[0:10] Here [0:25] we go. Well, good morning everybody. It is Thursday, August 14th, 2025, 7:32 a.m. [0:34] And this is the meeting of the housing redevelopment authority uh for the city of Vina. And we've got an interesting [0:41] agenda today. And um as you all may know, we've been continuing uh COVID [0:47] postcoavid doing these meetings in a hybrid fashion. People can watch online and call in if there are opportunities. [0:54] There's always the opportunity during community comment to call in. Uh and sometimes we have public hearings, none [1:00] of that activity today. Um and then uh we'll also have folks in the audience that may wish to address the HR on [1:08] matters of concern to them. So having called uh provided that information, let me call the meeting to order and ask [1:14] Scott Neil, our executive director, to call the role. Thank you, Mr. Chair. Commissioner Risser [1:20] here. Commissioner Jackson here. Commissioner Pierce here. Commissioner Agnu here. [1:25] Chair Hubland here. also here. Um, next is the pledge of allegiance. [1:33] I pledge algiance to the flag of the United States of America and to the [1:38] republic for which it stands, one nation under God, indivisible, with liberty and [1:45] justice for all. Thanks everyone. [1:51] And we've got a meeting agenda. Is there anyone on the HR that wishes to modify [1:56] the meeting agenda? Any staff? Okay. Is there move a motion to approve the meeting agenda as published? [2:02] So moved. Second. Mr. Jackson moves. Commissioner Pierce seconds the adoption of the meeting agenda is published. Any further [2:09] discussion? All those in favor of adoption of the meeting agenda is published say I. I. I. Opposed. Carried. [2:16] The meeting agenda is published as adopted. Uh the next is community comment. Is there anyone in the audience [2:23] who wishes to address the U har and a matter of concern to them? [2:30] Seeing no one coming forward and hearing nothing, uh, let's check online. I don't have anyone on the line just [2:36] yet, but because there is a brief delay in the broadcast, I'd recommend we wait about a minute before moving on with the [2:42] agenda. That gives people the time to call in if they'd like. My clock shows that it's 7:35. I'll come back to you at [2:50] 7:36 or when I have a caller, whichever is first. Thank you. [4:05] It is now 7:36 and I still don't have a caller, so I think it's safe for you to move forward with the agenda. All right. Very good. Our executive [4:12] director usually responds to community comments made in the prior meeting. Anything to report there? [4:18] No, nothing to report today. All right. Thank you. Next up is the consent agenda. There's a few items on the consent agenda, including several [4:25] sets of minutes uh and a resolution authorizing the transfer of property uh at the old public works site to the city [4:32] from the HA. Uh is there anyone who wishes to remove anything from the H [4:37] agenda? Okay. Is there a motion to adopt the items on the or excuse me on the [4:42] consent agenda? Is there anyone who wishes to um move the adoption of the items on the consent agenda in a single [4:48] motion? So moved. Second. Commissioner Jackson moves. Commissioner Pierce seconds the adoption of the items [4:55] on the consent agenda. Uh anything further on that? Any further discussion? All those in favor of adopt [5:01] them adoption of the items on the consent agenda in the single motion say I. I. I opposed carried. [5:08] Uh those items are approved and adopted. And now we're going to move to items that are off the consent agenda. Uh we [5:15] have some reports and recommendations and some actions to take this morning and our economic development manager [5:21] Bill Nuendorf uh will be leading the way on these presentations. It's a continuing discussion with respect to [5:28] the former public works site uh on Eden Avenue and um uh he's been meeting with [5:35] our um selected development team and I think we're going to report on that and one of the members of that development [5:41] team is here as well. Manager Newendondorf. [5:48] Yes. Good morning. Thank you. Uh I have several items here for you this morning, but we'll start uh with a with a pretty [5:54] significant one. Um uh for many years, we've been looking at redeveloping that [6:00] public work site um that's been vacant over on Eden Avenue. Um, and throughout [6:06] this year, as you're well aware, we've had several conversations uh with different development groups um who are [6:12] interested in that site. Um, today we we'd like to uh take the step of [6:18] actually identifying and recommending the development team that would take the next uh that that would be given the [6:25] opportunity to purchase and redevelop that site. Um, so this is a two-step [6:30] process. uh in your consent agenda, you just um transferred the ownership of the of the land from the HR to the city. So, [6:38] at next week's city council meeting, they will accept that transfer. Um [6:43] uh and then it'll be the city that formally enters into a contract with the [6:48] development team for the site. But the HR as an H, you've been talking about uh [6:54] the opportunities, the goals, uh and the types of teams that could accomplish those goals. And so we'll be we'll be [7:01] looking for your recommendation to identify that team and that's what we're prepared to do this morning. [7:07] So we're well aware of the threeacre site uh just west of Highway 100 and [7:13] behind Jerry's Foods. Earlier this year, we received proposals from 11 different [7:18] development teams. um uh and we invited five of those to come in at our previous [7:24] HR meeting in July and make their formal proposal and their formal presentations. [7:30] Now, this group of 11 had a wide variety of different types of projects. They were all um responsive to what we'd [7:38] asked for in the request for for proposals earlier this spring, but they all offered a very different solution to [7:44] some of the challenges and goals that you had had identified. So the types of projects included senior cooperatives, [7:51] town homes, row houses, condominiums, senior apartments, kind of general [7:57] purpose all age apartments, professional office building, um commercial space, uh [8:02] and the price points were also varied. Um uh everything from mixed income [8:08] housing to luxury, traditional market rate, affordably priced, attainably [8:13] priced, kind of that middle pricing. Um, so we had quite a variety to choose from, which which is no surprise. This [8:19] site has been a good location for for for quite some time. The the offers of [8:25] land purchase price ranged from uh over a million dollars to nearly 6 million. [8:32] And the type of density that was uh uh proposed on the site also had quite a [8:37] range from about 20 units an acre to just slightly over 70 units an acre. all [8:43] of which are well within the limits of our comprehensive plan. So, as a as a [8:49] body discussing the potential sale of real estate, we've often talked about the outcomes on the property. Um, so [8:56] while the purchase price is a factor, it's not the only factor. It's also the type of project and the type of [9:02] community goals that could be achieved. Several years ago, the city identified [9:08] uh pillars and values to to to be used as we make major decisions about expenditures or in this case revenues [9:15] coming in. Um and so we strive to to [9:20] take each of those uh values and fundamental pillars into consideration as we weigh the various uh options [9:28] available to