062501 EDAOfficial
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
June 25, 2001
File
Copy
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Mary Gwin-Lenth
Commissioner Pat LaVine Norby
1. Call to Order
2. Roll Call
3. Approval of Regular Meeting Minutes of December 11, 2000
4. Discussion Regarding RedevelopmentJRehabilitation Project at 7610 Bass Lake Road
5. Adjournment
CITY OF NEw HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes
Regular Meeting
December 11, 2000
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
LINCOLN
TOWNHOMES
Item 4
MOTION TO
POSTPONE
Item 4
ADJOURNMENT
President Pro tem Collier called the meeting of the Economic Development
Authority to order at 8:25 p.m.
Present:
Don Collier, President Pro tern
Sharon Cassen, Commissioner
Mark Thompson, Commissioner
Absent: W. Peter Enck, President
Pat LaVine Norby, Commissioner
Motion was made by Commissioner Thompson, seconded by Commissioner
Cassen, to approve the Regular Meeting Minutes of September 25, 2000. All
present voted in favor. Motion carried.
President Pro tem Collier introduced for discussion Item 4, Discussion Regarding
Request by Lanel Financial Group, Inc. for Financial Assistance for Rehabilitation
Improvements at Lincoln Townhomes, 7319-7349 62nd Avenue North.
Mr. Kirk McDonald, Director of Community Development, explained that the
developer has contacted the City and requested that discussion on this item be
postponed until January.
Motion was made by Commissioner Thompson, seconded by Commissioner
Cassen, to postpone discussion until the January 8, 2001, EDA Meeting. All
present voted in favor. Motion carried.
Motion was made by Commissioner Cassen, seconded by President Pro tem Collier,
to adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:27 p.m.
Valerie Leone
City Clerk
New Hope EDA
Page 1
December 11, 2000
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 6-25-01 EDA
/' Item No.
By: Kirk McDonald By: 4
/
DISCUSSION REGARDING REDEVELOPMENT/REHABILITATION PROJECT AT 7610 BASS LAKE ROAD
REQUESTED ACTION
Staff requests to update the EDA on a proposal for the redevelopment/rehabilitation of the 11-unit apartment
complex at 7610 Bass Lake Road in conjunction with Project for Pride in Living (PPL), the Northwest
Community Revitalization Corporation (NCRC) and several other funding agencies. Representatives from PPL
and NCRC will be in attendance at the meeting to answer questions. This project was last discussed with the
EDA in February 2000, and at that time the EDA was generally favorable towards the project. The purpose of
this update is to discuss some minor modifications to the original proposal and determine if the EDA would
commit funding to the project with final approvals to be made at meetings in the near future.
POLICY/PAST PRACTICE
In the past, the City has participated in similar collaborations, most recently with the Bass Lake Courl
Townhomes Project. As the EDA is aware, projects of this size require a variety of funding partners and
usually require the expertise of an experienced development agency, such as PPL. Housing redevelopment
has been designated as a high priority of the City Council and this property is identified in the Comprehensive
Plan for redevelopment or rehabilitation and it is also identified in the Livable Communities Grant study area.
BACKGROUND
In 1999, the Northwest Community Revitalization Corporation (also known as the Community Housing
Development Corporation/CHDO) and PPL approached the City and inquired about multiple family properties
in need of rehabilitation for a potential collaborative project. Staff had previously identified the 7610 Bass Lake
Road property as a high priority. Previous attempts to coordinate a rehabilitation project with the owners have
not been successful and a portion of this project would involve acquisition and rehabilitation of the property.
In February 2000, when the project was discussed with the EDA, a collaborative project with the City of Crystal
was also part of the project, with one site in New Hope and one site in Crystal, (both on Bass Lake Road). The
proposal was submitted to the Minnesota Housing Finance Agency for funding, but the two-city proposal was
declined, due to the fact that the MHFA did not favor the Crystal project site. The project was modified to
(cont'd.)
MOTION SECOND
BY BY
I:,ffa\
Request for Action Page 2 6-25-01
include the New Hope site only and resubmitted for funding, however, due to strong competition from
other projects, the project was again not funded by the MHFA. Despite the fact that funding from the
MHFA has been declined, Hennepin County and others still have funding committed to the project, and
PPL and the CHDO desire to proceed with the project in collaboration with the City.
PROJECT DESCRIPTION
The following project description has been provided by PPL:
PROPOSAL
This project consists of the renovation of the 11-unit apartment building at 7610 Bass Lake Road in New
Hope. The building contains six, two-bedroom apartments and five, one-bedroom apartments.
DEVELOPERS
The development partners are Project for Pride in
Revitalization Corporation (NCRC).
