HomeMy WebLinkAbout1999 10-25 EDAP Regular Session EDA MEETING
City of Brooklyn Center
October 25, 1999 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 11, 1999 - Regular Session
4. Commission Consideration Items
a. Resolution Authorizing the Economic Development Authority in and for the City of
® Brooklyn Center to Apply for a Contamination Clean Up Grant from the Minnesota
Department of Trade and Economic Development
- Requested Commission Action: -
- Motion to adopt resolution.
Resolution Authorizing the Submission of a Grant Application to the Metropolitan
Council for the Tax Base Revitalization Account
- Requested Commission Action:
- Motion to adopt resolution.
b. Resolution Approving Relocation Claim for Family Hair Care II located at 6916
Brooklyn Boulevard, Brooklyn Center, Minnesota
- Requested Commission Action:
- Motion to adopt resolution.
5. Adjournment
s
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 11, 1999
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 7:53 p.m.
2. ROLL CALL
President Myrna Kragness, Commission Members Debra Hilstrom, Kay Lasman, Ed Nelson, and
Robert Peppe. Also present: Executive Director Michael J. McCauley, City Attorney Charlie
LeFevere, and Recording Secretary Maria Rosenbaum.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Commissioner Hilstrom, seconded by Commissioner Nelson to approve the agenda and
consent agenda. Motion passed unanimously.
3a. APPROVAL OF MINUTES
A motion by Commissioner Hilstrom, seconded by Commissioner Nelson to approve the minutes
from the regular session on September 13, 1999. Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION APPROVING AMENDMENT TO CONTRACT FOR
DEMOLITION OF 6912, 6918, 6932, 6935, 6938, 6944 JUNE AVENUE
NORTH AND 6938 BROOKLYN BOULEVARD, BROOKLYN CENTER,
MINNESOTA
Executive Director Michael McCauley discussed this resolution would amend the original contract
for demolition of 6912, 6918, 6932, 6935, 6938, 6944 June Avenue North and 6938 Brooklyn
Boulevard. Contract changes occurred during the course of demolition work for the following
reasons:
• 10/11/99 -1- DRAFT
• Only one of the three homes to be burnt by the Brooklyn Center Fire Department was
burned creating an additional expense for demolition material for landfill disposal.
• One of the properties contained a 270 gallon fuel oil tank that had to be removed.
• During the demolition, additional asbestos containing material was found that was
not discovered in the initial asbestos abatement of the house, and the material had to
be taken to a special landfill area.
RESOLUTION NO. 99-19
Commissioner Lasman introduced the following resolution and moved its adoption:
RESOLUTION APPROVING AMENDMENT TO CONTRACT FOR DEMOLITION OF 6912,
6918, 6932, 6935, 6938, 6944 JUNE AVENUE NORTH AND 6938 BROOKLYN BOULEVARD,
BROOKLYN CENTER, MINNESOTA
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Nelson. Motion passed unanimously.
5. ADJOURNMENT
A motion by Commissioner Hilstrom, seconded by Commissioner Peppe to adjourn the meeting at
7:55 p.m. Motion passed unanimously.
President
10/11/99 -2- DRAFT a
i
EDA Agenda Item No. 4a
i
i
• MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Tom Bublitz, Community Development Specialist,
_ 1
DATE: October 19, 1999
SUBJECT: Resolution Authorizing the Economic Development Authority in and for the City of
Brooklyn Center to Apply for a Contamination Clean Up Grant from the Minnesota
Department of Trade and Economic Development
and
Resolution Authorizing the Submission of a Grant Application to the Metropolitan
Council for the Tax Base Revitalization Account
To date, the Economic Development Authority has received $2,443,680 in grant funds for the
cleanup of the old Joslyn Pole Yard site. The breakdown of grant funds is as follows:
• Round one of grant funding
Minnesota Department of Trade and Economic Development (DTED) $1,752,968
Metropolitan Council - $318,172
• Round two funding application
DTED $372,540
Metropolitan Council $0
Financing for the cleanup of the Joslyn site, comprehended in the Tax Increment Financing Plan
adopted by the City Council and EDA includes a combination of state grant funds and tax increment
financing.
With the completion of the first and second rounds of state funding, the cleanup of the westerly
portion of the site is complete. Construction of a 202,400 square foot Wickes Furniture Distribution
Center is under way. The third round of grant funding would provide funds to continue cleanup of
the easterly or front portion of the site adjacent to Highway 100.
The grant applications to DTED and the Metropolitan Council, which are being prepared by Real
Estate Recycling, will request in, excess of $1,300,000 from the two state agencies. Awards from
the state agencies are made on a competitive basis and award announcements are expected to be
made in early December, 1999.