us. So some of the most important um goals [9:33] were uh compatibility with the vision for the site. Um the vision that was expressed by the HA um and that vision [9:40] was informed by our comprehensive plan. The Grand View development framework. There's been lots of planning and discussion on the site. We wanted to be [9:48] respectful of that recognizing that some of the initial plans started over 10 [9:53] years ago and some of the things that were on our wish list back in 2011 just [9:58] are not not possible in 2025. Uh we looked at the estimated land value [10:04] that that purchase price was important to us. Um, we looked at the community impact, uh, the fiscal impact, the [10:11] overall contribution that a new project on the site could make to the broader community and to that immediate [10:17] neighborhood. We also looked at the ability of the developers to close the deal. Um, [10:23] uh, it's really important that we get beyond a contract, but actually get to a sale and then new construction. Um, so [10:31] closing the deal was also a very important factor. So throughout your conversations um we [10:37] took a lot of we took all of all of those into consideration and early on back in I think January we had an [10:44] initial conversation about balance right there's there's no perfect project where [10:49] we knew that we wouldn't be able to secure every single goal in one project but it's a balance of what we can [10:55] actually accomplish and then what are some of those areas that we're willing to compromise on. Um and so uh uh as [11:03] we've gone through those conversations uh at our last uh close session meeting there was a lot of uh conversation about [11:10] th those last five presenters. Uh and when we left that meeting you provided [11:15] direction for me to to do additional research and have start having some conversations with a team comprised of [11:22] Hemple real estate, Monarch Development Partners, Jester Concepts and ROOS [11:28] adviserss. I've met with them uh twice in the last couple of weeks to get the conversation starting uh started. Uh we [11:36] find that they still are very interested in the site. They're ready, willing, and able to start moving forward. [11:43] Uh the concept that they have in mind um is missing middle scale forale housing. [11:51] So, town homes, condominiums, and commercial space all arranged in a [11:56] manner that creates a walkable neighborhood with some outdoor public spaces where the general public can [12:02] enjoy those areas, but fun fundamentally putting the property back on the tax roles and uh [12:09] rather than building a a site that maximize the density and maximize the size and scale, really strive to get [12:16] more of that middle uh that missing middle type of scale. The project would be primarily market [12:22] rate as far as its sales price. Uh but per city policy, 10% of the units would [12:28] be priced for sale to be affordable to families earning um I believe it's 80% [12:34] AMI. So that that's the concept. There's still a long way to go um from one very [12:40] simple picture and site plan. they uh once they're they're named, we'll be working on a on a formal contract uh to [12:48] solidify a lot of the terms and responsibilities of both the buyer and the seller. Uh and then they'll be then [12:55] then they'll be able to begin the city's typical development review process. So, expect a sketch plan submittal to the [13:02] planning commission and to the city council. Reszonings, site plan approvals, there's still a long way to [13:07] go and a lot of public input that still has to be uh secured. Um but this morning we're ready to uh to [13:16] follow through on the on the discussion that we had. Uh as we know in close session we're not able to make any [13:22] formal decisions. Um but it is acceptable to provide staff some direction to talk to one party over the [13:28] other. Um so I want to forward it to the to the end. Um [13:35] uh and so with that in mind, I'd be looking for your um discussion and your direction to formally uh recognize this [13:43] development team. Um we do have a representative from the team here this morning. Bill Cater with Hemple Real [13:48] Estate uh a veteran in the real estate uh industry um is here this morning with [13:55] us to answer questions if any. Um, but we'd be seeking your recommendation uh [14:00] to identify this team as the preferred developer and then start preparing a contract to bring to the city council. [14:06] And with that, Chair, I'll turn it back to you. Yes. Thank you, Mr. Newondorf. Uh, colleagues, questions for Mr. Newondorf, [14:14] Commissioner Jackson. Yes. Thank you, Mr. Chair. So, I want to thank everybody who put in a submission. [14:20] Um, they were all very interesting and there were a lot of elements in each one that was was excellent. Um I have a [14:27] question for you uh Mr. Nounorf about the um affordable units. They're for [14:32] sale. Do we have as a city um the mechanism to make sure that those are affordable into the future? So someone [14:39] buys it at an affordable rate but then sells it at market. Is there a way to prevent that? There is. Yes. It it's these days it's [14:46] rare for affordable condominiums to be built or affordable town homes. But if you recall, um, uh, Enclave Development [14:54] and Lifestyle Communities have a condominium building in that site, um, [14:59] where Macy's Furniture Gallery is. So, in those agreements, we've already established a legal framework to lock in [15:05] the initial purchase price and then the subsequent prices into the future. So, we would follow that model. Um, the [15:13] state-of-the-art of legal contracts is always evolving, so it probably won't be identical to that. Um but it'll be the [15:19] next iteration of that and we're confident that we can secure that type of outcome. Okay. Thank you. And I just want to say [15:25] with this um group of developer or partners in this development when I was [15:31] scoring it um there like I said each submission had something really [15:37] interesting and really compelling but this one overall just kept scoring higher than the others in every way I [15:43] looked at it. And so that's I I just wanted to let the public know how I made my decision looking at all the factors [15:48] we'd put in that RFP and that we articulated as an HA. Um this one consistently scored the highest. [15:57] Yeah. Thanks, Commissioner. And thanks for recognizing all of the companies that applied that were interested in [16:03] this site and and manager Nundorf, you did a great job of showing the breadth [16:08] of possibilities here and um landing on this particular group was a was a was a [16:15] process and a difficult one, especially I think when we got down to the last three. So this is just something to be [16:21] thinking about and and I'm sure you'd be talking to Mr. Kendall about it too. But as we as we move down this pathway with [16:28] this development team and I think I anticipate the H recognized them this morning but [16:35] uh the the notion of in its simple form how do we tie [16:40] uh the purchase to the product delivery because there's a regulatory process involved in all of this. So, how do we [16:47] weave our way to a result where we get the project that we want uh and uh we [16:53] get the funding that we expect the sale of the property, but the buyer gets the the land. How do we navigate that? [17:02] That's that's a great question and that's part of the the main part of the reason why we had all the real estate [17:08] conversations sitting as the