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
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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).
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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
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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.
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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
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