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1994 EDAApproved EDA Minutes Meeting #1 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 14, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 513 Item 4 President Erickson called the meeting of the Economic Development Authority to order at 8:45 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Motion was made by Commissioner Williamson, seconded by Commissioner Enck, to approve the EDA minutes of November 22, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Directing and Authorizing President and Executive Director to Execute Loan/Grant Documents for Community Center Expansion Project at Broadway Village Apartments (Improvement Project No. 513). Councilmember Enck asked if the project was initiated due to the corner lot at 62nd and West Broadway. City Manager Donahue stated there were two separate issues: 1) the City wanted something done with that corner and asked Lang Nelson if they would consider including that property as part of the Anthony James project; and 2) Lang Nelson was interested in expanding their Broadway Village apartments and asked if the City would participate by developing a community center for the complex which would be accessible to the senior community at large for use. Mr. Donahue stated that the City has not been able to tie the two projects together and that was not the City's intent. Mr. Donahue stated that the City will not make one project dependent upon the other. He said Super America Group, the owners of the corner property, have indicated that they wish to proceed with development at 6144 West Broadway. In regard to the Broadway Village Apartment complex expansion, it significantly upgrades that property and creates a market value that will be stabilized, it adds value to the City, and it benefits the complex and the residents of that property. Mayor Erickson indicated his support for upgrading the area. Mr. McDonald said the total cost of the project is $200,000 for the community center and $85,000 for street lighting for a total of $285,000. Mr. McDonald stated that the loan/grant proposal requires the EDA and the land developer to each fund 50% of the development costs for the community center. The EDA cost contribution would not exceed $142,500 and would be funded out of excess tax increment revenues for that TIF district. The developer has agreed to provide the EDA with a non- exclusive license agreement to utilize the community center for 24 times a year over a 20-year period for appropriate public functions. New Hope EDA Page 1 February 14, 1994 EDA RESOLUTION 94-01 Item 4 ADJOURNMENT Councilmember Enck commented that this is only possible due to the available TIF funds, Councilmember Wehling inquired 'as to the capacity of the community room, Mr, Paul Brewer stated that it will hold 68 people, Mr, Brewer indicated he would like the City to handle the requests for use of the community center as a control factor, Mayor Erickson stated this could be handled through the Park and Recreation Department, Mr, Brewer stated that his only concern is that it does not interfere with their residents using the building and that is the reason for the 24 meeting/year stipulation (not exceeding two per month) in the agreement, He said that he anticipates that evening meetings would not be a problem as the residents use the community room mostly in the daytime hours, Commissioner Wehling introduced the following resolution and moved its adoption: "RESOLUTION DIRECTING AND AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE LOAN/GRANT DOCUMENTS FOR COMMUNITY CENTER EXPANSION PROJECT AT BROADWAY VILLAGE APARTMENTS (IMPROVEMENT PROJECT NO. 513)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Williamson and upon vote being taken thereon, the following voted in favor: Erickson, Enck, Otten, Wehling, and Williamson; and the following voted against: None; Absent: None; whereupon the resolution was duly passed and adooted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:10 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 February 14, 1994 Approved EDA Minutes Meeting//2 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 28, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 510 Item 4 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 8:51 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of February 14, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving Multi-Family Housing Policy Loan for New Hope Apartments, 7200-7280 43rd Avenue North (Improvement Project No. 510). Mr. Dan Donahue, City Manager, explained that last fall the EDA established a policy for providing rehabilitation loans to owners of multi- family housing complexes in the City in order to maintain high standards, retain property value, and retain good tenants. Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, stated the policy was developed with the assistance Gary Stout, of Public-Private Ventures, Inc. He noted that prior to the development of the policy the City was approached by the owners of New Hope Apartments for rehab assistance. Mr. McDonald explained that loan documents for the four-building complex at 7200-7260 43rd Avenue North have been developed consistent with the established policy. The total project cost for the rehabilitation is $194,700. The property owners will provide 50 percent of the project cost under the proposal, with the balance of the funds in the form of an EDA loan. The City would approve all construction contracts for the various parts of the project and would advance the loan funds only after the items of work have been completed and the property owner has already paid their half to the contractor. The project involves rehabilitation of basic needs for the complex such as roof replacement, window replacement, installation of a security system, asphalt patching in the parking lot, removal of a concrete surface from a former swimming pool, interior and exterior painting, furnace upgrades, plumbing repairs, and smoke detectors. Mr. McDonald stated Mr. Stout has performed an independent objective financial analysis of the New Hope Apartments financial statements and it is his opinion that private funds are not reasonably available to fund the entire project. Commissioner Enck questioned the soure of EDA funds. Mr. Donahue stated that each year the city may take 10 percent of revenues generated by a tax increment district for the City's administrative February 28, 1994 EDA RESOLUTION 94-02 Item 4 New Hope EDA Page 2 costs. Those funds go into the EDA account which has been accumulating over the years and is now approximately $600,000. Commissioner Enck inquired regarding the property value and increased taxes. Mr. Donahue stated these are maintenance items so he does not believe the project will result in a substantial increase in market value. Mr. Gary Stout, Public-Private Ventures, was recognized. He indicated the value of the building is less than its first mortgage. He stated the market value has been declining and with the improvements he feels the value will now stabilize and slowly increase over time. He stated the building has been losing substantial sums in recent years and maintenance has been deferred. With the improvements and reduction in utility costs due to window replacements and insulation, the losses should cease. The loan documents also specify that rents cannot be raised higher than the consumer price index rate so that the City will not be faced with upset tenants. The loan is proposed to be both a second mortgage and in the first two years personally guaranteed. It will be a zero percent loan to be repaid at the rate of I percent per month with no interest (if no defaults) and would be repaid after 8-1/3 years. Mr. Stout explained the repayment risk and the advantages of a providing a loan rather than a grant. President Erickson questioned the bidding process. Mr. Stout pointed out that bids will be required from at least two non- related entities on each item. The bids will be reviewed by city staff and the building official. The City has the right to obtain another bid on any questionable items. Mr. Stout confirmed that both the taxes and mortgage are current. Commissioner Otten questioned if the owner was restricted from selling the building. Mr. Stout stated the owner can sell it at any time; however, if this occurs the EDA loan must be repaid immediately. The EDA and City Manager extended their appreciation to Kirk McDonald, Steve Sondrall, and Mr. Stout for the work involved with this project. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING MULTI-FAMILY HOUSING POLICY LOAN FOR NEW HOPE APARTMENTS, 7200-7260 43RD AVENUE NORTH (IMPROVEMENT PROJECT NO. 510)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote being taken thereon, the following voted in favor: Erickson, Enck, Otten, Wehling, Williamson; and the following voted against: None; Absent: None; whereupon the resolution was duly passed and adooted, signed by the president which was attested to by the executive director. February 28, 1994 ADJOURNMENT Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:11 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 February 28, 1994 Approved EDA Minutes Meeting #3 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 April 11, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES PROJECT 467 Item 4 MCPP Item 5 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 10:07 p.m. Present: Erickson, Enck, Otten, Williamson, Wehiing Staff Present: Donahue, Hanson, Sondrall, McDonald, Bellefuil, Leone Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of February 28, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Request for Interest Rate Reduction on EDA Loan by Autohaus of Minneapolis, Inc. and Review of Addendum to Development Contract (Improvement Project No. 467). Mr. Dan Donahue, City Manager, indicated that Autohaus is requesting consideration for an interest rate reduction on the EDA loan made in 1991 for acquisition of the former Animal Hospital site and for development improvements to the property. The original loan was $187,500 at an interest rate of 9%. Autohaus is requesting that the interest rate be reduced to 6.5%. President Erickson recommended a 7% interest rate. Commission Enck suggested a variable interest rate dependent upon the prime rate. The EDA directed staff to prepare variable rate options for discussion at the April 25th meeting. President Erickson introduced for discussion Item 5, Resolution Approving Submission of the Minnesota City Participation Program (MCPP) Application to the Minnesota Housing Finance Agency (MHFA). The MCPP is a program through the MHFA in which the MHFA is able to sell mortgage revenue bonds on behalf of participating cities to meet locally-identified housing needs. The proceeds from the bonds provide below-market interest rate mortgage loans for Iow and moderate income first-time homebuyers. This resource is available to cities throughout the state. This year the local housing pool for mortgage revenue bonds is estimated April 11, 1994 EDA RESOLUTION 94-03 Item 5 TIF DISTRICTS Item 6 EDA RESOLUTION 94-O4 Item 6 New Hope EDA Page 2 to be around $43 million. Cities can apply for an allotment of between $250,000 to $4 million. The City of New Hope is applying for $2 million. In order for persons to apply for money through this program they must: a) be a first-time homebuyer; b) occupy the home within 60 days of mortgage closing; c) meet certain household income requirements ($31,744 or less (for a family of four); d) and purchase an existing home for $85,000 or less, or build new for $95,000 or less. The fee for participating in the program is $20 for each $100,000 in allotment provided. Also, an application deposit of 1% of the allocation amount specified in the agreement. The 1% deposit is refunded within a month of the closing of the bond sale. In order to participate in the MCPP, cities must arrange with local lenders to originate mortgage loans under the program. These lenders will be required to enter into a contract with the MHFA as to program and loan origination requirements. Each city applying for the MCPP must have at least one lender. Commissioner Otten introduced the following resolution and moved its adoption: "RESOLUTION APPROVING SUBMISSION OF THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY (MHFA)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Otten, Williamson, Enck, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the President which was attested to by the executive director. President Erickson introduced for discussion Item 6, Resolution Approving the Retaining of Springsted to Perform a Financial Analysis on TIF Districts. The financial analysis is needed to produce an independent outside assessment of the cash flows of the City's six tax increment financing districts. The analysis will be the basis for financial decisions on the use of excess TIF funds to build a community/teen center in the City. Springsted Incorporated has submitted a proposal for a cost not to exceed $4,000. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING THE RETAINING OF SPRINGSTED TO PERFORM A FINANCIAL ANALYSIS ON TIF DISTRICTS." The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Enck, Otten, Williamson, Wehling; and the following voted against the same: None; Absent: None; whereupon the April 11, 1994 ADJOURNMENT resolution was declared duly passed and adopted, signed by the President which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 10:1 1 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 April 11, 1994 Approved EDA Minutes Meeting//4 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 April 25, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 467 Item 4 MOTION Item 4 IMP.-PROJECT 519 Item 5 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:51 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Staff Present: Donahue, Sondrall, Hanson, McDonald, Bellefuil, French, Schuster, Leone Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of April 11, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Request for Interest Rate Reduction on EDA Loan by Autohaus of Minneapolis, Inc. and Review of Addendum to Development Contract (Improvement Project No. 467). There was no representative of Autohaus to give an update on improvements to their property; therefore, the EDA wished to postpone action regarding the request for an interest rate reduction on the Autohaus loan. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to table discussion regarding Autohaus's request for interest rate reduction on EDA Loan until May 9, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Resolution Authorizing Acquisition of 6073 Louisiana Avenue North and Directing Preparation of Purchase Offer to Implement Same (Improvement Project No. 519). The resolution authorizes staff to prepare a purchase agreement and acquire property at 6073 Louisiana Avenue for the City's scattered site housing program, which provides affordable housing ownership opportunities for New Hope residents. Last fall the City Council approved the preliminary plat of Carol James Addition to allow the subdivision of the existing large single-family R-1 lot into two parcels, with the northerly lot retaining the existing single-family home and the southerly lot providing a new vacant building site. The final plat was put on hold due to the fact that the newly created lot does not currently have a sewer/water service and said services would need to be provided from existing utilities in Louisiana Avenue at an estimated cost of $16,598 (estimates from City Engineer). Subsequent to the plat submittal, the City has acquired the adjacent property at 7109 62nd Avenue and is in the process of preparing specifications for the rehabilitation of this property for eventual resale as April 25, 1994 EDA RESOLUTION 94-05 item 5 ADJOURNMENT affordable housing. Staff now desires to split off the south half of the parcel at 7109 62nd Avenue and combine it with the parcel at 6073 Louisiana to create a lot large enough for a possible two-family specialized housing unit which would be sold to New Hope residents. The owner's real estate agent has indicated that the parcel has a value of $24,000 with utilities and the City's appraiser agrees with this value. Staff have preliminarily indicated to the property owner that the City would contribute up to $10,000 to extend utilities to the property. Therefore, staff is requesting authorization to make a purchase offer of $17,402 ($24,000 - $6,598). The City would then assume responsibility for extending utilities to the site and construct affordable housing. The acquisition would be financed entirely with CDBG scattered site housing funds that have been set aside for this purpose. Year XVII scattered site housing funds ($13,800) must be expended by June 1st, and Year XVIII funds ($36,200) must be expended by December 31st, so if the EDA is supportive of this acquisition the staff will move quickly to acquire the site. Councilmember Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING ACQUISITION OF 6073 LOUISIANA AVENUE NORTH AND DIRECTING PREPARATION OF PURCHASE OFFER TO IMPLEMENT SAME". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Otten, Williamson, Enck, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the President which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:53 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 April 25, 1994 Approved EDA Minutes Meeting //5 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 May 9, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 467 Item 4 MOTION President Erickson called the meeting of the Economic Development Authority to order at 10:26 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of April 25, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Request for Interest Rate Reduction on EDA Loan by Autohaus of Minneapolis, Inc. and Review of Addendum to Development Contract (Improvement Project No. 467). Mr. Tom Oestrich, Autohaus, was recognized. Chairman Erickson asked Mr. Oestrich to report on the status of the development improvements on the Autohaus property. Mr. Oestrich reported on the improvements made to date and the fact that Autohaus is $30,000 ahead of its payment schedule. Mr. Daniel Donahue, City Manager, stated the original loan of $187,500 which began in 1991 was at an interest rate of 9 percent. The current prime rate is 6.75 percent. Staff's recommendation is to set the interest rate at one percent above prime rate. For the record, Commissioner Enck reported that he has a car for sale on consignment at Autohaus. Commissioner Enck pointed out that certain improvements (i.e. blacktop) have been made inconsistent with the development contract. He inquired of the date for corrections. Commissioner Enck suggested that the interest rate reduction request be considered separately from the development improvements. He asked staff and Autohaus to report on the development improvements at a future EDA Meeting. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to reduce the interest rate to 1% over prime rate not to exceed 9% and to review it semi-annually. All present voted in favor. Motion carried. New Hope EDA Page 1 May 9, 1994 ADJOURNMENT Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to adjourn the meeting, All present voted in favor. The New Hope EDA adjourned at 10:40 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 May 9, 1994 Approved EDA Minutes Meeting #6 CALL TO ORDER ROLL CALL APPROVE MINUTES MCPP PROGRAM Item 4 MOTION Item 4 ADJOURNMENT CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 May 23, 1994 President Pro tem Enck called the meeting of the Economic Development Authority to order at 7:56 p.m. Present: Absent: Enck, Otten, Williamson, Wehling Erickson Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of May 9, 1994. All present voted in favor. Motion carried. President Pro tem Enck introduced for discussion Item 4, Motion Approving Submission of the Mortgage Revenue Bond Allotment Agreement and the Minnesota City Participation Program Application - Commitment Agreement for Participation in the Minnesota City Participation Program. Mr. Dan Donahue, City Manager, indicated on April 11, 1994, the City Council approved the submission of this application. The City was approved and therefore must sign the commitment agreement. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, to approve the Commitment Agreement for Participation in the Minnesota City Participation Program. All present voted in favor. Motion carried. Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:00 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 1 May 23, 1994 Approved EDA Minutes Meeting #7 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 June 13, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES TAX INCREMENT Item 4 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 7:05 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, Watts, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of May 23, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Presentation by Springsted, Inc. of Cash Flow Analysis Regarding the City's Tax Increment Districts. Mr. Donahue, City Manager, stated the EDA had requested a financial analysis of the City's tax increment districts. The reason for the analysis was to review the funds of the seven districts and determine whether there is sufficient excess increment to be utilized for the development of a community center and also for housing development in the City. Also questioned was whether the increment could fund the maintenance and operations of a community center. An internal analysis was conducted which showed that there was excess funds. An external consultant, Springsted, was retained to review the finances and support staff's findings. Mr. Donahue stated the Council's policy direction to staff was to determine whether financing is feasible and to find revenue sources that did not utilize funds from the general taxes. Commissioner Enck questioned the estimated cost of the center. Mr. Donahue stated the projected construction cost would be approximately 3.5 million dollars with an additional 500 thousand dollars for soft costs. Mr. Bob Thistle, Springsted, Inc., was recognized. He stated the request from Springsted contained three items: 1 ) review and verify the cash flow analyses done by the City; 2) see if the funds on hand would be sufficient to meet the capital needs of the program; and 3) ways to provide funds to operate a facility with the assumption that a general levy will not be used. The cash flow analysis confirmed the numbers prepared by City Staff. Based on today's current obligations and assuming that no additional projects would be initiated, there is approximately 5 million dollars in the fund balance for combined tax increment projects. The fund balance would grow to 18 million dollars by the year 2004. From a cash on hand standpoint, the City is in a positive position. For purposes of this study, June 13, 1994 the projection was to 2004 which is when the last bond issue closes out. Councilmember Williamson questioned the following statement contained in the report: "Current law would require such cash balances to be redistributed once the balance is sufficient to pay the respective debt service and if no additional projects are implemented." Mr. Thistle stated at some time as cash balances accumulate, an auditor or bond counsel will begin to ask whether the City has projects or uses for the funds. If the answer is yes we have projects then the cash can continue to accumulate and be used for the projects. If no projects are identified, the funds must be redistributed between the City, County and School District. He continued by stating based on an estimated cost of approximately $4 million for the community center, there are three primary funding options to finance the construction: 1) cash on hand (pay as you go); 2) 3-year construction bond; 3) 10-year note. He stated the advantage of the pay as you go method is that it is the lowest cost; however, a disadvantage is that it reduces fund balances immediately. The opposite is true for either of the bond issues. He explained the projected fund balances and net interest cost for each scenario: Projected 2004 Ending Fund Balance Current Status $17,896,004 ' PAYG 12,442,841 3-year Bond 12,098,857 I O-year Bond 11,663,387 Net Interest Cost $1,453,163 1,797,147 2,232,617 He noted the most economical method of financing the capital construction project would be the pay as you go method. Mr. Thistle stated based on preliminary numbers prepared by the City, the operating costs shortfall from the proposed community center will be approximately $150,000 per year. Since the traditional approach of raising the local levy to cover such facilities is not a viable option, or at least not the preferred option, Springsted has been asked to identify other funding options for the operation of the proposed new community center. He stated it is clear that the facility will not be self supporting as it would have to charge exorbitant fees to meet the operational cost. The City is allowed to capture up to 10% of the captured tax increment annually to cover administrative and other incidental costs associated with the operation of the tax increment district. The City is currently capturing a full 10% or $161,000 in administrative fees. However, the City would have to obtain another funding source to meet the current usage for the funds. He stated the third approach is that the City could begin a process of redistributing excess tax increment revenues to the various taxing jurisdictions. Based on a $150,000 contribution to the City in the first year, this would still allow building the facility and maintaining a sufficient cash flow balance in the tax increment fund balances. As the dollars are New Hope EDA Page 2 June 13,1994 New Hope EDA Page 3 returned to the various taxing jurisdictions, the City Council could choose to use the $150,000 each~yea¢ to cover the operating cost of the facility. Using pay 1994 tax rates, $150,000 would be distributed to the City; $418,000 redistributed to the School District, and $243,000 redistributed to Hennepin County. He mentioned a proposed law change which could impact the school district's contribution to tax increment revenue. The cost to the state to implement the program may discourage this change. In conclusion, Mr. Thistle stated it is feasible for the City to construct and operate a community center utilizing tax increment revenues for construction and redistributing "excess" tax increment funds to meet the projected annual operating cost deficit. He advised the only caution is that there are other issues to consider such as unknown changing tax laws which may impact the funds and the project. Commissioner Enck questioned whether the net interest cost calculation of 3.5% is on the conservative side. Mr. Thistle agreed that it is probably conservative. Commissioner Enck inquired of the disadvantages of utilizing the tax increment funds. Mr. Thistle stated the major downside is that the City will be redistributing monies that it may have been able to use on a future project. No inflation was built into the projected calculations but based on the flat rate there will be a surplus of $3,707,877 in year 2004. The lowest point of surplus would be year 1996, after the construction of the facility, with a balance of $588,501. Mr. Donahue stated if the projected cost is $4 million, based on the current formula, the City would have a surplus of $928,000. Mr. Thistle noted that at some point in time such as when the districts end, there will be the need to continue operating the facility and it will be back on the tax base and will be treated as a tax levy but may not have any more impact that it is having today. Commissioner Otten questioned other qualifying projects. Mr. Thistle stated there is a substantial number of potential ways to use tax increment such as development districts, redevelopment districts, and housing programs. Mr. Donahue reported that a public hearing is scheduled for July 25, 1994, to modify the tax increment district plan. A work session was scheduled for July 11, 1994, at 6:00 p.m. to discuss the tax increment districts and address funding concerns of the proposed community center. Commissioner Enck asked staff to be prepared to address the process of June 13, 1994 replacement/depreciation as well as repairs for the proposed center. IMP. PROJECT 519 Item 5 President Erickson introduced for discussion Item 5, Resolution Approving Purchase of 6073 Louisiana Avenue North (Improvement Project 519). At its meeting of April 25, 1994, the EDA adopted a resolution authorizing the acquisition the property at 6073 Louisiana and directed staff to proceed with the purchase. The purchase agreement contains a purchase price of $17,402 which will be financed with CDBG scattered site funds. The City will assume responsibility for extending utilities to the site (approximately $16,598) and construction of affordable housing. EDA RESOLUTION 94-06 Item 5 Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING PURCHASE OF 6073 LOUISIANA AVENUE NORTH". The motion for the adoption of the foregoing resolution was seconded by Commissioner Williamson, and upon voted taken thereon; the following voted in favor thereof: Erickson, Otten, Enck, Williamson, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adooted, signed by the president which was attested to by the executive director. IMP. PROJECT 513 Item 6 President Erickson introduced for discussion Item 6, Consideration of Request by Broadway Village for Increased Loan Support for Community Center