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HomeMy WebLinkAbout2005 03-14 EDAP EDA MEETING City of Brooklyn Center March 14, 2005 AGENDA REVISED 03/11/05 1. Call to Order 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. February 14, 2005 Regular Session 4. Public Hearing a. Authorizing Acquisition of Excess Mn/DOT Right Of Way Property and Sale Thereof to Eastbrook Properties, LLC 1. Resolution Authorizing the Acquisition of Excess Mn/DOT Right of Way Property and Sale of Property to Eastbrook Properties, LLC -Requested Council Action: Motion to open the Public Hearing. —Take public input. Motion to continue Public Hearing and table resolution until April 11, 2005. 5. Adjournment 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 FEBRUARY 14, 2005 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 8:25 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness and Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Executive Director Michael McCauley, Assistant City Manager /Director of Operations Curt Boganey, Public Works Director /City Engineer Todd Blomstrom, Community Development Director Brad Hoffman, City Attorney Charlie LeFevere, and City Clerk Sharon Knutson. 3. APPROVAL OF AGENDA AND CONSENT AGENDA There was a motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES There was a motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the January 24, 2005, Regular Session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION AUTHORIZING THE ACQUISITION OF EXCESS MN/DOT RIGHT OF WAY PROPERTY AND CALLING A PUBLIC HEARING ON THE SALE THEREOF TO EASTBROOK PROPERTIES, LLC Executive Director Michael McCauley said this Resolution sets the Public Hearing on the sale of the excess Mn/DOT right of way property for March 14, 2005. He noted there are two interested parties in the audience if the EDA wished for those persons to speak this evening rather than waiting for the March 14, Public Hearing. 02/14/05 -1- DRAFT Mr. Evanson, Eastbrook Properties, LLC, addressed the EDA and presented a diagram of the proposed development site, which is located south of 69th Avenue and west of T.H. 252. He discussed that Mn/DOT had made several revisions to the plan, with a net loss of four lots to the development. He said the reduction in area is land that Mn/DOT is not willing to sell. He said these are remnant parcels from the T.H. 252 construction, and he believes it will be a good addition to the City. RESOLUTION NO. 2005-03 Commissioner Niesen introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ACQUISITION OF EXCESS MN /DOT RIGHT OF WAY PROPERTY AND CALLING A PUBLIC HEARING ON THE SALE THEREOF TO EASTBROOK PROPERTIES, LLC The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Motion passed unanimously. 4b. RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) TO ENTER INTO AN AGREEMENT WITH FLIK INTERNATIONAL CORP FOR FOOD SERVICE MANAGEMENT AT THE EARLE BROWN HERITAGE CENTER Mr. McCauley said that Mr. Boganey had been negotiating a Fo od Service Agreement with Flik International Corp. He said the new agreement involves an investment by Flik Corp for catering facility improvements at the Earle Brown Heritage Center of $60,000. He also noted that the new agreement has a Cost of Business penalty revision and a revision to the definition of Catering Cost of Business. He said it is advantageous to move forward and believes the agreement results in a fair and equitable result for all parties. The EDA discussed the $60,000 contribution by Flik to the Heritage Center. Mr. McCauley indicated that money could be used to purchase new equipment, but the primary objective is to make improvements that add to the productivity and /or profitability of the catering service. There was discussion regarding catering sales and catering cost, noting that as sales rise, catering costs rise. The EDA discussed continuing an agreement with Flik Corp for food service and whether or not it would be advantageous to go through a process of reviewing proposals for food service. The EDA discussed that if the Heritage Center were to change caterers, sales may drop if a new caterer were to replace Flik. The EDA expressed satisfaction with Flik Corp for food service management. RESOLUTION NO. 2005 -04 Commissioner Lasman introduced the following resolution and moved its adoption: 02/14/05 -2- DRAFT RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) TO ENTER INTO AN AGREEMENT WITH FLIK INTERNATIONAL CORP FOR FOOD SERVICE MANAGEMENT AT THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Niesen. Motion passed unanimously. 