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Home My WebLink About2001 12-10 EDAP EDA MEETING City of Brooklyn Center • December 10, 2001 AGENDA 1. Call to Order I 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. November 26, 2001 — Regular Session 4. Commission Consideration Item a. EDA 2002 Tax Lev and Budget get • 1. Resolution Establishing a Final Tax Capacity Levy for the Benefit of the City of Brooklyn Center Economic Development Authority for Fiscal Year 2002 2. Resolution Approving the Final Budget for the City of Brooklyn Center Economic Development Authority Pursuant to Minnesota Statutes Chapter 469 • Requested Commission Action: - Motion to adopt resolutions. b. Discussion of 69` and Brooklyn Boulevard Redevelopment . •Requested Commission Action: - Direction to staff. 5. Adjournment • EDA Agenda Item No. 3a • o 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 NOVEMBER 26, 2001 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 by President Myrna Kragness at 8:16 p.m. 2. ROLL CALL President Myrna Kragness, Commissioners Kay Lasman, Ed Nelson, and Tim Ricker. Commissioner Peppe was absent and excused. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, Public Works Director Diane Spector, 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 Nelson to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Lasman, seconded by Commissioner Nelson to approve the October 22, 2001, regular session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEM 4a. RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO SIGN BAILMENT AGREEMENT FOR DISPLAY OF BROOKLYN HISTORICAL SOCIETY ITEMS AT THE EARLE BROWN HERITAGE CENTER Executive Director Michael McCauley discussed that this resolution would authorize the Executive Director to sign a Bailment Agreement between the Economic Development Authority and the Brooklyn Historical Society that would provide coverage for the display of the items and a list of • items owned by the Society. 11/26/01 -1- DRAFT RESOLUTION NO. 2001-22 Commissioner Nelson introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO SIGN BAILMENT AGREEMENT FOR DISPLAY OF BROOKLYN HISTORICAL SOCIETY ITEMS AT THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Motion passed unanimously. 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Nelson to adjourn the meeting at 8:19 p.m. Motion passed unanimously. President • 11/26/01 -2- DRAFT e EDA Agenda Item No. 4a • • ie Memorandum Date: December 3, 2001 To: Michael J McCauley City Manager From: Douglas Sell Director of Fiscal and Support Services RE: EDA Resolutions — Property Tax Levy and Budget Adoption At its September 10, 2001 meeting, the City's Economic Development Authority (EDA) adopted a preliminary tax levy and preliminary budget for 2002. Review and discussion of the levy and budget for the EDA was by the Council and Financial Commission at several work session resulted in the recommendations contained in the attached resolutions. Through this process of review and comment, budgets and levies have been finalized. The attached resolutions reflect the determinations of the Council and Financial Commission. The first resolution sets the property tax levy for 2002 by the EDA on all taxable property • in the City. Authority for this tax is provided in Minnesota Statute Chapter 469. The preliminary tax levy adopted in September was $269,968. Following several tax court settlements, this tax capacity levy was reduced to $248,423 as the total market rate, and thereby tax capacity rate, over which the levy is spread was reduced. The second resolution is the recommended budget for the EDA for 2002. memMcCauley 121002.do c • Member introduced the following resolution and moved its • adoption: EDA RESOLUTION NO. RESOLUTION ESTABLISHING A FINAL TAX CAPACITY LEVY FOR THE BENEFIT OF THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2002 WHEREAS, Minnesota Statutes require that the final property tax levy be provided to the Hennepin County Auditor no later than December 28, 2001, for taxes payable in calendar year 2002. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, Minnesota that a special tax is hereby levied on all taxable real and personal property within the City of Brooklyn Center at the rate of 0.01813% of the total tax capacity value of real and personal property situated within the corporate limits of the City of Brooklyn Center that is not exempted by law. BE IT FURTHER RESOLVED that the property tax levied under this resolution be used for the operations and activities of the Economic Development Authority of the City of Brooklyn Center pursuant to Minnesota Statutes Chapter 469. • Date President The motion for adoption of the forgoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: whereupon said resolution was declared duly passed and adopted. r Member introduced the following resolution and moved its • adoption: EDA RESOLUTION NO. RESOLUTION APPROVING THE FINAL BUDGET FOR THE CITY OF BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY PURSUANT TO MINNESOTA STATUTES CHAPTER 469 WHEREAS, the Economic Development Authority of City of Brooklyn Center has considered the final budget for Fiscal Year 2002. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, Minnesota that appropriations for the Economic Development Authority are hereby adopted as follows: Economic Development Fund (EDA) Revenues Property Taxes $248,243 Less amount for uncollectable ($7,453) Miscellaneous Revenue $30,000 Transfers from HRA and CDBG Fund $433,687 • Total Economic Development Fund $704,657 Appropriations Economic Development Fund $237,076 Community Development Block Grant $242,294 Total Economic Development Fund $670,754 Date President The motion for adoption of the forgoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: whereupon said resolution was declared duly passed and adopted. • • EDA Agenda Item No. 4b • • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Brad Hoffinan, Community Development Director DATE: December 4, 2001 SUBJECT: Ronsam Development Agreement As you will recall, the EDA awarded the development rights to 69` and Brooklyn Boulevard to Ron Christenson and Sam Thorpe ( Ronsam) on February 26, 2001. On June 11, 2001 the EDA entered into a Development Agreement with Ronsam that required that they close on the property no later than September 1, 2001. On that date, I was informed by Mr. Christenson that they did not have their financing together and he requested an extension on the closing to November 1, 2001. At that time Ron Christenson assured me they would be able to resolve their financing issues and be able to close. The EDA approved an amendment to the original agreement on September 24, 2001. The amendment extended the closing date to no later than November 1, 2001. The developer has not been able to secure acceptable financing for the development and failed to close on November 1, 2001. On November 7, 2001 a Notice of Intent to terminate the agreement was served upon the developer. Under state law the developer has an additional 30 days, or until December 7, 2001, to cure the problem. At this time the developer has not done so. Following the execution of the original Development Agreement (6/11/01) the developer has communicated very little with staff and virtually nothing since the amendment was executed relative to his intentions and/or his progress securing the necessary financing for the development. Monday evening the EDA should give direction to the staff relative to the Commission's desires to proceed with the project. The other developer considered by the EDA last February is still interested in the site and would be prepared to go forward with developing the site this spring. I had a brief discussion with them to determine their interest pending the outcome of the Ronsam agreement. Westbrook has indicated that their financing is in place. A second option would be to direct staff to go back out with a RFP (5th time). It should be anticipated that the RFP option would delay development until late summer or fall. We will be prepared to discuss these two options with the EDA Monday evening. •