031824 Work Session Meeting Packet
CITY COUNCIL
WORK SESSION MEETING
New Hope City Hall, 4401 Xylon Avenue North
Northwood Conference Room
Monday, March 18, 2024
6:00 p.m. ‐ dinner
6:30 p.m. – work session
Mayor Kathi Hemken
Council Member John Elder
Council Member Andy Hoffe
Council Member Michael Isenberg
Council Member Jonathan London
1. CALL TO ORDER – March 18, 2024
2. ROLL CALL
11. UNFINISHED & ORGANIZATIONAL BUSINESS
11.1 Dialogue with Human Rights Commission
11.2 Discussion regarding the purchase of public safety equipment for the police
department
11.3 Request by Somali Community Resettlement Services to waive restrictive
covenants on the property located at 7300 42nd Avenue (Gill Brothers Funeral
Chapels)
12. OTHER BUSINESS
13. ADJOURNMENT
https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/POLICE/2024/Work Sessions/11.1 Q ‐ Work Session HRC Dialogue 2024.docx
Request for Action
March 18, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Police
By: Tim Hoyt, Director of Police
Agenda Title
Dialogue between City Council and Human Rights Commission
Requested Action
The City Council has requested the opportunity to meet with each commission annually during a work
session environment for an exchange of information. The HRC’s last dialogue at a council work session was
on March 20, 2023.
Policy/Past Practice
The Council discussed the frequency of commission dialogues and updates and agreed to request one work
session dialogue and one council meeting update per year for each commission to report on activities.
Background
The Human Rights Commission has been invited to attend the March 18 work session to discuss the
commission’s activities and to hold a dialogue between the Council and commissioners regarding the
commission’s activities and assignments.
The Human Rights Commission currently has eight of ten authorized members serving on the commission.
The Human Rights Commission conducts a variety of educational activities, assists and guides citizens, and
serves in an advisory capacity to the City Council.
Meetings are held on the first Monday of each month at 7 p.m. at New Hope City Hall.
Discussion topics include:
2023 Accomplishments
2024 Subcommittees
Attachment
Human Rights Commission PowerPoint Presentation
Agenda Section
Work Session
Item Number
11.1
Human Rights Commission
City Council Work Session
March 18, 2024
New Hope
Human Rights Commission
■“The Human Rights Commission
advises the City Council on human
relations and civil rights issues…and
recommends the adoption of such
policies or actions needed to provide
for full equal opportunity in the
community.”
Current State
■Capacity for ten members who serve
two year terms; including two high
school students
■Currently have 8 commissioners
■Meetings are held monthly
■Police Chief acts as liaison
Current Commissioners
■Chair Kendra Curry
■Open Co-Chair
position
■Secretary Allison
Isenberg
■Kaamil Hassan
■Maria Leon
■Matthew London
■Mindy London
■Jeremy Bishop
■Jessica Knapp
2023 Subcommittees
■Community Conversations
■Colors of the World
■Outreach
■Sunnyside Park Sponsorship
■Fundraising
■Iftar Dinner Co-sponsored with JCPP
■Hispanic Heritage Celebration
–Planning in 2023, Event in 2024
2023 Accomplishments
■Sunnyside Park Sponsorship
■Colors of the World Project Continuation
■Community Conversations
■Promoted Good Citizenship Award
■Partnered with City Communications
Director to publicize HRC events
■Volunteered at city sponsored and other
local community events
2024 Subcommittees
■Colors of the World
■Sunnyside Park Sponsorship
■Outreach
■Human Rights/Freedom of Speech month
event
■Partnership with local organizations for
election
■Partnership with other communities for pride
month and Juneteenth celebrations
https://newhopemn.sharepoint.com/sites/files/all user access/rfa/police/2024/work sessions/psap funds/q - public safety aid purchases ws 031824.docx
Request for Action
March 18, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Police
By: Tim Hoyt, Chief of Police
Agenda Title
Discussion regarding the purchase of public safety equipment for the police department
Requested Action
Staff is requesting Council’s review of several public safety items which staff proposes to purchase with the
public safety aid funds the city received in December of 2023 from the State of Minnesota as part of a Public
Safety Aid Package. If Council supports the purchase, a resolution formally approving the purchases will be
presented at a future council meeting.
