021317 EDAEDA Meeting
Page 1 February 13, 2017
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes February 13, 2017
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority
to order at 8:36 p.m.
ROLL CALL Present:
Absent:
Kathi Hemken, President
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Jonathan London, Commissioner
John Elder, Commissioner
Staff Present:
Kirk McDonald, City Manager
Aaron Chirpich, Community Development Specialist
Tim Fournier, Director of Police
Valerie Leone, City Clerk
Chris Long, City Engineer
Jeff Sargent, Director of Community Development
Bernie Weber, Acting Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Hoffe, seconded by Commissioner London,
to approve the minutes of January 23, 2017. All present voted in favor. Motion
carried.
IMP. PROJECT 997
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
Purchase Agreement for the acquisition of 3984 Zealand Avenue North.
Mr. Aaron Chirpich, community development specialist, explained that the
market for distressed properties has become more competitive and the prices for
acquisition of homes has increased. He commented that homes that are “flipped”
by investors may have interior improvements but lack in exterior improvements
that are more costly such as roof, siding and windows.
He requested authority to enter into a purchase agreement for the acquisition of
3984 Zealand Avenue North, for a purchase price of $165,000 plus any associated
fees. He noted the closing would take place within 30 days.
Mr. Chirpich reported the home is a vacant and foreclosed property that was
part of an estate. The home was constructed in 1964 and is in need of general
maintenance. He stated improvements are estimated at $65,000 and would
include a new roof, siding, windows, overhead garage door, new kitchen, re‐
conditioning of existing hardwood floors, remodel the master and main bath,
new interior doors and trim, interior painting and new carpet in the lower level.
Staff recommends purchasing, renovating and reselling the property. He
EDA Meeting
Page 2 February 13, 2017
explained EDA funds will be used for the acquisition and remodeling costs. He
pointed out there will be no income restrictions as CDBG funds are not proposed
for the project.
City Manager McDonald inquired regarding the owner‐occupant requirement.
Assistant City Attorney Stacy Woods indicated the city can require the property
to be owner‐occupied by its first owner.
Commissioner London commented that properties that have been “flipped” and
put on the market for less than $300,000 are in high demand. He noted the vast
majority of rehab work in the private sector is not high quality. He supported
the city’s endeavor for rehabilitation of distressed properties.
Commissioner Lammle inquired of the process undertaken for remodeling
work.
Mr. Chirpich explained the city would solicit bids from multiple contractors for
each rehab project.
RESOLUTION 2017‐02
Item 4
Commissioner Lammle introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR
THE ACQUISITION OF 3984 ZEALAND 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, Hoffe, Lammle; and the following voted against the same: None;
Abstained: London; Absent: Elder; 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 Hoffe,
to adjourn the meeting. All present voted in favor. Motion carried. The New
Hope EDA adjourned at 8:50 p.m.
Respectfully submitted,
Valerie Leone, City Clerk