011624 Work Session Meeting Packet
CITY COUNCIL
WORK SESSION MEETING
New Hope City Hall, 4401 Xylon Avenue North
Northwood Conference Room
Tuesday, January 16, 2024
6:00 p.m. - dinner
6:30 p.m. - meeting
Mayor Kathi Hemken
Council Member John Elder
Council Member Andy Hoffe
Council Member Michael Isenberg
Council Member Jonathan London
1. CALL TO ORDER – January 16, 2024
2. ROLL CALL
11. UNFINISHED & ORGANIZATIONAL BUSINESS
11.1 Rain Garden Cost Share Program Proposal Update (Rain Garden Alliance)
11.2 Discussion of New Hope’s Emerald Ash Borer program
11.3 Discuss Public Works Project Updates
11.4 Discussion regarding the process for recording write-in votes for local elective
office
11.5 Discuss request to allow cash transactions at pawn shops
11.6 Discuss Local Affordable Housing Aid Program
11.7 Discuss request for extension of deadline for closing on sale of property to Great
Buy Homes, Inc. at 5802 Boone Avenue North (improvement project no. 1088)
11.8 Resolution calling for a closed meeting of the New Hope City Council authorized
by Minn. Stat §13D.05, Subd. 3(a) to conduct performance evaluation of the city
manager
12. OTHER BUSINESS
13. ADJOURNMENT
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/PUBWORKS/2024/Work Session/011624/11.1 Rain garden cost share program/Q ‐ 11.1 ‐ Rain Garden Cost
Share Program Update.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Public Works
By: Bernie Weber, Public Works Director
Agenda Title
Rain Garden Cost Share Program Proposal Update (Rain Garden Alliance)
Requested Action
Staff is requesting that the Council receive an update presentation and then provide direction on a proposal for
establishing a city rain garden cost share program. This proposal was brought to city staff by residents and
members of the Meadow Lake Watershed Association and Friends of Northwood Lake Association.
Policy/Past Practice
It is a past practice of Public Works staff to update the City Council on current and upcoming projects and
proposals.
Background
Public Works staff was approached by a group of residents comprised of members of the Meadow Lake
Watershed Association and Friends of Northwood Lake Association regarding a proposal for the city to
implement a future private‐public cost share program to design and install rain gardens on private property
with the ultimate goal of improving water quality not only in both the watersheds of Meadow and Northwood
Lakes, but also the City of New Hope as a whole. The proposal utilizes various stakeholders including Metro
Blooms, a nonprofit organization who partners with communities to create resilient landscapes and clean
watersheds, to complete initial consultation and design work, and the Conservation Corps to complete
installation of program projects. The proposal has the initial goal of design and installation of five residential
rain gardens in the year 2025. Following the first year of the program, city staff would reevaluate the pilot
program outcomes and assess proceeding with the program for additional years.
The proposal was reviewed by the Citizen Advisory Commission at the December 12, 2023 meeting, and the
CAC recommended establishing a neighborhood rain garden alliance cost share program in the City of New
Hope as well as the implementation of a pilot program to begin in 2025.
Funding
The proposal requests the city provide $7,000 in program funding in 2025 to cover the expenses of project
management, site consultations, rain garden designs, and supplies including rain garden plants and mulch for
five gardens. As an added funding source, each applicant would be required to provide $500 of funding toward
their project. A proposal funding breakdown for 2025 and project timeline are included as an attachment.
If the council would like to proceed with establishing a rain garden cost share program, city staff will begin
preparations based on the Rain Garden Alliance proposal, begin to engage project partners including Metro
Blooms to develop the program, and designate $7,000 in the stormwater budget for program funding in 2025.
Attachment
Rain Garden Cost Share Proposal
Agenda Section
Work Session
Item Number
11.1
Page 2
City of New Hope
Neighborhood Rain Garden Alliance
Proposed Project Work Scope, Budget & Timeline
December 12, 2023
The RG Alliance
2023
2024
2025
City of New Hope
Meadow Lake
Watershed Association
Friends of
Northwood Lake
Adopt a Resolution
• Establish the RG Alliance
• Assign City Staff & two lake
associations to develop two rain
garden programs: (1) residential rain
gardens; and (2) curb cut rain gardens
• Allocate $7,000 in City Budget for
2025 (to install 5 residential rain
gardens)
January/February/March
• Develop residential rain garden
program
• Develop curb cut rain garden program
April thru September
• Develop education & marketing plan
for residential rain garden program
September thru December
• Recruit interested residents for
residential rain garden projects in 2025
• Work with Public Works to identify
potential curb cut rain garden projects
in 2026
October/November
• Contract with Metro Blooms to
provide project management &
technical assistance in 2025
December
• Metro Blooms develops application for
City to request funding for
Conservation Corps services in 2025
January thru March
• Meet with selected residents to
install 5 residential rain gardens
• Develop project work plan &
timeline to design and install rain
gardens
Spring/Summer
• Install rain gardens per work plan
September
• Evaluate pilot program outcomes
• Develop curb cut rain garden pilot
program & budget for 2026
• Explore curb cut rain garden
funding sources
• Allocate funds in City budget for
2026
October/November
• Contract with Metro Blooms to
provide project management &
technical assistance in 2026
December
• Metro Blooms develops application
for City to request funding for
Conservation Corps services in
2026
Page 1
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/P&R/FORESTRY/2024/2023 EAB Update/Q‐ January WS.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Public Works
and Parks & Recreation
By: Shawn Markham, Forester
Agenda Title
Discussion of New Hope’s Emerald Ash Borer program
Requested Action
Staff would like to provide the City Council with an update on progress made with the Emerald Ash Borer
program in 2023 including an updated Emerald Ash Borer Management Plan, provide an update of
Hennepin County’s financial assistance for private tree removal, and discuss a recommended contract
extension with Bratt Tree to provide tree services to New Hope in 2024‐25.
Policy/Past Practice
The City of New Hope has continually sought opportunities to better the community at large, as well as make
the community a safer and better place. Previously, the City of New Hope has developed programs to help
manage invasive species in our community.
Background
Emerald Ash Borer:
In 2010, the New Hope City Council approved the creation and implementation of a city Emerald Ash Borer
(EAB) program. The creation of the program included increased funding to fulfill goals related to control of
EAB. Since 2010, the city’s primary focus has been the removal of boulevard ash trees and replacement of
removed ash trees with trees of greater diversity to avoid problems associated with planting species
monocultures.
The city’s focus has shifted away from voluntary removal of ash trees to sanitation/removal of most public
ash trees. The city has continued removing ash trees in neighborhoods and business districts, where street
infrastructure improvements occur or in parks when improvement projects have taken place. Increased
efforts have been made to work with business owners and residents with private ash trees by getting them
removed and/or providing information to treat and potentially save infested trees.
In 2010 the Street budget had $8,333 dedicated to tree care; the Parks budget contained $750. The City Council
and city staff recognized the importance of the preservation and improvement of New Hope’s urban forest
by continually dedicating increased funds to the maintenance of public trees. In 2023, Council approved a
budget of $200,000 dedicated to tree removal and replacement with a primary focus on public ash trees and
$25,000 was budgeted for tree removals and replacements within the parks. In addition to the tree budget,
Council approved a transfer of $300,000 from the Street Infrastructure and $100,000 from the Parks
Infrastructure funds to the general fund to help address the significant number of dying ash trees in need of
removal.
Agenda Section
Work Session
Item Number
11.2
The 2024 budget includes $300,000 in the street budget, for boulevard tree removal and replacement, along
with a transfer of $200,000 from the street infrastructure budget. The 2024 parks budget has $25,000 for the
removal and replacement of trees. An additional $100,000 is being transferred from the park’s infrastructure
budget to provide needed funding for EAB management and the replacement of lost trees in the parks.
Emerald Ash Borer Management Plan
The City Council adopted an Emerald Ash Borer Management Plan in 2010. This management plan has
provided guidance for the preparation and current infestation of EAB. In 2023, staff updated the management
plan and is recommending the City Council formally adopt the updated management plan to provide
continued guidance for the next phase of the managing the invasive species.
Contract for Tree Removal and Trimming:
City staff has been working with Bratt Tree (formerly known as Tim’s Tree Service) since 2010. Staff is
recommending renewing the contract for 2024‐25. The benefits for renewing the contract include they will
commit to the same pricing since 2019, they are a larger outfit so they are able to keep up with the city
demands for EAB removals and stump removals, city staff has a good working relationship with Bratt Tree,
and they are dependable and provide good communication. Staff has also received positive feedback from
both city staff and New Hope residents regarding the professional tree services and customer service they
provide.
Attachments
Update detail
2015 ash tree map
2023 ash tree map
2010 and updated EAB management plans
2022 Justice40 map
New Hope City Council Work Session
January 16, 2024
2023 Emerald Ash Borer Program Update Detail
2023 Emerald Ash Borer
REMOVALS
The city continued the removal and replacement of ash trees in both the parks and on city
boulevards. 393 ash trees in the city Right‐of‐way were removed in 2023 and 14 non‐ash trees
were removed. In the parks, 127 ash trees were removed (13 by staff, 114 contracted removals)
and 2 non‐ash trees were removed. Non‐ash species were removed due to a hazardous
condition or severe decline in health.
As of January 1, 2024, there are an estimated 1450 boulevard and park ash trees remaining.
PLANTING
A total of 214 trees were planted this year in the city.
Replacement trees that were rejected by residents or were unable to be planted in the
boulevard, were planted at Lions, Civic Center, and Northwood parks.
TREATMENT
We did not treat any ash trees in 2023. In 2024, the city will again inject the 7 ash trees located
near the Hidden Valley Playground equipment. Ash trees need to be treated/injected every
other year.
GENERAL
The city allocated $500,000 to the street department tree budget and $125,000 for park tree
budget in 2023. The entire budget dedicated to boulevard tree removal and replacement was
exhausted. Work in the parks and at the New Hope Golf Course continued until the end of the
year. We estimate all the tree removal and replacement funds for park trees was also spent.
The City of New Hope has been awarded $358,500 in tree grant money since 2010 to aid in the
success of the EAB program, including a 2022 Hennepin County grant in the amount of $37,000
for the removal and replacement of trees in city parks in 2023 and the purchase of a Microsoft
Surface Pro tablet to perform work in the field. In 2023, grants were awarded from Hennepin
County and MN DNR for work starting in 2024.
The city’s Street Department has begun their annual tree trimming of boulevard trees. Trees are
pruned to remove deadwood, hanging branches, and/or limbs that prohibit safe vehicle and
pedestrian traffic. City staff have also removed some ash trees in commercial areas.
In 2024, the removal and replacement of ash trees in the city will continue. The primary focus
will be in the southwest and western neighborhoods of New Hope.
Trees in two neighborhoods have been marked for removal in early 2024. We would prefer to
begin removals after the 2023 Hennepin County and MNDNR grant agreements have been
executed.
Emerald Ash Borer Management Plan Update
In 2010, the New Hope City Council formally adopted the current Emerald Ash Borer
Management Plan.
New Hope’s EAB management plan outlined objectives and approaches to the anticipated
impact of the Emerald Ash Borer on our urban forest resource.
The document is now approaching 14 years old. Though much of the information is still
relevant, EAB was not present in New Hope at the time it was adopted. It is time to update our
management plan to reflect the status of EAB in our community today as management of the
pest has changed.
In 2023, staff worked on updating the EAB Management Plan according to guidelines
recommended by the United States Department of Agriculture.
Both the 2010 and proposed management plans are attached. Staff recommends Council adopt
an updated Emerald Ash Borer Management Plan in the near future.
Hennepin County Grant Funding Update for Private Ash Removals
Hennepin County recently received a Urban & Community Forestry Inflation Reduction Act grant in
the amount of $10 million from the US Forest Service. This is the first grant funding opportunity that
was made available to provide tree removal assistance of ash trees on private property.
Currently, only eligible households identified on the Justice40 map are eligible for assistance (see map
for New Hope resident eligibility).
ʺCensus tract geographical boundaries are determined by the U.S. Census Bureau once every ten years. This tool
utilizes the census tract boundaries from 2010 because they match the datasets used in the tool. The U.S. Census
Bureau will update these tract boundaries in 2020.
Under the current formula, a census tract will be identified as disadvantaged in one or more categories of criteria:
IF the tract is above the threshold for one or more environmental or climate indicators
AND the tract is above the threshold for the socioeconomic indicators
Communities are identified as disadvantaged by the current version of the tool for the purposes of the Justice40
Initiative if they are located in census tracts that are at or above the combined thresholds in one or more of eight
categories of criteria.
However, Hennepin County has requested an amendment to the grant contract, that all residents of
Hennepin County are eligible for assistance if they meet an economic threshold.
Hennepin County is still waiting to hear back from the US Forest Service about when they will be
receiving the funding and about changing the scope of the grant to be income‐based instead of just
being limited to Justice40 areas.
Tree Contract Discussion
BACKGROUND
In 2023, the city executed a contract with Bratt Tree working with the tree care services that
included an option of renewing the contract under agreeable terms by both the City of New
Hope and Bratt Tree.
Bratt Tree has agreed not to raise the rates of tree removals for 2024 and has maintained the
same tree removal/stump grinding rates since 2019. Their current rates for tree removal are
deemed very good.
10” and Under: $27/inch
11”‐20”: $38/inch
21”‐30”: $45/inch
Over 30” $54/inch
The tree removal/tree trimming contract is considered a professional services contract with the
requirements of having International Society of Arboriculture (ISA) certified staff, Minnesota
Department of Agriculture Pesticide Applicator’s Licenses and additional training in
Arboriculture, proper tree pruning and felling techniques. Companies that provide work that
are considered professional services are exempt from the traditional bidding/quoting process,
though New Hope has historically solicited quotes for tree services every 3‐4 years.
We have been working with the same contractor since 2010 and started a new contract period in
2023.
GENERAL
The current contract expires March 31, 2024, and staff recommends continuing the contract
through March 31, 2025.
Benefits to continue working with Bratt Tree:
1. Larger outfit, so able to keep up with EAB removals and stumping.
2. Redundancy in equipment‐Bratt Tree Service is the parent owner of four tree care
companies. If equipment breaks, or additional labor is needed, they have a pool of
resources.
3. More specialized equipment than many tree services.
4. Company partnerships and specialized equipment for wood disposal.
5. Other interested tree services do not have the capability of handling our current workload.
6. Provide good work and frequently complimented by residents.
7. Provide tree removal/replacement service, tree planting services and stump grinding.
8. Provide dependable and good communication.
9. They consider New Hope’s needs a priority.
New Hope
Plymouth
Crystal
Robbinsdale
Brooklyn
CenterHIGHWAY 169BOONE AVE NWINNETKA AVE N36TH AVE N
62ND AVE N
49TH AVE N
BA
S
S
L
A
K
E
FLAG AVE N32ND AVE N NEVADA AVE NQUEBEC AVE N46TH AVE N
42ND AVE N (CSA
H
9
)
59TH AVE N
40TH AVE N
47TH AVE N
32ND PL N
MEDICINE LAKE RD(CSAH 70)
54TH AVE N
50TH AVE N
28TH AVE N
45TH AVE N
29TH AVE N
30TH AVE NGETTYSBURG AVE N55TH AVE N
JORDAN AVE NWEST
BROADWA
Y
40 1/2 AVE N AQUILA AVE NENSIGN AVE NOREGON AVE N53RD AVE N
39TH AVE N
60TH AVE N
60 1/2 AVE N
XYLON AVE NHIGHWAY 169 FRONTAGEDEL DR
30TH ACE N31ST AVE NHILLSBORO AVE N61 1/2 AVE N
ZEALAND AVE NNORTHWOOD PKWYLOUISIANA AVE N56TH AVE N
58TH AVE N
SUMTER AVE N35TH AVE N
33RD AVE N
NORTHERN DR MARYLAND AVE NJERSEY AVE NINTERNATIONAL PKWYSCIENCE CENTER DR
YUKON AVE N33RD PL N UTAH AVE NCAVELL AVE N34TH AVE N
61ST AVE N
47 1/2 AVE N
HOPEWOOD LN NINDEPENDENCE AVE NELM GROVE AVEDECATUR AVE NDUDLEY AVE N
AN
G
E
L
I
N
A
D
R
VIRGINIA AVE N59TH PL N
LOUISANA AVE N38TH AVE N
48TH AVE N PENNSYLVANIA AVE NERICKSON DRRHODE ISLAND AVE NSAINT RAPHAEL DR
52ND AVE NSUMTER AVENUE NWISCONSIN AVE N
27TH PL N
57TH AVE N
38 1/2 AVE N
41ST AVE N
VALLEY PL
36 1/2
C
I
R
N
LAMPHERE DR51ST AVE N
46 1/2 AVE N
VIEWCREST LN
45 1/2 AVE N
37TH AV
E
N
LOMBARDY AVE
COUNTY ROAD 9 KENTUCKY AVE NBOO
N
E
P
L
N
26TH
ELM GROVE CT
34TH PL N
34 1/2 AVE N
FAIRVIEW AVE N
59 1/2 AVE N
RESEARCH CENTER RD E
44TH
A
V
E
N
35 1/2 AVE N
32ND CIR NMEAD
O
W
L
A
K
E
P
L
TERRA LINDA DR
48TH CIR N
43RD AVE N
41 1/2 AVE N
ALLEN CIR
SHIRL
E
Y
P
L
47 1/2 PL NWISCONSIN CIR N47 1/2 CIR NINDEPENDENCE CIR N
YUKO
N
CI
R
32ND CT NMARYLAND AVE NXYLON AVE NMARYLAND AVE NMARYLAND AVE N32ND AVE N XYLON AVE NFLAG AVE N31ST AVE N MARYLAND AVE NFLAG AVE NYUKON AVE NVIRGINIA AVE N52ND AVE N
34TH AVE N
NEVADA AVE NUTAH AVE NXYLON AVE NFLAG
AVE
NLOUISIANA AVE NYUKON AVE NPENNSYLVANIA AVE NQUEBEC AVE NNEVADA AVE NFLAG AVE NRHODE ISLAND AVE N61ST AVE N
58TH AVE NYUKON AVE NUTAH AVE NPENNSYLVANIA AVE N30TH AVE N
59TH PL N
45TH AVE N
36TH AVE NXYLON AVE NNEVADA AVE NYUKON AVE N59TH AVE N
NEVADA AVE N47TH AVE N
SUMTER AVE N33RD PL N
31ST AVE N
58TH
A
V
E
NINDEPENDENCE AVE N47TH AVE N
45TH AVE NXYLON AVE N33RD AVE N MARYLAND AVE NXYLON AVE N46TH AVE NPENNSYLVANIA AVE N0 10,000 20,000
Feet
($$¯
1:18,000 (At original document size of 11x17)
Revised: 2022-11-07 By: dmerickson
V:\1938\Clients\New_Hope\Projects\Pro\Trees_Map\Tree_Removed\Tree_Removed.aprx
Disclaimer: Stantec assumes no responsibility for data
supplied in electronic format. The recipient accepts full
responsibility for verifying the accuracy and completeness
of the data. The recipient releases Stantec, its officers,
employees, consultants and agents, from any and all
claims arising in any way from the content or provision
of the data.
