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HomeMy WebLinkAbout2017 08-28 EDAPEDA Agent di EDA MEETING City of Brooklyn Center August 28, 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 at the podium. 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. August 14, 2017—Regular Session 4.Commission Consideration Items a. Resolution Approving and Authoring the Execution of a Letter of Intent to Sell Property at 1950 57th Avenue North Requested Commission Action: —Motion to adopt resolution. 5. Adjournment EDA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENEPIN AND THE STATE OF MINNESOTA REGULAR SESSION AUGUST 14, 2017 CITY HALL - COUNCIL CHAMBERS iPLIiI]U]afl1 The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:43 p.m. President Tim Willson and Commissioners Dan Ryan, Kris Lawrence-Anderson, April Graves, and Marquita Butler were present. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Michaela Kujawa- Daniels, TimeSaver Off Site Secretarial, Inc. IitI II)7 Commissioner Ryan moved and Commissioner Graves seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. July 24, 2017 - Regular Session Motion passed unanimously. I. IO1UJI I (I)I UI 4hYA 4a. RESOLUTION NO. 2017-09 CALLING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND LOCATED AT 5315 JAMES AVENUE NORTH Director of Business and Development Gary Eitel introduced the item, provided a presentation on the history, and stated the purpose of the proposed resolution. Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2017-09 Calling for a Public Hearing Regarding the Sale of Land Located at 5315 James Avenue North. 08/14/17 -1- DRAFT Commissioner Ryan asked if these homes have sold easily after completion. Mr. Eitel stated that is correct and this is a lot of home to purchase with all the updates and will make a good home for a first-time buyer. Motion passed unanimously. 4b. RESOLUTION NO. 2017-10 CALLING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND LOCATED AT 5301 JAMES AVENUE NORTH Director of Business and Development Gary Eitel introduced the item, provided a presentation on the history, and stated the purpose of the proposed resolution. Commissioner Graves asked where the parking and garage will be located. Director of Business and Development Gary Eitel stated it is in the rear. Commissioner Ryan stated these properties will look very nice once they are completed and will provide a nice home for someone. Commissioner Lawrence-Anderson moved and Commissioner Butler seconded to adopt RESOLUTION NO. 2017-10 Calling for a Public Hearing Regarding the Sale of Land Located at 5301 James Avenue North. Motion passed unanimously. £UMWJ h1U I Commissioner Graves moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 7:58 p.m. Motion passed unanimously. 08/14/17 -2- DRAFT EPA Agenda Rem N©0 4 EIDA ]ITEM MEMORANDUM DATE: August 28, 2017 TO: Curt Boganey, City Manag FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Approving and Authoring the Execution of a Letter of Intent to Sell Property at 1950 57th Avenue North Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Approving and Authoring the Execution of a Letter of Intent to Sell Property at 1950 57th Avenue North Background: On August 14, 2017, City Council/EDA Work Session included a discussion on an option for the EDA to enter into a Letter of Intent with Ebert Construction for the commercial development of approximately 2 acres of the northern portion Lot 1, Block 1, Northbrook Center 2 n Addition (the 57th & Logan site) for a four story, 112,000 sf. commercial storage building. The consensus the EDA was a favorable response to the following policy issues: 1.Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA's Targeted Redevelopment Strategy for the 57th & Logan Site? 2.Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57th & Logan Avenue site? Attached for reference is a copy of the August 14, 2017 staff memorandum. Letter of Intent with Ebert Construction for a Commercial Storage Building at 57 ° & Logan: The proposal by Ebert Construction provides for the acquisition of approximately 2 acres within the northern portion of the 57th & Logan Site for the construction of a four story, 112,000 sf. commercial storage building. The site plan illustrates the positioning of the building to the south of Outlot A, presently the location of the MPCA's monitoring wells for the ongoing groundwater and vaper investigation of contamination caused by a former dry cleaning operation. Additionally, Ebert Construction has indicated they would coordinate on-site storm water management with the planned development of the southern portion of the & Logan site. The proposed purchase price is $346,000 (approximately $4.00 per sf.), including $50,000 in earnest money. Mission: Ensuring an ut/rae/we, clean, safe, inclusive coinnnuuti' that enhances the quality of life for