HomeMy WebLinkAbout2004 11-08 EDAP EDA MEETING
City of Brooklyn Center
November 8, 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 rneetings will be recorded as abstaining from the vote
on the minutes.
1. October 25, 2004 Regular Session
4. Commission Consideration Item
a. Resolution Authorizing the Acquisition of Real Property for Redevelopment
Purposes (Hmong Shopping Center)
•Requested Commission Action:
-Motion to adopt resolution.
b. Administrative Amendments to Ta�c Increment Financing District Nos. 2 and 3
Budgets
1. Resolution Approving the Modification of the Tax Increment
Financing Plan far Tax Increment Financing District No. 2
2. Resolution Approving the Modification of the Tax Increment
Financing Plan for T� Increment Financing District No. 3
•Requested Commission Action:
-Motion to adopt resolutions.
c. Resolution Authorizing Execution of Tax Increment Pledge Agreement
•Requested Commission Action:
-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
OCTOBER 25, 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 8:11 p.m. by President Myrna Kragness.
2. ROLL CALL
President Myrna Kragness, Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob
Peppe. Also present: Executive Director Michael McCauley, Assistant City Manager/Director of
Operations Curt Boganey, Public Works Directar/City Engineer Todd Blomstrom, City Attorney
Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the agenda
and consent agenda. Motion passed unanimously.
3a. APPROVAL OF MINUTES
A motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the September
27, 2004, regular session minutes. Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION AUTHORIZING SUBMISSION OF AN APPLICATION TO
HENNEPIN COUNTY ENVIRONMENTAL RESPONSE FUND
Executive Director Michael McCauley discussed that this item was discussed at the City Council
meeting and a resolution approving an application to Hennepin County Environmental Response
Fund was adopted. The resolution before the EDA would provide authorization for the
Environmental Response Fund grant application to Hennepin County in order to continue the
redevelopment opportunity for the Hmong Shopping Center.
10/25/04 -1- DRAFT
RESOLUTION NO. 2004-11
Commissioner Lasman introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING SUBMISSION OF AN APPLICATION TO HENNEPIN
COUNTY ENVIRONMENTAL RESPONSE FUND
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Carmody. Motion passed unanimously.
5. ADJOURNMENT
A motion by Commissioner Niesen, seconded by Commissioner Carmody to adj ourn the meeting at
8:13 p.m. Motion passed unanimously.
President
10/25/04 -2- DRAFT
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EDA Agenda Item No. 4a
MEMORANDUM
TO: Michael McCauley, City Manager
FROM: Brad Hoffman, Community Development Director
DATE: November 3, 2004
SUBJECT: Resolution Authorizing the Acquisition of the Hmong American Shopping Center
At the September 27, 2004 Economic Development Authority meeting, staff was directed to
acquire the property located at 1900 57 Avenue North, Brooklyn Center commonly referred to
as the Acme Typewriter Building. The acquisition of that parcel was the start of the
consolidation of six parcels of land north of 57 Avenue and west of Logan for purposes of
redevelopment. (See attached aerial.) The resolution before the EDA this evening authorizes the
acquisition of the remaining five parcels referred to as the Hmong American Shopping
Center/Northbrook Shopping Center.
The resolution authorizes the use of eminent domain includin uick take" to secure control of
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the properties. The owner, Mr. Chafong Lee and Dan Vang have been notified that the EDA
would be considering the acquisition of their property on the 8 th of November. I have also
discussed the time and place of the meeting as well as the intent with their attorney, Mr. Gordy
Jensen.
IF the EDA authorizes the acquisition, staff would proceed with the process immediately. The
acquisition of the site would be followed by the razing of the structures and the preparation of
the site (primarily soil contamination clean up) for purposes of its redevelopment. I would
anticipate that we would be able to solicit development proposals by the summer of 2005.
