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HomeMy WebLinkAbout2002 05-28 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 MAY 28, 2002 WEST FIRE STATION TRAINING ROOM 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order at 8:02 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness, Commissioners Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: City Manager Michael McCauley, Assistant City Manager Jane Chambers, Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Nelson, seconded by Commissioner Peppe to approve the agenda and consent agenda with the addition of 4b, Motion to Approve Extension for Real Estate Closing on 69 and Brooklyn Boulevard from May 31, 2002, to June 11, 2002. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Nelson, seconded by Commissioner Peppe to approve the May 13, 2002, regular session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT AND APPROVING THE ASSIGNMENT OF DEVELOPERS'S RIGHTS TO CERTAIN TAX INCREMENT PAYMENTS 05/28/02 -1- Executive Director Michael McCauley discussed that the EDA recently discussed an amendment to the Twin Lakes Business Park agreement and that this resolution would approve and authorize execution of a first amendment to the development agreement and approve the assignment of developer's rights to certain tax increment payments. The amendment would reflect the original amount of assistance that was contemplated before the tax law changes. The developer is paying the estimated level of real estate taxes, but the available increment is much lower due to the State's assumption of a portion of the real estate tax. The time frame for repayment of the notes would be therefore extended to pay off the notes. Councilmember Ricker questioned the first agreement and the timeframe for construction of Phase Three. Mr. McCauley informed the Commission that the amendment to the agreement is to provide financial stability of the project for Phase Three and suggested that Paul Hyde discuss the construction. Paul Hyde, Real Estate Recycling, addressed the Commission to discuss that things have just started to pick up after being slowed down by the events on September 11, 2001, and that they are actively marketing for their goal of yet this year to start construction. The Commission discussed the two tax increment revenue notes and the tax float rate. Mr. McCauley informed the Commission that any agreement can be amended and that there would be a public hearing required if there is a tax float rate. RESOLUTION NO. 2002-08 Commissioner Ricker introduced the following resolution and moved its adoption: RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT AND APPROVING THE ASSIGNMENT OF DEVELOPERS'S RIGHTS TO CERTAIN TAX INCREMENT PAYMENTS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Nelson. Motion passed unanimously. 4b. MOTION TO APPROVE EXTENSION FOR REAL ESTATE CLOSING ON 69" AND BROOKLYN BOULEVARD FROM MAY 31, 2002 TO JUNE 11, 2002 Mr. McCauley informed the Commission that it had been requested to change the closing date from May 31, 2002, to June 11, 2002, since the Planning Commission and the City Council have not approved the project. The developer has provided proof of financing; however, a contingency of the bank is that the City has approved the project. There is no unseen reason for this item to not be approved by the Planning Commission or the City Council and it is recommended to approve the extension of closing to June 11, 2002. 05/28/02 -2- A motion by Commissioner Lasman, seconded by Commissioner Nelson to approve the extension for real estate closing from May 31, 2002, to June 11, 2002. Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Ricker to adjourn the meeting at 8:13 p.m. Motion passed unanimously. Presided 05/28/02 -3-