Ed062303.docCITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes June 23, 2003
Regular Meeting City Hall
CALL TO ORDER
President Enck called the meeting of the Economic Development Authority to order
at 9:06 p.m.
ROLL CALL
Present: W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
APPROVE MINUTES
Motion was made by Commissioner Collier, seconded by Commissioner Sommer,
to approve the Regular Meeting Minutes of May 27, 2003
. All present voted in
favor. Motion carried.
IMP. PROJECT 665 President Enck introduced for discussion Item 4, Joint Development Proposal
Item 4 Concept Consideration and Authorization to Prepare a Purchase Agreement for
nd
City-Owned Property at 7500-7528 42 Avenue North (Improvement Project No.
665).
Mr. Kirk McDonald, Director of Community Development, stated staff is
requesting concept consideration and authorization to prepare a purchase agreement
with the developers for a joint development proposal for the city-owned site at
nd
7500-7528 42 Avenue North. The proposal is for two uses: a Culvers restaurant on
the western portion of the site and three office condominium buildings (eight
separate ownership units) on the eastern portion of the site.
Mr. McDonald updated the EDA on the proposal. The developers are offering a
combined price of $510,000 for the site, or $4.62 per square foot. The developer’s
representative, RSDS, initially proposed a brokerage fee of $40,000 to be paid by
the city. At the EDA’s request, the brokerage fee has been eliminated from the
proposal. He also reported that storm water ponding issues have been discussed
with the developer. He illustrated the revised site plan.
Commissioner Sommer initiated discussion regarding the difference between the
appraised price and the proposed purchase price. Mr. Ken Doresky, Community
Development Specialist, commented that the appraisal did not take into
consideration the property’s limitations as mandated by the MPCA.
President Enck objected to the city bearing the costs for monitoring and mitigation
plans related to the contaminated soil cleanup. He noted Electronic Industries
should be obligated to pay as they caused the contamination.
Mr. Dan Donahue, City Manager, explained that staff would clarify this issue.
Mr. John Seibert, JCS Development, was recognized. He noted it would likely take
four months to close on the property and three months to complete construction.
Mr. McDonald recommended that a shared parking arrangement be explored at the
site between JCS Development and the Sunshine Factory Restaurant.
EDA Minutes June 23, 2003
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The EDA expressed support for the joint development proposal, and directed staff
to pursue a purchase agreement.
IMP. PROJECT 749 President Enck introduced for discussion Item 5, Discussion Regarding
Item 5 Development Proposal for City-Owned Property at 5501 Boone Avenue North and
Direction to Proceed (Improvement Project No. 749).
Mr. Kirk McDonald, Director of Community Development, indicated staff is
requesting EDA discussion and direction to proceed regarding a development
proposal from Project for Pride in Living (PPL), for the city-owned site at 5501
Boone Avenue North. The proposal is for the construction of a 70-unit residential
building split between owner-occupied condominiums and affordable rental units.
He expressed support for the proposal based on the following reasons: the proposal
utilizes the entire site, meets the CDBG eligibility requirements, provides potential
extra off-street parking for North Ridge Care Center, replaces some existing rental
units in the city which will be lost due to redevelopment efforts, and pays the city
market value for the property, less soil correction costs.
The EDA expressed concern with combining owner-occupied units with rental
units, and questioned whether PPL would provide assurance that at least 50% of the
units would be owner occupied.
Mr. Chris Wilson, Project for Pride in Living, was recognized. He stated 50% of the
units would be owner-occupied and covered by a separate homeowners association.
He noted PPL is undertaking a marketing study to determine the market for the
proposed owner and rental units.
The EDA held a brief discussion regarding the soils. Mr. Wilson noted his intention
of installing pilings and underground parking.
The EDA expressed support for the proposed project at 5501 Boone Avenue North,
and directed staff to continue coordination regarding the potential redevelopment of
the property.
IMP. PROJECT 734 President Enck introduced for discussion Item 6, Discussion Regarding
Item 6 Development Proposal for City-Owned Property at 4317 Nevada Avenue North and
Private Property at 4301 Nevada Avenue North (Improvement Project No. 734).
Mr. Kirk McDonald, Director of Community Development, requested EDA
discussion and direction regarding a development proposal submitted by Master
Civil & Construction Engineering for the city-owned site at 4317 Nevada Avenue
North and the private property at 4301 Nevada Avenue North. The development
proposal is for the replacement of two existing single-family homes with twelve
units of market-rate townhomes. The developer is also desirous of acquiring 4415
Nevada Avenue North (the property to the north) for the construction of six
additional units.
Following discussion, the EDA declined pursuing the proposal due to the city
assistance requested and the proposed density. The EDA indicated support for a
lower density project at the location without city financial assistance.
BROOKSTONE, INC. President Enck introduced for discussion Item 7, Motion Acknowledging Expiration
Item 7 of Letter of Intent with Brookstone, Inc. and Agreement to Continue Coordination
on Informal Basis for the redevelopment of the city center area.
Mayor Enck reported that Brahm Akradi, co-owner of New Hope Mall, has agreed
to serve on the City Center Task Force as Robert Rappaport’s replacement (owner
of Winnetka Center).
EDA Minutes June 23, 2003
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The EDA expressed support to continue coordination on an informal basis with
Brookstone, Inc. for the redevelopment of the city center area.
ADJOURNMENT
Motion was made by Commissioner Sommer, seconded by Commissioner Gwin-
to adjourn the meeting
Lenth, . All present voted in favor. Motion carried. The
New Hope EDA adjourned at 9:50 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Minutes June 23, 2003
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