Loading...
HomeMy WebLinkAbout2011 10-24 EDAP Regular Session EDA MEETING City of Brooklyn Center October 24, 2011 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell p hones 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. October 10, 2011 —Regular Session 4. Commission Consideration Items a. Consideration of Grant Applications for Environmental Investigation and Preparation of a Development Response Action Plan for the Life Time Fitness Site Located at 4001 Lakebreeze Avenue (Former Northwest Racquet Club Site) 1. Resolution Authorizing he Submission of a Grant Application to the g pP Metropolitan Council for the Tax Base Revitalization Account (Former Northwest Racquet Club Site, 4001 Lakebreeze Ave) Requested Council Action: Motion to approve resolution. 2. Resolution Authorizing the Economic Development Authority of Brooklyn Center, Minnesota to Apply for a Contamination Cleanup Grant from the Minnesota Department of Employment and Economic Development (Former Northwest Racquet Club Site, 4001 Lakebreeze Ave) Requested Council Action: — Motion to approve resolution. 5. Adjournment EDA Agenda Item No. 3a i 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 OCTOBER 10, 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 7:33 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 Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, 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. September 26, 2011 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2011 -22 APPROVING THE TERMINATION OF THE CEMENT POND/FOUNTAIN EASEMENT AND PROVIDING FOR THE DEDICATION OF A NEW TRAIL EASEMENT (EDA — WINGS FINANCIAL, 6160 SUMMIT DRIVE) Executive Director Curt Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. 10/10/11 -1- DRAFT Director of Business and Development Gary Eitel reviewed staff's work with Wings Financial to resolve issues with the pond constructed in 1986. He displayed a picture of the subject site and identified the location of the cement pond that was constructed half on the building site and half on the EDA -owned property. Mr. Eitel reviewed the background of the development and ownership of this site. A series of pictures were displayed that identified the adjacent properties, property lines, location of trails, and cement pond that would be removed as part of this project and allow connection of the trails. He reviewed improvements proposed to occur in 2012 including trail construction, trail lighting, and a lighted fountain within the pond that would create a dynamic entry to the Embassy Suites and EDA -owned property. Mr. Eitel explained the resolution under consideration would authorize the President and Executive Director to engage the termination agreement, trail easement, and demolition of the site. Staff also recommends the installation of a new storm sewer overflow. The EDA considered potential costs, if approved and included the larger sized fountain, would range from $35,000 to 40,000. Mr. Boganey clarified that recommended action tonight would not commit the EDA to any of the additional expenses, only to the easement and termination of the agreement. The EDA acknowledged that in Phase 2 the EDA's objective is to find a developer for this site, potentially for another hotel. Mr. Boganey affirmed the EDA's objective is to promote redevelopment of this site and there is full flexibility by the EDA as it relates to the use. It was noted the City Council had previously approved a hotel for this site; however, the EDA now owns the site. Commissioner Lasman moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2011 -22 Approving the Termination of the Cement Pond/Fountain Easement and Providing for the Acceptance of a New Trail Easement (EDA — Wings Financial, 6160 Summit Drive) Commissioner Kleven asked whether Wings Financial will pay 100% of the cost to remove the fountain and restore of the site. Mr. Eitel answered in the affirmative. Motion passed unanimously. 