HomeMy WebLinkAbout2014 01-13 EDAPEDA MEETING
City of Brooklyn Center
January 13, 2014
AGENDA
1.Call to Order
—The EDA requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full City Council packet, including EDA (Economic Development Authority),
is available to the public. The packet ring binder is located at the front of the Council
Chambers by the Secretary.
2.Roll Call
3.Approval of Agenda and Consent Agenda
—The following items are considered to be routine by the Economic Development
Authority (EDA) and will be enacted by one motion. There will be no separate
discussion of these items unless a Commissioner so requests, in which event the item will
be removed from the consent agenda and considered at the end of Commission
Consideration Items.
a. Approval of Minutes
1. December 9, 2013 — Regular Session
4.Commission Consideration Items
a. Resolution Electing Officers for the Economic Development Authority in and for
the City of Brooklyn Center
Requested Commission Action:
—Motion to adopt resolution.
Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities Within the Brooklyn Boulevard
Corridor (6031 Brooklyn Boulevard)
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
DECEMBER 9, 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 7:05 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, Finance
Director Nate Reinhardt, Public Works Director/City Engineer Steve Lillehaug, Business and
Development Director Gary Eitel, Director of Community Activities, Recreation and Services
Jim Glasoe, Assistant City Manager/Director of Building and Community Standards Vickie
Schleuning, City Attorney Charlie LeFevere, and Mary Mullen, TimeSaver Off Site Secretarial,
Inc.
3.APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Kleven moved and Commissioner Ryan seconded approval of the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. November 25, 2013 — Regular Session
Motion passed unanimously.
4.COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2013-19 APPROVING FINAL BUDGET FOR THE CITY OF
BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY FOR
FISCAL YEAR 2014
Executive Director Curt Boganey introduced the item, discussed the history, and stated the
purpose of the proposed resolution.
12/09/13 -1- DRAFT
Executive Director Boganey introduced the resolution, and noted that the EDA is responsible for
the overall economic development of the community, and its budget supports staff and other
expenses. He added staff recommends approval of the resolution.
Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded adoption of
RESOLUTION NO. 2013-19 Approving Final Budget of the City of Brooklyn Center Economic
Development Authority for Fiscal Year 2014.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Myszkowski moved and Commissioner Ryan seconded adjournment of the
Economic Development Authority meeting at 7:08 p.m.
Motion passed unanimously.
12/09/13 -2- DRAFT
EDA Agenda Item No. 4a
COUNCIL ITEM MEMORANDUM
TO: Curt Boganey, City Manager
FROM: Sharon Knutson, City Clerk
DATE: January 8, 2014
SUBJECT: EDA Resolution Electing Officers for the Economic Development Authority in
and for the City of Brooklyn Center
Recommendation:
It is recommended that the Economic Development Authority consider adoption of EDA
Resolution Electing Officers for the Economic Development Authority in and for the City of
Brooklyn Center.
Background:
Minn. Stat. 469.096 provides that an Economic Development Authority shall elect a president,
treasurer, and secretary on an annual basis. EDA Resolution No. 87-06 also states in Article II,
Section 7, that the president, vice-president, secretary, treasurer, and assistant treasurer shall be
elected at the annual meeting of the Authority and shall hold office for one year or until
successors are elected and qualified.
The attached EDA resolution elects such positions for the Economic Development Authority.
Budget Issues:
There are no budget issues to consider.
Attachments
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Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER
WHEREAS, Minnesota Statutes Section 469.096 provides that an economic
development authority shall elect a president, treasurer, and secretary on an annual basis.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City Council of the City of Brooklyn Center, Minnesota, that the Authority hereby
elects the following officers to serve through December 31, 2013, or such later date as their
successors are elected and qualified:
President/Treasurer Tim Willson
Vice-President Dan Ryan
Assistant Treasurer Nathan Reinhardt
Secretary Gary Eitel
January 13, 2014
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
1 MINNESOTA STATUTES 2013 469.096
469.096 OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
Subdivision 1. Bylaws, rules, seal. An authority may adopt bylaws and rules of procedure
and shall adopt an official seal.
Subd. 2. Officers. An authority shall elect a president, a vice-president, a treasurer, a
secretary, and an assistant treasurer. The authority shall elect the president, treasurer, and secretary
annually. A commissioner must not serve as president and vice-president at the same time. The
other offices may be held by the same commissioner. The offices of secretary and assistant
treasurer need not be held by a commissioner.
Subd. 3. Duties and powers. The officers have the usual duties and powers of their offices.
They may be given other duties and powers by the authority.
Subd. 4. Treasurer's duties. The treasurer:
(1)shall receive and is responsible for authority money;
(2)is responsible for the acts of the assistant treasurer;
(3)shall disburse authority money by check only;
(4)shall keep an account of the source of all receipts, and the nature, purpose, and authority
of all disbursements; and
(5) shall file the authority's detailed financial statement with its secretary at least once a
year at times set by the authority.
Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of the
treasurer if the treasurer is absent or disabled.
Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned for the
faithful discharge of official duties. The bond must be approved as to form and surety by the
authority and filed with the secretary. The bond must be for twice the amount of money likely
to be on hand at any one time, as determined at least annually by the authority provided that
the bond must not exceed $300,000.
Subd. 7. Public money. Authority money is public money.
Subd. 8. Checks. An authority check must be signed by the treasurer and one other officer
named by the authority in a resolution. The check must state the name of the payee and the
nature of the claim that the check is issued for.
Subd. 9. Financial statement. The authority's detailed financial statement must show all
receipts and disbursements, their nature, the money on hand, the purposes to which the money on
hand is to be applied, the authority's credits and assets, and its outstanding liabilities in a form
required for the city's financial statements. The authority shall examine the statement together
with the treasurer's vouchers. If the authority finds that the statement and vouchers are correct, it
shall approve them by resolution and enter the resolution in its records.
History: 1987 c 291 s 97
Copyright 0 2013 by the Office of the Revisor of Statutes, State of Minnesota. All Rights Reserved.
