092704 EDAOfficial File Copy ----
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
September 27, 2004
President Don Collier
Commissioner Doug Andersen
Commissioner Sharon Cassen
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
2.
3.
4.
o
Call to order
Roll call
Approval of regular meeting minutes of September 13, 2004
Resolution regarding execution and delivery of a contract for private redevelopment
by and between the New Hope Economic Development Authority and the Ryland
Group, Inc. (Winnetka Green Phase III) (improvement project no. 773)
Discussion and update regarding development proposal for the EDA owned property
located at 7819 Angeline Drive (improvement project no. 603)
Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes
Regular Meeting
September 13, 2004
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 751
Item 4
EDA RESOLUTION
2004-32
Item 4
EDA Meeting
Page 1
President Collier called the meeting of the Economic Development
Authority to order at 8:40 p.m.
Present:
Don Collier, President
Doug Andersen, Commissioner
Sharon Cassen, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
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.
President Collier introduced for discussion Item 4, Resolution authorizing
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.
Commissioner Cassen introduced the following resolution and moved its
adoption "RESOLUTION AUTHORIZING NEGOTIATION OF AN
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.
September 13, 2004
IMP. PROJECT 734
Item 5
EDA Meeting
Page 2
President Collier introduced for discussion Item 5, Discussion and update
regarding concept plans for the proposed development of 4301-4317 Nevada
Avenue North (improvement project no. 734).
Mr. McDonald introduced Shawn Siders, community development
spedalist.
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
· j.c0ncept. Otherwise the current proposal is too problematic and may not
Serv~ 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
September 13, 2004
IMP. PROJECT 776
Item 6
EDA Meeting
Page 3
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
assodation 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.
President Collier introduced for discussion Item 6, Public Hearing -
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 351 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
September 13, 2004
EDA Meeting
Page 4
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 dty 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 theTIF 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
September 13, 2004
EDA Meeting
Page 5
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 storrnwater 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
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
· '~!e*el°ping:apartments, resulting in 49% of the housing units in New Hope
.'being Xenter 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
September 13, 2004
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 dty 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 storrnwater 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 dty unnecessarily replaced
playground equipment to compensate for the loss of space.
Ms. Nolte stated that apartments are a business and the dty 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.
EDA Meeting
Page 6
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
.i.~ore' 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.
September 13, 2004
MOTION
Item 6
EDA RESOLUTION
2004-33
Item 6
IMP. PROJECT 776
Item 7
EDA RESOLUTION
2004-34
Item 7
EDA Meeting
Page 7
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 was made by Commissioner Cassen, seconded by Commissioner
Grwin-Lenth, to close the public hearing. All present voted in favor.
Motion carried.
Commissioner Cassen introduced the following resolution and moved its
adoption "RESOLUTION AUTHORIZING THE TRANSFER OF REAL
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.
President Collier introduced for discussion Item 7, Resolution authorizing
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).
Commissioner Cassen introduced the following resolution and moved its
adoption "RESOLUTION AUTHORIZING 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)." 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.
September 13, 2004
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.
Eve Lomaistro
Human Resources Coordinator
EDA Meeting
Page 8
September 13, 2004
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 09-27-04 EDA
Item No.
By: Kirk McDonald By:
RESOLUTION REGARDING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE
REDEVELOPMENT BY AND BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
AND THE RYLAND GROUP, INC. (WINNETKA GREEN PHASE III) (IMPROVEMENT PROJECT NO. 773)
.REQUESTED ACTION
Staff is requesting that the EDA approve a resolution regarding affirming support of the Winnetka Green
Phase III expansion and authorizing staff to proceed with appraisals and relocation estimates and to continue
work on the studies necessary to determine ehgibility of the eight Phase HI parcels for inclusion in the TiF
District.
The attached resolution was prebared by Krass Monroe, the city's financial consultant. A representative from
Krass Monroe will be present to answer questions.
POLICY/PAST PRACTICE
The EDA routinely takes action on redevelopment projects that meet the goals of both the Comprehensive
Plan and the City Plan.
