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HomeMy WebLinkAbout2001 10-22 EDAP EDA MEETING City of Brooklyn Center October 22, 2001 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 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. October 8, 2001 — Regular Session 4. Commission Consideration Item a. Resolution Authorizing the Acquisition of a Parcel of Real Property for Elimination of Blight and Redevelopment Purposes • 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 OCTOBER 8, 2001 CITY HALL 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Myrna Kragness at 7:52 p.m. 2. ROLL CALL President Myrna Kragness, Commissioners Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, Public Works Director Diane Spector, Fiscal and Support Services Director Doug Sell, 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 Peppe to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Lasman, seconded by Commissioner Peppe to approve the September 24, 2001, regular session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEM 4a. RESOLUTION APPROVING THE ACQUISITION OF REAL PROPERTY LOCATED AT 5912 CAMDEN AVENUE NORTH AND ACCEPTING SALES CONTRACT FOR SAID PROPERTY Executive Director Michael McCauley discussed that the property at 5912 Camden Avenue North has been a code enforcement problem for the past 25 years and that staff is recommending that the EDA purchase the property in order to perform the necessary clean up. 10/08/01 -1- DRAFT Commissioner Peppe questioned what would be done with the home on the property. Mr. • McCauley informed the Commission that the home would be demolished. Councilmember Lasman questioned what would be done once the home is demolished. Mr. McCauley informed the Commission that the land will be vacant and staff will research what will be in the best interest for land. Councilmember Nelson asked if the house had ever been placed on the market. Mr. McCauley discussed that he was not aware of it ever being placed on the market and explained that the market value established by the City Assessor for tax purposes is $90,300 and that the purchase price for the City if $95,000. Commissioners discussed the other four troublesome properties that were discussed in the memorandum from Community Development Director Brad Hoffman. Mr. McCauley informed the Commission that the purchase of this one home is brought on by the fact that the current owner is now elderly and physically incapable of addressing the problems associated with the clean up. President Kragness discussed that the Council established code enforcement and that they and the EDA Commission need to continue to abide. Commissioner Peppe stated that it is critical to continue on with enforcing code violations and that the purchase of this property would be a benefit to the City and help the market value in the neighborhood. RESOLUTION NO. 2001-19 Commissioner Peppe introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE ACQUISITION OF REAL PROPERTY LOCATED AT 5912 CAMDEN AVENUE NORTH AND ACCEPTING SALES CONTRACT FOR SAID PROPERTY The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Motion passed unanimously. 4b. RESOLUTION APPROVING DEVELOPMENT AGREEMENT WITH JERRY'S FOODS AND AUTHORIZING ACQUISITION AND CONDEMNATION OF 5801 XERXES AVENUE NORTH Mr. McCauley discussed that the proposed development agreement with Jerry's Foods had not been finalized and that it would be the recommendation of the Commission to approve the proposed drafted development agreement in substantially the form submitted. 10/08/01 -2- DRAFT • The Executive Director would be authorized to execute the development agreement on behalf of the EDA provided such fmal development agreement is in substantially the form set forth in the exhibits included with the packet materials. Mr. McCauley informed the Commission that if the proposed drafted development agreement is approved this evening, the Commission would be asked at the October 22, 2001, meeting to acquire the property. RESOLUTION NO. 2001-20 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION APPROVING DEVELOPMENT AGREEMENT WITH JERRY'S FOODS AND AUTHORIZING ACQUISITION AND CONDEMNATION OF 5801 XERXES AVENUE NORTH The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Peppe. Commissioner Nelson abstained from the vote. Motion passed. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Peppe to adjourn the meeting at • 8:03 p.m. Motion passed unanimously. President • 10/08/01 -3- DRAFT EDA Agenda Item No. 4a OMT City of Brooklyn Center A Millennium Community To: Mayor Kragness and it Members Lasman, Nelson, Peppe, and Ricker From: Michael J. McCauley City Manager Date: October 18, 2001 Re: Eminent Domain to acquire Jerry's New Market Since the October 8 meeting, technical revisions have been drafted and discussions continue on the final language for a development agreement. We will be meeting on Friday, October 12 with Jerry's New Market representatives on language. If we can finalize the development agreement, we will proceed with the resolution authorizing eminent domain. If not, we may request that the resolution be tabled. 