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HomeMy WebLinkAbout1988 12-05 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER December 5, 1988 (following adjournment of the City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. October 24, 1988 - Special Session b. November 21f 1988 - Special Session 4. Resolution: a. Authorizing the Purchase of 5345 Colfax Avenue North 5. Adjournment 3 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 OCTOBER 24, 1988 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 7:23 p.m. ROLL CALL President Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also resent were re EDA Director Gerald Splinter, Director of Public Works Sy Knapp, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney Corrine Heine, City Engineer Bo Spurrier, EDA Coordinator Brad Hoffman, and Administrative Aid Patti Page. HOUSING STUDY The City Manager noted the Council has set aside $30,000 of the Year XIV CDBG monies for a study or studies leading to the development of an overall development policy for the City. He noted the EDA Coordinator has prepared an RFP for the Council's review and approval. Commissioner Scott inquired what the time frame was for these studies. The EDA Coordinator stated that would be addressed by each group, but staff is anticipating having the studies completed by February. He explained staff is looking for the outsiders perspective on the marketing trends to come in Brooklyn Center. Commissioner Theis inquired how many proposals staff expected to receive. The EDA Coordinator stated he has been contacted by three companies, and there are quite a few other companies which will be interested. There was a motion by Commissioner Lhotka and seconded by Commissioner Theis to approve the request for proposal and directing staff to seek proposals for the studies. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Lhotka and seconded by Commissioner Hawes to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 7:35 p.m. President 10/24/88 _1_ 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 NOVEMBER 21, 1988 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 8:16 p.m. ROLL CALL President Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were EDA Director Gerald Splinter, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney Charlie LeFevere, EDA Coordinator Brad Hoffman, and Administrative Aid Patti Page. APPROVAL OF MINUTES - OCTOBER 10 1988 - SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Theis to approve the minutes of the October 10, 1988, Economic Development Authority meeting as submitted. The motion passed. Commissioner Lhotka abstained from the vote. RESOLUTION NO. 88 -22 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR DELIVERY OF ONE (1) ADMINISTRATIVE SEDAN The motion for the adoption of the foregoing resolution was duly seconded by member Gene Lhotka, and the motion passed unanimously. i i COUNCIL REHABILITATION GRANT REPORTS The EDA Director and EDA Coordinator stated they were not exactly sure what the commission was looking for in regards to these grant applications. Commissioner Scott stated she would like to see a copy of the application which is completed by the homeowner. The EDA Director stated a copy of the application would be sent to the commissioners. 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 8:22 p.m. President 11/21/88 -1- y�- MEMORANDUM TO: Gerald G. Splinter, City Mana r FROM: Brad Hoffman EDA Coordinator DATE: December 1, 1988 ly"T SUBJECT: Acquisition of 5345 Colfax The Department of Housing and Urban Development (HUD) has foreclosed on the property at 5345 Colfax. The property was on the public market for $19,600. I have requested that HUD remove the property from public sale to allow the EDA to determine whether or not they would like to acquire the property. The EDA can purchase the property for $17,100. I am currently getting quotes for the demolition of the buildings on the property. It is the staff concern that this property, if allowed to go on public auction, would be "rehabilitated ". There are a number of individuals considering just that. Since this particular house is a blight in the neighborhood, the most appropriate action that should be taken is to demolish the house and build a new house on the lot. The EDA proposal is to acquire the property, demolish the buildings and sell the lot for construction of a new home. It is apparent that HUD offers a quit claim deed. As part of the acquisition, we would take out title insurance on the property. I would estimate that the total cost of this project to the EDA would be approximately $23,000 or less. I would anticipate the EDA could recover all of its costs with this project. There are no specials owing on the site and taxes are current and would be paid to the date of closing. I would strongly recommend that we acquire the property at 5345 Colfax. However, the last project we did that was similar in nature, the EDA seemed to want review approval over the home to be built beyond our normal review authority. If that is the case, we would have prospective buyers submit renderings of the proposed home and the EDA would select the one desired and in turn sell the lot to that builder. This is the same approach used in selling the old city hall site. The plus side of this approach is absolute control over what goes in there. The down side is that to the extent you require a house beyond market limitations you will affect the price of the lot. In essence you will end up subsidizing that building because you might not get all of the EDA's money back. At the other end of the spectrum, the EDA can offer the to the highest offer not bid, and allow its development as any other new single family construction would take place.- Assuming the EDA does decide to acquire, staff would like to discuss the approach to the sale of the property that this EDA deems appropriate. Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE PURCHASE OF CERTAIN BLIGHTED PROPERTY WHEREAS, the Economic Development Authority for the City of Brooklyn Center (EDA) has the authority pursuant to Minnesota Statutes, Chapter 462, to acquire real property for the purpose of removing blight and reselling such property for redevelopment; and WHEREAS, the EDA finds that the real property located at 5345 Colfax Avenue North and legally described as Lot 15 Block 4 Bellvue Acres - the north 63 feet of that part lying east of the west 110 feet thereof except street has become blighted and that it is in the best interests of the health, safety, and welfare of the City of Brooklyn Center to acquire the Property, remove the existing structures therefrom, and resell the Property for redevelopment; and WHEREAS, the EDA staff has negotiated the purchase of the Property for a price of $17,100; and WHEREAS, the EDA finds the purchase price and the terms of purchase to be reasonable. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1. The Executive Director is hereby authorized to enter into apurchase agreement for the Property at a purchase price of $17,100 and to take such steps as are necessary to acquire the Property. Date Chairman The motion for the adoption of the foregoing resolution was duly seconded by member , 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.