Okay, here we go. Well, good morning everybody. It is August 13, 2026, 7:31 a.m. in the morning. And uh this is the meeting of the Adina Housing Redevelopment Authority on this particular date. And um we are handling these meetings in a hybrid sort of fashion. People can tune in remotely and and watch the meeting, participate at the appropriate times. uh if they have a community comment uh they can do so or if we have a public hearing they can do it at that point in time. We don't have any public hearings this morning. Uh so if somebody has a concern they want to address with the H they're certainly welcome to call in as long as it's not on the agenda this morning uh or scheduled for a future public hearing. Um having provided that information let's uh call the meeting to order and ask our executive director to call the role. >> Commissioner Risser >> here. >> Commissioner Jackson >> here. Commissioner Pierce >> here. >> Commissioner Agnu >> here. >> Chair Hlin >> here. Next is a pledge of >> allegiance. To the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Thanks everybody. Uh we've got a form of meeting agenda that was published both for the benefit of the HA members and the general public. Is there anyone on the uh any commissioner that wants to modify the agenda agenda in any form or fashion or any staff member? Okay. Hearing nothing. Is there a motion to approve the meeting agenda for the August 13 H meeting? >> So move. >> A second. >> Uh Commissioner Pierce moves. Commissioner Agnu seconds the adoption of the meeting agenda for the meeting today. Any further discussion? All those in favor of adopting the meeting agenda is published, say I. >> I. I. >> Post. >> We need to do a roll call. >> We do. We do. Sorry. >> I just caught myself on that, too. Right [clears throat] before. >> Me, too. It's catching all of us. >> You got to get the roll call here. >> We got roll call [laughter] here, too. >> I'll I'll jump in. >> All right. All right. Commissioner Risser. >> Hi. >> Let's make sure we have a roll call on the important agenda. [laughter] >> Commissioner Jackson. >> I. >> Commissioner Pierce. >> I. >> Commissioner Agnu. >> I. >> Chair Hublin. >> I. Meeting agenda is adopted. We've got a document to work from. Next is community comment. Um I don't see anybody in the audience other than a couple of our potential Spark recipients. Uh anybody online? Director Benerok. >> No, we do not have anyone online, but because there is a brief delay with the broadcast, I would recommend we wait for one minute or so before moving on with the agenda. My clock shows that it's 7:34. I'll come back to you at 7:35 or when I have a caller, whichever is first. >> All right. Thank you. >> Incidentally, we've got a hard stop for 8:30 for Commissioner Pierce and a hard stop at 9 for Commissioner Agnu. So, we'll see how we do here. A minute has now expired and we still don't have a caller. So I think it's safe for you to move forward with the agenda. >> All right. Very good. Thank you for that. Uh our practice is that our executive director comments on any committee comments that were made at the prior meeting. Is there anything that you wish to comment on? >> There's nothing to report on comments from the previous meeting. >> All right. Very good. Uh we have only one item on the consent agenda and that's the minutes of the July 16, 2026 meeting of the H. Does anyone has any changes or additions of those minutes? Is there a motion to approve those minutes from July 16, 2026 for the H? >> So moved. A second. >> Commissioner Jackson moves. Commissioner Agnu seconds the adoption of the meeting minutes for the H for July 16, 2026. >> Any further discussion? All right. Roll call, please. >> Commissioner Risser, >> I. >> Commissioner Jackson, >> I. >> Commissioner Pierce, >> I. >> Commissioner Agnu, >> I. >> Chair Hublin, >> I uh the minutes are adopted. >> And then we're into the heart of the meeting, which is the reports and recommendations portion of the agenda. We've got a couple of potential spark grants to talk about this morning and then some other things as well. And uh our economic development director, Bill Nounorf. And Bill, incidentally, did a great job putting a slideshow together, kind of a mini state of the city for me to give to the Creekide condominium owners last night. There were about 60 of them that showed up. It was really a nice conversation. So, I was able to bring him up to speed on a lot of things that were going on in town and including even the anticipation of a senior crowd for the general sports bar. So, um go ahead director whenever you're ready. The first item on the agenda this morning and portion of the agenda is a potential spark grant for the general sports bar LLC at 5034 France Avenue. Yes, good morning. And this is one of two proposals to provide Spark streamline grants to two new restaurants that are opening up at 50th in France. Uh so I have the the owners of each of the restaurants here with us this morning if you have any questions of them, but what I'll do is run through uh briefly uh a little bit of the background of our Spark program and then get in get into the specifics of their project. So, as you recall, uh the Spark program was established back in 2021, uh uh and then amended in 2025. There was, uh statewide legislation approved, uh in that era with the intention of using local uh TIFF dollars to attract new business investment and create jobs. So as we've created these spark line these spark programs that has been our intention to uh uh bring the investment to update and rehab our existing building stock and to um create jobs uh as the net outcome. Uh the program is coming to an end soon. It does terminate at the end of this year. So um uh this might be the last time we talk about Spark. We'll see how that goes. We're getting we're getting close to the to the deadline. Um, when we established the program, we did pull uh about $10 million of TIFF that we had available. And at this point, after running the program for about four years, um, uh, we have about a million dollars left. Uh, uh, as I mentioned at a past meeting, I don't think we we'll be investing all that money. Um, I think we're going to hit our deadline before we run out of funds in this particular program. Um, so we this is the simplest program we created with SparkCC. We call it streamline grant for a reason. It's a smaller grant amount. We try to keep it as simple as we can and we try to problem solve when new businesses run into hurdles. Hurdles that derail the project or intend to throw it off off schedule or kill it. So that's we've done maybe a half dozen of these. We try to make it easy to implement, really focus on remodeling, not on massive new projects, but small business remodels and expansion. Um, the eligible expenses that we that we try to address um are uh handicap accessibility improvements, energy efficiency improvements, and then sometimes there's just other costs that are messing up the budget and threatening to derail it. So, we do have some flexibility in it. the the grant does require of course a matching investment by the owner. Um, and the grant is uh we can issue up to $24,000 in grant amount uh which is 50% of the total project costs or less. In our cases, we've always been like 2% 1% of the costs. Um, and importantly, we want to be really cognizant of that end of the year deadline. So we we require the businesses to be finished no later than November of this year so we can close out the paperwork and make sure everything is buttoned up uh at the end of December. We do issue these grants primarily as reimbursement. Uh it's up to the owner to sign the lease, hire the contractor, get all the work done, get all their inspections, make sure that all the inspectors are are satisfied. Uh and then after they finish they're finished then they show us that they that they paid for the work and then we provide reimbursement. So we want to make sure that everyone is uh getting the work done that's promised and everyone is getting paid for that work that has been finished and then we're happy to provide reimbursement up to the limits that I identified. We follow the same process for this program um uh for the for the last several years. Uh it starts with the review by staff. Uh we hired um the city attorney to prep to prepare a template document trying to keep our legal legal costs in check um where it's a simple template uh that we reuse uh for for each of the projects and then we present that grant agreement to you this morning for your consideration. Uh if you would approve the grant um then it goes back to the owners to get all the work done, hire the people, meet the schedules, work with the budget, work with their own banks to get the money. Um, when they're finished, they'll reach back out to me as staff. I'll reconfirm that they did everything, everything they said they did, make sure all the dollars make sense. Um, we issue a certificate of completion and then we issue the the reimbursement after that. So, it's a sevenstep process. Um, but we try to be transparent about that. So, our first proposal this morning is for the general sports bar. Uh, this is in the location that had been occupied by Salute for so many years. um at it's at 5034 France Avenue. Um the work has been in progress most of the summer. Um uh and it's really starting to come together. We're recommending that we provide a a Spark grant up to $24,000 to help defer some of the costs of access into and within the building. So the the front entrance has a patio that over the last 20ome years has gotten all wobbly and doesn't meet ADA anymore. uh they could probably get away with it, but they're putting all the investment in the building. We're really encouraging them get it up, get it where it needs to be, be ready for another 20 years. Um and then a similar situation at the back. Uh they have a loading dock in the rear uh which consists of a very narrow uh walkway and three irregular steps. Um this is the main entrance for the workers and all the deliveries. Uh so we're uh we worked with the owner and suggested that they replace that with a ramp. Um it was not part of their original scope, but again they're they're refreshing the building for the next 20 years. Let's get it in the shape that it should be. And then a similar situation on the inside. Um they're uh remodeling a portion of the lower level for customers. In the past, that was always storage and back of house area. Uh they've got some recreational spaces that they're building in the lower level. Um but there's there's no ADA ramp to get there. So that's another very expensive in infrastructure investment, but it does open that lower level area to actually be used by customers. So that's basically the the three items that we'll be uh looking forward to to seeing finished as part of the rest of the work. 