HomeMy WebLinkAbout2013 10-28 EDAPEDA MEETING
City of Brooklyn Center
October 28, 2013 AGENDA
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.August 26, 2013 — Regular Session
2.August 26, 2013 — Executive Session
4. Commission Consideration Items
a.Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor (6927 Brooklyn Boulevard)
Requested Commission Action:
—Motion to adopt resolution.
b.Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor (6107 Brooklyn Boulevard)
Requested Commission Action:
—Motion to adopt resolution.
c. Resolution Authorizing the City of Brooklyn Center's Economic Development
Authority to Support, Apply for and Enter Into a Minnesota Department of
Employment and Economic Development's Minnesota Investment Fund
Application on Behalf of Sign Zone Inc./Palmer Lake BC, LLC for the benefit of
the Palmer Lake Plaza Facilities and Property, Located at 6850 Shingle Creek
Parkway, Brooklyn Center, Minnesota, 55430
Requested Commission Action:
—Motion to adopt resolution.
EDA AGENDA -2- October 28, 2013
d. Resolution Authorizing the Use of Tax Increment District 3 Housing Funds for
Site Improvements Relating to the Lake Pointe Parking Lot Improvements
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
AUGUST 26, 2013
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 7:31 p.m.
2.ROLL CALL
President Tim Willson and Commissioners Carol Kleven, Kris Lawrence-Anderson, Lin
Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Interim
Finance Director Greg Andrews, Public Works Director/City Engineer Steve Lillehaug, Director
of Business and Development Gary Eitel, City Attorney Charlie LeFevere, and Carla Wirth,
TimeSaver Off Site Secretarial, Inc.
3.APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Ryan moved and Commissioner Kleven seconded approval of the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. June 10, 2013 — Regular Session
Motion passed unanimously.
4.COMMISSION CONSIDERATION ITEMS
4a. DISCUSS THE OPPORTUNITY TO PURCHASE REAL PROPERTY LOCATED
AT LOT 1, BLOCK 1, BROOKDALE SQUARE 2 ND ADDITION, THE 22.3 ACRE
BROOKDALE SQUARE COMMERCIAL CENTER (REDEVELOPMENT
WITHIN THE OPPORTUNITY SITE)
President Willson indicated that under the exceptions to the Open Meeting law, the EDA may
elect to adjourn to Closed Executive Session regarding the purchase of real property located at
Lot 1, Block 1, Brookdale Square 2 " Addition [Minn. Stat. § 13D.05, subd. 3 (c)].
08/26/13 -1- DRAFT
5. ADJOURNMENT
Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded adjournment of
the Economic Development Authority meeting to Closed Executive Session at 7:33 p.m.
President Willson announced that the EDA would adjourn from the Closed Executive Session
and not reconvene following the Closed Executive Session.
City Attorney Charlie LeFevere stated the Closed Executive Session meeting will the tape
recorded and the meeting minutes will reflect who is in attendance and the property under
discussion.
Motion passed unanimously.
08/26/13 -2- DRAFT
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
CLOSED EXECUTIVE SESSION
AUGUST 26, 2013
CITY HALL — SHINGLE CREEK CONFERENCE ROOM
1.CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Closed Executive Session
called to order by President Tim Willson at 7:38 p.m.
It was noted that under the exceptions to the Open Meeting law, the EDA may meet in Closed
Executive Session regarding the purchase of real property located at Lot 1, Block 1, Brookdale
Square 2 nd Addition [Minn. Stat. § 13D.05, subd. 3 (c)].
2.ROLL CALL
President Tim Willson and Commissioners Carol Kleven, Kris Lawrence-Anderson, Lin
Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Interim
Finance Director Greg Andrews, Director of Business and Development Gary Eitel, City
Attorney Charlie LeFevere, and Carla Wirth, TimeSaver Off Site Secretarial, Inc.
3.DISCUSS THE OPPORTUNITY TO PURCHASE REAL PROPERTY LOCATED
AT LOT 1, BLOCK 1, BROOKDALE SQUARE 2 ND ADDITION, THE 22.3 ACRE
BROOKDALE SQUARE COMMERCIAL CENTER (REDEVELOPMENT
WITHIN THE OPPORTUNITY SITE)
Following presentation by Director of Business and Development Gary Eitel, the EDA discussed
the opportunity to purchase real property located at Lot 1, Block 1, Brookdale Square 2 nd
Addition, the 22.3 acre Brookdale Square Commercial Center, and asked questions of staff.
4.ADJOURNMENT
President Willson declared the Economic Development Authority Closed Executive Session
adjourned at 8:18 p.m.
08/26/13 -1- DRAFT
EDA Agenda Item No. 4a
EDA ITEM MEMORANDUM
DATE: October 14, 2013
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business and Development
SUBJECT: Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor (6927 Brooklyn Boulevard)
Recommendation:
It is recommended that the City Council consider approval/adoption of the Resolution
Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and
Redevelopment Opportunities within the Brooklyn Boulevard Corridor (6927 Brooklyn
Boulevard.)
Background:
6927 Brooklyn Boulevard is an interior lot developed in 1953 with a single family residence and
detached garage on a 9,280 sq.ft lot. The property has 75 feet of frontage on Brooklyn
Boulevard, which is identified in the City's Comprehensive Plans as a minor arterial roadway
with traffic volume in this area in the range of 40,000 average daily trips.
The property is located in an area of transition with commercial uses to the east and south:
- Boulevard Market, a commercial PUD on the east side of Brooldyn Boulevard that
includes a Culvers restaurant, Super America gas & convenience station, and a multi-
tenant strip center.
Slim's Pizza, the 2012 renovation of the former Starbuck Coffee shop, which included
the acquisition and removal of an adjacent blighted property to facilitate an expansion of
their parking lot.
The property to the west includes two single family residences that access unto Lee Ave. and are
the eastern edge of a single family neighborhood of approximately 25 residences,
The adjacent properties to this lot include a single family residence at 6921 Brooklyn Boulevard
(adjacent to Slims Pizza's parking lot) and an EDA owned vacant lot (6933 Brooklyn Boulevard)
that is adjacent to a rental property, located at 6939 Brooklyn Boulevard. These lots have a
similar lot depth of 127 feet.
There is a concrete median which separates the north and south bound travel lanes between 69 th
Ave. N. and 70 th Ave. N. and a median at the intersection with 69 th Ave. Access movement for
the corner commercial lot is restricted to south bound and west bound traffic movement. Access
to this lot and adjacent properties is limited to south bound travel only.
The assemblage of this residential lot with the two remaining lots along this portion of Brooklyn
Boulevard and the two lots to the rear provide a critical mass or property size that could
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
accommodate either a mid —density residential project that complements the apartments to the
north or a commercial/office project should a frontage road with full access at the 70 th
intersection be developed to serve these properties.
The challenge with the commercial land use includes the economic viability of land assemblage
and spreading the street construction costs and intersection improvements over a small
developable area.
The voluntary acquisition of this property is consistent with the Brooklyn Boulevard corridor
studies and the City's Comprehensive Plan which recognized the significance of the removal of
single family residences and their driveway from this highly visible and traveled roadway. as a
major contributor to the reimaging of the City and promoting future redevelopment opportunities
that will strengthen the adjoining residential neighborhoods and enhance the quality of life
within the community at large.
Purchase Agreement::
The City's Assessor records indicate the last real estate sale was in 2002 to the present owner the
amount of $139,900.
The assessed valuation over the last 2 years is:
2012 $105,900
2013 $100,100
The 2014 assessed valuation of this property, as viewed as of January 1, 2013, is not available at
this time; however, it our understanding that it will be increased to reflect a value similar to 6915
Brooklyn Boulevard which sold for $108,000 on April 25, 2012.
The attached purchase agreement has been accepted by the property owners and provides for an
acquisition using the 2012 assessed valuation of $105,900 and includes $7,250 in eligible
relocation costs.
The memorandum from Dan Wilson, Wilson Development Services, a relocation specialist that
has been used by the EDA to ensure compliance with all State and Federal relocation
requirements, identifies the relocation benefits that the property owners are entitled to receive.
It is the EDA's intention to have the structures and driveway entrance removed, with the land
combined with the adjacent EDA parcel for future redevelopment...