Living (PPL) and the
Northwest Community
PPL is a nonprofit community development corporation, which has 27 years of experience rehabilitating
and building new housing. PPL has built over 900 units and owns and manages over 500 units in the
Metro Area, including 34 in New Hope. PPL's property management division maintains PPL's long-term
commitment to the community, providing professional services and access to support for residents who
need it. PPL also developed and now manages over 50,000 square feet of commercial space and
operates four businesses, which provide job training for hard-to-employ adults.
NCRC is regionally focused nonprofit community development corporation providing affordable housing
for Iow and moderate income residents of the northwest metro area. For the past five years, NCRC has
been developing and providing financing for the redevelopment of over 30 units of scattered site
housing. The corporation represents a unique collaboration of the six cities of Brooklyn Center, Brooklyn
Park, Crystal, Maple Grove, New Hope, and Robbinsdale.
WHAT IS PROPOSED?
The plans entail the exterior and interior renovation of the existing apartment building. The building
exterior will be completely renovated, including painting, the repair or replacement of the soffits and
fascia, the provision of a new roof, gutters, and downspouts as necessary, spot tuckpointing and brick
repair, and the repair or replacement of the windows. He landscaping will be improved, the drive
expanded and resurfaced, the walkways repaired, and garages added for each unit.
The interior work will include updating the existing units in their present configuration. New cabinets,
counters and appliances will be provided in the kitchens. The plumbing and electrical will be updated. A
new water heater will be provided and the existing boiler will be inspected and replaced, if necessary.
The walls will be repaired and painted and new carpet will be installed throughout.
The monthly rent for the units will vary from $555 to $710 depending on unit size. At a minimum, nine of
the units would be rented to families earning less than 50% of the area median (e.g. $37,000 for a family
of four). Three of the units would have rents subsidized for lower income families. Two of those three
units would be reserved for residents on the Minneapolis Public Housing waiting list and the other one
(and any of the two not filled by people on the first list) would be used for New Hope residents.
PPL currently has an on-site management office at our other property less than two blocks from the
proposed site. A full-time site manager lives and is employed there. All prospective tenants will be
carefully screened: each must have a good rental history, adequate income to afford the rent, and no
criminal background.
Request for Action Page 3 6-25-01
FINANCING
The total cost of this development is approximately $1.26 million. The financing is proposed to be a
combination of a traditional bank mortgage, investments from the City of New Hope, and Hennepin
County HOME and AHIF funds. The three affordable units are paid for by the Metropolitan Housing
Opportunities Program, which was created to increase the supply of rental housing outside of the central
cities. The attached Development Proforma shows a $338,000 contribution from the New Hope EDA.
TIMELINE
Acquire properties, design new units
And rehab work, secure financing
Neighborhood, City and Planning
Commission review
Finish purchase of all property
Start rehabilitation and construction
February 2000 - August 2001
February 2000 - September 2001
October 2001
October 2001
Complete construction June 2002
CURRENT RENTERS
The work is intended to be performed without substantial displacement of the existing residents. If
existing residents have incomes above 50% of median, they will receive assistance in finding a new
place to live and help with the moving expenses. Tenants wishing to remain in the rehabbed units would
be welcome to do so provided they meet PPL's screening requirements.
ADVANTAGES TO THE COMMUNITY
This development will provide reinvestment in the area's aging housing stock by an owner committed to
maintenance and a long-term relationship with the community. The improved appearance and stability of
the new and rehabbed units will add to the surrounding area's value and livability.
These units will provide an opportunity for young families or single parents to stay in this community or
become part of it. This development represents the next step in PPL and NCRC's continued
commitment to the strength and stability of New Hope. A preliminary site plan and proposed scope of
work is attached.
FUNDING
This property is currently not located in an area where TIF funds can be expended, therefore, the EDA
funds would need to be used for the New Hope portion of the project in conjunction with $77,992 in
CDBG funds that are programmed for multiple family rehabilitation. Another option would be to add this
property to the area where TIF funds can be expended.
ATTACHMENTS
· Location Map
· Project Description
· Development Proforma
· Scope of Work
· Site Plan
· Agency Description
· Livable Communities Maps
· Comprehensive Plan Goals
· February 28, 2000, EDA Minutes
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PROJECT DESCRIPTION
PROPOSAL:
This project consists in the renovation of the eleven-unit apartment
building on 7610 Bass Lake Road in New Hope. The building contains
six, two-bedroom apartments and five, one-bedroom apartments.
DEVELOPERS:
The development parmers are Project for Pride in Living (PPL) and the
Northwest Community Revitalization Corporation (NCRC).
