1990 EDAC~TY OF NE~ ~PE
4401 XYIC~ AV~3E ~
~ O0[~TY, ~ 55428
Jar~mary 8, 1990
City F~ll, 8:00 P.M.
APPROVE
MINUTES OF
DEC. 26, 1989
Item 4
President Erickson called the meeting of the Economic Development
Authority to order at 8:00 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamson
Motion by C~umissioner Enck, seconded by Commissioner Otten to
approve the EDA minutes of December 26, 1989. All present voted in
favor.
President Erickson introduced for discussion Item 4, Consideration
of Request by Autohaus/Thomas Boettcher to Assist in Fim~ncing the
Acquisition of Property Located at 7675 42nd Avenue North (New Hope
Animal Hospital).
Mr. Dan Donahue stated one possibility for financing is the creation
of a tax increment project. He stated the EDA could consider the
tax increment generated by the project as security. He coit~nted
that at this time the market value of the Autohaus property is
unknown. Mr. Donahue stated upon co~L~letion of the development
project (including the Animal Hospital property and School District
property) based on an estimated projection there may be $10,000 of
increment.
Mr. Thomas Boettcher was recognized and stated he does not believe
he could take a second or third mortgage as security. He stated he
is willing to put additional capital down on the property amounting
between $45-50,000. He stated the remaining $100,000 loan would be
set for an eight-year term or possibly six years. He commented that
he is considering renting the front part of the building for another
year to generate rental income.
Mr. Donahue stated the TIF project would only be used as a back-up;
if Mr. Boettcher cannot carry out the terms of the loan then this
~mrantee would be available.
C~,,~,~ssioner Enck co~mented that Mr. Boettcher's life insurance
policy would only be good only if he passes away and if the
premiums are paid in full for the entire period. He stated if
Autohaus goes out of business the life insurance policy would be of
no value.
Page 1
January 8, 1990
Mr. Donahue stated bond counsel is necessary to discuss whether this
project is feasible. He stated he would like to meet with Mr. --~
Boettcher to address the financing arrang~t package. He stated
he also must meet with the City Attorney regard~ legal issues.
Motion made by Commissioner Enck, seconded by C~Lu~,4ssioner Otten to
auth~r~ the Executive Director to p ~rco=~4. All present voted in
favor.
President Erickson clarified that the EDA has given the Executive
Director direction to proceed and the EDA is willing to enter into
a type of financial arrangement with Mr. Boettcher.
Executive Director, Dan Donahue, stated that he will present the
details to the EDA on January 22, 1990.
Motion w-as made by Conmtissioner Enck, seconded by C~m¥,4ssioner Otten
to adjourn the meet/r~. All present voted in favor. The New Hope
EDA adjourned at 8:25 p.m.
9respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 2
January 8, 199
Janaar~ 22, 1990
City I~a]], 10:02 P.M.
APPROVE
MI~3~ OF
JAN. 8, 1990
7180 42ND AVE N
It~ 4
President Erickson called the meeting of the Economic Develc~m~nt
Authority to order at 10:02 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamscn
Motion by Commissio~ L'Herault, seconded by C~,,,dssioner Enck to
approve the RDA minutes of Jar~ary 8, 1990. All present voted in
favor.
President Erickson introduced for discussion Item 4, Consideration
of Vacation of Right-of-Way Located at 7180 42nd Avenue North
(Paro' s Pub).
City Attorney, Steve Sondrall, stated this itsm involves th~ section
of property which can essentially be vacated because of the
realignment of Nevada Avenue. He stated thmre has been difficulty
with the Paro's property owner rega~ whether a settlement can be
reached in either of the street widening cond~m~-~tion or the taking
of the parcel.
Mr. Sondrall suggested continuing the item until February 12, 1990,
to allow time for further discussion with Mr. Lasky, the property
owner.
Motion made by Cu,,missicner Enck, seconded by C~ssioner Ottan to
~ble c~ideration of vacat~c~ of right-of-way located at 7180 42nd
Av~-~e N~rth (Paro's Pub) until February 12, 1990. All present
voted in favor.
Motion w~s rode by C~,~aissicner Enck, seconded by C~,~,,~ssioner
Williamsc~ to a~curn the meeting. All present voted in favor.
The New Hope E~A adjourned at 10:07 p.m.
Valerie Leone
City Clerk
New Hope EDA
Page 1
Jarg~ry 22, 1990
4401X!/II~A~I~E~-I
February 12, J2990
City F~all, 9:30 P.M.
APPROVE
MI~J~ ~
JAN. 22, 1990
7180 42ND AVE N
It~5
New Hope FDA
Page 1
President Erickson called the meeting of the Economic Development
Authority to order at 9:30 p.m.
Present: Erickscn, L'Herault, Otten, Enck, Williamson
Motion by C~,~,.~ssioner Enck, seconded by C~m.~[ssioner L'Herault to
approve the EDA minutes of January 22, 1990. All present voted in
favor.
Mayor Erickson introduced Item 4, Request by Creame~ to Consider
Expansion of Manufacturing Facilities at 7300 36th Avenue North. He
stated the item will be postponed until February 26, 1990, as the
requestor was not prepared for a presentation tonight.
President Erickson introduced for discussion Item 5, Consideration
of Vacation of Right-of-Way Located at 7180 42nd Avenue North
(Paro's Pub).
City Attorney, Steve Sondrall, briefly updated the C~tssion
regarding the matter.
Mr. Sondrall commented that he has been unable to hold a discussion
with Mr. David Iask-y regarding either cond~m-~tion actions currently
pending on Lasky's property because he has employed services of an
attorney which prevents direct c~u~unication.
Motion made by C~u~issioner Enck, seconded by ~ioner Otten to
~hle c~iderati~ of vacatic~ of right-of-%a~ located at 7180
42n~ Avenue North (Paro's Pub) until February 26, 1990. All present
voted in favor.
Motion was made by C~,~,dssioner Enck, seconded by C~,..,.~ssioner
Otten to adjourn the meet/r~. All present voted in favor. ~ne New
Hope EDA adjourned at 9:37 p.m.
Valerie Leone
City Clerk
February 12, 1990
CITY~~E
4401X~I~AV~]E~
~/NOO[~TY, ~55428
February26, 1990
(~il_-~J-~11, 7:30 P.M.
M~n~S OF
FEB. /2, 1990
New Hope
Page 1
President Erickson called the meeting of the Economic Development
Authority to order at 7:30 p.m.
