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HomeMy WebLinkAbout1995 03-13 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER MARCH 13, 1995 (following adjournment of City Council meeting) 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: February 27, 1995 - Regular Session - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. b. Resolution Approving the Purchase of Real Property and Authorizing Execution of Purchase Agreement C. Resolution Declaring Computer Equipment and an Automatic Floor Scrubber to be Surplus Property 4. Co Consideration Item 5. Adjournment Council Meeting Date March 13, 1995 31 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: EDA Minutes - February 27, 1995 - Regular Session Department Approval: G. Brad Leff , Director of Community Development Manager's Review/Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: • Summary Explanation: (supporting documentation attached Aes ) February 27, 1995 - Regular Session Kristen Mann was excused from the meeting and the minutes will reflect her abstention from the vote on these minutes. 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 FEBRUARY 27, 1995 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 8:15 p.m. ROL1. CALL President Myrna Kragness, Commissioners Barb Kalligher, Debra Hilstrom, and Kathleen Carmody. Also present were City Manager Gerald Splinter, Director of Public Services Diane Spector, Director of Community Development Brad Hoffman, Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and Council Secretary Barbara Collman. Commissioner Kristen Mann was excused from tonight's meeting. APPROVAL OF AGENDA AND CONSENT AGENDA President Kragness inquired if any Commissioner requested any items be removed from the consent agenda. No requests were made. There was a motion by Commissioner Kalligher and seconded by Commissioner Carmody to approve the agenda and consent agenda as printed. The motion passed unanimously. APPROVAL OF MINUTES JANUARY 23 1995 - REGULAR SESSION There was a motion by Commissioner Kalligher and seconded by Commissioner Carmody to approve the minutes of the January 23, 1995, EDA meeting as printed. The motion passed. Commissioner Kalligher her abstained. g 2/27/95 - 1 - RESOLUTIONS RESOLUTION NO. 95 -05 Commissioner Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION APPROVING ADDENDUM TO AGREEMENT FOR FOOD SERVICES MANAGEMENT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kathleen Carmody, and the motion passed unanimously. COMMISSION CONSIDERATION ITEMS The Director of Community Development discussed a contract for services with BRW, Inc. at a cost of $75,000. Commissioner Kalligher asked whether the funds will be available or will need to be held over and whether immediate action is required. The Director of Community Development stated the project is scheduled by Hennepin County for 1997. The action tonight is to have the development scenario prepared. The area under discussion is north of I- 94/694 and through 70th Avenue North. This is a beginning step to acquiring properties to meet timing goals. RESOLUTION NO. 95 -06 Commissioner Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION APPROVING A CONTRACT WITH BRW, INC. TO PROVIDE PROFESSIONAL SERVICES FOR THE PREPARATION OF A REQUEST FOR DEVELOPMENT PROPOSAL FOR THE NORTHEAST QUADRANT OF BROOKLYN BOULEVARD AND 69TH AVENUE NORTH The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Debra Hilstrom, and the motion passed unanimously. The City Manager explained the addition of an item to consider a resolution authorizing the purchase of chairs and dollies for the Earle Brown Heritage Center. The items can be purchased at a savings of $2,400 by immediate action. RESOLUTION NO. 95 -07 Commissioner Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING QUOTE AND AUTHORIZING THE PURCHASE OF CHAIRS AND DOLLIES FOR THE EARLE BROWN HERITAGE CENTER 0 2/27/95 - 2 - The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kathleen Carmody, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Kalligher and seconded by Commissioner Carmody to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 8:21 p.m. President Recorded and transcribed by: Barbara Collman TimeSaver Off Site Secretarial s • 2/27/95 - 3 - Council Meeting Daft 3/13/95 3 City of Bro oklyn Center Agenda Item Number 3 Request For Council Consideration • Item Description: Resolution Approving the Purchase of Real Property and Authorizing Execution of Purchase Agreement Department Appr val�: i .J ltiL 6 Hoffman, Community bbvelwrt Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommendation: Staff recommends conclusion of the purchase agreement with Holiday. Summary Explanation: (supporting documentation attached No ) • The EDA, in concert with the City Attorney, have reached agreement with Holiday for the purchase of the Howard Adkins' property. The property is located between Highway 252 and Willow Lane, north of the Brookdale Motel and the EDA site and south of 66th. Currently, the City is engaged in a lawsuit with Holiday over the zoning of the property. Holiday has concluded that the EDA is serious about acquiring the property in question no matter what the outcome is of this lawsuit. The agreed purchase price is $500,000, which is less than staff had estimated our costs for the land to be. In addition, we eliminate the costs associated with defending the rezoning of the property. • MEMORANDUM • Date: March 10, 1995 To: Mayor Myrna Kragness and Councilmembers From: Brad Hoffman, Community Development Director Subject: Purchase Agreement for the Acquisition of Lots 1 and 2, Block 1, E & H Properties Addition (Holiday Site on Hwy. 252) Attached for your review is a copy of a proposed purchase agreement for the Howard Adkins property in Brooklyn Center. This purchase agreement was referenced in item number 3(b) on the March 13 EDA agenda. Staff will be prepared to discuss this item Monday evening. • cc: Gerald G. Splinter MRP' 09 '95 15:00 HOLMEti £.: GRR'VEN P . E/8 I j • PURCHASE AGREEMENT (PDQ) Brooklyn Center, Minnesota March _ , 1995 RECEIVED OF Economic Development Authority in and for the City of Brooklyn Center ( "Buyer ") the sum of one dollar and other good and valuable consideration ($1.00) DOLLARS as earnest money and in part payment for the purchase of property at _ _ situated in the County of Hennepin, State of Minnesota, and legally described as follows, to -wit: Lots 1 and 2, Block 1, E and H Properties Addition, according to the recorded plat thereof, Hennepin County, Minnesota including the following listed personal property: See Exhibit A all of which property the undersigned ( "Seller ") hereby agrees to sell to the Buyer for the sum of Five Hundred Thousand and no /100 (500,000.QG)) DOLLARS, which the Buyer agrees to pay in the following manner. Earnest ;money herein paid $1.00 and $499,999, cash, on or before the date of Closing. (See Exhibit A for additional terms and conditions.) Subject to performance by the Buyer the agrees to execute and deliver a general Warranty Deed conveying marketable title to said premises. The Buyer shall pay the real estate taxes due in the year 1996 and any unpaid installments of special assessments payable therewith and thereafter. Real estate taxes due in the year of Closing together with installments of special assessments payable therewith shall be prorated as of the date of Closing. The further agrees to deliver possession not later than the date of Closing provided that all the conditions of this agreement have been complied with. In the event this property is destroyed or substantially damaged by fire or any other cause before the Closing date, this agreement shall become null and void, at the purchaser's option, and all monies paid hereunder shall be refunded to it. The Buyer and Seller also mutually agree that pro rata adjustments of rents interest, Y Y r ert current operating expenses) shall e c' income p } and r 'n the case of insurance city water {and x property Y p g be made as of date of Closing. The Seller shall, within a reasonable time after approval of this agreement, furnish an abstract of title certified to date (or a Certificate of Title and Registered Property Abstract) bath also to include proper searches covering bankruptcies, and State and Federal judgments and liens. • The Buyer shall be allowed 20 days after receipt thereof for examination of said title and the making of any objections thereto, said objections to be trade in writing or deemed to be waived. If any objections are so made the Seller shall be allowed 120 clays to make such title marketable. 3aPfiS746 BR305 -50 MRR 09 '95 15:01 HOLMES & GRR`dEN F.3/3 Pending correction of title the payments hereunde r required shall be postponed, but upon correction of title sand within 14 days after written notice, the Buyer shall pe rform s thi agreement according to its terms. If said title is not marketable and is not made so within 120 days from the date of written objections thereto as above provided, or if such objections are not waived by Buyer, this agreement shall be void, and neither principal shall be liable for damages hereunder to the other principal and all money theretofore paid by the Buyer shall be refunded, but if the title to said property be found marketable, or be so made within said time, and said Buyer shall default in any of the agreements and continue to default for a period of 10 days, then and in that case the may terminate this contract, and on such termination all the payments made upon this contract shall be retained by said , as their respective interests may appear, as liquidated damages, time being of the essence hereof; but this provision shall not deprive either party of the right of enforcing the specific performance of this contract provided such contract shall not be terminated as aforesaid, and provided action to enforce such specific performance shall be commenced within six months after such right of action shall arise. In Presence of pDQ FOOD STORES OF MINNESOTA, INC., a Minnesota corporation By . Its In Presence of We hereby agree to purchase the said property for the price and upon the temm above mentioned, and subject to all conditions herein expressed. i ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE QTY OF BROOKLYN CENTER, MINNESOTA I By Its By Its i seoes:aa @R3a5 -SG MAR 03 95 15:01 HOLMES & GRRVEN ' P.4. S i PDQ • EXHIBIT A ADDITit?NAL TERMS APP CONDITIONS 1. Closing. Closing shall take place within 10 days following the date upon which all of the Preconditions to Closing have occurred or have been waived by the party in whose favor they run. If Closing does not take place by ,either Party may declare this Purchase Agreement null and void, whereupon Seller shall return the Earnest Money to Buyer and thereupon the parties shall be excused of any further liability to one another. 