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
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the west of the city-owned lots. He stated staff has been working with the
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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
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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
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