032805 EDA CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
March 28, 2005
President Martin Opem Sr.
Commissioner Mary Gwin-Lenth
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
Call to order
Roll call
Approval of regular meeting minutes of February 28, 2005
Discussion and update regarding concept plans for the proposed development of
city-owned property at 7500-7528 42® Avenue North, the former Electronic Industries
site (improvement project no. 740)
Discussion and direction regarding redevelopment plans for 5207 Pennsylvania
Avenue North (improvement project no. 775)
Discussion and direction regarding proposed purchase of 4415 Nevada Avenue
North
Motion authorizing staff to request engineering estimate from Xcel Energy for burial
of overhead utilities from north side of Bass Lake Road to 58th Avenue North in
conjunction with Winnetka Townhomes redevelopment project (improvement project
no. 770)
8. Adjournment
CiTY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes
Regular Meeting
February 28, 2005
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMPROVEMENT
PROJECT NO. 734
Item 4
President Opem called the meeting of the Economic Development Authority
to order at 10:03 p.m.
Present:
Martin Opem, President
Mary Gwin-Lenth, Commissioner
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
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.
President Opem introduced for discussion Item 4, Discussion and update
regarding concept plans for the proposed development of 4301-4317 Nevada
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 sudcessful application to the CDBG Consolidated
Pool.
EDA Meeting
Page 1
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
February 28,2005
EDA Meeting
Page 2
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 acc6ssible 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 flopr plan; however, the project architect has
designed the facade 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 facade 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
February 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 housin~ 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 3
February 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
availabl.e 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 4
February 28, 2005
ADJOURNMENT
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.
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 5
February 28,2005
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agen~la Section
Community Development (~ 3-28-05 EDA
By: Kirk McDonald, Director of CD By:~Z' Item No.
Shawn Siders, CD Speciahst 4
DISCUSSION AND UPDATE REGARDING cONCEPT PLANS FOR THE PROPOSED DEVELOPMENT OF
CITY OWNED PROPERTY AT 7500-7528 42Nv AVE. N., THE FORMER ELECTRONIC INDUSTRIES SITE
(IMPROVEMENT PROJECT NO. 740).
REQUESTED ACTION
Staff requests EDA discussion and direction regarding the proposed office condominium/restaUrant and
ancillary retail development on the city owned prOperty at 7500-7528 42na Avenue North. The development
proposal is for three uses: a Viva Italia restaurant and limited ancillary retail uses on the western portion of
the site and three office condominium buildings (8 separate ownership units) on the eastern portion of the
site.
POLICY/PAST PRACTICE
City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties
within the city. The EDA has been addressing the commercial portion of this goal.through the city's many
development activities, including coordinating with potential developers for the sale and development o£ city
owned property. The EDA often directs staff to coordinate with potential developers and the City's financial
Consultant to investigate the feasibility of redevelopment.
BACKGROUND
Over the past ten Years, the city has acquired and demolished all three industrial parcels at the intersection of
42na and Quebec Avenues to promote community development and clean up the contaminated former
Electronic Industry site. The properties were acquired and demolished with Tax Increment Finance (TI_F)
funds, tn order to expedite the clean-up of the contaminated groundwater on the site, the city made
successful application to the State of Minnesota and Hermepin County to fund the clean-up of the
groundwater. Electronic Industries covered the cost sharing portion of that grant and to date, the
environmental remediation efforts are complete and development can commence. In order to receive a "close
out" letter &om the Minnesota Pollution Control Agency (MPCA), the city must submit the proposed
redevelopment site plan to MPCA to ensure it conforms with the "Declaration of Environmental Restrictive
Covenants" agreement that was approved by the city and MPCA.
MOTION BY ~/'~/)/~ '.~.~ ~. SECOND BY
TO:
h \ RFA \ PLANNING \ Electronic Industries \ 2005 Development Proposal - Freer Condo & Viva Italia.doc
Request for Action Page 2 March 28, 2005
Once those plans have been approved by MPCA, it will issue a "close out" letter indicating the proposed
development conforms with the provisions set forth by MPCA. Continuous monitoring of the groundwater
will occur and those costs will be paid by Electronic Industries.
On November 24, 2003, the City Council approved a Purchase Agreement with JCS Development, Inc. and
Frey Development, Inc. for the redevelopment of the city owned property at 7500-7528 42na Avenue North.
JCS had proposed to construct a Culver's restaurant on the western portion of the property and Frey
Development had proposed to develop eight office condominium units on the eastern half of the property.
The purchase agreement stipulated that Frey Development would pay the city $130,000 plus cover the city's
brokerage fees of $20,000. JCS Development, Inc. had agreed to pay the city $380,000 plus cover the city's
brokerage fees of $20,000. The total sales price would have been $510,000 plus $40,000 of brokerage fees.
On April 21, 2004, JCS Development Inc. notified the city that it was canceling the approved purchase
agreement for the western half of the property. JCS identified the close proximity of this site to other Culver's
Restaurants as the principal reason for canceling the purchase agreement.
When JCS Development, Inc. withdrew from the approved purchase agreement, the City Council approved
an exclusive representation agreement with Retail Site Development Services (RSDS) to assist in securing a
suitable restaurant for the western half of the site. That agreement expired in November 2004 and there is a
six month provision which lists Frey Development a "protected developer" by RSDS. Because of that status,
the brokerage fees for this developer will apply and Frey Development will pay those in accordance with the
terms of the City's agreement with RSDS.
In September 2004, Frey Development contacted the city to determine the City's interest in selling the entire
property to it for the redevelopment of the entire site. Frey Development proposed the construction of the 8
office condominium units as well as an 8,500-9,000 square foot retail building on the western half of the
property. Frey Development proposes that Viva Italia would rent approximately 5,000-6,000 square feet of
the space and the remaining space would be reserved for limited retail opportunities. Frey Development has
committed to working with the city to find potential acceptable tenants for the remaining space.
