HomeMy WebLinkAbout2019 01-14 EDAPE conomic Development
Authority
Council Chambers City Hall
J anuary 14, 2019
AGE NDA
1.Call to Order
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is
available to the public. The packet ring binder is located at the podium.
2.Roll Call
3.Approval of Consent Agenda
The following items are considered to be routine by the Economic Development Authority (E D A)
and will been acted by one motion. There will be no separate disc ussion of these items unless a
Commissioner so requests, in whic h event the item will be removed from the c onsent agenda
and considered at the end of Commission Consideration I tems.
a.Approval of Minutes
- Motion to approve minutes from the December 10, 2018 meeting
4.Commission Consideration Items
a.Resolution Electing Officers for the E conomic Development Authority in and
for the City of B rooklyn Center
- Approve Resolution Electing Officers for the Economic Development
Authority in and for the City of Brooklyn Center
b.Resolution Opting not to Waive L imited Tort L iability for 2019
- Motion to approve resolution opting not to waive limited tort liability for
2019
5.Adjournment
ED A ITEM MEMOR ANDUM
DAT E:1/14/2019
TO :C urt Boganey, C ity Manager
T HR O UG H:Dr. R eggie Edwards , Deputy C ity Manager
F R O M:Barb S uciu, C ity C lerk
S UBJ EC T:Approval of Minutes
Background:
S trategic Priorities and Values:
O perational Exc ellenc e
12/10/18 -1-
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
DECEMBER 10, 2018
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 9:58 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Marquita Butler, April Graves, and Dan Ryan.
Commissioner Kris Lawrence-Anderson was absent and excused. Also present were Executive
Director Curt Boganey, Deputy Executive Director Reggie Edwards, Community Development
Director Meg Beekman, City Attorney Troy Gilchrist, and Mary Mullen, TimeSaver Off Site
Secretarial, Inc.
3. APPROVAL OF CONSENT AGENDA
Commissioner Ryan moved and Commissioner Butler seconded to approve the Consent Agenda,
and the following consent item was approved:
3a. APPROVAL OF MINUTES
1. December 3, 2018 – Special Meeting
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT
AGREEMENT WITH THOR LIVING
In consideration of audience members in attendance, the agenda was reordered and Item 4b was
considered prior to Item 4a.
4b. RESOLUTION NO. 2018-18 APPROVING A PRELIMINARY DEVELOPMENT
AGREEMENT WITH CENTRA HOMES, LLC
12/10/18 -2-
Community Development Director Meg Beekman introduced this item. She stated Centra
Homes LLC is seeking a Preliminary Development Agreement for 35 single-family homes. She
added the subdivision was returned to the Economic Development Authority (EDA). She noted
two adjacent properties are proposed for partial acquisition as part of this project, and no
contribution is required from the City or EDA.
Ms. Beekman showed examples of Centra model homes in other developments. She added the
models that will be available in Brooklyn Center have not been identified.
Ms. Beekman stated City Staff recommends approval of the Preliminary Development
Agreement with Centra Homes LLC.
Commissioner Ryan asked whether a PUD will be required due to smaller lot sizes. Ms.
Beekman stated a PUD might be necessary but City Staff will find the easiest and best route to
move forward with the subdivision.
Ms. Beekman introduced Tate Baxter, Centra Land Team, and Dale Wills, Owner and President
of Centra Homes.
President Willson commend the Centra team for pursuing this property for their development.
He added there have been many interested developers and potential projects, but the Centra
proposal will utilize the property in the most fitting and appropriate fashion.
Commissioner Butler moved and Commissioner Ryan seconded to adopt RESOLUTION NO.
2018-18 Approving Preliminary Development Agreement with Centra Homes, LLC.
Motion passed unanimously.
4a. RESOLUTION NO. 2018-17 APPROVING A PRELIMINARY DEVELOPMENT
AGREEMENT WITH THOR LIVING – continued
Ms. Beekman introduced this item. She added THOR Living, LLC, is seeking a Preliminary
Development Agreement (PDA) for a proposed four-story, 80-110-unit multi-family
development that will be affordable to residents at 60-80% of the Area Median Income (AMI).
The developer intends to purchase the land from the EDA, and TIF funding is being requested
for a funding gap of approximately $2.6 million.
President Willson asked whether City Staff are aware of any environmental issues, as the
demolition estimate seems high. Ms. Beekman stated the estimate includes the demolition of a
home, and while the estimate may seem high, no soil borings have been completed. She noted
the Sanctuary development did not have soil issues.
12/10/18 -3-
President Willson asked whether there is a timeline for the development. Ms. Beekman stated
the PDA will expire July 30, 2019, and no milestones have been established. She added
financing is the biggest component at this point.
President Willson asked whether ownership of the property will be retained by the EDA until all
issues are resolved. Executive Director Boganey confirmed this. He added, due to the public
subsidy component, a formal application and review by the City and EDA will be required.
Ms. Beekman stated City Staff recommends approval of the request for a Preliminary
Development Agreement with Thor Living, LLC.
