051004 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes May 10, 2004
Regular Meeting City Hall
CALL TO ORDER
President Collier called the meeting of the Economic Development Authority to
order at 7:39 p.m.
ROLL CALL
Present: Don Collier, President
Doug Andersen, Commissioner
Sharon Cassen, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
APPROVE MINUTES
Motion was made by Commissioner Andersen, seconded by Commissioner
to approve the Regular Meeting Minutes of April 26, 2004.
Sommer, All present
voted in favor. Motion carried.
IMP. PROJECT 724 President Collier introduced for discussion Item 4, Resolution modifying the
Item 4 restated redevelopment plan for redevelopment plan no. 1 and the tax increment
financing plans for tax increment financing districts nos. 80-2, 81-1, 82-1, 85-1, 85-
2, 86-1, 02-1, 03-1 (special law) and 04-1 (special law) (improvement project no.
724).
Mr. Steve Sondrall, city attorney, clarified that the EDA will make a
recommendation to the city council regarding the amendment to the TIF District.
Then the EDA should suspend its meeting and return to the public hearing (Item
7.1) being conducted by the city council.
Mr. Kirk McDonald, director of community development, stated the resolution has
been prepared by Krass Monroe, the city’s redevelopment financial consultant.
Approval of the resolution will modify the East Winnetka Tax Increment Financing
District to include 5519 Sumter Avenue North.
He reported that proper notifications of the public hearing were mailed to the
appropriate jurisdictions including Hennepin County and School District 281. He
stated the Hennepin County Board of Commissioners submitted a memorandum
dated April 30, 2004, in support of the amendment and requested that their response
be entered into the public hearing record.
The EDA expressed support of the amendment to the TIF District.
EDA RESOLUTION
Commissioner Sommer introduced the following resolution and moved its adoption
04-17 “RESOLUTIONMODIFYING THE RESTATED REDEVELOPMENT
Item 4 PLAN FOR REDEVELOPMENT PLAN NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING
DISTRICTS NOS. 80-2, 81-1, 82-1, 85-1, 85-2, 86-1, 02-1, 03-1 (SPECIAL
LAW) AND 04-1 (SPECIAL LAW) (IMPROVEMENT PROJECT NO. 724).”
The motion for the adoption of the foregoing resolution was seconded by
Commissioner Cassen, and upon vote being taken thereon, the following voted in
favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer, 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
EDA Meeting May 10, 2004
Page 1
attested to by the executive director.
The EDA meeting was suspended at 7:45 p.m. to conduct the public hearing (Item
7.1). The EDA meeting was reconvened at 10:14 p.m.
IMP PROJECT 723 President Collier introduced for discussion Item 5, Discussion regarding 7615 Bass
Item 5 Lake Road (New Hope Alano) gap request and motion directing staff to proceed
with preliminary loan terms (improvement project no. 723).
Mr. Kirk McDonald, director of community development, reported that Alano has
come to a verbal agreement with AC Carlson to purchase the building located at
7550 Bass Lake Road, but additional financing is required for acquisition and
remodeling. Staff is seeking authorization to review the proposal in greater detail to
determine if the city’s business subsidy loan program is appropriate for this
application. He stated the financing request would be in the form of a low interest
loan. The loan agreement would be prepared for consideration at a future EDA
meeting.
Mr. McDonald reported that Alano has visited the site and is very interested in the
building due to its close proximity to Alano’s present site. He stated the parking
requirements may have to be increased from 43 spaces to 53 spaces.
Mr. Steve Sondrall, city attorney, pointed out the reason behind the request is due to
the fact that the city is acquiring the Alano site for the Winnetka Green development
project.
Mr. Fred Boyes, New Hope Alano Group, reported that the 7550 Bass Lake Road
property is ideal. He stated they have a verbal agreement with AC Carlson to
purchase the property for substantially less than its value. Mr. Boyes and the EDA
expressed gratitude to AC Carlson for being a good neighbor.
MOTION/
Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
Item 5
to direct staff to proceed with preparation of a low-interest loan for
Andersen,
the New Hope Alano Group.
All present voted in favor. Motion carried.
IMP PROJECT 749 President Collier introduced for discussion Item 6, Resolution authorizing approval
Item 6 of a term sheet between the New Hope Economic Development Authority and
Project for Pride in Living, Inc. for the redevelopment of 5501 Boone Avenue North
(improvement project no. 749).
Mr. Kirk McDonald, director of community development, clarified that a majority
vote rather than a 4/5’s vote will be needed on the future rezoning request for the
5500 Boone property.
President Collier inquired of the length of time that the 5501 Boone property has
been off the tax rolls. Mr. Donahue, city manager, reported that it has been at least
ten years.
Commissioner Sommer indicated he does not believe the housing proposal is right
for New Hope and that it is not a good investment for the city. He referred to past
housing studies that reveal there is not a need for more low income, affordable, or
rental housing. He stated his intent to vote against the project.
