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HomeMy WebLinkAbout1996 06-10 EDAP Regular Session • EDA AGENDA CITY OF BROOKLYN CENTER June 10, 1996 I. 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. May 13, 1996 - Regular Session 4. Commission Consideration Items a. Resolution Accepting Award of Commissioners, Waiving Appeal of Award, Agreeing Not to Abandon Condemnation Petition and Approving Stipulation of Settlement for Brookdale Motel (6500 West River Road) • Requested Council Action: -Adopt resolution. 5. Adjournment • 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 MAY 13, 1996 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Myrna Kragness at 7:20 p.m. ROLL CALL President Myrna Kragness, Commissioners Kathleen Carmody, Debra Hilstrom, Kristen Mann, and Charles F. Nichols, Sr. Also present were Executive Director Michael J. McCauley, Director of Public Services Diane Spector, Community Development Specialist Tom Bublitz, City Attorney Charlie LeFevere, and Council Secretary Connie Beckman. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Commissioner Carmody and seconded by Commissioner Mann to approve the May 13, 1996, agenda and consent agenda as printed passed unanimously. APPROVAL OF MINUTE A motion by Commissioner Carmody and seconded by Commissioner Mann to approve minutes of the April 22,1996- Regular Session as printed passed unanimously. RESOLUTION NO. 96 -15 Commissioner Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR STRUCTURE DEMOLITION AT 6550 WEST RIVER ROAD (PREMIER MECHANICAL BUILDING) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kristen Mann and passed unanimously. PUBLIC HEARING REGARDING THE SALE OF LAND BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER The Community Development Specialist reiterated the selling price of the property located at 5449 Emerson Avenue North in Brooklyn Center is $15,000. Cash from sale of the lot would be received at closing. Construction of the home is to begin no later than July 1, 1996, with a completion date no later than December 1, 1996. A copy of the house's proposed design and accompanying building materials to be used were presented to Council. • 05/13/96 - I - r Letters were sent to property owners in the area immediately surrounding the lot. The Community • Development Specialist added he has had conversation with the neighbor living directly north of the lot, as the neighbor has had concerns about the tight proximity of the lot's setbacks. An overhead transparency diagram was presented to clarify setbacks and respective footage property lines. A motion by Commissioner Mann and seconded by Commissioner Carmody to open the public hearing at 7:21 p.m. passed unanimously. Tim Stoderl, resident at 5455 Emerson Avenue North, inquired about setbacks of the property. Bill Oakers from Howard Bohanon Homes, Inc. stated setbacks would be as follows: five feet on the north; ten feet on the south; 35 feet back from the lot line in the street (approximately 50 feet back from the existing curve line). Mr. Stoderl noted concern with his house being lower than the house scheduled to be built and inquired about respective grading to ensure proper water drainage and inquired whether gutters would be installed. Howard Bohanon from Howard Bohanon Homes, Inc. explained how grading of the property would be done and said there were no plans to have gutters installed on the home. Mr. Stoderl questioned length of construction of the house. Mr. Bohanon indicated approximately 45 days. Mr. Stoderl inquired about trash generated durin g construction of the house. Mr. Bohanon stated • there would be a trash dumpster on site per building requirements. Mr. Stoderl asked what type of power source would be used during construction. Mr. Bohanon responded a generator would be used. Mr. Stoderl inquired about the hours and days of house construction. Mr. Bohanon responded by asking hat Mr. Stoderl oderl thou g ht would be reasonable. Mr. Bohhanon indicated construction would take place Monday through Friday from 7:30 a.m. to 4:30 p.m. Mr. Stoderl expressed concern about the house hindering sunlight to his garden. Commissioner Nichols questioned previous existence of a septic system. The Community Development Specialist responded water and sewer disconnects were done when the house which previously occupied the lot was demolished. Commissioner Nichols expressed concerns about a vacated septic system and potential caving in with settling of ground after construction is completed. It was determined that if any septic system was present, it would be discovered and taken care of accordingly when the basement for the new house was dug. A motion by Commissioner Carmody and seconded by Commissioner Hilstrom to close the public hearing at 7:43 p.m. passed unanimously. 