022591 EDAOFFICIAL FILE COPY
Agenda #2
CZTY Om= NEW HOPE
EDA AGENDA
EDA Regular Neeting #2
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Gary L'Herault
Commissioner Gerald Otten
Commissioner Marky Williamson
February 25, 1991
City Hall
1. Call to Order
2. Roll Call
3. Approval of Minutes of February 11, 1991
4. Resolution Authorizing Sale of Property at 7675 42nd Avenue North to
Autohaus of Minneapolis, Inc. (Project #467)
5. Other Business
6. Adjournment
Approved EDA Minutes
Meeting #1
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
February 11, 1991
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
OECEMBER 27, 1990
FINAL SITE PLAN
AUTOHAUS
Item 4
President Erickson called the meeting of the Economic
Development Authority to order at 8:00 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamson
Motion by Commissioner Otten, seconded by Commissioner
Enck to approve the EDA minutes of December 27, 1990.
Voting in favor: Otten, Erickson, Enck, Williamson;
Abstained: L'Herault; Absent: None. Motion Carried.
President Erickson introduced for discussion Item 4,
Resolution Approving Final Site Plan for Autohaus Addition
and Authorizing Autohaus Loan as Consistent with the
Development Objectives of the 42nd Avenue Tax Increment
Financing District (Project 467).
Mr. Donahue stated the Autohaus Development contract and
site plan were previously tentatively approved subject to
specific changes being made to the site plan. A revised
site plan has been submitted to the City which
incorporates all the necessary changes required from
previous approvals. It should be noted that the original
site plan showed a "showroom and display area" in the
front section of the building. Staff had requested that
the site plan be revised to show that Universal Colour Lab
is presently located there and that the area may be used
in the future for showroom and display. Other changes
involved increased landscaping, decreased sales area and
front display area, and elimination of several parking
stalls.
The City Attorney has revised the Development Contract to
show the private improvements the City expects to see made
in consideration of the loan agreement. A change has also
been made to show that the storm water drainage
improvements are public improvements which will become
property of the City after their completion.
A public hearing will be scheduled for the next Council
meeting to authorize the sale of the animal hospital
property to AutohaDs.
New Hope EDA
Page 1
February 11, 1991
Commissioner Enck pointed out that the Agreement to Raze
incorrectly shows Autohaus of Minnesota rather than
Autohaus of Minneapolis and asked that it be corrected.
Mr. McDonald stated the major changes made to the plan
include the reduction of a 15-foot display area in front
of the building; the sales area was reduced to provide a
snow storage area at back of the property; inaccessible
parking spaces were eliminated; Universal Colour Lab is
shown on the plan; and landscaping revisions.
Mr. McDonald further stated that the Planning Commission
requested additional landscaping at the westerly area
between the school district and Autohaus. He explained
that the request was for elimination of the Junipers and
replacement with taller trees such as conifers or spruce
for more effective screening. He noted that the plan
shows arborvitaes will be planted. The EDA indicated
approval of the arborvitaes plantings.
Commissioner Enck inquired regarding the parking location
for Universal Colour Lab employees. Mr. Tom Oestreich,
representing Autohaus, responded that they will continue
to park in the front of the building as in the past. He
noted the parking area is specified on their lease
agreement.
Commissioner Williamson inquired of the length of the
lease agreement with Universal Colour Lab. Mr. Oestreich
stated he believes they are close to making final
arrangements to relocate. He stated Universal Colour Lab
has six months remaining on the lease. There is a 5-year
option on the lease; however, at their last meeting,
Universal Colour Lab did not elect to exercise the option.
Commissioner Enck commented that what is requested for
approval by the EDA is not the same as what is displayed
in the site plan because Universal Colour Lab is still
located in the building.
Mr. Donahue stated language could be incorporated into the
developer's agreement to address that aspect.
Mr. Sondrall explained that the notation on the site plan
serves that purpose by indicating the existing location of
Universal Colour Lab. Essentially, what is being approved
is the potential for Autohaus to expand its development to
what is shown on the Site Plan. What the EDA should be
aware of is that there is an option that Universal Colour
New Hope EDA
Page 2
February 11, 1991
Lab could remain in that building for 5-1/2 years. The
site plan is a representation of what Autohaus would be
allowed. Any other changes would be contrary to the
development contract and the plan.
Commissioner Enck pointed out that the notation only
refers to the area inside the structure, but does not
address where Universal Colour Lab employees will park.
Mr. Sondrall stated the site plan could be modified to
show how Universal Colour Lab will fit into this plan
relative to the existing situation.
