091304 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes September 13, 2004
Regular Meeting City Hall
CALL TO ORDER
President Collier called the meeting of the Economic Development
Authority to order at 8:40 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
Gwin-Lenth, to approve the Regular Meeting Minutes of August 23, 2004.
Voting in favor: Collier, Andersen, Cassen, Gwin-Lenth. Voting against:
None; Absent: None. Abstained: Sommer. Motion carried.
IMP. PROJECT 751
President Collier introduced for discussion Item 4, Resolution authorizing
Item 4
negotiation of an option for certain property within the Winnetka East
Redevelopment (south portion of 7603 Bass Lake Road Extension)
(improvement project no. 751).
Kirk McDonald, community development director, stated that this
resolution would give two property owners an option to purchase the
‘bump out’ lot described in the Request for Action if Phase 3 does not go
forward. Mr. Steve Sondrall, city attorney, explained the contractual
obligations to convey property to Ryland Homes. Mr. McDonald added that
at the August 30 work session, council directed staff to work with the city
attorney on preparing a resolution to address the ‘bump out’ lot.
EDA RESOLUTION
Commissioner Cassen introduced the following resolution and moved its
2004-32 adoption “RESOLUTION AUTHORIZING NEGOTIATION OF AN
Item 4 OPTION FOR CERTAIN PROPERTY WITHIN THE WINNETKA EAST
REDEVELOPMENT (SOUTH PORTION OF 7603 BASS LAKE ROAD
EXTENSION) (IMPROVEMENT PROJECT NO. 751).” 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.
EDA Meeting September 13, 2004
Page 1
IMP. PROJECT 734
President Collier introduced for discussion Item 5, Discussion and update
Item 5
regarding concept plans for the proposed development of 4301-4317 Nevada
Avenue North (improvement project no. 734).
Mr. McDonald introduced Shawn Siders, community development
specialist.
Mr. Shawn Siders detailed the proposed 6-unit townhome development and
showed concept drawings of the site. Per the direction of the EDA, the
plans deviate slightly from what was originally proposed as two of the
proposed units are handicap accessible, rather than one. Staff is seeking
preliminary approval of the proposed concept so the owner of 4301 and
contract purchaser of 4317, Northwest Community Revitalization
Corporation (NCRC) can proceed with developing the necessary documents
to receive planning approval.
Mr. Siders illustrated drawings of the two proposed triplexes and future
plan. The plans meet the city’s scattered site housing program requirements
and would be owner-occupied. Construction would begin this winter with
completion in spring/summer 2005.
Commissioner Gwin-Lenth inquired as to the wide semi circle on the east
side of the plan. Mr. Gene Nicolleli, project architect, explained that it
represents a change in topography.
Commissioner Cassen asked if the complex is considered twinhome,
townhome, or triplex and if there will be an association. Ms. Kris Madson,
executive director of NCRC, responded that it is a townhome complex and
that a decision has not yet been made regarding an association. She
explained that an association is problematic with a small number of units
and they are looking into how the project may benefit from partnering with
another association. Commissioner Cassen stated her concern about the
common entrance, especially snow removal if there is not an association.
Commissioner Cassen continued that if there is no association perhaps the
units should front Nevada and be twinhomes with a series of use-in-
common driveways. She asked the reason why the units do not face
Nevada. Mr. Nicolleli answered that the goal was to be as efficient as
possible in construction costs and land use. Commissioner Cassen asked
about the status of the property at 4415 Nevada Avenue North to which Ms.
Madson responded that no decision has been made yet. NCRC is
considering the development at that property as a phase 2 acquisition and
development. Commissioner Cassen remarked that if there is a phase 2 with
additional townhomes, she would be more comfortable with the proposed
concept. Otherwise the current proposal is too problematic and may not
serve the best interest of the city. If there is no association and no additional
property, she would not be in favor of the proposed concept. She asked if
the project is financially feasible with five units instead of six. Ms. Madson
EDA Meeting September 13, 2004
Page 2
stated that five units may not be feasible. Commissioner Cassen questioned
why there were not more one-level not accessible units to which Mr.
