HomeMy WebLinkAbout09-26-22 EDA
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8/8/22 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
AUGUST 8, 2022
CITY HALL – COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Pro Tem Marquita Butler at 8:58 p.m.
2. ROLL CALL
President Pro Tem Marquita Butler and Commissioners April Graves, Kris Lawrence-Anderson,
and Dan Ryan. President Mike Elliott was absent. Also present were Executive Director Reggie
Edwards, and City Clerk Barb Suciu.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Graves moved and Commissioner Ryan seconded to approve the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. July 25, 2022 – Regular Session
3b. RESOLUTION NO. 2022-20; IDENTIFYING THE NEED FOR
MINNESOTA BROWNFIELDS FUNDING AND AUTHORIZING AN
APPLICATION FOR GRANT FUNDS.
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
None.
5. ADJOURNMENT
Commissioner Graves moved and Commissioner Ryan seconded adjournment of the Economic
Development Authority meeting at 9:00 p.m.
Motion passed unanimously.
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BR291-386-822302.v5
Term Sheet
This Term Sheet as of this 26th day of September, 2022 by and between Alatus Brooklyn Center MD LLC,
(the “Developer”) and the Economic Development Authority of Brooklyn Center (the “EDA”) and is
intended to set forth the general terms upon which the parties hereto may be willing to enter into a definitive
tax increment financing assistance and purchase agreement (whether one or more separate agreements, the
“Definitive Agreement”).
1. Developer: Alatus Brooklyn Center MD LLC
IDS Center
80 South 8th Street, Suite 4155
Minneapolis, MN 55402
Attn: Robert Lux
The Developer will have the right to assign its rights and obligations under the Definitive
Agreement with respect to each Building described below (together with the applicable related
Property, each a “Phase”) to another developer (each an “Applicable Developer”) so long as
certain conditions set forth in the Definitive Agreement are satisfied; provided, however, the
Developer’s assignment of its rights and obligations (i) with respect to a Phase to an affiliate of
Developer, (ii) with respect to the Building 2 Phase to Resurrecting Faith World Ministries (or an
affiliate thereof), and (iii) with respect to the Building 4 Phase and/or Building 5 Phase to Project
for Pride in Living (or an affiliate thereof), shall be pre-approved. Upon a valid assignment of
rights and obligations of a Phase to an Applicable Developer, the assigning Developer will be
released from its obligations with respect to such Phase.
2. Site: Parcel #1: 2500 County Road 10 (PID# 02-118-21-24-0019)
Parcel #2: 5900 Shingle Creek Parkway (PID#02-118-21-24-0020)
3. Legal Description of Site: A portion of the property legally described below:
PARCEL 1:
Lot 2, Block 2 Brookdale Square Addition
PARCEL 2:
Lot 1, Block 1, Brookdale Square Addition
Property will be re-platted as follows:
Lot 1, Block 1 Opportunity Site Addition
Lot 1, Block 2 Opportunity Site Addition
Lot 1, Block 3 Opportunity Site Addition
Lot 1, Block 4 Opportunity Site Addition
Lot 2, Block 4 Opportunity Site Addition
Lot 1, Block 5 Opportunity Site Addition
Lot 2, Block 5 Opportunity Site Addition
Outlot A Opportunity Site Addition
Outlot B Opportunity Site Addition
BR291-386-822302.v5
4. Acquisition of Property: Parcel #1 and Parcel #2 are currently owned by the EDA. The Developer
proposes to purchase the following portion of such re-platted property (the “Property”):
Lot 1, Block 1 Opportunity Site Addition
Lot 1, Block 2 Opportunity Site Addition
Lot 1, Block 3 Opportunity Site Addition
Lot 1, Block 4 Opportunity Site Addition
Lot 2, Block 4 Opportunity Site Addition
Outlot A Opportunity Site Addition
The purchase price for such Property is as set forth below:
The Developer will have the right to acquire the entire Property in one closing. The Developer also
will have the option to acquire one or more parcels of the Property in separate closings, provided
that either Lot 1, Block 1 Opportunity Site Addition or Lot 1, Block 3 Opportunity Site Addition is
part of the first closing.
