020821 City Council Meeting Packet
NEW HOPE CITY COUNCIL
MEETING AGENDA
February 8, 2021
7:00 p.m.
City Hall – Council Chambers
4401 Xylon Avenue North
Mayor Kathi Hemken
Council Member John Elder
Council Member Andy Hoffe
Council Member Michael Isenberg
Council Member Jonathan London
The City Council wants and encourages citizen participation at Council Meetings. Your input and
opinions count and are valuable. You are encouraged to bring forth your comments and issues at
the appropriate point on the agenda.
A 15‐minute maximum Open Forum is held at the beginning of each Council Meeting. At this time
any person may address the Council on any subject pertaining to City business not listed on this
agenda or scheduled as a future agenda item. The Council requests that you limit your presentation
to 3 minutes. Anyone wishing to address the City Council on a particular item should raise their
hand and be recognized by the Mayor. Approach the podium and speak into the microphone by
first stating your name and address. Also, please record your name on the roster at the table near
the door so that your name will be spelled correctly in the minutes.
Individuals should not expect the Mayor or Council to respond to their comments tonight; Council
may refer the matter to staff for handling or for consideration at a future meeting. You are welcome
to contact the city clerk at 763‐531‐5117 after the council meeting.
COUNCIL MEETING BROADCASTS AND STREAMING
Government Access channel 16 programming includes live/taped meeting replays
Live on‐line meetings and past meetings on‐demand are available through www.nwsccc.org.
www.newhopemn.gov
New Hope Values and Vision
City Mission
Strong local government that is proactive in responding to the community needs and issues by delivering quality
public service to all city residents, businesses, property owners, and organizations in a prudent and e cient manner.
Values
Excellence and Quality in the Delivery of Services
We believe that service to the public is our reason for being and strive to deliver quality services in a
highly professional and cost-e ective manner.
Fiscal Responsibility
We believe that fi scal responsibility and the prudent stewardship of public funds and city assets is essential if
residents are to have confi dence in government.
Ethics, Integrity and Professionalism
We believe that ethics, integrity, and professionalism are the foundation blocks of public trust and confi dence and
that all meaningful relationships are built on these values.
Respect for the Individual
We believe in the uniqueness of every individual, and welcome, appreciate, and respect diversity and the di ering
of opinions.
Open, Honest, and Respectful Communication
We believe that open, honest, and respectful communication is essential for an informed and involved citizenry
and to foster a positive environment for those interacting with our city.
Cooperation and Teamwork
We believe that the public is best served when all work cooperatively.
Visionary Leadership and Planning
We believe that the very essence of leadership is to be responsive to current goals and needs, and visionary in
planning for the future.
Vision
e city is a great place to grow as a family, individual, or business.
All within our city are safe and secure.
Essential services will be those that promote a safe and healthy environment for all residents.
Essential services and programs will be enhanced and streamlined, and will be provided in an economical manner
and with measurable results.
e city views residents as its greatest asset and seeks their input and participation.
e city will meet the communication needs of citizens, elected o cials, and city sta .
Strategic Goals
e city will maintain and improve its infrastructure (water distribution, storm water, sewer, roads, parks,
lighting, and city facilities).
e city will use frugal spending and resourceful fi nancial management to maintain its fi scal health.
e city will encourage maintenance, redevelopment, and reinvestment of existing properties to improve
or enhance its tax base.
e city will provide core services with a professional sta who are equipped with the necessary tools and
equipment and given necessary direction.
e city will facilitate and improve communications to promote e ective intergovernmental cooperation
between sta , citizens, and Council.
Adopted by the New Hope City Council, August 2006
Reaffirmed by the New Hope City Council, February 2019
CITY COUNCIL MEETING
City Hall, 4401 Xylon Avenue North
Monday, February 8, 2021
7:00 p.m.
1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE – February 8, 2021
2. ROLL CALL
3. APPROVAL OF MINUTES:
Regular Meeting Minutes – January 25, 2021
4. OPEN FORUM
5. PRESENTATIONS
6. CONSENT BUSINESS
6.2 Approval of financial claims through February 8, 2021
6.4 Resolution delegating authority to the city manager to pay claims prior to city council
approval and make electronic transfers for the payment of claims for 2021
7. PUBLIC HEARING
7.1 Resolution Relating to a Tax Abatement, TEFRA Hearing, and General
Obligation Tax Abatement Bonds; Granting The Abatement and Approving the
Issuance of the Bonds
7.2 Resolution approving application for 2021 Urban Hennepin County Community
Development Block Grant (CDBG) Program funds and authorizing execution of sub‐
recipient agreement with Urban Hennepin County and any third party agreements
8. DEVELOPMENT AND PLANNING
8.1 Motion to authorize preparation of plans and specifications for basketball court
replacement at Little Acre Park (improvement project no. 1059)
9. PETITIONS AND REQUESTS
10. ORDINANCES AND RESOLUTIONS
11. UNFINISHED AND ORGANIZATIONAL BUSINESS
12. OTHER BUSINESS
12.1 Exchange of communication between members of the city council
13. ADJOURNMENT
Memorandum
To: New Hope City Council
From: Kirk McDonald, City Manager
Date: February 4, 2021
Subject: Agenda Items for Monday, February 8, 2021
Commission Candidate Interviews
Interviews begin at 6 p.m. The schedule and applications were emailed to Council in late January. Let the
city clerk know if you need another copy.
Open Forum
We are not aware of anyone who intends to address Council for the open forum.
Items 6.1, 6.2, and 6.3
Item 6.1 – there are no new business license requests.
Item 6.2 ‐ involves routine financial claims.
Item 6.3 – there are no new liability claims to report.
Item 6.4
Per AEM, to be compliant with Minnesota statutes, the city must have a resolution adopted annually that
delegates authority to the city manager to pay financial claims prior to the city council’s formal approval. The
resolution also authorizes electronic funds transfers (EFTs). A list of financial claims is submitted to Council
at each council meeting for approval (item 6.2). The city clerk and I recommend approval of the resolution.