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. Um so the reason for this grant, uh in summary, uh is the high cost of the construction and the high cost of these ADA improvements. Uh the project is currently underway. They hope to be they hope and expect to be wrapped up this fall and open for business. um uh with with the reopening of the restaurant, we're creating jobs, so we we make sure that we uh satisfy that goal of the uh overall program. And at this point, their budget is about a million dollars to rehab the building and get it up and running. Uh uh the eligible work, the front entrance, the rear entrance, and that interior ramp costs about 38,000. Uh, and we've with this grant, we we can pledge to reimburse them up to 24. Um, so I just want to reinforce that it's a pretty small grant, but without the grant, these little fixes would not happen. It's just out they're uh talking with the owners are already over budget and they wanted they want to do the best job and have it set for the next generation and that's what this grant will will be uh used for. 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. Uh, and with your consent, I would then, uh, implement the terms of the grant over the next several months. So, with that, Mr. Chair, I'll turn it back to you for any questions. >> Thank you, manager Nuendorf. Any questions for manager Newondorf or for Brett Johnson? >> Yes, Commissioner Risser. Um just if we could get the packet um and the staff report fixed because the information background is the text for the next item the coffee and cafe. So as I was reading it I was thinking there's a mother son team doing sports bars and cafes but that's not the case. And so I don't know if there was anything in that text that did not get put in the information background that we should have. Certainly the names of the, you know, developers for the sports bar should be in there instead of the Shusters. So if that could be fixed, that would be great. >> I'm happy to look into that. I I didn't see that same >> I'm looking at it right now. >> Yeah, I noticed it, too. It's so so we never got the information background for this. >> It's accurate on the board portal. >> Okay. >> Yeah. Okay. >> So just maybe get it for the one that the public sees. >> Sure. My apologies. I I not sure what happened there. >> All right. >> Okay. Other questions, comments from folks? All right. I think that presentation was thorough. This is not the first uh dance with the spark process. So, I think our commissioners are pretty comfortable with everything. Um, Mr. Johnson, anything you want to add terms of in terms of need? I think Mr. Nun, >> thank you. Uh, happy to answer any questions about the project, but uh, yeah, we're super excited, hoping to open early September and uh, thanks for all the support thus far. >> Yeah, Commissioner Jackson, go ahead. >> Yes, please. So, um, thank you, Mr. Chair. Tell us what the activities in the basement are going to be. That sounds really fun. >> Yeah, it's super fun. Uh, so Paris Sole actually has their corporate office in our building as well. Um, and they never use this space. It's a pretty small space, maybe only about 15 to 20 people. Um, but like private parties. Um, we're anticipating doing a ton of like banquetss for, you know, sports teams or whatever is involved in the community and, uh, we're actually putting a golf simulator down there with some games. Um, so yeah, we're really excited. >> Terrific. Thank you. >> Yeah, of course. >> Good. Anything else? Okay. >> Oh, Commissioner Risser, go ahead. And 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. And so just in advance, uh I'm thinking about Lewis Park and I understand this was dedicated for this purpose, but um for two years I've tried to get a new building up there and now we've got a little I mean maybe it'll hold together, but it's pretty dicey. And at our last council meeting, we heard from the chief of police that he's going to be asking for new officers. And so, you know, you talk about a, you know, $24,000 grant, it doesn't seem like a much, but we've whittleled down $10 million. And so, um, that's where I'm coming from. So, I just want to say that in advance. >> I understand. Thank you. >> Yep. >> All right. Thank you for that. [clears throat] Um, is there a motion to approve the grant agreement with the General Sports Bar LLC and authorized staff to implement the terms or end of the Spark arrangement? >> So moved. >> Second. >> Commissioner Jackson moves. Commissioner Pierce seconds the uh motion as stated. Anything further? Roll call, please. >> Commissioner Agnu, >> I. >> Commissioner Pierce, >> I. >> Commissioner Jackson, >> I. >> Commissioner Risser, >> nay. >> Chair Hublin, >> I. >> Motion passes. The uh motion is to approve the grant agreement with the General Sports Bar LLC and authorize staff to implement the terms therein. And uh we wish you the best. >> Thank you. >> Keep us surprised of when the grand opening is going to occur, >> of course. >> All right. Thank you. >> Thank you. >> Go ahead, man. With the next one, when you're ready. All right, we'll jump on to the next one, which is a very similar grant agreement uh with Wald LLC, uh more commonly and affectionately known as the Smith Coffee and Cafe. 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. Uh so here's an image of the of the building. Um uh as we might recall, Diamo closed when their lease ended back in March. uh uh uh Alec Schuster and his family jumped on the opportunity and uh saw it as a good opportunity and they signed a lease uh in the spring of this year and for the last several months have been working on how to actually re refresh and and uh uh revive the space uh economically. Um so the uh the windows have been covered with uh with the cardboard type paper for several months. Um there's actually a lot of work going on behind the scenes. Uh some demo and some refreshing. Um but they ran into this similar problem where um uh the restaurant facility was fine when it was built 20 some years ago. Um this grant we're recommending be awarded uh to to them um to help refresh the kitchen space. um the their remodel is not as extensive as General Sports Bar. Um but yet when they walked into the space, what passed code back in the 1980s does not pass code in 2026. Um so uh some of their uh some of their work again it it often sounds simple in nature. So the customer probably won't even notice it, but they won't be allowed to open without it. So uh in that kitchen area uh the existing ceilings may have passed code 30 years ago but it doesn't pass code today. So they have to rip out and rebuild all the ceilings. Uh and then the electrical and plumbing work that is used uh uh in the kitchen to make everything happen. Um uh they essentially have to replace most of it and that was not in their original budget at all. And so with this grant, what we hope to do is allow them to keep on track, get all that behind the scenes work finished, which enables them to get all the nice nice uh work that the customers will notice. Um their total investment in this property is around $400,000 in construction costs. There's still operating costs that will go into the into this. and the eligible scope of that work, the kitchen ceiling and the um plumbing and the electrical in that in that revised kitchen area is almost $30,000. So with this grant, again, similar to the previous one, we would allow reimbursement up to $24,000. That's where we uh created the streamline grant and all the responsibilities lay out just as they did for the previous one. Uh if you uh see fit to approve the grant, then the work goes back into the hands of uh Mr. Schustster and his family to get the contractor to get it scheduled to get it done to get it ordered on site opened and finished. Uh after they do all that, I'll go in and double check that everything is finished and then issue the uh the grant reimbursement afterwards. So with that, I certainly do recommend that the H board approve this streamline grant uh with W LLC so that they can uh keep working on their Smith Coffee and get open this fall. With that, uh, uh, I'm happy to answer any questions. And Alex Schustster, the owner, is here. Happy to answer any questions as well. With that, turn it back to you, Mr. Chair. >> Thank you, manorf. >> U, >> go ahead. [laughter] >> Uh, thanks, Mr. Chair. Go ahead. >> Um, I'm whipsaw there. [laughter] >> I think I was watching a tennis play. >> I don't want to make I don't want to make any assumptions. I'm not sure um about the business itself. So, can you just share with us or maybe just me everyone else may know? >> I was going to bring you up at the end, but this is your chance to talk a little bit about your operation in Eden Prairie and what you're going to be doing here. >> Yeah. 