Loading...
HomeMy WebLinkAbout2020 06-22 EDAPE conomic Development Authority V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-535- 8110 Access Code: 801 615 321 J une 22, 2020 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. 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 - Approve minutes from: May 11, 2020 EDA Meeting June 8, 2020 EDA Meeting 4.Commission Consideration Items a.Resolution A pproving a Preliminary Development A greement with C A lan Homes L L C - Motion to approve a resolution adopting a Preliminary Development Agreement between the Economic Development Authority of Brooklyn Center and C Alan Homes LLC 5.Adjournment Economic Development Authority DAT E:6/22/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :N/A BY:Barb S uciu, C ity C lerk S U B J E C T:A pproval of Minutes B ackground: I n accordance with M innesota S tate S tatute 15.17, the official records of all mee5ngs must be documented and approved by the governing body. S trategic Priories and Values: O pera5onal Excellence AT TA C H M E N TS : D escrip5on U pload D ate Type 5-11-2020 E DA M inutes 6/2/2020 Backup M aterial 05/11/20 -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 MAY 11, 2020 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Mike Elliott at 8:27 p.m. The meeting was conducted via Webex. 2. ROLL CALL President Mike Elliott and Commissioners Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were Executive Director Curt Boganey, Community Development Director Meg Beekman, and City Attorney Troy Gilchrist. 3. APPROVAL OF AGENDA AND CONSENT AGENDA 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. March 9, 2020 – Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2020-XX APPROVING THE ACQUISITION OF CERTAIN PROPERT LOCATED AT 7015 KYLE AVENUE N Community Development Director Meg Beekman reviewed the proposed acquisition of a single- family residential property at 7015 Kyle Avenue N that is currently occupied and was built in 1965. The property is zoned R-5 multi-family housing. The property is adjacent to St. Alphonsus Church on the north and east, and vacant EDA property to the west and south. The total acquisition price of $245,000 includes the purchase price of $240,000 and $5,000 for moving expenses. The seller can remove any items from the property and leave unwanted items in the home. If approved closing would take place on September 1, 2020. 05/11/20 -2- DRAFT Ms. Beekman stated, if approved, this will be a developable property when combined with the 2 adjacent EDA-owned lots. She added City Staff have had discussions with St. Alphonsus Church staff regarding potential uses of the property, and this is in its early stages. Commissioner Ryan asked whether the size of the parcel would make it suitable for one of the proposed triplex developments discussed during the Work Session. Ms. Beekman stated that could be a possibility, but this parcel is not being considered by that developer. She added it is advisable to have further discussions with St. Alphonsus Church before any decisions are made about the future use of the property. She noted medium to high- density residential use would be appropriate for the site. Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2020-__ Approving the Acquisition of Certain Property located at 7015 Kyle Avenue N. Motion passed unanimously. 4b. RESOLUTION NO. 2020-XX ADOPTING A SMALL BUSINESS EMERGENCY FORGIVABLE LOAN PROGRAM Ms. Beekman reviewed a proposed small business loan program, which the City Council discussed at length at their recent Work Session. She provided a review of the background leading to consideration of this loan program. She stated small businesses have been the most affected by business closures due to the peacetime emergency and “stay at home” order, and in particular, small businesses owned by women and minorities. She added State and Federal programs have been initiated to provide support for small businesses, but there are significant barriers for funding. She noted Brooklyn Center City Staff have made efforts to support small businesses, including outreach and engagement with local community organizations, as well as direct contact with local small businesses to offer staff assistance. Ms. Beekman stated cities are creating programs to fill the gap. She added Hennepin County recently added a support program for small businesses, structured similarly to the program that Brooklyn Center is considering. She noted the Brooklyn Center’s program will provide immediate emergency funds in the form of a maximum $3,000 forgivable no-interest loan with no payments for 1 year. Ms. Beekman stated, after additional consideration, City Staff has added a $30 fee to help cover administrative costs. She added applications would be open on May 5, 2020 and would be reviewed on a first come, first served basis, with approval based on whether eligibility requirements are met. She noted the program would remain open until the funds are expended or the EDA decides to terminate the program. Ms. Beekman stated City Staff recommends that the program be funded with $150,000 from the EDA fund. She added the City has contracted with consulting firms, including ACER, to facilitate this loan program, and they have provided suggestions related to reporting and tracking of demographics. She noted they are very supportive of the program. 