HomeMy WebLinkAbout2016 05-23 EDAP i
EDA MEETING
City of Brooklyn Center
May 23, 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.
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a. Approval of Minutes
1. May 9,2016—Regular Session
4. Commission Consideration Items
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a. Resolution Approving a Contract for Private Development (Brooklyn Center
Hotel Group, LLC,Embassy Suites Phase II) j
5. Adjournment I
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EDA Agenda Item No. 3a
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MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MAY 9, 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 7:12 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Kris Lawrence-Anderson and Lin Myszkowski were
present. Commissioners Dan Ryan and'April Graves were absent and excused. Also present were
Executive Director Curt Boganey, Interim Assistant to the City Manager Reggie Edwards,
Director of Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Michaela
Kujawa-Daniels, TimeSaver Off Site Secretarial, Inc.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Myszkowski moved and Commissioner Lawrence-Anderson seconded to approve
the Agenda and Consent Agenda, and the following items were approved:
3a. APPROVAL OF MINUTES
1. April 25, 2016—Regular Session
3b. RESOLUTION NO. 2016-13 APPROVING THE TERMINATION OF THE
DECLARATION OF COVENANTS AND RESTRICTIONS ON
PROPERTY LOCATED AT 6121 BROOKLYN BOULEVARD
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4. COMMISSION CONSIDERATION ITEMS
None.
5. ADJOURNMENT
Commissioner Myszkowski moved and Commissioner Lawrence-Anderson seconded
adjournment of the Economic Development Authority meeting at 7:14 p.m.
Motion passed unanimously.
05/09/16 -1- DRAFT
EDA Agenda Item No_ 4a
EDA ITEM MEMORANDUM
i DATE: May 23,2016
TO: Curt Boganey, City Manager
FROM: Gary Eitel,Director of Business 8c Development ��-
SUBIECT: Resolution Approving a Contract for Private Development (Brooklyn Center
Hote] Group,LLC,Embassy Suites Phase II)
Recommendation:
It is recommended that the Economic Development Authority consider approvaLadoption of
Resolution Approving a Contract for Private Development(Brooklyn Center Hotel Group, LLC,
Embassy Suites Phase II).
BacKground:
On March 28, 2016, the Economic Development Authority adopted Resolution No. 2016-09, a
Resolution Accepting Rudra Management's Letter of Intent for Development of Lot 2, Block 1,
- Brooklyn Farm 2id Addition and Authorizing the Preparation of a Development Agreement
(Phase II Embassy PUD). The resolution authorized the following actions:
1. The Executive Director execution of tkie Letter of Intent with Minnesota Hospitality
Inc. for the development of a 4 story 83 room Marriott Fairfield Inn a4r. Suites
consistent with the conceptual development plans of the approved with the 2013 PUD
amendment.
2. To proceed with the negotiations for the sales of this site,excluding the portion of the
lot containing the pond and trail, for $100,000, without provisions fora 30 year Tax
Abatement Plan, as initially approved in 2007 for the Phase I and II development.
3. To proceed with the preparation o£a development agreement with terms, conditions,
and actions necessary for the conveyance and development of Lot 2, Block 1,
Brooklyn Farms 2"a Addition.
Attached for your reference is a copy o£Resolution No. 2016-09 and the accompanying staff
memorandum and PowerPoint Presentation provided at the March 28+h EDA meeting
Contract for Private Development for a Marriot FairReld Inn &r Suites.
- The City Attorney has prepared the attached Contract for Private Development By and Between
the Economic Development Authority of Brooklyn Center, Minnesota and Brooklyn Center
- Hotel Group, LLC. The development contract has been signed by Harshal Patel.
The Following identifies the major components of the Contract for Private Development:
1. The minimum improvements are identified as a hotel facility containing at least 82
rooms with 85 parking stalls constructed in accordance with the Construction Plans as
� approved by the EDA and City and the 2007 Planned Unit Development conditions,
including the 2013 PUD amendments,adopted{or the Property.
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EDA ITEM MEMORANDUM
2. The purchase price has been established at $100,000 for the building site of the
minimum improvements. The EDA will continue to own the eastern portion of the
lot which includes the pond and trail.
3. The contract identifies the following schedule:
a. Within 30 days of the execution of the contract the developer shall submit
dated construction plans to the EDA.
b. The closing date is identified as August 1, 2016 or such other date as may be
agreed to the Developer and EDA in writing.
c. The construction schedule includes commencement no later than October 1,
2016 and completion no later than October 1, 2017.
