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HomeMy WebLinkAbout2026_05-26_CCP_EDAECONOMIC DEVELOPMENT AUTHORITY MEETING City Hall Council Chambers May 26, 2026 AGENDA 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent Agenda These items are considered to be routine by the City Council and will be enacted by one motion. There isn't a separate discussion for these items unless a Councilmember so requests, then it is moved to the end of the Council Consideration Items. a. Approval of Minutes - Motion to approve the following minutes: • April 27, 2026, EDA Meeting 4. Commission Consideration Items a. Review of Entrepreneurial Fund Proposal - This is a presentation. No action is required; however, questions and comments are requested. b. EDA Update - No EDA action is required. c. Resolution Approving a Preliminary Development Agreement with McNeal Management, Inc. - Motion for the Economic Development Authority of the City of Brooklyn Center to enter into a Preliminary Development Agreement with McNeal Management, Inc. for the Subject Property located at 1950 57th Avenue North. 5. Adjournment Page 1 of 37 Council Regular Meeting DATE: 5/26/2026 TO: Economic Development Authority FROM: THROUGH: BY: Shannon Pettit, City Clerk SUBJECT: Approval of Minutes Requested Council Action: - Motion to approve the following minutes: • April 27, 2026, EDA Meeting Background: Budget Issues: Inclusive Community Engagement: Antiracist/Equity Policy Effect: Strategic Priorities and Values: ATTACHMENTS: 1. 2026.04.27 EDA DRAFT Page 2 of 37 04/27/26 -1- DRAFT 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 APRIL 27, 2026 CITY HALL – COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President April Graves at 7:43 p.m. 2. ROLL CALL President April Graves and Commissioners Dan Jerzak, Teneshia Kragness, and Laurie Ann Moore. Also present were Deputy City Manager Daren Nyquist, Planning Manager Ginny McIntosh, City Clerk Shannon Pettit, and City Attorney Siobhan Tolar. Commissioner Kris Lawrence-Anderson was absent and excused. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Moore moved and President Graves seconded to approve the Agenda and Consent Agenda, as amended, and the following item was approved: 3a. APPROVAL OF MINUTES 1. March 23, 2026 – Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. PROPOSAL: SCOOTER’S COFFEE (6245 BROOKLYN BOULEVARD) Planning Manager Ginny McIntosh explained that there is a concept review for a Scooter's Coffee located at 6245 Brooklyn Boulevard at an EDA-owned property. The property is quite small at 0.36 acres and has a triple frontage off of 63rd and Brooklyn Boulevard, and is zoned as a neighborhood mixed-use. The property is currently vacant to the west of the ETA, probably is. The former use on that property was an automotive and a service station use. The neighboring land uses include a commercial strip mall to the south, multi-family residential townhouses to the Page 3 of 37 04/27/26 -2- DRAFT west, and the West Fire Station to the east. She added that this is a very small commercial property and is basically an oversized R1 or residential lot. Ms. McIntosh explained that the property has great visibility with three frontages and is situated at a signalized intersection. Drive-thru eating establishments are a conditional use in the MX-N2 district. The EDA purchased these two properties for $280,000 in 2013, and they were purchased as vacant property. The former autorotative use had underground tanks that were removed, and cleanup was completed in 1991. There is an MPCA letter on file that indicates adequate cleanup of the petroleum release. The property was acquired by the former owner in 1993 for the same price, and when it was purchased by the EDA in 2013 that was the justification and the resolution as part of the acquisition of this property it facilitated some improvements along Brooklyn Boulevard including the installation of a new right turn lane on 63rd Avenue North, a new sidewalk, new trail, and a new bus stop also on 63rd. The median land value of neighboring properties is between $8 to $10 per square foot, or $108,000 or $135,000 for a similar-sized property. City Staff also had some CoStar recent sales data pulled with Ehlers just to review for comparables. The Hennepin County Assessor's Office did prove a 2025 payable, 2026 valuation of $133,000 for the property, and the offer amount at this time, with the letter of intent, was for $150,000 for the property or approximately $10.20 per square foot. There is a 90-day due diligence to study the site, with three optimal 30-day extensions for the concept. She added that City Staff did work with a broker on numerous fit plans. The Scooter's Coffee location would operate similarly to a Caribou Cabin or a Starbucks drive-thru, with no seating for customers inside the building. There would be a walk-up window with an outdoor patio, a drive-thru with queuing for eight vehicles, and a private curb cut access off Ewing Avenue North. She noted that there were discussions around consolidating access with the strip mall, but it did not work in the end, as there was a need for the parking. Ms. McIntosh asked if there were any concerns regarding the concept layout that the Developer/Buyer should take into consideration. She asked if the EDA is amenable to the concept and project, and the City Attorney would draft a Purchase and Development Agreement to be brought forward at a later date. In order to process, the Developer/Buyer would need to submit a Planning Commission application and receive City Council approval for proposed development and a conditional use permit at a minimum, in order to proceed to a closing. Ms. McIntosh noted that the representation for Scooter's, as well as the broker, is in the audience and online for any questions. Commissioner Jerzak noted he absolutely supports this project, and utilization of this lot has minimal uses, and it has been mowed and maintained by the City for years. He noted his only concern was the apartments on Ewing Avenue, as there is not a lot of parking there, so if there is snow and there is no parking on both sides of the street, making a right or left turn there might be difficult in the winter. He added that it is his only concern, and he wanted to bring it to everyone's attention as it is not a problem that can be overcome. Commissioner Moore asked Ms. McIntosh to clarify the issue with going south into the parking lot. Ms. McIntosh stated that Engineers and Planners are always looking to consolidate curb cuts, Page 4 of 37 04/27/26 -3- DRAFT and if it can be avoided, they are going to avoid it. One of the big goals was to consolidate all these curb cuts so that people are not slamming on their brakes, rear-ending people, and creating additional safety hazards. Initially, there was a conversation about sharing access on the north curb cut on Ewing that is owned by the strip mall, to save space for that EDA site and have access shared, but ultimately that was not a path forward as the strip mall would lose some parking spaces, and needs the parking and did not want to give it up. This is why City Staff then started to look at the location having private access on their own property. If the strip mall had agreed to shared access, there would have been some kind of shared access agreement negotiation between the two parties in order to have it. President Graves asked to know a little bit more about Scooter’s Coffee and if they have tea, food, or if it is strictly coffee. Ms. McIntosh noted that there is representation online, and both Stephanie and Marissa with Scooters coffee are available if they would like to speak. Ms. McIntosh stated that she would unmute both Stephanie and Marissa if either wanted to speak about the products that Scooter's Coffee has. Ms. Tracy noted she is on the real estate team for Scooter's Coffee, based out of Omaha, Nebraska. She stated that Scooter's Coffee is open 5:00 a.m. to 8:00 p.m. and sells coffee, espresso-based beverages, smoothies, teas, Red Bull infusions, pastry items, breakfast danishes, and afternoon food offerings. President Graves thanked Ms. Tracy for the information, because she does not drink coffee and was hoping there would be other options. Ms. Tracy noted there are a lot of options for non-coffee drinkers, including smoothies and milkshakes that are phenomenal. President Graves asked how many Scooter locations are in Metro Minneapolis. Ms. Tracy stated there are eight at this time, and there are 912 locations nationwide across 32 states. Commissioner Moore moved and President Graves seconded to have the City Attorney prepare a Purchase and Development Agreement and schedule a Public Hearing regarding the sale of the Subject Property located at 6245 Brooklyn Boulevard. Motion passed unanimously. 