Item 7.1
This is a public hearing for the ice arena bonds. Jason Arsvold from Ehlers will be in attendance. The
refinancing requires a Tax Abatement Hearing and a TEFRA (Tax Equity and Fiscal Responsibility Hearing)
and both will be held as one public hearing.
In 2011 the EDA issued $3,505,000 in Taxable Lease Revenue Bonds/Qualified Energy Conservation
Bonds to fund improvements for the refrigeration system, lighting, building envelope and water
conservation improvements at the arena and other city facilities. At the January 11 Council Meeting a
resolution was adopted scheduling a public hearing relating to a restructuring of the bonds to reduce
interest costs. The resolution set the public hearing for February 8 and authorized the Council consider
awarding the sale of the bonds on February 22. Subsequent to the January 11 meeting, additional
information was prepared by Ehlers and forwarded to Council regarding the bond schedules.
Ehlers recommends the city utilize the $1,545,000 in the escrow to “buy down” the issuance amount on the
new bonds. The bonds will be sold by the city, not the EDA, as “tax exempt” general obligation tax
abatement bonds that are also qualified as 501c3 bonds. With the refinancing and change from “taxable”
Page 2
bonds to “tax exempt” bonds the city will lose the Federal credit on the interest payments, but the lower
interest rates are anticipated to more than make up for the difference and the current interest expense and
the refunding is expected to decrease debt service expense by approximately $147,330 over the next seven
years.
The city will issue $2,095,000 in General Obligation Tax Abatement Bonds and the debt service could be paid
with tax abatement revenues. “Abatement” is the authority that allows the city to issue the bonds and the
city must document the tax capacity on certain parcels. In reality, the city will not need to abate taxes, as the
revenue for the debt payments will be generated by the ice arena fund and park infrastructure levy. This is
the same process and type of bonds that was utilized for the pool/park improvement project.
The city will be able to designate the bonds as “bank qualified” obligations, which broadens the market for
the bonds, which can result in lower interest rates. The city’s most recent bond issues were rated “AA” by
Standard and Poors and a new rating has been requested for these bonds. The sale/award of the bonds will
take place at the February 22 council meeting. The proposed debt issuance schedule is included in the pre‐
sale report. I recommend adoption of the resolution after conducting the public hearing.
Item 7.2
This is a public hearing to consider the projected use of CDBG program funds. The anticipated 2021
allocation is $107,000 which is the same as last year’s allocation. Funding of $16,050 (15% of $107,000) will be
allocated for Public Service Activities. Public Service agencies will apply for the funding directly through
Hennepin County. At the public hearing, Council must decide how to allocate the remaining grant funds of
$90,950. In 2020 the funds were evenly distributed between a Habitat for Humanity project and the single‐
family housing rehabilitation program. Since the city is not anticipating a new partnership with Habitat for
Humanity on a second project, staff’s recommendation is to allocate all of the 2021 CDBG funds towards the
single‐family housing rehabilitation program. Director Sargent and I recommend approval.
Item 8.1
This item authorizes preparation of plans and specifications for basketball court replacement at Little
Acre Park located at 4948 Zealand Avenue North. The court is over 30 years old and requires
replacement. It is recommended that bids be solicited for this work in conjunction with the playground
improvements proposed at Corner Park. Funding for the court replacement will be through the Park
Infrastructure Fund. Director Rader and I recommend approval.
EDA Item 4
This item approves the purchase agreement for the purchase of 3611 Louisiana Avenue North for
$170,000 plus closing costs. The house was constructed in the early 1940s and the assessed value is
$174,000 per Hennepin County. Staff believes the property is a good candidate for a demolition and
rebuilid project. A new single‐family home at the site could have a 2022 taxable value of $390,000. It is
anticipated that the net loss on the project would be $133,761 based on project expenses of $200,761 less
$67,000 for revenue on the sale of the lot. The purchase would be funded through the EDA budget.
Page 3
If you have any questions regarding items in the agenda packet, I would appreciate a call before the
meeting so that I can research any issues and be prepared to respond at the meeting.
New Hope City Council January 25, 2021
Page 1
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes January, 25, 2021
Regular Meeting City Hall, 7:00 p.m.
CALL TO ORDER The New Hope City Council met in regular session pursuant to due call and notice
thereof; Mayor Hemken called the meeting to order at 7:00 p.m.
Due to the COVID‐19 pandemic, some members of the Council, city staff, and
consultants participated remotely.
PLEDGE OF
ALLEGIANCE
The Pledge was not recited since the meeting was not held in the council chambers.
ROLL CALL Council present:
Staff present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Kirk McDonald, City Manager
Dan Boyum, City Engineer
Tim Hoyt, Director of Police
Brad Kallio, Crime Prevention Officer
Valerie Leone, City Clerk
Bernie Weber, Director of Public Works
Marty Williams, Police Sergeant
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Motion was made by Council Member Hoffe, seconded by Council Member Elder,
to approve the work session meeting minutes of January 19, 2021. Voted in favor
thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against
the same: None; Abstained: None; Absent: None. Motion carried.
OPEN FORUM
There was no one present desirous of addressing the council.
PRESENTATIONS:
SHOP WITH A COP
DONATIONS
Item 5.1
Mayor Hemken introduced for discussion Item 5.1, Motion accepting donations
received for Shop with a Cop.
Mr. Tim Hoyt, police chief, explained in the past, Shop with a Cop has literally
been just that ‐ going out to a store and shopping with police officers during the
holiday season. Due to the global pandemic, the structure was changed to assure
the safety of the families. Parents provided Christmas lists to Community
Relations Officer Brad Kallio, who then did the shopping for them. The families
were invited to city hall, Northwood Conference Room, one‐by‐one for
approximately 45 minutes each. There was a half hour between each family to
clean and disinfect the room. Four families were hosted on December 16th, and four
New Hope City Council January 25, 2021
Page 2
on December 17th. In total, 21 children between the ages of 2 years and 16 years old
received gifts. The parents also received Hy‐Vee, Target and Chik‐Fil‐A gift cards.
