011110 EDACITY OF NEW HOPE
EDA MEETING
VTea City Hall, 4401 Xylon Avenue North
January 11, 2010
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 August 10, 2009
4. Discussion regarding loan request to assist with gas tank removal at 7231 42 °a
Avenue North
5. 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)
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes August 10, 2009
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 8:00 p.m.
ROLL CALL Present: Kathi Hemken., President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Daniel Stauner, Commissioner
Staff Present: Kirk McDonald, City Manager
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Jason Quisberg, City Engineer
Steve Sondrall, City Attorney
Eric Weiss, Community Development Assistant
APPROVE MINUTES Motion was made by Commissioner Elder, seconded by Commissioner Hoffe,
to approve the Regular Meeting Minutes of February 9, 2009. Voting in
favor. Hemken, Elder, Hoffe, Stauner; Voting against: None; Abstained:
Lammle; Absent: None. Motion carried
IMP PROJECT 842 President Hemken introduced for discussion Item 4, Resolution approving an
Item 4 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).
Mr. Kirk McDonald, city manager, noted the Council work session with Ryan
Companies was held June 13 (not July 13). He stated at that time it was the
consensus of the Council to extend the interim agreement with Ryan
Companies to allow the developer to continue to explore the feasibility of the
City Center redevelopment.
Mr. McDonald reported that the City Council met with the Robbinsdale
School Board prior to tonight's meeting and was advised of the School
Board's continued interest in a possible relocation of their administration
building at the corner of 42nd and Winnetka.
Mr. McDonald pointed out Item 3(i) of the agreement and expressed
uncertainty that a zoning application will be submitted by October 15, 2009.
The EDA reviewed the Amended and Restated Interim Agreement and
directed staff to delete the first sentence of Item 3(i); to change the second
EDA Meeting
August 10, 2009
Page 1
sentence to "The Authority and Redeveloper agree that the review of the a�
planning application may take more than 120 days and mutually agree to
extend the review as necessary "; and agree to a six month extension instead of
a year extension (amend page 1 and Item 5 on page 5 to February 10, 2010).
Commissioner Hoffe inquired regarding the costs described in item 4. City
Attorney Sondrall clarified that the city has agreed to 50% of the costs
incurred related to utilization of the financial consultant for the TIF District
qualification.
MOTION Motion was made by Commissioner Elder, seconded by Commissioner
Item 4 Lammle, to approve the amended interim agreement with a six month
extension. All present voted in favor. Motion carried.
ADJOURNMENT Motion was made by Commissioner Lammle, seconded by Commissioner
Elder, to adjourn the meeting. All present voted in favor. Motion carried The
New Hope EDA adjourned at 8:12 p.m.
Respectfully submitted,
ar
Valerie Leone, City Clerk
EDA Meeting
August 10, 2009
Page 2
EDA
Originating Department
Approved for Agenda ' Agenda Section
Community Development January 11, 2010 EDA
Item No.
Curtis Jacobsen, Director of CD
Kirk McDonald,
Discussion regarding loan request to assist with gas tank removal at 7231 42nd Avenue North.
4
Requested Action
Staff has been contacted by Ms Sara L. Vinas, the Contract Manager for MDW Equity LLC the owner of 7231
42nd Avenue North. They have requested a loan from the city to assist in removing buried gas tanks on the
property. They request that the Council consider this request and provide a response.
Policy /Past Practice
Past practice of the Council is to consider each request for business loans on a case by case basis.
Background
Ms Vinas contacted the city in late November to discuss a possible loan from the city to allow the owner to
remove the buried gas tanks at this location. The request is for $16,445.00 for tank removal as documented by
the quote from Minnesota Petroleum Services, Inc.
Ms Vinas readily admitted in our phone conversation that they have no prospective tenants for the building
and that the owner cannot afford to remove the tanks on their own at this time. The letter from Ms Vinas
suggests that various tenants maybe interested in the site if the owner can get the tanks removed.
Funding
Potentially EDA funds are available for this business loan. This request does not meet the minimum
requirements of the City of New Hope Business Subsidy Policy.
