062308 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes June 23, 2008
Regular Meeting City Hall
CALL TO ORDER President Opem called the meeting of the Economic Development Authority
to order at 8:25 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
Jason Quisberg, City Engineer
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Nolte, seconded by Commissioner Elder,
to approve the Regular Meeting Minutes of May 27, 2008. All present voted
in favor. Motion carried.
IMP. PROJECT 842 President Opem introduced for discussion Item 4, Resolution approving an
Item 4
amended and restated interim agreement between Ryan Companies, Inc. and
the New Hope Economic Development Authority for the potential
redevelopment of city center (improvement project no. 842).
Mr. Kirk McDonald, city manager, stated staff along with Ryan Companies
and Krass Monroe would like to provide an update regarding the city center
project and discuss an amended interim agreement. He stated the Council last
discussed the project on May 29 and Council consensus was in favor of an
extension of the interim agreement. Mr. McDonald also noted that Mark
Schoening of Ryan Companies brought a representative of Target Corporation
to address the Council.
Mr. McDonald reviewed the terms of the restated interim agreement:
August 11, 2009 – extension of interim agreement
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By July 31, 2008 – completion of the analysis of the southeast quadrant for
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inclusion in a TIF District
By July 31 – determination of the analysis of the impacts for the school
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district’s possible relocation
By July 31 – conduct subsequent work session by City Council
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By December 31 – upon appropriate findings, the EDA will certify a
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redevelopment tax increment district for the southeast quadrant
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Redeveloper will continue to work with the EDA to refine its
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redevelopment plans for all of Phase 1A and 1B.
Redeveloper will have entered into contractual arrangements to relocate
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the school district facilities either inside or outside of the city prior to this
agreement’s termination.
50/50 cost share by developer and EDA for financial analysis
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Developer is responsible for all costs they incur for their own consultants
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Mr. McDonald noted based on the last discussion with the City Council, the
redeveloper has broadened the scope of where the school district offices could
be relocated. He also noted Ryan Companies has invested a substantial
amount of resources to determine the feasibility of the project. He introduced
Mark Schoening of Ryan Companies.
Mr. Mark Schoening indicated Ryan Companies expressed support of the
restated interim agreement and noted Ryan Companies would not be
continuing to explore the project if they did not believe they could find a
solution for a redevelopment project. He noted they are very encouraged by
the cooperation shown by all involved parties.
Mr. Tom Carrico, regional real estate manager for Target Corporation, was
recognized. He indicated Target is interested in the potential redevelopment
of the 42/Winnetka Avenue site. He expressed support for the project.
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Commissioner Stauner expressed concern regarding language contained in
Item 3i of the agreement: “The Authority will also approve a hazardous
substance subdistrict within the district if eligible costs exist and for such
period of time and for such parcels as permitted by statute”.
The EDA agreed with Mr. Schoening’s recommendation to change the word
“will” to “is willing to consider”.
Commissioner Hoffe inquired of the financial aspects.
Mr. Jim Casserly of Krass Monroe reported that additional financial
information would be completed by July 31 and shared with the
Council/EDA. Mr. Casserly commented on the impact of lower property
valuations related to tax increment.
The EDA briefly discussed the project including the relocation of the school
district administration office, the negotiation process with businesses in the
project area, project finances, and the interim agreement. Mr. McDonald noted
if it is determined the project is not feasible, the agreement could be
terminated prior to August of 2009 by mutual agreement of the parties.
Mr. Schoening spoke of Ryan Companies’ experience with similar projects
and noted they use highly qualified professionals to conduct the necessary
research in determining project feasibility.
The EDA expressed its appreciation for Ryan Companies’ efforts.
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EDA RESOLUTION Commissioner Elder introduced the following resolution and moved its
08-09 adoption subject to the amendment to item 3i: “RESOLUTION APPROVING
Item 4 AN AMENDED AND RESTATED INTERIM AGREEMENT BETWEEN
RYAN COMPANIES, INC. AND THE NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY FOR THE POTENTIAL
REDEVELOPMENT OF CITY CENTER (IMPROVEMENT PROJECT NO.
842).” The motion for the adoption of the foregoing resolution was seconded
by Commissioner Stauner, 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 Elder,
to adjourn the meeting. All present voted in favor. Motion carried. The New
Hope EDA adjourned at 8:50 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
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