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HomeMy WebLinkAbout2016 07-25 EDAPEDA MEETING City of Brooklyn Center July 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. June 27, 2016— Regular Session 4.Commission Consideration Items a. Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5357 Emerson Ave. North) 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 JUNE 27, 2016 CITY HALL - COUNCIL CHAMBERS 1.CALL TO ORDER The Brooklyn Center Edonomic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 8:31 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, 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 Graves moved and Commissioner Ryan seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. June 13, 2016—Regular Session Motion passed unanimously. 4.COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2016-17 AMENDING AND SUPPLEMENTING RESOLUTION NO. 2016-04; APPROVING A DEVELOPMENT AGREEMENT (SANCUTARY AT BROOKLYN CENTER PROJECT) Executive Director Curt Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. Director of Business and Development Gary Eitel provided a presentation on the background and information on this item. 06/27/16 -1- DRAFT Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2016-17 Approving Amending and Supplementing Resolution No. 2016- 04; Approving a Development Agreement (Sanctuary at Brooklyn Center Project). Motion passed unanimously. 5. ADJOURNMENT Commissioner Lawrence-Anderson moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 8:41 p.m. Motion passed unanimously. 06/27/16 -2- DRAFT EPA Agenda Item No. 3b EDA ITEM MEMORANDUM DATE: July 25, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5357 Emerson Ave. North). Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of a Resolution Authorizing the Acquisition of Property in Connection with the Remove and Rebuild Program (5357 Emerson Ave. North). Background: The City has been approached by Hille Kersten, Attorney in Fact for Jurgen Havemann regarding the EDA's interest in acquiring 5357 Emerson Ave. North, a corner lot in the southwest quadrant of Emerson Ave. N. and 50 ' Ave. North. The property is a narrow corner lot with a lot area of 5,633 sf., with 43.81 feet of frontage on Emerson Ave. N. and 128.2 feet of lot frontage/depth along 54th Ave. N. The City's records indicate that the property was developed in 1905 and a portion of building was built with a commercial store front and used as a corner neighborhood store. The property is vacant, with Mr. Havemann now living in a nursing home. The EDA can acquire this property in an as-is-condition for the amount of $60,000. Attached are photographs of the property and the adjacent vacant lot, 5355 Emerson Avenue North. 5355 Emerson Avenue North is also a narrow lot having a lot width of 40 feet. The residential structures on this lot were removed in 2015 after the City Council adopted Resolution No, 2014- 162, which ordered the correction of hazardous conditions and abatement of public nuisances, safety and health hazards at this location. This property owner is deceased and the City Attorney is investigating the potential of the EDA also acquiring this lot. The combination of this lot with 5357 Emerson Avenue North would create a new buildable lot for a single family residence which would meet the minimum requirement for a corner lot within the R-2 Residential District: Lot Area 8,750 sf. Lot Width 75 feet Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust EDA ITEM MEMORANDUM Purchase Agreement: The enclosed purchase agreement has been prepared by the City Attorney and includes the following provisions: - A purchase price of $60,000; - The closing is scheduled to occur within 60 days after the execution of the purchase agreement; - There are no real estate commission fees involved in this transaction; - The seller is responsible for any deferred or delinquent real estate taxes or utilities; - The Seller is responsible for all pending and levied special assessments, including delinquent utility fees, nuisance abatement fees, and administrative citation fees; - The real estate taxes allocable to the Premises that are due and payable in the year of the closing shall be prorated between the Seller and Buyer to the closing date. The funding source for this property is proposed to be the Housing Fund of Tax Increment District # 3. Tax Increment Finance District No. 3: Tax Increment Finance (TIF) District No. 3 was created in 1994 as a Redevelopment District to provide assistance to various commercial redevelopment and housing development projects within the District. The housing objectives included the following: 1.To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and 2.To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly. The