HomeMy WebLinkAbout2004 04-12 EDAP EDA MEETING
City of Brooklyn Center
April 12, 2004 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 22, 2004 Regular Session
4. Commission Consideration Item
a. Public Hearing Regarding the Sale of Certain EDA Owned Property Located at 419
69�' Avenue North Pursuant to Minnesota Statutes, Section 469.012 Subdivision 7 and
Section 469.029
-Resolution Authorizing Economic Development Authority (EDA) Executive
Director to Execute Purchase Agreement far the Sale of the EDA Owned Property
Located at 419 69"' Avenue North
•Requested Commission Action:
-Motion to open Public Hearing
-Take public input.
-Motion to close Public Hearing.
-Motion to adopt resolution.
S. Adjournment
EDA Agenda Item No. 3a
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTI-�ORITY
OF THE CITY OF BROOKLYN CENTER
1N THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MARCH 22, 2004
CITY HALL CITY COUNCIL
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session and was
called to order at 7:32 p.m. by President Myrna Kragness.
2. ROLL CALL
President Myrna Kragness, Commissioners Kathleen Carmody, Kay Lasman, and Diane Niesen.
Commissioner Bob Peppe was absent and excused. Also present: Executive Director Michael
McCauley, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Commissioner Carmody, seconded by Commissioner Lasman to approve the agenda
and consent agenda. Motion passed unanimously.
3a. APPROVAL OF MINUTES
A motion by Commissioner Carmody, seconded by Commissioner Lasman to approve the March 8,
2004, regular session minutes. Commissioner Kay Lasman abstained. Motion passed.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION SELECTING THE NO WAIVER OPTION FOR
STATUTORY TORT LIABILITY
Executive Director Michael McCauley discussed that this resolution is similar to the resolution
adopted by the City Council regarding to choose the no waiver option for statutory tort liability.
03/22/04 -1- DRAFT
RESOLUTION NO. 2004-03
Commissioner Lasman 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 faregoing resolution was duly seconded by Commissioner
Carmod Motion assed unanimousl
Y P Y
5. ADJOURNMENT
A motion by Commissioner Carmody, seconded by Commissioner Lasman to adjaurn the meeting at
7:33 p.m. Motion passed unanimously.
President
e
03/22 4
/0 -2 DRAFT
EDA Agenda Item No. 4a
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT AUTHORITY
(EDA) E�ECUTIVE DIRECTOR TO EXECUTE PURCHASE AGREEMENT
FOR THE SALE OF THE EDA OWNED PROPERTY LOCATED AT 419 69�
AVENUE NORTH
WHEREAS, the Economic Development Authority (EDA) Resolution NO. 2004-
02 provided for a public hearing regarding the sale of the EDA owned property located at 419
69 Avenue North (the Property) pursuant to Minnesota Statutes; and
WHEREAS, EDA Resolution No. 2004-02 directed the EDA Executive Director
to prepare a purchase agreement for the sale of the property to Eastbrook Properties, LLC; and
WHEREAS, the EDA opened the public hearing on the terms and conditions of
the sale of the property to Eastbrook Properties, LLC at its April 12, 2004, meeting; and
WHEREAS, after conducting a public hearing, the EDA considered the terms and
conditions of the proposed sale of the property to Eastbrook Properties, LLC, as contained in the
purchase agreement prepared for the sale of the Property; and
WHEREAS, the EDA has determined it is in the best interest of the City of
Brooklyn Center to sell the property to Eastbrook Properties, LLC, pursuant to the terms and
conditions of the purchase agreement reviewed at its April 12, 2004, meeting.
NOW, THEREFORE, BE IT RESOLVED by the EDA in and for the City of
Brooklyn Center, Minnesota that the Purchase and Development Agreement attached to this
Resolution as Exhibit A is hereby approved and made part of this Resolution.
BE IT FURTHER RESOLVED that the Executive Director is hereby authorized
and directed to execute the Purchase and Development Agreement and all other documents
required for the sale of the EDA owned property to Eastbrook Properties, LLC.
