Economic Development Report 2021ECONOMIC DEVELOPMENT REPORT
CITY OF NEW HOPE, MINNESOTA
SEPTEMBER 1, 2021
The New Hope Economic Development Report highlights redevelopment projects throughout
the city from the previous year and the tools that are in place to promote development activity.
The city’s Economic Development Authority promotes and facilitates business development and
housing redevelopment activities.
OVERVIEW & HISTORY
CITY OF NEW HOPE OVERVIEW & HISTORY
LOCATION
The city of New Hope is a suburb located northwest
of Minneapolis with strong neighborhoods, an
abundance of parks and recreational opportunities,
excellent schools, and great shopping nearby. The
city has easy access to the entire Twin Cities area
with major arterials of Highway 169, Highway 100,
Interstate 694, and Interstate 394 all nearby.
POPULATION (2020 CENSUS)SIZE/AREA YEAR FORMED
21,986 5.1 square miles 1953
BUSINESSES JOBS SHOPPING CENTERS
480 11,080 5
SCHOOL DISTRICT SCHOOLS PARKS/ACREAGE
Robbinsdale Area (281)5 18/200
HISTORY
In the early 1900s, New Hope was a farming-rich
community. The area was settled as part of Crystal
Lake Township and became the home for many
family farms. As housing developments spread west
from Minneapolis in the 1930s, the residents of Crystal Lake Township began the movement to
incorporate the township. In 1936, the city of Crystal was incorporated. Forming a city, though,
was not supported by all residents in the township. The rural residents in the western half of
the township broke away from the city of Crystal and formed their own township. The resistant
residents, mostly farmers, were unhappy about paying taxes for projects such as street lighting
and sanitary sewer. The name the farmers selected for their new township was a reflection of
the time, New Hope.
Many residents along the New Hope-Crystal border formed groups and requested to be
annexed by Crystal in order to receive what were the most modern city services at the time.
Others, however, were happy to be part of New Hope township and remained separate from
Crystal. Therefore, pockets of New Hope residents were created along the eastern boundary.
By the early 1950s, the rapidly developing township of New Hope chose the fate it had eluded
just over 15 years earlier. In 1953, New Hope incorporated as a city to prevent losing more of
its land and residents to Crystal via annexation. This move was again opposed by the farming
community of New Hope, but housing developments between 1936 and 1953 had made farmers
a minority in New Hope.
When the township was incorporated, it had 600 residents. The city grew rapidly and was home
to over 2,500 people by 1958. This rapid population growth continued through the 1960s, and by
1971, there were 24,000 residents in New Hope. The population of the community has declined
slightly since 1971.
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SUMMARY OF ACTIVITY
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
The city of New Hope’s Economic Development Authority (EDA) promotes and facilitates business
development activities. It considers proposals on a case-by-case basis and utilizes a broad base of public
financing options. Membership of the EDA is identical to that of the New Hope City Council. Council members
are appointed to the commission for terms concurrent with the City Council terms and the mayor acts as
president of the authority. The city manager serves as the executive director. The city employs various
resources to help businesses grow and reach their goals.
BUSINESSES & ASSISTANCE PROGRAMS
Local commercial and industrial businesses are extremely important to the city. The City Council has
undertaken programs and initiatives to address both commercial and industrial properties. These programs
focus on:
• Retaining existing businesses.
• Assisting with expansions.
• Attracting new businesses to vacant available buildings.
• Attracting new construction to a limited number of available vacant sites.
• Improving communication with businesses and responding more effectively to business concerns and
inquiries.
BUSINESS SUBSIDY PROGRAM
The city’s business subsidy program addresses policies related to the use of Tax Increment Financing (TIF),
tax abatement, and other business assistance programs for private development. It serves as a guide
in reviewing applications requesting business assistance. All projects must meet mandatory minimum
approval criteria and the level of assistance is evaluated on a case-by-case basis. Assistance can cover
project costs as allowed for under Minnesota Statutes. The EDA considers using a business assistance tool
to assist private developments in circumstances in which the proposed private project meets one of the
following uses:
• Provides a diversity of housing not currently provided by the private market.
• Provides a variety of housing ownership alternatives and housing choices.
• Promotes affordable housing for low- or moderate-income individuals.