BACKGROUND
An update on the proposed Winnetka Green Phase HI was presented at the August 9, 2004, EDA meeting.
Since that time, staff coordinated a Winnetka Green neighborhood open house on August 25 and continued to
coordinate on other aspects of the proposal. A special City Council meeting was also held on September 23
specifically to discuss the proposed expansion. '
If authorized, Forsythe Appraisals, who completed other appraisals in the project area, would complete the
appraisals of the eight properties. The relocation estimates would be completed by Evergreen Land Services,
the city's-relocation consultant.
"
~. ::. SECOND BY
h\RFA\PLANNING\Housin \East Winnetka Redevelo ment\Q- hase 3 affirmin su ort.doc .
Request for Action Page 2 09-27-04
With the approval of this resolution, staff would continue working on the following tasks:
Continue coordination with Krass Monroe and Ryland on finalizing the amended redevelopment
contract and the TIF District modification.
Coordinate the completion of appraisals and relocations estimates for the eight properties.
· Continue coordination with Ryland on revised plans.
· Coordinate on planning steps necessary to amend the PUD and plat.
Staff will return to the EDA on October 11, 2004 to present an amendment to the redevelopment contract and
to complete the required actions necessary for the TIF District modification.
Staff recommends approval of the resolution.
FUNDING
As per the term sheet approved at the July 26, 2004, EDA meeting, Ryland Homes deposited $25,000 with the
city to cover initial expenses related to the phase ti/expansion. The costs associated with the appraisals,
relocation estimates ~and TIF ehgibility will be funded with these dollars.
ATTACHEMENT
· Resolution
Section 2. Findinqs.
2.01 Assuming that the findings referred to in Section 2.02(2) can be made, the
EDA hereby finds that Phase III promotes the objectives outlined in its Restated
Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota
Statutes, Section 469.001 et seq.
2.02 The EDA intends to approve the Contract and authorize execution thereof
provided that:
(1)
The Contract, in the form that it is presented to the EDA, shall be in
substantial conformity with the Term Sheet approved by the EDA at
its meeting on July 26, 2004, and
(2)
The appropriate findings can be made to permit modification of Tax
Increment Financing District No. 03-1 (Special Law) (the 'q'lF District")
pursuant to Minnesota Statutes, Section 469.174 et seq. and, as
applicable, Laws of Minnesota 2003, l=t Special Session, Chapter 21,
Article 10, Section 10, all as amended and supplemented from time to
time, to include the Phase III pamels within the District.
Section 3. Authorizations.
3.01 City staff are hereby authorized to engage Forsythe Appraisals, LLC to obtain
appraisals for the eigh['properties located within Phase III.
3.02 City staff are hereby authorized to engage Evergreen Land Services
Company'to obtain relocation estimates for the eight properties located within Phase III.
3.03 City staff are directed to continue to work with Short Elliott Henddckson Inc. to
complete the studies necessary to determine the eligibility of the Phase III parcels for
inclusion in the TIF District.
Adopted by the EDA this
day of ,2004.
ATTEST:
~aniel J. Donahue, Executive Director
G:\WPDATA\N\NEW HOPE'~26~DOC\EDA RESOL RE REDEV AGR,DOC
Don Collier, President
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION REGARDING EXECUTION AND DELIVERY OF A
CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND THE
RYLAND GROUP, INC. (WINNETKA GREEN PHASE III)
BE IT RESOLVED by the New Hope Economic Development Authority (the "EDA")
as follows:
Section 1. Recitals.
1.01 Ryland Homes of The Ryland Group, Inc. (the "Redeveloper") is currently
constructing Phases I and II of the Winnetka Green redevelopment project on Winnetka
Avenue North.
