HomeMy WebLinkAbout1992 09-14 EDAP Regular Session EDA AGENDA
CITY OF BROOKLYN CENTER
SEPTEMBER 14, 1992
(following adjournment of City Council meeting)
7 p.m.
1. Call to Order
2. Roll Call
3. Approval of Minutes:
a. EDA Minutes - August 24, 1992 - Special Session
b. HRA Minutes - August 24, 1992 - Special Session
4. Resolution:
a. 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
5. Adjournment
CITY OF BROOKLYN CENTER council Meeting Date A„¢nst 2a, 1992
Agenda Item Number
REQUEST FOR COUNCIL CONSIDERATION
ITEM DESCRIPTION:
EDA MINUTES - AUGUST 24, 1992 - SPECIAL SESSION
HRA MINUTES - AUGUST 24, 1992 - SPECIAL SESSION
DEPT. APPROVAL•
Brad Hoffman, EDA Coordinator
MANAGER'S REVIEW/RECOMMENDATION: - �~ - . �•
,.
No comments to supplement this report Comments below /attached
SUMMARY EXPLANATION: (supplemental sheets attached )
RECOMMENDED CITY COUNCIL ACTION
MINUTES OF PR F THE ECONOMIC
THE PROCEEDINGS O
DEVELOPMENT AUTHORITY QJr 1'Hk CITY OF BROOKLYN
CENTER IN THE COUNTY OF HENNEPIN AND THE STATE
OF MINNESOTA
SPECIAL SESSION
AUGUST 24, 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 12:16 a.m.
ROLL CALL
President Todd Paulson, Commissioners Dave Rosene, and Philip Cohen, Celia Scott, and
Jcrry Pedlar. Also present were City Manager Gerald Splinter, City Attorney Dave
Kennedy, Director of Planning and Inspection Ron Warren, and Council Secretary Nancy
Berg,
APPROVAL OF MINUTES
AUGUST 10 1992 - SPECIAL. SESSION
There was a motion by Commissioner Scott and sccouded by Commissioner Rosene to
approve the minutes of the August 10, 1992, EDA meeting, The motion passed
unanimously.
AUGUST 17, 1992 - WORK SESSION
There was a motion by Commissioner Scott and seconded by Coy missioncr Rosene to
approve the minutes of the August 17, 1992, EDA meeting. The motion passed
unanimously,
DISCUSSION ITEM
The City Manager introduced 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, and he explained the appraisal report as this
property was not yet complete and requested this item be removed from the EDA agenda.
RESOLUTIONS
The City Manager introduced a Resolution Requesting the City of Brooklyn Center to Levy
Takes for the Benefit of the Brooklyn Center Economic Development Authority for the
Year 1993.
8/24/92 - 1 -
RES LUTION NO. 92 -32
Member Cclia Scott introduced the following resolution and moved its adoption:
RESOLUTION REQUESTING THE CITY OF BROOKLYN CENTER TO LEVY
TAXES FOR THE BENEFIT OF THE BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY FOR THE YEAR 1993
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Rosene, and the motion passed. May Paulson voted against the resolution.
The City Manager introduced a Resolution Approving the Proposed Brooklyn Center
Economic Development Authority Budgct for the Year 1993 Pursuant to MSA Chapter
469.107, Subdivision 1.
RESOLUTION NO, 92 -33
Commissioner Rosene introduced the following resolution and moved its adoption:
RESOLUTION APPROVING THE PROPOSED BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1993 PURSUANT TO
MSA CHAPTER 469.107, SUBDIVISION 1
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Pedler, and the motion passed unanimously.
ADJOURNMENT
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 12:20 a.m.
Todd Paulson, President
Recorded and transcribed by:
Nancy Berg
Northern Counties Secretarial Services
8/24/92 - 2 -
MIN(.JTES 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
SPECIAL SESSION
AUGUST 24, 1992
CITY HALL
CALL TQ ORDER
The Brooklyn Center Housing and Redevelopment Authority met in special session and was
called to order by President Todd Paulson at 12;20 a.m.