4. The development does require compliance with the Business Subsidy Act which
includes the following:
a. The subsidy provided to the Developer includes a reduction in the sale price
from the Development Property's estimated market value to a sales price of
$100,000.
b. A Jobs and Wage Goals requiring the creation of a minimum of 4 new full-
time equivalent jobs at a rate no less than the state's minimum wage,
exclusive of benefits. The remedy for the Developer failing to meet these
goals is identified in Article V, Section 5.1, (c) to be the repayment of the
subsidies in the amount of$100,000 for each full time position not created,
plus interest.
5. Section VI, Events of Default, defines defaults by either party, remedies on defaults,
and includes the revesting interest in the EDA upon happenings of event of default
subsequent to conveyance to the Developer. j
The following identifies the meeting schedule for an August 1St closing:
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- May 23�h approval of the Development Contract.
- June 14 site plan submittal for the July 14 Planning Commission
- July 14th Planning Commission Review&Recommendation
- July 25th City Council Site Plan Approval and Public Hearing on Business Subsidy
- July 25th EDA Public Hearing on the sales of land
Budget Issues:
The EDA has a fund balance of approximately $1,000,000 and is in a financial position that does
not necessitate the reimbursement of the funds previously used to complete the link connecting
the Embassy Suites Hotel to the Earle Brown Heritage Conference Center.
The development of a Marriot Fairfield Hotel at this site will complement the marketing efforts
by the Earle Brown Heritage Center for conferences and receptions.
Strategic Priorities:
® Targeted Redevelopment
Mission:Ensuring on attractive,clean,safe,inclusive conunnnioy that enhances the quality of life
for all people and preserves the public trust
Commissioner introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING A CONTRACT FOR PRIVATE
DEVELOPMENT (BROOKLYN CENTER HOTEL GROUP, LLC
EMBASSAY SUITES PHASE 11)
WHEREAS, the EDA has received a proposal from Brooklyn Center Hotel
Group, LLC, (the "Developer") that the EDA assist the Developer with certain public costs
associated with the construction of a hotel facility containing at least 82 rooms(the"Project");
WHEREAS, the EDA has caused to be prepared a Private Development
Agreement by and between the EDA and the Developer(the "Development Agreement") setting
forth the terms setting forth the terms of the sale of the Property to the Developer and conditions
under which the Developer will construct the Project and the EDA will provide a business
subsidy in connection therewith;
WHEREAS, the EDA the Development Agreement sets forth the terms of the
sale, in connection with the Project, of property located in the City of Brooklyn Center,
Hennepin County,Minnesota legally described as (the"Property");
WHEREAS, the conveyance of the Property remains contingent upon approval by
the EDA following a duly noticed public hearing regarding the sale of the Property to Developer;
WHEREAS, the EDA believes that the development of the Project pursuant to the
Development Agreement, and fulfillment generally of the Development Agreement, are in the
vital and best interests of the EDA and the health, safety,morals, and welfare of its residents, and
in accord with the public purposes and provisions of the applicable State and local laws and
requirements under which the development has been undertaken and is being assisted.
NOW, THEREFORE, BE IT RESOLVED By the Board of Commissioners (the
"Board") of the Economic Development Authority of City of Brooklyn Center, Minnesota as
follows:
1. The EDA hereby approves the Development Agreement (provided however that the
conveyance of the Property is subject to approval by the EDA following a duly
noticed public hearing) and the Development Agreement in substantially the forms
presented to the Board, together with any related documents necessary in connection
therewith, including without limitation all documents referenced in or attached to the
Development Agreement, and any deed or other documents necessary to convey the
Property to Developer, all as described in the Development Agreement (collectively,
the "Development Documents") and the President and the Executive Director are
hereby authorized and directed to exec-Lite the Development Documents on behalf of
the EDA and to carry out, on behalf of the EDA, the EDA's obligations thereunder.
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EDA RESOLUTION NO.
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2. The approval hereby given to the Development Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and
appropriate and approved by legal counsel to the EDA and by the officers authorized
herein to execute said documents prior to their execution; and said officers are hereby
authorized to approve said changes on behalf of the EDA. The execution of any
instrument by the appropriate officers of the EDA herein authorized shall be
conclusive evidence of the approval of such document in accordance with the terms
hereof. In the event of absence or disability of the officers, any of the documents
authorized by this Resolution to be executed may be executed without further act or
authorization of the Board by any duly designated acting official, or by such other
officer or officers of the Board as, in the opinion of the City Attorney, may act in
their behalf.
