Thursday, August 14th, 2025, 7:32 a.m. And this is the meeting of the housing redevelop redevelopment authority uh for the city of Edina. And we've got an interesting agenda today. And um as you all may know, we've been continuing uh COVID postcoavid doing these meetings in a hybrid fashion. People can watch online and call in if there are opportunities. There's always the opportunity during community comment to call in. uh and sometimes we have public hearings. None of that activity today. Um and then uh we'll also have folks in the audience that may wish to address the uh H matters of concern to them. So having called uh provided that information, let me call the meeting to order and ask Scott Neil, our executive director, to call the role. >> Thank you, Mr. Chair. Commissioner Risser >> here. >> Commissioner Jackson >> here. >> Commissioner Pierce >> here. Commissioner Agnu >> here. >> Chair Hland >> here. also here. Um, next is the pledge of allegiance. >> I pledge algiance 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 everyone. And we've got a meeting agenda. Is there anyone on the HR that wishes to modify the meeting agenda? Any staff? Okay. Is there a mo a motion to approve the meeting agenda as published? >> So moved. >> Second. >> Mr. Jackson moves Commissioner Pierce the adoption of the meeting agenda is published. Any further discussion? All those in favor of adoption of the meeting agenda is published say I. >> I. I. Opposed. Carried. >> The meeting agenda is published as adopted. Uh the next is community comment. Is there anyone in the audience who wishes to address the HR and a matter of concern to them? Seeing no one coming forward and hearing nothing, uh, let's check online. >> I don't have anyone on the line just yet, but because there is a brief delay in the broadcast, I'd recommend we wait about a minute before moving on with the agenda. That gives people the time to call in if they'd like. My clock shows that it's 7:35. I'll come back to you at 7:36 or when I have a caller, whichever is first. >> Thank you. It is now 7:36 and I still don't have a caller, so I think it's safe for you to move forward with the agenda. >> All right. Very good. Our executive director usually responds to community comments made in the prior meeting. Anything to report there? >> No, nothing to report today. >> All right. Thank you. Next up is the consent agenda. There's a few items on the consent agenda, including several sets of minutes uh and a resolution authorizing the transfer property uh at the old public works site to the city from the HA. Uh is there anyone who wishes to remove anything from the H agenda? Okay. Is there a motion to adopt the items on the or excuse me on the consent agenda? Is there anyone who wishes to um move the adoption of the items on the consent agenda in a single motion? So moved. >> Second. >> Commissioner Jackson moves. Commissioner Pierce seconds the adoption of the items on the consent agenda. Uh anything further on that? Any further discussion? All those in favor of adopt them adoption of the items on the consent agenda in a single motion say I. >> I. >> I. Opposed carried. >> Uh those items are approved and adopted. And now we're going to move to items that are off the consent agenda. Uh we have some reports and recommendations and some actions to take this morning and our economic development manager Bill Nuendorf uh will be leading the way on these presentations. It's a continuing discussion with respect to the former public works site uh on Eden Avenue and u u he's been meeting with our um selected development team and I think we're going to report on that and one of the members of that development team is here as well. Manager Newendorf. >> Yes. Good morning. Thank you. Uh I have several items here for you this morning, but we'll start uh with a with a pretty significant one. Um uh for many years, we've been looking at redeveloping that public work site um that's been vacant over on Eden Avenue. Um, and throughout this year, as you're well aware, we've had several conversations uh with different development groups um who are interested in that site. Um, today we we'd like to uh take the step of actually identifying and recommending the development team that would take the next uh that that would be given the opportunity to purchase and redevelop that site. Um, so this is a two-step process. uh in your consent agenda, you just um transferred the ownership of the of the land from the HR to the city. So, at next week's city council meeting, they will accept that transfer. Um uh and then it'll be the city that formally enters into a contract with the development team for this site. But the H as an H, you've been talking about uh the opportunities, the goals, uh and the types of teams that could accomplish those goals. And so we be we'll be looking for your recommendation to identify that team and that's what we're prepared to do this morning. So we're well aware of the threeacre site uh just west of Highway 100 and behind Jerry's Foods. Earlier this year, we received proposals from 11 different development teams. um uh and we invited five of those to come in at our previous HR meeting in July and make their formal proposal and their formal presentations. Now, this group of 11 had a wide variety of different types of projects. They were all um responsive to what we'd asked for in the request for for proposals earlier this spring, but they all offered a very different solution to some of the challenges and goals that you had had identified. So the types of projects included senior cooperatives, town homes, row houses, condominiums, senior apartments, kind of general purpose all age apartments, professional office building, um commercial space, uh and the price points were also varied. Um uh everything from mixed income housing to luxury, traditional market rate, affordably priced, attainably priced, kind of that middle pricing. Um, so we had quite a variety to choose from, which which is no surprise. This site has been a good location for for for quite some time. The the offers of land purchase price ranged from uh over a million dollars to nearly 6 million. And the type of density that was uh uh proposed on the site also had quite a range from about 20 units an acre to just slightly over 70 units an acre. all of which are well within the limits of our comprehensive plan. So, as a as a a body discussing the potential sale of real estate, we've often talked about the outcomes on the property. Um, so while the purchase price is a factor, it's not the only factor. It's also the type of project and the type of community goals that could be achieved. Several years ago, the city identified uh pillars and values to to to be used as we make major decisions about expenditures or in this case revenues coming in. Um and so we strive to to take each of those uh values and fundamental pillars into consideration as we weigh the various uh options available to us. So some of the most important um goals were uh compatibility with the vision