Loading...
HomeMy WebLinkAbout1998 06-08 EDAM Regular Session 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 JUNE 8, 1998 CITY HALL 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Myrna Kragness at 7:49 p.m. 2. ROLL CALL President Myrna Kragness, Commission members Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe. Also present: Executive Director Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, Director of Public Works Diane Spector, Planning and Zoning Specialist Ron Warren, Director of Community Development Brad Hoffman, City Attorney Charlie LeFevere, and City Clerk Sharon Knutson. 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commission member Carmody and seconded by Commission member Lasman to approve the agenda and consent agenda as printed passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commission member Carmody and seconded by Commission member Lasman to approve the minutes of the May 26, 1998, Regular Session as printed passed unanimously. 4. COMMISSION CONSIDERATION ITEM 4a. RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND BOULEVARD SHOPPES, LLC Executive Director McCauley explained this development has been pending since 1995. The proposal outlines the terms on which the City would participate in the development of the retail center. 6/8/98 -1- The financial commitment would be for up to $1.5 million. $900,000 would be pay as you go and $600,00 would potentially be written off by the EDA, depending on the cost of acquisition. The developer is responsible for the first $1.1 million in land costs prior to the use of tax increment or EDA write down of acquisition costs. Community Development Director Brad Hoffman outlined the location of the proposed development on the northeast corner of 69th Avenue and Brooklyn Boulevard, approximately 6.5 acres. The agreement would be between the EDA and Boulevard Shoppes LLC consisting of Dave Nelson, James Whitman, and Gary Wenger. The Comprehensive Plan recognizes the site as either office or retail development. The agreement also provides for assistance in the acquisition of any properties necessary to complete this project if the developer is unable to acquire the land. However, prior to the EDA conveying land, using eminent domain powers, or providing any financial assistance, the developer needs to provide proof of financing, deposit with the EDA monies sufficient enough to cover the estimated cost of acquisition, and have an approved site and building plan. Mr. Hoffman addressed the Hennepin County proposal to widen Brooklyn Boulevard in the year 2000. He explained the City would have an obligation to pay for 50% of the cost of right -of -way acquisition including relocation. The widening of Brooklyn Boulevard would require an easement of 30 feet on the east side, and the distance from 69th to 70th Avenue is approximately 600 feet. The acquisition of the easement, independent of any development, would also require the relocation of five current businesses and eight parcels of which the EDA currently owns three properties at a cost of $300,000. The entire site to be acquired would be approximately 89,300 square feet, with the easement representing 20% of the property to be acquired. Hennepin County will be participating in 50% of the cost of the easement property (50% of the relocation and 50% of the demolition) for a total contribution of $212,000. The City would have $908,500 tied up in the acquisition of right of -way with a remaining parcel worth approximately $285,200. The land remaining from the right- of -way acquisition would be too narrow to develop by itself. the additional cost of acquiring the minimum needed to develop this site would be approximately $812,000 of which the EDA has already purchased one property at a cost of $76,900. If the EDA approves the proposed development and if the widening of Brooklyn Boulevard takes place, the overall land write down would be reduced by the estimated $212,000 received by Hennepin County. Mr. Hoffman explained that a storm water retention pond is required with this proposed development. The developer would be specially assessed for their proportionate share. The pond could be located on the north side of 70th Avenue or could be created in conjunction with the future St. Alphonsus project, thus not creating several small ponds. Another issue which needs to be addressed is the backyard treatment/screening, and it is recommended that it be the same as along 69th Avenue. Mr. Hoffman indicated that neighbors in this location have been notified of this proposed development. Commission member Hilstrom raised the question of the required storm water retention pond and who pays if the pond is not built in conjunction with the St. Alphonsus project. 6/8/98 -2- Mr. Hoffman explained that the necessary size of the pond is based on the square footage served; therefore, if the pond is built only to accommodate the retail center, the developer would pay 100 Commission member Hilstrom raised the question of the total cost to the City. Mr. Hoffman explained that part of the development agreement is that the City acquires an easement and the maximum total cost is $1.5 million. If the County proceeds with the widening of Brooklyn Boulevard, the cost is reduced by $212,000. Commission member Hilstrom inquired if there is an agreement with Hennepin County regarding the redevelopment of Brooklyn Boulevard. Mr. McCauley responded there is a draft agreement and negotiations are proceeding. The City is negotiating to increase Hennepin County's participation in the costs. Commission member Hilstrom asked what the City's liability is to the homeowners if the EDA approves this development proposal and it doesn't go forward. City Attorney LeFevere explained that technically there is no liability. President Kragness raised the issue that the homeowners in this area have been placed in a hardship for some time now with the proposed development and not being sure if they are going to lose their homes or not. In some cases, the City's code enforcement has been through the area and homeowners