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Home My WebLink About2011 09-26 EDAP Regular Session EDA MEETING City of Brooklyn Center September 26, 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. September 12, 2011— Regular Session • 4. Commission Consideration Items a. Resolution Authorizing the Acquisition of Property in Connection With the Remove and Rebuild Program (5801 Ewing Avenue North) Requested Council Action: Motion to approve resolution. 5. Adjournment i EDA Agenda Item No. 3a i • 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 SEPTEMBER 12, 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 9:23 p.m. 2. ROLL CALL President Tim Willson and Commissioners Carol Kleven, Kay Lasman, and Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off Site Secretarial, Inc. • 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Lasman seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. August 8, 2011 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2011 -20 APPROVING CONTINUATION OF CERTAIN HOUSING PROGRAMS AND REAUTHORIZING THE USE OF FUNDS FROM TAX INCREMENT DISTRICT NO.3 HOUSING ACCOUNT Director of Business and Development Gary Eitel introduced the item, discussed the history of the ReNew Loan Assistance Program, and stated the purpose of the proposed resolution. He explained this Program provides down payment and closing cost assistance to help increase home ownership and encourage rehabilitation of foreclosed and vacant homes. He indicated that • 92 such loans have closed, three more are scheduled for closing, and one new application has been received. 09/12/11 -1- DRAFT Commissioner Ran moved and Commissioner Lasman seconded adoption of RESOLUTION • Y p NO. 2011 -20 Approving Continuation of Certain Housing Programs and Reauthorizing the Use of Funds from Tax Increment District No. 3 Housing Account. The Commission indicated its support to continue this housing program that has significantly addressed the negative impact of foreclosures in Brooklyn Center. Staff was recognized for its outstanding effort to recognize this option to use Tax Increment Financing to create incentive to purchase vacant homes without impact to the tax levy of existing homeowners. In addition, the program supports the EDA's goal to stabilize neighborhoods, promote home ownership, and protect the City's residential nature. Motion passed unanimously. 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 9:29 p.m. Motion passed unanimously. • 09/12/11 -2- DRAFT • EDA Agenda Item No. 4a • EDA ITEM MEMORANDUM • DATE: September 21, 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Business and Development Director SUBJECT: Resolution Authorizing the Acquisition of Property in Connection With the Remove and Rebuild Program (5801 Ewing Avenue North) Recommendation: It is recommended that the Economic Development Authority (EDA) consider approval /adoption of Resolution Authorizing the Acquisition of Property in Connection With the Remove and Rebuild Program (5801 Ewing Avenue North) Background: On September 12, 2011, the EDA adopted Resolution No. 2011 -20 (Resolution Approving Continuation of Certain Housing Programs and Reauthorizing the Use of Funds from Tax Increment District No. 3 Housing Account). This resolution included the continuation of the Remove and Rebuild Program, a program which enables the acquisition and removal of blighted, distressed and unmarketable foreclosed properties. The goal of the remove and rebuild program • is to return these properties to an enhanced and compatible land use with the surrounding neighborhood and one that is consistent with zoning regulations in the City's Comprehensive Plan. On March 14, 2011, the EDA adopted Resolution No. 2011 -05, a "Resolution Reauthorizing EDA Resolution 2009 -17 Providing Authority to Staff to Acquire Certain Foreclosed Homes Within the City and to Execute all Instruments and Contracts Related Thereto ". A copy of Resolution No. 2011 -05 is included with this memorandum. Proposed Acquisition: The Resolution Proposes to Authorize Acquisition of 5801 Ewing Avenue North at a price of $29,900. The property currently has a tax value of $95,100. The property has an unusual and non- conforming lot configuration with 178 ft. of frontage along Bass Lake Road with a lot width of 75 ft. measured along Ewing Avenue North. The house faces Ewing Avenue North and presents a non - conforming appearance with long narrow lot along Bass Lake Road. Building records indicate the property was built in 1950. It is a slab on grade home with an inferior configuration of rooms in the home's interior. Additionally, information from the City's vacant building inspection report notes that there are structural and foundation deficiencies. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust EDA ITEM MEMORANDUM With regard to the condition and configuration of this home on the lot, it is not a candidate for rehabilitation, and in the opinion of staff, will continue to decline and have an increasing blighting influence on the neighborhood. The resolution before the EDA board proposes to acquire the property at 5801 Ewing Avenue North pursuant to the consultant services agreement with the Greater Metropolitan Housing Corporation (GMHC). In this manner, the home would be purchased at a price of $29, 900, and demolished by GMHC with those costs passed along to the City. The City would take title to the lot from GMHC. Budget Issues: The acquisition and demolition cost of this property will be funded by the Housing Account from Tax Increment District No. 3. The TIF 3 Housing Account currently has approximately $787,500 available for new or ongoing housing initiatives (after the programming of $262,500 for the continuation of the.Renew Loan Program). This Housing Fund is scheduled to receive $250,697 in 2011 (15% of the annual tax increment generated by the District) and is projected to receive approximately $355,000 in 2012. Tax Increment District 3 is a 25 year Redevelopment District that is scheduled to expire in 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 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 • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY IN CONECTION WITH THE REMOVE AND REBUILD PROGRAM 5801 EWING AVENUE NORTH) WHEREAS, on September 12, 2011, the Economic Development Authority Development Authority of Brooklyn Center, Minnesota (the "EDA ") adopted Resolution No. 2011- . 20 approving continuation of certain housing programs and reauthorizing the use of funds from Tax Increment District No. 3 Housing Account; and WHEREAS, one of the housing programs so authorized with EDA Resolution No. 2011 -20 was the EDA's Remove and Rebuild Program (the "Program") to acquire demolished, blighted, distressed, and unmarketable properties to be returned to uses compatible with the neighborhood; and WHEREAS, real property located at 5801 Ewing Avenue North (the "Subject Property") is a vacant and foreclosed residence that was offered for sale for a price of $29,000; and '', • WHEREAS, City staff have inspected this property and determined that the condition of the property qualifies this property for the Remove and Rebuild Program; and WHEREAS, the EDA has determined that acquisition of the Subject Property is consistent with the goals and objectives of the Program and is in the best interests of the City of Brooklyn Center and its residents; and WHEREAS, pursuant to the Consultant Services Agreement with the Greater Metropolitan Housing Corporation (GMHC). GMHC will acquire the Subject Property on behalf of the EDA. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the President and Secretary of the EDA are authorized and directed to execute a purchase agreement with GMHC for the acquisition of the Subject Property in the amount of $29,000, and the Executive Director is authorized and directed to take all such further steps as are necessary to effect the terms thereof. September 26, 2011 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. • • LOGISMap Output Page Page 1 of 1 59TH AVE N Y J I 58 AVE N ? . .......... .......'' 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ServiceName= be _logismap_ovsde &ClientVersio... 9/20/2011 Commissioner carol Kleven introduced the foll owing resolution and moved its adoption: EDA RESOLUTION NO. 2011 -05 RESOLUTION REAUTHORIZING EDA RESOLUTION 2009 -17 PROVIDING AUTHORITY TO STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO WHEREAS, Economic Development Authority (EDA) Resolution 2009 -17 established certain standards and conditions which authorized EDA staff to acquire certain foreclosed homes; and WHEREAS, the EDA Board wishes to continue the standards and conditions established by Resolution 2009 -17 for the acquisition of foreclosed homes. . NOW THEREFORE, BE IT RESOLVED. by the Economic Development Authority of Brooklyn Center, Minnesota: 1. That the Executive Director, with the assistance of EDA's legal counsel, is hereby authorized to.enter into purchase