020899 EDA Official File Copy
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
February 8, 1999
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Pat LaVine Norby
Commissioner Mark Thompson
1. Call to Order
2. Roll Call
3. Approval of Regular Meeting Minutes of January 25, 1999, and Closed Meeting Minutes
of January 25, 1999
4. Resolution Authorizing and Calling for a Closed Meeting of the New Hope Economic
Development Authority (Improvement Project No. 614)
5. Adjournment
CITY OF NEW HOPE.
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes January 25, 1999
Regular Meeting City Hail
CALL TO ORDER Presidem Enck called the meeting of the Economic Development Authority to
order at 8:03 p.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby, Thompson
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Kern
APPROVE MINUTES Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
to approve the EDA minutes of January 11, t999. All present voted in favor.
Motion carried.
IMP. PROJECT 493 President Enck introduced for discussion Item 4, Public Hearing - Resolution
Item 4 Authorizing the Conveyance of Certain Real Property to Senior Outreach Services,
Inc. (Improvement Project No. 493).
Mr. Dan Donahue, City Manager, explained that this is the public hearing to
consider the conveyance of a portion of the city-owned property located at 5501
Boone Avenue North to Senior Outreach Services, Inc. for the construction of an
adult day care facility called CareBreak.
Councilmember Norby excused herself from the meeting at 8:05 p.m. and returned
at 8:14 p.m. following the vote on Item 4.
Mr. Donahue stated that due to recent f'mdings that the site will require significant
soil corrections, Senior Outreach Services has requested that the City continue the
public hearing until it can present the new information to their Board to determine
whether they want to proceed with the project. He noted the recent sale of
NorthRidge to Minnesota Masonic Homes is another factor as Masonic Homes has
expressed an interest in becoming a partner with CareBreak.
Mr. Donahue requested continuing the public hearing until March 8, 1999. Ms.
Deb Rose, CareBreak, interjected that they would be prepared discuss it on
February 22"d.
MOTION Motion was made by Commissioner Cassen, seconded by Commissioner Collier,
Item 4 to continue the public bearing regarding the conveyance of property to Senior
Outreach Services to February 22, 1999. All present voted in favor. Motion
carried.
IMP. PROJECT 597 President Enck introduced for discussion Item 5, Discussion regarding Revised
Item 5 Plan for Ponding Improvements/Soil Corrections at 9200 49th Avenue and
Authorize Staff to Negotiate for Easement (Improvement Project No. 597).
Mr. Kirk McDonald, Director of Community Development, advised the EDA that
Contract Hardware is pursuing an alternate site. He stated based on previous EDA
direction, staff was directed to pursue soil corrections and ponding improvements
regardless of whether Contract Hardware purchased the property. The intent is to
New Hope EDA January 25, 1999
Page 1
prepare a buildable site that could be marketed to a new business. Mr. McDonald
stated plans and specifications have been prepared for the project. The estimated
cost is $125,000. Mr. McDonald stated that an easement would be necessary over
a portion of the property directly north of the city site and requested authorization
to seek an easement.
Mr. McDonald noted Collisys, the business located farther north of 9200 49"~, is
also considering improvements on the eastern portion of their lot and water quality
improvements will be required as part of the improvements. It may be cost
effective for the City and Collisys to construct the required ponding improvements
in conjunction with the 9200 49th Avenue improvements.
Commissioner Collier expressed concern regarding the substantial investment and
whether the City will be able to recoup its costs.
Mr. McDonald emphasized that the major reason the property was purchased was
because it was identified in the Surface Water Management Plan as a future water
quality ponding area.
Commissioner Cassen pointed out that the City's tax base will be expanded by
construction of one or two buildings on the property.
MOTION Motion was made by President Enck, seconded by Commissioner Cassen,
Item 5 directing staff to proceed with easement negotiations, discussions with
Collisys, and preparation of the necessary documentation. Voting in favor:
Enck, Cassen, Norby, Thompson; Against: Collier. Motion carried.
