051407 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes May 14, 2007
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 9:16 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
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 Nolte, seconded by Commissioner
Sommer, to approve the Regular Meeting Minutes of February 12, 2007. All
present voted in favor. Motion carried.
IMP. PROJECT 795
President Opem introduced for discussion Item 4, Resolution authorizing an
Item 4
interim agreement with Insignia Development for the Bass Lake Road
Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401,
8411, and 8421 58 Avenue) (improvement project no. 795).
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Mr. Kirk McDonald, director of community development, asked the Council
to approve two items related to this item: 1) a resolution authorizing an
interim agreement with Insignia Development; and 2) a motion to amend the
purchase offer for the Bass Lake Road Apartments (per the Council’s direction
to the city attorney at the May 7 work session).
He explained the project involves the redevelopment of the Bass Lake Road
Apartments site. He noted Insignia Development participated in the 2005 RFQ
process and remains interested in the project. He stated Don Uram, President
of Insignia, is available for questions. Mr. McDonald reviewed the
responsibilities of the developer: payment of a $500 non-refundable fee;
complete market study by December 1, 2007; submit concept plan and $5,000
refundable deposit in spring of 2008; and continue to meet deadlines through
summer/early fall. He noted the agreement end date is October 1, 2008.
EDA Meeting
Page 1May 14, 2007
Mr. McDonald also reviewed the city’s responsibilities: provide previously
prepared documents on the site/project to developer; attempt to acquire site;
cooperate with developer and negotiate in good faith; and pay for the city’s
associated costs including planning, engineering, and legal costs.
Next, Mr. McDonald reviewed the city’s counteroffer for the purchase of the
Bass Lake Apartments site. He stated the purchase offer remains at $2.145
million; there is no end date on the offer; the city will provide $50,000 in
escrow payable at closing; and the city will complete a due diligence
inspection.
Mr. Don Uram, President of Insignia Development, was recognized. He
expressed his appreciation to work with the city on the redevelopment
project. He stated his intention of providing a market study to show what can
be supported by the site. He stated he anticipates the approval process,
including pre-sales, to occur during 2008 and construction to take place
through 2009.
Commissioner Stauner strongly urged the developer to consider a mixed use
development such as retail for the site. He stated he believes the site could
support some type of retail. He also noted a restaurant could be greatly
supported by the housing development as well as golf course patrons.
Commissioner Stauner thanked Mr. Uram for his perseverance with the
proposed project.
Mr. Uram stated the mixed use concept will be part of the market study. He
also pointed out that the timelines included in the interim agreement can
always be moved forward if the development progresses in a more timely
fashion.
Commissioner Sommer pointed out the city could have pursued the purchase
of the property and landbanked it for the future. He stated the city is fortunate
to have a qualified developer such as Insignia interested in the project, and he
supported continuing the relationship with Insignia Development.
The EDA expressed their support for moving forward with the proposed
redevelopment project.
RESOLUTION 07-01
Commissioner Stauner introduced the following resolution and moved its
Item 4 adoption: “RESOLUTION AUTHORIZING AN INTERIM AGREEMENT
WITH INSIGNIA DEVELOPMENT FOR THE BASS LAKE ROAD
APARTMENTS REDEVELOPMENT PROJECT (8400 AND 8420 BASS
LAKE ROAD AND 8401, 8411, AND 8421 58 AVENUE) (IMPROVEMENT
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PROJECT NO. 795).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Hoffe, and upon vote being taken thereon,
the following voted in favor thereof: Opem, Hoffe, Nolte, Sommer, Stauner;
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.
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Page 2May 14, 2007
MOTION
Motion was made by Commissioner Nolte, seconded by Commissioner
Item 4 Stauner, to approve a counteroffer for the purchase of Bass Lake Road
Apartments as discussed at the May 7, 2007, work session. All present voted
in favor. Motion carried.
IMP. PROJECT 697
President Opem introduced for discussion Item 5, Motion authorizing
Item 5
expenditure of $15,000 for legal fees related to a cost recovery claim against
Unocal/Chevron (improvement project no. 697).
MOTION
Motion was made by Commissioner Sommer, seconded by Commission
Item 5 Stauner, authorizing expenditure of $15,000 for legal fees related to a cost
recovery claim against Unocal/Chevron (improvement project no. 697). All
present voted in favor. Motion carried.
ADJOURNMENT
Motion was made by Commissioner Nolte, seconded by Commission Hoffe,
to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at9:30 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting
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