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08 26 19 EDA Minutes EDA Meeting Page 1 August 26, 2019 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 EDA Minutes August 26, 2019 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 7:16 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Cedrick Frazier, Commissioner Andy Hoffe, Commissioner Jonathan London, Commissioner Staff Present: Kirk McDonald, City Manager Jeff Alger, Community Development Specialist Dan Boyum, City Engineer Tim Fournier, Police Chief Beth Kramer, Administrative Specialist Susan Rader, Director of Parks and Recreation Jeff Sargent, Director of Community Development Stacy Woods, Assistant City Attorney APPROVAL OF MINUTES Item 3 Motion was made by Commissioner London, seconded by Commissioner Frazier, to approve the minutes of August 12, 2019. All present voted in favor. Motion carried. IMP. PROJECT 1038 Item 4 President Hemken introduced for discussion EDA Item 4, Resolution approving purchase agreement for the acquisition of 6027 West Broadway (improvement project no. 1038). Mr. Jeff Alger, community development specialist, explained that 6027 West Broadway is located in a prime redevelopment area and that since 2014, the ci ty has acquired and demolished five homes in the area, resulting in six new homes. Mr. Alger noted the subject property is the lowest-valued single-family home in the city with a 2018 assessed value of $93,000 and 2019 assessed value of $115,000. Mr. Alger noted the home has two bedrooms, one bathroom and less than 800 square feet of above-grade living space, sits on a quarter-acre parcel and has a detached single-car garage. Mr. Alger reported that an appraisal valued the property at $145,000 and staff has had several meetings with the property owner before reaching an agreement, contingent on EDA approval, of the city purchasing the home for $141,000 and splitting closing costs evenly with the property owner, estimated to be $1,300 per party. Mr. Alger noted there are two potential configurations for a new home on the property based on setbacks and lot size. Mr. Alger reported expenses associated EDA Meeting Page 2 August 26, 2019 with the project are estimated to be $163,512 with revenue from the sale price being $60,000, resulting in a loss of $103,512. He noted the funding gap would come from the EDA budget. Mr. Alger noted the timeline for the project is not set, due to a provision in the contract that the property owner has until May 31, 2020, to sell and vacate the property. President Hemken and Commissioner Elder both commented on the benefit these projects have to area neighborhoods. Council Member Frazier inquired if there have been recent Habitat for Humanity opportunities in the city. Mr. Jeff Sargent, community development director, reported in past practice, it was not uncommon for properties such as the subject property to be purchased by the city and sold to organizations such as Habitat for Humanity or Homes Within Reach. He noted that the city retains more control of the project through the current scattered site housing process. Mr. McDonald noted that Habitat for Humanity has approached the city with interest in purchasing a property in the past, and staff approaches the EDA when this happens. Council Member Elder noted he appreciates the city retaining more control of the projects. RESOLUTION 2019-05 Item 4 Commissioner London introduced the following resolution and moved its adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 6027 WEST BROADWAY (IMPROVEMENT PROJECT NO. 1038)”. The motion for the adoption of the foregoing resolution was seconded by Commissioner Frazier, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe, London; 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 Frazier, seconded by Commissioner Hoffe, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 7:28 p.m. Respectfully submitted, Beth Kramer, Administrative Specialist