HomeMy WebLinkAbout2011 08-08 EDAP Regular Session • EDA MEETING
City of Brooklyn Center
August 8, 2011 AGENDA
1. Call to Order
—The EDA requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full City Council packet, including EDA (Economic Development Authority),
is available to the public. The packet ring binder is located at the front of the Council
Chambers by the Secretary.
2. Roll Call
3. Approval of Agenda and Consent Agenda
—The following items are considered to be routine by the Economic Development
Authority (EDA) and will be enacted by one motion. There will be no separate
discussion of these items unless a Commissioner so requests, in which event the item will
be removed from the consent agenda and considered at the end of Commission
Consideration Items.
a. Approval of Minutes
1. July 25, 2011 - Regular Session
• 4. Commission Consideration Items
a. Resolution Approving Modification of Tax Increment Financing Plan for Tax
Increment Financing District No. 2 and Modification of the Redevelopment Plan
for Housing Development and Redevelopment Project No. 1
Requested Council Action:
Motion to approve resolution.
b. Resolution Authorizing the Acquisition of Six Undeveloped Parcels Within the
Preliminary Plat of Eastbrook Estates 2nd Addition to Preserve Future Residential
Housing Development Opportunities
Requested Council Action:
— Motion to approve resolution.
5. Adjournment
EDA Agenda Item No. 3a
•
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
REGULAR SESSION
JULY 25, 2011
CITY HALL — COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Tim Willson at 7:38 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan
Ryan. Also present were Executive Director Curt Boganey, Director of Fiscal and Support
Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business
and Development Gary Eitel, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off
Site Secretarial, Inc.
• 3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Roche moved and Commissioner Ryan seconded approval of the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. June 27, 2011— Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2011 -17 APPROVING DEVELOPMENT AGREEMENT
WITH REAL ESTATE RECYCLING, LLC (ENVIRONMENTAL TESTING
LOAN)
Director of Business and Development Gary Eitel introduced the item, discussed the history, and
stated the purpose of the proposed resolution to lend the developer, solely from TIF No. 2
available tax increment, an amount of no more than $76,353, or the sum of the cost of the
eligible costs actually incurred and paid by the developer for environmental remedial
investigation of the development property, which is the Howe Fertilizer site. The developer will
• repay $70,000 of the Loan's principal amount within 30 days of receipt of the ACCRA Grant
07/25/11 -1- DRAFT
from the Minnesota Department of Agriculture, but no later than December 1, 2011. The
developer will repay the remaining balance of the principal amount by July 1, 2013. •
Mr. Eitel explained that to qualify as a spending plan activity under the Minnesota Jobs Bill, the
developer is required to create a minimum of two full -time equivalent jobs in connection with
the construction of the minimum improvements, which is a 51,000 to 60,000 sq. ft. industrial
building, by June 30, 2013. In the event the developer fails to commence construction by
June 30, 2012, (the extended deadline of the Minnesota Jobs Bill) the outstanding principal of
the loan shall be immediately paid in full.
Commissioner Lasman moved and Commissioner Ryan seconded adoption of EDA
RESOLUTION NO. 2011 -17 Approving Development Agreement with Real Estate Recycling,
LLC (Environmental Testing Loan).
The EDA indicated its support for this project, which involved many challenges, and thanked
staff for its diligence. The EDA also recognized the efforts of the late Senator Scheid who had
been instrumental in moving this project forward.
Mr., Boganey indicated a lot of credit goes to Real Estate Recycling, who is continuously looking
for opportunities to redevelop this type of site, are experts in finding grants, identifying what
needs to be done, and turning such sites into productive uses once again.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Roche moved and Commissioner Ryan seconded adjournment of the Economic
Development Authority meeting at 7:42 p.m.
Motion passed unanimously.
•
07/25/11 -2- DRAFT
EDA Agenda Item No. 4a
EDA ITEM MEMORANDUM
DATE: August 2, 2011
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business and Development
SUBJECT: Resolution Approving Modification of Tax Increment Financing Plan for Tax
Increment Financing District No. 2 and Modification of the Redevelopment Plan
for Housing Development and Redevelopment Project No. 1.
Recommendation:
It is recommended that the Economic Development Authority Development Authority (EDA)
consider approval/adoption of the Resolution Approving Modification of Tax Increment
Financing Plan for Tax Increment Financing District No. 2 and Modification of the
Redevelopment Plan for Housing Development and Redevelopment Project No. 1
Background:
On June 27, 2011, the City Council adopted Resolution No. 2011- 97, which set a public hearing
for August 8, 2011 to consider an amendment to the Tax Increment Financing Plan for Tax
• Increment Financing District No. 2 that includes the following components:
1. The amendment restates and clarifies the revenues and disbursements of the original plan and
the 1991 amendment and formally amends the Finance Plan to address line item changes of
the 2004 the administrative budget amendment.
2. The amendment acknowledges the Tax Increment District 2 Spending Plan, as authorized by
the 2010 Minnesota Jobs Bill and approved by the City Council and EDA on April 28, 2011
and June 27, 2011,
3. The budget amendment will enable the use of the 2011 Tax Increment to fund the following
eligible tax increment activities:
- $150,000 for the Brooklyn Boulevard Corridor Transportation Study;
- $350,000 for property acquisitions,
- $170,000 for public improvements, including intersection improvements, street lighting,
and streetscaping, and
- $60,000 for other EDA authorized Transportation/Land Use Studies.
4. The amendment provides a TIF 2 budget that would allow the EDA to reinvest the
repayments of the TIF District 2 Spending Plan inter -fund loan for the following future'
public improvements:
- the Brooklyn Boulevard Corridor,
- the 57 Ave. Corridor, and/or
- the Humboldt Ave. Corridor.
. On August 8, 2011, the City Council is conducting a public hearing to consider these
modifications /amendments to Tax Increment Financing District No. 2.
Mission: Ensuring an attractive, clean, safe comuuinity that enhances the quality of life and preserves the public trust
EDA ITEM MEMORANDUM
Tax Increment District No. Z
Tax Increment District No. 2 was established in 1985 as a Redevelopment District to remedy
conditions of economic obsolescence, physical blight, under utilization of land, extensive soil
corrections which the private sector has not been willing or able to accomplish and correction of
numerous traffic hazards and pedestrian conflicts.
In 1991, the District's Finance Plan was amended to include additional TIF budget allocations to
the following line items:
- Land/Building Acquisitions
Installation of Public Utilities
- Parking Facilities
- - Streets and Sidewalks .
- Social, Recreation & Conference ( an eligible activity prior to 2000)
In 1994, the District's project area was enlarged to include the geographic boundaries of
the city and the following additional objectives were added:
• To enhance the tax base of the City.
• To provide maximum opportunity, consistent with the needs of the City, for
redevelopment by private enterprise.
• To better utilize vacant or undeveloped land. •
• To attract new businesses.
• To acquire blighted or deteriorated residential propriety for rehabilitation or
clearance and redevelopment.
• To develop housing opportunities for market segments underserved in the City,
including housing for the disabled and elderly.
A 2001 Legislative amendment: provided for the Duration Limit of a District to be 25 years from
the date of receipt by the authority of the first tax increment (469.176, subd. 1 b (a) (4) (Supp.
2001). The decertification of this district was adjusted to December 31, 2011.
In 2004, the EDA adopted Resolution No. 2004 -13 which approved an administrative
amendment to the Tax Increment Financing Plan for Tax Increment Financing (Redevelopment)
District which reallocated the $53,774,537 budget.
