012290 EDAOfficial
File Cops
m:$eada #2
CITY OF N~W ~OPE
4401 XYLON AV~qUE NC~H
HENNEPIN COUNTY, MINNESOTA 55428
EDA Regular Meeting #2
Jar~,a~y 22, 1990
City ~a] 1
President Edward J. Erickson
~ioner Gary L'Herault
C~m.,,~ssioner W. Peter Enck
C~m'~ssioner Gerald Often
1. Call to Order
2. Roll Call
3. Approve Minutes of January 8, 1990
4. O0~sidex~tion of Vacation of Right-of-Way Located at 7180 42nd Avenue
North (Paro's Pub)
6. Adj ou~ m~nt
CITY OF N~ ~PE
4401 XYLf~ AV~3E ~
~ (/X~Uf, ~ 55428
Jar~m3ry 8, 1990
City ~1], 8:00 P.M.
APPROVE
M/]FOTES OF
[~DC. 26, 1989
Item 4
President Erickson called the meeting of the Economic Development
Authority to order at 8:00 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamson
Motion byCcmmissionerEnck, seconded byCul~ut~ssionerOttento
approve the ~nAminutes of December 26, 1989. All present voted in
favor.
President Erickson introduced for discussion Item 4, Consideration
of Request by Autohaus/Thomas Boettcher to Assist in Financing the
Acquisition of Property Located at 7675 42ndAvenue North (New Hope
Animal Hospital).
Mr. Dan Donahue stated one possibility for financing is the creation
of a tax increment project. He stated the EDA could consider the
tax increment generated by the project as security. He c~m¥~nted
that at this time the market value of the Autohaus property is
unknown. Mr. Donahue stated upon completion of the development
project (including the Animal Hospital property and School District
property) based on an estimated projection there may be $10,000 of
increment.
Mr. Thomas Boettcher was recognized and stated he does not believe
he could take a second or third mortgage as security. He stated he
is willing to put additional capital down on the property amounting
between $45-50,000. He stated the remaining $100,000 loan would be
set for an eight-year term or possibly six years. He c~t.~ented that
he is considering renting the front part of the building for another
year to generate rental income.
Mr. Donahue stated the TIF project would only be used as a back-up;
if Mr. Boettcher cannot carry out the terms of the loan then this
guarantee would be available.
C~t~,~ssioner Enck co~mt~nted that Mr. Boettcher's life insurance
policy would only be good only if he passes away and if the
premiun~ are paid in full for the entire period. He stated if
Autohaus goes out of business the life insurance policy would be of
no value.
New Hope EDA
Page 1
January 8, 1990
Mr. Donahue stated bond counsel is necessary to discuss whether this
project is feasible. He stated he would like to meet with Mr.
Boettcher to address the financing arrangement package. He stated
he also must meet with the City Attorney regarding legal issues.
Motion made by C~m~,~ssioner Enck, seconded by C~L,,~,~ssioner Otten to
authorize the Exmcutive Director to proceed. All present voted in
favor.
President Erickson clarified that the EDA has given the Executive
Director direction to proceed and the EDA is willing to enter into
a type of financial arrangement with Mr. Boettcher.
Executive Director, Dan Donahue, stated that he will present the
details to the EDA on January 22, 1990.
Motion was made by C~,,L,~ssioner Enck, seconded by Cul~.L,~ssioner Otten
to a~curn the meet/r~. All present voted in favor. The New Hope
EDA adjourned at 8:25 p.m.
Rmspectfully submitted,
Val~ie ~
Ci~ Cl~k
New Hope EDA
Page 2
January 8, 1990
REQUF T FOR ACTION
Originating Department Approved for Agenda Agenda Section
Management Assistant F. DA
1-2 2-90 Item No.
By: Jeannine Dunn By: 4
CONSIDERATION OF VACATION OF RIGHT-OF-WAY LOCATED AT 7180 42ND
AVENUE NORTH (PARO'S PUB)
On July 24, 1989, the EDA closed the public hearing on the
vacation of right-of-way located adjacent to the property ~t
7180 42nd Avenue North (Paro's Pub). The EDA elected to table a
decision on the issue until January 22, 1990.
Staff requests that the item be tabled until March 26, 1990.
MOTION BY ~)~ ~C_.~ SECOND BY ~-~'~-~
Review: Administration: Finance:
RFA-O01 ~