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
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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
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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.
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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
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