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HomeMy WebLinkAbout1992 09-28 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER SEPTEMBER 28, 1992 (following adjournment of City Council meeting) 7 p.m. 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. EDA Minutes - September 14, 1992 - Special Session 4. Discussion Item: a. Minnesota Housing Finance Agency (MHFA) Multi - Family Blighted Property Removal Program 5. Resolution: a. Authorizing Execution of Purchase Agreement for the Acquisition of 5206 Drew Avenue North in Brooklyn Center and Authorizing Payment for Acquisition Costs 6. Adjournment CITY OF BROOKLYN CENTER Comcil Meeting Date September 28, 1992 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - SEPTEMBER 14, 1992 - SPECIAL SESSION DEPT. APPROVAL: Brad Hoffman, EDA Coordinator MANAGER'S REVIEW/RECONMENDATION: No comments to supplement this report Comments below /attached SUN MARY EXPLANATION: (supplemental sheets attached ) • RECOMMENDED CITY COUNCIL ACTION i MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY QV THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION SEPTEMBER 14, 1992 CIT HALL GALL TQ QRDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 10:55 p.m. ROLL CALT� President Todd Paulson, Commissioners Dave Rosene, Philip Cohen, Celia Scott, and Jerry Pedlar. Also present were City Manager Gerald Splinter, City Attorney Charlie LeFevere, Director of Planning and Inspection Ron Warren, EDA Coordinator Brad Hoffman, Assistant EDA Coordinator Tom Bublitz, and Council Secretary Nancy Berg. APPROVAL OF MINUTES AUGUST 24 1992 - 5PFCIAI;. SESSION There was a motion by Commissioner Pedlar and seconded by Commissioner Rosene to approve the minutes of the August 24, 1992, EDA meeting. The motion passed unanimously. AUQjjST 24, 1992 - SPECIAL SESSION There was a motion by Co mmissione r Scott and seconded by Commissioner Rus;unc to approve the minutes of the August 24, 1992, HRA meeting. The motion passed unanimously, RESOLUT ONS 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 Located at 6601 Bryant Avenue North in Brooklyn Center. 9/14/92 - 1 - r RESOLUTION NO. 9 -34 Membcr Colia Scott introduced 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 6601 BRYANT AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by member Jerry Pedlar, and the motion passed unanimously. ADJ URNMENT There was a motion by Commissioner Pedlar and seconded by Commissioner Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 11:40 a.m. Todd Paulson, President Recorded and transcribed by: Nancy Berg Northern Counties Secretarial Services 9/14/92 -2- CITY OF BROOKLYN CENTER Conned Meeting Date September 2 88 , 1992 Agenda Item Number 7 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: MINNESOTA HOUSING FINANCE AGENCY (MHFA) MULTI- FAMILY BLIGHTED PROPERTY REMOVAL PROGRAM DEPT. APPROVAL: To Bubhtz, Assistant ED 7— X Coordinator s MANAGER'S REVIEW/RECOAMENDATION: A " 4 s No comments to supplement this r Comments below/attached e pp t t s eport SUN MARY EXPLANATION: (supplemental sheets attached No) The 1992 legislature appropriated $750,000.00 to the Minnesota Housing Finance Agency (MHFA) for the acquisition and /or removal of blighted multi - family residential buildings. MHFA has approached this program as a demonstration program for removal of blighted multi - family properties and has developed a competitive grant program for awarding the funds. According to MHFA, two (2) demonstration projects will be funded in the state. Essentially, the grant funds can be used to acquire and demolish blighted multi - family properties. The definition of blighted property is left up to the City to define. Initially, staff had considered recommending the EDA submit a grant application for the MHFA demonstration program as part of the acquisition and demolition of the Willow Lane Apartments. Since we will not be proceeding with a project in this area, staff is recommending the application be targeted to the four (4) boarded -up fourplexes in the 6700 block of Humboldt Avenue North. Some of the major elements of the MHFA demonstration program include: • Funds must be expended by December 31, 1994; • Funds must be spent in a designated neighborhood which is defined as an area of the neighborhood designated by the City by an appropriate resolution for neighborhood preservation; • A description of the neighborhood in terms of condition of rental housing and the activities contemplated to preserve housing must be included in the application; • Identification and description of the target property; • Comparative cost analysis of demolition versus rehabilitation of the target property; • Time table for accomplishing the City's housing program in the designated neighborhood. Mr. Gene Ranieri with Publicorp is assisting City staff in preparation of the application. Mr. Ranieri will be at the meeting to review the grant program with the EDA board. Information on the grant program is being presented as information only at this time, and the grant proposal is not completed as of this date. The deadline for submission of the grant request is October 26, 1992. RECOMMENDEDATION No action is being requested at the present time. This item is for information only. C1ITY OF BROOKLYN CENTER Council Meeting Date September 28, 1992 Agenda Item Number s GZ/ REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR THE ACQUISITION OF 5206 DREW AVENUE NORTH IN BROOKLYN CENTER AND AUTHORIZING PAYMENT FOR ACQUISITION COSTS «N «NNNN «NM «N « « «N« «NNN« NNNN «NN «« NNNN«««« MNNNNNNNN« NNNNNNNNNNNNNNNNNNNNNNNNNN «NN «« «NNN« DEPT. APPROVAL: Assistant EDA Coordinator Signatur - title NNNN « «NNNNNNNNNNNNNNNNN« NNNN« N« NNNNM «NMNNMNNNN « «NNNNNNNNNNNNNN N N NNNNNNNNNNNNNNNN MANAGERS REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached «NNNNNN «N« NNN «« NNNN «NNNN «« NNN « «N «NNNNNN «NN NNNNNNNN «« «NNN «« «NNNN « «NNNNNNNNNNNNNNNNNNNN SUMMARY EXPLANATION: (supplemental sheets attached Yes ) EDA Resolution 92 -23 authorized EDA staff to make an offer of $31,000.00 for the single - family property at 5206 Drew Avenue North. This acquisition would be undertaken as part of the EDA's Scattered Site Acquisition Program. The owner of the roe Mr. p p rty, Dan Holien, has agreed to the offer of $31,000.00, contingent upon being allowed 9 P 9 to stay in the property until October 9, 1992. 