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HomeMy WebLinkAbout2015 05-26 EDAPEPA MEETING City of Brooklyn Center May 26, 2015 (Tuesday) 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. March 23, 2015 —Regular Session 4.Commission Consideration Items a.Resolution Calling for a Public Hearing Regarding the Sale of Land Located at 5905 Camden Avenue North Requested Commission Action: —Motion to adopt resolution. b.Resolution Approving the Lease Termination Agreement (Brookdale Square) 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 MARCH 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 8:11 p.m. 2; ROLL CALL President Tim Willson and Commissioners April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, Recreation and Services Jim Glasoe, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. Also present were Youth in Government Day participants Mayor Feyisayo Ayobamidele, Park Center High School; and Councilmembers Andrew Osagiede, Brooklyn Center High School; Fiona Greathouse, Osseo High School; Sade Berrouet, Northview Junior High School; and Naitu Haskins, Northview Junior High School. 3.APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Graves moved and Commissioner Myszkowski seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. March 9, 2015 —Regular Session Motion passed unanimously. 4.COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2015-06 APPROVING A LETTER OF INTENT TO • PURCHASE WITH SCA PROPERTIES, LLC REGARDING 6121 BROOKLYN BOULEVARD, 6107 BROOKLYN BOULEVARD, AND 6101 BROOKLYN BOULEVARD 03/23/15 -1- DRAFT Director of Business and Development Gary Eitel introduced the item, discussed the history, and stated the purpose of the proposed resolution to sell property to SCA Properties, LLC for the development of senior housing. He displayed slides depicting the subject properties and advised of the Letter of Intent terms. Mr. Eitel introduced Andy Aulde of SCA Properties, LLC. Commissioner Ryan stated he is pleased with this concept and architectural drawing, which will create an outstanding project and great asset on Brooklyn Boulevard. He asked about the availability of housing credits to close the funding gap. Mr. Eitel explained the criteria used by the Metropolitan Council for consideration of concentrated areas of poverty and Qualified Census Tract (QCT) housing projects. He indicated the question staff will pursue is whether there can be similar consideration for this Brooklyn Center project to address the funding gap. He stated staff is committed to finding a way to bridge the $2 million gap without the loss of project enhancements. Mr. Eitel indicated the EDA is in a great position to be a strong partner in the redevelopment of this corridor. Commissioner Graves asked about the cost of staying at this property and if actions by the EDA will increase that cost. Mr. Eitel explained that if the project moves forward, nothing the City does will affect this low-income affordable housing project that will operate under those rules. President Willson stated his goal is to retire in Brooklyn Center so he is excited to see this type of project come to Brooklyn Center. In addition, the City Council has received comments from its residents about the need for such a senior housing option. Commissioner Myszkowski moved and Commissioner Ryan seconded to adopt RESOLUTION NO. 2015-06 Approving a Letter of Intent to Purchase with SCA Properties, LLC Regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard, and 6101 Brooklyn Boulevard. Motion passed unanimously. 5. ADJOURNMENT Commissioner Myszkowski moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:30 p.m. Motion passed unanimously. 03/23/15 -2- DRAFT EDA Agenda Item No. 4a EPA ITEM MEMORANDUM DATE: May 26, 2015 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Calling for a Public Hearing Regarding Sale of Land Located at 5905 Camden Avenue North. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Calling for a Public Hearing Regarding Sale of Land Located at 5905 Camden Avenue North. Background: On June 10, 2013, the EDA adopted Resolution No. 2013-10, A Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5905 Camden Avenue North). 