051099 EDA -- Official File Copy
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
May 10, 1999
President VV. 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 April 12, 1999, and April 26, 1999; and Closed
Session Meeting Minutes of April 26, 1999
4. Resolution Authorizing Appraisals and Commencement of Negotiations to Acquire 7500
42nu Avenue North (Improvement Project No. 474)
5. Discussion Regarding Request for Financial Assistance for Potential Rehabilitation
Project at 8113 Bass Lake Road
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes April 12, 1999
Regular Meeting City Hall
CALL TO ORDER President Enck called the meeting of the Economic Development Authority to
order at 7:56 p.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby, Thompson
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Johnson, Coone,
Rudolph, Watts
APPROVE MINUTES Motion was made by Commissioner Cassen, seconded by Commissioner Collier,
to approve the Regular Meeting Minutes of March 22, 1999. All present voted in
favor. Motion' carried.
NW I-IENNEPIN President Enck introduced for discussion Item 4, Resolution Exploring the
DEVELOPMENT Establishment of the NW Hennepin Development Coalition.
COALITION
Item 4
EDA Commissioner Collier introduced the following resolution and moved its adoption:
RESOLUTION 99-05 "RESOLUTION EXPLORING THE ESTABLISHMENT OF TIlE NW
HENNEPIN DEVELOPMENT COALITION". 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 the president which was attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Thompson, seconded by Commissioner
Norby, to adjourn the meeting. All present voted in favor. Motion carried. The
New Hop6 EDA adjourned at 7:57 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA April 12, 1999
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes April 26, 1999
Regular Meeting City Hall
CALL TO ORDER President Enck called the meeting of the Economic Development Authority to
order at 8:06 ~.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby, Thompson
Staff Present: Sondrall, Hanson, Donahue, Leone
CLOSED MEETING President Enck introduced for discussion Item 3, Resolution Authorizing and
Item 3 Calling for a Closed Meeting of the New Hope Economic Development Authority.
Mr. Donahue stated the closed meeting will allow the City Attorney to update the
EDA on the Spur Gas Station condemnation as it relates to the Project for Pride in
Living Project No. 614.
EDA Commissioner Collie3 introduced the following resolution and moved its adoption:
RESOLUTION99-06 "RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED
MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY". The motion for the adoption of the foregoing resolution was
seconded by Commissioner Thompson, and upon vote being taken thereon, the
following yoted 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 Collier, seconded by Commissioner
Thompson, to adjourn the meeting. All present voted in favor. Motion carried.
The New Hope EDA adjourned at 8:07 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA April 26, 1999
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes April 26, 1999
Closed Session City Hall
CALL TO ORDER President Enck called the closed meeting of the Economic Development Authority
to order at 8:08 p.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby, Thompson
Staff Present: Sondrall, Hanson, Donahue, Leone
IMP. PROJECT 614 Mr. Steve Sondrall, City Attorney, provided an update regarding the settlement
strategies .in connection with the Spur Gas Station (7300 Bass Lake Road)
condemnation relative to the Project for Pride in Living, Inc. Project
(Improvement Project No. 614).
MOTION Motion was made by Commissioner Cassen, seconded by Commissioner
Thompson, authorizing the City Attorney to settle the case for a specified
amount as recommended by the City Attorney. All present voted in favor.
Motion carried.
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 8:15 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA April 26, 1999
Page 1
Originating Department Approved for Agenda Agenda Section
EDA
Community Development 95)
5-10-9 Item No.
ByKirk McDonald By:. 4
RESOLUTION AUTHORIZING APPRAISALS AND COMMENCEMENT OF NEGOTIATIONS TO
ACQUIRE 7500 42ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 474)
ACTION REQUESTED
Staff recommends that the EDA approve the attached resolution authorizing the necessary appraisals
and the commencement of negotiations to acquire the property located at 7500 42nd Avenue for
redevelopment purposes.
POLICY/PAST PRACTICE
Since the early 1990s, the City has taken a number of actions to acquire the three industrial properties
located at the northeast corner of 42"d and Quebec Avenues for redevelopment purposes. The City
acquired and demolished the Electronic Industries building at 7516 42nd Avenue in 1993, and the City
acquired and demolished the Foremost building at 7528 42nd Avenue between 1993 and 1995. One
property remains to be acquired at 7500 42"~ Avenue. Over the years, the City has had a number of
conversations with the property owner, Terry Jensen, regarding the potential acquisition of the property
by the City and the City has had three appraisals completed on the property in 1992, 1996, and 1997.
Ardel Engineering is a tenant in the building located on the site. In August 1997, the EDA approved a
resolution authorizing the commencement of eminent domain proceedings to acquire the property at
7500 42"d Avenue North, but the action has not been implemented.
The environmental cleanup and future redevelopment of the three industrial sites located at the
northeast corner of Quebec Avenue and 42nd Avenue is identified as a goal of the Comprehensive Plan.
(cont'd.)
MOTION BY -'~,~/'~ SECOND BY ~~
!