Resolutions authorizing the submission of both grant applications are included with this
• memorandum.
Commissioner introduced the following resolution and
. moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF BROOKLYN CENTER TO APPLY FOR A CONTAMINATION
CLEAN UP GRANT FROM THE MINNESOTA DEPARTMENT OF TRADE AND
ECONOMIC DEVELOPMENT
WHEREAS, the Economic Development Authority in and for the City of Brooklyn
Center (EDA) acts as the legal sponsor for project(s) contained in the Contamination Cleanup Grant
Program to be submitted on November 1, 1999; and
WHEREAS, the Executive Director is hereby authorized to apply to the Department
of Trade and Economic Development for funding of this project on behalf of the EDA; and
WHEREAS, the EDA has the legal authority to apply for financial assistance, and the
institutional, managerial and financial capability to ensure adequate project administration; and
WHEREAS, the sources and amounts of the local match identified in the application
are committed to the project identified; and
WHEREAS, the EDA has not violated any Federal, State or local laws pertaining to
fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice;
and
WHEREAS, upon approval of its application by the state, the EDA may enter into
an agreement with the State of Minnesota for the above referenced project(s), and that the EDA
certifies that it will comply with all applicable laws and regulations as stated in all contract
agreements.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center, Minnesota that the Executive Director is hereby authorized
to execute such agreements as are necessary to implement the project on behalf of the applicant.
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.
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO
THE METROPOLITAN COUNCIL FOR THE TAX BASE REVITALIZATION
ACCOUNT
WHEREAS, the Economic Development Authority in and for the City of Brooklyn
Center (EDA) is a participant in the Livable Communities Act Housing Incentives Program for 1999
as determined by the Metropolitan Council, and is therefore eligible to make application for funds
under the Tax Base Revitalization Account; and
WHEREAS, the EDA has identified a clean-up project known as the Joslyn Pole Yard
site within the City that meets the Tax Base Revitalization account's purpose and criteria; and
WHEREAS, the EDA has the institutional, managerial and financial capability to
ensure adequate project administration; and
WHEREAS, the EDA certifies that it will comply with all applicable laws and
regulations as stated in the contract agreements; and
WHEREAS, the Economic Development Authority in and for the City of Brooklyn
Center, Minnesota agrees to act as legal sponsor for the project contained in the Tax Base
Revitalization grant application to be submitted on November 1, 1999.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center, Minnesota that the Executive Director is hereby authorized
to apply to the Metropolitan Council for this funding on behalf of the Economic Development
Authority in and for the City of Brooklyn Center and to execute such agreements as are necessary
to implement the project on behalf of the applicant.
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. 4b
• MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Tom Bublitz, Community Development Specialist-"
DATE: October 19, 1999 °
SUBJECT: Resolution Approving Relocation Claim for Family Hair Care II located at 6916
Brooklyn Boulevard, Brooklyn Center, Minnesota
On August 12, 1999 the Economic Development Authority in and for the City of Brooklyn Center
(EDA) purchased the commercial property at 6912, 14, 16 and 18 Brooklyn Boulevard. Two of the
addresses, 6912 and 6916 were occupied with businesses at the time of acquisition and as such are
entitled to relocation benefits.
EDA staff is working with Wilson Development Services, a relocation consultant, to facilitate the
relocation of the two existing businesses in the project area. The two businesses are Minnesota
Outdoor Power and Equipment, a lawn mower repair business, located at 6912 Brooklyn Boulevard
• and Family Hair Care II, a beauty salon located at 6916 Brooklyn Boulevard.
Wilson Development Services has been working with both businesses to provide relocation services.
It is the intent of both businesses to relocate as close as possible to their existing address. Family
Hair Care II has found a new location in the city of Brooklyn Park and will be vacating the current
site at 6916 Brooklyn Boulevard on November 5, 1999.
Wilson Development Services has prepared a relocation claim pursuant to the Uniform Relocation
and Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform
Relocation Act). Under the Uniform Relocation Act, businesses can elect to receive actual moving
expenses or a fixed payment in lieu of actual moving costs. Family Hair Care II has elected to take
the fixed payment as its total relocation benefit. A business qualifying for a fixed business relocation
payment can be paid an amount equal to its average net earnings for the two taxable years prior to
its displacement. However, the payment amount is limited to $20,000 if the net earnings average
is greater; the payment is a minimum of $1,000 if the net earnings average is less. The claim
prepared by Wilson Development Services for Family Hair Care II is $14,376. This would constitute
full payment for relocation benefits to Family Hair Care II. A copy of the relocation claim is
attached.
