072417 EDAEDA Meeting
Page 1 July 24, 2017
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes July 24, 2017
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:51 p.m.
ROLL CALL Present:
Absent:
Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Eric Lammle, Commissioner
Staff Present:
Kirk McDonald, City Manager
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
Steve Sondrall, City Attorney
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 June 26, 2017. All present voted in favor. Motion carried.
IMP. PROJECT 997
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
the solicitation of rehabilitation quotes in association with the EDA owned
property at 3984 Zealand Avenue North (improvement project no. 997).
Mr. Aaron Chirpich, community development specialist, explained that on April
27, 2017, the EDA purchased the vacant and foreclosed single‐family home located
at 3984 Zealand Avenue North for $165,000 with the intent to rehabilitate the
house and maximize the value of the finished product. He reported there is
substantial work needed for the exterior and interior of the home. He illustrated
photographs of the property and explained the recommended rehabilitation
efforts. He also reviewed alternate items that would be bid separate from the base
bid.
Mr. Chirpich stated staff has worked with a realtor to estimate the value of the
completed home based upon the desired scope of work. He reported the estimated
value of the completed home is $265,000 which would allow the EDA to utilize
approximately $75,000 to complete the rehabilitation of the home.
Mr. Chirpich asked the EDA for authorization to proceed with obtaining quotes
from area contractors for the completion of the rehabilitation work.
EDA Meeting
Page 2 July 24, 2017
The EDA inquired of the property’s maintenance. Mr. Chirpich stated the city’s
contractor currently mows the lawn. The EDA requested staff eradicate the weeds
in the driveway as soon as possible.
Commissioner London reported the property is in his neighborhood and he will
abstain from the vote as the property could be considered a comparable sale to his
property. Commissioner London commented on the likelihood that the property
will sell for more than $265,000, and he encouraged staff to expend the funds
necessary to produce a quality home.
Director Sargent commented that the EDA does not need to make a profit on the
home sale which enables a larger rehab budget. He stated the objective of the
scattered site housing program is to make the home more aesthetically pleasing
for the neighborhood and to bring a higher valued property onto the tax rolls.
Director Sargent emphasized the need to obtain quotes for the work in order to
finalize the budget. He thanked the EDA for their flexibility with the project.
RESOLUTION 2017‐10
Item 4
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING THE SOLICITATION OF REHABILITATION
QUOTES IN ASSOCIATION WITH THE EDA OWNED PROPERTY AT 3984
ZEALAND AVENUE NORTH (IMPROVEMENT PROJECT NO. 997)”. The
motion for the adoption of the foregoing resolution was seconded by
Commissioner Hoffe, and upon vote being taken thereon, the following voted in
favor thereof: Hemken, Elder, Hoffe; and the following voted against the same:
None; Abstained: London; Absent: Lammle; 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 8:10 p.m.
Respectfully submitted,
Valerie Leone, City Clerk