HomeMy WebLinkAbout2009 06-08 EDAPEDA MEETING
City of Brooklyn Center
June 8, 2009
1. Call to Order
The EDA requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full City Council packet, including EDA (Economic Development Authority),
is available to the public. The packet ring binder is located at the front of the Council
Chambers by the Secretary.
2. Roll Call
3. Approval of Agenda and Consent Agenda
The following items are considered to be routine by the Economic Development
Authority (EDA) and will be enacted by one motion. There will be no separate
discussion of these items unless a Commissioner so requests, in which event the item will
be removed from the consent agenda and considered at the end of Commission
Consideration Items.
a. Approval of Minutes
1. May 26, 2009 Regular Session
4. Commission Consideration Items
a. Resolution Authorizing Execution of a First Amendment to Real Estate Option
Agreement (FBI Regional Field Office)
Requested Commission Action:
Motion to adopt resolution.
5. Adjournment
AGENDA
EDA Agenda Item No. 3a
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Tim Willson at 8:03 p.m.
2. ROLL CALL
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
MAY 26, 2009
CITY HALL COUNCIL CHAMBERS
President Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark
Yelich. Also present were Executive Director Curt Boganey, Public Works Director /City
Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Police Chief Scott
Bechthold, Fire Chief Lee Gatlin, City Attorney Sarah Sonsalla, and Deputy City Clerk Maria
Rosenbaum.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Lasman moved and Commissioner Roche seconded approval of the Agenda and
Consent Agenda, and the following item was approved:
1. May 11, 2009 Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION AUTHORIZING THE ACQUISITION OF 5601 LOGAN AVENUE
NORTH IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM
Director of Business and Development Gary Eitel introduced the item, discussed the history, and
stated the purpose of the proposed resolution.
Commissioner Lasman moved and Commissioner Ryan seconded adoption of EDA
RESOLUTION NO. 2009 -09 Authorizing the Acquisition of 5601 Logan Avenue North in
Connection with the Remove and Rebuild Program. Motion passed unanimously.
05/26/09
3a. APPROVAL OF MINUTES
-1- DRAFT
5. ADJOURNMENT
Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic
Development Authority meeting at 8:07 p.m. Motion passed unanimously.
05/26/09
-2- DRAFT
ED Agenda Item No. 4a
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DATE: June 2, 2009
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business and Development
SUBJECT: Resolution Authorizing the Execution of a First Amendment to Real Estate Option
Agreement (FBI Regional Field Office)
COUNCIL ACTION REQUESTED:
Motion to adopt Resolution Authorizing the Execution of a First Amendment to Real Estate Option
Agreement.
BACKGROUND:
Real Estate Option Agreement:
EDA COUNCIL ITEM MEMORANDUM
On February 25, 2008, the EDA moved to adopt Resolution No. 2008 -02, which authorized the
execution of an assignable option purchase agreement with the General Service Administration
(GSA) for a parcel of land not to exceed 8.57 acres in area that included the following properties:
Tract A, RLS No. 1477 (the former Days Inn Site) and the northern portion of Lot 2, Block 1
Richardson Park 2nd Addition the former Cracker Barrel Site)
The option agreement was executed on March 19, 2008 and included an effective period of 15
months (expiration date June 17, 2009).
On April 30, 2009, the GSA publicly announced that Barry Real Estate Company had been
selected to be the developer for the design, build, and leasing of the FBI Regional Field Office.
On May 20, 2009 a pre application meeting with the developer's architect, engineer, and general
contractor identified site construction (footings and foundation work) to commence in October,
2009 with a project completion date schedule for the of Spring, 2011.
The First Amendment to the Real Estate Option Agreement provides for the extension of the
Term of Option to September 17, 2009 and it recognizes that the GSA has assigned its right and
interest in the option agreement to Barry Minneapolis, LLC.
During the next 3 months the developer will complete their design and site layout for the City's
review and approval process, the replat of the EDA properties, the relocation of a water trunk
line, and other agency reviews will be completed which will facilitate the EDA's conveyance of
0 a platted lot to Barry Minneapolis, LLC. and execution of the development agreement for the
construction of the FBI Regional Field Office at this site.
Budget Issues:
There are no budget issues with this action.
