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1989 EDA PacketsOFFICIAL FILE COPY CITY OFNEWHOPE 4401XYLONAVENUENORFH HENNEPINOOUNTY, MINNESOTA55428 March 27, 1989 Edward J. Erickson George Daly W. Peter Enck Gerald Otten Marky Williamson e Se e Call to Order Roll Call Organizational Resolution of the Board of Coim~Hssioners of the Economic Development Authority in and for the City of New Hope, Minnesota, and Appointing Officers Resolution Accepting Control, Authority andOperation of Housing and Redevelopment ProjectNos. 80-1, 81-1, 82-1, 85-1, 85-2, and86-1 and Tax Increment District Nos. 1600 through 1606 ~solution Approving Midwest Management Exclusive Negotiations Agreement and Authorizing President and Executive Director to Sign EDA Manager BY: Apprc~e~ for Agenda 3-27-89 Agenda Section EDA It~ No. Daniel J. Donahue By: 3 o~--J~ZA~OTfE~ ~?~SOLUTION /OF T~E BOARD OF CO~ISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA AND APPOINTING OFFICERS This resolution sets forth organizational and operational standards of the EDA. The resolution proposes that the officers of the EDA be appointed as follows: President - Edward J. Erickson Vice-President/Treasurer - W. Peter Enck Secretary/Assistant Treasurer - Daniel J. Donahue The resolution also appoints Daniel J. Donahue as Executive Director, and Valerie Leone as Clerk. Staff recommends approval of the resolution. Adminis~on Fir~nce RFA-O01 EDA REsOLuTION NO. 89- ORGANIZATIONAL RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA AND APPOINTING OFFICERS BE IT RESOLVED by the Board of CommissiOners (the "Board") of the Economic Development Authority in and for the City of New Hope, Minnesota (the "EDA"), as follows: 1. Recitals. Ail actions required by the applicable provisions of Economic Development Authorities, Minnesota Statutes, Sections 469.090 to 469.108 inclusive, have been duly taken in order to create, constitute and activate the EDA. 2. Appointment of Officers. In accordance with Minnesota Statutes, Section 469.092, the Board hereby appoints to the following offices of the EDA the following persons, respectively: President: Edward J. Erickson Vice President: W. Peter Enck Secretary: Daniel J. Donahue Treasurer: W. Peter Enck Assistant Treasurer: Daniel J. Donahue 3.. Adoption of By-Laws. In accordance with Minnesota Statutes, Section 469.096, the Board hereby adopts By-Laws in the form attached hereto as Exhibit A. 4. Appointment of Executive Director and Clerk. That pursuant to Section 2.8 of the By-Laws, Daniel J. Donahue is hereby appointed Executive Director of the EDA and pursuant to Section 2.9 of the By-Laws, Valerie Leone is hereby appointed Clerk of the EDA. 5. Execution of Checks. That pursuant to Section 4.3 of the By-Laws, checks shall be executed by the Treasurer and Assistant Treasurer. 6. Effective Date. This resolution shall be effective as of the date the resolution of the New Hope City Council activating the EDA becomes effective. Adopted by the Council this 27th day of March, 1989. Edw. J. Erickson, President Attest: Daniel J. Donahue, Secretary Exhibit A BY-LAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA 1. The Authority Section 1.1. Name of the Authority. The name of the Authority shall be the Economic Development Authority in and for the City of New Hope, Minnesota (hereinafter the "Authority"), and its governing body shall be called the Board of Commissioners (hereinafter the "Board"). Section 1.2. Office. The principal office of the Authority shall be the New Hope City Hall. Section 1.3. Seal. seal. The Authority shall have an official 2. Organization Section 2.1. Officers. The officers of the Authority shall consist of a President, a Vice President, a Secretary, a Treasurer, an Assistant Treasurer, an Executive Director, and a Clerk. The President, the Vice President, and the Treasurer shall be members of the Board and shall be elected annually, and no Commissioner may serve as President and Vice President at the same time. Th~ offices of Secretary, Assistant Treasurer, Executive Director and Clerk need not be held by a Commissioner. Section 2.2. President. meetings of the Board. The President shall preside at all Section 2.3. Vice President. The Vice President shall preside at any meeting of the Board in the absence of the President and may exercise all powers and perform all responsibilities of the President if the President cannot exercise or perform the same due to absence or other inability. Section 2.4. President Pro Tem. In the event of the absence or inability of the President and the Vice President at any meeting, the Board may appoint any remaining Commissioner as President Pro Tem to preside at such meeting. Section 2.5. Treasurer. The Treasurer shall receive and be responsible for Authority money, shall disburse authority money by check only, keep an account of all Authority receipts and disbursements and the nature and purpose relating thereto, shall 1 file the Authority's financial statement with its secretary at least once a year as set by the Authority, and be responsible for the acts of the assistant treasurer. Section 2.6. Assistant Treasurer. The Assistant Treasurer shall have all the powers and duties of the Treasurer if the Treasurer is absent or disabled. Section 2.7. Secretary. In the absence of the Clerk, the Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The Secretary shall also have such additional duties and responsibilities as the Board may from time to time and by resolution prescribe. Section 2.8. Executive Director. The Executive Director shall be appointed by resolution and shall serve at the pleasure of the Board of Commissioners,'shall be the chief appointed executive officer of the Authority, and shall have such additional responsibilities and authority as the Board may from time to time by resolution prescribe. Section 2.9. Clerk. The Clerk shall be appointed by resolution of the Board and shall be the official recording officer of the Authority and the Board. The Clerk shall be responsible for recording and maintaining accurate records of the meetings of the Board and of all official actions taken by or on behalf of the Authority. 3. Procedures of Board of Commissioners Section 3.1. Annual Meeting/Regular Meeting- The annual meeting of the Board shall be held on the second Monday of the month of January in each year immediately after adjournment of the New Hope city Council meeting. Said meeting shall also constitute the Board's regular meeting except for additional regular meeting dates as shall be designated by the Board by resolution. Section 3.2. Special Meetinqs. Special meetings of the Board may be called by the President or, in the event of the President's absence or inability, by the Vice President at any time, upon three days prior notice to all Commissioners and the Clerk and Executive Director. Upon the same notice, special meetings of the Board may also be called by any two Commissioners. The Clerk shall post notice of any special meeting in the principal office of the Authority no less than three days prior to such special meeting. Section 3.3. Quorum. ~ A quorum of the five member Board shall consist of three Commissioners. In the abse~nce of a quorum, no official action may be taken by, on behalf of, or in the name of the Board or the Authority. Section 3.4. Adoption~ of Resolutions. Resolutions of the Board shall be deemed adopted if approved by not less than a simple majority of all Commissioners present. Resolutions may but need not be read aloud prior to vote taken thereon and may but need not be executed after passage. Section 3.5. Rules of Order. The meetings of the Board shall be governed by the most recent edition of Robert's Rules of Order. 4. Miscellaneous Section 4.1. Fiscal Year. shall be the calendar year. The fiscal year of the Authority Section 4.2. Treasurer's Bond. The Treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the Authority and filed with the Secretary'.and must be for twice the amount of money likely to be on hand at any one time as determined at least annually by the Authority, provided, however, that said bond must nog exceed $300,000.00. Section 4.3. Checks. An Authority check must be signed by the Treasurer and one other official named by the Authority in a resolutiOn. The check must state the name of the payee and the nature for which the check was issued. Section 4.4. Financial Statement. The Authority shall examine the financial statement together with the treasurer's vouchers, which financial statement shall disclose all receipts and disburs~nents, their nature, money on hand and the purposes to.which it shall be applied, the Authority's credits and assets and its outstanding liabilities. If the Authority finds the financial statement and treasurer's vouchers to be correct, it shall approve them by resolution. Section 4.5. Report to Cit~. The Authority shall annually make a report to the City Council giving a detailed account of its activities and of its receipts and expenditures for the preceding calendar year. Section 4.6. ~ud~et to Ci~. The Authority shall annually send its budget to the City Council which budget includes a written estimate of the amount of money needed by the Authority 3 from the City in order for t'he Authority to conduct business during the upcoming fiscal year. Section 4.7. Transfer of Personnel. Notwithstanding any other law or charter provision to the contrary, the City Council may, by resolution, place any employees of the Housing and Redevelopment Authority under the direction, supervision or control of the Authority. This transfer of personnel does not affect the rights of any employees of the housing and redevelopment authority. The employees shall become employees of the Authority. Section 4.8. Employees. The Authority may employ an executive director, a chief engineer, technical experts and agents and other employees as it may require and determine their duties, qualifications and compensation. Section 4.9. Services. The Authority may contract for the services of consultants, agents, public accountants, attorneys and others as needed to perform its duties and to exercise its powers. The Authority may also use the services of the City Attorney. Section 4.10. Supplies, Purchasing, Facilities and Services. The Authority may purchase the supplies and materials it needs. The Authority may use the facilities of the city's purchasing department. The City may furnish offices, structures and space, stenographic, clerical, engineering and other assistance to the Authority. Section 4.11. Execution of Contracts. All contracts, notes, and other written agreements or instruments to which the Authority is a party or signatory or by which the Authority may be bound shall be executed by the President and the Executive Director or by such other Commissioners or officers of the Authority as the Board maY by resolution prescribe. Section 4.12. Amendment of By-Laws. These By-Laws may be amended by the Board by majority vote of all the Commissioners, provided that any such proposed amendment shall first have been delivered to each Commissioner at least five days prior to the meeting at which such amendment is considered. Dated: , 1989. Edw. J. Erickson, President Attest: Daniel J. Donahue, Secretary EDA originating Manager Daniel J. Donahue Approved for Agenda 3-27-89 By: ~ 4 CONTR(XL, Agenda Section EDA Item No. RESOLUTION ACCEPTING AUTHORITY AND OPERATION OF HOUSING AND REDEVELOPMENT PROJECT NOS. 80-1, 81-1, 82-1, 85-1, 85-2, AND 86-1 AND TAX INCREMENT DISTRICT NOS. 1600 THROUGH 1606 This resolution accepts control, authority, and operation of the HRA's tax indrement financing districts. Staff recommends approval of the resolution. MOTION BY TO: SECOND BY Administration Finance RI:'A-O0 ! EDA RESOLUTION NO. 89- RESOLUTION ACCEPTING CONTROL, AUTHORITY AND OPERATION OF HOUSING AND REDEVELOPMENT PROJECT NOS. 80-1, 81-1, 82-1, 85-1, 85-2 AND 86-1 AND TAX INCREMENT DISTRICT NOS. 1600 THROUGH 1606 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority in and for the City of New Hope, Minnesota (the "EDA"), as follows: 1. Recitals. Ail actions required by the applicable provisions of Economic Development Authorities, Minnesota Statutes, Sections 469.097 to 469.108 inclusive, have been duly taken'in order to create, constitute and activate the EDA. 2. Accepting Project Control, Authority and Operation. In accordance with Minnesota Statutes, Section 469.094, the Board hereby accepts control, authority and operation of Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2 and 86-1 and Tax Increment Financing District Nos. 1600 through 1606, located within Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2 and 86-1. The Board also agrees that it covenants and pledges to perform all terms, conditions and covenants initiated and entered into by the Housing and Redevelopment Authority in and for the city'of New Hope concerning all bond issues and related agreements pertaining to Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2 and 86-1 and Tax Increment Financing District Nos. 1600 through 1606. 3. Effective Date. This resolution shall be effective as of the date adopted by the EDA. Adopted by the Board of the EDA this 27th day of March, 1989. Edward J. Erickson, President Attest: Daniel J. Donahue, Secretary Manager By.- Dan Donahue - EDA Approve~ for Agenda By: 3-27-89 Agenda Section Item No. 5 PROPOSAL BY DICK CURRY Mr. Curry wishes to address the c~issioners on a proposal to develop the Minnegasco property at 39th and Winnetka and the church property at 36th and Winnetka. The church is proposed to move to the front part of the Minnegasco property and the original church property be developed for colt~ercial purposes. MOTION BY TO: Administration Finance RFA-O01 EDA City Manager By: Dan Donahue Approve~ for Agenda Agenda Section EDA Item No. 6 _3-27-89 RESOLUTION APPROVING MI~EST MANAGEMENT EXCLUSIVE NEGOTIATIONS AGREEMENT AND AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN This agreement defines the responsibilities of the EDA and Midwest Mjanagement in developing an Automall on the property located on the north side of 42nd Avenue between Nevada and Louisiana Avenues. This agreement will be superseded by a Development Contract in the future. Staff recommends approval of the resolution. Administration Finance RFA-O01 EDA RESOLUTION NO. 89- RESOLUTION APPROVING MIDWEST MANAGEMENT EXCLUSIVE NEGOTIATIONS AGREEMENT AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN WHEREAS, the Exclusive Negotiations Agreement between the Economic Development Authority (EDA) in and for the City of New Hope and Midwest Management has been prepared and presented to the EDA. NOW, THEREFORE, BE IT RESOLVED by the EDA that the Midwest Management Exclusive Negotiations Agreement is hereby approved and the President and Executive Director are authorized to sign. Adopted by the Economic Development Authority in and for the city of New Hope this 27th day of March, 1989. President Attest: Executive Director MIDWEST AUTOMALLS, INC. EXCLUSIVE NEGOTIATIONS AGREEMENT THIS AGREEMENT dated this day of , 1989, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, a Minnesota municipal corporation (hereinafter "EDA"), and MIDWEST AUTOMALLS, INC., a Minnesota corporation (hereinafter "Developer"); WITNESSETH; WHEREAS, the EDA desires to promote development within the established Development District No. 85-2 consistent with the Development District Program and Tax Increment Financing Plan adopted by the Housing and Redevelopment Authority in and for the City of New Hope on December 23, 1985, and as thereafter amended; and WHEREAS, on , 19 , the Developer submitted to the EDA a written proposal for development of an area ("project site") of Development District No. 85-2; and WHEREAS, the Developer's proposal, as it may be further amended or supplemented (hereinafter "Project"), contemplates construction of approximately 18,000 square feet of commercial space for auto-oriented retail/service businesses on the Project Site, the approximate boundaries of which are set forth in "Exhibit A" hereto; and WHEREAS, said development further contemplates the incorporation of the existing Crown Auto and Cook's Automotive facilities into the overall development of the site and that the incorporation of these facilities into the proposed development is an intergal reason why the EDA was willing to enter into this agreement with Developer; and WHEREAS, the Project has been reviewed by interested persons in the community, who have favorably recommended to the EDA that the Developer be designated to develop the Project Site; and WHEREAS, the EDA has reviewed the Project and concurs that the Developer should be designated to develop the Project Site, under such terms and conditions as may be established by further negotiations during the term of this Agreement between the Parties; and 1 WHEREAS, the EDA and the Developer (hereinafter referred to jointly as the "Parties"), ~.are willing and desirous to undertake development of the Project? provided that: (a) satisfactory agreements can hereafter be reached from time to time between the Parties for Developer's purchase or other acquisition from the EDA of necessary portions of the Project Site; (b) a satisfactory agreement can hereafter be reached between the Parties to establish the level of public improvements to be provided by the EDA for the project; (c) the Developer can secure satisfactory financing sufficient for the portions of the Project to be undertaken by it; (d) a satisfactory agreement can hereafter be reached between the Parties to establish the level of public assistance, if any, to be provided to the Project; (e) the EDA is satisfied that the Project is economically feasible and in the best interest of the public. NOW, THEREFORE, in consideration of the mutual covenants of the Parties hereto, IT IS AGREED between the Parties as follows: 1. During the term of this Agreement, or any mutually agreed extension thereof, the Parties shall use all reasonable effort to attempt to negotiate and formulate a definitive development contract (hereinafter "Phase II Agreement") which shall provide for the development of the Project and shall, at a minimum, contain the following: (a) Terms and conditions, including timing, upon which the EDA will acquire and sell to the Developer such lands within the Project Site as may be necessary for the Developer to undertake and complete the Project. (b) Terms and conditions concerning the scope and timing of construction of the Project by the Developer and of any public improvements to be constructed in connection with the Project. (c) A statement of the nature and amount of any security to be furnished to the EDA to protect the EDA's financial investment in the Project before and after completion of the Project. (d) Such other terms and conditions as may be agreed upon by the Parties. It is the intention of the Parties that this Agreement: (a) shall document the present understandings and commitments of the Parties; and (b) shall lead to negotiation and execution of a mutually satisfactory Phase II Agreement for the Project prior to the termination date of this Agreement. Said Phase II Agreement (together with any other agreements entered into between the Parties hereto contemporaneous therewith), when executed, shall supersede all obligations of the Parties hereunder and constitute the entire agreement between the Parties hereto. 