HA. We really try to bifocate those two responsibilities of regulatory, land [17:15] use, zoning, landscaping, design, all those types of things. Try try to keep that in one bucket under the city [17:22] council. But as the HR, that's where we really focus on more of the program and [17:27] the and the financial outcomes. So, in our in our uh uh close conversations, we [17:34] didn't talk a lot about trees or how wide is the sidewalk or where's the bike rack or what's the [17:40] right density and is the you know is what's the right F. We didn't get into those kind of conversations as an HR. We [17:47] really focused on the price, the ability ability to finish it and get it done and [17:52] the general concept. But sitting as a city council, that's where we'll enter into the contract to secure the price [17:59] and the timing, but then still work with our H with our planning commission and go through that full regulatory review [18:05] process. So um both uh both strategy or both goals can be [18:12] achieved uh that way and Mr. Kendall and his staff has have helped us with this [18:17] in the past and they'll they'll work us work through it with us again this time. Yeah. And what strikes me that you know [18:22] I mean this morning we authorized the transfer of the property uh to the city. [18:28] So now the city has the property and the city has the regulatory function. So maybe it's a timing issue. Maybe we [18:35] don't want to really transfer that property. I mean we can do it anytime we want. But if you if you want the HRA [18:42] uh to decide what the timing is for selling that property based on what occurs from a regulatory standpoint, we [18:49] might want to be careful about how we do that because it it strikes me that you could get in some awkward spots from a [18:56] from a legal standpoint and and and you know or if the property stayed with the [19:02] HA, there could be some sort of a contingent purchase agreement contingent on the city approving a plan that they [19:08] had advanced or some acceptable variation thereof. [19:14] But I you know it just it just struck me as look I looked at all this and thought about transferring that property now. Do [19:20] we really want to put the city in a position where it's both the regulator and the land owner and deciding when we're going to transfer the property. [19:26] Maybe it's fine. I don't know. But just give it some thought because we got some time here to to think about that. [19:32] We'll talk about that with legal and go through the process. Okay. Okay. because over we're not we're [19:38] not authorizing the sale to I'll call it the Hemple Group today. We're just we're [19:43] just following your recommendation that uh we continue to work with them towards that end. Correct. And we'd anticipate bringing a [19:50] formal contract together uh probably late September is where we're aiming. [19:55] Okay. Okay. And I want to make sure they get what they expect for a project too [20:01] before they agree to buy it. I mean, there's a it's a two-headed coin. So, all right. [20:09] Um, so we got a we've got a uh that caused anybody else to think about [20:14] things they wanted to ask? Yes, Commissioner Risser. Um just briefly, it um I do want to acknowledge and it's [20:20] kind of too bad, you know, some of the things that we said were behind closed doors because I do really think this [20:26] design took into account um the challenges of the site and there were [20:31] many there are many and so I do want to just publicly acknowledge that I was impressed by that. [20:38] Thank you. Um, all right. We the staff is recommending a motion that would recognize the development team [20:44] consisting of Hemple Real Estate, Monarch Development, Jester Concepts, and Roast Advisers as the recommended [20:50] development team to to potentially purchase and redevelop the vacant property of owned by the [20:58] owned by the I'll call it broadly the city located at 5146 Eden Avenue and authorize staff to prepare a sales [21:04] agreement uh for future consideration. Is there a motion to that effect? So moved. [21:10] Second. Mr. Jackson moves. Commissioner Pierce seconds the motion as stated. Any further discussion with regard to the [21:16] motion as stated? All right. All those in favor of adoption of the motion as stated, say I. I. I. Opposed. Carried. The motion is [21:23] adopted. Thank you, manorf. And you've got the next matter as well. [21:44] Yes. And this next one is uh in the same general area but completely unrelated. [21:50] So, this is resolution 2025-05, and it's seeking an interfund loan uh to [21:58] help with the financing of the big Highway 100 interchange Vernon Road project that's actively underway. If you [22:06] drove or walked or somehow got here this morning, congratulations. Um it's a little bit messy and dusty right now. [22:14] Um, so, uh, this is a city-led project where the city is working in conjunction [22:19] with Henipin County and Mindot to reconstruct multiple bridges along Vernon and 50th Street um, over Highway [22:27] 100. Our engineering department has put together quite a list of various funding [22:33] sources uh, including uh, primarily funds from Henipin County and from MDOT and state funding. Um, but a lot of it [22:39] is is local funding as well. It's a very big project. Um and uh fortunately we [22:45] are in a in a position where uh the HRA has a fund uh called the Centennial [22:51] Lakes Fund that has some monies available to help fi provide uh financing for that project. [22:59] So this is an image of the project that we're actively building. Um a reminder [23:05] that this site is immediately next to our Eden Wilson TIFF district. Uh and uh [23:11] last summer we rebuilt 50th and Graange and Eden uh using funds from the Eden [23:17] Wilson TIFF district. So then and that's part of the reason why we're why we're recommending this [23:24] strategy. Um many years ago back in 1988, [23:29] the city set up the Centennial Lakes TIF District and it a lot has happened since [23:35] 1988. um uh both physically as well as in in state legislation. [23:42] Uh but when that tiff district closed, it accomplished many goals and still had [23:48] some monies that were left available. Uh the state law back in that time allowed [23:53] the city to retain those monies for future public improvements. Um and over [23:59] the years the uh as the the legislation changed the city adopted a modern B [24:05] boundary shown in green on this map uh whereby those funds could be directed to [24:12] public projects and public efforts not just at Centennial Lakes Park um or the [24:17] surrounding properties by Centennial Lakes but primarily throughout most of the commercial districts in Adina. So [24:24] over the years, these funds have been used to support uh new sidewalks, new inter [24:31] intersections, street lights, um additional studies. Uh it was a uh [24:37] served as a fund to really advance the the city's infrastructure. [24:42] So what we're recommending this morning is uh to help complete the financing for [24:48] this big bridge project is to tap into that fund. Um, we have two options. We [24:54] could just provide a direct payment, but we're recommending that we do an interfund loan uh and and direct those [25:00] funds into the Eden Wilson TIF District. That way uh when the Eden Wilson project [25:06] uh uh continues to pay its taxes over the next 25 26 years and beyond uh [25:13] there's an there's a possible opportunity to repay that inter fund loan and then in essence recycle those [25:21] infrastructure dollars. Uh now