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HomeMy WebLinkAbout2017 02-13 EDAP0 EDA MEETING City of Brooklyn Center Constitution Hall, Community Center February 13, 2017 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 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. January 9, 2017— Regular Session 4.Commission Consideration Items a.Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Avenue North) Requested Commission Action: —Motion to adopt resolution. b.Resolution Approving the Removal of a Parcel from Tax Increment Financing District No. 3 within Housing Development and Redevelopment Project No. 1 (2500 Co. Rd. 10 - former Brookdale Ford Site) Requested Commission Action: —Motion to adopt resolution. 5. Adjournment C . S 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 JANUARY 9, 2017 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 7:53 p.m. 2.ROLL CALL President Tim Willson and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Interim Assistant to the City Manager Reggie Edwards, 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.December 5, 2016— Special Session 2.December 12, 2016 - Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2017-01 ELECTING OFFICERS FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER Mr. Boganey provided background on this item and discussed the proposed resolution. Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2017-01 Electing Officers for the Economic Development Authority in and for the City of Brooklyn Center. 01/09/17 -1- DRAFT Motion passed unanimously. 4b. RESOLUTION NO. 2017-02 OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2017 Mr. Boganey provided background on this item and discussed why the City in the past has opted not to waive this coverage. Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded to adopt RESOLUTION NO. 2017-02 Opting Not to Waive Limited Tort liability for 2017. Motion passed unanimously. 5. ADJOURNMENT Commissioner Ryan moved and Commissioner Lawrence-Anderson seconded adjournment of the Economic Development Authority meeting at 7:56 p.m. Motion passed unanimously. 01/09/17 -2- DRAFT . S 0 DATE: February 13, 2017 TO: Curt Boganey, City Manage FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Avenue North) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program (5315 James Avenue North). Background: January 11, 2017, a fire at 5315 James Ave. N. resulted in extensive interior and exterior damage to this single family home, resulting in the structure being declared a hazardous building. The property owner was aware of the EDA's program of acquiring and removing blighted buildings and inquired if the EDA would be interested in possibly acquiring his property. Remove and Rebuild Program: On January 12, 2009, the EDA adopted Resolution No. 2009-02, A Resolution Establishing Housing Programs and Approving the Use of Funds from Tax Increment District No. 3 Housing Account, which authorized the 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. Proposed Acquisition: The property is an interior lot, with 50' of frontage on James Avenue N. and 119.03' of depth with rear access from a 30 foot wide alley. The tax records indicate that the residence was built in 1942. The home to the north was constructed in 1959 and the home to the south was constructed in 1958. The 2017 property tax value is shown at $97,000. Bldg. Value $62,000 Lot Value $35,000 Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust There are no special assessments levied on this property. Budget Issues: The acquisition of this blighted property for its assessed lot valuation of $35,000 is proposed to be funded from the Tax Increment District No. 3 Housing Account. The estimated cost of demolition and site restoration is approximately $15,000. The proceeds from the sales of this lot are considered to be future tax increment revenue for Tax Increment Financing District No. 3 Housing Account. Strategic Priorities: Enhanced Community Image Mission: Ensuring an attractive, clean, safe, inclusive conilnunhty that enhancesances 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 BLIGHTED PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD PROGRAM (5315 James 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: o To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment; and o 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, on January 11, 2017, a house fire at 5315 James Avenue North caused extensive damage to the interior and exterior of this residence resulting in the home to be declared to be uninhabitable and a blighted building; and WHEREAS, the real property located at 5315 James Avenue North, (the "Subject Property") is a voluntary sale of a vacant and uninhabitable single family residence for the amount of $35,000 (its current assessed lot valuation). 