1989 EDA CITY OF
4401 ~ AV~3E
~ fiSHY'f, MINNESUEA 55428
March 27, 1989
City }{~l], 10:15 P.M.
N~ ~PE
Item3
#89-1
OC~ERDL OF
HRA PROJECTS
Item4
Chairman Erickson called the meeting of the Economic Development
Authority to order at 10:15 p.m.
Present: Erickson, Daly, Otten, Enck, Williamson
Chairman Erickson introduced Item 3, "Organizational Resolution of
the Board of Co~Ldssioners of the Economic Development Authority in
and for the City of New Hope, Minnesota and Appointing Officers".
C~,L,~ssioner Williamson omm~nted that it appears as though three
people will be holding five offices.
The City Manager stated the Economic Development Authority (EDA) was
set up in the same manner as the Housing & Redevelopment Authority
City Attorney, Steve Sondrall, stated that state law specifies a
commissioner can hold one or more offices with the exception of
President and Vice President offices. He stated that if the EDA
chooses, one person may hold more than one office. He stated the
only other restrictions are that board members must hold the
offices of President, Vice President, and Treasurer; however,
Secretary and Assistant Treasurer may be held by a non-board member.
C~,,~,~ssioner Enck introduced the foregoing resolution and moved its
adoption: "C~C~a/N-/ZATIONAL RESOI//ITON OF ~4E BOARD OF ~IC~ERS
OF ~ ~C E~VELOPM~qT ~ IN AND FOR ~ ~ OF NEW
}K)PE, M/lqNESOEA AND APPO/]qTING OFFICERS". The motion for the
adoption of the foregoing resolution was seconded by Coim~Hssioner
Otten, and upon vote being taken thereon; the following voted in
favor thereof: Erickson, Daly, Otten, Enck, Williamson; and the
following voted against the same: None; absent: None; whereupon
the resolution was declared duly passed and adopted, and was signed
by the president which was attested to by the secretary.
Chairman Erickson introduced for discussion Item 4, "Resolution
Accepting Control, Authority and Operation of Housing and
Redevelopment Project Nos. 80-1, 81-1, 82-1, 85-1, 85-2, and 86-1
and Tax Increment District Nos. 1600 through 1606".
It was determined that this resoluti°n will be considered on April
10, 1989, so the New Hope City Council may adopt the resolution
transferring control of the project numbers to the EDA.
New Hope EDA
Page 1
March27, 1989
New Hope EDA
Page 2
C~airman Erickson introduced item 5, "a Development Proposal by Mr.~
Dick Curry". Mr. Curry's presentation includes a proposal to
develop the Minn~ property at 39th and Winnetka and the church
property at 36th and Winnetka.
Mr. Dick Curry w~s recognized. He stated present at tonight's
meeting are members of Holy Nativity Lutheran C~urch, the C~urch
Board, and Pastor Wall. He stated the proposed plans are to
pllrchase the church property and the Minnegasco property then
develop the church property into a shopping center and in turn,
develop the church using the westerly four acres of the gas company
property. He stated an industrial development is planned for the
balance of the gas company property. He stated the overall plan
would be to plat the property in two pieces initially (one for the
church property and the balance into I-1 zoning as one large lot).
He stated he anticipates buildings, user occupied and owned,
approximately 10-20,000 sc~sre feet in size (print shop, electrical
shop, etc.)
Chairman Erickson explained that no formal action will be taken at
, tonight's meeting as this is an informatiopal public hearing only.
Mr. Dean Broden, C~airman of Holy Nativity Lutheran Church Building
Co~m~dttee, was recognized and stated there are three points he
wishes to make. First, Holy Nativity is currently negotiating with
Mr. Curry; they have reached an agreement for the purchase of the
front four acres of the Minnegasco site and the sale of all of the
Holy Nativity holdings, over five acres of the church prope~
located at the corner of 36th and Winnetka. He coimt~nted that there
are no signed documents yet. Second, the church has no objection to
rezoning of the Minnegasco property to accolmt-~date the development.
Third, the church will present the proposed design and construction
plans of a new church facility to the City Council as soon as
possible.
Commissioner Williamson inquired whether the church is dealing with
Mr. Curry to purchase the Minnegasco property or with Minnegasco
directly. Mr. Broden stated they are not dealing with Minnegasco
directly, but are dealing with Mr. Curry, the soon-to-be owner of
the property.
Mr. Rick Keelor, architect of the proposed church, was recognized
and stated he has gone through six different schemes in terms of how
the site could be ttsed. He presented preliminary plans to the
Conmtission. He stated one of the changes the Church would like to
make is the appearance of the church changing it from an office
building appearance to a 'traditional' church appearance. Plans are
for a 15,000 sc~are foot church with peaked roofs, etc. He stated
an entrance would be from the north and he would like an exit off
Winnetka. He explained that parking would be at a 3 to 1 ratio for
the 300 seat sanctuary.
~.27, 1989
New Hope ~.~
Page 3
Coxt~missioner Enck inquired whether the parcel on 36th is sufficient
for building. Mr. Keelor responded all the requirements are met.
He stated they have allowed generous set-hacks and there is plenty
of land for placement of both the proposed building and parking.
Mr. Broden explained the soil condition of the Minne~asco site. He
stated a preliminary report shows that it is good clean soil;
however, it may not be compacted enough and may require some fill.
As far as the property on 36th and Winnetka, in conjunction with
the plan to add a new sanctuary to the northside of their present
building, a of soil bearings test was conducted by Brown
Engineering, and a copy of that report was provided to Mr. Curry.
He stated the soil problem w~s discovered when the church had plans
to add on to the current church. The soil could not be built on in
terms of a building. The engineers and architects determined that
correction would require removal and replacement of the existing
soil. Mr. Broden stated the church had been prepared to do so for
placement of an addition.
Mr. Broden stated that members of Holy Nativity Lutheran Church and
local residents are present who may wish to share their thoughts
with the Co~,,,t,~ssion. He stated some informal discussions with
people in the community have been held regarding the proposed
development and it appears the public is in favor of the
development.
Commissioner Enck inquired how critical the second access is to the
south of the property, as far as the church is concerned. Mr.
Broden stated the curbcut currently exists and they would like to
retain it. He stated it would be advantageous to the church to have
two different accesses, one entrance and one exit.
Mr. Dick Curry presented prelimi~ plans for the shopping center.
He stated he does not feel one curbcut on 36th would be adequate
due to the anticipated number of the left-hand turns.
Mr. Curry stated construction of the church is planned for July and
he would like to start construction of the industrial development at
the same time. He indicated H61y Nativity would like to retain
their current sanctuary until the new one is ~leted which would
put the shopping center at a late fall or early spring starting
He stated he would like the City to grant a form of Tax Increment
Financing umbrella for the industrial users so that they would have
to come in and apply to the City if they decide they need such aid.
