081009 EDA
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CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
August 10, 2009
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Daniel Stauner
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of February 9, 2009
4. Resolution approving an amended and restated interim agreement between Ryan
Companies, Inc., and the New Hope Economic Development Authority for the
potential redevelopment of City Center (improvement project no. 842)
5. Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP PROJECT 795
Item 4
EDA RESOLUTION
09-01
EDA Meeting
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
February 9,2099
City Hall
President Hemken called the meeting of the Economic Development
Authority to order at 7:55 p.m.
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
Motion was made by Commissioner Stauner, seconded by Commissioner
Hoffe, to approve the ReguIar Meeting Minutes of December 8, 2008. Voting
in favor. Elder, Hoffe, Stauner; Voting against: None; Abstained: Hemken;
Absent: Lammle. Motion carried.
President Hemken introduced for discussion Item 4, Resolution terminating
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.
Commissioner Stauner introduced the following resolution and moved its
adoption: "RESOLUTION TERMINATING THE INTERIM AGREEMENT
February 9, 2009
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 (Le. 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
EDA Meeting
Page 2
February 9, 2009
ADJOURNMENT
EDA Meeting
Page 3
include a minimum distance requirement between group home properties.
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
February 9, 2009
EDA
Request for Action
Originating Department
Approved for Agenda
Agenda Section
Community Development
August la, 2009
EDA
Item No.
By: Curtis Jacobsen, Director of CD By: Kirk McDonald, City Mana er 4
Resolution approving an amended and restated interim agreement between Ryan Companies, Inc., and the
New Hope Economic Development Authority for the potential redevelopment of City Center (improvement
roject no. 842)
Requested Action
Staff and Ryan Companies request approval of the attached amended and restated interim agreement
between Ryan Companies, Inc., and the New Hope Economic Development Authority for the potential
redevelopment of City Center.
Policy/Past Practice
It is a past practice of staff to coordinate updates to the Authority for projects on an ongoing basis.
t\dditionally, it is also a past practice to amend and restate agreements from time to time to more accurately
leflect the progress and details of the project.
Backaround ~.~
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The Council met in a work session on 13 for an informal update on the progress being made to comply
with the timeline in the interim agreement. Council consensus was that they favored a one year extension to
the interim agreement to continue looking at the feasibility of the City Center redevelopment.
Funding
Funding for the financial consultant during the interim analysis steps are shared 50/50 with the developer
with the city share being paid with EDA funds. The developer is responsible for all costs they incur for their
consultants.
Attachment(s)
@ Resolution
@ Amended and restated interim aareement
. Motion by
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Second by
To:
I: \ RFA \ PLAl"JNING \ PLANI\.TING \ City Center amended agreement 8-10-09.doc
City of New Hope
EDA Resolution 2009-_
Resolution approving an amended and restated
interim agreement between Ryan Companies, Inc., and
the New Hope Economic Development Authority
for the potential redevelopment of City Center
(improvement project no. 842)
WHEREAS, Ryan Companies US, Inc., and city staff have been working on
completing the steps identified in the interim agreement entered
into on January 28, 2008, regarding the possible redevelopment of
City Center; and
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WHEREAS, on Jttly13, 2009, staff and Ryan Companies made a presentation to
the City Council during a work session; and
WHEREAS, during the July meeting the consensus of the Council was to authorized
staff to negotiate an amended interim agreement with Ryan Companies;
and
WHEREAS, Ryan Companies and staff have reached tentative agreement on
the details of said amended and restated interim agreement with all
major timelines extended by one year.
NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority
in and for the city of New Hope, Minnesota as follows:
1. That said agreement is adopted in its scope and timelines and having
an expiration date of August 10, 2010.
2. The President and the Executive Director of the Economic
Development Authority in and for the city of New Hope are hereby
authorized and directed to enter into said agreement.
Adopted by the Economic Development Authority of the city of New Hope, Hennepin
County, Minnesota, this 10th day of August 2009.
President
Attest:
Executive Director
August 10, 2009
AMENDED AND RESTATED
INTERIM AGREEMENT
This AMENDED AND RESTATED INTERIM AGREEMENT entered into effective the
10th day of August, 2009, by and between the Economic Development Authority in and for the
City of New Hope, Minnesota, a Minnesota public body corporate and politic (the" Authority")
and Ryan Companies US, Inc., a Minnesota corporation (the "Redeveloper").
