Edina Council Reviews $28M Interchange Project, Assessing Services Transition
The Edina City Council reviewed progress on the Vernon Avenue and Highway 100 interchange project and discussed transitioning city assessing services to Hennepin County during a work session Tuesday.
The $28.2 million interchange project is set to begin construction in late April after months of delays caused by railroad easement negotiations, according to Director Milner. Ames Construction submitted the winning bid and committed to substantial completion by November 15, 2025, to minimize impacts on holiday shopping in the Grand View and 50th and France districts. The city will hold the contract and seek reimbursement from partners, with funding coming from federal sources ($11.2 million), county contributions ($12.4 million), and city sources ($15.5 million) including bonding, utility funds, and tax increment financing.
The council also examined a proposal from Hennepin County to absorb the city's assessing services at no direct charge. County Administrator David Huff explained the county recently incorporated $5.4 million in assessing costs into its general levy to serve 37 smaller cities and is now offering the same arrangement to larger municipalities. Only Edina and Maple Grove have expressed interest among the eight cities that currently provide their own assessing services.
City Assessor Sheila Stozinger raised concerns about service quality under county management, citing examples of residents needing in-person assistance and the complexity of Edina's high-value properties. She noted Edina generated 114 tax court petitions in 2024 compared to 510 for all 37 cities currently served by the county. The transition would require converting to new computer systems and could affect the specialized knowledge assessors have developed about local neighborhoods and market conditions.
The council requested additional information about service level agreements and customer experience profiles before making a decision. County officials indicated they need responses by May 1 for budget planning purposes, though they suggested the deadline could be flexible. The council will consider both items at their April 16 meeting.
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Votes (2)
Vernon Avenue and Highway 100 Interchange Project - Construction Contract Award and Traffic Management
Dissent: No dissent recorded; council members expressed concerns about communication and signage but supported project direction
Director Chad Milner presented comprehensive project overview including: (1) Project goals focused on safety, mobility, pedestrian/cyclist connectivity, and economic viability; (2) Funding breakdown totaling $28.2M with federal ($11.2M), county ($7M), and city ($4.2M) contributions; (3) Timeline showing federal authorization in July 2024, bid opening in March 2025, contract award scheduled April 16th, construction start late April/early May 2025, and substantial completion November 15th, 2025; (4) Detailed traffic staging across three phases with emphasis on maintaining Highway 100 ramps for majority of construction; (5) Communication strategy including bi-weekly virtual meetings, press releases, social media, and targeted business outreach; (6) Utility work including water main loop, sewer upgrades, and stormwater improvements; (7) Non-motorized improvements including 10-foot sidewalks on both sides and automated pedestrian signals. Council members raised concerns about signage clarity (referencing previous roundabout construction issues), requested specific business district signage on Highway 100, and discussed future pedestrian bridge over Highway 100 connecting to City Hall. Discussion of potential city space on MDOT right-of-way for municipal campus or fire station, with negotiations to resume during construction phase.
Transition of City Assessing Services to Hennepin County - Service Level and Financial Analysis
Dissent: City Assessor Sheila Stozinger expressed strong professional opposition to transition, citing service quality concerns, system transition risks, and complexity of Edina's assessment portfolio. Council members Julie and Kate raised significant concerns about financial analysis, service level impacts, and resident input, requesting detailed documentation before decision.
City Manager Scott Neil introduced proposal to transition Edina's assessing department to Hennepin County as part of budget stabilization strategy targeting 5-7% reduction in general levy growth (from projected 13% to below 10%). County Administrator David Huff and Assistant County Administrator Dan Rogan presented county's model of providing assessment services to 37 smaller cities at no additional cost, with commitment to hire existing city assessors and maintain local office presence. Key discussion points: (1) Financial impact - estimated $500K first year savings, potentially $1M annually, but council questioned whether savings represent true cost reduction or merely shift from city to county levy; (2) Service level concerns - City Assessor Sheila Stozinger provided detailed examples of current service quality including in-person assistance for elderly residents without computer access, neighborhood-specific appraiser knowledge, and complex tax court petition handling (114 petitions in 2024 vs. county's 510 across all 37 cities); (3) System transition risks - new CAMA system implementation at county with 5-year build-out period vs. city's established systems; (4) Precedent - Plymouth transitioned 7 years ago with satisfactory results; (5) Ripple effects - potential forced transition of other "Big Eight" cities if Edina and Maple Grove leave, affecting LOGIS system costs; (6) Resident impact - council discussed whether to conduct quality of life survey similar to 2014 dispatch decision; (7) Timeline - county requested decision by May 1st, 2025 for budget planning purposes. Council expressed strong interest in detailed service level agreements, customer experience profiles, and comprehensive financial analysis before decision.