The Definitive Agreement will give the Developer a purchase option or right of first refusal to
acquire the portion of the Site proposed to be re-platted as Lots 1 and 2, Block 5 Opportunity Site
Addition (the “Additional Property”), provided that, as a condition to accepting the Developer’s
exercise of the purchase option, the EDA will have the right to review and approve the Developer’s
proposed plan of development for the Additional Property. Except for the terms of such purchase
option or right of first refusal, the disposition and development of the Additional Property will be
governed by a future agreement and not subject to the Definitive Agreement described herein.
5. Conveyance Subject to Right of Re-entry. The EDA’s conveyance of the Property to the Developer
pursuant to the Definitive Agreement shall be made in the form of a quit claim deed (the “Deed”).
The Deed shall include a right of re-entry for breach of a condition subsequent in favor of the EDA
(the “Right of Re-entry”) on a Phase-by-Phase basis. The condition(s) subsequent shall be
determined by the EDA in accordance with Minnesota Statutes Section 469.105 and set forth in the
Deed conveying the Property to the Developer in the form attached to the Definitive Agreement.
If the Developer breaches such condition(s) subsequent with respect to a Phase, the Developer shall
re-convey the applicable Phase (or applicable portion thereof) back to the EDA. If the Developer
fails to re-convey such applicable Phase to the EDA, the EDA may elect to exercise its right of
reentry by commencing an action in Hennepin County District Court to establish the breach of the
condition subsequent. If the EDA establishes a breach of the condition subsequent, title to and the
right to possession of such applicable Phase and title to all improvements located thereon reverts
to the EDA, and the Developer is not entitled to any compensation from the EDA for such
applicable Phase or the value of any improvements the Developer has made to such applicable
Phase. The Developer must record any certificate of completion or certificate of release of the
Right of Re-entry in the proper County land records at its expense.
BR291-386-822302.v5
6. Minimum Improvements: Construction of multiple Buildings containing approximately 613 multi-
family rental units with affordable levels within each Building noted in the table below, inclusion
of an approximately 30,000 sq. ft. of space for an Entrepreneurial Market, construction of an
approximately 26,500 sq. ft. privately owned conference center, construction of approximately
$13.9 million in public infrastructure, and related structured and surface parking.
Building Use
Building 1
(Lot 1, Block 1)
Single 6-Story multi-family rental Building consisting of approximately
278-units of market rate apartments (Unit/Tract A). Building will include
approximately 30,000 sq. ft. of space built-out for use by an
Entrepreneurial Market (Unit/Tract B). The Developer shall pursue New
Market Tax Credits (NMTC) as a potential funding source for the
Entrepreneurial Market.
Building 2
(Lot 1, Block 2)
One single-story 26,500 sq. ft. Conference Center with 24-hour childcare
and wellness and barber suites. The Developer shall pursue New Market
Tax Credits (NMTC) as a potential funding source for this Building.
Building 3
(Lot 1, Block 3)
Single 6-Story multi-family rental Building consisting of approximately
205-units of market rate apartments, in which 41 units (approximately
20%) are affordable to persons at or below 80% AMI
Building 4
(Lot 1, Block 4)
4-Story Building with approximately 60 Low Income Housing Tax Credit
(LIHTC) apartments. Approximately 16 units are affordable at or below
30% AMI and 44 units are affordable at or below 50% AMI
Building 5
(Lot 2, Block 4)
4-Story Building with approximately 70 Low Income Housing Tax Credit
(LIHTC) apartments. Approximately 15 units are affordable at or below
50% AMI and 55 units are affordable at or below 60% AMI
The affordability within the project is summarized in the table below:
7. Construction Schedule: Commence construction of each Building by the Commencement Date,
and substantially complete construction of each Building by the Completion Date as set forth
below. For the purpose hereof, “Commence” shall mean beginning of physical improvement to the
Property for the respective Building, including excavation, or footings. “Complete” shall mean that
the Minimum Improvements are sufficiently complete for the issuance of a Certificate of
Occupancy.