He co~m~nted he feels extremely confident that the shopping center
will successful.
Commissioner Enck COALaL~_nted that there has been a significant
curtailment in the availability and application of tax increment
March27, 1989
New Hope EDA
Page 4
financing and he inquired whether Mr. Curry is speaking of a
$700,000 involvement by the city.
Mr. Curry stated the shopping center may generate $140,000 of new
taxes per year. He stated Holmes and Graven will write the overall
tax increment plan to be submitted to the City. He stated
preliminary discussion has indicated that this plan is very
applicable for tax increment financing as it is redevelopment.
C~mtHssioner Enck questioned what type of tenants my be in the
complex. Mr. Curry responded that a drug store, a hardware store, a
restaurant, and miscellaneous shops are anticipated.
Chairman Erickson ~ted that it appears the financial program
must be one of the first items to be resolved.
Chairman Erickson stated he favors the smaller shops and job-
creating facilities verses a warehouse facility.
Cu~,,~dssioner Williamson inquired regarding Mr. Curry's position of
negotiations with Minnegasco. Mr. Curry responded that he b2~s a
purchase agreement and explained that progress of the zoning
situation has to be made by May 10th or Minnegasco has an option to
cancel it.
(~irman Erickson introduced for discussion item 6, "A Resolution
Approving Midwest Exclusive Negotiations Agreement and Authorizing
President and Exeoative Director to Sign".
City Manager DoD~hue, stated an agreement has been developed to
enter into agreement with Midwest Management for the properties
surrounding Nevada and 42nd in developin~ an Automall. He stated
the agreement provides 60 ~days for exclusive negotiations between
the City and Midwest Management. During this 60-day period, the
City may not consider any other developer. He stated this is a
negotiations agreement only; it does not commit to the development.
Jay Schowalter commented that he is concerned that the proposed
Autcmall may draw business aw~y from the current auto service
related businesses. He expressed that perhaps a business which is
not already in the area should be considered such as a restaurant,
budget power, etc.
Co,~L~ssioner Enck stated that it is not the City's obligation to
protect businesses as far as competition. He stated the City has
advertised and promoted in an effort to receive developers for this
site and only one developer has Mt the criteria for redevelopment.
Tom Oestrich, Autohaus representative, stated that he feels the City
should keep .in m/nd that there may be other interested developers
once the 42nd Avenue development is complete.
1989
RF~#89--2
Mr. Steve Mattson, an owner of Cook Automotives, stated he is not
concerned with the co~etition of Automall. He stated he believes
the area will be greatly enhanced by this development. He inquired,
however, what other purpose the facility may serve if the automall
does not survive.
Cui~,~,~ssioner Williamson commented that she hopes the City has made
every possible effort to ensure that this facility is the best
possible business for the site. She inquired whether a budget power
or any other developers have been considered.
City Attorney Sondrall stated the EDA would have to mak~ a decision
as to whether there are any other develops who have come forward to
develop that lot. He stated he understands there have been two
other developers but neither have mot the guidelines established by
the HRA.
Co~u,~ssionerDalycommentedthatthe Cityhad determined the Paro's
Pub lot was too small for a restaurant.
Commissioner Williamson inquiredwhetherthe only EDAinvolvement
would becondemnation.
City ManagerDonahue stated everything is in placeto proceed on
condemnation but nothing hasbeen formally set. He stated a
condemnation action was initiatedtwo years ago. He stated
negotiations withthe proposed developermustbe resolved to
determine what is necessary to acquire the property.
Commissioner Otten introduced the foregoing resolution and moved its
adoption: '~SO~C~ APPRDV]/qG M/I~4~"T ~ EXCLUSIVE
DII~DCII)R TO SIGNTM. 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,
Daly, Otten, Enck, Williamson; and the following voted against the
same: None; absent: None; whereupon the resolution was declared
duly passed and adopted, and was signed by the president which was
attested to by the secretary.
Motion was made by Co-~m~issioner Enck, seconded by O~mYHssioner Otten
to a~ourn the meeting. All present voted in favor. The New Hope
EDA adjourned at 11:10 p.m.
Respectfully submitted,
City Manager/Acting City Clerk
New Hope-~ ;~
Page 5
March27, 1989
CITY OF N~ ~9PE
4401 X~LC~ AV~3E NO~H
~ OOONTY, ~ 55428
April 10, 1989
City F~] 1, 8: 25 P.M.
APPROVE
M~FJfESOF
MARf~{27, 1989
N~ HOPE
Item4
RDA %89--3
President Erickson called the meeting of the Economic Development
Authority to order at 8:25 p.m.
Present: Erickson, Daly, Otten, Enck
Absent: Williamson
Motion by Cu~m,~ssioner Enck, seconded by Commissioner Otten to
approve the EDA minutes of March 27, 1989. All present voted in
favor.
President Erickson introduced Item 4, "Resolution Accepting Control,
Authority and Operation of Housing and Redevelopment Project Nos.
80-1, 81-1, 82-1, 85-1, 85-2, and 86-1 and Tax Increment District
Nos. 1600 through 1606.
Commissioner Enck introduced the foregoing resolution and moved its
adoption: '~ESOI/TI~ON ACc~JN~/NG (IH~/~OL, ~ AND OPERATION OF
~KJUSING AND REE~VELO~ ~ N0~. 80-1, 81-1, 82-1, 85-1, 85-2,
AND 86-1 AND TAX INCR~2~P D~CT NO~. 1600 ~ 1606". The
motion for the adoption of the foregoing resolution was seconded by
C~,,,,~ssioner Otten, and upon vote being taken thereon; the following
voted in favor thereof: Erickson, Daly, Otten, Enck; and the
following voted against the same: None; absent: Williamson;
whereupon the resolution was declared duly passed and adopted, and
was signed by the president which was attested to by the secretary.
City Manager Donahue stated two letters were submitted by Mr. Iasky;
one letter was addressed to the EDA and the other to himself. The
letters were regarding the Paros Pub Site, 7180 42nd Avenue North.
Co~a~dssioner Enck stated the letter of April 4, 1989, addressed to
Mr. Donahue outlined three items. First, that Mr. Lasky would look
favorably on a friendly condemnation. Secondly, if an agreement
cannot be reached, they want to develop the site in the manner
discussed with Mr. Denahue (orally). And, thirdly, faced by the
cancellation of the lease by his tenants they must move rapidly to
make the existing building produce some income.
