Light is already on. Guess we're ready to go in the back room apparently. Jennifer, just I stop my mental wanderings here and we'll get going. Too much to think about here these days. Okay, here we go. Well, good morning everybody. It is Thursday, January 15th, 2026, and it is 7:30 in the morning, and this is the meeting of the Adena Housing and Redevelopment Authority, and we've got some interesting uh topics ahead of us today. Um, we're doing these meetings uh both live and uh online and so there may be some people watching online. And uh if anybody wants to uh call in to uh talk to the HR or discuss with the HR a concern of theirs that they want to address in community comment uh they can certainly do that. We don't have any public hearing activity this morning. So public comment would be your only opportunity to talk to the HR. And if it's a topic that's on the agenda or scheduled for a future public hearing, those are topics that you cannot cover uh in any comments that you wish to make to the HR whether you're in person or online. So, having provided that information to everybody, let me call the meeting to order and ask uh our executive director, also our city manager, Scott Neil, to call the role. >> Thank you, Mr. Chair. Commissioner Risser >> here. >> Commissioner Jackson >> here. >> Commissioner Pierce >> here. >> Commissioner Agnu >> here. >> Chair Hublin >> here. Uh, next is the pledge of allegiance. >> 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. >> Good way to start any day. Uh we've got a meeting agenda that's been published uh both for our benefit and the benefit of our residents. Um is there anyone who wishes to modify the form of meeting agenda, the proposed form of meeting agenda? Hearing nothing. Is there a motion to adopt the meeting agenda as published? >> So moved. >> Second. >> Commissioner Jackson moves. Commissioner Pierce the adoption of the meeting agenda for the uh meeting of the H this January 15th, 2026. Any further discussion? All those in favor of adoption of the meeting agenda say I. >> I. >> I. Opposed. Carried. Meeting agenda is adopted. We've got something to work from this morning. And now we are at community comment. We're going to put that uh phone number back up on the uh screen. All that dialin information so people can have that. And um I'm looking out in the audience and I see our public finance advisor. I see one of our interns and uh our intern and then manager Nounorf. I don't see anybody in the audience wishes to address the H. Do we have anybody online? Director Benerot. >> I don't have anyone online yet, but because there is a brief delay in the broadcast, I would recommend we wait a minute before moving on. 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. >> Thank you. It is now 7:35 and I still don't have a caller. So I think it's safe for you to move forward with the agenda. >> All right. Uh it doesn't look like our executive director has any comments to make relative to the prior meeting. So it's not on the agenda. Assume that means that no one commented that requires your response. Um, next is the consent agenda. There are half a dozen items on the consent agenda this morning. Is there anyone on the H that wishes to remove an item from the consent agenda? And these are the beginning of the year kinds of things that we do, official newspaper, official depositories, things like that. Uh, so um, hearing nothing. Is there a motion to adopt the items on the consent agenda in a single motion? >> So moved. >> Second. Commissioner Jackson moves. Commissioner Pierce the adoption of the items on the consent agenda in a single motion. Uh any further discussion? All those in favor of adoption of those items on the consent agenda in a single motion say I. >> I. Opposed. Carried. >> And those items are all approved. Uh items 6.1 through 6.6. And then we will turn to reports and recommendations which is the heart of our meeting this morning. And this is a uh not looking forward but looking backward I guess and things that we accomplished uh in 2025. And we have our economic development manager here with us this morning, Bill Nuendorf and Stephanie Hawinson, our affordable housing manager. And uh we'll lead it off I think with 7.1 and that is the H year in review. >> Good morning. Each year >> uh helps the H function. Thank you. Um each year's uh city staff puts together a year and review document to summarize the actions of the H in the prior year actions and accomplishments and also things that are still in progress. Uh we started doing this several years ago in order to be more transparent and upfront about our successes, about our projects and things that we expect to work on. Uh this document it's grown over the years. We're currently, this year, we're at 52 pages. Um, so there's summaries of of uh projects you'll recognize as you drive or walk through the community. We also include an several exhibits and appendices to summarize and document the financing that makes these projects work. Um, uh, as you're aware, the H uses tax increment financing, uh, from from time to time to help achieve the goals. And in order to be most transparent and upfront with how we use those dollars, uh I summarize a variety of different reports, financial reports, state reports, uh local reports, and uh glean out those relevant information about the financing of these projects and put that in the appendix. So the information in there is not new information. It's information that's been out and published in a wide variety of places. But in order to be most transparent and upfront with the community, uh we feel the best to put it in one place. Uh so this morning, I'll run through a summary of that 52-page document. It'll just be a summary. Um uh and then uh so as the chair mentioned, this is kind of looking backwards. Uh our second item is looking forwards. So we're going to do both this morning. Uh just a reminder as we get started, the HR was established in Adina in 1974. It's been around for several years working on projects throughout the community. It operates uh uh in order to pursue a set of objective uh objectives that were defined in 1977. Um uh at the time I would argue these objectives were groundbreaking. We were looking to promote redevelopment employment to increase the long-term tax value of this community. Uh working on multimmodal transportation. uh working on bicycle, pedestrian pathways, better connections between neighborhoods. Um uh other object uh the other objections or not objections, objectives, it's haven't had enough coffee this morning. um was to focus on mixeduse sites to separate that that older style of of zoning and land use where uh individual uses are segregated and separated but to merge those uses together to actually work, live and play in the same general space. Uh of course the HR also gets involved in streets, roads, bridges, sidewalks, uh and pedestrian crossings. Um uh affordable housing is a key goal as well. uh owner occupied rental families, senior citizens, the whole group of folks to make sure that there's uh affordable opportunities to live in a dinina. So these object uh these goals and objectives were established in 1977 and as I look at these um they still hold true today. If you look at the best practice of planning and de community development, these are still the best practices. They're very broad and general in their descriptions, which allows us to continue to use them uh as time evolves and as the community evolves. But I I did just want to remind us of those. We don't talk about uh those goals very often, but they're embedded in everything the H does. They're also aligned with a comprehensive plan that guides the city council. So that's that's how those two uh uh uh documents flow together. This year we uh Stephanie Hawinson and I put together a list of accomplishments. Um while it's a long list, it's not a very visible list. This has been a slow year for construction. Um despite that, we've had another remarkable year in Adina. Um so in no particular order, we're we're happy to see that the Finch Apartments on 77th Street were finished. The H helped uh uh provide some financing for that and bridge a gap that would have prevented that project from moving forward. And along with that, we uh delivered a public road uh that was incorporated into that project. We also made a a decision, you made a a decision to use some existing assets, some funds in the Centennial Lakes District and use that to support the uh debt issue for the new bridge on Vernon Avenue and 50th Street. That was in order to reduce the debt that was issued. We had some cash available. Part of the HR objective objective is to build road, bridges, etc. that connect our neighborhoods. So that was certainly an eligible an eligible use. We also saw some good project progress on 72nd in France with the Craftsman office building breaking ground earlier this year. Uh when I drove by the other day, they're just starting to get to the to to level five. That building is going to be topping out soon. They're aiming to have that substantially complete towards the end of 2026. And next to that is the apartment building uh called the setting. Uh that is also above ground now. The wood wood panel should be start uh to appear on site in the in the next several weeks. Um but those are two major accomplishments um just to get those started in a um in a financing environment that is it's been headwinds for several years. So, if you drive through the metro area, there's still some construction. There's not a whole lot. So, to have both of those projects kicking off this past year was remarkable. We wanted to make sure that we recognize that. We also worked with the state legislation um and were successful in securing legislation to possibly consider extension of two existing tiff districts. Uh that's not a tangible accomplishment yet, but it provides options and flexibility uh to the HR and to the city council. And that's also part of staff's goal is to make sure that we provide as many options as possible to achieve these goals that we're pursuing this year. We also talked quite a bit about our spark program. Um that was a program that uh it it's a one-time program embodied by state law. Uh this year we uh decided to um recognize the the modification in state law and give that program one more year. Um so that program will expire not at the end of last year but at the end of this year. Um and with those funds we also have supported a handful of projects. Um we modified a loan agreement with the Chamber of Commerce. Uh if you recall we issued a construction loan to them that will be repaid. Uh we did uh recognize some of the financial challenges that they're encountering and we modified that loan agreement. Uh but they are on pace and it is um up to date in their payment schedule. So those funds will be coming back to us back into the program. We also approved three new loans and grants for small businesses. Um and so each of those uh now that it's here in the new year uh they are under construction and they're moving forward. So that's again that's why we use Spark to address a hardship in the financing to get these business investments to happen. Uh from a development perspective, uh the HR has