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.
EXHIBIT A
PURCHASE AND DEVELOPMENT AGREEMENT
Brooklyn Center, Minnesota 2004
Received of Eastbrook Properties, LLC, a Limited Liability Com�any, the sum of $1,000 as earnest
money deposit for the purchase of property situated at 419 69 Avenue North, Brooklyn Center,
in the County of Hennepin, State of Minnesota, and legally described as follows:
The East 75 feet of the West 175 feet of that part of Lot 27 of Auditors Subdivision
No. 310 lying North of the South ll2 feet. Henn. Co. P.I.D. No. 36-119-21-12-0033
all of which property the Brooklyn Center Economic Development Authority (hereinafter referred
to as the "EDA") has this day agreed to sell to Eastbrook Properties, LLC, hereinafter referred to as
the Buyer, for the sum of $38,000, which sum shall be payable as follows:
(a) $1,000 the receipt of which is hereby acknowledged, as earnest money deposit, and
(b) $37,000 principal balance due upon closing.
The contract is subject to the following conditions:
1. The EDA 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 that do not interfere with present improvements
d. Restrictions relating to use or development of the properiy 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 EDA shall have the right to retain the aforementioned earnest money deposit
as liquidated damages.
CLL-245057v2
BR305-2
3. The Subject Property must be improved with a new single family residential structure
having at least 1200 square feet of finished living space; 2 bedrooms; 2 baths; a full
unfinished basement (unless the house design is a split level or split entry); and a two-car
attached garage. Manufactured or Modular residential structures shall not be constructed on
the Subject Property.
4. Buyer may not assign this agreement or any interest herein without prior written approval of
the EDA.
5. Buyer agrees that if there occurs any breach in the terms of paragraph 3 of this agreement
after payment of the purchase price for the land and before issuance of a certificate of
occupancy, then the title to and possession of the premises, hereinbefore described, shall at
the EDA's option revest in and revert to the EDA and the EDA shall have the right but not
the obligation, to complete any construction of the proposed improvements, and the EDA
shall have the absolute right to sell the premises and to refiznd to the Buyer amounts, if any,
remaining after the EDA reimburses itself for all its costs, expenses and damages incurred as
a result of such breach. In the event of such breach Buyer will furnish the EDA, at its
request, with all final construction plans pertaining to the construction of the proposed
improvements in accordance with paragraph 3. Any revestiture will be subject to any
outstanding mortgage placed on the property for the purpose of constructing the
improvements. Upon satisfaction by Buyer of its obligations hereunder, including
specifically its obligations to construct the improvements described in paragraph 3, the EDA
will provide the Buyer with a certificate in recordable form certifying that such obligations
have been fulfilled.
6. Taxes on this property shall be prorated as of date of closing. The EDA 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.
7. The EDA will furnish any available abstracts or certificates of title currently in its
possession. The Buyer shall .be allowed thirty days after receipt thereof, or written
notification that no such abstracts or certificates are available, to secure extension of such
abstracts or secure such additioi�al 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 EDA shall be allowed 120 days to make such title marketable.
Pending correction of title the payments hereunder required sha11 be postponed, but upon
conection of title and within ten days after written notice to the Buyer, the parties shall
perform this agreement according to its terms. Tit1e 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 pariy to
the agreement shall be liable for damages hereunder. All money theretofore paid by the
Buyer sha11 be refunded. If the title to said property is found marketable or is so made
within said time, and said Buyer shall default in any of the agreements and continue in
CLL-245057v2 2
BR305-2
default far a perioct of ten days, then and in that case the EDA may terminate this contract
and on such termulation all the payments made upon this contract sha11 be retained by the
EDA 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 perfonnance sha11 be conunenced within six months after such right of action
shall arise.
9. The Buyer acknowledges that construction of a residence 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. Closin�. The closing shall take place on or before July 30, 2004. The Buyer agrees to make
final payment of the balance of the purchase price to the EDA at the time of the closing.
