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Ed062899.doc CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes June 28, 1999 Regular Meeting City Hall CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority to order at 7:07 p.m. ROLL CALLPresent: Enck, Cassen, Collier, Norby, Thompson Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Henry, Kern, French, Johnson APPROVE MINUTES Motion was made by Commissioner Cassen, seconded by Commissioner Collier, to approve the Regular Meeting Minutes of June 14, 1999. All present voted in favor. Motion carried. IMP. PROJECT 662 President Enck introduced for discussion Item 4, Resolution Approving 1999 Item 4 Amendment to Master Modification to Redevelopment Plans and Tax Increment Financing Plans and Requesting the Approval of the City Council (Improvement Project No. 662). Mr. Dan Donahue, City Manager, acknowledged the presence of school district 281 representatives. He stated a public hearing is required to consider amending the redevelopment and tax increment financing plan area to include the Cooper High School property. The modification meets the goals and purposes of the City and HRA by providing recreational facilities available for use by the public which will be of benefit to all residents of the City. The amendment will authorize the expenditure of tax increment revenues derived from tax increment districts to pay for the proposed recreational facilities project. Mr. Donahue explained that the City Council recently held a work session and reviewed several options for gyms at Cooper High School. Included in the discussion was the type of agreement between the City and the School District for use of the space. He noted if the project proceeds, the agreement will be similar to the one presently in place between the City of Plymouth and Armstrong High School. The project will be funded by the City with TIF dollars, but would become the property of the School District; then the School District would pay for operational and maintenance costs. The City would use the facility on week nights, weekends and during the summer months. Mr. Donahue noted the City Council preferred Option 2 which includes two full- size basketball courts, bleachers, storage space, and access to existing restrooms in the school. The gyms would be located on the north side of the building. The plan also calls for the replacement of the existing five tennis courts on the north side of the building with the School District funding the rebuilding of the five existing courts and the City funding the construction of two additional courts. The total estimated cost is approximately $3,000,000. New Hope EDA June 28, 1999 Page 1 The EDA expressed support for the proposal. Commissioner Collier pointed out that the City does not yet have a long-term agreement with the School District regarding usage of the New Hope Ice Arena. He noted he hopes this is not indicative of the School District’s action for future projects. EDA Commissioner Norby introduced the following resolution and moved its adoption: RESOLUTION 99-08 “RESOLUTION APPROVING 1999 AMENDMENT TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND REQUESTING THE APPROVAL OF THE CITY COUNCIL ”. 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, Norby, Thompson; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the . president which was attested to by the executive director The EDA Meeting was suspended at 7:25 p.m. to conduct the public hearing at the City Council Meeting regarding this matter. The EDA Meeting was reconvened at 8:10 p.m. IMP. PROJECT 510 President Enck introduced for discussion Item 5, Resolution Approving Item 5 Subordination of Mortgages to New First Mortgage for New Hope Apartments (Improvement Project No. 510). President Enck noted that this merely involves a refinancing effort. EDA Commissioner Collier introduced the following resolution and moved its adoption: RESOLUTION 99-09 “RESOLUTION APPROVING SUBORDINATION OF MORTGAGES TO NEW FIRST MORTGAGE FOR NEW HOPE APARTMENTS (IMPROVEMENT PROJECT NO. 510)”. The motion for the adoption of the foregoing resolution was seconded by Commissioner Norby, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Norby, Thompson; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, . signed by the president which was attested to by the executive director ND 7500 42 AVE. N. President Enck introduced for discussion Item 6, Discussion Regarding Potential nd IMP. PROJECT 474 Acquisition of Industrial Property Located at 7500 42 Avenue North Item 6 (Improvement Project No. 474). Mr. Kirk McDonald, Director of Community Development, indicated staff has met with the property owner who is willing to compromise on the selling price of 7500 nd 42 Avenue North for $482,000. Mr. McDonald noted that the EDA should consider the long term planning and redevelopment goals of the City; no requirement to pay relocation expenses; ground water contamination issues; differences between appraisals; differences in market and taxable values; environmental tests and timeline; availability of Brownfield grants; and costs of nd 42 Avenue redevelopment. New Hope EDA June 28, 1999 Page 2 He explained that if the property was rezoned to B-4 Community Business, the market value would be approximately $844,000. He reviewed anticipated tax revenues and encouraged the EDA to consider the long-term benefits. Discussion ensued regarding pollution issues. Mr. Steve Sondrall, City Attorney, noted for protection to the City the contractual language would clarify that Ardell Engineering would be responsible if additional contamination is revealed. Mr. Sondrall commented that Bjorklund’s appraisal had a major emphasis on comparable sales of individual properties within the area. He stated the appraisal process is very subjective and oftentimes results in variations. MOTION Motion was made by Councilmember Cassen, seconded by Councilmember Norby, Item 4 authorizing entering into a purchase . All present voted in favor. Motion carried. ADJOURNMENT Motion was made by Commissioner Thompson, seconded by Commissioner to adjourn the meeting Collier, . All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:32 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA June 28, 1999 Page 3