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. EDA RESOLUTION NO. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota, as follows: 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. February 13, 2017 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: 1/24/2017 PARCEL ID: 0211821440057 OWNER NAME: Michael Thomas Stewart PARCELADDRESS: 5315 JamesAve N, Brooklyn Center MN 55430 PARCEL AREA: 0.14 acres, 5,952 sq ft A-T-B: Torrens SALE PRICE: $34,000 SALE DATA: 05/1977 SALE CODE: ASSESSED 2015, PAYABLE 2016 PROPERTY TYPE: Residential HOMESTEAD: Homestead MARKET VALUE: $100,300 TAX TOTAL: $1,465.18 ASSESSED 2016, PAYABLE 2017 PROPERTY TYPE: Residential HOMESTEAD: Homestead MARKET VALUE: $97,000 Comments: Michael Stewart 3813 38th Ave. S. Minneapolis, Mn. 55406 (Brother's home - temp. residence) 612-722-2828 (brother's home) His cell # 763-350-3968 This data (i) is furnished AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsul table for legal, engineering or surveying purposes. Hennepin County shall not bailable for any damage, injury or loss resulting from this data. COPYRIGHT © HEN NEPIN COUNTY 2017 I' I 'I 1.. - -I ) 1 PURCHASE AGREEMENT 1.PARTIES. This Purchase Agreement ("Purchase Agreement") is entered into this day of February, 2017, by and between Michael Thomas Stewart, 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 5315 James Avenue North, Brooklyn Center, MN 55429, Hennepin County, Minnesota and legally described as follows: Lot 4, Block 3, "Humbolt Addition" [Torrens Certificate No. 550735] 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. 5. PURCHASE PRICE AND TERMS: A. PURCHASE PRICE: The total Purchase Price ("Purchase Price") for the Property is Forty Thousand and No/i 00ths Dollars ($40,000.00). IL (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: a. Building and zoning laws, ordinances, state and federal regulations. 493780v1 CBR BR305-145 1 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. lilIllihU ah1 i toivau iiai m L'i aii D IYVIj I(II :i'&i m A.Warranty Deed free and clear of encumbrances subject only to the exceptions stated in SB (3) a, b, c and d. 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 and receipt of Title Evidence ("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 2016 and prior years on the Property, including any delinquent real estate taxes. B.Real estate taxes due and payable in 2017 shall be prorated as of Closing between Buyer and Seller. If the amount of real estate taxes due and payable in 2017 are 493780v1 CBR BR305-145 2 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 2016. 1L 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 close the transaction contemplated by this Agreement. Each party shall be responsible for its own attorneys' fees and costs. 4937800 CBRBR305-145 3 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 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 not in use. In the event there is a sewage treatment system, a.map of said location of the system is attached. 16.WELL DISCLOSURE. []Seller discloses that there is a well on or serving the Property. A well disclosure Certificate accompanies this agreement. Or Ei?l 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 contemporaneous herewith shall be effective except as expressly set forth or incorporated herein. 493780v1 CBRBR3O5-145 4 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: Michael Thomas Stewart 3813 38 th Avenue North Minneapolis, MN 55406 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. 493780v1 CBRBR305-145 5 ll'I WITNESS WHEREOF, the parties have executed this agreement as of the date written above. SELLER By Michael Thomas Stewart Economic Development Authority of Brooklyn Center, Minnesota By: Its: President By: Its: Executive Director 493780v1 CBRBR3O5-145 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 EDA acquires my residence located at 5315 James 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 maybe 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. 