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HomeMy WebLinkAbout2000 07-24 EDAP EDA MEETING City of Brooklyn Center • July 24, 2000 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. July 10, 2000- regular session b. Resolution Approving and Authorizing Execution of a Development Agreement with Real Estate Recycling for Additional Redevelopment -This item was tabled at the July 10, 2000, EDA meeting. - Requested Commission Action: - Motion to table to August 14, 2000 meeting. 4. Commission Consideration Items a. Resolution Approving First Amendment to and Assignment of Development Agreement By and Between the Brooklyn Center Economic Development Authority and PDHC Ltd. to DRF Dental Buildings LLC and Authorizing Execution of Closing Documents Regarding Sale of 6421 Brooklyn Boulevard - Requested Commission Action: - Motion to adopt resolution. b. Resolution Authorizing Acquisition of Certain Real Property by Purchase or Eminent Domain Proceedings - Requested Commission Action: - Motion to adopt resolution. 5. Adjournment i 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 JULY 10, 2000 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 8:25 p.m. 2. ROLL CALL President Myrna Kragness, Commissioners Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert Peppe. Also present: Executive Director Michael J. McCauley, Assistant City Manager Jane Chambers, Planning and Zoning Specialist Ron Warren, Public Works Director Diane Spector, City Attorney Charlie LeFevere, and City Clerk Sharon Knutson. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Lasman, seconded by Commissioner Peppe to approve the agenda and consent agenda passed unanimously. 3a. APPROVAL OF MINUTES A motion by Commissioner Lasman, seconded by Commissioner Peppe to approve the June 12, 2000, regular session Economic Development Authority minutes as printed passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH REAL ESTATE RECYCLING FOR ADDITIONAL REDEVELOPMENT Executive Director Michael McCauley requested that this item be tabled to the July 24, 2000, EDA meeting due to the upcoming July 19 special Council meeting regarding the realignment of France Avenue. He briefly reviewed the proposed acquisition site, the Dale Tile property. He stated a goal of the City Council is to facilitate the redevelopment of the Joslyn site. He explained that what is proposed is an amendment to the development agreement to acquire the Dale Tile property which • 07/10/00 -1- DRAFT would make the redevelopment site larger and more marketable. He indicated that since this concept _ is in the area of the realignment of France Avenue, it should be considered following the discussions regarding the realignment of France Avenue which will be held July 19, 2000. A motion by Commissioner Lasman, seconded by Commissioner Hilstrom to table a resolution approving and authorizing execution of a development agreement with Real Estate Recycling for additional redevelopment to the July 24, 2000, EDA meeting passed unanimously. 5. ADJOURNMENT A motion by Commissioner Hilstrom, seconded by Commissioner Nelson to adjourn the meeting at 8:28 p.m. passed unanimously. President • 07/10/00 - • -2 DRAFT EDA Agenda Item No. 3b Commissioner introduced the following resolution and • moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WHEREAS, the Brooklyn Center Economic Development Authority (the "Authority ") has caused to be prepared a Development Agreement (the "Development Agreement ") between the Authority and Twin Lakes Business Park, a Minnesota limited liability company (the "Developer ") a form of which Development Agreement has been presented at this meeting; and WHEREAS, pursuant to the Development Agreement the Authority has agreed to provide tax increment assistance from Tax Increment Financing District No. 3 (A Redevelopment District) to the Developer to help pay the cost of the acquisition and clearance of certain land commonly referred to as the Dale Tile Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota as follows: The Board of Commissioners hereby approves the Development Agreement in substantially the form submitted, and the Executive Director and Secretary are hereby authorized and directed to execute the Development Agreement on behalf of the Authority. 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. EDA Agenda Item No. 4a i i MEMORANDUM • TO: Michael J. McCauley, City Manager _. FROM: Tom Bublitz, Community Development Specialist DATE: July 18, 2000 SUBJECT: Resolution Approving First Amendment to and Assignment of Development Agreement by and between the Brooklyn Center Economic Development Authority and PDHC Ltd. to DRF Dental Buildings LLC and Authorizing Execution of Closing Documents Regarding Sale of 6421 Brooklyn Boulevard On December 13, 1999, the Brooklyn Center Economic Authority (EDA) approved a development agreement with PDHC Ltd. (Park Dental) regarding the development of EDA owned property at 6421 Brooklyn Boulevard as part of an overall expansion and new construction of a dental clinic adjacent to and including 6421 Brooklyn