Member Gene Lhotka introduced the following
resolution and moved its adoption:
EDA RESOLUTION NO. 87-06
RESOLUTION ADOPTING BYLAWS OF THE BROOKLYN CENTER
ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS, the Economic Development Authority of Brooklyn
Center, Minnesota is organized and operates pursuant to Minn.
Stat., Chapter 458C.
NOW, THEREFORE, BE IT RESOLVED that the Economic
Development Authority of Brooklyn Center, Minnesota, hereby
adopts and approves the following bylaws:
ARTICLE I - THE AUTHORITY
Section 1. Name of Authority. The name of the
Authority is the "Economic Development Authority of Brooklyn
Center, Minnesota."
Section 2. Seal of Authority. The seal of the
Authority shall be in the form of a circle and shall bear the
name of the Authority.
Section 3. Office of Authority. The offices of the
Authority are at City Hall in the City of Brooklyn Center, State
of Minnesota, or at such other place as the Authority may
designate by resolution.
ARTICLE II - OFFICERS
Section 1. Officers. The officers of the Authority
are the President, Vice-President, Secretary, Treasurer, and
Assistant Treasurer.
Section 2. President. At the annual meeting, the
President shall submit to the Authority a report summarizing the
activities and programs of the Authority for the past year and
containing the President's recommendation for Authority
activities for the ensuing year.
Section 3. Vice-President. The Vice-President shall
perform the duties of the President in the absence or incapacity
of the President; and in case of the resignation or death of the
President, the Vice-President shall perform such duties as are
imposed on the President until such time as the Authority shall
select a new President.
Section 4. Secretary and Treasurer. The Secretary and
Treasurer shall perform the duties of a Secretary and Treasurer,
respectively, for the Authority. The Treasurer shall sign all
orders and checks for the payment of money and shall pay out and
EDA RESOLUTION NO. 87-06
disburse such monies under the direction of the Authority.
Except as otherwise authorized by resolution of the Authority,
all such orders and checks shall also be counter-signed by the
President. The Treasurer shall be responsible for the care and
custody of all funds of the Authority, and he shall be
responsible for the keeping of accounts showing receipts and
expenditures of the Authority. The Treasurer shall render to the
Authority an account of financial condition of the Authority as
may be requested by the Authority. Once each year on or before
the last day of June, the Treasurer shall submit an audited
detailed financial statement to the Authority covering the entire
financial operations of the Authority for the preceding fiscal
year hereby defined as the calendar year. The Secretary shall
keep in safe custody the seal of the Authority and shall have the
power to affix such seal to all contracts and instruments
authorized to be executed by the Authority.
Section 5. Executive Director. The Brooklyn Center
city manager shall serve as Executive Director of the Authority
and shall have general supervision over the administration and
management of its business and affairs subject to the direction
of the Authority. The Executive Director shall keep a record of
the proceedings of the Authority. The Executive Director shall
cosign all contracts, deeds, and similar instruments to which the
Authority is a party.
Section 6. Additional Duties. The officers of the
Authority shall perform such other duties and functions as may
from time to time be required by the Authority or the bylaws or
rules and regulations of the Authority.
Section 7. Election or Appointment. The President,
Vice-President, Secretary, Treasurer, and Assistant Treasurer
shall be elected at the annual meeting of the Authority and shall
hold office for one year or until successors are elected and
qualified.
Section 8. Vacancies. Should the office of the
President, Vice-President, Secretary, Treasurer, or Assistant
Treasurer become vacant, pursuant to Minn. Stat. Section 351.02
or by other provisions of law, the Authority shall elect a
successor from its membership at the next regular meeting, and
such election shall be for the unexpired term of the office.
Section 9. Additional Personnel. The Authority may
from time to time employ or contract for such personnel as it
deems necessary to exercise its powers, duties, and functions as
prescribed by Minn. Stat., Chapter 458C, applicable thereto.
Such personnel may be employees of the Authority, employees of
other governmental organizations, or independent contractors.
The selection and compensation of such personnel shall be
determined by the Authority subject to the laws of the State of
Minnesota.
EDA RESOLUTION NO. 87-06
ARTICLE III - MEETINGS
Section 1. Annual Meeting. The annual meeting of the
Authority shall be held on the first business day of January.
Section 2. Meeting Schedule. The meeting schedule of
the Authority shall be developed by the Executive Director.
Section 3. Special Meetings. Special meetings of the
Authority may be called by the President, or two members of the
Authority for the purpose of transacting any business designated
in the call. The call for a special meeting may be delivered at
any time prior to the time of the proposed meeting to each member
of the Authority or may be mailed to the business or home address
of each member of the Authority at least two days prior to the
date of such special meeting. At such special meeting no
business shall be considered other than as designated in the
call, but if all of the members of the Authority are present at a
special meeting, any and all business may be transacted at such
special meeting by unanimous vote.
Section 4. Quorum. Three members of the Authority
shall constitute a quorum to do business, but a smaller number
may adjourn from time to time. When a quorum is in attendance,
action may be taken by the Authority upon a vote of a majority of
the members present.
Section 5. Manner of Voting. The voting on all
questions coming before the Authority shall be by roll call and
the yeas and nays shall be entered upon the minutes of such
meetings.
ARTICLE IV - AMENDMENTS
Section 1. Amendments to Bylaws. The bylaws of the
Authority may be amended only with the approval of at least three
members of the Authority.
November 9, 1987
Date Chairman:/
The motion for the adoption of the foregoing resolution was duly
seconded by member Bill Hawes , and upon vote being taken
thereon, the following voted in favor thereof: Dean Nyquist,
Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis;and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted.
EPA Agenda Item No. 4b
EDA 1[T Vi MEMORANDUM
DATE: January 13, 2014
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business and Development Z.
SUBJECT: Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor (6031 Brooklyn Boulevard)
Recommendation:
It is recommended that the Economic Development Authority consider approval/adoption of a
Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements
and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (6031 Brooklyn
Boulevard).
