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HomeMy WebLinkAbout2005 04-11 EDAP EDA MEETING City of Brooklyn Center April 11, 2005 AGENDA 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. March 28, 2005 Regular Session 4. Public Hearings a. Purchase and Development Agreement with Volunteers of America for the Sale and Development of Land -Requested Commission Action: Motion to open the Public Hearing. —Take public input. Motion to close Public Hearing. Motion to continue to June 13, 2005. b. Authorizing Acquisition of Excess Mn/DOT Right Of Way Property and Sale Thereof to Eastbrook Properties, LLC This item was tabled from the March 14, 2005, EDA meeting. 1. Resolution Authorizing the Acquisition of Excess Mn/DOT Right of Way Property and Sale of Property to Eastbrook Properties, LLC -Requested Commission Action: Motion to re -open the Public Hearing. —Take public input. Motion to close Public Hearing. Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a 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 28, 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 10:02 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness and Commissioners Kathleen Carmody, Lasman Diane Niesen and Y� Y Mary O'Connor. Also present were Executive Director Michael McCauley, Assistant City Manager /Director of Operations Curt Boganey, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. 3. APPROVAL OF AGENDA AND CONSENT AGENDA There was a motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the consent agenda. Commissioner O'Connor informed that she had a correction to the February 14, 2005, minutes. President Kragness discussed that she was to get her corrections to the City Clerk to make the amendments. Commissioner O'Connor informed that she was not aware of that and thought she would be able to make the correction at this time. Commissioner O'Connor asked that page 4, third paragraph, read the following: There was discussion regarding the need for senior affordable housing in Brooklyn Center, noting the Maxfield Research Senior Housing Report. The majority discussed that they are in favor of this senior housing project and support it. There was a second motion by Commissioner Carmody, seconded by Commissioner Lasman to approve the amended consent agenda with the amendment to the February 14, 2005, minutes. Motion passed unanimously. 03/28/05 -1- DRAFT 3a. APPROVAL OF MINUTES There was a motion by Commissioner Carmody, seconded by Commissioner Lasman to approve the amended February 14, 2005, Regular Session and March 14, 2005, Regular Session minutes. Motion passed unanimously. Y 3b. RESOLUTION SELECTING THE NO WAIVER OPTION FOR STATUTORY TORT LIABILITY RESOLUTION NO. 2005 -06 Commissioner Carmody introduced the following resolution and moved its adoption: RESOLUTION SELECTING THE NO WAIVER OPTION FOR STATUTORY TORT LIABILITY The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Motion passed unanimously. 4. ADJOURNMENT A motion by Commissioner Carmody, seconded by Commissioner Lasman to adjourn the meeting at 10:04 p.m. Motion passed unanimously. President I 03/28/05 -2- DRAFT EDA Agenda Item No. 4a MEMORANDUM TO: Michael McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: April 7, 2005 SUBJECT: Volunteers of America Senior Housing A public hearing has been scheduled for the EDA to consider a development agreement and the sale of land to the Volunteers of America to develop an affordable senior housing project in Brooklyn Center. A major component of the project is the participation of Hennepin County in the financing of the project. At this time, Hennepin County has not completed their due diligence on this project so we are unable to fully and accurately report to the EDA all of the terms and conditions for EDA consideration. It is our recommendation that the EDA open the public hearing and carry it over to June 13 for further consideration. r i EDA Agenda Item No. 4b i MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialist DATE: April 6, 2005 SUBJECT: Resolution Authorizing the Acquisition of Excess Mn/DOT Right of Way Property and Sale of Property to Eastbrook Properties, LLC This item addresses the sale of excess Mn/DOT right of way to Eastbrook Properties, LLC. The property is right of way land left from the construction of Hwy 252 and is located west of 252 between 69 and 68 Avenues North. A brief summary of EDA actions to date is shown by the following: February 14, 2005 EDA approved Resolution 2005 -03 which authorized the EDA to acquire the Mn/DOT property and to conduct a public hearing on the sale of the property to Eastbrook Properties, LLC. March 14, 2005 the EDA opened the public hearing on the sale of land to Eastbrook Properties, LLC. The EDA tabled the item and continued the public hearing to the April 11, 2005 EDA meeting to allow additional time for staff and the developer to finalize the terms of the purchase agreement for the property. The sale of MnDOT land to Eastbrook Properties, LLC is a "pass through" of land from MnDOT to the EDA to Eastbrook, since MnDOT cannot legally sell the land directly to Eastbrook. The MnDOT property is 69,070 sq. ft. (1.59 acres) with a price established by MnDOT at $120,900. The MnDOT land is part of a proposed new single family development called Eastbrook Estates. The MnDOT land effects