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O Commissioner introduced the following resolution and moved
its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ACQUISITION OF REAL PROPERTY FOR
REDEVELOPMENT PURPOSES (HMONG AMERICAN SHOPPING CENTER)
WHEREAS, the Brooklyn Center Economic Development Authority (the "EDA"), a
body corporate and politic organized and existing under the laws of the State of Minnesota, has the
power to engage in development and redevelopment activities pursuant to Minn. Stat. 469.090 to
469A18 and related statutes; and
WHEREAS, there has been duly adopted and is now in legal effect a Modified
Redevelopment Plan for Housing Development and Redevelopment Project No. l, which was
initially adopted by the Brooklyn Center Housing and Redevelopment Authority and the Brooklyn
Center City Council on July 22, 1985, which initial plan has been subsequently modified and
amended by various resolutions; and
WHEREAS, the EDA has become concerned about the present status of that properly
which is located north of 57�' Street, west of Logan Avenue, and southeast of Minnesota Highway
No. 100 (the "57�' and Logan Redevelopment Area"); and
WHEREAS, EDA staffhas met with representatives of the principal owner of most of
the properties located within the 57�' and Logan Redevelopment Area, Hmong-American Shopping
Center, LLC, and have discussed various redevelopment options; and
WHEREAS, the current condition of the properties located within the boundaries of
the 57�' and Logan Redevelopment Area consist of older, single story retail and service types of
business which have become economically obsolescent and a blighting influence and which exhibit
dilapidation, deferred maintenance, a layout that is not conducive to modern retailing standards,
excessive vacancy, and constitute a blighting and negative influence upon the adjacent
neighborhood; and
WHEREAS, the location of the 57�' and Logan Redevelopment Area is strategically
positioned such that it has visibility to a maj or highway, good local and regional access, and is within
the zone of influence of developments such as Brookdale Shopping Center and the Earl Browne area;
and
WHEREAS, the EDA has become concerned that the downward slide and blighting
influence of the properties located within the 57�' and Logan Redevelopment Area are exerting a
negative impact on nearby property values, and that by redeveloping the 57�' and Logan
Redevelopment Area the EDA could assist in creating new development opportunities and an
increase in the tax base, and result in an improvement in the properties to the betterment of the health
and welfare of the citizens of Brooklyn Center; and
EDA RESOLUTION N0.
WHEREAS, on September 27, 2004, the Board of Commissioners of the EDA
unanimously adopted Resolution No. 2004-10, which authorized the EDA to acquire through
negotiated purchase or by use of its power of eminent domain that parcel of the 57�' and Logan
Redevelopment Area which is at the northwest corner of 57�' and Logan; and
WHEREAS, the staff of the EDA has been considering possible redevelopment
alternatives for the property, and has. coneluded that it is appropriate and necessary for the EDA to
proceed as quickly as possible with the acquisition of the remainder of the parcels within the 57�' and
Logan Redevelopment Area, legally described as Lots 1, 2, 3, 4, and 5, Block 2, Northbrook Center
Addition, Brooklyn Center, Minnesota (the "Acquisition Parcels"); and
WHEREAS, the EDA has determined and believes based upon the report of its staff
and the determination of its Board of Commissioners that the redevelopment of the 57`�' and Logan
Redevelopment Area should continue with the acquisition by the Broolclyn Center EDA of the
Acquisition Parcels, that such acquisition is in the best interests of the EDA and the City of Brooklyn
Center, because it will assist in improving the health, safety, morals and welfare of the citizens of the
City of Brooklyn Center, and such acquisition is in accordance with the public purpose and
provisions of all applicable state and local laws; and
t WHEREAS, the EDA believes and determines that without its acquisition of the
Acquisition Parcels, future redevelopment opportunities are at risk and will not proceed, whereby the
City of Brooklyn Center wil� lose the benefits to be received from the redevelopment of the 57�' and
Logan Redevelopment Area; and
WHEREAS, the Brooklyn Center EDA has provided notice of a public meeting to be
held concerning the proposed acquisition of the Acquisition Parcels to those persons having an
interest in the Acquisition Parcels, the EDA has held such meeting, and all persons having interests
in the Acquisition Parcels were allowed to address any and all concerns to the EDA Board.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center, in view of the foregoing which are hereby adopted as findings
of fact, hereby resolves as follows:
1. The EDA hereby determines that it is in the public interest and is necessary for
purposes of proeeeding with a proposed redevelopment of the 57 and Logan Redevelopment Area,
for the EDA to acquire through negotiation with the property owner or by eminent domain the
Acquisition Parcels as described above.
2. The acquisition of the Acquisition Parcels is hereby determined to be necessary to
carry out a redevelopment project and to fulfill the goals and objectives of the Redevelopment Plan
for Housing Development and Redevelopment Project No. 1, which plan is hereby modified as
necessary to provide for the acquisition of the Acquisition Parcels.
