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Council approves sale of 5146 Eden Avenue to Hempel/Monarch team for $4 million
Summary
The Edina City Council voted to approve a purchase-and-development agreement for the 3.3-acre former public works site at 5146 Eden Avenue, selecting a Hempel Real Estate–Monarch Development Partners team. The contract locks in a $4 million purchase price, staged earnest money, a roughly 12‑month closing timeline and either on‑site affordable units or a $40,000-per‑unit fee‑in‑lieu.
The Edina City Council on March 17 approved a purchase-and-development agreement to sell the 3.3-acre former public works site at 5146 Eden Avenue to a development team led by Hempel Real Estate and Monarch Development Partners.
Economic Development Manager Bill Neuendorf told the council the city reviewed 11 proposals before recommending the Hempel/Monarch-led team and described the contract terms. “Their purchase proposed price is 4 million dollars,” Neuendorf said during the presentation.
The contract gives the selected team an exclusive right to pursue entitlements and negotiate a site plan. It establishes a two-step due-diligence process that stages earnest money (an initial $50,000 deposit with an additional $150,000 due after preliminary approvals) and a roughly 12‑month window before a closing can occur. The agreement also includes a buyback option the city may exercise if the developer fails to finish portions of the site within five years.
On affordable housing, the contract presents two alternatives: require some units to be built at an affordable price on site, or accept a fee in lieu. Neuendorf said the developer believes the fee option is more realistic given condominium fee and financing pressures; that fee is set in the contract at $40,000 per unit. Neuendorf said the city would deposit any fee payments into its affordable housing trust fund to support affordable projects elsewhere.
Council members pressed for contractual safeguards and clarity on exit points. Councilmember Agnew and others walked through the steps the developer must complete before closing, including sketch plan review, preliminary rezoning and final site plan approvals. Neuendorf noted the city retains regulatory control over rezoning and site-plan approvals: the contract secures the developer’s right to pursue entitlements, not automatic approvals.
Developers in the audience said the team intends a phased build that begins with a visible anchor on the southern portion of the site—a restaurant and adjacent townhomes—to establish market interest. The contract requires a phased construction plan tied to pre‑sales for owner-occupied units.
Councilmember Pierce moved to adopt Resolution 2026‑16 to approve the sale and the development contract; Councilmember Agnew seconded. The motion passed by voice vote among members present: Mayor Hovland and Councilmembers Agnew and Pearson voted yes. The contract directs staff to carry out the terms and return to the council and planning commission for the required entitlement hearings and approvals in the months ahead.
What happens next: the developer will pursue sketch-plan review and preliminary zoning, seek financing and market pre-sales. If the developer secures the necessary approvals and financing, closing is expected in about a year; otherwise the city may terminate the agreement under the contract’s contingencies.
The council’s approval starts a standard entitlement process: planning commission feedback, public hearings and subsequent council votes on any rezoning or site-plan approval needed to move construction forward.
