082205 EDA
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Official File C6py
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CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
August 22,2005
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Martin Opem Sr.
Commissioner Mary Gwin-Lenth
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of June 27, 2005
4. Resolution calling for a public hearing by the Economic Development Authority of the
city of New Hope on behalf of Emergency Foodshelf Network
5. Resolution approving waiver of service availability charges (SAC) for 4301-17
Nevada Avenue North twinhome redevelopment (improvement project no. 778)
6. Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 740
Item 4
EDA Meeting
Page I
CITY OF NEW HOPE
4401 XYLON A VENUE NORTH
NEW HOPE, MINNESOTA 55428
June 27, 2005
City Hall
President Opem called the meeting of the Economic Development Authority
to order at 9:46 p.m.
Present:
Martin Opem Sr., President
Mary Gwin-Lenth, Commissioner
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
Staff Present:
Dan Donahue, City Manager
Kim Green, Community Development Assistant
Guy Johnson, Director of Public Works
Clarissa Klug, Assistant City Attorney
Valerie Leone, City Clerk
Kirk McDonald, Director of Community Development
Shawn Siders, Community Development Specialist
Steve Sondrall, City Attorney
Vince VanderTop, Assistant City Engineer
Motion was made by Commissioner Sommer, seconded by President Opem,
to approve the Regular Meeting Minutes of June 13, 2005. All present voted
in favor. Motion carried.
President Opem introduced for discussion Item 4, Resolution approving a
purchase agreement to sell the city-owned property at 7500, 7516, 7528 42nd
Avenue North to Frey Development and Manley Land Development, LLC
(improvement project no. 740).
Mr. Shawn Siders, community development specialist, reviewed the history of
the property. He stated the purchase price was $510,000, and the
redevelopment will include eight office condominium units and a multi-
tenant retail building with Viva Italia Restaurant proposed as the anchor
tenant.
Mr. Donahue, city manager, commented that it was nearly 20 years ago when
pollution clean-up efforts were initiated at the site.
The city manager and EDA commended the community development staff for
their efforts in making the redevelopment a reality.
June 27,2005
EDA RESOLUTION
05-05
Item 5
ADJOURNMENT
EDA Meeting
Page 2
Commissioner Sommer introduced the following resolution and moved its
adoption: "RESOLUTION APPROVING A PURCHASE AGREEMENT TO
SELL THE CITY-OWNED PROPERTY AT 7500, 7516, 7528 42ND AVENUE
NORTH TO FREY DEVELOPMENT AND MANLEY LAND
DEVELOPMENT, LLC (IMPROVEMENT PROJECT NO. 740)." The motion
for the adoption of the foregoing resolution was seconded by Commissioner
Nolte, and upon vote being taken thereon, the following voted in favor
thereof: Opem, Gwin-Lenth, Hoffe, Nolte, Sommer; and the following voted
against the same: None; Abstained: None; Absent: None; whereupon the
resolution was declared duly passed and adopted. signed by the president
which was attested to by the executive director.
Motion was made by Commissioner Nolte, seconded by Commissioner Hoffe,
to adjourn the meeting. All present voted in favor. Motion carried. The
New Hope EDA adjourned at 9:50 p.m.
Respectfully submitted,
~~
Valerie Leone
City Clerk
June 27, 2005
EDA
REQUEST FOR ACTION
Originating Deparbnent
Approved for Agenda
Agenda Section
Community Development
8-22-05
EDA
Item No.
By: Kirk McDonald, Director of CD
Shawn Siders, CD S ecialist
4
RESOLUTION CALLING FOR A PUBLIC HEARING BY THE ECONOMIC DEVELOPMENT AUlliORITY
OF THE CITY OF NEW HOPE ON BEHALF OF EMERGENCY FOODSHELF NETWORK
REOUESTED ACTION
Staff recommends that the EDA approve the enclosed resolution which schedules a public hearing for the
September 12, 2005 EDA meeting regarding this matter. The resolution and public hearing notice have been
prepared by the applicant's legal counsel and reviewed/approved by Jerry Gilligan, the city's bond counsel
from Dorsey and Whitney.