4b. CONSIDERATION OF APPROVAL OF GRANT APPLICATIONS FOR CONTAMINATION CLEANUP OF THE FORMER HOWE CHEMICAL SITE LOCATED AT 4821 XERXES AVENUE NORTH IN BROOKLYN CENTER } Mr. Eitel introduced the item to approve three resolutions to apply for grant funding to assist with the cleanup of 4821 Xerxes Avenue North, the former Howe Chemical site, by Real Estate Recycling. He advised that the property owner now has a Development Response Action Plan approved by the Minnesota Pollution Control Agency and Department of Agriculture. Mr. Eitel displayed site plans of the subject site and reviewed the site history that resulted in the contamination. It was noted that in 2008 the City Council had approved a site plan for development of this property for an office /warehouse building and capping of the parking lot on 10/10/11 -2- DRAFT the west side to correct all soils. He displayed a rendering of the proposed building approved for this site. Mr. Eitel reviewed the remediation/clean up costs for this site, projected at $2,407,000, that would be funded as follows: $1,242,000 from the DEED Contamination Cleanup Grant Program; $200,000 from the Metropolitan Council Tax Base Revitalization Account Program; $700,000 from the Hennepin County Environmental Response Fund and /or EPA Brownfield's Grant Program, and, $265,000 from the developer. 1. RESOLUTION NO. 2011 -23 AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA TO APPLY FOR A CONTAMINATION CLEANUP GRANT FROM THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT Commissioner Lasman moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2011 -23 Authorizing the Economic Development Authority of Brooklyn Center, Minnesota to Apply for a Contamination Cleanup Grant from the Minnesota Department of Employment and Economic Development. Motion passed unanimously. 2. RESOLUTION NO. 2011 -24 AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE METROPOLITAN COUNCIL FOR THE TAX BASE REVITALIZATION ACCOUNT Commissioner Ryan moved and Commissioner Kleven seconded adoption of RESOLUTION NO. 2011 -24 Authorizing the Submission of a Grant Application to the Metropolitan Council for the Tax Base Revitalization Account. Motion passed unanimously. 3. RESOLUTION NO. 2011 -25 APPROVING AN APPLICATION FOR A HENNEPIN COUNTY ENVIRONMENTAL FINANCIAL GRANT Commissioner Kleven moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2011 -25 Approving an Application for a Hennepin County Environmental Financial Grant. Motion passed unanimously. 4c. RESOLUTION NO. 2011 -26 AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILITATE NEIGHBORHOOD IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITIES WITHIN THE BROOKLYN BOULEVARD CORRIDOR (5455 BROOKLYN BOULEVARD) 10/10/11 -3- DRAFT i Mr. Eitel introduced the item, noting the purchase of 5455 Brooklyn Boulevard' had been considered by the City Council at its September 26, 2011, Work Session as part of the reimaging of Brooklyn Boulevard, to address the goal to remove private residences from Brooklyn Boulevard, and to provide redevelopment opportunities. Mr. Eitel presented pictures and described the subject site, a large corner lot, abutting the driveway of the Northport Elementary School and North Memorial Clinic. He advised that as part of the Northport Elementary School renovation, the City will be addressing its access, parking, and image. This purchase would remove a blighted property and allow improvements going forward. Commissioner Lasman moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2011 -26 Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (5455 Brooklyn Boulevard). Motion passed unanimously. 5. ADJOURNMENT Commissioner Ryan moved and Commissioner Lasman seconded adjournment of the Economic Development Authority meeting at 8:07 p.m. Motion passed unanimously. 10 /10 /11 -4- DRAFT EDA Agenda Item No. 4a a EDA ITEM MEMORANDUM DATE: October 24, 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development�� -' SUBJECT: Economic Development Authority Consideration of Grant Applications for Environmental Investigation and Preparation of a Development Response Action Plan for the Life Time Fitness Site Located at 4001 Lake Breeze Avenue (former Northwest Racquet Club Site). Recommendation: It is recommended that the Economic Development Authority of Brooklyn Center, Minnesota (EDA) consider approval of the following resolutions: A. Resolution Authorizing the Economic Development Authority of Brooklyn Center, Minnesota to Apply for a Contamination Cleanup Grant from the Minnesota Department of Employment and Economic Development. (Lifetime Fitness Site) B. Resolution Authorizing the Submission of a Grant Application to the Metropolitan Council for the Tax Base Revitalization Account. (Lifetime Fitness Site) Background: Real Estate Recycling has an option to purchase the Life Time Fitness site, a 7.9 acre commercially zoned site, located at 4001 Lakebreeze Avenue (the former Northwest Racquet Club Site). As part of their initial soils testing and environmental investigations, there has been a discovery of chemicals which exceed the MPCA standards setup for the cleanup of the former Joslyn Site. The Joslyn Cleanup Project and site redevelopment for Phases II (commonly referred to as the Toro Building) and Phase III (commonly referred to as the Caribou Coffee Building) are located on the north side of Lake Breeze Avenue directly north of the site investigations. An initial assumption is that these chemicals were carried onto the site by drainage runoff from a portion of the Joslyn site via a drainage swale which existed prior to the development of the Northwest Racquet Club. Real Estate Recycling, the developer of the Phase I, II, & III of the Joslyn cleanup and industrial redevelopment of this area, are very familiar with the environmental programs and process of developing contaminated sites within the Metro Area and have been advised to seek additional grant funds to undertake the additional soils investigative studies and preparation of a response action plan associated with the potential redevelopment of this property. Similar to the Joslyn and Howe Fertilizer Site cleanup, the EDA is being requested to apply for grant funding to the Metropolitan Council and the Department of Employment and Economic Development for a $75,000 grant to complete this site analysis and MPCA response action plan. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust i EDA ITEM MEMORANDUM A successful application will result in grant funds that will be used to reimburse the developer, Real Estate Recycling, for their contract and consultant costs. Available Contamination Clean Up Grants: The resolutions to be considered by the EDA address the following contamination cleanup grant programs: Department of Employment and Economic Development (DEED) The Minnesota Contamination Cleanup Grant Program was established in 1993 to cleanup contaminated sites and convert contaminated property into a marketable asset. The Department of Employment and Economic Development (DEED) is the administering state agency for the grant program. The DEED grant requires a 25% local match which will be provided by RER, LLC. Metropolitan Council Tax Base Revitalization Account (TBRA) Enacted by the Legislature in 1995, the Metropolitan Livable Communities Act designated the Metropolitan Council as the administrator of the Tax Base Revitalization Program. This program makes grants to cleanup contaminated land for subsequent redevelopment, job retention and job growth in areas that have lost some of their commercial industrial base. No local match is required. Budget Issues: There are no direct budget impacts to consider since RER will provide the local match for the DEED grant and no local match is required for the Metropolitan Council Tax Base Revitalization Account. The indirect budget impact will be staff time necessary to process payment requests to RER's contractors performing grant related work and maintaining the required financial records. Council Goals: Strategic: 2. We will proceed aggressively with implementation of City's redevelopment plans 6. We will encourage citywide environmental sustainability efforts Dlission: Ensuring an attractive, clew {, safe community that enhances the duality of life and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE METROPOLITAN COUNCIL FOR THE TAX BASE REVITALIZATION ACCOUNT (LIFETIME FITNESS SITE) WHEREAS, The City of Brooklyn Center is a participant in the Livable Communities Acts Local Housing Incentives Account Program for 2010 as determined by the Metropolitan Council, and is therefore eligible to make application for funds under the Tax Base Revitalization Account; and WHEREAS, Real