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042390 EDAOfficial File Copy Ager~a #5 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEP/~ COUNTY, MINNESOTA 55428 Regular Ms~t~ #5 April 23, 1990 city Hall President Edward J. Erickson C~m~ssic~er Gary L'Herault Ckamt~=~ic~er Gerald Otten C~mt,~ssioner Marky Williamson 2. 3. 4. 5. e e e Roll Call Approve Minutes of Feb~!ary 26, 1990 Housing Proposal by Harold Teasdale Resolution Rescinding Exclusive Negotiations Agreement with Midwest A3/tomalls, Inc. Resolution Directing Staff to Abandon Em/nent Domain ~ing Identified as District Court File #CD-2141 Involving the Paro's Pub Resolution Providing for Public Hearing on the Pr~ Sale of 4021 Ore~on Avenue North, New Hope, Minnesota (PID #17-118-21 24 0102) Executive Session Reqa~ Medicine Lake Road Street Project (Project #396) lO. ~dj ournment Fe~ 26, 1990 City ~z~]], 7:30 P.M. President Erickson called the meeting of the Econ~c Develo~t Authority to o _rde_~ at 7:30 p.m. Present: Erickson, L'Herault, Enck Absent: Otten, Williamson approve the EDA mi/lutes of February 12, 1990. All present voted in favor. Mayor Erickson introduced Item 4, Request by Creamettes to Consider Expansion of Manufacturing Facilities at 7300 36th Avenue North. Mr. Donahue stated that representatives fa~ the Crea~et~ C~ are present. He stated they are asking the City to consider a major expansion project. He explained that the reason the item is before the E~A rather than tb~ Planning O~mLdssion at this time is that Creamette C~ r~s advance consideration by the EDA. He expla' _1~_ that he ba~ met with Creamette's and suggested that they make a presentation of their proposal to the E~A. Mr. Do~ahue stated the c~ is also askin~ that the City consider sram develo~ incentives. He explained that they are reviewing a few different locations for their plant expansion. Mr. Sandy Ackerberg, Architect for the proposed project, and Mr. Steve Fawro, Director of Manufacturing of Borden Pasta Group, were recognized and presented drawings of the proposed expansion. Also in a~_,'x~ was Mr. D~ Lite-er, O~rati~s and Plant Engineer. Mr. Favro explained that Pasta sales represent a large portion of the Borden C~'s 8 billion dollar sales. F~ explained that the New Hope facility is the sixth lar~ employer in the city and with the pr~ expansion it my be the fifth largest employer. He stated the existir~ plant is the fourth largest pasta manufacturer in the United States and with the expansion it would be the second or third largest plant in the U.S. Mr. Ackexberg stated the present land ar~a has ap~~tely 709,000 sc~ feet. ~ existi~ k~di~ is appz~tely 176,000 feet. He explained that the phase I addition would add 65,000 February 26, 1990 square feet to the plant and phase II addition would add 95,000 sc~m~e feet. He explained that even though the plant is of a large size it employs a limited amount of employees due to the nature of the production facilities. They currently have 160 people employed and with the expansion may employ 40-50 more people. He stated the number of employees has an affect on the amount of parking. He stated Creamettes encourages its employees to carpool. Mr. Ackerberg c~Lm~nt~ that 185 million pounds of pasta are currently prudu~ and with the expansion it would be incre~ed to 300 million pounds. Mr. Favro provided the Council with statistical information. He expl~ that the Creamette Cc~par~ paid $177,000 in real estate taxes for 1989; has a current New Hope payroll of $3,500,000; employs 160 employees; anticipates adding 40-50 employees; has an ann~,al volu~e of raw materials and services purdmased frc~ local vendors of $10,500,000; has an approx/~ate current build/n~ size of 177,000 s~m~e feet; and with the anticipated additions (both Phase I a~d Pb~_~-~e II) ~ould enlarge it by 159,525 sc~,a~e feet. He also c~mLent~_ that the Creamette Cc~0any generates a substantial amount of business for local restaurants, hotels and transpo~tion vendors resultir~ frc~ visits to the local plant frc~ out-of-state staff, te~hni~ ~z~xmel a~ visitors. President Erickson in~]~ed of the projected timetable for the expansion(s). Mr. Ack~ stated Phase I would be~in immediately. warehouse dock doors would be eliminated. ~nis wuuld eliminate the truck traffic on the east side of the building adjacent to the residential pro~_rty. All the truck traffic would be confined to the south and west. He stated Phase II w~uld be~in two to four years following Phase I. He stated_ Phase III is a long-range plan a~ would ~ asking the City's assistance in providing the site and' relocating the ocoamnt of the site (Rainbow Inc). Mr. Ackerberg c~,~nt~_ that the New Hope code restri~ building cover-~3e exneed/ng forty percent of the lot area. He explained that the Phase I and Phsse II additions would exceed the code re~]~-nt Mr. Ackerber~ next discussed the park/rig situation and referred to the code requirement. He stat~ 100 parking stalls is the maximum number necessary based on the number of Creamette's employees. He commented that he could provide proof of parking availability for an additional 224 vehicles. This w~uld assure the City that there is adequate roc~ for parking in the event that the building use changes single or double decked. He stat~ the zoning oode re~,~es 35 percent green area coverage. A variance would be re~,~ed since they are short by one percent. New Hc~e E~A Page 2 Febz~a~y 26, 1990 C~m~issi~ Enck ~ that it appears Creamette's would need financial assistance (TIF), a parking lot variance, and eventually some assistance in lar~ acquisitic~ of the Rainbow Property. Mr. Acke~ stated there are many benefits of the expansion (Creamette's would continue to be in business in New Hope, would continue to generate a substantial payroll, would continue to pay real estate taxes, would provide additional employ, plus the other ancillary benefits which flow f~-~ the operation which cannot Mr. Favro informed the ~ that he ~ an ir~icatic~ of whether the City would cc~sider Creamette's expansion project pertaining to Phase I, Phase II, assistance in obtaining the adjacent property, option would be for Creamette's to relocate. He stated that many states have indicated willingness to neqotiats on properties and have offered substantial benefits. President Erickson advised Mr. Favro that he favors the proposed residential h~mes in that area. He stated this would elim/nate the truck traffic on the east side of the ~dir~ adjacent to the residential prope~. Mr. Erickson c~m~ted that at this time he cannot guarantee that all the variances wuuld be grant_~_, but he does not feel any of the requests are ~le. He c~m~nted that tb~ City would like the Creamette Company to remain in New H e. Mr. Erickson r~mark~_ that there is a definite possibility to use Mr. Acker~ c~ented that tb~ plant is a very clean operation with no toxic waste. He stated it only emits sc~e water vapor into the air and the truck traffic is relatively mild. (k~m~ssi~ Enck cKmi,~J~ed that he would like the expansion and feels the City is in the capacity to neqotiate with Creamette's. New Hope ~n~ Page 3 February 26, 1990 I~m5 for the sewer line. Mark Hanson, City Engineer, responded that wo.tld be over $200,000. Mr. Donahue stated that in order to use TIF he r~x~s to know the value of the project. Mr. Favro stated he could provide that informatic~. City Attorney, Steve Sondrall, o~m~arfced that it would have to be set up as an econmfic developmnt d/strict. President Erickson informed Mr. Ackerberg that the next step w~uld be to se~rt preparir~ final plans ar~ meet with the Planning C~m,d~sion. Mr. Ikx~ahue state-d__ one of the proposals c~ the state legislature's e~hle is the elimination of the ~c develc~ment distri~. He suggested initiating the p~ for a tax increment district to at least have the project in process. He reo~L,,~/zled adopting a resolution at the next meeting. Mr. Ackerberg urged Mr. Donahue to proceed with preparinq a resolution to be adopt__-d__ at the next meeting. President Erickson introduced for discussion