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010906 EDA - Official File Copy tIII:IIIIl:IISi CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North January 9, 2006 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 November 28, 2005 4. Resolution authorizing an interim agreement with PariPassu/Trio Development for the Bass Lake Road Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) 5. Discussion of Northwestern Casket Company's request for financial assistance from the city 6. Adjournment - CITY OF NEW HOPE 4401 XYLON A VENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Novernber28, 2005 Regular Meeting Ci ty 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 58th Avenue) (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; average sales price $180,000. . Ryland Proposal #2 - 4.7 acres, IS-unit three-story buildings, 90 total units; average sales rice $180,000. . Ryland Proposal #3 - 4.7 acres, includes 12 single-family homes; average sales price $280,000. . PariPassu/Trio Development - 3.2 acres plus encroachment onto golf course; 154 condominiums; 4 to 5 story building, average sales price EDA Meeting November 28, 2005 Page 1 $263,467. . Insignia - 4.7 acres plus encroachment onto golf course; three 4-story 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 ta 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 ta the budget hearing on December 5. President Opem opened the floor for public comments. Mr. Bryan Tyson, 8811 61st Avenue North, was recognized. He expressed his dissatisfaction with the constant postponement of decisions. He pointed out that most residents are preparing far the upcoming holidays, and he doubted that they would be interested in attending additional open houses. Ms. Alvina Engle, 8404 58th Avenue North, was recognized. She stated she 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 Page 2 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 58TH A VENUE) (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 ~ 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 Page 3 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 Page 4 EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development January 9, 2006 EDA Item No. By: Kirk McDonald, CD Director 4 Kim Green, CD Assistant Resolution authorizing an interim agreement with PariPassu/Trio Development for the Bass Lake Road Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) Requested Action Staff requests that the Economic Development Authority (EDA) approve a resolution authorizing an interim agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassufTrio Development. The Council reviewed the interim agreement at the vvork session on December 19. The agreement outlines how preliminary redevelopment costs and responsibilities will be shared with the redeveloper. Policy/Past Practice Priority goal number two emphasizes the maintenance and redevelopment of commercial and residential properties. Ta assist with this goal, the city often selects a preferred redeveloper and participates in a development agreement for the redevelopment of a site in the city. Background On November 28, 2005, the EDA approved a resolution far a 120-day exclusive negotiation period with PariPassu/Trio Development for the redevelopment of the Bass Lake Road Apartments site~ PariPassufTrio was one of three development teams that participated in a developer selection process, which began in the spring of 2005. City staff and consultants have met with PariPassu/Trio several times in the past few \^leeks to discuss the concept plans and begin the negotiation of a term sheet, which is expected to be completed by March 28, 2006. At tl1e December 19 work session, staff rovided an u date to the Council on the ro ress made at the Motion by ,/~/-t;/ (/-;Jfrujl Second by To: 7\, -Of ) I: \ RF A \ PLANNING \ Livable Communities \ Bass Lake Road Apts \ Q & R- Resolution approving the interium agreement with PariPassTrio for BLR project.doc Request for Action, Page 2 of 3 January 9, 2006 meetings with the redeveloper. Staff and PariPassufTrio Development have identified two basic goals to accomplish during the 120-day negotiation period. The first goal is to complete a term sheet and understand the financial feasibility of the project. The second goal is to develop a concept plan. To accomplish these goals, staff created two tracks for moving forward: 1) the development agreement track and 2) the planning track. The two tracks will occur simultaneously. 1) Development Agreement Track The goals of the development agreement track for the 120-day exclusive negotiation period are to prepare a term sheet and determine financial feasibly. At the December 19 work session, staff presented a tentative interim agreement for the Council to review. The idea for the interim agreement was discussed at the initial meeting with the redeveloper and city staff, where several key items were identified that need to be addressed to determine if and how the project will move forward. City staff and the redeveloper view the negotiation process as a partnership, so an interim agreement was proposed to outline how the partners will split the costs and the responsibilities in this early stage of negotiation. The interim agreement contains four parts. Part one describes the interim nature of the agreement. Part tvvo identifies the undertakings of the redeveloper and associated completion dates. PariPassurrrio will be responsible for conducting a Phase I environmental assessment of the site and completing soil borings and other environmental assessments, if needed. PariPassuJTrio will also develop a preliminary site plan, work with city to analyze economic feasibly, present monthly updates, and negotiate the term sheet with the city. Part three of the interim agreement describes the undertakings of the city, which include obtaining a TIFlblight analysis for the redevelopment district, determining allowable density, working to negotiate a term sheet with the redeveloper, and exploring grant opportunities. The final part, part four, describes the redeveloper deposit and cost sharing