all people anti preserves the public trust I * )JV VI 3K'A LU 3IhYA (I] 1iWI IIL'AI The developer has indicated that their proposal does not involve any financial assistance, noting that they have discussed this development with the original environmental engineer employed by the EDA (Scott Tracy) and the original clean up contractor (John Hink), and that any remaining environmental work to be done on this site will not affect their offer of $346,000. The architectural rendering of the proposed building illustrates the quality of their construction and building materials which will meet the architectural guidelines established by the EDA for the Shingle Creek Crossing Development. A similar four story commercial storage building, located in the northeast corner of Douglas Ave. and Hwy 55 in Golden Valley has an assessed valuation of $5,300,000. The projected closing date is identified as on or before December 29, 2017. Resolution Approving and Authorizing the Execution of Letter Intent to Sell Property at 195057 lb Avenue North The City Attorney has prepared the attached resolution providing for the EDA' s approval of the Letter of Intent; authorizing the President and Executive Director to execute the Letter of Intent on behalf of the EDA; and authorizing the EDA staff and officials to negotiate the terms of a purchase agreement for review and approval by the EDA after conducting a public hearing on this proposed sale. The terms of the purchase agreement will include the necessary planning, zoning, and subdivision actions, including site and building plan approval; a C-2 PUD rezoning; and subdivision/land division necessary to create this 2 acre commercial lot. Budget Issues: The 57th & Logan Site was acquired with funds from Tax Increment District No. 3. The proceeds from the future sales of this property will be considered tax increment and available for other eligible TIF 3 budget expenditures or debt service. Strategic Priorities: Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, ijiclusive coinniwiitj that enhances the qiialilj of life for al/people and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO.__________ RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A LETTER OF INTENT TO SELL THE PROPERTY LOCATED AT 195057TH AVENUE NORTH WHEREAS, the Economic Development Authority of the City of Brooklyn Center, Minnesota ("EDA") is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 to acquire and convey real property and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, Ebert Construction (dba E&R Investments LLC) ("Purchaser") is interested in purchasing the approximately two acres of property the EDA owns at 1950 57th Avenue North ("Property") for the purposes of developing it for a storage facility and other commercial uses in accordance with the City of Brooklyn Center's regulations; and WHEREAS, the Purchaser submitted a letter of interest ("LOT") dated July 28, 2017, which is incorporated herein by reference, proposing to purchase the Property on terms that include the following: 1.A purchase price of three hundred forty six thousand dollars ($346,000), including fifty thousand ($50,000) earnest money; 2.A proposed closing date on or before December 29, 2017; 3.The Purchaser having one hundred eighty (180) days from the execution of the purchase agreement to satisfy itself regarding the environmental conditions and title of the Property; and 4.The EDA providing the Purchaser certain information regarding the Property within particular periods after the execution of the purchase agreement; and WHEREAS, the EDA and Purchaser both acknowledge and agree the terms of the LOT are not binding, that the parties will instead work to negotiate the terms of a binding purchase agreement for the sale of the Property, and that the EDA must conduct a public hearing on the proposed sale before it can approve a proposed purchase agreement. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota ("Board") as follows: EDA RESOLUTION NO. 1.The Board hereby approves the LOI with the Purchaser regarding the sale of the Property. 2.The EDA President and Executive Director are authorized to execute the LOT on behalf of the EDA. 3. EDA staff and officials are authorized to negotiate the terms of a purchase agreement with the Purchaser regarding the sale of the Property for review and approval by the EDA after conducting a public hearing on the proposed sale. August 28, 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. MEMORANDUM EDA WORK SESSION DATE: August 14, 2017 TO: Curt Boganey, City Manage FROM: Gary Eitel, Director of Business & Development SUBJECT: Discussion regarding a Letter of Intent with Ebert Construction for the Commercial Development of approximately 2 acres of the northern portion of Lot 1, Block 1, Northbrook Center 2nd Addition. (four story 112,000 sf. commercial storage building 