HomeMy WebLinkAbout2016 04-11 EDAM Regular SessionMINUTES 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
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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. Eitel 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 staffs 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
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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
2ND ADDITION AND AUTHORIZING THE PREPARATION OF A
DEVELOPMENT AGREEMENT (PHASE II EMBASSY PUD SITE)
Mr. Eitel 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' 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. Eitel
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.
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STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss. Certification of Minutes
CITY OF BROOKLYN CENTER)
The undersigned, being the duly qualified and appointed Secretary of the Economic
Development Authority (EDA) of the City of Brooklyn Center, Minnesota, certifies:
That attached hereto is a full, true, and complete transcript of the minutes of a Regular
Session of the Economic Development Authority (EDA) of the City of Brooklyn Center
held on March 28, 2016.
2. That said meeting was held pursuant to due call and notice thereof and was duly held at
Brooklyn Center City Hall.
That the Economic Development Authority (EDA) adopted said minutes at its April 25,
2016, Regular Session.
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