09 23 19 EDA MinutesEDA Meeting
Page 1 September 23, 2019
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes September 23, 2019
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:48 p.m.
ROLL CALL Present:
Absent:
Kathi Hemken, President
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
John Elder, Commissioner
Staff Present:
Kirk McDonald, City Manager
Dan Boyum, City Engineer
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Hoffe, seconded by Commissioner Frazier, to
approve the minutes of September 9, 2019. upon vote being taken thereon, the
following voted in favor thereof: Hemken, Frazier, Hoffe; and the following voted
against the same: None; Abstained: London; Absent: Elder; Motion carried.
NEVADA HILLS
ENTERPRISES, LLC
(DBA AUTOMOTIVE
CONCEPTS)
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
contract for private redevelopment with and awarding the sale of, and providing
the form, terms, covenants and directions for the issuance of its tax increment
revenue note to Nevada Hills Enterprises, LLC (dba Automotive Concepts).
Mr. Jeff Sargent, director of community development, stated at the September 9
EDA meeting, the EDA supported establishment of a TIF district for Automotive
Concepts located at 2919 Nevada Avenue North. It is necessary to approve a
redevelopment contract with Nevada Hills Enterprises, LLC. 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 conducted an analysis of the developer’s pro forma and determined that
EDA Meeting
Page 2 September 23, 2019
the redevelopment TIF district can support $150,000 of funding over nine years.
He stated the developer is required to maintain the business in the space through
the term of the TIF note and will be required to provide proof of business
operation to the EDA annually. He reviewed the terms of the TIF agreement: the
developer will receive a pay‐as‐you‐go note for $150,000; the term of the note will
be 9 years; interest will be set at 4.45%, developer will receive 90% of the tax
increment generated (EDA retains 10% for administrative costs); payment dates
are expected to be August 1, 2022, through February 1, 2031; note may be assigned
to a third party and EDA consents to the assignment conditioned upon receipt of
an investment letter from the third party.
Mr. Sargent recommended that the EDA approve the resolution establishing the
terms of the TIF contract.
Ms. Martha Ingram, the city’s redevelopment attorney with Kennedy & Graven,
was recognized.
Commissioner London commented that he believes a nine‐year note is reasonable.
Mr. Sargent commented that staff defers to Ehlers’ analysis. He noted Automotive
Concepts graciously accepts any amount of assistance.
Ms. Ingram confirmed that Ehlers is addressing the city’s best interest and not
approving more than the TIF district can support.
RESOLUTION 2019‐09
Item 4
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION APPROVING CONTRACT FOR PRIVATE
REDEVELOPMENT WITH AND AWARDING THE SALE OF, AND
PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR
THE ISSUANCE OF ITS TAX INCREMENT REVENUE NOTE TO NEVADA
HILLS ENTERPRISES, LLC (DBA AUTOMOTIVE CONCEPTS).” 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, Frazier, Hoffe, London; and the following voted against the same: None;
Abstained: None; Absent: Elder; 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 7:54 p.m.
Respectfully submitted,
Valerie Leone, City Clerk