there's no guarantee of repayment. I can't guarantee what the tax situation looks [25:27] like 25 years from now, but we'd like to set up this opportunity. um for [25:33] potential repayment. So in that existing fund, there's just under $2 million [25:38] available. So we're recommending a loan uh at one one a.5 million. Uh the loan [25:45] would would uh garner interest at 4% annually and repayment is possible but [25:52] not guaranteed. So this that's why we call it an interfund loan. just amongst oursel, but we're really recommending [25:58] this strategy um to to set up conditions where we can really replenish that [26:04] infrastructure fund. It's been very helpful for the last 20 years. We're hoping 20 years from now, your [26:11] predecessors might also find a helpful source for public work. Uh so with that [26:16] description, Mr. Chair, I'll turn it back to you, but we certainly recommend approval of this resolution. I think you [26:22] meant our successors, not our predecessors. Oh, sorry. Yes. I don't think any of us are going to be [26:27] around 25 years. So, good catch. Yeah. Commissioner Rer, um I'm a little confused by this. What I [26:35] would like to know is I was thinking that money would help pay down the debt [26:41] that will be generated for the bridge project and there would be less of a, [26:49] you know, long-term burden basically on the general fund. But when I see this, [26:55] I'm kind of feeling like that benefit really won't necessarily be there. it'll [27:00] just go to another debt. Can you explain it? [27:06] Sure. Sure. So, um, you were right on the first part of your comments. So, [27:11] this $1.5 million will directly be deposited into the fund into the bridge [27:17] cost. So, rather than going and borrowing another million half dollars and paying market interest, um, we will [27:26] not have to do that. So we we won't have to the amount of debt we issue for the bridge is lesser impact on the le on the [27:33] tax levy is lesser impact on the taxpayer is reduced. Um uh so that that [27:39] is all accurate. What we're setting up though is that in the future if we wish [27:44] we can repay ourselves into the Centennial Lakes Fund out of monies that [27:50] are collected from the Mesa Green project. Um right now that project has been online for just over a year. It's [27:57] performing very well. We expect it to perform well in the future. Um and so by [28:03] structuring this as an interfund loan, we have the possibility of repaying ourselves [28:09] um to recycle those monies. But for the for the immediate project, your uh [28:15] statement is is exactly correct where we're we're less reliant on the private [28:20] sector to issue debt on the bridge. [28:25] I think Commissioner RER's point is well taken. We what we did in a prior meeting was authorize the certain level of [28:32] borrowing. And so what this does is cause us to go to the markets with a lower level of [28:38] potential borrowing. That's right. depending on what we see for rates. Correct. Which is what I think we we all [28:44] sort of anticipated was kind of baked into this. Um but it was a good question. [28:49] I have one question. Yeah. Commissioner Pierce. Thanks, Mr. Chair. Uh can you um explain [28:56] a little bit more detail when you say we could possibly pay ourselves back? You use the one example of the time horizon. [29:04] Um is that the only factor? Are there other factors that we might choose not to pay ourselves back? [29:13] Um I would I would hope if monies are available we would pay ourselves back. Okay. Yeah. So that is the intent. [29:19] That that is our intention. A good example uh uh and Mr. Chair you you [29:24] would have the best recollection of this one. We we took the same strategy back in 2011 when we provided a $5 million [29:32] loan from the Centennial Lakes Fund to Southdale. We really wanted to get that [29:39] Simon Properties to redo that mall and really start getting it back on their radar and actually investing in it, [29:45] which as you can see has happened quite successfully. So that initial $5 million [29:50] investment to Simon, we borrowed from ourselves. Rather than going to a bank, [29:55] rather than going and issuing public debt and increasing the tax levy, we tapped into the Cent Centennial Lakes [30:02] Fund, uh borrowed it from ourselves and then paid ourselves back. Um so that's [30:07] that's the best example that I can think of. Mr. vers. Um, so just thinking about the mechanics [30:13] of this, um, when I'm looking at the actual wording, uh, that we're being [30:20] asked to approve, there isn't language about repaying. And so I'm just want [30:25] confirmation that that would be a decision that future bodies would have the power to vote on and accept or [30:33] reject. I my intention was to modify the language slightly. I noticed the same thing. So after it says authorizing a [30:41] transfer, I think I'd interline authorizing a loan and transfer. [30:48] I'm comfortable with the way it is. If it means that the decision to do the [30:54] repayment, I mean because we don't know what the future and I really do appreciate Commissioner Pierce's [31:00] I think we have to we're the body that has to decide if we're going to lend it or give it, right? We can't be a subsequent council [31:07] or H that decides that because that's all over then. So, we've either got to [31:12] lend it or give it now. So, I just think that that language should include wording that makes it clear we're [31:18] authorizing a loan and transfer of funds. Commissioner Jackson. Um, thank you, Mr. Chair. So, the terms [31:27] of the loan could say it's forgivable, right? Um, so that's so we could loan it [31:34] and then not have it paid back. So I think that's a future decision. So [31:40] definitely make it a loan. My question is um if we are depending on TIFF funds [31:47] from Eden Wilson to pay it back, will authorizing this loan extend the time [31:52] period that that TIF is open? So, if everything else is paid back and the [31:58] time period has not expired, we would close the tiff district presumably. Um, but if we add this $ 1.5 million loan, [32:05] will that extend that time? Um, [32:11] yes and no. So, the the resolution um in section two it uh it section 2.02 02 it [32:19] does clearly identify that principal and interest payments on the loan are due annually when funds are available. So if [32:28] funds are not available there would not be a repayment. Um but if funds are a are available um this would be recorded [32:36] as a debt on the books of the Eden Wilson district. So um right now that [32:42] district runs for 25 years. At year 26 it stops. So we would not be able to to [32:48] to increase the time there. But if something [32:53] unforeseen would were to happen and uh we pay down the other tiff deaths early, [33:00] we would not be able to close that district until we decide whether or not to to settle up on this loan or to [33:05] forgive it. Um so it uh it wouldn't extend would not extend it past 25 years, but it would be recorded as a [33:12] debt obligation of that tiff district. Okay. And does the resolution that we're [33:18] potentially approving have language that it would be a it could be potentially a forgivable loan? I don't recall that it [33:25] uses the word forgivable, but in the payment section uh section 2.02 02. [33:33] Um the language that it uses does say the [33:39] um that the loan shall be repaid on the first payment date on which the HR has [33:45] available tax increment. Um [34:00] there it says the H in 2.06 may amend the terms