owned that vacant land, the old public work site in Grand View. We've owned it uh for about a dozen years. Uh and this past year we um interviewed a number of prospective developers and buyers, made a recommendation and selected one that we're currently negotiating with. Uh and then the HR chose to transfer that land to the city so that when it is sold, the funds that are raised will not go into the HR budget, but they'll go into the city council budget, which allows the city council much more flexibility in how to use those funds. Now, we're still a year or possibly two, probably 2027 until we actually close on that. But again, we're positioning that site to be redeveloped, sold, and become another productive part of the community. And then in the affordable housing realm, a lot of smaller projects. Um, again, that this year there's there's not a big new building um for the affordable world. Um, but it's it's um keeping what we have, naturally occurring, affordable housing. um is highly coveted in the marketplace. Buyers like to buy it and tra and convert it to luxury or you know market rate. Um and the the H participated in loans to a couple projects to keep them affordable in the long term while they're being rehabbed. We also created that hero second mortgage program uh similar to the come home to a dinina program in a way um uh but revived with a new focus um and some u some no new proceeds there. Also happy to announce that we closed on that first mortgage um at the end of the year. So it's always hard to close on real estate deals at the you know you know during the holiday season uh but the first one was closed and so that that program is up and running and being successful. I'd mentioned the come home to a dinina program. Uh four uh homeowners were provided assistance on that program before the funds ran out. So that program is currently paused and on hiatus due to lack of funding. Um but earlier in the year they were able to to help four families um uh become homeowners. Uh and as you recall, we also talked about affordable housing a lot. Policy and financing is difficult. Um, we've all recognized that and with uh Stephanie Hawinson's leadership, we held three different work sessions to discuss ways of moving forward and accomplishing that goal more effectively. So, that's quite it for a slow year. I think that's quite a bit. Um, I'll run through some of the current construction projects uh in our second section here just as a reminder of where we are. Um I'm not going to go into the any of these in any particular detail. That's not really our our goal here, but just to recognize that there are a number of things happening uh with participation of the HR in different forms. So the first project is the Arcadia office building just west of Highway 100 here. Now that's part of the Grand View District. It's been that site's been talked about for dozens, decades, for quite some time. uh that project is privately financed. Um so there was no financial participation in that, but the work of the HR and a lot of the long-term planning that we've done uh certainly makes that area more desirable. Uh as you recall, the HA funded the roadway improvements in that area. So having updated roads, sidewalks, etc. is also part of what what made the buyers interested because they saw the infrastructure was modern and available. Uh in the bottom uh illustration, that's the Finch Apartments. That's in our Pentagon Park TIFF district right next to the Fred Richards Park. 276 units, 10 of which are affordable. Um uh and that finished early in the summer. Uh and occupancy is going very very well. We do expect to issue a TIFF note. We're still going through all the paperwork. um before the before the HA actually pledges or actually issues a note or provides reimbursement, we go through their books and make sure they did what they said they were going to do. Make sure their financial gap financial gap that they were expecting is actually what happened to make sure that we don't over um you know provide any kind of excessive subsidy or something they don't need. So, we're still in that review process, but we think we'll have that note issued this year in 2026. And on this project, we also used a Spark forgivable loan to fund that public road that was constructed. Uh we had the developer build it to city specs um and uh and provide access to it and we then reimburseed them. So we they finished the road, delivered the the road to our engine engineering department satisfaction. So we have uh issued them those funds. It was $2 million for that road. Um, so we use SparkCC rather than increasing the tax levy or issuing public debt for that. Uh, we just use the funds to get it built and and get it delivered. And then jumping over to France Avenue, I had mentioned those two new buildings at 72nd in France. Um, the the Craftsman office uh is on the corner at Gallagher. That's the one that's further ahead in their progress. They got a a little bit of a head start on compared to the housing. And then the apartment project is at 72nd also under construction there. Uh the HA is uh part participating in the financing of each of these. Um so related to the office, we'll keep uh in communication with the developer. We do expect to issue a tiff note to reimburse them for all their site work. Uh and then they will deliver to us uh public easements to use all those things that we're reimbursing them for. And at the settings um uh we used rather than than uh additional tiff, we used spark money instead. We felt that was a more appropriate, less risky um approach to getting that particular deal done. So we provided uh over $4 million in reimbursement to them uh in order to convert the 10% of affordable units from a 20-year term to permanent. Um, part of the concern of staff is as we've been doing these these projects um and having 10% of the units affordable, that's a limited term affordability uh typically 20 years. And so our concern has been what happens in year 21? We're we potentially lose everything we've worked for. And so uh we negotiated with the developer to make those units permanent in this building. Uh uh they've been living up to their end of the deal. uh and we have reimbursed them for some of their construction costs so far. Um we issued that as a forgivable loan which means they still have to finish the project and wrap everything up in the fashion that they said they would before we give them any consideration of actually forgiving that loan. Um so it's a way to protect the HA's interest and the community's interest. But we're very uh very excited to see those two projects moving especially in a climate where there's not a lot of construction happening right now. And then we have two other active projects. These have been subject of a lot of conversation over the over the years. Um uh the old Macy's furniture site is under contract to enclave development. Uh the H pledged uh to create a tiff district and use tiff on that site. um they continue to pursue financing for that project. They're a little bit behind where they thought they were going to be. Um so they're still working hard uh to get that site fully financed and and start construction. Uh so that's part of the part of the risk of real estate development. They've been working on this since 2023. They've been spending money, a lot of money, uh, entitlements, architects, uh, marketing, the whole thing, uh, for years. And while the H has pledged TIFF, we don't provide them a single dollar until they actually deliver something. So, um, this this one is still on the books. Uh, we hope to see some action, hopefully some fast action here in 2026. But, as I mentioned, the challenge of financing some of these bigger projects, it's really, really challenging. And one of the common factors that we're noticing is if it's a single building, you can get those financed a little bit more easily, but when it's a multiplephase building uh or multiple phase site, it's so much more challenging. Um because in order to get the first phase built, you have to build the roads for everything. And that's where the financing doesn't really work out. So that's another uh situation and reason why the H har steps in to allow the infrastructure to be built. So that's this the um the enclave enclave site. The other one is at 70th in France uh owned by Mortonson and Orion. This is the former US bank site. Similar story there. They've been working on this since 2022. Um real estate development is not easy. Um but it's the same exact story. While the developer has invested a great deal of money, time, and effort to get this project financed, that has not happened yet. Um, uh, we're continuing to have discussions with them about how to get things revived. Uh, uh, there's no easy solution. If there were, it would have been built already. Um, but do expect some conversation on that site this year. Um, we'd been last year we talked talked to them about different ways to get the parking uh structure financed. Um, uh, in the report that I prepared, we never actually ended up speaking about it, but in the report that I issued that was in your packet, I had some serious reservations about that particular strategy. Um, so as we've continued with in dialogue with the develop with the developer, we'll see if there's a way to work together without putting us at risk, without putting the HR at financial risk. Um, I've not sensed any appetite to do that. And um, so we'll see if there's a better way to get something happening there. So, we're not giving up on these, but we're not they're not accomplished yet. And then here's a couple projects where the HR was not involved directly, but they're still on our radar. um major expansion at the Galleria, incredible uh revitalization at Southdale Mall, and then the Southdale Southdale office center just on the west side of France is seeing some renovation. So these are projects that are years in the making. Um they uh in a big way they go back to 2012 when the H created that first TIFF district to encourage Simon to to have Southdale back on their radar and make that a major investment center for them. So this is now phase three of their investment on the property. Uh fully privately financed so no H interaction but I still believe had we not gotten involved back in 2012 that mall would be dead. Um, so, uh, a lot of new, uh, businesses there. Over 50 new businesses at Southdale. Um, Galleria is doing a lot of retenanting as well. Uh, some solid anchors are moving and expanding. Others are shifting and growing. So, if you're a shopper, you'll notice a lot of change in those centers. Um, but from an H perspective, those owners are reinvesting in their properties to make them relevant and competitive, and that's our goal. Um uh the uh year and review document also contains summaries of the programs uh that we pro that we promote here uh under the HR banner. Um not going to go through these in any particular detail. I think that'd be redundant. But let me just say that many of these are provided by the city uh or by the HR. Some of them are provided by partners. For example, for example, Elevate Henipin is a business advising program run by Henipin County. Um, the city and the H thought about doing something similar