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082806 EDA CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes August 28, 2006 Regular Meeting City Hall CALL TO ORDER President Opem called the meeting of the Economic Development Authority to order at 9:25 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 Berggren, Community Development Assistant Guy Johnson, Director of Public Works Valerie Leone, City Clerk Steve Sondrall, City Attorney Vince VanderTop, Assistant City Engineer APPROVE MINUTES Motion was made by Commissioner Sommer, seconded by Commissioner Hoffe, to approve the Regular Meeting Minutes of June 26, 2006, with a minor correction on page 1. Voting in favor: Gwin-Lenth, Hoffe, Nolte, Sommer; Voting Against: None; Abstained: Opem; Absent: None. Motion carried. 7601, 7621, AND 7641 President Opem introduced for discussion Item 4, Resolution approving 62 AVENUE interim agreement with Delkar, LLC for the city-owned parcels at 7601, 7621, ND Item 4 and 7641 62 Avenue. nd Mr. Kirk McDonald, director of community development, indicated staff is requesting the Economic Development Authority to review an interim agreement which would authorize an exclusive negotiation period with Delkar, LLC for the redevelopment of the city-owned vacant lots along 62 nd Avenue, as well as a cost sharing agreement. He stated Anwar Karim, the owner of the Swift Gas Station, is in the audience and has requested to incorporate the three vacant city-owned lots (7601, 7621, and 7641 62 nd Avenue North) into the redevelopment of the gas station site. Mr. McDonald indicated at the July 24 Council Meeting Mr. Karim presented a redevelopment concept for properties along 62 Avenue. He stated the nd Council expressed a willingness to consider a project contingent upon a market study and inclusion of all parcels on the south side of 62 Avenue to nd the west of the city-owned lots. He stated staff has been working with the EDA Meeting Page 1August 28, 2006 developer and has discussed the appropriateness of retail in the location, the height of the building, and the number of parcels to be included. Mr. McDonald stated Mr. Karim is interested in exploring options for redevelopment including mixed-use or owner-occupied townhomes. Mr. McDonald stated an interim agreement has been drafted to outline the proposal. He reviewed the series of steps to be completed by the redeveloper to accomplish by October 16, November 20, and December 15. Mr. McDonald indicated the city and the redeveloper would share the costs of the city’s redevelopment/financial consultant, Krass Monroe, with a budget not to exceed $5,000 ($2,500 each). He also stated the redeveloper must submit a $500 non-refundable fee and a $2,500 deposit for the negotiation period. He noted the deposit is a deviation from the city’s standard $5,000 deposit requirement, and is based on the expected consultant expenses. Mr. McDonald stated the agreement requires the city to decide by November 20 whether to amend the comprehensive plan and zoning to accommodate the project, and through December 15 to continue negotiations on a term sheet. He indicated the city would pay costs related to time incurred by staff, engineer, planner, or attorney, and the developer would be responsible for development consultant costs he incurs such as architect, market study, etc. He noted if the development does not materialize, the city would receive copies of the market analysis and soil and engineering reports. Mr. McDonald stated the agreement expires on December 15, 2006, and the city may terminate it earlier if the redeveloper does not meet the requirements or deadlines outlined in the agreement. The EDA discussed the concept plan that would include the following properties: 7761, 7741, 7721, 7701, 7661, 7641, 7621, 7601 62 Avenue and 6113 nd West Broadway. Mr. McDonald stated an update will be provided to the EDA on October 23. Commissioner Gwin-Lenth recommended postponing discussions with Krass Monroe until a market study is completed and made available to the city. Commissioner Nolte questioned the developer’s background and who he intends to employ for an architect and engineer. Mr. Amwar Karim stated his intention to use the services of DJR Architects and Braun Engineering. President Opem commented that according to the agreement the redeveloper has until October 16 to furnish information regarding his qualifications, involvement with other projects, development team information, and market study. He concurred with Commissioner Gwin-Lenth that staff postpone contacting Krass Monroe until receipt of the fore mentioned items. He stated the city is requiring a non-refundable $500 deposit as well as a $2,500 deposit EDA Meeting Page 2August 28, 2006 towards the expense of Krass Monroe. President Opem questioned whether the city has any obligations if the proposal is not to the EDA’s liking. Mr. McDonald confirmed that the city is under no obligation to approve the project. Commissioner Hoffe asked whether the city has an appraisal of the property. Mr. McDonald indicated the city has market value information and an appraisal would need to be completed at a later date if the EDA supports the concept. Commissioner Sommer indicated if the concept does not appear feasible as of October 16, the city can refund the redeveloper’s $2,500 deposit. The EDA directed staff to collect $3,000 from the redeveloper ($500 non-refundable fee and $2,500 deposit). EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its 06-06 adoption: “RESOLUTION APPROVING INTERIM AGREEMENT WITH Item 4 DELKAR, LLC FOR THE CITY-OWNED PARCELS AT 7601, 7621, AND 7641 62 AVENUE.” The motion for the adoption of the foregoing resolution ND was seconded by Commissioner Gwin-Lenth, 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 Sommer, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:47 p.m. Respectfully submitted, Valerie Leone City Clerk EDA Meeting Page 3August 28, 2006