102797 EDA Official File Copy
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #11 October 27, 1997
Agenda #11
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Coil/er
Commissioner Pa t L a Vine Norb y
Commissioner Gerald Otten
1. Call to Order
2. Roll Call
3. Approval of Minutes of October 13, 1997
4. Presentation by Project for Pride in Living, Inc. Regarding Concept
Proposal for Redevelopment of Multi-family Dwelling at 7302-7316 Bass
Lake Road
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approvec[ EDA Minutes October 13, 1997
Meeting #10
CALL TO ORDER President Enck called the meeting of the Economic Development Authority
to order at 8:59 p.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby, Otten
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Olson
APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner
Collier, to approve the EDA minutes of September 22, 1997. Voting in
favor: All. Motion carried.
IMP. PROJECT 609 President Enck introduced for discussion Item 4, Resolution Approving
Item 4 Proposal by the McNulty Group, Ltd., d/b/a Planet Publications, Inc. to
Produce 1997-98 City of New Hope Resident Guide/Business Directory
(Improvement Project No. 609).
Mr. Kirk McDonald, Management Assistant/Community Development
Coordinator, provided a response to several of the issues raised by the
EDA at its meeting of September 22 including telemarketer fee,
distribution, map quote, art direction for map, engineering consultant's fee
for map, cover design, City of Plymouth's experience, payment terms,
copy editing fee, and ad rates.
Ms. Susan McNulty, Planet Publications, Inc., was recognized. She
explained her companies responsibilities related to publication of the
resident guide.
Commissioner Norby departed the EDA Meeting.
Mr. Jim Brinkman, sub-committee task force member, expressed positive
comments on the proposed product.
EDA RESOLUTION Commissioner Cassen introduced the following resolution and moved its
97-08 adoption: "RESOLUTION APPROVING PROPOSAL BY THE MCNULTY
Item 4 GROUP, LTD. D/B/A PLANET PUBLICATIONS, INC. TO PRODUCE 1997-
98 CITY OF NEW HOPE RESIDENT GUIDE/BUSINESS DIRECTORY
(IMPROVEMENT PROJECT NO. 609)." 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, Otten; and the following voted against the same:; None;
Abstained: None; Absent: Norby; 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 Cassen, seconded by Commissioner
Collier, to adjourn the meeting. All present voted in favor. The New
Hope EDA adjourned at 9:20 p.m.
New Hope EDA October 13, 1997
Page 1
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA October 13, 1997
Page 2
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda ED~genda Section
City Manager
10-27-97
Kirk McDonald Item No.
Management Assistant
By: 4
IN LIVING, INC. REGARDING CONCEPT PROPOSAL
FOR REDEVELOPMENT OF MU DWELLINGS AT 7302-7316 BASS LAKE ROAD
Project for Pride in Living, Inc. (PPL) will be making a presentation to the EDA regarding a concept
proposal for the redevelopment of the multi-family dwellings at 7302-7316 Bass Lake Road (see
enclosed report).
PPL is one of the developers selected by the Minneapolis Public Housing Authority for the
implementation of the Metropolitan Housing Opportunities Program (MHOP) in the suburbs. MHOP is a
rental housing program that was created as a result of a legal settlement, the Hollman Consent Decree.
As one of the defendants in the lawsuit, the Minneapolis Public Housing Authority (MPHA) agreed to
expand affordable housing opportunities for lower income residents in areas where there has
traditionally not been a supply of public housing, in both the City of Minneapolis and in suburban
locations. The MPHA will develop and operate the Hollman replacement units in the City, but a new kind
of approach was needed for the MPHA to provide Hollman funds for the development of public housing
in the suburbs, MHOP is this tool. MHOP-funded new construction homes can be built anywhere outside
Minneapolis and St. Paul, but within the MUSA (metropolitan services) line. Rehabilitation of existing
homes with MHOP can be done anywhere in the seven-county area, outside of Minneapolis and St.
Paul. Sites are selected which meet public housing site and neighborhood standards, and the MPHA
strongly encourages the development of MHOP units in places that are accessible to jobs,
transportation, and other amenities important to families with Children.