Item 5, Consideration of Request by Autc/~aUS/~lcm~s Boettcher to Assist in Financing the Acquisition of P~ Located at 7675 42r~ Avenue North (New Hope Animal Hospital - Planning ~-~e #89-24). and will try to contact others to ask for their cooperation in assisting with this project. He remark~ that if a settlement will not be able to proceed with the project. Motion was made by C~,=dssioner L'Herault, seconded by C~m~Hssioner Enck to adjourn the meetir~. All present voted in favor. The New Hope E~A adjourned at 8:25 p.m. Valerie Leone city Clerk New Hope EDA Page4 Feb~mry 26, 1990 EDA iREQUF~T FOR ACTION Originating Department Approved for Agenda Agenda Section 4-23-90 Manager /~-~ Item No. / By: / The Minnesota Attainable Housir~ Corporation is proposir~ to purcb~-~e and They are a non-profit o~ganization whose aim is buying multi-family bonds frc~ the city ar~ use the bor~ proceeds to buy and rehab t_he projects. They will also create a '9~using coopera~ve" which in effect creates tax advantages to tb~ owners by lowerir~ the tax rate to that of homesteaded properties. MOTION BY SECOND BY TO: Review: Administration: Finance: RFA-O01 ~ MINNESOTA ATTAINABLE HOUSING CORPORATION AFFORDABLE MULTIFAMILY HOUSING April 10, 1990 New Hope Economic Development Authority City of New Hope 4401 Xylon Avenue N. New Hope, Minnesota 55428 Attention: Dan Donahue Mr. Donahue: I am enclosing data on Minnesota Attainable Housing Corporation and its proposal to purchase and operate two apartment projects in New Hope. We have tentatively negotiated purchase agreements on these two projects and are looking for tax exempt inducement resolutions to enable MAHC to purchase and refinance the projects. We are enclosing an analysis which we believe show the impact on the various recipients of tax dollars if taxes are reduced. We believe that the enclosed documents make the case in general terms for what MAHC is proposing to d~ with existing apartments. The two projects here, Wincrest Apartments and Parkridge Apartments, appear to be on similar tracks. Wincrest is now having improvement money put into it, though we feel it needs more than is currently planned. Each project is about 20 years old and each has been serving lower income residents. Each has the potential to be improved and each has the potential to eventually go downhill as the metro area demographic trend of a decreasing number of rental families continues. Projects which have intervention now can survive and be an asset to the community. Investment money is basically not going into rental projects of this type. A non-profit such as ours is one of the few entities which we believe can create long-term stability for them. We do not believe that either project will survive without (1) rehabilitation and (2) a mechanism to equalize 4530 Excelsior Boulevard · Minneapolis, Minnesota 55416 Telephone (612) 927-4403 taxes paid with those paid by homeowners. The community does have the assurance that money will continually be put back into the property for maintenance and improvements. In addition, we believe that it is essential that the residents take a more active role in creating their rental community as one which they are proud of, feel secure in and can affect the cost and quality of. We believe our proposal ultimately will enhance New Hope and specifically the areas around each of these complexes and be less expensive overall, then better things occur as we believe they inevitably will. our request is for an inducement for tax exempt bonds which our organization can then use to finance the purchase and rehabilitation. We do appreciate the opportunity to present our proposal. HT:pi enclosure MINNESOTA ATTAINABLE HOUSING CORPORATION AFFORDABLE MULTIFAMILY HOUSING DETAILS OF PROPOSED PURCHASE AND REHABILITATION WINCREST Purchase Price * Rehabilitation Cost Financing Costs Reserves $3,035,000 $ lO0,O00 $ 201,425 $ 28,575 Total Bond Amount $3,365,000 *Note: With an additional $100,000 from Rental Rehabilitation Program. PARKRIDGE Purchase Price * Rehabilitation Cost Financing Costs Reserves $4,300,000 $ 150,000 $ 350,000 $ 100,000 Total Bond Amount $4,900,000 *Note: With an additional $150,000 from Rental Rehabilitation Program. 