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1993 EDAApproved EDA Minutes Meeting #1 CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 January 25, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES BY-LAW CHANGES NEW HOPE COMMUNITY REVITALIZATION CORPORATION Item 4 President Erickson called the meeting of the Economic Development Authority to order at 8:47 p.m. Present: Erickson, Enck, Otten, Wehling, Williamson Motion was made by Commissioner Enck, seconded by Commissioner Williamson, to approve the EDA minutes of December 28, 1992. Voting in favor: Erickson, Enck, Williamson, Otten; Abstained: Wehling. Motion carried. President Erickson introduced for discussion Item 4, Discussion of By-Law Changes of the New Hope Community Revitalization Corporation. Mr. Dan Donahue explained that Hennepin County has been allocated funds from the federal HOME housing program. A portion of these funds has been reserved for housing to be developed, sponsored or owned by Community Housing Development Organizations {CHDOs}. Tonight's discussion is to consider changing the existing New Hope Community Revitalization Corporation into a CHDO for the purpose of application for federal HOME funds. The Articles of Incorporation for the Revitalization Corporation have been revised to meet the requirements of the CHDO, with the major change being the composition of the board. Currently, membership of the Community Revitalization Corporation consists of Citizen Advisory Commissioners appointed by the City Council. He stated the by-law changes would amend the board membership to consist of three sectors: the public official sector, the low/moderate income sector, and the private sector {with only 1/3 of the Board appointed by the City Council). President Erickson expressed opposition to revising the CommUnity Revitalization Corporation into a CHDO as he felt the City would lose control. It was the consensus of the EDA to consider this issue during a future work session. New Hope EDA Page 1 January 25, 1993 ADOOURN#ENT Motion was made by Commissioner Enck, seconded by Commissioner Williamson, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:05 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 January 25, 1993 Approved EDA Minutes Executive Session CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 8, 1993 CALL TO ORDER ROLL CALL FORENOST PROPERTY 7528 42nd Ave. N. #474 ADgOURNNENT The New Hope Economic Development Authority met in executive session pursuant to due call and notice thereof; President Erickson called the meeting to order at 9:21 p.m. Present: Erickson, Enck, Otten, Wehling, Williamson Also Present: Steve Sondrall, Mark Hanson, Dan Donahue, Kirk McDonald, Valerie Leone The EDA discussed acquisition of the Foremost property in connection with a possible settlement to a threatened lawsuit. It was decided that the EDA would not make an affirmative offer but would respond to any offers made by the property owner to sell the property. The EDA directed staff to inform the property owners of this decision. Motion was made by Commissioner Enck, seconded by Commissioner Williamson, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned its Executive Session at 9:32 p.m. Respectful ly submitted, Valerie Leone City Clerk New Hope EDA Page 1 February 8, 1993 Approved EDA Minutes Meeting #2 CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 8, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES FOREMOST PROPERTY Item 4 EDA RES. 93-01 Item 4 ADJOURNMENT President Erickson called the meeting of the Economic Development Authority to order at 9:15 p.m. Present: Erickson, Enck, Otten, Wehling, Williamson Motion was made by Commissioner Williamson, seconded by Commissioner Otten, to approve the EDA minutes of January 25, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Calling for a Closed Meeting of the New Hope Economic Development Authority, Authorized by M.S. 471.705 to Discuss Litigation/Settlement Strategy on Foremost Property Located at 7528 42nd Avenue North (#474). Commissioner Williamson introduced the following resolution and moved its adoption: "RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY, AUTHORIZED BY M.S. 471.705 TO DISCUSS LITIGATION/SETTLEMENT STRATEGY ON FOREMOST PROPERTY LOCATED AT 7528 42ND AVENUE NORTH (#474)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, 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 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 9:18 p.m. Respectful ly submitted, Valerie Leone City Clerk New Hope EDA Page I February 8, 1993 Approved EDA Minutes Meeting #3 CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 22, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES EDA RESOLUTION Item 4 President Erickson called the meeting of the Economic Development Authority to order at 7:12 p.m. Present: Absent: Erickson, Enck, Wehling, Otten Williamson Motion was made by Commissioner Enck, seconded by Commissioner Otten, to approve the EDA minutes of February 8, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Finding Need to Acquire Title and Possession of Property by "Quick-Take" Approving the Appraisal of Damages Resulting from the Taking, and Ratifying and Authorizing All Steps Taken by Staff to Acquire the Property at 5501 Boone Avenue North and 5425 Boone Avenue North (Improvement Project No. 493). Commissioner Enck questioned whether the EDA is pursuing a friendly condemnation. Mr. Donahue explained that both property owners have been approached with that intent; however, they understand that a project is in place and if an agreement is not reached, the project will proceed through condemnation. He noted both property owners are familiar with the condemnation process. Commissioner Enck pointed out the significant differences between the first, second, and third appraisals. Mr. Donahue stated according to Brad Bjorklund the lower appraisals are reflective of known poor soil conditions which increase the cost of developing the property. He stated the cost of piling for the senior outreach services building is approximately $550,000. Commissioner Otten questioned the City's liability regarding soil contamination if any is discovered in the future. Mr. Steve Sondrall, City Attorney, explained that there is a statutory provision which protects the City for clean-up costs relating to soil contamination. He commented that federal law may subject the City to liability; however, he does not believe there is any concern with this case. New Hope EDA Page i February 22, 1993 EDA RESOLUTION #93-02 NEg HOPE TERRACE APARTMENTS Item 5 Mr. Sondrall continued by stating if an agreement is not reached with the property owners, the City will proceed with condemnation and commissioners will be appointed and after the hearings property values will be determined. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF PROPERTY BY "QUICK-TAKE" APPROVING THE APPRAISAL OF DAMAGES RESULTING FROM THE TAKING, AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTY AT 5501 BOONE AVENUE NORTH AND 5425 BOONE AVENUE NORTH (#493)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereof; the following voted in favor thereof: Erickson, Enck, Wehling, Otten; and the following voted against the same: None; Abstained: None; Absent: Williamson; whereupon the resolution was declared duly passed and adopted, signed by president which was attested to by the city clerk. President Erickson introduced for discussion Item 5, Discussion Regarding Assessment Agreement of New Hope Terrace Apartments (Emerald Pointe Apartments). Mr. Donahue explained that the owners of Emerald Pointe Apartments, formerly known as New Hope Terrace Apartments, are asking the City to change the assessment agreement which was put into place when the original project was built. The assessment agreement guarantees that there will always be sufficient flow of monies to pay off the tax increment bonds. The assessment agreement stipulates a minimum 2% increase of market value per year. At the time the project was developed a base value of 5.5 million dollars was established. Today that market value is 6.3 million dollars. It will build every year at aminimumof 2%. He presented illustrations of the projected taxes based on the market value according to the assessment agreement. In 1993 the owners would pay $271,286 in taxes. The total expenditures in 1993 to pay off the bonds is $221,048. There is a considerable disparity between revenues and expenditures. He stated the fund balance on December 31, 1993, would be $600,007. In year 2003 when the bonds are to be paid off, the fund balance would be $1,936,158. The current tax rate of the City is 1.27%. He emphasized that the projected figures are based on the tax capacity rate remaining constant over time which is an unlikely scenario. Mr. Donahue stated the owners would like some relief and changes to the assessment agreement. They are experiencing some financial difficulties and in order to make the project feasible for them they need some changes New Hope EDA Page 2 February 22, 1993 to the assessment agreement. He stated prior to the consideration of changes in the assessment agreement it is advisable that a third party be hired to conduct an audit so the EDA is aware of the financial condition. Mayor Erickson explained that the current market value, based on the assessment agreement, is 6.3 million. Without the assessment agreement the County would set the 1993 market value at 5 million. He questioned whether a 5 million market value would generate enough property taxes to pay off the general obligation bonds. Mr. Donahue explained the consequences and legal obligations of the City regarding the general obligation bonds. He stated the City backs the bonds and if the project were to default and there was no increment to flow from the tax revenues, the City would be responsible for payment of the bonds. He continued by stating the lower market value will generate a lower tax rate and the EDA must be