POLICYIPAST PRACTICE
In the past, the city has agreed to serve as the insurer of tax-exempt bonds on behalf of an entity to facilitate
improvements on a facility located n New Hope.
BACKGROUND
Please refer to the attached correspondence from Emergency Foodshelf Network and correspondence from
the city's bond counsel.
The city of New Hope has been contacted by representatives of Emergency Foodshelf Network to complete a
tax-exempt bond issuance not to exceed $2,000,000 to complete capital improvements to the New Hope
facility so that Emergency Foodshelf Network may continue to meet the needs of their clients.
The Emergency Foodshelf Network facility is located at 8501 North Fifty Fourth Avenue.
The basic structure of the transaction is as follows: a privately placed note ("obligations") is issued by the
Issuer. The Issuer loans the proceeds from the sale of the obligations to a non-profit party ("borrower"). This
loan is made pursuant to a loan agreement which requires the borrower to comply with certain requirements
of state law and the Internal Revenue Code ("Code"). The loan agreement further requires the borrower to
generate sufficient revenues to pay amounts owed by the Issuer on the obligations. Payments
SECOND BY
MOTION BY
TO:
I:\RFA\PLANNING\Plannin \Q-EFNbond.doc
Request for Action
August 22, 2005
Page 2
under the loan agreement are equal to the payments due on the obligations. Because the obligations are a
promise to pay between the private placement lender and the Issuer, and because the loan agreement is
between the Issuer and the borrower, another agreement called a pledge agreement or trust indenture is used
pursuant to which the Issuer pledges its receipts under the loan agreement for payment on the obligations.
(The loan agreement provides that the payments are made by the borrower directly to the lender.) In
addition, the borrower usually executes a mortgage and/or security agreement in favor of the lender. In all
cases, the security interest in these items of collateral runs in favor of the lender.
The Minnesota law specifically provides that obligations issued are not payable from or charged upon any
funds other than the revenue pledges to their payment, nor is the Issuer subject to any liability on them. No
holder of the obligations has the right to require any exercise of the taxing power of the Issuer to pay the
obligations or the interest thereon, or enforce payment of the obligations against any property of the Issuer,
except those projects or portions thereof mortgaged or otherwise encumbered under the provisions and for
the purposes of Minnesota law.
The applicant has submitted the necessary city application form and the appropriate fees. These fees include
a $500 non-refundable fee and a $5,000 deposit to cover any consultant expenses. The city's bond issuance in
the amount of Yo of 1 percent of the principal bond amount fee is applicable in this situation because the city
will be the issuer of the bonds. The fee paid to the city to serve as the issuer will be approximately $8,500.
This request has been reviewed and discussed with the city manager and director of finance and both
recommend approval of the request.
Staff recommends approval of the enclosed resolution scheduling the public hearing for September 12, 2005.
ATTACHMENTS
. Resolution
. Applicant Correspondence
. Bond Counsel Correspondence
. Map
Resolution No.
RESOLUTION CALLING FOR PUBLIC HEARING ON THE
PROPOSED ISSUANCE OF A REVENUE NOTE IN AN
AMOUNT NOT TO EXCEED $2,000,000 AT THE REQUEST
OF EMERGENCY FOODSHELF NETWORK, INC.
