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050800 EDAOfficial File Copy CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North May 8, 2000 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat LaVine Norby Commissioner Mark Thompson 2. 3. 4. Call to Order Roll Call Approval of Regular Meeting Minutes of April 10, 2000 Motion Authorizing Staff to Proceed with Activities to Prepare for Demolition of City- owned Commercial Building at 5550 Winnetka Avenue North (Improvement Project No. 669) Discussion Regarding Potential Redevelopment at 3601 Winnetka Avenue and Request for Financial Assistance for Demolition Activities 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes Regular Meeting April 10, 2000 City Hall CALL TO ORDER ROLL CALL APPROVE MINUTES POTENTIAL APT. REHABILITATION PROJECT Item 4 New Hope EDA Page 1 President Enck called the meeting of the Economic Development Authority to order at 7:31 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 Norby, seconded by Commissioner Cassen, to approve the Regular Meeting Minutes of March 27, 2000. All present voted in favor. Motion carried. President Enck introduced for discussion Item 4, Discussion Regarding Request for Financial Assistance for Potential Apartment Rehabilitation Project at 4110 and 4120 Nevada Avenue North and 7200 41't Avenue North. Mr. Kirk McDonald, Director of Community Development, indicated the owner of the three 12-unit apartment buildings, located west of New Hope Bowl and south of the Mobil Station, is requesting consideration of financial assistance to make improvements to the buildings utilizing the City's Apartment Rehabilitation Loan Program. Mr. McDonald stated the buildings were constructed in 1962 and have an estimated market value of $299,000 each. He briefly reviewed the loan program. The items proposed by the owner for repair include: siding, window trim, soffit/fascia work, and garage roof. President Enck reported that he inspected the area and had an opportunity to converse with the apartment manager. He recommended expanding the scope of the project and noted a number of potential improvements in addition to those proposed by the owner. President Enck provided staff with a list of items to be considered in a potential project. Commissioner Collier noted that such a project may require greater than $100,000 in financial assistance. The EDA was generally supportive of a loan in excess of $100,000 if additional improvements were included in the project. The EDA expressed preference to a thorough, aesthetically-pleasing, renovation project. Commissioner Norby advised against a "no interest" loan. Mr. McDonald confirmed that the financial arrangements of the program call for a "low interest" loan. Commissioner Cassen asked if there are guidelines in place to prohibit the owner from imposing substantial rent increases after completion of the improvements. Mr. April 1 O, 2000 ADJOURNMENT McDonald and the City Attorney reported regarding the last similar project at which time the rent increases were restricted to the consumer price index. Mr. McDonald indicated he would report back after researching this issue further. Mr. McDonald stated if the EDA is supportive of pursuing the request, staff recommends authorizing staff to meet with the property owner to discuss the project in detail. Following this meeting, a financial analysis would be prepared to determine the ability to repay the loan. The EDA unanimously directed staff to meet with the property owner to discuss a potential project. Motion was made by Commissioner Norby, seconded by Commissioner Collier, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 7:40 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 April 10, 2000 EDA t RE IIF T FOR ACTION Originating Depa~i~uent Approved for Agenda Agenda Section EDA Community Development · Item No. By: Kirk McDonald By:. 4 MOTION AUTHORIZING STAFF TO PROCEED WITH ACTIVITIES TO PREPARE FOR DEMOLITION OF CITY-OWNED COMMERCIAL BUILDING AT 5550 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 669) REQUESTED ACTION Staff is requesting that the EDA approve a motion authorizing staff to proceed with pre-demolition activities at 5550 Winnetka Avenue North. These activities would include coordinating with the City Engineer on the preparation of plans and specifications for demolition of the building and seeking quotes for water/sewer disconnect, asbestos survey, etc. The specifications for demolition would be brought back to the EDA for approval prior to seeking bids and the quotes on the other minor work will also be presented to the EDA for approval. POLICY/PAST PRACTICE The City has acquired other commercial/industrial properties in the past for redevelopment purposes and has