EDA RESOLUTION NO.
3. The acquisition of the Acquisition Parcels is reasonably necessary for and fulfills the
public purpose of assisting to eliminate a blighting influence, provide for an increase in the t� base,
and will result in an improvement to the health and welfare of the citizens of Brooklyn Center.
4. For the reasons set forth herein and because of a concern that delays in the assemblage
of the properties located with the 57 and Logan Redevelopment Area will delay private
redevelopment, the EDA hereby deems it necessary to proceed without delay under Minn. Stat
117.042 and to pay to the owners or into the District Court a sum of money to secure compensation
to the owners of interests in the Acquisition Parcels, which amount shall be equal to the petitioner's
approved appraisal of value as determined by the EDA staff and legal counseL The EDA hereby
specifically authorizes and intends that its legal counsel shall acquire the Acquisition Parcels
pursuant to the provisions of Minn. Stat. 117.042, and use the "quick take" procedure in acquiring
title to the Acquisition Parcels.
November 8, 2004
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.
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EDA Ag�nda Item No. 4b
MEMORANDUM
TO: Michael McCauley, City Manager
FROM: Brad Hoffman, Community Development Directar
DATE: November 4, 2004
SUBJECT: Administrative Amendments to TIF 2 and TIF 3 Budgets
There will be two (2) resolutions before the EDA Monday evening with administrative
amendments to the budgets of both TIF District2 and TIF District 3. Because there is no increase
in estimated tax increments, bonded indebtedness or other changes described by Minnesota
Statute, a public hearing is not required. Both resolutions are line item adjustments to more
accurately reflect previous expenditures as well as anticipated expenditures. As an example, in
TIF 3 acquisitions has been increased from $15,000,000 to $19,200,000 while public utilities has
been decreased from $8,000,000 to $1,000,000. (The original plan included substantial amounts
for streetscaping. Subsequent TIF law changes have reduced the ability to use TIF for
improvements beyond streets and basic utilities.) In reviewing the focus for redevelopment,
acquisition costs will be the major component of the expenditures. These actions are being taken
to keep our TIF plans in compliance with the requirements of the State. Again there is no change
in authorized activities nor is there an increase in expenditures or debt.
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Commissioner introduced the following resolution and moved its
adoption:
I EDA RESOLUTION NO.
RESOLUTION APPROVING THE MODIFICATION OF THE TAX
1NCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 2
BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center
Economic Development Authority, Minnesota as follows:
Section l. Recitals.
1.01. The Brooklyn Center Economic Development Authority, Minnesota (the
"Authority") has heretofore established Housing Development and Redevelopment Project No. 1
(formerly known as the Earle Browne Farm Redevelopment Project) (the "Project Area")
pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and adopted a Redevelopment Plan
therefor, as amended (the "Redevelopment Plan"). The Authority also established Tax Increment
Financing District No. 2, more commonly known as the Earle Brown Farm Tax Increment
Financing District (the "TIF District"), within the Project Area and adopted a T� Increment
Financing Plan therefor (the "TIF Plan") all pursuant to and in accordance with Minnesota
Statutes, Sections 469.174 to 469.1799.
1 A2. The Authority desires to modify the TIF Plan in order to make certain
administrative changes to the TIF Plan, such changes are attached hereto as Exhibit A.
1.03. The Authority has caused to be prepared a modification to the TIF Plan. The
modification to the TIF Plan does not increase the total estimated tax increment expenditures, the
amount of bonded indebtedness, capitalized interest, or make any other changes described in
Minnesota Statutes, Section 469.175, subd. 4, that would require a new public hearing.
Section 2. Authoritv AnnrovaL
2.01. The Authority finds that its objectives in encouraging development and
redevelopment within the Project Area and TIF District would be advanced by adoption of the
modification to the TIF Plan.
2.02. The modified TIF Plan is hereby approved and adopted by the Authority.
November 8, 2004
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.
EDA RESOLUTION NO.
STATE OF MINNESOTA
ss.
COUNTY OF HENNEPIN
I, the undersigned, being the duly qualified and acting Secretary of the Brooklyn Center
Economic Development Authority, Minnesota, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes with the original minutes of a meeting of
the Board of Commissioners of the Brooklyn Center Economic Development Authority,
Minnesota held on the date therein indicated, which are on file and of record in my office, and
the same is a full, true and complete transcript therefrom insofar as the same relates to a
Resolution Approving the Modification of the Tax Increment Financing Plan No. 2.