here on our own. It's just not cost-effective. And so, we partner uh with the county to promote and provide that that service and that program here for Adina businesses and Adina residents. We are um for the second year having some of the programming happen in Adina uh at the offices of the chamber of commerce. I had mentioned that we issued a loan to them to help build out that new space for business advising. And while that organization is not providing the the training themselves, we've partnered with with Henipin to still put that site to good use. And then I'll I'll spend a few minutes talking about tiff tax increment financing. Uh there's a lot of it always a lot of confusion and I take the easy way out and say it's complicated. It is complicated but uh I'm not going to go through it in in finite detail. Um but these are highlights. Um there's more detail in the report. Um but these are maps and graphs that you've seen on a regular basis. The the map shows where uh uh where tiff districts are located in Adina. And then the bar graph shows that compared to our peers and neighbors, Adina uses tax increment financing on a much uh less frequent basis and to a much lower degree than most of our neighbors and peers. Uh we use TIFF strategically. We use it intentionally and we use it to accomplish community goals. The report also summarizes all of the projects where the HR has participated financially. Uh usually we do that by means of a TIFF note which is a pledge, a giant IOU so to speak. Um uh once the project achieves certain milestones, that note begins to acrue interest and becomes payable. Uh and then payments are made twice a year. Uh Miss Hawinson and I review the payment requests and then it works through our finance department to actually get the checks issued. So right now there's seven projects that are completed uh or substantially completed and have earned payments towards their tiff notes. Um so those are summarized here. And then the report also has a a summary of the spark program. Since that's a newer time limited program I provided to break I decided to break that out separately just like I've done the last couple years. Um uh so I had mentioned the the new roadway at the Finch, the setting apartment that's under construction. Um the new um uh basement bar at 50th in France, there was a Spark uh grant for that that's still pending. So that business is now open. That's exciting. It's called NMA Hi-Fi Lounge. Uh was just there last night, actually. And uh uh while the project is complete, I'm still going through the paperwork. So, we haven't issued them any funds yet. I still need to look at their receipts and invoices and those types of things. Um, but the um the big shiny thing that we helped them with was a was a um an elevator, a lift, and um uh that allows that basement area to actually become usable. So, uh as that as that business evolves, we'll see that property uh have a more prominent position on the tax role. Before it was just kind of a basement for boxes and dust. Um, now it'll be an occupiable uh business and one that everyone should check out. And then the three other projects I mentioned, the Americana Restaurant, uh, Coders Clubhouse and JJ's Poke and Noodles. Uh, three new restaurants that are under construction. Uh, or two new restaurants and and then a uh a business for youth training. Uh, those are under construction. Look for those to open later this year. The document also includes a matrix of the public benefits that we deliver with TIFF. Um this chart I'm not going to go through it. Um happy to answer questions but um when we use tiff and adina uh we use tiff to a different standard than is allowed in state law. So state law allows communities to use tiff for a number of different reasons. Uh we use TIFF to accomplish public goals. It's not just a handout to a developer. And so those public goals um are embodied in our comprehensive plan. And those initial 10 goals that I mentioned earlier in the in the meeting this morning um public space, public roads, affordable housing, taxbased growth, employment. And so what I've done is keep track of each of the active tiff districts um and how we're doing on on delivering those public improvements. Um uh the green boxes are projects that are substantially finished and have delivered those those outcomes. The yellow boxes are some of the projects that I mentioned earlier that are pending. 70th in France, the old Macy's site. Uh right now they haven't delivered anything yet until they actually get started. So there's no outcome. Those are pending. Um but we expect those to be delivered. And then um the boxes that are gray that say not applicable or NA um you know not every project is expected to achieve every possible goal under the sun. Um and so uh public roadways are not an expectation of every single project. Affordable housing is not an expectation of every project. So that's why I say NA uh for for that um feature. The report also goes into detail about the taxbased growth. Um, I've split it into two different segments. Redevelopment areas and affordable housing. So again, one of the 10 goals of of the HRA is to grow the long-term tax value of our community. That helps the city, helps the schools, helps the county, helps the taxpayer. Um, so so this is a long game. It's not a short-term accomplishment. and it takes decades to get there. Um, but what we did was summarize the original tax capacity when we created a tiff district versus the current tax capacity. And I'll just go that I'll just use the top two as as examples. At 44th in France, the H provided funding for the Laurent, the apartment building with the retail on the first floor. When we started that property had a tax capacity which is the the the figure used by the assessing department and all the tax people in in the state 29,000. So kind of a random number but 29,000. After that site was redeveloped and transformed it increased 10 times to 300,000. That's the type of investment that we try to pursue with the HA. We don't just want a 10% growth. We don't want a doubling. Frankly, it needs to be transformational. We noticed or not noticed, but we accomplished the same thing at 50th in France. Prior to the construction of Nolan Mains and that new parking garage, um the tax capacity of that corner, uh and these are just like the acre and a half site, not the whole t not the whole business district, but the original number was 57,000. When Nolan Mains was finished, it exploded to almost a million. That's the kind of transformational things we're pursuing for this community. So, I thought it'd be good to document that and show that success. Uh on affordable housing projects, the numbers are similar, but not as aggressive. With affordable housing project, the goal there isn't to just grow the tax base and that type of thing. It's to provide housing for people, families, households, seniors, whatever the the makeup of the of the residents are. So, we do find that when when you build new construction, you always have some growth to the tax base, but it's not going to be as as explosive as you find in redevelopment districts. And it's it that's part of the balance, right? Not every project can be can accomplish every possible goal. And then I thought I'd wrap up just using one project as an example. Um, there's always confusion about TIFF dollars and is it worth it and is it a waste or is it a handout? Um, who's getting hurt, who's getting helped. So, I use one example. It's right across the street from city hall, the old Perkins. Um, and yes, I still do miss my pancakes at Perkins. Um, but that's that was transformed into the Mesa Green Apartments and the Starling Restaurant. What we started doing several years ago was tracking the taxbased value of TIFF projects. Um, it's something, you know, typically a tiff sticker is 25 years. A lot of employees change time over that and no one really pays attention. So, we started paying attention when I started working here. Um, so that site when it was Perkins, uh, the property value was $3 million. It was flat and stagnant for many years. um uh through uh entitlement and having a new owner and having a new vision. When the new buyer bought the site and changed it from a mostly vacant commercial building to a site that was going to be apartments, the value more than doubled to se to just under $7 million. um when they finished the building uh uh it exploded times 10 to $70 million. So from $3 million valuation to 70 million. Um if you're the the uh accountant paying the taxes, uh that's the the second line from the bottom. Uh for many years the taxes that that site generated for the city, the school, the you know the county, the state was about $100,000. And that number had been flat and stagnant for several years. Now I'm glad they paid their taxes. That's very helpful to to the whole to the whole effort. But when the H gets involved, we want to see that tax investment grow. And so in the the first yellow column, uh, after they bought the property and had it reszoned for housing, their tax bill doubled to $200,000. When they finished the project, their tax bill is currently 1.1 million. So we went from several years of stagnation at 100,000 to increase by a factor of 10. So their current tax bill is just under 1.1 million. Um and that gets distributed to the city, the schools, the state, the county, and the tiff district to re to partially reimburse the developer for their expenditures and their investments and then to partially reimburse the city for our investment into building the new roads, the new sidewalks and all that in the area. The very last line, I did break out the taxes that are paid to the school district. Um, that's all that's often a a commonly asked question. Doesn't tiff hurt the schools? How are they going to get their funding for the teachers? So, it's a similar story there. Um, for several years, the school district um recognized about $19,000 in tax revenue from the site. Again, flat and stagnant, but $19,000. When they transformed that from a mostly vacant commercial to a residential site, that tax bill more than doubled to $40,000. And when they built the building, the taxes that are now paid to the school district jumped from $19,000 to $155,000. So that's why I I would some people say that, you know, tiff hurts schools. Um the school is getting far more revenue from the from the site, even when it's currently in a tiff district, than they ever did. And so um that's a unique provision in Minnesota state law. um the tiff laws have evol have evolved for over 50 years and at some point in that period I don't know exactly when uh they made some changes to make sure that the that the schools were um able to receive more revenue during the tiff district and then when the tiff district is over all the um obligations are paid for the roads paid for the developers note is finished that full value currently you know over a million dollars that will then go into the kitty, so to speak, for the city, the school, and the county, and everybody else. So, so I just wanted to end with that one example. I think it's a very relevant example. Um, it's recent. You can walk outside and look at it. You can drive on the new roads and walk on the new