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022805 EDA CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes February 28, 2005 Regular Meeting City Hall CALL TO ORDER President Opem called the meeting of the Economic Development Authority to order at 10:03 p.m. ROLL CALL Present: Martin Opem, President Mary Gwin-Lenth, Commissioner Andy Hoffe, Commissioner Karen Nolte, Commissioner Steve Sommer, Commissioner APPROVE MINUTES Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner Sommer, to approve the Regular Meeting Minutes of December 13, 2004. All present voted in favor. Motion carried. IMPROVEMENT President Opem introduced for discussion Item 4, Discussion and update PROJECT NO. 734 regarding concept plans for the proposed development of 4301-4317 Nevada Item 4 Avenue North. Director of Community Development Kirk McDonald gave the following background on the project. In August 2003, the city completed the purchase of 4317 Nevada Avenue North. The property was acquired through the city’s scattered site housing program using federal CDBG funds which primarily benefit low to moderate-income households. This development is CDBG eligible and the property was recently demolished. Northwest Community Revitalization Corporation (NCRC) acquired the property at 4301 Nevada Avenue North in February 2004 in anticipation of partnering with the city on a redevelopment project. NCRC has been successful in obtaining funding to support this CDBG eligible project. Hennepin County HOME has awarded $294,000 of support to the project as well as $50,000 of CDBG funding from the Consolidated Pool. The city of Robbinsdale made the successful application to the CDBG Consolidated Pool. On April 26, 2004, the New Hope City Council approved a sale/development contract with NCRC for the concept development of six affordable owner-occupied zero lot line twin homes (3 twin homes) or townhomes (2 triplexes), on the combined site. At that meeting, staff and NCRC indicated that one of those units would be accessible. The Council EDA Meeting Page 1February 28, 2005 directed staff and NCRC to develop a proposal that would make two of those units accessible. Since that time, NCRC has retained the services of a new architect, and the proposal has been revised to include two accessible units. On September 13, 2004, city staff presented a 6-unit town home redevelopment plan to the EDA. At that time, the EDA expressed reservations regarding the proposed development because of the small association that would be required to manage the site. The EDA encouraged NCRC to acquire the site at 4415 Nevada Avenue North for inclusion in the overall redevelopment. NCRC made numerous attempts to acquire the site for the appraised value. Because of constraints associated with using CDBG and Hennepin County HOME funds to acquire property, the owner and NCRC could not agree on a price that was within the provisions set forth by Hennepin County and HUD. Mr. McDonald introduced Community Development Specialist Shawn Siders to give additional background. Mr. Siders explained that the proposed development will consist of six owner occupied twinhome units. Three two-story units will have 1,640 square feet of living space with an unfinished basement. The three handicap accessible units will have 1,240 square feet of living space with an unfinished basement. Each unit will have a two-car garage located at the front of the unit and the handicap accessible units will have room to install a ramp inside the garage which can be installed by the owner. The three two story units will have three bedrooms and two bathrooms. The three accessible units will have two bedrooms and one large accessible bathroom. Because of the unfinished basements, homeowners will have the opportunity to expand the living area within the existing foot print of the house. All six units will have the same floor plan; however, the project architect has designed the façade of each unit to have a different appearance. The design of the units is similar to the architectural features that are found in the neighborhood. The concept plans highlight the façade treatment for each unit. Because of the twinhome design, it will be necessary for six curb cuts to be installed on Nevada Avenue North. The executive director of NCRC, Kristine Madson was introduced. She thanked Council for the opportunity to return with a new set of plans. She related the following information. NCRC is a nonprofit corporation that evolved from a collaborative formed by the Northwest Hennepin Human Services Council (NWHHSC) in 1991. This collaborative, Communities Organizing Opportunities for People (CO- OP) Northwest involved cities, school districts, community groups and other organizations in the northwestern suburbs in identifying and addressing growing poverty and needs in the region. CO-OP Northwest EDA Meeting Page 2February 28, 2005 Community Revitalization Corporation (CNCRC) evolved from this effort and became a Community Housing Development Organization (CHDO) in 1995. The original cities in which activities were to be carried out were Brooklyn Center, Brooklyn Park, Crystal, New Hope and Robbinsdale. In 1999 the CNCRC separated from NWHHSC and became the Northwest Community Revitalization Corporation (NCRC). The cities currently active in NCRC are Brooklyn Park, Maple Grove, New Hope and Robbinsdale. The communities that NCRC serves have historically been proactive in meeting the housing needs of all their residents. With housing costs rising rapidly in all of the area cities, it is increasingly difficult for many residents to purchase homes in the communities in which they live and work. The demand for home ownership is high, but the price of housing prohibits many people from