The attached Modification/Amendment to Tax Increment District No. 2 has been prepared by the
City's Financial Consultant, Springsted Incorporated; and has been designed to provide the EDA
with the opportunity to maximize the use of available tax increment to promote economic
development/redevelopment and investment into community's infrastructure.
The plans have been distributed to Hennepin County and ISD No. 286.
Mission: Ensuring an attractive, clean, safe comnumity that enhances tite quality of life anti preserves the public trust
t.
EDA ITEM MEMORANDUM
Budget Issues:
The 2011 Tax Increment revenue from TIF District No. 2 is projected to be approximately
$856,000 of which $ 399,576.99 has been received from the 1 half tax distribution.
The repayment of the TIF 2 inter -fund loan from the Shingle Creek Crossing Development is
shown on the TIF 5 Projected Cash Flow and Debt Repayment Spreadsheet to begin in 2022,
after the PAYG Promissory Note and other potential in district expenditures have been satisfied.
This debt repayment schedule is dependent on the construction schedule and the new assessed
valuations (captured tax increment) of the Shingle Creek Crossing Project. However, the EDA
has the authority to restructure the debt repayment schedule and could expedite the repayment of
the TIF 2 inter -fund loan as an option to additional TIF 5 in- district expenditures or the timing of
their repayment.
Attached for your reference is a copy of this spreadsheet.
Beginning in 2012, the captured tax capacity of $528,888 from Tax Increment District 2 will be
returned /added to the base tax capacities of all of taxing jurisdictions.
Council Goals:
• Strategic:
2. We will aggressively proceed with implementation of City's redevelopment plans
Ongoing:
2... We will ensure the financial stability of the City
I '
Mission: Ensuring an attractive, clean, safe community that enhances the quality of life andpreserves the public trust
its adoption: Member introduced the following resolution and moved •
RESOLUTION NO.
RESOLUTION APPROVING MODIFICATION OF TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.
2 AND MODIFICATION OF THE REDVELOPMENT PLAN FOR
HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. l
BE IT RESOLVED by the City Council (the "Council ") of the City of Brooklyn
Center, Minnesota (the "City "), as follows:
Section 1. Recitals
1.01. The Brooklyn Center Economic Development Authority (the "EDA ") has heretofore
established the Housing Development and Redevelopment Project No. 1 (the"Proj ect Area") and has
adopted a redevelopment plan therefor (the "Redevelopment Plan") pursuant to Minnesota Statutes,
Sections 469.001 to 469.047, as amended.
1.02 The EDA has asked the Council to approve the Modification to Redevelopment Plan
and the Modification No. 3 to Tax Increment Financing Plan for Tax Increment Financing District
No. 2 (the "TIF Plan Modification"), hereto created as a redevelopment tax increment financing •
district under Minnesota Statutes, Section 469.174, Subdivision 10 (the "TIF District"), all pursuant
to and in accordance with Minnesota Statutes, Section 469.174 through 469.1799 (the "Tax
Increment Act ").
1.03. The EDA has performed all actions required by law to be performed prior to the
modification of the Redevelopment Plan and the adoption and approval of the TIF Plan
Modification, including, but not limited to, notification of the Hennepin County Commissioner
representing the area of the County in which the TIF District is located, and delivering a copy of the
TIF Plan Modification to Hennepin County and Independent School District; Districts Nos 286
(Brooklyn Center) and 281 (Robbinsdale), which have taxing jurisdiction over the properties
included in the TIF District. The EDA has requested that the City approve the modification of the
Redevelopment Plan and the TIF Plan Modification following the holding of a public hearing upon
published and mailed notice as required by law.
Section 2. Findings for the Adoption of the TIF Plan Modification and the Modification to the
Redevelopment Plan
2.01 The Council finds that the modification of the Redevelopment Plan and the TIF Plan
Modification are intended and, in the judgment of the Council, the effect will be, to carry out the
objectives of the Redevelopment Plan and to create an impetus for redevelopment activities
associated with better utilizing, blighted, polluted and underutilized land and enhancing the tax base
of the City, in an effort to provide an ongoing benefit to residents in the City and to those who •
frequent die area in the Cit 1 and to otheiv se promote certain public purposes and accomplish
RESOLUTION NO.
certain objectives as specified in the Redevelopment Plan, as modified, and in the TIF Plan
Modification.
2.02 The Council hereby ratifies and confirms the findings made in connection with the
establishment of the TIF District.
The Council hereby makes the following additional findings:
(a) The Council further finds that the proposed development, in the opinion of the
Council, would not occur solely through private investment within the reasonably foreseeable
future and, therefore, the use of tax increment financing is deemed necessary. The specific
basis for such finding being:
The project creates a need and opportunity better utilize blighted,
polluted and underutilized land, to provide decent, safe and sanitary
housing for persons of low and moderate income; to enhance the tax
base in the City, and to provide maximum opportunity for
development of private enterprise consistent with the needs of the
City, which are public redevelopment costs that would not be
financed by the private sector, particularly due to extensive
• redevelopment costs including site remediation, inadequate
infrastructure and environmental contamination.
(b) The Council further finds that the TIF Plan Modification conforms to the
general an for the development or redevelopment of the City as a whole. The specific basis
p p
for such finding being:
The TIF Plan Modification will generally compliment and serve to
implement policies adopted in the City's comprehensive plan. The
public redevelopment contemplated by the TIF Plan Modification is
in accordance with the City's comprehensive plan.
(c) The Council further finds that the TIF Plan Modification will afford
maximum opportunity consistent with the sound needs of the City as a whole for the
development of the TIF District by private enterprise. The specific basis for such finding
being:
L,
The proposed development to occur within the TIF District is
commercial and industrial development consistent with other
development in the area in and area targeted for redevelopment and
activities will include land acquisition and acquisition of any "
necessary right of way, transportation and land use studies, and
construction of public improvements necessary for private
redevelopment which will reduce blight and increase the taxable
• market valuation of the City,
RESOLUTION NO. •
Section 3. Approval of the TIF Plan Modification and Modification of the Redevelopment Plan
3.01 The Modification of the Redevelopment Plan and the TIF Plan Modification are
hereby approved.
3.02 The staff of the EDA and the EDA's advisors and legal counsel are authorized and
directed to proceed with the implementation of the Modification to the Redevelopment Plan and the
TIF Plan Modification.
August 8, 2011
Date Mayor
ATTEST:
City Clerk
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.
P P
Yp
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Brooklyn Center Economic Development
Authority, Minnesota
Modification to Redevelopment Plan for
Housing Development and Redevelopment Project No.1
And
Modification No. 3 to Tax Increment Financing Plan for
Tax Increment Financing District No. 2
(A Redevelopment District)
Within Housing Development and Redevelopment Project No.1
(Earle Brown Farm Project)
Dated: July 21, 2011 (Final)
Modification Approved: August 8, 2011 (scheduled)
Original Plan adopted July 22,1985
Modification No.1 adopted February 1, 1991
Modification No. 2 adopted April 25,1995 (Project Area modified)
Prepared by:
SPRINGSTED INCORPORATED
380 Jackson Street, Suite 300
St. Paul, MN 55101 -2887
(651) 223 -3000
WWW.SPRINGSTED.COM
Introduction
The purpose of this Modification No. 3 to the Tax Increment Financing Plan for Tax Increment Financing
District No. 2 is to make adjustments to the Estimated Project Costs and Estimated Revenue Sources.
