Economic Development Report 2018ECONOMIC DEVELOPMENT REPORT
CITY OF NEW HOPE, MINNESOTA
SEPTEMBER 1, 2018
The city of New Hope Economic Development Report highlights redevelopment projects
throughout the city from the previous year and the tools that are in place to promote
development activity. The city’s Economic Development Authority promotes and facilitates
business development and housing redevelopment activities.
OVERVIEW & HISTORY
CITY OF NEW HOPE OVERVIEW & HISTORY
LOCATION
The city of New Hope is a suburb located northwest
of Minneapolis with strong neighborhoods, an
abundance of parks and recreational opportunities,
excellent schools, and great shopping nearby. The
city has easy access to the entire Twin Cities area
with major arterials of Highway 169, Highway 100,
Interstate 694, and Interstate 394 all nearby.
POPULATION (2010 CENSUS)SIZE/AREA YEAR FORMED
20,339 5.1 square miles 1953
BUSINESSES JOBS SHOPPING CENTERS
480 11,080 5
SCHOOL DISTRICT SCHOOLS PARKS/ACREAGE
Robbinsdale Area (281)5 18/200
HISTORY
In the early 1900s, New Hope was a farming-rich
community. The area was settled as part of Crystal
Lake Township and became the home for many
family farms. As housing developments spread west
from Minneapolis in the 1930s, the residents of Crystal Lake Township began the movement to
incorporate the township. In 1936, the city of Crystal was incorporated. Forming a city, though,
was not supported by all residents in the township. The rural residents in the western half of
the township broke away from the city of Crystal and formed their own township. The resistant
residents, mostly farmers, were unhappy about paying taxes for projects such as street lighting
and sanitary sewer. The name the farmers selected for their new township was a reflection of
the time, New Hope.
Many residents along the New Hope-Crystal border formed groups and requested to be
annexed by Crystal in order to receive what were the most modern city services at the time.
Others, however, were happy to be part of New Hope township and remained separate from
Crystal. Therefore, pockets of New Hope residents were created along the eastern boundary.
By the early 1950s, the rapidly developing township of New Hope chose the fate it had eluded
just over 15 years earlier. In 1953, New Hope incorporated as a city to prevent losing more of
its land and residents to Crystal via annexation. This move was again opposed by the farming
community of New Hope, but housing developments between 1936 and 1953 had made farmers
a minority in New Hope.
When the township was incorporated, it had 600 residents. The city grew rapidly and was home
to over 2,500 people by 1958. This rapid population growth continued through the 1960s, and by
1971, there were 24,000 residents in New Hope. The population of the community has declined
slightly since 1971.
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SUMMARY OF ACTIVITY
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
The city of New Hope’s Economic Development Authority (EDA) promotes and facilitates business
development activities. It considers proposals on a case-by-case basis and utilizes a broad base of public
financing options. Membership of the EDA is identical to that of the New Hope City Council. Council members
are appointed to the commission for terms concurrent with the City Council terms and the mayor acts as
president of the authority. The city manager serves as the executive director. The city employs various
resources to help businesses grow and reach their goals.
BUSINESSES & ASSISTANCE PROGRAMS
Local commercial and industrial businesses are extremely important to the city. The City Council has
undertaken programs and initiatives to address both commercial and industrial properties. These programs
focus on:
• Retaining existing businesses.
• Assisting with expansions.
• Attracting new businesses to vacant available buildings.
• Attracting new construction to a limited number of available vacant sites.
• Improving communication with businesses and responding more effectively to business concerns and
inquiries.
BUSINESS SUBSIDY PROGRAM
The city’s Business Subsidy Program addresses policies related to the use of Tax Increment Financing (TIF),
tax abatement, and other business assistance programs for private development. It serves as a guide
in reviewing applications requesting business assistance. All projects must meet mandatory minimum
approval criteria and the level of assistance is evaluated on a case-by-case basis. Assistance can cover
project costs as allowed for under Minnesota Statutes. The EDA considers using a business assistance tool
to assist private developments in circumstances in which the proposed private project meets one of the
following uses:
• Provides a diversity of housing not currently provided by the private market.