assured that the lower value will pay a sufficient amount of revenues to keep a sufficient fund balance and pay off the bonds. Next, Mr. Donahue illustrated tax projections based on a $5,000,000 market value and assuming a constant tax capacity rate. In 1993 revenue of $216,335 would be generated and $215,553 in expenditures with a fund balance of $550,551. The projections between 1993-1998 show comparatively close revenues and expenditures. He recommended maintaining a minimum fund balance of $500,000. The fund balance in 1998 would be $695,207 and builds to $889,937 by year 2003. He reiterated the fact that the projections were based on the tax capacity rate remaining constant. He stated there is an approximate frozen value of $200,000 which generates $9,000 to all taxing jurisdictions and, although minimal, has not been factored into the projections. His recommendation to the EDA was to consider the long- term health of this property and whether an adjustment in the assessment agreement will provide assistance to that end and whether the financial need can be verified. An independent audit can reveal the necessary data. President Erickson inquired whether a clause could be included in the contract to guarantee the market value generates sufficient tax to pay the bonds. Mr. Sondrall indicated he believed it would be possible but he would discuss it with Jerry Gilligan, who New Hope EDA Page 3 February 22, 1993 participated in the creation of the assessment agreement. He noted if the assessment agreement was modified in no event should the property owner pay taxes less than what is necessary for the bond issue. President Erickson stated first the EDA must protect the City by ensuring adequate taxes to pay off the bond and second, if the audit shows this is a distressed financial situation, lowering the valuation will provide enough cash flow to maintain the complex. He recommended pursuing the audit. Mr. Donahue named firms capable of conducting the audit. Mr. Paul Brewer, Lang-Nelson Associates, addressed the Council and stated they purchased the property in January of 1992 for $5,000,000. Mr. Brewer stated the current situation would allow the bonds to be paid off by 1998. He pointed out that a reduction of market value to $5,000,000 would only affect the pay off by one year, 1999 compared to 1998, which is still well in advance of the projected 2003 pay off date. He commented that the economic impact to the City will not be harmed by reducing the market value. He noted Lang-Nelson has approximately 3,000 apartment units within the metro area at 23 different sites with 500 of these units in New Hope: 252 at Broadway Village Apartments; 73 units at Anthony James; and 152 units at Emerald Pointe. Mr. Frank Lang next addressed the Council. He stated there are two important facts to understand in determining estimated market value of real estate. Since the 30 years he has been in real estate there has been no year where there has not been an increase in estimated market value and/or mill rate. He stated an increase in value will greatly increase the projections mentioned by Mr. Donahue. Mr. Lang stated today 25¢ of every dollar of revenue from Emerald Point is paid towards real estate taxes. He is concerned that the property will be dysfunctional if no changes are made to the assessment agreement. He conveyed his pride in the properties of which he is involved and his confidence that Emerald Pointe will be a beautiful apartment community for the 1990's. He stated lowering the property taxes will ensure that adequate funds are available and go towards necessary repairs. He stated dollars paid for real estate taxes have grown New Hope EDA Page 4 February 22, 1993 substantially and not proportionate to the dollar amount of the estimated market value. He emphasized that the amendment to the assessment agreement will prove to be a "win/win" situation for both the City and property owners. The City will get the TIF paid off ahead of schedule; residents and community will have a better maintained and attractive complex; and the property owners will have a viable apartment community. Mr. Lang made reference to the impact this change would have to their escrow which is currently set at $400,000. He stated multi-housing is under a great deal of stress from social and economic issues. He feels its to the City's advantage to develop a good relationship with owners who are dedicated to the maintenance and ownership of their apartments. He requested consideration of his proposal. He stated the proposal would not be detrimental to anyone and he is willing to agree to an escalator to ensure that taxes cover bond payments. President Erickson inquired whether Mr. Lang would agree to an audit. Mr. Lang consented to the independent audit as well as an escalator clause in the contract to protect the City in the event the market value is such that it would not generate sufficient property taxes to cover bond payments. President Erickson suggested taking no action at tonight's meeting other than instructing staff to proceed with the audit and upon conclusion of the audit the EDA would discuss the issue again. Mr. Donahue felt the audit could be complete prior to the March 22nd meeting. Mr. Lang expressed his confidence in reaching a mutually agreeable arrangement. Commissioner Enck questioned the distribution of excess funds once the bonds are paid. Mr. Donahue stated the County will receive 10% and the remaining portion will be redistributed of which the City receives 17% as its normal part of the tax pie. Commissioner Enck noted that he is not as adamant regarding not changing the structure as he was previously during 1992. He commented, however, that it is not necessarily a "win/win" with a no loss situation. He stated there will be a difference of an excess of a million dollars in year 2003 if the structure is not New Hope EDA Page 5 February 22, 1993 NOTION EDA RESOLUTION Item 6 EDA RESOLUTION #93-03 ADJOURNMENT changed; and the City would receive its portion of that amount. He stated considering what the City is entitled to and the moral issues are significantly different and he is looking to the audit results to see if there is an ability to achieve an equitable resolution to Lang- Nelson's conflict. Mr. Lang agreed that there will be a reduction of approximately $170,000 but the City's goal was not to make a profit on the development but the assessment agreement was to guarantee repayment of the bonds. He stated property have escalated greater than anticipated at the time the agreement was put into effect. He thanked the EDA for their open mindedness to the proposal and stated the audit will prove that 25¢ of every dollar received from the complex goes towards real estate taxes. Mr. Lang noted several improvements already made to the apartment complex. Mr. Donahue stated the audit will cost approximately $2,000 and will be paid by the existing tax increment surplus fund. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to authorize staff to proceed with the audit and bring the issue back no later than April 12, lg93. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 6, Resolution Calling for a Closed Meeting of the New Hope Economic Development Authority, Authorized by M.S. 471.705 to Discuss Litigation/Settlement Strategy on Foremost Property Located at 7528 42nd Avenue North {#474) Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY, AUTHORIZED BY M.S. 471.705 TO DISCUSS LITIGATION/ SETTLEMENT STRATEGY ON FORENOST PROPERTY LOCATED AT 7528 42NDAVENUE NORTH {#474}". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereof; the following voted in favor thereof: Erickson, Enck, Wehling, Otten; and the following voted against the same: None; Abstained: None; Absent: Williamson; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the city clerk. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting as there was no further business to come before the EDA. All voted in New Hope EDA Page 6 February 22, 1993 favor. The New Hope adjourned at 7:56 p.m. Economic Development Authority Respectful ly submitted, Valerie Leone City Clerk New Hope EDA Page 7 February 22, 1993 Approved EDA Minutes Executive Session CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 22, 1993 CALL TO ORDER ROLL CALL FORENOST PROPERTY 7528 42nd Ave. N. #474 NOTION ADJOURNNENT The New Hope Economic Development Authority met in executive session pursuant to due call and notice thereof; President Erickson called the meeting to order at 8:02 p.m. Present: Erickson, Enck, Otten, Wehling Absent: Williamson Also Present: Steve Sondrall, Mark Hanson, D~n Donahue, Kirk McDonald, Valerie Leone The EDA discussed acquisition of the Foremost property in connection with a possible settlement to a threatened lawsuit. Motion was made by Commissioner Enck, seconded by Commissioner Otten, authorizing staff to negotiate an acceptable purchase contract with Foremost for acquisition of the property. All present voted in favor. Motion carried. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned its Executive Session at 8:19 p.m. Respectful ly submitted, Valerie Leone City C1 erk Approved EDA Minutes Meeting #4 CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 March 22, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES NEW HOPE TERRACE APARTMENTS Item 4 NEW HOPE COMMUNITY REVITALIZATION CORPORATION Item 5 EDA RESOLUTION 93-04 Item 5 ADJOURNMENT New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 9:51 p.m. Present: Absent: Erickson, Otten, Wehling, Williamson Enck Motion was made by Commissioner Otten, seconded by Commissioner Williamson, to approve the EDA regular and executive session minutes of February 22, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Presentation of Interim Audit Report Prepared by Springsted Relative to the Assessment Agreement and Tax Increment Financing on the Emerald Pointe Apartment Complex (formerly New Hope Terrace). Mr. Donahue indicated that on February 22, 1993, the EDA authorized proceeding with an audit and directed staff to report back no later than April 12th. He informed the EDA that part of the information is available and a final report will be presented at the April 12th meeting. President Erickson introduced for discussion Item 5, Resolution Appointing Directors to the Board of the New Hope Community Revitalization Corporation. Commissioner Wehling introduced the following resolution and moved its adoption: "RESOLUTION APPOINTING DIRECTORS TO THE BOARD OF THE NEW HOPE COMMUNITY REVITALIZATION CORPORATION". 