57 '1' & Logan) Recommendation: It is recommended that the City Council consider providing direction to staff regarding the potential development of approximately 2 acres within the northern portion of Loti, Block 1, Northbrook Center 2'd Addition for a four story, 112,000 sf. commercial storage building. Background: The 20182020 Strategic Plan includes Target Redevelopment Project Areas for 3 sites within the City's Central Commerce District (the Opportunity Site, the 57th1 and Logan Site, and the Jerry's Food Site) The desired outcome established for the 57th & Logan 8 acre site is a redevelopment that is inviting, attractive, and vibrant. The target for this redevelopment includes a 20,000 sf. retail use and 50 residential units by 2020. The redevelopment target was established based on previous development concepts that had been accepted by the EDA: 2006, a Letter of Intent with the Steiner Development Group for a mixed use commercial & residential development. Attached is a copy of the proposed concept which followed the Northbrook Development Guidelines prepared by Damon Farber Associates in conjunction with the Opportunity Site Study. 2014, a Letter of Intent with Told Development for 5 potential commercial sites with an architectural theme similar to the Shops of Wedgwood in Maple Grove to distinguish the commercial character of the project. Attached is a copy of the conceptual development plan. Both developers experienced market issues and the projects were withdrawn or canceled. Over the last 18 months, staff has had ongoing discussions on the potential use of the southeast corner of this site (approximately 3 acres) for a 30,000 sf. grocery store. Additionally, earlier this year, staff has had conversations with a developer on the potential of a market rate housing project on a portion of the property. While both parties have expressed an interest in portions of i3'Iission: Ensuring an attractive, clean, safe, inclusive coinnninitj' that enhances the qitaliti of life for all people and preserves the public trust IkYA I Mk"A (I] 1IiI L1OkYA - IAI!JLI] 3I1 O)1 the property, neither have sufficiently demonstrated that their development concepts are financially feasible. Proposal by Ebert Construction for a Commercial Storage Use at 57th & Logan: Attached is a proposal by Ebert Construction to acquire approximately 2 acres within the northern portion for the construction of a four story 112,000 sf. commercial storage building. The site plan illustrates the positioning of the building to the south of Outlot A, presently the location of the MPCA' s monitoring wells for the ongoing groundwater and vaper investigation of contamination caused by a former dry cleaning operation. Additionally, Ebert Construction has indicated they would coordinate on-site storm water management with the planned development of the southern portion of the 57th & Logan site. The proposed purchase price is $346,000 which is approximately $4.00 per sf. The developer has indicated that their proposal does not involve any financial assistance, noting that they have discussed this development with the original environmental engineer employed by the EDA (Scott Tracy) and the original clean up contractor (John Hink), and that any remaining environmental work to be done on this site will not affect their offer of $346,000. An architectural rendering of the proposed building illustrates the quality of their construction and building materials which will meet the architectural guidelines established by the EDA for the Shingle Creek Crossing Development. Attached for your reference is a copy of the tax and value information of a similar four story commercial storage building located in the northeast corner of Douglas Ave. and Hwy 55 in Golden Valley. This project was referenced in City's previous consideration of an approval for a 1.62 acre site adjacent to the Regal Theater and has been identified as a comparable development. The valuation of this building is $5.3 M. The projected closing date is identified as on or before December 29, 2017. Policy Issues: Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA's Targeted Redevelopment Strategy for the 57th & Logan Site? Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57 th& Logan Avenue site? Strategic Priorities: Targeted Redevelopment Mission: Ensuring ni; uflI?!ctil'e, clean, safe, inclusive conumnnity that enhances the quality of life for all people and preserves the public trust Ph (763) 496 7844 July 28, 2017 Gary Eitel City of Brooklyn Center 6301 Single Creek Parkway Brooklyn Center, MN 55430-2199 RE: 57th Ave N & Logan Gary Eitel: We are pleased to present this offer to purchase. Purchaser: Ebert Construction DBA (E&R Investments LLC) 23350 County Road 10 Corcoran, MN 55357 Phone 763-498-7844 Seller: Economic Development Authority, City of Brooklyn Center. Property: 1950 57th Ave. N, Brooklyn Center, MN - north 1/2 / approx. 