Motion made by Commissioner Enck, seconded by Co~m-~-,~ssioner Daly to
accept the letter~ su~~ by Mr. Lasky raking them a part of the
FhA record. Ail present voted in favor.
New Hope EDA
Page 1
April 10, 1989
Motion was made by Commissioner Enck, seconded by Co~mnissioner Daly
to adjourn the meeting. All present voted in favor. The New Hope
E~A adjourned at 8:30 p.m.
City Manager/Acting City Clerk
New Hope EDA
Page 2
April 10,1989
CITY OF N~
4401 XYIC~ AV~KIE
~ C0[~TY, MINNESUCA 55428
April 24, 1989
city F~ll, 8:30 P.M.
APPROVE
M~3PF~ OF
APRIl. 10, 1989
VACATE
President Erickson called the meeting of the Economic Development
Authority to order at 8:30 p.m.
Present: Erickson, Daly, Otten, Enck, Williamson
Motion byC~mt~ssionerDaly, seconded byCu~ssionerEnckto
approvethe EDAminutes of April 10, 1989. All present voted in
favor.
President Erickson introduced Item 4, "Rmsolution Directing Acting
City Clerk to Publish Notice for Public Hearing to Vacate Public
Right-of-Way".
Cc~missioner Williamson inquired where the right-of-way is located.
Commissioner Enck explained that when the road was moved to the west
off of Paro's Pub property a piece of land was left and is no longer
n~ed for the right-of-way for the road.
C~m¥,~ssioner Enck introduced the foregoing resolution and moved its
adoption: '~ESOLUi~C~ DIR~Clql~ AC1TNG CITY c~RRK TO 1W3~.LT.q~ NOTI(]~
FOR I~J~W./C HEARING TO VA~2ATE IW3RL/C RI6~T-OF-~AI"'. The motion for
the adoption of the foregoing resolution was seconded by
C~,,t,~ssioner Otten, and upon vote being taken thereon; the following
voted in favor thereof: Erickson, Daly, Otten, Enck, Williamson;
and the following voted against the same: None; absent: None;
whereupon the resolution was declared duly passed and adopted, and
was signed by the president which was attested to by the secretary.
Motion was made by Co~-m¥,~ssioner Enck, seconded by Commissioner Daly
to a~curn the meeting. All present voted in favor. The New Hope
EDA adjourned at 8:35 p.m.
City Manager/Acting City Clerk
New Hope EDA
Page 1
April 24, 1989
CITY OF ~ I~DPE
4401 ~ AVt~KJE ~
~ O00NTY, ~ 55428
May 22, 1989
City ~]], 7:40 P.M.
APPRDVE
MIIFOTESOF
24, 1989
PJ~ ./C ~EARING
Item4
New Hope EDA
Page 1
President Pro Tern Otten called the meeting of the Economic
Development Authority to order at 7:40 p.m.
Present: Otten, Daly, Williamson
Absent: Erickson, Enck
Motion byCo~LuL~ssionerWilliamson, seconded byCcmm-~ssionerDalyto
approvetheEDAminutes of April 24, 1989. All present voted in
favor.
President ProTemOttenopenedthe public hearingon Vacation of
Public Right of Way for a Portion of Nevada Avenue North (#431).
City Manager Donahue stated the public hearing is to consider the
vacation of the property between Nevada Avenue and Paro's Pub. The
City ordinance requires that a public hearing is held regarding
vacation of street right-of-way.
Mr. Donahue stated staff is uncertain whether the City should
proceed with vacating the property. He stated one option would be
to vacate the property and it would somewhat negate the cost of the
taking as a result of the 42nd Avenue development. He ccmm-~nted
that by vacating the property the value of the property would be
incre~__~d. He stated it would be disadvantageous to increase the
v~lue if the City wishes to purcba.~e the Paro's Pub site property.
Mr. Donahue rec~,,~nded taking no action tonight and to continue the
public hearing on June 26, 1989.
City Attorney, Steve Sondrall, stated the City has continued the
hearing on the taking of Paro's Pub to an indefinite date. He
explained that the City may be able to offset dollars in the taking
by vacating this property. He ~ted that the City is
considering plans to acquire the entire Paro's Pub site and if that
is accomplished the vacation matter resolve itself. He stated in
the event that the City decides to acquire the Paro's Pub site it
may not be advantageous to vacate the property now since that would
result in purchasing back property which was the City's in the first
place.
Motion was made by Co~L,~ssioner Daly, seconded by C~m,~ssioner
May 22, 1989
Williamson to c~ui~ the public hearir~ c~ "Vacmtic~ of Public
Right of W~y for a Portic~ of Nevada Avenue North" to June 26, 1989/'~'
All present voted in favor.
City Manager Donahue requested that a special closed EDA meeting be
scheduled to all~ discussion of the Paro's Pub property
development.
Motion was made by Co~m~issioner Daly, seconded by Co~m,~ssioner
Williamson to hold a closed meeting of the Eoonc~ic Devel ~oI~nt
Authorit~ o~ ~day, June 1, ~989, at 6 p.m. All present voted in
favor.
Motion was rode by Cc~m~,~ssioner Daly, seconded by C~,,~,~ssioner
Williamson to adjourn the ~. All present voted in favor.
New Hope EDA adjourned at 7:50 p.m.
The
City Manager/A~ting City Clerk
New Hope
Page 2
May 22,
1989
CITY OF NEW HOPE
4401 Xylon Avenue North
Hennepin County, Minnesota 55428
ApprOVed EDA Minutes
Special Meeting #1 (Closed)
June 1, 1989
City Hall, 7:30 P.M.
The New Hope Economic Development Authority met in special
session pursuant to due call and notice thereof; President
Erickson called the meeting to order at 7:31 p.m.
Present: Erickson, Enck, Daly, Williamson, Otten
Absent: None
The balance of minutes are filed with the 6/1/89 EDA
agenda packet as it was a closed meeting.
CITY OF N~ I~DPE
4401 XYIDN AV~KIE ~
~ ODUNTY, ~ 55428
June 12, 1989
City Hall, 10:30 P.M.
APPROVE
~OF
MAY 22, 1989
JUNE 1, 1989
President Pro Tem Enck called the meeting of the Economic
Development A3athority to order at 10:30 p.m.
Present: Daly, Otten, Enck, Williamson
Absent: Erickson
Motion by Co~mYHssioner Otten, seconded by Commissioner Daly to
approve the EDA minutes of May 22, 1989 and June 1, 1989 (special
meeting #1). All present voted in favor.
Motion by Coa~Hssioner Williamson, seconded by President Pro Tem
Enck to enter an FDA Executive Session for discussion regarding
property at 7180 42nd Avenue North. All present voted in favor.
