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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