091123 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, September 11, 2023
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Michael Isenberg
Commissioner Jonathan London
1. Call to order – EDA Meeting of September 11, 2023
2. Roll call
3. Approval of Minutes:
• August 28, 2023
4. Resolution authorizing the proposed HRA levy pursuant to Minnesota Statutes,
Section 469.033, subdivision 6 and approval of a preliminary budget for fiscal year
2024
5. Adjournment
EDA Meeting
Page 1 August 28, 2023
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes August 28, 2023
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:41 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Michael Isenberg, Commissioner
Jonathan London, Commissioner
Staff Present:
Recce Bertholf, City Manager
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Elder, seconded by Commissioner Hoffe, to
approve the minutes of July 24, 2023. All present voted in favor. Motion carried.
5802 BOONE AVE N
(IMPROVEMENT
PROJECT NO. 1088)
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
purchase and redevelopment agreement with Great Buy Homes, Inc. for the sale
of 5802 Boone Avenue North (improvement project no. 1088).
Mr. Jeff Alger, community development specialist, stated the EDA acquired 5802
Boone Avenue North in April of 2023 as part of the city’s scattered site housing
program. Demolition work was completed in July of 2023, and the lot has been
prepared for construction of a new single‐family home. He explained staff
recommends selling the property to Great Buy Homes, Inc. for $70,000 for
construction of a split‐level design home that would have a projected sales price
of $475,000 to $480,000. Great Buy Homes has constructed many quality homes in
the city. The EDA is asked to approve the purchase and redevelopment agreement
for the sale of the lot. The agreement ensures that the builder meets the conditions
set forth in the RFP. The home will be completed within a year of the closing date.
Mr. Alger explained the RFP listed a two‐story or rambler design as the preferred
styles, but only one proposal was received. The builder has had success with split‐
level designs in New Hope and felt it would be more marketable than a rambler.
He noted the city has worked with Great Buy Homes in the past and the builder
has sold 11 homes in New Hope. He stated builders who did not submit proposals
cited various reasons including housing market and interest rates, existing unsold
EDA Meeting
Page 2 August 28, 2023
inventory, not having been selected with previous proposals, and the high‐traffic
location of the lot.
Mr. Alger stated the project expenses are approximately $197,000, and after sale of
the lot for $70,000 the net loss would be $127,000. He reviewed the projected
market values, estimated taxes, return on investment and internal rate of return.
He recommended the EDA conduct the public hearing and adopt the resolution
approving the sale of the lot to Great Buy Homes. He stated the builder has
requested up to 120 days instead of the standard 60 days for closing on the sale of
the lot.
The EDA discussed the current market conditions of home sales. Commissioner
London advocated holding the property for 6‐12 months in hopes that conditions
improve. He pointed out the large lot should attract a design other than a split‐
entry style home.
Mr. Shawn Rogers, the realtor representing Great Buy Homes, was recognized. He
shared the high holding costs to builders for unsold properties. He cited examples
of recent cases. He pointed out the split entry design is more affordable as the sales
price is approximately $100,000 less than a two‐story design.
President Hemken opened the public hearing for comments from the audience.
There was no one desirous of addressing the EDA for the public hearing.
CLOSE HEARING
Item 4
Motion was made by Commissioner Isenberg, seconded by Commissioner Elder,
to close the public hearing. All present voted in favor. Motion carried.
MOTION Commissioner London made a motion to postpone the sale of the lot indefinitely.
Motion failed for lack of a second.
Commissioner Isenberg acknowledged Commissioner London’s concerns and
stated he would agree to postponing the lot sale if an improvement in market
conditions was guaranteed in the near future. He stated the construction of a split‐
entry style home will generate taxes and improve the neighborhood. He stated
perhaps a future scattered site house can be a two‐story design.
RESOLUTION 2023‐09
Item 4
Commissioner Isenberg introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AND
REDEVELOPMENT AGREEMENT WITH GREAT BUY HOMES, INC. FOR
THE SALE OF 5802 BOONE AVENUE NORTH (IMPROVEMENT PROJECT
NO. 1088).” 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; and the following voted against
the same: London; 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.
4965 WINNETKA AVE
N (IMPROVEMENT
PROJECT NO. 1060)
President Hemken introduced for discussion EDA Item 5, Resolution approving
contract with Bollig & Sons, Inc. for hazardous material abatement, well sealing,
removal of appliances, demolition and disposal of remaining material following
EDA Meeting
Page 3 August 28, 2023
Item 5 burn, tree removal, sewer lining and water service valve replacement for existing
services, installation of new sewer and water services and sump pump stub for
future second lot and site re‐grading at 4965 Winnetka Avenue North
(improvement project no. 1060).
