030804 EDA OFFICIAL FILE COPY
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
March 8, 2004
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
1. Call to order
2. Roll call
3. Approval of regular meeting minutes of February 23, 2004
4. Resolution authorizing acquisition of property at 7901 Bass Lake Road by direct
negotiation or eminent domain (improvement Project no. 754)
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes February 23, 2004
Regular Meeting City Hall
CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order
at 8:21 p.m.
ROLL CALL Present: W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Absent: Steve Sommer, Commissioner
APPROVE MINUTES Motion was made by Commissioner Collier, seconded by Commissioner Cassen, to
approve the Regular Meeting Minutes of February 9, 2004. All present voted in
favor. Motion carried.
SECTION 8 President Enck introduced for discussion Item 4, Resolution approving termination
CONTRACT of section 8 housing assistance payments program contract for administrative
Item 4 services with Metropolitan Council and approving contract for inspection services.
Mr. Kirk McDonald, Director of Community Development, stated the city of New
Hope has contracted with the Metropolitan Housing and Redevelopment Authority/
Metropolitan Council for the past 20+ years to administer the Section 8 Housing
Assistance Payments Program on a local level. The city employed a full-time
Section 8 housing coordinator to administer the program, the city provided
inspection services for the clients, and reimbursements from the Met Council/HUD
covered all costs of the program and position. In 2003, the long-time Section 8
coordinator retired and the city hired a new employee for the position, and that
employee has submitted a letter of resignation. With the primary focus of the
Community Development Department being on redevelopment at this time, staff is
recommending that the administrative services portion of the contract be returned to
the Met Council and that the city retain the inspection services portion of the
contract. This will enable staff to spend more time on redevelopment activities, yet
still maintain a close connection to the multiple family dwelling managers/owners
in the city via the inspection process.
To accomplish this objective, staff is recommending that the current contract with
Metro I-IRA be terminated for administration and that a new contract for inspection
services be approved. Staff has discussed this change with Metro I-IRA supervisory
staff and they support the change. A letter has already been sent to Metro HRA
advising that this recommended change would be presented to the EDA. They are
prepared to take over the caseload of the New Hope Section 8 clients. Staffhas also
discussed these changes with the city manager, director of finance, and others (all
who are supportive of this action). The change will have a minimal budget impact.
President Enck noted his appreciation regarding the effective dialogue between the
Community Development Depamnent and Metro I-IRA.
Commissioner Gwin-Lenth expressed support for the change but questioned the
impact to the clients.
EDA Meeting February 23, 2004
Page 1
Mr. McDonald stated most of the communications are handled by telephone or mail.
The in-person meetings will be handled at the office in St. Paul.
Commissioner Gwin-Lenth recommended that staff offer New Hope city hall as a
satellite office (such as one day per month) to alleviate section 8 clients'
transportation issues.
EDARESOLUTION Commissioner Gwin-Lenth introduced the following resolution and moved its
04-11 adoption "RESOLUTION APPROVING TERMINATION OF SECTION 8
Item4 }lOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT FOR
ADMINISTRATIVE SERVICES WITH METROPOLITAN COUNCIL AND
APPROVING CONTRACT FOR INSPECTION SERVICES." The motion for
the adoption of the foregoing resolution was seconded by Commissioner Cassen,
and upon vote being taken thereon, the following voted in favor thereof: Enck,
Cassen, Collier, Gwin-Lenth, and the following voted against the same: None;
Abstained: None; Absent: Sommer; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the executive
director.
IMP. PROJECT 754 President Enck introduced for discussion Item 5, Update on potential redevelopment
Item $ by Bear Creek Capital and CVS Pharmacy and motion authorizing preparation of
resolution of friendly condemnation for property at 7901 Bass Lake Road
(improvement project no. 754).
Mr. McDonald, Director of Community Development, stated at the January 26,
2004, EDA meeting, staff updated the EDA on the status of the project and reported
that the acquisition of the residential property by CVS was moving forward, but that
there had not been any progress made on the Sinclair site at 7901 Bass Lake Road.
Subsequent to that meeting, CVS and Sinclair have been negotiating directly with
one another and Sinclair has agreed to a sales price, subject to certain conditions.
One of the conditions is that the city approve a resolution of friendly condemnation
for the Sinclair site for monetary reinvestment purposes. If the development would
move forward, the resolution would be presented for approval at a later date.
Other issues that staff continues to work on with the developer related to this
development include:
· Preparing a more detailed site plan and addressing storm water issues.
· Future meeting with School District officials regarding a potential minor land
swap.
· Developer responsible for all costs, including relocation of existing tenant and
soil cleanup issues.
· Coordination on potential creation of TIF district to benefit other development
projects in the area.
Commissioner Cassen recommended inquiring whether the School District would
be willing to sell its property outfight rather than making a property trade.
The EDA authorized staff to prepare a resolution of friendly condemnation for
property at 7901 Bass Lake Road in the future if the CVS project proceeds.
ADJOURNMENT Motion was made by Commissioner Cassen, seconded by Commissioner Gwin-
Lenth, to adjourn the meeting. All present voted in favor. Motion carried. The
New Hope EDA adjourned at 8:31 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting February 23, 2004
Page 2
EDA
j. . REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 03-08-04 EDA
Item No.
4
By: Kirk McDonald By:
RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY AT 7901 BASS LAKE ROAD BY DIRECT
NEGOTIATION OR EMINENT DOMAIN (IMPROVEMENT PROJECT NO. 754)
REQUESTED ACTION
Staff recommends that the Economic Development Authority approve the enclosed resolution authorizing
acquisition of property at 7901 Bass Lake Road by direct negotiation or eminent domain. The original
resolution was prepared on advice of the New Hope city attorney by Peter Coyle, Larkin Hoffman Law Firm,
representing Bear Creek Capital/CVS Pharmacy. The resolution was then reviewed and approved by the New
Hope city attorney after minor modifications were made.
