HomeMy WebLinkAbout2012 07-09 EDAP Regular Session EDA MEETING
City of Brooklyn Center
July 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
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. April 23, 2012—Regular Session
4. Commission Consideration Items
a. Resolution Authoring the Acquisition of the Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor(6101 Brooklyn Boulevard)
Requested Commission Action:
—Motion to adopt resolution.
b. Public Hearing on Proposed Sale of Certain Real Property ("Property") to Real
Estate Recycling or an Affiliate for Use as Parking to Support a 90,000 Square
Foot Office and Warehouse Facility (Southwest Quadrant of France Avenue
North and T.H. 100)
1. Resolution Approving Purchase Agreement and Conveyance of Certain
Property to Real Estate Recycling. (MnDOT Excess R.O.W.)
Requested Commission Action:
—Motion to open Public Hearing.
—Motion to take public input.
Motion to close Public Hearing.
—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
APRIL 23, 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 8:49 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, 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 Lasman moved and Commissioner Ryan seconded approval of the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
L April 9, 2012—Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. CONSIDERATION OF APPROVAL OF GRANT APPLICATIONS FOR
CONTAMINATION CLEANUP OF THE FORMER LIFETIME= FITNESS
LOCATED AT 4001 LAKEBREEZE AVENUE IN BROOKLYN CENTER
Executive Director Curt Boganey introduced the item.
Director of Business and Development Gary Eitel presented consideration of three grants to
address contamination cleanup on the former Lifetime Fitness property estimated to cost $1.33
million. He indicated there would be no cost to the City except for confirming the work was
completed and processing the grant funds.
04/23/12 -1- DRAFT
The EDA discussed its support of the grant applications and fast tracking the process since this •
company has a proven track record with contamination remediation on other Brooklyn Center
properties. In addition, there would be no budget impact since the City would act as a grant
conduit, monitoring the work, and processing the grant. Mr. Eitel indicated fast tracking is
viable as a result of the property owner's and consultants' good rapport with the MPCA and
understanding of the process. In addition the Metropolitan Council supports this shovel ready
project because it will create immediate jobs.
1. RESOLUTION NO. 2012-07 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. 2012-07 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. 2012-08 AUTHORIZING THE SUBMISSION OF A
GRANT APPLICATION TO THE METROPOLITAN COUNCIL FOR
THE TAX BASE REVITALIZATION ACCOUNT
Commissioner Lasman moved and Commissioner Myszkowski seconded adoption of
RESOLUTION NO. 2012-08 Authorizing the Submission of a Grant Application to the
Metropolitan Council for the Tax Base Revitalization Account(Lifetime Fitness Site).
Motion passed unanimously.
3. RESOLUTION NO. 2012-09 APPROVING AN APPLICATION FOR THE
HENNEPIN COUNTY ENVIRONMENTAL FINANCIAL GRANT
Commissioner Ryan moved and Commissioner Myszkowski seconded adoption of
RESOLUTION NO. 2012-09 Approving an Application for the Hennepin County Environmental
Financial Grant.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic
Development Authority meeting at 8:59 p.m.
Motion passed unanimously. is
04/23/12 -2- DRAFT
•
EDA Agenda Item No. 4a
EDA ITEM MEMORANDUM
• DATE: July 2,2012
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business &Developments,
SUBJECT: Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor. (6101 Brooklyn Boulevard)
Recommendation:
It is recommended that the Economic Development Authority consider approval/adoption of the
Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements
and Redevelopment Opportunities within the Brooklyn Boulevard Corridor. (6101 Brooklyn
Boulevard
Background:
On April 9, 2012 the City Council's Work Session included a discussion on the opportunity to
acquire 6101 Brooklyn Boulevard as part of the reimaging of the Brooklyn Boulevard Corridor.
• The consensus of the City ouncil was that the acquisition of 6101 Brooklyn Boulevard and the
ty q yn
removal of this single-family residence would have a positive impact on improving the image of
Brooklyn Boulevard and that it is in the public's interest to pursue negotiations for the purchase
of this parcel through the use of TIF 3 Housing Funds.
Attached for your reference is a copy of the April 9, 2012 City Council Work Session minutes on
this discussion and a copy of the staff memorandum on this item.
Tax Increment District No. 3:
Tax Increment District No 3 was created in 1994 as a Redevelopment District to provide
assistance to various commercial redevelopment and housing development projects within the
District. The housing objectives included the following:
1. To acquire blighted or deteriorated residential property for rehabilitation or
clearance and redevelopment.
2. To develop housing opportunities for market segments underserved by the City
including housing for the disabled and elderly.
The special state legislation associated with the creation of this Tax Increment District
included provisions that 15% of the revenues generated from tax increment in any year is
• deposited in the housing development account of the authority and expended according to
the tax increment financing plan.
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMORANDUM
In 2009, the EDA established the following programs which are funded through Tax Increment •
District No. 3:
The Remove and Rebuild Program was created as part of the City's foreclosure strategies 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.
This program also 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.