approach. It was tentatively agreed between the city and the redeveloper that that the preliminary costs would be shared 50/50. The four initial costs identified include: 1. Soil tests 2. Phase 1 environmental analysis 3. TIFlBlight analysis 4. Site survey Cost estimates were obtained for these proposed services and were included in the interim agreement. City staff and the redeveloper agreed that each would pay for their own consultant expenses, with the exception of Krass MOliae's fees far financial analysis, which would be shared 50/50. Since the agreement was originally drafted and reviewed by the City Council, the soil boring cost estimate changed from $3,200 to $3,500, an increase of $300, because it was agreed that the northernmost soil boring should be done to a greater depth (60-80 feet) to determine piling blow counts (see attached boring location map). In addition, Vince VanderTop, the city engine err provided a more detailed cost breakdown for the site survey. He is recommending that the city proceed with a survey of both the Bass Lake Road Apartments site and a portion of the city's golf course at a cost of $5,000, as described in the attached email correspondence. At tlle December 19 work session, the Council supported the cost sharing, agreement as outlined in the :interim agreement, but requested more specific information about the cost of Krass Monroe's services. Krass I: \ RF A \ PLANNING \ Livable Communi ties \ Bass Lake Road Apts \ Q & R- Resolution approving the interi urn agreement with PariPassTrio for BLR project.doc Request for Action, Page 3 of 3 January 9, 2006 Monroe re-evaluated their estimate of $10,000 to $20,000, and changed the estimate to $15,000. In follow-up communications, Krass Monroe explained to staff that they always try to accomplish what needs to be done as efficiently as possible. However, because there are a number of unknowns (such as environmental condition and soil corrections, financial feasibility, whether the proposed housing product will sell in this market, etc.), the amount of their fees will depend upon how many of these sorts of /I challenges" arise and how much analysis and negotiation will be needed to address them. Representatives from Krass Monroe believe that $15,000 is a reasonable estimate. If the services exceed this estimate, staff will inform the CouncillEDA and request direction. 2) Planning Track The goal of the second track, the planning track, is to develop a concept plan that meets the needs of both the redeveloper and the city. The redeveloper is in the process of creating up to three concept site plans to help determine how the building could best be accommodated with minimal impact on the neighborhood and the city golf course. PariPassu remains interested in arranging a tour for the Council/EDA and other interested parties to help identify the preferred building architecture and plans to bring back ideas for the tour to city staff in January. PariPassu and staff agree that public input will be important during the planning process. After a concept is developed and shared with the Council, it is proposed that an open house be held to solicit feedback from the community. The planning track includes planning for the proposed infrastructure improvements to Bass Lake Road, vvhich will be mostly paid for with federal grant funds. At the December 19 work session, the Council authorized staff to begin the preliminary survey for the roadway, which will provide for a better understanding of how the roadway improvements will affect the shape and size of the Bass Lake Road Apartments redevelopment site. City staff will be seeking authorization from the City Council to complete a full feasibility report for the roadway improvements at a future meeting. Funding: If the EDA formally approves the attached interim agreement, the development team will submit a $500 nOl1- refundable fee and a $5,000 refundable deposit to cover their portion of incurred costs. The redeveloper will be required to replenish this deposit when the balance falls below $1,000, upon request by the city. Funds for the city's preliminary redevelopment expenses will come from the EDA budget. After the TIF district is established for the project, the city may decide to seek reimbursement for eligible expenses. Recommendation: Staff recommends approval of the attached resolution authorizing an interim agreement with PariPassufTrio Development. Attachments: 1. Interim agreement 2. Soil boring location map 3. Email correspondence from city engineer 4. Wark plan for planning track I: \ RF A \ PLANNING \ Livable Communities \ Bass Lake Road A pts \ Q & R- Resolution approving the interium agreement with PariPassTrio for BLR project.doc City of New Hope EDA Resolution No. 2006- Resolution authorizing an interim agreement with PariPassu/Trio Development for the Bass Lake Road Apartments redevelopment project WHEREAS, the Bass Lake Road Apartment site (the "Site") consists of approximately 3.6 acres of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue; and, WHEREAS the City plans to redevelop the Site into for-sale multi-family housing; and, WHEREAS, at its meeting on November 28, 2005, the Economic Development Authority (EDA) authorized a four-month exclusive negotiation period with PariPassufTrio Development (the "Redeveloper") to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; and, WHEREAS, in its proposal, the Redeveloper proposes to invest additional time, expertise and money to continue to work with the City to refine the site plan and examine the economic feasibility of redeveloping the Site; and, WHEREAS, preliminary redevelopment activities need to be accomplished and the City and the Redeveloper seek to work as partners to pay for and accomplish the necessary tasks. NOW, THEREFORE, BE IT RESOLVED, that the Economic Development Authority of the city of New Hope, 1v1innesota authorizes the interim agreement ("Exhibit A") between the City and Parjpassu Development CorpfTrio Development, which outlines responsibilities and cost sharing agreements between the two parties. Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, this 9th day of January, 2006. Martin Opem Sr., President Attest: Daniel J. Donahue, Executive Director Exhibit A INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 9th day of January, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper"). WHEREAS, following Boisclair Corporation's withdrawal of its proposal in January 2005, in March 2005 the Authority distributed requests for proposals and hosted a developers' roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project"); WHEREAS, several candidates submitted responses and, over the summer, the candidates met with City and Authority staff and discussed plans for the Project at the July 18, 2005 City Council meeting; WHEREAS, several development teams submitted proposals to the City, which were presented to City Council on September 19 and October 10,2005; WHEREAS, at its meeting on November 28, 2005, the Authority authorized a four- month exclusive negotiation period with the Redeveloper to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement. The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Proj ect, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertaking:s of the Redeveloper. (a) By January 31, 2006 the Redeveloper will: . Conduct a Phase I environmental assessment of the site. . Complete any soil borings and other environmental assessment needed to estimate the cost of required environmental remediation and soil corrections necessary to complete the Project. (b) From the date hereof through March 28,2006 the Redeveloper will: . In consultation with the Authority, the City and City residents, develop a preliminary concept plan. . Work with the Authority's redevelopment consultants to analyze preliminary economic feasibility. . Present monthly progress reports to City Council. . Negotiate the Term Sheet with the Authority. 3. Undertakings of the Authority. (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the site. (b) The Authority will take the following actions: . By January 31, 2006, determine at least on a preliminary basis whether the blight test for a redevelopment district is likel~ to be met. . By March 28, 2006, determine the Authority's and the City's willingness to allow a density that maximizes the financial feasibility of the Project that is consistent with market conditions. . Through March 28, 2006, negotiate the Term Sheet with the Redeveloper. . On an ongoing basis, explore grant opportunities and other funding sources. 4. Redeveloper Deposit: Cost Sharing. (a) During the term of this Agreement, the Authority shall pay the fees and costs of its planning consultants, Northwest Associated Consultants; its engineering consultants, Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sandrall, P .A. The Redeveloper shall pay the fees and costs of its consultants. 2 (b) The Authority and Redeveloper agree to split the following costs equally: (i) Fees incurred after December 9, 2005 by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and project feasibility analysis, review of blight analysis, review of site qualification for inclusion in a tax increment district and drafting and negotiation of a term sheet, and (ii) Preliminary redevelopment expenses including environmental analysis, soil borings, blight analysis, boundary survey and other expenses that the parties agree shall be subject to cost sharing. The projected budget for these costs is as follows: Description Projected Amount Phase I environmental assessment ............................ $ 1,700 S 0 i 1 b 0 rin g s ............................................................... 3,500 B Ii gh t an al ysi s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 Boundary and tapa survey and golf course top 0 su.rv ey ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Fees of Krass Monroe, P .A. ...................................... 15,000 (c) Upon execution of this Agreement, the Redeveloper shall pay a non- refundable fee of$500.00 to the Authority. The Redeveloper shall also make an initial deposit of $5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. The Authority will reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to this Paragraph 4. (d) Before either party incurs expenses of the type set forth in subparagraph (b )(ii) above, such party shall provide to the other a copy of the contract with the service provider (or, in the absence of a contract, a statement of the scope and terms of the engagement) and a statement of the projected fees involved. Both parties must approve expenses prior to their being incurred. (e) In accordance with City policy, follo\\ring approval of the Term Sheet by the Authority, the Redeveloper will pay all normal and customary City and Authority costs associated with the plan review and approval process. 5. City and Authoritv Use of Work Product. The Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non-proprietary work product, including market analyses, soil and engineering reports, geoteclmical reports, infrastructure construction budgets and other documentation produced specifically for the site. 3 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. G:\\VPDATA~~rr:\V HOPE\19\DOC\INTERTh1 AGREE V3.DOC ECONOMIC DEVELOPMENT AUTHORITY rn AND FOR THE CITY OF NEW HOPE, MINNESOTA By: President By: Executive Director Authority Signature Page - Interinl Agreenlent 4 P ARIP ASSU DEVELOPMENT CORP. By: Its: Redeveloper Signature Page - Interi111 Agreenlent 5 -" .' ! ~ ~ ! I q ~i - WI ~ g :0 I ) en .::::. C)N~ ::Ie. i c::::~.; ~ :t; ~ I L. c;;:' -< .. i: I -c-!e' <> cQ - g: ; .- 0: I .~ + dJ,::O) I i I Q:ga;.! '0 _ r-~ ; ~ c-l ~=:I I 001:") ~ ~ ~ g-CQ C) Cl_ lDC('l,l .--J ~=; I '" .:;e2_ '4 U ~ ~ I CJ I it GJ AJ?-:d:~Y' . :..*:.~~..:.;.."...~ .....'... C{:~~._~_;~/ '. .<~-:+,.~~< .~":-'~~~~. --- ~ ~ ~ ~ I f ~I ~ ~---!. J i ~ I i I , i .