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062292 EDAOFFICIAL FILE COPY CITY OF NEW HOPE EDA AGENDA EDA Regular Heeting #9 Agenda #10 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Garx L'Herault Commissioner Gerald Otten Commissioner Marky Williamson June 22, 1992 2. 3. 4. Call to Order Roll Call Approval of Minutes of June 8, 1992 (Regular and Executive Session) Discussion Regarding City-Owned Property at 7305 42nd Avenue North - All Star Sports/Valvoline Rapid Oil Change (#492) Resolution Authorizing Acquisition of 5501 Boone Avenue North by Eminent Domain Proceedings (#493) Adjournment Approved EDA Minutes Meeting #8 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 June 8, 1992 CALL TO ORDER ROLL CALL APPROVE MINUTES AUTOHAUS PRO~ECT #467 Item 4 President Erickson called the meeting of the Economic Development Authority to order at 9:06 p.m. Present: Erickson, L'Herault, Otten, Enck, Williamson Motion was made by Commissioner Otten, seconded by Commissioner L'Herault, to approve the EDA minutes of May 26, 1992. Voting in favor: Erickson, L'Herault, Otten, Enck; Abstaining: Williamson. Motion carried. President Erickson introduced for discussion Item 4, Consideration of Addendum to City of New Hope Development Contract with Autohaus of Minneapolis, Inc. Mr. Dan Donahue, City Manager, explained that revisions requested by the EDA on May 26th have been made to the addendum. The revisions include the requirement of installation of the bomanite within six months after Universal Color Lab leaves the site, all original improvements in the rear of the building must be made no later than 1993 and if Autohaus cannot meet that deadline, they must request another extension, and seeding to control erosion must be done by June 15, 1992. President Erickson asked whether Autohaus is in agreement with the Addendum. Mr. Oestrich informed the EDA that Autohaus would like to install bituminous and concrete rather than the bomanite paving. He added that bomanite does not strengthen the surface yet it is $30,000 more expensive than bituminous. He noted the grade of bituminous will be the equivalent of cement. He expressed opposition with being required to replace a bituminous surface which would only be a few years old. Commissioner Enck reminded Mr. Oestrich that the bomanite paving was a commitment previously made by Autohaus and the EDA wants to hold Autohaus to that commitment. He stated if an equivalent paving material is used, Autohaus has the capability to request approval at a later date regarding the alternate surface. He commented that at this time (prior to actually viewing a completed parking New Hope EDA Page i June 8, 1992 HOTION Item 4 CITY-OWNED PROPERTY (#492) Item 5 lot) the EDA is unwilling to agree to anything less than the original agreement. President Erickson explained that the EDA wishes to work with Autohaus and is not unreasonable; however, the EDA must insist upon certain requirements in the formal agreement. Motion was made by Commissioner Enck, and seconded by Commissioner Williamson, to approve the addendum to City of New Hope Development Contract with Autohaus of Minneapolis, Inc". All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Discussion Regarding City-Owned Property at Southwest Corner of 42nd/Nevada Avenues (#492). Mr. Donahue informed the EDA that several months ago a purchase offer was made by Valvoline Inc. to install a Rapid Oil facility on the city-owned property. He noted the City's development plan attempts to minimize petroleum businesses and a Rapid Oil facility does not particularly fit this plan. All Star Sports was contacted regarding whether they would be interested in expanding their adjacent business onto the vacant parcel. This would complement their existing site and at the same time help meet the City's objectives for developing that area. Mr. Donahue stated All Star Sports has preliminary plans for expansion of the existing All Star Sports building. Mr. Ed Sorgatz, Olson Company, was recognized and explained that he was contacted by Jerry Norman regarding ideas as to how they could add on to their building as well as an estimate of costs. He stated the objectives they tried to accomplish included upgrading the look of the existing building (colors, etc.), to coordinate the new building with the existing building so that it appears as one, and to make the new part accessible to the original building. He explained that the building is considered a "high ranch" since at the time the building was originally constructed, a basement was