May 23, 2016
Date President
ATTEST:
Secretary
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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DRAFT
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CONTRACT
FOR
PRIVATE DEVELOPMENT
By and Between
ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER,
MINNESOTA
and
BROOKLYN CENTER HOTEL GROUP,LLC
This document drafted by:
KENNEDY&GRAVEN, CHARTERED
470 U.S.Bank Plaza
200 South Sixth Street
Minneapolis,MN 55402
(612) 337-9300
477799v7 TJG BR305-111
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TABLE OF CONTENTS
PAGE
PREAMBLE.................................................................................................................................................l
ARTICLE
Definitions
Gectkoul.l. Definitions..........................................................................................................................l
Section1.2. Exhibits ..............................................................................................................................J
Section 1.3. Rules of Interpretation —..--.......~~......~...---...—..........--.—....J
ARTICLE 11
WarrantiesRppresentations and
Section 2.l. Representations by the EDA.............................................................................................3
Section 2.2. Representations and Wuouutieehythe Developer---.---.~~---------.,3
ARTICLE III
Sale of Propefty; Option Ageement
Section 3.l. Purchase nfProperty byBuilder.......................................................................................4
Section 3.2. Title and Examination.......................................................................................................4
Section 3.3. Taxes and Special Assessments......—~.—................--........._—o
Section 3.4. Soil Conditions and Hazardous Wastes—.--.—.—..--..---_--..--~—.-5
Section 3.5. Site Clearance and Subdivision........................................................................................5
Section 3.6. Other Preconditions toClosing.—........—.......~....—.~.......—..—.....5
Section 3.7. Closing-------------^-----.---------------~------.o
Section3.8. Closing Costs......................................................................................................................5
Section3.9. Sewer and Water................................................................................................................5
SectionIl0. l8T8Disclosure............................................................ ....................................................5
Section3.11. Well Disclosure........................................................................... ......................................6
ARTICLE IV
Construction of Minimum ILuprovements
Section 4. Construction nfMinimum Improvements-------.--.—.---------~—..6
Section4.2. Construction Plans.............................................................................................................6
Section 4.3. Commencement and Completion ofConstruction.........................................................h
Section 4.4. Certificate nfCompletion and Release nfForfeiture.......................................................b
ARTICLE V
Business Subsidy Act Requirements
Section ll. Business Subsidy Agreement—.--.—.---.--~.---~.-----.------.7
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4777990 rJoon3o5-m � ,
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ARTICLE VI
Events of Default
Section 6.1. Events ofDefault Defined.................................................................................................0
Section6.2. Remedies ouDefault.........................................................................................................9
Section 6.3. Revesting Interest inthe EDA Upon Happening of Event ofDefault
Subsequent toConveyance toDeveloper......................................................................{O
Section 6.4. N)Remedy Exclusive...................................... ..............................................................ll
Section 6.5. No Additional Waiver Implied bvOne Waiver............................................................ll
ARTIC[BVIT
Additional Provisions
Section 7.l. Conflict of Interests;Representatives Not Individually Liable ...................................I I
Section7.2. Restrictions uoUse..........................................................................................................Il
Section 7.3. Provisions Not Merged With Deed................................................................................|2
Section 7.4. Notices and Demands......................................................................................................l2
Section7.5. Counterparts.....................................................................................................................l2
Section 7.6. Disclaimer of Relationships............................................................................................l2
.......................................................................................................................................l3
SIGNATURES
........—.._.........—...—........._.—.—.—.---.-------.--l3-l5
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EXHIBIT LEGAL DESCRIPTION(JF PROPERTY
EXHIBIT FORM OFOPIT0N AGREEMENT
EXHIBIT LIST OF PRELIN41NARY PLAN DOCUMENTS
EXHIBIT FORM OFCERTIFICATE OFCOMPLETION AND RELEASE OF
FORFEITURE
EXHIBIT SKETCH 0FDEVELOPMENT PROPERTY
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1777990TJonx305ll|
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CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made this day of , 2016, by and between the
Brooklyn Center Economic Development Authority [ECONOMIC DEVELOPMENT
AUTHORITY OF BROOKLYN CENTER, MINNESOTA], a public corporation under the laws
of Minnesota (the "EDA), and Brooklyn Center Hotel Group, LLC, a limited liability company
under the laws of Minnesota(the"Developer").
