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HomeMy WebLinkAbout2005 05-09 EDAP EDA MEETING City of Brooklyn Center May 9, 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. April 11, 2005 Regular Session 4. Commission Consideration Items a. Resolution Approving Environmental Response Fund Grant Agreement Between the Brooklyn Center Economic Development Authority (EDA) and Hennepin County Department of Environmental Services. -Requested Commission Action: Motion to adopt resolution. b. Brooklyn Hotel Partners, LLC -Requested Commission Action: Discussion of amendments to development agreement. C. Presentation by Dan Vang -Requested Commission Action: -EDA direction. 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 APRIL 11, 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 10:11 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 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 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 March 28, 2005, Regular Session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. PURCHASE AND DEVELOPMENT AGREEMENT WITH VOLUNTEERS OF AMERICA FOR THE SALE AND DEVELOPMENT OF LAND Executive Director Michael McCauley discussed that a public hearing had been scheduled for this evening; however, Hennepin County is not prepared to undertake issuance of bonds since this is a new undertaking for them. He informed that representatives from the Volunteers of America (VOA) were present to update the Commission. 04/11 /05 -1- DRAFT Mike Weber, President and CEO of the VOA, addressed the Commission to discuss their involvement in housing and that they have been in discussions regarding the senior housing project in Brooklyn Center for several months. They are extremely interested in this project and since a major part of the partnership was Hennepin County they will need to reconsider the financing and the style of the operation. The developer they are working with continues to be interested and they will remain willing and active to make the project happen. Commissioner O'Connor asked who owns the land now. Mr. McCauley discussed that the individual property owners own the land and that VOA has been in discussions with them regarding acquisition. Mr. Weber added that both of the property owners are interested in moving ahead with acquisitions. They have had a purchase agreement under discussion and view them as willing sellers. A motion by Commissioner Carmody, seconded by Commissioner Lasman to open the Public Hearing. Motion passed unanimously. No one wished to address the Commission. A motion by Commissioner Carmody, seconded by Commission Lasman to continue the Public Hearing to June 13, 2005. Commissioner O'Connor voted against the same. Motion passed. 4b. 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 Mr. McCauley discussed that the EDA had previously authorized acquiring the property from the Minnesota Department of Transportation (Mn/DOT). This item was continued on March 14, 2005, to finalize the arrangements. As summarized in the materials, the City would be a conduit and transfer the property to the developer for the amount of money that Mn/DOT is selling it to the City for purposes of conveying it to Mr. Evanson. It would require Mr. Evanson to go forward with the single family residential development that has been previously before the Commission and to reimburse the EDA for any of the incidental costs in connection with transferring the property to him in addition to the acquisition price from Mn/DOT. A motion by Commissioner Lasman, seconded by Commissioner Carmody to re -open the Public Hearing. Motion passed unanimously. Mr. Evanson addressed the Commission to discuss that this would become the second phase of Eastbrook Estates development. The preliminary plat had already been approved and they are looking forward to closing on this and incorporating this into the second phase plat. A motion by Commission Lasman, seconded by Commissioner Carmody to close the Public Hearing. Motion passed unanimously. 04/11/05 -2- DRAFT RESOLUTION NO. 2005-07 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ACQUISITION OF EXCESS MN/DOT RIGHT OF WAY PROPERTY AND SALE OF PROPERTY TO EASTBROOK PROPERTIES, LLC The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Carmody. Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Carmody to adjourn the meeting at 10:19 p.m. Motion passed unanimously. President 04/11/05 -3- DRAFT EDA Agenda Item No. 4a MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialist DATE: May 3, 2005 SUBJECT: Resolution Approving Environmental Response Fund Grant Agreement Between the Brooklyn Center Economic Development Authority (EDA) and Hennepin County Department of Environmental Services Over the past two years the City and EDA have received funding from Hennepin County's Department of Environmental Services for environmental investigation of the Hmong American Shopping Center site. The County program is called the Environmental Response Fund (ERF) program and it has provided 100 percent funding of Phase I and Phase II environmental investigations at the Hmong American Shopping Center site. In October 2004, the EDA authorized an application to the County's ERF program to conduct additional environmental investigation on the Hmong American Shopping Center site. The ERF has awarded the EDA a $60,000 grant to perform additional environmental invesigation of the site. Public agencies receiving ERF grants are required to execute an Environmental Response Fund grant agreement. This agreement is the County's standard agreement for all public agencies receiving ERF grants and is presented for EDA consideration. The $60,000 ERF grant does not require any local matching funds. The purpose of the $60,000 ERF grant is to conduct additional environmental investigation of the site, pursuant to information discovered during the Phase II investigation. The primary goals of the additional environmental investigation include: Additional investigation of chlorinated Volatile Organic Compound's (VOC's) associated with dry cleaning operations that were found at the site in soil and ground water samples taken near a former dry cleaning facility on the site. Additional work to determine if any of the VOC's have migrated from the site in the form of a contaminant plume. Additional work to determine extent and location of petroleum contamination in the southern portion of the site. The extent of the contamination was not determined during the Phase II investigation and the locations of the sources of the petroleum were not encountered during the Phase II investigation. It should be noted that these petroleum sites were previously investigated and have been closed by the MPCA, but it is possible that residual etroleum contamination of soils or ground water on the southern portion of p P the site will need to be addressed during redevelopment. 3 -2 -04 Page 1 Minnesota Pollution Control Agency (MPCA) oversight and review of environmental investigation and cleanup process provided through the MPCA's Voluntary Investigation and Clean -up program (VIC). Ultimately, since contaminants were found on the site during the Phase II investigation, they must be remediated in some way. The extent and quantity of specific contaminants cannot be determined from a Phase II investigation. The additional work authorized under the $60,000 grant awarded by Hennepin County will attempt to determine the extent and quantity of specific contaminants and move in the direction of preparing a formal Response Action Plan (RAP) to address the contamination when the site is redeveloped. The intent of the RAP is to create a plan to remediate contamination on and from the site. The RAP document provides a blueprint with which to clean up contaminated soils and ground water as the site is being redeveloped. One of the goals for the $60,000 ERF grant from Hennepin County will be to move as far as possible to the RAP preparation stage with regard to the Hmong American Shopping Center site. Hennepin County requires the EDA execute an Environmental Response Fund grant agreement between the EDA and Hennepin County Department of Environmental Services. A copy of the Environmental Response Fund grant agreement is included with this memorandum and is summarized as follows: Section 1 Grant Amount and Completion. The grant amount is $60,000 and is to be used for the Phase II assessment activities described in the EDA's application. The time allowed to complete the project is one year from the date of the execution of the agreement but the goal is to complete the work within six months. Section 2 Accounting and Recordkeeping. This section provides that the EDA will maintain appropriate financial records and requires the EDA to provide access to those records by the County and other agencies. Section 3 Payments /Disbursement Schedule. This section sets forth the procedure for payment of invoices for work on the project. Section 4 Reporting. This section requires the EDA to provide progress reports on the proj ect. Section 5 Contracts. This section requires the EDA to include certain provisions in all contracts pertaining to the assessment work including federal laws regarding employment and work place safety. Section 6 Termination, Cancellation and Assignment. This section stipulates that the agreement may be cancelled by the County upon 60 days written notice to the EDA without cause. This section is provided to assure that the project will be completed in a timely fashion in accordance with the approved work plans set forth in the application. Section 7 Independent Contractor. This section establishes the relationship between the EDA and the County and specifies that the grant agreement does not create a relationship 3 -2 -04 Page 2 i of co- partners between the County and the EDA. Under this provision the EDA is essentially an independent