Budget Issues:
The costs for the acquisition, removal of the structures, and lot restoration, are proposed to be
funded by the TIF 3 Housing Fund as part of the City's program for neighborhood stabilization
and to promote future redevelopment opportunities within the Brooklyn Boulevard Conidor.
In the event this property is sold for commercial development, the proceeds of the sales would be
used to reimburse the Housing Fund.
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
Strategic Priorities:
Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for people and preserves the public trust
AMER "r
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I 5927 Brooklyn Boulevard I
Dean & Lola Little Residence
October 22, 2013
Override 1 = Red: Band_l
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CLOGIS 2013
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Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILIATE
NEIGBHORHOOD IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITIES WITHIN
THE BROOKLYN BOULEVARD CORRIDOR (6927 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:
O To enhance the tax base of the City
O To provide maximum opportunity, consistent with the needs of the City, for
development by private enterprise
O To better utilize vacant or underdeveloped land
O To attract new businesses
O To acquire blighted or deteriorated residential property for rehabilitation or
clearance and redevelopment
O 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:
O Acquisition of Single and Multi-Family Housing
O Rehabilitation of Single and Multi-Family Housing
O Environmental Remediation of Single and Multi-Family Housing Properties,
and;
WHEREAS, real property located at 6927 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 the amount of $113,150 ($105,900 purchase price plus relocation
costs of $7,250); 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.
October 28, 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.
PURCHASE AGREEMENT
1.PARTIES. This Purchase Agreement ("Purchase Agreement") is entered into this
day of , 2013, by and between Dean J. Little and Lola L. Little, husband and wife
("Seller") ("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 6927 Brooklyn Blvd. Brooklyn Center, MN 55429, Hennepin County, Minnesota and
legally described as follows:
Lot 3, Block 1, Sunset Manor.
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.
4.1 RESIDENTIAL RELOCATION: The sale price is inclusive of any and all residential
relocation financial assistance afforded and due the Seller's in full compliance with MS 117.52.
5.PURCHASE PRICE AND TERMS:
A.PURCHASE PRICE: The total Purchase Price ("Purchase Price") for the
Property is One Hundred Thirteen Thousand One Hundred Fifty and No/100ths Dollars
($113,150.00).
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.
433155v2 CBR BR305-123 1
(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.
e. 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 12 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 November 5,
2013 ("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.
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.
433155v2 CBR BR305-123
2
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 2012
and prior years on the Property, including any delinquent real estate taxes.
B.Real estate taxes due and payable in 2013 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.
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
title. Buyer shall have ten (10) business days after receipt of a fully executed purchase
agreement and 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. Buyer will pay: (a) all closing fees
charged by the title insurance or other closing agent, if any, utilized to close the transaction
433155v2 CBR BR305-123
3
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; e) recording
fees required to enable the Buyer to record its deed from Seller under this Agreement, (f) title
insurance premium, if any. Each party shall be responsible for its own attorneys' fees and costs.
14.POSSESSION DATE/CONDITION OF PROPERTY. Seller shall deliver possession
of the Property to Buyer no later than 12:00 A.M. on November 13, 2013 ("Possession Date").
Any furniture, fixtures, equipment or other personal property remaining at the Property as of the
Possession Date shall be deemed the property of Buyer 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 Possession Date 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.
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.
433155v2 CBR BR305-123 4
Seller represents that the only occupants of the Property are themselves, their son, their daughter
and son-in-law ("Family Members") and that the Family Members occupy the Property as family
members, not as tenants and not pursuant to any lease agreement. Seller warrants that Seller and
Seller's Family Members represent and assert that neither Seller nor Seller's Family Members
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.
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 parties 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:
433155v2 CBR BR305-123
5
Z)r
Dean J. Little
By
By
SELLER:
BUYER:
AGENT:
Dean J. Little and Lola L. Little
6927 Brooklyn Boulevard
Brooklyn Center, MN 55429-3053
Economic Development Authority of Brooklyn Center
Attn: Gary Eitel
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2113
Kennedy & Graven, Chartered
Attu: Charles LeFevere
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
BUYER
Economic Development Authority of
Brooklyn Center, Minnesota
By:
Its: President
433155v2 CB12 -13R305-123 6
By:
Its: Executive Director
433155v2 CBR BR305-123
OFFICE 952.448.4630
.111111114i WI LON CHASKA, MINNESOTA 55318
510 N. CHESTNUT STREET
FAX 952.448.4676
SUITE 200
800.448.4630
DEVELOPMENT SERVICES LLC WWW.WILSONDEVELOPMENTSERVICES.COM
October 18, 2013
Mr. Dean & Mrs. Lola Little
6927 Brooklyn Blvd.
Brooklyn Center, MN 55430
Re: Purchase Agreement Summary
Dear Dean & Lola:
I am writing to provide you with an overview or summary of important terms of your Purchase
Agreement with the City that we discussed on Thursday.
1) Price of $113,150.00
This is a combination of the acquisition price for the house and land at $105,900.00. Also your
relocation benefits totaling $7,250.00 will be paid at closing. The specific relocation costs are as
follows:
Move to Babbitt, MN
Action Moving - Prof. Mover $ 4,545.15
Convert gas stove to propane $ 250.00
Washer Dryer hook-up $ 150.00
Satellite TV hook-up $ 85.00
Internet Svc hook-up $ 85.00
Handicap Related
Stairwell railing $ 125.00
Grab bars $ 250.00
(2) Driver License change $ 27.00
Subtotal $ 5,517.15
Incidental Closing Cost on Replacement House
House inspection $ 235.00
Closing & Recording Costs $ 1.500.00
Subtotal $ 1,735.00
Total $ 7,252.15
Round-off $ 7,250.00
Sincere
frv
Closing Date: Tuesday, November 5, 2013
Closing Location: Brooklyn Center City Hall
Cathy Rocklitz with Kennedy-Graven will contact you regarding closing details. If you have any
questions, she can be reached at 612-337-9250.
3)Possession Date: Wednesday, November 13, 2013
This is the day we agreed that you will have all of your personal property removed from the
house. I received an email from Rachel at Action Moving that they will have everything moved
out on Monday, November 11th and delivered to Babbitt on Tuesday.
4)The real estate taxes for 2013 regarding your current house will be prorated to the date of
closing. Since, you have already paid the 2013 taxes you will receive a refund for the period
from November 5, 2013 to December 31, 2013.
5)The City is paying the expense to review the title to your home, closing costs, and recording
fees.
6)The Brooklyn Center EDA will not be able to take action on your purchase agreement until
Monday, Oct. 28, 2013. A signed copy of the Purchase Agreement will be returned to you on
the 29th. Unfortunately, until the Purchase Agreement is approved by the EDA, the Purchase
Agreement is not enforceable.
7) After closing on November 5, 2013, remember to cancel your homeowner's insurance policy on
the house. Tell your insurance agent that you won't be vacating until November 11, so that your
personal property remains insured after closing.
Enclosed is the attorney's letter that you permitted me to remove for copying from your closing file
when you purchased your home in June of 2002. Upon closer review, the letter actually was from 1976
and was not relevant.
If you have any questions or concerns, please call me.
Daniel H. Wilson
Acquisition & Relocation
Consultant for City of Brooklyn Center
cc: Gary Eitel, City of Br. Center
Cathy Rocklitz, Kennedy Graven
End: Attorney letter
EDA Agenda Item No. 4b
--
EDA ITEM MEMO NDUM
DATE: October 28, 2013
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business & Development
SUBJECT: Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor. (6107 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. (6107 Brooklyn
Boulevard)
Background:
On September 28, 1998, the City Council approved a PUD/C-2 rezoning application by Mr.
William Bartram, the owner of the Brookdale Chrysler Plymouth Dealership which involved the
following properties:
6127 Brooklyn Boulevard, the dealership facilities owned by Chrysler Realty
Corporation, a C-2 (commerce) commercially zoned lot consisting of 4.5 acres, and
6107 Brooklyn Boulevard, a C-1 (service/office zoned lot of approximately 25,600 sq.ft.
(100' x 256') that was owned by William Bartram. Note: City records indicate a
demolition permit was issued in April, 1998 to remove the residence and detached
garage.