Boulevard. To facilitate development and construction of the new clinic, PDHC desires to assign the development agreement to Frauenshuh Companies through DRF, a limited liability corporation. The initial development agreement executed by the EDA and PDHC, permits the assignment of the development agreement to Frauenshuh Companies. Ultimately, DRF will own the building and lease it to PDHC. A copy of the proposed "First Amendment to and Assignment of Development • Agreement' ' is included with this memorandum. Under the terms of the assignment of the development agreement, DRF agrees to the terms of the original development agreement, except for those items that have been completed and are no longer applicable. Specifically, the items included in section 3 "Amendment of Agreement" are as follows: The (a ) amendment acknowledges Final Plan approval of the development pursuant to the Development Agreement. This section addresses conceptual approval only and site and building plan and PUD approval of the development would still be required pursuant to regular Planning Commission and Council review. (b) This section specifies that DRF will not be required to provide a letter of credit. The EDA already has a letter of credit from PDHC in the amount of $180,000. (c) This section confirms that all investigations regarding due diligence by the Developer have been completed and satisfied. The focus of the due diligence. investigations were environmental and P g S Phase I and Phase II environmental investigations have been successfully completed. It is anticipated that, upon approval of the attached Amendment and Assignment of Development Agreement by and between the Brooklyn Center Economic Development Authority and PDHC to DRF Dental Buildings LLC, the EDA will convey the property at 6421 Brooklyn Boulevard, to DRF Dental Buildings, LLC at a closing scheduled for July 28, 2000. Therefore, resolution also authorizes • the EDA President and Executive Director to execute the necessary documents to sell and convey the property to DRF Dental Buildings LLC. Commissioner introduced the following resolution and moved its adoption: • EDA RESOLUTION NO. RESOLUTION APPROVING FIRST AMENDMENT TO AND ASSIGNMENT OF DEVELOPMENT AGREEMENT BY AND BETWEEN THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY AND PDHC LTD. TO DRF DENTAL BUILDINGS LLC AND AUTHORIZING EXECUTION OF CLOSING DOCUMENTS REGARDING SALE OF 6421 BROOKLYN BOULEVARD WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (EDA) approved a development agreement with Park Dental Health Clinics, Ltd. (Developer) for a development which includes the EDA -owned property at 6421 Brooklyn Boulevard; and WHEREAS, the development agreement between the EDA and Park Dental Health Clinics Ltd. provides for the assignment of the development agreement to Frauenshuh Companies, pursuant to requirements set forth in the development agreement; and WHEREAS, Dental Buildings, LLC, a Minnesota limited liability company (DRF) is acquiring from Developer the development parcel as defined in the development agreement between the EDA and Developer dated December 14, 1999 (Agreement) pursuant to that certain purchase agreement between DRF and Developer dated July 12, 2000; and WHEREAS, Developer desires to assign the Agreement to DRF pursuant to the terms of the purchase agreement. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota, that the First Amendment and an Assignment of Development Agreement, which is attached and made part of this resolution is hereby approved. BE IT FURTHER RESOLVED that the EDA President and Executive Director are hereby authorized, on behalf of the EDA, to execute the necessary documents to sell and convey the property at 6421 Brooklyn Boulevard to DRF Dental Buildings, LLC. 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. FIRST AMENDMENT TO AND ASSIGNMENT OF DEVELOPMENT AGREEMENT . THIS FIRST AMENDMENT TO AND ASSIGNMENT OF DEVELOPMENT AGREEMENT ("Amendment "), is made as of the day of , 2000, by and between the Brooklyn Center Economic Development Authority, a body corporate and politic organized and existing under the laws of the State of Minnesota (the "EDA" ), DRF Dental Buildings LLC, a Minnesota limited liability company ( "DRF "), and PDHC, Ltd., a Minnesota corporation (the "Developer"). WITNESSETH: WHEREAS DRF is acquiring from Developer q g ope the Development Parcel as defined in the Development Agreement between the EDA and Developer dated December 14,1999 ( "Agreement" pursuant to that certain Purchase Agreement between DRF and Developer dated :3 \J, 2000; ( "Purchase Agreement "); and WHEREAS, Developer is assigning the Agreement to DRF per the Purchase Agreement; and WHEREAS, the EDA has consented to such assignment of the Agreement; and WHEREAS, certain matters contained in the Agreement have been satisfied or are no longer • applicable. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Assignment of Agreement. (a) Developer hereby assigns, transfers, and conveys to DRF all of Developer's right, title, and interest in and to the Agreement, as amended hereby, to have and to hold onto DRF and DRF's successors and assigns, forever. DRF hereby accepts all of Developer's right, title, and interest in and to the Agreement, as amended hereby, and agrees to perform, observe, and keep each and every of Developer's covenants and conditions and make all payments arising or occurring from and after the date of this Amendment when and as required as though DRF were named as a party therein. (b) DRF shall indemnify, defend; and hold harmless Developer from and against all obligations, liabilities, or claims assumed by DRF with respect to the Agreement arising from events which occur from and after the date of this Amendment. Developer shall indemnify, defend, and hold harmless DRF from and against all obligations, liabilities, and claims asserted against DRF with respect to the Agreement arising from events which occur prior to the date of this Amendment. 2. EDA Consent to Assignment of Agreement. Pursuant to Section 6.8 ofthe Agreement, the _. • EDA hereby gives its written consent by its signature on this Amendment to the assignment of the Agreement by Developer to DRF as set forth in paragraph 1 above; provided, however, that Developer is not released from any obligations or liabilities under the Agreement. 3. Amendment of Agreement. (a) The EDA and the Developer hereby confirm that, pursuant to Section 2.3(c) of the Agreement, the EDA has approved the proposed Final Plans, as defined in the Agreement. (b) The parties agree that DRF shall not be required to provide any letter of credit and that Sections 3.1(b)(ii) and 3.5 are hereby deleted from the Agreement. (c) The EDA and the Developer hereby confirm that the notices and investigations required by Section 3.1(b)(iii) and (c) have been completed and satisfied and are no longer applicable. (d) Section 6.4(a) is hereby revised to require that all notices be sent to DRF, in addition to Developer, at the address set forth below: DRF Dental Buildings LLC • c/o Frauenshuh Companies 7101 West 78 Street, Suite 100 Bloomington, Minnesota 55439 4. Successors and Assigns. All of the covenants, terms, and conditions set forth herein shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, successors, and assigns. 5. Authority. The EDA, DRF, and the Developer warrant and represent to each other that they have the power and authority to enter into this Amendment and that the person duly executing this Amendment on behalf of such party has the requisite power and authority to do so. 6. Ratification of Agreement. Except as provided in this Amendment, all of the provisions of the Agreement are hereby ratified and confirmed and continue in full force and effect. • Freu- Hrookpark -First Amend. to & AsgVL of Mv. Agmt - V. 4 (42611VIM;1) 2 • IN WITNESS WHEREOF, the EDA, DRF and the Developer have executed this Amendment as of the date set out at its head. i BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By President By Executive Director DRF DENTAL BUILDINGS LLC By ' Manager PDHC, LTD. Byo� , its �� / i • Fmu- Brookpask -Find Amend. to & Assign, of My. Agmt - V. 4 (42612.WPD;1) 3 EDA Agenda Item No. 4b MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialist l� DATE: July 18, 2000 SUBJECT: Resolution Authorizing Acquisition of Certain Real Property by Purchase or Eminent Domain Proceedings To date, the Brooklyn Center Economic Development Authority (EDA) has acquired thirteen properties (nine single family and four commercial) in the 69th and Brooklyn Boulevard area, south of 70th and east of Brooklyn Boulevard including all of the single family properties along June Avenue North. The only parcels remaining in the area proposed for redevelopment are 4315 70th Avenue North (Viking Enterprises) and 4307 70th Avenue North (American Legion Brooklyn Center Post 630). Acquisition of 4307 and 4315 70th Avenue North are necessary for redevelopment of the approximately five acre site bounded by Brooklyn Boulevard on the west, June Avenue on the east, 70th Avenue on the north and 69th Avenue on the south. • The resolution included with this memorandum would authorize staff to begin the acquisition process for the properties at 4307 and 4315 70th Avenue North by purchase or eminent domain. It is the intent of the EDA staff to negotiate acquisition of the two properties, but the resolution provides for acquisition through eminent domain if a negotiated purchase is not achieved. The owner of 4315 70th Avenue North (Viking Enterprises) is interested in selling his property to the EDA. The resolution would authorize the EDA President and Executive Director to execute a purchase agreement for 4315 70th Avenue North in the amount of $380,000. A letter from the owner of Viking Enterprises regarding his estimation of value is included with this memorandum. The value range established by the independent appraiser hired by the EDA shows a value range up to $348,000. Potential relocation costs could exceed $20,000 and legal, court and additional costs associated with condemnation could be another $20,000, which does not include the actual condemnation award