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