ROLL CALL
President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, Dave Rosene, and Philip
Cohen. Also present were HRA Director Gerald Splinter, City Attorney Dave Kennedy,
HRA Coordinator Brad Hoffman, Director of Planning and Inspection Ron Warren,
Finance Director Paul Holmlund, and Council Secretary Nancy Berg,
RESOLUTIONS
RESOLUTION NO. 92 -01
Commissioner Pedlar introduced the following resolution and moved its adoption:
RESOLUTION ESTABLISHING THE PROPOSED TAX LEVY FOR THE BROOKLYN
CENTER HOUSING AND REDEVELOPMENT AUTHORITY FOR THE YEAR 1993
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Rosene, and the motion passed. President Paulson voted against the
resolution.
RESOLUTION NO, 92 -02
Cominissioner Colien introduced the following resolution and moved its adoption:
RESOLUTION APPROVING THE PROPOSED BROOKLYN CENTER HOUSING
AND REDEVELOPMENT AUTHORITY BUDUEI'FORTHEYEAR 1993 PURSUANT
TO MSA CHAPTER 469.033, SUBDIVISION 6 AND MSA CHAPTER 469.107,
SUBDIVISION 1
The motion for the adoption of the foregoing resolution was duly seconded by
8/ - -
1
Commissioner Pedlar, and the motion passed. President Paulson voted against the
resolution,
ADJOURNMENT
There was a motion by Commissioner Pedlar and seconded by President Paulson to adjourn
the meeting. The motion passed unanimously. The Brooklyn Center Housing and
Redevelopment Authority adjourned at 12:21 a.m,
Todd Paulson, President
Recorded and transcribed by:
Nancy Derg
Northern Counties Secretarial Service
$/24/92 - 2 -
CITY OF BROOKLYN CENTER Council Meeting Date Se 14, 1992
Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION
ITEM DESCRIPTION:
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
DEPT. APPROVAL:
Tom Bublitz, Assistant EDA Coor inator
MANAGER'S REVIEW/RECOMMENDATION:
No comments to supplement this report . Comments below /attached
SUMMARY EXPLANATION: (supplemental sheets attached Yes
At the July 27, 1992 EDA meeting, the EDA Board authorized the staff to proceed with the
acquisition of the single family property at 6601 Bryant Avenue North. A copy of the July 27, 1992
report on the condition of the property is included with this request form.
The EDA board has received a copy of the appraisal report and review appraisal on the single
family property located at 6601 Bryant Avenue North. Also included with this request form is a
memorandum from the City Assessor regarding the estimated market rental rate of the property
at 6601 Bryant Avenue North. Since the estimated rental rate for this property exceeds the Section
8 fair market rents, the EDA is exempt from the one - for -one housing replacement rule which
requires that any affordable units demolished must be replaced on a one - for -one basis within a
three year period from the demolition.
CDBG funding is recommended for the acquisition and demolition of this property. Since the
owner is deceased, there are no relocation expenses.
The appraisal and review appraisal establish a value of $43,000.00 for the property. The resolution
accompanying this request form would provide for an offer of $43,000.00 to the owner of the
property.
An estimated budget for acquisition and demolition of the property is shown by the following:
Budget Items Estimated Cost
Acquisition Cost $ 43,000.00
Appraisal Fee 475.00
is Demolition 6,000.00
Legal Costs 1,500.00
Closing Costs
(including title transfer
and prorated taxes) 1,500.00
Administration 100.00
Incidental Expenses
(certified mail, messenger
service, office supplies) 150.00
TOTAL: $ 53,625.00
RECOMMENDATION:
Staff recommends approval of the resolution which would authorize staff to proceed with making
an offer of just compensation and the negotiations for the acquisition of the property.