Attached for your reference is an aerial photograph for the 6000 -6100 block of Brooklyn
Boulevard which identifies the foreclosed and voluntary sales the EDA has acquired as part of
the reshaping and reimaging of the Brooklyn Boulevard corridor.
Proposed Acquisition:
The property is a 20,307 sq.ft. corner lot with 105' of frontage on Brooklyn Boulevard and 235
feet of frontage on 61St Ave. The tax records indicate that the residence was built in 1955.
The property is zoned C-1, Office Service District with the existing residential structure
considered a non-conforming use. The C-1 and C-lA Zoning Districts require a minimum lot
size of 1 acre,when the property abuts a major thoroughfare. •
The 2012 Property tax statement for this property which identifies the following valuations for
this property:
- Estimated Market Value: $138,200
- Taxable Market Value: $113,398
The property owner is offering the EDA the opportunity to acquire the property for the $113,398
and has indicated that if the EDA was not interested at this price,that he intends to either list the
property with a real estate broker or wait until market conditions improve.
The property owner has agreed to the condition that the sales price will be adjusted to cover an
relocation costs that the EDA may occur.
The asking price of$113,398 plus an estimated demolition cost of$15,000 would result in an
overall land acquisition cost of approximately$6.20 per sq.ft.
In comparison,the adjacent commercial parking/sales lot(part of the Cars for Heart Sales Lot)
has an area of 28,658 sq.ft. and an Estimated Market Value&Taxable Market Value of
$350,000 or approximately$12.20 per sq.ft.
The acquisition of this corner lot and removal of the single family residence is consistent with
the Community Image Objectives as identified in the 2030 Comprehensive Plan: •`
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the duality of life
for all people anal preserves the public trust
EDA ITEM MEMORANDUM
• • Improve the Brooklyn Boulevard corridor through the redevelopment and intensification
of underutilized sites,traffic improvements, and appearance enhancements, as outlined in
the Brooklyn Boulevard Redevelopment Study (1993)and the Brooklyn Boulevard
Streetscape Amenities Study(1994). The Brooklyn Boulevard Streetscape Amenities
Study specifically recognized the significance of acquiring critical parcels and land
banking them in order to maintain development control over the nature and scale of
redevelopment.
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 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.
Should the EDA determine that it is in the Community's best interest to convey this property for
• a land use that is not consistent with the rules and regulations of this Tax Increment District, the
proceeds from that sale would be used to reimburse the TIF 3 Housing Fund?
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans
4. We will improve the city's image
•
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMORANDUM
April 9,2012 •
City Council Work Session Minutes
OPPORTUNITY TO ACQUIRE 6101 BROOKLYN BOULEVARD AS PART OF THE
REIMAGING OF BROOKLYN BOULEVARD CORRIDOR.
Mr. Eitel used an aerial map to point out the properties under City ownership in the area of
Brooklyn Boulevard. He advised that Mr. Doua Vang, owner of 6101 Brooklyn Boulevard, is
offering the EDA the opportunity to acquire this commercial lot for its 2011 taxable market
value of$113,398. Mr. Eitel displayed pictures of the subject site, existing house, and 20,307 sq.
ft. corner lot zoned C-1 Service/Office District. He also noted other properties on Brooklyn
Boulevard that may be offered for sale in the near future. If approved for purchase, the
negotiations would deduct any dollars necessary to pay for relocation benefits to Mr. Vang's son,
who currently resides in the house.
Mr. Eitel noted control of this property allows the City to look at the future uses in this area to
ensure the entrance to this neighborhood is enhanced and position the City for properties to the
north. He asked the City Council if it feels the acquisition of this commercial lot and removal of
this single-family residence will have a positive effect on improving the image of Brooklyn
Boulevard and if it is in the public's interest to direct staff to pursue negotiations for the
acquisition of 6101 Brooklyn Boulevard through the use of Tax Increment Financing (TIF) 3
housing farads. He advised that if this property is not used for residential purposes, it is required
that the funds be paid back to TIF 3. •
Councilmember Ryan noted the acquisition of this property and the Cars for Heart property, if it
came into play, could result in a parcel in excess of five acres. He indicated if TIF 3 funds are
used for this purchase and the property is developed other than residential, it would not be a large
obstacle to reimburse the TIF 3 funds because a development plan would come forward. Mr.
Eitel stated that is correct.
The City Council and Mr. Eitel discussed the potential redevelopment site for commercial,
service,medical, or office that could be created in this area.
Councilmember Lasman asked whether the cost for demolition and clearing is estimated at
$15,000. Mr. Eitel answered in the affirmative. Councilmember Lasman stated the acquisition
of this parcel fits the direction defined in the City's 2020 and 2030 Comprehensive Plans to
move Brooklyn Boulevard away from residential use and into commercial use. She supported
moving forward subject to staff negotiating a favorable purchase price.
Councilmember Kleven noted it is expected that all of the single-family homes along Brooklyn
Boulevard, including this property, will be gone in the future so if TIF funds are used, they will
need to be reimbursed. Mr. Eitel indicated if the parcel is used for housing it is eligible for TIF 3
housing funding and if not used in that way the property will be purchased for another use and
then the funds will be reimbursed to TIF 3.
