2013.04.03 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
WEDNESDAY, APRIL 3, 2013
6:30 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order
2. Roll call
3. Consider approval of minutes from the March 19, 2013 special meeting and work
session *
4. PUBLIC HEARING: Consider a resolution authorizing the sale of a lot at 4633 Douglas
Drive North to Novak -Fleck for construction of a new house *
5. PUBLIC HEARING: Consider a resolution authorizing the sale of a lot at 5417 35th
Avenue North to Novak -Fleck for construction of a new house *
6. Other business
7. Adjournment
* Materials attached
03/25/13 GAEDAWgendas\2013\04.03 (Wed).docx
.........................
EDA STAFF REPORT
:CITY5o'� th
YSTAL
541735 — Supplemental/Update
Public Hearing -Sale of Lot to Novak -Fleck
FROM: John Sutter, City Planner/Assistant Community Development Director
DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director 6
DATE: April 3, 2013
TO: Anne Norris, Executive Director (for April 3, 2013 EDA meeting)
SUBJECT: Public Hearing: Consider a resolution authorizing the sale of the lot at 5417
35th Avenue North to Novak -Fleck for construction of a new house
The $40,000 lot price was based on a 2003 study that estimated the depth of bad soils on this
lot to be approximately 4 feet. Exploratory digging conducted on March 22 and 25 revealed the
actual depth of bad soils to be in the range of 9-12 feet. Subsequent testing determined the
depth to material suitable for foundation support to be 12-13 feet in the vicinity of the proposed
house and 17-20 feet in the vicinity of the proposed garage. Further complicating matters is
the fact that, in 2000 when MnDOT relocated an 8 inch water main along the frontage road,
their subcontractor installed it 15-20 feet east of where it was supposed to go, putting it less
than 5 feet from the proposed house. This is something that was unknown to city staff (both
EDA and Public Works/Utilities) until now. We are currently exploring options for addressing
both issues and will remove the property from the lot list in the meantime.
Regarding this specific new home proposal, Novak -Fleck has determined that they cannot
proceed with the lot sale. The proposed house's footprint is too large for it to be repositioned
on the lot in a way that addresses both the need for soil correction and the presence of the
water main. Their earnest money will be refunded in accordance with the lot sale guidelines.
Minutes of the
Crystal Economic Development Authority
Special Meeting
March 19, 2013
President Hoffmann called the special meeting of the Crystal Economic Development Authority
to order at 8:05 p.m.
Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Julie
Deshler, Mark Hoffmann, Laura Libby, Casey Peak and Joe Selton.
The following staff members were present: Anne Norris, Executive Director; Patrick Peters,
Deputy Executive Director; John Sutter, City Planner/Assistant Community Development
Director; and Mary Tietjen, City Attorney.
Motion by Commissioner Peak (Selton) to approve the minutes from the March 5, 2013, regular
meeting and work session.
Motion carried.
The EDA considered tentative acceptance of a proposal from Novak -Fleck to purchase a lot at
4633 Douglas Drive North for construction of a new house.
Motion by Commissioner Selton (Libby) to tentatively accept a proposal from Novak -Fleck to
purchase a lot at 4633 Douglas Drive North for construction of a new house.
Motion carried.
The EDA considered tentative acceptance of a proposal from Novak -Fleck to purchase a lot at
5417 35t" Avenue North for construction of a new house.
Motion by Commissioner Peak (Selton) to tentatively accept a proposal from Novak -Fleck to
purchase a lot at 5417 35t" Avenue North for construction of a new house.
Motion carried.
The EDA considered a resolution amending the 2012 EDA and TIF District budgets.
Motion by Commissioner Selton (Budziszewski) to adopt Resolution #2013-03 amending the
2012 EDA and TIF District budgets.
Motion carried.
Motion by Commissioner Budziszewski (Deshler) to adjourn the special meeting.
Motion carried.
The meeting adjourned at 8:18 p.m.
Mark Hoffmann, President
ATTEST:
Julie Deshler, Vice President
Minutes of the
Crystal Economic Development Authority
Work Session
March 19, 2013
President Hoffmann called the work session of the Crystal Economic Development Authority to
order at 8:23 p.m.
Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Julie
Deshler, Mark Hoffmann, Laura Libby, Casey Peak and Joe Selton.
The following staff members were present: Am1e Norris, Executive Director; Patrick Peters,
Deputy Executive Director; John Sutter, Assistant Community Development Director/City
Planner; Tom Mathisen, City Engineer/Public Works Director; and Gene Hackett, Recreation
Director.
The EDA discussed alternatives for the EDA -owned lot at 4720 Douglas Drive North.
It was the consensus of the EDA that the lot at 4720 Douglas Drive North would not be added to
the list of lots for sale for a period of six months to allow for an evaluation of summer parking
demands at the Crystal Community Center.
The work session adjourned at 8:40 p.m.
Mark Hoffmann, President
ATTEST:
Julie Deshler, Vice President
EDA STAFF REPORT
cffra 4633 Douglas Dr
CRYSTAL
Public Hearing - Sale of Lot to Novak -Fleck
FROM: John Sutter, City Planner/Assistant Community Development Director
DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director
DATE: March 28, 2013
TO: Anne Norris, Executive Director (for April 3, 2013 EDA meeting)
SUBJECT: Public Hearing: Consider a resolution authorizing the sale of the lot at 4633
Douglas Drive North to Novak -Fleck for construction of a new house
On March 19, 2013 the EDA tentatively accepted a proposal from Novak -Fleck to purchase
the lot at 4633 Douglas Drive North for $50,000. Novak -Fleck has a Minnesota Residential
Building Contractor license with no enforcement actions.