11. Buyer agrees to pay all Closing Costs including Abstracting Fee, Closing Fee, Assessment
Search, Commitment Fee, State Deed Taac and Recording Fees.
12. It is the intent of the parties that this Agreement be recorded against the title to the Subject
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 recarding hereof. The Buyer's obligations under this
Agreement shall run with the land of the Subject Property and bind Buyer's heirs, successors
and a�signs until the certificate referred to in Section 5 of this Agreement is executed and
delivered by the City.
13. Buyer acknowledges for EDA's benefit fllat 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 EDA or EDA's representatives, agents or affiliates, including
without limitation any representation as to hazardous or toxic substances, soil condition, or
the availability ar adequacy of utilities. EDA shall give Buyer access to the Property for
purposes of conducting such inspection, investigation and examiiiation. Buyer shall
indemnify EDA from any damages resulting from Buyer's activities on the Property and
will restore the same to substantially their same eondition as existed prior to such activities
thereon by Buyer.
14. To the actual knowledge of Seller, all wells known to Seller on the Property are described in
the attached Minnesota Well Disclosure Statement.
15. Seller does not know if there is an abandoned individual sewage treatment system on the
Property.
CLI: 245057v2 3
BR305-2
I
BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY BUYER
By:
Its Executive Director Eastbrook Properties, LLC
STATE OF MINNESOTA
ss.
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
2004 b
the Executive irect r
Y D o of the Brookl
Center
Yri
Economic Development Authority, a public body, politic and corporate 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
2004, by the of
on behalf of the company.
Notary Public
I
cLU2asos��a 4
B�os-2
MINNESOTA WELL DISCLOSURE STATEMENT
Minnesota Law requires that before signing an agreement to sell or transfer real property after June 30, 1990, the
seller must disclose information in writing to the buyer about the status and location of all known wells on the
property. This requirement is satisfied by delivering to the buyer either a statement by the seller that the seller does
not know of any welis on the property, or a disclosure statement indicating the legal description and county and a
map showing the location of each well. In the disclosure statement the seller must indicate, for each well, whether
the well is in use, not in use or sealed.
A seller who fails to disclose the existence of a well at the time of sale and knew of, or had reason to know of, the
existence of a wetl is liable to the buyer for costs relating to the sealing of the weli and reasonable attorney fees for
collection of costs from the seller, if the action is commenced within six years after the date the buyer closed the
purchase of the real property where the weli is located.
Instructions for completion of this form are on the reverse side.
1. PROPERTY DESCRIPTION
Street address: 419 69` AV North Brooklyn Center Hennepin
City County
2. LEGAL DESCRIPTION
The East 75 feet of the West 175 feet of that vart of Lot 27 of Auditor's Subdivision No. 310 Ivina North of the South
112 feet. Henne�in Countv PID No. 36-119-21-12-0033
3. WELL DISCLOSURE STATEMEN
(Check the appropriate box.)
The seller certifies that the seller does not know of any wells on the above described real property. If this
option is checked, then skip to the last line and sign and date this statement.
X The seller certifies that the following wells are located on the above described real property.
Well Year of
Unique Number Depth Const. Well Type IN USE NOT IN USE SEALED
Well 1 46 feet unknown Water well O X
Well 2 p
Well 3 p
4. SEALED WELL INFORMATION
For each well designated as sealed above, complete this section.
When was the well sealed? November 23, 1993
Who sealed the well? Keys Welf Drilling Companv
Was a Sealed Well Report filed with the Minnesota Department of Health? Yes _X_ No
5. MAP
Complete the attached map showing the location of each well on the real property.
6. CERTIFICATION BY SELLER
I certify that the information provided above is accurate and complete to the best of my knowledge.
Seller or Designated Representative Date
7551v1
MAP
Please use the space below to sketch the real property being soid and the location of EACH well on the property.
Include distances from fixed reference points such as streets and buildings.