Motion by
Im
Second by
I: \RFA \PLANNING \PLANNING\ WS -Consider purchase 9- 21- 09.doc
Request for Action
January 11, 2010
Page 2
Recommendation
Staff suggests that the City Council view the parcel and give serious consideration to whether it fits into
future redevelopment plans for the area.
Attachments
• Letter MDW Equity LLC
• Business Subsidy Policy
• Parcel data for Taxes Payable 2009
• Site map
• Photos
December 10,2OD
Mr. Curtis Jacobsen
Director mfCommunity Development
City of New Hope
44O1Xv|on Avenue North
New Hope, K4N 55420
Re: Potential Development of the property at723142 n Ave- North; New Hope, MN
Dear Mr. Jacobsen:
It was a real plea speak with you recently, regardi the above-referenced pro
Aa| mentioned, [WDVV Equity part of group ofcompanies run bvonexperienced
commercial developer. yNUVV purchased this and other properties in the anticipation ofselling
them tu major cornnleroim|tenantsxvithwhom the developer already has relationships and built,
sold, or leased properties to: Walgreens, Burger King, McDonald's, CVS, Dollar General, KFC,
AOtuzODe and Advance Auto.
Unfortunately, due to the presence of the underground -storage tanks at this and other sites, these
commercial tenants have been reluctant to pursue development onthis and other properties.
Removal of the tanks would make the property much more attna<tive and salable,
However, with the downturn inthe economy the developer has been unable to obtain monies to
remove the tanks and thus it is pursuing other potential avenues of funding, The lowest bid
received ($10.445.0O)in attached for your review and information.
|f New Hope has the capacity ba assist KXDVV with. this funding, it would be a great benefit tothe
city and its residents, |n place ofam abandoned gas station there would be8 new hacU(b/
providing goods and/or services to the cumrDun�x, '
I think you would agree that future use would be a "win" for everyone involved.
Thank you very much for your time and consideration. lf you need further information regarding
the level of experience of this developer, and its success in selling properties, | will be happy to
assist you with that information.
IVIDWBu
Sara VVinas
Contracts Manager
s V J f - T f L
9 ve NE
Columbia Heights, MN ti5421
Phone: 763 -780-51
Fax: 763 -780 -8472
Custome ., Shara Vinas Proposal
2760 North University Drive
Davies, Ft, 330$4
954 499 8863 ext 236
r'AUL PW 03
Date: November 20, 200
RE: Tank Removal 723142 " Ave North, New Hope, MN 56428
Minnesota Petroleu Service is a leased to affar thm nrnnr%eaT for %,^i— nnnbcr7n�..e:,,u
QT ,vu� 4VIi.TILIGi000Ii
description
--
#trim site one (1) 1Q,QCtO gallon unleaded tank, one 8,000 gallon mid grade unleaded tank, one (1) 8,000
tlons super unleaded. TMY
1 Glear product lines and remove from ground. 'ranks have 2,970.Ot�
approximately 6" of gasoline /gasoline water. Purge tank of t
va aors. Excavate to top of tanks, open tank and enter -- clean
inside and prepare to remove from ground. Cut hole (one) in
bottom of tank to allow for envirbnMentpf sampling
Pumped tanks free of gasoline 1 gasoline water and disposed
of per MPCA requirements included in prig (up to 775
anon ). Additional liquids will be Invoiced at _75 t aflbn.
W will remove concrete over tank and piping approximatel y
1740 sq feet. No saw cutting will be done. Remove concrete
$11,676.00
rui;)bie from site and dispose of.
Complete eXaction for removal of tank and product piping
for around. Existing vent pipinq will remain in the a round,
Backfifl excavation and backfill to grade - no surface
re.(Aorabon included.
Remove and dispose of three $island tits enacts.
1 Environmental sampling of sofas assuming 11 GROIPOVC
samples, one day field work and provide fetter report. Pricing
lamed on clean site closure, if contamination is encounter
1 E375.D0
additional cost will be incurred. Owner to work direct with
enAronrnental company if contamination is encountered.
Nimbursemient ftr contaminated soils may be reimbursable
fm -n state Petro Fund.
1 Acquire New Hop 'Special hazard Permit for tank removal.
X125 0�
Prt }vide owner with MPCA "orange of status" form to be
signed and mailed into stag of Minnesota MPCA, Joan
He na tai PCA hone number 651 757 2429_
... Total
$16,445.05
a�nr rc 1 mi
Minnesota Petroleum Service, Inc.