He emphasized the costs for the event was funded 100% by donations. He thanked
the following donors for their generous contributions: Mike and Allison Isenberg
(Toy Fest), New Hope Crime Fund Board, Frankies Pizza, Chik‐Fil‐A, Good
Samaritan/Lodge of New Hope, and the New Hope Police Department.
MOTION
Item 5.1
Motion was made by London, seconded by Council Member Elder, accepting
donations received for Shop with a Cop. Voted in favor thereof: Hemken, Elder,
Hoffe, Isenberg, London; and the following voted against the same: None;
Abstained: None; Absent: None. Motion carried.
ROTATING VOTES
Please note that votes taken on each agenda item are called by the secretary on a
rotating basis; however, the written minutes always list the mayor’s name first
followed by the council members’ in alphabetical order.
CONSENT AGENDA Mayor Hemken introduced the consent items as listed for consideration and stated
that all items will be enacted by one motion unless requested that an item be
removed for discussion. Mr. Kirk McDonald, city manager, reviewed the consent
items.
FINANCIAL CLAIMS
Item 6.2
Approval of financial claims through January 25, 2021.
MOTION
Item 6.4
Approval of April 1, 2021, as date for the Local Board of Appeal and Equalization
Meeting.
RESOLUTION 2021‐16
Item 6.5
Resolution approving final payment to Omann Brothers, Inc. in the amount of
$210.63 for the New Hope water tower driveway and restoration improvements
(Improvement Project No. 1008).
MOTION
Consent Items
Motion was made by Council Member Elder, seconded by Council Member
Isenberg, to approve the Consent items. All present voted in favor. Motion
carried.
TOBACCO/LIQUOR
VIOLATIONS
Item 7.1
Mayor Hemken introduced for discussion Item 7.1, Appearance by licensees
regarding consequences for failing tobacco or liquor compliance checks.
Mr. Kirk McDonald, city manager, stated tobacco and liquor compliance checks
were conducted on December 23, 2020, by the Police Department. A total of sixteen
businesses were checked and there were six tobacco failures and one off‐sale liquor
failure.
He explained in accordance with city code, the businesses that failed have been
invited to the Council Meeting regarding the alleged violation. The licensee must
admit or deny the allegation. All seven of the alleged violations are considered first
violations relative to the fine schedule. He noted the penalty, as outlined in the code,
for a first time tobacco violation within a 36–month period is a $300 fine and either
New Hope City Council January 25, 2021
Page 3
a suspension of tobacco sales for 3 days or training of all employees by the police
department. The fine for a liquor failure within 24 months is $250 fine and either a
suspension of tobacco sales for 3 days or training of all employees by the police
department. Mr. McDonald informed Council that Sergeant Williams and Chief
Hoyt are in attendance to address any questions regarding the failures. He
recommended that after calling upon each business, the Council make one motion
to impose the fines.
Mayor Hemken called upon representatives of the following businesses:
Business Address Violation
Now Mart 7201 Bass Lake Road Tobacco
New Hope Fuel & Wash 9400 49th Ave N Tobacco
Hy‐Vee Wine & Spirits 8202 42nd Ave N Tobacco and Liquor
New Hope Smoke Shop 2767 Winnetka Ave N Tobacco
Family Dollar 2733 Winnetka Ave N Tobacco
Big B’s BP Gas 7800 27th Ave N Tobacco
Mr. Chris Robbins of Now Mart admitted to the alleged violation and requested the
identification training in lieu of the three‐day suspension.
It was noted that Mr. Adam Schlangen of New Hope Fuel & Wash called the city
prior to the meeting and admitted to the alleged violation. He requested the three‐
day suspension.
Mr. Jack Stortenbecker of Hy‐Vee Wine & Spirits admitted to the alleged violations
and requested the identification training in lieu of the three‐day suspension.
Mr. Maamoun Askri of New Hope Smoke Shop admitted to the alleged violation
and requested the identification training in lieu of the three‐day suspension.
Mayor Hemken requested information regarding Family Dollar. Ms. Valerie Leone,
city clerk, indicated Family Dollar did not respond to the city’s initial
correspondence or phone call. It was noted that a licensee who fails to appear at the
meeting waives his right to contest the allegation of the illegal sale, and the city may
impose the fine and suspension.
Kim and Brad Carlson of Big B’s BP Gas admitted to the alleged violation and
requested the identification training in lieu of the three‐day suspension.
Mayor Hemken asked the businesses to be more diligent regarding tobacco sales
to prevent sales to minors. Mayor Hemken thanked everyone for participating in
the virtual meeting. Businesses were advised that the city clerk will mail notices
regarding the fine and option for training in lieu of a license suspension.
MOTION
Item 7.1
Motion was made by Elder, seconded by Council Member London, to impose
fines as outlined in city code 8‐7 and 10‐23. Voted in favor thereof: Hemken, Elder,
Hoffe, Isenberg, London; and the following voted against the same: None;
Abstained: None; Absent: None. Motion carried.
New Hope City Council January 25, 2021
Page 4
PUBLIC WORKS
FACILITY
IMPROVEMENTS
PHASE 1
(IMPROVEMENT
PROJECT NO. 1039)
Item 8.1
Mayor Hemken introduced for discussion Item 8.1, Resolution authorizing
preparation of plans and specifications for Phase 1 improvements at the Public
Works facility (Improvement Project No. 1039).
Mr. Dan Boyum, city engineer, reported at its January 19 work session, Council
reviewed the proposal to complete the public works facility improvements in two
phases. He stated the estimated cost of Phase I improvements is $1,690,001.83 and
the funding source is the building replacement reserves fund that was created in
2017. Mr. Boyum reviewed the proposed schedule with presentation of plans and
specifications at the April 12 Council Meeting and construction to occur in June.