On January 3, 2005, Frey Development and Manly Land Development submitted a redevelopment proposal
for the entire site in conformance with previous discussions. The concept plan outlines the proposed
development of this site. Frey Development has agreed to purchase the site from the city for $510,000. The
developer will have to pay all customary fees for the deVelopment of this parcel which include but not limited
to stormwater fees, building permit fees and SAC charges as they may apply. Frey Development has also
agreed to provide the city with an indemnification agreement regarding brokerage fees. Frey Development
will be responsible for directly paying all brokerage fees to Retail Site Development Services (RSDS). An
excerpt of the Letter of Intent is as follows:
"Frey Development, Inc. currently has the easterly haft of the site under contract with the intent of
constructing eight office condominium units. Frey Development, Inc. will partner with Manley Land
Development in developing this project.' Frey Development, Inc. will handle the administrative and
marketing portions of the project and Manley will provide the financing and general contracting. Frey
Development, Inc. and Manley Land Development just completed a similar twelve-unit project in Bumsville
called Sunset Ponds Office Park.
Request for Action Page 3 March 28, 2005
Frey Development Inc. and Manley Land Development would also like to develop the balance of the site. It
would be our intention to construct a 8,500 square foot to 9,000 square foot retail center. Manley Land
Development has a very similar project currently under construction in Eagan called Centennial Ridge.
I understand the city of New Hope's strong desire to have a full service restaurant in that location. The
Centennial Ridge project has two retail building totaling about 18,000 s.f. An Italian restaurant called Viva
Italia anchors one of those buildings. This medium priced restaurant will seat about 100 and will open in mid
January. The owners of Viva Italia would like to add a second location in the northwest metro area and like
the New Hope location. Viva Italia would take between 5,000 to 6,000 s.f. and would be very similar in design
to the Eagan location. It would require wine and beer license minimum or a full liquor license if possible.
The balance of the space would be available for other retail users. We would work with the city in securing
tenants types they desire."
The Mayor, City Manager and Director of Community Development visited the Viva Italia restaurant that
recently opened in Eagan, Minnesota. Photographs of the proposed restaurant are included in this packet.
NEXT STEPS
o City staff seeks discussion and direction regarding the redevelopment proposal submitted by Frey
Development, Inc. on January 3, 2005.
o If the City Council directs staff to pursue the redevelopmerit of this site with Frey Development and
Manley Land DeVelopment, city staff will prepare a proposed term sheet that will be forwarded to the
City Council for further direction.
Once the proposed term sheet is finalized, city staff will prepare a proposed "Purchase Agreement"
that will be considered by the City Council.
o If the City Council directs staff, it will prepare a resolution scheduling a public hearing regarding the
proposed sale and the City Council will conduct a public hearing to receive comment regarding the
proposed redevelopment.
This project will proceed through the normal planning approval process. Additionally, city staff will
work with MPCA to ensure this redevelopment proposal conforms to the Declaration of
Environmental Restrictive Covenants" agreement.
o City staff would recommend that the purchase agreement stipulate that the transfer of the property
will not occur until all of the plarming approvals have been received by the City. This provision will
ensure that the EDA has the opportunity to offer comments regarding the proposed tenants. This
provision is similar to the Nevada Avenue Twinhome purchase agreement.
o If the purchase agreement is approved and a public hearing conducted, city staff will take the
necessary actions to transfer this property to Frey Development, Inc. and Manley Land Development.
RECOMMENDATION
Staff supports the development concept and recommends that the EDA direct staff to prepare a "term sheet"
with the developer. The proposed purchase price is the same that was previously approved with JCS
Development, Inc. and Frey Development, Inc. If directed, staff will initiate the process of transferring this
site to Frey Development, Inc. and Manley Land Development, Inc.
ATTACHMENTS
o Letter of Intent, Frey Development, Inc.
o Proposed redevelopment plans
o Photographs of Viva Italia in Eagan, Minnesota
4801% Nicollet Ave. South, Minneapolis, MN 55409
612-827~4201, 612-8274331 fax
Frey Development, Inc.
January 3,2005
Mr. Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: City or New Hope Development Site - NE Comer of 42nd and Quebec Ave.
Dear Mr. McDonald:
This letter is to vedfy our desire to develop the complete site located in the northwest comer of
42nd Ave. and Quebec Avenue.
Frey Development, Inc. currently has the easterly half of the site under contract with the intent of
constructing eight office condominium units. Frey Development, Inc will partner with Manley Land
Development in developing this project. Frey Developmerit, Inc. will handle the administrative and
marketing portions of the project and Manley will provide the financing and general contracting.
Frey Development, Inc. and Manley Land Development just completed a similar tWelve-unit
project in Burnsville called Sunset Ponds Office Park.
Frey DeveloPment, Inc. and Manley Land Development would also like to develop the balance of
the site. It would be our intent to construct a 8,500 s.f. to 9,000 s.f. retail center. Manley Land
Development has a Very similar project currently under construction in Eagan called Centennial
Ridge.
I understand the City of New Hope's has strong desire to have a full service restaurant in that
location. The Centennial Ridge project has two retail building totaling about 18,000 s.f. An Italian
restaurant called Viva Italia anchors one of those buildings. This medium priced restaurant will
seat about 100 and will open in mid January. The owners of Viva Italia would like to add a second
location in the northwest metro area and like the New Hope location. Viva Italia would take
between 5,000 and 6,000 s.f. and would be very similar in design to the Eagan location. It would
require wine and'beer license minimum or a full liquor license if possible.
The balance of the space would be available for other retail users. We would work with the city in
securing tenants types they desire.
The ownership of the retail building would be a partnership of the principals of Frey Development,
Inc. and Manley Land Development. It would be developed in together with the office condo
project. Viva Italia would be owned by Danny Samo and Kurt Manley.