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ATTACH ADDITIONAL SHEETS AS NEEDED
7551v1
INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT
DEFINITION
A"well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise constructed if the
excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater.
MfNNESOTA UNIQUE WELL NUMBER
All new weils constructed AFTER January 1, 1975 should have been assigned a Minnesota unique welt number by
the person constructing the well. If the well was constructed after this date you should have the unique well number
in your property records. If you are unable to locate your unique well number and the well was constructed AFTER
January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth and
year of construction for each welL
WELL TYPE
Use one of the following terms to describe the well type.
WATER WELL A water well is any type of well used to extract groundwater for private or public use. Examples of
water welis are: domestic wells, drive-point wells, dug wells, remedial wells, and municipal welis.
IRRIGATION WELL An irrigation well is a well used to irrigate agricultural lands. These are typically large
diameter wells connected to a large pressure distribution system.
MONITORING WELL A monitoring well is a well used to monitor groundwater contamination. The well is
typically used to access groundwater for the extraction of samples.
DEWATERING WELL A dewatering well is a well used to lower groundwater levels to allow for construction or
use of underground spaces.
INDUSTRIAUCOMMERCIAL WELL An industrial/commercial well is a nonpotable well used to extract
groundwater for any nonpotable use including groundwater thermal exchange wells (heat pumps and heat loops).
WELL USE STATUS
Indicate the use status of each well. CHECK ONLY 1 BOX PER WELL.
IN USE A well is "in use" if the well is producing sufficient water to meet its intended use and is being operated on a
regular basis.
NOT IN USE A well is "not in use" if the well is inoperable and not in use or the well is disconnected from a
power supply and is not sealed.
SEALED A well is "sealed" if the welt has been sealed by a licensed contractor and there is a Sealed Well
Report on file at the Minnesota Department of Health. A properly sealed well has been sealed by a licensed
contractor by pumping grout throughout the entire borehole from the bottom of the well.
NOTE: If a well is inoperable and not in use or disconnected from a power source, it must be sealed by a licensed
well contractor or a well owner must obtain a maintenance permif from the Minnesota Department of Health and pay
an annual maintenance feel. If a well is operable and properly maintained, a maintenance permit is not required.
7551v1
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Tom Bublitz, Community Develo ment S ecialist���
P P
DATE: April 6, 2004
SUBJECT: Public Hearing Regarding the Sale of Certain EDA Owned Property Located at
419 69 Avenue North Pursuant to Minnesota Statutes, Section 469.012
Subdivision 7 and Section 469.029 and a Resolution Authorizing Economic
Development Authority (EDA) Executive Director to Execute Purchase
Agreement for the Sale of the EDA Owned Property Located at 419 69 Avenue
North
At its March 10, 2004 meeting, the Brooklyn Center Economic Development Authority (EDA)
approved Resolution 2004-02, which called for a public hearing regarding the sale of the EDA
owned property at 419 69 Avenue North to Eastbrook Properties, LLC. A copy of the public
hearing notice is included with this memorandum. The lot at 419 69 Avenue North is part of
the preliminary plat for Eastbrook Estates Second Addition, which has been approved by the
City of Brooklyn Center. A copy of the plat and a location map showing the lot at 419 69
Avenue North is included with this memorandum.
The EDA purchased 419 69 Avenue North in 1992. The original purpose of the acquisition was
to remove a seriously blighted property. The EDA has held the property over the years because
of the patential for residential development of the surrounding area.
Eastbrook Properties, LLC has requested that the EDA sell the lot at 419 69 Avenue North for
inclusion in the Eastbrook Estates plat. The developer is currently in the process of acquiring
other parcels to complete the platting, including the property owned by the Minnesota
Department of Transportation, which is the largest single property owner in the proposed
development area.
Resolution 2004-02 authorized the staff to prepare a purchase agreement for sale of the EDA
property to Eastbrook Properties, LLC, developer of the Eastbrook Estates Second Addition.