PPL is a nonprofit community development corporation which has 27
years of experience rehabilitating and building new housing. PPL has
built over 900 units and owns and manages over 500 units in the Metro
Area, including 34 in New Hope. PPL's property management division
maintains PPL's long-term commitment to the community, providing
professional services and access to support for residents who need it. PPL
also developed and now manages over 50,000 square feet of commercial
space and operates four businesses which provide job training for hard-to-
employ adults.
NCRC is regionally focused nonprofit community development
corporation providing affordable housing for low and moderate income
residents of the northwest metro area. For the past five years, NCRC has
been developing and providing financing for the redevelopment of over 30
units of scattered site housing. The corporation represents a unique
collaboration of the six cities of Brooklyn Center, Brooklyn Park, Crystal,
Maple Grove, New Hope, and Robbinsdale.
WHAT IS PROPOSED?
The plans entail the exterior and interior renovation of the existing
apartment building. The building exterior will be completely renovated,
including painting, the repair or replacement of the soffits and fascia, the
provision of a new roof, gutters, and downspouts as necessary, spot
tuckpointing and brick repair, and the repair or replacement of the
windows. The landscaping will be improved, the drive expanded and
resurfaced, the walkways repaired, and garages added for each unit.
The interior work will include updating the existing units in their present
configuration. New cabinets, counters and appliances will be provided in
the kitchens. The plumbing and electrical will be updated. A new water
heater will be provided and the existing boiler will be inspected and
replaced if necessary. The walls will be repaired and painted and new
carpet will be installed throughout.
The monthly rent for the units will vary from $555 to $710 depending on
unit size. At a minimum, nine of the units would be rented to families
earning less than 50% of the area median (e.g. $37,000 for a family of
four). Three of the units would have rents subsidized for lower income
families. Two of those three units would be reserved for residents on the
Minneapolis Public Housing waiting list and the other one (and any of the
two not filled by people on the first list) would be used for New Hope
residents.
PPL currently has an on-site management office at our other property less
than two blocks from the proposed site. A full time site manager lives and
is employed there. All prospective tenants will be carefully screened: each
must have a good rental history, adequate income to afford the rent, and
no criminal background.
FINANCING:
The total cost of this development is approximately $1.26 million. The
financing is proposed to be a combination of a traditional bank mortgage,
investments from the City of New Hope, and Hennepin County HOME
and AHIF funds. The three affordable units are paid for by the
Metropolitan Housing Opportunities Program, which was created to
increase the supply of rental housing outside of the central cities.
TIMELINE:
Acquire properties, design new units
and rehab work, secure financing ......... Feb. 2000 - Aug. 2001
Neighborhood, City, and Planning
Commission review ................ Feb. 2000 - Sept. 2001
Finish purchase of all property ................. Oct. 2001
Start rehabilitation and construction ..............Oct. 2001
Complete construction ...................... June. 2002
CURRENT RENTERS:
The work is intended to be performed without substantial displacement of
the existing residents. If existing residents have incomes above 50% of
median, they will receive assistance in finding a new place to live and help
with the moving expenses. Tenants wishing to remain in the rehabbed
units would be welcome to do so provided they meet PPL's screening
requirements.
ADVANTAGES TO THE COMMUNITY:
This development will provide reinvestment in the area's aging housing
stock by an owner committed to maintenance and a long-term relationship
with the community. The improved appearance and stability of the new
and rehabbed units will add to the surrounding area's value and livability.
These units will provide an oppommity for young families or single
parents to stay in this community or become part of it. This development
represents the next step in PPL and NCRC's continued commitment to the
strength and stability of New Hope.
BASS LAKE PROJECT
Development Proforma
USES
Acquisition
1.00 11 Unit Apartment Buildin~ 454,000
Subtotal 454,000,1
Construction
2.00 Demo and Lead Miti~lation 25,000
2.01 :~ehab 11 Units 350,000
2.02 New Garages 110,000
2.03 Site Improvements 55,000
2.04 Contincgenc¥ 50,000
Subtotal 590,000
Soft Costs
3.01 Architectural 30,000
3.021 Environmental 3,000
3.03! Legal 15,000
3.041 Cost Certification 3,000
3.05 Survey and Plat 3,000
3.06 Utilities and Insurance 2,000
3.07 Taxes 10,000
3.08 Closin~ Costs 3,000
3.09 Interim Holdin~ Costs 8,000
3.10 Relocation 25,000
3.11 Marketin~ and Lease Up 1,000
3.12 Construction Interest 5,000
3.13 Loan Origination Fee 1,300
3.14 Developer Fee 95,000
3.15 Reserves - MHOP 15,000
Subtotal 219,300
4.00 Total Development Cost 1,263,300
SOURCES
5.00 1st Mortcja~e 126,300
5.01 New Hope EDA 338,000
5.02 Hennepin Co. HOME 350,000
5.03 Hennepin Co. AHIF 100,000
5.04 MHOP 349,000
Total Sources 1,263,300
Prepared by: PPL, June 12, 2001
7610 Bass Lake Road - Proposed Scope of Work
19-Jun-01
Exterior Work
Roof, downspouts, gutters
Windows and doors
Tuckpointing, soffit and fascia, painting
Parking lot overlay and concrete repair
11 new garages
Landscaping and grading
Subtotal
Est. Cost
35,000
26,000
14,000
20,000
110,000
15,000
Interior Work
Update electrical
Boiler, water heater, zone valves, etc.