Estate Recycling has entered into a purchase agreement to acquire the Lifetime Fitness Site, former Northwest Racquet Club, located at 4001 Lakebreeze Avenue (the Site) and in their initial soil testing and environmental investigation have discovered chemicals which exceed the MPCA standards established for the cleanup of the former Joslyn site which lies north; and WHEREAS, the environmental investigation and development of a development response action plan for the redevelopment of this 7.9 acre site meets the Tax Base Revitalization Account's purpose and criteria; and WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (EDA) has the institutional, managerial and financial capability to insure adequate project and grant administration; and WHEREAS, the EDA certifies that it will comply with all applicable laws and regulations as stated in the contract grant agreements; and WHEREAS, the EDA finds that the required contamination investigation and cleanup will not occur through private or other public investment within the reasonable foreseeable future without Tax Base Revitalization Account grant funding; and WHEREAS, the EDA represents that it has undertaken reasonable and good faith efforts to procure funding for the activities for which Livable Communities Act Tax Base Revitalization Account funding is sought but was not able to find or secure from other sources funding that is necessary for cleanup completion and states that this representation is based on the following reasons and supporting facts: z • No local funds are available to fund the proposed investigation and /or cleanup activities, including General Fund and Special Revenue Funds of the City and /or EDA. • Proposed cleanup activities at the Site do not qualify for Minnesota Petrofund funding. • The Site is not located within an existing Tax Increment District. NOW THEREFORE BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota that it acknowledges it will be the grantee and agrees to act as legal sponsor administer and be responsible for grant funds expended for the project contained in the Tax Base Revitalization grant application submitted on November 1, 2011; and BE IT FURTHER RESOLVED that the EDA Executive Director is hereby authorized to apply to the Metropolitan Council for this funding on behalf of the Economic Development Authority for Brooklyn Center, Minnesota and to execute such agreements as are necessary to implement the Project on behalf of the applicant. October 24, 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. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA TO APPLY FOR A CONTAMINATION CLEANUP GRANT FROM THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (LIFETIME FITNESS SITE) WHEREAS, Real Estate Recycling has entered into a purchase agreement to the acquire the 7.9 acres located at 4001 Lakebreeze Avenue, known as the Lifetime Fitness Site /former Northwest Racquet Club (the Site); and WHEREAS, the initial soil testing and environment investigations have discovered chemicals which exceed the MPCA standards setup for the cleanup for the former Joslyn site which was located north of this property; and WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (EDA) believes it is in the best interest of the City of Brooklyn Center to encourage the environmental cleanup and redevelopment of the Site; and WHEREAS, the EDA desires to facilitate the cleanup and redevelopment of the Site by Real Estate Recyccing; and WHEREAS, the redevelopment of the Site meets the redevelopment objectives of the City's modified redevelopment plan (The "Redevelopment Plan ") for Housing Development and Redevelopment Project No. 1 (The "Redevelopment Project Area ") as adopted on December 19, 1994 by the EDA; and WHEREAS, the EDA has the legal authority to apply for financial assistance, and the institutional, managerial and financial capability to insure adequate project administration. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota as follows: • The EDA approves the contamination cleanup grant application submitted to the Department of Employment and Economic Development on November 1, 2011 by the EDA for the Lifetime Fitness site. • The EDA is authorized to act as the legal sponsor for Project (s) contained in the Contamination Cleanup Grant Program to be submitted on November 1, 2011 and that the EDA Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the EDA. I • The EDA has the legal authority to apply for financial assistance and the institutional, managerial and financial capability to insure adequate project administration. • The sources and amounts of the local match identified in the application are committed to the Project identified. • The EDA has not violated any federal, state or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful corrupt practices. • Upon approval of its application by the State, the EDA may enter into an agreement with the State of Minnesota for the above referenced Project(s) and that the EDA certifies that it will comply with all applicable laws and regulations as stated in all contract agreements. • The EDA Executive Director is hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. October 24, 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. r 4r�ky` s. �. I` Y OT M fZr 7.�w� .°r-. �„aItll .•l' 1 v j ' 7 _ .. '^c � — ,H A � Phase I - -- l � .� e ' ;' - � _. � ,y�'. � r.e � ', -' • ...: y�« (Wagner Spray /Supply Tech.) +'-' a:iI `, f '-•�r �l� y �r'� '�° �" z. .�i4� ^I ?�`° ,• +, R.. t/f{i7��� Qh -A;�'` .. _ q i f, " • . `.n I _ . ". •r t5 d� 4 - '7 ,rq .'a q=tit�,ta ` f ` ,��-� - ,.r„ +•:7� r _. It 7j �, L l�r' •v ,?S''"r�+ �- !. ,. d.r: -t l o � e. � s, _ I . , I.i�; ��?+ � "1. w • u. -; ,fir �� `,a� rt _ ijr , < - a Phase II r , . _ z i ce. � N Y f ff t �� gg 6 y y MI �� To aker F _ _ q� R. I /B urn. � i ,. � r A il f /�y� '� {{ 4 t, 5 j •}r�� � P.R .., 1 , �_' I r . - i ;I a �f B � P .,:^ e Phase III F y t .. � r (Caribou Coffee) , ;. --I "{�' - "�:,t f �' ° ` �. I _� � °« ,�� � �e1�' - - P�T�a a •�i;��9sar r '� r���A ;:r ` , '� � ' t" , � `ti t; c�'I lr, `a ' �N ka l t�s "?'( � ' lldgs�ti�����lai g a )34 r �Y I r . 1 � r r - m .__ �� J ac,.: _ , _ '�•_ t k _I � � .'�•'��..� _ :f�t 1 a, r U l ' , �~ e �'YXe"'F =d`� pr,,g �3 w''�`c,, t -�v r y e �r,l l nn oar r Pareel �� { '(� C "����ti'��. � � ti(r� 'W Cbs�y yy � �F f �g y] �Qj •gy e . , l + `. x���'� b�'i. f �.'ar9. Ff �IN`-� � —�� � • � A; � $ - � t ._ 1 I. A `�. 4 l ip '{ s " �. � M3 p � 5r Former y F PROPERTY INFO — t": 1 mac^ ,trt, a Y` t Northwest Athlatic Club _r AREA: Northwest Athletic Parcel = 7.4 acres I q. MnDOT excess Parcel = 1.27 acres O r ZONING: C-2 Commerce -' <` ' °., ._: L:�r� �f.�.r'�i -� +a ., • _ , — . � _.�.._ _.° "_ +` - �, r�� ADDRESS: 4001 Lakebreeze Avenue North 1 PID: 11- 011- 82 -13 -10 -029 - � 0 q _ _'� _ a `�+ �,.: ,,✓' -r' ,.� OWNER: LTF Real Estate Company, Inc. I 2902 Corporate PI w Chanhasse n MN 55317 0 100 200 400 600 Feet Northwest Athletic Club Redevelopment Site 4001 Lakebreeze Avenue Brooklyn Center EDA Meeting October 24, 2011 Paul Hyde - Real Estate Recycling Development Location M LOGISMap Output Pape - _ j i S10T AVE N 't -Happy— — S19T AV:Y 5'IaT AVE N,,. m Ndl P rk — f z - z .,_-.._------------------NTN AK N� former Ile i f .L. E � mNAVE N - 6 0 LAKE BRE ElE AYE '� Lifetime Fitness Site — — 46T4 AVE N LAKtJILE AVE u q U Yscesticvl:MVS(QY"3�•;C i:WTif�iXUS 0 DT2/1 Toro/ Baker Furniture a a . • Or - Caribou Coffee HQ. � - * [ t MEW n > � � d ff E 1 � � a excess MnDO i r:-u-vv E (to be added) LAKE:SIDEAVt,4 ., 4.� fmr. Lifetime Fitness 19 "9A MEN IV • e +l` 7 TT x ` . r a - F �j •44 air_ h ttt a yyc �! e f, v rte- , 7 � • K. i . �+44 � °' *� � � `t -.+��qty # m "f � �^•��` �,° , 4, d s _ f a r �w i �49i? K �K?11:' i4.` Kr48' rd. . K. L•a� .v 8 >. 2Oo6 Aerial i �� � P!ff7 P R• i Of IPF fe! •Y t ff' fool ff 'P'j f For 1 flll F 2Oog Aerial t ; -- sip • -- I � • • f° v ,;r a itsk- fmfQ f �ref r 'r r — r yr v _ HF I ve Site demo'd in 2008 mss'' �,,•-' ,� _ -- ,. . 50 r L ^Phase t'NNre-Spray Sutply Tech r , i Baker F u^� Phase l !:. d M` (7ora Phase! 9 MMIF AW IL -- -Y x 100 • r,q 1!t p' PROPERTY INfO AREA:Northwest Athletic Parcel= 7.4 acres MnDOT(excess)Parcel=1.27 acres LAKESIDE A N � .� ° ; , r� ZONING:c•z commerce > ---.� ADDRESS: 4001 Lakebreeze Avenue North PID:11-01 -82-13-10-029 OWNER: LTF Real Estate Company.Inc. � 2902 Corporate PI r .,� �- •'A Chanhassen,MN 55317 C 1 Dc 4X I— Felt