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HomeMy WebLinkAbout2016 12-12 EDAPEDA Agenda EDA MEETING City of Brooklyn Center December 12, 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. November 28, 2016 — Regular Session 4. Commission Consideration Items a. Resolution Authorizing a 60 Day Exclusive Negotiating Period with CGG Holdings Regarding the Development of 32 Acres within the Opportunity Site 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 NOVEMBER 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 9:11 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 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 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. November 14, 2016 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2016-25 AUTHORIZING THE PREPAYMENT OF THE AMENDED AND RESTATED TAX INCREMENT REVENUE NOTE (SHINGLE CREEK CROSSING) AND A PORTION OF THE EDA'S INTERNAL LOAN FROM THE TIF DISTRICT NO.2 ACCOUNT Mr. Boganey provided background on this item and noted this is a housekeeping item. Commissioner Graves moved and Commissioner Myszkowski seconded to adopt RESOLUTION NO. 2016-25 Authorizing the Prepayment of the Amended and Restated Tax 11/28/16 -1- DRAFT Increment Revenue Note (Shingle Creek Crossing Project) and a portion of the EDA's Internal Loan from the TIF District No. 2 Account. Motion passed unanimously. 5. ADJOURNMENT Commissioner Ryan moved and Commissioner Graves seconded adjournment of the Economic Development Authority meeting at 9:13 p.m. Motion passed unanimously. 11/28/16 -2- DRAFT EDA Agenda Item No_ 4a EDA ITEM MEMORANDiJM DATE: December 12, 2016 TO: Curt Boganey, City Manag�i� FROM: rt�� cp Gary Eitel, Director of Business 8c Development 1�C� SUBJECT: Resolution Authorizing a 60 Day Exclusive Negotiating Period with CGG Holdings Regazding the Development of 32 acres within the Opportunity Site. Recommendations It is recommended that the Economic Development Authority consider approval/adoption of Resolution Authorizing a 60 Day Exclusive Negotiating Period with CGG Holdings Regarding the Development of 32 acres within the Opportunity Site Background: On November 28, 2016, the City Council/EDA Work Session included a discussion on proceeding with an alternate development concept and vision proposed by CGG Holdings for a market rate apartanent development within the Southern Portion of the Opportunity Site. The development concept proposed by CGG Holdings included the following components: • 425-475 market rate apartment units with 425-575 underground parking stalls with 230 surface parking stalls; • 200 senior aparlrnent units with 200 underground parking stalls and 80 surface parking stalls; • 60 townhomes with terraced courtyards and 120 underground parking stalls • 37,000 square foot Community Arts Center and 6,000 square foot retail building (restaurant brew house) with 290 surface parking stalls; • Green areas for community park/event spaces, common areas, dog park, and a perimeter green area 8c trail with connections to the Regional Trail System. CGG Holdings requested a 60 day period to negotiate a working partnership with the City £or the 2017constnretion of the first phase of 200 apartment units and a Tax Increment Pay -As -You -Go Note to bridge the £anancial gap for the private improvement. The consensus of the City Council was a favorable response to the following policy issues: Does the Conceptual Development Plan provided by CGG Holdings meet the EDA's vision For the residential redevelopment of the southern portion of the Opportunity Site? Does the EDA wish to proceed with a 60 day exclusive negotiating period with CGG Holdings to negotiate the details of a phased development agreement and tax increment assistance plan? Attached for your reference is a copy of the November 28, 2016 staff memorandum. M/ss/on: ErrsuHng for nf/rrtc/lvc, clean, sem, Arcbrsivr cornnarutlry� n rs/ eubn»crs flee Run/lty of/� for u//Peopir mM preserves Oez Public nxrs/ Planning and Development Strategies for the Redevelopment of the Opportunity Site: In 2015 -2016, the EDA completed the following studies, site preparation, and financial planning associated conceptual development of 7 apartment buildings with 749 market rate apartment and a 50,000 sf. performing arts building on the southern 32 acres of the Opportunity Site: - Transportation study, municipal water study, and sanitary sewer study which determined there is sufficient capacity for this redevelopment within the existing systems; - The demolition of Brookdale Square Strip Mall, Brookdale 8 Theater, former Cinema I,II,III (Miracle Empowerment Center) , the foundations and soil corrections on the former Brookdale Ford Site; - The process for the creation of a Redevelopment Tax Increment Financing District for the Southern portion of the Opportunity Site; - Preliminary Plans by Solution Blue with Public and Private cost estimates of $6.9 M and $3.7 M respectively; - Springsted's financial analysis of the tax increment revenue stream from a 1St phase development of 200 units would support $6.3 M of public and private improvements. - An alternative public street layout and storm water management concept by Loucks & Associates with estimated public infrastructure and site preparation costs of $2.4 M. The processing of a PUD rezoning application, subdivision applications, site plan review, and an Environmental Assessment Worksheet (multi -family projects exceeding 300 units) will commence upon a determination that a project is financial feasible. CGG Holdings and Brooklyn Center Sixty Day Negotiating Period. The negotiating of a working partnership between CGG Holdings and the City will focus on financial strategies and potential development options that will address use of a Tax Increment Bond to fund the necessary public infrastructure costs, the use of a Tax Increment Pay -As -You - Go Note to bridge the financial gap in private financing of the 2017 construction of 200 units; a projected development schedule for subsequent phases; and financial strategies that will enable the development of future phases and the Community Arts Center. The plan is to complete these tasks and report on the financial feasibility of this project at the February 13, 2017 EDA Meeting. Additional