HomeMy WebLinkAbout2019 02-11 EDAPE conomic Development
Authority
City Hall - Council Chambers
February 11, 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 entrance of the council
chambers.
a.Approval of Minutes
- Approval of minutes from the January 14, 2019
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.
4.Commission Consideration Items
a.Resolution Terminating a Preliminary Development A greement with T hor
L iving, L L C, and Approving a P reliminary Development Agreement with
Coalition Development, L L C.
- Motion to approve a resolution terminating a Preliminary Development
Agreement with Thor Living, LLC, and approving a preliminary
development agreement with Coalition Development, LLC
5.Adjournment
ED A ITEM MEMOR ANDUM
DAT E:2/11/2019
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
01/14/19 -1- DRAFT
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 14, 2019
CITY HALL – COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Mike Elliott at 10:20 p.m.
2. ROLL CALL
President Mike Elliott 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 Graves seconded to approve the Consent
Agenda, and the following consent item was approved:
3a. APPROVAL OF MINUTES
December 10, 2018 – Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2019-01 ELECTING OFFICERS FOR THE ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN
CENTER
Mr. Boganey stated EDA Officers are elected on an annual basis, and previous officers continue
to serve in their position until replaced. He added there is currently a vacancy for the position of
EDA President. He noted the EDA can vote to elect a President or elect all Officers in one
motion.
01/14/19 -2- DRAFT
Commissioner Graves moved and Commissioner Butler seconded to nominate Mike Elliott for
President of the Brooklyn Center Economic Development Authority.
Motion passed unanimously.
Commissioner Butler moved and Commissioner Graves seconded to approve RESOLUTION
NO. 2019-01 Electing Officers for the Economic Development Authority in and for the City of
Brooklyn Center.
Motion passed unanimously.
4b. RESOLUTION NO. 2019-02 OPTING NOT TO WAIVE LIMITED TORT
LIABILITY FOR 2019
Mr. Boganey reviewed this item, and stated the Resolution protects the EDA to continue to be
protected from excessive liability and provides statutory protection.
Commissioner Graves moved and Commissioner Ryan seconded to approve RESOLUTION NO.
2019-02 Opting not to Waive Limited Tort Liability for 2019.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Ryan moved and Commissioner Graves seconded adjournment of the City
Council/Economic Development Authority Work Session at 10:32 p.m.
Motion passed unanimously.
ED A ITEM MEMOR ANDUM
DAT E:2/11/2019
TO :C urt Boganey, C ity Manager
T HR O UG H:N/A
F R O M:Meg Beekman, C ommunity Development Director
S UBJ EC T:R esolution Terminating a P reliminary Development Agreement with T hor Living, LLC , and
Approving a P reliminary Development Agreement with C oalition Development, LLC .
Background:
O n November 26, 2018, P atrick C ruikshank of T hor Living, LLC , pres ented a concept proposal for a multi-
family development on three EDA-owned lots at 61s t Avenue N and Brooklyn Boulevard, just south of the
S anc tuary development. T he concept proposed 80-110 units of workforce hous ing units . T he November 26,
2018, EDA report is attac hed with detailed information about the concept proposal.
O n Dec ember 10, 2018, the EDA entered into a P reliminary Development Agreement (P DA) with T hor Living,
LLC . T he P DA allowed T hor Living to explore the development of the projec t, and would have expired on
July 30, 2019, and provided T hor Living with the time to c onduct due diligenc e and put together a financial
s ubsidy applic ation to the C ity for the development.
Attached to this report is the December 10, 2018, report to the EDA, along with related concept drawings and
s ite layout for the propos ed development c onc ept.
O n January 21, 2019, the owners of T hor Living, LLC , R avi Norman and R ichard C opeland sent a letter to
the EDA reques ting that the P DA be terminated. T he company has s inc e been dissolved and the development
s taff of T hor Living, LLC have parted ways with the c ompany, branching off and creating their own
development company, C oalition Development, LLC . T he owners of T hor Living indic ated in their letter that
they are transferring any exis ting development rights that T hor Living had to C oalition Development.