5. COMMISSION DISCUSSION ITEMS 5a. ECONOMIC DEVELOPMENT UPDATE Ms. McIntosh noted that she would give a quick update, as there is nothing major to update at this time. The former Brown College site at 5951 Earle Brown Drive was under discussion around a Page 5 of 37 04/27/26 -4- DRAFT proposed market-rate development that would consist of two, five to six-story multi-family buildings that would be adjacent to the former Target site that the City owns, and at least 20 modern townhouses. There was interest from a developer, and while this is a privately owned site, there are some adjacencies with the EDA on the property. So there is some interest coming to the May EDA meeting to discuss their plans with the EDA, but nothing is for sure at this time. Ms. McIntosh noted there have also been discussions around 6200 and 6300 Shingle Creek Parkway, which are the two large indestructible concrete buildings across from Shingle Creek Parkway, just north of the former Target site, that have largely sat vacant for quite a while. Those buildings were constructed in the 1980's by Ryan Companies, and there has been a general struggle to get tenants in those buildings, specifically the north building. There is a developer interested, however, in converting these buildings into housing, and City Staff has been waiting for a formal application and some documentation, while monitoring the financial aspect of converting those properties. Ms. McIntosh added that City Staff have had additional meetings with Pastor Lewis of Resurrecting Faith World Ministries, who was one of the proposed developers for phase one of the Opportunity Site. There were specific discussions around the ability to locate within the 6200 or the 6300 building on the ground floor, so this would be a mixed-use project if that were to occur. Ms. McIntosh continued that Tommy McNiel of the Flame development has been in ongoing discussions around moving forward on the development agreement for a portion of the site at 57th and Logan. Ms. McIntosh explained that both she and Economic Development Manager Ian Alexander have been in discussions with two geothermal groups for district energy that include Cordia and Centerpoint, and there has been some progress with one of them. She added that she and Mr. Alexander are not allowed to disclose more at this time, but will let the EDA know more when they can. Ms. McIntosh noted that City staff have been having discussions with Health Partners regarding the possibility of consolidating the Healthcare dental clinic and Urgent Care facilities in Brooklyn Center on the opportunity site. Their current dental clinic, which is off of John Martin Drive, is in a quirky location with a perpetual easement agreement on the City's EDA-owned property for parking because they cannot fit their own parking and need more space. The Brookdale Clinic property is under a trust and is not owned by Health Partners, so there has been discussion around consolidating those two operations into one location and keeping it in Brooklyn Center. President Graves asked if the Dental Clinic would merge with the clinic by the Post Office. Ms. McIntosh stated the clinics will remain separate. Ms. McIntosh added that the Brooklyn Center Chamber of Commerce has been meeting with Staff about holding their first event here in the summertime on the former Target site, so there will be more to come on that. She noted that some quick updates for new businesses were summarized in the EDA update, but those include a new honey wine business, which is an Ethiopian honey wine Page 6 of 37 04/27/26 -5- DRAFT that is operating out of a space off of Shingle Creek Parkway. Another new business is Favorite Creation Bridal, located in Shingle Creek Center, which provides multicultural bridal and event services, as well as retail space. The other business, as the Council knows, is Fit Butters, which had a grand opening and ribbon-cutting ceremony. Ms. McIntosh noted some recent construction and developments include Brookdale Luther Honda, which is underway and expanding its dealership by an additional 2,200 square feet to add a six- service bay. The valuation of the work is a $1 million. She added that she wanted to provide some clarification, as there were some discussions with Commissioner Jerzak, and when she states the valuation of any project, that does not mean the City is receiving $1 million; that amount is used to determine a permit calculation. With this particular project, the $1 million valuation equates to $10,000 in permit revenue on the building permit alone. Typically, if the builder is doing a full- scale edition or a building, they are also looking at electrical permits, plumbing permits, mechanical permits, fire permits, and other additional permits that all generate revenue, and the value of the building itself goes up eventually. When the City calculates the building permit fees, the amount the City keeps is going to be the building permit fee and the plan review fee, or the commercial plan review fee. There is also a potential stack charge, which comes from the Metropolitan Council, and requires the City to collect it on their behalf for sewer access. If the City turns in that charge on time, the City gets one percent of whatever the value was on that charge. Ms. McIntosh continued that the Staff recently had a pre-construction meeting for 5831 Brooklyn Boulevard for the dental clinic that requested a 780 square foot expansion last year and interior and exterior remodel work to the whole building. The dental clinic in question is hoping to start construction in the second week of May and finish by the end of September, with an estimated valuation of $500,000. Ms. McIntosh added that 5930 Earle Brown Drive is the Hmong Shopping Center that was recently acquired by Benderson and is the former Slumberland and Kmart site. As it stands now, the owner would keep Dollar Tree as a tenant for the time being and is currently looking to remodel the space directly adjacent to the Dollar Tree space. She added that this is a phased project, and the owners are still working through what to do with the rest of the building, as it is 115,000 square feet. More meetings will follow as discussions continue with City Staff and the owners to figure out what to do with the rest of the property. At this time, for the grocery store space that is being remodeled, there is planned interior renovation work, concrete and paint work, and bathroom additions totaling a $4.2 million valuation project, and possibly a $31,000 permit for the City. Ms. McIntosh stated the last and final construction project is at 3900 Lake Breeze Avenue North, which is the Caribou Coffee Headquarters, and they are looking to undertake a $1.5 million interior build-out of their first and second floors, specifically their reception and break areas, open and private offices, and meeting rooms. A few years ago, this same building underwent other renovations, so they are continuing