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EDA 02/24/03OFFICIAL CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North Monday, February 24, 2003 FILE COPY President W. Peter Enck - Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 2. 3. 4. Call to Order Roll Call Approval of Regular Meeting Minutes of February 10, 2003 Resolution Finding Need to Acquire Title and Possession of Property at 7600 49th Avenue North Prior to Commissioner's Award, Approving the Appraisal of Damages Resulting from the Taking and Ratifying and Authorizing All Steps Taken by Staff to Acquire the Property (Improvement Project No. 737) Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Regular Meeting February 10, 2003 City Hall CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 597 Item 4 New Hope EDA Page 1 President Enck called the meeting of the Economic Development Authority to order at 7:51 p.m. Present: W. Peter Enck, President Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner Absent: Sharon Cassen, Commissioner Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner Collier, to approve the Regular Meeting Minutes of January 27, 2003. Voting in favor: Enck, Collier, Gwin-Lenth, Sommer. Voting Against: None; Absent: Cassen; Abstained: None. Motion carried. President Enck introduced for discussion Item 4, Discussion Regarding Preliminary Development Proposals for City-Owned Property at 9200 49t~ Avenue (Improvement Project No. 597). Mr. Kirk McDonald, Director of Community Development, stated within the past several months, staff has been contacted by and met with three different parties who are interested in potentially developing the city-owned property at 9200 49* Avenue North. All three parties have submitted letters of interest for the development of the site. Staff requests to discuss these preliminary proposals with the EDA and receive direction from the EDA as to how to proceed. It is still staff's desire to sell this property, coordinate on a new development so that additional tax revenues are generated, and achieve the city's storm water goals on the site. Mr. McDonald reviewed that this property was recently considered for the relocation of Ahrens Tracking, but the project did not proceed. Staff requests that the EDA determine which of the proposals it is most interested in and staff would then work with the parties to develop more detailed plans pertaining to their proposals. Mr. McDonald stated the first of the three proposals he wishes to review with the EDA was submitted by Quest Real Estate, Inc. in conjunction with the owners of the Plymouth Heights Pet Hospital. He stated the Plymouth Heights Pet Hospital is seeking to expand their facility. Their present location is 3401 North Highway 169 in Plymouth. The proposed structure would consist of a single story, "state of the art" pet hospital and boarding facility totaling approximately 7,000 square feet in size. Next, Mr. McDonald'reported on proposal number two that was submitted by Driveway Design. Driveway Design is in the process of selling their existing property in Plymouth. He indicated that staff had shared the previously approved plans for Ahrens Tracking with Driveway Design, and they have stated the plans are very close to their needs. February 10, 2003 ADJOURNMENT The third proposal was from Amcon Construction Company. Amcon has an interest in building either an office building, or a series of office condominiums compatible with the adjacent neighborhood. Mr. McDonald stated staff feels that these are all good proposals and all of the parties seem agreeable to coordinate with the City on soil correction issues. Proposals one and three would probably be more compatible with the residential neighborhood to the south and with the adjacent office-type use properties to the west and east, however, the Council has previously approved plans for a use similar to proposal two and it appears they would utilize very similar screening techniques and construct a quality building. The EDA noted the city is fortunate to have three good companies considering the site. The EDA expressed support for the office-type uses for this property (proposals one and three). It was noted that a final determination as to which proposal may be selected would be based on the best price offered for the property. Other factors to take into consideration will include taxes generated from the new development, traffic issues, and the creation of jobs. President Enck commented that the only reason the city previously considered a tracking company at the site was to facilitate relocation of an existing New Hope business. He emphasized the need to develop the property with a business