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HomeMy WebLinkAbout2005 03-28 EDAP EDA MEETING City of Brooklyn Center March 28, 2005 AGENDA L 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 2. March 14, 2005 Regular Session b. Resolution Selecting the No Waiver Option for Statutory Tort Liability -Requested Commission Action: Motion to adopt resolution. 4. Adjournment f EDA Agenda Item No. 3a Cite of BROOKLYN CENTER MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Sharon Knutson, City Clerk DATE: March 15, 2005 SUBJECT: February 14, 2005, EDA Minutes Attached are the minutes of the February 14, 2005, EDA meeting. At its March 14, 2005, meeting, the minutes were tabled, as Commissioner O'Connor indicated she had corrections to the minutes. President Kragness requested Commissioner O'Connor to submit changes to the Clerk; however, after the meeting I asked Commissioner O'Connor for the corrections to be included in the next agenda packet, but those changes have not been submitted for inclusion with the materials. Attachments 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 s 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 ice Agreement with Flik y s .that Mr. Boganey had been negotiating a Food Sery g 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 ORAMERICA 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 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 MARCH 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 11:20 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, Community Development Director Brad Hoffman, Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and City Clerk Sharon Knutson. 3. APPROVAL OF AGENDA AND CONSENT AGENDA There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to approve the agenda and consent agenda. Motion passed unanimously. Commissioner O'Connor stated she had corrections to the minutes. There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to reconsider the motion on approval of the agenda and consent agenda. Motion passed unanimously. There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to approve the agenda and consent agenda with the removal of the February 14, 2005, Regular Session minutes. Motion passed unanimously. 3a. APPROVAL OF MINUTES Commissioner O'Connor said she had corrections to Page 4 of the February 14, 2005, Regular Session minutes. President Kragness requested that Commissioner O'Connor provide the changes to the City Clerk. There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to table the February 14, 2005, Regular Session minutes. Motion passed unanimously. 03/14/05 -1- DRAFT i 4. PUBLIC HEARING 4a. 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 There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to open the Public Hearing. Motion passed unanimously. No one wished to address the Commission. There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to continue the Public Hearing and table the Resolution Authorizing the Acquisition of Excess Mn/DOT Right Of Way Property and Sale of Property to Eastbrook Properties, LLC, to the April 11, 2005, Economic Development Authority meeting. Motion passed unanimously. 5. ADJOURNMENT There was a motion by Commissioner Lasman, seconded by Commissioner Carmody to adjourn the meeting at 11:22 p.m. Motion passed unanimously. President 03/14/05 -2- DRAFT EDA Agenda Item No. 3b Memorandum Date: 18 March 2005 To: Michael McCauley City Manager From: Daniel Jordet Director of Fiscal Support Services Re: Statutory Tort Liability Limits Each year the Economic Development Authority must choose whether to waive the statutory limitations on tort liability. If these limitations are waived, additional insurance should be purchased. To this point, the Economic Development Authority has chosen to not waive the statutory limitations on tort liability. This has saved the EDA additional tort liability premium payments. Staff requests consideration of the attached resolution by the Economic Development Authority at the next regular meeting. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION SELECTING THE NO WAIVER OPTION FOR STATUTORY TORT LIABILITY WHEREAS, the Economic Development Authority (EDA) of the City of Brooklyn Center has an option to waive its protection under the tort liability limitation contained in Minnesota Statutes 466.04; and WHEREAS, the statutory tort limit is $300,000 per individual and an aggregate of $1,000,000 per incident; and WHEREAS, the EDA has opted not to waive its rights to limited tort liability in past years and is required to make a declaration of its intention every year. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the City does not waive the monetary limits on municipal limit tort liability established by Minnesota Statues 466.02. March 28. 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. LEAGUE OF MINNESOTA CITIES INSURANCE TRUST LIABILITY COVERAGE WAIVER FORM Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more than $300,000.on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,000,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage. El If the city waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $1,000,000. on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $1,000,000., regardless of the number of claimants. If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. This decision must be made by the city council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. For further information, contact LMCIT. You may also wish to discuss these issues with your city attorney. accepts liability coverage limits of from the League of Minnesota Cities Insurance Trust (LMCIT). Check one: The city DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of city council meeting Signature Position Return this completed form to LMCIT, 145 University A ve. W., St. Paul, MN. 55103 -2044 T AXOT r 11 1 MAN /D 1 1 InzN Pave 1 of 1