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HomeMy WebLinkAbout1992 07-13 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER JULY 13, 1992 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. June 22, 1992 - Special Session 4. Discussion Item: a. C Barn Development Alternatives 5. Resolutions: a. Approving a Purchase Agreement for the apartment (four - plex) Located at 6637 Humboldt Avenue North 6. Adjournment CITY OF BROOKLYN CENTER council Meeting Date LI I3,_I 992 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - JUNE 22, 1992 - SPECIAL SESSION DEPT. APPROVAL: Brad Hoffman, EDA eoordinator , MANAGER'S REVIEW/RECONMENDATION: No comments to supplement this report Comments below /attached SUNEVIARY EXPLANATION: (supplemental sheets attached ) RECOMMENDED CITY COUNCIL ACTION MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTIHORITY OF THE CITY OF 13KOOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION JUNE 22, 1992 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 11:27 p.m. RO_LL_CAL President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were City Manager Gerald Splinter, Assistant EDA Coordinator Tom Bublitz, City Attorney Charlie LeFevere, Director of Planning and Inspection Ron warren, and Council Secretary Carla Wirth. APPROVAL OF MINUTES JUNE 8. 1992 - SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Roscnc to approve the minutes of the Jane 8, 1992, EDA meeting. The motion passed unanimously. DISCUSSION ITEM -CONSIDERATION OF ACQUISITION OF 5340 COLFAX AVENUE NORTH UNDER THE CITY'S SCATTERED SITE REDEVELOPMENT PRUURAM The Assistant EDA Coordinator explained staff was contacted on May 27, 1992, by a real estate agent with Coldwell Banker who is listing the property at 5340 Colfax Avenue North. The agent representing the owner of the property requested the EDA consider purchasing the property. Staff inspected the property (built in 1910) and found every major system needs replacement. The Assistant EDA Coordinator reviewed items needing, replacement as outlined in the staff report, and recommended the EDA authorize staff to proceed with an appraisal of this property (estimated at $475 including copies). There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to direct staff to proceed with an appraisal of the property at 5340 Colfax Avenue North. The motion passed unanimously. 6/ -1- RESOLUTIQNS The City Manager introduced a Resolution Authorizing the Acquisition of Certain Real Property within the City of Brooklyn Center and Establishing Offer of Just Compensation for Said Property I.ocatcd at 5206 Drew Avenue North in Brooklyn Center. The Assistant EDA Coordinator reviewed the staff report and appraisal information. Since the estimated market rental rate of this property exceeds the Section 8 fair market rents for a one bedroom unit, the EDA is exempt from the one -for -one housing replacement rule which requires that any affordable units demolished must be replaced on a onG -for -one basis within a three -year period. He recommended approval of the proposed resolution which would authorize staff to proceed with negotiations for the acquisition. RESOLUTION NO. 92 -23 Commissioner Stott introduccd the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE CITY OF BROOKLYN CENTER AND ESTABLISHING OFFER OF JUST COMPENSATION FOR SAID PROPERTY LOCATED AT 5206 DREW AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passcd unanimously. The City Manager introduced a Resolution Approving Two (2) Brooklyn Center Economic Development Authority Grants (File No. H -105 [80311 and H -106 (80321). President Paulson noted this item is part of the long -range policy developed by the EDA for grants and acquisitions. RESOLUTION Nb, 92 -24 Commissioner Rosene introduccd the following resolution and moved its adoption: RESOLUTION APPROVING TWO (2) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANTS (FILE NQ. H -105 180311 AND H -106 [80321} The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Pedlar, and the motion passed unanimously. ADJOURN There was a motion by Commissioner Pedlar and seconded by Commksioner Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 11:34 p.m. Todd Paulson, President Recorded and transcribed by: Carla Wirth Northern Counties Secretarial Services 6/22/92 - 2 - CITY OF BROOKLYN CENTER coameil Meeting Date ruts i3, I992 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: C BARN DEVELOPMENT ALTERNATIVES DEPT. APPROVAL: Brad Hoffman, ItIJA Coordinator MANAGER'S REVIEW/RECONMENDATION: �s No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached Presentation will be made at the EDA meeting. RECOMMENDED CITY COUNCIL ACTION MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, EDA Coordinator DATE: July 8, 1992 SUBJECT: C Barn Development On the April 13, 1992 EDA meeting, Resolution 92 -13 was passed establishing a project (8855) to convert the C Barn to a meeting space facility. At the same time, staff was directed to consider a second concept for the conversion and to bring back each of the concepts