050806 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes May 8, 2006
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 8:38 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
Kim Green, Community Development Assistant
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 Sommer, seconded by Commissioner
Nolte, to approve the Regular Meeting Minutes of April 24, 2006. All present
voted in favor. Motion carried.
IMP. PROJECT 795
President Opem introduced for discussion Item 4, Resolution authorizing a
Item 4
third amendment to the interim agreement between the Economic
Development Authority in and for the city of New Hope and PariPassu
Development for the redevelopment of the Bass Lake Road Apartments site,
which increases the budget for fees for Krass Monroe, P.A. (improvement
project no. 795)
President Opem indicated the original agreement capped the financial
consultant expenses at $15,000 to be split 50/50 between the city and the
developer. He stated the amendment would authorize an additional $10,000
($5,000 for each party).
Commissioners Nolte and Hoffe expressed disappointment that the EDA was
not informed of the financial consultant expenditures on March 27 at which
time the EDA authorized the extension of the interim agreement with
PariPassu. Mr. Kirk McDonald, director of community development, pointed
out that staff was not aware that the funds were depleted until receipt of the
April invoice. He explained that the initial agreement called for $25,000 for
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Page 1May 8, 2006
financial expenses but was reduced to $15,000, and covered six months of
financial consultant expenses. He emphasized the necessity of additional
financial analyses and noted the city is fortunate to have negotiated a 50/50
cost share arrangement with the developer.
Mr. McDonald stated staff is optimistic that the project will be feasible, but the
financial consultant needs to perform additional financial analysis. He stated
Krass Monroe has been working with PariPassu to revise its pro forma to
reduce the gap.
Commissioner Sommer noted that if PariPassu cannot make the project work,
the city will own the information and can provide it to other prospective
developers.
President Opem commented that an additional $5,000 does not appear to be
an unreasonable request.
EDA RESOLUTION
Commissioner Sommer introduced the following resolution and moved its
06-04 adoption: “RESOLUTION AUTHORIZING A THIRD AMENDMENT TO
Item 4 THE INTERIM AGREEMENT BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE
AND PARIPASSU DEVELOPMENT FOR THE REDEVELOPMENT OF
THE BASS LAKE ROAD APARTMENTS SITE, WHICH INCREASES THE
BUDGET FOR FEES FOR KRASS MONROE, P.A. (IMPROVEMENT
PROJECT NO. 795).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Nolte, and upon vote being taken thereon,
the following voted in favor thereof: Opem, Gwin-Lenth, Hoffe, Nolte,
Sommer; and the following voted against the same: None; 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.
ADJOURNMENT
Motion was made by Commissioner Nolte, seconded by Commissioner Gwin-
Lenth, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:44 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting
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