Ed041000
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes April 10, 2000
Regular Meeting City Hall
CALL TO ORDERPresident Enck called the meeting of the Economic Development Authority to
order at 7:31 p.m.
ROLL CALLPresent: W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Pat LaVine Norby, Commissioner
Mark Thompson, Commissioner
APPROVE MINUTES to
Motion was made by Commissioner Norby, seconded by Commissioner Cassen,
approve the Regular Meeting Minutes of March 27, 2000
. All present voted in
favor. Motion carried.
POTENTIAL APT. President Enck introduced for discussion Item 4, Discussion Regarding Request for
REHABILITATION Financial Assistance for Potential Apartment Rehabilitation Project at 4110 and
st
PROJECT 4120 Nevada Avenue North and 7200 41 Avenue North.
Item 4
Mr. Kirk McDonald, Director of Community Development, indicated the owner of
the three 12-unit apartment buildings, located west of New Hope Bowl and south of
the Mobil Station, is requesting consideration of financial assistance to make
improvements to the buildings utilizing the City’s Apartment Rehabilitation Loan
Program.
Mr. McDonald stated the buildings were constructed in 1962 and have an
estimated market value of $299,000 each. He briefly reviewed the loan program.
The items proposed by the owner for repair include: siding, window trim,
soffit/fascia work, and garage roof.
President Enck reported that he inspected the area and had an opportunity to
converse with the apartment manager. He recommended expanding the scope of
the project and noted a number of potential improvements in addition to those
proposed by the owner. President Enck provided staff with a list of items to be
considered in a potential project.
Commissioner Collier noted that such a project may require greater than $100,000
in financial assistance. The EDA was generally supportive of a loan in excess of
$100,000 if additional improvements were included in the project. The EDA
expressed preference to a thorough, aesthetically-pleasing, renovation project.
Commissioner Norby advised against a “no interest” loan. Mr. McDonald
confirmed that the financial arrangements of the program call for a “low interest”
loan.
Commissioner Cassen asked if there are guidelines in place to prohibit the owner
New Hope EDA April 10, 2000
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from imposing substantial rent increases after completion of the improvements.
Mr. McDonald and the City Attorney reported regarding the last similar project at
which time the rent increases were restricted to the consumer price index. Mr.
McDonald indicated he would report back after researching this issue further.
Mr. McDonald stated if the EDA is supportive of pursuing the request, staff
recommends authorizing staff to meet with the property owner to discuss the
project in detail. Following this meeting, a financial analysis would be prepared to
determine the ability to repay the loan.
The EDA unanimously directed staff to meet with the property owner to discuss a
potential project.
ADJOURNMENT to
Motion was made by Commissioner Norby, seconded by Commissioner Collier,
adjourn the meeting
. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 7:40 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA April 10, 2000
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