Ed092898
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes September 28, 1998
Meeting #7 City Hall
CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority to order
at 8:56 p.m.
ROLL CALLPresent: Enck, Cassen, Collier, Norby, Otten
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Henry
APPROVE MINUTESMotion was made by Commissioner Collier, seconded by Commissioner Cassen, to
approve the EDA minutes of August 24, 1998. Voting in favor: Enck, Cassen,
Collier, Norby; Abstained: Otten; Absent: None. Motion carried.
IMP. PROJECT 614 President Enck introduced for discussion Item 4, Resolution Authorizing Funding
Item 4 for Acquisition of Property Located at 7332 Bass Lake Road by Project for Pride in
Living, Inc. for Bass Lake Townhomes Project (Improvement Project No. 614).
Mr. Kirk McDonald, Director of Community Development explained that approval
of the resolution simply advances PPL $235,000 to utilize for acquisition and
demolition of the building at 7332 Bass Lake Road. The payment will be
considered part of the EDA’s funding commitment under the Redevelopment
Contract.
RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption:
EDA 98-10 “RESOLUTION AUTHORIZING FUNDING FOR ACQUISITION OF
Item 4 PROPERTY LOCATED AT 7332 BASS LAKE ROAD BY PROJECT FOR
PRIDE IN LIVING, INC. FOR BASS LAKE TOWNHOMES PROJECT
(IMPROVEMENT PROJECT NO. 614)”.
The motion for the adoption of the
foregoing resolution was seconded by Commissioner Norby, and upon vote being
taken thereon, the following voted in favor thereof; Enck, Cassen, Collier, Otten,
Norby; 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.
AUTOHAUS President Enck introduced for discussion Item 5, Discussion Regarding Release of
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IMP. PROJECT 467 Security on Mortgage for Property Located at 7709 42 Avenue North
Item 5 (Improvement Project No. 467).
Mr. McDonald stated in 1991 the City entered into a development contract with the
owner of the Autohaus property. The City has held security on the mortgage of the
property as a guarantee that all improvements would be completed and the loan
would be repaid. The loan has been repaid but there are several outstanding site
improvements issues including landscaping, screening of trash enclosure, parking
lot striping (ADA requirements), sign post on northeast corner of property, and
retaining wall location. Mr. McDonald pointed out that Autohaus repaid the loan
early and Color Lab, a former tenant of the building, has since relocated. He stated
the owner of the property desires to make additional improvements to the building
and site; however, in order to receive financing for the improvements, he would
like the City to release the mortgage. While staff is supportive of additional
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improvements to the property, the City must ensure that conditions of the 1991
development contract will be met.
Mr. McDonald illustrated the revised site plan recently submitted by Tom
Boettcher, owner of the Autohaus property.
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Mr. Boettcher, owner of 7709 42 Avenue North was recognized. He reviewed the
outstanding issues as follows:
Item: Status:
Landscaping between Made minor improvements in summer of 1998;
Country Kitchen and petitioner is requesting acceptance of
Autohaus landscaping “as is”.
Screening of trash enclosure Has contracted with a fence company to repair
fence and install slats.
Parking lot striping/lack of Intends to resurface and re-stripe parking lot
handicapped parking spaces after building improvements in 1998
Sign post on NE corner of Sign post has been removed.
property
Retaining wall setback Requesting acceptance in present location.
Mr. Boettcher explained the proposed improvements to the building’s exterior.
President Enck inquired of the assurance that the improvements from the prior
project will be completed to the City’s satisfaction.
Mr. Boettcher apologized that the issues were not taken care of sooner but assured
the EDA that all issues will be resolved. He commented that due to the lease with
Color Lab, he had no choice in the location of the retaining wall. Also, he advised
the EDA that he recently learned of a trail/track located 20 feet in the rear of the
Autohaus property which was installed by the YMCA without his permission. He
stated he has reached an agreement with the Y and will permit the track to remain
in its present location, the track will be maintained by the Y, and ownership of the
property remains with Mr. Boettcher.
Commissioner Cassen reported that she inspected the Autohaus property today and
noticed the property is unkempt with weeds around the building’s foundation and a
box containing windshields in plain view of Country Kitchen.
Mr. Boettcher assured the EDA that the windshields and parts will be contained in
the new screened area. He stated the weeds will be eliminated with the building’s
exterior improvements and parking lot resurfacing. He commented that depending
on the weather, the sealcoating/striping of the parking lot may take place this week.
Also, his agreement with the renters will include a requirement that the building
and landscaping are adequately maintained.
Mr. McDonald requested the opportunity for staff to provide input on the parking
lot striping plan.
Additional discussion centered around the outstanding issues on the property and
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whether the EDA should release the mortgage without any substitute financial
guarantee.
Mr. Boettcher reiterated his verbal commitment to fulfill all performance issues
relative to the development contract. He also noted that the renter has spent over
$400,000 on recent improvements to the building’s interior.
The City Attorney noted the cost of the outstanding improvements is relatively
small; however, the development agreement and addendum dated June of 1993
remains enforceable until June of 1999.
MOTION to
Motion was made by Commissioner Otten, seconded by Commissioner, Collier,
release security on the mortgage subject to staff’s approval of final plans for
the parking lot striping, landscaping, and screening.
All present voted in favor.
Motion carried.
ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner Otten, to
adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at
9:40 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA September 28, 1998
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