FAQs

No. This is not a new tax. This "Spending Plan" guides how the City/HRA spends a limited amount of property taxes that have already been paid and collected from commercial properties in Edina.

Taxes collected in TIF Districts are highly restricted due to limits on the use of TIF in Minnesota. In some cases, existing TIF Districts held monies but expenditures were hindered by lapsed spending deadlines and other state restrictions. Only monies that had not already been obligated (or pledged) to specific purposes were eligible to be governed by the "Spending Plan".

SPARC is an acronym for Special Projects and Redevelopment Capital.

No. This Spending Plan will not modify the size or duration of Pentagon Park TIF District. Similarly, it will not modify the Southdale 2, 70th & Cahill or Wooddale / Valley View TIF Financing Districts because those Districts have already been de-certified and no longer function as active TIF Districts.

Many commercial projects take longer than expected. The lead time for construction materials can be very slow for some items. Investors remain hesitant to make large investments with ongoing uncertainty about the overall economy.  A 12-month extension to the SPARC program is anticipated to be helpful so that business owners and developers can make strategic decisions without being driven by an arbitrary deadline.

The City has pledged the bulk of the available funds to support a wide variety of programs and projects. They include:

- forgivable loan to renovate an re-open the Edina Theatre and update some of the adjacent City infrastructure (sidewalks, parking garage, etc)

- forgivable loan to the Finch Apartments on 77th Street to construct a new public roadway

- forgivable loan to stimulate construction of The Settings Apartments at 7200 France

- forgivable loan to reduce the need for TIF monies at the pending Enclave apartments at 7235 France

- grant to stimulate renovation and reopening of new cafe at 4408 France Ave

- interest bearing loan to support the renovation of vacant office space to serve as the location of the Edina Innovation Lab and Edina Chamber of Commerce

If additional time and money are available, the City will extend the SPARC program for one more year or until the available monies are expended. There are at least 3 small businesses that have contacted the City about the SPARC program. Each of these face financial challenges due to the high cost of brick and mortar construction. If the SPARC program is extended, those and other small businesses are anticipated to move forward.

If not amended, the SPARC program will be terminated at the end of 2025. Additional businesses will not be served and those commercial spaces will likely remain vacant.  Any remaining SPARC funds are anticipated to be returned to Hennepin County. Those funds will eventually be passed along to the City (approx 1/3), the State (approx 1/3) with the remaining 1/3 retained by the County.