IP #737DOUGLAS J. DEBNER'
GORDON L. JENSEN'
GLEN A. NORTON
STEVEN A.SONDRALL
WILLIAM C. STRAIT' -
STACY A. WOODS
OF COUNSEL
LORENSQ.BRYNESTAD
'Real Property Law Specialist
Certified By The
Minnesota State Bar
Association
'Qualified ADR Neutral
'Admitted in Iowa
Attorneys At Law
January 29, 2003
Valerie Leone
City Clerk
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443 -1968
TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193
e -mail law@ j ensen- sondrall.com
Re: Economic Development Authority in and for the City of New Hope, Minnesota
v. Ahrens Enterprises, LLC, et al.
Our File No.: 99.53073
Dear Val:
Enclosed herewith and served upon you by United States mail is the Economic
Development Authority in and for the City of New Hope's Notice of Hearing and Notice
of Motion for Appointment of Commissioners and for Transfer to Title and Possession
under Minn. Stat. §117.042. Also enclosed is a copy of the Petition and an
Acknowledgement of Service by Mail. Please sign and return the Acknowledgement of
Service by Mail in the envelope provided.
Thank you for your attention to this hatter.'
Very truly yours,
Steven A. Sondrall, City Attorney,
City of New Hope
JENSEN & SONDRALL, P.A.
sas@jeiiseii-soiidrall.com
After Hours Extension #147
Enclosures
P:AALtomcy \SAS \LettersVCNH99.53073 - 007 -City of New Hopc Ltr.doc
STATE OF MINNESOTA
COUNTY OF HENNEPIN
DISTRICT COURT
FOURTH JUDICIAL DISTRICT
Case Type: Condemnation
Court File No. CD 2699
The Economic Development Authority in and
for the City of New Hope, Minnesota, a
Minnesota municipal corporation,
Petitioner,
0
Ahrens Enterprises, LLC, a Minnesota
limited liability company, Ahrens Trucking,
Inc., a Minnesota corporation, Ahrens
Trucking, Inc., a Minnesota corporation
D /B /A Russell Delivery, Wells Fargo Bank
Minnesota, N.A., Qwest Communications
Corporation, a Delaware corporation, Qwest
Corporation, a Colorado corporation, Xcel
Energy Inc., a Minnesota corporation,
Centerpoint Energy Minnegasco, a division
of Centerpoint Energy Resources Corp., a
Delaware corporation, City of New Hope, a
Minnesota municipal corporation, and
County of Hennepin, a Minnesota municipal
corporation,
O • A ! 1
POSSESSION UNDER
MINN. STAT. 0,
Respondents.
IN THE MATTER OF
THE CONDEMNATION OF CERTAIN REAL ESTATE
IN THE COUNTY OF HENNEPIN, STATE OF MINNESOTA,
FOR ECONOMIC DEVELOPMENT PURPOSES
1
TO: ALL RESPONDENTS NAMED HEREIN:
YOU, AND EACH OF YOU, ARE HEREBY NOTIFIED that on March 17, 2003, or as
soon thereafter as this matter may be heard, at the Hennepin County Government Center, 300
South Sixth Street, Minneapolis, Minnesota, before the Honorable John L. Holahan, one of the
judges of the above -named Court, the Economic Development Authority in and for the City of
New Hope, Minnesota (hereafter "Petitioner ") will present its Petition for the condemnation of
certain property situated in New Hope, Minnesota, for the purpose of acquiring fee simple
absolute title to the real estate described in Exhibit A of the accompanying Petition.
Said real property is being acquired for economic development purposes. Specifically, for
the development and construction of a 100,000 square foot building expansion, as described in the
Petition, in New Hope, Minnesota. The property is necessary to promote the objectives of the
Restated Redevelopment Plan and Tax Increment Financing Plan for Tax Increment Financing
District No. 02 -1 and for Redevelopment Project No. 1.
The Petition prays for the appointment by the Court of three (3) commissioners to ascertain
and report the damages for the real property to be taken and acquired for the purposes aforesaid
and the injuries caused by such taking.
The real property and the interests therein that are desired and proposed to be taken are
described in Exhibit A to the Petition, together with the names of all persons appearing of record
or known to the Petitioner to be the owners of said real property or interested herein, including all
of whom your Petitioner has been able by investigation and due inquiry to discover, together with
the nature of the ownership as nearly as can be ascertained.
YOU, AND EACH OF YOU, ARE FURTHER NOTIFIED, that on March 17, 2003, or
as soon thereafter as this matter may be heard at the above place, the Petitioner will also move the
Court for an Order transferring title and the right to possession of the lands described in Exhibit A
of the Petition in accordance with Minn. Stat. § 117.042, as amended, effective at the earliest quick
take date available, but no earlier than March 21, 2003, but before taking title and possession,
Petitioner will pay to the owners or deposit with the Court an amount equal to Petitioner's
approved appraisal of value.
Notwithstanding anything to the contrary contained herein, should tests or evaluations
undertaken by or on behalf of the Petitioner indicate the possible presence of pollutants,
contaminants or hazardous substances on any of the real property described in Exhibit A of the
Petition, Petitioner reserves the right to defer effecting the transfer of title of the real estate
interests described in Exhibit A pursuant to Minn. Stat. § 117.042, for a reasonable time until
Petitioner can evaluate whether it wishes to proceed with the taking or abandon the proceedings
and dismiss the Petition herein.
Petitioner further prays for an Order of this Court pursuant to Minn. Stat. § 117.042,
authorizing entry by Petitioner and its employees and agents onto the real property described in
Exhibit A, upon reasonable notice to the owners and occupants thereof, for the purpose of such
appraisals, surveys, tests, soil borings, inspection and other evaluations as Petitioner may elect.
Petitioner will serve and file its papers in support of these motions within the time frames
provided under the General Rules of Practice.