C oalition Development, LLC is now reques ting to enter into a P reliminary Development Agreement with the
EDA to take over the development project as originally propos ed. T he terms of the agreement would remain
the same. C oalition Development would have exc lusive rights to prepare a development plan and financ ial
s ubsidy applic ation for the EDA's cons ideration.
Budget Issues:
T here are no budget is s ues to cons ider at this time.
S trategic Priorities and Values:
Targeted R edevelopment
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION TERMINATING A PRELIMINARY DEVELOPMENT
AGREEMENT WITH THOR LIVING, LLC AND APPROVING A
PRELIMINARY DEVELOPMENT AGREEMENT WITH COALITION
DEVELOPMENT, LLC
WHEREAS, on November 26, 2018, the Economic Development Authority of
Brooklyn Center, Minnesota (the “Authority”) received a proposal from Thor Living, LLC, a
Minnesota limited liability company (the “Former Developer”) regarding the development of land
owned by the Authority for the creation of a multifamily workforce housing apartment building,
which proposal contemplated the Authority’s conveyance of the Authority Property to the Former
Developer; and
WHEREAS, the Authority’s Board of Commissioners reviewed the Former
Developer's development concept and on December 10, 2018, entered into a Preliminary
Development Agreement to allow the Former Developer to negotiate the purchase of the Authority
Property, conduct due diligence, obtain the necessary financing and commitments to construct the
development, apply for and gain approval from the City for the development and any necessary
public subsidy; and
WHEREAS, on January 21, 2019, the Authority received a letter from the owners
of the Former Developer firm, requesting that the Preliminary Development Agreement be
cancelled and further indicating that the Former Developer was transferring any ongoing
development projects to Coalition Development, LLC, a Minnesota limited liability company
(“Developer”); and
WHEREAS, the Developer has requested to enter into a Preliminary Development
Agreement with the Authority under the same terms and conditions as the Former Developer, and
for the same development concept; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Economic Development Authority of Brooklyn Center, Minnesota (the “Board), as follows:
1. The EDA hereby approves the Preliminary Development Agreement substantially in
accordance with the terms set forth in the form presented to the Board, together with any related
documents necessary in connection therewith (collectively, the "Preliminary Development
Documents") and hereby authorizes the President and Executive Director to negotiate the final
terms thereof and, in their discretion and at such time as they may deem appropriate, to execute the
Preliminary Development Documents on behalf of the Authority, and to carry out, on behalf of the
Authority, the Authority’s obligations thereunder.
2. The approval hereby given to the Preliminary Development Documents includes
approval of such additional details therein as may be necessary and appropriate and such
modifications thereof, deletions therefrom and additions thereto as may be necessary and
Resolution No.
appropriate and approved by legal counsel to the Authority and by the officers authorized herein to
execute said documents prior to their execution; and said officers are hereby authorized to approve
said changes on behalf of the Authority. The execution of any instrument by the appropriate
officers of the Authority herein authorized shall conclusive evidence of the approval of such
document in accordance with the terms hereof. In the event of absence or disability of the officers,
any of the documents authorized by this Resolution to be executed may be executed without
further act or authorization of the Board by any duly designated acting official, or by such other
officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf.
3. Upon execution and delivery of the Preliminary Development Documents, the officers
and employees of the Authority are hereby authorized and directed to take or cause to be taken
such actions as may be necessary on behalf of the Authority to implement the Preliminary
Development Documents.
4. The Board hereby determines that the execution and performance of the Preliminary
Development Documents will help realize the public purposes of the Act.
February 11, 2019
Date Mayor
ATTEST:
City Clerk
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.
