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082498 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #6 August 24, 1998 Agenda #6 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat La Vine Norby Commissioner Gerald Otten 1. Call to Order 2. Roll Call 3. Approval of Minutes of August 10, 1998 4. Motion Authorizing Staff to Obtain Appraisals of Regent Apartments at 7136 60th Avenue, 6017 Louisiana Avenue and 7124 Lombardy Lane (Improvement Project No. 645) 5. Resolution Approving Amendment No. 1 to the Initial Agreement Between Economic Development Authority in and for the City of New Hope and the Minneapolis Public Housing Authority (Improvement Project No. 614) 6. Adjournment · CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes August 10, 1998 Meeting #5 (Meeting held at Northwest Community Television Studio) CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 8:11 p.m. ROLL CALL Present: Enck, Cassen, Collier, Norby, Otten Staff Present: Sondrall, Hanson, Donahue, Leone, Henry, French, Clancy APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner Otten, to approve the EDA minutes of July 27, 1998. All present voted in favor. Motion carried. NEW HOPE President Enck introduced for discussion Item 4, Discussion Regarding Potential GARDEN APTS. Multi-family Rehabilitation Project at New Hope Garden Apartments, 5600-5620 Item 4 Zealand Avenue North and 8511 Bass Lake Road. Mr. Dan Donahue, City Manager, explained that the owners of the New Hope Garden Apartments have approached the City and are interested in the EDA Apartment Loan Program. The property consists of seven buildings with 11 units each. The estimated cost of the project for new windows and siding is $270,720, and the owners are requesting a no interest loan for 50% or$135,360. The EDA discussed the components of the City's Apartment Loan Program and the use of public funds. MOTION Motion was made by Commissioner Otten, seconded by Commissioner Collier, Item 4 directing staff to meet with the property owner and determine whether the project would qualify for the program. All present voted in favor. Motion carried. CARE BREAK President Enck introduced for discussion Item 5, Resolution Declaring Preliminary Item 5 Intent to Convey Property to Senior Outreach Services, Inc. for Adult Daycare Facility (Improvement Project No. 493). Mr. Donahue explained that based on the Council's direction from the June pt work session, staff has prepared a letter of intent between the City and CareBreak which declares the City's preliminary intent to proceed with the CareBreak project and convey the property at 5501 Boone Avenue North. The resolution is necessary to allow CareBreak the ability to commence negotiation proceedings with its financial institution. He emphasized that the letter of intent does not commit the City to actually participating in the project. Substantial discussion ensued regarding conveyance of the property, loss of real estate taxes, usage of tax increment funds, payments in lieu of property taxes, contract term, and concept plans. Commissioner Norby expressed her support for the project itself but not for donation of the land. Commissioner Collier was reluctant to vote on the resolution without more definitive New Hope EDA August 10, 1998 Page 1 plans from CareBreak. For the record, Mr. Donahue stated he has been a member of the nonprofit board for the past six years and is willing to step down if the EDA views this as a conflict of interest. Mr. David Perlman, 8708 Hopewood Lane, was recognized. He questioned whether there has been a demonstrated need for adult daycare. President Enck explained that CareBreak is presently in existence and is being forced out of its present location at NorthRidge. MOTION Motion was made by Commissioner Otten, seconded by Commissioner, Enck, to Item 5 amend the resolution requiring the annual payments in lieu of taxes as long as the operation is run by Senior Outreach Services or any other non-proffi organization exempt from real estate taxation. Voting in favor: Cassen, Collier, Enck, Otten; Against: Norby. Motion carried. RESOLUTION Commissioner Otten moved approval of the following resolution as amended: EDA 984)8 Item4 "RESOLUTION DECLARING PRELIMINARY INTENT TO CONVEY PROPERTY TO SENIOR OUTREACH SERVICES, INC. FOR ADULT DAYCARE FACILITY (IMPROVEMENT PROJECT NO. 493)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, .and uPOn vote being taken thereon, the following voted in favor thereof; Enck, Cassen, Otten; and the following voted against the same: Norby, Collier; 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 Comrni.qsioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:45 p.m. Respectfully submitted, Valerie Leone city Clerk New Hope EDA August ~0, 1998 Page 2 I EDA II I  REQUEST FOR ACTION Originating Depa~t~aent Approved for Agenda Agenda Section EDA Community Development 8-24.