This modification increases the overall spending of a "TIF only" budget (the original and previously, modified
budgets included non -TIF revenues and assumed spending).
The
sections s' eciflcall being specifically g modified are the Acquisition Plan, Estimated- Protect Costs, Revenue
Sources and Impact on Taxing Jurisdiction. This modification does not reflect all the legislative changes
that have occurred since original adoption, and may not reflect fully the financial ramifications of all the TIF
and properly tax system changes.
Furthermore, this modification includes the estimated fiscal and economic implication of the tax increment
financi district as modified which was not a re quirement when he Original TIF PI FDistrict No 2
9 � q t ig an for T! i t
was adopted.
I
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•
. TABLE OF CONTENTS
Section Page(s
SectionI Definitions ................... .......................... ............................... .... .... .. ................ 1
Section 11 Modification to Redevelopment Plan for Redevelopment Project ...................... .............................2
Section I I.A Statement and Finding of Public Purpose .............. ............................. ...........................2
Section 11.13 Statutory Authorization ............ ............................... ..... ............ ....... ...... 2
Section I I.0 Statement of Objectives ................................................................ ..............................2
Section III Modification of TIF District No.2 ........... ............................... ................ ..............................3
Section I1I.A Acquisition Plan ................................... ............................... .. ............................... 3
Section 11 1.13 Estimated Project Costs .... ............................... ............................. ..........................3
Sectiontll.0 Estimated Revenue Sources ........................... ............................... ............................4
Section I II.D Impact on Taxing Jurisdiction .................. ............................... .................. ..................6
Exhibit I: Map of Project Area and TIF District . ............ ............ ...... ...... 7
•
Brooklyn Center Economic Development Authority, Minnesota
Section 1 Definitions •
The terms defined in this section have the meanings given herein, unless the co ntext in which they a re used indicates
a different meaning:
"Authod ' means the Economic Development Authority in and for the City of Brooklyn Center.
"City" means the City of Brooklyn Center,; Minnesota; also referred to as a "Municipality"
"City Council" means the City Council of the City; also referred to as the "Governing Body
"County" means Hennepin County, Minnesota.
"EDA Act" means Minnesota Statutes, Section 469.090 to 469.108, inclusive, as amended.
"HRA Act" means Minnesota Statutes, Section 469.001 to 469.047, inclusive, as amended.
"Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project.
"Redevelopment Project" means Housing Development and Redevelopment Project No. 1 in the City, which is
described in the corresponding Redevelopment Plan.
"Project Area" means the geographic area of the Redevelopment Project.
"School District" means Brooklyn Center School Distdct/ISD No. 286, Minnesota.
"State" means the State of Minnesota. •
"TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive.
"TIF District" means Tax Increment Financing District No. 2.
"TIF Plan Modification means Modification No. 3 to the tax increment financing plan for the TIF District (this
document).
Springsted Page 1
Brooklyn Center Economic Development Authority, Minnesota
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Section II Modification to Redevelopment Plan for Redevelopment Project
The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1: This
modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for
Redevelopment Project No. 1. Generally, the substantive changes include the modification of the estimated public
costs and estimated revenues sources for the TIF District.
The Estimated Public Costs is modified to include those set forth in Section 111.6 of the TIF Plan Modification and the
Estimated Revenue Sources is modified to include those set forth in Section Ill. C of the TIF Plan Modification.
For further information, a review of the Redevelopment Plan for Redevelopment Project No.1 is recommended and is
available from the City of Brooklyn Center. Other relevant information is contained in the Tax Increment Financing
Plan for Tax Increment Financing Districts No. 1, No. 2, No. 3, No. 4, and No. 5 located within Redevelopment Project
No. 1.
A map of Redevelopment Project No.1 is shown in Exhibit 1.
Section ILA Statement and Finding of Public Purpose
On April 25, 1994, the City Council and Authority expanded the geographic boundaries of the Earle Brown Farm
Redevelopment Project to include Housing Development Project No. 1 and other properties and provided additional
housing powers. The modified redevelopment project is renamed Housing Development and Redevelopment Project
No. 1.
The Authority intends to use the powers allowed under the EDA Act and HRA Act to promote development and
redevelopment through the City and to pool resources in order to reduce financial barriers to providing decent housing
and employment opportunities.
Section ILB Statutory Authorization
On August 24, 1987, the City Council authorized the establishment of the Brooklyn Center Economic Development
Authority (Authority). Pursuant to City Council Resolution No. 87 -170, the Authority has and may exercise all of the
powers conferred by law upon a Housing and Redevelopment Authority. The Authority has been authorized by the
City to carry out all powers of and administer all projects initiated by the Brooklyn Center HRA. The Authority
established Housing Development and Redevelopment Project No.1 pursuant to the EDA Act and the HRA Act. HRA
Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted
under Minnesota Statutes, Sections 469.001 to 469.047, or other law.
Within the City areas exist where public involvement is necessary to cause redevelopment to occur. The Authority has
certain statutory powers pursuant to the TIF Act to assist in financing eligible activities related to these redevelopment
needs.
Section ILC Statement of Objectives
The sampling of the general goals and objectives of the Redevelopment Plan are listed below:
• To provide decent, safe and sanitary housing for persons of low and moderate income.
• To provide governmental assistance to eliminate slum and blight.
• To provide an ongoing benefit to the residents of the City and those who may frequent the area.
■ To enhance the tax base of the City.
Springstcd - Page 2
i
Brooklyn Center Economic Development Authority, Minnesota
• To provide maximum opportunity, consistent with the needs of the City, for development by private •
enterprise.
• To better utilize vacant or undeveloped land.
This modification of the estimated public costs for TIF District No. 2 will ensure a continuation of the FDA's goals and
objectives of the Project Area that result in increased opportunities for commercial development and will otherwise
benefit the health, safety, morals and welfare of the residents of the City.
Section III Modification of TIF District No. 2
Section III.A Acquisition Plan
The 2nd modification of Tax Increment Financing District No. 2 expanded the project area by combining the Earle
Brown Farm Redevelopment Project and the Housing Development Project No. 1 into the Housing Development and
Redevelopment Project No. 1. A copy of the map of the project area is included in Exhibit I and indicates the
boundaries of TIF District No. 2. The 2nd modification authorized that the City may acquire any parcel located in
Housing Development and Redevelopment Project No. 1 (Project Area). We restate this authorization and include
additionally authorization for the EDA to acquire any property within the Project Area. The EDA intends to acquire
property within the Project Area to further Redevelopment Plan objectives including acquisition of any necessary right
of way in connection with the projects listed in Section 111.13 below.
Section 111.13 Estimated Project Costs '
The estimated project costs are based solely upon those projects involving expenditures on the part of either the City
or EDA. Table I shown on page 5 includes the estimated project costs to be paid for or financed with tax increments, •
as modified.
ANTICIPATED DEVELOPMENT EXPECTED TO OCCUR AFTER JUNE, 2011
The estimated project costs detailed in Table I include the following added projects:
• EDA land purchases within Project Area
• Brooklyn Boulevard Corridor Transportation /Land Planning Study
• EDA authorized Transportation /Land Use Studies
• Intersection improvements, Street Lighting and Streetscape improvements
• Public improvements in and around Brooklyn Boulevard Corridor, 57th Avenue Corridor, and Humboldt
Avenue Corridor
• Jobs Bill Projects (amended, originally authorized in April, 2011):
o D -Barn pedestrian link project
o Shin,le Creek Crossing redevelopment project (including assistance to purchase Midas property)
o Environmental remediation /redevelopment of Howe Fertilizer Site
The Authority reserves the right to administratively adjust the amount of any of the items listed in Table I or to
incorporate additional eligible items, so long as the total estimated project costs to be paid for or financed with tax
increments is not increased. •
Springsfed page 3
Brooklyn Center Economlc Development Authorlty, Minnesota
Section IILC Estimated Revenue Sources
The primary revenue source for financing the estimated project costs will be tax increment revenue. Also available for
the acquisition of the Earle Brown Farm are Community Development Block Grant Funds and land sales. Only
expenditures from land sales have been included in the estimated project costs detailed above (the Community
Development Block Grant funds have been removed).
