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HomeMy WebLinkAbout2015 10-26 EDAP EDA MEETING City of Brooklyn Center October 26, 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. October 12, 2015 —Regular Session b. Resolution Authorizing the Dedication of Easements on Economic Development Authority Property at 6301 Brooklyn Boulevard and 6245 Brooklyn Boulevard 4. Commission Consideration Items a. Resolution Approving a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. I and Establishing Tax Increment Financing District No. 6 Therein and Approving a Tax Increment Financing Plan Therefor(TIF District No. 6— Affordable Senior Housing) 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 OCTOBER 12, 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 8:01 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, Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Denise Bosch, TimeSaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Graves moved and Commissioner Ryan seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. September 28, 2015—Regular Session Motion passed unanimously. 4. PUBLIC HEARINGS 4a. RESOLUTION NO. 2015-21 APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT AND CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 5649 BROOKLYN BOULEVARD On September 14, 2015, the EDA called for a Public Hearing to be held October 12, 2015; the notice was published in the official newspaper on October 1, 2015. Director of Business and Development Gary Eitel showed a map of the area; provided background on the item including sale information and requirements, and provided plans for the home. 10/12/15 -1- DRAFT President Willson commented that this has been an excellent program for the City. The City is seeing interest from those who wish to live here including people with young families. He commended Mr. Eitel and Mr. Boganey for all the work they do and thinks this is healthy and good for the City. Commissioner Ryan moved and Commissioner Graves seconded to open the Public Hearing. Motion passed unanimously No one wished to address the EDA. Commissioner Lawrence-Anderson moved and Commissioner Ryan seconded to close the Public Hearing. Motion passed unanimously. Commissioner Graves moved and Commissioner Myszkowski seconded to adopt RESOLUTION NO. 2015-21 Approving Purchase and Redevelopment Agreement and Conveyance of Certain Property Located at 5649 Brooklyn Boulevard. Motionpassed unanimously. 5. COMMISSION CONSIDERATION ITEMS. 5a. RESOLUTION NO.2015-22 APPROVING AGREEMENTS RELATED TO THE DEVELOPMENT OF THE OPPORTUNITY SITE Mr. Eitel provided a map of the area; background regarding the site; information regarding the Preliminary Development Agreement and strategy for building the development; the concept plan; funding responsibilities of the EDA; information regarding the contract for private redevelopment; information on consulting services to complete the preliminary design and feasibility task; project tasks and costs; and identified the commercial service/civic area. He stated that the project will require an Environmental Assessment Worksheet to be completed. President Willson wondered if the commercial service/civic area would lend itself to an opportunity for smaller businesses and make it unique. Commissioner Ryan stated that these projects are complicated. His concern was an e-mail related to the Environmental Assessment Worksheet and any delay it may cause. He asked Mr. Eitel for his insight. President Willson stated that the City would want to take care of environmental issues even if there is a delay and if there is some political issue with the Met Council, it would need to be taken care of. 10/12/15 -2- DRAFT Mr. Eitel stated that filling out the worksheet should be a simple process but it will require compiling information. The worksheet is routed to 14 state agencies and it is a process to look at the scope of the project. He stated he doesn't foresee a problem with complying with the worksheet. Commissioner Ryan commented that he supports the concept and the project. He stated that 600 units will generate a demand for the retail and amenities at Shingle Creek Crossing and it is a great addition to the community and will help to diversify the housing stock. Commissioner Lawrence-Anderson commented that she liked the phased development of the apartments. She asked about the exterior structure. Mr. Eitel replied that that information is not available yet and it would have to be agreed upon. Mr. Boganey reinforced Mr. Eitel's statement that the EAW should be a routine effort and stated that the most significant aspect of it is the public comment portion. It is an opportunity for anyone in the public to make comments on how this particular development will impact the environment. He does not believe there should be any impact that will result in a delay. He commended Mr. Eitel because this is a relatively novel approach but it is most appropriate and is an illustration of Mr. Eitel's vision and unwillingness to accept failure and to be creative to find a solution that should work. Ile recognized Mr. Eitel's out-of-the-box thinking while always wanting to achieve the best results. Commissioner Myszkowski moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2015-22 Approving Agreements Related to the Development of the Opportunity Site. 6. ADJOURNMENT Commissioner Ryan moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 8:45 p.m. Motion passed unanimously. 