010824 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, January 8, 2024
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Michael Isenberg
Commissioner Jonathan London
1. Call to order – EDA Meeting of January 8, 2024
2. Roll call
3. Approval of Minutes:
• December 11, 2023
4. Resolution appointing officers to the Economic Development Authority for the City
of New Hope
5. Resolution approving extension of deadline for closing on sale of property to Great
Buy Homes, Inc. at 5802 Boone Avenue North (improvement project no. 1088)
6. Adjournment
EDA Meeting
Page 1 December 11, 2023
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes December 11, 2023
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:23 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
Tim Hoyt, Director of Police
Rich Johnson, Director of HR/Admin. Services
Valerie Leone, City Clerk
Susan Rader, Director of Parks and Recreation
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 London,
to approve the minutes of September 11, 2023. All present voted in favor. Motion
carried.
2024 HRA LEVY
Item 4
President Hemken introduced for discussion EDA Item 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 2024.
Mr. Reece Bertholf, executive director, stated the resolution approves the 2024
HRA levy of $459,743 to support the scattered site housing program and other
redevelopment efforts. He explained the need to adopt the HRA levy separate
from the city’s tax levy.
Commissioner London inquired of the number of scattered site properties
planned for year 2024.
Mr. Reece Bertholf, executive director, and Mr. Jeff Sargent, director of community
development, reported that staff continuously explores opportunities for the
housing program while adhering to the program guidelines and budget.
RESOLUTION 2023‐12
Item 4
Commissioner Isenberg introduced the following resolution and moved its
adoption “RESOLUTION AUTHORIZING THE FINAL HRA LEVY
PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION
6 AND APPROVAL OF A FINAL BUDGET FOR FISCAL YEAR 2024.” The
motion for the adoption of the foregoing resolution was seconded by
EDA Meeting
Page 2 December 11, 2023
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
London, to adjourn the meeting. All present voted in favor. Motion carried. The
New Hope EDA adjourned at 8:27 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\City Manager\2024\EDA officer appts\EDA 4 RFA officer appt 1.8.24.docx
Request for Action
January 8, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: City Manager
By: Valerie Leone, City Clerk‐Treas.
Agenda Title
Resolution appointing officers to the Economic Development Authority for the City of New Hope
Requested Action
Staff requests that the EDA adopt a resolution appointing officers to the EDA.
Background
The New Hope Economic Development Authority was established in 1989. EDA Resolution 89‐01 and bylaws
were adopted on March 27, 1989.
Members of the City Council serves as EDA Commissioners with terms coinciding with Council terms.
Minnesota Statute §469.096, Subd. 2 and section 2.1 of the EDA bylaws require the election of officers on an
annual basis. The EDA is asked to appoint persons to the offices of president, vice president, treasurer,
secretary, assistant treasurer, executive director and clerk.
Staff proposes the following appointments:
Office Name City Position
President Kathi Hemken Mayor
Vice President John Elder Mayor pro tem
Treasurer John Elder Mayor pro tem
Secretary Reece Bertholf City Manager
Assistant Treasurer Reece Bertholf City Manager
Executive Director Reece Bertholf City Manager
Clerk Valerie Leone City Clerk‐Treas.
Attachment
EDA Resolution
EDA Bylaws
Minn. Statute §469.096
Agenda Section
EDA
Item Number
4
EDA Resolution No. 2024 ‐ __
Resolution Appointing Officers
to the Economic Development Authority for the
City of New Hope
WHEREAS, the Economic Development Authority for the City of New Hope was established on
March 27, 1989; and
WHEREAS, it is necessary to appoint officers in accordance with Minnesota Statute §469.092,
Subd. 2, and the EDA bylaws; and
WHEREAS, the officers consist of a president, vice president, treasurer, secretary, assistant
treasurer, executive director and clerk.
NOW, THEREFORE, BE IT RESOLVED that the officers of the Economic Development Authority
are appointed as follows:
President Kathi Hemken
Vice President John Elder
Treasurer John Elder
Secretary Reece Bertholf
Assistant Treasurer Reece Bertholf
Executive Director Reece Bertholf
Clerk Valerie Leone
Adopted by the New Hope Economic Development Authority, Hennepin County, Minnesota, this
8th day of January, 2024.
_________________________
President
Attest: _______________________
Executive Director
I:\RFA\COMM DEV\2024\EDA\5802 Boone Ave N\5802 Boone Ave N Closing Extension Request 01‐08‐24.docx
Request for Action
January 8, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Community Development
By: Jeff Alger, Community Development Specialist;
Jeff Sargent, Director of Community Development
Agenda Title
Resolution approving extension of deadline for closing on sale of property to Great Buy Homes, Inc. at 5802
Boone Avenue North (improvement project no. 1088)
Requested Action
Staff requests that the Economic Development Authority approve a resolution extending the deadline to April
1, 2024, for the sale of the scattered site lot at 5802 Boone Avenue North to Great Buy Homes. The address of
the property is in the process of being changed to 5692 Boone Place North.