Background:
On November 12, 2013, the Economic Development Authority (EDA), in an Executive Session,
provided direction to accept the sales offer by Rosewater, LLC, and proceed with the preparation
of a purchase agreement to acquire 6031 Brooklyn Boulevard to facilitate Neighborhood
Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor.
Attached for your reference is a copy of the November 12, 2013 staff memorandum presented at
that meeting.
Proposed Sales:
The property owner, Rosewater Investment, LLC, has indicated they are interested in selling
6031 Brooklyn Boulevard to the EDA for the cunent assessed valuation of $105,900. The
property is zoned R-1 Single Family Residential with a lot area of 11,250 sq. ft. (75'x150') and a
rambler style residence that was constructed in 1955.
The Assessor's records indicate the following assessed valuations:
- Real Estate Taxes Payable in 2013 $105,900
- Real Estate Taxes Payable in 2012 $93,300 (reflects fire damage condition)
- Real Estate Taxes Payable in 2011 $115,200
The last two recorded sales for this property are:
September 29, 2009 $ 63,000 (foreclosure sale)
December 1, 2003 $169,000
It is our understanding that the current property owner placed an $89,000 mortgage on the
property and has made improvements to the residence, including renovations to the basement to
qualify as a four bedroom house, to maximize its potential rental income.
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
It is also our understanding that the property is in the final stages of a foreclosure process.
The proceeds of this closing will be applied to the payment of levied special assessments
($8,890.88), current utility billing ($465.72), and the mortgage amount paid at the Sheriffs
foreclosure auction ($94,59.15 plus interest), and the standard closing costs and registration fees.
Tax Increment Finance District No. 3:
Tax Increment Finance (TIF) 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
Finance 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.
0 This program also recognized that if an appropriate use for the land is not imminent, the
property will be land banked until such time an appropriate use becomes available.
Attached for your reference is an aerial photograph for the 6000 - 6100 block of Brooklyn
Boulevard which identifies the foreclosed and voluntary sales the EDA has acquired as part of
the reshaping and reimaging of the Brooklyn Boulevard Corridor.
The acquisition of this property and removal of the single family residence is consistent with the
Community Image Objectives as identified in the 2030 Comprehensive Plan and the guidelines
identified in the 2013 Brooklyn Boulevard Corridor Study.
BUDGET ISSUES:
The acquisition and the demolition costs of this property are eligible TIF 3 Housing expenditures
and were included in the Housing Component of the 2013 TIF 3 Bond Sales.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for people and preserves the public trust
EDA ITEM MEMORANDUM
If the EDA determines 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:
• Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
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Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THE ACQUISITION OF PROPERTY TO
FACILIATE NEIGBHORHOOD IMPROVEMENTS AND REDEVELOPMENT
OPPORTUNITIES WITHIN THE BROOKLYN BOULEVARD CORRIDOR (6031
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
•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 6031 Brooklyn Boulevard (the "Subject
Property") is a voluntary sale by the property owner; and
WHEREAS, the property owners, Rosewater Investment, LLC, have offered to sell
the subject property to the EDA for the amount of $105,900 which represents the assessed market
value of the property for taxes payable in 2013; and
WHEREAS, the EDA has determined acquisition of the Subject Property is consistent
with the goals and objectives of the Brooklyn Boulevard Streetscape Amenities Study, the City's
Comprehensive Plan, the vision of the 2013 Brooklyn Boulevard Conidor Study, and the Tax
Increment District No. 3 Housing Program and is in the best interest 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 EDA accepts the voluntary sales offer by Rosewater Investment, LLC, to
purchase the Subject Property for $105,900.
2.That the City Attorney is hereby authorized to prepare the necessary purchase
agreement.
3. 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.
January 13, 2014
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.
436435v2 RJL 13R305-126
..... . . • • • • I
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (the "Agreement") is made as of this _day of
December, 2013, by and between Rosewater LLC, a Minnesota Limited Liability Company
("Seller") and the Economic Development Authority of Brooklyn Center, Minnesota, a public
body corporate and politic under Minnesota law ("EDA" or "Buyer").
RECITALS
A.Seller is the owner of property located at 6031 Brooklyn Blvd., Brooklyn Center,
Minnesota, which is legally described on the attached Exhibit A ("Property"). The
Property includes all plants, shrubs and trees, storm windows and/or inserts, storm
doors, screens, awnings, window shades, blinds, curtain-traverse-drapery rods,
attached lighting fixtures with bulbs, plumbing fixtures, water heater, heating system,
humidifier, central air conditioning, electronic air filter, automatic garage door opener
with controls, water softener, cable television outlets and cabling, and built-ins,
including dishwasher, garbage disposal, trash compactor, oven(s), cook top stove,
microwave oven, hood-fan, intercom and installed carpeting located on the premises
which are the property of Seller. The Property also includes the following personal
property: NONE.
B.Buyer desires to purchase the Property according to the terms and conditions of this
Agreement.
AGREEMENT
1.Offer/Acceptance for Sale of Property. The Seller agrees to sell the Property to the
EDA and the EDA agrees to purchase the same, according to the terms of this Agreement.
2.Purchase Price for Property and Terms.
A.PURCHASE PRICE: The total purchase price for the Property is One Hundred
Five Thousand Nine Hundred and 00/100ths Dollars ($105,900) (the "Purchase
Price").
B.TERMS:
(I): EARNEST MONEY. No Earnest Money shall be paid by the Buyer to
the Seller.
(2): BALANCE DUE SELLER. Buyer agrees to pay the entire Purchase Price
due to Seller for the Property according to the terms of this Agreement.
by check or electronic transfer of funds on the date of closing (the "Closing
Date").
(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.
Reservation of minerals or mineral rights to the State of
Minnesota, if any,
c. Public utility and drainage easements of record which will not
interfere with Buyer's intended use of the Property.