1 have met with Mr. Holien and negotiated the purchase agreement included with this request form. If the EDA approves the attached purchase agreement, 1 will set up a closing on the property and proceed with demolition of the property. This acquisition is being undertaken as a voluntary acquisition and Mr. Holien will be required to formally waive any relocation benefits. Staff is recommending Community Development Block Grant ICDBG) funds be used in the acquisition. RECOMMENDATION Staff recommends approval of resolution and requests a motion to proceed with obtaining quotes for demolition of the property. �V V Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR THE ACQUISITION OF 5206 DREW AVENUE NORTH IN BROOKLYN CENTER AND AUTHORIZING PAYMENT FOR ACQUISITION COSTS WHEREAS, on June 22, 1992, the Brooklyn Center Economic Development Authority approved Resolution 92 -23, 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; and WHEREAS, Resolution 92 -23 established the fair market value of the real property located at 5206 Drew Avenue North and authorized the Economic Development Authority staff to make a written offer of $31,000.00 to the owner of the real property at 5206 Drew Avenue North for the acquisition of the property; and WHEREAS, the owner of the real property described in Resolution 92 -23 has accepted the Economic Development Authority's offer of just compensation and has agreed to execute a purchase agreement for the acquisition of the real property; and NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority that: 1. The terms of the purchase agreement for acquisition of 5206 Drew Avenue North in Brooklyn Center are hereby approved and the President and Executive Director of the Brooklyn Center Economic Development Authority are hereby authorized to execute the purchase agreement on behalf of the Brooklyn Center Economic Development Authority. 2. The Brooklyn Center Economic Development Authority hereby authorizes payment of $31,000.00 for the acquisition of 5206 Drew Avenue North in Brooklyn Center to be paid to the owner on the day of closing for the property at 5206 Drew Avenue North as per the terms of the purchase agreement. Date Todd Paulson, President EDA Resolution No. 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. PURCHA SE A GREEMENT This Purchase Agreement made this day of , 1992, by and between Danny LeRoy Holien, Owner(s) and Seller(s) (collectively the "Seller ") , and the Economic Development Authority in and for the City of Brooklyn Center, with offices at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota, Buyer. WITNESSETH: WHEREAS, Seller is the owner of that certain real estate described in paragraph 1 below (the "Subject Property "); and WHEREAS, Buyer desires to acquire the Subject Property to own in fee simple for redevelopment purposes; and WHEREAS, Seller agrees to sell the Subject Property to Buyer; NOW, THEREFORE, the parties hereto hereby agree as follows: 1. Earnest Money That in consideration of the mutual agreements herein contained and the sum of One Dollar and No Cents ($1.00) ( "Earnest Money ") paid by the Buyer to the Seller, the receipt of which is hereby acknowledged, the Seller hereby grants unto the buyer the exclusive right to purchase the following tract or parcel of land (Subject Property) situated in the County of Hennepin, State of Minnesota, to -wit: The south 32 feet of Lot 10 in the North 1/2 of Lot 11, Block 1, Linden Shores on Twin Lakes Addition to Hennepin County. PID 10- 118 -21 -12 -0010 2. Purchase Price The purchase price for the Subject Property shall be Thirty -One Thousand and No /100 Dollars ($31,000.00) payable by check on the Closing Date. The Earnest Money shall be applied as a partial pre - payment thereof. The Buyer, in its discretion and in partial payment of the purchase price, may assume or take title subject to any existing indebtedness encumbering the Subject Property, in which case the cash to be paid at the time of closing shall be reduced by the then remaining indebtedness. 3. Marketability of Title The Seller shall, within ten (10) days of the date of this Purchase Agreement, deliver to the Buyer all unrecorded instruments relating to interests in the Subject Property, and abstract of title or a registered property abstract continued to the date of delivery and including proper searches for judgments, bankruptcies, state and federal tax liens, real estate taxes and special assessments, showing marketable title to the Subject Property in the Seller. After delivery of said abstract or registered 1 0 property abstract, the Buyer shall have twenty (20) days for the examination thereof, and to deliver written objections, if any, e th Seller. Seller r shall ermit no additional tonal encumbrances to be made upon the Subject Property between the date of this Purchase Agreement and t Closing he Cl in Date. In the g g event that title to the Subject Property is found by the Buyer to be unmarketable and cannot be made marketable by the Seller by the Closing Date, then, at the option of the Buyer, this Agreement shall be null and void, and the Earnest Money shall be refunded forthwith to the Buyer. 