022508 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes February 25, 2008
Regular Meeting City Hall
CALL TO ORDER
President Opem called the meeting of the Economic Development Authority
to order at 8:00 p.m.
ROLL CALL
Present: Martin Opem Sr., President
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Daniel Stauner, Commissioner
Absent: Steve Sommer, Commissioner
Staff Present: Kirk McDonald, Executive Director
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 January 28, 2008.
Voting in favor: Opem, Hoffe, Nolte, Stauner; Voting against: None; Absent:
Sommer; Abstained: None. Motion carried.
HOLIDAY
President Opem introduced for discussion Item 4, Motion to authorize staff
STATIONSTORE
and city attorney to proceed with drafting a loan agreement for a Holiday
IMP. PROJECT 844
StationStore at 7180 42nd Avenue North, BCD Holdings, LLC applicant.
Item 4
Mr. Kirk McDonald, executive director, explained that the applicant could not
be in attendance tonight. He stated the Council originally discussed the
developer’s request for tax increment financing assistance at the February 11
council meeting. Subsequently the mayor and staff met with the developer on
February 12 to discuss other funding options such as a business loan. At the
February 19 work session the Council expressed general support of the
developer’s modified request for a $60,000 low interest loan.
Mr. McDonald stated the request is for a $60,000 low interest loan at three
percent interest with a ten year amortization and payments starting 18
months after project completion. He stated funding of the business loan
would be provided through EDA reserves. Mr. McDonald stated as
recommended by Council, staff will perform appropriate due diligence and a
thorough review of the project pro-forma. Mr. McDonald stated if the EDA is
agreeable the next step is to authorize staff and the city attorney to draft the
appropriate loan documents.
President Opem stated three percent is the current prime rate. He pointed out
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Page 1February 25, 2008
that based on the increased property value the city would net an additional
$150,000 in taxes over the next 25 years. The EDA commented on their
preference for a business loan rather than tax increment financing to enable
the development of the property.
MOTION
Motion was made by Commissioner Stauner, seconded by Commissioner
Item 4 Nolte, authorizing staff and city attorney to proceed with drafting a loan
agreement for a Holiday StationStore at 7180 42nd Avenue North, BCD
Holdings, LLC applicant. Voting in favor: Opem, Hoffe, Nolte, Stauner;
Voting against: None; Absent: Sommer; Abstained: None. Motion carried.
ADJOURNMENT
Motion was made by Commissioner Nolte, seconded by Commissioner
Stauner, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:05 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
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