to invest in their building at this location. Page 7 of 37 04/27/26 -6- DRAFT Ms. McIntosh added that EDA Staff continue to work with funding partners on various grants to help pay for development costs in the City. The EDA has historically had a good track record on getting grants, and that is something the Department will continue to go after. President Graves thanked Ms. McIntosh for the update, and it is good to see some momentum building in the City. Commissioner Jerzak added so people understand that the building fees are shared with the state, and they get their cut for plumbing and such too, so they are not just gross numbers to us, but there are definite values, and that is the reason he asked for clarity. He noted he is very appreciative of these recaps, and knows at one point there were three different proposals and discussion of not only grocery stores but also relocating Restaurant Depot and adding other grocery stores like Sun Foods, Empire, and a number of things like that and it is not for the City to do that, but it becomes a question of capacity in a phased project like this. He asked about the property at Lake Breeze because, at one point, Caribou Coffee had indicated they were going to Maple Grove and leasing 100,000 square feet. He asked if that deal fell through. Ms. McIntosh stated that the deal did not fall through, and Caribou Coffee is leasing that additional space in Maple Grove for warehousing. Commissioner Jerzak stated that the City ran into the perpetual easement issue like the one with the dental clinic, when a business was renting a space to park cars and stuff in there, but there still needs to be some infrastructure there. He asked if that plan could be accommodated without the easement. Ms. McIntosh stated she would have to check with Mr. Alexander, but the Opportunity Site is not limited to one location, and different locations could be looked at. Commissioner Jerzak stated that was all he wanted to know, and that other considerations could be made. He added that these updates are very helpful. President Graves agreed, and it is important for community members to know what is happening and how people are investing in the City. 6. ADJOURNMENT President Graves moved and Commissioner Jerzak seconded the adjournment of the Economic Development Authority meeting at 9:12 p.m. Motion passed unanimously. Page 8 of 37 Council Regular Meeting DATE: 5/26/2026 TO: Economic Development Authority FROM: Ian Alexander, Economic Development Manager, Amy Loegering, Economic Development Coordinator THROUGH: Jason Aarsvold, Ehlers BY: Amy Loegering, Economic Development Coordinator SUBJECT: Review of Entrepreneurial Fund Proposal Requested Council Action: - This is a presentation. No action is required; however, questions and comments are requested. Background: The City’s consultant, Brian Smith of Fortis Capital, will be presenting on the subject of updates to the small business revolving loan program. Background: Fortis Capital was engaged to structure a framework for the City designed to allow alternative funding sources to participate in the City's small business support efforts. This structure is intended to improve sustainability and expand resources without burdening the City's tax base and is modeled after Minneapolis' Ownership and Opportunity Fund. This model is designed to offer flexibility as the City's needs develop. This engagement also included reforming the EDA’s revolving loan program and making recommendations to improve the loan application review process, loan servicing, and payment compliance. Fortis conducted interviews with City staff and local businesses specifically related to the revolving loan program. Staff expressed concerns about limited training, insufficient tools for loan management, and public perception issues. Businesses reported low awareness of the existing program, noting that it often does not meet their needs or that funding is too limited. There is strong interest in a more comprehensive, clearly communicated small business support program. Feedback from lending professionals indicated that an entirely new program structure was necessary to make it appealing to potential funding partners and interest in this new partnership opportunity was positive. Taking into consideration the City's current budget limitations, a leading goal of the current program redesign was to permit funding through external sources. If external resources are secured, the program anticipates administration by a qualified third-party partner, as City staff do not have the capacity and specialized expertise to administer complex programs internally. The proposed framework allows for future external funding Page 9 of 37 and does not require additional commitments from City resources. Fortis also prepared improved loan policy materials and tools tailored to small and startup businesses. These resources can support either internal management or delegation to an external partner. A copy of the PowerPoint presentation by Fortis Capital is included for your review. Budget Issues: None at this time. Inclusive Community Engagement: Antiracist/Equity Policy Effect: Strategic Priorities and Values: ATTACHMENTS: 1. PowerPoint Presentation — Fortis Capital Page 10 of 37 5/18/2026 1 City of Brooklyn Center Economic Development Products 1 2 Fortis Capital Overview 1 2 Page 11 of 37 5/18/2026 2 3 Our Values Innovation Integrity Joy Simplicity We embrace new ideas and challenge conventions to discover untapped potential. By taking calculated risks, we develop creative solutions that drive progress. We operate with unwavering principles, ensuring honesty, ethics, and transparency in all actions. By staying true to these values, we build trust and lasting relationships. We bring joy and passion to our work, creating a positive environment for our team, partners and clients. While we are deeply committed to excellence, we don’t take ourselves too seriously—creating space for authenticity, collaboration, and meaningful connection. We simplify complex processes, making it easy for clients to understand and engage with us. Clear communication and straightforward solutions are at the core of our approach. Our Mission Bridge the capital gap through creative financing for entrepreneurs with our partners. Our innovative models make financing possible for our clients that wouldn’t otherwise be available through traditional lending. Ensure entrepreneurs can access capital regardless of their identity or geography. Our Vision Fortis Capital is a non-profit corporation engaged in economic development finance in Minnesota. We unlock access to debt capital for growing businesses from communities that are systemically underserved. Traditional lending creates barriers for rural, BIPOC and women entrepreneurs from wealth- building capital •Research from the Federal Reserve Bank of Minneapolis shows that self-employment is a critical pathway to wealth-building, yet launching and sustaining a business requires access to capital. •Traditional lending relies heavily on collateral (real estate, savings, and other assets), strong credit scores, operating history, personal net worth, and formal financial documentation—resources shaped by longstanding geographic, racial and gender wealth gaps. •As a result, BIPOC- and women-owned businesses face disproportionate loan denials; 2023 Federal Reserve Small Business Credit Survey data show that Black-owned businesses are denied financing at nearly twice the rate of white-owned businesses. •Banks and traditional lenders are highly regulated by the FDIC to protect customer’s assets, so they are less flexible in what they can fund, and under what terms. 