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, Otten, Williamson, Wehling; and the following voted against the same: None; Absent: Enck; 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 Williamson, seconded by Commissioner Wehling, to adjourn the meeting, as there was March 22, 1993 no further business to come before the EDA. All voted in favor. The New Hope Economic Development Authority adjourned at 9:52 p.m. Respectful ly submitted, Valerie Leone City Clerk New Hope EDA Page 2 March 22, 1993 Approved EDA Minutes Meeting #5 CITY OF NEW HOPE 4401XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 April 12, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES NEW HOPE TERRACE AGREEMENT Item 4 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 11:50 p.m. Present: Erickson, Enck, Otten, Wehling, Williamson Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of March 22, 1993. Voting in favor: Erickson, Williamson, Wehling, Otten; Abstained: Enck. Motion carried. President Erickson introduced for discussion Item 4, Consideration of Request by LaNel Financial Group, Inc. for Changes to New Hope Terrace Assessment Agreement. Mr. Donahue stated the assessment agreement specifies a certain minimum market value to the Emerald Pointe Apartment complex {formerly known as New Hope Terrace). The request by LaNel Financial Group is to modify the assessment agreement and bring it more in line with what Hennepin County assessors would actually appraise the market value to the project. Springsted, a financial consultant, was hired to review the request and report on the advantages and disadvantages to the City and developers. Springsted has analyzed the project and will summarize their analysis results. Mr. Barry Fick, Springsted Inc., was recognized and explained their findings. He stated they first analyzed the financial effects to the City 1) if the assessment agreement remained in place as is and 2) if it was modified. He stated if the agreement is amended as proposed, there would be a decrease of $800,000 in the total amount of funds available through year 2003 {current expiration of the district). Also, Springsted reviewed the actual finances of the project to determine projected returns. In addition to projecting the return, they projected the effect the proposal would have on their financial situation and the magnitude of that effect. LaNel provided operating data for the project for 1992 which was projected forward. Springsted found that taking all factors into April 12, 1993 consideration the return on their equity under the current assessment agreement would be a low positive number. The alternative where their assessment agreement would be modified showed the return on equity would be increased but it is still not a high figure. Mr. Fick stated the difficulty with doing such an analysis and projecting an industry standard is that the industry standard is somewhat vague, but based on the information we have been able to use the return that LaNel would be projected to receive throughout the life of the project is slightly on the lower side of the range. Their analysis has purposely not taken into account the possibility of what would occur if LaNel were to eventually sell the project. The speculation of the future market value is too indefinite to make a judgement. commissioner Enck inquired whether a guarantee could be built into the agreement whereby the assessment agreement could be artificially increased in order to cover the life of the bond issue. Mr. Steve Sondrall, City Attorney, stated regardless of the assessed value, the agreement could be written to include assurance that the tax amount is sufficient to maintain a viable TIF district. Commissioner Enck questioned the effect a future sale of the property would have on the assessment agreement. Mr. Sondrall stated the assessment agreement will remain binding to anyone who purchases the property. Commissioner Enck expressed his intent to approve an amendment to the agreement with LaNel. President Erickson initiated discussion regarding LaNel's previous proposal to subsidize ten rental units. He questioned whether they were willing to offer a similar proposal in exchange for the amendment to the assessment agreement. Mr. Frank Lang, LaNel, was recognized and commented that although such an offer appeared economically feasible previously, they could not offer it now due to operation costs. President Erickson stated a monthly subsidy of $100 for ten units would amount to $12,000 per year. In lieu of the subsidy, the City would be willing to accept a donation of $12,000 to use for human services programs. New Hope EDA Page 2 April 12, 1993 MOTION Item 4 IMPROVEMENT PRO~ECT #505 Item 5 EDA RESOLUTION 93-05 Item 5 IMPROVEMENT PROJECT 474 Item 6 New Hope EDA Page 3 Mr. Lang stated the project will have a difficult time even with the reduction in estimated market value. He urged the EDA to not include such a condition as it is not a matter of greed but a matter of allowing the complex to function well. Commissioner Williamson mentioned that Emerald Pointe is one of the nicest apartment complexes in New Hope and she is pleased to have the opportunity to assist the property owners for maintenance re-investment. Motion was made by Commissioner Williamson, seconded by Commissioner Otten, to approve the amendment. Commissioner Enck interjected the amended agreement should contain language specifying an annual or semi-annual review. Mr. Donahue suggested that the EDA authorize staff to work out the details with LaNel and draft an amended assessment agreement outlining the conditions. He noted LaNel asked for a final recommendation by the end of April. He stated the agreement could be presented to the EDA for final approval at the April 26th EDA Meeting. Motion was made by Commissioner Enck, seconded by Commissioner Otten, tabling the item until April 26, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Resolution Authorizing Commencement of Eminent Domain Proceedings to Acquire Property at 5009 Winnetka Avenue North (Improvement Project No. 505). Councilmember Enck introduced the following resolution and moved its adoption: 'RESOLUTION AUTHORIZING COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY AT 5009 WINNETKA AVENUE NORTH (#505)'. 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 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 the President and Executive Director to Execute Purchase Agreement and Lease for Foremost Property at 7528 42nd Avenue North (Improvement Project No. 474). April 12, 1993 EDA RESOLUTION 93-06 Item 6 INPROVENENT PROJECT 474 Item 7 EDA RESOLUTION g3-07 Item 7 New Hope EDA Page 4 The resolution authorizes execution of the purchase agreement and lease agreement in connection with the Foremost property at 7528 42nd Avenue North. The acquisition price is $450,000 and Foremost will be allowed to occupy the property for a 2-year period commencing on the date of the closing. Foremost is responsible for operating' expenses and real estate taxes during the course of the rental period. They also will be allowed to remove all machinery and fixtures from the property when the lease expires. Foremost also is paying all past due real estate taxes and unpaid special assessments. Commissioner Enck stated if the City is named as an additional insured he would recommend the policy limit be set at a minimum of $1,000,000. He also suggested amending the City's insurance policy to ensure that adequate insurance is being provided and that the City's interests are being protected. Mr. Sondrall pointed out that execution of the purchase agreement and lease is contingent upon receipt of the abstract ensuring proper title. Councilmember Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE PURCHASE AGREEMENT AND LEASE FOR FOREMOST PROPERTY AT 7528 42ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 474)". The motion for the adoption of the foregoing resolution was seconded by Councilmember 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 resolution was declared duly passed and adopted, signed by the president which was attested to be the executive director. President Erickson introduced for discussion Item 7, Resolution Authorizing the President and Executive Director to Sign Contamination Remediation and Right of Entry Agreement {Improvement Project No. 474}. Councilmember Wehling introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN CONTAMINATION RENEDIATION AND RIGHT OF ENTRY AGREEMENT (IMPROVEMENT PROJECT NO. 474)". 