SPECIES
Ash, Green
Ash, Mountain
Ash, White
Ash Trees - 2015
New Hope, Minnesota
3,284 Ash Trees
New Hope
Plymouth
Crystal
Robbinsdale
Brooklyn
CenterHIGHWAY 169BOONE AVE NWINNETKA AVE N36TH AVE N
62ND AVE N
49TH AVE N
BA
S
S
L
A
K
E
FLAG AVE N32ND AVE N NEVADA AVE NQUEBEC AVE N46TH AVE N
42ND AVE N (CSA
H
9
)
59TH AVE N
40TH AVE N
47TH AVE N
32ND PL N
MEDICINE LAKE RD(CSAH 70)
54TH AVE N
50TH AVE N
28TH AVE N
45TH AVE N
29TH AVE N
30TH AVE NGETTYSBURG AVE N55TH AVE N
JORDAN AVE NWEST
BROADWA
Y
40 1/2 AVE N AQUILA AVE NENSIGN AVE NOREGON AVE N53RD AVE N
39TH AVE N
60TH AVE N
60 1/2 AVE N
XYLON AVE NHIGHWAY 169 FRONTAGEDEL DR
30TH ACE N31ST AVE NHILLSBORO AVE N61 1/2 AVE N
ZEALAND AVE NNORTHWOOD PKWYLOUISIANA AVE N56TH AVE N
58TH AVE N
SUMTER AVE N35TH AVE N
33RD AVE N
NORTHERN DR MARYLAND AVE NJERSEY AVE NINTERNATIONAL PKWYSCIENCE CENTER DR
YUKON AVE N33RD PL N UTAH AVE NCAVELL AVE N34TH AVE N
61ST AVE N
47 1/2 AVE N
HOPEWOOD LN NINDEPENDENCE AVE NELM GROVE AVEDECATUR AVE NDUDLEY AVE N
AN
G
E
L
I
N
A
D
R
VIRGINIA AVE N59TH PL N
LOUISANA AVE N38TH AVE N
48TH AVE N PENNSYLVANIA AVE NERICKSON DRRHODE ISLAND AVE NSAINT RAPHAEL DR
52ND AVE NSUMTER AVENUE NWISCONSIN AVE N
27TH PL N
57TH AVE N
38 1/2 AVE N
41ST AVE N
VALLEY PL
36 1/2
C
I
R
N
LAMPHERE DR51ST AVE N
46 1/2 AVE N
VIEWCREST LN
45 1/2 AVE N
37TH AV
E
N
LOMBARDY AVE
COUNTY ROAD 9 KENTUCKY AVE NBOO
N
E
P
L
N
26TH
ELM GROVE CT
34TH PL N
34 1/2 AVE N
FAIRVIEW AVE N
59 1/2 AVE N
RESEARCH CENTER RD E
44TH
A
V
E
N
35 1/2 AVE N
32ND CIR NMEAD
O
W
L
A
K
E
P
L
TERRA LINDA DR
48TH CIR N
43RD AVE N
41 1/2 AVE N
ALLEN CIR
SHIRL
E
Y
P
L
47 1/2 PL NWISCONSIN CIR N47 1/2 CIR NINDEPENDENCE CIR N
YUKO
N
CI
R
32ND CT NMARYLAND AVE NXYLON AVE NMARYLAND AVE NMARYLAND AVE N32ND AVE N XYLON AVE N31ST AVE N MARYLAND AVE NFLAG AVE NVIRGINIA AVE N52ND AVE N
34TH AVE N
NEVADA AVE NUTAH AVE NXYLON AVE NFLAG
AVE
NLOUISIANA AVE NYUKON AVE NPENNSYLVANIA AVE NQUEBEC AVE N47TH AVE N
NEVADA AVE NFLAG AVE NRHODE ISLAND AVE N61ST AVE N
58TH AVE NYUKON AVE NUTAH AVE NPENNSYLVANIA AVE N30TH AVE N
59TH PL N
45TH AVE N
36TH AVE N NEVADA AVE NYUKON AVE N59TH AVE N
NEVADA AVE N47TH AVE N
SUMTER AVE N33RD PL N
31ST AVE N
58TH
A
V
E
NINDEPENDENCE AVE N47TH AVE NXYLON AVE N33RD AVE N MARYLAND AVE NXYLON AVE N46TH AVE NPENNSYLVANIA AVE N0 10,000 20,000
Feet
($$¯
1:18,000 (At original document size of 11x17)
Revised: 2023-12-19 By: dmerickson
V:\1938\Clients\New_Hope\Projects\Pro\Trees_Map\Tree_Removed\Tree_Removed.aprx
Disclaimer: Stantec assumes no responsibility for data
supplied in electronic format. The recipient accepts full
responsibility for verifying the accuracy and completeness
of the data. The recipient releases Stantec, its officers,
employees, consultants and agents, from any and all
claims arising in any way from the content or provision
of the data.
SPECIES
Ash, Green
Ash, Mountain
Ash, White
Ash Trees - 2023
New Hope, Minnesota
1,947 Ash Trees
City of New Hope Emerald Ash Borer Management Plan
As approved by City Council on July 26th, 2010
Purpose:
By implementing the provisions in this management plan, the City is attempting to mitigate the
disruption to its urban forest caused by the pending infestation of the Emerald Ash Borer (EAB).
Taking a proactive approach to this invasion will enable the City to address public and private
needs in an efficient and effective manner.
Introduction:
Emerald Ash Borer (EAB) is an introduced pest that is currently killing all species of ash trees
(Fraxinus sp) in thirteen states and two Canadian provinces. Since its discovery in Detroit, Michigan
in 2002, the insect has spread killing all the ash trees in its path. The City of New Hope must
prepare and manage for the arrival of EAB on three fronts – street trees, public property (i.e. parks)
and trees on private property. While no one can accurately determine when the insect will arrive in
New Hope, our best estimate would be as soon as 2013 from St Paul, MN but May already be in our
presence. Based upon the city’s 2004 boulevard tree inventory, the City of New Hope has
approximately 2018 boulevard ash trees which make up almost 62% of our entire boulevard tree
population. The current evidence from Michigan and Ohio show that once EAB becomes
established, it takes about five to ten years to infest and kill the majority of the ash trees in a city.
The following elements of the City’s EAB management plan have been recommended to both the
New Hope City Council, the Citizens Advisory Commission and New Hope staff, and are subject to
periodic revision as new information about the EAB becomes available. This plan is also subject to
change should state or federal policies dictate.
Administration:
The City Forester, through the Parks and Recreation Department, will be responsible for
implementing this plan and seeing that its provisions are carried out.
Communications:
The Mayor, City Council, Citizens Advisory Commission, and department heads will receive periodic
briefings through normal channels.
Action:
The City will endeavor to distribute the costs associated with certain and massive tree death over a
manageable time period, as well as lessen the social and economic impact that such an extensive
loss will have on the quality of life in our community.
This Plan applies throughout the City on all public properties where ash trees are currently
growing.
Boulevard Trees:
The City will begin by publicly announcing the policy of excluding any new ash trees on
public property and boulevards – with the recommendation that citizens and businesses
discontinue the use of ash in new plantings.
The City will remove any boulevard ash tree at citizen request.
The forestry division shall begin to remove any poor quality trees or trees in fair condition
with major defects.
Public Ash trees that are removed will receive priority in qualifying for the city’s boulevard
tree replacement program. Species diversity will be a planting objective to better protect
our community’s trees in the future. This will include planting power line compatible tree
species under energized wires.
Plantings will occur in the spring and fall per the Parks and Recreation operating
procedures.
Park Trees:
There are many mature ash trees in City parks, as well as hundreds of ash in wooded areas.
No inventory of park trees exists at this time, but it remains a goal to collect that
information in the next year (by 2011).
The forestry division shall begin to remove any poor quality trees or trees in fair condition
with major defects and replace with species rich trees.
The City will continue to cooperate with the Minnesota Department of Agriculture and
Minnesota Department of Natural Resources to establish EAB detection trees as needed in
city parks.
Ash trees in wooded areas will be left alone – unless by a bike path or structure and may
cause harm if it falls. If it is an early EAB infestation we will be removing infested trees as
needed to slow the spread to the community.
Trees on Private Property:
There are thousands of ash tree large and small on private property in the City of New
Hope. No reliable inventory exists, and ash densities vary by neighborhood.
Property owners are urged to monitor for the EAB.
City of New Hope’s ordinance will be changed to encompass the threat of the Emerald Ash
Borer and other insect pests that may threaten our urban forest resources.
The city will provide information to aid residents in making educated decisions when hiring
a tree care contractor.
The City also encourages residents to replace trees lost with species appropriate for the site,
or to plant new trees in advance of EAB infestation and ash removal as a way of tree canopy
cover and lessening the large economic and environmental impact of the Emerald Ash
Borer.
The City will conduct an updated inventory of all ash trees growing on its rights-of-way, in parks,
and on other municipal properties. For each ash tree, its location, size, and condition will be
collected. An estimated budget and timeframe will be generated from the inventory data. As time
and funding allows, the City will systematically remove all of its ash trees. Tree removal will be
prioritized with hazardous trees being removed first, requested removals by New Hope’s residents,
trees that interfere with the city’s infrastructure, followed by those that are no longer assets to the
community (dead, dying, diseased, or miss-sited). Utility contractors will be encouraged to remove
all ash within their easements as part of their normal line clearance activities. An ash tree inventory
spreadsheet or database will be created, updated, and used to prioritize and record the removal,
treatment, or status of each tree.
Strategically located non-asset ash trees will be annually selected and prepared as detection trees.
These trees will be set up before May 1st and removed for examination in Sept/Oct. If an EAB
infestation is discovered, a thorough survey of the surrounding area will be made and acted upon.
Ash wood from pruning or removals shall be inspected for EAB by looking for D-shaped exit holes
and removing the bark to find larval galleries. Other possible sources of artificial EAB importation
into the community will be monitored.
The City will seek opportunities to utilize the wood generated during the removal program. The
utilization must comply with the Minnesota Department of Agriculture’s regulations for handling
regulated materials. Wood that cannot be used for lumber, turning, firewood, or mulch, will be
disposed of according to MDA specifications. Refer to appendix for a list of companies with MDA
compliance agreements.
Training and educational information will be provided for in-house staff, tree contractors utilized
by the city of New Hope, and residents will be held to discuss the pending infestation and to provide
ash and EAB identification tips.
As the budget permits, all removed public ash trees will be replaced with non-host species that will
enhance the planting site, are appropriate for the planting site, and add to the diversity and general
health of the urban forest. Trees will be planted in accordance with the Minnesota Nursery and
Landscape Association/Minnesota Division of Forestry Tree Planting Specifications (see Appendix),
be in the 1 ¼” to 2” caliper range, and obtained from MNLA member firms. Plantings will be budget
based and prioritized by canopy cover goals as identified by the City Forester. Those areas needing
the most trees to reach their goal will be planted first, such as Residential (65% cover), Parks and
Public Lands (25%), and Central Business (10%). No plantings will be made that cannot be
adequately maintained. To the best of our ability, plantings will conform to the “10-20-30” tree
species diversity rule.
While financial, staffing, and equipment resources are focused on the EAB Management Plan some
usual services will either be delayed or put on hold indefinitely. New Hope’s annual tree pruning
program may be altered to focus on non-fraxinus species and/or temporarily postponed and
response to residential tree pruning requests will inevitably be delayed.
The City will create and maintain an EAB Informational Page on the City’s website. In the spring and
fall, as time and funding allows, the City will purchase non-EAB host, large canopy, replacement
trees. Residents and businesses interested in acquiring trees can apply for the city’s tree
replacement program. The City will provide site selection, planting, and maintenance information
to each participant in this program.
Emerald Ash Borer Informational Resources:
Department of Natural Resources: Division of Forestry
Minnesota State Forester: Dave Epperly
500 Lafayette Road
St. Paul, MN 55155
(651) 259-5300
info@dnr.state.mn.us
University of Minnesota Extension Services
Extension Professor, Entomologist: Jeff Hahn
(612) 624-4977
mailto:hahnx002@umn.edu
Minnesota Department of Agriculture
Plant protection Division
625 Robert Street North
St. Paul, MN 55155
(651) 201-6000
Minnesota State Urban Forester
Ken Holman
Minnesota DNR Forestry
500 Lafayette Road
St. Paul, MN 55155
651-259-5269
ken.holman@dnr.state.mn.us
MDA “Arrest the Pest” Hotline
Metro Area (651) 201-6684
Greater Minnesota 1 (888) 545-6684
How to Hire an Arborist:
The services of an arborist may be required if a tree is in need of pruning, fertilizing, weather-
related damage assessment, or other problem diagnosis. The homeowner should have an idea of
what needs to be done to a tree before hiring an arborist. Full-service arborists are professionals
who possess skills in planting, transplanting, pruning, fertilizing, pest management, disease
diagnosis, tree removal and stump grinding. Consulting arborists are experts who offer advice, but
do not perform services. They specialize in tree appraisals, diagnosing problems, and
recommending treatments.
Tips for Selecting an Arborist
Check in the phone directory, usually under "Tree Service." Although anyone can list
themselves in the yellow pages, a listing at least indicates some degree of permanence.
Beware of door-knockers, who are especially common after storms, when nonprofessionals
see a chance to earn some quick money. Often, storm damage creates high risk situations for
both workers and homeowners, and the opportunity for more damage to trees and shrubs if
work is not done correctly.
Never be rushed by bargains. Never pay in advance.
Ask for certificates of insurance, including proof of liability for personal and property
damage (such as your house and your neighbor's) and worker's compensation. Phone the
insurance company to verify current policy information.
Ask for local references of jobs the company or individual has done. Take a look at some,
and if possible, talk with the former client.
Determine if the arborist is a member of any professional association(s). Membership does
not guarantee quality, but lack of membership may cast doubt on the person's
professionalism.
If inquiring about a company, ask if they employ certified arborists.
The International Society of Arboriculture consists of individuals who have demonstrated
their skills and have been recognized nationally.*
Have more than one certified arborist look at the job and give estimates. Don't expect one to
lower a bid to match another's and be willing to pay for the estimate if necessary. Two or
three opinions and cost estimates are worth the extra effort.
A good arborist will offer a wide range of services such as pruning, fertilizing,
cabling/bracing, lightning protection, and pest/disease control.
A good arborist will recommend topping a tree only under rare circumstances, such as to
save the tree after severe physical damage to the crown, or for the decorative effect of
pollarding in a formal setting or restricted space. Pollarding is a severe form of heading that
produces knobs at the ends of branches.
Beware of arborists who offer to service trees in curb lawns. The trees may be the
responsibility of the local tree authority.
A conscientious arborist will not use climbing spikes if the tree is to remain in the
landscape.
Beware of an arborist who is eager to remove a living tree. Removal clearly should be the
last resort.
Price
Reputable arborists have made large investments in equipment and training. Trucks, hydraulic
booms, chippers, sprayers, stump cutters and chain saws represent major capital investments and
maintenance costs. Labor, insurance, safety training and continuing education add to the overhead.
The price charged for a job reflects all these costs as well as a reasonable margin of profit. Work is
usually priced one of two ways: as a single price for the job; or on an hourly basis plus materials.
Remember that pruning is an art. The arborist's skill and professionalism may be more important
than a low bid.
Ways to save on the cost of tree care:
Schedule work well in advance. Allowing the company to plan for your work may provide
an opportunity to save on cost.
Talk with neighbors about tree maintenance needs on their properties. An arborist may be
interested in a group job over smaller individual jobs.
Information provided by Susan R. Metzger –Ohio State University
The City of New Hope does not require tree care companies register with the city. Registration of
tree care companies may limit residents from using a particular tree care company of their choice.
Residents are asked to use caution and common sense when hiring a tree care contractor to
perform work. New Hope also recommends residents review the “how to hire an arborist” section
as a guide to better protect consumers.
Estimated Budget
Inventory
Boulevard Tree Inventory Completed Fall of 2004
Approximately 2000+ Boulevard
Ash Inventor of Public Lands including city parks to be completed spring of 2010.
Ash Removal
$80,000 over next fifteen years/private contractor removal
+tree removal by city staff in public areas
Replacement
$20,000, over next 15 years
Wood Disposal
$20,000 over next ten years
Estimated annual costs=$120,000
Estimated 15 year projected costs= $1,800,000
Page 1 of 7
EAB Management Plan – DRAFT
City of New Hope Emerald Ash Borer Management Plan
Updated 2023 ‐ DRAFT
Purpose:
By implementing the provisions in this management plan, the City of New Hope can better manage
and mitigate, the disruption to its urban forest caused by the current and continued infestation of
the emerald ash borer.
Background:
Emerald ash borer (EAB) is an introduced pest that is threatening to kill all species of ash trees
(Fraxinus sp.). As of 2023, EAB is found in thirty‐six states.
Since 2010, the City of New Hope has taken steps to both prepare for and now manage the effects
of EAB infestations. Management of EAB will work on three fronts – boulevard street trees, parks
(including public out lots) and trees on private property. Evidence from other states shows that
once EAB becomes established, it takes about five to ten years to infest and kill most of the ash
trees in a city. From year one of EAB infestation, it takes approximately 14 years to reach 100%
mortality of untreated ash trees.
The following elements of the city’s EAB management plan has been recommended to the City
Council, and staff, and are subject to periodic revision as new information about the EAB becomes
available. This plan is also subject to change should state or federal policies dictate.
New Hope’s EAB management program began in 2010. Our first positive identification of EAB was
in 2019. Recognizing the timeframe of when EAB was discovered is fundamental in understanding
the progression of the EAB infestation and projecting future management needs.
Officials who have dealt with EAB infestations elsewhere have warned that it is a fast‐paced event,
lasting perhaps 10‐20 years, before 100% tree mortality is reached. Projected curves, in terms of
ash tree mortality rates, means the loss of all untreated ash trees, including approximately 2,481
on city streets (as of September 2022), and thousands more in city parks, public lands and on
private property (treatment of ash trees for EAB does not guarantee the trees survival).
Page 2 of 7
EAB Management Plan – DRAFT
The reality, with the current rate of decline and tree death, requires that the city and residents, be
prepared to handle a glut of dying trees in a short timeframe. The consequences of not being
prepared will result in hundreds, if not thousands of dead and potentially hazardous trees in the
landscape.
Inventory and Monitoring:
A basic knowledge of current conditions of the urban forest is required to direct management
needs and goals in terms of the emerald ash borer infestation. Comprehensive, up‐to‐date, tree
inventory records are necessary to coordinate ash tree management, including prioritization of
tree removals.
Routine monitoring and inspections also play a vital role in extending the timeframe for EAB
management. Coupled with sanitation, it is likely that these efforts significantly influenced the
delay in tree mortality in New Hope. Monitoring efforts in recent years has confirmed that the EAB
infestation has now spread to 100% of the city and is outpacing the removal of known infested
trees.
As with publicly owned ash trees, private property trees will continue to become infested with
EAB, and those trees will die if property owners do not proactively deal with them either by having
them removed or by treating them with an insecticide.
The City will:
• Conduct and maintain an updated inventory of all trees growing on its rights‐of‐way, in parks,
and on other municipal properties. For each tree, its location, size, and condition will be collected.
• Continue to add park trees, in natural areas, to inventory as capacity allows.
• Complete a citywide inspection of all public trees twice per year.
• Use information to prioritize removal schedule for declining ash trees.
• Increase staff management of dying ash trees on private property that would meet the
conditions of the city’s ordinance for infested ash trees and/or hazardous trees.
Action:
The city will make best efforts to distribute the costs associated with significant tree mortality over
a manageable time, as well as lessen the social and economic impact that such an extensive loss
will have on the quality of life in our community.
This plan applies to all city owned or managed properties including parks, city owned out lots, and
city rights‐of‐way, including boulevards, where ash trees are currently growing.
