092407 EDA
~
1. Call to order
2. Roll call
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
September 24,2007
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Martin Opem Sr.
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
Commissioner Daniel Stauner
3. Approval of regular meeting minutes of September 10, 2007
4. Resolution authorizing signatures on certificate of completion related to Winnetka
Green (improvement project no. 751)
5. Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 776
Item 4
EDA Meeting
Page 1
CITY OF NEW HOPE
4401 XYLON A VENUE NORTH
NEW HOPE, MINNESOTA 55428
September 10, 2007
City Hall
President Opem called the meeting of the Economic Development Authority
to order at 8:50 p.m.
Present:
Martin Opem Sr., President
Andy Hofk Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
Absent:
Daniel Stauner, Commissioner
Staff Present:
Kirk McDonald, Director of Community Development
Curtis Jacobsen, Community Development Intern
Eve Lomaistro, Human Resources Coordinator
Steve Sondrall, City Attorney
Jason QuisbE;rg, Assistant City Engineer
Motion was made by Commissioner Nolte, seconded by Commissioner
Sommer, to approve the Regular Meeting Minutes of May 14, 2007. Voting
in favor: Opem, Hoffe, Nolte, Sommer; Voting against: None; Absent:
Stauner; Abstained: None. Motion carried.
President Opem introduced for discussion Item 4, Resolution authorizing
signatures for Certificate of Completion and Release of Forfeiture related to
the Linden Park Condominiums, a project by PPL (Project for Pride in Living)
at 5445 Boone Avenue North (improvement project no. 776).
Mr. Curtis Jacobsen, community development specialist, explained that the
EDA entered into a contract for private redevelopment with Project for Pride
in Living (PPL) in October of 2004 for a two-phase project: 1) a 35-unit
apartment complex at 5501 Boone; and 2) a 41-unit condominium building at
5445 Boone. He stated the developer has requested issuance of the Certificate
of Completion of the condominium complex so that closings could occur in
late September. He stated a certificate of occupancy was issued on August 31.
Mr. Jacobsen reviewed the restrictions on non-owners as outlined in the
contract. He noted 95 percent of the 41 units are required to be initially sold to
owner occupants. He stated there are other provisions within the Local
Housing Incentive Account funding from the Metropolitan Council that
restrict 20 units permanently through the use of long term deed restrictions to
buyers at 80 percent of area median income. He commented that based upon
the legal restrictions, only two of the 41 units could be sold directly to
investors.
September 10, 2007
EDA RESOLUTION
07-02
Item 4
ADJOURNMENT
EDA Meeting
Page 2
President Opem inquired whether there was a law change as the city was
unable to enforce such an owner-occupied restriction at the Winnetka Green
development.
Mr. Steve Sondrall, city attorney, indicated the difference likely relates to the
use of tax increment financing (TIP).
Mr. Kirk McDonald, acting city manager, pointed out that restrictions differ
based on the type of TIP district, and noted the PPL project was within a TIF
"housing" district and Winnetka Green was part of a TIF "development"
district. He noted he would consult Krass Monroe for clarification.
Commissioner Nolte suggested an improved means of the contractor keeping
the city informed when construction changes become necessary. She
commented regarding the hard court surface area at the PPL site. Mr.
Jacobsen noted PPL has agreed to enlarge the area to 20x20 feet, and the city is
holding a $5,000 cash deposit.
Mr. McDonald stated the city engineer and city inspectors review the project
on an ongoing basis and reductions to financial guarantees are not brought
forward without site inspections.
Mayor Opem stated any time there is an agreement for a playground area in
lieu of a dedicated park fee, the site should be built according to plans unless
the change is approved by the Council/EDA.
Commissioner Nolte introduced the following resolution and moved its
adoption: "RESOLUTION AUTHORIZING SIGNATURES FOR
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
RELATED TO THE LINDEN PARK CONDOMINIUMS, A PROJECT BY
PPL (PROJECT FOR PRIDE IN LIVING) AT 5445 BOONE AVENUE
NORTH (IMPROVEMENT PROJECT NO. 776)," 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; and the following voted against the same:
None; Abstained: None; Absent: Stauner; whereupon the resolution was
declared duly passed and adopted, signed by the president which was
attested to by the executive director.
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 9:05 p.m.
Respectfully submitted,
~~
Valerie Leone, City Clerk
September 10, 2007
EDA
Request for Action
Originating Department
Approved for Agenda
Agenda Item
Community Development
September 24, 2007
EDA
Item No.