Commissioner Williamson stated she does not feel it poses
a problem. She noted the actual dimensions will not be
changed and within six months the area currently being
used as a parking lot will become the display area.
Commissioner L'Herault stated the financial data for the
loan was based upon front display area and how it related
to potential sales. He inquired how much of an impact
there would be if Universal Colour Lab decided to remain
for another five years causing Autohaus unable to display
vehicles in that area.
Mr. Oestreich commented that since Autohaus has rented the
property from Dr. Herman and has been able to display cars
in that location, their "off-street" sales volume has
increased from one percent to seven or eight percent and
with the elimination of the animal hospital building they
anticipate even higher sales. He commented that an
increase to seven to eight percent is a conservative
assumption.
Mr. Donahue reiterated that language can be contained in
the developer's agreement which points out that display
area in front of the Universal Colour Lab will not be
allowed while the property is leased by Universal Colour
Lab. Mr. Sondrall concurred and stated the development
contract and site plan can be tailored as needed. He
commented that he felt it was necessary to include the
notation on the site plan.
Mr. Oestreich indicated Autohaus would agree to language
indicating the front area will not be used for display
area while Universal Colour Lab is a tenant.
Mr. Sondrall'commented that the site plan should actually
show where the te~nt parking is located so that it is
clear and is in conformance with the development contract.
New Hope EDA
Page 3
February 11, 1991
Commissioner Enck pointed out that the parking area must
adhere to the City Code's parking requirements relating to
any structure.
Mr. Sondrall stated he is unaware how it may affect the
zoning code relative to parking but he knows Autohaus has
81 parking spaces and he is assuming it is in conformance
with code. He indicated staff will review the situation
and commented that if a number of those spaces are
allocated to Universal Colour Lab, it may change the mix.
However, by reducing the size of the existing building for
Autohaus the number of needed spaces based on gross
footage would also be reduced.
The EDA discussed parking areas for vehicle display,
customer parking, and employee parking.
Mr. Sondrall stated the closing is tentatively scheduled
for February 26.
Commissioner Otten inquired whether Mr. Oestreich feels
that in two weeks Universal Colour Lab would be in a
position to give a definite decision regarding its
relocation. He commented that if that decision is eminent,
perhaps it would be best to table the item for two weeks.
Commissioner Enck stated he is concerned that there is no
restriction in the development plan regarding different
tenants and if Universal Colour Lab moves out, Autohaus
could choose to rent the building to a different tenant.
Mr. Sondrall clarified that the development contract
specifically states that the front of the building will be
used either with Universal Colour Lab as a leasee or as
display area for Autohaus.
Mr. Tom Oestreich emphasized that Autohaus is anxious for
Universal Color Lab to relocate and would not consider a
different tenant.
Mr. Sondrall asked Mr. Oestreich if he would guarantee
that there would be no other tenant than Universal Color
Lab. Mr. Oestreich responded, "Absolutely".
President Erickson stated the amendment to the development
contract should specify that there will be no outside
parking of cars in front of Universal Color Lab until
Universal Color Lab has actually left the premises.
New Hope EDA
Page 4
February 11, 1991
EDA RES. #g1-1
Item 4
ADJOURNMENT
Commissioner Enck noted that his position remains the same
and that he is not in favor of supporting the loan request
based upon the possible adverse impacts. Commissioner
L'Herault indicated he is in agreement with Commissioner
Enck.
Commissioner Otten introduced the following resolution and
moved its adoption: "RESOLUTION APPROVING REVISED SITE
PLAN AND AUTHORIZING AUTOHAUS LOAN AS CONSISTENT WITH THE
DEVELOPMENT OBJECTIVES OF THE 42ND AVENUE TAX INCREMENT
FINANCING DISTRICT". The motion for the adoption of the
foregoing resolution was seconded by Commissioner
Williamson, and upon vote being taken thereon; the
following voted in favor thereof: Erickson, Williamson,
Otten; and the following voted against the same: Enck,
L'Herault; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the president
which was attested to by the city clerk.
Mr. Sondrall requested clarification of the motion.
President Erickson explained that the EDA has adopted the
resolution subject to amendment to the site plan and
development contract.
Motion made by Commissioner Williamson, seconded by
Commissioner L'Herault 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
8:30 p.m.
Sincerely,
Val erie Leone
City Clerk
New Hope EDA
Page 5
February 11, 1991
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
-25-91 Item
No.
By: Kirk McDonald j/
Management Assistant By:(~ 4
/
RESOLUTION AUTHORIZING SALE OF PROPERTY AT 7675 42ND AVENUE TO
AUTOHAUS OF MINNEAPOLIS, INC.
