Ed021102
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes February 11, 2002
Regular Meeting City Hall
CALL TO ORDER
President Enck called the meeting of the Economic Development Authority to order
at 7:51 p.m.
ROLL CALL
Present: W. Peter Enck, President
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Absent: Sharon Cassen, Commissioner
Pat LaVine Norby, Commissioner
APPROVE MINUTES
Motion was made by Commissioner Collier, seconded by Commissioner Gwin-
to approve the Regular Meeting Minutes of January 28, 2002
Lenth, . All
present voted in favor. Motion carried.
DISCUSSION/ President Enck introduced for discussion Item 4, Discuss Concept Proposal by
LIVINGWORKS LivingWorks Ventures to Develop Portion of City-Owned Property at 5425-5501
Item 4 Boone Avenue North and Motion Approving Appraisal Update.
Mr. Kirk McDonald, Director of Community Development, explained the history of
the 5501 Boone Avenue property. He stated the EDA acquired 5501 Boone Avenue
and a portion of the property at 5425 Boone Avenue in 1993, through eminent
domain proceedings, with the intent to convey the property to CareBreak for the
construction of an adult day care facility on the site. The total acquisition cost was
$376,764 and the City used $100,000 in CDBG (Community Development Block
Grant) funds towards a portion of the acquisition. In 1995, the City approved a plan
for the construction of an adult day care center on the site and approved a rezoning
of the property from I-1 to R-5, subject to the project proceeding. The project did
not proceed, the rezoning did not take effect, and the land was not conveyed to
CareBreak.
In 1997, the City executed a Land Disposition and Third Party Agreement with
Hennepin County. The Third Party Agreement shifts the responsibility/authority for
developing the site from the City to the EDA. The Land Disposition Agreement
states that the property must be utilized for the development of an adult day care
facility or some other “CDBG eligible” use. If the property is not utilized for a
“CDBG eligible” use, the CDBG funds must be repaid to the County or a portion of
the land’s sale price must be paid to the County. In 1999, Minnesota Masonic
Homes, Inc. purchased the North Ridge Care Center and CareBreak was impacted
by the acquisition. In 2000, a three-year extension was granted on the Land
Disposition Agreement to October 2003. CareBreak has subsequently indicated that
they will not be proceeding with the development of an adult day care center on the
site. The EDA needs to find a suitable use for this property and ideally it would be a
use that qualifies under CDBG guidelines so that those funds could remain in the
project.
Recently, LivingWorks Ventures, a non-profit provider of housing, employment and
support services for recovering chemically dependent adults with brain injuries or
other cognitive disabilities, has approached city staff in the past about developing a
facility in New Hope. Longtime New Hope resident Duane Reynolds is associated
with LivingWorks Ventures, which is related to Vinland Center, a provider of
New Hope EDA
rehabilitation services to persons with disabilities for almost 25 years. In the past
Page 1 February 11, 2002
several years, city staff coordinated with LivingWorks on the potential
acquisition/redevelopment of the properties at 8109/8113/8115 Bass Lake Road, but
was not successful in acquiring the property. LivingWorks has been successful in
the past year in acquiring funding from a variety of sources for the construction of a
facility in New Hope. Longtime New Hope resident Duane Reynolds is associated
with LivingWorks Ventures, which is related to Vinland Center, a provider of
rehabilitation services to persons with disabilities for almost 25 years. In the past
several years, city staff coordinated with LivingWorks on the potential
acquisition/redevelopment of the properties at 8109/8113/8115 Bass Lake Road, but
was not successful in acquiring the property. LivingWorks has been successful in
the past year in acquiring funding from a variety of sources for the construction of a
facility and were working with the City of Crystal on a site until recently, when it
was determined by Crystal that a commercial use was most appropriate for the site.
The loss of the site in Crystal prompted LivingWorks to contact New Hope again
about potential development sites and staff raised the possibility of utilizing a
portion of the city-owned site at 5501 Boone for this use.
Staff and consultants met with Hennepin County and LivingWorks representatives
several weeks ago to discuss a potential project on a portion of the city-owned
property on Boone Avenue. Several of the key items discussed at the meeting
included:
·
LivingWorks is a “CDBG eligible use” and Hennepin County would allow the
City to retain the $100,000 in CDBG funds utilized for land acquisition if the
facility was constructed on a portion of the site.
·
LivingWorks would purchase the property they would need for the facility and
have funds for land acquisition; they are not asking the City to donate the land.
·
Although LivingWorks is a nonprofit and tax exempt, they are agreeable to
paying an annual PILOT (Payment in Lieu of Taxes) to the City for the city
portion of the tax pie to cover city services costs.
·
The proposed use is somewhat medically related, is similar to an adult day care
use and is compatible with the Masonic/North Ridge complex across the street.
·
LivingWorks Ventures is agreeable to exploring options to have other similar
facilities on the site. GMMHC and Tasks Unlimited may both have an interest
in developing facilities on the site and staff has encouraged more than one
building to make good use of the property.