By: Kirk McDonald, Acting CM
Curtis Jacobsen, CD S ecialist
By:
4
Resolution authorizino- si2.1latures on Certificate of Com letion related to Winnetka Green (Project No. 751)
Requested Action
Staff requests the EDA approve the resolution authorizing signatures on the Certificate of Completion and
Release of Forfeiture related to Winnetka Green, southeast quadrant of Bass Lake Road and Winnetka A venue
North a project by Ryland Group, Inc.
Policy/Past Practice
It is past practice of the EDA to authorize signatures on the Certificate of Completion and Release of
Forfeiture when the Developer has completed the 1\1inimum Improvements and has been issued a Certificate
of Occupancy for any individual residential unit in that building. This Certificate of Completion and Release
of Forfeiture is similar to the ones approved for Emerald Pointe Apartments and Linden Park condominiums.
Background
The EDA entered into a Contract for Private Redevelopment with Ryland Group on January 26, 2004, for a
two phase project, 175 unit development, for the redevelopment of the site at the southeast quadrant of Bass
Lake Road and Winnetka Avenue North. The first permit for building construction in the project was issued
July 2, 2004, the building was finaled on December 8, 2004 and a Certificate of Occupancy was issued on
December 14, 2004.
This project was conducted as a TIP redevelopment district making requirements for this project considerably
different from those of the Linden Park Condominiums which were completed under TIF Housing Dish'ict
regulations. (See attached letter from Krass Monroe)
Staff and the city attorney recommend the approval of a Resolution authorizing signatures on the Certificate
of Com letion.
Motion by
j/
.,J'OJW-YUA"
Second by Llr~t-,-
To:
ibt fiJA
/1
'Q {; 7-03
I: \ RF A \ PLANNING \PLA.NNlNG \ Planning \ Q & R - Cert of completion Winnetka Green.doc
Page 2
Request for Action
September 24, 2007
Attachment(s)
e Resolution
e Attorney letter (8-31-2007)
e Certificate of Completion
e Copy Certificate of Occupancy
e Copy of Building Permit
e Memo Krass Monroe (9-11-2007)
e Contract for Private Redevelopment excerpts
I: \ RFA \ PLANNING \ PLANNING \ Planning \ Q & R - Cert of completion Winnetka Green.doc
City of New Hope
EDA Resolution No. 2007-_
Resolution authorizing signatures for Certificate of Completion
and Release of Forfeiture related to the Winnetka Green housing project
a project by Ryland Group, Inc.
(Improvement Project No. 751)
WHEREAS, the EDA is requested to issue the Certificate of Completion and Release
of Forfeiture for Winnetka Green; and
WHEREAS, the Contract for Private Redevelopment states that the EDA will promptly
furnish the Redeveloper a Certificate of Completion after completion of
the projects Minimum Improvements; and
WHEREAS, the Minimum Improvements are deemed to be completed when the City
has issued a Certificate of OccuEancy for any individual unit of that
building; and
WHEREAS, a Certificate of Occupancy for the building at 7801 Elm Groove A venue
was issued on December 14, 2004.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
of the City of New Hope, Hennepin County, Minnesota:
1. That the President and Executive Director are hereby authorized
and directed to sign the Certificate of Completion and Release of
Forfeiture for the Winnetka Green project, located in the southeast
quadrant of Bass Lake Road and Winnetka Avenue North.
2. The City Clerk shall provide Ryland with a signed copy of this
resolution and the signed Certificate of Completion.
Adopted by the Economic Development Authority of the city of Ne\v Hope, Hermepin
County, Minnesota, this 24th day of September 2007,
President
Attest:
Executive Director
I: \ RF A \ PLANNING \ PLANNLl\JG \ Planning \ Q & R - Cert of completion Winnetka Green.doc
LESLIE A. ANDERSON
GORDON L, JENSEN!
A.1\1Y E. PAPEl\'HAUSEN
STEVEN A, SONDRALL
'Real Property Law
Specialist Certified By
The Minnesota State
Bar Association
JENSEN ANDERSON SONDRALL, P.A.
Attorneys At Law
August 31, 2007
Mr. Kirk McDonald
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Winnetka Green Master Association
Our File: 99.20401
Dear Mr. McDonald:
8525 EDINBROOK CROSSING, STE, 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHO:NE (763) 424-8811 . TELEFAX (763) 493-5193
e-mail law@jasattorneys.com
Writer's Direct Dial No.: (763) 201-0228
e-mail aep@jasattomeys.com
At the request of Steve Sondrall, I am sending you the enclosed Certificate of Completion
and Release of Forfeiture relative to the Wirinetka Green property. When the City conveyed the
property to the Ryland Corporation, the City retained a right of forfeiture and additionally there
were some conditions relative to the completion of the property. It is now appropriate to release
the conditions and the right to forfeiture,
Please have the appropriate individuals sign the enclosed document and return it to my
attention. Our office will then forward the document to the Ryland Corporation for recording.
