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HomeMy WebLinkAbout1984 10-04 EBFAMEMORANDUM TO: Earle Brown Farm Committee FROM: Brad Hoffman, Administrative Assistant DATE: October 1, 1984 SUBJECT: Earle Brown Farm The Earle Brown Farm Committee will be faced with a number of issues concerning the future of the - Farm. You will be making recommendations as to the future use of the buildings, the ownership of the buildings, the relationship between the City and the owner, if not one in the same, and to the appropriateness of restoration versus replication of some of the buildings. There will be many other decisions required of the Committee also. The principle tool available to the City or HRA for funding this project is tax increment financing. There is also the possibility of using Community Development Block Grant (CDBG) monies, dependent upon the nature of the develop- ment, to assist in the acquisition of the Farm. Lastly, there are tax exempt bonds for a multi-family (apartments) development. The tax increment district, dependent upon the type of district established, can have a life of eight (8) to twenty-five (25) years. Currently, the Farm in its entirety pays $75,668.00 in property taxes anhually. Also, there is $62,244.80 in outstanding special assessments. A rough estimate would suggest that the district could pay off about $2,000,000 in bonds, assuming the develop- ment included four hundred (400) apartment units. Federal monies (CDBG) in the amount of $519,000 are being set aside for the acquisition. Working with federal monies is often'time consuming, complicated, and costly. We, the staff, are interested in pursuing the use of such monies if Brooklyn Center could retain local control of the development. In essence, the development of the Farm, its use, and how it is to be restored should be the decision of the locality and not that of the federal government. The use of federal funds is dependent upon the use of the buildings. An initial proposal for a senion citizen center is a possibility. . The Farm is divided into two (2) parcels. There are approximately fifteen (15) acres in the combined parcels. The buildings are in various stages of ' repair with some needing only limited work and others in need of extensive renovation. The barn and hippodrome together have an estimated 20,000 square feet. The house is also good sized. It is currently zoned industrial and any development outside of that zoning would require a rezoning and a change in the City's Comprehensive Plan. The question of ownership stems from a need to provide for the long term 1 maintenance of the buildings once they have been restored. Public ownership in most cases would be exempt from property taxes and thus would reduce the tax increment. However, it would also give the community the control necessary to assure their preservation. The cost of that would have to be guaranteed through the tax levy. In other words, it would be a cost to the City. If the property is privately owned, the buildings would generate property tax. Control or preservation of the buildings would be accomplished contractually and/or through long term leases. The concept (development) that has been given the most serious consideration by the staff to date is the senior center/housing development. It is currently the only proposal before the City. It provides a strong economic base for financing the development. Senior centers are in vogue and some years down the road the use as a senior center may be totally unacceptable. There is also a tendency to develop new programs in need of funding. Often such programs look first to the City to support that activity. Before recommending any development or program, serious consideration needs to be given to its funding source and future funding sources. Also, there may be too much space for a senior citizen center. Other developments that are possible include: a farmers market, day care facilities, commercial development, light industrial development and so forth. Thursday, (October 4th) I would like to hear your ideas for the development of the Farm so that we can start defining what the project is. Also, we will be discussing a tentative schedule. (D. ck ~(q C414) cIAj 2 U6~ Li~ a i'