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMORANDUM
• Mayor Willson reviewed the efforts of the City since the early 1990s to purchase smaller parcels
along Brooklyn Boulevard for commercial use rather than housing. He noted this has been a
long-term effort and the current economy and foreclosures, have created an opportunity for the
City to acquire some parcels. Mayor Willson stated his support to move forward with the
purchase of this parcel.
Councilmember Myszkowski stated she wholly supports this purchase as a step towards
redevelopment of the area. She asked whether the City Council is able to discuss negotiating
strategy in closed session. Mr. Eitel answered in the affirmative.
Councilmember Ryan stated he supports both policy questions in the affirmative.
The consensus of the City Council was to fmd that the acquisition of 6101 Brooklyn Boulevard
and removal of this single-family residence will have a positive impact on improving the image
of Brooklyn Boulevard and it is in the public's interest to pursue negotiations for the purchase of
this parcel through the use of TIF 3 Funds.
•
•
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life
for all people anal preserves the public trust
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Commissioner introduced the following resolution and moved
its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILITATE
NEIGHBORHOOD IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITIES
WITHIN THE BROOKLYN BOULEVARD CORRIDOR(6101 Brooklyn Boulevard)
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 Financing 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
develo meat b private enterprise
p YP
• t or underdeveloped land
To better utilize vacant p
. • 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, real property located at 6101 Brooklyn Boulevard. (the "Subject
Property")is a voluntary sale by the property owner; and
WHEREAS,City staff have negotiated a purchase agreement for the purchase by the
EDA of the Subject Property in an amount not to exceed$108,398; and
WHEREAS,the EDA has determined that acquisition of the Subject Property on the
• terms and conditions set forth in the proposed purchase agreement is consistent with the goals and
objectives of the Brooklyn Boulevard Streetscape Amenities Study,the City's Comprehensive Plans,
and the Tax Increment District No. 3 Housing Program and is in the best interests of the City of .
Brooklyn Center and its citizens.
NOW,THEREFORE,BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center, Minnesota, as follows:
1. The purchase agreement for the Subject Property is hereby approved.
2. The President and Executive Director of the EDA are authorized and directed to
execute the purchase agreement, and the Executive Director is authorized and
directed to take all such further steps as are necessary to effect the terms thereof.
July 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 duly passed and adopted.
•
• PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement ("Agreement") is made this day of
, 2012,by and between Doua Vang and Lee Vang,husband and wife ("Seller") and the
Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and
politic under the laws of the State of Minnesota("Buyer").
2. SALE OF PROPERTY. Seller is the owner of that certain real estate ("Property")
located at 6101 Brooklyn Blvd. Brooklyn Center, MN 55429, Hennepin County,Minnesota and
legally described as follows:
Lot 2 except that part thereof which lies Northeasterly of a line run parallel with
and distant 42 feet Southwesterly of the following described line: From a point
on the North line of Section 3, Township 118 North Range 21 West, distant
1741.08 feet West of the Northeast corner thereof, run Southeasterly at an angle
of 68 degrees, 01 minutes, 52.3 seconds, with said North Section line for 104.54
feet; thence deflect to the right at an angle of 17 degrees, 20 minutes, 35.2
seconds for 536.92 feet to the point of beginning of the line to be described;
thence run Northwesterly along the last described course for 100 feet; thence
deflect to the left on a 2 degree, 00 minute curve (delta angle 17 degrees, 20
minutes, 35.2 seconds) for 867.16 feet and there terminating, also except a
triangular piece of the above described part of Lot 2 lying Southeasterly of the
following described line: Beginning at a point on the Northeasterly line of the
above described part of Lot 2, distant 30 feet Northwesterly of its intersection
with the Southerly boundary of said Lot 2; thence run Southwesterly to a point on
said Southerly boundary, distant 30 feet Westerly of said intersection, Block 6,
Wangstad's Brooklyn Terrace.
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the
exclusive right to purchase the Property and all improvements and fixtures thereon,together with
all appurtenances,including,but not limited to,plant, shrubs,trees, and grass.
4. PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal
property or fixtures owned by Seller and currently located on the Property for purposes of this
sale.
5. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price ("Purchase Price") for the
Property is One Hundred Thirteen Thousand Three Hundred Ninety Eight and No/100ths
Dollars ($113,398.00).
•
404245YI CBRBR305-109
1
B. TERMS: •
(1) EARNEST MONEY. The sum of Zero Dollars ($0.00) Earnest Money
("Earnest Money") shall be paid by the Buyer to the Seller, the receipt of
which is hereby acknowledged.
(2) BALANCE DUE SELLER: Buyer agrees to pay by check or wire transfer
on the Closing Date ("Closing") any remaining Balance Due according to
the terms of this Agreement.
(3) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller
agrees to execute and deliver a Warranty Deed conveying marketable title
to the Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal
regulations.
b. Reservation of minerals or mineral rights to the State of
Minnesota, if any.
