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
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(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
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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
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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
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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
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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
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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
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