Minnetonka staff unveils 2026–2030 Economic Improvement Program draft; commissioners back more Pathways support

City staff presented the first draft of Minnetonka’s 2026–2030 Economic Improvement Program (EIP) at the May 28 meeting of the Minnetonka Economic Development Advisory Commission and sought commissioner feedback on recommended funding priorities, particularly for housing programs.

Julie (city staff, community development) opened the presentation with an overview of the EIP timeline and fiscal outlook and recommended an HRA levy package that would allocate $175,000 to the Pathways down-payment assistance program, $100,000 to the Minnetonka home enhancement program, and $25,000 for administrative support to Homes Within Reach. Staff said the city’s Affordable Housing Trust Fund has an uncommitted balance of approximately $2.5 million after prior commitments to other projects.

Staff described Pathways as a sliding-scale down-payment assistance program that provides up to $75,000 depending on household income, and reported the program had approximately $73,000 remaining of a previously committed $400,000 allotment. Staff and several commissioners said they supported committing additional trust-fund dollars to Pathways to expand homeownership assistance for lower- and moderate-income households.

Staff explained the newly created Local Area Housing Assistance (LAHA) sales-tax account had its first contribution in the prior winter and the city expects two further payments this year; those dollars carry federal/state reporting and program restrictions and staff said they are inclined to direct LAHA toward a single, large affordable-housing project because multiple small subgrants would complicate reporting. Commissioners asked for more detail about eligible uses and staff said the county will provide technical assistance on accessing consolidated community development block grant (CDBG) funds and on meeting the federal “national objective” tests.

Commissioners and staff discussed whether funds currently committed to Homes Within Reach could be reallocated to Pathways. Staff said previously awarded commitments to an external organization are difficult to rescind, but the uncommitted Affordable Housing Trust Fund balance could be repurposed by council action.

The commission also received a brief “pulse check” on local nonprofits. Staff member Kirsten reported outreach to 14 nonprofits serving Minnetonka residents and summarized a mixed picture: some organizations reported steady or increased giving; others reported declines and concern about federal- and state-level program changes (Medicaid, SNAP, HUD) that could raise demand. Commissioners said the outreach was useful and encouraged continued engagement.

On transit, staff summarized the recently completed transit study and ongoing conversations with Metro Transit about micro-transit and last-mile connections around Opus, Shady Oak and Ridgetale station areas. Staff said Metro Transit plans line testing later this year and that system opening is scheduled for 2027.

The business and redevelopment chapters of the EIP highlighted continued support for regional business attraction (Greater MSP), small-business technical assistance (Elevate Hennepin), and zoning and small-area planning work tied to the city’s zoning rewrite and market analysis. Staff said they will return to the advisory commission in August with a revised draft and forward a recommendation to the city council in September.

Commissioners endorsed staff’s recommendation to pursue additional Pathways funding from the Affordable Housing Trust Fund and asked staff to return with more-specific proposal scenarios and fiscal impacts for council consideration. Staff said they will incorporate commissioner feedback and present an updated EIP to the council at a June 16 study session and to EDAC again in August.