question specifically, um we've tried valet. The residents did not like that. They thought we were too fancy of a restaurant, so we removed the valet portion.

Mr. Frederick/Jester Concepts Owner [0:23:05]
Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

If the project well if the project uh if the funding is approved by the HA um but the contract doesn't finish the owner is at risk right so if they if they don't finish until January 1st we cannot provide funding so that I mean so the the owner is at risk for that.

Bill Nuendorf/Economic Development Director [0:30:17]
Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

I mean, in the bottom, in the end, I would support this um because it is good use of the spark funds. It's creating new jobs. That's why we have it. But um but it just feels so uh like a lot of pressure on you, a lot of inefficiencies in parking.

Commissioner Jackson [0:37:37]
Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

However, it would be in my view uh better stewardship to return the remaining 1 million of spark um back to the county to be redistributed. And I say this because we have a backlog of um repair that we need to do maintenance. We also, and this is a project that I really I know I'm never going to see as a um commissioner, get launched and built, but will maybe get launched a little bit. Maybe in 5 10 years, we'll have an actual park building for Lewis Park.

Commissioner Risser [0:40:48]
Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

And and for me, the the the use of this money uh for this purpose is entirely consistent with what we've done in the past to create opportunities for other businesses. Uh whether it's an elevator for a nightclub, that's just enormously successful as I understand it. Uh and what I expect to have happen over at Cafe Americana.

Chair Hublin [0:43:08]
Discussion on Potential Spark Funding for Starling Restaurant Parking Expansion

So, with this $1 million balance that we had, uh there was a number of items that were clearly eligible and then there's some that just clearly are not. So, we could have used those monies for public improvements, roads, utilities, sewers, sidewalks, lights, those types of things. Uh, we could use that to acquire land, for demolition, for environmental cleanup, uh for affordable housing, for a variety of redevelopment studies to push redevelopment and explore that different options, and also for some staff internal administrative expenses.

Bill Nuendorf/Economic Development Director [0:57:33]
Centennial Lakes Tax Increment Financing (TIF) District Fund Status Update

So we're we're we're looking at the present. We're looking at at opportunities and situations where we can create public improvement but also with an eye to the future so that there's this opportunity for funding again. Um and and and of course with every expenditure we bring um in the future we'll bring it back to the city council at the time we'll have very similar conversations to what we're having this morning. Should we keep it? Should we spend it? Should we give it away?

Bill Nuendorf/Economic Development Director [1:08:44]
Centennial Lakes Tax Increment Financing (TIF) District Fund Status Update

But I'd kind of like to see our spending in tiff and maybe even not even for projects but for public improvements um using the Centennial Lakes but maybe other TIFF funding compared to those sort of external factors because I I would that would help me in the future make decisions about this.

Commissioner Jackson [1:12:44]
Centennial Lakes Tax Increment Financing (TIF) District Fund Status Update

I think it's also nice to look at the level of investment that businesses were willing to make uh because of the public improvements that preceded the the private development that occurred around those public improvements which is you know always a sort of a fundamental strategy that build it and they'll they'll come which we've seen particularly around Centennial Lakes itself I think and in that district.

Chair Hublin [1:15:35]
Centennial Lakes Tax Increment Financing (TIF) District Fund Status Update

Ordinances & Resolutions (5)

Spark programOther

A city program providing funds for improvements that create jobs, with a deadline for project completion and disbursement by end of 2026.

site plan amendmentPermit

Required regulatory approval for the Starling restaurant parking expansion.

Tax Increment Financing (TIF) lawsOther

State laws governing the establishment, use, and termination of TIF districts, which provided flexibility for Centennial Lakes funds.

CIP (Capital Improvement Plan)Plan

City's plan for capital projects, from which certain improvements might be funded but were instead covered by TIF funds.

state statutesOther

Legal framework guiding TIF fund eligibility and investment locations.

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