C. Public utility and drainage easements of record which will not
interfere with Buyer's intended use of the Property.
d. Title defects waived by Buyer pursuant to paragraph 13 below. •
6. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER.
A. Warranty Deed free and clear of encumbrances subject only to the exceptions
stated in 5B(3a, 3b,3c and 3d).
B. Standard form Affidavit of Seller.
C. Abstract of title, if available.
D. Well disclosure certificate, if required, or, if there is no well on the Property, the
Warranty Deed must include the following statement: "The Seller certifies that the
seller does not know of any wells on the described real property".
E. Such other documents as may be reasonably required by Buyer's title examiner or
title insurance company.
7. CLOSING DATE. The closing of the sale of the Property shall take place sixty days
after the date of this Agreement ("Closing") or at an earlier date as mutually agreed by the
parties. The closing shall take place at the city offices of City Brooklyn Center, 6301 Shingle
Creek Parkway,Brooklyn Center,MN 55430. •
404245v1 CBRBR305-109
2
• 8. ENVIRONMENTAL INSPECTION. Seller, prior to vacation of the. Property, shall
remove all substances that, under state or federal law, must be disposed of at an approved
disposal facility. This requirement does not apply to hazardous substances integrated into the
building improvements (e.g., asbestos) or soil but applies only to movable equipment, supplies
and materials that are located or stored on the Property. Buyer and Seller will conduct a joint
inspection of the Property at a time to be mutually agreed upon prior to Closing for the purpose
of identifying materials that must be removed by Seller.
9. LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead
paint disclosure accompanies this Agreement.
10. REAL ESTATE TAXES.
A. Seller will pay at or prior to Closing all real estate taxes due and payable in 2011
and prior years on the Property, including any delinquent real estate taxes.
B. Real estate taxes due and payable in 2012 shall be prorated as of Closing between
Buyer and Seller.
11. SPECIAL ASSESSMENTS.
• A. Seller shall pay on or prior to Closing the balance of all special assessments levied
or pending, including special assessments certified for payment with 2012 real
estate taxes.
B. Seller shall pay any deferred real estate taxes or special assessments, payment of
which is required as a result of the Closing of this sale.
C. As of the date of this Agreement, Seller has not received a notice of hearing for a
new public improvement project from any governmental assessing authority, the
costs of which project may be assessed against the Property. If a notice of pending
special assessment is issued after the date of this Agreement and on or before
Closing, Buyer shall assume payment of all of any such special assessments and
Seller shall provide for payment on date of closing of none of any such special
assessments.
D. Notwithstanding any other provision of this Agreement, Seller shall at all times be
responsible to pay special assessments, if any, for delinquent sewer or water bills,
removal of diseased trees prior to the date of this Agreement, snow removal,or other .
current services provided to the Property by the assessing authority while the Seller
is in possession of the Property.
12. MARKETABILITY OF TITLE. Buyer shall, at its expense and within a reasonable
time after Seller's acceptance of this Agreement, obtain a commitment for title insurance or other
• evidence satisfactory to Buyer ("Title Evidence") for the Property or examine the abstract of
404245v1 CBR BR305-109
3
title. Buyer shall have ten (10) business days after receipt of the Title Evidence to examine the •
same and to deliver written objections to title, if any,to Seller. Seller shall have until the Closing
(or such later date as the parties may agree upon) to make title marketable, at the Seller's
expense. In the event that title to the Property cannot be made marketable or is not made
marketable by the Seller by the Closing, then, at the option of the Buyer,this Agreement shall be
null and void and all Earnest Money will be returned to Buyer, if any.
13. CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) one-half of the
closing fee charged by the title insurance or other closing agent, if any, utilized to close the
transaction contemplated by this Agreement; (b) the title search, name search and assessment
search fees and other fees incurred in preparation of the Commitment for title insurance or other
Title Evidence, update of abstract of title; and (c) any deed transfer taxes and conservation fees
and (d) recording fees for all instruments required to establish marketable title in Seller. Buyer
shall be responsible for the payment of the following costs: (a) recording fees required to enable
the Buyer to record its deed from Seller under this Agreement, (b) title insurance premium, if
any; and (c) one-half of any closing fee charged by the title insurance or other closing agent, if
any, utilized to close the transaction contemplated by this Agreement. Each party shall be
responsible for its own attorneys'fees and costs.
14. POSSESSION/CONDITION OF PROPERTY. Seller shall deliver possession of the
Property to Buyer immediately after Closing. Seller shall remove all personal property not
included in this sale from the Property prior to Closing or when a tenant leaves the premises per
the Buyer's relocation program. Any furniture, fixtures, equipment or other personal property •
remaining at the Property as of Closing shall be deemed the property of Buyer and shall be
conveyed to Buyer via bill of sale at Closing and may be used by Buyer or disposed of by Buyer
as Buyer sees fit. Buyer and Seller will conduct a joint inspection of the Property at a time to be
mutually agreed upon prior to Closing for the purpose of identifying personal property that may'
be reclaimed by Seller at Seller's sole option.
15. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses
that there (is) (is not) an individual sewage treatment system on or serving the Property. If there
is an individual sewage treatment system on or serving the Property, Seller discloses that the
system(is) (is not) in use. In the event there is a sewage treatment system, a map of said location
of the system is attached.
16. WELL DISCLOSURE. Seller discloses that there is/is not a well on or serving the
Property. If a well is present, a well disclosure statement accompanies this agreement.
17. SELLER'S WARRANTIES. Seller warrants that buildings; if any, are entirely within
the boundary lines of the Property. Seller warrants that there is a right of access to the Property
from a public right-of-way. Seller warrants that there has been no labor or material furnished to
the Property for which payment has not been made. Seller warrants that there are no present
violations of any restrictions relating to the use or improvement of the Property. Seller has good
and marketable simple title interest to the Property and no consents or approvals from any third
parties are required. Seller will not renew any existing lease or enter into any new lease after the
date of this Agreement. Seller will not extend any existing lease beyond the date of Closing. •
404245v1 CBR BR305-109
4
. Seller agrees to pay all charges for sewer, water, electric, gas, rubbish removal and cable
television incurred prior to Closing. These warranties shall survive the Closing of this
transaction.
18. RELOCATION BENEFITS. Seller acknowledges: (a) that the Seller is the.owner of
the Property and that the Property is occupied only by a member of Seller's family; (b) that
Seller initiated negotiations with Buyer for the sale of the Property to Buyer,, prior to Buyer
indicating any intent to acquire the Property; and (c) that Buyer has informed Seller in writing
that Buyer will not acquire the property if negotiations fail to result in an amicable agreement.
Seller represents that Seller fully understands Seller's rights regarding state and federal laws and
regulations relating to relocation assistance.
Seller represents that the only occupant of the Property is their son, John Vang,who occupies the
Property as a family member, not as a tenant and not pursuant to any lease agreement.. Seller
warrants that Seller and Seller's son represent and assert that neither Seller nor Seller's son are
eligible for or entitled to any rental assistance, relocation rights or relocation benefits.
Seller and Buyer agree that the purchase price for the Property stated in Section 5 of this
Agreement is inclusive of any and all relocation assistance or benefits to which Seller or any
other party is found or determined to be entitled. Seller agrees to defend.and indemnify Buyer
from any claims for relocation assistance or benefits including but not limited to legal fees, costs
• and expenses of relocation benefits and of providing relocation assistance. This paragraph shall
survive closing.
Seller and Buyer agree that the obligations of this Section are material terms of this Agreement
and that if any part of this Section is determined by a court of competent jurisdiction to be illegal
or unenforceable, this Agreement shall be terminated and of no legal force or affect. Seller will,
at Buyer's option,return the purchase price to Buyer and Buyer will return the Property to Seller.
Seller agrees to accept return of the Property in whatever condition it exists at the time it is
returned, including but not limited to, a condition in which the structures and improvements on
the Property have been demolished or partially demolished.
In the event any party makes a claim for or asserts an entitlement to relocation assistance or
benefits prior to closing,this Agreement shall be void and of no further force or effect.
19. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
warranties contained in this Agreement shall not be merged into any instruments or conveyance
delivered at Closing, and the parties shall be bound accordingly.
20. ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire
agreement between the parties, and no other agreement prior to this Purchase Agreement or
contemporaneous herewith shall be effective except as expressly set forth or incorporated herein.
Any purported amendment shall not be effective unless it shall be set forth in writing and
executed by both parties or their respective successors or assigns.
404245v1 CBR BR305-109
5
21. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure •
to the benefit of the parties and their respective heirs, executors, administrators, successors and
assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller.
22. NOTICE. Any notice, demand, request or other communication which may or shall be
given or served by the partieg shall be deemed to have been given or served on the date the same is
deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
SELLER:. Doua Vang and Lee Vang
6101 Brooklyn Boulevard
Brooklyn Center,MN 55429-3053
BUYER: Economic Development Authority of Brooklyn Center
Attn: Gary Eitel
6301 Shingle Creek Parkway
Brooklyn Center,MN 55430-2113
AGENT: Kennedy&Graven,Chartered
Attn: Corrine Heine
470 U.S.Bank Plaza
200 South Sixth Street
Minneapolis,MN 55402 •
23. BROKER COMMISSIONS. Buyer and Seller each represents and warrants to each other
that there is no broker involved in this transaction with whom either has negotiated or to whom the
representing party has agreed to pay a broker commission or finder's fee in connection with
negotiations for purchase or sale of the Property.
24. SPECIFIC PERFORMANCE. This Agreement may be specifically enforced by the
parties,provided that any action for specific enforcement is brought within six months after the date
of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of
this agreement;the parties reserve all other remedies available at law or in equity.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date written
above.
SELLER
By
Doua Vang
By
Lee Vang .
404245vl CBR BR305-109
6
BUYER
Economic Development Authority of
Brooklyn Center,Minnesota
By:
Its:
By:
Its:
•
404245vl CBR BR305-109
7
•
EDA Agenda Item No. 4b
EDA ITEM MEMORANDUM
DATE: July 2, 2012
TO: Curt Boganey, City Manager
FROM: Gary Eitel,Director of Business &Development 4s-
SUBJECT: Resolution Approving Purchase Agreement and Conveyance of Certain Property
to Real Estate Recycling. (MnDOT Excess R.O.W.)
