012224 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, January 22, 2024
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Michael Isenberg
Commissioner Jonathan London
1. Call to order – EDA Meeting of January 22, 2024
2. Roll call
3. Approval of Minutes:
January 8, 2024
4. 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)
5. Motion approving three‐month extension of agreement with Center for Energy and
Environment to perform Home Energy Squad visits in the city of New Hope
6. Adjournment
EDA Meeting
Page 1 January 8, 2024
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes January 8, 2024
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:43 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
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 London, seconded by Commissioner
Isenberg, to approve the minutes of December 11, 2023. All present voted in
favor. Motion carried.
APPOINTMENT OF
OFFICERS
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution appointing
officers to the Economic Development Authority for the City of New Hope.
Mr. Reece Bertholf, city manager, stated the EDA’s bylaws require the annual
appointment of officers. He stated the resolution appoints Kathi Hemken as
president, John Elder as vice president and treasurer, Reece Bertholf as secretary,
assistant treasurer, and executive director, and Valerie Leone as Clerk.
RESOLUTION 2024‐01
Item 4
Commissioner Isenberg introduced the following resolution and moved its
adoption “RESOLUTION APPOINTING OFFICERS TO THE ECONOMIC
DEVELOPMENT AUTHORITY FOR THE CITY OF NEW HOPE.” 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.
5802 BOONE AVE N
(IMPROVEMENT
PROJECT NO. 1088)
President Hemken introduced for discussion EDA Item 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).
EDA Meeting
Page 2 January 8, 2024
Item 5 Mr. Jeff Alger, community development assistant, explained the EDA approved
the sale of the scattered site lot at 5802 Boone Avenue North last August. He
reported the deadline for closing on the sale of the lot was December 26, 2023. The
builder has asked that the deadline be extended to April 1, 2024. Mr. Alger stated
the only financial impact to the EDA is an estimated amount of $260 in property
taxes. He stated staff recommends extending the deadline as requested by Great
Buy Homes and to require them to be responsible for attorney fees related to
amending the development agreement.
Commssioner Elder expressed disappointment that a representative of Great Buy
Homes was not present. He recommended postponing action to a future meeting.
Commissioner London recommended denying the request and canceling the sale
and directing staff to seek other developers and to optimize the property.
Ms. Stacy Woods, city attorney, pointed out the EDA would need to take action to
cancel the purchase agreement with Great Buy Homes.
MOTION
Item 5
Motion was made by Commissioner Elder, seconded by Commissioner Hoffe, to
postpone action to January 22, 2024, to allow further discussion at the January
16, 2024, work session. Voted in favor thereof: Hemken, Elder, Hoffe, Isenberg;
and the following voted against the same: London; Abstained: None; Absent:
None. Motion carried.
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 7:53 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/EDA/5802 Boone Ave N/5802 Boone Ave N Closing Extension Request 01‐22‐24.docx
Request for Action
January 22, 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 consider approving 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 request was presented at the January 8, 2024, Economic Development Authority meeting and was tabled
for further discussion at the January 16, 2024, work session.
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 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. The request was presented at the January 8, 2024, EDA meeting. The
EDA voted 4‐1 to table the item for further discussion. The request was discussed at the January 16, 2024, work
session at which time staff was directed to present the request at the next EDA meeting.
For more information on the request, proposal, and process for canceling a purchase agreement, please refer to
the staff report and attachments included in the January 16, 2024, work session packet.
Funding
Scattered site housing projects are funded through the EDA budget.
Recommendation
Staff recommends that the EDA consider approving 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 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
4
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 22nd 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
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/EDA/Home Energy Squad Contract/Home Energy Visits Contract Extension 01‐22‐
24.docx
Request for Action
January 22, 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
Motion approving three‐month extension of agreement with Center for Energy and Environment to perform
Home Energy Squad visits in the city of New Hope
Requested Action
Staff requests that the Economic Development Authority approve a motion approving a three‐month extension
of an agreement with the Center for Energy and Environment to perform Home Energy Squad visits in the city
of New Hope.
Policy/Past Practice
It is a practice of the Economic Development Authority to review and approve housing programs that will be
offered within the city.
Background
Since 2013, the city has partnered with the Center for Energy and Environment (CEE) to help residents save
energy and money on utility bills through Home Energy Squad visits. The CEEʹs team of energy consultants
visit homes in New Hope, evaluate energy savings opportunities, and install energy‐efficient materials. The
city buys down the cost of Energy Planner Visits to assist with upgrades such as the installation of energy‐
saving materials, including high‐efficiency showerheads, faucet aerators, door weather stripping,
programmable thermostats, and LED light bulbs. Other services include a blower door test to check for air
leaks, visual inspection of insulation levels with use of infrared camera, heating system and hot water heater
combustion safety tests, and a report to the homeowner on recommended energy upgrades. The program is
provided by Xcel Energy and CenterPoint Energy and delivered by CEE. The city pays $50, and the resident
pays $50 for the visit. Approximately 35 visits are completed each year.