WITNESSETH:
WHEREAS, EDA is the fee owner of certain land legally described on Exhibit A attached
hereto(the"Property"); and
WHEREAS, the Developer desires to purchase the Property and construct improvements
(the"Minimum Improvements")thereon; and
WHEREAS, the EDA believes that the sale and development of the Property and the
fulfillment generally of this Agreement are in the vital and best interests of Brooklyn Center and the
health,safety,morals, and welfare of its residents.
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NOW, THEREFORE, in consideration of the covenants and the mutual obligations
contained herein, the EDA, the City and the Developer hereby covenant and agree with each other
as follows:
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement the following terms shall have the meanings
given unless a different meaning clearly appears from the context:
"Agreement" means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"Business Subsidy Act" means Minnesota Statutes, sections 116J.993 through 116199, as
amended.
"Certificate of Completion and Release of Forfeiture" means a certificate in the form
attached hereto as Exhibit D by which the EDA acknowledges that the Developer has met its
obligations regarding construction of the Minimum Improvements.
"City" means the city of Brooklyn Center, a municipal corporation under the laws of
Minnesota.
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4777990 TJG BR305-111
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"Compliance Date"means , 20_
"Construction Plans"means the final plans for construction of the Minimum Improvements
to be submitted by the Developer and approved by the EDA and by the City.
"County"means Hennepin County,Minnesota.
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"Developer" means Brooklyn Center Hotel Group, LLC, a limited liability company under
the laws of Minnesota.
"EDA"means the Brooklyn Center Economic Development Authority.
"Event of Default"means an action by the Developer or the EDA listed in Article VI of this
Agreement.
"Minimum Improvements" means a hotel facility containing at least 82 rooms with 85
parking stalls constricted in accordance with the Constriction Plans and the Planned Unit
Development, including amendments, adopted for the Property. After completion of the Minimum
Irnprovements,the term shall mean the Property as unproved by the Minimum Irnprovements.
"Preliminary Plans" means, collectively, the plans, drawings and specifications for the
construction of the Minimum Improvements that are listed on Exhibit B attached hereto.
"Property" means the real property upon which the Minimum Improvements will be
constructed, which property is legally described in Exhibit A attached hereto.
"State"means the state of Minnesota.
"Substantial Completion" means completion of the Minimum Irnprovements to the degree
allowing issuance of a certificate of occupancy by the City's building official,
"Unavoidable Delays" means delays that are the direct result of unanticipated adverse
weather conditions; strikes or other labor troubles; fire or other casualty to the Minimum
Improvements; litigation commenced by third parties that, by injunction or other similar judicial
action, directly results in delays; or, except those of the City or the EDA reasonably contemplated
by this Agreement, any acts or omissions of any federal, State or local governmental unit that
directly result in delays in construction of the Minimum Improvements.
Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part
of this Agreement:
Exhibit A. Legal description of the Property
Exhibit B. List of Preliminary Plan Documents
Exhibit C. Form of Certificate of Completion and Release of Forfeiture
Exhibit D. Sketch of Property
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477799v7 TJG BR305-111
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Exhibit E. Form of Property Deed
Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance
with and governed by the laws of Minnesota.
(b) The words "herein" and"hereof' and words of similar import, without reference to
any particular section or subdivision, refer to this Agreement as a whole rather than any particular
section or subdivision hereof.
t
(c) References herein to any particular section or subdivision hereof are to the section or
subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
ARTICLE H
Representations and Warranties
Section 2.1. Representations by the EDA. The EDA makes the following representations as
the basis for the undertakings on its part herein contained:
(a) The EDA is a public body, corporate and politic under the laws of Minnesota. The
EDA has the power to enter into this Agreement and carry out its obligations hereunder.
(b) The persons executing this Agreement and related agreements and documents on
behalf of the EDA have the authority to do so and to bind the City by their actions.
Section 2.2. Representations and Warranties by the Developer. The Developer makes the
following representations as the basis for the undertakings on its part herein contained:
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(a) The Developer is a corporation, duly organized and in good standing under the laws
of Minnesota and is not in violation of any provisions of its articles of organization or by-laws. The
Developer has the power to enter into this Agreement and carry out its obligations hereunder. The
c ments on behalf of the
t and related a • u
persons executing this Agreement agreements and do
Developer have the authority to do so and to bind the Developer by their actions.