RESOLUTION 2021‐17
Item 8.1
Council Member Isenberg introduced the following resolution and moved its
adoption: “RESOLUTION AUTHORIZING PREPARATION OF PLANS AND
SPECIFICATIONS FOR PHASE 1 IMPROVEMENTS AT THE PUBLIC
WORKS FACILITY (IMPROVEMENT PROJECT NO. 1039).” The motion for the
adoption of the foregoing resolution was seconded by Council Member Hoffe, and
upon vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Hoffe, Isenberg, London; and the following voted against the same: None;
Abstained: None; Absent: None; whereupon the resolution was declared duly
passed and adopted, signed by the mayor which was attested to by the city clerk.
JUST DEEDS
COALITION
Item 10.1
Mayor Hemken introduced for discussion Item 10.1, Resolution condemning the
use of discriminatory covenants and approving participation in Just Deeds
coalition.
Mr. Kirk McDonald, city manager, stated the City Council directed staff to prepare
a resolution in support of the Just Deeds coalition at the January 19, 2021, work
session. The coalition “is committed to acknowledging and addressing systemic
racism in housing in Minnesota.” Staff recommends that the City Council pass a
resolution disavowing and condemning the past use of discriminatory covenants,
prohibiting discriminatory covenants from being used in the future, and directing
city staff to participate in the work of the Just Deeds Coalition to educate the
community about this and other historically discriminatory practices.
RESOLUTION 2021‐18
Item 10.1
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION CONDEMNING THE USE OF DISCRIMINATORY
COVENANTS AND APPROVING PARTICIPATION IN JUST DEEDS
COALITION.” The motion for the adoption of the foregoing resolution was
seconded by Council Member Isenberg, and upon vote being taken thereon, the
following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the
following voted against the same: None; Abstained: None; Absent: None;
whereupon the resolution was declared duly passed and adopted, signed by the
mayor which was attested to by the city clerk.
EXCHANGE OF
COMMUNICATION
Item 12.1
Mayor Hemken introduced for discussion Item 12.1, Exchange of communication
between members of the City Council.
Mayor Hemken reported on upcoming events.
New Hope City Council January 25, 2021
Page 5
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Elder, to adjourn the meeting, as there was no further business to come before
the Council. All present voted in favor. Motion carried. The New Hope City
Council adjourned at 7:29 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
G:\City Manager\AGENDA\6.2 R‐Approval of Claims Merge Doc.docx
Request for Action
February 8, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Approval of claims through February 8, 2021
Requested Action
Claims for services and commodities purchased through this period are listed on the Check Disbursement
Report
Attachments
Check Disbursement Report
Agenda Section
Consent
Item Number
6.2
I:\RFA\City Manager\2021\financial claims authority\6.4 Q&R ‐ EFT payments 02.08.21.docx
Request for Action
February 8, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution delegating authority to the city manager to pay claims prior to city council approval and
make electronic funds transfers for the payment of claims for 2021
Requested Action
Staff recommends that the Council adopt the resolution regarding the payment of financial claims.
Background
At each council meeting, as item 6.2, the City Council approves financial claims covering checks and electronic
payments made since the previous council meeting. AEM has advised the city of MS 412.271 and 471.38 that
require the Council to adopt a resolution authorizing the payment of claims prior to Council approval and delegate
authority to make electronic funds transfers.
A similar resolution will be presented each January when the Council is asked to adopt other routine resolutions.
Attachment
Resolution
Agenda Section
Consent
Item Number
6.4
City of New Hope
Resolution No. 2021 ‐
Resolution delegating authority to the city manager to
pay claims prior to city council approval and make
electronic funds transfers
for the payment of claims for 2021
WHEREAS, Minnesota Statute 412.271 Subd. 8. requires the City Council delegate
authority to pay claims prior to City Council approval; and
WHEREAS, a Minnesota Statute 471.38 Subd. 3a. requires the City Council annually delegate
authority to make electronic funds transfers; and
WHEREAS, the City uses electronic funds transfers whenever possible as they are much
more efficient and eliminates the risk of lost or mishandled check payments; and
WHEREAS, all electronic funds transfers are subject to:
1. Annual city council designation of authority to the city manager and their
designee;
2. The cityʹs internal control procedures;
3. A list of all electronic transactions to be submitted for approval to City Council
at its next regular meeting.
NOW, THEREFORE, BE IT RESOLVED authority to make electronic funds transfers and pay
claims prior to City Council approval shall be delegated to City Manager and
their designee.
Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 8th day of
February, 2021.
______________________________
Mayor
Attest: ________________________
City Clerk
I:\RFA\City Manager\2021\Refinancing 2011A bonds\02.08.20 bonds public hearing\7.1 Q ‐ Issuance of Bonds.docx
Request for Action
February 8, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution relating to a tax abatement, TEFRA hearing, and general obligation tax abatement bonds; granting
the abatement and approving the issuance of the bonds
Requested Action
Staff recommends that the City Council conduct a public hearing and approve a resolution relating to a tax
abatement, TEFRA hearing, and general obligation tax abatement bonds; granting the abatement and
approving the issuance of the bonds. Representatives from Ehlers will be in attendance at the meeting to
explain the action being taken and respond to questions.
Policy/Past Practice
The city has coordinated with Ehlers on the issuance of the bonds and refinancing to achieve savings in the
past to assist with the city goal of prudent financial management of city resources.
Background
At the January 11, 2021, council meeting the Council was informed that staff had been coordinating with
Ehlers and AEM on the potential refinancing of the Ice Arena Energy Conservation Bonds that were issued in
2011 to save on interest costs over time.
At that meeting the pre‐sale report prepared by Ehlers was discussed and the majority of the Council
approved a resolution providing for the sale of $2,095,000 General Obligation Tax Abatement Bonds, Series
2021A. The resolution stated that the City Council had determined it is necessary and expedient to finance a
current refunding of the 2011 EDA bonds and had retained Ehlers to assist the city for the sale of the bonds. It
stated that the Council would meet on February 22 to consider awarding the sale of the bonds. The resolution
also stated that employees of the city were authorized to cooperate with Ehlers on the preparation of an
official statement for the bonds. Subsequent to the council meeting additional information was prepared by
Ehlers on the bond schedules and forwarded to the Council. An official statement was prepared and the
public hearing for the bonds is being conducted at this council meeting.