Page 3 of 7
EAB Management Plan – DRAFT
As time and funding allows, the city will systematically remove all its public ash trees, unless
scientific advancements allow for sustainable and economically feasible options for the
preservation of ash trees.
While financial, staffing, and equipment resources are focused on the EAB Management Plan some
usual services will either be delayed, or staff time will be reprioritized to fit new needs and
necessities. New Hope’s annual tree pruning program may be altered to focus on non‐fraxinus
species and/or temporarily postponed and response to residential tree pruning requests will
inevitably be delayed.
Boulevard Trees:
The city will remove any boulevard ash tree at a resident’s request. Removal requests will
be prioritized based upon condition and location of the tree.
The city will prioritize structured removals of infested ash trees. Structured Removal is the
systematic removal of blocks of ash trees. It is an advantageous method of performing
higher volumes of tree removals—the necessity of revisiting the same street repeatedly
over consecutive years to remove individual ash trees is eliminated; tree and stump
removal is faster. Tree replacement is more efficient by eliminating mobilization time and
costs associated with the planting of trees at several individual locations. Individual tree
removals of poor‐quality trees or trees in fair condition with major defects will be
determined on a case‐by‐case basis.
The forestry division will seek out opportunities for ash tree removals in conjunction with
Capital Improvement Projects where tree removals have been identified as part of the
planned project.
Park Trees:
Trees growing in managed open‐space are prioritized over those in unmanaged wooded
areas, however ash growing in wood‐lines that could potentially impact managed areas,
paths, or roadways have been and will continue to be addressed.
Initially, ash trees in wooded areas will be left in a natural state, unless located near a
bike/walking path or structure and may cause harm if it falls. After prioritized trees have
been removed, natural areas will be re‐assessed to determine the need for ash tree
removals.
Page 4 of 7
EAB Management Plan – DRAFT
Trees on Private Property:
There are thousands of ash trees on private property in the City of New Hope. No reliable
inventory exists, and ash densities vary by neighborhood.
City staff will make efforts to provide the most current EAB information to residents.
Property owners are urged to monitor for the EAB.
City of New Hope’s ordinance addresses the threat of EAB and other insect pests, that may
threaten our urban forest resources, on private property.
The City will increasingly enforce its ordinance regarding dangerous trees moving forward
as more ash trees become infested and pose potential hazards to adjacent properties, both
public and private.
The City will provide information to aid residents in making educated decisions when hiring
a tree care contractor.
The City also encourages residents to replace trees lost with species appropriate for the
site, or to plant new trees in advance of EAB infestation and ash removal as a way of tree
protecting canopy cover and lessening the large economic and environmental impact of
the EAB.
Wood Management/Utilization:
The City will seek opportunities to utilize the wood generated during the removal program.
The utilization must comply with the Minnesota Department of Agriculture’s regulations
for handling regulated materials. Wood that cannot be used for lumber, turning, firewood,
or mulch, will be disposed of according to MDA specifications.
As more cities experience significant tree mortality, wood disposal will become increasingly
difficult. Partnerships with groups and organizations that utilize urban wood products will
be extremely valuable as common methods/areas of wood disposal reach capacity.
Treatment:
Since 2010, New Hope has focused efforts of removing and replacing infested ash trees and
ash trees with conditional issues rather than chemically treating EAB.
Public trees determined to be special or significant, will be evaluated on a case‐by‐case
basis to determine if EAB chemical treatment is the best option. Treatments of EAB will be
administered as a trunk injection: advantages that trunk injection provides over
conventional spray or soil drenching includes: (1) chemicals are applied more precisely and
used more efficiently; (2) spray drift is eliminated; (3) if properly applied there is a lower
Page 5 of 7
EAB Management Plan – DRAFT
risk for worker exposure; and (4) nontarget organisms are less affected reduce
environmental exposure.
EAB treatments will be non‐neonicotinoid pesticides i.e., Emamectin Benzoate, to reduce
toxicity to bee populations.
Unending chemical EAB applications/injections is not a long‐term goal. Once it has been
determined that chemical treatment is the best option for a particular tree(s),
management of the surrounding area will address long‐term plans that will lead to the
termination of chemical treatments.
Replanting:
As budget permits, public ash trees that are removed will receive priority in qualifying for
the city’s boulevard tree replacement program. Species diversity will be a planting
objective to better protect our community’s trees in the future. This will include planting
power line compatible tree species under energized wires. The city will continue to offer
replacement trees at a 1:1 ratio, replace one tree for every public ash tree removed.
In 2022, infestation levels began outpacing the City’s ability to keep up with infested public
tree removals. As a result, tree replanting will likely be delayed prioritizing the removal of
potentially hazardous infested trees.
All trees, planted by the city, will be replaced with non‐host species that will enhance the
planting site, are appropriate for the planting site, and add to the diversity and general
health of the urban forest.
Trees planted on public property, will be planted in accordance with current industry
standards, be in the 1 ¼” to 2” caliper range and obtained from locally grown sources.
Those areas needing the most trees to reach their goal will be planted first, such as
Residential (65% cover), Parks and Public Lands (25%), and Central Business (10%). No
plantings will be made that cannot be adequately maintained. To the best of our ability,
plantings will conform to the “10‐20‐30” tree species diversity rule. While it is impossible to
avoid the introduction of new pests and diseases refraining from monoculture planting
schemes can help to reduce their potential devastating impacts. The “10‐20‐30” rule states;
municipal forests should comprise no more than 10% of any particular species, 20% of any
one genus or 30% of any single family.
Partnerships:
Continued partnerships with groups such as: Hennepin County and the Minnesota
Department of Agriculture and the network of urban foresters of surrounding communities
have and will continue to be beneficial to the success of New Hope’s management of EAB.
Page 6 of 7
EAB Management Plan – DRAFT
Continue to seek out other funding opportunities such as grants or donations from various
sources and government entities.
Utility contractors will be encouraged to remove all ash within their easements as part of
their normal line clearance activities. An ash tree inventory spreadsheet or database will be
created, updated, and used to prioritize and record the removal, treatment, or status of
each tree.
Outreach:
The City has and will continue to be proactive in educating citizens on the issues of emerald ash
borer (EAB) through its outreach efforts.
EAB information is primarily disseminated to residents via the internet: The City has EAB
information on the city’s website, updates are posted on the city’s social media sites and
information is shared through the city newsletter. Local news media sources also provide stories
related to EAB in New Hope and other surrounding communities.
As new information about EAB becomes available, the city will provide updates for residents, staff,
and tree contractors utilized by the City of New Hope.
Administration:
The City Forester, through the Parks and Recreation Department, will be responsible for
implementing this plan and seeing that its provisions are carried out.
Communications:
The City Council, Citizen Advisory Commission, and staff will receive periodic briefings through
normal channels.
Budget:
The City’s tree removal and replacement budget will be reviewed and updated on an annual basis.
Information gathered from inventory data and annual monitoring will be used to determine tree
care priorities and to estimate a budget and timeframe of management activities.
Page 7 of 7
EAB Management Plan – DRAFT
Emerald Ash Borer Informational Resources:
Department of Natural Resources: Division of Forestry
Minnesota State Forester: Forrest Boe
500 Lafayette Road
St. Paul, MN 55155
(651) 259‐5300
info@dnr.state.mn.us
forrest.boe@dnr.state.mn.us
University of Minnesota Extension Services
Extension Professor, Entomologist: Jeff Hahn
(612) 624‐4977
mailto:hahnx002@umn.edu
Minnesota Department of Agriculture
Plant protection Division
625 Robert Street North
St. Paul, MN 55155
(651) 201‐6000
Minnesota State Urban Forester
Ken Holman‐Community Forestry Program Coordinator
Minnesota DNR Forestry
500 Lafayette Road
St. Paul, MN 55155
651‐259‐5269
ken.holman@dnr.state.mn.us
MDA “Arrest the Pest” Hotline
Metro Area (651) 201‐6684
Greater Minnesota 1 (888) 545‐6684
First Detector Program
Report a Pest
https://www.firstdetector.org/report‐pest
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/PUBWORKS/2024/Work Session/011624/11.3 Project Updates/Q ‐RFA 2024 Project Updates.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Public Works
By: Bernie Weber, Public Works Director
Agenda Title
Discuss Public Works Project Updates
Requested Action
Staff is requesting that the Council receive a presentation by the city engineer regarding several upcoming
projects, including the Meadow Lake Management Plan, Highway 169 Noise Wall, Highway 169 & 42nd
Avenue Bridge & Interchange, 42nd Avenue Improvements, Public Works Phase 2 Expansion, 2024‐25 Sanitary
Sewer Lining, 2024 Infrastructure Improvements, and the Highway 169 & 36th Avenue Bridge Reconstruction.
Policy/Past Practice
It is past practice of Public Works staff to update the City Council on current and upcoming projects.
Background
Meadow Lake Management Plan
Following the winter drawdown of Meadow Lake in 2021‐22, the Shingle Creek Watershed Management
Commission (SCWMC) and City of New Hope conducted an alum treatment in May 2023 to target the high
phosphorus nutrient levels in the lake that have historically caused algal blooms in the lake. An herbicide
treatment was also applied in May 2023 targeting the invasive plant curly‐leaf pondweed. Following these
treatments, nutrient levels have decreased, and the curly‐leaf pondweed population abundance decreased. The
next step in the Meadow Lake Management Plan is to continue water quality monitoring in 2024 to further
evaluate the impact of the recent treatments.
MnDOT Highway 169 Noise Wall (Bass Lake Road to 62nd Avenue)
New Look Contracting, Inc. was contracted by MnDOT to construct a standalone concrete post and wood
plank sound barrier along the east side of Highway 169 between Bass Lake Road and 62nd Avenue North. This
project was originally scheduled to be completed in 2023, but after experiencing some project delays relating to
utility conflicts now has an expected completion date of June 2024.
MnDOT Highway 169 & 42nd Avenue Bridge
On behalf of MnDOT, C.S. McCrossen completed a full reconstruction of the bridge and interchange at
Highway 169 and 42nd Avenue/Rockford Road in the cities of New Hope and Plymouth in 2023. Remaining
work in spring of 2024 consists of decorative staining of concrete, decorative railing installation, as well as the
continuation of city discussions with MNDOT on sign adjustment, and final restoration touchups.
42nd Avenue Improvements
GMH Asphalt was awarded the contract for the 42nd Avenue Improvement Project which began in June 2023.
This project consisted of a new traffic signal light and pedestrian push buttons at Boone Avenue, new
watermain from Xylon to Gettysburg Avenue, ADA ramp improvements from Gettysburg to Winnetka, a trail
on the south side of 42nd Avenue from Boone to Gettysburg Avenue, new decorative street lighting from Xylon
to Gettysburg, and a mill and overlay of 42nd Avenue from Gettysburg to Xylon Avenue. Some project delays
Agenda Section
Work Session
Item Number
11.3
occurred resulting in work resuming in spring 2024 to complete the remainder of the mill and overlay of 42nd
Avenue from Xylon to Winnetka Avenue, as well as restoration throughout the project area.
Public Works Phase 2 Expansion
Rochon Corporation was awarded the contract for the Public Works Facility Phase 2 expansion. This project is
expected to begin in 2024, and will consist of a building expansion with approximately 20,000 square‐feet of
new garage/equipment storage, renovation of the existing garage/equipment storage space to improve vehicle
circulation and equipment storage, installation of a new fuel dispensing system for diesel fuel and unleaded
gasoline, security improvements both inside and out at the building expansion, removal of existing overhead
door and enlargement of the opening, installation of electric vehicle charging stations, and pavement
replacement and site improvements on the remaining areas not addressed with the Phase 1 improvements.
2024‐25 Sanitary Sewer Lining
The city will continue its long history of completing initiatives to reduce inflow and infiltration (I/I) in our
sanitary sewer system by completing the 2024‐25 Sanitary Sewer Lining project. To save on engineering and
construction cost the 2024 and 2025 lining projects will again be bid together as one project.
2024 Infrastructure Improvements
The location of the 2024 project includes streets in the Jaycee Park Neighborhood, and at Pennsylvania Avenue
North at Oregon Avenue North. There are Municipal State Aid (MSA) streets impacted including: 36th
Avenue North between TH169 and 300‐ft west of Winnetka Avenue North, 56th Avenue North between Boone
Avenue North and Xylon Avenue North, and Xylon Avenue North from 56th Avenue North to Bass Lake
Road. There is also a smaller section of 62nd Avenue North between Utah Avenue North and Winnetka Avenue
North included in the project. Additionally, the city is partnering with the City of Crystal for a full road
reconstruction and public utility replacement on Louisiana Avenue between Medicine Lake Road and 32nd
Avenue, and on the 31st Avenue cul‐de‐sac. This portion of the project will be designed and managed by the
City of Crystal.
MnDOT Highway 169 & 36th Avenue Bridge
MnDOT is proposing replacement of the 36th Avenue bridge to be completed in 2024. The existing pedestrian
bridge will not be replaced and will remain in place as it meets clearance requirements. Meetings are starting
up related to discussions on this project. A Waiver of Municipal Consent was approved at the January 23, 2023
council meeting. MnDOT has prepared final plans for the project, and the city provided comments on
additional catch basin protection downstream of the bridge and ramps at 36th Avenue and Highway 169.
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/City Manager/2024/write‐in votes policy/ws 011624/11.4 Q ‐ election write ins.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: City Manager
By: Valerie Leone, City Clerk/Treasurer
Agenda Title
Discussion regarding the process for recording write‐in votes for local elective office
Requested Action
Staff is seeking Council’s input regarding the city’s policy for recording write‐in votes for local elective office.
Policy/Past Practice
The city must follow state statutes relative to election law.
Background
There were several new election laws adopted during the 2023 legislative session. One involves the recording of
write‐in votes for local offices as outlined in M.S.§204B.09, subdivision 3. The actual number of write‐in votes will
continue to be “counted” by the election equipment. The law change impacts the “recording”(or tallying) of write‐
in votes at the municipal level. Tallying of write‐in votes is a labor‐intensive process for election administrators
and many of the votes are frivolous (ie Mickey Mouse). The process is typically unnecessary as it does not change
election results unless a single write‐in candidate received the most votes for an office. The process requires
inspecting images of write‐in votes, deciphering handwriting, and recording the names of write‐in votes per
precinct for absentee votes and for election day votes to be completed prior to the canvas board meeting.
Option Type Impact
1
Make no changes
Write‐in votes for local offices
would be recorded (tallied).
2 Adopt resolution requiring candidates to file a written
request for the counting of write‐in votes at least 7 days
before election day
Similar rule as county, state,
federal candidates.
3 Adopt a resolution stating write‐in votes for local candidates
will only be individually recorded if the total number of
write‐in votes for that office is equal to or greater than the
fewest number of non‐write‐in votes for a ballot candidate.
Would likely eliminate the need to
tally write‐in votes for local offices
(as the number of write‐in votes is
typically low).
Staff prefers Option 3 as it would reduce the workload at the county level and local level. As an alternative, staff
would support Option 2 as the rules for local candidates would align with rules for other candidates. If Council
supports adopting a resolution it would be placed on a future meeting agenda. The resolution would remain in
effect until a subsequent resolution on the same subject is adopted.
Attachment
MS 204B.09, subd. 3
Agenda Section
Unfinished & Org
Business
Item Number
11.4
204B.09 TIME AND PLACE OF FILING AFFIDAVITS AND PETITIONS.
Subdivision 1.Candidates in state and county general elections.(a) Except as otherwise provided
by this subdivision, affidavits of candidacy and nominating petitions for county, state, and federal offices
filled at the state general election shall be filed not more than 84 days nor less than 70 days before the state
primary. The affidavit may be prepared and signed at any time between 60 days before the filing period
opens and the last day of the filing period.
(b) Notwithstanding other law to the contrary, the affidavit of candidacy must be signed in the presence
of a notarial officer or an individual authorized to administer oaths under section 358.10.
(c) This provision does not apply to candidates for presidential elector nominated by major political
parties. Major party candidates for presidential elector are certified under section 208.03. Other candidates
for presidential electors may file petitions at least 77 days before the general election day pursuant to section
204B.07. Nominating petitions to fill vacancies in nominations shall be filed as provided in section 204B.13.
No affidavit or petition shall be accepted later than 5:00 p.m. on the last day for filing.
(d) Affidavits and petitions for county offices must be filed with the county auditor of that county.
Affidavits and petitions for federal offices must be filed with the secretary of state. Affidavits and petitions
for state offices must be filed with the secretary of state or with the county auditor of the county in which
the candidate maintains residence.
(e) Affidavits other than those filed pursuant to subdivision 1a must be submitted by mail or by hand,
notwithstanding chapter 325L, or any other law to the contrary and must be received by 5:00 p.m. on the
last day for filing.
Subd. 1a.Absent candidates.(a) A candidate for special district, county, state, or federal office who
will be absent from the state during the filing period may submit a properly executed affidavit of candidacy,
the appropriate filing fee, and any necessary petitions in person to the filing officer. The candidate shall
state in writing the reason for being unable to submit the affidavit during the filing period. The affidavit,
filing fee, if any, and petitions must be submitted to the filing officer during the seven days immediately
preceding the candidate's absence from the state. Nominating petitions may be signed during the 14 days
immediately preceding the date when the affidavit of candidacy is filed.
(b) A candidate for special district, county, state, or federal office who will be absent from the state
during the entire filing period or who must leave the state for the remainder of the filing period and who
certifies to the secretary of state that the circumstances constitute an emergency and were unforeseen, may
submit a properly executed affidavit of candidacy by facsimile device or by transmitting electronically a
scanned image of the affidavit to the secretary of state during the filing period. The candidate shall state in
writing the specific reason for being unable to submit the affidavit by mail or by hand during the filing period
or in person prior to the start of the filing period. The affidavit of candidacy, filing fee, if any, and any
necessary petitions must be received by the secretary of state by 5:00 p.m. on the last day for filing. If the
candidate is filing for a special district or county office, the secretary of state shall forward the affidavit of
candidacy, filing fee, if any, and any necessary petitions to the appropriate filing officer.
Subd. 2.Other elections.Affidavits of candidacy and nominating petitions for city, town or other
elective offices shall be filed during the time and with the official specified in chapter 205 or other applicable
law or charter, except as provided for a special district candidate under subdivision 1a. Affidavits of candidacy
and applications filed on behalf of eligible voters for school board office shall be filed during the time and
with the official specified in chapter 205A or other applicable law. Affidavits of candidacy and nominating
petitions filed under this subdivision must be submitted by mail or by hand, notwithstanding chapter 325L,
Official Publication of the State of Minnesota
Revisor of Statutes
204B.09MINNESOTA STATUTES 20231
or any other law to the contrary, and must be received by the appropriate official within the specified time
for the filing of affidavits and petitions for the office.
Subd. 3.Write-in candidates.(a) A candidate for county, state, or federal office who wants write-in
votes for the candidate to be counted must file a written request with the filing office for the office sought
not more than 84 days before the primary and no later than the seventh day before the general election. The
filing officer shall provide copies of the form to make the request. The filing officer shall not accept a written
request later than 5:00 p.m. on the last day for filing a written request.
(b) The governing body of a statutory or home rule charter city may adopt a resolution governing the
counting of write-in votes for local elective office. The resolution may:
(1) require the candidate to file a written request with the chief election official no later than the seventh
day before the city election if the candidate wants to have the candidate's write-in votes individually recorded;
or
(2) require that write-in votes for an individual candidate only be individually recorded if the total
number of write-in votes for that office is equal to or greater than the fewest number of non-write-in votes
for a ballot candidate.
