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HomeMy WebLinkAbout2002 06-10 EDAP ® EDA MEETING City of Brooklyn Center June 10, 2002 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. May 28, 2002 - Regular Session 4. Commission Consideration Items • a. Resolution Amending Development Agreement By and Between Economic Development Authority of Brooklyn Center and Johnco LLC -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 MAY 28, 2002 WEST FIRE STATION — TRAINING ROOM 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order at 8:02 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness, Commissioners Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: City Manager Michael McCauley, Assistant City Manager Jane Chambers, Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Nelson, seconded by Commissioner Peppe to approve the agenda and consent agenda with the addition of 4b, Motion to Approve Extension for Real Estate Closing on 69 and Brooklyn Boulevard from May 31, 2002, to June 11, 2002. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Nelson, seconded by Commissioner Peppe to approve the May 13, 2002, regular session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT AND APPROVING THE ASSIGNMENT OF DEVELOPERS'S RIGHTS TO CERTAIN TAX INCREMENT PAYMENTS 05/28/02 -1- DRAFT Executive Director Michael McCauley discussed that the EDA recently discussed an amendment to the Twin Lakes Business Park agreement and that this resolution would approve and authorize execution of a first amendment to the development agreement and approve the assignment of developer's rights to certain tax increment payments. The amendment would reflect the original amount of assistance that was contemplated before the tax law changes. The developer is paying the estimated level of real estate taxes, but the available increment is much lower due to the State's assumption of a portion of the real estate tax. The time frame for repayment of the notes would be therefore extended to pay off the notes. Councilmember Ricker questioned the first agreement and the timeframe for construction of Phase Three. Mr. McCauley informed the Commission that the amendment to the agreement is to provide financial stability of the project for Phase Three and suggested that Paul Hyde discuss the construction. Paul Hyde, Real Estate Recycling, addressed the Commission to discuss that things have just started to pick up after being slowed down by the events on September 11, 2001, and that they are actively marketing for their goal of yet this year to start construction. The Commission discussed the two tax increment revenue notes and the tax float rate. Mr. McCauley informed the Commission that any agreement can be amended and that there would be a public hearing required if there is a tax float rate. RESOLUTION NO. 2002 -08 • Commissioner Ricker introduced the following resolution and moved its adoption: RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT AND APPROVING THE ASSIGNMENT OF DEVELOPERS'S RIGHTS TO CERTAIN TAX INCREMENT PAYMENTS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Nelson. Motion passed unanimously. 4b. MOTION TO APPROVE EXTENSION FOR REAL ESTATE CLOSING ON 69 AND BROOKLYN BOULEVARD FROM MAY 31, 2002 TO JUNE 11, 2002 Mr. McCauley informed the Commission that it had been requested to change the closing date from May 31, 2002, to June 11, 2002, since the Planning Commission and the City Council have not approved the project. The developer has provided proof of financing; however, a contingency of the bank is that the City has approved the project. There is no unseen reason for this item to not be approved by the Planning Commission or the City Council and it is recommended to approve the extension of closing to June 11, 2002. 05/28/02 -2- DRAFT • A motion by Commissioner Lasman, seconded by Commissioner Nelson to approve the extension for real estate closing from May 31, 2002, to June 11, 2002. Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Ricker to adjourn the meeting at 8:13 p.m. Motion passed unanimously. President e 05/28/02 -3- DRAFT • EDA Agenda Item No. 4a • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialises DATE: June 5, 2002 SUBJECT: RESOLUTION AMENDING DEVELOPMENT AGREEMENT BY AND BETWEEN ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER AND JOHNCO LLC The Development Agreement with Johnco LLC, for the 69"' and Brooklyn Boulevard property, was approved by the EDA in February 2002. The Agreement contains a provision in Section 3.10 Developers Documents paragraph (c) (vii), which requires "Delivery to the Authority of the Letter of Credit required by Section 4.11 hereof, ". Section 4.11 was intentionally deleted from he Development Agreement but Section 3.10 paragraph • (c) (vii) incorrectly refers to it. It was not the intent of the Development Agreement to require a Letter of Credit and Section 3.10 paragraph (c) (vii) should be deleted from the Development Agreement. There are already provisions which provide for the reversion of the Development Property to the EDA if the Developer does not perform pursuant to the Development Agreement. Additionally there are financial guarantees which will be required for the public improvements and site improvements including landscaping, on the Development Property. A copy of e -mail correspondence to staff from the EDA's legal counsel relative to Section 3.10 paragraph (c) (vii) is included with this memorandum. A resolution has been prepared which would amend the Development Agreement with Johnco LLC by deleting Section 3.10 paragraph (c) (vii). Tom Bublitz - City of Brooklyn Center - Development Agreement with JohncoLLC Page r1 J From: "Michelle Waletzko" <mwaletzko @briggs.com> • To: < tbublitz @ci.brooklyn - center.mn.us> Date: 616/02 11:25AM Subject: City of Brooklyn Center - Development Agreement with JohncoLLC It has been brought to my attention that Section 3.10 of the above referenced Development Agreement requires the Developer to deliver, in connection with the real estate closing, the letter of credit required by Section 4.11 of the Agreement. When I prepared this Agreement, I was instructed to delete the requirement in Section 4.11 relating to the letter of credit. I inadvertently neglected to delete the reference to a letter of credit in Section 3.10 of the Agreement. I apologize for any confusion regarding this matter. If you have any questions, please give me a call. Mary Dyrseth 651- 223 -6625 mdyrseth @briggs.com CONFIDENTIALITY NOTICE: The information contained in this e -mail communication and any attached documentation may be privileged, confidential or otherwise protected from disclosure and is intended only for the use of the designated recipient(s). It is not intended for transmission to, or receipt by, any unauthorized person. The use, distribution, transmittal or re- transmittal by an unintended recipient of this communication is strictly prohibited without our express approval in writing or by e -mail. If you are not the intended recipient of this e -mail, ® please delete it from your system without copying it and notify the above sender so that our e -mail address may be corrected. Receipt by anyone other than the intended recipient is not a waiver of any attorney - client or work - product privilege. CC: "Mary Dyrseth" <mdyrseth @briggs.com> • Commissioner introduced the following resolution and • moved its adoption: EDA RESOLUTION NO. RESOLUTION AMENDING DEVELOPMENT AGREEMENT BY AND BETWEEN ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER AND JOHNCO LLC WHEREAS, the Economic Development Authority of Brooklyn Center approved a Development Agreement with Johnco LLC (Agreement) on February 12, 2002; and WHEREAS, Section 3.10(c) (vii) of the Agreement specifies that "Delivery to the Authority of the Letter of Credit required by Section 4.11 hereof," WHEREAS, Section 4.11 of the Agreement was intentionally deleted from the Agreement. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota as follows: I. Section 3.10(c) (vii) of the Agreement is hereby deleted from the Agreement. 2. The EDA Executive Director is hereby authorized to execute the Agreement as amended on behalf of the Economic Development Authority of Brooklyn Center. 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.