052708 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes May 27, 2008
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
John Elder, Commissioner
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Daniel Stauner, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Valerie Leone, City Clerk
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Nolte, seconded by President Opem, to
approve the Regular Meeting Minutes of April 28, 2008. Voting in favor:
Opem, Hoffe, Nolte, Stauner; Voting against: None; Abstained: Elder; Absent:
None. Motion carried.
IMP. PROJECT 844
President Opem introduced for discussion Item 4, Resolution approving BCD
Item 4
Holdings, LLC/Holiday StationStore loan documents for the redevelopment
of 7180 42 Avenue North (improvement project no. 844).
nd
President Opem reviewed the terms of the $60,000 loan includes an interest
rate of three percent over ten years and the payment for the first 18 months
will be deferred.
The EDA expressed concerns regarding the mortgage subordination
agreement which requires the city to subordinate its lien to future liens
against the property. Council Member Stauner recommended the document
be revised to specify the debt the city’s loan would subordinate. Mr. Steve
Sondrall, city attorney, pointed out that he has requested the following
information from Chuck Durand: title evidence that BCD Holdings is the fee
owner of the mortgaged property, documentation that BCD Holdings has at
least $60,000 of equity in the property, and that Chuck Durand personally
guarantees the loan.
The EDA directed the city attorney to revise the loan documents for
consideration at the EDA meeting June 9, 2008.
IMP. PROJECT 836
President Opem introduced for discussion Item 5, Resolution awarding
Item 5
demolition contract for the Bass Lake Road Apartment complex
EDA Meeting
Page 1May 27, 2008
(improvement project no. 836).
Mr. Kirk McDonald, city manager, stated the low bid for demolition of the
Bass Lake Road Apartments complex was submitted by Sauter & Sons for
$98,100 plus an $8,000 per building burn deduct. He reported on the favorable
bid as the estimate was $150,000 ($30,000 per building).
Mr. Curtis Jacobsen, community development director, reported that he
checked the contractor’s references and other cities were complimentary of
Sauter & Sons’ performance.
EDA RESOLUTION
Commissioner Nolte introduced the following resolution and moved its
08-08 adoption: “RESOLUTION AWARDING DEMOLITION CONTRACT FOR
Item 5THE BASS LAKE ROAD APARTMENT COMPLEX (IMPROVEMENT
PROJECT NO. 836).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Elder, and upon vote being taken thereon,
the following voted in favor thereof: Opem, Elder, Hoffe, Nolte, 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
Stauner, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 9:09 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
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