Motion was made by Commissioner Otten, seconded by Commissioner
Daly to adjourn the meeting. All present voted in favor. The New
Hope EDA adjourned at 10:40 p.m.
~fully submitted,
Dan Donahue
City Manager/Acting City Clerk
New Hope
Page 1
June 12, 1989
CITY OF N~ t~DPE
4401 ~ AVf~3E ~
~ (I~]~lSf, ~ 55428
June 26, 1989
City }z~] 1, 8:55 P.M.
APPROVE
MINUTES OF
JUNE /2, 1989
PLAN 89-1/89-2
Items 4 ar~ 5
REDEgm~ n~
PlAN 89-1
Item 4
~nPM~T
89-2
Item5
New Hope EDA
Page 1
President Erickson called the meeting of the Economic Development
Authority to order at 8:55 p.m.
Present: Daly, Otten, Erickson, Enck, Williamson
Absent: None
Motion by Commissioner Enck, seconded by Commissioner Williamson to
approve the EDA minutes of June 12, 1989. Voting in favor: Daly,
Otten, Enck, Williamson; Abstain: Erickson.
EDA items 4 and 5 were considered simultaneously with Council agenda
items 7.3 and 7.4. Refer to June 26, 1989, Council Meeting Minutes
for discussion matter.
President Erickson introduced for discussion item 4, Consideration
of Resolution Relating to Redevelopment Plan No. 89-1, Redevelopment
Project No. 89-1 to be Undertaken Pursuant Thereto and Tax Increment
Financing Plan No. 89-1; Approving Redevelopment Plan No. 89-1 and
Redevelopment Project No. 89-1 to be Undertaken Pursuant Thereto,
Tax Increment Financing Plan No. 89-1 and the Establishment of Tax
Increment Financing (Redevelopment) District No. 89-1, and
Requesting the Approval of the City council.
Motion made by C~t,~,]ssioner Enck, seconded by Commissioner Daly to
deny adoption of EDA resolution relating to redevelopment plan no.
89-1. Voting in favor: Dely, Enck, Williamson. Voting against:
Otten, Erickson. The motion was carried.
President Erickson introduced for discussion item 5, Consideration
of Resolution Relating to Redevelopment Plan No. 89-2, Redevelopment
Project No. 89-2 to be Undertaken Pursuant Thereto and Tax Increment
Financing Plan No. 89-2; Approving Redevelopment Plan No. 89-2 and
Redevelopment Project No. 89-2 to be Undertaken Pur~]ant Thereto,
Tax Increment Financing Plan No. 89-2 and the Establishment of Tax
Increment Financing (Redevelopment) District No. 89-2, and
Requesting the Approval of the City Council.
Motion made by Co~tumissioner Enck, seconded by Co~m-dssioner Daly to
deny adoption of EDA resolution relating to redevelopment plan no.
89-2. Voting in favor: Daly, Enck, Williamson. Voting against:
Otten, Erickson. The motion was carried.
June 26, 1989
I~J~ .~C HEAR/]~G
Item6
~neEDAwas suspended at 10:55 p.m. and reconvenedat 11:50 p.m.
President Erickson opened the public hearing to consider vacation
of public right-of-way.
City Attorney, Steve Sondrall, stated authorizing the vacation will
be complicated due to the situation with Paro's Pub and he suggested
continuing the public hearing.
Motion madebyCcmmdssionerDaly, seconded byCommissionerEnckto
t~blethepublic hearing toconsidervacation of public right-of-way
to July 24, 1989.
Motion was made by C~mt,~ssioner Williamson, seconded by C~i~,~ssioner
Enck to ad~ourn the meetir~. Ail present voted in favor. The New
Hope EDA adjourned at 11:55 p.m.
Respectfully submitted,
Valerie Leone
city Clerk
New Hope EDA
Page 2
June 26, 1989
CITY OF N~ ~PE
4401 XYION AV~3E NOR~{
~ OSter'f, MINNESOT~ 55428
July 24, 1989
city ~!l, 8:21 P.M.
APPROVE
M/I~Ji]~S OF
JUNE 26, 1989
I~BLIC HEAR~
Item 5
New Hope EDA
Page 1
President Pro Tem Enck called the meeting of the Economic
Development Authority to order at 8:21 p.m.
Present: Enck, Otten, Williamson
Absent: Erickson, Daly
Motion by Commissioner Williamson, seconded by Commissioner Otten to
approve the EDA minutes of June 26, 1989. Voting in favor: Enck,
Otten, Williamson; Absent: Erickson, Daly.
President Pro Tern Enck introduced for discussion item 4, Approval of
Appraisal Fee Quote for Vacant Industrial T and East of Public Works
- Boone Avenue North at ApprOximately 55th Avenue (PID #06-118-21 34
0007).
City Manager, Dan Donahue, explained this is the first step
necessary to consider the possibility of acquiring the property
between North Ridge Care Center and the Public Works Building.
The EDA has expanded Tax Increment Districts 1603 and 1604 (North
Ridge) to include the vacant property east of Public Works Garage at
Boone and approximately 55th Avenue. The purpose of this expansion
is to explore the feasibility of creating a parking ar~a for the
industrial prOperties and the North Ridge Care Center.
Staff has received a fee quote for the appraisal from Brad
~orklund. The cost is $800 and would be funded with tax increment
proceeds.
Motion rode by Commissioner Otten, seconded by Commissioner
Williamson to approve the apprm~al fee quote to be condu~ by
Brad Bjorklu~ for $800. All present voted in favor.
President Pro Tern Enck opened the public hearing to consider
vacation of public right-of-way.
Mr. Donahue stated this public hearing was opened on May 22, 1989,
continued until June 26, 1989, and again continued until July 24,
1989.
The public hearing was scheduled to consider vacation of right-of-
July 24, 1989
way no longer needed by the City of New Hope. The right-of-way is
located adjacent to the property at 7180 42nd Avenue North (Paro's
Pub).
City Attorney, Steve Sondrall, provided a brief history of the
request. He co~m~nted that the condemnation actions include taking
a parcel for the street; and starting a condemnation action to
acquire the entire parcel. He stated if the EDA d~cides to acquire
the entire parcel it does not want to acquire additional land that
is already owned by the City. There is a risk by not taking any
action.
Mr. Sondrall stated a cul~,,,,~ssioner's hearing will be scheduled in
the near future concerning the street easement, and if the City has
not vacated the property by the time the Commissioners decide the
question of value the City will be unable to argue the corresponding
offset anyway.
He suggested closing the public hearing and continue the action for
an additional 90 days. He ~ted that if the EDA denied the
action now and later decided to vacate, the procedure would have to
begin again with publications, etc.
