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HomeMy WebLinkAbout2012 08-13 EDAP Regular Session . EDA MEETING City of Brooklyn Center August 13, 2012 AGENDA L 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. July 9, 2012—Regular Session • 4. Commission Consideration items a. Resolution Approving Consent to Assignment of TIF Note (Twin Lakes Business Park) Requested Commission Action: —Motion to adopt resolution. 5. Adjournment • • EDA Agenda Item No. 3a i • MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JULY 9,2012 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 7:52 p.m. 2. ROLL CALL President Tim Willson and Commissioners Carol Kleven, Kay Lasman, and Lin Myszkowski. Absent and excused was Commissioner Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel,Planning and Zoning Specialist Tim Benetti, 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. April 23,2012—Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2012-10 AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILITATE NEIGHBORHOOD IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITIES WITHIN THE BROOKLYN BOULEVARD CORRIDOR(6101 BROOKLYN BOULEVARD) Director of Business and Development Gary Eitel introduced the item, discussed the history, and stated the purpose of the proposed resolution to acquire 6101 Brooklyn Boulevard, a commercially zoned 20,307 sq. ft. corner lot and single-family residence. He displayed an aerial view of the subject site and described the use of surrounding properties, noting the location of 07/09/12 -1- DRAFT lots under EDA ownership. If approved for acquisition as part of the reimaging of Brooklyn • Boulevard Corridor, it would be purchased with Tax Increment District No. 3 Housing Account funds. The EDA indicated its intent was not to force residents from their homes but, rather, to acquire the property only as it becomes available. Mr. Eitel clarified the purchase agreement provides the owner is responsible for all relocation benefits and once purchased the City would move forward to demolish the structure. Commissioner Lasman moved and Commissioner Myszkowski seconded adoption of RESOLUTION NO. 2012-10 Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor(6101 Brooklyn Boulevard). Motion passed unanimously. 4b. PUBLIC HEARING ON PROPOSED SALE OF CERTAIN REAL PROPERTY ("PROPERTY") TO REAL ESTATE RECYCLING OR AN AFFILIATE FOR USE AS PARKING TO SUPPORT 90,000 SQUARE FOOT OFFICE AND WAREHOUSE FACILITY (SOUTHWEST QUADRANT OF FRANCE AVENUE NORTH AND T.H. 100) Mr. Eitel introduced the item, discussed the history, and stated the purpose of the proposed • resolution to sell excess right-of-way from the Highway 100 and France Avenue interchange improvement to Real Estate Recycling to promote economic development opportunities. He displayed an aerial view of the subject site and the approved development and site plan. Mr. Eitel presented the findings for considering sale of this property and noted this item is scheduled for Public Hearing at tonight's meeting. Commissioner Lasman moved and Commissioner Myszkowski seconded to open the Public Hearing. Motion passed unanimously. Paul Hyde, representing Real Estate Recycling, provided an update on contamination remediation and stated he is grateful for the staff time invested in this project. President Willson reviewed recent redevelopment projects that have resulted in the creation of many job opportunities, noting Mr. Hyde's project is another stimulating project to benefit the City's residents. Mr. Hyde stated this is the first new industrial building constructed in Brooklyn Center in five years and using an in-fill site. He announced its first tenant will take possession December 1, 2012, with over 100 jobs and other prospects are interested in the balance of the site. Mr. Hyde congratulated the EDA for its successful redevelopment work. 0.7/09/12 -2- DRAFT • Commissioner Lasman moved and Commissioner Kleven seconded to close the Public Hearing. The EDA discussed its support for this redevelopment project located at the City's entrance and thanked Mr. Hyde for working cooperatively to accommodate residents' concerns. The EDA also thanked City staff for its commitment to the City's redevelopment efforts. Motion passed unanimously. 1. RESOLUTION NO. 2012-11 APPROVING PURCHASE AGREEMENT AND CONVEYANCE OF CERTAIN PROPERTY TO REAL ESTATE RECYCLING(MN/DOT EXCESS R.O.W.) Commissioner Lasman moved and Commissioner Myszkowski seconded adoption of RESOLUTION NO. 2012-11 Approving Purchase Agreement and Conveyance of Certain Property to Real Estate Recycling(Mn/DOT Excess R.O.W.) Motion passed unanimously. Executive Director Curt Boganey announced the City received notice from the Metropolitan Council that it has approved the Comprehensive Plan amendment for the Maranatha project. S. ADJOURNMENT Commissioner Lasman moved and Commissioner Myszkowski seconded adjournment of the Economic Development Authority meeting at 8:14 p.m. Motion passed unanimously. 