·
Soil conditions were discussed and LivingWorks understands that some soil
corrections and/or piling construction may be necessary.
·
Staff discussed that we would like to see a portion of the property leased to or
purchased by Masonic/North Ridge and a parking lot constructed to resolve the
long-standing on-street parking problem.
Mr. McDonald explained that the developer of this project, LivingWorks Ventures,
is a nonprofit provider of housing, employment, and supportive services for
recovering chemically dependent adults with brain injuries or other cognitive
disabilities. Since 1998, LivingWorks has operated – in collaboration with Tasks
Unlimited, Inc., the property owner – an eight-bedroom twin home for a similar
tenant group at 4125-27 Jordan Avenue North in New Hope.
LivingWorks Ventures was founded in 1998 as a “sister” nonprofit of Vinland
Center, a provider of rehabilitation services for Minnesotans with disabilities for
nearly 25 years. Since 1990, Vinland has operated a chemical dependency treatment
program for adults with a dual diagnosis of cognitive disability and chemical
dependency. LivingWorks Ventures was created to expand the continuum of care
for persons with this dual disability to include supportive housing, employment, and
community integration. Staff of both Vinland Center and LivingWorks Ventures
will be involved in implementing the proposed project.
Mr. McDonald illustrated a preliminary concept plan that includes new construction
of a 12-unit facility providing both independent living quarters and shared living
space for people with disabilities. The building will be designed as a twin home.
Each twin unit will have two stories, with three bedrooms on each level for each
unit (12 bedrooms in all) and each unit connected to a central
living/dining/recreation area. The entire first floor of the facility – both shared
living space and individual units – will be accessible to people who use wheelchairs
New Hope EDA
or have other mobility impairments. This design allows for maximum flexibility to
Page 1 February 11, 2002
serve a variety of tenants, including men, women, individuals who can function
independently, and people who may need some level of daily care.
living/dining/recreation area. The entire first floor of the facility – both shared
living space and individual units – will be accessible to people who use wheelchairs
or have other mobility impairments. This design allows for maximum flexibility to
serve a variety of tenants, including men, women, individuals who can function
independently, and people who may need some level of daily care.
Unit rents will be $200/month plus approximately $50 as the prorata share of the
utility costs. This rent level will be affordable to residents whose primary sources of
income will be employment (most will be working at least part time, as described
below) and public disability assistance funds for which most will quality.
Nine of the units will be reserved for residents with incomes at or below 50% of the
area median income (which, according to the Federal Home Loan Bank of Des
Moines in May 1999, is $41,812 for a one-person household in the 11-county
Minneapolis/St. Paul metropolitan area). Two will be reserved for residents with
incomes at or below 60% of the area median income.
Residents will be referred predominantly from Vinland Centers rehabilitation
programs. Prior to referral, they will be assessed to insure that they are appropriate
for a group living situation. They will also receive intensive training in
“interdependent” group living skills. The facility will employ a part-time staff
coordinator who will provide a variety of services including counseling, guidance,
and sober support as well as case management.
Some residents may require additional services, such as personal care attendants,
counseling, or physical therapy, over and above those provided by the staff
coordinator. These services would most likely be paid for with “waivered service”
funding for which individual residents would qualify through Hennepin County.
With limited exceptions, residents will be expected to work at least part time – and
will be guaranteed paid employment through a contract LivingWorks has with
Tasks Unlimited Building Services (TUBS), or at other area businesses. We expect
the employment situation of residents of the new project to be comparable to that of
residents of the Jordan Avenue residence, four of whom are employed in the
community and four of whom work for TUBS. As with the current residence,
LivingWorks will ensure that residents – most of whom do not have driver’s
licenses – have consistent transportation to and from work.
The total cost of this development is approximately $1.1 million, of which
approximately $922,000 is for capital development costs and the remainder for
support services, operations and administration. Of this total, $1,067,900 has been
raised. The financing secured to date is a combination of mortgage and construction
financing from the Minnesota Housing Finance Agency and other grants and loans
from Hennepin County HOME funds, the Affordable Housing Program of the
Federal Home Loan Bank of Des Moines, and HUD McKinney funds. Additional
public sources such as the Affordable Housing Incentive Fund will be approached
for the remaining gap funding. The final amount needed may be increased if soil
conditions on the lot at 5501 Boone Avenue North require pile drivings or other
extensive soil corrections to support construction.
LivingWorks’ acquisition of the property is dependent primarily on three things:
First, the City Council and Planning Commission must review and rezone the
property so that the proposed project is a permitted use. Second, LivingWorks
Ventures must secure the remainder of the financing needed to complete the project.
Third, project funders must agree that the property meets their environmental,
location and other criteria. Construction could be initiated within a few months after
these steps were completed and transfer of property ownership occurred. It is
expected that construction would take approximately six months and that residents
could begin to move in shortly after the residence was completed.
