Ed112403.docCITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes November 24, 2003
Regular Meeting City Hall
CALL TO ORDER
President Enck called the meeting of the Economic Development Authority to order
at 8:02 p.m.
ROLL CALL
Present: W. Peter Enck, President
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
Absent: Sharon Cassen, Commissioner
Don Collier, Commissioner
APPROVE MINUTES
Motion was made by Commissioner Sommer, seconded by Commissioner Gwin-
to approve the Regular Meeting Minutes of November 10, 2003
Lenth, . All
present voted in favor. Motion carried.
PUBLIC HEARING President Enck introduced for discussion Item 4, Public Hearing - Resolution
IMP. PROJECT 665 approving purchase agreements with JCS Development Inc. and Frey Development
nd
Item 4 Inc. for sale of 7500-7528 42 Avenue North property (improvement project no.
665).
Mr. Kirk McDonald, Director of Community Development, expressed his pleasure
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regarding the planned commercial redevelopment of the 42 and Quebec Avenue
property. He attributed the success of the redevelopment and soil contamination
clean-up to staff member, Ken Doresky, who was responsible for securing two
recent grants. Mr. McDonald acknowledged the presence of Douglas Bergstrom,
environmental consultant of Diversified Environmental, Inc., who is available to
answer questions from the EDA.
Mr. Ken Doresky, Community Development Specialist, stated items 4, 5, and 6 all
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relate to the 7500-7528 42 Avenue North property. He indicated the proposed
purchase price is $380,000 (Culver’s Restaurant); and $130,000 (office
condominiums); for a total of $510,000.
In addition to the purchase price, the developers have agreed to contribute $47,100
for regional storm water improvements based on the estimate prepared by the City
Engineer. The storm water fee is separate from the purchase price and will be
included in the development agreement. Also, the city’s not paying any realtor fee
in conjunction with the sale of the property. On June 23, the Council approved
Ordinance 03-13, an ordinance establishing a park dedication requirement and/or
cash payment in lieu of land dedication. At the time the ordinance was adopted,
staff recommended and the Council agreed that the newly created fee would not be
applicable to developments currently in process, including this project and
Woodbridge Senior Cooperative, Plymouth Heights Pet Hospital and St. Joseph
Catholic Church.
New Hope EDA November 24, 2003
Page 1
The following three items are being presented for EDA consideration at tonight’s
meeting:
1. Purchase Agreements: Purchase agreements have been submitted from both
Culver’s Restaurant and Frey Development (Office Condominiums). The City
Attorney will prepare a development agreement for the site for consideration at
a later date. Finally, the city will close on the property after planning and
zoning approvals (expected during the winter).
2. Restrictive Covenant: The Covenant, prepared by the City Attorney and
approved by the Minnesota Pollution Control Agency (MPCA), restricts use of
the property and imposes maintenance and reporting requirements. Any buyer
would be required to adhere to the Restrictive Covenant. The MPCA continues
to exercise control over this property. Therefore, the MPCA is requiring the
City to record a Declaration of Covenants against this property prior to its sale
for redevelopment purposes.
3. Environmental Monitoring Proposal: Diversified Environmental, the city’s
environmental consultant, has submitted a proposal to oversee the final
environmental responsibilities prior to project completion. Many activities are
required by the MPCA and are outlined within the Restrictive Covenant to
ensure proper redevelopment of the site. Diversified Environmental has been
assisting the city with this site since the contamination was originally
discovered in 1984.
Mr. Doresky indicated the closing will occur following planning and zoning
approvals. He illustrated revised site plans and renderings of Culver’s and the office
condominiums. He reported that construction will start in the spring.
Mr. Doresky explained the on-site monitoring that will be conducted by the
Minnesota Pollution Control Agency (MPCA). The MPCA also requires preparation
of a contingency plan for continued monitoring during construction and the disposal
of any contaminated materials removed during construction. There will be certain
restrictions for the site that are documented within the Declaration of Covenants. He
also noted the requirement for a subsurface vapor collection system for permanent
structures at the property.
Commissioner Gwin-Lenth questioned whether extra care is required for installation
of such items as fencing and plantings.
