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HomeMy WebLinkAbout2012 03-26 EDAP Regular Session • EDA MEETING City of Brooklyn Center March 26, 2012 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. February 13, 2012—Regular Session • 4. Commission Consideration Items a. Resolution Authoring the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program(5331 Morgan Avenue) Requested Commission Action: —Motion to adopt resolution. b. Resolution Authoring the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program(5800 Bryant Avenue) Requested Commission Action: —Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a • 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 FEBRUARY 13, 2012 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 10:07 p.m. 2. ROLL CALL President Tim Willson and Commissioners Carol Kleven, Kay Lasman, Lin Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, Director of Community Activities, Recreation and Services Jim Glasoe, 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 Lasman moved and Commissioner Ryan seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. January 9,2012—Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2012-02 OPTING NOT TO WAIVE TORT LIABILITY FOR 2012 Executive Director Curt Boganey introduced the item and stated the purpose of the proposed resolution to not waive tort liability for 2012. Commissioner Ryan moved and Commissioner Lasman seconded adoption of RESOLUTION NO. 2012-02 Opting Not to Waive Tort Liability for 2012. • Motion passed unanimously. 02/13/12 -1- 4b. RESOLUTION NO. 2012-03 AUTHORIZING THIRD AMENDMENT TO THE • FOOD SERVICE MANAGEMENT AGE EMENT WITH FLIK INTERNATIONAL CORP Director of Community Activities, Recreation and Services Jim Glasoe introduced the item, discussed the history, and stated the purpose of the proposed resolution to amend the agreement with Flik International Corp for food service management at the Earle Brown Heritage Center. He advised the agreement includes a reduction by 2% in 2012, 3% in 2013, 4% in 2014, and mutual agreement for years thereafter. Flik has also agreed to provide a $5,000 annual payment as a goodwill signing bonus. Commissioner Ryan noted that as a result of the percentage reductions in food costs, if current charges for food served are retained, a better net on sales can be anticipated. Mr. Glasoe stated that is correct and the figures he quoted from the staff report were based on year-end 2010. Commissioner Lasman stated her support for the amendment since it includes cost reductions and acknowledges the competition factor, making the agreement more palatable. Commissioner Myszkowski asked if the reductions would be passed on to the customers purchasing food. Mr. Glasoe stated that remains to be determined since the dimension of the reduction is not yet known and while it may not be directly passed on to the consumer, could result in not having an increase. Mr. Boganey ex p lained that each year staff goes through a review process of the menus, costs • and charges to customers, and compares that data with competing venues. He explained the City wants to keep costs below competitors, when possible, to generate additional sales while assuring the bottom line margin is sufficient to generate a profit. Commissioner Ryan moved and Commissioner Myszkowski seconded adoption of RESOLUTION NO. 2012-03 Authorizing Third Amendment of the Food Service Management Agreement with Flik International Corp. Motion passed unanimously. 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Kleven seconded adjournment of the Economic Development Authority meeting at 10:17 p.m. Motion passed unanimously. • 02/13/12 -2- • EDA Agenda Item No. 4a • EDA ITEM MEMORANDUM • DATE: March 20, 2012 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business&Developments—• SUBJECT: Resolution Authorizing the Acquisition of Tax Forfeited Property Y in Connection with the Remove and Rebuild Program(5331 Morgan Avenue North) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Authorizing the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program(5331 Morgan Avenue North.) Background: On August 9, 2010, the City Council considered a request from Hennepin County regarding the sale/conveyance of 5331 Morgan Ave. N., a tax forfeited property, located within the City's NSP I Area as a potential candidate for either the City's Remove &Rebuild Program or as a purchase &rehab for resale. The City Council adopted Resolution No. 2010-113, A Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 5331 Morgan Ave. North to the • City of Brooklyn Center by Hennepin County. Attached for your reference is a copy of Resolution No. 2010-113 and related staff memorandum. 