WITNESS my hand as such Secretary of the Brooklyn Center Economic Development
Authority, Minnesota this day of November, 2004.
Secretary
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Exhibit A
0
Brooklyn Center Economic Development
Authority, Minnesota
Administrative Amendment
to
Tax Increment Financing Plan
for
Tax Increment Financing (Redevelopment)
District No. 2
(Earle Brown Farm Project)
Dated: November 1, 2004
Amendment Approved:
Prepared by:
SPRINGSTED INCORPORATED
85 E. Seventh Place, Suite 100
St. Paul, MN 55101-2887
(651) 223-3000
WWW, SPRINGSTED. COM
Introduction
The purpose of the Administrative Amendment to the Tax Increment Financing Plan for Tax
lncrement Financing District No. 2 is to make a line-item adjustment to the Estimated Project
Costs and Estimated Revenue Sources. This amendment will not increase the overall size of
the budget. The sections specifically being modified are the Estimated Project Costs and
Revenue Sources. This amendment does not reflect all the legislative changes that have
occurred since original adoption, and may not reflect fully the financial ramifications of all the
TIF and property tax system changes.
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TABLE OF CONTENTS
Section Pa e s
Estimated Casts ..............:..............................................................................................1
Estimated Revenue Sources ..................................................................................,...................2
Brooklyn Center Economic Developmenf Authority, Minnesota
Estimated Project Costs
The estimated project costs are based solely upon those pra}ects involving expenditures on
the part of either the City or EDA. Tabie I represents the total redevelopmenf costs including
the cost of acquiring all privately held land within the district. The costs also include interim
finance costs based upon assumptions outlined in this section under "Revenue Sources".
ANTICIPATED DEVELOPMENT
1. Construction of 130,000 square feet of retail (Target) is anticipated along Shingle Creek
Parkway between the intersection of Summit Drive on the north and John Martin Drive
on the south. Current zoning is C-2. It is anticipated that construction will begin in the
summer of 1985. See Figure fV. Completed 1986.
2. Construction of 269 units of apartments. The project is to be cons#ructed on the Earle
Brown Farm site. The land is presently zoned I- and will necessitate a rezoning to R-7.
Construction to start in the spring of 1987. See Figure V. Completed 1988.
3. Construction of 67,000 square feet of retail on the parcels located on Summit Drive and
Earle Brown Drive. Present zoning is C-2. Construction to begin in 1988. See Figure
VL
4. Renovation of the Earle Brown Farm. Acquisition is anticipated by the summer of 1985.
Renovation of the existing building will start in the spring of 1986. See Figure VIIL
Completed 1989.
5. Traffic Light Installation. See Figure 1X. Completed.
6. Construction ofi a 200 room hotel
TABLE I
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ORIGINAL MODIFIED MODIFtED
Estimated Project Costs 11-8-04
Land/Building acquisition $2,920,000 $3,260,000 $3,260,000
Site lmprovements/Preparation costs 0 0 2.600,OQd
lnstallation of public utilities 1,300,000 1,500,000 750,000
Parking facilities 0 1,500,000 1.536.564
Streets and sidewalks 500,000 985,000 830.000
Social, Recreation and conference 2,000,000 9,016,000 10.850,Q00
Bond principal payments 5,250,000 15,570,000 15,1 Q0,000
Bond interest payments 5,561,965 10,600,761 8,580,000
Loan Principal payments 7,574,067 7,085,000
Loan Interest payments 1,956,409 935.000
Administrative expenses 309,000 562,300 900.000
Capitalized interest
Other
Contingencies 1,001,900 23.369
Operating subsidies 1,250,000 1.324.604
Transfers Out
Tota( 18,842,865 53,774,537 53,774,537
The Authority reserves the right to administratively adjust the amount of any of the items listed
above or to incorporate additional eligible items, so long as the total estirnated public cost is
not increased.
SPRINGSTED Page 1
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Brooklyn Center Economic Development Authority, Minnesota
Estimated Revenue Sources
The primary revenue source for the acquisitian and redevelopment of the Earle Brown Farm
and the streetscaping plan for the District will be tax increment financing bonds. Also available
for the acquisition of the Earle Brown Farm are Community Development Block Grant Funds
and iand sales.