sidewalks. Um, and these are some of the numbers behind it that that made it possible. So, um, that's where I'll wrap it up, but the, uh, the doc the full document will be posted on the city website. Um and uh uh as we consider an up an update to that document for next year, if there's additional information you find helpful, let me know. We can certainly include consider that for next year's report. And with that, Mr. Mr. Chair, I'll turn it back to you. >> Good. Any uh questions or comments for managerf? Yes, commissioner. >> Um so, thank you very much for this overview. I think this is really helpful and I I appreciate the um transparency that it uh provides. I've got a couple of questions. Um, one on slide seven when we're talking about the Arcadia and the Finch. So, um, with the Arcadia that is in the Grand View, um, TIFF area, can you tell us how the taxes where the tax dollars for this site, even though we didn't grant a TA TIFF note to them, it's in a TIFF district. Can you tell us how the tax dollars are going to be distributed? >> Yeah, sure. Um, so this site we we excluded from the tiff district. So this uh we considered including it. I think we drew those boundaries in 2013 or 2014. We considered it but at that time it wasn't ready. Um and the developer the owner had no interest in selling it at that at that point. So we intentionally excluded it from a tiff district. when this site started to go through the redevelopment process, the the developers did reach out and ask to see if they could use TIFF to help finance it. Um, we had a very brief discussion because because it became apparent that they could privately finance it. Why would we get involved if they if a bank's going to do it? So, um, so right now when that project uh well today and when it's finished uh that is that site is fully taxable. Um uh as you recall, commercial buildings are subject to fiscal disparities. So um 40% of the taxes from a commercial building leave Adina and go to the fiscal disparities pool. Um that's part of the Minnesota state law from the from the early 70s, late60s. Um but there's no tiff on this in any form. >> Okay. Terrific. Thank you. And then at the Finch, uh, part of that is a public road. And refresh my memory, isn't that the road that's going to be the new entrance to the Fred Richards Park? >> That's correct. That's correct. Yeah. So, the that road will be built in two phases. Um, the portion on the developer original land is finished, but right now that road deadends at the Fred Richards Park. So, as the city does our park improvements, we will connect to that existing road that's now finished. But yes, that roadway, it is the main entrance to the park. It's also the entrance to the to the Finch parking garage and the adjacent parking lot for the office building. So, it serves multiple purposes, but that is its purpose. >> And so, when the Fred Richards Park is redeveloped, um the sign will be big and and the public will have that access because right now it's really hard to get in there if you don't know where it is. you wander around a lot, but it'll be a new entrance right on 77th with a big city vina park sign. Correct. >> It'll definitely be a big entrance. I'm not the signage person. I Okay. Yeah. But all right. >> Yeah. As a city council and as engineering staff, we'll make sure that there's a sign that gets people to where they're going. So, um, the city council and the planning commission are going to be working on a new comprehensive plan and part of that will be looking at the Southdale guidelines and the Southdale plan. Um, with these two projects at uh, the former Macy site and then at 70th in France, this issue of financing um, is a complication I think that was not envisioned when the Southdale plan was uh, written. Do you think that we'll I'd like to charge you with um connecting the disc the planning discussion about the Southdale plan with some sort of um financing um experts or uh resources um because I think that was not envisioned how difficult it would be to actually do these public improvements. Um, now that we've got a couple experiences under our belt, they're not built, but we we have some real life experience. Um, I personally would like to see our HR experience folded into the planning experience when we're reviewing the comprehensive plan. Um, so that's just an an idea to put out there. >> Sure. Yeah, thanks. I I'll certainly be involved when the comprehensive plan is is updated. >> Great. Thank you. And then this is actually a question for manager Hawinson um about the heroes program and come home to Edina. Um there's been some questions about who is eligible for these second mortgages. Um could you tell us a little bit about what the eligibility is for a heroes program loan and um how we determined that. >> Um so background and they could work wherever they just want to their home. With the heroes program, you have to work within the city limits. So that is um a narrowing down from the come home to Edina that you can't work in Richfield or Bloomington or Minneapolis or anywhere else. You have to so they have to prove um part of the application process is their proof of employment and where they are employed where they are physically located for work and it has to be within the city boundaries. >> Okay. Thank you. >> And then then it's with the education system, health system or public employee. >> Okay. Great. Thank you. Um and can you um tell us a little bit more about the income eligibility? >> Um I don't have the parameters right now. It is um guided and controlled by the funding source. So it's around $103,000 for um a household. Um and we do look at their tax returns, pay stubs. We look at investment and asset income. We the the application package is fairly robust. Um and there are we do check for income caps and this is part of the um uh income or um we look at area median income and this is I think uh like 110% of area median income or something but it's it's to um it does have an affordability aspect to it. This we're not giving these out to wealthy people. It's looking at the value of homes in our city and and the some it's tied um anchored by our area median income at some level, isn't it? >> It is tied by TIFF statute and what the incomes are allowed by TIFF statute. That is not necessarily tied to the local area median income, but the limiting factor is income. And the um the statute does not limit the cost of the home. The income of a homeowner naturally limits the cost of the home. >> Okay. But it is tied to affordability and helping to people to live in our town that who otherwise wouldn't be able to. >> Exactly. That is exactly it. And so the loan allows for folks to leverage more home that um reflects the costs of homes in Edina. Okay. Thank you. >> Other questions, comments at this point in time? Member Risser, Commissioner Risser. >> Um thank you. I would like to build on what Commissioner Jackson just said and actually I brought in this page that is from the Southdale design guidelines and I don't know if we could put that up there but um I too am really concerned about some of the elements that are in our comprehensive plan that may be stying development instead of making it flow more economically. And when I look at this, and I have been staring at this for quite a while, the area that is circled um represents the site of the Henipin County, the new Henipin County Library. And if you go back and you listen to the planning commission when they're reviewing that site plan, they're very that generally is a um kind of negative conversation about the library proposal. And it is really influenced heavily by these guidelines and the takeaway was sort of we'd rather see you split this site up into four and you know put in housing. And I think we, you know, looking at this and I I really did appreciate how um director Newondorf started with 1977 and the goals and how they're still applicable and there's broad appeal. And I thought um this vision to put a grid over the greater Southdale area to me at least is not necessarily aging particularly well. And when we look at what developers have proposed, um, and I have talked to people who were more engaged in the process. Admittedly, I was not going to those meetings when we were talking about this, but one of the questions that came up was who's going to pay for the roads? And what I've learned is the idea was PUD will be used to reszone. the benefits that the developer gets through PUB will offset the costs of putting in that infrastructure and everything will flow really well. And I've tried to find out more about financing roads. If it's a city road, a city um project, you've got to have that money in your CIP is my understanding. But I think as we look at development and we look at how you know people are really spending a lot of time a lot of energy and it's it's not working and then also this is from 2018 so some things have already happened and Southdale is a a diamond not a square and so the developments that have happened restoration hardware um the Shake Shack the hotel all of those um respond logically to what is there what Victor Grun created. Um, and so it's it's not necessarily a logical pathway forward. And I really think we need to look at the plan and think about, you know, possibly removing it or at least having that debate when we talk about the new comprehensive plan. So, um, thank you. >> All right, Commissioner. >> Well, yeah, just for the record, I don't oppose the Southdale plan. I don't want to be lumped together with that. I think it's a it was a wonderful community effort that took two and a half years to put together. I just think we can learn from our experience and and I want to just make that clear. Thank you, >> Mr. Pierce. Thanks, Mr. Chair. So, I I have a um a TIFF question. Um, and so if you could I think you could probably use 9.1 um to answer this question. Um, so the um I I definitely definitely um align with the fact that we're using TIFF and creating enormous tax capacity. Well, I do want to just clarify the the way this slide and I think um 18 is the same way. Um we're showing if you take 44th in France, the original tax capacity in 2019 and then the current tax capacity, the district is 20 or 25 years. And so when I when I read this, it kind of implies to me that that additional capacity is usable in six years if I'm doing the math. So, um can you just explain um and you kind of talked about this on slide 10 with um some of that that additional capacity is going to the schools before that TIFF district has been descertified. That's kind of how I'm interpreting this, but I don't think that's the way you mean this because the 50th in France would be the same way. uh you're showing seven years later an enormous tax capacity increase from 2017 and I don't think that's what you're implying. So the bigger question is if you could talk through the process of when that additional capacity um actually flows back to the general fund or the other sources other than staying in the district. Does that make sense? >> Uh it does. Um yes. Um and you're right that is not what I'm implying or what I'm intending. So um uh let me stick on on this slide for a moment. Um so the connection the correlation that you're making