intended, however due to a high water table the basement was never made. He presented drawings showing a central access corridor which would serve both the new and existing building. Ramps would be used to make the existing building accessible. New Hope EDA Page 2 June 8, 1992 CLOSED MEETING Item 6 EDA RES. 92-03 Item 6 Mr. Sorgatz explained that brick would be used for the exterior to match the existing brick. The building would be upgraded with patterns and colors through the use of standing-seam metal. Landscaping and shrubs would make the current high window system less noticeable. Mr. Sorgatz advised that the Normans b61ieve that the project is possible through a cooperative effort with the City. President Erickson complimented Mr. Sorgatz on the attractive layout. He commented that the City's motivation with 42nd Avenue redevelopment is to upgrade the Avenue, and he was pleased by the plans for additional landscaping. He stated the City is more than willing to help get the property developed, and he encouraged Mr. Norman to meet with the City Manager regarding expansion figures. He explained that the EDAwill have to review it at a later date before making any commitments. Commissioner Enck questioned whether Mr. Norman intends to lease space in the proposed addition. Mr. Norman replied that it is one possibility. Commissioner Enck inquired of Mr. Norman's intentions to make an offer to the EDA regarding the purchase of the property. Mr. Sorgatz felt a couple weeks would be adequate time for him to present costs to Mr. Norman. Mr. Donahue reported that he would like to have a formal offer available for presentation to the EDA on July 27, 1992. President Erickson introduced for discussion Item 6, Resolution Authorizing and Calling for a Closed Meeting of the New Hope Economic Development Authority. Mr. Donahue explained that the resolution authorizes the EDA to hold a closed meeting following adjournment of the regular meetings. Discussion is concerning the pending lawsuit involving the Paro's Pub condemnation (42nd Avenue Redevelopment Project #431). He stated the City purchased some right-of-way property and settlement regarding the value of the property is still unresolved. Commissioner Otten introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY". The motion for the adoption of the foregoing New Hope EDA Page 3 June 8, 1992 AD~OURNHENT resolution was seconded by Commissioner Enck, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Enck, L'Herault, Otten, Williamson; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the £DA meeting as there was no further business to come before the Council. All present voted in favor. The New Hope EDA adjourned at 9:25 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 4 June 8, 1992 Approved EDA Minutes Executive Session CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 June 8, 1992 CALL TO ORDER ROLL CALL PARO'S PUB #431 AD~OURNHENT The New Hope EDA met in executive session pursuant to due call and notice thereof; President Erickson called the meeting to order at 9:56 p.m. Present: Erickson, Enck, Otten, L'Herault, Williamson Also Present: Dan Donahue, Steve Sondrall, Mark Hanson, Kirk McDonald, Valerie Leone. President Erickson introduced discussion regarding the pending lawsuit involving the Paro's Pub condemnation (42nd Avenue Redevelopment Project #431). The EDA directed the City Attorney to offer no more than $22,500, bringing the total payment on this case to $90,500, or the amount of the commissioner's award. If the property owner does not accept the offer, the City Attorney was directed to initiate court proceedings. As there was no further business to come before the Council, the New Hope EDA adjourned its Executive Session at 10:03 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope City Council Executive Session June 8, 1992 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 6-22-92 Item No. By: Kirk McDonald By: 4 Management Assistant DISCUSSION REGARDING CITY-OWNED PROPERTY AT 7305 42ND AVENUE NORTH - ALL STAR SPORTS/VALVOLINE RAPID OIL CHANGE (#492) Staff met with Jerry and Mark Norman of All Star Sports on June lSth and the attached letter was presented to the City outlining the various financial considerations associated with the project. Total cost of the project is estimated at $210,000, including $50,000 for the acquisition of the site. Norman indicated he is interested in utilizing tax increment financing proceeds for site preparation and the amount of public financing was discussed at length. Norman indicated that the owner