If the governing body of the statutory or home rule charter city adopts a resolution authorized by this
paragraph, the resolution must be adopted before the first day of filing for office. A resolution adopted under
this paragraph remains in effect until a subsequent resolution on the same subject is adopted by the governing
body of the statutory or home rule charter city.
(c) The governing body of a township, school board, hospital district, park district, soil and water district,
or other ancillary elected district may adopt a resolution governing the counting of write-in votes for local
elective office. The resolution may require that write-in votes for an individual candidate only be individually
recorded if the total number of write-in votes for that office is equal to or greater than the fewest number of
non-write-in votes for a ballot candidate.
(d) A candidate for president of the United States who files a request under this subdivision must include
the name of a candidate for vice president of the United States. The request must also include the name of
at least one candidate for presidential elector. The total number of names of candidates for presidential
elector on the request may not exceed the total number of electoral votes to be cast by Minnesota in the
presidential election.
(e) A candidate for governor who files a request under this subdivision must file jointly with another
individual seeking nomination as a candidate for lieutenant governor. A candidate for lieutenant governor
who files a request under this subdivision must file jointly with another individual seeking nomination as a
candidate for governor.
History: 1981 c 29 art 4 s 9; 1986 c 475 s 11; 1987 c 266 art 1 s 24; 1989 c 291 art 1 s 8; 1990 c 585
s 24; 1990 c 608 art 7 s 2; 1991 c 227 s 11; 2000 c 467 s 9-11; 1Sp2001 c 10 art 18 s 18,19; 2004 c 293
art 2 s 16,17; 2008 c 244 art 1 s 10; 2010 c 184 s 12; 2014 c 264 s 14; 2017 c 92 art 1 s 13; 2021 c 31 art
3 s 7; 2023 c 62 art 4 s 74,75
Official Publication of the State of Minnesota
Revisor of Statutes
2MINNESOTA STATUTES 2023204B.09
Subd.3.Write-in candidates
y
The resolution may:
or
local
y
A resolution adopted underpgp, p y g
this paragraph remains in effect until a subsequent resolution on the same subject is adopted b
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/Work Session/Pawn Shop/Pawn Shop Transactions 01‐16‐24.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Community Development
By: Jeff Alger, Community Development Specialist;
Jeff Sargent, Director of Community Development
Agenda Title
Discuss request to allow cash transactions at pawn shops
Requested Action
Staff requests to discuss We Pay More Pawn’s request to amend the City Code to allow pawn shops to pay
customers in cash when pawning items. Currently, payments must be made by check, draft, or other negotiable
instrument or order of withdrawal which is drawn against funds held by a financial institution, made payable
to the actual intended seller or borrower. A representative from the police department will be in attendance at
the meeting to help answer any questions.
Policy/Past Practice
Business license regulations and fees are reviewed periodically and amended as deemed appropriate.
Background
Representatives of We Pay More Pawn, located at 4223 Winnetka Avenue North, requested that the city
consider amending the City Code to allow the business to pay customers in cash when pawning items at the
store. Section 8‐33(o)(19) of the City Code states, “Payment. When a pawnbroker, precious metal dealer or
secondhand dealer accepts an item for purchase or as security for a loan, payment for any article purchased,
deposited, left, pledged or pawned must be made by check, draft or other negotiable instrument or order of
withdrawal which is drawn against funds held by a financial institution, made payable to the actual intended
seller or borrower. No check issued by the pawnbroker may be cashed at the pawnshop where the check has
been issued. This policy must be posted in a conspicuous place in the premises.” This provision has been in
place since 1997, when the city adopted an ordinance establishing licensing regulations for pawnbrokers,
precious metal, and secondhand dealers. The police department recently completed a review of the city’s
licensing regulations for pawn shops and determined that the We Pay More Pawn was not in compliance with
this requirement. The business has since changed its policy and has been issuing payments by check.
Representatives of We Pay More Pawn have contacted city staff and councilmembers, asserting that the
requirement puts their business at a competitive disadvantage as potential customers can drive to neighboring
cities such as Crystal, Robbinsdale, and Minneapolis to receive cash payments.
Ordinances requiring pawn shops to issue payments in the form of a check are not exclusive to New Hope. Of
the 93 Association of Metropolitan Municipalities member cities, a total of 14 require payment to the intended
seller in the form of a check. This includes the cities of Apple Valley, Blaine, Brooklyn Park, Chaska, Columbia
Heights, Cottage Grove, Dayton, Eagan, Eden Prairie, Hopkins, New Brighton, New Hope, Rosemount, and
Savage. A total of nine cities require payment in the form of a check if the amount exceeds a certain dollar
amount ($60, $250, or $500, depending on the city). Payments below that dollar amount can be made in cash.
The remainder of the member cities do not require payment by check (42 total) or do not have licensing
requirements specific to pawn shops (28 total). Requiring payment by check restricts cash payments from being
made at the store, limiting the amount of money being held at the business. It helps to ensure funds are going
Agenda Section
Work Session
Item Number
11.5
Request for Action, Page 2
directly to the intended seller or borrower, minimizes the opportunity for other crimes including robbery and
burglary, and provides an additional layer of protection for employees, customers, and neighboring businesses.
Recommendation
The city manager, police department, and community development department do not recommend any
changes to the city’s pawn shop ordinance. A representative from the police department will be in attendance
at the meeting to help answer any questions.
Attachments
Section 8‐33 of City Code (Pawnbrokers, precious metal dealers and secondhand dealers)
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 1 of 13
Sec. 8-33. Pawnbrokers, precious metal dealers and secondhand dealers.
(a) Purpose. The purpose of this section is to prevent pawn shop, precious metals and secondhand goods
businesses from being used as facilities for the commission of crime, to assure that such businesses comply
with basic consumer protection standards and to protect the public health, safety and general welfare of the
citizens of the city. The city council therefore finds consumer protection regulation is warranted in
transactions involving pawnbrokers, precious metal dealers and secondhand dealers.
(b) Definitions. The following words and terms when used in this section shall have the following meanings
unless the context clearly indicates otherwise:
Billable transaction means every reportable transaction conducted by a licensee except renewals,
redemptions, or extensions of existing pawns on items previously reported and continuously in the licensee's
possession is a billable transaction.
Minor means any person under 18 years of age.
Pawnbroker means any person or agent or employee thereof, within the city who loans money on deposits
or pledge of personal property or other valuable thing; who deals in the purchasing of personal property or other
valuable item on condition of selling that same item back again at a stipulated price; or who loans money secured
by a mortgage on personal property, taking possession of the property or any part thereof so mortgaged. To the
extent that a business includes buying personal property previously use d, rented or leased, or selling it on
consignment, the provision of this section shall be applicable. Any bank, savings and loan association or credit
union shall not be deemed a pawnbroker for purposes of this section.
Pawnshop means the location at which or premises in which a pawnbroker regularly conducts business.
Person means an individual; a partnership, including a limited partnership; a corporation including a foreign,
domestic or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization.
Precious metal dealer means any person engaged in the business of buying coins or secondhand items
containing precious metal, including, but not limited to, jewelry, watches, eating utensils, candlesticks, and
religious and decorative objects.
Reportable transaction means every transaction conducted by a licensee in which merchandise is received through
a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, is reportable
except:
(1) The bulk purchase or consignment of new or used merchandise from a merchant, manufacturer or
wholesaler having an established permanent place of business, and the retail sale of said merchandise,
provided the licensee must maintain a record of such pur chase or consignment which describes each
item, and must mark each item in a manner which relates it to that transaction record.
(2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all
applicable hold and/or redemption periods have expired.
Secondhand dealer means a person, partnership, firm or corporation whose regular business includes selling
or receiving tangible personal property (excluding motor vehicles) previously used, rented, owned, or leased. The
term "secondhand dealer" shall include pawnbroker and antique shops.
(c) License required. No person, firm or corporation shall conduct or operate the business of pawnbroker,
precious metal dealer and secondhand dealer without having first obtained a license therefor as herein
provided; or in violation of any of the provisions herein contained. No pawnbroker, precious metal dealer
and secondhand dealer license may be transferred to a different location or a different person. A separate
license is required for each place of business. A person may be issued multiple licenses i f there has been
compliance with this Code and all other county, state and federal laws for each license. The following
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 2 of 13
transactions shall be required to obtain a secondhand dealer's license but shall be exempt from the general
license restrictions set forth in subsection (o) of this section, except those restrictions set out in subsections
(o)(9) through (16) of this section. The following transactions subject to the secondhand dealer's license shall
also be exempt from the business manager requirement in subsection (e) of this section and the
investigation and billable transaction fees in subsection (j) of this section:
(1) The sale of secondhand books or magazines;
(2) The sale of secondhand clothing or linens. This does apply to the sale of secondhand sporting goods
equipment. Further, dealers of secondhand bedding must comply with Minn. Stat. §§ 325F.25 through
325F.34;
(3) The sale of secondhand kitchen or laundry appliances;
(4) The sale of secondhand furniture;
(5) Sales by charitable organizations that take secondhand goods for no compensation;
(6) A bulk sale of property from a merchant, manufacturer or wholesaler having an established place of
business or of goods sold at open sale from bankrupt stock.
(d) Exceptions to license requirement.
(1) The following transactions shall not require a precious metal dealer's license:
a. Transactions at occasional "garage" or "yard" sales, or estate sales or auctions held at the
decedent's residence, except that precious metal dealers must comply with the requirements of
Minn. Stat. §§ 325F.73 to 325F.744 for these transactions.
b. Transactions regulated by Minn. Stat. ch. 80A.
c. Transactions regulated by the Federal Commodity Futures Commission Act.
d. Transactions involving the purchase of precious metal grindings, filings, slag, sweeps, scraps or
dust from an industrial manufacturer, dental lab, dentist or agent thereof.
e. Transactions involving the purchase of photographic film such lithographic and x -ray film or silver
residue or flake covered in lithographic and x-ray film processing.
f. Transactions involving coins or bullion in ingots.
g. Transactions in which the secondhand item containing precious metal is exchanged for a new
item containing precious metal and the value of the new item exceeds the value of the
secondhand item.
h. Transactions between precious metal dealers if both dealers are licensed under Minn. Stat. §
325F.733, or if the seller's business is located outside of the state and the item is shipped from
outside the state to a dealer licensed under Minn. Stat. § 325F.733.
i. Resale transactions by an antique dealer of secondhand items containing precious metal if the
items are resold at retail in an unaltered condition except for repair, and the antique dealer paid
less than $2,500.00 for all secondhand items containing precious metals purchased by said
antique dealer within any 12 consecutive month period.
(2) The following transactions shall not require a secondhand dealer's license:
a. The sale of secondhand goods where all of the following are present:
1. The sale is held on property occupied as a residential dwelling by the seller or owned,
rented or leased by a charitable or political organization.
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 3 of 13
2. The items offered for sale are owned by the occupant.
3. That no sale exceeds a period of 72 consecutive hours.
4. That no more than two sales are held in any 12 consecutive month period at any residential
dwelling.
5. That none of the items offered for sale have been purchased for resale or received on
consignment for purpose of resale.
b. The sale of goods at an auction held by a licensed auctioneer.
c. The sale of recyclable material including, but not limited to, motor oil, aluminum, iron, glass,
plastic and paper.
d. Private occasional sales of secondhand goods.
e. The sale of used motor vehicles.
f. The sale of any item for less than $15.00 in cash, merchandise or services for merchandise
received provided:
1. The total amount paid any single person for resold merchandise does not exceed $45.00
within any 60-day period; or
2. Merchandise has not been received for resale from any single person more than three
times within any 60-day period regardless of the total value of said transactions.
g. The business of buying or selling only those secondhand goods taken as part of full payment for
new goods of greater value and where such business is incidental to and not the primary business
of a person.
h. Goods sold at an exhibition.
(e) Business manager. A person(s) designated by the licensee to operate a business in the licensee's absence. A
licensee must designate a manager to operate the licensed business if the licensee cannot provide on -site
supervisory services at the business for at least 40 hours per month.
(1) When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a
licensed business changes, the licensee must complete and submit the appropriate application, on
forms provided by the city within 14 days.
(2) Upon completion of an investigation of a new manager, the licensee must pay an amount equal to the
cost of the investigation to assure compliance with this Code. If the investigation process is conducted
solely within the state, the fee shall be $500.00. If the investigation is conducted outside the state, the
issuing authority may recover the actual investigations cost not exceeding $10,000.00.
(f) Application for license. Every application for license under this section, whether for a natural person,
partnership, corporation or other organization shall be made on a form supplied by the city and shall contain
all information on said license form as required by law.
(g) Application execution. All license applications under this section shall be signed and sworn to. Any license
obtained by use of false information shall result in the denial or revocation of a license.
(h) Application verification. All applications shall be referred to the police department for verification and
investigation of the facts set forth in the application. The police department shall make a written report and
recommendation to the city council as to issuance or nonissuanc e of the license. The city may order and
conduct such additional investigation as it deems necessary during normal business hours.
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 4 of 13
(i) Application consideration. If an application is granted for a location where a building is under construction or
not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has
been issued for the licensed premises.
(j) Fees.
(1) Application fee.
a. A nonrefundable application fee shall be as set forth in the city's fee schedule.
b. The application fee shall be paid in full before the license application is accepted.
(2) Investigation fee. A pawnbroker or precious metal dealer license applicant under this section shall pay
the city at the time an original application is submitted, a nonrefundable investigation fee as set forth
in the city's fee schedule. A secondhand dealer license applicant shall be exempt from this investigation
fee. The investigation fee is for the following costs:
a. To verify the license application; and
b. To assure compliance with this section.
(3) License fee.
a. The license fee shall be as set forth in the city's fee schedule.
b. The first annual license fee shall be paid with the application and investigation fee. The
application fee shall be credited to the first annual license fee, if the application is approved.
c. Upon rejection, denial or withdrawal of any license application, only the annual license fee shall
be refunded in full, but not the investigation or application fee.
(4) Billable transaction fee.
a. The billable transaction license fee shall be as set forth in the city's fee schedule and classified
according to the medium by which daily required reports are submitted to the New Hope Police
Department.
b. The billable transaction license fee shall reflect the cost of processing transactions and other
related regulatory expenses as determined by the city council, and shall be reviewed and
adjusted, if necessary, at least every six months. Licensees shall be notified in writing 30 days
before any adjustment is implemented. The billable transaction fee for modem transaction shall
not exceed the billable transaction fee for manual transactions.
c. Billable transaction fees shall be billed monthly and are due and payable within 30 days. Failure
to do so is a violation of this section.
(k) Bond. A pawnbroker license will not be issued unless the applicant files with the city clerk a bond with
corporate surety, cash, or a United States Government Bond in the amount of $5,000.00 for a pawnbroker,
precious metal dealer and secondhand dealer license. The bond must be conditioned on the licensee obeying
the laws and ordinances governing the licensed business and paying all fees, taxes, penalties and other
charges associated with the business. The bond must provide that it is forfeited to the c ity upon violation of
any law or ordinance.
(l) Application renewal. All licenses issued or renewed per this section shall be in accordance with section 8-2(c)
of this Code. An application for issuance or renewal of a license shall be made in such form as the city
requires. No expiration of any license shall impair or affe ct the obligation of any pre-existing lawful contract
between the licensee and any pledgor.
(m) Death of a licensee. In the case of the death of a licensee, the relative or personal representative of the
licensee may continue operation of the business for not more than 90 days after the licensee's death.
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 5 of 13
(n) Conditions for approval of license. To be eligible for or to maintain a pawnbroker, precious metal or
secondhand dealer license, a person must operate lawfully and fairly within the provisions of this section and
all other applicable laws, and:
(1) No license under this section shall be issued to an applicant who is a natural person if such applicant:
a. Is a minor at the time the application is filed;
b. Has been convicted of any crime directly related to the occupation licensed as prescribed by
Minn. Stat. § 364.03, subd. 2, unless the person has shown competent evidence of sufficient
rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minn.
Stat. § 364.03, subd. 3; or
c. Holds an intoxicating liquor license under this Code; or
d. Is not a citizen of the United States or a resident alien, or upon whom it is impractical to conduct
a background and financial investigation due to the unavailability of information; or
e. Is not of sufficient good moral character or repute as determined by the city council; or
f. Owes delinquent taxes of any kind or special assessments to any state, county, or city; or
g. Is a pawnbroker dealing in precious metals and gems and has failed to obtain a Hennepin County
license.
(2) No license under this section shall be issued to an applicant that is a partnership if such applicant has
any general partner or managing partner who:
a. Is a minor at the time the application is filed;
b. Has been convicted of any crime directly related to the occupation and the person licensed as
prescribed by Minn. Stat. § 364.03, subd. 2, unless the person has shown competent evidence of
sufficient rehabilitation and present fitness to perform the duties of a pawnbroker, as prescribed
by Minn. Stat. § 364.03, subd. 3; or
c. Holds an intoxicating liquor license under this Code; or
d. Is not a citizen of the United States or a resident alien, or upon whom it is impractical to conduct
a background and financial investigation due to the unavailability of information; or
e. Is not of sufficient good moral character or repute as determined by the city council; or
f. Owes delinquent taxes of any kind or special assessments to any state, county, or city; or
g. Is a pawnbroker dealing in precious metals and gems and has failed to obtain a Hennepin County
license.
(3) No license under this section shall be issued to an applicant that is a corporation or other organization
if such applicant has any manager, proprietor, or agent in charge of the business to be licensed who:
a. Is a minor at the time the application is filed;
b. Has been convicted of any crime directly related to the occupation licensed as prescribed by
Minn. Stat. § 364.03, subd. 2, unless the person has shown competent evidence of sufficient
rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minn.
Stat. § 364.03, subd. 3; or
c. Holds an intoxicating liquor license under this Code; or
d. Is not a citizen of the United States or a resident alien, or upon whom it is impractical to conduct
a background and financial investigation due to the unavailability of information; or
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 6 of 13
e. Is not of sufficient good moral character or repute as determined by the city council; or
f. Owes delinquent taxes of any kind or special assessments to any state, county, or city; or
g. Is a pawnbroker dealing in precious metals and gems and has failed to obtain a Hennepin County
license.
(4) Any change, directly or beneficially, in the ownership of any licensed pawnshop, precious metal or
secondhand dealer shall require the application for a new license and the new owner must satisfy all
current eligibility requirements.
(5) The following locations shall be ineligible for a license under this section:
a. No license shall be granted or renewed if the property on which the business is to be conducted
is owned by a person who is ineligible for a license under any of the requirements of this Code.
b. Where operation of a licensed premises would violate chapter 4 of this Code.
c. Where the applicant's present license was issued conditioned upon the applicant making
specified improvements to the licensed premises or the property of the licensed premises which
improvements have not been completed.
(6) The following conditions must be complied with before a location shall be eligible for a secondhand
dealer's license:
a. The receipt or transfer of all used goods to the secondhand dealer shall be conducted entirely
within the building or tenant bay. Outdoor drop-off areas shall not be allowed.
b. Outdoor storage of merchandise of any kind shall not be permitted.
c. All refuse containers, dumpsters and trash handling equipment shall be approved by the city,
maintained in good repair and shall comply with the following conditions:
1. The exterior walls or fence treatment of the trash enclosures shall be similar or
complementary to the exterior finish of the principal building.
2. Trash enclosures shall be located in the side or rear yards and meet the applicable setback
requirements.
3. Trash enclosures shall be accessible for pickup and hauling vehicles.
4. The trash enclosures shall fully screen trash receptacles from view of adjacent properties
and public rights-of-way.
d. All locations where clothing sales occur shall provide at least one accessible changing room and
restroom facility.