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. Um, our business is a is a coffee shop with more um cafe food and uh breakfast and lunch offerings. >> And then will there there be um co-working spaces like a >> no or whatever. >> Uh one of the amenities or business features that we plan to highlight is a big dining room. There's about 90 chairs inside and at least 24 to 48 on our patio. So be lots of public seating and a great place to have meetings, but it's not like a private coord. >> Oh, sure. Okay. Okay. Thank you. >> What was What are your hours of operation and what types of meals are you serving? You just give us a little bit. >> Our initial plan is to be open from 7:00 a.m. to 4 p.m. every day and serving uh like I said, coffee, drinks, you know, great place to come in, grab a latte, and uh go have a meeting or take it to go. but also uh breakfast menu, breakfast sandwiches, and lunch uh offerings. >> And it must be lunch as well. >> Yep. >> Yeah. >> Anybody else? Okay. Commissioner Jackson, you have >> that was my question. >> Oh, okay. Everybody wanted to hear more about the Smith operation. So, >> yeah, thanks for providing that information. Others have questions. Commissioner Agnu, >> I I do also have a question about the operation. Um, so I know with some of the the sites around town, like coffee shops in general, coming on a power supply for laptops for people that are sitting there working can be limited. Um, will that be kind of one of the draws of this area? Is can someone come and post up with their laptop for a couple of hours and drink lots of coffee? >> Of course. >> Will you have sufficient power so that everyone can plug in their laptops as they need to to work? >> There's numerous outlets available. Yes. >> Okay. Thank you. Yeah. >> Okay. All right. What do you anticipate in terms of an opening date? >> Uh we're trying to we're under construction currently. We're trying to go as fast as we can. Um they've quoted about eight weeks. Uh we're hoping for the October month of October. >> Okay. Sometime in October, right? This fall. Okay. Good. Commissioner Risser, >> 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. >> I understand. Thank you. >> All right. Very good. Uh any other questions, comments from commissioners? Is there a motion to uh approve the grant agreement with W LLC and authorized staff to implement the terms they're in? So move. >> Second. >> Commissioner Pierce moves. Commissioner Jackson seconds the motion as stated. Any further discussion? Roll call, please. >> Sorry. [laughter] >> Commissioner Risser, >> nay. >> Commissioner Jackson. >> I. >> Commissioner Pierce. >> I. >> Commissioner Agnu. >> Hi. >> Chair Hlin. >> I. Motion is approved. The uh grant agreement will be implemented with Wald LLC. Welcome to Adina. Pleased to have you here. You've got a really great reputation. And uh I don't know if we've had another business, retail business that brackets both has facilities in both Eden Prairie and Edana, but so it's maybe maybe a first. So we'll be eager to have you open and get get in there for coffee and breakfast. >> All right. Thanks for being here. All right. Um, next we're going to talk a little bit about uh some work you're doing with Damon Farber and we've got apparently some extra funds available that we can do some monument signage with and eager to visit about that as well. >> Sure. That that's correct. Um, so this next item 7.3 is uh the request to approve a professional service agreement uh with Damon Farber Associates and this work is for landscape and entry sign design. Um I have some well in the packet I have the report uh in the contract and then also a very brief presentation that they had put together. Um this proposal is related to the recently finished uh bridge over Highway 100 at Vernon and 50th the big project that took a little bit longer than we had all hoped for but it it's not it's finished now. Um, for a few decades now in our capital improvement plan, we've had a line item for monument entry signs to Adina. Um, and we've over the years, we've built one of these when a previous opportunity arose. And now that this new bridge is finished, the land the landscaping areas are defined and set, it's a great opportunity to move forward with that goal again. Um uh so the um the contract would be to hire Damon Farber to actually design the sign that we can then go out for for bid and construction. Um and then if we do go out for bid, we would also add uh well their scope does include admin administration during that construction project. So we wrapped it in into one contract. Um total contract amount is just a little bit more than $84,000. Um uh and we would pay for this using uh TIFF funds. That's how we paid for the previous sign. Uh we still do expect some funds to be available in that Centennial Lakes account uh next year in 2027. Um so I'd reported to you earlier earlier this year that we're pretty much capped out on that fund. Um uh some of the dollars went to build the bridge. some of the dollars from that account went to build the Rosland pedestrian bridge. Um, so at the precise moment, we're a little bit low in that account, but we've employed a strategy of doing interfund loans with the intention that as as new private projects are finished, those taxes would then regenerate and repopulate that fund. And we do expect that that to happen in 2027. Um, so with this proposal, I'll show you a few of the ideas they had in mind to put some context to this. So this is the concept sketch uh of of two different versions of the sign. Uh staff is recommending that we go with the version on the left, which is that horizontal uh very simple message. Adina welcomes you. Um, so as you exit highway 100, that would be your first entrance into Adina. Um, >> either the north or the south. >> So th this would be uh as you enter a dinina going southbound on Highway 100. Um, on that area, there's a large open space where there's plenty of room for a horizontal sign. We also did explore a vertically oriented sign that could be located when you exit going northbound. Um, so closer to city hall. The challenge with the northbound facing sign is that there's a giant hill that's very steep. And so the the physical footage to put a sign is much much tighter. And if you're sitting at that intersection in a in a car or truck, um, that little grassy area is obscured by two traffic signals, two light poles. And so I think the if we did put a sign there, it would just be obscured by all the infrastructure. Um uh so at this point in time, uh recognizing budget constraints as well, we're recommending only going with one sign on the southbound uh and uh exit ramp. Uh it would be dual faced. So if you're driving east and west on Vernon or 50th, you would also be able to see it from that direction. Um, so we had we hired Damon Farber earlier this year to explore what these opportunities might look like uh as we saw the project coming together. And then we waited to bring this to you until we knew exactly where those street lights were, exactly where those light poles were. Um, because if we do make the investment, we want it to be nice and really welcome people to Adina in that Adina quality. So, this rendering shows the uh the sign location on the west side of Highway 100. Currently, it is paved uh paved concrete in the foreground and then there'll be whatever mindot plants for grass or things that might grow there. We'd really like to amplify that with uh a pallet of lilac u maybe some pine trees to actually give some greenery to that area rather than just the little scrub grass uh and the sign. And then these are uh other images in the packet, but this is what you might see from a driver experience. The image on the right would be if you're exiting the highway, um uh your your welcome would be on the right hand side. On the left hand side is the highway. So, not a lot to see there. And then if we did do something on the northbound exit, so this is the east side of Highway 100. Uh this is that steep hill that I mentioned. So, similar concept with lilocks and pine trees and a vertically oriented sign, but this is one we recommend holding off on. I just I don't think it's money well spent at this point. Um, I think it is helpful to put some landscaping there. Maybe the lilocks go in or something like that. Um, but the signs are estimated to cost at least $200,000 a piece. So, um, since this one would be obscured by, um, this traffic pole, this giant street light, and then you you see the sign in the middle. I think there's a better way to welcome people to Adina at that intersection at some point in the future. >> I don't even think I don't even think that's a good location to welcome people. That's right. When you're leaving town. >> Yeah. >> That's right. When you're on the entrance ramp into Highway 100 going northbound. I I >> What did you look at all that? to uh as you turn towards city hall. To me, that would be the appropriate place to have a sign welcoming you to Adina if you're coming northbound and getting getting off on the northbound exit. Uh not across the street by the sound wall that leads you onto the highway again. >> Oh, I I don't know. I wouldn't give up on that idea. I also don't know if I like Edina spelled out that way as opposed to on the vertical on some of them. It's on the it's turned a different direction. You know, it's perpendicular to what that shows. I think that's a better look. >> Yeah. I'm not frankly sure how I feel about the logo on there either. >> Staff shares your concern. That's why we're one of the reasons this vertical orientation just >> it's the space we had available. If we move it further to the right, there's a giant retaining wall and then the sidewalk. So, >> I don't even think it should be on that side of the street. Yeah. >> Could we go back to the other one, though? One that's on the horizontal because I got I've got concerns about that one, too. Especially in the winter time. If it's