--. ...... / ~! I ~ Page 1 of 1 Green Kim From: Vander Top) Vince T [vvandertop@bonestroo.com] Sent: Wednesday, December 28, 2005 10:30 AM To: McDonald Kirk; Green Kim Cc: Gay Cerney; Wagenaar, Peter M; Quisberg, Jason P; Johnson Guy; Coone Paul Subject: Bass Lake Road Apartment Survey I have reviewed the potential redevelopment project with Pete W. Pete is a RLS in our 81. Paul office. Pete started with Bonestroo earlier this year and he brings a lot of knowledge and experience. I'm sure you'll get a chance to meet him at some point. As this project continues to move forward, Pete would coordinate all of the Land Surveying requirements. Pete is also familiar with the Paripassu group as he is currently working with them on another project. Pete also knows Gordy Jensen (Sondrall's partner) from other projects. Overall) Pete's involvement should greatly improve the communication process over our recent experience with Winnetka Green. After reviewing the project, we would propose the following survey costs: Part 1 - Bass Lake Road Apartments Complete a boundary and topa survey. Include legal description. This would assure that we are all using the same property lines and boundaries for the development. Lump Sum = $2)800 Part 2 - Addendum to Part #1 If the project continues to move forward and the City purchases the property to sell to the developer, it is likely that an AL TA Survey will be required. The survey work completed in Part #1 could be converted into an AL TA survey after the completion of a title commitment by others. Additional time for the surveyor would also be required equating to approximately $1,000. This part could be discussed further and approved in the future if necessary. Part 3 - Golf Course Survey There is potential for the development to encroach onto the golf course property and possibly impact the course and parking lot. It would be appropriate to do a topo survey of the parking lot, area around the club house, and all of hole #9 including the pond, green, and fairway. This work on the golf course property could be complete for $2,200 At this time, we would only need to move forward on Part #1, but it would be efficient to do Parts #1 and #3 at the same time. Part #2 can wait. Also, the Bass Lake Road survey may be starting as early as today. The surveyor is reviewing some things with Jason Quisberg this morning. The Bass Lake Road survey is independent of the Bass Lake Road Apartment survey discussed in this erneil) but the two will be coordinated. We can review this information this afternoon at our meeting. 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Pi c:r g= r-8 Fr n 0- g =:r" Eo: e! 8 ~ ~. 0-- ~ ?- ~ c.. a s:r- 3 !]. . ~ ~.... ~ ~ 0 ~ 0:9- QQ. ~ (]q .;-.. ~ C/J j::.) ~ -5 ~ 0... t""'t' n l""t- . lJ1 t"':l 0 I"""t- ~ (]q ~. ~ ~ _ ~ ('0 ~ 0 M 0....0.. h - u ::J CFJ ~ _ g ~ (tl ~~. n' (5 0" fro ro ~ ~ 8' ~8g g ~~ ~ "' n ~ (tl 0". 0 o l""t- CFJ 0 r' o ~. ~ S ~ 0.. EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development January 9, 2006 Planning and Development Item No. By: Kirk McDonald, CD Director 5 Kim Green, CD Assistant Discussion of Northwestern Casket Company's request for financial assistance from the city Requested Action Staff requests that the Economic Development Authority (EDA) discuss the attached request from Northwestern Casket Company seeking financial assistance and provide direction to staff on the city's response. The company is in the process of relocating their business from Minneapolis to New Hope and is requesting assistance to move into and equip their new location in New Hope. A company representative met with city staff this fall and staff indicated that any request for assistance would need to be submitted in writing and would be reviewed by the CouncillEDA. Staff sent a letter with a copy of this information to North\.vestern Casket Company and invited a representative to attend the EDA meeting, if desired. Policy/Past Practice The City Council and EDA have provided financial assistance to businesses in the past. In 2004, the EDA provided Alana Group, Inc. with a $175,000 loan to purchase and improve their new location after the city acquired the business's previous location at 7615 Bass Lake Road for the Winnetka Green development. The city also provided a $140,000 loan in 1995 to Universal Color Lab to facilitate business relocation within the city and expansion. Background On December 13, 2005, Northwestern Casket Company sent a letter to the city seeking financial assistance to help with the costs associated with moving and equipping their new location in New Hope in the south portion of the industrial building located at 4300 Quebec A venue North. The company has a five-year lease beginning on January 1, 2006, with two five-year options for renewal. As David Kall, CFO, described in his letter to the city, Northwestern Casket Company is a wholesaling manufacturing company that distributes casket and cremation products to funeral homes across the Midwest. The company's primary manufacturing is sewin and u holster of caskets, and the also do custom embroider . The com an was inear orated in Motion by Second by /i V'~ To: C) ~L.;e ~.. t ::J J~ .~.~ F ' ;I. I:\RFA \ PLANNING \ Industrial\Q- NW Casket Co re uest for financial assistance.doc Request for Action, Page 2 of 2 January 9, 2006 1882 and has been located in northeast Minneapolis since 1886. The casket company's relocation to New Hope will bring approximately 28 jobs to the city. The casket company's total moving and equipping costs are estimated at $125,000, which includes installation of a dividing wall, offices, air compressor and lines, telephone system, and other interior improvements to the building that will accommodate the business's needs. The company has obtained several permits for the work, and construction is well undervvay. Staff has researched options for assistance by contacting the state, reviewing the city's business subsidy policy, and discussing options with the city's finance director. It appears that Northwestern Casket Company would not qualify for financial assistance from the state of Minnesota's Deparhnent of Employment and Economic Development (DEED). The state's various financial assistance programs require that a company provide new employment opportunities, but Northwestern Casket Company is not planning an increase in the total number of jobs that the company