authorized demolition of the buildings. This property is identified in the Comprehensive Plan update for future commercial redevelopment. BACKGROUND At the February 14 EDA meeting, the EDA approved a motion authorizing staff to prepare a purchase agreement for the acquisition of the commercial property known as the Donut Shop, located at 5550 Winnetka Avenue North, in the amount of $308,000. This was a voluntary transaction from a willing seller, and due to the fact that the building was vacant, no business relocation expenses were incurred by the City. The closing on the property took place on April 28. Staff now desires to move forward with the demolition process, unless the City Manager or EDA determine an interim use for the property. Staff is specifically requesting to move forward with the following activities: 1. Coordinate with the City Engineer on the preparation of plans and specifications for the demolition of 1,300 square foot, one-story masonry structure in preparation for seeking bids from contractors for the demolition. Once the plans and specifications for demolition are completed, th~.v wn~Jld h~. nr~_.~nted tn th~. FF')A fr~r annroval and a~JthoriT~tinn tn .~P. ek hid.~ from contractors. __ ! Request for Action Page 2 5-08-00 Seek quotes for the disconnection of the water/sewer services. When quotes are received they will be presented to the EDA for award. In preparation for demolition and in conjunction with the preparation of plans and specifications, it is quite likely that an environmental survey of the interior of the building for asbestos, light fixtures, etc. will be required. Staff is requesting authorization to seek quotes on this activity also, with the quotes being presented to the EDA for award. The tentative schedule would be to completed these activities in May/June and have the building demolished in July or August. Staff assumes that it is the intent of the EDA to landbank the 20,700 square foot parcel for future commercial redevelopment in conjunction with adjacent properties. The parcel has been placed on the contract mowing list for maintenance this spring/summer. FUNDING The property is located in an area where TIF funds can be expended and TIF funds were utilized for acquisition and staff recommends that the same funding source be utilized for demolition activities. The Building Official estimates that the cost for demolition at approximately, $12,000 - $15,000. I 5550 Winnetka ~ 20,281 SF ~ (~g) ~ 7809 7801 BLR BLR 115,400 SF (20) (2~) : 14,700 5540 Winnetka , SF (?) ~ 13,500 SF (~8) (2) (~?) Bass Lake Road -Winnetka Avenue Redevelopment Total *Added Taxes Size of 1998 Tax Appraised Property Parcel (SF) Valuation Value AcquisitiOncost DemolitiOncost TotaIcostCity Landat B-4Value GeneratedcommercialbY (Before (@ $10 SF) Development Purchase) (over 20,,,yrs) 5550 Winnetka 20,281 $160,000 $280,000 $308,000 $14,000 $322,000 $202,810 $105,857 5540 Winnetka 13,500 $95,000 $120,000 $8,000 $128,000 $135,000 $70,463 7809 Bass Lake Road 15,400 $110,000 $175,000 $8,000 $183,000 $154,000 $80,380 7801 Bass Lake Road 14,700 $199,000 $275,000 $15,000 $290,000 $147,000 $76,727 All Four Parcels 63,881 $564,000 $280,000 $878,000 $45,000 $923,000 $638,810 $333,427 Combined *Added tax revenues are calculated based upon similar developments in the City. For this estimate, McDonalds at 42nd & Winnetka was used due to the value of the property and building, although the type of development for this area is not a fast-food restaurant. The properties currently pay $18,873 in taxes per year. Using the McDonald's example, it is estimated that development at this parcel could raise close to $40,000 in taxes. This estimate is conservative, as the McDonald's parcel is much smaller and lower in building value than the desired redevelopment for this project. Over 20 years, the increased revenues for this properly, based on the conservative estimate equals $420,000. This value, adjusted for the present value of future revenue, equals $333,427 of value in 2000. Also, this cost-benefit analysis does not include the benefits to adjacent property owners of redevelopment and the potential redevelopment this may spur in the area. Projected Expenses: Projected Revenues: $923,000 $972,237 Return to the City: $49,237 02/09/2000 PLANNING DISTRICT 6 Plannin~ Districts_ This district's borders are Winnetka Avenue to the west, the C.P. Rail System to the south, and Crystal to the east and north, with a jagged northern border. 