of Universal Color Lab had contacted him and was possibly interested in sharing the new All Star Addition, pending the outcome of his lease arrangements with Autohaus. Now, instead of the project focusing on just the All Star Sports expansion, two other businesses could be positively impacted by the development. Staff is recommendint~ that this matter be tabled until the ,Iuly 20th Council meetinl~ so that staff can discuss these issues with Color Lab and Autohaus, determine All Star's revenues from rents, determine the increment to be generated from the development, and most important...determine the appropriate amount of TIF subsidy for the project. At that time Norman will need to determine if he can accomplish the project and the EDA will need to determine if they desire to proceed with the All Star Sports or Valvoline Rapid Oil development. Staff also met on June 17th with the Regional Manager of Valvoline Rapid Oil and they are proceeding with a site analysis on the property. (continued) MOTION BYn SECOND BY -/- / f Review: Administration: Finance: RFA-O01 ~ Request for Action EDA 7305 42nd Avenue North June 22, 1992 Page -2- Staff recommends that the EDA consider obtaining an updated appraisal on the property prior to the July meeting. This issue was discussed at the January EDA meeting (minutes enclosed) and at that time it was determined if offers on the property were close to what the EDA would be willing to sell the property for, that the updated appraisal would be beneficial to determine the current market value. The EDA has a formal offer of $75,000 from Valvoline and an informal offer of $50,000from All Star Sports. LaSalle & Associates appraised the property in 1988 in conjunction with the 42nd Avenue project. Staff has contacted LaSalle for a cost estimate on an updated appraisal and they would provide a new appraisal for $750.00. There is not a taxable market value listed for the property in the County's tax listing, but staff has contacted the assessor and he indicated that they would place a value of $50,000 on the vacant property, as that would be comparable to the land surrounding the parcel. Quality Commercial & Industrial Construction for 80 years 5010 HILLSBORO AVENUE NORTH June 11, 1992 MINNEAPOLIS, MINNESOTA 55428 61~/535-1481 Messrs. Je~ry & Mark Norman ALL STAR SPORTS 7341 42nd Ay. N. New Hope, MN 55427 Dear Jerry and Mark: As I indicated following Monday night's meeting, this letter will outline the various financial considerations associated with the project indicated on the attached plan. I. Estimated Project Cost A. Remodeling of Existing Building: $10,000.00 Remove existing entl-f and stairs. New front window. New stairs· New entry system. New fascia metal. Remodel office area. B. New Construction: $115,000~00 · New entry area. · New ramp system. · New accessible bathrooms. New retail space. · Exterior to match existing. Site Work: $25,000.00 · Demolition of existing concrete. Curb and gutter. , · Paving. · Landscaping. *Note: Does not include any costs associated with discovery of contaminated soils· 'I'CYl~AL: $150,000.00 II. Other Costs A. Related Soft Costs: B. Land: Project Costs: $10,000.00 $50,000.00 $150,000.00 TOTAL: $210,000.00 NE:v/~ D~ A~-NUE. ~ ALL "STAi:I"~,PORTS"ADDITION PRELIMINARY" SITE" PLAN ,1 I .:..,.- ,2[1~11111t111111111111111 ," I · ~t,, ,~,1 . 1.4 N . ~vE Z Approved EDA Minutes Meeting #1 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 January 13, 1992 CALL TO ORDER ROLL CALL APPROVE MINUTES CITY-OWNED PROPERTY AT :7305 42ND AVE. N. Item 4 New Hope EDA Page 1 President E~ickson called the meeting of the Economic Development Authority to order at 7:26 p.m. Present: Erickson, L'Herault, Otten, Enck, Williamson Motion was made by Commissioner Enck, seconded by Commissioner L'Herault, to approve the EDA minutes of December 23, 1991. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding City-Owned Property at 7305 42nd Avenue North. Mr. Donahue reported that the City has received an "offer to negotiate" from Valvoline Rapid Oil, Inc. for the property at 7305 42nd Avenue North. He stated the property is located adjacent to All Star Sports. He stated staff is requesting direction from the EDA. President Erickson suggested sending a formal letter to All Star Sports explaining the situation at this particular time and encouraging them to respond if they are planni-ng on doing something to the property so that the City.may respond to the current offer from Rapid Oil. Commissioner L'Herault conveyed the need for a new appraisal on the property. He