WHEREAS, the Economic Development Authority in and for the City of New
Hope (the "Issuer") is a public body corporate and politic organized and existing under
the Constitution and laws of the State of Minnesota, and is authorized and empowered by
Minnesota Statutes, Sections 469.152 to 469.1651, as amended (the "Act") to issue
revenue bonds or notes and loan the proceeds from the sale thereof to one or more parties
to be used to defray all or a portion of the costs of authorized proj ects, as further provided
in the Act; and
WHEREAS, a proposal has been made to the Issuer by Emergency FoodShelf
Network, Inc., a Minnesota nonprofit corporation (referred to herein as the "Borrower"),
and an organization described in Section 501(c)(3) of the Internal Revenue Code, that the
Issuer issue its revenue bond or note for the purpose of financing a project pursuant to the
Act (as hereinafter more specifically described, the "Project"); and
WHEREAS, the Project consists of the acquisition and construction of
improvements to, including the acquisition and installation of equipment, and the
refinancing of outstanding indebtedness previously incurred in the acquisition by the
Borrower of, the Borrower's existing building located within the jurisdictional
boundaries of the Issuer; and
WHEREAS, the funds to provide fmancing for the Project are to be obtained
through the issuance by the Issuer of its Revenue Note (the ''Note''), in a principal
amount not to exceed $2,000,000, which Note is to be repaid solely and only through
payments to be made by the Borrower pursuant to a loan or similar agreement to be
entered into between the Issuer and the Borrower; and
WHEREAS, the Note shall be a limited obligation of the Issuer, and shall not
constitute nor give rise to a pecuniary liability of the Issuer or the City of new Hope or a
charge against the general credit or taxing powers of the Issuer or the City of New Hope,
and the principal of, interest and premium, if any, on the Note shall be payable solely out
of the revenues derived from a loan agreement to be entered into between the Issuer and
the Borrower; and
WHEREAS, pursuant to Section 469.154, Subd. 4, of the Act and Section 147(f)
of the Internal Revenue Code of 1986, as amended, as a condition to the issuance of the
Note, it is necessary to conduct a public hearing on the issuance ofthe Note and on the
Project, and to publish notice of said public hearing in the official newspaper and a
newspaper of general circulation in the municipality not less than 14 nor more than 30
days prior to the date fixed for the hearing.
BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority in and for the City of New Hope, Minnesota as follows:
1. A public hearing shall be conducted by the Board of Commissioners on
the issuance of said Note, such hearing to be held on September 12, 2005, at 7:15 o'clock
p.m. in the principal offices of the Issuer, at which hearing all parties who appear shall be
given an opportunity to express their views with respect to the issuance of the Note.
2. Notice of such public hearing, in substantially the form attached hereto as
Exhibit A, shall be published at least once not less than 14 nor more than 30 days prior to
the date fixed for the hearing, in the official newspaper and a newspaper having general
circulation in the City of New Hope.
3. Officers of the Issuer are hereby authorized to take such further action as
may be necessary to carry out the intent and purpose of this Resolution.
4. Any prior resolutions or orders adopted by the Board of Commissioners,
or parts thereof, in conflict herewith are, to the extent of such conflict, hereby repealed,
and this Resolution shall be in full force and effect immediately upon its adoption.
Adopted: August 22, 2005.
ECONOMITCDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF NEW HOPE
By
Its President
Attest:
By
Executive Director
-2-
EXIllBIT A
NOTICE OF PUBLIC HEARING ON THE PROPOSED ISSUANCE BY THE ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE OF A REVENUE
NOTE IN A PRINCIPAL AMOUNT NOT TO EXCEED $2,000,000, AT THE REQUEST OF
EMERGENCY FOOD SHELF NETWORK, INC.
NOTICE IS HEREBY GWEN that a public hearing shall be conducted by the Board of
Connnissioners ofthe Economic Development Authority in and for the City of New Hope (the
"Issuer"), on a proposal that the Issuer issue its Revenue Note, in a principal amount not to
exceed $2,000,000 (the "Note"), and on a project to be financed thereby, all pursuant to
Minnesota Statutes, Sections 469.152 to 469.1651, as amended (the "Act"), and all at the request
of Emergency FoodShelfNetwork, Inc., a Minnesota nonprofit corporation (the "Borrower").
