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HomeMy WebLinkAbout2021 09-13 EDAM MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER 1N THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 13, 2021 VIA ZOOM 1. CALL TO ORDER President Pro Tem Marquita Butler polled the EDA about their willingness to extend the rules beyond 10 p.m. to complete the EDA agenda. All present answered in the affirmative. The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Pro Tem Marquita Butler at 9:58 p.m. 2. ROLL CALL President Mike Elliott joined the meeting at 10:14 p.m., President Pro Tem Marquita Butler, Commissioners April Graves,Kris Lawrence-Anderson,and Dan Ryan joined the meeting at 10:02 p.m. Also present were Executive Director Reggie Edwards, Community Development Director Meg Beekman, City Attorney Troy Gilchrist, and City Clerk Barb Suciu. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lawrence-Anderson moved and President Pro Tem Butler, seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. July 26, 2021 —Regular Session Motion passed unanimously. Commissioner Ryan joined the meeting at 10:02 p.m. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2021-15 APPROVING THE ACQUISITION OF CERTAIN PROPERTY LOCATED AT: 6200 BROOKLYN BOULEVARD Executive Director Reggie Edwards introduced the item and explained it is the City's policy to allow the EDA to acquire property along Brooklyn Boulevard to further development along Brooklyn Boulevard. He invited Ms. Beekman to present the staff report. 09/13/21 -1- Community Development Director Meg Beekman stated this is a purchase agreement to acquire the property at 6200 Brooklyn Boulevard based on the City's policy to acquire single-family properties along this boulevard. The City is not actively engaged in conversation with property owners at this time; however, as part of the Brooklyn Boulevard corridor reconstruction project, the Public Works Department, in partnership with other consultants, met individual property owners around temporary easements and other issues related to the construction project. As part of those conversations, some property owners expressed an interest in having the City acquire all of their property. In those cases, staff directed the property owners to speak with EDA staff. Ms. Beekman stated in this particular case, the property owner reached out to the City and requested the City acquire his property. This is a single-family home constructed in 1955, currently zoned R-1, and totals .2 acres in size. The neighboring land uses are predominantly single-family residential, it is on the same block as the City's Fire Department, and the EDA has acquired the parcel immediately south of the Fire Station. The property across the street to the west are commercial properties. Ms. Beekman explained the total acquisition price would be $210,000 with moving expenses of $5,000. The seller would be responsible for previous assessments and taxes, can take items (such as appliances), can leave items (such as furniture), and if approved, the closing will take place on or before October 22, 2021. Ms. Beekman stated the EDA has already acquired 6234 Brooklyn Boulevard, two houses to the north. The middle parcel has not been acquired by the EDA but if it is acquired, the three lots could be combined for future redevelopment. She explained the policy to acquire single-family lots off Brooklyn Boulevard is primarily to support enhancing safety on the corridor by eliminating excessive curb cuts and assembling parcels for higher intensity development,which is in alignment with the Land Use Policy, Comprehensive Plan, and draft Brooklyn Boulevard Land Use Plan. Ms. Beekman stated the requested action is to adopt the resolution approving the acquisition of certain property located at 6200 Brooklyn Boulevard. Commissioner Lawrence-Anderson noted the purchase price seems to be a little lower than the current market value. Ms. Beekman stated the assessed value on the property is $165,000 and the property was appraised at $200,000. This was shared with the property owner and after negotiations, it was settled on $210,000, which is above both the assessed and appraised values. However, staff looked at the purchase prices of single-family homes over the past couple of years and found it has been higher. But, this particular property is smaller in terms of square footage than other homes acquired in the past few years. Staff tried to find a balance between what is a fair price as well as the responsibility of the EDA to hold the property. She noted the price also takes into consideration that there is not an immediate redevelopment plan so the intention is to hold this property. Commissioner Lawrence-Anderson thanked Ms. Beekman for this clarification. 09/13/21 -2- Commissioner Graves stated she appreciates that question because this property is two doors down from her and probably leaves her house and maybe two other single-family homes on that two- stretch block of Brooklyn Boulevard. She stated she does not plan to sell her house any time soon so the EDA may have to take it from her in order to have that happen. Commissioner Graves stated she has always paid attention to the property values and had a question during the construction of Brooklyn Boulevard about whether properties sell differently. She noted she lives on a lot that is almost one-half an acre, bigger than the property under consideration, and most of her property values have been fairly similar to the suggested purchase price, which she thinks is an underestimation based on the size of her (Graves') lot. She asked if she were to convert her house into a business, would it be worth more money. Ms. Beekman stated that is a good question. She explained there are different kinds of appraisals, current use or highest and best use, and they likely will result in different valuations. So commercial properties, generally speaking, are going to appraise higher per square foot than residential properties. However, there are a lot of factors that go into that such as the underlying zoning and what can be created there. Ms. Beekman explained the term up zoning with happens when cities zone property for a higher use or higher value use than the underlying zoning. This happens when commercial is introduced or allowed where residential was only allowed before. That is up zoning and generally means the value will go up. She explained the size of the lot and its ability to be combined with neighboring parcels to maximize what can be built there is another factor. Ms. Beekman stated it is hard to say on any given particular case but generally speaking if the higher residential density is allowed or zoning from residential to commercial, it will equate to an increased value or zoning. Ms. Beekman stated there is also time and money that plays into it, noting the City does not pay the highest and best valuation when acquiring property. The reason for that is because if there is not an immediate development, the City is buying on spec or to hold for future unknown redevelopment. What happens in those cases, is that the value of the property is not the highest and best because there is not a project ready to go. But, on the flip side, if a developer comes in and has a project ready to build, then that property might be able to command a higher price. Commissioner Graves stated she appreciates that rundown because she had questions when she was given the proposal for the use of her front yard. She wondered if it would have been different if her house was used for business property. Commissioner Graves stated support for the resolution. Commissioner Graves moved and President Pro Tem Butler seconded to adopt RESOLUTION NO. 2021-15 Approving the Acquisition of Certain Property Located at 6200 Brooklyn Boulevard, Brooklyn Center, Minnesota. Motion passed unanimously. President Elliott returned to the meeting at 10:14 p.m. 5. ADJOURNMENT 09/13/21 -3- Commissioner Graves moved and President Pro Tem Butler seconded adjournment of the Economic Development Authority meeting at 10:15 p.m. Motion passed unanimously. STATE OF MINNESOTA) COIJNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned,being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of the Economic Development Authority Session of the City Council of the City of Brooklyn Center held on September 13, 2021. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its September 27, 2021, Regular Session. � � � City Clerk Mayor 09/13/21 -4-