Redevelopment Interest in the Opportunity Site. In addition to the continued interest by Sand Development, the City has received the following development interest in partnering with the EDA in the redevelopment of the Opportunity Site: Gary Brummer, Brummer Properties and Walker Methodist Senior Living Community. (Attached is a letter of interest by Gary Brummer, email from the CEO/President of Walker Methodist and 3 development concepts presented to staff on December 1, 2016. Mission: Ensuring an attractive, clean, safe, inclusive connnunity that enhances the quality of life for all people mrd preserves the public trust - a� �. �h �l u- `��7l►ll llh ® Pulte Group is scheduled to meet with staff on December 8, 2016 to discuss the option of a Mid -Density Townhome Development for the southern portion of the Opportunity site. (No additional information was available at the time this report was being prepared) This additional interest in Opportunity Site is viewed as a very positive indication of the market potential of alternative residential options as recognized by a National Builder of Townhomes, an established Senior Community Living provider, and an alternative design for a phased development of market rate apartments by a local developer/owner-operator. Additional information on these interests and potentially others that will assist in achieving the Council's strategic goals for the Opportunity Site will be assembled and provided to the City Council/EDA. Budget Issues: The expenses associated with this phase of the Opportunity Site redevelopment are eligible activities funded by Tax Increment District No. 3. Strategic Priorities: ® Targeted Redevelopment Mission: Ensming an attractive, clean, srfe, 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 A 60 DAY EXCLUSIVE NEGOTIATING PERIOD WITH CGG HOLDINGS REGARDING THE DEVELOPMENT OF 32 ACRES WITHIN THE OPPORTUNITY SITE WHEREAS, on April 27, 2015, the City Council adopted Resolution No. 2015- 74, A Resolution Adopting the 2016 Strategic Priorities and 2016-2018 Strategic Plan, which included Strategic Priorities for Resident Economic Stability, Targeted Redevelopment, Enhanced Community Image, Inclusive Community Engagement, Strengthened and Empowered Youth, and Key Infrastructure Investments; and WHEREAS, the Strategic Priorities for Targeted Redevelopment provided for redeveloping properties to the highest value and best use to accomplish the City's goals regarding housing, job creation, and growth of the City's tax base. Additionally, the City will appropriately prepare sites and provide the necessary supporting infrastructure investments to guide redevelopment of publicly —and —privately owned properties; and WHEREAS, the Strategic Plan for Targeted Redevelopment includes the following Strategic Targets and Initiatives: 1. Completion of Senior Assisted Living Development (Cars with Heart Site) by 2017; 2. Completion of Phase I Mixed Use Residential (Opportunity Site) for 10-15 acres with 250 units; 3. Completion of Phase II (Shingle Creek Crossing Development) through_ working with the developer on strategies using market analysis and incentives; and WHEREAS, on September 14, 2015, the City Council/EDA Work Session included a discussion on a preliminary development agreement (Contract for Exclusive Negotiations with Sand Development LLC) for the development of a market rate apartment and commercial Planned Unit Development within the southern portion of the Opportunity Site; and WHEREAS, on October 12, 2015, the EDA adopted Resolution No. 2015-22, a resolution which authorized the EDA to enter into a Preliminary Development Agreement with Sand Development which set out certain responsibilities related to the preliminary plans, determined the feasibility for redeveloping the Opportunity Site, and authorized the hiring of an engineering consultant (Solution Blue) to conduct the work to be performed by the EDA under the Preliminary Development Agreement; and EDA RESOLUTION NO. WHEREAS, on January 25, 2016, the City Council/EDA Work Session included a review of the Conceptual Master Plan illustrating the conceptual development of the southern 32 acres of the Opportunity Site (Lot 2, Block 2, Brookdale Square, and Lot 1, Block 1, Brookdale Square 2nd Addition) for the phased development of. seven apartment buildings, comprising a total of 746 market rate apartment units; a two -acre commons area with pool and activity building; a 50,000 square foot performing arts center with structure parking providing 160 stalls; and public and private utility and street improvements to serve the development; and WHEREAS, the consensus of the City Council/EDA was that the Conceptual Master Plan provided by Sand Development and Solution Blue met the City's vision for the redevelopment of its 32 acres within the southern portion of the Opportunity Site and satisfactorily addressed the provisions of the Preliminary Development Agreement necessary to proceed with the preparation of a Final Development Agreement; and WHEREAS, on February 8, 2016, the EDA adopted RESOLUTION NO. 2016- 06, which authorized the preparation of a Final Development Agreement with Sand Development to include the following: 1. Duration of the contract. 2. Terms and price of the land acquisition costs. 3. Plans and schedule of site preparation improvements to be completed by the EDA. 4. Plans and schedule for the public improvements to be completed by the EDA. 5. Schedule for the conveyance of buildable lots and the Redeveloper's schedule for construction of the private improvements and residential portion of the planned unit development. 6. Affordability requirements. 7. City review and approval rights (environmental assessment worksheet, residential planned unit development (PUD) platting, and site plans). 8. Other financial assistance that may be required to complete the improvements; and WHEREAS, during the preparation of a Final Development Agreement the following issues and fiscal challenges resulted in a determination that the project, as designed, was not feasible: EDA RESOLUTION NO. 1. The developer was unable to secure financing for the first phase of two apartment buildings comprising 308 units. 