05/13/96 -2- • RESOLUTION NO. 96 -16 Commissioner Kristen Mann introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE PURCHASE AGREEMENT FOR THE SALE OF THE EDA -OWNED PROPERTY LOCATED AT 5449 EMERSON AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kathleen Carmody and passed unanimously. COMMISSION CONSIDERATION ITEMS RESOLUTION AUTHORIZING ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE CITY OF BROOKLYN CENTER LOCATED AT 718 -53RD AVENUE NORTH, AND AUTHORIZING EXECUTION OF PURCHASE AGREEMENT AND PAYMENT FOR ACQUISITION COSTS OF SAID PROPERTY The City Manager offered information regarding the property at hand and stated logistics pertaining to the purchase price. Commissioner Carmody inquired about a time y q line of property acquisition. The .City Manager responded approximately two years which would include one year in terms of acquisition and • perhaps another year to create the actual improvement/project. Commissioner Nichols questioned whether the low bidder was notified his bid was rejected because the security bid was not complete per City requirements and questioned if there was any potential litigation since the low bid on said property was not accepted. The Community Development Specialist indicated the low bidder was notified and understood his mistake. The City Manager indicated the City Attorney had been contacted regarding this. The City Attorney responded saying it was safe to assume the City would most likely be covered since the low bidder had been contacted and in turn indicated understanding of the situation, although this type of situation cannot fully guarantee an avoidance of litigation. RESOLUTION NO. 96 -17 Commissioner Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE CITY OF BROOKLYN CENTER LOCATED AT 718 -53RD AVENUE NORTH, AND AUTHORIZING EXECUTION OF PURCHASE AGREEMENT AND PAYMENT FOR ACQUISITION COSTS OF SAID PROPERTY The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kristen Mann and passed unanimously. 05/13/96 -3 - ADJOURNMENT A motion by Commissioner Carmody and seconded by Commissioner Nichols to adjourn the • meeting at 7:59 p.m. passed unanimously. President Recorded and transcribed by: Connie Beckman TimeSaver Off Site Secretarial • 05/13/96 -4- Memorandum To: Michael J. McCauley, City Manager � From: Tom Bublitz, Community Development Specialist--/ Date: June 5, 1996 Subject: Resolution Accepting Award of Commissioners, Waiving Appeal of Award, Agreeing Not to Abandon Condemnation Petition and Approving Stipulation of Settlement for Brookdale Motel (6500 West River Road) On May 13, 1996, the court- appointed commissioners in the condemnation petition for the Brookdale Motel filed an award of $412,000. A summary of the value evidence presented by both sides follows: ♦ The EDA's value position for the property was $314,700, and the owner's value position was $529,700. (These amounts include land, building and fixtures). ♦ The owner paid $350,000 for the property in October 1992. ♦ In 1993, the owner appealed the assessors estimated market value. The owner claimed a value of $212,500, and the assessor testified the value was $340,000. The tax court found that the value of the property was $340,000 as of January 2, 1992. In their determination of value, the commissioners thought the Brookdale Motel had a better location than any of the comparable motels used to establish value during the condemnation hearing, with easy access to Trunk Highway 252 and a large lot. Either the EDA or the owner may appeal the commissioners' award within 40 days following the May 13, 1996, filing of the award with the District Court Administrator. The EDA's attorney in this matter is recommending acceptance of the commissioners' award and has prepared a stipulation of settlement included with this memorandum which would provide that both the owner and the EDA would accept the award and waive their rights to appeal the award. The EDA would also agree not to abandon the condemnation petition. The other major provisions of the stipulation of settlement are as follows: • ♦ The owner is entitled to relocation benefits under the Federal Uniform Relocation Act. These benefits include re- establishment costs, replacement site search and moving expenses. The owner agrees to settle the relocation claim for $20,000. Memorandum to Michael J. McCauley June 5, 1996 Page 2 ♦ The owner is also entitled to $500 compensation for the appraisal fee. The owner would agree to deliver possession of the property by June 17, 1996. ♦ The total amount of the payment to the owner, including relocation and appraisal fees, would be $432,500. A resolution authorizing execution of the stipulation of settlement has been prepared for EDA consideration. The stipulation of settlement has also been forwarded to the owner's attorney for execution by the owner. • - Type: Condemnation STATE OF MINNESOTA COUNTY OF HENNEPIN DISTRICT COURT FOURTH