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2015.07.20 EDA Meeting Packet (Special)AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • SPECIAL MEETING • MONDAY, JULY 20, 2015 6:30 P.M. CRYSTAL CITY HALL CONFERENCE ROOM A Call to order 2_ Roll call 3. Approval of minutes from the June 16, 2015 special meeting * 4, Consider tentative acceptance of proposal from Day Construction for the lot at 4553 Yates Avenue North * 5. Other business 6 Adjournment * Materials attached Minutes of the Crystal Economic Development Authority Special Meeting June 16, 2015 Vice President Parsons called the regular meeting of the Crystal Economic Development Authority to order at 7:56 p.m. Upon call of the roll, the following members were present: Jim Adams, Elizabeth Dahl, Julie Deshler, Jeff Kolb, Laura Libby and Olga Parsons. The following staff members were present: Anne Norris, Executive Director; John Sutter, Community Development Director; Dan Olson, City Planner; and Troy Gilchrist, City Attorney. Motion by Commissioner Kolb (Adams) to approve the minutes of the May 5, 2015 regular meeting. Motion carried. The EDA considered a resolution authorizing the sale of the lot at 5255 Edgewood Avenue North to Novak -Fleck for construction of a new house. Motion by Commissioner Deshler (Kolb) to adopt the resolution. Motion carried. The EDA considered a resolution authorizing the sale of the lot at 5715 Regent Avenue North to Tollberg Homes for construction of a new house. Motion by Commissioner Deshler (Kolb) to adopt the resolution. Motion carried. The EDA considered authorizing an option agreement with Tollberg Homes for the lot at 5626 Vera Cruz Avenue North. Motion by Commissioner Dahl (Libby) to authorize the agreement. Motion carried. The EDA considered a resolution authorizing acquisition of vacant Hennepin County land at 592656 th Avenue North and 5612-5618 Adair Avenue North. Motion by Commissioner Adams (Libby) to adopt the resolution. Motion carried. The EDA received information on how the Comprehensive Plan relates to acquisitions and sales. Motion by Commissioner Libby (Dahl) to adjourn the regular meeting. Motion carried. The meeting adjourned at 8:19 p.m. Olga Parsons, Vice President ATTEST: Elizabeth Dahl, Secretary CYST EDA STAFF REPORT 4553 Yates Avenue North A«� Lot purchase proposal from Day Construction FROM: Dan Olson, City Planner DATE: July 16, 2015 TO: Anne Norris, Executive Director (for July 20 EDA meeting) SUBJECT: Consider tentative acceptance of proposal by Day Construction for the lot at 4553 Yates Avenue North Day Construction has submitted a proposal to purchase the lot at 4553 Yates Avenue North. The lot price is $45,000. Day Construction is a state -licensed residential building contractor with no enforcement actions. Attached are a 2012 aerial photo, builder's proposal form, and preliminary site and house plans for a two story home. The house would have approximately 1,659 finished square feet with an open living -dining -kitchen area, three bedrooms and three bathrooms. It would also have unfinished square footage on the lower level, with an option to have it finished with additional bedrooms, a bathroom, laundry room or family room. The builder does not yet have a buyer for the house. Day Construction has not previously submitted a purchase proposal to the EDA, and has only constructed one home (the EDA prefers builders who have constructed at least three homes). They have renovated homes in St. Paul, Minneapolis, Golden Valley, and Fridley, Staff has visited the home recently constructed by Day Construction in Minneapolis, and found it to be of good quality (photo of the home is attached). Staff has also contacted the Cities of Golden Valley and Fridley and found only one permit still outstanding. Further research is being completed on this permit, and staff will report the findings at the ECA meeting on July 20. The required public hearing would be scheduled if the EDA gives tentative acceptance of the proposal. REQUESTED EDA ACTION: EDA tentative approval of the purchase proposal with Day Construction for the EDA lot at 4553 Yates Avenue North. Page 1 of 1 { f T;,w P11 is � I =�pow , sp' lotZ IrVi ji (105)oil A, MWY xp ..h .. M i4 ra r _.il �l A '' D,�Y GOEVSTRUC710M1! July 10, 2015 Dan Olson Main: 651-565-7877 Fax: 651-565-7876 info@day-construction.com www.day-construction.com License BC641777 City of Crystal Economic Development Authority 4141 Douglas Dr N Crystal, MN 55422 