2. The public infrastructure costs were estimated at approximately $6.9 million which exceeded the Tax Increment projected for the first phase development. 3. The developer's profoima required up -front TIF assistance of $5 Million through the EDA sales of a G.O. TIF Bond vs. a Pay -As -You -Go Note. WHEREAS, the EDA did not enter into a Final Development Agreement with Sand Development and, since the term of the Preliminary Development Agreement had expired, the EDA was once again open to seek new development proposals for the Opportunity Site from other Developers; and WHEREAS, the EDA retained the engineering consultant services of Loucks & Associates to re-evaluate the storm water management options for the Opportunity Site and review the estimated development costs for public infrastructure which provided an alternative layout and design for storm water management with projected public infrastructure costs in the range of $2.3 Million and have discussions on the City Council's strategic goals and visions for redevelopment within the Opportunity Site; and WHEREAS, Devan George, Partner, CGG Holdings, has expressed an interest in working with the City on the planned residential development of market rate apartment units within the Opportunity Site; and WHEREAS, on November 28, 2016, the City Council/EDA reviewed a conceptual development plan submitted by CGG Holdings which illustrated the following development on the 32 acres within the Opportluiity Site owned by the EDA: 425-475 market rate apartment units with 425-575 underground parking stalls and 230 surface parking stalls; 2. 200 senior apartment units with 200 underground parking stalls and 80 surface parking stalls; 3. 60 townhomes with terraced courtyards and 120 underground parking stalls; 4. 37,000 square foot Community Arts Center and 6,000 square foot retail building (restaurant/brew house) with 290 surface parking stalls; and EDA RESOLUTION NO. 5. Green areas for community park/event spaces, common areas, dog park, and a perimeter green area & trail with connections to the Regional Trail System; and WHEREAS, the consensus of the Council Members was that the conceptual development plans were consistent with their vision for the redevelopment of the Opportunity Site. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of Brooklyn Center, Minnesota as follows: 1. That the EDA agrees to provide CGG Holdings a 60 -day exclusive negotiating period to negotiate a working partnership with the City of Brooklyn Center for the redevelopment of the southern 32 acres within the Opportunity Site (Lot 2, Block 2, Brookdale Square and Lot 1, Block 1, Brookdale Square 2nd Addition) that would include the first phase construction of 200 apartment units in 2017 and the use of a Pay -As -You - Go Note as the fiscal tool to bridge any financial gap for the private improvements. 2. This Exclusive Negotiating Period is in effect through February 13, 2017 and the EDA may enter into negotiations with any other developer after that date if the EDA has not acted by resolution during the Exclusive Negotiating Period enter into, at least preliminarily, a development agreement with CGG Holdings on its development plan for the Opportunity Site from CGG Holdings. December 12 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. c To: Mayor Tim Willson & City Council Members, City of Brooklyn Center Attn: Curt Boganey, City Manager From: Devean George, Partner, CGG Holdings Date: 11/18/16 Re: Master Design Concept — Opportunity Site Mayor Willson and City Council Members, Our firm has completed a master design concept for the 36 -acre Opportunity Site in Brooklyn Center. This design includes the following components: © 425-475 market rate apartment units with 425-575 underground parking stalls and 230 surface parking stalls; ® 200 senior apartment units with 200 underground parking stalls and 80 surface parking stalls; ® 60 townhomes with terraced courtyards and 120 underground parking stalls; © 37,000 square foot Community Arts Center and 6,000 square foot retail building (restaurant/brew house) with 290 surface parking stalls; o Green areas for community park/event spaces, common areas, dog park, and a perimeter green area & trail with connections to the Regional Trail System. We understand that the City Council has a 2016-2018 strategic goal for this site to be developed, and we're excited to partner with the City to achieve that. We also understand that the City has established a tax increment financing district to finance the public street and utility improvements, and that the City recognizes that the use of tax increment funds as a fiscal bridge is necessary to achieve the development of market rate apartments to be built in today's housing market. CGG Holdings would like to negotiate a working partnership with the City of Brooklyn Center that would include the first phase of construction of 200 apartment units, to commence in 2017, and a Pay -As -Go -Note to bridge the financial gap for the private improvements. This time period sets the February 13, 2017 City Council/EDA meeting as the target date for this agreement. Thank you for your consideration. 1161 Wayzata Blvd E #403 1 Wayzata, MN 55391 JOHN MHFTIN ORNE I a_ i 3� i � �' i�l� �� -� � - ■w � ��;�y �� , oY' F K S � < � I 4 i ':� , � �� � �:�ea — i �.. a� z � ' � P�"=. ununnnnm � � n n n��n �..p —. '�� m � � �� ..: '�j�� . 