Loading...
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