Information regarding Manley Land Development is attached as Well plans of the Viva Italia
restaurant in Eagan. Please call if you have question or need additional information. Thanks
Sincerely,
Bernie Fre~
QNORTH ELEVATION
QWE~T ELB/^TI~
QSOUTH ELEVATION- UNCHANGED
CENTENNIAL RIDGE
RETAIUOmCE
DEVELOPMENT
VIVA ITAUA
DIFFLEY ROAD
EGAFL MN
EXTERIOR
ELEVATIONS
£ONSI~UCflON OOCUMS~S
GENLARGED WAmNG AREA PLAN
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(INIERIOR
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UU~ L
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(~) ENLARGED BOOTH PLAN
CENTENNIAL RIDGE
RETAILJOmCE
DEVELOPMENT
VIVA ITALIA
DIFFLLq' ROAD
EGAN, MN
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ENLARGED
PLANS &
INTERIOR
ELEVATIONS
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OREFERENCE PLAN
MA~L/~ rL~D
CENTENNIAL RIDG~
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DEVELOPMENT
VIVA ITRLIA
DIFFLEY ROAD
EGAN, MN
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CENTENNIAL RIDGE
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VIVA ITALIA
DIFTLEY ROAD
EGAN, MN
INTERIOR
ELEVATIONS
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EDA
. REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development ~\ 3-28-05 EDA
Item No.
By: Kirk McDonald, Director of CD 5
Shawn Siders, CD Specialist
DISCUSSION AND DIRECTION REGARDING REDEVELOPMENT PLANS FOR 5207 PENNSYLVANIA
AVENUE NORTH (IMPROVEMENT PROJECT No. 775)
REOUESTED ACTION
Staff requests Council discussion and direction regarding the attached redevelopment specifications for the
city owned property at 5207 Pennsylvania Avenue North and the EDA Scattered Site Redevelopment
Program.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the city. The City Council has been addressing the residential portion of this goal through the city's many
housing activities, including acquiring properties from willing sellers in designated redevelopment areas.
BACKGROUND
On August 23, 2004, the New Hope EDA approved a purchase agreement for the acquisition of the property
located at 5207 Pennsylvania Avenue North for $80,000. The property was transferred to the New Hope EDA
on November 4, 2004.
On February 14, 2005, the City Council awarded the demolition contract to the Hempel Corporation.
Demolition of the site is nearly complete and the site will be restored once the foundation is removed from
the property.
City staff proposes the creation of a scattered site housing program that is funded by the EDA. This program
is modeled after the city of Crystal's scattered site housing program in which EDA funds are used to.acquire
and demolish blighted properties. Once the site has been demolished, the property is sold to a private
developer that will construct a single family, owner occupied market rate home that most closely matches the
selected redevelopment criteria set forth by the EDA. CDBG funds are not being proposed to fund this
program.
MOTION BY SECOND BY
TO: ~~
I: \ RFA \ PLANNING \ Housin~ \ 5207 Perm \ Redev Specs & Scattered Site Discussion.doc
Request for Action March 28, 2005 Page 2
The proposed scattered site housing policy which is enclosed for review will be considered by the EDA at its
meeting of April 11, 2005 for formal approval. The policy outlines the types of properties that could be
considered for acquisition and demolition by the EDA. City staff recommends the EDA consider the
acquisition of properties that will eliminate the blighting influence of substandard housing while improving
residential neighborhoods. Once a property is acquired, staff will draft redevelopment specifications that are
provided to licensed residential building contractors.
Staff does not recommend that these properties be sold to developers that will "land bank" any EDA owned
property. The enclosed specifications require that the developer complete the redevelopment efforts within
five months from the date the purchase agreement is approved by the EDA. City staff will work with the City
Attorney to provide relief from this requirement if there are reasonable circumstances that delay the
construction (e.g. weather).
City staff has developed an objective and subjective ranking system that will allow city staff to assign points
to each proposal and assist in making its recommendation to the EDA. The objective ranking criteria are
based on measurable items such as finished square feet above grade, number and size of bedrooms, number
of finished bathrooms, etc. The subjective rankings are bonus points that can be received for exterior
appearance, buyer upgrades such as fireplaces, hardwood floors, whirlpool bathtub, etc.
5207 Pennsylvania Avenue North Specifications
The program will establish a minimum target value for land when it' is purchased from the EDA as well as a
minimum target value for the land and building after the site is redeveloped. In that regard, city staff
recommends a minimum purchase price of $75,000 for the Pennsylvania Avenue property. Further, staff
recommends that the minimum initial value of the land and building after redevelopment will be $300,000. In
order to determine the property value after redevelopment, city staff will work with the Hennepin County
Assessors Office to determine the value based on the prOposed plans.
Landscaping
The specifications require the site to be landscaped to be aesthetically pleasing in all seasons. There is a large
spruce tree to the front of the property that is worthy of being saved. The rest of the trees on site are diseased
and should not be saved. Because the spruce tree is located -within the building envelope of the property, it
may not be possible to save that tree; however, any developer will be required to plant a replacement tree that
will be equal in size once fully matured if the tree must be removed.
Utilities and Drainage
Public utilities are available to this site and all utihty lines must be buried. Drainage from the.property will
have to be accommodated on site and cannot be directed onto adjoining properties. All stormwater will have
to be diverted to the storm drain system in Pennsylvania Avenue North.
Building Standards
The house must have at least three bedrooms and two bathrooms. The developer is required to "rough in" a
~A bath in the basement if it does not elect to finish the basement. The basement will also have an egress
window to allow for the expansion of living space.
Request for Action
March 28, 2005 Page 3
City staff encourages the use of low maintenance steel, vinyl or other low maintenance siding materials. The
use of brick is encouraged and will receive bonus points if proposed. Fiber cement or wood siding can be
used; however, they must be properly treated.
The house will be required to be compatible with the surrounding neighborhood. The existing garage will
need new siding and a new roof to match the proposed home. Because there is a large garage on site, city
staff recommended that it not be demolished because it is an amenity on the site.
Builders will receive bonus points for emphasizing the front door as the focal point. Bonus points will also be
awarded for constructing a front Porch and rear patio. The builder is required to offer a balanced distribution
of wall and window areas from all views.
City staff developed the attached specifications to set forth general redevelopment guidelines to ensure the
EDA's objective of providing additional move up housing in the city of New Hope is met. However, city staff
does not recommend making the specifications too detailed to potentially curtail developer creativity. The
enclosed specifications offer a balance of specificity while allowing for the consideration of creative designs.
