Economic Development Report 2023ECONOMIC DEVELOPMENT REPORT
CITY OF NEW HOPE, MINNESOTA
SEPTEMBER 1, 2023
The city of New Hope Economic Development Report highlights redevelopment projects
throughout the city from the previous year and the tools that are in place to promote
development activity. The city’s Economic Development Authority promotes and facilitates
business development and housing redevelopment activities.
OVERVIEW & HISTORY
CITY OF NEW HOPE OVERVIEW & HISTORY
LOCATION
The city of New Hope is a suburb located northwest
of Minneapolis with strong neighborhoods, an
abundance of parks and recreational opportunities,
excellent schools, and great shopping nearby. The
city has easy access to the entire Twin Cities area
with major arterials of Highway 169, Highway 100,
Interstate 694, and Interstate 394 all nearby.
POPULATION (2020 CENSUS)SIZE/AREA YEAR FORMED
21,986 5.1 square miles 1953
BUSINESSES JOBS SHOPPING CENTERS
480 10,969 5
SCHOOL DISTRICT SCHOOLS PARKS/ACREAGE
Robbinsdale Area (281)6 18/200
HISTORY
In the early 1900s, New Hope was a farming-rich
community. The area was settled as part of Crystal
Lake Township and became the home for many
family farms. As housing developments spread west
from Minneapolis in the 1930s, the residents of Crystal Lake Township began the movement to
incorporate the township. In 1936, the city of Crystal was incorporated. Forming a city, though,
was not supported by all residents in the township. The rural residents in the western half of
the township broke away from the city of Crystal and formed their own township. The resistant
residents, mostly farmers, were unhappy about paying taxes for projects such as street lighting
and sanitary sewer. The name the farmers selected for their new township was a reflection of
the time, New Hope.
Many residents along the New Hope-Crystal border formed groups and requested to be
annexed by Crystal in order to receive what were the most modern city services at the time.
Others, however, were happy to be part of New Hope township and remained separate from
Crystal. Therefore, pockets of New Hope residents were created along the eastern boundary.
By the early 1950s, the rapidly developing township of New Hope chose the fate it had eluded
just over 15 years earlier. In 1953, New Hope incorporated as a city to prevent losing more of
its land and residents to Crystal via annexation. This move was again opposed by the farming
community of New Hope, but housing developments between 1936 and 1953 had made farmers
a minority in New Hope.
When the township was incorporated, it had 600 residents. The city grew rapidly and was home
to over 2,500 people by 1958. This rapid population growth continued through the 1960s, and by
1971, there were 24,000 residents in New Hope. The population of the community has declined
slightly since 1971.
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SUMMARY OF ACTIVITY
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
The city of New Hope’s Economic Development Authority (EDA) promotes and facilitates business
development activities. It considers proposals on a case-by-case basis and utilizes a broad base of public
financing options. Membership of the EDA is identical to that of the New Hope City Council. Council members
are appointed to the commission for terms concurrent with the City Council terms and the mayor acts as
president of the authority. The city manager serves as the executive director. The city employs various
resources to help businesses grow and reach their goals.
BUSINESSES & ASSISTANCE PROGRAMS
Local commercial and industrial businesses are extremely important to the city. The City Council has
undertaken programs and initiatives to address both commercial and industrial properties. These programs
focus on:
• Retaining existing businesses.
• Assisting with expansions.
• Attracting new businesses to vacant available buildings.
• Attracting new construction to a limited number of available vacant sites.
• Improving communication with businesses and responding more effectively to business concerns and
inquiries.
BUSINESS SUBSIDY PROGRAM
The city’s business subsidy program addresses policies related to the use of Tax Increment Financing (TIF),
tax abatement, and other business assistance programs for private development. It serves as a guide
in reviewing applications requesting business assistance. All projects must meet mandatory minimum
approval criteria and the level of assistance is evaluated on a case-by-case basis. Assistance can cover
project costs as allowed for under Minnesota Statutes. The EDA considers using a business assistance tool
to assist private developments in circumstances in which the proposed private project meets one of the
following uses:
• Provides a diversity of housing not currently provided by the private market.
• Provides a variety of housing ownership alternatives and housing choices.
• Promotes affordable housing for low- or moderate-income individuals.
• Promotes neighborhood stabilization and revitalization through the removal of blight and by upgrading
the existing housing stock in residential areas.
