Ed102599.doc
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes October 25, 1999
Regular Meeting City Hall
CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority to order
at 7:55 p.m.
ROLL CALLPresent: W. Peter Enck, President
Pat LaVine Norby, Commissioner
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mark Thompson, Commissioner
APPROVE MINUTES to
Motion was made by Commissioner Norby, seconded by Commissioner Collier,
approve the Regular Meeting Minutes of October 11, 1999
. Voting in favor:
Cassen, Collier, Norby, Thompson; Abstained: Enck. Motion carried.
IMPROVEMENT President Enck introduced for discussion Item 4, Resolution Approving the Cooper
PROJECT NO. 662 Gym Expansion Development Agreement and Facility Use Agreement
Item 4 (Improvement Project No. 662).
Mr. Dan Donahue, City Manager, stated if the EDA adopts the resolution
approving the development agreement and the facility use agreement, then the City
and School District can start the Cooper Gym Expansion project.
He stated the City has agreed to the expenditure of up to $3.25 million on the
Cooper gyms expansion project. In exchange for the development dollars the City
has exclusive access to the facility on evenings and weekends. The School District
will maintain and cover all operational costs for the next 40 years.
Commissioner Collier asked the City Manager to explain the School District’s
inability to enter into long-term agreements.
Mr. Donahue stated state law restricts School Districts from entering into contracts
that exceed two years. He explained that as a result of discussions with the School
District, the City has come up with a plan whereby the District will enter into an
agreement with the City with the intent of maintaining the agreement for a 40-year
period. If the School District terminates the agreement at any time during the 40-
year period, the facility use agreement sets forth a repayment schedule in which the
School District would repay the City for those years remaining on the 40-year
schedule. With the repayment schedule in place then the City is protected for its
investment and it shows that there is a serious intent on both sides to honor the 40
year commitment. He illustrated the repayment schedule based upon this
agreement.
Commissioner Cassen questioned cost overruns and liability issues.
Mr. Steve Sondrall, City Attorney, clarified that the School District will have to pay
for any cost overruns or re-negotiate the construction contract.
New Hope EDA October 25, 1999
Page 1
for any cost overruns or re-negotiate the construction contract.
Mr. Sondrall stated both the School District and the City will carry liability
insurance coverage. Any incidents at the facility will have to be reviewed on a case-
by-case basis to determine responsibility. He stated both parties are protected by
statutory limitations on liability exposure under the law for damages.
Mr. Walerius agreed with Mr. Sondrall’s comments.
Commissioner Thompson asked how the money would be handled if the School
District terminated the agreement and repaid the funds in accordance with the
repayment schedule.
Mr. Donahue stated he believes any funds back to the City would still be considered
TIF funds and would have to be dispersed to the County for redistribution.
Mr. Donahue pointed out that there are project-related costs other than the
gymnasium facility. He illustrated “Exhibit E” outlining the percentage of
responsibility between the City and School District:
City ISD 281
Site Improvements
·
100% 0%
Construction, parking and drainage, perimeter
th
walks, plantings along 47 Avenue, utilities, and
related work
· 30% 70%
Accessible Route to ballfields (and related work)
Building Construction
100% 0%
·
Gymnasium Facility Construction
Tennis Court Construction
30% 70%
·
Construction of 7 tennis courts and related work
30% 30%
·
Expanded fencing, screen planting, access paths
and drainage and related work
Mr. Donahue stated the City’s commitment is $3.25 million and cannot be
exceeded.
Mr. Sondrall pointed out an important factor regarding the cost sharing
arrangements. He stated if the $3.25 million of the City’s contribution is used for
the cost of the gym, then the City would not share in any other costs regardless of
the listed percentages.
Commissioner Collier questioned the time line based upon state law changes
relating to the use of TIF funds.
Mr. Donahue stated the City has been working closely with bond counsel on the
project. He stated the development agreement complies with state law regarding the
use of TIF funds for community facilities. The agreements must be executed by the
end of this year even though the project will not start until year 2000.
EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption:
99-11 “RESOLUTION APPROVING THE COOPER GYM EXPANSION
Item 4 DEVELOPMENT AGREEMENT AND FACILITY USE AGREEMENT
(IMPROVEMENT PROJECT NO. 662).”
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,
New Hope EDA October 25, 1999
Thompson, whereupon the resolution was declared duly passed and adopted, signed
Page 2
by the president which was attested to by the executive director.
foregoing resolution was seconded by Commissioner Norby, and upon vote being
taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Norby,
Thompson, whereupon the resolution was declared duly passed and adopted, signed
by the president which was attested to by the executive director.
PROPERTIES NEAR President Enck introduced for discussion Item 5, Discussion Regarding Property at
TH
55/WINNETKA 5550 Winnetka Avenue North and Other Properties on East Side of Winnetka
Item 5 Between 5340 and 5550 Winnetka.
President Enck suggested that the City consider purchasing properties as they
become available in this area. He recommended potential acquisition of the
commercial property at 5550 Winnetka and suggested land banking it with other
properties until there is sufficient land to redevelop underutilized properties.
Mr. Donahue, City Manager, indicated there is no defined project although the
EDA has previously approved expenditure of EDA and TIF dollars for housing
purposes in this area. He recommended purchasing properties as they become
available and seeking community and neighborhood input on ideas for the future of
this area relative to housing.
The consensus of the EDA was to acquire properties on a willing seller/willing
buyer basis. Discussion ensued regarding the need for communication to area
residents and to emphasize that the City does not intend to force any property
owners out of their homes.
ADJOURNMENT to
Motion was made by Commissioner Norby, seconded by Commissioner Cassen,
adjourn the meeting
. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:25 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA October 25, 1999
Page 3