Dated: January �19 2003.
JENSEN & SONDRALL, P.A.
0`�, A""
By: <:-- 1-1
Steven A. Sondrall, #103391
Attorney for Petitioner
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424 -8811
3
ACKNOWLEDGMENT
The party upon whose behalf this pleading is submitted, by and through the undersigned,
hereby acknowledges that sanctions may be imposed for a violation of Minn. Stat. §549.211.
Dated: January 2 ,f , 2003.
JENSEN & SONDRALL, P.A.
By: Z— �Z
Steven A. Sondrall, #103391
Attorney for Petitioner
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424 -8811
P:\Attomey \SAS \Documents \CNH99.53073 -004- Notice of Hearing.doc
11
i
The Economic Development Authority in
and for the City of New Hope, Minnesota,
a Minnesota municipal corporation,
Petitioner,
V.
Ahrens Enterprises, LLC, a Minnesota
limited liability company, Ahrens
Trucking, Inc., a Minnesota corporation,
Ahrens Trucking, Inc., a Minnesota
corporation, D /B /A Russell Delivery, Wells
Fargo Bank Minnesota, N.A., Qwest
Communications Corporation, a Delaware
corporation, Qwest Corporation, a
Colorado corporation, Xcel Energy Inc., a
Minnesota corporation, Centerpoint Energy
Minnegasco, a division. of Centerpoint
Energy Resources Corp., a Delaware
corporation, City of New Hope, a
Minnesota municipal corporation, and
County of Hennepin, a Minnesota
municipal corporation,
Respondents.
1W
IN THE MATTER OF
THE CONDEMNATION OF CERTAIN REAL ESTATE
IN THE COUNTY OF HENNEPIN, STATE OF MINNESOTA,
FOR ECONOMIC DEVELOPMENT PURPOSES
TO THE ABOVE -NAMED COURT:
t
1 t '
FOURTH JUDICIAL DISTRICT
Case Type: Condemnation
Court File No.
Petitioner respectfully represents and alleges as follows:
f .
1. Petitioner is a municipal corporation duly organized and existing under the laws
of the Sate of Minnesota,
2. Petitioner has assumed control of various Redevelopment Plans, Redevelopment
Projects and Tax Increment Financing Districts originally created by the New Hope HRA per
the authority of Minn. Stat. §469.094, Subd. 2.
3. Petitioner seeks to acquire fee simple title to Respondent Ahrens Enterprises'
property located at 7600 - 49' Avenue North in the City of New Hope, County of Hennepin,
State of Minnesota, and legally described in Exhibit A hereto attached. This property is
necessary to the successful completion and development of Restated Redevelopment Plan for
Redevelopment Project No. 1 and new Tax Increment Financing District No. 02 -1 as more
fully described herein. The property is also necessary for the development and construction of
the 100,000 square foot building expansion for the Navarre Corporation proposed by New
Hope, LLC, a Minnesota limited liability company, hereafter Redeveloper, as described
below.
4. Petitioner has, pursuant to EDA Resolution No. 02 -05 (attached hereto as
Exhibit B) caused a restatement of its various Redevelopment Plans as a Master Modification.
Resolution No. 02 -05 redesignated this Master Modification as Redevelopment Project No. 1.
Further, Resolution No. 02 -05 modified the Restated Redevelopment Plan for
Redevelopment Project No. 1 by reflecting increased geographic area, increased project costs
and increased bonding authority. Resolution No. 02 -05 also modified in the same manner the
existing Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 80 -2, 81-
1, 82 -1, 85 -1, 85 -2 and 86 -1. Finally, Resolution No. 02 -05 created a new Tax Increment
2
1. Petitioner is a municipal corporation duly organized and existing under the laws
of the Sate of Minnesota,
2. Petitioner has assumed control of various Redevelopment Plans, Redevelopment
Projects and Tax Increment Financing Districts originally created by the New Hope HRA per
the authority of Minn. Stat. §469.094, Subd. 2.
3. Petitioner seeks to acquire fee simple title to Respondent Ahrens Enterprises'
property located at 7600 - 49' Avenue North in the City of New Hope, County of Hennepin,
State of Minnesota, and legally described in Exhibit A hereto attached. This property is
necessary to the successful completion and development of Restated Redevelopment Plan for
Redevelopment Project No. 1 and new Tax Increment Financing District No. 02 -1 as more
fully described herein. The property is also necessary for the development and construction of
the 100,000 square foot building expansion for the Navarre Corporation proposed by New
Hope, LLC, a Minnesota limited liability company, hereafter Redeveloper, as described
below.
4. Petitioner has, pursuant to EDA Resolution No. 02 -05 (attached hereto as
Exhibit B) caused a restatement of its various Redevelopment Plans as a Master Modification.
Resolution No. 02 -05 redesignated this Master Modification as Redevelopment Project No. 1.
Further, Resolution No. 02 -05 modified the Restated Redevelopment Plan for
Redevelopment Project No. 1 by reflecting increased geographic area, increased project costs
and increased bonding authority. Resolution No. 02 -05 also modified in the same manner the
existing Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 80 -2, 81-
1, 82 -1, 85 -1, 85 -2 and 86 -1. Finally, Resolution No. 02 -05 created a new Tax Increment
2
Financing District No. 02 -1 within the Redevelopment Project No. 1 and approved the Tax
Increment Financing District Plan relating thereto.
5. The New Hope City Council has, pursuant to Resolution No. 02 -132 (attached
hereto as Exhibit C), approved Petitioner's action taken by EDA Resolution No. 02 -05.
