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HomeMy WebLinkAboutEDA MIN 11-10-03ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES NOVEMBER 10, 2003 CALL TO ORDER/ROLL CALL President, Murzyn called the meeting to order at 6:31 p.m. Present: Don Murzyn Jr., Patricia Jindra, Julienne Wyckoff, Bobby Williams and Bruce Nawrocki, Tammera Ericson, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ITEMS FOR CONSIDERATION N.E.I. Streetar stated this Purchase Agreement is for the NEI property located at 825 41st Avenue. The agreement includes a building of approximately 120,000 square feet and 5.5 acres of land. NEI will be closing and vacating the building on December 31, 2003. The general terms of the agreement are a purchase price of $600, 000 cash due at closing, earnest money of $20, 000, with the closing to occur in 60 days. The contingencies are: 0 complete a phase 1 environmental review; 2) demolition quotes; 3) Asbestos quotes; and 4) tax increment qualification inspection. Williams asked is there an exit in the agreement. Steetar stated it is listed under number 7, Buyer's Conditions Precedent to Closing, a, b, c and d. Wyckoff asked if anyone else is interested in the property. Streetar stated Real Estate Masters wants to bring the Islamic school from Fridley and the Muslim House of Prayer from Central into the building. Once NEI signs the agreement it automatically takes the property off the market for 60 days. Originally the earnest money amount was $5,000, which would have been appropriate, but after talking to NEI, they indicated they wanted more of a commitment, as they wouM be taking the property off the market and want to be out of the building by December 31st. Wyckoff asked where the $600,000 would come from. Fehst stated the City has $678,000 in the Four Cities First Time Homebuyers association Bond that Columbia Heights, Brooklyn Center, Moorhead, and Robbinsdale went together on. The cities borrowed money for the First Time Homebuyer Program and as the money was paid back there was an overabundance of money, plus interest the City received a total of $678, 000. These funds can be used for general purposes. Nawrocki asked if the Bond was paid off. Fehst stated it was. Nawrocki asked what the Charter states about the City purchasing property and felt the City should be buying the property not the EDA. Schumacher stated, the City can acquire property with just a purchase agreement, but when you sell the property it must be sold by ordinance. Ericson stated the EDA can obtain the financing with an exit clause, whereas, if the City purchased the property there would be no exit to the agreement. Fehst stated Anoka County and Frank Dunbar approached the City to propose 50 units of senior Economic Development Authority Meeting Minutes November 10, 2003 Page 2 of 2 housing, a Library and City Hall, with 20 carriage homes all on one level for the site. Then after discussing the project with the County, they stated they would tax the city. Staff then looked into options of purchasing the property. Fehst contacted Al Hoefstedt in Minneapolis, who originally sent Dunbar to the City. They discussed the issues of the City purchasing the property to develop a tax base, which he was in agreement that NE! would consider. Fehst stated a Public Hearing could be held at the next City Council meeting on November 24th. Nawrocki stated the City should be buying the property as that is where the money is going to come from and that a public hearing should have been held. He also stated he would support the motion on the basis that there will be the opportunity for the City Council to hold a public hearing before the City loans the money to the EDA. Wyckoff stated the ESL School is currently renting space from NEI and has asked for a 60 to 90 day extension of their lease. If they stay in the building we would have to block off that section of the building and heat it. She also would like to have a community sale to salvage any of the items in the building. Many residents have sentimental attachment as they went to school there. Fehst stated when he was in Robbinsdale they did the same kind of thing when the school district sold property for senior housing, which provided some good will by residents. Motion by Ericson, second by Wyckoff, to Authorize the President and Executive Director to execute a purchase agreement with NEI for the NEI Site pursuant to terms and conditions which are substantially similar to those contained in the draft purchase agreement reviewed by the EDA on November 10, 2003, with final language to be approved by staff and our attorneys at Kennedy and Graven. All Ayes. Motion Carried. ADJOURNMENT Motion by Wyckoff, second by Kclzcnbcrg to adjourned thc meeting at 6:58 p.m. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H:kEDAminutes2003\l 1-10-2003 Spec.