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HomeMy WebLinkAbout1991 06-10 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER JUNE 10, 1991 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. May 13, 1991 - Special Session 4. Resolutions: a. Authorizing Sale of Certain Property Pursuant to Minnesota Statutes, Section 469.012, Subdivision 7, and Section 469.029 -This resolution would provide for the advertisement for sale of the property located at 5538 Colfax Avenue North. The single- family lot is currently owned by the EDA, and it is proposed to redevelop the site to single - family use. b. Authorizing the Acquisition of Certain Real Property Within the City of Brooklyn Center -An appraisal has been done on this property, and this resolution would authorize the staff to negotiate for acquisition of the property. C. Declaring Noble Nursery, Inc. in Default of Obligations under Landscaping Contract 5. Discussion Item: a. Proposal to Move City -owned House from 69th Avenue Right - of -Way Acquisition to EDA -owned Property at 6730 Perry Avenue North in Brooklyn Center 6. Adjournment 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 MAY 13, 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 10:58 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, Assistant EDA Coordinator Tom Bublitz, City Engineer Mark Maloney, Public Works Coordinator Diane Spector, and Council Secretary Ann Odden. APPROVAL OF MINUTES APRIL 22, 1991 There was a motion by Commissioner Scott and seconded by Commissioner Cohen to approve the minutes of the April 22, 1991, EDA meeting as printed. The motion passed unanimously. RESOLUTIONS RESOLUTION NO. 91 -12 Commissioner Philip Cohen introduced the following EDA resolution and moved its adoption: RESOLUTION ACCEPTING QUOTATIONS AND AWARDING CONTRACT FOR DEMOLITION OF 5538 COLFAX AVENUE NORTH The motion for the adoption of the foregoing EDA resolution was duly seconded by Commissioner Dave Rosene, and the motion passed unanimously. 5/13/91 - 1 - RESOLUTION DECLARING CERTAIN LANDS TO BE EXCESS PROPERTY AND AUTHORIZING SALE OF SAME The EDA Director requested this item be removed from the agenda to allow staff more time to process recent information related to the project. There was a motion by Commissioner Rosene and seconded by Commissioner Scott to table this item indefinitely. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 11:03 p.m. President Recorded and transcribed by: Ann J. Odden Northern Counties Secretarial Service 5/13/91 _ 2 - CITY OF BROOKLYN CENTER Council Meeting Date 6/10/911 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Authorizing Sale of Certain Property Pursuant to Minnesota Statutes, Section 469.012, Subdivision 7, and Section 469.029 DEPT. APPROVAL- Tom Bu blitz, Assista t EDA Coor orator MANAGER'S REVIEW/RECOAMENDATION: No comments to supplement this report Comments below /attached SLIVEVIARY EXPLANATION: (supplemental sheets attached Yes This Resolution would provide for the advertisement for sale of the property at 5538 Colfax Avenue • North, which was acquired by the EDA as part of its Community Development Block Grant Scattered Site Redevelopment Program. The intent of the program is to redevelop the property as a single - family home site. Staff reviewed the option of moving a house from the 69th Avenue right -of -way acquisition to the Colfax property but is recommending against this option since no house from the 69th Avenue project was found to be suitable for the Colfax site. As part of the process for selling the property, any purchase offer and purchase agreement terms would be presented to the EDA Board for its review and approval prior to execution of the purchase agreement. RECOMMENDED CITY COUNCIL ACTION Staff is recommending approval of this Resolution which would authorize an advertisement for written offers on the property. i Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF CERTAIN PROPERTY PURSUANT TO MINNESOTA STATUTES, SECTION 469.012, SUBDIVISION 7, AND SECTION 469.029 WHEREAS, the EDA is authorized pursuant to Minnesota Statues, Section 469.012, Subdivision 7, within its area of operation, and without the adoption of an urban renewal plan, to acquire real property, demolish the buildings and improvements thereon and sell such property in accordance with Minnesota Statutes, Section 469.029, as long as the buildings on such real property are substandard; and WHEREAS, the EDA has determined that the building located on the Property described below was dilapidated and obsolescent and the clearance thereof was in the best interest of the public health and welfare of the City of Brooklyn Center; and WHEREAS, on April 30, 1991, the EDA purchased and acquired that tract and parcel of land legally described as North 1/2 of the North 1/2 of the West 1/2 of Lot 45, Garcelon's Addition to Minneapolis, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota (5538 Colfax Avenue North)(the "Property "); and WHEREAS, the Property was purchased and the building thereon was demolished by the EDA using Community Development Block Grant Funds under the Slum and Blight Clearance Provisions, which are part of the objectives of the Urban Hennepin County Community Development Block Grant Program. 