•
�
1 /
Commissioner introduced the following
resolution and moved its adoption:
EDA RESOLUTION NO.
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
WHEREAS, the Brooklyn Center Economic Development
Authority has received the following items relative to the
appraisal of the real property located at 6601 Bryant Avenue
North:
A. Appraisal Report dated August 23, 1992;
B. Review Appraisal dated September 11, 1992; and
WHEREAS, the Economic Development Authority in and for
the City of Brooklyn Center (EDA) is authorized, pursuant to
Minnesota Statutes Section 469.012, Subd. 7, within its area of
operation, and without the adoption of an urban renewal plan, to
acquire real property and to demolish or remove the buildings and
improvements thereon; and
WHEREAS, the property located at 6601 Bryant Avenue
North in the City of Brooklyn Center ( "the property ") is for sale
and the realtor listing the property has requested that the EDA
consider the purchase of the property; and
WHEREAS, the building located on the property is
substandard and obsolescent and that such condition and
obsolescence is detrimental to the public health, safety and
welfare of the community; and
WHEREAS, the EDA has received an appraisal and a review
appraisal which establishes that the market value for the property
is $43,000.00.
NOW, THEREFORE, BE IT RESOLVED by the Economic
Development Authority in and for the City of Brooklyn Center as
follows:
1. The EDA hereby finds and determines that the
property is substandard and obsolete within the
meaning of Minnesota Statutes Section 469.012.
2. The appraisal documents described in paragraph 1 of
this resolution are hereby accepted and the fair
market value of $43,000.00, established by the
appraisal documents, is hereby accepted.
3. The fair market value of $43,000.00 for the
EDA Resolution No.
property, established by the appraisal documents,
is hereby accepted and established as just
compensation for the real property located at 6601
Bryant Avenue North.
4. The Executive Director is authorized to make a
written offer of $43,000.00 to the owner of the
real property at 6601 Bryant Avenue North for the
acquisition of the property, contingent on release
of the property from the Department of Housing and
Urban Development (HUD) environmental conditions
and to take such further action as may be necessary
to acquire the property.
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.
i
CITY OF BROOKLYN CENTER Council Meeting Date _July_ 2o, 199
Agenda Item Number
REQUEST FOR COUNCIL CONSIDERATION
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ITEM DESCRIPTION: r
ACQUISITION OF 6601 BRYANT AVENUE NORTH
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DEPT. APPROVAL:
Assistant EDA Coordinator
Signature - title
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MANAGER'S REVIEW /RECOMMENDATION:
No comments to supplement this report Comments below /attached
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SUMMARY EXPLANATION: (supplemental sheets attached NO
Staff was recently made aware of a single - family property at 6601 Bryant Avenue North which may be a candidate
for acquisition and demolition under the EDA's Scattered Site Redevelopment Program.
was contacted by Jon Perkins, a City Housing Commission member and realtor regarding the availability of the
property. He informed me the owner is deceased and the property is in an estate. The executor of the estate is
located in Pennsylvania.
On July 10, 1992, 1 viewed the house along with Mr. Perkins and Clay Larson, the City's Building Official.
In the opinion of myself and the City Building Official, the house is in a substandard condition and should be
considered for acquisition and demolition.
The following is a brief summary of information on the single - family property at 6601 Bryant Avenue North.
1. The interior of the house is in relatively marginal condition. The ceilings show signs of deterioration, the
enclosed porch area shows signs of leaking and the door shows signs of water damage.
2. The home is a slab on grade with a small crawl space and an uncapped well.
3. The furnace is a substandard unit built into a closet.
4. The general appearance of the interior of the house was poor with older, outdated appliances, cupboards,
etc.
5. The best feature of the house was the aluminum siding, however, the home needs a new roof and soffit and
fascia repair or replacement.
6. The house was built in 1947 and is relatively small at 796 square feet with one bedroom and a detached
garage with a wooden floor.