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 thereof: Erickson, Enck, Otten Williamson, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was April 12, 1993 IHPROVEHENT PRO~ECT 467 Item 8 New Hope EDA Page 5 declared duly Passed and adopted, signed by the president which was attested to be the executive director. President Erickson introduced for discussion Item 8, Consideration of Request for Extension on Development Contract Improvements, Autohaus, Inc., 7709 42nd Avenue North (Improvement Project No. 467}. Mr. Donahue stated Autohaus has requested an additional extension to complete the development improvements. The request involves a one-year extension to complete the front lot improvements which were to be completed by October 31, 1992. The request also involves a 3-4 year extension to the rear lot improvements which are to be completed by October, 1993. Commissioner Enck questioned the completion date for the area north of the south property line. Mr. Oestreich stated it should be completed within 45-60 days. He commented that the area is muddy and requires immediate attention. He noted the contractor has experienced problems which contributed to the delay. The only area changed is the surmountable curb portion which they intend to pave then landscape and install fence to improve the front appearance. He also noted their intent to install a new sign. Mr. Donahue recommended approval of a one-year extension on the front lot improvements which would require completion by October, 1993. He noted rather than installing bituminous curb as specified in the site plan, Autohaus is proposing to paint striping for the display area. Commissioner Enck noted that he is uncomfortable with a four-year extension on the development for the rear portion of the lot. Mr. Tom Oestreich, Vice President of Autohaus, pointed out that the site has significantly improved compared to its previous condition. He stated due to the economic recession in the automobile industry they have been unable to fund the entire development. Commissioner Enck proposed to extend the contract for the front portion of the lot until October 31, 1993, and the rear portion of the lot until October 31, 1994, with the understanding that if Autohaus is unable to complete the improvements for the rear lot by October 31, 1994, a April 12, 1993 MOTION Item 8 ADJOURNMENT letter should be submitted to the City by March, 1994, with an explanation and request for extension. Mr. Oestreich acknowledged acceptance of the EDA's terms. He stressed the fact that the area has already been dramatically improved. Mr. Donahue next informed the EDA that Mr. Boettcher has requested that the City release the $26,300 certificate of deposit to fund a portion of the work. He did not recommend releasing the financial security since it secures performance under the Development Contract. He stated since Mr. Boettcher is ahead of the loan repayment schedule by $23,000, the City could refund this amount to Autohaus. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, approve the extension request {October 31, 1993 for the front lot improvements and October 31, 1994 for the rear lot improvements) on Development Contract Improvements for Autohaus {7709 4grid Avenue North); and authorization to return advance loan payments. All present voted in favor. Motion carried. Commissioner Wehling noted the lapse of time between correspondence to Autohaus and questioned whether this is typical. Mr. Donahue indicated staff frequently had communications with Mr. Boettcher; the correspondence serves as formal documentation. verbal written 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 12:15 p.m. Respectful ly submitted, Val erie Leone City Clerk New Hope EDA Page 6 April 12, 1993 Approved EDA Minutes Meeting #6 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 April 26, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES NEW HOPE TERRACE AGREEMENT Item 4 President Erickson called the meeting of the Economic Development Authority to order at 8:30 p.m. Present: Erickson, Enck, Wehling, Otten, Williamson Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of April 12, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Motion Approving Execution of Addendum to Assessment Agreement for Emerald Pointe Apartment Complex, FKA New Hope Terrace. Mr. Donahue stated he met with representatives of Lang-Nelson this past week regarding the assessment agreement. He recommended that the owners provide an annual payment of $10,000 to the City in exchange for the amendment to the assessment agreement. The $10,000 payment would be utilized for housing purposes to benefit Iow and moderate income housing efforts in the City. During 1992 the developer had offered to provide funds to subsidize some apartments for Iow/moderate income persons. He stated the change in the assessment agreement would lower the market value of the apartment project and allow payment of less property taxes. He noted the approximate net gain of $58,000 by the developers with the amended assessment agreement. Commissioner Enck questioned whether the addendum to the assessment agreement (condition 4) is establishing the property's market value at $5,000,000 rather than allowing it to be set by Hennepin County. Mr. Donahue stated the market value will be established by the Hennepin County Assessing Department. The developers will assume full cost of principal and interest on the bond payments. The current surplus (excess of $500,000) would remain in the funds which would cover two years of interest and bond payments. President Erickson pointed out that the amended assessment agreement would remain in effect until the bonds are paid off regardless of a change in property ownership. Mr. Steve Sondrall, City Attorney, stated the owners have requested the effective date of the amended agreement be January 1, 1991, so that it Would be applicable to taxes payable in calendar year 1992 and thereafter. He explained if that occurred, the owners would be receiving an abatement of their taxes for the last calendar year. Also, the City would receive a New Hope EDA Page 1 April 26, 1993 $10,000 payment effective for the last calendar year. Mr. Sondrall stated paragraph 4 which refers to debt service payment would be for TIF bonds currently outstanding. The arrangement would change in the event the City refinanced the bonds. Mr. Sondrall stated the agreement would remain in effect until year 2003 or payoff of the bonds, whichever occurs first. Commissioner Williamson voiced objection to the 910,000 payment clause. President Erickson expressed reservation regarding taking funding from one complex to support an entirely different housing project. Mr. Frank Lang was recognized and mentioned that the Addendum includes a provision for a temporary construction easement. Mr. Sondrall stated if the 36th Avenue Railroad Bridge is reconstructed Mr. Lang has agreed to provide temporary construction easements at no cost to the City. Mr. Lang expressed his reluctance to providing the $10,000 payment and reminded the EDA of the prior discussion of this issue at which time he felt the EDA understood his inability to agree to the payment. Commissioner Wehling questioned the events which transpired leading to the discontinuance of the Iow and moderate income rental units. Mr. Sondrall explained that the Minnesota Housing Revenue Bonds sold to finance the project were repaid when the new owners purchased the property. As a result, the requirements for subsidized rental units made part of the deed covenants were released. Commissioner Wehling questioned the action taken by the EDA at the April 12th meeting. Mr. Donahue stated the EDA directed staff to proceed to draft the document (the amended assessment agreement). Mr. Lang emphasized that he is one of the better developers and multiple- dwelling owners within the New Hope and the City should want to retain and attract good people such as himself. He pointed out that he seldoml¥ makes requests from the City and if there was any way he could agree to the 910,000 clause he surely would do so. He reiterated his commitment to the apartment complex and urged the Council to approve the amended assessment agreement without the $10,000 payment stipulation. Discussion ensued regarding the annual $10,000 payment. Commissioners Enck and Otten both expressed support of such a stipulation since the funds would be earmarked for housing purposes. It was noted that the assessment agreement was in place and Mr. Lang was New Hope EDA Page 2 April 26, 1993 MOTION Item 4 VOTE ON MOTION IMP. PROJECT 467 Item 5 aware of it prior to the purchase of the property. Mr. Lang maintained his position of not being able to concede to the $10,000 stipulation. Motion was made by Commissioner Williamson, seconded by Commissioner Wehling, approving Execution of Addendum to Assessment Agreement without the $10,000 payment clause. Preceding voting on the motion, Commissioner Enck requested clarification on the minimum market value. The City Attorney stated the market value will be determined by the Hennepin County Assessor with the minimum market value set at $5,000,000. He also clarified that based on the preceding motion the language regarding the $10,000 payment will be deleted from the Addendum. Voting in favor: Williamson, Wehling, Otten, Erickson, Enck; Voting Against: None; Motion carried. Commissioner Enck conveyed his support for the amendment and pointed out that the original purpose of the contract was to satisfy the debt of the tax increment financing bonds. Commissioner Otten indicated that the EDA is very pleased with the new management and hopes Mr. Lang has not been offended by any discussions which have taken place. President Erickson introduced for discussion Item 5, Resolution Authorizing Addendum to City of New Hope Development Contract for Autohaus Addition (Improvement Project No. 467). Mr. Donahue stated on April 12th the EDA approved an extension to the development contract between the City and Autohaus. As a result, an addendum to the development contract has been prepared and is now before the EDA. The Addendum does not release the Letter of Credit, as requested by Autohaus, and Autohaus would like to discuss this further. Mr. Donahue explained that when he recommended return of Autohaus' advance payments of $22,000, he was unaware of their refinancing efforts. He stated as part of the refinancing, Autohaus is using the excess $22,000 as part of the basis for the new mortgage. The request by Autohaus is to be relieved of the $26,000 letter of credit obligation which guarantees the developments. Commissioner Enck cautioned the EDA against releasing the letter of credit as it would be a significant precedent setting move in the City of New Hope. He pointed out that the financial guarantee is designed to guarantee certain development work and