HomeMy WebLinkAbout1998 07-27 EDAP Regular Session EDA MEETING
• City of Brooklyn Center
July 27, 1998 AGENDA
1. Call to Order
2. Roll Call
3. Approval of 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. June 8, 1998 - Regular Session
4. Commission Consideration Items
e a. Staff Presentation of Single Family House Designs for Bellvue Lane Addition
-Requested Commission Action:
- Motion to adopt resolution.
5. Adjournment
EDA Agenda Item No. 3a
1
TNIINUTES 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
JUNE 8, 1998
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 7:49 p.m.
2. ROLL CALL
President Myrna Kragness, Commission members Kathleen Carmody, Debra Hilstrom, Kay Lasman,
and Robert Peppe. Also present: Executive Director Michael J. McCauley, Assistant City
Manager/HR Director Jane Chambers, Director of Public Works Diane Spector, Planning and
Zoning Specialist Ron Warren, Director of Community Development Brad Hoffman, City Attorney
Charlie LeFevere, and City Clerk Sharon Knutson.
a 3. APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Commission member Carmody and seconded by Commission member Lasman to
approve the agenda and consent agenda as printed passed unanimously.
3a. APPROVAL OF MINUTES
A motion by Commission member Carmody and seconded by Commission member Lasman to
approve the minutes of the May 26, 1998, Regular Session as printed passed unanimously.
4. COMMISSION CONSIDERATION ITEM
4a. RESOLUTION APPROVING A CONTRACT FOR PRIVATE
REDEVELOPMENT BETWEEN THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND
BOULEVARD SHOPPES, LLC
Executive Director McCauley explained this development has been pending since 1995. The
proposal outlines the terms on which the City would participate in the development of the retail.
center.
• 6/8/98 -1-
The financial commitment would be for up to S 1.5 million. $900,000 would be pay as you go and
$600,00 would potentially be written off by the EDA, depending on the cost of acquisition. The
developer is responsible for the first $1.1 million in land costs prior to the use of tat increment or
EDA write down of acquisition costs.
Community Development Director Brad Hoffman outlined the location of the proposed development
on the northeast corner of 69th Avenue and Brooklyn Boulevard, approximately 6.5 acres. The
agreement would be between the EDA and Boulevard Shoppes LLC consisting of Dave Nelson,
James Whitman, and Gary Wenger. The Comprehensive Plan recognizes the site as either office or
retail development. The agreement also provides for assistance in the acquisition of any properties
necessary to complete this project if the developer is unable to acquire the land. However, prior to
the EDA conveying land, using eminent domain powers, or providing any financial assistance, the
developer needs to provide proof of financing, deposit with the EDA monies sufficient enough to
cover the estimated cost of acquisition, and have an approved site and building plan.
Mr. Hoffman addressed the Hennepin County proposal to widen Brooklyn Boulevard in the year
2000. He explained the City would have an obligation to pay for 50% of the cost of right -of -way
acquisition including relocation. The widening of Brooklyn Boulevard would require an easement
of 30 feet on the east side, and the distance from 69th to 70th Avenue is approximately 600 feet. The
acquisition of the easement, independent of any development, would also require the relocation of
five current businesses and eight parcels of which the EDA currently owns three properties at a cost
of $300,000. The entire site to be acquired would be approximately 89,300 square feet, with the
easement representing 20% of the property to be acquired. Hennepin County will be participating
in 50% of the cost of the easement property (50% of the relocation and 50% of the demolition) for
a total contribution of $212,000. The City would have $908,500 tied up in the acquisition of right -
of -way with a remaining parcel worth approximately $285,200. The land remaining from the right -
of -way acquisition would be too narrow to develop by itself. the additional cost of acquiring the
minimum needed to develop this site would be approximately $812,000 of which the EDA has
already purchased one property at a cost of $76,900. If the EDA approves the proposed development
and if the widening of Brooklyn Boulevard takes place, the overall land write down would be
reduced by the estimated $212,000 received by Hennepin County.
Mr. Hoffman explained that a storm water retention pond is required with this proposed
development. The developer would be specially assessed for their proportionate share. The pond
could be located on the north side of 70th Avenue or could be created in conjunction with the future
St. Alphonsus project, thus not creating several small ponds. Another issue which needs to be
addressed is the backyard treatment/screening, and it is recommended that it be the same as along
69th Avenue. Mr. Hoffman indicated that neighbors in this location have been notified of this
proposed development.