special state legislation associated with the creation of this Tax Increment District included provisions that 15% of the revenues generated from tax increment in any year is deposited in the housing development account of the authority and expended according to the Tax Increment Financing Plan. On January 12, 2009, the EDA adopted Resolution No. 2009-02, "A Resolution Establishing Housing Programs and Approving the Use of Funds from the Tax Increment District No. 3 Housing Account" which authorized the following: e The creation of the Renew Loan and Renew Grant programs. • The creation of the Remove and Rebuild program. • The initial budgets for the Renew Loan and Renew Grant Program and Remove and Rebuild Program. • The use of the Greater Metropolitan Housing Corporation to administer the programs. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the qua1i' of life for (11/people and preserves the public trust I M 7UU I DI'A L I ak"A (1) 1I 1ik'iI Remove and Rebuild Program: The program was created to remove blighted, distressed, and unmarketable properties and to return these properties to an enhanced and compatible use with the neighborhood and consistent with zoning regulations and the City's Comprehensive Plan. Additionally, the program recognized that if an appropriate use for the land is not imminent, the property will be land banked until such time an appropriate use becomes available. Redevelopment activities that have occurred as result of this program includes the construction of new single family homes at 5331 Morgan, 5400 Bryant, 5338 Logan, 5800 Bryant, 5919 Xerexes, 5905 Camden, and 5649 Brooklyn Boulevard. Budget Issues: The acquisition and the demolition costs of this property are eligible TIF-3 Housing expenditures. Strategic Priorities: Targeted Redevelopment !Iissioi,: Ensuring an attractive, clean, safe, inclusive community 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 AUTHORIZING THE ACQUISITION OF PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5357 Emerson Avenue North) WHEREAS, Tax Increment Finance (TIF) District No. 3 was created in 1994 as a Redevelopment District to provide assistance to various commercial redevelopment and housing development projects within the District. The housing objectives included the following: • To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and • To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly; and WHEREAS, On January 12, 2009, the EDA adopted Resolution No. 2009-02, "A Resolution Establishing Housing Programs and Approving the Use of Funds from the Tax Increment District No. 3 Housing Account" which authorized the following: • The creation of the Renew Loan and Renew Grant programs. • The creation of the Remove and Rebuild program. • The initial budgets for the Renew Loan and Renew Grant Program and Remove and Rebuild Program. • The use of the Greater Metropolitan Housing Corporation to administer the programs; and WHEREAS, the Remove & Rebuild Program was created to remove blighted, distressed, and unmarketable properties and to return these properties to an enhanced and compatible use with the neighborhood and consistent with zoning regulations and the City's Comprehensive Plan; and WHEREAS, the real property located at 5357 Emerson Avenue North, (the "Subject Property") is a voluntary sale of a vacant single family residence for the amount of $60,000; and WHEREAS, the EDA has determined acquisition of the Subject Property is consistent with the goals and objectives of the Tax Increment District No. 3 Housing Program and is in the best interest of the City of Brooklyn Center and its citizens. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota, as follows: EDA RESOLUTION NO. 1.The purchase agreement for the Subject Property is hereby approved. 2.The President and Executive Director of the EDA are authorized and directed to execute the purchase agreement, and the Executive Director is authorized and directed to take all such further steps as are necessary to effect the terms thereof. July 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. Hennepin County Property Map Date: 7/19/2016 r'4 N-1 4 c\ __ c TI 0- L!F' LW ., I 1 inch = 50 feet PARCEL ID: 0111821330110 Comments: OWNER NAME: Jurgen Havemann PARCEL ADDRESS: 5357 Emerson Ave N, Brooklyn Center MN 55430 PARCEL AREA: 0.13 acres, 5,633 sq ft A-T-B: Abstract SALE PRICE: SALE DATA: This data (i) is furnished \S IS with noSALE CODE. representation as to completeness or accuracy; (ii) is furnished with no ASSESSED 2015 PAYABLE 2 6 warranty of any kind; and (iii) is notsuifuble I , I U I for legal, engineering or surveying purposes. PROPERTY TYPE: Residential Hennepin county shall not be liable for any HOMESTEAD: Homestead damage, injury or loss resulfing from this data. MARKET VALUE: $110,200 TAX TOTAL $1,677.16 COPYRIGHT ©HENNEFIN COUNTY 2016 ASSESSED 2016, PAYABLE 2017 PROPERTY TYPE: Residential HOMESTEAD: Homestead fl A A Ii 7 I- T IA I I I r. (11 4 A 'i n flfl - L[. . ' N-f r\IJ J-i Y - II P L 41 1 -S I I k. ( PURCHASE AGREEMENT 1.PARTIES. This Purchase Agreement ("Purchase Agreement") is entered into this day of , 2016, by and between Hille Kersten, Attorney in Fact for Jurgen Havemann a single person ("Seller") and the Economic Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of Minnesota ("Buyer"). 