1.02 The EDA is considering the addition of a proposed Phase III to Winnetka
Green ("Phase II1")which would be constructed on the following parcels, together with any
City rights-of-way which would have to be vacated between or adjacent to the parcels:
Street Address
5509 Sumter Ave N
5510 Sumter Ave N
Property
Identification Number
05-118-21-33-0086
05-118-21-33-0099
05-118-21-33-0030
05-118-21-33-0098
05-118-21-33-0097
05-118-21-33-0096
05-118-21-33-0095
05-118-21-33-0094
5501 Sumter Ave N
7708 55th Ave
7700 55th Ave
7624 55th Ave
7616 55th Ave
7608 55th Ave
"1.03' it has be'-en' propOSed that the EDA enter into a Contract for Private'
Redevelopment (the "Contract") with The Ryland Group, Inc. relating to the Phase III
,~.amels.
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 09-27-04 EDA
Item No.
By: Kirk McDonald, Director of CD By:
Shawn Siders, CD Specialist 5
DISCUSSION AND UPDATE REGARDING DEVELOPMENT PROPOSAL FOR THE EDA OWNED
PROPERTY LOCATED AT 7819 ANGELINE DRIVE (IIvIPROVEMENT PROJECT FILE NO. 603).
REQUESTED ACTION
:Staff requests EDA discussion and direction regarding the proposed development of the EDA owned parcel
located at 7819 Angeline Drive. The property is vacant and has never been developed. The city has recently
received an inquiry for a private market sale of the property for the development of a single-family home.
POLICY/PAST PRACTICE
City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties
within the city. The EDA has been addressing the residential portion of this goal through the city's many
housing activities. In the past, the city has sold property based upon appraised values and acceptable
development proposals.
BACKGROUND
At its meeting of February 2, 1999, the New Hope Economic Development Authority authorized the purchase
of the property located at 7819 Angeline Drive from Hennepin County. The property was forfeited to the
county due to nonpayment of taxes. The EDA acquired the site for approximately $7,053 which included the
sales price of $5,000, $223.70 for incidental expenses as well as special assessment fees in the amount of $1,830.
On April 22, 2002, the city council approved an appraisal and survey of the property located at 7819Angeline
Drive. This action was taken in response to a development proposal submitted by SLP Investments, Inc. for
the potential sale and development of this property. The survey of the property was completed and the
appraisal indicated that the property had a fair market value of $46,000. Ultimately, SLP, Inc. chose not to
develop this site because a purchase agreement for the adjoining vacant lot (7813 Angeline Drive) could not
be agreed upon between SLP and. that property owner.
MOTIOI~I._.By. SECOND BY
I:\RFA\PLANNING\Housin \7819\Q-7819 EDA U date 9-27-04.doc "'- ~
Request for Action Page 2 September 27, 2004
At the meeting of. April 22, .2002, the city council did not authorize two soil borings for this property. The city
was advised by its engineer that it would be prudent to perform soil borings, however, the city council
indicated that the responsibility of conducting soil borings should be at the expense of the developer, after the
property was transferred to the developer.
On September 21, 2004, Kingsman, LLC submitted a development proposal for the purchase and development
of a single family home on the property located at 7819 Angeline Drive. City staff has reviewed the proposal
and it is in substantial compliance with the city's Zoning Ordinance. The developer has indicated that a
purchaser has been identified and they would like to move into the home on or around December 1, 2004.
The proposed single-family unit will have three bedrooms and two bathrooms with 1,225 square feet of
finished space. The main level would be 970 square feet. There will be a two-car garage constructed to the
front of the home. A conceptual site plan, building elevations and color photographs of the style of home
proposed for construction are attached for your convenience. This developer has constructed numerous
homes on sites with environmental and other site constraints. For example, Mr. Long constructed two homes
in Faribault that adjoined a swamp. There were numerous site remediative actions that were necessary in
order to construct these homes. Mr. Long has constructed numerous models that are similar to the unit he
proposes for development in New Hope.
The developer has offered to purchase the lot for $35,000. The applicant indicates that the $35,000 lot price
was calculated by considering what the potential purchaser can afford with the site improvements that are
being proposed.