Commission member Hilstrom raised the question of the required storm water retention pond and
who pays if the pond is not built in conjunction with the St. Alphonsus project.
6/8/98 -2-
Mr. Hoffman explained that the necessary size of the pond is based on the square footage served;
• therefore, if the pond is built only to accommodate the retail center, the developer would pay 100 %.
Commission member Hilstrom raised the question of the total cost to the City. Mr. Hoffman
explained that part of the development agreement is that the City acquires an easement and the
maximum total cost is $1.5 million. If the County proceeds with the widening of Brooklyn
Boulevard, the cost is reduced by $212,000.
Commission member Hilstrom inquired if there is an agreement with Hennepin County regarding
the redevelopment of Brooklyn Boulevard. Mr. McCauley responded there is a draft agreement and
negotiations are proceeding. The City is negotiating to increase Hennepin County's participation
in the costs.
Commission member Hilstrom asked what the City's liability is to the homeowners if the EDA
approves this development proposal and it doesn't go forward. City Attorney LeFevere explained
that technically there is no liability.
President Kraaness raised the issue that the homeowners
, in this area have been placed in a hardship
for some time now with the proposed development and not being sure if they are going to lose their
homes or not. In some cases, the City's code enforcement has been through the area and
homeowners have received orders to maintain their property. If there is a potential that the City may
purchase their homes, what incentive is there to upgrade their properties.
Commission member Hilstrom inquired what say the City has as far as the types of businesses which
will be located in the retail center. Mr. McCauley explained what is limited in the zoning
requirements would be allowed, and the City would have very little control if the type of business
meets those requirements.
Mr. Hoffman said that the contract agreement is subject to conditions, and the EDA could chose to
include certain conditions regarding types of businesses located in the retail center. He further
explained that this is a neighborhood retail center, and a service station/convenience store is the
anchor for the developer's financing. If the City places a condition not to allow the service station,
he believes the developer may not be able to obtain financing and may not proceed with the
development.
Commission member Hilstrom inquired if the residents in the neighborhood have been approached
regarding acquisition. Mr. Hoffman indicated that the City has not contacted any of the residents,
but the residents have contacted the City inquiring when the project would take place.
Dave Nelson, developer, and Gary Wenger, architect, explained the project is a 50,000 square foot
retail neighborhood center and displayed renderings of the center.
He said the proposal does include a service station/convenience store, and it is the anchor for
obtaining financing. Demographics indicate the area needs this type of redevelopment.
i 6/8/98 -;-
There would be three separate buildings, possibly including a coffee shop, flower shop, bagel shop.
pizza place, and a drug store. There would be no outside storage. He indicated he has met with
some of the residents in the neighborhood regarding options.
Commission member Hilstrom inquired if this proposal fits in with the Brooklyn Boulevard Study.
Mr. Hoffman indicated that this would be the first project to implement the study, especially in the
landscaping area.
Commission member Peppe raised the question of the back of the buildings and what would be the
screening. Mr. Hoffman responded that the neighborhood would have input on the type of screening
to be used, and at this point it is recommended to be similar to the fencing along 69th Avenue.
President Kragness opened the meeting for public input.
Darnell Ostrom spoke on behalf of her parents, the Gustafsons who reside at 6935 June Avenue
North. She raised concerns regarding the time frame for implementation of the project, notification
of the time frame and if the project is going forward, who is ultimately responsible, who would make
the assessment of homes to determine value, and compensation for home improvements that have
been made.
Community Development Director Hoffman stated that the initial discussions would be between the
developer and property owners. If the City were to be involved because the developer and owner
could not reach an agreement, he explained the appraisal process, indicating the City pays for this
appraisal. There are relocation costs which are also included in the acquisition. He reviewed the
process for eminent domain.
Nis. Hayes, owner of a beauty shop on Brooklyn Boulevard and 69th Avenue, stated her concerns
with loss of business during the construction period. President Kragness referred Ms. Hayes to speak
with Mr. Nelson regarding any potential for relocation in the retail center. Mr. Nelson said he plans
to speak with the current tenants regarding relocating to the new retail center.
