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HomeMy WebLinkAbout1986 05-19 HRAP HRA AGENDA CITY OF BROOKLYN CENTER MAY 19, 1986 (following adjournment of the City Council meeting) 1. Call to Order 2. Roll Call 3 Approval of Minutes - May 5, 1986 4. Resolutions: a. Authorizing Commencement of Eminent Domain Action Acquisition of right -of -way along Earle Brown Drive (Tract H) b. Approving Agreement between the City of Brooklyn Center and the Brooklyn Center Housing Redevelopment Authority Relating to Streetscape Improvements within the Earle Brown Farm Tax Increment District - This resolution confirms the action of the City Council in the same matter. 5. Adjournment MINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION MAY 5, 1986 CITY HALL CALL TO ORDER The Brooklyn Center Housing and Redevelopment Authority met in special session and was called to order by Chairman Dean Nyquist at 9 :45 p.m. ROLL CALL Chairman Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were HRA Director Gerald Splinter, Director of Public Works Sy Knapp, Director of Planning & Inspection Ron Warren, City Attorney Richard Schieffer, HRA Coordinator Brad Hoffman, Personnel Coordinator Geralyn Barone, and Administrative Aid Patti Page. APPROVAL OF MINUTES - APRIL 21 1986 There was a motion by Commissioner Scott and seconded by Commissioner Hawes to approve the minutes of the April 21, 1986 Brooklyn Center Housing and Redevelopment Authority meeting as submitted. The motion passed unanimously. The City Manager presented a Resolution Approving Transfer of Up to $8,250 to Hennepin County for a Rehabilitation Grant. He noted that this grant would allow for extermination and the house brought back up to code. Commissioner Lhotka asked if there would be any repayment on the grant. The HRA Director stated that there would only be repayment if the house were sold within a certain number of years. RESOLUTION N0. 86 -07 Member Rich Theis introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE TRANSFER OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO HENNEPIN COUNTY FOR A HOUSING AND REDEVELOPMENT GRANT The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and the motion passed with Commissioner Hawes opposed. ADJOURNMENT There was a motion by Commissioner Lhotka and seconded by Commissioner Theis to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Housing and Redevelopment Authority adjourned at 9:55 p.m. Chairman 5 -5 -86 -1- 10 1� 4 i Member introduced the following resolution and moved its adoption. HRA RESOLUTION NO. RESOLUTION AUTHORIZING COMMENCEMENT OF EMINENT DOMAIN ACTION WHEREAS, the Housing and Redevelopment Authority in and for the City of Brooklyn Center (HRA) did on July 22, 1985 approve a redevelopment plan and program (Redevelopment Plan) for the area of the City generally known as the Earle Brown Farm Area (Project Area) and did also approve on that date a tax increment financing plan (TIF Plan) for the area; and WHEREAS, the Redevelopment Plan and. TIF Plan were referred to the City of Brooklyn Center and were approved by the Council on July 22, 1985; and WHEREAS, lying within the boundaries of the Project Area is a tract of land legally described as Tract H, RLS 1380; and WHEREAS, the HRA finds that the acquisition of said lands is necessary in furtherance of the redevelopment goals and objectives for which the district was created; and WHEREAS, as the result of numerous title issues affecting ownership to Tract H, it is inappropriate to attempt to acquire title by a negotiated purchase; and WHEREAS, it appears to the satisfaction of the HRA that it is necessary to obtain title to and possession of Tract H, RLS 1380 at the earliest possible date. NOW, THEREFORE, BE IT. RESOLVED by the Housing and Redevelopment Authority of the City of Brooklyn Center as follows: 1. That the acquisition of Tract H, RLS 1380 is found to be necessary for the furtherance of the Redevelopment Plan. 2 That authority to acquire Tract H, RLS 1380 by eminent domain is hereby granted. 3. That authority to acquire title to and possession of Tract H, RLS 1380 pursuant to Minnesota Statutes, Section 117.042 (Quick Take) is hereby granted. HRA RESOLUTION NO. 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. MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, HRA Coordinator DATE: May 15, 1986 SUBJECT: Proposed Acquisition of Earle Brown Drive Attached are two (2) letters from the City Attorney's office relative to the acquisition of Earle Brown Drive. Apparently, our deed to the property was subject to a mortgage (note letter dated March 26, 1986). The land is still subject to a roadway easement because of the length of time it has existed as a road. However, that covers the area from curb to curb only. Our problem is providing access across a ten foot strip of land to the Farm and the proposed residential development. We could acquire just the ten foot strip, but the additional cost to clear the whole parcel should be minimal since the road area is still subject to a roadway easement. The acquisition of the entire parcel will eliminate any future problems involving the Tract. We will be available ailable to discuss the matter in greater detail Monday evening. REGISTERED LAND SURVEY NO. 1 z s}, o,o 04 ton ge my .J C'z`3. G : 2/g i 4: 0 3 0 . SS2 6 110, J C Zg TRACT C Q3i a. zezo �o ' 00 . n ^� o S 0 a 4, 8,r 9, C: $3 Z9 Q" 5 6 6 2 3 l3 P 2 a • v 4 5;1 E 290.00 p N8'330V "W .