��r cvr �uu.i iv. Gv rvaf GU04 f4 MIN r tIIKU !-A5E 03/03
Pricing based on work to be started the week of December 14, 2009, 1 do not anticipate frost to
be an issue if none before January, January and after we Nvilt need to address frost, frozen soils
and adverse weather conditions which could muse an increase in pricing, Thank you far the
opportunity to he of service, please call if you have any questions.
Steven Hanson
Shan,'MM anpetro.com
Terms goon paymant pf 50 with signed contract Balance ret 21 day$ from invr lce *date W th aPsraved credit, taxes
and freight , ncluded e. This proposal is J'mitvd to 30 day$ fmm the above date_ Subject to verification thereafter,
Acceptance of Proposal
The above prices, specificatlons and t ontll #arts are satlsfaatory and hemby accepted. you are 8uthorbted to
provide tht � above equipment or sernjce as spect3let#, Payment wt11 b8 matte as ooHined above.
Signature: Date-
CITY OF NEW HOPE
POLICY FOR BUSINESS SUBSIDIES
Purpose: The purpose of this policy i to set guidelines that would enable the City of New Hope
to comply with Minnesota Statutes 116J.93, et seq.
Objective: The objective of the City of New Hope is to attract and enhance commercial and
industrial development hereby increasing or retaining employment opportunities for New Hope
residents and developing the job base and tax base of the City.
Deflnitions.-
A. Business Subsidy. A business subsidy means a state or local government agency
grant, contribution ofpersonal property, real property, infrastructure; the principal amount
of a loan at rates below those commercially available to the recipient, any reduction or
deferral of any tax or fee, any guarantee of any payment under any loan, lease, or other
obligation, or any preferential use of government facilities given to a business.
A Comprehensive Health Insurance is defined as:
Employer 100% premium payment for individual coverage or 80%
premium payment for family coverage;
Employer minimum payment of 80% for office visits, emergency care,
surgery and prescriptions;
A maximum yearly deduction of $1,000; and
Maternity coverage,
C. Living Wage will be defined as 125 % of the federal poverty level for a family of
four. Businesses that provide employer-paid comprehensive health insurance may pay a
living wage as defined at 110% of the federal poverty level for a family of four.
D- Responsible Labor Relations are defined as neutrality on union organizing,
providing a complete and accurate list of names and addresses of employees, reasonable
access to employees and facilities during non-working periods, voluntary recognition based
on a card check demonstrating that a union represents a majority of employees i a
bargaining unit, and binding arbitration on the first contract.
-3-
Procedure. This policy will be used for business subsidies that equal or exceed $25,000. In the
event a subsidy is in excess of $100,000, the determination shall be preceded by a public hearing.
A proposed subsidy shall be considered to offset land costs, site development, building costs and
design specifications that exceed the City's maximum requirements.
Minimum Requirements: A recipient of a business subsidy must meet the following minimum
requirements. Any deviation from these minimum requirements shall be documented in a written
resolution setting forth the reasons for the deviation. A certified copy of said resolution shall be
attached to the next DTED annual report. The City shall evaluate each request for a business
subsidy based on the best interests of the City and its residents. In determining whether to
approve a subsidy, the City shall consider facts it deems appropriate, which shall include the
following.
1. A business subsidy must have a defined public purpose which may include, but not be
limited to, increasing the tax base of the City. Job retention may also be a valid public
purpose if the job loss is specific and demonstrable.
2. Proposals for direct loans must be unable to obtain full private financing before applying
for city funding.
3. Loan guarantees must have participation by a private lender to assume at least 50 % of the
risk.
4. Business subsidies in the form of grants must be structured as forgivable loans. For other
types of subsidies, the agreement must state the fair market value of the subsidy to the
business, including the value of conveying property at less than a fair market price, or
other in -kind benefits to the business.
5. A business must set goals to be achieved within two years for the number of jobs that they
will create (or retain when job loss is specific and demonstrable) and the wages that these
jabs will pay. Businesses must create (or retain) one full -time living wage job per $50,000
of assistance. Jobs will only be considered created if they are in addition to the highest
number of employees that the business has had in the 18 months prior to receiving the
subsidy.
