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HomeMy WebLinkAbout2016 04-25 EDAPEDA MEETING City of Brooklyn Center April 25, 2016 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 28, 2016 —Regular Session b.Resolution Approving an Application from the EDA, Acting on Behalf of Hyde Development for a Hennepin County Environmental Financial Grant to Assist in Financing Additional Clean-up Costs with the Former Howe Fertilizer Site, Located at 3101 49th Avenue North 4. Public Hearings a. Resolution Approving Conveyance of Certain Property Located at 6121 Brooklyn Boulevard —Notice was published in the official newspaper on April 14, 2016. Requested Commission Action: —Motion to open Public Hearing. —Take public input. —Motion to close Public Hearing. —Motion to adopt resolution. 5.Commission Consideration Items a. Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 2500 Bass Lake Road (Former Brookdale Ford Site) Requested Council Action: —Motion to adopt resolution. 6.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 28, 2016 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 8:55 p.m. 2.ROLL CALL President Tim Willson and Commissioners April Graves, Kris Lawrence-Anderson, and Dan Ryan. Commissioner Lin Myszkowski was absent and excused. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. 3.APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. February 22, 2016— Regular Session Motion passed unanimously. 4.COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2016-08 APPROVING MODIFICATION TO REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1, ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 7 (REDEVELOPMENT DISTRICT) THEREIN AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR (OPPORTUNITY SITE) Director of Business and Development Gary Eitel introduced the item and explained the financing consideration for this redevelopment is with the EDA. He discussed the history and purpose of the proposed resolution to modify the redevelopment plan for the phased development within the southern 32 acres of the Opportunity Site for 7 apartment buildings with 03/28/16 -1- DRAFT 746 market rate apartment units, a 2-acre commons area with pool and activity building, a 50,000 square-foot performing arts center with 160 structured parking stalls, public and private utility, and street improvements to serve the development. Mr. Bitel reviewed the budget items as identified at tonight's City Council meeting, financing options, and use of other revenue sources. It was noted that the costs associated with establishing TIF District No. 7 and related site preparation costs will be funded by TIF District No. 3. He stated the purpose for creation of this tax increment district and explained the use of this financing tool is intended to occur as a companion action with the City Council's approval of governing PUD plans and platting of the project area into buildable lots, site plan approvals initiated by the developer of the individual lots, and the EDA's conveyance of these lots. Mr. Eitel presented staff's recommendation to adopt the resolution. President Willson asked about the apartment units in this project, noting the Metropolitan Council has a density requirement of 10 per acre that would be federally rent assisted. He asked where these 60 or 70 units would fit into this project. Mr. Eitel clarified the 10 units per acre is a Metropolitan Council standard for mid-density residential. The Metropolitan Council wants 30 units per acre for multiple family and this project would approach 20 units per acre in a 4-story building with underground parking. Mr. Eitel explained the housing goals of the Metropolitan Council, noting almost 90% of Brooklyn Center provides affordable housing to the region but there is not a diversity of housing for those who want to move up in a rental market. This project would provide that type of move- up rental housing with amenities and underground parking. In addition, providing senior housing in this project will open senior-owned single-family homes for sale. President Willson asked staff to follow up on the letter he received from the Minnesota Housing and Financing Agency about whether the City had made comment on the senior housing request for HUD funds. Commissioner Graves asked, since this is a redevelopment TIF District, if some requirements don't come into play. Mr. Eitel stated that is correct and it is the choice of the EDA whether to meet certain thresholds. Commissioner Graves asked if the townhomes will be geared towards move-up renters or low-income families. Mr. Eitel explained that staff saw it more as market rate rather than entry housing but a $200,000 mortgage may be comparable to rent rates so it may be move-up housing or senior housing. Commissioner Graves stated she sees the need for balance but does not want gentrification to happen with this project. She commented on the importance of making good decisions as well as setting expectations for this project. President Willson stated there are really two projects: affordable housing for seniors, which opens their single-family homes to the market, and market- rate rentals. Commissioner Ryan stated in 2006 he was astonished at the number of households that remained in the same family ownership for generations. However, this results in populations of a higher age. To make the City sustainable, residents with higher incomes are needed and those numbers 03/28/16 -2- DRAFT increased by diversifying the mix of housing. This will create economic diversity with more residents of above average means. President Willson stated there is also a jobs component that is needed. Commissioner Ryan moved and Commissioner Graves seconded to adopt EDA RESOLUTION NO. 2016-08 Approving Modification to Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Establishing Tax Increment Financing District No. 7 (Redevelopment District) Therein and Approving a Tax Increment Financing Plan Therefor (Opportunity Site). Motion passed unanimously. 