-!~ Item No. ByKirk McDonald MOTION AUTHoRIzING STAFF TO OBTAIN AdPRAISALS OF REGENT APARTMENTS AT 7136 60TM AVENUE, 6017 LOUISIANA AVENUE AND 7124 LOMBARDY LANE (IMPROVEMENT PROJECT NO. 645) At the July 27 EDA meeting, the EDA considered a request from the owners of Regent Apartments for financial assistance for the potential rehabilitation of the three building, 36-unit multi-family housing complex they own located at 7136 60~h Avenue, 6017 Louisiana Avenue, and 7124 Lombardy Lane. The improvements the owners discussed with staff and the City Attorney included replacement or repairs of windows, repair of parking lot, roof replacement, installation of perimeter drain tile systems, potential repair or replacement of inoperable outdoor swimming pool, some new appliances, interior work including hallway carpet and carpet replacement in some units, replacement of some kitchen cabinets and floors, repair of leaking air conditioning units, and adding landscaping to the property. The City Inspectors have confirmed that the buildings are in need of rehabilitation. Staff also discussed with the owners the possibility of adding garages to the site (there are currently seven garages for 36 units) and discussed improved property management. The total cost of the improvements without garages is estimated at $180,000 - $200,000. The cost of the garages is estimated at $225,000. The EDA responded that they would consider a loan, not a grant. The EDA also indicated a potential interest in acquiring the property for redevelopment purposes and told staff to convey that to the owners, which staff did. The EDA has targeted the entire 62"d Avenue and West Broadway area as an area for future upgrading and redevelopment. Subsequent to the EDA meeting, staff further discussed the potential rehab project with the owners and the EDA comments regarding redevelopment. The owners have submitted the attached letter stating that the Regent Properties' partners would be interested in exploring the possibility of selling the properties to the City at a fair selling price. They are inquiring if the EDA would be willing to proceed to have the properties appraised and to explore a purchase of the buildings from Regent Properties. (cont' d. ) MOTION BY ~ SECOND BY ~ Request for Action Page 2 8-24-98 Staff is requesting authorization to seek quotes from several firms for appraisals, select the Iow quote, and proceed with the appraisals. The buildings have a current market value as follows: 7136 60th Avenue $48,000 land / $216,000 building = $264,000 6017 Louisiana Avenue $48,000 land/$227,000 building = $275,000 7124 Lombardy Lane $48,000 land/$216,000 building = $264,000 Once the appraisals are completed, they will be presented to the EDA so that the EDA can direct staff how to proceed. The appraisals would be paid for with EDA or TIF funds. This property is located in an area where TIF funds can be spent that are generated from other districts. Staff recommends approval of a motion authorizing staff to obtain appraisals on the three Regent Apartment buildings. YOST & BA LL ATTORNEYS AT LAW August 19, 1998 A ProFessional Limited Liability Partnership Lawrence M. Baill Gerald B, Yost' Mr. Kirk McDonald Jeffrey M. Bai!It Director - Community Development Craig Z Dokken 4401 Xylon Avenue North Steven L.Theesfeld' David j'.Yarosh New Hope, MN' 55428 Catherine D. Owen Daniel W. Boengter Re: Regent Properties Buildings: 7124 Combardy Lane Brian Frenger 6017 Louisiana Avenue *Also adm~ed ,n W,sce .... 