199559v1
PRELIMINARY DEVELOPMENT AGREEMENT
PRELIMINARY DEVELOPMENT AGREEMENT dated this 11th day of February,
2019, by and between the Economic Development Authority of Brooklyn Center, 6301 Shingle
Creek Parkway, Brooklyn Center, MN 55430 (the “Authority”) and Coalition Development
LLC, (the “Developer”).
WHEREAS, the Authority is the fee owner of property located in the City of Brooklyn
Center (the “City”) at 6101, 6107 Brooklyn Blvd and 3600 61 st Ave North (the “Property”)
which Property the Authority is willing to consider selling for purposes of development of an
approximately 80-110 unit multi-family workforce housing apartment building (the
“Development”);
WHEREAS, the Developer desires to explore the possibility of acquiring the Property
together with additional adjoining private property (“Additional Property”) to combine with the
Property (together, the “Property” and “Additional Property” are referred to herein as the
“Development Property”) for development of the Development;
WHEREAS, the Authority’s Board of Commissioners has reviewed the Development
concept and is interested in development of the Property as proposed by the Developer;
WHEREAS, if the Developer is successful in obtaining the necessary financing and
commitments to construct the Development and agrees to construct the Development, then the
Authority would be willing to enter into an agreement with the Developer for the conveyance of
the Property and construction of the Development at a mutually agreed upon price together with
other negotiated conditions for conveyance of the Development Property;
WHEREAS, Developer has requested that the Authority execute this Preliminary
Development Agreement (“PDA”) agreeing to work solely with Developer during the term
hereof on negotiations for acquisition of the Development Property by Developer to provide
Developer with time to conduct review of the Development Property, obtain financing for the
proposed Development, prepare appropriate plans for the Property, obtain necessary City
approvals for the Development, and negotiate with the Authority on an agreement for the sale of
the Development Property;
WHEREAS, the Authority is willing to enter into this PDA for such purposes upon the
terms and conditions provided herein.
NOW THEREFORE the parties agree as follows:
1. In consideration of the processing of the Development under the terms of this
PDA, the Authority agrees that it will negotiate and work solely with Developer on negotiations
for sale of the Property to Developer for Developer’s proposed Development until July 30, 2019
(“Term”).
2. During the Term of this PDA, Developer agrees to use its best efforts to:
199559v1 2
(i) complete site planning and site engineering;
(ii) complete architectural concept plans;
(iii) submit application for a Public Subsidy request and all necessary financial
documentation needed for review;
(iv) submit application, and receive all necessary City approvals related to the
subdivision and development of the Development Property;
(v) secure construction financing necessary to construct a project consistent with the
terms of this PDA;
(vi) negotiate a Contract for Private Development for acquisition and development of
the Development Property and construction of an approved Development.
3. During the Term of this PDA, Developer and the Authority agree to use their best
efforts to resolve property acquisition issues related to the Development Property and to attempt
to bring fruition to the proposed Development through a Contract for Private Development for
conveyance of the Property and development of the Development Property; provided, however,
that the Developer acknowledges that the Authority will not exercise the power of eminent
domain with respect to the acquisition of any property in connection with the Development or
this PDA.
4. Developer may assign this PDA to an affiliate or Authority approved successor
upon written notification and approval by the City.
5. The Developer will provide the City with a written progress report on the status of
the goals identified in Paragraphs 2 and 3 every 30 days following the date of this PDA.
6. This PDA represents the entire understanding of the parties regarding the
Development Area and any amendment to this PDA shall be in writing and be executed by both
parties.
7. Both Parties are aware of and acknowledge that contingencies and unknowns
presently exist, any one or more of which could make the Development cost prohibitive, and that
both parties are expending sums of money and time with full knowledge of the risks involved
and that neither party shall be liable for any of the other party’s expenses in any event, except (i)
as otherwise provided pursuant to a separate agreement between the parties, (ii) in connection
with an application for a Public Subsidy, or (iii) pursuant to required fees or costs related to
applications made to the City or under City Code.