IMP. PROJECT 614 President Enck introduced for discussion Item 6, Resolution Approving Second
Item 6 Addendum to Redevelopment Contract Between New Hope and EDA, Project for
Pride in Living, Inc. and PPL/Bass Lake Court Limited Partnership and
Authorizing President and Executive Director to Sign Said Addendum.
Mr. Steve Sondrall, City Attorney, briefly explained that the original agreement
was in the form of a loan/grant for $1,400,000 then it was amended to a grant and
now in order to qualify for tax credit PPL's advisors have indicated it must be
documented in the form of a loan.
EDA Commissioner Collier introduced the following resolution and moved its adoption:
RESOLUTION 99-01 "RESOLUTION APPROVING SECOND ADDENDUM TO REDEVELOP-
Item 6 MENT CONTRACT BETWEEN NEW HOPE EDA, PROJECT FOR PRIDE
IN LIVING, INC. AND PPL BASS LAKE COURT LIMITED
PARTNERSHIP (PROJECT 614)". The motion for the adoption of the foregoing
resolution was seconded by COmmissioner Norby, and upon vote being taken
thereon, the following voted in favor thereof: Enck, Cassen, Collier, Norby,
Thompson; and the following voted against the same: None; Abstained: None;
Absent: None; whereupon the resolution was declared duly passed and adopted,
signed by thc president which was attested to by the executive director.
CLOSED MEETING President Enck introduced for discussion Item 7, Resolution Authorizing and
Item 7 Calling for a Closed Meting of the New Hope Economic Development Authority
(Improvement Project No. 614).
City Attorney Sondrall stated a resolution must be passed to allow the EDA to
conduct a closed meeting. He stated the closed meeting will allow him to discuss
New Hope EDA January 25, 1999
Page 2
legal strategies regarding the Spur Gas Station condemnation. He stated the gas
station at 7300 Bass Lake Road was needed to complete the Project for Pride in
Living project (Improvement Project No. 614).
EDA Commissioner Cassen introduced the following resolution and moved its adoption:
RESOLUTION99-02 "RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED
Item 7 MEETING OF Tltlg NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY". The motion for the adoption of the foregoing resolution was
seconded by Commissioner Collier, and upon vote being taken thereon, the
following voted in favor thereof: Enck, Cassen, Collier, Norby, Thompson; 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 Norby, seconded by Commissioner Cassen, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:24 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA January 25, 1999
Page 3
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes January 25, 1999
Closed Session City Hall
CALL TO ORDER President Enck called the closed meeting of the Economic Development Authority
to order at 8:30 p.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby, Thompson
Staff Present: Sondrall, Donahue, Leone, McDonald
IMP. PROJECT 614 Mr. Steve Sondrall, City Attorney, discussed legal strategies in connection with
the Spur Gas Station condemnation relative to the Project for Pride in Living, Inc.
Project (Improvement Project No. 614).
The EDA directed the City Attorney to file an appeal relative to the
Commissioner's Award.
ADJOURNMENT 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 its closed meeting at 8:55 p.m.
Respectfully submitted, J
Valerie Leone
City Clerk
New Hope EDA January 25, 1999
Page 1
EDA
~ ~~,)~~1 REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
EDA
Community Development
2-8 Item No.
ByY~irk McDonald ~ 4
RESOLUTION AUTHORIZING AND CALLING/FOR A CLOSED MEETING OF THE NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY (IMPROVEMENT PROJECT NO. 614)
The enclosed Resolution Authorizing and Calling for a Closed Meeting of the New Hope Economic
Development Authority has been prepared by the City Attorney in regards to the Spur Gas Station
condemnation. Per the attached correspondence, this resolution is in follow-up to the January 25 closed
meeting regarding this matter. At the February 8 meeting, the City Attorney will update the EDA
concerning negotiations with the attorney for Murphy Oil regarding settlement of this matter. The City
Attorney is requesting adoption of the resolution during the regular EDA meeting. This will allow the
EDA, after adjournment of the regular meeting, to conduct a closed session to discuss the litigation in
conjunction with the above referenced property.