In 2011 the EDA issued $3,505,000 in Taxable Lease Revenue Bonds/Qualified Energy Conservation Bonds to
make refrigeration system, lighting, building envelope and water conservation improvements at the arena
and other city facilities. The bonds were issued by the EDA at an interest rate of 5% as “taxable” since there
was an annual rebate from the Federal Government that made them more cost effective than completing
them as “tax exempt” bonds. The bonds were set up with interest only payments of $175,250 per year with a
balloon payment of $3,505,000 in 2028. The EDA was also required to set aside annual payments into an
escrow fund for payment of the balloon and there is currently $1,545,000 in the escrow account. The Federal
credit on the interest payments is $117,768 per year, so the interest expense to the city is $57,482 per year.
Agenda Section
Public Hearing
Item Number
7.1
Request for Action, Page 2
The bonds are now “callable” and with sharply declining interest rates our financial consultants are advising
to restructure the bonds to have both principal and interest payments starting in 2021 to save on interest
costs. They are recommending the city utilize the $1,545,000 in the escrow to “buy down” the issuance
amount on the new bonds. The bonds will be sold by the city, not the EDA, as “tax exempt” general
obligation tax abatement bonds that are also qualified as 501c3 bonds. With the refinancing and change from
“taxable” bonds to “tax exempt” bonds the city will lose the Federal credit on the interest payments, but the
lower interest rates are anticipated to more than make up for the difference and the current interest expense
and the refunding is expected to decrease debt service expense by approximately $147,330 over the next
seven years. Per the attached pre‐sale report prepared by Ehlers, the city will issue $2,095,000 in General
Obligation Tax Abatement Bonds and the debt service will be paid with tax abatement revenues. The city will
be able to designate the bonds as “bank qualified” obligations, which broadens the market for the bonds,
which can result in lower interest rates. The citys most recent bond issues were rated “AA” by Standard and
Poors and a new rating has been requested for these bonds. The sale/award of the bonds will take place at the
February 22 council meeting. The proposed debt issuance schedule is included in the pre‐sale report.
Public Hearing
Two public hearings are required for the refinancing and the attached resolution combines the two actions
into one public hearing with one resolution.
1. Granting of Tax Abatement Hearing
The resolution states that the city is authorized to grant an abatement of property taxes imposed by the
city on a parcel of property if certain conditions are met. Abatement is the authority that allows the city to
issue the bonds and the city must document and identify that there is enough tax capacity on parcels to
cover the payment on the bonds. The property identification numbers for the parcels are included in the
resolution with a map attached to the resolution. These parcels were selected since they were larger
taxpayers and are not located in a Tax Increment Financing District. In reality, the city will not need to
abate the taxes, as the revenue for the bond payments will come from the ice arena fund and park
infrastructure tax levy, but the city needs to show that it could abate taxes to make the payments if those
revenue sources would fall short.
2. TEFRA (Tax Equity and Fiscal Responsibility Hearing
The resolution also states that the ice arena facility is used for the benefit of qualified 501(c)(3)
organizations, including but not limited to hockey and figure skating associations, the general public, the
city, and local school district. This allows the abatement bonds to be tax exempt.
The resolution prepared by Dorsey & Whitney, bond counsel for the city, concludes by stating that the
property tax abatement is granted and the issuance of the bonds is hereby approved. A bond rating call with
Standard & Poors has been scheduled for February 11 and the sale of the bonds will take place at the
February 22 council meeting. Staff recommends approval of the resolution.
Attachments
Resolution
Abatement Properties
Public Hearing Notice
Feb. 8 Ehlers Memo
Request for Action, Page 3
Feb. 2 AEM Memo
Jan. 6 Dorsey & Whitney Correspondence
Jan. 14 Additional Information from Ehlers
Jan. 11 Council RFA and Pre‐sale Report
Dec, 29 Ehlers Correspondence
4832-5671-2664\3
City of New Hope
Resolution No. 21-____
RESOLUTION RELATING TO A TAX ABATEMENT, TEFRA HEARING,
AND GENERAL OBLIGATION TAX ABATEMENT BONDS; GRANTING
THE ABATEMENT AND APPROVING THE ISSUANCE OF THE BONDS
BE IT RESOLVED by the City Council (the “Council”) of the City of New Hope,
Minnesota (the “City”), as follows:
Section 1. Authorization and Recitals.
1.01. The City, pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815, as
amended (the “Act”), is authorized to grant an abatement of the property taxes imposed by the City
on a parcel of property, if certain conditions are met, through the adoption of a resolution
specifying the terms of the abatement.
1.02. The City proposes to purchase and refinance the purchase of certain improvements
(as hereinafter described, the “Improvements”), the acquisition of which was originally financed
with proceeds of the New Hope Economic Development Authority, Minnesota Taxable Lease
Revenue Bonds (City of New Hope Annual Appropriation Lease Obligations) (Qualified Energy
Conservation Bonds-Direct Payment to Issuer), Series 2011A, dated, as originally issued, as of
December 1, 2011 and issued in the original principal amount of $3,505,000 (the “Refunded
Bonds”). The Improvements consist of energy conservation improvements, including a new roof
and new ice rink flooring / ammonia refrigeration, to the New Hope Ice Arena located at 4949
Louisiana Avenue North in the City (the “Facility”). The Facility is used for the benefit of
qualified 501(c)(3) organizations, including but not limited to hockey and figure skating
associations, the general public, the City, and local school district.
1.03. On the date hereof, this Council conducted a public hearing:
(a) pursuant to the Act, on the date hereof, this Council conducted
a public hearing on the desirability of granting an abatement of property taxes on
certain properties expected to be benefited by the Improvements, which properties
are identified as follows (the “Properties”):
2011821220012 0611821230078 1811821110003 1711821220001
1911821440086 1711821220036 1811821330103
(b) for purposes of complying with the requirements under the
Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”), pursuant to Section
147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), on the
proposal that the City issue its general obligation tax abatement bonds in an aggregate
principal amount not to exceed $2,095,000 (the “Bonds”), under Sections 469.1813
and Chapter 475, as amended, for the purpose of financing the acquisition of the
Project and refinancing the Refunded Bonds.