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V- �- a � �� 0lv �� e �� c mac' , 4 ����'�� :,r �` i�l� � - ■w � �_ , �� a CO CO z CO D 0 2 COv z J 0 O 2 O O 0 rn Ute' 16 V5 Im NO N m t- co N N O 0 0 0 w m J 4 J J J Q z U) U) o w F --CD w ¢ ¢ ZZ J Q' C7 0 Z Q ¢ F Z J Q -0 - Lu d W J (D ¢ m Z FQ� CD W H O ¢ 0 0 W F d N W N F Z Y Q a v� W U a }) F W w W 0 U, z W a LU Q O 0 u> z C7 Z J W D W 13- U3 J Q D Cl) m L H X J 0 F- O F W Cl) J J O 0 Cl)�j Z LU z 2 z W CL J c� w < Cl c7 7 N CD LL LO z Y a LU LU O w W O 0 0 W U W F- F-- 0 U O 0 N 0 0 C') O O O O O ON (ADO (O O C O m (m C7 t!7 m ' -o W O V N 5 5 U CD � � ci W � �n C) J Z o Fm-- Fm-- J E 2-1 2-1 Q o 0F-- cr 00~2E� LU �Q¢ t= a F Q Q N ¢ za00 Z Q Z _J Q (.70cl� C� - " Z O 0 0 W 0 F} Ln Q -i F=- OD m W 5) r- N Z ^ cn = O OO O V ) U) / z w N� LL w U) 2 LL � w ; o 0 0 o c LL t - - 06 rT z 6 CO Z) �_ s ok w 0 z w CO f� V _z 0 J m o 0 o c z w �N LL Q w CO 2 0- 16 V5 Im NO N m t- co N N O 0 0 0 w m J 4 J J J Q z U) U) o w F --CD w ¢ ¢ ZZ J Q' C7 0 Z Q ¢ F Z J Q -0 - Lu d W J (D ¢ m Z FQ� CD W H O ¢ 0 0 W F d N W N F Z Y Q a v� W U a }) F W w W 0 U, z W a LU Q O 0 u> z C7 Z J W D W 13- U3 J Q D Cl) m L H X J 0 F- O F W Cl) J J O 0 Cl)�j Z LU z 2 z W CL J c� w < Cl c7 7 N CD LL LO z Y a LU LU O w W O 0 0 W U W F- F-- 0 U O 0 N 0 0 C') MEMORANDUM -COUNCIL WORK SESSION DATE: November 28, 2017 TO: Curt Boganey, City Manage' FROM: Gary Eitel, Director of Business 8c Development ��-- SUBJECT: Review of an alternate development concept and vision proposed by CCG Holdings for a market rate apartment development within the southern portion of the Opportunity Site. Recommendation: It is recommended that the City Council consider providing direction to staff regarding proceeding with an alternate development concept and vision proposed by CCG Holdings for a mazket rate apartment development within the southern portion of the Opportunity Site. Background: On September 14, 2015, the City Counci]/EDA- Work � Session included a discussion on a preliminary development agreement (Contract for Exclusive Negotiations with Sand Development LLC) for the development of a market rate apartment and commercial Planned Unit Development within the southern portion of the Opportunity Site. The majority consensus of the City Council/EDA was to move forward with the development plan. On October 12, 2015, the EDA adopted Resolution No. 2015-22, a Resolution Approving Agreements Related to the Development of the Opportunity Site. On January 25, 2016, the City Council/EDA Work Session included a review of the Conceptual Master Plan illustrating the conceptual development of the southern 32 acres of the Opportunity site for the phased development of seven apartment buildings, comprising a total of 746 market rate apartment units; a two acre commons area with pool @ activity building; a 50,000 sf. performing arts center with structure parking providing 160 stalls; public and private utility and street improvements to serve the development. The consensus of the City Council/EDA was that the Conceptual Master Plan provided by Sand Development and Solution Blue met the City's vision for the redevelopment of its 32 acres within the southern portion o£ the Opporhanity Site and satisfactorily addressed the provisions of the Preliminary Development Agreement necessary to proceed with the ptcparation of a Final Development Agreement. On February 8, 2016, the EDA adopted RESOLUTION NO. 2016-06 Authorizing Preparation of a Final Development Agreement Related to the Development of the Opportunity Site. Attached for your reference is a copy o£ this resolution and the February 8, 2016 staff memorandum. The preparation of the final development agreement with a construction schedule for the first phase to commence in 2016 stalled with the following outstanding issues: .xts:to,,: s„:.na,:s ro. nnrrrcrrve, creme, srl, nmrtsi.-e con.mm.nr nmr enbrcnces me �:.nnq� ft{f jar nhPeopte nntlP•'eserves the public nvmt 1. The developer was unable to secure financing for the first phase of two apartment buildings comprising 308 units. 2. The public infrastructure costs projected at approximately $6.9 million were addressed as a fiscal challenge that could be resolved through a LCDA application for a Metropolitan Council Livable Communities Grant vs. a more cost effective project design alternative. 3. The developer's proforma required up -front TIF assistance of $5 Million through the EDA sales of a G.O. TIF Bond vs. a Pay -As -You -Go Note. The City's financial consultant, Springsted Financial, projected that a first phase of 200 unit apartment units having an assessed valuation of $135,000 per unit could support a TIF Bond of approximately $6.3 Million. To fund a $6.9 Million public infrastructure bond and the developer's requested economic assistance, the first phase needed to capture the tax increment 300 units. A recent FHA preliminary mortgage application Sand Development received a response recommending that the application be limited to 200 units. This fall, the EDA retained Loucks & Assogiates to assess the storm water management options for the Opportunity Site and the development costs for public infrastructure. Their analysis provided an alternative layout and design for storm water management with projected public infrastructure costs in the range of $2.3 Million. 2017 EDA BUDGET- GOALS: Completion of the 1St phased redevelopment of the Southern Portion of the Opportunity Site is a 2016-2018 Strategic Goal established by City Council which has been addressed in the ERA's Budget proposal as follows: During the planning period of 2016 — 2018, the EDA will complete the demolition of the vacant Brookdale Square buildings and the former Brookdale Ford site; complete the master planning of all infrastructure improvements for a multi phased planned unit development; establish a tax increment redevelopment district and financial strategies to enable the completion of all necessary infrastructure improvements; enter into development agreements with a qualified developer for the phased development consistent with the City's vision and master planning of the Opportunity Site. In 2017, the first phase development of approximately 200 market rate apartment units will commence. Throughout 2016, this strategic goal has been a significant component in staff presentations on planning and development activities within the City's Central Commerce District. The message focused on the EDA's commitment for a quality market rate apartment development for this site with an understanding that the EDA was open to considering development options that would promote and strengthen opportunities to achieve its goals. Mission: Ensuring ars attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust Attached is a development option provided by Devean George, partner with CCG Holdings, illustrating a vision for the development of the Opportunity Site that includes both market rate apartments, independent senior living apartments, and townhomes, a future performing arts center and a Brew House — restaurant. CCG Holdings, is requesting a 60 day exclusive negotiating agreement with the EDA (until the February 13, 2017 EDA Meeting) to