Loading...
HomeMy WebLinkAbout1991 08-12 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER AUGUST 12, 1991 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. July 22, 1991 - Special Session 4. Resolutions: a. Authorizing President and Executive Director to Execute Third -Party Agreement for Year XVII Urban Hennepin County Community Development Block Grant Program -This is an agreement between the Brooklyn Center City Council and Brooklyn Center EDA for implementation of the Year XVII Scattered Site and Housing Rehab Programs. b. Authorizing Execution of Purchase for the Acquisition of 5449 Emerson Avenue North, Brooklyn Center, and Authorizing Payment for Acquisition Costs C. Creating Funds within the Economic Development Authority 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 JULY 22, 1991 CITY HALL CALL TO ORDER The Brooklyn o yn Center Economic Development Authority et in special session and w ty P as called to order by President Todd Paulson at 11:35 P .m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar , Dave Rosene , and Philip Cohen. Also present were EDA Director Gerald Splinter, r Coo P � EDA Coordinator Brad Hoffman Assistant EDA Coordinator Tom Bublitz City Attorney Charlie ty y LeFevere, Director of Public Works Sy Knapp, Director of Planning and Inspection Ron Warren, Finance Director Paul Holmlund, and Council Secretar Ann Odden. OF MIN APPROVAL TES U ,TUNE 24, 1991 There was a motion by Commissioner Scott and seconded by Commissioner Rosene to approve the minutes of the June 24, 1991, EDA meeting. The motion passed unanimously. DISCUSSION ITEMS MINNESOTA HOUSING FINANCE AGENCY PURCHASE PLUS PROGRAM The EDA Director and the Assistant EDA Coordinator reviewed this item. They explained the City's role would be one of marketing and promotion to assist the homeowner. The Commission concurred with the idea. There was a motion by Commissioner Scott and seconded by Commissioner Pedlar approving the concept and authorizing participation in the program. The motion passed unanimously. 7/22/91 - 1 - J PROPOSAL FOR HOME REDESIGN AND REMODELING DEMONSTRATION PROGRAM AND HOMEOWNERS' ASSOCIATION PROGRAM The Assistant EDA Coordinator reviewed this item, noting the EDA staff had been working with Bill Schatzlein to develop two proposals for housing - related programs in the City of Brooklyn Center. Mr. Schatzlein was in the process of creating a nonprofit corporation to address housing needs in the Twin Cities' suburban are The a two P P ro 'ects p ro p osed were a home redesign and remodeling programs and a program to develop a model for a homeowner's association for single family home owners. The Assistant EDA Coordinator indicated funds for the projects would be solicited through Mr. Schatzlein's non - profit corporation, and requested authorization to rP � pursue the projects 9 p p oJects with Mr. Schatzlein. Commissioner Pedlar felt it was a good idea, but he expressed some concerns because there was no example of a successful model of the program. Commissioner Cohen advised staff to keep informed of what was happening with the project at all times. He indicated endorsing the concept meant a specific plan would still need to be worked out. There was a motion by Commissioner Cohen and seconded by Commissioner Pedlar endorsing concept approval of the program, supporting Mr. Schatzlein's efforts to seek funding for the proposals through his non - profit corporation and to direct staff to work with Mr. Schatzlein on development of the projects. The motion passed unanimously. REDEVELOPMENT OF EDA -OWNED LOT AT 6730 PERRY AVENUE NORTH In regard to agenda items 4c and 5a, the Assistant EDA Coordinator reviewed a handout regarding information from the City's Maxfield Study on housing, which addresses policy issues relative to single - family redevelopment. He explained he did not find any data in the Maxfield Study to support the placement of existing housing onto single - family lots, and the staff was withdrawing its request to move an existing home onto the EDA -owned lot at 6730 Perry Avenue North. The Assistant EDA Coordinator continued to review the redevelopment recommendations from the Maxfield Study and explained the Maxfield Study supports the redevelopment of single - family lots with new construction. He also reviewed the recent history of redevelopment of single - family lots in the City, reviewing two redevelopment projects using EDA funds and two private redevelopment projects where no EDA funds were used. In all four projects, lots were redeveloped with new, single- family homes. Commissioner Rosene felt the house proposed for 6730 Perry Avenue blended well. Commissioner Cohen commented there was an oversupply of moderate cost housing and that young people tended to prefer to purchase newer homes. 