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102306 EDA CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes October 23, 2006 Regular Meeting City Hall CALL TO ORDER President Opem called the meeting of the Economic Development Authority to order at 8:55 p.m. ROLL CALL Present: Martin Opem Sr., President Andy Hoffe, Commissioner Karen Nolte, Commissioner Steve Sommer, Commissioner Absent: Mary Gwin-Lenth, Commissioner Staff Present: Dan Donahue, City Manager Kim Berggren, Community Development Assistant Curtis Jacobsen, Community Development Specialist 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 Commissioner Sommer, to approve the Regular Meeting Minutes of August 28, 2006. Voting in favor: Opem, Hoffe, Nolte, Sommer; Voting Against: None; Abstained: None; Absent: Gwin-Lenth. Motion carried. IMP. PROJECT 811 President Opem introduced for discussion Item 4, Update regarding the Item 4 potential redevelopment of the city-owned parcels at 7601, 7621, and 7641 62 nd Avenue North (improvement project no. 811). Mr. Kirk McDonald, community development director, explained that staff requests to update the Economic Development Authority (EDA) on items related to the proposed redevelopment of the city-owned parcels at 7601, 7621, and 7641 62nd Avenue. He explained that per the interim agreement adopted on August 28, 2006, the current owner of the Swift Gas Station, located at the corner of 62nd Avenue and West Broadway (6113 West Broadway), is working on plans to incorporate the three vacant city-owned lots and the five properties to the west of the city-owned lots into the redevelopment of the gas station site. He stated strategic goal number 3 in the 2006 City Plan is to encourage maintenance, redevelopment, and reinvestment of existing properties to improve the tax base. Mr. McDonald relayed that at its August 28, 2006 meeting, the EDA EDA Meeting Page 1October 23, 2006 authorized an exclusive negotiation period with Delkar, LLC, for the redevelopment of the city-owned vacant lots along 62nd Avenue, which included a cost sharing agreement. He stated the current owner of the Swift Gas Station, located at the corner of 62nd Avenue and West Broadway (6113 West Broadway), has requested to incorporate the three vacant city-owned lots (7601, 7621, and 7641 62nd Avenue) into the redevelopment of the gas station site. He stated the city acquired the three properties in 1998 and land banked the properties with the intent of redeveloping the site with medium density housing, possibly townhomes. Mr. McDonald stated at the July 24, 2006, City Council meeting, a general concept proposal for a mixed-use development was presented to the City Council and the redeveloper was present to provide comments. He reported the Council indicated a willingness to consider a proposal for the city’s lots, and suggested that staff continue to work with the redeveloper on an agreement for preliminary negotiations. Mr. McDonald explained that staff has continued to work with the redeveloper on the proposed project. He stated the interim agreement listed six elements to be completed by October 16. He explained the developer has submitted brief information about other projects; selected an architect and had discussion with several development firms; provided a demographic survey; provided a preliminary concept plan; met with the owner of El Dorado Apartments; and submitted a 1999 environmental assessment for the Swift Gas Station site. Mr. McDonald indicated the developer has made a major modification to the initial concept plan and is now proposing a townhome project without a commercial element. He stated the owner of the apartment complex and the owner of the four-unit building have both expressed a willingness to sell their properties for a fair price. Mr. McDonald also relayed that the developer does not feel a new market study is necessary since the city has two fairly recent market studies for Winnetka Green and City Center. He illustrated the concept drawing and elevation for a 36-unit owner- occupied townhome development to be known as New Hope’s “Northgate”. He stated the units would each have a two-car garage and deck, and the units would be placed in U shaped configurations with landscaped court yards facing 62 Avenue. He reported the site previously contained 44 apartment nd units plus the gas station. Mr. McDonald indicated the city’s planner was consulted and recommended no more than 32 units for the site. He indicated the developer’s selected architect is Gene Nicolelli who was the architect for the NCRC Sims Park Project. He stated no builder has been identified yet. He indicated flexibility by the city through the use of a PUD, rezoning and comprehensive plan amendment would all be required for the current concept to proceed. Mr. McDonald stated if the EDA continues to support the project, staff will work with the redeveloper to meet the next timeline in the interim agreement for submission of a construction pro forma and other financial documents. He noted the $5,000 deposit has not been drawn upon and recommended EDA Meeting Page 2October 23, 2006 involving Krass Monroe in the financial review process. He also recommended the financial information be submitted to the EDA prior to conducting a neighborhood meeting. Mr. Gene Nicolelli, architect, was recognized. He explained the approach for the development with attractive U shaped structures rather than one long building facing the street. He indicated the site concept consist of three 11-unit buildings and one 3-unit building with one, two and three bedroom units ranging from 1,100 to 1,800 square feet. He stated the impact of the construction will be softened by setting the buildings farther back from 62 nd Avenue and adding green space. He stated the majority of the units would have private decks facing the courtyard. Commissioner Sommer inquired whether the proposed development contained any single-level living spaces. Mr. Nicolelli indicated there are no ground level units because the garages are beneath the units. He explained that some of the units contain living space on one level after entering the one flight of stairs from the garage. Discussion ensued regarding the need for a market study. Commissioner Nolte emphasized the need for market study for the site. She also expressed the need for assurance that the development will be owner-occupied not leased or rented. Other EDA members concurred. President Opem expressed the importance of utilizing the entire area and reaching an agreement with the property owner of El Dorado Apartments. He also pointed out the need to prevent the gas station property from being a financial burden to the city if soil cleanup is necessary. He questioned the feasibility of constructing the project in the two-phase approach and recommended the first phase include the El Dorado Apartments and the second phase include the city-owned property and the developer’s gas station site. He suggested reducing the development to 29 units to maintain setbacks and allow room in the rear for snow storage and sufficient green space to separate the development from the homes to the south. President Opem requested assurance within the homeowner association bylaws that the units are owner-occupied. Commissioner Sommer concurred with President Opem that the housing density discussion can be on-going. He suggested that the developer reach an agreement with the owner of the apartments before financial consultant expenses are incurred. He also pointed out the city does not intend to offer tax increment financing and the city’s involvement should be contribution of the land only. Mr. Anwar Abdel-Karim, developer, was recognized. He reported that he has been negotiating the purchase of the El Dorado Apartments and indicated he recently gave a verbal offer. He expressed concern that reducing the density would diminish the feasibility of the project. EDA Meeting Page 3October 23, 2006 President Opem noted Mr. Nicolelli is a good architect and has done nice work in the city. He suggested exploring creative solutions. Mr. Kirk McDonald, director of community development, indicated staff will try to address the issues and will provide the EDA with another update near the end of November or early December. He explained that the agreement and timeline could be amended accordingly. ADJOURNMENT Motion was made by Commissioner Nolte, seconded by Commissioner Sommer, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:34 p.m. Respectfully submitted, Valerie Leone City Clerk EDA Meeting Page 4October 23, 2006