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Residents at Edina HRA meeting press city for answers on Business Innovation Lab closure
Summary
Two residents told the Edina Housing and Redevelopment Authority on Feb. 27 that the Edina Business Innovation Lab has closed and alleged a city loan default; staff said the chamber sent a membership message claiming the lab closed, that the chamber has not issued a full press release, and that the city has not declared a loan default but will investigate and report back.
Two Edina residents used the Housing and Redevelopment Authority's Feb. 27 public-comment period to demand more transparency and accountability over the status of the Edina Business Innovation Lab.
David Frankel, who identified himself as living on Lakeview Drive, told the HRA he believed "the lab has closed and they're defaulting on their loan" and said the city should issue a press release about the project and any money the city lent. Frankel also said, "This is a taxpayer investment of probably close to $1,000,000," a figure he attributed to his own understanding of city exposure.
Another caller, Andy Brown of Park Place, echoed that request and asked for detail on how much the city has provided from various funding sources including grants and ARPA funds, and "who's being held accountable" if money cannot be recovered.
Economic development manager Neuendorf responded that the loan was made to the Edina Chamber of Commerce and that "they have not defaulted on it. There is the full intention to repay the loan," but he said the chamber had told the city the program was "in a state of flux" and that the chamber had indicated it was considering shutting down that portion of its operations. Neuendorf said staff have asked the chamber to make an announcement when a final decision is reached and that the city would look into the matter in more detail and report back at the next meeting.
A staff member also told the HRA that the chamber sent a message to members stating the Innovation Lab "has closed," though that membership message did not include a press-release-style explanation or a closing date.
The HRA directed staff to gather more information and placed an Innovation Lab update on the agenda for the next meeting. The record shows resident claims about closure and dollar amounts but staff statements that the chamber has not issued a formal press release and that the loan has not been declared in default.
What happens next: staff said they will seek additional information from the chamber, provide an update at the next HRA meeting and, at the request of members, supply a copy of the chamber's message to the council.