contractor for purposes of completing the work specified in the agreement. It also requires the EDA to indemnify and hold harmless the County relative to work performed under the agreement. Section 8 Indemnification. This section provides an indemnification statement relative to the EDA holding the County harmless from any liability related to work performed under the agreement. Section 9 Insurance. This section sets forth the insurance requirements for the EDA and any contractor performing work under the agreement. Section 10 Merger and Modification. This section provides that the entire agreement between the parties is contained in the agreement and that any alterations will be valid only when they have been reduced to writing as amendments to the agreement. Section 11 Minnesota Laws Govern. This section provides the statement that Minnesota laws shall govern all questions and interpretations concerning their validity and construction of the agreement. A copy of the Environmental Response Fund Grant Agreement between the EDA and Hennepin County Department of Environmental Services is included with this memorandum. As indicated previously, the grant does not require any matching funds from the city or EDA. Due to the generic nature of these agreements, the City of Brooklyn Center is listed in the title of the agreement. The first paragraph of the agreement specifies that the agreement is with the EDA as intended. It should be noted the agreement is identical to other ERF grant agreements previously approved by the City and EDA. A copy of the resolution approving Environmental Response Fund grant agreement between the Brooklyn Center Economic Development Authority (EDA) and Hennepin County Department of Environmental Services is included with this memorandum. In addition to approving the agreement, the resolution authorizes the EDA Executive Director to solicit proposals for the work to be accomplished by the grant activities. The environmental consulting firm selected must also enter into an agreement with the EDA to comply with all requirements of Hennepin County with regard to the Environmental Response Fund grant agreement before the EDA. 3 -2 -04 Page 3 Member introduced the followin g resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING ENVIRONMENTAL RESPONSE FUND GRANT AGREEMENT BETWEEN THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) AND HENNEPIN COUNTY DEPARTMENT OF ENVIRONMENTAL SERVICES WHEREAS, THE Brooklyn Center Economic Development Authority (EDA) adopted Resolution No. 2004 -11 approving an application to the Hennepin County Environmental Response Fund for an Environmental Site Assessment for the Hmong American Shopping Center located in Brooklyn Center; and WHEREAS, the Hennepin County Board of Commissioners has approved the EDA's Environmental Response Fund Grant Application and has awarded $60,000 to the EDA for Assessment work at the shopping center site; and WHEREAS, the EDA is required to execute an Environmental Response Fund Grant Agreement between the EDA and Hennepin County Department of Environmental Services to receive the Environmental Response Fund Grant award; and WHEREAS, an Environmental Response Fund Grant Agreement between the EDA and Hennepin County Department of Environmental Services has been prepared by Hennepin County for execution by the EDA; NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, Minnesota that the Environmental Response Fund Grant Agreement between the EDA and Hennepin County Department of Environmental Services is hereby approved and the EDA President and Executive Director are hereby authorized to execute the agreement. BE IT FURTHER RESOLVED that the EDA Executive Director is hereby authorized to solicit proposals for the environmental work authorized in the Hennepin County Environmental Response Fund Agreement. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member 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. ENVIRONMENTAL RESPONSE FUND GRANT AGREEMENT Contract No. A042170 BETWEEN THE CITY OF BROOKLYN CENTER AND HENNEPIN COUNTY DEPARTMENT OF ENVIRONMENTAL SERVICES This Agreement is made on by and between the County of Hennepin, State of Minnesota "County" or "Grantor" at A2300 Government Center, Mpls, MN 55487) by and through its Department of Environmental Services "Department') and the City of Brooklyn Center by and through its Economic Development Authority, 6301 Shingle Creek Parkway, Brooklyn center, MN 55430 "Grantee Grantee has made application to the County for a grant to be used for assessment of potential contamination in the vicinity of 1910 -2000 57` Avenue North, in Brooklyn Center, which application is incorporated into this Agreement by reference. In consideration of the mutual promises set forth below, the parties agree as follows: 1. GRANT AMOUNT AND COMPLETION The County shall grant to the Grantee a sum not to exceed sixty thousand dollars 60,000.00) which funds shall be only