2017.03.07 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, MARCH 7, 2017
6:30 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order
2. Roll call
3. Approval of minutes from the January 3, 2017 regular meeting
4. Consider a resolution authorizing acquisition of surplus Hennepin County property
adjacent to Bottineau Blvd and 49th Avenue North
5. Consider a resolution authorizing acquisition of 5924 Elmhurst Avenue North (6:45 PM)
6. Other business
7. Adjournment
Minutes of the
Crystal Economic Development Authority
Annual Meeting
January 3, 2017
Vice President Parsons called the annual organizational meeting of the Crystal Economic
Development Authority to order at 8:15 p.m.
Upon call of the roll, the following members were present: Jim Adams, John Budziszewski,
Elizabeth Dahl, Julie Deshler, Jeff Kolb, Nancy LaRoche and Olga Parsons.
The following staff members were present: Anne Norris, Executive Director; John Sutter,
Deputy Executive Director; and Troy Gilchrist, city Attorney.
City Clerk Chrissy Serres administered the oath of office to four newly elected or re-elected
commissioners: Julie Deshler, Nancy LaRoche, John Budziszewski and Jim Adams.
The EDA considered officers for 2017.
Motion by Commissioner Deshler (Budziszewski) to approve the Mayor’s recommended slate of
officers for 2017: President Jeff Kolb, Vice President Elizabeth Dahl, Secretary Olga Parsons
and Treasurer Nancy LaRoche.
Motion carried.
The EDA consideration the meeting calendar for 2017. There was discussion about regular
meetings versus special meetings. Staff and the City Attorney will prepare amended bylaws
including changes pertaining to this matter for EDA consideration in 2017.
Motion by Commissioner Budziszewski (LaRoche) to approve the 2017 meeting calendar as
presented.
Motion carried.
Motion by Commissioner Adams (Dahl) to approve the minutes of the December 20, 2016,
Special Meeting.
Motion carried.
The EDA discussed a working group for opportunity areas as described in the meeting packet.
President Kolb asked Commissioners Deshler and LaRoche to join him on the working group
which will meet with staff and present the results of their discussion at a subsequent work
session.
Motion by Commissioner Budziszewski (Deshler) to adjourn the annual meeting.
Motion carried.
The meeting adjourned at 8:29 p.m.
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_______________________________
Jeff Kolb, President
ATTEST:
______________________________
Elizabeth Dahl, Vice President
PAGE 1 OF 3
_____________________________________________________________________
FROM: Dan Olson, City Planner
DATE: March 2, 2017
TO: Anne Norris, Executive Director (for March 7 EDA meeting)
SUBJECT: Consider a resolution authorizing acquisition of surplus Hennepin County
property adjacent to Bottineau Blvd and 49th Ave North
_____________________________________________________________________
A. BACKGROUND
Hennepin County owns four vacant residential properties in Crystal that they have
offered to sell to the EDA for the development of new single-family homes.
The following are attached:
A. Property locations
B. Estimated budget
C. Proposed resolution
B. STAFF COMMENTS
The homes previously located on these lots were moved in the 1970s for the
construction of a State Highway 52 (now County Road 81) interchange that was never
built. If the EDA chooses not to purchase these lots the County will sell them at a
public auction. The following is information about each parcel:
4837 Lakeland Avenue North
o Parcel size: Currently 21,141 SF in size, but the County will retain
approximately 7,600 SF for a street easement (see attachment A). The
parcel size sold to the EDA will be approximately 13,756 SF.
o Parcel purchase price: $29,700
o Utilities: There are water and sewer connections in 49th Avenue North.
The condition of the sewer connection is unknown so the budget includes
installation of a new service connection.
o Site preparation: The property will need to be surveyed and have some of
the vegetation removed to show where a home could be built. The home
that was located here was moved from the property in 1974.
EDA STAFF REPORT
Acquisition of Four Hennepin County Properties
PAGE 2 OF 3
o Proposed sale price: $60,000
o Interested buyer: No
5209 - 49th Avenue North
o Parcel size: 11,676 SF
o Parcel purchase price: $38,700
o Utilities: There is a water connection in Lakeland Avenue North and water
and sewer connections in 49th Avenue North
o Site preparation: Site preparation is not needed. The foundation of the
previous home was removed in 2015 and the property surveyed and
platted in 2016.
o Proposed sale price: $55,000
o Interested buyer: Yes
5201 – 49th Avenue North
o Parcel size: 8,400 SF
o Parcel purchase: $38,700
o Utilities: There are water and sewer connections in 49th Avenue North
o Site preparation: Site preparation is not needed. The foundation of the
previous home was removed in 2015 and the property surveyed and
platted in 2016.
o Proposed sale price: $55,000
o Interested buyer: No
5140 Lakeside Avenue North
o Parcel size: 11,056 SF
o Parcel purchase price: $38,700
o Utilities: There are water and sewer connections in Lakeside Avenue
North
o Site preparation: Some of the vegetation should be removed to show
where a home could be built. The foundation of the previous home was
removed in 2015 and the property surveyed and platted in 2016.
o Proposed sale price: $55,000
o Interested buyer: No
The County’s asking price for the four lots is $145,800. The attached estimated budget
includes these parcel prices, other expenses of $17,930 and proceeds of $225,000,
resulting in an estimated net revenue of $61,270. Given the current strength of the
housing market staff anticipates two of the properties being sold or optioned by the end
of 2017. Therefore the EDA would have enough revenue from these lot sales to fund
this acquisition:
2017 Budget Actual @ 3/7 Est. YE 2017
Property Sales $100,000 $50,000* $105,000**
Property Acquisitions $110,000 $0 $145,800***
PAGE 3 OF 3
* Includes the sale of 5924 Elmhurst Avenue North on March 7, 2017
** Includes the sale of 4724 Lakeland Avenue North on April 4, 2017
*** Includes possible acquisition of four Hennepin County properties
The following are reasons for the EDA to purchase the four Hennepin County
properties:
1. The County will auction the lots to the highest bidder, but the motivations of the
bidders are unknown and there is no guarantee that a new home would be built. By
contrast the EDA sells properties to builders with definitive house plans and requires
the builder to construct the home within one year.
