010906 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes January 9, 2006
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 9:06 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
Shari French, Director of Parks & Recreation
Kim Green, Community Development Assistant
Curtis Jacobsen, Community Development Specialist
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 Nolte, seconded by President Opem, to
approve the Regular Meeting Minutes of November 28, 2005. All present
voted in favor. Motion carried.
IMP. PROJECT 795
President Opem introduced for discussion Item 4, Resolution authorizing an
Item 4
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 58 Avenue) (improvement project no. 795).
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Mr. Kirk McDonald, director of community development, stated the interim
agreement was previously presented to the city council at its work session of
December 19, 2005, at which time the Council supported and tentatively
approved the cost sharing agreement but requested more specific information
about the cost of Krass Monroe’s services. He reported that Krass Monroe has
re-evaluated their original estimate of $10,000 to $20,000 and revised it to an
estimate of $15,000. He outlined the 50/50 cost sharing arrangement and noted
the soil boring cost has increased from $3,200 to $3,500 as the developer had
determined that a boring of a greater depth was needed on the northern
portion of the site. Other costs include phase I environmental assessment for
$1,700, structural/TIF blight analysis for $9,000, boundary and topographical
survey and golf course topo survey $5,000. The city and the developer will
each pay its own consulting fees with the exception of the 50/50 cost sharing
EDA Meeting January 9, 2006
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arrangements for the financial consultant (Krass Monroe).
Mr. McDonald reported that the soil borings, environmental assessment,
structural analysis and site survey were in process.
Mr. McDonald stated the interim agreement contains four main parts: Part 1
describes the interim nature of the agreement; Part 2 identifies the
undertakings of the redeveloper and associated completion dates; Part 3
describes the undertakings of the city; and Part 4 describes the redeveloper
deposit and cost sharing approach. It was tentatively agreed between the city
and the redeveloper that the preliminary costs would be shared 50/50. He
stated if additional costs are identified, staff will present the costs to the
Council for approval.
Mr. McDonald reported that planning for the Bass Lake Road improvements
is underway, and the EDA previously authorized a preliminary site survey to
help define the site size and shape. He stated the city engineer will soon be
seeking authorization to conduct a feasibility report for Bass Lake Road
improvements. Mr. McDonald reported that the developer is in attendance
and is prepared to pay the $5,500 fee deposit if the EDA approves the
agreement.
President Opem directed staff to determine the sewer and water main
capacity improvements at the time of the survey.
At Commissioner Sommer’s request, staff was directed to add “not to exceed”
to the financial consultant’s $15,000 cost estimate. Commissioner Sommer also
asked the minutes to reflect the fact that the city formed a partnership with
the developer, but if the project does not materialize the city will own the site
results of the services performed. Mr. McDonald concurred and commented
that this issue is covered in section 5 of the interim agreement.
Mr. McDonald indicated PariPassu has invited the EDA on a tour of condo
buildings on either January 28 or February 4. The intent is to obtain feedback
from the EDA regarding such items as building materials and interior/exterior
finishes before the developer completes an elevation plan for the Bass Lake
Road Apartments redevelopment project. The EDA selected January 28 at 9:00
a.m. for the tour.
Mr. Jonathan Lockart of PariPassu was recognized. He explained it may take
up to an hour per site so the EDA should expect to spend five to six hours on
the tour. He also assured the EDA that PariPassu is mindful of the financial
consultant costs previously cited.
EDA RESOLUTION
Commissioner Gwin-Lenth introduced the following resolution and moved
06-01 its adoption: “RESOLUTION AUTHORIZING AN INTERIM
Item 4 AGREEMENT WITH PARIPASSU/TRIO DEVELOPMENT FOR THE BASS
LAKE ROAD APARTMENTS REDEVELOPMENT PROJECT (8400 AND
8420 BASS LAKE ROAD AND 8401, 8411, AND 8421 58 AVENUE)
TH
(IMPROVEMENT PROJECT NO. 795).” The motion for the adoption of the
EDA Meeting January 9, 2006
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foregoing resolution was seconded by President Opem, and upon vote being
taken thereon, the following voted in favor thereof: Opem, Gwin-Lenth,
Hoffe, Sommer, Nolte; and the following voted against the same:; 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.
NORTHWESTERN
President Opem introduced for discussion Item 5, Discussion of Northwestern
CASKET COMPANY
Casket Company’s request for financial assistance from the city.
Item 5
Mr. Kirk McDonald, director of community development, indicated
Northwestern Casket Company is in the process of relocating from
Minneapolis to New Hope and is requesting financial assistance towards the
relocation expenses. He explained that past practice has been that all requests
for assistance are presented to the Council or EDA for consideration. The
Council and EDA have provided assistance to businesses in the past on a case-
by-case basis if the use meets city policies. The company is seeking $125,000
for moving expenses and equipping their tenant space at 4300 Quebec Avenue
North. Mr. McDonald explained that staff researched assistance options, but
the state does not provide assistance unless there is an increase in the total
number of jobs (the company has 28 employees which will remain
unchanged). He further explained that New Hope’s business subsidy policy’s
objective 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. Mr. McDonald
stated staff is pleased to see a new business in New Hope but does not believe
the request meets the business subsidy policy.
The EDA welcomed the business to New Hope but unanimously concluded
that the business does not meet the business subsidy criteria.
Commissioner Nolte commented that the company should experience a
savings in insurance premiums by relocating from Minneapolis to New Hope.
ADJOURNMENT
Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
Nolte, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 9:30 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting January 9, 2006
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