Loading...
080904 EDA CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes August 9, 2004 Regular Meeting City Hall CALL TO ORDER President Collier called the meeting of the Economic Development Authority to order at 8:48 p.m. ROLL CALL Present: Don Collier, President Sharon Cassen, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner Absent: Doug Andersen, Commissioner APPROVE MINUTES Motion was made by Commissioner Cassen, seconded by Commissioner Gwin-Lenth, to approve the Regular Meeting Minutes of July 26, 2004. Voting in favor: Collier, Cassen, Gwin-Lenth, Sommer; Voting against: None; Absent: Anderson; Abstained: None. Motion carried. IMP. PROJECT 770 President Collier introduced for discussion Item 4, Motion authorizing staff Item 4 to proceed with the burial of overhead utilities on the east side of Winnetka Avenue between 53 Avenue North and the north side of Bass Lake Road rd (improvement project no. 770). Ms. Amy Baldwin, community development assistant, stated staff is requesting that the EDA approve a motion authorizing staff to proceed with the burial of overhead utility lines on the east side of Winnetka Avenue between 53 Avenue North and the north side of Bass Lake Road. She rd stated Xcel Energy’s estimate is $100,624 which is nearly $50,000 less than the city’s original estimate of $150,000. The project will be completed in conjunction with the installation of the new sidewalk around the perimeter of the Winnetka Green project. Discussion ensued regarding the utilization of tax increment funding rather than a surcharge. Mr. Dan Donahue, city manager, explained that a surcharge could not be limited to the project area, therefore, rather than a city-wide surcharge, staff recommends the use of TIF funds. MOTION Motion was made by Commissioner Gwin-Lenth, seconded by Item 4 Commissioner Sommer, to authorize staff to proceed with the burial of overhead utilities on the east side of Winnetka Avenue between 53 rd Avenue North and the north side of Bass Lake Road (improvement project EDA Meeting August 9, 2004 Page 1 no. 770). Voting in favor: Collier, Cassen, Gwin-Lenth, Sommer; Voting against: None; Absent: Anderson; Abstained: None. Motion carried. IMP. PROJECT 751 President Collier introduced for discussion Item 5, Update on Winnetka Item 5 Green phase III expansion and motion authorizing staff to proceed with appraisals and relocation estimates on eight properties located within the phase III expansion area (improvement project no. 751). Mr. Kirk McDonald, director of community development, explained his desire to update the EDA regarding the discussions with the eight property owners impacted by the proposed phase III expansion. He stated staff is coordinating individual meetings with the eight property owners. Six of the eight property owners are in favor of the project and two property owners would reluctantly sell. He stated during the meetings he covered the same information (asked whether the property owner would sell for an agreed upon price, notified property owner of relocation benefits, answered any questions, and discussed timing and the next steps of the process). At this time, staff is requesting authorization to proceed with appraisals and relocation estimates for the eight properties. He explained staff’s intent to: 1) coordinate with Ryland on revised plans; 2) conduct a neighborhood meeting about the expansion of the project; 3) coordinate with Krass Monroe and Ryland on amended redevelopment contract and the TIF District modification; and 4) coordinate on planning steps necessary to amend PUD and plat. Mr. McDonald noted that Ryland would like an answer from the city by the end of September as Phase II would be impacted by Phase III. President Collier cautioned against making a commitment for Phase III prior to approval of a concept plan. Mr. Steve Sondrall, city attorney, noted the EDA is not entering a contractual obligation by obtaining the appraisals. He noted it would be beneficial to determine the appraised values in order to start the negotiation process. He noted the appraisal information would be shared with the property owner, but no offer would be extended until after an agreement is reached with the developer. President Collier expressed concerns regarding Phase III without answers regarding the plan, traffic, and neighborhood buffers. Mr. Donahue, city manager, suggested authorizing the appraisals with the understanding that the appraisal process would not be initiated until after the city has selected a proposed plan and process. Staff commented that the neighborhood meeting is scheduled for August 25. EDA Meeting August 9, 2004 Page 2 Commissioner Sommer expressed reluctance of incurring expenses for appraisals until a plan is agreed upon and shared with the neighborhood. He also pointed out that the term sheet included specific timelines. Commissioner Gwin-Lenth pointed out that staff has met the property owners. She expressed understanding of her colleague’s discomfort of proceeding without a formal plan but suggested a parallel track as the appraisals are the next step of the process. Discussion ensued regarding the term sheet