— 584 's AT L 6 TRACT D o s � as� 0c, Sol lS r TRACT B = N803InE 4q ,: pp \1•, a N N I Lu z ci I TRACT E I N o v 41 23 ' z ,9 _ 26� 0 4 441 1 . f34lvl 4. W C e48 '.� ti CENTE B �KlVN _ 1 24.31 _ R 36 2.7? - �Q p3.5n� PARK PIAO RIAL 40. �Itl.. �r6SOpp" 5 5\ � a0 1 1 �__ - No a point. OD t .3 N 69 4 - ti C� IN 8$ ! l4 E a 04 tangency W co 1 .• n Ly L 00 y N v+ E '��' � 9N TRACT F a Z; u TRACT A o� 7. 100 nJ N N a �, $ .. (` o d" 1 2; 0'1 �__ �• o�5s Q"a„^�^ // 2• s � ,;. 1 � - _ -� 0 � E 0• : 60.2 / / I°�? �°� d` O•� Not n point � c. �O „� . 4 i of tangency ' �Q Ka MN 589'2847 E y � ch OWN Nr- rd 4) M v P G P TRACT G y �y scale in feet - Beariny5 Shown are assumed ,P, O o Denotes iron monument I o z o 12o ya a �a•� ROY J. HANSEN LAND SURVEYOR qp. SHEET 2 OF 2 SHEETS LeFevere Lefler Kennedy O'Brien & DraNvz .-k Professional Assoc iadon 2000 First Bank Place West May 7, 198 Minneapolis Minnesota 55402 Telephone (612) 333 -0543 Telecopier (612) 333 -0540 Mr. Brad Hoffman Clayton L. LeFevere City of Brooklyn Center Herbert P. Lefler J. Dennis O'Brien 6301 Shingle Creek Parkway John E. Drawz Brooklyn Center, MN 55430 David J. Kennedy John B. Dean RE; Earle Brown Farm Redevelop District Tract H Glenn E. Purdue — Richard J. Schieffer RLS No. 1380 Charles L. LeFevere Herbert P. Lefler III Dear Brad • James J. Thomson, Jr. Thomas R. Galt Dayle Nolan Previously I sent a letter to Sy Knapp which summarized Brian G Rice the legal issues involved in acquiring Tract H John G. Kressel g q g T , RLS Lorraine S.Clugg No. 1380. As you know, Tract H is a parcel of land which James M. Strommen is occupied in part by Earle Brown Drive. The HRA has Wn H. Batty determined that certain portions of Tract H which lie P. Jordan Di ckel Minsberg outside of the roadway be conveyed to the developer of Kurt J. Erickson the elderly housing development, and other portions, William R. Sk nder d Rodney D. Anderson adjacent to the farm, be used for pedestrian walkways and Corrine A. Heine streetscape. John R. McDonald, Jr. David D. Beaudoin When the redevelopment and tax increment financing plans were adopted by the City and the HRA last summer, it was assumed that all of Tract H was owned by the City. Earlier this year we were asked to examine title to Tract H. Our conclusions were contained in the letter to Mr. Knapp. Because Tract H is not owned by the City, two actions are necessary to enable the City and /or HRA to proceed to acquire the property. Because of the assumption as to ownership, Tract H was not designated for acquisition in the redevelopment and TIF Plans. (It was, however, included within the dis- trict boundaries.) In order to permit the use of the tax increment bond proceeds to be used to acquire Tract H, it is therefore necessary to modify the redevelopment and TIF plans to so provide. Recently the HRA initiated that process by proposing the modification. The modification will be coming before the City Council at its meeting on May JZfh. >5 �i Mr. Brad Hoffman Page 2 May 7, 1986 The modification is designed to accomplish two objec- tives: 1. To designate Tract H for acquisition. 2. To restate the plan budget so as to provide suffi- cient money to purchase Tract H. It should be noted that the restatement is fully consis- tent with the TIF Bond issue, and no additional borrowing or bonding will be necessary as a consequence of adopting the restated budget. I will be available to attend the public hearing on this matter and respond to questions. Respectfully yours, - k l� John can 0007LTO1.E14 ' LeFevere Lefler Kennedy O'Brien & Drawz A Professional association 2000 First Bank Place West March 26, 19 8 6 Minneapolis Minnesota 55402 Telephone (612) 333 -0543 Telecopier (612) 333 -0540 Sy Knape Clayton L. LeFevere Director of Public Works Herbert P. Lefler J. Dennis O'Brien City of Brooklyn Center John E. Drawz 6301 Shingle Creek Parkway David J. Kennedy Brooklyn Center, MN 55430 John B. Dean Glenn E. Purdue Richard J. Schieffer Dear Sy Charles L. LeFevere Herbert P. Lefler III In late February proper Jeffrey J. Strand y you asked for our advice in the ro er John G. Kressel procedure for integrating Tract H, RLS 1380 into the new Dayle Nolan plat for Brooklyn Farm. The object, as visualized at Brian F. Rice that time, was to provide for the transfer of certain Lorraine S. Clugg p James J. Thomson, Jr. portions of the Tract H land to abutting property owners. James M. Strommen P.atty As you know, our review of the information has disclosed