• Provides a variety of housing ownership alternatives and housing choices.
• Promotes affordable housing for low- or moderate-income individuals.
• Promotes neighborhood stabilization and revitalization by the removal of blight and the upgrading in
existing housing stock in residential areas.
• Removes blight and encourages redevelopment in the commercial and industrial areas of the city
in order to encourage high levels of property maintenance and private reinvestment in those areas;
including façade improvement.
• Increases the tax base of the city to ensure the long-term ability of the city to provide adequate services
for its residents, while lessening the reliance on residential property tax.
• Retains local jobs, increases the local job base, and provides diversity in that job base.
• Increases the local business and industrial market potential of the city.
• Encourages additional unsubsidized private development in the area, either directly or through
secondary “spinoff” development.
• Offsets increased costs of redevelopment over and above the costs that a developer would incur in
normal development.
• Accelerates the development process and achieves development on sites that would not be developed
without this assistance.
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CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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LOAN PROGRAMS
The city has partnered with the Lending Center at the Center for
Energy and Environment (CEE) to offer a convenient one-stop service
that provides commercial and non-profit property owners in New Hope
access to a comprehensive array of financing and rehabilitation services.
The CEE Loan Program provides financing to New Hope businesses making cost-effective, energy efficiency
improvements. Nonprofit organizations that are interested in reducing their energy costs are eligible to
apply for funds through the CEE to help finance energy-efficient projects implemented in properties owned
and/or occupied by nonprofit entities.
OUTSTANDING BUSINESS AWARD PROGRAM
The city’s Outstanding Business Award Program was initiated in 2006 to recognize the city’s businesses’
contributions to the local community. The purpose of the award program is to recognize businesses for
noteworthy accomplishments such as expanding or improving a building or property, creating new jobs for
New Hope residents, reaching a milestone year in business, or providing outstanding community service.
Nominations are accepted quarterly for the award.
BUSINESS NETWORKING GROUP
The New Hope Business Networking Group was started by New Hope business owners in 2010 to create an
open forum for networking within the city. The group is open and free to all New Hope business owners.
The Business Networking Group meets regularly at one of the participating businesses. The city is also a
long-time member of the TwinWest Chamber of Commerce.
OPEN TO BUSINESS
The city has partnered with Hennepin County and Open to Business,
a company that provides free business advice and gap financing.
Open to Business is a partnership between Golden Valley, New Hope,
and the Metropolitan Consortium of Community Developers (MCCD),
an association of nonprofit community development organizations
serving the Twin Cities. With the help of a matching grant from
Hennepin County, the two cities work with MCCD to provide business
consultation services and financial advice to small local business
owners and aspiring business owners. MCCD staff hold open office
hours every other month at New Hope City Hall. The program offers help in several areas, including:
• Business plan assistance.
• Financial management.
• Bookkeeping set-up and training.
• Loan packaging.
• Real estate analysis.
• Marketing assistance.
• Strategic planning.
• Professional referrals.
Open to Business facilitated one loan of $105,000 and one credit building loan of $240 in 2013, one credit
building loan of $240 in 2014, one direct loan of $12,035 in 2016, and two direct loans of $100,000 and
$25,000 leveraging over $1,000,000 in outside capital in 2017.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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EMPLOYMENT
There are approximately 480 commercial/industrial/service businesses in the city, 31 of which opened in
2016 and 26 of which opened in 2017. These businesses account for 10,360 jobs in the city. The city’s 15
largest employers, which are listed as follows, account for nearly 4,700 of those jobs.