is not a correlation. Um I'll stick to the 44th in France example. So there's couple goals here. One is grow the tax base long-term grow the tax base. That's what we're trying to illustrate here. Uh so we've acco accomplished that at 44th in France. um the tax base grew by a factor of 10x. Um uh unless a tornado takes that building out next summer, that tax base growth is is there. Um different question is where what are the tax dollars? Not the tax base, but the actual how much is the check written for the actual dollars. How much is that and where does it go? So let me jump to slide 10 for that one. Um this is a different project but it's the same concept. Um, so on this comparison, I simplified this to dollars that I simplified this in a manner that we I think more people can understand because tax capacity is just one measure that the state auditor looks at and the state assessor or the the county assessor looks at. But most of us as taxpayers, we don't get into the weeds of exactly how was my tax bill calculated. So I simplified it here. Um so if we use this as an example, uh this is the Eden Wilson. And if we go with the second line or from the bottom, uh for several years when it was Sila Perkins, uh after they had relocated the uh the regional office, they paid about $100,000 in taxes every year. Uh the tax capacity was low, the tax base was low, the tax level, $100,000 is still the significant tax bill, but it was low. Um when they uh finished the building now, their tax bill is a million a million one. So right now most of that probably 700 stays within the district to pay for the developer note and to and to pay off the roads in lie of issuing issuing city debt with with you know going back to the levy. We issued debt saying we're going to use the tiff to pay to build that road. So this particular district is a 25-year district. So, um, working with with Ellers, uh, you know, while state law gives us 25 years, we always try to get it paid for in less than that. Um, I can't tell you exactly what that I can't predict the future to that degree. Um, but let's say that it takes the full length, the full term, 25 years. That means um that this growth in the taxes that are paid will be uh retained in that district for that full amount. And then in year 26, then that's when it goes to the full back to all the government agencies, city, county, schools. So it is while it's a while it's a big taxbased growth, that growth is not fully recognized until after the tiff district is descertified. Uh at 44th in France, that was a 15-year district. When we did Southdale, that was an eight-year district. This particular one is a 25-year district. So as we uh as we go through the process of analyzing the financial needs, we always aim for the shortest period that's practical. Um this particular one 25 years was practical. The other one 15 years 15 years was practical. >> So that it gets very confusing. Um uh uh so I hope that is responsive to your question. >> Yeah, that's okay. >> That's exactly um my question. Um, and it is I think in totality it's complicated, but you did a great job of explaining that. Um, I don't think anybody can argue against the fact that the use of tip exponentially increases the tax capacity. Right? That's u that's very clear um in every project. You can see that. Um my challenge is how can we um in the way that we structure those districts, so the strategy around it moving forward. Um how can we be um I guess I'll say creative in allowing that tax capacity to be utilized within the community sooner. And so I appreciate you saying um there there's I didn't know we had a district that was an eight-year. That's the first time I've um um I think that's the first time I've heard that. Um and so the I think being creative and trying to figure out as we uh continue the use of this tool um how we can accelerate that uh beyond 20 or 25 years um would is great. Um, so thank you for uh clarifying that. >> Thanks. Other comments, questions? Yes, Commissioner Commissioner Agno. >> Thank you and thank you for the presentation. I I just I don't have any specific questions. I think my um fellow um commissioners asked some really great questions, but I appreciate um all of the clarity that you bring to a lot of these projects. I think that these are all um ones that I think are really important for our community. And so it's just great to have this annual summary that I know we do every year. Um but it's great to be reminded of the value that we're adding to the community. So thank you. I would just reinforce the comments of my colleagues that um I think we appreciate as a council when you come with a notion of uh using tax increment increment financing as a as a development tool that it's for a public benefit that it's judiciously used and that when you look at your data uh that it represents uh I think probably around 10% of our projects some 1.6% 6% of our tax base. So, um I think all of those things are really important to all of us and important to our residents as well. And um when you think about the good question that Commissioner Pierce raised that that analysis of the use of that increment compared to the organic growth or the otherwise remodeled property, whatever it might be, you know, that improves that property. Is it worth the wait? is the patience, you know, to have that patience to wait the the length of the life of the tiff district to capture that significant increase in value. That's kind of the heart of the analysis, I think, for for all of us. At least it is for me. So, thanks for that update. Appreciate it. And you you keep going. >> Sure thing. Well, let's jump to the next one. Um so the next item is a is looking forwards to 2026. So, um, uh, so no big decisions required at all this morning, but, uh, as Stephanie Hawinson and I were were kind of plotting out the work plan for the year and figuring out when things fit and when is the best time or when is the the not a not a great time. We wanted to put some things on your radar just so we don't s surprise you in the future. So, this year there's a number of projects and discussions that we're anticipating to help us achieve our goals better. Um, so on the policy side, um, there's, uh, three things that are on our radar. If there's other things that you want to talk about, please let us know. If there's something that's a higher priority or a lower priority, let us know. Uh, we work to pursue the the the aims of the city as guided by you. So, we're here to uh hear you to hear your direction. But from a policy level, uh, we'd like to consider and have a discussion at least about the idea of possibly creating an economic development authority to supplement the work of the H. Those are two different types of, uh, legal entities embodied in state law. Um, uh, and when we conclude the meeting, um, I have Nick Anhut from Ellers here that is going to give us a quickformational about what's an EDA, what's an HR, what's the difference, and is it helpful? Um, again, no big decisions at all, but that's that's um that's something that we think we should have at least a conversation about. Um, last year we started a conversation about the use of tax increment financing, our policy, how it's embodied. Um, and we never actually finished that discussion. So, um, we'd love to get that slotted into a conversation this year, uh, so we can finish the the conversation. And then the uh this the multifamily affordable housing policy. Uh this dates back to 2015. It's been updated a number of times, but it hasn't been updated for a few years. And uh as we look at the ongoing challenges to finance affordable housing, uh we wanted to have a discussion that starts here at the HA would get finished at a city council level. Um but since it's since housing is embedded into the HR, we wanted to start the conversation here. So, those are three policy discussions that we will uh try to fit into the calendar over the next several months. Um uh if there's one that's more important or higher priority to you, please let us know. And then from a project perspective, um as we look into the crystal ball, there's seven projects or programs that we see uh uh becoming relevant this year. Uh and these are in no particular order. Um, but we talked about the corner at 70th in France. Um, uh, that site has has sat since 2022. Uh, we're glad the the bank got relocated. That was the first step to allow anything to happen. So, we're really glad that they're in a new beautiful space, but we really need to re-engage the owners and get something happening there. um they are soon going to be at a point where they need to decide do they stick with a plan that they you know that's been approved for several years or do they crumple it up and start from scratch. They're not at that point yet but they're getting to that point and we want something developed. We want something good to happen there. So expect some conversation about that. Uh we're going to monitor the progress at the other sites on France Avenue. The craftsmen and the setting apartments right now those are under construction. We're going to just kind of sit back and let those finish. And then uh I'm in frequent conversation with the developers at Enclave about the old Macy's site. Right now, we're just waiting for them to get to the closing date to acquire the real estate. And so right now, we're just monitoring that one as well. The deal has already been been done. Um uh uh but as far as the financial markets, I mean, things are still a whirlwind out there. So, we'll keep our eye on that one and report back. Pentagon Village. We've made some good progress, but there's still two vacant sites at Pentagon Village. Lot two, the old hotel or the what was supposed to be a hotel. Uh that's still mired in a lawsuit. So, until that lawsuit is resolved, I don't think much is going to happen there. And then lot five was supposed to be the big corporate headquarters. Well, it's hard to build corporate headquarters these days. Um so we'll continue to um promote development on that site um and report back the old public works site on Eden Avenue. Uh the H to some degree will continue to get involved in that. Um as we right now the city council uh soon will will talk about um uh entering into a purchase agreement. So once that's on its path, that becomes more of a city council conversation. But still, as a H, you know, we just transferred it. We've been working on it for a dozen years. We're still involved to some degree. We don't expect financing uh with this group of folks. We think they can get it done privately. Uh and then another vacant site that we have uh tangible interest in uh is the is the other half of the site that we bought for the new fire station. Um we the city bought an 8 acre site. The fire department needed about 3 to four acres. So the second half of that site was intended for redevelopment. Um we started some conversations in the past year. We hope to finish that conversation and get something to to to begin to happen. Uh right now the site's vacant. It's not hurting anybody, but it's not also helping anything either. Um, and then with that Spark program, uh, I am seeking, uh, new businesses that need assistance to get to get, uh, to their construction