work out a phased development agreement and tax increment assistance plan with the City of Brooklyn Center. Policy Issues: Does the Conceptual Development Plan provided by CCG Holding meet the EDA's vision for the residential redevelopment of the southern portion of the Opportunity Site? Does the EDA wish to proceed with a 60 day exclusive negotiating period with CCG Holdings to negotiate the details of a phased development agreement and tax increment assistance plan? Strategic Priorities: ® Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the qualify of life for all people and preserves the public trust Commissioner Kris Lawrence-Andersonintroduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2016-06 RESOLUTION AUTHORIZING PREPARATION OF A FINAL DEVELOPMENT AGREEMENT RELATED TO THE DEVELOPMENT OF THE OPPORTUNITY SITE WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota ("EDA") is working, in accordance with the strategic plan for the City of Brooklyn Center, to redevelop the former Brookdale Square and Brookdale Ford sites, which are now owned by the EDA (the "Opportunity Site"); and WHEREAS, the EDA is overseeing the development of the Opportunity Site and Sand Development, LLC, 366 South Tenth Avenue, Waite Park, Minnesota 56387 ("Redeveloper") is proposing to redevelop the southern portion of the Opportunity Site; and WHEREAS, at its October* 12, 2015, meeting, the EDA adopted Resolution No. 201.5-22 authorized entering into a Preliminary Development Agreement with the Redeveloper to set out certain responsibilities related to developing preliminary plans and determining feasibility for redeveloping the Opportunity Site and -authorized hiring Solution Blue, Inc., 318 Cedar Street, St. Paul, MN 55101 to conduct the work to be performed by the EDA under the Preliminary Development Agreement; and WHEREAS, the parties have substantially completed their work under the Preliminary Development Agreement and a concept and vision for the phased development of a market rate apartment development ("Apartment Development") within the southern portion of the Opportunity Site was presented to the EDA at its January 25, 2016 work session; and WHEREAS, the proposed Apartment Development meets the City of Brooklyn Center's vision for redevelopment of the Opportunity Site and the next step in the process is for the parties to negotiate and enter into a Final Development Agreement to facilitate construction of the Apartment Development; and WHEREAS, the understandings of the parties regarding the development that would be addressed in the Final Development Agreement include the following: a. Duration of the contract; b. Terms and price of the land acquisition costs; c. Plans and schedule of site preparation improvements to be completed by the EDA; d, Plans and schedule for the public improvements to be completed by the EDA; e. Schedule for the conveyance of buildable lots and the Redeveloper's schedule for construction of the private improvements and residential portion of the planned unit development; EDA.RESOLUTION NO. 2016-06 f. Affordability requirements; g. City review and approval rights (environmental assessment worksheet, residential planned unit development, platting, and site plans); and h. Other financial assistance that may be required to complete the improvements. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota as follows: 1. The EDA hereby authorizes the preparation ,of a Final Development Agreement with the Redeveloper concerning the Apartment Development within the Opportunity Site that reflects the general terms and understandings contained within this Resolution. 2. The negotiated Final Development Agreement must be submitted to the EDA for review and final approval. February S 2016 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Lin Myszkowski and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, April Graves, Kris Lawrence -Anderson, Lin Myszkowski, Dan Ryan and the following voted against the same: whereupon said resolution was declared duly passed and adopted. DATE: February 8, 2016 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Authorizing Preparation of a Final Development Agreement Related to the Development of the Opportunity Site. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of a Resolution Authorizing Preparation of a Final Development Agreement Related to the Development of the Opportunity Site. Background: On September 14, 2015, the City Council/EDA Work Session included a discussion on a preliminary development agreement (Contract for Exclusive Negotiations with Sand Development LLC) for the development of a market rate apartment and commercial Planned Unit Development within the southern portion of the Opportunity Site. The majority consensus of the City Council/EDA was to move forward with the development plan. On October 12, 2015, the EDA adopted Resolution No. 2015-22, a Resolution Approving Agreements Related to the Development of the Opportunity Site. On January 25, 2016, the City Council/EDA Work Session included a review of the Conceptual Master Plan illustrating the conceptual development of the southern 32 acres of the Opportunity site for the phased development of seven apartment buildings, comprising a total of 746 market rate apartment units; a two acre commons area with pool & activity building; a 50,000 sf. performing arts center with structure parking providing 160 stalls; public and private utility and street improvements to serve the development. The consensus of the City Council/EDA was that this Conceptual Master Plan provided by Sand Development and Solution Blue met the City's vision for the redevelopment of its 32 acres within the southern portion of the Opportunity Site and satisfactorily addressed the provisions of the Preliminary Development Agreement necessary to proceed with the preparation of a. Final Development Agreement. Attached for your reference is a copy of the Conceptual Master Plan and a staff memo presented at the January 251h Work Session. Preliminary (Development Agreement (Contract for Exclusive Negotiations) The Preliminary Development Agreement (Contract for Exclusive Negotiations) identified the roles and responsibilities of the EDA as the Master Developer of the Opportunity Site; Sand Alission: Ensuring an attractive, cleat, safe, inclusive community that enhances the quality of life for all people and preserves the public trust Development, LLC as the Redeveloper (builder and manager) of the residential portion of the site; and the following preliminary development tasks to be completed before proceeding with a final development agreement: 1. The EDA finds the design schemes and planned improvements developed by Sand Development meet the City's vision for the redevelopment of the Opportunity Site. 2. The necessary findings and assurances that the project is feasible and marketable are made by Sand Development. 