2.SALE OF PROPERTY. Seller is the owner of that certain real estate ("Property") located at 5357 Emerson Avenue North, Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as follows: Lot 1, Block 3, N. & E. Perkins Addition to Minneapolis. [Abstract] 3.OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained, Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase the Property and all improvements and fixtures thereon, together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass. 4.NO PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal property or fixtures owned by Seller and currently located on the Property included in the Purchase Price for purposes of this sale. Wi I1 :r.ii ai 901 EI 1N1 ai 9k'A Fic A. PURCHASE PRICE: The total Purchase Price ("Purchase Price") for the Property is Sixty Thousand and No/lOOths Dollars ($60,000.00). Ii (1)EARNEST MONEY. The sum of Zero Dollars ($0.00) Earnest Money ("Earnest Money") shall be paid by the Buyer to the Seller, the receipt of which is hereby acknowledged. (2)BALANCE DUE SELLER: Buyer agrees to pay by check or wire transfer on the Closing Date ("Closing") any remaining Balance Due according to the terms of this Agreement. (3) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: 482917v1 CBR BR305-141 1 a.Building and zoning laws, ordinances, state and federal regulations. b.Reservation of minerals or mineral rights to the State of Minnesota, if any. C. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. d. Title defects waived by Buyer pursuant to paragraph 12 below. J]Oi,JkIUltIi p sj A 041N A.Warranty Deed free and clear of encumbrances subject only to the exceptions stated in SB (3a, 3b, 3c and 3d). B.Standard form Affidavit of Seller. C. Well disclosure certificate, if required. E. Such other documents as may be reasonably required by Buyer's title examiner or title insurance company. 7.CLOSING DATE. The closing of the sale of the Property shall take place within 60 days after the date of this Agreement ("Closing") or at an earlier date as mutually agreed by the parties. The closing shall take place at the offices of Economic Development Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. 8.ENVIRONMENTAL INSPECTION. Seller, prior to vacation of the Property, shall remove all substances that, under state or federal law, must be disposed of at an approved disposal facility. This requirement does not apply to hazardous substances integrated into the building improvements (e.g., asbestos) or soil but applies only to movable equipment, supplies and materials that are located or stored on the Property. Buyer and Seller will conduct a joint inspection of the Property at a time to be mutually agreed upon prior to Closing for the purpose of identifying materials that must be removed by Seller. 9.LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead paint disclosure accompanies this Agreement. 10.REAL ESTATE TAXES. A. Seller will pay at or prior to Closing all real estate taxes due and payable in 2015 and prior years on the Property, including any delinquent real estate taxes. 482917v1 CBRBR305-141 2 B. Real estate taxes due and payable in 2016 shall be prorated as of Closing between Buyer and Seller. If the amount of real estate taxes due and payable in 2016 are not available on the date of closing, the pro-rated taxes will be based on the amount of real estate taxes due and payable in 2015. 11. SPECIAL ASSESSMENTS. A.Seller shall pay on or prior to Closing the balance of all special assessments levied or pending. B.Seller shall pay any deferred real estate taxes or special assessments, payment of which is required as a result of the Closing of this sale. C. As of the date of this Agreement, Seller has not received a notice of hearing for a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the Property. If a notice of pending special assessment is issued after the date of this Agreement and on or before Closing, Buyer shall assume payment of all of any such special assessments and Seller shall provide for payment on date of closing of none of any such special assessments. D. Notwithstanding any other provision of this Agreement, Seller shall at all times be responsible to pay special assessments, if any, for delinquent sewer or water bills, removal of diseased trees prior to the date of this Agreement, snow removal, or other current services provided to the Property by the assessing authority while the Seller is in possession of the Property. 