Ed081202
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes August 12, 2002
Regular Meeting City Hall
CALL TO ORDER President Enck called the meeting of the Economic Development Authority to
order at 7:46 p.m.
ROLL CALL Present: W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Absent: Pat LaVine Norby, Commissioner
APPROVE MINUTES Motion was made by Commissioner Collier, seconded by Commissioner Gwin-
to approve the Regular Meeting Minutes of July 22, 2002
Lenth, . Voting in
favor: Enck, Cassen, Collier, Gwin-Lenth; Voting Against: None; Absent:
Norby; Abstained: None. Motion carried.
IMP. PROJECT 727 President Enck introduced for discussion Item 4, Discussion Regarding Creation of
Item 4 Tax Increment Financing District and City Assistance for Navarre Corporation
Expansion and Ahrens Trucking Relocation; Discuss Terms of Agreement and
Direct Staff to Proceed with Preparation of Development Agreement (Improvement
Project No. 727).
Mr. Kirk McDonald, Director of Community Development, stated at the June 10,
2002, New Hope EDA meeting, staff presented a request from Navarre Corporation
to relocate Ahrens Trucking from its current location to the city-owned property at
th
9200 49 Avenue to facilitate a large expansion at the Navarre site. The EDA
directed staff to coordinate with all parties to determine if the plan was financially
feasible. Navarre requested city financial assistance in the form of a land write-
down gap funding assistance for the Ahrens project and utility relocation at the
Navarre site. The EDA saw this initially as a “win-win” for all parties, as Ahrens
Trucking would be relocated and retained in the City, Navarre Corporation would
undertake a major expansion, and the city property would be developed and
regional storm water improvements.
Over the past two months, staff has been coordinating with Krass Monroe and
Navarre Corporation on details regarding how this project might work and Krass
Monroe has prepared the documents outlining the scope and financial parameters
of the project. If the EDA is agreeable to the terms of the agreement, staff
recommends that the EDA direct staff to continue to coordinate with all parties on
the preparation of a development agreement.
Mr. Jim Casserly, Krass Monroe, P.A., was recognized. He reviewed the financial
and legal analysis for the project. He stated the proposal includes the City
providing Navarre with the required amount of city property needed for the Ahrens
relocation and the EDA issuing a Revenue Note to Navarre Corporation in the
amount of $200,000 plus the cost of relocating the utilities on the redevelopment
property in an amount not to exceed $250,000 for a total principal amount of the
Revenue Note not to exceed $450,000. The Revenue Note shall be paid from tax
New Hope EDA
increment generated by the minimum improvements on the redevelopment
Page 1 August 12, 2002
property.
property in an amount not to exceed $250,000 for a total principal amount of the
Revenue Note not to exceed $450,000. The Revenue Note shall be paid from tax
increment generated by the minimum improvements on the redevelopment
property.
Mr. Casserly pointed out that Navarre will construct the Ahrens building at
Navarre’s expense. If for some reason Navarre fails to construct its own expansion,
then the City is not obligated to reimburse Navarre for the Ahren’s building.
He stated after eight years, the Navarre property will have generated over $200,000
in new taxes and the Ahrens trucking property will have generated approximately
$10,000 in taxes. Therefore, the initial costs will be recouped in eight years and
each year thereafter the City will receive $210,000 in new taxes.
Commissioner Collier pointed out that the City spent approximately $200,000 to
purchase the land.
Mr. Casserly stated after payment of the revenue note, approximately $300,000
will be remaining for the EDA’s project expenses.
President Enck thanked Mr. Casserly for his analysis.
The following persons were recognized: Robert Glasgow, President of Glasgow
Advisor Services, Inc.; John Turner, Senior Vice President of Navarre Corporation;
and Brett & Don Ahrens of Ahrens Trucking.
President Enck thanked Navarre for being a good corporate citizen. He inquired
regarding the existing problems with the driveway and parking at the Navarre site.
Mr. Glasgow stated they need to upgrade the parking area and have requested
postponing this until the expansion.
nd
Mr. Mark Montgomery, 7307 62 Avenue North, questioned the average salary for
the new jobs that will be created.
Mr. John Turner indicated the range will be $11-13 per hour. The rate of a new
employee is $8.50 per hour. The expansion will also allow on-site office
accommodations for positions such as IT, marketing, and finance.
Commissioner Cassen questioned the proposed timeline for the project.
Mr. McDonald stated the public hearing (Council agenda item 8.4) will set the
public hearing on September 9. The construction will begin as soon as possible.
President Enck noted the owner will be required to maintain the landscaping.
He thanked Ahrens Trucking and Navarre for their cooperation with city staff and
accomplishing the objectives outlined by staff and Mr. Casserly.
MOTION/AUTHORIZMotion was made by Commissioner Cassen, seconded by Commissioner Gwin-
E authorizing staff to proceed with preparation of a development
Lenth,
PROCEEDING
agreement (Improvement Project No. 727).
. Voting in favor: Enck, Cassen,
Item 4
Collier, Gwin-Lenth; Voting Against: None; Absent: Norby; Abstained: None.
Motion carried.
New Hope EDA
Page 2 August 12, 2002
ADJOURNMENT to
Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
adjourn the meeting
. Voting in favor: Enck, Cassen, Collier, Gwin-Lenth;
Voting Against: None; Absent: Norby. Motion carried. The New Hope EDA
adjourned at 8:22 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 3 August 12, 2002