MAJOR EMPLOYERS
Employer Products/Services New Hope Based Employees
(Total Employees)
Independent School District 281 Education 791 (1,852)
Hy-Vee Grocery & convenience store 632
Minnesota Masonic Home/
North Ridge Care Center Skilled nursing care facility 560
St. Therese Home of New Hope Skilled nursing care facility 544 (1,117)
Horwitz Mechanical contractor 345
Perrigo Company Pharmaceutical & medicine
manufacturing 290
Intermediate District 287 Education 266 (943)
Coborn’s Delivers Direct selling establishments 240
Liberty Diversified International Stationery supplies 200
Parker - Hannifin Oildyne Division Hydraulic component production 172
Dakota Growers Pasta Company Macaroni & spaghetti 159
Waymouth Farms, Inc.Salted & roasted nuts & seeds 150
Good Samaritan Society Skilled nursing care facility 136
Avtec Warehousing & metal finishing 102
Benjamin Franklin/
Blue Ox Heating & Air Plumbing/mechanical contractor 95
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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PLANNING & DEVELOPMENT
The city continues to see sustained growth and development as major redevelopment projects come to
fruition. Overall development activity has increased annually since 2012 and the city anticipates that growth
will remain steady over the next several years.
DEVELOPMENT ACTIVITY
From 2013-2017, $193,484,044 of reinvestment was approved in the city through construction permits. The
city is striving to increase momentum to continually increase the tax base, while regularly providing the
highest level of services delivered to residents, businesses, and property owners of the city. The city set a
goal of increasing the total valuation of work for permits from 2013-2015 ($83,848,030) by 10% for 2016-
2018. Total valuation of work completed in city between 2016 and 2017 (2 years) was $109,636,014, which
represents a 30.76% increase in total valuation of work between 2013 and 2015 (3 years).
DEVELOPMENT ACTIVITY BY YEAR
2013 2014 2015 2016 2017
Permits issued 2,212 2,141 2,169 2,607 2,652
Fees collected $356,242 $485,371 $512,461 $602,391 $867,289
Valuation of work $17,069,459 $32,802,509 $33,976,062 $37,740,765 $71,895,249
VALUATION OF WORK
2013 2014 2015 2016 2017
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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The following planning and development activities occurred in the last year:
Ironwood (under construction)
Alatus, LLC is constructing a four-story, 182-unit
luxury apartment building on the site previously
owned by the city, adjacent to the New Hope Village
Golf Course. The city completed a market feasibility
study in the spring of 2015 to determine what type
of redevelopment was best suited for the site and
concluded that luxury apartments were the most
viable option.
The final plat and vacation of easements for the
project were approved in February 2017 and
construction of the $43 million building began in the summer of 2017. It is expected that the building will
be completed in late 2018. Amenities include a pool deck with lounge chaises and grilling stations, an
indoor/outdoor entertainment suite with rooftop grill, work-from-home spaces, create space/do-it-yourself
workshops, panoramic views of the New Hope Village Golf Course, a 24/7 fitness center, studio, an indoor
sauna, a resident coffee bar, and a pet spa. The city and developer negotiated a city-provided loan that will
assist in adding a high-efficiency HVAC system, which will help the building achieve LEED Certification and
result in no carbon footprint for the entire building.
The city created a redevelopment Tax Increment Financing (TIF) District in conjunction with the project
that authorized the expenditures for land/building acquisition, site improvements and preparation,
utilities, administrative costs, and other qualifying improvements. In 2007, the city purchased five, 12-unit
buildings. With land acquisition, relocation costs, and demolition, the city invested nearly $2.2 million into
the project. In 2017, the city sold the property to Alatus, LLC to facilitate the construction of the building for
$1.443 million. The TIF District allows the city to recoup the land write-down costs and administrative fees
associated with the development.
Good Samaritan (under construction)
Good Samaritan is expanding its campus in New
Hope with the construction of a three-story, 31-unit
assisted living facility. Construction on the building,
which is located at 2765 Virginia Avenue North,
began in October 2017 and will be completed in
the fall of 2018.
Residents of the new $4.4 million
facility will live on-site full time; however, the
individual units will not include full kitchen facilities.
There will be separate areas for dining, bathing,
exercise, nursing care, activities, and administrative services. The current operations of Good Samaritan are
conducted in a facility that has 77 beds and includes skilled care and rehabilitation services. The addition
will be connected to the campus by an enclosed walkway.
