ED112497
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes November 24, 1997
Meeting #13
CALL TO ORDERPresident Pro tem Otten called the meeting of the Economic Development
Authority to order at 7:47 p.m.
ROLL CALLPresent: Cassen, Collier, Norby Otten
Absent: Enck
Staff Present: Malecha, Hanson, Donahue, Leone, McDonald, Cavanagh
APPROVE MINUTESMotion was made by Commissioner Cassen, seconded by Commissioner
Norby, to approve the EDA minutes of November 10, 1997. Voting in favor:
All. Motion carried.
RESOURCE CENTER President Pro Tem Otten introduced for discussion Item 4, Discussion
PROGRAM Regarding Greater Minneapolis Metropolitan Housing Corporation
(IMP. PROJECT 624) (GMMHC) Home Ownership Resource Center Program (Improvement
Item 4 Project No. 624).
Mr. Kirk McDonald, Management Assistant/Community Development
Coordinator, explained that over the past year the Greater Minneapolis
Metropolitan Housing Corporation (GMMHC) has been working with city
staff from the cities of Brooklyn Center, Brooklyn Park, Crystal, New Hope
and Robbinsdale to discuss a “Homeownership Resource Center” program
for the 5-city group. GMMHC has submitted several grant requests to
secure funding operations of the “Homeownership Resource Center.” In
recent conversations with the McKnight Foundation, the Foundation
indicated that it is waiting for the 5-city group, or as many cities as are going
to participate, to finalize their respective funding commitments for the
“Homeownership Resource Center,” prior to the Foundation making a final
commitment of financial support. At this time he stated it is necessary to
determine whether the EDA desires to make a financial commitment to
support the program or not.
Early in 1996, Hennepin County contacted GMMHC and indicated that the
county staff had met with elected officials from suburban Hennepin County
communities, and many of these communities had requested assistance
from the County in coordinating programs to provide a one-stop approach to
assist homeowners with their housing needs. At the same time, the County
Board authorized staff to identify approaches for strengthening the county’s
coordinating role in addressing housing issues and stabilizing the tax base.
Hennepin County engaged GMMHC to look into the possibility of
establishing a Home Ownership Center, like its Northeast Minneapolis
model, in a suburban setting. The county targeted the Northwest area of the
county for this probe. The request was reviewed by the GMMHC Board and
they agreed to consider the feasibility of expanding the program. In
February of 1997, GMMHC entered into a Professional Services Agreement
with Hennepin County whereby they would share the cost, up to $7,400, to
undertake a suburban Hennepin County housing resource center feasibility
New Hope EDA November 24, 1997
Page 1
study. Since that time there have been numerous meetings with staff, city
planners and managers, as well as elected officials and other interested
parties in the communities of Brooklyn Center, Brooklyn Park, Crystal, New
Hope and Robbinsdale. They have also had other meetings with the
McKnight Foundation and the Metropolitan Council in regard to funding such
an initiative.
The “center” would be structured to be a “one-stop resource” for home
ownership and home improvement programs and services needed to
intervene in neighborhoods on the edge; those neighborhoods poised to
change from high homeownership to absentee ownership and from stable
housing stock to disrepair and disinvestment. All home ownership and
improvement resources, public, private and non-profit would be invited to
operate out of this “one-stop resource center” and have their respective
products and/or services available for the homeowner, home buyers, and
renters. The “center” would provide one-stop shopping for comprehensive
housing information, tailored to the circumstances of each family and
property. Information and applications would be available for all of the
dozens of mortgage and home improvement loan programs available.
GMMHC states that the “center” would not duplicate programs and services,
rather would provide an opportunity to collaborate with other providers to
make existing programs and services available at the “center.”
Each of the 5-city group is invited to become a sponsor of the
“Homeownership Resource Center.” GMMHC requests participation in the
program and a city funding commitment as per the initial budget amount of
$5,000 in 1998, $6,000 in 1999, and $7,000 in 2000. This request for each
member of the 5-city group to commit its respective funding is subject to
sufficient funding becoming available from other sources, e.g., the McKnight
Foundation, etc. If projected funding cannot be achieved in 1998, the
operation and related budget will have to be modified to the satisfaction of
the city participants. In addition, there may be other potential funding
resources that may be available for this project, and GMMHC is prepared to
attempt to access these resources on behalf of the 5-city group. GMMHC is
prepared to move forward with its commitment to operate the suggested 5-
city “Homeownership Resource Center” and awaits only the commitment of
the cities to partner with GMMHC on this program.
Mr. McDonald stated staff is requesting direction from the EDA on this
request and wants to know if the EDA is interested in participating in this 5-
city venture. Staff is generally supportive of the program on a pilot project or
trial basis. There are adequate EDA funds available to participate in 1998
and staff would recommend that only a one-year approval for participation
be considered at this time and that funding for subsequent years be
considered with the annual budget process.
Commissioner Collier inquired of the compilation of the list of contractors.
Mr. McDonald stated the planners group would prefer that local contractors
be recommended first.