Request for Action Page 2 5-10-99
BACKGROUND
The owner of the property has recently been in contact with the City again to inquire about the City's
interest in acquiring the property. Ardel Engineering's lease will terminate on May 31 and an agreement
was not reached between the owner and tenant to renew the lease. Ardel Engineering is in the process
of vacating the building and is relocating to Science Industry Park in the City. The property owner is in
the process of marketing the property. Due to the fact that the building is being vacated, the City would
have no responsibility for relocation costs.
Per the City Attorney's correspondence, it appears that now is an opportune time to recommence
discussion with the property owner regarding the EDA's purchase of 7500 42"d Avenue. The opportunity
presents itself due to the pending vacation of the property by the current tenant, Ardel Engineering, by
June 1.
The enclosed resolution authorizes the EDA to obtain an updated appraisal of the property and
commence negotiations with the property owner for.acquisition of the property as of June 1, when the
property officially becomes vacant and unoccupied. This will allow the City to avoid payment of tenant
relocation expenses, which has been the policy for acquisition of all properties initiated by an owner's
request to sell to the City or EDA under the scattered site acquisition policy.
The owner has recently obtained his own appraisal of the property indicating a market value of
$545,000. Once the City has its appraisal on the property updated, the EDA will need to determine the
dollar amount it is willing to authorize as a ceiling for acquisition. The owner has also indicated that he
wants to be reimbursed for lost rent during the month of June in the event he agrees to keep the
property vacant, so there should be some discussion concerning the amount of a non-refundable
payment to the property owner in consideration for his agreement to keep the property vacant during the
negotiation period.
Lastly, the City Attorney points out that the attorney for the property owner has become his law partner,
since last dealing with the property owner in 1997, and the EDA should be aware of and discuss this
issue.
ATTACHMENTS
· Resolution
· 5/5 City Attorney Correspondence
· Site Map
· Lease Termination Letter
· Comprehensive Plan Excerpts
EDA RESOLUTION NO. 99-
RESOLUTION AUTHORIZING APPRAISALS
AND COMMENCEMENT OF NEGOTIATIONS
TO ACQUIRE 7500 - 42~° AVENUE NORTH
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope as follows:
WHEREAS, the Economic Development Authority in and for the City of New Hope
(hereafter EDA) adopted Resolution No. 97-07 (copy attached as Exhibit A) at its August 25,
1997 meeting authorizing acquisition of the property at 7500 - 42"a Avenue North by direct
negotiation or eminent domain; and
WHEREAS, the Director of Community Development in his February 25, 1999 letter
informed the owner of 7500 - 42"~ Avenue North the City/EDA was not interested in acquiring
the property at the present time based on the lack of a specific development plan or developer for
the property (copy of letter attached as Exhibit B); and
WHEREAS, the EDA does hereby ratify and approve the action taken by the Director of
Community Development as set out in his February 25, 1999 letter; and
WHEREAS, the EDA has subsequently learned the property will become vacant and
unoccupied as of June 1, 1999; and
WHEREAS, acquisition of the property during a period when it is vacant and unoccupied
will permit the EDA to avoid payment of tenant relocation expenses required by the Federal
Uniform Relocation and Assistance Act and Minn, Stat. Chap. 117; and
WHEREAS, the EDA has previously authorized an appraisal for this property to determine
a fair market value and purchase price in the event its acquisition can be obtained; and
WHEREAS, the prior EDA appraisals should be updated to establish the property's current
fair market value; and
WHEREAS, the owner of the property has informed the EDA he is willing to keep the
property vacant after the current tenant vacates the premises until July 1, 1999 upon payment of
a non-refundable fee as reimbursement for lost rent to assist the EDA in avoidance of incurring
tenant relocation expenses upon acquisition of the property; and
WHEREAS, the owner has also informed the City he has recently had completed an
appraisal of the property indicating a market value of $545,000.00.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope, Minnesota, as follows:
1. That the foregoing recitals are incorporated by reference.
2. That the action taken by the Director of Community Development in his February
25, 1999 letter is approved and ratified as the action of the EDA and had the effect of nullifying
the EDA's direction set out in Resolution No. 97-07.
3. That the Executive Director is directed to obtain an updated appraisal of the
property, which appraisal will provide the property's fair market value.
4. That the Executive Director is authorized and directed, as of June 1, 1999 or when
the property becomes vacant which ever occurs later, to commence direct negotiations with the
property owner to acquire the property at 7500 - 42nd Avenue North based on the market value
indicated in the EDA appraisal or a fair negotiated amount determined at the discretion of the
Executive Director but at a price not to exceed $
5. That the Executive Director is authorized and directed to pay to the owner a non-
refundable fee not to exceed $ to guarantee the property remains vacant during
the month of June on condition said fee is applicable to the purchase price of the property in the
event acquisition of the property is successful.
6. To take any other action determined necessary in the discretion of the Executive
Director to acquire the property as per the conditions set out in this resolution.
Adopted by the Economic Development Authority in and for the City of New Hope,
Minnesota this l0th day of May, 1999.