This PUD application included the following expansions of the dealership:
An 8,500 sq.ft. building expansion for automobile services and repair,
A 1,100 sq.ft. car wash
The construction of a 100'x180'parking lot, as an interim use on the 6107 Brooklyn
Boulevard lot
The tax records indicate that Luther Company LTD Partnership acquired the lot at 6107
Brooklyn Boulevard on November 1, 2001 for the amount of $302,776.
The current assessed valuation for taxes payable in 2013 is $350,000.
On August 20, 2012, the EDA acquired the adjoining lot at 6101 Brooklyn Boulevard, a 20,307
sq.ft. corner lot that is zoned C-1 (service/office). This purchase was a voluntary sales for
$113,398 and did involve additional costs associated with the demolition of the residence and
detached garage.
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
Additionally, at the August 26, 2013 City Council Work Session, the City Council discussed the
opportunity to acquire the auto dealership site at 6121 Brooklyn Boulevard as part of the
reimaging of Brooklyn Boulevard. The majority consensus of the City Council/EDA was to
authorize staff to meet with the property owners and negotiate a purchase agreement, which we
believe will be available for the November 12 EDA.
The acquisition of these properties along Brooklyn Boulevard are consistent with the Community
Image Objectives as identified in the 2030 Comprehensive Plan:
0 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.
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.
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.
Mission: Ensuring an attractive, clean, saft, inclusive community that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMO NDUM
Bargain Sales Agreement:
The Luther Company LLLP, formerly the Luther Company Limited Partnership, is offering to
sell their property at 6107 Brooklyn Boulevard to the EDA for a purchase price of $150,000 with
the balance of the appraised valuation of the lot being considered as a gift to the EDA.
A closing date has been set for December 6, 2013.
Budget Issues:
The acquisition and the demolition costs of the parking lot improvements are eligible
expenditures and will be funded from the Tax Increment District No. 3 Housing Account, which
has a fund balance of approximately $700,000.
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.
Strategic Priorities:]
e Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive community 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 AUTHORIZING THE ACQUISITION OF PROPERTY TO FACILIATE
NEIGBHORHOOD IMPROVEMENTS AND REDEVELOPMENT OPPORTUNITIES
WITHIN THE BROOKLYN BOULEVARD CORRIDOR (6107 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 development by private enterprise
•To better utilize vacant or underdeveloped land
•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 6107 Brooklyn Boulevard (the "Subject
Property") is a voluntary sale by the property owner; and
WHEREAS, the EDA acknowledges that the purchase price of $150,000 is less
than the assessed value of the subject property and that the difference in the value between the
purchase price and the appraised market value of the subject property is a charitable gift form the
seller to the EDA
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 bargain 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 bargain purchase agreement, and the Executive Director is authorized
and directed to take all such further steps as are necessary to effect the terms
thereof.
October 28, 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.
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•Buy-Right Auto -6121
Brooklyn Blvd.
•
36 '43606
Luther Company - 6107
• Brooklyn Blvd.
BARGAIN SALE AGREEMENT
THIS BARGAIN SALE AGREEMENT ("Agreement") is made as of October , 2013,
by and between The Luther Company, LLLP (formerly The Luther Company Limited
Partnership), a Minnesota limited liability limited partnership ("Seller"), and the Brooklyn
Center Economic Development Authority Minnesota, a Minnesota body politic and corporate
("Purchaser").
RECITALS
A.Seller is the fee owner of the parcel of land located at 6107 Brooklyn Boulevard
Brooklyn Center, Minnesota that is described in Exhibit A attached hereto and incorporated
herein, together with the rights privileges, and easements appurtenant thereto and the
improvements located thereon (the "Real Property").
B.Seller desires to sell and make a partial gift of the Real Property to Purchaser and
Purchaser desires to purchase and accept a partial gift of the Real Property from Seller on the
terms and conditions herein set forth.
In consideration of the RECITALS and the mutual covenants and undertakings contained
herein the parties agree as follows:
1.Sale and Purchase of Property. Seller agrees to sell and make a partial gift of the
Real Property to Purchaser and Purchaser agrees to purchase and accept a partial gift of the Real
Property from Seller on the terms and conditions contained in this Agreement.
2.Purchase Price; Appraisal Process. Purchaser agrees to pay to Seller as the
purchase price (the "Purchase Price") for the Real Property One Hundred Fifty Thousand and no
Hundredths Dollars ($150,000.00). The Purchase Price shall be payable by wire transfer at
Closing of immediately available funds to a bank account designated by Seller.
3. Title. Purchaser may make such investigations of the title to the Real Property as
it desires and may make objections to title at any time prior to Closing, the objections to be made
in writing. Purchaser need not object to mortgages or other liens. If not sooner satisfied, Seller
shall satisfy any mortgages on other liens against the Real Property at the Closing. If any
objections are so made, Seller shall be allowed until the Closing Date to cure such objections and
make the title to the Real Property good and marketable of record in Seller. Seller will have no
obligation to cure any objections. If the title to the Real Property is not good and marketable of
record in Seller on the Closing Date, Purchaser, as its sole and exclusive remedy, may either:
a. Terminate this Agreement by giving written notice to Seller; or
b. Elect to accept the title in its unmarketable condition and without
reduction of the Purchase Price by giving written notice to Seller.
4.Survey. Purchaser, at its expense, may obtain an ALTA/ACSM land survey of
the Real Property ("New Survey"). The New Survey shall include such Table A items to the
2011 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys as
Purchaser may desire.
5.Documents to be Delivered by Seller. Within ten (10) business days after the date
hereof Seller shall deliver to Purchaser complete copies of Seller's most recent land survey of the
Real Property, and any soil reports, engineering reports, environmental audits and reports or
notices concerning the Real Property in Seller's possession (collectively, the "Property
Information"). The Property Information will be delivered to Purchaser for informational
purposes only, without any representation or warranty, including, without limitation, any
representation or warranty as to the accuracy or completeness thereof.
6.Inspection. Purchaser, its agents and designees, are hereby granted the right, at
times reasonably acceptable to Seller and Purchaser, to enter upon and survey, inspect, analyze,
and test the Real Property for all reasonable purposes, including, without limitation, the presence
of Hazardous Substances (as defined in Paragraph 27 hereof). Purchaser shall pay for the cost of
all surveys, investigations, analyses and tests which are ordered by Purchaser and shall be
responsible, at Purchaser's sole expense, to repair any damage resulting from Purchaser's
performance of such tests or inspections. Purchaser hereby agrees to indemnify, defend and hold
Seller harmless from any claims, damage, costs, and liability, including, without limitation,
reasonable attorney's fees, resulting from the entering upon the Real Property or the performing
of any of the analyses, tests or inspections referred to in this Paragraph; however, nothing
contained herein shall be deemed to require Purchaser to hold Seller harmless from any liability
for discovered conditions. Purchaser's indemnity obligations under this Paragraph shall survive
the closing or termination of this Agreement.
7.Representations and Wananties of Seller. Seller represents and warrants to
Purchaser as follows:
a.Seller is and on the Closing Date will be the owner of fee title to the Real
Property. Seller will cause the Real Property to be released from any mortgages or other
liens at or prior to closing.
b.At Closing, there will be no leases or other occupancy agreements in
effect with respect to the Real Property.
c.At Closing, no contracts or agreements will be in effect with respect to the
Real Property by which Purchaser shall be bound.
d.Except as may be disclosed by the Property Information, Seller has no
knowledge of any wells, either in use, not in use, or sealed, located on the Real Property.
e. Except as may be disclosed by the Property Information, to Seller's
knowledge, there are no underground tanks or septic systems located on the Real
Property
The term Seller's knowledge and similar terms means the actual knowledge of C. David Luther,
a general partner of Seller, and Linda McGinty, of Motors Management Corporation, who
generally supervises real estate matters on behalf of Seller, without having undertaken any
investigations or inquiries, other than investigations and inquiries made by Seller in connection
with Seller's acquisition of the Property in November, 2001. Such persons are named solely for
the purpose of defining Seller's knowledge and not for the purpose of imposing any liabilities on
or creating any duties running from such individuals to Purchaser, and in no event shall any such
person be personally liable for any representation, warranty or covenant made herein.