7136 60th Avenue Legal Assistants Dear Mr. McDonald: Ting L. Andresen Grace M. Davies Pursuant to our telephone conversation of this morning, this letter is to advise you and Jacqueline I. Pete ..... R.N the City that the Regent Properties' partners would be interested in exploring the G~nser L possibility of selling the above New Hope properties to the City at a fair selling price. Ph~,~,s ~. Harper Heather A Lang Selamawit Yohannes Kindly inquire of the City Council and advise the undersigned whether or not they would Christine A, Green be willing to proceed to have these properties appraised and to explore a purchase of the j. Matthew Be .... buildings from Regent Properties. Christine E Hart .... Thank you very much. ~I1~1c Suite 2350 erely, f,,. O~e Finlncial Plaza t 20 South Sixth Street Minneapolis, MN 55402 Telephone (612) 338-6000 '1' 'lL~pd;1.,~W Facsimile (612) 344-1689 I. 'tH \ i EDA RF~UEST FOR ACTION Originating Depaztment Approved for Agenda Agenda Section EDA Community Development 8-24-98 Item No. ByKirk McDonald ~ 5 RESOLUTION APPROVING AMENDMENT NO. 1 TO THE INITIAL AGREEMENT BETWEEN ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR CITY OF NEW HOPE AND THE MINNEAPOLIS PUBLIC HOUSING AUTHORITY (IMPROVEMENT PROJECT NO. 614) At the July 27 EDA meeting, the EDA approved the Initial Agreement with the Minneapolis Public Housing Authority for the PPL/Bass Lake Townhomes Project. The agreement requires the EDA to maintain and administer a waiting list for those applying for housing in both the incentive (4) and replacement MHOP (8) units for the project. Staff indicated to the EDA that the MPHA and the Metropolitan Council could and would assume this responsibility for the EDA and that agreements with both of these agencies would be forthcoming. Subsequent to the EDA meeting, the City Attorney and Community Development Director met with representatives from the MPHA, the Met Council and HUD on August 4. The purpose of the meeting was to further discuss the creation and maintenance of waiting lists and grievance procedures for the eight MHOP units and the four incentive units. It was agreed at the meeting that New Hope could delegate its responsibility under the Initial Agreement to maintain and administer waiting lists/grievance procedures to the Met Council because they are already performing these responsibilities for the Section 8 Program. The amendment to the agreement states that: 1. The MPHA shall administer the waiting list for the replace.merit MHOP units; and 2. The EDA, by agreement with the Metropolitan Council HRA, will administer the waiting list for the incentive units and administer the grievance procedure for all MHOP units. The Met Council has submitted a preliminary agreement regarding their responsibilities, which will be presented to the EDA for consideration in September. Staff recommends approval of the resolution which approves the amendment to the agreement and authorizes the President and Executive Director to execute the agreement. ' ! - RFA-OO ] NEW HOPE EDA RESOLUTION NO. 98- RESOLUTION APPROVING AMENDMENT NO 1 TO THE INITIAL AGREEMENT BETWEEN ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR CITY OF NEW HOPE AND THE MINNEAPOLIS PUBLIC HOUSING AUTHORITY WHEREAS, the New Hope EDA approved the Initial Agreement with the Minneapolis Public Housing Authority (hereafter MPHA) at its July 27, 1998 meeting for the PPL/Bass Lake Townhomes Project (Improvement Project 614),. and WHEREAS, the Initial Agreement requires the EDA to maintain and administer a waiting list for four Incentive Units and a grievance procedure, and WHEREAS, MPHA has agreed the Metropolitan Council may assume these responsibilities on behalf of the EDA, and WHEREAS, the Metropolitan Council has agreed it will assume the responsibilities for maintaining and administering the waiting list and grievance procedure for the four Incentive Units within the PPL/Bass Lake Townhomes Project Improvement (Project 614), and WHEREAS, a proposed Amendment establishing this arrangement and amending the Initial Agreement is attached to this resolution as Exhibit 1. Now, Therefore, Be It Resolved by the New Hope Economic Development Authority that Amendment No. 1 to the Initial Agreement attached hereto as Exhibit 1 is approved and that the President and Executive Director are authorized and directed to execute the agreement on behalf of the Economic Development Authority. Adopted by the New Hope Economic Developmem Authority, Hennepin County, Minnesota, this 24th day of August, 1998. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director APPR-AMD.EDA (283\CNH-RF_,SO) 2 SWA SO & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, S~. 201 BROO~ P~ ~SOTA 55443-1999 ~P~O~ (612) 424-8811 · ~F~ (612) 493-5193 GOP~ON L. WmLI~ G. SW~N ~ A. So~o~ August 19, 1998 MI~ R. L~LEUR M~ P. M~E~ B~ A. ~Y* c. ~v~ ~sos, Mr. Kirk McDo~ld New Hope Co~uniW Develop~nt Director 4401 Xylon Avenue No~ o~ co~s~ New Ho~, MN 55428 ~s Q. Bg~ Re: Amendment No. 1 to ~e MPHA ~itial Agreement Regarding MHOP Units Our File No. 99.112~ De~ ~rk: At your request, I ~ tr~s~tting ~is letter to you regard~g Amen~ent No. 1 to ~e Initi~ Agreement for ~e PPL/MHOP Housing ~oj~t. Please find enclosed a proposed Resolution approving ~e Amen~ent. As you ~o~, ~e Amendmem was generated by our Au~st 4, 1998 m~g wi~ representatives from ~e Mi~eapolis ~blic Housing Au~ori~, ~e Met Co~cil ~d HUD. ~e pu~ose of ~is meeting was to discuss ~e creation ~d ~inten~ of waiting lists ~d griev~ce pr~ures for ~e eight MHOP Units ~d four New Hope In~ntive Units at ~e proposed PPL Proj~t. It was agre~ at ~is meet~g ~at ~e New Ho~ EDA could delegate its responsibili~ under ~e initi~ Agr~nt to ~tain ~d ad~nister waiting lists ~d griev~ pr~ums to ~e Met Council in light of ~e fact the Met Co~cil is ~ready ~rfo~ng ~ese respomibilities for ~e Section 8 progr~. ~e Amen~ent provides ~e EDA wi~ ~e au~or~ation to delegate ~is responsibili~ to ~e Met Council. ~e Met Council will also ~ provid~g us wi~ ~ agr~mem ac~ting this responsibiliW, however ~ey have not yet provided us wi~ a wri~en propos~ in ~is reggd. Therefore, ~e enclos~ Resolution only au~or~es ~d approves Amendment No. 1 to ~e ~ti~ Agreement. It c~ ~ consider~ at ~e Au~st 24, 1998 EDA ~g. *Real Preperty Law Specialist Minnesotn Sm~ ~ Associat~n ~'Qualified ADR Neutral ' August 19, 1998 Page 2 Please contact me if you have any questions or comments regarding the Amendment or the enclosed Resolution. Very truly yours, Steven A. Sondrall JENSEN SWANSON & SONDRALL, P.A. SAS:cr Enclosure cc: Dan Donahue NH112-1.LTR (283\SAS) ,.1998 1E:41AM M0.631 p.E/~ AMENDMENT NO. ! TO TI:IE~ INITIAL AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE TI-I~ 'MINNEAPOLIS PUBLIC HOUSING AUTHORITY This Amendment made this day of ,1998 to that certain Initial Agreement between the Economic Development Authority in and for the City of New Hope (the "EDA') and the Minneapolis Public Housing Authority (the "MPHA"). WHE~AS, the EDA has agreed to maintain the waiting list for those applying for housing in both the incentive and replacement MHOP Units in the Bass Lake Road Townhomes development; and WHEREAS, the EDA now wishes to have the Metropolitan Council administer the waiting list for the incentive units and'administer the grievance procedure for all MHOP units; and WHEREAS, the Metropolitan Council has agreed to administer the waiting Iists for incentive units and administer the grievance procedure for all MHOP units in suburban developments upon request of thc local sponsoring agenoy. NOW, THEREFORE, it is agre~ by the parties hereto to amend the Initial Agreement as follows: 1. The MPHA shall administer the waiting list for the replacement MHOP units in the Bass Lake Road Town.homes development; and 2. The EDA, by agreement with the Metropolitan Council, will administer the waiting list for the incentive units and administer the grievance procedure for all MHOP units in the Bass Lake Road Townhomes development: IN WITNESS WHEREOF, the MPHA has caused.this Amendment to be duly executed in its name and behalf and its seal to be hereunto affixed and the City has caused this Amendment to be duly executed in its name and behalf on or as of thc date tint above written. EXHiBiT NO, ~ IN1TIAL- NEW Au~-I0-98 06:36am From-MPL$ PUBLIC HOUSiNG'AUTHORITY 612342140? T-042 P.01 1:-202 T MINNEAPOLIS PUBLIC HOUSING AUTHORITY FAX TRANSMISSION DATE: August 10, 1998 FROM: Dorothy .~acobs 1001 Washington Avenue North MPLS, MN 55401 Phone: 342-1215 FAX: 342-1407 e-mail: dj acobs(~lmplspha, org NUMBER OF PAGES, INCLUDING COVER SHI~.ET: 2 TO: Kirk Mel)oaald MESSAGE: Have emailed the atmehed to Sonadrail. Iftbere are no ehanges, go ahead and get approval If there are changes, let me know. Thanks.