Recommendation:
It is recommended that the Economic Development Authority conduct the required public
hearing and after the opportunity of receiving public input, consider the approval/adoption of the
Resolution Approving Purchase Agreement and Conveyance of Certain Property to Real Estate
Recycling. (MnDOT Excess R.O.W.)
BACKGROUND:
On December 12, 2011,the EDA considered an offer by MnDOT for the reconveyance of
excess right of way rom the Highway 100 and France Avenue interchange improvements,
Y g Y
referred to as Reconveyance No. 2011-003. The EDA adopted Resolution No. 2011-30,a
Resolution Authorizing the Acquisition of MnDOT Excess Right of Way to Promote,
• Economic Development Opportunities (Former Denny's Restaurant Site).
Attached is a copy of the resolution which references the following:
- The remnant of the former Denny's Restaurant site,a parcel of land comprising
55,345 sq.ft.was offered to the EDA for the appraised amount of$108,300.
- The funding source for this acquisition was identified as TIF District No. 2,per the
amended budget(August 8, 2011)
The development of this 1.27 acre parcel with the adjoining 7.39 acre Life Time
Fitness site would maximize the development opportunities and tax base for the
City.
On May 14,2012,the City Council approved a Planned Unit Development Request by Real
Estate Recycling for France Ave Business Center 4. This PUD plans provided for the
redevelopment of the former Northwest Racquet Club site(now known as the Life Time Fitness
site)and the MnDOT Excess Right of way parcel (the remnants of the former Denny's
Restaurant site) into an 8.75 acre parcel for the construction of a 90,000 sq.ft. office/warehouse
facility with 260 parking stalls.
On June 5, 2012,the MPCA issued the attached No Association Determination to the City of
Brooklyn Center which states that a determination is hereby made pursuant to Minn.State
115B.178,subd.1 that the proposed actions listed(purchase of the site;and,maintenance
of the site)will not associate the City of Brooklyn Center with the identified Release or
threatened release of hazardous substances,pollutants, or contaminants at the site.
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMORANDUM
The City Attorney has prepared the enclosed public hearing notice and a resolution which
approves the purchase agreement and conveyance of the EDA parcel to Real Estate
Recycling with the following findings and determinations:
- The conveyance of the Development Property to the Developer is in the public
interest and will further the objectives of the EDA's general plan of economic
development,and
p ,
- The conveyance will provide an opportunity for increased employment.
opportunities in the City and serve as an impetus for further development.
BUDGET ISSUES:
Real Estate Recycling has offered to purchase this parcel from the City/EDA for MnDOT's
appraised value of$108,300. The sale proceeds from this conveyance will reimburse Tax
Increment District No. 2 and enable the EDA to reinvest these tax increment dollars into other
eligible activities consistent with the TIF 2 budget.
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans
•
I
Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life
for all people and preserves the public trust
• • i
Toro/
Baker Furniture
A .
Caribou Coffee HC
s r n
i1
�
LANE,BREEZE AVE Psi 1 .27 acres
Milli
i
I
excess MnDOT R-O-W
} (to be added)
UiKE51UE AVE.:N
fmr. Lifetime Fitness site
RH�
i �lmaamlw*nMcRW-Ca�rxpetCl toG�+'Ca'xu5 -�s�°=� �•,.n',
Total (combined) area of these two parcels is 8.7 acres
•
NOTICE OF PUBLIC
HEARING
NOTICE is hereby given that
the Board of Commissioners
of the Brookl yn Center
Economic Development
Authority (the "EDA") will
meet at City Hall at 6301
Shingle Creek Pkwy,
Brooklyn Center, Minnesota
(the "City") at or after 7:30
p.m. on Monday, July 9, 2012
to conduct a public hearing on
the proposed sale of certain
real ro ("Property") to
p Pert3' "
( l�rtS'
Real Estate Recycling or an
affiliate, for use as parking to
support a 90,000 square foot
office and warehouse facility.
The Property is located in the
City at the southwest quadrant •
of France Avenue and
Highway 100. The Property is
MNDOT excess right of way
from the Highway 100
improvement project which
abutts 4001 Lake Breeze
Avenue on the east lot line.
The EDA will meet at the
public hearing to determine if
the sale is advisable. A copy
of the terms and conditions of
the proposed sale of the
Property will be on file and
available for inspection at City
Hall durin g regular business
�
hours.
Any person wishing to express
an opinion on the matters to
be considered at the public
hearing will be heard orally or
in writing.
BY ORDER OF THE
BOARD OF
COMMISSIONERS.
406261v1 JSB KG400-1
Commissioner
introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING PURCHASE AGREEMENT AND
CONVEYANCE OF CERTAIN PROPERTY TO REAL ESTATE RECYCLING.
(MnDOT EXCESS R.O.W.)