This would be custom-built for a specific homebuyer. The house would be a split entry with an
attached three car garage. The upper level would have 972 sq. ft. with an open living -dining -
kitchen area, two bedrooms and one bathroom. The lower level would have 800 finished sq.
ft. with a family room, two bedrooms, one bathroom and a laundry/mechanical room.
The proposal meets city code including zoning, and also is in conformance with the EDA's lot
sale guidelines. Lot sale closing and construction start are anticipated for mid-April, with house
completion in summer 2013.
The proposed resolution, 2012 aerial photo, site sketch and house plan are attached.
REQUESTED EDA ACTION: After holding the public hearing and receiving any testimony,
consider adopting the attached resolution authorizing the property sale.
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE SALE OF
4633 DOUGLAS DRIVE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal ("the EDA") is the
owner of 4633 Douglas Drive North, legally described as Lot 4, Klatke's Second Addition,
Hennepin County, Minnesota ("the Property"); and
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new single family house; and
WHEREAS, the EDA has reviewed and accepted the proposal from Novak -Fleck.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Property to
Novak -Fleck.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Redevelopment Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Novak -Fleck.
Adopted this day of
Mark G. Hoffmann, President
Anne L. Norris, Executive Director
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EDA STAFF REPORT
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5417 35th
SAL
Pu
blic Hearing -Sale of Lot to Novak -Fleck
FROM: John Sutter, City Planner/Assistant Community Development Director
DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director
DATE: March 28, 2013
TO: Anne Norris, Executive Director (for April 3, 2013 EDA meeting)
SUBJECT: Public Hearing: Consider a resolution authorizing the sale of the lot at 5417
35th Avenue North to Novak -Fleck for construction of a new house
On March 19, 2013 the EDA tentatively accepted a proposal from Novak -Fleck to purchase
the lot at 5417 35th Avenue North for $40,000*. Novak -Fleck has a Minnesota Residential
Building Contractor license with no enforcement actions.
This would be custom-built for a specific homebuyer. The house would be a modified two story
with a two car attached garage. The second floor would have 652 sq. ft. with two bedrooms
and two bathrooms. The main floor would have 1,062 sq. ft. with a living room, open great
room -dining -kitchen area, office/bedroom, bathroom and laundry. The basement would have
843 finished sq. ft. with a family room, bedroom, bathroom, music/storage room and
laundry/mechanical room.
The proposal meets city code including zoning, and also is in conformance with the EDA's lot
sale guidelines. Lot sale closing and construction start are anticipated for mid-April, with house
completion in summer 2013.
The proposed resolution, 2012 aerial photo, site sketch and house plan are attached.
*The $40,000 lot price was based on a 2003 study that estimated the depth of bad soils
on this lot to be approximately 4 feet. Exploratory digging conducted on March 22 and
25 revealed the actual depth of bad soils to be in the range of 9-12 feet. The builder is
in the process of determining the additional costs due to soil conditions and will be
requesting a corresponding lot price reduction. If this is completed in time for the April 3
public hearing, then staff will present a supplemental report to the EDA seeking
approval of the lot sale at a reduced price. If the supplemental report is not completed
in time for the April 3 meeting, then staff will seek EDA continuance of the public
hearing to the April 16 meeting.
REQUESTED EDA ACTION: Upon receipt of the supplemental staff report regarding the bad
soils and lot price reduction (see above), and after holding the public hearing and receiving
any testimony, consider adopting the attached resolution authorizing the property sale.
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE SALE OF
541735 TH AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal ("the EDA") is the
owner of 5417 35th Avenue North, legally described on the attached Exhibit A ("the Property");
and
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new single family house; and
WHEREAS, the EDA has reviewed and accepted the proposal from Novak -Fleck.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Property to
Novak -Fleck.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Redevelopment Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Novak -Fleck.
Adopted this day of
Mark G. Hoffmann, President
Anne L. Norris, Executive Director
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
LOCATED AT 5417 35TH AVENUE NORTH
Lot 1, Block 2, Crystal Heights View 2nd Addition which lies easterly of Line 1.
Line 1: Commencing at the southwest corner of said Lot 1 ; thence easterly on an
azimuth of 90 degrees 06 minutes 15 seconds along the south line thereof for
6.04 feet to the point of beginning of Line 1 to be described; thence on an
azimuth of 03 degrees 53 minutes 13 seconds for 97.44 feet; thence deflect to
the right on a tangential curve, having a radius of 39.21 feet and a delta angle of
80 degrees 51 minutes 35 seconds for 55.34 feet to the north line of said Line 1
and there terminating.
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Benchmark: Top nut of hydrant lo(
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east of subject property.
Elevation = 866.08 feet NGVD
Property Address: 5417 3E
Crystal,
Area of parcel is 8348 sq.ft
Property zoned R-1, Low Dern
Setback requirements per z,
City of Crystal:
Front — 30 feet min., 4C
Side . — 5 feet . interior I&
10 feet side str,
Rear — 30 feet
Property is in flood zone "X'
map number 27053CO213E, d
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