6. The Commissioners of the Petitioner and the Members of the New Hope City
Council, acting as the governing board of Petitioner, have made findings, as set out in their
respective resolutions attached, concluding among other things:
a. The assistance to be provided by the Restated Redevelopment Plan, the
existing Tax Increment Financing Plans and the new Tax Increment Financing Plan,
hereinafter collectively the Plans, are necessary to assure the redevelopment of
Redevelopment Project No. 1;
b. The Petitioner's and the New Hope City Council's collective actions
taken on the Plans conform to the general development and redevelopment plans of the
City and are consistent with the City's Comprehensive Plan;
C. The Plans afford maximum opportunity for development and
redevelopment of Redevelopment Project No. 1 by private enterprise pursuant to
redevelopment contracts with private developers;
d. Tax Increment Financing District No. 02 -1 constitutes a "tax increment
financing district" as defined in Minn. Stat. §469.174, Subd. 9, and further constitutes
an "economic development district" as defined by Minn. Stat. §469.174, Subd. 12;
e. The development of Tax Increment Financing District No. 02 -1 would
not occur solely through private investment and therefore requires tax increment
financing;
3
f. The above findings, in the opinion of the Petitioner and the New Hope
City Council, will promote the City's public purposes and objectives as stated in the
Plans supported by the factual determinations as set out in Exhibit A to Resolution No.
02 -132.
7. Petitioner has also entered into a Contract for Private Redevelopment dated as of
November 12, 2002 (the "Redevelopment Contract ") with the Redeveloper to assist
Redeveloper in the development and construction of the 100,000 square foot building
expansion referred to in paragraph 3, to accommodate the business expansion plans of Navarre
Corporation, a Minnesota corporation (hereinafter Navarre), a major employer within the City.
It is anticipated the building expansion will be done at a project cost, excluding land, of
approximately $4,325,000.00 and will have the effect of creating 40 to 50 new employment
opportunities within the City.
8. The Redeveloper currently owns a parcel of land adjacent to Tax Increment
Financing District No. 02 -1 and must acquire the land described in Exhibit A attached and
currently owned by Respondent Ahrens Enterprises, within the Tax Increment Financing
District No. 02 -1 to construct the proposed building expansion.
9. The acquisition of Respondent Ahrens Enterprises' property is also necessary to
fulfill Petitioner's contractual obligation under the Redevelopment Contract. The acquisition
of the Ahrens Enterprises' property is for a public purpose and will promote the objectives of
the Plan.
10. On November 12, 2002, Petitioner adopted Resolution No. 2002 -10 (attached as
Exhibit D). Resolution No. 2002 -10 authorized the acquisition of the property described in
Exhibit A by eminent domain proceedings.
4
11. The subject property to be acquired through this proceeding is located entirely
within Redevelopment Project No. 1 and Tax Increment Financing District No. 02 -1.
12. The legal description of the land to be taken and the names of those appearing of
record or known to the Petitioner to be the owners of said land or interested therein, including
all whom Petitioner has, by investigation and inquiry, been able to discover, together with the
nature of the ownership of each as can be ascertained, are set forth in Exhibit A attached
hereto and made a part hereof as though fully set out at this point.
13. Petitioner has the legal authority to exercise the power of eminent domain to
acquire the property described in Exhibit A attached hereto pursuant to Minn. Stat.
§ §469.012(6), 469.094(2) and 469101.(4).
WHEREFORE, Petitioner prays for the Order of this Court as follows:
1. Adjudging that said taking is for a public purpose, is necessary, and as such is
authorized by law;
2. Appointing three (3) disinterested commissioners, and at least two (2)
alternatives, residents of Hennepin County, to ascertain and report the amount of damages that
will be sustained by the several owners on account of the taking; fixing the time and place of
the first meeting of the three commissioners; prescribing their compensation; and requiring the
commissioners to file their report with the Clerk of District Court within one hundred eighty
(180) days from the date of this Order appointing the commissioners, unless said time be
further extended by Order of the Court; and
3. For such other and further relief as may be proper and pursuant by law.
Dated: December , ?V , 2002.
5
JENSEN & SONDRALL, P.A.
Steven A. Sondrall, #103391
Attorney for Petitioner
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424 -8811
no
ACKNOWLEDGMENT
The Economic Development Authority in and for the City of New Hope, Minnesota, by
and through its attorneys, acknowledges that costs, disbursements and reasonable attorney and
witness fees may be awarded to the opposing party pursuant to Subd. 2 of M.S.A. §549.21.
Dated: December Z® , 2002.
On ;
A ,,,
S Sw CI C ii.r1
Steven A. Sondrall, #103391
Attorney for Petitioner
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424 -8811
P:\Attorney\SAS\Documents\CNH99.53073-001-Petition.doc
7
s
EXHIBIT "A"
Legal Description
The East 145 feet of the South 1 /a of the Southwest Quarter of the Northwest Quarter of
Section 8, Township 118, Range 21, subject to sewer easement over the East 45 feet of
said premises, as contained in Book 814 of Miscellaneous Records 519.
Interested Party
• Ahrens Enterprises, LLC
• Ahrens Trucking, Inc.
• Ahrens Trucking, Inc., D /B /A Russell Delivery
• Wells Fargo Bank Minnesota, N.A.
• City of New Hope
• Xcel Energy
• Qwest Communications Corporation
• Qwest Corporation
• Centerpoint Energy Minnegasco,
a division of Centerpoint Energy Resources Corp.
• County of Hennepin
Nature of Interest
Fee Owner
Leasehold
Leasehold
Mortgage
Easement
Possible Easement
Possible Easement
Possible Easement
Possible Easement
Real Estate Taxes
P:\ Attorney\ SAS \Doctnneats \CNH99.53073 -001- Exhibit A to Petition (Legal & Interested Parties).doc
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss
CITY OF NEW HOPE )
1, the undersigned, being the duly qualified City Clerk of the City of New Hope, Minnesota,
hereby attest and certify that:
1. As such officer, I have the legal custody of the original record from which
the attached resolution was transcribed.
