05 09 22 EDA MinutesEDA Meeting
Page 1 May 9, 2022
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes May 9, 2022
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:48 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
Dan Boyum, City Engineer
Tim Hoyt, Police Chief
Valerie Leone, City Clerk
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
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 February 28, 2022. Voting in favor: Hemken, Elder, Hoffe,
Isenberg, London; Abstained: Elder. Motion carried.
5306 RHODE ISLAND
AVE N
(IMPROVEMENT
PROJECT NO. 1080)
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
purchase and redevelopment agreement with Fieldstone Family Homes, Inc. for
the sale of 5306 Rhode Island Avenue North (improvement project no. 1080).
Mr. Jeff Alger, community development specialist, stated the public hearing is to
approve the sale of 5306 Rhode Island Avenue North to Fieldstone Family Homes, Inc.
He explained the EDA acquired 5306 Rhode Island Avenue North in January of 2022
as part of the city’s scattered site housing program for $130,000. He reported since 2006
the city has facilitated the construction of 37 new homes in the neighborhood, and the
average sales price for a home constructed in the Windsor Ridge subdivision was
$430,000.
Mr. Alger stated the home at 5306 Rhode Island Avenue North was demolished in
April, and the lot has been prepared for construction of a new single‐family home. He
stated a Request for Proposal was sent to 40 builders, and the city received five
proposals. Staff reviewed the proposals with the city manager and selected “Macalester
Elevation B” from Fieldstone Family Homes as the preferred proposal. He reviewed
the proposals and explained Fieldstone Family Homes’ two‐story home includes the
highest projected sales price ($575,000), the highest lot purchase price ($87,000), several
upgrades including high‐end interior finishes. The finished square footage will be 2,259
and the buyer would have the option of finishing the basement. The estimated
EDA Meeting
Page 2 May 9, 2022
expenses for the project are $253,072, and the lot would be sold for $87,000 resulting in
a net loss of $166,072. If the property were valued at $575,000 the total taxes paid to the
city would increase by $2,100 in 2024, as compared to 2022. The closing would occur
within 60 days, and construction is expected to begin this summer. Fieldstone Family
Homes is a custom home builder based out of Burnsville and this will be their first
project in New Hope. Funding for the project would be through the EDA budget.
Council Member London complimented staff on the advancement of the scattered site
housing program and successful projects.
Mr. Matt Bruels and Mr. Brian Bruels of Fieldstone Family Homes, were recognized.
They thanked the city for the opportunity to work in New Hope.
President Hemken opened the floor for the public hearing. There was no one in the
audience desirous of addressing the EDA for the public hearing.
CLOSE HEARING
Item 4
Motion was made by Commissioner London, seconded by Commissioner Hoffe,
to close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2022‐04
Item 4
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH FIELDSTONE FAMILY HOMES, INC. FOR THE SALE
OF 5306 RHODE ISLAND AVENUE NORTH (IMPROVEMENT PROJECT NO.
1080).” The motion for the adoption of the foregoing resolution was seconded by
Commissioner London, 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.
CURBSIDE APPEAL
REIMBURSEMENT
PROGRAM
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution approving
curbside appeal reimbursement program.
Mr. Jeff Alger, community development specialist, stated the program is intended to
encourage homeowners to make improvements to the exterior of their homes and
garages in areas that are visible from the street. The city will reimburse a portion of the
costs for projects that meet eligibility requirements. All projects must be pre‐approved
by city staff. There are no income limits to participate in the program, and
reimbursement amounts range from a minimum of $1,000 to a maximum of $5,000.
Applicants are responsible for 75% of project costs up to $20,000 and 100% of costs
beyond $20,000. Staff recommends allocating $100,000 per year for the program
through the EDA budget. Implementation of the program in 2022 will be funded by
the general fund surplus generated by ARPA (America Rescue Plan Act) funding
received in 2021 and 2022.
Mr. Alger responded to inquiries by Council. He stated applications will be reviewed
on a first‐come, first served basis and if funding is depleted in a given year, applicants
can be placed on a wait list for the next year. He confirmed there are no income
restrictions or requirements for participants to remain in the home a certain length of
time.
EDA Meeting
Page 3 May 9, 2022
RESOLUTION 2022‐05
Item 5
Commissioner Isenberg introduced the following resolution and moved its
adoption “RESOLUTION APPROVING CURBSIDE APPEAL REIMBURSE‐
MENT PROGRAM.” The motion for the adoption of the foregoing resolution was
seconded by Commissioner London, 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 8:13 p.m.
Respectfully submitted,
Valerie Leone, City Clerk