Economic Development Report 2020ECONOMIC DEVELOPMENT REPORT
CITY OF NEW HOPE, MINNESOTA
SEPTEMBER 1, 2020
The New Hope Economic Development Report highlights redevelopment projects throughout
the city from the previous year and the tools that are in place to promote development activity.
The city’s Economic Development Authority promotes and facilitates business development and
housing redevelopment activities.
OVERVIEW & HISTORY
CITY OF NEW HOPE OVERVIEW & HISTORY
LOCATION
The city of New Hope is a suburb located northwest
of Minneapolis with strong neighborhoods, an
abundance of parks and recreational opportunities,
excellent schools, and great shopping nearby. The
city has easy access to the entire Twin Cities area
with major arterials of Highway 169, Highway 100,
Interstate 694, and Interstate 394 all nearby.
POPULATION (2010 CENSUS)SIZE/AREA YEAR FORMED
20,339 5.1 square miles 1953
BUSINESSES JOBS SHOPPING CENTERS
480 11,080 5
SCHOOL DISTRICT SCHOOLS PARKS/ACREAGE
Robbinsdale Area (281)5 18/200
HISTORY
In the early 1900s, New Hope was a farming-rich
community. The area was settled as part of Crystal
Lake Township and became the home for many
family farms. As housing developments spread west
from Minneapolis in the 1930s, the residents of Crystal Lake Township began the movement to
incorporate the township. In 1936, the city of Crystal was incorporated. Forming a city, though,
was not supported by all residents in the township. The rural residents in the western half of
the township broke away from the city of Crystal and formed their own township. The resistant
residents, mostly farmers, were unhappy about paying taxes for projects such as street lighting
and sanitary sewer. The name the farmers selected for their new township was a reflection of
the time, New Hope.
Many residents along the New Hope-Crystal border formed groups and requested to be
annexed by Crystal in order to receive what were the most modern city services at the time.
Others, however, were happy to be part of New Hope township and remained separate from
Crystal. Therefore, pockets of New Hope residents were created along the eastern boundary.
By the early 1950s, the rapidly developing township of New Hope chose the fate it had eluded
just over 15 years earlier. In 1953, New Hope incorporated as a city to prevent losing more of
its land and residents to Crystal via annexation. This move was again opposed by the farming
community of New Hope, but housing developments between 1936 and 1953 had made farmers
a minority in New Hope.
When the township was incorporated, it had 600 residents. The city grew rapidly and was home
to over 2,500 people by 1958. This rapid population growth continued through the 1960s, and by
1971, there were 24,000 residents in New Hope. The population of the community has declined
slightly since 1971.
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SUMMARY OF ACTIVITY
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
The city of New Hope’s Economic Development Authority (EDA) promotes and facilitates business
development activities. It considers proposals on a case-by-case basis and utilizes a broad base of public
financing options. Membership of the EDA is identical to that of the New Hope City Council. Council members
are appointed to the commission for terms concurrent with the City Council terms and the mayor acts as
president of the authority. The city manager serves as the executive director. The city employs various
resources to help businesses grow and reach their goals.
BUSINESSES & ASSISTANCE PROGRAMS
Local commercial and industrial businesses are extremely important to the city. The City Council has
undertaken programs and initiatives to address both commercial and industrial properties. These programs
focus on:
• Retaining existing businesses.
• Assisting with expansions.
• Attracting new businesses to vacant available buildings.
• Attracting new construction to a limited number of available vacant sites.
• Improving communication with businesses and responding more effectively to business concerns and
inquiries.
BUSINESS SUBSIDY PROGRAM
The city’s business subsidy program addresses policies related to the use of Tax Increment Financing (TIF),
tax abatement, and other business assistance programs for private development. It serves as a guide
in reviewing applications requesting business assistance. All projects must meet mandatory minimum
approval criteria and the level of assistance is evaluated on a case-by-case basis. Assistance can cover
project costs as allowed for under Minnesota Statutes. The EDA considers using a business assistance tool
to assist private developments in circumstances in which the proposed private project meets one of the
following uses:
• Provides a diversity of housing not currently provided by the private market.
• Provides a variety of housing ownership alternatives and housing choices.
• Promotes affordable housing for low- or moderate-income individuals.
• Promotes neighborhood stabilization and revitalization by the removal of blight and the upgrading in
existing housing stock in residential areas.
• Removes blight and encourages redevelopment in the commercial and industrial areas of the city
in order to encourage high levels of property maintenance and private reinvestment in those areas;
including façade improvement.
• Increases the tax base of the city to ensure the long-term ability of the city to provide adequate services
for its residents, while lessening the reliance on residential property tax.