that is compatible with the adjacent office-type use properties and the residential neighborhood. Commissioner Sommer made the following suggestions: 1) consider the pet hospital for the 9200 49~ Avenue site, 2) work with Driveway Design to locate an alternate site, and 3) ask Amcon to explore the Quebec/42na Avenue property. Commissioner Gwin-Lenth stated she believes the pet hospital would be the most compatible use. She recommended continuing discussions with all three of the interested parties. Commissioner Collier expressed support for proposals one and three. He questioned the amount of traffic generated by each business. He asked staff to explore the property at 8501 54th Avenue as a possible site for Driveway Design. Motion was made by Commissioner Collier, seconded by Commissioner Gwin- Lenth, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:07 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 February 10, 2003 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ¢-'~\ 2-24-03 EDA Item No. By: Kirk McDonald B 4 RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF PROPERTY AT 7600 49TM AVENUE NORTH PRIOR TO COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES RESULTING FROM THE TAKING AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTY (IMPROVEMENT PROJECT NO. 737) REQUESTED ACTION City staff recommends that the EDA approve the attached resolution prepared by the City Attorney. POLICY/PAST PRACTICE The EDA has approved similar resolutions in the past, when necessary, for the acquisition of property for redevelopment and/or business expansion purposes. BACKGROUND The City Attorney has prepared for consideration at the February 24 EDA meeting the enclosed Resolution Finding Need to Acquire Title and Possession of Property at 7600 49~h Avenue North Prior to Commissioners' ;Award Approving the Appraisal of Damages Resulting from the Taking and Ratifying and Authorizing All Steps Taken by Staff to Acquire the Property. Per the correspondence from the City Attorney, the City has received the preliminary appraisal from Shenahon Company to acquire 7600 49th Avenue North. They have appraised the property at $335,000. The appraisal amount is somewhat higher than anticipated due to the fact that Ahrens property has been provided in the past with a conditional use permit to allow outdoor storage in excess of 20% of their building size to accommodate their trucking business. This kind of specialized industrial use commands a greater value in the market place according to the appraiser, and as a result, the appraiser has valued the property at $335,000. A resolution is needed approving this appraisal to ensure the EDA will be able to acquire fee title to the property on or before May 31, 2003. The resolution states that: · The EDA has authorized commencement of an eminent domain proceeding to acquire certain property at 7600 49th Avenue North located in the City of New Hope. MOTION BY ~_//_/~/]//~ SECOND BY · o: ). I:rfa\ Request for Action Page 2 2-24-03 · The EDA adopted EDA Resolution 2002-10 at its November 12, 2002, meeting and that said Resolution authorized that 7600 49th Avenue North be acquired by the "Quick-Take" procedure pursuant to Minn. Stat. {}117.042. · The necessity to acquire 7600 49th Avenue North is set out in EDA Resolution 2002-10 and the findings made by EDA Resolution 2002-10 are incorporated into the herein Resolution by this reference as if said findings were fully set out herein. · The EDA bases its finding to acquire the subject property by the "Quick-Take" prOcedure on the fact that the construction time schedule for the 100,000 square foot building expansion by the Navarre Corporation requires a start date of June 2003 to ensure completion of the expansion during the 2003 construction season. Therefore, it is in the best interest of the City of New Hope and the EDA that the proposed building expansion project be completed during the 2003 construction season and to accomplish this objective, the construction work necessary to complete the project must commence during June 2003. · An appraisal of damages resulting from the proposed taking has been prepared for the property by Shenehon Company, an independent certified fee appraiser, and the damages resulting from the taking is $335,000. · Said determination of damages in the amount of $335,000 is hereby adopted by the EDA as its approved appraisal of value as required by Minn. Stat. {}117.042. The resolution further states: That the acquisition of title and possession to 7600 49th Avenue North by the "Quick-Take" procedure permitted under Minn. Stat. {}117.042 is necessary and in the best interest of the City of New Hope and the EDA. · That