JUDICIAL DISTRICT `- `- `` - --- COURT FILE N0. CD -2365 Economic Development Authority in and for the corporate and politiCCenter a public body Petitioner, Edwin W. Elmer; Sandip C. Bhakta; Jagruti S. Bhakta; Mahishkumar S. Bhakta; State of Minnesota; City of Brooklyn Center; County of Hennepin; all other parties unknown having any right, title or interest in the herein, together with the unknown heirsisoor STIPULATION OF devisees, if any, of the parties that may be SETTLEMENT deceased, and including unknown spouses, if any, Respondents. THIS AGREEMENT dated this day of June, 1996 is by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER ( "EDA ") and SANDIP C. BHAKTA AND JAGRUTI S. BHAKTA, husband and wife ( "Owners "). I. RECITALS Section 1.01. EDA commenced the above captioned action to acquire the real estate described in Exhibit A attached hereto by condemnation ("Subject Property Section 1.02. Owners represent that they are the contract for deed vendees and equitable Owners of the Subject Property, subject • to the interest of Edwin Elmer, contract for deed vendor and Owner =105141 8830.5 -44 6 30tid 0LE6LEEZi5 -QI N3AW80 V AQ3NN3N:W0NA eb:St SG- SO -Nnp in fee simple of the Subject Property, but free of the interest of Manishkumar S. Bhakta, whose lease has been terminated. Section 1.03. On May 9, 1996, the commissioners appointed by the District Court herein to determine the amount of damages caused by the taking of the Subject Property issued their award of damages resulting from the taking in the amount of $412,000 and thereafter filed said award of damages in the office of the District Court Administrator for Hennepin County on May 13, 1996. Said award also obligated the EDA to reimburse Owners in the amount of $500 for appraisal fees incurred by the Owners as a result of the taking. Section 1.04. Either EDA or Owners may appeal the commissioners award within 40 days following the filing of the award with -the District Court Administrator. In the event of an appeal by one party the other party may cross- appeal. In the event of an appeal, a jury trial de novo would be held in district court, unless the parties agree to compromise the dispute. As of the date hereof, neither party has appealed. Section 1.05 EDA is entitled to withdraw its condemnation petition in this proceeding at any time before it pays a portion of the award of damages. Section 1.06. The parties hereto desire to settle their differences in this proceeding without further litigation, without either party appealing the commissioners award, and without EDA withdrawing its condemnation petition. II. AGREEMENT Section 2.01. Owners agree to accept from EDA a total of • $ "Sett �► $432,500 ( "Settlement Amount") as a full, complete and final amount M105141 BR305 -44 2 S ROVIA __ OTEGLEEZiS =Qt MgAW n it znann►�v:wnvs c�.:er oc_crr_wnn Of compensation to be paid to Owners for the taki • taking of all intere in the Subject Property, including but not limited to relocation benefits and appraisal fees. Section 2.02. EDA agrees to pay the Settlement Amount and deliver it to Owners as soon after EDA Board of Commissioners approval as Owners deliver possession of the Subject Property to EDA, remove all personal property from the premises, and deliver the abstract and all keys for the Subject Property to EDA. Owners dgree to deliver possession of the Sub Property to EDA and the abstract and keys to Thomas Bublitz of EDA, prior to 12:00 noon on June 17, 1996. Section 2.03. Owners and EDA both agree that neither Owners nor EDA will file an appeal from the award of the court appointed • commissioners or otherwise assert any further claim for damages due to the taking of the Subject Property, except to seek enforcement Of this stipulation, if and as necessary. Section 2.04. EDA agrees that it will not withdraw, abandon or dismiss its condemnation proceeding herein for the taking of the Subject Property. Section 2.05. This agreement is contingent upon the approval of the Board of Commissioners of the Economic Development Authority in and for the City of Brooklyn Center. Section 2.06. The parties agree that if the settlement is approved by the EDA Board, the EDA's check will be made payable to the following jointly: Edwin W. Elmer • Sandip C. Bhakta and Jagruti S. Bhakta Joseph Brodsky WL105141 BR305 -44 3 01 T 9'= - / r9'7- T Q 2 M T KV=n w1A 10 t rrvwr wrw - r.r�v s n_s_ - c>'__..rre�___r•�— w.