New Hope EDA
Page 1 February 11, 2002
Two other nonprofit organizations, Tasks Unlimited and Greater Minneapolis
Metropolitan Housing Corporation, have expressed an interest in exploring the
possibility of developing their own low income and/or disability housing projects on
the same lot. LivingWorks Ventures might be interested in pursuing these
partnerships, if the City of New Hope would be supportive and if the collaboration
would be beneficial to all projects involved.
This development will provide reinvestment in the area’s aging housing stock by an
owner committed to maintenance and a long-term relationship with the community.
The improved appearance and stability of the new facility will add to the
surrounding area’s value and livability, and help meet the City’s goals related to the
preservation of “life cycle” housing.
These units will provide an opportunity for adults with disabilities to live and work
in the community in the least restrictive, most affordable – and cost effective –
environment possible and will meet the requirements for a CDBG-permitted use of
the property.
LivingWorks, its partner agency in the Jordan Avenue project, Tasks Unlimited, and
its “sister” agency, Vinland Center, have a long history of mutually beneficial
community relations. For example, Tasks Unlimited is known for investing in
exterior improvements that make the buildings they own among the most attractive
properties in their neighborhoods. LivingWorks is committed to implementing this
same kind of neighborhood improvement approach in the proposed project.
Another example of positive community relations involves Vinland and the City of
Independence. As a tax-exempt rehabilitation center in Independence that uses tax-
financed public services (such as police and rescue squad), Vinland was asked by
the City of Independence to pay for these services on a per use basis. Although not
legally bound to do so, Vinland entered into a pay-per-use agreement with the City
of Independence as a demonstration of its commitment to the community.
LivingWorks is prepared to negotiate a comparable arrangement with New Hope
should the City so desire.
City staff request that the EDA review, comment and provide direction to staff on
the LivingWorks Ventures proposal to develop a facility on the site, the potential for
other organizations (GMMHC, Tasks Unlimited) to develop facilities on the site and
the parking lot concept to address the Masonic/North Ridge parking issue.
Mr. McDonald stated if the EDA is interested in pursuing this idea, staff
recommends that the EDA authorize staff to seek an updated property appraisal so
the current market value can be determined. Patchin, Messner & Dodd, who were
involved in the original appraisal, have submitted a quote in the amount of $2,600 to
appraise the property. Other steps that would need to be taken include contacting
Masonic/North Ridge regarding the parking issue and parking lot concept,
contacting GMMHC and Tasks Unlimited on the potential for other facilities on the
site, and working with LivingWorks Ventures on a preliminary letter of
understanding.
The cost for the updated appraisal would be paid for with TIF funds, as the property
is located in an area where tax increment funds can be expended. If the property was
sold, the proceeds would be deposited in the in the tax increment account. If the
LivingWorks Ventures proposal would be constructed, the City would not have to
repay the $100,000 in CDBG funds.
President Enck expressed concern that the proposed development may prohibit
future development on the remainder of the site.
New Hope EDA
Page 1 February 11, 2002
The EDA was supportive of construction of a parking lot to resolve the long-
standing on-street parking problem near North Ridge Care Center.
Mr. Duane Reynolds and Susan Rivard were recognized. Mr. Reynolds explained
that the project requires a ½ acre minimum and lots of this size are difficult to find.
Mr. Reynolds indicated the soil conditions would require pile drivings.
Ms. Rivard explained that the part-time coordinator works within the central living
room area and has a small desk with computer and facsimile machine. She
responded to questions regarding garage space and stated typically only 25% of the
residents own vehicles. The lodge will have a van for the residents.
Mr. Reynolds emphasized the benefits of the site specifically the accessibility to bus
transportation and jobs within an industrial area.
Commissioner Gwin-Lenth asked Ms. Rivard to explain the PILOT agreement they
have in the City of Independence. Ms. Rivard stated they are invoiced quarterly for
hourly use of police and fire services. Commissioner Collier pointed out that there is
no fee for snowplowing services.
Commissioner Gwin-Lenth commented that she lives near the other lodge and noted
its benefit to the community.
Discussion ensued regarding the need for an updated appraisal and whether the cost
can be justified.
Ms. Rivard indicated they are in the process of seeking the remainder of their
financing and information relative to pile driving costs. She commented that it
would be helpful to know the cost of the lot.
Commissioners Collier and Gwin-Lenth expressed interest in continuing discussions
regarding the proposed project. They concurred that obtaining an updated appraisal
appears to be necessary in order to continue discussions.
MOTION Motion was made by Commissioner Collier, seconded by Commissioner Gwin-
authorizing staff to seek an updated appraisal for 5425-5501 Boone
Item 4 Lenth,
Avenue North.
Voting in favor: Collier, Gwin-Lenth; Voting against: Enck.
Absent: Cassen, Norby. Motion carried.
ADJOURNMENT
to
Motion was made by Commissioner Collier, seconded by President Enck,
adjourn the meeting
. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:30 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 1 February 11, 2002