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HomeMy WebLinkAbout1991 04-22 EDAP Regular Session I EDA AGENDA CITY OF BROOKLYN CENTER APRIL 22, 1991 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. March 18, 1991 - Special Session b. March 25, 1991 - Special Session 4. Resolutions: a. Authorizing the Purchase of a Piano b. Authorizing Execution of Purchase Agreement for the Acquisition of 5538 Colfax Avenue North, Brooklyn Center, Minnesota, and Authorizing Payment of Acquisition Cost 5. Adjournment MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION MARCH 18, 1991 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 7:00 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were EDA Director Gerald Splinter, EDA Coordinator Brad Hoffman, and Council Secretary Ann Odden. RESOLUTION APPROVING A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 KNOWN AS THE BROOKWOOD TAX INCREMENT FINANCING DISTRICT The EDA Director briefly reviewed this item, noting the amendment to the Tax Increment Financing (TIF) Plan was for the purpose of removing a cap inadvertently placed on District No. 1. RESOLUTION NO. 91 -03 Commissioner Jerry Pedlar introduced the following resolution and moved its adoption: RESOLUTION APPROVING A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1, KNOWN AS THE BROOKWOOD TAX INCREMENT FINANCING DISTRICT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Celia Scott, and the motion passed unanimously. 3/18/91 - 1 - ADJOURNMENT There was a motion by Commissioner Cohen and seconded by Commissioner Pedlar to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 7:04 p.m. Todd Paulson, President Recorded and transcribed by: Ann J. Odden Northern Counties Secretarial Service 3/18/91 - 2 - I MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION MARCH 25, 1991 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 9:05 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen. Also present were EDA Director Gerald Splinter, Director of Public Works Sy Knapp, Director of Planning and Inspection Ron Warren, City Attorney Charlie LeFevere, Public Works Coordinator Diane Spector, Personnel Coordinator Geralyn Barone, EDA Coordinator Brad Hoffman, and Council Secretary Ann Odden. APPROVAL OF MINUTES MARCH 11, 1991 - SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Pedlar to approve the minutes of the March 11, 1991 EDA meeting. Vote: Four ayes. The motion passed. President Paulson abstained. RESOLUTION NO. 91 -04 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF THIRD -PARTY AGREEMENT FOR YEAR XVI URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Jerry Pedlar, and the motion passed unanimously. RESOLUTION NO. 91 -05 Commissioner Jerry Pedlar introduced the following resolution and moved its adoption: 3/25/91 - 1 - RESOLUTION ESTABLISHING OFFER OF JUST COMPENSATIO FOR R THE PURCHASE OF REAL PROPERTY LOCATED AT 5538 COLFAX AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Dave Rosene, and the motion passed unanimously. The EDA Director and the EDA Coordinator reviewed item 4c in regard to amending the 1991 EDA budget. Staff recommended approval of this item. Merrill Bush, president of the advertising firm of Bush and Partners, presented information to the Council on 1991 advertising and promotion goals for the Earle Brown Heritage Center, which was the purpose of the proposed budget amendments. The EDA Director noted the Commission would begin receiving monthly statements in regard to the operation of the Heritage Center. In regard to Commissioner Pedlar's question, Mr. Bush indicated it would be difficult to track success of the advertising campaign as increased public awareness would be difficult to measure. Commissioner Cohen commented the campaign was geared toward making the Heritage Center profitable, and it would seem to be advisable to accept the professional advice and review the plan in two years to determine whether the strategy was working as planned. The EDA Director noted it could take three years before the results 0 of the media campaign could be measured, due to the fact that some conventions are booked far in advance. RESOLUTION NO. 91 -06 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1991 TO PROVIDE FOR AN AMENDED 1991 BUDGET FOR THE EARLE BROWN HERITAGE CENTER INCLUDING CERTAIN CAPITAL OUTLAY ITEMS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Philip Cohen and the motion passed unanimously. The EDA Director reviewed item 4d in regard to approval of a contract with Omega Foods for the Heritage Center. The EDA Coordinator indicated the contract was shorter in term than the previous food service contract and contained provisions for the City to end the contract under certain conditions. 3/25/91 - 2 - RESOLUTION NO. 91 -07 Commissioner Jerry Pedlar introduced the following resolution and moved its adoption: RESOLUTION APPROVING A FOOD SERVICE MANAGEMENT CONTRACT WITH OMEGA FOODS FOR THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Celia Scott and the motion passed unanimously. RESOLUTION NO. 91 -08 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Dave Rosene and the motion passed unanimously. RESOLUTION NO. 91 -09 Commissioner Philip Cohen introduced the following resolution and moved its adoption: RESOLUTION FOR FACSIMILE SIGNATURES The motion for the adoption of the foregoing resolution was duly seconded b P g g Y Y Commissioner Celia Scott and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Rosene and seconded by Commissioner Pedlar to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:11 p.m. Todd Paulson, President Recorded and transcribed by: Ann J. Odden Northern Counties Secretarial Service 3/25/91 - 3 - y� _ Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE PURCHASE OF A PIANO WHEREAS, acquisition of a piano was approved by the Economic Development Authority for use at the Earle Brown Heritage Center; and WHEREAS, the Earle Brown Heritage Center has been renting • piano from Schmitt Music in Brooklyn Center for those events when • piano is required; and WHEREAS, Schmitt Music has agreed to refund a portion of the rental fee if a piano is purchased from them; and WHEREAS, the Earle Brown Heritage Center has been renting a Kawai KG -2 grand piano and has found it to be an excellent instrument for the space requirements; and WHEREAS, Schmitt Music is the only authorized dealer of Kawai Pianos. NOW, THEREFORE, BE IT RESOLVED, BY THE ECONOMIC DEVELOPMENT AUTHORITY of the City of Brooklyn Center that the purchase of a Kawai KG -2 grand piano from Schmitt Music, in the amount of $10,665, is hereby approved. BE IT FURTHER RESOLVED the purchase of a Colson dolly and a dust cover from Schmitt Music, in the amount of $520, is also approved. 