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Ed081098 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes August 10, 1998 Meeting #5 (Meeting held at Northwest Community Television Studio) CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority to order at 8:11 p.m. ROLL CALLPresent: Enck, Cassen, Collier, Norby, Otten Staff Present: Sondrall, Hanson, Donahue, Leone, Henry, French, Clancy APPROVE MINUTESMotion was made by Commissioner Norby, seconded by Commissioner Otten, to approve the EDA minutes of July 27, 1998. All present voted in favor. Motion carried. NEW HOPE President Enck introduced for discussion Item 4, Discussion Regarding Potential GARDEN APTS. Multi-family Rehabilitation Project at New Hope Garden Apartments, 5600-5620 Item 4 Zealand Avenue North and 8511 Bass Lake Road. Mr. Dan Donahue, City Manager, explained that the owners of the New Hope Garden Apartments have approached the City and are interested in the EDA Apartment Loan Program. The property consists of seven buildings with 11 units each. The estimated cost of the project for new windows and siding is $270,720, and the owners are requesting a no interest loan for 50% or$135,360. The EDA discussed the components of the City’s Apartment Loan Program and the use of public funds. MOTION Motion was made by Commissioner Otten, seconded by Commissioner Collier, Item 4 directing staff to meet with the property owner and determine whether the project would qualify for the program. All present voted in favor. Motion carried. CARE BREAK President Enck introduced for discussion Item 5, Resolution Declaring Preliminary Item 5 Intent to Convey Property to Senior Outreach Services, Inc. for Adult Daycare Facility (Improvement Project No. 493). st Mr. Donahue explained that based on the Council’s direction from the June 1 work session, staff has prepared a letter of intent between the City and CareBreak which declares the City’s preliminary intent to proceed with the CareBreak project and convey the property at 5501 Boone Avenue North. The resolution is necessary to allow CareBreak the ability to commence negotiation proceedings with its financial institution. He emphasized that the letter of intent does not commit the City to actually participating in the project. Substantial discussion ensued regarding conveyance of the property, loss of real estate taxes, usage of tax increment funds, payments in lieu of property taxes, contract term, and concept plans. Commissioner Norby expressed her support for the project itself but not for New Hope EDA August 10, 1998 Page 1 donation of the land. Commissioner Collier was reluctant to vote on the resolution without more definitive plans from CareBreak. For the record, Mr. Donahue stated he has been a member of the nonprofit board for the past six years and is willing to step down if the EDA views this as a conflict of interest. Mr. David Perlman, 8708 Hopewood Lane, was recognized. He questioned whether there has been a demonstrated need for adult daycare. President Enck explained that CareBreak is presently in existence and is being forced out of its present location at NorthRidge. MOTION to Motion was made by Commissioner Otten, seconded by Commissioner, Enck, Item 5 amend the resolution requiring the annual payments in lieu of taxes as long as the operation is run by Senior Outreach Services or any other non-profit organization exempt from real estate taxation. Voting in favor: Cassen, Collier, Enck, Otten; Against: Norby. Motion carried. RESOLUTION as amended: Commissioner Otten moved approval of the following resolution EDA 98-08 Item 4 “RESOLUTION DECLARING PRELIMINARY INTENT TO CONVEY PROPERTY TO SENIOR OUTREACH SERVICES, INC. FOR ADULT DAYCARE FACILITY (IMPROVEMENT PROJECT NO. 493)” . 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, Otten; and the following voted against the same: Norby, Collier; 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 Collier, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:45 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA August 10, 1998 Page 2