Seller will give Purchaser prompt written notice if it learns of anything which would
affect or change any of the foregoing representations and warranties or any other representations
or warranties of Seller in this Agreement. The notice will include a detailed explanation of the
nature of the matter, and the warranty or warranties affected and/or changed.
Seller will indemnify, defend and hold Purchaser harmless from any loss, cost, damage or
expense, including, without limitation, court costs, and reasonable attorneys fees, suffered or
incurred by Purchaser arising out of any material breach by Seller of any of its representations or
warranties contained in this Paragraph or elsewhere in this Agreement. However, if Seller
notifies Purchaser or Purchaser otherwise becomes aware that any of the representations or
warranties contained in this Paragraph or elsewhere in this Agreement is not materially true as of
the Closing Date, Purchaser, as its sole and exclusive remedy, may terminate this Agreement by
giving written notice to Seller. Notwithstanding anything herein to the contrary, Seller's
indemnification obligation shall cease and be of no further force or effect on the first (1st)
anniversary of the Closing Date, except with respect to any specific matter for which Purchaser,
prior to such date, has commenced an action based on a claim for which Seller has an obligation
to indemnify Purchaser.
8. Closing/Payment of Closing Costs. The closing hereunder ("Closing") shall take
place on December 6, 2013, or such earlier date on which Seller and Purchaser may agree. (Such
date or such other date as this transaction actually closes as determined in accordance with the
provisions of this Agreement is herein sometimes called the "Closing Date"). The Closing shall
take place at an office of the Title Company or such other place that is mutually acceptable to the
parties.
At the Closing, Seller shall execute, where appropriate, and deliver to Purchaser:
a. A limited warranty deed ("Deed") properly executed and acknowledged
on behalf of Seller in recordable form, conveying the Real Property to Purchaser. Unless
Seller provides a well disclosure certificate pursuant to applicable Minnesota law, the
Deed shall contain a certification by Seller that Seller does not know of any wells on the
Real Property.
b. Any certificates, instruments, and other documents necessary to permit the
recording of the Deed.
c.A Standard Seller's Affidavit with respect to judgments, bankruptcies, tax
liens, mechanics liens, parties in possession, unrecorded interests, encroachment or
boundary line questions, and related matters, properly executed on behalf of Seller.
d.An affidavit stating that neither Seller nor, if Seller is a disregarded entity
for federal income tax purposes, the owner(s) of Seller is a "foreign person" within the
meaning of Section 1445 of the Internal Revenue Code.
e.A certificate to the effect that the representations warranties of Seller
contained in this Agreement, as modified by any notices provided by Seller as provided
in Paragraph 7 hereof, are true, correct and complete in all material respects as of the
Closing Date.
f.Any well certificate required by applicable Minnesota law.
g.A closing statement.
h.Such other instruments and documents as are reasonably necessary to
complete the transaction contemplated by this Agreement.
Contemporaneously with the delivery of the foregoing items, Purchaser will deliver the Purchase
Price to Seller in accordance with Paragraph 2 hereof and a closing statement executed on behalf
of Purchaser. Purchaser shall also deliver to Seller such documents as are reasonably necessary
to complete the transaction contemplated by this Agreement.
Seller shall pay the Minnesota deed tax payable on the Deed. Seller and Purchaser will
each pay one-half of the fee charged by a title insurance company or other closing agent for
handling the Closing. Purchaser will pay the premium for any policy of title insurance it elects
to purchase. Except as provided in Paragraph 23 hereof, each party shall pay its own legal fees.
9.Real Estate Taxes and Special Assessments. Real estate taxes and installments of
special assessments, if any, due and payable in the year prior to the year of Closing and all prior
years, including any real estate taxes otherwise payable during any such year which may have
been deferred, shall be paid by Seller. Real estate taxes and installments of special assessments,
if any, due and payable in the year of Closing, including any real estate taxes and special
assessments otherwise payable during such year which may have been deferred, shall be prorated
as of the Closing Date based upon the parties' respective period of ownership of the Real
Property in the calendar year of Closing. If the real estate taxes due and special assessments
payable in the year of Closing are unavailable on the Closing Date, the proration will be based on
those due and payable in the immediately prior year and such proration will be final.
10.Possession; Utilities. Seller shall deliver possession of the Real Property to
Purchaser on the Closing Date in "broom clean" condition. Any utilities and other expenses
shall be prorated and adjusted as of the Closing Date, with Purchaser responsible for the
expenses beginning with the Closing Date. To the extent practical, Seller shall pay prior to the
Closing Date any utility bills that pertain to the period before the Closing Date and deliver
appropriate receipts evidencing such payment at Closing.
--4
11.Risk of Loss; Pending Condemnation. Risk of loss to the Real Property prior to
Closing shall remain in Seller.
If, prior to Closing, proceedings for the condemnation of the Real Property, or any
interest therein, or any portion thereof, are commenced, Purchaser may, at its option, terminate
this Agreement by written notice to Seller given within fifteen (15) days after Seller advises
Purchaser in writing of the occurrence of such an event. If Purchaser terminates this Agreement,
neither party shall have any further rights, obligations or liability under this Agreement except
Purchaser's indemnity obligations under Paragraph 6 hereof. If the Closing is otherwise
scheduled to occur prior to expiration of the fifteen (15) day period, it shall be extended, at
Purchaser's option, to the first business day following expiration of the fifteen (15) day period.
In the event of any such condemnation, Seller agrees to fully inform Purchaser regarding the
probable amount of any condemnation award recoverable on account thereof. If this Agreement
is not terminated on account thereof, Seller shall assign to Purchaser at Closing its rights to any
such condemnation award that have not been paid to Seller, and Purchaser shall receive a credit
against the Purchase Price for any condemnation award paid to Seller that have not been
expended in repair and restoration of the Real Property.
12.Notices. All notices to be given in connection with this Agreement shall be in
writing and delivered personally, sent by a facsimile, by a nationally recognized overnight
courier service or by registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:
If to Purchaser:
If to Seller:
The Brooklyn Center Economic Development Authority
6301 Shingle Creek Parkway
Brooklyn Center, MN, 55430
Attn: City Manager
Facsimile . 763-569-3494
The Luther Company, LLLP
3701 Alabama Avenue South
St. Louis Park, Minnesota 55416
Facsimile: 952-258-8914
Attention: C. David Luther and Linda McGinty
With a copy to: Gray, Plant, Mooty, Mooty & Bennett, P. A.
500 IDS Center
80 South Eighth Street
Minneapolis, Minnesota 55402
Facsimile: 612-632-4074
Attention: John D. Giudicessi
Notices sent by facsimile shall be deemed to have been given on the date transmitted. Notices
sent by courier shall be deemed to have been given to or served upon the party to whom it is
addressed on the date it is deposited with the courier service for next business day delivery.
Notices sent by mail shall be deemed to have been given to or served upon the party to whom it
is addressed on the date it is deposited in the United States registered or certified mail, return
receipt requested, postage prepaid, properly addressed in the manner above provided. Either
party hereto may change such party's address for the service of notice hereunder by written
notice of said change to the other party hereto, in the manner above specified ten (10) days prior
to the effective date of said change.
13.Default. If Seller defaults in the performance of its obligations hereunder or
breaches any representation or warranty contained herein, and such default shall not be cured
within five (5) days after notice from Purchaser, Purchaser, as its sole and exclusive remedies,
may either terminate this Agreement or bring an action for specific performance Any action for
specific performance shall be commenced not later than six (6) months following the date of the
alleged breach or default.
If Purchaser defaults in its obligations under this Agreement, except those contained in
Paragraph 6, Seller, as its sole and exclusive remedy, shall be entitled to terminate this
Agreement in accordance with Minn. Stat. Section 559.21. If Purchaser defaults in the
performance of its obligations under Paragraph 6 hereof, and such default shall not be cured
within five (5) days after notice from Seller, Seller shall have and may pursue all rights and
remedies available to it hereunder, at law or in equity, or otherwise, including, but not limited to,
an action for damages or specific performance. Any action for specific performance shall be
commenced not later than six (6) months following the date of the alleged breach or default.
Purchaser's indemnity obligations under Paragraph 6 shall survive any termination of this
Agreement.
