072808 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes July 28, 2008
Regular Meeting City Hall
CALL TO ORDER President Opem called the meeting of the Economic Development Authority
to order at 9:10 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
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Melanie Persellin, City Attorney’s Office
Jason Quisberg, City Engineer
APPROVE MINUTES Motion was made by Commissioner Nolte, seconded by Commissioner Elder,
to approve the Regular Meeting Minutes of June 23, 2008. All present voted
in favor. Motion carried.
IMP. PROJECT 844 President Opem introduced for discussion Item 4, Resolution approving BCD
Item 4
Holdings, LLC/Holiday Station loan documents for the redevelopment of 7180
42 Avenue North (improvement project no. 844).
nd
Commissioner Stauner expressed concerns regarding language within the
mortgage subordination agreement. He recommended striking the language
or ensuring the references reflect interest, mortgage, or lien “of record” to
prohibit the city from agreeing to subordinate a loan that is not currently in
place. He suggested a letter of agreement from Holiday stating the city would
subordinate to an amount currently owed. He also recommended a limitation
on the interest rate so it is no greater than the present rate, and guarantee that
there would be no changes in late fees or other material loan documents. He
emphasized the need for the city to be adequately protected.
Mr. Kirk McDonald, city manager, stated the city attorney has been working
with the petitioner’s attorney and will be asked to revise the loan documents.
Commissioner Hoffe requested that any known concerns by the city attorney
or staff be drawn to the EDA’s attention in advance.
MOTION Motion was made by Commissioner Stauner, seconded by Commissioner
Item 4 Elder, to postpone approval of the loan documents to a future meeting to
EDA Meeting
Page 1July 28, 2008
allow revision of the loan documents. All present voted in favor. Motion
carried.
IMP. PROJECT 766 President Opem introduced for discussion Item 5, Resolution authorizing the
Item 5
expenditure of Hennepin County Housing and Redevelopment Authority
(HCHRA) funds from the Hennepin County Affordable Housing Incentive
Fund to be received and expended by Project for Pride in Living (PPL) within
the city of New Hope (improvement project no. 766).
Mr. Curtis Jacobsen, director of community development, stated PPL has
found it necessary to apply for funding through the Hennepin County HRA
and the Hennepin County Affordable Housing Incentive Fund (AHIF) to
assist the organization with holding costs at the Linden Park Condominiums
during the slow housing market. He reported that state statutes require that
before a county HRA can expend money within a city that has its own
development agency it must receive authorization for said action from the
city. Staff recommends that the Council approve the resolution authorizing
PPL to accept and expend the Hennepin County AHIF monies within the city
of New Hope. Mr. Jacobsen reported that he was recently advised that PPL
was granted $320,000 which will be reflected in the resolution.
Commissioner Hoffe inquired whether the funding would burden the city.
Mr. Jacobsen stated there is no risk to the city.
EDA RESOLUTION Commissioner Nolte introduced the following resolution and moved its
08-10 adoption: “RESOLUTION AUTHORIZING THE EXPENDITURE OF
Item 5 HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
(HCHRA) FUNDS FROM THE HENNEPIN COUNTY AFFORDABLE
HOUSING INCENTIVE FUND TO BE RECEIVED AND EXPENDED BY
PROJECT FOR PRIDE IN LIVING (PPL) WITHIN THE CITY OF NEW
HOPE (IMPROVEMENT PROJECT NO. 766).” 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 9:20 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 2July 28, 2008