Ed072301
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes July 23, 2001
Regular Meeting City Hall
CALL TO ORDER
President Enck called the meeting of the Economic Development Authority to order
at 9:56 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 Cassen, seconded by Commissioner Norby,
approve the Regular Meeting Minutes of June 25, 2001
. All present voted in
favor. Motion carried.
PROPOSED BOND President Enck introduced for discussion Item 4, Resolution Waiving Notice and
ISSUANCE Consenting to Financing of a Project by the Hennepin County Housing and
Item 4 Redevelopment Authority Within the Area of Operation of the City of New Hope,
Minnesota, Economic Development Authority.
Mr. Ken Doresky, Community Development Specialist, stated Opportunity Partners
is a Minnesota nonprofit operation that owns and operates 17 group homes in
Hennepin County for mentally and physically disabled persons. One of the homes is
located in the City of New Hope at 2705 Ensign Avenue North. The company
originally purchased the group homes with conventional bank financing and secured
the various homes with mortgages. Opportunity Partners has requested that the
Hennepin County Housing and Redevelopment Authority (HRA) issue its tax
exempt revenue bonds and loan the proceeds of such bonds to the borrower so that
the outstanding mortgage loans may be consolidated into a single loan and to
refinance the debt on a tax exempt basis.
Minnesota Statutes state that the Hennepin County HRA may exercise powers of a
housing and redevelopment authority within the territorial boundaries of the
County. The statutes also provide that before the County HRA may participate in a
project that lies within a territory governed by a separate municipal HRA, the
Hennepin County HRA must notify and obtain the consent of the municipal HRA to
its activities within such territory. The New Hope Economic Development
Authority, which has the powers of a housing and redevelopment authority, is being
requested to support this action. Other jurisdictions participating in this venture
include the cities of Crystal, Richfield, Bloomington, St. Louis Park, Golden Valley,
Elk River, and Plymouth.
Mr. Doresky explained that in the past the EDA has supported joint-city bonding
projects to assist in the refinancing and rehabilitation of nonprofit group homes. The
EDA has also implemented PILOT (payment in lieu of taxes) agreements in
cooperation with some tax-exempt property owners. The resolution before the EDA
does not contain this provision but could be amended if so desired by the EDA. He
noted the City of Crystal approved this request subject to a condition that would
require execution of an agreement between the borrower and the City providing for
payment in lieu of taxes.
New Hope EDA July 23, 2001
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Mr. Jon Thompson, President of Opportunity Partners, was recognized.
President Enck commented that the City is gaining more group homes that could
eventually be tax-exempt properties. He noted cities must become active and
provide input to the state legislature.
Mr. Thompson commented of his preference to negotiate a payment alternative
rather than a PILOT agreement. He spoke of the importance and necessity of group
homes and retaining responsible personnel.
The EDA expressed reluctance to adopt a resolution without any guarantees of
payment options.
EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption
“RESOLUTION WAIVING
01-01 subject to the inclusion of a PILOT agreement
NOTICE AND CONSENTING TO FINANCING OF A PROJECT BY THE
HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
WITHIN THE AREA OF OPERATION OF THE CITY OF NEW HOPE,
MINNESOTA, ECONOMIC DEVELOPMENT AUTHORITY”.
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, Collier, Gwin-Lenth, and the following voted against the same: None;
Abstained: None; Absent: Norby; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the executive
director.
ADJOURNMENT
to
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 10:15 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA July 23, 2001
Page 2