(4):DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In
addition to the Warranty Deed required at paragraph 2B(3) above, Seller
shall deliver to the Buyer:
a.Standard form Affidavit of Seller,
b.A "bring-down" certificate, certifying that all of the warranties made
by Seller in this Agreement remain true as of the Closing Date.
c.Certificate that Seller is not a foreign national.
d.If an environmental investigation by or on behalf of the Buyer
discloses the existence of petroleum product or other pollutant,
contaminant or other hazardous substance on the Property,
other than asbestos, Seller will provide either (i) a closure
letter from the Minnesota Pollution Control Agency (MPCA)
or other appropriate regulatory authority that remediation has been
completed to the satisfaction of the MPCA or other authority; or (ii)
Agreement for remediation/indemnification and security as the
EDA may require.
e, Well disclosure certification, if required, or, if there is no well on the
Property, the Warranty Deed given pursuant to paragraph 2B(3)
above must include the following statement: "The Seller certifies
that the Seller does not know of any wells on the described real
property,"
If Seller is unaware of the location of a well and there is a building
permit issued for the Property prior to installation of a City water
system, the Seller agrees to have a licensed well contractor
examine the Property for purposes of locating a well, Buyer will
be responsible for the cost of sealing any well.
2
436435v2 RJL BR305-126
f. Any other documents reasonably required by the EDA's title
insurance company or attorney to evidence that title to the Property
is marketable and that Seller has complied with the terms of this
Agreement.
3. Contingencies. Buyer's obligation to buy is contingent upon the following:
(a)Buyer's determination, in its sole discretion, that the results of any
environmental investigation of the Property conducted pursuant to this
Agreement are satisfactory to Buyer. Buyer shall have until
201_ to make its determination.
(b)Approval of this Agreement by the Board of Commissioners of the EDA, no
later than January 13, 2014.
0 Redemption of the Property from Sheriffs Certificate. It is understood by
the parties that the Purchase Price amount may be less than the outstanding
balance owed pursuant to the Sheriffs Certificate encumbering the Property, and
that Seller will need to redeem the Property from the Sheriff's Certificate and
otherwise deliver marketable title to the Property to the EDA in order to
complete the sale to the EDA pursuant to this Agreement.
The contingency at (a) above is solely for the benefit of Buyer and may be waived by Buyer. If
Buyer or its attorney gives written notice to Seller that the contingency at (a) is duly satisfied or
waived, the Buyer and Seller shall proceed to close the transaction as contemplated herein if
other contingencies have been satisfied„ The contingencies at (b) and (c) above may not be waived
by either party.
If one or more of Buyer's or Seller's contingencies is not satisfied, or is not satisfied on time, and is
not waived, this Agreement shall automatically be void. In that event, Seller shall return the
Earnest Money, if any, to Buyer, and Buyer and Seller .shall execute and deliver to each other a
termination of this Agreement. As a contingent Agreernent, the termination of this Agreement is
not required pursuant to Minnesota Statutes, Section 559.21, et. seq.
Seller is expressly cautioned that this Agreement is not binding until all contingencies have
been waived or satisfied. If Seller purchases a replacement dwelling before this Agreement
is binding, Seller takes all risk of this Agreement being terminated, including the risk that
Seller will be financially responsible for both the Property and the replacement dwelling.
4. Title Examination/Curing Title Defects. As soon as reasonably possible after
execution of this Agreement by both parties,
(a) Seller shall surrender any abstract of title and a copy of any owner's title
insurance policy for the property, if in Seller's possession or control, to Buyer or to Buyer's
designated title service provider; and
3
436435y2 RJL 13R305-126
(b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer,
The Buyer shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within' such time will be deemed waived.
The Seller shall have 90 days from the date of such objection to effect a cure; provided, however,
that the Seller shall have no obligation to cure any objections, and may inform Buyer of such.
The Buyer may then elect any of the following: (a) close notwithstanding the uncured
objections; or (b) declare this Agreement null and void, Seller shall return the Earnest Money to
Buyer, and the parties will thereby be released from any further obligation hereunder
5.Environmental Investigation. The Seller warrants that the Property has not
been used for production, storage, deposit or disposal of any toxic or hazardous waste or
substance, petroleum product or asbestos product during the period of time the Seller has owned
the Property, The Seller further warrants that the Seiler has no knowledge or information of any
fact which would indicate the Property was used for production, storage, deposit or disposal of
any toxic or hazardous waste or substance, petroleum product or asbestos product prior to the
date the Seller purchased the Property. Notwithstanding the above, the Seller's warranty
regarding petroleum products does not preclude the presence of heating oil or other similar
products used as a heating fuel for the dwelling but the Seller does warrant that if there was a
fuel tank on the Property used for the storage of heating oil or other similar product, the Seller
has no knowledge of any leak in the tank or contamination caused thereby.
Seller hereby grants to Buyer and Buyer's agents a license to enter and evaluate the Property for
the purpose of conducting an environmental assessment, Further, the Buyer or Buyer's agent
shall have the right pursuant to the license to bring persons and equipment onto the Property,
make inspections and perform tests and analyses as Buyer may deem reasonable to determine the
presence of any toxic or hazardous waste, substance, or petroleum product or asbestos product,
and ascertain soil conditions on the Property. Buyer shall bear the cost of the environmental
assessment. If the results of the environmental assessment are not to the satisfaction of the
Buyer, the Buyer at its sole discretion may cancel this Agreement; provided, however, that the
presence of asbestos may not be not a basis for canceling this Agreement. If the Buyer cancels
this Agreement pursuant to this provision, the Buyer shall restore the Property to its original
condition or nearly so as is reasonably practicable.
6.Real Estate Taxes and Special Assessments. Real estate taxes payable in the
year of closing will be pro-rated between the Buyer and Seller to the Closing Date. Seller shall pay
all real estate taxes payable in previous years, the entire unpaid balance of all levied special
assessments, including installments payable after the year of closing, Seller also agrees to pay all
assessments related to service charges furnished to the Property prior to the Closing Date (e.g.,
delinquent water or sewer bills, removed or diseased trees), including those charges levied,
pending, or certified to taxes payable in the year of closing. If closing occurs prior to the date the
amount of real estate taxes due in the year of closing are available from Hennepin County, the
current year's taxes will be pro-rated based on the amount due in the prior year.