• Promotes neighborhood stabilization and revitalization by the removal of blight and the upgrading in
existing housing stock in residential areas.
• Removes blight and encourages redevelopment in the commercial and industrial areas of the city
in order to encourage high levels of property maintenance and private reinvestment in those areas;
including façade improvement.
• Increases the tax base of the city to ensure the long-term ability of the city to provide adequate services
for its residents, while lessening the reliance on residential property tax.
• Retains local jobs, increases the local job base, and provides diversity in that job base.
• Increases the local business and industrial market potential of the city.
• Encourages additional unsubsidized private development in the area, either directly or through
secondary “spinoff” development.
• Offsets increased costs of redevelopment over and above the costs that a developer would incur in
normal development.
• Accelerates the development process and achieves development on sites that would not be developed
without this assistance.
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CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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LOAN PROGRAMS
The city has partnered with the lending center at the Center for
Energy and Environment (CEE) to offer a convenient one-stop service
that provides commercial and non-profit property owners in New Hope
access to a comprehensive array of financing and rehabilitation services.
The CEE Loan Program provides financing to New Hope businesses making cost-effective, energy efficiency
improvements. Nonprofit organizations that are interested in reducing their energy costs are eligible to
apply for funds through the CEE to help finance energy-efficient projects implemented in properties owned
and/or occupied by nonprofit entities.
OUTSTANDING BUSINESS AWARD PROGRAM
The city’s Outstanding Business Award Program was initiated in 2006 to recognize contributions by
businesses to the local community. The purpose of the award program is to recognize businesses for
noteworthy accomplishments such as expanding or improving a building or property, creating new jobs for
New Hope residents, reaching a milestone year in business, or providing outstanding community service.
Nominations are accepted quarterly for the award.
BUSINESS NETWORKING GROUP
The New Hope Business Networking Group was started by New Hope business owners in 2010 to create an
open forum for networking within the city. The group is open and free to all New Hope business owners.
The Business Networking Group meets regularly at one of the participating businesses. The city is also a
long-time member of the TwinWest Chamber of Commerce.
OPEN TO BUSINESS
Open to Business is a partnership between New Hope and the
Metropolitan Consortium of Community Developers (MCCD), an
association of nonprofit community development organizations
serving the Twin Cities. With the help of a matching grant from
Hennepin County, the city works with MCCD to provide business
consultation services and financial advice to small local business
owners and aspiring business owners. The program offers help in
several areas, including:
• Business plan assistance
• Financial management
• Bookkeeping set-up and training
• Loan packaging
• Real estate analysis
• Marketing assistance
• Strategic planning
• Professional referrals
Entrepreneurs can meet with a business advisor one-on-one over Zoom or in person by scheduling an
appointment. Open to Business facilitated one direct loan of $12,035 in 2016, and two direct loans of
$100,000 and $25,000 leveraging over $1,000,000 in outside capital in 2017. In 2018, one loan was facilitated
and approved through the program. Open to Business provided services for three new businesses and
one existing business in 2019. To prevent defaults and abandoned commercial spaces in 2020, multiple
municipalities received emergency CARE Act funds from the U.S. Treasury. Open to Business helped
DEED and Hennepin County design a one-time forgivable loan program for businesses that were forced
to close and did all of the underwriting and disbursements. During this time, Open to Business advisors
also continued to provide technical assistance and advisory services for over 50 metro area communities,
helping four New Hope businesses navigate funding resources.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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EMPLOYMENT
There are approximately 480 commercial/industrial/service businesses in the city, 31 of which opened in
2020. These businesses account for approximately 10,360 jobs in the city. The city’s 15 largest employers,
which are listed below, account for nearly 4,900 of those jobs.
