Ed122898
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes December 28, 1998
Meeting #11 City Hall
CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority to order
at 7:42 p.m.
ROLL CALLPresent: Enck, Cassen, Collier, Norby, Otten
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Henry
APPROVE MINUTESMotion was made by Commissioner Otten, seconded by Commissioner Cassen, to
approve the EDA minutes of December 14, 1998. All present voted in favor.
Motion carried.
IMP. PROJECT 597 President Enck introduced for discussion Item 4, Discussion Regarding
th
Item 4 Development of City-Owned Property at 9200 49 Avenue North (Improvement
Project No. 597).
Mr. Kirk McDonald, Director of Community Development, explained the
negotiations to date between the City and Gary Nordness and representatives of
Contract Hardware, Inc.
Mr. McDonald noted the City anticipated selling the property for $120,000-
$130,000. The City has lowered its asking price to $99,500.
Contract Hardware’s actual need is for a 15,000 square foot building. In order to
satisfy the City’s goal of maximizing the use of the property, they are willing to
build a 26,000 square foot building and lease 11,000 square feet. They have
indicated the mitigation ponding is of no benefit to them. They are only willing to
purchase 1.85 acres. If the City pays for soil correction, Contract Hardware is
agreeable to paying $2.30 per square foot or $185,347 for the property. They
indicate that the benefits to the City would include full purchase price, ability to
correct soils in conjunction with the pond, maximize the property’s buildable area,
increase employment, and increase the tax base.
Mr. McDonald stated the City Manager’s recommendation is to lower the asking
price by another $10,000.
Discussion ensued regarding the topography of the property, timing of the
development, and possible cost savings if the City undertook the soil corrections
and ponding improvements together.
Mr. Donahue requested the opportunity to further review the proposal and explore
the implications if the City makes the soil corrections.
Mr. Mark Hanson, City Engineer, indicated the City could submit a plan to the
DNR regarding the wetland.
MOTION to
Motion was made by Commissioner Otten, seconded by Commissioner Collier,
Item 4
postpone action regarding the proposal until January 11, 1999.
All present
New Hope EDA December 28, 1998
Page 1
voted in favor. Motion carried.
IMP. PROJECT 493 President Enck introduced for discussion Item 5, Resolution Calling for a Public
Item 5 Hearing to Convey Property at 5501 Boone Avenue North to Senior Outreach
Services, Inc. (CareBreak) and Authorizing Preparation of Development Contract
(Improvement Project No. 493).
President Enck reminded the EDA that the item before them concerns CareBreak
which is an entity separate from North Ridge Care Center.
Mr. Donahue, City Manager, stated the resolution will establish the public hearing
on January 25. He stated the EDA will also review a development agreement at the
January 25 meeting.
President Enck questioned the feasibility of the development as CareBreak’s recent
findings are that the soils are in worse condition than originally anticipated. He
cautioned against conveying the property unless the City is guaranteed completion
of the development.
Mr. Donahue reported that the public hearing can take place and the actual
conveyance can occur at a later date. He stated a draft development agreement will
be available in approximately two weeks. President Enck requested that staff
disseminate copies of the draft development agreement to EDA members as soon as
possible.
Commissioner Cassen requested the sixth paragraph of the resolution be amended
to state 1.93 acres.
RESOLUTION Commissioner Cassen introduced the following resolution (as amended) and moved
EDA 98-14 “RESOLUTION CALLING FOR A PUBLIC HEARING TO
its adoption:
Item 5
CONVEY PROPERTY AT 5501 BOONE AVENUE NORTH TO SENIOR
OUTREACH SERVICES, INC. (CAREBREAK) AND AUTHORIZING
PREPARATION OF DEVELOPMENT CONTRACT (IMPROVEMENT
PROJECT NO. 493)”.
The motion for the adoption of the foregoing resolution
was seconded by Commissioner Otten, and upon vote being taken thereon, the
following voted in favor thereof; Enck, Cassen, Collier, Norby, Otten; and the
following voted against the same: None; Abstained: None; Absent: None;
whereupon the resolution was declared duly passed and adopted, signed by the
president which was attested to by the executive director.
IMP. PROJECT 614 Mayor Enck introduced for discussion Item 6, Resolution Approving the
Item 6 Metropolitan Council’s Memorandum of Understanding to Establish and
Administer a Waiting List and Grievance Procedure for MHOP Units in the Bass
Lake Townhome Project (Improvement Project No. 614).
Mr. Donahue explained that the Metropolitan Council requires the City to utilize
procedures established by the Met Council regarding a waiting list and grievance
procedure. The City currently uses these procedures for the Section 8 Housing
Program.
President Enck pointed out that number 8 on page 4 of the Memorandum of
Understanding states “the City and EDA shall share equally with the Met Council
any costs or expenses…incurred as a result of any claims”. He questioned whether
the City would be required to pay half of expenses if a grievance was filed against
New Hope EDA December 28, 1998
Page 2
the Met Council.
City Attorney Steve Sondrall affirmed that the City would be liable for sharing the
costs as stipulated in the Memorandum of Understanding.
Discussion ensued regarding the City’s liability relative to potential claims and
awards. Mr. Sondrall stated the City would likely be covered through the LMCIT.
Mr. Donahue indicated he would consult the Finance Director to determine
whether this type of contract is similar to other contracts entered by the City.
RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption:
EDA 98-15 “RESOLUTION APPROVING THE METROPOLITAN COUNCIL’S
Item 6 MEMORANDUM OF UNDERSTANDING TO ESTABLISH AND
ADMINISTER A WAITING LIST AND GRIEVANCE PROCEDURE FOR
MHOP UNITS IN THE BASS LAKE TOWNHOME PROJECT
(IMPROVEMENT PROJECT NO. 614)”.
The motion for the adoption of the
foregoing resolution was seconded by Commissioner Cassen, and upon vote being
taken thereon, the following voted in favor thereof; Enck, Cassen, Collier, Norby,
Otten; and the following voted against the same: None; Abstained: None; Absent:
None; whereupon the resolution was declared duly passed and adopted, signed by
the president which was attested to by the executive director.
IMP. PROJECT 614 President Enck introduced for discussion Item 7, Resolution Approving Bass Lake
Item 7 Townhome Housing Development Agreement and Regulatory and Operating
Agreement and Authorizing the President and Executive Director to Sign Said
Agreements (Improvement Project No. 614).
Mr. Donahue stated this item is a reaffirmation of the agreements previously
approved by the EDA.
RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption:
EDA 98-16 “RESOLUTION APPROVING BASS LAKE TOWNHOME HOUSING
DEVELOPMENT AGREEMENT AND REGULATORY AND OPERATING
AGREEMENT AND AUTHORIZING THE PRESIDENT AND EXECUTIVE
DIRECTOR TO SIGN SAID AGREEMENTS (IMPROVEMENT PROJECT
NO. 614)”.
The motion for the adoption of the foregoing resolution was seconded
by Commissioner Cassen, and upon vote being taken thereon, the following voted
in favor thereof; Enck, Cassen, Collier, Norby, Otten; and the following voted
against the same: None; Abstained: None; Absent: None; whereupon the resolution
was declared duly passed and adopted, signed by the president which was attested
to by the executive director.
ADJOURNMENT Motion was made by Commissioner Otten, seconded by Commissioner Cassen, to
adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at
8:31 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA December 28, 1998
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