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HomeMy WebLinkAbout2012 04-09 EDAP Regular Session i EDA MEETING City of Brooklyn Center April 9, 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 p p g 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. March 26, 2012—Regular Session 4. Commission Consideration Items a. Resolution Authorizing the Acquisition of Property in Connection With the Remove and Rebuild Program (340153,d Avenue N) 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 MARCH 26, 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 8:43 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, 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 Myszkowski seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. February 13, 2012—Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2012-04 AUTHORIZING THE ACQUISITION OF TAX FORFEITED PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5331 MORGAN AVENUE) Director of Business and Development Gary Eitel introduced the item, discussed the history and current condition of 5331 Morgan Avenue, and stated the purpose of the proposed resolution to acquire this tax forfeited property for the City's Remove and Rebuild Program. Hennepin County has indicated it will sell the property to the City for $22,468.52 and it is estimated to cost $15,000 for demolition and site restoration. 03/26/12 -1- DRAFT Commissioner Ryan moved and Commissioner Myszkowski seconded adoption of RESOLUTION NO. 2012-04 Authorizing the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program(5331 Morgan Avenue). Motion passed unanimously. 4b. RESOLUTION NO. 2012-05 AUTHORIZING THE ACQUISITION OF TAX FORFEITED PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5800 BRYANT AVENUE) Mr. Eitel introduced the item, discussed the history and current condition of 5800 Bryant Avenue, and stated the purpose of the proposed resolution to acquire this tax forfeited property for the City's Remove and Rebuild Program. Hennepin County has indicated it will sell the property to the City for $18,980 and it is estimated to cost $15,000 for demolition and site restoration. Commissioner Myszlcowski moved and Commissioner Lasman seconded adoption of RESOLUTION NO. 2012-05 Authorizing the Acquisition of Tax Forfeited Property in Connection with the Remove and Rebuild Program (5800 Bryant Avenue). Motion passed unanimously. 5. ADJOURNMENT I Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:58 p.m. Motion passed unanimously. 03/26/12 -2- DRAFT EDA Agenda Item No. 4a EDA ITEM MEMORANDUM DATE: April 3, 2012 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development SUBJECT: Resolution Authorizing the Acquisition of Property in Connection With the Remove and Rebuild Program. (3401 53rd 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. (3401 53`d Avenue North) Background: On January 12, 2009, the EDA adopted Resolution No. 2009-02, A Resolution Establishing Housing Programs and Approving the Use of Funds from Tax Increment District No. 3 Housing Account, which authorized the Remove and Rebuild Program. On October 26, 2009, the EDA adopted Resolution No. 2009-17, A Resolution Authorizing Staff to Acquire Certain Foreclosed Homes within the City and to Execute All Instruments and Contracts Relating Thereto. The EDA's guidelines for acquisition of foreclosed properties include the following: • Properties must be registered as vacant. Properties would be purchased either with TIF fiends or federal Neighborhood Stabilization Program (NSP) funds. ® The property would be determined to be blighted as defined by the Minnesota Housing Finance Agency in its application to the Department of Housing and Urban Development (HUD) for NSP funding. o The purchase price could not be more than 65 percent of Hennepin County's latest Estimated Market Value for the property and could not exceed $80,000. © Prior to the acquisition of property, staff would conduct a due diligence investigation to protect the EDA's interest with regard to purchase of the property. The authority to acquire property under the terms of the resolution would expire in 12 months from the date of its passage. 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 Home within the City and to Execute All Instruments and Contracts Related Thereto. { mission:E1nswing an attractive,dean,safe community that enhances the qu ali6y Qf life and preserves the p ublie trust I EDA ITEM MEMORANDUM 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. REMOVE AND REBUILD PROGRAM: The program was created to remove blighted, distressed, and unmarketable properties and to return these properties to an enhanced and compatible use with the neighborhood and consistent with zoning regulations and the City's Comprehensive Plan. Additionally,the program recognized that if an appropriate use for the land is not imminent, the property will be land banked until such time an appropriate use becomes available. Proposed Acquisition: The subject property is a vacant home that foreclosed on February,2012. The property is listed at $34,700, which reflects the current condition of the residence and the reported copper theft. See attached photographs taken April 3, 2012. The property is an 11,427 sq.ft. interior lot with 142' of frontage on 53`d Ave. and 80' of depth. The tax records indicate that the residence was built in 1926. The property is part of the R-5 Multiple Family Residence District of approx. 