phase on that one. Uh, for the Spark program, I'm going to give it about six months. Um, if, uh, if we don't identify businesses that need the investment by June or July, I think we're going to wind down the program. Um, so I'll report back on that one. And then uh Stephanie is working on a new program to promote um energy efficiency in affordable housing. So uh you know the rent, the mortgage is one thing, but you still have to pay the electric bill and the heat bill and the water bill. Um so she's working on a program to see if there's a way to to to bring some of those regular costs in line. Um so those are the seven things that we're expecting to work on. um in this business there's probably another four things that we don't expect that are going to just come flying at us at some point this year. So um thanks for your patience with some of those surprises. But uh you know if we see progress on half of these it will be a full year. So I just wanted to put them on your radar and certainly if you have any questions or priorities or things we missed happy to talk offline or or any time about that. But Mr. Chair, that's all I have for this one. Did that prompt anything with respect to uh looking forward in 2026 comments? All right. I know we've got a limited amount of time remaining. We got a an important topic to discuss here. >> All right. >> Appreciate Mr. Anut being here this morning. >> Yeah. So, for this one, I'll just do a really quick introduction. So, we had a little bit of time this morning, so I thought we'd take advantage since we're all here. Um uh I I mentioned the idea of an economic development authority to supplement the work of a redevelopment authority. Um one of the key things that well an HR as the name implies focuses on housing and redevelopment. Uh an economic development authority can do the same things and more. Um so one thing where an H is limited is business attraction and business retention. So, as an economic development professional, vacant space is my worst enemy. We want full office buildings, full retail centers, um, uh, you know, open space, parks, that's all good, but vacant lots are are what I want to get rid of. Um, and when it comes to business attraction and retention, that's not really within the the the the scope of an HRA. It's definitely within the scope of an EDA. So, um, that's why we're even having the conversation. Again, we just wanted to introduce the subject this morning. I thought, uh, Nick Anut would be the best person to give a brief intro brief in introduction and show you some examples of how other cities do it. Uh, and the one thing that that I've learned in the several years in in this role is there's no singular correct way and there's really no wrong way. As long as you follow one of the one of the options that's embodied in state law, you're good. Um, but it g there's some option to consider. So, I'll turn it over turn it over to Mr. Anut and he'll run through the presentation. >> Yeah. Thank you, >> Mr. Anut. Welcome. >> Hey, happy 2026. Thank you for having me. Uh Nick Anne Hut with Ellers and Associates, financial adviser to the city and the HA. Um good to be before you this morning. I many of these topics you've already discussed kind of at Nauseium this morning. So I'm going to skip ahead. I don't know if we have any timing constraints that I need to be aware of, but please let me know if if we need to hurry this along. So there are multiple forms of organization structures that are available to cities across the state to be able to provide financial incentives, financial tools to help develop and redevelop your community. As Bill mentioned, historically the city of Edina has established an HR and used uh its powers under the authority granted by statute. Uh but there are other authorities that are available as well. So the topic today is on economic development authorities. There are also port authorities that have been established uh throughout the state. Those are specifically enacted by special legislation. So the legislature gave a specific city this one authority, one-time authority to create an entity like that. Uh but there are numerous such entities and they're embodied in the statute. There are also communities that don't use these tools. So just just kind of be aware of of the broad spectrum that are available um under the state law. Um, but typically a community is going to use what aligns with its primary focus areas and targeted activities. Historically, Adina, it's been housing and redevelopment. We've been successful in doing that. Um, helped facilitate many different projects. uh 50th in France development in the 1970s, Edinburghough, Centennial Lakes, the Grand View area, uh more recently now Southdale as as Bill mentioned in the Simon development, Pentagon Park and and many others, all the tiff districts that were mentioned in the previous uh presentation. um focus again on renewal efforts and housing development and primarily housing for low and moderate income uh households within the community providing opportunities uh for them to uh seek that housing at a lower cost. Um and the HA administers uh the city's tax increment financing districts or uses those tools to help facilitate those efforts. Um, nothing changes in TIFF relative to whether it's used by an EDA or whe whether it's used by an HR. You still need to make the same findings. It still needs to be the projects that would qualify for that specific tool. Um, but uh, an EDA can use TIFF identically to how an HA uses TIFF. I think the main change with an EDA is some of the other powers that that we'll talk on here. Um, city council serves as the HA board of commissioners. So it is an independent uh body. We have separate meetings, regular meetings available to the public. Um the HA appoints an executive director, holds those regular public meetings, um approves the fi the financing. Um and the transparency related to those funds. So um that is how it it operates currently under the HA board. Um and then I I mentioned the historical activities. The HRA has city-wide taxing authority um is able to adopt an HR levy that applies to the entirety of the city of Edina and that that provides a funding source that can be used in furtherance of the HAS's efforts in housing and redevelopment activities. Um it is subject to the local budgeting process and needs to be uh transparent under the truth and taxation process that applies to all taxing jurisdictions across the state. um and requires annual city council approval. Um however, where those funds can be used um are a little bit more limited than than citywide. So for housing e efforts, that money um and broadly speaking, the HA activity can support housing efforts across uh the full uh spectrum of the city. But if we're talking about uh redevelopment activities, there is actually an area of operation. and it's called a project area that has been adopted within the city. So the HA went through a public hearing process, consulted the planning commission and designated the Southeast Edina redevelopment project area, this area that's in uh the green outline um covers roughly half of the city and targeted that specific area for where the HR would would take its redevelopment actions. Right. Um this does not preclude the ability to expand that area in the future. there's just a public process to be able to do that. Um and u this has worked historically because that is a a section of the city that um is primarily dealing with these uh redevelopment activities. Uh the remainder of the city is majority of it is you know primarily residential neighborhoods that that aren't seeing that kind of development. Not to say that it might not happen in the future. Um but again HA has established this area with within which it would operate and use its funds. Generally speaking, we've already kind of talked about how you use the HA in the previous uh discussion. So, I'll I'll move ahead in the interest of time, but you can carry out the various activities that are enumerated in statute um and have done so. Now, getting on to an EDA. What is an EDA? Well, essentially, it's a it's a similar format um a a another structure that can be used by Minnesota cities. just came a little bit later in the evolution for what the legislature granted cities to be able to do. I think there was, you know, I wasn't a part of those discussions back in the 1980s, but you know, HRA act preceded this established the ability for cities to use an HRA uh inherent in the in the city um before this. And then I think they came to realize that maybe those powers were a little bit too limiting for some of the things that cities wanted to do particularly when it comes to the items that Bill mentioned uh business development uh business retention job growth economic expansion and those activities. And so the legislature gave the ability now to create this new entity the EDA if a city wanted to. Um it needs to go through a process to do so but um it could establish that. Additionally, it actually gave a city, if they did create an EDA, the ability to transfer all the authorities and powers and duties of the HR to that body as well. So they could basically inherit and then continue on in those efforts. Um so again, legislature it evolves things are not necessarily uh you know clean. Uh they didn't go back retroactively and say, "Hey, all Has can now do these things." They actually wanted there to be a more forthright process that a city would have to go through if it did want to create this new body. Um, it doesn't mean that it has to be one body. They can be separate. You can have an HA and an EDA. You can have an HA and EDA and technically, I guess, a port authority, but I'm not aware of anybody that does that. Um but again the focus is creating this this body that could potentially uh expand its efforts into more business development activities. That does provide the ability to use that uh general funding source for a little bit more broad um flexibility on on loan programs um and uh land acquisition or property acquisition. um how you can um the objective of buying property and potentially selling it for purposes of business development instead of having to rely on the primary objective being redeveloping the site would be the difference. Um EDAs also can act as a limited partner involved in a in an entity. So that that is one other difference uh to be aware of. Doesn't mean that you have to but it does have that power to do so. Um and as I mentioned the you know if if the city council does allow it when they establish u an EDA they are able to transfer all of the powers that are available under the HR act to that body as well um or restrict it if they want. Um the process involves adopting an enabling resolution. So, this this has a public hearing component, but essentially the city council approves an enabling resolution that designates what specific powers they want to uh grant and uh how the uh EDA would operate within the community. Uh establishes the governance, sets the various limits that the city wants to impose on that body. So, just because it's in the statute doesn't mean that you want to necessarily use it uh in alignment with your policy objectives. So, it allows the city to put some