portions of four to five lots in the proposed Eastbrook Estates subdivision. A sketch plan of the Eastbrook Estates 2 nd Addition Plat is included for information. Before a public agency such as the EDA can sell land to a private developer, it must hold a public hearing on the terms and conditions of such sale. The terms and conditions of this sale are set forth in the purchase agreement included with this memorandum. A summary of the main provisions of the purchase agreement is shown by the following: The sale price of the property established by MnDOT is $120,900. The property must be improved with a single family residential development approved by the City Council of the City of Brooklyn Center and the seller (EDA). In addition to the purchase price, the seller is to pay the EDA all costs incurred by the EDA in the acquisition and sale of the property. The buyer acknowledges that the subdivision of land and construction of a residential development within the City of Brooklyn Center is subject to regulation by the Brooklyn Center Zoning Ordinance and the Brooklyn Center building code. The public hearing on the sale of the property to Eastbrook Estates, LLC is continued from the March 14, 2005 Meeting. Upon conclusion of the public hearing, it is recommended the City Council approve the Resolution Authorizing the Acquisition and Sale of Excess Mn/DOT Right of Way Property and Sale of Property to Eastbrook Properties, LLC v I 5 i I .�•,•II�.. ir e a 0 1 I I I�..:.�"' i s I J n I qT p N CI I T +jy� i'�) t i� I� i i ass CCC���111 I Q 1 i i ti I C I I I I i w tL i Llt' �-.0 II. QI In J I 1 I I 1 1 .�''7 .a I r to r I I 1 J i l l PURCHASE AGREEMENT Brooklyn Center, Minnesota 2005 Received of Eastbrook Properties, LLC, a Minnesota limited liability company "Buyer the sum of $5,000 as earnest money deposit for the purchase of property in the City of Brooklyn Center, Minnesota, in the County of Hennepin, State of Minnesota, and legally described on Attachment One, which is attached hereto and hereby made a part hereof (the 'Property"), all of which property the Brooklyn Center Economic Development Authority (hereinafter referred to as the "Seller has this day agreed to sell to Buyer, for the sum of $120,900, plus costs and expenses set forth below, which sum shall be payable as follows: (a) $5,000 the receipt of which is hereby acknowledged, as earnest money deposit, and (b) $115,900 principal balance due upon closing, plus costs and expenses set forth below. The contract is subject to the following conditions: 1. The Seller agrees to convey marketable title to the Property by Quit Claim Deed, subject to the following exceptions: a. Building and zoning laws, ordinances, and State and Federal regulations. b. Reservation of any minerals or mineral rights to the State of Minnesota. C. Utility and drainage easements of record. d. Restrictions relating to use or development of the Property without effective forfeiture provisions, other than as specified in paragraph 5. 2. Buyer agrees that if Buyer does not purchase the Property in accordance with this agreement, the Seller shall have the right to retain the aforementioned earnest money deposit as liquidated damages. CLL- 258440x2 BR305 -77 3. The Property must be improved with a single family residential development approved by the City Council of the City of Brooklyn Center and the Seller. Buyer will secure final plat approval including all of the Property, for a residential development and commence construction of public improvements by one year from the date of this Agreement. 4. Buyer may not assign this agreement or any interest herein within one year of the date hereof without prior written approval of the Seller. 5. Buyer agrees that if there occurs any breach in the terms of this agreement as described in paragraph 3, then the title to and possession of the Property may at the Seller's option revest in and revert to the Seller, and the Seller shall then have the absolute right to sell the Property and to refund to the Buyer amounts, if any, remaining after the Seller reimburses itself for all its costs, expenses and damages incurred as a result of such breach. Any revestiture will be subject to any outstanding mortgage placed on the Property for the purpose of constructing improvements. Upon satisfaction by Buyer of its obligations hereunder, including specifically its obligations to construct the improvements described in paragraph 3, the Seller will provide the Buyer with a certificate in recordable form certifying that such obligations have been fulfilled. 6. Taxes and installments of special assessments payable on the Property, if any, and taxes and installments of special assessments payable in 2006 and thereafter are the responsibility of Buyer. The Seller makes no representation or warranty whatsoever regarding the amounts of taxes or special assessments that may be levied against the Property subsequent to the date of purchase by the Buyer. At closing, Seller shall pay to Buyer, in addition to the purchase price, all costs incurred by Seller in the acquisition and sale of the Property including, but not limited to, all filing and recording fees and legal fees, it being the intent of the parties that the Seller should be fully reimbursed and made whole for all costs and expenses incurred by Seller in the acquisition of title to the Property from the State of Minnesota and transfer to Buyer. 