012808 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes January 28, 2008
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 9:00 p.m.
ROLL CALL
Present: Martin Opem Sr., President
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Daniel Stauner, Commissioner
Steve Sommer, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Community Development Specialist
Valerie Leone, City Clerk
Steve Sondrall, City Attorney
APPROVE MINUTES
Motion was made by Commissioner Nolte, seconded by Commissioner
Stauner, to approve the Regular Meeting Minutes of December 10, 2007.
Voting in favor: Opem, Hoffe, Nolte, Stauner; Voting against: None; Absent:
None; Abstained: Sommer. Motion carried.
IMP. PROJECT 842
President Opem introduced for discussion Item 4, Resolution approving
Item 4
interim agreement with Ryan Companies US, Inc., for the further discussion
and investigation of the potential redevelopment of City Center
(improvement project no. 842).
Mr. Kirk McDonald, city manager, reported that Mark Schoening of Ryan
Companies and Jim Casserly of Krass Monroe are in attendance to answer any
questions. He also noted the attendance of several local business owners and
residents who are interested in the proposed project.
Mr. McDonald stated at the December 10 work session, Ryan Companies
reviewed their proposal for the potential redevelopment of the city center
area, and Council authorized staff to develop an interim agreement. Mr.
McDonald stated staff and the city’s redevelopment consultant held a meeting
with the developer to develop the interim agreement. He stated the interim
agreement outlines preliminary steps and establishes a timeline of milestones
to be achieved by both parties. He stated the EDA will negotiate exclusively
with Ryan Companies until August 11, 2008, provided that deadlines for
certain milestones are met. He highlighted components of the agreement:
Deadline of February 15 for the EDA and redevelopment counsel to
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determine if the parcels qualify for inclusion in a new tax increment
financing district.
Deadline of March 24 for the redeveloper to develop a preliminary
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Page 1January 28, 2008
concept plan and provide information for a TIF revenue analysis (value of
proposed construction).
Deadline of April 21 for EDA to determine financial feasibility of Phases
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1A and 1B.
Submission of concept plans and financial feasibility to EDA by April 28
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and if found favorable by the EDA, redeveloper and city will host a
community open house by June 14.
EDA will be responsible for fees and costs of city consultants.
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Redeveloper will be responsible for fees and costs of its consultants.
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Redeveloper will be responsible for 50% of EDA’s fees related to TIF
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district qualification; Redeveloper will submit a deposit of $5,000 to the
city.
Mr. McDonald stated funding for the EDA’s portion of the project costs will
be paid by EDA reserves set aside for redevelopment purposes.
Mr. McDonald recommended approval of the interim agreement by the EDA
as a first step to determine whether the project can become a reality.
Mr. Mark Schoening of Ryan Companies was recognized. He expressed
excitement to explore the project further to determine whether it is feasible.
Mr. Jim Casserly of Krass Monroe made reference to several timelines in the
agreement and indicated if the EDA approves the agreement, Krass Monroe
will begin the financial analysis and determine which parcels will qualify for
inclusion in the redevelopment district.
Commissioner Sommer called attention to the school district’s needs
regarding relocation (must provide replacement costs rather than market
value of the school district property).
Mr. Kirk McDonald, city manager, pointed out that the redeveloper and staff
have discussed the school district relocation requirements.
EDA RESOLUTION
Commissioner Stauner introduced the following resolution and moved its
08-01 adoption: “RESOLUTION APPROVING INTERIM AGREEMENT WITH
Item 4 RYAN COMPANIES US, INC., FOR THE FURTHER DISCUSSION AND
INVESTIGATION OF THE POTENTIAL REDEVELOPMENT OF CITY
CENTER (IMPROVEMENT PROJECT NO. 842).” The motion for the
adoption of the foregoing resolution was seconded by Commissioner Nolte,
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.
IMP. PROJECT 795
President Opem introduced for discussion Item 5, Resolution approving first
Item 5
amendment to interim agreement with Insignia Development for the Bass
Lake Road Apartments redevelopment project (improvement project no. 795).
Mr. Curtis Jacobsen, community development specialist, reported that on
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November 26, the City Council discussed Insignia Development’s request for
a one-year extension of the redevelopment agreement for the Bass Lake Road
Apartments redevelopment project. He stated an amendment has been
drafted which provides a one-year extension on all timelines contained within
the agreement dated May 14, 2007. He stated the term of the agreement would
be extended until October 1, 2009, but could be withdrawn by either party
with a 45-day notice. Mr. Jacobsen reported that Don Uram of Insignia
Development is available if the EDA has questions regarding the extension.
EDA RESOLUTION
Commissioner Sommer introduced the following resolution and moved its
08-02 adoption: “RESOLUTION APPROVING FIRST AMENDMENT TO
INTERIM AGREEMENT WITH INSIGNIA DEVELOPMENT FOR THE
BASS LAKE ROAD APARTMENTS REDEVELOPMENT PROJECT
(IMPROVEMENT PROJECT NO. 795).” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Nolte, 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.
IMP. PROJECT 740
President Opem introduced for discussion Item 6, Resolution authorizing
Item 6
signatures for certificate of completion and release of forfeiture and also a
release of Planned Unit Development Conditional Use Permit Site
Improvement Agreement related to the Village on Quebec project by Data
Sales, Inc. at 7500 – 7562 42nd Avenue North (improvement project no. 740).
Mr. Curtis Jacobsen, community development specialist, stated the city
routinely issues a Certificate of Completion and Release of Forfeiture when a
developer completes minimum improvements and a certificate of occupancy
has been issued. He stated the city issued a certificate of occupancy on May 9,
2007. He stated the city attorney has been consulted and is supportive of
approving the certificate of completion as well as the release of the planned
unit development/conditional use permit.
EDA RESOLUTION
Commissioner Nolte introduced the following resolution and moved its
08-03 adoption: “RESOLUTION AUTHORIZING SIGNATURES FOR
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE AND
ALSO A RELEASE OF PLANNED UNIT DEVELOPMENT
CONDITIONAL USE PERMIT SITE IMPROVEMENT AGREEMENT
RELATED TO THE VILLAGE ON QUEBEC PROJECT BY DATA SALES,
INC. AT 7500 – 7562 42ND AVENUE NORTH (IMPROVEMENT PROJECT
NO. 740).” The motion for the adoption of the foregoing resolution was
seconded by Commissioner Sommer, 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.
ADJOURNMENT
Motion was made by Commissioner Nolte, seconded by Commissioner
Sommer, to adjourn the meeting. All present voted in favor. Motion carried.
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The New Hope EDA adjourned at9:20 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
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