4b. RESOLUTION NO 2016-09 ACCEPTING RUDRA MANAGEMENT'S LETTER OF INTENT FOR DEVELOPMENT OF LOT 2, BLOCK 1, BROOKLYN FARM 2 ADDITION AND AUTHORIZING THE PREPARATION OF A DEVELOPMENT AGREEMENT (PHASE II EMBASSY PUD SITE) Mr. Bitel introduced the item, discussed the history, and stated the purpose of the proposed resolution to accept Rudra Management's Letter of Intent (LOT) for development of Lot 2, Block 1, Brooklyn Farm 2'd Addition, with a new hotel and authorize the preparation of a Development Agreement (Phase II Embassy PUD). He presented the proposal to construct a 4-story, 83-room Marriott Fairfield Inn & Suites with construction planned to start in the third quarter of 2016 and completion the summer of 2017. He stated the purchase price is $100,000 without consideration of a tax abatement program. Springsted, Inc. has estimated the present net value of a 10-year tax abatement for this hotel valued at $5.6 million to be approximately $400,000. Mr. Bitel presented the site plan and recommended action to proceed with the LOT. Commissioner Lawrence-Anderson asked if the City is going to waive the $500,000 expense to construct the walkway link connecting the Embassy Suites Hotel to the Earle Brown Heritage Center. Mr. Eitel explained the EDA undertook the expense to complete the link but will collect $100,000. Mr. Boganey stated in the previous agreement, the EDA was going to offer a tax abatement with a net present value of $400,000. Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to adopt EDA RESOLUTION NO. 2016-09 Accepting Rudra Management's Letter of Intent for Development of Lot 2, Block 1, Brooklyn Farm 2nd Addition and Authorizing the Preparation of a Development Agreement (Phase II Embassy PUD Site). Motion passed unanimously. 5. ADJOURNMENT Commissioner Lawrence-Anderson moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 9:31 p.m. Motion passed unanimously. 03/28/16 DRAFT EPA Agenda Item No. 3b DATE: April 25, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Business and Development Director Tim Benetti, Planning and Zoning Specialist SUBJECT: Resolution Approving an Application from the EDA, acting on behalf of Hyde Development for a Hennepin County Environmental Financial Grant to Assist in Financing Additional Clean-Up Costs with the Former Howe Fertilizer Site, located at 3101 - 49th Avenue North. Recommendation: It is recommended that the Economic Development Authority of Brooklyn Center, Minnesota (EDA) consider approval of the Resolution Approving an Application from the EDA, acting on behalf of Hyde Development for a Hennepin County Environmental Financial Grant to Assist in Financing Additional Clean-Up Costs with the Former Howe Fertilizer Site, located at 3101 - 49th Avenue North Background: This memorandum addresses the continued clean-up efforts conducted by the property owners MBC II, LLC (a/k/a Hyde Development) in relation to the former Howe Chemical & Fertilizer site. The site is now fully redeveloped and recognized as Minneapolis Business Center II, which is the new home for Ferguson Fire and Fabrication facility. As part of the on-going and significant groundwater monitoring costs required by the Minnesota Department of Agriculture, Hyde is requesting additional grant funds from Hennepin County, specifically the Hennepin County Environmental Response Fund (ERF) Grant Program. Hennepin County offers specific and eligible funds for environmental clean-up services through this ERF program, which are typically issued to persons or companies seeking assistance with contaminated or polluted redevelopment sites in Hennepin County. The grant mechanisms require the local governing agency, or in this case the City of Brooklyn Center's EDA, to apply for the grant and be accountable for expenditure of said funds. Hyde Development will manage and conduct all monitoring and additional remediation (as necessary) through the company's own private contractors and consultants. The EDA essentially serves as a pass-through of the grant funds to the owners. The Developer indicated they are pursuing approximately $61,000 of additional grant funds, and expressed confidence that Hennepin County will look favorably on this grant request and provide the additional funds to assist in the on-going groundwater monitoring costs required by MN Dept. of Ag. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust Budget Issues: There are no direct budget impacts to consider, as Hyde Development will provide any local match required under the Hennepin County ERF grant. Presently, the EDA' s budget impact will be city staff time necessary to monitor the grants, process payment requests to MBC Il/Hyde Development as needed, submitting update reports (as requested), and maintaining financial records for the issuing agency. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2016 - RESOLUTION APPROVING AN APPLICATION FROM THE EDA, ACTING ON BEHALF OF HYDE DEVELOPMENT FOR A HENNEP1N COUNTY ENVIRONMENTAL FINANCIAL GRANT TO ASSIST IN FINANCING ADDITIONAL CLEAN-UP COSTS WITH THE FORMER HOWE FERTILIZER SITE, LOCATED AT 3101— 49TH AVENUE NORTH. WHEREAS, an application requesting grant funds from the Hennepin County Department of Environmental Services has been prepared for submission by the Economic Development Authority of Brooklyn Center, Minnesota (EDA), acting on behalf of Hyde Development; and WHEREAS, the grant funds will be used for additional environmental clean-up costs and groundwater monitoring of the former Howe Chemical Fertilizer Site, located at 3101 - 491h Avenue North Xerxes Avenue North in Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota (EDA) that the EDA supports the Environmental Financial Grant Application submitted to the Hennepin County Department of Environmental Services on May 1, 2016, by the EDA for the former Howe Chemical Site located at located at 3101 - 49' Avenue North Xerxes Avenue North in Brooklyn Center. April 25, 2016 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 wasdeclared duly passed and adopted. EPA Agenda Item No. 4a EDA ifEM MEMORANDUM DATE: April 25, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development SUBJECT: Resolution Approving the Conveyance of Certain Property located at 6121 Brooklyn Boulevard. Recommendation: It is recommended that the Economic Development Authority open the Public Hearing, take public input, close the Public Hearing, and consider adoption of Resolution Approving the Conveyance of Certain Property located at 6121 Brooklyn Boulevard. Background: On November 12, 2013, the EDA adopted Resolution No. 2013-16, Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (6121 Brooklyn Boulevard). On April 2, 2014, the EDA acquired the property for the amount of $1,500,000 from Kagel Investment Company. On March 9, 2015, the City Council/EDA Work Session included a discussion on the potential sale and redevelopment of approximately 5.5 acres of EDA owned properties, located at 6121, 6107 and 6101 Brooklyn Boulevard for an affordable assisted care senior apartment development consisting of the following: • a four story apartment building with 140, one-bedroom senior assisted care units; and • a one story building with 24 studio units offering specialized assisted care for seniors. The City Council/EDA reviewed a conceptual plan overlaid on an aerial photograph of the site and a narrative provided by SCA Properties and Evergreen Real Estate Development Corporation describing their plans to develop and operate an affordable assisted senior housing project using Low Income Housing Tax Credits and Medicaid Elderly Waiver reimbursements. On March 23, 2015, the EDA adopted Resolution No. 2015-06, a Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn Boulevard. On August 10, 2015, the City Council/EDA was informed that the funding gap had increased to $3,000,000 and that efforts to secure other financial support were unsuccessful. The following funding strategy was proposed for City Council/EDA's consideration: 1. The developer will address $1 .5M of the gap by deferring 50% of their development fee; and 114ission: Ensuring an attractive, clean, safe, inclusive connnunit3' that en/lances the qua/ui' of life for all people and preserves the public (inst 2.The creation of a TIF Housing District with a Pay-As—You-Go Note would provide the remaining $1.5 M cash needed, plus $300,000 for the future acquisition of two adjacent properties. 3.A revised site layout limited the development to the 6121 Brooklyn Boulevard site (4.5 acres acquired for $1,500,000) and that the 4. EDA's conveyance of the land would be in the form of a 2nd mortgage with provisions for a repayment formula from the proceeds of a future sale. On October 26, 2015, the City Council conducted a public hearing on establishing a new Affordable Housing TIF District for this senior housing project. After conducting the public hearing, the Council moved to adopt Resolution No. 2015-163, a Resolution Approving a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 and Establishing a Tax Increment Financing District Therein and Approving a Tax Increment Financing Plan Therefor (TIF District No. 6, Affordable Senior Housing). The EDA also adopted a companion resolution, Resolution No. 20 15-24. On January 25, 2016, the City Council adopted Resolution 2016-19, A Resolution Regarding the Disposition of Planning Commission Application No. 2016-01, Submitted by SCA Properties LLC Requesting Approval of a Planned Unit Development Amendment and Site and Building (Development) Plan Approval for The Sanctuary of Brooklyn Center, the 158-unit Senior Assisted Living Housing Project, located at 6121 Brooklyn Boulevard. On February 8, 2016, the EDA adopted Resolution No. 2016-04, A Resolution Approving a Development Agreement and Purchase Agreement (SCA Properties Senior Housing Project). The purchase agreement established the price for this 4.5 acre lot at $1,500,000 and provides for the following conditions that the buyer, SCA Properties, LLC, will need to complete and deliver to the City no later than September 30, 2016: (i)A Purchase Price Promissory Note in the $1,500,000 and a