7. The Buyer shall be allowed thirty days after the date of this Agreement to secure such information as is deemed necessary by Buyer to determine the state of title, to examine said title information and to make any objections thereto. Said objections shall be made in writing or shall be deemed to be waived. If any objections are so made the Seller shall be allowed 120 days to make such title marketable. Pending correction of title the payments hereunder required shall be postponed, but upon correction of title and within ten days after written notice to the Buyer, the parties shall perform this agreement according to its terms. Title Insurance for the subject premises may be secured by Buyer at Buyer's expense. 8. If said title is not marketable and is not made so within 120 days from the date of written objections thereto as above provided, this agreement shall be null and void, and no party to the agreement shall be liable for damages hereunder. The earnest money herewith paid by the Buyer shall be refunded. If the title to the Property is found marketable or is so made CLL- 258440v2 2 BR305 -77 within said time, and said Buyer shall default in any of the agreements and continue in default for a period of ten days, then and in that case the Seller may terminate this contract and on such termination all the payments made upon this contract shall be retained by the Seller as liquidated damages, time being of the essence hereof. This provision shall not deprive the parties of the right of enforcing the specific performance of this contract provided such contract shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such right of action shall arise. 9. The Buyer acknowledges that subdivision of land and construction of a residential development within with the City of Brooklyn Center is subject to regulation by the Brooklyn Center Zoning Ordinance and the Brooklyn Center Building Code. It shall be the Buyer's responsibility to seek and secure such approvals or permits as may be required by these ordinances or codes. 10. Closing. The closing shall take place within 90 days after the City of Brooklyn Center has approved Buyer's plat or the last date the Minnesota Department of Transportation is willing to transfer title to the Property to Seller, whichever occurs first. The Buyer agrees to make final payment of the balance of the purchase price to the Seller at the time of the closing. 11. It is the intent of the parties that this Agreement be recorded against the title to the Property with the Hennepin County Recorder. If for any reason this Agreement cannot be recorded, the parties agree to execute such other or additional documents or take such steps as may be needed to effect the recording hereof. The Buyer's obligations under this Agreement shall run with the land of the Property and bind Buyer's heirs, successors and assigns until the certificate described in Section 5 of this Agreement is executed and delivered by the Seller. 12. Buyer acknowledges for Seller's benefit that Buyer has made and will make its own inspection, investigation, review and examination of the Property and the soils thereon, and all other aspects of the Property, including but not limited to a soils report and hazardous substance audit, and agrees that it is acquiring the Property in its as-is condition without any representation or warranty of any kind, express or implied, except as otherwise herein expressly provided, by Seller or Seller's representatives, agents or affiliates, including without limitation any representation as to hazardous or toxic substances, soil condition, or the availability or adequacy of utilities. Seller shall give Buyer access to the Property for purposes of conducting such inspection, investigation and examination. Buyer shall indemnify Seller from any damages resulting from Buyer's activities on the Property and will restore the same to substantially the same condition as existed prior to such activities thereon by Buyer. 13. Seller warrants that it is not aware of any wells or septic systems on the Property. CLL- 258440v2 3 BR305 -77 BROOKLYN CENTER EASTBROOK PROPERTIES, LLC ECONOMIC DEVELOPMENT AUTHORITY By: By: Its President And by: Its Executive Director STATE OF MINNESOTA ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2005, by and the President and Executive Director, respectively, of the Brooklyn Center Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority. Notary Public STATE OF MINNESOTA ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2005, by the of Eastbrook Properties, LLC, on behalf of the limited liability company. Notary Public CLL- 258440v2 4 BR305 -77 ATTACHMENT ONE DESCRIPTION OF THE PROPERTY Parcels 17, 17A, 17B and 18, C.S. 2748 (252 =110) 903 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 forl 12.35 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. CLL.258440v2 BR305 -77 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 f Brooklyn r ty o yn 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 Agreement and WHEREAS, a public hearing was conducted on March 14, 2005, and continued to April 11, 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. Argil 11.2005 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.