(7) The following additional site conditions must be complied with before a location shall be eligible for a
pawnbroker, precious metal or secondhand dealer license:
a. Applicant shall install and maintain a burglar alarm system for the business.
b. Applicant shall install and maintain an exterior and interior video surveillance system, the
specifications of which shall be subject to the approval by the police department, in the police
department's discretion, with a minimum retention period of 90 days.
(o) General license restrictions.
(1) Recordkeeping. At the time of a receipt of an item of property, whether sold or pawned, the
pawnbroker, precious metal dealer and secondhand dealer shall immediately record, using the English
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 7 of 13
language, in an indelible ink, or in a computerized record approved by the city manager, the following
information:
a. A complete and accurate description of the item of property, including, but not limited to, any
trademark, identification number, serial number, model number, brand name, or other
identifying mark on such item;
b. The date and time the item of property was received;
c. The full name, residence address, residence telephone number, address, date of birth, sex,
height, weight, race and color of hair and eyes of the pledgor or seller;
d. The amount advanced or paid;
e. The maturity date of the pawn transaction and the amount due;
f. The monthly and annual interest rates, including all pawn fees and charges; and
g. The licensee must also take color photographs or color video recording of:
1. Each customer involved in a billable transaction.
2. Every item pawned or sold that does not have a unique serial or identification number
permanently engraved or offered.
3. If a photograph is taken, it must be at least two inches in length by two inches in width and
must be maintained in such a manner that the photograph can be readily matched and
correlated with all other records of the transaction to which they relate. Such photographs
must be available to the chief of police, or the chief's designee, upon request. The licensee
must orally inform the person that he or she is being photographed and by displaying a sign
of sufficient size in a conspicuous place in the premises.
4. If a video photograph is taken, the video camera must zoom in on the person pawning or
selling the item so as to include an identifiable close -up of that person's face. Items
photographed by video must be accurately depicted. Video photographs must be
electronically referenced by time and date so they can be readily matched and correlated
with all other records of the transaction to which they relate. The licensee must orally
inform the person that he or she is being videotaped and by displaying a sign o f sufficient
size in a conspicuous place on the premises. The licensee must keep the exposed videotape
for three months.
h. Digitized photographs. Effective 90 days from the date of notification by the chief of police,
the licensee may fulfill the color photograph requirements in subsection (o)(1)g of this
section by submitting them as digital images, in a format specified b y the issuing authority,
electronically cross referenced to the reportable transaction they are associated with.
Notwithstanding the digital images may be captured from required video recordings, this
provision does not alter or amend the requirements in s ubsection (o)(1)g of this section.
(2) Printed recordkeeping. The following shall be printed on all pawn tickets:
a. The statement that "any personal property pledged to a pawnbroker within this state is subject
to sale or disposal when there has been no payment made on the account for a period of not less
than 90 days past the date of the pawn transaction, renewal, or extension; no further notice is
necessary. There is no obligation for the pledgor to redeem pledged goods."
b. The statement that "the pledgor of this item attests that it is not stolen, it has no liens or
encumbrances against it, and the pledgor has the right to sell or pawn the item."
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 8 of 13
c. The statement that "this item is redeemable only by the pledgor to whom the receipt was issued,
or any person identified in a written and notarized authorization to redeem the property
identified in the receipt, or a person identified in writing by the pledgor at the time of the initial
transaction and signed by the pledgor. Written authorization for release of property to persons
other than the original pledgor must be maintained along with the original transaction record."
d. A blank line for the pledgor's signature.
(3) Inspection of records. The pawnbroker, precious metal dealer or secondhand dealer shall make
available the information required in subsection (o)(1) of this section during business hours for
inspection by the city. The information required in subsection (o)(1) of this section shall be retained by
the pawnbroker, precious metal dealer and secondhand dealer for at least three years. These records
shall be a correct copy of its entries made of the pawn transactions.
(4) Daily report to police.
a. Method. Licensee must provide to the police department the information required in subsections
(o)(1)a through f of this section, by transferring it from their computer to the APS service
provider via modem. All required records must be transmitted completely and accurately after
the close of business each day in accordance with standards and procedures established by the
city using a dial-callback protocol or other procedures that address security concerns of the
licensee and the city. The licensee must display a sign of sufficient size, in a conspicuous place in
the premises, which informs all patrons that all transactions are reported to the police
department daily.
b. Billable transaction fees. Licensees will be charged for billable transactions at the rate for the
medium by which they were reported to the police department except:
1. If a licensee who has consistently reported via modem, is unable to successfully transfer
the required reports by modem, the licensee must provide the police department printed
copies of all reportable transactions along with the video tape(s) for that date, by 12:00
noon the next business day and must be charged at the modem rate for billable
transactions.
2. If the problem is determined to be in the licensee's system and is not corrected by the
close of the first business day following the failure, the licensee must provide the required
reports as detailed in subsection (o)(1) of this section and must be ch arged at the modem
rate for transactions through the close of the first business day following the failure, and at
the manual rate for all subsequent billable transactions until the error is corrected; or
3. If a licensee who has consistently reported via modem is unable to capture, digitize or
transmit the photographs required in subsection (o)(1)g of this section, the licensee must
immediately take all required photographs with a still camera, immediately develop the
pictures, cross reference the photographs to the correct transaction, and deliver them to
the police department by 12:00 noon the next business day. Billable transactions will be
charged at the modem rate for transactions through the close of the first business day
following the failure, and at the manual rate for all subsequent billable transactions until
the error is corrected.
(5) Police order to hold property.
a. Investigative hold. Whenever a law enforcement official from any agency notifies a pawnbroker,
precious metal dealer or secondhand dealer not to sell an item, the item must not be sold or
removed from the premises. The investigative hold shall be confirmed in writing by the
originating agency within 72 hours and will remain in effect for 15 days from the date of initial
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 9 of 13
notification, or until the investigative order is canceled, or until an order to hold/confiscate is
issued, pursuant to subsection (o)(5)b of this section, whichever comes first.
b. Order to hold. Whenever the chief of police, or the chief's designee, notifies a pawnbroker,
precious metal dealer or secondhand dealer not to sell an item, the item must not be sold or
removed from the licensed premises until authorized to be released by the chief or the chief's
designee. The order to hold shall expire 90 days from the date it is placed unless the chief of
police or the chief's designee determines the hold is still necessary and notifies the licensee in
writing.
c. Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the chief or
chief's designee may:
1. Physically confiscate and remove it from the licensed premises, pursuant to a written order
from the chief or the chief's designee; or
2. Place the item on hold or extend the hold as provided in subsection (o)(5)b of this section,
and leave it at the licensed premises.
3. When an item is confiscated, the person doing so shall provide identification upon request
of the pawnbroker, precious metal dealer or secondhand dealer, and shall provide the
licensee the name and phone number of the confiscating agency and investigato r, and the
case number related to the confiscation.
4. When an order to hold/confiscate is no longer necessary, the chief of police or the chief's
designee shall so notify the licensee.
(6) Redemption period for pawned goods. Any person pledging, pawning or depositing an item for security
must have a minimum of 90 days from the date of that transaction to redeem the item before it may
be forfeited and sold. During the 90-day holding period, items may not be removed from the licensed
location except as provided in subsection (o)(20) of this section. Licensees are prohibited from
redeeming any item to anyone other than the person to whom the receipt was issued, or to any person
identified in a written and notarized authorization to redeem the property identified in the receipt, or
to a person identified in writing by the pledgor at the time of the initial transaction and signed by the
pledgor. Written authorization for release of property to persons other than the original pledgor must
be maintained along with the original transaction record in accordance with subsection (o)(1) of this
section.
a. A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn
transaction. Pledged goods not redeemed within at least 90 days of the date of the pawn,
transaction, renewal, or extension shall automatically be forfeited to the pawnbroker, and
qualified right, title, and interest in and to the goods shall automatically vest in the pawnbroker,
precious metal dealer or secondhand dealer.
b. The licensee's right, title, and interest in the pledged goods under [subsection] a is qualified only
by the pledgor's right, while the pledged goods remain in possession of the pawnbroker, precious
metal dealer or secondhand dealer and not sold to a third party, to redeem the goods by paying
the loan plus fees and/or interest accrued up to the date of redemption.
c. A pawn transaction that involves holding only the title to property is subject to Minn. Stat. ch.
168A or 336.
(7) Holding period for sold goods. Any item sold to a pawnbroker, precious metal dealer or secondhand
dealer for which a report to the police is required shall not be sold or otherwise transferred for 31 days
after the date of the transaction. However, an individual may redeem an item 72 hours after the item
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 10 of 13
was received on deposit by the pawnbroker, precious metal dealer or secondhand dealer, excluding
Sundays and legal holidays.
(8) Receipt. The pawnbroker, precious metal dealer or secondhand dealer shall provide a receipt to the
seller or pledgor of any item of property received, sold or owned which shall include:
a. The name, address, and phone number of the pawnbroker business;
b. The date on which the item was received by the pawnbroker;
c. A description of the item received and amount paid to the pledgor or seller in exchange for the
item pawned or sold;
d. The signature of the pawnbroker agent;
e. The last regular business day by which the item must be redeemed by the pledgor without risk
that the item will be sold and the amount necessary to redeem the pawned item on that date;
f. The annual rate of interest charged on pawned items received; and
g. The name and address of the seller or pledgor.
(9) Hours of operation. No pawnbroker, precious metal dealer or secondhand dealer shall keep the
pawnbroker, precious metal or secondhand business open for the transaction of business on any day of
the week before 8:00 a.m. or after 8:00 p.m.
(10) Minors. The pawnbroker, precious metal dealer or secondhand dealer shall not purchase or receive
personal property of any nature or deposit or pledge from any minor.
(11) Inspection of items. The licensee shall, at all times during the term of the license, allow the city to enter
the licensed premises for the purpose of inspecting such premises and inspecting the items, ware, and
merchandise therein for the purpose of locating items suspected or alleged to have been stolen or
otherwise improperly disposed.
(12) Label required. Licensees must attach a label to every item at the time it is pawned, purchased or
received in inventory from any reportable transaction. Permanently recorded on this label must be the
number or name that identifies the transaction in the pawnshop's records, the transaction date, the
name of the item and the description or the model and serial number of the item as reported to the
police department, whichever is applicable, and the date the item is out of pawn or can be sold, if
applicable. Labels shall not be re-used.
(13) License display. A license issued under this section must be posted in a conspicuous place in the
premises for which it is used.
(14) Maintenance of order. A licensee under this section shall be responsible for the conduct of the
business being operated and shall maintain conditions of order.
(15) Gambling. No licensee under this section may operate or permit the operation on the licensed
premises of dice, slot machines, roulette wheels, punch boards, blackjack tables, or pinball machines
which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash.
No gambling equipment authorized under Minn. Stat. §§ 349.11 through 349.39 may be operated and
no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery
tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to
Minn. Stat. §§ 349A.01 through 349A.20.
(16) Prohibited goods. No licensee under this section shall accept any item of property which contains an
altered or obliterated serial number or "Operation Identification" number or any item of property that
has had its serial number removed.
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 11 of 13
(17) Proper identification. A licensee under this section shall not accept items of property unless the seller
or pledgor provides to the pawnbroker one of the following forms of photo identification:
a. A valid driver's license;
b. A Minnesota identification card; or
c. A photo identification issued by the seller's state of residency and current Minnesota address.
d. No other forms of identification shall be accepted.
(18) Redemption period. The date by which an item of property that has been pawned must be redeemed
by the pledgor without risk that the item will be sold must be a day on which the pawnbroker is open
for regular business.
(19) Payment. When a pawnbroker, precious metal dealer or secondhand dealer accepts an item for
purchase or as security for a loan, payment for any article purchased, deposited, left, pledged or
pawned must be made by check, draft or other negotiable instr ument or order of withdrawal which is
drawn against funds held by a financial institution, made payable to the actual intended seller or
borrower. No check issued by the pawnbroker may be cashed at the pawnshop where the check has
been issued. This policy must be posted in a conspicuous place in the premises.
(20) Business at only one place. A license under this section authorizes the licensee to carry on its business
only at the permanent place of business designated in the license. The city may issue more than one
license to a person if that person complies with this section for each license. However, upon written
request the chief of police or his designee may approve an off-site locked and secure storage facility.
The licensee shall permit inspection of the facility in accordance with subsection (o)(11) of this s ection.
All provisions of this chapter regarding record keeping and reporting apply to the facility and its
contents. Property shall be stored in compliance with all provisions of the City Code. The licensee must
either own the building in which the business is conducted and any approved off-site storage facility, or
have a lease on the business premises which extends for more than six months.
(21) Restrictions regarding multiple licenses/dealers for one location. A licensee may not conduct, operate
or engage in a secondhand dealer or precious metal dealer business out of the same location licensed
for a pawnbroker business. However, this restriction does not prevent a pawnbroker business from
selling or receiving personal property previously used, rented, owned or leased.
(22) Restrictions on weapons.
a. A pawnbroker, precious metal dealer or secondhand dealer may not receive as a pledge or
otherwise, or accept for consignment or sale any revolver, pistol, rifle, shotgun, or other firearm
unless said dealer also maintains a federal firearms dealer's license.
b. A pawnbroker, precious metal dealer or secondhand dealer may not receive as a pledge or
otherwise, or accept for consignment or sale, any sawed-off shotgun, automatic rifle, blackjack,
switchblade, or other similar illegal weapons or firearms.
(p) Restrictions regarding license transfer. Each license under this section shall be issued to the applicant only
and shall not be transferable to any other person. No licensee shall loan, sell, give or assign a license to
another person.
(q) Suspension or revocation of license.
(1) The city council may suspend or revoke a license issued under this section upon a finding of a violation
of:
a. Any of the provisions of this section; or
b. Any state statute regulating pawnbrokers, precious metal dealers or secondhand dealers.
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 12 of 13
c. Any conviction by the pawnbroker, precious metal dealer or secondhand dealer for theft,
receiving stolen property, or any other crime or violation involving stolen property shall result in
the immediate suspension pending a hearing on revocation of any license issued hereunder.
(2) Except in the case of a suspension pending a hearing or revocation, a revocation or suspension by the
city council shall be preceded by written notice to the licensee and a public hearing. The written notice
shall give at least ten days' notice of the time and place of the hearing and shall state the nature of the
charges against the pawnbroker. The council may, without any notice, suspend any license pending a
hearing on revocation for a period not exceeding 30 days. The notice may be served upon the
pawnbroker or precious metal dealer by the united states mail addressed to the most recent address of
the business in the license application.
(r) Maximum number of licenses to be issued by the city. No more than one pawnbroker license in the city shall
be issued by the city at any time and priority shall be given to qualified applicants for renewal of existing
licenses.
(s) Permitted charges.
(1) Notwithstanding any other statutes, ordinance, rule, or regulation, a pawnbroker, precious metal
dealer or secondhand dealer may contract for and receive a charge not to exceed three percent per
month of the principal amount advanced in the pawn transaction plus a reasonable fee for storage and
services. A fee for storage and services may not exceed $20.00 if the property is not in the possession
of the pawnbroker.
(2) The charge allowed under subsection (s)(1) of this section shall be deemed earned, due, and owing as
of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the
same day of the succeeding month. However, if full pay ment is made more than two weeks before the
next succeeding month, the pawnbroker, precious metal dealer or secondhand dealer shall remit one -
half of the pawnshop charge for that month to the pledgor.
(3) Interest shall not be deducted in advance, nor shall any loan be divided or split so as to yield greater
interest or fees that would be permitted upon a single, consolidated loan or for otherwise evading any
provisions of this section.
(4) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount
permitted under this section, shall be uncollectible and the pawn transaction shall be void.
(5) A schedule of charges permitted by this section shall be posted on the pawnshop premises in a place
clearly visible to the general public.
(t) Prohibited acts by licensees.
(1) No pawnbroker, precious metal dealer or secondhand dealer licensed under this section shall:
a. Lend money on a pledge at a rate of interest above that allowed by law;
b. Intentionally possess stolen goods;
c. Sell pledged goods before the time to redeem has expired;
d. Make a loan on a pledge to a minor.
(2) No licensee may receive any goods, unless the seller presents identification in the form of a valid
driver's license, a valid state identification or a photo identification issued by the seller's state of
residency and current Minnesota address.
(3) No licensee may receive any item of property which contains an altered or obliterated serial number or
"Operation Identification" number or any item of property that has had its serial number removed.
Created: 2023-10-03 09:06:00 [EST]
(Supp. No. 61)
Page 13 of 13
(u) Prohibited acts by persons seeking to pawn, sell or otherwise deposit property with licensee.
(1) No person may pawn, pledge, sell, consign, leave, or deposit any article of property not their own, nor
shall any person pawn, pledge, sell, consign, leave, or deposit the property of another, whether with
permission or without, nor shall any person pawn, pledge, sell, consign, leave, or deposit any article of
property in which another has a security interest, with any licensee.
(2) No person seeking to pawn, pledge, sell, consign, leave, or deposit any article of property with any
licensee shall give a false or fictitious name, nor give false date of birth, nor give a false or out -of-date
address of residence or telephone number, nor present a false or altered identification, or the
identification of another, to any licensee.
(v) Redemption; risk of loss. Any person to whom the receipt for pledged goods was issued, or any person
identified in a written and notarized authorization to redeem the pledged goods identified in the receipt, or
any person identified in writing by the pledgor at the time of the ini tial transaction and signed by the pledgor
shall be entitled to redeem or repurchase the pledged goods described on the ticket. In the event the goods
are lost or damaged while in possession of the pawnbroker, precious metal dealer or secondhand dealer, the
pawnbroker, precious metal dealer or secondhand dealer shall compensate the pledgor, in cash or
replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof
of compensation shall be a defense to any prosecution or civil action.
(w) Severability. If any section, subsection, sentence, clause, or phrase of this section is for any reason held to be
invalid, such decision shall not affect the validity of the remaining portions of this Code.
(x) Penalty. A violation of this section shall be a misdemeanor under Minnesota law.
(Ord. No. 15-01, §§ 1, 2, 2-9-2015; Ord. No. 16-17, § 1, 11-14-2016; Ord. No. 17-07, §§ 1, 19, 7-24-2017)
Editor's note(s)—Ord. No. 17-07, §§ 1, 19, adopted July 24, 2017, changed the title of § 8-33 from "License for
pawnbrokers, precious metal dealers and secondhand dealers" to read as herein set out.
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/Work Session/Local Affordable Housing Aid/Local Affordable Housing Aid 01‐16‐
24.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Community Development
By: Jeff Alger, Community Development Specialist;
Jeff Sargent, Director of Community Development
Agenda Title
Discuss Local Affordable Housing Aid Program
Requested Action
Staff requests to provide an update to the City Council on a new metropolitan area sales tax that will provide
direct funding to metropolitan cities for the development and preservation of affordable housing. Staff is
requesting direction on how the funds should be utilized, including the possible creation of a local housing
trust fund.
Policy/Past Practice
It is a past practice of staff to research, present options, and make recommendations to the City Council on
housing programs and the use of available funds.
Background
A new metropolitan area sales tax imposed by the Metropolitan Council on retail sales went into effect on
October 1, 2023, and will provide direct funding to metropolitan cities with populations over 10,000 for the
development and preservation of affordable housing. The local affordable housing aid will be certified and
paid to eligible cities based on each local government’s share of cost‐burdened households as determined by
the most recent estimates or experimental estimates provided by the American Community Survey, which is
conducted by the U.S. Census Bureau.