Present: Erickson, L'Herault, Enck
Absent: Otten, Williamson
Motion by Cc~,,~,~ssioner Enck, secor~ed by President Erickson
approve the EDA minutes of February 12, 1990. All present voted in
favor.
Mayor Erickson introduced Itsm 4, R~quest by Creamettes to Co~sider
Expansion of Manufacturing Facilities at 7300 36th Avenue North.
Mr. Donahue stated that representatives fl-cm~ the Creamette Company
are present. He stated they are asking the City to consider a mjor
expansion project. He explained that the reason the item is before
the EDA rather than the Planning C~,,~dssion at this time is that
Creamette COmpany r~c~s advance consideration by the E~A. He
explaLned that he ba~ met with Creamette's and suggested that they
make a presentation of their proposal to the EDA.
Mr. Donahue stated the company is also ask/rig that the City consider
sc~e development incentives. He expla~ that they are reviewing a
few different locations for their plant expansion.
Mr. Sandy Ackerb~, Architect for the proposed project, and Mr.
Steve Favro, Director of Manufacturing of Borden Pasta Group, were
recognized and presented drawings of the proposed expansion. Also
in atter~nce was Mr. Don Litterer, Operations and Plant Engineer.
Mr. Favro explained that pasta sales represent a large portion of
the Borden Company's 8 billion dollar sales. He explained that the
New Hope facility is the sixth largest employer in the city and with
the proposed expansion it may be the fifth largest employer. He
stated the existing plant is the fourth largest pasta manufacturer
in the United States and with the expansion it would be the second
or third largest plant in the U.S.
Mr. Ankerbergstatedthepresent land areahasapproximately 709,000
square feet. The existingbuilding is approximately 176,000 square
feet. He explained that the phase I addition would add 65,000
February 26, 1990
New Hope EDA
Page 2
sc~,~e feet to the plant and ~ II add~tic~ would add 95,000
square feet. He explained that even though the plant is of a large
size it employs a limited amount of employees due to the nature of
the production facilities. They currently have 160 people employed
and with the expansion may e~ploy 40-50 more people. He stated the
number of employees has an affect on the amount of parking. He
Mr. Ackerberg Cu~ented that 185 million pounds of pasta are
~y producs~ and with the expansion it would be ~ to
300 million pounds.
Mr. Favro provided the Council with statistical information. He
explained that the Creamette C=m~many paid $177,000 in real estate
taxes for 1989; has a current New Hope payroll of $3,500,000;
employs 160 employees; anticipates adding 40-50 employees; has an
anm~l volume of raw materials and services purdmased frc~ local
vendors of $10,500,000; has an approximate current build~ng size of
177,000 s~,~e feet; and with the anticipated additior~ (both Phase
I and Phase II) would enlarge it by 159,525 s~,a~e feet. He also
cu~,ented that the Creamette Company generates a substantial amount
of business for local restaurants, hotels and transportation vendors
resulting frc~ visits to the local plant from out-of-state staff,
technical personnel and visitors.
President Erickson inquired of the projected timetable for the
expansion(s). Mr. Ackerberg stated Phase I would begin immediately/
He explained that the east dock doors and the northeast packaging
truck traffic on the east side of the building adjacent to the
residential property. All the truck traffic would be confined to
the south and west. He stated Phase II would begin two to four
years following Phase I. He stated Phase III is a long-range plan
and would encompass asking the City's assistance in providing the
site and relocating the occupant of the site (Rainbow Inc).
Mr. Ack~ c~m~ted that the New Hope code restricts building
coverage ex~ forty percent of the lot area. He explained that
the Phase I and Phase II a__~9~tions would ex~eed the code requirement
Mr. Ac~ next discussed the parking situation and referred to
the code re~ement. He stated 100 parking stalls is the maxiaum
number necessary based on the number of Creamette's employees. He
cuum~zfced that he could provide proof of parking availability for an
a~{tional 224 vehicles. ~ would assure the City t_hat there is
adequate room for parking in the event that the building use changes
single or double decked.
He stated the zoning code requires 35 percent ~£een area coverage.
A varianoe would be required since they are short by one percent.
February 26, 1990
Mr. Ackerberg Creamette's would like the City to assist in
relocating the sewer line through tax increment financing.
C~,,dssioner Enck o~,,,ented that it appears Creamette's would ~
financial assistance (TIF), a parking lot variance, and eventually
sc~e assistance in land acquisition of the Rainbow Property.
Mr. ~-kerberg stated there are many benefits of the expansion
(Creamette's would continue to be in business in New Hope, would
continue to generate a substantial payroll, would continue to pay
real estate taxes, would provide additional employment, plus the
other ancillary benefits which flow fr=~ tb~ operation which cannot
be measured in dollars and cents).
Mr. Favro informed the ~ that he r~c~s an indication of whether
the City would consider Creamette's expansion project pertaining to
Pba-~e I, Phase II, assistance in obtaining the adjacent property,
and financial assistance. Mr. Favro c~m~nted that the only other
option would be for Creamette's to relocate. He stated that many
states have indicated willingness to negotiate on properties and
have offered substantial benefits.
President Erickson advised Mr. Favro that he favors the proposed
project expanding to the west rather than north due to the
residential hc~ in that area. He stated this would eliminate the
truck traffic on the east side of the building adjacent to the
residential property. Mr. Erickson ~mented that at this time he
cannot ~,~antee that all the variances would be granted, but he
does not feel any of the requests are unreasc~able. He ~Lm~_nted
that the City would like the Creamette Company to remain in New
Hope.
Mr. Erickson r~marked that there is a definite possibility to use
Mr. A~_kerberg ~m~ented that the plant is a very clean operation
with no toxic waste. He stated it only emits scme water vapor into
the air and the truck traffic is relatively mild.
oa~,dssioner Enck cu,u, mnted that he would like the expansion and
feels the City is in the capacity to negotiate with Creamette's.
costly.
Mr. A~ stated tbmy need the City's guidance, suggestions, and
imput as to how to move this through the City process as quickly as
possible.
New Hope EDA
Page 3
February 26, 1990
Itea5
C~t,~t~sioner L'Herault inquired what the approxia~te cost will be
for the sewer line. Mark Hanson, City Engineer, responded that it
would be over $200,000.
Mr. D~nahue stated that in order to use TIF he needs to know the
value of the project. Mr. Favro stated he could provide that
information.
City Attorney, Steve Sondrall, c~m~ted that it would have to be
set up as an economic develo~mnent a~-~trict.
President Erickson informed Mr. Ac~ that the next step would
be to s~a~t prepar/ng final plans and meet with the Planning
C~Lmd~sion.
