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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 nd 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 New Hope EDA September 28, 1998 Page 1 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. nd 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 New Hope EDA September 28, 1998 Page 2 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 Page 3