also felt All Star Sports should be made aware that the City is seriously considering Rapid Oil Inc.'s offer. Commissioner Enck commented that he believes "informal" discussions with All Star Sports should be sufficient incentive for the owner to act on the property if he has any interest in the property. Commissioner Enck agreed with President Erickson's suggestion to formally correspond to All Star Sports. He stated the dialogue should also be opened with the petitioner for the purchase to determine whether he is interested in purchasing the property for an amount near the last appraisal. He stated Rapid Oil may be wanting to purchase it for an amount totally unacceptable to the EDA January 13, 1992 and therefore it would not be necessary expend monies in obtaining a new appraisal. The EDA briefly discussed the project timetable. Mr. Donahue stated it could probably be developed sometime this summer. He commented on the easement across the property which may complicate the issue. President Erickson stated he felt it should be left up to staff as to when an appraisal should be obtained. He noted it will probably become necessary at some point in time. Mr. Donahue stated he will inquire of Rapid Oil's proposed offer. He asked the EDA whether it would be necessary to come back for authorization of an appraisal if staff feels the offer is not in line. President Erickson noted that the comprehensive plan adopted for 42nd Avenue may have to be amended if this type of business is allowed. Commissioner Williamson asked for a brief overview of the proposal submitted by Rapid Oil, Inc. Mr. Donahue stated Valvoline Rapid Oil Change, Inc. would like to build a Rapid Oil Change facility which primarily handles oil changes, lube changes, cooling systems, brake fluids, and other items of that nature. He stated there would be no gasoline or mechanical work involved; it would strictly be the "Rapid Oil Change" operation. He stated the facility would be similar to the one on Hwy. 81 and Bass Lake Road located in Crystal. Commissioner Williamson felt it will be difficult to negotiate a fair purchase price utilizing a four-year old appraisal. Commissioner Otten asked whether further studies should be undertaken as to the options for uses on that piece of property. Mr. Donahue stated a full-scale marketing study could be obtained, but he felt it would be counterproductive given the studies which have been done to date. He stated the original comprehensive plan identified commercial use as a first choice as opposed to an automobile-oriented use. He stated there has not been much interest in the past several years. He noted the property is small in size (a 1/2 acre). President Erickson informed the EDA that he has suggested New Hope EDA Page 2 January 13, 1992 to Colour Lab that he work with the owner of All Star Sports and consider the possibility of having All Star Sports build an addition on their building and allow Colour Lab to lease from All Star Sports. He noted Colour Lab will eventually being moving out of the Autohaus building. He stated he believes that would be an ideal situation. Mr. Oonahue stated he has discussed that option and it was felt'to be unworkable. Mr. Donahue stated he will write a letter t° All Star Sports indicating that Valvoline Rapid Oil Change, Inc. has contacted the City and is interested in acquiring the vacant city-owned parcel at 7305 42nd Avenue North. He indicated that he will ask All Star Sports whether they still have intentions to expand their building onto the adjacent vacant property; and if not, the EDA is willing to give serious consideration to the proposal by Valvoline Rapid Oil. He will convey that the EDAwishes to see the property developed within the next year. Mr. Donahue stated staff will begin discussions with Rapid Oil to inquire regarding their offer. He indicated he will wait for Rapid Oil's offer to determine the necessity of a new appraisal. Commissioner Enck noted if the proposal is out of line he feels an appraisal will not be necessary as the EDA can take that to mean Rapid Oil is only trying to get what appears to have been a distressed piece of property for a low price. He commented that if the offer is close to what the EDA would be willing to sell the property for, then an 'appraisal would be beneficial to determine the current market value. He indicated the EDA could provide authorization at this time for staff to obtain the appraisal based on whether Rapid Oil makes a reasonable offer. President Erickson commented that the land is not a distressed piece of