Purchase Price Mortgage as approved by the City Attorney. (ii)A title insurance policy (iii)Approved plans, specifications, drawing and related documents for the construction of the minimum improvements consistent with the PUD (iv)Evidence that they have closed on construction financing for the project and certify that there are sufficient funds and equity commitments to complete the construction of the Project - (v)The Declaration of Restrictive Covenants as defined in the TIF Development Agreement (vi)The PUD Agreement (vii) The TIF Development Agreement Resolution Approving the Conveyance of Certain Property located at 6121 Brooklyn Boulevard. The City Attorney has prepared the attached resolution which includes the EDA findings and determination that conveyance of the Property to the Buyer is in the public interest and will further Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust the objectives of its general plan of economic development, because it will provide an opportunity for increased affordable senior housing opportunities in the City and serve as an impetus for further development. Also attached is the notice of this public hearing which was published in the April 7th edition of the City's Official Newspaper. Budget Issues: The costs associated with the acquisition of 6121 Brooklyn Boulevard have been funded by tax increment housing funds and future repayment of the Purchase Price Note will be deposited in the EDA's tax increment housing fund. 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 (rust I M PJ1 V U ak'A LA I ak 0) UIiIJ!A I 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, April 25, 2016 to conduct a public hearing on the proposed sale of certain real property ("Property") located in the City to SCA Properties, LLC. The Property is located in the City at 6121 Brooklyn Boulevard and legally described as: (i) that part of Lot 1, Block 1, Chrysler Motors Corporation 2nd Addition lying North of the North line of Lot 23, Auditor's Subdivision No. 2, Hennepin County, Minnesota and (ii) Lot 1, Block 1, Chrysler Motors Corporation 2nd Addition, except that part lying North of the North line of Lot 23, Auditor's Subdivision No. 25, Hennepin County, Minnesota. 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: April 7, 2016 1'I!ssioi,: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust 6000 6100 BLOCK BROOKLYN BOULEVARD Rol j Ld re 19 L : ' 6225 \\\ v.: 4 -' r L-1 7 ) 3813',j:!j^;M3707 Eli oo LI 4\ 6121jjL1, \I C\ 'V1 1p ea te 12 'r6 1N f6l sl \\ ' \ ti6110r ! '\ 6107 \ T' -- \J;_ 'i r' IF ' \ —-=-44 'fT1; - 4 - I I k - -4 .--- - 60431'42 .:- _-. — 1 - - --S Til 718 -1 1 6024 0 25 50 IDO ISO 2 r-rL.r --• .—IFeaI Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2016 - RESOLUTION APPROVING CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 6121 BROOKLYN BOULEVARD WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA") is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act"), to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, to facilitate development of certain property in the City of Brooklyn Center, Minnesota (the "City"), the EDA entered into an Agreement of Purchase and Sale (the "Purchase Agreement") between the EDA and SCA Properties, LLC (or its assigns, the "Buyer"), under which, among other things, the EDA has agreed, contingent upon approval by the EDA following a duly noticed public hearing regarding the sale, to convey the property located in the City at 6121 Brooklyn Boulevard and legally described as: That part of Lot 1, Block 1, Chrysler Motors Corporation 2nd Addition lying North of the North line of Lot 23, Auditor's Subdivision No. 25, Hennepin County, Minnesota. and Lot I, Block 1, Chrysler Motors Corporation 2nd Addition, except that part lying North of the North line of Lot 23, Auditor's Subdivision No. 25, Hennepin County, Minnesota. (the "Property") to the Buyer to construct a multi-family senior assisted living housing development on the Property, intended to be rented by seniors for individual or family occupancy; and WHEREAS, the EDA has on this date conducted a duly noticed public hearing regarding the sale of the Property to Buyer, at which all interested persons were given an opportunity to be heard; and WHEREAS, the EDA finds and determines that conveyance of the Property to the Buyer is in the public interest and will further the objectives of its general plan of economic development, because it will provide an opportunity for increased affordable senior housing opportunities in the City and serve as an impetus for further development. EDA RESOLUTION NO. 2016- NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota (the "Board") as follows: The Board hereby approves the conveyance of the Property to Buyer pursuant to the Purchase Agreement, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director. 