The city has not been actively marketing this property. City staff have provided information regarding this
parcel to developer inquiries coricerning the availability of vacant lots in the dty.
REQUESTED ACTION
Staff seeks direction from the EDA on the following items:
1. Determine the interest of the EDA to sell this property for the construction of a single-family,
market rate owner occupied home;
2. To determine whether or not the EDA would like to accept the enclosed proposal or direct staff to
actively market this site to multiple developers;
3. If the EDA finds this proposal acceptable, what actions should be taken by staff to finalize the
transfer of property.
Staff will be presenting a single development proposal to the EDA for its consideration. As noted, the city is
not actively.marketing_this site f..or potenti~ development. If the EDA would rather actively market this site,
this process could'-be more time corks, uming and expend additional resources that may not be necessary.
Ultimately, all funds expended to market this site will be recovered from the proceeds of the sale, however,
the am0~xnt of proceeds that are directed as income to the EDA may be reduced as it will be necessary to cover
the costs associated with the potential marketing and advertising.
If the EDA would prefer to negotiate with the proposed developer and not actively market the site, city staff
seeks direction with respect to what actions should be taken by staff to finalize the sale of this property. As
Request for Action Page 3 September 27, 2004
previously noted,, an appraisal was completed in 2002 that indicated the fair market value of the site is
$46,000. If directed by the EDA, staff will order an updated appraisal for further consideration by the EDA.
If the EDA would like to complete an updated appraisal, staff will schedule a resolution towards that end for
the EDA's consideration at its meeting of October 11, 2004.
If the EDA chooses not to proceed with a new appraisal, city staff requests direction with respect to the
proposed purchase price submitted by the applicant. The $35,000 offer is significantly greater than the
original purchase price of $7,053.70, however, it is $11,000 less than the value determined by the appraisal.
Because there were no soil borings conducted, city staff cannot reasonably determine what costs may be
associated with corrective soils measures that may or may not need to be completed.
If the EDA finds the proposed purchase price acceptable, city staff will schedule a resolution authorizing a
public hearing for the transfer of this property for the EDA meeting of October 11, 2004. If the proposed
purchase price is not acceptable and the EDA does not want to order an updated appraisal, city staff will enter
into negotiations with the applicant, based upon the direction provided by the EDA.
FUNDING
EDA funds would be used to pay for all costs necessary to transfer the property and would be repaid upon
closing.
Currently, the property is vacant and tax exempt. The applicant has indicated that the value of the house will
be approximately $180,000 - 200,000. It is anticipated that this property would generate approximately $2,500
- $3,000 in annual tax revenue.
ATTACHMENTS
· Letter from Kingsman, LLC
Concept site plan
Front, Rear and Side Yard elevation plan(s)
· Floor layout plan
· Color photographs of similar home
KINGSMAN
Kingsman LLC
3512 Hampshire Ave N
Crystal MN 55427
Ph 612-382 -9454
Toll flee fax 1-866-554-6110
SEP
September 21, 2004
Kirk McDonald
City of New Hope
4401 Xylon Ave N
New Hope MN 55428
Re:
7819 Angeline Drive
Lot 24 Block 5 JP RIEDEL & CO ST RAPHAEL ADDN
Dear Kirk and city council members,
Kingsman is requesting to purchase this property for new construction of a single-family
residence. A resident has already been identified and would like to be able to move into
the house on Decemb~ 1, 2004.
Kingsman is requesting a purchase price of the lot for $35,000. This price was chosen so
that the resident will be able to afford the house when completed. A copy of the house
plans is included along with pictures of the home. This will be a rambler style house
three bedrooms and two bathrooms finished. The main level will have 970 square feet
and a total of 1225 finished square feet.
Peter Long the owner of Kingsman LLC got started in the construction industry in 1983
framing new houses while going to college at the University of Minnesota. Kingsman
LLC was formed in 2001 and has primarily focused on construction of single-family
residences in the starter family price bracket.
Please contact me if you have any questions.
President
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