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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.