2. 1 have carefully compared the attached resolution with the original record of
the meeting at which the resolution was acted upon.
3. 1 find the attached resolution to be a true, correct and complete copy of the
original:
EDA RESOLUTION NO, 2002 -05
RESOLUTION RESTATING THE REDEVELOPMENT PLANS FOR THE MASTER MODIFICATION;
REDESIGNATING THE MASTER MODIFICATION AS REDEVELOPMENT PROJECT NO. 1;
MODIFYING THE RESTATED REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLANS
FOR REDEVELOPMENT PROJECT NO. 1 AND TAX INCREMENT FINANCING DISTRICTS NOS, 80 -2,
81 -1, 82 -1, 85 -1, 85 -2, AND 86 -1; CREATING TAX INCREMENT FINANCING DISTRICT NO. 02 -1 AND
ADOPTING A TAX INCREMENT FINANCING PLAN RELATING THERETO
4. 1 further certify that the affirmative vote on said resolution was 4 ayes, 0
nayes, and 1 absent/abstention.
5. Said meeting was duly held, pursuant to call and notice thereof, as required
by law, and a quorum was present.
WITNESS my hand officially as such Clerk and the seal of said City, this 10th day of
December, 2002.
Valerie Leone, City Clerk
(Seal)
CITY OF NEW HOPE
44U1 Xylon Avenue North ® New Hope, Minnesota 55428 -4898 < www. ci.new- hope.mn.us
City Hall: 763 -531 -5100 e Police (non - emergency): 763- 531 -5170 e Public Works: 763 -592 -6777 . TDD: 763 - 531 -5109
City Hall Fax: 763- 531 -5136 e Police Fax: 763- 531 -5174 . Public Works Fax: 763- 592 -6776
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO. oz -os
RESOLUTION RESTATING THE REDEVELOPMENT PLANS FOR THE MASTER
MODIFICATION; REDESIGNATING THE MASTER MODIFICATION AS
REDEVELOPMENT PROJECT NO. 1; MODIFYING THE RESTATED
REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLANS FOR
REDEVELOPMENT PROJECT NO. 1 AND TAX INCREMENT FINANCING
DISTRICTS NOS. 80 -2, 81 -1, 82 -1, 85 -1, 85 -2 AND 86 -1; CREATING TAX
INCREMENT FINANCING DISTRICT NO. 02 -1 AND ADOPTING A TAX
INCREMENT FINANCING PLAN RELATING THERETO.
BE IT RESOLVED by the Board of Commissioners (the "Commissioners ") of
the New Hope Economic Development Authority (the "EDA "), as follows:
Section 1. Recitals
1.01. It has been proposed that the EDA approve and adopt the restatement
of the Redevelopment Plans for the Master Modification.
1.02. It has been further proposed that the EDA redesignate the Master
Modification as Redevelopment Project No 1.
1.03. It has been further proposed that the EDA approve and adopt the
proposed modifications to the Restated Redevelopment Plan (the "Plan ") for
Redevelopment Project No. 1 (the "Project Area ") reflecting increased geographic
area, increased project costs and increased bonding authority pursuant to and in
accordance with Minnesota Statutes Sections 469.001 to 469.047, 469.124 to
469.134 and 469.090 to 469.108., inclusive, as amended and supplemented from
time to time.
1.04. It has been further proposed that the EDA approve and adopt the
proposed modifications to the Tax Increment Financing Plans (the "Existing TIF
Plans ") for Tax Increment Financing Districts Nos. 80 -2, 81 -1, 82 -1, 85 -1, 85 -2 and
86 -1 (the "Existing TIF Districts ") reflecting increased geographic area, increased
project costs and increased bonding authority within the Project Area pursuant to
and in accordance with Minnesota Statutes Sections 469.174 to 469.179 and
469.090 to 469.108, inclusive, as amended and supplemented from time to time.
1.05. It has been further proposed that the EDA approve the creation of
proposed Tax Increment Financing District No. 02 -1 (the "Proposed TIF District")
within the Project Area and approve and adopt the proposed Tax Increment
Financing Plan (the "Proposed TIF Plan") relating thereto pursuant to and in
accordance with ' Minnesota Statutes, Sections 469.174 to 469.179 and 469.090 to
469.108, inclusive, as amended and supplemented from time to time.
1.06. The EDA has caused to be prepared and has investigated the facts
with respect thereto a modified Plan for the Project Area and modified Existing TIF
Plans for the Existing TIF Districts reflecting increased. geographic area, increased
project costs and increased bonding authority within the Project Area, and a
Proposed TIF Plan for the Proposed TIF District defining more precisely the property
to be included, the public costs to be incurred and other matters relating thereto.
1.07. The EDA has performed all actions required by law to be performed
prior to the approval and adoption of the modifications to the Plan and Existing TIF
Plans and the approval and adoption of the Proposed TIF Plan.
1.08. The EDA hereby determines that it is necessary and in the best
interests of the City and the EDA at this time to approve and adopt the modifications
to the Plan and Existing TIF Plans, to create the Proposed TIF District and to
approve and adopt the Proposed TIF Plan relating thereto.
Section 2. Findings.
2.01. The EDA hereby finds that the assistance to be provided through the
adoption and implementation of the modified Plan, modified Existing TIF Plans and
Proposed TIF Plan (collectively the "Plans") is necessary to assure the development
and redevelopment of the Project Area.
2.02. The EDA hereby finds that the Plans conform to the general plan for the
development and redevelopment of the City as a whole.
2.03. The EDA hereby finds that the Plans afford maximum opportunity
consistent with the - sound needs of the City as a whole for the development and
redevelopment of the Project Area by private enterprise and it is contemplated that
the development and redevelopment thereof will be carried out pursuant . to
redevelopment contracts with private developers.