Building 1 Building 3
Building 4
LIHTC
Building 5
LIHTC Total
%
Affordable
Number of Units 278 205 60 70 613
30% AMI 0 0 16 0 16 3%
50% AMI 0 0 44 15 59 10%
60% AMI 0 0 0 55 55 9%
80% AMI 0 41 0 0 41 7%
Total Affordable 0 41 60 70 171 28%
BR291-386-822302.v5
The Developer and the EDA propose that the dates for each Building of the construction schedule
may be revised based upon timing of actual construction schedules, financing, market conditions,
etc. Revisions to the dates of each Building of the construction schedule shall not require approval
or further action by the EDA and may be approved administratively by staff and legal counsel, so
long as such revisions are no more than 18 months from each Building of the construction schedule
as noted above. Any revision to the dates beyond 18 months for each Building in the construction
schedule shall require renegotiation between the parties.
8. Affordability Covenants Buildings 3, 4, and 5: Developer proposes that the Minimum
Improvements are subject to the following affordability covenants:
(a) The Developer expects that the Building 3, 4, and 5 Minimum Improvements will include
the mix of rental housing units as noted in the table above. The affordable units in Building 3 will
be “fixed” units, and income verification will be performed at initial occupancy only.
(b) With respect to Buildings 4 and 5 only:
1. The Developer will apply to Metropolitan Council HRA and/or Hennepin County for
project based housing choice vouchers. The Developer will be required to enter into a
Declaration of Restrictive Covenants that will cause the affordable restrictions to
remain in effect for a thirty (30) year period. On the date of execution of the Definitive
Agreement, the Developer will deliver an executed Declaration to the EDA in
recordable form.
2. During the term of the Declaration, the Developer shall not adopt any policies
specifically prohibiting or excluding rental to tenants holding certificates/vouchers
under Section 8 of the United States Housing Act of 1937, as amended, codified as 42
U.S.C. Sections 1401 et seq., or its successor because of such prospective tenant’s
status as such a certificate/voucher holder.
3. The Developer will promptly notify the EDA if at any time during the term of the
Declaration the number of Rental Housing Units in Buildings 4 and 5 occupied by
Qualifying Tenants (as defined in the Declaration) or held vacant and available for
occupancy by Qualifying Tenants pursuant to the Declaration are fewer than the
number required by the terms of the Declaration.
4. The Developer must submit evidence of tenant incomes, showing that the Building 4
and 5 Minimum Improvements meet the income requirements set forth in the
Declaration by April 1st of each year. The EDA will review the submitted evidence
Building Legal Description
Commencement
Dates: Estimated
Outside Date
1(a) - Market Rate Lot 1, Block 1, Opportunity Site Additio 6/30/2023
1(b) - EMP Lot 1, Block 1, Opportunity Site Additio 6/30/2023
2 - Conference Center Lot 1, Block 2, Opportunity Site Additio 6/30/2023
3 - Mixed Rate Lot 1, Block 3, Opportunity Site Additio 12/31/2023
4 - PPL & RFWM Affordable Lot 1, Block 4, Opportunity Site Additio 12/31/2023
5 - PPL Affordable Lot 2, Block 4, Opportunity Site Additio 12/31/2024
BR291-386-822302.v5
related to the income restrictions and to the extent the thresholds are not met, the EDA
will withhold the TIF payment related to such Building for that time period.
(c) The EDA and its representatives will have the right at all reasonable times during normal
business hours while the covenants in this Section are in effect, after reasonable notice to inspect,
examine and copy all books and records of the Developer and its successors and assigns relating to
the covenants described in this Section and in the Declaration.
9. Affordable Housing Reporting Buildings 4 and 5: At least annually, no later than April 1 of each
year commencing on the April 1 first following the issuance of the Certificate of Completion for
the applicable Building Minimum Improvements, the Developer shall provide a report to the EDA
evidencing that the Developer complied with the income affordability covenants during the
previous calendar year. The income affordability reporting shall be on the form entitled “Tenant
Income Certification” from the Minnesota Housing Finance Agency (MHFA HTC Form 14), or if
unavailable, any similar form. The EDA may require the Developer to provide additional
information reasonably necessary to assess the accuracy of such certification. Unless earlier
excused by the EDA, the Developer shall send affordable housing reports to the EDA until the
Declaration terminates.