4530 Excelsior Boulevard · Minneapolis, Minnesota 55416 Telephone (612) 927-4403 ANALYSIS - TAX IMPACT OF LEASEHOLD COOPERATIVES Wincrest Apartments Parkridge Apartments Minnesota Attainable Housing corporation is proposing to convert two projects to leashold cooperatives within the City of New Hope. The purpose of this conversion is for rehabilitation and maintenance of the projects as low and moderate income rental units. The impact on the City of New Hope appears to be as follows: Wincrest Analysis Current Tax $117,860 $1,091 per Unit Recipient Current of Tax $ Taxes Percent Leasehold Reduction Taxes County $30,953 26.3% $7,738 $23,215 New Hope 18,993 16.1% 4,748 14,245 Sch. Dist 61,670 52.3% 15,418 46,253 Hennepin 1,026 0.9% 257 770 Spec. Tax 5,218 4.4% 1,305 3,914 Parkridge Analysis Current Tax $179,169 $1,127 per Unit Recipient of Tax $ Current Percent Leasehold Reduction Taxes Taxes County New Hope Sch. Dist Hennepin Spec. Tax $47,121 26.3% $11,780 $35,341 28,846 16.1% 7,212 21,635 93,705 52.3% 23,426 70,279 1,613 0.9% 403 1,209 7,883 4.4% 1,971 5,913 The tax change essentially puts the residents on the same basis as homeowners. Prepared by Harold Teasdale 04/10/90 EDA )l~mr FOR ACTION Originating Department Approved for Agenda Agenda Section Manager 4-23-90 EDA By: Dan Donahue By: 5 ! RESOLUTION RESCINDING EXCLUSIVE NEGOTIATIONS AGREEMENT WITH MIDWEST AUTOMALLS, INC. Midwest Automalls does not intend to pursue the project at 7180 42nd Avenue North. Staff recommends adoption of the resolution. M(XI~ON BY SECON'D BY ~A-OO 1 ~ ADril 20, 1990 Mr. Daniel J. Donahue City Manager City of New ~ope 4401 Xylon Avenue North New Hope, MN 55428 RE: Resolutions Recinding Automall Agreement and Abandoning "Total Take" Condemnation - Paro's Pub Our File Nos. 99.11056 and 99.53007 Dear Dan: Please find enclosed proposed Resolutions for consideration at the April 23rd EDA meeting in connection with recession of the Automall agreement and abandonment of the Paro's Pub condemnation. The exclusive negotiation agreement we have with Automall provided for its termination 90 days after its execution. It was executed on March 27, 1989. The agreement has been expired for some time. The agreement also provided that neither party would have any obligation to the other in the event of the agreement's termination. As a result, the resolution rescinding the agreement will have little affect other than to officially indicate for the record that the agreement is no longer effective or binding on either party. Since we do not have a developer for the Paro's site, it is my understanding that we will be abandoning the "total take" condemnation action. I want to remind you that such an action will subJe¢= the EDA to a possible claim for costs and attorney's fees by Mr. Lasky under authority of Minn. Stat. S117.195. The enclosed Resolution directs me to aband~ the condemnation. Please contact me if you have any questions. Very truly yours, St en A. Sondrall Enclosures APR--20--90 FR I 11 : 28 CORR I CK R~S0~UTION NO. 90- RESOLUTION RESCINDING EXCLUSIVE NEGOTIATIONS AGREEMENT WITH AUTOMALLS, INC. W~ERE%.~, the Economic Development Authority in and for the City of New Hope (hereafter EPA) entered into an March 27, 1989 Exclusive Negotiations Agreement with Midwest Automalls, Inc. (hereafter Midwest) for the development of the "Paro's Pub" site legally described as follows and located in the City of New Hope: Lot 33, Auditor's Subdivision Number 324, Hennepin County, Minnesota, and WHEREAS, said agreement was entered into pursuant to the authority of EDA Re~olution No. 89-_____ adopted at the EPA meeting of March 27, 1989, and WHEREAS, the agreement is conditional upon and subject to the f~liowing terms: Satisfactory agreements can hereafter be reached from time to time between the parties for Developer's purchase