provides at this time. Staff reviewed the city's business subsidy policy. The city of New Hope Policy for Business Subsidies, adopted in 2000, states that the objective of business subsidies are to II attract and enhance commercial and industrial development hereby increasing or retaining employment opportunities for New Hope resident and development the job base and tax base of the city./I The casket company mayor may not meet the first criteria-increased employment opportunities. The company's relocation to New Hope will bring approximately 28 jobs to New Hope; however, the jobs vvill be relocated from the city of Minneapolis and mayor may not be available to New Hope residents. Similarly, the company mayor may not meet the second criteria-development of tax base. The company will occupy the south section of the vacant industrial building at 4300 Quebec A venue North. This occupancy "vill not increase the city's tax base, as the building is already on the city's tax rolls. However, the building has been vacant for a few years, so the new occupancy is welcomed because it will be protecting the city from a loss in current tax base that could accompany a continued vacancy. If the EDA decides to provide assistance to the casket company, the New Hope business subsidy policy would alIo\v for the provision of a grant or a loan, as long the criteria specified in the policy are met. Per the policy, a business subsidy of less than $25,000 does not need to comply with the business subsidy criteria outlined in the city's policy. If the EDA denies the request, staff will notify the company, welcome them to the city, and thank them for their inquiry. Funding If the EDA chooses to provide assistance, staff will coordinate with the financial director and provide options on available resources at a future EDA meeting. Funding would come from the 2006 EDA funds. Attachments . Letter from Northwestern Casket Company requesting assistance . Response letter sent to Northwestern Casket Company/ Invitation to meeting . New Hope Business Subsidy policy . Location map I: \ RF A \ PLANNING \ Industrial \ Q- NW Casket Co request for financial assistance.doc THE NORTHWESTERN CASKET COMPANY 1707 Jefferson Street N.E. - Minneapolis, MN 55413-1494 Telephone (612) 789-4356 - 1-800-869-1357 Fax (612) 789-3871 - 1-800-753-2236 December 13, 2.005 Mr. Kirk McDonald Director of Community Development 4401 Xylon Ave N Hew Hope Mn 554428 Dear Sir; As you suggested, tbis letter is a follow up to our conversation regarding North\vestem Casket Company request for financial assistance in moving our company and approximately 30 employees to New Hope. The location is the south part of the building at 4300 Quebec A venue North, New Hope, Mn. The lease is for five years beginning January 1, 2005 and has Two 5 year options for renewal. Northwestern Casket Company was incorporated on June 1, 1882 and built the current location in 1886. We have been in our present location since 1886. We sold our building in 1978 and have been leasing since then. Weare moving because the current owner wants to convert the building into condominiums. Northwestern Casket Company currently has 28 employees. We are a wholesale manufacturing and distribution of caskets and cremation products to funeral homes. Our primary manufacturing is sewing and upholstery of casket. We also do custom embroidery. We deliver our own products on our own trucks, to the customers in the upper Midwest. "(Minnesota, Wisconsin, Iowa, North & South Dakota and the Upper part of Michigan. We are a niche company, most of our manufacturing is customized to include special colors or designs of the interior or exterior of the casket, many times complimented with custom embroidery. We estimate our costs of moving and equipping the new building for manufacturing will cost December 13, 2005 cont. approximately $125,000.00. The breakdovvn is a follows: Dividing wall ( sheet rock) $15,000.00 Sheet rock offices 7,660.00 Sheet Rock wall to house sewing and upholstery 21,750.00 Air make up unit 22,500.00 Paint Booth 13,157.00 Paint Mix Room( paint storage) 9,495.00 Air Compressor 3,000.00 Air Lines 1,000.00 Telephone System 5,000.00 Electrical 15,000.00 Cut masonry opening in Block Wall 1,800.00 Mise Expense (Permits etc) 6,638.00 Total $125,000.00 The above does not include moving expenses. Weare writing to ask if you can assist in getting any monetary aid from the City of New Hope or the State of Minnesota that could help us with our move our Company and employees to New Hope. We appreciate any consideration your can give us. Thank you, Northwestern CasketrCompany . .~' Oa~ rI j<cOf() David L. Koll, CFO December 15, 2005 David L. Koll The Northwestern Casket Company 1707 Jefferson Street N.E. Minneapolis, MN 55413 Dear Mr. Kall: I am writing to let you know that the city received your letter with the request for assistance in identifying monetary aid that could help with your company's relocation to New Hope. Staff is in the process of identifying possible city and state programs that may be of benefit to your company. It is likely that the City Council would discuss any options for assisting your business at the first meeting in January, which is on Monday, January 9 at 7 p.m. Please keep this date open, if possible. I will contact you again soon to provide more information on possible assistance programs. Please feel free to contact me at 763-531-5119 or kmcdonald@ci.new- hope.mn.us if you have any questions. Sincerely, Kirk McDonald Community Development Director CC: Dan Donahue, City Manager Kim Green, Community Development Assistant December 28, 2005 David L. Koll The Northwestern Casket Company 1707 Jefferson Street N.E. Minneapolis, MN 55413 Dear Mr. Kall: As I suggested in my previous letter, at the January 9, 2006 meeting, the New Hope Economic Development Authority (EDA) will be reviewing your request for financial assistance for costs associated with moving and equipping your new New Hope location. Representatives from your company are welcome, but not required, to attend the meeting. The EDA meeting directly follows the regular City Council meeting, which begins at 7:00 p.m. Enclosed is a copy of the information staff provided the EDA related to your request. Please feel free to contact me at 763-531-5119 or kmcdonald@ci.new- hope.mn.LIs if you have any questions. ~' ~ \ :- ". \ I ~~~~~~ _.