RECOMMENDATION
Staff requests City Council discussion and direction regarding the proposed specifications regarding
Pennsylvania Avenue North as well as the EDA Scattered Site Redev. elopment Program. Once the
specifications for the property located at 5207 Pennsylvania Avenue North are finalized, they will be
forwarded to a list of developers that have requested them. City staff will also publish a notification in the
newspaper and place the information on the City's website.
This program is modeled after the city of Crystal's scattered site housing program and they have successfully
redeveloped many properties without using federal CDBG dollars.
ATTACHMENTS
o Specifications for Construction of a New Single Family House at 5207 Pennsylvania Avenue North
o Scattered Site Housing Program Proposal Scoring Sheet
o Economic Development Authority of the City of New Hope Scattered Site Redevelopment Program
Specifications for Construction of a New Single Family House at
5207 Pennsylvania Avenue North
Property Information
The property located at 5207 Pennsylvania Avenue North was acquired by the New Hope
Economic Development Authority in November 2004. The house and foundation were
demolished in 2005 and the site was restored. The city did not demolish the existing detached
garage on the property. The garage is 30'x30' and will need new siding and a roof to match the
proposed home.
The legal description of the property is as follows: Lot 8, Block 4, Sunset Heights Addition,
Hennepin County, Minnesota.
Deadline for Completion
Construction of the dwelling on the property must be completed by five (5) months from the
date the purchase agreement is approved by the New Hope Economic Development Authority.
Target Price for Lot
The minimum target price for the lot with garage is $75,000.
(Note: The target price is a minimum, it is not the maximum price; it is a reasonable estimate as
to the market value of the lot with a large garage on the site. Builders should offer whatever
they feel is reasonable given the attributes of the property and the proposed new house. The
EDA reserves the right to reject any or all proposals.
Target Value for Property after House Completion
The initial target value minimum value (land and building combined) is $300,000. To determine
the value of a proposal the EDA will use the estimated market value for property tax purposes
(which will be est/mated by the Hennepin County Assessor based on the plans submitted by the
builder).
(Note: The target value is EDA staff's goal for the combined value of the land and new house,
as estimated by the County Assessor using the same methods for assigning property taxes. It is
not a minimum or maximum value; it is a reasonable estimate of the market value of the
property once the new house is completed. Builders should submit a house plan that they feel
is reasonable given the attributes of the property and the price they are offering for the lot. The
EDA may choose to reject any proposal with an assessor's estimated value that is below the
target value.)
Development Criteria
The new home shall be a single-family, owner occupied house. Siding materials, exterior facade
treatments, roof, window, siding and building line variability, finished landscape, interior space
function and use are all important considerations that EDA staff will evaluate. The
development of the site shall meet the development objectives listed below.
Site Standards
The entire site shall be landscaped to be aesthetically pleasing in all seasons.
and plant materials shall be used to define the site and blend neatly with the
surrounding neighborhood.
Land forms
Builder should locate the house to preserve the trees identified for preservation On the
site sketch, or replace them on a One-for-one basis by planting a tree that will have a
similar size to the tree being removed. In such cases, size and location of the
replacement tree must be approved by the City Forester prior to planting.
Trees not identified for preservation on the site sketch may be removed at the discretion
of the builder at the builder's expense. No compensating tree planting is required for
such trees.
Utilities
Utility meters shall be screened from street view; locations must be specified on the
plans submitted with the building permit .application.-
All utility service lines shall be underground,
Any expense for connection of the house to utilities shall be the responsibility of the
builder, including any necessary landscaping or sidewalk, curb or pavement
removal/repair/replacement.
Municipal water will be available in the front yard along Pennsylvania Avenue North.
Municipal sanitary sewer service will be available in the front yard along Pennsylvania
Avenue North. The builder will be responsible for any SAC charges levied by the
Metropolitan Council Environmental Services. Upon exposure of the sewer stub,
Builder or its agents shah call the city's Utilities crew at 763-592-6762 and the proposed
connection shah be inspected before doing any further work. If the connection is in poor
condition, the city may require the builder to replace the proposed connection.
Questions regarding city utilities should be directed to the Utilities Maintenance
Supervisor at 763-592-6762. Questions regarding private utilities should be directed to
the respective utility company.
Portions of the existing driveway have been removed to seal the well on the site. The
builder may alter the existing driveway provided it is in conformance with the
applicable City Code.
Drainage from the house, garage, driveway and any other structures shall be
accommodated on the site so that water is not directed onto adjoining properties. The
existing grade of the site is higher than the adjoining property to the north. Builder shall
position the house and grade the site to carry stormwater to the existing storm drain in
Pennsylvania Avenue North. If determined by the Building Official to be necessary,
builder will install rain gutters to direct roof runoff to minimize impacts on adjoin/ng
properties.
Builder will follow Best Management Practices to minimize erosion and runoff onto
adjacent properties and public ways. At a minimum, the builder shall install silt fencing
to prevent runoff silt from flowing onto the street or adjacent properties.
Builder will be given additional points for driveway reconstruction.
The construction site, neighboring property and adjoining public streets shall be kept
free of construction debris at all times. The builder may have a construction dumpster
on the property for debris as long as it prevents debris from being scattered or blown
around.
All air-conditioning cooling structures or condensers that generate noise are encouraged
to be located within the rear yard. Cooling systems are permitted in the side yard with
approved screening.
No construction workers, cOnstruction equipment or construction material shall enter
neighboring properties without said property owner's prior consent.
Building Standards
Any structures shall comply with MN State Building Code.
The house shall have at least three bedrooms and two bathrooms.
The house shall have a full basement, unless the selected design results in a split
level/garden level type of basement. At a minimum, basements shall have at least one
egress window and a rough-in for a future ~ bath. Additional basement windows, will
receive bonus points. Slab houses and crawlspace houses will not be considered by the
EDA.
Exterior materials (siding, soffit, doors and windows) shall be low maintenance. Vinyl
steel or other low maintenance siding materials are encouraged and can be made more
desirable through the use of shakes, fish scales or other styles to break up the pattern.
The use of brick is encouraged. Fiber cement siding or wood siding with natural
resistance to decay are encouraged but they must be properly stained or painted.
Hardboard panels'or hardboard lap siding are not acceptable.
