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HomeMy WebLinkAbout2009 09-14 EDAP EDA MEETING City of Brooklyn Center September 14, 2009 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. August 24, 2009 Regular Session 4. Commission Consideration Items a. Resolution Authorizing Execution of a Second Amendment to Real Estate Option A g reement Requested Commission Action: -Motion to adopt resolution. 5. Ad'ournment J EDA Agenda Item No. 3a i 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 AUGUST 24, 2009 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 8:15 p.m. 2. ROLL CALL T' and Mark President im Willson and Commissioners Ka Lasman, Tim Roche, Dan R an, Y Y Yelich. Also present were Executive Director Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, City Attorney Charlie LeFevere, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner R an seconded a roval of the A enda and Y PP g Consent Agenda, and the following item was approved: 3a. APPROVAL OF NIINUTES 1. July 27, 2009 Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2009-14 AUTHORIZING THE DEDICATION OF EASEMENTS ON EDA PROPERTY PERTAINING TO THE BASS LAKE ROAD STREETSCAPE AND REGIONAL TRAIL PROJECT Public Works Director/City Engineer Steve Lillehaug introduced the item, discussed the history, and stated the purpose of the proposed resolution. Commissioner Roche moved and Commissioner Lasman seconded adoption of EDA RESOLUTION NO. 2009-14 Authorizing the Dedication of Easements on EDA Property Pertaining to the Bass Lake Road Streetscape and Regional Trail Project. 08/24/09 -1- DRAFT Motion passed unanimously. 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Roche seconded adjournment of the Economic Development Authority meeting at 8:20 p.m. Motion passed unanimously. 08/24/09 -2- DR.AFT EDA Agenda Item Na. 4a EDA COUNCIL ITEM MEMORANDUM DATE: September 8, 2009 T0: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development SUBJECT: Resolution Authorizing the Execution of a Second Amendment to Real Estate Option Agreement (FBI Regional Field Office) COUNCIL ACTION REQUESTED: Motion to adopt Resalution Authorizing the Execution of a Second Amendment to Real Estate Option Agreement. BACKGROUND: On February 25, 2008, the EDA moved to adopt Resolution No. 2008-02, which authorized the execution of an assignable option purchase agreement with the General Service Administration (GSA) for a parcel of land not to exceed 8.57 acres in area that included the following properties: Tract A, RLS No. 1477 (the former Days Inn Site} and the northern portion of Lot 2, Block l Richardson Park 2 Addition the former Cracker Barrel Site) The option agreement was executed on March 19, 2008 and included an effective period of 15 months (expiration date June 17, 2009). On Apri130, 2009, the GSA publicly announced that Barry Real Estate Company had been selected to be the developer for the design, build, and leasing of the FBI Regional Field Office. On May 20, 2009 a pre-application meeting with the developer's architect, engineer, and general contractor identified site construction (footings and foundation work) to commence in October, 2009 with a project completion date schedule for the of Spring, 2011. On June 8, 2009, the EDA moved to adopt Resolution No. 2009-10, A Resolution Authorizing Execution of a First Amendment to Restate Option Agreement", which acknowledged the assignment from the GSA to Barry Minneapolis, LLC (Barry Real Estate Companies) and extended the term of the option agreement until September 17, 2009. On August 10, 2009, the City Council adopted Resolution No. 2009 -99 which anted final lat a rd p pproval to Richardson 3 Addition, the subdivision which creates the 8.57 acre lot for the FBI Regional Field Office. Additionally, on August 10, 2009, the City Council moved to approve the first reading and set second reading and Public Hearing for September 28, 2009, for an Ordinance Vacating Certain Drainage and Utility Easements with the Plats of Brooklyn Center Industrial Park Plat 2, Richardson Addition, Richardson Park and Richardson Park 2 Addition. On August 24, 2009, the City Council accepted the Planning Commission recommendations and moved to grant site plan approval to Barry Minneapolis, LLC. to facilitate the construction of a 145,317 sq.ft. class A office building, a 28,255 sq.ft. annex building, and a three story covered parking ramp with the necessary security measures far the FBI's Regional Field Office. On September 3, 2009, the City was informed that Hennepin County had completed their plat review and the final plat of Richardson Park 3 Addition was ready for execution and recording Real Estate O tio n A reement: P g The Second Amendment to the Real Estate Option Agreement provides for the extension of the Term of Option to October 16, 2009. The additional time will allow the Cit to roceed with the Y P vacation of old draina e and utilit easements and to resolve title issues associated with old g y development/subdivision agreements. It also allows the developer additional time to work out details associated with the financing of this project. Once the Option Agreement is executed, the developer, Barry Minneapolis LLC., has up to 120 days to close on the property. The developer has selected Kraus Anderson as the general contractor for this project and has indicated that the target date for occupancy in 2011, can be met accomplished by either starting this fall or next spring. Budget Issues: There are no budget issues with this action. I Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF A SECOND AMENDMENT TO REAL ESTATE OPTION AGREEMENT A. WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "Authorit}�') and the United States of America, acting by and through the U.S. General Services Administration (the "GSA") have heretofore entered into a Real Estate Option Agreement (the "Option AgreemenY') providing for the Authority's conveyance of certain real property to GSA for the purpose of constructing office space containing approximately 162,000 square feet of rentable space with a future onsite parking facility structure having a minimum of 200 spaces (the "ProjecY') within the City of Brooklyn Center, Minnesota (the "City"). B• WHEREAS, the GSA has assigned its right and interest in the Option Agreement to Barry Minneapolis, LLC (the "Developer"). C. WHEREAS, the Authority and the Developer entered into a First Amendment to Real Estate Option Agreement dated effective as of June 19, 2009 to extend the term of the option granted in the Option Agreement. D. WHEREAS, the Authority and the Developer desire to amend the Option Agreement pursuant to a Second Amendment to Real Estate Option Agreement (the "Amendment") to further extend the term of the option granted in the Option Agreement. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota, as follows: L The Board of Commissioners hereby approves the Amendment in substantially the form submitted, and the Executive Director is hereby authorized and directed to execute the Amendment on behalf of the Authority. 2. The approval hereby given to the Amendment 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 the Authority officials authorized by this resolution to execute the Amendment. The execution of the Amendment by the appropriate officer or officers of the Authority shall be conclusive evidence of the approval of the Amendment in accordance with the terms hereof. Seutember 14. 2009 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. STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER I, the undersigned, being the duly qualified and acting Secretary of the Economic Development Authority of the City of Brooklyn Center, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the Board of Commissioners of the City held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing Execution of a Second Amendment to Real Estate Option Agreement. WITNESS my hand as such Secretary of the Board of Commissioners of the Economic Development Authority of the City of Brooklyn Center, Minnesota this day of 2009. Secretary SECOND AMENDMENT TO REAL ESTATE OPTION AGREEMENT This Second Amendment to Real Estate Option Agreement (the "Second Amendment") is entered into effective as of the day of September, 2009, by and between the ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, a public body corporate and politic organized and existing under the laws of the State of Minnesota ("Optionor"), whose address is 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, and BARRY MINNEAPOLIS, LLC, a Georgia limited liability company ("Optionee"), whose address is c/o Barry Real Estate Companies, Inc., 30 Ivan Allen Jr. Boulevard, Suite 900, Atlanta, Georgia 30308 ("Optionee"). WHEREAS, Optionor and the United States of America, acting by and through the U.S. General Services Administration ("GSA"), entered into that certain Real Estate Option Agreement dated March 19, 2008 (as amended by the First Amendment (defined below), the "Option Agreement"), for the purchase and sale of certain real property being formerly known as the Days Inn Site and the Cracker Barrel site (the "Property"); WHEREAS, pursuant to that certain Assignment of Option Agreement, effective as of June 19, 2Q09, the GSA assigned all of its rights and obligations under the Option Agreement to Optionee, as the Developer of the Property, and Optionee agreed to assume and perform all of the GSA's rights and obligations under the Option Agreement; WHEREAS, Optionee and Optionor entered into that certain First Amendment to Real Estate Option Agreement ("First Amendment") to extend the Expiration Date of the Option term to September 17, 2009; WHEREAS, Optionee desires and Optionor agrees to further extend the Expiration Date of the Option term until October 16, 2009; WHEREAS, Optionor and Optionee hereby agree to amend Section 2 of the Option Agreement for the purpose of modifying the term of the option; NOW THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Option Agreement is hereby amended and the parties hereto do hereby agree as follows: 1. Term of Ovtion. The first sentence of Section 2 of the Option Agreement, as previously amended by the First Amendment, shall be deleted in its entirety and the following substituted in lieu thereof "2. Term of Option. Optionee may exercise the Option at any time between March 19, 2008 and October 16, 2009 (the "Expiration Date'). 1 zaoi i a�i 2. Miscellaneous. The recitals referenced hereinabove are incorporated into the body of this Second Amendment. All capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Option Agreement. The headings used herein are provided for convenience only and are not to be considered in construing this Second Amendment. This Second Amendment shall not be valid and binding on Optionor and Optionee unless and until it has been completely executed by, and delivered to, both parties. The parties may exchange an executed document by electronically mailed transmission, which shall have the same force and effect as an original. EXCEPT AS expressly amended and modified hereby, the Option Agreement shall otherwise remain in full force and effect, the parties hereto hereby ratifying and confirming the same. To the extent of any inconsistency between the Option Agreement and this Second Amendment, the terms of this Second Amendment shall control. IN WITNESS WHEREOF, the undersigned parties have duly executed this Second Amendment under seal as of the day and year first above written. OPTIONOR: Economic Development Authority of Brooklyn Center, a public body corporate and politic organized under the laws of the State of Minnesota By: Name: Title: OPTIONEE: Barry Minneapolis, LLC, a Georgia limited liability company By: Name: Christian B. Schoen Title: Chief Executive Officer 2 2401118v1 I