Edina pauses housing plan for 4.8-acre fire station parcel
The Edina Housing and Redevelopment Authority decided Wednesday to pump the brakes on a proposal to develop a city-owned parcel next to Fire Station No. 2, citing concerns about property access, unclear market value, and whether affordable housing is the best use of the land.
The HRA had planned to issue a request for proposals (RFP) seeking residential development on the 4.8-acre parcel, aligned with the city's affordable housing goals. But commissioners raised significant concerns during the work session, ultimately rejecting the proposal as presented.
The most immediate problem: the parcel is landlocked. Minnesota law requires a minimum 5-acre threshold to create legal access to a property. At 4.8 acres, any residential development would face a critical legal barrier that staff hadn't fully resolved. "I can't support issuing an RFP to develop land that will be a landlocked parcel," one commissioner stated bluntly.
But the concerns ran deeper. Multiple commissioners expressed worry about rising property taxes burdening residents—particularly those on fixed incomes—and questioned whether the city should instead sell the parcel to generate revenue for tax relief. "I don't think I've ever had so many letters from our residents concerned about property tax increases," one commissioner said, arguing the city needs to know the property's market value before committing to housing-only development. Commissioners also raised questions about impacts on neighboring businesses, including potential pedestrian cut-through traffic near a nearby furniture store and Trader Joe's.
One commissioner introduced an alternative idea: developing microgrid infrastructure on the site. Microgrids—localized energy systems often paired with fire stations—could enhance property value, align with sustainability goals, and tap available grant funding, the commissioner argued.
The consensus: pause the RFP process. The HRA will conduct an independent property appraisal, broaden the development framework to explore multiple uses beyond residential, address legal and access issues, and assess impacts on neighboring properties. Staff will return with a revised RFP framework in January 2026. No formal vote was recorded, as this was a work session focused on direction-setting rather than formal action.
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Votes (1)
Request for Proposal (RFP) Framework for Fire Station No. 2 Outparcel Development
Dissent: One commissioner explicitly stated inability to support an RFP for a landlocked 4.8-acre parcel without resolving legal access issues. Multiple commissioners expressed concerns about the narrowness of the residential-focused RFP and the lack of consideration for property valuation and broader fiscal strategy. No commissioner voiced strong support for proceeding with the RFP as originally presented.
Staff presented a proposal to issue an RFP seeking residential development aligned with city comprehensive plan, budget pillars (equity, health, sustainability, stewardship, engagement), and affordable housing goals. The RFP framework would require proposals to address affordability mechanisms (deed restrictions, community land trusts, ground leases), sustainable construction, bike/pedestrian connectivity, wetland enhancement, and post-construction tax value. However, multiple commissioners expressed concerns that the RFP scope was premature and too narrowly focused on residential/affordable housing without first: (1) obtaining an independent property appraisal to establish market value; (2) exploring alternative uses and broader development possibilities; (3) considering the property's potential to generate revenue for tax relief; and (4) addressing critical legal/access issues related to the 4.8-acre subdivision. Commissioners also raised concerns about neighboring property impacts and suggested exploring alternative uses such as microgrid infrastructure. The consensus emerged to pause the RFP process and first conduct a property appraisal and broader scoping exercise.
Notable Quotes (9)
We work within the parameters of visions and plans that have been approved by the city council and the HRA. So we try to carry forth those visions that have been in these fully vetted plans that had a lot of community process. And so if it's not in the plan we will I wouldn't bring it forward to you as a concept or an idea unless directed otherwise.
My understanding is that one of the asks is that we approve moving forward with issuing an RFP to develop the land that will be a landlocked parcel 4.8 acres in size. And I need to say very clearly, I can't support that.
I don't think I've ever had so many letters from our residents concerned about property tax increases... I think we have to know what the property's worth on the retail market... And then use that money to keep our residents taxes down or... I think we need to frame it up a little bit broader way from a foundational sort of standpoint before we head for an RFP on housing only because I think we've got these other responsibilities.
I was going to go back to slide two... I do think we need a bigger. We need to cast a wider net. And... I don't think we should go for it with an RFP that is positioning us to only those kinds of outcomes... I think we need to cast a wider net. And personally, I think we should be looking holistically at how we stabilize our general levy.
I have a feeling that really top economic times are coming... So what does that look like? It's a scale, right? Balance on the one hand. We're going to be facing pressures for our city budget. On the other hand, the need for affordable housing is going to skyrocket because we're going to have a lot of unemployment coming forward... So how do we put that balance together in the use of this land?
Microgrids are paired with fire stations so that when the power is out, you have more security in terms of your energy. It is a way to mitigate rising costs of electricity... It seems the city would own and manage or we would sell it and have someone do that... There are grants out there for them... I think it could add value to any sale price that we might want to pursue... I do think it's an idea that is really worth pursuing.
I went out to the land yesterday. It really does not feel like you're surrounded. All of the buildings are facing their backs to this land... I could see there being concerned with people cutting through parking lots... There's a lot of things that really do concern me about. I would not want an RFP to go forward that was super residential focused.
I remember Council members Staunton saying. This will be really good for the property owners of e dina because it's a way we'll be able to keep taxes low. And the problem is as we've added buildings, density... why did we do this? It's seven stories high and it was zoned for four and two stories... And then I said, but we tifted and he nearly fell off his chair... we keep tipping multifamily.
I think to me that those are the what we want to call next steps or whatever appraise the property. And we want to frame in RFP. And then the content of what's in there, right? We could discuss that general in general.
Ordinances & Resolutions (10)
City planning document that guides land use; specifies the parcel as office/residential. Referenced as the foundational framework for all development decisions.
Ongoing process to align zoning with comprehensive plan guidance. The parcel is currently zoned planned industrial but guided for office/residential.
Referenced as supporting residential development alignment with city plans.
Referenced as supporting residential development alignment with city plans.
Authorized the HRA to conduct discussions on behalf of the city regarding the parcel; final decision authority remains with city council.
Survey data showing 61% of residents report too little affordable housing for singles and families; affordable housing listed as one of top four issues facing the city.
Includes 'Livable City' pillar with focus on advancing affordable housing goals and increasing housing options. Guides staff project selection and evaluation.
Requires minimum 5-acre parcel for cartway easement creation; the 4.8-acre subdivision would not meet this threshold, creating legal access challenges.
Conceptual plan presented during Fire Station No. 2 planning; included residential development concept on the outparcel with internal street and green space preservation.
Housing foundation proposed RFP process for the site; presented conceptual massing and housing types to HRA.
Source document
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Other Topics from This Document
Property Tax Burden and Municipal Financial Sustainability
Land Use, Zoning, and Access Challenges
Alternative Development Opportunities: Microgrids and Energy Infrastructure
Neighboring Property Concerns and Community Impact
Also from this meeting
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Southdale Library and Edina Art Center RedevelopmentJun 12, 2026Edina Launches $100,000 Down Payment Loans for Local Workers
Edina Heroes Down Payment Assistance ProgramJun 11, 2026Edina Eyes Affordable Housing on Vacant Fire Station Land
Request for Proposals (RFP) for Fire Station 2 Out-Lot RedevelopmentJun 11, 2026
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