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HomeMy WebLinkAbout2015 02-23 EDAM Regular Session 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 FEBRUARY 23, 2015 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 7:35 p.m. 2. ROLL CALL President Tim Willson and Commissioners April Graves, Lin Myszkowski, and Dan Ryan were present. Commissioner Kris Lawrence-Anderson was absent and excused. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel,Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Troy Gilchrist and Brittney Berndt, TimeSaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Myszkowski seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES I February 9, 2015 —Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2015-03 APPROVING A THIRD AMENDMENT TO DEVELOPMENT AGREEMENT, A SECOND AMENDMENT TO PURCHASE AGREEMENT, AND RELATED DOCUMENTS (SHINGLE CREEK CROSSING PROJECT) Executive Director Curt Boganey introduced the item and referred to Director of Business and Development Gary Eitel to provide the staff report. Mr. Eitel provided a PowerPoint Presentation which retraced the history of the redevelopment of the former Brookdale Mall into Shingle Creek Crossing Project; reviewed the major features of the initial 2011 Development 02/23/15 -1- Agreement and the changes approved with the 2012 First Amendment and the 2014 Second Amendment; and outlined the major changes being considered by the Third Amendment: 1. To redefine the Food Court Work to mean the demolition of the Food Court Building, the construction of buildings E1, E2, E3, E4, E5, Nl, N2, and N3 (buildings 1-8) and construction of food court parking and streetscaping. 2. To extend the five-year $1 illion Forgivable Loan project completion date from June 28, 2016,to December 31, 2018. 3. To accept the status of the development and approve a partial forgiveness of the $1 million Forgivable Loan in the amount of$780,000 (78%). 4. To adjust the terms of the $1 million Forgivable Loan to reflect an adjusted balance of$220,000 and the additional development of 52,280 sq. ft. to achieve total forgiveness. 5. To allow the developer to pledge the $2.3 million TIF PAYG Note as collateral toward the new mortgage. 6. Remove the potential suspension or termination of the TIF Note as a remedy in the event of Default by the Developer. Additionally, the developer is requesting a Second Amendment to the Purchase Agreement (Shingle Creek Crossing Project) which would allow an extension of the closing date for their acquisition of the Land(EDA parcel) from June 30, 2017,to no later than December 31, 2018. Mr. Eitel indicated that the changes are being requested at this time to enable the developer to refinance the Shingle Creek Crossing Project from a commercial construction loan, which was reported to have an annual interest rate of 15%, to a commercial mortgage that has an interest rate of 8%. The EDA thanked Mr. Eitel for his time and energy in this current project, mentioning that when developers come to the City, the redevelopment work that Mr. Eitel has done is mentioned in many conversations. Commissioner Ryan inquired on the current leasing status of the existing buildings and the motivation of the developer to request an extension to the deadlines at this time. Mr. Eitel indicated that the request relates to the terms by the new mortgage company to accept the assignment of the Development Agreement and PAYG Note as collateral to the Mortgage. Mr. Eitel also commented on the status of the development of the remaining ten (10) building pad sites that are illustrated on the PUD plans as approximately 109,000 sq. ft.; the status of the Tax Increment Financing Plan that provides the funding for the $2.3 million PAYG Note, the repayment of the $2.4 million Inter-Fund Loan to TIF 2; and the projections that additional funds will be generated for other EDA-approved In-District and Out-of-District expenditures. Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2015-03 Approving a Third Amendment to Development Agreement, a Second Amendment to Purchase Agreement, and Related Documents(Shingle Creek Crossing Project). 02/23/15 -2- Motion passed unanimously. 5. ADJOURNMENT Commissioner Myszkowski moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:17 p.m. Motion passed unanimously. 02/23/15 -3- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed Secretary of the Economic Development Authority (EDA) of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Regular Session of the Economic Development Authority (EDA) of the City of Brooklyn Center held on February 23, 2015. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the Economic Development Authority (EDA) adopted said minutes at its March 9, 2015, Regular Session. cretary President 02/23/15 -4-