Motion made by Co~m~issioner Williamson, seconded by Commissioner
Otten to close the public hearing considering vacation of public
right-of-way. All present voted in favor.
Motion made by Commissioner Williamson, seconded by Commissioner
Otten to cont/nue any decision regarding the v~cation of public
right-of-way until October 23, 1989, F~A ~ting.
in favor.
All present voted
Motion was made by Cu~issioner Otten, seconded by President Pro Tern
Enck to adjourn the meet/rig. All present voted in favor. The New
Hope EDA adjourned at 8:34 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope E~A
Page 2
July 24,
1989
~ OF N~ ~OPE
4401 ~ AV~3E ~
~ (I~]NTY, MINNESO~% 55428
.S~fos~er 11, 1989
City Hall, 8:07 P.M.
APPRDVE
M//FOTESOF
JULY24, ~989
A[3/O MAT ~',
E~AA~ OPM~qT
Item4
New Hope EDA
Page 1
President Erickson called the meeting of the Economic Development
Authority to order at 8:07 p.m.
Present: L'Herault, Otten, Erickson, Enck
Absent: Williamson
Motion byCommissionerEnck, seconded byCommissionerOttento
approve the EDAminutes of July 24, 1989. Voting in favor: Otten,
Enck; Abstain: L'Herault, Erickson; Absent: Williamson.
President Erickson introduced for discussion Item 4, Discussion
Regarding the Status of the Proposed AutoMall Development at 7100-
7180 42ndAvenue North.
City Manager, Dan Donahue, asked the City Attorney to provide a
brief update.
City Attorney, Steve Sondrall, stated a petition for condemnation
has been filed anda hearing is scheduled for September 18, 1989.
He stated he does not feel the hearing will be contested so there
ought to be a finding t hat there is a public purpose for thetaking.
He stated that will initiate the process for acquiring the property.
Mr. Sondrall indicated that it maybe quite a whilebefore the
actual title tot he property is obtained. He stated that he
suspects thenegotiatingprocesswill begin again, but it is
difficult to negotiate with Mr. Laskybecausehe is firm about the
price of the property and it appearsunreasonablyhigh.
Mr. Sondrall stated a purchase agreement will be given to the Auto
Mall and the agreement will be contingent upon the City's ability
to acquire title to the property.
Commissioner Enck inquired whetherthere is the availability of a
mediation session withMr. Laskywhichmight accelerate the
negotiation process. Mr. Sondrall stated perhapsMr. Laskywouldbe
willing to.do so voluntarilybut it is not a condemnation
requirement.
Commissioner Enck inquired on the status of McDonalds. Mr. Sondrall
stated he recentlycontactedMcDonalds to ask whenwe could expect
the closing date. He stated hewas informed that a closing date
September 11, 1989
should be soon. He stated we have a ~igned easement agreement from~-~
the shopping center people and that easement agreement is now
circulating within McDonalds' corporate general offices in Illinois
and there should not be any problems. He stated he also understands
that McDonalds is working with Midwest Federal to obtain a non-
disturbance agreement.
President Erickson inquired whether the City may ha~e the
opportunity to view the financial strength of Auto Mall. He stated
failure of the Auto Mall would result in a vacant building. Mr.
Donahue stated the successfulness is dependent upon leasing the
building.
Mr. Donahue stated the City can request financial statements since
it is entering negotiations with Auto Malls.
Co~.~.~ssioner Otten stated that the other Auto Malls appear very
successful as there are no vacancies.
Motion was made by Commissioner Enck, seconded by Commissioner
L'Herault. to adjourn the meeting. All present voted in favor.
New Hope EDA adjourned at 8:17 p.m.
The
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 2
September 11, 1989
~ OF N~
4401 ~ AV~LTE
~ (XXHTrY, ~ 55428
.Sept~ 25, 1989
City TT~ll, 8:05 P.M.
APPROVE
M/]FOTES OF
SEPt. 11, 1989
AUTOMAT,T.
Item 4
President Erickson called the meeting of the Economic Development
Authority to order at 8:05 p.m.
Present: L'Herault, Otten, Erickson, Enck, Williamson
Motion by Co~t,~,~ssioner Enck, seconded by Commissioner Williamson to
approve the EDA minutes of September 11, 1989. All present voted in
favor.
Item 5 was added to the agenda.
President Erickson introduced for discussion Item 4, Resolution
Approving Purchase Agreement Between the Economic Development
Authority in and for the City of New Hope and Midwest Automalls,
Inc. for the Property Located at 7180 42nd Avenue North; Authorizing
the President, Secretary-Treasurer, and Executive Director to Sign.
City MaDmger, Dan Donahue, stated staff has prepared a purchase
agreement with Midwest Automalls, Inc. for the property located at
7180 42nd Avenue North (Paro's Pub). The purchase agreement calls
for a sale of the property in the amount of $425,000. The purchase
order also includes a condition that the EDA obtain title to the
property either by direct negotiations or by eminent domain
proce~lings.
He stated the purchase agreement would guarantee Midwest Automalls
as buyer/developer of the property if and when the city takes
possession of the property. He stated the agreement would become
void if the city does not acquire the property.
Commissioner Enck inquired whether the contract has a 'sunset'
provision. Mr. Sondrall stated Paragraph 3 of the contract includes
"said conveyance to take place within 24 months after the date of
this agreement".
Commissioner Williamson asked whether the agreement would affect
Cooks Automotive. Mr. Donahue stated the agreement has nothing to
do with Cooks Automotive property. He stated Midwest Automalls has
worked out an arrangement with Cooks Automotive of which the City is
not involved.
New Hope EDA
Page 1
Septeraber 25, 1989
#89-5
New Hope EDA
Page 2
Commissioner Otten introduced the foregoing resolution and moved it~
adoption: 'R~ESOI33TIC~ APPRDVIN~ ~ AG~FFMENT ~ ~
~OONC~IC E~V~~ ~ IN AND FOR ~ CITY OF NEW HOPE AND
MIE~EST ~Y.Y.q, INC. ~DR ~ i~OI~Y IDCATED AT 7180 42ND AVENUE
DIlq~CIOR TO SI6~P'. The motion for the adoption of the foregoing
resolution %fas seconded by Co;m~Hssioner L'Herault, .and upon vote
being taken thereon; the following voted in favor thereof:
Erickson, L'Herault, Otten, Enck, Williamson; and the following
voted against the same: None; absent: None; whereupon the
resolution was declared duly passed and adopted, and was signed by
the president which was attested to by the secretary.
Mr. Donahue stated staff has been negotiating with representatives
of McDonalds. He stated McDonalds is anxious to begin construction
but it must resolve some final costs first.
