HomeMy WebLinkAbout1994 07-11 EDAP Regular Session EDA AGENDA
18 CITY OF BROOKLYN CENTER
JULY 11, 1994
(following adjournment of City Council meeting)
1. Call to Order
2. Roll Call
3. Approval of Agenda and Consent Agenda
-All items listed with an asterisk 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 in its normal sequence on the
agenda.
4. Approval of Minutes:
* a. June 27, 1994 - Regular Session
5. Public Hearing: 7 :00 p.m.
a. Regarding Sale of EDA Owned Property at 6601 Bryant Avenue North, Brooklyn
Center, Minnesota
6. Resolution:
a. Directing the Negotiation of a Purchase Agreement for 7000 Brooklyn Boulevard
7. Adjournment
Council Meeting Date July 11,1994
City of Brooklyn Center Agenda Item Number
Request For Council Consideration
• Item Description:
EDA MINUTES - JUNE 2, 1994 - REGULAR SESSION
Department Approv .
Brad Hof , Director of Community Development
Manager's Review/Recommendation:
No comments to supplement this report Comments below /attached
Summary Explanation: (supplemental sheets attached
Recommended City Council Action:
MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE C I TY OF BROOKLYN
CENTER TN THE COUNTY OF HENNEPIN AND THE STATE
OF MINNESOTA
REGULAR SESSION
JUNE 27, 1994
CITY HALL
CAL TO ORDE
The Brooklyn Center Economic Development Authority (EDA) met in regular session and
was called to order by President Todd Paulson at 11 p.m.
LL CA
AL L
President Todd Paulsen, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and
Kristen Mann. Also present were City Managcr Gerald Splinter, Director of Community
Development Brad Hoffman, Community Development Specialist Tom Bublitz„ Building
Inspector Dave Fisher, Director of Public Services Diane Spector, City Attorney Charlie
LeFevere, and Council Secretary Barbara Collman.
APPROVAL OF AGENDA AND CONSENT AGEND,�
President Paulson inquired if any Commissioner requested any items be removed from the
consent agenda. Item 6a was removed from th.e consent agenda.
APPROVAL OF MINUTES
JUNE 13, 1994 - REGULAR SESSION
There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to
approve the minutes of the June 13, 1994, EDA meeting as printed. The motion passed
unanimously.
EDA HOME REHABILITATION DEFERRED LOAN PROGRAM
The Community Development Specialist explained the recommendations wade by the
Housing Commission in regard to the Deferred Loan Program.
President Paulson commented he liked the exterior maintenance standard proposal.
There was a discussion concerning the residency requirement.
6/27/94 - I -
Commissioner Scott showed concern a resident of one and one -half years had reached the
top of the list. The Community Development Specialist said it is a waiting liar and it is first
come, first served based on when the application is received.
Commissioner Scott noted it had been said previously it takes two years to get to the top
of the list so this particular situation appears to be different yet there is not an urgent health
or safety issue. The Community Development Specialist said the list is determined by the
date on the application. He added when he had said two years he was only estimating.
Commissioner Mann asked whether eligibility is established before an application is received.
The Community Development Specialist said some screening is done over the phone which
results in applications not being sent out, but the actual eligibility procedure is handled by
the County after the resident reaches the top of the list.
President Paulson questioned whether there is any legal prohibition against using Iength of
residency as a requirement. The City Attorney suggested he be allowed time to Study the
question before a requirement is established, as it may not be constitutional.
President Paulson noted it might be acceptable if the requirement is only a factor. The City
Attorney Said it is a question of whether the body as a whole acted on the matter.
President Paulson suggested the recommendations be accepted as is but further investigation
be done concerning a length of residency requirement.
Commissioner Scott agreed. She added residents should not take unfair advantage of the
program but increasing the lien period makes it a less profitable situation. She said people
should wait their turn unless there is a health and safety issue. She asked to be informed
concerning residents with only one and one -half years of residency reaching the top of the
list.
RESOLUTION N0, 94 -24
President Paulson introduced the following resolution and moved its adoption.
RESOLUTION ADOPTING HOUSING COMMISSION RECOMMENDATIONS
REGARDING THE ECONOMIC DEVELOPMENT AUTH01<1TY'S HOUSING
REHABTLITATION DEFERRED LOAN PROGRAM
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Scott, and the motion passed unanimously.