4 $100K $400K Equity Bank Equity is often required for traditional lending A lender puts up a portion of equity to secure a loan from a bank. For small and emerging businesses, this equity often comes from a home, savings, inheritance etc; which most American's simply don't have. $50K $50K $100K $200K Equity Equity gap Bank loan gap Bank Traditional lending can create gaps For communities that don’t have enough equity, they are not able to secure loans from a bank to grow their business, purchase and/or develop commercial properties. Loans often don’t happen when this gap exists or the gap is filled with predatory rates. $50K $150K$200K Equity Fortis participation Bank Fortis participation closes the gap By participating in the loan with grant or PRI investments, Fortis helps ensure deals occur, allowing businesses to secure the full amount needed and for banks to make the larger loan possible. 3 4 Page 12 of 37 5/18/2026 3 Our impact 5 $1.7M $2.2M Loans by gender Female Male 19 1 2 1 1 1 0 5 10 15 20 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 African American American Indian Latino Middle Eastern Mixed Race White # o f l o a n s Lo a n a m o u n t Loan amount and volume by race Loan amount # of loans Loans by industry Real Estate Rental and Leasing Food Services Health Care and Social Assistance Construction Professional Services 37 loans have been made by Fortis, totaling $29.5M 314 jobs Fortis’ investments leveraged in other financing and equity And resulted in the creation over $4M $1.00 $7.36 Fortis invesment Dollars leveraged 7X Investing in Fortis yields over a 7x impact on investments into the community. Fortis Capital ensures that viable Minnesota businesses are not denied opportunity simply because the traditional system was not built for them. •Beyond financial returns, Fortis’ investments generate meaningful community impact. •Supporting small developers to improve rather than demolish neighborhoods enhances safety, raises property values, and encourages local development while preserving cultural vibrancy. •Financing spaces for restaurants and services fosters community connection, trust, and safety. •Every loan we structure represents a business stabilized, jobs created or retained, wealth generated locally and a stronger Minnesota economy •We are not providing grants. We are providing responsible capital that circulates and multiplies. * * Full-time, part-time and seasonal 6 Our team Norris Williams Board Director Brian Smith Chairman, Founder and CEO Shawn Huckleby Board Director Andrea Larson Chief Strategy and Operations Officer Mara O’Neill Director of Lending Ashley Bade Accounting 5 6 Page 13 of 37 5/18/2026 4 7 Brooklyn Center Findings Brooklyn Center Program Gaps •Insufficient funding to produce measurable benefit •Limited funding assists few businesses •Limited flexibility restricts business access to capital •Limited staff capacity restricts administration •Insufficient tools and training result in staff uncertainty 8 7 8 Page 14 of 37 5/18/2026 5 Proposed framework provides •Policy framework is appealing to financial partners •Access to more resources produces measurable results •Greater flexibility for business needs •Expanded program supports real estate development while reducing reliance on TIF •Improved administrative framework allows city staff to administer a small scale, city funded program or allows a third-party administrator to manage the program with outside lending partners 9 Framework Goals •Attract outside financial partners •Improve Small Business Support •Reduce reliance on TIF as the only tool to attract commercial development •Improved loan compliance 10 9 10 Page 15 of 37 5/18/2026 6 11 The following include recommendations for products Brooklyn Center should implement to improve capital gaps and the actions and next steps required to build and sustain those product offerings. Recommendations Programs like these provide businesses with the financial support they need to thrive, even when traditional lending options fall short. 12 Participation loan program Revolving line of credit 2% forgivable loan program This program helps lending partners, banks, CDCs and CDFIs, make loans to companies that otherwise would not qualify by buying a participating interest in loans that are underwritten, made and serviced by lending partners. This product will purchase a participation in a revolving line of credit made by a bank lending partner in an amount that is the lesser of a specified amount or 50% of the total line. This new product makes affordable loans up to a certain amount to businesses for general business purposes, including operating capital. Direct Loans Direct loans to borrowers with or without another bank or community nonprofit lender involved in a project. Direct loans are limited to no more than a specified amount per borrower or individual guarantor. Entrepreneurial Equity Fund (EEF) This program makes ownership of commercial property possible for disadvantaged buyers. The term of the loan is 20 years. The interest rate is 0%. There are no payments due. Each year, starting with year 11, on the first business day of the year, 10% of the loan balance is forgiven. After 20 years, all the principal is forgiven. 11 12 Page 16 of 37 5/18/2026 7 Actions steps to develop and sustain products 13 •The City of Brooklyn Center should adopt the programs that they would like incorporated. In priority order, we recommend: o Participation loans o Entrepreneurial Equity Fund (EEF) o Revolving line of credit program o Forgivable loans o Direct loans •We also recommend selecting a partner to administer the program. o Building this capacity internally would be challenging and time consuming. 14 Questions? 13 14 Page 17 of 37 Council Regular Meeting DATE: 5/26/2026 TO: Economic Development Authority FROM: Ian Alexander, Economic Development Manager THROUGH: Jason Aarsvold, Ehlers BY: Amy Loegering, Economic Development Coordinator SUBJECT: EDA Update Requested Council Action: - No EDA action is required. Background: 1. Brooklyn Center 2030 Vision – Mixed-Use Stadium Village / Opportunity Site Advancement The Brooklyn Center 2030 civic framework remains the central driver of our economic development efforts. This long-term vision transforms the Greater Opportunity Site, Shingle Creek Crossing corridor, and Heritage Site into a vibrant mixed-use regional destination anchored by a Stadium Village concept, a year-round Urban Blueway along Shingle Creek, and high-density mixed-use development. Recent Progress Includes: • Lobby Edge and the Stadium Village Host Committee continue active stakeholder coordination and narrative development. • Ongoing conversations with a development group have produced a proposal expected in late June 2026. • The HealthPartners Community Health Campus is advancing, with senior HealthPartners leadership review scheduled for May 22, 2026. This project will serve as a major healthcare anchor for the Opportunity Site. 2. Bonding / Special Legislation The Good News: We received $3,000,000 in State GO Bonding for “Opportunity Site Public Infrastructure” this legislative session! This should permit us to complete Earl Brown Drive in the sections between John Martin Drive and Shingle Creek Parkway. EDA Timeline: September meeting – conversation about next legislative session. 3. Grants & Funding Strategy Our Grants & Funding Strategy continues to focus on maximizing existing resources to deliver critical public infrastructure that unlocks private investment. A key priority is advancing roadway improvements on and around the Opportunity Site to improve connectivity, circulation, and access — essential elements Page 18 of 37 for attracting developers and supporting higher-density mixed-use development. Grants Include: • 2022 Metropolitan Council LCDA – Site Acquisition, Affordable Housing & Job Creation ($2M) • 2023 Transportation Economic Development Incentive (TEDI) – Parkway improvements ($500K) • 2023 Metropolitan Council Pre-Development Grant – Resurrection Faith site ($300K) • 2024 Hennepin County Transit Oriented Communities (TOC) – Parkway & Stormwater ($500K) • 2024 Metropolitan Council LCDA-TOD – Stormwater Park & Parkway Construction ($2M, Grant No. SG-22087) • 2026 State of Minnesota – GO Bonding – Opportunity Site Infrastructure ($3M) This funding stack positions us to deliver functional roadways and supporting infrastructure without new general fund commitments. It directly addresses the fragmented nature of the site by creating clear, connected development parcels that are far more attractive to master developers. 