• Retains local jobs, increases the local job base, and provides diversity in that job base.
• Increases the local business and industrial market potential of the city.
• Encourages additional unsubsidized private development in the area, either directly or through
secondary “spinoff” development.
• Offsets increased costs of redevelopment over and above the costs that a developer would incur in
normal development.
• Accelerates the development process and achieves development on sites that would not be developed
without this assistance.
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CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
PAGE 4
LOAN PROGRAMS
The city has partnered with the lending center at the Center for
Energy and Environment (CEE) to offer a convenient one-stop service
that provides commercial and non-profit property owners in New Hope
access to a comprehensive array of financing and rehabilitation services.
The CEE Loan Program provides financing to New Hope businesses making cost-effective, energy efficiency
improvements. Nonprofit organizations that are interested in reducing their energy costs are eligible to
apply for funds through the CEE to help finance energy-efficient projects implemented in properties owned
and/or occupied by nonprofit entities. Deferred home repair loans are also available to residents of New
Hope through Hennepin County. Loans that address basic safety, maintenance, and health concerns, as
well as home improvements are offered at 0% interest and deferred until the sale of the home, or forgiven
after 15 years.
OUTSTANDING BUSINESS AWARD PROGRAM
The city’s Outstanding Business Award Program was initiated in 2006 to recognize contributions by
businesses to the local community. The purpose of the award program is to recognize businesses for
noteworthy accomplishments such as expanding or improving a building or property, creating new jobs for
New Hope residents, reaching a milestone year in business, or providing outstanding community service.
Nominations are accepted quarterly for the award.
BUSINESS NETWORKING GROUP
The New Hope Business Networking Group was started by New Hope business owners in 2010 to create an
open forum for networking within the city. The group is open and free to all New Hope business owners.
The Business Networking Group meets regularly at one of the participating businesses. The city is also a
long-time member of the TwinWest Chamber of Commerce.
OPEN TO BUSINESS
Open to Business is a partnership between New Hope and the
Metropolitan Consortium of Community Developers (MCCD), an
association of nonprofit community development organizations
serving the Twin Cities. With the help of a matching grant from
Hennepin County, the city works with MCCD to provide business
consultation services and financial advice to small local business
owners and aspiring business owners. The program offers help in
several areas, including:
• Business plan assistance
• Financial management
• Bookkeeping set-up and training
• Loan packaging
• Real estate analysis
• Marketing assistance
• Strategic planning
• Professional referrals
Entrepreneurs can meet with a business advisor one-on-one at New Hope City Hall by scheduling an
appointment. Open to Business facilitated one loan of $105,000 and one credit building loan of $240 in
2013, one credit building loan of $240 in 2014, one direct loan of $12,035 in 2016, and two direct loans
of $100,000 and $25,000 leveraging over $1,000,000 in outside capital in 2017. In 2018, one loan for $240
was facilitated and approved through the program. Open to Business provided services for three new
businesses and one existing business in 2019.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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EMPLOYMENT
There are approximately 480 commercial/industrial/service businesses in the city, 17 of which opened in
2018 and 26 of which opened in 2019. These businesses account for approximately 10,360 jobs in the city.
The city’s 15 largest employers, which are listed below, account for nearly 4,900 of those jobs.
MAJOR EMPLOYERS
Employer Products/Services New Hope-Based Employees
(Total Employees)
Independent School District 281 Education 791 (1,852)
Hy-Vee Grocery & convenience store 632
Minnesota Masonic Home/
North Ridge Care Center Skilled nursing care facility 560
St. Therese Home of New Hope Skilled nursing care facility 544 (1,117)
Horwitz Mechanical contractor 345
Perrigo Pharmaceutical and medicine
manufacturing 323
Intermediate District 287 Education 266 (943)
City of New Hope Government agency 262 including seasonal staff
YMCA Health club 228
Liberty Diversified International Stationery supplies 200
Parker - Hannifin Oildyne Division Hydraulic component production 172
Dakota Growers Pasta Company Macaroni & spaghetti 159
Waymouth Farms, Inc.Salted & roasted nuts & seeds 150
Good Samaritan Society Skilled nursing care facility 136
Avtec Warehousing & metal finishing 102
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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PLANNING & DEVELOPMENT
The city continues to see sustained growth and development as major redevelopment projects come to
fruition. Overall development activity has increased steadily since 2012 and the city anticipates that growth
will continue over the next several years.