Good Samaritan acquired two parcels to the north of the property in 2012, where the assisted living
facility is being constructed. The building connection and site layout created the need for special zoning
considerations and the property was rezoned to Planned Unit Development (PUD) to allow flexibility to
accommodate the project. The city created a housing Tax Increment Financing (TIF) District in conjunction
with the project that authorized the expenditures for site improvements and preparation, utilities,
administrative costs, and other qualifying improvements. The TIF district facilitates the construction of the
assisted living facility.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Police Department & City Hall (under construction)
A new police department and city hall for the city of
New Hope is under construction. The City Council
approved a bid from Terra General Contractors for
$14.78 million in December of 2017 for the new
building. The sale of $18.435 in general obligation
capital improvement plan bonds at the interest rate
of 2.6339% was also approved to pay for project.
The city began working with a consultant in 2013
to review the space needs of the police department
and city hall, identify deficiencies of the existing
building, and determine if an updated and expanded
or new police station and city hall facility was needed. In September 2015, a space needs citizen’s task
force recommended that a new police station and city hall be constructed to replace the existing facility.
The task force evaluated several potential sites for the building and considered soil boring information.
In September 2016, the task force recommended that the new municipal building be constructed on the
civic center site where the existing swimming pool is located, due to the fact that the pool also needs to be
replaced. In January 2017, the city entered into a five-phase contract for design and construction services
with Wold Architects and Engineers for the new police station and city hall. In August 2017, the City Council
approved design development phase plans and authorized Wold to proceed to the next phase of the
design process – the preparation of construction documents. A ground breaking for the building took place
on January 5, 2018, and it anticipated that the building will be completed in July of 2019.
The pool that was previously located where the new police department and city hall is being constructed
was demolished and will be reconstructed in the area of the current city hall. In June 2018, the City Council
voted on a preferred pool concept and entered into an agreement with Stantec Engineering to provide
the final planning and design. The preferred pool concept includes a current channel, two body slides, a
shallow water area, and a 50-meter, 8-lane pool with diving boards. The original concept had a 25-yard
pool, however during the 2018 legislative session; the city received $2 million in order to expand the 25-
yard pool concept to 50-meters. City staff and Stantec Engineering are finalizing the concepts and will begin
the design process shortly thereafter. Construction on the pool is expected to begin in August of 2019 with
a June of 2020 opening.
Parkview (completed)
Parkview is a 60-unit housing development at 55th
and Winnetka avenues completed by Centra Homes
in 2017. The city purchased the 17-acre site in 2013
with a goal of diversifying available housing stock in
the city. The residential subdivision consists of 29
single-family homes and 31 detached townhomes.
The homes sold-out faster than expected for higher
than anticipated prices. The two-story, single-family
homes sold for an average price of $378,934,
ranging between $314,178 and $438,676. The single-
family homes range from 2,585 to 3,990-square feet,
and include a variety of models and floor plans.
Each model includes a two-car garage, with several
models offering an option for a three-car garage.
The detached townhomes sold for an average price
of $309,706, ranging between $273,995 and
$334,777. The detached townhomes range from 1,974 to 2,128-square feet and are association-maintained.
There are four standard models, all of which include a full basement and space for a 12-foot deep deck or
patio.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Northwest Church of Christ (under construction)
A 5,400-square foot expansion is underway at the
Northwest Church of Christ campus, located at
8624 50th Avenue North. The $1,495,000 addition
includes a new assembly hall that will help
accommodate the need for additional space for a
growing congregation. The church purchased the
adjacent parcel to the north of the property that
contained a single-family home, which was razed
in preparation for the expansion.
Winnetka Storage (under construction)
The previously vacant industrial building at 3216
Winnetka Avenue North is being converted into a
self-storage facility. The $3,7580,000 project
includes a 23,000-square foot addition to the
second floor at the southwest corner of the
building. Building improvements include several
exterior modifications and improvements, including
the second floor addition, fresh paint on the
existing building, new roofing, additional windows,
parking area improvements, and the construction of an outdoor storage area.
McDonald’s (under construction)
McDonald’s, located at 4201 Winnetka Avenue
North, is undergoing a $450,000 renovation project.