the $335,000 appraisal of damages for 7600 49th Avenue North is hereby approved and declared by the EDA as its official determination of damages resulting from the taking. · That EDA staff is hereby authorized to proceed forthwith to acquire the subject property by "Quick-Take" per Minn. Stat. {}117.042 and to take all reasonable steps necessary and required to accomplish this objective. · That all actions taken by staff to acquire the property by "Quick-Take" prior to the adoption of this Resolution are hereby ratified and approved as authorized by the EDA. The City Attorney has directed that the appraisal document not be included as an attachment to this request because the document is intended to be used in court and the document would become public if attached to this request. He has advised that if the EDA desires to review the appraisal, a special closed meeting could be conducted, due to the fact that this matter is in litigation. Staff recommends approval of the resolution. ATTACHMENTS · Resolution · 2/18 City Attorney Correspondence · EDA Resolution 2002-10 EDA RESOLUTION NO. 03 - RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF PROPERTY AT 7600 - 49TM AVENUE NORTH PRIOR TO COMMISSIONER'S AWARD, APPROVING THE APPRAISAL OF DAMAGES RESULTING FROM THE TAKING AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTY BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope, Minnesota (hereafter "EDA") as follows: WHEREAS, the EDA has authorized commencement of an eminent domain proceeding to acquire certain property at 7600 - 49~h Avenue North located in the City of New Hope; and WHEREAS, the EDA adopted EDA Resolution 2002-10 at its November 12, 2002 meeting and that said Resolution authorized that 7600 - 49t~ Avenue North be acquired by the "Quick-Take" procedure pursuant to Minn. Stat. §117.042; and WHEREAS, the necessity to acquire 7600 - 49a~ Avenue North is set out in EDA Resolution 2002-10 and the findings made by EDA Resolution 2002-10 are incorporated into the herein Resolution by this reference as if said findings were fully set out herein; and WHEREAS, the EDA bases its finding to acquire the subject property by the "Quick- Take" procedure on the fact that the construction time schedule for the 100,000 square foot building expansion by the Navarre Corporation requires a start date of June, 2003 to ensure completion of the expansion during the 2003 construction season. Therefore, it is in the best interest of the City of New Hope and the EDA that the proposed building expansion project be completed during the 2003 construction season and to accomplish this objective, the construction work necessary to complete the project must commence during June, 2003; and WHEREAS, an appraisal of damages resulting from the proposed taking has been prepared for the property by Shenehon Company, an independent certified fee appraiser, and the damages resulting from the taking is $335,000.00; and WHEREAS, said determination of damages in the amount of $335,000.00 is hereby adopted by the EDA as its approved appraisal of value as required by Minn. Stat. §117.042. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: That the acquisition of title and possession to 7600 - 49~ Avenue North by the "Quick-Take" procedure permitted under Minn. Stat. §117.042 is necessary and in the best interest of the City of New Hope and the EDA. o That the $335,000.00 appraisal of damages for 7600 - 49* Avenue North is hereby approved and declared by the EDA as its official determination of damages resulting from the taking. That EDA staff are hereby authorized to proceed forthwith to acquire the subject property by "Quick-Take" per Minn. Stat. §117.042 and to take all reasonable steps necessary and required to accomplish this objective. e That all actions taken by staff to acquire the property by "Quick-Take" prior to the adoption of this Resolution are hereby ratified and approved as authorized by the EDA. Adopted by the Economic Development Authority in and for the City of New Hope this 24* day of February, 2003. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:~Altomey'~Cnh ResolutiomXC. NH99.53073-002.EDA Reso Appmv Acquisilion.do~ 2 DOUGLAS J. DEBNERa GORDON L. JENSEN~ GLEN A. NORTON STEVEN A. SONDRALL WILLIAM C. STRAIT2 STACY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD SReal Property Law Special~St Certified By The Minnesota State Bar Association :Qualified ADP. Neutral ~Admitted in Iowa JENSEN & SONDRALL, P.A. Attorneys ~It Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail iaw~jensen-sondrall.com February 18, 2003 VIA FACSIMILE TO: (763) 531-5136 AND BY REGULAR U.S. MAIL Kirk McDonald Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Proposed.EDA Resolution Approving $335,000.00 Appraisal for Acquisition of Ahrens Trucking Property Our File No.: 99.53073 Dear Kirk: Please fred enclosed for consideration at the February 24, 2003 EDA meeting a proposed Resolution Finding Need to Acquire Title and Possession of Property at 7600 - 49o° Avenue North Prior to Commissioners' Award Approving the Appraisal of Damages Resulting from the Taking and Ratifying and Authorizing All Steps Taken by Staff to Acquire the Property. As you know, we have received our preliminary appraisal from Shenahon Company to acquire 7600 - 49t~ Avenue North. They have appraised the property at $335,000.00. The appraisal amount is somewhat higher than we anticipated due to the fact the Ahrens property has been provided with a conditional use permit to allow outdoor storage in excess of 20% of their building size to accommodate their trucking business. This kind of specialized industrial use commands a greater value in the market place according to our appraiser, and as a result, he has valued the property at $335,000.00. We now need a resolution approving this appraisal to ensure we will be able to acquire fee title to the property on or before May 31, 2003. February 18, 2003 Page 2 Please contact me if you have any questions or comments regarding the enclosed Resolution or the Shenehon Company appraisal. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas@jensen-sondrall.com After Hours Extension//147 Enclosure CC.' Dan Donahue (w/enc.) Valerie Leone (w/enc.) P:~AuomeykSAS\Leuers\CNH99.53073-010-Kirk Ltr.doc NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF HENNEPIN STATE OF MINNESOTA ED,~ RESOLUTION NO. 2002-10 A RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY WITHIN THE CITY OF NEW HOPE FOR THE PURPOSE OF REDEVELOPMENT. (IMPROVEMENT PROJECT NO. 728) WHEREAS, the New Hope Economic Development Authority (the "Authority") Js a public_b°dy corporate and politic authorized under Minn. Stat. ,~469.090 et seq.; and WHEREAS, the Authority is authorized to exercise the right of Eminent Domain under the aforementioned statute and under Minn. Stat. Chapter 117; and WHEREAS, in furtherance of the Authodty's objectives, them has been established pursuant to Authority Resolution No. 02-05 a Restated Redevelopment Plan (the "Project Plan") for Redevelopment Project No. 1 (the "Project Area") in the City of New Hope, Minnesota to encourage and provide, maximum opportunity for private development and redevelopment of certain property located within the City of New Hope which is not now utilized in its highest and best use; and WHEREAS the major objectives in establishing the Project Area and adopting the Project Plan are to: 1. Promote and secure the prompt development or redevelopment of certain property in the Project Area, which property is not now in productive use or in its highest and best use, in a manner consistent with the City's comprehensive plan and with a minimum adverse impact on the environment and thereby promote and secure the development of other land in the City. 2. Promote and secure additional employment opportunities within the Project Area and the City for residents of the City and surrounding area, thereby improving living standards, reducing unemployment and the loss of skilled and unskilled labor and other human resources in the City. 3. Secure the increased valuation of property subject to taxation by the City, County, School District and other taxing jurisdictions in order to better enable such entities to pay for governmental services and programs required to be provided by them. 4. Provide for the financing and construction of public improvements in and adjacent to the Project Area necessary for the orderly and beneficial development or redevelopment of the Project Area and adjacent areas of the City. 5. Promote the concentration of new desirable residential, commercial, office and other appropriate development or redevelopment in the Project Area so as to maintain the area in a manner compatible with its accessibility and prominence in the city. 6. Encourage local business expansion, improvement, development or redevelopment whenever possible. 7. Create a desirable and unique character within the Project Area through quality land use alternatives and design quality in new and remodeled buildings. 8. Encourage and provide maximum opportunity for private development or redevelopment of existing areas and structures which are compatible with the Plan. 9. Create viable environments which would upgrade and maintain housing stock, maintain housing health and safety quality standards, and maintain and strengthen individual neighborhoods. 