Commissioner Cassen asked how the cities would promote the program.
Mr. McDonald stated it would be marketed through the City’s newsletter,
New Hope EDA November 24, 1997
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local newspaper, resident guide, and cable television.
He also confirmed that the program would not present a conflict with
CHODO and PPL. He noted both groups are supportive of the proposal.
Commissioner Cassen questioned whether income levels restrict usage of
the program.
Mr. McDonald stated the program would be open to all residents regardless
of income.
Commissioner Collier asked whether the program would provide
alternatives to senior citizens who may be challenged by economic
situations.
Mr. McDonald acknowledged that the program does offer that type of
referral service as well as a wide variety of other resources.
MOTION Motion was made by Commissioner Norby, seconded by Commissioner
Item 4 Collier, Voting in
supporting New Hope participation of $5,000 for 1998.
favor: All. Motion carried.
ENTERPRISE President Pro Tem Otten introduced for discussion Item 5, Discussion
FACILITATION Regarding Establishment of Enterprise Facilitation Program in New Hope
PROGRAM and Crystal and Authorization to Proceed (Improvement Project No. 625).
IMP. PROJECT 625
Item 5 Mr. McDonald stated at the February 24, 1997, City Council public hearing
regarding the use of 1997/98 Urban Hennepin County Community
Development Block Grant (CDBG) funds, the Council authorized the
allocation of $15,000 for a potential joint-city pilot project with the City of
Crystal for the establishment of an enterprise facilitation program. At that
time, staff indicated that the City had been discussing the project with
Crystal and the Hennepin County Department of Jobs and Training and that
the Hennepin County Office of Planning and Development had indicated
that the cities could utilize CDBG funds to finance their portion of the
program due to the micro business/job creation aspect of the project. Staff
requested that the Council set aside the funds for this project with the
understanding that this action would not formally authorize City participation
in the program and that staff would come back to the Council/EDA for
formal authorization to proceed once funding commitments from other
agencies had been made and the program was ready to proceed. Over the
past nine months, staff has coordinated with Crystal, Hennepin County and
Metro HRA to secure funding commitments and staff requests to discuss
this program with the EDA and receive authorization to proceed with the
establishment of the joint-agency program.
Enterprise facilitation is an alternative approach to economic development
which uses a grass-roots, bottom-up strategy. This model spurs economic
development by working with individuals to create business opportunities
rather than relying on the more traditional approach of a city attracting large
businesses to a community. The program would help nurture local business
development and expansion in order to stabilize the local economy and
create new jobs. The program supports local entrepreneurs and encourages
growth within the community.
New Hope EDA November 24, 1997
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Enterprise facilitation is based on the belief that entrepreneurs need
technical assistance (rather than financial) to pursue their ideas. In order to
offer the assistance, an enterprise facilitator would be hired and shared
between the two cities and act as a catalyst to assist/encourage local
business innovation. A local advisory board would be created to oversee the
activities of the facilitator and it is anticipated that the TwinWest New
Hope/Crystal Business Council could potentially serve as a portion of the
board.
A tentative budget for a two-year pilot project is estimated at $50,000 -
$60,000 per year. Metro HRA has made a commitment of $15,000 for a two-
year period and Hennepin County will be making a similar contribution.
Each of the two cities will be making equivalent contributions of $15,000
each for a two-year period and New Hope’s share is proposed to be with
CDBG funds and this use of the funds has been approved by Hennepin
County. Staff will also seek contributions for the program from local
businesses.
The cities believe that this program will greatly benefit the many residents in
our communities who operate businesses out of their home. Generally
speaking, the home-based businesses are successful and provide needed
services in the community. In many cases, however, the businesses have
outgrown the parameters of the home and, preferably, should be located in
a separate location so as not to violate local zoning ordinances and disrupt
the neighborhood. This transition may be prohibitive for several reasons:
inability to raise capital, unfamiliarity with the real estate industry, lack of
formal accounting and business skills, and so forth.
With Metro HRA’s participation, the cities hope to demonstrate how
enterprise facilitation can serve as another tool for self-sufficiency in the
current welfare-to-work movement. The City of New Hope has a local
Section 8 housing representative who provides contract services for the
cities of Golden Valley, Maple Grove, Osseo, and Edina and will be actively
involved in communicating the enterprise facilitation program to these low to
moderate income residents.
Mr. McDonald stated staff is requesting authorization to proceed with the
initiation of this program and to utilize the CDBG funds allocated for this
purpose.
Mr. Donahue, City Manager, indicated that the program has been successful
in other parts of the country.
MOTION Motion was made by Commissioner Collier, seconded by Commissioner
Item 5 Cassen, Voting in favor: All.
authorizing funding of $15,000 for 1998.
Motion carried.
ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner
Norby, to adjourn the meeting. All present voted in favor. The New Hope
EDA adjourned at 8:17 p.m.
Respectfully submitted,
New Hope EDA November 24, 1997
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Valerie Leone
City Clerk
New Hope EDA November 24, 1997
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