• Removes blight and encourages redevelopment in the commercial and industrial areas of the city
in order to encourage high levels of property maintenance and private reinvestment in those areas,
including façade improvement.
• Increases the tax base of the city to ensure the long-term ability of the city to provide adequate services
for its residents, while lessening the reliance on residential property tax.
• Retains local jobs, increases the local job base, and provides diversity in that job base.
• Increases the local business and industrial market potential of the city.
• Encourages additional unsubsidized private development in the area, either directly or through
secondary “spinoff” development.
• Offsets increased costs of redevelopment over and above the costs that a developer would incur in
normal development.
• Accelerates the development process and achieves development on sites that would not be developed
without this assistance.
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CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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LOAN PROGRAMS
The city has partnered with the lending center at the Center for
Energy and Environment (CEE) to offer a convenient one-stop service
that provides commercial and non-profit property owners in New Hope
access to a comprehensive array of financing and rehabilitation services.
The CEE Loan Program provides financing to New Hope businesses making cost-effective, energy efficiency
improvements. Nonprofit organizations that are interested in reducing their energy costs are eligible to
apply for funds through the CEE to help finance energy-efficient projects implemented in properties owned
and/or occupied by nonprofit entities.
OUTSTANDING BUSINESS AWARD PROGRAM
The city’s Outstanding Business Award Program was initiated in 2006 to recognize contributions by
businesses to the local community. The purpose of the award program is to recognize businesses for
noteworthy accomplishments such as expanding or improving a building or property, creating new jobs for
New Hope residents, reaching a milestone year in business, or providing outstanding community service.
Nominations are accepted quarterly for the award.
BUSINESS NETWORKING GROUP
The New Hope Business Networking Group was started by New Hope business owners in 2010 to create an
open forum for networking within the city. The group is open and free to all New Hope business owners.
The Business Networking Group meets regularly at one of the participating businesses. The city is also a
long-time member of Minneapolis Regional Chamber (previously TwinWest Chamber of Commerce).
BUSINESS RESOURCES
Open to Business was a partnership between New Hope and the
Metropolitan Consortium of Community Developers (MCCD), an
association of nonprofit community development organizations
serving the Twin Cities that was in place through the end of 2022.
The city worked with MCCD to provide business consultation
services and financial advice to small local business owners and
aspiring business owners. Entrepreneurs were able to meet with
business advisors who offered assistance in several areas.
Beginning in 2023, the city became a partner in the Elevate Hennepin
program. Elevate Hennepin is a resource hub powered by Hennepin
County that brings expert advising and other business resources to
New Hope businesses at no cost. Designed in consultation with local
entrepreneurs and business owners, Elevate Hennepin provides
inclusive access to resources for starting and scaling a business.
Elevate Hennepin was created to better connect business owners and entrepreneurs to expertise, capital,
and resources. With investment from Hennepin County and other local and state government partners, all
professional consultants, technical expertise, trainings, and events are available at no cost to businesses
located in Hennepin County. Elevate Hennepin draws together experts, tools, and programs intentionally
designed to help new and established businesses gain their footing, plan for their next steps, and take their
success to a new level. Elevate Hennepin provides three types of business services:
• No-cost expert consulting covering a wide range of essential business areas including legal, marketing,
strategic planning, and operations.
• An events hub for business owners to find ways to network, connect in peer-to-peer discussions,
learn, and enhance their businesses.
• A resource directory for business owners to explore county, state, and federal resources that can
empower their business.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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EMPLOYMENT
There are approximately 480 commercial/industrial/service businesses in the city, 56 of which opened in
2022. These businesses account for approximately 10,969 jobs in the city. The city’s 15 largest employers,
which are listed below, account for many of those jobs.
MAJOR EMPLOYERS
Employer Products/Services New Hope-Based Employees
(Total Employees)
Independent School District 281 Education 631 (1,792)
Minnesota Masonic Home/
North Ridge Care Center Skilled nursing care facility 560
Hy-Vee Grocery & convenience store 370
Horwitz Mechanical contractor 348
City of New Hope Government agency 338 including seasonal staff
Padagis Pharmaceutical and medicine
manufacturing 315
St. Therese Home of New Hope Skilled nursing care facility 286 (787)
YMCA Health club 228
Liberty Diversified International Stationery supplies 200
Intermediate District 287 Education 199 (791)
Parker - Hannifin Oildyne Division Hydraulic component production 172
Dakota Growers Pasta Company Macaroni & spaghetti 159
Waymouth Farms, Inc.Salted & roasted nuts & seeds 150
Good Samaritan Society Skilled nursing care facility 136
Avtec Warehousing & metal finishing 118
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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PLANNING & DEVELOPMENT
The city continues to see significant growth in commercial, industrial, and single-family housing areas.