60 /94 - 2 -
RESOLUTION NO. 94 -25
Commissioner Scott introduced the following resolution and moved its adoption:
RESOLUTION APPROVING TWO (2) BROOKLYN CENTER ECONOMIC
DEVFT.OPMENT AUTHORITY GRANTS (FILE NOS. H -118 [8044] AND FILE NO. H-
119 [80451)
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Mann, and the motion passed unanimously.
The Community Development Specialist reported $15,000 will not cover the project and the
grant is written so it meets requirements.
Commissioner Rosene questioned the cost for smoke detectors under Item No. 28. He
asked how competitive the bids were. He said bids such as this cause him to be reluctant.
Commissioner Mann commented the smoke detectors are electrically wired and that is the
explanation for the cost.
Commissioner Rosene asked whether bids are checked. The Community Development
Specialist answered the Building Inspector checks bids and the program attempt to specify
in order to choose the medium priced quality product for the projects.
Commissioner Rosene asked whether the bid costs include labor. The Community
Development Specialist confirmed that they do.
The Building Inspector explained that often a contractor lumps his profits together on one
item, making that item seem high.
Commissioner Rosene asked the Buildin g Inspector ector whether he is comfortable with the bids
p
in question. The Building Inspector said he is. Commissioner Rosene stated he would trust
the Building Inspector as he is knowledgeable.
President Paulson mentioned the comfort level in regard to funding.
Commissioner Mann mentioned the property being brought up to Section 8 standards.
RESOLUTION NO, 94-M
Commissioner Mann introduced the following resolution and moved its adoption:
RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY GRANT (FILE NO. H -117 18U4:31).
6/2 - 1 7 1 10 -- -AT - 3 -
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Rosene, and the motion passed unanimously.
There was a motion by Commissioner Scott and seconded by Commissioner Mann to accept
the Exterior Maintenance Standard. The motion passed unanimously.
The Community Development Specialist asked whether he may continue to bring emergency
health and safety cases to the EDA. He was told he may.
Commissioner Mann inquired about whether the lease is for 30 days and whether it will
remain the same. The Community Development Director said it is for 30 days and will not
be lowered. He added in some cases it might be better to terminate the lease.
RESOLUTION Nom). 9_4 -27
Commissioner Mann introduced the following resolution and moved its adoption:
RESOLUTTON DIRECTING THE NEGOTIA'T'ION OF A PURCHASE AGREEMENT
FOR 7000 BROOKLYN BOULEVARD
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Scott, and the motion passed unanimously.
ADJOURNMENT
Thcrc was a motion by Commissioner Mann and seconded by Commissioner Rosene to
adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic
Development Authority adjourned at 11:36 p.m.
Todd Paulson, President
Recorded and transcribed by:
Barbara Collman
TimeSaYer Off Site Secretarial
6/27194 .4 -
Co=il Meeting Date 7/11/94
31 City of Brooklyn Center Age hm Nom«
Request For Council Consideration
• Item Description:
PUBLIC HEARING REGARDING SALE OF EDA OWNED PROPERTY AT 6601 BRYANT
AVENUE NORTH, BROOKLYN CENTER, N1NNESOTA
Department Approval:
Tom ublitz, Community Development Specialist
Manager's Review/Recommendation:
No comments to supplement this report Comments below /attached
Summary Explanation: (supplemental sheets attached
At the June 13, 1994 EDA meeting, the EDA considered an offer to purchase the EDA owned lot at
6601 Bryant Avenue North from Mr. Calvin Wright for $24,000, which is the established fair market
• value for the lot. The EDA reviewed the house plans proposed by Mr. Wright at the June 13th
meeting, and authorized a public hearing regarding the terms and conditions of the sale of the lot to Mr.
Wright. The public hearing is scheduled for the July 11, 1994 EDA meeting. Staff is preparing a
purchase agreement and contract for deed which will define the terms and conditions of the sale of the
property. Staff is still in the process of drafting the documents and has not had an opportunity to
discuss them with Mr. Wright. Therefore, staff is requesting the public hearing be opened on July 11th
and kept open until the August 8, 1994 EDA meeting to allow staff additional time to review the
purchase agreement and contract for deed with Mr. Wright prior to presenting them at the public
hearing.