POLICY/PAST PRACTICE
The City Council or EDA has approved similar resolutions in the past when businesses are acquired on a
voluntary basis by either the city or a developer for redevelopment purposes and the property owner requests
a resolution of friendly condemnation for monetary reinvestment purposes. The City Council approved a
similar resolution for the acquisition of the office building at 7801 Bass Lake Road in December 2002.
BACKGROUND
Staff has discussed the potential redevelopment of the southwest corner of Winnetka Avenue and Bass Lake
Road parcels by CVS Pharmacy/Bear Creek Capital at the January 26 and February 24, 2004, EDA meetings.
At the February 23 EDA meeting, the EDA indicated that it would approve a resolution of friendly
condemnation for the CVS Pharmacy acquisition of the Sinclair station located at 7901 Bass Lake Road.
The attorney representing CVS Pharmacy has submitted the attached correspondence and resolution for
consideration by the EDA relating to this project. The New Hope city attorney has reviewed and slightly
modified the resolution and staff is recommending approval of the resolution. The letter states that Bear Creek
Capital, on behalf of CVS Pharmacy, has been in direct negotiations with the fee owner of the Sinclair property
and that they are optimistic that a negotiated agreement can be reached. Therefore, eminent domain will
probably not be necessary, but the passage of the resolution allows Sinclair to utilize some financial
reinvestment options that would otherwise not be available.
Staff recommends approval of the resolution.
ATTACHMENTS: Resolution
3/2/04 Larkin Hoffman Correspondence
Map
· '
I\rfa\planning\liv comrn, kQ-CVS acc[ 7901 3-8-04
III I
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING ACQUISITION OF
PROPERTY AT 7901 BASS LAKE ROAD BY
DIRECT NEGOTIATION OR EMINENT DOMAIN
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope (EDA) as follows:
WHEREAS, the property located at 7901 Bass Lake Road is located within the
Winnetka West redevelopment area recently established by the City of New Hope; and
WHEREAS, the acquisition of the property at 7901 Bass Lake Road (hereafter Property)
is necessary for the successful completion and implementation of the Winnetka West
redevelopment area; and
WHEREAS, the City has caused to be prepared an appraisal, which appraisal indicates
the current market value of $445,000 for the Property; and
WHEREAS, the City has contacted the fee owner of the Property to determine their
interest in selling the Property; and
WHEREAS, it is uncertain whether the fee owner will sell the Property at its fair market
value; and
WHEREAS, the EDA has the statutory authority to acquire the Property through
condemnation by an Eminent Domain proceeding under Minn. Stat. Chap. 117; and
WHEREAS, the public purpose for such a taking would be the successful completion of
the Winnetka West redevelopment area; and
WHEREAS, the New Hope City Council sitting as the governing board of the EDA
hereby determines it is necessary to acquire the Property through direct purchase with the fee
owner or by condemnation through an Eminent Domain proceeding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New
Hope sitting as the governing board of the New Hope EDA as follows:
1. Staff is directed to contact the fee owner of the Property to determine whether an
agreement can be reached regarding the sale of the Property for redevelopment
2. That the City Manager, in the alternative, is hereby authorized and directed to commence
condemnation of the Property through an Eminent Domain proceeding in the event a
direct purchase of the Property is unsuccessful.
Dated the ~ day of March, 2004.
W. Peter Enck, Mayor
Attest:
Valerie Leone, City Clerk
P:~Attomey~Cnh Resolutions\CNH99.11289-001 resolution authorizing condem S/n¢lair Bass Lake Road. DOC
FROM LARKIN HOFFMAN DALY (952)896-3265 (TUE) 3. 2' 04 10'14/ST. 10:13/NO, 4260872974 P 2__
Larkin
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M~h 2, 2004 *'" ~'~~'~
Mr, Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
NcwHope, Mim~esota 55428
Re: Resolution Supporting Use of Condemnation for 7901 Bass Lake Road
Dear Mr. McDonald:
At~ached for consideration and action by the New Hope City Council, if appropriate, please find
a draft r~solution endorsing direct negotiation for the purchase of thc Sinclair property, 7901
Bass Lake Road or, in the alternative, the use of eminent domain proceedings to acquire such
property. This resolution is prepared baseA on the City Council's recent direction to City staff
that it is prepared to proceed with condemnation of the Sinclair propeJ'[y in the event a negotiated
purchase is not successful. In that respect, Bear Creek Capital, on behalf of CVS/Pharmacy, haz
been in direct negotiations with thc fee owner of the Sinclair property and we are optimistic that
a negotiated agreement can be reached.
Please call me if you have any questions.
~~t~ J~oyle, for
Larkin I-Ioffman Daly & Lindgren Ltd.
Direct Dial: (952) 896-3214
Direct Fax: (952) g96-3265
I~rrmn: pcoyle(~larkinhofflnan, com
cc: Bill Tippm~m~
Stcven Sorldrall, Bsq.
Dan Beeson, Bsq.
Enclosure
924g]7.1
Winnetka West Retail Development
N / % Boundary //V Site Plan
100 0 100 Feet
· ,/' Property i ~ Land Transfered to
Anderson _E.ngi.n, eering of Minnesota, ,LLC ~V ' ' Development
~"' ',, · -:~r ~ ,- :',-,'; ~ T ?..~ Building .... i
........... ., .............. ,.., .... . .............. I Land 'rransfered to School