W. Peter Enck, President
Attest:
Daniel J. Donahue, Executive Director
p:xAtto19~y\Cllll I~solutiom~l~DA - Rt~o Auth ApO - ?~0 4211d.v,~l
FROM: NEW HOPE CITY HALL FAX NO.: 612 551 51D$ 09-04-9? 09:19A P.01
De~t. Phone · i
EDA RE~OLUTION NO. 97- ~7
RESOLUTION AUTHORIZING CO~ENCEMENT
OF EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE PROPERTY AT
7500 42ND AVENUE NORTH
BE IT RESOLVED Dy the Economic Development Authority in and
for the City of New HOpe, Minnesota as follows:
WHEREAS, the Housing and Redevelopment Authority in and for
the City of New Hope (hereafter the HRA) was established end
organized within the City of New Hope under authorization of New
Hog.e Code §2.30 et. seq. and Minn. St e~_. §462.415 et. seq,, and
WHEREAS, the HRA, actin9 pursuant to the authority of Minn.
Stat. §462.415 et. seq. established Redevelopment Plan 85-2,
Redevelo414aent Project 85-2 and Tax Increment Financing Plan 85-2 by
adoption of HRA Resolution No. 85-08 on December g3, 1985, and
WHEREAS, Minnesota Law 1987, C. 291 § 48, which repealed Minn.
· ., Stat. §462.415 et. seq. provided that all orders, resolutions,
motions, plans and agreements and actions taken by any municipal
housing and redevelopment authority organized or purported to be
orQan~zed under Minn. Stat §462.&15 to 462.705 and Minnesota Law
1959 C. 545 § 1 to 19, and'taken or purported to be taken by any
governing body, city planning commission or political subdivision
of the state or public state body with respect to plans and
projects are hereby declared va]id and effective, and
WHEREAS, the New Hope City Council on December 23, 1985
approved the adoption of RedeYelopment Plan 85-2, Redevelopment
Project 85-2 and Tax Increment Financing Plan 85-2 by its
Resolution No. 85-129, and
WHEREAS, the Economic Development Authority in and for the
City of New Hope (hereafter the EDA) was organized and established
within the City of New Hope by Ordinance No. 89-7 adopted by the
City Council on March 27, 1989 under authorization of Minn. Stat,
§469.090 et, seq., and
WHEREA~, the EDA was transferred control, operation and
authority over Redevelopment Plan 85-2, Redevelopment Project 85-2
and Tax Increment Financing Plan 85-2 Dursuant to HRA Resolution
No. 89-4, City Resolution No. 89-73 and EDA Resolution No. 89-3,
and
1
FROM: HEW HOPE CITV HALL FAX HO.: 612 531 5136 09-04-9? Bg:20A P.02
~HER~A~, the property located at 7500 42nd Avenue North
hereafter legally described is included in the Redevelopment Plan,
Redevelopment Project and Tax Increment Financing Plan area:
The East 1OO feet of the South 350 feet of Lot 5,
Auditor's Subdivision No. 324, Hennepin County, Minnesota
except road and alley.
PID No. 17-118-21-22 0000,
and
WHEREAS, the goals and objectives of the Redevelopment Plan
and Redevelopment Project include among others the following goals
and objectives:
a. provide compatible and complementary land uses;
b. provide more homogeneous land uses and street treatment
along 42nd Avenue in order to unify development and
provide a positive image of the City;
c. promote and secure development and redevelopment in a
manner that atlows the most logical- and efficient
arrangement and intensity of land uses;
d. to undertake certain land acquisition, parcel assembly
and parce] disposition necessary to eliminate substandard
and non-conforming uses and bui]dings, and to assemble
]ogical conforming and more efficient building sites;
e. to promove and secure the redevelopment of non-conforming
]and uses and substandard buildings in a way which
provides a clearer definition of land uses and more
efficient utilization of parcels;
and
WHEREAS, the Economic Development Authority in,and for the
City of New Hope does hereby determine that the acquisition of this
property is reasonably necessary and convenient to the furtherance
of the referenced goals and objectives of the redevelopment plan
and redevelopment project, and that in its judgment the acquisition
of this property will be for the benefit of the public health,
welfare and safety of the citizens of New Hope, and
WHEREAS, an appraisal of this property has been previously
okdered by the EDA and that said appraisal has been completed as of
May 28, 1997 establishing a fair market value for the subject
property of $344,0OO.00, and
FROM: NEW H'OPE CITY HALL FAX NO.: 612 531 5156 09-04-9? 09:20A P.03
,, ~HEREA~, Minn. Stat. §117,232 authorizes the EPA to acquire
the subject property by direct, purchase in lieu of eminent domain
proceedings, and
WHEREAS, Minn. Stat. §¢69.101, Subd. 4 gives the Economic
Development Authority in and for the City of New Hope the authority
to acquire property by power of eminent domain under Minn. Stat.
Chapter 117, including the power of acquiring possession of the
property per the "quick-take" provisions of §117,042, if necessary
to carry out the redevelopment plan and redevelopment project, and
WHEREAS, the Economic Development Authority ~n and for the
city of New Hope has determined it is necessary to acquire this
property by direct purchase or eminent domain proceedings, and
WHEREAS, said redevelopment plan and redevelopment project
were established under the authority of Minn. Stat. Chap. 462
pursuant to various studies undertaken by the City of New Hope
which have shown that certain redevelopment activities in the plan
area are warranted and would no~ have occurred through private
development alone.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That the Executive Director is hereby directed and
authorized to acquire by direct purchase at the appraisal value of
$344,000.00 the property at 7500 42nd Avenue North in the City of
New Hope, ~egal]y described as follows:
The East 100 feet o¢ the South 350 feet of Lot 5,
Auditor's Subdivision No. 324, Hennepin County, Minnesota
except road and alley.