Section 3. Approvals and Adoptions.
3.01. The modifications to the Plan reflecting increased geographic area,
increased project costs and increased bonding authority within the Project Area are
hereby approved and adopted by the Commissioners of the EDA and are forwarded
to the New Hope City Council for public hearing, review and approval.
3.02. The modifications to the Existing TIF Plans reflecting 'increased
geographic area, increased project costs and increased bonding authority within the
Project Area are hereby approved and adopted by the Commissioners of the EDA
and are forwarded to the New Hope City Council for public hearing, review and
approval.
3.03. The creation of the Proposed TIF District within the Project Area and
the adoption of the Proposed TIF Plan relating thereto are hereby approved and
adopted by the Commissioners of the EDA and are forwarded to the New Hope City
Council for public hearing, review and approval.
Section 4. E!!!ng of Plans.
4.01. Upon approval and adoption of the Plans, the EDA shall cause said
Plans to be filed with the Minnesota Department of Revenue.
Adopted by the Commissioners of the EDA this 9th day of
September , 2002.
YES Cassen, Collier, Gwin-Lenth, Norby
NO: --
ABSENT: Enck
PresidenVFtem
ATTEST:
— 0e Z cu d tiv X e - � - Nctor
CERTIFICATION
I y Daniel J. Donahue , Executive Director of the New Hope
Economic Development Authority, County of Hennepin, Minnesota, hereby certify
that the foregoing is a true and correct copy of Resolution No. 02-05 adopted
by the EDA on the 9th day of September 20
Executive Dif'ector
G:\WPDATA\N\NEW H0PE\08\TJF\EDA RESOLUTIONDOC
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss
CITY OF NEW HOPE )
I, the undersigned, being the duly qualified City Clerk of the City of New Hope, Minnesota,
hereby attest and certify that:
1. As such officer, I have the legal custody of the original record from which
the attached resolution was transcribed.
2. 1 have carefully compared the attached resolution with the original record of
the meeting at which the resolution was acted upon.
3. 1 find the attached resolution to be a true, correct and complete copy of the
original:
RESOLUTION NO. 2002 -132
RESOLUTION RESTATING THE REDEVELOPMENT PLANS FOR THE MASTER MODIFICATION;
REDESIGNATING THE MASTER MODIFICATION AS REDEVELOPMENT PROJECT NO. 1;
MODIFYING THE RESTATED REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLANS
FOR REDEVELOPMENT PROJECT NO. 1 AND TAX INCREMENT FINANCING DISTRICTS NOS. 80 -2,
81 -1, 82 -1, 85 -1, 85 -2, AND 86 -1; CREATING TAX INCREMENT FINANCING DISTRICT NO. 02 -1 AND
ADOPTING A TAX INCREMENT FINANCING PLAN RELATING THERETO
4. 1 further certify that the affirmative vote on said resolution was 3 ayes, 0
nayes, and 2 absent/abstention.
5. Said meeting was duly held, pursuant to call and notice thereof, as required
by law, and a quorum was present.
WITNESS my hand officially as such Clerk and the seal of said City, this 10th day of
December, 2002.
(Sea!) Valerie Leone, City Clerk
CITY OF NEW HOPE
4401 Xylon Avenue North ® New Hope, Minnesota 55428 -4898 • www. ci.new- hope.mn.us
City Hall: 763- 531 -5100 e Police (non - emergency): 763- 531 -5170 . Public Works: 763- 592 -6777 s TDD: 763 -531 -5109
City Hall Fax: 763- 531 -5136 e Police Fax: 763 - 531 -5174 e Public Works Fax: 763- 592 -6776
Council Member Cassen introduced the following resolution, the reading of
which was dispensed with by unanimous consent, and moved its adoption:
CITY OF NEW HOPE
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO. 02-132
RESOLUTION RESTATING THE REDEVELOPMENT PLANS FOR THE MASTER
MODIFICATION; REDESIGNATING THE MASTER MODIFICATION AS
REDEVELOPMENT PROJECT NO. 1; MODIFYING THE RESTATED
REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLANS FOR
REDEVELOPMENT PROJECT NO. 1 AND TAX INCREMENT FINANCING
DISTRICTS NOS. 80 -2, 81 -1, 82 -1, 85 -1, 85 -2 AND 86 -1; CREATING TAX
INCREMENT FINANCING DISTRICT NO. 02 -1 AND ADOPTING A TAX INCREMENT
FINANCING PLAN RELATING THERETO.
BE IT RESOLVED by the City Council (the "Council') of the City of New Hope,
Minnesota (the "City "), as follows:
Section 1. Recitals
1.01. It has been proposed and approved by the New Hope Economic
Development Authority (the "EDA ") that the Council approve and adopt the restatement
of the Redevelopment Plans for the Master Modification.
1.02. It has been further proposed and approved by the EDA that the Council
redesignate the Master Modification as Redevelopment Project No 1.
1.03. It has been further proposed and approved by the EDA that the Council;
approve and adopt the proposed modifications to the Restated Redevelopment Plan
(the "Plan ") for Redevelopment Project No. 1 (the "Project Area ") reflecting increased
geographic area, increased project costs and increased bonding authority pursuant to
and in accordance with Minnesota Statutes Sections 469.001 to 469.047, 469.124 to
469.134 and 469.090 to 469.108, inclusive, as amended and supplemented from time
to time.
1.04. It has been further proposed and approved by the EDA that the Council
approve and adopt the proposed modifications to the Tax Increment Financing Plans
(the "Existing TIF Plans ") for Tax Increment Financing Districts Nos. 80 -2, 81 -1, 82 -1,
I
85 -1, 85 -2 and 86 -1 (the "Existing TIF Districts ") reflecting increased geographic area,
increased project costs and increased bonding authority within the Project Area
pursuant to and in accordance with Minnesota Statutes Sections 469.174 to 469.1791
inclusive, as amended and supplemented from time to time.
