022717 EDAEDA Meeting
Page 1 February 27, 2017
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes February 27, 2017
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:06 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
Jeff Alger, Community Development Assistant
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Chris Long, City Engineer
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Hoffe, seconded by Commissioner Elder, to
approve the minutes of February 13, 2017. Voting in favor: Hemken, Hoffe,
Lammle, London; and the following voted against the same: None; Abstained:
Elder; Absent: None. Motion carried.
PROJECT 964
Item 4
President Hemken introduced for discussion EDA Item 4, Motion to approve an
amendment to the Alatus Development Agreement in relation to terms concerning
the financing of a Variable Refrigerant Flow system for the building (project no.
964).
Mr. Jeff Sargent, director of community development, explained that at the
February 21 work session, staff advised Council of the interest by Alatus, LLC to
utilize a Variable Refrigerant Flow (VRF) system instead of the traditional
MagicPak HVAC system for the apartment building proposed for 8400 Bass Lake
Road. He stated the VRF system is 50% more efficient than the standard
“MagicPak” systems typically used in multi‐family residential buildings, and
would allow the new project to achieve a zero carbon footprint, qualifying the
building to become LEED certified. Mr. Sargent stated Alatus has asked whether
the city would be amenable to covering half of the additional cost (up to $350,000).
He stated at the work session President Hemken inquired whether Alatus would
consider a loan rather than extending the length of the TIF district. He indicated
Alatus is receptive to a loan, which would require an amendment to the Purchase
and Development Agreement. He stated the terms of the loan have not been
defined.
EDA Meeting
Page 2 February 27, 2017
Commissioner Lammle noted that historically the EDA’s loans provided a slightly
lower interest rate than the rate offered through a bank.
Ms. Stacie Kvilvang, Ehlers, commented that the EDA has offered below market
rate loans in the past.
Mr. Bob Lux, president of Alatus, LLC, explained his intent to construct the best
apartment complex in the western suburbs. He noted utilizing a VRF system is
forward thinking and provides many advantages. He spoke of the development
challenges such as poor soils and expensive pilings, but noted the city is investing
in a project that will have long‐term benefits.
Commissioner Lammle noted the VRF system will replace 182 MagicPak units
with one centralized unit. He commented regarding the condensation of
individual units that eventually causes rust and discoloration of the building’s
exterior. He spoke in favor of the loan and stated the city will gain the reputation
of having a LEED‐certified building in the community.
Commissioner Hoffe also supported the loan concept.
Commissioner London lauded Alatus’ efforts to achieve a green building but
expressed concern regarding supporting a loan without knowing the details. He
commented the city will not reap any taxes during the 23‐year term of the
increment financing district.
Commissioner Lammle pointed out the EDA is being asked whether it supports
the concept of a loan. He stated the terms will be brought back to the EDA at a
later date. He also pointed out the luxury apartment development will result in
the city gaining 182 households with high income levels.
President Hemken thanked Mr. Lux for attending the meeting.
MOTION
Item 4
Motion was made by Council Member Lammle, seconded by Council Member
Elder, to approve an amendment to the Alatus development agreement to assist
with financing of a variable refrigerant flow system for the building proposed
for 8400 Bass Lake Road (project no. 964) subject to terms and conditions of the
loan being presented and approved at a future meeting. Voting in favor:
Hemken, Elder, Hoffe, Lammle; and the following voted against the same:
London; Abstained: None; Absent: None. Motion carried.
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 8:25 p.m.
Respectfully submitted,
Valerie Leone, City Clerk