10/12/15 -3- DRAFT EDA Agenda Item No. 3b EDA ITEM MEMORANDUM DATE: October 20, 2015 TO: Curt Boganey, City Manager FROM: Mike Albers, Project Engineer THROUGH: Steve Lillehaug, Director of Public Works/City Engineer S SUBJECT: Resolution Authorizingthe Dedication of Easements on Economic Development P Authority Property at 6301 Brooklyn Boulevard and 6245 Brooklyn Boulevard Recommendation: It is recommended that the Economic Development Authority (EDA) consider approval of the resolution authorizing the dedication of easements on EDA property at 6301 Brooklyn Boulevard and 6245 Brooklyn Boulevard pertaining to the 63rd Avenue Street and Utility Improvements. Background: On May 11, 2015, the City Council awarded the contract for the 63rd Avenue Street and Utility Improvements and determined the necessity for and authorized the acquisition of certain property easements for the 63rd Avenue project. As part of this project, existing sidewalk and proposed improvements such as sidewalks, trails, utilities and other streetscape elements have been identified that fall outside of existing public easement areas. The attached maps show the extent of the easements needed for the proposed improvements within the EDA-owned parcels located along 63rd Avenue west of Brooklyn Boulevard. The proposed dedication would provide for the needed acquisition of approximately 10,853 square-feet of easement for public roadway and utility purposes on the parcel located in the northwest quadrant of 63rd Avenue and Brooklyn Boulevard (6301 Brooklyn Blvd) and acquisition of approximately 6,889 square-feet of easement for public roadway and utility purposes on the parcels located in the southwest quadrant of 63rd Avenue and Brooklyn Boulevard (6245 Brooklyn Blvd). i The City Attorney has reviewed all easement documents and concurs to the purpose and form of the easements. Budget Issues: Easement recording fees will be paid for out of the improvement project budget. Strategic Priorities: ® Key Infrastructure Investments ,!fission;Ensuring an attractive,clean,safe,inclusive community that enhances the guallFh offife fire all people and preserves the puhiic trust l Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE DEDICATION OF EASEMENTS ON ECONOMIC DEVELOPMENT AUTHORITY PROPERTY AT 6301 BROOKLYN BOULEVARD AND 6245 BROOKLYN BOULEVARD WHEREAS, existing sidewalk and construction of new sidewalk, trailway, utilities and streetscape improvements in the northwest quadrant of 63rd Avenue and Brooklyn Boulevard necessitates the acquisition of a perpetual easement for public roadway and utility purposes including roadway, storm sewer, sanitary sewer, water facilities, sidewalk, trail, decorative landscape features and other public facilities or improvements within 6301 Brooklyn Boulevard, Lot 5, Block 2, FAIR MEADOWS, Hennepin County, Minnesota; and WHEREAS, existing sidewalk and construction of new sidewalk, trailway, utilities and streetscape improvements in the northwest quadrant of 63rd Avenue and Brooklyn Boulevard necessitates the acquisition of a perpetual easement for public roadway and utility purposes including roadway, storm sewer, sanitary sewer, water facilities, sidewalk, trail, decorative landscape features and other public facilities or improvements within 6245 Brooklyn Boulevard, that part of Lot 21, AUDITOR'S SUBDIVISION NO. 25, and within Outlot 1, EWING LANE ADDITION, Hennepin County, Minnesota; and WHEREAS, the City Attorney has reviewed all easement documents for said easements, copies of which are attached hereto; and WHEREAS, the Economic Development Authority has agreed to dedicate said easements. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota, that the President is hereby authorized to execute the permanent easements within Lot 5, Block 2, FAIR MEADOWS; and within that part of Lot 21, AUDITOR'S SUBDIVISION NO. 25, and within Outlot 1, EWING LANE ADDITION in the name of the Economic Development Authority. October 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. (roadway and utility) EASEMENT This Easement is made as of , 2015, by the Economic Development Authority of Brooklyn Center, a public body corporate and politic organized under the laws of the State of Minnesota ("Grantor") in favor of the CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota municipal corporation (the "City"). RECITALS WHEREAS, Grantor is the fee owner of the real property described on Exhibit A, attached hereto. WHEREAS, Grantor desires to grant to the City certain easements