, 7. Closing Date. The Closing Date will be on or before February 14, 2014.
Delivery of all papers and the closing shall be made at the offices of the EDA at 6301 Shingle
4
436435v2 RIL 13R305-126
Creek Parkway, Brooklyn Center, Minnesota 5 .430-2113, or at such other location as is
mutually agreed upon by, the parties. All deliveries and notices to City shall be made to the above
address and marked to the attention of Gary Eitel.
8. Possession/Utilities/Removal of Property/Escrow.
(a) • • Possession. The .Seller agrees to deliver possession of the Property to Buyer not
later than the Closing Date. •
(b).Utilities, City water and sewer charges, electricity and natural gas charges, fuel
oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. Seller
shall arrange for final readings as of the Closing Date.
(c).• • Personal Property. The Seller agrees to remove all debris and all personal
property not included herein from the Property before the possession date. Personal property not
• so removed shall be deemed forfeited to and shall become the property of the Buyer. The Buyer
may inspect the Property immediately prior to closing and deduct from the purchase price
payable at closing an amount reasonably necessary to pay for the cog of removal of any debris
or personal property then remaining on the Property. The provisions of this paragraph shall not
merge with the deed and shall survive closing on the property.
(d) • Salvage.. Seller may remove the following fixtures from the Property prior to
Closing, provided Seller does not cause unnecessary damage to the Property:
(d)Escrow.. Seller agrees that, at closing, the EDA may retain Five Hundred
Dollars ($500:00) from the, purchase price for the Property as an Escrow for payment of
personal property removal, . disposal charges and utility charges. The retained amount, less
deductions provided for this in paragraph 8, will be delivered to Seller no later than 60 days
following the Closing Date or delivery of possession, whichever is later. Said funds shall be held by
Kennedy & Graven, Chartered, as Escrow Agent, pursuant to the terms of the Escrow Agreement
attached here as Exhibit C.
(e)Amounts Due. The EDA's ability to deduct amounts due under this paragraph
from the retained escrow is not exclusive but is in addition to the EDA's rights at law and equity
to collect such amounts from Seller. The Seller is responsible for the amounts due under this
paragraph even if: 0) the EDA neglects to deduct the amount from escrow; or (ii) the escrowed
amount is insufficient to pay all amounts due under this paragraph -8.
9, Seller Warranties.
(a) Sewer and Water, Seller warrants that the Property , is connected to City
sewer and City water.
436435v2 RJL 13R305-126
(b)Mechanics' Liens, Seller warrants that, prior to the •cloSing, Seller shall pay in full
all amounts due for labor, materials, machinery, fixtures or tools itirnished within the 120 days
immediately preceding the closing in connection with constructiOn, alteration or repair of any
structure upon or improvement to the Property.
(c)Notices. S eller warrants that it has not received any notice from any
governmental authority as to violation of any law, ordinance or regulation in Connection with the
Property.
(d) Tenants. Seller warrants that the Property is not DOW occupied by tenants and
•was not occupied by tenants at the time the Seller first 'received the Buyer's written offer to
purchase the Property, and will not be occupied by tenants on the date of closing..
(e) Broker Commission. Each party represents to the other, that it has not utilized the
servides of any real estate broker or agent in connection with this Agreement or the transaction
contemplated by this Agreement. Each party agrees to indemnify, defend, and hold harmless the
other Party against and in respect of any such obligation and liability based in any way upon
agreements, arrangements, or understandings made or claimed to have been made by the party
with any third person.
(I) Structures. The Seller warrants that the buildings, if any, are entirely within the
boundary lines of the Property. The parties acknowledge that the Property is being sold in "as is"
condition relating to the structural, operational, and mechanical systems.
10.Closing Costs/Recording Fees/Deed Tax .._ The EDA will pay: (a) the closing fees
, charged .by the title insurance *or other closing agent, if any, utilized to close the
transaction contemplated by this Agreement; (b) fees for title evidence obtained by the EDA; and
(c) the recording fee for. the deed transferring title to the EDA. Seller will pay all other fees
normally paid by sellers, including (a) any transfer taxes, recording fees and Well Disclosure fees
required to enable the EDA to record. its deed from Seller under. this Agreement, and (b) fees and
charges related to the filing of any instrument required to make title. marketable. Each party shall
pay its OWR attorney fees.
11.Inspections. From the date of this Agreement to the Closing Date, EDA its
employees and agents, shall be entitled to enter upon the Property to conduct such surveying,
inspections, investigations, soil borings and testing, and drilling, monitoring, sampling and
testing of groundwater monitoring wells, as the EDA shall elect; provided, that Seller is given at
least 24 hours' notice.
•
12, Risk of Loss. It there is any loss or dathage to the Property between the date
hereof and the Closing Date, for any reason including fire, vandalism, flood, earthquake or act of
God, the risk of loss shall be on the Seller. If the Property is destroyed or substantially damaged
before the closing date, this Agreenient shall become null and void, at the EDA's option. At the
request of the EDA, Seller agrees to sign a cancellation of:Agreement. •
13. Relocation. The .Buyer is an "acquiring authority" within the meaning of the
6
436435v2 RJ1,13R305-126
Minnesota Uniform Relocation Act, Minn. Stat. § 117.50 to 117.56 ("MURA"). At Closing,
Seller agrees to execute a waiver of relocation benefits in the form attached hereto as Exhibit
C, confirming Seller's Waiver of relocation benefits to which Seller may otherwise be eligible
under MURA.