Mr. Donahue stated one of th~ proposals c~ the state legislature's
~ahle is the elimination of the economic development districts. He
suggested initiatir~ the procedure for a tax increment district to
at least b~ve the project in process. He rec~tm~nded adopt~ a
resolution at the next meeting.
Mr. Ackerberg urged Mr. Donahue to proceed with preparing a
resolution to be adopted at the next meeting.
President Erickson introdu~ for discussion Item 5, Consideration
of P~quest by Autohaus/~ncmas Boettcher to Assist in Financing the
A~,~itic~ of Property I~ca~ at 7675 42r~ Avenue North (New Hope,~
Animal Hospital - Planning Case #89-24).
President Erickson c~mLented that Mr. Boettcher was not in
atter~. He stated he has spoken with one school board member
and will try to contact others to ask for their cooperation in
assisting with this project. He remarked that if a settlement
cannot be reached on the school district property, Mr. Boettcher
will not be able to proceed with the project.
Motion was made by Cu~m~ssioner L'Herault, seconded by C~..,dssioner
Enck to adjourn t~ ~. All present voted in favor. The New
Hope FDA adjourned at 8:25 p.m.
Valerie Leone
city Clerk
New Hope EDA
Page 4
February 26, 1990
Ap~ 23, 1990
City ~] ], 7: 35 P.M.
MI~J~ OF
FEB 26, 1990
~ #90-1
Ite~5
#90-3
Page 1
President Erickson called the meeting of the Econc~ic Development
Authority to order at 7:35 p.m.
Present: Erickson, L'Herault, Otten, Williamson
Absent: Enck
Motion by C~dssio~er Williamson, seconded by C~sioner Otten to
approve the E~A minutes of February 26, 1990. Ail present voted in
favor.
Mayor Erickson stated Ite~ 4 wuuld be discussed later in the meeting
upon Mr. Harold Teasdale' s arrival.
Commi~io~ Otten introduced the following resolution and moved its
adoption: ~RESOI/3T/~ ]~SCIND~ ~ N~)I~%TTC~S ~
~ ~ AUI~MATx.~, ]NC.". The motion for the adoption of the
foregoing resolution was seconded by C~Lmdssic~er L'Herault, and
upon vote being taken thereon; the following voted in favor thereof:
Erickson, L'Herault, Otten, Williamson; and the following voted
agair~st the same: None; absent: Enck; whereupon the resolution was
declared duly passed and adoDted, and was signed ~ff the president
C~t..,dssicner Williamsc~ introduced the following resolution and
moved its adoption: ~ESOLUTI~ D~ S~%FF TO ABANDC~ ~
~ ~ ~ AS ~CT ~ FF~R ~D-2141
INVOLV/N~ ~E P~D'S P~B PRDP~TY". The motion for the adoption of
the foregoing resolution was seconded by Commissioner L'Herault, and
upon vote being taken thereon; the following voted in favor thereof:
Erickson, L'Herault, Otten, Williamson; and the following voted
against the same: Nc~e; absent: Enck; whe~n the resolution was
declared duly passed and adopted, and was signed by the president
C~mmi~i~ Williamson introduced the following resolution and
moved its adoption: "RESOLUrI~ PROVIDINS P~ Pj~z.~C HEAR/NG C~ ~E
PROPOS~) S~R OF 4021 ~ AV~E N~/~{, N~8 ~0PE, ~ (PID
#17-118-21 24 0102)". ~he 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,
L'Herault, Otten, Williamson; and the following voted against the
same: None; absent: Enck; whereupon the resolution was declared
April 23, 1990
New Hope EDA
Page 2
~]ypassedandadooted, and was signed bythepresidentwhichwas.~
attested to~thesecretary.
Motion made by Cu~,dssioner Williamson, seconded by C~mdssioD~r
L'Herault, to sus~m~ ~ ~eet/z~ {5 at 7:40 p.m. to cc~]~ct an ~
_eM3~ ~Fcive ses~ic~ ~ ]~edicii~e T~kl~ ~ S[~.~C P~eCt #396.
All present voted in favor.
Motion made by Cu~L~sioner Williamson, seconded by C~mk-.~ssioner
Otten, to enter an ~1% e~ecutive ~ion. All present voted in
favor.
Tb~ EDA P~gular Meeting reom~ened at 8:00 p.m.
President Erickson introdu~ for discussion Item 4, Housing
~ by m~old T~me.
Mr. Harold Teasdale, 4127 Beard Avenue South, was recognized and
stated he is with the Minnesota Attainable Housing Corporation.
Mr. Teasdale explained that the MAHC is a non-profit organization
and its proposal is to purch~ -~e and operate two apartment complexes
in New Hope: Wincrest AI~Xt~e~L~ and Parkridge Apartments (formerly
Oregc~ Estates). He explained each cc~plex is about 20 years-old
and has been serving lc~_r incce~ residents. He stat~d because of
the age of the ccmpl~ major cc~ will rec~i~e attention
(windows, heating systems, ar~ roofs). Each has the potential to f~
metro area demogrmphic trend of a decreasing number of rental
families continues. He stated projects which have intervention now
Mr. Teasdale stat~_ their request is for an inducement for tax
exempt bc~ds which the organization would use to finance the
tax rats to that of homesteaded properties.
President Erickson inquired how the project would benefit the City
of New Ho~eo
Mr. Teasdale explained that their intention is to maintain ~a]ity
President Erickson stated the city of New Hope has been very
progressive in provid/ng housing for all income levels.
The discussion oo~tinued re~xding the loss of propert7 taxes.
President Erickson o~m, anted that the legislature is cutting aids to
the city and Mr. Teasdale's proposal would take a ~,~ter of a
million dollars off the tax rolls.
April 23, 1990
Co~tdssic~er Williamsc~ encc~ Mr. Te~_-~le to pursue and stated
she would like more informati~ rega~ the proposal.
Mr. Teasdale was directed to discuss the project further with City
staff.
Motic~ w~s made by C~t~io~r Otter, seconded by C~at~d~sioner
L'Herault to a~o~tz~l the me~. Ail present voted in favor.
New Hope E~A adjourned at 8:30 p.m.
~ne
Valerie Leone
city Clerk
New Hope wn~
Page 3
April 23, 1990
~ 23, 1990
City t~m]], 7:40 P.M.
SESSI~
The Economic Develogm~_nt Authority met in executive session at 7:40
p.m.
