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Home My WebLink About2009 02-09 EDAP EDA MEETING City of Brooklyn Center February 9, 2009 AGENDA 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 o 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. January 12, 2009 Regular Session 4. Commission Consideration Items a. Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5301 James Avenue North) Requested Commission Action: Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a 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 JANUARY 12, 2009 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 9:07 p.m. 2. ROLL CALL I President Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were Executive Director Curt Boganey, Community Development Director Gary Eitel, Public Works Director /City Engineer Steve Lillehaug, Assistant to the City Manager Vickie Schleuning, City Attorney Charlie LeFevere, and Carol Hamer, Timesaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Ryan seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES I December 8, 2008 Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2009 -01 ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. EDA officers included in Resolution No. 2009 -01 are: President/Treasurer Tim Willson Vice-President Kay Lasman Assistant Treasurer Daniel Jordet Secretary Gary Eitel 01/12/09 -1- DRAFT Commissioner Ryan moved and Commissioner Yelich seconded adoption of RESOLUTION NO. 2009 -01 Electing Officers for the Economic Development Authority in and for the City of Brooklyn Center. Motion passed unanimously. 4b. RESOLUTION NO. 2009 -02 ESTABLISHING HOUSING PROGRAMS AND APPROVING THE USE OF FUNDS FROM THE TAX INCREMENT DISTRICT NO.3 HOUSING ACCOUNT Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. Mr. Eitel provided a PowerPoint presentation and answered questions of the EDA on the Housing Initiatives Foreclosure Strategy. The presentation and discussion included the following information: Background; Brooklyn Center Housing Statistics; Housing Program Overview; Housing Program Objectives; Meeting Program Objectives; Summary of Resolution; and Next Steps. There was discussion on how the proposed housing programs relate to the Council goal of promoting home ownership versus allowing market forces to correct foreclosures. Mr. Jeff Anderson of Summit Mortgage answered questions of the Council on the requirements of the ReNew Loan. It was noted that the program consists of Class A and prime loans only, which include higher qualifying requirements than subprime loans. There was discussion on marketing the value of the homes available for purchase in the City of Brooklyn Center: Commissioner Lasman moved and Commissioner Roche seconded adoption of RESOLUTION NO. 2009 -02 Establishing Housing Programs and Approving the Use of Funds from the Tax Increment District No. 3 Housing Account. Mr. Anderson answered questions of the EDA on debt to income ratio requirements and loan origination fees. Motion passed unanimously. 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 9:57 p.m. Motion passed unanimously. 01/12/09 -2- DRAFT EDA Agenda Item No. 4a i EDA COUNCIL ITEM MEMORANDUM DATE: February 4, 2009 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development SUBJECT: Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5301 James Avenue North) COUNCIL ACTION REQUESTED: Motion to adopt the Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5301 James Avenue North). BACKGROUND: On January 12, 2009, the EDA adopted Resolution No. 2009 -02 "A Resolution Establishing Housing Programs and Annrovina the Use of Funds from Tax Increment District No. 3 HousinLy Account" which authorized the Remove and Rebuild Program: REMOVE AND REBUILD PROGRAM: The program was created to remove blighted, distressed, and unmarketable properties and return the properties to an enhanced, compatible use with the neighborhood, and consistent with zoning regulations and the City's Comprehensive Plan. Additionally, the program recognized that if an appropriate use for the land is not h roe will be land banked until such time an appropriate imminent e property rty pp riate use becomes p available. Proposed Acquisition: The Hennepin County Tax Records identifies the property owner of 5301 James Avenue North as Wells Fargo Bank N. A. Trustee and GMAC as the taxpayer. The 2008 property tax value is shown at $141,000. A review of the City records shows the following sales data: 2004 $150,000 1997 29,150 1992 54,200 1989 48,000 The property has 118' of frontage on 53rd Ave. and 51' of frontage on James Ave. N. with the building records indicating that a permit was issued for the original structure in 1938 and a garage addition in 1940. The property is a vacant and foreclosed building that is currently being advertised for sale at $19,900. The costs associated with demolition and fees per the consultant service agreement with the Greater Metropolitan Housing Corporation is estimated at approximately $20,000. A special assessment search indicates levied assessment in the amount of $484.17 for-----. delinquent utilities. The following options for the future use of the property have been identified: 1. Communitv Trail Corridor The 2000 Comprehensive Plan identified a major trail corridor along 53rd Avenue from the Mississippi River Trail to Humboldt Avenue. The current 2010 Comprehensive Plan is considering the westerly extension of this proposed trail corridor to the Shingle Creek Corridor to the west of Humboldt Avenue. 