Ed111202
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes November 12, 2002
Regular Meeting City Hall
CALL TO ORDER
President Enck called the meeting of the Economic Development Authority to order
at 8:31 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
to
Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
approve the Regular Meeting Minutes of October 28, 2002
. Voting in favor:
Enck, Cassen, Collier, Gwin-Lenth; Voting Against: None; Absent: Norby;
Abstained: None. Motion carried.
IMP. PROJECT 728 President Enck introduced for discussion Item 4, Resolution Authorizing the
Item 4 Acquisition of Certain Property within the City of New Hope for the Purpose of
Redevelopment (Improvement Project No. 728).
Mr. Kirk McDonald, Director of Community Development, stated before the EDA
are two resolutions: one resolution authorizes the acquisition of property for
redevelopment and one resolution approving a contract for private redevelopment
between the EDA and Navarre Corporation/New Hope, LLC. He briefly reviewed
the initial project that was proceeding until two months ago when bids came in too
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high for construction of the trucking facility at 9200 49 Avenue. Mr. McDonald
stated the EDA's previous direction to staff was to continue to work with both
Navarre Corporation on their project and with Ahrens Trucking for an alternate site.
Mr. McDonald reported that Navarre Corporation needs to be in their new building
near the end of year 2003. In order to facilitate spring construction activities, the
utilities need to be in place by February. This would require the relocation of
Ahrens Trucking to another property on a temporary basis until a permanent
location is obtained.
Mr. Jim Casserly, Krass Monroe, was recognized. He reported that the resolutions
were prepared with the assistance of the city attorney. The second resolution
describes the development program, the objectives, and previously established
goals. The specifics of the plan regarding the property acquisition are outlined near
the end of the resolution.
Ms. LaDonna Ahrens, Ahrens Trucking, was recognized. She requested the EDA to
use their authority to ensure that the final resolution of the Navarre and Ahrens
situation does not result in the economic hardship nor the financial demise of
Ahrens Trucking. She expressed the company's willingness to relocate but must be
fairly compensated so that they won't be put out of business. She emphasized that
the location is an integral factor for the success. Ms. Ahrens reported on the
difficulty of finding a comparable site at an affordable price. In conclusion, Ms.
Ahrens conveyed that Ahrens Trucking needs "replacement value" of their property
New Hope EDA November 12, 2002
in order to survive the loss of their property.
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Ahrens conveyed that Ahrens Trucking needs "replacement value" of their property
in order to survive the loss of their property.
At President Enck's request, Ms. Ahrens explained her disappointment regarding the
negotiation process with Navarre Corporation and the abrupt termination of
negotiations.
Mr. Robert Glasgow, representing Navarre Corporation, was recognized. He
disputed some of the sequence of events as reported by Ms. Ahrens. He noted
Ahrens Trucking requested a larger facility than their present building as a
relocation incentive. The construction cost was $740,000 but Ahrens did not want to
exceed $700,000. Weather conditions increased the contract price and the project
went from $65,000 overage to $200,000 overage.
Mr. Glasgow noted negotiation efforts with Ahrens Trucking have taken place
during the past two years, and Navarre had hoped to reach a mutual settlement. He
stated Navarre Corporation is anxious to obtain approval to move forward. He noted
a construction deadline of September 1, 2003. He pointed out that in addition to the
$340,000 purchase price offer for Ahrens Trucking property, Navarre has incurred
$80,000 in related negotiation expenses.
President Enck inquired whether Navarre Corporation is agreeable to all the terms
of the contract. Mr. Glasgow responded affirmatively.
Mr. Steve Sondrall, City Attorney, stated if the city proceeds with condemnation of
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the 7600 49 Avenue property, the city is required to pay fair market value and
relocation costs. The city would be reimbursed for these expenses by Navarre
Corporation.
Discussion ensued regarding a property appraisal of the Ahrens Trucking property.
Mr. Sondrall, City Attorney, commented on the estimated expense of $5,000 for an
appraisal and that an appraisal did not seem necessary since negotiations were
proceeding well. He also commented that the offer on the table exceeded the
property’s market value.
The EDA was advised that the property’s taxable market value is $160,000 and the
offer by Navarre Corporation was originally $300,000 and later increased to
$340,000. Ahrens Trucking is requesting $400,000 for the property.
Councilmember Cassen empathized with Ahrens Trucking. However, she pointed
out the difficulties presented to businesses that want to expand in fully developed
cities. She referred to the city’s comprehensive plan that promotes the retention and
expansion of industrial/office/warehouse businesses in the City to promote
employment opportunities and expand the tax base. She also commented that the
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Navarre Corporation’s redevelopment of 7600 49 Avenue North would be the
highest and best use of the property.
Councilmember Cassen suggested locating a temporary site for Ahrens trucking so
that a spring construction date could be considered for their new facility.
Councilmember Gwin-Lenth expressed disappointment that the two parties were
unable to reach a settlement. She suggested taking steps to hold options open for
Ahrens Trucking.
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President Enck advised that the city-owned property at 9200 49 Avenue is still an
option for Ahrens Trucking. He explained that the change is that Navarre
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Corporation is no longer a part of the 9200 49 Avenue project. He joined staff and
the other EDA members in advocating that Ahrens Trucking remain in the City.
New Hope EDA November 12, 2002
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Mr. Don Ahrens, Ahrens Trucking, was recognized. He contended that even with
the offer of $340,000 there are too many variables. He expressed the need for a
specific timeline. He noted the difficulty and time-consuming process to locate an
acceptable replacement property.
Mr. Jim Casserly indicated an eminent domain proceeding would take three to four
months. He noted it is in everyone’s best interests to sell/purchase the property on a
voluntary basis.
Mr. Casserly briefly reported on tax implications of condemnation proceeding
awards.
It was noted that Commissioner Collier is refraining from participating in the
discussion, as he is a member of an investment club that owns Navarre stock.
EDA RESOLUTION President Enck introduced the following resolution and moved its adoption
02-10 “RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN
Item 4 PROPERTY WITHIN THE CITY OF NEW HOPE FOR THE PURPOSE OF
REDEVELOPMENT (IMPROVEMENT PROJECT NO. 728)”.
The motion
for the adoption of the foregoing resolution was seconded by Commissioner Cassen,
and upon vote being taken thereon, the following voted in favor thereof: Enck,
Cassen, Gwin-Lenth, and the following voted against the same: None; Abstained:
Collier; Absent: Norby; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive director.
IMP. PROJECT 728 President Enck introduced for discussion Item 5, Resolution Authorizing Execution
Item 5 and Delivery of a Contract for Private Redevelopment, by and Between the New
Hope Economic Development Authority and New Hope, LLC (Improvement
Project No. 728).
EDA RESOLUTION President Enck introduced the following resolution and moved its adoption
02-11 “RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A
Item 5 CONTRACT FOR PRIVATE REDEVELOPMENT, BY AND BETWEEN
THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND NEW
HOPE, LLC (IMPROVEMENT PROJECT NO. 728)”.
The motion for the
adoption of the foregoing resolution was seconded by Commissioner Cassen, and
upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen,
Gwin-Lenth, and the following voted against the same: None; Abstained: Collier;
Absent: Norby; whereupon the resolution was declared duly passed and adopted,
signed by the president which was attested to by the executive director.
ADJOURNMENT
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Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
adjourn the meeting
. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 9:30 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA November 12, 2002
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