Improvements include modernizing the building’s
facade, reconfiguring the site to accommodate a
tandem drive-thru lane, new signage, and
improvements to interior restaurant areas. The
project will be completed in the fall of 2018.
VIP Auto (approved)
A 5,060-square foot gas station and 3,780-square
foot car wash has been approved for construction
at 7201 Bass Lake Road, the site of a previously
underutilized retail building. The development will
include several environmentally conscious
improvements, including a stormwater collection
system that retains all rainwater onsite and re-uses
it for the car wash. A filtration system will recycle
and reuse water that is used by the car wash. The
gas station canopy will feature an integrated solar
panel roof system that will supply approximately
50% of the electricity required to operate the
convenience store. It is anticipated that demolition
of the existing building will take place in the fall of 2018 with construction to begin shortly thereafter.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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HOUSING
LOAN PROGRAMS
The city has partnered with the Lending Center at the Center for Energy and Environment (CEE) to
offer a convenient one-stop service that provides residential property owners in New Hope access to a
comprehensive array of financing and rehabilitation services. The Home Improvement Loan Program
encourages and supports the preservation of existing housing by providing loans to improve the basic
livability and/or energy-efficiency of the borrower’s home. The Low Interest Loan Program, Unsecured Loan
Program, and Interest Subsidy Program provide loans and funds to homeowners to make improvements
to their properties. An Emergency Deferred Loan is also available for homeowners that have emergency
improvement needs but do not qualify for other home improvement loan or grant programs. The following
loans/subsidies/leveraged funds have been issued since 2013:
2013 2014 2015 2016 2017
Loans/Subsidies/
Leveraged Funds 3 7 4 5 9
Amount $13,090 $99,487 $40,693 $46,096 $78,682
SCATTERED SITE HOUSING
Over the years, the city has utilized its Economic Development Authority (EDA) to acquire several properties
as part of the Scattered Site Housing Program. The primary focus of the program is to target distressed
single-family properties throughout the city, with the goal of improving residential neighborhoods. The
program currently emphasizes two primary activities, demolition, and rehabilitation. When homes are
demolished, the vacant lot is sold to a builder for the construction of a new single-family home. Homes
that are rehabilitated are sold on the open market with no income restrictions. The following scattered site
housing projects were completed over the last year:
Address Previously
Assessed Value
Sale Price/
New Value Percent Increase Project Type
3751 Louisiana Ave N $147,000 $380,000 158%Demolition
6067 Louisiana Ave N $92,000 $324,000 252%Demolition
3984 Zealand Ave N $187,000 $295,000 58%Rehabilitation
5400 Yukon Avenue $113,000 $297,000 163%Demolition
In addition to the projects listed above, there are seven additional scattered site projects that were
underway as of when this report was published.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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SCATTERED SITE HOUSING PROJECTS
3751 Louisiana Ave N 6067 Louisiana Ave N 3984 Zealand Ave N 5400 Yukon Avenue
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Previously Assessed Value Sale Price/New Value
3751 Louisiana Ave N - Before 3751 Louisiana Ave N - After
3984 Zealand Ave N - Before 3984 Zealand Ave N - After
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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PROPERTY VALUES
2013 2014 2015 2016 2017
Taxable market
value $1,235,267,314 $1,334,517,728 $1,430,939,117 $1,535,054,114 $1,697,092,365
Percent change 0.93%8.03%7.23%7.28%10.56%
PROPERTY VALUES
2013 2014 2015 2016 2017
$250,000,000
$500,000,000
$750,000,000
$1,000,000,000
$1,250,000,000
$1,500,000,000
$1,750,000,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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MEDIAN HOUSEHOLD VALUES
2013 2014 2015 2016 2017
Median
Household Value $168,000 $180,000 $188,500 $196,000 $213,000
Percent change 2.44%7.14%4.72%3.98%8.67%
HOUSEHOLD VALUE
2013 2014 2015 2016 2017
$30,000
$60,000
$90,000
$120,000
$150,000
$180,000
$210,000