low slung to the ground, it might be half covered with snow. You won't even be able to see the the welcome. So, I don't know. I'd have him think that through a little bit better. It seems to me like it needs a little bit of elevation to keep the snow below it. >> That's a good concern and that's why we want to actually hire them to design it and figure out all those details. Uh we would of course bring it back to you before we go much further. And there are some critical decisions like you like you mentioned um >> uh the the height of it and also the plantings like if the plantings are too aggressive they'll obscure the sign. So having a an expert landscaper like Damon Farber on board to to incorporate those two uh is we think the best path for success. >> You just reminded me of something I've been meaning to talk to somebody about and that is where the the existing signage is that we have over at 66th in York. It's uh there's nothing wrong with the signage, although it's it's hard to see because it's so kind of neutral. But when you make that turn to the if you're going eastbound on 66th and you're turning by the hotel there onto York, that little pork chop piece has tall grass in it. You can't see who's coming now. I see they've chopped it all down. >> Yeah, they they trimmed. >> Get that out of there and put in some lowslung flower. >> It's no longer It's no longer obstructing vision. >> But yeah, I mean it was you you you had to get your nose out into traffic to see if anybody was coming. It was a bad choice of landscape material. >> Commissioner Risser, >> that was actually the point I was going to make. And as somebody who's short and does not drive a big vehicle, I hate going there in the summertime. And I actually laughed when I saw how it was trimmed cuz it was just like >> lpped off. And I kind of thought, did someone was this like somebody in the middle of the night going and lpping it off cuz they were cuz I've actually thought about doing that >> cuz it really is a hazard. >> It is. and you know so >> anyway we digress. Commissioner >> Commissioner you actually go ahead. >> Yes. Thank you Mr. Chair. So two things. One is we have a welcome to a dino sign on Blake Road. Um coming southbound from Hopkins. I'd like this to be in the same design as that. I I think we need to be uniform when we uh have a branding. So you know I don't think it looks like this at all. >> Actually that is the intent. Okay. that that one with the Lannin Stone, the one at 66 in York, and this one all with the same Lannin Stone, the same font. >> The addition here though is that green bar. >> Oh, okay. >> Otherwise, yes, we've been very thoughtful about that. >> Excellent. Thank you. And I know you think about these things. Thank you. Um, and the other thing is, and I'll be brief, the history of Highway 100, it was called the Lilac Way. So, I'm super excited to see the lilacs planted there to to nod to the history of Highway 100. Mr. Pierce. Thanks, Mr. Chair. I um I do like it. Um the points earlier about making sure it's visible year round, I I are spoton. Um and I actually like the green. Um it's kind of a weird thing, but I have I ordered a sweatshirt and there was the option to have green and so I got the green and I like the green. So >> I like it too. >> Yeah. So, I I um look forward to um the next >> How about this renovation logo, the city seal? >> I um Well, so I like the city seal. The challenge I have with most of these signs is the upkeep of them. And so the if we have a seal and it's concrete, right, the materials they start to fade, they peel a little bit. um even if it's like a metal, right, it still ages. Um and so the concrete, you're able to refresh that by just painting it. Um and so the I do like the the emblem, but um it has to be in a way that's sustainable uh so that it always looks good. And I think that's been rare where I've seen that it always looks good. >> Commissioner, >> thank you. How much did we pay to design the other signs like the one that's at 66 in New York? >> Uh that was about 10 years ago. So my memory might be a little bit fuzzy. Um uh >> comparable >> the one at 66. I mean it was 10 years ago. So it was a lot less um >> uh I I I don't recall. I'm guessing design costs back then were less than 40,000. >> Um >> okay. The construction budget for that one I think was 80 or 100. >> This just feels like a lot of money >> to spend on a design. Like I would be like, "Oh, 80,000. Great. We're going to get a new sign and that will be great." But then it's like, "Oh, no, and by the way, you also then have to pay hundreds of thousands of dollars to get the sign." When then I look at what we have at 66th in York and I'm like, "That's fine. Can't we just copy and paste that design for zero dollars? Yeah, part of the challenge with this site, you had alluded to some of it. So, right now, this is a storm water swale. So, it actually goes dives down. So, it's we could hire a sign company to to to to draw the words the dina, right? And that's a simple sign, but this one has a structural foundation. It has we don't want to mess up the storm water system. Um, but we don't want it to flood or to be blocked by snow. And then some of the bigger challenges are if we do light it, there's no electrical source anywhere. So in the contract, we have that as a alternate bid. Um it'd be, you know, budget, no awesome, no no object. It'd be great to light it, but the cost of just bringing power here might just be excessive. So, we did include that in the total $84,000 amount, but as we get into the initial design, we might decide not to spend that amount of money. Um, but yeah, it it it does add up quickly between landscape, structural engineers, civil engineers, electrical engineers. Um, the landscape folks really suggested we do um that we hydrate the area with a lawn sprinkler system. Um, again, the plants would be amazing, but there's no public water source anywhere over there. So, we've already told them to eliminate that. Uh, and instead switch to plantings that are more um, uh, drought tolerant, more native, that type of thing. Uh, but yeah, these sometimes these small projects do add up. >> Director Benerat, you had some comment you wanted to make. >> Well, he ended up answering it. I wanted to make clear it's not just the design for the sign. It's for the site that you're um the plantings and the structure itself. >> Commissioner Russer, >> it's it's just lighting. I mean, couldn't there be solar that is used to collect enough energy to light up the sign at night? I mean, and it could be a small discrete unit. I I would think I don't I don't know. I wouldn't I don't understand why we have to actually run electrical out to it. >> We've tried solar in the past and both our city engineer and our city electrician have urged us to stop experimenting with that. It's failed both times. Um I don't think the technology has increased that much. But we we we had the same thought a few years ago and tried it twice and failed twice. >> Mr. Agno, >> thank you. Um, I love the idea of having a welcoming sign. Uh, especially knowing that we just put all the investment into that site. It also feels like a lot of money right now. Um, and on my way into um, city hall this morning, I'm listening to NPR and I hear all about like everything that's happening in the macro economy and I know that we're all feeling the pressures. This is one of those projects that I personally feel like we could even delay five years and I don't think that it would change really the grand scheme of do people feel welcome in Edina. Um so I person I appreciate the effort that you've put into it. I understand the sentiment. I like the looks of these but right now it just doesn't feel like it's the highest priority thing for me when we have all these other constraints that we're trying to operate within. So, thank you. >> That's a great point. Let's go back to the source of funds and talk about that and why you think this is an opportunity. >> Sure. So, uh back in the back in the 1980s when the city established the Centennial Lakes TIF District, uh the laws in place at that time were much more flexible than they have been for years. Um, so for many years that old account carried a balance and it was a dedicated source of funds that could only be spent on public infrastructure, not on staff, not on fire trucks, not on park park buildings like Lewis Park as an example, but public infrastructure. Um and so when opportunities arose for the past 1015 years when there was something where it was something that would be additive to the community but we did not want to add it to the tax levy and and hike taxes we could go into that savings account so to speak uh uh to use it to advance uh the public causes. Um over the years we've done a lot of amazing projects with that fund and uh uh today there's a very low balance in it but I mentioned that we strategically try to use inner fund loans especially when tax increment is involved. So, uh, for example, our Grand View 2 district has created a lot of incremental, uh, taxes. Um, and there's very little debt obligation in that district. So, we have a half a million dollar inter loan that we think we can repay this year in full. Um, so that's on our work plan to get settled up by the end of 2026. Uh, and so it's that funding source that those dollars would go back into Centennial Lakes. uh they would still be um per state legislation be available for public infrastructure investment. That's how we funded the gap in the bridge financing, the gap in the Rosland bridge financing. And that's what we recommend here. And the reason we bring this this forward today is just after this work, this new bridge has gone on for we've talked about it for years. We finally got it built over two years. Um uh and while it's still kind of fresh, the suggestion was get it get it in place now and be done with