MAJOR EMPLOYERS
Employer Products/Services New Hope-Based Employees
(Total Employees)
Independent School District 281 Education 791 (1,852)
Hy-Vee Grocery & convenience store 632
Minnesota Masonic Home/
North Ridge Care Center Skilled nursing care facility 560
St. Therese Home of New Hope Skilled nursing care facility 544 (1,117)
Horwitz Mechanical contractor 345
Padagis Pharmaceutical and medicine
manufacturing 323
Intermediate District 287 Education 266 (943)
City of New Hope Government agency 262 including seasonal staff
YMCA Health club 228
Liberty Diversified International Stationery supplies 200
Parker - Hannifin Oildyne Division Hydraulic component production 172
Dakota Growers Pasta Company Macaroni & spaghetti 159
Waymouth Farms, Inc.Salted & roasted nuts & seeds 150
Good Samaritan Society Skilled nursing care facility 136
Avtec Warehousing & metal finishing 102
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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PLANNING & DEVELOPMENT
The city continues to see sustained growth and development as major redevelopment projects come to
fruition. Overall development activity has increased steadily in recent years and the city anticipates that
growth will continue over the next several years.
DEVELOPMENT ACTIVITY
From 2016-2020, $222,710,120 of reinvestment was approved in the city through construction permits. The
city is striving to increase momentum to continually increase the tax base, while providing the highest level
of services to residents, businesses, and property owners. Building permits for the construction of a new
city center aquatic center and community theater were issued in 2019, accounting for nearly $18 million
of the $38 million in work for the year. The large increase in valuation of work in 2017 can be attributed to
IronWood, a 182-unit luxury apartment project valued at $43 million.
DEVELOPMENT ACTIVITY BY YEAR
2016 2017 2018 2019 2020
Permits issued 2,607 2,652 2,441 2,459 2,536
Fees collected $602,391 $867,289 $506,883 $452,267 $513,900
Valuation of work $37,740,765 $71,895,249 $46,952,876 $38,288,981 $27,832,249
VALUATION OF WORK
2016 2017 2018 2019 2020
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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The following planning and development activities occurred in the last year:
Windsor Ridge
SVK is constructing 32 new single-family homes on an 8.7-acre undeveloped site that was owned by the
city for many years. In the fall of 2018, the city received six proposals from four developers for the site.
After careful consideration, SVK was selected as the preferred developer for the site. SVK is in the process
of building the homes on 65-foot wide lots. The estimated sale prices for the homes ranged from the mid-
$300,000’s to the low $400,000’s. At the end of 2020, 11 homes had sold for an average price of $407,000.
All were either under construction or completed as of the summer of 2021 and it is anticipated that all
homes will be completed and sold by the end of 2021. The city of Crystal is also developed another three
lots just east of project.
CITY OF
CRYSTAL
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Police Department & City Hall
A new police department and city hall for
the city of New Hope was completed in
2019. The City Council approved a bid from
Terra General Contractors for $14.78
million in December of 2017 for the new
building. The sale of $18.435 in general
obligation capital improvement plan bonds
at the interest rate of 2.6339% was also
approved to pay for project.
The city began working with a consultant in
2013 to review the space needs of the
police department and city hall, identify
deficiencies of the existing building, and
determine if an updated and expanded or
new police station and city hall facility was
needed. In September 2015, a space
needs citizen’s task force recommended that a new police station and city hall be constructed to replace
the existing facility. The task force evaluated several potential sites for the building and considered soil
boring information. In September 2016, the task force recommended that the new municipal building be
constructed on the civic center site where the existing swimming pool is located, due to the fact that the
pool also needed to be replaced. In January 2017, the city entered into a five-phase contract for design and
construction services with Wold Architects and Engineers for the new police station and city hall. In August
2017, the City Council approved design development phase plans and authorized Wold to proceed to the
next phase of the design process – the preparation of construction documents. A groundbreaking for the
building took place on January 5, 2018, and the building was substantially completed in July 2019.
