Edina council approves redevelopment agreement for 7200 France Avenue, greenlights SPARC funding amid transparency concerns

The Edina City Council on Jan. 7 approved a redevelopment agreement and a first amendment for the 7200 France Avenue Apartments, voting to move forward after a lengthy public and council debate over the use of one-time SPARC funds and how affordable units are described in project documents. Member Agnew moved to approve the agreements and Member Pierce seconded; the council voted in favor and the motion carried.

Council debate centered on transparency and the substance of the affordable-unit commitments. Council Member Amber Risser said she voted against the HRA action and asked why the publicly posted exhibit lacked minimum unit-size details. "One bedroom plus den could be a 400 square foot unit," Risser said, pressing staff for clarity about what residents would receive for nearly $4.8 million in SPARC funds. Risser also noted the public would expect clarity before the council voted.

Jay Lindgren, special counsel for economic development with Dorsey & Whitney, said the discrepancy was a drafting error in an exhibit and that the body of the redevelopment agreement (section 4.4) specifies the affordable-unit distribution to be recorded with the declaration after project completion. "It is a nonsubstantive error," Lindgren said, adding the recorded declaration must meet the unit distribution approved by the HRA. Stephanie Hawkinson, the city's affordable housing development manager, told the council the project faced a $4,800,000 financing gap and that SPARC funds were recommended because TIF notes pledged to 7250 France were not available to cover 7200 France.

Staff laid out alternatives, including returning unspent SPARC money to the county (which staff said would amount to about $1.6 million to the city) or using SPARC locally to support both parcels and accelerate tax increment returns (staff estimated approximately $3.7 million in excess increment could come to the city over a 10-year period if the project proceeds). City economic development manager Bill Nundorff described SPARC as a one-time, state-authorized use of unallocated TIF funds intended to catalyze private investment while delivering public benefits.

Council members framed the choice as a long-term fiscal trade-off and a land-use decision. Several members said they supported the project because staff demonstrated a public benefit — redevelopment of a vacant, blighted parcel, enclosure of parking, and 15 units of affordable housing "that will be affordable in perpetuity." The council approved the redevelopment agreement and the amendment by voice vote; staff said recorded documents will be required to show the affordable-unit mix reflected in the agreement.

The council's action concludes the city's approval step; the recorded declaration and subsequent certificate-of-completion process will be the mechanism staff described for ensuring the built project conforms to the redevelopment agreement. The matter was approved during the Jan. 7 meeting and no amendment to the council's approval was made on the record.