HomeMy WebLinkAbout2024.06.24 EDAPE conomic Development
Authority
City Hall Council Chambers
J une 24, 2024
AGE NDA
1.Call to Order
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is
available to the public. The packet ring binder is located at the entrance of the council
chambers.
2.Roll Call
3.Approval of Consent Agenda
The following items are considered to be routine by the Economic Development Authority (E D A)
and will been acted by one motion. There will be no separate disc ussion of these items unless a
Commissioner so requests, in whic h event the item will be removed from the c onsent agenda
and considered at the end of Commission Consideration I tems.
a.Approval of Minutes
- Motion to approve the minutes.
b.Resolution Designating the Former Target Building as Substandard and
Establishing an I nterfund L oan.
- Motion to approve a resolution designating a certain building as
structurally substandard (former Target Building).
4.Commission Consideration Items
a.Resolution A pproving the F irst Amendment to the P urchase and Development
Agreement with C Allen Homes
- Motion to approve a resolution approving first amendment to purchase and
development agreement.
Alternat Resolution Only Extending Project 1
- Motion to approve a resolution approving the first amendment to purchase
and development agreement (with respect to an extension of the time only
for project 1)
5.Adjournment
Economic Development Authority
DAT E:6/24/2024
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :Reggie Edw ards , C ity M anager
BY:Barb S uciu, A ssistant City Manager/C ity C lerk
S U B J E C T:A pproval of Minutes
Requested Council A con:
- Moon to approve the minutes.
B ackground:
I n accordance with M innesota S tate S tatute 15.17, the official records of all mee5ngs must be documented
and approved by the governing body.
B udget I ssues:
N/A
I nclusive C ommunity Engagement:
- None
A nracist/Equity Policy Effect:
- None
S trategic Priories and Values:
AT TA C H M E N TS :
D escrip5on U pload D ate Type
6.10 Minutes 6/18/2024 Backup M aterial
6/10/24 -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
JUNE 10, 2024
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 7:55 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, Recreation
Director Cordell Wiseman, Assistant City Manager/City Clerk Barb Suciu, and City Attorney
Siobhan Tolar.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Butler moved and Commissioner Jerzak seconded to approve the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION APPROVING THE TERMINATION OF THE AGREEMENT FOR
FOOD SERVICE MANAGEMENT WITH FLIK INTERNATIONAL CORP
Executive Director Reggie Edwards introduced the item and invited Recreation Director Cordell
Wiseman to present the Staff report.
Recreation Director Cordell Wiseman explained after consulting with attorneys and the Finance
Department, it was determined it would be best to terminate the food service agreement. The
agreement stipulates that the agreement may be terminated prior to the termination date by EDA
without cause at any time by delivery of 60 days written notice.
6/10/24 -2- DRAFT
Commissioner Jerzak stated he was taken aback by how the issues escalated without a Work
Session for the Council to review the matter. He asked what guardrails are in place to avoid similar
problems in the future. The unpaid funds are in excess of $1,000,000. He asked if the Heritage
Center is on par with projections. The Council needs to determine if operating the Heritage Center
is the best option for Brooklyn Center taxpayers.
Mr. Wiseman confirmed the revenue goals are being met. Staff determined it wouldn’t be fiscally
responsible to continue with the existing contract. Last year, they were in the hole of $700,000.
The staff has a plan, and they don’t foresee losing any service. There is also a Request for Proposal
process underway.
Commissioner Jerzak asked if legal has been involved in the process. The finances are not
balancing. Mr. Wiseman stated they believe the next contract will help them to draw revenue.
Commissioner Butler stated some event centers allow folks to bring in their own food from a
licensed vendor. Alternatively, some event spaces have a list of approved caterers. Mr. Wiseman
confirmed Staff is looking at different options. They hope to find an affordable option. Completely
removing catering from services would create a deficit in certain knowledge required. For
example, they wouldn’t know about the licensing requirements for third party vendors.
Commissioner Kragness asked how no one noticed the missing $1,000,000 after four years. Mr.
Wiseman stated additional measures are in place to monitor the funds. The manager doesn’t see
every bill that comes through. Also, there were COVID-19 impacts to work through. The contract
never favored the Heritage Center.
Commissioner Kragness asked if the discrepancy is something the auditors could have caught. Mr.
Wiseman stated he doesn’t know how detailed the auditors are with the Heritage Center.
Commissioner Butler stated in her full-time job, program managers will send out invoices to
finance. Finance would just assume it was right. They made a change to avoid the issue. Before
an invoice is approved, it needs to be reviewed by the director. Mr. Wiseman confirmed they had
a similar issue.
Commissioner Jerzak asked if the item needs to be voted on that evening. Legal hasn’t had enough
time to review the issue as it has arisen so suddenly. Mr. Wiseman explained the vote is time-
sensitive for the Heritage Center due to revenue sharing, Staff increasing, billing on unknown
services, and more. They don’t want another deficit at the end of the year. Plus, their busy season
is coming up.
Commissioner Lawrence-Anderson stated they should move forward with the recommended
action because it has been reviewed by the Finance Department and Dr. Edwards. She requested
more accountability measurements be put in place.
Loretta Halligan, General Manager for the Heritage Center, explained the original contract was not
favorable for the Heritage Center. She won’t say who is at fault. There is a huge profit loss because
6/10/24 -3- DRAFT
the contract favors the caterers. The Center could lose up to $2.5 million this year if the contract
stays in place.
Commissioner Kragness asked why the City wouldn’t terminate the contract as it is obviously
losing them money. She asked if the caterer had acknowledged their debt. She asked why the City
would continue to pay someone who owes the City money.
Mr. Wiseman stated two wrongs don’t make a right. The City owes money to the caterer. The
caterer and the City aren’t on the same page in terms of what the caterer owes the Heritage Center.
Commissioner Kragness pointed out the document says the caterer owes the Heritage Center
$343,647.70 for 2023. She asked if that was a calculation or a guess. Mr. Wiseman stated it is the
calculation done by the Finance Department. The caterer doesn’t agree. Commissioner Kragness
stated if there is documentation supporting the calculation, then it is a fact.
Commissioner Jerzak noted Council is supposed to trust Staff. However, the Council could use
regular reports or a Work Session to review the issue. The issue is compounding.
President Graves moved and Commissioner Kragness seconded to adopt EDA RESOLUTION
NO. 2024-02 authorizing the Economic Development Authority Executive Director to terminate
the food service management agreement between the Heritage Center of Brooklyn Center and Flik
International Corp.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Lawrence-Anderson moved and Commissioner Jerzak seconded adjournment of
the Economic Development Authority meeting at 8:24 p.m.
Motion passed unanimously.
Economic Development Authority
DAT E:6/24/2024
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :J esse A nders on, C ommunity D evelopment D irector
BY:J ason A arsvold, Ehlers
S U B J E C T:Res olu-on D esigna-ng the Former Target Building as S ubs tandard and Es tablishing an
I nterfund Loan.
Requested Council A con:
- Moon to approve a resoluon designang a certain building as structurally substandard (former Target
Building).
B ackground:
The former Target building ow ned by the E DA and located at 6100 S hingle C reek Parkway is currently
s cheduled for demoli-on. The expecta-on is that tax increment financing (T I F ) may be necessary to
facilitate future redevelopment on the site. Removal of the building, how ever, creates challenges related to
qualifying the s ite as a redevelopment T I F district in the future.
I n order for the Target property to qualify as a redevelopment T I F dis trict, tw o basic condi-ons must be
met:
(1) Parcels consis-ng of 70% of the area of the district must be occupied by buildings, s treets, u-li-es,
paved or gravel parking lots, or other similar s tructures; and
(2) More than 50 percent of the buildings, not including outbuildings , mus t be structurally substandard to a
degree requiring substan-al renova-on or clearance.
For condi-on (1) above, a parcel is not considered occupied by buildings, s treets, u-li-es, paved or gravel
parking lots , or other s imilar structures unless 15 percent of the area of the parcel contains buildings,
s treets, u-li-es, paved or gravel parking lots, or other similar s tructures.