3. Scooter’s Coffee – 6425 Brooklyn Blvd. Staff is working with Scooter’s Coffee to finalize a purchase and development agreement for the property at 6425 Brooklyn Blvd. Sale of the property requires the EDA to hold a public hearing and approve the purchase and development agreement. Scooter’s would like to have that agreement approved before preparing its plans for submission. In the interest of time, staff is planning for a special EDA meeting on June 8, 2026 rather than waiting until the regularly scheduled EDA meeting on June 22, 2026. This will give the project a two- week head start. 4. Additional Items (Odds & Ends) • NEA Grant Opportunity: There is a National Endowment for the Arts (NEA) grant with a July deadline offering up to $100,000 in matching funds. The City match can be in the form of staff time/salary, making this a very favorable opportunity. A resolution and letters of support from Council/Mayor may be required. Budget Issues: Inclusive Community Engagement: Antiracist/Equity Policy Effect: Page 19 of 37 Strategic Priorities and Values: ATTACHMENTS: None Page 20 of 37 Council Regular Meeting DATE: 5/26/2026 TO: Economic Development Authority FROM: Ian Alexander, Economic Development Manager, Amy Loegering, Economic Development Coordinator THROUGH: Jason Aarsvold, Ehlers BY: Amy Loegering, Economic Development Coordinator SUBJECT: Resolution Approving a Preliminary Development Agreement with McNeal Management, Inc. Requested Council Action: - Motion for the Economic Development Authority of the City of Brooklyn Center to enter into a Preliminary Development Agreement with McNeal Management, Inc. for the Subject Property located at 1950 57th Avenue North. Background: Background: The Economic Development Authority of the City of Brooklyn Center (EDA) currently owns the parcel of land located at 57th Avenue North and Logan Avenue North legally described as Lot 002, Block 001 Northbrook Center 3rd Addition, commonly addressed as 1950 57th Avenue North, and bearing Hennepin County PID 02-118-21-13-0033 (the “Property”). McNeal Management, Inc. seeks to acquire the Property for redevelopment. McNeal Management, Inc. came before the EDA Executive Board on March 23, 2026, with a concept plan for review and the EDA was generally supportive in forwarding the proposal. The concept is for an approximate 30,000 square foot mixed-use facility consisting of a business center to support entrepreneurship and professional development, an approximate 15,000 square foot indoor event space with a seasonal patio, commercial kitchen, café and catering area, and approximately 6 boutique hotel suites. This request seeks approval to enter into a Preliminary Development Agreement substantially similar to the Preliminary Development Agreement attached hereto. Any development relating to the Agreement would be subject to standard Planning Commission and City Council review. Next Steps: If approved, City staff will coordinate with the City attorney and McNeal Management, Inc. to execute the Preliminary Development Agreement. Following execution of the Predevelopment Agreement, City staff will coordinate with McNeal Management, Inc. to bring the proposed development through the standard Page 21 of 37 Planning Commission and City Council review process. 1950 57th Avenue North: The Subject Property is located on approximately 4.72-acres and located to the east of Trunk Highway (TH) 100 and the 57th Avenue North access to TH 100, to the south of the Extra Storage Space (5721 Logan Ave N), north of 57th Avenue North, and west of Logan Avenue North, and legally described as Lot 002, Block 001, Northbrook Center 3rd Addition. The City’s Economic Development Authority acquired the Subject Property in a strategic acquisition of the larger overall parcel bordered by Logan Avenue to the east, 57th Avenue to the south and the 57th Avenue North access road to TH 100 to the northwest. The parcel was acquired via eminent domain in 2005 and the City enrolled the property in the Minnesota Pollution Control Agency’s (“MPCA”) Voluntary Investigation and Clean-up Program (“VIC”) to address the investigation of contaminants found on the north end of the parcel associated with a former dry-cleaning facility. Available records indicate that a dry-cleaning facility operated on the site from approximately 1966 until sometime in the late 1980s or early 1990s. The specific contaminants of concern are Tetrachloroethylene (“PCE”) and Trichloroethylene (“TCE”), both of which are Volatile Organic Compounds (“VOC’s”). Environmental investigations conducted by the City’s environmental consultant in 2005 indicated the presence of PCE and TCE contamination in ground water and soil vapor east and southeast of the former dry- cleaning facility. Following a review of the MPCA's What's in my Neighborhood? map, it appears the Property is also in proximity to two inactive brownfield and hazardous waste sites: Acme Typewriter and Lake City Auto Repair. The Property is currently zoned Neighborhood Mixed-Use (MX-N1); however, would likely require a rezoning to Commerce — Service/Office (C) District to forward the use on the Property. Predevelopment Agreement A draft of the Preliminary Development Agreement is attached to this memo for reference. This Agreement may be revised by the parties as necessary and as approved by the City Attorney; however, the Agreement will remain substantially in the form presented. The Preliminary Development Agreement requires McNeal Management, Inc. to deposit $2,500 with the EDA and pay all costs associated with the preparation of the Agreement as a condition of entering into a Purchase and Development Agreement prior to the expiration of the Preliminary Development Agreement, no later than January 1, 2028, when the Agreement expires by its own terms. Page 22 of 37 Budget Issues: The Subject Property was acquired by the City of Brooklyn Center Economic Development Authority as part of the eminent taking of a larger parcel and total environmental monitoring costs associated with the larger parcel are $457,590.00, of which $155,227 were TIF 3 expenses. The Subject Property is a portion of the larger parcel. The City’s Tax Increment Financing Plan identifies the following objectives in establishing the aforementioned District: 1. To enhance the tax base of the City; 2. To provide maximum opportunity, consistent with the needs of the City for development by private enterprise; 3. To better utilize vacant or underdeveloped land; 4. To attract new business; 5. To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and 6. To develop housing opportunities for market segments underserved by the City, including housing for the disabled and elderly. Inclusive Community Engagement: Antiracist/Equity Policy Effect: Strategic Priorities and Values: ATTACHMENTS: 1. PowerPoint Presentation — McNeal Management (Flame) 2. Preliminary Development Agreement — Between Economic Development Authority of the City of Brooklyn Center and McNeal Management (1950 57th Avenue N) 3. EDA Resolution — Entering into a Predevelopment Agreement with McNeal Management Page 23 of 37 5/21/2026 1 McNeal Event and Business Center McNeal Management, Inc. Predevelopment Agreement Ian Alexander, Economic Development Manager •McNeal Management, Inc. came before EDA on March 23, 2026 with a concept plan •Owner and Developer Tommy McNeal brings 20+ years’ experience in corporate, entrepreneurial and non- profit experience. •Project features 30,000 sq. ft. mixed-use commercial facility. 