19 acres developed as Twin Lake Manor Apartments. This zoning classification does not include single family detached residences as a permitted use; as such this single family residence is considered a non- conforming/grandfathered use within this R-5 zone. The 2011 property tax value is shown at$86,900. Bldg. Value $44,200 Lot Value $44,600 A special assessment search indicates the following levied assessments are part of the 2012 real estate taxes: $ 319.00 2002 Street and Drainage Improvements $ 527.67 2008 Tree Removal $ 165.00 Administrative Fines The remaining assessment for the 2008 Tree Removal is $527.67 Additionally,there is a pending assessment of$650.00 for 2011 Nuisance Abatements. Mission:Ensuring an attractive,clear:,safe community that enhances the quality of life and preserves the public trust i �I EDA ITEM MEMORANDUM BUDGET ISSUES: The acquisition and the demolition costs of this property are eligible expenditures and will be funded from the Tax Increment District No. 3 Housing Account. The estimated cost of demolition and site restoration is approximately$15,000. The TIF 3 Housing Account currently has approximately $1,000,000 available for new or ongoing housing initiatives (after the programming of $235,000 for the continuation of the Renew Loan Program). This Housing Fund is scheduled to receive approximately $249,000 in 2012 (15% of the annual tax increment generated by the District, reported by Hennepin County to be $1,661,238 for 2012). Tax Increment District 3 is a 25 year Redevelopment District with an expiration date of 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,cleat!,safe community that elthaltCCS the tlitallfy'of life rind preserves the public.trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM. (340153' 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,real properly located at 3401 53rd Ave.N. (the"Subject Property") is a vacant and foreclosed properly that listed for sale at a price of$34,700; and WHEREAS, the subject property met the guidelines established by EDA for the acquisition of foreclosed properties and a purchase agreement in the amount of$34,700 has been entered into to acquire this property through the City'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 is hereby confirmed and staff is directed to proceed with the demolition of the residence at 3401 53rd Avenue. NOW,THEREFORE,BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center,Minnesota, as follows: April 9,2012 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. i City of Brooklyn Center 630 MOO 0 53RD"E N AM 52 NO AVE N X3 4 Moo 0 4r M,U PID: 1011821120001 46 m L r RROOKI, 3401 53rd Ave N R Brooklyn Center., MN 55429 CENTE z r 3 u Vii' � bA m y z 01' 14j 4 r�^ � q u x u C7 - �. C3 •b t Ut � + ', s bA y 1 's f r _ x Y 6 - 4: 4 416 1. jiAi �rllrA f� 9 f 4- RIB_ Zj Ll s ... 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ME January 12, 2009, the EDA adopted Resolution No. 2009-02, a Resolution Establishing Housing Programs and Approving the Use of Funds from Tax Increment District No. 3 Housing Account, which authorized the Remove and Rebuild Program. ® October 26, 2009, the EDA adopted Resolution No. 2009-17, a Resolution Authorizing Staff to Acquire Certain Foreclosed Homes within the City and to Execute All Instruments and Contracts Relating Thereto. �! 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 Home within the City and to Execute All Instruments and Contracts Related Thereto. © 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. 13401 - 53 d Avenue N . iw Subject property is a vacant home - foreclosed on February, 2012. Property listed at $34,700 (reflects the current condition of the residence and the reported copper theft) The property is an 11,427 sq . ft. interior sot with 142' of frontage on 53rd Ave. and 80' of depth . Residence built in 1926. Property is part of the R-5 Multiple Family Residence District of approx. 19 acres developed as Twin Lake Manor Apartments. This zoning does not include single family detached residences as a permitted use (residence is considered a noon-conforming use within this R-5 zone). —r a 3401 — 53,dAvenue N . ■ 7he 2011 property tax vaDue is shown at $86,900. Bldg. Value = $44,200 Lot Value = $44,600 A special assessment search indicates the following levied assessments are part of the 2012 real estate taxes: $ 319.00 (2002 Street and Drainage improvements) $ 527.67 (2008 Tree Removal) $ 165.00 (Administrative Fines) ■ Remaining assessment for the 2008 Tree Removal is $527.67 "W. ■ Pending assessment of $650.00 for 2011 Nuisance Abatements. Acquisition & demolition costs are eligib9e expenditures; funded from fax Increment District No. 3 Housing Account, The estimated cost of demolition and site restoration approx. $15,000. The TIF 3 dousing Account currently has approx. $1,.000,000 available for new or ongoing housing initiatives (after the prograrnmong of $235,000 for the continuation of the Renew Loan Program) . This Housing Fund is scheduled to receive approx. $249,,000 in 2012 (15% of the annual tax increment generated by the District, reported by Hennepin Co. to be $1,661,238 for 2012). ■ Tax Increment District 3 is a 25-year Redevelopment District with an expiration date of 2021. ■ ltas recommended that the Economic Development Authority ( EDA) corsider approva �/adoptoon of Reso � utoon Authcrozing the Acquisition of 3401 - 53''d Avenue Northin connection With the Remove and Rebuild Progra ml .