Staff has prepared a resolution accepting and approving the claim for relocation benefits for Family
Hair Care II. Staff recommends approval of the resolution.
•
• Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING RELOCATION CLAIM FOR FAMILY HAIR CARE II
LOCATED AT 6916 BROOKLYN BOULEVARD, BROOKLYN CENTER, MINNESOTA
WHEREAS, on August 12, 1999, the Economic Development Authority in and for
the City of Brooklyn Center (EDA), acquired the property addressed as 6912, 6914, 6916 and 6918
Brooklyn Boulevard; and
WHEREAS, 6916 Brooklyn Boulevard is occupied by a retail tenant (Family Hair
Care II); and
WHEREAS, the business owner of Family Hair Care II located at 6916 Brooklyn
Boulevard is entitled to relocation benefits in accordance with the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended (Uniform Relocation Act); and
WHEREAS, Wilson Development Services, the EDA's relocation advisor, has
prepared a claim for relocation benefits for Family Hair Care II in the amount of $14,376, pursuant
to the Uniform Relocation Act.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center, Minnesota as follows:
1. The relocation claim for Family Hair Care II in the amount of $14,376 is hereby
approved.
2. The EDA Executive Director is hereby authorized to approve the relocation claim for
Family Hair Care II and pay the claim in accordance with the City purchasing policy.
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.
0
- 10/06/1999 14:26 6124484676 WILSON DEVELOP SERV PAGE 02
Claim for Fixed Payment in Lieu of Payment U.S Department of Housing
for Actual Moving and Related Expenses -- and Urban Development.
it
sinesses, Nonprofit Organizations and Farm Operations OMB Approval No. 2506 -0016 (exp. 11/30/92)
gency Name of Agency: Project Name or Number: Case Number.
9nly:
City of Brooklyn Center
Public Reporting Burden for this collection of information is estimated to average 1.0 hour per response, including the time for reviewing instructions, searching
` existing data sources, gathering and maintaining the date needed, and completing and reviewing the collection of information. Send comments regarding this burden
estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information
Policies and Systems, U.S. Department of Housing and Urban Development, Washington, D.C. 2041A3600 and to the Office of Management and Budget, Paperwork
s Reduction Project (2506 - 0016), Washington, D.C. 20503. Do not send this completed form to either of these addressees.
Inatruc1IQnr,. This form is for the use of displaced businesses, nonprofit organizations, and farm operators thatwish to apply for a Fixed Payment, rather than apply
for a Payment for Actual Reasonable Moving and Rotated Expenses, Including Reestablishment Expensee. The minimum fixed payment is $1,000: the
maximum is $20,000, The Agency will explain the differences between the two payments. N you are eligible to choose either payment, the Agency Will help you
to determine which is most advantageous. If the full amount of your claim is not approved, the Agency will provide you with a written explanation of the reason. If
you are not satisfied with the Agency's determination, you may appeal the determination. The Agency will explain how to make an appeal.
ta. 1. Business, A business is eligible for a fixed g
g payment, if all of the following conditions are met:
a. The business either (1) discontinues operations, or (2) folocatas but is likely to incur a substantial loss of its existing patronage (clientele or net earnings).
b. The business is not part of a commercial enterprise having more than three other entities which are not being displaced, and which are under the same
ownership and engaged in the same or similar business activities.
c. The business operation at the displacement property is not limited solely to the rental of all or a portion of the real property to one or more others.
d. The business masts a minimum income test.
2. Nonprofit Organization. A displaced nonprofit organization is eligible for a fixed payment, if (1) it discontinues operations, or (2) it relocates but is likely to
suffer a substantial loss of its existing patronage (membership or clientele).
3. Farm Operation. A displaced farm operation is eligible for a fixed payment if it meets a minimum income test.
t
Section A. General
('r 1. Name Under Which Claimant Conducts Operations:
Family Hair Care II
` 2. Name, Address 8 Telephone Number of Person FIIUg Cfalm on Behalf of Claimant
3a. Address from Which claimant Moved:
6916 Brooklyn Blvd., Brooklyn Center, MN
. #. ate First Occupied Property: 3c. Daie Wvs Started
1980
49. Address to Which Claimant Wved: - 4b. Date Move Completed
3240 Brookdale URive, Brooklyn Park, MN 55443 11 -05 -99
Rt
,»
S. Type of Operation (chock one) ti. Type of Ownership 7. Is This a Final Claim?
❑}L Business Farm Operation p ' p po
{ pe X Sole Pro netarxhi Cor ration 91 Yes � No if - No', attach explanation)
�Nonproflt Organization Partnership Nonprofit Organization
11. Computation of Payment
item Amount Claimed For Agency Use Only
(1) Amount from line (4), (8), (12) or (15) of Section D (If less than $1,000, enter
$1.000. If more than $20,000, enter $20,000)
$ 14. 376.00 $
(2) Amount Previously Received (if any)
i, 0
(3) Amount Requested (Subtract line (2) from line (1)) $ $
9. Certification by Claimant(s): I certify that this claim and supporting information 2W true and complete and that I have not been paid for
these expenses from any other source.