10. Change in Construction Plans: If the Developer desires to make any material change in the
Construction Plans after their approval by the EDA, the Developer shall submit the proposed
change to the EDA for its approval. The term “material” means a change in the exterior elements
of the applicable Building that affects the original character, purpose as described in Section 6
hereof, and visual preference that was approved by the City.
11. City Public Improvements: The Developer will construct the following public infrastructure
improvements, as further outlined below. Final Construction documents of all public infrastructure
will be provided by the City to the Developer to be used by the Developer for construction. After
certificate of construction completion is issued and a determination of acceptance by the City
engineer, the Developer will turn over infrastructure back to control of the City.
a. Shingle Creek Parkway improvements including roadway enhancements, and
rebuilt curb, boulevard, sidewalk, and landscaping.
b. Signal and intersection improvements at Shingle Creek and new Parkway
roadway.
c. Construction of new Parkway roadway and associated utilities, connecting Shingle
Creek Parkway to John Martin Drive.
d. Regional Stormwater Pond system and associated utilities.
12. Community Benefits: The Developer will deliver, through construction of the Minimum
Improvements, the Community Benefits as further outlined in Exhibit B.
13. Restrictive Covenants: The EDA acknowledges that the Developer may utilize reciprocal easement
agreements, deed restrictions, covenants, agreements, architectural controls, master associations
and/or other means to control the use and to ensure the maintenance of the land within the
Project. No such instruments shall adversely affect the rights of the City or EDA under the
Definitive Agreement, without their consent, which consent shall not be unreasonably
BR291-386-822302.v5
withheld. The Developer shall submit any such instruments to the City and EDA for their review
and comment.
14. Maintenance: The Developer and the EDA propose that the Applicable Developer or Association
shall be responsible for all maintenance (including snow and ice removal) and repair costs
associated with the Minimum Improvements on the Property including:
x Driveways and service drives to Buildings 1-5, and surface parking stalls.
x Parking structure
x Sidewalks
x Streetlights
x Landscaping
x Streetscape improvements
x Bicycle Parking
x Plazas
x Greenway commons
The costs of such maintenance and repairs will be allocated among the owners/users of the Phases
(or applicable portion thereof), including, without limitation, the owner/user of the Entrepreneurial
Market. The City (and not the Developer) shall be responsible for the maintenance and repair of
the Parkway roadway and the other City Public Improvements described in Section 11 above.
15. Reciprocal Easement and Operating Agreement: The Developer and City will enter into a mutually
acceptable reciprocal easement and operating agreement (the “REOA”) or other easement
agreements to include, without limitation, the following key terms:
a. Developer and/or City responsibility for maintenance and operation of the
private applicable Building Minimum Improvements, road network, and other City Public
Improvements, with such costs being allocated to and among Developer, the City and/or
any other owners of applicable Building Minimum Improvements;
b. perpetual public access easements and perpetual drainage and utility
easements, in each case, over the applicable City Public Improvements and at no cost to
the City;
c. perpetual license or public access easements for greenway commons, or
other private areas that provide public benefit that the City and Developer deem
appropriate.
16. TIF District: The City established TIF District 7 on March 28, 2016. Eligible costs to be
reimbursed with tax increments must be incurred not later than June 29, 2026.
17. Public Assistance: Subject to all terms and conditions of the Definitive Agreement, the EDA
proposes to provide the Developer with up to $30,209,000 in public assistance for Qualified Costs
and Public Improvements noted in Section 11. Currently it is anticipated that the EDA will
reimburse the Developer with a percentage of Tax Increment generated from TIF District #7 for
each Building within the Minimum Improvements up to a principal amount of up to $30,209,000
(Present Value). The EDA will complete an analysis of the applicable Building the earliest of (i)
when construction is ready to commence, (ii) final GMP pricing is obtained to determine the
amount and term of the assistance to be provided to that Building, or (iii) such earlier time as may
be mutually agreed upon by the EDA and the Developer with respect to a particular Phase. The
BR291-386-822302.v5
EDA’s analysis will take into account any additional grants and subsidies (including New Markets
Tax Credits) committed to the applicable Building as well as such Building/Phase’s applicable
portion of the aggregate Gap Amount (as defined in and as may be adjusted by Section 17 below).
