062314 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes June 23, 2014
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 8:49 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
Tim Fournier, Director of Police
Valerie Leone, City Clerk
Bob Paschke, Director of Public Works
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Steve Sondrall, City Attorney
Bernie Weber, Operations Manager
Stacy Woods, Assistant City Attorney
Also Present: Stacie Kvilvang, Ehlers
APPROVE MINUTES Motion was made by Commissioner Hoffe, seconded by Commissioner
Stauner, to approve the regular meeting minutes of May 27, 2014. Voting in
favor: Hemken, Hoffe, Lammle, Stauner; voting against: None; Absent: None;
Abstained: Elder. Motion carried.
IMP. PROJECT 893 President Hemken introduced for discussion EDA Item 4, Resolution
Item 4
approving the term sheet and authorizing the preparation of a purchase and
development agreement with Anderson-KM Builders, LLC, and Hy-Vee, Inc.
for the sale of real property (improvement project no. 893).
Ms. Stacie Kvilvang, Ehlers, recommended the EDA approve the term sheet
and authorize the preparation of a purchase and development agreement with
Anderson-KM Builders, LLC and Hy-Vee, Inc. for the sale of the properties
located at 4200 and 4300 Xylon Avenue North.
Ms. Kvilvang explained Council reviewed the preliminary term sheet at its
June 16 work session and expressed support. She stated the agreement will
replace the existing preliminary development agreement with Anderson
Companies. She stated the development will become a three-party purchase
and development agreement between the EDA, Anderson Companies, and
Hy-Vee.
EDA Meeting
Page 1June 23, 2014
Ms. Kvilvang stated Hy-Vee will purchase the property for $3,725,000 and
will pay all broker commissions. She stated the closing will occur on or before
September 30, 2014.
Regarding Lot 3, Ms. Kvilvang explained Hy-Vee has three years from the
date of closing to begin construction of a retail/office development acceptable
to the EDA; Hy-Vee can request a one-year extension if progress is made
towards development; and after four years, the EDA has the option to
repurchase lot 3 for $470,000. She pointed out this is a safeguard that
construction will occur.
Mr. Kvilvang reviewed other components of the term sheet including:
Construction of Phase 1A (80,000 to 90,000 s.f. grocery store) must begin
by June 1, 2015, and be complete by May 31, 2016
Phase 1B (3,000 s.f. convenience store with gas station) must begin by June
1, 2015, and be complete by May 31, 2016
Phase 2 (up to 12,000 s.f. retail/office space) must begin by October 1, 2017
and be complete by October 30, 2018
The city is responsible for all public utility connections to the site to
accommodate development of the property
The city is responsible for reconstruction of Xylon Avenue between 42
nd
Avenue and 45 Avenue including upgrades to underground utilities (to
th
be completed by September 30, 2015, to coordinate with Hy-Vee grand
opening).
The city will construct streetscape on the west side of Xylon Avenue.
Anderson Companies will construct the public plaza at the city’s cost and
in accordance with the public bidding requirements.
Hy-Vee will construct all roads, sidewalks, sewer, water, utility and traffic
improvements located with the redevelopment property.
Hy-Vee will pay for and construct all streetscape improvements located
within the rights-of-way at the east side of Xylon between 42 and the
nd
north end of the redevelopment property and the south side of the
redevelopment property along 42 Avenue.
nd
The city will be responsible for the maintenance and plowing of the public
streets and maintenance of the lighting.
Hy-Vee will be responsible for the maintenance and plowing of private
drives, sidewalks, and for maintenance of the grass and landscaping from
the curb line into their property along Xylon Avenue and 42 Avenue.
nd
Anderson Companies will pay 100% of the EDA’s costs for consultants in
connection with the creation of a TIF district.
The city will work with Hy-Vee on acceptable deed restrictions for use of
Lot 3.
Commissioners Lammle and Elder questioned the cost responsibility of road
access to Winnetka and access points on 42 Avenue. Ms. Kvilvang stated
nd
discussion has commenced with Hennepin County regarding 42 Avenue.
nd
She stated access onto 42 will be installed at the developer’s expense. Mr.
nd
Jeff Sargent, director of community development, noted the road connection
to Winnetka Avenue will not be shown on Hy-Vee’s site plan, but it will be
identified in a future phase and cost responsibility will be determined at that
point.
EDA Meeting
Page 2June 23, 2014
Commissioner Stauner commented he is not against the Hy-Vee project but is
concerned on assumptions and would like to see evidence. He noted the EDA
is taking a risk and there will be consequences (i.e. business competition). He
stated he will continue to weigh the pros and cons of the project.
RESOLUTION 2014-12 Commissioner Lammle introduced the following resolution and moved its
Item 4 adoption “RESOLUTION APPROVING THE TERM SHEET AND
AUTHORIZING THE PREPARATION OF A PURCHASE AND
DEVELOPMENT AGREEMENT WITH ANDERSON-KM BUILDERS, LLC,
AND HY-VEE, INC. FOR THE SALE OF REAL PROPERTY
(IMPROVEMENT PROJECT NO. 893).” The motion for the adoption of the
foregoing resolution was seconded by Commissioner Elder, 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 9:00 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 3June 23, 2014