of the interfund loan at any time. [34:06] Right. Yep. 2.06. Yes. Including a deter a determination to forgive the outsaling [34:11] outstanding balance. So it does give the HR that option. So, is there a way to put a tickler in [34:18] that um when this time occurs that our future um our [34:23] successors um uh are looking at this that they'll [34:28] know that this is an option um that we made this decision in 2025. Um now it's 2040 [34:36] and the loans everything else is repaid and this is the only loan outstanding then they could make that decision. [34:44] Uh we could certainly add language. Um I don't know if that's necessary. You have a full finance department that monitors [34:52] debts and loans. We report uh annually to the state auditor our debts and [34:57] loans. We work with an annual accountant and auditor on on our revenues and and expenses. And you have a full staff that [35:04] looks at this. Uh, also the first meeting of in of the year according to the H bylaws asks you to look at all [35:12] outstanding matters and make a decision if if necessary. So I think we've got [35:17] belt suspender and maybe another couple belts already. We could certainly add more, but I don't know if that's [35:22] necessary. Yeah, I I don't if I don't think it's worth the time to table this, change it, [35:28] and bring it back. Um, but it's just something I want to make sure that it's on it does stay on the radar so that [35:34] future uh councils or HRs have the option of doing that. As Mr. Nunorf noted, there are several [35:39] interactions that we have to have annually with the state and and others about this the status of the various [35:44] districts that we have here. So, it never really leaves the field of vision for the people that are in these [35:50] positions right now or or our successors. Right. Okay. Terrific. Thank you. Put it on the 25-y year tickler system. [35:57] Yeah. Commissioner RER. And then I just want to verify there's no penalty for paying this down. [36:04] Correct. Okay. Yep. It clearly say that. It clearly states that. I think it's 2.05 states [36:09] that. Good questions. Anyone else? Okay. Um, is there a motion [36:16] to approve resolution 20250 authorizing a loan and transfer of funds from the [36:23] Centennial Lakes TIF District TIFF fund to the Eden Wilson TIF District and [36:28] authorization to use those funds for the construction of public improvements on the adjacent roadways and bridge over [36:35] trunk highway 100. So moved. Second. Mr. Jackson moves. Commissioner Agnes seconds. The motion is stated. Uh, any [36:42] further discussion? All those in favor of adoption of the motion as stated say I. I I opposed. Carried. The motion uh is [36:50] approved. Resolution 20250 is approved as as moved. Okay. And now we've got a [36:58] conversation again, Mr. Nounorf, about potentially amending redevelopment agreements with the Dina Enclave LLC and [37:05] Lifestyle Communities LLC at the uh former Macy's site. Yes. Yes. Thank you. So, um, uh, I [37:14] mentioned this project a little bit earlier. So, uh, last November, uh, the [37:20] HA and the city approved redevelopment agreements with Enclave development and [37:25] lifestyle communities for the, um, for the Macy's furniture site located at [37:32] 7235 France. So, the um uh this photo [37:37] was taken last summer, but if you go out there today, it pretty much looks identical. Um might be a little bit more [37:43] dust on on this on the driveway this year. Uh this is a big project, right? And it [37:49] took almost three years for the developer to go from concept and early [37:55] discussions through the planning to get work on the financing. Um and with these [38:00] big projects, amendments are pretty typical. Um, so this is our first amendment. Um, for a project of this [38:08] scale, I would not be surprised to have a second amendment, maybe even a third. I don't know when or what those that [38:13] content will be, but that's just our experience. When you've got these big projects in multiple phases, amendments [38:18] are pretty pretty typical. Um, so the amendment today is pretty [38:23] limited in in its scope. Uh, essentially, we're really just focusing on the timing. Uh initially um the [38:32] developer developer contract with Macy's retail was that the developer was going [38:37] to purchase the land last Janu last January and then lease it back to Macy's [38:42] while they ran the furniture store um and then eventually terminated the lease [38:47] when they when they vacated and it was getting very complicated. What they did instead was redo that purchase contract [38:55] to essentially say we'll purchase the property when you vacate rather than do all that leasing arrangement. [39:02] Um and so earlier this spring in in May uh late Macy's did move their furniture [39:08] furniture operations into Southdale Center. So since the end of May, first week in June, I believe uh that property [39:15] has been vacant. So, the developer and Macy's um are now looking at early September is the closing date. Um the uh [39:24] the project is the same. The developers are the same. So, that's all the same, but it's a 9-month delay from the time [39:32] that we first initially thought the developer was going to purchase the the site. So all of the dates in our [39:39] redevelopment agreements presume that they purchased the land in January when in reality they're not going to purchase [39:45] it until September. So while the deal is the same, what's changed? Um [39:53] uh what's changed is that everything all the dates are pushed back nine months. So, in your packet, there's three [40:00] amendments uh that have the same content, except what's new is there's a table that shows anticipated start dates [40:08] and required completion dates. We've added nine months to all the dates from [40:13] what was originally approved last November. Um, so with that, uh, with the approval [40:20] of that amendment, the developer can get back on track so that when they close in September, their tiff agreement is still [40:27] valid with dates that work. Um, they can secure their financing. Um, their [40:32] intention, and uh, Patrick Brahma from Enclave is here with us this morning if you have any questions for him. But [40:38] their intention is to take down the land uh purchase it in September, [40:43] begin moving forward uh to develop the site this fall or winter uh and then [40:48] most likely likely they would serve as master developer and start doing the utility work, the internal roadway work [40:56] so that they can create those three paths that will then be individually constructed on their own schedule. Uh, [41:03] one of one of the things they've learned uh, in the last nine months as they've really started to focus on how you build [41:10] all this is that um, it just adds to the whole financing cost if you don't move [41:17] the utilities first if you don't put the curb and gutter in first and the storm [41:23] water tanks. Um, so that's their intention is to do all that initial site work up front, create those pads, and [41:30] then pull individual building permits for each of those uh four buildings in the future. So that's the uh that's the [41:38] the background, the rationale for the amendment. Um uh we're happy to bring [41:43] this forward. We've uh I've been in communication with the developers on at least a monthly basis. Uh sometimes a [41:50] daily basis as as things come and go and and little issues arise and get and get [41:56] settled. Um but we're excited to continue the m momentum on this site. Uh we're