8. The parties agree that this PDA is not intended to bind the parties to enter into an
agreement for the sale and acquisition of the Property, but is merely intended to set forth the
parties’ intent to proceed with the process of (i) negotiating an agreement for the sale of the
Development Property and development of the Development Property and (ii) resolving certain
pre-development issues related to the Development Property and Development.
9. No approval given by the Authority hereunder or in connection herewith shall be
deemed to constitute an approval of the Development for any purpose other than as stated herein
and the process outlined in this Agreement shall not be deemed to supersede any concept review,
199559v1 3
conditional use permit, vacation, subdivision, or other zoning or planning approval process of the
Authority or the City relative to the development of real estate.
10. This PDA may be amended by mutual written agreement of the parties.
11. If any portion of this Agreement is held invalid by a court of competent
jurisdiction, such decision shall not affect the validity of any remaining portion of this
Agreement.
12. Notice, demand, or other communication from one party to the other shall be
deemed effective if sent by certified mail, postage prepaid, return receipt requested or delivered
personally to a party at its address in the first paragraph of this Agreement, or at such other
address as such party may designate in writing to the other party.
13. The Authority and Developer agree that this Agreement is intended to be
preliminary in nature and will be superseded by one or more definitive contracts, mutually
satisfactory to the Authority and the Developer, which shall be negotiated, approved and
executed by the Authority and the Developer and no obligation regarding the conveyance of
property or provision of any Public Subsidy shall exist with respect to the Development prior the
approval and execution of such definitive contract(s).
IN WITNESS WHEREOF , the Authority has caused this Agreement to be duly
executed in its name and behalf and the Developer has caused this Agreement to be duly
executed in its name and behalf on or as of the date first above written
ECONOMIC DEVELOPMENT AUTHORITY
OF BROOKLYN CENTER, MINNESOTA
By__________________________________
Its President
By__________________________________
Its Executive Director
Coalition Development, LLC
By__________________________________
Its _________________________________
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Preliminary Development
Agreement Transfer
October 8, 2018
Review
EDA Meeting, February 11, 2019
Meg Beekman, Community Development Director
Project Update
•December 10,2018 -EDA Entered into PDA with Thor Living
•January 21,2018 –Thor Living is dissolved and request for
termination of PDA is requested
•Coalition Development,LLC –Taking over Thor Living’s
development projects
•Request is to terminate PDA with Thor Living and approve PDA with
Coalition Development
2
3
•6101 Brooklyn Blvd
•6107 Brooklyn Blvd
•3600 61st Ave N
4
5
Project Proposal
•Four -story, 80-110-unit multi-
family development
•Mix of studios, to 3-bedroom
units
•Mix of underground and surface
parking; Ratio of 1 stall/bedroom
•Affordable at 60-80% AMI
•Anticipated Rents:
Studios:$940 1-bdrm:$1260
2-bdrm:$1568 3-bdrm:$1755
Financing –Current Estimate
•Total Project Costs:$14,656,094
•Land Acquisition (For Four Parcels):$595,000
•Soil Correction and Demolition:$200,000
•Total Soft Costs:$3,052,344
•Total Hard Costs:$10,808,750
•TIF Requested (GAP):$2,685,000
•Estimated Taxes Generated:$234,000
•Current Taxes Generated:$3,018
6
Process
•PDA –Expires July 30,2019
•Sale of EDA-owned property
•Purchase Agreement
•EDA (Public Hearing)
•Planning Case Application:Preliminary and Final Plat,Rezoning,possible PUD,Site and Building
Plan Review
•Planning Commission (Public Hearing)
•City Council Review
•Public Subsidy Request
•Review by public finance consultants
•Formal Review by City/EDA (Public Hearing)
•Development Agreement
7
Recommendation
•Motion to approve a resolution terminating a Preliminary
Development Agreement with Thor Living, LLC and approving a
Preliminary Development Agreement with Coalition Development,
LLC
8