that was approved on July 26 to provide direction and approximate timelines. Mr. Sondrall confirmed that the term sheet included conveyance of property east of Sumter Avenue to the developer by May 1, 2005, and the property west of Sumter Avenue by July 1, 2005. He stated the units proposed on the term sheet can be changed. For financial analysis purposes, the term sheet included 42 proposed units. He reiterated that the term sheet is non-binding. Commissioner Cassen commented that the term sheet is direction to staff and is not in final form. She supported authorization of the appraisals. President Collier opened the floor for comments. Mr. Andy Hoffe, 4632 Flag Avenue North, was recognized. He questioned the costs of Phase III and how the financing would differ from Phases I and II. Mr. Donahue stated the costs for Phase III are not known but the main difference in the financing is that Ryland will advance the city for all upfront costs so the risks to the city are minimized. He noted the project would still be part of the tax increment financing district. Mr. Bob Sable, 5242 Quebec Avenue North, was recognized. He stated he served on the Livable Communities Task Force when the city gathered community input for the initial project. He recommended a similar process be followed for Phase III. He commented that the density will generate traffic problems and the character of the single family neighborhood is deteriorating. President Collier noted that a neighborhood meeting is planned for August 25. Mr. Keith Pahl, 5432 Quebec Avenue North, was recognized. He stated he has not heard of one neighbor who is in favor of the project. He commented that the residents are being forced out of their homes. He objected to the use of Ryland Homes as they are not a Minnesota based developer. Commissioner Gwin-Lenth pointed out that the neighborhood is open to considering the project. President Collier interjected that a plan is not in EDA Meeting August 9, 2004 Page 3 place at this time. Mr. John Westphall, 5437 Quebec Avenue North, was recognized. He stated he lives by Elm Grove Park and has experienced sewage entering his basement. He expressed concern regarding the increased population and potential for infrastructure problems. Mr. Vince VanderTop, assistant city engineer, explained that the city has reviewed the sanitary sewer in Phases I and II and the issue that creates the sewer backup is not related to the additional homes. He stated inflow and infiltration (improper sump pump discharge and storm water runoff) contributes to the problem. He suggested installation of a shut off valve if the problem at Mr. Westphall’s home persists. Ms. Johnelle Opem, 2733 Zealand Avenue North, was recognized. She questioned the amount of taxes that would be paid to the general fund. Mr. Dan Donahue, city manager, stated the pre-development values will continue to be paid to the general fund. The value of the new development will continually increase and the additional taxes will be used to pay off the bonds. Mr. Mike Drenth, 7616 55 Avenue North, was recognized. He pointed out th that proceeding with phase III will benefit the City of New Hope. He questioned where these residents were when the initial phases were constructed. He commented that the EDA needs to decide what is best for New Hope. Mr. Donahue stated the total cost of the eight appraisals is less than $4,000. A motion was made by Commissioner Gwin-Lenth authorizing the city manager to proceed with the appraisals after consensus of the EDA on design concepts. The EDA discussed postponing action for two weeks or taking action at the work session. Councilmember Gwin-Lenth later withdrew her motion. No vote was taken. Commissioner Gwin-Lenth urged the EDA to make a decision early enough to allow sufficient time to resolve possible design questions. President Collier indicated that a work session is planned tonight upon adjournment of the EDA. The purpose of the work session is to discuss the Winnetka Green phase III expansion proposals. DEVELOPMENT President Collier introduced Item 6, Discussion regarding concept PROPOSAL development proposal by Ryland Homes for city-owned property north of Item 6 C.P. Railroad; motion authorizing appraisal of property. Discussion on Item 6 was postponed until the September 13 meeting. EDA Meeting August 9, 2004 Page 4 OTHER BUSINESS Mr. Andy Hoffe, 4632 Flag Avenue North, was recognized. He asked a procedural question regarding whether public input would be allowed at the work session. President Collier clarified that the standard practice of the council is to prohibit public input at its work sessions. Mr. Steve Sondrall, city attorney, pointed out that a work session is a type of a council meeting. He stated the city council is not required to take citizen input on any item other than a public hearing. The chair of the meeting can permit public input on other items, but it is not required. ADJOURNMENT Motion was made by Commissioner Cassen, seconded by Commissioner Sommer, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:57 p.m. Respectfully submitted, Valerie Leone City Clerk EDA Meeting August 9, 2004 Page 5