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Home My WebLink About1999 01-11 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 JANUARY 11, 1999 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 8:50 p.m. 2. ROLL CALL President Myrna Kragness, Commission Members Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert Peppe. Also present: Executive Director Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, City Attorney Charlie LeFevere, and Recording Secretary Maria Rosenbaum. 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Lasman, seconded by Commissioner Hilstrom to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Lasman, seconded by Commissioner Hilstrom to approve the minutes from the regular session on December 14, 1993. Motion passed unanimously. 3b. RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS RESOLUTION NO. 99 -01 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS Te motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hilstrom. Motion passed unanimously. V 11 11/99 _1_ 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER RESOLUTION NO. 99 -02 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hilstrom. Motion passed unanimously. 4b. RESOLUTION DIRECTING NOTICE OF TERtiIINATION PURSUANT TO ARTICLE M OF THE CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BE nVEEN THE ECONOMIC DEVELOPMENT AUTHORITY EX AND FOR THE CITY OF BROOKLYN CENTER, MINNESOTA, AND BOULEVARD SHOPPES, LLC Executive Director Michael McCauley outlined the current status of the redevelopment agreement between Boulevard Shoppes, LLC and the Economic Development Authority (EDA). The contract between the EDA and Boulevard Shoppes LLC required the redeveloper to provide proof of control of all of the property in the proposed redevelopment area by December 31, 1998. As of the date of the memorandum of January 6, 1999, the redeveloper had not demonstrated control of all of the property. Mr. Nelson did visit with staff today and presented some financing ma.erials, but not control of the property. Mr. McCauley indicated that he advised Mr. Nelson that he could make his presentation to the EDA with the redeveloper's request for an extension. Regardless of what direction the EDA chose to take with respect to the redeveloper's request for an extension of the agreement, the City Manager was recommending that the EDA consider a.plan at its January 25, 1999, meeting for the EDA to voluntarily acquire the owner- occupied residences in the redevelopment project area. Staff had previously not interjected itself into the acquisition of the property during the term of the redevelopment agreement with Boulevard Shoppes, LLC so as to not interfere with the contractual arrangement. Mr. Nelson addressed the EDA requesting a 60 -day extension of the agreement to March 16, 1999. I'vIr, Nelson stated that he had been working an this project and that putting it together was difficult. He further stated that he has shown good faith by obtaining purchase agreements on a number of properties and that he had actually purchased one of the homes. Mr. Nelson distributed to the EDA a site map showing the properties that he had acquired or had purchase agreements with and how they laid out on his proposed project area. y 1/11/99 -2- The EDA discussed its options with respect to this project. President Kragness indicated that she understood LIr. Nelson's statements regarding, the efforts that he had undertaken and the progress that he had made. Mr. McCauley outlined three general options for the EDA: Notice of termination Indicate that it would favor negotiations with Mr. Nelson on a 60 -day extension to March 15, 1999 Continue the discussion to the January 25, 1999, meeting for a specific written proposal regarding these matters Commissioner Hilstrom inquired if it would be possible to go forward with discussions with the residents while negotiations for a written extension of the agreement went forward and how would that impact the ten -day notice. That is, Commissioner Hilstrom was concerned that if an agreement was not reached at the January 25, 1999, meeting it would postpone by an additional ten days the effective termination, putting termination well into February. Mr. McCauley inquired of City Attorney Charlie LeFevere as to whether the EDA could delegate to the Executive Director authority to negotiate an extension on the terms that had been outlined, including Mr. Nelson's offer that the EDA could go forward with acquisition discussions without breeching the agreement with the redeveloper and if those negotiations were unsuccessful to give the ten -day notice. Mr. LeFevere suggested that the EDA could direct that the ten -day notice be given in a fashion that would not make it effective until January 26, 1999. Under this arrangement, if a satisfactory proposal was presented to the EDA, it could rescind its termination at the January 25, 1999, meeting before it became effective on January 26, 1999. Mr. McCauley suggested to the EDA that Mr. LeFevere's proposal was a better solution. A motion by Commissioner Lasman, seconded by Commissioner Nelson that staff negotiate with the redeveloper for an extension to the contract that would provide that the redeveloper would waive its rights «:-h respect to the EDA acquiring residential properties and that the redeveloper agree to assign any purchased contracts and agreements to the EDA if he did not complete his performance by March 15, 1999, and that the redeveloper be given until March 15, 1999, to fully perform under the agreement and that the Executive Director be directed to give the redeveloper notice of termination such that the notice would be effective January 26, 1999, if not rescinded by the EDA. Motion passed unanimously. 4c. RESOLUTION APPROVING THE ACQUISITION OF REAL PROPERTY LOCATED AT 6918 JUNE AVENUE NORTH, AND APPROVING PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT "vir. McCauley discussed the resolution approving the acquisition of real property located at 6918 June Avenue North, and approving purchase agreement between the EDA and the Department of Housing and Urban Development. 1/111'99 RFSOI_UTION NO. 99 -03 Commissioner Hilstrom introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE ACQUISITION OF REAL PROPERTY LOCATED AT 6918 JUNE AVENUE NORTH, AND APPROVING PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Motion passed unanimously. 4d. RESOLUTION APPROVING AGREEMENT FOR FOOD SERVICE MANAGEMENT AND SEPARATION AGREEMENT (D'A,-IICO) 4e. RESOLUTION APPROVING A FOOD SERVICE MANAGEMENT AGREEMENT FOR THE EARLE BROWN HERITAGE CENTER (FLIK INTERNATIONAL CORPORATION) Mr. McCauley requested approving item 4d and 4e under one motion. Item 4d was to close out and terminate Nvith D'Amico and Partners Hospitality Consultants, and item 4e was to approve a food service agreement with Flik International Corporation. RESOLUTION NO. 99 -04 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION APPROVING AGREEMENT FOR FOOD SERVICE MANAGEMENT AND SEPARATION AGREEMENT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hilstrom. Motion passed unanimously. RESOLUTION NO. 99 -05 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION APPROVING A FOOD SERVICE MANAGEMENT AGREEMENT FOR THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hilstrom. ;viotion passed unanimously. 1/11/99 -4- 5. ADJOURNMENT A motion by Councilmember Ifilstrom, seconded by Councilmember Lasman to adjourn the meeting at 9:42 p.m. Motion pissed unanimously. President 1/11/99 -5- DRAFT i