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HomeMy WebLinkAbout2003 09-08 EDAP I EDA MEETING • City of Brooklyn Center September 8, 2003 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. August 11, 2003 - Regular Session 4. Commission Consideration Items • a. Public Hearing Regarding the Sale of Certain EDA Owned Property Located at 5900 Emerson Avenue North and 5912 Camden Avenue North in Brooklyn Center, Minnesota, Pursuant to Minnesota Statutes, Section 469.012, Subdivision 7 and Section 469.029 -Requested Commission Action: -Open the public hearing -Take public input. - Continue the public hearing to September 22, 2003. b. Resolution Calling for a Public Hearing on a Proposed Business Subsidy for Global Hennepin County Properties Project - 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 AUGUST 11, 2003 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 8:00 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, Director of Public Works /City Engineer Todd Blomstrom, Community Development Specialist Tom Bublitz, 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 July 28, 2003, regular session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION CALLING FOR A PUBLIC HEARING REGARDING THE SALE OF CERTAIN EDA OWNED PROPERTY LOCATED AT 5900 EMERSON AVENUE NORTH AND 5912 CAMDEN AVENUE NORTH IN BROOKLYN CENTER, MINNESOTA, PURSUANT TO MINNESOTA STATUTES, SECTION 469.012, SUBDIVISION 7 AND SECTION 469.029 Executive Director Michael McCauley discussed that the EDA had received four proposals for the development of single - family homes located at 5900 Emerson Avenue North and 5912 Camden S Avenue North. All of the proposals lacked some of the information requested or required clarification of information submitted. 08/11/03 -1- DRAFT A request for supplemental information was faxed to the four individuals that had submitted • proposals. Based on the initial proposals and the supplemental information, the proposals received have been evaluated by staff. Community Development Specialist Tom Bublitz addressed the Commission to outline the proposals received from Twin View Development, Armstrong Construction, and Exceptional Homes, Inc. The fourth proposal received from MEIK Construction Company was not discussed since they do not currently have a residential building contractor license. Mr. Bublitz informed that Twin View Development and Armstrong Construction have both built in Brooklyn Center. Exceptional Homes, Inc. had built in the City of Crystal. The City of Crystal indicated a positive experience with Exceptional Homes, Inc. President Kragness questioned the prices for the two homes. Mr. Bublitz informed that the price was not asked for in the proposal; however, he believes that the asking prices for the homes would be in the low $200,000. The Commission discussed their preferences. Commissioner Carmody was in favor of Exceptional Homes, Inc., Commissioner Lasman noted that Armstrong Construction met the specifications more clearly, Commissioner Niesen was in favor Exceptional Homes, Inc., and Commissioner Peppe was in favor of Exceptional Homes, Inc. Commissioner Lasman expressed that she did not have a problem with Exceptional Homes, Inc. and just wanted to make sure that the Commission was considering that Armstrong Construction had a more accurate proposal. • Mr. McCauley discussed that the Commission could set a date for the public hearing with Exceptional Homes, Inc. with a condition requesting suitable materials for the proposals. A motion by Commissioner Niesen to direct staff to work with Exceptional Homes, Inc. to get a completed evaluation and suitable materials of their proposal and to set date of public hearing on September 8, 2003. Seconded by Commissioner Peppe. Motion passed unanimously. Commissioner Lasman questioned if the Commission would be amenable to split the motion allowing Exceptional Homes, Inc. and Armstrong Construction each build a home. Commissioner Carmody expressed that she would prefer to have both homes built with Exceptional Homes, Inc.; however, she would be agreeable to use Armstrong Construction as a back up if Exceptional Homes Inc. does not comply with the additional materials required. RESOLUTION NO. 2003 -07 Commissioner Niesen introduced the following resolution and moved its adoption: RESOLUTION CALLING FOR A PUBLIC HEARING REGARDING THE SALE OF CERTAIN EDA OWNED PROPERTY LOCATED AT 5900 EMERSON AVENUE NORTH AND 5912 CAMDEN AVENUE NORTH IN BROOKLYN CENTER, MINNESOTA, PURSUANT TO MINNESOTA STATUTES SECTION 469.012 SUBDIVISION 7 AND SECTION 469.029 08/11/03 -2- DRAFT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Peppe. • Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Carmody to adj ourn the meeting at 8:19 p.m. Motion passed unanimously. President • I • 08/11/03 - -3 DRAFT • EDA Agenda Item No. 4a • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialist DATE: September 3, 2003 SUBJECT: Public Hearing on the Sale of Land at 5900 Emerson Avenue North and 5912 Camden Avenue North by the Brooklyn Center Economic Development Authority At the August 11, 2003, Economic Development Authority (EDA) meeting, the EDA approved • Resolution No. 2003 -07, Resolution Calling For a Public Hearing Regarding Certain EDA owned property located at 5900 Emerson Avenue North and 5912 Camden Avenue North in Brooklyn Center, Minnesota, pursuant to Minnesota Statutes Section 469.012, Subdivision 7, and Section 469.029. This resolution authorized a public hearing to be held on September 8, 2003, on the sale of the two single family lots to Exceptional Homes, Inc. Minnesota Statutes require that the EDA hold a public hearing on the terms and conditions of the sale of land. The terms and conditions of the sale will be set forth in the purchase agreement to be executed between the EDA and Exceptional Homes, Inc. Presently, EDA staff is in