If you should have any questions or concerns, please do not hesitate to contact me.
Very truly yours,
C~~
." . .~\'~:\'~---'"
Amy~nhausen --
Enclosure(s)
cc: Steve Sondrall
Curtis Jacobsen
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, the New hope Economic Development Authority, a public body corporate
and politic under the laws of Minnesota (the "Grantor"), by a Deed recorded in the Office
of the County Recorder or the Registrar of Titles in and for the County of Hennepin and
State of Minnesota, as Deed Document Numbers 8393076 and 8481595, respectively, has
conveyed to The Ryland Group, Inc" a Maryland corporation, (the "Grantee"), the
follov.i.ng described land in County of Hennepin and State of Minnesota, to v.i.t:
See Attached Exhibit A
WHEREAS, said Deed contained certain covenants and restrictions, the breach of which
by Grantee, its successors and assigns, would result in a forfeiture and right of re-entry by
Grantor, its successors and assigns, said covenants and restrictions being set forth in said
Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is
able in a manner deemed sufficient by the Grantor to permit the execution and recording
of this certification;
NOW THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee have been completed and
the above covenants and conditions in said Deed have been performed by the Grantee
therein and that the provisions for forfeiture of title and right to re-entry for breach of
condition subsequent by the Grantor herein is released absolutely and forever insofar as it
applies to the land described herein, and the County Recorder or the Register of Titles in
and for the County of Hennepin and State of Minnesota is hereby authorized to accept for
recording and to record this instrument, and the filing of this instrument shall be a
conclusive determination of the satisfactory termination of the covenants and conditions
referred to in said Deed, the breach of which would result in a forfeiture and right of re-
entry.
,2007
Dated:
NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
)ss
COUNTY OF HENNEPIN )
On this day of , 2007 before me, a notary public within and for
Hennepin County, personally appeared and to
me personally knovvn who by me duly sworn, did say that they are the President and
Executive Director, respectively, of the New Hope Economic Development Authority, a
public body corporate and politic under the laws of Minnesota, and acknowledged the
foregoing instrument on behalf of said Authority.
Notary Public
EXHIBIT A
Abstract Parcels
Lot 1 Block 3 Winnetka Green, Unit Numbers III through 116
Lot 60 Block 2 Winnetka Green, Unit Numbers 211 through 218
Lot 2 Block 3 Winnetka Green, Unit Numbers 311 through 316
Lot 61 Block 2 Winnetka Green, Unit Numbers 411 through 416
Lot 3 Block 3 Winnetka Green, Unit Numbers 511 through 516
Lot 3 Block 4 Winnetka Green, Unit Number 517
Lot 3, Block 5 Winnetka Green, Unit Number 518
Torrens Parcels
Lot 23 Block 1 Winnetka Green, Unit Numbers 611 through 618
Lot 24 Block 1 Winnetka Green, Unit Numbers 711 through 718
Lot 1 Block 2 Winnetka Green 2nd Addition, Unit Numbers 811 through 818
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-l. _ +rt '-'~ '" '" . c: _ p''''' -- ~ ~ - 1
PERMIT
..::.
City of New Hope
4401 Xylon Avenue North
New Hope,:MN 55428
763-531-5127
Permit Type:
Permit Number:
Building
:NH023116
Date Issued:
07/02/2004
Site Address:
7801 ELM GROVE A VB N
Lot:
PID:
Use:
Block:
Addition:
FINALED
I~-~ "O~
Description:
Sub Type:
Work Type:
Description:
Census Code:
Multi Dwelling
Occupancy:
Construction Type:
Zoning:
Square Feet:
New
New 8 unit condo
Remar ks: See notes on plans
Fee Summary:
Surcharge - Based on Valuation
Plan Review
UBC 1997 - base fee
Base SAC Charge Fee (Fee Group Use)
268.00
851.19
3,404.75
10,800.00
815,323.94
2383
4555
4310
Valuation: $536,000.00
Contractor:
Ryland Homes
7600 Executive Drive
Eden Prairie, MN 55344
(952) 229-6000
- Applicant -
St. Lic.: 20035443
Owner:
Ryland Homes
THIS PERMIT IS GRANTED lJPON THE EXPRESS CO:NTIITIONS TRA T SAID O\VN'ER OR AGENT TO WHOM IT IS GRANTED,
AND CONTRACTORS, AGENTS, WORKERS MJD EMPLOYEES SHALL COMPLY IN ALL RESPECTS WITH THE
ORDINANCES OF THE CITY OF :N'EW HOPE.