President Collier and Commissioners Andersen, Cassen, and Gwin-Lenth,
expressed support for the project. Reasons cited included redevelopment of a tax-
exempt property requiring soil correction, replacement of rental housing that may be
demolished, affordable units for empty nesters, wide range of housing choices, a
profit of 2.1 million dollars over 25 years, and PPL’s favorable track record with the
Bass Lake Road project.
EDA Meeting May 10, 2004
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EDA RESOLUTION Commissioner Gwin-Lenth introduced the following resolution and moved its
“RESOLUTIONAUTHORIZING APPROVAL OF A TERM SHEET
04-18 adoption
Item 6 BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
AND PROJECT FOR PRIDE IN LIVING, INC. FOR THE
REDEVELOPMENT OF 5501 BOONE AVENUE NORTH (IMPROVEMENT
PROJECT NO. 749).”
The motion for the adoption of the foregoing resolution
was seconded by Commissioner Cassen, and upon vote being taken thereon, the
following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth; and the
following voted against the same: Sommer; 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.
IMP PROJECT 665 President Collier introduced for discussion Item 7, Resolution approving exclusive
Item 7 representation agreement (retail site development services/sale of Electronic
Industries site property (improvement project no. 665).
Mr. Ken Doresky, community development specialist, reported that in January the
city was notified by the Culver’s Restaurant developer that that approval of the New
Hope location was rescinded due to a franchisee complaint concerning proximity to
their restaurant in Brooklyn Center. The city was informed that the corporate
franchise proximity rules were changed based upon this complaint. Throughout the
late winter and spring, staff continued to work with the developer to exhaust all
options with Culver’s corporate office and an additional restaurant possibility for
the site. The developer has exhausted all their resources to locate a restaurant on the
site and is requesting that the purchase agreement be canceled and their $1,000
escrow deposit be returned. The city attorney will prepare a cancellation agreement.
The office condominium developer is still on board and is willing to cooperate with
the city until a use for the vacant portion of the site is secured.
He stated a marketing agreement was submitted for consideration from Dexter
Marston, Retail Site Development Services, the same broker that previously
represented Culver’s Restaurant and is currently still representing the office
condominium developer. The agreement was revised by the city attorney. It is
essentially the same arrangement as the former one (the city will net $380,000, less
estimated closing costs and recording fees of $1,000 - $2,000 and provide the
broker with at least $20,000). Culver’s would have paid the broker $20,000 under
the original arrangement. He noted if the property is sold for more than the listed
price of $460,000, the city will make a higher profit.
Due to the number of redevelopment activities managed by the community
development department, staff recommends that marketing of the property be
undertaken by a professional broker. With this agreement, the city will have the
right to accept and reject potential buyers in its sole discretion. The broker is aware
of the city’s desire to obtain a quality restaurant at the site.
Mr. Dexter Marsden, Retail Site Development Services, was recognized. He
reviewed his letter dated May 10, 2004, and explained the definitions of various
restaurant classifications (fast food, quick serve, quick casual, casual dining,
freestanding restaurant, and in-line restaurant). He stated the property is best suited
for a quick casual dining concept and will be marketed for such.
The EDA expressed support for the marketing direction presented by Mr. Marsden.
EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption
04-19 “RESOLUTION APPROVING EXCLUSIVE REPRESENTATION
Item 7 AGREEMENT (RETAIL SITE DEVELOPMENT SERVICES/SALE OF
ELECTRONIC INDUSTRIES SITE PROPERTY (IMPROVEMENT
PROJECT NO. 665).”
The motion for the adoption of the foregoing resolution
was seconded by Commissioner Andersen, and upon vote being taken thereon, the
EDA Meeting May 10, 2004
Page 3
following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer,
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.
IMP PROJECT 714 President Collier introduced for discussion Item 8, Resolution approving purchase
Item 8 agreement and relocation benefits 5434 Winnetka Avenue North (improvement
project no. 714).
Mr. Ken Doresky, community development specialist, stated the property located at
5434 Winnetka Avenue North is the final property to be acquired for phase I of the
east Winnetka redevelopment.
EDA RESOLUTION Commissioner Sommer introduced the following resolution and moved its adoption
04-20 “RESOLUTION APPROVING PURCHASE AGREEMENT AND
Item 8 RELOCATION BENEFITS 5434 WINNETKA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 714).”
The motion for the adoption of the
foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon vote
being taken thereon, the following voted in favor thereof: Collier, Andersen,
Cassen, Gwin-Lenth, Sommer, 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 Gwin-Lenth, seconded by Commissioner
to adjourn the meeting
Andersen, . All present voted in favor. Motion carried. The
New Hope EDA adjourned at 11:05 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting May 10, 2004
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