Project, Improvement Project No. 513. Mr. Donahue stated the EDA previously agreed to support the owner of Broadway Village Apartments to upgrade their property with a community center building. The City agreed to loan them 50% of the development costs by using surplus tax increment funds generated by the nearby Anthony James property with payback concluding in year 2003. He stated the project has encountered problems due to the storm sewer easement running just outside the current building which houses the pool, etc. He stated current city policy does not allow building a structure above a pipe. This necessitates moving the design and building a walkway between the old and new building. The added cost will be approximately $28,000. Mr. Donahue stated the City would like to televise the storm sewer to determine its condition. Staff would like assurance that it has a remaining minimum projected life of 30 years. Commissioner Enck inquired of the responsible party should any storm sewer problems arise which would necessitate removal of the walkway. Mr. Steve Sondrall, City Attorney, stated it would be Broadway Village's responsibility to repair the walkway unless there was contradictory language contained in the easement document. Mr. Paul Brewer Was recognized and stated they were unaware of the easement when the plan was designed. He relayed the options considered: 1 ) moving the storm sewer, 2) obtaining the City's permission New Hope EDA Page 4 June 13,1994 MOTION Item 6 ADJOURNMENT to build on top of the easement, or 3) redesign the building leaving the easement area open by building a walkway. He explained how the buildings will be linked together similar to a skyway. The estimated cost is $28,000. The EDA agreed to postpone any decision until the condition of the pipe is known. Motion by Commissioner Enck, seconded by Commissioner Otten, to table consideration of request by Broadway Village until the June 27, 1994, EDA Meeting. All present voted in favor. Motion carried. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 7:55 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA page 5 June 13, 1994 Approved EDA Minutes Meeting #8 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 June 27, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES LAND TRUST Item 4 MOTION Item 4 IMP. PROJECT 505 Item 5 Motion Item 5 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:57 p.m. Present: Absent: Erickson, Enck, Otten, Williamson, Wehling None Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of June 13, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Establishing the Economic Development Authority as a Neighborhood Land Trust to Act as Authorized by Minn. Stat. § §462A.30 and 462A.31. Commissioner Enck expressed concern that there may be future contamination on the land and it would be the City's responsibility to make improvements on the land. He went on to say that when the 99 year lease expires and the building has used its life's usefulness, then the City would have the responsibility of removing the structure in order to develop the property. Commissioner Enck further stated that if the City would want to sell the property or if the property is not being maintained by the owner, then there would be nothing to assess against the property owner because the property owner is the City. Mr. Donahue stated more information will be gathered by staff until the next EDA meeting. Motion by Commissioner Enck, seconded by Commissioner Wehling, to table Item 4 (Establishing the Economic, Development Authority as a Neighborhood Land Trust) until the July 25, 1994 EDA Meeting to enable staff to gather more information. Voting in favor: All. Motion carried. President Erickson introduced for discussion Item 5, Resolution Establishing Development Relationship with CO-OP Northwest Community Revitalization Corporation to Construct Specially Designed Twin Homes at 5009 Winnetka Avenue North (Improvement Project 505). Mr. Donahue suggested that the fact that Item 4 was tabled until the next EDA meeting, then this item should also be tabled to enable staff to gather more information. Motion by Commissioner Enck, seconded by Commissioner Wehling, to table Item 4 (Improvement Project 505) until the July 25, 1994 EDA June 27,1994 7300 42ND AVENUE #523 Item 6 MOTION Item 6 ALL STAR SPORTS #492 Item 7 IMP. PROJECT 513 Item 8 New Hope EDA Page 2 meeting. Voting in favor: All. Motion carried. President Erickson introduced for discussion Item 6, Motion Approving Listing Agreement with Thorpe Bros., Inc. to Market City-Owned Property at 7300 42nd Avenue North. Commissioner Otten asked what the tenure of the contract is. Mr. Donahue stated it is a one year contract. Marty Malecha, Assistant City Attorney, stated he would recommend two slight changes to the listing agreement with Thorpe Bros. Mr. Malecha stated the properties involved were obtained during a condemnation and it is unknown whether there are abstracts and titles for them and he said he would recommend that language be inserted that says under the Seller's Obligation, "seller hereby agrees to furnish to buyer an abstract" insert the language "if currently in seller's possession" so the City will not be liable for having to incur the cost of having to produce an $800 Abstract of Title. Mr. Malecha stated the second item is under Seller's Representation is a statement that says "sellers certifies that as of the date of execution of this agreement, seller has not received any notice of building, health, or fire code violations, nor notice of hazardous waste on the property", and because we are aware that there is some groundwater contamination, Mr. Malecha would recommend that the phrase "nor notice of hazardous waste" be struck from the agreement. Motion by Commissioner Enck, seconded by Commissioner Otten, to approve the listing agreement with Thorpe Bros. to market City-owned property at 7300 42nd Avenue North with the two changes listed above to the listing agreement. All present voted in favor. Motion carried. Mayor Erickson introduced for discussion Item 7, Consideration of Request by All Star Sports for Assistance with Site Improvements. Mayor Erickson stated his feelings on the matter are to assist All Star Sports with a Iow interest loan providing that All Star Sports fund a portion of the monies. Mr. Donahue stated that staff met with All Star Sports last week and they are interested in a Iow interest loan. Mr. Enck stated he has concerns about what All Star Sports said they were going to do to the property. Commissioner Enck said he would like to have All Star come back to the EDA with something definitive that they are aesthetically improving the exterior of the property to fit in with the re-development of 42nd Avenue. Commissioner Otten stated he was concerned with the precedent that would be set. Mayor Erickson said that the attitude of the EDA is to see some benefit to 42nd Avenue not only to the building. President Erickson introduced for discussion Item 8, Consideration of Request by Broadway Village For Increased Loan Support For Community Center Project, Improvement Project No. 513. Mr. Donahue stated that at the last Council meeting staff was directed to look at the issues surrounding the additional fund support being requested by Broadway Village. He said at issue was approximately $28,000 needed June 27,1994 MOTION Item 8 ADJOURNMENT because of increased costs due to the placement of a storm sewer pipe that ran just outside of the existing building and that the new proposed structure would sit on top it. It is the policy of the City that buildings cannot be located over pipes where possible. Mr. Donahue stated consequently the building has to be moved out and increased costs are incurred because there is a linkage between the old and new building. The City looked at the pipe that has been in the ground for many years and found it to be in good shape. The cleaning has been accomplished and the pipe has been inspected and appears to be in good condition and no problems are expected. Mr. Donahue stated that Broadway Village is asking for an additional loan support from the City of $14,000 to accomplish the needed construction due to the problems caused by the pipe. Commissioner Enck questioned if additional bridging would have to be put in place around the existing pipe. City Engineer Hanson said not at the moment as the construction proposed would not have to have any bridging done. Mr. Hanson stated the City would like to see the 8' pipe increased to 12' because an 8' pipe would be too restrictive if a backhoe would be used to make repairs. Mr. Hanson said the other condition would be would to have an agreement between the property owner and the City that in the future if the City does have to reconstruct the pipe, that all costs associated with sheeting to protect the existing buildings would be at the property owners cost. Motion by Commissioner Enck, seconded by Commissioner Otten, to approve increased loan support for Community Center Project (Improvement Project No. 513) with the additional conditions of the property owner being responsible to assume future sheeting responsibilities and increase the 8' pipe to a 12' pipe. Voting in favor. All. Motion carried. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:20 p.m. New Hope EDA Page 3 June 27, 1994 Approved EDA Minutes Meeting //9 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 July 25, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES REDEVELOPMENT PLANS Item 4 President Erickson called the meeting of the Economic Development Authority to order at 7:18 p.m. Present; Absent: Erickson, Enck, Otten, Williamson, Wehling None Motion was made by Commissioner Williamson, seconded by Commissioner Enck, to approve the EDA minutes of June 27, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving Master Modification to Redevelopment Plans and Tax Increment Financing Plans and Requesting the Approval of the City Council. Mr. Donahue stated that this agenda item should be considered prior to the City Council public hearing because the Economic Development Authority is making a recommendation to City Council to consider modifications to the Redevelopment Plan and Tax Increment Financing Plan and making findings with respect thereto. Mr. Donahue stated that any time the Redevelopment Plan for the City is changed, it is required to hold a public hearing if it involves tax increment financing. The City has six tax increment districts and what staff is asking for is modification to the plan in order to create a master plan. The reasons for the master plan modifications is to have the ability to .undertake certain activities designed to remove, prevent, and reduce blight and the cause of blight in the City. In addition, the City wants the ability to provide for facilities intended to serve all residents of the City. The purpose of modification of the plans is to set up a future financing mechanism to be in a position to help finance both housing programs and the possibility of a community center if it is agreed to at a later date. Mr. Donahue stated that the City has six redevelopment plans that now exist. He said the City has six tax increment financing districts and the purpose of tax increment financing is that the benefiting properties which makes up the district, benefit from the proceeds of tax increment financing. The tax increment financing is that difference between the frozen value of when the project starts to the increased value due to the new development. Mr. Donahue said the six districts'are as follows: 1) 2) 3) 4) 5) 6) 61st and W. Broadway - Anthony James Senior Housing Project North Ridge - Care Center North Ridge - Senior Housing Volunteers of America - 44th and XYlon 36th & Hillsboro Apartment Complex located on 36th Avenue Includes the 42nd Avenue Redevelopment Plan New Hope EDA Page 1 July 25, 1994 EDA RESOLUTION 94-07 SUSPEND MEETING RECONVENE MEETING Mr. Donahue explained that what the City would like to do is to modify all of the six plans within the six districts to incorporate and pool the excess tax increment funds to benefit properties. He said the objective is to combine the six tax increment districts to the redevelopment plans and the inclusion of additional properties (274) that will aid in the redevelopment of properties specified in the master plan in a manner beneficial to the residents of the City and consistent with the objectives of the Economic Development Authority. It will also aid in the construction of a public facility (community center) which will serve all residents of the City if it is decided to proceed. Mr. Donahue stated that a maximum budget has to be established. He said that over the next ten years there will be approximately $15 million in excess funds that could possibly be used. He said that $6 million will be set aside for multi-family housing, acquisition and rehab, $4 million for single family housing, acquisition and rehab. $1 million for commercial rehab and a community center of $4 million. This money could only be spent within the tax increment district and only if the Council and Economic Development Authority decides that sufficient acquisition and rehab is warranted because of blight, blighting conditions or other factors leading to substandard housing in the City. Mayor Erickson asked Mr. Donahue to explain to the audience what the legal uses of tax increment financing is so that it is understood that it cannot be used for budget purposes. Mr. Donahue said that the increment generated by the properties within a district can only benefit those properties in the district. The only exception in the law is that funds can be spent for a community center facility. Tax increment money cannot be spent on City operations, new City Hall, fire trucks, etc., but only those benefits to the property. Mr. Donahue said there are very specific and limited uses to tax increment financing and how the money can be spent is controlled by state law. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND REQUESTING THE APPROVAL OF THE CITY COUNCIL." The motion for adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Williamson, Enck, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. The EDA meeting was suspended at 7:21 p.m. The EDA meeting was reconvened at 9:01 p.m. LAND TRUST Item 5 New Hope EDA Page 2 President Erickson introduced for discussion Item 4, Resolution Establishing the Economic Development Authority as a Neighborhood Land Trust to Act as Authorized by Minn. Stat. § §462A.30 and 462A.31. City Manager Donahue stated that the Economic Development Authority had some questions relative to the State of Minnesota's Land Trust Act and how this impacts cities. He explained that the property is owned by the City and the homeowner leases it from the City. President Erickson July 25, 1994 inquired about maintenance of the property if a person is disabled and unable to care for the proPerty~ Mr. Donahue said he saw no difference in this property than any other property in the City, if the weeds grow and the grass gets high, the property owner gets an order, the City cuts the grass if necessary, and the cost is billed back to the property owner. President Erickson inquired if an agreement would have to be signed for the responsibility of maintenance. City Attorney Sondrall stated the home would have to be maintained and the property maintained in accordance with all of the building maintenance codes that regulate property. Commissioner Enck inquired if City personnel have to cut weeds and it is assessed against the property owner and that is the City of New Hope, is that not assessing ourselves. Mr. Donahue said the owner of the home who is leasing the property is responsible and will go against their taxes. City Attorney Sondrall explained that a lease payment will be made to the City under the lease agreement and part of that lease payment would be 1/12 of the property taxes that are attributable to that land so the land is not tax free. He said the purpose of the program is to allow the City as a land trust to underwrite the cost of the land and continue to own the land so that the acquisition of the land is not necessary to construct the house. Commissioner Enck stated one of his concerns is how long the City will own this property. He said he sees too many complications long range in trying to sell this property in the future. He went on to say he is concerned about the exposure of being a property owner if contaminants are found on the property. He stated he is opposed to the City proceeding with this dual ownership type of lease. City Attorney Sondrall said that CO-OP Northwest Community Revitalization Corporation is a qualifying non-profit association and also can establish itself as a land trust if it desires to do so. He said it is his understanding that because the City owned the property and wanted to control the development of the property, it was desirous of establishing itself as a land trust. If the City would like to sell the property to CO-OP Northwest and allow them to develop it, they could apply for the funding. He said this is a funding vehicle wherein the City is able to obtain state General Obligation Bond money for the project by establishing the City as a land trust. He said the establishment as a land trust also allows the City in conjunction with CO-OP Northwest to work with the county on the HOME Program that would allow for CO-OP Northwest to receive monies in the form of mortgages from the county for the purpose of assisting the owners of the structure to obtain financing to build the structure. Commissioner Enck questioned Mr. Donahue if New Hope has more subsidized, Iow income housing units than any other community in the metro area. Mr. Donahue stated the City has recipients of Section 8 dollars and most of it is going toward rental property. He said the City is high in subsidy given for rental property, but for single family home ownership there is not very much that is subsidized. Commissioner Enck stated although tl~at is not the issue here, the legal aspects of attempting to coordinate between the owner of the property being one and the owner of the structure being another, the assessments, maintenance of the lease, and complications at time of sale, he said he is not comfortable with the situation. New Hope EDA Page 3 July 25, 1994 President Erickson questioned Mr. Donahue about the clean-up of the site in question. Mr. Donahue replied that the building has been burned, the City received the contract today for the final site clearance. He said there are three sources of funds for this project: CDBG funds, HOME funds, and the land trust and everything has to work together. He said if the land trust is not agreed to, then staff would ask the EDA not to consider Items 6 and 7 on this agenda. He said staff would have to work out some alternate options. He said the award of HOME funds was based on this project. Commissioner Enck stated his inclination would be to ask staff to forego the grant, clean up the property and put it on the market for sale. President Erickson stated that some legitimate concerns were raised on this issue and the EDA wou~d like staff to address some of those concerns and bring this item back to the next EDA meeting. MOTION Item 5 Motion by Commissioner Enck, seconded by Commissioner Wehling, to table Item 5 (Establishing the Economic Development Authority as a Neighborhood Land Trust) until the August 8, 1994 EDA meeting to enable staff to gather more information. Voting in favor: All. Motion carried. IMP. PROJECT 505 Item 6 Motion Item 6 President Erickson introduced for discussion Item 6, Resolution Establishing Development Relationship with CO-OP Northwest Community Revitalization Corporation to Construct Specially Designed Twin Homes at 5009 Winnetka Avenue North (Improvement Project 505). Motion by Commissioner Enck, seconded by Commissioner Wehling, to table Item 6 (Improvement Project 505) until the August 8, 1994 EDA meeting. Voting in favor: All. Motion carried. 