The primary revenue source for other public projects will be special assessments, Municipal
State-Aid Roadway Funds and local roadway funds. Possible future redevelopment loans and
soil correction projects would be funded with tax increment dollars but such projects would not
be bonded for.
For the acquisition of the Earle Brown Farm, it is anticipated that $1,000,000 in Community
Development Block Grant Funds would be available. Land sales for the development of rental
units are estimated at $650,000.
The estimated captured value is based upon development completed and fully assessed by
1991. In addition to the capture of the increment for new development, it is anticipated that
additional increment will be obtained for increased values, both new and existing development,
during the life of the district. It is assumed that assessed values will increase at three (3)
percent annually.
Based upon the estimated assessed value captured (see Table II) within the district a bond
issue for twenty (20) years, it is the desire and intent of both the City and the EDA to terminate
this District at such time when reserve funds are of a sufficient amount to assure the
completion of the project and the retirement of all indebtedness associated with the project.
(See Addendum B— Cash Flow Analysis).
ORIGINAL MODIFIED MODIFIED
Estimated Revenue Sources 11-8-04
Tax Increment revenue $12,534,744 $26,170,761 $26.170,761
Interest on invested funds 760,267 400,000 2,200.000
Bond proceeds 5,167,364 16,679,709 15.434,223
Loan proceeds 0 7,574,067 7.574.067
Real estate sales 650,000 650,000 1.395,486
Special assessments 1,300,000 1,300,Od0 0
Rent/Lease revenue 0 0 0
Grants 680,000 1,000,000 1.000,000
Other
Transfers In
21,092,375 53,774,537 53.774,537
Total
SPRINGSTED Page 2
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING THE MODIFICATION OF THE TAX
INCREMENT FINANCING PLAN FOR TAX 1NCREMENT FINANCING
DISTRICT NO. 3
BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center
Economic Development Authority, Minnesota as follows:
Section 1. Recitals.
1.01. The Brooklyn Center Economic Development Authority, Minnesota (the
"Authority") has heretofore established the Housing Development and Redevelopment Project
No. 1(the "Project Area") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and
adopted a Redevelopment Plan therefor, as modified (the "Redevelopment Plan"). The Authority
also established the Tax Increment Financing District No. 3(the "TIF District") within the
Project Area and adopted a Tax Increment Financing Plan therefor (the "TIF Plan") all pursuant
to and in accordance with Minnesota Statutes, Sections 469.174 to 469.1799.
1.02. The Authority desires to modify the TIF Plan in arder to make certain
administrative changes to the TIF Plan, such modification is attached hereto as E�iibit A.
1.03. The Authorit has caused to be re axed a modification to the TIF Plan which is
Y P p
attached hereto as Exhibit A. The modification to the TIF Plan does not increase the total
estimated tax increment expenditures, the amount of bonded indebtedness, capitalized interest, or
make any other changes described in Minnesota Statutes, Section 469.175, subd. 4, that would
require a new public hearing.
Section 2. Authoritv Apnroval.
2.OL The Authority finds that its objectives in encouxaging development and
redevelopment within the Project Area and the TIF District would be advanced by adoption of
the modification to the TIF Plan.
2.02. The modified TIF Plan is hereby approved and adopted by the Authority.
November 8. 2004
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.
RESOLUTION NO.
STATE OF MINNESOTA
ss.
COUNTY OF HENNEPIN
I th un
e dersigned, being the duly qualified and acting Secretary of the Brooklyn Center
Economic Development Authority, Minnesota, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes with the original minutes of a meeting of
the Board of Commissioners of the Brooklyn Center Economic Development Authority,
Minnesota held on the date therein indicated, which are on file and of record in my office, and
the same is a full, true and complete transcript therefrom insofar as the same relates to a
Resolution Approving the Modification of the Tax Increment Financing Plan No. 03.
WITNESS my hand as such Secretary of the Brooklyn Center Economic Development
Authority, Minnesota this day of November, 2004.
