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032612 EDACITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes March 26, 2012 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 8:56 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Daniel Stauner, Commissioner Staff Present: Kirk McDonald, City Manager Roger Axel, Building Official Curtis Jacobsen, Director of Community Development Guy Johnson, Director of Public Works Eve Lomaistro, Human Resources Coordinator Chris Long, City Engineer Steve Sondrall, City Attorney Eric Weiss, Community Development Assistant APPROVE MINUTES Motion was made by Commissioner Lammle, seconded by Commissioner Hoffe, to approve the Regular Meeting Minutes of March 12, 2012. All present voted in favor. Motion carried. IMP. PROJECT 893 President Hemken introduced for discussion Item 4, Discussion regarding the Item 4 city Building Official’s report on the Kmart at 4300 Xylon Avenue North and directing staff in the next steps (project no. 893). Mr. Curtis Jacobsen, director of community development, acknowledged the presence of Roger Axel, building official, who can answer questions regarding the report. Mr. Jacobsen stated generally the building is in the condition one would expect for a 40-year old property. Commissioner Stauner expressed concern regarding the mention of PCBs that were on the site or the possibility of contamination which can be expensive to clean up. Mr. Roger Axel, building official, explained that his statement in the report is based upon the MPCA report stating the capacitor was never installed. Mayor Hemken asked if the underground storage tank was removed. Mr. Axel stated there was a release in the early 90s and remediation and tank removal was addressed, and a site closure letter was issued in 1995. Discussion ensued regarding the automotive repair business and the EDA Meeting Page 1March 26, 2012 possibility of soil contamination. Mr. Axel stated the ESA (Phase 1 Environmental Site Assessment Reports) completed by LandAmerica Assessment Corporation indicated that when the hydraulic lifts were removed by the former occupant there was no soil testing done but the quantity of hydraulic fluid used was small and not expected to represent a significant environmental concern. He noted the current tenant is using surface lifts (no buried lifts). He reported there is evidence of automotive fluid spills but soil contamination is unknown. Mr. Sondrall stated any core samples would need to be taken by March 30. The EDA was advised that the visual inspection by the building official refers to the Kmart (and Big Lots) structure only. The building official was not asked to inspect the Wells Fargo ATM site. Regarding asbestos, Mr. Axel stated based on the age of the building there is the likelihood of asbestos-containing materials (ACMs). He stated there are ACMs in the floor tiles and mastic. He stated he was advised there were no asbestos materials on pipe insulation. Commissioner Stauner noted the floor tile removal will require asbestos abatement. Mr. Axel stated the condition of the tile will make it less costly to remove than if the tiles were in a deteriorated friable condition. Discussion ensued regarding the underground storage tank. It was noted that different standards apply (soil contamination) for housing redevelopment compared to a retail redevelopment use. The EDA agreed that the report did not reveal anything of major concern, and there is no need to terminate the acquisition proceedings. Mr. Jacobsen noted he distributed copies of the Reliance Letter for the Phase I Environmental Site Assessment for 4200 Xylon Avenue North. President Hemken thanked Mr. Axel for conducting the inspection and providing the report. IMP. PROJECT 911 President Hemken introduced for discussion Item 5, Resolution authorizing Item 5 staff and the city attorney to draft/negotiate a purchase agreement for the acquisition of the Winnetka Learning Center and the surrounding school district property at 7940 55 Avenue North (project no. 911). th Mr. Curtis Jacobsen, director of community development, stated in follow up to the March 19 work session staff is asking the EDA to authorize negotiations for the property at 7940 55 Avenue North. He noted the school district may th want to stay in the building longer than originally expected. Commissioner Elder suggested exploring the use of the gymnasiums at the Winnetka Learning Center for the gymnastics program while the district remains in the building. EDA Meeting Page 2March 26, 2012 Mr. Jacobsen stated the director of parks and recreation has expressed concern regarding moving to a temporary location. Mr. Jacobsen noted the heating bill for the Winnetka Learning Center for one month exceeds what the program currently pays for an entire year at Sandburg. He stated the ground level gymnasium only has a 12-foot ceiling height but the second gymnasium has a 20-foot ceiling height. Elder stated the gymnastics program must be out of Sandburg by January of 2013, and the use of Winnetka Learning Center would allow the city another year to seek a permanent facility for the gymnastics program. Commissioner Stauner expressed his opposition to the property acquisition as it would divert resources (financial and staff) from the city center project. He noted the likelihood of the property being vacant for a decade until the housing market improves. Mayor Hemken spoke in favor of the acquisition. RESOLUTION 2012-02 Commissioner Lammle introduced the following resolution and moved its Item 5 adoption “RESOLUTION AUTHORIZING STAFF AND THE CITY ATTORNEY TO DRAFT/NEGOTIATE A PURCHASE AGREEMENT FOR THE ACQUISITION OF THE WINNETKA LEARNING CENTER AND THE SURROUNDING SCHOOL DISTRICT PROPERTY AT 7940 55 TH AVENUE NORTH (PROJECT NO. 911)”. 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, Lammle; and the following voted against the same: Stauner; 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 Lammle, seconded by Commissioner Elder, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:24 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 3March 26, 2012