I have spoken with Mr. Wright and holding the public hearing open to August 8th does not present any
timing problems for him since he has not sold his existing house as yet.
Recommendation: Staff recommends opening the public hearing on the sale of the EDA owned
property at 6601 Bryant Avenue North and continuing the public hearing to the August 8, 1994 EDA
meeting.
•
Ca =9 Meeft Date 7/11/94
City of Brooklyn Center Agen& R m xwabed 46 Q /
Request For Council Consideration
• Item Description:
RESOLUTION DIRECTING THE NEGOTIATION OF A PURCHASE AGREEMENT FOR 7000
BROOKLYN BOULEVARD
Department Approval:
f
BrtHoffman, Director of Com ty Development
Mara g er s Review/Recommendation:
No comments to supplement this report Comments below /attached
Summary Explanation: (supplemental sheets attached � )
See resolution accompanying this request form.
�
JUL 07 34 09:1E HOLNE5 !FRvEN
P.7
PURCHASE AGREEMENT
This Purchase Agreement is made , 1994,
by and between MARQUETTE BANK BROOKDALE, a Minnesota banking
corporation, having offices at 5620 Brooklyn Boulevard, Brooklyn
Center, Minnesota 55429 ( "Seller "), and the ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, a public body
corporate and politic under the laws of the State of Minnesota,
having offices at 6301 Shingle Creek Parkway, Brooklyn Center,
Minnesota 55430 ("Buyer ").
Recitals
A. Seller is the owner of that certain real estate located
at 7000 Brooklyn Boulevard, City of Brooklyn Center, Hennepin
County, Minnesota, legally described as:
Lot 1, Block 1, REALTY TERRACE
together with all improvements thereon (the "Property ").
B. Buyer desires to acquire the Property by voluntary sale
in fee simple absolute.
C. Seller agrees to sell they Property to Buyer.
Agreeme
In consideration of the mutual agreements made herein, Seller
and Buyer agree as follows:
1. Offer /Acceptance Buyer agrees to purchase and Seller
agrees to sell the Property under the terms and conditions stated
in this Agreement. There is no personal property included in the
sale.
2. Purchase Price The purchase price for the Property
shall be one Hundred Seventy -one 'Thousand and no /100ths Dollars
($171,000.00) and shall be payable in cash or by certified funds or
the equivalent on the Closing Date (as hereafter defined).
3. Marketability of Title In lieu of an abstract, Seller
has delivered to Buyer an owner's commitment of title insurance in
the full amount of the purchase price. The Buyer shall have ten
(10) days after execution of this agreement for the examination of
the commitment and' to deliver written objections, if any, to the
Seller. Seller shall have 20 days after receipt of Buyer's written
objections to make title marketable. Seller shall pay the entire
premium for the title insurance policy.
a. If the Seller proceeds in good faith to make title
marketable but fails to do so within the 20 day period, Buyer
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JUL O f ' "54 C i i � GF
H : Li'1ES _ or. H P.
may terminate this Agreement without any liability on its
part.
b. If Seller fails to make title marketable within the
20 day period due to Seller's failure to proceed in good
faith, or, if title is marketable but Seller defaults in its
obligations under this Agreement, Buyer may seek any of the
following remedies permitted under law: (1) terminate this
Agreement by notice to Seller; or (ii) seek specific
performance of this Agreement, provided that the action is
commenced within 6 months after the cause of action arises.
C. If title is marketable or is corrected within the 20
day period and Buyer defaults in any of the agreements herein,
Seller may terminate this Agreement and retain all payments
made under this Agreement as liquidated damages. The
termination period for a Notice of Cancellation of this
Agreement shall be 30 days as permitted by Minnesota Statutes,
Section 559.21, subd. 4.
Notwithstanding the above, if Seller provides Buyer with a title
insurance policy as marked up on - the attached Exhibit B. Buyer
shall accept the title as marketable pursuant to this paragraph 3.
4. Conditions to Closing The closing of the transaction
contemplated by this Agreement and the obligation of the Buyer to
purchase the Property shall be subject to Seller delivering title
to Buyer pursuant to paragraph 3 above.