2. Preconditions to Closinati Closing shall not take place until each of the following has occurred. a. Seller has prepared and delivered to Buyer, if required, a Well Disclosure Certificate; b. Buyer is satisfied, based upon its examination of title to the Property or upon the _ receipt of a commitment for title insurance, that the same is free of any liens, encumbrances, restrictions or other matters affecting marketability; i C. Seller has provided the Buyer with evidence satisfactory to Buyer that the rights of all third parties to possession of the Property have been tet7minated, and that on the date of Closing, Buyer shall have the right to immediate and unrestricted possession of the Property, and d. All other acts or events which, as provide in this Agreement, must occur on or i before Closing have occurred. In the event that all of the foregoing preconditions have not been fulfilled by the last date for Closing described in paragraph 2 above the Buyer shall have the aright to terminate • this Agreement as of such date. Jrssi4 A - aRs05 -S� MRP 03 '55 15 ;OE HOLME5 & GRRVE'9 i 3. Closing Activities In the event that all preconditions to dosing have been met by the i at date of Closing, Seller agree to deliver to Buyer the following in Clan g: a. General Warranty Deed containing, if appropriate, a recitation that no water wells are located on the property; b. Standard form Seller's Affidavit showing that there are no judgments, liens or i ether actions or things which would effect marketability of title; i C. Documentation in a form and content acceptable to Buyer showing that all rights of third parties to possess all or part of the Property have been extinguished; d. Federal Form W -9; } e. Affidavit of non - foreign national; and f. Such other and further instruments as may be reasonably required to perfect title to the Buyer. 1� 4. Seller warrants that any real estate agent or broker fees or commissions earned as a consequence of this transaction will be paid by the Seller at Closing. Seller further agree to indemnify and hold harmless the Buyer from any claims made against Buyer or the Property for any such fees or commissions. 5. Except as to the costs and obligations specifically placed on Seller hereunder and except for legal fees incurred by Seller, Buyer shall be responsible for paying all costs associated with the Closing of this transaction. f. Seller shall have until the date of possession to remove any items of personal property and any fixtures currently located on the Property; provided, however, that such removal shall not render the Property unsafe or insecure. All items of personal property and fixtures remaining on the Property on the date that possession vests in the Buyer shall i become the absolute property of Buyer fire- of any interest or right of Seller. At Closing, Jseaao A -2 BR365 -�U MRR 05 ' 95 1 � �_1c H 7Lf 1E5 & GRRVEN P.6 /8 if so requested by Buyer, Seller shall execute and deliver a bill of sale for all such remaining personal property. 7. The Deed will contain a specific recitation to the effect that the conveyance includes all n adjac streets, a lley s, rights -of -way and inte of Seller to a ad'ac right, true and e y J easements. 8, Hazardous Substances. a. Definition For purposes of this Agreement, "Hazardous Substance" means hazardous waste, toxic substances, polychlorinated biphenyls, asbestos or related materials and also includes, but is not limited to, substances defined as "hazardous substances" or "toxic substances" in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 906 1, et ., Hazardous Materials 'Transportation Act, 49 U.S -C. See. 6901, et Lea., or as "hazardous substance," "hazardous waste" or "pollutant or contaminant" is the Environmental Response and Liability Act, Min Statutes, § 115B.01, et . The term does include petroleum, including crude oil or any fraction thereof, natural gas, natural gas liquids, liquified natural gas, synthetic gas usable for fuel or mixtures thereof. For the purpose of this Agreement the term also includes tanks or vessels customarily used for the storage of such substances whether or not currently in use for that purpose. i b. Representation by Seller Seller represents as follows: i. Seller has not placed or deposited any Hazardous Substance on or under the Property or improvements; and I Seller has no knowledge of the presence of any Hazardous Substance on or under any part of the Property or improvements, Jaa5514fi A - 3 68309 -50 MRR 09 '95 15:03 HOLMES & GRRVEN P.7�'8 C. Contingency for Environmental Investig Buyer shall have the right until the date of Closing, to investigate and test, at Buyer's expense, to determine whether Hazardous Substances are located in, on or under the Property or improvements thereon. If during such period, Hazardous Substances are found in, on or under the Property or improvements thereon as evidenced by a written report prepared by a recognized environmental expert ( "Report "), or if Buyer is not satisfied that the Property is free of Hazardous Substances, Buyer shall have the right to give notice to Seller that it elects to terminate this Agreement and upon such notice being given this Agreement shall be null and void and all Ernest Money shall be promptly refunded. Along with the :notice, Buyer shall also provide Seller with a copy of any Report. 