Edina council advances multiple France Avenue development steps: property transfer, TIF amendments and study of a pedestrian underpass

The Edina City Council on Aug. 19 approved a package of actions and next steps tied to redevelopment along the France Avenue corridor, including accepting city ownership of a former public works site, extending deadlines for a large redevelopment, recognizing state-authorized extensions of two tax-increment financing (TIF) districts, and directing staff to pursue preliminary engineering for a pedestrian underpass beneath France Avenue.

Economic development manager Bill Neuendorf told the council the city intends to transfer ownership of the old public-works property at 5146 Eden Avenue from the Housing and Redevelopment Authority (HRA) to the city so net proceeds from any eventual sale would flow to the city rather than the HRA. Neuendorf said staff expects to present a real estate contract with a developer in September or October. The council adopted resolution 2025-568 to accept the transfer; the motion carried.

The council also approved first amendments to three redevelopment agreements for 7235 France Avenue that extend certain contractual completion dates so the developer can close on the property later than originally planned. Neuendorf said the amendment adds nine months to the developer’s schedule; council approved the amendment by a 4–1 vote, with Member Risser voting no. The amendments maintain the previously agreed-upon project scope and tax-increment support.

On related financing matters, the council voted 4–1 to approve two resolutions recognizing special laws passed by the Minnesota Legislature that allow more time and a longer maximum duration for two TIF districts (the Seventieth and the Seventy-Second and France Avenue districts). Neuendorf said the special laws permit the city to extend usual TIF deadlines in the future — a decision that would require separate approvals by the HRA, the city council, the school board and Hennepin County before any district extension would take effect.

Council members discussed the tax-base figures cited by staff. Member Risser asked about an economic-benefit chart that showed a $12.1 million figure; staff replied Hennepin County’s 2025 estimated market value for the land is roughly $15 million and that the base value used for TIF will be set when the district is certified after a closing. Neuendorf explained: “At this point we have not yet certified the district… we expect to certify the district most likely the day after they close in September. That will lock in the base value.”

Separately, after several hours of public outreach and preliminary design work, staff recommended advancing a concept for a pedestrian underpass beneath France Avenue at the 70th Street area. Manager Neuendorf described renderings and said the concept emphasizes width, natural light and safety to reduce the “dark, narrow tunnel” effect. He recommended moving the concept into preliminary engineering, which would produce engineering plans that can be presented to Hennepin County (owner of the roadway), provide detailed cost estimates and make the project eligible for state, regional and federal funding.

The council voted to accept the staff report and authorize staff to notify adjacent developers of the city's intention to study the underpass, solicit proposals for preliminary engineering, refine design and costs, and pursue funding. The motion passed 4–1, with Member Risser voting no. Neuendorf said preliminary engineering would likely cost “a couple hundred thousand dollars” and staff proposed using non-levy funding sources (including available TIF balances) rather than the city’s general levy.

Ending: Staff will return with design contracts, refined costs and any recommended funding sources for council approval once preliminary engineering is complete.