3. 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 obligations under this Agreement. If a Phase II Agreement for the Project is not satisfactorily negotiated and executed 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. 4. During the term of this Agreement, the Developer shall: - (a) provide to the EDA, within 30 days of execution of this Agreement, a definitive description of the lands comprising the Project Site which need to be acquired by the City or the Developer; (b) provide to the EDA, within 60 days of execution of this Agreement, preliminary development of the schematics and designs presented to the EDA; (c) provide to the EDA, within 60 days of execution of this Agreement, a preliminary design proposal and a cost analysis projection for the design and construction of the Project. The proposal shall show the location, size, and nature of the Project, including floor layouts, outline specifications and other graphic or written explanations of the Project, shall be accompanied by a time schedule for all phases of development, and shall show and be compatible with any public improvements to be constructed adjacent to or as part of the Project, including the public improvements contained in the Development District Program; (d) lease's; seek preliminary commitments for retail tenant (e) undertake and obtain such other preliminary economic feasibility studies, income and expense projections and such other economic information which can be prepared by the developer or market consultants as may be reasonably required by the EDA to confirm the economic feasibility and soundness of the project; (f) within 60 days of execution, submit to the EDA for review a Project financing plan which shows the Developer's ability to finance the Project and includes: (i) a market study for the retail prepared by the Developer or market consultant; and (ii) executed agreements or letters of intent with prospective tenants of the Project; and (iii) such other evidence as may be reasonably required by the EDA to demonstrate that the Project will be economically successful and that the EDA's investment will be protected; provided same can be prepared by Developer. (g) furnish to the EDA such information or documentation as may be required by the EDA to identify the legal entity constituting the Developer, the identity of the Developer's principal owners and the legal relationships of such principal owners; (h) furnish to the EDA or its designated financial consultant such information as the EDA may reasonably request. However, Developer will not be required to make Financial Statements available on individuals or privately held companies owned or controlled by Developer. If final developer is not a signatory to this agreement, the preceding sentence is void. 5. During this period of this Agreement, the EDA shall, concurrently with the Developer's performance described in paragraph 5 herein: (a) obtain appraisals of the fair market value of any land or interest in land contained within the Project Site need to be acquired by the EDA on behalf of the Developer; (b) obtain its best estimate of the cost of relocating present occupants of the Project Site; (c) develop a financial plan for the EDA's participation, if any~ in the Project and construction of associated public improvements, which plan shall document all public costs, projected public revenues, and bond financing (including debt service) costs; (d) reasonably Cooperate with the Developer in meeting the Developer's obligations hereunder; and (e) nothing contained herein shall supersede the obligations of the EDA or the developer contained in any future agreement regarding so-called tax increment financing. 6. It is expressly understood that the subsequent execution and implementation of Phase II Agreement between the Parties shall be subject to: (a) the EDA's informed judgment that its undertakings thereunder are feasible based upon estimated tax increment revenues and are consistent with the purposes and objectives of the Development District Program; (b) the Developer's determination that the agreed upon real estate tax level on the Project Site will not unduly burden the economic feasibility of the Project; (c) the determination that an adequate time schedule to govern their respective undertaking may be agreed upon between the Parties; and (d) the determination by both Parties, in light of all the facts and circumstances, that undertaking of the Project is in the best interest of both Parties. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE By: Edward J. Erickson Its President By: Daniel J. Donahue Its Executive Director MIDWEST AUTOMALLS, INC. By ItS OFFICIAL FILE COPY CITY OFNEWHOPE 4401XYIDN AVENUE NOR~H HENNEPINODUNTY, MINNESOTA55428 Agenda, #2 EDA Regular Meeting #2 April 10, 1989 city H~l Edward J. Erickson George Daly W. Peter Enck Gerald Otten Marky Williamson 1. Call to Order 2. Roll Call 3. Approval of Minutes of March27, 1989 4. Resolution Accepting Control, Authority and Operation of Housing and Redevelopment ProjectNos. 80-1, 81-1, 82-1, 85-1, 85-2, and86-1and Tax Increment District Nos. 1600 through 1606 6. Ax]j o~t 4401 XYIE~ AV~qUE ~ ~ (XIR~'f, MINNESOEA 55428 Ma~ 27, 1989 City Hall, 10:15 P.M. N~ HOPE Item3 EDAm89-1 OON~OL OF HRA PROIECTS Ite~4 Chairman Erickson called the meeting of the Economic Development Authority to order at 10:15 p.m. Present: Erickson, Daly, Otten, Enck, Williamson (~lairmanErickson introduced Item3, "Organizational Resolution of the BoardofC~mmissioners of theEconcmicDevelopment Authorityin and forthe City of New Hope, Minnesota and AppointingOfficers,,. Cc~ssionerWilliamsoncommentedthat it appears as thoughthree people willbeholdingfive offices. The City MaD~ger stated the Economic Development Authority (EDA) was set up in the same manner as the Housing & Redevelopment Authority City Attorney, Steve Sondrall, stated that state law specifies a commissioner can hold one or more offices with the exception of President and Vice President offices. He stated that if the EDA chooses, one person may hold more than one office. He stated the only other restrictions are that board members n~st hold the offices of President, Vice President, and Treasurer; however, Secretary and Assistant Treasurer may be held by a non-board member. Co~t,~,~ssioner Enck introduced the foregoing resolution and moved its adoption: "C~GANIZATIONAL RESOLIYl~ON OF ~ BOARD OF fIX~4ISSI~ OF ~tE EO0~C~IC E~gm~n~ ~ IN AND ~R ~tE ~ OF NEW ~DPE, M//qNESOEA AND APPO~ OFFICERS". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Daly~ Otten, Enck, Williamson; and the following voted against the same: None; absent: None; whereupon the resolution w-as declared duly passed and adopt_~, and was signed by the president which ~as attested to by the secretary. Chairman Erickson introduced for discussion Item 4, "Resolution Accepting Control, Authority and Operation of Housing and Redevelopment ProjectNos. 80-1, 81-1, 82-1, 85-1, 85-2, and 86-1 and TaxIncrem~ntDistrictNos. 1600 through 1606". It was determined thatthis resoluti0nwillbeconsideredonApril 10, 1989, se the New Hope City Council may adopt the resolution transferring control of the project numberstotheEDA. New Hope EDA Page 1 March27, 1989 Chairman Erickson introduced item 5, "a Development Proposal by Mr. Dick Curry". Mr. Curry's presentation includes a proposal to develop the Minnegasco property at 39th and Winnetka and the church property at 36th and Winnetka. Mr. Dick Curry was recognized. He stated present at tonight's meeting are members of Holy Nativity Lutheran Church, the Church Board, and Pastor Wall. He stated the proposed plans are to purchase the church property and the Minnegasco property then develop the church property into a shopping center and in turn, develop the church using the westerly four acres of the gas company property. He stated an industrial development is planned for the balance of the gas ccm~any property. He stated the overall plan would be ~o plat the property in two pieces initially (one for the church property and the balance into I-1 zoning as one large lot). He stated he anticipates buildings, user occupied and owned, approximately 10-20,000 s~,a~e feet in size (print shop, electrical shop, etc.) Chairman Erickson explained that no formal action will be taken at tonight's ~eting as this is an informatioD~l public hearing only. Mr. Dean Broden, Chairman of Holy Nativity Lutheran Church Building Coi-miHttee, %fas recognized and stated there are three points he wishes to make. First, Holy Nativity is currently negotiating with Mr. Curry; they have reached an agreement for the purchase of the front four acres of the Minnegasco site and the sale of all of the Holy Nativity holdings, over five acres of the church property located at the corner of 36th and Winnetka. He co~m¥~_nted that there are no signed documents yet. Second, the church has no objection to rezoning of the Minnegasco property to acc~te the development. Third, the church will present the proposed design and construction plans of a new church facility to the City Council as soon as possible. C~¥,~ssioner Williamson inquired whether the church is dealing with Mr. Curry to purchase the Minnegasco property or with Minnegasco directly. Mr. Broden stated they are not dealing with Minnegasco directly, but are dealing with'Mr. Curry, the soon-to-be owner of the property. Mr. Rick Keelor, architect of the proposed church, was recognized and stated he has gone through six different schemes in terms of how the site could be used. He presented preliminary plans to the Co~-,~ssion. He stated one of the changes the Church would like to make is the appearance of the church changing it from an office building appearance to a 'traditional' church appearance. Plans are for a 15,000 square foot church with peaked roofs, etc. He stated an entrance would be from the north and he would like an exit off Winnetka. He explained that parking would be at a 3 to 1 ratio for the 300 seat sanct~ry. New Hope EDA Page 2 March 27, 1989 New Hope EDA Page 3 Commissioner Enck inquired whether the parcel on 36th is sufficient for building. Mr. Keelor responded all the requirements are met. He stated they have allowed generous set-backs and there is plenty of land for placement of both the proposed building and parking. Mr. Broden explained the soil condition of the Minnegasco site. He stated a preliminary report shows that it is good clean soil; however, it may not be compacted enough and may require some fill. As far as the property on 36th and Winnetka, in conjunction with the plan to add a new sanctuary to the northside of their present building, a of soil bearings test was conducted by Brown Engineering, and a copy of that report was provided to Mr. Curry. He stated the soil problem was discovered when the church had plans to add on to the current church. The soil could not be built on in terms of a building. The engineers and architects determined that correction would require removal and replacement of the existing soil. Mr. Broden stated the church had been prepared to do so for placement of an addition. Mr. Broden stated that members of Holy Nativity Lutheran Church and local residents are present who may wish to share their thoughts with the Cu~,,~ssion. He stated some informal discussions with people in the community have been held regarding the proposed development and it appears the public is in favor of the development. Cu~m~,~ssioner Enck inquired how critical the second access is to the south of the property, as far as the church is concerned. Mr. Broden stated the curbcut currently exists and they would like to retain it. He stated it would be advantageous to the-church to have two different accesses, one entrance and one exit. Mr. Dick Curry presented preliminary plans for the shopping center. He stated he does not feel one curbcut on 36th would be adequate due to the anticipated number of the left-hand turns. Mr. Curry stated construction of the church is planned for July and he would like to start construction of the industrial development at the same time. He indicated Holy Nativity would like to retain their current sanctuary until the new one is c~¥~leted which would put the shopping center at a late fall or early spring starting date. He stated he would like the City to grant a form of Tax Increment Financing umbrella for the industrial users so that they would have to come in and apply to the City if they decide they need such aid. He commented he feels extremely confident that the shopping center will successful. Cu~,,~Hssioner Enck c~a~nted that there has been a significant curtailment in the availability and application of tax incTement March27, 1989 financing and he inquired whether Mr. Curry is speaking of a $700,000 involvement by the City. Mr. Curry stated the shopping center may generate $140,000 of new taxes per year. He stated Holmes and Graven will write the overall tax increment plan to be submitted to the City. He stated preliminary discussion has indicated that this plan is very applicable for tax in~t financing as it is redevelopment. Commissioner Enck questioned what type of tenants may be in the co~-plex. Mr. Curry responded that a drug store, a hardware store, a restaurant, and miscellaneous shops are anticipated. Chairman Erickson omm¥~nted t_hat it appears the financial program must be one of the first items to be resolved. Chairman Erickson stated he favors the smaller shops and job- creating facilities verses a warehouse facility. C~mHssioner Williamson inquired regarding Mr. Curry's position of negotiations with Minnegasco. Mr. Curry responded that he has a purchase agreement and explained that progress of the zoning situation has to be made by May 10th or Minnegasco has an option to cancel it. Chairman Erickson introduced for discussion item 6, "A Resolution Approving Midwest Exclusive Negotiations Agreement and Authorizing President and Executive Director to Sign". City Manager Donahue, stated an agreement ham been developed to enter into agreement with Midwest Management for the properties surrounding Nevada and 42nd in developing an Autcmall. He stated the agreement provides 60 days for exclusive negotiations between the city and Midwest Management. During this 60-day period, the City may not consider any other developer. He stated this is a negotiations agreement only; it does not commit to the developmmnt. Jay Schowalter co~nted that he is concerned that the proposed Automall may draw business away from the current auto service related businesses. He expressed that perhaps a business which is not already in the area should be considered such as a restaurant, budget power, etc. Co, t,~,~ssioner Enck stated tb~t it is not the City's obligation to protect businesses as far as competition. He stated the city has advertised and promoted in an effort to receive developers for this site and only one developer has met the criteria for redevelopment. Tom Oestrich, Autohaus representative, stated that he feels the City should keep in mind that there may be other interested developers once the 42nd Avenue development is c~lete. New Hope EDA Page 4 March 27, 1989 RESOLUTION ~ #89-2 Mr. Steve Mattson, an owner of Cook Automotives, stated he is not concerned with the competition of Autcmall. He stated he believes the area will be greatly enhanced by this development. He inquired, however, what other purpose the facility may serve if the automall does not survive. Commissioner Williamson commented that she hopes the City ha~ made every possible effort to ensure that this facility is the best possible business for the site. She inquired whether a budget power or any other developers have been considered. City Attorney Sondrall stated the EDA would have to make a decision as to whether there are any other develops who have come forward to develop that lot. He stated he understands there have been two other developers but neither have mot the guidelines established by the HRA. Cu~,,,LHssioner Daly com~_nted that the City had determined the Paro's Pub lot was too small for a restaurant. Commissioner Williamson inquired whether the only EDA involvement would be condemD~tion. City Ma~ger Donahue stated everything is in place to proceed on condemnation but nothing has been formally set. He stated a condemnation action was initiated two years ago. He stated negotiations with the proposed developer must be resolved to determine what is necessary to acquire the property. Commissioner Otten introduced the foregoing resolution and moved its adoption: '~ESOLUTION APPROV/I~G MTF~g~"T MANAG~4T EXCLL~IVE DIRECI-~R TO SIGNTM. The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Daly, Otten, Enck, Williamson; and the following voted against the same: None; absent: None; whereupon the resolution was declar~. duly passed and adopted, and was signed by the president which was attested to by the secretary. Motion was made by Co~tmdssioner Enck, seconded by Co;tm~ssioner Otten to a~ourn the meeting. Ail present voted in favor. The New Hope EDA adjourned at 11:10 p.m. Respectfully submitted, Dan Don~hue City Manager/Acting City Clerk New Hope EDA Page 5 March 27, 1989 EDA or~tU~ oe~a~u,~t Manager my.- Approved for Agenda · ~0-89 Daniel J. Donahue By: /// R~~%~ ~C--6F~qNG CONTROL,/AUTHORITYV? AND OPE~TIO. OF HOUS~.G AND REDEVELOPMENT PROJECT NO~. 