Notice of the public hearing was duly published as required by law in the
Crystal/Robbinsdale/New Hope/Golden Valley Sun Post, the official newspaper of the City, on
January 21, 2021, which date is no fewer than ten and no more than 30 days prior to the date
hereof.
Section 2. Findings. On the basis of the information compiled by the City and elicited
at the public hearing referred to in Section 1.03, it is hereby found, determined and declared:
2.01. The City expects that the benefits of the proposed abatement are not less than the
costs of the proposed abatement. The public benefits that the City expects to result from the
abatement are the provision of recreational facilities for the benefit of residents of the City.
2.02. The Properties are not located in a tax increment financing district.
2.03. The granting of the proposed abatement will not cause the aggregate amount of
abatements granted by the City under the Act in any year to exceed the greater of (i) ten percent
(10.00%) of the City’s net tax capacity for the taxes payable year to which the abatement applies,
or (ii) $200,000.
2.04. It is in the best interests of the City to grant the tax abatement authorized in this
Resolution.
2.05. Under Section 469.1813, Subdivision 9 of the Act, it is not necessary for the City
to obtain the consent of any owner of any of the Properties to grant an abatement.
Section 3. Granting of Tax Abatement.
3.01. A property tax abatement (the “Abatement”) is hereby granted in respect of
property taxes levied by the City on the Properties for a period of eight (8) years. The Abatement
will reduce all or a portion of the taxes for each of the Properties, and the total amount of the
Abatement is estimated to be approximately $2,095,000.
3.02. The City shall retain the Abatement and apply it to payment of all or a portion of
the costs of refinancing the Improvements or to the payment of bonds of the City issued to
refinance the Improvements and refund the Refunded Bonds.
3.03. The Abatement may be modified or terminated at any time by the Council in
accordance with the Act.
Section 4. Issuance of the Bonds. The issuance of the City’s General Obligation Tax
Abatement Bonds, not exceeding the amount above described, for the purpose above described, is
hereby approved.
Adopted by the City Council of the city of New Hope this 8th day of February, 2021.
Mayor
ATTEST:
City Clerk
MEMO
TO: KIRK MCDONALD
FROM: VICKI HOLTHAUS
SUBJECT: 2021A REFUNDING BONDS (2011A ICE ARENA BONDS)
DATE: FEBRUARY 2, 2021
BACKGROUND
On December 29, 2020, Ehlers and Associates, Inc. presented a recommendation to the City Council to refinance the 2011A Bonds
(Ice Arena Energy Improvements). The memo addressed the basis for the restructuring of these bonds and laid out the action steps
necessary to facilitate the restructure.
“There will be two public hearings required for the refinancing (i) granting of an abatement; and (ii) TEFRA (Tax Equity and Fiscal
Responsibility Act - for the 501c3 status of the bonds). We will be providing the Council with a presale report that will provide more
financial detail on the refunding at their January 11, 2021 meeting to authorize moving forward with the sale.”
At the January 11, 2021 City Council meeting, the City received a pre-sale report and presentation from Jason Aarsvold indicating an
estimated savings of $147K on the refinance of the 2011A bonds (actual savings will be dependent on market conditions on the day of
sale). In addition, Mr. Aarsvold laid out the steps necessary to complete the refunding, including the public hearings to be scheduled
in February.
The action requested by the City Council on February 8 includes calling for a public hearing on the proposed 2021 tax abatement
bonds. Ehlers and Associates, Inc. have identified seven properties which will be included in the abatement as prescribed by
Minnesota Statutes. It is important to clarify that this does not mean the parcels in question will not pay property taxes. The parcels
will pay property taxes, as usual. The abatement is an administrative process that will be coordinated with the County by the City
Clerk and AEM FS.
January 14
Additional Information
From Ehlers
January 11 Council RFA
Pre-sale Report
December 29 Ehlers
Correspondence
I:\RFA\COMM DEV\2021\City Council\2‐8‐21 CDBG Allocation Public Hearing\7.2 Q ‐ 2021 CDBG Public Hearing.docx
Request for Action
February 8, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Jeff Sargent, Director
Agenda Title
Public Hearing – Resolution approving application for 2021 Urban Hennepin County Community
Development Block Grant (CDBG) Program funds and authorizing execution of sub‐recipient agreement with
Urban Hennepin County and any third party agreements.
Requested Action
This is a public hearing, and after receiving public comments, staff is requesting that the City Council approve
the attached resolution approving the proposed use of 2021 Urban Hennepin County Community
Development Block Grant Program Funds and authorizing execution of the sub‐recipient agreement with
Hennepin County and any third party agreements.
Policy/Past Practice
The Federal CDBG Program requires that municipalities hold a public hearing for consideration of the
projected use of funding within the imposed timeframe. The city must formally request that funding be applied
to specific programs at a public hearing. Once a public hearing is conducted, the request is forwarded to
Hennepin County for final approval.
All community allocations are based on the Department of Housing and Urban Development (HUD) formula
using the community’s share of three factors: 1) urban county total population; 2) number of persons with
incomes at or below poverty level; and 3) overcrowded housing units. Poverty data is a double‐weighted factor
in the formula. All formula figures are determined using 2010 census data.
Background
In early 2021, Hennepin County notified the city of its 2021 CDBG requirements. On July 1, 2021, the city will
receive approximately $107,000 in CDBG funds. The 2021 allocation is roughly the same as the final allocation
in 2020, which was $107,000. The city is able to allocate these funds to programs that meet the requirements set
forth by the Department of Housing and Urban Development (HUD). Hennepin County has established a
February 28, 2021, deadline for all cities to declare programming for their respective funds.
Hennepin County will continue to distribute the funding for Public Service Activities. HUD rules limit grantee
use of CDBG funding for public services to 15 percent. This year that 15% equals approximately $16,050. Public
Service agencies will apply for the funding directly through Hennepin County, alleviating the need for
individual cities to distribute the grant funds. Funding for Public Service activities will be awarded through a
single combined, competitive RFP covering all the cities in the county CDBG program. Fifteen percent of the
overall county CDBG allocation will be set‐aside for this purpose. It is estimated that the Public Service agencies
will receive the same amount of funding as they typically have in the past.