have received orders to maintain their property. If there is a potential that the City may purchase their homes, what incentive is there to upgrade their properties. Commission member Hilstrom inquired what say the City has as far as the types of businesses which will be located in the retail center. Mr. McCauley explained what is limited in the zoning requirements would be allowed, and the City would have very little control if the type of business meets those requirements. Mr. Hoffman said that the contract agreement is subject to conditions, and the EDA could chose to include certain conditions regarding types of businesses located in the retail center. He further explained that this is a neighborhood retail center, and a service station/convenience store is the anchor for the developer's financing. If the City places a condition not to allow the service station, he believes the developer may not be able to obtain financing and may not proceed with the development. Commission member Hilstrom inquired if the residents in the neighborhood have been approached regarding acquisition. Mr. Hoffman indicated that the City has not contacted any of the residents, but the residents have contacted the City inquiring when the project would take place. Dave Nelson, developer, and Gary Wenger, architect, explained the project is a 50,000 square foot retail neighborhood center and displayed renderings of the center. He said the proposal does include a service station/convenience store, and it is the anchor for obtaining financing. Demographics indicate the area needs this type of redevelopment. 6/8/98 -3- There would be three separate buildings, possibly including a coffee shop, flower shop, bagel shop, pizza place, and a drug store. There would be no outside storage. He indicated he has met with some of the residents in the neighborhood regarding options. Commission member Hilstrom inquired if this proposal fits in with the Brooklyn Boulevard Study. Mr. Hoffinan indicated that this would be the first project to implement the study, especially in the landscaping area. Commission member Peppe raised the question of the back of the buildings and what would be the screening. Mr. Hoffman responded that the neighborhood would have input on the type of screening to be used, and at this point it is recommended to be similar to the fencing along 69th Avenue. President Kragness opened the meeting for public input. Darnell Ostrom spoke on behalf of her parents, the Gustafsons who reside at 6935 June Avenue North. She raised concerns regarding the time frame for implementation of the project, notification of the time frame and if the project is going forward, who is ultimately responsible, who would make the assessment of homes to determine value, and compensation for home improvements that have been made. Community Development Director Hoffman stated that the initial discussions would be between the developer and property owners. If the City were to be involved because the developer and owner could not reach an agreement, he explained the appraisal process, indicating the City pays for this appraisal. There are relocation costs which are also included in the acquisition. He reviewed the process for eminent domain. Ms. Hayes, owner of a beauty shop on Brooklyn Boulevard and 69th Avenue, stated her concerns with loss of business during the construction period. President Kragness referred Ms. Hayes to speak with Mr. Nelson regarding any potential for relocation in the retail center. Mr. Nelson said he plans to speak with the current tenants regarding relocating to the new retail center. Commission member Hilstrom raised the question of the time frame for this development. Mr. Nelson said the first step is to get a development contract. The plan requires acquisition of all the properties by the end of this year; construction would begin in the spring with completion by the end of 1999. Roger Gustafson, representing his parents who reside at 6935 June Avenue North, said his father is homebound and his mother is legally blind and they don't want to move, they enjoy their neighbors, they cannot afford another house, and the church is within walking distance. Mr. Hoffman explained that the relocation services take into consideration the needs of the residents and try to fit into the criteria used and find a comparable home. 6/8/98 -4- Julie Berg, 6944 June Avenue North, explained that she purchased her home with first -time homebuyer mortgage money, and she can never qualify for that same mortgage money again since it is for first -time homebuyers. She has spoken with Tom Bublitz regarding her concerns and the possible redevelopment. She requested clarification as to whom she should be negotiating with at this time. President Kragness referred Ms. Berg to speak with Mr. Nelson. Commission member Hilstrom said the property on the northeast corner of 69th Avenue and Brooklyn Boulevard is in dire need of redevelopment; however, she does not support subsidizing strip malls or gas stations with City funds. She raised a concern with approving the retail center and having no control over what types of businesses are located in the center. She stated she is not convinced that the City should fund this retail center. Commission member Carmody explained that this area has been a higher priority for redevelopment for the past three years. The property is unsafe and an eyesore, and it has been on hold too long and now there is the opportunity to proceed with a proposed development. RESOLUTION NO. 98 -10 Member Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND BOULEVARD SHOPPES, LLC The motion for the adoption of the foregoing resolution was duly seconded by member Peppe and upon vote taken, the following voted in favor: President Kragness, Commissioners Carmody, Lasman, and Peppe; Commissioner Hilstrom voted nay. The motion passed. 5. ADJOURNMENT A motion by Commission member Carmody and seconded by Commission member Lasman to adjourn the meeting at 8:50 p.m. passed unanimously. esident, Pro Tem Recorded and transcribed by: Sharon Knutson 6/8/98 -5-