agreements and acquire in the name of the EDA up to ten (10) single family, vacant, foreclosed homes (the "Properties ") on the conditions that: a.. All. properties. are registered as vacant properties with the. City of Brooklyn Center; and b. The Properties are each acquired with Neighborhood Stabilization Program Stabilization Program. ( 'NSP') Funds or TIF Funds, and are eligibles for use of such funding; and C. Each property is a foreclosed property acquired from, a lender or a lender's designee; and d. The Properties have been vacant for at least 3,0 days prior to entering into a purchase agreement; and e.. The Property is determined to be blighted as defined by the Minnesota Housing Finance Agency in its application to the US Department of Housing and Urban Development (HUD) for NSP funding as follows: A blighted structure is one which,.by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light, and sanitary facilities,_ excessive land coverage, deleterious land use, or obsolete layout, or any combination of these or other factors, is.detrimental to the safety, health, morals, or welfare of the community: and i EDA RESOLUTION NO. 2011 -05 f. The purchase . of more than 65 Percent of Henn in County's i p e pace is n re p ep ty latest Estimated Market Value for the Property and does not exceed $80,000; and ! g. Prior to the acquisition of each property, staff conducts appropriate due diligence to protect the EDA's interest. 2. That for purposes of this resolution; "single family" includes an property with fewer than three units. 3. That the Executive Director is authorized to execute such documents as shall be required in order to carry out the delegation provided in paragraph I hereof. 4. That the Executive Director shall report the acquisition of any Property i pursuant to this Resolution at the next regular EDA meeting. . 5. That disposition of acquired Properties shall be only by action of the EDA. 6. That the authority to enter into new purchase agreements granted hereby shall expire twelve (12) months from the date of this Resolution. y� o March 14, 2011 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Tim and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Carol Kleven, and Tim Roche; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. i i Acquisition of 5801 Ewing Avenue North EDA Agenda Item No. 4 September 26 , 2011 i ALI- $ r ` rr Fie ..,t �� ri� F I r ,. , �. S y 4 E1 1 !�� y Subject Site I 1 t '� .# oll g y j� ,■» +.j. ..^ r A A Pik } tiz�a Y , Y � r v Subject ect Site - I , x t. W . t3"t y r 14A is r , ri A' m, :mft)07,w* ° ° e 7».i•a...........Lam. :•�„ „g.o,�,.r.>.�.,a,�,l� p Property Information • Built in 1950 - slab on grade home with an inferior configuration of rooms in the home's interior • House faces Ewing Avenue, w/ 178 ft. of frontage along Bass li Lake Road and width of 75 ft. along Ewing Avenue North I, • City's vacant building inspection report notes that there are number of structural and foundation deficiencies �o r, 9,10"Mil lop 7,771 7 -ism Imi, • � i M Subject � lee, Ll Looking d ♦� /T _. .� 1r. 1 v. Eastward down Bass Lake • y 1 ati i I4r - � .�� .t L♦ - .y � .� •1 it • r. 1 I! �- Y - �' 'r� � � � ,'`.. M ` !t� '� � it ' � ti •�• ski" • �- '' i'�`' ter`` y _ x'. ,,, W �\ f I 11 i v roewyrr„pp, �. � row...... -r Oil �,�`„` • k a r. n r • C Lr, r , f •a� ION A ate'• � � . ` ,n��.r . �t ° ' ^,.� r e. •> s}•stka. fir. �i yam? �+R v j 1 Looking Northeasterly • Bass Lake Road • - - • ointersectins Budget Issues • The Resolution Proposes to Authorize Acquisition of 5 801 Ewing Avenue North at a price of $29,900 (property currently has a tax value of $95, 100). • The acquisition and demolition cost of this property will be funded by the Housing Account from Tax Increment District No. 3. • The TIF 3 Housing Account currently has approximately $787,500 available for new or ongoing housing initiatives (after the programming of $262,500 for the continuation of the Renew Loan Program). • This Housing Fund is scheduled to receive $250,697 in 2011 (15% of the annual tax increment generated by the District) and is projected to receive approximately pp ately $3 5 5,000 in 2012. • Tax Increment District 3 is a 25 year Redevelopment District that is scheduled to expire in 2021 Recommendation • It is recommended that the Economic Development Authority (EDA) consider approval/adoption of Resolution Authorizing the Acquisition of Property in Connection With the Remove and Rebuild Program (5801 Ewing Avenue North)