it and then move on to other areas of town. Um but it is not a critical thing. We've survived without a nice sign for 50 years. We can probably survive for another 50 years without a nice sign. Um but we did do the math that this is or we looked at the traffic counts. This southbound entrance actually gets a lot more traffic volume than the northbound entrance. And this is one of the most visible, well-used entrance points to Adina. Um whether you're coming here to live, whether you're going to Jerry's, going to the country club, going to 50th in France. So the the visibility is very high, which is why we bring it forward this morning. >> Commissioner Jackson. >> Yes. Thank you, Mr. Chair. So, personally, I would prefer that we wait until the funds have replenished in the Centennial Lakes uh tiff um before we do anything. I don't like the idea of an inter fund loan. Uh I think we just, you know, need to be more straightforward with the way we fund this. So I would delay it for a while. I recommend that. >> Just a comment. It's interesting. This was such a huge project and there was no um money in it for signage. But um yeah, I'm concerned about the cost as well and the location. um you know it's not like you usually see welcome signs like right at the border but anyway um thank you >> Mr. Pierce, any further add-on thoughts? >> Yeah, I I think um multiple things can be true at the same time. Um I um I definitely believe we should have a sign there. Um given the expansiveness of that intersection, um I'm not sure that using the funds to pay for the sign has an impact on the overall economics of individual taxpayers um because it's not uh part of the levy. Um but both things can be true at the same time. Um and so I would support my colleagues if we feel like we should take a pause um and then come back. Uh the only thing I would ask is that we actually do come back. Like I I wouldn't want us if we go if we go five years without a sign, we can go 50. >> [laughter] >> So, um, so if we really, um, think we want to do it, um, we should be thinking about, I would say putting a plan in place to do it next year or the year after at a minimum. >> I think um, I feel agnostic about this in a way. Um, people have asked me over the years, how come you don't have any signage at this location welcoming people to Adina? And um, I thought it was a fair point. You know, most other cities have some kind of sign welcoming you to their community. But, uh, if we wait a little bit to uh, do it, uh, I think that would be fine, too. If we commit ourselves to maybe revisit this six months or a year from now. Um, that's fine. There is something a little bit difficult to absorb about spending 84,000 for design fees regardless of how many people are involved. It just seems like a lot of money to me, too. >> So, it's a timing issue right now. It's a there's a desire, but uh [clears throat] kind of reflection of people's own personal budgets. there's things that you'd like to do for your family or your improving your household, but uh timing is always a critical issue. So, I think you're getting a uniform message that bring it back, but no action today back. What do you think? Six months come back. >> Six months is good. >> Is that okay? >> Okay. >> All right. Sounds good. >> Look at it again in the spring. we'll get past our our budget work and uh our lovey see where we are. All right, I have one one other proposal. Uh this next one is uh seeking approval of resolution 2026-05 and this seeks uh des to to descertify 66 West tax increment financing district. So I'll run through this fast in case there's any questions. I know we're getting close to 8:30. So 66 West is one of about uh 10 or 11 TIFF districts currently in Adina. Um I in the presentation and in your packet I have some background um some context and then and then the proposed solution. Uh but about 10 years ago um there was a budget gap uh in this project, the 66 West apartment buildings. Um uh it was a a wellsupported project at the time. Uh there was a lot of community support to to address um some of the housing needs of lower income young adults that had a lot of challenges and and we're recovering from a lot of challenges. Uh back in that era, the the city did receive special legislation that allowed Southdale 2 monies, so tax money monies collected from the mall to be used for other purposes, specifically affordable housing. And back in that in that era, we had actually asked the legislature for more flexibility. We'd hoped to use it as an infrastructure source, but um the legislators were very clear that they would allow those funds to be used for affordable housing and nothing else. Um and so TIF was used to provide a lastm minute gap in that project. Um uh TIF was one of 10 different funding sources needed to make that project go. Um, and uh, it was a lastm minute thing when it I don't know what went wrong in their budget, but they had a gap of about $275,000. So, relatively small amount. Um, it's not the biggest building. It It's still I mean, it's still six figures. Um, we employ employed the same strategy where we uh had the developer build the project, reach a certain milestone, then we inserted our money to keep the contractor on site and keep them working. Um, and we structured it internally as an inner fund loan with the thought of if that project over time pays enough taxes, let's reimburse ourselves at $275,000. We can then use it for another project some other day. Um, and for several years, uh, the way the taxes were structured, it was repaying the loan. But in the last few years, there were changes in statewide tax law, uh, the 4D program that applies to affordable housing. And the the goal of that state legislation is to make affordable housing more affordable to operate. So, the taxes those buildings pay is a lot less than it used to be. So, staff monitors this a few times a year to keep an eye on on on how tiff is in affecting our budgets. and we've reached the point where we re recommend that it's just time to close this one. Um the way the tax laws are currently structured, uh the repayment of this internal loan will stretch on for decades. Um and one of the downsides of TIF, I guess upside or downside depending on your perspective, there's a lot of oversight. There's a lot of reporting uh internally, externally, which means there's a lot of cost. So, it's a couple thousand dollars every year just to do the reporting on on each of these districts. For a big active district, couple thousand dollars is not a problem. But at this point, for this district, which is one parcel, one building, and it's less than an acre, a couple thousand dollars of expense means that's money we're not going to use to repay the loan. 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. Um, again, it's not going to move the needle a lot as far as taxes. Um uh but the administrative cost at this point we recommend it's just not worth the effort to keep all the the administrative uh steps in place. Uh this is an image of the building. I should have gone through this a minute ago. Um nearly 10 years ago is when it opened. It's hard to believe it's been that long. Um 39 units of affordable housing. Uh it it had formerly been a bank, commercial bank. TCF was was there back in the day. Um this is the location map. It's the one parcel right across from the alter repair center in the medical district or next to the medical district. Um when we established the tiff district it was set to descertify in 2041. Um and as I mentioned with these changes in in tax structure even in 2041 we still would not have that internal loan repaid. And so um that's how we reached the conclusion. Uh we were on the fence last year about this, but now seeing the numbers the same in 2026, it's clear to to staff that it's just not worth the effort. Um so that interfund loan, um there was a resolution passed in 2017 to authorize up to $300,000. Uh ultimately we only needed $275. Uh and with TIFF, um we give the developer what they need, which is usually a lot less than what they ask for. Um uh it's uh the interfund loan collects zero interest. Uh to date the balance remaining is $169,000. So over the years it did perform well for for several years. Um uh the correlary to this is the Amenson tiff district which was created using the same special legislative laws that has a balance of 176,000. So certainly enough to repay the debt. Um so uh the city the HR is empowered to shift uh TIFF funds from one district to the next. So that's why we we do recommend shifting the money from Amenson into into 66. 