For condi-on (2) above, structurally substandard means the buildings contain defects in s tructural elements
or a combina-on of deficiencies in essen-al u-li-es and facili-es, light and ven-la-on, fire protec-on
including adequate egress, layout and condi-on of interior par--ons, or similar factors , which defects or
deficiencies are of s ufficient total significance to jus-fy substan-al renova-on or clearance. The cost to
remedy thes e condi-ons must exceed 15 percent of the cos t of cons truc-ng a new structure of the same
s quare footage and type on the s ite.
I f the building mus t be removed in advance of a poten-al project, the E DA can document the above
condi-ons by res olu-on and declare that the property is intended to be included w ithin a future T I F
dis trict. This res olu-on mus t be adopted prior to demoli-on. This resolu-on w ill also es tablish an inter-
fund loan for project costs. The inter-fund loan would preserve the E DA’s ability to use T I F to repay itself
for any costs incurred.
To confirm the site could qualify as a redevelopment T I F dis trict, Brooklyn Center hired L H B to conduct an
independent analys is and prepare a report to document the findings . L H B’s analysis determined the site
w ould qualify as a redevelopment T I F dis trict.
I f the E DA passes the resolu-on document the qualifying condi-ons, the E DA would have up to three years
from the date of demoli-on to create a redevelopment T I F district. I f the E DA does not create a
redevelopment T I F dis trict within three years of demolis hing the building, then the opportunity to us e
redevelopment T I F as a tool for any project w ill have pas s ed. At that point, the E DA’s ability to use T I F on
this s ite would be limited to:
S pecial legis la-on to create a redevelopment T I F district, which is something that the E DA pursued
for the en-re O pportunity S ite.
Crea-on of an economic development T I F dis trict, provided 85% of the buildings and facili-es
(determined on the basis of square footage) are be used for:
(1) the manufacturing or produc-on of tangible pers onal property, including proces s ing
res ul-ng in the change in condi-on of the property;
(2) w arehousing, storage, and distribu-on of tangible pers onal property, excluding retail s ales ;
(3) res earch and development related to the ac-vi-es listed in clause (1) or (2);
(4) telemarke-ng if that ac-vity is the exclusive use of the property;
(5) tourism facili-es;
(6) s pace neces s ary for and related to the ac-vi-es listed in clauses (1) to (5); or
(7) a workforce housing project
Crea-on of a hous ing T I F dis trict, only if the dis trict includes :
(1) A rental housing project in which at leas t 20% of the units are affordable to those at 50% of
area median income (A M I ), or 40% of the units are affordable to thos e at 60% of A M I ; or
(2) A n ow ner-occupied res iden-al project in w hich at least 95% of the hous ing units are ini-ally
purchas ed and occupied by families with incomes at or below 100% A M I for a family of 2 or
fewer, or 115% of A M I for a family of 3 or more.
The E DA can, however, go ahead and create a redevelopment T I F dis trict before the end of the three-year
period even if there is no eminent project. The E DA can delay receipt of firs t increment in that district for up
to 4 years , which can pres erve more -me to get a project s tarted and s -ll benefit from the full 26 years of
tax increment collec-ons. The E DA would have up to five years from the date of cer-fica-on of the district
to enter into an agreement with a private party and provide pay-as -you-go tax increment payments that
could then extend over the life of the district.
Recommendaon
S taff recommends approving the res olu-on to preserve future T I F op-ons, as well as provide for a
mechanism to reimburs e the E DA for out of pocket cos ts from future T I F collec-ons. Passage of the
res olu-on does not obligate the E DA to create as future district or to reimburse its elf, it simply keeps the
op-on open.
B udget I ssues:
This item w ill have no immediate effect on the budget.
I nclusive C ommunity Engagement:
The property is located within the O pportunity S ite. This project represents over four years of intensive
and inclusive community-lead engagement that res ulted in a community benefits plan draFed by a ci-z en
advis ory taskforce, informed by a community-driven engagement model.
A nracist/Equity Policy Effect:
The community benefits plan is intended to promote inves tment in community without displacement and
includes provisions for deeply affordable hous ing.
S trategic Priories and Values:
S trengthen and divers ify busines s development and hous ing
AT TA C H M E N TS :
D escrip-on U pload D ate Type
Res olu-on 6/14/2024 Backup M aterial
L H B Report 6/14/2024 Backup M aterial
BR291-386-958337.v1
Commissioner _______________________ introduced the following resolution and moved its
adoption:
EDA RESOLUTION NO .____
DESIGNATING A CERTAIN BUILDING AS STRUCTURALLY
SUBSTANDARD (FORMER TARGET PROPERTY)
WHEREAS, under Minnesota Statutes, Section 469.174, Subd. 10(d), the Economic
Development Authority of the City of Brooklyn Center, Minnesota (“EDA”) is authorized to
deem parcels as occupied by structurally substandard buildings despite prior demolition or
removal of the building subject to certain terms and conditions as described in this resolution;
and
WHEREAS, the EDA intends to cause demolition of a building located on certain
property in the EDA identified in Exhibit A attached hereto (collectively, the “Designated
Property”), and may in the future include the Designated Property in one or more redevelopment
tax increment financing district as defined in Minnesota Statutes, Sections 469.174, Subd. 10.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Economic Development Authority of the City of Brooklyn Center, Minnesota (“Board”) as
follows:
1. The EDA has received from LHB, Inc. the “TIF Analysis Findings for 6100
Shingle Creek Parkway,” dated September 8, 2023 (the “Inspection Report”), finding that, based
on an inspection of the building located on the Designated Property, the sole building located
thereon was determined to be substandard under the definition set forth in the Minnesota
Statutes, Section 469.174, Subd. 10 (the “Substandard Building”).
2. Based on the Inspection Report and other information available to the Board, the
Board finds that: (a) the building located on the Designated Property is structurally substandard
within the meaning of Minnesota Statutes, Section 469.174, Subd. 10(b), since it contains defects
in structural elements or a combination of deficiencies in essential utilities and facilities, light
and ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors which defects or deficiencies are of sufficient total significance to
justify substantial renovation or clearance; (b) that the building located on the Designated
Property is not in compliance with the building code applicable to new buildings and could not
be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a
new structure of the same square footage and type on the Designated Property; and (c) more than
15% of the area of each of the tax parcels included in the Designated Property contains
buildings, streets, utilities, paved or gravel parking lots, or similar structures. The reasons and
supporting facts for this determination are included in, and the Board has relied on the finding set
forth in, the Inspection Report.
3. After the date of approval of this resolution, the Substandard Building may be
demolished or removed by the EDA, or such demolition or removal may be financed by the
EDA, or may be undertaken by a developer under a demolition and development agreement
between the developer and the EDA.
BR291-386-958337.v1
4. After the demolition and removal of the Substandard Building on the Designated
Property the EDA intends to include the Designated Property in one or more redevelopment tax
increment financing districts (a “TIF District”) pursuant to Minnesota Statutes, Sections 469.174
to 469.1794, as amended (the “TIF Act”), and to file the request for certification of such district
with the Hennepin County auditor within 3 years after the date the Substandard Building is
demolished.
5. Upon filing the request for certification of a new TIF District, the EDA will notify
the Hennepin County auditor that the original tax capacity of the Designated Property must be
adjusted to reflect the greater of (a) the current net tax capacity of the Designated Property, or (b)
the estimated market value of the Designated Property for the year in which the Substandard
Building was demolished or removed, but applying class rates for the current year, all in
accordance with Section 469.174, Subd. 10(d) of the TIF Act.
6. EDA staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
7. The EDA authorizes expenditure of available tax increments and other available
funds, in an aggregate amount not to exceed $750,000 to pay the costs of such demolition or
removal, administrative costs associated with the establishment of the TIF District , including
without limitation the preparation of the Inspection Report, legal fees, and the fees of the EDA’s
tax increment financing consultant, and certain other costs incurred in connection with the
proposed development of the TIF District in an amount to be set forth in writing by the City’s
Finance Director (the “Costs Advances”) on a temporary basis from the EDA’s General Fund or
any other fund from which such advances, from time to time, may be legally made (the “Fund”)
as an interfund loan pursuant to Minnesota Statutes, Section 469.178, Subd. 7. The terms of the
interfund loan, including the principal amount, interest to accrue thereon and maturity date shall
be as the Finance Director may specify in writing; provided that interest shall accrue at a rate
which is not greater than the greater of the rates specified under Sections 270C.40 or 549.09.