The original estimated captured value for the district was based on development completed and fully assessed by
1991. In addition to the capture of the increment for new development, it was anticipated that additional increment
would be obtained for increased values, both new and existing development, during the life of the district. It was
assumed that assessed values would increase at three (3) percent annually.
Addendum B -6 in the Original Plan included the revenue expenditures schedule which included the projected tax
increment revenue based on the redevelopment assumptions. The total tax increment projected in this addendum is
$29,771,527.
The City has been reporting a budget of $6,025,848 which was included in the original plan in Addendum B -5
(budget) as an amount of tax increment bond proceeds to finance project costs; however the total increments
included in Addendum B -6 is the estimated amount of tax increments that would be collected through the projected
term of the district.
Table I shown on the following page includes the estimated tax increment revenues, as modified.
i
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Sprinasted Page 4
Brooklyn Center Economic Development Authority, Minnesota
Section IILD Impact on Taxing Jurisdiction
The Original TIF Plan included two tables with the mill rates and net annual affect upon the various taxing entities,
below these tables are updated to include the Pay 2011 tax rates and impacts, which is the final year of the TIF
district (25 years after the first yearof`receipt of increment).
Taxing Jurisdiction Tax Rates Captured Tax Increment
Pay 1985 Pay 2011 Pay 1985 Pay 2011
City of Brooklyn Center 16.506% 58.558% $140,152 $309,706
Brooklyn Center School Dist #286 49.332% 47.697% $420,088 $252,264
Hennepin County 29.262% 45.840% $249,392 $242,442
Miscellaneous 6.671% 9.740% $57,221 $51,514
Totalst 101.771% 161.835% $866,853 $855,926
* The estimated tax increment per taxing jurisdiction for Pay 2011 is calculated by multiplying the tax -rate by the
captured tax capacity of $528,888 (reported by Hennepin County).
The fiscal and economic implications of the tax increment financing district, as modified, are shown below. For the
estimated amount of tax increments attributable to the school district and county levies, Pay 2011 is all that is
included as the final year of the TIF district
(1) the total estimated amount of tax increment that will be generated over the life of the district is $24,390,000;
(2) the modifications made herein are not expected to result in significant cost increases for city - provided services •
such as police and fire protection, or public infrastructure, and would not impact the City's ability to issue debt for
I
general fund purposes;
(3) the estimated amount of tax increments for Pay 2011 that would be attributable to the school district levy is
$252,264 as shown in the table above; and
(4) the estimated amount of tax increments for Pay 2011 that would be attributable to the county levy is $242,442 as
shown in the table above;
Sorinttsted Page 6
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Redevelopment Project No. 01 and
Tax Increment Financing District No. 2 •
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0 500 1,000 2,000
Feet Legend
` .° °° ° °�" TIF -2 Parcels
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Central Commerce District
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Shingle Creek Crossing TIF District
Projected TIF District Cash Flow and Debt Repayment
REVENUE EXPENDITURES Annual
Calendar Projected Tax Admin Exp Pay -As -You Go Note Payments Projected Interlund Loan Repayments Reimb Other Pooled Exp Surplus/
Year Ending Increment (TI) 1006 TI Principal Interest Total P &1 Principal Interest Total P &I Indistrict Exp 10% TI (Deficit)
1) (2 ) (3 ) (4 (5) (6) ) 8 (9) (10 ) (11) (12).
12/31/2011 0 0 0 0 0 0 0 0
1.2/31/2012 0 0 0 0 0 0 0 0
1213112013 7,264 726 0 6,538 6,538 0 0 0
12/31/2014 302,214 30,221 0 271,993 271,993 0 0 0
12/31/2015 751,570 75,157 335,491 340,922 676,413 0 0 0
12131/2016 839,896 83,990 391,857 112,080 503,937 0 251,969 (0)
12/3112017 839,895 83,990 415,721 88,215 503,937 0 251,969 (0)
12/31/2018 839,895 83,990 441,039 62,898 503,937 0 251,969 (0)
12/31/2019 839,895 83,990 467,898 36,039 503,937 0 251,969 (0)
12/31/2020 839,895 83,990 247,994 7,544 255,536 0 0 0 500,367 0
12/31/2021 839,895 83,990 0 0 0 0 0 0 755,905 0
120/2022 839,895 83,990 0 516,905 516,905 239,000 0
12/31/2023 839,895 83,990 0 556,243 556,243 199,662 0
12/3112024 839,895 83,990 381,390 174,852 556,243 199,662 0
12/31/2025 839,895 83,990 475,498 80,744 556,243 199,662 0
12/31/2026 839,895 83,990 494,518 61,724 556,243 199,662 0
12/31/2027 839,896 83,990 514,299 41,944 556,243 199,662 0
12/31/2028 839,895 83,990 534,294 21,372 555,666 199,662 577
11,979,683 1,197,974 2,300,000 926,228 3,226,228 2,400,000 1,453,784 3,853,784 2,503,146 1 ,197,974
(2) Projected Tax Increment revenue is net of State Auditor deduction of 0.36%
(3) Administrative Expenditure is 10% of annual revenue in column (2)
(4), (5), (6) Pay As You Go Note Payments represent payments on principal amount of $2.3M accruing interest at 6 %, unpaid interest accrues without interest
Available increment to service pay -go is 90% in the first 3 years (2013-2015), 60% thereafter until retired
(7), (8), (9) - Anticipated repayment to City /Authorfiy for fnterfund loan of $2,400,000 for land acquisition, assumed interest rate is 4% accruing from 1213112011
(10) The TIF Plan authorizes an approximate $1.83 IM of additional fndistrict expenditures, amount shown includes interest repayment of $671,455
(11) Pooled Expenditure is delayed until indishict expenditures are complete, to total 10% of total tax increment (TI) in column (2)
(12) The annual surplus/(deficit) subtracts totals in columns (3), (6), (9), (10) and (11) from the TI Revenue in column (2)
If expenditures in col. (10) & (11) do not occur, but the projected revenue in cola (2) and debt of $2.3 M and $2.4 M each occur as projected, the district could close In year
underlined (2023), 5 years prior to statutory deceriffication. The available funds In the district would retire the pay-as-you-go note and repay the Interfund Loan early.
Springsted Page 23
EDA Agenda Item No. 4b
•
•
EDA ITEM MEMORANDUM
DATE: August 2, 2011
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business and Development -
SUBJECT: Resolution Authorizing the Acquisition of Six Undeveloped Parcels Within the
Preliminary Plat of Eastbrook Estates 2nd Addition to Preserve Future Residential
Housing Opportunities.
Recommendation:
It is recommended that the Economic Development Authority consider approval/adoption of the
Resolution Authorizing the Acquisition of Six Undeveloped Parcels Within the Preliminary Plat
of Eastbrook Estates 2nd Addition to Preserve Future Residential Housing Opportunities.