City Attorney, Steve Sondrall, stated he has been dealing with Randy
Berge from McDoD~lds. He stated McDonalds is requesting a reduction
of $4,000 in the purchase price due to extra costs. McDonalds has
incurred extra costs with obtaining an easement from New Hope Swim
and Fitness. Relocation of the monitoring wells as ordered by the
Minnesota Pollution Control Agency has also resulted in added
expenses.
Mr. Sondrall co~m~nted that Mr. Berge indicated the possibility of
postponing construction until March of 1990. He stated McDonald's
would be willing to take the risk of starting the project
immediately if the City would reduce the purchase price by $4,000.
He explained that due to the weight restrictions on the road, if
there was an early frost, it would be possible that McDonalds would
be unable to asphalt the site after October 15. Mr. Sondrall stated
Mr. Berge feels it may be possible to get the wells relocated, within
two weeks and essentially that leaves between two to six weeks to
complete the site preparation (asphalt) in order to get the building
operating by the end of the year.
Mr. Sondrall com,.ented that if McDonald's waited until next March
the City would lose approximately $11,000 in interest (based on ten
percent interest rate of $225,000).
Mr. Donahue stated that when the PCA ordered placement of the wells,
a location should have been selected which would not interfere with
future development; however, it was believed that the wells would
only be necessary a short while. He r~ded that the City take
partial responsibility in relocating at least one of the wells which
would amount to approximately $4,000.
Co~missioner Williamson inquired if and when the wells will
eventually be removed. Mr. Donahue stated the PCA will make that
determination and it would be Sinclair's responsibility to pay for
September 25, 1989
the cost of removal.
Mr. Sondrall commented that originally the PCA required the wells to
be in place for one year and the year expired in April. Now the PCA
is feeling that they may be required for another year or possibly
longer. He stated if the wells are relocated to a place under
shrubbery and out of the vray they may never need removal.
Motion made by Commissioner Otten, seconded by President Erickson,
authorizing the reductic~ of the pursuance price of property at 4201
Winnetk~ not to exceed $4,000. F~Ycion is subject to McDo~]ds
begimni-~ oc~/%~-tic~ i~m~diately. Voting in favor: Enck,
L'Herault, Otten, Erickson. Voting against: Williamson. The motion
Motion w~s made by Commissioner Enck, seconded by Commissioner
L'Herault to adjourn the meeting. Ail present voted in favor.
New Hope EDA adjourned at 8:35 p.m.
The
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 3
September 25, 1989
CITY OF N~ ~DPE
4401 XYION AVt~qUE NO1RR/~
~ O0[RqTY, MI]qNESOEA 55428
M~eting #10
October 23, 1989
City Hall, 7:15 P.M.
(:~i~T,T, TO ORDER
APPROVE
M]lqUTESOF
SETUP. 25, 1989
REDEVELOPMENT
PLAN 82-1
TIF PLAN 82-1
Item4
#89-6
Item 4
President Erickson called themeeting of the Economic Development
Authority to order at 7:15 p.m.
Present: L'Herault, Otten, Erickson, Enck, Williamson
Motion by Commissioner Otten, seconded by Commissioner Enck to
approve the EDAminutes of September 25, 1989. All present voted in
favor.
President Erickson introduced for discussion Item 4, Resolution
Approving 1989 An~ndment to Redevelopment Plan 82-1 and Tax
Increment Financing Plan 82-1 and RequestingtheApproval oft he
City Council.
City Attorney Steve Sondrall explained that staff is proposing to
amend the redevelopment plan area not expand the tax increment
district but expand the plan area where tax increment district
Mr. Donahue stated the amendment is to incorporate into the plant he
civic center park area and the property next to the VOA. He stated
at this point in time he is not recommending spending any money on
the property next to the VOA. However, if the City desires to use
tax increment financing for this property in the future, this
amendment will allow the City to do so.
Refer to October 23, 1989, Council Meeting Minutes for discussion
matter (Agenda Item7.1).
Co~t~ssioner Enck introduced the foregoing resolution and moved its
adoption: '~ESOU3I~ONAPPROVING 1989~TOREDEVEIOPMENT
PIAN82-1ANDTAXINCR~MENTFINANCINGPIAN82-1ANDR~R~HE
APPROVAL OF~EClTYOOUNCIL". The motion forthe 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, Enck, Williamson; and the following
voted against the same: None; absent: None; whereupon the
resolution w~s declared dulypassed and adopted, and was signed by
the president whichwas attested tobythe secretary.
New Hope EDA
Page 1
October 23, 1989
PARD ' S ~ .~
Item 5
President Erickson introduced for discussion Item 5, Consideration
of Vacation of Right-of-Way Located at 7180 42nd Avenue North
(Paro' s Pub).
Mr. Donahue stated that on July 24, 1989, the EDA closed the public
hearing on the vacation of right-of-way located adjacent to the
property at 7180 42nd Avenue North (Paro's Pub). The EDA elected to
table a decision on the issue until October 23, 1989.
He stated staff is requesting that the item be tabled until January
22, 1990.
Motion made by Commissioner Enck, seconded by Commissioner L'Herault
to table consideration of vacation of right-of-way located at 7180
42ndAvenue North (Paro's Pub) until January 22, 1990. All present
voted in favor.
Motion wasmadeby Commissioner Enck, seconded by Commissioner
Ottento adjourn themeeting. All present voted in favor. The New
Hope EDA adjourned at 7:18 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 2
October 23,
198..
CITY OF N~ }{OPE
4401 XYLON AV~qUE
I~ OC~JNTY, MIh~SfYCA 55428
November 13, 1989
City Hall, 10:11 P.M.
APPROVE
MINUTES OF
OC~. 23, 1989
A//fOHAUS
Item4
New Hope EDA
Page 1
President Erickson called the meeting of the Economic Development
Authority to order at 10:11 p.m.
Present: L'Herault, Otten, Erickson, Enck, Williamson
Motion byCol~u~ssionerEnck, seconded by Commissioner Williamson to
approve theEDAminutes of October 23, 1989. All present voted in
favor.
President Erickson introduced for discussion Item 4, Consideration
of Request byAutohaus/Thomas Boettcher to Assist in Financing the
Acquisition of Property Located at 7675 42nd Avenue North (New Hope
Animal Hospital).
Mr. Donahue statedMr. Boettcher is requesting that the City assist
in financing the acquisition of the New Hope Animal Hospital at 7675
42ndAvenue North plus the property to the rear currently owned by
the school district. The acquisition would allow Mr. Boettcher to
expand his existing business and would also eliminate a non-
conforming property. Ms. Rebecca Yanisch of Pubic Financial
Systems was asked to analyze the request from a financial standpoint
and she has prepared a memorandum describing the financial
transaction.
