Ed062501
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes June 25, 2001
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
Pat LaVine Norby, Commissioner
APPROVE MINUTES
to
Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
approve the Regular Meeting Minutes of December 11, 2000
. Voting in favor:
Collier, Cassen, Norby, and voting against: None, Abstained: Enck, Gwin-Lenth,
Absent: None. Motion carried.
DISCUSSION/ 7610 President Enck introduced for discussion Item 4, Discussion Regarding
BASS LAKE ROAD Redevelopment/Rehabilitation Project at 7610 Bass Lake Road.
Item 4
Mr. Kirk McDonald, Director of Community Development, updated the EDA
regarding the proposal for the redevelopment/rehabilitation of the 11-unit apartment
complex at 7610 Bass Lake Road in conjunction with Project for Pride in Living
(PPL), the Northwest Community Revitalization Corporation (NCRC) and several
other funding agencies. He noted this project was last discussed with the EDA in
February 2000, and at that time the EDA was generally favorable towards the
project. The purpose of this update is to discuss some minor modifications to the
original proposal and determine if the EDA would commit funding to the project
with final approvals to be made at meetings in the near future.
Mr. McDonald stated in the past, the City has participated in similar collaborations,
most recently with the Bass Lake Court Townhomes Project. As the EDA is aware,
projects of this size require a variety of funding partners and usually require the
expertise of an experienced development agency, such as PPL. Housing
redevelopment has been designated as a high priority of the City Council and this
property is identified in the Comprehensive Plan for redevelopment or rehabilitation
and it is also identified in the Livable Communities Grant study area.
In 1999, the Northwest Community Revitalization Corporation (also known as the
Community Housing Development Corporation/CHDO) and PPL approached the
City and inquired about multiple family properties in need of rehabilitation for a
potential collaborative project. Staff had previously identified the 7610 Bass Lake
Road property as a high priority. Previous attempts to coordinate a rehabilitation
project with the owners have not been successful and a portion of this project would
involve acquisition and rehabilitation of the property.
In February 2000, when the project was discussed with the EDA, a collaborative
project with the City of Crystal was also part of the project, with one site in New
Hope and one site in Crystal, (both on Bass Lake Road). The proposal was
submitted to the Minnesota Housing Finance Agency for funding, but the two-city
proposal was declined, due to the fact that the MHFA did not favor the Crystal
project site. The project was modified to include the New Hope site only and
resubmitted for funding, however, due to strong competition from other projects, the
New Hope EDA June 25, 2001
project was again not funded by the MHFA. Despite the fact that funding from the
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MHFA has been declined, Hennepin County and others still have funding
committed to the project, and PPL and the CHDO desire to proceed with the project
in collaboration with the City.
resubmitted for funding, however, due to strong competition from other projects, the
project was again not funded by the MHFA. Despite the fact that funding from the
MHFA has been declined, Hennepin County and others still have funding
committed to the project, and PPL and the CHDO desire to proceed with the project
in collaboration with the City.
The development partners are Project for Pride in Living (PPL) and the Northwest
Community Revitalization Corporation (NCRC). The proposed project consists of
the renovation of the 11-unit apartment building at 7610 Bass Lake Road in New
Hope. The building contains six, two-bedroom apartments and five, one-bedroom
apartments. The plans entail the exterior and interior renovation of the existing
apartment building. The building exterior will be completely renovated, including
painting, the repair or replacement of the soffits and fascia, the provision of a new
roof, gutters, and downspouts as necessary, spot tuckpointing and brick repair, and
the repair or replacement of the windows. He landscaping will be improved, the
drive expanded and resurfaced, the walkways repaired, and garages added for each
unit.
The interior work will include updating the existing units in their present
configuration. New cabinets, counters and appliances will be provided in the
kitchens. The plumbing and electrical will be updated. A new water heater will be
provided and the existing boiler will be inspected and replaced, if necessary. The
walls will be repaired and painted and new carpet will be installed throughout.
The monthly rent for the units will vary from $555 to $710 depending on unit size.
At a minimum, nine of the units would be rented to families earning less than 50%
of the area median (e.g. $37,000 for a family of four). Three of the units would have
rents subsidized for lower income families. Two of those three units would be
reserved for residents on the Minneapolis Public Housing waiting list and the other
one (and any of the two not filled by people on the first list) would be used for New
Hope residents.
PPL currently has an on-site management office at another property less than two
blocks from the proposed site. A full-time site manager lives and is employed there.
All prospective tenants will be carefully screened: each must have a good rental
history, adequate income to afford the rent, and no criminal background.
He stated the total cost of this development is approximately $1.26 million. The
financing is proposed to be a combination of a traditional bank mortgage,
investments from the City of New Hope, and Hennepin County HOME and AHIF
funds. The three affordable units are paid for by the Metropolitan Housing
Opportunities Program, which was created to increase the supply of rental housing
outside of the central cities. The Development Proforma shows a $338,000
contribution from the New Hope EDA.
The work is intended to be performed without substantial displacement of the
existing residents. If existing residents have incomes above 50% of median, they
will receive assistance in finding a new place to live and help with the moving
expenses. Tenants wishing to remain in the rehabbed units would be welcome to do
so provided they meet PPL’s screening requirements.
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 and rehabbed units will add to the
surrounding area’s value and livability. These units will provide an opportunity for
young families or single parents to stay in this community or become part of it. This
development represents the next step in PPL and NCRC’s continued commitment to
the strength and stability of New Hope.
New Hope EDA June 25, 2001
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This property is currently not located in an area where TIF funds can be expended,
therefore, the EDA funds would need to be used for the New Hope portion of the
project in conjunction with $77,992 in CDBG funds that are programmed for
multiple family rehabilitation. Another option would be to add this property to the
area where TIF funds can be expended.
Mr. Chris Wilson, Development Manager with PPL; and George Garnett, Executive
Director of NWCRC, were recognized. They explained that the work is considered
maintenance rather than reconfiguration so the property does not have to be
upgraded to be handicapped accessible housing.
The EDA discussed tax implications and the construction costs. Commissioner
Collier suggested reviewing cost comparisons of similar rehab projects. President
Enck commented on the unknown financial position of the City at the present time,
and suggested postponing discussions until July.
The consensus of the EDA was to continue discussions at the July 30, 2001, Work
Session.
ADJOURNMENT
to
Motion was made by Commissioner Collier, seconded by Commissioner Norby,
adjourn the meeting
. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 9:00 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA June 25, 2001
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