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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