Signature(s) of Clalmant(s) or Agent Title ('type or Prino Date
0 u?n�r" or A. q 1Qg9
X
Warning: H will prosecute fa E claims and statements. Convic may result in criminal and/or civil penalties. (18 U,S.C.1001.1010,1012; 31 U.S.C. 3729, 3802)
To Be Completed by Agency
Payment Action Amount of Payment Signature Name (Type or Print) Date
Recommended: $ 14, 376.00 � �,�xr, ( , Penny Rolf 9 -30 -99
Approved: $ Q V
F= form HUD -40056 (1/92)
k Previous Editions are Obsolete Page 1 of 2 ref, Handbook 1378
r ate.. a9
10/06/1999 14:26 6124484676 WILSON DEVELOP SERV PAGE 03 AN
Section B. Gross Receipts Determination for Business or Form Operation
Item Bete Paned 3/ For Agenoy Una Only
1g t9 Average
*"'ipts or Gross Sales, Less Returns and Allowances
Section C. General Tax Information (Not to be completed by Nonprofit organizations)
Name(s) Used on Income Tax Return($) Employer Identification Numbor(s) Principal Type of Business Activity Reported on Tax Retum(s)
Shown on Tax Return(&)
R ,-
?; Family Hair Care II 41- 1365491 Beauty Shop
Federal Income Tax Returns for Base Peried.31
Tax Returns Filed war Director of internal Revenue in:
Year City State Year City State
19 97 ( 1 9� 1 I
Ssctlon D. Computation of Average Net Earnings or Net Revenues for Base Period 3/
". I Bass Period For Agency Use Only
Item 19 97 19 98 Average
Table i. Individual or Sole Proprietor (Relates to IRS Form 1040)
(1) Net Profit (or Loss) Before Taxes from 1.98 Form 1044 $ 13, 816.00 14, 936.00 $ 14, 376.00 $
. (2) Adjustments (Attach Statement) y
(3) Compensation Paid to Owner, Owner's Spouse, and
Dependents (List named and amounts to each)
v
(4) Net Earnings (Add lines (1), (2) and (3)) $ 13,816.00 $ 14, 936.00 $14,376.00 $
Table 11, Corporation (Relates to IRS Form 1120 and 1120 -S)
(5) Taxable Income from IRS Form 1120
(ot Ordinary Income from IRS Form 1120S) $ $ $ $
a djustments (Attach StatemenQ
(7) Compensatlon Paid to Principal 8mckholders, Their
Spouses, and Dependents (List nerves and amounts to each) IV
(B) Net Earnings (Add tines (5), (e) and (7)) $ $ $ $
Table ill. Partnership (Relates to IRS Form 1065)
(9) Ordinary income (or Loss) Before
€.
Taxes (From IRS Form 1065) $ $ $ $
(10)Adjustments (Attach Statement)
(I I)Compensatlon Paid to Principal Partners, Their
Spouses, and Dependents (List named and amounts to each)
(12) Net Earnings (Add Ilnea (9),110). and (11)) $ $ $
a Table IV, Nonprofit Organlutlon $ $ $ $
(13) Annual Gross Revenues
?; (14) Administrative Expenses If � (15) Net Revenues (Subtract line (14) from lino (13)) $ $ $ $
rf ,
rr V This is usually the two tax years prior to your displacement Please consult the Agency.
o tho extentthat tho proflilincome entry online (1), (5) or (9) has been reduced by an expense that was not Incurred In the base period (e.g., a loss carry forward from a previous year,
loss carry back from a later year of declared depredation in excess of actual depredation) such expense must be added back on line (2). (e) or (10). To the extent that the entry on
line (1), (5) or (9) is inflated by an amount not actually earned In the base Period (e.g., refund of State or focal Income taxes or income included under the tax benefit rule because a
deduction taken In a previous year was disallowed), it should be entered on line (2). (6) or (10) as a subtraction.
z Prins stociftider is one who owns 15°Y or more of the cor
W Pal Po ration.
• y/ A principal partner is one with a proprietary interest of 15% or more In "concern.
s! Gross revenues may include membership fees, class fees, cash donations and other fund collections
AdmInistredve expanses include rent, udlitles salaries and fund ralslnC costs.
" Page 2 of 2 form HUD -400SO