2. EDA staff and officials are authorized to take all actions necessary to perform the EDA's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the EDA is a party referenced in or attached to the Purchase Agreement, and any deed, mortgage or other documents necessary to convey the Property to Buyer, all as described in the Purchase Agreement. This resolution supplements but does not amend EDA Resolution No. 2016-04, adopted February 8, 2016 regarding the sale of the Property. April 25, 2016 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. EDA ITEM 4.A APRIL 25, 2016 Public Hearing to Consider the Conveyance of Certain Property Located at 6121 Brooklyn Boulevard Notice was published in the official newspaper on April 14, 2016. BACKGROUND-LAND USE – OPPORTUNITY AREAS Planning Commission’s review of Brooklyn Boulevard Corridor Study recognized the potential redevelopment of this property as a candidate site for independent and assisted senior housing opportunities. On November 12, 2013, the EDA adopted Resolution No. 2013-16, Resolution Authorizing the Acquisition of Property to Facilitate Neighborhood Improvements and Redevelopment Opportunities within the Brooklyn Boulevard Corridor (6121 Brooklyn Boulevard). On April 2, 2014, the EDA acquired the property for the amount of $1,500,000 from Kagel Investment Company. On March 9, 2015, the City Council/EDA Work Session included a discussion on the potential sale and redevelopment of approximately 5.5 acres of EDA owned properties, located at 6121, 6107 and 6101 Brooklyn Boulevard for an affordable assisted care senior apartment development consisting of the following: •a four story apartment building with 140, one-bedroom senior assisted care units; and •a one story building with 24 studio units offering specialized assisted care for seniors. On March 23, 2015, the EDA adopted Resolution No. 2015-06, a Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn Boulevard. On August 10, 2015, the City Council/EDA was informed that the funding gap had increased to $3,000,000 and that efforts to secure other financial support were unsuccessful. The following funding strategy was proposed for City Council/EDA’s consideration: 1. The developer will address $1.5M of the gap by deferring 50% of their development fee; and 2. The creation of a TIF Housing District with a Pay-As–You-Go Note would provide the remaining $1.5 M cash needed, plus $300,000 for the future acquisition of two adjacent properties. 3. A revised site layout limited the development to the 6121 Brooklyn Boulevard site (4.5 acres acquired for $1,500,000) and that the 4. EDA’s conveyance of the land would be in the form of a 2nd mortgage with provisions for a repayment formula from the proceeds of a future sale. On October 26, 2015, the City Council conducted a public hearing on establishing a new Affordable Housing TIF District for this senior housing project. After conducting the public hearing, the Council moved to adopt Resolution No. 2015-163, a Resolution Approving a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 and Establishing a Tax Increment Financing District Therein and Approving a Tax Increment Financing Plan Therefor (TIF District No. 6, Affordable Senior Housing). The EDA also adopted a companion resolution, Resolution No. 2015-24. On January 25, 2016, the City Council adopted Resolution 2016-19, A Resolution Regarding the Disposition of Planning Commission Application No. 2016-01, Submitted by SCA Properties LLC Requesting Approval of a Planned Unit Development Amendment and Site and Building (Development) Plan Approval for The Sanctuary of Brooklyn Center, the 158-unit Senior Assisted Living Housing Project, located at 6121 Brooklyn Boulevard. On February 8, 2016, the EDA adopted Resolution No. 2016-04, A Resolution Approving a Development Agreement and Purchase Agreement (SCA Properties Senior Housing Project). The purchase agreement established the price for this 4.5 acre lot at $1,500,000 and provides for the following conditions that the buyer, SCA Properties, LLC, will need to complete and deliver to the City no later than September 30, 2016: A Purchase Price Promissory Note in the $1,500,000 and a Purchase Price Mortgage as approved by the City Attorney. A title insurance policy Approved plans, specifications, drawing and related documents for the construction of the minimum improvements consistent with the PUD Evidence that they have closed on construction financing for the project and certify that there are sufficient funds and equity commitments to complete the construction of the Project The Declaration of Restrictive Covenants as defined in the TIF Development Agreement The PUD Agreement The TIF Development Agreement RESOLUTION APPROVING THE CONVEYANCE OF CERTAIN PROPERTY LOCATED AT 6121 BROOKLYN BOULEVARD. The EDA findings and determination that conveyance of the Property to the Buyer is in the public interest and will further the objectives of its general plan of economic development, because it will provide an opportunity for increased affordable senior housing opportunities in the City and serve as an impetus for further development. BUDGET ISSUES: The costs associated with the acquisition of 6121 Brooklyn Boulevard have been funded by tax increment housing funds and future repayment of the Purchase Price Note will be deposited in the EDA’s tax increment housing fund. REQUESTED COMMISSION ACTION:  Motion to open Public Hearing.  Take public input.  Motion to close Public Hearing.  