6. A business must have a goal for the percentage of new jobs that will be held by City
residents.
I. After a public hearing, if the creation or retention of jobs is determined not to be a goal,
the wage and job goals may be set at zero.
me
8. The commitment of the proposed development to continue operations at the site where the
subsidy is used for at least five years after the benefit date,
9. The ability of the proposed development to fulfill or provide a desired amenity, facility or
service that is not provided by the City.
10. The business must disclose any potential adverse impact on the environment that could
result from this project.
Exceptions to Criteria: Consistent with Minnesota Statutes 116J.993, Subdivision 3, the following
forms of financial assistance are not a business subsidy, and recipients will not typically be
required to meet the criteria for business subsidies set forth in this policy statement.
1. Business subsidy of less than $25,000;
2. Assistance that is generally available to all businesses or to a general class of similar
business, such as a line of business, size, location, or similar general criteria;
3. Public improvements to buildings or lands owned by the state or local government that
serve a public purpose and do not principally benefit a single busines"S' or defined group of
businesses at the time the improvements are made;
4. Redevelopment property polluted by contaminants as defined in Minnesota Statutes,
Section 1167.552, Subdivision 3;
5. Assistance for designated historic preservation districts or assistance provided for the sole
Purpose of renovating old or decaying building stock or bringing it up to code, provided
that the assistance is equal to or less than 50 percent of the total cost;
6. Assistance to provide job readiness and training services if the sole purpose of the
assistance is to provide those services;
7. Assistance for housing;
& Assistance for Pollution control or abatement, including a hazardous substance tax
increment financing subdistrict as defined in Minn. Stat, § 469.174(23);
9. Assistance for energy conservation;
0. Tax reductions resulting from conformity with federal tax law;
11. Worker's compensation and unemployment compensation;
12. Benefits derived from regulation;
13. Indirect benefits derived from assistance to educational institutions;
14. Funds from bonds allocated under Minnesota Statutes, Chapter 474A, bonds issued to
refund outstanding bonds and bonds issued for the benefit of an organization described -in
section 501(c)(3) of the Internal Revenue Code of 1986, as amended;
15. Assistance for a collaboration between * a Minnesota higher education institution and a
business;
16. Assistance for a tax increment financing soils condition district as defined under Minnesota
Statutes, Section 469.174, Subdivision 19;
17. Redevelopment when the recipient's investment in the purchase of the site and in site
preparation is 70 percent or more of the assessor's current year's estimated market value;
-5-
18. General changes in tax increment financing law and other generated tax law changes of a
principally technical nature;
19. Federal assistance until the assistance has been repaid to, and reinvested by, the state or
local government agency;
20. Funds from dock and wharf bonds issued by a seaway port authority;
21. Business loans and loan guarantees of $75,000 or less;
22. Federal loan funds provided through the United States Department of Commerce,
Economic Development Administration; and
23. Any other forms of assistance that may be defined by law as not constituting a business
subsidy under Minnesota Statutes, Section 1167.993, Subdivision 3.
Preferences: All other things being equal and to the extent legally possible, preference will be
given to applicants meeting the following criteria:
1. Businesses that contribute to employee child care and retirement accounts;
2. Businesses that are locally owned;
3. Businesses that engage in responsible labor relations;
4. Businesses that have a goal that 25% or more of the new jobs 'W"iI be held by City
residents;
5. Businesses that have traditionally paid living wages.
MAftorneYkCnh Resoludow\Rcm Eel Business SWnidy CrIterla - EDA,wpd
[a
1,16,i.993, Nfinnesota Statutes 2007
Page 1 of 2
in Usota Legislature Home i Links to the —srid i Help i Advc na;d camh
fwd of the Revisor of Statutes
rzouse I S,encte i .,{ dint Di cpaarlvai Its F,nd Cc;rnrn[ss!on i :: Sill Avrc-h and Stalus i S'.F3iU .t3S, I ci%'5, and Rules
Minnesota Statutes Table of Chapters Chapte A6 - Table o f Contents
Copyright O 2007 by the Office of Revisor of Statutes, State of Minnesota.
116J.993 DEFINITIONS.