for the site. Um the vision that was expressed by the HR um and that vision was informed by our comprehensive plan. The Grand View development framework. There's been lots of planning and discussion on the site. We wanted to be respectful of that recognizing that some of the initial plans started over 10 years ago and some of the things that were on our wish list back in 2011 just are not not possible in 2025. Uh we looked at the estimated land value that that purchase price was important to us. Um, we looked at the community impact, uh, the fiscal impact, the overall contribution that a new project on the site could make to the broader community and to that immediate neighborhood. We also looked at the ability of the developers to close the deal. Um, uh, it's really important that we get beyond a contract, but actually get to a sale and then new construction. Um, so closing the deal was also a very important factor. So throughout your conversations um we took a lot of we took all of all of those into consideration and early on back in I think January we had an initial conversation about balance right there's there's no perfect project where we knew that we wouldn't be able to secure every single goal in one project but it's a balance of what we can actually accomplish and then what are some of those areas that we're willing to compromise on. Um and so uh uh as we've gone through those conversations uh at our last uh close session meeting there was a lot of uh conversation about th those last five presenters. Uh and when we left that meeting, you provided direction for me to to do additional research and have start having some conversations with a team comprised of Hemple Real Estate, Monarch Development Partners, Jester Concepts, and ROS Advisors. I've met with them uh twice in the last couple of weeks to get the conversation starting uh started. Uh we find that they still are very interested in the site. They're ready, willing, and able to start moving forward. uh the concept that they have in mind um is missing middle scale forale housing. So, town homes, condominiums, and commercial space all arranged in a manner that creates a walkable neighborhood with some outdoor public spaces where the general public can enjoy those areas. But f fundamentally putting the property back on the tax roles and uh rather than building a site that maximize the density and maximize the size and scale really strive to get more of that middle uh that missing middle type of scale. The project would be primarily market rate as far as its sales price. Uh but per city policy, 10% of the units would be priced for sale to be affordable to families earning um I believe it's 80% AMI. So that that's the concept. There's still a long way to go um from one very simple picture and site plan. they uh once they're they're named, we'll be working on a on a formal contract uh to solidify a lot of the terms and responsibilities of both the buyer and the seller. Uh and then they'll be then then they'll be able to begin the city's typical development review process. So, expect a sketch plan submittal to the planning commission and to the city council. Reszonings, site plan approvals, there's still a long way to go and a lot of public input that still has to be uh secured. Um but this morning we're ready to uh to follow through on the on the discussion that we had. Uh as we know in close session we're not able to make any formal decisions. Um but it is acceptable to provide staff some direction to talk to one party over the other. Um so I want to forward it to the to the end. Um uh and so with that in mind, I'd be looking for your um discussion and your direction to formally uh recognize this development team. Um we do have a representative from the team here this morning. Bill Cater with Hemple Real Estate. Uh a veteran in the real estate uh industry um is here this morning with us to to answer questions if any. Um, but we'd be seeking your recommendation uh to identify this team as the preferred developer and then start preparing a contract to bring to the city council. And with that, Chair, I'll turn it back to you. >> Yes. Thank you, Mr. Nuendorf. Uh, colleagues, questions for Mr. Newondorf, Commissioner Jackson. >> Yes. Thank you, Mr. Chair. So, I want to thank everybody who put in a submission. Um, they were all very interesting and there were a lot of elements in each one that was was excellent. Um I have a question for you uh Mr. Nounorf about the um affordable units. They're for sale. Do we have as a city um the mechanism to make sure that those are affordable into the future? So someone buys it at an affordable rate but then sells it at market. Is there a way to prevent that? >> There is. Yes, it it's these days it's rare for affordable condominiums to be built or affordable town homes. But if you recall, um, uh, Enclave Development and Lifestyle Communities have a condominium building in that site, um, where Macy's Furniture Gallery is. So, in those agreements, we've already established a legal framework to lock in the initial purchase price and then the subsequent prices into the future. So, we would follow that model. Um, the state-of-the-art of legal contracts is always evolving, so it probably won't be identical to that. Um but it'll be the next iteration of that and we're confident that we can secure that type of outcome. >> Okay. Thank you. And I just want to say with this um group of developer or partners in this development when I was scoring it um there like I said each submission had something really interesting and really compelling but this one overall just kept scoring higher than the others in every way I looked at it. And so that's I I just wanted to let the public know how I made my decision looking at all the factors we'd put in that RFP and that we articulated as an HR. Um this one consistently scored the highest. >> Yeah. Thanks, Commissioner, and thanks for recognizing all of the companies that applied that were interested in this site and and manager Nundorf, you did a great job of showing the breadth of possibilities here and um landing on this particular group was a was a was a process and a difficult one, especially I think when we got down to the last three. So, this is just something to be thinking about and and I'm sure you'd be talking to Mr. Kendall about it, too. But as we as we move down this pathway with this development team and I think I anticipate the HO recognized them this morning but uh the the notion of in its simple form how do we tie uh the purchase to the product delivery because there's a regulatory process involved in all of this. So, how do we weave our way to a result where we get the project that we want uh and uh we get the funding that we expect the sale of the property, but the buyer gets the the land. How do we navigate that? >> That's that's a great question and that's part of the the main part of the reason why we had all the real estate conversations sitting as the HR. We really try to bifocate those two responsibilities of regulatory, land