5905 Camden Avenue North was a foreclosed home in a blighted condition that the City's housing consultant, Greater Metropolitan Housing Corporation (GMHC), had received through a donation from the bank. The vacant lot was conveyed to the EDA for the costs GMHC had incurred for its acquisition, demolition, holding costs, and administrative consultant fees. The total purchase price was approximately $28,000. The Remove and Rebuild Program is funded through the Housing Fund of Tax Increment District 43. The resale of property acquired with these funds does have to meet the following affordable income qualifications • a family of one or two cannot exceed the average household median income for the Metropolitan Area (2014 - $83,900) and • a family of 3 or more cannot exceed 115% of the Metropolitan Average Household Income (2014 - $95,300) Proposed Sales of 5905 Camden Avenue North: The property is a corner lot with 83 feet of frontage on Camden Avenue North and 209 feet of frontage on 59th Ave. N. Attached is an aerial photograph, identifying the 2014 assessed valuations of the adjacent properties ($101,100 to the north, $116.700 to the south, and $126,400 to the east). Novak-Fleck, Inc., an experienced residential builder with infill development, acquired 4 lots form the EDA last year (5400 Bryant, 5800 Bryant, 5331 Morgan, and 5338 Logan) and has built homes in the $200,000 price range on each of the lots. Mission: Eizsuiing (117 attractive, clean, safe, inclusive community that enhances the quality of life for all people an(lpI'eserves the public trust I M V I kA Uh'A I M"A (I) 1I 1IWA1 The proposed purchase price for this lot is $25,000 and does not involve a real estate fee by the EDA. The attached construction plans are similar to the home recently built at 5400 Bryant Avenue North and provides for a 5 bedroom home (split entry style) having a total square footage of 2,172 sq.ft. with a 2 car attached garage. 1058 sq.ft. on the main floor (3 bedrooms, bath, living room, dining room, kitchen, with options for a deck off of the dining area) 108 sq.ft. foyer with stairway to lower level e 1008 sq.fi. on the lower lookout level (identified as future 2 bedrooms, bath, family room and mechanical room) The City Attorney has prepared the attached resolution which authorizes the setting of a public hearing for the June 22, 2015 EDA Meeting to consider the sale of this property. Budget Issues: The proceeds from this land sale are considered Tax Increment Revenues and will be placed •back into the TIF 3 Housing Fund. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive cointnhinhty 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 CALLING FOR A PUBLIC HEARING REGARDING SALE OF LAND LOCATED AT 5905 CAMDEN AVENUE NORTH BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA"), as follows: Section 1. Public Hearing. This Board shall meet on June 22, 2015, at approximately 7:00 P.M., to hold a public hearing on the proposal of the EDA on the sale of land located in the City at 5905 Camden Avenue North, pursuant to Minnesota Statutes, Section 469.105. Section 2. Notice of Public Hearing, Filing of Plans. EDA and consultants are directed and authorized to prepare the necessary documents and the EDA Secretary is authorized and directed to cause notice of the hearing in substantially the form attached as Exhibit A hereto, to be published at least once in the official newspaper of the City not less than 10, nor more than 20, days prior to June 22, 2015. May 26, 2015 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. NOTICE OF PUBLIC HEARING REGARDING LAND SALE NOTICE IS HEREBY GIVEN that the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA") will meet at City Hall at 6301 Shingle Creek Pkwy, Brooklyn Center, Minnesota (the "City") at or after 7:00 p.m. on Monday, June 22, 2015 to conduct a public hearing on the proposed sale of certain real property ("Property") located in the City to Novak-Fleck, Inc. The Property is located in the City at 5905 Camden Avenue North and legally described as: Lot 8, Block 2, Camden Acres, according to the recorded plat thereof, Hennepin County, Minnesota. [Abstract] The EDA will meet at the public hearing to determine if the sale is advisable. A copy of the terms and conditions of the proposed sale of the Property will be on file and available for inspection at City Hall during regular business hours. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. BY ORDER OF THE BOARD OF COMMISSIONERS Publish: June 3, 2015 PW _- __- _ tw 111 Parcel 01-118-21-21-0009 A-T-B: Abstract Map Scale: 1" 50 ft. N Print Date: 5/19/2015 Owner MarketEcon Dev Auth Brooklyn Cntr T ( rName: Total: 2. L A es Parcel 5905 Camden Ave N Tax $0.00 Address: Brooklyn Center, MN 55430 Total: (Payable: 2015) 1 Property SaleVacant Land-Residential $124,500 Price This map is a compilation of data from variousType. sources and is furnished "AS IS" with no Sale representation or warranty expressed orHome- Non-Homestead 11/2003 implied, including fitness of any particularstead: on Date: purpose, merchantability, or the accuracy and completeness of the information shown. Parcel 0.4 acres Sale Area: 17,556sqft Code: COPYRIGHT © HENNEPIN COUNTY 2015 , c) 7 .2 ] V) 0 0 C J) TT I?W I II '-iiJ4b I 4L Aa *1C 11U p 4C17i- 4C L CL l LdJV **W r 1 XL WTVeri °- 0 11lu c _ "0"4, 1wII Uvm - i $id bbl1ciLCLL -. 4tI J1LI_ ? iJr'jI : •j: : H EDA Agenda Item No. 4b EPA ITEM MEMORANDUM DATE: May 26, 2015 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution approving the Lease Termination Agreement (Brookdale Square) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution approving the Lease Termination Agreement (Brookdale Square).with The Pep Boys Manny, Moe, & Jack of California. Background: On November 12, 2013, the EDA adopted Resolution No. 2013-17, which resolution authorized the acquisition of Lot 1, Block 1, Brookdale Square 2nd Addition to facilitate redevelopment opportunities within the Opportunity Site of the former Brookdale Square Shopping Center. On December 23, 2013, the closing with Brixmor Properties occurred and the EDA became the owner of this 23.2 acre commercial site containing the 185,885 sq.ft. Brookdale Square Shopping Center, which included the following leases: • The Pep Boys Manny, Moe,& Jack of California: a 23,000 sq. ft. anchor tenant with a 20 year lease (1998 —2018) with four, 5 year options remaining; • a vacant retail space of 1,207 sq. ft. formerly occupied by Weight Watchers; • a vacant junior box space of 3 6,3 91 sq. ft., formerly occupied by Circuit City; • a 25,782 sq. ft. retail space and former government service center leased to Great Multitude and sub-leased to K-Bids, which operated on a month to month lease; • a 9,365 sq.ft. tenant space and a 2,916 sq.ft. tenant space, leased to Market Supply with an expiration date of June-July, 2014; • a vacant retail space of 2,341 sq. ft.; • a vacant retail space of 2,559 sq. ft., temporarily used by the security guards; and • a 30,395 sq. ft. retail space leased to Blue Star Production for storage, with a lease ending September 30, 2014. Also, three outer parcels occupied by the following buildings: • 5801 John Martin Drive, former Miracle Empowerment Center (aka. Cinema 1,11, III), which had a lease through January 31, 2015; • 5800 Shingle Creek Parkway, Ocean Buffet Restaurant (former T.Wrights restaurant), which has a 10 year lease through October, 2021 with one 5 year renewal option; and • 5810 Shingle Creek Parkway, former Brookdale 8 Movie Theater (vacant when acquired). 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 At the present time, all leases within the Brookdale Square Center have expired, with the exception of Pep Boys. The City has completed the asbestos and environmental analysis of the building and is working on the bid specification for the demolition of this building up to the exterior of the Pep Boy's easterly wall, with a bid opening scheduled for late August. Additionally, Metro Excavating has a contract for the demolition of the Brookdale-8 Movie Theater, which is scheduled to be completed in late June, along with a bid opening for the demolition of the former Miracle Empowerment Center, scheduled for May 28th On March 23, 2015, the City was contacted by an agent for Pep Boys to inquire about a reduction in their lease rate due to the poor retail activity at this location. The discussion resulted in the drafting of a termination of lease agreement, effective June 30, 2015. The attached agreement has been reviewed by the City Attorney. Staff has made our consultants aware of this termination agreement and potential to scheduling of the asbestos and environmental review of this space in early July. Also, termination of this lease opens new options for design concepts for the western portion of the site and phasing of the project. Pep Boys has removed all of their business signage and is in process of vacating the building. Budget Issues: The Pep Boys lease payment of $7.39 a sq. ft. ($169,970 annual) provided the funds to cover operating expenses, including real estate taxes, security, and site maintenance. Staff believes there will be savings in the demolition bids if the entire building can be demolished without provisions of protecting an occupied portion of the building. Additionally, there will be significant savings in the temporary tax exempt