010807 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes January 8, 2007
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 8:05 p.m.
ROLL CALL
Present: Martin Opem Sr., President
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
Daniel Stauner, Commissioner
Staff Present: Dan Donahue, City Manager
Kim Berggren, Community Development Assistant
Shari French, Director of Parks & Recreation
Curtis Jacobsen, Community Development Specialist
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 Hoffe, seconded by Commissioner Nolte,
to approve the Regular Meeting Minutes of December 11, 2006. All present
voted in favor. Motion carried.
IMP. PROJECT 811
President Opem introduced for discussion Item 4, Update regarding the
Item 4
Northgate market study and possible involvement/participation in the project
by Northwest Community Revitalization Corporation (NCRC) (improvement
project no. 811)
Mr. Curtis Jacobsen, community development specialist, reported that the
Northgate Townhomes Market Analysis was completed on December 15,
2006. He illustrated the market area that encompassed parts of Brooklyn Park,
Brooklyn Center, Crystal, Robbinsdale, Maple Grove, and Plymouth. Mr.
Jacobsen indicated the study showed that townhomes in New Hope are being
offered in the price range of $132 to $148 per square foot. He stated some
neighboring communities have townhomes in the range of $111 to $125 per
square foot, but there are also developments with prices up to $170 per square
foot. He stated the Northgate area is considered to be a slightly weaker site
than either Winnetka Greens or Winnetka Townhomes and pricing could be
in the $125 to $135 per square foot range. Mr. Jacobsen provided average and
median household income data.
EDA Meeting
Page 1January 8, 2007
Mr. Jacobsen reported that the Northwest Community Revitalization
Corporation (NCRC) may be interested in participating with the developer on
the project. He stated Kris Madson, executive director of NCRC, and Anwar
Abdel-Karim, developer, will be in attendance to answer questions. He
commented that NCRC can be a valuable partner with their experience and
financial contributions. Mr. Jacobsen indicated the participation of NCRC in
the project may require a modification of the site design to incorporate units
with ground floor living to accommodate accessibility issues. He illustrated
the existing proposed building elevation and site plan.
Mr. Jacobsen asked the EDA for comments regarding the market study and
whether the EDA would support the partnership between NCRC and the
developer. He pointed out that the importance of proceeding with the next
step to obtain a financial analysis from Krass Monroe. It was noted that the
$5,000 cost of the financial analysis would be shared 50/50 between the
developer and the city.
President Opem recalled that the original proposal was for market-rate
housing to draw average or above-average income level residents to New
Hope. He expressed concern with the recommendation for lower per square
foot price ranges. He noted NCRC was recently involved with a townhome
development in New Hope (Sims Park) that is attractive but is not completely
sold. He pointed out that NCRC’s involvement should be disbursed
throughout the northwest area including Maple Grove and Plymouth rather
than being concentrated in one city. He noted while the developer may see a
benefit of partnering with NCRC, he questioned the concept of reduced
housing density and the feasibility of producing a market-rate housing
project.
Council Member Hoffe inquired of the projected changes to the plans in order
to accommodate single-level units. Mr. Jacobsen stated he is not certain but
suggested the EDA allow the developer or a representative of NCRC to
address the EDA. He noted some issues will not be known until completion of
the financial feasibility.
Commissioner Nolte questioned potential environmental concerns of the gas
station property. Mr. Jacobsen indicated the city has copies of an
environmental impact study that was done previously on the site, and the soil
problems were considered minimal. He noted the interim agreement
addressed the soil contamination issue and removed the city from any
potential liability for clean up costs. Commissioner Nolte pointed out that
additional clean up costs could negatively impact the feasibility of the project
no matter who is responsible for the costs.
The EDA shared concerns regarding other townhome competition, the city’s
reluctance to provide financial assistance other than the three lots, the market
demand for ground-level units, uncertainty of financial feasibility with less
than 36-unit housing density project, the desire for market-rate housing, and
EDA Meeting
Page 2January 8, 2007
the need to have a revised proposal before expending funds for the financial
analysis by Krass Monroe.
Mr. Jacobsen questioned whether the EDA supported the involvement of
NCRC with the project. President Opem noted NCRC must decide whether
they wish to proceed with some type of proposal.
The EDA advised the developer of its desire to review the revised proposal of
reduced housing units (to include modifications to accommodate NCRC’s
criteria) prior to expending funds for a financial analysis by Krass Monroe.
ADJOURNMENT Motion was made by Commissioner Hoffe, seconded by President Opem, to
adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:30 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting
Page 3January 8, 2007