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
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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
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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.
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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.
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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
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