Edina HRA names preferred team to redevelop vacant Eden Avenue public worksite

The Edina Housing and Redevelopment Authority voted Thursday to recommend a development team led by Hempel Real Estate, working with Monarch Development Partners, Jester Concepts and Rokos Advisors, as the preferred buyer to redevelop the vacant former public worksite at 5146 Eden Avenue.

Economic Development Manager Bill Neuendorf told commissioners the HRA had received 11 proposals this year and invited five finalists to present in July. “We'd be looking for your recommendation to identify that team, and that's what we're prepared to do this morning,” Neuendorf said, presenting a concept focused on missing-middle for-sale housing — townhomes and condominiums — plus street-level commercial space and public outdoor areas.

The recommendation matters because the HRA recently transferred ownership of the land to the city; the City Council will accept that transfer and, if it concurs with the HRA, will negotiate a purchase contract with the selected team. Neuendorf said the HRA’s role emphasized financial and program outcomes while the city’s role will handle regulatory approvals, and he said staff anticipates bringing a formal contract in late September.

Commissioner Jackson asked how the city would preserve long-term affordability for the affordable for-sale units proposed in the concept. “They're for sale. Do we have, as a city, the mechanism to make sure that those are affordable into the future?” Jackson asked. Neuendorf replied that the city can use legal agreements to lock in resale pricing, noting the city has used similar contract language on past condominium projects and would adapt that model here.

Neuendorf told the HRA the 3-acre site sits just west of Highway 100 behind Jerry's Foods. Offers received in the procurement ranged from just over $1 million to nearly $6 million, and proposed densities ranged from about 20 units per acre to just over 70 units per acre. The staff-recommended concept favors a lower “missing middle” scale; per current city policy, the proposal would include 10% of units priced for sale at about 80% of area median income (AMI).

Chair Hovland and several commissioners discussed timing and governance. One commissioner urged staff and legal to consider whether and when to transfer title from the HRA to the city because the city will both regulate land use and, once transferred, be the seller. Neuendorf said staff will review the timing with legal counsel and that the next formal step is a city contract and the city’s development-review process, including sketch-plan submittal, rezoning if needed and site-plan approvals.

A motion to “recognize the development team consisting of Hempel Real Estate, Monarch Development, Jester Concepts and Rokos Advisors as the recommended development team to potentially purchase and redevelop the property at 5146 Eden Avenue and authorize staff to prepare a sale agreement for future consideration” was moved by Commissioner Jackson, seconded by Commissioner Pierce and approved by the HRA.

Next steps described by staff include preparing a formal sale agreement for city council consideration, the developer producing sketch plans for Planning Commission review, and ongoing public engagement. Neuendorf and the HRA emphasized that the recommendation does not authorize a sale; final sale and development approvals will follow the city’s standard regulatory and contractual review.