14.Complete Agreement. This is a final Agreement between the parties and contains
their entire agreement and supersedes all previous understandings and agreements, oral or
written, relative to the subject matter of this Agreement. This Agreement may be amended only
in a writing dated subsequent to the date of this Agreement and duly executed by all parties.
15.Time of the Essence. Time is of the essence in the perfoiniance of this
Agreement.
16.Controlling Law. This Agreement has been made and entered into under the laws
of the State of Minnesota, and said laws shall control the interpretation hereof.
17.Successors and Assigns. Purchaser may not assign this Agreement without
Seller's prior written consent and any purported assignment with Seller's prior written consent
will be void. Subject to the immediately preceding sentence, this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
18.Incorporation of Recitals; Survive Closing. The Recitals are incorporated into
and made a part of this Agreement. All of the covenants, warranties and provisions contained in
this Agreement shall survive and be enforceable after Closing of the transaction contemplated by
this Agreement.
--6
19.Captions. The paragraph headings or captions appearing in this Agreement are
for convenience only, are not a part of this Agreement, and are not to be considered in
interpreting this Agreement.
20.Brokerage Commission. Seller and Purchaser each warrants to the other that, in
connection with this Agreement, they have dealt with no broker, finder, or similar person. Seller
will indemnify, defend and hold harmless Purchaser against any claim made by any agent or
broker for a commission or fee based on acts or agreements of Seller. Purchaser will indemnify,
defend and hold harmless Seller against any claim made by any agent or broker for a commission
or fee based on acts or agreements of Purchaser.
21.Counterparts; Delivery by Email or Facsimile This Agreement may be executed
in two or more counterparts, each of which shall be an original and all of which shall constitute
one Agreement. Delivery of an executed copy of this Agreement by email or facsimile shall be
deemed delivery of the executed original.
22.Severability of Provisions. If any term or provision of this Agreement is illegal or
invalid for any reason, such illegality or invalidity shall not affect the validity or enforceability of
the remainder of this Agreement.
23.Attorneys' Fees. If any action at law or in equity, including an action for
declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the
prevailing party shall be entitled to recover reasonable attorneys' fees and all other costs and
expenses of litigation from the other party, which amounts may be set by the court in the trial of
such action or may be enforced in a separate action brought for that purpose, and which amounts
shall be in addition to any other relief which may be awarded.
24.Purchaser's Contingencies. Purchaser's obligation to close under this Agreement
is expressly conditioned upon the following contingency being satisfied or waived or before the
November 29, 2013 ("Contingency Date"):
Purchaser having determined that the Property Information and the condition of
the Real Property, including, without limitation, its environmental condition, are
acceptable to Purchaser.
The foregoing contingency is for Purchaser's sole benefit. Whether or not it has been
satisfied shall be determined by Purchaser in the exercise of its sole and absolute discretion. If
the contingency is not satisfied, or satisfaction thereof is not waived by Purchaser giving written
notice to Seller of said waiver on or before the Contingency Date, Purchaser, at its option, may
terminate this Agreement by giving written notice to Seller on or before the Contingency Date.
If Purchaser so terminates this Agreement, neither party shall have any further rights, obligations
or liability hereunder, except that Purchaser's indemnity obligations under Paragraph 6 hereof
shall survive any such termination.
25.No Strict Construction. The parties and their respective counsel have participated
jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the
parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provision of this Agreement.
26.As is Purchase; Waiver and Release. Purchaser acknowledges that neither Seller
nor any entity related to Seller has occupied or used the Real Property for many years. Purchaser
further acknowledges that prior to Closing it will have the opportunity to perform all tests,
investigations and analyses concerning the Real Property as it deems necessary or desirable.
Buyer agrees that except for the representations and warranties expressly contained in Paragraph
7 and the warranties contained in the Deed (i) in purchasing the Real Property, Buyer is not
relying on any representation, warranty or promise by or on behalf of Seller concerning the Real
Property or any aspect thereof, including, without limitation, any representation, warranty or
promise concerning the quality, value, compliance with laws, physical aspects or condition of the
Property, environmental or otherwise, or its fitness or suitability for any particular use, and (ii)
Buyer is purchasing the Real Property based upon Buyer's own inspections and investigations
thereof in its "As Is" and "Where Is" condition, and "With All Faults."
27.Release and Waiver of Claims. Without in any way limiting the provisions of
Paragraph 26 above, and except for claims based on a breach of Seller's representations and
warranties contained in Paragraph 7 which are commenced within twelve (12) months after the
actual Closing, Purchaser, for itself, its successors and assigns, hereby releases Seller from any
and all responsibility, liability and claims for or arising out of the presence on or about the Real
Property (including in the soil, air, structures and surface and subsurface water) of Hazardous
Substances. The term "Hazardous Substances" includes any toxic or hazardous substances,
vapors, hazardous wastes, pollutants, irritants or contaminants, including, without limitation,
asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated
biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of
such products, mold, radioactive materials and any hazardous substances or wastes, pollutants or
contaminants as defined in or regulated pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. § 9601-9657, as amended,
Minnesota Statutes Chapter 115B or any other federal, state or local laws relating to public or
worker safety, or protection of natural resources, human health or the environment.
28.Acknowledgment of Gift. Purchaser acknowledges that the Purchase Price is
significantly less than the market value of the Real Property and the difference in value between
the Purchase Price and the market value of the Real Property is a charitable gift from Seller to
Purchaser.
[Signature Page follows]
[Remainder of Page intentionally left blank]
Signature Page to Bargain Sale Agreement
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.
Brooklyn Center Economic Development Authority
By:
Its President
By:
Its Executive Director
The Luther Company, LLLP
By:
C. David Luther
A general partner
EXHIBIT A
DESCRIPTION OF LAND
Land situated in Hennepin County, Minnesota, described as follows:
Lot 1, 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 and 52.3 seconds with said North Section line of 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 curve (delta angle 17 degrees 20 minutes 35.2 seconds)
for 867.16 feet and there terminating,
Block 6, Wangstad's Brooklyn Terrace, Hennepin County, Minnesota.
Certificate of Title Number 1073967
Hennepin County Property Tax Parcel No. 34-119-21-43-0049
GP:3516437 v2
EDA Agenda Item No. 4c
EDA ITEM MEMORANDUM
DATE: October 28, 2013
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Business and Development Director
Tim Benetti, Planning and Zoning Specialist
SUBJECT: Resolution Authorizing the City of Brooklyn Center to Apply for a Business and
Community Development Application (Minnesota Investment Fund) to the
Minnesota Department of Employment and Economic Development for the
Benefit of Sign-Zone, Inc. (Palmer Lake BC, LLC)
Recommendation:
It is recommended that the Economic Development Authority of Brooklyn Center, Minnesota
(EDA) approve and adopt the resolution authorizing the City of Brooklyn Center to apply for a
Business and Community Development Application (Minnesota Investment Fund) to the
Minnesota Department of Employment and Economic Development for the benefit of Sign-
Zone, Inc. (Palmer Lake BC, LLC).
Background:
On October 3, 2013, planning staff met with Ed Flaherty and George Frost, the President and
Vice Pres./CFO respectively, of Lariat Companies and owners of Sign-Zone Inc. At that time,
Lariat Companies was in the process of securing ownership (through bankruptcy proceedings) of
the Palmer Lake Plaza facility, located at 6850 Shingle Creek Parkway. This property was
formerly owned by Jeffrey Wirth of Palmer. Lake Properties, LLC. It is our understanding that
Mr. Flaherty and his group are now in possession of said property.
Mr. Flaherty is seeking to relocate his Sign-Zone, Inc. corporate headquarters from Ramsey, MN
and the manufacturing/distribution facilities in New Hope, MN to Brooklyn Center and the
Palmer Lake Plaza properties. Sign-Zone is a manufacturer and reseller of visual communication
and display products, such as signs, banners, colorful graphic displays, booths and furniture,
which are used in the trade shows, conventions and seminar industries, and other miscellaneous
business needs. Mr. Flaherty indicated that up to 250+ employees or jobs will be relocated to the
city, with a potential of adding up to 25 or more once they complete the relocation and
remodeling of the Palmer Lake building.
