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112204 EDA ---- Official File Copy .--. CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North November 22, 2004 President Don Collier Commissioner Doug Andersen Commissioner Sharon Cassen Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 1. Call to order 2. Roll call 3. Approval of regular meeting minutes of November 8, 2004 4. Resolution accepting re-conveyance of property (Outlot A, Winnetka Green), improvement project no. 751 5. Resolution authorizing and calling for a closed meeting of the New Hope Economic Development Authority 6. Adjournment 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 EDA Meeting Page 1 November 8, 2004 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 2 November 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: EDA Meeting Page 3 November 8, 2004 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 Sornmer, seconded by Commissioner Andersen, to adjourn the meeting. Ail present voted in favor. Motion carried. The New Hope EDA adjourned at 9:10 p.m. Respectfully subrnitted, Valerie Leone City Clerk EDA Meeting Page 4 November 8, 2004 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ~ 11-22-04 EDA  Item No. By: Kirk McDonald, Director of CD By: Shawn Siders, CD Specialist 4 A RESOLUTION ACCEPTING RE-CONVEYANCE OF PROPERTY (OUTLOT A, WINNETKA GREEN). (IMPROVEMENT PROIECT NO. 751) REOUESTED ACTION Staff requests that the EDA approve the enclosed resolution recognizing and approving the gift of Outlot A from Ryland Homes to the city of New Hope and acknowledging that Outlot A may be utilized by the city and subsequent property owners separate from the requirements of the Redevelompent Contract. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. BACKGROUND The City Attorney has advised city staff that the gift of Outlot A from Ryland Homes should be accepted and transferred to the city of New Hope, not the EDA. Because the EDA approved the Redevelopment. Contract and originally transferred the land to Ryland Homes, it is necessary to consider a resolution acknowledging that Outlot A may be utilized by the city and subsequent property owners separate from the requirements of the Redevelompent Contract. This resolution also supports the gift of Outlot A from Ryland Homes to the city of New Hope. The enclosed resolution is procedural in nature and simply allows the New Hope City Council to acquire the property rather than the EDA. This action removes all redevelopment encumbrances from Oulot A. REQUEST FOR ACTION: Staff recommends the EDA approve the enclosed resolution ATTACHMENTS: Resolution MOTION BY ~,~~ SECOND BY I: \ RFA \ PLANNING \ Housin~ \ OutlotAGiftAcce~t.doc RESOLUTION NO. 04 - RESOLUTION ACCEPTING RE-CONVEYANCE OF PROPERTY (OUTLOT A, WINNETKA GREEN) WHEREAS, the Economic Development Authority in and for the City of New Hope (the "Authority"), has entered into a Contract for Private Redevelopment with The Ryland Group, Inc. ("Ryland") dated as of March t9, 2004 (the "Contract"); and WHEREAS, roughly 42 parcels of land located southeast of the intersection of Bass Lake Road and Winnetka Avenue North have been transferred by the Authority to Ryland pursUant to the Contract for purposes of redevelopment into a Planned Unit Development District which includes carriage homes and condominiums (collectively, the "Redevelopment Propertf'); and WHEREAS, a parcel of land that has been platted by Ryland as Outlot A, Winnetka Green ("Outlot A") is part of said conveyances; and WHEREAS, Ryland has determined that construction is not required on Outlot A and has further determined that it has no need for Outlot A as part of its redevelopment of the Redevelopment Property; and WHEREAS, Ryland has offered to convey to the City, without charge, title to Outlot A; and WHEREAS, it has been proposed that the EDA agree to the removal ofOutlot A from the Redevelopment Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That removal of the real property platted as Outlot A, Winnetka Green, Hennepin County from all terms and conditions of the Redevelopment Contract is hereby approved. 2. That any deed that has been or will be delivered by The Ryland Group, Inc. to the City to accomplish transfer of said Outlot shall not constitute a violation of the Contract or a violation of any documents executed by the Authority related thereto. 3. That the President and/or Executive Director are hereby authorized and directed to execute any documents necessary and proper to evidence the removal of said Outlot from the Contract. 1 Dated the 22nd day of November, 2004. Don Collier, President Attest: Dan Donahue, Executive Director EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ~k 7 11-22-04 EDA Item No. 5 By: Kirk McDonald By: RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY REQUESTED ACTION Staff is requesting that the Economic Development Authority approve the enclosed resolution prepared by the city attorney entitled Resolution Authorizing and Calling for a Closed Meeting of the New Hope Economic Development Authority. POLICY/PAST PRACTICE The City Council and Economic Development Authority have conducted closed meetings in the past regarding litigation matters, as allowed by state law. BACKGROUND The EDA held a closed meeting to consider the Award of Commissioners in the 20/20 Eye Clinic property taking for the Winnetka Green development. This property is located at 7809 Bass Lake Road. Staff and the city attorney are requesting a second closed meeting to consider the appeal of the Award of Commissioners. ATTACHMENTS · Resolution I:RFA\planning\livable communities/Q-eye clinic closed mtg EDA RESOLUTION NO. 04- RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, Minn. Stat. § 13D.05, Subd. 3 (b) authorizes and permits the New Hope EDA to hold a closed meeting to discuss City/EDA issues and information protected by the attorney-client privilege, and WHEREAS, the New Hope EDA has commenced or has been made a party to a lawsuit or been threatened with litigation which has presently activated its right under the referenced statute to hold a closed meeting, and WHEREAS, specifically the EDA is a party to a lawsuit commenced pursuant to Minn. Stat. Chap. 117 identified as Hennepin County District Court File No. CD 2743 for the purpose of acquiring real property located at 7809 Bass Lake Road for housing redevelopment purposes, and WHEREAS, on October 19, 2004 the Award of Commissioners was filed in this action. The award requires the EDA to pay the property owners $300,000.00 in damages for the taking of the property at 7809 Bass Lake Road, and WHEREAS, the EDA has held a prior closed meeting on October 25, 2004 to consider appealing the award and instructed the City Attorney to continue negotiating with the attorney for the property owner to reach a settlement of this case without the need to appeal the award to District Court, and WHEREAS, a second closed meeting of the New Hope EDA is necessary to consider the appeal oft he Award of Commissioners or the acceptance of the property owners settlement offer and to consider various legal strategies for the continued prosecution of District Court File No. CD 2743 in the event an appeal is determined necessary. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That a closed meeting of the New Hope EDA shall be held on November 22, 2004 immediately following the adjournment of the regular meeting of the New Hope City Council, or adjournment of the regular meeting of the New Hope EDA in the event said public bodies have a regularly scheduled meeting on said day, at the New Hope City Council Chambers. -1- 2. That the purpose of the meeting shall be the discussion of an appeal of the Award of Commissioners, settlement alternatives and prosecution/defense strategies in connection with litigation of Hennepin County District Court File No. CD 2743. 3. That said meeting shall not be open to the public. 4. That the New Hope City Clerk is hereby directed to tape record the closed meeting and preserve the tape recording for a period of two years from the date of the meeting. 5. That the New Hope City Clerk shall prepare a written roll of the members and all other persons present at the closed meeting and make said roll available for public inspection upon adjournment of the closed meeting. Adopted by the Economic Development Authority in and for the City of New Hope this 22nd day of November, 2004. Don Collier, President Attest: Daniel J. Donahue, Executive Director P:\Attorney\Cnh Resolutions\CNH99.53074-003-EDA Reso Authorizing 2nd Closed Mtg to consider award or appeal.doc -2-