80-1, 81-1, 82-1, 85-1, 85-2, AND 86-1 AND TAX INCREMENT DISTRICT NOS. 1600 THROUGH 1606 Agenda Section EDA Item No. 4 This resolution accepts control, authority, and operation of the HRA's tax increment financing districts. The EDA considered and tabled this resolution on March 27, 1989. Staff recommends approval of the resolution. Administration Finance RFA,O01 EDA R~SOLUTION NO. 89- RESOLUTION ACCEPTING CONTROL, AUTHORITY AND OPERATION OF HOUSING AND REDEVELOPMENT PROJECT NOS. 80-1, 81-1, 82-1, 85-1, 85-2 AND 86-1 AND TAxX INCREMENT DISTRICT NOS. 1600 THROUGH 1606 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority in and for the City of New Hope, Minnesota (the "EDA"), as follows: 1. Recitals. All actions required by the applicable provisions of Economic Development Authorities, Minnesota Statutes, Sections 469..097 to 469.108 inclusive, have been duly taken in order to create, constitute and activate the EDA. 2. Accepting Project Control, Authority and Operation. In accordance with Minnesota Statutes, Section 469.094, the Board hereby accepts control, authority and operation of Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2 and 86-1 and Tax Increment Financing District Nos. 1600 through 1606, located within Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2 and 86-1. The Board also agrees that it covenants and pledges to perform all terms, conditions and covenants initiated and entered into by the Housing and Redevelopment Authority in and for the city of New Hope concerning all bond issues and related agreements pertaining to Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2 and 86-1 and Tax Increment Financing District Nos. 1600 through 1606. 3. Effective Date. This resolution shall be effective as of the date adopted by the EDA. Adopted by the Board of the EDA this 10th day of April, 1989. Edward J. Erickson, President Attest: Daniel J. Donahue, Secretary REAL ESTATE 2506 MONTEREY AVENUE SOUTH EDA City of New Hope 4401 Xylon Ave. N. New Hope, Mn. 55425 ST. LOUIS PARK, MINNESOTA 55416 PHONE (612)922-3334 or 377-1167 April 4, 1989 re: Paros Pub site, 7180 42nd Ave. N. Dear EDA members: At a meeting with Dan Donahue and Miss Dunn today, Dan asked if I would info~n you of our present plans for the Paro site. Without going into history and problems with the present tenants, all of which Dan has in great detail, we are being forced to take possession of the property on or before April 15th. In order to minimize our loss on the attempted tenant cancellation or our cancellation of the lease, we want to put the Paro building to use as quickly as we can. It is our opinion that putting the building to use as a restaurant, of some type, as quickly as we can, and looking to development of the rest of the site later, should be our first consideration. Although we are most interested in developing the site, we would consider a friendly condemnation under the right terms. Because of the recent moves on the part of the tenant, we anticipate an immense amount of litigation in which the City might be involved. Once we have possession of the property, within the next ten days, we will move ahead with our plans as rapidly as possible. Up until February 28th, when we received a lease cancellation notice from the tenants, we were unable to make decisions for the future of the Paro site. Now we can and must act immediately. Sincerely, David Lasky cc/ Dan Donahue REAL ESTATE 2506 MONTEREY AVENUE SOUTH ST. LOUIS PARK, MINNESOTA 55416 PHONE (612)922-3334 or 377-1167 Mr. Dan Donahue, City Manager City of New Hope 4401 Xylon Ave. N. New Hope, Mn. 55425 April 4, 1989 Dear Dan: I just finished a conversation with Jeannine Dunn about the Paro property, and will try to fill you in on what we talked about. My daughter agrees with you that I am sending mixed signals to the City on what we would like to do with the site. Hopefully this letter will clarify our direction. First, we would look favorably on a friendly condemnation on the basis you and I talked about over the past weeks. Secondly, if we cannot agree on these terms, we want to develop the site in the general manner I outlined to you, assuming that we can put the right package together. Thirdly, we are faced with a cancellation of the lease by the tenants, so are moving rapidly to make the existing building produce some income. I hope ~hls is of some help in clearing my-Confusing comments. If you have any questions, please call me. We are making decisions daily about the Paro property. Sincerely, David Lasky ~~ OFFICIAL FILE COPY CITY OFNEWHOPE 4401 XYLONAVENUENO~H HENNEPIN~, MINNESOTA55428 EDA Regular Meeting #3 April 24, 1989 City H~l Edward J. Erickson George Daly W. Peter Enck Gerald Otten Marky Williamson 1. Call to Order 2. Roll Call 3. Approval of Minutes of April 10, 1989 4. Resolution Directing ActingcityClerkto Publish Notice for Public Hearing to Vacate Public Right-of-Way 5. Other Business 6. Adjournment CITY OF 4401 ~ AV~2~OE ~ (II~'f~, M]]9~X~Z% 55428 aprJ_l 10, 1989 City ~ll, 8:25 P.M. APPROVE MINUTES OF MARl2{27, 1989 N~ ~0PE Item4 #89-3 President Erickson called the meeting of the Economic Development Authority to order at 8:25 p.m. Present: Erickson, Daly, Otten, Enck Absent: Williamson Motion byCo~at~ssionerEnck, seconded byCo~ssionerOttento approve theEDAminutesofMarch27, 1989. All present voted in favor. President Erickson introduced Item 4, "Resolution Accepting Control, A3athority and Operation of Housing and Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2, and 86-1 and Tax Increment District Nos. 1600 through 1606. O~m¥,~ssioner Enck introduced the foregoing resolution and moved its adoption: '~ESOI/IiTON AOC~PI~]~G O0N~L, ~ AND OP~%TION OF ~C~3~IN~ AND ~]EVEID~ ~ NO~. 80-1, 81-1, 82-1, 85-1, 85-2, AND 86-1 AND TAX ~ D~CT N0~. 1600 ~ 1606". The motion for the adoption of the foregoing resolution was seconded by Co~t,,,,~ssioner Otten, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Daly, Otten, Enck; and the following voted against the same: None; absent: Williamson; whereupon the resolution was declared duly passed and adopted, and was signed by the president which w-as attested to by the secretary. City Manager Donahue stated two letters were submitted by Mr. Iasky; one letter was addressed to the EDA and the other to himself. The letters were reg~ding the Paros Pub Site, 7180 42nd Avenue North. Co~,~,~ssioner Enck stated the letter of April 4, 1989, addressed to Mr. Donahue outlined three items. First, that Mr. Ta.~ky would look favorably on a friendly condemnation. Secondly, if an agreement cannot be reached, they w~nt to develop the site in the manner discussed with Mr. Donahue (orally). And, thirdly, faced by the cancellation of the lease by his tenants they must move rapidly to make the existing building produce some income. Motion made by Commissioner Enck, seconded by Co~m¥,~ssioner Daly to accept the letters submitted by Mr. ~-~ky raking them a part of the E~A record. All present voted in favor. New Hope EDA Page 1 April 10, 1989 Motion was made by C~,,~,~ssioner Enck, seconded by Co;~muissioner Daly to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:30 p.m. p~~tted, Dan Donahue City Manager/Acting City Clerk New Hope Page 2 April 10, 1989 Approve~ for Agenda Manager By: Daniel J. Donahue RESOLUTION DIRECTING ACTIN~CITY CLERK TO PUBLIC HEARING TO VACATE PUBLIC RIGHT-OF-WAY By: ~4-89 Agenda Section EDA Itu No. PUBLISH NOTICE FOR This resolution authorizes a public hearing for May 22, 1989, to consider vacation of right-of-way no longer needed by the City of New Hope. The right-of-way is located adjacent to the property at 7180 42nd Avenue North (Paro's Pub). Staff recommends approval of the resolution. MOTION BY TO: Administration Financ~ EDA RESOLUTION NO. 89- RESOLUTION DIRECTING ACTING CITY CLERK TO PUBLISH NOTICE FOR PUBLIC HEARING TO VACATE PUBLIC RIGHT-OF-WAY BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope, Minnesota, as follows: WHEREAS, the Housing and Redevelopment Authority in and for the City of New Hope (hereinafter the HRA) has commenced redevelopment along 42nd Avenue North as part of Redevelopment Project 85-2, and WHEREAS, more specifically, as part of said redevelopment the HRA has caused a reconstruction of Nevada Avenue North so that said public street would be realigned at its intersection with 42nd Avenue North, and WHEREAS, as a result of the realignment of Nevada Avenue North a significant portion of the existing public right-of-way is no longer required for public use, and WHEREAS, authority and control for all Redevelopment Projects including Project 85-2 have been transferred to the Economic Development Authority in and for the City of New Hope (hereinafter EDA) pursuant to HRA Resolution No. 89- , City Council Resolution No. 89- , and EDA Resolution No. 89- , and WHEREAS, the EDA hereby determines it would be in the best interests of the City of New Hope to vacate that portion of the public right-of-way no longer required by the City so that the adjacent property located at 7180 42nd Avenue North, commonly known as the Paro's Pub site may benefit by said vacation. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope: 1. That the New Hope City Engineer is hereby directed to determine what portion of the existing public right-of-way is no longer needed for a public purpose and to have prepared a legal description of the right-of-way that can be vacated. 1 2. That the New Hope Acting City Clerk is hereby directed to publish and post notice of a public hearing for May 22, 1989 to consider vacation of the public right-of-way no longer required for a public purpose. Dated: , 1988. President Attest: Secretary OFFICIAL FILE COPY ~enda #4 CITY OFNEWHOPE 4401XYLON AVENUE NORI~ HENNEPINCOUNTY, MINNESOTA55428 ~ Regular Meeting #4 May 22, 1989 City Hall Edward J. Erickson George Daly Wo Peter Enck Gerald Otten Marky Williamson 1. Call to Order 2. Roll Call 3. Approval of Minutes of April 24, 1989 4. Public Hearing - 5. Other Business 6. Adj ouz~-~-m~nt Vacation of Public Right of Way for a Portion of Nevada Avenue North ~ OF N~ 4401 ~ AV~FdE ~ ~ (I~]NTY, ~ 55428 April24, 1989 City,II, 8:30 P.M. APPROVE MINUTES OF AP~/L 10, 1989 VACATE ~3RL/C RIGHT-OF-~I~f Item4 President Erickson called the meeting of the Economic Development Authority to order at 8:30 p.m. Present: Erickson, Daly, Otten, Enck, Williamson Motion byC~dssionerDaly, seconded byC~L~ssionerEnckto approve theEDAminutesofApril 10, 1989. Ail present voted in favor. President Erickson introduced Item 4, "Resolution Directing A~ting City Clerk to Publish Notice for Public Hearing to Vacate Public Right -of-Way". C~,,,,~ssioner Williamson in~i~ed where the right-of-way is located. Cc~missioner Enck explained that when the road was moved to the west off of Paro's Pub property a piece of land was left and is no longer needed for the right-of-way for the road. C~m~ssionerEnck introducedthe foregoing resolution and moved its adoption: '~]O~C~DIR~CTING~CITYC[R~KTO1W3~.w.q~NOTI(~ POR1W3~wC}~RINGTOVACATE1W3R~wCRI~T-OF-WAk"'. ~nemotion for the adoption of the foregoing resolutionwas seconded by C~m~ssionerOtten, and upon vote beingtakenthereon; the following voted in favor thereof: Erickson, Daly, Otten, Enck, Williamson; andthe following voted against the same: None; absent: None; whereupon the resolution was declared dulypassed and adopted, and was signed bythe president whichwas attested tobythesecretary. Motion was made by Co~iu[ssioner Enck, seconded by Commissioner Daly to a~curn the meets. Ail present voted in favor. The New Hope EDA adjourned at 8:35 p.m. City Manager/Acting City Clerk New Hope Page 1 April 24, 1989 'EDA Approved for Agenda Agenda Section · ~/ ) i~. Item No. 5-22-89 4 VACATION OF PUBLIC RIGHT OF WAY FOR A PORTION OF NEVADA AVENUE NORTH The City recently moved Nevada Avenue at 42nd Avenue-so that the north and south streets lined up. The resulting alignment has left an approximate 7,000 sc~are foot section of land just to the west of the property owned by David Iasky (Paro's Pub, 7180 42nd Avenue North). This hearing will consider vacating the street right of way and giving to m~ky. (Imp. 431) Review: Adm/nistration Finance R?A-O0 ~ WILLIAM J. CORRICK. P.A. STEVEN A. SONDRALL. P.A. STEVEN A. SONDRALL MICHAEL R. LAFLEUR MARTIN P. MALECHA WILLIAM C. STRAIT (~Oi~RICK ~¢ SONDI~ALL A PARTNERSHIP OF PROFESSIONAL CORPORATIONS 38H WEST BROADWAY t~OBBINSDALE, ~IINNESOTA 55422 TELEPHONE (61:~) 533-2~41 LEGAL ASSISTANTS LAVONNE E. KESKE SHARON D. HOFSTAD Ms. Audrey Breda ~ew ~ope-Golden ValleF Post Legal D~apar tment ~S0i Bass Lake Road New' ~ope, ~'~znnesota 55428 Re: ~otice of Pu~lic Mearing on Vacatior, of- Pu~)lic !I ' o2 ~a.v for a Portion of ~evada Avenue ~-~orth ~af 3 and ~.~ · !989 ~a~ i0, please ~ind ~he !oiiowio,7 '" '~ of Puoiic Hearing: {'{o[ice of PuOiic N~aring on Vacation ,3f P~.~b!ic ~ight of for a Portion o~ Nevada %venue ~.~ti'~ Please forward your affidavits of puDlication and state~.ent in t~e usual manner. uery truly yours, ~artin P. Halecha Fnclosure cc: M. jeannine Dunn, ~.dministrative .Asst. Daniel 3. Donahue, City Manager ~1111[ THIS COPY FO.~I~ ~ L NOTICE OF HEARING ON VACATION OF PUBLIC RIGHT OF WAY FOR A PORTION OF NEVADA AVENUE NORTH City of New Hope, Minnesota NOTICE IS HEREBY GIVEN, That the Economic Development Authority in and for the City of New Hope, Minnesota, will meet in the Council Chambers in the New Hope City Hall, 4401 Xylon Avenue North, in said City on the 22nd day of May, 1989 at 7:00 o'clock p.m. (or as soon thereafter as the matter may be heard) to hear, consider and pass upon all written or oral objections, if any, to the proposed vacating of a public right-of-way situated in the State of Minnesota, County of Hennepin, City of New Hope: That part of Nevada Ave. N. lying west of the west line of Lot 33, Auditors Subdivision No. 324, Hennepin County, Minnesota, lying east of a line drawn parallel with and 60.00 feet easterly of Line "J" described below, lying northerly of a line drawn parallel with and distant 21.00 feet north of the north line of County State Aid Highway No. 9 as delineated in COUNTY STATE AID HIGHWAY NO. 9, PLAT 58 and lying south of the westerly extension of said Lot 33. Reserving an easement for utility purposes over the south 3.00 feet and over that part thereof lying west of the east 23.00 feet thereof. Line "J" A line drawn parallel with and distant 30.00 feet west of the following described line: Commencing at the intersection of the east line of Lot 11, Auditor's Subdivision No. 324, Hennepin County, Minnesota and the nOrth line of Hennepin County State Aid Highway No. 9 as delineated in HENNEPIN COUNTY STATE AID HIGHWAY NO. 9, PLAT 58; thence North 88 degrees 52 minutes 43 seconds West along said north line 25.01 feet to the actual point of beginning of the line to be herein described; thence North 0 degrees 50 minutes 26 seconds West 2.65 feet; thence Northeasterly 127.95 feet on a tangential curve to the right concave to the Southeast having a radius of 400.00 feet and a central angle of 18 degrees 19 minutes 39 seconds; thence North 17 degrees 29 minutes 13 seconds East tangent to said curve 47.00 feet; thence Northeasterly 127.95 feet on a tangential curve to the left, concave to the Northwest having a radius of 400.00 feet and a central angle of 18 degrees 19 minutes 39 seconds and there terminating. Ail persons desiring to be heard in connection with the consideration of the above-mentioned vacating of the public right-of-way easement described above are requested to be present at said meeting and to make their comments or objections, if any, to the said vacating. Dated the 28th day of April, 1989. s/Daniel J. Donahue Daniel J. Donahue, Acting City Clerk (Published in the New Hope-Golden Valley Post on May 3 and May 10, 1989.) OFFICIAL FILE COPY __ CITY OFNEWHOPEE[I% 4401 Xylon Avenue North HennepinCounty, M~ 55428 Agenda #5 Page 1 Special Meeting #1 (Closed) June 1, 1989 City P~ll, 7:00 P.M. e President: Ccam~issioners: Edward J. Erickson George Dal¥ W. Peter Enck Gerald Otten Marky Williamson Roll Call Discussion of Negotiations Between AutoMall and City onD~elopment of Paro's Site Discussion RegardingSettlementsofCondemnation Action AgainstSeveral Properties Along42ndAvenue 6. Adj oux-~,,,~nt CITY OFNEWHOPE 4401 Xylon Avenue North HennepinCounty, Minnesota 55428 Approved EDA Minutes Special Meeting #1 (Closed) June 1, 1989 City Hall, 7:30 P.M. 42ND AVf~GE New Hope EDA Page 1 The New Hope Economic Development Authority met in special session pursuant to due call and notice thereof; President Erickson called the meeting to order at 7:31 p.m. Present: Erickson, Enck, Daly, Williamson, Otten Absent: None The EDA met in closed session to discuss negotiations between Auto Mall and the City on development of the Paro's site and adjacent properties. The E~A met in closed session regarding the settlements of condemnation action against several properties along 42nd Avenue. Motion by Commissioner Enck, seconded by C~mmissioner Otten, to rec~mt~nd settlement with OreGon Estates in the amount of $120,000. Voting in favor: Erickson, Enck, Williamson, Otten; Against: Daly. Motion by Commissioner Enck, seconded by Commissioner Otten, to settle with Quebec Plaza in the amount of $21,750. All present voted in favor. MotionbyCommissionerDaly, seconded byCommissionerEnck, to settle with AutoHaus in theamount of $10,850. All present voted in favor. Motion byCommissionerDaly, seconded byCc~mtissionerOtten, to settle with Electronic Industries in the amount of $4,800. All present voted in favor. Motion byCommissionerEnck, seconded byCo=~,~ssionerDaly, to recommend settlement withtheSunshine Factory not to exceed $18,000. All present voted in favor. Motion byCommissionerEnck, seconded byCommissionerDaly, to settle withUnical for $15,000. All present voted in favor. Motion byCommissionerDaly, seconded byCommissionerWilliamson, settle with the Widell Apartments for $45,000. All present voted in favor. June 1, 1989 Commissioner Daly suggested that the ~ adopt a policy on providing the information upon actual settlements of condemnations and give that information to the Hennepin County appraisers. Commissioner Daly expressed concern that the City was making settlements at values t_hat were higher than what the properties were appraised at. The City Manager stated he would discuss this with Hennepin County appraisers. The New Hope EDA adjourned at 8:30 p.m. City Manager/Acting City Clerk New Hope EDA Page 2 June 1, 1989 OFFICIAL FILE COPY Agenda #6 CITY OFNEWHOPE 4401 XYLON AVENUE NOR~H HENNEPINCOUNTY, MINNESOTA 55428 EDA Regular Meeting #5 June 12, 1989 City Hall Members: Edward J. Erickson George Daly W. Peter Enck Gerald Otten Marky Williamson 1. Call to Order 2. Roll Call 3. Approve Minutes of May 22, 1989, and June 1, 1989 (Special Meeting #1) 4. Discussion Re~arding Property at 7180 42nd Avenue North (Executive Session) 5. Other Business 6. Adjournment CITY OF N~ ~0PE 4401 ~ AV~FtIE NO,IH ~ (I]~Uf, MINNESC~A 55428 May 22, 1989 City ~]], 7:40 P.M. APPROVE MINUTES OF APRIL24, 1989 F~IC HEARING Item4 New Hope RnA Page 1 -President Pro T~m Otten called the meeting of the Economic Development Authority to order at 7:40 p.m. Present: Otten, Daly, Williamson Absent: Erickson, Enck Motion