Present: Erickson, L'Herault, Otten, Williamson (Absent: Enck)
Also in attemdance: City Attorney, Steve Sondrall, City Manager,
Den Donahue, and City Clerk, Valerie Leone
~ne E~A discussed issues regarding Medicine Lake Road Street Project
#396.
Moticm made by CuLa,dssioner Otten, seconded by CuL,,~d~sioner
L'Herault, to cloee the e~e~ ?cite ~io~. All present voted-in
favor. The EDA exeoative session adjourned at 8:00 p.m.
Valerie Leone
City Clerk
New Hope EDA
Page 1
April 23, 1990
4401XIllI~A~I~i~SH
l:ll~ll!~I~~ ~55428
l~ 14, 1990
Cit~ }t~11, 9:10 P.M.
APPROVE
M~/~ OF
APRTT. 23, 1990
H0P~ .TC HEARING
Hearing Item 4
New Hope ~ra
Page 1
The New Hope Economic Develo~ Authority was called to order at
9:10 p.m.
Present: Otten, L'Herault, Williamson
Absent: Erickson, Enck
Motion made by C~aissioner L'Herault, seconded by C~mM_~sioner
Williamson, to appoint Ommt~ssioner Otten as President Pro tam for
the EDA meeting of May 14, 1990.
Motion byC~,m~ssionerWilliamson, seconded byOam~dssionerOttento
approve t he--minutes of April 23, 1990. All present voted in
favor.
President Pro tern Otten introduced for discussion Item 4, Public
ca~ the proposed sale of 4021 Oregon Avenue North, New Hope,
Mi~ (PID #17-118-21 24 0102).
City Manager, Dan Donahue, stated the public hearing is to consider
tb~ sale of the home at 4021 Oregon Avenue North to Steven and Diane
Heinsch in the amount of $69,000.
He indicated Mr. and Mrs. Heinsch have leased the property for
approximately three years. He stated they have qualified for a
first mortgmge and the City will be giving a second mortgage. He
stated the second mortgage is for $13,000 and under the terms of the
second mortgage they must homestead and occupy the residence for a
period of 15 years in order for the second mortgage to be forgiven.
If at any time during the 15 years they sell, move, rent, etc. they
will owe the City a percentage of the remaining mortgage.
Motion madebyC~mM~sionerL'Herault, seconded by~identProtem
Ottentoclosethepublichearingmthe~sale of 4021
Ore~A¥~=North, Ne~H~, ~ (PID#17-118-21 24 0102).
All present voted in favor.
Commissioner Williamson introduced the following resolutionand
moved its adoption: "12ESOI/0TTC~T~~IiE SATR OF REAL~
A~4021CI2~G~AV~I~JE~, PID#lT-118-21 24 0102, TO ST~gI~I~AND
DIANE I~ZlI~SCIiIN~I~EAD~/~q~OF $69,000; ~II~3~IiEPRES/I~IqT
May 14, 1990
i~-"VI"~T .T ~.ATIC~T
Item5
RESOLDTIC~
~ ~90-5
Ite~5
DO~/~S". ~he motion for the adoption of the foregoing
resolution was seconded by Cc~missioner L'Herault, and upon vote
being taken thereon; the following voted in favor t_hereof:
L'Herault, Otten, Williamson; and the follow~ voted against the
· declared duly passed and adooted, and'was signed by the president
which was attested to by the executive director.
President Pro tern Otten in--ced for discussion Item 5, Resolution
Appointing Directors to the First Board of the New Hope CumHtt~Inity
Revitalization Corporation.
Mr. Donahue stated the creation of this Corporation is necessary to
accept and channel CDBG monies from the County to the developers of
the physically ha~capped facility (Improvement Project #462).
He stated this is required under the HUD guidelines.
Mr. Donahue stated the proposed boa~.~.~t-~mbe, rs of the Corporation are
the current four Citizen Advisory C.u~,,~uiesicune.~ a~ tRne City
Attorney.
C~m~issioner L'Herault introduced the following resolution and moved
OF ~E ~ ~ ~ ~T.T'F~ ~~. ~ motion
for the adoption of the foregoing resolution was seconded by
C~dssioner Williamson, and upon vote being taken thereon; the
following vot~d_ in favor thereof: L'Herault, Otten, Williamson; ana
the following voted against the same: None; absent: Erickscn, Enck;
whereupon the resolution was declared duly passed and adopted, and
was signed by the president which was attested to by the executive
director.
Motion ~s made by O.~,,,~ui.~i<~ner Williamson, seconded by C~mdssioner
L'Herault to adjourn the meets. Ail present voted in favor. The
New Hope EDA adjourned at 9:15 p.m.
Valerie Leone
City Clerk
New Hope FhA
Page 2
May 14,
199,
4401 ~ AV~FOE
~ CO[~, ~ 55428
May 29, 1990
city F~ll, 8:00 P.M.
MINOT~R OF
MAY 14, /990
PROP0~%L
~ SITE
Item4
President Erickson called the meeting of the Economic Development
Authority to order at 8:00 p.m.
Present: Erickson, L'Herault, Enck, Williamson
Absent: Otten
Motion by C~,,dssioner Williamson, seconded by C~m~,~ssioner
L'Herault to approve the Rr~% minutes of May 14, 1990. All present
voted in favor.
Mayor Erickson introduced for discussion Item 4, Discussion
Concerning Proposal Regarding M~ Site (Dick Curry).
Mr. Donahue informed the EDA that Mr. Dick Curry ha~ a proposal
which he would like to explore concerning development of part of the
M/nnegasco site. Mr. Donahue stated the proposal involves a
manufacturing company from Crystal which desires to relocate for
expansion purposes.
Mr. Donahue further explained that the request involves tax
increment financing for industrial development on the M/nnegasco
property. If the City were to undertake a tax increment district it
would be called an economic development district as opposed to
redevelopment district. He c~,,~ented that there have been changes
to state law regarding tax increment financing. He stated he has
spoken to the City's bond counsel as well as individuals from the
State regarding tax increment financing.
Mr. Donahue advised the Rr~ that he will c~u~nt after the
presentation regarding the bond counsel's reo~u~ation.
Mr. Dick Curry was recognized and introduced Don Hamlin, founder of
Air Quality Engi~_ring, and Heidi Oas, President of Air Quality
Crystal in rented space. He explained that the company wishes to
expand and is proposing a 50,000 s~a~e foot building for
manufacturing purposes. ~ne company currently employs 58 people and
over the next five years may employe double this number. Mr. Curry
stated it is a clean operation with no hazardous or toxic waste or
emissions. Mr. Curry showed a sketch of the proposed building and
May 29, 1990
New Hope RnA
Page 2
indicated that it would meet the City's code with landscaping,
setback requirements, etc.
