062804 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes June 28, 2004
Regular Meeting City Hall
CALL TO ORDER
President Collier called the meeting of the Economic Development Authority to
order at 8:43 p.m.
ROLL CALL
Present: Don Collier, President
Doug Andersen, Commissioner
Sharon Cassen, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
APPROVE MINUTES
Motion was made by Commissioner Andersen, seconded by Commissioner
to approve the Regular Meeting Minutes of June 14, 2004.
Sommer, All present
voted in favor. Motion carried.
IMP. PROJECT 723 President Collier introduced for discussion Item 4, Resolution authorizing mortgage
Item 4 to New Hope Alano Group, Inc. for property at 7550 Bass Lake Road (A.C. Carlson
building) (improvement project no. 723).
Mr. Steve Sondrall, City Attorney, stated the resolution will approve a loan to the
New Hope Alano Group, Inc. to facilitate the purchase of the former AC Carlson
building at 7550 Bass Lake Road. He explained that the reason the item is before
the EDA is because the EDA acquired the Alano property as part of the Ryland
Homes development resulting in their displacement. He stated AC Carlson is
constructing a new facility and Alano is interested in purchasing the Bass Lake
Road property. He reviewed the financial aspects of the $175,000 loan. Mr. Sondrall
reported on the benefit to the city by providing the loan. He stated the loan period is
proposed to be amortized at 30 years with a balloon payment after 15 years. The
interest rate would be the same rate as the city pays with a 4% penalty for late
payments.
Mr. Fred Boyes, New Hope Alano, was recognized. He reported that originally
Alano requested a loan for $150,000. The need for the additional funding is due to
parking lot costs and building remodeling costs. He agreed to the 30-year schedule
with a balloon payment after 15 years. He reported on Alano’s intent to refinance
after 15 years.
Mr. Donahue stated the interest is based on the rate the city would pay for the
bonds.
Commissioner Sommer commended AC Carlson for selling the property for
approximately $100,000 less than its value.
Mr. Donahue inquired whether Alano would be willing to periodically put a city-
related item on their sign. Mr. Boyes expressed uncertainty as to whether the sign
will remain or not. He stated the membership will decide soon.
EDA RESOLUTION Commissioner Cassen introduced the following resolution and moved its adoption
04-23 “RESOLUTION AUTHORIZING MORTGAGE TO NEW HOPE ALANO
Item 4 GROUP, INC. FOR PROPERTY AT 7550 BASS LAKE ROAD (A.C.
EDA Meeting June 28, 2004
Page 1
CARLSON BUILDING) (IMPROVEMENT PROJECT NO. 723).”
The motion
for the adoption of the foregoing resolution was seconded by Commissioner Gwin-
Lenth, and upon vote being taken thereon, the following voted in favor thereof:
Collier, Andersen, Cassen, Gwin-Lenth, Sommer, 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.
IMP. PROJECT 772 President Collier introduced for discussion Item 5, Resolution approving purchase
th
Item 5 agreement for 9101 36 Avenue North (improvement project no. 772).
Mr. Donahue, City Manager, stated the purchase agreement has been prepared per
the EDA’s direction on May 24. It was noted that the bank may have another offer
pending. He stated the city’s objective is to eliminate a blighted property and that
can be accomplished regardless of whether the property is purchased by the city or
another party.
City Attorney Sondrall recommended the EDA adopt the resolution approving the
purchase agreement in the event the transaction with the other buyer does not
materialize.
Discussion ensued regarding the property’s condition. Mr. Sondrall stated the city
will be aggressive on getting the property code compliant. He stated it may be
necessary to demolish the structure.
RESOLUTION 04-24 Commissioner Gwin-Lenth introduced the following resolution and moved its
“RESOLUTIONAPPROVING PURCHASEAGREEMENT FOR
Item 5 adoption
TH
9101 36 AVENUE NORTH (IMPROVEMENT PROJECT NO. 772).”
The
motion for the adoption of the foregoing resolution was seconded by Commissioner
Sommer, and upon vote being taken thereon, the following voted in favor thereof:
Collier, Andersen, Cassen, Gwin-Lenth, Sommer, 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.
5620 WINNETKA President Collier introduced Item 6, Resolution authorizing execution and delivery
Item 6of a contract for private redevelopment by and between the New Hope Economic
Development Authority and Foundation Land Development, LLC for the
redevelopment of the former Frank’s Nursery property at 5620 Winnetka Avenue
North (improvement project no. 733).
President Collier reported that this item is being removed from the agenda at the
developer’s request. It is likely to be presented to the EDA at the July meeting.
ADJOURNMENT Motion was made by Commissioner Andersen, seconded by Commissioner
to adjourn the meeting
Sommer, . All present voted in favor. Motion carried. The
New Hope EDA adjourned at 9:16 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting June 28, 2004
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