the project is not yet complete. President Erickson questioned the possibility of the EDA holding the New Hope EDA Page 3 April 26, 1993 $22,000 advance payments to guarantee completion of the development work. Mr. Sondrall commented that even if President Erickson's suggestion was permissible, it would not assist Autohaus since earmarking the $22,000 for development improvements would affect their financial situation pertaining to the refinancing issue. Discussions continued regarding the improvements. Mr. Oestreich contended that the financial security was required for assurance of proper storm sewer work when the rear property is developed. He continued by stating since they entered into the contract the auto business has changed. He emphasized that they have dramatically improved the rear portion of the site by removing debris and planting grass. He mentioned the poor economy and that they have tried to cut their overhead including personnel cuts. Mr. Oestreich continued by reporting the drainage on the rear property is adequate and wondered whether the EDA would release the financial guarantee if Autohaus agreed to forego future development of that portion of property. He also made reference to higher property taxes due to the purchase of the animal hospital property and school district property. He stated the property was consolidated into one large parcel causing real estate taxes to increase by $9,000. Mr. Oestreich concluded by pointing out they desperately need the funds freed up in order to finish the front lot improvements (sign, paving, landscaping, sidewalks, and front entrance). The EDA expressed its desire for Autohaus to conclude the development. Mr. Hanson confirmed that the $26,000 guarantee was required because at the time Autohaus purchased the property from the school district they planned to pave the rear area. The improvements included developing a storm sewer system that would collect water from the bus garage plus the new part of their site. The storm sewer system would bring the water to a retention pond that would treat the storm water from the drainage area before discharging it into the wetland (Old Dutch Pond). He pointed out that the Autohaus property must be dealt with in accordance with the wetland standards; however, if Autohaus' plans have changed, the storm sewer improvements may not be warranted. Mr. Sondrall raised the issue of amending the original development contract. He stated the purpose of the loan was to allow Autohaus to make private improvements plus public improvements for which the City required a financial guarantee. He commented that currently the development contract is such that it requires Autohaus to improve the rear area and provide storm sewers. If Autohaus fails to improve the back portion of their lot, they would be in default and the EDA could enforce the contract by taking legal action. He continued by stating the contract can be amended if the EDA desires New Hope EDA Page 4 April 26, 1993 MOTION Item 5 ADJOURNMENT to relieve Autohaus of certain obligations involving the rear property. The contract could be amended to provide Autohaus the option versus the requirement to make rear lot improvements. He pointed out that by providing this as an option, the financial guarantee would not be necessary until they actually request permission to develop the area. President Erickson stated the City has cooperated extensively with Autohaus and if necessa~ may have to provide another extension to the deadline for the rear property improvements. Commissioner Williamson suggested re-negotiating the development contract and reconsider the necessity of drainage work in the rear of the property. President Erickson stated the main objective of the contract was completion of the front yard improvements. Mr. Donahue offered to review the site with the City Engineer and make a recommendation regarding the contract at a future meeting. President Erickson suggested EDA members join staff to physically view the Autohaus site. Motion was made by Commissioner Wehling, seconded by Commissioner Williamson, tabling approval of the Addendum until May 10, 1993, and directing staff to prepare a recommendation regarding storm sewer requirements. All present voted in favor. Motion carried. 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 9:47 p.m. Respectfully submitte_d, Valerie Leone City Clerk New Hope EDA Page 5 April 26, 1993 Approved EDA Minutes Meeting //7 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 May 10, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 462 Item 4 MOTION Item 4 IMP. PROJECT 462 Item 5 MOTION Item 5 JOINT AGREEMENT Item 6 President Erickson called the meeting of the Economic Development Authority to order at 10:46 p.m. Present: Erickson, Enck, Wehling, Otten, Williamson Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of April 26, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Motion Approving Supplemental Corrective Action Design Workplan for 42nd/Nevada AVenues Soil Contamination Cleanup (Improvement Project No. 462). Motion was made by Commissioner Enck, seconded by Commissioner Otten, approving supplemental corrective action design workplan for 42nd/Nevada Avenues soil contamination cleanup (Improvement Project No. 462). All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Approval of Bid Submitted by Bergerson-Caswell, Inc. for Groundwater Quality Monitoring Well Construction for 42nd/Nevada Avenues Soil Cleanup Project (Improvement Project No. 462) in the amount of $6,982.00. Motion was made by Commissioner Williamson, seconded by Commissioner Enck, to accept the bid submitted by Bergerson-Caswell, Inc. for groundwater quality monitoring well construction for 42nd/Nevada Avenues Soil Cleanup Project {Improvement Project No. 462) in the amount of $6,982.00. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 6, Resolution Approving Joint and Cooperative Agreement Between North Metro Business Retention and Development Commission and City of New Hope; Authorizing the EDA's President and Executive Director to Sign. Mr. Donahue explained that New Hope has been invited to join the Cities of Blaine, Brooklyn Park and Brooklyn Center in a joint effort aimed at obtaining comprehensive information about the needs of our business community for the purpose of retaining those businesses in the future by serving them better and meeting their needs. The service to be provided this year will be a survey of the City's largest 100 businesses. Commissioner Enck asked whether there is any cost commitment on the City's part. New Hope EDA Page 1 May 10, 1993 EDA RESOLUTION 93-08 Item 6 ADJOURNMENT Mr. Donahue stated if the City wishes to stay with the Commission, then there may be a future assessment of approximately $30,000 per year. Decisions can be made next fall regarding continuation for 1994. Commissioner Wehling inquired whether this will provide adequate time to complete the survey. Mr. Donahue stated the survey of 100 businesses is part of the project which will be completed at no cost even if it continues into 1994. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING JOINT AND COOPERATIVE AGREEMENT BETWEEN NORTH METRO BUSINESS RETENTION AND DEVELOPMENT COMMISSION AND CITY OF NEW HOPE; AUTHORIZING THE EDA'S PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN". 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, 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. Motion was made by Commissioner Williamson, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 10:49 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 May 10, 1993 Approved EDA Minutes Meeting //8 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 May 24, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 467 Item 4 New Hope EDA Page 1 President Pro Tem Enck called the meeting of the Economic Development Authority to order at 7:36 p.m. Present: Absent: Enck, Wehling, Otten, Williamson Erickson Motion was made by Commissioner Williamson, seconded by Commissioner Wehling, to approve the EDA minutes of May 10, 1993. All present voted in favor. Motion carried. President Pro Tem Enck introduced for discussion Item 4, Discussion Regarding Addendum to City of New Hope Development Contract for Autohaus Addition (Improvement Project No. 467). Mr. Dan Donahue, City Manager, stated this matter was tabled at the April 26th EDA Meeting to allow the City Engineer and staff to review the storm sewer requirements included in the plan. Autohaus is requesting release of the $26,000 development bond so that the funds can be utilized for improvements to the front of the site. Mr. Donahue stated the property has been reviewed and if Autohaus does not go forward with the improvements, then staff recommends releasing the letter of credit and amending the development contract. He pointed out that the letter of credit guaranteed a portion of work on the front part of the property. Mr. Mark Hanson, City Engineer, indicated the southwest bank of the wetland is eroding and should be corrected prior to releasing the letter of credit. He noted the presence of a four foot deep gully on the edge of the pond. Mr. Tom Oestreich of Autohaus questioned the costs and options to remedy the erosion problem. Mr. Hanson stated costs depend on the method of landscaping varying from black dirt and grass seed to fabric and sodding. He estimated a price range between $1,000 to $1,500. President Pro Tem Enck asked if the City should be concerned with water quality as well as water quantity issues. Mr. Hanson stated the $26,000 financial guarantee for the improvement contained $4,500 to build a treatment pond to collect the water off the newly developed lot along with the northerly portion of the bus garage to treat the storm water before it discharged into the wetland. He stated May 24, 1993 MOTION Item 4 CO-OP NORTHWEST REVITALIZATION CORPORATION Item 5 New Hope EDA Page 2 since the lot has not been improved and is still a grassy area