5331 Morgan Ave. North: The subject property is a large lot having an area of 15,689 sq.ft. with 115 feet of lot width and 134 feet of lot depth. The property records indicated that the residence was built in 1947. This property was administratively registered as a vacant building in September of 2009. In 2010, the property was inspected with Staff from Hennepin County and determined that there was sufficient structural damage and deterioration to the house that should be demolished through the City's Remove and Rebuild Program. In 2011, the tax forfeiture process, including notice and opportunity for the heirs of the previous owner's estate to remove personal possessions, was completed and the County proceeded with the contract removal of debris and possessions within the residence and garage. The County had the property appraised at $17,000. This value recognized that the value of the property is the residential lot and that there are costs associated with the demolition of the • building, site restoration, and processing the conveyance of the property. Mission:Ensuring an attractive,clean,safe community that enhances the duality of life and preserves the public trust EDA ITEM MEMORANDUM Hennepin County has indicated that it will sell the property to the City for $22,468.52 which • included the following costs; Assessed Value $17,000.00 Specials After Forfeiture (after 5-20-2010) $ 2,000.00 Assurance Fee(3%) $ 589.68 State Deed Preparation Tax $ 25.00 Filing Fees $ 51.00 State Deed Tax $ 66.83 Property Clean Out Costs $ 2,080.00 Budget Issues: The costs associated with the acquisition, demolition, and property maintenance costs pending its redevelopment will funded through the Housing Account of Tax Increment District No. 3. The estimated cost of demolition and site restoration is approximately$15,000. The TIF 3 Housing Fund is approximately$1,155,060 available for new housing initiatives. Additionally,the Housing Fund is projected to receive approximately$355,000 a year in 2012. Tax Increment District No.3 is a 25 year Redevelopment District that is scheduled to expire in 2021. • Council Goals: Strategic: 1. We will stabilize and improve residential neighborhoods i Mission:Ensuring an attractive,clean,safe coinniunity that enhances the quality of life and preserves the public trust City of Brooklyn Center 55TH AVE N 54TH AVE N z z z rx z 53RDAVE N Aiscra i•.nYiPrcdiS•CmJngtl;C}tOSi15Gt5.'WS' 0 241h Z PID: 0211821430060 Ckv Of t r a� ' 5331 Morgan Ave N BLY Brooklyn Center, MN 55430 "E TER • Commissioner introduced the following resolution and • moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OFTAX FORFEITED PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5331 MORGAN AVENUE NORTH) WHEREAS,on January 12,2009,the Economic Development Authority in and for the Ci ty Brooklyn of Brookl Center Minnesota (the "EDA" adopted ted Resolution No. 2009-02 establishing housing programs and approving the use of funds from the Tax Increment DiDistrict No. 3 housing g account; and WHEREAS, pursuant to EDA Resolution 2009-02, one of the housing programs so established 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, on September 12, 2011, the EDA adopted Resolution No. 2011-20, A Resolution Approving the Continuation of Certain Housing Programs and Reauthorizing the Use of Funds from Tax Increment District No. 3 housing Account;and • WHEREAS,on August 9,2010,the City Council adopted Resolution No.2010-113,A Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 5331 Morgan Avenue North to the City of Brooklyn Center by Hennepin County; and WHEREAS, Hennepin County is offering the sales of this forfeited property for the appraised value of$17,000 plus the conveyance costs of 5,468.52; and WHEREAS, 5331 Morgan Ave. N., the subject property, meets the guidelines for demolition as established by EDA's Remove and Rebuild Program. NOW,THEREFORE,BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center,Minnesota,as follows: 1. The purchase of the Subject Property for the amount of$22,468.52 is hereby confirmed and staff is directed to proceed with the demolition of the residence at 5331 Morgan Avenue. March 26,2012 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 passed and adopted. • Member Kay Lasman introduced the following resolution and moved its adoption: RESOLUTION NO. 2010-113 • RESOLUTION APPROVING THE REQUEST FOR NONPUBLIC SALE OF THE NON-CONSERVATION TAX FORFEITED LAND AT 5331 MORGAN AVENUE NORTH TO THE CITY OF BROOKLYN CENTER BY HENNEPIN COUNTY WHEREAS, numerous requests are received from Hennepin County for the sale or conveyance of tax forfeited land to municipalities and other governmental subdivisions of the state; and WHEREAS, pursuant to legal authority as provided under Minnesota Statute 282, Hennepin County has determined the property located at 53 31 Morgan Avenue North(Property)has been tax-forfeited, and Hennepin County has certified the Property's status as Non-Conservation; and WHEREAS, the Property has