BE IT RESOLVED by the Board of Commissioners ("Board") ofthe Economic
Development Authority of Brooklyn Center, Minnesota("Authority")as follows:
Section 1. Recitals.
1.01. The Authority was heretofore established by the City of Brooklyn Center,
Minnesota (the "City") pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA
Act"), and is authorized to acquire and convey real property and to undertake certain activities to
facilitate the development of real property by private enterprise.
1.02. To facilitate development of certain property in the City, the Authority
proposes to enter into a Purchase Agreement (the "Contract") between the Authority and Real
Estate Recycling or an affiliate (the "Developer"), under which, among other things, the Authority
will convey certain property located in the City at the southwest quadrant of France Avenue and
Highway 100 (the "Development Property") to the Developer for use as parking to support an
approximately 90,000 square foot office and warehouse facility. The Development Property was
formerly part of the Denny's site at 3901 Lakebreeze Avenue and is MNDOT excess right of way
from the Highway 100 improvement project which abuts 4001 Lakebreeze Avenue on the east lot
line.
1.03. The Authority has on this date conducted a duly noticed public hearing
regarding the sale of the Development Property to Developer, at which all interested persons were
given an opportunity to be heard.
1.04. The Authority finds and determines that conveyance of the Development
Property to the Developer is in the public interest and will further the objectives of its general plan
of economic development, because it will provide an opportunity for increased employment
opportunities in the City and serve as an impetus for further development.
Section 2.Authority Approval;Further Proceedings.
2.01. The Board hereby approves the Contract in substantially the form presented
to the Board, including conveyance of the Development Property to Developer, subject to
modifications that do not alter the substance of the transaction and that are approved by the
President and Executive Director,provided that execution of the Contract by those officials shall be
• conclusive evidence of their approval.
EDA RESOLUTION NO.
•
2.02. Authority staff and officials are authorized to take all actions necessary to
perform the Authority's obligations under the Contract as a whole, including without limitation
execution of any documents to which the Authority is a party referenced in or attached to the
ment
currents necessary to convey the Develop
Contract and an deed mortgage or other do ary Y
Y �
Property to Developer, all as described in the Contract.
July 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 duly passed and adopted.
•
• e following'resolution
Commissioner Kay Lasman . . introduced th g
and moved its adoption:
EDA RESOLUTION NO. 2011-30
RESOLUTION AUTHORIZING THE ACQUISITION OF MN/DOT EXCESS
RIGHT OF WAY TO PROMOTE ECONOMIC DEVELOPMENT
OPPORTUNITIES(FORMER DENNY'S RESTAURANT SITE)
WHEREAS,the Brooklyn Center Economic Development Authority, Minnesota
has hereto established Housing Development and Redevelopment Project No.. 1 and in 1985
established Tax Increment Financing District No. 2 as a redevelopment district to remedy
conditions of economic obsolescence, physical blight, underutilization 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;and
WHEREAS, 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;and
WHEREAS, on August 8, 2011,the EDA amended the Tax Increment Financing
Plan for Tax Increment Financing District No. 2 which enabled .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,
$170,0.00 for public improvements, including intersection improvements, street
lighting,and streetscaping,and
- $60,000 for other EDA authorized Transportation/Land Use Studies;and
WHEREAS, Mn/DOT has offered the reconveyance of the excess right of way,
referred to Reconveyance No. 2011-0038,the remainder of the former Denny's Restaurant Site,
a parcel of land comprising 55,345 sq.ft. for the appraised amount of$108,300;and
WHEREAS, the development of this 1.27 acres in conjunction with the
redevelopment of the 7.39 acre Life.Time Fitness Site will maximize the utilization of this land
and enhance the tax base of the City.
EDA RESOLUTION NO. 2011-30
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 Manager is authorized to proceed with the acquisition of
Mn/DOT's Excess Right of Way from the State Highway 100 and France
Ave. interchange (former Denny's Restaurant Site) for the appraised value of
$108,300.
December 12 2011 .�
Date President
The motion for"the adoption of the foregoing resolution was duly seconded by Commissioner
Dan Ryan'
and upon vote being taken thereon,the following voted in favor thereof:
Tim. Willson, Carol Kleven, Kay Lasman, and Dan Ryan;
and the followingg voted against the same: none;
whereupon said resolution was•declared duly passed and adopted.
i
Minnesota Pollution Control Agency
520 Lafayette Road North St.Paul,MN 55155-4194 i 651-296-6300 ( 800-657-3864 651-282-5332 TTY www.pcastate.mn.us
•
June 5,2012
Mr.Gary Eitel
Business and Development Director
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
RE: France Avenue Business Park Building IV
3901 Lakebreeze Avenue North, Brooklyn Center
MPCA Project Number VP27820
PIN 10-118-21-31-0024 .
No Association Determination
Dear Mr. Eitel:
This letter is in response to the request from Maclay R. Hyde, RER Acquisitions LLC(RER)for a
(� determination under Minn.Stat.§ 115B.178 that certain actions proposed to be taken by the city
of Brooklyn Center(CoBC)at the France Ave Business Park Building IV site,located at the address
referenced above(the Site),will not constitute conduct associating CoBC with the release or threatened
release of hazardous substances, pollutants,or contaminants at the Site for the purpose of
Minn.Stat.§1156.03,subd.3(4) (2010).
