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Home My WebLink About1998 11-23 EDAP Regular Session EDA MEETING City of Brooklyn Center November 23, 1998 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. Regular Session - November 9, 1998 4. Commission Consideration Items a. Report on Owner Occupancy Provision in Protective Covenants for Bellvue Lane Subdivision 5. Adjournment I I , EDA Agenda Item No. 3a i 1 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 9, 1998 CITY HALL 1. CALL TO ORDER The Brooklyn Center Economic Development Authority EDA me in regular Y p y( ) t g session and was called to order by President Myrna Kragness at 8:38 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, City Attorney Charlie LeFevere, and Recording Secretary' Maria Rosenbaum. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Carmody, seconded by Commissioner Hilstrom to approve the agenda and consent agenda. Motion passed unanimously. Y 3a. APPROVAL OF MINUTES A motion by Commissioner Carmody, seconded by Commissioner Hilstrom to approve the minutes from the Regular Session on October 26, 1998. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. PUBLIC HEARING REGARDING SALE OF SINGLE FAMILY HOMES LOCATED IN BELLVUE LAND ADDITION RESOLUTION APPROVING TERMS AND CONDITIONS OF SALE OF PROPERTY IN BELLVUE LAME ADDITION PURSUANT TO MINNESOTA STATUE SECTION 469.029 Executive Director Michael McCauley discussed that this resolution would be to approve terms and conditions of sale of property in Bellvue Lane Addition. He also discussed the restrictive covenants and the recommended base sale price of units which are as follows: • 11/09/98 -1- DRAFT * Unit C - (the Independence) ramble - 1410 sq. ft. finished space - $142,900 * Unit A - (the Liberty) two story - 1990 sq. ft. finished space - $155,900 * Unit D - (the Heritage) modified two story - 2100 sq. ft. finished space - $159,900 Councilmember Hilstrom raised a question if these properties could be limited to owner occupied. City Attorney Charlie LeFevere responded that it may be an enforceable covenant. Councilmember Hilstrom requested this be reviewed. A motion by Councilmember Carmody, seconded by Councilmember Hilstrom to open the Public Hearing. Motion passed unanimously. No one wished to address the Council. A motion by Councilmember Carmody, seconded by Councilmember Hilstrom to close the Public Hearing. Motion passed unanimously. The Council discussed whether property owners could put in privacy fences and/or pools. It was noted that the property owners would not be able to put up fencing along the City's fence, but could put fencing perpendicular to the City's fence and along Camden. They would be able to plant bushes or any type of vegetation for privacy along the City's fence. RESOLUTION NO. 98 -19 Commissioner Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING TERMS AND CONDITIONS OF SALE OF PROPERTY IN BELLVUE LANE ADDITION PURSUANT TO MINNESOTA STATUE SECTION 469.029 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lasman. Motion passed unanimously. 4b. RESOLUTION APPROVING LEASE AGREEMENT WITH JANIS BLUMENTALS ARCHITECTS FOR THE D BARN AT THE EARLE BROWN HERITAGE CENTER IN ACCORDANCE WITH ATTACHED LEASING AGREEMENT AND AUTHORIZING THE EDA EXECUTIVE DIRECTOR TO EXECUTE SAID AGREEMENT Mr. McCauley discussed that this resolution would approve a lease agreement with Blumentals Architects for the D Barn at the Earle Brown Heritage Center. Blumentals currently leases office space in the H Barn and is on a month -to -month lease. The space currently used by Blumentals will become additional meeting space with the grant from the State. Blumentals has expressed a strong desire to remain at the Earle Brown Heritage Center. This lease would provide a long -term stable revenue source from a building that accommodates few other uses. • 11/09/98 -2- DRAFT Councilmember Hilstrom expressed concern about having a ten -year lease that may have additional expenses. After further discussion it was the consensus of the Council that this lease would be a wise decision. RESOLUTION NO. 98 -20 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION APPROVING LEASE AGREEMENT WITH JANIS BLUMENTALS ARCHITECTS FOR THE D BARN AT THE EARLE BROWN HERITAGE CENTER IN ACCORDANCE WITH ATTACHED LEASING AGREEMENT AND AUTHORIZING THE EDA EXECUTIVE DIRECTOR TO EXECUTE SAID AGREEMENT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Carmody. Motion passed unanimously. Y 5. ADJOURNMENT A motion by Commissioner Lasman, seconded by Commissioner Carmody to adjourn the meeting at 8:52 p.m. Motion passed unanimously. President 11/09/98 -3- DRAFT EDA Agenda Item No. 4a 1 • i MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development S ecialist( P P DATE: November 18, 1998 SUBJECT: T Report o n Owner r Occupancy Provision In Protective Covenants for Bellvue Lane Subdivision This memorandum is follow -up to the November 9, 1998 EDA meeting regarding a possible addition of an "owner occupied" provision