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
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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
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