been deemed to fall within the City of Brooklyn Center's Target Area of the Neighborhood Stabilization Program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota,that the tax-forfeited land located at 5331 Morgan Avenue North is: 1. Approved as Non-Conservation land. 2. Recommended and requested for non-public sale to the City of Brooklyn • I Center. August 9, 2010 Date Mayor ATTEST: l City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Mark Yelich. and upon vote being taken thereon,the following voted in favor thereof- Tim Willson, Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. COUNCIL ITEM MEMORANDUM • DATE: August 3 2010 TO: Curt Boganey,City Manager FROM: Steve Lillehaug,Director of Public Works/City Engineer SUBJECT: Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 5331 Morgan Avenue North to the City of Brooklyn Center by Hennepin County Recommendation: It is recommended that the City Council consider approval of the attached Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 53.31 Morgan Avenue North to the City of Brooklyn Center by Hennepin County. Background: Hennepin County periodically provides the City of Brooklyn Center a list of tax-forfeited land within the City. In accordance with Minnesota Statue 282, the County requests that the City review the forfeited land regarding the conservation or non-conservation status and resolves or approves the parcels for public auction, for auction to adjacent landowners, or requests public f use conveyance or nonpublic sale to the City. i The property located at 5331 Morgan Avenue North is bounded by single-family private property on the north, south and west sides and public road right-of-way on the east side (Morgan Avenue North). The property has been reviewed and no unusual encumbrances are known to exist that would warrant special consideration or restrictions (see attached figuire).AI special assessment search was performed which revealed outstanding special assessments of $4,078.69 at the City of Brooklyn Center and$1,503.08 at the County. Upon review of the parcel in consideration of the surrounding land uses and the City's comprehensive.plan, staff deems it would serve no public purpose,that would warrant a conservation designation. The Business and Development Director has reviewed the property and has indicated that it falls within the Target Area of the Neighborhood Stabilization Program. The appropriate use of the property is non-conservation and we recommend approving the parcel for nonpublic sale to the City of Brooklyn Center. Upon approval, City.staff is prepared to farther pursue the acquisition of this property, accordingly. Budget Issues: Should the City Council approve this resolution and the County accept the City's request, staff would then further evaluate the affordability and options of the purchase. The City Council.and the Economic Development Authority will also need to further evaluate the costs for acquisition/rehabilitation and consider funding options that include TIF District 3 or the alternative Remove and Rebuild Program. Mission:Ensuring an attractive.,clean,safe community that enhances the quality of life and preserves the.pahlic trust I COUNCIL ITEM MEMORANDUM Council Goals: • Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans 3. We will stabilize and improve residential neighborhoods i . I I i I Hission:Ensuring an attractive,clean,.safe community that enhances the quality of fife andpreserves the public trust 1 3 r r . I i r 1 k I � a ; •,. ' 338 5330 i t '` { yy re- 332 lu IP w , Y e M }} yr.� 0 r r#"e fit; 318" n i" �'�.� Is a 'v a T Legend ----- Road Edge —► Storm Sewer Water Main y , �20� 7 I ,I --►- Sanitary Sewer ' 5306 Al 53 31 Morgan Ave. N. Public Works - Engineering r - July 8, 2010 BROO).'LliV CF.:�TF.R Tax Forfeiture Property o 15 3o 6D Feet Acquisition of 5331 Morgan Avenue North � a City of Brooklyn Center EDA Meeting March 26, 2012 EDP o 53311 Morgan Avenue ® On August 9, 2010 - City Council considered a request from Hennepin County regarding the sale/conveyance of a tax forfeited property -- located within the City's Neighborhood Stabilization Area Potential candidate for either City's Remove & Rebuild Program or as a purchase & rehab for resale. a The City Council adopted Resolution No. 2010-113, a Resolution Approving the Request for Nonpublic Sage of the Non-Conservation Tax Forfeited Land at 5331 Morgan Ave. North to the City of Brooklyn Center by Hennepin Co u nty. StQ' N QA'd U21E5 - 1 _ : r /J - �Sa -J yA� 1-x. • " �1 k i- Sl. q �I 8 f5 S 5.55 'a ,iS T - a � ..Vi 1- tAcx vt-ti I N J1 , AI. env Ht>s _ .AAA; - tat r r { 6144 •ir �5347 I j 5345 533 ��. 514 , 4 , ' TT i C - 533a I 32 a � s Z r 4 m 5331 �F �• ^� .y z � -fit � � 1^ _r�, � � °' ».� �•• �: fy�:�',! I�. - 5328 d 2. iy� ^� a .�' . f . ! I 531'& ' r � �. . 