5009 WINNETKA Item 7 President Erickson introduced for discussion Item 7, Resolution Approving Thompson Associates to Screen Applicants that Wish to Purchase the Twin Home to be Built at 5009 Winnetka Avenue North. MOTION Item 7 Motion by Commissioner Enck, seconded by Commissioner Wehling to table Item 7 (Improvement Project 505) until the August 8, 1994 Economic Development Authority meeting. Voting in favor: All. Motion carried. ALL STAR SPORTS #492 Item 8 New Hope EDA Page 4 President Erickson introduced for discussion Item 8, Consideration of Request by All Star Sports for Assistance with Site Improvements. President Erickson stated he would like to see a site plan before any action is taken'on this matter. Commissioner Enck stated he believes the site improvement includes blacktop, handicap access door, and pylon sign. Commissioner Enck questioned if there is any enhancement to 42nd Avenue with this site improvement. Mr. Donahue asked for the EDA's direction in whether the parking lot and pylon sign constitutes improvements that would enhance 42nd Avenue. Commissioner Enck suggested denying the request by All Star Sports for assistance with a Iow interest loan. Mr. Donahue asked if All Star Sports reapplied, what is it that the EDA needs from them to consider the request. Commissioner Enck said he would like to have the whole facility look better rather than putting up a sign and redoing the blacktop which are maintenance items. July 25, 1994 MOTION Item 8 AUTOHAUS #467 Item 9 ADJOURNMENT Motion by Commissioner Enck, seconded by Commissioner Otten to deny the request by All Star SPorts for Assistance with Site Improvements. Voting in favor: All. Motion carried. Mr. Donahue asked the President if he could add Item 9. He presented a letter from Autohaus requesting the EDA to allow the existing retaining wall to remain in place five feet from the property line, due to the fact that Universal Colour Lab, Inc. will be extending their lease and the plan for the front display area will be delayed. Mr. Donahue said the basis for the ten feet setback on the retaining wall was that Autohaus was going to use that area for display of vehicles and not a parking lot or driveway. He said Autohaus will be extending their lease to Universal Color Lab for at least one year so there is a dual use of the property. Mr. Donahue said Autohaus is asking for consideration to leave the retaining wall at five feet and thus use it as a parking lot and driveway. Mr. Donahue said putting it out five feet causes more problems for traffic. Commissioner Enck suggested staff look at all of the outstanding issues in this matter and address what guarantees were made by Autohaus on the timing and removal of the tenant before this issue is addressed any further. President Erickson asked if this will have an impact on the 42nd Avenue beautification plan. Mr. Donahue said the City cannot proceed with any curb improvement on the property in conjunction with the 42nd Avenue Landscape/Maintenance Improvement Project until the retaining wall issue is resolved. The EDA recommended that staff review the agreements made with Autohaus and bring it back before the Economic Development Authority at a future meeting. Motion was made by Commissioner Enck, seconded by Commissioner Otten adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:30 p.m. Respectfully submitted, JReYcred~r~ ecr eta r¥ New Hope EDA Page 5 July 25,1994 Approved EDA Minutes Meeting #10 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 August 8, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES SECTION 8 Item 4 EDA RESOLUTION 94-08 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 11:31 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Staff Present: Malecha, Hanson, Donahue, Leone, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of July 25, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving the Section 8 Housing Program Contract for Administrative Services Between the Metropolitan Council and the City of New Hope and Authorizing President and Executive Director to Execute Agreement. This revised contract establishes the responsibilities of the Metropolitan Council and the City of New Hope in managing the Section 8 Housing Assistance Program. There are two basic changes in the contract: The administration fee available to the City will increase from $16.56 per unit/month to $21.00 per unit/month for basic administrative services. (The contract allows the City to receive an increase in fee for program management concurrent with an increase fee available to the Metropolitan Council. The fee increases are regulated by the Department of Housing and Urban Development.) The Metropolitan Council will pay ongoing administrative fees on a monthly basis, even though the City will only be required to submit quarterly invoices/reports. (The City is currently required to submit monthly invoices/reports.) Staff finds that the ~21.00 per unit/month is an adequate administration fee. Currently 255 families in New Hope receive assistance from this program. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING THE SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT FOR ADMINISTRATIVE SERVICES BETWEEN THE METROPOLITAN COUNCIL AND THE CITY OF NEW HOPE AND AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE AGREEMENT." The motion for adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Williamson, Enck, Wehling; and the following voted against the same: August 8, 1994 IMP. PROJECT #474 Item 5 MOTION Item 5 ADJOURNMENT None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 5, Consideration of Request to Delay Payment of Real Estate Taxes, Foremost, Inc., 7528 42nd Avenue North (Improvement Project No. 474). The EDA acquired the Foremost property at 7528 42nd Avenue for redevelopment purposes on July 19, 1993. The City entered into a two- year lease with Foremost at that time, which allowed Foremost to occupy the property for a 24-month period commencing on the date of closing pursuant to the terms of the lease. The lease requires Foremost to pay all operating expenses and real estate taxes during the course of the 24- month period in lieu of a specific rental payment. Payments under the lease consist of the real estate taxes due May 15, 1994 (full year's taxes), and February 1, 1995 (a prorata share of taxes due and payable in 1995 through July 19, 1995). The City forwarded the property tax statement to Foremost, Inc. this spring and the property taxes have not yet been paid. Staff has contacted and met with the owner of Foremost, Inc. and the owner is requesting EDA consideration of allowing him to pay only the first half of taxes at this time and paying the second half taxes this fall. The City Attorney also officially notified Foremost, Inc. on June 20th that they were in default of the lease agreement and that if the default was not corrected within 10 days after the notice the EDA has remedies available to it, as set forth in the lease agreement. Councilmember Enck did not support amending the contract. Mayor Erickson commented that part of the agreement with Foremost is that if the taxes are paid they can remove the equipment and fixtures. City Manager Donahue stated that if Foremost does not pay their taxes, the equipment and fixtures would not be released and they have no rights to the building. Mayor Erickson directed City staff to inspect the property to see that Foremost, Inc. has not removed any equipment or fixtures. Motion by Commissioner Enck, seconded by Commissioner Williamson, to deny the request by Foremost, Inc to delay payment of real estate taxes and to enforce the original contract. Voting in favor: All. Motion carried. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 11:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 August 8, 1994 Approved EDA Minutes Meeting #11 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 September 12, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES PROJECTS 523 & 505 Items 4 and 5 MOTION Items 4 and 5 OTHER BUSINESS IMP. PROJECT 474 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:50 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Williamson, to approve the EDA minutes of August 8, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Letter of Intent Submitted by Minne Mufflers, Inc. on City-Owned Parcel of 42nd and Nevada Avenues (#523); and Item 5, Discussion Regarding Development of City-Owned Parcel at 5009 Winnetka Avenue North (#505). Members of the Crystal Human Rights Commission were present to meet with the City Council following the EDA Meeting; therefore, the consensus of the EDA was to table the EDA agenda items. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to table Items 4 and 5 until the September 26, 1994, Meeting. All present voted in favor. Motion carried. Mr. Donahue asked the EDA to consider a request by Foremost to Delay Payment of Property Taxes (7528 42nd Avenue North), Improvement Project No. 474. Mr. Donahue stated previously the EDA directed staff to enforce the original contract. Discussion ensued regarding the payment schedule of real estate taxes by Foremost. Mr. Steve Sondrall, City Attorney, stated he has held a discussion with an attorney representing Mr. Fredendall and the City Attorney's office is prepared to start an unlawful detainer action. He stated the request tonight is an attempt to possibly circumvent the need for this type of action. Mr. Alan Fredendall, President and Owner of Foremost, was recognized. The EDA asked Mr. Fredendall if he was willing to comply with payment of the first installment to be paid within two days and the second installment due October 15th; and failure to do so will result in legal action by the City. Mr. Fredendall stated he cannot meet the October 15th deadline and asked for a 30-day extension to November 15th. Mr. Fredendall stated he is September 12, 1994 MOTION ADJOURNMENT pursuing property tax abatements for prior years. Due to the pollution problem, he has been unable to obtain bank financing, and this has been a burden to his business. Mr. Donahue informed the EDA that a penalty will be imposed by Hennepin County to Foremost on unpaid taxes. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, requiring Foremost's May 15th property tax payment to Hennepin County by September 14, 1994 and second half payment to be made by November 15, 1994. Voting in favor: Erickson, Otten, Wehling, Williamson; Voting against: Enck; Motion carried. Motion was made by Commissioner Wehling, seconded by Commissioner Williamson, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:04 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 September 12, 1994 Approved EDA Minutes Meeting//12 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 September 26, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES MINNE MUFFLERS Item 4 5009 WINNETKA NORTH Item 5 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 9:58 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Williamson, to approve the EDA minutes of September 12, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Letter of Intent Submitted by Minne Mufflers, Inc. on City-Owned Parcel of 42nd and Nevada Avenues (Improvement Project #523). Earlier this summer the City executed an agreement with Thorpe Bros. to market the property on behalf of the City. A letter of intent has been submitted by Minne Mufflers for development of a Car-X Muffler and Brake store. President Erickson commented that he would prefer a non auto-related business for the site. Commissioner Wehling suggested an office complex. Commissioner Enck inquired whether Oregon Estates may be interested in purchasing the property for open space. The consensus of the EDA was to respectfully decline the letter of intent submitted by Minne Muffler and direction to staff to pursue options other than auto-oriented businesses for the property. President Erickson introduced for discussion Item 5, Discussion Regarding Development of City-Owned Parcel at 5009 Winnetka Avenue North (#505). Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, stated the original proposal with the 5-city CO-OP Northwest Community Revitalization Corporation {CRC) was successful in securing a grant. The intent was to build a handicapped accessible duplex on the site using the HOME funds as second mortgage write-downs. In conjunction a $40,000 grant was received through the Minnesota Housing Finance Agency's Land Trust Program (MHFA). The MHFA program requires that the City own the site and it was thought that the project would be more affordable if the land cost was deducted from the sale price. Over the past several months, the EDA has indicated that they are not necessarily interested in owning the land. If that is the case, we should determine if we are going to forfeit the MHFA grant funds and not utilize them for this September 26, 1994 project. Mr. McDonald continued by stating if the EDA does not desire to own the land or use the MHFA Land Trust funds, staff is still encouraging the City to proceed with the development of a handicapped accessible duplex on the site using HOME funds as a second mortgage write down so that the goal of providing affordable housing in cooperation with CO-OP Northwest can still be accomplished. The amount of HOME funds requested from the CRC can be increased and other sources of funds could be utilized, including CDBG and scattered site housing money. He stated another alternative would be to market the existing property. He noted this would accomplish the first objective of removing a blighted structure, but it would not necessarily accomplish the second objective of providing a unique affordable housing home ownership opportunity for handicapped persons. The City would also have little control over the development of the site except for approval of building plans. Mr. McDonald stated the HOME funds have to be committed by December 31, 1994. For the record, Commissioner Williamson noted she does not object to the City owning the property. Commissioner Enck commented regarding several potential problems which could arise creating liability to the City. Commissioner Williamson questioned the legality of creating a separate property zoning for handicapped housing. Mr. Donahue stated according to ADA rules this not allowed; the City cannot create a class for disabled individuals. He noted zoning is allowed for senior housing. MOTION Item 5 Motion by Commissioner Enck, seconded by Commissioner Otten, directing staff to forfeit the MHFA Land Trust Funds and proceed with development of a handicapped accessible duplex through utilization of the HOME funds and other sources. All present voted in favor. Motion carried. Mr. McDonald commented that through advertisement, twelve persons have expressed an interest for home ownership on this property. OTHER BUSINESS Commissioner Enck asked staff to provide a report at a future meeting on the Autohaus development. ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 10:1 1 p.m. New Hope EDA Page 2 Respectfully submitted, Valerie Leone City Clerk September 26, 1994 Approved EDA Minutes Meeting #13 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 October 24, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 467 Item 4 MOTION IMP. PROJECT 524 Item 5 New Hope EDA Page 1 In the absence of President Erickson and President Pro rem Enck, the EDA appointed Commissioner Wehling to chair the meeting. Chair Wehling called the meeting of the Economic Development Authority to order at 10:30 p.m. Present: Absent: Staff Present: Otten, Williamson, Wehling Erickson, Enck Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of September 26, 1994. All present voted in favor. Motion carried. Chair Wehling introduced for discussion Item 4, Update on Site Improvements at Autohaus, 7709 42nd Avenue North (Improvement Project No. 467). Mr. Donahue advised the EDA that staff excused Mr. Oestrich of Autohaus from the meeting due to the number of items on the agenda and suggested that he return to a future meeting. Motion was made by Commissioner Otten, seconded by Commissioner Williamson, to table Item 4 until November 14, 1994. All present voted in favor. Motion carried. Chair Wehling introduced for discussion Item 5, Discussion Regarding Vacant Property at 4400 Quebec Avenue North, Improvement Project No. 524. Mr. Daniel Donahue, City Manager, indicated a company known as Conductive Containers, Inc. contacted the City and indicated they were interested in negotiating to purchase the vacant industrial building located at 4500 Quebec Avenue North. However, the site cannot accommodate maneuvering of full-sized semi-trucks without utilizing a portion of the vacant lot to the south known as 4400 Quebec. The 4400 Quebec Avenue property is identified in the City's preliminary Surface Water Management Plan as a possible future ponding site. The City Engineer met with staff and developed a sketch whereby a future pond could be developed on the southern portion of the property to accommodate the City's storm water needs and the northern portion of the property could be combined with the property to the north to address trucking needs. Mr. Donahue indicated staff will present the storm water ponding report and recommendations for funding the regional ponding concept in December. He stated the City could share the cost of purchasing the property with the interested business and then the City would retain a large easement for a future regional storm water pond and deed the October 24, 1994 MOTION Item 5 ADJOURNMENT property over to the business so that the parcel would not be tax exempt. He noted the tax value benefit to the City would offset the cost of the pond. He noted the property is appraised at $96,000 and the asking price is 40,000. Mr. Mark Hanson, City Engineer, reviewed the legislative mandate for watershed districts regarding storm water ponding. Motion by Commissioner Wehling, seconded by Commissioner Otten, to proceed with the concept of continuing to negotiate the purchase of the property at 4400 Quebec Avenue North. Voting in favor: All. Motion carried. Motion was made by Commissioner Williamson, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 10:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 October 24, 1994 Approved EDA Minutes Meeting //14 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 November 14, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 467 Item 4 IMP. PROJECT 510 Item 5 EDA RESOLUTION New Hope EDA Page 1 President Erickson called the meeting of the Economic Development ,Authority to order at 8:11 p.m. Present: Absent: Staff Present: Erickson, Enck, Otten, Wehling Williamson Sondrall, Hanson, Donahue, Leone, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of October 24, 1994. Voting in favor: Enck, Wehling, Otten; Abstained: Erickson. Motion Carried. President Erickson introduced for discussion Item 4, Update on Site Improvements at Autohaus, 7709 42nd Avenue North (Improvement Project No. 467). Mr. Tom Oestrich, Autohaus, responded to questions from the EDA regarding the site improvements at 7709 42nd Avenue North. He noted Universal Colour Lab is actively pursuing other locations but wishes to remain on 42nd Avenue. They have extended their lease another 13 months. Discussion ensued regarding construction of the retaining wall located five feet rather than ten feet from the prOperty line. The EDA directed staff to review previous minutes and correspondence pertaining to Autohaus and Universal Colour Lab; to obtain a certified copy of the lease; to contact the retaining wall contractor; and to discuss with