Staff recommends approval of the resolution.
MOTION BY ~~ SECOND BY
!
JENSEN SWANSON & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1999
TELEPHONE (612) 424-8811 · TELEFAX (612) 493-5193
GORDON L. JENSEN*
WILLIAM G. SWANSON
STEVEN A. SONDRALL
MARTIN P. MALECHA
C. ALDEN PEARSON?
DEAN A. TRONGARD~'
JULIE A. THILL
February 3, 1999
OF COUNSEL
LORENS Q. BRYNESTAD Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Resolution Requesting Closed Meeting to Discuss Spur Condemnation
Litigation
Our File No.: 99.53046
Dear Kirk:
Please find enclosed proposed EDA Resolution Authorizing and Calling for a Closed
Meeting of the New Hope Economic Development Authority. This resolution relates to
the Spur condemnation litigation for the property at 7300 Bass Lake Road.
The resolution is in follow-up to the January 25, 1999 closed meeting regarding this
matter. At the February 8a' meeting I will update the EDA concerning my negotiations
with the attorney for Murphy Oil regarding settlement of this matter.
Please contact me if you have any questions or comments regarding the resolution.
Very truly yours,
Steven A. Sondrall
JENSEN SWANSON & SONDRALL, P.A.
Enclosure
cc: Dan Donahue-
Valerie Leone
P:\AttO ra~yXSAS~ L~tI~rs\CN tt53046_Kit k01 Art.will
'Real Property Law Specialist
Certified By The
Minnesota State
Association
?Qualified ADR N~tral
EDA RESOLUTION NO. 99-
RESOLUTION AUTHORIZING AND CALLING
FOR A CLOSED MEETING OF THE
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS, Minn. Stat. {}471.705, Subd. l(d) authorizes and permits the New Hope EDA
to hold a closed meeting to discuss City issues and information protected by the attorney-client
privilege, and
WHEREAS, the New Hope EDA has commenced or has been made a party to a lawsuit
or been threatened with litigation which has presently activated its right under the referenced
statute to hold a closed meeting, and
WHEREAS, specifically the EDA is a party to a lawsuit commenced pursuant to Minn.
Stat. Chap. 117 identified as Hennepin County District Court File No. CD - 2504 to acquire the
Spur gas station located at 7300 Bass Lake Road. Said property being needed to complete an
affordable housing project and satisfy the EDA's contractual obligation with Project For Pride In
Living, Inc. and the Minneapolis Public Housing Authority for the completion of said project, and
WHEREAS, a closed meeting of the New Hope EDA is necessary to consider the
acceptance or rejection of a settlement offer/proposal and to consider various legal strategies for
the continued prosecution or defense of said action.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That a closed meeting of the New Hope EDA shall be held on February 8, 1999
immediately following the adjournment of the regular meeting of the New Hope
City Council, or adjournment of the regular meetings of the New Hope EDA or
HRA in the event said public bodies have a regularly scheduled meeting on said
day, at the New Hope City Council Chambers.
2. That the purpose of the meeting shall be the discussion of settlement alternatives
and prosecution/defense strategies in connection with litigation of Hennepin County
District Court File No. CD - 2504.
3. That said meeting shall not be open to the public.
4. That the New Hope City Clerk is hereby directed to tape record the closed meeting
and preserve the tape recording for a period of two years from the date of the
meeting.
5. That the New Hope City Clerk shall prepare a written roll of the members and all
other persons present at the closed meeting and make said roll available for public
inspection upon adjournment of the closed meeting.
Adopted by the Economic Development AuthoritY in and for the City of New Hope this
8th day of February, 1999.
W. Peter Enck, Chairman
Attest:
Daniel J. Donahue, Executive Director