5. Real Estate Taxes . On or before the Closing Date, Seller
Will pay all delinquent real estate taxes, penalties and interest,
if any. Real estate taxes payable in the year of closing will be
prorated between Buyer and Seller as of the Closing Date. Seller
warrants that real estate taxes payable in 1995 are non - homestead.
6. Closing Date The closing of this transaction shall take
place on July 12, 1994 at the of of Seller.
7. Documents to be Delivered at Closing on the Closing,
Date, Buyer shall deliver to Seller: the Purchase Price and Seller
shall deliver to Buyer:
a. A duly executed limited warranty deed, conveying title to
the Property to Buyer, subject only to: (i) building and
zoning laws, ordinances, state and federal regulations;
(ii) utility and drainage easements which do not
interfere with Buyer's intended use of the property;
(iii) reservation of any minerals or mineral rights to
the State of Minnesota; (iv) rights of tenants disclosed
to Buyer in paragraph 12 of this Agreement; (v) the
matters set forth in the title commitment attached as
Exhibit B.
b. A duly executed affidavit of Seller.
CAR72327 ^
SA305 -42 2
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C. All documents necessary to establish marketable title in
Buyer.
8. Closing Costs Buyer shall pay the fee for recording of
the Seller's limited warranty deed. Seller shall pay all costs for
examination of title, title insurance premium, and recording fees
and charges relating to the filing of instruments required to make
title conform to Exhibit B.
9. Rents, Utilities All rents, utilities, insurance
premiums on transferable policies and other income and expenses
relating to the Property will be prorated between Seller and Buyer
as of the Closing Date.
10. Covenants, Representations and Warranties of Seiler
a. The signatories to this Agreement represent that they are
agents of the Seller and are authorized to execute this
Agreement on the Seller's behalf.
b. Seller warrants that it will take no actions to encumber
title to the Property after the date of this Agreement
and that it will indemnify and hold the Buyer harmless
against any liens or encumbrances established in
violation of this provision.
C. Seller warrants that it has not used the Property for the
storage of hazardous substances or petroleum products
and, as of the date of this Agreement, is not aware of
any facts the existence of which would constitute a
violation of any local, state or federal environmental
law, regulation or review procedure, or which would give
any person a valid claim under the Minnesota
Environmental Rights Act or the federal Comprehensive
Environmental Response, Compensation and Liability Act.
d. Seller warrants no labor or material has been furnished
to the Property during the period of Seller's ownership
for which payment has not been made.
e. Seller warrants that to the best of its knowledge the
Property is subject to month -to -month tenancies in favor
of the persons or entities and at the rental rates listed
on the attached Exhibit A. Seller further warrants that
it has not received any security deposits from any of the
tenants. Seller agrees to notify tenants in writing; ( i )
of the transfer of Seller's interest in the Property to
Buyer; (ii) that no security deposits are being
transferred to Buyer. Seller will provide Buyer with a
copy of the letter and proof of mailing at the Closing.
f. The warranties made in this paragraph shall survive
closing without merger in the deed; provided that any
!.M72327
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action for breach of warranty must be commenced within
two years after the date of closing.
11. Covenants, Representations, and Warranties of Buyer
Buyer is a public body corporate and politic under the laws of the
State of Minnesota and has the power to enter into this Agreement
and to carry out its obligations hereunder. The signatories to
this Agreement represent that they are authorized to execute this
Agreement on Buyer's behalf.
12. No Broker Involved The Seller and Buyer represent and
warrant to each other that there is no broker involved in this
transaction with whom it has negotiated or to whom it has agreed to
pay a broker commission or finder's fee in connection with
negotiations for the sale of the Property arising out of any
alleged agreement, commitment or negotiation by Seller.
13. Possession and Insurance Seller shall deliver
possession of the Property to Buyer on the Closing Date in the same
condition as exists on the date of this Agreement. If there is any
loss or damage to the Property between the date hereof and the date
of closing, for any reason including fire, vandalism, flood,
earthquake or act of the risk of loss shall be on Seller. If
the Property is destroyed or substantially damaged before the
closing date, this Purchase Agreement shall become null and void,
at Buyer's option, and earnest money shall be refunded to Buyer.
Buyer and Seller agree to sign cancellation of Purchase Agreement.