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 it is in the best interest of the EDA and the public health, safety and welfare of the community that the EDA sell the Property in accordance with Minnesota Statutes, Sections 469.012, Subdivision 7, and 469.029. 2. The Director is authorized and directed to seek offers to purchase the Property at a price and on such terms as shall be subject to the further review and acceptance by the EDA. EDA Resolution No. 3. The Director, in discharging such directive, shall cause to be published in the official newspaper of the City and /or such other publication the Director deems appropriate the notice contained in the attached Exhibit A and such other notices as the Director deems appropriate. 4. The Director is authorized to negotiate with any prospective purchaser as to the purchase price and terms of sale provided, however, that no offer may be accepted unless approved by the Board of Commissioners of the EDA. 5. The Director shall report to the Board of Commissioners of the EDA concerning any recommendations which he may have regarding the sale of 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. EXHIBIT A NOTICE THE ECONOMIC DEVELOPMENT AUTHORITY (EDA), IN AND FOR THE CITY OF BROOKLYN CENTER, WILL ACCEPT WRITTEN OFFERS (PURCHASE AGREEMENTS) FOR A SINGLE - FAMILY LOT LOCATED AT 5538 COLFAX AVENUE NORTH. THE LEGAL DESCRIPTION IS AS FOLLOWS: The North 1/2 of the North 1/2 of the West 1/2 of Lot 45, Garcelon's Addition to Minneapolis, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota. The EDA reserves the right to accept or reject any offer. The minimum offer to be considered is $19,500. The lot is zoned single - family R1. Preference will be given to offers proposing low and moderate income housing. Submit offers to the Brooklyn Center Economic Development Authority, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. Offers and counteroffers will be considered until 2 p.m. on Friday, the 12th day of July, 1991. For further information, contact Tom Bublitz at 569 -3433. CITY OF BROOKLYN CENTER Council Meeting Date 6/10/91 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Authorizing the Acquisition of Certain Real Property Within the City of Brooklyn Center DEPT. APPROVAL: a�o� Tom ublitz, Assista t EDA Cod'Fdnator MANAGER'S REVIEW/RECOMMENDATION: Aej _L No comments to supplement this report Comments below attached SUI MARY EXPLANATION: (supplemental sheets attached Yes The EDA is requesting to approve a Resolution Authorizing the Acquisition of Certain Real Property Within the City of Brooklyn Center. • The EDA has received a copy of the appraisal report and review appraisal on the single - family property located at 5449 Emerson Avenue North. I was contacted by phone on April 12, 1991, by the owner of the property who inquired if the City was interested in buying his property. I suggested the owner write a letter stating his request to purchase. his property. A copy of the letter is included with this request. The acquisition is being approached as a voluntary sale by the owner; and as such, he would be required to formally waive any consideration of relocation benefits. Funding for the project would be from EDA funds. No federal funds are proposed for this project. An estimated budget for the project is shown by the following: Items Estimated Cost Acquisition Cost of Property $12,000 to $20,000 Appraisal Fee 475 Demolition 4,000 Legal 1,500 Costs Relative to Transfer of Title 600 Administration 1,200 • Incidental Expenses (Certified Mail, Messenger Service, Office Supplies, etc.) 150 TOTAL ESTIMATED COST FOR ACQUISITION $19,925 TO $27,925 RECOMMENDED CITY COUNCIL ACTION Staff recommends approval of the Resolution which would authorize staff to proceed with the negotiations for the acquisition. • 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 WHEREAS, the Economic Development Authority for the City of Brooklyn Center (EDA) is authorized pursuant to Minnesota Statutes Section 469.012, Subdivision 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 owner of the property located at 5449 Emerson Avenue North in the City of Brooklyn Center (the "Property ") has requested that the EDA consider the purchase of the Property; and WHEREAS, the building located on the Property is dilapidated and obsolescent and that such dilapidation 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 establish that the market value for the Property is in a range between $12,000 and $20,000. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority for the City of Brooklyn Center as follows: 1. The EDA hereby finds and determines that the Property is dilapidated and obsolete within the meaning of Minnesota Statutes, Section 469.012. 2. The Executive Director of the EDA is hereby authorized to negotiate and enter into a purchase agreement for the acquisition of the Property at a price within the range of market value established by the review appraisal referenced herein, but at a price within such range which the Executive Director determines is appropriate. The Executive Director is authorized to take such further actions 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. City of Brooklyn Center April 25,.1991 Please contact me, I would like to sell my home to the city of Brooklyn Center. It is located at 5449 Emerson Avenue iroit:h. I Sincerely, Roger L. Olson Phone 566 - 9050 I MEMORANDUM TO: Brad Hoffman EDA Coordinator FROM: Mark Parish City Assessor DATE: June 5, 1991 SUBJ: Appraisal Review 5449 Emerson Avenue North ---------------------------------------- ---------------------------------------- I have reviewed the appraisal completed by J. Scott Renne of the property in which he concluded the value as of April 27, 1991 was $14,000.00. While I can agree with his conclusion, I personally believe the value could lie anywhere within the range of $12,000 to $20,000. As Mr. Renne discusses, the home is very near the end of its economic life. The home is in need of repair, but it is questionable as to whether the property could be brought up to code compliance without exceeding the resale price. The property may be more marketable and have a higher value if the improvements were razed and a buildable lot remained. However, it is osp sible that a buyer might be found who would take the approach of sweat equity and $10,000 for labor and materials would result in a $30,000 property. In conclusion, Mr. Renne inspected the property, I did not. His appraisal approach and market data are correct. I concur with his conclusion, however, given the fact that a highest and best use could either conclude to repair or to demolish for the lot, I believe the range of value of $12,000 to $20,000 should be kept in mind. CITY OF BROOKLYN CENTER Council Meeting Date 6-I0-9I Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION DECLARING NOBLE NURSERY, INC. IN DEFAULT OF OBLIGATIONS UNDER LANDSCAPING CONTRACT DEPT. APPROVAL- ,U G. ad Hoffman, EDA Co r inator MANAGER'S REVIEW/RECONMMNDATION: No comments to supplement this report Comments below /attached SUNDLA RY EXPLANATION: (supplemental sheets attached ) • There will be a resolution before the EDA Monday evening declaring Noble Nursery, Inc. to be in default on their landscape contract at the farm. I have had several meetings with the owner and each time he promised to complete the job by a given date. Our last discussion was late last fall when he promised to have everything in and completed in early May. Since we have heard nothing from Noble Nursery, Inc., I asked Westwood Professional Services, Inc. to do a site review for contract compliance. Attached is a letter from Westwood Professional Services, Inc. We have also contacted Noble Nursery's bond company and have presented them with our list of deficiencies. Since contacting the bond company, Noble Nursery, Inc. has started the work, but still have a long way to go before they are done. My experience with this company suggests that we have to keep the pressure on them or they will never finish the job. It should also be noted that Noble Nursery, Inc. still has outstanding debts to their subcontractors on this job. I have had numerous calls from the subcontractors. Noble Nursery, Inc. has told them that the reason they have not been paid is because the EDA is still retaining $9,708 of their contract. Noble's total contract was $365,566.25 of which they have been paid $355,858.25. There is no reason to not have paid their