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