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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). th 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 Page 1 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 Page 2 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 Page 3