4. Closing Date The closing of the sale of Subject Property shall take place sixty (60) days after the date of this Purchase Agreement, or at such earlier or later date as may be mutually agreed upon by the Seller and Buyer. 5. Deed Delivered at Closing Seller agrees to give good and marketable title to Subject Property in fee - simple, together with all improvements, hereditaments and appurtenances thereunto belonging and all of the right, title and interest of the Seller in and to any streets or alleys adjoining or abutting thereon, and to convey the same by warranty deed joined in by all individuals known collectively as Seller herein (and by spouse, if any), and in form acceptable to counsel for Buyer. 6. Seller's Representations and Adjustments The Seller agrees to free the Subject Property from all taxes, assessments, leases, liens, and encumbrances and charges of any kind to the date of closing, except that it is agreed that all real estate taxes due and payable in the year of the Closing Date and all rents, utilities, insurance premiums on transferable policies and other income and expenses relating to the Subject Property, shall be pro -rated to Seller and Buyer as of the Closing Date. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. This warranty shall survive the delivery of the deed at closing. 7. Costs to Clear Title and Closing osts If the Sell r fails to clear title to the extent herein required, or to submit evidence of his ability to do so, and such failure continues for ninety (90) days after the notice of defects, the Buyer may clear title to the extent required and charge the cost of clearing to the Seller. All expenses of examination of title, recording the Seller's warranty deed, transfer taxes, documentary stamps, evidence of title, boundary survey and legal description of the Subject Property, and similar expense incidental to conveying the Subject Property to the Buyer shall be paid by the Buyer. 2 8. Exceptions to Marketable Title Seller shall convey marketable title to the Subject Property to the Buyer subject only to the following exceptions: a. Building and zoning laws, ordinances, State and Federal regulations. b. Reservation of any minerals or mineral rights to the State of Minnesota. C. Utility and drainage easements. 9. 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 finders' fees in connection with negotiations for the sale of the Subject Property arising out of any alleged agreement, commitment or negotiation by Seller. 10. Possessions and Insurance Seller shall continue in possession of the Subject Property until the Closing Date, and shall maintain it in its present condition. On the Closing Date possession shall be transferred to the Buyer. Risk or loss from casualty or any liability incurred by or as a result of the use or contact with the Subject Property shall be the Seller's until delivery of possession to the Buyer as herein provided. 11. Personal Property On Closing Date, or vacation date, whichever is later, the Seller shall have removed from the Subject Property any and all personal property belonging to him. The Seller shall hold the Buyer harmless for the disposal of personal property left in or at the Subject Property by the Seller after the date of closing or date of vacation if later. 12. Entire Agreement; Amendments This Purchase Agreement constitutes the entire agreement between the parties and no other agreement prior to this Purchase Agreement or contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment hereto shall not be effective unless it shall be set forth in writing and executed by both parties hereto or their respective successors or assigns. 13. Binding Effect; Assignment This Purchase Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign his rights and interest hereunder without notice to Seller except to the State of Minnesota, and Seller shall give notice to Buyer of assignment of its interests in the manner prescribed in paragraph 14 hereof. 3 14. 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: a. If to Seller: Danny LeRoy Holien Route 1, Box 145 Cannon Falls, MN 55009 -9707 b. If to Buyer: Economic Development Authority in and for the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 With Copy To: Corrine Heine Holmes and Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55420 15. Default by Buyer If title is marketable or is made marketable as provided herein and Buyer defaults in any of the agreements herein, Seller may cancel this agreement as provided by statute. 16. Default b Seller If title is marketable or is m de marketable and Seller defaults in any of the agreements herein, Buyer may seek damages from Seller, including costs and reasonable attorney's fees or seek specific performance within six (6) months after such right of action arises. 4 J IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year first printed above. Seller Seller STATE OF MINNESOTA) ) SS. COUNTY OF HENNEPIN) On this the day of 1992, before me, a Notary Public, personally appeared and , known to me to be the persons whose names are subscribed to the within instrument and who executed the same for the purpose therein contained as their free and voluntary acts. Notary Public Buyer, Todd Paulson Its President Buyer, Gerald G. Splinter Its Executive Director STATE OF MINNESOTA) SS. COUNTY OF HENNEPIN) On this the day of , 1992, before me, a Notary Public, personally appeared and , known to me to be the persons whose names are subscribed to the within instrument and who executed the same for the purpose therein contained as their free and voluntary act. Notary Public 5 i