over the Easement Area, described on Exhibit B and depicted on Exhibit C, each attached hereto (the "Easement Area"). on the terms and conditions contained herein. TERMS OF EASEMENTS 1. Grant of Easements. For good and valuable consideration, receipt of which is acknowledged by Grantor, Grantor grants and conveys to the City a perpetual non-exclusive easement over, under, across and through the Easement Area for public roadway and utility purposes, subject to the terms and conditions hereof. Scope of Easements. The perpetual roadway and utility easement granted herein includes the right of the City, its contractors, agents, assignees and employees to enter the premises at all reasonable times to locate, install, construct, reconstruct, operate, maintain, inspect, alter and repair any of the following facilities and amenities within the Easement Area: public roadway, storm sewer, sanitary sewer, water facilities, sidewalk, or other public facilities or improvements of any type that are not inconsistent with public right of way use. The easements granted herein include the right to cut, trim, or remove from the Easement Area any trees, shrubs, or other vegetation as in the City's judgment unreasonably interfere with the easement or improvements of the City. The easements granted herein also include the right to maintain an obstacle free clear area within the zone defined as within three (3)feet of each outside edge of a trail. 2. Maintenance. The City shall comply with applicable laws, regulations and ordinances affecting the Easements and the Easement Area. The City is responsible, at its sole cost, for maintaining, repairing and replacing the sidewalk, trail, streetscape and utility facilities and related appurtenances constructed within the easement areas. 3. Reservation by Grantor. Except for the easement rights expressly granted in this Easement, all rights in and to the Easement Area are hereby reserved to the Grantor, and Grantor may use the surface and subsurface of the Easement area for all uses and purposes that do not interfere with the rights and easements expressly granted in this Easement. 4. Environmental Matters. The City shall not be responsible for any costs, expenses, damages, demands, obligations, including penalties and reasonable attorney's fees, or losses resulting from any claims, actions, suites or proceedings based upon a release or threat of release of any hazardous substances, pollutants, or contaminants which may have existed on, or which relate to,the Easement Area or property prior to the date of this instrument. 5. Binding Effect. The terms and conditions of this instrument shall run with the land and be binding on Grantor, its successors and assigns. IN WITNESS WHEREOF, Grantor and the City have executed this Easement effective as of the date and year first above written. Grantor: Economic Development Authority of Brooklyn Center By: Its: By: Its: STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me on 2015, by and , the and of the Economic Development Authority of Brooklyn Center, a public body corporate and politic organized under the laws of the State of Minnesota, on behalf of the corporation, Grantor. Notary Public SIGNATURE PAGE TO EASEMENT(roadway and utility) CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota municipal corporation By: Name: Tim Willson Title: Mayor By: Name: Cornelius L. Boganey Title: City Manager STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me on , 2015, by Tim Willson, the Mayor, and by Cornelius L. Boganey, the City Manager, of the CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public SIGNATURE PAGE TO EASEMENT(roadway and utility) THIS INSTRUMENT DRAFTED BY: City of Brooklyn Center Public Works Department 6301 Shingle Creek Parkway Brooklyn Center,MN 55317 (763) 569-3340 it EXHIBIT A Description of Property Lot 5, Block 2, FAIR MEADOWS, Hennepin County,Minnesota. i i A-1 EXHIBIT B Legal Description of Easement Area A perpetual easement for roadway and utility purposes over,under, across and through the East 40.00 feet of Lot 5,Block 2,FAIR MEADOWS, according to the recorded plat thereof,EXCEPT that part of said Lot 5 lying southeasterly of a line run from a.point on the south line of said Lot 5 distant 25.00 feet westerly of the southeast comer of said Lot 5 to a point on the easterly line of said Lot 5 distant 25.00 feet northwesterly of said southeast comer. Together with a perpetual easement for roadway and utility purposes over, under, across and through that part of the South 25.00 feet of said Lot 5 lying westerly of the East 40.00 feet of said Lot 5. Together with a perpetual easement for roadway and utility purposes over, Linder, across and through that part of said Lot 5 lying westerly of the East 40.00 feet of said Lot 5, lying northerly of the South 25,00 feet of said Lot 5 and lying southeasterly of a line nin parallel with and distant 60.00 feet northwesterly of a line run fi-om a point on the south line of said Lot 5 distant 25.00 feet westerly of the southeast comer of said Lot 5 to a point on the easterly line of said Lot 5 distant 25,00 feet northwesterly of said southeast comer, I hereby certify that this plan,survey,or report was prepared by me or-under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Print-Name: r- U-5yE �T -2 Z' D-at—e '-� icense#—L&-4- 9 B-1 i EXHIBIT C Depiction of Easement Area (see attached Sketch Exhibit) C-1 FUTURE CURB aoal*r In taoY \ EXISTING - PROPOSED RIGHT OF WAY 1- EASEMENT 1` -� LEGEND PERMANENT EASEMENT 10853 SF � �` C\ PROPOSED EASEMENT NHANCER BUS STOP EXISTING O� N l RIGHT OF AY i TRAIL t 63RD AVENUE NO. I hereby certify that this plan, survey, or report 6301 BROOKLYN BOULEVARD BROOKLYN CENTER MN awcsnd that Iea by du or order my direct supervision MO w ' ' the ah°s o.thedStaY of Minnesota. EXHIBIT under EXHIBIT C Con.ulting Croup,Inc: Print 'Jam Cate L I Gansa # ✓L�-`7Sl CONSENT AND JOINDER BY MORTGAGEE The , holder of a mortgage on the property which is described as follows: Lot 5, Block 2, FAIR MEADOWS,Hennepin County,Minnesota. hereby consents to the Declaration of Easement dated , 2015, filed , 2015 in the office of the Hennepin County Registrar of Titles as Document No. Dated: By: Its: By: i Its: STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2015 by and the and of , on behalf of the bank. Notary Public NOTARY STAMP OR SEAL THIS INSTRUMENT DRAFTED BY: City of Brooklyn Center Public Works Department 6301 Shingle Creek Parkway Brooklyn Center,MN 55317 (763) 569-3340 1 (roadway and utility) EASEMENT This Easement is made as of 2015, by the Economic Development Authority of Brooklyn Center, a public body corporate and politic organized under the laws of the State of Minnesota ("Grantor") in favor of the CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota municipal corporation(the "City"). RECITALS WHEREAS, Grantor is the fee owner of the real property described on Exhibit A, attached hereto. WHEREAS, Grantor desires to grant to the City certain easements over the Easement Area, described on Exhibit B and depicted on Exhibit C, each attached hereto (the "Easement Area"). on the terms and conditions contained herein. TERMS OF EASEMENTS 1. Grant of Easements. For good and valuable consideration, receipt of which is acknowledged by Grantor, Grantor grants and conveys to the City a perpetual non-exclusive casement over, under, across and through the Easement Area for public roadway and utility purposes, subject to the terms and conditions hereof. Scope of Easements. The perpetual roadway and utility easement granted herein includes the right of the City, its contractors, agents, assignees and employees to enter the premises at all reasonable times to locate, install, construct, reconstruct, operate, maintain, inspect, alter and repair any of the following facilities and amenities within the Easement Area: public roadway, storm sewer, sanitary sewer, water facilities, sidewalk, or other public facilities or improvements of any type that are not inconsistent with public right of way use. The easements granted herein include the right to cut, trim, or remove from the Easement Area any trees, shrubs, or other vegetation as in the City's judgment unreasonably interfere with the easement or improvements of the City. The easements granted herein also include the right to maintain an obstacle free clear area within the zone defined as within three (3)feet of each outside edge of a trail. 2. Maintenance. The City shall comply with applicable laws, regulations and ordinances affecting the Easements and the Easement Area. The City is responsible, at its sole cost, for maintaining, repairing and replacing the sidewalk, trail, streetscape and utility facilities and related appurtenances constructed within the easement areas. 3. Reservation by Grantor. Except for the easement rights expressly granted in this Easement, all rights in and to the Easement Area are hereby reserved to the Grantor, and Grantor may use the surface and subsurface of the Easement area for all uses and purposes that do not interfere with the rights and easements expressly granted in this Easement. 4. Environmental Matters. The City shall not be responsible for any costs, expenses, damages, demands, obligations, including penalties and reasonable attorney's fees, or losses resulting from any claims, actions, suites or proceedings based upon a release or threat of release of any hazardous substances, pollutants, or contaminants which may have existed on, or which relate to,the Easement Area or property prior to the date of this instrument. 