This Department of Employment and Economic Development (DEED) - Minnesota Investment
Fund application indicates a request for funding up to $125,00.00, to be used for various site
improvements. As part of DEED' s review process, the City of Brooklyn Center acts as the
"applicant" and on behalf of the benefitting business, Sign-Zone, Inc.
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
Budget Issues:
There are no budget issues to consider, since the funds will be provided directly from DEED to
the City, which are then allocated or distributed directly to Sign-Zone, Inc., provided they meet
the requirements and terms of the application and DEED agreement. The primary budget impact
will be staff time necessary to monitor the funds and process future payment requests.
Strategic Priorities:
0 Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for people and preserves the public trust
Commissioner introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER'S
ECONOMIC DEVELOPMENT AUTHORITY TO SUPPORT, APPLY FOR
AND ENTER INTO A MINNESOTA DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT'S MINNESOTA INVESTMENT FUND
APPLICATION ON BEHALF OF SIGN ZONE INC./PALMER LAKE BC, LLC
FOR THE BENEFIT OF THE PALMER LAKE PLAZA FACILITIES AND
PROPERTY, LOCATED AT 6850 SHINGLE CREEK PARKWAY,
BROOKLYN CENTER, MINNESOTA, 55430
BE IT RESOLVED that the Economic. Development Authority in and for the City
of Brooklyn Center, Minnesota, a body politic and corporate under the laws of the State of
Minnesota ("EDA of Brooklyn Center") act as the legal sponsor for the project contained in the
Business and Community Development Application to be submitted on the State of Minnesota
Department of Employment and Economic Development's "Minnesota Investment Fund"
application for the Palmer Lake Plaza facilities and property, located at 6850 Shingle Creek
Parkway, Brooklyn Center, MN 55430, and that Tim Willson, President and Cornelius L.
Boganey, the Executive Director of the EDA, are hereby authorized to apply to the Department
of Employment and Economic Development for funding of this project on behalf of the EDA of
Brooklyn Center.
BE IT FURTHER RESOLVED that the EDA of Brooklyn Center has the legal
authority to apply for financial assistance, and the institutional, managerial, and financial
capability to ensure adequate construction, operation, maintenance and replacement of the
proposed project for its design life.
BE IT FURTHER RESOLVED that the EDA of Brooklyn Center has not incurred
any costs and has not entered into any written agreements to purchase property.
BE IT FURTHER RESOLVED that the EDA of Brooklyn Center has not violated
any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of
interest or other unlawful or corrupt practice.
BE IT FURTHER RESOLVED that upon approval of its application by the state,
the EDA of Brooklyn Center, may enter into an agreement with the State of Minnesota for the
above-referenced project, and that the EDA of Brooklyn Center certifies that it will comply with
all applicable laws and regulations as stated in all contract agreements and described on the
Compliance Section (S-7) of the Business and Community Development Application.
AS APPLICABLE, BE IT FURTHER RESOLVED that the EDA of Brooklyn
Center has obtained credit reports and credit information from Sign Zone, Inc. and Ed Flaherty,
President of Sign Zone, Inc. Upon review by the EDA of Brooklyn Center and city attorneys
EDA RESOLUTION NO.
with Kennedy and Graven, Chartered, no adverse findings or concerns regarding, but not limited
to, tax liens, judgments, court actions, and filings with state, federal and other regulatory
agencies were identified. Failure to disclose any such adverse information could result in
revocation or other legal action.
NOW, THEREFORE BE IT RESOLVED that Tim Willson, President of the
EDA and Cornelius L. Boganey, the Executive Director of the EDA, or their successors in office,
are hereby authorized to execute such agreements, and amendments thereto, as are necessary to
implement the project(s) on behalf of the applicant.
October 28, 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
• POSITIVELYal,te5&Initial Application
Minnesota Investment Fund
Department of Employment and Economic Development
Application should not be submitted without consulting with DEED Loan Officer to discuss project eligibility.
DEED will use the information below to better understand the project scope and to determine if the local government,
business and project are eligible for Minnesota Investment Fund (MIF) program funds. DEED will make a project
eligibility determination within 30 days of receiving a complete application. Supplemental project documents will be
required following application approval.
LOCAL UNIT OF GOVERNMENT INFORMATION
Applicant Name: City of Brooklyn Center, MN Contact Name/Title: Curt Boganey, City Manager
6301 Shingle Creek Parkway City Brooklyn Center 55430Address: State: MN Zip:
Telephone: (763) 569-3350 Email:
Does the local government have an EDA? Yes
1) Does applicant have a Revolving Loan Fund?
cboganey@ci.brooklyn-center.mn.us
No
Yes ill No
If yes: What is the balance of the DEED revolving loan funds?
What is the balance of all other revolving loan funds?
What is the amount the local government is committing to this project?
2)Is the applicant up to date with the filing of Minnesota Business Assistance Forms? El Yes riNo
3)Does the community have any outstanding TIF issues associated with the property? I I Yes • No
BUSINESS/PROJECT BACKGROUND INFORMATION
Sign-Zone, Inc./Palmer Lake BC, LLC George Frost, Vice Pres./CFOBusiness Name: Contact Name/Title:
Address: 8345 Crystal View Road, #200 City Eden Prairie State: MN Zip: 55340
Email: Telephone: (952) 239-2952 george.frost@lariatcompanies, com
4)Business Type: Startup El Expansion
5)Will any jobs be relocated from another Minnesota site or from outside of Minnesota? El Yes I No
If yes, which location(s) will the employees be relocated from? Ramsey; New Hope
6)Current Number of Full Time Equivalent (FTE) Employees in Minnesota: 250
*Full Time Equivalent (FTE) is based on a total annual hours of 2080.
7)Number of new FTE jobs to be created within 2 years in Minnesota: 25
*Job number will be used to determine eligibility, for scoring and for job creation commitments.
8) What is the hourly base wage of the lowest paid job that will be created? $ 13.50
12/4/2012 Page 1
POSITIVELY~50 llylliijal Applicailon
bViiinnesota Investment Fund
Department of Employment and Economic Development
9)Will benefits be provided? M Yes ENo
If yes: What is the hourly value of the benefits? $ 3
'
25
Which benefits will be provided?
Health a Dental Retirement Li Life n Profit Sharing/Bonuses
10)Does the property or the business have any outstanding local, state or federal tax liabilities? lu Yes No
Arrears Property Taxes to be paid up at closingIf so, please detail tax and liability:
ESTIMATED PROJECT TIMETABLE
Task:Estimated Completion Date:
Commitment of all funds 10/1/14
Start of construction 2/1/14
Purchase equipment 7/1/14
Complete construction 3/1/15
Begin operations 8/1/14
ESTIMATED SOURCES AND USES OF FUNDS
MIF Bank Equity
Local
Government Other Total
Property Acquisition $ 435,000.00 $ 900,000.00 $ 1,335,000.00
Site Improvement $ 125,000.00$ 345,000.00 $ 470,000.00
New Construction $ 425,000.00 $ 425,000.00
Renovation of an
Existing Building $ 900,000.00 $ 900,000.00
Purchase of Machinery
& Equipment $ 500,000.00 $ 500,000.00
Public Infrastructure $ 0.00
Other $ 587,000.00 $ 587,000.00
Total Project Costs $ 125,000.00 $ 3,192,000.00 $ 900,000.00 $ 4,217,000.00
Page 212/4/2012
llfriik]IJpp!kfJJtion
Minnesota Investment Fund
,POSITIVELY
Department of Employmont and Economic Development
ATTACHMENTS
Attach the following information with the application. Application is not considered complete until all
documents have been received.
10) Include a project narrative which answers the following questions:
A)Briefly describe the past and present operations of the business and/or events leading up to its creation.
Include when business was established and any change in controlling ownership within the last five years. Does
the marketing strategy support the planned expansion or start-up? What is the business' competitive position in
the marketplace?
B)Describe the proposed project for which financing is being requested. Discuss such topics as square footage
of the new building, lease or ownership, etc.
C)Provide local governments' summary of the projects financial feasibility. For example, summarize other
funding sources, the debt/equity ratio and the retained earnings levels.
D)Describe the local governments' ability to manage the grant, revolving loan fund, state and local compliance
requirements, and the implementation of the project:
E) Explain why MIF financing is necessary for this project?