very excited that Macy's relocated [42:03] into Southdale. Right. That's an great business. We like having them here. Uh we think strong Southdale is a stronger [42:10] Southdale with that furniture store uh assembled there, but we're also very excited to see this site be repurposed [42:17] and redeveloped. Um and so with that background, we certainly recommend that these amendments be approved. And Mr. [42:24] Chair, I'm happy to stand for any other questions. Good questions for manager, [42:30] excuse me, manager newf. Commissioner Risser [42:35] um can you go to the image that shows economic benefits in your chart? [42:44] Now, this has come up with other ones and I have sort of been wondering how do we figure out the estimated market value [42:50] and I I did go look at Henipin County and this property for 2025 is having an [42:58] estimated market value of 15 million and over the course of the tiff district, [43:03] you know, I'm kind of thinking that's kind of a big change or or [43:10] differential. I mean, it could be meaningful for, you know, some money to have, but can you just comment on why [43:17] that's so much lower than what Henipin County has? Sure. Yeah, great question. Um, so in [43:24] this presentation, every slide is from last November except for the one that I recommended we [43:30] change the the calendar. So, I did not redo all the all the projections. So, in [43:37] 2024, the market value was 12.1. it has increased just based on market [43:42] conditions this year. So certainly um uh you know that's uh [43:51] it had that's why there is a a difference there in the big picture whether the base starts at 12 million or [43:58] 15 million is fairly immaterial when you're looking at a completed project that's valued at about a quarter of a [44:05] billion. So eventually uh as we refine the numbers on the project um [44:14] uh you know we'll look at the most recently available data um but right now the tiff agreement [44:20] um that we entered into presumes last year's valuation and when we write those [44:25] we always write them so that if there's an air we air on the conservative side [44:31] to benefit the city. So, um, we're not recommending redoing all the numbers, all the TIFF numbers. [44:39] We're just recommending changing the dates. Um, but the actual revenue recognized by the developer will [44:45] certainly be affected by this 9-month delay. So, we won't have, you know, multiplying [44:52] out over 20 years, that's 60 million of property tax. That won't be a hit that we'll be taking. It'll be factored in [44:59] because 12 and 15 you got differential. [45:09] Would you explain that? Would you ask that question again, please? Um I I realize it's the tax on 60 [45:15] million and so it's not 60 million outright, but it just I keep thinking [45:20] that Well, it you know what? It's okay. We can move on. [45:27] expect those numbers to change annually. Um you know as the valuation of the property property changes every year [45:34] that number is always a moving target but when we started this conversation last year it was 12 and that's that's [45:41] still the starting point but expect that number to always change. [45:47] Mr. Chair, Commissioner Jackson have some enlightenment here. Yeah. I think what Commissioner Risser's [45:52] getting at is uh the taxes that will be levied on this property will be based on [45:58] what initial value is it the 12.1 million or the actual sales price or [46:03] what is the um the baseline figure that will be taxed for purposes of Henipin [46:09] County and and and so so that the market value um that is beginning that [46:15] continues to be taxed and revenues generated during the um tiff period. Sure. So when we certify this, there's [46:23] another step in the process. This is kind of behind the scenes staff and auditor kind of kind of uh roles, but [46:30] when the developer purchases the site will then certify the tiff district. And [46:36] once you certify it, that's when you lock in that base. Um so we would expect [46:41] to certify it in September. And so whatever the number is in [46:47] September would be the base. So, if that's now at 15 million, that would become the base for the TIFF district. [46:55] Um, I think that answers your question. Yeah, I I think that's what Commissioner Risser's getting at. So, thank you very [47:01] much. A big thank you, Commissioner Pierce. Um, I I just had a [47:07] um a question, more of a clarification. So in the when you're teeing this up as [47:15] really just a timing issue. Um and then in the item report though we do talk [47:21] about um financial uncertainty, financial markets. And so I I'm just [47:30] when I first read through this, I was thinking that there were challenges from [47:35] a financial perspective in getting funding and that was one of the reasons we were looking at this extension, but [47:43] then in the presentation it is more of a timing issue. So, can you just clarify, [47:50] excuse me, if you could just clarify um whether there are financial issues or [47:56] not? Or perhaps um Mr. Brahman could come up and speak to that as well. [48:01] Sure. Yeah, happy to. So, it's a little bit of everything, right? It's um uh uh [48:08] the financial markets this year have been in flux. You know, our tariffs on, our tariffs off, how much is that [48:14] refrigerator going to cost? How much is that concrete mix going to cost? There's been lots of questions. So that [48:20] certainly has affected this project's budget as well as most projects in the [48:25] country. Um so uh the there's certainly financial um uh uncertainty in that [48:33] regard. Uh it's also challenging for an investor to commit to the project when [48:38] they don't don't know what the price tag is, when they don't know what the returns are. Um, so I, you know, I won't [48:46] I'll let Mr. Brahma speak if he if he wants to get into more details, but, um, I don't see the these as financial [48:52] problems, but certainly in the decision to not acquire the land and then lease [48:58] it back to Macy's. I have to think that a lot that also in that in that decision [49:04] was what are interest rates going to be in January versus September? Are they [49:09] going to be higher or lower? because they were trending up or they were trending up and then they were down and then the Fed said they're going to lower [49:15] it. So, they're trying to get the best deal. So, pushing the closing down the road certainly should help their [49:20] financing. Um, uh, so I think it's a a number of factors that lead to this schedule. [49:28] Thank you. Further questions [49:33] on this issue. Is there a motion to approve the first amendments to each of the three [49:39] redevelopment agreements for 7235 France Avenue, including the southwest element, [49:44] the northwest element, and the east element, and authorizing staff to carry out the terms of the amended agreements. [49:51] So moved. Second. Mr. Jackson moves. Commissioner Pierce the adoption of the motion stated, [49:57] approving those first amendments for those three elements, components of the [50:02] um project at 7235 France Avenue. Any further discussion, [50:08] Commissioner Brisser? Um, I realize that this is relatively a routine vote. I did vote against this. I [50:15] have been doing more looking into um issues that have to do with [50:20] development. We did just get back our quality of life survey. Overdevelopment and incorrect or inappropriate [50:27] development is a concern that a lot of residents have. Um, I did go back and look at the greater Southdale area