HRA approves amended loan terms with Edina Chamber of Commerce to ease repayment

Edina Housing and Redevelopment Authority members voted April 10 to approve a second amendment to a 2022 drawdown loan agreement with the Edina Chamber of Commerce that extends repayment terms and adds modest administrative costs.

The amendment, recommended by Bill Neuendorf, Economic Development Director, extends the loan amortization from seven years to 15, keeps the 2% interest rate, raises the outstanding balance by roughly $5,000 to cover internal legal costs, and shifts semiannual payments to July and December at about $18,000 each to reduce near-term cash-flow pressure on the chamber.

Why it matters: The HRA issued roughly $650,000 in 2022 under the Edina Spark program to remodel a vacant commercial space and operate a business “Innovation Lab.” The lab closed earlier this year after failing to develop sustainable operating revenue; the chamber remains the borrower and the loan balance is about $469,000. Board members said extending the term reduces the risk that the chamber’s repayment schedule would endanger its ongoing operations.

In presenting the amendment, Neuendorf said the loan was created during pandemic-era discussions and that the Edina Spark program and special state authorization enabled the city to use previously collected, unallocated TIF monies for job creation and space improvements. He told the HRA that staff negotiated a…