14.Default/Remedies. If the Buyer defaults in any of the covenants herein, the
Seller may terminate this Agreement, and on such termination all payments made hereunder shall
be retained by the Seller as liquidated damages, time being of the essence. This provision shall
not deprive either party of the right to enforce specific performance of this Agreement, provided
this Agreement has not been terminated and action to enforce specific performance is
commenced within six months after such right of action arises. In the event the Buyer defaults in
its performance of the terms of this Agreement and Notice of Cancellation is served upon the
Buyer pursuant to Minn. Stat. Section 559.21, the termination period shall be thirty (30) days as
permitted by Minn, Stat., Section 559.21, Subd. 4,
15.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 personally served upon one of the following indicated recipients for notices or is deposited in
the United States Mail, registered or certified, return receipt requested, postage prepaid and
addressed as follows:
SELLER:
. BUYER:
Rosewater LLC
Attn.Emeka G. Okeakpu, President
3914 Hubbard Ave. No.
Robbinsdale, MN 55422
EDA of Brooklyn Center
Attn: Gary Eitel
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2113
AGENT:Kennedy & Graven, Chartered
ATTN: Robert J. Lindall and . •
Catherine B. Rocklitz
470 U.S, Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
16. Entire Agreement. This Agreement, Exhibits, and other amendments signed by
the parties, shall constitute the entire Agreement between Seller arid the EDA and supersedes any
other written or oral agreeinents between the parties relating to the Property. This Agreement
can be modified only in a writing properly signed on behalf of Seller and the EDA.
7
436435v2 RJL 135305-126
17. Survival. Notwithstanding any other provisions of law or court decision to the
contrary, the provisions of this Agreement shall survive closing.
IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date and year
above.
Buyer: Seller:
Economic Development Authority of Brooklyn Rosewater LLC, a jnnesota Limited
Center, Minnesota Liabil4 Company
By v
By: Emeka G. Okeakpu
Its President
Its President
8
436435v2 RILBR305-126
EXHIBIT A
Legal Description of Property
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 South line of Section 34, Township 119 North, Range 21 West, distant
1741.08 feet West of the Southeast corner thereof, run Northwesterly at an angle of 68 degrees
01 minutes 52.3 seconds with said South section line for 432.38 feet to the point of beginning of
the line to be described; thence run Southeasterly along the last described course for 100 feet;
thence deflect to the right on a 2 degree 00 minutes curve (delta angle 17 degree 20 minutes 35.2
seconds) for 867.16 feet and there terminating. Block 1, Pearson's Northport 3 1 Addition.
According to the plat thereof on file and of record in the Office of the Registrar of Titles in and
for Hennepin County, Minnesota.
Certificate of Title No. 1323697.
Located at 6031 Brooklyn Blvd., Brooklyn Center, MN.
Property Tax Identification No. 03-118-21-12-0015
A-1
436435v2 RM. 13R305-126
EXhIBIT B
Escrow ARreement .
THIS AGREEMENT entered into this day of 201_, by and
between Rosewater LLC, a Limited Liability Company under Minnesota law ("Seller"), the
Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and
politic under Minnesota law ("EDA" or "Buyer"), and KENNEDY & GRAVEN, CHARTERED
("Escrow Agent" or "Agent").
RECITALS .
A.Seller and BUyer have 'entered into a Purchase Agreement dated December_, 2013
("Purchase Agreement") for the sale of property located at 6031 Brooklyn
Blvd., Brooklyn Center, Minnesota and legally described on the attached Exhibit
One (the ("Property"),
B.The parties desire to close the sale of the Property on February 14, 2014.
AGREEMENT
The parties agree as follows:
1. Delivery of Possession. Seller shall deliver possession of the Property to Buyer in
accordance with the Purchase Agreement entered into by the parties. The
Purchase Agreement requires the Seller to pay all unpaid utilities and to remove
all personal property from the Property upon closing.
Escrow. (a) Upon closing and execution of this Agreement, Seller agrees to
deposit into escrow the sum of $1,000.00 (the "Escrowed Funds") from the
purchase price, to be held by Agent in a non-interest bearing account,
(b)Within 7 days after requested by Agent, Buyer shall provide to Agent (with
copy to Seller) evidence of expenses incurred for the removal and disposal of
personal property and for payment of utility charges for services provided to the
Property prior to date of possession, if any. Agent shall reimburse Buyer for the
incurred expenses from the Escrowed Funds within 7 days following receipt of
such evidence from Buyer.
(c)Agent shall deliver to Seller the balance of the Escrowed Funds on deposit,
less deductions provided for in paragraph 2(b) above, no later than 30 days
following vacation of the Property by Seller.
B-1
436435v2 RH, 13R305-126
3, Escrow Agent Liability. The sole duties of Escrow Agent shall be those described
herein, and Escrow Agent shall be under no obligation to determine whether the
other parties hereto are complying with any requirements of law or the terms and
conditions of any other agreements among said parties. Escrow Agent shall have no
duty or liability to verify any amounts deducted from the retained amount and
Agent's sole responsibility shall be to act expressly as set forth in this Escrow
Agreement. Escrow Agent may conclusively rely upon and shall be protected in
acting on any notice believed by it to be genuine and to have been signed or
presented by the proper party or parties, consistent with reasonable due diligence on
Escrow Agent's part. Escrow Agent shall have no duty or liability to verify any
such notice, and its sole responsibility shall be to act expressly as set forth in this
Escrow Agreement.
Seller and Buyer understand that Agent is legal counsel to the Buyer and each
consents to Agent's serving as Escrow Agent notwithstanding such representation.
In the event Agent determines, in its sole discretion, that it cannot continue to serve as
EscrovV Agent herein, Agent shall deposit the EscroWed Funds with Old Republic
National Title Insurance Company or such other Escrow Agent as is mutually
acceptable to Seller and Buyer. Seller consents to Agent's continued representation
of Buyer after a deposit is made, and Buyer agrees to pay all escrow fees charged by
the substitute Escrow Agent.
4. Notices to be sent to the parties to this Agreement shall be sent by mail or
personal delivery to:
SELLER:
AGENT:
Rosewater, LLC
Attn.Erneka G. Okeakpu
President
3914 Hubbard Ave. No.
Robbinsdale, MN 55422
EDA of Brooklyn Center
Attn: Gary Eitel
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2113
Kennedy & Graven, Chartered
ATTN: Robert J. Lindall and
Catherine B. Rocklitz
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
IN WITNESS WHEREOF, the parties have executed this agreement as of the date
written above.