Mr. Doresky reported that the site plan must be approved by the MPCA. Any
modifications (or tree replacements) may require re-approval.
CLOSE HEARING Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
to close the public hearing
Item 4 Sommer, . All present voted in favor. Motion carried.
EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption
03-10 “RESOLUTION APPROVING PURCHASE AGREEMENTS WITH JCS
Item 4 DEVELOPMENT INC. AND FREY DEVELOPMENT INC. FOR SALE OF
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7500-7528 42 AVENUE NORTH PROPERTY (IMPROVEMENT
PROJECT NO. 665)”.
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: Enck, Gwin-Lenth, Sommer; and the
following voted against the same: None; Abstained: None; Absent: Cassen, Collier;
whereupon the resolution was declared duly passed and adopted, signed by the
president which was attested to by the executive director.
New Hope EDA November 24, 2003
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IMP. PROJECT 665 President Enck introduced for discussion Item 5, Resolution approving declaration
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Item 5 of covenants for 7500-7528 42 Avenue North (improvement project no. 665).
EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption
03-11 “RESOLUTION APPROVING DECLARATION OF COVENANTS FOR
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Item 5 7500-7528 42 AVENUE NORTH (IMPROVEMENT PROJECT NO. 665).”
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: Enck, Gwin-Lenth, Sommer; and the following voted against the
same: None; Abstained: None; Absent: Cassen, Collier; whereupon the resolution
was declared duly passed and adopted, signed by the president which was attested to
by the executive director.
IMP. PROJECT 665 President Enck introduced for discussion Item 6, Resolution approving
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Item 6 environmental monitoring proposal for 7500-7528 42 Avenue North property
(improvement project no. 665).
EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption
03-12 “RESOLUTION APPROVING ENVIRONMENTAL MONITORING
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Item 6 PROPOSAL FOR 7500-7528 42 AVENUE NORTH PROPERTY
(IMPROVEMENT PROJECT NO. 665).”
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: Enck, Gwin-Lenth,
Sommer; and the following voted against the same: None; Abstained: None;
Absent: Cassen, Collier; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive director.
IMP. PROJECT 756 President Enck introduced for discussion Item 7, Resolution approving purchase
Item 7 agreement and relocation benefits for 7601 Bass Lake Road (improvement project
no. 756).
Mr. Ken Doresky, Community Development Specialist, reported the purchase
agreement is based on the property’s appraised value of $220,000 and the relocation
benefits are estimated at $22,520. He stated Krass Monroe, the city’s financial
consultant, as well as the city attorney, recommend that the EDA (rather than the
City Council) consider acquisitions of this type.
Mr. Doresky stated as directed by the council at its meeting of November 3, 2003,
staff will coordinate with Evergreen Land Services for payment of relocation
benefits to all remaining sellers in the East Winnetka Livable Communities Area.
The city’s purchase offer will consist of the appraised value and a relocation
payment determined by the city’s relocation consultant. The relocation estimate of
$22,520 for the 7601 Bass Lake Road property will be adjusted when the property
owner moves and completes the purchase of another property.
Commissioner Gwin-Lenth questioned the computation of relocation benefits.
Mr. Steve Sondrall, City Attorney, explained that the relocation benefits differ
between commercial and residential properties. For residential properties, the city
must pay actual relocation expenses (moving expenses and closing expenses). He
reported a differential payment may be required if the acquired property is worth
more than comparable properties.
President Enck asked Mr. Doresky to report on the letters that the city mailed to
remaining property owners in the area that are not city-owned properties.
New Hope EDA November 24, 2003
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Mr. Doresky stated letters were sent today requesting that property owners consider
an offer by the city based on an appraised value and relocation benefits. The
appraisals should be completed by the end of December.
EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption
03-13 “RESOLUTION APPROVING PURCHASE AGREEMENT AND
Item 7 RELOCATIONBENEFITS FOR 7601 BASS LAKE ROAD
(IMPROVEMENT PROJECT NO. 756).”
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: Enck, Gwin-Lenth,
Sommer; and the following voted against the same: None; Abstained: None;
Absent: Cassen, Collier; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive director.
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 8:29 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA November 24, 2003
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