120919 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, December 9, 2019
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of December 9, 2019
2. Roll call
3. Approval of Minutes:
November 12, 2019
4. Resolution authorizing the final levy of a special benefit levy pursuant to Minnesota
Statutes, Section 469.033, subdivision 6 and approval of a final budget for fiscal year
2020
5. Adjournment
EDA Meeting
Page 1 November 12, 2019
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes November 12, 2019
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:22 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Frazier, seconded by Commissioner Elder, to
approve the minutes of October 28, 2019. Voted in favor thereof: Hemken,
Frazier, Hoffe, London; and the following voted against the same: None;
Abstained: Elder; Absent: None. Motion carried.
IMPROVEMENT
PROJECT NO. 1018
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
purchase and redevelopment agreements with Great Buy Homes, Inc. for the sale
of both lots contained within the plat of Lammle Addition (Improvement Project
No. 1018).
Mr. Jeff Alger, community development specialist, stated the city acquired 5355
Oregon Avenue North in April of 2018 and the site has been re -platted as two
buildable lots. He noted West Metro Fire completed training exercises at the site.
Mr. Alger explained the Request for Proposals (RFP) marketing proposal that was
conducted for the scattered site lots located at 5353 and 5355 Oregon Avenue
North. Stipulations of the RFP included a minimum lot sales price of $60,000 and
that the proposed houses must be owner-occupied, single-family homes (for two
years).
Mr. Alger stated the city received proposals submitted by Great Buy Homes,
Houston Homes, My Home Source, and Novak -Fleck. He stated staff’s
recommendation is to sell the lots to Great Buy Homes for $130,000 ($65,000 per
lot). He reviewed the characteristics of the house plans (total finished square
footage, number of bedrooms, garage size and interior/exterior finishes) along
with the cost and tax impact of the improvements, the return on investment, and
tax benefit associated with the increased property value.
EDA Meeting
Page 2 November 12, 2019
Mr. Alger commented one of the main goals of the scattered site housing program
is to improve neighborhoods.
President Hemken opened the floor for comments from the audience. There was
no one present desirous of addressing the EDA for the publ ic hearing.
Mr. Glen Hammer, owner of Great Buy Homes, was recognized. He thanked the
EDA for the opportunity to work with the city again.
Commissioner Frazier expressed support for the program as it revitalizes
neighborhoods. He mentioned past projects that involved Habitat for Humanity
and recommended pursuing some affordable housing projects for first time
homebuyers in the future.
CLOSE HEARING
Item 4
Motion was made by Council Member Elder, seconded by Council Member
Frazier, to close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2019-11
Item 4
Commissioner London introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AND
REDEVELOPMENT AGREEMENTS WITH GREAT BUY HOMES, INC. FOR
THE SALE OF BOTH LOTS CONTAINED WITHIN THE PLAT OF LAMMLE
ADDITION (IMPROVEMENT PROJECT NO. 1018)”. The motion for the
adoption of the foregoing resolution was seconded by Commissioner Elder, and
upon vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Frazier, Hoffe, London; and the following voted against the same: None;
Abstained: None; Absent: None; 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 Elder, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 7:37 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\City Manager\2019\Budget 2020\Adopt Budget 12.09.19\EDA 4 q-EDA final levy 12.09.19.docx
Request for Action
December 9, 2019
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution authorizing the final levy of a special benefit levy pursuant to Minnesota Statutes, Section 469.033,
subdivision 6 and approval of a final budget for fiscal year 2020
Requested Action
Staff requests the EDA adopt the attached resolution relating to the EDA levy for 2020.
Background
The resolution supports the $348,000 EDA levy. The EDA must adopt the EDA levy separate from the city’s
base levy. The EDA levy has been increased incrementally since 2013 to fund the scattered site housing
program. The EDA may levy up to .01813 percent of the estimated market value for taxes payable in 2020.
The total estimated market value is estimated by Hennepin County at $1,921,182,700 ($1,921,182,700 x
.01813% = $348,310.42). A levy increase of $48,000 is recommended for 2020 for a total EDA levy of $348,000.
Attachment
Resolution
Agenda Section
EDA
Item Number
4
City of New Hope
EDA RESOLUTION 2019 -
RESOLUTION AUTHORIZING THE FINAL LEVY OF A SPECIAL BENEFIT LEVY
PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND
APPROVAL OF A FINAL BUDGET FOR FISCAL YEAR 2020
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the
City Council of the City of New Hope created the New Hope Economic Development Authority (the
"Authority"); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the
powers and duties of a housing and redevelopment authority under the provisions of the Minnesota
Statutes, sections 469.001 to 469.047 (the "HRA Act"); and
WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the Authority to levy and
collect a special benefit levy of up to .01813 percent of estimated market value in the City upon all
taxable real property within the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to
.01813 percent of estimated market value in the City for taxes payable in 2020; and
WHEREAS, pursuant to Minnesota Statutes, Section 275.065, the Authority is required to adopt a
proposed budget and a proposed tax levy and submit the same to the County Auditor by Sept 30; and
WHEREAS, the Authority has before it for its consideration a copy of a proposed budget for its
operations for the fiscal year 2020 and the amount of the proposed levy for collection in 2020 shall be
based on this budget and the long range financial management plan, subject to any adjustments in the
budget as finally approved prior to certification of the final special benefit levy.
NOW THEREFORE, BE IT RESOLVED by the New Hope Economic Development Authority:
1. The proposed budget for the operations of the Authority in fiscal year 2020, as presented for
consideration by the City Council, is hereby in all respects approved, subject to final approval
by the Authority before certification of the tax levy under Minnesota Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the
City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6,
is hereby approved in the amount of $348,000. The maximum amount that can be levied is an
amount equal to .01813 percent of estimated market value in the City of New Hope.
4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the
City Council of the levy of special benefit taxes payable in 2020 and to take such other actions as
are necessary to bring before the Board the final budget and levy to be sent to the county auditor
on or before five working days after December 20, 2019.
Adopted by the New Hope EDA on December 9, 2019.
_________________________________
President
Attest: ________________________________
Executive Director