07/09/12 -3- DRAFT EDA Agenda Item No. 4a • • EDA ITEM MEMORANDUM DATE: August 7,2012 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business&Developments SUBJECT: Resolution Approving Consent to Assignment of TIF Note (Twin Lakes Business Park) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Approving Consent to Assignment of TIF Note (Twin Lakes Business Park) Background: Tax Increment District No. 4 is a soils district that was established in 1999 to assist in certain public redevelopment costs and environmental clean-up costs of contaminated soils associated with redevelopment of this 29.26 acres into the Twin Lakes Business Park. The Tax Increment Development Agreements between the Brooklyn Center Economic Development Authority and Twin Lakes Business Park (Real Estate Recycling) established two Tax Increment Revenue Notes: . A 1999 Note for$1,666,143 which was assigned to the Joslyn Manufacturing Company by consent of the EDA on June 12, 2002,and A 2002 Note for$758,056 to Twin Lakes Business Partnership. Section 5.2 of the Tax Increment Agreement does require that these Notes are not assignable without written consent of the Authority. Resolution Approving the Consent to Assignment of TIF Note: The City Attorney has prepared the attached resolution which includes the following items for the EDA's consideration relative to the consent necessary for the reassignment of the 1999 TIF Note and the disbursement of the August 2012 Tax Increment payment 1. Acknowledgement that Joslyn Manufacturing has agreed to the reassignment of the 1999 TIF Note to Twin Lakes Business Park, LLC. 2. Receipt of an Affidavit of Lost Tax Increment Financing Note and Indemnity Agreement and replacement with a new Amended Tax Increment Revenue Note. 3. Authorizes the President and Executive Director to execute a consent to the Reassignment of the TIF Note and a Replacement TIF Note on behalf of the EDA. 4. Confirmation of the Developer's written direction to apply $76,252 of the August, 2012 payment of the TIF Note to the satisfaction/repayment of the Environmental Testing Loan Promissory Note , dated July 27, 2011 (former Howe Fertilizer site) Mission:Ensuring an attractive,clean,safe,inclusive conintunity that enhances the quality of life for all people and preserves the public trust EDA ITEM MEMORANDUM Budget Issues: • There are no budget issues relating to the request for reassignment of this TIF Revenue Note. The Tax Increment Agreement provides for 97.5% of the annual tax increment, (net of fiscal disparity reductions)to be applied to the retirement of these two Pay-As-You-Go Notes and that the obligation matures when the district is decertified in 2020. Any unpaid principal remaining at that time is canceled. 2.5% of the annual tax increment (approx.$8,831 in 2011) is retained by the EDA as an Administrative Fee. Council Goals: Strategic: 1. We will proceed aggressively with implementation of City's redevelopment plans Ongoing: 2. We will ensure the financial stability of the City • • Mission:Ensuring an attractive,clean,safe,inclusive conununity that enhances the quality of life for all people and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING CONSENT TO ASSIGNMENT OF TIF NOTE(TWIN LAKES BUSINESS PARK) BE IT RESOLVED By the Economic Development Authority ("Authority") of Brooklyn Center("City")as follows: Section 1. Recitals. 1.01. The Authority entered into a Development Agreement dated April 27,1999,as amended by a First Amendment to Development Agreement dated May 28, 2002 (collectively, the "Agreement") with Twin Lakes Business Park, LLC, a Minnesota limited liability company ("Developer"),concerning the property described in the Agreement. 1.02. The Authority issued a Tax Increment Revenue Note (Twin Lakes Business Park)to the Developer on December 17, 1999,as amended on June 12,2002,pursuant to Amended Tax Increment Revenue Note (Twin Lakes Business Park) (collectively, the "TIF Note"), and the • Developer assigned its interests in the TIF Note to Joslyn Manufacturing Company ("Joslyn") pursuant to a Pledge Agreement dated as of June 15, 1999, as amended, an Assignment dated December 17, 1999, as amended (the "Assignment"), and Amended Irrevocable Instructions for Delivery of Notes dated as of June 12, 2002. 1.03. Joslyn has agreed to assign the TIF Note to the Developer effective July 6,2012, pursuant to a Purchase Agreement dated April 3, 2012 and an Assignment dated as of July 6, 2012 (collectively,the"Reassignment"). 1.04. The TIF Note has been lost or misplaced and Joslyn has provided the Authority an Affidavit of Lost Tax Increment Financing Note and Indemnity Agreement. 1.05. The Developer and Joslyn have requested that the Authority consent to Reassignment of the TIF Note pursuant to and in compliance with the terms of the Agreement and issue a replacement TIF Note. -Section 2. AuthorityApproval-, Further Proceedings. 2.01 The recitals set forth in the preamble to this Resolution are incorporated into this Resolution as if fully set forth herein. 2.02. The Authority hereby consents to the Reassignment of the TIF Note. 2.03. The President and the Executive Director are hereby authorized to execute a • consent to the Reassignment of the TIF Note and a replacement TIF Note on behalf of the Authority and Authority staff and consultants are authorized to create all required agreements and take all necessary actions in furtherance of this Resolution and the Agreement. 2.04. The Authority has received written direction from the Developer to apply $76,252 of the August,2012 payment of the TIF Note to the repayment in full of the Environmental Testing Loan Promissory Note, dated July 27, 2011, issued to the Authority by MBC II, LLC, an affiliate of the Developer. The Authority authorizes the Finance Director to reduce the August,2012 P g , ty payment of the TIF Note to the Developer by$76,252 and apply such amount as directed above. Such $76,252 amount is credited to and deemed paid pursuant to the TIF Note the same as if such amount had been paid directly to the Developer. 