081417 EDAEDA Meeting
Page 1 August 14, 2017
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes August 14, 2017
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:56 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
Jerry Beck, Communications Coordinator
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
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 Hoffe, seconded by Commissioner London,
to approve the minutes of July 24, 2017. Voted in favor thereof: Hemken, Elder,
Hoffe, London; and the following voted against the same: None; Abstained:
Lammle; Absent: None. Motion carried.
GOOD SAMARITAN
TIF DISTRICT
IMP. PROJECT 1006
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution adopting a
modification to the redevelopment plan for Redevelopment Project No. 1,
establishing the Good Samaritan Tax Increment Financing District Therein, and
adopting a tax increment financing plan therefor (project no. 1006).
Mr. Jeff Sargent, community development director, explained that several items
must be approved to enable Good Samaritan Society’s construction of an assisted
living facility as an addition to their campus at 8100 27th Avenue North. Mr.
Sargent stated the EDA is asked to pass a resolution adopting the modification to
the redevelopment plan for Redevelopment Project No. 1, establishing the Good
Samaritan Tax Increment Financing District, and adopting a tax increment
financing plan. He stated the TIF District will facilitate the redevelopment of
properties located at 2765 and 2773 Virginia Avenue that were acquired and
prepared for development by the Good Samaritan Society, and will aid in the
construction of a 3‐story, 31‐unit assisted living facility. The TIF assistance will
specifically be used for the construction of public improvements, utilities,
administrative costs and other qualifying expenses.
EDA Meeting
Page 2 August 14, 2017
Mr. Sargent reported that a TIF agreement (development agreement) is being
prepared, and it will be presented on August 28, 2017, for consideration by the
EDA.
Mr. Sargent stated subsequent to adjournment of the EDA meeting, a public
hearing on the TIF plan will be held by the City Council.
Mr. Sargent explained the planning commission reviewed the proposed
development at its August 2 meeting and determined the proposal is consistent
with the city’s comprehensive plan.
Ms. Stacie Kvilvang, Ehlers, explained creation of the Good Samaritan Housing
Tax Increment Financing District will facilitate the construction of 31 assisted
living units, of which seven units will be affordable to households with incomes
at or below 50% of the area median income. She stated the duration of the district
will be 25 years (26 years of increment). She stated it is anticipated that
development will begin in 2017, the facility will be open in late 2018, and the first
tax increment will be generated in 2019. She stated the terms of the development
agreement will be reviewed on August 28. She indicated the TIF plan contains a
maximum budget of $2.9 million, and the project is proposed to be financed by a
pay‐as‐you‐go note.
President Hemken questioned if the assisted living facility would be a tax‐paying
entity. Ms. Kvilvang responded affirmatively.
Commissioner London inquired of the history of the two vacant parcels. Mr.
Sargent indicated Good Samaritan Society purchased the four‐plex properties
located at 2765 and 2773 Virginia Avenue North in 2012 and subsequently
demolished the buildings.
Commissioner London expressed his opposition to tax increment financing as the
housing facility will require city resources (emergency response) greater than the
city’s share of taxes ($2,000) and the taxes will not increase for several years when
the increment is paid. He pointed out the project could not proceed without TIF
assistance. He commented that he would like to review the development
agreement and finances at the initial discussion phase.
Ms. Kvilvang explained the financial analysis process.
RESOLUTION 2017‐11
Item 4
Commissioner Lammle introduced the following resolution and moved its
adoption “RESOLUTION ADOPTING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1,
ESTABLISHING THE GOOD SAMARITAN TAX INCREMENT FINANCING
DISTRICT THEREIN, AND ADOPTING A TAX INCREMENT FINANCING
PLAN THEREFOR (PROJECT NO. 1006)”. The motion for the adoption of the
foregoing resolution was seconded by Commissioner Elder, and upon vote being
taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe,
Lammle; and the following voted against the same: London; 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.
EDA Meeting
Page 3 August 14, 2017
INTERFUND LOAN
IMP. PROJECT 1006
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution authorizing
an interfund loan for advance of certain costs in connection with the Good
Samaritan Tax Increment Financing District (project no. 1006).
Mr. Jeff Sargent, director of community development, stated the EDA is asked to
approve a resolution authorizing an internal (interfund) loan to the Good
Samaritan Tax Increment Financing District (TIF). The resolution would allow the
EDA to reimburse itself up to $20,000 for qualified costs associated with the
establishment of the Good Samaritan Housing TIF District. He noted most
commonly, these costs are administrative fees accrued through the creation of the
district, but could also include costs associated with public utilities, streets and
sidewalks, or other site preparations or improvements.
RESOLUTION 2017‐12
Item 5
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE
OF CERTAIN COSTS IN CONNECTION WITH THE GOOD SAMARITAN
TAX INCREMENT FINANCING DISTRICT (PROJECT NO. 1006)”. 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; and the following voted against the same:
London; 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 993
Item 6
President Hemken introduced for discussion EDA Item 6, Resolution approving
purchase and redevelopment agreement with Regal Homes, LLC for the Sale of
3751 Louisiana Avenue North (improvement project no. 993).
Mr. Aaron Chirpich, community development specialist, explained that RFPs
were provided to 20 builders, and proposals were submitted by Regal Homes,
LLC, Novak‐Fleck Inc. and Tollberg Homes, LLC. Mr. Chirpich reviewed the
proposals of the three builders and indicated Regal Homes was selected as the
preferred builder. He noted Regal Homes recently constructed homes at 4415 and
4417 Nevada Avenue North, and one has sold for $364,000. Mr. Chirpich stated
the same two‐story home design is proposed for the Louisiana site.
The EDA commended city staff and the city attorney’s office for making strides
with the scattered site housing program.
President Hemken opened the public hearing for comments.
Mr. Chuck Schmidt, 3641 Louisiana Avenue North, was recognized. Mr. Schmidt
expressed support for the project. He expressed disappointment that the city is not
more proactive on acquiring houses that need rehab as they detract from the
neighborhood.
Mr. Jeff Sargent, director of community development, explained the legal
limitations. He pointed out that staff is trying to enact a more robust code
enforcement program that may assist with property maintenance.
EDA Meeting
Page 4 August 14, 2017
CLOSE HEARING
Item 6
Motion was made by Commissioner Lammle, seconded by Commissioner Elder,
to close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2017‐13
Item 6
Commissioner Lammle introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AND
REDEVELOPMENT AGREEMENT WITH REGAL HOMES, LLC FOR THE
SALE OF 3751 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT
NO. 993)”. The motion for the adoption of the foregoing resolution was seconded
by Commissioner Elder, 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 8:40 p.m.
Respectfully submitted,
Valerie Leone, City Clerk