The city’s contract with CEE expired on December 31, 2023. With substantial cost increases in delivering the
program, CenterPoint and Xcel have sent out a Request for Proposals. CEE has submitted a proposal and
interviews and discussions about programmatic details are underway. All expired partnership agreements are
currently on hold; however, residents can still schedule Home Energy Squad visits. CEE staff recommended
that the city approve a three‐month extension to the existing contract to allow the utility companies time to
resolve the outstanding contract issue. Once resolved, a possible long‐term extension of the contract would be
presented at a future EDA meeting. Per CEE staff and the city attorney, the contract that was in place from 2021
to 2023 “may be extended upon mutual agreement by the parties.”
Funding
Funding for the program would come from the EDA budget.
Agenda Section
EDA
Item Number
5
Request for Action, Page 2
Recommendation
Staff recommends that the Economic Development Authority approve a motion approving a three‐month
extension of an agreement with the CEE to perform Home Energy Squad visits in the city of New Hope.
Discounted visits would continue to be offered through April 22, 2024, and a potential long‐term extension of
the contract would be presented at a future EDA meeting
Attachments
Agreement
Email from Center for Energy and Environment
Certificate Of Completion
Envelope Id: D6FF8140A6D6422580D7C2B4210922DD Status: Completed
Subject: Please DocuSign: HES Contract 2021-2023 #xxxx - Interim.pdf
Source Envelope:
Document Pages: 2 Signatures: 1 Envelope Originator:
Certificate Pages: 1 Initials: 0 Ryan Ellis
AutoNav: Disabled
EnvelopeId Stamping: Disabled
Time Zone: (UTC-06:00) Central Time (US & Canada)
212 3rd Avenue North
Minneapolis, MN 55401
rellis@mncee.org
IP Address: 174.141.205.187
Record Tracking
Status: Original
1/12/2021 10:03:22 AM
Holder: Ryan Ellis
rellis@mncee.org
Location: DocuSign
Signer Events Signature Timestamp
Ryan Ellis
rellis@mncee.org
Contracts Manager
Center for Energy and Environment
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 174.141.205.187
Sent: 1/12/2021 10:03:33 AM
Viewed: 1/12/2021 10:03:39 AM
Signed: 1/12/2021 10:04:03 AM
Freeform Signing
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 1/12/2021 10:03:33 AM
Certified Delivered Security Checked 1/12/2021 10:03:39 AM
Signing Complete Security Checked 1/12/2021 10:04:03 AM
Completed Security Checked 1/12/2021 10:04:03 AM
Payment Events Status Timestamps
1
Jeff Alger
From:Stacy Boots Camp <sbootscamp@mncee.org>
Sent:Tuesday, January 2, 2024 12:16 PM
To:Stacy Boots Camp
Subject:Re: City Home Energy Squad partnerships in 2024 and beyond
Greetings and Happy New Year valued city partners,
I was hoping to have a solid update to you before the end of 2023 regarding 2024 Home Energy Squad
partnerships. Discussions are still underway with the utilities about programmatic details, so sending out formal
partnership agreements remains on hold. Please know that your residents are still getting scheduled for
discounted visits into early 2024 and there is no change to their customer experience.
I expect to have more information to share with you all in the next week or so. That being said, if you have
pressing meetings in the first week or two of January and a draft agreement would be helpful and sufficient for
now to share with a board or council while details are still being ironed out, I'd be happy to send that.
Thanks for your patience and partnership,
Stacy
Stacy Boots Camp | she/her
Outreach Manager
Center for Energy and Environment
612-244-2429 (office/fax)
www.mncee.org
We're hiring!
From: Stacy Boots Camp <sbootscamp@mncee.org>
Sent: Friday, December 1, 2023 11:36 AM
To: Stacy Boots Camp <sbootscamp@mncee.org>
Subject: City Home Energy Squad partnerships in 2024 and beyond
Hello valued HES City Partners,
Several cities have reached out to inquire about partnership agreements for 2024. I was hoping to have had
them out to you all, and be gearing up for next year, but the timeline for the official utility decision on the
implementor for Home Energy Squad for the next three years got pushed way out for reasons beyond CEE's
control.
For now, what I can share with you is that with fairly significant cost increases in delivering Home Energy Squad
over the past few years (pandemic, inflation) CenterPoint and Xcel had to put the program out for RFP. CEE
responded, of course, and interviews with vendors are happening this week and next. We are hopeful that we'll
be selected to continue delivering Home Energy Squad in the years to come as we have for 14 years. Until
decisions are made and we have further discussions with both utilities, we won't be able to sign any
partnership agreements for 2024 but know that I have drafts and will be ready to get those out to you all as
2
soon as possible. I don't foresee any major changes in the agreements, however cities with full buydowns for
<80% AMI will have that offering removed as <80%AMI is to become the new threshold for free visits fully paid
for by the utilities.
I hope to have more information to share with you all in the next week or two. If you need a draft copy before
then, I can certainly send that over for now.
Thanks for your patience and partnership,
Stacy
Stacy Boots Camp | she/her
Outreach Manager
Center for Energy and Environment
612-244-2429 (office/fax)
www.mncee.org
We're hiring!