062617 EDAEDA Meeting
Page 1 June 26, 2017
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes June 26, 2017
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:01 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
Valerie Leone, City Clerk
Chris Long, City Engineer
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
Mark Severson, Recreation Facilities Manager
Scott Slawson, Police Captain
Steve Sondrall, City Attorney
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
Also Present: Stacie Kvilvang, Ehlers
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Elder, seconded by Commissioner London,
to approve the minutes of May 22, 2017. All present voted in favor. Motion
carried.
GOOD SAMARITAN
TIF DISTRICT
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution requesting
that the City Council of the City of New Hope call for a public hearing on the
modification of redevelopment project no. 1 and the establishment of the Good
Samaritan Tax Increment Financing District (a housing district).
President Hemken disclosed that she serves on the advisory board of Good
Samaritan but has no financial interest.
Mr. Jeff Sargent, director of community development, reported Good Samaritan
Society’s interest in constructing a 31‐unit Assisted Living facility as an addition
to their existing campus. He stated Good Samaritan Society recently purchased
the property at both 2773 and 2765 Virginia Avenue (adjacent to their current
building) in anticipation of future development. He stated Community Asset
Development Group would construct and own the new building, and Good
Samaritan would conduct the operations and eventually own the building.
EDA Meeting
Page 2 June 26, 2017
Mr. Sargent stated Good Samaritan Society is interested in TIF assistance through
a pay‐as‐you‐go method. He stated Ehlers has reviewed the pro forma and has
concluded that the project is TIF eligible. Mr. Sargent stated staff has preliminarily
reviewed the proposed site plan and will be conducting a more in‐depth review.
He noted market research has been conducted and it has been determined that
there is a demand for these services in the area. Assisted living facilities are
required to pay taxes, which makes the project TIF eligible. He stated the City
Council reviewed this request at the June 19, 2017 work session, with a majority
of the Council members supporting the motion.
Mr. Sargent stated the developer would like to start construction in early
September which would require all financing to be in place beforehand. Mr.
Sargent reviewed the proposed TIF schedule. He recommended the EDA adopt
the resolution calling for a public hearing on August 14, 2017, to consider creation
of the TIF District. He stated Ehlers will prepare an analysis to allow the EDA to
make an informed decision.
Commissioner London noted that during the work session he had asked Ehlers
also consider a revenue bond backed by the credit worthiness of the city.
Mr. Sargent stated that could be done but the city of New Hope is considering
using the full $10 million in bank qualified bonds to help fund a new police
station/city hall facility. He stated the city of Butterfield has agreed to issue the
bonds for the proposed development and noted the issue is Item 8.3 on the City
Council Meeting agenda.
RESOLUTION 2017‐08
Item 4
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION REQUESTING THAT THE CITY COUNCIL OF THE CITY OF
NEW HOPE CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF
REDEVELOPMENT PROJECT NO. 1 AND THE ESTABLISHMENT OF THE
GOOD SAMARITAN TAX INCREMENT FINANCING DISTRICT (A
HOUSING DISTRICT)”. 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.
IMP. PROJECT 965
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution approving
reimbursement of Regal Homes, LLC for costs associated with removal of buried
foundation at 4417 Nevada Avenue North (improvement project no. 965).
Mr. Aaron Chirpich, community development specialist, explained the EDA sold
the lots of 4415 and 4417 Nevada Avenue North to Regal Homes in September
2016. He stated the lots were sold as suitable for building.
Mr. Chirpich reported that while completing excavation work for the basement of
the first home, the contractor uncovered buried footings from an unknown
structure as well as garbage debris and organic soils. He explained the
extraordinary work required by the contractor to build the home and garage, and
the contractor’s request for reimbursement of $13,455.25 for the extra costs. He
EDA Meeting
Page 3 June 26, 2017
presented an aerial photograph from 1956 that was recently located which
revealed an outline of the old foundation.
Mr. Chirpich noted Council reviewed this item at work sessions of October17,
2016, and June 19, 2017. He stated staff supports reimbursing Regal Homes
$13,455.25 for the unforeseen costs. He reported CDBG grant funds are available
to reimburse the EDA for all soil correction costs, and no payment will be made to
Regal Homes, LLC until documentation is received to verify that all
subcontractors have been paid for the soil correction work. He also reported the
contractor will sign a hold harmless agreement certifying all costs are final.
Commissioner London asked how laborious it was to obtain the aerial photograph
that illustrated the property and former footings.
Mr. Chirpich stated the information was made available through a database held
by the University of Minnesota. He stated it will be standard procedure for staff
to utilize this tool for future scattered site housing projects.
RESOLUTION 2017‐09
Item 5
Commissioner London introduced the following resolution and moved its
adoption “RESOLUTION APPROVING REIMBURSEMENT OF REGAL
HOMES, LLC FOR COSTS ASSOCIATED WITH REMOVAL OF BURIED
FOUNDATION AT 4417 NEVADA AVENUE NORTH (IMPROVEMENT
PROJECT NO. 965)”. 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 Hoffe,
to adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:17 p.m.
Respectfully submitted,
Valerie Leone, City Clerk