1.05. It has been further proposed and approved by the EDA that the Council
approve the creation of proposed Tax Increment Financing District No. 02 -1 (the
"Proposed TIF District ") within the Project Area and approve and adopt the proposed
Tax Increment Financing Plan (the "Proposed TIF Plan ") relating thereto pursuant to
and in accordance with Minnesota Statutes Sections 469.174 to 469.1791, inclusive,
as amended and supplemented from time to time.
1.06. The EDA has caused to be prepared and this Council has investigated the
facts with respect thereto a modified Plan for the Project Area and modified Existing TIF
Plans for the Existing TIF Districts reflecting increased geographic area, increased
project costs and increased bonding authority within the Project Area, and a Proposed
TIF Plan for the Proposed TIF District defining. more precisely the property to be
included, the public costs to be incurred and other matters relating thereto.
1.07. The EDA and the Council have performed all actions. required by law to be
performed prior to the approval and adoption of the modifications to the Plan and
Existing TIF Plans and the approval and adoption of the Proposed TIF Plan.
1.08: The Council hereby determines that it is necessary and in the best
interests of the City and the EDA at this time to approve and adopt the modifications to
the Plan and Existing TIF Plans, to create the Proposed TIF District and to approve and
adopt the Proposed TIF Plan relating thereto.
Section 2. Findings
2.01. The Council hereby finds, determines and declares that the assistance to
be provided through the adoption and implementation of the modified Plan, modified
Existing TIF Plans and Proposed TIF Plan (collectively the "Plans ") are necessary to
assure the development and redevelopment of the Project Area.
2.02. The Council hereby finds, determines and declares that the Plans conform
to the general plan for the development and redevelopment of the City as a whole in
that they are consistent with the City's comprehensive plan.
2.03. The Council hereby finds, determines and declares that the Plans afford
maximum opportunity consistent with the sound needs of the City as a whole for the
development and redevelopment of the Project Area by private enterprise and it is
E
1.
�
contemplated that the development and redevelopment thereof will be carried out
pursuant to redevelopment contracts with private developers.
2.04. The Council hereby finds, determines and declares that the modification,
approval and adoption of the Plans is intended and in the judgment of this Council its
effect will be to promote the purposes and objectives specified in this Section 2 and
otherwise promote certain public purposes and accomplish certain objectives as
specified in the Plans.
2.05. The Council hereby finds, determines and declares that the Proposed TIF
District constitutes a "tax increment financing district" as defined in Minnesota Statutes
Section 469.174, Subdivision 9, and further constitutes an "economic development
district" as defined in Minnesota Statutes Section 469.174, Subdivision 12.
2.06. The Council hereby finds, determines and declares that the proposed
development or redevelopment in the Proposed TIF District, in the opinion of this
Council, would not occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment financing is deemed
necessary.
2.07. The Council hereby finds, determines and declares that the City made the
above findings stated in this Section 2 and has set forth the reasons and supporting
facts for each determination in the Plans and Exhibit A of this Resolution.
Section 3. Approvals and Adoptions
3.01. The modifications to the Plan reflecting increased geographic area,
increased project costs and increased bonding authority within the Project Area are
hereby approved and adopted by the Council of the City.
3.02. The modifications to the Existing TIF Plans reflecting increased
geographic area, increased project costs and increased bonding authority within the
Project Area are hereby approved and adopted by the Council of the City.
3.03. The creation of the Proposed TIF District within the Project Area and the
adoption of the Proposed TIF Plan relating thereto are hereby approved by the Council
of the City.
Section 4. Flu of Plans
4.01. Upon approval and adoption of the Plans, the City shall cause said Plans
to be filed with the Minnesota Department of Revenue.
M
r _z I 1
Adopted by the Council of the City this 9th
voted in favor thereof: Cassen, Gwin- Lenth, Norby
day of September , 2002.
The motion for the adoption of the foregoing resolution was duly seconded by
Council Member N , and upon vote being taken thereon the following
and the following voted against the same: None. Abstained: Collier. Absent: Enck
Whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor and attested to by the Administrator - Clerk.
ATTEST:
City Clerk
CERTIFICATION
1, Valerie Leone , the duly qualified City -Clerk of the City of New
Hope, County of Hennepin, Minnesota, hereby certify that the foregoing is a true and
correct copy of Resolution No. 02 -132 passed by the City Council on the 9th day
of September , 2002.
City Clerk
4
11
t
EXHIBIT A TO RESOLUTION NO. 02 -132
The reasons and facts supporting the findings for the TIF Plan for the TIF District
pursuant to Minnesota Statutes Section 469.175, Subdivision 3, are as follows:
1. Finding that the TIF District is an "economic development district" as defined in
Minnesota Statutes Section 469.174, Subdivision 12.
The TIF District consists of four parcels of land and the proposed uses to be
undertaken thereon, as represented by the redeveloper in the Contract for Private
Redevelopment, qualify such parcels as an economic development district under
Minnesota Statutes, Section 469.174, Subdivision 12.
2. Finding that the proposed development or redevelopment, in the opinion of the
Council, would not occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment financing is deemed
necessary.
The Council has reviewed the costs associated with the proposed redevelopment
including the costs of relocating an existing business, demolishing an existing building,
relocating sewer and water lines, correcting extremely poor soils and providing a storm
water pond to accommodate the site and adjacent areas. After such review, the
Council has determined that without tax increment assistance for the soil correction,
utility relocation, business relocation and structure demolition, the redevelopment would
not proceed. and as a result, there would be no increased market value realized. (see
attached Schedule 1). Additionally, it is anticipated that between 40 and 50 additional
employment opportunities will be created. upon completion of the redevelopment.