The hearing will be held at City Hall, located at 4401 Xylon Avenue North, New Hope,
Minnesota, on Monday, September 12,2005, at 7:15 o'clock p.m. The proposed project to be
financed by the Note consists of the acquisition and construction of improvements to, including
the acquisition and installation of equipment, and the refinancing of outstanding indebtedness
previously incurred in the acquisition by the Borrower of, the Borrower's existing building
located in the City of New Hope (all collectively referred to as the "Project"). The address of the
Project to be financed and refinanced by the Note is 8501 Fifty Fourth Avenue North, New
Hope, Minnesota. The Project is to be owned and operated by the Borrower. The proceeds of
the Note will be loaned by the Issuer to the Borrower to provide financing for the Project, and
the Borrower will agree to repay the loan at times and in amounts sufficient to provide for
payment in full of the Note when due. At said time and place the Board ofConnnissioners shall
give all parties who appear an opportunity to express their views with respect to the Project and
the issuance of the Note. Written connnents will be accepted at the principal offices of the Issuer
until the time of hearing. A draft copy of the proposed Application to the Department of
Employment and Economic Development for approval of the Project, together with all
attachments and exhibits thereto, shall be available for public inspection following the
publication ofthis notice at the office of the City Manager in City Hall during normal business
hours, 8:00 o'clock a.m. to 4:30 o'clock p.m. on normal business days.
Dated: August 22, 2005.
BY ORDER OF THE BOARD OF
COMMISSIONERS
Isl Daniel J. Donahue
Executive Director
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August 8, 2005
Kirk McDonald
Director of Community Development
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Dear Mr. McDonald:
Enclosed please find an application for the Emergency FoodshelfNetwork (EFN) to
submit for Revenue Bond Tax Exempt Financing.
I look forward to completing this process as quickly as possible so that we can make the
necessary capital improvements needed to assure that we can continue to meet the
growing need for hunger relief in our community. Your support will help us continue to
provide much needed assistance and guidance to food shelves such as the NEAR Food
Shelflocated in our New Hope.
Please let me know if you need additional information from me concerning this
application by contacting me at 763-450-3862.
Sincerely,
--C~
Tim Barnes
Executive Director
Cc: Mr. Tim Joyce
8501 North Finy Fourth Avellil\: New Hope, rvlN 5542~
Phone: 76J.450.38()(J Fa.\: 7()3.450..1~t)9
http://www.emenrencvfoodshelf.org
The Emergency Foodshelf Network (EFN) is a nonprofit organization that collects,
warehouses and distributes high quality food and essential support services to
Minnesota hunger relief organizations.
Our family of programs include food banking, food rescue, supplemental nutrition for families and
seniors, and customized support services such as infrastructure, eqnipment, and technology
for hunger relief organizations.
Our network of 180 member agencies provide more than 7 million pounds of nonperishable, perishable
and prepared food to over I million hungry individuals annually.
In 2004, 92 cents of every $1.00 raised was spent directly on our programs and only 3% of our revenue
was spent on fundraising. Through donations from the community, we provided over 9 million dollars in
benefits and savings to our members last year.
Below is a list of services we provide through our family of programs:
Food SUDDort Pro!!ram - EFN distributed over 633,000 pounds offood to its member agencies at no
charge in 2004. This saved our network of hunger relief organizations $1,300,000 last year.
Bulk Food Purchasin!! Pro!!ram - For those hunger relief organizations looking to supplement the free food
they receive, EFN purchases quality food items in bulk at the lowest possible prices and make it available at
or below retail prices. Last year, organizations purchased over $1,000,000 of food, which allowed them to
save $406,000.
Fare For All Pro!!ram -Offers food packages to families looking to stretch their food-purchasing power.
Each month, participants pay $17.00 and receive $40.00 worth of quality fruits, vegetables and meats. In
2004, this program distributed 662,000 pounds of food to 116,000 people, saving them nearly $750,000.