2. Infill Development When market conditions are favorable, the redevelopment of this lot with a single family residence with proper orientations to James Avenue and the service alley that is consistent with the neighboring properties. 3. Land Combination to the Adiacent Property The option of completing the trail corridor and other streetscape improvements and conveying the residue of the property to the adjoining land use to the north. 4. Redevelopment Pro iect A major redevelopment of the 53rd Avenue corridor comparable to the Humboldt Greenway. In the event the EDA decides not to pursue the purchase of this property, it is the opinion of staff that the property will likely be purchased by an investor that will undertake the minimum improvements and attempt to rent the property with the intention of a future resale when the market conditions change to a seller's market. It is our belief that the condition of this property cannot be improved to a position where it would reach a comparable value of homes within this residential area. BUDGET ISSUES: The acquisition and demolition costs for this property will be funded by the Housing Account from Tax Increment District No. 3. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM J5301 JAMES AVENUE NORTH} WHEREAS, on January 12, 2009, the Economic Development Authority in and for the City of Brooklyn Center, Minnesota (the "EDA adopted Resolution No. 2009 -02 establishing housing programs and approving the use of funds from the Tax Increment District No. 3 housing account; and WHEREAS, one of the housing programs so established was the EDA's Remove and Rebuild Program (the "Program to acquire demolished, blighted, distressed, and unmarketable properties to be returned to uses compatible with the neighborhood; and WHEREAS, real property located at 5301 James Avenue North (the "Subject Property is for sale; and WHEREAS, City staff and consultants have negotiated a purchase agreement for the purchase by the EDA of the Subject Property; and WHEREAS, the EDA has determined that acquisition of the Subject Property on the terms and conditions set forth in the proposed purchase agreement is consistent with the goals and objectives of the Program and is in the best interests of the City of Brooklyn Center and its citizens. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota as follows: 1. The purchase agreement for the Subject Property is hereby approved. 2. The President and Secretary of the EDA are authorized and directed to execute the purchase agreement, and the Executive Director is authorized and directed to take all such further steps as are necessary to effect the terms thereof. Date President 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 sam e: whereupon said resolution was declared duly passed and adopted. p p f s s fi e •,fix:: �S' �9 k a Ro 3 ar �"z a w e Pa ry 0 �V ps;, d z ""'Ups F Hennepin County Property Map Print Page 1 of 1 Hennepin County Property Map Tax Year: 2008 The data contained on this page is derived from a compilation of records and maps and may contain discrepancies that can only be disclosed by an accurate survey performed by licensed land surveyor. The perimeter and area (square footage and acres) are approximates and may contain discrepancies. The information on this page should be used for reference purposes only. E Hennepin County does not guarantee the accuracy of material herein contained and is not responsible for any misuse or misrepresentation of this information or its derivatives. 5315 3x5 5320 i 531fl ��it9 i Fi 2: I w 55306 53495 a t 5300 53 Oil 5301 €i 53RD AVE 5254 5255 5254 5 �5D 52:51 _......,5250 11111111111110 1111111110 Selected Parcel Data Date Printed: 2/4/2009 2.00:18 PM Parcel ID: 02- 118 -21 -44 -0054 Current Parcel Date: 1/5/2009 Owner Name: WELLS FARGO BANK N A TRUSTEE Parcel Address: 5301 JAMES AVE N, BROOKLYN CENTER, MN 55430 Property Type: RESIDENTIAL Sale Price: $150,000.00 Homestead: HOMESTEAD Sale Date: 01/2004 Area (sgft): 6256 Sale Code: WARRANTY DEED Area (acres): 0.14 A -T -B: TORRENS Market Total: $156,400.00 Tax Total: $2,237.16 /";L- t,P„np.rlin mn c/ HC ''PronertvMan/Locator.asDx ?PID= 0211821440054 2/4/2009 r j f I yy) v f .y' t 6 Iry