PPL approached the City this spring and inquired if the City might be interested in such a redevelopment
and requested that the City identify potential redevelopment sites. City staff provided a list of sites and
identified the Bass Lake Road properties as one of the top redevelopment priorities for the City. PPL
reviewed the listi, analyzed the sites and selected the Bass Lake Road properties as the site with the
best financial potential for redevelopment. Since that time, they have met with the City Manager and
staff on several occasions to prepare a concept for potential redevelopment.
(cont'd.)
MOTION BY SECOND BY
Review: Administration: Finance:
RFA-O01
Request for Action Page 2 10-27-97
There are seven buildings being considered for redevelopment with four apartments in each unit (two
up/two down) at 7302173041730617308173101731217316 Bass Lake Road, also known as Park Square
Apartments. All are two-bedroom apartments and there are no garages at the complex. Most of the
buildings are under separate ownership. These seven buildings are the source of a number of police
calls to the City and complaints have been received from surrounding homes and businesses. The
eighth building on the site, 7314 Bass Lake Road, is the Breckenridge Group Home, which is not the
source of complaints or problems. City staff indicated to PPL that the City would probably welcome a
partnership that provided for either substantial rehabilitation or demolition/redevelopment on the site.
The site is located on the north side of Bass Lake Road between Pennsylvania Avenue and Nevada
Avenue. The site is accessible only through an alley off of Bass Lake Road which runs between two
commercial properties. The property is bordered on the east and west sides by Crystal single family
homes. Adjacent to and north of the site is School District 281 property with Thorson Resource Center,
also in Crystal. Directly adjacent to the site on the north is a vacant piece of property owned by District
281 located in New Hope, but part of the Thorson Resource Center complex. This concept proposal has
been reviewed with representatives of both the City of Crystal and District 281.
PPL is proposing to renovate seven of the eight brick four-plexes into side-by-side duplexes and build
twenty three-bedroom townhouses on the existing site. The two commercial buildings on Bass Lake
Road would be replaced by one row of twelve townhouses. Eight additional townhouses would be built
on the small piece of property located in New Hope south of the resource center, which would be
acquired from District 281. The existing 32 two-bedroom apartments in eight four-plex buildings would be
redeveloped into 14 four-bedroom side-by-side units in seven of the four-plex buildings and 20 three-
bedroom townhomes with tuck-under garages and off-street parking for each unit. Twenty-two units
would have market rate rents between $700 and $850. Twelve units would have rents subsidized for
lower income families (those earning less than $26,000 per year). Eight of the affordable units need to
be offered first to residents on the Minneapolis waiting list; the other four (and any not accepted by
people on the first list) would be for New Hope residents. PPL would provide an on-site management
office with a full-time staff. All residents (market rate and affordable) would be carefully screened: each
must have a good rental history, adequate income to afford the rent and no criminal background.
Renters at the time PPL purchases the property will receive assistance in finding a new place to live and
help with the expenses of moving.
The total cost of this redevelopment is approximately $5 million. Financing is proposed to be a
combination of approximately $1.5 million in an equity investment, a first mortgage and a grant from the
Minnesota Housing Finance Agency, an investment from the City of New Hope and a loan from the
Family Housing Fund. The twelve affordable units are paid for by the Metropolitan Housing Opportunities
Program, which was created to increase the supply of affordable rental housing outside the center cities.
The property is located in an area eligible for TIF expenditures or PPL may propose the creation of a
new TIF District.
PPL indicates that this development provides high quality, well designed townhomes which will be well
maintained by an owner with a long-term commitment to the community. This creates more value and
more stability than the current rental situation. From Bass Lake Road the new townhouses will present a
welcoming appearance to the street while orienting the development to the interior of the block.
The proposed timeline for the project is as follows:
Finish purchase of the property ............................................... June 1, 1998
Start rehabilitation and construction ........................................ June 15, 1998
New residents move in ....................................... November-December 1998
Staff request that the EDA consider the concept and provide direction 'to staff as to whether this
redevelopment is something the EDA is interested in pursuing.