Mr. Don Hamlin, owner of Air Quality Engineering, was recognized and
gave a brief sunm~ry of the company. He stated the business was
established in 1973 to design, manufacture, and market self-
contained air cleaning devices for the removal of cigarette smoke,
welding fumes, coolant mists and other cc~uercial/~trial
Mr. Hamlin stated AQE was selected in 1974 to manufacture similar
equipment for Honeywell, Inc. He stated the company work~_ through
a cooperative design program with Honeywell and was a vendor for
Honeywell for 10 years. Mr. Hamlin explained that due to the
increase in volume Honeywell brought the cu~m~rcial units in-house.
He credited this endeavor for their gaining involvement in the
industrial air-cleaning business. He c~m~nted that a window of
opportunity bn~ been opened to their bus~ due to the current
interest in air quality, fueled by OSHA and EPA air quality
regulations.
President Erickson inquired of Mr. Hamlin's plans to relocate: Mr.
Hamlin responded that he would like to relocate as soon as possible.
He stated they have a lease ending September 30 which they are able
to extend. He remarkS_ that if allowed the opportunity to become a
member of New Hope's business C~t,,L~Lnity they would like to be
relocated no later than next fall. ~
President Erickson informed Mr. Hamlin that his business appears to
be one that the EDA would favor. He stated there is a new TIF bill
in place and no City at this tLme knows the actual cost to the City
as far as penalties from loss of state aids. Mr. Erickson stated he
would have no objections to using TIF if it is available and this
proves to be a viable project. He stated it is difficult to commit
to the use of Tax Increment Financing until the changes are fully
Mr. Hamlin responded that he is aware that the situation is
uncertain at this time, but he wants the EDA to know that his
company ~ould like to be a part of the c~,,~,unity if TIF is made
available to them.
Mr. Hamlin proudly introduced his daughter, Heidi Oas, and stated
she is the President of Air Quality Engineering.
C~.,~ssioner Enck asked whether the exterior surface of the units
are painted after assembly. Ms. Oas stated the units are spray
painted but not in their facility.
Mr. Donahue stated the City's bond counsel, Jerry Gilligan, does
not have enough information at this time to base an opinion. He
cu~,,L~ced that one option tentatively proposed would be that the
May 29, 199~
developer or owner would pay back to the City an impact fee or a fee
equivalent to what is lost in revenue. Mr. Donahue indicated there
is some skepticism relating to the legality of such fees. He
questioned the RDA whether it desires to be the first to endeavor.
President Erickson cu~..ented that he is unwilling to proceed unless
b~ is absolutely sure that it is legal and safe for the City. He
remark~d_ that bond counsels will have to examine this bill and
determine what the alternatives are and hc~ cities can adhere to the
law but still assist with developments.
C~,.,,~ssioner Enck c~,,,~nted that there may also be expensive legal
costs involved.
President Erickson stated he believes there may be sc~ething defined
within 30-60 days.
Mr. Donahue stated there is a policy in place reg~ TIF and the
proposal would have to submit a statement of r~. If the City were
to proceed, the developer would have to demonstrate that there is in
fact a n~, and that the financial ncc~s can only be met through.
the City's assistance.
Mr. Curry inquired whether the EDA is willing to consider the
project.
President Erickson reported that it appears to be the type of
business which the k~%A would endorse since it is a clean operation
and would create jobs.
Motion was made by Cc~missioner L'Herault, seconded by C~m~Hssioner
Enck to adjourn the meetS. All present voted in favor. ~ne New
Hope ~ adjourned at 8:35 p.m.
Valerie Leone
City Clerk
May 29, 1990
4401X~r.f~VI~K~El~K~
J~e 25, 1990
City ~ll, 8:25 P.M.
APPROVE
MI~JTES OF
MAY 29, 1990
President Erickson called the meeting of the Economic Development
Authority to order at 8:25 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamson
Motion byCOmmissionerWilliamson, seconded byC~,~issioner
Ottento approve the E~Am/nutes of May 29, 1990. All present voted
in favor.
Mayor Erickson i~ for discussion Item4, Discussion
City Manager, Dan Donahue, stated Autohaus has been discussing with
the ~ the proposal to assist them with the develo~m~_nt of their
property. ~us would like to acquire the former Animal Hospital
property and a piece of property frc~ School District 281 with the
City assisting in the financing by offering a low interest loan for
approximately $200,000.
Mr. Donahue indicated the cost of the school district property is
$45,000 and the cost of the Dr. Herman's property is $140,000. He
stated Mr. ~hcmas Boettcher, President of ~us, is willing to
pay $25,000 which brings the proposal to $160,000. However, there
may be a cost of $35,000 for water drainage correction. Also, the
cost for demolition of the animal hospital building would be $8,600.
Mr. Donahue~~p~ could beatax increment project
allowing $160-200,000 of financingwith a promise to payback. He
stated there is $100-150,000 ofT IF monies available. He c~m~ented
that if the f'~%~hedprojectcould provide theCity $10,000 for 15
years therewouldbeat least $150,000 of increment.
He indicated the City Attorney has recommended security of a second
mortgage; however, Mr. Boettcher does not believe that would be
possible.
construction costs for drainage r~~ of the property as
follows:
New Hope EDA
Page 1
June 25, 1990
New Hope EDA
Page 2
Grading/Retaining Wall ~mprovements
mil ~ri~
$18,000
10,000
4,500
2,500
$35,000
'Mr. Hanson explainedthat in the late 1970's a 36" storms ewer was
built from tb~ intersection of 42ndandWinnetkaandflowed into the
Old Dutch Pond in anefforttoeliminate flooding in MemoryPond.
He explained that if Autohaus is allowed to provide inlet capacity
into the existing storm sewer system, which has a limited amount of
capacity, drainage will be composed. He stated a grading plan
would be developed inco~rating a public storm sewer system
assume the necessary construction to grade the site to subgrade
elevation while storm sewer costs assume a lateral storm sewer
constructed between Autohaus and the school district property to the
Mr. Hanson stated the storm sewer system will be able to capture
contaminants fzcm; oil spills, etc., frum Autohaus and the bus garage
before they get into the wetlands.
Mr. Tc~Boettcher, President of b/fcxahausofMinneapolis, Inc.,
stated he can put $25,000 into the project and is requesting
financing for $160,000. He statedhecouldrepaythe loan at 8 or
8-1/4% over6 years rather thanl5years.
