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HomeMy WebLinkAbout1992 01-13 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 JANUARY 13, 1992 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 11:32 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were City Manager Gerald Splinter, Assistant EDA Coordinator Tom Bublitz, City Attorney Charlie LeFevere, Director of Public Works Sy Knapp, Director of Planning and Inspection Ron Warren, Finance Director Paul Holmlund, and Council Secretary Carla Wirth. APPROVAL OF MINUTES DECEMBER 16, 1991 EDA SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Pedlar approving the minutes of the December 16, 1991, EDA Special Session as submitted. The motion passed unanimously. President Paulson excused himself from the meeting at 11:33 p.m. and indicated that he would abstain from discussion regarding the sale of EDA property at 6730 Perry Avenue North. President Paulson placed President Pro tem Pedlar in charge of the meeting and left the Council Chambers. PUBLIC HEARING The City Manager indicated staff recently had discussions with representatives of Thermasave Building Products, Inc., to purchase the EDA owned single family lot located at 6730 Perry Avenue North and construct a new, single family home on the property. The project was undertaken under the Slum and Blight Clearance provisions of the Community Development Block Grant (CDBG). The EDA purchased this home and relocated the owner to another home in Brooklyn Center. Staff received several inquiries on the ads placed to sell this property, but no offers were received. 1/13/92 1 The Assistant EDA Coordinator reported that staff had been talking with Thermasave Building Products, Inc. who uses an innovative structural insulated panel building system to construct homes. He recommended the sale of this lot for $12,000, a $7,500 reduction from the fair market value of the lot which was established at $19,500. The EDA must pay $19,500 to the CDBG program; however, the EDA would only owe the actual purchase price of $12,000 if the new house was sold to a low and moderate income person. The EDA must also enter into an agreement with Hennepin County to assure that the house would be sold to a low and moderate income person within one year from the date of closing. In response to Commissioner Cohen's question, the Assistant EDA Coordinator responded that the average value of homes in the neighborhood were in the low to mid $50,000. The house being proposed by Thermasave, with the lot, would be approximately $75,000. Commissioner Cohen pointed out that the new house would have a higher value even with the write -down. The City Manager noted the change in roof design to include a pitched roof. Chuck Stevens, Thermasave Building Products, Inc., provided a brief report on their company, construction materials and insulation value. They use pre manufactured panels for basement construction which carry a ten year warranty. In responding to questions posed by Commissioner Rosene, Mr. Stevens explained this would be their first house in Minnesota. Once footings were installed, it would take their non -union crew (of three to four people) three or four days to erect the house plus another ten days to finish the interior (which was usually sheetrocked and taped). Mr. Stevens reported that the panels do not give off any harmful gasses or toxic vapors. He explained that they use windows with breathers since the panels were air tight. Thermasave has been in business since 1980, but has just incorporated in Minnesota this year (as a licensed franchise). They currently have homes in Alaska, Washington, Japan, Panama, Kuwait and Texas. The square footage for the upstairs of the proposed house was 1,296 plus a full basement. Commissioner Rosene asked what type of homeowners guarantee was provided by Thermasave. Mr. Stevens explained they do not currently provide one, but would be willing to consider a guarantee program similar to Home Owners Warranty (HOW) which was the standard in the industry. The Assistant EDA Coordinator pointed out that the EDA would be only selling the lot below value and requiring that the final product be sold to a low and moderate income person. The proposed product meets Building Code standards as well as those set by FHA and VA for financing. It was not proposed that the EDA become "partners" with Thermasave but rather to make it possible for them to purchase the property. Commissioner Rosene expressed an interest in watching the construction of this house. Mr. Stevens indicated he would keep the City informed of the building schedule. They would be videotaping the building process and plan to have an open house once it was completed. 