Loading...
2017.04.26 EDA Meeting Packet (Special)AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL •• •• SPECIAL MEETING •• •• WEDNESDAY, APRIL 26, 2017 6:30 P.M. CRYSTAL CITY HALL CONFERENCE ROOM A 1. Call to order * 2. Roll call * 3. Approval of minutes from the April 10, 2017 special meeting 4. Consider next steps for 5900 56 th Avenue North 5. Adjournment * *Items for which no materials are included in the packet Page 1 of 1 Minutes of the Crystal Economic Development Authority Special Meeting April 10, 2017 President Kolb called the special meeting of the Crystal Economic Development Authority to order at 6:40 p.m. Upon call of the roll, the following members were present: John Budziszewski, Julie Deshler, Jeff Kolb and Nancy LaRoche. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, and Stephanie Revering, Police Chief. Motion by Commissioner Deshler (LaRoche) to approve the minutes of the April 4, 2017 regular meeting. Motion carried. The EDA considered whether to close the meeting to discuss terms for the EDA’s potential purchase of 5900 56 th Avenue North. No motion was made to close the meeting. The EDA considered a resolution authorizing the purchase of 5900 56 th Avenue North. Mr. Sutter made a presentation and answered questions from the board. Motion by Commissioner Budziszewski (Deshler) to adopt a resolution authorizing the purchase of 5900 56 th Avenue North. Motion carried with Commissioners Budziszewski, Deshler and LaRoche voting aye and President Kolb abstaining. Motion by Commissioner Budziszewski (LaRoche) to adjourn the meeting. Motion carried. The meeting adjourned at 7:42 p.m. _______________________________ Jeff Kolb, President ATTEST: ______________________________ Nancy LaRoche, Treasurer _____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: April 20, 2017 TO: Anne Norris, City Manager (for April 26 EDA special meeting) SUBJECT: Consider next steps for the 4-plex at 5900 56 th At a special meeting on April 10 the EDA authorized acquisition of the 4-plex at 5900 56 th Avenue North (Bass Lake Road). The purchase price is $295,000 and the closing is scheduled for May 9. For background, please see the following attachments (previously provided): • 2015 aerial photo • 2016 rental inspection report • Staff presentation from April 10 special meeting A special EDA meeting has been called for April 26 to discuss potential next steps for the property. Based on the April 10 discussion, demolition of the building seems to be the most likely path forward. However, the EDA could consider alternatives such as: − Re-selling as-is to another entity − Rehabbing then re-selling to another entity − Rehabbing and holding for medium-long term Staff will have additional information to present at the April 26 special meeting. EDA STAFF REPORT 5900 56 th Avenue North (Bass Lake Road) Next Steps for 4-Plex Ap r i l 1 0 , 2 0 1 7 Ac t i o n s t o D a t e We d 4 / 5 • St a f f e m a i l e d i n f o t o E D A • ED A s p e c i a l m e e t i n g c a l l e d t o c o n s i d e r a c q u i s i t i o n • Se l l e r ’ s r e a l t o r i n d i c a t e d f o u r o f f e r s h a d b e e n r e c eived and no o f f e r s w i l l b e a c c e p t e d a f t e r T h u r s d a y Th u 4 / 6 • Sp e c i a l m e e t i n g s e t f o r M o n d a y 4 / 1 0 • St a f f m a k e s c o n t i n g e n t o f f e r f o r $ 2 9 5 , 0 0 0 l i s t p r i c e − C o n t i n g e n t o n E D A a p p r o v a l o n 4 / 1 0 Fr i 4 / 7 • Se l l e r ’ s r e a l t o r s a y s s e l l e r r e c e i v e d s e v e n o f f e r s , has ac c e p t e d o u r c o n t i n g e n t o f f e r a n d i s a w a r e t h a t E D A board ma y d e c l i n e t o p u r c h a s e 20 1 5 A e r i a l P h o t o – W i d e V i e w 20 1 5 A e r i a l P h o t o – C l o s e - U p 59 0 0 5 6 th – S u b j e c t P r o p e r t y I n f o r m a t i o n • 8, 8 7 1 s q . f t . ( 0 . 