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Ed112601 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes November 26, 2001 Regular Meeting City Hall CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 7:53 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 Cassen, seconded by Commissioner Gwin- to approve the Regular Meeting Minutes of August 27, 2001 Lenth, . All present voted in favor. Motion carried. IMP. PROJECT 707 President Enck introduced for discussion Item 4, Discussion Regarding Item 4 Redevelopment/Rehabilitation Project at 7610 Bass Lake Road (Improvement Project No. 707). Mr. Kirk McDonald, Director of Community Development, provided background of 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. The project was last discussed at the September 17 Council work session. At the work session, the majority of the Council voted to approve the rehabilitation project contingent on decreasing the City’s contribution to $218,000 with the addition of a fourth MHOP unit and obtaining Livable Community Task Force input on the project. Also, the Council elected to contribute $5,000 for playground equipment on the site. PPL ensured the Council that an additional $5,000 could be raised to match the City’s contribution for playground equipment. $78,000 of the City’s contribution would be from CDBG funds, the remaining $145,000 would be a no interest loan to the project with EDA funds with payment deferred for 30 years.At the end of the 30 years, the City could collect payment on the $145,000 or opt to continue to defer payment as long as the property continued as affordable housing, thus insuring affordability in perpetuity. He noted this was the mechanism used on the Bass Lake Court Townhome project. Mr. McDonald explained that on October 2, the rehabilitation proposal was presented to the Livable Communities Task Force.The overwhelming input and direction from the Task Force was to proceed with the project. Now that the amounts and sources of city financing have been determined and input has been received from the Livable Communities Task Force, staff requests to discuss other remaining issues and the next project steps with the EDA. · Potential Eminent Domain: PPL and NCRC have recently informed the City that one of the owners of 7610 Bass Lake Road is now unwilling to sell the property. Due to the importance of the project, positive community input and secured financing partners, staff is requesting that the Council consider condemnation procedures on the property. George Garnett, Executive Director of the NCRC has submitted a letter regarding this New Hope EDA November 26, 2001 condemnation request, which states that the City’s financial commitment to Page 1 the project would not increase due to condemnation. Also, Mr. Garnett’s letter states that relocation costs are currently adequately funded in the project budget and would not be impacted by condemnation. Also, the City Attorney has provided correspondence indicating that there is legal basis to Executive Director of the NCRC has submitted a letter regarding this condemnation request, which states that the City’s financial commitment to the project would not increase due to condemnation. Also, Mr. Garnett’s letter states that relocation costs are currently adequately funded in the project budget and would not be impacted by condemnation. Also, the City Attorney has provided correspondence indicating that there is legal basis to show blight and public purpose for this action. If the EDA is willing to consider condemnation of this property, staff will prepare a resolution in support of condemnation and bring the resolution back to the EDA at a future meeting for consideration. · Development Agreement: If the EDA is supportive of condemnation, staff will begin to prepare a development agreement and other necessary agreements for this project. Mr. Kirk McDonald introduced George Garnett (Northwest Community Revitalization Corporation) and Chris Wilson (Project for Pride in Living, Inc.). Mr. Garnett commented that over the past two years they have worked to assemble financing and obtain commitments from the owners. He explained that despite verbal commitments from the owners, they were unable to complete an acceptable purchase agreement. He stated multiple owners and a possible financial position change attributed to the difficulty in coordinating execution of a purchase agreement. Mr. Garnett requested the Council’s support in the use of the City’s powers of eminent domain to facilitate the project. President Enck expressed concern about additional costs involved with eminent domain proceedings. Mr. Garnett acknowledged the City’s limited financial resources. He assured the EDA that it would not have to bear any condemnation costs, and the development agreement would define financial responsibilities of all parties. Mr. Chris Wilson noted the City’s commitment to the project would be maintained through the development agreement. Commissioner Collier inquired regarding relocation costs. Mr. Garnett responded that eminent domain will not change the relocation requirements. He stated relocation costs are tied to financing and are included in the current project budget. He noted the eminent domain process will provide greater control for the relocation process. Mr. Steve Sondrall, City Attorney, stated the legal basis for taking the property will be based on whether there is public purpose for the action. He stated a development agreement and appraisal are necessary. He reported that a resolution could be prepared and presented to the EDA at a future meeting to authorize the condemnation action. MOTION Motion was made by Commissioner Cassen, seconded by Commissioner Gwin- Item 4 directing staff to prepare a resolution authorizing condemnation and Lenth, acquisition of appraisal. All present voted in favor. Motion carried. SECTION 8 President Enck introduced for discussion Item 5, Motion Approving Minor Revision CONTRACT to Section 8 Administrative Services Contract Between the Metropolitan Council Item 5 and City of New Hope. New Hope EDA November 26, 2001 Page 2 Mr. Kirk McDonald, Director of Community Development, explained that when the number of client contracts was at a lower level in the mid-1990s, the New Hope Section 8 Representative took on the additional workload of administering contracts for other neighboring cities to bring in additional revenue for the New Hope program. Client contracts are now at a very high level and staff is requesting a minor revision in the Administrative Services Contract for New Hope to stop performing administrative services for the 41 contracts in Edina and shift the workload back to Metro HRA staff. This revision will help to alleviate the workload of the Section 8 Representative and shift a small portion of the revenue back to Metro HRA, but will still provide adequate financial resources to support the New Hope Section 8 Program. Metro HRA requires a 90-day notification requirement for contract changes and a formal contract amendment would be prepared for EDA consideration in the future if this motion is approved. He stated the change would be effective March 1, 2002. The EDA commended Marlene Isaacson, Housing Representative, for her outstanding performance. MOTION Motion was made by Commissioner Collier, seconded by Commissioner Gwin- Item 5 to approve the revision in the contract Lenth, . All present voted in favor. Motion carried. ADJOURNMENT Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner to adjourn the meeting Collier, . All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:21 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA November 26, 2001 Page 3