The Edina Housing and Redevelopment Authority tabled discussion of a proposed financing restructure for the 70th and France development project Thursday, pending legislative approval of a tax increment financing district extension.

The original $22 million TIF agreement has become insufficient due to rising interest rates, creating a $4.7 million shortfall, according to Economic Development Director Bill Nindorf. Staff proposed having the city co-sign debt or enter long-term leases to secure better borrowing rates, but commissioners expressed concerns about the increased risk profile.

"With a pay-as-you-go note, the risk is all with the developer and the city just uses TIF as a reward when they're finished," Nindorf explained. The new structure would shift some risk to the city if tax increment revenues fall short of debt payments.

Ted Carlson of Orion Investments said the restructure would allow the office building and residential components to be developed independently. The developers are seeking to decouple the financing between the two sites to move forward with the office building while the residential portion remains on hold.

Commissioners questioned whether the city should take on additional risk when private markets won't finance the project. The HRA will revisit the proposal after the legislature decides on extending the TIF district's five-year deadline to 10 years, expected by May.