Motion to adopt resolution Approving Conveyance of Certain Property Located at 6121 Brooklyn Boulevard EDA Agenda Item No. 5a EDA if EM MEMORANDUM DATE: April 25, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 2500 County Road 10 (former Brookdale Ford Site) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 2500 County Road 10 (fonnr Brookdale Ford Site). Background: On December 10, 2007, the EDA approved Resolution No. 2007-22, A Resolution Authorizing the Purchase of Property located at 2500 County Road 10. On July 7, 2008 the EDA approved Resolution No. 2008-09, a Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property at 2500 County Road 10 (Former Brookdale Ford). The demolition included the removal of two commercial building comprising approximately 42,792 sf gross floor area. An environmental investigation determined that the removal of the concrete slabs, hydraulic floor lifts, and interior floor drains & waste traps should be coordinated with the future redevelopment of the property. On September 28, 2015, the EDA approved Resolution 2015 -20, a Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property at 5900 Shingle Creek Parkway (Brookdale Square Commercial Center) which is adjacent to the former Brookdale Ford Site. On October 12, 2015, the EDA entered into a Preliminary Development Agreement with Sand Development Co. for the development of 32 acres within the Opportunity Site that included the former Brookdale Square and Brookdale Ford properties for a mixed use residential planned unit development. A change order to the Brookdale Square Demo Contract facilitated the removal of the concrete slabs, footings, and foundations of the former Brookdale Ford building pads. The EDA retained the service of Groundwater & Environmental Services, Inc. to review the prior environmental reports and provide recommendations in the preparation of specifications and bid documents to complete the demolition and removal of contaminated soils. Attached for your reference is a copy of the GES letter on their File Review and Site Recommendations, an aerial photograph of the site, and a floor plan of the former Brookdale Ford buildings which identifies the excavation areas and quantities of material to be removed. Mission: Ensuring an attractive, clean, safe, inclusive coniniunitj' that enhances the quality of life for (Il/people and preserves the public trust Demolition Specifications included the following: 1. Base Bid providing for the excavation, removal, demolition and hauling away the following: a)1500 yards of contaminated soil b)Hydraulic hoists/hydraulic fluids and all remaining cement block footing with concrete pads c)Waste traps and all fluids d)13,000 gallon propane underground storage tank e)Surface fencing around top of propane tank and all parking bollards f)Three fuel meters g)All surface and sub-surface pipes h)Volunteer tree in fence area. 2. Bid alternate #1 provided a unit pricing to excavate, transport, and dispose of additional contaminated soils On March 10, 2016 and March 17, 2016 notice of demolition bid advertisement was published in the official newspaper. On March 23, 2016, 4 contractors attended the on-site mandatory pre-bid meeting and received bid packages. April 5th Bid Opening The following bids were received: Rachel Contracting $114,700 Bid Alternate #1 $55 per yd. Veit & Company Inc. $115,567 Bid Alternate 41 $40 per yd. Carl Bolander & Sons $133,500 Bid Alternate # 1 $55.30 per yd. Rachel Contracting, a demolition contractor previously used by the EDA for the demolition of the former Cars with Heart building and the Brookdale Square building, has been recommended as the contractor with the lowest responsive and responsible bid. Budget Issues: The demolition costs for this site are being funded from Tax increment District No. 3. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhancesances the quality of life for all people and preserves the public (rust ro^_ Q Grnui,dwatr & Enykonrnental S e rvic e s, n. MINNESOTA OFFICE February 18, 2016 Mr. Gary Bitel Director of Business & Development City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RE: File Review and Site Recommendations Former Brookdale Ford Dealership 2500 County Road 10 Brooklyn Center, Minnesota 55430 Dear Mr. Eitel: On behalf of the City of Brooklyn Center (City), GES conducted file reviews of Minnesota Pollution Control Agency (MPCA) records related to the former Brookdale Ford Dealership (Site). The review of MPCA files was requested by the City for the purpose of determining locations and extent of subsurface contamination at the Site. This work was authorized by the City on January 15, 2016. The following MPCA files associated with the site were reviewed by GES. e MPCA Petroleum Remediation Program -Leak #11810 Leak #11810 was associated with four underground storage tanks (USTs) that were removed in September 1998. The USTs were located outside the northeast corner of former sales/maintenance building and consisted of two 1,000-gallon motor oil USTs, one 1,000-gallon used oil UST, and one 500-gallon transmission fluid UST. The leak site was closed by the MPCA in March 1999. o MPCA Petroleum Remediation Program -Leak #17135 Leak #17135 was reported to the MPCA base on a Phase II Investigation conducted at the site. The release was attributed to the current/former hydraulic hoists located in the former sales/maintenance building and the former body shop building. The leak number was closed by the MPCA in June 2010. MPCA Brownfield Program - VP24140 In February , 2008, the City enrolled the site into the MPCA - Voluntary Investigation and Cleanup (MPCA - VIC) program. The purpose of the Site enrollment was to obtained No Association Determination (NAD) assurance to the identified non-petroleum release