121321 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, December 13, 2021
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Michael Isenberg
Commissioner Jonathan London
1. Call to order – EDA Meeting of December 13, 2021
2. Roll call
3. Approval of Minutes:
November 22, 2021
4. Resolution authorizing the final HRA levy pursuant to Minnesota Statutes, Section
469.033, subdivision 6 and approval of a final budget for fiscal year 2022
5. Adjournment
EDA Meeting
Page 1 November 22, 2021
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes November 22, 2021
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:28 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Michael Isenberg, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Elder, seconded by Commissioner Isenberg,
to approve the minutes of September 13, 2021. All present voted in favor. Motion
carried.
AMENDMENT 2 TO
CEE AGREEMENT
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
Amendment 2 to Loan Origination Agreement between Center for Energy and
Environment (CEE) and EDA.
Mr. Jeff Alger, community development specialist, explained the city has
partnered with CEE since 2012 to administer housing loan/grant programs to New
Hope residents. He stated the EDA is asked to approve an amendment to the loan
origination agreement with CEE. The current agreement expires on December 31,
2021, and the resolution would renew a revised three‐year contract. He explained
the programs and usage levels.
Mr. Alger stated some of the fees have increased and exact costs will depend on
the number of loans issued. He pointed out there was an increase in the number
of loans issued when the interest rate was reduced from 4% to 2%. Mr. Alger stated
the contract amendment also includes an increase of the annual administration fee
from $500 to $2,500. He stated funds are available in the EDA budget for extending
the CEE contract to offer housing loan/grants to New Hope residents.
The EDA expressed support for continuing the partnership with CEE.
RESOLUTION 2021‐09
Item 4
Commissioner London introduced the following resolution and moved its
adoption “RESOLUTION APPROVING AMENDMENT 2 TO LOAN
ORIGINATION AGREEMENT BETWEEN CENTER FOR ENERGY AND
ENVIRONMENT AND EDA.” The motion for the adoption of the foregoing
EDA Meeting
Page 2 November 22, 2021
resolution was seconded by Commissioner Isenberg, and upon vote being taken
thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg,
London; 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.
4215 NEVADA AVE N
(IMPROVEMENT
PROJECT NO. 1077)
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution approving
Purchase Agreement for the acquisition of 4215 Nevada Avenue North
(improvement project no. 1077).
Mr. Jeff Alger, community development specialist, stated the EDA has the
opportunity to purchase the property at 4215 Nevada Avenue North for $206,000
plus closing costs. He stated the property has a 2021 assessed value of $184,000,
and the appraised value is $206,000. The home was constructed in 1940s, and staff
believes the property is a good candidate for a demolition and rebuild project. A
new single‐family home at the site could have a 2022 taxable value of $430,000. It
is anticipated that the net loss on the project would be $159,301 based on project
expenses of $237,301 less $78,000 for revenue on the sale of the lot. He also
reviewed the 30‐year return on investment and 30‐year internal rate of return. Mr.
Alger stated the EDA budget would fund the purchase.
Mr. Alger pointed out the purpose of the scattered site housing program is not to
make a profit but to remove distressed and blighted properties, provide step‐up
housing options in the city, improve housing stock, invest/instill confidence in
neighborhoods, and increase home values and taxable market value of subject
parcel.
Mr. Kirk McDonald, executive director, commended Mr. Alger for a successful
negotiation with the property owner. He stated Mr. Alger informed the property
owner of the many advantages of selling the property to the city.
RESOLUTION 2021‐10
Item 5
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE
ACQUISITION OF 4215 NEVADA AVENUE NORTH (IMPROVEMENT
PROJECT NO. 1077).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Hoffe, and upon vote being taken thereon, the
following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; 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.
5306 RHODE ISLAND
AVE N
(IMPROVEMENT
PROJECT NO. 1080)
Item 6
President Hemken introduced for discussion EDA Item 6, Resolution approving
Purchase Agreement for the acquisition of 5306 Rhode Island Avenue North
(improvement project no. 1080).