2 Predevelopment Agreement Background 1 2 Page 24 of 37 5/21/2026 2 3 •30,000 sq. ft. mixed-use facility •Supports entrepreneurship and professional development •15,000 sq. ft. indoor venue •Seasonal patio •Café and catering •Six boutique hotel suites McNeal Event and Business Center Preliminary Concept 4 •Larger triangle shaped parcel (8.17 acres) acquired via eminent domain in 2005 •City enrolled site in MPCA’s VIC Program to address contaminants associated with former dry cleaner on north end of lot •Total costs associated with 8.17 parcel total $457,590.00, of which $155,227 were TIF 3 expenses •Proposed site is zoned Neighborhood Mixed Use (MX-N1) 57th and N. Logan Ave (No Address Assigned) Parcel Information 3 4 Page 25 of 37 5/21/2026 3 5 •Provides framework for McNeal Management, Inc. to proceed with due diligence, including its financing structure •Expires January 1, 2028 •Includes approximately the western half of the parcel •Requires reimbursement of costs incurred by EDA related to the agreement •Any future sale would require a separate purchase and development agreement 57th and N. Logan Ave (No Address Assigned) Predevelopment Agreement 6 •Motion to approve a Predevelopment Contract with McNeal Management, Inc. McNeal Event and Business Center EDA Recommended Action 5 6 Page 26 of 37 1 4907-7181-3799.3 PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT is made and entered into this ___ of May, 2026, by and between the Economic Development Authority of Brooklyn Center, Minnesota (the “Authority”) with its principal office at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, and McNeal Management, Inc., a Minnesota corporation (the “Developer”) with its principal office at 3548 Zane Ave, Crystal MN 55422, hereinafter each being a “Party” and together the “Parties. WITNESSETH: WHEREAS, the Authority is the owner of certain real property located in the northwest quadrant of the intersection of 57th and N. Logan Ave in the City of Brooklyn Center (the “City”), consisting of approximately five (5) acres and generally depicted on Exhibit A (the “Authority Property”); and WHEREAS, portions of the Authority Property are impacted by existing power line easements and/or rights- of-way that significantly limit usability, and portions on the west and south sides may be subject to potential future governmental takings, condemnations, dedications, or road/utility improvements; and WHEREAS, the Authority’s Board of Commissioners has reviewed the Developer’s development concept and desires to enter into this Preliminary Development Agreement in connection with the proposed design, construction and equipping of an approximately 30,000 sq. ft. mixed-use facility … on an initial usable portion of the Authority Property (the “Initial Development Parcel”), with the possibility of future expansion onto additional usable portions of the Authority Property as may be mutually agreed upon in a Definitive Contract (collectively, the “Development”); and WHEREAS, the Authority and Developer intend to proceed with the Development if: (i) a design for the Development can be agreed upon by the Authority and the Developer; (ii) a satisfactory agreement can be reached regarding the purchase price to be paid by the Developer for the Authority Property; (iii) satisfactory financing for the Development can be secured: and (iv) the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the Parties. For purposes of this Agreement, “Initial Development Parcel” means a mutually acceptable usable portion of the Authority Property (anticipated to be approximately one-quarter (1/4) of the usable area), the exact boundaries of which will be determined by mutual agreement of the parties during the Term based on the Developer’s studies and site constraints. NOW, THEREFORE, in consideration of the foregoing, the Authority and the Developer hereby agree as follows: Section 1. Preliminary Nature of Agreement. The Authority and Developer agree that this Agreement is intended to be preliminary in nature. Before the Authority and Developer can make a decision on whether to proceed with the proposed Development, it will be necessary to assemble and consider information relative to the uses, design, economics and other aspects of the Development on the Initial Development Parcel. The purpose of this Agreement is to allow the Developer an opportunity to assemble such necessary information, to refine the above referenced development concept, and to negotiate with the Authority concerning the execution of a purchase and development agreement (the "Definitive Contract") which, if executed, will set forth the rights and responsibilities of the Authority and the Developer with respect to the Development on the Initial Development Parcel and will supersede any undertakings of the parties hereunder. Page 27 of 37 2 4907-7181-3799.3 Section 2. Term; Exclusive Rights. This Agreement will take effect and be in force from and after the Effective Date designated by the last in time signature below and will remain in effect until Developer has entered into a Definitive Contract with the Authority, unless earlier terminated as provided in this Agreement, but will expire no later than January 1, 2028 (the “Term”). During the Term of this Agreement, the Authority agrees that it will not (i) discuss the terms of the Development, without the prior written consent of Developer, subject to the requirements of the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, or (ii) solicit, negotiate, or enter into a similar agreement or any other proposals with any party other than the Developer to develop the Authority Property, (iii) encumber the Authority Property in any way without Developer’s consent, or (iv) provide or enter into an agreement for provision of financial assistance to any third party in connection with any proposed development of the Authority Property. The parties acknowledge that the Development is anticipated to utilize approximately one-quarter (1/4) of the usable portion of the Authority Property, taking into account existing power line easements and potential future governmental takings, condemnations, dedications or other encumbrances on the west and south sides of the site. The specific usable area for the initial phase will be determined through discussion and mutual agreement between the Authority and the Developer during the Term. Provided the Developer successfully completes the initial phase of the Development and is not in default under the Definitive Contract, the Developer shall have the exclusive right, subject to the Authority’s consent (which shall not be unreasonably withheld, conditioned or delayed), to negotiate for the acquisition and development of the remaining usable portions of the Authority Property. Section 3. Present Intent of the Parties. It is the intention of the parties that this Agreement document their present understanding and intentions and that the parties will attempt to formulate a mutually satisfactory Definitive Contract if the following conditions can be fulfilled to the satisfaction of the Authority and Developer: A. The Developer demonstrates the feasibility of the Development as refined pursuant to this Agreement; B. The Developer provides such documentation regarding the economic feasibility of the Development as the Authority may wish to receive during the Term of this Agreement; C. The Developer completes all undertakings as required by this Agreement in a satisfactory and timely manner; D. The Development is generally consistent with the proposal submitted to the Authority's Board of Commissioners on March 23, 2026; and E. The satisfaction of such other conditions as are determined to be appropriate by either party. The