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 4937800 CBR BR305-145 7 Development Authority of Brooklyn Center, Minnesota purchasing my property for the gross purchase price of $40,000.00. If this commitment to me is not fulfilled, the agreement is null and void. Date Michael Thomas Stewart, Seller WITNESS: 493780v1 CBRBR305-145 Acquisition of Blighted Property in Connection with the Remove and Rebuild Program 5315 James Avenue North EDA Meeting February 13, 2017 Agenda Item 4.A Subject Location Map – 5315 James Avenue N. Subject Location Map – 5315 James Avenue N. BACKGROUND January 11, 2017 - fire resulted in extensive interior and exterior damage to home; structure later declared a hazardous building. Owner was aware of EDA's program of acquiring/removing blighted buildings; inquired if the EDA would be interested in possibly acquiring his property. Remove and Rebuild Program January 12, 2009 - EDA adopted Resolution No. 2009-02, a Resolution Establishing Housing Programs and Approving the Use of Funds from Tax Increment District No. 3 Housing Account, which authorized the Remove and Rebuild Program. 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. Proposed Acquisition Property is an interior lot, with 50-ft. of frontage on James Avenue N. and 119.03 ft. Depth Rear access from a 30 foot wide alley. Tax records indicate residence was built in 1942. The 2017 property tax value is shown at $97,000. Bldg. Value = $62,000 Lot Value = $35,000 There are no special assessments levied on this property BUDGET ISSUES The acquisition of this blighted property for its assessed lot valuation of $35,000 is proposed to be funded from the Tax Increment District No. 3 Housing Account. The estimated cost of demolition and site restoration is approximately $15,000. The proceeds from the sales of this lot are considered to be future tax increment revenue for Tax Increment Financing District No. 3 Housing Account. RECOMMENDATION Economic Development Authority adopt the Resolution Authorizing the Acquisition of Blighted Property in Connection with the Remove and Rebuild Program, for the property located at 5315 James Avenue North QUESTIONS? EDA in ri Item No. L I *_71 V I U I I Dk'4 [I) 1I 1IA'A1 DATE: February 13, 2017 TO: Curt Boganey, City Manag63 FROM: Gary Eitel SUBJECT: Resolution Approving the Removal of a Parcel from Tax Increment Financing District No. 3 within Housing Development and Redevelopment Project No. 1. (2500 Co. Rd. 10— former Brookdale Ford Site) Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Approving the Removal of a Parcel from Tax Increment Financing District No. 3 within Housing Development and Redevelopment Project No. 1. (2500 Co. Rd. 10 - former Brookdale Ford Site) Background: Tax Increment District No. 3 was established in 1994 through special legislation which enabled the creation of this scattered site redevelopment district involving 221 parcels within the Brooklyn Boulevard/69th Ave. Area, the Brookdale Area, and the Willow Lane/Hwy 252 area for the following purposes: • To enhance the tax base of the City, • To provide maximum opportunity, consistent with the needs of the City for development by private enterprise, • To better utilize vacant or underdeveloped land, • To attract new businesses, • To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment, • To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly. A provision within the special state legislation required that 15% of the annual tax increment revenues be deposited into a housing development account established by the Authority and expended according to the tax increment financing plan. The District received its first increment in 1996 and is scheduled to close in 2021. Attached for your reference is a map identifying this Tax Increment Financing District. Included with the Brookdale area parcels of Tax Increment District No. 3 is the former Brookdale Ford Lot at 2500 Co. Rd. 10 and identified as PID # 02-118-21-24M019. Mission: Ensuring on attractive, clean, safe, inclusive community that enhances the quality of life for till people and preserves the public trust The removal of this tax parcel from Tax Increment Financing District No. 3 is necessary to implement the March 28, 2016 City Council and EDA approvals to establish Tax Increment Financing District No. 7. Tax Increment Financing District No. 7 On March 28, 2016 conducted a public hearing on establishing of Tax Increment Financing District No. 7 and adopted Resolution No. 2016 - 46 A Resolution Approving a Modification to the Redevelopment Plans for Housing Development and Redevelopment Project No. 1 and Establishing Tax Increment Financing District No. 7 (Redevelopment District) Therein and Approving a Tax Increment Financing Plan Therefor (Opportunity Site). Additionally, the