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