Background
The PSAP funds can only be used for public safety purposes. Staff is seeking approval to purchase the items
listed below.
Total PSA received 957,038.00
WMFD portion (191,408.00)
Remaining funds 765,630.00
2024 Approved Budget (PSA funds)(166,000.00)
Remaining funds 599,630.00
March 18, 2024 Work Session Discussion
Investigator Warrant Go Bags - 2 400.00
Stop Sticks (13)1,985.00
IBIS Fingerprint Scanner 4,140.00
Mobile Laptop 6,000.00
Lidars (2)8,000.00
Fitness Equipment 9,234.00
Accurint 12,000.00 * 2-year contract
Drone (+ Training)12,000.00
Optics for Rifles 12,000.00
Graphics and branding (State seal change)15,000.00
Speed Trailer 22,139.00
Officer wellness 25,000.00
Flock Camera System 46,900.00 *2-year contract
Mobile Surveillance Trailer 71,000.00
Retention funds 179,000.00
Total from RFA 424,798.00
Remaining funds after WMFD, 2024
budgeted items and RFA items 174,832.00
Agenda Section Work Session
Item Number
11.2
https://newhopemn-my.sharepoint.com/personal/vthompson_newhopemn_gov/Documents/Desktop/7300 42nd Ave Convenants 03-18-24.docx
Request for Action
March 18, 2024
Approved by: Reece Bertholf, City Manager
Originating Department: Community Development
By: Jeff Sargent, Director
Agenda Title
Request by Somali Community Resettlement Services to waive restrictive covenants on the property located at
7300 42nd Avenue (Gill Brothers Funeral Chapels).
Requested Action
Staff was approached by representatives of the Somali Community Resettlement Services (SCRS) group with a
request to release restrictive covenants placed on the property located at 7300 42nd Avenue that prohibit the
sale of the property to a tax-exempt organization. Staff would like to discuss this matter with the City Council
prior to a formal decision made by the Economic Development Authority (EDA) at a future meeting.
Policy/Past Practice
It is customary to discuss land use issues with the City Council prior to formal action taken that would affect
the city.
Background
In December of 1985, the Housing and Redevelopment Authority of New Hope established TIF District 85-2, a
redevelopment TIF district that focused on the redevelopment of properties in proximity to the intersection of
Winnetka and 42nd avenues. On June 27, 1996, Gill Brothers Funeral Chapels entered into a Redevelopment
Agreement with the EDA to construct the funeral chapel which is currently located at 7300 42nd Avenue.
Because the property was in an active TIF district, the EDA required a declaration of restrictive covenants
(attached) be placed on the property to ensure that the proper amount of taxes would be generated. Specifically,
the covenants stated that the property shall not be sold, transferred, conveyed, or leased to any of the following
parties:
(a) An institution of purely public charity;
(b) A church or ancillary tax exempt housing;
(c) A public hospital;
(d) A public school district;
(e) An organization exempt from federal income taxes pursuant to Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended; or
(f) A Minnesota cooperative association organizes under Minnesota Statutes, Section 308.05 and
308.18 for the purpose of complying with the provisions of Minnesota Statutes, Section
273.133, subdivision 3, or any other party that would cause the Property to be valued and
assessed for real estate tax purposes at a lower percentage of its market value than the
Property is then being valued and assess for real estate tax purposes or would result in the
Property becoming exempt from real estate taxes.
Section 4 of the Declaration of Restrictive Covenants states that “the covenants and restrictions herein contained
shall run with the title to the Property and shall be binding upon all present and future owners and occupants
of the Property; provided, however, that the covenants and restrictions herein contained shall inure only to the
Agenda Section Work Session
Item Number
11.3
Request for Action, Page 2
benefit of the EDA, and may be released or waived in whole or in part at any time, and from time to time, by
the sole act of the EDA…”
Section 5 of the Declaration of Restrictive Covenants state that “the covenants and restrictions herein contained
shall remain in effect until June 1, 2026, and thereafter shall be null and void”.