2. Since the EDA has development standards (for example, the home must have a
two-car garage, three bedrooms and two bathrooms), the EDA has the ability to
ensure that the homes will be compatible with community expectations.
3. The EDA has experience with purchasing remaining parcels from road projects and
getting the lots sold for new home construction . For example in 2012 the EDA
purchased land from Hennepin County after the reconstruction of Bottineau
Boulevard and sold two lots. In 2013 the EDA purchased land from the Minnesota
Department of Transportation (MnDOT) left over from the reconstruction of Highway
100 and sold three lots.
4. Based on the estimated budget (attachment B) for this property purchase, EDA
revenues will exceed expenditures with these lots. Surplus funds will be available
for other EDA activities.
C. REQUESTED ACTION
If the EDA desires to acquire the properties, then it should adopt the attached resolution
approving the purchase of the subject properties and authorizing the execution of
documents necessary to complete the purchase.
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ESTIMATED EXPENDITURES
$145,800 acquisition
$10,000 Site prep, including new sanitary sewer connection at 4837 Lakeland.
$1,000 survey for 4837 Lakeland
$2,500 legal, title & closing costs to acquire property.
$2,800 legal, title & closing costs to sell lots for new homes.
$1,630 contingency for unforeseen (10% of the above items except acquisition)
-------------------
$163,730 TOTAL ESTIMATED EXPENDITURES
ESTIMATED REVENUE
$225,000 proceeds from sale of lots for new homes 44,888 sq. ft.$5.01 p.s.f.
-------------------
$225,000 TOTAL ESTIMATED REVENUE
$61,270 ESTIMATED NET REVENUE (EXPENDITURE)
REDEVELOPMENT OF
FOUR HENNEPIN COUNTY PROPERTIES
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2017-02
A RESOLUTION AUTHORIZING THE ACQUISITION OF
FOUR PROPERTIES FROM HENNEPIN COUNTY
WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) desires to
acquire real property located at 4837 Lakeland Avenue North, 5201 and 5209 – 49th Avenues
North, and 5140 Lakeside Avenue North (the “Properties”); and
WHEREAS, the EDA finds that the proposed acquisition has no relationship to the
Comprehensive Plan.
NOW, THEREFORE, BE IT RESOLVED that EDA staff and consultants are authorized and
directed to negotiate the terms of purchase of the Properties with the seller of such Properties,
subject to final approval by the EDA of a purchase agreement memorializing such terms of
conveyance.
Adopted this 7th day of March, 2017.
____________________________________
Jeff Kolb, President
____________________________________
John Sutter, Deputy Executive Director
Page 1 of 1
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
DATE: March 2, 2017
TO: Anne Norris, Executive Director (for March 7 EDA meeting)
SUBJECT: PUBLIC HEARING: Consider a resolution authorizing the sale of lot at 5924
Elmhurst Avenue North to Tollberg Homes for construction of a new house
Tollberg Homes, a Minnesota Residential Building Contractor with no enforcement a ctions,
has submitted a proposal to purchase the lot at 5924 Elmhurst Avenue North for $50,000.
The EDA tentatively accepted the builder’s proposal on December 6, 2016, and authorized an
Option Agreement with Tollberg. On January 30, 2017, Tollberg notified staff that they would
like to exercise their option to purchase the property. The site plan and house plans have not
changed since the December 6th meeting.
Attached are an aerial photo, builder’s proposal form, and preliminary site and house plan f or
a split entry home with an attached three car garage. The house would have approximately
1,200 finished square feet on the main level with an open living -dining-kitchen area, three
bedrooms and two bathrooms. It would also have unfinished square footage on the lower
level, with an option to have it finished with additional bedrooms, a bathroom, and family room.
Similar homes have been built by Tollberg on four EDA lots, including most recently at 3 122
Douglas Drive North, which has a pending sale.
For 5924 Elmhurst, if on March 7 the EDA adopts the attached resolution, then the lot sale
would close in March. Construction would begin after closing with completion anticipated by
late 2017. The house is listed for sale at $254,900.
REQUESTED EDA ACTION: After holding the public hearing and receiving any testimony,
consider adopting the attached resolution authorizing the property sale of 5924 Elmhurst
Avenue North to Tollberg Homes.
EDA STAFF REPORT
PUBLIC HEARING
5924 Elmhurst Avenue North – Sale of Lot to Tollberg Homes
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2017-01
A RESOLUTION AUTHORIZING THE SALE OF
5924 ELMHURST AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 5924 Elmhurst Avenue North, legally described as follows:
Lot 4, Block 1, Kensey Manor 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 Tollberg Homes.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Prop erty to
Tollberg Homes.
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 Tollberg Homes.
Adopted this 7th day of March, 2017.
____________________________________
Jeff Kolb, President
____________________________________
John Sutter, Deputy Executive Director