Height and mass of the new house should be as compatible with the scale of the
surrounding neighborhood as possible, given the other objectives of this program. The
EDA recognizes the goal to blend in with the neighborhood often conflicts with the goal
for larger, higher value homes, with more modem features. The builder is encouraged
to use designs that attempt to balance both of these goals as much as possible.
The site has an existing detached 30' by 30' garage. It will be necessary to replace the
siding and roof to match the exterior of the proposed home.
The design should emphasize the front door as the focal point for the front of the house.
Large and usable front porches will earn bonus points.
Plans should present a balanced and pleasing distribution of wall and window areas
from all views. Home designs in which comer rooms have windows on both sides will
receive bonus points.
Homes that have a center island kitchen, a deluxe master bath with whirlpool tub,
fireplace(s), a main floor office or study, a main floor or upstairs laundry, upgraded
flooring such as ceramic or wood, or other upscale features will receive bonus points.
Designs that allow for flexibility in living arrangements such as having at least one
bedroom and at least a 3,q bath on the main floor will also receive bonus points. Outdoor
living spaces such as decks or screen porches will also receive bonus points.
Builder Selection Criteria
Builders must meet the following requirements:
Provide preliminary plans of the proposed house. Preliminary plans shall include a site
sketch, floor plan and elevations of all four sides of the proposed house. The site sketch
showing' the building footprint shah be drawn to scale. The floor plans and building
elevations shall be drawn to scale on 81/2" x 11" paper, so that we may easily verify
dimensions and make copies for the EDA to review.
Be licensed as a Residential Building Contractor by the State of Minnesota. Proposals
submitted by parties which are not licensed as a Residential Building Contractor shah
not be considered by the EDA.
Have experience in house construction in Minnesota. Builders shall provide the
addresses of three houses they have built in Minnesota inthe last three years. Proposals
submitted by parties who do not meet this requirement shall not be considered by the
EDA.
Provide proof of Builder's risk, comprehensive general liability, and worker's
compensation insurance coverage, if requested by EDA staff.
Provide references from at least one of each of the following: 1. previous customers, 2.
suppliers 3. municipal building departments
Agree to complete construction of the house as proposed within the time frame specified
in Section B (Deadline of Construction) above. The purchase and redevelopment
agreement will include a provision which rem the ownership of the property to the
EDA if the builder does not perform as specified.
Builder Selection Procedures
Builder proposals are due at New Hope City Hall no later than 3:00 p.m. on Wednesday,
May 11, 2005. Proposals must be submitted in person or by mail. The city of New Hope
will not accept facshnaile transmission of any part of the proposal. The mailing and
drop-off address is:
Kirk McDonald
~Director of Community Development
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
EDA staff will review the submitted proposals. Incomplete proposals will not be
considered. Proposals may be rejected by staff if they do not meet the Target Price,
Target Value, Minimum Features, Development Criteria or Builder Selection Criteria.
Staff will make a report to the EDA regarding the proposals.
At its meeting of Monday, May 23, 2005 at 7:00 p.m. the EDA will hold a public hearing
and consider the staff report and the qualifying proposals. The EDA has the ultimate
discretion to accept or reject any propoSal. The EDA may accept a proposal subject to
conditions or modifications.
Once the EDA selects a particular proposal, EDA staff will draft a purchase and
redevelopment agreement for sale of the lot to that builder. The builder shall make a
formal offer by signing the agreement and returning it to EDA staff with $1,000 earnest
money no later than 10 business days after receiving the agreement. In the event the
builder fails to perform within that time period, the EDA may rescind its approval of the
selected proposal and pursue other options, including but not limited to accepting
another proposal.
Closing on the sale of the property is expected to occur within 30 days of the agreement
being signed and returned to EDA staff. At closing, the builder shall make full payment
for the remainder of the lot price (the EDA will not provide interim financing).
To expedite the process, the builder may initiate the building permit application process
before the closing date. However, the permit will not be issued until the builder has
closed on the purchase of the lot.
Questions regarding building permit forms, fees, inspections, etc. should be directed to
the New Hope Inspections Department at 763-531-5121. All building permit materials
must be approved by the Building Official prior to commencing construction. All
permit fees are required to be paid prior to building permit issuance.
Sheet1
Scattered Site Housing Program - PropoSal Scoring
5207 Pennsylvania Avenue North
Objective Ranking (ranked against other proposal)
Max Points Description of Criteria
200 Lot Price Offered by Developer
120 Est. Market Value (Henn. Co. Assessor)
60 Floor Area Above Grade-Finished
60 Floor Area Below Grade-Finished
30 Floor Area Below Grade-Unfinished
40 Size of Master Bedroom sq. ft.-Finished
20 Size of Bedroom No. 2 sq. ft.-Finished
20 Size of Bedroom No. 3 sq. ft.-Finished
20 Size of Bedroom No. 4 sq. ft.-Finished
20 Size of Bedroom No. 5 sq. ft.-Finished
40 Number of Bathrooms-Finished
10 Number of Bathrooms-Unfinished
20 Front Porch Size sq. ft.
20 Driveway Reconstruction
20 Rear Deck/Porch/Patio sq. ft.
Subjective Ranking'(EDA staff recommendation)
Max Points Description of Criteria
40 Appeal of Front Yard Elevation
20 Appeal of Rear Yard Elevation
20 Appeal of Side Yard Elevation
40 Fit for the Neighborhood
40 Fit for the Site
40 Potential for Maintaining Value/Lifestyle
· Adaptability/Accessibility
30 Exterior Siding Treatment
30 Interior Upgrades (fireplace, whirlpool tub,
upgraded appliances, ceramic tile,
hardwood floors, etc...)
Page 1
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF NEW HOPE
SCATTERED SITE REDEVELOPMENT PROGRAM
Program Objectives
o Replace small, deteriorated lower value housing on scattered sites throughout New
Hope with new, larger, higher value housing designed for families.
c> Eliminate the blighting influence of substandard housing to improve residential
neighborhoods.
o Improve the housing choices within the City.
These objectives will be achieved through the acquisition of property and the redevelopment of
new single family homes.
