031014 EDACITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes March 10, 2014
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 7:25 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
Chris Long, City Engineer
Bob Paschke, Director of Public Works
Susan Rader, Director of Parks and Recreation
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Hoffe, seconded by Commissioner
Lammle, to approve the Regular Meeting Minutes of January 13, 2014. All
present voted in favor. Motion carried.
IMP. PROJECT 911 President Hemken introduced for discussion EDA Item 4, Update on legal
Item 4
description of 7940 55 Avenue North (project no. 911).
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Mr. Curtis Jacobsen, director of community development, relayed the need to
consolidate the three parcels at the Winnetka Learning Center site into one
large parcel of 737,811 square feet. He stated this action will preserve the
EDA’s ability to establish a tax increment financing (TIF) district on the site
and reimburse the EDA for the redevelopment costs.
Mr. Jacobsen explained in order to create the TIF District, 70% of the parcel
must be classified as “covered” (this test is met if 15% of the area of the parcel
is covered by buildings, parking, sidewalks, utilities, etc.). He stated by
combining the three parcels into one, there is 26% of the site covered.
Mr. Jacobsen stated Hennepin County has assigned a new property
identification number and the city attorney’s office as well as the county
assessor and county recorder have reviewed the change. He stated the
property will eventually be split into 61 parcels with the Centra Homes
development.
IMP. PROJECT 911 President Hemken introduced for discussion EDA Item 5, A resolution
Item 5
finding the existence of improvements and structurally substandard buildings
EDA Meeting
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on real property that may be included in a tax increment district, pursuant to
Minnesota Statutes Section 469.174, Subdivision 10(d); Project No. 911 – 7940
55 Avenue North.
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Mr. Curtis Jacobsen, director of community development, stated the building
condition is the second part of the criteria to establish a tax increment
financing district. He stated more than 50% of the structures have to be
considered substandard, and the test is met if the cost to bring the building up
to current code requirements is greater than 15% of the cost to construct the
facility today, and the facility suffers from functional obsolescence greater
than 15% of its value. He stated Roger Axel, the city’s building official,
completed a report on the building, and it has been determined the parcel was
occupied by a structurally substandard building. He stated the estimated
replacement cost is $7.2 million and the cost to correct code deficiencies is $2.2
million or 30% of replacement value.
President Hemken conveyed the city’s appreciation to the building official for
his ability to prepare the findings in-house which was a cost savings of $4,000.
RESOLUTION 2014-04 Commissioner Elder introduced the following resolution and moved its
Item 5 adoption “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); PROJECT NO. 911 – 7940 55
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AVENUE NORTH.” 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.
ADJOURNMENT Motion was made by Commissioner Lammle, seconded by Commissioner
Elder, to adjourn the meeting. All present voted in favor. Motion carried. The
New Hope EDA adjourned at 7:31 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
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