Mr. Jeff Alger, community development specialist, stated in June of 2023 the EDA
acquired the single‐family home located at 4965 Winnetka Avenue North as part
of the city’s scattered site housing program. Bids were solicited to prepare the site
for redevelopment for construction of two homes. The low bid was submitted by
Bollig & Sons, Inc. for $67,000 with a negative toxicity characteristic leaching
procedure (TCLP) test on remaining debris or $69,000 with a positive TCLP test.
The work includes hazardous material abatement, well sealing, removal of
appliances prior to controlled burn, demolition and disposal of remaining material
following burn, tree removal, sewer lining and water service valve replacement
for existing services, installation of new sewer services, water services, and sump
pump stub for future second lot, and site grading. Bollig & Sons has been serving
the metro area since 1957. The city has not used the services of Bollig & Sons in the
past, but Donnay Homes, a scattered site homebuilder that has built in New Hope,
has worked with them on previous projects and recommends the company.
He explained the EDA budget would fund the contract. It is anticipated a lot split
will be completed this winter and the lots would be marketed to builders in the
spring of 2024.
Mr. Alger also reported on the control burn training exercise scheduled by West
Metro Fire‐Rescue District at the site in October.
RESOLUTION 2023‐10
Item 5
Commissioner Isenberg introduced the following resolution and moved its
adoption “RESOLUTION APPROVING CONTRACT WITH BOLLIG & SONS,
INC. FOR HAZARDOUS MATERIAL ABATEMENT, WELL SEALING,
REMOVAL OF APPLIANCES, DEMOLITION AND DISPOSAL OF
REMAINING MATERIAL FOLLOWING BURN, TREE REMOVAL, SEWER
LINING AND WATER SERVICE VALVE REPLACEMENT FOR EXISTING
SERVICES, INSTALLATION OF NEW SEWER AND WATER SERVICES AND
SUMP PUMP STUB FOR FUTURE SECOND LOT AND SITE RE‐GRADING
AT 4965 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO.
1060).” 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.
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 8:20 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\City Manager\2023\Budget 2024\EDA 091123\EDA4 Q ‐ EDA property tax levy 9.11.23.docx
Request for Action
September 11, 2023
Approved by: Reece Bertholf, City Manager
Originating Department: City Manager
By: Reece Bertholf, City Manager
Agenda Title
Resolution authorizing the proposed HRA levy pursuant to Minnesota Statutes, Section 469.033, subdivision
6 and approval of a preliminary budget for fiscal year 2024
Requested Action
Staff requests the EDA to adopt the attached resolution establishing the HRA levy of $459,743 for the 2024
budget.
Background
The city is adopting an EDA levy and an HRA levy. The preliminary budget presented at the August work
session included a $168,683 EDA levy and a $459,743 HRA levy for a total of $628,426 for redevelopment
activities, etc).
The HRA levy was implemented with the 2022 budget year. At that time the city attorney informed staff that
with the addition of the HRA levy, the EDA levy must be included in the city tax rate and the HRA levy
established as a special taxing district. Also, the EDA has authority to approve an HRA levy (a special taxing
district levy).
Attachments
EDA Resolution
Hennepin County Levy Limitations
Agenda Section
EDA
Item Number
4
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2023‐
RESOLUTION AUTHORIZING THE PROPOSED HRA LEVY
PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2024
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, pursuant to Minnesota Statutes, Section 275.065, the Authority is required to adopt a
proposed budget and a proposed tax levy and submit the same to the County Auditor by September 30;
and
WHEREAS, the Authority has before it the amount of the proposed HRA levy for collection in 2024,
subject to any adjustments in the final levy.
NOW THEREFORE BE IT RESOLVED by the New Hope Economic Development Authority:
1. The proposed budget of $459,743 for the operations of the HRA in fiscal year 2024, as presented for
consideration by the City Council, is hereby in all respects approved, subject to final approval by the
Authority before certification of the tax levy under Minnesota Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in
accordance with Minnesota Statues, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is
hereby approved in maximum amount equal to .0185 percent of estimated market value in the City of
New Hope, currently estimated to be $2,747,910,400 subject to final approval by the Authority before
certification of the special benefit levy pursuant to Minnesota Statues, Section 275.07.
4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the
City Council of the levy of special benefit taxes payable in 2024 and to take such other actions as are
necessary to bring before the Board the preliminary budget and levy to be sent to the county auditor
by September 30, 2023.
Adopted by the Economic Development Authority on September 11, 2023.
______________________________________
President
Attest:
Executive Director