Acquisition of Property
Seller Solicitation Procedures
o EDA staff will solicit sellers by direct mail, advertisement or other methods such as
the City Report and Cable 12 news programs. The number of properties purchased
will be determined by the availability of resources and properties.
o Sale to the EDA must be on a voluntary basis. Interested potential sellers are
required to respond to the EDA solicitation in writing, with an offer indicating:
o An interest in selling their property to the EDA;
o A willingness to waive relocation benefits;
o A statement that the property is either owner occupied or is vacant and is not
being rented to any party; and
o Consent to the release of relevant information to potential developers and
end buyers.
Owners who have expressed an interest in selling must be contacted to inform them
of the estimated project time line and solicit the required written response.
o
Property Selection Criteria
EDA staff will prepare property fact sheets for properties which owners have expressed
an interest in selling and make a curb side inspection. Properties will be evaluated
based on the following criteria. To be eligible for acquisition, properties must meet each
of the following criteria:
o
The property is one or more of the following:
o Substandard as to condition, size or usage;
o Obsolete and of a faulty design for block and area in which it is located;
o Has caused a blighting impact on the existing neighborhood;
o Detrimental to the health, safety or welfare of adjoining properties.
The site can be developed as a single family home within City Code requirements,
including zoning and conformance with the Comprehensive Plan.
O
The property must be owner-occupied or vacant before the owner should consider
offering it to the EDA. Tenant occupied properties will not be considered for
purchase. In the event that the property was tenant occupied within one year prior
to purchase by the EDA, the seller will be required to furnish documentation of the
reasons for the property becoming vacant such as a copy of the lease, eviction
notices, etc.
The relationship of the property to other public or private activities does not cause a
negative impact on development. Examples of other activities to be considered
include:
[] commercial, industrial or other development/redevelopment areas;
[] street, highway and public utility improvement projects;
storm water flood prevention improvements projects; and
schools, parks or other community facilities.
Property Evaluation Procedures
Based on the above information, EDA staff will identify and recommend purchase of the
best candidates for acquisition. The following are among the factors that will be
considered in that evaluation:
[] properties must be available to meet the EDA development time
frame;
[] properties with the lowest values, smallest size or poorest conditions
should be considered first;
[] properties purchased should be equally distributed by location and
value through the City when possible; and
when possible, properties should be purchased that minimize costs
and maximize the potential return on investment, such as properties
which can be subdivided into two lots for new houses.
Given the above considerations, each site will be evaluated on a case by case basis.
EDA staff will conduct an investigation as to the existence of any hazardous materials
on the property. This includes:
[] a visual inspection;
a professional asbestos hazards survey; and
a statement from the seller regarding any knowledge of the properties
use for production, storage, deposit, or disposal of any toxic or
hazardous wastes or substances or asbestos products whatsoever,
during the time seller owned the property and prior to the date of
seller purchased property. Properties with extraordinary
environmental problems or hazards may be considered if the
purchase price is reduced sufficiently to cover increased site clearance
and preparation costs.
If a variance is required to redevelop the property, the EDA may, at its sole
discretion, choose not to acquire the property. This determination will be made
based on the project time hnes, available resources, and availability of more
desirable properties which do not require a variance.
Establishing Fair Market Value
EDA staff will order a professional appraisal to determine the fair market value of the
property. The independent fee appraiser will be carefully instructed to document in
specific terms the condition of the property, obsolescence of the floor plan and related
issues. The acceptance of conditions in the market place should be discussed in the
report and the appraiser's value judgment should reflect these conditions.
In the event that EDA staff believes that there is justification to deviate from the fair
market value established by an appraisal, reasonable adjustments may be made in the
EDA's offer to the potential seller provided the potential seller is made
aware of the original estimate of fair market value prior to the adjustments. A fair
market value appraisal represents the appraiser's opinion of value on the open market in
a transaction where the seller would typically have to pay a significant (5%-7%)
commission to a real estate broker. In a sale to the EDA, the seller typically does not
have to pay such costs. For this reason, a reduction of the purchase price to 95% of fair
market value could be justified and may be pursued by EDA staff through direct
negotiation with the potential seller
Acquisition Procedures
When a purchase price has been determined, the seller will be informed of:
o The purchase price;
o How the purchase price was determined;
o That if negotiations fail, and the offer is not accepted, the EDA will not acquire
the property through other means; and
o The date and time of the meeting at which the EDA will decide to make a formal
offer to purchase the property.
If the EDA authorizes the purchase, it will execute a Purchase Agreement making the
formal offer to purchase the property. Staff will then forward the Purchase Agreement
and earnest money payment to the seller for them to consider the offer and execute the
agreement. If the seller fails to sign the agreement, the purchase will not proceed and
the earnest money shall be returned to the EDA.
A closing will be scheduled with'the seller and EDA staff. Typically, the City Attorney's
office will act as the closing agent.
Seller will be requested to assemble or supply all required documentation prior to
closing.
Seller will be asked to provide the Abstract of Title or Registered Property Abstract (as
applicable) to the EDA, to facilitate the rendering of a Title Opinion. The cost of
updating the Abstract or RPA will be the paid by the EDA. The EDA will provide a
written receipt when receiving and returning an Abstract or RPA. EDA Staff will also
order an owner's title insurance policy, and will not close prior to receipt of the title
insurance company's Commitment to Insure.
Seller must be prepared to vacate the property on the day of closing unless alternate
arrangements are made with EDA staff, including rent payments and assumption of
utility expenses for the duration of the late stay.
- EDA
RE UP_ T FOR A TION
Originating Department Approved for Agenda Agenda Section
Community Development ~ 3-28-05 EDA
Item No.
Kirk McDonald, Director 6
By: Shawn Siders, CD Speciahst By: ,
DISCUSSION AND DIRECTION REGARDING PROPOSED PURCHASE OF 4415 NEVADA AVENUE N.
REQUESTED ACTION
Staff requests EDA discussi°n and direction regarding the proposed purchase of the property located at 4415
Nevada Avenue North.
POLICY/PAST PRACTICE
City goal ~2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the city. The City Council has been addressing the residential portioh of this goal through the city's many
housing activities, including acquiring properties from willing sellers in designated redevelopment areas.