the treatment pond is no longer necessary. Mr. Donahue stated the financial guarantee could be reduced to cover the erosion problems only. Mr. Steve Sondrall, City Attorney, indicated that if Autohaus desires to develop the rear lot in the future, they would be required to enter a new development contract with the City and furnish a new financial guarantee. Commissioner Williamson stated the back yard has been improved tremendously since Autohaus acquired the property. She emphasized the need to make the public aware that the area is not a dumping ground. She questioned whether the drainage project cost should be partially funded by the school district. Mr. Hanson stated Autohaus could have petitioned the City to build the storm sewer and the School District may have been assessed; however, as part of negotiations when the land was purchased, Autohaus elected to build the storm sewer and pond. Mr. Sondrall clarified that the School District could not be assessed if Autohaus does the sewer work privately. He stated assessments are only possible through public improvements. President Pro Tem Enck suggested referring the issue to staff and authorizing reduction of development bond retaining an amount necessary to guarantee correction of the erosion problems only. Mr. Sondrall recommended drafting an amendment to the development contract to clearly record the amendments. He stressed the importance of addressing specific items such as the elimination of the bituminous paving requirement which relieves Autohaus of their bonding obligation for sewer improvements. He stated the amendment can also address the existing issue of the erosion problem and whether any funds need to be retained to ensure its completion. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, directing staff to draft amended development contract for consideration at June 14, 1993, EDA Meeting. Amendments shall 1) relieve Autohaus of storm sewer improvements in rear of property which affects bonding requirement; and 2) add requirement regarding correction of wetland erosion problem. All present voted in favor. Motion carried. President Pro Tem Enck introduced for discussion Item 5, Resolution Establishing the New Hope EDA Support for Co-op Northwest Community Revitalization Corporation, F/K/A New Hope Community Revitalization Corporation. President Pro Tem Enck explained that the New Hope Community Revitalization Corporation was originally established as a non-profit entity for construction of the Winnetka West housing facility. City staff is proposing that this non-profit entity now be expanded to include all five May 24, 1993 EDA RESOLUTION 93-09 Item 5 OTHER BUSINESS TRAIN WHISTLES ADJOURNMENT cities involved with the CO-OP Northwest Community Revitalization Corporation. The five-city non-profit organization would have access to federal housing funds through a competitive grant process that otherwise would be unavailable to local units of governments. Commissioner Williamson introduced the following resolution and moved its adoption: "RESOLUTION ESTABLISHING THE NEW HOPE EDA SUPPORT FOR CO-OP NORTHWEST COMMUNITY REVITALIZATION CORPORATION, F/K/A NEW HOPE COMMUNITY REVITALIZATION CORPORATION." The adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote being taken thereon; the following voted in favor thereof: Otten, Enck, Williamson, Wehling; and the following voted against the same: None; Absent: Erickson; whereupon the resolution was declared duly oassed and adopted, signed by the president which was attested to by the executive director. Mr. Donahue informed the EDA of a request to ban train whistles during certain hours when crossing Boone and Winnetka Avenues. He commented that the City of Plymouth held public hearings and adopted an ordinance prohibiting sounding of train whistles and horns between the hours of 10 p.m. and 7 a.m. in a certain area. President Pro Tern Enck reported that railroads are controlled by federal statutes and certain safety regulations require sounding of whistles. He asked staff to investigate such regulations and report findings at a future Council Meeting. Mr. Donahue asked whether the EDA had been approached with similar requests. The EDA indicated they had not been contacted by any residents regarding train whistles. Safety issues were briefly discussed. 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 8:02 p.m. Valerie Leone City Clerk New Hope EDA Page 3 May 24, 1993 Approved EDA Minutes Meeting #9 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 June 14, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 467 Item 4 EDA RESOLUTION 93-10 Item 4 ADJOURNMENT President Erickson called the meeting of the Economic Development Authority to order at 8:41 p.m. Present: Erickson, Enck, Wehling, Otten, Williamson Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of May 24, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Authorizing Addendum to City of New Hope Development Contract for Autohaus Addition and Reduction of Subdivision Bond (Improvement Project No. 467). The addendum will delete the storm sewer improvements at the rear of the property and the paving of the body shop collision repair storage area of the Autohaus property. This will allow for a reduction of the $26,280 bond to $1,000. The EDA briefly discussed whether $1,000 was sufficient to correct the wetland erosion control problem. Mr. Hanson, City Engineer, confirmed that the amount is adequate. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT FOR AUTOHAUS ADDITION". 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, Enck Williamson, 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 Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:42 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page I June 14, 1993 Approved EDA Minutes Meeting #10 CALL TO ORDER ROLL CALL APPROVE MINUTES CONSULTANT AGREEMENT Item 4 MOTION INDEMNIFICATION AGREEMENT Item 5 OFFICIAL FILE COPY CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 July 26,1993 President Erickson called the meeting of the Economic Development Authority to order at 8:56 p.m. Present: Absent: Erickson, Enck, Otten, Williamson Wehling Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of June 14, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Motion Approving Consultant Agreement to Develop Multi-Family Housing Policies (Project No. 510). Mr. Dan Donahue, City Manager, explained that staff has identified a need to develop some policies regarding multi-family housing improvements in the City and to start initiating some projects in this area. He recommended retaining consultant services of Gary Stout, Public-Private Ventures, Inc., to assist staff in formulating these policies and to assist staff in analyzing funding requests. Mr. Donahue reported that the City has 3,839 multi-family living units in the City comprising 45.2% of all housing (8,500 total). There are 174 buildings containing between 4 and 220 units. Also, 90.2% of the buildings were built prior to 1970 and a third of them are at least 30 years old. The perception among staff and service personnel such as fire and police is that apartment buildings impact the city in many subtle ways most notably in people's perception of good neighborhoods. Mr. Donahue indicated he feels it is very important for the City to address multi-family issues particularly addressing future needs and requests, Utilization of a consultant will cost approximately $2,500. Motion was made by Commissioner Enck, seconded by Commissioner Williamson, approving the Consultant Agreement with Public-Private Ventures, Inc. to develop multi-family housing policies. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Motion Approving Ardel Engineering License and Indemnification Agreement (Project No. 474). New Hope EDA Page I July 26, 1993 The City is in the process of demolishing the Electronic Industries Building at 7516 42nd Avenue North. The original specifications called for the removal of all paved areas from the site. Ardel Engineering, located just east of this site at 7500 42nd Avenue, has requested that the City leave a 20-foot strip of asphalt along the front property line and the westerly curb-cut so that their employees will not have to utilize the curb-cut directly adjacent to the bridge. Ardel feels the entrance/exit adjacent to the bridge is dangerous and wishes to avert any potential traffic accidents. The City is agreeable with leaving an asphalt strip and the westerly curb- cut in place so long as Ardel agrees to maintain the strip (plow) and indemnify and hold harmless the City. The City Attorney has drafted an agreement which establishes these terms and allows the City to terminate the agreement and remove the asphalt within 10 days written notice. MOTION Motion was made by Commissioner Enck, seconded by Commissioner Otten, approving the Ardel Engineering License and Indemnification Agreement. All present voted in favor. Motion carried. CO-OP NORTHWEST Item 6 President Erickson introduced for discussion Item 6, Resolution Appointing City Manager as New Hope's Public Official Sector Representative on the Board of CO-OP Northwest Community Revitalization Corporation. The New Hope Community Revitalization Corporation was originally established as a non-profit entity for construction of the Winnetka West housing facility. Staff proposed that the non-profit entity be expanded to include all 5 cities involved with CO-OP Northwest so that the organization would have access to Federal housing funds through a competitive grant process that would otherwise be unavailable to local units of government. On May 24th the EDA approved a resolution establishing support for the CO-OP Northwest Community Revitalization Corporation. The By-Laws of the CO-OP Northwest Community Revitalization Corporation state that Board membership shall consist of three sectors: the public sector, the Iow/moderate income sector, and the private sector. One-third of the Board, five members, are to be elected public officials or their representatives. The Cities of New Hope, Crystal, Brooklyn Park, Brooklyn Center, and Robbinsdale are to each select one person to serve on the Board. The resolution will appoint Daniel Donahue, City Manager, as New Hope's public official sector representative on the Board. EDA RESOLUTION 93-11 Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPOINTING CITY MANAGER AS NEW HOPE'S PUBLIC OFFICIAL SECTOR REPRESENTATIVE ON THE BOARD OF THE CO-OP NORTHWEST COMMUNITY REVITALIZATION CORPORATION". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten and upon voted being taken thereon, the following voted in favor: Erickson, Enck, Otten, and Williamson; and the following voted against: None; Absent: Wehling; whereupon the resolution was New Hope EDA Page 2 July 26, 1993 ADJOURNMENT duly passed and adooted, signed by the president which as attested to by the executive director, Motion was made by Commissioner Otten, seconded by Commissioner Enck, to adjourn the EDA 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 3 July 26, 1993 Official File Copy Approved EDA Minutes Meeting //11 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 August 9, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES BROADWAY LANEL Item 4 EDA RESOLUTION 93-12 Item 4 ADJOURNMENT President Pro tern Enck called the meeting of the Economic Development Authority to order at 7:07 p.m. Present: Absent: Enck, Otten, Williamson, Wehling Erickson Motion was made by Commissioner Otten, seconded by Commissioner Williamson, to approve the EDA minutes of July 26, 1993. Voting in favor: Enck, Otten, Williamson; Abstained: Wehling; Absent: Erickson. Motion carried. President Pro tem Enck introduced for discussion Item 4, Resolution Relating to a Redevelopment Agreement with Broadway LaNel, a Limited Partnership; Waiving the HRA Lien Maturity Under the Redevelopment Agreement in Connection with the Issuance of Refunding Bonds by the City and Authorizing Execution of Various Documents in Connection with Such Refunding Bonds. Commissioner Williamson introduced the following resolution and moved its adoption: "RESOLUTION RELATING TO A REDEVELOPMENT AGREEMENT WITH BROADWAY LANEL, A LIMITED PARTNERSHIP; WAIVING THE HRA LIEN MATURITY UNDER THE REDEVELOPMENT AGREEMENT IN CONNECTION WITH THE ISSUANCE OF REFUNDING BONDS BY THE CITY AND AUTHORIZING EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION WITH SUCH REFUNDING BONDS". 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: Enck, Otten, Wehling and Williamson; and the following voted against: None; Absent: Erickson; whereupon the resolution was duly oassed 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 7:09 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 1 August 9,1993 Approved EDA Minutes Meeting//12 CALL TO ORDER ROLL CALL APPROVE MINUTES PROJECT 510 Item 4 New Hope EDA Page 1 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 September 13, 1993 President Erickson called the meeting of the Economic Development Authority to order at 9:36 p.m. Present: Erickson, Enck, Otten, Williamson, Wehling Motion was made by Commissioner Enck, seconded by Commissioner Otten, to approve the EDA minutes of August 9, 1993. Voting in favor: Enck, Otten, Williamson, Wehling; Abstained: Erickson. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving Multi-Family Housing Policies (Project #510). Mr. Kirk McDonald, Management Assistant/Community Development Assistant, indicated at the EDA's authorization staff has been meeting with Gary Stout to formulate multi-family housing policies. Mr. Gary Stout, Public-Private Ventures, Inc., introduced himself and pointed out that many cities are attempting to stabilize areas of the city and maintain property values. He stated in New Hope there are approximately 3800 rental units and generating several hundred thousand dollars worth of funds would allow, the City to direct $100 to $200 per unit. He emphasized the importance of the City realizing how to use funds effectively and recommended utilizing loans as the financing method instead of grants, Mr. Stout informed the Council that his research included investigating prior federal loan requests to determine recurring problems. The proposed policy attempts to eliminate similar problems, He continued by stating many owners are having difficulty obtaining private capital necessary to rehabilitate and maintain multi-family housing units and the City has a desire to provide assistance. The goal is to meet public policy needs in the housing and human services area. Mr. Stout reviewed the recommended policy to be used by the EDA to evaluate potential future requests for assistance by rental unit owners. The sixteen items included funding amounts, type of funding, required bids for work, repayment provisions, matching funds, etc. The EDA complimented Mr. Stout on his thorough report. Commissioner Williamson questioned the definition of multiple dwelling and asked whether the policy would apply to condos, townhomes, twin-homes, etc. Mr. Stout explained that the policy relates to rental multiple unit housing. He stated the financing problems are specific to investment properties. September 13, 1993 EDA RESOLUTION 93-13 Item 4 ADJOURNMENT Commissioner Enck questioned the funding source(s), Mr. Donahue, City Manager, stated he will proposed to utilize funds from the existing EDA account. He explained that of the tax increment district monies five to ten percent is designated for administrative purposes and a portion of that is maintained in the EDA. account. Commissioner Williamson asked whether the City would ~Jtilize Mr. Stout's services when funding requests are made by rental multi-family property owners. Mr. Donahue responded that the City may'Wish to retain Mr. Stout's services on an as-needed basis to assist the CiW in analyzing each specific project, Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING MULTI-FAMILY HOUSING POLICIES {PROJECT #510)". 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: Erickson, Enck, Otten, and Williamson; and the following voted against: None; Absent: None; whereupon the resolution was 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 Williamson, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:53 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 September 13, 1993 Approved EDA Minutes Executive Session CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 October 11, 1993 CALL TO ORDER ROLL CALL DOYLE/LEE PROPERTY 5425 & 5501 BOONE AVENUE NORTH #493 ADgOURNNENT The New Hope Economic Development Authority met in executive session pursuant to due call and notice thereof; President Erickson called the meeting to order at 9:55 p.m. Present: Erickson, Williamson, Wehling, Otten Absent: Enck Also Present: Steve Sondrall, Mark Hanson, Dan Donahue, Kirk McDonald, Valerie Leone The EDA discussed the litigation/settlement strategy in connection with the eminent domain proceedings on the Doyle and Lee Bros. properties. These properties are being acquired to construct the Carebreak Adult Day Care Center (#493). The EDA discussed the award and soil correction costs and precluded that based on the soil costs the Doyle award was not reasonable and the City Attorney was authorized to file an appeal. The EDA found the Lee Bros. award to be reasonable and did not recommend an appeal. Motion was made by President Erickson, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned its Executive Session at 10:08 p.m. Respectful ly submitted, Val erie Leone City C1 erk Approved EDA Minutes Meeting//13 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 October 11, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES Plan 85-1 Item 4 EDA RESOLUTION 93-14 Item 4 SUSPEND MEETING RECONVENE MEETING IMP. PROJ. 493 Item 5 EDA RESOLUTION 93-15 President Erickson called the meeting of the Economic Development Authority to order at 9:00 p.m. Present: Absent: Erickson, Otten, Williamson, Wehling Enck Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of September 13, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving 1993 Amendment to Redevelopment Plan 85-1 and Tax Increment Financing Plan 85-1 and Requesting the Approval of the City Council. Commissioner Williamson introduced the following resolution and moved its adoption: "RESOLUTION APPROVING 1993 AMENDMENT TO REDEVELOPMENT PLAN 85-1 AND TAX INCREMENT FINANCING PLAN 85-1 AND REQUESTING THE APPROVAL OF THE CITY COUNCIL". 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, Wehling, Otten, and Williamson; and the following voted against: None; Absent: Enck; whereupon the resolution was duly oassed and adopted, signed by the president which was attested to by the executive director. The EDA meeting was suspended at 9:01 p.m. The EDA meeting was reconvened at 9:50 p.m. President Erickson introduced for discussion Item 5, 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 the Doyle/Lee Eminent Domain Proceedings (#493). Commissioner Wehling 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 LITIGATION/SETTLEMENT STRATEGY ON THE DOYLE/LEE EMINENT DOMAIN PROCEEDINGS". 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: Erickson, Wehling, Otten, and Williamson; and the following voted against: None; Absent: Enck; whereupon the resolution was duly passed and adopted, signed by the president which was attested to by the executive director. New Hope EDA Page 1 October 11, 1993 MULTI-FAMILY DWELLINGS Item 6 ADJOURNMENT President Erickson introduced for discussion Item 6, Discussion of Ordinance Regarding Conduct and Licensing of Multi-Family Rental Dwellings. Due to the late hour it was the consensus of the EDA to discuss this item at a future EDA Meeting. 