The new 66,000-square foot building provides much needed space for the police department and addresses
many deficiencies of the previous city hall. It has more than twice the square footage of the previous building,
most of which is in the police station/garage and public areas in city hall. It also resolved deficiencies of
the previous building, such as a leaky roof, an HVAC system in poor condition, an inadequate electrical
system, and exterior maintenance issues. The new police station includes a larger lobby with adequate
seating and two adjacent interview rooms to provide privacy for victims, as well as a secure location to
talk with suspects. It includes improved facilities for officers such as a larger roll call room equipped with
technology, individual workstations, and ample locker room facilities. There are larger, more secure areas
for the storage of evidence and records, and a 31-stall underground heated garage large enough to store
all police squads. The new city hall provides additional public space, including two large meeting rooms
equipped with technology and designed to adapt to a variety of uses, and two small conference rooms
between three staff counters. The council chambers has been specifically designed to televise meetings
and accommodate overflow crowds.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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New Hope Aquatic Center
Plans for a new outdoor aquatic facility and
other improvements within Civic Center
Park started in early 2017. Construction on
the complex started in April of 2018. The
approximate cost of the project was $19.5
million. For the pool part of the project, the
city received a grant from the state for $2
million, a Hennepin Youth Sports Facility
Grant for $250,000, and a Minnesota
Swimmers Grant for $40,000. The new pool
facility includes a bathhouse with
concession stand, a 50-meter, eight-lane
pool, diving boards, drop slide and floatable
water obstacle course, a current channel,
vortex pool, two body slides, shallow water
area with zero depth entry and play feature,
water walk area, and shade structures. The
bather load for the new facility is 1,233 people and the pools hold a total of more than 700,000 gallons of
water. A June 2020 opening was planned, but postponed until June 20 due to COVID-19. Other improvements
within Civic Center Park include a new outdoor performance center with terraced seating, a picnic pavilion,
skate park, trails, trail lighting, and an additional parking lot.
Pocket Square Cocktail Lounge
A. Davis Distillery was granted a conditional use permit in January 2020 to open a microdistillery and
cocktail room at 7530 Quebec Avenue North. When Pocket Square Cocktail Lounge opened in April of
2021, it became one of the first cocktail rooms in the northwest suburbs. The microdistillery serves hand-
crafted cocktails and small 750 ml bottles
of handmade liquor. It serves primarily
vodka, gin, and rum, all of which are
produced on-site. While food is not served
at the facility, customers are encouraged
to order from local restaurants and food
trucks often operate in the parking lot.
The microdistillery is open on Thursday-
Saturday with the option of renting out the
space for special events on Sunday.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Twin City Garage Door
Twin City Garage Door completed a $500,000
remodel and expansion of their office and
showroom at 5601 Boone Avenue North. The
colorful, innovative design showcases Twin City
Garage Door’s products and includes working
examples throughout the project showroom. The
full-service garage door company has three
locations in the Twin Cities. They provide overhead
garage door installation and repair services, as well
as garage door opener and electrical control device
services for commercial, industrial, and residential
properties.
Furniture Industries
Plans were approved for Furniture Industries, Inc.
to expand their building at 3101 Louisiana Avenue
North in June of 2020. The 15,000-square foot
expansion was intended to provide additional
warehouse space for the growing business. It
required approval of a conditional use permit and
two variances. The project was delayed after the
business determined that the site and proposed
expansion would not meet the growing needs of
their operations in the future.
ORIJIN STONE
ORIJIN STONE, a direct-to-trade natural stone
wholesaler, relocated their operations and staff of
28 employees to New Hope in October of 2020. The
business is known for its innovation in the stone
industry, premium quality, and exclusive natural
stone products from around the world. After
purchasing the vacant 110,000-square foot building
at 5100 Boone Avenue North in February of 2020,
ORIJIN STONE constructed a state-of-the-art custom
fabrication facility for natural stone. The renovated
space includes a new showroom, remodeled office
space, and a reconfigured warehouse. Interior
improvements to the building included new skylights
and roofing, mechanical and heating systems,
plumbing and bathrooms, breakrooms, overhead
doors, cranes, windows and doors, concrete
flooring, and significant repairs to the building.
Exterior upgrades included the construction of a
new 32-stall parking lot, new lighting and fencing,
structural repairs, and painting of the building. The
family run business started in 2011 and the new
location will allow for continued growth and
expansion.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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HOUSING
LOAN PROGRAMS
Loans and financing for home improvement projects are available to residents of New Hope through the
Center for Energy and Environment and Hennepin County.