It should be noted that the Declaration of Restrictive Covenants was established to protect the taxing power of
TIF District 85-2. TIF District 85-2 came to its legal end term on December 31, 2012, and has not been generating
TIF since then. Therefore, the need to perpetuate the covenants no longer involves protecting the taxing power
of the TIF district in question.
The attached letter from SCRS expresses their desire to purchase the property located at 7300 42nd Avenue,
with the intent to provide their services in New Hope. SCRS was formed in 1999 by a volunteer network of
Somali refugees to directly respond to the growing needs of refugees and immigrants resettling into Minnesota.
Services provided by SCRS include helping with specific documentation and navigating the immigration
system to Somalis, access to legal counsel, English language education, health care, workforce training, etc.
SCRS also provides suicide prevention services and workforce training services. As indicated in the letter, as
an “institution of purely public charity”, SCRS will seek property tax exemption after the purchase of the
building is complete.
The request made by SCRS to the EDA is to release the Declaration of Restrictive Covenants that are currently
in place, which prohibit the sale of the property to an institution of “purely public charity”. The only way SCRS
would be able to continue the process to purchase this property is if the covenants were released.
Property Taxes
The property at 7300 42nd Avenue North owes $32,908.90 in taxes for 2024. Of the taxes owed, $7,961.79 will
go to the city ($6,442.75 general revenue, $1,519.04 debt services). Assuming taxes payable to the city increase
by 5% in 2025 and in 2026, it is estimated that the city will collect the following prior to the property becoming
eligible for tax exempt status:
2024: $7,961.79
2025: $8,359.88
2026: $8,777.87
Total: $25,099.54
Options
Option 1 would be for the EDA to leave the covenants in place until they naturally expire on June 1, 2026. With
this option, the city would guarantee the receipt of all taxes the property would generate in the amount of
approximately $25,100. Not releasing the restrictive covenants would also disqualify SCRS from purchasing
the property, forcing them to either seek a different property or wait until June 1, 2026, to purchase. After June
1, 2026, the property would be available for any type of organization to purchase and could potentially be
converted to a tax-exempt classification at that time.
Option 2 would be for the EDA to release the restrictive covenants that are currently in place. If the EDA choses
this option, and SCRS purchases the property prior to July 1, 2024, the city would only receive taxes owed on
Request for Action, Page 3
the property for 2024, or $7,961.79. SCRS would file for tax-exempt status and would no longer have to pay
taxes on the property but would be able to provide its services in New Hope to New Hope residents and the
surrounding area.
Recommendation
Staff recommends that the City Council discuss the options pertaining to the potential release of the declaration
of restrictive covenants. After careful consideration and analysis of the request, staff also recommends that the
EDA release the covenants, being that the TIF district has expired and the initial need for the covenants is no
longer viable. The formal request by the petitioner to release the covenants will be presented to the EDA at the
March 25, 2024, meeting.
Attachments
• Declaration of Restrictive Covenants
• Waiver request letter from SCRS
• Owner consent for waiver of covenants
TO:
CC:
FROM:
DATE:
RE:
SOMALI COMMUNITY
City of New Hope Economic Development Authority
Jeff Sargent
Somali Community Resettlement Services
Abdullah Hared, Executive Director
2115 Stevens Avenue
Minneapolis, MN 55406
Febrnaty 28, 2024
Request for waiver of Restrictive Covenant on property located at 7300
42nd Ave N., New Hope, MN 55427, Hennepin County Doc Number 6599846
Somali Community Resettlement Services (SCRS) wishes to purchase the above
referenced property and hereby requests that the New Hope Economic Development Authority
("EDA") waive the Restrictive Covenant (Docu ment# 6599846 attached) imposed by the EDA
in 1996 and which expires June 1, 2026. It is our understanding that the TIF benefit already
expired on this property on December 31, 2012. Seller Anchor Point Properties, LLC, consents
to this request and is providing a separate letter indicating their support.
SCRS was formed in 1999 by a volunteer network of Somali refugees to directly respond
to the growing needs of refugees and immigrants resettling in the State of Minnesota. SCRS has
provided over 25 years of services in Rochester, Faribault, and Minneapolis to immigrant and
refugee connnunities advancing their social well-being and welfare. With an annual budget of
$3.5 million and 45 employees, SCRS has identified New Hope as an ideal location to expand its
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