status of the 22+ acres of the former Brookdale Square Center. Also, the voluntary termination of this lease will eliminate the potential future negotiations and costs of relocating a 23,000 sq. ft. retail tenant with the future redevelopment plans for the Opportunity Site. Strategic Priorities: • Targeted 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 APPROVING THE LEASE TERMINATION AGREEMENT (BROOKDALE SQUARE) WHEREAS, the Brooklyn Center Economic Development Authority acquired Lot 1, Block 1, Brookdale Square 2' Addition, a 23.2 acre commercially zoned lot, known as Brookdale Square, for the specific purpose of facilitating the redevelopment of the City's Opportunity Site, as identified in the adopted comprehensive plan for the City of Brooklyn Center; and WHEREAS, the Pep Boys Manny, Moe & Jack of California, a California corporation, are a tenant within the subject property, the Brookdale Square, located at 5900 Shingle Creek Parkway; and WHEREAS, the Pep Boys Manny, Moe, & Jack of California have requested to amend the lease agreement so that the term of the lease shall finally terminate and end, with no remaining optional terms, at midnight on June 30, 2015. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota, as follows: 1.The Lease Termination Agreement with The Pep Boys Manny, Moe, & Jack of California for the Subject Property is hereby approved.2.The President and Executive Director of the EDA are authorized and directed to execute the Lease Termination Agreement and the Executive Director is authorized and directed to take all such further steps as are necessary to effect the terms thereof. May 26, 2015 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. LEASE TERMINATION AGREEMENT This Lease Termination Agreement is made and entered into on this day of 2015, by and between Economic Development Authority of Brooklyn Center, Minnesota, a public corporation under the laws of Minnesota ("Landlord") and The Pep Boys Manny, Moe & Jack of California, a California corporation ("Tenant"). In consideration of the payment of Ten Dollars ($10.00) receipt of which is hereby acknowledged, and intending to be legally bound hereby and to bind their respective successors and assigns, Landlord and Tenant hereby covenant and agree as follows. 1.Lease. That certain Lease Agreement dated January 9, 1998 between Landlord's predecessor-in-interest (Bradley Operating Limited Partnership) and Tenant (as amended and assigned to date, the "Lease") with respect to the premises located at 5900 Shingle Creek Parkway, Brooklyn Center, Minnesota, and which is more particularly described in the Lease, ("Premises") is hereby incorporated by reference. 2.Termination. The Lease is hereby amended so that the Term of the Lease shall finally terminate and end, with no remaining optional terms, at midnight on June 30th 2015 ("Termination Date"), instead of the Lease Term expiration date now provided in the Lease, with the same force and effect as if the Termination Date were the day on which the Term of the Lease would have otherwise expired pursuant to the Lease. Tenant shall surrender the Premises on the Termination Date in "AS-IS" condition and shall not be obligated to make any repairs or undertake any work with respect to the Premises, except that Tenant shall be required to remove its personal property (except fixtures), waste oil tanks, and any waste materials from the Premises. All charges due under the Lease, including, but not limited to, CAM and real estate taxes, shall be pro-rated as of the Termination Date. 3.No Other Amendment. Except as specified above, no other provision of the Lease is amended hereby, and none of Landlord's or Tenant's agreements or obligations under the Lease shall be affected by the early expiration of the Term. 4.Ratification. As hereby amended, the Lease is ratified and confirmed by Landlord and Tenant. 5.Counterparts. This instrument may be executed in separate counterparts by the parties. 6.Whole Agreement. The whole agreement of the parties with respect to the early termination of the Lease is herein written and the parties are not bound by any agreement, understanding, representation, warranty or condition otherwise than is expressly set forth herein. No alteration, amendment, supplement, modification or waiver of any of the terms or provisions hereof shall be valid or enforceable unless the same be in writing and signed by the party supplement, modification and waiver as sought. 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