14. Personal Property On the date when possession is
transferred to Buyer, the Seller shall have removed from the
Property any and all persona} property belonging to it which is not
included in this sale. An personal property � P Y whi
ch is not removed
Y P
by the date of transfer of possession shall b e considered prop
of the tenants or otherwise abandoned.
15. Well Disclosure Seller is not aware of any wells
located on the Property, and will include a statement to that
effect in the limited warranty deed to be provided under parag
g p h
7 of this agreement.
16. Remedy for Default If Buyer defaults in any of the
agreements herein, Seller may terminate this Purchase Agreement.
If this Purchase Agreement is not so terminated, Buyer or Seller
i
may seek actual damages for breach, of this Agreement or specific
P 9
� performance,
performance of this Agreement; and, as t
o specific ormance ,
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such within six
action must be co i g
action arises.
17. Time of Essence Time is of the essen in this Purchase
Agreement.
18. Entire Agreement; Amendments This Agreement represents
the complete and final agreement of the parties and supersedes any
prior or contemporaneous oral or written understanding between the
CAR72327
BV305 -42 4
parties, This Agreement may be amended only by a writing signed by
both parties.
19. Binding Effect; Assignment This Purchase Agreement
shall be binding upon the artier hereto and
their respective
sha bi
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heirs, executors, administrators, successors a nd assigns. Each
party agrees to give the other party notice prior to assigning its
interest in the Property or this Agreement.
20. Notice Any notice, demand, request or other
communication which may or shall be given or served to or on Seller
by Buyer or to or on Buyer by Seller shall be deemed to have been
given or served on the date the same is deposited in the United
States mail, registered or certified, postage prepaid and addressed
as follows:
1 If to Seller: Frank Slawson, President
Marquette Bank
Brookdale
5620 Brooklyn Boulevard
Brooklyn Center, MN 55429
(2): If to Buyer: Brad Hoffman
Brooklyn Center EDA
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
IN WITNESS WHEREOF, the undersigned have caused this Agreement
to be executed on the date written above.
SELLER:
MARQUETTE BANK BROOKDALE
By
Its
By
its
BUYER
By
Its President
By
Its Executive Director
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Commissioner introduced the following resolution
a and moved its adoption:
EDA RESOLUTION N
O O.
RESOLUTION ACCEPTING PURCHASE AGREEMENT FOR 7000
BROOKLYN BOULEVARD AND AUTHORIZING ITS PURCHASE
WHEREAS, the Brooklyn Center Economic Development Authority EDA
Y P Y� ) was
directed to negotiate otiate a purchase agreement with Marquette Bank Brookdale• and
g
P g Q ,
WHEREAS h E
t o DA has before i r
o e t a purchase agreement signed by Marquette
Bank Brookdale; and
WHEREAS, it is in the best interest of the EDA to redevelop the area in and
around 69th and Brooklyn Boulevard; and
WHEREAS, the subject property is located within the area the EDA desires to
rehabilitate.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center as follows:
1. The EDA hereby approves the purchase agreement and directs the
President and Executive Director to sign the same.
2. The purchase shall be charged against the EDA special operating fund.
Date Todd Paulson, 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.
Commissioner introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION DIRECTING THE NEGOTIATION OF A PURCHASE
AGREEMENT FOR 7000 BROOKLYN BOULEVARD
WHEREAS, the Marquette Bank Brookdale (the "Owner ") is the Owner of certain
real property in the City of Brooklyn Center located at 7000 Brooklyn Boulevard (the "Subject
Property "); and
WHEREAS, the Subject Property is within the area of Housing Development and
Redevelopment Project No. 1 • and
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WHEREAS, the Owner has offered to sell the Subject Property to the Economic
Development Authority in and for the City of Brooklyn Center (the "Authority ") for the sum of
One Hundred Seventy -one Thousand Dollars ($171,0000); and
WHEREAS, the Authority has determined that the purchase price of the Subject
Property is fair and reasonable and that the acquisition of the Subject Pro for redevelopment
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purposes is necessary or expedient and is in the best interest of the public.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center that the Authority's staff and legal counsel are
authorized and directed to negotiate with the Owner a purchase agreement for the Subject
Property for later consideration by the Authority.
Date Todd Paulson, 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.