11) Three years historical financial information: Balance sheets, Profit and loss statements and Cash flow statements
12)Business Plan: Company History, Market Opportunity and Competitive Advantage
ENVIRONMENTAL
13)Are there any environmental risks associated with the site, building, or the business itself? I I Yes DI No
14)Will the project result in the loss or diminution of wetlands? Ei Yes I No
*If yes, attach a narrative that describes the measures which will be taken to mitigate all functional values of
the wetlands that will be lost or diminished.
15)Will the proposed project be located in a flood plain? 0 Yes DI No
If yes, is flood insurance required? I I Yes 0 No
16)Have state environmental review requirements been met, if applicable? PI Yes n No
17)Does the project involve a historical property? n Yes LI No
18)Does the project include the expansion of the building footprint by 20% or more? n Yes E No
19)Does the project include the installation of a new sewer and/or water system? 0 Yes •
12/4/2012 Page 3
POSITIVELYaraf,e50 -
Brilitiol Application
Minnesota Investment Fund
Dopartmont of Employmont and Economic Dovolopmont
BUSINESS OFFICIAL MUST READ AND SIGN THE FOLLOWING INFORMATION
DATA PRIVACY ACKNOWLEDGEMENT:
Termessen Warning Notice: per MN Statutes 13.04, Subd.2, this data is being requested from you to determine if you
are eligible for a loan under the Minnesota Investment Fund program. You are not required to provide the requested
information, but failure to do so may result in the department's inability to determine your eligibility for a loan pursuant
to the criteria developed under the program's enabling legislation. The data you provide is classified as private or non-
public and cannot be shared without your permission except as specified in statute.
Data Privacy Notice: per MN Statutes 13.591, Subdivision 1, certain data provided in this application is private or non-
public data; this includes financial information about the business, including credit reports, financial statements, net
worth calculations, business plans; income and expense projections; balance sheets; customer lists; income tax returns;
and design, market, and feasibility studies not paid for with public funds. Per MN Statutes 1161401, Subd. 3., certain
data provided in this application is private data; this includes data collected on individuals pursuant to the operation of
the Minnesota Investment Fund program.
I have read the above statements and I agree to supply the information requested to the MN Department of
Employment and Economic Development, Office ofJOBZ and Business Finance with full knowledge of the information
provided herein, I certify that all information provided herein is true and accurate and that the official signing this form
has authorization to do so.
Name/Title of Business Official: George R. Frost, Treasurer, Sign-Zone, Inc.
Signature of Business Official: /- Date:
12/4/2012 Page 4
Description of Company Version 4, October 22, 2013
BACKGROUND
Sign-Zone, Inc. ("Sign Zone") is a Ramsey, MN headquartered, Minnesota S-Corporation which has
evolved from a predecessor company which was incorporated in 1989. Sign Zone has 4 DBA's, the
largest of which are Showdown Displays and Creative Banner Assemblies. In 2012, it merged with
another similar-sized Minnesota corporation, New-Hope based Chromatic Concepts, Company, with
Sign-Zone, Inc. being the surviving entity. The merger was friendly, as the two companies had
overlapping ownership and many similar product offerings which were at the time of merger, and are
still, being sold into different distribution channels, meaning, the two companies didn't compete with
each other at the time of their merger. The controlling shareholders of Sign Zone (brothers Ed Flaherty
and Dennis Flaherty) were the 100%-owners of Chromatic Concepts. There are two other owners of
Sign Zone who together own 16% of the company.
Sign Zone is a manufacturer and reseller of visual communications and display products for its primarily
distributor-customers in the displays and signs/signage industries; it has no retail customers, for all
intents and purposes. The value-added aspects of its business are usually unique products and/or large-
format digital graphics for inclusion in products and displays of various shapes and sizes which it sells:
trade show booths and table-top displays, point of sale graphics, event tents, retractors, banners, table
throws, and so forth. In, September, 2013, Sign Zone was recognized as Minnesota's top mid-size
manufacturer by Minnesota Business magazine, and it possesses the coveted top supplier rating ("5")
from ASI, which is far and away the largest association of Advertising Specialties distributors in the US. It
employs some 30 graphic artists who work with customers to create or refine graphic designs and/or
convert customer designs into images ready for imprinting on a variety of materials and substrates.
In Minnesota, Sign Zone currently employs a total of 264 employees at its New Hope (manufacturing
and distribution) and Ramsey (headquarters-manufacturing-distribution) locations, with another 4
outside sales employees stationed in other states. Sign Zone's sales volume has quadrupled since 2009
(2013 will close over $50 million) and its employment has more than doubled in this same period (both
figures partially reflect the Chromatic Concepts merger discussed above). As a result of this growth, its 2
locations are operating at maximum capacity, and expectations of continued rapid growth (15+% per
year) led to the commencement of a facility search in early 2013. This search identified the opportunity
to rent additional New Hope warehouse space on a month to month basis, which has provided a
capacity safety valve for 2013 and into 2014, and, ultimately, the opportunity to acquire the existing
Palmer Lake Plaza complex at 6850-6870 Shingle Creek Parkway in Brooklyn Center, for conversion to
another manufacturing facility and a new headquarters location. The closer-in Brooklyn Center location
(as compared to Ramsey) and the mass transit opportunities associated with this location, will enable
Sign Zone to tap into sources of new employees that are not available in Ramsey, while also providing
the space and capacity to service the continuing expected double digit percentage growth over the next
several years which came out of the company's strategic planning activities.
PROJECT
The leases for all but one of the 8 tenants of the 54%-vacant, 160,000 sf Palmer Lake Plaza complex,
have terms that expire between now and July, 2015. (Brooklyn Center Learning Center's lease term
extends to July, 2018.) The plan is to encourage all tenants to identify and capitalize on re-location
opportunities as their lease terms wind down, while at the same time, Sign Zone will begin to demolish
interior areas of the complex which will be required for manufacturing and assembly. Sign Zone will
relocate its corporate headquarters staff (CEO/Administration, Finance-Accounting, and Human
Resources) from Ramsey into existing office space at Palmer Lake Plaza early in the second quarter of
2014, and will add manufacturing and distribution personnel thereafter. Based on present employment
levels at our current, smaller-but-completely-occupied locations in Ramsey and New Hope, it's likely
that a high percentage of next 100+ employee additions to the company's employment rolls over
perhaps the next decade, will work at this new Brooklyn Center complex.
MINESOTA INVESTMENT FUND (MIF) FINANCING
This new Brooklyn Center location is the largest undertaking in Sign Zone's history. It will rely on third
party financing (bank, or bank-guaranteed in the case of an Industrial Revenue Bond) for the bulk of the
expected $4.5 million project but is prepared to provide equity as required. The company presently has
significant term debt, including a mortgage on its New Hope facility, and notes on equipment which has
accompanied the growth of sales and employment over the recent past, and arising out of the 2012
merger. Financing from MIF will make this expanded debt burden bearable particularly in the initial
years (2014-2016), while the business begins to create jobs at the initially-underutilized Parker Lake
Plaza facility, until increasing sales volume helps to fill the facility with needed workers and production
capacity.
Sign-Zone, Inc. 2013 Strategic Planning Summary
5 year Goal: Increase annual sales a compounded 15% to $100 Million while
producing an acceptable Return on Risk Capital of 12%
Market Opportunities:
1.Continue to develop relationships and sales with all of the 40 largest ASI
distributors in our category (up from current 30)
2.Increase our category penetration in each of the 48 contiguous states to an
overall average of 2% (up from current < 1%)
3. Effectively participate in overall category growth projected to average 6-8%
in the years 2014-2016.
Strategies
1.Develop and introduce innovative new products representing $15 million of
sales in 2018 which contribute to category and company growth and
maintain our position as the leading innovator in the displays and trade
show industries.
2.Optimize our sales effectiveness through increasing use of factory reps in
multiline broker territories where there are opportunities to improve
current sales coverage.
3.Evaluate opportunities to acquire manufacturers with innovative and/or
competitive products which can contribute to overall profitable sales
growth.
4.Refine our purchasing activities to assure we are optimizing the cost of our
materials on the most advantageous terms we can secure.