The allocation of the amount and term of the assistance to be provided to a Building shall not
require approval or further action by the EDA and can be completed administratively by staff and
legal counsel. Payments from TIF District 7 will be made through one or more TIF Notes (the
“Notes”) issued on a pay-as-you-go basis for an applicable Building assuming a percentage of
increment from TIF District #7 at the lesser of 5% or the Developer’s actual financing rate for such
Building. The Notes will be issued upon completion of the Public Improvements related to the
applicable Building, issuance of a CO for the applicable Building and proof of expenditure related
to the Qualified Costs for the applicable Building.
Prior to entering into the Definitive Agreement, the EDA may substitute other funding sources for
the TIF assistance contemplated in this section. These sources of funds include, but are not limited
to, grants, utility or other EDA funds, pooled TIF, and land write-down. After entering into the
Definitive Agreement, the EDA may propose substitute other funding sources for the TIF
assistance, but such substitution would be subject to the Applicable Developer’s approval.
18. Look Back: The EDA will complete a lookback for each applicable Building that receives TIF
assistance. The lookback will be completed upon stabilization and upon any sale of a Building in
that occurs within five (5) years after such Building’s certificate of occupancy, and there will be no
lookback for Buildings 4 and 5.
19. Fees: The City acknowledges the Developer made an escrow deposit of $129,327.13 for out-of-
pocket expenses for legal and financial consultant services related to TIF district creation, drafting,
negotiation and approval of the Definitive Agreement, analysis, and administrative fees associated
with this transaction. This includes costs related to the above incurred to date as well as future
expenditures.
The current escrow balance is -$171,413.75 and the Developer will be required to repay this escrow
upon approval of this Term Sheet by the EDA. The Developer will deposit additional funds as
necessary for completion of the entire project. The Developer shall pay all other normal and
customary City fees and expenses for the approval and construction of the Minimum
Improvements.
20. Minimum Assessment Agreement: The Developer and EDA will enter into a Minimum Market
Value Assessment Agreement (“MAA”) setting a minimum property tax value for the rental
portions of the various Buildings as noted below:
Phase Amount Date
Building 1 $63,600,000 January 2, 2025 for payable 2026
Building 2 $9,000,000 January 2, 2025 for payable 2026
Building 3 $49,945,000 January 2, 2025 for payable 2026
Building 4 $11,700,000 January 2, 2025 for payable 2026
Building 5 $13,650,000 January 2, 2026 for payable 2027
The Developer and the EDA propose that the dates for the applicable Building MAA may be revised
based upon timing of actual construction schedules. Revisions to the dates of the applicable
Building MAA and execution thereof shall not require approval or further action by the EDA and
can be completed administratively by staff and legal counsel, so long as such revision is no more
BR291-386-822302.v5
than 18 months from the applicable Building MAA as noted in the above schedule. Any revisions
to the dates beyond 18 months for the applicable Building MAA shall require renegotiation between
the parties.
Each MAA shall terminate on the Termination Date of the applicable TIF Note.
21. 4d Tax Classification: The Developer will be applying for 4d tax classification status for 100% of
Buildings 4 and 5.
22. Taxes: The Developer will covenant to pay property taxes and maintain customary insurance.
Developer will agree for itself and its successors and assigns that prior to the end term of the
applicable TIF Note it will not:
(a) Cause a reduction in real property taxes paid;
(b) Transfer the property or any Phases to an entity that would result in the Minimum
Improvements being exempt from property taxes;
(c) Will not seek tax exemption, deferral or abatement for the Minimum Improvements;
(d) If Developer brings a petition challenging a Market Value determination exceeding the
minimum value established in the Assessment Agreement, the Developer must inform the EDA of
such petition. The EDA will pay principal and interest on the TIF Note only to the extent of
Available Tax Increment attributable to the minimum value under the applicable MAA until final
resolution of such petition. Upon resolution of Developer’s tax petition, any Available Tax
Increment deferred and withheld will be paid, without interest thereon, to the extent payable under
the assessor’s final determination of Market Value.