June 24, 2024
Date President
ATTEST:
Secretary
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.
BR291-386-958337.v1
EXHIBIT A
DESIGNATED PROPERTIES
The Designated Property consists of the located in the City at or near 6100 Shingle Creek
Parkway consisting of PID 35-119-21-43-0009 on which the former Target store was located
September 8, 2023
Jesse Anderson
Community Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
TIF ANALYSIS FINDINGS FOR 6100 SHINGLE CREEK PARKWAY
LHB was hired to inspect a former Target store on one parcel in Brooklyn Park, Minnesota, to determine if it meets the
definition of “Substandard” as defined by Minnesota Statutes, Section 469.174, subdivision 10. The building parcel may
potentially be part of a future Redevelopment TIF District, so will need to be compliant with all the statutes pertaining to a
Redevelopment District.
The building is located at 6100 Shingle Creek Parkway (Parcel A in Diagram 1).
Diagram 1
TIF Analysis Findings for 6100 Shingle Creek Parkway Page: 2
City of Brooklyn Center
CONCLUSION
After evaluating the condition of the building on August 2, 2023 and applying current statutory criteria for a Redevelopment
District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the building qualifies as
substandard.
The remainder of this letter and attachments describe our process and findings in detail.
MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS
The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174,
Subdivision 10(c), which states:
INTERIOR INSPECTION
“The municipality may not make such determination [that the building is structurally substandard] without an interior
inspection of the property...”
EXTERIOR INSPECTION AND OTHER MEANS
“An interior inspection of the property is not required, if the municipality finds that
(1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain
permission from the party that owns or controls the property; and
(2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard.”
DOCUMENTATION
“Written documentation of the findings and reasons why an interior inspection was not conducted must be made and
retained under section 469.175, subdivision 3, clause (1).”
QUALIFICATION REQUIREMENTS
Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied parcels:
1. Coverage Test
“…parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or
gravel parking lots…”
The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174,
Subdivision 10(e), which states:
“For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots,
or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or
gravel parking lots, or other similar structures.”
The LHB team reviewed the following parcels:
Parcel A ID Number 35-119-21-43-0009
• The parcel is approximately 87,458 sf and is 95 percent covered by buildings, parking lots or other
improvements.
TIF Analysis Findings for 6100 Shingle Creek Parkway Page: 3
City of Brooklyn Center
Findings
The parcel is covered by buildings, parking lots or other improvements, exceeding the 15 percent parcel requirement.
2. Condition of Buildings Test
Minnesota Statutes, Section 469.174, Subdivision 10(a) states:
“…and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance;”
Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states:
“For purposes of this subdivision, ‘structurally substandard’ shall mean containing defects in structural elements or a
combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate
egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance.”
We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174,
Subdivision 10(b)) defined as “structurally substandard”, due to concerns expressed by the State of Minnesota Court of
Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001.
Findings
The building exceeds the criteria required to be determined a substandard building (see the attached Building Code,
Condition Deficiency and Context Analysis Reports).
Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth
in Subdivision 10(c) which states:
“A building is not structurally substandard if it follows the building code applicable to new buildings or could be
modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the
same square footage and type on the site. The municipality may find that a building is not disqualified as structurally
substandard under the preceding sentence based on reasonably available evidence, such as the size, type, and age
of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence.”
“Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police
inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar
reliable evidence.”
LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section
469.174, Subdivision 10(c)) for the following reasons:
• The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor
and Industry website where minimum construction standards are required by law.
• Chapter 13 of the 2015 Minnesota Building Code states, “Buildings shall be designed and constructed in
accordance with the International Energy Conservation Code.” Furthermore, Minnesota Rules, Chapter
1305.0021 Subpart 9 states, “References to the International Energy Conservation Code in this code mean the
Minnesota Energy Code…”
• Chapter 11 of the 2015 Minnesota Residential Code incorporates Minnesota Rules, Chapters, 1322 and 1323
Minnesota Energy Code.
TIF Analysis Findings for 6100 Shingle Creek Parkway Page: 4
City of Brooklyn Center
• The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota
Department of Labor and Industry confirmed that the Minnesota Energy Code is being enforced throughout the
State of Minnesota.
• In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota
Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota
Energy Code is higher than buildings built prior to the enactment of the code.
Proper TIF analysis requires a comparison between the replacement value of a new building built under current code
standards with the repairs that would be necessary to bring the existing building up to current code standards. For an equal
comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction
estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code
deficiencies should also be identified in the existing structures.
Findings
The building has code deficiencies exceeding the 15 percent building code deficiency criteria required to be determined
substandard (see the attached Building Code, Condition Deficiency and Context Analysis Reports).
TEAM CREDENTIALS
MICHAEL A. FISCHER, AIA, LEED AP - PROJECT PRINCIPAL/TIF ANALYST
Michael has 34 years of experience as project principal, project manager, project designer and project architect on planning,
urban design, educational, commercial, and governmental projects. He has become an expert on Tax Increment Finance
District analysis assisting over 100 cities with strategic planning for TIF Districts. He is an Architectural Principal at LHB and
currently leads the Minneapolis office.
Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning master’s degrees in City Planning
and Real Estate Development from MIT. He has served on more than 50 committees, boards, and community task forces,
including City Council President in Superior, Wisconsin, Chair of the Duluth/Superior Metropolitan Planning Organization, and
Chair of the Edina, Minnesota Planning Commission. Most recently, he served as a member of the Edina city council and
Secretary of the Edina HRA. Michael has also managed and designed several award-winning architectural projects and was one
of four architects in the Country to receive the AIA Young Architects Citation in 1997.
PHIL FISHER – INSPECTOR
For 35 years, Phil Fisher worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools. At
the University of Minnesota, he earned his Bachelor of Science in Industrial Technology. He is a Certified Playground Safety
Inspector, Certified Plant Engineer, and is trained in Minnesota Enterprise Real Properties (MERP) Facility Condition
Assessment (FCA). His FCA training was recently applied to the Minnesota Department of Natural Resources Facilities
Condition Assessment project involving over 2,000 buildings.
TIF Analysis Findings for 6100 Shingle Creek Parkway Page: 5
City of Brooklyn Center
ATTACHMENTS
We have attached a Building Code, Condition Deficiency and Context Analysis Report, Replacement Cost Report, Code
Deficiency Report, and thumbnail photo sheets of the building.
Please contact me at (612) 752-6920 if you have any questions.
LHB, INC.
MICHAEL A. FISCHER, AIA, LEED AP
c: LHB Project No.230593
M:\23Proj\230593\300 Design\Reports\Final Report\230593 Brooklyn Center Target Letter of Finding.docx
APPENDIX A
Building Code, Condition Deficiency and Context Analysis Report
Replacement Cost Report
Code Deficiency Report
Photographs
Target Building TIF District Page 1 of 2 Building Report
LHB Project No. 230593 Parcel A – 6100 Shingle Creek Blvd, Brooklyn Center, MN 55430
Target Building Redevelopment TIF District
Building Code, Condition Deficiency and Context Analysis Report
Parcel A Brooklyn Center Target Building
Address: 6100 Shingle Creek Boulevard, Brooklyn Center, 55430
Parcel ID: 35-119-21-43-0009
Inspection Date(s) & Time(s): August 2, 2023, 1:00 PM
Inspection Type: Interior and Exterior
Summary of Deficiencies: It is our professional opinion that this building is Substandard because:
- Substantial renovation is required to correct Conditions found.
- Building Code deficiencies total more than 15% of replacement cost, NOT
including energy code deficiencies.
Estimated Replacement Cost: $13,731,613
Estimated Cost to Correct Building Code Deficiencies: $3,530,200
Percentage of Replacement Cost for Building Code Deficiencies: 25.7%
DEFECTS IN STRUCTURAL ELEMENTS
1. The metal roof decking is damaged allowing for water intrusion which is contrary to code.
COMBINATION OF DEFICIENCIES
1. Essential Utilities and Facilities
a. There is no code required accessible route to all levels of the building.