EDA adopted Resolution No. 2016-08, a companion resolution approving the establishment of this District and the District's Financing Plan. The boundaries of Tax Increment District No. 7 include 9 parcels within the southern portion of the Opportunity Site (lying south of John Martin Drive): 5930 Shingle Creek Parkway Jani King (office building) 5939 John Martin Drive former Golden Value Market (acquired by EDA) 5927 John Martin Drive New King Buffet & Tires Plus 5915 John Martin Drive former Perkins Restaurant site (for sale by owner) 5901 John Martin Drive Health Partners Dental Clinic 5910 Shingle Creek Parkway Mn. School of Business (office building) 5900 Shingle Creek Parkway former Brookdale Square Center (acquired by EDA) 2500 Co. Rd. 10 former Brookdale Ford (acquired by EDA) PID 02-118-21-13-0007 remnant parcel adjacent to Hwy 100 ramp and 3 adjacent parcels within the eastern portion of the Shingle Creek Crossing Development: PID 02-118-21-24-0021 remnant parcel adjacent to 2545 Co. Rd. 10 2545 Co. Rd. 10 former Boulevard Restaurant (acquired by EDA) 2501 Co. Rd. 10 former Kohl's building Attached for your reference is a map illustrating the boundaries of Tax Increment Financing District No. 7. The district has been qualified as a 25 year Redevelopment District with redevelopment opportunities planned for the parcels within the Opportunity Site to include the phased development of market rate apartment units, a performing/community arts center, and owner occupied townhome units. The parcels within the Shingle Creek Crossing Development are proposed to remain commercial and include opportunities for an additional 10,000 sf. of commercial development and the renovation of the 75,000 sf. former Kohl's building or redevelopment of this 6.8 acre site. The Plan identifies the anticipated use of tax increment to correct structural and building issues causing the commercial blight within the Kohl's parcel and to finance public roadways, utilities, Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust site improvements, structured parking, and other eligible costs associated with the redevelopment of the Opportunity site, as well as related administrative expenses. The creation of this tax increment district establishes a financing tool and mechanism to bridge funding gaps, undertake public improvements, project enhancements, and corrective actions to eliminate blight. The future development approvals, including a PUD Amendment, Site Plan Approval, and Tax Increment Development Agreements, public/private partnerships with the development community are the actions to be taken by the City Council and EDA to implement the necessary public improvements and achieve the City's vision for redevelopment of this portion of the Opportunity Site. Budget Issues: The costs associated with removing this parcel from Tax Increment District No. 3 is an eligible TIF 3 Administrative Cost. At the time this parcel is redeveloped, the County Assessor will determine the current assessed valuation of this parcel which will then be added to the base property valuations of Tax Increment District No. 7 and available to all taxing jurisdictions. Strategic Priorities: Targeted Redevelopment Mission: Ensuring on attractive, clean, safe, inclusive community that enhances the quality of life for all people am/preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO.___ RESOLUTION APPROVING THE REMOVAL OF A PARCEL FROM TAX INCREMENT FINANCING DISTRICT NO. 3 WITHIN HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1. (2500 Co. Rd. 10 - former Brookdale Ford Site) WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota (the "EDA") and the City of Brooklyn Center, Minnesota (the "City") have heretofore created Tax Increment Financing District No. 3 (the "TIF District") within Housing Development and Redevelopment Project No. 1 (the "Project") and approved a tax increment financing plan (the "TIF Plan") for the TIF District, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"); and WHEREAS, the following parcel (the "Property") was included in the TIF District: Parcel Identification No. 0211821240019 WHEREAS, the EDA desires by this resolution to amend the TIF Plan to remove the Property from the TIF District, thereby reducing the size thereof, and WHEREAS, the Property was acquired by the EDA after certification of the TIF District and is owned by the EDA and therefore, pursuant to Section 469.177, Subdivision 1(a) of the TIF Act the net tax capacity of the Property is excluded from the net tax capacity