110804 EDA
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes November 8, 2004
Regular Meeting City Hall
CALL TO ORDER
President Collier called the meeting of the Economic Development
Authority to order at 8:37 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 Gwin-Lenth, seconded by
Commissioner Sommer, to approve the Regular Meeting Minutes of
October 25, 2004, and executive session meeting minutes of October 25,
2004. All present voted in favor. Motion carried.
IMP. PROJECT 776
President Collier introduced for discussion Item 4, Resolution approving
Item 4
financial guarantee of the Hennepin County Housing and Redevelopment
Authority affordable housing incentive fund program in the 5501 Boone
Avenue North development project (improvement project no. 776).
Mr. Kirk McDonald, director of community development, explained that the
resolution before the EDA is routine in nature. Hennepin County has
conditionally approved a $300,000 Affordable Housing Incentive Fund
(AHIF) loan subject to EDA consent to its participation. These funds were
part of the funding package that was identified when the EDA approved the
redevelopment contract for the 5501 Boone Avenue North development
project on September 13, 2004. He stated the property closing recently
occurred and construction is expected to commence on the 35-unit
apartment complex sometime in November.
Mr. Dan Donahue, city manager, noted that the county is seeking approval
by the city merely as a courtesy.
EDA RESOLUTION
Commissioner Gwin-Lenth introduced the following resolution and moved
04-36 its adoption “RESOLUTION APPROVING FINANCIAL GUARANTEE
Item 4 OF THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT
AUTHORITY AFFORDABLE HOUSING INCENTIVE FUND
PROGRAM IN THE 5501 BOONE AVENUE NORTH DEVELOPMENT
PROJECT (IMPROVEMENT PROJECT NO. 776).” The motion for the
adoption of the foregoing resolution was seconded by Commissioner
Cassen, and upon vote being taken thereon, the following voted in favor
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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.
PUBLIC HEARING
President Collier introduced for discussion Item 5, Public Hearing –
IMP. PROJECT 603
Resolution approving sale of property at 7819 Angeline Drive to Kingsman,
Item 5
LLC (improvement project no. 603).
Mr. Shawn Siders, community development specialist, stated the public
hearing is to consider the sale of the property at 7819 Angeline Drive for
$35,000 to Kingsman, LLC. He reviewed building improvements totaling
$11,000 of additional expense to the developer that were requested by the
city since the initial offer. Mr. Siders indicated staff recommends proceeding
with the transaction.
President Collier opened the floor for comments. There was no one in the
audience to address the EDA for the public hearing.
CLOSE HEARING
Motion was made by Commission Gwin-Lenth, seconded by Commissioner
Item 5 Sommer, to close the public hearing. All present voted in favor. Motion
carried.
EDA RESOLUTION
Commissioner Cassen introduced the following resolution and moved its
04-37 adoption “RESOLUTION APPROVING SALE OF PROPERTY AT 7819
Item 5 ANGELINE DRIVE TO KINGSMAN, LLC (IMPROVEMENT PROJECT
NO. 603).” 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.
IMP. PROJECT 716
President Collier introduced for discussion Item 6, Discussion regarding
Item 6
appeal of commissioner’s award for 7809 Bass Lake Road (improvement
project no. 716).
Mr. Steve Sondrall, city attorney, updated the EDA on the negotiation
process. He stated the city has until November 29 to file an appeal to the
commissioner’s award unless a mutually agreed upon resolution can be
achieved with the property owner before that time.
He noted the property owner’s attorney wanted him to convey to the EDA
that the owners of the 20/20 eye clinic were not only successful business
owners of the city but also own a residential property in the city that is
occupied by their daughter.
President Collier acknowledged receipt of a telephone message from the
property owner and explained his reluctance to return the phone call due to
EDA Meeting
Page 2November 8, 2004
the existing litigation process.
The EDA conveyed its desire to retain the business elsewhere within the city
if possible. Mr. Sondrall noted that the city has retained the services of a
relocation specialist to work with all the property owners whether
residential or commercial properties.
Ms. Jane Bockhaus, 5201 Sumter Avenue North, was recognized. She stated
she and her husband own the property at 7809 Bass Lake Road. She
expressed her desire to move forward with the process so that they can
pursue finding an alternate office site. She referred to the commissioner’s
award as a decision made by impartial experts and urged the EDA to settle
on the $300,000 price. She noted the legal fees expended to continue
negotiations will likely exceed the $20,000 price difference.
President Collier thanked Ms. Bockhaus for her comments.
IMP. PROJECT 751
President Collier introduced for discussion Item 7, Resolution finding need
Item 7
to acquire title and possession of three additional Winnetka Avenue East
area development properties prior to the commissioner’s award, approving
the appraisal of damages for each property resulting from the taking, and
ratifying and authorizing all steps taken by staff to acquire the properties
((tracts D, F, and G, Registered Land Survey No. 97 - improvement project
no. 751).
Mr. Steve Sondrall, city attorney, explained that the three tracts citied in the
resolution are all within the vacated Sumter Avenue North area. The
properties were designated in an unusual manner in that they were each
designated for street use as a separately-defined easement parcel rather than
as a 33-foot easement area within a developable lot. The title issue was
inadvertently overlooked during the title review process and the three tracts
were not included in the initial condemnation proceeding.
Mr. Sondrall recommended that the EDA offer to pay the approved
appraisal value of $13,200 for the three tracts in order to streamline the
acquisition process and complete the title transfer to Ryland Homes.
EDA RESOLUTION
Commissioner Sommer introduced the following resolution and moved its
04-38 adoption “RESOLUTION FINDING NEED TO ACQUIRE TITLE AND
Item 7 POSSESSION OF THREE ADDITIONAL WINNETKA AVENUE EAST
AREA DEVELOPMENT PROPERTIES PRIOR TO THE
COMMISSIONER’S AWARD, APPROVING THE APPRAISAL OF
DAMAGES FOR EACH PROPERTY RESULTING FROM THE TAKING,
AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF
TO ACQUIRE THE PROPERTIES ((TRACTS D, F, AND G,
REGISTERED LAND SURVEY NO. 97 - IMPROVEMENT PROJECT NO.
751).” The motion for the adoption of the foregoing resolution was
seconded by Commissioner Andersen, 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:
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None; Absent: None; whereupon the resolution was declared duly passed
and adopted, signed by the president which was attested to by the executive
director.
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 9:10 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
EDA Meeting
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