07-26-05 SPEC MTGA special meeting of the Hopkins City Council was held on July 26, 2005, in the
• Council Chambers of the Hopkins City Hall.
Present were Mayor Maxwell and Council Members Brausen, Thompson, Johnson,
and Rowan. Also, present were staff members Getschow, Kerrigan, and City
Attorney Jerry Steiner.
CALL TO ORDER
Mayor Maxwell called the meeting to order at 5:06 p.m.
VII. OLD BUSINESS
1. TIF District 1-3 (CR 2005-095)
City staff has been working with GPS Development, LLC and The Cornerstone Group
to facilitate mixed-use residential/retail projects on the property between 5th and Stn
Aves, north of Mainstreet and south of 1St St N. To facilitate these projects, staff is
proposing that this property be placed in a tax increment district.
Public hearings were held on this action on June 21St and July 19th. The public
hearing on July 19th was closed and this item was continued to this meeting. The
proposed district would be a redevelopment TIF district. A property inspection report
was prepared by LHB. The inspection found that the subject area meets statutory
qualifications for this type of district.
The establishment of the district does not obligate the City or HRA to provide tax
increment assistance.
The Zoning and Planning Commission adopted a resolution on May 31, 2005 that
finds that the proposed district is in conformance with the Comprehensive Plan.
The City Council will also need to meet as the HRA and take action on this item. A
special HRA meeting is scheduled for July 26, 2005, at 6:15 p.m.
Michael Fischer, LHB, reviewed the report from LHB and explained how the
determinations were arrived at in the report. Mr. Fischer responded to the letter from
Brad Gunn and explained how code and ADA costs were determined.
Sid Inman, Ehlers and Associates, reviewed the letter from Brad Gunn addressed to
Bob Lindahl in regards to the development and financial information and answered
questions that were brought up in the letter.
Bob Lindahl, Kennedy and Gravin, responded to the letters that were submitted by
Brad Gunn and reviewed the public gain that would result from the project. Mr.
July 26, 2005 Special City Council Meeting Page 1
Lindahl also explained the statutory requirements of code and ADA cost analysis and
reviewed the elements of the resolution.
Council Member Johnson asked for clarification on page A-5, paragraph (i), lines three
and four of the resolution. The resolution states that there are 24 parcels and the
reports state that there are 23 parcels. Mr. Lindahl stated that there are 23 parcels
and that the motion should reflect that change.
Brad Gunn, attorney for Hopkins Park Plaza, voiced objections to the creation of a TIF
district and the use of TIF funds for the project. Mr. Gunn once again stated that
they are prepared to do a comparable project without the use of TIF funds.
David Kirkman, attorney for GPS, came forward and stated that in a meeting with
Spyder Development, Mr. Susse of Spyder development stated that they would
operate the current business for three to four years and that it is possible that they
would also need TIF funds to complete their project of constructing assisted living
units.
Mr. Kerrigan stated that Appendix A had been placed on the Council's table and
should be included in the resolution, and that the motion should reflect that.
Members of the Council thanked the consultants for an excellent job of presenting the
reports and thanked Mr. Gunn for taking his time to give his input.
Council Member Johnson moved and Council Member Brausen seconded a motion to
adopt Resolution 2005-055, modifying the redevelopment plan for Redevelopment
Project 1 and establishing Tax Increment District 1-3 therein and adopting a tax
increment financing plan therefore, subject to HRA approval of HRA Resolution 430
with the changes made to paragraph (i) on page A-5 of the resolution and with the
inclusion of Appendix A. A poll of the vote was as follows: Council Member
Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council
Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously.
2. Approve Development Agreement, Block 64 Project (CR2005-101)
GPS Development is planning to undertake amixed-use redevelopment project on the
block bounded by Stn and 6"' Aves N, north of Mainstreet and south of 1St St N (Block
64). The project would involve the construction of approximately 220 Condominium
units and 6,800 square feet of retail space. GPS is requesting tax increment
assistance to make the project financially feasible. Action taken would approve
execution of a development agreement with GPS Development, LLC and the
execution of a tax increment revenue note.
The Development agreement details the responsibilities of both the City/HRA and the
developer.. The agreement was prepared by Bob Deike of Bradley and Deike and
addresses the following: scope of work, parameters of TIF assistance, timing for
July 26, 2005 Special City Council Meeting Page 2
completion of actions to facilitate the project, default provisions, and specific
requirements to be satisfied by GPS Development before the City would utilize its
eminent domain authority to acquire property not secured through a negotiated
purchase.
Bob Deike reviewed the changes that have taken place in the agreement since the
Council last reviewed it. The changes address relocation and displacement costs.
Council Member Thompson moved and Council Member Rowan seconded a motion to
approve the contract for private redevelopment between GPS Development, LLC and
the Housing and Redevelopment Authority In and For the City of Hopkins. A poll of
the vote was as follows: Council Member Brausen, aye; Council Member Thompson,
aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell,
aye. The motion carried unanimously.
VIII. ADJOURNMENT
There being no further businESS, Council Member Johnson moved and Council
Member Brausen seconded a motion to adjourn the meeting. The meeting was
adjourned by unanimous consent at 7:15 p.m.
Respectfully Submitted,
erry O rmaier, City Clerk
ATTEST:
Eugene wel , Mayor
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