Commissioner Ryan moved and Commissioner Butler seconded to adopt RESOLUTION NO.
2018-17 APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT WITH THOR
LIVING, LLC.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Ryan moved and Commissioner Butler seconded adjournment of the City
Council/Economic Development Authority Work Session at 10:30 p.m.
Motion passed unanimously.
ED A ITEM MEMOR ANDUM
DAT E:1/14/2019
TO :C urt Boganey, C ity Manager
T HR O UG H:R eggie Edwards, Deputy C ity C lerk
F R O M:Barb S uciu, C ity C lerk
S UBJ EC T:R esolution Elec ting O ffic ers for the Ec onomic Development Authority in and for the C ity of
Brooklyn C enter
Background:
Minnesota S tatute 469-096 provides that n Ec onomic Development Authority s hall elect a pres ident, treasurer,
and s ecretary on an annual bas is . EDA R es olution No. 87-06 also s tates in Artic le I I, S ec tion 7, that the
pres ident, vic e-pres ident, s ecretary, treasurer, and assistant treas urer s hall be elec ted at the annual meeting of
the Authority and s hall hold office for one year or until s uc cessors are elec ted and qualified.
T he attac hed res olution elects such positions for the Economic Development Authority.
Budget Issues:
T here are no budget is s ues to cons ider.
Commissioner introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO. _______________
RESOLUTION ELECTING OFFICERS FOR THE ECONOMIC
DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA
WHEREAS, Minnesota Statutes Section 469.096 provides that an economic
development authority shall elect a president, treasurer, and secretary on an annual basis.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority of Brooklyn Center, Minnesota, that the Authority hereby elects the following officers
to serve through December 31, 2019, or such later date as their successors are elected and
qualified:
President/Treasurer Mike Elliott
Vice-President
Assistant Treasurer Finance Director
Secretary Community Development Director
January 14, 2019
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.
ED A ITEM MEMOR ANDUM
DAT E:1/14/2019
TO :C urt Boganey, C ity Manager
T HR O UG H:N/A
F R O M:Nathan R einhardt, F inance Director
S UBJ EC T:R esolution O pting not to Waive Limited Tort Liability for 2019
Background:
Each year the EDA must c hoose whether to waive tort liability limit protec tions of Minnesota S tatutes 466.04
as part of the ins urance policy renewal application process. M.S . 466.04 states that the maximum liability for a
city for any claim is $500,000 with an aggregate maximum of $1,500,000 per incident. In pas t years the EDA
has chos en not to waive the liability limits and the regular premium for ins urance has covered all claims.
If the EDA were to waive the limits set by statute, it would be prudent to purchas e additional insuranc e
coverage to cover possible higher awards in liability c laims . P remiums for s uc h insuranc e would be
approximately $3,500 per year.
Budget Issues:
T he 2019 budget anticipates leaving the no waiver option in place for 2019 and has anticipated ins urance
premiums bas ed on that no waiver option. Waiving the statutory limits would require that approximately $3,500
in additional premium c os ts be alloc ated for 2019 and in each succ eeding year.
S trategic Priorities and Values:
S afe, S ecure, S table C ommunity
Commissioner introduced the following resolution and moved
its adoption:
EDA RESOLUTION NO._______________
RESOLUTION OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2019
WHEREAS, the Economic Development Authority of the City of Brooklyn Center
has an option to waive its protection under the tort liability limitations contained in Minnesota
Statutes 466.04; and
WHEREAS, the statutory tort limit for 2019 is $500,000 per individual with an
aggregate limit of $1,500,000 per incident; and
WHEREAS, the Economic Development Authority of the City of Brooklyn Center
has not opted to waive its rights to limited tort liability in past years and is required to make a
declaration of its intention every year.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
of the City of Brooklyn Center, Minnesota, that the Authority does not waive the monetary limits on
municipal tort liability established by Minnesota Statutes 466.02 for 2019.
January 14, 2019
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.
LIABILITY COVERAGE – WAIVER FORM
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT)
must complete and return this form to LMCIT before the member’s effective date of coverage. Return
completed form to your underwriter or email to pstech@lmc.org.
The decision to waive or not waive the statutory tort limits must be made annually by the
member’s governing body, in consultation with its attorney if necessary.
Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits
to the extent of the coverage purchased. The decision has the following effects:
• If the member does not waive the statutory tort limits, an individual claimant could recover no more than
$500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single
occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits
would apply regardless of whether the member purchases the optional LMCIT excess liability coverage.
• If the member waives the statutory tort limits and does not purchase excess liability cove rage, a single claimant
could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are
only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit i s
$2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply
would also be limited to $2,000,000, regardless of the number of claimants.
• If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could
potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for
a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage
purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
LMCIT Member Name: __________________________________________________________________________
Check one:
o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. §
466.04.
o The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to
the extent of the limits of the liability coverage obtained from LMCIT.
Date of member’s governing body meeting: __________________________________________________________
Signature: _______ Position: _______________