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
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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
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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
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