3. Finding that the TIF Plan conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The EDA and Council have reviewed the TIF Plan and determined that it conforms to
the comprehensive plan of the City.
4. Finding that the TIF Plan will afford maximum opportunity, consistent with the
sound needs of the City as a whole for the development or redevelopment of the
Project Area by private enterprise.
The project to be developed (construction of a warehouse of up to 130,000 square feet
and a warehouse /trucking facility of up to 10,000 square feet) is located within the TIF
District. Upon completion the City's tax base will increase by approximately
$6,500,000.
5
SCHEDULE 1 TO EXHIBIT A
RESOLUTION NO. 02-132
I. DEVELOPMENT WITHOUT TIF ASSISTANCE:
Estimated Market Value $ 527,724
Original Market Value $ 527,724
Increased Market Value $
It is unlikely that a similar redevelopment would
proceed without TIF assistance on this site.
11. DEVELOPMENT WITH TIF ASSISTANCE:
Estimated Market Value $7,100,000
Original Market Value $ 527,724
Increased Market Value
$6,572,276
Less: Present Value of the Tax Increment Generated at $ 608,430
5.0% for the duration of the tax increment district
(see attached Exhibit 1)
Net Increased Market Value $5,963,846
The proposed project consists of a warehouse of up
to 130,000 square feet and a warehouse/trucking
facility of up to 10,000 square feet.
G:\WPDATA\N\NEW HOPEMUIRCOUNCIL RESOLUTION.00C
n .
EXHIBIT 1
PRESENT VALUE OF TA INCREMENT GENERATED
(a) (b)
(c)
(d)
Semi - Annual
Semi - Annual
Cumulative
Tax
Present
Present
Date Increment
Value
Value
06/01/02
12/01/02
06/01/03
12/01/03
06/01/04
12/01/04
06/01/05
12/01/05
06/01/06
12/01/06
06/01/07
12/01/07
06/01/08
12/01/08
06/01/09
12/01/09
06/01/10
12/01/10
06/01/11
12/01/11
06/01/12
12/01/12
0
0
0
0
0
0
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
64,144
1,026,303
0
0
0
0
0
0
48,607
46,963
45,375
43,840
42,358
40,926
39,542
38,204
36,913
35,664
34,458
33,293
32,167
31,079
30,028
29,013
608,430
0
0
0
0
0
0
48,607
95,570
140,945
184,785
227,143
268,069
307,610
345,815
382,727
418,391
452,850
486,143
518,310
549,389
579,417
608,430
608,430
Navarre - Ahrens TI Combined 4.xisPrepared by Krass Monroe, P.A. 9/5/2002
12 -90 -3002 02 :38pm From -CITY OF R , MOPE
STATE OF MINNESOTA)
COUNTY OF HENNEPIN)
CITY OF NEW MOPE )
7835315138, T -670 P.002l007 F -663
ss
1, the undersigned, being the duly qualified City Clerk of the City of New Hope, Minnesota,
hereby attest and certify that:
1 • As such officer, I have the legal custody of the original record from which
the attached resolution was transcribed.
2. 1 have carefully compared the attached resolution with the original record of
the meeting at which the resolution was acted upon.
3. 1 find the attached resolution to be a true, correct and complete copy of the
original:
EDA RESOLUTION NO. 2002-10
A RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY
WITHIN THE CITY OF NEW HOPE
FOR THE PURPOSE OF REDEVELOPMENT
4. 1 further certify that the affirmative vote on said resolution was 4 ayes, 0
nayes, and 1 absent/abstention,
b. Said meeting was duly held, pursuant to call and notice thereof, as required
by law, and a quorum was present.
WITNESS my hand officially as such Clerk and the seal of said City, this 10th day of
December, 2002.
CSedl )
X�� .
Valerie Leone, City Clerk
4401 Xylon Avenue North + New Hope, Minnesota 5542.8 -4$98 * www. ci.new- hope.mn.us
City Hall: 763 - 531 -5100 • Police (non - emergency): 763- 531 -5170 • Public Work%: 763-592-6777 - TDD: 7 63- 531 -5109
City Hall Fax: 763- 531 -5136 + Police Pax: 763 -531 -5174 * Public Works Fax: 763 - 592 -6776
12 -10 -2002 02 :36pm From -CITY OF I )HOPE 7636316136 „ T -670 P,0031007 F -663
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RDA RESOLUTION NO. 2002 -10
A RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY
WITHIN THE CITY OF NEW HOPE FOR THE PURPOSE OF REDEVELOPMENT.
(IMPROVEMENT PROJECT NO. 728)
WHI =REAS, the New Hope Economic Development Authority (the "Authority°) is
a public body corporate and politic authorized under Minn. Stat. §469.090 at seq.; and
WHEREAS, the Authority is authorized to exercise the right of Eminent Domain
under the aforementioned statute and under Minn. Stat, Chapter 917; and
WHEREAS, in furtherance of the Authority's objectives, there has been
established pursuant to Authority Resolution No. 02-05 a Restated Redevelopment
Plan (the '"Project Plan ") for Redevelopment Project No. 1 (the "Project Area" e
) in th
City of New Hope, Minnesota to encourage and provide,maxim op
Private development and portunity for
redevelopment of certain property Iocated within the City of
New Hope which is not now utilized in its highest and best use; and
WHEREAS the major objectives in establishing the ProjectArea and adopting the
Project Plan are to:
1 - Promote and secure the prompt development or redevelopment of certain
property in the ProjectArea, which property is not now in productive use or In its highest
and best use, in a manner consistent with the City's comprehensive plan and with a
minimum adverse impact on the environment and thereby promote and secure the
development of other land in the City,
2. Promote and secure additional employment opportunities within the
Project Area and the City for residents of the City and surrounding area, thereby
improving living standards, reducing unemployment and the loss of skilled and unskill
labor and other human resources in the City. ed
z.