Secretary
Exhibit A
Brooklyn Center Economic Development
Authority, Minnesota
Admini�trative Amendment
to
Tax Increment Financing Plan
for
Tax Increment Financing (Redevelopment)
District No. 3
Dated: November 4, 2004
Amendment Approved:
Prepared by:
SPRINGSTED INCORPORATED
85 E. Seventh Place, Suite 100
St. Paul, MN 55101-2887
(651) 223-3000
WWW. SPRINGSTED. COM
Introduction
The purpose of the Administrative Amendment to the Tax Increment Financing Plan for Tax
Increment Financing District No. 3 is to make a line-item adjustment to the estimated project
costs and sources of revenue. This amendment will not increase the overall size of the budget.
The section specifically being modified is Section G, Estimate of Costs and Section I Sources of
Revenue. This amendment does not reflect all the legislative changes that have occurred since
original adoption, and may not reflect fully the financial ramifications of all the TIF and property
tax system changes.
TABLE OF CONTENTS
Section Pa e s
G Estimate of Costs ..................................................................................................................1
I Sources of Revenue .............................................................................................................2
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Brooklyn Center Economic Development Authority, Minnesota
G. Estimate of Costs
The estimate of public costs associated with District No. 3 is outlined in the following line item
budget:
Estimate of Public Costs
ORIGINAL MOD.1 MODIFIED
11-8-04
Land Acquisition 19.200,000
a. Commercial $7,000,000 $7,000,000
b. Industrial 8,000,000 8,000,000
Public Improvements
a. Streetscape 4,500,000 4,500,000
b. Public Works/Storm water 3,500,000 3,500,000 1,000.000
Demolition and Relocation 0 0
Site Improvements/Site Preparation 0 1,000,000 3,842.572
Public Parking Facilities 0 0 2,000,000
Bond principal payments 29,000,000 29,000,000 29,000,000
Bond interest payments 20,000,000 20,000,000 16,500,000
Loan Principal Payments 1.000,000
Loan Interest Payments 281,428
Administrative, Legal, Engineering, and 2,900,000 2,900,000 1,700.000
Consulting Fees
Housing Development Account 5,000,000 5,000,000 5.000.000
Property Acquisition of Multi-family Units
Rehabilitation of Multi-Family Units
Acquisition of Blighted Single Family Housing
Rehabilitation of Blighted Senior Housing
Contingency 1,000,000 0 1.000.000
Other Increment Refund 376,000
Total Estimated Project Costs 80,900,000 80,900,000 80,900.000
Any funds to 6e expended far off-site improvements outside the boundaries of District No. 3,
but within the boundaries of Housing Development and Redevelopment Project No. 1, would be
less than 25 percent of total tax increment generated by District No. 3, including administrative
costs, provided that tax increment deposited in the housing development account may be spent
on eligible housing activities located anywhere in the City, as provided in the Special Act.
The Authoritv reserves the riaht to administrativelv adiust the amount of anv of the items
listed above or to incornorate additional eliaible items. so lona as the total estimated
public cost is not increased.
SPRINGSTED Page 1
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Brooklyn Center Economic Development Authority, Minnesota
I. Sources of Revenue
The major source of revenue to be used to finance public costs associated with the public
development projects in Housing Development and Redevelopment Project No. 1 is tax
increment generated as a result of the taxation of the land and improvements in Districf No. 03.
Tax increment financing refers to a funding technique that utilizes increases in valuation and
the property taxes attributable to new development to finance, or assist in the financing of public
development costs. Additional sources of revenue may include but are not limited to
investment income and land sales. This does not preclude the City, the Authority, or the
developer from using other funds, at its discretion, to pay such costs.
Estimated Sources of Revenue
ORIGINAL MODIFIED MODIFIED
11-8-04
Tax Increment revenue $48,069,393 48,069,393 48.069.393
Interest on invested funds 1,030,607 1,030,607 1.500.607
Bond proceeds 29,000,000 29,000,000 29.000,000
Loan proceeds 0 0 0
Sales/Lease Proceeds 2,800,0000 2,800,000 2.330.000
Special assessments 0 0 0
Loan/Advance Repayments 0 0 0
Grants 0 0 0
Other 0 0 0
Transfers In 0 0 0
Total 80,900,000 80,900,000 80.900.000
SPRINGSTED Page 2
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EDA Agenda Item No. 4c
,V=:�
Member introduced the following resolution and moved its
adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF TAX 1NCREMENT
PLEDGE AGREEMENT
A. WHEREAS, the Brooklyn Center Economic Development Authority,
Minnesota ("Authority") has heretofore established its Tax Increment Financing District No. 3
(the "T� Increment Financing District") within its Housing Development and Redevelopment
Project No. 1; and
B. WHEREAS, the City Council of the City of Brooklyn Center has adopted
a resolution awarding the sale of the City's Taxable General Obligation Tax Increment Bonds,
Series 2004D (the "Bonds"), to provide funds to finance certain public redevelopment costs
within the Tax Increment Financing District (the "Project").
