Grant Agreement Approval - O'Crep LLC (Ocreperie Tenant)
5-0 Approved (Motion carries)
Dissent: Commissioner Risser expressed concerns about TIF allocation patterns and the lack of public hearings for unallocated TIF fund decisions, but did not vote against the grant. She stated: 'I um conflicted on this you know I I think um you know on the one hand this is a wonderful project but what I'm concerned about is the way that we have been using Tiff the way we have been using unallocated monies and you know not thinking about the impact to the source where the Tiff Revenue came from.' She indicated uncertainty about whether to abstain or vote negatively but ultimately did not dissent from the recorded vote.
Moved by Commissioner Jackson [~01:35:00] · Seconded by Commissioner Pierce [~01:35:00]
Manager Neindorf presented the streamlined grant agreement for O'Crep LLC to support reoccupancy of the former Caribou Coffee space at 4400 Sunnyside Avenue South. The project involves ADA accessibility improvements (front door, windows, ramp compliance) and energy efficiency upgrades, with an estimated cost of $18,000. Tenant Claire Coras, originally from Brittany, France, explained her passion for authentic crepes and her existing successful partnership with Minneapolis Cider Company. She described unexpected compliance challenges discovered during the permitting process, including SACC (Stormwater Abatement and Capture Charge) obligations of approximately $118,000 and extensive ADA requirements. The grant would cover these improvements and create approximately 6 new jobs. Commissioners discussed the reimbursement structure (businesses must pay contractors first, then submit documentation for reimbursement) and the importance of transparency with public funds. Commissioner Jackson asked about green business recognition opportunities; Manager Neindorf agreed to forward information to grantees. Commissioner Risser expressed concerns about TIF fund allocation patterns favoring Northeast Edina over Southeast Edina (the source of most TIF revenues) but did not vote against the project.
Grant Agreement Approval - Arbor Sunnyside Properties LLC (Landlord/Parking Lot)
4-1 Approved (Motion carries)
Dissent: Commissioner Risser voted against this grant. The transcript records: 'uh motion is approved 4 to one um Grant agreement with Arbor Sunnyside Properties LLC is approved.' Risser's dissent appears to reflect her broader concerns about TIF allocation patterns and geographic equity, as expressed during the O'Crep discussion.
Moved by Commissioner Risser [~01:40:00] · Seconded by Commissioner Pierce [~01:40:00]
Manager Neindorf presented the streamlined grant agreement with Arbor Sunnyside Properties LLC (building owner Steve Young) to fund rear parking lot reconstruction. The project addresses an 8-inch step from the parking lot to the back doors of all tenant spaces, creating accessibility barriers. The estimated cost is approximately $40,000; the HRA grant would cover up to $24,000 (50% of costs). While the parking lot work itself does not directly create jobs, it is necessary infrastructure for the O'Crep tenant's new business. The work must be completed within one year per grant terms but timing has not been finalized. Building owner Steve Young explained that the parking lot reconstruction would benefit all tenants in the building by eliminating the step and improving grading. Commissioner Uland asked clarifying questions about the extent of the work (whether it would address accessibility issues for other tenants like Dick's Barbers and The Running Store). Young confirmed the work would benefit the entire building's rear access.
5146 Eden Avenue Housing Development RFP Strategy - Discussion and Feedback
No formal vote taken; item presented for discussion and feedback
Dissent: No dissent recorded; this was a discussion item. However, Commissioner Jackson expressed significant concerns about the affordability mix and site design, and Commissioner Pierce expressed low confidence in the project's viability. Chair Risser suggested the city should remain open to alternative uses beyond housing.