Dan, Enclosed please find an RFP for the City owned lot at 4553 Yates Ave N. We are proposing to construct a two story home per the enclosed design. The home would feature a two car attached garage, three bedrooms, three bathrooms, an open living space arrangement, and will be an attractive addition to the neighborhood. We have reviewed the criteria set forth by the Crystal EDA in the Request for Proposal for the site and have determined that the proposed structure will meet the desired criteria. Day Construction has been in the residential construction business since 2011, and it's members have been involved in the residential construction industry for approximately ten years. Our past projects have included numerous kitchens, bathrooms, basements, additions, as well as rehabbing and selling multiple distressed properties. We have thus far mainly focused on projects involving existing homes, but are beginning to move into the new construction industry. We have constructed one new home, as indicated in the completed RFP, at 2501 James Ave N in Minneapolis. While our background doesn't precisely meet the requirements set forth by the City, we hope that the City can look favorably upon our experience as a residential contractor and approve our proposal to construct a home at 4553 Yates Ave N. Sincerely, Matthew Day President, Day Construction LLC PROPOSALFORM PROPOSAL TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL 4553 YATES AVENUE NORTH CHECK ONE: BUILDER OFFERS $45,000 TO PURCHASE THIS LOT BUILDER OFFERS $500 FOR A SIX-MONTH OPTION TO PURCHASE THIS LOT FOR $45,000 This proposal is not a purchase agreement or other binding contract. At this time, the Builder is submitting a proposal to purchase this lot and build a new single family house in accordance with the RFP Guidelines, or is requesting a six-month option for same. If a builder's proposal is tentatively accepted by the EDA board, then EDA staff would work with the Builder to determine the specific house plan and present it at the next EDA meeting. If the EDA board gives final approval at that time, the Builder would sign a Purchase & Redevelopment Agreement and provide $2,000 earnest money for the lot. Only after such an Agreement is signed would a binding contract exist between the EDA and the Builder. Builders may purchase a 6 -month option on a lot for $500, renewable for an additional 6 months for an additional $500. The option provides the builder with exclusive rights to purchase the lot and build a house subject to the normal EDA process, requirements and guidelines. As a condition of the option, the builder must list the lot with a to -be -built house on the MLS for the duration of the option. The number of options is limited: No builder may have options on more than 10% of the EDA's lots, and no more than 50% of the EDA's lots may be under option at any time. BUILDER: (Builder is required to be a Residential Building Contractor licensed by the State of Minnesota.) Name: Day Construction State License Number: BC641777 Tel (1): 651-565-7877_ Address: 8033 34th PI N Tel (2): Email: matthew(Pday-construction.com 612-802-4907 Fax: 1 :va: ?r; City/State/Zip. t.:r IN, r I IN I �Ilf?19, Rol 5 re Date REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION: m Attach one representative example of a house you would plan to build on this lot if your proposal is selected. It does not need to show exactly how it would be placed on the lot; it just needs to show the approximate size, quality and features you would anticipate a new house would have on this lot. A specific house plan would be determined after a proposal is tentatively accepted by the EDA. Ln The EDA will only sell lots to builders who have experience in house construction in Minnesota. Please list the addresses of three houses you have built in Minnesota within the last five years, or attach other evidence of qualification for review by the EDA: House #1: 2501 James Ave N, Minneapolis House #2: — House #3: SUBMIT PROPOSAL TO: Attn: John Sutter, Crystal EDA, 4141 Douglas Dr N, Crystal MN 55422 TEL: 763.531.1142 FAX: 763.531.1188 john sutter c stalmn.gov PROPOSALS MAYBE SUBMITTED BY HAND DELIVERY, U.S. MAIL, FAX, OR EMAIL (.pdf format). PROPOSALS MAY BE SUBMITTED AT ANY TIME AND WILL BE CONSIDERED ON A "FIRST COME, FIRST SERVED" BASIS UNLESS THE LOT HAS BEEN OPTIONED BY ANOTHER BUILDER. J N Q .. U t Power , x 876.4 ............... 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