66 then we pay repays the loan. We stop that paperwork trail, close 66 West, we descertify it 20 years early or so and then move on with with the rest of uh rest of life. So, um, again, a small step, but, um, we don't think it's worth the administrative expense to keep this one going. So, with that, I certainly recommend, uh, that this resolution be approved and that that you authorize us to descertify that TIFF district early. >> Questions for manager Nondorf? Commissioner Gisser. Well, I'm going to do homework on the class 4D implications for other complexes, but as I just did a brief look, um, this could impact other developments that we are pursuing and just the amount of return. And so that really needs to be calculated into, you know, the overall presentation. Um, I think and you don't have to be 100% affordable in order to pursue this. And since we don't calculate because some of our units that are counted as affordable are super small and could be, you know, possibly naturally occurring affordable rentals. And since we're not getting the information about what that figure would be to make it an affordable rental just in the marketplace because of the size. Um, I've been frustrated because I I feel like sometimes we're approving things that, you know, or we're considering things and we don't really fully know what that differential cost is that the tiff is covering. So, this adds another wrinkle to that and I just wanted to comment on that. But this is kind of a big deal. So, I don't have anything specific about this project, but thank you. If I could respond to that, the reason that we brought this forward now is this 4D law did not exist back in 2017. So things change over time, but it has it has been out there for a few years. Um, so any new project, uh, any current project, we do take it into consideration. It is part of the very complex TIFF analysis. Oftentimes I simplify things and say TIFF is complicated. This is one of the many nuances and complexities. my colleague uh Miss Hawinson is our internal expert on 4D so she's well aware of it and then anytime we use um a financial adviser at Ellers or others they're also very familiar with it so it's uh we're not caught by surprise all the other projects we have analyzed for this it's just this one particular project was built well before this law even existed >> but moving forward you know we hear this is going to produce x amount of affordable rentals Okay, but we don't know what the market rate would be for that unit. We don't know, we don't get that information when it comes to the HR, you know, and so we need to know what a market rate cost would be for a unit that we are designated as a designating as affordable and then what the differential is and that's a key piece of information and that needs to start being part of our packet. I do also I know not all of us are in an agreement but I really do think we need to have cost per square footage um not just doors. Thank you >> Mr. Haggno. >> Thank you. Um so I I'll admit I'm a little confused by this one and I just want me to kind of like repeat what I'm hearing and have you fill in some of the gaps. So it sounds like what we did is we took money from the Seltail 2 TIF district and almost created like this separate tiff district that just took money from that to to help fund that. Is that accurate? >> That's exactly correct. >> Okay. And then for when we did this, what was the amount then the total that we did for this 66 west tiff district? How much did we take from that to apply here? >> Sure. Um my recollection is it was a total of 550 and half of it was was um it was structured differently. So, it was not an inner fund loan, but the inner fund loan portion was 275,000. >> Okay. So, we're saying there was 550,000 and halfish of that was an interfund loan. What was the other? >> I recall it just being a grant um from South from Southdale 2 that was non-reayable. It just filled a gap that was delay that was delaying that project. >> Okay. And Okay. So, we basically said here's half to help and then we expect 275 of this to get paid back. Correct. >> Right. One TIF district would pay it back to another TIF district. >> Okay. >> Yes. >> And so, how did we expect that to be paid back? because there like the way that I think of tax increment financing is there's an increment be because of the development but I'm guessing that there were more taxes paid by a bank than there would be what's there now so help me understand like how did we expect to pay this money back >> sure and I I apologize I don't have the old numbers in my head but um but your assumption is in is inaccurate so Um the bank paid much lower taxes. It was a 40 or 50 year old bank building that had not been updated for decades. Uh it was converted to residential which gets it more on our tax roles and then almost doubled in size. So the bank used to have a giant surface parking lot and when they converted it to residential they nearly doubled the size of the building. So the taxes generated by the finished project even an affordable project which always has had a little bit lower little bit of a tax break. Um the taxes received were much higher than the bank had ever paid. >> Okay. >> And so that's how we created the increment and um uh and we knew that it would collect for you know the law says 26 years. So we knew we had lots of term. So, we felt we're in we've got a good chance of repaying it, but it it's never a guarantee um when it's an internal loan, but it was worth the strategic step to see if we could repay it. The reason we want to repay it is that currently the Southtale 2 district is our and Stephanie correct me if I'm wrong, it's our largest most flexible source to fund affordable housing in Adina. it was taxes paid by the mall. Um so generated from primarily the Galleria and um and Southdale Center that can through special legislation be used to support Adina's affordable housing goals. So it's if we want to continue to support affordable housing in Adina, our intention is to return funds back to that district to support another future project. >> Okay. 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. >> Okay. >> So the the tiff district will expire in 2041 and based on our expenses that we incur every year and the reduced taxes that are paid by affordable units these days. Um at the end of the tiff district, we would not have repaid that loan. >> Okay. And so our thought is why go through the administrative hassle every year and all the expense every year if it's never going to be repaid. Um so that was our >> So then given that we're now at less taxes that we're collecting on an annual basis um are we still incrementally more than what we collected when it was a bank? >> Oh yes. >> Okay. >> Yeah. Um and so ultimately what we would be doing here is we would be paying ourselves back >> correct >> into the Southdale 2 tiff district kind of make that hole. We would be descertifying this but as a a city then we we're still collecting those incremental taxes. Um we we collect the taxes. It's less than what we initially had anticipated because of the changes in the state law, but we're still collecting taxes on this site. But all of those taxes that we could now collect on that site if we do this would just go into our general levy um like all other taxes. >> Correct. Correct. So if we descertify it, we'd recommend doing it on December 31st of this year so that in the next tax year it's a clean site. Um uh and they'll still pay taxes, right? You don't get away from paying your taxes. Um, but at that point in if we do this in 2027, there is no more tax increment because the tiff district is closed. So while the project still pays their property taxes, the city will see a little bit more, the schools will see a little bit more, the county will see a little bit more, mosquito district will see a little bit more, all the dozen or so uh taxing agencies. Um, so it's not going to move the needle for any taxing agency. It's one little parcel. Um but at this point in time, it's one little parcel that has a big administrative burden that isn't really worth it. >> Yeah. And so that's kind of how I'm understanding it is we're still going to be collecting the taxes. Now it just more so goes to our our general fund. >> Correct. >> Um and then we're eliminating that burden, the fees that we pay, the administrative component to it. Um, and so this puts us in a better position than if we allowed this to trickle in and eventually not even cover the the total cost because of the decrease in the taxes that were able to collect on that site. >> Exactly correct. >> Okay. Thank you. I understand it a lot more now. >> Commissioner Jackson. >> Yes. Thank you, Mr. Chair. So, I've got three things. Um, one is I want to thank you for identifying an area where we can simplify our operations and save some money. Um I I hope everybody's thinking in those terms. So thank you very much for coming forward with that. >> Sure. >> 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. We've known about this since it was created. Um, I'm not sure that everybody who qualifies for it has taken it up. I I think that was the problem. Yeah, Stephanie is in an agreement over there. Um, excuse me, uh, Manager Hawinson. [laughter] [gasps] Um, and, uh, the other question is, um, so the money is going to be coming from the Ammonson Flats, um, uh, revenue to pay this off, correct? And that was also initially funded through the Southdale to TIFF. Is that correct? >> Correct. >> Okay. So, it's really we've had three pots and we're pushing it into two correct at this point. Okay. So, simplifies, save money, and it's not anything new, complicated, or different from what was already in the structure with Ammonson flats. >> Correct. >> Okay. Terrific. Thank you, >> Mr. Russer. Do you have your hand up again? >> Yeah. I I do want to say I like the idea of doing this and getting more money into the general fund. Um, also with Southdale, too. Um it it is just for affordable housing, but it is absolutely amazing that it can be tiff money used for projects that don't spur development, you know, and I'm thinking of our heroes program. So, it really has decoupled that economic um goal that you usually associate with TIFF. And so, I think, you know, doing this so that we're getting it into the general fund makes a lot of sense. And I do remain very uncomfortable with TIFF financing that is decoupled from development. I I still don't get why we're allowed to do that. But anyway, this seems like a good idea. Thank you. >> So, I just have a a couple of um follow-up questions um along the sequence of member Agnu, I guess. So, we're there's 176,000 roughly in the Almanson Flats TIFF district. >> That's correct. >> And we're going to take 169,000 of that and use that to repay the outstanding loan amount that's owed by um um >> 66 >> by 66 West to the South 2 tiff district. >> Correct. Yes. So the money will flow through to the south elude district tiff district back to that. So >> okay. >> Um and so what are the what are the complications if any of uh the lending? It's not a grant from the Almanson Flats district. It's a loan from the