7/22/91 -2- Commissioner Scott concurred with Commissioner Cohen that the City should not get into the real estate business. She stated the cost of a recycled home can be greater than that of a new home. RESOLUTION NO, 91 -16 Commissioner Cohen introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING SALE OF CERTAIN PROPERTY PURSUANT TO MINNESOTA STATUTES, SECTION 469.012, SUBDIVISION 7, AND SECTION 469.029 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Pedlar, and the motion passed unanimously. RENTER'S RIGHTS AND RESPONSIBILITIES FORUM There was a motion by Commissioner Rosene and seconded by Commissioner Pedlar authorizing staff to pursue this matter. The motion passed unanimously. RESOLUTIONS RESOLUTION PROVIDING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER Mr, Richard Herman and Ms. Linda Jensen were present and showed the Commissioners a photograph of a home they had purchased for the purpose of relocating it on the property. Based on the information from the Maxfield Study and the Assistant EDA Coordinator's memorandum, Commissioner Cohen favored rejecting all bids, adopting a policy, and than re- bidding redevelopment projects. He suggested the type of materials to be used and the drawings should be subject to EDA approval. The City Attorney commented the policy would need to be enforced consistently in order to avoid problems. The Commission discussed that the Jensen's purchased the home prematurely, without any assurance that they would be awarded the bid. It was unfortunate, but they felt new construction on the property would be in the best interests of the City. Commissioner Scott indicated it was possible the Jensens might locate another lot for the home, but it was not in the best interest of the City. The City Attorney indicated the City had no legal obligation to allow placement of the home purchased by the Jensens. President Paulson felt the City needed a uniform policy, and they should have been clearer in informing the Jensens regarding the guidelines. Commissioner Rosene encouraged the Commission to consider allowing the home to be placed on the lot. 7/22/91 -3- There was a motion by Commissioner Cohen and seconded by Commissioner Pedlar to 0 reject all offers and re- advertise, requiring applicants to provide sketches of proposed dwellings, and to specify new construction for the property based upon the recommendations of the Maxfield Housing Study and information presented by the Assistant EDA Coordinator. Vote: Four ayes, one nay. The motion passed. Commissioner Rosene voted nay. RESOLUTION NO —.-7 Commissioner Pedlar introduced the following resolution and moved its adoption: RESOLUTION APPROVING TWO (2) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANTS (FILE NOS. H86 AND H87) The motion for the adoption of the foregoing resolution was duly . seconded by Commissioner Celia Scott, and the motion passed unanimously. Commissioner Cohen requested the Director of Public Works check with the Minnesota Department of Transportation (MNDOT) regarding lots on West River Road. 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 12 :58 a.m. Todd Paulson, President Recorded and transcribed by: Ann J. Odden Northern Counties Secretarial Service 7/22/91 CITY OF BROOKLYN CENTER council Meeting Date 8-12 -9I Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Authorizing President and Executive Director to Execute Third -Party Agreement for Year XVII Urban Hennepin County Community Development Block Grant Program DEPT. APPROVAL- Tom Bublitz, Assistant EDA Coordinator l; MANAGER'S REVIEW/RECOAUgENDATION: No comments to supplement this report Comments below /attached ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** SUMEVIARY EXPLANATION: (supplemental sheets attached Yes • This resolution would authorize execution of a third -party agreement between the City Council and EDA for the purpose of establishing the EDA as the provider of program activities for the Year XVII Community Development Block Grant Program. Essentially, by approving the agreement, the City Council is agreeing the EDA will administer the CDBG Program activities. RECOMMENDED CITY COUNCIL ACTION Staff recommends approval of the Resolution. • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE THIRD -PARTY AGREEMENT FOR YEAR XVII URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City Council of the City of Brooklyn Center by Resolution No. 91 -182 has authorized a subrecipient agreement with Hennepin County for the Year XVII Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center serves as the Provider of Community Development Block Grant Program activities in the City of Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority that its President and Executive Director are hereby authorized to execute a third -party agreement between the City of Brooklyn Center and the Economic Development Authority in and for the City of Brooklyn Center for the purpose of implementing Year XVII Community Development Block Grant Program activities. 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 8-12 -91 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** ITEM DESCRIPTION: Resolution Authorizing Execution of Purchase Agreement for the Acquisition of 5449 Emerson Avenue North, Brooklyn Center, and Authorizing Payment for Acquisition Costs DEPT. APPROVAL: Tom Bublitz, Assistant EDA Co rdinator MANAGER'S REVIEW /RECOMI��NDATION. No comments to supplement this report Comments below /attached SUN MARY EXPLANATION: (supplemental sheets attached )es • This Resolution approves the terms and conditions of the purchase agreement for the acquisition of 5449 Emerson Avenue North and establishes the purchase price for the property. EDA Resolution 91 -14 authorized the acquisition of the property and established a market value range of between $12,000 and $20,000. The seller has agreed to a purchase price of $18,500. Included with this memorandum is a copy of the purchase agreement and a letter from the seller regarding acceptance of the EDA's offer. RECOMMENDED CITY COUNCIL ACTION Staff recommends approval of Resolution. • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR THE ACQUISITION OF 5449 EMERSON AVENUE NORTH, BROOKLYN CENTER, AND AUTHORIZING PAYMENT FOR ACQUISITION