Nicolleli responded that the proposed design is the most efficient use of the
land while accounting for site improvement costs. Commissioner Cassen
reiterated the need for more one-level homes in the city.
Commissioner Sommer stated he likes the layout of the land but shares the
concerns of Commissioner Cassen and agrees that it is too small for an
association to take care of all maintenance. Commissioner Sommer stated
that NCRC should consider an association that would only maintain the
lawn, plow snow, and remove garbage, leaving the owners responsible for
the exterior. Ms. Madson replied that NCRC is researching various
alternatives for the association and understands the importance of proper
maintenance.
President Collier inquired as to the selling price. Ms. Madson stated it will
be in the $155,000 to $165,000 range and will appraise higher. They have
gap financing available for lower income buyers.
Commissioner Cassen asked if a buyer could add amenities and was told
yes. She emphasized that the owner should be able to make choices.
IMP. PROJECT 776
President Collier introduced for discussion Item 6, Public Hearing –
Item 6
Resolution authorizing the transfer of real property (5501 Boone Avenue
North) (improvement project no. 776).
Mr. Kirk McDonald, community development director, explained that this
is a public hearing to consider approving the sale of the property located at
5501 Boone Avenue North to Project for Pride in Living, Inc. (PPL), for
$1.00. At its meeting March 23, 2004, the EDA approved a term sheet
between PPL and the city of New Hope. Total acquisition cost was
$376,764. The city used $100,000 in CDBG funding to assist in the original
acquisition of the site. The original EDA investment was $276,764.00. The
original EDA investment will be reimbursed through the tax increment
generated from the proposed $14.5 million development.
Mr. McDonald explained that Item 6 has two parts: the Public Hearing and
the resolution to transfer property to PPL. Item 7 considers the
development contract. This project has been discussed many times. As a
brief review, 5501 Boone Ave North was acquired by the city in 1993
through eminent domain. At that time, a project did not proceed. A
number of proposals for that property had been submitted; however, none
of those were finalized and the city-owned property remained vacant. In the
spring of 2003, PPL submitted a development proposal for the site
consisting of 70 housing units. Of these, 35 would be affordable rental units
and 35 would be market rate owner-occupied condominium units. At that
time the EDA directed the developer to consider adding additional market
rate, owner occupied condominium units so that the number of owner
EDA Meeting September 13, 2004
Page 3
occupied units is greater than the number of rental units. The developer
responded to this request and proposed the construction of 41 market rate,
owner occupied condominium units. The property is currently tax-exempt
and will be taxable once the property is transferred to PPL. Once
developed, the property will generate approximately $163,964 in annual tax
revenue. If the property were to be developed as either a commercial or
industrial project, it would generate approximately $90,000 in annual tax
revenue. A portion of the proceeds from the TIF district will be used to
reimburse the city for the original land acquisition cost, plus interest as well
as provide approximately $14,000 annually to assist the city with its
redevelopment programs in administration fees. Any inflationary increases
in market value will allow the TIF district to be decertified more quickly.
Mr. Shawn Siders, community development specialist, gave a short
presentation regarding the financial distinction between using the
development of this property as a residential use as proposed by PPL versus
an industrial/commercial use. The bottom line shows that residential use on
this site will generate more tax revenue over 25 years and it’s likely that the
city will decertify the TIF district in less than 25 years.
Commissioner Cassen thanked Mr. Siders for the comparison and stated
commercial/industrial on this site is less sensible in the long run.
Messrs. Steve Kramer and Chris Wilson from PPL stated that with this
approval, PPL will start construction this fall and have the apartments fully
leased by the end of 2005. They would move forward on the condos in
spring 2005, completing them in the spring of 2006.