use, zoning, landscaping, design, all those types of things. Try try to keep that in one bucket under the city council. But as the HA, that's where we really focus on more of the program and the and the financial outcomes. So, in our in our uh uh close conversations, we didn't talk a lot about trees or how wide is the sidewalk or where's the bike rack or what's the right density and is the you know is what's the right f we didn't get into those kind of conversations as an H. We really focused on the price, the ability ability to finish it and get it done and the general concept. But sitting as a city council, that's where we'll enter into the contract to secure the price and the timing, but then still work with our H with our planning commission and go through that full regulatory review process. So um both uh both strategy or both goals can be achieved uh that way and Mr. Kendall and his staff has have helped us with this in the past and they'll they'll work us work through it with us again this time. >> Yeah. What strikes me that you know I mean this morning we authorized the transfer the property uh to the city. So now the city has the property and the city has the regulatory function. So maybe it's a timing issue. Maybe we don't want to really transfer that property. I mean we can do it anytime we want. But if you if you want the HRA uh to decide what the timing is for selling that property based on what occurs from a regulatory standpoint, we might want to be careful about how we do that because it it strikes me that you could get in some awkward spots from a from a legal standpoint and and and you know or the if the property stayed with the HA, there could be some sort of a contingent purchase agreement contingent on the city approving a plan that they had advanced or some acceptable variation thereof. But I you know it just it just struck me as look I looked at all this and thought about transferring that property now. Do we really want to put the city in a position where it's both the regulator and the land owner and deciding when we're going to transfer the property. Maybe it's fine. I don't know. But just give it some thought because we got some time here to to think about that. >> We'll talk about that with legal and go through the process. >> Okay. Okay. because over we're not we're not authorizing the sale to I'll call it the Hemple group today. We're just you we're just following your recommendation that uh we continue to work with them >> towards that end. >> Correct. And we'd anticipate bringing a formal contract together uh probably late September is where we're aiming. >> Okay. Okay. And I want to make sure they get what they expect for a project too before they agree to buy it. I mean, there's it's it's a two-headed coin. So, all right. Um, so we got a we've got a uh that cause anybody else to think that about things they wanted to ask? Yes, Commissioner Risser. >> Um, just briefly, it um I do want to acknowledge and it's kind of too bad, you know, some of the things that we said were behind closed doors because I do really think this design took into account um the challenges of the site and there were many. there are many and so I do want to just publicly acknowledge that I was impressed by that. >> Thank you. Um, all right. We the staff is recommending a motion that would recognize the development team consisting of Hemple Real Estate, Monarch Development, Jester Concepts, and Roos Adviserss as the recommended development team to to potentially purchase and redevelop the vacant property of owned by the owned by the I'll call it broadly the city located at 5146 Eden Avenue and authorize staff to prepare a sales agreement uh for future consideration. Is there a motion of that effect? >> So moved. >> Second. >> Mr. Jackson moves. Commissioner Pierce seconds the motion as stated. Any further discussion with regard to the motion as stated. All right. All those in favor of adoption of the motion as stated say I. >> I. >> I. Opposed. Carried. The motion is adopted. Thank you. Manager Newendorf. >> And you've got the next matter as well. Yes. And this next one is uh in the same general area but completely unrelated. So, this is resolution 2025-05 and it's seeking an interfund loan uh to help with the financing of the big highway 100 interchange Vernon Road project that's actively underway. If you drove or walked or somehow got here this morning, congratulations. Um it's a little bit messy and dusty right now. Um, so, uh, this is a city-led project where the city is working in conjunction with Henipin County and Mindot to reconstruct multiple bridges along Vernon and 50th Street um, over Highway 100. Our engineering department has put together quite a list of various funding sources uh, including uh, primarily funds from Henipin County and from Mindot and state funding. Um, but a lot of it is is local funding as well. It's a very big project. Um, and uh, fortunately we are in a in a position where uh, the HRA has a fund uh, called the Centennial Lakes Fund that has some monies available to help fi provide uh, financing for that project. So this is an image of the project that we're actively building. Um, a reminder that this site is immediately next to our Eden Wilson TIFF district. Uh and uh last summer we rebuilt 50th and Graange and Eden uh using funds from the Eden Wilson TIFF district. So then and that's part of the reason why why we're recommending this strategy. Um many years ago back in 1988, the city set up the Centennial Lakes TIFF District and it lot has happened since 1988. um uh both physically as well as in in state legislation. Uh but when that tiff district closed, it accomplished many goals and still had some monies that were left available. Uh the state law back in that time allowed the city to retain those monies for future public improvements. Um and over the years the uh as the the legislation changed the city adopted a modern B boundary shown in green on this map uh whereby those funds could be directed to public projects and public efforts not just at Centennial Lakes Park um or the surrounding properties by Centennial Lakes but primarily throughout most of the commercial districts in Adina. So over the years, these funds have been used to support uh new sidewalks, new inter intersections, street lights, um additional studies. Uh it was a uh served as a fund to really advance the the city's infrastructure. So what we're recommending this morning is uh to help complete the financing for this big bridge project is to tap into that fund. Um we have two options. We could just provide a direct payment, but we're recommending that we do an interfund loan uh and and direct those funds into the Eden Wilson TIFF district. That way, uh when the Eden Wilson project uh uh continues to pay its taxes over the next 25 26 years and beyond, uh there's an there's a possible opportunity to repay that inter fund loan and then in essence recycle those infrastructure dollars. Uh now there's no guarantee of repayment. I can't guarantee what the