DEVELOPMENT ACTIVITY
From 2015-2019, $228,853,933 of reinvestment was approved in the city through construction permits. The
city is striving to increase momentum to continually increase the tax base, while providing the highest level
of services to residents, businesses, and property owners. Building permits for the construction of a new
city center aquatic center and community theater were issued in 2019, accounting for nearly $18 million
of the $38 million in work for the year. The large increase in valuation of work in 2017 can be attributed to
IronWood, a 182-unit luxury apartment project valued at $43 million.
DEVELOPMENT ACTIVITY BY YEAR
2015 2016 2017 2018 2019
Permits issued 2,169 2,607 2,652 2,441 2,459
Fees collected $512,461 $602,391 $867,289 $506,883 $452,267
Valuation of work $33,976,062 $37,740,765 $71,895,249 $46,952,876 $38,288,981
VALUATION OF WORK
2015 2016 2017 2018 2019
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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The following planning and development activities occurred in the last year:
IronWood
Alatus, LLC constructed a four-story, 182-unit luxury
apartment building on the site previously owned by
the city, adjacent to the New Hope Village Golf Course.
The city completed a market feasibility study in the
spring of 2015 to determine what type of
redevelopment was best suited for the site and
concluded that luxury apartments were the most
viable option. The final plat and vacation of easements
for the project were approved in February 2017 and
construction of the $43 million building began in the
summer of 2017. Residents began moving into the
building in early 2019. Amenities include a pool deck, an indoor/outdoor entertainment suite, work-from-
home spaces, create space/do-it-yourself workshops, panoramic views of the New Hope Village Golf Course,
a fitness center, studio, an indoor sauna, a resident coffee bar, and a pet spa.
The city created a redevelopment Tax Increment Financing (TIF) district in conjunction with the project
that authorized the expenditures for land/building acquisition, site improvements and preparation,
utilities, administrative costs, and other qualifying improvements. In 2007, the city purchased five, 12-unit
buildings. With land acquisition, relocation costs, and demolition, the city invested nearly $2.2 million into
the project. In 2017, the city sold the property to Alatus, LLC to facilitate the construction of the building for
$1.443 million. The TIF district allows the city to recoup the land write-down costs and administrative fees
associated with the development.
Windsor Ridge
SVK is constructing 32 new single-family homes on
an 8.7-acre undeveloped site that was owned by the
city for many years. In the fall of 2018, the city
received six proposals from four developers for
the site. After careful consideration, SVK was
selected as the preferred developer for the site.
SVK is in the process of developing 32 new single-
family homes on 65-foot wide lots. The estimated
sales prices for the homes range from the mid-
$300,000’s to the low $400,000’s. At the end of 2019,
eight homes were under construction or completed.
SVK anticipates that the project will be completed
in 2021. The city of Crystal is also working with
another builder to develop 3 lots east of project.
IRON
HORSE
PARK
CITY OF
CRYSTAL
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Police Department & City Hall
A new police department and city hall for the city of
New Hope was completed in 2019. The City Council
approved a bid from Terra General Contractors for
$14.78 million in December of 2017 for the new
building. The sale of $18.435 in general obligation
capital improvement plan bonds at the interest rate
of 2.6339% was also approved to pay for project.
The city began working with a consultant in 2013
to review the space needs of the police department
and city hall, identify deficiencies of the existing
building, and determine if an updated and expanded
or new police station and city hall facility was needed. In September 2015, a space needs citizen’s task
force recommended that a new police station and city hall be constructed to replace the existing facility.
The task force evaluated several potential sites for the building and considered soil boring information. In
September 2016, the task force recommended that the new municipal building be constructed on the civic
center site where the existing swimming pool is located, due to the fact that the pool also needed to be
replaced. In January 2017, the city entered into a five-phase contract for design and construction services
with Wold Architects and Engineers for the new police station and city hall. In August 2017, the City Council
approved design development phase plans and authorized Wold to proceed to the next phase of the
design process – the preparation of construction documents. A groundbreaking for the building took place
on January 5, 2018, and the building was substantially completed in July 2019.
The new 66,000-square foot building provides much needed space for the police department and addresses
many deficiencies of the previous city hall. It has more than twice the square footage of the previous building,
most of which is in the police station/garage and public areas in city hall. It also resolved deficiencies of
the previous building, such as a leaky roof, an HVAC system in poor condition, an inadequate electrical
system, and exterior maintenance issues. The new police station includes a larger lobby with adequate
seating and two adjacent interview rooms to provide privacy for victims, as well as a secure location to
talk with suspects. It includes improved facilities for officers such as a larger roll call room equipped with
technology, individual workstations, and ample locker room facilities. There are larger, more secure areas
for the storage of evidence and records, and a 31-stall underground heated garage large enough to store
all police squads. The new city hall provides additional public space, including two large meeting rooms
equipped with technology and designed to adapt to a variety of uses, and two small conference rooms
between three staff counters. The council chambers has been specifically designed to televise meetings
and accommodate overflow crowds.