C~,,~ssioner Williams~ inquired whether the city typically assesses
for storm sewer projects. Steve Sondrall, City Attorney, stated the
City does not normally assess properties for storm sewers as it is
difficult to prove benefit for storm sewers. Ms. Williamson stated
Kitchen would benefit by the improvement.
to acce~t a $10,000 assessment to be paid over 15 years. Mr.
Boettcher ir~ca~d that it would only amount to $95 per month and
would not present a problem.
Mr. Boettcbmr stated Dr. Herman is anxious to sell his property.
He stated the school board will meet on July 16 and could act on the
proposal at that time.
Mr. Sondrall stated he is concerned with h~ the arrangement will be
~tl%~red. He stated the $150-200,000 loan would be unsecured.
~ E~A discussed the worst case scenario: th~ possibility of the
failure of ~tohaus. Mr. Boettcher disagreed that the city would be
giving a totally unseo/red loan. He c~m~ted that $30-40,000 may
June 25, 1994
New Hope EDA
Page 3
the adjacent properties.
C~m~ssioner Enck co~mmte~ that tb~ parcels would not have to be
sold to~ether and the properties do not have much value if sold
separately, especially without buildings o~ each.
President Erickson agreed that the taxpayers should not be exposed
to a possible loss of $160,000; however, the money from the TIF fund
for 42nd Avenue would eliminate the total loss of money.
Mr. Sondrall indicated that the proposal should be viewed as a TIF
project where the developer bm.~ agreed to pay hack the dollars
invested. Although if the business goes urder, sufficient increment
would have to continue to be generated by that prcp~ to pay TIF
as well as a taxpayer to pay it.
Mr. Donahue stated the project would generate $10,000 to $14,000 of
increment per year.
c,~mt-d.ssioner Otten remarked that the proposal appears to meet the
TIF criteria.
Mr. Boettcher stated A/xtchaue bm~ grown fl-c~, eight employees to 23
employees and anticipates adding six to eight more employees.
President Erickson c~,u,ea~ced that he views this as part of the 42nd
Avenue Redevelqmnent Project of which thousands of dollars have
already been spent. He stated Mr. Boettcher's plan will upgrade
another property ~n 42rd Avenue.
Mr. Sordrall stated a third mortgage would be some sort of security
since it ties into title of the property. H~ feels the assembled
value of the properties would be sufficient to generate the
increment.
Mr. Boettcher next stated he is willing to pay the loan in five
years rather than six years. Mr. Erickson stated every year the
City's exposure would decrease so if ~--Wcohaue would experience
financial difficulties in three years, the City's exposure would
~he City Attorney inquired of the date that the second mortgage
would be paid off. Mr. Boettc~er stated it will be an indefinite
term as it is collateral rather than something to he paid off. He
stated the second mortgage would allow a credit line with the bank
for $100,000 to $150,000.
Mr. Donahue asked the EDA for direction on whether to pr~m~d or
not with the proposal. H~ stated Dr. Herman is anxious to sell his
property, and the school district will not sell its property until
it receives notification that the City will not assess its property
for the stor~ sewer improvements.
June 25, 1990
Cu~issio~_r Enck stated he is not opposed to the proposal or to
improving 42nd Avenue and he does believe Mr. Boettcher has a good
exposure to the TIF, the insecurity of the loan, and the irrefutable
harm that it may do to the city.
President Erickson stated the ~ is only for a few years so
the risk is not that great. He stated the odds are very high that
Autohaus will not experience any finar~ial difficulties.
O~,,L,~ssioner Enck stated the City's financial consultant previously
did not ~c~,,~{~.r~ t~king a th l rd mortgage.
Motion md~ by C~m~ssioner Otten, seconded by President Erickson to
with Autxmhaus, to ~ School D~ 281 that there will be no
City's w~]]{r~3m~ to ~ot/ate. All present voted in favor.
C~m~ssioner Williamso~ requested a report frc~ Becky Yamisch of
Public Financial Systems and from the City Attorney regarding the
ramifications of obtaining a third mortgage.
Mr. Donahue stated the City's financial advisor will be consulted
prior to any final decisions. He stated the financial consultant
will report on the proposal as well as review Autohaus' financial
state~_nts and position.
C~a,,~ic~ner ~ z~-t~d clarification on whether the foregoing
motion authorized the project. Mr. Donahue stated the k~A has only
authorized staff to proceed with negotiations.' He stated the EDA
will have to make a fids] decision at a later date.
Motion was made by C~,m~ssioner Otten, seconded by C~,~,~ssioner
L'Herault to adjourn the meritS. All present voted in favor.
New Hope ~ adjourned at 9:55 p.m.
The
City Clerk
New Hope EDA
Page 4
J~ne25,
1990
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
Approved EDA Minutes
Meeting #9
August 27, 1990
CALL TO ORDER
ROLL CALL
APPROVE HINUTES
OF JUNE 25, 19g0
LICENSE AGREEMENT
PARKING LOT
IMP. PROJECT 453
Item 4
President Erickson called the meeting of the Economic
Development Authority to order at 7:30 p.m.
Present: Erickson,.L'Herault, Otten, Enck, Williamson
Motion by Commissioner Otten, seconded by Commissioner
L'Herault to approve the EDA minutes of June 25, 1990.
All present voted in favor.
President Erickson introduced for discussion Item 4,
Motion to Approve License Agreement Between New Hope/U.S.
Swim Partnership and the EDA for New Hope Shopping Center
Parking Lot; Authorizing the Mayor and City Manager to
Sign.
Mr. Donahue stated this item relates to the license
agreement and addendum to the license agreement for
construction and maintenance of the City Center parking
lot located west of Applebee's. The agreement has been
executed by the owners of the shopping center and
Applebee's.
He explained that the Council previously passed a
resolution awarding the bid for the construction of the
parking lot subject to reaching agreeable terms for
parking lot maintenance. In the agreement, the tenant
agrees to reimburse the EDA for the entire cost of the
project and is responiible for all maintenance of the
parking surface, including sweeping, striping, snow
removal, resurfacing, and/or reconstruction. The
partnership maintains liability insurance for personal and
property damage. A motion is now needed to approve the
license agreement.
Commissioner Enck expressed concern regarding landscaping
and that it may be inappropriate for such property. Mr.
Donahue stated he will ask Dick Desplinter to review and
that he will report back to the EDA before proceeding with
any landscaping.