C. WHEREAS, it is necessary and desirable that the City and the Authority
enter into a tax increment pledge agreement pursuant to which the Taa� Increments derived from
the Tax Increment Financing District will be pledged to the Bonds.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
t Brooklyn Center Economic Development Authority, as foilows:
1. Authorization to Execute. The Tax Increment Pledge Agreement, a form
of which agreement is now on file in the office of the Authority, is hereby approved in
substantially the form submitted to the Authority. The Chair and Secretary are authorized and
directed to execute the same on behalf of the Authority.
2. Filin�. The Secretary is directed to file a fully executed copy of the Tax
Increment Pledge Agreement with the County Auditor of Hennepin County pursuant to
Minnesota Statutes, Section 469.178, Subdivision 2.
November 8. 2004
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.
RESOLUTION NO.
STATE OF MINNESOTA
COUNTY OF HENNEPIN
BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY
I, the undersi ned, bein the dul ualified and actin Secretar of the Bro
okl
g g Y q g Y Yn
Center Economic Development Authority, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes of a meeting of the Board of
Commissioners of said Authority held on the date indicated therein with the original thereof on
file in my office, and the same is a full, true and complete transcript therefrom insofar as the
same relates to a resolution authorizing execution of a Tax Increment Pledge Agreernent.
WITNESS my hand as Secretary this day of 2004.
Secretary
TAX 1NCREMENT PLEDGE AGREEMENT
THIS AGREEMENT, entered into as of the 1 st day of December, 2004, by a.nd
between the City of Brooklyn Center, a Minnesota municipal corporation, herein called the
"City", and the Brooklyn Center Economic Development Authority, a public body corporate and
politic created and existing under the provisions of Minnesota Statutes, Sections 469.090 to
469.1082, herein called the "Authority", witnesseth tha.t:
A. WHEREAS, the Authority has heretofore established its Tax Increment
Financing District No. 3(the "Tax Increment Financing District") within its Housing
Development and Redevelopment Project No. 1; and
B. WHEREAS, the City Council of the City of Brooklyn Center has adopted
a resolution (the "Bond Resolution") awarding the sale of the City's Taxable General Obligation
Tax Increment Bonds, Series 2004D (the "Bonds") to provide funds to finance the acquisition,
demolition, clearance and site preparation in target redevelopment areas within the Authority's
Tax Increment Financing District (the "Project"); and
C. WHEREAS, the Project benefited the Authority and were made by the
City at the request of the Authority; and
D. WHEREAS, it is necessary and desirable that the City and the Authority
enter into a tax increment pledge agreement pursuant to which a portion of the Tax Increments
will be pledged to the Bonds.
NOW, THEREFORE, the City and the Authority, each in consideration of the
mutual covenants and agreements herein contained, covenant and agree as foliows:
1. Pled�e of Tax Increments: Covera�e Test. The Authority pledges to the
payment of the Bonds, Tax Increments in an amount equal to 105% of the debt service on the
Bonds.
2. Remittance; Se�re�ation: Reservation of Riehts. All pledged tax
increments shall be remitted directly to the City and the City, acting as agent of the Authority,
sha11 segregate all tax increments so received in a special account on its official books and
records. The Authority reserves the right to alter the pledge of tax increments as set forth in the
Resolution.
3. Filin�: Comnutation and Collection. An executed copy of this Agreement
shall be filed with the County Auditor of Hennepin County and shall constitute the request and
authorization of the Authority and the City to the County Auditor and Treasurer to compute and
collect the T� Increments in accordance with the provisions of this Agreement and Minnesota
Statutes, Section 469.177 and to remit the same to the Authority.
IN WITNESS WHEREOF, the City and the Authority have caused this
Agreement to be duly executed on their behalf, and such signatures and seal to be attested, as of
the day and year first above written.
CITY OF BROOKLYN CENTER, MINNESOTA
By
Mayor
By
Manager
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BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY
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By
Chair
By
S ecretary
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EXHIBIT A
Bond Resolution
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