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HomeMy WebLinkAbout1983 04-11 HRAMMINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKL)IN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL, SESSION APRIL 11, 1983 CITY HALL CALL TO ORDER The Brooklyn Center Housing and Redevelopment Authority met in special session and was called to order by Chairman Dean Nyquist at 7:02 p.m. ROLL CALL Chairman Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were BRA Director Gerald Splinter, Director of Public Works Sy Knapp, Director of Planning & Inspection Ron Warren, City Attorney Richard Schieffer, Assistant City Engineer Jim Grube, and Administrative Assistant Tom Bublitz. INVOCATION `The invocation was offered by Mr. Steve Swindon, Campus Minister for the Brooklyn Center Church of Christ. APPROVAL OF MINUTES - MARCH 14, 1983, MARCH 28, 1983 There was--a motion by Commissioner Lhotka and seconded by Commissioner Scott to approve the minutes of the March 14, 1983 Housing and Redevelopment Authority meeting as submitted. Voting in favor: Chairman Nyquist, Commissioners Lhotka, Scott, and Hawes. Voting against: none. The motion passed. Commissioner Theis abstained from the vote as he was not present at the March 14, 1983 meeting. There was a motion by Commissioner Hawes and seconded by Commissioner Theis to approve the minutes of the March 28, 1983 Housing and Redevelopment Authority meeting as submitted. Voting in favor: Chairman Nyquist,, Commissioners Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. PUBLIC HEARING REGARDING DISPOSITION OF PROPERTY BY THE BROOKLYN CENTER HOUSING AND REDEVELOPTIENT AUTHORITY IN ACCORDANCE WITH MINNESOTA STATUTES, SECTION 462.525 OF THE I101U PAL HOUSING AIt?D REDE1rELOPD MT AUTHORITY ACT, MINNESOTA STATUTES, CHAPTER 462.411 ET. SEQ. The BRA Director introduced a series of resolutions and explained to the Housing Authority that the passage of the resolutions is required after the public hearing is held. Chairman ITyquist opened the meeting for the purpose of a Public Hearing Regarding Disposition of Property by the Brooklyn Center Housing and Redevelopment Authority in Accordance with Minnesota Statutes, Section 462.525 of the Municipal Housing and Redevelopment Authority Act, Minnesota Statutes, Chapter 462.411 et. seq. He inquired if there was anyone present who wished to speak at the public hearing. The BRA Director briefly reviewed the project, including the location and the number and type of units proposed for development. Mayor Nyquist inquired whether anyone else wished to speak at the public hearing. No one appeared to speak and he entertained a motion to close the public hearing. 4-1I-83 _I_ There was a motion by Commissioner Scott and seconded by Commissioner Hawes to close the public hearing. Voting in favor: Chairman Nyquist, Commi.ssioners'Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. RESOLUTION NO. 83-8 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING AND DESIGNATING A HOUSING DEVELOPMENT PROJECT BY THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY PURSUANT TO THE PROVISIONS OF MINNESOTA'STATUTES, 462.411 ET. SEQ. The motion for the adoption of the foregoing resolution was duly seconded by member Gene Lhotka, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed.and adopted. RESOLUTION NO. 83-9 Member Rich Theis introduced the follow ng resolution and moved its adoption: RESOLUTION APPROVING THE DISPOSITION OF PROPERTY BY THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis, and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. The HRA Director introduced a Resolution Authorizing Execution of Contract for Private Development by and between the Housing and Redevelopment Authority in and for the City of Brooklyn Center and Brutger Companies, Inc. ChairmanNyquist recognized Ms. Barb Portwood, of the law firm of Holmes & Graven, who reviewed the contract between the Brooklyn Center BRA and Brutger Companies., Inc. She pointed out several protections built into the contract for the BRA. She explained the developer will be required to submit a letter of credit in the amount of $125, 000 and the BRA will also review the marketing plans prior to construction of the project. With regard to the marketing plan, Ms. Portwood pointed out that the developer would be required to pay between $2,000 to $4,000 per unit to the HRH if the units cannot be marketed to individuals 55 and older. Ms. Portwood continued to review the stipulations of the contract and pointed out that Brutger Companies, Inc. guarantees the tax increment required by tie City to make the project work. She also explained that insurance would be paid by Br+.ztger Companies, Inc. if the units were completely destroyed