�.e�___ • Section 2.07. Notwithstanding the foregoing, EDA may withhold payment of $5,000 of the Settlement Amount until: (a) It has been provided evidence acceptable to counsel for EDA that all utility bills owed with respect to the Premises for services provided through the date of Owners delivery of the premises to EDA have been paid in full; and (b) All personal property has been removed from the premises. Section 2.08. It is understood and agreed that the Settlement Amount includes $500 in reimbursement of appraisal fees and relocation assistance benefits, in the amount of $20,000. The relocation assistance benefits are the costs of eligible, actual, reasonable and necessary moving - related costs, including costs of packing, moving, unpacking and reinstalling the business personal /movable property, eligible costs of replacement site • searching (to a maximum of $1,000), and eligible reestablishment costs (to a maximum of $10,000), all in accordance with the regulations of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended and Minnesota Statutes, Section 117.52, et seq. The Owners acknowledge that they have met with the EDA staff and the EDA's relocation consultant from Evergreen Land Services on several occasions and that the consultant explained to Owners that if the EDA acquired the Subject Property in fee title, Owners would be entitled to certain business relocation benefits which included compensation for the reasonable and necessary eligible costs of moving the business personal property, searching for a replacement site, and eligible reestablishment costs, all in addition to the • amount of money being aid to p Owners to acquire property. Owners 88305 -Ad 4 G anv PlT -Rl ci' Z.t 9 =QT M=AWWn V invwrwrw.- r_tnvs • hereby acknowledge that they have received an explanation of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended and that said Act entitles Owners to receive these relocation benefits, and that if the Owners sign this Agreement, the Owners will be waiving ,those relocation benefits (except to the extent they are included in the Settlement Amount). Having had these benefits explained to them, Owners hereby agree to waive any claim for additional relocation benefits, in consideration of this Agreement with the EDA. In signing this Agreement, g nt Ow ners acknowledge that no threats were made to Owners either expressly or by implication. If, after signing this Agreement, Owners attempt t p to collect an other her reloca tion benefits, its, • Owners will need to prove, contrary to what Owners are agreeing g g to in this document, that Owners' waiver of relocation benefits herein was not entered into voluntarily. 2.09. If Owners deliver possession of the Subject Property and keys t Y o the Subject Property to EDA on or before June 17 1996, and remove all personal property by that date, as provided in S 2.02, within 10 days thereafter, hereafter EDA will issue a check to Bhaktas in an amount equal to 13/365 multiplied by the amount of base real estate taxes payable in 1996 (thereby prorating real estate taxes to the date of transfer of possession and title to the Subject Property from Owners to EDA. • WL103141 n3os -as 5 e 30Hd • KENNEDY & GRAVEN, CHARTERED ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER By Robert J. Lindall By 470 Pillsbur #63277 200 South SixtheStreet Executive Director Minneapolis, MN 55 #402 City of Brooklyn Center (612) 337 -9300 6301 Shingle Creek Parkway ATTORNEYS FOR PETITIONER Brooklyn Center, MN 55430 BRODSKY LAW FIRM OWNERS By Joseph Brodsky, # Sandip C. Bhakta Suite 304 3101 Old Highway 8 Roseville, MN 55113 • (612) 633 -7474 Jagruti S. Bhakta, wife of Sandip C. Bhakta • PZL103141 MUGS -44 6 _C-, "4_nw 14 fA T C' r,/ =_ f_.7_T.Q : PT T KW= won XC i e-, rKr vv. e. r.ew s._.zz_•. c.♦. _even __� r .... .. • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING AWARD OF COMMISSIONERS, WAIVING APPEAL OF AWARD, AGREEING NOT TO ABANDON CONDEMNATION PETITION AND APPROVING STIPULATION OF SETTLEMENT FOR BROOKDALE MOTE (6500 WEST RIVER ROAD) WHEREAS, EDA Resolution No. 94-46 authorized condemnation of the Brookdale Motel property; and WHEREAS, the condemnation hearings have been completed and the condemnation commissioners filed their award with the District Court Administrator on May 13, 1996, in the amount of $412,000; and WHEREAS, the City Attorney has prepared a stipulation of settlement to be executed by the Economic Development Authority in and for the City of Brooklyn Center and the owners of the Brookdale Motel. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: • ♦ The Economic Development Authority in and for the City of Brooklyn Center accepts the condemnation commissioners' award of $412,000 for the Brookdale Motel. ♦ The Economic Development Authority agrees to waive its right to appeal the award. ♦ The Economic Development Authority agrees not to abandon the condemnation petition for the Brookdale Motel ♦ The Executive Director of the Economic Development Authority in and for the City of Brooklyn Center is authorized and directed to execute the stipulation of settlement regarding the condemnation of the Brookdale Motel and said stipulation of settlement is hereby made part of this resolution. 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.