at the site of Tetrachloroethylene (PCB), 2-Butanone (MEK), and Polychlorinated Biphenyls (PCBs) in the soil. The MPCA - VIC program issued a NAD assurance on February 13, 2008, pending the filing an affidavit with Hennepin County Recorder or Registrar of Titles describing the non-petroleum contamination remaining at the Site. 1285 Corporate Center Dr., Suite 120, Eagan, MN 55121 • 1 -800 -735-1077 • wwwgesonhIne.Cofl1 Mr. Gary Eitel Februaiy 18, 2016 Page 2 File Review Summary Subsurface investigations conducted for Leak #118 10 and #17135 included the installation of over 45 soil borings at the site. Soil samples were collected from the borings and screened for volatile organic vapors using a photoionization detector (PID). Additionally, soil, groundwater, and soil gas samples were collected from the borings for laboratory analysis. Results from the investigations indicated that petroleum soil and groundwater contamination remains at the site. Soil contamination remaining at the Site includes Diesel Range Organics (DRO) concentrations ranging from 19 to 7,400 milligrams per kilogram (mg/kg). The DRO contamination is located beneath the former sales/maintenance building and body shop floor in the vicinity of the hydraulic hoists to depths ranging from approximately 3 to 14 feet below grade. This information is summarized in Attachment 1 as Table 2 and Figure 3A. Groundwater was encountered at depths ranging from 12 to 14 feet below grade and had minor DRO concentrations up to 810 micrograms per liter (ug/1). Groundwater concentrations are detailed in Table 3 of Attachment 1. Non-petroleum compounds, including PCE, IvIEK and PCs, were detected in Site soils within the footprint of the former sales/maintenance building. However, these compounds were detected at concentrations below MPCA - Tier I Residential Soil Reference Values (RSRVs) (Table 2 and Figure 3A of Attachment 1). Soil gas concentrations of non-petroleum compounds, including PCE, Dichlorodifluoromethane, Trichlorofluoromethane, and Trichloroethylene, were detected at 5 of the 9 soil gas borings above MPCA Intrusive Screening Values. Soil gas sample results and sample locations are included in Table 20 and Figure 3B of Attachment 1 and were obtained from Liesch's Limited Site Investigation Report, dated March 2010. Recommendations As requested by the City, GES has reviewed subsurface investigation reports obtained from the MPCA Site files with the objective of fulfilling the City's request to remove contaminated soil at the Site to allow for the future sale of the property to a developer. Therefore, based on the results of the site investigations conducted at the Site and the City's desire for soil contamination to be removed, GES recommends the following. o Excavate and remove all remaining hydraulic hoists and waste traps located at the site. Collect soil samples from beneath each hoist/waste trap for PID field screening and appropriate laboratory analysis. o Excavate soil contaminated with DRO concentrations above 10 mg/kg at areas identified during the previous site investigations. Approximate excavation locations including lengths, widths and depths are noted on the figure provided in Attachment 2. o The former building footprint may require a survey to accurately locate the previous site investigation soil boring locations so that contaminated area are readily identified. o Collect base and sidewall soil samples for laboratory analysis from the final excavation limits to document remaining soil conditions. Prior to backfilling the excavations, confirmation analytical results should be reviewed to document if all contaminated soil has been excavated. Further excavation may be required if analytical results indicate contamination remains. 1285 Corporate Center Dr., Suite 120, Eagan, M14 55021 . -.800-735-1077 . Www.gesonline.com vl Mn Gay Ellel Februaiy 18, 2016 Page 3 o Dispose of the contaminated soil at a Minnesota Licensed MSWllndustrial Landfill. A landfill soil waste profile should be completed and landfill approval received prior to contaminated soil disposal. o Excavate and remove the 13,000-gallon propane UST located in the fenced in area north of the former sales/maintenance building. The UST should be removed by a qualified tank contractor and all safety measures should be followed. o Based on the MPCA issuance of the February 13, 2008 NAD Letter, any person who is planning any use or activity which has the potential to disturb the areas of non-petroleum (PCE, MEK and PCBs) contamination should contact the MPCA prior to commencement of the planned activities. It is a pleasure to be of service to the City on this project. If you have any questions, please feel free to contact Rob or me at 800-735-1077. Sincerely, Environmental Services, Inc. James F. Simonet, P.G. 