2. Light and Ventilation
a. The HVAC system does not comply with code.
3. Fire Protection/Adequate Egress
a. Exterior sidewalks are damaged creating an impediment for emergency egress which is contrary to code.
b. The exterior concrete stairs are damaged creating an impediment for emergency egress which is contrary to code.
c. Interior flooring is damaged creating an impediment for emergency egress which is contrary to code.
d. Thresholds do not comply with code for maximum height.
4. Layout and Condition of Interior Partitions/Materials
a. The interior is fire damaged and should be cleaned, repaired, and repainted.
b. Mold is present in many areas of the building.
c. Ceiling tiles are damaged or missing and should be replaced.
Target Building TIF District Page 2 of 2 Building Report
LHB Project No. 230593 Parcel A – 6100 Shingle Creek Blvd, Brooklyn Center, MN 55430
5. Exterior Construction
a. Roofing material is damaged allowing for water intrusion which is contrary to code.
b. Exterior brick is water stained.
c. Exterior joint caulking is failing, allowing for water intrusion which is contrary to code.
d. Seedlings have germinated on the roof and are growing.
e. Exterior brick had graffiti covered over with a contrasting color and the entire wall should be repainted to match.
f. The exterior concrete wall curb is damaged and should be repaired.
DESCRIPTION OF CODE DEFICIENCIES
1. Metal decking that was fire damaged should be replaced to prevent water intrusion per code.
2. A code required accessible route to all levels should be created.
3. A code-compliant HVAC system should be installed.
4. Damaged exterior sidewalks should be repaired to create a code required unimpeded means for emergency egress.
5. Damaged exterior stairs should be repaired to create a code required unimpeded means for emergency egress.
6. Damaged interior flooring should be replaced to create a code required unimpeded means for emergency egress.
7. Thresholds should be modified to comply with code.
8. Failed roofing material should be replaced to prevent water intrusion per code.
9. Failed control joint caulking should be replaced to prevent water intrusion per code.
OVERVIEW OF DEFICIENCIES
This building is currently vacant and has sustained localized fire damages to an interior wall and roof. There is smoke
damage throughout the building. The metal roof decking is damaged, allowing for water intrusion which is contrary to code.
The roofing material is damaged, allowing for water intrusion which is contrary to code. Exterior concrete sidewalks and stairs
are damaged, creating an impediment for emergency egress which is contrary to code. The flooring is damaged creating an
impediment for emergency egress which is contrary to code. There is no code required accessible route to all levels in the
building. Thresholds do not comply with code for maximum height. Exterior control joint caulking has failed allowing for water
intrusion which is contrary to code. Exterior walls should be repainted. Interior walls and ceilings should be repaired and or
replaced. Mold is present throughout the building.
ENERGY CODE DEFICIENCIES
In addition to the building code deficiencies listed above, the existing building does not comply with the current energy code.
These deficiencies are not included in the estimated costs to correct code deficiencies and are not considered in determining
whether the building is substandard.
M:\23Proj\230593\300 Design\Reports\Building Reports\6100 Shingle Creek Blvd Building Report Redevelopment District.docx
Target Building Redevelopment TIF District
Replacement Cost Report
Square Foot Cost Estimate Report Date:8/15/2023
Estimate Name:Brooklyn Center Target
Building Type:
Store, Department, 1 Story with Face Brick & Concrete Block / Rigid
Steel
Location:BROOKLYN CENTER, MN
Story Count:1
Story Height (L.F.):21
Floor Area (S.F.):120000
Labor Type:OPN
Basement Included:No
Data Release:Year 2023 Quarter 3
Cost Per Square Foot:$114.43
Building Cost:$13,731,613.47
Quantity % of Total Cost Per S.F. Cost
A Substructure 10.02% $9.97 $1,195,858.45
A1010 Standard Foundations $2.47 $296,057.65
A10101051560 Foundation wall, CIP, 4' wall height, direct chute, .148 CY/LF, 7.2 PLF,
12" thick
1418 $1.19 $143,142.14
A10101102500 Strip footing, concrete, reinforced, load 5.1 KLF, soil bearing capacity
3 KSF, 12" deep x 24" wide
1418 $0.66 $79,123.69
A10102107250 Spread footings, 3000 PSI concrete, load 75K, soil bearing capacity 3
KSF, 5' ‐ 6" square x 13" deep
109.09 $0.61 $73,791.82
A1030 Slab on Grade $7.13 $855,904.80
A10301202240 Slab on grade, 4" thick, non industrial, reinforced 120000 $7.13 $855,904.80
A2010 Basement Excavation $0.37 $43,896.00
A20101106911 Excavate and fill, 100,000 SF, 4' deep, sand, gravel, or common earth,
on site storage
120000 $0.37 $43,896.00
B Shell 34.33% $34.16 $4,099,705.61
B1010 Floor Construction $0.58 $69,546.69
B10107203550 Fireproofing, gypsum board, fire rated, 1 layer, 1/2" thick, 14" steel
column, 2 hour rating, 18 PLF
1893.82 $0.58 $69,546.69
B1020 Roof Construction $14.37 $1,724,068.80
B10201124500 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 30'x30'
bay, 28" deep, 40 PSF superimposed load, 62 PSF total load
120000 $12.61 $1,513,382.40
B10201124600 Roof, steel joists, beams, 1.5" 22 ga metal deck, on columns, 30'x30'
bay, 28" deep, 40 PSF superimposed load, 62 PSF total load, add for
column
120000 $1.76 $210,686.40
B2010 Exterior Walls $9.08 $1,089,605.01
B20101321240 Brick wall, composite double wythe, standard face/CMU back‐up, 8"
thick, styrofoam core fill
26800.2 $9.08 $1,089,605.01
B2020 Exterior Windows $2.09 $251,331.38
B20202101450 Aluminum flush tube frame, for 1/4"glass, 1‐3/4" x 4‐1/2", 5'x6'
opening, 1 intermediate horizontal
2977.8 $1.06 $127,450.14
B20202202300 Glazing panel, plate glass, 3/8" thick, tinted 2977.8 $1.03 $123,881.24
B2030 Exterior Doors $0.55 $65,870.57
B20301105850 Doors, stainless steel & glass, balanced, standard, premium, 3'‐0" x 7'‐
0" opening
2.18 $0.42 $50,660.18
B20302203450 Door, steel 18 gauge, hollow metal, 1 door with frame, no label, 3'‐0"
x 7'‐0" opening
4.36 $0.13 $15,210.39
B3010 Roof Coverings $7.37 $884,420.62
B30101051400 Roofing, asphalt flood coat, gravel, base sheet, 3 plies 15# asphalt felt,
mopped
120000 $4.04 $484,807.20
B30103203090 Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite 120000 $2.72 $326,485.20
B30104201400 Roof edges, aluminum, duranodic, .050" thick, 6" face 1418 $0.47 $56,668.03
B30106305100 Gravel stop, aluminum, extruded, 4", mill finish, .050" thick 1418 $0.14 $16,460.19
B3020 Roof Openings $0.12 $14,862.54
Costs are derived from a building model with basic components.
Scope differences and market conditions can cause costs to vary significantly.
