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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 Page 1 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 Page 2 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 Page 3