3. The EDA approves the necessary infrastructure improvements and determines that they are economically feasible to be funded through a Tax Increment Bond. Preparation of a Final Development Agreement The development issues that were identified in the Preliminary Development Agreement to be addressed within the Final Development Agreement include the following: a. Duration of the Contract b. Terms and Price of the Land Acquisition c. Plans and Schedule of Site Preparation Improvements to be completed by the EDA d. Plans and Schedule for the Public Improvements to be completed by the EDA e. Schedule for the Conveyance of Buildable Lots and the Redevelopers Schedule For Construction of the Private Improvements and Residential Portion of the PUD f. Affordability Requirements g. City Review and Approval Rights (Environmental Assessment Worksheet, Residential Planned Unit Development, Platting, and Site Plans) h. Other Financial Assistance that may be required to complete the improvements. With respect to these development issues, the following comments are intended to provide the EDA with insight into the negotiations with Sand Development and the drafting of provisions within the Final Development Agreement: Duration of the Contract It is projected that the project will be built in three or four phases over the next 8-10 years. The negotiations will focus on the percentage of occupied units necessary to proceed with the next phase of the development. Terms and Price of the Land Acquisition The proposed development concept provides for the EDA to retain ownership of all lots until the developer has obtained site plan approval, approved construction plans, and necessary financing to complete the building & site improvements. The lot price has been determined to be one dollar with the EDA retaining the Tax Increment generated from the development during the life of the tax increment district. Plans and Schedule of Site Preparation Improvements to be completed by the EDA The negotiations will address the site grading and improvements for the lots proposed to be conveyed with the 1St phase of the development and the interim improvements planned for Mission: Ensuring an attractive, clear, safe, inclusive community that enhances the quality of life for all people and preserves the public trust the lots proposed to be developed in subsequent phases. Plans and Schedule for the Public Improvements to be completed by the EDA As part of the PUD and Platting process, the EDA will have plans and specifications prepared for all of the public street improvements (extension of Earle Brown Drive), municipal water and sanitary sewer lateral lines to serve the development, storm sewer and storm water management plans for the development. The EDA will then proceed with the public advertisement of bid, financing and awarding of contracts to complete the necessary public improvements. Schedule for the Conveyance of Buildable Lots and the Redevelopers Schedule for Construction of the Private Improvements and Residential Portion of the PUD The negotiations with the developer will identify a schedule for the development of the apartment buildings and private improvements to be completed with each phase and strategize opportunities to enhance the overall project. The schedule for the conveyance of buildable lots will directly relate to the construction schedule of the individual lots. Affordability Requirements The funding used by the EDA to acquire this property and the proposed Tax Increment Financing District do not include an affordability requirement. City Review and Approval Rights (Environmental Assessment Worksheet, Residential Planned Unit Development, Platting, and Site Plans) The development agreement will recognize the above approvals necessary for this redevelopment project. The EDA will be the applicant for all of these entitlements, with the exception of the individual site plans which Sand Development will be the applicant. Other Financial Assistance that mgy be required to complete the improvements The preliminary projections of the revenue from the proposed tax increment district are sufficient to complete the public improvements of the development and the opportunity to consider other enhancements to the attractiveness and market receptiveness of the development. The EDA does reserve the option of seeking partnerships with other governmental units and agencies to complement the redevelopment of this area. Budget Issues: The initial development costs for planning, engineering, and legal fees are being funded by Tax Increment District No. 3. The planned improvement costs for this development are part of the financial planning and budgeting associated with the creation of Redevelopment Tax Increment Financing District that is scheduled to be created at the March 28, 2016 City Council and EDA meetings. Strategic Priorities: o Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the pality of life for all people and preserves the public trust �ot�yyy ��u ��r���0���rr� ���r����r� �������-_.ir��r� ®p��r�����i��y bite :CL ��' � r � �, ,-�, r� ., f JAfV UARY 15, 2016 cra-or dune .