~ Kirk McDonald Community Development Director CC: Dan Donahue, City Manager Kim Green, Community Development Assistant CITY OF NEW HOPE 4401 Xylon Avenue North + New Hope, Minnesota 55428-4898 · www. cLnew-hope.mn.us City Hall: 763-531-5100 + Police (non-emergency): 763-531-5170. Public Works: 763-592-6777. TDD: 763-531-5109 City Hall Fax: 763-531-5136 + Police Fax: 763-531-5174 · Public Works Fax: 763-592-6776 ... BOA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development July 24f 2000 EDA Item No. B: Kirk McDonald 5 RESOLUTION ESTABLISHING A BUSINESS UBSIDY CRITERIA PURSUANT TO MINN. STAT. 116J.993 -116J.995 REQUESTED ACTION Staff recommends that the EDA approve the enclosed Resolution Establishing a Business Subsidy Criteria, which adopts the City of New Hope Policy for business subsidies. POLICY/PAST PRACTICE The State of Minnesota has recently required all municipalities to adopt policies regarding business subsidies. BACKGROUND A public hearing was held on this issue at both the City Council and EDA meetings on June 26. The public hearings were closed at said meetings and the consideration of the policy was referred to a City Council Workshop. The City Council directed staff to bring back a revised policy for consideration at the July 24 Council Meeting. Attached to the enclosed resolutions are the revised pOlicies that have been prepared by the City Attorney. Per the City Attorney's correspondence, the criteria has changed from the document which was previously provided. SpecificallYJ the enclosed policy now sets forth expressed wage goals in connection with a provided subsidy. Said specific wage goals resulted from a legislative amendment occurring in the 2000 session. Apparently, cities were adopting policies permitting them to establish wage and job goals on a case by case basis. The legislature apparently disliked that practice and required specific goals to be set forth in the policy. The City can deviate from those goals, however1 any deviation must be accompanied by a written resolution making fjnds for the deviation. The enclosed policy sets a wage goal for New Hope that would require the creation of retention of at least one job paying a living wage for every $50,000 of assistance provided. This basically means a job which pays at least $10 per hour or approximately $20,000 annually based on federal poverty level definitions. The Council and EDA are free to raise or lower that number as they see fit and they can also use a specific hourly wage number and do not have to base it on a formula using the federal poverty level. The Council and EDA are free to discuss the specific criteria or change or amend it in any fashion they see fit. The only requirement is that the City has in the policy a specific wage and job goal if the creation or retention of jObs are the public purpose for the subsidy. MOTION BY SECOND BY TO: l:RFA\Q-Bus Subsidv .. Request for Action Page 2 . 07/24/00 The legislature also amended and broadened the number of exceptions that will preclude the application of the enclosed policy. Those new exceptions are set forth in numbers 1 a through 22 of the exceptions to criteria. Further, number 5 was broadened to include designated historic preservation districts, number 8 was amended to specifically include hazardous substance tax increment financing subdistricts and number 14 was amended to include refunding bond issues and bonds sold for the benefit of 501 (c )(3) organizations. The resolution states: 1. That each business subsidy will be evaluated pursuant to the criteria in the policy. 2. That the City will determine job and wage goals for each business subsidy which goals will be sensitive to prevailing wage rates, local market and economic conditions, economic and market forces over which neither the community or developer have control) the financial resources of the developer and the competitive environment of the market. However, the minimum wage and job goals of the attached criteria must be met per the terms of the criteria. 3. That any deviation from the attached criteria will be based on written findings set forth in a resolution explaining the reason for any deviation from the criteria. Staff recommends approval of the resolution. ATTACHMENTS . Resolution . Policy for Business Subsidies . City Attorney Correspondence ~ . - or <II CITY OF NEW HOPE EDA RESOLUTION NO.2000- RESOLUTION ESTABLISmNG A BUSINESS SUBSIDY CRITERIA PURSUANT TO MINN. STAT. ~~ 1161.993 - 116.1.995 BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the City of New Hope is a fully developed community and pursues redevelopment as a way to maintain and increase tax base, create new or retain present job opportunities, remove blighted structures and maximize underutilized sites; and WHEREAS, the State of Minnesota requires local governments to adopt business subsidy policies as specified in Minnesota Statutes, Sections 116J.993 through 116J.995; and WHEREAS, Minnesota Statutes 116J. 993, Subdivision 3defmes business subsidy as "... local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of governmental facilities given to a business", subject . to various exceptions; and WHEREAS, the Economic Development Authority in and for the City of New Hope recognizes that it undertakes redevelopment projects to achieve public purposes, including the creation or retention of new jobs that pay living wages; and WHEREAS, the Economic Development Authority in and for the City of New Hope also recognizes that job creation may not be a primary purpose for some redevelopment projects which are intended to eliminate blight, increase community vitality and serve broad public purposes. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That each business subsidy will be evaluated pursuant to the criteria attached hereto as Exhibit A. 2. That the City will determine job and wage goals for each business subsidy which goals will be sensitive to prevailing wage rates, local market and economic conditions, economic and market forces over which neither the community or developer have control, the fmancial -1- ... L resources of the developer and the competitive environment of the market. However, the minimum wage and job goals of the attached criteria must be met per the terms of the criteria. 3. That any deviation from the attached criteria will be based on written findings set forth in a resolution explaining the reason for any deviation from the criteria. Dated the 24th clay of July, 2000. W. Peter Enck, President Attest: Daniel J. Donahue, E~ecutive Director P:\Attom:y\Cab Resolurlocs\ltcso .Est Bnsi.tas Subsidy Cri~ria . EDA. wpd -2- T oJ EXInBIT A CITY OF NEW HOPE POlley FOR BUSINESS SUBSIDIES Purpose: The purpose of this policy is to set guidelines that would enable the City of New Hope to comply with Minnesota Statutes 116J. 93, et seq. Objective: The objective of the City of New Hope is to attract and enhance commercial and industrial development hereby increasing or retaining employment opportunities for New Hope residents and developing the job base and tax base of the City. Definitions: A. Business Subsidy. A business subsidy means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business. B. Comprehensive Health Insurance isdefmed as: . Employer 100% premium payment for individual coverage or 80% premium payment for family coverage; . Employer minimum payment of 80% for office visits, emergency care, surgery and prescriptions; . A maximum yearly deduction of $1,000; and . Maternity coverage. c. Living Wage will be defined as 125 % of the federal poverty level for a family of four · Businesses that provide employer-paid comprehensive health insurance may pay a living wage as defined at 110% of the federal poverty level for a family of four. D. Responsible Labor Relations are defmed as neutrality on union organizing, providing a complete and accurate list of names and addresses of employees, reasonable access to employees and facilities during non-working periods, voluntary recognition based on a card check demonstrating that a union represents a majority of employees in a bargaining unit, and binding arbitration on the fIrst contract. -3- .. L Procedure: This policy will be used for business subsidies that equal or exceed $25,900. In the event a subsidy is in excess of $100,000, the determination shall be preceded by a public hearing. A proposed subsidy shall be considered to offset land costs, site development, building costs and design specifications that exceed the City's maximum requirements. Minimum Requirements: A recipient of a business subsidy must meet the following minimum requirements. Any deviation from these minimum. requirements shall be documented in a written resolution setting forth the reasons for the d~viation. A certified copy of said resolution shall be attached to the next DTED annual report. The City shall evaluate each request for a business subsidy based on the best interests of the City and its residents. In determining whether to approve a subsidy, the City shall consider facts it deems appropriate, which shall include the following: 1. A business subsidy must have a defined public purpose which may include, but not be limited to, increasing the tax base of the City. Job retention may also be a valid public purpose if the job loss is specific and demonstrable. 2. Proposals for direct loans must be unable to obtain full private fmancing before applying for city funding. 3. Loan guarantees must have participation by a private lender to assume at least 50 % of the risk. 4. Business subsidies in the form of grants must be structured as forgivable loans. For other types of subsidies, the agreement must state the fair market value of the subsidy to the business, including the value of conveying property at less than a fair market price, or other in-kind benefits to the business. 5. A business must set goals to be achieved within two years for the number of jobs that they will create (or retain when job loss is specific and demonstrable) and the wages that these jobs will pay. Businesses must create (or retain) one full-time living wage job per $50,000 of assistance. Jobs will only be considered created if they are in addition to the highest number of employees that the business has had in the 18 months prior to receiving the subsidy. 6. A business must have a goal for the percentage of new jobs that will be held by City residents. 7. After a public hearing, if the creation or retention of jobs is determined not to be a goal, the wage and job goals may be set at zero. -4- j 8. The commitment of the proposed development to continue operations at the site where the subsidy is used for at least five years after the benefit date. 9. The ability of the proposed development to fulfill or provide a desired amenity, facility or service that is not provided by the City. 10. The business must disclose any potential adverse impact on the environment that could result from this project. Exceptions to Criteria: Consistent with Minnesota Statutes 116J.993, Subdivision 3, the following forms of fInancial assistance are not a business subsidy, and recipients will not typically be required to meet the criteria for business subsidies set forth in this policy statement: 1. Business subsidy of less than $25,000; 2. Assistance that is generally available to all. businesses or to a general class of similar business, such as a line of business, size, location, or similar general criteria; 3. Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefIt a single business or defined group of businesses at the time the improvements are made; 4. Redevelopment property polluted by contaminants as defined in Minnesota Statutes, Section 116J.552, Subdivision 3; 5. Assistance for designated historic preservation districts or assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code, provided that the assistance is equal to or less than 50 percent of the total cost; 6. Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; 7. Assistance for housing; 8. Assistance for pollution control or abatement, including a hazardous substance tax increment fInancing subdistrict as defmed in Minn. Stat. ~ 469.174(23); 9. Assistance for energy conservation; 10. Tax reductions resulting from conformity with federal tax law; 11. Worker's compensation and unemployment compensation; 12. Benefits derived from regulation; 13. Indirect benefIts derived from assistance to educational institutions; 14. Funds from bonds allocated under Minnesota Statutes, Chapter 474A, bonds issued to refund outstanding bonds and bonds issued for the benefIt of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended; 15. Assistance for a collaboration between a Minnesota higher education institution and a business; 16. Assistance for a tax increment financing soils condition district as defined under Minnesota Statutes, Section 469.174, Subdivision 19; 17. Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; -5- 18. General changes in tax increment financing law and other generated tax law changes of a principally technical nature; 19. Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; 20. Funds from dock and wharf bonds issued by a seaway port authority; 21. Business loans and loan guarantees of $75,000 or less; 22. Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and 23. Any other forms of assistance that may be defined by law as not constituting a business subsidy under Minnesota Statutes, Section 116J.993, Subdivision 3. Preferences: All other things being equal and to the extent legally possible, preference will be given to applicants meeting the following criteria: 1. Businesses that contribute to employee child care and retirement accounts; 2. Businesses that are locally owned; 3. Businesses that engage in responsible labor relations; 4. Businesses that have a goal that 25 % or more of the new jobs will be held by City residents ; 5. Businesses that have traditionally paid living wages. P:\Anorney\Cnh ResoIutions\R.eso Est Business Subsidy Criteria. EDA.wpd -6- ~i;i4 ~AA ~U~4H~~i~~ JENSEN & SO~1)RALL1P PA LgjUU~ UJ/.1.O/uu JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EnINBROOK CROSSING, STE. 201 BROOKLYN PARK, 1\{JNNESOTA 55443-1968 TELEPHONE (763) 4Z4-8811 . TELEFAX (763) 493-5193 e-mail Iaw@jensen-sondraJl.com GoRDON 1... JENSEN* STEVEN A. SOND1W.L MAAm P. MALECHA July 18, 2000 WII.I.1AM c. STRAITt C. ALDEN P.E.ARSONt JUUE A. 1lD.LL Kirk McDonald OFCO'UNSEL Community Development Director lDRENS Q. BRYNEST AD City of New Hope 4401 Xylon A venue North New Hope, MN 55428 Re: New Hope Business Subsidy Criteria 0111' File No.: 9.9.10049 Dear Kirlc Please find enclosed for consideration at the luly 24,2000 New Hope City Council and New Hope EDA meetings a Resolution Establishing Business Subsidy Criteria pursuant to Minnesota Statutes. Section 1161.993 to 1161.995. Attached to both Resolutions are the specific CJtteria.. As you know, a public hearing was held on this issue at both the City Council and EDA meetings on June 26.. The public hearings were closed at said meetings and the consideration of the policy was referred to a City Council workshop. The City Council directed staff to bring back a revised policy for consideration at the luly 241h meeting. Attached to the enclosed Resolutions are the revised policies. The criteria has changed from the document which was previously provided. Specifically, the enclosed policy now sets forth expressed wage goals in connection with a provided subsidy. Said specific wage goals resulted from a legislative amendment occurring in the 2000 session. Apparently, cities were adopting policies permitting them to establish wage andjob goals on a case by case basis. The legislature apparently disliked that practice and required specific goals to be set forth in the policy. We can deviate from those goals, however, any deviation must be accompanied by a written resolution making findings for the deviation. Basica.11y, the enclosed policy sets a wage goal for New Hope that would require the creation or retention of at least one job paying a living wage for every $50,000 of assistance provided. This basically means ajob which pays at least $10 per hour or approximately $20,000 annually based on federal poverty level definitions. The Council and ED A are free to raise or lower that number as they see fit. Also, they can use a specific hourly wage number and do not have to base it on a formula using the federal poverty level. The Council *ac.J hupc:ny Ww Spa:iUu and EDA are free to discuss the specific criteria and change or amend it in any fashion they 0:zti6cd By n.: see fit. The only requirement is that they have in their policy a specific wage and job goal J6mcsoc& &a:e B;r Aaoc:iatioa if the creation or retention of jobs are the public purpose for the subsidy. tQuaJi6cd ADR. Nc=traJ 07/18/00 11:14 FAX 7634935193 JENSEN & SONDRA..L.L. t'A - . . . ,.. : July 18, 2000 Page 2 The legislature also amended and broadened the number of exceptions that will preclude the application of the enclosed policy. Those ne'Y exceptions are set forth in numbers 18 through 22 of the exceptions to criteria. Further, number S was broadened to include designated historic preservation districts, number 8 was amended to specifically include hazardous substance tax increment financing subdistricts and number 14 was amended to include refunding bond issues and bonds sold for the benefit of SO 1 (c )(3) organizations. Please contact me if you have any questions or comments concerning the substance of this letter, the Resolutions or the business ~ubsidy criteria. Also note that a resolution will be required from both the City Council and the BDA. Very truly yours, Q: Steven A. Sondrall JENSEN&.~PA Enclosures cc: Dan Donahue Phil Kern Daryl Sulander Valerie Leone CNHl~1.a'.wpd = . iJ~~7'~~.::~;:;~. ~'~ ..~ ~~ra;i-:i:.~~ -~~'i~'~d~~#fj.~1 ~t:=~:~it~~ ~ o - :~r t:':l N ~ "":'",:; ,r- ~" . r-[. . 1.....J. ~4, <' $'- ~~!~ ~_: ~:"j N ,",.-t ~ y- - . It ~ ~.,. ri'n ...,..-^}I~{;:::t ~ ~l! ~"';r ~ ~ v.. ""....... A ... 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