All Seasons Food Rescue Pro!!ram - Collects and distributes perishable food (that would otherwise go to
waste). In 2004, this program rescued and distributed over 90,000 pounds of free food to local hunger
relief organizations, saving individuals and families $280,000.
Bi!!h Rise Pro!!ram - Distributes supplemental food to subsidized housing complexes - the majority of
the residents are senior citizens. In 2004, EFN delivered 313,000 pounds of food through this program.
SUDDort Services - In our continuing effort to support hunger relief organizations, EFN provides additional
free and subsidized services such as: systems support for the Toys for Tots program, volunteer services,
grants, equipment repair, and delivery services. These services saved agencies nearly $5,000,000 in 2004.
To learn more about the EFN organization, including financial/governance information, and
upcoming community events, please call us at 763.450.3860 or visit us on the web at:
www.emergencyfoodshelf.org
----~~
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Mission Statement
To provide high quality food and essential support services to hunger
relief programs in the community. We do this by partnering to:
>- Maximize the sharing of food, resources and systems support
>- Promote quality standards
>- Educate and advocate for the eradication of hunger
Adopted May 2004
www .emergencvfoodshelf.org
Emergency FoodsheIf Network
2005-2006 Board of Directors
Barb Kjos 9/2007
President
609 Park Valley Drive West
Hopkins, MN 55343
H: 952-935-9047
BarbaraKios0lmsn.com
Julie Honebrink 9/2006
Community Affairs
MN Fox 9
11358 Viking Drive
Eden Prairie, MN 55344
W: 952-946-5685
ihone brink0lmnfox.com
Bruce Shnider
Vice President 9/2006
Dorsey & Whitney,
Suite 1500
50 S.6th Street
Minneapolis, MN 55402
W-612-340-2862
shnider. bruce(@,dorsev.com
Dianne Blaydes 9/2006
Hennepin County Human Services &
Public Health
525 Portland Ave. S.
MCL983
Minneapolis, MN 55415
W-612-348-7550
Dianne.Blavdes0lco.henneoin.mn. us
Jon Habben 1/2006
Secretarvtrreasurer
Gold'n Plump Poultry
P.O. Box 1106
St. Cloud, MN 56302
W-1-320-240-6262
ihabben0l!!oldnolumo .com
Tom Grossman 9/2008
Metro Management, Inc.
7625 Metro Blvd., Suite 300
Edina, MN 55439
W- 952-893-1277
kmetcor0lvahoo.com
Jennifer Pope R.D. H. 2/2007
Dr. Gerst Dentist Office
2701 Nicollet Ave.
Minneapolis, MN 55408
612-874-7674
iennvaoooe0lvahoo.com
Ji-young Choi 9/2008
Catholic Charities
Family Service Center
2001 Van Dyke
Maplewood, MN 55109
W- 651-779-5077
I Jchoi0lccom.or!!
Annette Marie Poeschel 9/2007
ICA Food Shelf
3909 Williston Road
Minnetonka, MN 55345
W-952-938-0729 Mtka. Site
W-952-470-0692 Excelsior Site
ica0lemer!!encvfoodshelf. or!!
, Francisco Segovia 9/2008
Waite House
Pillsbury United Communities
2529 13th Ave. South
Minneapolis, MN 55404
W-612-721-1681
Se!!oviaF0louc-mn.or!!
Barbara Petersen 9/2006
University Bank
200 University Ave.
St. Paul, MN 55419
W-651-265-5600
Barbara(@,univeristvbank.com
I Tim Barnes
EFN Executive Director
W-763-450-3862
Cell- 763-238-1402
tbarnes0lemer!!encvfoodshelf. or!!
1
C 2>> DORSEY
DORSEY & WHITNEY llP
JEROME P. GILUGAN
(612) 340-2963
FAX (612) 340-2643
gilligan.jerome@dorsey.com
August 12, 2005
Mr. Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Proposed Revenue Note for Emergency FoodShelf Network, Inc.