which could exceed $348,000. Viking Enterprises is a willing seller in this transaction and in consideration of the potential additional costs of relocation costs and condemnation, staff believes $380,000 is a reasonable amount for acquisition of the property on a negotiated sale. The resolution also addresses the 69th and Brooklyn Boulevard project area with regard to the City's Housing Development and Redevelopment Project Number One, adopted in 1994 and which has established a need for redevelopment in the project area and has established objectives for redevelopment within the project area. Staff recommends approval of the Resolution Authorizing Acquisition of Real Property by Purchase or Eminent Domain Proceedings. • VIKING D 1 S C O U N T 7035 WAYZATA BLVD * ST LOUIS PARK, MN 55426 * 612- 544 -8500 .■■ 4315 - 70TH AVENUE NO. BRKLYN. CTR., MN 55429 612 -560 -3388 6429 LYNDALE AVENUE SO * RICHFIELD MN 554 * - - 23 612 861 3391 14268 PLYMOUTH AVENUE * B URNSVILLE, MN 55337 612 - 435 -2588 B L I N D S 625 MARQUETTE AVE. * SUITE 229 * MPLS. MN 55402 * 612- 376 -0293 Mr. Brad Hoffman May 30, 2000 City of Brooklyn Center 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Dear Mr. Hoffman, As you requested, the following is my opinion of the value of my building located at 4317 70 Ave. No. as well as the moneys necessary to compensate for moving expenses and loss of non movable fixtures. I believe if we went through condemnation and got lawyers and appraisers involved the prices would escalate. These are also based on a quick decision on your part. BUILDING $ 350,000.00 • FIXTURES 10,000.00 MOVING 20,000.00 TOTAL $ 380,000.00 I will pay all real- estate taxes payable up to closing. I will require 120 days to facilitate my move. Please call me at (612) 544 -8500 to discuss this matter. Sincerely, Dennis Hansen • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING ACQUISITION OF CERTAIN REAL PROPERTY BY PURCHASE OR EMINENT DOMAIN PROCEEDINGS WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (the "EDA ") is an economic development authority duly constituted and organized under law, with all of the powers enumerated in Minnesota Statutes Sections 469.090 to 469.1081 (the "Act "); and WHEREAS, the EDA is authorized to develop and carry out housing development and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section 469.002, subdivisions 14 and 15; _and WHEREAS, the EDA adopted a redevelopment plan (the "Plan ") in an area in the City of Brooklyn Center identified as Housing Development and Redevelopment Project No. 1 (the "Project Area ") on April 25, 1994, and approved modifications to the Plan on December 19, 1994, and February 24, 1997; and • WHEREAS, the Plan incorporates, consolidates and expands the redevelopment plans for projects formerly known as the Earle Brown Farm Redevelopment Project and the Housing Development Project No. 1, which projects were created by the City Council and the Housing and Redevelopment Authority in and for the City of Brooklyn Center ( "HRA "), and control over which was transferred from the HRA to the EDA by City Council Resolution No. 87 -170, pursuant to Minnesota Statutes, Section 469.094, Subdivision 2; and WHEREAS, the Plan contemplates the acquisition of certain real properties (the "Properties") which p ) are located in the Project Area and which are more particularly described in Paragraph Number 4 to this resolution; and WHEREAS, the EDA has determined that acquisition of the properties is necessary to carry out the goals and objectives of the Plan. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1. It is necessary to acquire the Properties as described below in this resolution in order for the EDA to carry out the purposes of the Project and Plan, as modified, and the Act. . 2. Acquisition of the Properties by direct purchase or by eminent domain, in the manner provided by Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is hereby authorized. i EDA RESOLUTION NO. 3. The EDA's attorney and staff are authorized and directed to acquire fee simple absolute title to the Properties, by negotiation and purchase or by commencing eminent domain proceedings. 4. The Properties to be acquired are described by the following: Property Address: 4315 70th Avenue North (Viking Enterprises) PID No.: 27- 119 -21 -33 -0065 Property Legal: Lot 16, Block 2 Lane's Brooklyn Center Addition Property Address: 4307 70th Avenue North (American Legion, Brooklyn Center Post 630) PID #: 27- 119 -21 -33 -0066 i Property Legal : Lot 18, Block 2 Lane's Brooklyn Center Addition 5. The EDA President and Executive Director are hereby authorized to execute a purchase agreement,, on behalf of the EDA, for acquisition of 4315 70th Avenue North in the amount of $380,000. 6. The EDA President and Executive Director are hereby authorized, on behalf of the EDA, to execute the necessary closing documents to acquire fee simple absolute title to the property of 4315 70th Avenue North. 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: i whereupon said resolution was declared duly passed and adopted.