Now Mart
A 5,060-square foot gas station and convenience
store opened in December 2018 and a 3,780-square
foot car wash opened in August of 2019 at 7201
Bass Lake Road. The $8.471 million project replaced
a previously underutilized retail building.
The development includes several environmentally
conscious improvements, including a stormwater
collection system that retains all rainwater onsite
and re-uses it for the car wash. A filtration system
recycles and reuses water that is used by the car
wash.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Automotive Concepts
In September of 2019, the New Hope City Council
approved a Tax Increment Financing (TIF) contract
for Automotive Concepts, located at 2919 Nevada
Avenue North, to facilitate the construction of a
22,500 square foot building. Automotive
Concepts specializes in vehicles customization,
and the new building will serve as their “clean”
facility, focusing on body work, and installation of
tires and wheels, etc. The owner of the business
anticipates the building will add about 35 new jobs.
The TIF agreement would pay the developer $150,000 over the next nine years at an interest rate of 4.45%.
The start of the project was delayed due to changing economic conditions.
Cooper High School
A $7.38 million renovation project was completed
at Cooper High School in the summer of 2019. The
project included substantial improvements to the
school’s main entrance and the auditorium. The
façade on the main entrance was replaced with
more glass and the interior was reconfigured to
improve security within the building. The theater
and auditorium were also remodeled. The project
was completed in the summer of 2020.
CubeSmart Self Storage
The previously vacant industrial building at 3216
Winnetka Avenue North was converted into a
CubeSmart self-storage facility between 2018 and
2019. The $3.758 million project included a 23,000-
square foot addition to the second floor at the
southwest corner of the building. Building
improvements included several exterior
modifications and improvements, including the
second floor addition, fresh paint on the existing
building, new roofing, additional windows, parking
area improvements, and a new outdoor storage
area. The facility opened to the public in March of
2019, and includes around 800 storage units that
are available for rent.
Hy-Vee Aisles Online
A 960-square foot drive-through kiosk with three
drive-through grocery pick-up lanes was approved
for construction in the Hy-Vee parking lot at 8200
42nd Avenue North in July 2019. The structure
includes an overhead canopy and new curbing and
landscaping around the building. The $550,000
addition is intended to reduce congestion and
streamline the pick-up process for customers who
purchase groceries online. The start of the project
was delayed due to changing economic conditions.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Holy Trinity Church
Holy Trinity Church received approval in October
2018 to expand their school and daycare center at
4240 Gettysburg Avenue North by approximately
11,123 square feet with a second floor-addition
over the existing school area. The addition adds
more classrooms, a large playroom for students,
and upgrades to the childcare center. The private
school in New Hope has an infant through
preschool program and a kindergarten through
eighth grade school. The $1.85 million project also
included a 1,140 square foot expansion of the
main floor entryway. The expansion was
completed in the fall of 2019.
Arizona Taco Co.
Arizona Taco Co. opened at 9428 36th Avenue
North in September of 2019. It is located in the
Post Haste Shopping Center at 36th Avenue North
& Highway 169. After his first visit to Minnesota,
Chef Ernie Mejia decided to relocate from Arizona
and open an authentic taco restaurant in New
Hope. He is “committed to bringing the
authenticity of Arizona’s taco culture to Minnesota.”
Approximately $130,000 was invested into
the restaurant build-out, which features indoor
seating and take-out options.
AbelConn, LLC
The Minnesota Department of Employment and
Economic Development (DEED) approved a
$100,000 Minnesota Investment Fund loan for
AbelConn, LLC, in 2019. The business is located at
9210 Science Center Drive and has operated in
New Hope since 1961. The loan was intended
to help in completing approximately $860,000 in
leasehold improvements to the building to
accommodate 16 new jobs. AbelConn, LLC
specializes in chassis, board, and component design for electronics used in the aviation and military
industries. One criteria of the loan was that a local municipality sponsor the request by holding a public
hearing and adopting a resolution of support. The city was to act as a pass through entity for the loan. A
stipulation of loan being forgiven required the business to meet job creation and wage commitment goals
within two years. The start of the project and issuance of the loan was delayed due to concerns about
ceiling height and space limitations at the building.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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HOUSING
LOAN PROGRAMS
Loans and financing for home improvement projects are available to residents of New Hope through the
Center for Energy and Environment and Hennepin County.