Commissioner Enck inquired whethertheparcel is adequate to build
upon for a free-standing facility. Mr. Don~hue stated it is a legal
non-conforming and would not fit under today's code.
Commissioner Enck next suggested combining the three parcels as one
property. Mr. Donahue stated it appears to be advantageous to
combine the legal non-conforming with the neighboring property if
possible. Co~m~,~ssioner Enck stated he would like to have one owner
for the entire area.
Mr. Donahue stated the reco~mndation by the financial advisor is if
the City wishes to pursue the low interest financing, that it does
so through a lease program. The City would retain title to the
property and lease it to Mr. Boettcher for a period of between 10 to
15 years. At the end of that time there would be a balloon payment
equal to the amount of the cost of the demolition of the current
Animal Hospital building. Also, any taxes to be paid would be berne
November 13, 1989
by Mr. Boettcher.
President Erickson questioned security. Mr. Donahue stated the
security is the land itself as the City will own it.
Mr. Donahue explained that Mr. Boettcher proposed that Autohaus make
a $20,000 down payment on the acquisition of the veterinary clinic,
while the City finances the remaining $137,000 over 15 years at
market interest rates. The payments on the City financed share
would be secured by Mr. Boettcher's personal guarantee.
Mr. Donahue stated the purchase price would include the cost of the
school district property.
Commissioner Enck stated before the final decision is made he would
like to have a form of security.
The EDA informed staff that it is interested in pursuing the item
and would like to discuss it again at a later date.
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 10:16 p.m.
Respectfully submitted,
/ ~~2~~
Valerie Leone
City Clerk
New Hope
Page 2
November 13, 19~_
CITY OF N~W }{OPE
4401 XYIDN AVt~FOE NOR~{
H~qNEPIN ~, MINNESC~A 55428
November 27, 1989
City Hall, 8:31 P.M.
APPROVE
MINUTES OF
NOV. 13, 1989
New Hope EDA
Page 1
President Pro Tern Enck called the meeting of the Economic
Development Authority to order at 8:31 p.m.
Present: L'Herault, Otten, Enck, Williamson
Absent: Erickson
Motion by Commissioner Otten, seconded by Commissioner Williamson to
approve the EDAminutes of November 13, 1989. Ail present voted in
favor.
City Manager, Dan Donahue, stated the appraisal has been concluded
on the property located east of the North Park Plaza VOA. The
property would be utilized for the development of a 26-unit barrier
free housing development. He stated the property was appraised by
Bjorklund, Carufel, Lachenmayer, Inc. at $173,000 based on $3 per
square foot for 57,740 square feet. He stated that is the amount
recommended as an offer to purchase the property.
Mr. Donahue stated the property is owned by the shopping center,
there is no relationship with the VOAwhatsoever.
Commissioner Williamson inquired whether there was a problem with
the soil. Mr. Donahue stated not that he recalled but a soil test
couldbe conducted.
City Attorney, Steve Sondrall, stated prescreening of the property
such as soil borings could bedonebefo~e an offer is made.
Commissioner Otten asked what steps the EDA would take if the offer
is rejected. Mr. Donahuestated it could proceed through
condemnation action. He commented that the property must be tied up
by December or else the handicap project cannot advance. He stated
the grant request 'fort he extension mustbe submitted by January 1,
1990.
Mr. Donahue stated the property is in the tax increment district no.
6 and existing increment funds would be used to purchase the
property. He explained that the EDA could authorize the
condemnation in the case that the offer is not accepted.
Mr. Sondrall explained that condemnation action could begin as soon
as a resolution is adopted determining that the property is
November 27, 1989
necessary and there is a public purpose. He stated negotiations
could occur while the condemnation action is pending.
Commissioner Otten inquired if a lower price could be offered.
Sondrall responded t hat the offer has tobemadebased on the fair
market value.
Cu~uL~ssioner Williamson stated the property has been vacant for ten
years. She commented that there is not 100 percent assurance by HUD
that the property will be developed. She expressed concern
regarding the risk of the EDA purchasing the property with no
confi~ project.
Commissioner Otten stated there has been a number of parties
interested in purchasing the property; h~ever, the lot is not a
real buildable lot especially related to real estate/commercial
property.
Ms. Dunn stated the process cou]d begin and HUD could be asked to
conduct their site review andmake a commitment to theCity that the
site is either approved or not approved prior to the quick-take
condemnation option.
Mr. Donahue stated he will proceed with the soil testing.
EFt% #89-7
Item 4
Commissioner Otten introduced the foregoing resolution and moved its
adoption: "RESOI_i]'I~ON]]~--'TART,T.qHINGFA/~MARKETVALUEANDJUST
~ON IN~{EAMOUNTOF $173,000 FOR A POR~IONOFTHE PROPERI~
IDCATEDAT 4301-4461WI/qNEl~<AAVI~NIIE NORI~, NEW HOPE, HENNEPIN f~'~
COUNTY, MINNESOTA (PAR~OF PID #18-118-21 11 0014) AIYUHORIZING STAF~-
TO PREPAREItRqf~I~EOFFER''. The motion for the adoption of the
foregoing resolution was seconded by Commissioner Williamson, and
upon vote being taken thereon; the foll~ingvoted in favor
thereof: L'Herault, Otten, Enck, Williamson; and the following
voted against the saree: None; absent: Erickson; whereupon the
resolution was declared duly passed and adopted, and was signed by
the president whichwas attested tobythe secretary.
Commissioner Otten stated the motion authorizing the $173,000 offer
is contingent upon HUD's approval. Mr. Sondrall informed the EDA
that the purchase agreement will be made contingent upon approval by
HUD and favorableenvironmental testings to ensure that the property
can be used for the intended purpose.
Motion was made by Commissioner Williamson, seconded by Commissioner
L'Herault to adjourn the meeting. All present voted in favor. The
New Hope EDA adjourned at 8:55 p.m.
New Hope EDA
Page 2
Respectfully submitted,
Valerie Leone
City Clerk
November 27, 196
CITY OF N~ ~DPE
4401 XYION AV~qtIE ~
~ (/]O~l~, MINNESOZA 55428
December 11, 1989
City ~mll, 9:11 P.M.
APPROVE
NOV. 27, 1989
#89--8
It ~m_ 5
New Hope EDA
Page 1
President Erickson called the meeting of the Economic Development
Authority to order at 9:11 p.m.
Present: L'Herault, Otten, Erickson, Enck, Williamson
Motion by Co~m¥,~ssioner Enck, seconded by Commissioner L'Herault to
approve the EDA minutes of November 27, 1989. All present voted in
favor.