1/13/92 2 1 1 1 1 With regard to certification, the Director of Planning and Inspection indicated the proposed building materials meet certification of the Building Code. President Pro tem Pedlar opened the meeting for the public hearing regarding the sale of land at 6730 Perry Avenue North by the Economic Development Authority for the City of Brooklyn Center at 11:53 p.m. He inquired if there was anyone present who wished to address the Authority. No one appeared to speak and he entertained a motion to close the public hearing. There was a motion by Commissioner Scott and seconded by Commissioner Rosene closing the public hearing at 11:53 p.m. The motion passed unanimously. RESOLUTIONS RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT AND CONTRACT FOR DEED FOR THE SALE OF THE EDA OWNED PROPERTY AT 6730 PERRY AVENUE NORTH IN BROOKLYN CENTER The City Manager presented a Resolution Authorizing Execution of Purchase Agreement and Contract for Deed for the Sale of the EDA Owned Property at 6730 Perry Avenue North in Brooklyn Center. Consensus was reached that the date of closing would be set for January 21, 1992, and that Thermasave Building Products, Inc. would be required to provide a guarantee program similar to HOW. RESOLUTION NO. 92 -01 Commissioner Cohen introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT AND CONTRACT FOR DEED FOR THE SALE OF THE EDA OWNED PROPERTY AT 6730 PERRY AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene. The motion passed unanimously. President Paulson returned at 11:55 p.m. and chaired the remainder of the meeting. The EDA agreed to consider Item 5b at this time since Mr. Schatzlein was present for discussion. 1/13/92 3 DISCUSSION ITEM: 1/13/92 4 UPDATE ON SINGLE FAMILY HOMEOWNERS ASSOCIATION AND REMODELING/REDESIGN PROGRAM The Assistant EDA Coordinator explained that staff had met with Bill Schatzlein to discuss a concept for two housing related programs to be pursued by his nonprofit housing corporation. One of the projects proposed was a Home Redesign and Remodeling Program, the intent of which was to develop several prototype designs for remodeling and redesign of three to four home types typically found in Brooklyn Center. This type of project was recommended by the City's Housing Implementation Plan and would provide some practical, realistic remodeling guidelines for people in older homes who may be interested in remodeling but have no idea where to begin. It was noted that Mr. Schatzlein was also working with the City of Richfield on a similar home redesign demonstration program and would be holding a remodeling fair which was sponsored by the Marketing Committee of the Richfield Visions 2005 Committee. Mr. Schatzlein provided a description of his nonprofit housing corporation and explained that it could be offered as part of the adult education program. They attempt to make remodeling more "user friendly" by offering ideas and providing photographs of other homes in the community that have already been remodeled. Suggestions on working with a contractor and architect were also offered along with an indication of what City permits and approvals were required. The City Manager indicated he felt this type of program would fit in well in Brooklyn Center. He suggested a housing fair be considered in conjunction with events already scheduled at the Heritage Center. The Assistant EDA Coordinator commented that he does not feel this program would be operated completely from foundation funding, and that the Council may want to address whether it would be appropriate to look at local resources to provide a portion of the needed funding. He suggested the EDA authorize Mr. Schatzlein to seek funding from local banks for the two demonstration programs and to enlist the assistance of the appropriate elected officials and staff members in this effort. There was a motion by Commissioner Scott and seconded by Commissioner Rosene to authorize Mr. Schatzlein to seek funding from local banks for two demonstration programs and direct staff to provide assistance as needed. The motion passed unanimously. MEETING TO CONSIDER THE PROMOTION OF THE EARLE BROWN HERITAGE CENTER ON JANUARY 20, 1992 The EDA Coordinator reported that he was scheduling a strategy /planning session at the Inn to discuss and generate ideas for promoting the facility. He invited the Council to send several members to be part of this discussion. 1 1 1 1 Commissioner Pedlar stated he felt this meeting would provide an opportunity for the Council to provide input on their ideas on future direction, advertisement funding, etc. Commissioner Cohen expressed concern if only several Council members attend the meeting and express their views, which may not be the views of the entire Council. He suggested the entire EDA become involved so a consensus of the group would be known. The EDA Coordinator explained that he does not plan to request formal action on any issue. The purpose of the meeting was to gather input. He hopes to keep the gathering fairly small to encourage more participation. Commissioner Cohen stated he was still concerned with one individual offering thoughts that have not been discussed as a whole. Consensus was reached that President Paulson and Commissioner Rosene would attend the January 20, 1992 meeting to consider the promotion of the Earle Brown Heritage Center. RESOLUTIONS RESOLUTION NO. 92 -02 Commissioner Pedlar introduced the following resolution and moved its adoption: RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO. H97 8023) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott. The motion passed unanimously. RESOLUTION NO. 92 -03 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Pedlar. The motion passed unanimously. RESOLUTION NO. 92 -04 Commissioner Pedlar introduced the following resolution and moved its adoption: RESOLUTION FOR FACSIMILE SIGNATURES The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott. The motion passed unanimously. 1/13/92 5 ADJOURNMENT There was a motion by Commissioner Pedlar and seconded by Commissioner Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 12:18 a.m. Recorded and transcribed by: Carla Wirth Northern Counties Secretarial Services 1/13/92 Todd Paulson, President 1