final [50:34] land use and transportation study which was created specifically for Henipin County and Dina which makes sense for [50:41] this area because it is France Avenue and York and it very specifically says [50:47] that this is a place where we should have incremental change and we keep putting these tiff districts in place [50:54] that go in the opposite direction that are transformational change. And so I just and we tiff it in order to help [51:02] move it along. And in this case, it's been tiff and also spark. And so I just [51:08] wanted to make that statement. I can't support this partly because I haven't supported it in the past. But as I look [51:15] at, you know, the roads that we're going down and where we're headed, this just doesn't make sense to me as a tiff [51:21] district and this type of development. So I wanted to just explain that. [51:26] Other comments? Okay. Thank you, Commissioner Mercer. Uh we've got a motion and a [51:33] second to approve the first amendments uh as stated to the uh contracts to redevelop the property that we already [51:40] approved redevelopment of u in the form of this motion is uh let's that's vote. [51:46] All those in favor of adoption of the motion as stated say I. I opposed. Nay. [51:51] Carried. The motion is approved. And then uh we've got a Spark program [51:58] update. And it looks like a little out of sequence here with the agenda, but uh I'm assuming the executive director will [52:04] comment after we get to the spark. Yeah. I have two quick items after after Mr. Newondorfaces this. [52:12] All right. Just an update. So no action on this. Bill, excuse me for a second. Mr. [52:18] Brahma, do you want to come up real quick and be I was thinking before you take off, you want to come up real quick [52:24] and and answer Commissioner Pierce's question. How are you doing on your on [52:29] this project and the financing? Glad to chair, members of HR, uh happy [52:36] to stand before you again. It's been a while since last November. Um yeah, uh happy to respond to the comments on [52:42] timing versus financing. Um Mr. Nundorf did answer the question similar to the [52:48] way that we would approach it. So similar answer but uh kind of breaking it down in maybe a different lens is um [52:54] there's two components that the way that we're looking at the project. One is this first land closing all the master [53:00] site improvements because it's such a dense site with so many uses and a lot of shared infrastructure, shared storm [53:06] water, shared road, shared utilities. um getting that step done and out of the [53:13] way so everybody can then take their individual piece and move forward with it from a financing partnership [53:18] perspective makes it a lot cleaner. Originally, we're thinking we're going to be able to parallel path at all, but it it's become a little bit um mucky [53:26] doing that. So, we're separating the two. So, we're we're going through this closing right now, the land closing. We're financing all the master site [53:32] improvements, getting through that. It'll take us through the spring and then over the winter in the meantime, we'll keep parallel pathing. We intend [53:39] to bring forward our go forward letters, I think we call them, for all the individual buildings and work with the [53:45] staff team and you as needed uh on the final packages for the vertical improvements for each of the buildings. [53:51] Timing is a huge factor. I could talk for five minutes about all the things that have happened over the last year in the market and whatnot, especially since [53:57] last November when we got our approvals. So, timing, market conditions are humongous factors for us. [54:04] Any questions for Mr. Brahma? All right. Thank you for being here this morning. Appreciate you having here and getting a [54:11] firsthand update. Helpful. Okay. Thank you. [54:16] Uh Mr. Nundor, sorry for the interruption there. I thought I saw him start to move in his chair and I thought, oh, let's get that question. [54:22] Commissioner Pierce's answered. All right. Yeah, back to the spark chair. Just wanted to provide an update on the [54:29] spark program. Um, so there's a couple things to keep in mind. Initially, the Spark program was set up uh with [54:37] statewide legislation and was the legislation required that it be terminated by the end of 2025. [54:44] That state law changed um and it now allows it to be terminated in 2026. So, [54:51] we have a little bit more time than we thought we did. Um in a future meeting, we'll bring forward a a a resolution to [54:58] recognize that one-year statewide extension. So it's December 31, 2026 now is the [55:04] deadline. Okay. Correct. So that that's an important date to to remember. Uh when we were negotiating with Enclave [55:11] and others, we thought 2025 was the date. So we in some of those documents, we included language to use Spark um [55:21] based on the deadline in state law. But now that we have another year, we're considering some other ways of deploying [55:27] those funds. So, we've got most of the monies committed, but starting to refine our [55:34] balance sheet. We have about $450,000 still available in that program. Uh [55:42] there's always uh an option of of um turning the monies back to the county. [55:48] That is always an option if we choose. Um so far, we've chosen to deploy those monies into businesses here in Adina. [55:55] Um, and so there's three restaurant projects that I'm currently working on to possibly use these monies. Um, [56:04] with the Enclave and the lifestyle proposal, using TIFF is enough to make their budgets whole and we can fill in [56:11] their gaps with TIFF. Um, so knowing that we've got a solution for that project, um, we might deploy the the [56:19] remaining monies to rest to to three other smaller businesses instead. So, just wanted to give you a heads up on [56:25] that one. One of the bu businesses uh is the potential expansion and complete [56:32] remodel of a restaurant down at 50th in France. They're looking at completely repositioning the building um to be more [56:39] competitive in the marketplace and that would uh that would entail a a partial [56:46] second story. So, that project is going to start going through all the zoning regulatory conversations in the very [56:52] near future. uh planning commission, city council, etc. But in order to reposition that [56:59] property, and I think it is a good idea to reposition it for the future, a a tiff uh either grant or loan would be [57:07] very helpful to make that project happen. Um so I just wanted to bring that to your attention. [57:13] There's a second restaurant project um uh nearby here actually. Um it's the uh [57:18] it's the restaurant in the Mesa Green building. they continue to um have [57:25] challenges with with parking. They thought that the the existing parking [57:30] lot would be sufficient. What they're finding is that their customers um just expect to have more readily [57:36] available parking. They're not so keen on parking on the street and walking half a block or a block. Um, so we're [57:43] also looking into possibly doing a loan to that business to expand their parking lot. That would allow them to extend [57:50] their hours of operations and reposition them for better success. The restaurant is doing is doing well, but they're the [57:56] parking continues to be the challenge on that site. And then the third one that I'm working with uh is a restaurant in [58:04] an office building um uh 7201 Metro the E building the old [58:10] Regis headquarters. When the owners