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT
TO REAL ESTATE OPTION AGREEMENT
WHEREAS, the Economic Development Authority in and for the City of
Brooklyn Center, Minnesota (the "EDA and the United States of America, acting by and
through the U.S. General Services Administration (the "GSA have heretofore entered into a
Real Estate Option Agreement (the "Option Agreement providing for the EDA's conveyance
of certain real property to GSA for the purpose of constructing office space containing
approximately 162,000 square feet of rentable space with a future onsite parking facility
structure having a minimum of 200 spaces (the "Project within the City of Brooklyn Center,
Minnesota (the "City and
WHEREAS, the GSA has assigned its right and interest in the Option Agreement
to Barry Minneapolis, LLC (the "Developer and
WHEREAS, the EDA and the Developer desire to amend the Option Agreement
pursuant to a First Amendment to Real Estate Option Agreement (the "Amendment to extend
the term of the option granted in the Option Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center, Minnesota, as follows:
1. The EDA hereby approves the Amendment in substantially the form submitted, and
the President is hereby authorized and directed to execute the Amendment on behalf
of the EDA.
2. The approval hereby given to the Amendment 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 the EDA authorized by this resolution to execute the Amendment. The
execution of the Amendment by the appropriate officer or officers of the EDA shall
be conclusive evidence of the approval of the Amendment in accordance with the
terms hereof.
Date President
The motion for adoption of the foregoing resolution was duly seconded by commissioner
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against same:
whereupon said resolution was declared passed and adopted.
FIRST AMENDMENT
TO REAL ESTATE OPTION AGREEMENT
This First Amendment to Real Estate Option Agreement (the "First Amendment is
made and entered into the day of 2009, by and between the ECONOMIC
DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, a public body corporate and
politic organized and existing under the laws of the State of Minnesota "Optionor whose
address is 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, and BARRY
MINNEAPOLIS, LLC, a Georgia limited liability company "Optionee whose address is c/o
Barry Real Estate Companies, Inc., 30 Ivan Allen Jr. Boulevard, Suite 900, Atlanta, Georgia
30308 "Optionee
WHEREAS, Optionor and the United States of America, acting by and through the U.S.
General Services Administration "GSA entered into that certain Real Estate Option
Agreement dated March 19, 2008 (the "Option Agreement for the purchase and sale of certain
real property being formerly known as the Days Inn Site and the Cracker Barrel site (the
"Property
WHEREAS, the GSA assigned all of its rights and obligations under the Option
Agreement to Optionee, as the Developer of the Property, and Optionee agreed to assume and
perform all of the GSA's rights and obligations under the Option Agreement;
WHEREAS, Optionee desires and Optionor agrees to extend the Expiration Date of the
Option term for ninety (90) days;
WHEREAS, Optionor and Optionee hereby agree to amend Section 2 of the Option
Agreement for the purpose of modifying the term of the option and to amend certain other
provisions of the Option Agreement;
NOW THEREFORE, in consideration of the mutual covenants contained herein, and
other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the Option Agreement is hereby amended and the parties hereto do hereby agree
as follows:
1. Term of Option. The first sentence of Section 2 of the Option Agreement shall be
deleted in its entirety and the following substituted in lieu thereof:
"2. Term of Option. Optionee may exercise the Option at any time
between March 19, 2008, and September 17, 2009 (the "Expiration Date
2. Notices to Optionee. From and after the date hereof, Section 19 shall be amended
to provide that all notices to Optionee shall be addressed as follows: Barry Minneapolis, LLC,
c/o Barry Real Estate Companies, Inc., 30 Ivan Allen Jr. Boulevard, Suite 900, Atlanta, Georgia
30308, Attention: M. Lance Patterson.
1
3. Miscellaneous. The recitals referenced hereinabove are incorporated into the
body of this First Amendment. All capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to them in the Option Agreement. The headings used
herein are provided for convenience only and are not to be considered in construing this First
Amendment. This First Amendment shall not be valid and binding on Optionor and Optionee
unless and until it has been completely executed by, and delivered to, both parties. The parties
may exchange an executed document by electronically mailed transmission, which shall have the
same force and effect as an original.
EXCEPT AS expressly amended and modified hereby, the Option Agreement shall
otherwise remain in full force and effect, the parties hereto hereby ratifying and confirming the
same. To the extent of any inconsistency between the Option Agreement and this First
Amendment, the terms of this First Amendment shall control.
IN WITNESS WHEREOF, the undersigned parties have duly executed this First
Amendment under seal as of the day and year first above written.
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OPTIONOR:
Economic Development Authority of
Brooklyn Center, a public body corporate
and politic organized under the laws of
the State of Minnesota
By:
OPTIONEE:
Barry Minneapolis, LLC, a Georgia limited
liability company
By:
Name:
Title:
M. Lance Patterson
Manager