4c. RESOLUTION SUPPORTING HENNEPIN COUNTY CONSIDERATION OF HOUSING BONDS FOR SENIOR HOUSING PROJECT IN BROOKLYN CENTER AND CONTINUED DEVELOPMENT OF A POTENTIAL DEVELOPMENT AGREEMENT WITH VOLUNTEERS OFAMERICA Mr. McCauley said that he had talked with Commissioner Opat regarding developing schematics for a senior housing project in Brooklyn Center. He displayed and reviewed a comparison of City EDA/Volunteers of America (VOA) and Hennepin County HRA scenarios, noting the differences between the City EDA doing this project without the County HRA assistance. Frank Dunbar, developer for VOA, displayed a timeline and discussed it and the activity that would occur. He said the VOA would buy the land through a development agreement with Brooklyn Center EDA and Hennepin County HRA would own the building and enter into a land lease agreement with VOA. At the end of the 30 -year lease, the land lease expires and the VOA would own the building. Jim Bettendorf, representative for Volunteers of America, addressed the EDA and said that Volunteers of America is a nonprofit organization. He stated that this project would meet the mission of VOA that provides low- income and subsidized housing. There was discussion regarding the involvement of Hennepin County HRA and whether anything had been done like this before. Mr. McCauley responded that he believed this was the first project of this type. He explained that the Hennepin County HRA involvement would allow the rents to be lower and the project to be completed sooner and it is more sustainable. Commissioner O'Connor said this project would close three or four businesses, and she is opposed to taking out businesses for this project. She said there is vacant land available in the City, noting the northwest corner of Bass Lake Road and Xerxes Avenue North. She discussed that maybe the zoning could be changed on the vacant land so this housing project could be relocated to vacant property. She indicated she would be voting against the senior housing project at this location. Mayor Kragness responded that the vacant land located on the northwest corner of Bass Lake Road and Xerxes Avenue North is privately owned by Jerry's Enterprises. There was discussion regarding the term of lease and restriction on the land. Mr. McCauley explained that the restriction on the land would be in effect as long as the EDA had control. There was discussion regarding property taxes and whether this senior housing project would generate 02/14/05 -3- DRAFT more property taxes that what is currently on the site. Mr. McCauley explained that it is neutral in terms of what the City is getting now, and the primary benefit is that we are taking an area quite challenged and putting in housing. He explained that the market study supports this type of senior housing, however, it isn't going to happen without assistance from the City. Mr. Dunbar discussed the housing project, noting that it is a three story, 60 -unit residence. He said generally the people who move into a senior housing project are from the community. He said this type of project allows for elderly residents to move from their single family home and continue to live independently. He further explained that the building has underground parking and that full time management services are available. There was discussion regarding the need for senior affordable housing in Brooklyn Center, noting the Maxfield Research Senior Housing Report. The EDA discussed that they are in favor of this senior housing project and support it. Mr. McCauley explained that the Resolution would allow the EDA to continue discussions with Volunteers of America to negotiate a proposed development agreement to construct an affordable senior housing project for consideration by the EDA. The Resolution also requests that Hennepin County consider participation in the financing of the Volunteers of America's proposed affordable senior housing project within Brooklyn Center through the issuance of general obligation bonds on the part of the Hennepin County HRA. RESOLUTION NO. 2005 -05 Commissioner Carmody introduced the following resolution and moved its adoption: RESOLUTION SUPPORTING HENNEPIN COUNTY CONSIDERATION OF HOUSING BONDS FOR SENIOR HOUSING PROJECT IN BROOKLYN CENTER AND CONTINUED DEVELOPMENT OF A POTENTIAL DEVELOPMENT AGREEMENT WITH VOLUNTEERS OF AMERICA The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Voting in favor: President Kragness, Commissioner Carmody, Commissioner Lasman, Commissioner Niesen. Voting against: Commissioner O'Connor. Motion passed. 