PIP No. 17-118-21-22 000§.
In addition to this amount, the Executive Director is authorized to
pay all reasonable closing costs associated with the purchase of
property. Further, the Executive Director is authorized to retain
a relocation expert to determine the amount of relocation expenses
the EPA must pay by law a~ a result of this acquisition and pay to
th'e appropriate parties all required relocat ion expenses as
determined. ~f direct purchase is unsuccessful, the Executive
Director is authorized and directed to commence eminent domain
proceedings under Minn, St~.~. C~apter 117 to acquire the subject
property.
2. That the Executive Director i~ further directed to
utilize the "quick-take" procedure per Minn. Stat. §117.042 if in
'--' 3
FROM: NEU HoPE CITV HRLL FRX NO,: 612 531 $1J$ 89-04-9? 09:20~ P.04
the judgment of the Executive Director it is necessary to acquire
possession of the property prior to the conclusion of the eminent
domain proceedings.
3, That the Executive Director is hereby directed and
authorized to obtain additional appraisals necessary to est&b]ish
fair market value and just compensation for said property in
preparation for said eminent domain proceedings.
, Adopted by the Economic Developmen~ Authority in and for the
City o¢ New Hope this 25th day of August, 1997.
W, Peter Enck, President
Attest: _
Daniel J, ~onahue, Executive Director
4401XylonAvenue North City Hall: 612-531.5100 CityHall Fax: 612-531.5 ~3~
New Hope, Minnesota 55428.4696 Police: 612.531.5170 Police Fax:
Pubiic Works: 812.533.4822 Public Works Fax: 6~2-533.7~,¢2
TDO: 612-53f-5109 Fire Dep't. Fax: ~12-53~-Er75
February 25, 1999
Mr. Terry Jensen
5600 Vicksburg Lane North
Plymouth, MN 55446
Subject: City's Potential Acquisition of 7500 42"~ Avenue
Dear Mr. Jensen:
Thank you for taking time to meet with City Manager Dan Donahue and me on February 8 to discuss the
City's potential acquisition of your property at 7500 42'''~ Avenue. The City Ma.n. ager has requested that I
inform you that the City has no immediate plans for developing the property and that you should proceed
to do whatever you feel is necessary with your current tenant. The City does have an interest in
acquiring the property in the future. However, due to a number of other projects the City is currently
involved with, the City has not had adequate time to develop plans on how the property could be
redeveloped. It is our feeling that until such time as plans are developed and approved by the City
Council, the Council would probably not be in favor of acquiring the site.
Thanks again for meeting with us. I hope that we can communicate in a cooperative manner on this
subject in the future.
Sincerely,
Kirk McDonald
Director of Community Development
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Valerie Leone, City Clerk, (improvement Project #.474)
Family Styled City ' ~'; ~ For Family Living
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* E-MAIL jss~jsspa.com
WILLIAM G. SWANSON
STEVEN A. SONDRALL May 5, 1999
MARTIN P. MALECHA
C. ALDEN PEARSONt
DEAN A. TRONGARD']'
Kirk McDonald
JULIE A. THILL
Community Development Director
City of New Hope
OF COUNSEL 4401 Xylon Avenue North
LORENS Q. BRYNESTAD New Hope, MN 55428
Re: Acquisition of Property at 7500 - 42~a Avenue North
Our File No.: 99.11111
Dear Kirk:
Please f'md enclosed for consideration at the EDA meeting on May 10, 1999 a proposed
resolution Authorizing Appraisal and Commencement of Negotiations to Acquire 7500 -
42~ Avenue North.
Notwithstanding your February 25, 1999 letter to the property owner, it appears this is
now an opportune time to recommence discussion with the property owner regarding the
EDA's purchase of 7500 - 42~ Avenue North. Basically, the opportunity presents itself
due to the pending vacation of the property by the current tenant Ardel Engineering. It
is my understanding Ardel Engineering is moving its operations to another location within
the city as of the end of this month. As a result, the property at 7500 - 42~ Avenue North
could be vacant as of June 1, 1999.
The enclosed resolution authorizes the EDA to obtain an updated appraisal of the property
and commence negotiations with the property owner Terry Jensen for the acquisition of
the property as of June 1, 1999 when the property officially becomes vacant and
unoccupied. As you know, this will allow the City to avoid payment of tenant relocation
expenses which has been our policy for acquisition of all properties initiated by an owner's
request to sell to the City or EDA under our scattered site acquisition policy.
