Edina City Council — Transcript
Saturday, March 15, 2025
France Avenue Pedestrian Crossing and Underpass Concept
Tax Increment Financing (TIF) District for 7235 France Avenue Redevelopment
Public Benefits and Community Impact Analysis
School District and Taxing Entity Impact
Votes (5)
France Avenue Pedestrian Crossing and Underpass Feasibility Update
Dissent: Commissioner Risser expressed concerns about site selection, ADA compliance, and need for broader context views before proceeding.
LHB engineers presented detailed engineering analysis of an underpass design connecting two major developments across France Avenue. The design features two 30-foot bridges with open-air space between them, modeled after York Avenue precedents. Key engineering elements include: (1) raising France Avenue approximately 7 feet to accommodate the underpass; (2) minimal changes to southbound lanes; (3) median widening from 4.5 feet to approximately 9.5 feet; (4) ADA-compliant pathways with grades under 5%; (5) future bike lane accommodation; (6) artistic lighting and ceiling treatments. Estimated cost: $15-20 million, with developer-funded approaches and city-funded roadway/underpass work. Commissioners raised concerns about: graffiti prevention and long-term maintenance; ADA compliance from northern approach; comparison of open-air spacing to Centennial Lakes precedent; funding sources beyond TIF; and site accessibility from regional trail system. Staff committed to providing pedestrian watershed study and comparative bridge spacing analysis at August work session.
Tax Increment Financing District Term Sheet for 7235 France Avenue Redevelopment
Dissent: Commissioner Jackson stated: 'I'm going to vote no' and indicated unwillingness to approve term sheet in current form without substantive revisions. Commissioner Risser expressed concerns about process sequencing, site plan ADA compliance, and need for broader context analysis. Commissioner Pierce raised policy concerns about design-driven TIF necessity and requested reordering of project review sequence.
Staff presented a comprehensive 40-page term sheet recommending establishment of a 25-year TIF district to finance redevelopment of the 8-acre former Macy's Furniture Gallery site. The proposal includes: (1) estimated $22.8 million TIF contribution structured as pay-as-you-go notes upon project completion; (2) approximately $300 million in private development investment; (3) public benefits including 45-46% of site dedicated to public easements, affordable housing (rental and ownership), shared public parking, LEED certification, and workforce development targets; (4) 25% of TIF increment reserved for public infrastructure including France Avenue underpass; (5) separate financing for three parcels (Northwest $56M, East $150M, Southwest $95M). Financial analysis projects current tax base of $12 million increasing to $3.6 million in annual collections, with present value of 25-year increment at approximately $30 million. Commissioners raised substantive concerns: (1) Process sequencing—concerns that design requirements trigger TIF necessity rather than TIF enabling design; (2) Site plan ADA compliance—France Avenue access not shown as ADA-compliant in current plans; (3) Affordable housing mechanisms—lack of detail on long-term affordability enforcement in condominium units; (4) Property assessment accuracy—concern that assessed values ($12M) significantly undervalue market value (estimated $20M+); (5) Parking designation—question whether public parking designation for commercial parking constitutes genuine public benefit; (6) Labor standards—no explicit language regarding prevailing wage or labor compliance; (7) Blighted property designation—concern that upscale Macy's Furniture Gallery does not appear substandard. Staff responses emphasized: (1) term sheet is non-binding letter of intent; (2) final site plan will be incorporated into binding redevelopment agreement; (3) detailed exhibits (A-P) will be developed if term sheet approved; (4) school district protected through statutory exemptions for referendum market value; (5) process intentionally sequenced to allow zoning decisions before TIF commitment.
Approval of Meeting Agenda
Dissent: None
Moved by Commissioner Jackson [Timestamp ~0:05:00] · Seconded by Commissioner U [Timestamp ~0:05:00]
Chair Huband asked if any commissioners wished to modify the agenda. No modifications were proposed.