byC~L~ssionerWilliamson, seconded byOmm,-~ssionerDaly to approve theE~Aminutes of April 24, 1989. Ail present voted in favor. President ProTemOttenopenedthepublic hearing on Vacation of Public Right of Way for a Portion of Nevada Avenue North (#431). City Manager Donahue stated the public hearing is to consider the vacation of the property between Nevada Avenue and Paro's Pub. The City ordinance requires t/hat a public hearing is held regarding vacation of street right-of-way. Mr. Donahue stated staff is uncertain whether the City should proceed with vacating the property. He stated one option would be to vacate the property and it would somewhat negate the cost of the taking as a result of the 42nd Avenue development. He coimi-~nted that by vacating the property the value of the property would be increased. He stated it would be disadvantageous to increase the value if the City wishes to purcba-~e the Paro's Pub site property. Mr. Donahue recommended taking no action tonight and to continue the public hearing on June 26, 1989. City Attorney, Steve Sondrall, stated the City has continued the hearing on the taking of Paro's Pub to an indefinite date. He explained that the City may be able to offset dollars in the taking by vacating this property. He commented that the City is considering plans to acquire the entire Paro's Pub site and if that is accoh~lished the vacation matter resolve itself. He stated in the event that the City decides to acquire the Paro's Pub site it may not be advantageous to vacate the property now since that would result in purchas~ back property which was the City's in the first place. Motion wasmadebyCu~=~ssionerDaly, seconded byCcmmissioner May 22, 1989 Williamson to o~tinue the public hearir~ c~ '~ac~tic~ of Public Right of Way for a Partic~ of Nevada A~ North" to June 26, 1989. All present voted in favor. City Manager Donahue requested that a special closed EDA meeting be scheduled to allow discussion of the Paro's Pub property development. Motion was made by C~m,~ssioner Daly, seconded by C~,~ssioner Williamson to hold a closed meeting of the Econc~dc Devel ~oI~nt Authority c~ ~ay, June 1, 1989, at 6 p.m. All present voted in favor. Motion was made by Oh~,,,,~ssioner Daly, seconded by C~,,~,~ssioner Williamson to adjourn the meetir~. All present voted in favor. New Hope ~ adjourned at 7:50 p.m. The city Manager/Acting City Clerk New Hope Page 2 May 22, 1989 CITY OF NEW HOPE 4401 Xylon Avenue North Hennepin County, Minnesota 55428 App¥oved RnA Minutes Special Meeting #1 (Closed) June 1, 1989 City Hall, 7:30 P.M. 42ND AV~FOE E~v~ ~ New Hope EDA Page 1 The New Hope Economic Development Authority met in special session pursuant to due call and notice thereof; President Erickson called the meeting to order at 7:31 p.m. Present: Erickson, Enck, Daly, Williamson, Otten Absent: None The EDA met in closed session to discuss negotiations between Auto Mall and the City on development of the Paro's site and adjacent properties. The ~A met in closed session reFarding the settlements of condemnation action against several properties along 42nd Avenue. Motion by Commissioner Enck, seconded by Commissioner Otten, to recommend settlement with Oregon Estates in the amount of $120,000. Voting in favor: Erickson, Enck, Williamson, Otten; ~/ainst: Daly. Motion by Ccm~issioner Enck, seconded by Cc~missioner Otten, to settle with Quebec Plaza in the amount of $21,750. All present voted in favor. Motion by Commissioner Daly, seconded by Commissioner Enck, to settle with Auto Haus in the amount of $10,850. All present voted in favor. Motion by Co~.L,~ssioner Daly, seconded by Co~L.~,~ssioner Otten, to settle with Electronic Industries in the amount of $4,800. All present voted in favor. Motion by Commissioner Enck, seconded by Commissioner Daly, to reccmm-~nd settlement with the Sunshine Factory not to exceed $18,000. All present voted in favor. Motion by C~m-missioner Enck, seconded by Commissioner Daly, to settle with Unical for $15,000. All present voted in favor. Motion by Commissioner Daly, seconded by Commissioner Williamson, settle with the Widell Apartments for $45,000. All present voted in favor. June 1, 1989 Commissioner Daly suggested that the EDA adopt a policy on providing the information upon actual settlements of condemnations and give that information to the Hennepin County appraisers. Commissioner Daly expressed concern that the City was making settlements at values that were higher than what the properties were appraised at. The City Manager stated he would discuss this with Hennepin County appraisers. The New Hope EDA adjourned at 8:30 p.m. City Manager/Acting City Clerk New Hope Page 2 June 1, 1989 originating Depa~ L~ent City Manager By: Dan Donahue Approved for Agenda 6-12-89 EDA Agenda Section EDA DISCUSSION REGARDING PROPERTY AT 7180 42ND AVENUE NORTH (Executive Session) Staff requests that the EDA hold an executive session to discuss legal issues relevant to the property at 7180 42nd Avenue North (Paro's Pub). Administration Finance R?A-OOI OFFICIAL FILE COPY Agenda #6 CITY OF NEW HOPE EDA UNOFFICIAL SYNOPSIS EDA P~gular Meeting #5 June 12, 1989 City Hall 2. Roll Call Present: Enck, Daly, Otten, Williamson Absent: Erickson (left at 10:10 pm) o Se Approve Minutes of May 22, 1989, and June 1, 1989 (Special Meeting #1) Discussion RegardingPropertyat 7180 42nd Avenue North (Paro'sPub) (Executive Session) Williamson/Enck Motion to Enter Executive Session Motion--Reaffirm Condemnation Action (Proceed Immediately) Adjour~,-,~_nt 10: 40 pm otten/maly Synopsis Distribution: D. Donahue J. Dunn S. Sondrall File . OFFICIAL FILE COPY -- Agenda #7 CITY OFNEWHOPE 4401XYLON AVENUE NOI~I/~ HENNEPINCOUNTY, MINNESOTA 55428 EDA Regular Meeting #6 June 26, 1989 City Hall Edward J. Erickson George Daly W. Peter Enck Gerald Otten Marky Williamson 2. 3. 4. Se e Call to Order Roll Call Approve Minutes of June 12, 1989 Consideration of Resolution Relating to R~development Plan No. 89-1, Redevelopment Project No. 89-1 to be Undertaken Pursuant Thereto and Tax Increment Financing Plan No. 89-1; Approving Redevelopment Plan No. 89-1 and Redevelopment Project No. 89-1 to be Undertaken Pursuant Thereto, Tax Increment Financing Plan No. 89-1 and the Estmblishment of Tax Increment Financing (Redevelopment) District No. 89-1, and Requesting the Approval of the City Council Consideration of Resolution Relating to Redevelopment Plan No. 89-2, Redevelopment Project No. 89-2 to be Undertaken Pursuant Thereto and Tax Increment Financing Plan No. 89-2; Approving Redevelopment Plan No. 89-2 and Redevelopment Project No. 89-2 to be Undertaken Pursuant Thereto, Tax Increment Financing Plan No. 89-2 and the Establishment of Tax Increment Financing (Redevelopment) District No. 89-2, and Requesting the Approval of the City Council Public Hearing to Consider Vacation of Public Right-of-Way Other Business 8. Adjournment ~ OF N~ ~0PE 4401 XYIDN AV~TJE NOI~{ ~ (I~R~Uf, M/]qNESfY~A 55428 June 12, 1989 City Hail, 10:30 P.M. APPROVE M//FOTES OF MAY 22, 1989 JUNE 1, 1989 President Pro Tem Enck called the meeting of the Economic Development Authority to order at 10:30 p.m. Present: Daly, Otten, Enck, Williamson Absent: Erickson Motion by Commissioner Otten, seconded by Commissioner Daly to approve the EDA minutes of May 22, 1989 and June 1, 1989 (special meeting #1). All present voted in favor. Motion by Commissioner Williamson, seconded by President Pro Tern Enck to enter an EDA Executive Session for discussion regarding property at 7180 42nd Avenue North. All present voted in favor. Motion w-us made by Commissioner Otten, seconded by Commissioner Daly to a~ourn the meet/rig. All present voted in favor. The New Hope EDA adjourned at 10:40 p.m. ~~ctfully submitted, Dan Donahue City Manager/Acting City Clerk New Hope EDA Page 1 June 12, 1989 COUNCIL Manager By: Dan Donahue Approved for Agenda 6-26-89 Agenda Section EDA CONSIDERATION OF RESOLUTION RELATING TO REDEVELOPMENT PLAN NO. 89-1, REDEVELOPMENT PROJECT NO. 89-1 TO BE UNDERTAKEN PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN NO. 89~1; APPROVING REDEVELOPMENT PLAN NO. 89-1 AND REDEVELOPMENT PROJECT NO. 89-1 TO BE UNDERTAKEN PURSUANT THERETO, TAW INCREMENT FINANCING PLAN NO, ~9-1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-1, AND REQUESTING THE APPROVAL OF THE CITY COUNCIL A public hearing will be held by the City Council to consider the Redevelopment Plan 89-1 (3540 Winnetka Avenue North) and Tax Increment Financing Plan 89-1 (3540 Winnetka Avenue North). The EDA will review the plan in conjunction with the City Council's public hearing. The EDA will make a recommendation to the City Council prior to the City Council's action on the item. If the EDA wants to recommend the plan to the City Council, the following resolution should be adopted: RESOLUTION RELATING TO REDEVELOPMENT PLAN NO. 89-1, REDEVELOPMENT PROJECT NO. 89-1 TO BE UNDERTAKEN PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN NO. 89-1; APPROVING REDEVELOPMENT PLAN NO. 89-1 AND REDEVELOPMENT PROJECT NO. 89-1 TO BE UNDERTAKEN PURSUANT THERETO, TAX INCREMENT FINANCING PLAN NO. 89-1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-1, AND REQUESTING THE OF THE CITY COUNCIL. SEOOND BY Administration Commissioner introduced the following resolution and moved its adoption: RESOLUTION RELATING TO REDEVELOPMENT PLAN NO. 89-1, REDEVELOPMENT PROJECT NO. 89-1 TO BE UNDERTAKEN PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN NO. 89-1; APPROVING REDEVELOPMENT PLAN NO. 89-1 AND REDEVELOPMENT PROJECT NO. 89-1 TO BE UNDERTAKEN PURSUANT THERETO, TAX INCREMENT FINANCING PLAN NO. 89-1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-1, AND REQUESTING THE APPROVAL OF THE CITY COUNCIL BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope, Minnesota (the "EDA"), as follows: 1. It has been proposed ~%at the EDA approve a redevelopment plan, as defined in Minnesota Statutes, Section 469.002, subdivision 16, to be designated as Redevelopment Plan No. 89-1 (the "Redevelopment Plan"), and a redevelopment project to be undertaken pursuant thereto, as defined in Minnesota Statutes, Section 469.002, subdivision 14, to be designated ~s Redevelopment Project No. 89-1 (the "Project"), and that in order to finance the public redevelopment costs to be incurred by the EDA in connection with the Redevelopment Plan and Project, it has been further proposed that the EDA approve a tax increment financing plan, pursuant to the provisions of Minnesota Statutes, Section 469.175, to be designated as Tax Increment Financing Plan No. 89-1 (the "Financing Plan") which establishes a tax increment financing district, as defined in Minnesota Statutes, Section 469.174, subdivision 9, to be designated as Tax Increment Financing (Redevelopment) District No. 89-1 (the "District"). 2. The Redevelopment Plan, the Project, the Financing Plan and the District are described in the attached documents entitled "Redevelopment Plan for Redevelopment Project No. 89-1" and "Tax Increment Financing Plan for EDA Tax Increment Financing (Redevelopment) District No. 89-1", and the Redevelopment Plan, the Project, the Financing Plan and the District as so described are hereby approved, and the Executive Director of the EDA and the attorney for the EDA are hereby authorized and directed to proceed with the implementation of the Redevelopment Plan, the Project, the Financing Plan and the District. 3. The Redevelopment Plan and the Project were transmitted to the New Hope Planning Commission (the "Commission") for its review and opinion. The Commission delivered to the EDA its written opinion on the Redevelopment Plan and the Project. 4. The Redevelopment Plan, the Project, the Financing Plan and the District, together with the written opinion of the Commission, shall be presented to the City Council for a public hearing on the Redevelopment Plan and the Project pursuant to Minnesota Statutes, Section 469.027 and the Financing Plan pursuant to Minnesota Statutes, Section 469.175, subdivision 3. 5. It is found that the District is a redevelopment district as defined in Minnesota Statutes, Section 469.174, subdivision 10, as seventy percent (70%) of the parcels in the District are occupied by buildings, streets, utilities or other improvements and at least twenty percent (20%) of the buildings in the District contain defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of internal partitions or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, and at least an additional thirty percent (30%) of the buildings in the District require substantial renovation and clearance in order to remove such existing conditions as inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion. This finding is based upon the report of The Runyan/Vogel Group, dated June 14, 1989, as amended June 22, 1989, on the condition of the buildings in the District. Dated the day of June, 1989. Chairman A-ttest: Executive Director -2- CO~NCZL Approved for Agenda Agenda Section Manager 6-26-89 ED~ Dan Donahue By: 5 CONSIDERATION OF RESOLUTION RELATING TO REDEVELOPMENT PLAN NO. 89-2, REDEVELOPMENT PROJECT NO. 89-2 TO BE UNDERTAKEN PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN NO. 89-2; APPROVING REDEVELOPMENT PLAN NO. 89-2 AND REDEVELOPMENT PROJECT NO. 89-2 TO BE UNDERTAKEN PURSUANT THERETO~ TAX INCREMENT FINANCING PLAN NO. 89-2 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 89-2, AND REQUESTING THE APPROVAL OF THE CITY COUNCIL A public hearing will be held by the City Council to consider the Redevelopment Plan 89-2 (3900 Winnetka Avenue North, excluding the westerly 4.0 acres) and Tax Increment Financing Plan 89-2 (3900 Winnetka Avenue North, excluding the westerly 4.0 acres). The EDA will review the plan in conjunction with the City Council's public hearing. The EDA will make a recommendation to the City Council prior to the City Council's action on the item. If the EDA wants to recommend the plan to the City Council, the following resolution should be adopted: RESOLUTION RELATING TO REDEVELOPMENT PLAN NO. 89-2, REDEVELOPMENT PROJECT NO. 89-2 TO BE UNDERTAKEN PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN NO. 89-2; APPROVING REDEVELOPMENT PLAN NO. 89-2 AND REDEVELOPMENT PROJECT NO. 89-2 TO BE UNDERTAKEN PURSUANT THERETO, TAX INCREMENT FINANCING (REDEVELOPMENT). DISTRICT NO. 89-2, AND REQUESTING THE APPROVAL OF THE CITY COUNCIL. Staff recommends that the City Council adopt the resolution. SE(3DI~D BY Administration Finance R~A-O0~ Commissioner introduced the following resolution and moved its adoption: RESOLUTION RELATING TO REDEVELOPMENT PLAN NO. 89-2, REDEVELOPMENT PROJECT NO. 89-2 TO BE UNDERTAKEN PURSUANT THERETO AND TAX INCREMENT FINANCING PLAN NO. 89-2; APPROVING REDEVELOPMENT PLAN NO. 89-2 AND REDEVELOPMENT PROJECT NO. 89-2 TO BE UNDERTAKEN PURSUANT THERETO, TAX INCREMENT FINANCING PLAN NO. 89-2 AND THE ESTABLISHMENT OF TAX INCREMENT (ECONOMIC DEVELOPMENT) FINANCING DISTRICT NO. 89-2, AND REQUESTING THE APPROVAL OF THE CITY COUNCIL BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope, Minnesota (the "EDA"), as follows: 1. It has been proposed that the EDA approve a redevelopment plan, as defined in Minnesota Statutes, Section 469.002~ subdivision 16, to be designated as Redevelopment Plan No. 89-2 (the "Redevelopment Plan"), and a redevelopment project to be undertaken pursuant thereto, as defined in Minnesota Statutes, Section 469.002, subdivision 14, to be designated as Redevelopment Project No. 89-2 (the "Project"), and that in order to finance the public redevelopment costs to be incurred by the EDA in connection with the Redevelopment Plan and Project, it has been further proposed that the EDA approve a tax increment financing plan, pursuant to the provisions of Minnesota Statutes, Section 469.175, to be designated as Tax Increment Financing Plan No. 89-2 (the "Financing Plan") which establishes a tax increment financing district, as defined in Minnesota Statutes, Section 469.174, subdivision 9, to be designated as Tax Increment Financing (Economic Development) District No. 89-2 (the "District"). 2. The Redevelopment Plan, the Project, the Financing Plan and the District are described in the attached documents entitled "Redevelopment Plan for Redevelopment Project No. 89-2" and "Tax Increment Financing Plan for EDA Tax Increment Financing (Economic Development) District No. 89-2", and the Redevelopment Plan, the Project, the Financing Plan and the District as so described are hereby approved, and the Executive Director of the EDA and the attorney for the EDA are hereby authorized and directed to proceed with the implementation of the Redevelopment Plan, the Project, the Financing Plan and the District. 3. The Redevelopment Plan and the Project were transmitted to the New Hope Planning Commission (the "Commission") for its review and opinion. The Commission delivered to the EDA its written opinion on the Redevelopment Plan and the Project. 4. The Redevelopment Plan, the Project, the Financing Plan and the District, together with the written opinion of the Commission, shall be presented to the City Council for a public hearing on the Redevelopment Plan and the Project pursuant to Minnesota Statutes, Section 469.027 and the Financing Plan pursuant to Minnesota Statutes, Section 469.175, subdivision 3. 