Edina HRA approves resolution to amend SPARK spending plan for three TIF districts

The Edina Housing and Redevelopment Authority voted to approve Resolution 25-08 on Sept. 25 to amend the spending plan for three tax increment financing (TIF) districts, a step that will trigger a public hearing before the city council.

Economic development manager Bill Neuendorf told the HRA the change would recognize roughly $775,000 in interest earnings on previously collected but unspent TIF dollars and extend the SPARK program created under 2021 state legislation. Neuendorf said the amendment would increase the program’s budget to about $10.3 million and would allow staff to continue allocating funds to previously pledged projects and to a streamlined small-business capital grant program.

Neuendorf outlined how the SPARK funds have been used to date, citing investments in the Edina Theatre restoration, new restaurants, the Edina Innovation Lab, Finch Apartments and other projects. He said approximately $9.2 million of the original $9.5 million had been spent or pledged and that extending the program by one year responds to project timing and recent state changes in 2025 that allow cities to use interest earnings.

Commissioners asked for clarifications during the discussion. Commissioner Agnew asked whether interest earnings would be returned if unused; Neuendorf said interest earnings would remain within the TIF framework and, for decertified districts, would be returned to Hennepin County for redistribution under state law. Commissioner Reusser urged more information about prior TIF uses, questioned whether SPARK funds layered on top of existing TIF commitments constituted “double dipping,” and asked for details on the affordable units and specifics of prior pledges.

Neuendorf responded that SPARK funds were intended to be used “in lieu of” some TIF dollars on certain projects — meaning a dollar of SPARK reduces a dollar of TIF committed to the same project — and described contract and performance mechanisms that prevent automatic payment if a developer does not meet milestones. He also said that unspent monies would likely be returned to the county and redistributed if not invested locally.

On a motion by Commissioner Agnew, seconded by Commissioner Pierce, the HRA voted to approve Resolution 25-08 by voice vote. Commissioner Reusser recorded a dissenting "nay"; the chair declared the motion passed. Neuendorf said the HRA’s approval initiates the next steps: a public hearing in October and final consideration by the city council in early November.

The resolution is a procedural step to allow use of the SPARK interest earnings and an extension of the program; it does not itself authorize final contracts or payments. Those specific contract approvals will return to the HRA or city council for action at public meetings.