Commissioner Williamson inquired whether the City will
New Hope EDA
Page I
August 27, 1990
MOTION
Item 4
PARO'S PUB
Item 5
MOTION
Item 5
ADJOURNMENT
have any administrative or maintenance costs for upkeep of
the property. Mr. Donahue stated he does not foresee any
expenses to the City. City Attorney, Steve Sondrall,
stated the license agreement will run for ten years and
may be renewed for eight additional ten-year periods.
Motion made by Commissioner Enck, seconded by Commissioner
Williamson to approve the license agreement between New
Hope/U.S. Swim Partnership and the EDA for New Hope
Shopping Center Parking Lot; Authorizing the Mayor and
City Manager to Sign. All present voted in favor.
President Erickson introduced for discussion Item 5,
Motion Approving Payment - Paro's Condemnation - Dismissal
of Total Take Eminent Domain Proceeding - $1,958.13.
Mr. Donahue stated the City has received a billing
statement for attorney's fees in connection with the
City's dismissal of the Paro's Pub condemhation action.
State law pyovides that a property owner is entitled to
payment of reasonable costs including attorney's fees if
a condemning authority dismisses or abandons an eminent
domain proceeding. The City did that in connection with
this property. The City Attorney has reviewed the
statement and has determined the fee to be reasonable and
recommends apprdval of the payment.
Motion made by Commissioner Enck, seconded by Commissioner
Williamson to approve payment - Paro's Pub Condemnation -
Dismissal of Total Take Eminent Domain Proceeding -
$1,958.13. All present voted in favor.
Motion made by Commissioner Enck, seconded by Commissioner
Williamson to adjourn the EDA meeting as there was no
further business to come before the Council. All present
voted in favor. The New Hope EDA adjourned a,t 7:40 p.m.
Si ncerely,
Valerie Leone
City Clerk
New Hope EDA
Page 2
August 27, 1990
Approved EDA Minutes
Meeting #10
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
September 10, 1990
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
OF AUGUST 27, 1990
RESOLUTION
EDA #90-6
Item 4
TWIN WEST EXPO
MOTION
ADJOURNMENT
President Pro Tem Enck called the meeting of the Economic
Development Authority to order at 9:46 p.m.
Present: Enck, L'Herault, Otten, Williamson
Absent: Erickson
Motion by Commissioner L'Herault, seconded by Commissioner
Williamson to approve the EDA minutes of August 27, 1990.
All present voted in favor.
Commissioner L'Herault introduced the following resolution
and moved its adoption: "RESOLUTION APPROVING DEVELOPMENT
AGREEMENT FOR WINNETKA WEST BARRIER-FREE HOUSING COMPLEX
AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO
SIGN". 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: Enck, L'Herault, Otten, Williamson; and the
following voted against the same: None; Absent: Erickson;
whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by
the executive director.
Mr. Dan Donahue, Executive Director, informed the EDA that
the City plans on participating in the Twin West Expo on
September 26. He explained that all cities are invited to
staff a booth and promote their city. He requested
authorization for the expenditure of funds to purchase
expo literature.
Motion was made by Commissioner L'Herault, seconded by
Commissioner Williamson approving an expenditure up to
$2,500 for the Twin West Expo. All present voted in
favor.
Motion made by Commissioner Otten, seconded by
Commissioner L'Herault to adjourn the EDA meeting as there
was no further business to come before the Council. All
present voted in favor. The New Hope EDA adjourned at
9:50 p.m.
Sincerely, ~
City Clerk
New Hope EDA
Page 1
September 10, 1990
Approved EDA Minutes
Meeting #11
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
December 10, 1990
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
SEPTEMBER 10, 1990
AUTOHAUS PROPOSAL
Item 4
MOTION
President Erickson called the meeting of the Economic
Development Authority to order at 8:35 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamson
Motion by Commissioner Otten, seconded by Commissioner
Williamson to approve the EDA minutes of September 10,
1990. All present voted in favor.
President Erickson introduced for discussion Item 4,
Discussion Concerning Proposal by Autohaus; Acceptance of
Report by Springsted.
Motion was made by Commissioner Williamson, seconded by
Commissioner Enck accepting the report by Springsted Inc.
regarding the Autohaus financing request. All present
voted in favor.
Mr. Donahue stated the EDA last discussed the Autohaus
proposal at its meeting of June 25, 1990. At that time
the security for the financing was of issue and the City's
financial consultant has since evaluated the proposal.
Mr. Donahue pointed out that the report prepared by
Springsted indicated that the City could expect to recover
the $190,000 loan and also indicated that Autohaus should
be able to support its financial commitments.
Mr. Donahue stated that in the event of difficulties with
business cash flow, the City's position is secured by the
personal guarantees of Mr. Boettcher, the Autohaus
corporate guarantee and the third mortgage lien on the
property. The tax increment generated by the project
would cover slightly more than half of the City's
exposure.
He stated staff is in the process of drafting an agreement
between Mr. Boettcher and the City setting forth the terms
and conditions of the loan. The agreement will be
presented to the EDA at its meeting of December 27, 1990.
Commissioner Enck questioned the projections for a 46%
New Hope EDA
Page 1
December 10, 1990
ADJOURNHENT
increase in business in 1991 over 1990 when the auto
industry appears to be declining.
Commissioner Enck questioned Autohaus' parking of cars on
the former Animal Hospital site as it relates to the
City's zoning code. Mr. Donahue stated Mr. Boettcher does
have a formal lease arrangement with Dr. Herman.
Mr. Donahue indicated he wanted the public record to
reflect that he has transacted personal business with Mr.
Boettcher which in no way relates to City business.
The EDA requested year-to-date income and balance
statements from Mr. Boettcher.
Motion made by Commissioner Otten, seconded by
Commissioner L'Herault to adjourn the EDAmeeting as there
was no further business to come before the Council. All
present voted in favor. The New Hope EDA adjourned at
9:55 p.m.
Sincerely,
Valerie Leone
City Clerk
New Hope EDA
Page 2
December 10, 1990
Approved EDA Minutes
Meeting #12
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
December 27, 1990
CALL TO ORDER
ROLL CALL
APPROVE HINUTES
DECEHBER 10, 1990
AUTOHAUS AGREENENT
Item 4
President Erickson called the meeting of the Economic
Development Authority to order at 8:05 p.m.
Present: Erickson, Otten, Enck, Williamson
Absent: L'Herault
Motion by Commissioner Enck, seconded by Commissioner
Otten to approve the EDA minutes of December 10, 1990.
All present voted in favor.