buying their own homes. NCRCs main goals include both the preservation of the existing affordable housing stock and the creation of new units. The member cities and NCRC have recognized a growing need for home ownership opportunities for households of low to moderate income, including households in which a member is disabled. NCRC has worked with its members for over a dozen years to rehabilitate existing housing while developing new units at more than a dozen sites. Home ownership stabilizes households and increases investment in communities. A variety of housing choices provide residents with the ability to live and work in a community. A solid housing market also provides additional economic development opportunities as businesses target communities that have stable, high quality housing choices for all their residents. Additional homeownership opportunities, such as what is being proposed by NCRC can be a catalyst for revitalization efforts in the adjoining neighborhood. Recently, the entire metropolitan region has experienced large increases in the prices of homes. Wages have not kept pace with rising costs, leaving many working families with no option but to rent, even though rents have also escalated and many rental properties are in need of significant repairs. There is a strong demand for “workforce housing,” housing that is affordable to first time homebuyers. The price of housing in the City of New Hope has escalated at a rate slightly higher than the metropolitan area. Projects such as the Nevada Avenue Twin Homes have provided many residents with various housing choices that may not have otherwise been available. These projects are only possible, with the strong support of local governments, such as the city of New Hope. Gene Nicolelli, architect, came forward. Mr. Nicolelli has provided preliminary drawings of the site, a model floor plan of an accessible and two-story unit as well as an elevation. EDA Meeting Page 3February 28, 2005 NCRC is in the process of seeking contractors for soil/environmental testing that is required and for the demolition of the building at 4301 Nevada Avenue. The City of New Hope’s contribution in the sale of 4317 Nevada to NCRC for $1.00 is significant. Because of the limited number of units that can be constructed on this site, the twinhome design makes the most efficient use of the site. Commissioner Gwin-Lenth commended NCRC for listening to Council last time and coming back with a new set of drawings that are exciting. Even little things like roof lines similar to the neighborhood are impressive. The architect wanted to make sure the homes fit in the existing neighborhood and designed roof pitches, colors, etc. so they would not stick out. Commissioner Gwin-Lenth is happy with that as well as the design and size of the rooms; the flow of all the units is well done. Her disappointment is that 4415 is not able to be included at this point to give a bit more space. But she is excited in seeing them go ahead as developer with the two properties. Ms. Madsen explained that they have been negotiating with 4415 but the owner went into a care facility and NCRC wanted to wait until the family issues are resolved. Price is an issue. Two appraisals were done and the asking price is greater than the appraisals. She feels that at some point, they will probably move forward. If it is purchased, there could be another two- unit building added to the project. Bob Zagaros, a former Council Member of Robbinsdale who also sat on the NCRC board came forward. He stated that NCRC has taken what was available and made it better. The success rate of people in their homes is very high. Collectively they can bring federal funds back to our area. Robbinsdale requested the $50,000 for this project in an effort to take the next step. The development fee will help NCRC move forward with its mission. He is excited about the project, especially the accessible homes. New Hope will go from $900 to $5,600 per year in taxes on this property. President Opem commended NCRC for doing a nice job. The units are attractive and have a good flow and the basements are separated with concrete and a one-hour fire wall rating. Commissioner Gwin-Lenth asked Scott Dehn to come forward and speak to how he and his wife are getting along in their relatively new home, an accessible home built by Habitat for Humanity on West Broadway. Commissioner Gwin-Lenth noted that some staff and Commissioners spent a day working on the construction of the house. Scott talked about how the accessible home meets a real need of his. It is hard to find accessible housing in the Twin Cities and the area needs more projects like his home. He emphasized how important it is to own your own home and commended the City of New Hope for being committed to constructing additional accessible and affordable homes. EDA Meeting Page 4February 28, 2005 Commissioner Gwin-Lenth thanked him for coming forward and helping all to clearly understand how accessible homes make a real difference. Ms. Madson added that Scott sits on the NCRC board. Mr. McDonald asked the EDA for feedback on the plans and received encouragement from the EDA to move forward on the project. Twin homes are easier for the city to maintain than a 6-unit association and the plan is much better than before. Commissioner Gwin-Lenth encouraged NCRC to continue trying to purchase the other property. President Opem polled the EDA and all agreed the project looks good. Commissioner Hoffe thanked Robbinsdale, too. ADJOURNMENT Motion was made by Commissioner Sommer seconded by Commissioner Nolte to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 10:31 p.m. Respectfully submitted, Eve Lomaistro Human Resources Coordinator EDA Meeting Page 5February 28, 2005