of the TIF District; therefore, the current net tax capacity of the Property equals the original net tax capacity of the Property in the TIF District's original net tax capacity and, consequently, this amendment to the TIF Plan may be accomplished without notice or hearing pursuant to Section 469.175, Subdivision 4(e)(2)(A) of the TIF Act. NOW THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota that the TIF District and the TIF Plan for the TIF District are hereby amended to remove the Property. The EDA Secretary is authorized and directed to notify the County Auditor of this modification pursuant to Section 469.175, Subdivision 4(e) of the TIF Act. February 13, 2017 Date President EDA RESOLUTION NO. 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. ©prn coY©pm Pm©ft Vlc. £mct 0 0 h h h h- A t' - F—] TI F 3 Area [[ Al Project Area Boundary Ii CityBorder S t,tt! Cr?m(,S S(G3) YE5O3.S2I City of LI- BROOKLYN 0 025 0.5 ) CENTER - N11 I as Crested by Brooklyn Center Business and Development DeptJGIS Document Poth: L:\Usemn\ComnDev\tlFnrenn\TlF3Pmoposed.mvod Housing Development and Redevelopment Project No. 01 and Tx Increment Financing (TIF) District Mo. 7 (Proposed) OENT Q', , s fv , ' Ifi CU URN, bk w7R J2, Ot nyXA 3, I U, EU I ' LEGEND IT TIF No. 7 (Proposed) N£JflLflLUi W-4E Chof BROOKLYN S CENTER 0 00375 0075 015 Miles Created by Brooklyn Center Business and Development Dept.iGIO Document Path: L:iUerru\CornDeu\TIFnreos\TIF_DISTRICT_NO_7.mXd Resolution Approving the Removal of a Parcel from Tax Increment Financing District No. 3 within Housing Development and Redevelopment Project No. 1. (2500 Co. Rd. 10— former Brookdale Ford Site) EDA Meeting February 13, 2017 Agenda Item 4.B BACKGROUND Tax Increment District No. 3 was established in 1994 through special legislation which enabled the creation of this scattered site redevelopment district involving 221 parcels within the Brooklyn Boulevard/69th Ave. Area, the Brookdale Area, and the Willow Lane/Hwy 252 area for the following purposes: To enhance the tax base of the City, To provide maximum opportunity, consistent with the needs of the City for development by private enterprise, To better utilize vacant or underdeveloped land, To attract new businesses, To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment, To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly. Included with the Brookdale area parcels of Tax Increment District No. 3 is the former Brookdale Ford lot at 2500 Co. Rd. 10 Removal of this parcel from TIF No. 3 is necessary to implement the March 28, 2016 City Council and EDA approvals to establish Tax Increment Financing District No. 7. The district has been qualified as a 25 year Redevelopment District with redevelopment opportunities planned for the parcels within the Opportunity Site to include the phased development of market rate apartment units, a performing/community arts center, and owner occupied townhome units. The parcels within the Shingle Creek Crossing Development are proposed to remain commercial and include opportunities for an additional 10,000 sf. of commercial development and the renovation of the 75,000 sf. former Kohl’s building or redevelopment of this 6.8 acre site. BACKGROUND Tax Increment District No. 7 - a 25 Year Redevelopment District The creation of this tax increment district establishes a financing tool and mechanism to bridge funding gaps, undertake public improvements, project enhancements, and corrective actions to eliminate blight. The Plan identifies the anticipated use of tax increment to correct structural and building issues causing the commercial blight within the Kohl’s parcel and to finance public roadways, utilities, site improvements, structured parking, and other eligible costs associated with the redevelopment of the Opportunity site, as well as related administrative expenses. BUDGET ISSUES The cost associated with removing this parcel from Tax Increment District No. 3 is an eligible TIF 3 Administrative Cost. At the time this parcel is redeveloped, the County Assessor will determine the current assessed valuation of this parcel which will then be added to the base property valuations of Tax Increment District No. 7 and available to all taxing jurisdictions. RECOMMENDATION It is recommended that the Economic Development Authority consider approval/adoption of Resolution Approving the Removal of a Parcel from Tax Increment Financing District No. 3 within Housing Development and Redevelopment Project No. 1. (2500 Co. Rd. 10 – former Brookdale Ford Site) QUESTIONS?