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HomeMy WebLinkAbout1989 03-27 EDAM Special Session1 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 SPECIAL SESSION MARCH 27, 1989 CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 7 :14 p.m. ROLL CALL President Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Todd Paulson, and Jerry Pedlar. Also present were EDA Director Gerald Splinter, Director of Public Works Sy Knapp, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney Charlie LeFevere, EDA Coordinator Brad Hoffman, and Administrative Aide Patti Page. APPROVAL OF MINUTES MARCH 13 1989 SPECIAL SESSION There was a motion by Commissioner Lhotka and seconded by Commissioner Scott to approve the minutes of the March 13, 1989, Economic Development Authority meeting. The motion passed unanimously. DISCUSSION ITEMS SALE OF LOT AT 5345 COLFAX AVENUE NORTH The EDA Coordinator stated the EDA has concluded the acquisition and demolition of the home at 5345 Colfax Avenue North. He noted at the present time the EDA has approximately $23,000 into this project. He stated he would like to discuss different options for selling the lot. He noted in the past the EDA has indicated an interest in having some control over the structure to be built on this lot. He stated he believes this can be accomplished in one of two ways. He noted first the lot could be sold with a minimum of value on the building to be constructed or minimum square footage. He noted he felt the square footage approach would be perhaps the best. He stated a second approach would be to require interested parties to submit proposed plans with its offer. He noted this would allow the EDA to see exactly what is being built. He stated staff's concern with this approach is that the EDA could be accused of being arbitrary. He noted it is staff's recommendation the Council take offers on this property and place minimum square footage requirements on the construction. Commissioner Lhotka stated he would like to make sure that a good, well built home, that is possibly maintenance free, be put on this lot. The EDA Coordinator stated by putting the criteria for maintenance free exteriors on this lot, the offering price may be lowered. The EDA Coordinator noted this is also a discussion item with the Housing Commission, and they have asked staff to draft guidelines for the sale of this lot. The EDA Director stated he would like the EDA to authorize staff to take offers on this lot, and staff will prepare a document and send it out for the EDA's review. 3/27/89 -1- There was a motion by Commissioner Lhotka and seconded by Commissioner Paulson authorizing staff to accept offers on the lot at 5345 Colfax Avenue North. The motion passed unanimously. DEVELOPMENT OF R7 PROPERTY SOUTH OF THE LIBRARY The EDA Director stated the property immediately south of the Hennepin County library is one of the sites in Brooklyn Center previously acknowledged by the Council as a development site that would probably need assistance because of the significant soil problems. He noted he has been approached by the LaNel Financial Group, Inc. for assistance with the development of this site. He noted he has had discussions with other developers, but no one has ever shown an extensive interest in this site. He added he believes LaNel Financial Group, Inc. has shown a sincere interest in the development of this site. He noted LaNel Financial Group, Inc. is financially capable of handling this project. He went on to briefly review its proposal for the site. The EDA Coordinator stated there are some downsides to this project and noted the EDA has an agreement with Beisner for phase II of Earle Brown Commons. He noted this second building can be either senior or straight market rate units. He stated staff and the EDA should be concerned with bringing two similar projects online at the same time. He noted LaNel Financial Group, Inc. does not believe its development is in the same market as the Beisner development. He stated a question before the EDA this evening is, should the EDA develop this site or wait. President Nyquist inquired if the Housing Commission has discussed this proposal at all. The EDA Coordinator responded negatively. Commissioner Lhotka stated it would be possible to discuss this project with the Housing Commission. He inquired if the Earle Brown Commons developer felt they would be in competition with LaNel Financial Group, Inc. The EDA Coordinator stated there is a level of concern regarding this type of development so close to their own. Commissioner Scott stated she is concerned that the City get a decent development on this site which will be an asset to the City. Commissioner Pedlar stated he is concerned with the developer's present status where it pertains to rental property. He noted its track record this far is not desirable. There was a motion by Commissioner Scott and seconded by Commissioner Paulson to refer this proposal to the Housing Commission. The motion passed unanimously. Comissioner Pedlar stated he would like to see a report from the Planning and Inspection Department and the Fire Department as to what the developer's current status is with rental properties. ADJOURNMENT There was a motion by Commissioner Lhotka and seconded by Commissioner Pedlar to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 7:50 p.m. 3/27/89 -2-