5. It is found that the District is an economic development district within the meaning of Minnesota Statutes, Section 469.174, subdivision 12, in that the development to occur in the District in accordance with the Redevelopment Plan will result in the preservation and enhancement of the tax base of the City of New Hope. Dated the day of June, 1989. Chairman Attest: Executive Director -2- originating Depa~ L~ent Manager By: Daniel J. Donahue Approved for Agenda 6-26-89 By: '~_~ Agenda Section EDA PUBLIC HEARING TO CONSIDER.VACATION OF PUBLIC RIGHT-OF-WAY A public hearing has been scheduled to consider vacation of right-of-way no longer needed by the City of New Hope. The right-of-way is located adjacent to the property at 7180 42nd Avenue North (Paro's Pub). The EDA opened the public hearing on May 22, 1989, and continued it until June 26, 1989. Staff re6°mmends that public hearing be continued until July 24, 1989. Adm/nistration Finance RF~-o01 OFFICIAL FILE COPY Agenda #8 CITY OFNAW~ 4401XYLONAVENUENOR1/4 HENNEPINOOUNTY, MINNESOTA 55428 Regular Meeting #7 Edward J. Erickson George Daly W. Peter Enck Gerald Otten Marky Williamson July 24, 1989 City Hall 1. Call to Order 2. Roll Call 3. Approve Minutes of June 26, 1989 4. Approval ofAppraisal Fee Quote for Vacant Industrial Iand East of Public Works - Boone Avenue North at Approximately 55thAvenue (PID #06-118-21 34 0007) 5. Public Hearingto Consider Vacation of Public Right-of-Way 6. Other Business 7. Adjournment CITY OF N~ ~DPE 4401 XYIDN AV~T~E NC~q]~{ ~ (/][~rY, ~ 55428 Jt~ne 26, 1989 City ~]1, 8:55 P.M. APPROVE MINUTES OF JUNE 12, 1989 89-1/89-2 It~m~ 4 and 5 ~nPM~T PLAN 89-1 Itsm4 PIAN 89-2 Item5 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:55 p.m. Present: Daly, Otten, Erickson, Enck, Williamson Absent: None Motion by Cu~m~issioner Enck, seconded by Commissioner Williamson to approve the FDlk minutes of June 12, 1989. Voting in favor: Daly, Otten, Enck, Williamson; Abstain: Erickson. EDA items 4 and 5 were considered simultaneously with Council agenda items 7.3 and 7.4. Refer to June 26, 1989, Council Meeting Minutes for discussion matter. President Erickson introduced for discussion item 4, Consideration of Resolution Relating to Redevelopment Plan No. 89-1, Redevelopment Project No. 89-1 to be Undertaken Pursuant Thereto and Tax Increment Financing Plan No. 89-1; Approving Redevelopment Plan No. 89-1 and Redevelopment Project No. 89-1 to be Undertaken Pursuant Thereto, Tax Increment Financing Plan No. 89-1 and the Estsblishment of Tax Increment Financing (Redevelopment) District No. 89-1, and R~questing the Approval of the City Council. Motion made by Commissioner Enck, seconded by Commissioner Daly to deny adoption of E~A resolution relating to redevelopment plan no. 89-1. Voting in favor: Daly, Enck, Williamson. Voting against: Otten, Erickson. The motion was carried. President Erickson introduced for discussion item 5, Consideration of Resolution Relating to Redevelopment Plan No. 89-2, Redevelopment Project No. 89-2 to be Undertaken Pursuant Thereto and Tax Increment Financing Plan No. 89-2; Approving Redevelopment Plan No. 89-2 and Redevelopment Project No. 89-2 to be Undertaken Pursuant Thereto, Tax Increment Financing Plan No. 89-2 and the Establishment of Tax Increment Financing (Redevelopment) District No. 89-2, and R~questing the Approval of the City Council. Motion made by Commissioner Enck, seconded by Co-~issioner Daly to deny adoption of k~%A resolution relating to redevelopment plan no. 89-2. Voting in favor: Daly, Enck, Williamson. Voting against: Otten, Erickson. The motion was carried. June 26, 1989 I~3~.~C HEARING I~m6 The EDAwas suspended at 10:55 p.m. and reconvenedat 11:50 p.m. President Erickson opened the public hearing to consider vacation of public right-of-way. City Attorney, Steve Sondrall, stated authorizing the vacation will be complicated due to the situation with Paro's Pub and he suggested continuing the public hearing. Motion madebyCcmmissionerDaly, seconded by Commissioner Enck to t~blethepublichearingtoconsidervacation of public right-of-way to July 24, 1989. Motion was made by C~,,t,~ssioner Williamson, seconded by Cu~,~ssioner Enck to ad~curn the meetir~. All present voted in favor. The New Hope EDA adjourned at 11:55 p.m. Respectfully submitted, Valerie I~one City Clerk New Hope EDA Page 2 June 26, 1989 EDA - City Manager By: Daniel J. Donahue Approved for Agenda 7-24-89 By: Agenda Section EDA APPROVAL OF APPRAISAL FEE QUOTE FOR VACANT INDUSTRIAL LAND PUBLIC WORKS - BOONE AVENUE NORTH AT APPROXIMATELY 55TH AVENUE (PID #06-118-21 34 0007) EAST OF The EDA has expanded Tax Increment Districts 1603 and 1604 (North Ridge) to include the vacant property east of Public Works Garage at Boone and approximately 55th Avenue. The purpose of this expansion is to explore the feasibility of creating a parking area for the industrial properties and the North Ridge Care Center. Staff has received a fee quote for the appraisal from Brad Bjorklund. The cost is $800 and would be funded with tax increment proceeds. Staff recommends approval. MOTION BY SECOND BY TO: Adminis~on Finance R?A-O0~ 2822 ANTHONY LANE SO., MINNEAPOLIS, MINNESOTA 55418 BCL APPRAISALS BJORKLUND, CARUFEL, LACHENMAYER, INC. (612) 781-0605 Fax: 781-7826 BRAD BJORKLUND M^~ s~a~^ AL CARUFEL MAI RON LACHENMAYER S~.A REAL ESTATE APPRAISERS & CONSULTANTS July 13, 1989 City of New Hope c/o M. JeannineDunn Management Assistant 4401Xylon Avenue North New Hope, Minnesota 55428 Re: Appraisal Fee Quote Vacant Industrial Land East of Public Works Garage Boone Avenue North at 55thAve. North as extended New Hope, Minnesota At your request, we have driven by and briefly examined the above captioned parcel of vacant land in order to estimate that to provide you with a narrative fee real estate appraisal report, the fee wouldbe $800. The appraisal report wouldbeprovided in three copies and be suitable for use in a condemnation court action. We have assumed that you will provided use with a complete description of the site, the phone number of the owner so that we may contact that person to gain entrance to the property and detailed information including soil borings, if there are any, in regard to subsoils. Otherwise, we shall assume that subsoils are sound for normal building construction unless told otherwise. We should be able to complete the appraisal report in slightly over two weeks from when given the 'go ahead'. You may initiate the appraisal by telephone. Sincerely your, BB/jkg BCL APPRAISALS, INC. Brad Bjorklund, MAI, SREA MORE THAN 50 YEARS FULL APPRAISAL SERVICES EDA Manager By: Daniel J. Donahue Approved for Agenda 7-24-89 By: Agenda Section EDA PUBLIC HEARING TO CONSIDER VACATION OF PUBLIC RIGHT-OF-WAY A public hearing has been scheduled to consider vacation of right-of-way no longer needed by the City of New Hope. The right-of-way is located adjacent to the property at 7180 42nd Avenue North (Paro's Pub). The EDA opened the public hearing on May 22, 1989, continued it until-June 26, 1989, and continued it until July 24, 1989. FDTION BY TO: SECOND BY ~%c]minis~on Finance R?A-O0~ -- OFFICIAL FILE COPY Agenda #9 CITY OFNEWHOPE 4401XYLON AVENUE NORTH HENNEPINCOUNTY, MINNESOTA 55428 EDA Regular Meeting #8 September 11, 1989 City Hall preSident EdwardJ. Erickson Commissioner GaryL,Herault Commissioner W. Peter Enck Commissioner GeraldOtten Commissioner MarkyWilliamson 1. Call to Order 2. Roll Call 3. Approve Minutes of July 24, 1989 4. Discussion Regarding the Status of the Proposed AutoMall Development at 7100-7180 42ndAvenue North 5. Other Business 6. Adjournment CITY OF N~ ~D~E 4401 XYION AV~KIE ~ ~ (I~3NTY, MI]~NESUEA 55428 Meeting #7 July 24, 1989 citY Hall, 8:21 P.M. APPROVE M/]qI~CES OF JUNE 26, 1989 ~0MLIC HEARING Item 5 New Hope EDA Page 1 President Pro Tern Enck called the meeting of the Economic Development Authority to order at 8:21 p.m. Present: Enck, Otten, Williamson Absent: Erickson, Daly Motion by Commissioner Williamson, seconded by Commissioner Otten to approve the F.~A minutes of June 26, 1989. Voting in favor: Enck, Otten, Williamson; Absent: Erickson, Daly. President Pro TemEnck introduced for discussion item4, Approval of Appraisal Fee Quote for Vacant Industrial Land East of Public Works - Boone Avenue North at Approximately 55thAvenue (PID #06-118-21 34 00O7). City Manager, Dan Donahue, explained this is the first step necessary to consider the possibility of acquiring the property between North Ridge Care Center and the Public Works Building. The EDAhas expanded TaxIncrement Districts 1603 and 1604 (North Ridge) to include the vacant property east of Public Works Garage at Boone and approximately 55thAvenue. The purpose ofthis expansion is to explore the feasibility of creating a parking ar~a for the industrial properties and the North Ridge Care Center. Staff has received a fee quote for the appraisal from Brad ~orklund. The cost is $800 and would be funded with tax increment proceeds. Motion made by Commissioner Otten, seconded by Commissioner Williamson to approve the appra~al fee quote to be conducted by Mx-ad Bjorklund for $800. All present voted in favor. President Pro Tern Enck opened the public hearing to consider vacation of public right-of-way. Mr. Donahue stated this public hearing was opened on May 22, 1989, continued until June 26, 1989, and again continueduntil july 24 1989. ' The public hearing was scheduled to consider vacation of right-of- July 24, 1989 way no longer needed by the City of New Hope. The right-of-way is located adjacent to the property at 7180 42nd Avenue North (Paro's Pub). City Attorney, Steve Sondrall, provided a brief history of the request. He c~u~nted that the condemnation actions include taking a parcel for the street; and starting a condemnation action to acquire the entire parcel. He stated if the Ella d~cides to acquire the entire parcel it does not want to acquire additional land that is already owned by the City. There is a risk by not taking any action. Mr. Sondrall stated a commissioner's hearing will be scheduled in the near future concerning the street easement, and if the City has not vacated the property by the time the Commissioners decide the question of value the City will be unable to argue the corresponding offset anyway. He suggested closing the public hearing and continue the action for an additional 90 days. He co~m-~nted that if the EDA denied the action now and later decided to vacate, the procedure would have to begin again with publications, etc. Motion made by Cu~mt~issioner Williamson, seconded by Conmtissioner Otten to close the public hearing oonsidering vacation of public right-of-way. All present voted in favor. Motion madebyCommissioner Williamson, seconded byCommissioner Ottentocontinueanydecisionregardingthevacation of public right-of-wayuntilOctober23, 1989, ~Ameeting. All present voted in favor. Motion was made by Commissioner Otten, seconded by President Pro Tern Enck to adjourn the meeting. Ail present voted in favor. The New Hope EDA adjourned at 8:34 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 July 24, 1989 EDA ' Manager Daniel J. Donahue Approved for Agenda -11-89 By: ~ / DISCUSSION REGARDING THE STATUS OF THE DEVELOPMENT AT 7100-7180 42ND AVENUE NORTH Agenda Section EDA Item No. 4 PROPOSED AUTO MALL Staff will be prepared to make a brief presentation regarding the status of the proposed Auto Mall project.' SEOOND BY A=~nistration Finance OFFICIAL FILE COPY -- Agenda #10 CITY OFNEWHOPE 4401 XYLON AVENUE NOR~H HENNEPINCOUNTY, ~55428 EDA Regular Meeting #9 September 25, 1989 City Hall President Edward J. Erickson Commissioner Gary L'Herault Commissioner W. Peter Enck Com,~issioner Gerald Otten Commissioner Marky Williamson 2. 3. 4. Call to Order Roll Call Approve Minutes of September 11, 1989 Resolution ApprovingPurchaseAgreementBetweentheEconomic Development Authority in and for the City of New Hope and Midwest Automalls, Inc. forthe Property Locatedat 7180 42ndAvenue North; Authorizing the President, Secretary-Treasurer, and Executive Director to Sign 5. Other Business 6. Adjournment EDA Originating De~t Manager By: Jeannine Dunn Approved for Agenda Agenda Section EDA 9-25-89 It~ No. By: 4 RESOLUTION APPROVING PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVELOP- MENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE AND MIDWEST AUTOMALLS, INC. FOR THE PROPERTY LOCATED AT 7180 42ND AVENUE NORTH; AUTHORIZING THE PRESIDENT, SECRETARY-TREASURER, AND EXECUTIVE DIRECTOR TO SIGN Staff has prepared a purchase agreement with 'Midwest Automalls, Inc. for the property located at 7180 42nd Avenue North (Paro's Pub). The purchase agreement calls for a sale of the property in the amount of $425,000. The purchase agreement also includes a condition that the EDA obtain title to the property either by direct negotiations or by eminent domain proceedings. Staff recommends approval of the resolution. S~O01N1D BY Administration R?~-oo~ EDA RESOLUTION NO. 89- RESOLUTION APPROVING PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE AND MIDWEST AUTOMALLS, INC. FOR THE PROPERTY LOCATED AT 7180 42ND AVENUE NORTH; AUTHORIZING THE PRESIDENT, SECRETARY-TREASURER, AND EXECUTIVE DIRECTOR TO SIGN WHEREAS, the Purchase Agreement between the Economic Development Authority in and for the City of New Hope and Midwest Automalls, Inc., for the property located at 7180 42nd Avenue North and commonly referred to as Paro's Pub, has been prepared and presented to the EDA. NOW, THEREFORE, BE IT RESOLVED by the EDA in and for the City of New Hope; that the Purchase Agreement between the EDA and Midwest Automalls, Inc. for the property at 7180 42nd Avenue North is hereby approved and the President, Secretary-Treasurer, and Executive Director are authorized to sign. Adopted by the Economic Development Authority in for the the City of New Hope, Hennepin County, Minnesota, this 25th day of September, 1989. President Attest: Executive Director PURCHASE AGREEMENT This Agreement made this day of , 1989, by and between the Economic Development Authority in and for the City of New Hope, a municipal corporation (hereinafter "Seller") and Midwest Automalls, Inc., a Minnesota corporation (hereinafter "Buyer"); witnesseth: 1. Consideration/Earnest Money. For and in consideration of the mutual agreements herein contained Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase and pay for the following tract or parcels of land described below, (hereinafter "Property" or "Premises"), all for a purchase price equal to the cost to the Seller to obtain the Property through a pending eminent domain action, District Court, Hennepin County, Fourth Judicial District, Case No. CD - 2141, which cost shall include the amount of any Award of Damages by the Court appointed commissioners plus all-reasonable legal and administrative fees associated with said case CD - 2141 as determined by the City of New Hope, including but not limited to, filing fees, commissioner fees, appraisal fees, attorney's fees, and City administrative personnel fees. However, notwithstanding the foregoing, the purchase price to be paid by Buyer for the Property shall in no event exceed the sum of Four Hundred Twenty-five Thousand and 00/100ths ($425,000.00) Dollars, cash, to be paid by Buyer to Seller at closing. 2. Property Description. The Property which by this Agreement Seller will sell to Buyer, is located at 7180 42nd Avenue North, New Hope, Hennepin County, Minnesota, and is legally described as: Lot 33, "Auditor's Subdivision Number 324, Hennepin County, Minnesota." 3. Conditional Sale. Buyer acknowledges that the Seller currently does not possess fee title to the subject property. Buyer further acknowledges that Seller has commenced eminent domain proceedings per Minn. Stat. Chapter 117 to acquire the Property. Buyer agrees that Seller's obligation to sell the Property to Buyer is cOnditioned upon Seller's successful acquisition of this property, either by direct negotiations with the fee owner David N. Lasky (hereinafter "Lasky") or through the eminent domain proceedings. This agreement shall be null and void if the Seller cannot convey to Buyer marketable and insurable fee simple title to the property, free and clear of any and all liens, mortgages, pledges, security interests, leases, charges, encumbrances, easements, joint ownerships, or restrictions of any kind, except for those objections listed on Exhibit A attached hereto, said conveyance to take place within 24 months after the date of this Agreement. As an additional condition, Buyer agrees to develop the property with a commercial facility that is approved by the Seller, is consistent with Redevelopment Plan 85-2, and is in compliance with all municipal, state and federal zoning, building and fire code regulations. As a further condition, Buyer agrees to develop the Property in conformance with a Planned Unit Development Conditional Use Permit as the same will be finally approved by the New Hope City Council, which Permit has of this date been approved by the New Hope Planning Commission as Case No. 89-15. 4. Examination of Title. Within a reasonable time after Seller's Notice to Buyer of Seller's acquisition of title to the Property from Lasky, Seller shall furnish Buyer with an Abstract of Title or a Registered Property Abstract certified to date including proper searches covering bankruptcies and State and Federal judgments, liens, and levied and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of Title or Registered Property Abstract either to have Buyer's attorney examine the title and provide Seller with written objection or, at Buyer's own expense, to make an application for a Title Insurance Policy and notify Seller of the application. Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any title objections not made within the applicable ten (10) day period for above, except that this shall not operate as a waiver of Seller's covenant to deliver a statutory Warranty Deed. 5. Title Corrections and Remedies. Seller shall have 120 days from receipt of Buyer's written title objections to make 3 title marketable. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. a. If Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections,, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. b. If Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. c. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: 1. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. 4 2. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. d. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: 1. Seek damages from Seller including costs and reasonable attorney's fees. 2. Seek specific performance within six months after such right of action arises. 6. Date of Closinq. Subject to the time extension of Paragraphs 5 and 8, the completion of the purchase contemplated hereby shall take place on a day 90 days after the Seller's Notice to Buyer of Seller's acquisition of title to the Property from Lasky. The closing shall occur at the offices of the Seller, 4401 Xylon Avenue North, New Hope, Minnesota, or at such other place and time as Seller and Buyer shall agree in writing. 7. Transfer of Title. Seller agrees to convey the Property to Buyer on the Closing Date by Warranty Deed, subject to Permitted Exceptions attached as Exhibit A. 8. Tenant Interest. Seller agrees that the property will be unoccupied and any tenant interests in the Property will be terminated by the Closing Date. In the event any tenant has not vacated the Property after such termination, Buyer and Seller agree to extend the Closing Date for 30 days to allow Seller to accomplish procedures prescribed by law for the removal of the tenant. 