5 322 5321 r- -� 531$ - _f 5312 .; 1 Legend 5315 Le 9 t 1 i• ---- Road Edge —> Storm Sewer t Water Main I } 200 —� Sanitary Sewer � '� 5306 5331 Morgan Ave. N. Public Works-Engineering Roux,-a e• July 8.2010 rlT 1TFR Tax Forfeiture Property I f 'A r �� organ Ave. ® Subject property: area 15,689 sq. ft.; 115 feet of lot width and 134 feet of lot depth. © Property records indicated that the residence was built in 1947. © Property was registered as a vacant building in September of 2009. The City's site inspection included a substantial list of items which required to be corrected. ® In 2010, the property was inspected with Staff from Hennepin County and it was determined that it had sufficient structural damage that it should be demolished through the City's Remove and Rebuild Program. In 2011, the tax forfeiture process and notices to the heirs of the previous owner's estate was completed and the County proceeded with the contract removal of debris and possessions within the residence and garage. The County had the property appraised at $17,000. This value recognized that the value of the property was the lot value and that there were certain costs to be incurred to demolish the building and process the conveyance of the property. Hennepin County has indicated that it will sell the property to the City for $22,468.52 which included the following costs; Assessed Value $17,000.00 Specials After Forfeiture $ 2,000.00 Assurance Fee (3%) $ 589.68 State Deed Preparation Tax $ 25.00 Filing Fees $ 51.00 State Deed Tax $ 66.83 Property Clean Out Costs $ 21080.00 The City's cost to have the property demolished is estimated at approximately $15,000 Kecornmendatson Economic Development Authority consider approval/adoption of the Resolution Authoring the Acquisition of Tax Forfeited property in Connection with the Remove and Rebuild Program (5331 Morgan Avenue North . ) • EDA Agenda Item No. 4b EDA ITEM MEMORANDUM DATE: March 20, 2012 TO: Curt Boganey, City Manager FROM: Gary Eitel,Director of Business&Development SUBJECT: Resolution Authorizing the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program (5800 Bryant Avenue N.) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Authorizing the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program(5800 Bryant Avenue N.) Background: On August 9, 2010, the City Council considered a request from Hennepin County regarding the sale/conveyance of 5800 Bryant Ave. N., a tax forfeited property located within the City's NSP I Area as a potential candidate for either the City's Remove & Rebuild Program or as a purchase &rehab for resale. The City Council adopted Resolution No. 2010-113, A Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 5800 Bryant Avenue North to . the City of Brooklyn Center by Hennepin County. Attached for your reference is a copy of Resolution 2010-112 and related staff memorandum. 5800 Bryant Ave. North: The subject property is a large corner lot having an area 14,750 sq.ft. with 118 feet of lot frontage on Bryant Ave. and 125 feet of frontage on 58th Ave. The property records indicated that the residence was built in 1927. This property was administratively registered as a vacant building in June of 2010. In 2010, the property was inspected with Staff from Hennepin County and it was determined the home was functionally obsolete and sufficient state of deterioration that it should be demolished through the City's Remove and Rebuild Program. In 2011, the tax forfeiture process was completed and the County proceeded with the contract removal of debris and possessions within the residence and garage. The County had the property appraised at $15,000. This value recognized that the value of the property was the lot value and that there were certain costs to be incurred to demolish the building and process the conveyance of the property. • Mission:Ensuring an attractive,clean,safe community that enhances the quality of life and preserves the public trust EDA ITEM MEMORANDUM Hennepin County has indicated that it will sell the property to the City for $18,980.40 which included the following costs; • Assessed Value $15,000.00 Specials After Forfeiture $ 616.86 Assurance Fee(3%) $ 468.51 State Deed Preparation Tax $ 25.00 Filing Fees $ 51.00 State Deed Tax $ 53.10 Property Clean Out Costs $ 2,765.93 Budget Issues: The costs associated with the acquisition,demolition, and property maintenance costs pending its redevelopment will funded through the Housing Account of Tax Increment District No. 3. atel 15 000. is approximately$ The estimated cost of demolition and site restoration pp y , The TIF 3 Housing Fund is approximately$1,155,060 available for new housing initiatives. Additionally,the Housing Fund is projected to receive approximately$355,000 a year in 2012. Tax Increment District No. 3 is a 25 year Redevelopment District that is scheduled to expire in 2021. • Council Goals: Strategic: 