Target Building TIF District
LHB Project No. 230593.00 Page 1 of 3
Replacement Cost Report
Parcel A - 6100 Shingles Creek Blvd, Brooklyn Center, MN 55430
B30202100300 Roof hatch, with curb, 1" fiberglass insulation, 2'‐6" x 3'‐0", galvanized
steel, 165 lbs
2 $0.04 $4,343.08
B30202102100 Smoke hatch, unlabeled, galvanized, 2'‐6" x 3', not incl hand winch
operator
4 $0.09 $10,519.46
C Interiors 21.93% $21.82 $2,617,966.50
C1010 Partitions $2.65 $318,012.90
C10101265800 Metal partition, 5/8"fire rated gypsum board face, 1/4" sound
deadening gypsum board, 2‐1/2" @ 24", same opposite face, no
insulation
20000 $1.30 $156,334.80
C10107101001 1/2" fire rated gypsum board, taped & finished, painted on metal
furring
26800.2 $1.35 $161,678.10
C1020 Interior Doors $1.85 $221,663.40
C10201022600 Door, single leaf, kd steel frame, hollow metal, commercial quality,
flush, 3'‐0" x 7'‐0" x 1‐3/8"
200 $1.85 $221,663.40
C3010 Wall Finishes $0.32 $38,646.00
C30102300140 Painting, interior on plaster and drywall, walls & ceilings, roller work,
primer & 2 coats
40000 $0.32 $38,646.00
C3020 Floor Finishes $9.62 $1,154,367.00
C30204100080 Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24", 35 oz 60000 $2.66 $319,622.40
C30204101740 Tile, porcelain type, minimum 60000 $6.96 $834,744.60
C3030 Ceiling Finishes $7.38 $885,277.20
C30302107200 Acoustic ceilings, 5/8" plastic coated mineral fiber, 12" x 12" tile, 25
ga channel grid, adhesive back support
120000 $7.38 $885,277.20
D Services 33.73% $33.56 $4,027,002.89
D1010 Elevators and Lifts $0.71 $85,088.40
D10101102200 Hydraulic, passenger elevator, 3000 lb, 2 floors, 100 FPM 1 $0.71 $85,088.40
D2010 Plumbing Fixtures $2.52 $302,431.93
D20101102080 Water closet, vitreous china, bowl only with flush valve, wall hung 42.65 $1.44 $173,230.77
D20102102000 Urinal, vitreous china, wall hung 5.56 $0.08 $9,560.25
D20103101560 Lavatory w/trim, vanity top, PE on CI, 20" x 18" 16.69 $0.28 $34,093.69
D20104404340 Service sink w/trim, PE on CI,wall hung w/rim guard, 24" x 20" 7.42 $0.44 $53,060.59
D20108201880 Water cooler, electric, wall hung, dual height, 14.3 GPH 7.42 $0.27 $32,486.63
D2020 Domestic Water Distribution $0.35 $42,004.90
D20202502220 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480
GPH
1.85 $0.35 $42,004.90
D2040 Rain Water Drainage $0.90 $107,736.49
D20402104360 Roof drain, CI, soil,single hub, 6" diam, 10' high 20.4 $0.59 $70,389.69
D20402104400 Roof drain, CI, soil,single hub, 6" diam, for each additional foot add 711.27 $0.31 $37,346.80
D3050 Terminal & Package Units $9.73 $1,167,504.00
D30501502560 Rooftop, single zone, air conditioner, department stores, 10,000 SF,
29.17 ton
120000 $9.73 $1,167,504.00
D4010 Sprinklers $4.17 $500,546.40
D40104100640 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 50,000 SF 120000 $4.17 $500,546.40
D4020 Standpipes $0.44 $52,216.53
D40203101580 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe, 1
floor
1.09 $0.21 $25,096.31
D40203101600 Wet standpipe risers, class III, steel, black, sch 40, 6" diam pipe,
additional floors
4.36 $0.23 $27,120.22
D5010 Electrical Service/Distribution $0.94 $113,137.45
D50101200480 Overhead service installation, includes breakers, metering, 20'
conduit & wire, 3 phase, 4 wire, 120/208 V, 1200 A
1.25 $0.32 $38,116.75
D50102300480 Feeder installation 600 V, including RGS conduit and XHHW wire,
1200 A
100 $0.39 $46,405.50
D50102400320 Switchgear installation, incl switchboard, panels & circuit breaker,
120/208 V, 3 phase, 1200 A
1.2 $0.24 $28,615.20
D5020 Lighting and Branch Wiring $12.38 $1,485,293.77
D50201100240 Receptacles incl plate, box, conduit, wire, 2.5 per 1000 SF, .3 W per
SF, with transformer
80400 $1.69 $202,791.31
D50201350200 Miscellaneous power, to .5 watts 120000 $0.18 $22,020.00
D50201400240 Central air conditioning power, 3 watts 144000 $0.93 $111,936.96
D50202100520 Fluorescent fixtures recess mounted in ceiling, 1.6 watt per SF, 40 FC,
10 fixtures @32watt per 1000 SF
150000 $9.57 $1,148,545.50
Target Building TIF District
LHB Project No. 230593.00 Page 2 of 3
Replacement Cost Report
Parcel A - 6100 Shingles Creek Blvd, Brooklyn Center, MN 55430
D5030 Communications and Security $1.43 $171,043.02
D50309100456 Communication and alarm systems, fire detection, addressable, 100
detectors, includes outlets, boxes, conduit and wire
1.09 $0.79 $94,839.06
D50309100462 Fire alarm command center, addressable with voice, excl. wire &
conduit
1.09 $0.12 $14,734.36
D50309200102 Internet wiring, 2 data/voice outlets per 1000 S.F. 84 $0.51 $61,469.60
E Equipment & Furnishings 0.00% $0.00 $0.00
E1090 Other Equipment $0.00 $0.00
F Special Construction 0.00% $0.00 $0.00
G Building Sitework 0.00% $0.00 $0.00
100% $99.50 $11,940,533.45
15.0% $14.93 $1,791,080.02
0.0% $0.00 $0.00
0.0% $0.00 $0.00
Total Building Cost $114.43 $13,731,613.47
Contractor Fees (General Conditions,Overhead,Profit)
Architectural Fees
SubTotal
User Fees
Target Building TIF District
LHB Project No. 230593.00 Page 3 of 3
Replacement Cost Report
Parcel A - 6100 Shingles Creek Blvd, Brooklyn Center, MN 55430
Target Building Redevelopment TIF District
Code Deficiency Cost Report
Parcel A - 6100 Shingle Creek Boulevard, Brooklyn Park, Minnesota 55430 Building Name or Type
Parcel ID 35-119-21-43-0009 Brooklyn Center Target Building
Code Related Cost Items Unit Cost Units Unit Quantity Total
Accessibility Items
Accessible Route
Create an accessible route to all levels of the building 0.71$ SF 120,000 85,200.00$
Structural Elements
Roof Decking
Repair damaged roof decking to prevent water intrusion per code 1.76$ SF 120,000 211,200.00$
Exiting
Thresholds
Modify thresholds to comply with code for maximum height 1,000.00$ Lump 1 1,000.00$
Sidewalks
Repair damaged sidewalks to create a code required unimpeded means
for emergency egress 5,000.00$ Lump 1 5,000.00$
Repair damaged concrete stairs to create a code required unimpeded
means for emergency egress 1,000.00$ Lump 1 1,000.00$
Interior Flooring
Replace damaged interior flooring to create a code required unimpeded
means for emergency egress 9.62$ SF 120,000 1,154,400.00$
Fire Protection
*No Deficiencies Observed*-$
Exterior Construction
Caulking
Replace failed caulking to prevent water intrusion per code 0.05$ SF 120,000 6,000.00$
Roof Construction
Roofing Material
Replace failed roofing material to prevent water intrusion per code 7.49$ SF 120,000 898,800.00$
Mechanical - Electrical
Mechanical
Install a code compliant HVAC system 9.73$ 120,000 1,167,600.00$
Total Code Improvements 3,530,200$
Target Building TIF District
LHB Project No. 230593.00 Page 1 of 1
Code Deficiency Cost Report
Parcel A - 6100 Shingle Creek Blvd, Brooklyn Center, MN 55430
IMG_9610.JPG
IMG_9613.JPG
IMG_9617.JPG
IMG_9620.JPG
IMG_9611.JPG
IMG_9615.JPG
IMG_9618.JPG
IMG_9621.JPG
IMG_9612.JPG
IMG_9616.JPG
IMG_9619.JPG
IMG_9622.JPG
Target Building Redevelopment TIF District | Parcel A: 35-119-21-43-0009
IMG_9623.JPG
IMG_9626.JPG
IMG_9629.JPG
IMG_9632.JPG
IMG_9624.JPG
IMG_9627.JPG
IMG_9630.JPG
IMG_9633.JPG
IMG_9625.JPG
IMG_9628.JPG
IMG_9631.JPG
IMG_9634.JPG
Target Building Redevelopment TIF District | Parcel A: 35-119-21-43-0009
IMG_9635.JPG
IMG_9638.JPG
IMG_9641.JPG
IMG_9644.JPG
IMG_9636.JPG
IMG_9639.JPG
IMG_9642.JPG
IMG_9645.JPG
IMG_9637.JPG
IMG_9640.JPG
IMG_9643.JPG
IMG_9646.JPG
Target Building Redevelopment TIF District | Parcel A: 35-119-21-43-0009
IMG_9647.JPG
IMG_9650.JPG
IMG_9653.JPG
IMG_9656.JPG
IMG_9648.JPG
IMG_9651.JPG
IMG_9654.JPG
IMG_9657.JPG
IMG_9649.JPG
IMG_9652.JPG
IMG_9655.JPG
IMG_9658.JPG
Target Building Redevelopment TIF District | Parcel A: 35-119-21-43-0009
IMG_9659.JPG
IMG_9662.JPG
IMG_9665.JPG
IMG_9660.JPG
IMG_9663.JPG
IMG_9666.JPG
IMG_9661.JPG
IMG_9664.JPG
Target Building Redevelopment TIF District | Parcel A: 35-119-21-43-0009
Economic Development Authority
DAT E:6/24/2024
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :J esse A nders on, C ommunity D evelopment D irector
BY:J ason A arsvold, Ehlers
S U B J E C T:Res olu-on A pproving the F irs t A mendment to the P urchas e and D evelopment A greement
with C A llen H omes
Requested Council A con:
- Moon to approve a resoluon approving first amendment to purchase and development agreement.