B-2
436435v2 RiL BR305-12¢
SELLER;BUYER;
ECONOMIC DEVELOPMENT
AUTHORITY OF BROOKLYN CENTER,
MINNESOTA
ESCROW AGENT:
KENNEDY & GRAVEN, CHARTERED
By:
B-3
436435v:21331,13R305-126
Exhibit One
Legal Description of Property
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 South line of Section 34, Township 119 North, Range 21 West, distant
1741.08 feet West of the Southeast corner thereof, run Northwesterly at an angle of 68 degrees
01 minutes 52.3 seconds with said South section line for 432.38 feet to the point of beginning of
the line to be described; thence run Southeasterly along the last described course for 100 feet;
thence deflect to the right on a 2 degree 00 minutes curve (delta angle 17 degree 20 minutes 35.2
seconds) for 867.16 feet and there terminating. Block 1, Pearson's Northport 3 rd Addition.
According to the plat thereof on file and of record in the Office of the Registrar of Titles in and
for Hennepin County, Minnesota.
Certificate of Title No. 1323697.
Located at 6031 Brooklyn Blvd., Brooklyn Center, MN.
Property Tax Identification No. 03-118-21-12-0015
B-4
436435v2 12.11,11R305-126
EXHIBIT C TO PURCHASE AGREEMENT
WAIVER OF RELOCATION BENEFITS
I, the undersigned, am the Chief Manager of Rosewater, LLC, a Minnesota Limited Liability
Company, and 1 execute this waiver on behalf of said Rosewater, LLC., ("Owner"). The owner
has entered into a Purchase Agreement under which it has agreed to sell Owner's property located
at 6031 Brooklyn Blvd., Brooklyn Center, MN 55429 ("Property") to Economic Development
Authority of Brooklyn Center, Minnesota ("EDA").
I acknowledge that I met with Dan Wilson of Wilson Development Services, a relocation
counselor ("Counselor") retained by the EDA on , 2013. Counselor explained
that in the event that the EDA acquires the Property, Owner may be entitled to certain relocation
benefits, in addition to the amount of mOney being paid to Owner to acquire the Property. These
benefits may include:
I. Moving Expenses:
a.A payment for actual reasonable moving expenses; or
b.A fixed payment determined in accordance with the applicable schedule approved
by the Federal Highway Administration,
2..eestablishment expenses - nonresidential moves.
A payment for expenses actually incurred in relocating and reestablishing an eligible small
. business, farm or nonprofit organization from the Property to a replacement site, which
payment cannot exceed $50,000.00.
3.Alternative Fixed Payment - nonresidential moves.
A fixed payment in lieu of the payments described in paragraphs 1 and 2 above, equal to
the average annual net earnings of the business, but not less than $1,000 and not more than
$20,000.
4. Other Relocation Assistance:
This includes referrals and other assistance to help the business owner relocate its business.
Finally, it was explained to me that the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 as amended, may entitle Owner to these relocation benefits; and if
I sign this agreement, I will be waiving those relocation benefits on behalf of Owner.
After having these benefits explained to me, I agree to waive them on behalf of Owner.
C-1
436435v2 1131., BR3O5-126
Publi
In signing this agreement, I acknowledge that no threats have been made to me or any other
representative of Owner, either expressly or by implication that, if Owner does not sell the
Property the Property may be acquired by the EDA under the power of eminent domain or
otherwise. If after signing this agreement, Owner attempts to collect relocation benefits, Owner
will be required to prove that, contrary to what it has agreed to in this agreement, this waiver of
relocation benefits was not entered into voluntarily.
further acknowledge that Owner has entered into a Purchase Agreement for the sale of the
Property to EDA for the gross purchase price of $105,900. I acknowledge that payment of the
purchase price as described in the Purchase Agreement satisfies in full any amounts for relocation
assistance or relocation benefits that the EDA otherwise may be obligated to pay to Owner and that
the purchase price shall be the sole compensation due Owner for all claims of any description
against the EDA or City of Brooklyn Center as a result of EDA's acquiring the Property as
described in the Purchase Agreement, including but not limited to attorneys' fees, relocation
benefits, and any damages to the going concern or goodwill of any business owned by Owner and
which is located on the Property, the purchase price having included considerations for any and all
such claims.
Rosewa.er, LLC
By Q WAftA-17._.)
Emeka G. Okeakpu
Its President
STATE OF MINNESOTA
) SS
COUNTY OF *L €A\
The foregoing instrument was acknowledged before me thii-7--; day of tAktf),-4-1‘, 2014by
Emeka G. Okeakpu, the Presdent of Rosewater, LLC, a Minnesota Limited Liability Company, on
behalf of the limited liability company.
LORD EVANS EDUAMAH
'Notary Public
)Minnesota
My Comm. Expires ICJan 31, 2017•
C-2
436435v2 RE, 05305426
EDA FEY MEMORANDUM
DATE: November 12, 2013
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business & Development INC--
SUBJECT: Proposal by Rockwell Investment Co., to Sell 6031 Brooklyn Boulevard to the
EDA.
Recommendation: It is recommended that the Economic Development Authority (EDA), in an
Executive Session, consider providing direction to staff regarding proceeding with the
preparation of a purchase agreement to acquire 6031 Brooklyn Boulevard to facilitate
Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard
Corridor.
Background:
On December 12, 2011, the City Council's Agenda included a discussion on the opportunity to
acquire 6031 Brooklyn Boulevard as part of the reimaging of the Brooklyn Boulevard Corridor.
The property experienced fire damage to a portion of the home and the property owner was
offering the EDA the opportunity to purchase the property in as-is condition for $100,000. The
Council expressed concerns that the negotiated sales price reflects both the condition of the
property and value of the improvements to be covered by the fire insurance claim.
