HomeMy WebLinkAbout2015 06-08 EDAPEDA MEETING
City of Brooklyn Center
June 8, 2015 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. May 26, 2015 - Regular Session
4.Commission Consideration Items
a. Resolution Authorizing Execution of Tax Increment Pledge Agreement
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
MAY 26, 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 7:53 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, City Attorney Charlie LeFevere, and Carla Wirth,
TimeSaver Off Site Secretarial, Inc.
3.APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Myszkowski moved and Commissioner Ryan seconded to approve the Agenda
and Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. March 23, 2015 - Regular Session
Motion passed unanimously.
4.COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2015-07 CALLING FOR A PUBLIC HEARING
REGARDING THE SALE OF LAND LOCATED AT 5905 CAMDEN AVENUE
NORTH
Director of Business and Development Gary Eitel introduced the item, discussed the EDA's
acquisition of this blighted/foreclosed property through the Remove & Rebuild Program, the
successful infill development of single family homes on 5 lots sold by the EDA in 2014, the
proposed plans by Novak & Fleck to construct a 5 bedroom, 2 bath split entry home with a two
car attached garage on this lot, and stated that the purpose of the proposed resolution is to set a
public hearing for June 22, 2015, regarding the sale of land located at 5905 Camden Avenue
North.
05/26/15 -1- DRAFT
Commissioner Graves moved and Commissioner Myszkowski seconded to adopt
RESOLUTION NO. 2015-07 Calling for a Public Hearing Regarding the Sale of Land Located
at 5905 Camden Avenue North.
Motion passed unanimously
4b. RESOLUTION NO. 2015-08 APPROVING THE LEASE TERMIT/ATION
AGREEMENT (BROOKDALE SQUARE)
Mr. Eitel introduced the item and discussed the history of the EDA' s acquisition of Brookdale
Square property, the significance of this site in the planning and future redevelopment of the
Opportunity Site, and the terms of the leases that were in place when the EDA acquired the
property on December 23, 2013.
Mr. Eitel noted that at the present time, there are two active leases:
- Pep Boys, a 23,000 sq.ft. anchor tenant within the Brookdale Square strip center has 3
years remaining on their 20 year lease (1998-2018) and has four 5 year renewal options.
- Ocean Buffet, an 8,100 sq.ft. outbuilding, originally T.Wrights Restaurant has a 10 year
lease through October, 2012 with one 5 year renewal option.
The EDA was informed that staff had initially been contacted by Pep Boys to discuss a reduction
in lease payments and that after discussions on the City's vision for the redevelopment of the
Opportunity Site; Pep Boys proceeded with the drafting of a termination of lease agreement,
effective June 30, 2015.
At this time, Pep Boys has closed this store and removed all of their business signage.
The EDA acknowledged that the request by Pep Boys for an early termination of their lease will
benefit the City's planning for the redevelopment of this site, result in demolition savings to the
EDA by not having to work around an existing business and avoids the potential of future
relocation costs.
There was further discussion on the following:
- The Ocean Buffet lease was structured by the former owner to provide for a lower rent
rate for the first 5 years with annual increases over the next five years (2016-2021) to
achieve a market lease rate.
- Achieving a market rental rate will enable future considerations of either relocating this
restaurant within the new development or possibly within Shingle Creek Crossing
Development.
- Ocean Buffet has recently expressed an interest in purchasing the property.
- The potential to expand the previous finding of blighted building conditions, which
provides the EDA with the opportunity to establish a new tax increment district to
facilitate future redevelopment and infrastructure improvements.
- The demolition schedule of the buildings within Brookdale Square.
- The potential of promoting and providing rental opportunities for smaller start up
business to locate in Brooklyn Center.
05/26/15 -2- DRAFT
Mr. Eitel commented on the challenges faced by startup and small businesses, noting that the
City does participate in the Open to Business Program which focuses on assisting business
owners and entrepreneurs in developing business plans and business strategies. Additionally, as
part of the Council's strategic planning for the completion of Phase II Shingle Creek Crossing,
the City has Maxfield Research preparing a market analysis to determine the best markets
available to sustain and complete the development. Also, the consultant has be requested to
include options that the developer may use to assist in small business to locate within the project
5. ADJOURNMENT
Commissioner Lawrence-Anderson moved and Commissioner Graves seconded adjournment of
the Economic Development Authority meeting at 8:19 p.m.
Motion passed unanimously.
05/26/15 -3- DRAFT
EPA Agenda Item No. 4a
10 i a o ;ii isi i
DATE: June 8, 2015
TO: Curt Boganey, City Manager
FROM: Nathan Reinhardt, Finance Director
SUBJECT: Resolution Authorizing Execution of Tax Increment Pledge Agreement
Recommendation:
It is recommended that the City Council consider approval of the attached resolution authorizing
execution of tax increment pledge agreement.
Background:
On June 8, 2015 the City Council is considering adoption of a resolution providing for the sale of
$6,830,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2015B. If adopted the
resolution refunds the City's Taxable General Obligation Tax Increment Bonds, Series 2004D
which provided funds to finance certain public redevelopment costs within the Tax Increment
Financing District No. 3.
Budget Issues:
The resolution allows the City and the EDA to enter into a tax increment pledge agreement
pursuant to which the Tax Increments derived from the TIF District will be pledged to the
Bonds.
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
TAX INCREMENT PLEDGE AGREEMENT
THIS AGREEMENT, entered into as of the 9th day of July, 2015, by and
between the City of Brooklyn Center, a Minnesota municipal corporation, (the "City") and the
Brooklyn Center Economic Development Authority, a public body corporate and politic created
and existing under the provisions of Minnesota Statutes, Sections 469.090 to 469.1082, (the
"EDA"), witnesseth that:
A.WHEREAS, the EDA has heretofore established its Tax Increment
Financing District No. 3 (the "TIF District") within its Housing Development and
Redevelopment Project No. 1; and
B.WHEREAS, the City Council of the City has adopted a resolution (the
"Bond Resolution") awarding the sale of the City's Taxable General Obligation Tax Increment
Refunding Bonds, Series 2015B (the "Bonds") to refund the City's Taxable General Obligation
Tax Increment Bonds, Series 2004D which provided funds to finance the acquisition, demolition,
clearance and site preparation in target redevelopment areas within the EDA' s TIP District (the
"Project"); and
C.WHEREAS, the Project benefited the EDA and were made by the City at
the request of the EDA; and
D.WHEREAS, it is necessary and desirable that the City and the EDA enter
into a tax increment pledge agreement pursuant to which a portion of the Tax Increments will be
pledged to the Bonds.
NOW, THEREFORE, the City and the EDA, each in consideration of the mutual
covenants and agreements herein contained, covenant and agree as follows:
1.Pledge of Tax Increments: Coverage Test. The EDA pledges to the
payment of the Bonds, Tax Increments in an amount equal to 105% of the debt service on the
Bonds.
2.Remittance: Segregation: Reservation of Rights. All pledged tax
increments shall be remitted directly to the City and the City, acting as agent of the EDA, shall
segregate all tax increments so received in a special account on its official books and records.
The EDA reserves the right to alter the pledge of tax increments as set forth in the Resolution.
3. Filing Computation and Collection. An executed copy of this Agreement
shall be filed with the County Auditor of Hennepin County and shall constitute the request and
authorization of the EDA and the City to the County Auditor and Treasurer to compute and
collect the Tax Increments in accordance with the provisions of this Agreement and Minnesota
Statutes, Section 469.177 and to remit the same to the EDA.
IN WITNESS WHEREOF, the City and the EDA have caused this Agreement to
be duly executed on their behalf, and such signatures and seal to be attested, as of the day and
year first above written.
CITY OF BROOKLYN CENTER, MINNESOTA
By
Mayor
By
Manager
2
4614441 JSB BR291-356
BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY
By
President
By
Secretary
461444v1 JSB BR291-356
EXTRACT OF MINUTES OF A MEETING OF THE BOARD OF
COMMISSIONERS OF THE BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY
HELD: June 8, 2015
Pursuant to due call and notice thereof, a meeting of the Board of
Commissioners of the Brooklyn Center Economic Development Authority was duly held at the
City Hall in said City on the 8th day of June, 2015, at ____ o'clock —.M.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its
adoption:
RESOLUTION AUTHORIZING EXECUTION
OF TAX INCREMENT PLEDGE AGREEMENT
A.WHEREAS, the Brooklyn Center Economic Development Authority,
Minnesota ("EDA") has heretofore established its Tax Increment Financing District No. 3 (the
"TIF District") within its Housing Development and Redevelopment Project No. 1; and
B.WHEREAS, the City Council of the City of Brooklyn Center, Minnesota
(the "City") has adopted a resolution awarding the sale of the City's Taxable General Obligation
Tax Increment Bonds, Series 2015B (the "Bonds") to refund the City's Taxable General
Obligation Tax Increment Bonds, Series 2004D which provided funds to finance certain public
redevelopment costs within the TIF District (the "Project").
C. WHEREAS, it is necessary and desirable that the City and the EDA enter
into a tax increment pledge agreement pursuant to which the Tax Increments derived from the
TIF District will be pledged to the Bonds.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Brooklyn Center Economic Development Authority, as follows:
1. Authorization to Execute. The Tax Increment Pledge Agreement, a form
of which agreement is now on file in the office of the EDA, is hereby approved in substantially
the form submitted to the EDA. The President and Secretary are authorized and directed to
execute the same on behalf of the EDA.
4614800 JSB BR291-356
2. Filing. The Secretary is directed to file a fully executed copy of the Tax
Increment Pledge Agreement with the County Auditor of Hennepin County pursuant to
Minnesota Statutes, Section 469.178, Subdivision 2.
The motion for the adoption of the foregoing resolution was duly seconded by
member and, after full discussion thereof and upon a 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.
2
461480v1 JSB BR291-356
STATE OF MINNESOTA
COUNTY OF HENNEPIN
BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY
I, the undersigned, being the duly qualified and acting Secretary of the Brooklyn
Center Economic Development Authority, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes of a meeting of the Board of
Commissioners of said EDA held on the date indicated therein with the original thereof on file in
my office, and the same is a full, true and complete transcript therefrom insofar as the same
relates to a resolution authorizing execution of a Tax Increment Pledge Agreement.
WITNESS my hand as Secretary this day of , 2015.
Secretary
3
461480v1 JSB BR291-356