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HomeMy WebLinkAbout2010 06-28 HRAP HRA MEETING City of Brooklyn Center • June 28, 2010 AGENDA 1. Call to Order —The HRA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including HRA (Housing and Redevelopment Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Housing and Redevelopment Authority (HRA) 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. December 14, 2009 — Regular Session 4. Commission Consideration Items a. Resolution Approving and Authorizing Execution of a License Agreement and an Amended and Restated Parking, Access, and Pedestrian Link Easement Agreement Between the Housing and Redevelopment Authority in and for the City of Brooklyn Center and Brooklyn Hotel Partners, LLC Requested Commission Action: — Motion to adopt resolution. 5. Adjournment • HRA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION DECEMBER 14, 2009 CITY HALL — COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Housing and Redevelopment Authority (HRA) met in Regular Session called to order b Chair Tim Willson at 7:02 Y p.m. 2. ROLL CALL Chair Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were Executive Director /City Manager Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Police Chief Scott Bechthold, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Carol Hamer, Timesaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Roche seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. September 14, 2009 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. FINAL MARKET VALUE LEVY AND BUDGET RESOLUTIONS 1. HRA RESOLUTION NO. 2009 -03 ESTABLISHING A FINAL PROPERTY TAX FOR THE PURPOSE OF DEFRAYING THE COST OF OPERATION, PROVIDING INFORMATIONAL SERVICES AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES CHAPTER 469.033 FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY FOR FISCAL YEAR 2010 • 12/14/09 -1- DRAFT i it Manager Curt Bo ane discussed the history of the 2010 Budget process Executive Director/City y rY g p Y g g • and presented an overview of the following budget information: • Proposed 2010 City Levies — Total Proposed Levy of $13,568,972 • 2010 Council Goals • 2010 General Fund Overview • City of Brooklyn Center revenues by Source — 2006 -2010 Fiscal Years • 2010 General Fund Sources of Revenue • City of Brooklyn Center Expenditures by Department — 2006 -2010 Fiscal Years • General Fund Expenditures by Type • Water Utility • Sewer Utility • Storm Drainage Utility • Street Light Utility • Recycling Utility • Capital Improvement Projects • Sources of Capital Improvement Funding • Property Taxes • 2010 Proposed Property Tax Levy • Tax Capacity for Taxes Payable in 2010 • Change in Median Residential Value (Pay 2009 and Pay 2010) • Change in Median Residential City Tax (Pay 2009 and Pay 2010) Mr. Boganey stated the purpose of the proposed resolution. • Commissioner Roche moved and Commissioner Ryan seconded adoption of HRA RESOLUTION NO. 2009 -03 Establishing a Final Property Tax for the Purpose of Defraying the Cost of Operation, Providing Informational Services and Relocation Assistance Pursuant to the Provisions of Minnesota Statutes Chapter 469.033 for the City of Brooklyn Center Housing and Redevelopment Authority for Fiscal Year 2010. Motion passed unanimously. 2. RESOLUTION NO. 2009 -04 APPROVING THE FINAL BUDGET FOR THE CITY OF .BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY PURSUANT TO MINNESOTA STATUTES CHAPTER 469 Commissioner Lasman moved and Commissioner Ryan seconded adoption of HRA RESOLUTION NO. 2009 -04 Approving the Final Budget for the City of Brooklyn Center Housing and Redevelopment Authority Pursuant to Minnesota Statutes Chapter 469. Motion passed unanimously. 5. ADJOURNMENT • 12/14/09 -2- DRAFT Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Housing and Redevelopment Authority meeting at 7:26 p.m. Motion passed unanimously. i 12/14/09 -3- DRAFT i HRA Agenda Item No. 4a HRA ITEM MEMORANDUM DATE: June 23, 2010 TO: Curt Bo ane City Manager g Y� Y g FROM: Gary Eitel, Director of Business and Development SUBJECT: Resolution Approving and Authorizing Execution of a License Agreement and an Amended and Restated Parking, Access and Pedestrian Link Easement Agreement Between the Housing and Redevelopment Authority in and for the City of Brooklyn Center and Brooklyn Hotel Partner, LLC Recommendation: It is recommended that the Housing and Redevelopment Authority consider approval /adoption of Resolution Approving and Authorizing Execution of a License Agreement and an Amended and Restated Parking, Access and Pedestrian Link Easement Agreement between the Housing and Redevelopment Authority in and for the City of Brooklyn Center and Brooklyn Hotel Partner, LLC Background: • The following outlines the actions of the City Council, the EDA and the HRA pertaining to the development agreement for the phased development of Lot 1, Block 1, Brooklyn Farm 2 nd Addition. On October 23, 2006, the City Council and the EDA adopted the following resolutions relating to the development plans of the Brooklyn Hotel Partners, LLC for the