Background:
On April 11 2011, the City Council discussed the following policy issues related to a proposal
by David Evanson to sell the EDA 5 parcels of land, comprising 5.7 acres in area, which
collectively are significant portion of the Preliminary Plat of Eastbrook Estates 2 °d Addition:
1. Does the City Council believe that it is in the community's best interest to reserve this
• land to maximize future housing redevelopment opportunities for the community?
2. Does the City Council support the prioritizing of the use of TIF #3 Housing Funds for
this acquisition?
The consensus of the City Council/EDA, in an effort to assure the property is not underatilized,
was to support the acquisition of the 5.7 acres and directed staff to negotiate an attractive price,
to be funded from TIF District No. 3.
The City Council/EDA also asked staff to determine the status of any remaining parcels that
were part of the preliminary plat.
Attached for your reference is a copy of the City Council Minutes on this discussion and staff
memorandum.
Preliminary Plat of Eastbrook Estates 2 nd Addition:
On January 26, 2004, the City Council granted preliminary plat approval to the subdivision of
Eastbrook Estates 2 ° d Addition, the subdivision of approximately 8.75 acres into 29 single family
residential lots.
The draft final plat of Eastbrook Estates 2n Addition illustrates the creation of 25 lots with the
southeast corner of the subdivision being retained by MnDOT for Hwy 252 right of way.
Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust
EDA ITEM MEMORANDUM
This plat includes the assemblage of 8 parcels which are under the ownership of the developer •
and 3 other property owners.
The attached exhibit illustrates the location and ownership of these parcels with the following
information provided by the developer on reassembling the land necessary to continue with the
approved preliminary plat for future residential development:
• The 5 parcels under the ownership of the developer, David Evanson, which he is offering
to the EDA for $210,000:
PID # 36- 119 -21 -12 -0031 35,600 sq.ft.
36- 119 -21 -12 -0033 88,062 sq.ft.
36- 119 -21 -12 -0038 82,597 sq.ft
36- 119 -21 -21 -0118 36,883 sq.ft.
36- 119 -21 -21 -0125 3,863 sq.ft
247,005 sq.ft. or 5.67 acres
The supplemental information provided by Mr. Evanson includes a request that the City
pay some portion of the back real estate taxes due to Hennepin County. The request does
not include an amount.
• A vacant parcel owned by Rod Construction, Inc (Roderick and Deborah Tauer) which is
being offered to the EDA for $40,000:
•
PID # 36-119-2121-0106 33,825 sq.ft.
In addition to the sales price of $40,000 the owners are requesting forgiveness of
delinquent Property Taxes. The request also did not include an amount.
• A property exchange with Walt and Sandra Wenholz residential homestead, 501 69
Ave. N.
PID # 36- 119 -21 12 -0036 is a 32,040 sq.ft. residential homestead.
The proposed exchange involves the southerly 85 feet of this existing homestead.
The exchanged negotiated by the developer included the conveyance of the proposed
adjoining lot to the east (Lot 10, Block 1) and the construction of the proposed street at
no cost to the property owner in lieu of the conveyance of the southerly 85 feet of lot lot
depth. This 7,650 sq.ft is necessary to facilitate the proposed extension of 68 th Lane
North,
The Wenholx's letter also references property line adjustments to their lot and that any
city assessment for any road or other situations that would be adjacent to the
swapped/exchanged property would be the responsibility of the developer.
Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust
EDA ITEM MEMORANDUM
The proposed land exchange is not part of the proposed EDA acquisitions and will
• require further negotiations with the property owner at a future date or a redesign that
does not include their ro ert art of the subdivision.
p P Y as P
A property exchange and land purchase with Outreach Six Acres, Inc., a group home for
developmentally disabled, at 507 69 Ave. N.
PID # 36- 119 -21 12 -0037 is a 31,684 sq.ft. residential lot
The exchange involved additional land to increase their western side yard setback and
purchase of the southern 216' of their lot. The developer indicated that a land price had
previously been agreed to be approximately $18,000. At this time, he owner has chosen
not to submit a letter of intent to proceed with the previous agreement.
This proposed land exchange and sales is not part of the proposed EDA acquisitions and
will require further negotiations with the property owner at a future date or a redesign
that does not include their ro ert as art of the subdivision.
p p Y P
Proposal/Sales Offer:
Attached is the proposed offer and supplemental information for Eastbrook Estates 2"d Addition
submitted by David Evanson to convey his 5 parcels to the EDA for the cash price of $210,000.
. Additionally, Rod Construction offer to consider the sales of his parcel for the cash price of
$40,000.
Both sales offers include an undisclosed amount of consideration or forgiveness to delinquent
real estate taxes.
We have explained to the developer that the City is not in the position to offer forgiveness to
property taxes owed to Hennepin County and that it has been the practice of the City that the
owner is responsible for providing clean marketable title to the property, which includes
satisfactions for any outstanding liens, mortgages, and taxes.
It is our recommendation that the City Attorney be authorized to prepare typical purchase
agreements which includes the provisions that the current year's taxes are prorated to the buyer
and seller based on the closing date.
Attached for your consideration is a resolution which authorizes the City Attorney to proceed
with purchase agreements to acquire the 5 parcels from David Evanson and 1 parcel from Rod
Construction.
Budget Issues:
The acquisition of these 5 parcels of land from David Evanson at $210,000 and the parcel from
• Rod Construction at $40,000 are proposed to be funded through the TIF 3 Housing Fund.
Mission: Ensuring an attractive, clean, safe community that enhances the quality of life anal preserves the public trust
EDA ITEM MEMORANDUM
The acquisition of this property would preserve the creation of approximately 20 single family •
lots for future residential development based on the approved preliminary plat. As noted, future
negotiations with the two existing lot owners will be required to proceed with this subdivision as
it is currently planned.
The balance of the TIF 3 Housing Fund, as reported in June was $1,818,219 with approximately
$1,300,000 available for new housing initiative.
A condition of the special legislation which created Tax Increment Financing District No. 3 was
that 15% of the annual increment was required to be allocated to a Housing Fund for eligible
affordable housing activities. The 2011 TIF Housing Fund allocation are projected to be
$250,697 with the 2012 allocations increasing to $355,004 with the removal of the Brookdale
parcels form TIF District 3.
Council Goals:
Strategic:
3. We will stabilize and improve residential neighborhoods
Ongoing:
5. We will improve the image of the City with citizens and those outside of the City's
borders
•
•
Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust
EDA ITEM MEMORANDUM
April 11, 2011, City Council Minutes
DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS
OPPORTUNITY TO ACQUIRE 5.7 ACRES
FOR FUTURE HOUSING OPPORTUNITIES
(PORTIONS OF PHASE II EASTBROOK ESTATES)
Director of Business and Development Gary Eitel presented the offer by David Evanson,"
owner /developer of Eastbrook Estates, to acquire 5.7 acres of land that was assembled as part of
the single- family subdivision of Eastbrook Estates. He noted that on January 26, 2004, the
Council granted preliminary plat approval to the subdivision known as Eastbrook Estates 2"
Addition of approximately 8.75 acres into 29 single- family lots. This development was
envisioned to provide new home construction opportunities and _part of the development went
forward. However, the downturn in the housing market and development costs stopped the
project from completion. He displayed a map depicting the subject site and several examples of
projects that involved assembling of several sites.
Mr. Eitel advised there are sufficient funds in Tax Increment Financing No. 3 Housing Fund and
read the Council policy issues`
1. Does the City Council believe that it is in the community's best interest to reserve this
• land to maximize future housing redevelopment opportunities for the community?