'District 6 is primarily Iow density residential with areas of multi-family residential and commercial development scattered along Bass Lake Road. The following recommendations are offered for Planning District 6. The Iow density residential neighborhoods in District 6 are generally in good condition, however, two Iow density redevelopment target areas have been identified within Planning District 6. In addressing the Iow density residential land uses in District 6, the following recommendations are made: The City will aggressively promote private reinvestment in the existing single family housing, through housing renovation seminars and programs, and the through the enforcement of the Point of Sale Housing Maintenance Code. Scattered site housing renovation and redevelopment will be pursued on selected lots within District 6. The City has targeted the Iow density residential area along Bass Lake Road and the Bass Lake Road extension. This area is characterized by small homes in marginal condition on large lots. The City will seek to acquire and redevelop these sites as new Iow to medium density residential land uses. A second Iow density residential area targeted for redevelopment consists of a number of very deep lots along Winnetka Avenue between Bass Lake Road and 53rd Avenue. The redevelopment of this area is intended to alleviate poor housing conditions, improve ac, c, ess onto Winnetka and more fully utilize the available land. New Iow density residential land uses will be encouraged on the remaining vacant parcels in District 6. The medium and high density residential land uses in District 6 are located along Bass Lake Road. Inspection of these land uses find these areas in various states of disrepair. The renovation of medium and high density land use in District 6 includes: The City is currently participating in the redevelopment of a blighted non- conforming medium density residential site located along Bass Lake Road Cit~ of New Hope Comprehensive Plan Updafl, 85 Development Framework P/annin~t Districts between Nevada and Pennsylvania Avenues. This redevelopment is being undertaken with a non-profit organization along with the cooperation of lSD 281 .and the City of Crystal. This project provides a working example of projects that will provide a much needed housing resource and correct land use infrastructure concerns. The proposed land use plan has been modified to illustrate the resulting medium density land use for the site. bo A second undeveloped target area involves a high density residential site located along Winnetka Avenue north of Bass Lake Road. This site displays declining building and site conditions. The City will pursue building renovation and/or redevelopment as conditions permit. Within Planning District 6, an aggressive strategy for enhancing the commercial character along Bass Lake Road is recommended including: .~,.~ Expand the commercial land use patterns along Bass Lake Road to increase ' the land area for commercial redevelopment. / b. Assemble and redevelop smaller commercial sites to create larger Q .._~/ commercial lots for contemporary retail, service and office uses. Co In cooperation with the City of Crystal, establish a commercial streetscape that enhances the overall character of the Bass Lake Road commercial corridor. Ci~ of New Hope Comprehensive Plan Update Development Framework BROOKLYN PARK ). 101 FUTURE DEVELOPMENT AND REDEVELOPMENT SITES Q Residential Opportunity Commercial Opportunity Industrial Opportunity Commercial/Industrial Opportunity Deteriorating / Blighted Area.~ Underdeveloped Areas Vacant Areas i Source: City of New Hope, · Base Map: · Bonestroo Rosene 0 1000 2000 3000 ~a~'-r Andedik & Associates SCALE IN FEET City of New Hope GOLDEN VALLEY Comprehensive Plan Update REQUEST FOR ACTION Originating Depa~l~ent Approved for Agenda Agenda Section Community Development Item No. BY:Kirk McDonald By:. 5 DISCUSSION REGARDING POTENTIAL REDEVELOPMENT AT 3601 WINNETKA AVENUE AND REQUEST FOR FINANCIAL ASSISTANCE FOR DEMOLITION ACTIVITIES REQUESTED ACTION Staff requests to discuss with the EDA a potential redevelopment at 3601 Winnetka Avenue and a request for financial assistance for demolition activities. POLICY/PAST PRACTICE In the past the EDA has considered requests for financial assistance for commercial/industrial/housing developments on a case-by-case basis and, in some instances, has provided funds for site preparation work to support a redevelopment project. BACKGROUND As the EDA is aware, the property at 3601 Winnetka was formerly the site of a gas and service station and the building has been vacant for several years. The parcel contains approximately 38,000 square feet and the existing brick and steel service station building contains 2,000 square feet with canopies. The property has 190 feet of frontage on Winnetka and 195 feet of frontage on 36th Avenue and is currently zoned B-3, Auto-Oriented, Business District. The marginal commercial sites along 36th Avenue have been identified in the Comprehensive Plan as commercial redevelopment target areas. Over the past year, city staff has received a number of inquiries about the site, with most re-using the site as a B-3 automotive-related use. The most recent discussion was regarding a drive-through Pilgrim Cleaners, similar to the one located at 42nd and West Broadway in Robbinsdale. The City has recently been contacted by a developer from the Acacia Real Estate Group, LLC who has indicated they have purchased the property. They are interested in constructing a new 8,000 square foot commercial building that would accommodate several tenants, potentially including a Star Bucks Coffee with sidewalk caf~ and a Pilgrim Cleaners. They have inquired about the City's interest in assisting with the project and have requested $25,000 from the City for building demolition/site clearance costs. As is routine, staff requested that they put their request in writing and advised that the EDA considers requests on a case-by-case basis. The developer has indicated that if a new building is not possible, they may re- use the existing structure. Staff supports demolishing the existing building. MOTION BY SECOND BY RFAoOO 1 ~ Request for Action Page 2 5-08-00 The current market value of the property is $293,000, which generates approximately $13,000 in taxes per year, with approximately 23 percent or $3,000 going to the City. It is estimated that a new building would generate at least twice that amount in tax revenue. If the EDA is interested in pursuing this request for financial assistance for redevelopment, staff recommends that the EDA direct staff to meet with the developer to discuss exactly what the City funds would be utilized for ($25,000 for demolition seems high) and to have the developer identify specific tenants/commitments and submit detailed plans. Any financial assistance from the City should be tied to a Development Agreement based on a specific development proposal. FUNDING The property is not located in a TIF area or an area where pooled TIF funds can be expended, so funding for the project most likely would need to come from EDA funds. There is also a possibility that some grant funding sources may be available for the site. ATTACHMENTS · Developer Correspondence · Zoning/Topo Maps · Property Survey · Comprehensive Plan Excerpts · Tax Information · Business Link Article From the desk o~ John C. 15~0 Wayzata Bk~, Sure 836 Phon~ 512.475.2255 F~ $12,475.225~ Fax Tm Kirk McDonald/Phil Kern Frmm John C. IVla~eau Fax: ~. R~ 36~ & Winnmka cc~ JJL [] Urge~ [] r-or Rmdew [] me.se Cerement · Comaten~ Thank you for getting back to me to discuss the above referenced property. As we discussed my company is interested in constructing a 8000 sq tt retail center. The proposed center would be tastefully constructed with sidewalk seating for a coffee shop and awnings on the building to compliment to brick facing. We request that the city of New Hope remove the current structure and foundation at a cost of no more than $25,000 to the city. If the city is not willing to remove the current structure, the numbers will not work, and we will need to paint the current structure and use it as an automotive use. We truly hope that we can work with your department on this project- Sincerely, John C. Marceau 40TH AVE N ~ ....... R-O :: I-1 NATIVITY BETH EL CEMETERY ,..3.6Ttd AVE N ST 3OSECH S CATHOLIC', CHURCH SONNESYN ELEMENTARY SCHOOL AQUILA z Z' < < O 35TH A~ZE N'_ '. .... 34~H PL N' z .Z ? z_ 3~'~ A~/E N, O') z ,o' (..0 ~J I AVE N Z 32'ND - PL,~CE N ~ ~ ~ NOR'~HERN -DR ........ - Z ..... ch~__ Z' ~ ...................... -- '- - -- - 31ST AVE N z . .< ~i-~?-"--~VE -N---- - o ..... ~." . > -~ > '" ........... ~. - ....... ' uJ. '- '"¢'~ .... ~' .... -- I-2 AVE N 922.S × .9 ,X 919.8 921 .! X 919,3 ,. N . CONC. CuRB ..... 233.00 ..... POWER POLE S'FEEL GUARD ~,.. ~. ,~ BRICK WA eL--- ~TER BROOKLYN PARK 101 COMMERCIAL REDEVELOPMENT TARGET AREAS City of New Hope GOLDEN VALLEY Base Map: Bonest roo Rosene AndeHik & Associates N~G- June 1998 0 1000 2000 3000 SCALE IN FEET Comprehensive Plan Update 45 Development Framework Community Perspectives District 20 District 20 consists of strong single family neighborhoods with some multiple family and commercial land use along 36th Avenue District 20 Issues · Some scattered site housing rehabilitation has been identified to maintain housing conditions. · Northwood Park drainage improvements and park redesign is an opportunity to ...