112805 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes November 28, 2005
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 9:05 p.m.
ROLL CALL
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
Valerie Leone, City Clerk
Kirk McDonald, Director of Community Development
Steve Sondrall, City Attorney
Vince VanderTop, Assistant City Engineer
APPROVE MINUTES
Motion was made by Commissioner Hoffe, seconded by Commissioner Nolte,
to approve the Regular Meeting Minutes of September 12, 2005. All present
voted in favor. Motion carried.
IMP. PROJECT 795
President Opem introduced for discussion Item 4, Resolution authorizing an
Item 4
exclusive negotiation period between the Economic Development Authority
and the selected developer for the Bass Lake Road Apartments redevelopment
site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58 Avenue)
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(improvement project no. 795).
Ms. Kim Green, community development assistant, reviewed action taken to
date for the Bass Lake Road redevelopment project. She stated staff is
requesting that the EDA identify the preferred developer and adopt a
resolution authorizing an exclusive 120-day negotiation period with the
selected developer. Ms. Green reviewed the latest proposals submitted by the
three developers:
Ryland Proposal #1 - 3.2 acres, 12-unit three-story buildings, 60 total units;
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average sales price $180,000.
Ryland Proposal #2 - 4.7 acres, 18-unit three-story buildings, 90 total units;
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average sales rice $180,000.
Ryland Proposal #3 – 4.7 acres, includes 12 single-family homes; average
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sales price $280,000.
PariPassu/Trio Development - 3.2 acres plus encroachment onto golf
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course; 154 condominiums; 4 to 5 story building, average sales price
EDA Meeting November 28, 2005
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$263,467.
Insignia – 4.7 acres plus encroachment onto golf course; three 4-story
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buildings with 118 to 120 condominiums; average sales price $265,777.
Ms. Green also illustrated the preliminary financial analysis of each proposal.
President Opem noted that PariPassu is the only proposal that shows a
positive figure.
Ms. Green reported that the value of vacant land changes according to
location, the presence of site improvements, and the type of land use. She
stated it is difficult to provide an accurate estimate of the value of the golf
course land without conducting a detailed analysis, but at this time staff is
averaging the value at six to ten dollars per square foot. The proposal by
Insignia is based on 24,400 square feet of golf course property or $146,400 to
$244,000; and the proposal by PariPassu is based on 21,200 square feet or
$127,200 to $212,000. Ms. Green also reported that the city attorney reviewed
the certificate of title for the golf course and the property is not subject to use
restrictions. She also illustrated a rough parking lot sketch showing how the
lot could be reconfigured to accommodate the golf course parking.
Ms. Green emphasized that staff has been pleased with all three development
teams. She explained that the project will be refined after the EDA selects a
developer and enters into an exclusive negotiation.
The EDA debated whether to postpone the developer selection to allow the
community to review the latest plans. Representatives of Insignia and
PariPassu addressed the EDA and explained the status of the proposals. The
majority of the EDA agreed that a developer must be selected in order to
move forward to refine the project and financial information. Commissioner
Gwin-Lenth pointed out that selecting a developer is the next step of the
process, but it does not lock the city into the project.
Commissioner Hoffe stressed that the plans have changed and community
input is vital. Mr. Donahue indicated an open house could be scheduled prior
to the budget hearing on December 5.
President Opem opened the floor for public comments.
Mr. Bryan Tyson, 8811 61 Avenue North, was recognized. He expressed his
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dissatisfaction with the constant postponement of decisions. He pointed out
that most residents are preparing for the upcoming holidays, and he doubted
that they would be interested in attending additional open houses.
Ms. Alvina Engle, 8404 58 Avenue North, was recognized. She stated she
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owns one of the single-family homes that may be included in the project. She
urged a decision by the EDA so that the residents would at least know the
scope of the project. She noted she does not have a preference on any of the
proposals or developers but would appreciate a decision. She noted to
postpone the decision longer would be an injustice to both the residents and
the developers.
EDA Meeting November 28, 2005
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MOTION
Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
Item 4 Nolte, to recommend PariPassu Development Corporation/Trio
Development as the selected developer for the Bass Lake Road Apartments
redevelopment project. The following voted in favor: Opem, Gwin-Lenth,
Nolte; and the following voted against the same: Hoffe, Sommer. Motion
carried.
President Opem expressed the city’s gratitude to Insignia Development and
Ryland Homes for their time and efforts in working with the city on the
proposals. He encouraged them to participate in future city projects.
EDA RESOLUTION
Commissioner Nolte introduced the following resolution and moved its
05-09 adoption: “RESOLUTION AUTHORIZING AN EXCLUSIVE
Item 4 NEGOTIATION PERIOD BETWEEN THE ECONOMIC DEVELOPMENT
AUTHORITY AND PARI PASSU/TRIO DEVELOPMENT FOR THE BASS
LAKE ROAD APARTMENTS REDEVELOPMENT SITE (8400 AND 8420
BASS LAKE ROAD AND 8401, 8411, AND 8421 58 AVENUE)
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(IMPROVEMENT PROJECT NO. 795).” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon
vote being taken thereon, the following voted in favor thereof: Opem, Gwin-
Lenth, Nolte; and the following voted against the same: Hoffe, Sommer;
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.
IMP. PROJECT 792
President Opem introduced for discussion Item 5, Motion authorizing staff to
Item 5
obtain an appraisal of the Winnetka Center (4301 Winnetka Avenue North)
and selection of an appraisal firm (improvement project no. 792).
Ms. Kim Green, community development assistant, reported that staff has
obtained three quotes for an appraisal of the Winnetka Center. Staff
recommends a limited appraisal by Meeks Appraisal & Consulting, Inc. for
$3,000. She explained that a complete appraisal would be $7,000 and the
quoted hourly rate is $125. The appraisal could be completed by December 30.
Mr. Sondrall reported that he has worked with all three appraisal firms
(Hosch Appraisal, Herman Appraisal, and Meeks Appraisal) and would be
comfortable recommending any of the three for the appraisal.
The EDA discussed the benefits of a complete appraisal compared to a limited
appraisal. President Opem noted the full appraisal would show rental income
per square foot.
MOTION
Motion was made by Commissioner Sommer, seconded by Commissioner
Item 5 Gwin-Lenth, authorizing a complete appraisal of the Winnetka Center (4301
Winnetka Avenue North) to be conducted by Meeks Appraisal and
Consulting for $7,000 (improvement project no. 792). All present voted in
favor. Motion carried.
EDA Meeting November 28, 2005
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Mr. Kirk McDonald, community development director, noted he was
uncertain whether the complete appraisal quote of $7,000 was in addition to
the limited appraisal cost of $3,000 or not. Staff was directed to verify the
quote with Meeks Appraisal and report back if the cost for a complete
appraisal is greater than $7,000.
ADJOURNMENT
Motion was made by Commissioner Sommer, seconded by Commissioner
Nolte, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 10:09 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting November 28, 2005
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