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. CITY OF BROOKLYN CENTER Council Meeting Date 4- 22 -91 // Agenda Item NumberTU REQUEST FOR COUNCIL CONSIDERATION • %rrrrrrrr %r% rrr% rrrrr% rrrrrr %r %rrrrrrrr %rr %rrrrrrrrrr% rrr % %rrrrrrrr %% %rrr %% %rrrrr %rrr ITEM DESCRIPTION: Resolution Authorizing Execution of Purchase Agreement for the Acquisition of 5538 Colfax Avenue North, Brooklyn Center, Authorizing Payment for Acquisition Costs DEPT. APPROVAL: i Assistant EDA Coordinator Signature -title MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments belowlattached • SUMMARY EXPLANATION: (supplemental sheets attached Yes ) The Resolution approves the terms of the Purchase Agreement for the acquisition of the single - family property at 5538 Colfax Avenue North. The Brooklyn Center Economic Development Authority, through Resolution 91 -05, previously approved the offer of $45,000 for the property. The owner has provided acceptance of the EDA's offer in writing. Because the owner has been unable to locate the Abstract of Title to the property, an amendment to the Purchase Agreement has been included which stipulates that the seller provide title insurance for the buyer (EDA). The title insurance will allow the EDA to close on the property and obtain title. Additionally, the amendment requires the seller to place 51,000 in an escrow account to cover the cost of preparing a new Abstract of Title for the property. Staff is recommending approval of the Resolution to move forward with the acquisition of the property. Community Development Block Grant Funds will be used for the acquisition of this property. ZI A Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR THE ACQUISITION OF 5538 COLFAX AVENUE NORTH, BROOKLYN CENTER, AUTHORIZING PAYMENT FOR ACQUISITION COSTS WHEREAS, on March 25, 1991, the Brooklyn Center Economic Development Authority approved Resolution 91 -05, Resolution Establishing Offer of Just Compensation for the Purchase of Real Property Located at 5538 Colfax Avenue North in Brooklyn Center, and WHEREAS, Resolution 91 -05 established the fair market value of the real property located at 5538 Colfax Avenue North and authorized the Economic Development Authority staff to make a written offer of $45,000 to the owner of the real property at 5538 Colfax Avenue North for the acquisition of the property, and WHEREAS, the owner of the real property described in Resolution 91 -05 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 located at 5538 Colfax Avenue North. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority that: 1. The terms of the purchase agreement for acquisition of 5538 Colfax 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 $45,000.00 for the acquisition of 5538 Colfax Avenue North in Brooklyn Center to be paid to the owner on the day of closing for the property at 5538 Colfax Avenue North as per the terms of the purchase agreement. Date Todd Paulson President Resolution Number 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. PURCHASE AGREEMENT This Purchase Agreement made this day of , 1991, by and between Robert Lindblom Owner(s) and Seller(s) (collectively the "Seller ") , and the City of 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: N 1/4 of W 1/2 of Lot 45, Garcelon's Addition PID 01- 118 -21 -31 -0059 2. Purchase Price The purchase price for the Subject Property shall be Forty -Five Thousand and No /100 Dollars ($45,000.00) 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 property abstract, the Buyer shall have twenty (20) days for the examination thereof, and to deliver written objections, if 1 any, to the Seller. Seller shall permit no additional encumbrances to be made upon the Subject Property between the date of this Purchase Agreement and the Closing Date. In the 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 Closin Seller agrees o d and 1 r t give good a g g g 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 Costs If the Seller 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 Y g 7 p Y Buyer Y shall be paid by the Buyer. 8. Exceptions to Marketable Title Seller shall convey marketable title to the Subject Property to the Buyer subject only to the following exceptions: 2 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 P Property until the Closing Date and Subject Y g , shall maintain it in its present condition. On the Closing Date P e ossession shall be transferred to the Buyer. Risk or loss from casualty r an liability incurred b or as a result Y Y Y Y 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. Relocation Costs The Buyer shall pay relocation costs, if any, which will be determined in accordance with the Uniform Relocation and Real Property Acquisition Act of 1970, as amended in 1987, and the Department of Housing and Urban Development's Community Development Block Grant Regulations, and paid separately by the Buyer, no part of which is reflected in the purchase price contained in paragraph 2, above. 13. 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. 14. 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, 3 • 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 15 hereof. 15. 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: Robert Lindblom 7001 78th Avenue North Brooklyn Park, MN 55445 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 16. 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. 17. Default by Seller If title is marketable or is made 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 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 19 , 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 Buyer STATE OF MINNESOTA) SS. COUNTY OF HENNEPIN) On this the day of 19 , 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 Is 5 AMENDMENT TO PURCHASE AGREEMENT DATE: The undersigned parties to a Purchase Agreement, dated , 1991, pertaining to purchase and sale of the property at 5538 Colfax Avenue North, Brooklyn Center, Minnesota, 55430, hereby mutually agree to amend said Purchase Agreement as follows: A. Seller shall pay for and provide title insurance (owner's policy) to the buyer for the subject property at the time of closing. B. Seller shall provide $1,000 to be placed in an escrow account for the purpose of preparing an Abstract of Title to the subject property for the buyer. Any dollar amount remaining in the escrow account after preparation of the Abstract of Title for the buyer shall be returned to the seller. 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 1991, 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 Buyer STATE OF MINNESOTA) SS. COUNTY OF HENNEPIN) On this the day of 1991, 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