purchased that building they intended to put a restaurant on the first floor and [58:17] it just hasn't happened yet. So right now that space is raw and vacant. Um, [58:23] we've got a couple potential users for that space and they're they're running into the cost problem where the cost to [58:30] transform it from a vacant space into a space that has plumbing and electrical [58:35] supply that can actually operate a restaurant is just much higher than it used to be. So, we're looking at [58:41] possibly doing a streamline grant or similar to that project to get a restaurant in there. So, three potential [58:49] op uh options there. I'm going to continue to to have discussions with all of them, but I just wanted to bring that [58:55] to your attention because um you know, we still want to make sure that we can [59:01] deploy these funds to help businesses in Adina and um to have three potential [59:06] restaurants reposition for success, I think is something that the community would really appreciate. So, um, wanted [59:14] to bring that to your attention and if these negotiations work out, I'll be bringing full contracts to you, uh, in [59:19] September or October, um, to actually take action on, but I just wanted to put it on your radar today. [59:25] Thank you, Commissioner Jackson. Yes. Thank you, Mr. Chair. Two questions. One is since the Highway 100 [59:32] bridge is designed differently than we thought when we approved Maison Green and we've got that easement um on the [59:39] land to the east. Is that potentially where the parking lot would go? Correct. Correct. Yes, there's um Yeah, [59:45] there's the easement that right now to the west. Yeah, to the west. It's right along the highway. I was thinking to the east. No, that's [59:51] the No, to the west. Yeah. Yeah. So, it's that green space just to the west of the existing parking [59:57] lot. And part of the reason why it's so expensive is that it was designed and built as landscaping. And so, to turn it [1:00:04] into parking, you've got to build a retaining wall and then you have to handle the storm water. So, it's an [1:00:12] exorbitantly expensive parking lot expansion. Um, but that is the location [1:00:17] where it could potentially go. um the owner is still working through engineering to see how that could work [1:00:23] and and solidifying their pricing. If they feel that they can make it work from an engineering perspective, they [1:00:29] have to make a return trip to the planning commission and I probably city council because it is a site plan [1:00:34] change. So, there's still a lot of process to happen in here, but that's the the location where more parking [1:00:41] could be possible. Okay. Thank you. And then um at the um eb buildingild if there's going to be a [1:00:47] restaurant there and potentially we fund it is there and this is just an idea but [1:00:53] um you talked about electricity and plumbing but you didn't talk about gas. So it would be kind of cool if it was an [1:01:00] all electric um restaurant if that's possible sort sort of with an [1:01:05] environmental um you know electrify everything lens. I just ask that be part [1:01:11] of the conversation. I'm not going to put any strings or anything, but it would be an interesting conversation to have as you're talking about that. [1:01:17] I'll I'll definitely bring that up. I don't know if that aligns with how they make their product, but I'll certainly bring it up. Okay. Thank you. [1:01:24] Other questions for Mr. Nudor for comments on his activities. Okay. All [1:01:29] right. Uh thanks. With respect to the ebuilding, it causes me to turn to our executive director. Um, this is more in [1:01:36] the capacity of our city uh council hats, but uh there was a loan we we uh [1:01:43] modified the loan for the chamber and the first payment I think was due in July. I'm assuming they made that [1:01:49] payment. They have that was what close to 20,000 I believe that's right. 18 maybe. So [1:01:56] something like that. Yeah. I think the total annual obligation was 38 or 40,000. [1:02:01] Yeah. The first the first loan payment was 19,000 and change. I don't remember the precise amount [1:02:07] that's been made. Yeah, that was made in uh the last couple days of June. So, they paid a couple days [1:02:12] early. Thanks. Um, manager Neil. Thank you, your honor. Um, two quick [1:02:18] items from me. One, um, this is budget time of year. Budget time not only for [1:02:24] the city but also for the HA. The HA budget this year has really just spent or for proposed for 26 is just the [1:02:31] annual kind of incremental 3% growth in the levy and and really the same basic [1:02:36] uh expenses and and program that goes with that. But the you have to also in [1:02:42] your capacity as the HA uh endorse the levy approve a preliminary levy just like you do as a city council. That's on [1:02:48] its way to you and I think we're going to pre preview that at the next H meeting um which is on August 28th. And [1:02:55] you noticed today that this was all all Bill all day at this meeting. The next meeting on the 28th will be all [1:03:02] Stephanie all day. So we've got their their items kind of coordinated with various vacation schedules and things [1:03:08] like that. And so Stephanie will be here um and line up her items at the next HR meeting on the 28th. [1:03:15] Yeah, I'm glad you mentioned that because that was one of the questions when I looked at my calendar. I thought, do we have a meeting on the 28th or not? [1:03:21] So we do. Indeed. Okay. Uh, anything from commissioners? [1:03:28] Commissioner Agnu, welcome back. Thank you. Uh, yeah, you look like you're doing great. [1:03:33] No, I was I was sad to miss the meeting, but it fell on the day that she arrived [1:03:38] and I wasn't ready. You thought it was going to she was going to show up on Sunday, but [1:03:44] I thought she'd be early and she was four days late. So, those were a long [1:03:51] four days. And does three feel a lot different than two? [1:03:56] It's still easy in the sense that like she just sleeps a lot. Um I expect it to [1:04:03] get harder. Yeah. Well, congratulations and thanks for being here this morning. All right. [1:04:09] Um that prompt anybody else to think of anything they wanted to comment on? [1:04:15] Right, Commissioner Risser? Just real quickly, I don't know if this is happening in other parts of Edina, but I saw homemade signs to encourage people [1:04:23] to drive more slowly with really fun interesting, you know, slogans. One was [1:04:29] drive like you're headed to Whole Foods, not Monaco. And I thought, go Edina residents. This [1:04:35] is really great. So, yeah, you've raised an interesting issue. I've been getting quite a few calls about speeding in the [1:04:41] neighborhoods and uh maybe some kind of a more effective communication strategy [1:04:48] around uh for our residents about uh taking a little bit more time to get from A to B would be good. Plus uh [1:04:54] because enforcement is tough. I mean our guys are out there doing their job. We have a whole campaign around drive [1:05:00] 25, but I will talk to engineering about maybe putting some money behind that campaign again. Okay. [1:05:07] All right. Is there a motion to adjurnn? So moved. I second. Commissioner Agnu move excer [1:05:15] commissioner Jackson move the uh the um adjourment of the meeting of the HA this [1:05:20] Thursday August 14th 2025. Any further discussion? All those in favor of adjournment say I. [1:05:26] I. I. Opposed. Carried. The H for Thursday August 14th 2025 stands adjourned. Did [1:05:33] you