Autohaus the front area parking lot striping. Staff is to meet with Autohaus to review incomplete items contained in the addendum, establish a plan of action, and report to the EDA on January 23, 1995. President Erickson introduced for discussion Item 5, Resolution Approving Additional Multi-family Housing Policy Loan for New Hope Apartments, 7200-7260 43rd Avenue North (Improvement Project No. 510). Mr. Daniel Donahue, City Manager, explained that the EDA approved a loan for $97,350 in February of 1994. The rehabilitation work has progressed through the summer and city staff is pleased with the completed work, the cooperation of the owners, and the overall execution of the rehabilitation project. Due to unanticipated additional costs, including $14,000 to redo the entire fire alarm system and $20,000 to replace unforeseen rotten wood around window and door openings, the property owners have exceeded the initial budget by approximately $40,000. The owners are requesting an additional $20,000 loan from the EDA to cover half of the additional expenses. Commissioner Enck introduced the following resolution and moved its November 14, 1994 94-09 item 5 IMP. PROJECT 505 Item 6 EDA RESOLUTION 94-10 Item 6 IMP. PROJECT 493 Item 7 New Hope EDA Page 2 adoption: "RESOLUTION APPROVING ADDITIONAL MULTI-FAMILY HOUSING POLICY LOAN FOR NEW HOPE APARTMENTS, 7200-7260 43RD AVENUE NORTH (IMPROVEMENT PROJECT NO. 510)." The motion for adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Absent: Williamson; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 6, Resolution Authorizing Executive Director to Execute Letter of Agreement with Equal Access Homes to Provide Design Services for Handicapped Accessible Twin Home at 5009 Winnetka Avenue North (Improvement Project No. 505). Ms. Sarah Bellefuil, Administrative Analyst, reported that the EDA is cooperating with the CO-OP Northwest Community Revitalization Corporation to construct a handicapped accessible twin home on city- owned property at 5009 Winnetka Avenue North. Upon completion, the home(s) and property will be sold to provide affordable home ownership opportunities for persons with disabilities. At this time, it is necessary to obtain design services for this project. The Iow bid has been submitted by Equal Access Homes to provide these services for $1,800. Commissioner Enck questioned the credentials of Equal Access Homes. Ms. Bellefuil assured the EDA that this company has performed numerous similar projects and comes highly recommended. President Erickson emphasized the importance of the structure blending well with the neighborhood. The EDA asked for an opportunity to review plans of the twin home prior to the construction process. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING EXECUTIVE DIRECTOR TO EXECUTE LETTER OF AGREEMENT WITH EQUAL ACCESS HOMES TO PROVIDE DESIGN SERVICES FOR HANDICAPPED ACCESSIBLE TWIN HOME AT 5009 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)". The motion for adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Absent: Williamson; whereupon the resolution was declared duly passed and adooted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 7, Resolution Calling for a Closed Meeting of the Economic Development Authority in and for the City of New Hope Authorized by Minn. Stat. 471.705 to Discuss Litigation/Settlement Strategy on Eminent Domain Proceedings Regarding 5501 Boone Avenue North (#493). November 14, 1994 EDA RESOLUTION 94-11 Item 7 ADJOURNMENT Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION CALLING FOR A CLOSED MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE AUTHORIZED BY MINN. STAT. 471.705 TO DISCUSS MTIGATION/SETTLEMENT STRATEGY ON EMINENT DOMAIN PROCEEDINGS REGARDING 5501 BOONE AVENUE NORTH (#493)". The motion for adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Absent: Williamson; whereupon the resolution was declared duly oassed and adooted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:36 p.m. Respectfully submitted, Valerie I_~one City Clerk New Hope EDA Page 3 November 14, 1994 Approved EDA Minutes Executive Session CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 November 14, 1994 CALL TO ORDER ROLL CALL DOYLE PROPERTY 5501 BOONE AVE N IMP. PROJECT 493 ADJOURNMENT The New Hope Economic Development Authority met in executive session pursuant to due call and notice thereof; President Erickson called the meeting of to order at 8:40 p.m. Present: Absent: Staff Present: Erickson, Enck, Otten, Wehling Williamson Sondrall, Hanson, Donahue, Leone, Bellefuil The EDA discussed the litigation/settlement strategy in connection with the eminent domain proceedings regarding 5501 Boone Avenue North (Doyle property). The property is being acquired to construct the Care Break Adult Day Care Center (//493). The EDA authorized the City Attorney to settle the case for a payment not to exceed $240,000. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned its Executive Session at 9:00 p.m. Respectfully submitted, Valerie Leone City Clerk Approved EDA Minutes Meeting //15 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 November 28, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 511 Item 4 EDA RESOLUTION 94-12 Item 4 ADJOURNMENT President Erickson called the meeting of the Economic Development Authority to order at 8:11 p.m. Present: Erickson, Enck, Otten, Wehling, Williamson Staff Present: Sondrall, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes (Regular and Executive Session) of November 14, 1994. Voting in favor: Erickson, Enck, Otten, Wehling; Abstained: Williamson. Motion carried. President Erickson introduced for discussion Item 4, Resolution for Authorization to Publish Notice and Hold Public Hearing Regarding Sale of 7109 62nd Avenue North (Improvement Project No. 511 ). Mr. Dan Donahue, City Manager, stated the public hearing will be held December 12, 1994. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION FOR AUTHORIZATION TO PUBLISH NOTICE' AND HOLD PUBLIC HEARING REGARDING SALE OF 7109 62ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 511)." The motion for adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling, Williamson; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Wehling, seconded by Commissioner Williamson, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:15 p.m. Respectfully submitted, Valerie Leone City Clerk Approved EDA Minutes Meeting//18 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 December 12, 1994 CALL TO ORDER ROLL CALL APPROVE MINUTES PUBLIC HEARING Item 4 CLOSE HEARING EDA RESOLUTION 94-13 Item 4 IMP. PROJECT 505 Item 5 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 8:51 p.m. Present: Erickson, Enck, Otten, Wehling, Williamson Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of November 28, 1994. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Authorizing Sale of 7109 62nd Avenue North to Daren Mattson (Improvement Project No. 511). Ms. Sarah Bellefuil, Administrative Analyst, updated the EDA regarding the property indicating the City purchased the property in October of 1993 for $36,263. The rehabilitation cost was $31,885. Both the purchase and rehabilitation of the property was funded through a MHFA grant, CDBG, and EDA funds. The house was sold for $59,900 through a lottery system with New Hope residents having first option in the lottery. Chairman Erickson questioned the house's appraised value. Ms. Bellefuil stated it was appraised at $57,900. She further explained that the MHFA grant covered the difference between the purchase and rehab price and the sale price. Motion was made by Commissioner Otten, seconded by Commissioner Williamson, to close the public hearing. All present voted in favor. Motion carried. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING SALE OF 7109 62ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 511)." The motion for adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling, Williamson; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly oassed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 5, Motion Approving Concept Design for the Twin Home to be Built at 5009 Winnetka Avenue North (Improvement Project No. 505). December 12, 1994 MOTION Item 5 ADJOURNMENT Ms. Sarah Bellefuil stated the City purchased the property at 5009 Winnetka Avenue North from HUD in February of 1994. The site has been prepared for the construction of a handicap accessible twin home, Staff has been working with Equal Access Homes to design a fully accessible twin home plan, She noted the access will be from 51st Avenue rather than Winnetka Avenue. Two design options were illustrated with the main difference being the roof style (hip roof or gable roof style). The estimated cost of construction is $155,000 (not including options, landscaping, curbcuts, driveway, sidewalk, or service hook-up). The EDA discussed maintenance free siding and windows, landscaping, and roof styles. Chairman Erickson expressed a preference to the wide siding. Commissioner Enck advised against placing a strip of grass between the driveways as it is difficult to maintain and is attractive only a short while. Mr. Mark Hanson, City Engineer, mentioned a preference to a peaked roof (gable) than a hip roof because there may be less dripping onto the driveway when the snow melts from the garage roof. Ms. Bellefuil mentioned the importance of the structure blending into the neighborhood. The EDA directed staff to make a decision on the roof line. Motion was made by Commissioner Williamson, seconded by Commissioner Wehling, to approve the concept design for the twin home to be built at 5009 Winnetka Avenue North. All present voted in favor. Motion carried. Motion was made bY Commissioner Commissioner Enck to adjourn the meeting. The New Hope EDA adjourned at 9:05 p.m. Williamson, seconded by All present voted in favor. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 December 12, 1994