development of an Embassy Suites Hotel and a 2 phase for a complementary hotel: City Council Resolution No. 2006 -121, ` Resolution Approving Property Tax Abatement and Authorizing Execution of a Development Agreement EDA Resolution No. 2006 -12, ` Resolution Deleting Property From Tax Increment District No 2 and Approving and Authorizing Execution of the Development Agreement. On July 23, 2007, the EDA adopted Resolution No. 2007 -12, approving the First Amendment to the Development Agreement, which revised the construction schedule and approved the Parking, Access and Pedestrian Link Easement Agreement. owners of the land for the Earle Brown Heritage Additionally, on July 23, 2007, the HRA, ow g Center, adopted Resolution No. 2007 -01, HRA Resolution A rovin and Authorizing p PP g g Execution of a Parkiniz Access and Pedestrian Link Easement Agreement between the Economic • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life andpreserves the public trust HRA ITEM MEMORANDUM Development Authority Development Authority, the City of Brooklyn Center Brooklyn Center, and Brooklyn Hotel Partners, LLC is On October 8, 2007, the EDA approved Resolution No. 2007 -19, Resolution Approving and Authorizin g P g Execution of a Second Amendment to the Development Agreement. This i amendment extended the closing date and revised the construction schedule. On December 27, 2007, the EDA at a Special Meeting adopted Resolution No. 2007 -23, Resolution Approving a Third Amendment to the Development Agreements and Certain Lender Consents /Subordination and Authorizing the EDA Executive Director to Execute Certain Documents The Third Amendment provided for the allocation of the tax abatements and business subsidy job requirements to the respective phases; approved assignment and subordination of the development agreement in favor of Prudential Insurance Company of America; and consented to the assignment of Right to Receive Tax Abatement Payments to the Hurlbut -Zeppa Charitable Trust AR. On October 13, 2008, the EDA approved Resolution No. 2008 -10, ` Resolution Approving Lease Agreement with Brooklyn Hotel Partners LLC for the D -Barn at the Earle Brown Heritage Center and Authorizing the EDA Executive Director to Execute Said Agreement On June 5, 2009, the Developer was notified that an Event of Default as defined in the Development Agreement had occurred. Over the last year, the City and Developer have worked on a compromise to settle their • respective rights and claims under the Development Agreement and the Lease Agreement. On June 16, 2010, the City received confirmation that the Developer had executed the Fourth Amendment to the Development Agreement. On June 18, 2010, the City received confirmation that the Hurlbut -Zeppa Charitable Trust had executed the security interest subordination agreement pertaining to the right of setoff and security agreement. Fourth Amendment to the Development Agreement The Fourth Amendment to the Development Agreement provides a global resolution to the default of the Development Agreement and the D -Barn Lease Agreement. The major elements of this global resolution include the following components: 1. The construction of the pedestrian link has been removed as a Developer's responsibility under the terms of the minimum improvements of Phase L The EDA will have the sole and absolute discretion on the design, location, schedule and construction of the link. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust • HRA ITEM MEMORANDUM . 2. The Developer relinquishes all rights and obligations to develop Phase H and is not entitled any tax abatements from the Phase II site development. 3. The EDA agrees to provide the Developer with a right of first offer for the Phase 11 site until July 1, 2011. The EDA maintains sole and absolute discretion to accept, reject or conditionally accept an offer from the Developer. 4. The payment of tax abatements for the Phase I (Embassy Suites Hotel Site) are subject to a right of set off by the City for all payments owing the authority by the Developer as a tenant under the D -Barn Lease Agreement and License Agreement for use of the Pedestrian Link. 5. An Amended and Restated Parking, Access and Pedestrian Link easement Agreement provides the EDA with total discretion on the location and construction of the pedestrian link on the Earle Brown Heritage Center site. The agreement maintains the easement at its original location on the hotel site with minor adjustments to the legal description and replaces the easement on the HRA site with a non - exclusive license agreement. This license agreement identifies pedestrian link costs associated with the ownership, operations oration and maintenance of the link; provides a use charge to the Developer of 50 percent of these annual pedestrian link costs; and includes provisions for the use of the Right of Set -Off and Security S Agreement. Additionally, the agreement addresses the common entrance driveway to the Phase II site and includes similar cost sharing provisions when the site is developed. 