guard rails in place and and maybe not a all or nothing approach. Um, and that enabling resolution, as I mentioned, can transfer control and authority of any HR projects over to the EDA if it's desired. Uh, the EDA act does require um that you set governance. It could be a board of commissioners, could be uh designated as a three, five, or seven member body subject to the city council's approval. Uh it could be exactly the same uh as as what you do right now where the board of commissioners is five uh city council members uh or you could uh appoint um other individuals to supplement that body. A minimum at least of one in a three member body needs to be a member of the city council or a minimum of two if you're using a five or seven uh member body. Um, but that's subject to the the city that's establishing the EDA to set those governance procedures. And then the EDA once it's formulated, they adopt a set of bylaws, policies, and and all the things that you know you are familiar with as as an HA, the things that you do as well. There's selection of officers, an annual report, all of those types of things. Same budgeting process and the like. uh we've kind of touched on this broadly speaking but you know the common EDA activities that um would be available beyond the HAS's scope you know again focus on taxbased expansion and job creation activities uh uh within the community for business development and retention. Um they're able to, you know, fund and administer studies, buy property, provide financial assistance, negotiate with developers in order to achieve those objectives that are beyond just housing, beyond just redevelopment, but uh more broadly speaking to support uh business expansion within the community. Um it does have to do so within a targeted area just like an HR. So, as I mentioned, that that project area, the Southeast Edina redevelopment project area, the EDA would have to establish a similar type of project area for where it wanted to um target these activities within the community. It could be specific neighborhoods, it could be an individual property, it could be the entirety of the city. It's up to the city and the EDA's discretion on how to proceed and what works best for that community. Um but then I think to what Bill wants to actually talk about is the ability to really jumpstart and create some new business assistance programs that you know examples being like um you know certain cities have been able to um either buy existing property or even fund and build new development that can serve as a business incubator and actually lease out that space uh to try to grow and enhance uh small businesses so that they can uh have a place to to grow their business and then potentially um leave and and buy a larger piece of property or develop a expand their business elsewhere within the community. Um there's some other forms of uh technical assistance programs that are administered using EDA funds to help uh for business expansion, growth, retention, and things like that. um as well as um you know facilitating marketing efforts to uh to market the city of Edina more broadly to try to attract new business investment uh business engagement and actually go out you know nationwide or internationally to try to uh uh convince um you know investment within the city of Edina for the purposes of these goals. Uh, primarily EDAS are funded either through city transfers of general fund dollars or they do have the same ability as an HR to um to levy funds specifically for the EDA's needs. It has to go through that same process, truth and taxation approval by the city council uh within its budgeting process uh every year and the amount of that levy is capped based on a you know percentage calculation uh on the size of the tax base that that you all represent. That is very similar actually to the HR. Um it's just a I don't know why it's a different percentage. Um but um you know it's it's still that uh 0185 for an HRA instead of uh 01813 for an EDA. They also can be separate, right? So there are actually some communities if they do have an HA and an EDA, they can levy both of those things. They segregate the dollars. The dollars can only be spent on, you know, the EDA levy can only be spent on EDA activities. H levy can only be spent on HA activities. But they're not um you know they're they're not combined together under that limitation. They can be separate levies. Um and there is actually a process to increase the EDA levy beyond that percentage threshold if so desired. I don't think that's something that the city of Edina is necessarily interested in, but um it is there is a process, you know, if you did have a need to go through a public hearing and petition process in order to increase that percentage if it was ever necessary. Um, one thing I would note, and I don't think we're trying to move very quickly here in the city if you did want to pursue this, but you do have to let the county know by July 1st if you actually are going to impose a new EDA levy. Um, and and so any kind of formation would have to happen before that date if you wanted to actually have it be in effect for 2027. That doesn't mean that, you know, that's something that you want to do. I just want to point that out. does require there is a little bit of a lag and uh obviously there would be a very deliberative process here in the city of Edine if we were going to do this. Um and then the last point there um the EDA can administer tiff districts. It can inherit the h's tiff districts. Um there is no change in the type of tiff districts that you would be able to pursue. Um an EDA, even though you know it's it's not specifically assigned uh housing and redevelopment, an EDA can establish a housing tiff district as long as it meets the requirements in within the statute for a housing tiff district. Um and as I as I mentioned because the EDA can serve um and be granted the powers of an HRA if by the city. Uh some examples um so you know Edina has used an HA only. It's worked very well for you. Um similarly in the cities of Plymouth, Lakeville, Hopkins. These are just other examples for you to be aware of. Um there are cases um where there are HAs that may have been established and then they transition to an EDA at some point within their history um where and they've transferred all of the authority of the HR to the the new EDA. Uh that would be the case for St. Louis Park, Brooklyn Park, Minnotonka, Burnsville. They do administer under that type of authority. And then there are others that have multiple, right? So they might have they have a an EDA board. Um it could be the same as the HA board or it could be two separate the membership could be the same of the boards not the same board but two different boards with the same members or they could be two different boards with separate members. So the example primarily I would look at would be Bloomington. So they did get special legislation to establish a port authority within the city of Bloomington. They they operate under that. Uh and then they have a completely separate body uh board, completely separate people appointed by the city to serve as an HRA to focus primarily on housing efforts within the community. And sometimes those bodies, you know, they work together as well. Um Woodbury has has EDA and HA. I think it's the same council members that serve on the bodies of those entities as well. Richfield also has um an EDA and HA separate membership. Um, in addition to that, some communities also have uh advisory commissions that serve beneath that. Same way that you use a planning commission. Um some communities have housing commissions or a specific economic development commission where they will appoint members from you know the the city that might have uh some acumen or or some interest in in pursuing specifically you know economic development activities and they rely and consult with those advisory bodies um on a limited basis. Usually those advisory bodies don't have any decision-making authority, but they can provide recommendations and and you know do some of the the background work to help the governing body um in formulating you know the goals and objectives of the community and how they want to pursue development. So I think I fit this in before the 9:00 hour, but I'm I'm happy to address any questions you might have. Again, we're just planting a seed and making you aware of the different tools that are available. um and look forward to furthering dis discussion with you throughout the year. >> All right. Thank you, Mr. Anut. Let me ask if any of my fellow commissioners have questions for Mr. Anut or comments. Commissioner Jackson. >> Um thank you very much. That was uh helpful to to break that out. Um just a brief question. What does Eden Prairie have? >> Oh boy. I think it's just Well, I'm I'm sure they probably Well, it's an HA. What I don't know is if that HR has somehow um adopted the guidelines of an EDA, but they kept the name the HR. So that that's one thing I just want to clarify. >> Okay. Thank you. >> Mr. Nundorf, come back up. What is it about this potential model you find intriguing in in terms of the work you've been doing for for us under the EDA model? Sure. or into the H model. >> Sure. So the um I think the HA has been highly successful in redevelopment uh and pretty successful in housing. Housing is really difficult. Um one thing we learned during the pandemic years was that um strong business communities, strong local economies sometimes need a push from the city. And if you're a business that wants to invest, not redevelop, not tear your building down and build a new one, but just reinvest in that building. Um, that's where we ran out of options, ran out of tools. And so, prior to the pandemic, that was there. I was never involved in conversations about that. After the pandemic, I heard from so many businesses that needed some kind of help and uh, not necessarily handout. It could be a loan, could be just better promotion of the community. So, those are the kind of things where um you know, I I can do a little bit of promotion, I can do a little bit of attraction, um just some staff time, but I really can't spend or put real dollars to make a difference. And so, that's a tool that I think would be helpful to have a stronger local economy. And right now, that tool is not really available to us. So, that's what intrigues me about the EDA. Commissioner Jackson and Commissioner Brisser. >> So, one of the discussions in the community is about the use of TIFF and your previous presentations showed how we look at big jumps. Um there are people who like why do we need a big jump? If we had the ability to help existing businesses and everything, would we see um do you anticipate that that would slow down the transformative um nature of development in our city and and have it more um protection and enhancement of existing businesses as opposed to the transformational change? Do you how would how would an EDA and the powers of the EDA um affect that mix? >> Sure. I still think there'd be a balance. Um, if we created an an EDA, I don't think we'd want to stop redevelopment. Um, uh, you know, just looking at inflationary costs, looking at, um, community expectations, the expenses incurred by the city