9. Seller Warranties. Seller makes the following 5 representations and warranties applicable to this Agreement and sale: a. City Sewer and Water - That the premises are connected to city sewer and water. Seller agrees to pay all accrued and unpaid city water billings as of the Closing Date. b. Authority to Sell - That this Agreement is valid and binding upon Seller in accordance with its terms. That Seller has the authority and power to enter into this Agreement and to consummate the transaction contemplated hereby, and neither the execution or delivery of this Agreement by Seller nor its performance by Seller will conflict with or result in a violation or breach of any law, regulation, order, writ or injunction of any Court or governmental agency, applicable to Seller or to the Property nor of any term, condition, or any indenture, or other contract or agreement to which Seller is a party nor cause a default thereunder nor result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever on the Property pursuant to the terms of any such agreement. c. Pending Litigation - Seller represents and warrants that Seller has no actual knowledge of any litigation, proceeding, claim or investigation, pending or threatened, with respect to the Property other than the current condemnation action identified in Paragraph 3 and other than litigation entitled Ropas, Inc., d/b/a Paro's Pub v. City of New Hope, Hennepin County District Court, Court File No. CT87-10369, involving claims for declaratory relief and damages on the part of plaintiff against the City relating to the City's refusal to renew a liquor license for a liquor establishment operated on the Property. d. Zoning - That the property is located in B-3 zoning district. 10. Real Estate Taxes and Special Assessments. Real estate taxes and installments of special assessments due and payable in the year of closing shall be paid by the parties on a pro rata basis as of the Closing Date. Seller shall pay all real estate taxes and installments of special assessments due and payable in years prior to the year in which closing occurs, and Buyer shall pay all real estate taxes and installments of special assessments due and payable in years after the year in which the closing occurs. Buyer agrees to assume all levied and pending assessments as of the Closing Date. 11. Buyer Warranties. Buyer makes the following representations and warranties applicable to this Agreement and sale: a. Authority to Buy - That this Agreement is valid and binding upon Buyer in accordance with its terms. That Buyer has the authority and power to enter into this Agreement and to consummate the transaction contemplated hereby, and neither the execution or delivery of this Agreement by Buyer nor its performance by Buyer will conflict with or result in a violation or breach of any law, regulation, order, writ or injunction of any Court or governmental agency, applicable to Buyer or to the Property nor of any term, condition, or any indenture, or other contract or agreement to which Buyer is a party nor cause a default thereunder. 12. Sale As-Is. Buyer acknowledges that it has made its own investigation and examination of the Property and of its potential for development, and agrees that it is acquiring the Property on an as-is basis without representation or warranty, express or implied, of any kind by Seller or by any person or entity on behalf of Seller regarding the condition of the Property and any matter related to the condition of the Property or its fitness for any particular use, other than as set forth in Paragraphs 9., a through d above. 13. Commissions. Seller hereby warrants to Buyer and Buyer hereby warrants to Seller that no broker's commissions, finder's fees or like charges (hereinafter collectively called a "Commission") have been incurred in connection with this transaction by the party so warranting herein. Seller and Buyer hereby agrees to indemnify and to hold each other harmless from any alleged claim for any Commission that may be claimed by any third party through either of them against the other party. Notice of any claim under this provision must be given to the other party within thirty (30) days from the date a request for commission is made. The indemnifying party will have the right to'defend and settle any claim for commission. 14. Notice. It is agreed by the parties that any notices required by this Purchase Agreement shall be in writing and shall be deemed given when personally delivered to the persons identified below or when mailed by first class mail with postage prepaid as follows: Buyer - Midwest Automalls, Inc. Seller - Daniel J. Donahue Executive Director, New Hope EDA 4401 Xylon Avenue North New Hope, MN 55428 15. Miscellaneous. This Agreement embodies the entire agreement between the parties and cannot be waived or amended except by a written agreement executed by Seller and Buyer. The representations, warranties and covenants of the Seller and Buyer herein contained shall survive the closing and shall not be merged into the closing. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties hereto and their heirs, executors, personal representatives, successors and assigns, any rights or remedies under or by reason of this Agreement. Seller and Buyer agree that they will, at any time and from time to time after the Closing Date, upon the request of the other party, execute, acknowledge and deliver or will cause to be 9 done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably required for the effective assigning, transferring, granting, conveying, assuring and confirming to them, their heirs, legal representatives or assigns or for aiding and assisting in the collecting and reducing to possession, any and all of the Property to be assigned to them as provided herein, at the cost of the requesting party. This Agreement shall be conveyed by and construed in accordance with the laws of the State of Minnesota. Time is of the essence for all provisions of this contract. BUYER: MIDWEST AUTOMALLS, INC. Dated: , 1989. By Its Dated: , 1989. By Its SELLER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA Dated: · 1989. By Its Executive Director 10 Dated: , 1989. By Its President Dated: , 1989. By Its Secretary-Treasurer STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) and The foregoing was acknowledged before me this day of , 1989, by , and , respectively, of Midwest Automalls, Inc., a corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of , 1989, by Daniel J. Donahue, Edward J. Erickson and W. Peter Enck, the ExeCutive Director, President and Secretary-Treasurer, respectively, of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said corporation. Notary Public 11 be ge EXHIBIT A Permitted Exceptions Building and zoning laws, ordinances, State and Federal Regulations. Restrictions relating to use or improvement of the premises without effective forfeiture provision. Reservation of any minerals or mineral rights to the State of Minnesota. Utility and drainage easements which do not interfere with present improvements. The lien of any real estate taxes and installments of special assessments not yet due and payable. Amended Petition and Order Amending Petition filed January , 1989, as Document Nos. granting to the Housing and Redevelopment Authority in and for the City of New Hope certain easements and rights for highway purposes. Highway Plat filed November 28, 1979 as Document No. 1359773. Official File Copy Agenda #11 CITY OFNEWHOPE 4401 XYLON AVENUE NORPH HENNEPIN~, MINNESOTA55428 EDA Regular Meeting #10 October 23, 1989 ~ityHall President Edward J. Erickson Commissioner Gary L'Herault Commissioner W. Peter Enck Commissioner Gerald Otten Co~.~ssioner Marky Williamson 1. Call to Order 2. Roll Call 3. Approve Minutes of September 25, 1989 4. Resolution Approving 1989 Amendment to Redevelopment Plan 82-1 and Tax Increment Financing Plan 82-1 and RequestingtheApproval of the City Council 5. Consideration of Vacation of Right-of-Way Located at 7180 42ndAvenue North (Paro's Pub) 6. Other Business 7. Adjournment CITY OF N~ ~DPE 4401 XYIDN AV~I~OE ~ ~ COUNTY, ~ 55428 Appzuved R~A Minutes ~ #9 ~ 25, 1989 City Hall, 8:05 P.M. ~VE MINUTES OF SEPT. 11, 1989 President Erickson called the meeting of the Economic Development Authority to order at 8:05 p.m. Present: L'Herault, Otten, Erickson, Enck, Williamson Motion by Co~,'issioner Enck, seconded by Commissioner Williamson to approve the EDA minutes-of September 11, 1989. All present voted in favor. Item 5 was added to the agenda. President Erickson introduced for discussion Item 4, Resolution Approving Purchase Agreement Between the Economic Development Authority in and for the City of New Hope and Midwest Automalls, Inc. for the Property Located at 7180 42nd Avenue North; Authorizing the President, Secretary-Treasurer, and Executive Director to Sign. City Manager, Dan Donahue, stated staff has prepared a purchase agreement with Midwest Autcmalls, Inc. for the property located at 7180 42nd Avenue North (Paro's Pub). The purchase agreement calls for a sale of the property in the amount of $425,000. The purchase order also includes a condition that the EDA obtain title to the property either by direct negotiations or by eminent domain proceedings. He stated the purchase agreement would guarantee Midwest Automalls as buyer/developer of the property if and when the city takes possession of the property. He stated the agreement would become void if the city does not acquire the property. Commissioner Enck inquired whether the contract has a 'sunset' provision. Mr. Sondrall stated Paragraph 3 of the contract includes "said conveyance to take place within 24 months after the date of this agreement". Commissioner Williamson asked whether the agreement would affect Cooks Automotive. Mr. Donahue stated the agreement has nothing to do with Cooks Automotive property. He stated Midwest Automalls has worked out an arrangement with Cooks Automotive of which the City is not involved. New Hope EDA Page 1 September 25, 1989 #89-5 New Hope EDA Page 2 Commissioner Otten introduced the foregoing resolution and moved its adoption: 'R~ESOI/Yi~C~ ~ i~JRf~IgSE AG~~ ~ THE ~CDNC~IC ~mPM~qT ~ IN AND FOR ~ CITY OF NEW HOPE AND ~ ~T;.q, INC. FfH~ ~E l~)l~q~f IDCATED AT 7180 42ND AVt~VOE DIR~C1C~ TO SIM'. The motion for the adoption of the foregoing resolution was seconded by Commissioner L'Herault, .and upon vote being taken thereon; the following voted in favor thereof: Erickson, L'Hez-ault, Otten, Enck, Williamson; and the following voted against the same: None; absent: None; whereupon the resolution was declared duly passed and adopted, and was signed by the president which was attested to by the secretary. Mr. Donahue stated staff has been negotiating with representatives of McDonalds. He stated McDoD~lds is anxious to begin construction but it must resolve some final costs first. City Attorney, Steve Sondrall, stated he has been dealing with Randy Berge from McDonalds. He stated McDonalds is requesting a reduction of $4,000 in the purchase price due to extra costs. McDonalds has incurred extra costs with obtaining an easeamnt from New Hope Swim and Fitness. Relocation of the monitoring wells as ordered by the Minnesota Pollution Control Agency has also resulted in added expenses. Mr. Sondrall commented that Mr. Berge indicated the possibility of postponing construction until March of 1990. He stated McDonald's would be willing to take the risk of starting the project immediately if the City would reduce the purchase price by $4,000. He explained that due to the weight restrictions on the road, if there was an early frost, it would be possible that McDonalds would be unable to asphalt the site after October 15. Mr. Sondrall stated Mr. Berge feels it may be possible to get the wells relocated, within two weeks and essentially that leaves between two to six weeks to complete the site preparation (asphalt) in order to get the building operating by the end of the year. Mr. Sondrall co~,t~_nted that if McDonald's waited until next March the City would lose approximately $11,000 in interest (based on ten percent interest rate of $225,000). Mr. Donahue stated that when the PCA ordered placen~nt of the wells, a location should have been selected which would not interfere with future development; however, it was believed that the wells would only be necessary a short while. He recommended that the City take partial responsibility in relocating at least one of the wells which would amount to approximately $4,000. Corn,missioner Williamson inquired if and when the wells will eventually be removed. Mr. Donahue stated the PCA will make that determination and it would be Sinclair's responsibility to pay for Septemlber 25, 1989 the cost of removal. Mr. Sondrall ~ted that originally the PCA required the wells to be in place for one year and the year expired in April. Now the PCA is feeling that they may be required for another year or possibly longer. He stated if the wells are relocated to a place under shrubbery and out of the way they may never need removal. Motion made by Commissioner Otten, seconded by President Erickson, authorizing the reductic~ of the pu~u/~se price of property at 4201 Wir~etka not to exceed~__~ $4,000. Motion is subject to McDonalds beqinning cc~on ~ediately. Voting in favor: Enck, L'Herault, Otten, Erickson. Voting against: Williamson. The motion Motion was made by Commissioner Enck, seconded by Commissioner L'Herault to adjourn the meeting. All present voted in favor. New Hope EDA adjourned at 8:35 p.m. The Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 September 25, 1989 EDA } REQUF.~T FOR ACTION Originating Department Approved for Agenda Agenda Section Manager EDA 10-23-89 Item No. By: Dan Donahue By' 4 _ ~.so~,~ON ~OV~N~ ~~N~,~.N~ ~0 ~V~.~.O~.~ ~ ~N~ ~X ~NC~.,~.N~ ~N~C~ ~ ~-~ ~ ~.~.S~N~ ~. ~OV~, OF THE CITY COUNCIL The resolution approves an amendment to Redevelopment Plan 82-1 and Tax Increment Financing Plan 82-1 proposing to incorporate the Community Center Park, and the vacant property located just east of the North Park Plaza (VOA) building. The purpose of the amendment is to allow for the use of the tax increments financing in creating community center and housing opportunities for New Hope residents. Staff recommends approval of the resolution. MOTION BY ~/7/L~C SECOND BY Renew: Admtr~stratton: Finance: RFA-O01 CERTIFICATE NEW HOPE EC. ONOMIC DEVELOPMENT AUTHORITY I, the undersigned bcin~f the duly qualified Executive Director of the New t{opo Economic l)ev¢'l(q)ment Authority, hereby attest and certify tt~at: 1. As such officer, I am the recording officer of the' New Hope Economic Development Authority and have the legal custody .of the original record from which the attached resolution was transcribed. ~. I haye carefully compared the attached resolution with the original record of the meeting at which the resolution was acted upon. 3. I find l.he attac[~cd ~'esolutio~ to be a true, correct and complete copy of the ~:~igina[: EDA RESOI,UT] ()M NO . 89- Resolution App['oving 1.9~') Amendment to Redevelopment [~lan 82-~ ~nd Tax Increment Financing Plan 82-[ and Requesting the Approval of the City 4. I further certify tt~at the affirmative vote on said resolution was ayes, nayes, and absent/ abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. this WITNESS my hand officially as such ~xecutiv~ Director day of October, 1989. ' Daniel J. Donahue, Executive Director EDA RESOLUTION NO. 89- Commissioner introduced the following resolution and moved its adoption: RESOLUTION APPROVING 1989 AMENDMENT TO REDEVELOPMENT PLAN 82-1 AND TAX INCREMENT FINANCING PLAN 82-1 AND REQUESTING THE APPROVAL OF THE CITY COUNCIL BE IT RESOLVED, by the New Hope Economic Development Authority ~(the "EDA"), as follows: ~l. Prop.osed Amendment. The Housing and Redevelopment Authority in and for the City of New Hope, Minnesota (the "HRA") has approved a redevelopment plan, as .defined in Minnesota Statutes, Section 469.002, subdivision 16, designated as Redevelopment Plan 82-1 ("Redevelopment Plan 82-1"), and a redevelgpment project to be undertaken pursuant thereto, as defined in' Minnesota Statutes, Section 469.002, subdivision 14, designated as Redevelopment Project 82-1.("Redevelopment Project 82-1"), and that. in order to finance the public redevelopment costs to be incurred by the HRA in connection with Redevelopment Plan 82-i and Redevelopment Project 82-1, the HRA has approved a tax increment financing plan, pursuant - to the provisions of Minnesota Statutes, Section 469.175, designated as Tax Increment Financing Plan 82-1 ("Financing ~Plan 82-1"), which establishes a tax increment financing district, as defined in Minnesota Statutes, Section 469.174, subdivision 9, designated as Tax Increment Financing District 82-1 ("District 82-1") which is designated by Henn~pi~ County as Tax Increment Financing Districts Nos. 1603 and 1604. Pursuant to Minnesota Statutes, Section 469.094, subdivision 2, the City has transferred control of Redevelopment Plan 82-1, Financing Plan 82-1 and District 82-1 from the HRA to the EDA. It has been proposed that the EDA approve an amendment to Redevelopment Plan 82'1 and Financing Plan 82-1 which is entitled "1989 Amendment to Redevelopment Plan 82-1 and Tax Increment Financing Plan 82-1" (the "1989 Amendment") to expand the area subject to Redevelopment Plan 82-1 and to authorize the expenditure of tax increment revenue derived from .District 82-1 to pay a portion of the public redevelopment costs in the additional area subject to Redevelopment'Plan 82-1 by the 1989 Amendment. 2. Approval of 1989 Amendment. The 1989 Amendment which has been. presented to this Board and is ordered pl'aced on file in the office of the Executive Director of the EDA, and the 1989 Amendment is hereby approved. The 1989 Amendment further~serves the original goals and purposes of the City 'and HRA in approving Redevelopment Plan 82-1, Redevelopment Project 82-1 and Financing Plan 82-1, by providing needed public facilities which will be of benefit to all residents of the City, including those residing in the area subject to Redevelopment Plan 82-L, prior to the inclusion of the additional property by the 1989 Amendment, and by providing additional housing facilities for physically challenged persons of low and moderate income on the property east of North Park Plaza. 3. Presentation to City Council. The 1989 Amendment hereby approved shall be presented to the City Council for a public hearing thereon pursuant to Minnesota Statutes, Section 469.029, subdivision 6 and Section 469.175, subdivision 4. Dated the 23rd day of October, 1989. President Attest: Executive Director -2- ~ EDA Originating Department Approved for Agenda Agenda Section Management Assistant /_% EDA 10-23-89 Item No. By: Jeannine Dunn By: 5 / 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 at 7180 42nd Avenue North (Paro's Pub). The EDA elected to table a decision on the issue until October 23, 1989. Staff requests that the item be tabled until January 22, 1990. Review: Administration: Finance: RFA-O01 ~ OFFICIAL FILE COPY Agenda #12 CITY OFNEWHOPE 4401 XYLON AVENUE NOR~H HENNEPIN COUNTY, MINNESOTA 55428 EDA Regular Meeting #11 November 13, 1989 City Hall President Edward J. Erickson Co~issionerGaryL'Herault ConmLissioner W. Peter Enck Commissioner GeraldOtten Commissioner MarkyWilliamson 2. 