-----_~improve the park's function and ver. sa61ity~. (~, s~m a~om~ite~"s along' ~6t~Aven U'-e ~ave~bee~if~ X,,, potential redevelopment. District 21 District 21 consists of an industrial area along lower Quebec Avenue. District 21 Issues Promote further expansion of existing industries. District 22 District 22 contains a broad range of land use including single family, multiple family and commercial uses. District 22 Issues Promote the redevelopment of two undersized over-utilized commercial properties at the west corner of Oregon Avenue and 42nd Avenue. Single family homes are characterized as having single car garages. The poor condition of the twin homes along Oregon Avenue between 38th and 40th Avenues make these sites candidates for scattered site redevelopment. City of New Hope Comprehensive Plan Update 38 Planning Tactics 'Hennepin County Map Server wysiwyg://54/http ://www3.co.hennepin.mn...e=Hennepin&cmd=Find&VALUE= 1811821440004 Hennepin County, Minnesota Last update: 05/02/2000 at 08:15 AM 18-118-21-44-0004 767 ft. 37,653 sq.ft. = 0.864 acres 3601 WINNETKA AVE N $ 293,000 $ 12,902.34 NEW HOPE, MN 55427 Property Information ~ ;~ Helo ~ N~e~ by ~ro~rty Address j ; New Search by Pro~ iD j This information is to be used for reference purposes only. Hennepin County does not guarantee the accuracy of the material herein contained and is not responsible for any misuse or misrepresentation of this information or its derivatives. If map discrepancies are found, please contact the Hennepin County Surveyors Office at (612) 348-3131. The quality of the display may be influenced by your screen s~ze and resolution setting, and is best viewed at 800x600 screen resolution. This application requires Internet ExpIorer 3.02 or Netscape 2.01 or later version for proper operation Copyright © 2000 Hennepin County 1 of I 05/04/2000 9:44 AM $i#n Code Chan#e~ To Help You The New Hope City Council approved a new sign code this fall. which contains a number of in- dustry-requested up- grndes. Some of highlights in- clt, de the following: Grotmd signs are now allowed to be 100 square feet (st'). instead of 75 sr. Grot, nd signs are now allowed to be 30 feet high, tip from 20 feet. Electronic "reader board" signs are now al- lowed a three second message "hold "minimum. Commercial, industrial and apartment buildings are now allowed a larger (75 sf) "For Sale", "For Lease," or "For Rent" sign. Those owning prop- erty along State Highway # 169 are allowed 150 sr. }-toxxever said sions must be removed within seven clays of tile sale or lease. Larger construction and remodeling signs are mm permitted at 32 st: Windox¥ signs are still a I lox\ cd on on ly one wall, xxith an increase in area to 33 percent of the total xx indoxv area. · Shopping Centers may now have a single grotmd sign of 300 si: not over 30 feet in height, instead oftxvo smaller signs. For more detail on the new 18-page sign code, call Doug Sandstad in the Communit), Development Department at 531-5122.~. On tl e OrawJn# Board Projects recently considered for approval, or on the drawing board, include the following: Sound Wall - A proposal has been submitted to construct a 10-foot tall sound barrier/fence at 8201 54th Avenue at the old United Hard- ware building· The barrier will help to block trucking noise to adja- cent residential properties, and allow 100 percent utilization of the building. Extensive landscaping will also be added in front of the wall. Archives Expansion - Archives Corporation, 3401 Nevada Avenue, recently reviewed a proposal with staff to double the size of its existing facility and the plans will be considered by the City in early November. ~. Prime Property Available A good commercial building, built in 1964, has just been vacated at an active intersection. The lot and/or building has potential for redevelopment or a new use. Location: 3601 Winnetka Avenue North (36* and Winnetka) Former Use: Gas and service station Lot Size: 37,050 square feet (.85 acres) Parking: 37 spaces Zoning: B-3, Auto-Oriented Business Building Size: 2,000 square feet Building Type: Brick and steel Street Frontages: 190' on Winnetka + 195' on 36'~ Avenue North Utilities: In place in roadxvay Property is awdilalJle at $8t1~ and Ifinnetlia. Traffic Volume: 14,000 average daily trips (ADT) on Winnetka Avenue / 11,000 ADT on 36'~ Avenue North Owner Contact: Watch for real estate listing Notes: This property is kitty-corner from new and very successful "Winnetka Commons" Shopping Center City Contacts: Doug Sandstad at 531-5122, and Kirk McDonald at 531-5119. ~. ,4 A/ote £rom...A/ew Hope Safety Camp A sincere "thank you" goes out to all of the local businesses and organizations who sup- ported the 1998 Safety Camp. The three day camp for youth encompasses a wide variety of topics ranging from fire safety to babysitting to 911 emergencies. It is a program that couldn't happen without the support of great community organizations. For information on how you can be a part of the 1999 Safety Camp, contact Susan at 531-5153.~