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