At the public hearing, the city must decide how to allocate the remaining grant money not used for the Public
Service Activities. This year, the city must allocate $90,950 to a qualified CDBG program. In 2020, the city
distributed funds evenly between a Habitat For Humanity project, located at 8720 – 47th Avenue, and the
Single‐Family Housing Rehabilitation Program. Since the city is not anticipating a new partnership with
Agenda Section
Public Hearing
Item Number
7.2
Request for Action, Page 2
Habitat For Humanity on a second project, staff’s recommendation would be to allocate all of the 2021 CDBG
funds towards the Single‐Family Housing Rehabilitation Program.
Single Family Housing Rehabilitation Program
The Single Family Housing Rehabilitation Program has been administered on behalf of the city by Hennepin
County and is responsible for the rehabilitation of numerous houses in the city over the years. All of the funds
previously allocated to this program have been committed and will be expended in the near term. Hennepin
County representatives informed staff that there is still a large need for these funds in New Hope.
Scattered Site Housing Program
In past years, the city has used CDBG funds towards the Scattered Site Housing Program, focusing the use of
the money on acquisition and demolition of substandard homes. The city proved that the homes demolished
met the “slum and blight” standard imposed by Hennepin County, in order to remove the homes and rebuild
new market‐rate houses. The city has been informed that Hennepin County has changed their interpretation
of “slum and blight,” and that New Hope will most likely not be able to use CDBG funds to acquire and
demolish houses because they would not meet the minimum requirements of “slum and blight”. The city could
still use CDBG funds to acquire and renovate homes, however the home would then need to be sold to a
qualified low‐to‐moderate‐income individual or family.
Recommendation
Staff recommends allocating the entire 2021 CDBG allocation towards the Single‐Family Housing
Rehabilitation Program, as there is a large need for this assistance in the city.
After the public hearing, staff recommends that the Council close the public hearing, make any modifications
to the recommended funding amounts and approve the attached resolution.
Attachments
Resolution
CITY OF NEW HOPE
RESOLUTION NO. 21 ‐
RESOLUTION APPROVING PROPOSED APPLICATION FOR 2021 URBAN HENNEPIN
COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FUNDS AND
AUTHORIZING EXECUTION OF SUBRECIPIENT AGREEMENT WITH
URBAN HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS
WHEREAS, the city of New Hope, through execution of a Joint Cooperation Agreement with
Hennepin County, is cooperating in the Urban Hennepin County Community Development Block
Grant Program; and
WHEREAS, the city of New Hope has developed a proposal for the use of 2021 Urban Hennepin
County Community Development Block Grant funds;
WHEREAS, the city held a public hearing on February 8, 2021, to obtain the views of citizens on
housing and community development needs and priorities and the City’s proposed use of $90,050 from
the 2021 Urban Hennepin County Community Development Block Grant.
BE IT RESOLVED, that the City Council of New Hope approves the following project(s) for
funding from the 2021 Urban Hennepin County Community Development Block Grant Program and
authorizes submittal of the proposal to Urban Hennepin County/Consolidated Pool.
Activity CDBG
Allocation
NRA – Single Family Housing Rehabilitation
$90,050
Neighborhood Revitalization Activities ‐ Total $90,050
BE IT FURTHER RESOLVED, that the City Council hereby authorizes and directs the Mayor
and City Manager to execute the Subrecipient Agreement and any required Third Party Agreement on
behalf of the City to implement the 2021 Community Development Block Grant Program.
BE IT FURTHER RESOLVED, that should the actual amount of FY2021 CDBG available to the
city be different from the preliminary amount provided to the city, the City Council hereby authorizes
the City Manager to adjust the following activity budget(s) proportionally to reflect the actual amount
of funding available.
Activity CDBG
Allocation
NRA – Single Family Housing Rehabilitation $90,050
Neighborhood Revitalization Activities ‐ Total $90,050
Adopted by the City Council of the city of New Hope, Hennepin County, Minnesota, this 8th day of
February, 2021
By:
________________________________________________
Kathi Hemken, Mayor
ATTEST: ________________________________
Valerie Leone, City Clerk
I:\RFA\P&R\PARKS\2021\#1059 Little Acre Basketball Court\Authorize Plans and Specs\8.1 Q ‐ Authorize plans and specs for Basketball Court
replacement at Little Acre Park.docx
Request for Action
February 8, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: Parks & Recreation
By: Susan Rader, Director
Agenda Title
Motion to authorize preparation of plans and specifications for basketball court replacement at Little Acre
Park (Improvement Project No. 1059)
Requested Action
Staff is recommending that the City Council authorize the city engineer to prepare plans and specifications
for basketball court replacement at Little Acre Park, located at 4948 Zealand Avenue North (Improvement
Project No. 1059). It is anticipated that work would begin late spring with the majority of the project being
completed by mid‐summer.
Background
The basketball court at Little Acre Park was built more than 30 years ago. Last resurfaced in 2014, this court
has had varying levels of repair over the years.
Annual inspections of court surfaces are performed by staff at all of the parks. These inspections determine
maintenance priorities to best use the funding dedicated for court repairs. Court surfaces need periodic crack
filling, resurfacing and/or repainting to keep them safe for users. Painted surfaces that are too worn become
dangerous and cracks on the courts become potential tripping hazards. When court surfaces have been
resurfaced too many times, the layers built up on the surface easily flake off, making continued resurfacing
improvements impossible.
The court at Little Acre Park has reached the point of needing replacement. Soils beneath the court surface
have led to repeated cracking, peeling of the court surface as well as heaving the basketball hoop bases. Over
the years, the existing hoops have continued to shift and lean into the court. The proper and safe way to
correct the basketball hoop issue is to remove the footings and replace the entire hoop. Staff recommends
correcting the hoop issue as part of this project.