2. Does the City Council support the prioritizing of the use of TIF No. 3 Housing Funds for
this acquisition?
Mayor Willson asked about the ownership of two occupied parcels within the subject site. Mr.
Eitel advised one is a single- family home and the other a group home. A third parcel, 75 feet in
width, is owned by another developer. Mayor Willson asked staff to determine the status of that
parcel.
Councilmember Kleven expressed concern that the parcels do not have access to Highway 252
from 69t Avenue and there would be additional costs to prepare the site for development
including costs to remove trees, install utilities, and streets.
Councilmember Roche stated this is only two- thirds of the opportunity because the other one-
third comprises the two parcels to the north of 69 Avenue N. that opens to 70 Avenue N. He
explained that land was the original farm, could offer a top-of-the-line organic community
garden with parking on 69 Avenue N., so he supported expanding the discussion to include'
those two parcels north of 69 Avenue N. comprising 2.6 acres.
Councilmember Ryan stated the City has an opportunity to purchase the property at a significant
discount. He asked, if the Council determines to move forward with the purchase and hold the
property for a period of time until the economy recovers, could it be sold at a profit. Mr.
Boganey stated in theory, when the market improves, that could be the case but there is no
Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust
EDA ITEM MEMORANDUM
promise of a profit. Councilmember Ryan asked about the taxes paid by this property. Mr. Eitel
stated he believed taxes were minimal and he would obtain that information for the Council's •
consideration at the Work Session.
Councilmember Kleven asked who pays for development costs if the land is sold. Mr. Boganey
stated in a strong market the developer would cover those costs, expecting to recover the costs
through the lot sales. Councilmember Kleven noted permission would be needed to install a
roadway, which would involve an additional cost. Mr. Eitel explained the property would have
to be assembled, right -of -way dedicated for streets and utility easements, and the developer
would probably develop a different plan that includes a more efficient street design.
Mayor Willson stated he has no qualms with talking about purchasing this land because the City
could assemble the parcels for a higher and best use. He indicated he would look for the City to
develop the property to increase the tax base, not sell it to make a profit.
OPPORTUNITY TO ACQUIRE 5.7 ACRES FOR FUTURE HOUSING
OPPORTUNITIES - CONTINUED
(PORTIONS OF PHASE II EASTBROOK ESTATES)
Director of Business and Development Gary Eitel used a map to identify the property under
discussion and reviewed the Council's past action to grant preliminary plat approval to the
subdivision known as Eastbrook Estates 2 nd Addition of approximately 8.75 acres into 29 single-
family lots. These five properties of 5.77 acres are under one ownership with 2011 estimated
market value of approximately $499,800. The taxes paid are based on assessed valuation and the •
City's portion is approximately $2,500. Mr. Eitel stated the owner is providing an opportunity
and asked if the City Council/EDA wanted to purchase and hold this property in the interest of
the community. It was noted the acquisition of this property would be an eligible expense from
Tax Increment Financing (TIF) District No. 3 that currently has a balance of approximately $1.8
million and projected to receive annual revenues of approximately $350,000 through the
remaining life of this District.
The City Council/EDA discussed this opportunity and concern was expressed about the cost to
remove trees, install streets, and utilities, to prepare the property for development. In an effort to
assure the property is not underutilized, the City Council/EDA indicated its support to acquire
the 5:7 acres with the staff negotiating an attractive price, to be funded from TIF District No. 3.
The City Council/EDA also asked staff to determine the status of two vacant contiguous parcels.
Councilmember /Commissioner Roche advocated for also purchasing two vacant parcels north of
69t Avenue N. Mayor/President Willson suggested he contact that property owner to determine
their interest in approaching the City.
The majority consensus of the City Council/EDA was to direct staff to proceed.
Mission: Ensuring an attractive, clean, safe community that enhances lite quality of life anti preserves the public trust
EDA
Preliminary Plat of Eastbrook Estates 2 ,d Addition
69TH AVE N
421
t
>
419
RTH AVE N
6 !21
X 6/25 E/46
22til
LEGEND
Evanson Properties
Rod Construction Property
Outreach Six Acres Group Home Property
Wenholz Property
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EDA
Preliminary Plat of Eastbrook Estates 2nd Addition
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LEGEND
® Evanson Properties
® Rod Construction Property
® Outreach Six Acres Group Home Property
Wenholz Property
•
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r - SHE 7 2 or 2 SHEETS .
David G. Evanson
7206 Camden Avenue North #210
Brooklyn Center, MN 55430
612- 325 -2438
July 6, 2011
Mr. Gary Eitel
Business and Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Gary:
This letter is to request that inclusion of the sale of the parcels in Eastbrook Estates 2 ° a Addition
in the Brooklyn Center City Council meeting scheduled for June 27, 2011.
The five individual parcels are:
1. 419 69th Ave N., PIN #36- 119 -21 -12 -0033
2. 421 69 Ave N., PIN #36- 119 -21 -12 -0031
• 3. no address' assigned), ( gne ), PIN #36 - 119 -21 -12 -0038
4. (no address assigned), PIN #36- 119 -21 -21 -0118
5. (no address assigned), PIN #36- 119 -21 -21 -0125
This purchase is for the cash price of $210,000.00. Closing would take place as soon as all
necessary title work is completed.
Please feel free to contact me for any other questions or information.
Sincer
David G. Evanson
•
From: David G. Evanson
To: Gary Eitel
SUPPLEMENTAL INFORMATION FOR EASTBROOK ESTATES 2nd ADDITION
1. Donna Armstrong, the owner of the property at 701 69 Ave N., had indicated previously
some interest in selling her property, but has decided to remain (for the time being), as the
owner.
2. Rod Tauer, the owner of the parcel (PIN #36- 119- 21 -21- 0106), has indicated that he is
willing to sell his parcel to the EDA. A letter indicating this intent is included.
3. Walt & Sandra Wenholz, the owners of the parcel at 501 69 Ave N. (PIN #36- 119 -21 -12
0036), have indicated that they are willing to do a cashless exchange of land area for a lot (the
future Lot 10, Block 1, Eastbrook Estates 2 nd Addition), to the east of their present home. A
letter indicating this intent is included.
4. Outreach Group Homes, Inc., the owner of the parcel at 507 69th Ave N. (PIN #36- 119- 21 -12-
0037), have previously indicated that they are willing to sell the southern portion of their
property, and also purchase an additional strip of land to add to their western property line. At
this time they have indicated that they are not interested in completing this transaction ; however,
it is my believe that at such time as Eastbrook Estates 2 nd addition would have a final platting •
that they would be interested in cooperating.
5. Additionally, I would request that the City pay some portion of the back real estate taxes due
to Hennepin County. I realize the City's willingness to do so may be limited; however, it may
be essential to work out something regarding this.
6. Also, I will cooperate in any way possible to facilitate the sale and future development of
any /all of these parcels, including contacts and follow -up.
7. If the City itself decides to act as the Developer in the future, I can help advise regarding the
myriad of land/survey /title issues that may exist.
Please feel free to contact me for any other questions or information.
•
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April 20, 2011 •
Mr. Gary Eitel
EDA Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
RE: 501 69 Ave. No. (plot 28) and deed swap
Dean IS& Eitel,
This letter is to acknowledge the city's plans of buying Eastbrook Estates 2nd
Addition from David Evanson for a landbank;area.