The majority consensus of the City Council/EDA was to direct staff to proceed with the
negotiation for acquisition of 6031 Brooklyn Boulevard as part of the reimaging of the Brooklyn
Boulevard Corridor.
Attached for your reference is a copy of the December 12, 2011, City Council Study Session
minutes on this discussion and a copy of the staff memorandum on this item. At that time, the
property owner chose not to pursue the negotiations and made the repairs to the residence with
the intentions to continue the rental use of the property.
The City Clerk's records indicated that on July 23, 201,2 the owners applied for a rental license;
however, the license was not processed due to delinquent property taxes and utility payments.
The City Clerk sent monthly notices to the property owner on the need to resolve the
delinquencies. On October 19, 2012, the property owner was also advised that based on a rental
inspection and validated police service calls, the license application had been categorized as
Type IV — 6 month provisional license which required the submittal of a mitigation plan and the
completion of a Crime Free Housing Program Phases I, II, and III.
In August 2013, the rental ordinance violations on this property were considered by the
Hennepin County District Court. The property has been vacant since that time.
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
Proposed Sales:
The property owner, Rockwell Investment LLC, has indicated they are interested in selling 6031
Brooklyn Boulevard to the EDA for the current assessed valuation of $105,900. The property is
zoned R-1 Single Family Residential with a lot area of 11,250 sq. ft. (75'x150') and a rambler
style residence that was constructed in 1955.
The Assessor's records indicate the following assessed valuations:
- Real Estate Taxes Payable in 2013 $105,900
- Real Estate Taxes Payable in 2012 $93,300 (reflects fire damage condition)
- Real Estate Taxes Payable in 2011 $115,200
The last two recorded sales for this property are:
September 29, 2009 $ 63,000 (foreclosure sale)
December 1, 2003 $169,000
It is the staff's understanding that the current property owners placed an $89,009 mortgage on
the property and have made improvements to the residence to maximize its potential rental
income including renovations to the basement to qualify as a four bedroom house.
It is also our understanding that the property is now in the early stages of a foreclosure process
with a potential sheriff's sale in April 2014.
Tax Increment Finance District No. 3:
Tax Increment Finance (TIF) 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
Finance District No. 3:
0 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
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
to an enhanced and compatible use with the neighborhood and consistent with zoning
regulations and the City's Comprehensive Plan.
•This program also recognized that if an appropriate use for the land is not imminent, the
property will be land banked until such time an appropriate use becomes available.
Attached for your reference is an aerial photograph for the 6000 - 6100 block of Brooklyn
Boulevard which identifies the foreclosed and voluntary sales the EDA has acquired as part of
the reshaping and reimaging of the Brooklyn Boulevard Corridor.
The acquisition of this property and removal of the single family residence is consistent with the
Community Image Objectives as identified in the 2030 Comprehensive Plan and the guidelines
identified in the 2013 Brooklyn Boulevard Corridor Study.
BUDGET ISSUES:
The acquisition and the demolition costs of this property are eligible TIF 3 Housing expenditures
and are proposed to be funded with the proceeds of the TIF 3 Bond being considered by the City
Council on November 12, 2013.
If the EDA determines 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:
•Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
Rosewater LLC
2934 Colfax Avenue N.
Minneapolis, MN 55411
October 29 11 7013
City Council,
City of Brooklyn Center
Re: Offer for sale/ Purchase for 6031 Brookl n Boulevard
Un-behalf of Rosewater 11C, it is our intention to offer for purchase the above
mentioned property to the City of Brooklyn Center at a price indicated by Hennepin
County tax assessed value,
Thanks
Yo s Sincerely
Emek, 0, Okeakpu
President, Rosewater LLC
763-607-8371
3
BROOKLYN BOULEVARD PROPERTIES
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Or,
6031
Brooklyn Blvd.
August 20, 2013
= City Owned/Acquired Properties 0.03 0.06
0.05 0.1
0.12 mi
0 '.2 km,
= Property to be Acquired
— Highway
A 'ITEM MEMORANDUM
December 12, 2011
City Council Study Session Minutes
OPPORTUNITY TO ACQUIRE 6031 BROOKLYN BOULEVARD AS PART OF THE
REIMAGING OF THE BROOKLYN BOULEVARD CORRIDOR
Director of Business and Development Gary Eitel informed the City Council of the opportunity
to acquire the home at 6031 Brooklyn Boulevard. He noted it is a single-family residence
acquired by Rockwell Investment LLC on September 29, 2009, for $63,000. The owner pulled
building permits, proceeded with rehabbing the home, obtained an $89,000 mortgage, and a
rental license was issued in May of 2010. On November 16, 2011, there was a house fire at this
residence and the property is currently vacant. The property owner is offering the property, as is,
for $100,000.
Mr. Eitel used a map to point out two lots to the north and one to the south of the subject parcel
that the EDA already owns. He displayed pictures of the house and asked whether the Council
thinks the purchase of this property and removal of the single family residence will have a
positive effect on improving the image of Brooklyn Boulevard and if it is in the public interest to
direct staff to pursue negotiations for purchase. Mr. Eitel advised this is not a foreclosed
property and the dollar amount exceeds the limits directed by the Council.
The Council indicated its support to move in a direction to negotiate purchase of the property due
to its strategic location; however, the Council did not support purchase at the asking price. It
was pointed out that the house was fire damaged so the property owner may have received an
insurance payment. Mr. Eitel stated his understanding it was not a major fire and the structure
can be repaired.
Mr. Boganey clarified staff is not proposing a purchase price. If the Council supports
proceeding, staff will negotiate in a manner to get the best price possible. The final decision
whether to purchase the property will be with the EDA.
The Council acknowledged the purchase of this property was within the long-range plan to
remove single-family residences from Brooklyn Boulevard.
Mayor Willson indicated he would need to know what the property owner received as an
insurance payment and if that is not disclosed he may not support its purchase.
The majority consensus of the City Council/EDA was to direct staff to proceed with the
negotiation for acquisition of 6031 Brooklyn Boulevard as part of the reimaging of the Brooklyn
Boulevard corridor.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust