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