05/11/20 -3- DRAFT Ms. Beekman stated City Staff recommends approval of the Resolution adopting a small business emergency forgivable loan program. Commissioner Graves asked whether City Staff could provide updates for the City Council if there are many businesses who apply for loans but are ineligible. She added she is in favor of this program. She expressed her appreciation for Ms. Beekman and City Staff, for their hard work and fast turn-around, and for working collaboratively to put this together. Commissioner Butler stated she supports the program. She thanked City Staff for being reactive to what is going on in the community. She expressed her appreciation for the efforts of City Staff and the work they do on behalf of the community. Commissioner Ryan thanked Ms. Beekman and City Staff for their hard work on this program. He urged Commissioners to reach out to legislators regarding availability of this type of funding, as the economic situation will exceed anything that the City itself can handle alone. President Elliott stated other cities around the country have added a mentorship component. He added they have been able to find retired people and others who serve as mentors for small businesses in this difficult time. He noted that is not included in tonight’s proposed Resolution but could be considered. He noted this program will do a lot to uplift local businesses. Commissioner Graves stated she likes the idea of a mentorship component. She added, however, the community partners will provide technical assistance and support. She noted she supports the involvement of the community partners. Commissioner Graves moved and President Elliott seconded to adopt RESOLUTION NO. 2020- XX Adopting a Small Business Emergency Forgivable Loan Program. Motion passed unanimously. 5. ADJOURNMENT Commissioner Graves moved and President Elliott seconded adjournment of the Economic Development Authority meeting at 9:04 p.m. Motion passed unanimously. Economic Development Authority DAT E:6/22/2020 TO :C ity C ouncil F R O M:C urt Boganey, City Manager T H R O U G H :M eg Beekman, C ommunity D evelopment D irector BY:J immy L oyd, Economic D evelopment Coordinator S U B J E C T:Res olu+on A pproving a P reliminary D evelopment A greement w ith C A lan H omes L L C B ackground: O n May 11, 2020 C Alan H o mes' co ncept plan was presented to the C ity C ouncil for C oncept Review. T he proposal was to develop two separate sites along B rooklyn B ouleva rd into 13 triplex units. T he pro posal included combining 8 E DA-owned lo ts into two separate development sites to allow for the develo pment. O ne site would be on the 6000 block o f B rooklyn B oulevard south of 61st Avenue N and the seco nd would be north o f 694, just north of Slim's restaurant. B ackground The E DA has been acquiring single family and undersized parcels along Brooklyn Boulevard for many years as part of a larger strategy to improve s afety by reducing and cons olida+ng access points, and to as s emble land for redevelopment into high density land uses . The 2040 Comprehensive P lan created an overlay dis trict along the corridor and re-guided most of the future land uses to neighborhood mixed use; allow ing medium dens ity residen+al and/or neighborhood-s erving commercial uses . The 2040 P lan also called for a comprehens ive land use s tudy for the corridor to coincide with the road recons truc+on plans as w ell as to create development standards that would create a more walkable, neighborhood-oriented development pa?ern. The Brooklyn Boulevard land use s tudy is underway, and a market analys is of the area in terms of feas ible land uses has been completed. O ne of the goals of the s tudy is to look at the E DA -ow ned sites , par+cularly thos e that are only as deep as a single family lot to determine how they could be redeveloped in a way that puts them back into produc+ve us e for the C ity. The E DA currently owns four proper+es located at the southwes t corner of 61st Avenue North and Brooklyn Boulevard, w hich total 1.55 acres. The E DA als o ow ns four proper+es on the wes t s ide of the 6900 block of Brooklyn Boulevard that total .88 acres in s iz e. The parcels w ere acquired between 1995 and 2018. 6000 Block 6900 Block The market analys is for thes e sites found that a mid-dens ity residen+al product such as row-homes or tow nhomes w ould be suitable for the sites , and that given their acces s cons traints they w ere likely not s uitable for retail. The market analysis did find that an office condo product could also be s uitable for the s ites, but that that market w ould not bear a s pecula+ve office development. D evelopment P lan The C ity has been approached by Terry Robertson and Curt Brekke with C A llan H omes , a local builder and remodeling company s pecializ ing in high-end single family homes . M r. Roberts on and M r. Brekke are interested in diversifying the focus of C A llan H omes and are seeking to develop both s ites with a s eries of tri-plexes which would be available for rent. Each tri-plex would consist of three units w ith tw o and three bedrooms. A n+cipated rents would range betw een $1,300/month up to $1,750 per month. They have indicated that each building w ould have the look and feel of a large, high quality single family home, with a combina+on of individual and s hared on-site ameni+es. I ni+al renderings of the propos ed tri-plexes are a?ached, as w ell as a narra+ve from the developer describing their project in more detail and s ite plans for each site. A s this is a concept review, the s ubmi?ed documents are early representa+ons of the project and have not been review ed in detail by s taff. The applicant is not seeking financial subsidy for the development. I f the project were to proceed a purchas e agreement w ould need to be nego+ated and purchase price for the land determined. S taff Review S taff w as able to provide an ini+al review of the concept which did not indicate any significant issues . A ny formal development proposal w ill be required to meet all stormwater s tandards as w ell as ingress/egres s and parking requirements. The project w ill also be required to conform to the des ign plans for the future recons truc+on of Brooklyn Boulevard. Conformance with City Policies The E DA has been acquiring property along Brooklyn Boulevard for decades w ith the intent of assembling it for higher and be?er us e as the transporta+on and land us e pa?erns of the corridor change. Brooklyn Boulevard is undergoing a complete reconstruc+on which will have an effect on the land us e pa?erns as acces s points are consolidated and the roadway is altered. W ith the adop+on of the 2040 Comprehensive P lan, the C ity adopted new future land use designa+ons for much of the Brooklyn Boulevard corridor, which included a new future land use designa+on of “Neighborhood Mixed Use (N-M U).” The N M U future land us e des igna+on contemplates an allowance of a mix of medium density res iden+al and/or commercial uses on a given s ite depending on its loca+on along the corridor. For example, commercial uses , with a pos s ible mix of hous ing, w ill likely converge around primary, signalized inters ec+ons , which offer be?er access and visibility; while medium dens ity residen+al us es will make up the balance between thes e primary nodes. The propos ed development project is in keeping w ith the goals of the corridor, is cons is tent with the adjacent s ingle family development, and provides a highes t and bes t us e for the affected E DA proper+es , s ome of w hich have been held by the City for many years . N ext S teps ALer reviewing the concept proposal the C ity C ouncil indicated an openness to the project. T he developer is now reques+ng a Preliminary D evelopment Agreement to allow them +me to conduct a review of the property, obtain financing for the project, prepare appropriate plans, obtain necessary C ity approvals for the development, and nego+ate with the E DA on an agreement for the sale of the Property. T he Preliminary D evelopment Agreement would expire on December 31, 2020. O nce the P DA is executed, the next step w ould be for the developer to s ubmit an applica+on for land use approvals , which would include preliminary and final plats of the tw o s ites and rez oning to allow the triplexes. The E DA and developer will als o need to nego+ate a purchas e agreement for the property, w hich w ould also require a public hearing and approval from the E DA prior to execu+on. B udget I ssues: There are no budget is s ues to consider at this +me. S trategic Priori$es and Values: Targeted Redevelopment AT TA C H M E N TS : D escrip+on U pload D ate Type C A lan P DA 6/3/2020 Backup M aterial Triplex A rchitectural P lans 6/3/2020 Backup M aterial Triplex Eleva+on 6/3/2020 Backup M aterial 6000 Block A erial 6/3/2020 Backup M aterial 6000 Block S ite P lan 6/3/2020 Backup M aterial 6000 Block S ite P lan 6/3/2020 Backup M aterial 6900 Block A erial 6/3/2020 Backup M aterial 6900 Block S ite P lan 6/3/2020 Backup M aterial Res olu+on 6/3/2020 Resolu+on Le?er 638311v1BR305-1 PRELIMINARY DEVELOPMENT AGREEMENT This PRELIMINARY DEVELOPMENT AGREEMENT dated this _____ day of _________, 2020, by and between the Economic Development Authority of Brooklyn Center, a Minnesota body corporate and politic, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 (the “Authority”) and C Alan Homes LLC, a Minnesota limited liability company, 5215 Terraceview Lane No., Plymouth, MN 55446 (the “Developer”). WHEREAS, the Authority is the fee owner of property located in the City of Brooklyn Center (the “City”) at 6045, 6037, 6031, 6025, 6939, 6933, 6927, and 6921 Brooklyn Boulevard (the “Property”) which Property the Authority is willing to consider selling for purposes of development of 13 three bedroom triplexes (the “Development”); WHEREAS, the Developer desires to explore the possibility of acquiring the 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, the Developer has requested that the Authority execute this Preliminary Development Agreement (“PDA”) agreeing to work solely with the Developer during the term hereof on negotiations for acquisition of the Development Property by the Developer to provide the 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 the Developer on negotiations for sale of the Property to the Developer for the Developer’s proposed Development until December 31, 2020 (“Term”). Further, the Authority agrees to cooperate with the Developer or a successor in evaluating any development proposal submitted by the Developer, including whether any public financial assistance is warranted in connection with that effort. 2. During the Term of this PDA, Developer agrees to use its best efforts to: 638311v1BR305-1 2 a. complete site planning and site engineering; b. complete architectural concept plans; c. submit applications, and receive all necessary City approvals related to the subdivision and development of the Development Property; d. secure construction financing necessary to construct a project consistent with the terms of this PDA; e. 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, the 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. The Developer may assign this PDA to an affiliate controlled by or under common control by the Developer or to an Authority approved successor upon written notification and approval by the Authority. 5. The Developer will provide the Authority with a written progress report on the status of the goals identified in Paragraphs 2 and 3 every 90 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 the 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, 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. 638311v1BR305-1 3 10. This PDA may be amended by mutual written agreement of the parties. 11. This Agreement may be terminated by the Developer at any time. The Authority may terminate this Agreement upon 30 days prior notice and opportunity to cure if it reasonably determines that the Developer is not using its best efforts to progress the Development and bring it to fruition. In either case, notice to terminate shall be provided in writing to the other party. 12. 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. 13. 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. 14. The Authority and the 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). 638311v1BR305-1 4 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 C ALAN HOMES LLC By__________________________________ Its _________________________________ Commissioner _________________ introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2020-____ RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT WITH C ALAN HOMES LLC WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the “Authority”) has received a proposal from C Alan Homes LLC, a Minnesota limited liability company (the “Developer”) regarding the development of land owned by the Authority for the construction of 13 three bedroom triplexes, which proposal contemplates the Authority's conveyance of the property located at 6045, 6037, 6031, 6025, 6939, 6933, 6927, and 6921 Brooklyn Boulevard (the “Authority Property”) to the Developer; and WHEREAS, the Authority’s Board of Commissioners has reviewed the Developer’s development concept and has caused to be prepared a Preliminary Development Agreement to allow the Developer to negotiate the purchase of the Authority Property, conduct due diligence, and obtain the necessary financing and commitments to construct the development; 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 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 be 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. Resolution No. 2020-________ 4. The Board hereby determines that the execution and performance of the Preliminary Development Documents will help realize the public purposes of the Economic Development Authority Act. _________________________ _________________________________ 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.