The Minnesota Pollution Control Agency(MPCA)staff in the Voluntary Investigation and Cleanup(VIC)
Program has reviewed the documents submitted for the Site. In 1937.,the Site was first developed with
residential homes,and a portion of the Site appeared to have been a low lying property and possibly a
wetland.The dwellings were removed by 1970.A Denny's Restaurant occupied the 1.4-acre Site,at
3901 Lakebreeze Avenue North (PIN 1011821310024),from 1979 until at least 1999.The Site is
underlain by debris-containing fill material which ranges from two feet to 12 feet thick and originated
from multiple unknown sources.
The CoBC will acquire the 1.4-acre former Denny's property(Lot 1, Block 1,Dale and Davies 2nd Addition)
currently owned by the State Department of Transportation.The former Denny's property will then be
sold to RER.This parcel is shown on Attachment B.
In March 2012,soil and groundwater samples were collected through the advancement of soil borings,'
test pits,and.temporary wells; all in conformance with an MPCA-approved Work Plan as part of a
Phase II Environmental Site Assessment.Soil and groundwater samples were analyzed for Volatile
Organic Compounds(VOCs), Polycyclic Aromatic Hydrocarbons(PAHs), Resource Conservation and 3
Recovery Act(RCRA)metals,and Diesel Range Organics(DRO).Soil samples were also analyzed for?4C?�
i (an indicator of the potential presence of dioxins)to determine if the fill soils may have originated from
the nearby Josyln Superfund Site.Groundwater samples were field-filtered prior to being analyzed f
the dissolved metals.
• �v
F �
Mr.Gary Eitel
Page 2
June 5,2012 •
PAHs as measured by Benzo(a)pyrene(BaP)equivalents were identified in the fill soils at up to 1,088
milligrams per kilogram(mg/kg),significantly above the respective Industrial Soil Reference Value(SRV)
of 3 mg/kg.DRO was found in soil samples at levels up to 19,000 mg/kg and was mainly associated with
the presence of elevated PAHs. Metals were detected in the fill soils at levels mostly characteristic of
background concentrations and below the applicable Industrial SRVs and Soil Leaching Values(SLVs).
Naphthalene was detected in the soil samples above its Industrial SRV and SLV.PCP was not detected in
any of the submitted soil samples.
Barium and DRO were detected in each groundwater sample at up to 130 micrograms per liter(µg/Q
and 220µg/L respectively.The barium levels were all below its Minnesota Department of Health(MDH)
established Health Risk Limit of 2,000 pg/L.
For the purpose of this letter,the identified release at the Site is defined as the PAHs and naphthalene in
the soil and the barium in the groundwater(Identified Release).
Based upon a review of information provided to the MPCA VIC Program,and subject to the conditions
set forth in this letter,a determination is hereby made pursuant to Minn.Stat;§1156.178,subd.1 that
the Proposed Actions listed below will not associate CoBC with the Identified Release for the purpose of
Minn.Stat.§115B.03,subd.3(4) (2010).This determination applies only to the following Proposed
Actions:
• Purchase of the Site; and, •
• Maintenance of the Site.
This determination is made in accordance with Minn.Stat.§115B.178,subd.1,and is subject to the
following conditions:
1. The Proposed Actions shall be carried out as described herein;
2. CoBC shall cooperate with the MPCA,its employees,contractors,and others acting at the
MPCA's direction,in the event that the MPCA takes,or directs others to take,response actions
at the Site to address the Identified Release or any other as yet unidentified release or
threatened release of a hazardous substance, pollutant,or contaminant,including,but not
limited to,granting access to the Site so that response actions can be taken;and,
3. CoBC shall avoid actions that contribute to the Identified Release or that interfere with response
_
actions required under any MPCA approved response action plan.to address the Identified
Release.
Mr.Gary Eitel
Page 3
June 5,2012
Pursuant to Minn.Stat.§ 1156.178,subd.1,when CoBC takes the Proposed Actions in accordance with
the determination in this letter,subject to the conditions stated herein,the Proposed Actions will not
associate CoBC with the Identified Release for the purpose of Minn.Stat.§ 115B.03,subd.'3(4) (2010).
Please be advised that the determination made in this letter is subject to the disclaimers found in
Attachment A and is contingent on compliance with the terms and conditions set forth herein.
If you have anyfquestions about the contents of this letter, please contact David Knight, Project Leader,
at 651-757-2857 or John Betch"er, Hydrogeologist,at 651-757-2226.
ncerely,
Han Neve
Supervisor
VIC and Emergency Response Section
Remediation Division
H N:csa
Attachments
cc: Wade Anderson,Attorney,Gray, Plant Mooty
Chris Thompson, Braun Intertec.
Paul Hyde,RER Acquisitions, LLC
Mac Hyde, RER Acquisitions, LLC