tax situation looks like 25 years from now, but we'd like to set up this opportunity um for potential repayment. So in that existing fund, there's just under $2 million available. So we're recommending a loan uh at one one half million. uh the loan would would uh garner interest at 4% annually and repayment is possible but not guaranteed. So this that's why we call it an interfund loan. It's just amongst oursel but we're really recommending this strategy um to to set up conditions where we can really replenish that infrastructure fund. It's been very helpful for the last 20 years. We're hoping 20 years from now, your predecessors might also find a helpful source for public work. Uh so with that description, Mr. Chair, I'll turn it back to you. But we certainly recommend approval of this resolution. >> I think you meant our successors, >> not our predecessors. >> Oh, sorry. Yes. >> I don't think any of us are going to be around 25 years. So, >> good catch. >> Yeah. Commissioner Rer, >> um I'm a little confused by this. What I would like to know is I was thinking that money would help pay down the debt that will be generated for the bridge project and there would be less of a, you know, long-term burden basically on the general fund. But when I see this, I'm kind of feeling like that benefit really won't necessarily be there. or it'll just go to another debt. Can you explain it? >> Sure. Sure. So, um, you were right on the first part of your comments. So, this $1.5 million will directly be deposited into the fund into the bridge cost. So, rather than going and borrowing another million and a half dollars and paying market interest, um, we will not have to do that. So we we won't have to the amount of debt we issue for the bridge is lesser. Impact on the le on the tax levy is lesser. Impact on the taxpayer is reduced. Um uh so that that is all accurate. What we're setting up though is that in the future if we wish we can repay ourselves into the Centennial Lakes Fund out of monies that are collected from the Mason Green project. Um right now that project has been online for just over a year. It's performing very well. We expect it to perform well in the future. Um and so by structuring this as an interfund loan, we have the possibility of repaying ourselves um to recycle those monies. But for the for the immediate project, your uh statement is is exactly correct where we're we're less reliant on the private sector to issue debt on the bridge. >> I think Commissioner Rer's point is well taken. We what we did in a prior meeting was authorize the certain level of borrowing. And so what this does is cause us to go to the markets with a lower level of potential borrowing. That's right. depending on what we see for rates. >> Correct. Which is what I think we we all sort of anticipated was kind of baked into this. Um but it was a good question. >> I have one question. >> Yeah. Commissioner Pierce. >> Thanks, Mr. Chair. Uh can you um explain a little bit more detail when you say we could possibly pay ourselves back? You use the one example of the time horizon. Um, is that the only factor or there are other factors that we might choose not to pay ourselves back? >> Um, I would I would hope if monies are available, we would pay ourselves back. >> Okay. >> So, that is the intent. >> That that is our intention. A good example uh uh and Mr. shared, you you would have the best recollection of this one. We we took the same strategy back in 2011 when we provided a $5 million loan from the Centennial Lakes Fund to Southdale. We really wanted to get that Simon Properties to redo that mall and really start getting it back on their radar and actually investing in it, which as you can see has happened quite successfully. So that initial $5 million investment to Simon, we borrowed from ourselves. Rather than going to a bank, rather than going and issuing public debt and increasing the tax levy, we tapped into the Cent Centennial Lakes Fund, uh borrowed it from ourselves and then paid ourselves back. Um so that's that's the best example that I can think of. >> Mr. Russer. Um, so just thinking about the mechanics of this, um, when I'm looking at the actual wording, uh, that we're being asked to approve, there isn't language about repaying. And so I'm just want confirmation that that would be a decision that future bodies would have the power to vote on and accept or reject. >> I my intention was to modify the language slightly. I noticed the same thing. So after it says authorizing a transfer, I think I'd interline authorizing a loan and transfer. >> I'm comfortable with the way it is. If it means that the decision to do the repayment I mean because we don't know what the future and I really do appreciate Commissioner Pierce's >> Well, I think we have to we're the body that has to decide if we're going to lend it or give it, >> right? It can't be a subsequent council or H that decides that because that's all over then. So, we've either got to lend it or give it now. So, I just think that that language should include wording it makes it clear we're authorizing a loan and transfer of funds. >> Mr. Jackson. >> Um, thank you, Mr. Chair. So, the terms of the loan could say it's forgivable, right? Um, so that's so we could loan it and then not have it paid back. So I think that's a future decision. So definitely make it a loan. My question is um if we are depending on TIFF funds from Eden Wilson to pay it back, will authorizing this loan extend the time period that that TIF is open? So, if everything else is paid back and the time period has not expired, we would close the tiff district presumably. Um, but if we add this $ 1.5 million loan, will that extend that time? >> Um, yes and no. So, the the resolution um in section two, it uh it section 2.02, 02 it does clearly identify that principal and interest payments on the loan are due annually when funds are available. So if funds are not available there would not be a repayment. Um but if funds are a are available um this would be recorded as a debt on the books of the Eden Wilson district. So um right now that district runs for 25 years. At year 26 it stops. So we would not be able to to to increase the time there. But if something unforeseen would were to happen and uh we pay down the other tiff deaths early, we would not be able to close that district until we decide whether or not to to settle up on this loan or to forgive it. Um so it uh it wouldn't extend would not extend it past 25 years, but it would be recorded as a debt obligation of that tiff district. >> Okay. And does the resolution that we're potentially approving have language that it would be a it could be potentially a forgivable loan? >> I don't recall that it uses the word forgivable, but in the payment section uh section 2.02 02. Um the language that it uses does say the um that the loan shall be repaid on the first payment date on which the HR has available tax increment. Um there it says the HA in 2.06 may amend the terms of the interfund loan at any time, >> right? Yep. 