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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