HomeMy WebLinkAbout1985 07-22 HRAMMINUTES OF THE PROCEEDINGS OF THE HOUSING AND
REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN
CENTER IN THE COUNTY OF HENNEPIN AND THE STATE
OF MINNESOTA
SPECIAL SESSION
JULY 22, 1985
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 7:04 p.m.
ROLL CALL
Chairman Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich
Theis. Also present were HRA Director Gerald Splinter, Finance Director Paul
Holmlund, Director of Planning & Inspection Ron Warren, Director of Public Works Sy
Knapp, City Attorney Richard Schieffer, Housing Coordinator Brad Hoffman, and
Deputy City Clerk Geralyn Barone.
INVOCATION
The invocation was offered by Pastor Edward Blomberg of Berean Free Church.
RESOLUTION NO. 85-06
Member Gene Lhotka introduced the following resolution and moved its adoption:
RESOLUTION APPROVING TWO (2) BROOKLYN CENTER HOUSING REHABILITATION GRANTS
The motion for the adoption of the foregoing resolution was duly seconded by member
Bill Hawes, 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. 85-07
Member Celia Scott introduced the following resolution and moved its adoption:
RESOLUTION APPROVING THE PURCHASE OF CERTAIN REAL PROPERTY IN THE CITY OF BROOKLYN
CENTER; AND AUTHORIZING THE EXECUTION OF A PURCHASE AGREEMENT
The motion for the adoption of the foregoing resolution was duly seconded by member
Bill Hawes.
Commissioner Lhotka asked if the Purchase Agreement included everything the City
desired, and the City Attorney stated that Attorney John Dean had been working with
the Housing Coordinator on the agreement. The Housing Coordinator stated the
agreement was drafted by the City Attorney and meets the needs of the City. Mayor
Nyquist remarked he was unclear on the actual purchase price, and asked if the final
price to the City includes unpaid taxes. The Housing Coordinator stated the total
price of the purchase including taxes is $2.1 million and $90,000 of that total is in
unpaid taxes and assessments. The HRA Director noted the assessments have been
levied on the property but are not overdue. Chairman Nyquist asked if the taxes for
the first half of 1985 have been paid, and the Housing Coordinator said taxes for
that period have only been paid on one parcel and not the other.
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Chairman Nyquist referred to Section 8 of the Purchase Agreement and asked if the
seller would enter into a lease or if the possession of the houses and the barn would
be gratis. The Housing Coordinator responded saying the seller would have gratis
access to the houses and barn for 36 months, and the lease will reflect such an
agreement. Chairman Nyquist asked if the seller will pay property taxes during the
time of the seller's possession of the buildings, and the Housing Coordinator stated
the seller would not pay taxes.
Commissioner Hawes referred to the letter dated July 18, 1985 addressed to the
Housing Coordinator from Von Feldt and Salmen, and asked if Item One in the letter is
referencing real estate taxes. The Housing Coordinator stated it is.
Commissioner Hawes referenced item two in the same letter and asked for further
clarification of the relocation. The Housing Commissioner stated relocation
benefits are available to the seller according to state and federal government
requirements. Commissioner Hawes asked what the relocation specifically applies
to, and the HRA Director said it applies to the seller. Commissioner Hawes asked
what type of insurance the seller would have to retain, and the Housing Coordinator
stated the seller has to maintain liability insurance while the City will have
liability for the buildings. Commissioner Hawes referred to Item Five in the same
letter and asked if a time limit has been set. The Housing Commissioner stated
limits are on the length of time for the lease of the property, and there is no life
estate to the seller or his heirs.
Chairman Nyquist questioned Item B on page three of the Purchase Agreement, and the
Housing Coordinator emphasized that the buyer has the option to cancel the Purchase
Agreement. Chairman Nyquist questioned the possibility of the seller not settling
a lawsuit, and the City Attorney stated the City could settle the lawsuit and deduct
the costs from the purchase price. Chairman Nyquist noted the agreement does not
specifically state this, and the City Attorney stated if the lawsuit is not settled
by the day of closing, then there would be no closing.
Commissioner Hawes referred to Item Six on pages three and four of the Purchase
Agreement and asked how the listed exceptions fit into the agreement. The Housing
Coordinator noted these are items the City can control but the seller has no control
over them. Commissioner Hawes referred to Item Eight on page four of the Purchase
Agreement, asking for clarification on which three houses the agreement refers to,
and the Housing Coordinator and HRA Director explained the locations of these
buildings.
Upon vote being taken on Resolution No. 85-07, the following voted in favor thereof:
Chairman Nyquist, Commissioners Lhotka, Scott, Hawes, and Theis; and the following
voted against the same: none, whereupon said resolution was declared duly passed
and adopted.
The HRA Director introduced a Resolution Approving the Redevelopment Program and
Tax Increment Plan. He noted changes to the plan, and stated the school district
has two options regarding fiscal disparities. The HRA Director recommended the
Housing and Redevelopment Authority to pass the plan with the option of capturing
fiscal disparities for the school district. The Housing Coordinator noted the
Housing and Redevelopment Authority must approve the plan and the City Council will
take a final action on it.
Commissioner Lhotka asked what the life of the plan is, and the Housing Coordinator
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stated the worst case is 15 to 17 years. Commissioner Lhotka noted the school board
indicates ten years as the life of the plan, and the Housing Coordinator responded
that this is an optimistic estimate. Commissioner Lhotka said that when ten years
was originally stated, he thought this was an accurate estimate and not an
optimistic one. The Housing Coordinator stated different assumptions were made
for each case and the worst case is a more conservative approach. Commissioner
Lhotka asked what date the numbers were last calculated, and the Housing
Commissioner stated they had been calculated on July 16, 1985• The HRA Director
noted the estimate of 15 to 17 years is conservative, and chances are the actual life
could shrink to ten years. Commissioner Lhotka asked if the City is committing to a
ten year plan, and the HRA Director responded that the City is committing to the
dollar amount stated in the plan.
Commissioner Theis asked at what point the school district will be made whole. The
Housing Coordinator stated it depends on the numbers used, but with a .575 mill rate
the pay back period is ten years. Commissioner Theis noted that after the
development district is complete it will not take long to pay back the school
district what they have lost in revenues. The HRA Director stated the school
district chose-the option of capturing the fiscal disparities because the money is
returned back to the school sooner.
Commissioner Lhotka asked the Director of Finance if he agreed with the estimates.
The Director of Finance stated he does not disagree with the figures presented by the
company preparing the report. Commissioner Lhotka asked the Director of Finance if
he has an opinion on this issue, and the Director of Finance stated he did not. He
added he is not a believer in this type of financing but does not disagree with the
numbers presented. Commissioner Lhotka asked the Director of Finance how he would
finance this project in another way, and the Director of Finance stated he would not
get involved in this type of project at all. The HRA Director noted the Director of
Finance has made-his point of view clear from the beginning of this project.
Commissioner Hawes asked if the State of Minnesota contributes to the school
district's levy. The HRA Director said there is a per pupil unit support level, and
the State contributes any difference between the mill levy and the per pupil
requirement.
RESOLUTION NO. 85-08
Member Bill Hawes introduced the following resolution and moved its adoption:
RESOLUTION APPROVING A REDEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN FOR THE
EARLE BROWN FARM REDEVELOPMENT PROJECT: REQUESTING THE BROOKLYN CENTER CITY
COUNCIL TO CONDUCT PUBLIC HEARINGS THEREON: AND RECOMMENDING APPROVAL OF THE PLANS
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.
ADJOURNMENT
There was a motion by Commissioner Scott and seconded by Commissioner Theis to
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 7:32 p.m.
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