072604 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes July 26, 2004
Regular Meeting City Hall
CALL TO ORDER
President Collier called the meeting of the Economic Development
Authority to order at 10:43 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 Sommer, seconded by Commissioner
Andersen, to approve the Regular Meeting Minutes of June 28, 2004. All
present voted in favor. Motion carried.
IMP. PROJECT 764
President Collier introduced for discussion Item 4, Resolution approving
Item 4
purchase agreement and relocation benefits for 5537 Sumter Avenue North
(improvement project no. 764).
Mr. Kirk McDonald, director of community development, stated staff is
recommending a purchase price of $180,000. The property is located in the
Winnetka Green development area. TIF funds would be used for property
acquisition, relocation, and associated holding costs.
EDA RESOLUTION
Commissioner Cassen introduced the following resolution and moved its
04-25 adoption “RESOLUTION APPROVING PURCHASE AGREEMENT AND
Item 4 RELOCATION BENEFITS FOR 5537 SUMTER AVENUE NORTH
(IMPROVEMENT PROJECT NO. 764).” 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 762
President Collier introduced for discussion Item 5, Resolution approving
Item 5
purchase agreement and relocation benefits for 5540 Winnetka Avenue
North (improvement project no. 762).
Mr. Steve Sondrall, city attorney, recommended approving the purchase
price of $225,000. In addition, the city will be paying a differential payment
of $54,000 plus business relocation costs of $20,000.
EDA Meeting July 26, 2004
Page 1
EDA RESOLUTION
Commissioner Sommer introduced the following resolution and moved its
04-26 adoption “RESOLUTION APPROVING PURCHASE AGREEMENT AND
Item 5 RELOCATION BENEFITS FOR 5540 WINNETKA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 762).” The motion for the adoption of
the foregoing resolution was seconded by Commissioner Andersen, 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 733
President Collier introduced Item 6, Resolution authorizing execution and
Item 6
delivery of 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 (improvement project no. 733).
Mr. Kirk McDonald, director of community development, stated Armory
Development is requesting to transfer the redevelopment contract to a new
developer who will construct the same project as previously approved. The
new developer is Foundation Land Development, LLC. All previous terms
of the agreement remain unchanged.
EDA RESOLUTION
Commissioner Gwin-Lenth introduced the following resolution and moved
04-27 its adoption “RESOLUTION AUTHORIZING EXECUTION AND
Item 6 DELIVERY OF 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 (IMPROVEMENT PROJECT NO.
733).” 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, Gwin-Lenth,
Sommer, and the following voted against the same: None; Abstained: None;
Absent: Cassen; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive
director.
IMP. PROJECT 751
President Collier introduced for discussion Item 7, Resolution authorizing
Item 7
approval of a term sheet between the New Hope Economic Development
Authority and Ryland Homes for Phase III of the Winnetka Green
Redevelopment (improvement project no. 751).
Mr. Kirk McDonald, director of community development, stated Ryland
Homes presented a proposal for a Phase III expansion of the Winnetka
Green project to the city council at its June 21 work session. On June 28, the
council authorized staff to coordinate with Ryland Homes on the proposed
Phase III of the Winnetka Green redevelopment project.
EDA Meeting July 26, 2004
Page 2
He stated over the past month staff and consultants have been working with
Ryland Homes to develop a term sheet. The term sheet includes conveying
the six parcels east of Sumter Avenue to the developer by May 1, 2005, and
conveys the two parcels west of Sumter Avenue by July 1, 2005. If a
voluntary purchase agreement for a parcel can not be obtained, eminent
domain will be used for acquisition. The term sheet also indicates that
approximately 42 units of the same product type as approved in the original
plan be constructed in Phase III, with the exact number and type of units to
be determined upon completion of a stormwater analysis, survey, and
planning commission and council approval.
Mr. Jim Casserly and Ms. Gay Greiter of Krass Monroe were recognized.
Ms. Greiter explained that a term sheet is non binding for either party, and
it is used to draft a development agreement. She stated the term sheet helps
determine if the project is economically and financially feasible.
Discussion ensued whether a neighborhood meeting should have taken
place prior to preparation of a term sheet. The EDA also questioned the
feasibility of the project if there are more heritage condominiums and less
carriage townhomes.
Mr. Casserly pointed out that the term sheet is based on averages and there
is room for deviation. Mr. Casserly also noted that the financing of Phase III
would be different than Phases I and II in that all city costs would be
advanced by Ryland.
Mr. Donahue, city manager, stated in June a number of interested property
owners requested a prompt decision by the city. He also noted Phase II is
predicated upon Phase III and Ryland would like a decision from the city by
September.
The following persons addressed the EDA regarding various aspects of the
proposed Phase III development: John Eiden, 5427 Rhode Island (suggested
leaving houses on 55 Avenue to act as a buffer to the Ryland
th
development); Juanita Hoffe, 4632 Flag Avenue North (questioned the use
of tax increment financing); John Westphall, 5437 Quebec Avenue North
(inquired of the timing of the neighborhood meeting); Barb Drenth, 7616 55
th
Avenue North (expressed support for Phase III and offered her perception
of which neighbors may also be interested); and Anita Faue, 5307 Sumter
Avenue North (does not want to be forced to sell her property).
Mr. Sondrall recommended approval of the term sheet in order to start the
process even though the council may not be ready to approve Phase III. He
reiterated that the term sheet is a non-binding document.
EDA RESOLUTION
Commissioner Cassen introduced the following resolution and moved its
04-28 adoption “RESOLUTION AUTHORIZING APPROVAL OF A TERM
Item 7 SHEET BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY AND RYLAND HOMES FOR PHASE III OF THE
WINNETKA GREEN REDEVELOPMENT (IMPROVEMENT PROJECT
EDA Meeting July 26, 2004
Page 3
NO. 751).” 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, Cassen, Gwin-Lenth,
and the following voted against the same: Andersen, Sommer; 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.
RYLAND
President Collier introduced for discussion Item 8, Discussion regarding
DEVELOPMENT
concept development proposal by Ryland Homes for city-owned property
PROPOSAL
north of C.P. Railroad; motion authorizing appraisal of property.
Item 8
Due to the late hour, the EDA unanimously agreed to postpone discussion
of EDA Item 8 to the EDA meeting of August 9, 2004.
MOTION
Motion was made by Commissioner Cassen, seconded by Commissioner
Item 8 Sommer, to postpone discussion regarding the concept development
proposal by Ryland Homes for city-owned property north of C.P. Railroad
to the EDA meeting of August 9, 2004. All present voted in favor. Motion
carried.
ADJOURNMENT
Motion was made by Commissioner Sommer, seconded by Commissioner
Andersen, to adjourn the meeting. All present voted in favor. Motion
carried. The New Hope EDA adjourned at 11:42 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting July 26, 2004
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