WHEREAS, the City Center site (the "Site") consists of approximately 51.7 acres of land,
mainly surrounding the intersection of Winnetka and 42nd Avenues with 31 acres in the
northwest quadrant, 4.4 acres in the northeast quadrant, 15 plus acres in the southeast quadrant,
one half acre on the southwest quadrant and an additional 1.1 acres in the northwest quadrant
of 42nd and Xylon Avenues; and
WHEREAS, the Authority desires for the Site to be redeveloped primarily as a
commercial site with a smaller segment of mixed use or multi-family residential development;
and
WHEREAS, the Redeveloper is proposing a redevelopment (the "Project/l) for the Site
and has requested that the Authority negotiate exclusively with the Redeveloper wIllie the
Project is being studied.
WHEREAS, the Redeveloper has initially suggested a first phase ("Phase 1/1) that
includes approximately 32.36 acres located in the northwest, northeast and southeast quadrants
of Winnetka and 42nd Avenues; and
WHEREAS, the Authority is willing to continue to negotiate exclusively with the
Redeveloper until ArtJ.'?usf 10, 2010, provided that deadlines for certain milestones described
below are met. r-<:-h
NOW, THEREFORE, in consideration of the premises and mutual obligations of the
parties contained herein, each of them does hereby agree as follows:
1. Interim Nature of Agreement. The Authority and the Redeveloper agree that this
Agreement is intended to be preliminary in nature. Before the Authority and the
Redeveloper can make a decision on whether to proceed with the Project, it will be
necessary to assemble and consider information relating to the economics, site assembly,
phasing, environmental remediation and other aspects of the Project. The purpose of
this Agreement is to allow the Redeveloper an opportunity to assemble such
information, to prepare a preliminary concept plan and to negotiate with the Authority
concerning the approval of a term sheet (the "Term Sheet") with a view to eventual
execution of a contract for private redevelopment (the "Redevelopment Agreement")
which will set forth the rights and responsibilities of the Authority and the Redeveloper
with respect to the Project.
2. Agreements of the Authority.
(a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's
undertakings and agrees that during the term of this Agreement the Authority
will not negotiate with any third party in connection with redevelopment of the
Site.
(b) The Authority will negotiate with the Redeveloper in good faith, including
examining options for acquisition, relocation, public improvements, demolition,
infrastructure improvements, and the creation of a tax increment financing
("TIP") district or districts for the Project area.
(c) The Authority will provide to the Redeveloper all of the following which the
Authority has in its possession and which relate to the Site: market analyses,
blight reports, surveys, soil, engineering, and geotechnical reports, previous
concept plans and estimates of environmental remediation and soils correction
costs.
3. Undertakings of the Parties.
(a) By February 15, 2008, the Authority and its redevelopment counsel will
determine, on a preliminary basis, whether the parcels in Phase 1 qualify for
inclusion in a new redevelopment ill district and will share their findings with
the Redeveloper. COMPLETED.
(b) On an ongoing basis, the Redeveloper will review such findings and the reports
and other materials provided by the Authority on an as-needed basis. The
Redeveloper and Authority will identify additional issues and concems.
(c) By March 24, 2008, the Redeveloper will, in consultation with the Authority and
the City, develop a preliminary concept plan. The Redeveloper will provide
information requested by the Authority's redevelopment counsel in order to
perform a ill revenue analysis, including the projected product types, taxable
value and completion dates of the new or renovated buildings to be constructed
in Phase 1. COMPLETED,
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(d) By April 21, 200S, the Authority's redevelopment counsel will complete its initial
analysis of projected TIP revenues from Phase 1A (the southeast and northeast
quadrants) and Phase 1B (Winnetka Center) and the Redeveloper and the
Authority will jointly determine whether either or both of Phases 1A and 1B are
financially feasible, given the amount of TIP or other Authority assistance
potentially available to the Project. An updated analysis will be provided to the
Council for the work session referenced in subparagraph (h) below.