5. Binding Effect. The terms and conditions of this instrument shall run with the land and be binding on Grantor, its successors and assigns. IN WITNESS WHEREOF, Grantor and the City have executed this Easement.effective as of the date and year first above written. I Grantor: Economic Development Authority of Brooklyn Center By: Its: By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me on 2015, by and ,the and of the Economic Development Authority of Brooklyn Center, a public body corporate and politic organized under the laws of the State of Minnesota, on behalf of the corporation, Grantor. Notary Public SIGNATURE PAGE TO EASEMENT(roadway and utility) J CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota municipal corporation . By: Name: Tim Willson Title: Mayor By: Name: Cornelius L. Boganey Title: City Manager STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me on , 2015, by Tim Willson, the Mayor, and by Cornelius L. Boganey, the City Manager, of the CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public SIGNATURE PAGE TO EASEMENT(roadway and utility) THIS INSTRUMENT DRAFTED BY: City of Brooklyn Center Public Works Department 6301 Shingle Creek Parkway Brooklyn Center,MN 55317 (763) 569-3340 EXHIBIT A Description of Property Outlot 1,EWING LANE ADDITION,Hennepin County,Minnesota. Lot 21,AUDITIORS SUBDIVISION NUMBER 25,Hennepin County,Minnesota A-1 EXHIBIT B Leal Description of Easement Area A petVctual easement for roadway and utility purposes over,under,across and through the North 32.00 feet of Outlot 1,EWING LANE ADDITION,according to the recorded plat thereof Together with a perpetual easement for roadway and utility purposes over, under, across; and through that part of Lot 21,AUDITOR'S SUBDIVISION NO. 25, according to the recorded plat thereof, described as beginning at the northeast comer of Outlot 1, said EWING LANG ADDITION;thence southerly along the easterly line of said Outlot 1 to the south line ofthe North 32.00 feet of said Lot 21; thence easterly along said south line a distance of 98.07 feet; thence southeasterly deflecting to the right 54 degrees 44 minutes 25 seconds a distance of 48.47 feet to the intersection with the west line of the East 22.00 feet of said Lot 21;thence southeasterly along said west line a distance of 68.95 feet to the north line of the South 257.00 feet of said Lot 21; thence easterly along said north line to the east line of said Lot 21;thence northwesterly along said cast line a distance of 126.28 feet to a point on said east line distant 20.00 feet southeasterly of the northeast corner of said Lot 21; thence northwesterly to a point on the north line of said Lot 21 distant 20.00 feet westerly of said northeast corner;thence westerly along said north line a distance of 99.73 feet to the point of beginning: 1 I hereby certify that this plan, survey, or report was prepared by me or under my direct supervision and that I and a duly Licensed Land Surveyor under the laws of the State of Minnesota. Priv rune: r E�4 � E B-1 I i i EXHIBIT C Depiction of Easement Area (see attached Sketch Exhibit) C-1 63RD AVENUE NO, LLL 0 is 30 .—to to foot 1 � O WALK t l• t a EXISTING RIGHT NHANCED i OF WAY BUS STOP �1 l t; PROPOSED EASEMENT t9 en Off . O (� PROPOSED i 0 O EASEMENT a. IT EXISTING i n r;. `` RIGHT OF WAY ll. � � F LEGEND t t PERMANENT EASEMENT 6889 Sr i t I hereby cert77y that this plan, survey-or report 6245 BROOKLYN BOULEVARD BROOKLYN CENTER MN and prepared by me or under e my direct supervision J i and ,hat I am a duly Licensed Lord Surveyor under EXHIBIT C -he lams of -he State at Minnesota. Consulting Group,lw ---� Print NomeD..as.+f.�ca=. L i cense # CONSENT AND JOINDER BY MORTGAGEE The , holder of a mortgage on the property which is described as follows: Outlot 1,EWING LANE ADDITION,Hennepin County,Minnesota. Lot 21,AUDITIORS SUBDIVISION NUMBER 25,Hennepin County,Minnesota. hereby consents to the Declaration of Easement dated , 2015, filed , 2015 in the office of the Hennepin County Registrar of Titles as Document No. Dated: By: Its: By: Its: STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2015 by and the and of on behalf of the bank. Notary Public NOTARY STAMP OR SEAL THIS INSTRUMENT DRAFTED BY: City of Brooklyn Center Public Works Department 6301 Shingle Creek Parkway Brooklyn Center,MN 55317 (763) 569-3340 1 EDA Agenda Item No. 4a �I EDA ITEM MEMORANDUM DATE: October 26, 2015 TO: Curt Boganey,.City Manager FROM: Gary Eitel, Director of Business and Development 1 SUBJECT: Resolution Approving a Modification to the Redevelopment Plans for Housing Development and Redevelopment Project No. 1 and Establishing Tax Increment Financing District No. 6 Therein and Approving a Tax Increment Financing Plan Therefor. (TIF District No.6—Affordable Senior Housing) Recommendation: I� It is recommended that the Economic Development Authority(EDA) consider approval/adoption of the Resolution Approving a Modification to the Redevelopment Plans for Housing Development and Redevelopment Project No. 1 and Establishing Tax Increment Financing District No. 6 Therein and Approving a Tax Increment Financing Plan Therefor. (TIF District No.6—Affordable Senior Housing) Background: On October 26, 2015,the City Council is conducting a public hearing on the creation of Tax Increment District No. 6, a 25 year Housing District that is a part of the redevelopment plans for properties within the Brooklyn Boulevard corridor for senior housing. The Plan identifies the planned development of the 164 senior assisted care units on a portion of the site which meet the income requirements associated with the creation of a housing tax increment district,provides for a Finding and Need for Tax Increment Financing, and establishes a budget for the eligible uses of the projected tax increment projected. The budget, Section 111.G, Estimated Public Costs, includes the following: 1. Public utilities, site improvements/preparation costs $2,816,236 and other eligible improvements. 2. Pay-As-You-Note with interest expenses $2,883,872 3. Total Administrative Cost(2.5% of annual increment) 146,157 The creation of this tax increment district establishes a financing tool and mechanism to bridge funding gaps, undertake public improvements, and project enhancements. The future development approvals, including a PUD Amendment, Site Plan Approval, and Tax Increment Development Agreements, are the actions to be taken by the City Council and EDA to implement the redevelopment plans for this area and achieve the City's vision for the reimaging of this portion of the Brooklyn Boulevard corridor. Mission:Ensuring an attractive,clean,safe,inclusive community that enhances the quality of life for all people anal preserves the public trust EDA ITEM MEMORANDUM A copy of this Tax Increment Financing Plan, staff memorandum, and related background information are included in the October 26th Council agenda packet. . Budget Issues: The City and all tax jurisdictions will retain the 2015 base value of the current 5 properties. Additionally,the City will retain 2.5% of the annual tax increment received to cover administrative costs. Upon decertification of the District the captured tax capacity will be added to the base valuations of the respective taxing jurisdictions and used in the calculations of future tax rates. Strategic Priorities: • Targeted Redevelopment Mission:Ensuring an attractive,clean,safe,inclusive comintatity that enhances the quality of life for all people and preserves the public trust HousingDevelopment and Redevelopment Project No. 01 P p 1 and 'Tax Increment Financing (TIF) District No. 6 @ h h h 1' 10 '1 A B C D E . F G 114 1 A .0 LOCAL STREET 4 INDEX 5 71 1-1117-1111 6 '! , 6201 w.. w ' Q � i LZ \IAIAPGSTA LEGEND PARK , Project Area Boundary TIF District No.6 N city of BROOKLYN w+E CENTER o 0.25 os 1 Was S Created by:Brooklyn Center Business and Development DepUGIS Document Path:L:tUserslComDev\TIFareas\TIF_DISTRICT_No_6.mxd i Commissioner introduced the following resolution and moved its adoption: 1, RESOLUTION NO. { RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 6 THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR WHEREAS, it has been proposed that the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA") modify the Redevelopment Plan for its Housing and Redevelopment Project No. 1 (the "Redevelopment Project"); and establish Tax Increment Financing District No. 6 within the Redevelopment Project and adopt the Tax Increment Financing Plan (the "TIF Plan") therefor (collectively, the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047 and Sections 469.174 through 469.1794, as amended; all as reflected in that certain document entitled in part "Modification to Redevelopment Plan for Housing Development and J Redevelopment Project No. 1 and Tax Increment Financing Plan for Tax Increment Financing P District No. 6 (Housing District)" dated October 26, 2015, and presented for the Board's consideration; and WHEREAS, the Board has investigated the facts relating to the Plans; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption and approval of the Plans, including but not limited notice to the County Commissioner representing the area of the County to be included in TIF District No. 6, delivery of the Plans to the County and School Board and a review of the Plans by the Brooklyn Center Planning Commission; provided that that City Council will hold a public hearing thereon on the date hereof following notice thereof published in accordance with state law; and WHEREAS, the TIF District is being established to facilitate the acquisition, construction and equipping of an approximately 164 unit senior rental housing facility and related amenities (the"Development"); and WHEREAS, the Development will be owned by SCA Properties, LLC, a Florida limited liability company(or an affiliate to be established,the"Developer"). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA"), as follows: Section 1. Findings for the Adoption and Approval of the Plans. 1.01. The Board hereby finds that the boundaries of the Project Area are not being expanded and the Redevelopment Plan is not being modified other than to inoprporate the establishment of TIF District No. 6 therein and therefore the Board reaffirms the findings and determinations originally made in connection with the establishment of the Redevelopment Project area and the adoption of the Redevelopment Plan therefor. 