5.Continue to improve our Best Place to Work rating as confirmed by annual
employee surveys and recognition by ASI as a Best Place to Work in our
category.
6.Expedite our facilities evaluation to assure we have adequate, appropriate
office/production/distribution facilities locations to support anticipated
sales volume and employee population growth throughout the period. To
include consideration of adding coastal distribution locations to better
service remote markets (East and West coast)
7. Utilize annual wage and benefit surveys in our employment market(s) to
assure the competitiveness of our offerings to our associates.
COMPANY HISTORY
1.Incorporated in 1989 as de'SIGN'er, Inc.
2.Merged with affiliated companies, American Laminating, Inc. and
Continental Sign and Advertising, Inc. in 1998.
3.Moved to first corporate headquarters, New Brighton, in 1999.
4.Merged with Great Signs Inc. in 2000.
5.Moved to new headquarters in Ramsey, 2005.
6.Sold Continental Signs division, 2008.
7.Sold American Laminating division, 2009.
8.Sold Continental Post division, in 2010.
9. Merged with Chromatic Concepts, Company, in 2012.
.12
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EDA Agenda Item No. 4d
EDA ITEM MEMORANDUM
DATE: October 28, 2013
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business & Development
SUBJECT: Resolution Authorizing the Use of Tax Increment District 3 Housing Funds for
Site Improvements Relating to the Lake Pointe Parking Lot Improvements
Recommendation:
It is recommended that the Economic Development Authority consider approval/adoption of a
Resolution Authoring the Use of Tax Increment District 3 Funds for Site Improvements Relating
to the Lake Pointe Apartments Parking Lot Improvements.
Background:
The Lake Pointe Apartments, formerly known as the Twin Lakes Apartments, is a 311 unit
apartment complex comprised of 13 buildings on approximately 19 acres located south of 53 rd
Avenue North and east of Drew Avenue N, (3413 53 rd Ave. and 3305 53 rd Ave.)
The property was acquired by Soderberg Apartment Specialists in 2013 and is now in the final
stages of a major renovation of all of the units and significant improvements to the common
spaces and parking lots within the complex.
Working with the Soderberg Development Team we began to explore options and opportunities
associated with the existing parking lot, dual access lanes, and green space along the eastern
property line which is approximately 2100 feet in length and runs from 50 th Ave. to 53 rd Ave.
The majority of this distance is adjacent to the Highway 100 noise abatement wall and within an
easement for an existing Excel Energy Transmission line.
The option of including this area as a potential alternate alignment to the Twin Lakes Regional
Trail was embraced by both the Soderberg Development Team and staff from the Three River
Park District.
This option resulted in a preliminary design which identified a potential trail alignment and a
some challenges at the driveway entrance onto 53 rd Ave. and a few points adjacent to the
transmission towers and the northern portion of MnDOT's chain link fence. These challenges
were addressed by the Soderberg Development Team by reconsidering the parking lot layout and
location of the entrance driveway on 53 rd Ave.
Attached is a copy of the plan prepared by the Soderberg Development Team that provides for
the following corrective actions:
- The removal of approximately 25% of the bituminous surfacing within the parking lot
could be accomplished without affecting the total parking stalls.
—
Mission: Ensuring an attractive, clean, safe, inchtsive community that enhances the quality of life
for people and preserves the public trust
EDA ITEM MEMO NDUM
An alternate location to the driveway entrance, approximately 700 feet west of the current
location is preferred location from the position of internal security and safety for both the
vehicular traffic and pedestrian movement.
As part of the preliminary planning, City Staff has recommended that consideration be
given to using a concrete curb along the eastern edge of the parking lot, adjacent to the
green space. We used the City's street improvement projects as an example on how the
use of curbing enhances the overall appearance and maintains the investment in both the
bituminous surface and boulevard areas. While there was consensus amongst the Team
Members that curbing would be an enhancement to the project, they were already over
budget.
This plan is currently being developed with the contractors cutting and removing the portions of
the parking lot; however, the option of adding approximately 2100 feet of curbing along the
eastern edge of the parking lot is an option, should the EDA wish to cover the alternative bid
amount of $34,000.
Tax Increment District 3 Housing Fund:
The EDA does have the option of investing Tax Increment 3 Housing Funds into site
improvements and enhancement for eligible housing projects which meet the following
affordability requirements:
20% of the rental units (62 units) are rented to individuals that earn less than 50% of the
area median income of $83,900 ( annual wages of $41,950), or
40% of the rental units (124 units) are rented to individuals that earn less than 60% of the
area median income of $83,900 (annual wages of $53,340).
The Soderberg Management believes that it meets this ratio and income requirement and is in the
process of assembling the necessary documentation.
Budget Issues:
There is sufficient budget authority and funds available within the TIF 3 Housing Fund to pay for
the curbing improvements, should the EDA decide to approve the eligible use of these funds for
the Lake Pointe Site Improvements.
Strategic Priorities:
0 Community Image
. .
Mission: Ensuring an attractive, clean, sale, inclusive community 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 AUTHORIZING THE USE OF TAX INCREMENT DISTRICT 3
HOUSING FUNDS FOR SITE IMPROVEMENTS RELATING TO THE LAKE
POINTE PARKING LOT IMPROVEMENTS
WHEREAS, the Lake Pointe Apartments, formerly known as the Twin Lakes
Apartments, is a 311 unit apartment complex comprised of 13 buildings on approximately 19 acres
located south of 53 rd Avenue North and east of Drew Avenue N, (3413 53 rd Avenue and 3305 53'1
Avenue); and
WHEREAS, the property was acquired by Soderberg Apartment Specialists in 2013
and is now in the final stages of a major renovation of all of the units and significant improvements
to the common- spaces and parking lots within the complex; and
WHEREAS, the development plans include an option for the installation of a
concrete curb at a cost of $34,000 along the eastern edge of the parking lot which is considered by
the EDA as a beneficial improvement to this project and future community planning relating to the
realignment of a Regional Bike Trail; and
WHEREAS, the EDA does have the option of investing Tax Increment 3 Housing
Funds into site improvements and enhancement for eligible housing projects which meet the
following affordability requirements:
20% of the rental units (62 units) are rented to individuals that earn less than 50% of the area
median income of $83,900 ( annual wages of $41,950), or
40% of the rental units (124 units) are rented to individuals that earn less than 60% of the
area median income of $83,900 (annual wages of $53,340).
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center that the City Manager is hereby authorized to enter into an
agreement with Soderberg Apartment Specialists for the reimbursement of project cost in the amount
of $34,000, the costs associated with the ACS Asphalt Concrete Solutions proposal for the
installation of 2,217 linear feet of B-612 concrete curb, subject to the following condition:
1. That Soderberg Apartment Specialists provide the EDA with the necessary
documentation that the project meets the affordable housing criteria required
for a Tax Increment Housing Fund expenditure.
October 28, 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.
SODERBERG APARTMENT SPECIALISTS
_A DD )I\1
/-7
/
1
GRO.,77 LAKE POINTE APARTMENTS
1305,113 5.0 P. II • .00.11 C Ern. ER, N,
Phone: 763-432-0978Fax:
Qty Item
Excavation
Concrete Curbs
Total : Cost
Note Lake Pointe Apartments to offset the cost from original projeut cost
of $:43,000.00:
Install Approx. 2,217 L.F. B-612 Concrete Curb.
Asphalt patch inside of curb prior to overlay.
Total Cost 34,000.00
Description Total
1.Excavate Asphalt, Curb, Landscape rock and grass area
2.Use existing CL-5 Material on site for under the curb if needed..
10/15/2013 4074
Terms 30% Down, Balance net 10 days.Total $34,000.00
This Proposal may be
withdrawn if not accepted
within 30 days
Respectfully submitted
Acceptance of Proposal
Title
Craig A. Granroth
ACS
Topsite Management
Rolf Ulvin
ASPHALT CONCRETE SOLUTIONS
Site
Lake Pointe Apartments
3311 53rd Ave. N
Brooklyn Center, MN
Proposal
Date Job #
LOGISMap Output Page Page 1 of 1
http://gis.logis.org/LOGIS_ArcIMS/ims?ServiceName=bc Jogismap_ovsde&ClientVersion... 3/1/2013
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