6301 Shingle Creek Parkway Recreation and Community Center Phone & TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall & TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OF A PARCEL OF REAL PROPERTY FOR ELIMINATION OF BLIGHT AND REDEVELOPMENT PURPOSES WHEREAS, the Brooklyn Center Economic Development Authority (the "EDA'), a body corporate and politic organized and . existing under the laws of the State of Minnesota, has the power to engage in development and redevelopment activities pursuant to Minn. Stat. §§ 469.090 to 469.018 and related statute; and WHEREAS, there has been duly adopted and is now in legal effect a Modified Redevelopment Plan for Housing Development and Redevelopment Project No. 1, which was initially adopted by the Brooklyn Center Housing and Redevelopment Authority and the Brooklyn Center City Council on July 22, 1985, which initial plan has been subsequently modified and amended by various resolutions; and WHEREAS, there is a parcel of real property in the City of Brooklyn Center with a street address of 5801 Xerxes Avenue North and which is legally described as Tract B, Registered Land Survey No. 1262, Files of the Registrar of Titles, Hennepin County, Minnesota • (the "Property"); and WHEREAS, the Property consists of a land area of approximately 210,698 square feet on which is located an older retail store of only approximately 33,000 square feet. The store building is presently and for some time has been unoccupied. Staff from the EDA and the City of Brooklyn Center's Building Official have recently toured the Property and have personally observed the dilapidation, obsolescence, faulty arrangement, and deteriorating condition which is present at the Property, all of which cause the Property to be blighted and a blighting influence and which is described in more detail in the Staff Report of even date herewith; and WHEREAS, according to the Hennepin County Assessor's Office, the improvements at the Property have a market value of only $100,000 and the EDA staff has recently been provided with an estimate that it will cost in excess of one -half million dollars for repairs to the leaking roof alone; and that expensive repairs are also needed to the HVAC system, the building's exterior shell, for landscaping and parking lot improvements, and for other costs and expenses which would be necessary to restore the building on the Property to a condition in which a tenant would be willing to occupy the building on the Property; and WHEREAS, the Property is located in an area of significant public and private investment, which investment is negatively impacted by the continuing presence of the deteriorated improvements on the Property. According to the EDA staff, the Property is not being used for its highest and best use which is for demolition, clearance, and new development; and • RESOLUTION NO. WHEREAS, the ownership of the property is such that it is divided between a fee owner and two longer term leases and the present divided ownership appears to be one of the reasons why no redevelopment has occurred to date, despite the significant improvements made in the surrounding area; and WHEREAS, the EDA has determined and believes based upon the report of its staff and the determination of its Board of Commissioners that the demolition, clearance, and redevelopment of the Property is in the best interests of the EDA and the City of Brooklyn Center, and will assist in improving the health, safety, and welfare of the residents of the City of Brooklyn Center, and is in accordance with the public purpose and provisions of all applicable state and local laws. NOW, THEREFORE, the Brooklyn Center Economic Development Authority, in view of the foregoing determinations which are hereby adopted as findings of fact, hereby resolves as follows: 1. The EDA hereby determines that it is in the public interest and is necessary for purposes of eliminating a blighting influence and to provide a site for future redevelopment, for the EDA to acquire through negotiation with the property owner or by eminent domain the Property as described above. 2. The acquisition of the Property is hereby determined to be necessary to . eliminate a blighting influence, to carry out a redevelopment project, and to fulfill the goals and objectives of the Redevelopment Plan for Housing Development and Redevelopment Project No. 1. 3. The acquisition of the Property is reasonably necessary for and fulfills the public purpose of removing and eliminating a blighting influence and providing a site for future redevelopment, which in turn will result in an increase in the tax base, all of which will result in an improvement in the health and welfare of the citizens of Brooklyn Center. 4. For the reasons set forth herein and in the materials prepared by staff, the EDA hereby deems it necessary to proceed without delay under Minn. Stat. § 117.042 and to pay to the owners or into the District Court a sum of money to secure compensation to the owners of interests in the Property, which amount shall be equal to the petitioner's approved appraisal of value as determined by the executive director of the EDA and legal counsel. The EDA hereby specifically authorizes its executive director to oversee and its legal counsel to acquire the Property pursuant to the provisions of Minn. Stat. § 117.042, and use the "quick take" procedure in acquiring title to the Property. 5. Because of the above determination to acquire the Property by the use of • the power of eminent domain, the EDA hereby directs its staff to enter into a contract for legal services with the law firm of Briggs and Morgan, P.A., RESOLUTION NO. and hereby authorizes Briggs and Morgan as its legal counsel to undertake all actions and do all things necessary and required for the EDA to acquire the Property by use of the power of eminent domain. 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: where upon said resolution was declared duly passed and adopted.