12. MARKETABILITY OF TITLE. Buyer shall, at its expense and within a reasonable time after Seller's acceptance of this Agreement, obtain a commitment for title insurance or other evidence satisfactory to Buyer ("Title Evidence") for the Property or examine the abstract of title. Buyer shall have ten (10) business days after receipt of a fully executed purchase agreement and the Title Evidence to examine the same and to deliver written objections to title, if any, to Seller. Seller shall have until the Closing (or such later date as the parties may agree upon) to make title marketable, at the Seller's expense. In the event that title to the Property cannot be made marketable or is not made marketable by the Seller by the Closing, then, at the option of the Buyer, this Agreement shall be null and void and all Earnest Money will be returned to Buyer, if any. 13. CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) any deed transfer taxes and conservation fees and recording fees for all instruments required to establish marketable title in Seller; (b) any deed transfer taxes and conservation fees required to enable the Buyer to record its deed from Seller under this Agreement. Buyer shall be responsible for the payment of the following costs: (a) recording fees for deed from Seller under this Agreement (b) the title search, name search and assessment search fees and other fees incurred in preparation of the Commitment for title insurance or other Title Evidence, and title insurance premium, if any; and (c) any closing fee charged by the title insurance or other closing agent, if any, utilized to 482917v1 CBR BR305-141 3 close the transaction contemplated by this Agreement. Each party shall be responsible for its own attorneys' fees and costs. 14.POSSESSION/CONDITION OF PROPERTY. Seller shall deliver possession of the Property to Buyer immediately after Closing. Seller shall remove all personal property from the Property prior to Closing. Any furniture, fixtures, equipment or other personal property remaining at the Property as of Closing shall be deemed the property of Buyer and may be used by Buyer or disposed of by Buyer as Buyer sees fit. Buyer and Seller will conduct a joint inspection of the Property at a time to be mutually agreed upon prior to Closing. 15.DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses that there (is) (is not) an individual sewage treatment system on or serving the Property. If there is an individual sewage treatment system on or serving the Property, Seller discloses that the system (is) (is not) in use. In the event there is a sewage treatment system, a map of said location of the system is attached. iC. viu mu niisi iiiiJt4! []Seller discloses that there is a well on or serving the Property. A well disclosure Certificate accompanies this agreement. Or IZI Seller does not know of a well on the described real Property. 17.SELLER'S WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. Seller warrants that there has been no labor or material furnished to the Property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the Property. Seller has good and marketable simple title interest to the Property and no consents or approvals from any third parties are required. Seller will not enter into a lease after the date of this Agreement. Seller represents that the Property is vacant. Seller agrees to pay all charges for sewer, water, electric, gas, rubbish removal and cable television incurred prior to Closing. These warranties shall survive the Closing of this transaction. 18.RELOCATION BENEFITS. Seller acknowledges that the Seller initiated negotiations with Buyer for the transaction contemplated by this purchase agreement, and that this transaction is not made under threat of condemnation by Buyer. Seller represents that the Property is vacant and unoccupied. Seller agrees to waive any and all relocation benefits, assistance and services to which Seller might otherwise be eligible. Seller agrees to provide to Buyer at Closing an executed waiver of relocation benefits in substantially the form of the attached Exhibit A. 19.NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and warranties contained in this Agreement shall not be merged into any instruments or conveyance delivered at Closing, and the parties shall be bound accordingly. 20.ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire agreement between the parties, and no other agreement prior to this Purchase Agreement or 482917v1 CBR BR305-141 4 contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. Any purported amendment shall not be effective unless it shall be set forth in writing and executed by both parties or their respective successors or assigns. 21.BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller. 22.NOTICE. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, postage prepaid and addressed as follows: SELLER: Hille Kersten Attorney in Fact for Jurgen Havemann 709 Meadow Lane South Golden Valley, MN 55416 BUYER: Economic Development Authority of Brooklyn Center Attn: Gary Eitel 63 01 Shingle Creek Parkway Brooklyn Center, MN 55430-2113 AGENT: Kennedy & Graven, Chartered Attn: Troy Gilchrist 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 23.BROKER COMMISSIONS. Buyer and Seller each represents and warrants to each other that there is no broker involved in this transaction with whom either has negotiated or to whom the representing party has agreed to pay a broker commission or finder's fee in connection with negotiations for purchase or sale of the Property. 24.SPECIFIC PERFORMANCE. This Agreement may be specifically enforced by the parties, provided that any action for specific enforcement is brought within six months after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach of this agreement; the parties reserve all other remedies available at law or in equity. 482917v1 CBR BR305-141 IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above. a mm a i By Hille Kersten, Attorney in Fact for Jurgen Havemann Economic Development Authority of Brooklyn Center, Minnesota By: Its: Prpczdpiit By: Its: Executive Director 4829170 CBR BR305-141 6 EXHIBIT A WAIVER OF RELOCATION BENEFITS I, the undersigned, acknowledge that I met with a representative of the Economic Development Authority of Brooklyn Center, Minnesota (EDA) on , 20_. The representative, explained that in the event that the FDA acquires my residence located at 5357 Emerson Avenue North, Brooklyn Center, Minnesota, I may be entitled to certain relocation benefits, in addition to the amount of money being paid to me to acquire my residence. These benefits may include: Moving Expenses: a.A payment for actual reasonable moving expenses; or b.A fixed payment determined in accordance with the applicable schedule approved by the Federal Highway Administration. 2. Replacement Housing Payment: A 180-day homeowner is eligible to receive a replacement housing payment to cover the following costs: a.If homeowner must pay more to buy a comparable replacement home than homeowner receives for the property, then homeowner may be compensated for the difference. b.Homeowner may be entitled to compensation for incidental and closing expenses related to the purchase of a decent, safe, and sanitary replacement home, such as recording fees, title insurance, appraisal and inspection fees. C. If homeowner must pay a higher interest rate on a mortgage to finance the purchase of a replacement home than the rate on the mortgage of the property, then homeowner may be entitled to compensation for increased mortgage interest costs. 3. Other Relocation Assistance: This includes referrals and other assistance to help the owner(s) relocate to a comparable decent, safe and sanitary dwelling. These payments and services are required under the regulations of the Department of Housing and Urban Development (HUD). The owner(s) cannot be required to move from his/her home unless he/she is given reasonable opportunities to relocate to a comparable decent, safe and sanitary dwelling unit that he/she can afford. Finally, it was explained to me that the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended, entitles me to these relocation benefits; and if I sign this agreement, I will be waiving those relocation benefits. After having these benefits explained to me, I agree to waive them. In signing this agreement, I acknowledge that no threats have been made to me, either expressly or by implication; and that the property will not be taken from me through condemnation. If after signing this agreement, I attempt to collect relocation benefits, I will have to prove that, contrary to what I am agreeing to in this agreement, my waiver of relocation benefits was not entered into voluntarily. This agreement is conditioned upon the Economic 4829170 CBRBR3O5-141 7 Development Authority of Brooklyn Center, Minnesota purchasing my property for the gross purchase price of $60,000.00. If this commitment to me is not fulfilled, the agreement is null and void. Date Hille Kersten, Attorney in Fact for Jurgen Havemann, Seller WITNESS: 482917v1 CBR BR305-141 8 Well Disclosure Certificate 482917v1 CBRBR305-141