Edina Housing & Redevelopment Authority Meeting / June 13, 2024
Edina approves $850K loan for senior housing repairs
Tax Increment Financing (TIF) District Boundary Modification
Authorization of Tax Increment Financing Pledge Agreement
Review of Inclusionary Housing Policy
Full Document Analysis
Votes (3)
Support for Common Bond Affordable Housing Project (Resolution 2024-03)
Dissent: None
Moved by Commissioner Jackson [Approx. 8:25 AM] · Seconded by Commissioner Pierce [Approx. 8:25 AM]
Manager Hawkinson presented a request for an $850,000 deferred, 0% interest loan to Common Bond for the rehabilitation of South Haven and Summit Point, which provide affordable housing to Edina's seniors. The discussion highlighted the significant need for repairs (mechanical, windows, interiors) to ensure the longevity of these 20-year-old buildings and to support the vulnerable senior population. Commissioners questioned the loan terms, property aesthetics, potential for other funding sources like IRA tax credits, and the developer fee structure. Common Bond representatives explained the project's scope, the necessity of the deferred loan due to low rental incomes, and the process of seeking additional financing from Minnesota Housing and Hennepin County. The project was viewed as aligning with city values of health, equity, and sustainability.
Modification of Eden Wilson TIF District Boundaries (Resolution 2024-05)
Dissent: Commissioner Rer abstained, stating she did not understand the matter well enough.
Moved by Commissioner Jackson [Approx. 8:50 AM] · Seconded by Commissioner U [Approx. 8:50 AM]
Economic Development Manager Bill Nindorf requested approval to modify the Eden Wilson TIF District boundaries by removing the Tuppa Park parcel. This action was necessary to simplify the complex certification process with the county, which was complicated by historical land survey records for City Hall and the park. Experts from Ellers & Associates and Dorsey & Whitney confirmed that removing the parcel would not invalidate the district's original substandard building qualification, as the Perkins site (still included) satisfied the requirements. Commissioners discussed the implications of removing the park, noting it would preclude the use of Eden Wilson TIF funds for future relocation of historic buildings on that site, requiring alternative funding sources if such a project were pursued later.
Authorization of Tax Increment Financing Pledge Agreement (Resolution 2024-04)
Dissent: None
Moved by Commissioner Pierce [Approx. 8:57 AM] · Seconded by Commissioner Jackson [Approx. 8:57 AM]
Economic Development Manager Bill Nindorf presented Resolution 2024-04, which authorizes the HRA to execute a tax increment financing pledge agreement. This agreement formalizes the HRA's commitment to repay approximately $5.4 million of bonded debt, authorized by the City Council, using tax increment funds generated from the Eden Wilson TIF District. These funds are earmarked for public roadway improvements currently underway within the district. The resolution ensures the city will be reimbursed for its upfront investment in infrastructure.
Notable Quotes (7)
Today's request is adoption of resolution 2024-03 what this is seeking is a deferred loan of $850,000... it would be 0% interest this could change depending their seeking tax tax credits as well and sometimes tax um the way those form that uh small interest may be more beneficial.
within the apartment units we have some original kitchen cabinets flooring...but we're anticipating a full refresh of Apartments um to upgrade materials um that are being used in apartments and to provide residents you know upgraded living environments.
I think that um over the years that common Bond's been in we've had such a good relationship with you and uh understand the stresses that you're under I think is that um as you try to provide housing for people that is high quality really decent quality housing uh and you are getting rents in return that don't cover the cost of operating and and also the cost of maintaining that property uh it is extraordinarily difficult for organizations like years to to to function.
the request this morning is to simply just simplify the whole certification process and just remove that Park parcel from the Tiff boundaries.
If we remove those two buildings are we at risk of invalidating the Tiff District Grand hood or Mr linger one of the two.
greater than 50% of the buildings that are included within the Tiff District need to qualify a substandard so when we remove this parcel we will still have one of one building that was originally substandard so that's 100%.
this resolution is a followup from a recent city council meeting where the Council authorized the issuance of bond of bonded debt...the resolution this morning is simply the uh uh the agreement of the HRA that when tax increment funds are available from the Eden Wilson district will repay the debt.
Ordinances & Resolutions (10)
Resolution for possible support of a deferred loan to Common Bond for affordable housing rehabilitation.
Data source cited for statistics on housing cost burden among Edina senior renters.
Project-based Section 8 contracts by HUD, providing housing assistance for residents at South Haven and Summit Point.
Annual report on city investment in affordable housing, where rehabilitation projects are captured.
Resolution to modify the Eden Wilson TIF District boundaries and associated TIF plan.
Report cited in discussion regarding substandard buildings within the TIF district.
Tax Increment Financing District subject to boundary modification and a pledge agreement.
Resolution authorizing the execution of the tax increment financing pledge agreement for the Eden Wilson TIF District.
Agreement to repay city debt for public improvements using TIF funds from the Eden Wilson District.
Federal legislation with potential tax credits for energy efficiency in buildings.