The Department of Revenue will distribute funds in two equal installments beginning in 2024, with the first
half paid on July 20 and the second half paid on December 26. Metro Cities estimates that New Hope will
receive $316,721 in aid for 2024. The city must determine how it will utilize these funds, which will continue to
be paid twice per year beyond 2024. Funds distributed through the aid program must be spent on qualifying
projects by December 31 of the fourth year after the aid was received. Funds are considered “spent” if a city
demonstrates to the Minnesota Housing Finance Agency that it could not expend funds on a qualifying project
by the deadline due to factors outside of its control. Establishing a local housing trust fund and transferring the
funds into the trust to be spent on a qualifying project at a later date would satisfy this requirement. Eligible
uses of the funds include:
1. Emergency rental assistance for households earning less than 80% of Area Median Income (AMI).
2. Funding projects through nonprofit affordable housing providers (Habitat for Humanity, Homes
Within Reach, etc.).
3. Acquisition, demolition or removal of structures, rehabilitation, or construction (household income
restriction at or below 115% AMI for homeownership or 80% AMI for rental).
4. Construction financing, permanent financing, interest rate reduction, refinancing, and gap financing to
provide affordable housing to households (household income restriction at or below 115% AMI for
homeownership or 80% AMI for rental).
Agenda Section
Work Session
Item Number
11.6
Request for Action, Page 2
5. Construction or rehabilitation of buildings containing more than four units. At least one unit or 5% of
units (whichever is greater) must be accessible units that meet sensory accessible standards.
In order to ensure funds are not lost if not spent by December 31 of the fourth year after aid was received, the
City Council may elect to establish a local housing trust. A local housing trust policy would dictate how local
affordable housing aid could be utilized. A flexible policy would allow for the City Council and staff to adapt
as opportunities and priorities change. In recent years, the city has prioritized funding of the scattered site
housing program as well as housing assistance programs through the Center for Energy and Environment
(CEE). The city has also helped fund occasional Habitat for Humanity single‐family rehabilitation projects.
Staff contacted several nearby cities to inquire how they intend to utilize local affordable housing aid.
Responses included offering income qualified home improvement grants through the CEE, deferred loan
programs with age and/or income restrictions, assisting future affordable housing developments, and
establishing housing trust funds. Most were in the process of determining how the funds would be disbursed.
The city could consider establishing new housing assistance programs that meet necessary income restrictions.
One option would be developing a new loan and/or grant program through the CEE. Programs currently
offered through the CEE include the low interest loan program, which does not have income restrictions, and
the emergency deferred loan program, which restricts income at 80% AMI. The Economic Development
Authority allocated a total of $80,000 to these programs to be utilized between 2022 and 2024. Those funds have
been depleted, however, as the low interest loans are repaid, funds are revolved back into the program and
made available to the public. There are significant costs associated with partnering with the CEE and issuing
loans. The CEE charges the city an annual $2,500 administrative fee. CEE staff informed the city that this fee
would increase to $5,000 per year if the existing contract is extended beyond 2024. There is also a $750 loan
origination fee that is charged for every loan that is issued. Although not currently offered in New Hope, the
CEE has the ability to administer grant programs as well. The cost to setup a grant program would be $500 and
there would be a $500 grant origination fee for each grant that is approved. Additionally, the CEE charges $100
per property for an inspection upon completion of the work.
The local affordable housing aid could also be utilized for scattered site housing projects, including demolition
and rebuild and/or rehabilitation. The city could also partner with Habitat for Humanity to complete additional
projects in New Hope. In either case, sale of the homes would be restricted to individuals at or below 115%
AMI for homeownership. As provided by CEE, HUD income limits for 2023 were as follows:
Family Size 115% AMI Family Size 115% AMI
1 $100,050 5 $154,350
2 $114,300 6 $165,700
3 $128,550 7 $177,200
4 $142,850 8+ $188,600
The city has sold scattered site lots to builders with income restrictions in the past. The EDA purchased 5431
Virginia Avenue North from the Twin Cities Community Land Bank with a condition requiring that the newly
constructed home be sold to a buyer with a household income at or below 115% AMI. The requirements were
specified in the Request for Proposals that was sent to builders and those submitting a proposal were required
to sign a form acknowledging an understanding of the requirement.
Request for Action, Page 3
Recommendation
It is recommended that the City Council direct staff to prepare a local housing trust policy and provide direction
of how local affordable housing aid should be utilized. The city will receive its first local affordable housing
aid payment on July 20, 2024.
Attachments
League of Minnesota Cities article
Email and estimated distribution of aid from Metro Cities
Draft ordinance establishing affordable housing trust in St. Louis Park
St. Louis Park Affordable Housing Trust Fund Policy
12/15/23, 9:58 AM Focus on New Laws: Local Affordable Housing Aid and Statewide Affordable Housing Aid - League of Minnesota Cities
https://www.lmc.org/news-publications/news/all/fonl-local-affordable-housing-aid-and-statewide-affordable-housing-aid/1/3
Focus on New Laws: Local
Affordable Housing Aid and
Statewide Affordable Housing Aid
Ð
October 30, 2023
Two new housing aid programs, now in effect, provide direct formula-based funding to
cities with populations of more than 10,000 to help develop and preserve affordable
housing.
As a part of the 2023 housing finance and policy omnibus bill, now Chapter 37 in 2023 Session
Law, and the 2023 omnibus tax bill, now Chapter 64 in 2023 Session Law, two programs were
created the provide direct funding to eligible cities for affordable housing production and
preservation.
Local Affordable Housing Aid
Chapter 37 in 2023 Session Law included a new formula-based aid program effective July 1,
2023, for all seven counties in the metropolitan area and cities of the first, second, and third
class (populations over 10,000) within the metropolitan area counties.
The aid, payable to cities and counties in 2024, is funded by a new 0.25% metropolitan area
sales tax imposed by the Metropolitan Council on retail sales made in the metropolitan
counties or to a destination in the metropolitan counties. The fee went into effect on Oct. 1,
2023.
The aid will be certified and paid to eligible cities based on each local governmentʼs share of
cost-burdened households. The number of cost-burdened households will be determined using
the most recent estimates or experimental estimates provided by the American Community
Survey, which is conducted by the U.S. Census Bureau.
Much like Local Government Aid (LGA), the Department of Revenue will distribute funds in two
equal installments in the year aid is calculated beginning in 2024 with the first half paid on July
20 and the second half on Dec. 26.
Use of Local Affordable Housing Aid
Funds distributed through this aid program must be spent on a qualifying project by Dec. 31 of
the fourth year aơer the aid was received. Funds will also be considered spent if a city
demonstrates to the Minnesota Housing Finance Agency that the city cannot expend funds on a
qualifying project by the deadline due to factors outside the control of the city. The funds will
be transferred to a local housing trust fund to be spent on a qualifying project at a later date.
12/15/23, 9:58 AM Focus on New Laws: Local Affordable Housing Aid and Statewide Affordable Housing Aid - League of Minnesota Cities
https://www.lmc.org/news-publications/news/all/fonl-local-affordable-housing-aid-and-statewide-affordable-housing-aid/2/3
Qualifying Projects
While the program is extremely flexible, the legislative intent is to aid cities in the production
and preservation of affordable housing and the provision of emergency rental assistance.
Qualifying projects include:
Emergency rental assistance for households earning less than 80% of area median income as
determined by the United States Department of Housing and Urban Development (HUD).
Financial support to nonprofit affordable housing providers.
Construction, acquisition, rehabilitation, demolition or removal of structures, construction
financing, permanent financing, interest rate reduction, refinancing, and gap financing for:
Homeownership projects, 115% of the greater of state or area median income as
determined by HUD.
Rental housing projects, 80% of the greater of state or area median income as determined
by HUD.
Emergency rental assistance for households earning less than 80% of area median income as
determined by HUD.
Use of funds for new construction or substantial rehabilitation of a building containing more
than four units. It must include the greater of at least one unit or 5% of the buildings units as
accessible units and meet sensory accessible standards.
Reporting requirements
All aid recipients must submit a report annually by Dec. 1 of each year, aơer aid is received, to
the Minnesota Housing Finance Agency on depicting qualifying projects that are planned or
completed with the use of aid and a detailed report of any unspent funds.
View information and preliminary calculations of certified aid amounts on the Minnesota
Department of Revenueʼs Local Affordable Housing Aid webpage.
Statewide Affordable Housing Aid
Like the Local Affordable Housing Aid program, the Statewide Affordable Housing Aid program
authorized in Chapter 64 of 2023 Session Law provides direct formula-based resources for
eligible cities and counties outside the seven-county metropolitan area.
Statewide Affordable Housing Aid will be paid directly to all counties, cities of the first, second,
and third class (those with populations above 10,000) based on the same cost-burden formula
as the Local Affordable Housing Aid program.
Cities in Greater Minnesota that are under 10,000 in population, will be eligible to participate in
a discretionary grant program administered by Minnesota Housing for grants of at least $25,000
to be used for the same eligible expenditures as the direct aid. Aids will be paid in two
installments on July 20 and Dec. 26 of each year except in 2023, when the entire amount of aid
will be paid on Dec. 26.
Use requirements of the Statewide Affordable Housing Aid as well as reporting requirements
are identical to the Local Affordable Housing Aid Program.
12/15/23, 9:58 AM Focus on New Laws: Local Affordable Housing Aid and Statewide Affordable Housing Aid - League of Minnesota Cities
https://www.lmc.org/news-publications/news/all/fonl-local-affordable-housing-aid-and-statewide-affordable-housing-aid/3/3
Qualifying projects are also identical with one exception — cities receiving aid under the
Statewide Affordable Housing Aid program are eligible to use the funds on market rate
residential rental housing so long as the city submits a resolution with its report to Minnesota
Housing that the vacancy rate for rental housing in the project area has been 5% or less for the
past two years, and a business within 25 miles of the proposed project with at least 20 full-time
employees provides a letter indicating that lack of housing has impacted their business.
View more information and preliminary calculations of certified aid amounts on the Minnesota
Department of Revenueʼs Statewide Affordable Housing Aid webpage.
Read more news articles
Your LMC Resource
Daniel Lightfoot
IGR Representative & Federal Relations Manager
(651) 281-1295 or (800) 925-1122
dlightfoot@lmc.org
1
Jeff Alger
Subject:FW: Housing Aid Distribution for Metropolitan Cities
Attachments:MC Housing Aid Run.pdf
From: McDonnell, Ania <ania@metrocitiesmn.org>
Sent: Tuesday, June 13, 2023 3:44 PM
Cc: Nauman, Patricia <patricia@metrocitiesmn.org>; Dorn, Jennifer <jennifer@metrocitiesmn.org>
Subject: Housing Aid Distribution for Metropolitan Cities
Good aŌernoon:
This session, the Legislature passed a housing bill with $1 billion in new funding for various housing programs. The
Legislature appropriated state funds for the programs and established a metro wide sales tax for housing needs,
including a porƟon of this tax as a local housing aid for metropolitan ciƟes.
The new law establishes a 0.25% metropolitan regional sales tax, with a porƟon of the proceeds allocated to
metropolitan ciƟes over 10,000 in populaƟon. Your city will receive a distribuƟon of aid under this legislaƟon. A
spreadsheet showing the esƟmated distribuƟon of aid by city, for 2024, is aƩached. This spreadsheet, using data from
House Research, esƟmates that ciƟes will receive $31.1 million in 2024. Metro CiƟes expects the amount to increase
over Ɵme, because collecƟons for this tax begin in October of this year, which shortens the collecƟon Ɵme frame for the
first year.
CiƟes can use this aid for emergency rental assistance, financial support to nonprofit affordable housing providers, and
projects for the construcƟon, acquisiƟon, rehabilitaƟon, demoliƟon or removal of exisƟng structures, construcƟon
financing, permanent financing, interest rate reducƟon, refinancing, and gap financing of housing. CiƟes will be able to
use this aid only for affordable housing assistance to households at 115 percent of the area median income for
homeownership projects, and 80 percent of the area median income for rental housing projects. The MN Department
of Revenue will distribute payments on the same payment schedule used for local government aid, with payments in
July and December. Metro CiƟes has asked the Department of Revenue for more clarity on the distribuƟon of aid as
they work to implement the legislaƟon. A city may transfer unspent funds to a local housing trust fund if they are unable
to expend funds as otherwise provided for that are due to factors outside the control of the city.
CiƟes must spend this aid by December 31st in the third year following the year aŌer the aid was received. Beginning in
2025, ciƟes must submit an annual report with documentaƟon on any unspent funds, and documentaƟon of qualifying
projects completed or planned. This report will be due by December 1st of each year (starƟng in 2025) to the Minnesota
Housing Finance Agency. AddiƟonally, the new law sƟpulates that a county that receives local housing aid will
regularly consult with the local governments in the jurisdicƟons of which its qualifying projects are planned or located.
Metro CiƟes will work with Minnesota Housing this summer to gather addiƟonal informaƟon and assistance for ciƟes on
how to maximize the use of this aid as well as other funds that were allocated to MN Housing this session. We would
welcome your iniƟal feedback or quesƟons this iniƟal informaƟon. Please feel free to share any feedback or quesƟons by
replying to this email.
If you are aƩending the LMC conference next week, we hope to see you at the Metro CiƟes hosted breakfast on Friday,
June 23rd!
Sincerely,
Ania McDonnell
2
Government Relations Specialist
Metro Cities (Association of Metropolitan Municipalities)
145 University Ave West
St. Paul, MN 55103
651‐215‐4001
ania@metrocitiesmn.org
www.MetroCitiesMN.org
Projected 2024 Local Housing Aid
Metro Cities Distribution
City 2021
Population
Cost Burdened
Units Distribution Factor Local Affordable
Housing Aid
ANDOVER 32,708 1,701 0.0058 $178,392
ANOKA 18,041 2,036 0.0069 $213,525
APPLE VALLEY 56,318 4,986 0.0169 $522,905
BLAINE 70,979 5,555 0.0188 $582,578
BLOOMINGTON 90,974 10,451 0.0354 $1,096,045
BROOKLYN CENTER 33,585 3,585 0.0121 $375,975
BROOKLYN PARK 86,106 8,984 0.0304 $942,193
BURNSVILLE 64,627 7,105 0.0241 $745,134
CHAMPLIN 23,786 2,145 0.0073 $224,956
CHANHASSEN 25,936 2,204 0.0075 $231,144
CHASKA 27,931 2,462 0.0083 $258,201
COLUMBIA HEIGHTS 21,859 2,480 0.0084 $260,089
COON RAPIDS 64,128 6,350 0.0215 $665,954
COTTAGE GROVE 39,605 2,232 0.0076 $234,080
CRYSTAL 23,083 2,366 0.0080 $248,133
EAGAN 69,086 6,251 0.0212 $655,571
EAST BETHEL 11,791 405 0.0014 $42,474
EDEN PRAIRIE 64,142 5,011 0.0170 $525,527
EDINA 53,572 6,320 0.0214 $662,808
FARMINGTON 23,654 1,773 0.0060 $185,943
FOREST LAKE 20,991 2,049 0.0069 $214,888
FRIDLEY 29,536 2,967 0.0101 $311,163
GOLDEN VALLEY 22,334 2,444 0.0083 $256,314
HAM LAKE 16,489 1,179 0.0040 $123,647
HASTINGS 22,303 2,142 0.0073 $224,641
HOPKINS 18,926 3,451 0.0117 $361,922
HUGO 16,071 1,059 0.0036 $111,062
INVER GROVE HEIGHTS 35,743 3,731 0.0126 $391,287
LAKE ELMO 12,655 666 0.0023 $69,846
LAKEVILLE 72,135 3,764 0.0128 $394,748
LINO LAKES 21,236 1,577 0.0053 $165,387
LITTLE CANADA 10,766 1,528 0.0052 $160,248
MAPLE GROVE 70,247 5,021 0.0170 $526,575
MAPLEWOOD 42,139 4,089 0.0139 $428,832
MENDOTA HEIGHTS 11,652 746 0.0025 $78,236
MINNEAPOLIS 434,346 59,676 0.2022 $6,258,497
MINNETONKA 54,704 5,972 0.0202 $626,311
6/13/2023
City 2021
Population
Cost Burdened
Units Distribution Factor Local Affordable
Housing Aid
MOUNDS VIEW 13,133 1,239 0.0042 $129,940
NEW BRIGHTON 23,705 2,687 0.0091 $281,798
NEW HOPE 21,870 3,020 0.0102 $316,721
NORTH ST PAUL 12,397 1,395 0.0047 $146,300
NORTHFIELD 20,547 1,619 0.0055 $169,792
OAKDALE 28,135 3,489 0.0118 $365,907
PLYMOUTH 81,184 6,681 0.0226 $700,667
PRIOR LAKE 27,832 2,139 0.0072 $224,327
RAMSEY 28,520 2,114 0.0072 $221,705
RICHFIELD 36,661 4,323 0.0146 $453,373
ROBBINSDALE 14,838 1,900 0.0064 $199,262
ROGERS 13,905 595 0.0020 $62,400
ROSEMOUNT 26,133 1,524 0.0052 $159,829
ROSEVILLE 36,440 3,674 0.0124 $385,309
SAINT LOUIS PARK 50,144 5,932 0.0201 $622,116
SAVAGE 32,516 2,777 0.0094 $291,237
SHAKOPEE 45,593 3,572 0.0121 $374,612
SHOREVIEW 26,967 2,309 0.0078 $242,155
SOUTH ST PAUL 20,745 2,501 0.0085 $262,291
ST PAUL 312,040 40,122 0.1359 $4,207,779
STILLWATER 19,464 1,726 0.0058 $181,014
VADNAIS HEIGHTS 13,080 1,414 0.0048 $148,293
VICTORIA 10,968 319 0.0011 $33,455
WACONIA 13,297 1,360 0.0046 $142,629
WEST ST PAUL 20,882 3,254 0.0110 $341,262
WHITE BEAR LAKE 25,067 2,908 0.0099 $304,975
WOODBURY 75,723 5,727 0.0194 $600,617
TOTAL
Projection provided by House Research staff. Analysis assumes $31.125 million available for city distributions
in 2024.
$31,124,996
Ordinance No. ___-18
An ordinance establishing an
affordable housing trust fund
The City of St. Louis Park does ordain:
Section 1. Definitions. The following definitions apply in this Ordinance.
Persons of very low income means families and individuals whose incomes do not exceed
50 percent of area median income, as median income was most recently determined by the
United States Department of Housing and Urban development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of low income means families and individuals whose incomes do not exceed 80
percent of the area median income, as median income was most recently determined by the
United States Department of Housing and Urban development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of moderate income means families and individuals whose incomes exceed 80
percent, but do not exceed 120 percent, of area median income, as median income was most
recently determined by the United States Department of Housing and Urban development for the
Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as
adjusted for smaller and larger families.
SECTION 2. Pursuant to the authority granted to the city under Minnesota Statutes
Section 462C.16, an affordable housing trust fund is established to provide loans and grants to
for-profit and non-profit housing developers for the acquisition and capital and soft costs
necessary for the creation of new affordable renter and owner-occupied housing, for the
rehabilitation and preservation of existing multi-family residential rental housing including
Naturally Occurring Affordable Housing (NOAH) and rental assistance and homeownership
assistance to persons of very low, low and moderate income.
SECTION 3. The Affordable Housing Trust Fund shall be funded by an annual budgeted
allocation of funds from the city’s Housing and Redevelopment Authority (HRA) levy as approved
by the city council. Other sources of funding may include, but are not limited to:
(a) Private cash donations from individuals and corporations designated for the
Affordable Housing Trust Fund.
DRAFT
(b) Payments in lieu of participation in current or future affordable housing programs.