with costs for further consideration. At Monday's meeting, I will present to the EDA both development concepts. The original concept called for meeting space on two (2) levels. The first level's meeting space is 1134 square feet and accommodates groups up to 76. The second floor (a board room style) is 704 square feet, accommodating 47 people. With architectural drawings of the two (2) concepts, we have also repriced the original concept. • The cost for the original with the design changes and implementing the new handicap accessibility codes is $85,000.00. The second concept calls for eliminating the second floor room and creating a meeting space with a high vaulted ceiling. The square footage to the alternate concept's meeting room is 913 and will accommodate 61 people. The elimination of the ceiling in the alternate concept limits the expansion of the main floor room because of mechanical consideration. If we enlarged the room to the same size as the first concept then we would have to eliminate the stairway which leads to a total revamping of the heating and air conditioning system of the building. The cost estimate for the second concept based upon the architectural drawings is $95,700.00. It is my recommendation that the original concept be selected. Monday evening the EDA should select one of the alternatives and direct staff to obtain quotes for the various subcontractors. As in the past, the EDA would serve as the general contractor with a construction manager. None of the contracts will be in excess of $15,000.00, so there will be written quotes only for the work. I will be available Monday evening. CITY OF BROOKLYN CENTER Council Meeting Date Iuty I3.1M Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION I'T'EM DESCRIPTION: APPROVING A PURCHASE AGREEMENT FOR THE APARTMENT (FOUR -PLEX) LOCATED AT 6637 HUMBOLDT AVENUE NORTH DEPT. APPROVAL: Brad Hoffman, EDA Coordinator MANAGER'S REVIEW/RECOMI%IENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached NOS Monday evening, the EDA will be presented with a purchase agreement for the four- (4) plex located at * 6637 Humboldt. The purchase price is $90,000.00. The property is located to the immediate south of the boarded -up apartments on Humboldt. In the Maxfield Study, it was pointed out and there are more apartment units in this area than are needed based upon the demographics of apartment dwellers. We are all aware of the consequences of a lack of management for such facilities. Historically, this building has been an enforcement problem for the City. I would propose that the EDA acquire this building with EDA funds to get it out of the rental market. The typical buyer for this property is going to be the small investor without the necessary management tools or experience that the community desires apartment owners to have. The property can be demolished and eventually joined with the apartments to the north. The building could also be used for some sort of community service center, or a domestic abuse center. You also could give the building to another agency, such as the Northwest Human Services or the Brooklyn Center School District, assuming either would want it. However, it would be the intent of the purchaser to reduce the overall number of apartment units in the area. A decision as to the use of the site at this time is not necessary. In fact, I would recommend that the EDA take its time about any land use issues involving the units of Humboldt. I will be available Monday to discuss this project. The EDA will be asked to approve the purchase offer and authorize its submittal. I believe our offer will be accepted, however, I would recommend that staff be authorized to negotiate up to 105 percent ($94,056.) of the original offer if the offer is rejected. RECOMMENDATION Motion to Approve a Purchase Agreement for the Apartment (Four -plex) Located at 6637 Humboldt Avenue North. i I (RES6637) Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING A PURCHASE AGREEMENT FOR THE APARTMENT (Four -plex) LOCATED AT 6637 HUMBOLDT AVENUE NORTH ---------------------------------------------------------- WHEREAS, the owner of the property at 6637 Humboldt Avenue North and the E.D.A. have reached a tentative agreement for the sale of the property to the E.D.A.; and WHEREAS, there has developed a surplus of rental housing is the City and this particular property has a history of enforcement problems; and WHEREAS, acquisition of the property will give the EDA the opportunity to convert the building to another use or demolish it and redevelop the land. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, Minnesota, as follows: 1. The Executive Director is authorized to make a written offer of up to $94,056 to the owner of the real property at 6637 Humboldt Avenue North for the acquisition of the property. 2. The Executive Director is authorized to make additional expenditures of up to $3,000 for closing costs. 3. All expenditures will be from the Economic Development 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.