subcontractors since their work is completed and no retainage is being held against their work. Between their bond and our retainage, the EDA has adequate funds to complete the project. RECOMMENDED CITY COUNCIL ACTION Pass a resolution declaring Noble Nursery, Inc. in default of obligations under landscaping contract. '411estwood Professional Services, Inc. �* Brad Hoffman 14180 Trunk Hwy. 5 Eden Prairie, MN 55344 City of Brooklyn Center 612 - 937 -5150 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 FAX 612- 937 -5822 RE: Earle Brown Farm - Site work evaluation Dear Brad: After reviewing the site work at Earle Brown Farm, I have prepared a quantitative and qualitative evaluation of existing conditions. This evaluation needs to be qualified as follows: -The evaluation is based solely on the original plans and any field changes which may have been made tnat we weren't involved in, consequently are not reflected in our observations. -It is difficult to be sure in early May whether plants are unhealthy or just slow to leaf out. This will be more obvious within one month. -The health and quality of a plant, especially herbacious material, is dependent upon the care and maintenance given since the time of installation. Therefore the quality and even quantity of original material can be difficult to assess after one to two growing seasons. - The following is a list of plant materials where problems were noted: 1. French Hybrid Lilac - 4 missing, 11 dead. 2. Minnesota Snowflake Mockorange - 7 borderline (may come back). 3. Winged Euonymous - 4 missing, 2 dead, most have barely begun to leaf out. 4. Vanhoutte Spirea - 1 missing, 5 dead, 1 borderline. 5. Shrub Rose - 1 missing. 6. Japanese Barberry - Wrong variety was planted. Green leaf variety was specified and red leaf variety was planted. 7. Pee Gee Hydrangea - 1 missing. 8. Norway Spruce - 7 missing, 2 extra in unplanned locations. 9. Scotch Pine - 4 missing (apparently cut down). 10. Pin Oak - 17 missing, 2 extra in unplanned locations. 11. Regal Elm - 1 dead. 12. Crabapple - 2 missing, 7 dead. 13. Holleyhock - 446 missing. 14. Lily of Valley - 402 missing. 15. Engleman Ivy - 3 missing. 16. Iris - 626 missing. 17. Chrysanthemum - Some were planted near large fountain, but none made it through the winter. No evidence of any others planted. 18. Tulip - 530 missing (all). 19. Lily - 241 missing (all). Wesn oo Professional Servicas. Inc. is an equal opponunny employer. EBF - Site Work Evaluation ' Page 2 20. Peony - 80 missing (all). 21. Black -eyed Susan - 123 missing. 22. Reed Grass - This one was very confusing. A grass was planted in most of the planned Reed Grass locations. However, it doesn't look like Reed Grass (until it flowers, I can't tell for sure) and 41 extra plants were planted. 6 plants were missing in some other locations. 23. Ribbon Grass - 108 missing. 24. Marolen Grass - 86 missing (all). 25. Fountain Grass - 216 missing (all). 26. Blue Fescue - 811 missing (all). Other miscellaneous issues noted on site: 1. Sod is missing on west side of Stable. 2. The paving generally looked good. Some steel edger is sticking up at north end of entry turn - around. 3. The planting soil looked light colored (lacking organic quality). 4. Planting beds (as defined by edger) are not shaped as planned on north side of Barn D and on both sides of small fountain. This generally summarizes the problems and issues I observed on the site. Please let me know if you need more detail or a subsequent review. .Sincerely, WESTWOOD PROFESSIONAL SERVICES, INC. Anne B. Deuring Landscape Architect Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION DECLARING NOBLE NURSERY, INC. IN DEFAULT OF OBLIGATIONS UNDER LANDSCAPING CONTRACT WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (hereinafter the "EDA ") entered into a written agreement dated May 30, 1989, entitled Earle Brown Farm Restoration, Brooklyn Center, Minnesota, bid package number 39 -Site Amenities (hereinafter the "Agreement ") with Noble Nursery, Inc. (hereinafter the "Contractor ") for landscaping at the EDA's Earle Brown Heritage Center; and WHEREAS, the Contractor provided performance and payment bonds for the performance of work under the Agreement from Amwest Surety Insurance Company of Woodlake Hills, California (hereinafter referred to as the "Surety "); and WHEREAS, the EDA has determined on the basis of information provided by its Executive Director that the Contractor is in default of its obligations under the Agreement and has not satisfactorily performed or completed its work under the Agreement; and WHEREAS, by letter dated May 17, 1991, legal counsel for the EDA gave formal notice of default to the Surety. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that: 1. The Contractor is hereby declared to be in default of its obligations under the Agreement. 2. The determination by the Executive Director and notification by legal counsel for the EDA to the Surety giving written notice of default is hereby confirmed and ratified in all respects. 3. The Executive Director and legal counsel are hereby authorized and directed to take any and all action necessary to enforce the obligations of the Surety under the performance and payment bonds provided to assure performance of the Agreement. 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. MEMORANDUM TO: Todd Paulson, President EDA Board Members FROM: Tom Bublitz, Assistant EDA Coordinator DATE: June 7, 1991 SUBJECT: Consideration of Moving City -Owned House onto EDA -Owned Property at 6730 Perry Avenue North At the May 13, 1991, EDA meeting, staff recommended to the EDA Board that there may be a possibility of moving two of the homes from the 69th Avenue right -of -way acquisition to lots owned by the EDA. By moving the existing homes onto the EDA -owned lot, the EDA could reduce the overall net cost of clearing and redeveloping these lots, as opposed to selling these lots for redevelopment. Using the project at 6730 Perry Avenue North as an example, the estimated cost for each alternative is shown by the following: Cost of Acquisition and Cost of Acquisition and Redevelopment of Redevelopment of 6730 6730 Perry Avenue North Perry Avenue North By By Selling Lot Moving Existing Home Onto Site Acquisition and Related Acquisition and Relocation Costs for Relocation Costs for 6730 Perry $ 72,900 6730 Perry $ 72,900 Less Estimated Sale Plus Cost of Moving Price of Lot 17,000 House and Preparing it for Sale 47,500 Net Cost of Acquisition Total $120,400 and Redevelopment 55 900 Less Estimated Sale Price of House 75,000 Net Cost of Acquisition and Redevelopment $ 45,400 A summary of the proposal to .move the city -owned house from the 69th Avenue right -of -way acquisition to 6730 Perry Avenue North follows: 1. Current Status The Brooklyn Center EDA owns the property at 6730 Perry Avenue North. The home was acquired and demolished using CDBG funds. Total cost of. the project, including acquisition and relocation, was $72,900.00, paid 100 percent from CDBG funds. EDA Board Members June 7, 1991 Page 2 2. The current proposal would involve the moving of an existing home to be placed on the lot at 6730 Perry Avenue North. The home to be moved onto the lot is owned by the City of Brooklyn Center and has been acquired by the City as part of the 69th Avenue right -of -way acquisition. 3. A preliminary budget for the project is shown by the following: A. Purchase of house and garage from City of Brooklyn Center by Brooklyn Center EDA $ 10,000.00 Note: This is the estimated value of the home if it would be bid for sale. B. Cost of moving house and garage to 6730 Perry Avenue North $ 7,500.00 C. Cost of preparing site for placement of house, including foundation /basement $ 10,000.00 D. Costs for rehabilitation of house in preparation for sale, including plumbing, electrical, site restoration and landscaping $ 15,000.00 E. Administrative, legal, miscellaneous project costs, and contingency $ 5,000.00 ESTIMATED PROJECT COST $ 47,500.00 4. Total Acquisition and Relocation $ 72,900.00 Estimated Costs to Move and Place House on Lot 47,500.00 TOTAL COST $120,400.00 Note: CDBG funds will be used to fund the entire project. 5. Total Cost $120,400.00 Less Estimated Sale Price 75,000.00 Total Net Cost of Project � 45,400.00 6. All proceeds from the sale of the home by the EDA will be paid to Hennepin County and returned to Brooklyn Center's Scattered Site Redevelopment Account. The house also must be sold to a low /moderate income person /family with 80 percent of metro area median income as the maximum allowable income. EDA Board Members June 7, 1991 Page 3 The house proposed for relocation to 6730 Perry Avenue North is a rambler which will fit well with the present design of the other homes along Perry Avenue. The house is still occupied, so staff has not been able to do an inspection of the property; and as a result, the budget presented in this memorandum is only preliminary. After inspecting the home proposed for relocation to the 5538 Colfax Avenue North site, it did not appear to be suitable for relocation to the Colfax property, primarily due to the design and condition of the house.