Definitive Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed will supersede all understandings and obligations of the parties hereunder. Section 4. Development Design. The Developer's concept for the Development on the Authority Property is preliminary in nature and must be reviewed before implementation. The concept as proposed is substantially as described in the recitals hereto and as submitted to the Authority's Board of Commissioners on March 23, 2026, together with any road, utility and or other public improvements determined necessary for the Development. Page 28 of 37 3 4907-7181-3799.3 Section 5. Developer Undertakings. During the Term of this Agreement the Developer shall do the following: A. Continue to refine its site and building plans for the Development. B. Undertake preliminary engineering, soil testing/borings and geotechnical analysis of the Authority Property. For this purpose, the Developer and its contractors shall have the right to enter upon the Authority Property at reasonable times and after notice to the Authority. The Developer shall indemnify, defend and hold the Authority harmless from and against any claims or damage, of whatsoever nature, arising out of the entry onto the Authority Property and shall repair any damage caused to the Authority Property. C. Submit to the Authority a proposed schedule for the undertaking of the Development including phasing and the timing of the closing of each phase. D. Using title information and a survey provided by the Authority, if available, or a title commitment obtained by the Developer, review evidence of title to the Authority Property and provide to the Authority any objections to title. E. Seek to secure a commitment for financing sufficient for construction of the Development. F. Submit to the Authority a project pro forma detailing all costs of the Development and the sources and uses of all funds to be raised to finance the Development, including justification for the amount proposed to be paid by the Developer to acquire the Authority Property. G. Seek to secure tenants for the Development; provided that the Developer has no authority by virtue of this Agreement to lease or otherwise encumber the Authority Property. H. Obtain environmental reports and studies provided by the Authority and such other studies and testing deemed necessary, to determine the acceptability of the environmental condition of the Authority Property and any Additional Property. I. Identify any off-site public improvements expected or required to be completed as part of the Development and identify any on-site public improvements expected or required to be completed as part of the Development, including any centralized park, new roads and storm water ponding. J. Conduct one or more community open house(s) to solicit public input regarding the proposed development concept and such other neighborhood meetings as may reasonably be requested by the Authority. K. Work with the Authority or City to provide information necessary to apply for funding grants from governmental grant sources. L. Obtain any market studies for the Development to assess overall feasibility and to refine the scope of the Development and complete a traffic study to assess the overall traffic impact resulting from the Development. M. Make all required presentations to the City Council of the City, the Authority's Board of Commissioners and the City Planning Commission in connection with approvals of the Development. N. All of the information described above shall be prepared or collected at the sole expense of the Developer. The Developer agrees that it will provide the Authority with quarterly status reports on progress made with respect to its activities under this Agreement. The Developer shall have no Page 29 of 37 4 4907-7181-3799.3 obligation to provide the Authority or City any reports, tests, analyses or any other due diligence it has prepared internally or obtained from any third party except as specifically provided here in. Section 6. Authority Undertakings. During the Term of this Agreement, the Authority will undertake the following: A. Coordinate meetings with the Authority Board, City Council, Planning Commission and the community, as necessary, to refine the Development plans. B. Assist in identifying public improvements necessary to be constructed in connection with the Development, including but not limited to the centralized park area, new roadways and storm water ponding. C. Assist in identifying construction, permit, application, utility and any other fees and the amount of such fees that the Developer may be expected to pay in connection with the Development. D. Assist in identifying the approval process and timeframes for development approvals that may be expected for the Development. E. Assist in identifying the sources of public financial assistance, if any, that may be made available to the Developer in connection with the Development such as tax increment financing, state, local and federal grants and land write down assistance. If any such financial assistance is provided in connection with the Development, the amount, timing and terms of such assistance will be set forth in the Definitive Contract and no commitment is being made in this Agreement that any such assistance will be provided to the Developer. F. Provide to the Developer any title information and any third party reports the Authority has on hand regarding the Authority Property. G. Prepare drafts of the Definitive Contract when it determines appropriate during the Term hereof. H. Provide to the Developer any surveys and environmental reports related to the Authority Property that are in the possession of the Authority. The Authority will, at the Developer's expense, cooperate with the Developer in pursuing any federal or State environmental approvals, permits, program enrollments or determinations requested by the Developer with respect to the Authority Property. I. Analyze information provided by the Developer to determine if the conveyance of the Authority Property for the Developer's proposed purchase price is justified. J. Notwithstanding any provisions or understanding to the contrary, neither the City nor the Authority will exercise its condemnation powers to acquire any additional property or other real property in connection with the Development. K. Cooperate with the Developer, at the Developer's expense, in completing the traffic study as required by Section 5(L). Section 7. Contingencies. The parties acknowledge and agree that proceeding with the Development is subject to a number of contingencies, including, but not limited to, the following: A. The acquisition of all or part of the Authority Property by direct purchase, on such terms and conditions as are acceptable to the Authority in its sole and absolute discretion. Page 30 of 37 5 4907-7181-3799.3 B. The acceptance by the Developer of its environmental and geotechnical assessments and all other environmental and wetland reports and surveys certified to the Developer and its lender, deemed necessary by the Authority and the Developer for all of the property to be encompassed by the Development, which reports and surveys must be satisfactory to the Authority and the Developer. C. The Authority and the Developer having obtained all necessary approvals for the Development from any participating governmental authority including, but not limited to, any necessary watershed district approvals. D. The Developer having obtained such zoning modifications, rezoning, planned unit development approvals, conditional use permits and such other approvals as are necessary to allow the Development to move forward. E. Title to the Authority Property and any Additional Property having been found acceptable to the Developer in its sole discretion. F. The Developer having conducted such soils, well, engineering, hazardous waste, environmental