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091007 EDA CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes September 10, 2007 Regular Meeting City Hall CALL TO ORDER President Opem called the meeting of the Economic Development Authority to order at 8:50 p.m. ROLL CALL Present: Martin Opem Sr., President Andy Hoffe, 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 Quisberg, Assistant City Engineer APPROVE MINUTES 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. IMP. PROJECT 776 President Opem introduced for discussion Item 4, Resolution authorizing Item 4 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. EDA Meeting Page 1September 10, 2007 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 (TIF). Mr. Kirk McDonald, acting city manager, pointed out that restrictions differ based on the type of TIF 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. EDA RESOLUTION Commissioner Nolte introduced the following resolution and moved its 07-02 adoption: “RESOLUTION AUTHORIZING SIGNATURES FOR Item 4 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. 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 9:05 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 2September 10, 2007