It is my understanding the owner has recently obtained his own appraisal of the property
indicating a market value of $545,000. The enclosed resolution will require some
discussion by the EDA concerning our opinion on market value and the dollar amount they
are willing to authorize as a ceiling for acquisition discussion. We previously attempted
to acquire this property for $344,000. This was based on our latest appraisal from BCL
Appraisals dated May 28, 1997. Also, I note in my file that the City received a letter from
the attorney for the property owner on April 23, 1993 offering to sell the property for
$325,000 subject to 8 conditions (see copy enclosed). However, conditions 2, 3, 4, 6 and
7 made the 1993 offer to sell unacceptable to the EDA. I believe the 1993 offer was made
· Real Pro~rty Law Sl~eialist
c~,a ay ~ by the owner due to our recent acquisition of the foremost property at that time.
Minn~ota Sram l~t
Association
'~Qualified ADR N~utral
May 5, 1999
Page 2
It is my further understanding that the owner wants to be reimbursed for lost rent during the month of June
in the event he agrees to keep the property vacant. As a result, there will need to be some discussion
concerning the amount of a non-refundable payment to the property owner in consideration for his
agreement to keep the property vacant during the negotiation period. I have left a blank space in the
resolution for this item as well. I believe the owner has informed us his monthly rent for the property is
approximately $4,900.
I also want to make it clear that the attorney for the property owner is my law panner. However, in 1993
and 1997 I was not in a parmership with the owner's attorney. This situation should be discussed at the
EDA meeting as well.
If you have any questions or comments regarding the enclosed resolution or the information contained in
this letter, please contact me.
Very t,ruly yours,
Steven A. Sondrall
JENSEN SW^NSON & SONr~LL, P.^.
Enclosures
cc: Daniel J. Donahue
Valerie Leone
CNH 11111-01-Kirk Ltr.wpd
JENSEN & SWANSON, P.A.
A~o~NkYs ^T I~w
8525 E~Naa~
Su~Ts ~20
B~,w P~. Mm~r~ 55443
WILIJ~M G, SWANSON April 23, 1993 (612) 424-8811
~c}c. mDD.. ~tPa, JR.
~x.~ L~L~O,mD Fay (612) 493-5193
Da~ d.
OF
d,m~ P.
o/O Kirk ~cDonald
4401 Xylon Avenue North
New Hope, NN 55428
Re: 7516 - 42nd Avenue North
New Hope, ~±nnesota
"Ardel Engineering" Property
Dear ~r. ~cDonald:
Z represent ~r. and ~rs. Terry ~ensen, the owners o£ the property
at 7516 - 42nd Avenue North, New Hope, ~innesota. Signi£ioant
issues have been raised, discussed and continue to evolve around
the contamination and/or apparent contamination a££ecting property
in the neighborhood o£ my client's property. It is my
understanding £rom news reports, £ncluding speoi£icalZy the New
Hope Post, dated April 21, 1993, that the New Hope
Development Authority has acquired neighboring property at 7528 -
42nd Avenue North flor a purchase of 8450,000.00, with certain other
accommodations made to the current owner.
~y clients are willing at this time to entertain an o££e= from the
New Hope Economic Development Authority £or acquisition of their
property at 7516 - 42nd Avenue North, New Hope, ~±nnesota.
Further, ~r. ~ensen advises me that he would at the present time
be willing to accept the sum of $325,000.00, subject to execution
within the next thirty days of an acceptable purchase agreement
~hioh provides:
l. A mutually acceptable closing date;
2. Continued possession of the property by my clients and the
cUrrent tenants until December 31, 1995, with no expense to
my clients except utilities and general maintenance;
3. A reservation of salvage rights to be exercised at the
expiration of the period for possession;
*Real Estate Specialist Ccrtillcd lly Thc Minnesota State Bar Association
Page 2
4. Assumption by the City of all special assessments against the
property;
5. Pro ration of the real estate taxes effective as of the date
of closing;
6. Acceptance of the property in its "as is" condition effective
as of the date rights to salvage expire;
7. S~ecific acceptance of the property without any responsibility
for contamination and/or cleanup costs in regard to the
property;
8. Reservation in the purchase agreement of a right to an
exchange pursuant to the provisions of Section 1031 of the
Internal Revenue Code.
Please advise me as soon as possible as to whether the New Hope
Economic Development Authority and/or the City of New Hope wish to
present an offer to purchase as we are currently in ~he process of
lease negotiations with a tenant. Your decision will bear on these
negotiations in particular as to the length of term we offer for
any extension.
Thank you.
Sincerely,
Gordon L. Jenson
GLJ/3mb
cc: Terry Jensen
bcc: Steve Sondrall
281\tlj12-3
April 29, 1999
Terry Jensen
5600 Vicksburg Lane
Plymouth, MN 55446-1411
Dear Terry,
I am writing to inform you that Ardel Engineering will be terminating our lease at
7500 42na Avenue North effective at midnight May 31, 1999. Please contact me with any
questions or concerns.