Manager Neindorf presented a comprehensive RFP strategy for the former public works site at 5146 Eden Avenue, targeting a mixed-use development with town homes, potential multifamily housing, a full-service restaurant (Jester Concepts), public green space, and shared parking. The RFP will be released by end of May 2024, with developer selection targeted for fall 2024 and project completion in phases during 2026-2027. The proposed affordability mix includes 10% of units at 80% AMI (Area Median Income), 40% at 120% AMI, and 50% at market rate, with long-term affordability protections via limited-equity models. Commissioners provided extensive feedback on multiple aspects: (1) Affordability concerns: Commissioner Jackson strongly opposed 50% market-rate units at million-dollar price points, advocating for greater affordability focus and questioning whether the market-rate component should be included at all. (2) Site design and campus feel: Commissioner Jackson criticized the renderings as 'chunky' and lacking the unified 'campus' feel that would allow flow between green space and housing. She suggested the Planning Commission would not approve the current design. (3) Flexibility and creativity: Chair Risser emphasized that the RFP should not overly constrain developer creativity, referencing past successes (e.g., 49th and A2 Street project) where open-ended RFPs yielded unexpected innovative proposals. (4) Alternative uses: Chair Risser suggested the city should remain open to non-housing uses, such as community gathering spaces (curling rinks, brew pubs, comedy clubs) that might activate the street and generate foot traffic. (5) Affordability depth: Commissioner Agno suggested targeting even deeper affordability (below 60% AMI) and creating mixed-income neighborhoods rather than concentrating affordable units. (6) Price point clarity: Commissioner Pierce emphasized the need to clarify that 'market rate' means median-priced homes (~$660K), not luxury homes (~$1.2M), and suggested developers should be allowed to propose creative alternatives outside the RFP parameters. (7) Housing type flexibility: Commissioner Pierce suggested the city should be open to all-townhouse developments if they meet affordability and design goals, rather than requiring multifamily components. (8) HOA concerns: Commissioner Agno noted that townhouse developments with minimal amenities can still have high HOA fees ($900/month) and expressed interest in exploring HOA-free models. (9) Sustainability and accessibility: Commissioner Agno emphasized the importance of energy efficiency, handicapped accessibility, and smaller architectural footprints. (10) Confidence and timeline: Commissioner Pierce expressed low confidence that the site will be developed given past project failures and suggested the city should be open to alternative uses. Manager Neindorf acknowledged that if the city asks developers to provide community gathering spaces, they will likely request city bonding and operating funding, which Chair Risser firmly opposed due to existing debt obligations (fire stations, Braemar clubhouse, pool updates). No formal vote was taken on this item; it was presented for discussion and feedback to inform the RFP development.
Business Subsidy Policy Update - Information Item
No formal vote taken; information item only
Executive Director announced that the city's 2011 Business Subsidy Policy will be updated to reflect changes in state law and current economic conditions. The policy update will begin with a public hearing at the City Council level, followed by HRA review. Staff will provide definitions of business subsidies and suggested public purposes to guide future decisions. No specific projects are currently planned for subsidy support, but the door remains open for future opportunities. Commissioner Risser requested that the updated policy include clear definitions of what constitutes a business subsidy and the different levels that trigger various requirements, as well as a list of suggested public purposes to help the public understand the scope of potential subsidies.
Tax Increment Financing District Extension Legislation - Information Item
No formal vote taken; information item only
Manager Neindorf reported that both the Minnesota House and Senate have adopted the city's requested language to extend the 70th and France TIF District and 72nd and France #2 TIF District timelines. This special legislation addresses project delays caused by economic changes since the districts' approval 2.5 years ago. The legislation is expected to be signed by the governor and will require subsequent approval from the city council, HRA, school district, and county. Eleven cities statewide are seeking similar TIF timeline extensions, indicating this is a common issue in the current economic environment. The extension will provide flexibility for developments to start and be completed within the extended timeline.
Edina Chamber of Commerce Innovation Lab Loan Restructuring - Information Item
No formal vote taken; information item only
Executive Director provided an update on the HRA's 2022 loan of $610,000 to the Edina Chamber of Commerce for physical improvements to house both the Chamber and the Innovation Lab. The Innovation Lab has not generated sufficient income to service the debt as originally planned, despite some success. The Chamber Board is exploring restructuring the Innovation Lab as a B-Corp (Benefit Corporation) to create additional private-sector income streams and improve financial sustainability. The HRA will need to consider loan restructuring proposals this summer. One payment has been made; a second payment is due in July 2024. Up to $250,000 in loan forgiveness is available if the Chamber meets specified milestones related to job creation and other performance metrics. The city is in good financial position due to a guarantor on the loan balance.