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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 nd 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 nd 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 ND 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 Page 2 IMP. PROJECT 665 President Enck introduced for discussion Item 5, Resolution approving declaration nd 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 ND 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 nd 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 ND 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 Page 3 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 Page 4