�♦� i BROOKLYN $O/L/1'10/7 BUB �fernc�ndez CENTER IQ ndSC CIjJE ""'�Bf mxiiers'� arc l-iit�cis Dei•elo�nteni, LLC Brooklyn C flYr=C Southern Opportunity Site K _ Di,p{ ,r NARRATIVE The design proposal is based on the idea that a great place brings together multiple aspects of healthy living that balances housing, open space, density, environmental stewardship, and recreational opportunities in a pedestrian scaled environment. The design composes housing within a series of green spaces that encourage activity, pedestrian use, and public interaction. The 31.33 -acre development is comprised of approximately 750 housing units within a system of public streets and 12.5 acres of connective trails, parks and layered green infrastructure that manages stormwater as amenities to perform critical ecological functions for the environment. The Southwest corner of the site is currently planned as a future civic node that would act as a public cornerstone to the new neighborhood. Through design, the project creates a unique environment that is engaging, interesting, functional and builds a sense of ownership rooted in a Brooklyn Center identity. The site plan concept proposes approximately 750 units of multifamily, apartment style rental homes. Based on preliminary market study projections and subject to market conditions, it is anticipated that the full build -out and absorption period will range from seven to nine years. It is anticipated that approximately 200 units will be open for occupancy within the first twenty-four months followed by another 100 units twelve months later. At that time, a better idea of staging of the remaining units can be determined. The Street The extension of Earl Brown Drive is the main armature for the development and is designed with the specific intent that the street can be an enjoyable place to be. The result is a fully functioning road that acts as open space supporting pedestrian and recreational use. The road extension uses controlled intersections to deter pass through traffic in the residential area. Pedestrian crosswalks are located at intersections and key crossing areas that access park amenities. The street is designed to functionally meet all vehicular standards and safety needs while creating a robust pedestrian environment that connects to the natural systems and the trail along Shingle Creek (see Appendix B for Traffic Analysis). This connection is critical to the development as it creates a direct access to Centennial Park and connections to regional trails. The street is designed with 10' wide multi -use trails on each side of the street, tree planted boulevards and pedestrian level street lighting. Housing units are positioned to provide a sense of enclosure and a comfortable pedestrian environment. Other amenities such as seating, pocket parks, plazas, unique stormwater management features, and public art further support the use and a successful street design. The Green Space The project is designed on a "complete street" model that connects a series of open spaces organized around a large central green. Smaller pocket parks terminate the ends of Earl Brown Drive uniquely framing the street with open spaces. The pocket parks could hold rest locations, creative stormwater management technologies, playground, shelter and public art. Other pocket plaza areas extend off the street at corners and along housing units providing other opportunities for residents and the public to actively use the outdoor environment. The main park space acts as the organizing hub to the entire development. It is composed of open lawn areas, a community center with pool, plazas, playgrounds and a series of unique stormwater management features that celebrate storm water conservation and stewardship. The central park extends along an arching axis that directly connects the corner of Bass Lake Road and Shingle Creek Parkway. Along the axis, rainwater features frame spaces and connect through the development to the future civic cornerstone. Stormwater Stormwater and water management stewardship contribute to a healthy living model where residents and visitors are encouraged to acknowledge and interact with their surrounding environment. In this development, stormwater management is layered into green spaces where it is displayed as an amenity to space and place making, rather than hidden or managed as often -neglected rain gardens. These layered "green infrastructure" systems range from highly designed hard -edged stormwater features to more natural filtration basins. By combining gathering space, walkways, walls and other site features with stormwater systems, the design intends to create managed spaces that celebrate water as an integral component of place making. (See Appendix C) 2 �i�h� �.��! 1��1{'i�)i�ll sill' ���� �-t1. •1 �p,.�i — Construction Description The apartment buildings proposed for the Brooklyn Center site will be four story apartment structures over underground parking garages. The parking garages are to be constructed with concrete walls and floors and precast columns and beams supporting hollow core concrete floor slabs having a three hour fire rating. Access to the garages will be via ramped concrete driveways with in -slab heat to avoid ice problems. The parking garages will accommodate one parking spot per apartment unit. Garages are heated and have sprinkler coverage. Passive radon control systems will be incorporated into the. construction. The apartment units will be constructed of wood frame systems meeting the Type V —One hour International Building Code Construction Type. Floors and roofs are framed with long span wood web joists 22 inches deep, and exterior and corridor walls are of 2" x 6" frame construction. Stair, elevator and mechanical vertical shafts will be two hour rated construction. The building will be fully sprinklered including within floor and roof joist systems and dry standpipe systems will be located in all stair shafts. Exterior walls will be clad in several long lasting materials including an ashlar stone faced concrete masonry product, a cement board panel system and cement lap siding. Balconies will have prefinished aluminum decking and powder coat painted railings. Roofs will be white PVC membranes over rigid insulation. Apartment units will be fully finished with painted gypsum walls and floors of residential carpeting with ceramic/porcelain tile in baths and kitchens. Corridors and stairs will be carpeted with mats used at all entrances. Each apartment building will have a management office and conference area and larger buildings will also have maintenance offices. Afitness center will be located in each building as well as community gathering rooms. Exterior patio areas with gas grilles, picnic tables