Subdivision 1. Scope. For the purposes of sections 1161993 to 1161.995 the terms defined
in this section have the meanings given them.
Subd. 2. Benefit date. 'Benefit date" means the date that the recipient receives the business
subsidy. If the business subsidy involves the purchase, lease, or donation of physical equipment,
then the benefit date begins when the recipient puts the equipment into service. If the business
subsidy is for improvements to property, then the benefit date refers to the earliest date of either:
()) when the improvements are finished for the entire project; or
(2) when a business occupies the property. If a business occupies the property and the
subsidy grantor expects that other businesses will also occupy the same property, the grantor may
assign a separate benefit date for each business when it first occupies the property.
Subd. 3. Business subsidy. "Business subsidy" or "subsidy" means a state or local
government agency grant, contribution of personal property, real property, infrastructure, the
principal amount of a loan at rates below those commercially available to the recipient, any
reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or
other obligation, or any preferential use of government facilities given to a business.
The following forms of financial assistance are not a business subsidy:
(1) a business subsidy of less than $25,000;
(2) assistance that is generally available to all businesses or to a general class of similar
businesses, such as a line of business, size, location, or similar general criteria;
(3) public improvements to buildings or lands owned by the state or local government
that serve a public purpose and do not principally benefit a single business or defined group of
businesses at the time the improvements are made;
(4) redevelopment property polluted by contaminants as defined in section 1161552,
subdivision 3 ;
(5) assistance provided for the sole purpose of renovating old or decaying building stock
or bringing it up to code and assistance provided for designated historic preservation districts,
provided that the assistance is equal to or less than 50 percent of the total cost;
(6) assistance to provide job readiness and training services if the sole purpose of the
assistance is to provide those services;
(7) assistance for housing;
(8) assistance for pollution control or abatement, including assistance for a tax increment
financing hazardous substance subdistrict as defined under section 469.174 subdivision 23 ;
(9) assistance for energy conservation;
(10) tax reductions resulting from conformity with federal tax law;
(11) workers' compensation and unemployment insurance;
http: / /www.revisor.leg. state. mn. us / bin /getpub.php ?pubtypc =STAT_CHAP SEC&;year= 2007&ser,tion =l1... 2/5/2008
16.993, Minnesota Statutes 2007
(12) benefits derived from regulation;
13) indirect benefits derived from assistance to educational institutions;
(14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding
bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31, 1999;
(15) assistance for a collaboration between a Minnesota higher education institution and a
business;
(16) assistance for a tax increment financing soils condition district as defined under section
469.174 subdivision 19
(17) redevelopment when the recipient's investment in the purchase of the site and in site
preparation is 70 percent or more of the assessor's current year's estimated market value;
(18) general changes in tax increment financing law and other general tax law changes of a
principally technical nature;
(19) federal assistance until the assistance has been repaid to, and reinvested by, the state or
local government agency;
(20) funds from dock and wharf bonds issued by a seaway port authority;
(21) business loans and loan guarantees of $75,000 or less;
(22) federal loan funds provided through the United States Department of Commerce,
Economic Development Administration; and
(23) property tax abatements granted under section 469.1813 to property that is subject to
valuation under Minnesota Rules, chapter 8100.
Subd. 4. Grantor. "Grantor" means any state or local government agency with the authority
io grant a business subsidy.
Subd. 5. Local government agency. "Local government agency" includes a statutory or
home rule charter city, housing and redevelopment authority, town, county, port authority,
economic development authority, community development agency, nonprofit entity created by
a local government agency, or any other entity created by or authorized by a local government
with authority to provide business subsidies.
Subd. 6. Recipient. "Recipient" means any for -profit or nonprofit business entity that
receives a business subsidy. Only nonprofit entities with at least 100 full -time equivalent positions
and with a ratio of highest to lowest paid employee, that exceeds ten to one, determined on the
basis of full -time equivalent positions; are included in this definition.
Subd. 6a. Residence. "Residence" means the place where an individual has established a
permanent home from which the individual has no present intention of moving.
Subd. 7. State government agency. "State government agency" means any state agency that
has the authority to award business subsidies.