o= other acquisition from the EPA Of necessary portions of the Project Site; Terms and conditions, including timing, upon which the EPA will acquire and sell to the Developer such lands within the Pro~ect Site as may be necessary for the Developer ko undertake and complete the Pro~ect. It is the intention of the Parties that this Agremeent shall lead to negotiation and execution of a mutually satisfactory Phase II Agreement for the Project prior to the termination date of this Agreement. Unless otherwise extended by written agreement between the Parties, negotiations hereunder shall continue for a period of 90 days following execution hereof. The Developer may extend the term of this Agreement for an additional 30 days by giving written notice of its desire to so extend the Agreement to the EDA within the initial 90 day period, provided, that the Agreement will be extended only if the EDA reasonably finds that the Developer has diligently undertaken and pursued its oblige=ions under this Agreement. If a Phase II Agreement for the Project is not satisfactorily APR--20--90 FR I I I : 28 cORR I CK & SONDRALL P . 04 ~ negotiated and execute4 within the period of this Agreement, as the same may be extended, the obligations of either party to one another shall terminate and neither shall incur any obligation to the other, neither at law or in equity, and WHEREAS, none of the aforedescribed conditions have been satisfied. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope that the March 27, 1989 Midwest Automalls, Inc. Exclusive Negotiations Agreement is hereby rescinded and that the Executive Director is hereby instructed to inform Midwest Automalls, Inc. accordingly by providing it with a certified copy of this Resolution. Dated this 23rd day of April, 1990. Edward J. Erickson, Presiden~ Attest: Dani~£ J. Donahue, Executive Director E DA III } REQUEST FOR tCTION Originating Department Approved for Agenda Agenda Section iDA Manager 4-23-90 ,f,/~ Item No. By: Dan Donahue ~: 6 RESOLUTION DIRECTING STAFF TO A~BANDON EMINENT DOMAIN PROCEEDING IDENTIFIED AS DISTRICT COURT FILE #CD-2141 INVOLVING THE PARO'S PUB PROPERTY Since Midwest Automalls will not be pursuing the project, the EDA does not need to obtain title of the property through eminent domain proceedings. Staff recommends adoption of the resolution. MOTION BY SECOND BY TO: Review: Administration: Finance: RFA-O01 ~ APR--20--90 FR I 11 : 29 cORR ICK & $ON~RALL P . 05 RESOL~IO~ NO. 90-__ RESOLUTION DIRECTING STAFF TO ABANDON EMINENT DOMAIN PROCEEDING IDENTIFIED AS DISTRICT COURT FILE NO. CD - 2141 INVOLVING THE PARO'S PUB PROPERTY WHEREAS, the Economic Development Authority in and for the City of New Hope (hereafter EDA) directed staff to initiate eminent domain proceedings to acquire fee title to the property known as Paro's Pub, legally described as follows, per its Resolution No. 87-2 adopted at its January 26, 1987 meeting: Lot 33, Auditor's Subdivision Number 324, and WHEREAS, a Petition commencing said action was duly filed and served and an Order dated September 28, 1989 was issued by ~ennepin County District Court finding a valid public purpose for said taking per Distric: Court File No. CD - 2141, and WNEREAS, the EDA undertook to acquire the property for the purpose of promoting development along 42nd Avenue North within its Redevelopment District 85-2, to-wit: the construction of an 1,800 square foot auto-oriented retail/service mall, and WHEREAS, the Developer of the proposed auto-oriented retail~service mall has informed the EPA it is no longer interested or willing to complete the project and has allowed its agreement with the EPA to terminate and be rescinded, and WHEREAS, the EDA now finds & public purpose no longer exists for the acquisition of the subject property. NOW, THEREFORE, BE IT R~SOLVED by the Economic Development Authority in an4 for the City of New HOpe that the City Attorney is ~ereby directed to take all ~he necessary steps to abandon the condemnation proceedings identified as DiStric~ Court File NO. CD - 2141. Dated this 23rd day of April, 1990. Edward J. Eri~kson, President Attest: Daniel J. Donahue, Executive Director EDA REQUF T FOR ACTION Originating Department Approved for Agenda Agenda Section Manager 4-23-90 EDA / ~ Item No. By: Dan Donahue ~: 7 RESOLUTION PROVIDING FOR PUBLIC HEARING ON THE PROPOSED SALE OF 4021 OREGON AVENUE NORTH, NEW HOPE, MINNESOTA (PID #17-118-21 24 0102) The public hearing date will be set for May 14, 1990, at 7:00 p.m. MOTION BY SECOND BY TO: Review: Administration: Finance: RFA-O01 ~ APR--20--90 FR I i I : $0 CORR I CK & $ONDRALL P . 