Dear Kirk:
The City has received a request from Emergency FoodShelf Network, Inc. (the
"Corporation") that the Economic Development Authority in and for the City of New Hope (the
"EDA") issue tax-exempt revenue bonds under Minnesota Statutes, Sections 469.152 to
469.165, to finance and refinance improvements, including acquisition and installation of
equipment to its facilities in the City. The Corporation has requested that the EDA Board of
Commissioners at its meeting on August 22, 2005 call for a pUblic hearing to be held on
September 12, 2005 on the issuance of the Note by the EDA. .
The Note is proposed to be issued in the aggregate principal amount of up to
$1,734,000. The debt service on the Note will be payable solely from payments to be made by
the Corporation and will be secured by a first mortgage on its facilities in New Hope. Neither the
City nor the EDA will not have any liability with respect to the Note.
The Corporation is requesting that the EDA, rather than the City, issue the Note in order
that the Note can be designated bank-qualified under Section 265(b) of the Internal Revenue
Code (the "Code"). The Corporation is hoping that the Note can be designated as bank-
qualified since it is anticipated that the purchaser of the Note will be one or more banks. The
EDA has a separate annual $.10,000,000 bank qualification limitation, and under Section 265(b)
of the Code obligations issued by the City do not count against the EDA's bank qualification
limitation. However, the obligations of the EDA, as a subordinate entity of the City, will count
against the City's annual $10,000,000 bank qualification limit. While I understand the City does
not have any plans to issue Cldditional bonds for City purposes this year, I have been contacted
by an investment banker about the possibility of the City issuing refunding bonds sometime this
year to refund the Masonic Home North Ridge Care Center Bonds issued by the City in 1999.
The issuance of such refunding bonds will cause the City to exceed the $10,000,000 bank
qualification limit for 2005. Because of the possibility of that refunding taking place, the City
could not designate the Note as a bank-qualified obligation because, in order to do so, it must
reasonabiy determine that it does not expect to exceed the $10,000,000 limitation in 2005.
DORSEY & WHITNEY llP' WWW.DORSEY.COM'T 612.840.2600' F 612.840.2868
SUITE 1500' 50 SOUTH SIXTH STREET' MINNEAPOLIS, MINNESOTA 55402-1498
USA CANADA EUROPe: ASIA
C 1>> DORSEY
Mr. Kirk McDonald
August 12,2005
Page 2
However, since the EDA has its own separate $10,000,000 bank qualification limitation and the
City bonds do not count against the EDA's bank qualification limitation, the EDA is able to
designate the Note as a bank-qualified obligation.
The Corporation will pay all EDA and City expenses with respect to the Note, and upon
issuance of the Note will pay the City a fee equal to y" of 1 % of the principal amount of the Note
in accordance with the City's requirements for issuance of revenue bonds.
Representatives from the Corporation will attend the August 22". Board of
. Commissioners meeting to respond to any questions concerning this proposal.
If you have any questions, please call me.
cc: Steve Sondrall
Dick Heide
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EDA
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Development
08-22-05
EDA
Item No.
By: Kirk McDonald, Director of CD
Shawn Siders, CD S ecialist
5
RESOLUTION APPROVING WAIVER 0 SERVICE AVAILABILITY CHARGES (SAC) FOR 4301-17
NEVADA A VENUE NORTH TWINHOME REDEVELOPMENT (IMPROVEMENT PROJECT NO. 778)
REOUESTED ACTION
Staff requests that the Council approve a resolution authorizing a waiver of the Service Availability Charges
(SAC) for the 4301-17 Nevada Avenue Twinhome redevelopment project in the amount of $8,700 ($1,450 for 6
units). The units at 4301-17 Nevada Avenue have two SAC credits that staff recommends to be applied
towards the redevelopment. In total, city staff is seeking EDA approval to cover the SAC fees for all six units.
The city has previously received credits from other private redevelopment projects and staff requests to apply
four of those credits to the NCRC project. This request is being made by city staff as the city has applied
available SAC credits in the past to other redevelopment projects in which the city has partnered with NCRC.