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 9:53 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 October 11, 1993 Approved EDA Minutes Meeting #14 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 October 25, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES BROADWAY VILLAGE IMPROVEMENTS Item 4 President Erickson called the meeting of the Economic Development Authority to order at 7:28 p.m. Present: Erickson, Enck, Williamson, Wehling, Otten Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA regular and executive session minutes of October 11, 1993. Voting in favor: Erickson, Williamson, Wehling, Otten; Abstained: Enck. Motion carried. President Erickson introduced for discussion Item 4, Consideration of Proposal by Lang Nelson for Community Center Project at Broadway Village Apartments and Purchase of Former Gas Station Site at 62nd/West Broadway. Mr. Donahue stated Paul Brewer of LaNel Financial Group will make a formal presentation requesting the City's participation in the Community. Center remodeling at the Broadway Village Apartments. It is also the request by the City for LaNel to proceed with acquisition of the gas station property at the corner of 62nd and West Broadway. He noted the tax increment plan and the development district were recently expanded to include the Broadway Village Apartments. The City could loan money through excess tax increment collected on the Anthony James Apartments with a payback beginning in the year 2003. Mr. Paul Brewer described the community center and street lighting projects proposed for Broadway Village Apartments at 6046 West Broadway. The community center building would be attached to the existing indoor swimming pool building and would be approximately 2200 square feet in size. The older building will be remodeled to include not only the swimming pool, but also an exercise area with locker rooms, lavatories, showers and saunas as well as a guest room for use by guests of the residents. The new structure will be attached to the south side of the building and will contain a reception area, community office suite for management staff, billiards room, lavatories, party room with kitchen and living room area with a fire place. The new community center will be open to the residents and used as a meeting and social center for this adult community. The project will also involve the replacement and installation of a comprehensive street lighting system that will not only upgrade and improve the appearance of the community, but also provide better street lighting and security for the entire site. Mr. Brewer stated the total cost of the project is estimated at $285,000 (community center $200,000 and street lighting $85,000). The funding request is for a $142,500 loan from the City. New Hope EDA Page 1 October 25, 1993 MOTION ADJOURNMENT President Erickson inquired whether the Community Center would be available to persons who do not reside at the apartment complex. Mr. Brewer expressed his willingness to coordinate facility usage by the New Hope Senior Club. President Erickson asked if LaNel intends to purchase the former gas station property at 62nd Avenue and West Broadway. Mr. Brewer confirmed that it is part of the project and they plan to demolish the building and landscape the corner. He noted Super America is currently in the process of removing contaminated soils on the site. Commissioner Enck questioned the estimated cost and asked if any quotes have been obtained. He also asked if the prices include the cost of furniture. Mr. Brewer indicated no firm quotes have been obtained but they do not expect the project cost and furniture to exceed $285,000. The EDA discussed the purchase of the gas station property. Mr. Donahue indicated no plan is in place but LaNel may purchase the land from Super America or the EDA may purchase the property and resell it to LaNel. Motion was made by Commissioner Enck, seconded by Commissioner. Wehling, authorizing the City Manager to enter negotiations with Broadway LaNel for financing the improvements at the Broadway Village Apartments and purchasing the property at 62nd/West Broadway. 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 7:43 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 October 25, 1993 Approved EDA Minutes Meeting #15 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 November 8, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES PRESENTATION COMMUNITY BUSINESS SURVEY Item 4 ADJOURNMENT President Erickson called the meeting of the Economic Development Authority to order at 7:28 p.m. Present: Absent: Erickson, Otten, Enck, Wehling Williamson Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of October 25, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Presentation by Community Resource Partnerships, Inc. Regarding Summary Report on New Hope Community Business Survey. Mr. Earl Netwal, Community Resource Partnerships, Inc., reviewed the summary report of data generated from 74 companies in New Hope. He noted companies view the survey as a message from the city that it cares about local businesses. He stressed that in order to encourage business retention and expansion, communities must be in a position to assist existing companies with the problems and opportunities they encounter. The program consists of four components: data collection, data analysis, strategic recommendations, and marketing/promotional programs. Mr. Donahue reported the preliminary survey and analysis were conducted at no cost to the City. At this time the EDA must decide whether it wishes to continue with the project at a cost of $30,000. He noted New Hope is one of the four cities who are participating with "Community Partners". It was the consensus of the EDA to consider the proposal at a future work session. 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 1 November 8, 1993 Approved EDA Minutes Meeting #18 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPiN COUNTY, MINNESOTA 55428 November 22, 1993 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 513 Item 4 IMP. PROJECT 505 MHFA LOAN AGREEMENT FOR 5009 WINNETKA Item 5 President Erickson called the meeting of the Economic Development Authority to order at 7:51 p.m. Present: Absent: Erickson, Otten, Enck, Wehling Williamson Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of November 8, 1993. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Loan/Grant Agreements for Broadway Village Community Center Expansion (Improvement Project No. 513). President Erickson reported that staff is not prepared to discuss this item at tonight's meeting. President Erickson introduced for discussion Item 5, Resolution Approving Minnesota Housing Finance Agency Publicly-Owned Neighborhood Land Trust Program Loan Commitment Agreement, Improvement Project No. 505. Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, explained that in the summer of 1993 the MHFA held a competitive grant process for what was called the Minnesota Land Trust Program. The City of New Hope was one of several cities awarded a grant. The purpose of the grant is to provide funds to provide housing at a reasonable cost to Iow and moderate-income residents in the City. Staff proposes to utilize this money as one of the tools in the acquisition/demolition and construction of a new building at 5009 Winnetka. The City is in the process of acquiring this property and hopes to construct a new handicapped accessible two-family dwelling unit on the site for resale to Iow/moderate income residents. The plan is to use this $45,000 MHFA land trust money to acquire the property and to use HOME funds to build the structure. Mr. McDonald stated the City has already been provided the grant but it needs to approve the loan commitment before the funds can be disbursed. He stated land trust means that the City would actually own the land and even though the building will be sold the City would maintain a long-term ground lease for the property. He explained that the sale agreement would contain language requiring the owner to maintain the grounds. The EDA discussed liability issues as a result of the City remaining the property owner. New Hope EDA Page 1 November 22, 1993 EDA RESOLUTION 93-16 Item 5 ADJOURNMENT Mr. Steve Sondrall, City Attorney, stated the City will require that it is an additional insured relating to insurance coverages. He stated he reviewed the documents and the City will continue to own the underlying fee on the property but it has the right to issue our own lease to a leasee for up to a period of 99 years. He spoke regarding repayment of the loan. He ~tated the City should be able to work out terms as it proceeds in the program. He stated by entering the loan commitment the only exposure to the City is the possibility of returning the money if the City elects to withdraw from the program. It was noted that the cost of the building will be lower due to the fact that the City will remain the land owner and the property will be valued based on building only. Commissioner Enck expressed concern regarding the value of the $45,000 grant if there is a long-term commitment to the City to maintain the property for a minimum of 20 years. He noted the potential expense of staff time to ensure that the tenant is adhering to the lease. He concluded by agreeing to the loan commitment but suggested that staff review the program and voluntarily withdraw if it proves not to be advantageous to the City. Mr. Sondrall commented that the documents indicate the City will own the land, then it may lease the land to a non-profit organization who in turn can provide affordable housing to Iow/moderate income persons. Commissioner Enck introduced the following resolution and moved its adoption: RESOLUTION APPROVING MINNESOTA HOUSING FINANCE AGENCY PUBMCLY-OWNED NEIGHBORHOOD LAND TRUST PROGRAM LOAN COMMITMENT AGREEMENT". 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, Enck, Wehling, and the following voted against the same: None; Absent: Williamson; whereupon the resolution was duly oassed and adooted, signed by the president which was attested to by the executive director. 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 8:10 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 November 22, 1993