1. We will stabilize and improve residential neighborhoods • Mission:Ensuring an attractive,clean,safe commun4 drat enhances the quality of life and preserves the public trust City of Brooklyn Center z z 7 � G G U � J a � d � 8� 58TH AVE N a r 7 A C7 x a z a z y 4 q Y� w ti m � 2 z W } 87TH AVEN z a d N x ti U K K d w A7mrseakymnMp15"Cm�ng�;(Ck:4G75&tS.Yff 0 2nah .o PID: 0111821240083 #F. , } B ' L�° M x 5800 Bryant Ave N EiAN TER 1,; Brooklyn Center, MN 55430 Zz i Commissioner introduced the following resolution and • moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OFTAX FORFEITED PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5800 BRYANT AVENUE NORTH) WHEREAS,on January 12,2009,the Economic Development Authority in and for the City of Brooklyn Center, Minnesota (the "EDA") adopted Resolution No. 2009-02 establishing housing programs and approving the use of funds from the Tax Increment District No. 3 housing account;and WHEREAS, pursuant to EDA Resolution 2009-02, one of the housing programs so established 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, on September 12, 2011, the EDA adopted Resolution No. 2011-20, A Resolution Approving the Continuation of Certain Housing Programs and Reauthorizing the Use of Funds from Tax Increment District No. 3 housing Account;and • WHEREAS,on August 9,2010,the City Council adopted ResolutionNo.2010-112,A Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 5800 Bryant Avenue North to the City of Brooklyn Center by Hennepin County;and WHEREAS, Hennepin County is offering the sales of this forfeited property for the appraised value of$15,000 plus the conveyance costs of 3,980.40; and WHEREAS, 5800 Bryant Ave. N., the subject property, meets the guidelines for demolition as established by EDA's Remove and Rebuild Program. NOW,THEREFORE,BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center,Minnesota,as follows: I. The purchase of the Subject Property for the amount of$18,980.40 is hereby confirmed and staff is directed to proceed with the demolition of the residence at 5800 Bryant Avenue. March 26.2012 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 passed and adopted. • Member Tim Roche introduced the following resolution and moved its adoption: RESOLUTION NO. 2010-112 • RESOLUTION APPROVING THE REQUEST FOR NONPUBLIC SALE OF THE NON-CONSERVATION TAX FORFEITED LAND AT 5800 BRYANT AVENUE NORTH TO THE CITY OF BROOKLYN CENTER BY HENNEPIN COUNTY WHEREAS, numerous requests are received from Hennepin County for the sale or conveyance of tax forfeited land to municipalities and other governmental subdivisions of the state; and WHEREAS, pursuant to legal authority as provided under Minnesota Statute 282, Hennepin County has determined the property located at 5800 Bryant Avenue North(Property)has been tax-forfeited, and Hennepin County has certified the Property's status as Non-Conservation; and WHEREAS, the Property has been deemed to fall within the City of Brooklyn Center's Target Area of the Neighborhood Stabilization Program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center,Minnesota,that the tax-forfeited land located at 5800 Bryant Avenue North is: 1. Approved as Non-Conservation land. • 2. Recommended and requested for non-public sale to the City of Brooklyn Center. R August 9,2010 Date Mayor ATTEST: c� City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Mark Yelich and upon vote being taken thereon,the following voted in favor thereof: Tim Willson,, Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich ; and.the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. • COUNCIL ITEM MEMORANDUM DATE: Au 20 August 3, 10 , TO: Curt Boganey, City Manager FROM: Steve Lillehaug,Director of Public Works/City Engineer_ SIX SUBJECT: Resoluti on Approving th e Request fo r Nonpublic Sale of the Nan-Conservation Tax Forfeited Land at 5800 Bryant Avenue North to the City of Brooklyn Center by Hennepin County Recommendation: It is recommended that the City Council consider approval of the attached Resolution Approving the Request for Nonpublic Sale of the Non=Conservation Land at 5800 Bryant Avenue North to the City of Brooklyn Center by Hennepin County. Background: Hennepin County periodically provides the City of Brooklyn Center a list of tax-forfeited.land within the City. In accordance with Minnesota Statue 282, the County requests that the City review the forfeited land regarding the conservation or non-conservation status and resolves or approves the parcels for public auction, for auction to adjacent landowners, or requests public use conveyance or nonpublic sale to the City. The property located at 5800 Bryant Avenue North is bounded by single-family private property on the north and east sides, public road right-of-way on the south side (58'x'Avenue North) and public road right-of-way on the west side (Bryant Avenue