Ms. Gay Greiter of Krass Monroe stated that the agreement adheres to the
term sheet approved earlier this year. They are contemplating conveyance
of land as soon as financing is in order for the apartments; the city is
providing a grant of $550,000 for the apartments and up to $650,000 for the
condos, to be provided when site improvements begin.
Ms. Johnelle Opem, 2733 Zealand Avenue North, was recognized. She
inquired about the certainty of getting funding for the condos and asked
what guarantees are in place to protect the city if the funding is not secured.
Ms. Greiter stated that the agreement stipulates that if funding is not
secured, the city would be able to take back the site, which would already
have ponding and grading completed.
Mr. Martin Opem, 2733 Zealand Avenue North, was recognized. He stated
that the financial comparison shows the residential option is a better deal
than industrial/commercial, but it actually comes out a dead wash. He also
expressed concerns about other city services and felt that costs will be
higher than anticipated. He emphasized that residents have stood before
the EDA and Council and stated they do not want additional affordable
apartments. Mr. Opem also commented on the water level and traffic on
EDA Meeting September 13, 2004
Page 4
Boone Avenue North. He stated there are enough reasons not to let this
project proceed. He stated he believes this project is a waste of city resources
and should be stopped now.
Mr. Andy Hoffe, 4632 Flag Avenue North, stated that by adding more high-
density housing, the EDA is going against city goal 2. Mr. Hoffe inquired as
to what would be developed adjacent to this site. He requested the EDA
table this item and search for businesses to go into this area.
Mr. James Fackler, 4031 Nevada Avenue North, was recognized. He noted
he has been opposed to this project all along because even though the EDA
says there is a tax advantage, New Hope has more than its share of
affordable housing. Mr. Fackler suggested development of a park on this
site if a business cannot be sought.
Ms. Karen Nolte, 8232 Northwood Parkway, was recognized. She stated that
according to local housing studies, the city should not consider additional
affordable housing units as New hope has already approved the
development of enough affordable units.
Mr. Keith Pahl, 5432 Quebec Avenue North, was recognized. He stated that
he drove this area of Boone in midday and had a hard time navigating with
crowded streets and parking. He expressed concern regarding the impact
this housing project will have on existing traffic conditions.
At the request of President Collier, Vince VanderTop, assistant city
engineer, addressed the stormwater issue and parking on Boone. The
needed adjustment can be made for stormwater. As for traffic, Boone is 42
feet wide for two lanes of traffic and parking on one side; the city could add
bumpouts like 36 Avenue to slow the traffic. Although traffic will be
th
heavier than it is now, it won’t exceed the capacity of Boone, which is 10,000
vehicles per day. He stated that when Boone Avenue is scheduled for
updating, the city will consider left turn lanes, etc. Due to the minimal
amount of trips generated by this project, it is not necessary to consider
upgrading Boone Avenue North at this time.
President Collier explained that Carebreak wanted a PILOT (Payment in
Lieu of Taxes). Under those terms, the EDA was supportive of conveying
the property, but the business was sold and the new owners decided not to
pursue adult daycare.
Ms. Juanita Hoffe, 4632 Flag Avenue North, was recognized. She stated that
some of the previous speakers do not intend to cast aspersions on
individuals who rent. She believes the city did a good job of planning and
developing apartments, resulting in 49% of the housing units in New Hope
being renter occupied. She expressed her support of PPL as a developer, yet
would prefer to see PPL help existing communities rather than developing
commercial/industrial land. Ms. Hoffe stated her concern with the lack of
EDA Meeting September 13, 2004
Page 5
dedicated park area on the PPL site as well as the Winnetka Green project.
Ms. Hoffe stated that the developers should be required to develop park
areas rather than provide a park dedication fee to the city. Ms. Hoffe
reiterated the concerns of others regarding traffic on Boone Avenue.
President Collier stated that he understands the traffic and parking
concerns, however, this project will add a nominal number of new trips to
Boone Avenue. President Collier stated that when Boone Avenue is
upgraded in the future, the city will need to consider parking issues as well
as the placement of traffic calming devices.