BACKGROUND
At its meeting of February 28, 2005, city staff presented redevelopment plans for the properties located at 4301
and 4317 Nevada Avenue North. Northwest Community Revitalization Corporation (NCRC) developed
plans that proposed the redevelopment of those two dilapidated properties into six owner occupied
twinhome units. During that discussion, NCRC advised the EDA that it could not acquire the property at
4415 Nevada Avenue North due to funding constraints imposed by the Department of Housing and Urban
Development. NCRC had obtained an appraisal of the property which estimated the value at $105,000.
After that meeting, the city was contacted by a representative of the adjoining property owner to determine
what interest the city might have in acquiring the property located at 4415 Nevada Avenue North. City staff
requested that the adjoining property owner submit a letter of interest to sell that property to the city as well
as a recently completed appraisal.
The property owner forwarded that information to city staff and indicated that they would sell the property
located at 4415 Nevada Avenue North to the city in the $160,000 price range. The owner did have an
appraisal of the property completed which estimated the value of the property at $124,000. The owner cited
the inability to purchase another home for $124,000 as the reason why it is necessary for the increased asking
price.
MOTION BY SECOND BY
I: \ RFA \ PLANNING \ Housin~ \ 4415 \ Q-Discussion and Direction.doc t
Request for Action March 28, 2005 Page 2
City staff has evaluated the proposed purchase and recommends that the acquisition and redevelopment of
this property could be a candidate for acquisition and demolition under the EDA's proposed scattered site
housing program. The proposed EDA scattered site housing program recommends that the EDA acquire and
demolish property using its own funds. Once the respective sites have been restored, the property will be
advertised and awarded to a developer that proposes a redevelopment plan that most closely resembles the
redevelopment criteria, set forth by the EDA.
If this property were acquired by the EDA, city staff would recommend that the City Council consider
approving minor variances to the property to allow the subdivision of the property into two individual lots.
Because the lot is approximately 16,868 square feet, it could potentially be subdivided into two parcels and
sold to one or two developers for the construction of two owner occupied single family units. This
subdivision would provide a natural transition from the higher density apartment and twLqhome units to the
single family residential neighborhood that is north of this property.
RECOMMENDATION
Staff requests discussion and direction regarding the potential acquisition of the property located at 4415
Nevada Avenue North. If the EDA would like to give further consideration to the purchase of this property,
staff recommends that the city not obtain another appraisal of the property as it has two previous appraisals
that were completed within the last 5 months. The owner has indicated that it is not Lq a position to accept
significantly less than an offer in the $160,000 price range. If the EDA directs staff to enter into negotiations
with the property owner, city staff would seek guidance as to an acceptable counter offer. If a reasonable
price can be negotiated by staff, it will make the necessary arrangements to schedule a public hearing and
request the City Attorney to draft a purchase agreement that will be considered by the EDA.
FUNDING
The EDA could acquire the property, demolish the structures on the site and subdivide the lot into two
parcels. The proceeds from the sale of the two lots would assist in covering the costs associated with this
redevelopment.
ATTACHMENTS
o Letter from Agnes Olson - March 10, 2005
83/16/2885 21:27 7636824282 GUARDIAN ANGELS ELIH PAGE 82
March l0th 2'005
.Mr. Kirk McDonald
Director of Community Development:
I am writing th/s letter to express my interest in selling my property at 4415
Nevada Ave. to the City Of New Hope. I had pm'chased this property as an
investment some 30 years ago. Since the time of the purchase I have been
through many medical problems making it hard for me to do the things I had
wished for this house. I am willing to work with the City Of New Hope on a
pr/ce that would allow me to relocate to.another residence. I have been
working with a realtor in Buffalo, Minnesota who has shown me many
houses, I do find it necessarY to find a house that can aeeomadate my needs
as I grow older. When thinking about a price on my current house I am
aware of the appraisal that was done. I am realizing that it is very difficult to
find a property for that price. If we are able to come to an agreement on a
price in the $160's I would feel comfortable in selling my current property;
being reassured I would be able to fred a place t6 relocate. My family is
willing to help me w/th moving into a new house. A date of close would be
flexible on my part, as I would like to be moved right away.
Agnes Olson
~ - EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development (?/. 3-28-05 EDA
Item No.
By: Kirk McDonald, Director 7
MOTION AUTHORIZING STAFF TO REQUEST ENGINEERING ESTIMATE FROM XCEL ENERGY FOR
B~L OF OVERHEAD UTILITIES FROM NORTH SIDE OF BASS LAKE ROAD TO 58TH AVENUE
NORTH IN CONJUNCTION WITH WINNETKA TOWNHOMES REDEVELOPMENT PROJECT
(IMPROVEMENT PROJECT NO. 770)
REQUESTED ACTION
Staff is requesting that the EDA approve a motion authorizing staff .to request a final engineering estimate for
the burial of overhead utility lines on the east side of Winnetka Avenue from the north side of Bass Lake Road
to 58th Avenue, based on the attached engineering estimate received from Xcel Energy.
POLICY PAST PRACTICE
The EDA routinely takes action on redevelopment projects that meet the goals of both the Comprehensive
Plan and the city plan.
BACKGROUND
At the June 21, 2004, City Council work session staff discussed a number of items regarding the
redevelopment projects currently underway in the Livable Communities area near the intersection of Bass
Lake Road and Winnetka Avenue. Per the direction from the Council, staff coordinated with Xcel Energy on
the burial of overhead utilities along the east side of Winnetka between 53rd Avenue and the south side of
Bass Lake Road, as part of the Winnetka Green redevelopment project. This project was completed in the fall
of 2004. The Council also directed that staff coordinate on the burial of overhead utilities north of Bass Lake
Road in conjunction with the Winnetka Townhomes redevelopment project, as the long-term goal of the city
was to bury overhead utilities whenever possible with redevelopment projects for aesthetic and safety
purposes.