Policy/Past Practice
The Economic Development Authority has renegotiated the terms of development contracts related to scattered
site properties in the past. The party requesting the extension has been required to pay attorney fees in the past.
Background
The Economic Development Authority (EDA) approved the sale of the scattered site lot at 5802 Boone Avenue
North (5692 Boone Place North) on August 28, 2023. The deadline for closing on the sale of the lot was
December 26, 2023. After closing was scheduled, Great Buy Homes notified city staff that “lenders have
changed requirements and criteria, specifically in the new construction funding quickly and without warning,”
and requested that the closing deadline be extended to April 1, 2024. Great Buy Homes currently owns three
scattered site lots in New Hope and has constructed and sold an additional eight homes in the city since 2017.
When the lot at 5802 Boone Avenue North was marketed to builders last summer, only the proposal from Great
Buy Homes was submitted. Costs involved with approving the extension would include attorney’s fees for
amending the development contract and an estimated $260 in property taxes. As it has in the past, the EDA
would have the option of requiring Great Buy Homes to pay for attorney fees associated with amending the
development agreement.
Funding
Approximately $260 in additional holding costs would be funded through the EDA budget.
Recommendation
Staff recommends that the EDA approve a resolution extending the deadline to April 1, 2024, for the sale of the
scattered site lot at 5802 Boone Avenue North (5692 Boone Place North) to Great Buy Homes and require that
Great Buy Homes be responsible for paying attorney fees associated with amending the development
agreement.
Attachments
Resolution
Amendment to Purchase and Redevelopment Agreement
Request from Great Buy Homes for extension
Agenda Section
EDA
Item Number
5
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 24-___
RESOLUTION APPROVING EXTENSION OF DEADLINE FOR
CLOSING ON SALE OF PROPERTY TO GREAT BUY HOMES, INC.
AT 5802 BOONE AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1088)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope (“EDA”) as follows:
WHEREAS, the EDA entered into a Purchase and Redevelopment Agreement with
Great Buy Homes, Inc. (“Great Buy Homes”) for the sale of real property located at 5802 Boone
Avenue North, New Hope, MN, P.I.D. 06-118-21-42-0028 and legally described on the attached
Exhibit A (“Property”) dated August 28, 2023;
WHEREAS, the Purchase and Redevelopment Agreement provides for Closing on or
before December 26, 2023;
WHEREAS, Great Buy Homes has requested an extension of Closing until April 1, 2024
due to financing issues;
WHEREAS, it is in the best interest of the EDA to amend the Construction and
Redevelopment Agreement to grant Great Buy Homes’ request for an extension for Closing in
order for Great Buy Homes to obtain the necessary financing for the acquisition;
WHEREAS, extending the Closing date to enable a successful Closing and the
construction of a new home will further the goals of the City’s scattered site housing program
and policy; and
WHEREAS, the City staff is hereby seeking approval from the EDA of the amendment
to the Purchase and Redevelopment Agreement and the corresponding revisions to deadlines in
the Restrictive Covenant and Assessment Agreement which will all be tied to the Date of
Closing.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That the amendments to the Purchase and Redevelopment Agreement, between
the EDA and Great Buy Homes, as set forth in the Amendments attached hereto
as Exhibit A, are approved, it being in the best interest of the EDA to assist Great
Buy Homes in the successful redevelopment and construction of a single-family
home on the Property in accordance with the City’s scattered site housing
program and policy.
3. The President, Executive Director and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable.
Dated the 8th day of January, 2024.
____________________________________
Kathi Hemken, President
Attest: __________________________
Reece Bertholf, Executive Director
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11446 5802 Boone Ave N\Resolution Approving Extension regarding sale to Great Buy
Homes, Inc..docx
AMENDMENT TO PURCHASE AND REDEVELOPMENT AGREEMENT
5802 Boone Ave. N.
THIS AMENDMENT TO PURCHASE AND REDEVELOPMENT AGREEMENT
(“Amendment”) is effective the ____ day of January, 2024, by and between the Economic
Development Authority in and for the City of New Hope, a public body corporate and politic
created pursuant to the laws of the State of Minnesota (“EDA”) and Great Buy Homes, Inc., a
Minnesota corporation (“Great Buy Homes”) (EDA and Great Buy Homes sometimes referred to
as the “Parties”).
RECITALS:
A. The Parties (through documentation hereinafter recited) are parties to that certain
Purchase and Redevelopment Agreement dated August 28, 2023 (“Purchase Agreement”) for the
sale from EDA to Great Buy Homes of certain real property located at 5802 Boone Avenue North,
New Hope and legally described on the attached Exhibit A (“Property”).