property. Commissioner Enck noted that Rapid Oil may believe the property is distressed and that the City is anxious to sell it. He stated itwould not be cost effective to pay for an appraisal now and then have to do so again in a year or two when another offer may arise. President Erickson directed staff to begin an aggressive marketing program in the spring for property on the north side of 42nd Avenue to see if there is any interest. New Hope EDA Page 3 January 13, 1992 AD,)OURNI~ENT Mr. Donahue reported that he has met with PRISM since their request to the EDA regarding the vacant city-owned property (north side of 42nd Avenue). He indicated they are continuing their efforts and their latest approach was to contact a number of non-profit organizations to explore the construction of a joint facility. He commented that if they did build at that site it is the City Attorney's opinion that they would probably be required to pay property tax. Mayor Erickson noted that PRISM has requested that the City donate very valuable property. Mr. Donahue stated the City paid half a million dollars for the mentioned parcels. Mayor Erickson stated he could not support asking the taxpayers to donate half a million dollars to PRISM unless a worthwhile program could be developed which would benefit the entire City. Commissioner Enck suggested that marketing also be conducted for the Ardell property. Motion made by Commissioner L'Herault, seconded by Commissioner Otten, to adjourn the EDA meeting as there was no further business to come before the Council. All present voted in favor. The New Hope EDA adjourned at 7:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 4 January 13, 1992 C£c7 of New Hope 7305 ~lnd Ave. No. New ~ope, Minnesota R£ve~vay Company The Cloy of New Hope is considerin$ tmprovtn$ the &2nd Avenue Notch corridor, also known as County Rd. g or Rockford Rd. This project involves upsradin$ various intersections, widenin$ ~2nd Ave. No. in certain areas and limiting access ~rom certain prope~cies. The subject p~opercy is parc of the street widening chac will be considered within chis improvement The purpose of chis s,,N-=~ appra£sal is co estimate the marker value of the property in order co establish the basis compensation if the p~opercy is acquired. A complete be£ore and after analysis has hoc been undertaken because of the relative insignificance of the caking. This summazT or scrip appraisal reflecca only the value o~ che parc cakes. ~e subject property vas lnspecced on Hay 30. ~9~,' and valuation concluai~a re, lye around chac point ~n rime. HA~T VALU~ -- The highest price in ce=~s of money which a prope~2 will bring in a competitive and open marker unde~ all conditions requisite co · fair sale, the buyer and seller, each accin$ pz,.tdencly, k~ovLedgeably and assuming the price is hoc affected by undue stimulus. Implicic ~n chis definition is the consummation of · sale as of a spec~fied dace and the pass£ng of title from seller co buyer under conditions whereby: 1. buye~ and selLe~ are CTPically motivated. 2. both par~ies are well informed or well advised, and each acting in vhac he considers his ov~t best interest. 3. a reasonable rime is allowed ~or exposure in the open marker. ~vlrw&y PURPOSE AND DATE OF APPP. AISAL payment is ~ade In cash or ica 5. f~nancin$, i£ any, is on terms senerally available in the community ac che specified dace and typical for ohm proper~y eTpe in its ~ocale. 6. ohm price represents a normal cons~deracion for the proper~y sold unaffected by special ~lnanctn$ amounts o._ and/or terms, services, ~ees, coats, or credits incurred In the PROP~tTT IDKNTIFICATION L~GAL DESCltZPTION: Notch 125 fete o~ ~)cs 3 and 4, B~ock 6, ~ockfork Park IDENTIFICATION Z7-ZlS-21-24-006X ASSeSSOr'S ~T VALUE Land on].y $ S2,500 $Z3.390.0S :EneXudel spect~Z assessment pa~uenc of: $ZOS.83 AND NEZGH~ORHO0~ The subject property is ~oca~ed in the ¢1c7 of Ney ~ope, a veil ~eve~oped second-=inS aubu=~ no~hves~ of Mlnneapolfs. The cie7 has $=ovn f~om a p~edom£nan~lY ru~a~ commum£~7 o~ the ea~lF lg~O'a ~o f:s presen~ pop~a=lon of appro~£ma~el~ 23,000. gO pe~cem~ deve~ope~. Z~ baa adopted a ve~l-def£med Lam~ use plan ~b~ has ~ef~ pos=ions of the ~amd in ~reen, open spaces as well aa ~ec=ea~iomal a~eas. The Mec~opo~£~am ¢ounc£1 ea~L~a~es the average mean va~e of s~ms~e famil2 homes in che area co be approx£mace~y $8~,~:. The f~cuze o~ Hey Hope can be accci~ced co ~cs ~ocaciom, Just minutes ~=~ do~co~ H~nneapoL~s. ~cs p=oximic7 co do~co~ ~nneapo~s v~l continue co be irs sc=on~esc asset, as ~ch o~ irs po~acion