011413 EDACITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes January 14, 2013
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 8:16 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Daniel Stauner, Commissioner
Staff Present: Kirk McDonald, City Manager
Curtis Jacobsen, Director of Community Development
Valerie Leone, City Clerk
Jeff Sargent, Community Development Assistant
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Elder, seconded by Commissioner
Stauner, to approve the Regular Meeting Minutes of July 23, 2012. All
present voted in favor. Motion carried.
Motion was made by Commissioner Elder, seconded by Commissioner
Stauner, to approve the Regular Meeting Minutes of November 19, 2012. All
present voted in favor. Motion carried.
Motion was made by Commissioner Elder, seconded by Commissioner
Stauner, to approve the Executive Meeting Minutes of November 19, 2012.
All present voted in favor. Motion carried.
4200 & 4300 XYLON President Hemken introduced for discussion EDA Item 4, Approval of a
Item 4
blight resolution for the properties located at 4200 and 4300 Xylon Avenue
North; and approval of resolutions authorizing internal (interfund) loans to a
future TIF District for the properties located at 4200 and 4300 Xylon Avenue
North (improvement project no. 893).
Mr. Curtis Jacobsen, director of community development, stated Item 4
contains three actions relating to the demolition of the Kmart/Wells Fargo
properties: the first item relates to the blight analysis which was completed by
LHB, Inc. and the other two resolutions for interfund loans are similar to the
resolutions considered at the council meeting.
Mr. Jacobsen stated the report from LHB, Inc. has been completed and both
parcels meet the two-fold test for blight: 1) 70% of the parcels have to be
covered; and 2) more than 50% of the structures have to be considered
substandard. Mr. Jacobsen stated the properties meet the blight test criteria
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and have ample structural deficiencies to create a TIF district on these two
properties within the next three years.
Mr. Jacobsen stated it is recommended the EDA approve interfund loans for
advancement of funds in connection with the Kmart/Wells Fargo
acquisition/demolition. One resolution authorizes an interfund loan of up to
$200,000 from TIF District 86-1 to pay for costs of demolition of the buildings,
remediation of environmental conditions, and qualifying improvements and
interest. The second resolution authorizes an interfund loan of up to $100,000
from TIF District 86-1 to pay for administrative expenses including legal and
financial advisors’ fees and interest. The city will have the flexibility to
reimburse itself in the future if and when a TIF District is created and tax
increments are derived from the TIF District.
RESOLUTION 2013-01 Commissioner Stauner introduced the following resolution and moved its
Item 4 adoption “A RESOLUTION FINDING THE EXISTENCE OF
IMPROVEMENTS AND STRUCTURALLY SUBSTANDARD BUILDINGS
ON REAL PROPERTY THAT MAY BE INCLUDED IN A TAX
INCREMENT DISTRICT, PURSUANT TO MINNESOTA STATUTES,
SECTION 469.174, SUBDIVISION 10(d).” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Hoffe, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder,
Hoffe, Lammle, Stauner; and the following voted against the same: None;
Abstained: None; Absent: None; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the
executive director.
RESOLUTION 2013-02 Commissioner Elder introduced the following resolution and moved its
Item 4 adoption “RESOLUTION AUTHORIZING AN INTERFUND LOAN UP TO
$200,000 FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH
A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED
BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY.” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Stauner, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder,
Hoffe, Lammle, Stauner; and the following voted against the same: None;
Abstained: None; Absent: None; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the
executive director.
RESOLUTION 2013-03 Commissioner Stauner introduced the following resolution and moved its
Item 4 adoption “RESOLUTION AUTHORIZING AN INTERFUND LOAN UP TO
$100,000 FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH
A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED
BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY”. The motion for the adoption of the
foregoing resolution was seconded by Commissioner Lammle, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder,
Hoffe, Lammle, Stauner; and the following voted against the same: None;
Abstained: None; Absent: None; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the
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executive director.
ADJOURNMENT The New Hope EDA adjourned at 8:21 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
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