6. The First Amendment to the D -Barn Lease provides for the commencement of this ten year lease to occur upon the issuance of an occupancy permit for the completed link; the developer's payment of $72,181, which represents certain lost revenues arising from the adjustment of the commencement of the term of the Lease; and includes provisions for the use of the Right of Set -Off and Security Agreement. 7. The Security Interest Subordination Agreement provides the subordination of any of the agreements to the Right of Set -Off granted by the Developer to the EDA and BRA in the Lease and License. The lender, Hurlbut -Zeppa Charitable Trust AR, consents to the grant by the Developer a security interest in the Tax Abatement payments to the EDA and BRA as collateral security for the Developer's payment obligations under the Lease and License. The attached resolution provides for the HRA approval and authorization to execute the following components of the Fourth Amendment to the Development Agreement: L Exhibit A — the License Agreement • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life anti preserves the public trust HRA ITEM MEMORANDUM 2. Exhibit C — the Amended and Restated Parking, Access and Pedestrian Link Easement Agreement. • Attached for you reference is a copy of the site plan which identifies the parking, access and pedestrian link easement areas. Budget Issues: There are no issues to the current HRA budget; however, the License Agreement includes the potential of significant cost savings with the ownership, operations and maintenance of the pedestrian link. Council Goals: Strategic: 1. We will aggressively proceed with implementation of City's redevelopment plans Ongoing: 1. We will move toward maintaining or lowering the level of City property taxes • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust .; :- mzmvv<astnucaam�memr,�gct nr�axbnsst kt.�+ststt nv:r* ^�evssr: ��rassl. �-::: srr� •�•rz.:.C�axxntr_Frncmcs�m+asr,y ... nrrmana<.- n,�:ot,k:,.�.t ±m,..r. x...R.v......_....rom.k. - .. ..._on.n.._.r...,.,........,... • S9+!C:l>;SY:.°48... �S�:t ^. CPS. WS... �str3ii!C ^_vtCL�YAattititl�"`� -: rT:raVllvtl�iessxAfl4iA�. Sit. S4.< 9W` zti�. Xt... ptl!".! t4al.S iseii' rm.... x>. iq :O:.t+r,:..'m4i:aa+*rHa,.bnxMm 1 EXHIBIT A - SITE PLAN u-- ur- rr-- r+t-- M+F -•+f � e--. x Y rt+ •r ���- a�-- +c�- - - � x _ x,,, _ Y ^� � x'x � � ^ � _ � EARL.E BROWN OR ° Pmxwa mr AREA �� DEVELOPER 'TRACT 't " I LOT i, 810CK 1 ° BROOKLYN FARM 2ND AMMON � n I i.7 SHARED DRIVEWAY AREA ° DEVELOPER/HRA ■c wtc maraK FABLE GROWN a NERfIAGE• EDA TRACT o LOT $ BLOCK 2 BROOKLYN FARM 2ND ADDLTION G SHARED DRIVEWAY AREA DEVELOPER/EOA ®CJ n P acmrmr V'� n PORTION OF PEDESTRIAN LINK CORIOOR AREA ON DEVELOPER TRACT SEE IL•RLL OEStiYI+f1oN PEDES7RIAN LINK CORRIDOR AREA F TRACT F 6115 MILE RLS 1594 BRO OWYE C�1Y OF EXff A - BROOKLYN CENTER �oean mrtc waaw Commissioner introduced the following resolution and moved its adoption: HRA RESOLUTION NO. • RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A LICENSE AGREEMENT AND AN AMENDED AND RESTATED PARKING, ACCESS AND PEDESTRIAN LINK EASEMENT AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND BROOKLYN HOTEL PARTNERS, LLC WHEREAS, the Economic Development Authority of Brooklyn Center (the "EDA" ) has entered into a Development Agreement, as amended the "Development Agreement") p �' � ( p � between the EDA, the City of Brooklyn Center and Brooklyn Hotel Partners, LLC, a Minnesota limited liability company (the "Developer "), in connection with a hotel development (the "Project' to be constructed by the Developer; and WHEREAS, the Housing and Redevelopment Authority in and for the City of " Heritage Center is a r Earle Brown Brooklyn Center the Authors as the owner of the land for the g Yn ( "Authority"), parry to an easement agreement-attached Agreement; and WHEREAS, the EDA has caused to be prepared a Fourth Amendment to Development Agreement (the "Amendment ") between the EDA and the Developer providing for, among other things, (1) a modification of Developer's obligations, and (2) a modification to the existing Parking, Access and Pedestrian Link Easement Agreement attached to the Development Agreement (the "Easement Agreement ") among the EDA, the Authority and the Developer, and (3) . the granting of a license in favor of the Developer to use the pedestrian link on the Earle Brown form attached to the Heritage C nter roe if and when constructed b the EDA in the rm e rtY� Y property, Amendment (the "License "). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Brooklyn Center, that the Board of Commissioners hereby approves the License and the Amended and Restated Parking, Access and Pedestrian Link Easement Agreement attached to the Amendment in substantially the form on file with the Authority in connection with the Amendment, the Easement Agreement and the Project. The Executive Director of the Authority is hereby authorized to execute the License Agreement and the Amended and Restated Access, Parking and Pedestrian Link Easement Agreement on behalf of the Authority. June 28, 2010 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.