A public hearing is scheduled before the Economic Development
Authority on February 25th regarding the sale of the Herman
property to Autohaus. The City Attorney has drafted the attached
resolution authorizing the sale by the EDA.
The property would be acquired by direct purchase, the existing
structure would be razed, and the property would be incorporated
with the Autohaus property in conjunction with expansion plans.
Autohaus has agreed to purchase the property from the EDA in the
amount of $140,000.
Staff recommends closing the public hearing and adopting the
resolution.
MOTION BY ~ SECOND BY ~
ql-z
Review: Administration: Finance:
RFA-O01 ~
CO,RICK LAW OFFICES. P.A.
WILLIAM J. CORRICK
6TEVEN A. $ONDRALL. P.A.
STEVEN A. SONDRALL
MICHAEL R. LAFLEUI~
MARTIN P. MALEC;HA
WILLIAM C. STRAIT
CORRICK & SONDRALL
381 I WEST BROADWAY
ROBB~SDALE. ~A 55422
TELEPHONE (612) 533-2241
FAX ($12) 533-2243
LAVONNE E. KE6KE
SHARON D. DERBY
February 19, 1991
Mr. Daniel J. Donahue
City Manager
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE:
Autohaus Transaction/EDA Resolution Authorizing Sale
Our File No: 99.15025
Dear Dan:
A public hearing is scheduled before the Economic Development
Authority on February 25th, 1991 regarding the sale of the Herman
property to Autohaus. The hearing is required by Minn. Stat.
§469.105.
please find enclosed a proposed EDA Resolution Authorizing the Sale
pursuant to the public hearing. Adoption of the Resolution
requires only a majority vote.
Please contact me if you have any questions.
Very truly yours,
Steven A. Sondrall
slt
Enclosure
cc.'
Valerie Leone (w/enc)
Kirk McDonald (w/enc)
EDA RESOLUTION 91-
RESOLUTION AUTHORIZING SALE OF PROPERTY AT
7675 42ND AVENUE NORTH TO
AUTOHAUS OF MINNEAPOLIS, INC.
WHEREAS, the Economic Development Authority in and for the
City of New Hope is working to acquire the fee title to the
property located at 7675 42nd Avenue North, and
WHEREAS, said property will be acquired by a direct purchase
in lieu of condemnation per Minn. Stat. §117.232, and
WHEREAS, the building located on said property is found to be
a substandard building and nonconforming with the New Hope Zoning
Code, and
WHEREAS, the property is located in a redevelopment district
established pursuant to Redevelopment Plan 85-2, Redevelopment
Project 85-2 and Tax Increment Financing Plan 85-2, the
administration of which is governed by the EDA, and
WHEREAS, it is hereby determined that the most appropriate use
for said property would be to raze the existing structure located
thereon and incorporate the property into a proposed expansion of
the property immediately adjacent and west of the subject property
commonly known as the Autohaus property, and
WHEREAS, the Autohaus property is also located within the
redevelopment district referenced above, and
WHEREAS, it is hereby determined that the incorporation of the
subject property into the Autohaus expansion would facilitate and
promote the purposes of the referenced redevelopment district and
would thereby be in the best interest of the district and the City
of New Hope, and
WHEREAS, Autohaus of Minneapolis, Inc. has provided the EDA
with written plans and specifications as part of New Hope Planning
Case 89-24 to develop the subject property in accordance with the
purposes of the referenced redevelopment district in furtherance of
the aims and purposes of Minn. Stat. §§469.090 through 469.108, and
WHEREAS, Autohaus of Minneapolis, Inc. has agreed to purchase
the property from the EDA in the amount of $140,000.00, and
WHEREAS, the EDA has examined the Affidavits of Publication
establishing that this Public hearing to consider the sale of the
property at 7675 42nd Avenue North to Autohaus has been properly
noticed in accordance with Minn. Stat. §469.105, Subd. 2.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
That the written plans and specifications submitted as
part of New Hope Planning Case 89-24 are hereby accepted
and approved.
That the property located at 7675 42nd Avenue North shall
be sold to Autohaus of Minneapolis, Inc. for the purpose
of implementing the development proposed per the plans
and specifications of New Hope Planning Case 89-24 for
consideration in the amount of $140,000.00.
That the Executive Director and President are hereby
authorized to execute all purchase agreements, deeds and
other documents necessary to accomplish said acquisition
and ultimate sale of the property at 7675 42nd Avenue
North to Autohaus of Minneapolis, Inc.
Dated this day of , 1991.
Edw. J. Erickson, President
Attest:
Daniel J. Donahue, Executive Director