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.
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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
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