022508 EDA
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CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
February 25, 2008
EDA Meeting will commence upon
adjoumment of the City Council Meeting
President Martin Opem Sr.
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
Commissioner Daniel Stauner
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of January 28,2008
4. Motion to authorize staff and city attorney to proceed with drafting a loan
agreement for a Holiday StationStore at 7180 42nd Avenue North, BCD Holdings,
LLC applicant.
5. Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 842
Item 4
EDA Meeting
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
January 28,2008
City Hall
President Opem called the meeting of the Economic Development Authority
to order at 9:00 p.m.
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
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.
President Opem introduced for discussion Item 4, Resolution approving
interim agreement with Ryan Companies US, Ine., 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 ovmers 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
determine if the parcels qualify for inclusion in a ne\v tax increment
financing district.
<) Deadline of Marcl1 24 for the redeveloper to develop a preliminary
January 28, 2008
EDA RESOLUTION
08-01
Item 4
IMP. PROJECT 795
Item 5
EDA Meeting
Page 2
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
1A and lB.
· Submission of concept plans and financial feasibility to EDA by April 28
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.
· Redeveloper will be responsible for fees and costs of its consultants.
· Redeveloper will be responsible for 50% of EDA's fees related to TIF
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.
Commissioner Stauner introduced the following resolution and moved its
adoption: "RESOLUTION APPROVING INTERIM AGREEMENT WITH
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 follO\'\'ing 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.
President Opem introduced for discussion Item 5, Resolution approving first
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
January 28,2008
EDA RESOLUTION
08-02
IMP. PROJECT 740
Item 6
EDA RESOLUTION
08-03
ADJOURNMENT
EDA Meeting
Page 3
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 withdra"WTl 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.
Commissioner Sommer introduced the following resolution and moved its
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.
President Opem introduced for discussion Item 6, 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).
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.
Commissioner Nolte introduced the following resolution and moved its
adoption: "RESOLUTION AUTHORIZING SIGNATURES FOR
CERTIFICA TE 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 v'lhich was attested to by the executive director.
Motion was made by Commissioner Nolte, seconded by Commissioner
Sommer, to adjourn the meeting. All present voted in favor. Motion carried.
January 28,2008
The New Hope EDA adjourned at9:20 p.m.
Respectfully submitted,
~~
Valerie Leone, City Clerk
EDA Meeting
Page 4
January 28,2008
EDA
Request for Action
Originating Department
A pproved for Agenda
Agenda Section
Community Development
February 25, 2008
EDA
Item No.
B : Curtis Jacobsen, CD S ecialist
B : Kirk McDonald, Ci
4
Motion to authorize staff and city attorney to proceed with drafting a loan agreement for a Holiday
StationStore at 7180 42nd Avenue North, BCD Holdinas, LLC a licant.
Requested Action
Staff requests that the Council approve a motion authorizing city staff and city attorney to draft appropriate
loan documents for BCD Holding, LLC, the applicant, to construct a Holiday StationStore at 7180 42nd
Avenue North.
Policy/Past Practice
It is the past practice of the CouncillEDA to consider loans to businesses on a case by case basis and set the
terms and interest rates according to the merits of the project.
Background
The Council last considered this project at the Council work session on February 19 at which time it v,ras
indicated to the developer that the Council would consider a business loan for the project. The developer had
previously met with the Mayor, City Manager and CD Specialist on February 12 to discuss other options
which may allow the project to proceed. One idea that was discussed was to eliminate the second separate
building for the car wash and attach that to the back of the convenience store a potential savings of $50,000 to
$60,000 to the project. Additionally, the idea of a lo\y interest loan was discussed. Mayor Opem suggested that
he could support a loan to the project but not the use of TIP. At the work session the Council was in general
agreement that they could support a small low interest business loan to the project, with proper security and
possible personal guarantees. As part of the process, staff "vas directed to perform appropriate due diligence,
and a thorough review of the projects pro-forma.
TI1e request is for a $60,000.00 low interest loan at three (3) percent interest with a ten year amortization
eriod and a rments startina 18 months after the ro'ect has been com leted.
Motion by
Second by
To:
I:\RFA \PLANNING\PLANNlNG\Q - Holida authorize loan ao-reement 2-25-08.doc
Request for Action
February 25, 2008
Page 2
Funding
Funding for this business loan will be provided through the economic development reserves of the EDA.
Attachment
e BCD Holdings, LLC (memo)
MEMORANDUM
TO:
Curtis Jacobson
FROM:
BCD Holdings, LLC
DATE:
February 14, 2008
Holiday Station Store on 42nd Avenue
RE:
*************
Dear Curtis:
We appreciated the opportunity to meet with everyone on last Monday. As we discussed
we would like to explore the possibility of moving the car wash behind the building which
should be a large savings for us.
In addition, we would ask that the City of New Hope give us a low interest loan (3%) for
$60,000 with a 10 year amortization period and payments starting 18 months after the
project has been completed.
With these modifications we feel that we can move ahead without any Tax Increment
Financing assistance.
Thank You
Chuck Durand