Mr. Jeff Alger, community development specialist, stated the EDA has the
opportunity to purchase the property at 5306 Rhode Island Avenue North for
$213,000 plus closing costs. He stated the property has a 2021 assessed value of
$225,000, and the appraised value is $227,000. The home was constructed in 1959,
and staff believes the property is a good candidate for a demolition and rebuild
project. A new single‐family home at the site could have a 2022 taxable value of
EDA Meeting
Page 3 November 22, 2021
$430,000. It is anticipated that the net loss on the project would be $164,733 based
on project expenses of $244,733 less $80,000 for revenue on the sale of the lot. He
also reviewed the 30‐year return on investment and 30‐year internal rate of return.
Mr. Alger stated the EDA budget would fund the purchase. He reviewed the EDA
budget.
Mr. Alger answered questions of the EDA regarding the lot price. He stated the
appraisal includes the house and lot. He explained that when the lot is marketed
to builders, the city sets a minimum lot sale price that is based on recent sales and
the real estate market.
RESOLUTION 2021‐11
Item 6
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE
ACQUISITION OF 5306 RHODE ISLAND AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1080).” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Isenberg, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe,
Isenberg, London; 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.
ADJOURNMENT Motion was made by Commissioner Isenberg, seconded by Commissioner Elder,
to adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 7:51 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\City Manager\2021\Budget 2022\EDA 121321\EDA4 Q ‐ EDA property tax levy 12.13.21.docx
Request for Action
December 13, 2021
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution authorizing the final HRA levy pursuant to Minnesota Statutes, Section 469.033, subdivision 6 and
approval of a final budget for fiscal year 2022
Requested Action
Staff requests the EDA to adopt the attached resolution related to the HRA levy of $417,000 for 2022.
Background
Per the city attorney, with the addition of the new HRA levy, the EDA levy must be included in the city tax
rate and the HRA levy established as a special taxing district. A total of $570,000 is being budgeted for
redevelopment activities ($153,000 through the City levy and $417,000 through the HRA levy).
The city attorney has confirmed the EDA has authority to approve an HRA levy (a special taxing district
levy).
Attachments
EDA Resolution
Agenda Section
EDA
Item Number
4
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2021-
RESOLUTION AUTHORIZING THE FINAL HRA LEVY
PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A FINAL BUDGET FOR FISCAL YEAR 2022
WHEREAS, pursuant to Minnesota Statutes, Section 469.001 to 469.047 (the “HRA Act”), the City
Council of the City of New Hope created the City of New Hope Housing Redevelopment
Authority (HRA); and
WHEREAS, in 1989 the City Council of the City of New Hope established the Economic Development
Authority (“Authority”) to replace the HRA; and Section 469.033, subdivision 6, permits
the Authority to levy and collect a special benefit levy of up to .0185 percent of estimated
market value in the City upon all taxable real property within the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .0185 percent
estimated market value of the City; and
WHEREAS, the Authority has before it for its consideration of copy of a proposed budget for its
operations for the fiscal year 2022 and the amount of the proposed HRA levy for
collection in 2022 shall be based on this budget and the long range financial management
plan, subject to any adjustments in the budget as finally approved prior to certification of
the final special benefit levy.
NOW THEREFORE BE IT RESOLVED by the New Hope Economic Development Authority:
1. The proposed budget of $417,000 for the operations of the HRA in fiscal year 2022, is
hereby in all respects approved.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget
with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033,
Subdivision 6, is hereby approved in the amount of $417,000. The maximum amount that
can be levied is an amount equal to .0185 percent of the City of New Hope’s estimated
market value of $2,257,016,100.
4. Staff of the Authority are hereby authorized and directed to seek the approval of the City
Council of the budget and of the levy of special benefit taxes payable in 2022 and to
submit the final levy to the county auditor on or before five working days after December
20, 2021, pursuant to Minnesota Statutes, Section 275.07.
Adopted by the Economic Development Authority on December 13, 2021.
____________________________________
President
Attest:
Executive Director