032816 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEWHOPE, MINNESOTA55428
EDA Minutes March 28, 2016
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 8:48 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Jonathan London, Commissioner
Staff Present: Kirk McDonald, City Manager
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Chris Long, City Engineer
Bob Paschke, Director of Public Works
Jeff Sargent, Director of Community Development
Bernie Weber, Operations Manager
Steve Sondrall, City Attorney
Stacy Woods, Assistant City Attorney
APPROVAL OF Motion was made by Commissioner Lammle, seconded by
MINUTES CommissionerLondon, to approve the minutes of February 8, 2016. Voting in
Item 3
favor: Hemken, Hoffe, Lammle, London; Voting against: None; Absent: None;
Abstained: Elder.Motion carried.
IMP. PROJECT 973 President Hemken introduced for discussion EDA Item 4, Resolution
Item 4
authorizing the sale of land to Alatus Yukon, LLC (improvement project no.
964).
Mr. Jeff Sargent, director of community development, explained on
September 28, 2015, the Economic Development Authority (EDA) entered into
a preliminary development agreement with Alatus, LLC, ensuring the
developer exclusive negotiation with the city for the possible purchase of the
property. The City Council reviewed the proposed term sheet for this
development at the February 16, 2016 work session meeting. The term sheet
outlined that Alatus would acquire the parcels from the EDA for $1.4 million,
based on a market-rate price for land and a discount of nearly $400,000 to
accommodate soil corrections on the site. Mr. Sargent indicated the final term
sheet is not yet complete.
Mr. Sargent recommended the EDA adopt a resolution to authorize the sale of
the parcels to Alatus. He noted the sale is subject to the approval and
execution of a purchase and development agreement between the EDA and
EDA Meeting
Page 1March 28, 2016
Alatus, which will take place at a future date. Director Sargent emphasized
that authorizing the sale of the parcels to Alatus in no way obligates the EDA
to sell the land to Alatus if the purchase and development agreement is not
executed. However, authorization of the sale of the land is required before the
purchase and development agreement can be finalized. He stated appropriate
notice of the public hearing was provided.
President Hemken thanked staff for ensuring each component is in order as
the project progresses.
Commissioner London asked that financial information be presented when
the purchase and development agreement is presented. Director Sargent
stated a representative from Ehlers will be in attendance and financial data
will be presented.
President Hemken opened the floor for comments. There was no one present
desirous of addressing the EDA for the public hearing.
CLOSE HEARING Motion was made by Commissioner London, seconded by Commissioner
Item 4 Elder, to close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2016-06 Commissioner Elder introduced the following resolution and moved its
Item 4 adoption “RESOLUTION AUTHORIZING THE SALE OF LAND TO
ALATUS YUKON, LLC (IMPROVEMENT PROJECT NO. 964)”. 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, London; 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 London, seconded by Commissioner
Lammle, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:55 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
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