Staff has prepared a purchase agreement for the sale of the lot to Eastbrook Properties, LLC. The
main features of the purchase agreement are as follows:
The sale price of the lot is $38,000. This price recovers the EDA's original cost for
acquiring the property for the purposes of removing a substandard home. No formal
appraisal has been done on this lot but lot values in the northeast section of the city
average $41,500. In terms of the lots relationship to the Eastbrook Estates Second
Addition plat, it will likely be one of the less desirable lots due to the fact it will be
outside the main platted area facing 69 Avenue and its proximity to Highway 252.
Essentially, the $38,000 recovers the EDA's initial cost for the property.
The purchase agreement requires the developer to construct a minimum 1200 square foot
house on the property with a minimum 2 bedrooms and 2 baths with an attached 2 car
garage. At this stage in the project, the developer has not retain�d builders for the project
and, therefore, the requirements in the purchase agreement establish a basic size
requirement for the home to be constructed but not final designs.
The developer is required to pay all closing costs related to the sale of the property.
The lot is being sold "as is" to the developer through a quit claim deed and no warranties
are stated or implied with regard to the property.
A copy of the purchase agreement for the sale of the property at 419 69 Avenue North is
included along with a resolution, which would approve the terms and conditions of the sale of
the lot to Eastbrook Properties, LLC.
City of Brooklyn Center
(Official Publication)
NOTICE OF PUBLIC HEARING
REGARDING TFIE SAI.E OF LAND AT
419 69TH AVENUE NORTH
BY THE ECONOMIC DEVELOPMENT.
AUTHORITY
IN AND FOR TFIE CITY OF BROOKL7�N CENTER
Notice is hereby given that the Economic Development
Authority in and for the City of Brooklyn Center will hold
ne�s �/�►7 a public hearing on April 12, 2004 at 7 p.m•, or as soon
thereaiter as the matter may be heard, at the Brookl}'n
AFFIDAVIT OF PUBLICATION c enter City Hall lceated at 6301 Shingle Creek Parkway
i Brooklyn Center, Minnesota, pursuant to Minnesota
STATE OF MINNESOTA)
pmpo ed al of the foIlowing des ribed pmperty: ing the
East 75 ft. of west 175 ft. of that part lying north of the
I south 112 ft., Lot 27, Auditor's Subdiviaion No. 310 (419
COUNTY OF HENNEPIN) 69th Avenue North, Brooktyn Center),
fill persons desiring to be heard shall appear at the time
Richard Hendrickson, be(ng duly swom on an oath states or affirms, that he is the Chief and pYace referenced above.
Financial Officer of the newspaper known as Sun-Post and has ��a: M�� s, 2ooa
full Ivlowledge of the f3Cts st3ted below: Michael J. McCauley, Executive Director
(March 18, 2004)Pll419 69th Ave N,
(A) The newspaper has compiled with all of the requirements constituting qualiflcatlon as a
qualified newspaper, as provided by Minn. Stat. §331A.02, §331A.07, and other applicable
laws, as amended.
(B) The printed public notice that is attached was published in the newspaper once each week,
for one successive weeks; it was flrst pubiished on Thursday, the 18 day of
Maroh 2004, and was thereafter printed and published on every Thursday to and
including Thursday, the day of 2004; and printed below is a copy of the
lower case alphabet from A to Z, both inclusive, which ls hereby acknowledged as being the
size and kind of type used in the composR(on and pubif noUce•
BY:
CFO
Subscribed and swo n or affirme b fore me
this� day of��. 004.
/Q a a 1�.1� 17��
Not� Publi'c
l
MERIDEL M. HEDBLOM
:��r. -.�:t
NOTARY PUBLIGMINNESOTA
MY COMMISSiON EXPIRES 1•31•2005
A N RMATION
(1) Lowest classifled rate paid by commercial users 2.85 oer Iine
for comparable space
(2) Maximum rate allowed by law s_2o �er line
(3) Rate actually charged 1.40 Qer Iine
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