The Edina Housing and Redevelopment Authority approved extending loan repayment terms for the Chamber of Commerce from seven to 15 years Thursday, reducing annual payments from approximately $84,000 to $36,000 after the closure of a business innovation lab.

The HRA originally issued a $650,000 loan in 2022 through the Edina Spark program using unallocated tax increment financing funds to help remodel commercial space for the Business Innovation Lab. The lab, which opened in 2023, closed earlier this year after failing to secure sustainable funding, leaving the chamber with a $469,000 outstanding balance.

Economic Development Director Bill Newondorf said the restructured agreement ensures full loan repayment while preventing financial hardship to the chamber's ongoing operations. The chamber will make semi-annual payments of approximately $18,000 in July and December, with the first restructured payment due July 31.

Commissioner Risser expressed concerns about the use of lodging tax revenue from Explore Edina to help cover chamber expenses, noting that Explore Edina now shoulders 60% of rent and salary costs compared to the originally planned 25%. She questioned whether this arrangement complies with state law requiring 95% of lodging tax proceeds to promote tourism.

City Manager Scott Neil confirmed the arrangement operates within legal parameters, as visitor bureaus can use lodging tax funds for proportional operational costs. The chamber board unanimously approved the loan amendment Tuesday, with Chamber President Shelley Loberg and board chairs expressing confidence in their ability to meet the new payment schedule.