Plumbing repair and fixtures
Bath updates, medicine cabinets
Wall repair and painting
Carpet and foyer repair
New cabinets and countertops
New appliances
Smoke alarm update, misc.
Subtotal
10% Contingency
Contractor OH&P
24,000
20,000
15,000
11,000
25,000
20,000
40,000
15,000
10,000
TOTAL
220,000
180,000
40,000
50,000
490,000
16:13 PPL HOUSING/DEVL
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PPL's Mission is to assist Iow- and moderate~ncome to become self-sufficient by
addressing ff~eir job, housing, and neighborhood needs.
PPL directly s~jrves over 2,000 participants
and indirectly assists thousands more in
Minneapolis and Saint Paul through 14 pro-
grams relating to jobs and training, housing,
neighborhood development, and self-suffi-
ciency.
Project for Pride in Living (PPL) was formed in 197:2
out of a dcsir~ of thc fouudcrs to hclp people help
thcmscIves. In its carly ycars, PPL s~n-vcd low-
in,omc families in south Minneapolis by renovating
homes with homeowner's assistance. Since then,
guided by an cntrc~rcnem'ial spirit, PPL has grown
and services provided have expandcd to meet more
of the nc~ds of the community it scrvcs. PPL not
only delivers services to meet thc curr~t ncexls of its
participants, but also helps build long-term skills and
values needed for a lifetime of self-sufficiency. This
impact is multiplied as PPL's programs, participants
and properties become symbols of hope in the com-
munity. PPL has become a widcly-rcsp~cted, strong
and stable organization whosc mis-
sion is aligned with today's social
conccms and changes.
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Give me a fish and I eat for a day; teach me to fish and I eat for a lifetime.
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W lo does NCRC ser~c?
NC .'RC serves first limo homobuyers with inoomes as low es in tho mid S20.000 pet' year
e~i u ~'~ e,~ the high S40,o00's.
p.2
Policy Plan
Eo
Accomplish transitions between distinctly differing types of land uses in an orderly
fashion which does not create a negative (economic, social or_ physical) impact on
adjoining developments.
F. Infill development of compatible land uses shall be strongly encouraged.
G. Where practical, conflicting and non-complementary uses shall be eliminated
through removal and relocation.
RESIDENTIAL GOAL~ 'ii:
Goal 1: Provide a variety of housing types, styles and choices to meet the needs of
New Hope's changing demographics.
Policies:
Through infill development and redevelopment efforts, increase.life cycle housing
opportunities not currently available within the City (i.e., high value housing,
townhomes).
Promote medium density attached housing to address the needs of an expanding
empty nester or independently living elderly population.
Continue the City's efforts to provide special needs housing for people with various
types of disabilities.
Goal 2:
Maintain and enhance the strong character of New Hope's single family
residential neighborhoo(:s.
Policies:
Promote private reinvestment in the City's single family housing stock.
Examine City development regulations to provide greater development flexibility for
single family homeowners.
Prevent the in,'rusion of incompatible land uses into Iow density single family
neighborhoods.
City of New Hope
12
Comprehensive Plan Update
Development Framework
Policy Plan
D. Aggressively enforce the City's housing maintenance regulations.
Provide community education and information to local prope~y owners on home
maintenance, repair, and assistance opportunities.
Pursue the redevelopment of substandard single family homes when it is judged not
economically feasible to correct the deficiencies.
Encourage neighborliness through block clubs, block parties or neighborhood
associations.
Goal 3:
Promote multiple family housing alternatives as an attractive life cycle
housing option.
Policies:
Redevelop substandard multiple family properties that display deteriorated building
conditions, no site amenities, poor site design, or incompatible land use patterns
when it is judged not economically feasible to correct the deficiencies.
Adhere to the highest community design and construction standards for new
construction and redevelopment projects.
