101104 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes October 11, 2004
Regular Meeting City Hall
CALL TO ORDER
President Collier called the meeting of the Economic Development
Authority to order at 9:11 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 Cassen, seconded by Commissioner
Sommer, to approve the Regular Meeting Minutes of September 27, 2004.
All present voted in favor. Motion carried.
IMP. PROJECT 603
President Collier introduced for discussion Item 4, Discussion and update
Item 4
regarding development proposal for the city-owned property located at
7819 Angeline Drive (improvement project no. 603).
Mr. Shawn Siders, community development specialist, stated at its meeting
of September 27, 2004, city staff provided the EDA with an overview of a
proposed development by Kingsman, LLC for a single family home at 7819
Angeline Drive. At that time, staff indicated that Kingsman, LLC made an
offer to purchase the lot from the EDA for $35,000. Staff was directed to
negotiate the price as the 2002 appraised value was $46,000.
Mr. Siders reported on his meetings with Mr. Peter Long, President of
Kingman, LLC regarding the property. He stated the site may require up to
$11,000 in site preparation costs including $5,000 to strip the topsoil, grade
and compact the new soil brought to the property in order to elevate the
site, $2,000 to conduct two soil boring tests, $2,000 additional cost to
waterproof the basement, if the water table is too high (water table will be
determined by the soil boring tests), and $2,000 for extending the driveway
and adding the brick façade (as requested by staff).
The developer was provided direction by the city’s planning consultant, city
engineer and building official to ensure the proposed single-family house
conforms to all applicable city building codes.
In response to the City Engineer’s request, the developer has agreed to
provide the city with an additional ten-foot wide by forty-seven foot long
(470 sq. ft.) drainage and utility easement to the rear (south end) of the
property. This would allow for the future extension of the existing culvert
EDA Meeting October 11, 2004
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which currently terminates on the east side of the property. This easement
would be conveyed to the city during the closing, if approved by the EDA.
Mr. Long has indicated that the potential purchaser is in a position to cover
the additional expense related to the site preparation work as directed by
the City Engineer and Building Official. Mr. Long also indicated that
because of the additional site preparation costs, which were not anticipated
in the original proposal, his client is not in a position to increase the
purchase price offer. Therefore, Mr. Long has submitted a revised offer to
cover all expenses related to the site preparation work, and pay the EDA
$35,000 for the land acquisition. This is the same purchase price that was
discussed by the EDA at its meeting of September 27, 2004.
Mr. Siders requested direction from the EDA with respect to the proposed
purchase price.
The EDA determined that $35,000 was a fair purchase price based on the site
correction costs.
MOTION
Motion was made by Commissioner Sommer, seconded by Commissioner
Item 4 Gwin-Lenth, authorizing the sale of the property for $35,000. 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 9:25 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting October 11, 2004
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