23. Public Art: The Developer is obligated to expend or cause to be expended at least $275,000.00 for
public artwork to be placed in prominent locations on the Property and/or on the exterior of the
Minimum Improvements. Prior to its installation, the public artworks shall be approved by the
City, which approval shall not be unreasonably withheld.
24. Stormwater: The Developer will agree to construct the Regional Stormwater Pond system and
associated utilities in accordance with Section 11 above and subject to City review of project design
and City approval of construction costs (and public bidding, if required by law). In connection
therewith, the City proposes to pay for the cost of such public infrastructure improvements as
follows: (a) by providing a waiver of stormwater impact fees that would otherwise be payable by
the Developer of $97,250.18 per acre (approximately $1,600,000.00), and (b) by paying the
Developer, in legally available funds from the City’s stormwater fund and TIF District #3, the
difference between the actual out-of-pocket cost of such public infrastructure improvements, less
the amount of the stormwater impact fee waiver, in an aggregate amount not to exceed $1,100,000
without City written consent prior to the commencement of construction of the stormwater pond.
The Developer further acknowledges the City of Brooklyn Center may establish a storm sewer
improvement taxing district pursuant to MN Statutes 444 for purposes of funding the on-going
maintenance of such public infrastructure improvements. The proposed district will include the
property acquired by the Developer described herein, the cost of which is not to be included in the
project cost proposed to be reimbursed by the City as provided in this Section.
BR291-386-822302.v5
25. Business Subsidy: The Developer and the EDA expect that any assistance provided to the
Developer under the Contract will not constitute a “business subsidy” under Minnesota Statutes
because the assistance is for redevelopment in which the Developer’s investment in the purchase
of the Property and in site preparation is 70% or more of the assessor's current year's estimated
market value.
26. No Cross-Default: No default or Event of Default by Applicable Developer with respect to one
Phase shall constitute a default or Event of Default by another Applicable Developer for any other
Phase, and the EDA may not seek any remedies against an Applicable Developer whose actions
did not give rise to the default or Event of Default, and the rights of an Applicable Developer shall
not be limited, impaired or revoked under the Definitive Agreement or the respective TIF Note
issued or to be issued to such non-defaulting Applicable Developer.
27. Miscellaneous:
a. Grants: The EDA, the Developer, RFWM and/or PPL have applied for various grants, the
status of which is set forth in the table below.
(b) These grants have been accounted for in the Developer’s Proforma for purposes of Section
17 above. Assuming these grants are obtained and projected costs remain constant, the
Developer estimates the remaining aggregate financing gap to be $7,000,000 (the “Gap
Amount”). The Gap Amount shall increase or decrease as project costs are confirmed on a
Phase by Phase basis. To the extent additional grants are obtained with respect to a Phase
and/or New Market Tax Credit funding is obtained to support the Entrepreneurial Market
component of the project and/or Building 2 are obtained, and such amounts are in excess
of the Gap Amount (as may be adjusted) applicable to such Phase, such excess amount will
reduce the principal amount of the TIF Note(s) for the applicable Phase.
(c) Additional conditions of assistance remain under consideration.
28. Nonbinding. The Developer acknowledges that except for Section 19 above which shall be binding
upon the Developer, this Term Sheet shall not be deemed conclusive or legally binding upon either
the Developer or the EDA, and neither the Developer nor the EDA shall have any obligations
regarding the Property, the Minimum Improvements or the Public Assistance described herein,
unless and until a Definitive Agreement is approved by the EDA board and executed by both the
Developer and the EDA.
Grant Name Grant Applicant Grant Amount Grant Status
Hennepin County TOD BC EDA 595,000$ Awarded
Hennepin County CII BC EDA & Developer 750,000$ Awarded
Metropolitan Council TOD BC EDA & Developer 2,000,000$ Applied for
Metropolitan Council LCDA BC EDA & Developer 1,500,000$ Applied for
Hennepin County TOD BC EDA & Developer TBD Expected Application Jan 2023
MN DEED Redevelopment BC EDA & Developer TBD Expected Application Jan 2023
Main Street RFWM TBD Expected Application 2023
Child Care Economic Development BC EDA & RFWM 150,000$ Applied for
MHFA Deferred Loan Request PPL 173,400$ Expected Application at later date
BR291-386-822302.v5
Exhibit A
[Reserved]
Exhibit B
Community Benefits
24753585v2
EXHIBIT B – COMMUNITY BENEFITS
CODES
CG Community Good
GS Green Space
HS Housing
PA Public Artwork
TR Trails and Transportation
DIRECT COMMUNITY BENEFITS
Code Name & Benefit Description SF
CG-1 Entrepreneur Marketplace ("EMP") 27,000
Approximately 27,000 sf entrepreneurial market, constructed and turned over to CITY, as
mutually agreed upon between Developer and CITY
The Developer has committed to pay $750,000.00 for EMP startup costs (shown within the
purchase price for land for the Mixed Income development - Site 3 - and paid at closing on
the land for that site).