We do accept the city plan with these modifications:
1. Honor our original agreement with 1&. Evanson
stating that we would swap the south end of our
property (about ft. ) and three feet of the west
side beginning approximately 10 ft. south of our •
pond to the south end of our property, for the front
of plot 27, immediately east of our property (an area
that is ft. by ft. This, essentially, would be a
cashless swap.
2. It is also understood that we will not be responsible
for any city assessments for any road or other situation
that would be adjacent to the swapped south end and
the east or west sides of our property.
Please contact us if you have any other questions. Thank you.
Sincerely,
Walt and Sandra Wenholz
763 -561 -1598
Cell: 763-370-2435 •
Hennepin County Property Map Print Page 1 of 1
3 Hennepin County Property Map - Tax Year: 2011
I The data contained on this page is derived from a compilation of records and maps and may contain discrepancies that can only be disclosed b an accurate surv ji
land surveyor. The perimeter and area (square footag and acres area Y y performed by a licensed :
�. (q g ) approximates and may contain discrepancies. The information on this page should be used far reference purposes only.;
i{ Hennepin County does not guarantee the accuracy of material herein contained and Is not responsible for any misuse or misrepresentation of this Information or Its derivatives.
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Selected Parcel Data Date Printed: 6/22/2011 2:36:14 PM
i Parcel ID: 36- 119 -21 -21 -0105 Current Parcel Date: 6/7/2011
Owner Name: DONNA 3 ARMSTRONG
( Parcel Address: 701 69TH AVE N, BROOKLYN CENTER, MN 55430
{
Property
I� f T ype: RESIDENTIAL Sale Price: $37,000.00
Homestead: HOMESTEAD Sale Date: 05/1978
I Area (sgft): 10502 Sale Code:
Area (acres): 0.24
• I{
A -T -B: ABSTRACT
1 1 � Market Total: $108,800.00
Tax Total: $1,543.06
4
http: / /gis.co. hennepin. mn .us /HCPropertyMap /Locator.aspx 6/22/2011
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MEMORANDUM COUNCIL WORK SESSION
i
DATE: April 5, 2011
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business and Development
SUBJECT: Opportunity to Acquire 5.7 acres for future housing opportunities (portions of
Phase H. Eastbrook Estates)
Recommendation:
It is recommended that the City Council consider the offer by David Evanson, the
owner /developer of Eastbrook Estates, to acquire 5.7 acres of land that was assembled as part of
the single family subdivision of Eastbrook Estates.
Background:
On January 26, 2004, the City Council granted preliminary plat approval to the subdivision
known as Eastbrook Estates 2" Addition, the subdivision of approximately 8.75 acres into 29
single family lots.
This application involved an assembling of six existing lots under multiple ownership, two
outlots, and surplus unplatted MnDOT right of way adjoining Hwy 252. The redevelopment of
this property into a new single family subdivision was envisioned to provide new home
construction opportunities similar to the Bellvue Neighborhood project; however, the down turn
in the housing market and development costs of the project have stopped the developer /owner
from moving forward with the project.
Attached is a copy of Mr. Evanson's proposed sales offer and copies of the preliminary plat and
parcel map which identifies the properties being offered for sale.
Assessed Market Values:
PID # 36- 119 -21 -12 -0031 35,600 sq.R. $ 80,000
36- 119 -21 -12 -0033 88,062 sq.ft. 1162,200
36- 119 -21 -12 -0038 82,597 sq.R. $167,600
36- 119 -21 -21 -0118 36,883 sq.ft. $ 80,000
36- 119 -21 -21 -0125 3,863 sq.ft. $ 10,000
Total 2011 estimated market value . $499,800
Redevelopment Opportunities:
Mission: Ensuring an a tractive, clean, safe community that enhances the qualify of life and preserves the Public trust
i
MEMORANDUM - COUNCIL WORK SESSION
Examples of two housing projects that the City/EDA has previously participated in the land
assemblage include the Bellvue Subdivision in the Southeast corner of the city and the Estates of
Riverwood, in the Southeast uadrant of Hwy 252 and 66 Avenue.
q
It is the opinion of staff the similar housing opportunities could be available to the community, if
the land is available when the housing market recovers from the current recession.
Council Policy Issues:
1. Does the City Council believe that it is in the community's best interest to reserve this
land to maximize future housing redevelapment opportunities for the community?
2. Does the City Council support the prioritizing of the use of TIF #3 Housing Funds for
this acquisition?
If it is the consensus of the Council that it is in the community's best interest to reserve land to
maximize future housing redevelopment opportunities and to prioritize the use of TIF #3 Funds
for such acquisitions, then it is recommended that the Council direct staff to negotiate the best
acquisition price for consideration by the Council at an Executive Session.
Budget Issues:
The acquisition of this property would be an eligible expense from the TIF 3 Housing Fund The
TIF 3 Housing Fund currently has a balance of approximately $1.8 M and is projected to receive
annual revenues of approximately $350,000+ through remaining life of this Tax Increment
District/2021.
Council Goals:
Strategic.
3. We will stabilize and improve residential neighborhoods
Ongoing:
5. We will improve the image of the City with citizens and others
Mission: Ensuring an attractive, clean, safe communhy that enhances the quality. of t fe and preserves the public trust
Mr. Gary Eitel
Business & Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
3/21/2011
Gary.
i
Pursuant to our discussions, I am offering, and wish to complete a successful We and closing, of
the five parcels I own in the preliminary plat known as Eastbrook Estates 2nd Addition.
They are:
1. 36-119-21-12-0033
419 69th Ave N
2. 36- 119 -21 -12 -0031
421 69th Ave N
3. 36- 119 -21 -12 -0038
(no address) Auditor's Subdivision No. 310
4. 36- 119- 21 -21- 0118
(no address) Ditzler Outlot
5. 36- 119 -21 -21 -0125
(no address) Eastbrook Estates Outlot
These five parcels, purchased together, give the City a unique opportunity. By this acquisition,
at a deeply discounted price, the City will control much of a site for future development.
I am offering this to the City for a cash price of $210,000. Price would be apportioned on a per
square foot basis.'
This is because existing market circumstances preclude me from the completion of the site. I
would then be forced to sell the parcels piecemeal, and the land would be greatly underutilized,
then having an adverse effect on future City tax revenues.
V Evansonf '
720 69th Ave N
Brooklyn Center, MN 55430
,
EASTBROOK ESTATES 2ND ADDITION
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36- 119 -21 -12 -0033 88,062 sq.ft. $162,200
36- 119 -21 -12 -0038 82,597 sq.ft. $167,600
36-119-21-21-0118 36,883 sq.ft. $ 80,000
36-119-21-21-0125 3,863 soft $ 10,000
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Commissioner introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ACQUISITION OF SIX
UNDEVELOPED PARCELS WITHIN THE PRELIMINARY PLAT OF
EASTBROOK ESTATES 2ND ADDITION TO PRESERVE FUTURE
RESIDENTIAL HOUSING OPPORTUNITIES.