(c)Matching funds from a federal or state affordable housing trust fund; or a state
program designated to fund an affordable housing trust fund.
(d) Principal and interest from Affordable Housing Trust Fund loan repayments and all
other income from Trust Fund activities.
(e) The sale of real and personal property.
(f) Local government appropriations, development fees and other funds as
designated from time to time by the city council.
(g) Tax Increment Finance (TIF) pooled funds.
SECTION 4. The city may use money from the Affordable Housing Trust Fund to assist
proposed projects or programs to develop or preserve affordable housing for persons of very low,
low and moderate income to include:
(a) Making loans at interest rates below or at market rates in order to strengthen the
financial feasibility of proposed projects.
(b) Guaranteeing of loans.
(c)Providing gap financing for affordable housing developments.
(d) Financing the acquisition, demolition, and disposition of property for affordable
housing projects.
(e) Financing construction of public improvements and utilities to aid proposed
affordable residential developments.
(f) Financing the rehabilitation, remodeling, or new construction of affordable
housing.
(g) Tenant and project based rental assistance.
(h) Funding for acquisition and rehab in conjunction with related to housing trust fund
projects.
(i) Funding to facilitate affordable homeownership opportunities including down
payment assistance, second mortgages, closing costs, etc.
DRAFT
(j) Administrative costs associated with affordable housing programs.
(k) Interim financing of public costs for affordable housing projects in anticipation of a
permanent financing source (i.e. construction financing, bond sale, etc.)
(l) Other uses as permitted by law and approved by the city council.
SECTION 5. The city shall determine the terms and conditions of repayment of loans and
grants from the Affordable Housing Trust Fund including the appropriate security and interest, if
any, should repayment be required. Interest on loans and grants shall be as established by the
city from time to time or at the time of approval of a specific project or program.
SECTION 6. The Affordable Housing Trust Fund shall report annually to the city on the
use of the Affordable Housing Trust Fund account including the number of loans and grants
made, the number and types of residential units assisted through the account, and the number
of households for whom rental assistance payments were provided. The city shall post the
report on its Web site.
SECTION 7. This Ordinance shall take effect after passage and publication.
Reviewed for administration: Adopted by the City Council (date)
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest: Approved as to form and execution:
Melissa Kennedy, City Clerk Soren Mattick, City Attorney
First Reading October 1, 2018
Second Reading October 15, 2018
Date of Publication October 25, 2018
Date Ordinance takes effect November 9, 2018
DRAFT
October 15, 2021
City of St. Louis Park
Affordable Housing Trust Fund Policy
I. PURPOSE
The City of St. Louis Park has established an Affordable Housing Trust Fund to provide a
source of funds to facilitate the housing needs of low - and moderate-income individuals
and families of the City. The Affordable Housing Trust Fund shall be a permanent
endowment and continually renewable source of revenue to provide loans, loan
guarantees and grants to for-profit and non-profit housing developers for capital and soft
costs necessary for 1) the creation of new affordable rental and owner-occupied housing;
2) for the rehabilitation and preservation of existing multi-family residential rental
housing including Naturally Occurring Affordable Housing (NOAH); and 3) rental
assistance and homeownership assistance to low- and moderate-income individuals and
families.
This policy is intended to set forth the general requirements and guidelines regarding the
use of the Affordable Housing Trust Fund. The city council may modify the terms at any
time.
II. FUNDING THE AFFORDABLE HOUSING TRUST FUND ACCOUNT
The primary source of funding for the Affordable Housing Trust Fund is an annual
budgeted allocation of funds from the city’s Housing and Redevelopment Authority (HRA)
Tax Levy as approved by the city council. Other sources of funding for the Affordable
Housing Trust Fund may include, but are not limited to the following:
1. Private cash donations from individuals and corporations designated for the
Affordable Housing Trust Fund.
2. Payments in lieu of participation in current or future affordable housing programs,
as allowed.
3. Matching funds from a federal or state affordable housing trust fund; or a state
program designated to fund an affordable housing trust fund.
4. Principal and interest from Affordable Housing Trust Fund loan repayments and
all other income from Trust Fund activities.
5. The sale of real and personal property.
6. Federal and state grants.
7. Local government appropriations, development fees and other funds as
designated from time to time by the City Council.
8. Tax Increment Finance (TIF) pooled funds.
City staff is directed to take all actions necessary to capitalize and maintain the fund
balance in the Affordable Housing Trust Fund to the extent that funds are subject to
restrictions as to their use by virtue of the source of such funds. The Affordable Housing
Page 2 of 14
Trust Fund will contain sub-accounts to ensure that such restrictions as to the reuse of
the funds are met.
III. OBJECTIVES
The objective of the Affordable Housing Trust Fund is to assist in funding programs and
projects that create new affordable rental and homeownership housing opportunities
and to rehabilitate and preserve existing affordable housing units in St. Louis Park.
Initiatives will strive to provide balanced and sustainable affordable housing options
responsive to the present and future diversified needs in the community for very low-,
low - and moderate-income households including: persons on fixed incomes, such as
seniors and persons with disabilities; young families just starting out; indigenous persons;
persons of color; and veterans.
The Affordable Housing Trust fund will promote community revitalization and
reinvestment by creating and preserving viable, safe and well-maintained affordable
housing developments and expanding options for affordable homeownership for very
low -, low - and moderate -income households.
IV. USE OF THE AFFORDABLE HOUSING TRUST FUND
As a matter of policy, the Affordable Housing Trust Fund will only be used to assist
proposed projects or programs to develop or preserve affordable housing opportunities
for very low -, low - and moderate -income individuals and families.
The following general guidelines will be followed in connection with the use of funds from
the Affordable Housing Trust Fund:
1. The types of uses of the Affordable Housing Trust Fund will include, but not be
limited to the following: (i) the making of loans at interest rates below or at
market rates, including no-interest, deferred, and forgivable loans, in order to
strengthen the financial feasibility of proposed projects; (ii) the guaranteeing of
loans; (iii) the provision of gap financing for affordable housing developments; (iv)
the financing of acquisition, demolition, and disposition; (v) the financing of the
construction of public improvements and utilities to aid proposed affordable
residential developments; (vi) the financing of rehabilitation, remodeling, or new
construction of affordable housing; (vii) tenant and project based rental
assistance; (viii) administrative costs associated with affordable housing programs
(not to exceed 10 percent of the fund’s balance); and (ix) any other uses as
permitted by applicable law and approved by the council.
2. The Affordable Housing Trust Fund may be used to provide interim financing of
public cost for affordable housing projects in anticipation of a permanent
financing source (i.e. construction financing, bond sale, etc.).
3. To the extent possible the Affordable Housing Trust Fund will be secured by liens,
letters of credit, tax increment, or other forms of reasonable security.
Page 3 of 14
4. Consideration regarding the establishment of applicable terms on loans from the
Affordable Housing Trust Fund, including interest rates and deferral provisions,
will be established by the city at the time of approval of a specific project or
program.
V. PROCESS
In establishing projects and programs to be financed using the Affordable Housing Trust
Fund, the city shall to the extent possible:
1. Establish guidelines and criteria for each project or program to be assisted, unless
the project or program already exists.
2. Establish a timeframe for completing the project or program and the repayment
terms to the Affordable Housing Trust Fund, if applicable.
3. Prepare a financing plan for the project or program for review and approval by the
city council and by other entities as may be required by state law.
Page 4 of 14
City of St. Louis Park
Affordable Housing Trust Fund (AHTF) Use Guide
I. AHTF FUNDING
The purpose of the Affordable Housing Trust Fund is to support the creation or
preservation of housing that is affordable to people with incomes that do not exceed 80%
of the area median income (AMI), as defined by HUD. The St. Louis Park City Council
allocates resources to the AHTF as part of the annual city budget process. These funds
may include HRA Levy, Housing TIF and local dollars. The total available funding in any
given AHTF year may also include newly allocated resources or reallocated funds from
prior AHTF years. The city will allocate funding from the available sources to projects as
guided by the city’s annual budget and applicable policy. Not all funding may be awarded
in a given year.
II. ELIGIBLE APPLICANTS
Eligible applicants include non-profit, public or for-profit private developers.
1. To be funded, an applicant must have sufficient experience and/or demonstrate
sufficient capacity and training in housing development and management to
successfully secure financing, construct, complete, and operate the proposed
project, as determined by the city.
2. Applican ts must show prior experience and current capacity to complete the
project. All members of the development team must demonstrate the
qualifications necessary to complete the project.
III. ELIGBLE HOUSING PROJECTS
Development projects which create and/or preserve affordable housing units are
eligible to receive funding, including affordable rental units, homeownership units and
rent subsidies. The residential portions of mixed -use and live/work projects that meet
the affordability requirements of these guidelines shall be eligible for assistance.
Funding may also be provided to assist in the creation of common areas, meeting space,
and other space for use by the residents of the subsidized units. Projects covered by the
City of St. Louis Park’s Inclusionary Housing Policy may be assisted, provided the
assistance from the Fund is used to create a deeper level of affordability or an increase
in the number of affordable units than is required under that policy.
IV. ELIGBLE AND INELIBLE ACTIVITES
The AHTF may be utilized for the housing activities as outlined in the Affordable
Housing Trust Fund Policy, Section IV. Use of the Affordable Housing Trust Fund
which includes new construction; acquisition of property; conversion of non-
residential to residential use; conversion of rental units to limited -equity cooperative
Page 5 of 14
housing, condominiums or co-housing; relocation; and/or rehabilitation costs,
provided that the conditions below are met.
1. New Construction Activities: All reasonable costs associated with new
construction including:
a. Acquisition of property;
b. Gap financing for affordable units created at the 30%, 50%, 60% and 80% AMI
affordability level;
c. Enhancement of county, state and federal affordable housing programs;
d. Land acquisition and land banking for affordable housing creation;
e. Infrastructure improvements associated with the creation of affordable
housing units;
f. Low cost financing or grants in support of the creation of accessory dwelling
units affordable to households at or below 60% AMI;
2. Preservation of NOAH rental units and rent-restricted affordable rental units:
a. Reasonable costs associated with acquisition and/or rehab to secure long-
term preservation of NOAH units affordable at or below 60% AMI;
b. The purchase price of a property to be acquired shall not exceed its appraised
value, unless the Community Development Director finds that the project has
enough merit to justify paying a higher price, in which case the price shall not
exceed the appraised value by more than ten percent without the expressed
consent of the city council.
c. Rehabilitation shall include activities to make the building code compliant and
to abate lead contamination.
3. Creation of affordable homeownership opportunities affordable to households
with incomes at or below 80% AMI :
a. Closing costs and down-payment assistance;
b. Long term affordability gap funding in the form of a subordinate mortgage;
c. Financial assistance of property acquisitions to promote homeownership
opportunities utilizing the land trust model.
4. Rent subsidy and tenant protection initiatives:
a. Rent subsidies to support paying the difference between affordable rents and
market rate rents;
b. Relocation assistance for low -income , displaced renters.
5. AHTF funds may also be used for permanent or transitional housing for homeless
families and individuals, and for the modernization, rehabilitation and repair of
public housing.
Other eligible activities may include affordable housing initiatives to support the
aff ordable goals as outlined in the city’s comprehensive plan, to meet housing needs
as defined in the city’s comprehensive housing market study and the Met Council
Affordable Housing Allocated Goal and other activities as determined by the city
council.
Page 6 of 14
V. DISTRIBUTION OF FUNDS
The AHTF will function as an endowment fund to fund loans, provide loan guarantees
and grants in accordance with this section. The AHTF will be administered by the
Community Development Director. No disbursements shall be made from the AHTF
without the prior approval of the city council.
Fund requirements:
1. Rental/Homeownership distribution
A minimum of six ty-five percent (65%) of fund must be used for rental
housing; up to twenty-five percent (25%) for homeownership housing; up to
ten percent (10%) for administrative costs.
2. Income targets
One hundred percent (100%) of the AHTF must benefit low-income
households at or below sixty percent (60%) AMI for rental housing and at or
below eighty percent (80%) AMI for homeownership housing.
3. AHTF low-income targets: Five -year goals
a. Rental
i. At least thirty percent (30%) of the funds eligible for disbursement
shall be targeted for use to create affordable units for households
whose incomes are at or below thirty percent (30%) AMI.
ii. At least fifty (50%) of the funds eligible for disbursement shall be
targeted for use to create affordable units for households whose
incomes are at or below fifty (50%) AMI.
b. Ownership
i. At least five (5%) of the funds eligible for disbursement should be
targeted for use to create affordable homeownership units for
household incomes at or below sixty percent (60%) AMI.
ii. Distribution of funds related to the AHTF low income targets will be
monitored annually for progress in attaining the five-year goals and will
be based on an average five -year rolling bas is of actual funds
distributed.
4. AHTF can only be used to develop affordable housing units in a project located
within the City of St. Louis Park.
5. AHTF money may not be used for operating expenses of any program or
supporting services such as childcare or other social programs.
6. Costs covered by housing trust fund resources must not be covered by any other
resource .
7. Use of leveraged resources is strongly encouraged.
8. The city will provide assistance only to projects that require assistance to achieve
the AHTF Program’s goals and objectives.
9. Developments with 10 or more units funded by the AHTF program shall be
required to adhere to the city’s Inclusionary Housing Policy.
Page 7 of 14
VI. DEVELOPMENT/PROGRAM AFFORDABILITY REQUIREMENTS
All applications for funding must meet the minimum requirements listed below.
1. Rents
The following guidelines shall apply to multi-family rental projects:
a. Eligible housing projects must have rents as follows:
i. Not less than forty percent (40%) of all the units must be affordable to
households whose income does not exceed sixty percent (60%) of AMI;
or
ii. Not less than twenty percent (20%) of all the units must be affordable
to households whose income does not exceed 50% of AMI ;
In addition :
iii. Not less than five percent (5%) of all the units must be affordable to
households whose income does not exceed 30% of AMI;
iv. Preference may be given to projects that include additional units
affordable at 30% AMI exceeding the number of units as required
above;
v. Rents on the remaining units may be set at market rate;
vi. Income averaging may be allowed to achieve the affordability
requirements;
vii. Other lender requirements (such as the State of Minnesota programs
or financing requirements) may change these affordability
requirements. However, the affordability limits must still meet the
minimum affordability levels outlined in the AHTF guidelines un less an
exception is approved by the city council
b. All AHTF assisted rental units shall be occupied by households with incomes at
or below the targeted income category.
c. Applicants may propose to produce affordable units exceeding the required
number of units with lower income or affordability ranges than prescribed
herein, in which case, the lower income ranges shall be used to set rents for
the affordability term. The income limits apply to the initial occupancy of the
unit and all subsequent re -occupancy. Units whose construction is wholly or in
part funded by the AHTF shall be specified in the project's development loan
agreement executed with the City of St. Louis Park.
d. Rent ceilings are to be based on the Area Median Income (AMI) for the
Minneapolis-St. Paul Metropolitan Statistical Area issued by the Department
of Housing and Urban Development (HUD) and are to be adjusted annually to
reflect new area median income.
e. Rent ceilings shall include utilities based on the utilities schedule used for the
Federal Housing Choice Voucher Tenant-based Rental Assistance Program
administered by the St. Louis Park Housing Authority. Rent ceilings shall be set
for the units and are not based on the tenant’s household income. This may
result in households paying more than 30% of their incomes for rent or paying
less than 30%. Utility allowance, income and rent information data does
Page 8 of 14
change over time and the most current data should be utilized at the time of
application submission.
f. All units shall be leased in accordance with the City of St. Louis Park’s
Inclusionary Housing Policy Guide or MN Housings Low Income Housing Tax
Credit (LIHTC) program requirements if a LIHTC development.
g. The rent ceilings of the restricted units shall be finalized prior to making the
final AHTF funding recommendation to the city council.
h. Projects receiving AHTFs must not discriminate against tenants who would pay
their rent with federal, state or local public assistance, including tenant based
federal, state or local subsidies, including, but not limited to rental assistance,
rent supplements, and Housing Choice Vouchers.
i.
2. Homeownership Housing Developments
The following guidelines shall apply to homeownership projects:
a. There are no minimum requirements for the number of affordable
homeownership units in a project or complex which can receive assistance
from the AHTF. However, homeownership units otherwise required to provide
these affordability levels through the Inclusionary Housing Policy are not
eligible for an AHTF subsidy.
b. Sale prices of affordable units funded with AHTF subsidy must be set at a price
affordable to households with incomes at or below 80% of AMI as calculated
and published annually by the Metropolitan Council. Homeowner’s
Association dues (if applicable) will be factored into the affordable
homeownership cost.
c. All affordable homeownership units shall be made available to first-time
homebuyers or persons who have not owned a home in the past three years
or previous owners of limited equity cooperatives or similar type of housing
that have occupancy restrictions.
d. The City shall develop procedures for addressing maximum sales prices,
methods of selection of buyers, types of units to be assisted, forms of
assistance, forms of resale controls and other administrative controls as found
necessary by the Director of Community Development to ensure that units
continue to be affordable to, and sold to, households in the appropriate
income category. Ownership projects shall contain resale affordability controls
to achieve compliance with the goal of long -term affordability.
e. Housing sale prices shall be set based upon prevailing mortgage interest rates
and may include the value of second mortgage assistance provided by the
AHTF.
f. Properties acquired for the purpose of becoming part of a limited equity form
of ownership shall be considered as homeownership housing rather than
rental properties. However, in occupied buildings, existing tenants will have
the right to remain in their units as tenants or limited equity owners. The
developer shall assist existing tenants obtain additional necessary financing if
they are interested in becoming limited-equity owners.
Page 9 of 14
VII. AFFORDABILITY TERM
Affordability restrictions will apply to all AHTF funded projects. The AHTF will require
the longer of the 25-year term of affordability required by AHTF or the affordability
period pledged in the application. The term will be from the date of the project’s
completion or implementation.
VIII. TYPES OF ASSISTANCE
Funds from the Affordable Housing Trust Fund may be used flexibly to support
affordable housing initiatives and ensure the financial feasibility of the projects.
Funding awards will be made available in the form of a loan or a grant. The following
list is meant to be illustrative, but not exhaustive, of possible types of assistance
provided through the AHTF.
1. Deferred payment loans.
2. Low or no interest amortizing loans.
3. Down payment and closing cost assistance for first-time homebuyers.
4. Credit enhancements and mortgage insurance guarantees.
5. Matching funds for public resources that sponsor affordable housing projects.
6. Matching funds for employer-based housing.
7. Funds for rental assistance
IX. APPLICATION SUBMISSION
1. AHTFs may be awarded through both:
a. Periodic funding competitions (Request for Proposals) to which housing
program and housing developers are invited to submit housing proposals for
AHTF awards; and/or
b. In response to developer and program requests for funding through an open
pipeline basis .
X. REVIEW BY ST. LOUIS PARK
In selecting projects for funding, preference will be given to those projects that will
create new housing units in a manner consistent with the St. Louis Park’s AHTF policy.
In order to ensure that these limited resources are utilized in the most effective
manner possible consistent with the policy , funding thresholds and preferences have
been established to guide the decision-making process. Principles of sound
underwriting, and risk management will be applied when reviewing proposals.
Thres holds
The following minimum threshold criteria must be met or exceeded by all projects to be
considered for AHTF financing. Projects exceeding these minimums will be given
preference.