~ G.. ~
A nnlicHntlPp.nnitp.p.' .~iOl1H111rp
T"'l"l1.o..:f t:)". c~..............+,.........
KRASS
MONROE
James R. Casserly
jcasseriy@krassmonroe.com
Direct 952.885.1296
Gay L. Cerney
gcemey@krassmonroe.com
Direct 952.885.4393
Also admitted in New York
MEMORANDUM
To: City of New Hope
Attn: Kirk McDonald, Interim City Manager
From: Gay Cerney, Esq,
James R. Casserly, Esq,
Date: September 11, 2007
Re: New Hope/Boone Avenue
Our File No,: 10048-21
This memorandum will explain the main differences between the Winnetka Green
TIF District No. 03-1 (Special Law) and the Boone Avenue/Project for Pride in Living TIF
District No. 04-2.
Winnetka Green
The Winnetka Green TIF District was created as a 25-year redevelopment tax
increment financing district based on the current condition of the parcels included in the
district. Two tests were required to be met for the creation of this district: (1) more than
50% of the buildings within the district were required to be "structurally substandard", and (2)
parcels comprising at least 70% of the surface area of the district were required to be
"occupied by" buildings, streets, utilities, parking lots and the like. A parcel is deemed to be
"occupied by" buildings, streets, etc. if at least 15% of the surface area of the parcel is
covered by such structures,
Once these tests are met, there are no restrictions on the future (redeveloped) use of
the property within the TIF district. In the case of Winnetka Green, residential housing was
constructed on the site, There are no limitations imposed by the Minnesota Tax Increment
Act relating to the income level of the buyers of the homes, whether they must be owner-
8000 NORMAN CENTER DRIVE, SUITE 1000 e MINNEAPOLIS, MINNESOTA 55437.1178
TELEPHONE 9521885-5999" FACSIMILE 9521885-5969
www.krassmonroe.com
occupied or whether they may be rented after they are purchased, As discussed in the
previous paragraph, only the condition of the property before the district is created is of
concern in the creation and maintenance of a redevelopment TIF district.
Boone Avenue/Project for Pride in Living
The property within the Boone Avenue TIF District did not qualify as a redevelopment
tax increment financing district because no buildings were located on the property, and thus
the "blight" and "coverage" tests referred to above would not have been met. Instead, the
property was created as a 25-year housing tax increment financing district. Qualification as
a housing TIF district is based solely on the planned future use of the parcels for affordable
housing, and the property's current use and condition is irrelevant.
The qualification tests were different for the rental and ownership portions of the PPL
project, but both were intended to ensure that the development will result in affordable
housing as required by the Tax Increment Act:
1, The apartments was developed as a 100% low-income housing tax
credit development with at least 75% of the units rented to households with incomes less
than 60% of the area median income, PPL must demonstrate compliance with this
requirement on an annual basis over the life of the District.
2, At least 95% of the condominium units were required to be initially
purchased and occupied by households with incomes between 100 to 115% of area median
income. This test is applied only to the first buyers of each unit, and resales of units are not
subject to this test.
G;\WPDATAWiNEW HOPE\21\COR\MCDONALD GLC 01.DOC
. Page 2
Section 4.4. Certificate of ComDletion.
(a) Promptly after completion of the Minimum Improvements for each Building in
accordance with the provisions of this Agreement relating to the obligations of the Redeveloper to
construct such improvements (including the date for completion thereof), the Authority will furnish
the Redeveloper with a Certificate of Completion for such Building. The Certificate of Completion
shall be a conclusive determination and conclusive evidence of the satisfaction and termination of
the agreements and covenants in this Agreement and in the Redevelopment Property Deed with
respect to the obligations of the Redeveloper and its successors and assigns, to construct the
Minimum Improvements for each Building and the date for the completion thereof.
(b) If the Authority believes the Redeveloper has failed to complete the Minimum
Improvements as to any Building for which a Certificate of Completion is requested by the
Redeveloper, the Authority shall, within nventy (20) days after such written request by the
Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what
respects the Authority believes the Redeveloper has failed to complete the Minimum Improvements
in accordance with the provisions of this Agreement, and what measures or acts \vill be necessfu)l, in
the opinion of the Authority, for the Redeveloper to take or perform in order to obtain a Certificate of
Completion.
(c) The construction ofthe Minimum Improvements for each Building shall be deemed to
be completed in accordance with the Redeveloper's obligations hereunder \vhen the City has issued a
certificate of occupancy for any individual residential unit of that Building.
21