for expenses incurred in performing activities specified in the Application and as may be further described in Exhibit A to this Agreement or as approved by County staff. Approved assessment and/or clean -up activities as may be described in the application and Exhibit A are referred to herein as the "Project'. Administrative costs incurred by the Grantee are not eligible for reimbursement via this Agreement. Grantee agrees to complete the Project within one (1) year of execution of this Agreement and within the terms stated herein. Any material change in the scope of the Project, including time schedule and budget, must be approved in writing by the County. Funds made available pursuant to this Agreement shall be used only for expenses incurred in performing such purposes and activities described in the Application and this Agreement. 2. ACCOUNTING AND RECORD KEEPING For all expenditures of funds made pursuant to this Agreement, the Grantee shall keep financial records including properly executed contracts invoices and other documents sufficient to evidence in proper detail the nature and P P propriety of the expenditures. Accounting methods shall be in accordance with generally accepted accounting principles. Grantee agrees that the County, the State Auditor, or any of their duly authorized representatives at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the Grantee and involve transactions relating to this Agreement. Such materials shall be maintained and such access and rights shall be in force and effect during the period of the Agreement and for six (6) years after its termination or cancellation. 3. PAYMENT/DISB URSMENT SCHEDULE Grantor will disburse funds to Grantee pursuant to this Agreement, based on a payment request form provided by the Grantor, submitted by the Grantee and approved by the Grantor. Payment requests can be submitted once per month and must be accompanied by supporting invoices that relate to activities in the approved Project budget. Subject to verification of adequacy of a written disbursement request and approval of consistency with this Agreement, the Grantor will disburse the requested amount to the Grantee within four (4) weeks after receipt of a written disbursement request. 1 4. REPORTING I Grantee shall submit to the Grantor a report on the distribution of funds and the progress of the Project covered from the date of the grant award through June 30 of each year. The reports must be received by the County no later than July 25 of each year. The report shall identify specific goals listed in the application and quantitatively and qualitatively measure the progress of such goals. Reporting forms will be provided by the Grantor. In addition, the required documentation listed in Attachment A should be supplied as it becomes available. 5. CONTRACTS Grantee shall include in any contract, provisions that require contractors to comply with all applicable state and federal laws and regulations regarding employment and workplace safety. In accordance with Hennepin County's policies against discrimination, Grantee agrees that it shall not exclude any person from full employment rights or participation in or the benefits of any program, service, or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, or national origin; and no person who is protected by applicable Federal or State laws, rules, or regulations against discrimination shall be otherwise subjected to discrimination. Public Grantees and any contractors or subcontractors performing services as part of this Agreement shall follow that public Grantee's non discrimination policy. 6. TERMINATION, CANCELLATION AND ASSIGNMENT This Agreement may be canceled by the County upon sixty (60) days written notice to the Grantee without cause. In the event of such cancellation, Grantee shall be entitled to payment, determined on a pro rata basis, for work or services satisfactorily performed up to the effective date of such cancellation. If the County finds that there has been a failure to comply with the provisions of this Agreement, that reasonable progress has not been made toward commencement or completion of the assessment and/or clean -up activities specified in the Application and this Agreement, notwithstanding any other provisions of this Agreement to the contrary and after written notice and reasonable opportunity to cure, the County may refuse to disburse additional funds and/or require the return of all or part of the funds already disbursed, to the extent such funds were used for purposes other than activities contemplated by this Agreement. This Agreement may not be assigned without the prior written consent of the County. 