'r. Project Geologist isimonet(geson1ine.cojn Ext. 3180 obert E. Jenson, CHMM Operations Manager rienson@gesonline.com Ext. 3174 1285 Corpo,te Center Or,, Suite 120, Eagan, MN 55121 • 1-800-735-1077 ViW.g50flhifle.00rn 1J / w •ihi7 L PL Al L L L L 3 OQ Lk LL 0 S . > KEEL !LI H L - - \\- [L1- 's--- - 0 0 0 z / - - --- - - I -,- >- ('1 0 (0 o oo < -10 - T 0N II ----------------------------- ; =;= Ij Ij E l.0 i1I : I rIi • 0 — o till Fool - I lii \ N \ \LJL.flJJ p co T I • 4) ° .4LI 00 Ln El 4 C) 0 - 1p4eUUooUe4vM PUtI4UCROUSt7) Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2016 - RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR DEMOLITION OF EDA OWNED PROPERTY LOCATED AT 2500 COUNTY ROAD 10 (FORMER BROOKDALE FORD SITE). WHEREAS, on March 10, 2016 and March 17, 2016, notice of demolition bid advertisement were published in the official newspaper which set a mandatory pre-bid meeting date for March 23, 2016 and a bid opening date for April 5, 2016; and WHEREAS, 4 contractors viewed the property and expressed an interest in receiving the bid package; and WHEREAS, the base bid provided for the excavation, removal, demolition and hauling away the following from the property: a)1500 yards of contaminated soil; b)hydraulic hoists/hydraulic fluids and all remaining cement block footing with concrete pads; c)waste traps and all fluids; d)13,000 gallon propane underground storage tank; e) surface fencing around top of propane tank and all parking bollards; ilE) three (3) fuel meters; g)all surface and sub-surface pipes; and h)volunteer trees in fence area. WHEREAS, the bid alternate #1 provided a unit pricing to excavate, transport. and dispose of additional contaminated soils; and WHEREAS, on April 5, 2016, the following bids were received: Rachel Contracting $114,700 Bid Alternate #1 $55 per yd. Veit & Company Inc. $115,567 Bid Alternate #1 $40 per yd. Carl Bolander & Sons $133,500 Bid Alternate # 1 $55.30 per yd. WHEREAS, the bids have been reviewed and Rachel Contracting has been determined to have provided the lowest responsive and responsible bid for the demolition at 2500 County Road 10 (former Brookdale Ford Site). EDA RESOLUTION NO. 2016 - NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota that the EDA Director is hereby authorized and directed to enter into the Contract for Demolition Services with Rachel Contracting for 2500 County Road 10, Brooklyn Center, Minnesota. April25,_2016 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. EDA ITEM 5.A APRIL 25, 2016 Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 2500 Bass Lake Road (Former Brookdale Ford Site) Southern Area: 47.36 acres lying north of Bass Lake Road and south of John Martin Drive, anchored by the EDA properties (the former Brookdale Square and Brookdale Ford sites) BACKGROUND: On December 10, 2007, the EDA approved Resolution No. 2007-22, A Resolution Authorizing the Purchase of Property located at 2500 County Road 10. On July 7, 2008 the EDA approved Resolution No. 2008-09, a Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property at 2500 County Road 10 ( Former Brookdale Ford). The demolition included the removal of two commercial building comprising approximately 42,792 sf. gross floor area. An environmental investigation determined that the removal of the concrete slabs, hydraulic floor lifts, and interior floor drains & waste traps should be coordinated with the future redevelopment of the property. On September 28, 2015, the EDA approved Resolution 2015 -20, a Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property at 5900 Shingle Creek Parkway (Brookdale Square Commercial Center) which is adjacent to the former Brookdale Ford Site. A change order to the Brookdale Square Demo Contract facilitated the removal of the concrete slabs, footings, and foundations of the former Brookdale Ford building pads. On October 12, 2015, the EDA entered into a Preliminary Development Agreement with Sand Development Co. for the development of 32 acres within the Opportunity Site that included the former Brookdale Square and Brookdale Ford properties for a mixed use residential planned unit development. THE EDA RETAINED THE SERVICE OF GROUNDWATER & ENVIRONMENTAL SERVICES, INC. TO REVIEW THE PRIOR ENVIRONMENTAL REPORTS AND PROVIDE RECOMMENDATIONS IN THE PREPARATION OF SPECIFICATIONS AND BID DOCUMENTS TO COMPLETE THE DEMOLITION AND REMOVAL OF CONTAMINATED SOILS. Demolition Specifications included the following: 1. Base Bid providing for the excavation, removal, demolition and hauling away the following: 1500 yards of contaminated soil Hydraulic hoists/hydraulic fluids and all remaining cement block footing with concrete pads Waste traps and all fluids 13,000 gallon propane underground storage tank Surface fencing around top of propane tank and all parking bollards Three fuel meters All surface and sub-surface pipes Volunteer tree in fence area. 2. Bid alternate #1 provided a unit pricing to excavate, transport, and dispose of additional contaminated soils On March 10, 2016 and March 17, 2016 notice of demolition bid advertisement was published in the official newspaper. On March 23, 2016, 4 contractors attended the on-site mandatory pre-bid meeting and received bid packages. April 5th Bid Opening The following bids were received: Rachel Contracting $114,700 Bid Alternate #1 $55 per yd. Veit & Company Inc. $115,567 Bid Alternate #1 $40 per yd. Carl Bolander & Sons $133,500 Bid Alternate # 1 $55.30 per yd. Rachel Contracting, a demolition contractor previously used by the EDA for the demolition of the former Cars with Heart building and the Brookdale Square building, has been recommended as the contractor with the lowest responsive and responsible bid. BUDGET ISSUES & RECOMMENDATION: Budget Issues: The demolition costs for this site are being funded from Tax increment District No. 3. Recommendations: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 2500 County Road 10 (former Brookdale Ford Site).