S incere~..--~
Frank Pichelman
President
7500 42nd Ave. No. · Minneapolis, MN 55427 · Phone 6121533-5324
o{ ~ss L~ke ~d
~re~c~pe (multi-jur~dimion~
of medium ~nd high
~edeve~opmen¢
~u~er ~ve~ue / Bass L~ke
~ Helium dens~ re~eve,o~mec~
~bcont (Pond P)ace deve{opment
o~po~unities)
Industrial redeve!opment site
(demolish existing building)
expansion / cooperative
rearrangement with Cit~
Sims Park parking and
turnaround
gle family r~evelopment oreo
',ommerciot red~elofment
s~e~sc~pe
~Medium densi~ md~eJopment
oppo~uni~ ~win Home~)
[::)rminage issues
Cornrnunity Perspective~
District 13
District 13 includes the residential neighborhoods surrounding Cooper High School.
District 13 Issues
· Land use compatibility issues with regard to the high school and adjoining
neighborhoods generally relate to students leaving school (trespassing, loitering).
· Reuse of the Homeward Bound facility in a manner that would be compatible with
surrounding residential neighborhoods.
· Some scattered site single family redevelopment or rehabilitation is needed for
select sites in District 13.
· Apartments located at Xylon Avenue and 45th Avenue face flooding and settling
problems due to its proximity to adjoining wetland/ponding area.
District 14
District 14 is a single family area located east of Winnetka.
District 14 Issues
· Development of the vacant site at the comer of 49th Avenue and Winnetka Avenue.
· Deep single family lots along 49th Avenue may offer some opportunity for future
redevelopment.
District 15
District 1.5 consists of the industrial area along Quebec Avenue.
District 15 Issues
·~ln'place expansio.__________~n o__f exi___stjn~_~
industri~
, at the' n~~er of Quebec Avenue and. 42nd Avenue.
~ CAh/of New Hope Comprehensive Plan Update
Planning TacScs
.......... . ........................ , ...... Cornmunit)/Perspective,~
· Identification of the future land use of the Quebec Avenue/42nd Avenue site related.
to the City's 42nd Avenue image. "~,
District 15
This planning district includes areas of single family, multiple family and commercial land
uses. Infrastructure improvements for the northern portion of the district are scheduled
for year 2002.
District 16 Issues
· Scattered site single family redevelopment is needed for select sites throughout
District 16. A concentration of candidate sites are located along the west side of
Nevada Avenue between 42nd Avenue and 45th Avenue.
· The apartments south of Fred Sims Park have had problems with stormwater
drainage and lacks amenities.
· Fred Sims Park needs to provide a parking and vehicle turn around area.
· Stormwater ponding at the Oregon Avenue/46th Avenue intersection presents
problems for traffic and street maintenance.
District 17
District 17 encompasses the New Hope's City Center described as the commercial focal
point of the community.
District 17 Issues
· Street and streetscape improvements are needed along 42nd Avenue, 45th Avenue
and Xylon Avenue. These improvements are intended to improve both the function
and appearance of these streets.
· Xylon Avenuei42nd Avenue/Gethsemane Cemetery entrance intersection should
be aligned and improved to facilitate improved traffic movement and safety at the
Xylon intersection.
City of New Hope Comprehensive Plan Update
Planning Tactics
35
~y~. ~ EDA
Originating Depaxtment Approved for Agenda Agenda Section
i~~ EDA
Community Development
5-10-99 Item No.
DYKirk McDonald
DISCUSSION REGARDING REQUEST FOR CIAL ASSISTANCE FOR POTENTIAL
REHABILITATION PROJECT AT 8113 BASS LAKE ROAD
ACTION REQUESTED
Staff has received the enclosed correspondence from the new owner of the fourplex property located at
8113 Bass Lake Road requesting consideration of financial assistance to rehabilitate the building and
site. Staff requests to discuss this request with the EDA and get direction on how to proceed.
POLICY/PAST PRACTICE
In 1993, the EDA established a loan program directed at maintaining multi-family rental housing. The
program is directed at those properties with the greatest need, and basic improvements such as
roof/window replacement, wiring, heating and mechanical repairs carry a higher funding priority, as
opposed to amenities. Financing is provided by the EDA in the form of a Iow interest loan to leverage
private funds and normally a 50/50 matching of funds is required for eligible projects. One project has
been completed under this policy; in 1994-95 the 48 units (4 12-unit buildings) at New Hope Apartments
were renovated.
BACKGROUND
This request comes from the new owner of the fourplex property located at 8113 Bass Lake Road. The
building was previously owned by David Espeland. The building was constructed in 1958 and has a
market value of $136,000 (land $26,000/building $110,000). The building has a brick exterior, but is in
need of substantial repairs, including roof and window replacement, rain gutters, exterior doors, drain
tile, a boiler and general interior upgrading. The parking area needs resurfacing, additional landscaping
is needed and no garages are available on the site. The owner has estimated the project cost at
$15,000, however, staff estimate it will be at least twice that amount. There is a twin fourplex building
located adjacent to this building (8109 Bass Lake Road) that is under separate ownership. Both
properties are located on the south side of Bass Lake Road, just west of Lyndale Garden Center, and
have a shared access off of Bass Lake Road.
(cont'd.)