2.06. Yes. Including a deter a determination to forgive the outsaling outstanding balance. So it does give the HR that option. So, is there a way to put a tickler in that um when this time occurs that our future um our successors um uh are looking at this that they'll know that this is an option um that we made this decision in 2025 um now it's 2040 and the loans everything else is repaid and this is the only loan outstanding then they could make that decision. Uh we could certainly add language. Um I don't know if that's necessary. You have a full finance department that monitors debts and loans. We report uh annually to the state auditor our debts and loans. We work with an annual accountant and auditor on on our revenues and and expenses. And you have a full staff that looks at this. Uh, also the first meeting of in of the year according to the H bylaws asks you to look at all outstanding matters and make a decision if if necessary. So I think we've got belt suspender and maybe another couple belts already. We could certainly add more, but I don't know if that's necessary. >> Yeah, I I don't if I don't think it's worth the time to table this, change it, and bring it back. Um, but it's just something I want to make sure that it's on it does stay on the radar so that future uh councils or HRs have the option of doing that. >> As Mr. Nundorf noted, there are several interactions that we have to have annually with the state and and others about this the status of the various districts that we have here. So, it never really leaves the field of vision for the people that are in these positions right now or or our successors. Right. >> Okay. Terrific. Thank you. >> Put it on the 25-y year tickler system. >> Yeah. Commissioner Rouser. >> And then I just want to verify there's no penalty for paying this down. >> Correct. >> Okay. >> Yep. It clearly say that. It clearly states that. I think it's 2.05 states that. >> Good questions. Anyone else? Okay. Um, is there a motion to approve resolution 20250 authorizing a loan and transfer of funds from the Centennial Lakes TIF District TIFF fund to the Eden Wilson TIF District and authorization to use those funds for the construction of public improvements on the adjacent roadways and bridge over trunk highway 100. >> So moved. Second. >> Mr. Jackson moves. Commissioner Agnu seconds the motion is stated. Uh, any further discussion? All those in favor of adoption of the motion as stated say I. >> I >> I opposed. Carried. The motion uh is approved. Resolution 20250 is approved as as moved. Okay. And now we've got a conversation again, Mr. Nundorf, about potentially amending redevelopment agreements with the Dina Enclave LLC and Lifestyle Communities LLC at the uh former Macy's site. >> Yes. Yes. Thank you. So, um, uh, I mentioned this project a little bit earlier. So, uh, last November, uh, the HA and the city approved redevelopment agreements with Enclave development and lifestyle communities for the, um, for the Macy's furniture site located at 7235 France. So, the um uh what this photo was taken last summer, but if you go out there today, it pretty much looks identical. Um might be a little bit more dust on on this on the driveway this year. Uh this is a big project, right? And it took almost three years for the developer to go from concept and early discussions through the planning to get work on the financing. Um and with these big projects, amendments are pretty typical. Um, so this is our first amendment. Um, for a project of this scale, I would not be surprised to have a second amendment, maybe even a third. I don't know when or what those that content will be, but that's just our experience. When you've got these big projects in multiple phases, amendments are pretty pretty typical. Um, so the amendment today is pretty limited in in its scope. Uh, essentially, we're really just focusing on the timing. Uh initially um the developer developer contract with Macy's retail was that the developer was going to purchase the land last Janu last January and then lease it back to Macy's while they ran their furniture store um and then eventually terminated the lease when they when they vacated and it was getting very complicated. What they did instead was redo that purchase contract to essentially say we'll purchase the property when you vacate rather than do all that leasing arrangement. Um and so earlier this spring in in May uh late Macy's did move their furniture furniture operations into Southdale Center. So since the end of May, first week in June I believe uh that property has been vacant. So, the developer and Macy's um are now looking at early September is the closing date. Um the uh the project is the same. The developers are the same. So, that's all the same, but it's a 9-month delay from the time that we first initially thought the developer was going to purchase the the site. So all of the dates in our redevelopment agreements presume that they purchased the land in January when in reality they're not going to purchase it until September. So while the deal is the same, what's changed um uh what's changed is that everything all the dates are pushed back nine months. So, in your packet, there's three amendments uh that have the same content, except what's new is there's a table that shows anticipated start dates and required completion dates. We've added nine months to all the dates from what was originally approved last November. Um, so with that, uh, with the approval of that amendment, the developer can get back on track so that when they close in September, their TIFF agreement is still valid with dates that work. Um, they can secure their financing. Um, their intention, and uh, Patrick Brahma from Enclave is here with us this morning if you have any questions for him. But their intention is to take down the land uh purchase it in September, begin moving forward uh to develop the site this fall or winter uh and then most likely likely they would serve as master developer and start doing the utility work, the internal roadway work so that they can create those three paths that will then be individually constructed on their own schedule. Uh one of one of the things they've learned uh in the last nine months as they've really started to focus on how you build all this is that um it just adds to the whole financing cost if you don't move the utilities first if you don't put the curb and gutter in first and the storm water tanks. Um, so that's their intention is to do all that initial site work up front, create those pads, and then pull individual building permits for each of those uh four buildings in the future. So that's the uh that's the the background, the rationale for the amendment. Um uh we're happy to bring this forward. We've uh I've been in communication with the developers on at least a monthly basis. Uh sometimes a daily basis as as things come and go and and little issues arise and get and get settled. Um but we're excited to continue the m momentum on this site. Uh we're very excited that Macy's relocated into