PPL agrees that there will be families with kids and the project will have a
playground. PPL has a great partnership in New Hope. PPL took troubled
properties and improved them. Engineering will be successful on the points
raised. The flow of income to the EDA and city of $2.1 million is in addition
to site improvements reimbursed through the TIF district.
Commissioner Cassen added that there will be green space in both projects,
as Elm Grove Park will be refurbished next to St. Raphael’s. PPL on Bass
Lake Road asked for a playground, the city paid half and there is a
playground there now.
Ms. Susanne Remus, 5432 Quebec Avenue North, was recognized. She
stated that the placement of the stormwater retention pond has decreased
the size of the park area near Winnetka Green. Ms. Remus stated she feels
the park size is unacceptable. She felt the city unnecessarily replaced
playground equipment to compensate for the loss of space.
Ms. Nolte stated that apartments are a business and the city should support
the current apartment community by not granting approvals for additional
rental units in New Hope.
President Collier stated that a competitive rental market is advantageous for
tenants.
Commissioner Cassen reminded the audience that the city is considering
redevelopment of the 60-unit apartment complex next to the golf course.
The hope is that this PPL project would be complete when those 60 units are
demolished. At that time, the city will be replacing 60 units with 35 units of
which eight are eligible for section 8 subsidy.
Commissioner Gwin-Lenth pointed out that not everyone in our community
can afford a single-family home. Speakers tonight have talked about
helping people be able to own their own home. Condominium units are
more affordable than $300,000 to $350,000 single-family homes. It is
necessary to develop a variety of housing types that will continue to serve
all of the residents of New Hope including those that cannot afford a large
single family home.
EDA Meeting September 13, 2004
Page 6
Commissioner Cassen stated that many of the renters in New Hope are
elderly and cannot afford a large single-family home on a fixed income.
Commissioner Cassen expressed pride in the senior housing projects the
city has approved.
Commissioner Sommer stated his opposition to the PPL proposal. He
indicated that New Hope has more than enough affordable housing and it
needs to proactively recruit more commercial/industrial tax base.
Commissioner Sommer stated that he has voted against this project in every
instance except when PPL indicated that it did not need financial assistance
from the city.
MOTION
Motion was made by Commissioner Cassen, seconded by Commissioner
Item 6 Grwin-Lenth, to close the public hearing. All present voted in favor.
Motion carried.
EDA RESOLUTION
Commissioner Cassen introduced the following resolution and moved its
2004-33 adoption “RESOLUTION AUTHORIZING THE TRANSFER OF REAL
Item 6 PROPERTY (5501 BOONE AVENUE NORTH) (IMPROVEMENT
PROJECT NO. 776).” 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.
IMP. PROJECT 776
President Collier introduced for discussion Item 7, Resolution authorizing
Item 7
execution and delivery of a contract for private redevelopment by and
between the New Hope Economic Development Authority and Project for
Pride in Living, Inc. for the redevelopment of 5501 Boone Avenue North
(improvement project no. 776).
EDA RESOLUTION
Commissioner Cassen introduced the following resolution and moved its
2004-34 adoption “RESOLUTION AUTHORIZING EXECUTION AND
Item 7 DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY
AND BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY AND PROJECT FOR PRIDE IN LIVING, INC. FOR THE
REDEVELOPMENT OF 5501 BOONE AVENUE NORTH
(IMPROVEMENT PROJECT NO. 776).” 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.
EDA Meeting September 13, 2004
Page 7
ADJOURNMENT
Motion was made by Commissioner Sommer, seconded by Commissioner
Gwin-Lenth, to adjourn the meeting. All present voted in favor. Motion
carried. The New Hope EDA adjourned at 10:39 p.m.
Respectfully submitted,
Eve Lomaistro
Human Resources Coordinator
EDA Meeting September 13, 2004
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