A lternat Resoluon Only Extending P roject 1
- Moon to approve a resoluon approving the first amendment to purchase and development agreement
(w ith respect to an extension of the me only for project 1)
B ackground:
I n S eptember 2020 the E DA entered into an agreement with C . A lan H omes, L L C to purchase E DA -ow ned
proper-es located at 6025, 6031, 6037, and 6045 Brooklyn Boulevard (P roject 1), as well as proper-es
located at 6921, 6927, 6933, and 6939 Brooklyn Boulevard (P roject 2). The proper-es were s old to C.
A llen on D ecember 29, 2020.
C. A llen H omes also entered into Performance A greements with the City requiring cons truc-on of 13 total
tri-plex rental units no later than D ecember 31, 2022 (for P roject 1) and D ecember 31, 2023 (for P roject 2).
C. A llen commenced construc-on of the infras tructure and 2 of the tri-plex buildings in P roject 1 but did not
complete construc-on within the agreed upon -meframe. I n addi-on, the lender for the project has since
ini-ated the s teps necessary to foreclos e on the property.
S taff w orked pro ac-vely w ith C. A llen H omes over the last several months to iden-fy the C ity and E DA
ac-ons neces s ary to get the project back on track. Thes e include a renew ed planning applica-on, an
amended P urchase and D evelopment A greement with E DA , and amended performance A greements with
the C ity. C . A llen H omes has come forward to take the neces s ary ac-ons for the project and is as king the
E DA to extend the -meframes for comple-on of its projects within the P urchase and D evelopment
A greement to D ecember 31, 2025. The amended P urchas e and D evelopment A greement prepared for E DA
cons idera-on extends all the -meframes for comple-on to D ecember 31, 2025, leaving all other
requirements in place.
Recommendaon and A lternaves
G iven pas t E DA and C ity C ouncil direc-on on the s ite and a review of the alterna-ve outcomes for these
proper-es, s taff recommends approval of the amendment. C. A llen’s two exis -ng tri-plex buildings in
P roject 1 are high quality rental buildings that meet the original development objec-ves on the site. The
opportunity to finis h this development as originally an-cipated provides for the des ired outcome w ith
limited addi-onal resource alloca-on from the C ity.
I f the amendments are not approved, there may be a foreclosure on the s ite. I f the property is foreclos ed
upon, the future ow ner w ill be bound by the provisions of the original P urchas e and D evelopment
A greement. This is further outlined in the aBached memorandum from Kennedy and G raven.
I f the E DA w ere to take the property back, the development process would have to begin again from the
s tart and will likely take more -me and res ources to complete. For these reasons, providing more -me to
s ee if C. A llen homes can complete project is the preferred path forward.
S taff has als o provided an alterna-ve resolu-on in the event that the Council would prefer to only approve
an extension for P roject 1 at the S outhern s ite.
B udget I ssues:
I nclusive C ommunity Engagement:
A nracist/Equity Policy Effect:
S trategic Priories and Values:
S trengthen and divers ify busines s development and hous ing
AT TA C H M E N TS :
D escrip-on U pload D ate Type
Res olu-on 6/17/2024 Resolu-on LeBer
F irs t A mendment ot P urchase A greement and D evelopment
A greement 6/17/2024 Backup M aterial
M emo F rom City ABorney 6/17/2024 Backup M aterial
A lternate Res olu-on 6/19/2024 Resolu-on LeBer
BR305\162\958738.v1
Commissioner _________________ introduced the following resolution and moved its adoption:
EDA RESOLUTION NO. 2024-____
RESOLUTION APPROVING FIRST AMENDMENT TO
PURCHASE AND DEVELOPMENT AGREEMENT
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Economic
Development Authority of the City of Brooklyn Center, Minnesota (the “Authority”) as follows:
Section 1. Recitals.
1.01. The EDA and C. Alan Homes, LLC (the “Developer”) entered into that certain
Purchase and Development Agreement on September 14, 2020 (the “Agreement”), relating to the
purchase and development of the property legally described on the attached Exhibit A (the
“Property”); and
1.02. The Agreement required the Developer to construct 13 three-bedroom triplexes on
the Property (the “Minimum Improvements”) no later than 18 months of the date of the deed which
is dated December 29, 2020; and
1.03. The Developer has commenced construction of the Minimum Improvements but
has not completed construction of the Minimum Improvements; and
1.04. The Developer has requested an extension to the amount of time that it has to
construct the Minimum Improvements to December 31, 2025; and
1.05. The EDA is willing to agree to this extension of time; and
1.06. The EDA and the Developer desire to amend the Agreement in order to allow for
the Developer until December 31, 2025 to construct the Minimum Improvements as more
specifically set forth herein; and
Section 2. Authority Approval.
2.01. The Board hereby approves the First Amendment to Purchase and Development
Agreement (the “First Amendment”) in substantially the form presented to the Board, subject to
modifications that do not alter the substance of the transaction and that are approved by the
President and Executive Director, provided that execution of the Agreement by those officials shall
be conclusive evidence of their approval.
2.02. Authority staff and officials are authorized to take all actions necessary to perform
the Authority’s obligations under the Agreement and the First Amendment as a whole, including
without limitation execution of any documents to which the Authority is a party referenced in or
BR305\162\958738.v1
attached to the Agreement and the First Amendment and all as described in the Agreement and the
First Amendment.
_________________________
President
__________________________
Date
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.
A-1
BR305\162\958738.v1
EXHIBIT A
Legal Description of the Property
Parcel 1:
Lot 1, except that part thereof which lies Northeasterly of a line run parallel with and distant 42
feet Southwesterly of the following described line:
From a point on the South line of Section 34, Township 119 North, Range 21 West, distant
1741.08 feet West of the Southeast corner thereof, run Northwesterly at an angle of 68 degrees
01 minutes 52.3 seconds with said South section line for 432.38 feet to the point of beginning of
the line to be described; thence run Southeasterly along the last described course for 100 feet;
thence deflect to the right on a 2 degree 00 minutes curve (delta angle 17 degree 20 minutes 35.2
seconds) for 867.16 feet and there terminating, Block 1, Pearson's Northport 3rd Addition.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1392052
Parcel 2:
Lot 2, Block 1, Pearson's Northport 3rd Addition, except that part described as follows:
Beginning at the
Southeast corner of said Lot 2; thence run Westerly on the South line of said Lot 2 for 1.72 feet;
thence run Northerly on a curve deflecting to the left and having a radius of 2822.79 feet to a
point on the North line of said Lot 2, distant 5.20 feet Westerly of the Northeast corner of said
Lot 2; thence run Easterly on the north line of said Lot 2 to the Northeast corner of said Lot 2;
thence run Southerly on the East line of said Lot 2 to the point of beginning
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1316934
Parcel 3:
That part of Lot 4, Block 5, lying South of a line drawn parallel with and distant 138 feet North
of, measured at right angles to, the South line of said Lot 4, Wangstad's Brooklyn Terrace.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1483315
Parcel 4:
That part of Lot 4, Block 5 lying North of a line drawn parallel with and distant 138 feet North
of, measured at right angles to, the South line of said Lot 4, Wangstad's Brooklyn Terrace
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1483312
A-1
BR305\162\958738.v1
Parcel 5:
All that part of Lot 1, which lies Southwesterly of a line run parallel with and distant 42 feet
Southwesterly of the following described line: Beginning at a point on the South line of Section 27,
Township 119, Range 21, distant 1607.8 feet West of the South Quarter corner thereof; thence run
Northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South Section line for 1000
feet and there terminating, Block 1, Sunset Manor.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1427277
Parcel 6:
Lot 2, except that part thereof which lies Northeasterly of a line run parallel with and distant 42 feet
Southwesterly of the following described line: Beginning at a point on the South line of Section 27,
Township 119 North, Range 21 West distant 1607.8 feet West of the South Quarter corner thereof;
thence run Northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South Section
Line for 800 feet and there terminating, Block 1, Sunset Manor.
