ED060997
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes June 9, 1997
Meeting #6
CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority
to order at 8:27 p.m.
ROLL CALLPresent: Enck, Cassen, Collier, Norby, Otten
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Olson
APPROVE MINUTESMotion was made by Commissioner Collier, seconded by Commissioner
Norby, to approve the EDA minutes of April 28, 1997, and May 27, 1997. All
present voted in favor. Motion carried.
IMP. PROJECT 600 President Enck introduced for discussion Item 4, Discussion Regarding
Item 4 Sandpiper Cover Townhome Association Loan Program and Establishment
of Housing Improvement Area (Improvement Project No. 600).
Mr. Kirk McDonald, Management Assistant/Community Development
Coordinator, stated for the past 1-½ years, City staff has met on several
occasions with representatives of the Sandpiper Cove/Rockford Townhome
Association regarding potential City financial assistance to upgrade the
exterior of these properties. Sandpiper Cove is a townhouse development
nd
located at 8101-8953 42 Avenue that contains 36 owner-occupied
townhomes (four 4-plexes and 10 duplexes). The complex is 20 years old
and there are significant exterior deterioration problems. The Association
has sought preliminary bids from contractors who estimated that $350,000 is
needed to make siding, deck, window and other improvements. Although
they have recently taken steps to increase their monthly association dues,
they do not have the financial capability to make these improvements. Due
to the fact that they are a townhouse association consisting of individual
owners, they have been rejected by several banks for loans to make the
needed improvements. That is why they have approached the City for
assistance. Staff has cooperated with them because it is felt that the City
has a vital interest in maintaining multi-family dwellings.
Staff and the City Attorney originally explored utilizing the existing multi-
family financial assistance policy for apartments for this situation, however,
the policy is not applicable because it requires a 50 percent match from the
owners. Over the past year, staff has inquired about programs utilized in
other cities to address townhome/condominium improvements and became
aware of some new legislation that was recently enacted to address these
situations. The program involves City-funded loans to property owners
unable to obtain financing through private means. Instead of securing the
loans as a typical mortgage transaction, the City can assess the benefiting
properties similar to a special assessment project.
Mr. McDonald stated the new legislation allows the City to define a housing
improvement area, make improvements in the area, and assess benefiting
properties. First the City must adopt an enabling ordinance specifically
defining the improvement area and proposed improvements. Before the City
New Hope EDA June 9, 1997
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adopts such an ordinance, a petition with at least 25% of the owners within
the proposed area is required as well as a public hearing.
The EDA inquired of financing options.
Mr. Steve Sondrall, City Attorney, explained that if the EDA is supportive of
the program, he could work with staff and prepare a proposed enabling
ordinance defining the project and improvement area. In July staff could
make a recommendation to the EDA relative to project costs and financing
options. In the interim the homeowners association could contact the
remaining six property owners regarding the petition for creation of an
enabling ordinance.
The petition from the Rockford Homeowners Association containing 30
signatures of the 36 owner-occupied townhomes was presented to the EDA.
The petition requested creation of an enabling ordinance and the conception
of a special district for a housing improvement area.
MOTION Motion was made by Commissioner Collier, seconded by Commissioner
Item 4 Norby,
to accept the petition and direct staff to further explore the loan
Voting in favor: All. Motion carried.
program.
ADJOURNMENT Motion was made by Commissioner Collier, seconded by President Enck, to
adjourn the meeting. All present voted in favor. The New Hope EDA
adjourned at 8:43 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA June 9, 1997
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