Use of contractors that are part of a registered building trades apprenticeship program and
work with those trades to provide job opportunities to local workers.
GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors a minimum of
60 days prior to the start of each phase of construction. Developer, City and GC agree to
develop a plan for who to engage and where to hold meetings to most effectively meet this
goal
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County (Hennepin)
workforce goals. Developer, City and GC agree to develop a plan for who to engage and
where to hold meetings to most effectively meet this goal
CG-2 RFWM [Conference] Center 16,449
Delivery of an approximately 16,500 sf community event center that is available to
community for rent
The Conference Center will be available to the City of Brooklyn Center to rent at no cost, no
less than 6 times a year. The City will be required to provide at least 3 months’ notice and
will not take priority over other events that have already been booked for a specific
date/time.
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County (Hennepin)
workforce goals. Developer, City and GC agree to develop a plan for who to engage and
where to hold meetings to most effectively meet this goal
CG-3 24 - hour Child Care Center 6,106
24-hour childcare [center]
CG-6 Regional Stormwater Mgmt System 74,200
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers. GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
Construction of regional stormwater ponding elements, to be turned over to
the City upon completion, to serve stormwater needs of approx. 65% of the
full Opportunity Site
CG-7 Public Street Connecting Shingle Creek to John Martin Dr 68,400
Fully ADA compliant development
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers.
GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
Integrated site design that connects to existing trail and sidewalk system to
connect new development with existing community
Construction of a new east-west roadway that connects Shingle Creek
Parkway with John Martin Drive, to be turned over to the City upon
completion.
Reconstruction and improvements of the intersection and signal at Shingle
Creek Parkway and the new east-west roadway, and Shingle Creek Parkway
improvements to the roadway, curb, boulevard, sidewalk, and landscaping, to
be turned over to the City upon completion.
CG-8 Street Lighting 65 total
lights
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers.
GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
GS-1 Stormwater Park And Trail System 222,900
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers. GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
Integrated site design that connects to existing trail and sidewalk system to
connect new development with existing community
GS-3 Entrepreneur Market Plaza 12,000
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers.
GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
GS-4 Community Flex Street 34,700
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers.
GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
PA-1 Public Art - Master Developer Commitment TBD
Integrated public art – commitment to seeking out and utilizing a BIPOC
artist(s) that is culturally responsive to the Brooklyn Center community and
demonstrated by having a preference to selecting a Brooklyn Center artist to
create the public artwork.
TR-1 Connection to Shingle Creek Regional Trail 12,300
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
Use of contractors that are part of a registered building trades apprenticeship
program and work with those trades to provide job opportunities to local
workers.
GC shall have a goal for 25% of committed MBE/WBE spend
GC shall have a goal to hold meet and greet sessions for local subcontractors
a minimum of 60 days prior to the start of each phase of construction.
Developer, City and GC agree to develop a plan for who to engage and where
to hold meetings to most effectively meet this goal
TR-2 Connection to Pedestrian and Bicycle Bridge 11,300
Hiring goals of 30% People of color, and Indigenous people and 10% Women.