and other testing as it determines necessary. G. The Developer having obtained financing for, at a minimum, the initial phase of the Development acceptable to Developer and satisfactory to the Authority. H. The parties having executed a Definitive Contract and closed on the conveyance of the Authority Property in accordance therewith. Section 8. Definitive Contract Negotiation. During the Term of this Agreement, the Authority and the Developer shall proceed with the negotiation of a Definitive Contract relative to the Development. The decision to enter into a Definitive Contract shall be in the sole discretion of each of the parties. If, prior to the earlier of the end of the Term hereof or the date of execution of the Definitive Contract, either party determines in its sole discretion that it is not in its best interest, for whatever reason, to proceed with the Development or the Definitive Contract, it shall so notify the other party, whereupon this Agreement shall terminate and neither party shall have any rights or obligations to the other or to any third party under or with respect to this Agreement, except as provided in Section 10 regarding Authority costs incurred prior to such termination. If the Developer determines during the Term of this Agreement that undertaking the Development is not financially feasible, it will promptly notify the Authority of such determination, and the parties will terminate this Agreement. Section 9. Effect of Approvals. No approval given by the Authority hereunder or in connection herewith shall be deemed to constitute an approval of the Development for any purpose other than as stated herein and the process outlined in this Agreement shall not be deemed to supersede any concept review, conditional use permit, vacation, subdivision, or other zoning or planning approval process of the Authority or the City relative to the development of real estate. Section 10. Payment of Authority Costs. In consideration of the Authority's covenants and agreements set forth herein, the Developer agrees that it will pay costs incurred by the Authority in connection with the preparation of this Agreement, financial analysis, the negotiation, preparation and implementation of the Definitive Contract in the manner and to the extent provided in this Section 10. The Developer shall deposit $2,500 with the Authority within 3 business days of execution of this Agreement. The Authority shall have the right to draw upon such amounts to pay its costs. Upon request by the Developer, the Authority shall provide an accounting of the use of any funds deposited with the Authority. If the amount on deposit becomes fully depleted or the Authority wishes to incur a cost that would cause the deposit to be fully depleted, the Authority shall have the right to request that the Developer replenish such funds. Upon such request, the Developer shall Page 31 of 37 6 4907-7181-3799.3 remit to the Authority additional funds to be held on deposit and used to pay costs. If the Developer fails to make such a deposit within 3 business days, the Authority may terminate this Agreement. The Authority shall not incur any cost unless the Developer agrees to reimburse such costs. If this Agreement is terminated in accordance with the terms hereof, any sums remaining on deposit with the Authority, after the Authority pays or reimburses itself for costs incurred to the date of termination, shall be returned to the Developer. No other financial obligations shall exist between the parties other than those that may be negotiated and contained in the Definitive Contract. Section 11. Modifications. This Agreement may be modified, and the Term hereof may be extended, only through written amendments hereto signed by both of the parties to this Agreement. Section 12. Termination. This Agreement shall be effective pursuant to Section 2, unless terminated earlier in accordance with Section 8. If for any reason a Definitive Contract has not been entered into by the parties by such date or any mutually approved extension thereof, this Agreement shall be null and void and neither party shall have any liability or obligations to the other, except as provided in Section 10 regarding Authority costs incurred prior to the termination of this Agreement. Section 13. Severability. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of this Agreement. Section 15. Notices. Notice, demand. or other communication from one party to the other shall be deemed effective if sent by United States certified mail or registered mail, postage prepaid, return receipt requested, via electronic mail, return receipt requested, and addressed as follows: AUTHORTIY DEVELOPER Economic Development Authority of Brooklyn Center Attention: Economic Development Manager 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Email: ialexander@brooklyncentermn.gov McNeal Management, Inc. Attention: Tommy McNeal 3548 Zane Ave North Crystal, MN 55422 EMAIL: mcneal.mgmt.inc@gmail.com [Signature Page to Follow] Page 32 of 37 S-1 4907-7181-3799.3 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA By President By Executive Director Page 33 of 37 S-2 4907-7181-3799.3 DEVELOPER: MCNEAL MANAGEMENT, INC. By ___________________________ Tommy McNeal Its ___________________________ Page 34 of 37 A-1 4907-7181-3799.3 EXHIBIT A Authority Property Page 35 of 37 Commissioner _______________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. _____________ APPROVING A PREDEVELOPMENT CONTRACT WITH MCNEAL MANAGEMENT, INC. (FLAME PROJECT) WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic (the “EDA”) has reviewed a proposal from McNeal Management, Inc. (the “Developer”) for the construction and equipping of an approximately 30,000 square foot mixed-use facility consisting of a business center to support entrepreneurship and professional development, an approximate 15,000 square foot indoor event space with a seasonal patio, commercial kitchen, café and catering area, and approximately 6 boutique hotel suites to be located at the property legally described as the property described as Lot 002, Block 001 Northbrook Center 3rd Addn (the “Property”); and WHEREAS, the EDA and the City of Brooklyn Center, Minnesota (the “City”) propose to enter into a Predevelopment Agreement related to the Property, setting out therein the respective rights and responsibilities of the parties; NOW, THEREFORE, BE IT RESOLVED BY the Board of Commissioners (the “Board”) of the Economic Development Authority of Brooklyn Center, Minnesota as follows: 1. Subject to all of the contingencies set forth therein, including, without limitation, a public hearing on the sale of the Property to the Developer in accordance with the requirements of law, the EDA hereby approves the Predevelopment Agreement, in substantially the same form presented to the Board, and hereby authorizes the President and Executive Director to execute, in behalf of the EDA, the Predevelopment Agreement to which the EDA is a party and to carry out, on behalf of the EDA, the EDA’s obligations thereunder with all conditions precedent thereto have been satisfied. 2. The approval hereby given to the Predevelopment Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel of the EDA and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This Resolution shall not constitute an offer and the Predevelopment Agreement shall not be effective until the date of execution thereof as provided herein. In the event of absence or disability of the authorized officers, the Predevelopment Agreement authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly Page 36 of 37 designated acting official or by such other officer or officers of the Board as, in the opinion of legal counsel of the EDA, may act on their behalf. _________________________ _________________________________ Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Page 37 of 37