10. Stimulate private activity and investment to stabilize and balance the City's housing supply. 11. Eliminate code violations and nuisance conditions that adversely affect neighborhoods. 12. Revitalize property to create a safe, attractive, comfortable, convenient and efficient area for residential use. 13. Recreate and reinforce a sense of residential place and security which creates neighborhood cohesiveness through City investment in neighborhood infrastructure and public improvements, including landscaping, park improvements, local street modifications to reduce traffic impacts, street repaying, curb and gutter replacement, and streetlight updating. 14. Encourage infill development and redevelopment that is compatible in use and scale with surrounding neighborhoods. 15. Rehabilitate the existing housing stock and preserve existing residential neighborhoods wherever possible. 16. Demolish and reconstruct, where necessary, aging residential buildings to preserve neighborhoods. 17. Removal of substandard structures. WHEREAS, it appears that in order to accomplish the objectives and purposes set out in the Project Plan, including promoting and securing additional employment opportunities within the Project Area and the City for residents of the City and the surrounding area, it will be necessary that properties described in Exhibit A attached hereto and incorporated herein by reference be acquired (the "Properties"); and WHEREAS, the Abthority has been advised that said property will not be made available for redevelopment in the manner that would allow the Authority to undertake the Project Plan and meet the objectives and purposes of that Plan for the Project Area and for the City of New Hope unless the Properties are acquired by use of Eminent Domain; and WHEREAS, the Authority believes that the development and redevelopment of the Project Area and the fulfillment of the Project Plan are in the vital and best interests of the Authority and the health, safety, morals and welfare of the residents of the City of New Hope, and in accord with the public purposes and provisions of applicable federal, state and local laws under which this development and redevelopment are being undertaken and assisted; NOW, THEREFORE, BE IT RESOLVED, that in order to undertake the Project Plan and provide for the development and redevelopment of the Properties in a manner that will meet the objectives and purposes of the Project Plan and the Project Area, that the Authority proceed to acquire the Properties and all interests therein under its power of Eminent Domain; and that the attorneys for the Authority be instructed and directed to file the necessary petition or petitions thereto and to prosecute such action or actions to successful conclusion, or until such are abandoned, dismissed or terminated by the Authority or the court; and that said petitions include any necessary actions to acquire said Property under the "Quick Take" provisions of Minnesota Law, set forth in Minn. Stat. §469.101 and Minn. Stat. §117.042; and that the attorneys for the Authority, the President of the Authority and the Executive Director of the Authority do all things necessary and convenient to be done in the commencement, prosecution and successful termination of such Eminent Domain proceedings. BE IT FURTHER RESOLVED, that it is hereby found and declared that the acquisition of the Properties described on Exhibit A hereto and all interests therein by the Authority under its power of Eminent Domain is necessary to develop and redevelop their underdeveloped areas under the Project Plan. Adopted by the New Hope Economic Development Authority this 12th November , 2002. day of ATTEST: . Daniel J.~l~0n~hue , Executive Director EXHIBIT A Legal Description of the Properties Land located in Hennepin County, Minnesota and described as follows: Parcel A The East 145 feet of the South ¼ of the Southwest Quarter of the Northwest Quarter of Section 8, Township 118, Range 21, subject to a sewer easement over the East 45 feet of said premises, as contained in Book 814 of Misc. Records 519. Parcel B Outlot A, FIVE THOUSAND WINNETKA 2ND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota. That part of Outlot A, FIVE THOUSAND WINNETKA 2ND ADDITION, embraced within the Southwest Quarter of the Northwest Quarter of Section 8, Township 118, Range 21 is Registered Property as set out on Certificate of Title No. 811091. Parcel C The South 300 feet of the West 160 feet of the SE ¼ of NWl/4 Section 8, Township 118N, Range 21W except street according to the United States Government Survey thereof and situate in Hennepin County, Minnesota. G:'~WPDATA~ HOPEV)g'd~OC~NDEIVINATION RESOLUTION.DOC