WHEREAS, the Brooklyn Center Economic Development Authority, Minnesota
has hereto established Housing Development and Redevelopment Project No. 1, and has
established the Tax Increment Financing District No. 3 and adopted a Tax Increment Financingn
Plan which includes the following objectives:
• To enhance the tax base of the City
• To provide maximum opportunity, consistent with the needs of the City,
for development by private enterprise
• To better utilize vacant or underdeveloped land
• To attract new businesses
• To acquire blighted or deteriorated residential property for rehabilitation
or clearance and redevelopment
• To develop housing opportunities for market segments underserved by the
City including housing for the disabled and elderly; and
WHEREAS,the Tax Increment Financing Plan for Tax Increment District No. 3
includes a budget of $5,000,000 in the Housing Development Account (Affordable Housing)
which includes the following components:
• Acquisition of Single and Multi-Family Housing
• Rehabilitation of Single and Multi-Family Housing
• Environmental Remediation of Single and Multi-Family Housing
Properties, and;
WHEREAS, on January 26, 2004 the City Council granted preliminary plat
approval to the subdivision of approximately 8.75 acres into 29 single family residential lots; and
WHEREAS, the property owners of the 6 vacant parcels of land contained within
this subdivision, comprising approximately 6.44 acres, are proposing a voluntary sales to the
EDA; and
WHEREAS, on April 11, 2011, the consensus of the City Council was to support
pursuing the acquisition of these parcels in an effort to assure that property is not underutilized;
and
WHEREAS, David Evanson is willing to sell 5 parcels, comprising approximately
5.7 acres in area, as identified by the following Hennepin County Property Identification systems
as PID # 36-119-21-12-0003, 36-119-21-12-0033, 36-119-21-21-0188, 36-119-21-12-0118, and
36-119-21-21-0125 for the amount of$210,000; and
WHEREAS, Rod Construction Inc. is willing to sell a 33,825 sq.ft. vacant lot,
identified as PID 36-119-21-0106 for the amount of$40,000; and
WHEREAS, the property owners are proposing the sales of these parcels at a
reduction of 50%or more of the City's assessed valuation.
NOW THEREFORE BE IT RESOLVED by the Economic .Development
Authority in and for the City of Brooklyn Center, Minnesota, as follows:
1. That the City Attorney is authorized to prepare purchase agreements for the
acquisition of the above identified properties..
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.
Resolution Authorizing the Acquisition of Six
Undeveloped Parcels Within the Preliminary
Plat of Eastbrook Estates 2nd Addition
City Council EDA Meeting
AuffuSt 8, 2011
Agenda Item No 4-b
ys
Background
�
WTBROOX ESTATES 2" ADDITION
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------= --- - - _ t _ Ir DEC 2 4 2003
'I I -VIV ? I .:s-.a
Cfly_QE MQQ.KL YNCE1xTE
C.
January 26, 2004, the City Council granted preliminary plat approval to the subdivision of Eastbrook
Estates 2nd Addition, the subdivision of approximately 8.175 acres into 29 single family residential lots.
Location Map
72RD AVER
w
i C3 ry Riverdale Park
� 1Evergreen Park > ❑ _ ❑
I
Eastbrook Estate
25
_
01
70TH included the
70TH AVE N
r
assemblage of 8
parcels, which are
m
N N
>
EMERSON L14 ❑ - , 'I, Q under ownership
o
of the developer
99TH AVE N _ and three other
x d e property owners.
i
>` 36
GSTH AVE N
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;1 =
Nyaam-Ar MS.C SMOOISOS RIS I ,,..,._,_ ._.................... .............> ., < 3`. I ,3 £ _,...._
Background
EASTBROOK ESTATES 2ND ADDITION
----------- - ----- -- ---
f 9T11 AVF,�6'E NORTH
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,. .°j.• , ' 68TH '� ZANE NORr/'H
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.AVENUES 58938 fI w. ;n 68TH AVE3'4/f' ;NORTH
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IJ MIDWEST
I � �� I -e, r„4^.,,, I —— '.Land SurveYOrs k Clvll Endineen.Inc.
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Proposed Final Plat of Eastbrook Estates 2nd Addition — application for Final Plat never pursued
Background
On April 11, 2011, the City Council discussed the following policy issues
related to a proposal by David Evanson to sell the EDA 5 parcels of land,
comprising 5.7 acres in area, which collectively are a significant portion of
the Preliminary Plat of Eastbrook Estates 2nd Addition:
1) Does the City Council believe that it is in the community's best
interest to reserve this land to maximize future housing
redevelopment opportunities for the community?
2) Does the City Council support the prioritizing of the use of TIF #3
Housing Funds for this acquisition?
In an effort to assure the property is not underutilized, the consensus of the
City Council/EDA, was to support the acquisition of the 5.7 acres and
directed staff to negotiate an attractive price, to be funded from TIF District
No. 3.
The City Council/EDA also asked staff to determine the status of any
remaining parcels that were part of the preliminary plat.
eg'0
in
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Yom'
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6W LEGEND
ud.y Evanson Properties
- Rod Construction Property
5 Outreach Six Acres Group Home Property
Wenholz Property
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eaTM nue u
6M 9Y 5>aa 8734 .�
02 7 2 R .
art+ 67tY
i � � � 6170 a' •
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This exhibit illustrates the location and ownership of these parcels with the following information provided
by the developer on reassembling the land necessary to continue with the approved preliminary plat for
future residential development
410
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.. __. ,AVE to -.._.
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i
76r $
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4831 LEGEND
746 ru `
U
1 Evanson Properties
i
-660 Rod Construction Property
i, Outreach Six Acres Group Home Property
' Wenholz Property
0
a�
SFI.}7 S 61166
36
rn
m
6Wt S6M p
a
68TH AVE N ""'
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EASTBROOK ESTATES 2ND ADDITION
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69711 AYF.NUE- NORTH
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M 66TH AVENUE R NORTH
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SDy ,y 03 RAVC1r, R Si9'S!f'1Y' R y
5!y Jl1r r w - R
"All Rod Construction Parcel
"Bll Outreach Six Acres Group Home residential lot
"C11 Wenholz residential homestead
Land Sale Offers to the EDA
❖ David Evanson's five parcels (5 . 67 acres)
$ 210 , 000
❖ Rod Construction's parcel (. 77 acre)
$40, 000
Both offers requested consideration to delinquent taxes owed to Hennepin County
it
Detinquent Taxes
The delinquent tax information from Hennepin County for the parcels
within Eastbrook Estates 2nd Addition:
❑ David Evanson's five parcels have delinquent taxes and penalties
for the period of 2oo8-2010 of $34,831.76
❑ Rod Construction parcel has delinquent taxes for 2010 in the
amount of $1,038.o8
Also, both parties have not paid the 1st Half of the 2011 taxes:
*David Evanson's 2011 taxes, with 1st half penalties = $12,457.68
*Rod Construction's 2011 taxes, with 1st half penalties = $1,903.23
• Standard purchase agreement language requires owner to be
responsible for providing clean marketable title to the property,
which includes satisfactions for any outstanding liens,
mortgages, and taxes
■ Standard purchase agreement language includes the
provisions that the current year's taxes are prorated to the
buyer and seller based on the closing date
Budget Issues
✓ The acquisition of these 5 parcels of land from David
Evanson at $210,000 and the parcel from Rod
Construction at $40,000 are proposed to be funded
through the TIF 3 Housing Fund.
✓ The acquisition of this property would preserve the
creation of approximately 20 single family lots for future
residential development based on the approved
preliminary plat. As noted, future negotiations with the
two existing lot owners will be required to proceed with
this subdivision as it is currently planned.
i
Requested Action
Resolution Authorizing the Acquisition of Six
Undeveloped Parcels Within the Preliminary Plat of
Eastbrook Estates 2nd Addition to Preserve Future
Residential Housing Opportunities.
Council Goats
Strategic:
3. We will stabilize and improve residential neighborhoods
Ongoing:
5 w improve g Y
We ill i rove the image of the City with citizens and those outside of the
City's borders