9. Settlement of Pending Litigation At Closing, and as a precondition to the payment of the purchase price and the transfer of title to the Property, the Seller and the City of Brooklyn Center shall execute and deliver to one another a stipulation of dismissal in the case of , in substantially the form of the attached Exhibit B. 10. Water Wells Seller represents that there are (no) water wells located on the Property. 11. Rubbish, Litter and Debris Seller shall transfer the Property in a condition which is reasonably free of rubbish, litter, debris and the like. Buyer shall have the right to inspect the property immediately prior to Closing to verify the condition of the Property. If excessive amounts of such material are found by such inspection, Buyer may withhold from the purchase price an amount equal to 150% of Buyer's estimated cost to remove and dispose of such material. Any unexpended portion of such withholding shall be promptly returned to Seller. �s JHA9514h A -4 F3R305 -5q MRR 0'3 ' 15:04 HOLMES a GRRVEM 12. Acquisition in Lieu of Condem ation parties acknowledge that this purchase fe agreement was negotiated pursuant to the action of Buyer contained in EDA Resolution No. which gave Buyer the right to acquire the Property by either negotiation or condemnation. This purchase is in lieu of the authority to condemn granted in such Resolution. i i i i JnL$514e Il A .5 HEt305 -r0 319 mmi Co ssioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING THE PURCHASE OF REAL PROPERTY AND AUTHORIZING EXECUTION OF PURCHASE AGREEMENT WHEREAS, the Board of Commissioners of the Economic Development Authority in and for the City of Brooklyn Center, Minnesota (EDA), has determined that it is in the best interests of the EDA and the public to acquire certain real estate described as Lots 1 and 2, Block 1, E and H Properties Addition in the City of Brooklyn Center (the "Property"); and WHEREAS, the EDA staff has negotiated a proposed purchase agreement between the owner of the Property and the EDA. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that: 1. The Board of Commissioners hereby approves the purchase by the EDA of the Property described above for the purchase price of $500,000, and subject to the terms and conditions of the purchase agreement. 2. The President and Secretary are authorized and directed to execute the purchase agreement between the owners of the Property and the EDA for the purchase of the Property and all other documents necessary to the completion of the purchase transaction. 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. Council Mceting Date 3/13/1995 City of Brooklyn Center Agenda Item Number 3 G Request For Council Consideration • Item Description: Resolution Declaring Computer Equipment and an Automatic Floor Scrubber to be Surplus Property Department Approval: Charlie Hansen, Finance Director Manager's Review /Recommendation: t No comments to supplement this report Comments below /attached Recommended City Council Action: Passage of the attached Resolution. Summary Explanation: (supporting documentation attached Yes The Earle Brown Heritage Center has a six older personal computers which were purchased in 1988 and 1989 and which no longer meet E.B.H.C. needs. Some of these items are still in working condition O and it may be possible to sell them either to a computer re- seller or to the public through the city auction. Others are broken or are so obsolete that they no resale value. For these, it would be a waste of staff time to try to sell them and it would be better to dispose of them. E.B.H.C. also has an automatic floor scrubber which was purchased in 1990. Floor maintenance equipment receives very heavy usage in a commercial setting and this item has become worn out. A replacement scrubber was purchased in 1994. It may be possible to trade the 1990 model in on a commercial vacuum cleaner. A small number of companies buy used computer and cash register equipment for the purpose of reselling it to others. That is where we are likely to get the best price. Even there, computers based on Intel 286 chips are likely to sell for $100 at most. Some of ours have broken floppy disc drives or hard drives and probably can't be sold. The attached list identifies the items. • • Quantity Fixed Asset Description Year Purchased Earle Brown Heritage Center: 6 Hewlett Packard Vectra ES12 personal computers 1988-1989 1 Hako Automatic Floor Scrubber 1990 i i Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION DECLARING COMPUTER EQUIPMENT AND AN AUTOMATIC FLOOR SCRUBBER TO BE SURPLUS PROPERTY WHEREAS, the Earle Brown Heritage Center has older computer equipment which is technologically obsolete and no longer meets the E.B.H.C.'s needs; and WHEREAS, the E.B.H.C. has an automatic floor scrubber which is worn out and no longer usable; and WHEREAS, staff will seek potential buyers of the surplus equipment either through negotiated sales, trade in on new equipment, or by placement in the City Auction. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, as follows: 1. The old computer equipment and the automatic floor scrubber are declared to be surplus property. 2. The City Manager is authorized to negotiate a sale with potential buyers, place the items in the City Auction, or discard them as best meets the City's interest. Date President The motion for the adoption of the foregoing resolution was duly seconded by member 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.