The Housing and Redevelopment Authority approved a redevelopment agreement amendment that will direct $4.86 million in Spark funds — a pool of unallocated tax increment financing dollars — to support the apartment project at the northwest corner of 72nd Street and France Avenue.

The central debate focused on whether the city should mandate that 10% of units remain affordable in perpetuity, consistent with Edina's housing policy, or accept a lower percentage to reduce the public subsidy needed. Commissioners ultimately sided with enforcing the full affordability requirement.

Commissioner Risser cast the lone dissenting vote, arguing the funds could be better used elsewhere. "The spark fund use it or lose it philosophy is something that I want to push back against," Risser said during the meeting. "A third of this amount is $1.6 million that could go to our general fund." Risser expressed concern that public dollars were subsidizing luxury-style amenities in a market-rate building rather than essential city services.

Chair Hovland defended the investment, calling it "a put your money where your mouth is moment" for the city's affordable housing commitments. Commissioner Agnew joined Hovland in arguing that the project's density and permanent affordability provisions justified the expense. Affordable Housing Manager Stephanie Hackinson explained that the tax increment financing district "was created to help turn around" declining property values in the area.

In other business, staff provided an update on a troubled loan to the Edina Chamber of Commerce for its "Big Innovation Lab" business accelerator program. Economic Development Manager Bill Neuendorf acknowledged "the program is not yielding the revenue at either the pace or the level that was first projected." The lab has been spun off to an independent B-Corporation to attract outside capital, but the Chamber remains responsible for the debt. Chamber President Shelly Lemberg said the lab would stay in Edina until the loan is repaid. No vote was taken, though Commissioner Risser requested detailed financial reports before any loan restructuring is approved.