Southdale, right? That's an great business. We like having them here. Uh we think strong Southdale is a stronger Southdale with that furniture store uh assembled there, but we're also very excited to see this site be repurposed and redeveloped. Um and so with that background, we certainly recommend that these amendments be approved. And Mr. Chair, I'm happy to stand for any other questions. >> Good questions for manager, excuse me, manager Nundorf. Commissioner Risser >> um can you go to the image that shows economic benefits in your chart? Now, this has come up with other ones and I have sort of been wondering how do we figure out the estimated market value and I I did go look at Henipin County and this property for 2025 is having an estimated market value of 15 million and over the course of the tiff district, you know, I'm kind of thinking that's kind of a big change or or differential. I mean, it could be meaningful for, you know, some money to have, but can you just comment on why that's so much lower than what Henipin County has? >> Sure. Yeah, great question. Um, so in this presentation, every slide is from last November except for the one that I recommended we change the the calendar. So, I did not redo all the all the projections. So, in 2024, the market value was 12.1. it has increased just based on market conditions this year. So certainly um uh you know that's uh it had that's why there's a a difference there in the big picture whether the base starts at 12 million or 15 million is fairly immaterial when you're looking at a completed project that's valued at about a quarter of a billion. So eventually uh as we refine the numbers on the project um uh you know we'll look at the most recently available data um but right now the tiff agreement um that we entered into presumes last year's valuation and when we write those we always write them so that if there is uh an error we heir on the conservative side to benefit the city. So, um, we're not recommending redoing all the numbers, all the TIFF numbers. We're just recommending changing the dates. Um, but the actual revenue recognized by the developer will certainly be affected by this 9-month delay. >> So, we won't have, you know, multiplying out over 20 years, that's 60 million of property tax. That won't be a hit that we'll be taking. It'll be factored in because 12 and 15, you got differential. >> Would you explain that? Would you ask that question again, please? Um >> I I realize it's the tax on 60 million and so it's not 60 million outright, but it just I keep thinking that well it you know what it's okay we can move on. >> Expect those numbers to change annually. um you know as the valuation of the property changes every year that number is always a moving target but when we started this conversation last year it was 12 and that's that's still the starting point but expect that number to always change your chair >> Commissioner Jackson here. >> Yeah. I think what Commissioner Risser's getting at is uh the taxes that will be levied on this property will be based on what initial value is it the 12.1 million or the actual sales price or what is the um the baseline figure that will be taxed for purposes of Henipin County and and and so so that the market value um that is beginning that continues to be taxed and revenues generated during the um tiff period. >> Sure. So when we certify this, there's another step in the process. This is kind of behind the scenes staff and auditor kind of kind of uh roles, but when the developer purchases the site will then certify the tiff district and once you certify it, that's when you lock in that base. Um so we would expect to certify it in September. And so whatever the number is in September would be the base. So, if that's now at 15 million, that would become the base for the tiff district. Um, I think that answers your question. >> Yeah, I I think that's what Commissioner Risser is getting at. So, thank you very much. >> A big thank you, >> Commissioner Pierce. >> Um, I I just had a um a question, more of a clarification. So in the when you're teeing this up as really just a timing issue. Um and then in the item report though we do talk about um financial uncertainty, financial markets. And so I I'm just when I first read through this, I was thinking that there were challenges from a financial perspective in getting funding and that was one of the reasons we were looking at this extension but then in the presentation it is more of a timing issue. So, can you just clarify, excuse me, if you could just clarify um whether there are financial issues or not or perhaps um Mr. Brahman could come up and speak to that as well. >> Sure. Yeah, happy to. So, it's a little bit of everything, right? It's um uh uh the financial markets this year have been in flux. You know, our tariffs on, our tariffs off, how much is that refrigerator going to cost? How much is that concrete mix going to cost? There's been lots of questions. So that certainly has affected this project's budget as well as most projects in the country. Um so uh the there's certainly financial um uh uncertainty in that regard. Uh it's also challenging for an investor to commit to the project when they don't don't know what the price tag is, when they don't know what the returns are. Um, so I, you know, I won't I'll let Mr. Brahma speak if he if he wants to get into more details, but, um, I don't see the these as financial problems, but certainly in the decision to not acquire the land and then lease it back to Macy's, I have to think that a lot that also in that in that decision was what are interest rates going to be in January versus September? Are they going to be higher or lower? because they were trending up or they were trending up and then they were down and then the Fed said they're going to lower it. So, they're trying to get the best deal. So, pushing the closing down the road certainly should help their financing. Um, uh, so I think it's a a number of factors that lead to this schedule. >> Thank you. >> Further questions on this issue. Is there a motion to approve the first amendments to each of the three redevelopment agreements for 7235 France Avenue, including the southwest element, the northwest element, and the east element, and authorizing staff to carry out the terms of the amended agreements? >> So moved. >> Second. >> Mr. Jackson moves. Commissioner Pierce seconds the adoption of the motion as stated, approving those first amendments for those three elements, components of the um project at 7235 France Avenue. Any further discussion, >> Commissioner Brisser? >> Um, I realize that this is relatively a routine vote. I did vote against this. I have been doing more looking into um issues that have to do with development. We did just get back our quality of life survey. Overdevelopment and incorrect or inappropriate development is a concern that a lot of residents have. Um, I did go back and look at the greater Southdale area final land use and transportation study which was created specifically