Notable Quotes (19)
Project goals improve safety and mobility of all users create those new separated pedestrian routes improve traffic operations consolidate all those access points on Highway 100 improve that connectivity between residential and commercial areas of the district limit construction impacts...enhance that economic viability with all the improved access for both walkers and bikers and the traveling public by automobiles
The railroad is holding us up because of that easement agreement and continue to hold us up and we finally got uh that approved in January early February of 2025 so it was months of delay
I remember even driving been being like 'How do I get to 50th of France is that completely closed?' So as much communication as we can include please
We asked Mandot if we could do special signs that say Grand View businesses and 50th and France district out on the highway so north to here and they're allowing us to put some specific signs like that out on the highway
It's state right yep it's already can't think of the term we'll probably think of it here in a little bit but we keep seeing that's secured and ready to go the agreements already
Could we use more tiff dollar unspent tiff how much unspent tiff could be applied to this project...we have more than this in the Centennial Lakes TIFF and that's the only one that would that could one could not be used at the time where this one was the most flexible
Once you're under construction come back okay because they're like there's no point unless unless it's happening...if we do get funding we're hoping that stays in there excellent so if we do get funding we're hoping that stays in there excellent so then it's just done all right
The one we're in now that would reduce uh our rate of growth the trajectory of our property tax uh levy...we've looked at three main areas where we can do that from this capital spending its debt service and its operational spending
All of this is um about Edina residents and reducing costs for them and I want to know if this is simply um meaning that instead of paying the city for assessment services they're going to be paying the county for assessment services and there's going to be no net financial benefit for the Edina resident
I don't think that the way you framed the question was the original ask and so we may not all be on the same page so I just want to restate what I was asking for...the ask I had was the original general levy was projected to be 13% and I said...we need to have budget stabilization and I felt like we should target a 5 to7 million reduction in the general levy
If we do that because I agree in the context then the question is how are those costs if they do move how are they allocated right what is the allocation method is it and I'm totally making this up is it the bigger your house the larger your share is it you know some other factor we don't know that but that would be the question I would ask because that's how you would then know what is the impact on a smaller level
For approximately 37 years Hennepin County did or has provided assessment services for many many of the cities in Hennepin County...we would go to every city council we would negotiate 37 agreements uh try to create consistency and and staff appropriately so there were discussions conversations that were had last year...we wanted consistency so we went to the board uh last year and proposed that the county would absorb the 5.4 million that was then being paid in fees uh by those cities to the county and we built it into our tax base
We know that we can do this uh with fewer staff when you look at the eight cities...when we look at their combined FTEES their combined costs we believe that we can do it and we've we've done proformas uh with fewer staff and in respect to the question this is not cost shifting it would be built into the county's levy but the county levies on 400,000 parcels so the impact there will be an impact but it'll be slight
The other day two 90year-old ladies came in they don't call they come into city hall their homestead was removed they don't know why they've lived in the house forever nothing changed homestead's removed like we called Henipin County they told us we have to go online and reapply we don't have a computer we don't know how to use a computer so Jamie has them call Henipin County directly with on speakerphone...So Jamie gets the ladies up to the computer and helps them apply online...we have somebody in the office every day during business hours we have people answering the phone in the office every day during business hours being not 100% remote at the county means they're out in the field
The appraisers here have worked for years to get those quality levels of the houses and the rates so that those things will appraise out as near to market value as possible and that process takes over five years so if the county has a 2 to threeyear time to build out their new system then they're going to have another 5-year period of time to get all the buildings in eina in the KMA system to a point where KMA calculates it not where they're just rolling values with an adder
We have a lot of value we're the sixth highest valued city in the state we get a lot of tax court 2024 Henipin County and their 37 cities got 510 tax court petitions we had 114 so last year we had over $2 billion under petition i mean we have you know very complex and I'm I'm sorry i'm a little bit like I'm mad we do a great job for the city the county is not going to give you that service
I think it's dangerous for us to um move forward with a frame that suggests...that the customer experience is the same because it's not going to be uh with system changes the best system anyone ever used was the one they just switched from and so that's universal
We went through this debate several years ago about whether or not we had to switch our dispatching from our PD to the county yes and we made that question I think part of the quality of life survey as to whether or not our residents wanted to uh have their dispatch done by Henipin County and they said no they wanted it done locally they didn't care about the cost
This is not about a takeover i mean it's an offer and uh we extend that and we are open to having dialogue you don't have to make a decision by May one uh in all likelihood we may only hear from one other city...why I did this is to plan for my budget because I'm planning for a 2026 budget right now and this is operational...if we're going to do something I want to be planful and intentional about how we set this up to do it in a smooth orderly manner
Ordinances & Resolutions (6)
Project materials and maps showing Vernon Avenue and Highway 100 interchange improvements; includes traffic staging plans and non-motorized user accommodations
City of Edina secured $4.2M in federal funding through regional solicitation process for Highway 100 project
Pending legislation requesting $5.3M in state funding for Highway 100 interchange project; includes line item (B) dedicating property to city for potential municipal campus
MDOT grant of $1M secured by city in fall 2024 for Highway 100 project
Hennepin County proposal to absorb Edina's assessing operations; includes service level agreements and transition cost analysis
City council directive to reduce general levy growth from projected 13% to target of 5-7% reduction; identified assessing services transition as potential mechanism
Source document
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Other Topics from This Document
Vernon Avenue and Highway 100 Interchange Project Update
Traffic Management and Communication Strategy for Highway 100 Project
Project Funding and State Legislative Request
Transition of City Assessing Services to Hennepin County
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