Almanson Flats district. What are the implications of them loaning money to an entity that is now shut down? >> Sure. So the um uh so to be >> they're sitting there with $169,000 note. >> Sure. So >> it's not never going to be repaid to them. >> To be clear, so the this interfund loan is strictly between the TIFF districts. So the buildings themselves, they're privately owned. They have nothing to do with this. So there's no obligation by either the owners of 66 or the Amenson Flats building. Yeah, I understand that part of it, but there's still there's still an outstanding unpaid obligation. >> Yeah. So, when there could be So, uh when we created Amenson, the special law that allowed that to happen or actually required that we do that, um uh uh that Amenson district was set up to be a continually operating source, small source of funding for future affordable housing. And that's why we keep that one district open. Um it's a much larger building than Amenson Flats. So the tax generation there I would say is worth the effort. Uh there's still some administrative cost of it but the taxes generated the building is almost three times the size. So there's real money being generated for affordable housing there. We would just encourage in this recommendation, we would have those dollars pay off the affordable housing loan just to zero out that account. But yeah, Amenson there there'd be no expectation to repay Amenson. We would just um the TIFF law calls it pooling. We are able to pool from the Amenson district into the 66 West district and then from 66 West into Southdale. So, it's a one of those complex steps to do something very simple, but Almanson would have um it would not be damaged, but the existing budget balance would be virtually eliminated for this year and then it would start to replenish next year. We don't want to go negative in that district. That's also why we waited this year. Um going negative in a tiff district is something we always avoid. Um uh but with this step, I think there'd be $7,000 or so left in balance and then their annual tax payments are in the 30 to 40,000 range. So come next spring, they'll have a a very robust amount again. >> So it's the pooling uh law that allows us to do this. >> Correct. >> Because from a technical standpoint, Robinson's getting stiffed. They're they're loaning money to they're they're giving money to 66 West to pay off that loan. Technically owed that money back, but they're not getting it back because of the pooling law. >> Yeah. And when it's pooling, that means there's no expectation of repayment. Um, and with Amenson, the Amenson district that that was a it was an odd one, but it's the way that they wrote the law. There's no obligations in that Amenson district. So, um there's no obligation to the to the developer or the neighbors or the residents or the public debt. There's no obligation. So, uh it was uh created strictly to be one small way to amass a a small annual budget for affordable housing. So, again, we're not damaging anything or constraining ourselves, but we're just trying to clean up the the 66 West situation. On the plus side, I suppose you because of the pooling regulations or law, uh, you're moving $169,000 back into the Southdale 2 tiff district, >> correct? >> Which gives us the ability to do a lot of different things, >> right? Right. >> Not constrained like the other districts. >> Okay. >> Correct. >> Other questions? All right. Um, so the motion would be to approve resolution 2026-05. A lot of good questions here. Incidentally, uh, approve resolution 20265 approving the descertification of the 66 West Texas Increment Financing District. There's a is there a motion to that effect? >> U, so on my portal it says 20264. Is that a different number? Um, is that the what's the correct number? >> Oh, yeah. And the >> So, let me pull up the document here. Uh the correct number should be 2026-05. >> Okay. So maybe it's just the um the way it's written in here. Yeah, on the document itself it's 05. Okay, thank you. >> Yeah, it was just the title. Just the title said 04, but the document on our board portal. Okay, good. So I've got the right number. So I'll make that motion. >> I'll second. >> Commissioner Jackson moves. Commissioner Agnu seconds the adoption of uh resolution 20250 which would approve the descertification of the 66 West Tax Increment Financing District. >> Yep. 20265. >> 20265. >> Just confirming. Thank you. >> Um any further discussion? Roll call, please. >> Commissioner Risser, >> I. >> Commissioner Jackson, >> I. >> Commissioner Pierce. >> Commissioner Agnu, >> I. >> Chair Hublin, >> I. Motion approved. Resolution 2025 20265 is adopted. The uh 66 West Tax and Government Financing District will be descertified. >> All right. You want to talk budget real quick? >> I'll do that one. >> Major Neil. >> Yeah. Thank you, your honor. and members of the HRA. Um that it's it's important and required actually by law for the HR if they are proposing a property tax levy in an upcoming budget to have that property tax levy reviewed and authorized by the city council for inclusion into the uh the levy um the levy calculations etc. 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. So, increasing our current levy of two uh $267,100 to $275,100 is an $8,000 increase. And it is uh a 3% increase in that levy from 26 to 27. And as I mentioned, we use that money to cover salaries, benefits, employee salaries, benefits, and other kind of minor operating costs. Be happy to answer any questions. questions for executive director on this issue. Got so we got about an $8,000 increase proposed. Okay. >> If approved by the council, the next step would be to bring this to uh the September 15th action where the council will set the preliminary tax levy for 2027. >> Okay. All right. Is uh does anybody have any questions? Is there a motion to approve resolution 202606 adopting the proposed 2027 budget for the Adana Housing Redevelopment Authority and establishing the proposed property tax levy payable in 2027 for that entity? >> So moved. >> Mr. Jackson moves. Commissioner Agnu seconds the motion to approve resolution 20260 uh in its stated form. Any further discussion? >> Roll call, please. >> Commissioner Agno. I. Commissioner Pierce, >> Commissioner Jackson, >> I. >> Commissioner Risser, >> I. >> Chair Hublin, >> I. >> Motion's approved. Resolution 2026 is adopted. >> Um, we got just a couple of minutes here. Um, anybody have anything for the good of the order, for the benefit of the other commissioners? All right. Commissioner Agnu, I wonder if you want to do you want to give a brief update on our meeting yesterday with uh some of the board members and former board member of uh Adina West. >> Absolutely. Um and then you can fill in the blanks of what I might miss. Um so we got a really great tour of the um the improvements that they were able to make. it was the HIA um I forget how we call it um the loan the support that we gave them um to make some continued investments within their condo property knowing that there are are often burdens constraints in how they're able to operate that on their own. Um so it was really great to see some of those improvements. Um but they also had some good good feedback. I they were the first ones that we had done. Um so I know that it was there were some probably growing pains in there. Um, but I think one of the biggest things that I I think will be valuable for us to dig into if we do a future one is thinking about um kind of how we we encourage them or require them maybe to find their own bank and to find the loan because I I know that there were like a lot of fees. I think it ended up being a $5 million um package that we had done, but they were only really able to spend I think 3.2 million of that. Um and so it really constrained then the projects that they were able to do. Um I think it's a it's a great tool and if we were to do subsequent ones I think we could take some of those learnings. Um, but I think overall, um, they they were they were I don't even know if I would say happy, but they were appreciative, um, of the opportunity to to use this. Um, but maybe, you know, in hindsight, wouldn't have done it in the exact same way if if they were doing it again. Um, but I think overall, uh, it was really just great to see the improvements. I like that it's an option that we have and I think that when the next project comes up, which hopefully it does, we can just think really critically about what is that total amount that we're offering. Um what are some of those specifics of where the money comes from, what are the fees associated with it, and how can we bring that visibility upfront I think will be really valuable. Um any other big callouts that you think, Mayor, >> you know, I was thinking about it last night. I went over to Creekide Condominiums. uh to do a presentation to them on what was happening in the city and um they've completely redone their facility on their own by realizing about five years ago that they were under capitalized and things were starting to slip and so they've they had the financial resources to do something about it and I think that was one of the challenges at United West is not everybody had the financial resources to be able to do the things they needed to do. They talked about having to replace a boiler and some boilers and they had borrowed money to do that. um this process I think they thought they they sensed that it was a bit adversarial >> and and and that um maybe it was because of the maiden voyage on this thing as Commissioner Haggnu points out. Um, but the idea that they had to go find a place to borrow the money to do the work, then get reimbursed put them in a position where they now owe 5 million because of what we gave them. But because of the cost they incurred from the bank and the interest they've paid the bank, they only able to use