the process of negotiating the purchase agreement with Exceptional Homes, Inc. with the assistance of the EDA's attorney. To date, staff has not finalized the terms of the purchase agreement and staff is recommending that the EDA open the public hearing on September 8, 2003, and continue the public hearing to the regularly scheduled EDA meeting on September 22, 2003. EDA Agenda Item No. 4b i Additional memo for: EDA Agenda Item No. 4b MEMORANDUM TO: Michael McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: June 18, 2003 SUBJECT: Global Industries/ Shingle Creek & Freeway Blvd. Monday evening the EDA will be asked to call a public hearing for a proposed development on the northwest corner of Shingle Creek and Freeway Boulevard. The site is adjacent to the Americlnn. It is approximately 2.2 acres in size and has remained undeveloped primarily because of soil conditions. The site has a current market value of $610,000. A public hearing would be held September 22, 2003 to consider a subsidy (TIF) up to $300,000 to help with the soil remediation. Similar projects in the immediate are have encountered up to 25 feet of peat that needed to be removed and replaced. In addition, there is surplus material (earth) on the site from development of a previous owner. Soil corrections will • most likely exceed $300,000. Global Industries is one of the largest suppliers of business furniture in the world. Their clients include the White House. They are proposing to construct a minimum 25,000 square foot display /warehouse on the site. Prospective clients could view furniture settings in the display or office area. In the warehouse they would store furniture and assemble display items. Upon completion, the development would have a minimum value of $1,600,000. The actual value for tax purposes should be in excess of $2,000,000. The subsidy to the project is approximately 3.5 years of the taxes that would be generated by the development. The only previous development proposals that I can recall for this site have been a McDonalds and an Amoco station. Both concepts were considered to be unacceptable to previous Councils. No serious development proposal for this site has been offered or suggested in the last six (6) years. The Global Industries proposal is consistent with the comprehensive plan and the surrounding development. I will be available to discuss this development in greater detail Monday evening. • Commissioner introduced the following resolution and • moved its adoption: EDA RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSED BUSINESS SUBSIDY FOR GLOBAL HENNEPIN COUNTY PROPERTIES PROJECT WHEREAS, the Economic Development Authority (EDA) in and for the City of Brooklyn Center has received a proposal from Global Hennepin County Properties for a Business Subsidy to construct an approximately 25,000 square foot office and furniture warehouse; and WHEREAS, it is proposed that the EDA provide Global Hennepin County Properties approximately $300,000 of tax increment financing assistance. NOW, THEREFORE, BE IT RESOLVED by the EDA in and for the City of Brooklyn Center, Minnesota that the EDA hereby authorizes a public hearing to be held on September 22, 2003 at 7 p.m., or as soon thereafter as the matter may be heard, on a proposed Business Subsidy for Global Hennepin County Properties pursuant to the required published notice. 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. i • • NOTICE OF PUBLIC HEARING ON PROPOSED BUSINESS SUBSIDY FOR GLOBAL HENNEPIN COUNTY PROPERTIES PROJECT NOTICE IS HEREBY GIVEN that the Economic Development Authority (EDA) in and for the City of Brooklyn Center, Minnesota, will hold a public hearing on September 22, 2003, at a meeting of the Council beginning at approximately 7:00 p.m., in the City Hall located at 6301 Shingle Creek Parkway, in Brooklyn Center, Minnesota, on a proposed business subsidy for Global Hennepin County Properties, LLC ( "Global Hennepin County Properties ") under Minnesota Statutes, Section I I6J.993 through 116J.995 (the 'Business Subsidy Law "). It is proposed that the EDA enter into a Development Agreement with Global Hennepin County Properties, under which Global Hennepin County Properties would construct an approximately 25,000 square foot office and furniture warehouse. As an inducement, the EDA has agreed to provide Global Hennepin County Properties approximately $300,000 of tax increment financing assistance. Copies of the Development Agreement between the EDA and Global Hennepin County Properties, the proposed Business Subsidy Agreement, and a summary of the terms of the subsidy are available in the office of the Community Development Director. All persons may appear at the public hearing and present their views orally or in writing on the proposed subsidy. • • Summary of the Terms of the Citv of Brooklvn Center /Global Hennepin Countv Properties, LLC Business Subsidv The City of Brooklyn Center (the "City ") proposes to enter into a Development Agreement with Global Hennepin County Properties, LLC (the "Developer "). The basic terms and description of the subsidy under the Development Agreement are that the City would assist in financing the construction of a 25,000 square foot office and furniture warehouse facility by providing tax increment assistance to the Developer. This financing would result in a subsidy of approximately $300,000. The City believes that this assistance under the Development Agreement would constitute a "business subsidy," which is defined in Minnesota Statutes, Section 116J.993, Subdivision 3. The City estimates that the subsidy has a fair market value of $300,000. The proposed form of the Development Agreement and the proposed Business Subsidy Agreement between the City and Global Hennepin County Properties, LLC is available for inspection at the office of the Community Development Director. • • 15655550