Edina Weighs Tax Increment Financing for Redevelopment of Macy’s Site

The Edina Housing and Redevelopment Authority (HRA) meeting on October 10, 2024, was dominated by discussions on the proposed redevelopment of the Macy’s Home Store site on France Avenue, particularly focusing on the use of Tax Increment Financing (TIF) to bridge a financial gap.

Central to the meeting was the exploration of TIF as a financial mechanism to facilitate the redevelopment of the eight-acre Macy’s site. The current Macy’s Furniture Store is slated for relocation, creating an opportunity for new development. The economic development manager outlined the financial challenges, noting a $23 million funding gap that TIF could potentially cover. The redevelopment project’s total cost is projected to be just under $300 million, with TIF covering approximately 7.7% of this, aligning with common practices to keep TIF under 10% of total costs.

A significant portion of the discussion focused on the potential consequences if TIF were not utilized. The development team stressed that without TIF, the project would struggle to proceed as planned. They acknowledged that simplifying the project by reducing the number of phases or merging buildings could lower construction costs, but this might also lead to design compromises, such as eliminating an underpass connection that currently complicates the site layout.

The sustainability requirements also introduce additional costs, with $1.2 million identified for compliance with city policies, including solar installations.

The meeting also broached the broader implications of TIF on the city’s tax structure. Concerns were voiced regarding the potential impact on future tax levies, with some raising the possibility that TIF could strain the city’s general fund in the short term, despite long-term community benefits. Historical precedent was cited, comparing the Macy’s project to previous successful developments that utilized TIF, such as the transformation of a site at 50th and France.

In addition, the discussion highlighted the need for a decision, driven by a January 10 deadline for the purchase agreement on the Macy’s site. This urgency prompted suggestions for alternative site plans that could simplify the project, making it more feasible under constrained financial circumstances.

The authority expressed a desire for transparency in the project’s financial and logistical elements, advocating for a collaborative approach among city officials, developers, and the community to reach a consensus.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
:

Housing Authority Officials:

Receive debriefs about local meetings in your inbox weekly:

Trending meetings
across the country:

Meeting Date
Filter by bodytypes
Agricultural Advisory Committee
Airport Advisory Board
Art and Culture Board
Beach Committee
Bike and Pedestrian Advisory Committee
Board of Elections
Board of Health
Borough Council
Building Committee
Cannabis Control Board
Cemetery Commission
Charter Revision Commission
Child and Family Services Board
City Council
City Identity Committee
Code Enforcement Board
College Board of Trustees
Community Appearance Board
Community Preservation Committee
Community Redevelopment Agency
County Council
Disability Advisory Committee
Economic Development Board
Elderly Affairs Board
Electric Advisory Board
Environmental Commission
Financial Oversight Board
Historic Preservation Commission
Housing Authority
Human Relations Committee
Human Resources Committee
Insurance Fund
Land Use Board
Library Board
Licensing Board
Mental Health Commission
Municipal Alliance
Open Space Commission
Oversight and Review Committee
Parent Advisory Board
Parking Authority
Parks and Gardens Commission
Parks Commission
Pension Board
Planning Board
Police Review Board
Port Authority
Property Assessment Board
Public Safety Committee
Recreation Commission
Redevelopment Agency
Rent Control Board
Rent Leveling Board
School Board
Sewerage Authority
Shade Tree Commission
Special Magistrate
Taxation & Revenue Advisory Committee
Tourism Board
Trails Committee
Transportation Board
Utility Board
Value Adjustment Board
Veterans Committee
Water Control Board
Women's Advisory Committee
Youth Advisory Committee
Zoning Board
Filter by County
FL
Bay County
Bradford County
Brevard County
Broward County
Clay County
Duval County
Escambia County
Gulf County
Hendry County
Highlands County
Hillsborough County
Indian River County
Lake County
Lee County
Leon County
Levy County
Liberty County
Manatee County
Marion County
Martin County
Miami-Dade County
Monroe County
Okaloosa County
Orange County
Osceola County
Palm Beach County
Pasco County
Pinellas County
Polk County
Putnam County
Santa Rosa County
Sarasota County
Seminole County
St. Johns County
Taylor County
Volusia County
Walton County
MA
Barnstable County
Berkshire County
Bristol County
Essex County
Franklin County
Hampden County
Hampshire County
Middlesex County
Norfolk County
Plymouth County
Suffolk County
Worcester County
MN
Anoka County
Becker County
Beltrami County
Benton County
Blue Earth County
Brown County
Carver County
Cass County
Chippewa County
Chisago County
Clay County
Cook County
Crow Wing County
Dakota County
Freeborn County
Goodhue County
Grant County
Hennepin County
Isanti County
Itasca County
Kanabec County
Kandiyohi County
Koochiching County
Lac Qui Parle County
Lyon County
Mcleod County
Morrison County
Mower County
Nicollet County
Olmsted County
Pipestone County
Polk County
Ramsey County
Rice County
Scott County
Sherburne County
Sibley County
St Louis County
Stearns County
Steele County
Waseca County
Washington County
Wright County
NJ
Atlantic County
Bergen County
Burlington County
Camden County
Cape May County
Cumberland County
Essex County
Gloucester County
Hudson County
Hunterdon County
Mercer County
Middlesex County
Monmouth County
Morris County
Ocean County
Passaic County
Somerset County
Sussex County
Union County
Warren County
NY
Bronx County
Kings County
New York County
Queens County
Richmond County
TN
Shelby County
Filter by sourcetypes
Minutes
Recording