121222 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, December 12, 2022
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Michael Isenberg
Commissioner Jonathan London
1. Call to order – EDA Meeting of December 12, 2022
2. Roll call
3. Approval of Minutes:
• November 14, 2022
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 2023
5. Adjournment
EDA Meeting
Page 1 November 14, 2022
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes November 14, 2022
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:45 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Michael Isenberg, Commissioner
Jonathan London, Commissioner
Staff Present:
Tim W. Hoyt, Acting City Manager
Jeff Alger, Community Development Specialist
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
Vicki Thompson, Administrative Specialist
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Hoffe, seconded by Commissioner Elder, to
approve the minutes of September 12, 2022. All present voted in favor. Motion
carried.
3611 LOUISIANA
AVENUE NORTH
(IMPROVEMENT
PROJECT NO. 1065)
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
Purchase Agreement for the acquisition of 3611 Louisiana Avenue North
(improvement project no. 1065).
Mr. Jeff Alger, community development specialist, stated staff is requesting
approval of a purchase agreement for the acquisition of 3611 Louisiana Avenue
North for $205,000 with traditional closing costs to be paid by each party.
Mr. Alger stated the 2022 assessed home value of the property per Hennepin
County is $251,000. The home was built in the 1940s, the lot is a .29 acre parcel,
and staff believes the property is a good candidate for a demolition and rebuild
project.
Mr. Alger reviewed the projected expenses of the project, return on investment,
and estimated increase in taxable property value. He stated funding for the project
would be through the EDA budget. He emphasized the primary focus of the
scattered site program is to target distressed single-family properties throughout
the city, with the goal of improving residential neighborhoods. It is understood
that potential losses are incurred on each project, as the cost to acquire and
redevelop distressed properties often exceeds the value of the new or rehabilitated
home.
EDA Meeting
Page 2 November 14, 2022
Mr. Alger explained the city has budgeted $500,000 for the scattered site program
in 2022, and the acquisition of 3611 Louisiana Avenue North will put the EDA
approximately $30,000 over budget. He noted the program was under budget by
$159,301 in 2021.
President Hemken asked if the lot price will be higher since housing costs are
increasing. Mr. Alger responded that the EDA could possibly receive more than
$75,000 for the lot price from a builder.
Commissioner London questioned whether being over budget will impact any
other targeted projects. Mr. Alger stated there are no other proposed new projects
for 2022. He also noted $500,000 is included in the 2023 EDA budget for the
scattered site housing program.
RESOLUTION 2022-08
Item 4
Commissioner London introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE
ACQUISITION OF 3611 LOUISIANA AVENUE NORTH (IMPROVEMENT
PROJECT NO. 1065).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Elder, 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 8:00 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\City Manager\2022\Budget 2023\EDA 12.12.22\EDA4 Q - EDA property tax levy 12.12.22.docx
Request for Action
December 12, 2022
Approved by: Tim Hoyt, Acting City Manager
Originating Department: City Manager
By: Valerie Leone, City Clerk-Treas.
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 2023
Requested Action
Staff requests the EDA to adopt the attached resolution related to the HRA levy of $437,850 for 2023.
Background
Per the city attorney, the HRA levy must be included in the city tax rate and the HRA levy established as a
special taxing district. A total of $598,500 is being budgeted for redevelopment activities ($160,650 through
the City levy and $437,850 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. 2022-
RESOLUTION AUTHORIZING THE FINAL HRA LEVY
PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A FINAL BUDGET FOR FISCAL YEAR 2023
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 2023 and the amount of the proposed HRA levy for
collection in 2023 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 $437,850 for the operations of the HRA in fiscal year 2023, 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 $437,850. 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 $2,382,189,700.
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 2023 and to
submit the final levy to the county auditor on or before five working days after December
20, 2022, pursuant to Minnesota Statutes, Section 275.07.
Adopted by the Economic Development Authority on December 12, 2022.
____________________________________
President
Attest:
Executive Director