MOTION BY SECOND BY
- i /- /
RFA-O01
Request for Action Page 2 5-10-99
These properties have been designated in the Comprehensive Plan for either redevelopment or
substantial rehabilitation. Staff is pleased that the new owner wants to cooperate with the City on
potential improvements to the property. Staff is requesting direction from the EDA as to whether or not it
is interested in pursuing a rehabilitation project at this site in cooperation with the new owner. If the EDA
determines to proceed, staff would recommend taking the following steps:
1. Staff meet with property owner to determine what improvements would be included in the project and
get firm cost estimates.
2. Approach the owner of the adjacent building to see if they would participate in the project.
3. Have the City's financial consultant review the owners financial records (at the owner's expense) to
determine if they have the capability to repay the loan.
Once these steps were completed, staff would come back to the EDA with a complete project overview
and request direction to proceed with the necessary loan documents.
Attachments: Correspondence from Owner
Site Maps
Comp Plan Excerpts
Rehab Loan Guidelines
Steven A. Martinetti
8113 Bass Lake Road, Apt. 2
New Hope, MN 55128
April 24, 1999
Mr. Kirk McDonald
Director of Community Development
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Dear Mr. McDonald,
I am the owner of a fourplex apartment building located at 8113 Bass Lake Road in New
Hope. You may already be familiar with this property (the eyesore it is). I plan on
making significant improvements and want to make it among the best rental properties in
New Hope.
Among the improvements will be a new roof, rain gutters, windows, exterior doors, and
paint inside and out. In addition, the lower apartments will likely need to be drain tiled (I
am currently attempting to correct the grade, but if this is not successful in stopping the
water problem, drain tile is the next step). Finally, the parking area will need to be
resurfaced and the area relandscaped.
While I am anxious to complete these improvements, my funds are quite limited. I am
very interested in any financial assistance the City of New Hope may have available. I
am having the roof and windows estimated, and will forward these as you request. I
(roughly) estimate the entire project at somewhere near fifteen thousand dollars.
I appreciate your help and look forward to hearing fi.om you soon. You may call me at
my daytime (work) phone, (612) 348-2156, or you may leave a message at (651) 777-
7490.
Thanks again,
Steve Martinetti
Owner / Resident Manager
2.5
910.3
901.8
X ~
': ..... ~ !,'iii"l~Ci~", ~i~ ..... ~-"~' ..... i .... F:"'~
" ) / : '~' I ; ' - [ * ' '
... . ! , = ~ : ,~, , ~ ~,~ ~ .~
-'-.~.. . ~ ,: ~-.-?= ~( ....... ,??, ......... ,. ....... , i ............ . :, ....... . .... .. .....
'-~ ... -~
~.-~---~.. ,,,
. ~ ~. ~. : ......
- ~-" GOLF : "
COURSE
,, MIl ' ,
~ ""-~' ~' ST. THERESE
.... "; ~ NURSING
"~ : ..- HOME ~ , ~ ~_.
..... .;..
..... I r ~ ~ '
i
-,- .." 81~
~'~ ~ ~ ............ .... .. ~ ·
~Z~ ~ ~1 ~ ; ' ~-.., ,
· , '. O, .............................. ; , ;__.~
~'= .... ........... -- .... '~' '~ -. ............ .... .~-:- , ~ "" '~ '.- .,...,"'"".... ....... j' ii~
, ~I ~ ~ ~ ~ ~ "~0 ~10 '
, . - IZ : '
~: ~ ~ ~te ;~ ......... ; .... g .... ; .... ~.: '-~.. '"~ , i ~:.
iA. ~ ...............
O, -- ~ ;~: :, '""-. '"'" '
~ '~'1
4~
....................... ............... ~ ............................
' ....
:
J~ HIGH SCHOOL i , .............
;reek) ;~ ofl~ L~ke goc~ ~
~on West broadway street and
streC.~cape (multi-jurisdictional
~n o¢6ol£Cour~e Club
~ of' medium and high
site density residential area /
ue / i redevelopment sites
rtunities redevelopment sites
~e / Mss Lake
intersection realignment
~section desi~ -- vacant Ia'rs
mi-trucks -- Medium density redevelopmen'~
/acant (Pond Place developme--
Bound ~ opportunities)
I
~illty issues --Industrial redevelopment site
'tin,i. (demolish existing building)
expansion / cooperat'~e
rearrangement with City
'~' 5ime Park parkin~i and
,~ing tt~rnaround
'on ~ gle family r~elopment crec
-erse¢ion ,. ~, ~ Commerdal mdcel~ment
~ ~ ~ 42nd Avenue, ~t~ and 45th
--Medium densi~ redevelopment
oppo~uni~ ~win Home~)
__ In place indu~ial issues
,.~" Drainage issues
I ~
Cornrnunity Perspectives
· The industrial park is nearly fully developed. Future industrial growth will consist
of in-place expansion and site redevelopment.
· The appearance of outdoor storage areas within the industrial park is an issue.'
· Intersection at 49th and Boone is in need of improvement to accommodate the
turning radius of semi-trucks and trailers.
District 6
District 6 contains a variety of housing types from single familY to very high density. For
the most part, the high density housing in District 6 is very well maintained. Issues related
to District 6'include:
District 6 Issues
c FoOUr-plexes along Bass Lake Road are in bad condition. These sites should be-~'''',,
nsidered for redevelopment.