rocks ~n do~co~ Hlnneapo~is and ~ves ~n the su~u=~. ~e c~c~ has a yell p~anned scceec system. ~2nd Avenue Notch a ~Jor coat,lc acce~ ~in~ ease and vest vh~ch provides access the ~Joz ~nCe:lClCe aTace~ o~ the ~in C~cy aec=opoLLcan area, Count', · d. L~ ~ the ~ac and T. ~. ~00/16~ on the ease. ~e subject pwopezc2 ~s located ~n the souchvesc co~er off ~2nd Ave. ~o. and ~e~da Ave. ~2nd Ave. ~o. La a ~ ~ane scceec with L~iced access ~in~ eaac and yeac. ~evada Ave. ~o. Lsa Loca~ coLleccoc scceeC ~nin~ notch and south. LOCATION AND NEIGHBORHOOD ¢¢ONT'D~ T~e development around the sub]acc property is mized co~nercia~. beyond. To the vest is an incecliX of office buildings and single_ story recall buildings. To the notch, &cross ~/nd Ave. ara vacant parcels with ~ulci-f&nlly residential beyond. SITE OESC~IPTION The sics la level sc street grade and gradually slopes dovT~V&rd sics is good end chore is nothing co indicate chat the sics hie odverse or unstable soil conditions, from i visual observation. The right of ray for il Ave. No. is alerts the northern property line, a distance of approxinacely ~25 feet. The screec easement' consists of an area approximately 1 fc by ~2~ fo. and the utility easement approxiaacely 3 fc by 12S lc. The right.of vay is improved vich a curb and blacir~op. The balance of the sloe is vacant. T~ere is one access £roe 42nd Ave, vhich viii be closed. Access co the sloe viii be fro~ Smda Ave., along the easterly property l~ne. 6~_ltAISAL !~EPOK~ VALUE co the subJmct pcopmccy. These =&nSm £n pc~ce &=om $2.90 co $6.3~ ps= sqv. ace foot. $&Le *~ Ls &c~oss ch& sc=eec ch& subject. ZC is & cst'nec LOCAtiOn. & fast food ChA£n *2 Are AbOUt cvs nL~es vest of sub~ecc-end vet& purchased ~o~ reta~ a~Co service use. The s~bJe¢~ proper~Y la zoned B-3, auto oriented bus,ness. Zt receives the commercial lmfluences from the s~r~oundi~S ~he p~oper~7 ~d ~e~lea~ a va~e ~a~d ~he uppe= end o~ ~he ~anle of ~he c~wab~e sa~es. . v~ch~n chLs ~rel ~nd reco~Lz~nS ch& v~r~s d~e~ences p~e~7, Lc La ~ op~n~ chac ch& va~ue of the ~and ~o~ the sub~ec~ proper~7 is $5.00 pe~ sq~e ~ooc. REQUF.~T FOR ACTION originating Department Approved for Agenda Agenda Section City Manager EDA //~-22-92 Kirk McDonald Item No. By: Management Assistant By: ~ 5 / RESOLUTION AUTHORIZING ACQUISITION OF 5501 BOONE AVENUE NORTH BY EMINENT DOMAIN PROCEEDING (#493) The enclosed resolution authorizes eminent domain proceedings to acquire the property at 5501 Boone Avenue North. This action is necessary to initiate the adult day care facility proposed by North Ridge. This action does not include any additional property, as previously discussed, in the event that the North Memorial Hospital project is completed in conjunction with the North Ridge Project. Due to the uncertainty of the North Memorial Project, consideration for taking the required property is being delayed until such time that the project may materialize. The subject property is located in the North Ridge Tax Increment Financing District. The resolution states that the EDA has determined that the acquisition of this property is reasonably necessary to the furtherance of the goals and objections of the redevelopment plan and will be for the benefit of the public health, welfare, and safety of the citizens of New Hope. The resolution authorizes the Executive Director to acquire the property by direct purchase or to commence eminent domain proceedings, to utilize the "quick-take" procedure if necessary, and to obtain additional appraisals necessary to establish fair market value and just compensation for said property. Staff recommends approval of the resolution. TO: _ __ / Review: Administration: Finance: RFA-O01 CORRICK & SONDRALL A pARTNERS;HIP OF pROFESSIONAL GORPORATIO N8 co,~CK ~w O~nCES. P~. Edinburgh Executive Office Plaza L~^L~ WILLIAM J. CORRIC K ST~, ^. so,vP~,~ P.~ 8525 Edinbrook Crossing ~VO,,E E. KES~ S~=VE. ^.SO,O,^" Suite #203 s.