3. 4. Call to Order Roll Call Approve Minutes of October 23, 1989 Consideration of Request by Autohaus/Thomas Boettcher to Assist in Financing the Acquisition of Property Located at 7675 42nd Avenue North (New Hope Animal Hospital) 5. Other Business 6. Ax~journment CITY OF N~ }~)PE 4401 XYLON AV~qUE ~ H~ C~, MINNESOTA 55428 #1o October 23, 1989 city Hall, 7:15 P.M. (I~,T.T, ~ ORI)t~m~ APPROVE MINUTES OF SEPT. 25, 1989 REDEVELOPMm~ PLAN 82-1 TIF PLAN 82-1 Item 4 RESOLUTION E~A #89-6 Item 4 President Erickson called the meeting of the Economic Development Authority to order at 7:15 p.m. Present: L'Herault, Otten, Erickson, Enck, Williamson Motion by Commissioner Otten, seconded by Co~issioner Enck to approve the EDAminutes of September 25, 1989. All present voted in favor. President Erickson introduced for discussion Item 4, Resolution Approving 1989 Amendment to Redevelopment Plan 82-1 and Tax Increment Financing Plan 82-1 and Requesting theApproval of the City Council. City Attorney Steve Sondrall explained that staff is proposing to amend the redevelopment plan area not expand the tax increment district but expand the plan area where tax increment district monies can beused and expended. Mr. Donahue stated the amendment is to incorporate into the plant he civic center park area and the property next to the VOA. He stated at this point in time he is not recommending spending any money on the property next to the VOA. However, if the City desires to use tax increment financing forthis property in the future, this amendment will allow the City to do so. Refer to October 23, 1989, Council Meeting Minutes for discussion matter (Agenda Item 7.1). Commissioner Enck introduced the foregoing resolution andmoved its adoption: '~ESOII3TIONAPPROV/]qG 1989AM~TOREDEVE~PMENT PLAN82-1ANDTAX/]qC~FiNANC//~GPLAN82_lANDi~~HE APPROVAL OFTHECITYOOUNCiL,,. Themotion for the adoption ofthe foregoing resolution was seconded by Commissioner Otten, and upon vote beingtakenthereon; the following voted in favor thereof: Erickson, L'Herault, Otten, Enck, Williamson; and the following voted against the same: None; absent: None; whereupon the resolution was declared duly passed and adopted, and was signed by the president whichw-as attested tobythe secretary. New Hope EDA Page 1 October 23, 1989 P~O'S ~ Item 5 President Erickson introduced for discussion Item 5, Consideration of Vacation of Right-of-Way Located at 7180 42nd Avenue North (Paro' s Pub). Mr. Donahue stated that on July 24, 1989, the EDA closed the public hearing on the vacation of right-of-way located adjacent to the property at 7180 42nd Avenue North (Paro's Pub). The EDA elected to table a decision on the issue until October 23, 1989. He stated staff is requesting that the item be tabled until January 22, 1990. Motion made by Commissioner Enck, seconded by Commissioner L,Herault to table consideration of vacation of right-of-way located at 7180 42nd Avenue North (Paro's Pub) until January 22, 1990. All present voted in favor. Motion was made by Commissioner Enck, seconded by Commissioner Otten to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 7:18 p.m. Respe~fully submit%~ed, Valerie Leone City Clerk New Hope EDA Page 2 October 23, 1989 EDA REQUF_ T FOR ACTION Approved for Agenda Agenda Section EDA 11-13-89 Item No. 4 O~g~ing Depar~ne~ Management Assistant Jeannine Dunn CONSIDERATION OF REQUEST BY fAUTOHAUS/THOMAS BOETTCHER TO ASSIST FINANCING THE ACQUISITION OF PROPERTY LOCATED AT 7675 42ND AVENUE (NEW HOPE ANIMAL HOSPITAL) Mr. Thomas Boettcher is requesting that the City assist in financing acquisition of the New Hope Animal Hospital at 7675 42nd Avenue North. The acquisition would allow Mr. Boettcher to expand his exist~ business, and would also eliminate a non-conforming property. Staff has asked Rebecca Yanisch of Public Financial Systems to analyz~ the request from a financial standpoint. Ms. Yanisch has prepared memorandum which describes the financial transaction. MOTION BY SECOND BY Review: Administration: Finance: RFA-O01 NOU-09-1989 10:57 FROM PUBLIC FIN, SYSTEMS 95369104 P.03 $12 I~II~L,I.,ET MAI.L, SUITE 550 $ MINN~A~S~ MINN~OTA 55402 2']39 S~ND AVEb]UE $,1~, · CI~DAR RAPIDS. tOWA $2403 DATE: November 8, 1989 TO: FROM: RE: Dan Donahue, City of New Hope Rebecca Yantsch, Public Financial Systems, Inc. Response to Autohaus Request Dated October lg, 1989 The purpose of this memorandum is to provide an analysis of the request for financial assistance submitted by Tom Boettcher for expansion of his business, Autohaus of Minneapolis, located at 7709 42nd Avenue North. In his letter of October 19, 1989, Mr. Boettcher proposed that Autohaus make a $20,000 down payment on the acquisition of the veterinary clinic, while the City finances the remaining $137,000 over 15 years at market interest rates. The payments on the City financed share would be secured by Mr. Boettcherts personal guarantee. He has also requested that'the City pay the cost of removing the existing building on the site. Our analysis of the Autohaus request focuses primarily on the risk to the City in providing the requested financial assistance, in analyzing the risk and preparing our recommendation on the structure for the financing, we have reviewed the corporate financial statements of Autohaus for the first year of business, 1988, and through September $0, 1989. Mr. Boettcher has also provided his personal financial statements for review. Finally, we have relied on the appraisal for the veterinary clinic property which was prepared in April of 1988 by BCL Appraisals. The constraints and assumptions we considered in formulating our recommenda- tions were as follows: · While the Autohaus expansion lies within the 42nd Avenue tax incre- ment redevelopment district, the expansion itself will not generate additional increment for the district. Due to the demolition of the. existing building, initially the value of the district will be decreased. There will be no incremental taxes available to assist in financing the acquisition. m While the Autohaus corporate financial statements reflect a net income in the first year of operations, and double that income amount in the first nine months of 1989, it is important to Keep in mind that it is a young, expanding business. It would be difficult to obtain private financing for such a young company. [t would also be difficult to provide letters of credit or other costly credit enhancement mechanisms to secure the City's financing for the expansion. By acquiring the veterinary clinic, clearing the site, and providing it for development, the City is removing a noncomforming use and taking an action that fits with the public purpose in establishing the 42nd Avenue redevelopment area. TOTAL P.05 NOU-09-1989 11:30 FROM PUBLIC FIN. sySg'E~S TO P. 02 Memorandum Mr. Dan Oonahue Page Two Based on these constraints and assumptions, we recommend that the City of New Hope acquire the.veterinary cltnlc at the prtce negotiated by Hr. Boettcher of $157,000. The City should then demoltsh the bulldtng and lease the property to Mr. Boettcher. The lease term would assume a $20,000 tnlttal payment by Mt. Boettcher, with the remainder of the $]37,000 in cost financed over either ]0 or ]5 years. The City may offer Mr. Boettcher an optlon to purchase the site at the end of the lease term. The option price should be equivalent to the cost of demolishing the extsttng building on the site, plus accrued interest. A final point would be that Autohaus would pay property taxes on the site as lease holder. Assuming a taxable bond rate of 9 percent, the lease payments and purchase price would be as follows: Lease Te~n option Pric.e. 10 $22,768 $20,360 15 17,668 31,325 The option price shown above assumes a demolition cost of $8,600 with interest accruing at the assumed bond rate of g percent. The financial exposure to the City of New Hope is measured by the amount of financing requested, plus the cost of demolition, less the current value of the land. Assuming a financing amount of $137,000 plus $8,600 in demolition costs, and assuming current land value of $S5,000, the financing gap or exposure to the City would be $90,600. If Mr. Boettcher defaults on the lease payments, the first step would be to call on the personal guarantees he will be providing to cover the lease* payments. If Hr. Boettcher is in bankruptcy Or otherwise unable to perform on the personal guarantees, the next option available to the City would be to sell the site. If the City sold the site for an alternative use, the assumption would be that additional development would be constructed on the site, creating incremental taxes that could be used to continue amortization of the lease costs. This option is only available to the City if it retains title to the site. in su~nary, we feel that the land lease approach to financing the acquisition of the veterinary clinic is the most cost effective approach and minimizes the risk as best possible to the City of New Hope. The proposal raises policy issues regarding the City or HRR's ownership of land for lease to Private entities, which includes consideration of the term of the lease, and the structure for future option prices. By showing the impact of both the 10 and 15 year lease, we have presented information for your policy makers to consider in establishing their goals for the timing and level of involvement in the transaction. Please feel free to contact me if you have any questions on any of the above information..' TOTAL P.02 OFFICIAL FILE COPY Agenda #13 CITY OFNEWHOPE 4401 XYLON AVENUE NOR~H HENNEPIN COUNTY, MINNESOTA 55428 EDA Regular Meeting #12 November 27, 1989 City Hall President EdwardJ. Erickson Conm~ssionerGaz~ L'Herault Commissioner W. Peter Enck Commissioner GeraldOtten Commissioner MarkyWilliamson 2. 3. 4. Call to Order Roll Call Approve Minutes of November 13, 1989 Resolution Establishing Fair Market Value and Just Compensation in the Amount of $ Iq~l~Q for a Portion of the Property Located at 4301-4461 Winnetka Avenue North, New Hope, HennepinCounty, Minnesota (Part of PID #18-118-21 11 0014) Authorizing Staff to Prepare Purchase Offer 5. Other Business 6. Adjournment CITY OF N~ ~DPE 4401 XYIDN AVenUE ~ ~ (I~3NTY, MINNESOTA 55428 November 13, 1989 City H~ll, 10:11 P.M. APPROVE MINUTES OF OCT. 23, 1989 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 10:11 p.m. Present: L'Herault, Otten, Erickson, Enck, Williamson Motion by Commissioner Enck, seconded by Commissioner Williamson to approve the F. DA minutes of October 23, 1989. All present voted in favor. President Erickson introduced for discussion Item 4, Consideration of Request byAutob~us/Thomas Boettcher to Assist in Financing the Acquisition of Property Located at 7675 42nd Avenue North (New Hope Animal Hospital). Mr. Donahue stated Mr. Boettcher is requesting that the City assist in financing the acquisition of the New Hope Animal Hospital at 7675 42nd Avenue North plus the property to the rear currently owned by the school district. The acquisition would allow Mr. Boettcher to expand his existing business and would also eliminate a non- conforming property. Ms. Rebecca Yanisch of Pubic Financial Systems w-as asked to analyze the request from a financial standpoint and she has pretk3redamemorandumdescribingthe financial transaction. Commissioner Enck inquired whetherthe parcel is adequate to build upon for a free-standing facility. Mr. Donahue stated it is a legal non-conforming and would not fit under today's code. Commissioner Enck next suggested combiningthethreeparcels as one property. Mr. Donahue stated it appears to be advantageous to combine the legal non-conformingwith the neighboring property if possible. Commissioner Enck stated he would like to have one owner for the entire area. Mr. Donahue stated the recommendation by the financial advisor is if the City wishes to pursue the low interest financing, that it does so through a lease program. The City would retain title to the property and lease it to Mr. Boettcher for a period of between 10 to 15 years. At the end of that time there would be a balloon payment equal to the amount of the cost of the demolition of the current Animal Hospital building. Also, any taxes to be paid would be berne November 13, 1989 by Mr. Boettcher. President Erickson questioned security. Mr. Donahue stated the security is the land itself as the City will own it. Mr. Dommhue explained thatMr. Boettcher proposed that Autohaus make a $20,000 down payment on the acquisition of the veterinary clinic, while the City finances the remaining $137,000 over 15 years at market interest rates. %hepayments on the City financed share would be secured byMr. Boettcher's personal guarantee. Mr. Donahue stated the purchase price would include the cost of the school district property. Commissioner Enck stated before the final decision is made he would like to have a form of security. The EDA informed staff that it is interested in pursuing the item and would like to discuss it again at a later date. Motion wasmadeby CommissionerEnck, seconded by Commissioner Otten to adjourn th e meeting. Ail present voted in favor. The New Hope EDAadjourned at 10:16 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope E~A Page 2 November 13, 1989 EDA RE UF_. ? FOR ACTION Originating Department Approved for Agenda Agenda Section EDA Management Assistant -27 - 89 Item No. By: Jeannine Dunn By: 4 RESOLUTION ESTABLISHING FAIR MARKET VALUE AND JUST COMPENSATION IN THE AMOUNT OF $/~. ~D0 FOR A PORTION OF THE PROPERTY LOCATED AT 4301-4461 WINNETK~ AVENUE NORTH, NEW HOPE, HENNEPIN COUNTY, MINNESOTA (PART OF PID #18-118-21 11 0014) AUTHORIZING STAFF TO PREPARE PURCHASE OFFER This resolution authorizes staff to make a Purchase offer in the amount of the appraisal for the property located east of the North Park Plaza VOA. This property would be utilized for the development of a 26 unit barrier free housing development. The appraisal will be available Monday night. Staff recommends approval. Review: Adm]n/stration: Finance: RFA-O01 ~ CITY OF NEW HOPE EDARESOLUTION NO. 89- RESOLUTION ESTABLISHING FAIR HARKET VALUE AND JUST COMPENSATION IN ~ AMOUNT OF $ FOR A PORTION OF THE PROPERTY LOCATED AT 4301-4461 WINNETKA AVENUE NORTH, NEW HOPE, HENNEPIN COUNTY, MINNESOTA (PART OF PID %18-118-21 11 0014) AUTHORIZING STAFF TO PREPARE PURCHASE OFFER part of the property located at 4301 through 4461 Winnetka Avenue North, New Hope, Minnesota (part of PID #18 118 21 11 0014) and commonly referred to as the property east of the Park Place Plaza VOA and west of the Winnetka Center Service Drive is contained within the Amended Redevelopment Plan 82-1, amended Redevelopment Project 82-1 and Amended Tax Increment Plan 82-1, as adopted by the Economic Development Authority (EDA) in and for the City of New Hope; and in accordance with the Uniform Relocation Assistance and Acquisition Policies Act of 1970 as amended, (The Act) the EDA has received an appraisal for said property. NOW, TR~.REFORE, BE IT RESOLVED, That the EDA hereby establishes the fair market value of the subject property in the amount of $ That the EDA provide just compensation to the property owners in the amount of $ . 3. That the City Manager or his designee is hereby authorized to prepare a purchase offer and begin negotiations for acquisition. Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 27th day of November, 1989. President Attest: Executive Director Official File Agenda #14 CITY OFNEWHOPE 4401 XYLON AVENUE NORTH HENNEPINCOUNTY, MINNESOTA 55428 EDA Regular Meeting #13 December 11, 1989 City Hall President EdwardJ. Erickson Commissioner Gary L'Herault Commissioner W. Peter Enck Commissioner GeraldOtten Commissioner MarkyWilliamson 2. 3. 