· Single family homes around Begin Park are on small lots and are in poor condition.
City staff has identified this area as a redevelopment area.
City of New Hope Comprehensive Plan Update
Planning Tactics
30
Goal 3: Promote ~multiple family housing altematives as an attrac[Ne life cycle
housing option.
Policies:
A. 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.
B. Adhere to the highest community design and construction standards for new
construction and redevelopment projects.
company medium and high density development with adequate access~-~ ...... ~.~
enities such as garages, parking, open space, landscaping, and recreational
cilities to insure a safe, functional, and.desirable living environment. ~"'
D. Consider mixed land uses as an alternative land use option in planning and
redevelopment of obsolete commercial or industrial sites.
E. Encourage neighborliness through block clubs, block parties or neighborhood
associations.
COMMERCIAL GOALS
Goal 1: Maintain and improve New Hope's commercial areas as vital retail and
service locations.
Policies:
A. Work with local business people to gain an understanding of the changing needs
of the business environment.
B. Promote a full and broad range of office, service, retailing, and entertainment uses
within the commercial areas of New Hope.
C. Attract new businesses to New Hope that are complementary to existing businesses
and will contribute to the customer attraction and business interchange of the local
commercial areas.
D. Promote the redevelopment and expansion of existing businesses within the City
to obtain a higher level of sales and business attraction.
B. Aggressively continue housing redevelopment programs throughout the City.
C. Encourage the private redevelopment of substandard, obsolete or blighted
properties. Public assistance may be applicable where the redevelopment is
consistent with the goals of the New Hope Comprehensive Plan and within the
financial capabilities of the City.
stigate opportunities for redevelopment or deteriorating
multipl-~e ~
renewal
of
ly sites.
E. Redevelop select, commercial/industrial properties which display deteriorated
building conditions, obsolete site design, incompatible land use arrangements and
high vacancy levels.
Goal 4: A cohesive land use pattern which ensures compatibility and strong
functional relationships among activities is to be implemented.
Policies:
A. Maintain and strengthen the character of individual neighborhoods.
B. Prevent over-intensification of land use development, that is, development which
is not accompanied by a sufficient level of supportive services and facilities
(utilities, parking, access, etc.).
C. Investigate remedies to correct or eliminate existing land use compatibility
problems.
D. Examine requested land use changes in relation to adjoining land uses, site
accessibility, utility availability, and consistency with the City's Comprehensive Plan
and policies.
E. 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.
City of New Hope
Apartment Loan Program
EDA Resolution NO. 93-13
Purpose
In September of 1993, the New Hope Economic Development Authority established a
loan program directed at maintaining multi-family rental housing. The program appeals
to the City's over 3,839 multiple rental units and focuses on three fundamental areas.
First, it assists owners in obtaining necessary capital for property rehabilitation and
upkeep. Secondly, it provides safe and descent housing opportunities at affordable
prices for residents now and into the future. Lastly, by targeting public resources in
areas of greatest need the program reverses property deterioration; thereby improving
overall property values and enhancing public safety within the community..
Policy Guidelines
1. In view of limited public financial resources, the program provides minimal
assistance to the greatest number of projects, with foremost attention to those
properties in the greatest need. Basic need improvements such as: roof
replacement, wiring and heating or other mechanical repairs carry a higher funding
priority.
2. Loans shall remain the preferred financing vehicle as opposed to grants or equity
investments. A 50/50 matching of funds is a normal requirement for eligible
projects.
3. No funding is provided which, directly or indirectly, is used for fees by the owner or
related parties (including construction management fees, developer fees, use of
"contingency funds," fee sharing, etc.)
4. At least two bona fide bids, from non-related parties, are required for each item that
is a part of an overall program of rehabilitation.
5. No funds are provided to address defaulted mortgages or to bring taxes current.
6. In cases involving substantial financial stress, appropriate participation by the
lender and equity owner is required for City investment. Participation may take the
following forms: debt forgiveness, additional equity investment, interest rate
reduction, loan term extension, payment deferrals, management fee reduction,
reduced cash flow distribution, or other good faith efforts on behalf of the leader
and property owner.
7. Public funds will only be provided in those instances in which they are essential to
rehabilitation of the project. Public funds will not be provided when the primary
result of that provision would be to merely raise the profitability of a building.
8. Public funds will not substitute for private funding that may reasonably be raised in
the private market.
9. Each financial assistance agreement will contain an accelerated repayment
provision in the event of property sale, or other significant changes in
circumstances.
10. Funds will not be provided to allow the owner to displace moderate income
residents and attract higher income tenants. EDA rehabilitation funds may not but
utilized in such a way that relocation statues and payments are triggered.
11. Funds will not be provided for projects that would result in lower property tax
payments, unless such projects meet other City objectives.
12. No funding will be considered for approval without prior objective financial analysis
of the project, along with an independent recommendation as to the amount and
type of proposed funding.
Additional Information
For additional information or clarification on this program contact the following
individuals:
Kirk McDonald
Director of Community Development
City of New Hope
(612) 531-5119
Susan Henry
Community Development Specialist
City of New Hope
(612) 531-5137
G: planning/housingJaptprg