President Erickson stated Item 5 will be discussed prior to Item 4.
President Erickson introduced for discussion Item 5, Resolution
Authorizing Co~u~ncement of Eminent Domain Proceedings to Acquire
Private Property East of North Park Plaza within the City of New
Hope.
Mr. Donahue stated on November 27, 1989, the HRAauthorized staff to
make a purchaseoffer with contingenciestotheowners ofthe
property located east of North Park Plaza VOA. The purchase is
contingent upon suitable soils for the housing complexandsite
approval by HUD. The City offered $173,000 for the property and the
property owner has not accepted the offer.
Mr. Donahue stated in ordertocontinue with the project, staff
rec~=~_nds adopting the EDA resolution.
Co~u~ssionerWilliamson inquired whetherthis would lock the City
into the property. Col~umissioner Enck stated the resolution does not
implement the quick take procedure andthe City could still back out
after negotiations.
Co~Lu~ssionerEnck introduced the foregoing resolutionandmoved its
adoption:
~INGSTOAO~tlRIVATEPROPERi~fEASTOFNOR~PARKPIAZA
WrI~{IN~ECITYOFNEWHOPE". The motion for the adoption of the
foregoing resolution was seconded by Commissioner Otten, and upon
votebeingtakenthereon; the following voted in favor thereof:
Erickson, L'Herault, Otten, Enck, Williamson; and the following
voted against the same: None; absent: None; whereupon the
resolution was declared duly passed and adopted, and was signed by
the president whichwas attested tobythe secretary.
December 11, 1989
Item4
New Hope EDA
Page 2
President Erickson introduced for discussion Item 4, Consideration
of Request by Autohaus/Thomas Boettcher to Assist in Financing the
Acquisition of Property Located at 7675 42nd Avenue North (New Hope
Animal Hospital).
The acquisition would allow Mr. Boettcher to expand his existing
business and would also eliminate a non-conforming property. The
EDA considered this request on November 13, 1989, and asked staff to
develop a loan package which would have adequate security. Ms.
Rebecca Yanisch, Public Financial Systems, examined the financial
statements of Mr. Boettcher and Autohaus and has developed options.
Mr. Donahue stated Mr. Boettcher has requested $134,000 of iow
interest fiD2~ncing. He stated approximately $60,000 would be
unsecured. Mr. Donahue stated the EDA feels any financial
involvement should be fully collateralized.
President Erickson co~-~m-~nted that Mr. Boettcher would have a life
insurance policy in the amount of the City loan.
Mr. Thomas Boettcher was present and addressed the EDA. He stated
he could increase the cash from $20,000 to $25,000 and shorten the
loan term from 15 years to 8 years.
Mr. Boettcher stated the property will enhance the entire area. He
stated if a problem with Autohaus developed, the property would be
sold as a 'package'. He commented that no one would want to come
in and purchase the building as it currently exists without the
extra property. He stated his intent in buying the school district
property in the rear is to protect his equity position. He
c~,,~nted that he will be investing $40-50,000 for lights, paving,
etc.
President Erickson stated this should be viewed at as part of the
redevelopment project for 42nd Avenue.
Cu~,,~issioner Williamson inquired regarding the platting of the
property. City Attorney, Steve Sondrall, stated if the EDA owned
the title to the Animal Hospital property the City would remove that
property from the final plat and it would be held separately. He
explained that an arrangement could be made to require replatting
when the lease arrangements have been completed. He stated the
option currently being considered is a simple lease arrangement with
an option to purchase at the end of the lease term.
December 11, 198b
Com,~,issioner Enck stated the value of the land without the building
is $51,600. He asked whether the parcel is sufficient size, etc. to
comply with the City's requirements if the building is removed. Mr.
Donahue stated it would be non-conforming and it could not be
redeveloped under the current code. Commissioner Enck stated the
property, as a legal non-conforming property, should-be valued
New Hope EDA
Page 3
closer to $25,000.
Co~mdssioner Enck expressed a concern with the risk involved to the
EDA.
President Erickson commented that even though New Hope may never
have financed such a project there are other cities who have.
Mr. Boettcher stated he disagrees with the value of the property.
He cu~m~nted that next spring his business will be debt free other
than its inventory and mortgage which every other dealership in
Minneapolis has. He commented that the business has tripled its
profits since its first year. He stated four to six percent of the
business comes off the street. Mr. Boettcher stated that if they
acquire the frontage property even if that figure increases just to
ten percent, it would be pure profit.
President Erickson stated one of the first decisions that the EDA
must make is whether or not the City wishes to participate in the
financing of the animal hospital property. A vote was taken by the
Council: Otten and Erickson voted in favor; L'Herault and Enck were
opposed; and Williamson stated she is undecided at this ti~ but she
would approve if there was no risk involved to the city.
Mr. Boettcher ~ted that he plans to pay cash for the school
district property.
Dr. Herman stated the city needs to view it as part of upgrading
42nd Avenue rather than only viewing it from a financial standpoint.
Mr. Boettcher stated that he has an excellent credit rating.
President Erickson stated the financial security is the issue which
must be resolved.
Mr. Boettcher stated he will try to increase the cash up front and
shorten the loan term. He stated his next step will be to meet with
the school district.
President Erickson stated the EDAwill discuss the item again at
their December 26, 1989, meeting.
Motion was made by Co-~mYdssioner Enck, seconded by Commissioner
Williamson to adjourn the meeting. All present voted in favor.
New Hope EDA adjourned at 10:00 p.m.
~ne
Respectfully submitted,
Valerie Leone
City Clerk
December 11, 1989
CITY OF N~ ~E
4401 XYIf~ AV~3E ~
~ (/~]~Uf, M/I~ESUEA 55428
#14
Deoe~ber 26, 1989
City }~ll, 7:25 P.M.
APPROVE
MINglES OF
E~C. 11, 1989
President Erickson called the meeting of the Economic Development
Authority to order at 7:25 p.m.
Present: Erickson, L,Herault, Otten, Enck
Absent: Williamson
Motion by Commissioner Otten, seconded by Cu~,,~Hssioner Enck to
approve the EDA minutes of December 11, 1989. Ail present voted in
favor.
Motion by Cu~mYHssioner Enck, seconded by Co~ssioner Otten to
enter an EDA Executive Session for discussion regarding eminent
dc~ain proceedings for the property east of North Park Plaza, City
of New Hope, Minnesota. Ail present voted in favor.
Motion was made by Cu~,,~Hssioner Otten, seconded by Ccmm~issioner
Enck to a~curn the meetir~. Ail present voted in favor. The New
Hope EDA adjourned at 7:35 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 1
December 26, 1989