Page 10 of 14
1. The minimum term of affordability must be 25 years;
2. All AHTF units in the project must be affordable to households at or below 80% of
AMI for homeownership units and at or below 60% AMI for rental units;
3. Each project submitted for consideration for funding by the AHTF shall be
evaluated with respect to financial feasibility. Projects with an unfunded gap in
financing will not be selected for an award;
4. Applications must be consistent with the AHTF policy;
5. Each project submitted for consideration for funding by the AHTF shall be
evaluated with respect to its “readiness to proceed” based on the status of site
control, zoning, financing commitments, status of construction drawings,
selection of the general contractor, permitting and other commonly used
indicators. Funding preference may be given to those projects that are most likely
to be able to commence development in a timely manner upon approval of
funding; and
6. AHTF funds may not be used to support market-rate units.
Additional consideration will be given to the following:
1. Review of underlying assumptions about construction costs, revenues, operating
expenses, and financing;
2. The level and type of assistance provided by the AHTF to a specific project must
be the minimum amount necessary to achieve the desired degree of affordability
without compromising the overall development quality;
3. The amount of the request for AHTFs as a percentage of the total development
cost;
4. Income targeting presented in the application will be applied in the review;
5. Proposals will be underwritten and awards of AHTF funds will be structured to
ensure that funds will be repaid to the AHTF, whenever possible ;
6. For rehabilitation projects, a physical inspection of the property by the city will be
necessary;
7. Developers must submit financial statements and documentation of experience in
housing development and demonstrate the following:
a. Professional development experience, reasonable financial strength, and the
ability to undertake the proposed project , at the discretion of the city;
b. Ability to obtain adequate financing; and
c. Capability to manage the project successfully after completion or hire a
professional management company with experience in managing affordable
housing in compliance with AHTF requirements.
8. Preference may be given to projects that provide housing affordable to
households for large families and projects that provide affordable housing for
households with income s at or below 30% AMI ; and
9. Secured permanent capital funding commitments must be project specific and
include written documentation stating the amount, terms, and conditions from
the designated contributor. Rental and operating assistance may also be accepted
with the amount, terms and conditions from the designated contributor. Words
Page 11 of 14
synonymous with “consider” or “may” (as in “may award” or “pending”) are not
funding acceptable.
10. For permanent supportive housing, whether the applicant has secured on-going
funding for the supportive services that address the special needs of the proposed
target population.
XI. REVIEW OF APPLICATIONS
City staff will review and evaluate applications. Staff will review the applications in
the context of other pending requests for capital funding and the community
development impacts of the recommended award. Following staff’s review and the
ranking of the proposals, funding recommendations shall be presented to the city
council for review and approval.
XII. THE CITY’S RIGHT TO REJECT AND MODIFY PROPOSALS
The city reserves the right to reject and modify all proposals.
XIII. APPROVAL BY DIRECTOR OF COMMUNITY DEVELOPMENT
The Community Development Director issues the award letters for projects selected
for funding by the AHTF. The award letter includes conditions that must be met by
the borrower prior to closing on the AHTF funding.
XIV. TENANT-BASED VOUCHER ASSISTANCE:
City -assisted housing projects, including projects receiving AHTFs, are required to
accept tenant-based rental housing assistance, including, but not limited to Housing
Choice Vouchers, HOME tenant-based assistance , Group Residential Housing, Kids in
the Park and Stable Home rent assistance and comply with affirmative marketing
requirements.
XV. FUNDING AWARDS MAY BE CONTINGENT UPON AVAILABILITY OF FUTURE FUNDING:
Due to the extended length of time that is typically required for projects to be fully
funded and minimum funding commitment and expenditure timeframes imposed by
HUD, the city council at its sole discretion may make contingent AHTF awards to
projects from projected future local funding that has not yet been budgeted or
projected federal funding that has not yet been committed to the city. The city
council may elect to make AHTF funding awards contingent upon the future
availability of funding.
Page 12 of 14
XVI. FEES: PROPOSAL AND ORIGINATION
1. Origination Fee: If a project is awarded funding, an origination fee of 1% of the
AHTF award will be collected at closing.
2. The city will retain 12% of the AHTF Loan funds until the final draw after
construction completion.
XVII. FAIR HOUSING POLICY
It is the policy of the city to ensure fair housing opportunity in all city programs and to
administer its housing programs affirmatively, so that all residents of similar income
levels have equal access to city programs regardless of race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance, disability,
familial status or sexual orientation . Participants of the AHTF will be required to use
affirmative fair housing marketing practices in soliciting renters, determining
eligibility, and concluding all transactions as addressed in Title VIII of the Civil Rights
Act of 1968, as amended by the Fair Housing Amendment Act of 1988, as well as the
fair housing protections provided by the Minnesota Human Rights Act, which adds
creed, marital status, status with regard to public housing, and sexual orientation. In
part, regarding rental housing issues, Title VIII, the Human Rights Act make it
unlawful to: (i) discriminate in the selection/acceptance of applicants in the rental of
housing units; (ii) discriminate in terms, conditions or privileges of the rental of a
dwelling unit; (iii) engage in any conduct relating to the provision of housing that
otherwise make unavailable or de nies the rental of a dwelling unit; (iv) make or
publish (or have anyone else make or publish) advertisements that indicate
preferences or limitations based on race, color, creed, religion, national origin, sex,
marital status, status with regard to public assistance, disability, familial status, or
sexual orientation; (v) tell a person that because of race, color, creed, relation,
national origin, sex, marital status, status with regard to public assistance, disability,
familial status, or sexual orientation, a dwelling unit is not available when it is; and (vi)
deny access to, or membership or participation in, associations or other services
organizations or facilities relating to the business of renting a dwelling or discriminate
in the terms or conditions of membership or participation.
XVIII. ADMINISTRATION
The administration of the AHTF is the responsibility of the Community Development
Department. If there are questions about the AHTF Program, contact:
Karen Barton, Community Development Director
Community Development Department
City of St Louis Park
5005 Minnetonka Blvd
St. Louis Park, MN 55416
Phone Number: 952-924-2684
E-mail address: kbarton@stlouispark.org
Page 13 of 14
XIX. HOUSING TRUST FUND DEFINITIONS
The following definitions apply to terms used within these Guidelines:
1. Affordable Housing: housing that is provided at an affordable rent or an
affordable housing cost to low-income (80% AMI), 60% AMI and/or very low -
income (50% AMI) and/or extremely low -income (30% AMI) households.
2. Applicant: any individual, person, firm, partnership, association, joint venture,
corporation, limited liability company, entity, combination of entities or
authorized representative who undertakes, proposes or applies to the City for an
affordable housing development project.
3. Area Median Income or “AMI:” is established for metropolitan areas or non-
metropolitan counties by the U.S. Department of Housing and Urban
Development (HUD), pursuant to 42 U. S. C. Chapter 1437 et seq., to establish local
income classification levels.
a. Extremely Low-Income Household: a household having an income not
exceeding thirty (30%) percent of AMI adjusted for household size and as
defined by the U.S. Department of Housing and Urban Development.
b. Very Low-Income Household: A household having an income not exceeding
fifty (50%) percent of AMI adjusted for household size and as defined by the
U.S. Department of Housing and Urban Development.
c. Low Income Household: a household having an income not exceeding eighty
(80%) percent of the AMI adjusted for household size and as defined by the
U.S. Department of Housing and Urban Development.
d. Moderate -income Household: a household having an income not exceeding
one hundred twenty percent (120%) of the AMI adjusted for household size
and as defined by the U.S. Department of Housing and Urban Development.
Households with income between 120% and 80% of AMI are considered
“moderate income.”
4. Bridge Loan: an interim or short-term loan which can be used to finance all or part
of the development project’s costs until a permanent loan or the next stage of
longer-term financing can be obtained. Money from the replacement financing is
generally used to "take out" (to pay back) the bridge loan.
5. City: The City of St. Louis Park
6. Co-housing: A living arrangement which is owned and managed by the residents
and combines private living quarters with common dining and activity areas in a
community whose residents share tasks.
7. Cooperative Housing: a legal agreement or arrangement in which an association
or corporation owns a group of housing units and the common areas for the use
of all the residents. The individual participants (shareholder) own a share in the
cooperative which entitles the shareholder to occupy an apartment or unit as if
they were owners, to have equal access to the common areas and to vote for
members of the Board of Directors which manages the cooperative.
8. Limited Equity Housing Cooperative: offers ownership opportunities to lower
income households while limiting the return from resale that the household can
Page 14 of 14
receive from the housing. It contrasts with “market rate” cooperatives, where
memberships can be transferred at market value. Limited Equity Housing
Cooperatives are organized as nonprofit corporations.
9. Construction Loan: a short-term, interim loan for financing the cost of
construction. Payments from the loans are called construction draws and are
made at periodic intervals as the construction progresses. These loans are typically
converted or taken out by a “permanent loan” and or financing.
10. Development Project: means the new construction or the renovation of a
residential building or mixed -use building which includes residential units.
11. First-time Homebuyer: someone who has not owned a home in the past three
years.
12. Joint Venture Agreement: A legally binding contract which is formed by two or
more parties for a specific purpose. A Joint Venture is an enforceable agreement
formed by a partnership or other acceptable legal entity, and its scope is usually
limited to one development project.
13. Market Rate : Apartments and other residential dwellings that are available on an
unsubsidized basis to the general public for lease, rent, or for the purchase of
homeownership.
14. Permanent Loan: A long-term loan which is usually not less than 7 years and which
payments made by the borrower to the lender on the loan can be fully amortized
and/or deferred.
15. Pre -development: Time period which includes project feasibility studies, site
acquisition and preliminary design studies for a development project usually (but
not always) preceding the acquisition of a property site.
16. Residual Receipts: The income remaining after expenses, in any given time period.
17. Silent Second: A second mortgage or lien that is often obtained at preferential
(subsidized) terms. The second (or subordinate) lien might bear no interest and
may not be repayable until the first mortgage or deed of trust is repaid, or the
property is sold (and hence remains “silent”), or may be forgiven in whole or in
part after a certain period of time has elapse d.
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/Work Session/5802 Boone Ave N/5802 Boone Ave N Closing Extension Request 01‐16‐
24.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Community Development
By: Jeff Alger, Community Development Specialist;
Jeff Sargent, Director of Community Development
Agenda Title
Discuss request for extension of deadline for closing on sale of property to Great Buy Homes, Inc. at 5802 Boone
Avenue North (improvement project no. 1088)
Requested Action
Staff requests that the City Council discuss a request for an extension to the deadline for closing on the sale of
the property at 5802 Boone Avenue North to Great Buy Homes, Inc. The request was presented at the January
8, 2024, Economic Development Authority meeting and was tabled for further discussion.
Policy/Past Practice
The Economic Development Authority has reviewed and considered renegotiating terms of development
contracts related to scattered site properties in the past.
Background
The Economic Development Authority (EDA) approved the sale of the scattered site lot at 5802 Boone Avenue
North on August 28, 2023. The deadline for closing on the sale of the lot was December 26, 2023. After closing
was scheduled, Great Buy Homes notified city staff that “lenders have changed requirements and criteria,
specifically in the new construction funding quickly and without warning,” and requested that the closing
deadline be extended to April 1, 2024. The request was presented at the January 8, 2024, EDA meeting. The
EDA voted 4‐1 to table the item for further discussion.
Great Buy Homes currently owns three scattered site lots in New Hope and has constructed and sold an
additional eight homes in the city since 2017. When the lot at 5802 Boone Avenue North was marketed to
builders last summer, only the proposal from Great Buy Homes was submitted. The non‐negotiable minimum
lot sale price was set at $70,000 and builders were allowed the opportunity to submit a higher offer in order to
make their proposal more competitive. The decreased minimum lot price reflected changes in the housing
market as well as additional costs that must be incurred by the builder for supplying power to the future home
(estimated at $5,000 to $6,500). The Request for Proposals stated that “a two‐story or rambler design is
preferred” for the site, and that the proposed house “must be an owner‐occupied, single‐family home.” The
occupancy requirement applies to the first buyer for period of two years. Staff spoke with several builders who
elected not to submit proposals. They cited concerns about the housing market and interest rates, existing
unsold inventory, and not having been selected with previous proposals.
The proposal from Great Buy Homes features a split‐level entry home with a projected sale price of $475,000 to
$480,000. The home has 2,537 square feet of finished space, five bedrooms, and three bathrooms. The home
features a front porch, a garage door and front door with windows, stone address numbers built into the façade,
and a large amount of cultured stone. The home has a three‐stall garage, a master bedroom with a walk‐in
closet, granite/quartz countertops with a center island in the kitchen, and a vaulted ceiling. The builder has had
Agenda Section
Work Session
Item Number
11.7
Request for Action, Page 2
success with the split‐level design in New Hope and felt it would be more marketable than a rambler or two‐
story design.
The base characteristics and attributes of the proposal are summarized as follows:
Great Buy Homes
Lot purchase price $70,000
Projected sale price $475,000 to $480,000
Design Split level
Finished Space 2,537 SF
Bedrooms 5 (3 on upper level; 2 in lower level)
Bathrooms 3 (2 full; 1 ¾)
Garage 3‐stall with glass inserts
Façade Front porch
Stone address numbers built into façade
Shakes and board and batten siding
Front door with windows & sidelights
Cultured stone on entire 2‐stall garage and lower 1/3
of 1‐stall garage and lower 1/3 of home
Other Vaulted ceiling
Granite/quartz kitchen countertops with center island
1 walk‐in closet, upper level
Upgrade Checklist 22 of 45 checked
For more information on projected cost, projected tax impact, budget information, and previous homes
constructed by Great Buy Homes, please refer to the staff report and attachments included in the August 28,
2023, EDA packet.
The EDA has several options to consider, including but not limited to:
1. Approving the extension.
2. Denying the extension and remarketing the lot to builders with a submission deadline for proposals.
The EDA would have the option of decreasing the minimum lot sale price in an effort to attract
additional builders.
The EDA would have the option of specifying the style of home that would be required for
consideration of a proposal (two story, rambler, etc.).
3. Denying the extension and remarketing the lot to builders and/or the general public without a
submission deadline for proposals. Proposals could be considered as submitted, on a first‐come first‐
served basis.
Signage could be installed on the lot and the property could be marketed online.
The property could be added to the MLS if the EDA wanted to utilize a real estate agent or pay
a listing fee.
4. Taking no action and holding the lot to see if there are changes in the housing market.
Request for Action, Page 3
If the EDA elects to deny the extension, the purchase agreement would need to be canceled. This can be
accomplished through a voluntary cancelation or a statutory cancelation. The city attorney has outlined
processes for those options as follows:
Voluntary Cancelation
This is the easiest way to cancel a purchase agreement. In general, cancelations in real estate transactions
usually deal with a failed contingency, such as a failed inspection or failed financing, or one of the parties
choosing to back out and breaching the agreement altogether. The caveat, however, is that both the seller and
the buyer must sign a “Cancelation of Purchase Agreement” form for the voluntary cancelation to be effective.
This specifies what will happen to the earnest money ($2,000 was collected for 5802 Boone Avenue North). The
EDA could seek to keep the earnest money, but often the buyer will object and refuse to sign the cancelation
agreement unless the earnest money is returned. Another option would be for the EDA and buyer to split the
earnest money.
Statutory Cancelation Under Minnesota Statute section 559.21
If the seller refuses to sign the “Cancelation of Purchase Agreement” form, the EDA can use Minnesota’s
statutory cancelation process. This is viewed as the “traditional” way to cancel purchase agreements. A
cancelation under this provision requires proper Notice of Cancelation served on the buyer. The buyer then
has 30 days to cure the defaults which in this case would be closing on the purchase of the property. If the
buyer fails to cure the defaults, then the termination is effective. This option would involve legal
expenses/attorney fees.
If the extension were to be denied and the lot was remarketed to builders, it is possible that no other proposals
would be submitted, or a proposal with a different quality level would be submitted. Holding costs would
include property taxes, lawn maintenance, and monthly utility bills.
Funding
Potential additional holding costs would be funded through the EDA budget.
Recommendation
Staff recommends that the City Council discuss a request for an extension to the deadline for closing on the
sale of the property at 5802 Boone Avenue North to Great Buy Homes, Inc.
Attachments
Proposal
Request from Great Buy Homes for extension
1
Jeff Alger
From:GLENN HAMMER Owner <glennhammer@q.com>
Sent:Wednesday, December 20, 2023 3:21 AM
To:Jeff Alger
Subject:Requesting Extension for 5802 Boone Av lot purchase
Given the market slow down, lenders have changed requirements and criteria, specifically in the new construction
funding quickly and without warning. We were notified of changes their board or underwriters were making, and terms
that went along with that, and as a result we need an extension on the lot. I am asking for the lot purchase be moved
out, for on or before April 1st.
I am also working with some other lenders to have more flexibility in the future. Doing this will help to offset things, like
this current market slow down, that will affect up coming years.
Thanks,
Glenn Hammer
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/City Manager/2024/City Mgr Perf Eval/ws 011624/11.8 RFA City Mgr Perf Eval.docx
Request for Action
January 16, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: City Manager
By: Valerie Leone, City Clerk‐Treasurer
Agenda Title
Resolution calling for a closed meeting of the New Hope City Council authorized by Minn. Stat §13D.05,
Subd. 3(a) to conduct performance evaluation of the city manager
Requested Action
Staff requests adoption of the resolution to close the meeting prior to conducting the city manager’s six‐
month performance evaluation.
Policy/Past Practice
Per MS §13D.05, subd. 3(a) the Council may hold a closed meeting for the purpose of conducting the city
manager’s performance evaluation.
Background
Council appointed Reece Bertholf as city manager effective June 12, 2023. Item 3 of the Employment
Agreement calls for an initial performance evaluation to be conducted during the first six months of
employment and annually thereafter. The Agreement also states that Council will consider an increase in
compensation dependent on the results of the performance evaluation.
The closed meeting will be held immediately following adjournment of the regular council meeting. The
closed meeting will be electronically recorded.
At the next open meeting (Council Meeting of January 22, 2024), a summary of the evaluation must be
presented. The city manager’s 2024 goals will be discussed at the work session of February 20, 2024.
Attachment
Resolution
Employment Agreement
Agenda Section
Work Session
Item Number
11.8
RESOLUTION NO. 24-__
RESOLUTION CALLING FOR A CLOSED MEETING
OF THE NEW HOPE CITY COUNCIL
AUTHORIZED BY MINN. STAT. §13D.05, SUBD. 3(a) TO CONDUCT
PERFORMANCE EVALUATION OF CITY MANAGER
WHEREAS, the New Hope City Council has authority to close a meeting to evaluate the
performance of an individual who is subject to its authority; and
WHEREAS, Council appointed Reece Bertholf as city manager effective June 12, 2023;
and
WHEREAS, the Employment Agreement entered into on May 8, 2023, calls for an initial
performance evaluation to be conducted during the first six months of employment and annually
thereafter including consideration of compensation increase; and
WHEREAS, Reece Bertholf is aware that he may choose to keep the meeting open for
the performance evaluation.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope
as follows:
1. That a closed meeting of the City Council shall be held on 16th day of January,
2024, immediately following the adjournment of the regularly scheduled work session meeting of
the New Hope City Council in the Northwood Conference Room at the New Hope City Hall.
2. That the purpose of the meeting shall be the six-month performance evaluation of
City Manager Reece Bertholf.
3. That said meeting shall not be open to the public.
4. That the New Hope City Clerk shall electronically record the meeting and retain
the recording for three years.
5. That the New Hope City Clerk shall prepare a written roll of the City Council
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 City Council of the City of New Hope, Hennepin County, Minnesota, this
16th day of January, 2024.
____________________________________
Kathi Hemken, Mayor
Attest: _______________________
Valerie Leone, City Clerk