All contractors will work in alignment with Minnesota State and County
(Hennepin) workforce goals. Developer, City and GC agree to develop a plan
for who to engage and where to hold meetings to most effectively meet this
goal
TR-4 Public Bike Parking
Explore multi-modal transportation options such as electric scooters, shared
bicycles, shared vehicles, and other “pay per use” 'transportation options
Environmental Work (CCP, test pits, testing, etc) 693,475
Compliance with any and all MPCA requirements pertaining to soil
contamination and clean-up
Comply with all recommendations identified in the adopted Environmental
Assessment Worksheet (EAW )
LEED or equivalent - Market-Rate + Entrepreneurial Market Place
Sustainable design practices: commitment to green building standards
LEED or equivalent - "Mixed-Income"
Sustainable design practices: commitment to green building standards
Solar Array - Market-Rate
Sustainable design practices: commitment to green building standards
Solar Array - "Mixed-Income"
Sustainable design practices: commitment to green building standards
INDIRECT COMMUNITY BENEFITS
Name & Benefit Description Unit
Count
The Developer has committed to pay a total of $2,000,000.00 ($1M at close
of the Market Rate and $1M at close of the Mixed Income land) as part of the
purchase price of the land, to the City of Brooklyn Center's affordable housing
trust fund.
Alatus (via PPL) – Affordable Building #1 - 60
total unit count, unit mix, and affordability levels:
0BR/Eff - 2 units @ 50% MTSP
1BR - 7 units @ 50% MTSP
2BR - 22 units @ 50% MTSP
3 BR - 9 units @ 50% MTSP
4 BR - 4 units @ 50% MTSP
0BR/Eff - 3 units @ 30% MTSP
1BR - 3 units @ 30% MTSP
2BR - 8 units @ 30% MTSP
3 BR - 1 unit @ 30% MTSP
4 BR - 1 unit @ 30% MTSP
Alatus (via PPL) – Affordable Building #2 - 70
total unit count, unit mix, and affordability levels:
0BR/Eff - 7 units @ 50% MTSP
1BR - 6 units @ 50% MTSP
2BR - 2 units @ 50% MTSP
0BR/Eff - 8 units @ 60% MTSP
1BR - 24 units @ 60% MTSP
2BR - 23 units @ 60% MTSP
Crime Prevention Through Environmental Design (CPTED) review of each
development phase to maximize public safety and inhibit crime
Exhibit B - 1
BR291-386-824586.v1
Commissioner _________________ introduced the following resolution and moved its adoption:
EDA RESOLUTION NO. 2022-____
RESOLUTION APPROVING A TERM SHEET FOR A MIXED-USE
DEVELOPMENT
WHEREAS, Alatus Brooklyn Center MD LLC, a Minnesota limited liability company (or a
limited partnership or other entity to be formed thereby or affiliated therewith, the “Developer”)
has proposed to develop and construct multiple buildings containing approximately 613
multifamily rental units with affordable levels in each building, an approximately 30,000 space for
an entrepreneurial market, construction of an approximately 26,500 square foot conference center
and related structured and surface parking (the “Project”) in the City of Brooklyn Center,
Minnesota (the “City”); and
WHEREAS, the Developer has presented a project that is consistent with the goals of
developing underutilized property and providing housing and amenities in the City, as set forth in
the Term Sheet between the Economic Development Authority of Brooklyn Center, Minnesota
(the “EDA”) and the Developer (the “Term Sheet”); and
WHEREAS, both the EDA and the Developer desire approving the Term Sheet in advance
of approving and entering into a definitive development agreement in connection with the Project;
and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of Brooklyn Center, Minnesota (the “Board”), as follows:
1. The Term Sheet as presented to the Board is hereby approved in all respects, in
substantially the form submitted, and the Executive Director of the EDA is hereby
authorized and directed to negotiate a definitive agreement consistent with the Term
Sheet on behalf of the EDA for future consideration by the Board.
2. The approval hereby given to the Term Sheet includes approval of such additional
details therein as may be necessary and appropriate and such modifications thereof,
deletions therefrom and additions thereto as may be necessary and appropriate and
approved by legal counsel to the EDA and by the Executive Director, subject to the
following conditions: (a) such modifications do not materially adversely affect the
interests of the EDA; and (b) such modifications do not contravene or violate any
policy of the EDA or applicable provision of law.
3. As set forth in the Term Sheet, execution of a definitive agreement and payment of
any assistance is subject to approval by the EDA after a public hearing as required by
Minnesota law.
_________________________ _________________________________
Date President
BR291-386-824586.v1
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.