1.02. The Board hereby finds that TIF District No. 6 is in the public interest and is a "housing district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portion of a project intended for occupancy, in part,by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial,retail or other nonresidential uses. 1.03. The Board of Commissioners hereby makes the following additional findings in connection with TIF District No. 6: (a) The Board of Commissioners further finds that the proposed development, in the opinion of the Board of Commissioners, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: The construction of the Development would not be undertaken in the reasonably foreseeable future. The property has remained undeveloped for several years despite previous efforts to redevelop the property. The Developer has represented that it could not proceed with the Development without the tax increment assistance to be provided to the Developer. (b) The Board of Commissioners further finds that the TIF Plan conforms to the general plan for the development or redevelopment of the EDA as a whole. The specific basis for such finding being: The TIF Plan will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The development contemplated on the property is in accordance with the existing zoning for the property. The Planning Commission has reviewed the Redevelopment Plan, and approved the same as being in conformity with the City's comprehensive plan and the general plan for the development and redevelopment of the City as a whole. (c) The Board of Commissioners further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the EDA as a whole for the development of TIF District No. 6 by private enterprise. The specific basis for such finding being: The proposed development to occur within TIF District No. 6 is a. primarily low and moderate income senior housing. The development will increase the taxable market valuation of the City, and the available low and moderate income senior housing facilities in the City. 1.04. The provisions of this Section 1 are hereby incorporated by reference into and made a part of the TIF Plan. 1.05. The Board further finds that the Plans are intended and in the judgment of the Board their effect will be to promote the public purposes and accomplish the objectives specified. in the TIF Plan for TIF District No. 6 and the Redevelopment Plan for the Redevelopment Project. Section 2. Approval and Adoption of the Plans; Policy on Interfund Loans and Advances. 2.01. The Plans, as presented to the Board on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted, and shall be placed on file in the office of the City Finance Director. Approval of the Plans does not constitute approval of any project or a development agreement with any developer. Subject to approval by the City Council following a public hearing, the Business and Development Director is hereby directed to request, in writing, the Hennepin County Auditor to certify the new TIF District No. 6 and to file the Plans with the Commissioner of Revenue and the Office of the State Auditor. 2.02. The Board hereby approves a policy on interfund loans or advances ("Loans") for TIF District No. 6, as follows: (a) The authorized tax increment eligible costs (including without limitation out-of-pocket administrative expenses in an amount up to $57,000) payable from the District, as its TIF Plan is originally adopted or may be amended, may need to be financed on a short-term and/or long-term basis via one or more Loans, as may be determined by the City Finance Director from time to time. (b) The Loans may be advanced if and as needed from available monies in any fund or account of the EDA designated by the City Finance Director. Loans may be structured as draw-down or"line of credit" obligations of the lending fund(s). (c) Neither the maximum principal amount of any one Loan nor the aggregate principal amount of all Loans may exceed the adopted and, if applicable, amended TIF Plan budget for TIF District No. 6. (d) The maximum term of any Loan shall not exceed 26 years or such earlier date as the City Finance Director may specify in writing. (e) The outstanding and unpaid principal amount of each Loan shall bear interest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178, Subdivision 7), which is the greater of the rates specified under Sections 270.75 or 549.09 at the time a Loan, or any part of it, is first made, subject to the right of the EDA Finance Director to specify a lower rate (but not less than the EDA's then-current average investment return for similar amount and term). Such Loans within the above guidelines are pre-approved. The Loans need not take any particular form and may be undocumented, except that the City Finance Director shall maintain all necessary or applicable data on the Loans. October 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. 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