Staff has requested a scoping and preliminary cost estimate from Xcel Energy for this project and Xcel
provided preliminary cost estimates for two options as follows:
MOTION BY SECOND BY
I:RFA\planning~livable communities~Q-burial overhead utilities 3-28-05
Request for Action Page 2 3-28-05
· Option 1: The cost to underground existing overhead facilities from the north side of Bass Lake Road to
approximately 5620 Winnetka Avenue, $60,000.
· Option 2: The cost to underground existing overhead facilities from the north side of Bass Lake Road to
58th Avenue, $105,000.
The city needs to select one option so that a more detailed engineering estimate can be completed and staff is
recommending that the EDA select Option 2 and approve a motion authorizing staff to request a detailed
estimate on that option. It is anticipated that the detailed estimate will be very similar to the preliminary cost
estimate. Staff would bring the final cost estimate back to the EDA for review and approval to proceed with
the project. Staff would like to get the project accomplished during the early 2005 construction season. It is
anticipated that sidewalk improvements will also be completed in this area in 2005 and that storm sewer and
ponding improvements will be completed in 2006 (please refer to city engineer memo).
Staff requests that the EDA discuss the options and approve a motion authorizing a detailed engineering
estimate on the preferred option.
FUNDING
The project is located in an area where a TIF District was specifically created for the Winnetka Town_homes
redevelopment project. Per the director of finance, it was intended that costs for some infrastructure
improvements, such as burial of overhead utilities, ponding improvements and sidewalk improvements,
would be paid for out of the TIF revenue stream created by the district.
ATTACHMENTS
· City Engineer Memo
· Xcel Energy Correspondence and Maps
Memo
Project Name: Winnetka Townhomes
To: Kirk McDonald
From: Vince Vander Top
Re: Burial of Overhead Utilities
Client: New Hope
File No: 34-05-000
Date: March 22, 2005
]Bonestroo
Rosene
Anderlik &
A.~sociates
Engineers & Architects
Xcel Energy has suggested two options for the burial of overhead utilities along the east side of Winnetka
Avenue, north of Bass Lake Road. The two options vary by the northern extent of which the lines are buried.
Both option begin the burial of lines at Bass Lake Road and extend north to:
· Option 1: approximately 5620 Winnetka Ave (north side of Winnetka Townhomes)
· Option 2:58th Ave N (north side of Winncrest Apartments)
Rough cost estimates, $60,000 for Option 1 and $105,000 for Option 2, have been provided by Xcel. Xcel also
stated that a more detailed Engineering Estimate would be required 15ased on the city's final design. This relates
as to which of the two options is selected for further exploration.
The city has planned the construction of a storm sewer improvement in this area for 2006. (Refer to the
attached figure.)
Option 1 has been reviewed and appears feasible to complete in regards to existing utilities and the current
sidewalk project design. Selection of Option 2 would require further investigation and coordination between the
burial of the lines and the proposed storm sewer project along that section of the Winnetka Avenue corridor.
Option 2 appears to be feasible. However, if Council chooses Option 2, we should meet with Xcel to review the
scope of the storm sewer project to coordinate the designs.
Bonestroo, Rosene, Anderlik and Associates, Inc.
www. bonestroo.com
st. Paul office: Milwaukee Office: Rochester Office: Willmar Office: st. Cloud Office: Lberlyville Office:
2335 West Highway 36 12075 N. Corporate Parkway, ste 200 112 7~h street NE 205 5th Street SW 3721 23~ Street S 1860 West Winchester Rd, Ste 106
St. Paul, MN 55113 Mequon, WI 53092 Rochester, MN 55906 Willmar, MN 56201 St. Cloud, MN 56301 Grayslake, IL 60030
Phone: 651-636-4600 Phone: 262-643-9032 Phone: 507-282-2100 Phone: 320-214-9557 Phone: 320-251-4553 Phone: 847-548-6774
Fax: 651-636-1311 Fax: 262-241-4901 Fax: 507-282-3100 Fax: 320-214-9458 Fax: 320-251-6252 Fax: 847-548-6979
~ /NEW TRAIl CONNECTION
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FIGURE 1
D\34\3404161\C~d\Dwg\3404161FOl,dw@
C0MM: 34-04-161
Wincrest Pond Improvements
New Hope, MN
5700 Winnetka Avenue
3404161F01 DATE: JUNE, 2004
JBonestroo
Rosene
Anderlik &'
~ Associates
Engineers & Architects
6/17/2004 2~51~39 PM CDT
XcelEne
February 28, 2005
ICirk McDonald,
Director of Community Development
City of New Hope
4401 Xylon Avenue North
New Hope MN 55428-4898
Re: Estimate for Specix[ Facilities Project - Bass Lake Road and Winnetka Avenue
The City of New Hope has requested information from Northern States Power d/b/a Xcel
Energy ("Xcel Energy") regarding the burial of overhead electric facilities north of Bass Lake
Road on Winnetka Avenue.
The estimated project costs for the two options are is as follows:
1. The cost to underground existing overhead facilities from the north side of Bass
Lake Rd. to approximately 5620 Winnetka Avenue, $60,000.
2. The cost to underground existing overhead facilities from the north side of Bass
Lake Rd. to 58th, $105,000.
If your City wishes to proceed with the project, a more detailed Engineering Estimate is
required based on the city's final design. The Engineez4ng Estimate will more closely
approximate the final anticipated cost. Construction cannot start until an Engineering
Estimate is completed. Given the work done to date this esthnate can be generated in a
relatively short timeframe. Please contact me in writing to inform us how you wish to
proceed.
If you have any questions don't hesitate to contact me at 763-493-1631.
Sincerely,
Darrin Lahr
Commun/ty Relations Manager
Cc: Dan Donahue, City Mana~elrTY
OF
NEw
HOPE
4401 ×ylon -&venue North · New Hope, Minnesota 55428-4898 · www. ci.new-hope.mn.us
City Hall: 765-S31-S100 · Police (non-emergency): 763-531-5170 * Public Works: 763-592-6777 · TDD: 763-531-5109
City Hall F~x: 763-531-5136 · Police Fax: 763-S31-5174 · Public YVorks Fax: 763-592-6776
Vince Vander Top, City Engineer
Guy Johnson, Director of Public Works
Page 2 of 2
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