History: 1999 c 243 art 12 s 1; 2000 c 482 s 1; 2004 c 206 s 52; ISp2005 c 3 art 7 s 1;
2006 c 259 art 4 s 1
Please direct all comments concerning issues or legislation
to your House Member or State Senator
For Legislative Staff or for directions to the Capitol, visit the Contact Us page.
General questions or comments.
Page 2 of 2
http: / /www. revisor. leg. state .mn.us /binigetpub.php ?pubtype =STAY CHAP _SEC &year =2007 §ion =ll... 2/5/2008
printdetails.j sp
Parcel Data for Taxes
Property ID:
17- 118 -21 -24 -0004
Address:
7231 42ND AVE N
Municipality:
NEW HOPE
School Dist:
281
Watershed:
8
Sewer Dist:
02
Owner Name:
MDW EQUITY LLC
Taxpayer Name
MDW EQUITY LLC
& Address:
2760 UNVERSITY AVE N
Qualifying Improvements
DAVIE FL 33024 -2546
Construction year: 1955
Approx. Parcel Size: 120 X 88
Most Current Sales Information
rage l ul l
Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent
arms - length transactions.
Sale Date: October, 2005
Sale Price: $210,000
Transaction Type:
Addition Name:
Lot:
Block:
Metes & Bounds:
Abstract or Torrens:
Tax Parcel Description
ROCKFORD PARK
002
THE N 88 FT OF LOT 1 AND THE N
88 FT OF THAT PART OF LOT 2 LYING
W OF E 7.28 FT THEREOF SUBJECT TO
ROAD
TORRENS
Value and Tax Summary for Taxes Payable 2009
Values Established by Assessor as of J anuary 2, 2008
Estimated Market Value:
$210,000
Limited Market Value:
$210,000
Taxable Market Value:
$210,000
Total Improvement Amount:
$106,000
Total Net Tax:
$6,071.39
Total Special Assessments:
Total Market: $210,000
Solid Waste Fee:
$23.01
Total Tax:
$6,094.40
Relative Homestead
Agricultural
Exempt Status
http: / /wwwl6.co.hennepin.mn.us /pins /printdetails.jsp ?pid= 1711821240004 12/29/2009
Property Information Detail for Taxes Payable 2009
Values Established by Assessor as of January 2, 2008
Values:
Land Market
$104,000
Building Market
$106,000
Machinery Market
Total Market: $210,000
Land Limited
$104,000
Building Limited
$106,000
Total Limited: $210,000
Qualifying Improvements
Veterans Exclusion
Classifications:
Property Type
COMMERCIAL
PREFERRED
Homestead Status
NON- HOMESTEAD
Relative Homestead
Agricultural
Exempt Status
http: / /wwwl6.co.hennepin.mn.us /pins /printdetails.jsp ?pid= 1711821240004 12/29/2009
Hennepin County Property Map Print
,rage i oi i
Hennepin County Property Map - Tax Year: 2009
The data contained on this page is derived from a compilation of records and maps and may contain discrepancies that can only be disclosed by an accurate survey performed by a licensed
land surveyor. The perimeter and area (square footage and acres) are approximates and may contain discrepancies. The information on this page should be used for reference purposes only.
Hennepin County does not guarantee the accuracy of material herein contained and is not responsible for any misuse or misrepresentation of this information or its derivatives.
4215
4216 720D
4211 42 1/2 AVE N (� n_ _ � � _ _.
7180 7140
7300
42ND AVE N
7321 7305
41 1/2 AVE N 1--l 6 6_,_j 'X'.