2 acres Purchase Price: $346,000 - Three Hundred Forty Six Thousand and no/I00 Initial Earnest Money: $50,000.00 to be deposited with escrow agent, Commercial Partners Title upon the execution of a purchase agreement. The Earnest Money shall be credited against the Purchase Price at Closing. A Conditions to Purchase: The Purchaser shall have a period One Hundred Eighty (180) days from the date of a Fully executed purchase agreement to satisfy or waive the following Conditions to Closing: (i)Purchaser obtaining a satisfactory environmental study & report. (ii)Purchaser obtaining satisfactory soil tests at purchasers expense. (no constructive damage) (iii)Purchaser receiving approvals to construct a multi story self storage building. (iv)Purchaser accepting all environmental reports and entitlements to construct the proposed building without extraneous environmental clean-up / approvals. (v)Purchaser reviewing and accepting title insurance commitment. (vi)Purchaser reviewing and accepting Seller's Information as defined below. Purchaser must satisfy or waive the above Conditions to Purchase within the time period of the date of the Purchase Agreement. If, despite Purchaser's best efforts, Purchaser is unable to satisfy or waive the above Conditions to Purchase. Purchaser shall have the right to extend the Condition Date by an additional Sixty (60) days. Defined as applications with environmental agencies, or the City for development. In no event shall the Purchase Agreement be terminated if Purchaser is still actively pursuing and waiting on City schedules for final review permits or approvals (planning commission, EDA, City Council) If Purchaser does not send Seller a written notice of Purchaser's waiver of the Conditions to Purchase, or right to extend, the purchase agreement shall be deemed terminated, Purchaser's Earnest Money shall be returned to Purchaser and the parties shall have no further rights or obligations to each other. Seller shall cooperate with and reasonably aid Purchaser in the satisfaction of the aforementioned contingencies. Seller Information: Within Thirty (30) days of execution of the purchase agreement, Seller shall provide Purchaser with the following: (i) All information Seller has related to the conditions of the site including environmental and soil conditions. Seller will provide Purchaser with copies of any reports previously obtained or information previously received, including without limitation any information or reports of any governmental agency concerning the property that are in the Seller's possession or control. (ii) A copy of any current survey, engineering drawings or plats. r bertconst.co (iii) Copies of all architectural drawings and plans previously prepared for the site. Closing Date: On or before December 29th, 2017. Title Inspection: Within fifteen (15) days of the execution of a purchase agreement, Seller will provide Purchaser a title insurance commitment. It will be the Purchaser's responsibility for any owner's policy of title insurance and associated premium. Purchaser will have thirty (30) days after receipt of the title insurance commitment to notify Seller of any objections to title and Seller shall have sixty (60) days to cure any defects. Seller Warranties: Seller warrants to Purchaser at the time of execution of the purchase agreement and upon Closing that the following are true and correct: 1)Seller is in good standing and has all the appropriate authority. 2)Property is in full compliance with all applicable codes, laws and orders. 3)Convey good and marketable title, 4)No action or litigation pending. 5)No leases, easements, options or right of first refusal exist. 6)Cooperation with Purchaser in obtaining any necessary approvals. 7)Seller will locate and cap all wells located upon property. 8)No environmental issues other than those that are disclosed. Real Estate Taxes: Real estate taxes payable in the year of closing shall be prorated between the Seller and Purchaser. All prior years paid in full by Seller. Assessments: Seller shall pay all levied, pending and/or deferred special assessments at Closing. Agreement: Prior to Closing, the Purchaser may assign the obligations of the purchase agreement to an affiliate of Purchaser with sufficient financial ability to Close on the Purchase. Brokerage: None SIGNATURE PAGE FOLLOWS www.ebertconst.com gql This letter is intended to be an expression of interest by the parties signing or accepting this letter to the transaction herein. Notwithstanding anything to the contrary, in no event shall this letter be deemed to be or constitute a binding contract agreement or other legally enforceable obligation between said persons or entities as to such matters. Upon signing of this letter agreement, the parties agree to negotiate the terms of a binding purchase