Dickel Minsberg there are significant issues relatin g to the title to Kurt J. Erickson Tract H which must be addressed before any part of William R. Gallerud Tract H can be made available for development. Thomas R. Galt p Rodney D. Anderson Gary R. Bryant- -wolf Status ' of Ownership Corrine A. Heine John R. McDonald, Jr. The title issues relating to Tract H are somewhat complex, however, in somewhat general terms, the follow- ing can be said: 1. In 1974 and again in 1975 Tropicana Holding conveyed 'to Brooklyn Center, by quit claim deed, an interest in Tract H. The 1974 deed contained a recital that the conveyance was for street and utility purposes. The 1975 deed contained a recital that the conveyance was for street purposes. It is not possible from either instrument to determine whether the interest conveyed was an easement or fee. Such a determination can be made in either of two ways a) Reformation, e.g., obtain a new quit claim deed which recites that the grantor's original intent was to convey either easement or fee; b) Having the deeds judicially construed by a proceeding subsequent. In such an action, the court would attempt to ascertain the intent of the parties at the time of the initial conveyances. Sy Knapp Page 2 March 26, 1986 2. The attempt to ascertain the nature of the two conveyances is further complicated by at least two further factors a) At the time of the conveyances to the City there was a mortgage on a portion of Tract H (approximately the south half) Subsequent to the conveyance, that mortgage was foreclosed and Tropicana redeemed the property. This situation suggests that Tropicana believed it owned the fee on the date of foreclosure.' Moreover, the foreclosure and redemption may have worked to extinguish the interest of the City based upon the earlier conveyances. This, again, would be an issue in a proceeding subsequent,:. b) The Certificate of Title for Tract H contains a memorial of a Final Certificate whereby the State of Minnesota acquired a fee simple interest to.a portion of Tract H (approximately the north quarter). The Final Certificate predates the "conveyances to the City. There- fore, to the extent that the Final Certificate embraced portions of Tract H, our deeds from Tropicana conveyed nothing. After reviewing the condemnation file and the Right of Way Plat, we believe that the memorial is in error and the Final Certificate did not affect Tract H. Nonetheless, a proceeding subsequent would be necessary to determine the interest of the state in Tract H. 3. In addition to whatever interest the City may have in Tract H by virtue of the two deeds of conveyance, the City has a separate source of interest in at least some of Tract H. Minnesota Statutes Sec- tion 160.05 provides for dedication, by operation of law, of roadways which are kept open and repaired and working for at least six years. The statutory dedication has two features of note: a) The road is deemed dedicated_- only to the width of actual use, and b) the interest of the City is not in fee. Although the foregoing is a somewhat sketchy review of the title issues pertaining to Tract H, it does suffice to indicate that the City is not in a position to convey, in fee, any portion of Tract H. There are several ways . that the City could .obtain marketable title to Tract H However, the quickest way would be by condemnation. In Sy Knapp Page 3 March 26, 1986 such an action, all of the various contenders for title and all encumbrancers would be brought in as parties. The contending parties would then seek to have their various interests determined so that they could partici- pate in the award. Although the City /HRA would be primarily interested iA a 10 -foot wide portion of Tract H, I believe that the City could persuasively argue to the court that the taking of the entirety of Tract H was appropriate. If you determine that we should proceed to condemn the property, the following steps should be taken: 1. Preparation of the necessary title work. 2. Appraisal. 3. City and HRA authorization to condemn and quick take. (I assume that no federal funds are in- volved.) 4. Hearings and Award: As you know, the quick take procedure is effective 90 days after notice to take is served upon the owners and encumbrancers. Please_ advise if you have any further comments or questions. Respectfully yours, Jo n B. Dean J :lr 41h) Member introduced the following resolution and moved its adoption: HRA RESOLUTION NO. RESOLUTION APPROVING AGREEMENT AND AUTHORIZING EXECUTION BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Brooklyn Center (Authority) as follows: 1. The document entitled: "Agreement Regarding Construction of and Payment for Certain Public Improvements" (Agreement) a copy of which is attached hereto as Exhibit A is hereby approved. 2. The Chairman and Executive Director are hereby authorized to execute the Agreement on behalf of the Authority. 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. i