Center for Energy and Environment
The city has partnered with the lending center at the Center for Energy and Environment (CEE) to offer
a convenient one-stop service that provides residential property owners in New Hope access to a
comprehensive array of financing and rehabilitation services. The Home Improvement Loan Program
encourages and supports the preservation of existing housing by providing loans to improve the basic
livability and/or energy-efficiency of the borrower’s home. The Low Interest Loan Program provides loans
and funds to homeowners to make improvements to their properties. An emergency deferred loan is also
available for homeowners that have emergency improvement needs but do not qualify for other home
improvement loan or grant programs. The program is funded with Economic Development Authority (EDA)
funds. The following loans/subsidies/leveraged funds have been issued to New Hope residents through
CEE since 2015:
2015 2016 2017 2018 2019
Loans/Subsidies/
Leveraged Funds 4 5 9 4 4
Amount $40,693 $46,096 $78,682 $71,438 $68,091
Hennepin County
Hennepin County’s Home Rehab Program enables income-qualified residents to request loans that address
basic safety, maintenance, and health concerns, as well as home improvements. Loans up to $30,000 at
0% interest are available to residents of New Hope. No monthly payments are required and the loans may
be forgiven after 15 years if residents continue to live in and own their home. The program is funded with
Community Development Block Grant (CDBG) funds allocated to Hennepin County through the Department
of Housing and Urban Development. The following loans have been issued to New Hope residents through
Hennepin County since 2015:
2015 2016 2017 2018 2019
Loans 1 1 1 1 1
Amount $30,000 $30,000 $6,840 $12,600 $28,965
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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SCATTERED SITE HOUSING
Over the years, the city has utilized its Economic Development Authority (EDA) to acquire several properties
as part of the Scattered Site Housing Program. The primary focus of the program is to target distressed
single-family properties throughout the city, with the goal of improving residential neighborhoods. The
program currently emphasizes two primary activities: demolition and rehabilitation. When homes are
demolished, the vacant lot is sold to a builder for the construction of a new single-family home. Homes
that are rehabilitated are sold on the open market with no income restrictions. The following scattered site
housing projects were completed and sold over the last year:
Address Previously
Assessed Value Sale Price Percent
Increase Project Type
7215 62nd Ave N $125,000 $350,821 181%Demolition
7311 62nd Ave N $118,000 $319,900 171%Demolition
3856 Maryland Ave N $0 (park land)$413,921 N/A New
construction
SCATTERED SITE HOUSING PROJECTS
7215 62nd Ave N 3856 Maryland Ave N
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Previously Assessed Value Sale Price
$450,000
7311 62nd Ave N
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
PAGE 13
7311 62nd Ave N - Before 7311 62nd Ave N - After
3856 Maryland Ave N - Before 3856 Maryland Ave N - After
7215 62nd Ave N - Before 7215 62nd Ave N - After
SCATTERED SITE HOUSING
In addition to these completed projects, there are eight other scattered site homes under construction or
projects in progress as of when this report was published. Homes sold in 2020 will be showcased in the
2021 Economic Development Report.
• Demolition and rebuild at 5201 Oregon Avenue North (new home sold for $408,320 in 2020).
• Rehabilitation at 3924 Utah Avenue North (rehabilitated home sold for $375,000 in 2020).
• Demolition, lot split, and rebuild at 5353 Oregon Avenue North (two new homes under construction
and projected to sell for $365,000 and $375,000).
• Demolition and rebuild at 6027 West Broadway (new home under construction and projected to sell
for $343,298).
• Demolition and rebuild at 4215 Louisiana Avenue North (selecting builder).
• Demolition and rebuild at 7227 62nd Avenue North (Purchase Agreement signed).
• Rehabilitation with Habitat for Humanity (selecting property).
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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PROPERTY VALUES
2015 2016 2017 2018 2019
Taxable market
value $1,430,939,117 $1,535,054,114 $1,697,092,365 $1,831,436,951 $2,021,382,123
Percent change 7.23%7.28%10.56%7.92%10.37%
PROPERTY VALUES
2015 2016 2017 2018 2019
$300,000,000
$600,000,000
$900,000,000
$1,200,000,000
$1,500,000,000
$1,800,000,000
$2,100,000,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
PAGE 15
MEDIAN HOUSEHOLD VALUES
2015 2016 2017 2018 2019
Median
Household Value $188,500 $196,000 $213,000 $229,000 $244,000
Percent change 4.72%3.98%8.67%7.51%6.55%
HOUSEHOLD VALUE
2015 2016 2017 2018 2019
$35,000
$70,000
$105,000
$140,000
$175,000
$210,000
$245,000