rn
rn
0
0
z
Selected Parcel Data Date Printed: 12/29/2009 11:18:52 AM
Parcel ID: 17-118-21-24-0004 Current Parcel Date: 12/412009
Owner Name: MDW EQUITY LLC
Parcel Address: 7231 42ND AVE N, NEW HOPE, MN 55427
Property Type: COMMERCIAL-PREF Sale Price: $210,000-00
Homestead: NON-HOMESTEAD Sale Date: 10/2005
Area (sqft): 10385 Sale Code:
Area (acres): 0.24
A-T-B: TORRENS
Market Total: $210,000.00
Tax Total: $6,094.40
http://gis,co.hennepin.mn.us/HCPropertyMap/Locator.aspx 12/29/2009
412D
4121
4110
4111
4103
4104
Selected Parcel Data Date Printed: 12/29/2009 11:18:52 AM
Parcel ID: 17-118-21-24-0004 Current Parcel Date: 12/412009
Owner Name: MDW EQUITY LLC
Parcel Address: 7231 42ND AVE N, NEW HOPE, MN 55427
Property Type: COMMERCIAL-PREF Sale Price: $210,000-00
Homestead: NON-HOMESTEAD Sale Date: 10/2005
Area (sqft): 10385 Sale Code:
Area (acres): 0.24
A-T-B: TORRENS
Market Total: $210,000.00
Tax Total: $6,094.40
http://gis,co.hennepin.mn.us/HCPropertyMap/Locator.aspx 12/29/2009
z
4120
>
M
z
S z
>
7107
M
720
z
4110
Selected Parcel Data Date Printed: 12/29/2009 11:18:52 AM
Parcel ID: 17-118-21-24-0004 Current Parcel Date: 12/412009
Owner Name: MDW EQUITY LLC
Parcel Address: 7231 42ND AVE N, NEW HOPE, MN 55427
Property Type: COMMERCIAL-PREF Sale Price: $210,000-00
Homestead: NON-HOMESTEAD Sale Date: 10/2005
Area (sqft): 10385 Sale Code:
Area (acres): 0.24
A-T-B: TORRENS
Market Total: $210,000.00
Tax Total: $6,094.40
http://gis,co.hennepin.mn.us/HCPropertyMap/Locator.aspx 12/29/2009
M
' jO� Request for Action
Originating Department i Approved for Agenda ( Agenda Section
Community Development January 11, 2010 EDA
Item No.
By: Curtis Jacobsen, Director of CD By: Kirk McDonald, City Manager 5
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
nroiect 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.
Additionally, it is also a past practice to amend and restate agreements from time to time to more accurately
reflect the progress and details of the project.
Background
The Council met in a work session on December 21 for an informal discussion on the timeline and a possible
extension of the interim agreement. Council consensus was that they favored a six month 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 agreement
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Motion by :I ? /lFt_ Second by
I:\ RFA \ PLANNING \ PLANNING \ City Center amended agreement 8- 10- 09.doc
City of New Hope
EDA Resolution 2010-
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
WHEREAS, late in 2009 all parties, Ryan Companies, School District 281 and the
City of New Hope, mutually agreed to temporarily put the possible
redevelopment of City Center on hold; and
WHEREAS, the current agreement between Ryan Companies and the city expires
on February 10, 2010; and
WHEREAS, all parties have expended enormous amounts of time, resources and
energy in a mutual effort to move this very complicated process forward.
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 11th day of January 2010.
President
Attest:
Executive Director
January 11, 2010
AMENDED AND RESTATED
INTERIM AGREEMENT
This AMENDED AND RESTATED INTERIM AGREEMENT entered into effective the
11th day of January, 2010, 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 ") for the Site
and has requested that the Authority negotiate exclusively with the Redeveloper while the
Project is being studied.
WHEREAS, the Redeveloper has initially suggested a first phase ( "Phase 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 August 10, 2010, provided that deadlines for certain milestones described
below are met.
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
( "TIF ") 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 TIF 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 concerns.
(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 TIF 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, 2008, the Authority's redevelopment counsel will complete its initial
analysis of projected TIF 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 TIF 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 28, 2008, 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) The Authority and Redeveloper agree that the review of any planning
application may take more than 120 days and mutually agree to extend the
review as necessary.
(j) After the reactivation of the redevelopment project, 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 1A and 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 a
binding contractual agreement to acquire the school district's facilities at 4124
and 4148 Winnetka Avenue for redevelopment as the first possible phase of a
city center redevelopment.
(1) The Redeveloper will continue to work with the City to refine its redevelopment
plans for Phase 1A, and the City and Redeveloper will continue to work together
to refine the TIF 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 of 42nd and Winnetka avenues.
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 TIF district qualification
and creation, financial feasibility analysis of the Project and drafting and
negotiation of the Redevelopment Agreement and related documents.
(c) The 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.
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(d) In accordance with City policy, the Redeveloper will pay all normal and
customary City fees associated with the plan review and approval process.
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
Executive Director
RYAN COMPANIES US, INC.
By:
Its:
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