Some Edina residents wonder why the city government supports tax incentives for the redevelopment of some of the city’s best real estate areas.
Edina’s Housing and Redevelopment Authority (HRA) on Thursday approved nearly $23 million in tax increment financing (TIF) to fund a proposed $300 million project on the 8-acre site currently home to Macy’s Furniture Gallery.
It is the latest proposed mixed-use redevelopment along busy France Avenue near the Southdale Center and Galleria shopping centers, where a high-rise apartment building and other projects are transforming the neighborhood.
There are still numerous hurdles to overcome before the project can be implemented, but some residents believe tax incentives should not be part of the plan at all.
“It’s a gift to the developer,” said Ralph Zickert, an Edina resident who repeated what he told the city council during a forum on Aug. 7. “It’s one of the best pieces of land in the city. It’s underused. It’s not dilapidated.”
TIF is a tax incentive that uses future property taxes to finance the development of distressed properties that would not otherwise receive investment. It can also be used to finance amenities such as walking trails and public gathering spaces that Edina needs for projects like the one proposed for the Macy’s site.
Bill Neuendorf, the city’s economic development manager, said Edina is working to protect taxpayers by ensuring developers meet all the conditions of their TIF agreements before receiving reimbursement, which include public amenities, infrastructure improvements or affordable housing units.
