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Home My WebLink About2006 03-27 EDAP EDA MEETING City of Brooklyn Center March 27, 2006 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 -Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. March 13, 2006 Regular Session 4. Commission Consideration Items a. Report on Purchase Agreement with Eastbrook Properties, LLC Requested Council Action. -Direction on proceeding with termination of agreement. 5. Adjournment EDA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER 1N THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 13, 2006 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session and was called to order at 8:50 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness, Commissioners Kathleen Carmody, Kay Lasman, and Diane Niesen. Commissioner O'Connor was absent and excused. Also present: Acting Executive Director Curt Boganey, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Yungerberg. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Carmody seconded to approve the agenda and consent agenda and the following item was approved: 3a. APPROVAL OF MINUTES 1. February 27, 2006 Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2006-04 TRANSFERRING $300,000 INTO THE EARLE BROWN HERITAGE CENTER CAPITAL FUND Acting Executive Director Curt Boganey stated the EDA has followed this process for several years. He explained that the City Manager has put together a policy to determine approximately the amount of working capital needed in the EBHC Operating Fund. He stated at the end of the year, the City will determine if there is an excess. He stated at the end of 2005, there was and excess of $315,000. He stated the proposed resolution is to transfer $300,000 into the EBHC Capital Fund. 03/13/06 1 DRAFT missioner Carmod seconded to adopt RESOLUTION Commissioner Lasman moved and Com y NO. 2006-04 Transferrin $300,000 into the Earle Brown Heritage Center Capital Fund. g Motion passed unanimously. 5. ADJOURNMENT Commissioner Carmody moved and Commissioner Lasman seconded adjournment of the EDA meeting at 8:53 p.m. Motion passed unanimously. President 03/13/06 2 DR.AFT EDA Agenda Item No. 4 i Cat o Brookl n Center y f y A Millennium Community To: President Kragness and Commissioners Carmody, Lasman, Niesen, and O' Connar From: Michael J. McCauley Executive Director Date: March 22, 2006 Re: Evanson Development The EDA entered into an agreement with Eastbrook Properties, LLC for the sale of property for a residential development. Eastbrook Properties proposed that the EDA acquire excess MnDOT right of way and re-convey it to Eastbrook. MnDOT has sent the attached letter to the EDA advising that the properiy must be acquired prior to April 15 Eastbrook is required to commence construction by April 1, 2006. Given the lack of activity, we are concerned that this may not be met. We are bringing this to the EDA's attention for direction as to how the EDA would like us to proceed. We may let the option to acquire the property from MnDOT pass without sufficient indication that Eastbrook is going to perform. Or we could acquire the property with or without Eastbrook so that the land would be available for productive development, most likely for single family housing. Mr. Le Fevere, as of today, had not received a response to his March 3` letter. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430-2199 (763) 569-3400 City Hall TDD Number (763) 569-3300 FAX (763) 569-3434 FAX (763) 569-3494 www. cityofbrooklyncenter.org Minnesota Department of Transportation 3 Transportation Building �'°F'R"`'� 395 John Ireland Boulevard Saint Paul, Minnesota 55155-1899 March 7, 2006 Certified Mail RRR Mr. Brad Hoffman Community Development Director Brooklyn Center Economic Development Authority 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430-2199 In reply refer to: 2748 (252=110) 903 Parcels 17, 17A, 17B 18 (near 68�' Avenue North adjacent to the west side of T.H. 252 in Brooklyn Center, Minnesota) Re-Conveyance Dear Mr. Hoffman, In accordance with the offer to convey the referenced property in my letter to you dated November 30, 2005, Minnesota Department of Transportation's (Mn/DOT) offerto Brooklyn Center Economic Development Authority is subject to and expressly conditioned upon the acquisition payment of $120,492.00 on or before April 15, 2006. In the event Mn/D07 does not receive such amount on or before April 15, 2006 Mn/DOT withdraws the offer to reconvey this property. If Brooklyn Center Economic Development Authority desires to acquire this property, please submit payment and any questions you may have regarding this transaction to Bonnie McCabe, Transportation Building, 395 John Ireland Boulevard, Mailstop 632, St. Paul, Minnesota 55155 at telephone: 651.296.9744. Sincerely, ��G�Y�� L! Allan E. Pint, Director Office of Land Management An equal opportuniry employer 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 v (612) 337-9300 telephone (G 12) 337-9310 fax H A R T E R E o http://www.kennedy-graven.com CHARLES L. LEFEVERE Attomey az Law Direct Dial (612) 337-9215 Email: clefevere@kennedy-graven.com March 3, 2006 David Evanson Eastbrook Properties, LLC 7224 Camden Avenue North #240 Brooklyn Center, NIN 55430 RE: Purchase agreement with Brooklyn Center; Dear Mr. Evanson: I represent the City of Brooklyn Center as legal counsel. The City and Eastbrook Properties, LLC ("Eastbrook") are parties to a purchase agreement dated April 11, 2005 for the sale of certain property in the City of Brooklyn Center. The purchase agreement imposes certain obligations on Eastbrook as purchaser. Paragraph 3 of the purchase agreement requires the purchaser to secure final plat approval for a single family residential development and commence construction of public improvements by one year from the date of the agrrement, which would be April 1 l, 2006. I understand that preliminary plat approval has been secured. However no action has been taken on final plat approval, the property has not been purchased, and it is no longer reasonably possible that construction can commence by the contract deadline. Meanwhile, the Minnesota Department of Transportation (MnDOT) has expressed frustration with delays and is interested in proceeding to sell the excess right of way to another party if the City does not acquire it in the near future. The City is not interested in attempting to dissuade MnDOT from selling the property un.less Eastbrook is committed to proceeding with the project and takes immediate and concrete steps to move forward. You are advised that, in the even to default by Eastbrook, the City is entitled to retain earnest money, and may either terminate the purchase agreement or seek to have it enforced by the court. 281281v1 CLLBR291-252 Evanson March 3, 2006 Page 2 of 2 Please advise me at your earliest convience if you intend to proceed with the project and, if so, what time table you will follow. I will promptly forward that information to the city staff for their consideration. Thank you for your prompt attention in this matter. Very truly yours, C t ar es ��;e�evere CLL:rec Cc: Brad Hoffman 281281v1 CLL BR291-252