North). The property has been reviewed and no unusual encumbrances are known to exist that would-warrant special . consideration or restrictions (see attached figure). A special assessment search was performed which revealed outstanding special assessments of$4,303.71 at the City of Brooklyn Center and $1.,397.75 at the County. Upon review of the parcel in consideration of the surrounding land uses and the City's comprehensive plan, staff deems it would serve no public purpose that would warrant a conservation designation. The Business and Development Director has reviewed the property and has indicated that it falls within the Target Area of the Neighborhood Stabilization Program. The appropriate use of the property is non-conservation and we recommend approving the parcel for nonpublic sale to the City of Brooklyn Center. Upon approval, City staff is prepared to further pursue the acquisition of this property, accordingly. Budget Issues: Should the City Council approve this resolution and the County accepUthe City's request, staff would then further evaluate the affordability and options of the purchase. The City Council and the Economic Development Authority will also need to further evaluate the costs for acquisition/rehabilitation and consider funding options that include TIF District 3 or the alternative Remove and Rebuild Program. Mission:ru.sur&+g an attractive,clean,sa(e community that enhances the qua(itti•of life and preserves the public[rust COUNCIL ITEM MEMORANDUM . Council Goals: . Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans 3. We will stabilize and improve residential neighborhoods i , • Mission:Ensuring an attractive,clean,safe community that enhances the quali(v of life and preserves the public trust f x low h „ a . � " q ZNA X5827 " q t ._ T. x � 7 s. ; 1 ;x f g #1 3 a F '- 4 a y l; r =A 807 >`t 7 807 x 1 ! n AP 11 IS fi ,_ n " 5800 ,a x " f I M' x s r 58TH QJE Fs X5737 Q. Legend . ----- Road Edge —t Storm Sewer ` 574' 1 A Water Main 1 � , , �� �, ., �° 5731 --� Sanitary Sewer 5800 Bryant Ave. N. Public Works - Engineering « July 8,2010 PROOKI rFFR Tax Forfeiture Property 0 is 30 6 � Acquisition of 5800 Bryant Avenue North z City of Brooklyn Center EDA Meeting March 26, 2012 � f 4'< EDA o 5800 B Avenue N ,, On August 9, 2010 - City Council considered a request from Hennepin County regarding the sale/conveyance of a tax forfeited property -- located within the City's Neighborhood Stabilization Area Potentia0 candidate for either City's Remove & Rebuild Program or as a purchase & rehab for resale. The City Council adopted Resolution No. 2010-113, a Resolution Approving the Request for Nonpublic Sale of the Non-Conservation Tax Forfeited Land at 5800 Bryant Avenue North to the City of Brooklyn Center by Hennepin County. , rra -- r. .. ,c' r a it TW �� ,. Vic. .._•a f�' ,,,,�,,yy i { C" . - '� .,.e - jam.C� . ��•� 3 LIZ r P AMR i. y y ��_ �r k t `�f � .,•,. p �` . 0 7 � _ 5729 " .-:� .��,�• � /_5. . ' Y T . .• R ss. 3 tt mt 41 crci y m'_..n^ .,s '•3J5 R.r , 29 4 � i 5827 5830 5'8 + 6813 581'5 ' _ 5824 - Z 7 �t i z' 5807 5807 N ;11 _. ir CO I I Soooo r y I j 58TH AVE N I n; L �,7 , r� 5757 ; 5750 ■ r. 5737 9 2 i i Z O I Legend o Q i ---- Road Edge _ -- Storm Sewer ' 5744 ( I -- - Water Main y 57311 f — Sanitary Sewer , 5800 Bryant Ave. N. Public Works-Engineering naonez r+ July 8,2010 �F.T1R Tax Forfeiture Property 5800 Bryant Ave. N . • large corner lot area = 14,750 sq. ft.; 118 ft. frontage on Bryant & 125 ft. frontage on 58th Ave. • Residence built in 1927. • Property was registered as a vacant building in June 2010 • In 2010, the property was inspected with Staff from Hennepin County and it was determined to be functionally obsolete and in a state of deterioration it should be demolished through the City's Remove and Rebuild Program. • In 2011, the tax forfeiture process was completed and the County proceeded with the contract removal of debris and possessions within the residence and garage. ■ The County had the property appraised at $15,000. This value recognized that the value of the property was the lot value and that there were certain costs to be incurred to demolish the building and process the conveyance of the property. Hennepin County has indicated that it will sell the property to the City for $18,980 which included the following costs; • Assessed Value $15,000.00 • Specials After Forfeiture $ 616.86 • Assurance Fee (3%) $ 468,51 • State Deed Preparation Tax $ 25.00 • Filing Fees $ 51.00 • State Deed Tax $ 66.83 • Property Clean Out Costs $ 21765.93 The City's cost to have the property demolished is estimated at approximately $15,000 Recommendation ■ Economic development Authority consider approval/adoptoor of the Resolutoon Authoring The AICquisotior of Tax forfeited Properly in Connectior with the Remove and Rebuild Program (5800 Bryant Avenue North )