021207 EDA
CITY OF NEW HOPE
4401 XYLON A VENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes February 12, 2007
Regular Meeting City Hall
CALL TO ORDER President Opem called the meeting of the Economic Development Authority
to order at 10:40 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
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 Sommer, seconded by Commissioner
Nolte, to approve the Regular Meeting Minutes of January 8, 2007. All
present voted in favor. Motion carried.
IMP. PROJECT 811 President Opem introduced for discussion Item 4, Update regarding the
Item 4 Northgate project, its financial feasibility and request to terminate interim
agreement (improvement project no. 811).
Mr. Kirk McDonald, director of community development, provided
background of the proposed project and noted at the January 8 meeting the
market study for the site was presented. He explained that due to the land
cost for the western portion of the site, a large 27 or 36-unit development does
not appear financially feasible. He stated the developer would like the city to
consider a 13-unit development utilizing the four eastern lots only (gas station
property and three city-owned lots). Mr. McDonald stated a profit of $54,000
is projected for the smaller 13-unit development. He asked the EDA to
consider whether they wish to pursue a large project and provide an
additional subsidy to the project beyond the contribution of land or whether
they wish to proceed with a smaller project which may be financially feasible.
He stated if neither option is acceptable to the EDA, action should be taken to
terminate the interim agreement.
Mr. McDonald conveyed his appreciation to Mr. Abdel-Karim for his
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cooperation during the project review. He asked the EDA to allow the
developer an opportunity to address the EDA.
Mr. Anwar Abdel-Karim was recognized. He asked the EDA to approve a
smaller project involving four lots and emphasized the development would
improve the aesthetics of the area, increase property values, and generate
property taxes for the city. He stated the development would be quality
construction.
Mr. Frank Drake, realtor with Edina Realty, was recognized and pointed out
that Mr. Abdel-Karim has expended over $7,000 and has complied with all of
the city's requests. He emphasized the smaller project would be attractive and
they would continue to pursue the acquisition of the western lots.
President Opem thanked Mr. Abdel-Karim for his efforts but noted the
agreement by the city to sell the three lots for one dollar each was contingent
upon development of the entire block. The EDA discussed the current
competition (existing new townhomes that are unsold at Winnetka Green and
Winnetka Townhomes), and the increased demand for apartment rental
properties. The consensus of the EDA was to continue land-banking the city-
owned property.
MOTION Motion was made by Commissioner Stauner, seconded by Commissioner
Item 4 Nolte, to terminate the interim agreement (improvement project no. 811).
All present voted in favor. Motion carried.
ADJOURNMENT Motion was made by Commissioner Nolte, seconded by Commission
Sommer, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 11:01 p.m.
Respectfully submitted,
~~
Valerie Leone
City Clerk
EDA Meeting
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