7. INDEPENDENT CONTRACTOR The Grantee shall select the means, method, and manner of performing the activities herein. Nothing is intended or should be construed in any manner as creating or establishing the relationship of co- partners between the parties hereto or as constituting the Grantee as the agent, representative, or employee of the County for any purpose or in any manner whatsoever. The Grantee is to be and shall remain an independent contractor with respect to all services and activities performed under this Agreement. Any and all personnel of the Grantee or other persons while engaged in the performance of any work or services required by the Grantee under this Agreement shall have no contractual relationship with the County, and shall not be considered employees of the County. Any and all claims that may or might arise under the Minnesota Economic Security Law or the Workers' Compensation Act of the State of Minnesota on behalf of said personnel, arising out of employment or alleged employment including without limitation, claims of discrimination against the Grantee, its officers, agents, contractors, or employees shall in no way be the responsibility of the County. The Grantee shall defend, indemnify and hold harmless the County, its officials, officers, agents, and employees from any and all such claims irrespective of any determination of any pertinent tribunal, agency, board, commission, or court. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the County, including, without limitation, tenure rights, medical and hospital care, sick leave, Workers' Compensation, Re- employment Compensation, disability, severance pay, and retirement benefits. 2 8. INDEMNIFICATION The Grantee agrees to defend, indemnify and hold harmless, the County, its officials, officers, agents and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of the Grantee, its contractors or subcontractors or anyone directly or indirectly employed by them, and/or any party that directly or indirectly benefits from the activities specified in this Agreement, and/or anyone for whose acts and/or omissions they may be liable in the performance of the activities specified in this Agreement and against all loss by reason of the failure of the Grantee to perform fully, in any respect, all obligations under this Agreement. 9. INSURANCE In order to protect the County and those listed above under the indemnification provision, the Grantee agrees at all times during the term of this Agreement and beyond such term when so required, to have and keep or cause to have and be kept in force, and to cause all contractors to do likewise, the following insurance coverages under either a purchased insurance or self insurance program: 1. Commercial General Liability on an occurrence basis with Contractual Liability Coverage: Limits General Aggregate $1,000,000 Products- Completed Operations Aggregate 1,000,000 Personal and Advertising Injury 1,000,000 Each Occurrence Combined Bodily Injury and Property Damage 1,000,000 2. Automobile Liability Combined single limit each occurrence for 1,000,000 bodily injury and property damage covering owned, non owned, and hired automobiles. 3. Workers' Compensation and Employer's Liability: a. Workers' Compensation Statutory If the contractor is based outside the State of Minnesota, coverage must apply to Minnesota laws. b. Employer's Liability. Bodily Injury by: Accident Each accident 100,000 Disease Policy Limit 500,000 Disease Each Employee 100,000 4. Professional Liability Per Claim and Aggregate 1,000,000 The insurance must be maintained continuously for a period of two years after the termination of this Agreement. The Grantee shall require that any independent contractors rendering assessment and/or clean -up activities under this Agreement furnish certificates of insurance to the Grantee of the insurance coverages listed above, and provide updated certificates as coverages expire. An umbrella or excess policy over primary liability coverages is an acceptable method to provide the required insurance limits. The above establishes minimum insurance requirements. It is the sole responsibility of the Grantee to determine the need for and to procure additional insurance which may be needed in connection with this Agreement. Copies of policies shall be submitted to the County upon written request. The Grantee shall not commence work until it and any contractors have obtained the required proof of insurance which clearly evidences required insurance coverages. 3 1 If the Grantee fails to furnish proof coverages, if requested by the County, the County may withhold payments and/or pursue any other rights or remedy allowed under the contract, law, equity, and/or statute. 10. MERGER AND MODIFICATION It is understood and agreed that the entire Agreement between the parties is contained herein and that this Agreement supercedes all oral agreements and negotiations between the parties relating to the subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. Any alterations, variations, modifications or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. 11. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and performance under it. The appropriate venue and jurisdiction for any litigation hereunder will be those courts located within the County of Hennepin, State of Minnesota. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. The Remainder Of This Page Was Intentionally Left Blank i I 4 COUNTY BOARD APPROVAL GRANTEE, having signed this agreement, and the Hennepin County Board of Commissioners having duly approved this agreement on the of 2005, and pursuant to such approval, the proper County officials having signed this agreement, the parties hereto agree to be bound by the provisions herein set forth. Reviewed by the County Attorney's COUNTY OF HENNEPIN Office STATE OF MINNESOTA By: Assistant County Attorney Chair of Its County Board Date: ATTEST: Deputy/Clerk of County Board And: Assistant/Deputy/County Administrator By: Assistant County Administrator, Public Works Date: Recommended for Approval By: Director, Department of Environmental Services Date: GRANTEE The Grantee certifies that the person who executed this Agreement is authorized to do so on behalf of the Grantee as required by applicable articles, bylaws, resolutions or ordinances.* Name: CITY OF BROOKLYN CENTER EDA By: Date: By: Date: *GRANTEE shall submit applicable documentation (articles, bylaws, resolutions or ordinances) that confirms the signatory's dele gation of authority. This documentation shall be submitted at the time Grantee returns the Agreement to the County. Documentation is not required for a sole proprietorship. 5 Exhibit A City of Brooklyn Center EDA Proiect Summarv: The project site consists of two single- tenant retail buildings occupied by a grocery store and an auto repair business and two multi tenant retail buildings, all built in the 1950s and 1960s. The multi- tenant buildings are only partially occupied. The City of Brooklyn Center is considering redeveloping the site for mixed commercial and residential use. Soil and ground water contamination exists at the site as a result of past petroleum and dry- cleaning solvent releases. An ERF grant of $60,000 is awarded to the City of Brooklyn Center to evaluate the site and the extent of ground water contamination, which appears to extend into an adjacent residential area. This project previously received funding for preliminary assessment activities from Hennepin County's U.S. EPA Suburban Brownfields Assessment Grant ($27,000) and the ERF ($37,000). The following costs are based on a budget submitted by the Grantee. Modifications must be approved in writing by the Grantor. Approved Budget for Hmong American Site: Environmental assessment and RAP preparation 57,000 MPCA VIC Program costs 3.000 Total: 60,000 Reouired Documentation to be Submitted to Hennepin Countv: Consultant /Contractor/MPCA Invoices Environmental Assessment Report RAP MPCA Approval Letters Annual Project Progress /Summary Report(s). E -1 EDA Agenda Item No. 4b MEMORANDUM TO: Michael McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: May 4, 2005 SUBJECT: Brooklyn Hotel Partners, LLC Development Agreement In January of this year, the EDA entered into a development agreement with Brooklyn Hotel Partners, LLC. Under the terms of the agreement, Brooklyn Hotel Partners is to build a 200 room Radisson Hotel on the property immediately west of the Earle Brown Heritage Center. The hotel is to be physically connected to the Earle Brown Center with an enclosed walkway. In addition, the development is to include a 25,000 square foot water park and a 150 seat restaurant. The partnership is about to submit its site and building plans to the Panning Commission for review this month. However, before they make the submission there are several proposed changes to the development that need to be reviewed by the EDA before they procede. The Partnership would like to construct two (2) hotels on the site with a total of 262 rooms. The first hotel would be a 174 room Embassy Suits Hotel as opposed to a Radisson. The second hotel would be an 88 room Hampton Inn. Both hotels are Hilton products. The hotels would both be connected to the water park and the Earle Brown heritage Center. The water park as originally conceived was 25,000 and is currently contemplated at approximately 30,000 square feet. The cost estimate of the original concept was approximately $32,000,000. The preliminary cost estimate of the development as now proposed is approximately $38,000,000. All other conditions of the agreement would remain the same. The developers proposed changes not only brings a marquee hotel to Brooklyn Center with the Embassy Suits but coupled with the Hampton it provides the Heritage Center with a broader range of room price points to market with conferences packages. The developer has initiated the application process with Hilton Hotels and will make full application with EDA approval. (See attached letter). Staff believes that the proposed changes reflect the type and level of development originally sought by the EDA. Further, as proposed we feel that it is a better over all package for the Earle Brown Center. If the EDA concurs, the developer will proceed with the submission to the Planning Commission and staff will prepare an amendment to the development agreement reflecting the changes for EDA consideration when the site and building plan come to the Council. Representatives of Brooklyn Hotel Partnership will be available Monday evening. May 02 05 04:31p Hilton Hotels Co 312 294 6827 p.2 I— Hilton Matthew C. Wchling Director, Franchise Development Central Region May 2, 2005 Seth Oliver 5713 Grand Ave. Ste. B Duluth, MN 55807 Dear Mr. Oliver, 1 am writing this letter to inform you of our receipt of the franchise applications for Ilampton Inn and Embassy Suites hotels in Brooklyn Center, MN. We value your interest in Hilton Hotels and look forward to processing these applications for this exciting project. The applications spelled out the projects in detail, however, there were a few missing items needed to continue processing them. I have been in contact with Scott Tessier, who is in the process of clarifying and gathering the necessary information. Once I receive the requested items, I look forward to presenting the applications to our Franchise Committee on your behalf. Should you have any questions or require further information, don't hesitate to contact Inc ally time I may be of assistance. Respectfully, ff Matthewi. Wchling Director Franchise Development Hilton Motels Corp Hilton Hotels Corporation 720 South Michigan Avenue, Chicago, IL 60605 Tel: 312 294 6666 Fax: 312 294 6827 email: n►att..wehling @hiltun.eom Ilece,ation.: s,•ww.hilton.cotn or 1.800- HUTONS 0 350 PARKING STALLS T r� 0 EMBAASSYYS ITES (iTy uHrtsl INDOOR WATER PARK 32.000 SO. Ff. LMM z HAMPTON t STORIES I b' o fin D 7M i Metal Panels C► <B Brick Aluminum Window y Pr i L9 A South Elevation Scale 1/32" 1' 111 lE ii B East Elevation skylights Scale 1/32" I' Metal Panels Aluminum Window M Precast Concrete W p C West Elevation Skylights scale 1/32" r ,i Metal Panels Brick Mourn oum Window E 7 7WIM AL I D North Elevation Scale 1/32" 1' EDA Agenda Item No. 4c e City of Brooklyn Center A Millennium Community MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Lasman, Niesen, and O'Connor FROM: Michael J. McCauley, City Manager DATE: May 4, 2005 SUBJECT: Northbrook/Hmong American Shopping Center At its February 14, 2005 meeting, the Economic Development Authority (EDA) indicated to the current owners of the Hmong American Shopping Center that the EDA would allow their group until the end of May to present additional information regarding a potential housing development. The EDA indicated that it was deferring any decision on an open competitive process to solicit redevelopment proposals for the Northbrook Shopping Center site until after the Hmong American Group would have the opportunity to work further on their proposal by the end of May. To update the EDA since this matter was last before it, the owners of the shopping center did in fact challenge the EDA's petition to acquire the property. The EDA has now incurred additional expense and use of significant staff time in successfully defending against this challenge. The District Court has approved the FDA's petition. We have given the tenants until July 1, rather than the original April 28, to relocate. The EDA's relocation consultant has been working with all of the tenants in a significant effort to assist them in relocating. At the present time, the owners of the property still have the ability to appeal the District Court's Ruling. Additionally, we have not been able to reach an agreement with respect to the acquisition price. Thus, a number of significant issues remain to be resolved. Those issues are whether or not the EDA will be involved with further court proceedings regarding the petition and the determination of the compensation to which the owners are entitled. With the special TIF Legislation still pending, this is a significant issue. It is significant because the total monies available to the EDA for redevelopment in TIF District No. 3 will be limited to monies expended by May 14 and the recent bond proceeds. The inability to finalize acquisition of the Hmong American Shopping Center prior to May 14 would result in only having bond proceeds available for the remaining acquisition costs if the special Legislation does not become law. [If the special Legislation became law, the EDA could also use TIF fund balance and revenues for these costs.] Staff will continue its previous recommendation that the EDA use a competitive process to solicit requests for proposals for redevelopment. The redevelopment proposal as it continues to be refined by the owners of the Hmong American Shopping Center may well be able to successfully compete in such an open process. The open process however maximizes the EDA's bargaining power. 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.cityolbrooklyncenter.org