4. e Call to Order Roll Call Approve Minutes of November 27, 1989 Consideration of Request by Autohaus/Thomas Boettcher to Assist in Financing the Acquisition of Property Located at 7675 42nd Avenue North (New Hope Animal Hospital) Resolution Authorizing Commencement of Eminent Domain Proceedings to Acquire Private Property East of North Park Plaza Within the City of New Hope Other Business Adjournment CITY OF N~ ~OPE 4401 XYION AV~rOE NORI~ H~NNEPIN (/~3NTY, M]]qNESO]I~ 55428 November 27, 1989 City Hall, 8:31 P.M. C~T,T, ~ ORDER APPROVE M/]qUTES OF NOV. 13, 1989 New Hope EDA Page 1 President Pro Tem Enck called the meeting of the Economic Development Authority to order at 8:31 p.m. Present: L'Herault, Otten, Enck, Williamson Absent: Erickson Motion by Commissioner Otten, seconded by Commissioner Williamson to approve the EDAminutes of November 13, 1989. All present voted in favor. City Manager, Dan Donahue, stated the appraisal has been concluded on the property located east of the North Park Plaza VOA. The property wouldbeutilized for the development of a 26-unitbarrier free housing development. He stated the property was appraised by Bjorklund, Carufel, Lachenmayer, Inc. at $173,000 based on $3 per square foot for 57,740 square feet. He stated that is the amount recommended as an offer to purchase the property. Mr. Donahue stated the property is owned bythe shopping center, there is no relationship with the VOAwhatsoever. Commissioner Williamson inquired whether there was a problem with the soil. Mr. Donahue stated not that he recalled but a soil test could be conducted. City Attorney, Steve Sondrall, stated prescreening of the property such as soil borings could bedone before an offer is made. Commissioner Otten asked what steps the EDA would take if the offer is rejected. Mr. Donahue. stated it could proceed through condemnation action. He cu~nted that the property must be tied up by December or else the handicap project cannot advance. He stated the grant request for the extension must be submitted by January 1, 1990. Mr. Donahue stated the property is in the tax increment district no. 6 and existing increment funds would be used to purchase the property. He explained that the EDA could authorize the condemnation in the case that the offer is not accepted. Mr. Sondrall explained that condemnation action could begin as soon as a resolution is adopted determining that the property is November 27, 1989 R~]A #89-7 Item 4 New Hope EDA Page 2 necessary and there is a public purpose. He stated negotiations could occur while the condemnation action is pending. Commissioner Otten inquired if a lower price could be offered. Mr. Sondrall responded that the offer has to be made based on the fair market value. Commissioner Williamson stated the property has been vacant for ten years. She commented that there is not 100 percent assurance by HUD that the property will be developed. She expressed concern regarding the risk of the EDA purchasing the property with no confirmed project. Commissioner Otten stated there has been a number of parties interested in purchasing the property; however, the lot is not a real buildable lot especially related to real estate/commercial property. Ms. Dunn stated the process could begin and HUD could be asked to conduct their site review and make a commitment to the City that the site is either approved or not approved prior to the quick-take condemnation option. Mr. Donahue stated he will proceed with the soil testing. Commissioner Otten introduced the foregoing resolution and moved its adoption: 'q~ESO~ONDRT.T.q~F~/~A/~KET~~JI/ST CC~kTION IN~/qEAMOUNTOF $173,000 FOR A PORTION OFR'HE PROPEK~Y LOCATED AT 4301-4461WINNETKAAV~K/ENORR}{, NEW HOPE, H~qNEP~ COUNTY, MINNESOTA (PART OF PID #18-118-21 11 0014) A~RIZINGSTAFF TO PREPAREI~3q{CHASEOFFER". The motion fort he adoption of the foregoing resolution was seconded by Commissioner Williamson, and upon vote beingtaken thereon; the following voted in favor thereof: L'Herault, Otten, Enck, Williamson; and the following voted against the san~: None; absent: Erickson; whereupon the resolution was declared duly passed and adopted, and was signed by the president whichwas attested tobythe secretary. Commissioner Otten stated the motion authorizing the $173,000 offer is contingent upon HUD's approval. Mr. Sondrall informed the EDA that the purchase agreement will be made contingent upon approval by HUD and favorable envirorm~ntal testings to ensure that the property can beused for the intended purpose. Motionwas made by Commissioner Williamson, seconded by Commissioner L'Herault to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:55 p.m. Respectfully submitted, Valerie Leone City Clerk Nover0ber 27, i989 ~ EDA REQUEST FOR ACTION O~g~g Department Approved ~rAgenda Agenda Section Management Assistant EDA 12-11-89 Item No. By: Jeannine Dunn By: 4 / CONSIDERATION OF REQUEST BY AUTOHAUS/THOMAS BOETTCHER TO ASSIST IN FINANCING THE ACQUISITION OF PROPERTY LOCATED AT 7675 42ND AVENUE NORTH (NEW HOPE ANIMAL HOSPITAL) Mr. Thomas Boettcher is requesting that the City assist in financing the acquisition of the New Hope Animal Hospital at 7675 42nd Avenue North. The acquisition would allow Mr. Boettcher to expand his existing business, and would also eliminate a non-conforming property. The EDA considered this request on November 13, 1989, and asked staff to develop a loan package which would have adequate security. Rebecca Yanisch, Public Financial Systems, has examined the financial statements of Mr. Boettcher and Autohaus and has developed some options which are outlined in the attached memorandum. MORON BY SECOND BY Renew: Admini~ration: F~ance: RFA-O01 ~ $ Mllq'NESOT^ $$402 27.q9 sECOND AVI~NLTE SL£, e, CI~D~ R~P~.D$, IOWA ~12403 DATE: TO: FROH: RE: December 8, 1989 Dan Donahue, City of New Hope Rebecca Yantsch, Public Financial Systems, Inc. Response to EDA Concerns Regarding Autohaus Financings Request On Monday, November 13, the New Hope EDA met to consider the Autohaus expan- sion issues, which included a request for financial assistance. After review- ing the financial request, the EDA stated that the current proposal was unacceptable and that any involvement financially by the £DA must be fully collateralized. I contacted Mr. Boettcher to relay the EDA concerns and comments. I stated that the financial statements submitted by him show an equity amount in the commercial building that would be adequate to fully secure the City's finan- cial exposure. Hr. Boettcher responded that he would be unable to provide a second mortgage for security to the City since he intended to use that financing source for the expansion, acquisition of the land currently owned by the school board and site improvements. Mr. Boettcher suggested the following arrangement: . Increase the cash up front from SZO,O00 to $Z5,000. . Shorten the loan term from 15 years to 8 years. · Add a corporate guarantee in addition to the personal guarantee. · Carry a life insurance policy for Mr. Boettcher in the amount of the City loan. · Do not replat the clinic parcel. The City would then have first lien on the property to be acquired. With the additional cash up front, the City loan would amount to 84 percent of the acquisition cost of the parcel. However, the amount of the City loan would still be Z times the value of the land after clearing the existing building. By shortening the term of the loan, a much more significant amount of principal would be paid in the earlier years of the loan. The third point of Hr. Boettcher/s proposal, the addition of'the corporate guarantee, may be the most significant improvement in the proposal. Currently, the stock- holder's equity in Autohaus is 3 times the requested loan amount. Since Mr. Boettcher is key to' the success of the Autohaus, it seems logical that a life Insurance policy in the amount of the City loan be in place. The final issue, that of the City holding a lien on the property to be acquired, raises a conflict with the current zoning code. The conditional use permit for outdoor display of automobiles requires one parcel of property. TO P. 83 Memorandum December 8, 1989 Page Two Another option not suggested by Mr. Boettcher would include a third mortgage on the commercial property. However, the third mortgage would be of question- able value in terms of enhancing the security for the City loan. The third mortgage would have more of a negative impact on use of the building for further expansion or funds. In my opinion, the negative drawbacks would be more than the additional positive security provided by the third mortgage, As a final point, Mr. Boettcher does still anticipate that the City would incur the cost o~ demolishing the current building on the site. Hopefully this memorandum helps clarify the issues and Will enabl? the £DA to address the policy questions that are associated with the financing request, The inclusion of the corporate guarantee, the additional cash payment, and the reduction in the lease term should be sufficient to allay much of the concerns on the collateraltzation. It is difficult to provide more security without constricting the growth and future success of the Autohaus business. If you need any further clarification on these points, feel free to contact me. TOTAL P.03 · REQUF_~T FOR ACTION Orig~at~g Depm~ent Appmved ~rAgenda AgendaSection Management Assistan'- 12-11-89 Item No. By: Jeannine Dunn By: 5 RESOLUTION AUTHORIZING COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PRIVATE PROPERTY EAST OF NORTH PARK PLAZA WITHIN THE CITY OF NEW HOPE On November 27, 1989, the HRA authorized staff to make a purchase offer with contingencies to the owners of the property located east of North Park Plaza VOA. The contingencies included: 1. Soil suitable for development of a 26-unit housing complex. 2. Site approval by HUD for the 202 mortgage loan program. The City offered $173,000 for the property. The property owner has not accepted the offer, but has asked for a copy of the appraisal and assurance that the City would allow expansion to the north of the existing Tyra's Country Store. In order to continue to move along on the project, staff recommends that the EDA approve the resolution. The resolution does not implement the quick take procedure. MORON BY ~/~q C/'~-~ SECOND BY Renew: Administration: Finance: ~ RFA-O01 EDA RESOLUTION NO. 89- RESOLUTION AUTHORIZING COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PRIVATE PROPERTY EAST OF NQRTH PARK PLAZA WITHIN THE CITY OF NEW HOPE BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope, Minnesota, as follows: WHEREAS, the Housing and Redevelopment Authority in and for the City of New Hope (hereafter HRA) established Redevelopment Plan 82-1 and Redevelopment Project 82-1, and WHEREAS, said redevelopment plan and redevelopment project was established under the authority of Minn. Statutes Chap. 462 and 469 pursuant to studies undertaken by the City of New Hope which have shown that redevelopment activities in the plan area are warranted to correct problems which cannot be corrected by private enterprises or regulation alone, and WHEREAS, the New Hope City Council has transferred control of Redevelopment Plan 82-1, Redevelopment Project 82-1, Financing Plan 82-1 and District 82-1 from the HRA to the Economic Development Authority in and for the City of New Hope (hereafter EDA), and WHEREAS, the EDA adopted a 1989 amendment to Redevelopment Plan 82-1 and Financing Plan 82-1 which is entitled "1989 Amendment to Redevelopment Plan 82-1 and Tax Increment Financing Plan 82-1" (hereafter the 1989 Amendment). The 1989 Amendment expands the area subject to Redevelopment Plan 82-1 to include the following property: That part of the North 350.09 feet of the West 1/2 of the NE 1/4 of the NE 1/4 lying east of the West 409.11 feet thereof except r°ads, Section 18, Township 118, Range 21. WHEREAS, the 1989 Amendment serves the original goals and purposes of the City of New Hope and the HRA in approving Redevelopment Plan 82-1, Redevelopment Project 82-1 and Financing Plan 82-1 by providing needed public facilities which will benefit all residents of the City and by providing additional housing facilities for physically challenged perspns of low and moderate income on the property described above, and WHEREAS, the EDA does hereby determine that the acquisition of this property is reasonably necessary and convenient to the furtherance of the goals and objectives of the redevelopment plan and redevelopment project, as indicated above, and that in its judgment the acquisition of this property will be for the benefit of the public health, welfare and safety of the citizens of New Hope, and WHEREAS, Minn. Stat. Section 469.012, Subd. 1(6) gives the EDA the authority to acquire property by power of eminent domain under Minn. Stat. Chapter 117 if necessary to carry out a redevelopment plan and redevelopment project, and WHEREAS, the EDA does hereby determine it is necessary to acquire this property by eminent domain proceedings, NOW, THEREFORE, BE IT RESOLVED by the EDA: 1. That the Executive Director or his designated representatives are authorized to file the necessary Petition and notices to acquire by eminent domain proceedings under Minn. Stat. Chapter 117 the property legally described as follows: That part of the North 350.09 .feet of the West 1/2 of the NE 1/4 of the NE 1/4 lying east of the West 409.11 feet thereof except roads, Section 18, Township 118, Range 21. 2. That the Executive Director or his designated representatives are hereby directed to prosecute said eminent domain action to a successful conclusion or until it is abandoned, terminated or dismissed by the Court. 3.~ That the Executive Director or his designated representatives are hereby directed and authorized to obtain additional appraisals necessary to establish fair market value and just compensation for said property in preparation for said eminent domain proceedings. Dated: Edward J. Erickson, Chairman Attest: Daniel J. Donahue, Executive Director Official File Agenda #15 CITY OFNEWHOPE 4401XYLON AVENUE NORFH HENNEPINCfX3bTfY, MINNESOTA 55428 EDA Regular Meeting #14 26, 1989 City Hall President Edward J. Erickson CuLL.missioner Gary L'Herault Cu~issioner W. Peter Enck Commissioner Gerald Otten Commissioner Marky Williamson 1. Call to Order 2. Roll Call 3. Approve Minutes of December 11, 1989 4. Executive Session Regarding Eminent Domain Proceedings. for the Property East of North Park Plaza, City of New Hope, Minnesota 5. Other Business 6. Adj ouz] u~nt CITY OF N~W HOPE 4401 XYLON AV]D~trE ~ ~ fX~f, MI/~ESOI]% 55428 De~ 11, 1989 City }~1l, 9:11 P.M. APPROVE MINUTES OF l~O~. 27, 1989 PR0~DINGS I~5 RESOLUTIC~ #89-8 Item5 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 9:11 p.m. Present: L'Herault, Otten, Erickson, Enck, Williamson Motion by Co~,~ssionerEnck, seconded byCommissioner L'Herault to auprove the EDAminutes of November 27, 1989. All present voted in favor. President Erickson stated Item 5 will be discussed prior to Item 4. President Erickson introduced for discussion Item 5, Resolution Authorizing Con~en~t of Eminent Domain Proceedings to Acquire Private Property East of North Park Plaza Within the City of New Hope. Mr. Donahue stated on November 27, 1989, the HRA authorized staff to make a purchase offer with contingencies to the owners of the property located east of North Park Plaza VOA. The purchase is contingent upon suitable soils for the housing complex and site approval by HUD. The City offered $173,000 for the property and the property owner has not accepted the offer. Mr. Denahue stated in order to continue with the project, staff rec~ut~nds adopting the EDA resolution. Om~u~ssionerWilliamson inquired whetherthis would lockthe City into the property. Commissioner Enck stated the resolution does not implementthe quick take procedure andthe Citycould still back out after negotiations. Co~tu~ssionerEnck introducedthe foregoing resolutionandmo~ed its adoption: '~{ESO~ON~ZINGC~OF~iN~T~ P~DCEED~TOA~PRIVATEPRDPERTYEASTOFNORiHPARKPLAZA ~~E CITY OFNEWHOPE,,. The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon votebeingtakenthereon; the following voted in favor thereof: Erickson, L'Herault, Otten, Enck, Williamson; and the following voted against the same: None; absent: None; whereuponthe resolution was declared dulyp~ssedandadopt~, and was signed by the president whichwas attested tobythe secretary~ December 11, 1989 AUTOHAUS New Hope EDA Page 2 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 42nd Avenue North (New Hope Animal Hospital). The acquisition would allow Mr. Boettcher to expand his existing business and would also eliminate a non-conforming property. The EDA considered this request on November 13, 1989, and asked staff to develop a loan package which would have adequate security. Ms. Rebecca Yanisch, Public Financial Systems, examined the financial statements of Mr. Boettcher and Autohaus and b~s developed options. Mr. Donahue stated Mr. Boettcher has requested $134,000 of iow interest financing. He stated approximately $60,000 would be unsecured. Mr. Donahue stated the EDA feels any financial involvement should be fully collateralized. President Erickson c~m-~_nted that Mr. Boettcher would have a life insurance policy in the amount of the City loan. Mr. Thomas Boettcher was present and addressed the EDA. He stated he could increase the cash from $20,000 to $25,000 and shorten the loan term from 15 years to 8 years. Mr. Boettcher stated the property will enhance the entire area. He stated if a problem with Autohaus developed, the property would be sold as a 'package' He commented that no one would want to co, me in and purchase the building as it currently exists without the extra property. He stated his intent in buying the school district property in the rear is to protect his equity position. He cu, L,~nted that he will be investing $40-50,000 for lights, paving, etc. President Erickson stated this should be viewed at as part of the redevelopment project for 42nd Avenue. Co~-~-,issioner Williamson inquired regarding the platting of the property. City Attorney, Steve Sondrall, stated if the EDA owned the title to the Animal Hospital property the City would remove that property from the final plat and it would be held separately. He explained that an arrangement could be made to require replatting when the lease arrangements have been completed. He stated the option currently being considered is a simple lease arrangement with an option to purchase at the end of the lease term. Cu~m~,issioner Enck stated the value of the land without the building is $51,600. He asked whether the parcel is sufficient size, etc. to comply with the City's requirements if the building is removed. Mr. DoD2ihue stated it would be non-conforming and it could not be redeveloped under the current code. Commissioner Enck stated the property, as a legal non-conforming property, should be valued December 11, 1989 New Hope EDA Page 3 closer to $25,000. Coit,,t,~ssioner Enck expressed a concern with the risk involVed to the EDA. President Erickson co~tat~nted that even though New Hope may never have financed such a project there are other cities who have. Mr. Boettcher stated he disagrees with the value of the property. He co~tat~nted that next spring his business will be debt free other than its inventory and mortgage which every other dealership in Minneapolis has. He commented that the business has tripled its profits since its first year. He stated four to six percent of the business comes off the street. Mr. Boettcher stated that if they acquire the frontage property even if that figure increases just to ten percent, it would be pure profit. President Erickson stated one of the first decisions that the EDA must make is whether or not the City wishes to participate in the financing of the animal hospital property. A vote was taken by the Council: Otten and Erickson voted in favor; L'Herault and Enck were ~pposed; and Williamson stated she is undecided at this time but she would approve if there was no risk involved to the City. Mr. Boettcher commented that he plans to pay cash for the school district property. Dr. Herman stated the city needs to view it as part of upgrading 42nd Avenue rather than only viewing it from a financial standpoint. Mr. Boettcher stated that he has an excellent credit rating. President Erickson stated the financial security is the issue which must be resolved. Mr. Boettcher stated he will try to increase the cash up front and shorten the loan term. He stated his next step will be to meet with the school district. President Erickson stated the EDAwill discuss the item again at their December 26, 1989, meeting. Motion was made by Col~,~ssioner Enck, seconded by Commissioner Williamson to adjourn the n~ing. All present voted in favor. New Hope EDA adjourned at 10:00 p.m. ~ne Respectfully submitted, Valerie Leone City Clerk December 11, 1989 EDA REQUF T FOR ACTION Originating Department Approved for Agenda Agenda Section Management Assistant~-~ F~DA .~! ) 12-26-89 Item No. By: Jeannine Dunn By:[// 4 EXECUTIVE SESSION REGARDING EMINENT DOMAIN PROCEEDINGS FOR THE PROPERTY EAST OF NORTH PARK PLAZA, CITY OF NEW HOPE, MINNESOTA Staff requests that an executive session be called to discuss the eminent domain proceedings for the property east of North Park Plaza. Review: Administration: Finance: RFA-O01 ~