agreement. Sincerely, Greg Hayes VP Real Estate & Development Purchaser: Seller: Ebert Construction Economic Development Authority City of Brooklyn Center, MN By: By: Its: Vice President Its: Date: July 28, 2017 Date: r bertco.com J I 00 -N. L * I j LLJ I N 3AV NVDO1 EDN HN I H1= INLLI Lu Ln I I I I Ii _ I //I / I / 0 46 o -uj eLI oJOeNECc = 0 H NNEE C-) ci)EC- Cci) ci)1.Iii1 J IL.0 IC] ---- r"i ^-j IC N II/ EJ 1 IL UJ -oU) C')— 00wa: LUa: wLL 0200 UJI 0,0 to zi; alvo 02 z Ii 00)0z -jw> Cl)2LUH U) H H2LU 20 >-L1I-zLU —J I-iZU)0 (I)U)a: coa: 2LULUa:0LU0 —J > z flN]A' NVO E 90 _ • '1 . {W I H fl, '•'•'( •i\\ 0j ' H ; (0 \ // j \ A A I A- N • I \\ —\I N I_i UT N209: A r LOT 3 • •(A * A \ '\\ I • LLss 1A -$ Ad&,,* 1912 TA 57IHA 1 I No - Saa5834 _!3I3_*II * I / '71LI U'II PEEL IMINA AW PLA T AIVORTHISOMOOK CENTER 2ND ADDITION / AA/fl"///,/ UTi' Outlot A \-•37,074+f SF;i4 5027 O.85/ Ao I7j. SW50'26% 255.87 /Add-., lila 5710 A,a N LuI A ,''N BLOCK 1 LOT I 319,210/ SF \' 7.32/Ac ssoi if LLW S I IPROPOSED DEDICATED DINHINSOCE AND UTILITY EASEMENTS I IPROPOSED DRAINAGE UTILITY VACATION IPROPOSED DEDICATION OF LOGAN AVE F PROPOSED DEDICATiON OF 571H AVE /' I 1EXISTING ELECTRIC UTILIIi EASEI.IENT //I/I, I / -' / •/ / /#>' \ I I / 44 \ ;ai I 5TH N U :NR H ----------------- I— I 2 a 8 HII IIU lilt 8 88 8 ii .c]IIIJ tPt8;i 1fl 8il 88ffl'- 8 88 Ipittft 1I 8 8 8 8 8 llfl ' 8a 9 TV \\ N:;:; - ± ii ift H 0 4 2 8 IIi'i J 8 : I Al "__l / / I/8 A8 8 8 • : r - a ii II: Hennepin County Property Map Date: 8/8/2017 'lit •__ - •1 I!, ii [1 I . __- • CIL. lh(Ir' - 1 inch 200 feet PARCEL ID: 3311821230013 OWNER NAME: Lock Up Golden Valley Lic PARCEL ADDRESS: 6250 Olson Memorial Hwy, Golden Valley MN 55422 PARCEL AREA: 1.53 acres, 66,561 sq ft A-T-B: Abstract SALE PRICE: $900,000 SALE DATA: 05/2014 SALE CODE: Vacant Land ASSESSED 2016, PAYABLE 2017 PROPERTY TYPE: Industrial-Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $5,357,000 TAX TOTAL: $216,040.85 ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Industrial-preferred HOMESTEAD: Non-homestead MARKET VALUE: $5,357,000 Comments: 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 notsui table for legal, engineering or surveying purposes. Hennepin County shall not belisbie forany damage, injury or loss resulting from this data. COPYRIGHT ©HENNEPIN COUNTY 2017 EDA Agenda Item 4 a August 28, 2017 Background On August 14, 2017, City Council/EDA Work Session included a discussion on an option for the EDA to enter into a Letter of Intent with Ebert Construction for the commercial development of approximately 2 acres of the northern portion Lot 1, Block 1, Northbrook Center 2nd Addition (the 57th & Logan site) for a four story, 112,000 sf. commercial storage building. The consensus the EDA was a favorable response to the following policy issues: Does the EDA believe that the development plan submitted by Ebert Construction is compatible with the EDA’s Targeted Redevelopment Strategy for the 57th & Logan Site? Does the EDA wish to proceed with a Letter of Intent and Purchase Agreement with Ebert Construction for the conveyance of a portion of the 57th & Logan Avenue site? 2006, a Letter of Intent with the Steiner Development Group for a mixed use commercial & residential development. 2014, a Letter of Intent with Told Development for 5 potential commercial sites with an architectural theme similar to the Shops of Wedgwood in Maple Grove to distinguish the commercial character of the project Proposal by Ebert Construction for a Commercial Storage Use at 57th & Logan: Ebert Construction proposes to acquire approximately 2 acres within the northern portion for the construction of a four story 112,000 sf. commercial storage building. The site plan illustrates the positioning of the building to the south of Outlot A, presently the location of the MPCA’s monitoring wells for the ongoing groundwater and vaper investigation of contamination caused by a former dry cleaning operation. The proposed purchase price is $346,000 which is approximately $4.00 per sf. and provides for the developer to assume any remaining environmental corrective actions . Resolution Approving and Authorizing the Execution of Letter Intent to Sell Property at 1950 57th Avenue North The City Attorney has prepared a resolution authorizing the EDA staff and officials to negotiate the terms of a purchase agreement for review and approval by the EDA after conducting a public hearing on this proposed sale. The terms of the purchase agreement will include the necessary planning, zoning, and subdivision actions, including site and building plan approval; a C-2 PUD rezoning; and subdivision/land division necessary to create this 2 acre commercial lot. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of the Resolution Approving and Authoring the Execution of a Letter of Intent to Sell Property at 1950 57th Avenue North