(b) Following conveyance of the Property to the Developer, the Developer will
constrict, operate and maintain the Minimum Irnprovements on the Property in substantial
accordance with the terms of this Agreement, the Construction Plans and all local, State and federal
laws and regulations, including,but not limited to, environmental,zoning,building code and public
health laws and regulations.
(c) The Developer will apply for and use its best efforts to obtain, in a timely manner,
all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of
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477799v7 TJG BR305-111
all applicable local, State and federal laws and regulations that must be obtained or met before the
Minimum Improvements maybe lawfully constricted or used for their intended purpose.
(d) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, liunited by or conflicts with or results in a breach of, the
terms, conditions or provisions or any restriction or any evidence of indebtedness, agreement or
instrument of whatever nature to which the Developer is now a party or by which it is bound, or
constitutes a default under any of the foregoing.
ARTICLE III
Sale of Property
Section 3.1. Purchase of Property by Builder. The EDA agrees to sell the Property to
Developer and the Developer agrees to purchase the Property from the EDA in an "as-is"
condition. The EDA agrees to convey the Property to the Developer by Quit Claim Deed in the
general form of Exhibit E. The EDA's deed to the Developer will contain the right of reverter
required in Section 6.3. The purchase price for the Property, payable at Closing, will be One
Hundred Thousand and no/100 Dollars ($100,000) ("Purchase Price").
Section 3.2. Title and Examination. As soon as reasonably possible after execution of
this Contract for Private Development by both parties,
(a) EDA shall surrender any abstract of title and a copy of any owner's title insurance
policy for the property, if in EDA's possession or control, to Developer or to Developer's C
designated title service provider; and
(b) Within 20 days of execution of this Agreement by both parties, Developer shall
obtain the title evidence determined necessary or desirable by Developer or Developer's lender,
including but not limited to title searches, title examinations, abstracting, a title insurance
commitment or an attorney's title opinion, at Developer's selection and cost, and provide a copy
to the EDA.
The Developer shall have 20 days fi•om the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The EDA shall have 20 days from the date of such objection to effect a cure; provided, however,
that the EDA shall have no obligation to cure any objections, and may inform Developer of such.
The Developer may then elect to close notwithstanding the uncured objections or declare this
Agreement null and void, and the parties will thereby be released from any further obligation
hereunder.
Section 3.3. Taxes and Special Assessments. Real estate taxes will be prorated between
the EDA and Developer as of the date of closing. The EDA will pay all special assessments
levied prior to the date of closing.
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4777990 T7G BR305-11 I
RESOLUTION APPROVING A CONTRACT FOR
PRIVATE DEVELOPMENT (BROOKLYN CENTER
HOTEL GROUP, LLC, EMBASSY SUITES PHASE II)
EDA Meeting
May 23, 2016
Agenda Item
No. 4.b
Location Map
2006 Aerial Map
6300 Earle Brown Dr.
Embassy Suites
6150 Summit Dr.
Earle Brown Center
6160 Earle Brown Dr.
Wings Financial
EDA Parcel
Lot 2, Block 1, Brooklyn
Farm 2nd Addition
(Phase II Embassy PUD)
Location Map
2012 Aerial Map
2015
Background
•June 2005 - City Council approves rezoning 6.2 acre parcel from
C1A to PUD/C1A for development of 250-room hotel; 100-seat
restaurant; 32,000 sf. water park facility.
•2006 - Development agreement and 10 year tax abatement plan
•May 2007 - PUD plans revised by City Council to provide for
phased development of two hotels:
•Phase I = eight story, 175 room Embassy Suites Hotel on a 4.02
acre lot; 100 seat restaurant; connection to the Earle Brown
Heritage Center.
•Phase II = conceptual location of a second hotel; agreement
identified a number of national well-known hotel groups
(accepted by EDA); no less than 75 rooms; full service hotel.
2007 PUD Development Plan
Background
•2007 - City approves Final Plat of Brooklyn Farm 2nd Addition – creating 4.02 acre lot for the Embassy Hotel project & 2.18 acre lot for the Phase II site.
