StoryTIF Necessity and Financial Modeling for Enclave ProjectJune 13, 2026

Edina HRA delays decision on Macy's site redevelopment financing

The Edina Housing and Redevelopment Authority took no action on a proposed $8-acre mixed-use development at the former Macy's site on October 24, with one commissioner raising significant concerns about the project's financial structure and promised public benefits.

Meeting date: Oct 24, 2024
Published Jun 13, 2026

The HRA heard a presentation on whether the city should use Tax Increment Financing (TIF)—a tool that captures future property tax increases to pay for development costs—to help fund the Enclave project at the Macy's site on France Avenue. City Manager Patrick Nindorf told the board that "without the use of tax increment financing to reimburse them for some cost in the future this project is unable to proceed it's unable to secure debt and Equity to move forward."

Staff presented two scenarios: one with TIF that includes affordable housing, green building standards, and infrastructure improvements, and another without TIF that would require the city to waive those requirements. Developer Brahma sketched out what a non-TIF project would look like—significantly larger in scale and lacking affordable units—to illustrate why financial assistance is necessary.

However, Commissioner Risser voiced strong objections to both the process and the substance of the proposal. He criticized the city for "bundling" site plans with zoning decisions and questioned whether a pedestrian tunnel under France Avenue—one of the promised public benefits—actually serves the community. "I as a member of the HRA do not see a tunnel at this location under France as a public benefit," Risser said.

City Attorney Dave Kendall clarified an important legal point: the HRA has independent authority to reject TIF financing even though the City Council has already approved the underlying zoning for the project. "The HRA is free to decide not to approve Tiff," Kendall stated. "The HRA is not required to approve Tiff simply because the city council has approved PUD zoning."

The board took no vote on the TIF proposal, leaving the decision pending. The meeting highlighted a fundamental tension in the project: whether the promised public benefits—park maintenance fees, affordable housing, and pedestrian improvements—justify using public tax dollars to subsidize private development.

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Full analysis

Votes (1)

Reports and Recommendations: Macy's Site / Enclave Project TIF Analysis

Informational - No Action Taken

Dissent: Commissioner Risser voiced strong procedural and substantive concerns regarding the TIF term sheet and the pedestrian crossing study.

Moved by N/A · Seconded by N/A

Manager Nindorf emphasized that TIF provides the city leverage to extract public benefits like park fees and infrastructure that a market-rate project wouldn't provide. Developer Brahma presented a 'back-of-napkin' sketch of a non-TIF project to illustrate that it would be massive in scale and lack affordable housing. Commissioner Risser criticized the 'bundling' of site plans with zoning and expressed skepticism over the lhb study's objectivity.

Notable Quotes (3)

without the use of tax increment financing to reimburse them for some cost in the future this project is unable to proceed it's unable to secure debt and Equity to move forward

— Patrick Nindorf/Manager [7:52]
Reports and Recommendations: Macy's Site / Enclave Project TIF Analysis

I as a member of the HRA do not see a tunnel at this location under France as a public benefit

Reports and Recommendations: Macy's Site / Enclave Project TIF Analysis

the HRA is free to decide not to approve Tiff... the HRA is not required to approve Tiff simply because the city council has approved PUD zoning

— Dave Kendall/City Attorney [32:01]
Reports and Recommendations: Macy's Site / Enclave Project TIF Analysis

Ordinances & Resolutions (4)

PCD-3 (Planned Commercial District)Ordinance

The specific sub-district zoning code governing the Macy's site requirements.

Comprehensive PlanPlan

The city's overarching development guide which the 'No-TIF' alternative would violate.

Sustainable Building PolicyPlan

City policy requiring green building standards, which the developer indicated might be waived in a non-TIF scenario.

LAA (Legislative Allocation for Housing)Other

New state-authorized funding mechanism for housing issues mentioned during the consent agenda.

Source document

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Other Topics from This Document

  • France Avenue Pedestrian Crossing Study

  • PUD Zoning and Legal Authority

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