for Henipin County and Dina which makes sense for this area because it is France Avenue and York and it very specifically says that this is a place where we should have incremental change and we keep putting these tiff districts in place that go in the opposite direction that are transformational change. And so I just and we tiff it in order to help move it along. And in this case, it's been tiff and also spark. And so I just wanted to make that statement. I can't support this partly because I haven't supported it in the past. But as I look at, you know, the roads that we're going down and where we're headed, this just doesn't make sense to me as a tiff district and this type of development. So I wanted to just explain that. Other comments? Okay. Thank you, Commissioner Mercer. Uh we've got a motion and a second to approve the first amendments uh as stated to the uh contracts to redevelop the property that we already approved redevelopment of u in the form of this motion is uh that's let's vote. All those in favor of adoption of the motion as stated say I. >> I opposed. >> Nay. >> Carried. The motion is approved. And then uh we've got a spark program update and it looks like a little out of sequence here with the agenda, but uh I'm assuming the executive director will comment after we get to the spark. >> Yeah, I have two quick items after after Mr. Nundorf raises this. >> All right. Uh just an update. So no action on this. >> Bill, excuse me for a second. Mr. Mr. Brahma, do you want to come up real quick and be I was thinking before you take off, you want to come up real quick and and answer Commissioner Pierce's question. How are you doing on your on this project and the financing? >> Glad to chair, members of HA, happy to stand before you again. It's been a while since last November. Um yeah, uh happy to respond to the comments on timing versus financing. Um Mr. New Dorf did answer the question similar to the way that we would approach it. So similar answer but uh kind of breaking it down and maybe a different lens is um there's two components that the way that we're looking at the project. One is this first land closing all the master site improvements because it's such a dense site with so many uses and a lot of shared infrastructure, shared storm water, shared road, shared utilities. Um, getting that step done and out of the way so everybody can then take their individual piece and move forward with it from a financing partnership perspective makes it a lot cleaner. Originally, we're thinking we're going to be able to parallel path it all, but it it's become a little bit um mucky doing that. So, we're separating the two. So, we're we're going through this closing right now, the land closing. We're financing all the master site improvements, getting through that. It'll take us through the spring and then over the winter in the meantime, we'll keep parallel pathing. We intend to bring forward our go forward letters, I think we call them, for all the individual buildings and work with the staff team and you as needed uh on the final packages for the vertical improvements for each of the buildings. Timing is a huge factor. I could talk for five minutes about all the things that have happened over the last year in the market and whatnot, especially since last November when we got our approvals. So, timing, market conditions are humongous factors for us. >> All right, any questions for Mr. Brahma? All right. Thank you for being here this morning. >> Appreciate you having here and getting a firsthand update. It's helpful. Okay. Thank you. Uh Mr. Nundor, sorry for the interruption there. I thought I saw him start to move in his chair and I thought, "Oh, let's get that question." Commissioner Pierce has answered. All right. Yeah. Back to the Spark. >> Sure. Just wanted to provide an update on the Spark program. Um so there's a couple things to keep in mind. Initially, the Spark program was set up uh with statewide legislation and was the legislation required that it be terminated by the end of 2025. That state law changed um and it now allows it to be terminated in 2026. So, we have a little bit more time than we thought we did. Um in a future meeting, we'll bring forward a a a resolution to recognize that one-year statewide extension. So it's December 31, 2026 now is the deadline. >> Correct. So that that's an important date to to remember. >> Uh when we were negotiating with Enclave and others, we thought 2025 was the date. So we in some of those documents, we included language to use SparkCC um based on the deadline in state law. But now that we have another year, we're considering some other ways of deploying those funds. So, we've got most of the money's committed, but starting to refine our balance sheet. We have about $450,000 still available in that program. Uh there's always uh an option of of um turning the monies back to the county. That is always an option if we choose. Um so far, we've chosen to deploy those monies into businesses here in Adina. Um, and so there's three restaurant projects that I'm currently working on to possibly use these monies. Um, with the Enclave and the lifestyle proposal, using TIFF is enough to make their budgets whole and we can fill in their gaps with TIFF. Um, so knowing that we've got a solution for that project, um, we might deploy the the remaining monies to rest to to three other smaller businesses instead. So, just wanted to give you the heads up on that one. One of the bu businesses uh is the potential expansion and complete remodel of a restaurant down at 50th in France. They're looking at completely repositioning the building um to be more competitive in the marketplace and that would uh that would entail a a partial second story. So, that project is going to start going through all the zoning regulatory conversations in the very near future. uh planning commission, city council, etc. But in order to reposition that property, and I think it is a good idea to reposition it for the future, a a tiff uh either grant or loan would be very helpful to make that project happen. Um so I just wanted to bring that to your attention. There's a second restaurant project um uh nearby here actually. Um it's the uh it's the restaurant in the Mesa Green building. they continue to um have challenges with with parking. They thought that the the existing parking lot would be sufficient. What they're finding is that their customers um just expect to have more readily available parking. They're not so keen on parking on the street and walking half a block or a block. Um, so we're also looking into possibly doing a loan to that business to expand their parking lot. That would allow them to extend their hours of operations and reposition them for better success. The restaurant is doing is doing well, but they're the parking continues to be the challenge on that site. And then the third one that I'm working through uh is a restaurant in an office building um uh 7201 Metro the E building the old Regis headquarters. When the owners purchased that