and fire pits will serve each building. Playgrounds will additionally be provided for each building. Apartment units will have individual central gas fired heating and air conditioning. Hot water will be supplied from central boilers and water storage tanks. Apartments will be individually metered for gas and electricity. All apartments will be provided with TV, Data and Phone cabling. A-1 Deck Apartment Homes Featured Amenities __- -Custom Kitchen Features Controlled Access Entry - WaslTer/Urygc in Unit % i �`-� -Underground Perking � � - 1 -Outdoor Space and Grill -Community Room. / -Walk-In Closets - On -Site Manager- -- ' •Fitness Room _ -Package and Dry Cl�ariing -- Acco m rr5octafi o rls , �- f i eedroom V Jr9 ��¢droo� Betlr <om Ro'om I Bedroom � � I VOdrY J Bedroom Kimnen I umng Room 9k t Ib I1 = `/ � � ��: - Batti n-L3un ry Bath �� Ki0 � O _-��� �_.. en _ Bat �. W1C' Hetlroom (/ (/ \- �� kJne-Bedl=ogrn- \\ \ Two Bedroom Three Bedroom 25sq: feet f/J 1,045 sq. feet 1,360 sq. feet __ _. 'L`'I'ls�:'�gl� �_ Ac[usl represenGtlomofflour Nlans mayva ry. Newaurwabslte Tor more information. A '1 ,l w.5anticompaNazcom '-- — vvo w"!� We offer the benefits of a profs nal ma agement team well as tM1e individual attention you deserve. For atheF great properties, visit our website. •.•��� - PYOj)CYija Management, z_zc PropertyManagemen!@SandCompames comity wSand PropertyManagem nt co,m 366 South T¢nth Avenu¢ I P.O. Boa 727 i Waite Park, MN 56387-072J _ .+ �� is i P: 320.202.3100 i F: 320.202.3139 a- .�. sTry-r ye, - � - -�� _� A-4 '��..I -- D O s � w � _ O � � o � �o � ` � � m .:o \ � � _\C� O „\` Plymouth Commons 3301 Highway 169 N (P) 763-546-4949 (F) 763-512-1970 Email Plymouthcommons@hotmail.com December 3, 2016 Craig A. Hanson Hanson Law Office, PA 921 1St Street North Suite 104 St. Cloud MN 56303 I am writing this letter to you and the city of Brooklyn Center MN to express my interest in being a major part of the redevelopment of the old Dealership Site in Brooklyn Center. As you know I currently have about 250 Apartments across the road from this site which we remodeled a number of years ago and over 400 in the city of Brooklyn Center itself and now is doing well. We believe that the proposed redevelopment site would be wonderful location to for market rate apartments. We invasion about 400-450 units of such apartment would work for that location. In total, we currently own and manage over 1700 units and have little to no debt on our properties. We certainly would have the financial ability to development, construct and own the units. I would also be very interested in being an investor or the sole owner of the proposed assisted living Facility that has been discussed on the site. This however I would not manage, but contract with a professional SR living management company. We are excited to be a part of this redevelopment site in Brooklyn Center. If you have any questions you can reach me directly at 612-669-1800. Sincerely, Gary Briummer Owner/ President Brummer Properties From: Scott Riddle[mailto•SRiddle@walkermethodist.orj Sent: Monday, December 05, 2016 8:43 AM To: Craig Hanson <Craig@hanlawoffice.com> Subject: Brooklyn Center MN Craig A. Hanson Hanson Law Office, PA 921 1St Street North Suite 104 St. Cloud MN 56303 RE: Senior Living Facility in Brooklyn Center MN Dear Mr. Hanson I am writing this letter to acknowledge our interest in working with your group on the development and management of an Senior Living Facility on the former Brookdale Ford Dealership Redevelopment site in Brooklyn Center MN. Based upon the preliminary Market Study and our knowledge of the area we believe that the area could support a 150-200 bed facility. I believe with facility would complement the proposed apartment units that we discussed. Our interest would extend to both being an investor in the project or simply to manage the facility for the ownership group. We are excited to be a part of this redevelopment site in the Brooklyn Center Community and believe the location fits within our geographic area and aligns with our organization's mission. If you have any questions you can reach me directly at 612.827.8380. Sincerely, Scott Riddle Chief Executive Officer/ President Walker Methodist Scott Riddle I CEO/President o: 612.827.8380 1 f: 612.827.8458 1 c: 612.803.9844 Opening Fall 2016 Walker Methodist Plaza Gardens: http://www.walkermethodist.org/assisted-I communities/plaza/plaza-gardens-expansion Follow Walker Methodist! MEMEMEMMEM . . - W Lk er methodist Confidentiality Notice: The information contained in this message may be privileged and confidential and protected from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by reolvina to this message and deleting it from your computer. Thank you. Walker Methodist. Walker Methodist:: About Us _r methodist Page 1 of 11 Walker Methodist is a faith -based, non-profit senior living organization that's been serving older adults since 1945. We provide housing, healthcare, rehabilitation, and services to seniors and the people who support them. Additionally, Walker Methodist inspires people in the field of older adult services by establishing careers that create environments that enhance the lives of the people we serve. At Walker Methodist, we believe age does not hold you back. We've created communities and services that enhance your life. Places where you have the freedom to enjoy the lifestyle and activities that suit your needs. Our goal is to ease your burdens so you can live fully each and every day. Walker Methodist is a choice for those who want to participate in life throughout their entire life. Join us - and experience our Mission: Life. And all the living that goes with it. Enhancing the lives of older adults through a culture of care, respect, and service. Walker Methodist provides housing, healthcare, rehabilitation, and services to seniors and the people who support them. http://www.,"�alkermethodist.org/about-us 12/5/2016 w N z P 0 0 z V N lU ICU, p o cla IN 0 Z w u- z W- 13 (L o(L0 W13o cazu U -w 13 LU L Z Z � ttl 9 2n mm $ a m .`m V LL LU m a Q Ea c LuN 73 C>A LU N Z w mm z1!6 ul !V O Z LL (Y- O W UN H -Er o ; � ® � 0 Rive Ya�y �a� MA�t�N_p'ay •• • � �iy�'Q V�'�? f I tom_ _ ..s : \`` ` � � / / / • • •• oz N� LL �El � _ F ' I � V r i