020909 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes February 9, 2009
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 7:55 p.m.
ROLL CALL Present: Kathi Hemken., President
John Elder, Commissioner
Andy Hoffe, Commissioner
Daniel Stauner, Commissioner
Absent: Eric Lammle, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Valerie Leone, City Clerk
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Stauner, seconded by Commissioner
Hoffe, to approve the Regular Meeting Minutes of December 8, 2008. Voting
in favor. Elder, Hoffe, Stauner; Voting against: None; Abstained: Hemken;
Absent: Lammle. Motion carried.
IMP PROJECT 795 President Hemken introduced for discussion Item 4, Resolution terminating
Item 4
the Interim Agreement with Insignia Development for non-performance
(improvement project no. 795).
Mr. Curtis Jacobsen, director of community development, stated due to the
difficult housing market Insignia is unable to fulfill the obligations of the
agreement and staff recommends terminating the agreement. He stated the
company was notified by written and oral communication of the city’s intent
to terminate the agreement. He stated when the housing market condition
improves the city can consider undertaking another Request for Proposal
process.
Mr. Steve Sondrall, city attorney, concurred with staff’s recommendation.
Commissioner Stauner asked that the resolution be modified slightly to
clearly state the reason for termination. The EDA was agreeable to inclusion
of the following language as the third Whereas in the resolution: failure to
deliver the market study required by the interim agreement that was due on
or before December 1, 2008.
EDA RESOLUTION Commissioner Stauner introduced the following resolution and moved its
09-01 adoption: “RESOLUTION TERMINATING THE INTERIM AGREEMENT
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Item 4 WITH INSIGNIA DEVELOPMENT FOR NON-PERFORMANCE
(IMPROVEMENT PROJECT NO. 795).” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Elder, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder,
Hoffe, Stauner; and the following voted against the same: None; Abstained:
None; Absent: Lammle; whereupon the resolution was declared duly passed
and adopted, signed by the president which was attested to by the executive
director.
Discussion ensued regarding possible short-term use of the vacant property at
8400 Bass Lake Road during the summer months. Mr. Jacobsen shared some
suggestions such as community gardens, miniature golf, domed driving
range, or to leave as green space. He expressed staff’s concern regarding
introducing activities to the property this summer as heavy use could disturb
the recently grass seeded area.
Commissioner Stauner mentioned the close proximity of Meadow Lake and
noted the run off from fertilizer used for gardening purposes would enter the
lake which would be problematic. Mr. Jacobsen noted the city has alternate
sites that could serve as community gardens.
The EDA supported leaving the area as green space at the present time.
Director Jacobsen noted the golf course staff will mow the site this summer.
Commission Stauner mentioned an article that Brooklyn Center lobbied the
legislature to pass a special law to set up a TIF district to rehab existing
houses. He wondered whether New Hope has communicated with our
legislators on such a bill as it could be useful due to foreclosures and property
maintenance issues in the city. Commissioner Stauner also mentioned
foreclosures are oftentimes avoidable if owners could refinance at a lower
interest rate. He suggested exploring a program to provide EDA money for
low interest loans (i.e. to cover closing costs) as a foreclosure prevention
measure program in New Hope. He acknowledged that certain criteria would
need to be met in order to qualify.
Mr. Jacobsen shared that there have been 85 foreclosures in the city over the
last year, and the private sector purchased about 80% of the foreclosed
properties and put them back on the market which shows that New Hope
continues to be a desired housing area.
Mr. Jacobsen indicated he will research the legislation mentioned by
Commissioner Stauner.
Rental housing issues were discussed. Commissioner Elder noted the city is
not against rental properties or renters but must ensure that properties are
adequately maintained.
President Hemken indicated at the February 7 legislative breakfast the group
home topic was discussed including the notification process. Mr. McDonald
stated the city usually receives notification from Hennepin County when new
group homes enter the city, but staff is interested in legislation that would
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include a minimum distance requirement between group home properties.
ADJOURNMENT Motion was made by Commissioner Elder, seconded by Commissioner
Stauner, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:12 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
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