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HomeMy WebLinkAbout2023.10.09 EDAM REGULAR SESSION10/9/23 -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 OCTOBER 9, 2023 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President April Graves at 8:05 p.m. 2. ROLL CALL President April Graves and Commissioners Marquita Butler, Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Community Development Director Jesse Anderson, City Clerk Barb Suciu, and City Attorney Jason Hill. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Butler moved and President Graves seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. September 25, 2023 – Regular Session Commissioner Lawrence-Anderson abstained from the vote. Motion passed. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION APPROVING A PURCHASE OPTION AGREEMENT WITH RESURRECTING FAITH WORLD MINISTRIES Executive Director Reggie Edwards introduced the item and invited Community Development Director Jesse Anderson to present the staff report. Community Development Director Jesse Anderson explained Resurrecting Faith is requesting an Option Agreement for the EDA-owned parcel where their project would be located, which is platted as Lot 1, Block 2 Opportunity Site Addition. Approval of an Option Agreement does not constitute approval of the project. Resurrecting Faith would still be required to submit a full and complete land use application for formal review and approval by the City prior to being able to 10/9/23 -2- DRAFT exercise the Option Agreement. The Option Agreement will, however, let Resurrecting Faith demonstrate site control and make them eligible for grant funding to help off-set the project’s financial gap. Mr. Anderson noted as part of Phase One in the Opportunity Site, Resurrecting Faith World Ministries plans to construct a single-story 26,500 square foot Conference Center with 24-hour childcare and wellness and barber suites. The project would require parkway construction as part of Alatus’ project. Mr. Anderson stated the Option Agreement provides Resurrecting Faith with exclusive rights and an option to purchase the property during the option period. The option period would go into effect at the signing of the agreement and remain in place until January 1, 2026. The applicant is required to apply for grant funding. There is an anticipated $750,000 from a main-street grant that requires the option agreement. Resurrecting Faith project has previously been identified with a land write down on the purchase price to $1, which will make the project financially feasible and allow it to be constructed within the Opportunity Site. Commissioner Jerzak asked what would happen if Alatus weren’t to move forward with building the infrastructure. If Alatus were to drop out, the City would be on the hook with the agreement through 2026. Mr. Anderson stated there will be no project if Alatus drops out. He added there haven’t been any TIF or purchase agreements with Resurrecting Faith World Ministries, and the two parties could agree to cancel the contract if there were to be no infrastructure. Commissioner Lawrence-Anderson asked if the non-profit would be paying taxes. Mr. Anderson stated the non-profit plans to utilize TIF which implies they would be paying taxes. Commissioner Jerzak asked if the $9 million base was used to preserve the tax base. City Attorney Jason Hill stated he would have to speak with the attorney who drafted the agreement in order to answer the question. Mr. Anderson stated his understanding is that the anticipated value will be in excess of $9 million. Commissioner Kragness asked if the non-profit is tax exempt. Mr. Anderson stated they would have to apply for tax exemption. The financial model relies on TIF which requires the payment of taxes. Commissioner Jerzak pointed out the $9 million assessment is based on the value on January 2, 2025. Commissioner Butler moved and President Graves seconded to adopt EDA RESOLUTION NO. __, a resolution approving a Purchase Option Agreement with Resurrecting Faith World Ministries. Motion passed unanimously. 10/9/23 -3- DRAFT 5. ADJOURNMENT Commissioner Lawrence-Anderson moved and Commissioner Jerzak seconded adjournment of the Economic Development Authority meeting at 8:15 p.m. Motion passed unanimously.