POLICYIPAST PRACTICE
City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties
within the city. The council has been addressing the residential portion of this goal through the city's many
housing activities. In previous redevelopment projects in which the city partnered with NCRC, the city has
applied available SAC credits to those projects. The city recently applied SAC credits to the redevelopment of
the handicap accessible projects at 7105 62nd Avenue and 6073-6081 Louisiana Avenue.
BACKGROUND
At its meeting of July 25, 2005, the City Council approved a motion recommending that the EDA approve a
resolution waiving the SAC fees for the Nevada Avenue Twinhome project.
At its meeting of June 27, 2005, the City Council approved the final plat for this redevelopment project. The
plans call for the redevelopment of two existing dilapidated properties into six owner occupied twinhome
units.
In order to facilitate this redevelopment, the city has approved the transfer of 4317 Nevada A venue North for
$1. The property at 4317 Nevada A venue North was acquired and demolished using CDBG funds.
MOTION BY
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SECOND BY
TO:
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I:\RFA \PLANNING\Housin \4317\SAC Waiver EDAdoc
Request for Action
Page 2
August 22, 2005
Because of the extensive redevelopment efforts in the city, the EDA has approximately $24,300 credited to the
EDA Fund reserves in the 2004 budget from SAC charges that were not credited to other redevelopment
projects (e.g. Ryland Homes paid SAC fees for all 175 units and the city provided payment to the
Metropolitan Council for only 130 of those units). The remaining balance was placed in the EDA fund
reserves for use on future projects.
City staff has discussed this matter with the Director of Finance and he has indicated that the EDA can make
SAC payments on behalf of a redevelopment project. The funds for such an action would be paid out of the
EDA fund reserves from other redevelopment projects that have not received SAC credits.
RECOMMENDATION
City staff recommends that the EDA approve the enclosed resolution which authorizes the city to pay the
SAC fees for the Nevada Avenue Twinhomes project out of the EDA reserves funds.
ATTACHMENTS
. Resolution
CITY OF NEW HOPE
RESOLUTION NO. 05-
REQUEST FOR SERVICE AVAILABILITY CHARGES TO BE PAID BY THE
ECONOMIC DEVELOPMENT AUTHORITY (EDA) IN AND FOR THE CITY OF
NEW HOPE FOR THE NEVADA AVENUE TWINHOME PROJECT LOCATED AT
4301-4317 NEVADA A VENUE NORTH
(PLANNING CASE NO. 05-06)
WHEREAS, on April 26, 2004, the city of New Hope approved a purchase agreement
to sell the city owned property at 4317 Nevada Avenue to Northwest
Community Revitalization Corporation for the redevelopment of 4301-17
Nevada Avenue North into six owner occupied housing units; and
WHEREAS, on June 27, 2005, the New Hope City Council approved the final plat of
the property to re-subdivide the two existing parcels into six parcels; and
WHEREAS, on July 25, 2005, the New Hope City Council unanimously approved a
motion recommending that the Economic Development Authority in and
for the city of New Hope to pay the SAC fees out of its reserve funds that
have accumulated due to other redevelopment projects; and
NOW, THERFORE, BE IT RESOLVED, by the Economic Development Authority in and
for the city of New Hope as follows:
1. The EDA will pay the Service Availability Charges for the Nevada
Avenue Twinhome project located at 4301-17 Nevada A venue North
in the amount of $8,700.
2. The two existing service availability charges for the single family
housing units at 4301-17 Nevada A venue will be applied for the
Nevada Avenue Twinhome redevelopment project.
3. The EDA will fund the remaining service availability charges from its
reserves that have accumulated as a result of other redevelopment
projects.
Adopted by the City Council of the city of New Hope, Hennepin County, Minnesota,
this 22nd day of August 2005.
Martin E. Opem Sr.
President
Attest:
City Clerk