02 08 21 City Council MinutesNew Hope City Council February 8, 2021
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes February 8, 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.
PLEDGE OF
ALLEGIANCE
The City Council and all present stood for the Pledge of Allegiance.
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
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Valerie Leone, City Clerk
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Motion was made by Council Member Hoffe, seconded by Council Member Elder,
to approve the regular meeting minutes of January 25, 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:
ISD 281 Update
Ms. Stephanie Burrage, Interim Superintendent of ISD 281, thanked the city for the
collaboration during the pandemic. She provided a brief update on remote and in‐
person classrooms and the search process for the superintendent position.
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 February 8, 2021.
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RESOLUTION 2021‐19
Item 6.4
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.
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.
PUBLIC HEARING
BONDS
Item 7.1
Mayor Hemken introduced for discussion Item 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.
Mr. Kirk McDonald, city manager, stated Ehlers and AEM have been assisting the
city on the potential refinancing of the Ice Arena Energy Conservation Bonds that
were issued in 2011 to save on interest costs.
He explained 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.
Mr. McDonald stated 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” 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. He noted the process and type of bonds are the same as those
utilized for the pool/park improvement project.
Mr. McDonald stated 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. He also stated the city’s most recent bond issues were rated
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“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.
Mr. Jason Aarsvold of Ehlers was introduced. Mr. Aarsvold stated the refinancing
requires a Tax Abatement Hearing and a TEFRA (Tax Equity and Fiscal
Responsibility Hearing) and both are being held as one public hearing. He stated
the hearing allows any interested party to present their comments to the Council.
Council Member London noted the amount saved in escrow was earning interest.
He inquired whether the future interest earnings were accounted for in the
analysis or if the savings for refinancing is actually less than projected.
Mr. Aarsvold stated the principal payments were held in escrow and will be used
to pay down the bond debt. He stated the interest earnings will be returned to the
city. He commented the lower interest rate achieved through the refinancing will
result in an overall lower debt obligation.
Mayor Hemken opened the floor for comments. There was no one present in the
audience desirous of addressing the Council for the hearing.
CLOSE HEARING
Item 7.1
Motion was made by Council Member Elder, seconded by Council Member Hoffe,
to close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2021‐20
Item 7.1
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION RELATING TO A TAX ABATEMENT, TEFRA
HEARING, AND GENERAL OBLIGATION TAX ABATEMENT BONDS;
GRANTING THE ABATEMENT AND APPROVING THE ISSUANCE OF THE
BONDS.” 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; and the following voted against
the same: London; 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.
2021 CDBG PROGRAM
Item 7.2
Mayor Hemken introduced for discussion Item 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.
Mr. Jeff Sargent, director of community development, explained the purpose of the
public hearing is to consider the projected use of CDBG program funds. He stated
the city is projected to receive $107,000 in 2021 of which 15% (or $16,050) will be
pooled into a fund at Hennepin County for Public Service Activities. Public service
agencies will apply for the funding directly through Hennepin County. He stated
the remaining 85% ($90,950) may be used for qualified neighborhood revitalization
activities. He explained last year the city combined the 2020 CDBG funds with
remaining 2019 CDBG funds and allocated $76,250 towards a Habitat for
Humanity project, and $76,250 towards the single‐family housing rehabilitation
program. He stated this year the city does not have another low‐income housing
project to consider. Mr. Sargent also pointed out that allocating funds towards the
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scattered site housing program is no longer supported by Hennepin County. He
recommended allocating the full CDBG amount to the single‐family housing
rehabilitation loan program. He stated there are seven families currently
participating in the loan program and 12 other families have expressed interest in
obtaining a loan. He noted the 2021 allocation of approximately $90,000 will
provide four to five loans.
Council Member London inquired if the program is income‐based.
Mr. Sargent indicated there are various loan programs and participants must meet
the income‐qualified criteria.
Mayor Hemken opened the public hearing for comments. There was no one
present to address the Council for the public hearing.
CLOSE HEARING
Item 7.2
Motion was made by Council Member Elder, seconded by Council Member
London, to close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2021‐21
Item 7.2
Council Member London introduced the following resolution and moved its
adoption: “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.” 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.
LITTLE ACRE PARK
BASKETBALL COURT
REPLACEMENT
(IMPROVEMENT
PROJECT NO. 1059)
Item 8.1
Mayor Hemken introduced for discussion Item 8.1, Motion to authorize
preparation of plans and specifications for basketball court replacement at Little
Acre Park (improvement project no. 1059).
Mr. Dan Boyum, city engineer, stated Little Acre Park is located at 4948 Zealand
Avenue North. He stated the basketball court is located on the east side of the park
near Yukon Avenue North. He stated the court is over 30 years old and requires
replacement. He illustrated photographs of the court’s condition. Mr. Boyum
stated the proposed improvements include replacement of the basketball court and
hoops. He recommended that bids be solicited for the work in conjunction with
the playground improvements proposed at Corner Park. He stated the preliminary
cost estimate is $80,000 and funding for the court replacement would be through
the Park Infrastructure Fund. He stated the construction could begin in spring and
be completed by summer, 2021.
Council Member London inquired of the estimate. Mr. Boyum stated court work
and special paint can be costly. He offered to share the itemized cost of the recent
Northwood Park court project. Ms. Susan Rader, director of parks and recreation,
noted hoops and footings range between $10,000 to $12,000 each. Mr. Boyum also
noted the estimate includes indirect costs.
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Council Member London thanked staff for the explanation.
.
MOTION
Item 8.1
Motion was made by Elder, seconded by Council Member Hoffe, to authorize
preparation of plans and specifications for basketball court replacement at Little
Acre Park (improvement project no. 1059). Voted in favor thereof: Hemken, Elder,
Hoffe, Isenberg, London; and the following voted against the same: None;
Abstained: None; Absent: None. Motion carried.
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.
Motion was made by Council Member Isenberg, seconded by Council Member
Elder, to appoint Heather Koshiol to the Planning Commission, appoint Jill
Kaufman and Carrie Neuburger to the Citizen Advisory Commission, and
appoint Allison Isenberg to the Human Rights Commission. All present voted
in favor. Motion carried.
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Hoffe, 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 7:43 p.m.
Respectfully submitted,
Valerie Leone, City Clerk