Hennepin County, Minnesota.
Torrens Property
Torrens Certificate No. 810173
Parcel 7:
Lot 3, Block 1, Sunset Manor.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1377906
Parcel 8:
That part of Lot 4, Block 1, Sunset Manor, which lies southwesterly of a line run parallel with and
distant 42 feet southwesterly of the following described line: Beginning at a point on the South line of
Section 27, Township 119 North, Range 21 West distant 1607.8 feet West of the South quarter corner
thereof; thence run northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South
Section line for 800 feet and there terminating.
Hennepin County, Minnesota
Torrens Property
Torrens Certificates No. 1486581
A-1
BR305\162\953590.v1
FIRST AMENDMENT TO PURCHASE AND DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO PURCHASE AND DEVELOPMENT AGREEMENT
(this “First Amendment”) is entered into this ___ day of _____________, 2024, by C. Alan Homes,
LLC, a Minnesota limited liability company (the “Developer”) and the Economic Development
Authority of the City of Brooklyn Center, Minnesota, a Minnesota body corporate and politic (the
“EDA”).
R E C I T A L S
WHEREAS, the EDA and the Developer entered into that certain Purchase and
Development Agreement on September 14, 2020, recorded as Document No.
__________________ (the “Agreement”), relating to the purchase and development of the
property legally described on the attached Exhibit A (the “Property”); and
WHEREAS, the Agreement required the Developer to construct 13 three-bedroom
triplexes on the Property (the “Minimum Improvements”) no later than 18 months of the date of
the deed which is dated December 29, 2020; and
WHEREAS, the Developer has commenced construction of the Minimum Improvements
but has not completed construction of the Minimum Improvements; and
WHEREAS, the Developer has requested an extension to the amount of time that it has to
construct the Minimum Improvements to December 31, 2025; and
WHEREAS, the EDA is willing to agree to this extension of time; and
WHEREAS, the EDA and the Developer desire to amend the Agreement in order to allow
for the Developer until December 31, 2025 to construct the Minimum Improvements as more
specifically set forth herein; and
NOW, THEREFORE, in consideration of the foregoing and the covenants and obligations
contained in this Amendment and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is agreed by and between the EDA and the
Developer as follows:
A-1
BR305\162\953590.v1
1. Paragraph (B) of Section 14 of the Agreement shall be amended to read as follows:
B. The Minimum Improvements shall consist of 13 triplexes with three
bedrooms and two bathrooms per unit and shall be constructed substantially
in accordance with the plans on file in Brooklyn Center City Hall.
Construction of the Minimum Improvements must be substantially
completed no later than December 31, 2025. Construction will be
considered substantially complete when the final certificate of occupancy
has been issued by the City of Brooklyn Center building official.
The remainder of Section 14 shall remain unchanged.
2. Amendment Controls; Ratification and Affirmation. In the event that the terms of
this Amendment and the Agreement are held to be inconsistent, the terms of this Amendment shall
control. The parties each agree and warrant that, in all other respects, the Agreement is
unmodified, in full force and effect, and each party hereby ratifies and affirms the Agreement and
any terms contained therein not otherwise modified by this Amendment.
3. Counterparts. This Amendment may be executed in counterparts, each of which
shall be deemed an original but all of which, taken together, shall constitute one and the same
instrument. Each party may rely upon facsimile or electronic mail counterparts of this Amendment
signed by the other party with the same effect as if such party had received an original counterpart
signed by such other party.
[Remainder of page intentionally left blank.]
A-1
BR305\162\953590.v1
IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date
first written above.
DEVELOPER:
C. ALAN HOMES, LLC
By: _____________________________________
Its: _____________________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ____ day of ________________,
2024, by _____________ as ______________________ of C. Alan Homes, LLC, a Minnesota
limited liability company, on behalf of the company.
________________________________________
Notary Public
A-1
BR305\162\953590.v1
EDA:
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER,
MINNESOTA
By:
Its: President
By:
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of __________________,
2024, by ______________________ and _____________________, the President and the
Executive Director, respectively, of the Economic Development Authority of the City of Brooklyn
Center, Minnesota, a Minnesota body corporate and politic on behalf of the Authority.
________________________________________
Notary Public
This instrument was drafted by:
Kennedy & Graven, Chartered (SJS)
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
A-1
BR305\162\953590.v1
EXHIBIT A
Legal Description of the Property
Parcel 1:
Lot 1, except that part thereof which lies Northeasterly of a line run parallel with and distant 42
feet Southwesterly of the following described line:
From a point on the South line of Section 34, Township 119 North, Range 21 West, distant
1741.08 feet West of the Southeast corner thereof, run Northwesterly at an angle of 68 degrees
01 minutes 52.3 seconds with said South section line for 432.38 feet to the point of beginning of
the line to be described; thence run Southeasterly along the last described course for 100 feet;
thence deflect to the right on a 2 degree 00 minutes curve (delta angle 17 degree 20 minutes 35.2
seconds) for 867.16 feet and there terminating, Block 1, Pearson's Northport 3rd Addition.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1392052
Parcel 2:
Lot 2, Block 1, Pearson's Northport 3rd Addition, except that part described as follows:
Beginning at the
Southeast corner of said Lot 2; thence run Westerly on the South line of said Lot 2 for 1.72 feet;
thence run Northerly on a curve deflecting to the left and having a radius of 2822.79 feet to a
point on the North line of said Lot 2, distant 5.20 feet Westerly of the Northeast corner of said
Lot 2; thence run Easterly on the north line of said Lot 2 to the Northeast corner of said Lot 2;
thence run Southerly on the East line of said Lot 2 to the point of beginning
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1316934
Parcel 3:
That part of Lot 4, Block 5, lying South of a line drawn parallel with and distant 138 feet North
of, measured at right angles to, the South line of said Lot 4, Wangstad's Brooklyn Terrace.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1483315
Parcel 4:
That part of Lot 4, Block 5 lying North of a line drawn parallel with and distant 138 feet North
of, measured at right angles to, the South line of said Lot 4, Wangstad's Brooklyn Terrace
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1483312
6
BR305\162\953590.v1
Parcel 5:
All that part of Lot 1, which lies Southwesterly of a line run parallel with and distant 42 feet
Southwesterly of the following described line: Beginning at a point on the South line of Section
27, Township 119, Range 21, distant 1607.8 feet West of the South Quarter corner thereof;
thence run Northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South
Section line for 1000 feet and there terminating, Block 1, Sunset Manor.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1427277
Parcel 6:
Lot 2, except that part thereof which lies Northeasterly of a line run parallel with and distant 42
feet Southwesterly of the following described line: Beginning at a point on the South line of
Section 27, Township 119 North, Range 21 West distant 1607.8 feet West of the South Quarter
corner thereof; thence run Northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with
said South Section Line for 800 feet and there terminating, Block 1, Sunset Manor.
Hennepin County, Minnesota.