COSTS WHEREAS, on June 10, 1991, the Brooklyn Center Economic Development Authority approved Resolution No. 91 -14, Resolution Authorizing the Acquisition of Certain Real Property Within the City of Brooklyn Center; and WHEREAS, Resolution No. 91 -14 authorized the Executive Director of the EDA to negotiate a purchase price and purchase agreement for the acquisition of the property at 5449 Emerson Avenue North at a price within the range of $12,000 to $20,000 as established by the review appraisal on the aforementioned property; and WHEREAS, the owner of the real property described in Resolution No. 91 -14 has accepted the Economic Development Authority's offer of $18,500 as compensation for the Property and has agreed to execute a purchase agreement for the acquisition of the real property located at 5449 Emerson 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 5449 Emerson 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 $18,500 for the acquisition of 5449 Emerson Avenue North in Brooklyn Center to be paid to the owner on the day of closing for the Property at 5449 Emerson Avenue North as per the terms of the purchase 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. • PURCHASE AGREEMENT This Purchase Agreement made this day of , 1991, by and between Roger L. Olson 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: Lot 3, Block 2, N and E Perkins Addition to Minneapolis. PID 01 118 -21 -33 -0092 2. Purchase Price The purchase price for the Subject Property shall be Eighteen Thousand, Five Hundred and No /100 Dollars ($18,500.00) 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 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. 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 and of recording the Seller's warranty deed 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: 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. 2 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. 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: 3 a. If to Seller: Roger L. Olson 5449 Emerson Avenue North Brooklyn Center, MN 55430 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 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 , 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, Todd Paulson Its President Buyer, Gerald G. Splinter Its Executive Director 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 55430 5 Council Meeting Rate 8/12/91 Agenda Item Nu ber - (RESDESCI) CITY OF BROOKLYN CENTER REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION CREATING FUNDS WITHIN THE ECONOMIC DEVELOPMENT AUTHORITY ************************************ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** DEPT. APPROVAL: �f � LLt1�;,� I 1 QMA..Pin Charles Hansen, Assistant Fina a Direc r MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below/ attached ************************************ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** SUMMARY EXPLANATION: (supplemental sheets attached ) EXPLANATION: • Since the time of its inception, the Economic Development authority has been accounted for, and reported on, as a single fund. This treatment has become increasingly inadequate, and in the 1990 Annual Financial Report, we began using the three funds listed on the attached resolution. We had delayed asking for recognition of the funds, because for a time it was thought that a fourth fund might also be needed. The fourth fund is no longer under consideration. The funds being recognized are follows: E.D.A. Special Operating Fund. This fund receives the transfer from the H.R.A. Fund for the property tax revenue and transfers from the Community Block Grant Fund. Most of its expenditures are for housing programs. It is essentially the E.D.A.'s "General Fund" in that it accounts for any E.D.A. activity that isn't accounted for elsewhere. Earle Brown Farm Tax Increment District Fund. This fund receives the tax increments collected from the district's captured value. This was the fund which accounted for the construction of the Heritage Center and is still making some capital improvements. In the future, it should primarily be involved in repaying the remaining balance of the temporary improvement note and making the necessary transfers to the debt service funds for the Tax Increment Bonds of 1985 and 1991. Earle Brown Heritage Center Fund. This fund accounts for the ongoing commercial activity of the Heritage Center. It receives the various rents and other revenues and pays the personnel and operating expenses of the Center. STAFF RECOMMENDATION: Passage of the attached resolution creating funds within the Economic Development Authority. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION CREATING FUNDS WITHIN THE ECONOMIC DEVELOPMENT AUTHORITY --------------------------------------------- WHEREAS, Section 7.11 of the City Charter does provide the City Council with the authority to order the creation of such funds as may be needed to properly account for the financial activities of the City; and WHEREAS, there now exists within the Brooklyn Center Economic Development Authority the need to account for more divergent activities which requires that additional funds be kept to properly segregate these activities. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center, Minnesota, that a classification of funds shall be kept as follows: 1. E.D.A. Special Operating Fund. 2. Earle Brown Heritage Center Fund. 3. Earle Brown Farm Tax Increment District Fund. Date 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.