to the Protective Covenants for Bellvue Lane Addition. I spoke with Dianne Mobroten, the EDA's broker on the project, and she provided the following information and comments. Ms. Mobroten commented that it has been her experience that owner occupied restrictions in protective covenants are not used by builders in Minnesota. Ms. Mobroten has worked with a number of single family builders in Minnesota and she indicated none of the builders she has worked • with incorporated this type of restriction into their covenants. Ms. Mobroten indicated than an "owner occupied" restriction may be a detriment to marketing single family homes and indicated some examples including: • Retired owners may spend several months a year in another state and they want to rent out the property for a few months. • A temporary job transfer may necessitate a brief period of time that the owner may desire to rent the property. Ms. Mobroten also noted that the rent on the type of homes being built in the Bellvue Lane Addition could be as much as $1,500 to $2,000 per month which would also limit the market for renting these homes. Ms. Mobroten indicated the "owner occupied" provision could be more commonly found in townhome and condominium developments where too many rental properties could have a detrimental affect on the viability of the condominium or townhouse association. I • G:\DEPTS\ED.4\B UB LITL\MEMOS\ 1998\M MC1.123 I 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 tax WIA T E R E D e-mail: attys @kennedy- oraven.com CHARLES L. LEFEVERE Attorney at Law Direct Dial (612) 337 -9215 email: clefevere @kennedy- graven.com November 17, 1998 Mr. Michael McCauley City Manager City of Brooklyn Center Brooklyn Center MN 55430 RE: Restrictive Covenants; Limitation on Use to Owner Occupancy Dear Mike: At the last City Council meeting, staff was requested to determine whether it would be permissible for the City to impose a restrictive covenant on properties being sold by the City to • limit the use of the property to residential use by owner occupants. In general terms, it would be permissible for the City to restrict the use of the property to occupancy by its owners. This kind of restriction is relatively common in townhouse or condominium declarations; although a restriction against using the units as rental properties is not ordinarily an absolute prohibition but a restriction which allows the properties to be rented only with long -term leases. If the Council wishes to pursue this option, I assume that the intent would be to allow not only owners to occupy but also purchasers under a contract for deed and perhaps persons leasing the property with an option to purchase. The Council may also wish to consider longer term leases :� �JCiiiititCll i15eS. There may be circumstances in which a very strict restriction as to use by persons other than owners could have an adverse impact on the neighborhood. If, for any reason, the owners are not able to occupy the premises, the house would have to remain vacant which can be an undesirable situation. Additionally, such a restriction can be a hardship for an owner in certain circumstances where the owner is not in a position to occupy the property. Examples of such situations might include an owner who is hospitalized, relatives who inherit the property and wish to move there at a future date (e.g. at the end of the school year), or property held by an estate until the estate is settled and the property is sold. Under these and other similar circumstances, it might be important for the owners to be able to enter into long -term leases to • provide income, to offset mortgage payments, and to insure that the house is occupied and cared for. CLL- 153525 BR_91 -} Mr. Michael McCauley November 17, 1993 Page 2 of 2 i In the case of restrictions against rental of properties in townhouse or condominium situations, there is typically an association which has the authority to enforce the covenants and assess its members for the cost of such enforcement. Therefore, if a property in a condominium is being used for rental purposes contrary to the restrictive covenants of a condominium, the association is in a reasonable position to be able to enforce the covenant. In the case of the covenants proposed for the 53rd Avenue project, there will be no such association in place. Therefore, it may be difficult for other owners to enforce a covenant prohibiting the rental of a property. However, this same observation also applies to the other covenants proposed for these properties. In summar -•, sucb restrctions may he imposed by the City Council. If the Council believes that these residential properties should be made subject to such restrictions, staff should be advised as to whether the Council wishes to prohibit any occupancy other than by owners, or wishes to allow rental but only for longer periods of time. Please let me know if you have any further questions. Very truly yours, Charles L. LeFevere CLL:Ih CLL- 153525 BR-191-4