~o. O* OEP, BY MICHAE, R. L~FLEUR ~m'~. ~,. ~AL~CHA Brooklyn Park, Mh-lnesota 5544a WILLIAM C. STRAIT TELEPHONE (612) 425-5671 FAX (612) 425-5867 June 16, 1992 Mr. Daniel J. Donahue City Manager City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Resolution Authorizing Acquisition of 5501 Boone Avenue North By Eminent Domain Proceedings Our File No: 99.11101 Dear Dan: Please find enclosed for consideration at the June 22nd, 1992 Economic Development Authority meeting a proposed Resolution Authorizing Eminent Domain Proceedings to acquire the property at 5501 Boone Avenue North. As we have discussed, this' Resolution is necessary to initiate the adult day care facility proposed by North Ridge. Please bear in mind that it does not include a reference to the additional property we have discussed in the event that the North Memorial Hospital Project ~s done in conjunction with the North Ridge Project. Due to the uncertainty of the North Project, we have decided to delay consideration for taking the required property for that project if it does materialize. Please contact me if you have any questions. Very truly yours, Steven A. Sondrall slt Enclosure cc: Kirk McDonald Valerie Leone EDA RESOLUTION NO. 92- RESOLUTION AUTHORIZING COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY AT 5501 BOONE AVENUE NORTH, NEW HOPE, MINNESOTA BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope, Minnesota, as follows: WHEREAS, a Tax Increment Financing Plan 82-1, Redevelopment Project 82-1, and Redevelopment Plan 82-1 has been established within the City commonly referred to as the North Ridge Project and identified as Hennepin County TIF District Nos. 1603 and 1604, and WHEREAS, by a 1989 Amendment to Tax Increment Financing Plan 82-1, Redevelopment Project 82-1 and Redevelopment Plan 82-1 the following described property was included in the area subject to Redevelopment Plan 82-1: Lot 2, Block 2, Science Industry Center, That part of Lot 2 lying South of North 150 feet, thereof, and North of North line of Lot 2, Block 3, extended, (PID #06-118-21-34 0007), and WHEREAS, the Economic. Development Authority in and for the City of New Hope does hereby determine that the acquisition of this property is reasonably necessary and convenient to the furtherance of the goals and objectives of the redevelopment plan and redevelopment project, and that in its judgment the acquisition of this property will be for the benefit of the public health, welfare and safety of the citizens of New Hope, and WHEREAS, Minn. Stat. §469.101, Subd. 4 gives the Economic Development Authority in and for the City of New Hope the authority to acquire property by power of eminent domain under Minn. Stat. Chapter 117, including the power of acquiring possession of the property per the "quick-take" provisions of §117.042, if necessary to carry out the redevelopment plan and redevelopment project, and WHEREAS, the Economic Development Authority in and for the City of New Hope has determined it is necessary to acquire this property by eminent domain proceedings, and WHEREAS, said redevelopment plan and redevelopment project were established under the authority of Minn. Stat. Chap. 462 pursuant to various studies undertaken by the City of New Hope which have shown that certain redevelopment activities in the plan area are warranted and would not have occurred through private development alone. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the Executive Director is hereby directed and authorized to acquire by direct purchase or if direct purchase is unsuccessful to commence eminent domain proceedings under Minn. Stat. Chapter 117 to acquire the property at 5501 Boone Avenue North in the City of New Hope, legally described as follows: Lot 2, Block 2, Science Industry Center, That part of Lot 2 lying South of North 150 feet, thereof, and North of North line of Lot 2, Block 3, extended, (PID ~t06-118-21-34 0007). 2. That the Executive Director is further directed to utilize the "quick-take" procedure per Minn. Stat. §117.042 if in the judgment of the Executive Director it is necessary to acquire possession of the property prior to the conclusion of the eminent domain proceedings. 3. That the Executive Director is hereby directed and authorized to obtain additional appraisals necessary to establish fair market value and just compensation for said property in preparation for said eminent domain.proceedings. Adopted by the Economic Development Authority in and for the City of New Hope this day of , 1992. Edw. J. Erickson, President Attest: Daniel J. Donahue, Executive Director R.O ~LDEN LEGEND: VILLAGE LIMITS EXISTING STREETS PROPOSED STREETS ........... -:_--_:_-_-_-:-_-__-: ~NGI.~ FAM~y RESiDENTIAl- ,~'~GLE AND TWO FA~LY RESiDENTiAL MEDIU~ DENSITY RESiDENTiAl. HIGH DENSITY RESiDENTiAL R.4 SENIOR CITIZEN RESIDENTIAl. RESIDENTIAL OFFICE R-O LiMiTED NEIGHBORHOOD BUSINESS 8-1 AUTO OR;ENTED BUSiN($S 8-3 COMMUNITY BUSINESS LIMITED INDUSTRIAL GENERAL iNDUSTRIAL [ - FL~O PLAIN WET LAND W R.4 ZONING CITY of DISTRICT MAP NEW HOPE R.4 , l- SC'~=NC= INDUSTRY INDus 252 2-:,~, C I -, . .., CCNTER-~RD~... ' ::' -, RESEARC~ E 1 3 (~ 2ND ADD. 5697& N89'0~. W Plat Map ~ NORTH ~6E CARE CENTEF ADDITION