COMPLETED,
(e) On April 2S, 200S, the Redeveloper and City staff will present the preliminary
concept plan and their findings as to financial feasibility to the Board of the
Authority. COMPLETED,
(f) By July 31, 2008, the Authority will complete its analysis of the suitability of the
parcels in the southeast quadrant for inclusion in a redevelopment tax increment
district and will review the impact of relocating the school district's facilities
within the City (with such property then becoming tax-exempt) and its impact on
the City's cash flow. COMPLETED,
(g) By July 31, 2008, the City Council will hold another work session to assess the
parties' progress in implementing the undertakings contained in this Agreement.
COMPLETED,
(h) The Authority will approve and certify a redevelopment tax increment district
for the parcels in the southeast quadrant by December 31, 2008 if the appropriate
findings can be made. The Authority and Redeveloper will jointly designate the
first year in which tax increment will be collected. The City will attempt to work
with Hennepin County in establishing the market value of the school district
parcels. The Authority is willing to consider a hazardous substance subdistrict
within the district if eligible costs exist and for such period of time and for such
parcels as permitted by statute. COMPLETED.
(i) -'Th.eJS,~developer and tl1e Independent School District 281 will submit the
-appropriate application for zoning approval of the Hoesterman site as a
-felocaLion site by October 15, 2009, The Authority and Redeveloper agree that
the review of ~ planning application may take more than 120 days and
[1N'1
mutually agree to extend the review as necessary.
(j) After January 15, 2010, City Council may request that the Redeveloper host a
community open house with the assistance of City staff to present the concept
plan for Phase 1Aand solicit feedback from City residents. Before the open
house, neither the Authority nor the Redeveloper will make any community
presentation relating to the Project.
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(k) Before termination of this Agreement, the Redeveloper will have entered into
binding contractual arrangements to relocate the school district's facilities to
another location either inside or outside the City.
(1) The Redeveloper "'lill continue to work with the City to refine its redevelopment
plans for Phase lA, and the City and Redeveloper will continue to work together
to refine the TIP revenue analyses for Phases 1A and 1B in an effort to make all
parts of those Phases financially feasible.
(m) The City and Authority will pursue state and regional grant funding to assist in
project feasibility.
(n) If all of the proceeding steps have occurred to the City's and Redeveloper's
satisfaction, the City and Redeveloper shall enter into a Contract for Private
Redevelopment by the termination of this Agreement, which contract shall relate
to, at a minimum, the southeast quadrant.
4. Responsibility for Costs and Redeveloper Deposit.
(a) During the term of this Agreement, the Authority or the City shall be responsible
for fees and costs of its planning and engineering consultants and the City
Attorney (except as set forth in subparagraph (b)(3) below).
(b) The Redeveloper shall be responsible for:
(1) fees and costs of its counsel and consultants,
(2) the cost of any additional market studies, traffic studies, storm water
studies, environmental analyses, soil borings, or surveys performed by
the Redeveloper, and
(3) one-half (1/2) of the fees incurred after the date of this Agreement by the
Authority's redevelopment counsel relating to TIP district qualification
and creation, financial feasibility analysis of the Project and drafting and
negotiation of the Redevelopment Agreement and related documents.
(c) 111e Redeveloper has made a deposit of $15,000.00 to be applied by the Authority
to reimburse costs and fees incurred by the Authority for which the Redeveloper
is responsible under Paragraph 4(b)(3). The Redeveloper shall replenish this
deposit when the balance falls below $1,000.00 upon request by the Authority.
(d) In accordance with City policy, the Redeveloper will pay all normal and
customary City fees associated with the plan review and approval process.
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Feb-
5. Term of Agreement. This Agreement shall be binding upon the parties until August 10,
2010, unless terminated sooner by the Authority for the Redeveloper's failure to timely
comply with any of the deadlines set forth in Paragraph 3 or by mutual agreement of the
parties.
6. City and Authority Use of Work Product. If the Redeveloper decides not to proceed
with redevelopment of the Site, the Redeveloper shall make available at no cost to the
City and the Authority for their unrestricted use all available non-proprietary work
product, including market analyses, soil and engineering reports, geotechnical reports,
construction budgets and other documentation produced specifically for the Site.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in
each of their names as of the date first above written.
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE, MINNESOTA
By:
President
By:
Executive Director
RYAN COMPANIES US, INC.
By:
Its:
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