5. ADJOURNMENT A motion by Commissioner Carmody, seconded by Commissioner Lasman to adjourn the meeting at 9:40 p.m. Motion passed unanimously. President 02/14/05 -4- DRAFT EDA Agenda Item No. 4a MEMORANDUM TO: Michael J. McCauley, City Manager l FROM: Tom Bublitz, Community Development Specialist DATE: March 10, 2005 SUBJECT: Public Hearing Regarding Sale of Mn/DOT Right of Way Property to Eastbrook Properties, LLC Resolution Authorizing the Acquisition of Excess Mn/DOT Right of Way Property and Sale of Property to Eastbrook Properties, LLC The Brooklyn Center Economic Development Authority (EDA) approved EDA Resolution No. 2005 -03 at its February 14, 2005, meeting. The resolution authorized the EDA to conduct a Public Hearing on the sale of excess Mn/DOT property to Eastbrook Properties, LLC for the purpose of constructing single family residential homes. The location of the excess Mn/DOT right of way is south of 69th Avenue and west of T.H. 252. Mn/DOT cannot sell excess right of way land directly to individuals and, therefore, it must procedurally be sold to a local public agency and then to an individual developer. Sale of the Mn/DOT right of way property to Eastbrook Properties, LLC will be accomplished through a formal purchase and development agreement which establishes the terms and conditions of the sale of the property to the developer. Negotiations to finalize the purchase and development agreement have not been completed with Eastbrook Properties, LLC, and it is anticipated a formal purchase and development agreement will be ready for EDA review and consideration at its April 11, 2005, EDA meeting. State Statute requires a Public Hearing on the terms and conditions of sale prior to the conveyance of property by the EDA. EDA Resolution No. 2005 -03 set a public hearing date for the March 14, 2005, EDA meeting on the terms and conditions of the sale of the Mn/DOT right of way property to Eastbrook Properties, LLC. Staff is recommending that the EDA open the Public Hearing at its March 14, 2005, meeting and continue the Public Hearing to its April 11, 2005, meeting. Consideration of Resolution Authorizing the Acquisition of Excess Mn/DOT Right of Way Property and Sale of Property to Eastbrook Properties, LLC should also be tabled to the April 11, 2005, EDA meeting upon conclusion of the Public Hearing. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OF EXCESS MN/DOT RIGHT OF WAY PROPERTY AND SALE OF PROPERTY TO EASTBROOK PROPERTIES, LLC WHEREAS, the Economic Development Authority "EDA has been advised by the Minnesota Department of Transportation that it is willing to convey certain excess right of way, legally described as follows: That part of Tracts A and B described below: Tract A. That part of Lot 24, Auditor's Subdivision Number 310, shown as Parcel 17 on Minnesota Department of Transportation Right of Way Plat No. 27 -20 as the same is on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota; Tract B. Lots 25, 26 and the south 112 feet of Lot 27, Auditor's Subdivision Number 310, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota; which lies westerly of Line 1 described below: Line 1. Commencing at Right of Way Boundary Corner B35 as shown on said Plat No. 27- 20; thence westerly on an azimuth of 269 degrees 35 minutes 20 seconds along the boundary of said plat for 195.49 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 354 degrees 58 minutes 30 seconds for 268.52 feet; thence on an azimuth of 89 degrees 35 minutes 20 seconds for 129.14 feet; thence on an azimuth of 355 degrees 02 minutes 49 seconds for 112.35 feet to Right of Way Boundary Corner B40 as shown on said Plat No. 27 -20 and there terminating; Subject to the following restriction: No access shall be permitted to Trunk Highway No. 110, renumbered 252, from the lands herein conveyed. (the "Property") to the EDA; and EDA RESOLUTION NO. WHEREAS, the EDA has determined that such Property is under utilized, is not being put to any productive use and is in danger of being or becoming a blight or blighting influence on the City of Brooklyn Center and that acquisition of the Property and development thereof with single family residential housing would be in the best interest of the City and its people and would further the general plan for economic development of the City; and WHEREAS, the EDA has received a proposal for the purchase of the Property from Eastbrook Properties, LLC (the "Purchase and Development Agreement and WHEREAS, a public hearing was conducted on March 14, 2005, in accordance with Minnesota Statutes, Section 469.105; WHEREAS, the EDA has determined that sale of the Property on the terms and conditions proposed is advisable, in the public interest, and will serve the ends of Minnesota Statutes, Sections 469.090 to 469.108. NOW THEREFORE, BE IT RESOLVED, by the Brooklyn Center Economic Development Authority, as follows: 1. The Executive Director is authorized and directed to take such steps as are necessary to acquire title to the Property from the Minnesota Department of Transportation. 2. The President and Executive Director are authorized and directed to execute the Purchase and Development Agreement and take all steps necessary to effect conveyance of the Property in accordance therewith. March 14. 2005 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.