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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