Approval of Draft Minutes from June 13, 2024 Meeting
Dissent: None
Moved by Commissioner Jackson [Timestamp ~0:10:00] · Seconded by Commissioner Pierce [Timestamp ~0:10:00]
Staff presented draft minutes from the previous regular meeting. No discussion or corrections were noted.
Community Comment Period
Dissent: N/A
Chair Huband opened the meeting for community comment from both in-person and online participants. No members of the public came forward to address the HRA. Staff waited approximately one minute to allow for online participants to call in, but none did.
Notable Quotes (11)
Every line here represents multiple meetings and you know meeting with the developers and their design teams and the county multiple times and talking about every little Nuance every inch we can get uh because the goal is what we're trying to do is create as much space between the bridges as we can get essentially
I always worry about graffiti in spaces like this and so as you design this I hope that you think about how it can be easily cleaned how it can deter graffiti and stuff because I would hate to have something beautiful put in and then just be uh be grimy within a year or two
I would like to see what um an overhead view of Centennial Lakes is between those bridges because that was supposed to be the model and kind of make it feel Airy and open and I don't really have an accurate understanding you know when I see that Gap um how that compares percentage wise in terms of open space
I think one of the most significant things you've done though is to get the county to cooperate at some level here uh and that's that's pretty remarkable because over the years that I've been on the council have the sense that henan County engineering department is mostly interested in throughput
Projects like this are truly transformational to the community the current site uh is valued at about $12 million to the tax assessor it pays a tax bill every year of nearly $350,000 that's a lot of money with this type of transformational change those numbers will increase exponentially um where the future taxes to be paid increase by a factor of 10 to $3.6 million
I'm very concerned about this that what we have put forth as land use um terms seem to automatically trigger Tiff I'm concerned about the parking um I think if you're going to have shops you're going to need parking and to say that that's public is nice but the Public's going to be coming to go to the shops anyways
I don't see anything in here about the language we've talked about with complying with labor standards um I very much want to see that in in any document that we go forward with um the assessment um if we're paying taxes or if if the property's paying taxes based on a $12 million assessment but this property probably sold for close to double that why does our assessment so far below what the market value of this property is
I'm also trying to wrestle with the idea of blighted property the Macy's Furniture Store is an upscale furniture store and I know has repeatedly been referred to as a bunker I think it is a remarkable piece of architecture from that era when Earth reinforcement was something that people did and when you walk into that Macy's Furniture Store it certainly does not feel like like blighted property
I I definitely understand you're saying there's a difference between what a um What expenses a school district may need from a budgetary standpoint and what's available that's kind of how I hear you describing that um and so this project would contribute more to what's potentially available but then the district would look at well how much do we actually need to spend from a budgetary standpoint
What I would say in I appreciate sort of the Rhythm if you will that we've developed over time by asking you to look at a very detailed term sheet we've developed a 40-page document in order to say okay is the general direction going correctly this is not a commitment at this point in time and there are you know several looks at this again before a final decision is made
I do want to underscore that it was me raising a concern about the France Avenue access from the sidewalk not being ADA Compliant and for that to be something that and I did it as a city council person for that to be something that a city council person has to raise at a time when we are under doj investigation for not being ADA Compliant on the Grand View pedestrian bridge is just to me mindboggling
Ordinances & Resolutions (8)
Most recently approved site plan showing mixed-use development layout; noted as placeholder pending final zoning approval and ADA compliance modifications
40-page non-binding letter of intent prepared by Dorsey & Whitney outlining TIF structure, developer obligations, public benefits, and financing mechanisms; includes exhibits A-P to be developed
Binding legal contract to be drafted following term sheet approval; will include final site plan, easement details, and comprehensive financing terms
Resolution requesting city council to schedule public hearing for TIF district establishment; tabled pending August 15 meeting
City council preliminary zoning approval with outstanding conditions; final zoning approval required before TIF district establishment
May 2024 Planning Commission recommendation for site plan approval
Engineering study by LHB examining underpass design, ADA compliance, utilities coordination, and cost estimates ($15-20 million)
Analysis of pedestrian origin points and optimal crossing locations on France Avenue; to be presented at future work session