B. The Purchase Agreement is currently in full force and effect according to its terms
and conditions and the Parties have agreed to amend the Purchase Agreement to extend the Date
of Closing from “on or before December 26, 2023” to “on or before April 1, 2024.”
C. The EDA and Great Buy Homes are mutually desirous of amending the Purchase
Agreement as more fully set forth herein.
NOW, THEREFORE, for $1.00, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by the Parties, the EDA and Great Buy Homes
agree as follows:
1. Adoption by Reference of Recitals. The Recitals above, are incorporated herein
by reference, and constitute a material part of this Amendment between the Parties.
2. Amendment of Paragraph 6 of the Purchase Agreement - Closing. Paragraph
6 a. of the Purchase Agreement is amended to delete “December 26, 2023” and
replace it with “April 1, 2024.”
3. The Restrictive Covenants and the Assessment Agreement attached as Exhibits C
and D, respectively to the Purchase Agreement will both be amended prior to
Closing to reflect the actual Closing date and the associated change in deadlines.
4. Representations, Warranties and Covenants. The EDA and Great Buy Homes
represent, warrant and covenant as follows:
a. With the exception of the modifications recited above and as specified herein,
the Purchase Agreement has not been changed, altered, modified or amended
in any way prior to the date hereof.
b. As modified by this Amendment, the Purchase Agreement constitutes a legal,
valid and binding obligation of Great Buy Homes enforceable by the EDA in
accordance with its terms.
5. EDA Costs. Great Buy Homes shall pay contemporaneous with the execution of
this Amendment the EDA’s costs incurred in connection with this Amendment including without
limitation attorney’s fees.
6. Release of EDA. Great Buy Homes releases and forever discharges the EDA, and
the EDA’s past and present, representatives, successors and assigns of and from any and all claims,
demands, obligations, actions or causes of action, at law or in equity whether arising by contract,
statute, common law or otherwise both direct and indirect, known or unknown of whatsoever kind
or nature arising out of or by reason of or in connection with the Purchase Agreement, this
Amendment or any acts omissions or conduct occurring on or before the effective date of this
Amendment.
IN WITNESS WHEREOF, the Parties have executed this Amendment effective the date
first above written.
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: _______________________________
Kathi Hemken
Its: President
Dated: January ____, 2024
By: _______________________________
Reece Bertholf
Its: Executive Director
Dated: January ____, 2024
GREAT BUY HOMES, INC.
By:
________________________________
Glenn Hammer
Its: President
Dated: January ____, 2024
STATE OF MINNESOTA
COUNTY OF HENNEPIN
}ss.
The foregoing instrument was acknowledged before me this ___ day of January, 2024, by
Kathi Hemken and Reece Bertholf, the President and Executive Director of the Economic
Development Authority in and for the City of New Hope, a public body corporate and politic
created pursuant to the laws of the State of Minnesota.
(Notary Public Seal)
_______________________________________
Notary Public
STATE OF MINNESOTA } ss.
COUNTY OF HENNEPIN____________
The foregoing instrument was acknowledged before me this ____ day of January, 2024,
by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on
behalf of said corporation.
(Notary Public Seal)
____________________________________
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
Exhibit A
Legal Description
That part of Lot 1, lying South of the following described line: Commencing at a point
on the Westerly line of said Lot 1, distant 219.75 feet Northeasterly from the Southwest corner of
said Lot 1, thence Easterly to a point on the East line of said Lot 1, distant 246.23 feet North of
the Southeast corner of said Lot 1, and there terminating, except that part of said Lot lying South
of a line drawn parallel to the Southerly line of said lot from a point on the Westerly line of said
lot distant 125 feet Northerly of the Southwesterly corner of said lot and extending Easterly to
the Easterly line of said Lot, Block 2, Meadow Lake Terrace, Hennepin County, Minnesota (the
“Property”).
Registered Torrens Property: Certificate of Title No. 1560532
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11446 5802 Boone Ave N\Amendment to Purchase and Redevelopment Agreement - 5802 Boone Ave N.docx
1
Jeff Alger
From:GLENN HAMMER Owner <glennhammer@q.com>
Sent:Wednesday, December 20, 2023 3:21 AM
To:Jeff Alger
Subject:Requesting Extension for 5802 Boone Av lot purchase
Given the market slow down, lenders have changed requirements and criteria, specifically in the new construction
funding quickly and without warning. We were notified of changes their board or underwriters were making, and terms
that went along with that, and as a result we need an extension on the lot. I am asking for the lot purchase be moved
out, for on or before April 1st.
I am also working with some other lenders to have more flexibility in the future. Doing this will help to offset things, like
this current market slow down, that will affect up coming years.
Thanks,
Glenn Hammer