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HomeMy WebLinkAbout2010 01-11 EDAP EDA MEETING City of Brooklyn Center January 11, 2010 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) one motion. There will be no separate ) and will be enacted b Y 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 1. December 14, 2009 — Regular Session 4. Commission Consideration Items a. Resolution Electing Officers for the Economic Development Authority in and for the City f Brooklyn Center Y Y Requested Commission Action: — Motion to adopt resolution. b. Report on Acquisition of 6025 Brooklyn Boulevard Requested Commission Action: — Motion to receive report. 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 DECEMBER 14, 2009 CITY HALL — COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:28 p.m. 2. ROLL CALL President Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were Executive Director Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, Police Chief Scott Bechthold, City Attorney Charlie LeFevere, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Roche moved and Commissioner Yelich seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. November 23, 2009 — Regular Session 2. November 23, 2009 — Executive Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2009 -19 APPROVING THE FINAL BUDGET FOR THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2010 Executive Director Curt Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. • 12/14/09 -1- DRAFT Commissioner Ryan moved and Commissioner Lasman seconded adoption of RESOLUTION . NO. 2009 -17 Approving the Final Budget for the City of Brooklyn Center Economic Development Authority for Fiscal Year 2010. Motion passed unanimously. 5. ADJOURNMENT Commissioner Roche moved and Commissioner Lasman seconded adjournment of the Economic Development Authority meeting at 7:29 p.m. Motion passed unanimously. • 12/14/09 -2- DRAFT EDA Agenda Item No. 4a COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk DATE: January 4, 2010 SUBJECT: EDA Resolution Electing Officers for the Economic Development Authority in and for the City of Brooklyn Center Recommendation: It is recommended that the Economic Development Authority consider adoption of EDA Resolution Electing Officers for the Economic Development Authority in and for the City of Brooklyn Center. Background: Minn. Stat. 469.096 provides that an Economic Development Authority shall elect a president, treasurer, and secretary on an annual basis. EDA Resolution No. 87 -06 also states in Article II, Section 7, that the president, vice - president, secretary, treasurer, and assistant treasurer shall be elected at the annual meeting of the Authority and shall hold office for one year or until . successors are elected and qualified. The attached EDA resolution elects such positions for the Economic Development Authority. Budget Issues: There are no budget issues to consider. Attachments • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER WHEREAS, Minnesota Statutes Section 469.096 provides that an economic development authority shall elect a president, treasurer, and secretary on an annual basis. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City Council of the City of Brooklyn Center, Minnesota, that the Authority hereby elects the following officers to serve through December 31, 2009, or such later date as their successors are elected and qualified: President /Treasurer Tim Willson Vice - President Kay Lasman Assistant Treasurer Daniel Jordet Secretary Gary Eitel January 11, 2010 Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner j 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 Agenda Item No. 4b • EDA COUNCIL ITEM MEMORANDUM DATE: January 11, 2010 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development' SUBJECT: Acquisition of 6025 Brooklyn Boulevard. COUNCIL ACTION REQUESTED: The EDA is requested to receive the report on the use of the Remove and Rebuild Program to acquire the foreclosed and vacant property at 6025 Brooklyn Boulevard, pursuant to the provisions of EDA Resolution No. 2009 -17 BACKGROUND: On October 26, 2009, the EDA adopted Resolution No. 2009 -17, A Resolution Authorizing Authoritv Staff to Acauire Certain Foreclosed Homes Within the City and to Execute All. Instruments and Contracts Related Thereto. The resolution established criteria which would enable the Executive Director, with the • assistance of the EDA's legal counsel, to enter into purchase agreements and acquire on behalf of the EDA up to 10 single family, vacant, foreclosed properties. A condition of the resolution required that the Executive Director shall report the acquisition of any Property to this Resolution at the next regular EDA meeting. The property was purchased for $74,900 with funds from the Remove and Rebuild Program. The closing occurred on December 31, 2009 REMOVE AND REBUILD PROGRAM: On January 12, 2009, the EDA adopted Resolution No. 2009-02,, Housing Programs and Annrovine the Use of Funds from Tax Increment District No. 3 Housing_ Account" which authorized the Remove and Rebuild Program The program was created to remove blighted, distressed, and unmarketable properties and to return theses properties to an enhanced and compatible use with the neighborhood and consistent with zoning regulations and the City's Comprehensive Plan. Additionally, the program recognized that if an appropriate use for the land is not imminent, the property will be land banked until such time an appropriate use becomes available. • This program has also been used to acquire the following properties: 5301 James Ave. - 5836 Brooklyn Boulevard - 6045 Brooklyn Boulevard 6025 Brooklyn Boulevard: The Hennepin County Tax Records identified the property owner of 6025 Brooklyn Boulevard as Federal Home Loan Mortgage Corporation as the owner and taxpayer. The 2009 property tax value is shown at $151,100 A review of the City records shows the following sales data: 2007 $185,000 2003 $167,897 The property has 75' of frontage on Brooklyn Boulevard with an effective lot width of 87' and an effective lot depth of 142' and a lot area of 9,524 sq.ft. The tax records indicate that the residence was built in 1955. The property is zoned R -1 Single Family Residential. The lot adjoining 6025 Brooklyn Boulevard also was a vacant foreclosed home; however, . before the EDA could process a purchase agreement, an offer was accepted. The property closed on September 29, 2009 with a reported sales price of $63,000. A rental license application for this property was submitted on December 10, 2009 and is being processed at this time. The attached map illustrates the location of this property. The property at 6037 Brooklyn Boulevard is zoned R -5 and developed as the Northbrook Apartments, an 11 unit apartment built in 1961. The corner lot, 6045 Brooklyn Boulevard, was acquired by the EDA on October 30, 2009 The Land Use and Transportation Elements of the City's Comprehensive Plan and the P t3' P Brooklyn Boulevard Corridor Streetscape Amenities Study have identified the benefits of replacing the single family homes on Brooklyn Boulevard with attractive non - residential land uses that promote public safety and protect adjoining residential neighborhoods. Staff is recommending that the residence be removed in the spring and that the City work with Hennepin County on the closure of the driveway access onto Brooklyn Boulevard (Co. Rd. 152). The interim land use of this property would be vacant /open space, pending further review and discussions with Hennepin County on updating the Brooklyn Boulevard Streetscape Study and further land use planning and visioning for this portion of the Boulevard corridor and the Kylawn Neighborhood area. • The future demolition cost is estimated at approximately $15,000 - $18,000. BUDGET ISSUES: The acquisition cost of $74,900 and the future demolition costs for this property are being funded by the Housing Account from Tax Increment District No. 3 • LOGISMap Output Page Page I of 1 6138 . . . ............ — 6136 V37 • LAWRENCE RD 6124 20 3zia wi 61te -b'77n slot U LA % m 13D7 22 Z2 Waniptad Park ,-IaT AVE N nse 3312 6040 aom WAS) z Lj 6042 61ST AVE N Vol sror J7 37 33-'s 6031 "I U 310t 6m4 22 6019 3722 i 3.w 3100 3618 V-12 w 22 6W4 COMMODORE DR 601S ,4 sm9 6913 1707 3w? 6W2 Coot COW AVE N . .... - - — ----- s i 5R11 r 59x9 W-3 ADMIRAL LN N . . . . . ....... S236 --2w 5932 0. —24111 SV14 fise . . 5%z STA http://gis.logis-org/LOGIS 1/7/2010 • Ka Lasman introduced the following resolution and Commissioner Y g moved its adoption: EDA RESOLUTION NO. 2009 -17 RESOLUTION AUTHORIZING AUTHORITY STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO EXECUTE ALL INSTRUMENTS AND CONTRACATS RELATED THERETO WHEREAS, the Economic Development Authority of Brooklyn Center ( "EDA ") has established various housing programs including its Remove and Rebuild Program, an acquisition and demolition program to remove blighted, distressed and unmarketable properties and return the properties to an enhanced condition and use, compatible with the neighborhood (the "Program "); and WHEREAS, the Program is funded with funds from the Tax Increment District #3 ( "TIF Funds "); and WHEREAS, in order to expand the effectiveness of the Program, the EDA wishes to directly purchase certain foreclosed properties to demolish and hold the lots for future development, rehabilitate or resell to private entities for development or rehabilitation; and . WHEREAS, it is the desire of the EDA to establish certain standards and conditions for such acquisitions and to authorize its Executive Director to proceed therewith without specific EDA approval of each transaction. i NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center: 1. That the Executive Director, with the assistance of EDA's legal counsel, is hereby authorized to enter into purchase agreements and acquire in the name of the EDA up to ten (10) single family, vacant, foreclosed homes (the "Properties') on the conditions that: a. All properties are registered as vacant properties with the City of Brooklyn Center; and b. The Properties are each acquired with Neighborhood Stabilization Program Stabilization Program ( "NSP') Funds or TIF Funds, and are eligible for use of such funding; and C. Each property is a foreclosed property acquired from a lender or a lender's designee; and d. The Properties have been vacant for at least 30 days prior to entering into a purchase agreement; and • EDA RESOLUTION NO. 2009 -17 e. The Property is determined to be blighted as defined by the Minnesota Housing Finance Agency in its application to the US Department of Housing and Urban Development (HUD) for NSP funding as follows: A blighted structure is one which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light, and sanitary facilities, excessive land coverage, deleterious land use, or obsolete layout, or any combination of these or other factors, is detrimental to the safety, health, morals, or welfare of the community: and f. The purchase price is not more than 65 percent of Hennepin County's latest Estimated Market Value for the Property and does not exceed $80,000; and g. Prior to the acquisition of each property, staff conducts appropriate due diligence to protect the EDA's interest. 2. That for purposes of this resolution, "single family" includes any property with fewer than three units. • 3. That the Executive Director is authorized to execute such documents as shall be required in order to carry out the delegation provided in paragraph 1 hereof. 4. That the Executive Director shall report the acquisition of any Property pursuant to this Resolution at the next regular EDA meeting. 5. That disposition of acquired Properties shall be only by action of the EDA. 6. That the authority to enter into new purchase agreements granted hereby shall expire twelve (12) months from the date of this Resolution. October 26, 2009 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Dan Ryan and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Kay Lasman, Tim Roche, Dan and Mark Yelich; and the following voted against the same: none; . whereupon said resolution was declared duly passed and adopted.