06 gAVONNI I, KIIKI SHARON ~, NOle~I'AD Ap:il 19, 1990 Hr. Daniel $. Donahue City Manager City of New Hope 4401 xylon Avenue North New ~ope, MN 55428 Sale of 4021 Oregon Avenue North Our Pile No. 99.11061 Dear Dan: In conneu~ion with the above-referenced sale, enclosed please find the original of a Resolution Providing for a Public Hearing on the Proposed Sale of 4021 Oregon Avenue North, New Hope, Minnesota. Please place this Resolution on =he agenda for =he EDA meeting scheduled for April 23rd, 1990. We will insure the notices reach the New Hope-Golden Valley Post in time for the May 2nd, 1990 edition. Please contact me if you have any questions. Sincerely, Martin P. Malecha s3w Enclosure cc: Steven A. $ondra11, Esq. APR--20--90 FR I I I : ~ CORR I CK ~ $OHDRALL P . 07 aE$O~UTIOR ~0. 90- RESOLUTION PROVIDING FOR PUBLIC ~EARING ON THE PROPOSED 8ALE OF 4021 OREGON AVENUE NORTH NEW HOPE, MINNESOTA PIP %17-118-21 24 0102 BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That i~ accordance with the EDA Rental Management Housing Disposi=ion Program, the EDA has identified an eligible buyer for the housing uni~ at 4021 Oregon Avenue North, legally described as followsl Lot 14, Block 7, Rockford Park, PID #17-118-21 24 0102 2. That Minnesota Statutes 469.105, Subd. 2 requires that sale of property owned by the ~DA can occur only after a public hearing to consider the sale. 3. The City Clerk is authorized and directed to cause notice of the time, place and purpose of said meeting to be published at least 10 days prior to the meeting in the New Hope Golden Valley Post News. Such notice shall be in substantially the following form: See attached. 4. All persons interested are invited Co appear at said hearing for the purpose of being heard. Dated the 23rd day of April, 1990. President Attest: APR--20--90 FR I 11 : ~ 1 cORR I CK & SONDRALL P . 08 ~ NOTICE OP PUBLIC ~EARING ON SALE OF PROPERTY OWNED BY THE NEW HOPE EPA AT 4021 OREGON AVENUE NORTH Economic and Dev.e!opmept Authority In And For Cit~ of New Hope~ Minnesota 1. Notice is hereby given that the Economic and Development Authority in and for the City of New Hope, Minnesota, will meet on the 14th 4ay of May, 1990 at 7:00 o'clock p.m. a~ the City Hall, 4401 Xylon Avenue North, in said City for the purpose of holding a public hearing on a proposed sale of a single-family residential dwelling located at 4021 Oregon Avenue North and legally described as follows: LOC 14, Block 7, Rockford Park. 2. Any person wishing to review the pu=¢hase agreement cOntaining the terms and conditions of the proposed sale prior to the hearing may do so at the New Hope City hall Monday through Friday during regular business hours. 3. At the public hearing'=he EDA will determine whether the proposed sale is advisable. 4. All persons interested are invited to appear at said hearing for the purpose o~ being heara with respect to the proposed sale of 4021 Oregon Avenue North. Dated the 23rd day of April, 1990. Valerie Leone City Clerk (Published in the New Hope-Golden Valley Post the 2nd day of May, 1990). EDA 1REQUF~T FOR ACTION Originating Department Approved for Agenda Agenda Section Manager 4-23-90 ~ff~ Item No. By: Dan Donahue By: 8 EXE(//fIVE SESSION REGARDING MEDICINE LAKE ROAD STREET PRfkTELT (PR~/ECT #396) Our City Attorr~y will discuss settlements reqarding properties affected by the project. MO/~ON BY SECOND BY TO: Review: Administration: Finance: RFA-O01 ~