Accompany medium and high density development with adequate accessory
amenities such as garages, parking, open space, landscaping, and recreational
facilities to insure a safe, functional, and desirable living environment.
Consider mixed land uses as an alternative land use option in planning and
redevelopment of obsolete commercial or industrial sites.
Encourage neighborliness through block clubs, block parties or neighborhood
associations.
City of New Hope
Comprehensive Plan Updah.
13
Development Framework
ADJOURNMENT
(PPL), the Northwest Community Revitalization Corporation (NCRC) and a variety
of funding agencies. The collaborative project consists of two separate sites: one at
7610 Bass Lake Road in New Hope and the second at 5111-5211 56m Avenue Norlh
in Crystal. The projects in both cities would be submitted to funding agencies for
consideration under a single funding request.
Mr. Chris Wilson explained the proposed project stating the existing 11-unit
apartment building would have exterior improvements, attractive landscaping, an
expanded and resurfaced drive, and construction of garages. Interior work will
include new cabinets and counters, new carpeting, updated electrical, and wall
repair and painting. The market rate rents would range from $600 to $1,000
depending on unit size. He explained the rental criteria. The total cost of the
development is approximately $4.6 million.
President Enck questioned PPL's intentions to utilize the on-site manager from the
nearby PPL site for these additional units.
Mr. Wilson indicated a manager can normally handle 80 units. He pointed out the
existing New Hope site has 34 and the proposed project would add 24 units for a
total of 58 units.
Discussion ensued regarding support service~ offered by PPL. President Enck
questioned whether they would offer a parenting class. Resources such as area
churches and the Thorson Resource Center were identified. Ms. McCormick
indicated she would review PPL's self sufficiency management programs already
planned as well as the funding allocations.
Mr. Wilson noted that the project would be a partnership with PPL and the
Northwest Community Revitalization Corporation (also known as the Community
Housing Development Corporation/CHDO). The ownership structure has not been
determined yet.
Mr. George Garnett responded to the EDA's questions concerning funding. He
stated the financial request from New Hope would be $350,000.
Mr. McDonald reminded the EDA that at this time staff is seeking 'concept'
approval only.
The EDA expressed support for the project, but directed staff to determine the
City's financial commitments for such a project as well as available funding sources
before additional effort is expended.
Motion was made by Commissioner Collier, seconded by Commissioner Thompson,
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
New Hope EDA
Page 2
February 28, 2000
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes
Regular Meeting
February 28, 2000
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
ELDORADO COURTS
APTS.
Item 4
MOTION
Item 4
7610 BASS LAKE
ROAD
Item 5
New Hope EDA
Page I
President Enck called the meeting of the Economic Development Authority to order
at 7:51 p.m.
Present:
W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Pat LaVine Norby, Commissioner
Mark Thompson, Commissioner
Motion was made by Commissioner Collier, seconded, by Commissioner Thompson,
to approve the Regular Meeting Minutes of February 14, 2000. Voting in favor.
Cassen, Collier, Norby, Thompson; Abstained: Enck. Motion carried.
President Enck introduced for discussion Item 4, Motion Authorizing Staff to
Obtain Appraisal of Eldorado Courts Apartments at 7701/7721/7741/7761 62'~
Avenue North.
Mr. Kirk McDonald, Director of Community Development, indicated the property is
for sale and staff would like the EDA's authority to obtain an appraisal of the four-
unit complex by BCL Appraisals for a cost of $3,200.
Mr. McDonald reported that the estimated market value of the property for taxes
payable in 2000 is $140,000 per property or a total of $560,000. The realtor has
indicated the current asking price is $880,000.
Mr. McDonald stated the Eldorado Apartments are located in an area designated in
the City's Comprehensive Plan for future redevelopment.
The EDA expressed support for possible redevelopment.
Motion was made by Commissioner Cassen, seconded by Commissioner Norby, to
authorize staff to obtain an appraisal of Eldorado Courts Apartments at
7701/7721/7741/7761 62°~ Avenue North. All present voted in favor. Motion
carried.
President Enck introduced for discussion Item 5, Discussion Regarding Concept
RedevelopmenffRehabilitation Project at 7610 Bass Lake Road.
Mr. Kirk McDonald, Director of Community Development, introduced Barb
McCormick and Chris Wilson of PPL and George Garnett, Executive Director of
Northwest Community Revitalization Corporation.
Mr. McDonald explained that staff would like to determine whether the EDA has an
interest in pursuing the redevelopment/rehabilitation of the l l-unit apartment
complex at 7610 Bass Lake Road in conjunction with Project for Pride in Living
February 28, 2000