09 09 19 EDA MinutesEDA Meeting
Page 1 September 9, 2019
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes September 9, 2019
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:25 p.m.
ROLL CALL Present:
Absent:
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
Tim Fournier, Police Chief
Vicki Holthaus, AEM
Valerie Leone, City Clerk
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 Hoffe, seconded by Commissioner Elder, to
approve the minutes of August 26, 2019. All present voted in favor. Motion
carried.
2020 LEVY AND
BUDGET
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution authorizing
the proposed levy of a special benefit levy pursuant to Minnesota Statutes, Section
469.033, subdivision 6 and approval of a preliminary budget for fiscal year 2020.
Mr. Kirk McDonald, executive director, asked the EDA to approve a $348,000 levy
for 2020. He explained the amount is a $48,000 increase over last year to help
support the scattered site housing program.
RESOLUTION 2019-06
Item 4
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION AUTHORIZING THE PROPOSED LEVY OF A
SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A PRELIMINARY
BUDGET FOR FISCAL YEAR 2020”. The motion for the adoption of the
foregoing resolution was seconded by Commissioner Hoffe, and upon vote being
taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe;
and the following voted against the same: None; Abstained: None; Absent:
London; whereupon the resolution was declared duly passed and adopted, signed
by the president which was attested to by the executive director.
EDA Meeting
Page 2 September 9, 2019
AUTOMOTIVE
CONCEPTS TIF
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution adopting a
modification to the redevelopment plan for Redevelopment Project No. 1,
establishing the Automotive Concepts Tax Increment Financing District therein,
and adopting a tax increment financing plan therefor, and Resolution authorizing
an interfund loan for advance of certain costs in connection with the Automotive
Concepts Tax Increment Financing District.
Mr. Jeff Sargent, director of community development, explained that Automotive
Concepts has been working with the city to seek improvements to the property at
2919 Nevada Avenue North. At the April 15 work session the Council discussed
potential TIF assistance with the business owners, reviewed the business plan and
was generally supportive. On June 24, 2019, Council approved a CUP for a PUD
to allow for the construction of a new 22,500 sf building as an extension to the
Automotive Concepts business. The site has challenging topography and there are
significant costs involved with preparing the property. LHB, Inc. was hired by the
city to perform the TIF survey to determine whether the property met the
eligibility of a TIF district. LHB concluded that the property meets the minimum
requirements for slum and blight and lot coverage in order to create a TIF district.
Ehlers has conducted an analysis of the developer’s pro forma and determined
that the redevelopment TIF district can support $150,000 of funding over nine
years. Also, staff recommends approval of an interfund loan for up to $25,000.
Mr. Sargent asked the EDA to approve a resolution recommending to the City
Council to approve the TIF plan and District and to adopt a resolution authorizing
an interfund loan for advance of certain costs in connection with the Automotive
Concepts TIF District.
RESOLUTION 2019-07
Item 5
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION ADOPTING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1,
ESTABLISHING THE AUTOMOTIVE CONCEPTS TAX INCREMENT
FINANCING DISTRICT THEREIN, AND ADOPTING A TAX INCREMENT
FINANCING PLAN THEREFOR.” The motion for the adoption of the foregoing
resolution was seconded by Commissioner Hoffe, and upon vote being taken
thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and
the following voted against the same: None; Abstained: None; Absent: London;
whereupon the resolution was declared duly passed and adopted, signed by the
president which was attested to by the executive director.
RESOLUTION 2019-08
Item 5
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE
AUTOMOTIVE CONCEPTS TAX INCREMENT FINANCING DISTRICT.”
The motion for the adoption of the foregoing resolution was seconded by
Commissioner Hoffe, and upon vote being taken thereon, the following voted in
favor thereof: Hemken, Elder, Frazier, Hoffe; and the following voted against the
same: None; Abstained: None; Absent: London; whereupon the resolution was
declared duly passed and adopted, signed by the president which was attested to
by the executive director.
EDA Meeting
Page 3 September 9, 2019
ADJOURNMENT Motion was made by Commissioner Frazier, seconded by Commissioner Elder, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 7:39 p.m.
Respectfully submitted,
Valerie Leone, City Clerk