Edina City Council — Transcript
Wednesday, December 18, 2024
Story
Edina Approves $4.86 Million Loan for France Avenue Apartments
Edina Chamber of Commerce Loan Update
Votes (2)
Redevelopment Agreement Amendment for 7200 France Apartments
Dissent: Commissioner Risser voiced opposition based on the financial impact on the general fund and the use of Spark funds.
Moved by Commissioner Jackson [1:04:54] · Seconded by Commissioner Agnew [1:04:56]
Manager Hackinson presented three hypotheticals regarding tax capacity and TIF duration. Commissioner Risser expressed concern that Spark funds ($1.6M of which could return to the general fund) were being used for luxury-style amenities in market-rate buildings rather than essential services. Chair Hovland and Commissioner Agnew argued that density and permanent affordability justified the investment.
Edina Chamber of Commerce Loan Agreement Update
Dissent: No formal vote; however, Commissioner Risser requested detailed expense and revenue reports before any restructuring is approved.
Moved by None [1:44:00] · Seconded by None [1:44:00]
The Chamber's Innovation Lab program is not meeting revenue projections. The lab has been spun off to a B-Corporation to attract capital, but the Chamber remains liable for the debt. Discussion focused on restructuring the payment schedule and the community value of the business accelerator.
Notable Quotes (5)
The point is that the Tiff District was created to help turn around that phenomenon [of declining tax value].
The spark fund use it or lose it philosophy is something that I want to push back against... a third of this amount is $1.6 million that could go to our general fund.
This is kind of a put your money where your mouth is moment.
The program is not yielding the revenue at either the pace or the level that was first projected.
The lab would remain in Edina until the loan is paid off but... the debt would not follow the lab because that would be detrimental to their financial success.
Ordinances & Resolutions (4)
City policy requiring 10% of units in new developments to be affordable.
2021 State legislation allowing cities to use unallocated TIF pools for local development.
Compliance requirement for the 7200 France forgivable loan.
Regulates the site plan and density for the France Avenue developments.