12 -10 -2002 02s36pm From -CITY OF MOPE 7635316136 i T -570 P.004 /007 F -663
3. Secure the Increased valuation of property subject to taxation by the City,
County, School District and other taxing jurisdictions in order to better enable such
entities to pay for governmental services and programs required to be provided by
them,
4, Provide for the financing and construction of public improvements in and
adjacent to the Project Area necessary for the orderly and beneficial development or
redevelopment of the Project Area and adjacent areas of the City.
5- Promote the concentration of new desirable residential, commercial, office
and other appropriate development or redevelopment in the Project Area so as to
maintain the area in a manner compatible with its accessibility and prominence in the
City,
B. Encourage local business expansion, improvement, development or
redevelopment whenever possible.
7. Create a desirable and unique character within the Project Area through
quality land use alternatives and design quality in new and remodeled buildings.
8. Encourage and provide maximum opportunity for private development or
redevelopment of existing areas and structures which are compatible with the Plan.
9, Create viable environments which would upgrade and maintain housing
stock, maintain housing health and safety quality standards, and maintain and
strengthen individual neighborhoods.
14. Stimulate private activity and investment to stabilize and balance the City's
housing supply.
11. Eliminate code violations and nuisance conditions that adversely affect
neighborhoods.
12. Revitalize property to create a safe, attractive, comfortable, convenient
and effioient area for residential use.
13. Recreate and reinforce a sense of residential place and security which
creates neighborhood cohesiveness through City investment in neighborhood
infrastructure and public improvements, including landscaping, park improvements,
local street modifications to reduce traffic impacts, street repaving, curb and gutter
replacement, and streetlight updating.
,t
. 12 -10- 002 MUM From -CITY OF �_ .10PE 7635315136 �� T -570 P.005 /OOT F -663
14. Encourage Infrll development and redevelopment that is compatible in use
and scale with surrounding neighborhoods.
15. Rehabilitate the existing housing stock and preserve existing residential
neighborhoods wherever possible.
16. Demolish and reconstruct, where necessary, aging residential buildings to
Preserve neighborhoods.
1 7. Removal of substandard structures.
WHEREAS it appears that in order to accomplish the objectives and purposes
set out in the Project Plan, including promoting and securing additional employment
opportunities within the Project Area and the City for residents of the City and the
surrounding area, it will be necessary that properties described in Exhibit A attached
hereto and incorporated herein by reference be acquired (the "Properties "); and
WHEREAS, the Authority has been advised that said property will not be made
available for redevelopment in the manner that would allow the Authority to undertake
the project plan and meet the objectives and purposes. of that Plan for the Project Are
and for the City of New Hope' a
unless the Properties are acquired by use of Eminent
Domain; and
WHEREAS, the Authority believes that the development and redevelopment of
the Project Area and the fulfillment of the Project Plan are in the vital and best interests
of the Authority and the health, safety, morals and welfare of the residents of the City of
New Hope, and in accord with the public purposes and provisions of applicable federal,
state and local laws under which this development and redevelopment are being
undertaken and assisted;
NOW, THEREFORE, BE IT RESOLVED, that in order to undertake the Project
Plan and provide for the development and redevelopment of the properties in a manner
that will meet the objectives and purposes of the Project Plan and the Project Area, that
the Authority proceed to acquire the Properties and all interests therein under its power
of Eminent Domain; and that the attorneys for the Authority be instructed and, direct d
e
to file the necessary petition or petitions thereto and to prosecute such action or actions
to successful conclusion, or until such are abandoned, dismissed or terminated by the
Authority or the court; and that said petitions include any necessary actions to acquire
said Property under the "Quick Take" provisions of Minnesota Law, set forth in Minn.
Stat• §469. and Minn, Stat. §117.042; and that the attorneys for the Authority, the
President of the Authority and the Executive Director of the Authority do all things
necessary and convenient to be done in the commencement, prosecution and
successful termination of such Eminent Domain proceedings.
n• °
12 -10 +2002 02: Up From -CITY OF �� MOPE 7636316136 T -670 P- 006/007 F -663
BE IT FURTHER RESOLVED, that it is hereby found and declared that the
acquisition of the Properties described on Exhibit A hereto 'and all interests therein by
the Authority under its power of Eminent Domain Is necessary to develop and redevelop
their underdeveloped areas under the Project Plan.
Adopted by the New Hope Economic Development Authority this 12th day of
November , 2002. —_
7
i
r
4 �
W. Peter Enck � resident
ATTEST:
D a inti el J, onattue , Executive Director
A
t2- 1042002 02:39Pm
From -CITY OF l HOPE
?635315136 �..
EXHIBIT A
Le al ascription of the Properties
T-6 TO P.00 AU F -563
Land located in Hennepin County, Minnesota and described as follows:
Part
The East 145 feet of the South % of the Southwest Quarter of the Northwest Quarter of
Section 8, Township 118, Range 21, subject to a sewer easement over the East 45 feet
of said premises, as contained in Book 8 14 of Misc. Records 519.
Outlot A, FIVE THOUSAND WINNETKA 2ND ADDITION, according to the recorded plat
thereof, Hennepin County, Minnesota,
That part of Out(ot A, FIVE THOUSAND WINNETKA 2ND ADDITION, embraced within
the Southwest Quarter of the Northwest Quarter of Section 8, Township 118,
Range 21 is Registered Property as set out on Cettlfcate of Title No, 811091.
Par.
The South 300 feet of the West - 160 feet of the SE Y4 of NW1 /4 Section % Township 118N,
Range 21 W except street according to the United States Government Survey thereof and
situate in Hennepin County, Minnesota,
13 "MR)ATAWNEV H PM0LUnoKV0C