about 3.2 to 3.5 million of the five million. The rest of it's gone to the bank. >> Wow. So they're they're encouraging us to be thinking about uh should they should there be a system to be able to draw some way from the HIA account that gets established instead of having to go borrow the money from the bank and get repaid which seems on the face of it to make sense because that's what we do at TIFF for example. But in this situation where you've lost over maybe a third of your spending power because of bank fees and other costs, it's it's it was really it's it was pretty upsetting to them. And they've still got work they didn't get done because the deadline was artificially imposed. They had to get certain work done within a certain period of time. They still have work that wasn't done because they couldn't meet the deadline. So, uh now they've got a they've still got work to do over there. You can see they've got a lot of work to do. All caused by their uh failure to take care of their property from the get-go. And people not recognizing early on we need to have sufficient capital uh improvement plan resources here, a scing fund to be able to take care of the things that we need to take care of. Some of the things that we saw were visible like they put new siding on. Uh they had old wood siding and they replaced it with Hardy board. Looks great. Uh and some people now are redoing their porches and but some of the work was uh infrastructure related uh like they had sewer capacity issues and the sewers were underneath the cement in the parking garages >> and they found sink holes and other things there as they went about doing this infrastructure work. So, but uh you know the you got an outdoor pool, an indoor pool, they got pickle ball, they got some nice amenities, but all of that is expensive to maintain and uh and their their grounds are beautifully maintained, but they they've got a ways to go yet because some of the stuff looks pretty tired. >> Commissioner. >> Yes. Thank you, Mr. Chair. So, when I was a lobbyist, um, one of the things that we talked about is North Dakota has a housing bank and if there was a state housing bank, that kind of loan could be available, you know, at a much lower interest rate and not have to go through the fees of a private bank. So, when we're putting our legislative action together, um I thought it was a brilliant idea to and North Dakota is the only state I think in the union who still has one of these, but I'd love to see something in our legislative um packet. >> Great idea. >> Um looking at whether that's feasible and and asking the legislature to revisit that idea because >> we as a city don't have to bear the risk. someone should bear the risk, but it shouldn't be in the private market because as you said, it's a third of their money just gone into private banking fees, right? >> So, um and and interest. So, um I'd put that out there in the idea pool and I would um I would re I would support that if that were in our legislative agenda. >> Yeah, I think it's a it's a great idea. Um something to something to look at and probably mimic because I mean we we got put at risk. we had to go borrow the money and then charge them for that money and then that was affected our overall credit rating too as I recall or potentially you know it's it's a factor in there so it'd be good if there was a state mechanism for it okay good well Commissioner Agn's got a hard stop here in four minutes so anybody have anything else commissioner >> um I'm a little confused on the agenda we were going to hear from manager Neil and the update on the um France tiff 3 site And I do want to articulate that I'm very concerned about just sort of moving forward and not rethinking this entire tiff district because this is an $80.1 million tiff district. Um 20 million was earmarked for the tunnel under France. Now we've got the entire west side being completely rethought. And I do really think that when we talk about tiff districts, >> the east side, >> east side, >> the east, >> west side, >> west side, >> west side, >> west side's >> west side is where the buildings are going up. >> West side, >> west side of the east side, >> right? Okay. >> On the France facing side of the east parcel, >> on the France facing side, we've got that particular parcel. and the France facing side. I mean, we're talking about this is on the east side. Okay. And so, of that development, I thought that was the west side because they're looking to sell that. And so, that is what I said. All right. Um, and so that entire west side is being reconsidered. And I do think when we talk about tiff districts, the hole is bigger than the parts. And when this was negotiated, uh, you know, the exciting things were along France Avenue and now, you know, all of that is sort of just up in the air and what we're looking at appears to be something that is going to be purely residential or pretty close to purely residential. All of us got an email that I thought was very good from Edina resident Theres Riley Holden about issues concerning um putting senior housing. Okay. And yes, it was going to be a senior condo, but um as we go through development, and we've just been talking about development, um we I think really need to slow things down a little bit more. And I think we end up pushing projects that aren't particularly viable. And with this particular site, and I have brought this up in the past, that 2005 study about the South Dale area, transportation, land use, all of that, um offered a real cautionary um piece of advice and noting that, you know, you can't control development, but really not encouraging super densification. And what we're doing with our tiff is exactly that. So now as you drive down France, it's fascinating. You didn't used to be able to see straight through to the proomenade. Now you can do that. That burm that had been there is gone. Um trees are gone. And it it just we have given up so much. And I I've kind of taken to thinking about this enclave development. Also, um, in the email we got, the Enclave development in Richfield across from the co-op, which I see regularly because I go to that co-op. Uh, if you have not looked at that, really look at that. And then also, as you go down France Avenue, you've got the Enclave development that is just north of 50th in France on the Minneapolis side that did not receive any TIFF money. And it'll be interesting to see what our TIFF financed multif family enclave development looks like in comparison to the Minneapolis one, in comparison to the Richfield one. But I I do have a lot of concerns about how we are moving forward. And so I, you know, in my comments, I guess I was anticipating manager Neil going before uh but that is all I have. Thank you, >> Commissioner. >> So two things I'd like to say in response to that. First of all, we have not approved any use uh changes at this point. So I to anticipate that it's going to be housing or not be housing I think is um putting the cart before the horse. Secondly, we did not push this forward. The state law says if somebody comes for a zoning change, if we don't respond within a certain period of time, they get it automatically. So, we responded to an offer or to a proposal that was given to us and um and we responded in a timely manner. We did not push this forward on any way, shape or form. We did not rush it by state law. We cannot slow this down. That's my understanding and and maybe uh uh executive director Neil can clarify that. But we don't set the timeline. The the law does and it was not rushed on our part. The only other cautionary note I would offer here is that um to equate to what happened at 49th in France on the Enclave project of what we've been doing or thinking about doing down at the Macy's home store site is apples and oranges. I mean we we only use tiff if there's a public benefit. That's our clear guiding principle. And so there could have just been a development down there that was just cookie [clears throat] cutter standard development, but because we wanted to see certain things down there like free underground parking and and the prominade itself, uh, you know, connected with that big walkway, uh, public art, all these other features that we thought were public amenities that improved the the project, uh, and and made it more consistent with what we like to see in our town in terms of development. Those are the elements that created the need for tiff down there and where that's all going to shake out. Manager Undorf, I'm assuming that's that story is yet to be told and we we don't know what that's going to be yet, but it's certainly not going to include a tunnel and we'll have to wait and see what uh and some of these public amenities uh are are still the same as they were before. Uh not the tunnel, but these other things still exist as things that we wanted to see happen down there that we thought were an appropriate use for TIFF when we approved that project. And so how that gets affected by the new modified project if it even goes forward to your point gets a gets affected in terms of the tiff implications that story is yet to be told. So >> yeah commissioner >> I do think it's appropriate to reook at that tiff agreement given all the changes and that's my point. >> Yeah I think I assume that's what we'll be doing. What I did not see that in the report that was in the packet and I I do think we need to we need to look at that and that doesn't just mean negotiating with the continued 80.1 million um with whoever ends up developing the west side. Thank you. >> Major Neil, anything? >> I don't have anything to add. >> Okay. Nothing further. Okay. >> All right. Uh, is there a moment? No, I guess we get to just adjourn. We don't even have to satisfy member Aign she's had to leave, too. All right. H meeting of uh Thursday, August 13th, 2026 for the city of Vina stands adjourned.