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Minnetonka EDAC recommends 2026 HRA levy and forwards Economic Improvement Program to council
Summary
The Minnetonka Economic Development Advisory Commission reviewed the draft 2026 Economic Improvement Program (EIP), endorsed continuing the HRA levy funding package that sustains local housing programs and recommended the EIP, with minor edits, to the City Council for final consideration.
The Minnetonka Economic Development Advisory Commission voted on Aug. 2025 to recommend the city’s 2026 HRA levy allocation and forward the five-year Economic Improvement Program to the City Council for final action.
Alicia Grama, Community Development Department staff, told commissioners that “This will be the final iteration at EDAC to review the EIP. So this will go to council, I think, next month and, for consideration for final approval.” Grama reviewed the document’s housing, economic development, transit and redevelopment programs and the revenue sources that fund them.
Why it matters: the EIP bundles the city’s locally controlled funding priorities — including housing loans, down-payment assistance and redevelopment planning — into a single five-year plan that guides recommendations to the City Council and staff spending. The commission’s recommendation moves the document one step closer to formal adoption.
Most of the discussion centered on housing funding and program priorities. Grama outlined the city’s funds: a development account balance of about $4,000,000; a Livable Communities commitment of roughly $673,000; the existing HRA levy historically between $200,000 and $325,000 per year; and new Local Affordable Housing Aid (LAHA) receipts — $321,000 in 2024 and an estimated $800,000 for 2025. Grama said LAHA “can be used for pretty much, there's a lot [of] housing uses,” but cautioned that reporting requirements limit how the funds might be used for small, recoverable household loans.
Commissioners debated how to allocate limited HRA levy dollars among programs. Grama noted staff’s recommendation to continue funding the Pathways to Homeownership program from the levy at the previously proposed $175,000 level and to continue a contribution to Homes Within Reach. A commissioner said Pathways produces “more equity” for buyers in some cases, while Homes Within Reach uses a land-trust model that can produce deeper long-term affordability. Grama explained that Homes Within Reach must get city approval to purchase and that several potential purchases this year were rejected because of condition, location or equity considerations.
The commission also reviewed the Affordable Housing Trust Fund and recent one-time awards: the council approved an additional $200,000 to support Pathways through 2025, and staff reported a $150,000 rental-assistance grant from Minnesota Housing. Grama said the Trust Fund has supported projects including Opus, the Mills twin-home commitment and Amani Construction work.
On other chapters of the EIP, staff reported continued business outreach and services — including Elevate Hennepin participation and a growing business advisory program — and that transit work primarily comes from the Met Council and Metro Transit, with local involvement in commuter services and station-area redevelopment. Grama and staff said federal, county and state funding competition makes local contribution likely around some LRT station-area redevelopment.
Actions and votes: the commission recorded two formal recommendations to the City Council tied to the EIP package. A roll-call vote approved recommending the HRA levy allocation for 2026 (Anderson: yes; Conners: yes; Hague: yes; Ramatka: yes). The commission then moved, seconded and approved a recommendation that the council consider the EIP, as presented with a few edits; that motion carried on a unanimous voice vote (“Aye”).
Commissioners asked staff for clarifications and more data before the council meeting, including (1) continued refinement of revenue tables and committed loan repayments in the development fund forecast, (2) follow-up on LAHA reporting rules to guide whether LAHA should fund larger projects versus individual household loans, and (3) continued use and potential external publication of an internal housing dashboard to track program utilization over time.
The EDAC will forward the EIP and the commission’s levy recommendation to the Minnetonka City Council for its September study-session and the council’s consideration on Sept. 8, 2025.
Ending note: staff said the EIP review was the commission’s final formal review prior to the council meeting; Grama asked commissioners for any additional edits to convey to council and the commission adjourned after approving the recommendation.