President Erickson introduced for discussion Item 4,
Consideration of the Agreement Between the EDA and
Autohaus to Enter into a Financial Transaction of a Low
Interest Loan to Autohaus by the EDA.
Mr. Dan Donahue stated the 42nd Avenue Redevelopment Plan
includes an objective to redevelop substandard and
blighted properties. The EDA is considering a proposal by
Autohaus to acquire an adjacent property that has been
classified as substandard and uses that property in a
manner that would fit the current zoning ordinance.
The EDA is being asked to'assist by making a low interest
loan to Autohaus. The loan would be backed by tax
increment money, personal guarantees, third mortgage, and
a life insurance policy.
Kirk McDonald, Management Assistant/Community Development
Coordinator, reviewed the planning case. He stated the
preliminary plat was approved on December 11, 1989. He
stated it was approved subject to five conditions which
involved curbing, drainage and utility easements, and
preparation of a grading plan. On January 8, 1990, a
conditional use permit to allow outdoor storage and sales
and a variance to the front yard display area for striping
were approved subject to ten conditions. The ten
conditions basically dealt with set-backs, reduction in
the display area, additional landscaping, and review of
the plan by Shingle Creek Watershed District. He
commented that most of the conditions have been met. The
final plat was just recently received. Along with the
New Hope EDA
Page 1
December 27, 1990
final plat, the Planning Commission and Council have
indicated that a purchase agreement should be submitted to
show control of the site.
He also remarked that the original site plan which was
previously approved may require revisions if Universal
Color Lab remains in the building.
He next discussed drainage improvements on the property.
The City Engineer has reviewed and approved a drainage
plan subject to approval by the DNR, approval by the
Shingle Creek Watershed, and that provisions are provided
for drainage and utility easements on the final plat. Mr.
McDonald indicated the plan has been approved subject to
drainage and utility easements.
Steve Sondrall, City Attorney, asked whether the final
plat includes the Animal Hospital property. It was
determined that the plat does include it.
Mr. Sondrall stated the documents are preliminary at this
time. One condition on the mortgage that needs to be
included is the agreement that Mr. Boettcher provides a
life insurance policy relative to the face value of the
loan.
Mr. Sondrall stated the major hurdle at this time is to
schedule a simultaneous closing in connection with the
loan transaction and with the acquisition of the
properties that have been incorporated into the final
preliminary plat. He explained that Autohaus would be
acquiring the property from the school district, the EDA
would be acquiring the property from Dr. Herman and in
turn conveying the property to Autohaus. At this time the
closing of the loan transaction would take place.
He stated items required prior to the closing include
receipt of: a final plat, purchase agreements indicating
control of the property, life insurance policy as part of
the loan security, $26,260 letter of credit or bond for
public improvements (drainage) relating to the final plat,
and a copy of the signed loan commitment with Norwest
Bank.
Mr. Sondrall stated an easement is necessary from the
school district to facilitate the drainage plan. He
stated he does not foresee any problems in obtaining the
easement as the drainage plan will be beneficial to the
school district property as well as Autohaus.
New Hope EDA
Page 2
December 27, 1990
Mr. Donahue recommended that Tom Boettcher obtain legal
counsel to work with the City Attorney. Mr. Boettcher
responded that he has already obtained an attorney.
Mr. Boettcher, Autohaus, distributed to the Council a
letter detailing concerns relating to business
projections.
Mr. Boettcher commented that the average amount of sales
per month is $38-40,000 and less than 2% of their business
comes from business of the street. He stated by
increasing the retail sales by nine vehicles per month
they can achieve the projection of $50,000 in monthly
gross profit.
He stated in 1990 the Body Shop has averaged $75,050 in
sales per month and 45.3% gross profit. This reflects a
25% increase over the 1989 volume. He stated factoring in
an additional 25% increase into 1991, body work on the
additional sales vehicles and the growth of the customer
base from the increased exposure and advertising should
justify the projection of $125,000 of net sales.
Mr. Boettcher commented that the service department is at
$40,000 per month in net sales due to the purchase of a
small company "Mobility Unlimited" which builds and
services handicapped vans.
President Erickson reiterated the details yet to be
resolved: the simultaneous closing in connection with the
school property and the Herman property, Mr. Boettcher
needs to provide the City with a life insurance policy in
a face amount equalling the principal balance of the loan,
the Autohaus final plat needs to be submitted and approved
including a letter of credit guaranteeing the drainage
improvements, a copy of the loan commitment from Norwest
Bank needs to be submitted, the easement from the school
district must be obtained, and lastly, submission of a
revised site plan with changes relating to Universal Color
Lab is necessary.
The EDA next addressed the sign plan issue. Mr. Donahue
commented that there are currently two pylon signs and
when the property is combined to one plat only one sign is
allowed under city ordinance. Mr. Boettcher stated he has
obtained an architect to do a rendering of the building
and deal with the sign plans. President Erickson advised
Mr. Boettcher to have the architect contact the building
department. Mr. Boettcher advised that he will apply for
a variance during the interim.
New Hope EDA
Page 3
December 27, 1990
MOTION
ADJOURNMENT
Mr. Donahue stated the agreement is for $187,500 at nine
percent interest for a six year term. He stated one issue
yet to resolve is which party will assume the expenses for
demolition of the animal hospital building. At this time,
estimated costs of $8,600 for demolition have been
included in the loan amount.
The EDA concurred that if the final demolition costs total
less than $8,600, the loan amount will be reduced by the
difference.
The EDA discussed the cash flow projections prepared by
staff on the financial of TIF District No. 8. The
projections showed the ending cash balances in year 2004
based on several scenarios. If the loan is granted to
Autohaus and not repaid, the ending cash balance would be
about $500,000 less than if the loan were not made. If
the loan was made and fully repaid, the ending cash
balance would be $9,000 greater than if the loan had not
been made.
Commissioner Enck stated that he could not support the
loan request based upon a possible adverse impact of a
$500,000 loss compared to a potential gain of $9,000.
Motion was made by Commissioner Otten, seconded by
Commissioner Williamson approving tentative agreement with
Autohaus and directing the City Manager and staff to
obtain documents in final form. Voting in favor:
Williamson, Otten, Erickson; Voting Against: Enck; Absent:
L'Herault. Motion carried.
Motion made by Commissioner Williamson, seconded by
Commissioner Otten to adjourn the EDA meeting as there was
no further business to come before the Council. All
present voted in favor. The New Hope EDA adjourned at
9:25 p.m.
Valerie Leone
City Clerk
New Hope EDA
Page 4
December 27, 1990