Commission member Hilstrom raised the question of the time frame for this development.
1\/1r. Nelson said the first step is to get a development contract. The plan requires acquisition of all
the properties by the end of this year; construction would begin in the spring with completion by the
end of 1999.
Roger Gustafson, representing his parents who reside at 6935 June Avenue North, said his father is
homebound and his mother is legally blind and they don't want to move, they enjoy their neighbors,
they cannot afford another house, and the church is within walking distance.
Mr. Hoffman explained that the relocation services take into consideration the needs of the residents
and try to fit into the criteria used and find a comparable home.
6/8/98 -4-
Julie Berg, 6944 June Avenue North, explained that she purchased her home with first -time
• homebuver mort money, and she can never qualify for that same mortgage money again since
it is for first -time homebuyers. She has spoken with Tom Bublitz regarding her concerns and the
possible redevelopment. She requested clarification as to whom she should be negotiating with at
this time.
President Kragness referred Ms. Berg to speak with Mr. Nelson.
Commission member Hilstrom said the property on the northeast corner of 69th Avenue and
Brooklyn Boulevard is in dire need of redevelopment; however, she does not support subsidizing
strip malls or gas stations with City funds. She raised a concern with approving the retail center and
having no control over what types of businesses are located in the center. She stated she is not
convinced that the City should fund this retail center.
Commission member Carmody explained that this area has been a higher priority for redevelopment
for the past three years. The property is unsafe and an eyesore, and it has been on hold too long and
now there is the opportunity to proceed with a proposed development.
RESOLUTION NO. 98 -10
Member Carmodv introduced the following resolution and moved its adoption:
• RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN
THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN
CENTER AND BOULEVARD SHOPPES, LLC
The motion for the adoption of the foregoing resolution was duly seconded by member Peppe and
upon vote taken, the following voted in favor: President Kragness, Commissioners Carmody,
Lasman, and Peppe; Commissioner Hilstrom voted nay. The motion passed.
5. ADJOURNMENT
A motion by Commission member Carmody and seconded by Commission member Lasman to
adjourn the meeting at 8:50 p.m. passed unanimously.
President
Recorded and transcribed by:
Sharon Knutson
i 6/8/98 -5-
EDA Agenda Item No. 4a
•
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Tom Bublitz, Community Development Specialist 1 %/r,5
DATE: July 23, 1998
SUBJECT: Home Designs for Bellvue Lane Addition
Attached to this memorandum are elevation drawings of the three model homes proposed for
construction in Bellvue Lane Addition. The plans are as follows:
1. "A Model" - This model is a 2 story, 3 bedroom house with 2' /z baths and a full
basement with 2 car garage. The first floor level is 976 sq. ft. with 785 sq, ft. on the
second floor, for a total of 1,761 sq. ft. of finished space and basement of 890 sq. ft.
2. "C Model" - This is a rambler with 2 bedrooms and 1' /2 baths with 1,420 sq. ft. of
finished space and a 1,194 sq. ft. basement. This model provides a 2 car garage with
expanded storage space comparable to a third car stall.
3. "D Model" - This model is a modified 2 two story th an open foyer, bedrooms on
�' P
the second floor, 2'/z baths and an office /den on the first floor. This unit has 990 sq.
ft. on the first level and 765 sq. ft. on the second floor for a total finished space of
1,755 sq. ft. The full basement is 957 sq. ft. and this model also provides a 2 car
garage with expanded storage space comparable to a third car stall.
It should be noted that the rear elevations include features such as additional windows and dining
areas that extend out from the house to provide a more appealing rear exterior. Stucco, cedar and
upgraded vinyl exteriors will be offered on all the homes with options for partial brick exteriors.
Additionally, all homes would be constructed with an egress window in the basement.
For Monday's EDA meeting, staff will have available for presentation, colored renderings of the three
models including floor plans.
Staff is also working with a resident currently living on 4th Street North, who is interested in building
a home in Bellvue Lane Addition using his own house design and builder. He has proposed a
multilevel home that staff believes is compatible with the homes the EDA plans to build. The plans
for this home are not yet available and they will be presented to the EDA for review when they are
complete.
Upon approval of the three proposed models, staff would proceed to work with the construction
manager to obtain quotes on the construction of the three model homes. Construction of the three
models would be phased in over the next few weeks and months.
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