Center for Energy and Environment
The city has partnered with the lending center at the Center for Energy and Environment (CEE) to offer
a convenient one-stop service that provides residential property owners in New Hope access to a
comprehensive array of financing and rehabilitation services. The Low Interest Loan Program provides
loans and funds to homeowners to make improvements to their properties. An Emergency Deferred Loan
is also available for homeowners that have emergency improvement needs but do not qualify for other
home improvement loan or grant programs. The program is funded with Economic Development Authority
(EDA) funds. The following loans/subsidies/leveraged funds have been issued to New Hope residents
through CEE since 2016:
2016 2017 2018 2019 2020
Loans/Subsidies/
Leveraged Funds 5 9 4 4 5
Amount $46,096 $78,682 $71,438 $68,091 $71,822
Hennepin County
Hennepin County’s Home Rehab Program enables income-qualified residents to request loans that address
basic safety, maintenance, and health concerns, as well as home improvements. Loans up to $30,000 at
0% interest are available to residents of New Hope. No monthly payments are required and the loans may
be forgiven after 15 years if residents continue to live in and own their home. The program is funded with
Community Development Block Grant (CDBG) funds allocated to Hennepin County through the Department
of Housing and Urban Development. The following loans have been issued to New Hope residents through
Hennepin County since 2016:
2016 2017 2018 2019 2020
Loans 1 1 1 1 1
Amount $30,000 $6,840 $12,600 $28,965 $30,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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SCATTERED SITE HOUSING
Over the years, the city has utilized its Economic Development Authority (EDA) to acquire several properties
as part of the Scattered Site Housing Program. The primary focus of the program is to target distressed
single-family properties throughout the city, with the goal of improving residential neighborhoods. The
program currently emphasizes two primary activities: demolition and rehabilitation. When homes are
demolished, the vacant lot is sold to a builder for the construction of a new single-family home. Homes
that are rehabilitated are sold on the open market with no income restrictions. The following scattered site
housing projects were completed and sold over the last year:
Address Previously
Assessed Value Sale Price Percent
Increase Project Type
3924 Utah Ave N $202,000 $375,000 86%Rehabilitation
5201 Oregon Ave N $163,000 $408,320 151%Demolition &
rebuild
5355 Oregon Ave N $75,000 $389,921 420%Demolition, lot
split & rebuild
6027 West Broadway $115,000 $350,000 204%Demolition &
rebuild
SCATTERED SITE HOUSING PROJECTS
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
3924 Utah Ave N 5201 Oregon Ave N 5355 Oregon Ave N 6027 West Broadway
Previously Assessed Value Sale Price/New Value
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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5201 Oregon Ave N - Before 5201 Oregon Ave N - After
7215 62nd Ave N - Before
SCATTERED SITE HOUSING
3924 Utah Ave N - Before 3924 Utah Ave N - After
PAGE 13
7215 62nd Ave N - Before
5355 Oregon Ave N - Before 5355 Oregon Ave N - After
6027 West Broadway - Before 6027 West Broadway - After
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
SCATTERED SITE HOUSING
In addition to these completed projects, there are six other scattered site projects under construction or in
progress as of when this report was published and are listed below. Homes sold in 2021 will be included in
the 2022 Economic Development Report.
• Demolition, lot split, and rebuild at 5353 Oregon Avenue North (one of the two new homes sold in
2020 and is included in this report and the other sold for $385,750 in 2021).
• Demolition and rebuild at 4215 Louisiana Avenue North (new home sold for $435,000 in 2021).
• Rehabilitation with Habitat for Humanity at 8720 47th Avenue North (project underway).
• Demolition and rebuild at 4637 Aquila Avenue North (builder selected, new home projected to sell for
$445,000).
• Demolition and rebuild at 5213 Pennsylvania Avenue North (builder selected, new home projected to
sell for $485,000).
• Demolition and rebuild at 3611 Louisiana Avenue North (city’s bid accepted at sheriff’s sale).
PROPERTY VALUES
2016 2017 2018 2019 2020
Taxable market
value $1,535,054,114 $1,697,092,365 $1,831,436,951 $2,021,382,123 $2,177,389,934
Percent change 7.28%10.56%7.92%10.37%7.72%
PROPERTY VALUES
2016 2017 2018 2019 2020
$400,000,000
$800,000,000
$1,200,000,000
$1,600,000,000
$2,000,000,000
$2,400,000,000
$2,800,000,000
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CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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MEDIAN HOUSEHOLD VALUES
2016 2017 2018 2019 2020
Median
Household Value $196,000 $213,000 $229,000 $244,000 $257,000
Percent change 3.98%8.67%7.51%6.55%5.33%
HOUSEHOLD VALUE
2016 2017 2018 2019 2020
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000