HomeMy WebLinkAbout1988 05-09 EDAP Regular Session EDA AGENDA
CITY OF BROOKLYN CENTER
MAY 9, 1988
(following adjournment of City Council meeting)
1. Call to Order
2. Roll Call
3. Approval of Minutes - March 28, 1988
4. Discussion Item:
a. Acquisition of Property at 65th and Brooklyn Boulevard
5. Adjournment
MINUTES OF THE PROCEEDINGS OF THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN
CENTER IN THE COUNTY OF HENNEPIN AND STATE
OF MINNESOTA
SPECIAL SESSION
MARCH 28, 1988
CONSTITUTION HALL
CALL TO ORDER
The Brooklyn Center Economic Development Authority met in special session and
was called to order by President Dean Nyquist at 7:15 p.m.
ROLL CALL
President Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and
Rich Theis. Also present were EDA Director Gerald Splinter, Director of Public
Works Sy Knapp, Finance Director Paul Holmlund, Director of Planning and
Inspection Ron Warren, City Attorney Charlie LeFevere, and Administrative Aid
Patti Page.
APPROVAL OF MINUTES - MARCH 14 1988
There was a motion by Commissioner Scott and seconded by Commissioner Hawes to
approve the minutes of the March 14, 1988, Economic Development Authority
meeting as submitted. The motion passed unanimously.
RESOLUTION
The EDA Director presented a Resolution Approving One (1) Brooklyn Center
Economic Development Authority Grant. Commissioner Hawes stated he has some
concerns regarding these grants. He stated he feels homes should be up to code
when a house is put for sale. He stated he does not believe a grant should be
approved six months after a new owner moves in. He added he does not want to
see the program abused. Commissioner Lhotka reminded Commissioner Hawes there
are income guidelines which must be met in order to receive such a grant. He
added he believes some cities have what is called a point of sale ordinance in
which homes are inspected by the City before they can be sold. The EDA Director
stated this type of ordinance will be discussed at the upcoming planning
meeting.
Commissioner Theis stated he feels these grants are a real benefit to the City
of Brooklyn Center as well as the residents. He noted in some cases these homes
would never be upgraded because the present owners could not afford it. He
added that he does not believe Brooklyn Center or the homeowner is getting hurt
by this grant and that the homeowner is not actually benefiting much from this
grant because he must commit to living in the home for five years or else pay
the City back.
RESOLUTION NO. 88 -08
Member Rich Theis introduced the following resolution and moved its adoption:
RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY
GRANT
S
3 -28 -88 _1_
The motion for the adoption of the foregoing resolution was duly seconded by
member Celia Scott, and the motion passed unanimously.
ADJOURNMENT
There was a motion by Commissioner Lhotka and seconded by Commissioner Theis to
adjourn the meeting. The motion passed unanimously. The Brooklyn Center
Economic Development Authority adjourned at 7:23 p.m.
President
i
I
3 -28 -88 -2-
MEMORANDUM
TO: Gerald G. Splinter, City Manager
FROM: Brad Hoffman, EDA Coordinator°+�
I✓
DATE: May 5, 1988
SUBJECT: EDA Brooklyn Boulevard Acquisition Policy
The City recently received an inquiry from a homeowner along the
west side of Brooklyn Boulevard north of 65th Avenue North as to
the City's interest in acquiring properties to assist the
development or redevelopment of that block. You will recall that
the block in question includes the vacant property proposed for
development by the Church on the Move.
As the Economic Development Authority, you may wish to consider a
Policy of acquiring selected properties when they become
available. There are two (2) significant hindrances to the
development of the area. First, the large vacant parcel has
significant soil problems. In consideration of any policy for
that parcel you will need to consider the need for density on the
site to offset the cost of soil correction. I would assume that
any developer will want to maximize the development. Second,
there is extremely poor access to the site. As the parcel sits
today, there is a right -in, right -out access only. However, at
the access point it is still extremely close to the exit ramp of
I -694. The public works director is of the opinion that access
to and from that parcel should be achieved on 65th Avenue North
and that no left turn be permitted along Brooklyn Boulevard.
The City /EDA has several options available to it. The EDA could
elect to sit tight and see what development comes along and
decide at that time if it has an interest in encouraging the
development. On the positive side, you have no expenditures and
the properties remain on the tax roll. Further, most of those
homes are rental property providing shelter for families who
would not be displaced by EDA action. Lastly, monies that would
be used to acquire the property would remain invested. On the
down side, it is possible for a developer to buy out homes along
Brooklyn Boulevard and improve their access point. Such a
development would probably be multifamily (apartments) at a
density of 16 per acre. Indications from the neighborhood favor
other types of development.
The City /EDA could acquire just the two (2) northern most homes
on 65th Avenue North and Brooklyn Boulevard. The advantage is
primarily financial. By acquiring these two (2) parcels, you
would effectively preclude any development of the parcel with an
access point on Brooklyn Boulevard except its present one. Such
an action would presume a willingness on the part of the EDA to
work with the owner to find a suitable development for the site.
On the down side, the owner could acquire a parcel(s) on 65th
Avenue North and seek City approval for an access point off
Brooklyn Boulevard.
Memo to Gerald Splinter
Page 2
May 5, 1988
A third and more aggressive policy would have the EDA acquire all
of the parcels along Brooklyn Boulevard in which we have an
interest. It would give us control over the development and
"clean" that block up. It would allow a better access off 65th
Avenue North. Finally, it would allow the City /EDA to set the
timetable for its development. There is something to be said for
having a few large parcels of undeveloped land for future
development. We can hardly anticipate all of the problems and
needs a future council will be faced with. Such a program can be
expensive and as noted previously, you are taking parcels off the
tax roles and possibly displacing families.
At the present time, two (2) parcels are available and a third
verbally available to the EDA. The two (2) homes currently
listed are asking $69,900 and $65,900. The third home is not
currently listed and I have not discussed price; however, I would
estimate the cost of the home to be comparable.
Any program that displaces residents will mostly generate a
relocation payment. For rental, relocation should not exceed
$5,000 and I believe that is high for the type of relocation
involved. For purposes of discussion Monday, I would propose
that the EDA acquire properties as noted on the attached map as
they come onto the market. Further, condemnation would be used
only at that time when a development agreement is signed and any
outstanding properties are left to be acquired per the terms of
the agreement. Also, any properties acquired currently being
rented would continue as rental properties to avoid the
relocation aspects of the project. I will be available to
discuss this Monday evening.
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