•Late 2007 - project under construction; completed early 2009
•2009 - developer completes Embassy Suite Hotel; informs EDA he is unable to complete the link to the Earle Brown Heritage Center
•2010 - Negotiations led to 4th Amendment & Certain Related Agreements (Res. 2010-14):
i. developer’s forfeiture of any rights to the Phase II development;
ii. confirmed the D-Barn Lease Agreement and easements for the EDA’s construction of the link;
iii. approved adjustments to the payment of tax abatements for the Phase I development, including the right of set off to secure the D-Barn Lease and Link Maintenance Agreement; and
iv. conveyed the development rights for Phase II to the EDA and the obligation to construct the link to the Earle Brown Heritage Center.
•2011 - EDA completed the link to Earle Brown Heritage Center.
Background Continued:
May 13, 2013, the EDA adopted Resolution No. 2013 – 03, A Resolution
Accepting Minnesota Hospitality Inc.’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). The
resolution authorized the following actions:
1.The Executive Director execution of the Letter of Intent with Minnesota
Hospitality Inc. for the development of a 4 story 81 room extend stay
hotel, consistent with the conceptual development plans of the approved
PUD plans.
2.To proceed with the negotiations for the sales of this site, excluding the
portion of the lot containing the pond and trail, for $500,000, with similar
provisions for a 10 year Tax Abatement Plan, as approved for the initial
Phase II development.
3.To proceed with the preparation of a development agreement with terms,
conditions, and actions necessary for the conveyance and development
of Lot 2, Block 1, Brooklyn Farms 2nd Addition.
July 8, 2013, the City Council adopted Resolution No. 2013-73, a resolution
accepting the Planning Commission’s recommendation pertaining to the EDA’s
application to amend the conceptual development plans of the PUD to facilitate
a reorientation of the building and parking lot for an 81 unit hotel.
On March 28, 2016, the Economic Development Authority adopted Resolution No. 2016-09, a Resolution 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). The resolution authorized the following actions:
•The Executive Director execution of the Letter of Intent with Minnesota Hospitality Inc. for the development of a 4 story 83 room Marriott Fairfield Inn & Suites consistent with the conceptual development plans of the approved with the 2013 PUD amendment.
•To proceed with the negotiations for the sales of this site, excluding the portion of the lot containing the pond and trail, for $100,000, without provisions for a 10 year Tax Abatement Plan, as initially approved in 2007 for the Phase I and II development.
•To proceed with the preparation of a development agreement with terms, conditions, and actions necessary for the conveyance and development of Lot 2, Block 1, Brooklyn Farms 2nd Addition.
Contract for Private Development for a
Marriot Fairfield Inn & Suites.
Major components of the Contract for Private Development:
•The minimum improvements are identified as a hotel facility containing at least 82 rooms with 85 parking stalls constructed in accordance with the Construction Plans as approved by the EDA and City and the 2007 Planned Unit Development conditions, including the 2013 PUD amendments, adopted for the Property.
•The purchase price has been established at $100,000 for the building site of the minimum improvements. The EDA will continue to own the eastern portion of the lot which includes the pond and trail.
•The contract identifies the following schedule:
•Within 30 days of the execution of the contract the developer shall submit dated construction plans to the EDA.
•The closing date is identified as August 1, 2016 or such other date as may be agreed to the Developer and EDA in writing.
•The construction schedule includes commencement no later than October 1, 2016 and completion no later than October 1, 2017.
•The development does require compliance with the Business Subsidy Act
•Section VI, Events of Default, defines defaults by either party, remedies on defaults, and includes the revesting interest in the EDA upon happenings of event of default subsequent to conveyance to the Developer.
Meeting schedule for an August 1st
closing:
•May 23rd approval of the Development Contract.
•June 14th site plan submittal for the July 14th Planning
Commission
•July 14th Planning Commission Review &
Recommendation
•July 25th City Council Site Plan Approval and Public
Hearing on Business Subsidy
•July 25th EDA Public Hearing on the sales of land
Budget Issues:
The EDA has a fund balance of approximately $1,000,000
and is in a financial position that does not necessitate the
reimbursement of the funds previously used to complete
the link connecting the Embassy Suites Hotel to the Earle
Brown Heritage Conference Center.
The development of a Marriot Fairfield Hotel at this site will
complement the marketing efforts by the Earle Brown
Heritage Center for conferences and receptions.
Recommendation:
It is recommended that the Economic Development
Authority consider approval/adoption of Resolution
Approving a Contract for Private Development (Brooklyn
Center Hotel Group, LLC, Embassy Suites Phase II).