and not rebuilt. She also noted that the BRA can retake the property if the project is not built, and that upon completion of the rental units Brutger Companies, Inc. agrees to the assessment rate necessary for the tax increment financing and agrees not to contest the assessed value. Commissioner Theis requested a clarification of the assessment agreement. Ms. Portwood pointed out that the assessment agreement provides that the developer guarantees enough money for the tax increment financing to payoff the project. She 4-11-83 -2- added that additionally, regardless of how the assessor assesses the property the developer cannot challenge the assessed value if it would create a short fall foi- the tax increment financing. Discussion continued regarding the issues of financing, and the BRA Director explained that the estimate on the project is that the tax increment will pay off the project cost within 12 to 15 years. He added that this is a conservative estimate which does not allow for any inflation, and that the obligations could and will likely be paid off earlier. Commissioner Lhotka requested additional information on the marketing plan. The BRA Director explained that the HRA can approve or can authorize the BRA Director to approve the marketing plan after the HRA has reviewed it. He added that, if the units are not marketed to individuals 55 and over, the developer will be required to pay between $2,000 and $4,000 per unit. He explained thisrange is given because the final condemnation costs on the project are not known.' Commissioner Lhotka' then inquired what the total cost of the City would be for the project. The BRA Director explained the tax increment will repay the bonds sold. for the project at a cost of $850,000 to $900,000. He pointed out that this includes the principal and interest which will be paid by the tax increment. He added that there are no out of pocket costs to the City.. He added that the project "receives the tax increment created by the new development, and that the tax increment does not go to other taxing jurisdictions but they continue to receive the same amount of taxes from the tax increment district as they had been receiving prior to construction of the project. Commissioner Theis inquired if there were any stipulations in the contract regarding the use of local labor on the project. The BRA Director explained there is a nondiscrimination provision in the contract, and that he believes the contractor will generally tend to work with local people if at all possible. He explained the construction schedule provides occupancy nine months 'after the beginning of construction. Commissioner Hawes inquired whether the sales of the units would be open to any realtors. The HRA Director explained the developer will select one realtor to market the townhouses and condominiums but with regard to the resale of single family homes there would be no restrictions on choices of realtors. He added that ' the developer will guarantee a purchase price if the single family home cannot be sold in any other way. RESOLUTION NO. 83-10 Member Bill awes introduced the following resolution and moved its adoption: RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ' IN AND FOR THE CITY OF BROOKLYN CENTER AUTHORIZING THE EXECUTION OF A CONTRACT FOR PRIVATE DEVELOPMENT The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene'Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same none, whereupon said resolution was'declared duly passed and adopted, RESOLUTION NO. 83-11 Member Gene Lhotka introduced the following resolution andmoved its adoption: 4-11-83 -3- RESOLUTION OF THE HOUSING AT-'D REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AUTHORIZING THE CITY TO UNDERTAKE THE CONSTRUCTION OF PROJECT IMPROVEMFNTES The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 83-12 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING A TIIPORARY IMPROVEMENT LOAN FROM THE CITY OF BROOKLYN CENTER INVESTMENT FUND The motion for the adoption of the.foregoing resolution was duly seconded by member Bill Hw es, and upon vote being taken thereon, the following voted in favor thereof : Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 83-13 Member Gene I,hotka introduced the following resolution and moved its adoption: RESOLUTION APPROVING THREE (3) BROOKLYN CENTER HOUSING REHABILITATION GRANTS The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. ADJOURNMENT There was a motion by Commissioner Theis and seconded by Commissioner Hawes tc adjourn the meeting. Voting in favor: Chairman Nyquist, Commissioners Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. The Brooklyn Center Housing and Redevelopment Authority adjourned at 7:35 P.M. 4-11-83 -4-