2.05 The approvals and actions contemplated by this Resolution are subject to the condition that Developer pay all costs associated with this Resolution,the Agreement, documents and actions set forth herein. Approved by the Economic Development Authority of Brooklyn Center. August 13,2013 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. • $1,666,143 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY AMENDED TAX INCREMENT REVENUE NOTE (TWIN LAKES BUSINESS PARK) The Brooklyn Center Economic Development Authority (the "Authority"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described(the"Payment Amounts") to Twin Lakes Business Park, LLC, a Minnesota limited liability company (the "Developer"), or its registered assigns(the "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. THIS NOTE REPLACES A LOST AMENDED TAX INCREMENT REVENUE NOTE (TWIN LAKES BUSINESS PARK) DATED AS OF JUNE 12, 2002 (THE "ORIGINAL NOTE") WHICH IS HEREBY DEEMED CANCELLED AND THE REGISTERED OWNER ACKNOWLEDGES THAT THE AUTHORITY HAS NO FURTHER OBLIGATION TO MAKE ANY PAYMENTS UNDER SUCH ORIGINAL NOTE. The principal amount of this Note shall equal from time to time the principal amount • stated above, as reduced to the extent that such principal installments shall have been paid in whole or in part, including amounts paid prior to the date hereof in accordance with the Original Note,pursuant to the terms hereof and as provided in that certain Development Agreement, dated as of April-,27, 1999, as the same may be amended from time to time (the "Development Agreement"), by and between the Authority and the Developer. The unpaid principal amount hereof shall bear interest from the date of this Note at the simple,non-compounded rate of eight percent (8.00%)per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve(12) 30-day months. The amounts due under this Note shall be payable on each February 1 and August 1 (the "Payment Dates"), commencing on the February 1 or August l first occurring after the date of issuance of the Original Note and thereafter to and including the earlier of(a) the February 1 or August 1 on which the principal of this Note is paid in full, or (b) the first February l or August 1 following termination of the Tax Increment District No. 4 (the "Final Payment Date"). This Note is issued on a parity with the Authority's Amended Tax Increment Revenue Note No. 2 (Twin Lakes Business Park) dated June 12, 2002 (the"Parity Note"). On each Payment Date the Authority shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day preceding such Payment Date an amount equal to a pro rata share (based on the outstanding principal of this Note and the Parity Note) of 97.50% of the Tax Increments (as hereinafter defined) received by the Authority during the six month period preceding such Payment Date. The payments shall be applied first to accrued interest and then to reduce the principal of this Note. • 408810v1 JSB BR291-321 The Payment Amounts due hereon shall be payable solely from a pro rata share of tax increments (the "Tax Increments") from Tax Increment District No. 4 (the "Tax Increment • District")which are paid to the Authority and which the Authority is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from time to time (the "Tax Increment Act"). This Note shall terminate and be of no further force and effect following the Final Payment Date defined above, on any date upon which the Authority shall have terminated the Tax Increment Development Agreement under Section 4.2(b) thereof, the date the Tax Increment District is terminated, or on the date that all principal and interest payable hereunder shall have been paid in full, whichever occurs earliest. The Authority makes no representation or covenant, express or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The Authority's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable if said Event of Default shall thereafter have been cured; and further, if pursuant to the occurrence of an Event of Default under the Development Agreement the Authority elects to cancel and rescind the Development Agreement, the Authority shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 4.2 thereof, for a fuller statement of the rights and obligations of the Authority to pay the principal of this Note, and said • provisions are hereby incorporated into this Note as though set out in fall herein. This Note is a special, limited revenue obligation and not a general obligation of the Authority and is payable by the Authority only from the sources and subject to the qualifications stated or referenced herein. This Note is not a general obligation of the City of Brooklyn Center, Minnesota(the"City") or Authority, and neither the full faith and credit nor the taxing powers of the Authority or the City are pledged to the payment of the principal of or interest on this Note and no property or other asset of the Authority, save and except the above-referenced Tax Increments, is or shall be a source of payment of the Authority's obligations hereunder. This Note is issued by the Authority in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including the Tax Increment Act. This Note may be assigned only with the consent of the Authority. In order to assign the Note, the assignee shall surrender the same to the Authority either in exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the Authority. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have • 408810v1 JSB BM91-321 2 happened, and have been performed in regular and due form, time, and manner as required by • law; and that this Note, together with all other indebtedness of the Authority outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, Brooklyn Center Economic Development Authority has caused this Note to be executed by the manual signatures of its President and Executive Director and has caused this Note to be dated as of August 13,2012. President Executive Director • • 408810v1 JSB BR291-321 3 CERTIFICATION OF REGISTRATION • It is hereby certified that the foregoing Note was registered in the name of Twin Lakes Business Park, LLC, and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF DATE OF SIGNATURE OF REGISTERED OWNER REGISTRATION EXECUTIVE DIRECTOR Twin Lakes Business Park LLC 90 South 7 th Street Suite 3725 Minneapolis, MN 55402 August 13, 2012 • • 408810vi JSB BP291-321 4