Overall development activity has slowed in recent years due in part to the pandemic, though the city
anticipates that more growth will take place over the next several years.
DEVELOPMENT ACTIVITY
From 2018-2022, $159,570,678 of reinvestment was approved in the city through construction permits. The
city is striving to increase momentum to continually increase the tax base, while providing the highest level
of services to residents, businesses, and property owners. Building permits for the construction of a new
city center aquatic center and community theater were issued in 2019, accounting for nearly $18 million of
the $38 million in work for the year.
DEVELOPMENT ACTIVITY BY YEAR
2018 2019 2020 2021 2022
Permits issued 2,441 2,459 2,536 2,870 2,559
Fees collected $506,883 $452,267 $513,900 $544,109 $441,847
Valuation of work $46,952,876 $38,288,981 $27,832,249 $28,894,527 $17,602,045
VALUATION OF WORK
2018 2019 2020 2021 2022
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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The following planning and development activities occurred in the last year:
Windsor Ridge
SVK Development completed the construction of 32 new single-family homes on an 8.7-acre site that was
previously undeveloped and owned by the city. In the fall of 2018, the city received six proposals from four
developers for the site. After careful consideration, SVK Development was selected as the preferred builder
for the site. The new homes included a mix of rambler, split level, and two-story designs and sold for an
average price of $430,000. The project helped provide step-up housing options within the city and brought
more than $13.76 million in new value to the city. The city of Crystal also developed another three lots just
east of the project.
CITY OF CITY OF
CRYSTALCRYSTAL
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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Pallet One MN
Pallet One MN purchased the 55,000-square
foot building at 9210 Science Center Drive in
2022 and moved its operations into New Hope.
The company specializes in manufacturing
and recycling wood pallets. Pallet One MN
obtained a conditional use permit for open
outdoor storage on the property. Extensive
improvements were made to the outdoor
storage area, including the installation of 22
trees to help with screening of the storage
area. The business employs 30 people in one
of New Hope’s two primary industrial areas.
RISE Dispensary
At the end of 2022, RISE Dispensary began making
upgrades to the building at 7700 42nd Avenue North in
preparation for opening a medical cannabis retail
store. Approximately $750,000 in improvements were
made to the building, which was largely vacant in
recent years. RISE has seven locations across the metro
that are accessible to Minnesota residents that have
been certified with a qualifying medical condition.
The Cafe Meow
The Cafe Meow opened in the Winnetka Commons
shopping center at 3524 Winnetka Avenue North in June
of 2022. The business features a coffee shop and a cat
lounge. The coffee shop is similar to other small coffee
shops, providing coffee, tea, and baked goods from local
businesses. The separate cat lounge houses rescue cats
that can be visited and potentially adopted.
Padagis US LLC
The Minnesota Department of Employment and
Economic Development (DEED) approved a
$980,000 Minnesota Investment Fund loan for
Padagis US LLC. The loan was intended to help
with purchasing $5 million in new machinery and
adding 60 jobs to the facility at 3940 Quebec
Avenue North. The request was later withdrawn,
however, it is likely that the company will still be
investing in the facility. Padagis is a privately held pharmaceutical manufacturer that offers generic
prescription and over the counter products. The company was started in 2004 as the prescription
division of Perrigo. Through acquisitions and organic growth, they became a national leader in generic
pharmaceuticals. Padagis is the city’s sixth largest employer, with approximately 315 employees.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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HOUSING
LOAN PROGRAMS
Loans and financing for home improvement projects are available to residents of New Hope through the
Center for Energy and Environment and Hennepin County.