The positive features of the property are the large lot which is 132' x 133' (A acres), and its location across from
Firehouse Park. Additionally, the other houses in the neighborhood are in substantially better condition than this
house, so removing it would definitely improve the neighborhood.
In addition to the information in this memorandum, I will be showing several slides at Monday's meeting.
r
RECOMMENDATION
Staff recommends a Motion by the EDA to authorize staff to proceed with the acquisition of the property, including
obtaining an appraisal of the property.
V.
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MEMORANDUM
August 20, 1992
TO: Tom Bublitz
Assistant EDA Coordinator
FROM: Mark Parish
City Assessor
RE: Estimated Market Rental Rate
6601 Bryant Avenue North
You recently requested an estimate of the fair market rental rate for this property. Because of
the property's design with two rooms in series, I have analyzed the property both as a one
bedroom and as a two bedroom home. Based on review of market levels and rental
comparables, the following analyses are provided:
One Bedroom Analysis
A one bedroom home with an additional area for use as a den or other living space and a one
car garage would be estimated to rent in the range of $400 - $550 per month. This rent would
typically include sewer and water, but all other utilities including gas, electric, cable television,
and telephone would be paid by the tenant. While the location and features of this home would
be good as a one bedroom, its condition would hinder its marketability. Therefore, I would
expect its rental rate to be in the upper one -half of the range, estimated in this situation at $500
per month. Utility costs above and beyond this rental would be $30.00 for gas heating, $10.00
for gas cooking and water heating, $22.00 for electric and 17.00 for trash collection for a total
of $79.00. Therefore, my estimate of fair market rent including utilities would be $500.00
base rental, $79.00 for utilities, or $579.00 total.
Two Bedroom Analysis
If the subject property were to be considered a two bedroom home with a one car garage
available for rental, the range indicated would be $500.00 - $650.00 per month. While location
of the property remains good, its design in which the second bedroom is currently accessible
only through the other bedroom area would hinder its marketability. Also, the current condition
would have an adverse affect on marketability. Based on these factors, it is my estimate that
the subject property would rent in the lower half of the range, estimated in this instance at
$550.00 per month. Again, this rental rate would include sewer and water; however, other
utilities would be above and beyond this rental rate. Utilities for two bedroom single family
dwellings are estimated at $41.00 for gas /heating, $12.00 for gas cooking and water heating,
$26.00 for electric and $17.00 for trash removal for a total of $96.00.
Tom Bublitz
6601 Bryant Avenue North
August 20, 1992
Page 2
Therefore, my estimate of fair market rent as a two bedroom home would be $550.00 in
rent plus $96.00 in utilities or $646.00 total.
I hope this approach both as a one bedroom and two bedroom is beneficial and acceptable given
the design of this home. If you have any questions or comments on this matter, please contact
me at 569 -3310.
CITY 6301 SHINGLE CREEK PARKWAY
OF BROOKLYN CENTER, MINNESOTA 55430
BROOKLYN TELEPHONE: 569 -3300
CENTER FAX: 569 -3494
EMERGENCY - POLICE - FIRE
911
MEMORANDUM
TO: Tom Bublitz, Assistant EDA Coordinator
FROM: Mark Parish, City Assessor
ti
DATE: September 11, 1992
RE: Appraisal Review
6601 Bryant Avenue North
Having reviewed the appraisal report of this property completed by J. Scott Renne and Marri
P. Kunik, I am in agreement with their findings and conclusion of value of the subject property.
My review included the appraisal and a verification of the comparable sales upon which their
analysis is based. I believe the report to be well documented and sound and the conclusions
reasonable and justified.
Therefore, I agree with their analysis and findings and believe the market value of the subject
property as of August 6, 1992, to be Forty -Three Thousand Dollars ($43,000).
If you have any additional questions or comments on this matter, please feel free to contact me
at 569 -3355.
c
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