and HA are going to continue to increase. The only way to keep taxes reasonable for the whole group is to have a stronger tax base. So, I still think we do need some big transformational improvements. Um, plus frankly, I mean, there are some properties where they were great in 1970. It's 2026. They are not top of the pile anymore. Um, but I think there needs to be a balance. Um, I look at the business industrial park west of Highway 100, uh, north of 494, uh, near where the where the city's new public works facility is. That's an area where I don't know if it needs transformational change. I don't think the market is ready for transformational change there. Um but some businesses have a hard time doing business because they're they have some basic fundamental needs. That area is pretty old. And so um that's an that's a region where I thought where I think some um additional economic development activities could be helpful. Um but not I see it as a way to supplement the work of the HR, not to replace the work of the HR. Commissioner Richer, >> thank you and thank you for the information. My concern is the timing on this because you know we are moving toward redoing our comprehensive plan and it seems as I just think about this um there'd be a logic in waiting until after that has been complete. We're also working on zoning and um you know I look at the way projects have moved forward and I did catch a little bit of the planning commission meeting last night. We have moved forward with projects, you know, and I'm thinking about that industrial area near the fire station. We have one business that was allowed to move forward as a warehouse and a retail, the drooling moose. it got um I'm not really sure how that was approved, but it um really made me think that that whole area needs to be looked at very carefully and we need to figure out what is the direction it needs to go in terms of what is allowable use. And I could see a model of warehouse retail being permitted throughout that space. So it's not just one entity that has that ability. Um and that was sort of driven home by the Salvation Army um discussion. But a larger point is sometimes we permit an entity to do something and then we don't go back and make sure that we have zoning that is more broadspread you know and we did that with Americana and with the parking variance and we didn't we haven't to my knowledge I don't know if we're rewriting that ordinance but I think we need to clean things up in terms of our zoning Before we start moving forward with more revenue generating things, I do want to say I really like the idea of focusing shifting gears here on new multif family affordable housing policy. Um, and that would be for me what I would think would be the most pressing thing in terms of the anticipated policy discussions. So, thank you. >> Commissioner Pierce, >> if I go ahead could respond just briefly. Um uh I agree that there is a correlation a connection to the comprehensive plan. Um we also want to be careful zoning discussions those kinds of things should stay in the realm of the city council. The ED neither an EDA or an H has zoning powers. Um but they're definitely connected. Um the reason that I wanted to start this conversation in 2026 is that it usually usually takes two to three years to actually implement a new entity like this. Um you know there's no urgency. we don't have to do it tomorrow. So, it takes time. We want to do it the right way. But if we want to if we want to implement the next comprehensive plan, we need to have this kind of government governance conversation beginning this year. So, they're definitely connected. Thanks for bringing that up, >> Mr. Pierce. Uh, thanks, Mr. Chair. So, I I think my my questions and comments are just more from a practical perspective. Um, there's definitely overlap between HR and EDA. Um, I can't fathom why we would have two bodies that have the exact same makeup either. Um, so I some of the cities have the city council on both HR and EDA that I'm sure it makes sense for them, but from a practical standpoint, I'm not quite sure I understand that. Um, and so in those two comments, I think it would be um smart for us to have that deeper conversation on what's the scope of EDA and HR, right? Um and then the second one I think um I am intrigued by having an EDA that I think would allow us to have more business leaders be a part of it. Um and so that's kind of a question I guess not to be answered today. Um but um I guess the the one question would be um not for today understanding how um people are added to the EDA right so I think understand those two things what's the scope that we want to focus on um how are people um other than city council members appointed um interviewed what have you because I would be intrigued to to have a separate body that could focus on that more narrow scope and allow us to have a couple of uh um local business leaders to add that additional expertise um um to making some of those decisions. So, as we go forward, those would be two of the things I suggest we kind of look at. No response required today. >> Executive Director Neil, >> just very I have a response uh just but it's brief. >> Please thank you. >> When I worked in Northfield in the mid to late 90s, they had both a well they had a city council of course and they had a separate H and a separate EDA all populated by different people. I would not recommend that structure. Um, what I saw happen there was, and I think they would affirm this, is that those individual entities, the EDA and the HA, began to have their own values, their own strategies, and they would often be in conflict with the council because they were, uh, they viewed themselves as being an equal and but separate kind of organization. Um, so that was complicated. Eden Prairie's system when I worked there, uh, was very much like ours, right? There's the the council served as the HRA. Uh they toggled between meetings very quickly there. Didn't have separate meetings like we do here. Um but that was more akin to what Adina does. I >> I think uh manager Nondorf you've uh you've got our curiosity up a bit understanding that this is just uh touching on the idea of what this might look like. So to the points that been ra the points that have been raised here I think especially by commissioner Pierce how these uh organizations are populated uh like the EDA model with H powers in Minnotonka and Burnsville. How are they populated? I know I've had conversations with mayors of Bloomington over the years about the Bloomington Port Authority. I think that's maybe a combination of elected and non-elected people. you know, understanding more about it would be important and and and going to the next step of uh giving us some further education would be valuable too, I think. So, I think are we all comfortable starting that process of evaluation? Yeah. Okay. Thank you. And Ranger Neil, did uh you've got you had one other item on here understanding that it's 909. Yeah, I I we can >> there's no discussion. >> Yeah, we don't have to have any discussion on that. We can just bring that to the next >> okay >> meeting. But I did have one item in addition to that >> a staffing uh item. Um for the past seven years, Liz Olsson has been the the staff support uh for the HA. Uh she has moved on uh as of yesterday, right? Was yesterday was her last day. So we are planning to fill that position. Um, and we'll keep you updated as we make progress doing that. >> Right. Very good. Uh, anybody have comments? Okay. Just just quickly, I would I would just say that and, uh, Council Member Pierce uh, sent me an email yesterday, I think, about um, ICE activity and some of the groups that were meeting around the area, I think, including faith community people. And I just wanted to advise people that we had a meeting of eight mayors here last Friday noon. And we yesterday we had a meeting of 15 mayors, city managers and uh police chiefs in Eden Prairie on this interreationship between local governments and ICE related activity. I it I just came away with a kind of vexed by the idea of what what we can do when you think about constitutionality related issues when you think about their policy related issues. I I don't know where to start from a local government standpoint yet about how to how to start to address some of these concerns that we have. And so to the extent that any of you and we're getting correspondence from our residents about what are you going to do and we released that statement in uh in in December about what we are how we interact with ICE. I think we probably need to do that again and maybe tighten it up a little bit, but I think people want to know what we're doing. No one knows that we've been in some of these meetings, for example, and trying to figure out a pathway here. So, I can't tell you I I've had any epiphany about where to go next, but to the extent any of you have ideas, I'd love to hear them. Um, the only thing I've come away with so far is getting a bunch of mayors to not send an article to the Star Tribune, but to let's send a letter to the president of United States and see we can implore him on a higher level. You know, if we can tamp down one of the concerns of mayors is that the rhetoric is getting pretty amped up. the governor goes to three and as mayor busy says and then the and then the president goes to eight you know there's it's really tough so I think mayors are thinking about trying to lower the temperature take the high road uh we put a letter together that I'm going to circulate again to these 15 mayors today to see if we can send it to uh the president to see if we can get anywhere with him on them make ICE making sure that they're doing their work in a constitutional manner and that we can get them to modify their policies relative to what their activities are from ICE around schools, around religious uh houses of worship and around medical facilities um would be really helpful I think but we'll we'll see where all of it goes and so let me know if you got ideas and member council or commissioner >> the only um thought I had was to expand it and also include our senators and um representatives. >> Yeah. And we had yesterday we had a representative from Kelly Morrison's office there. >> Okay. >> She circulated a form that residents can use and she just sent an email while we were in this meeting >> and I forwarded it on to manager Neil and Jennifer Benerrod. Uh there's a form that if if you want to engage the congressional office, there has to be a form filled out that allows them to interact with Department of Homeland Security. So I think if we can get that up on the website some way somehow and and along with maybe part of that message that came from her staff uh that that will be helpful. So to your point, member RER. Okay. Um I think that's it. Is there a motion to adjurnn? >> So moved. >> Second. >> We got a motion by Commissioner Jackson, second by Commissioner Pierce to adjourn the meeting of the HR this um what day is it? 15th day of January. halfway through the longest month, what seems like the longest month of the year, uh, at 9:13 a.m. Any further discussion? All those in favor of adjournment of the H say I. >> I. Opposed. Carried. >> H stands adjourned.