Center for Energy and Environment
The city has partnered with the lending center at the Center for Energy and Environment (CEE) to offer
a convenient one-stop service that provides residential property owners in New Hope access to a
comprehensive array of financing and rehabilitation services. The Low Interest Loan Program provides
loans and funds to homeowners to make improvements to their properties. An Emergency Deferred Loan
is also available for homeowners that have emergency improvement needs but do not qualify for other
home improvement loan or grant programs. The program is funded with Economic Development Authority
(EDA) funds. The following loans/subsidies/leveraged funds have been issued to New Hope residents
through the CEE in recent years:
2018 2019 2020 2021 2022
Loans/Subsidies/
Leveraged Funds 4 3 5 13 10
Amount $71,438 $35,320 $71,822 $259,574 $169,264
Hennepin County
Hennepin County’s Home Rehab Program enables income-qualified residents to request loans that address
basic safety, maintenance, and health concerns, as well as home improvements. Loans up to $30,000 at
0% interest are available to residents of New Hope. No monthly payments are required, and the loans may
be forgiven after 15 years if residents continue to live in and own their home. The program is funded with
Community Development Block Grant (CDBG) funds allocated to Hennepin County through the Department
of Housing and Urban Development. The following loans have been issued to New Hope residents through
Hennepin County in recent years:
2018 2019 2020 2021 2022
Loans 1 1 1 2 2
Amount $12,600 $28,965 $30,000 $59,800 $59,205
Curbside Appeal Reimbursement Program
In July of 2022, the city launched the Curbside Appeal Reimbursement Program to encourage homeowners
to make improvements to the exterior of their homes and garages in areas that are visible from the
street. The city reimburses a portion of costs for projects meeting eligibility requirements. The goals of the
program include improving the city’s housing stock, instilling confidence in neighborhoods, and increasing
home values.
2022
Projects 11
Valuation of work $110,136
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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SCATTERED SITE HOUSING
Over the years, the city has utilized its Economic Development Authority (EDA) to acquire several properties
as part of the Scattered Site Housing Program. The primary focus of the program is to target distressed
single-family properties throughout the city, with the goal of improving residential neighborhoods. The
program currently emphasizes two primary activities: demolition and rehabilitation. When homes are
demolished, the vacant lot is sold to a builder for the construction of a new single-family home. Homes
that are rehabilitated are sold on the open market. The following scattered site housing projects were
completed and sold over the last year:
Address Previously
Assessed Value Sale Price Percent
Increase Project Type
4637 Aquila Ave N1 $91,000 $460,000 405%Demolition &
rebuild
5213 Pennsylvania Ave N $189,000 $575,000 204%Demolition &
rebuild
1 Assessed value prior to fire was $236,000 for the year 2020.
SCATTERED SITE HOUSING PROJECTS
4637 Aquila Ave N 5213 Pennsylvania Ave N
$75,000
$150,000
$225,000
$300,000
$375,000
$450,000
$525,000
$600,000
Previously Assessed Value Sale Price
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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5213 Pennsylvania Ave N - Before 5213 Pennsylvania Ave N - After
7215 62nd Ave N - Before
4637 Aquila Ave N - Before 4637 Aquila Ave N - After
SCATTERED SITE HOUSING
In addition to these completed projects, there were several other scattered site homes under construction
or projects in progress at the time of publication, including:
• Demolition and rebuild at 5306 Rhode Island Avenue North (new home sold for $550,000 in 2023).
• Demolition, lot split, and rebuild at 4201 Boone Avenue North (under construction).
• Demolition and rebuild at 3611 Louisiana Avenue North (under construction).
• Demolition and rebuild at 5802 Boone Avenue North (demolished).
• Demolition, lot split, and rebuild at 4965 Winnetka Avenue North (demolished).
Homes sold in 2023 will be highlighted in the 2024 Economic Development Report. Since 2014, approximately
$5.5 million in value has been added to the city’s tax base through the scattered site housing program.
CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
PROPERTY VALUES
2018 2019 2020 2021 2022
Taxable market
value $1,831,436,951 $2,021,382,123 $2,177,389,934 $2,308,596,615 $2,693,654,510
Percent change 7.92%10.37%7.72%6.03%16.68%
PROPERTY VALUES
2018 2019 2020 2021 2022
$400,000,000
$800,000,000
$1,200,000,000
$1,600,000,000
$2,000,000,000
$2,400,000,000
$2,800,000,000
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CITY OF NEW HOPE ECONOMIC DEVELOPMENT REPORT
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MEDIAN HOUSEHOLD VALUES
2018 2019 2020 2021 2022
Median
Household Value $229,000 $244,000 $257,000 $275,000 $325,000
Percent change 7.51%6.55%5.33%7.00%18.18%
HOUSEHOLD VALUE
2018 2019 2020 2021 2022
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000