Staff is proposing to solicit bids for the Little Acre Park court replacement along with the Corner Park
playground equipment improvements, as we have combined park projects in the past.
Funding
This project is included in the 2021 CIP and the 2021 Park Infrastructure budget as shared with the Council
during budget discussions.
The amount for the Little Acre Park basketball court, approximately $80,000, is available as part of the parks
maintenance in the Park Infrastructure Fund which is levy funded each year. A total of $100,000 is budgeted
for court maintenance and repairs in 2021.
Agenda Section
Development &
Planning
Item Number
8.1
Request for Action, Page 2
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replacement at Little Acre Park.docx
Attachments
2021 CIP list
Aerial views of Little Acre Park
Photos of Little Acre Park basketball court
City of New Hope, MinnesotaCapital Improvement Plan - Parks Infrastructure Fund 9233Schedule of Planned Capital Outlay 2020 to 20302020 2021 2022 2023 2024 2025Year toEstimatedEstimated Estimated Estimated Estimated EstimatedDepartment ReplaceItem CostAmountsAmountsAmountsAmountsAmountsAmountsParks & Recreation 2020 Parks ballfield fencing 5,000$ 5,000$ -$ -$ -$ -$ -$ Parks & Recreation 2020 Parks Begin Park play equipment project 200,000 200,000 - - - - - Parks & Recreation 2020 Park maintenance (courts, equipment painting, benches) 161,000 161,000 - - - - - Parks & Recreation 2020 Parks concrete, trail work 75,000 75,000 - - - - - Parks & Recreation 2020 Cgyms scoreboards 7,000 7,000 - - - - - Parks & Recreation 2021 Parks addition of bocce ball courts 25,000 - 25,000 - - - - Parks & Recreation 2021 Parks concrete, trail work 75,000 - 75,000 - - - - Parks & Recreation 2021 Parks Corner Park play equipment project 185,000 - 185,000 - - - - Parks & Recreation 2021 Parks frisbee golf equipment 12,000 - 12,000 - - - - Parks & Recreation 2021 Parks court, equipment painting, benches 100,000 - 100,000 - - - - Parks & Recreation 2021 Parks lighting improvements 75,000 - 75,000 - - - - Parks & Recreation 2021 Park maintenance (garages) 22,000 - 22,000 - - - - Parks & Recreation 2022 Cgyms pitching machines 5,000 - - 5,000 - - - Parks & Recreation 2022 Parks concrete, trail work 75,000 - - 75,000 - - - Parks & Recreation 2022 Parks Hidden Valley Park play equipment project 250,000 - - 250,000 - - - Parks & Recreation 2022 Parks lighting improvements 100,000 - - 100,000 - - - Parks & Recreation 2022 Parks Civic Center hockey rink 220,000 - - 220,000 - - - Parks & Recreation 2022 Parks maintenance (courts, equipment painting, benches and picnic tables) 35,000 - - 35,000 - - - Parks & Recreation 2023 Parks Lighted Baseball Field 690,000 - - - 690,000 - - Parks & Recreation 2023 Parks concrete, trail work 75,000 - - - 75,000 - - Parks & Recreation 2023 Park Hidden Valley Hockey rink 100,000 - - - 100,000 - - Parks & Recreation 2023 Parks hockey rink fencing 10,000 - - - 10,000 - - Parks & Recreation 2023 Parks Liberty Park play equipment project 200,000 - - - 200,000 - - Parks & Recreation 2023 Parks lighting improvements 75,000 - - - 75,000 - - Parks & Recreation 2023 Parks maintenance 160,000 - - - 160,000 - - Parks & Recreation 2024 Parks concrete, trail work 50,000 - - - - 50,000 - Parks & Recreation 2024 Parks Elm Grove Park play equipment project 150,000 - - - - 150,000 - Parks & Recreation 2024 Parks lighting improvements 75,000 - - - - 75,000 - Parks & Recreation 2024 Parks maintenance 70,000 - - - - 70,000 - Parks & Recreation 2024 Park outdoor fitness equipment 40,000 - - - - 40,000 - Parks & Recreation 2025 Parks concrete, trail work 50,000 - - - - - 50,000 Parks & Recreation 2025 Parks lighting improvements 75,000 - - - - - 75,000 Parks & Recreation 2025 Parks maintenance 120,000 - - - - - 120,000 Parks & Recreation 2025 Parks picnic shelter at Northwood 125,000 - - - - - 125,000 Parks & Recreation 2026 Parks concrete, trail work 50,000 - - - - - - Parks & Recreation 2026 Parks Holiday Park play equipment project 200,000 - - - - - - Parks & Recreation 2026 Parks lighting improvements 75,000 - - - - - - Parks & Recreation 2026 Parks maintenance 65,000 - - - - - -
Little Acre Park
4948 Zealand Avenue North
Existing court
S:\February 8, 2021 City Council Meeting\12.1 Q ‐ Upcoming Events.docx
Request for Action
February 8, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Exchange of communication between members of the city council
Upcoming meetings and events:
Feb. 9 7:30 a.m. – District 281 Government Advisory Council Meeting (Virtual)
6 p.m. – Personnel Board Meeting ‐ Building Official Interviews (In‐person &
Virtual)
7 p.m. – Citizen Advisory Commission Meeting (In‐person & Virtual)
Feb. 10 6:30 p.m. – West Metro Fire‐Rescue District Board Meeting at Station #3,
4251 Xylon Avenue North
Feb. 11 12:30 p.m. – Shingle Creek Watershed Management Commission Meeting (Virtual)
Feb. 15 Presidents’ Day, City Offices Closed
Feb. 16 6:30 p.m. – City Council Work Session (In‐person)
Feb. 17 11:30 a.m. – North Metro Mayors Operating Committee Meeting (Virtual)
Feb. 18 7:30 a.m. – Northwest Cable Television Cable Board/Commission Meeting (Virtual)
8:30 a.m. – Bassett Creek Watershed Management Commission Meeting at
Golden Valley (Virtual)
Feb. 22 7 p.m. – City Council Meeting (In‐person)
Agenda Section
Other Business
Item Number
12.1