Torrens Property
Torrens Certificate No. 810173
Parcel 7:
Lot 3, Block 1, Sunset Manor.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1377906
Parcel 8:
That part of Lot 4, Block 1, Sunset Manor, which lies southwesterly of a line run parallel with
and distant 42 feet southwesterly of the following described line: Beginning at a point on the
South line of Section 27, Township 119 North, Range 21 West distant 1607.8 feet West of the
South quarter corner thereof; thence run northwesterly at an angle of 53 degrees 20 minutes 37.5
seconds with said South Section line for 800 feet and there terminating.
Hennepin County, Minnesota
Torrens Property
Torrens Certificates No. 1486581
1
BR305\162\953626.v1
Kennedy Sarah J. Sonsalla
Fifth Street Towers, Suite 700
150 South Fifth Street
Minneapolis MN 55402
&
Graven (612) 337-9284 telephone
(612) 337-9310 fax
ssonsalla@kennedy-graven.com
http://www.kennedy-graven.com
C H A R T E R E D
MEMORANDUM
Date: May 17, 2024
To: Ginny McIntosh
From: Sarah Sonsalla and Jenny Boulton
Re: C. Alan Homes Foreclosure Issues
It is my understanding that the City and the EDA are concerned that the property that was
purchased for development by C. Alan Homes may be foreclosed upon.
The Purchase and Development Agreement that was entered into by the EDA and C. Alan
Homes for C. Alan’s purchase and development of the property contains a reverter that requires the
property to revert back to the EDA if the minimum improvements are not constructed within a certain
amount of time. The Purchase and Development Agreement was recorded prior to any mortgages
being recorded against the property and no lenders required the EDA to subordinate the Purchase and
Development Agreement. Therefore, if a future owner of the property acquires the property through
foreclosure, the property would remain subject to the obligations of the developer in the Purchase and
Development Agreement.
The property is also subject to a Declaration of Restrictive Covenants (requiring the property
to remain as affordable housing for a period of 15 years). It should be noted that Section 1(b) of the
Declaration of Restrictive Covenants would allow for its termination as a result of the foreclosure.
The performance agreements that were entered into by the City and C. Alan Homes for certain
improvements on the property were not recorded. Therefore, the new owner of the property would
not be subjected to the terms and conditions of these performance agreements. However, it is
presumed that the new owner would need to enter into new performance agreements with the City in
order to complete the projects.
Please contact us if you have any questions. Thank you.
BR305\162\959365.v1
Commissioner _________________ introduced the following resolution and moved its adoption:
EDA RESOLUTION NO. 2024-____
RESOLUTION APPROVING THE FIRST AMENDMENT TO
PURCHASE AND DEVELOPMENT AGREEMENT (WITH
RESPECT TO AN EXTENSION OF TIME ONLY FOR
PROJECT 1)
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Economic
Development Authority of the City of Brooklyn Center, Minnesota (the “Authority”) as follows:
Section 1. Recitals.
1.01. The EDA and C. Alan Homes, LLC (the “Developer”) entered into that certain
Purchase and Development Agreement on September 14, 2020 (the “Agreement”), relating to the
purchase and development of the property legally described on the attached Exhibit A (the
“Property”); and
1.02. The Agreement required the Developer to construct 13 three-bedroom triplexes on
the Property (the “Minimum Improvements”) no later than 18 months of the date of the deed which
is dated December 29, 2020; and
1.03. The development of the Property is divided into two projects, Project 1 being the
property located at 6025, 6031, 6037, and 6045 Brooklyn Boulevard and Project 2 being the
property located at 6921, 6927, 6933, and 6939 Brooklyn Boulevard
1.03. The Developer has commenced construction of the Minimum Improvements with
respect to Project 1 but has not completed construction of the Minimum Improvements on Project
1. The Developer has not commenced construction of any of the Minimum Improvements with
respect to Project 2; and
1.04. The Developer has requested an extension to the amount of time that it has to
construct the Minimum Improvements with respect to both Project 1 and Project 2 to December
31, 2025; and
1.05. The EDA is willing to agree to this extension of time with respect to Project 1; and
1.06. The EDA and the Developer desire to amend the Agreement in order to allow for
the Developer until December 31, 2025 to construct the Minimum Improvements with respect to
Project 1 as more specifically set forth herein; and
Section 2. Authority Approval.
BR305\162\959365.v1
2.01. The Board hereby directs staff to revise the First Amendment to Purchase and
Development Agreement (the “First Amendment”) so that it no longer allows for extension with
respect to Project 2. Said revisions must be approved by the President and Executive Director,
provided that execution of the Agreement by those officials shall be conclusive evidence of their
approval.
2.02. Authority staff and officials are authorized to take all actions necessary to perform
the Authority’s obligations under the Agreement and the First Amendment as a whole, including
without limitation execution of any documents to which the Authority is a party referenced in or
attached to the Agreement and the First Amendment and all as described in the Agreement and the
First Amendment.
_________________________
President
__________________________
Date
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.
A-1
BR305\162\959365.v1
EXHIBIT A
Legal Description of the Property
Parcel 1:
Lot 1, except that part thereof which lies Northeasterly of a line run parallel with and distant 42
feet Southwesterly of the following described line:
From a point on the South line of Section 34, Township 119 North, Range 21 West, distant
1741.08 feet West of the Southeast corner thereof, run Northwesterly at an angle of 68 degrees
01 minutes 52.3 seconds with said South section line for 432.38 feet to the point of beginning of
the line to be described; thence run Southeasterly along the last described course for 100 feet;
thence deflect to the right on a 2 degree 00 minutes curve (delta angle 17 degree 20 minutes 35.2
seconds) for 867.16 feet and there terminating, Block 1, Pearson's Northport 3rd Addition.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1392052
Parcel 2:
Lot 2, Block 1, Pearson's Northport 3rd Addition, except that part described as follows:
Beginning at the
Southeast corner of said Lot 2; thence run Westerly on the South line of said Lot 2 for 1.72 feet;
thence run Northerly on a curve deflecting to the left and having a radius of 2822.79 feet to a
point on the North line of said Lot 2, distant 5.20 feet Westerly of the Northeast corner of said
Lot 2; thence run Easterly on the north line of said Lot 2 to the Northeast corner of said Lot 2;
thence run Southerly on the East line of said Lot 2 to the point of beginning
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1316934
Parcel 3:
That part of Lot 4, Block 5, lying South of a line drawn parallel with and distant 138 feet North
of, measured at right angles to, the South line of said Lot 4, Wangstad's Brooklyn Terrace.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1483315
Parcel 4:
That part of Lot 4, Block 5 lying North of a line drawn parallel with and distant 138 feet North
of, measured at right angles to, the South line of said Lot 4, Wangstad's Brooklyn Terrace
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1483312
A-1
BR305\162\959365.v1
Parcel 5:
All that part of Lot 1, which lies Southwesterly of a line run parallel with and distant 42 feet
Southwesterly of the following described line: Beginning at a point on the South line of Section 27,
Township 119, Range 21, distant 1607.8 feet West of the South Quarter corner thereof; thence run
Northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South Section line for 1000
feet and there terminating, Block 1, Sunset Manor.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1427277
Parcel 6:
Lot 2, except that part thereof which lies Northeasterly of a line run parallel with and distant 42 feet
Southwesterly of the following described line: Beginning at a point on the South line of Section 27,
Township 119 North, Range 21 West distant 1607.8 feet West of the South Quarter corner thereof;
thence run Northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South Section
Line for 800 feet and there terminating, Block 1, Sunset Manor.
Hennepin County, Minnesota.
Torrens Property
Torrens Certificate No. 810173
Parcel 7:
Lot 3, Block 1, Sunset Manor.
Hennepin County, Minnesota
Torrens Property
Torrens Certificate No. 1377906
Parcel 8:
That part of Lot 4, Block 1, Sunset Manor, which lies southwesterly of a line run parallel with and
distant 42 feet southwesterly of the following described line: Beginning at a point on the South line of
Section 27, Township 119 North, Range 21 West distant 1607.8 feet West of the South quarter corner
thereof; thence run northwesterly at an angle of 53 degrees 20 minutes 37.5 seconds with said South
Section line for 800 feet and there terminating.
Hennepin County, Minnesota
Torrens Property
Torrens Certificates No. 1486581