building they intended to put a restaurant on the first floor and it just hasn't happened yet. So right now that space is raw and vacant. Um, we've got a couple potential users for that space and they're they're running into the cost problem where the cost to transform it from a vacant space into a space that has plumbing and electrical supply that can actually operate a restaurant is just much higher than it used to be. So, we're looking at possibly doing a streamline grant or similar to that project to get a restaurant in there. So, three potential op uh options there. I'm going to continue to to have discussions with all of them, but I just wanted to bring that to your attention because um you know, we still want to make sure that we can deploy these funds to help businesses in Adina and um to have three potential restaurants reposition for success, I think is something that the community would really appreciate. So, um, wanted to bring that to your attention and if these negotiations work out, I'll be bringing full contracts to you, uh, in September or October, um, to actually take action on, but I just wanted to put it on your radar today. >> Thank you, Commissioner Jackson. >> Yes. Thank you, Mr. Chair. Two questions. One is since the Highway 100 bridge is designed differently than we thought when we approved Maison Green and we've got that easement um on the land to the east. Is that potentially where the parking lot would go? >> Correct. Correct. Yes, there's um Yeah, there's an easement that right now to the west. >> Yeah, to the west. It's right along the highway. >> I was thinking to the east. No, to the west. >> Yeah. Yeah. So, it's that green space just to the west of the existing parking lot. And part of the reason why it's so expensive is that it was designed and built as landscaping. And so, to turn it into parking, you've got to build a retaining wall and then you have to handle the storm water. So, it's an exorbitantly expensive parking lot expansion. U but that is the location where it could potentially go. um the owner is still working through engineering to see how that could work and and solidifying their pricing. If they feel that they can make it work from an engineering perspective, they have to make a return trip to the planning commission and I probably city council because it is a site plan change. So, there's still a lot of process to happen in here, but that's the the location where more parking could be possible. >> Okay. Thank you. And then um at the um Ebuilding if there's going to be a restaurant there and potentially we fund it is there and this is just an idea but um you talked about electricity and plumbing but you didn't talk about gas. So it would be kind of cool if it was an all electric um restaurant if that's possible sort sort of with an environmental um you know electrify everything lens. I just ask that be part of the conversation. I'm not going to put any strings or anything, but it would be an interesting conversation to have as you're talking about that. >> I'll I'll definitely bring that up. I don't know if that aligns with how they make their product, but I'll certainly bring it up. >> Okay. Thank you. >> Other questions for Mr. Nudor for comments on his activities. Okay. All right. Uh thanks. With respect to the e- building, that causes me to turn to our executive director. Um, this is more in the capacity of our city uh council hats, but uh there was a loan. We we uh modified the loan for the chamber and the first payment I think was due in July. I'm assuming they made that payment. >> They have. >> Y that was what close to 20,000 >> I believe that's right. 18 maybe. So something like that. >> Yeah. I think the total annual obligation was 38 or 40,000. >> Yeah. The first the first loan payment was 19,000 and change. I don't remember the precise amount >> that's been made. Yeah, >> that was made in uh the last couple days of June. So, they paid a couple days early. >> Thanks. >> Um Manager Neil, >> thank you your honor. Um two quick items for me. One, um this is budget time of year. Budget time not only for the city but also for the HA. The HA budget this year has really just spent or for proposed for 26 is just the annual kind of incremental 3% growth in the levy and and really the same basic uh expenses and and program that goes with that. But the you have to also in your capacity as the HR uh endorse the levy, approve a preliminary levy just like you do as a city council. That's on its way to you and I think we're going to pre preview that at the next H meeting um which is on August 28th. And you noticed today that this was all all Bill all day at this meeting. The next meeting on the 28th will be all Stephanie all day. So we've got their their items kind of coordinated with various vacation schedules and things like that. And so Stephanie will be here um and line up her items at the next cherry meeting on the 28th. >> Yeah, I'm glad you mentioned that because that was one of the questions when I looked at my calendar. I thought, do we have a meeting on the 28th or not? So we do. Oh, indeed. Okay. Uh, anything from commissioners? >> Mr. Agnu, welcome back. >> Thank you. >> Uh, yeah, you look like you're doing great. >> No, I was I was sad to miss the meeting, but it fell on the day that she arrived and I wasn't ready. >> You were hours. >> You thought it was going to she was going to show up on Sunday, but >> I thought she'd be early and she was four days late. So, those were a long four days. And does three feel a lot different than two? >> It's still easy in the sense that like she just sleeps a lot. Um I expect it to get harder. >> Yeah. Well, congratulations and thanks for being here this morning. >> All right. Um that prompt anybody else to think of anything they wanted to comment on. >> Right, Commissioner Risser? Just real quickly, I don't know if this is happening in other parts of Edina, but I saw homemade signs to encourage people to drive more slowly with really fun interesting, you know, slogans. One was drive like you're headed to Whole Foods, not Monaco. And I thought, go Edina residents. This is really great. So, >> yeah, you've raised an interesting issue. I've been getting quite a few calls about speeding in the neighborhoods and uh maybe some kind of a more effective communication strategy around uh for our residents about uh taking a little bit more time to get from A to B would be good. Plus uh because enforcement is tough. I mean our guys are out there doing their job, but >> we have a whole campaign around drive 25, but I will talk to engineering about maybe putting some money behind that campaign again. >> Okay. All right. Is there a motion to adjurnn? >> So moved. I second. >> Commissioner Agnu move. Exceroo seconds. Commissioner Jackson move the uh the um adjournment of the meeting of the HA this Thursday, August 14th, 2025. Any further discussion? All those in favor of adjournment say I. >> I. >> I. Opposed. Carried. >> The H for Thursday, August 14th, 2025 stands adjourned. Did you