2 a c r e ) p a r c e l • 4- p l e x b u i l t i n 1 9 5 8 • 3, 4 8 8 s q . f t . g r o s s f l o o r a r e a ( a p p r o x . 7 6 0 s q . f t . n e t p e r u n i t ) • Al l f o u r u n i t s o c c u p i e d ( m o n t h - t o - m o n t h l e a s e s @ $ 7 20/mo.) • He a d - i n p a r k i n g f r o m Z a n e A v e n u e • No g a r a g e s ; t h e r e i s a t r a s h e n c l o s u r e a n d s m a l l s h ed • Cu r r e n t o w n e r p u r c h a s e d i n M a y 2 0 1 4 f o r $ 2 6 8 , 0 0 0 • He n n e p i n C o u n t y ’ s e s t i m a t e d 2 0 1 7 m a r k e t v a l u e i s $ 3 10,000 • 20 1 7 p r o p e r t y t a x e s a r e $ 5 , 2 4 8 , o f w h i c h $ 1 , 6 4 0 g o e s t o c i t y • Re n t a l i n s p e c t i o n s s h o w s l i g h t i m p r o v e m e n t o v e r p a s t few years • Po l i c e c a l l s a b i t l o w e r i n r e c e n t y e a r s ( 1 7 i n 2 0 1 4 v s 1 3 i n 2 0 1 6 ) Su b j e c t P r o p e r t y v s . R e c e n t S a l e s Ot h e r 4 - P l e x e s P u r c h a s e d b y E D A • 51 1 1 - 5 1 2 1 - 5 2 0 1 - 5 2 1 1 5 6 th (f o u r c o n t i g u o u s 4 - p l e x e s ) − Ac q u i r e d 2 0 0 6 - 2 0 0 7 − $3 6 0 , 0 0 0 a v e r a g e p r i c e − De m o l i s h e d ; 5 5 , 3 8 9 s q . f t . s i t e u s e d f o r s t o r m w a t e r pond • 59 0 1 5 6 th − Ac q u i r e d 2 0 0 8 − $2 3 8 , 0 0 0 p r i c e − De m o l i s h e d ; h o l d i n g 1 0 , 8 5 3 s q . f t . s i t e • 47 4 1 W e l c o m e − Ac q u i r e d 2 0 0 9 − $1 9 9 , 0 0 0 p r i c e − De m o l i s h e d ; h o l d i n g 1 4 , 1 1 9 s q . f t . s i t e Es t i m a t e d E x p e n d i t u r e s 59 0 0 5 6 th RE A S O N S T O A C Q U I R E : • Li s t p r i c e i s f a i r m a r k e t p r i c e • Th i s i s t h e w o r s t r e m a i n i n g 4- p l e x i n t e r m s o f : − S m a l l p a r c e l s i z e − P o o r s i t e c o n f i g u r a t i o n − H i g h v i s i b i l i t y • Th i s t y p e o f b u i l d i n g i s fu n c t i o n a l l y o b s o l e t e • Be n e f i t s t o p u b l i c s a f e t y • Co u l d b e p a r t o f l a r g e r re d e v e l o p m e n t s i t e • Co u l d b e s o l d a s S F h o m e l o t i f la r g e r r e d e v e l o p m e n t d o e s n ’ t co m e t o g e t h e r RE A S O N S N O T T O A C Q U I R E : • $4 2 7 , 0 0 0 e s t i m a t e d t o t a l c o s t ($ 4 8 p . s . f . i s ~ 8 x v a l u e a s S F l o t ) • Re m o v e s f o u r u n i t s o f n a t u r a l l y - oc c u r r i n g a f f o r d a b l e h o u s i n g • Un c e r t a i n t i e s a b o u t r e l o c a t i o n of e x i s t i n g t e n a n t s − R e n t d i f f e r e n t i a l p a y m e n t s ar e i n c o m e - b a s e d − C h a l l e n g e s i n f i n d i n g re p l a c e m e n t h o u s i n g − M i n . 9 0 d a y s f o r t e n a n t s t o va c a t e , s o E D A h a s t o b e a la n d l o r d f o r s e v e r a l m o n t h s (d e m o l i t i o n i n f a l l 2 0 1 7 ? ) OP T I O N S : 1. D e c l i n e a c q u i s i t i o n : N o a c t i o n n e c e s s a r y 2. P r o c e e d w i t h a c q u i s i t i o n : − A d o p t t h e r e s o l u t i o n a u t h o r i z i n g a c q u i s i t i o n − R e q u i r e s e s t . e x p e n d i t u r e o f $ 4 2 7 , 0 0 0 o f E D A c a s h balance Wo u l d s t i l l h a v e a p p r o x . $ 3 m i l l i o n a t y e a r e n d 3. S e e k d e l a y s o t h a t m o r e E D A m e m b e r s c a n b e p r e s e n t: − A d o p t a m o t i o n c o n t i n u i n g t h i s i t e m t o s u b s e q u e n t special me e t i n g ( r e c o m m e n d T h u r s d a y 4 / 1 3 ) − S t a f f w o u l d a s k t h e s e l l e r t o e x t e n d t h e c o n t i n g e n cy If s e l l e r a g r e e s , E D A r e s u m e s c o n s i d e r a t i o n a t s p e c . mtg. If s e l l e r d e c l i n e s , p u r c h a s e w o u l d n o t p r o c e e d 59 0 0 5 6 th