2017.06.06 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, JUNE 6, 2017
6:30 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from the May 16, 2017 special meeting
4. Consider tentative acceptance of proposals to purchase EDA properties located at
4837 Lakeland Avenue North, 5201 and 5209 – 49th Avenues North, and 5140
Lakeside Avenue North.
5. Consider a resolution amending the Purchase and Redevelopment Agreement for
4724 Lakeland Avenue North to extend the closing deadline by 30 days.
6. Other business *
7. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 1
Minutes of the
Crystal Economic Development Authority
Special Meeting
May 16, 2017
President Kolb called the special meeting of the Crystal Economic Development Authority to
order at 8:22 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, Stephanie Revering, Police Chief, and Andrew Biggerstaff, City
Attorney.
Motion by Commissioner Budziszewski (LaRoche) to approve the minutes of the April 26, 2017
special meeting.
Motion carried.
The EDA discussed options for the 4-plex at 5900 56th Avenue North. Mr. Sutter made a
presentation and answered questions from the board.
Motion by Commissioner Adams to pursue Option 3 (make minimal tweaks and sell the
property). Motion died for lack of a second.
Motion by Commissioner Deshler (LaRoche) to pursue Option 1 (demolition of the building).
Motion failed.
Commissioners Adams, Dahl, Kolb and Parsons voting no.
Motion by Commissioner Adams (Parsons) to pursue Option 2 (relocate tenants and pursue
partner for rehabilitation of building).
Motion carried.
Commissioners Budziszewski, Deshler and LaRoche voting no.
Motion by Commissioner Adams (Dahl) to adjourn the special EDA meeting.
Motion carried.
The meeting adjourned at 9:50 p.m.
_______________________________
Jeff Kolb, President
ATTEST:
______________________________
Olga Parsons, Secretary
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_____________________________________________________________________
FROM: Dan Olson, City Planner
DATE: June 1, 2017
TO: Anne Norris, Executive Director (for June 6 EDA meeting)
SUBJECT: Consider tentative acceptance of proposals for the lots at 5201 and 5209 –
49th Avenues North and for 5140 Lakeside Avenue North
_____________________________________________________________________
BACKGROUND
The EDA recently purchased four vacant lots from Hennepin County for the development of
new single-family homes:
Staff has been marketing these lots for the past several weeks, including direct mailings to the
EDA and BATC mailing lists and postings on the city website and social media.
EDA STAFF REPORT
Tentative Acceptance of Lot Purchase Proposals
PAGE 2 OF 4
The proposal deadline was May 30 and proposals were received from two builders, Novak-
Fleck and Tollberg Homes, for three of the four lots, all located on the east side of Bottineau
Boulevard (County Road 81):
5209 49th Ave N
5201 49th Ave N
5140 Lakeside Ave N
No proposals were received for the f ourth lot (4837 Lakeland Ave N) so staff will now proceed
with marketing it on a first-come, first-served basis.
At this time, the EDA is being asked to tentatively select one proposal for each of the three lots
for a public hearing and final lot sale decision at a special EDA meeting on June 20.
Attachments:
A 1): Novak-Fleck for 5209 49th Avenue North (staff recommendation)
A 2): Tollberg Homes for 5209 49th Avenue North
B 1): Novak-Fleck for 5201 49th Avenue North
B 1): Tollberg Homes for 5201 49th Avenue North (staff recommendation)
C 1): Novak-Fleck for 5140 Lakeside Avenue North
C 2): Tollberg Homes for 5140 Lakeside Avenue North (staff recommendation)
SUMMARY OF PROPOSALS RECEIVED
A. 5209 49th Avenue North
1) Novak- Fleck (staff recommendation)
$55,000 lot price
Custom build
Proposed home: Two story with 1,934 SF on the main and second levels
consisting of a kitchen, dining, great room, four bedrooms and three
bathrooms. The 880 SF lower level could be finished later. There would also
be a three-car attached garage.
2) Tollberg Homes
$55,000 lot price
Speculative build
Proposed home: Split entry with 1,246 SF on the main level consisting of a
kitchen, dining/living room, three bedrooms and two bathrooms. The lower
level could be finished in the future with an amusement room, two bedrooms
and one bathroom. There would also be a three -car attached garage.
Examples: 5924 Elmhurst, 3122 Douglas Dr, 5626 Vera Cruz
B. 5201 49th Avenue North
1) Novak- Fleck
PAGE 3 OF 4
$55,000 lot price
Speculative build
Proposed home: Split entry with 1,280 SF on the main level consisting of a
kitchen, dining/living room, three bedrooms and two bathrooms. The lower
level could be finished in the future with a large family room, one bedroom
and one bathroom. There would also be a three -car attached garage.
Examples: 4720 Douglas Dr, 5332 50th, 5824 Regent, 5700 Regent
2) Tollberg Homes (staff recommendation)
$55,000 lot price
Speculative build
Proposed home: Four level split with 1,460 SF on the main and upper level
consisting of a kitchen, dining/living room, three bedrooms and two
bathrooms. The two lower levels could be finished in the future with a
recreation room, one bedroom and one bathroom. There would also be a
three-car attached garage.
C. 5140 Lakeside Avenue North
1) Novak- Fleck*
$55,000 lot price
Custom build
Proposed home: Two story home with 1,934 SF on the main and second
levels consisting of a kitchen, dining, great room, four bedrooms and three
bathrooms. The 880 SF lower level could be finished later. There would also
be a three-car attached garage.
2) Tollberg Homes (staff recommendation)**
$55,000 lot price
Speculative build
Proposed home: Split entry home with 1,246 SF on the main level consisting
of a kitchen, dining/living room, three bedrooms and two bathrooms. The
lower level could be finished in the future with an amusement room, two
bedrooms and one bathroom. There would also be a three -car attached
garage.
Examples: 5924 Elmhurst, 3122 Douglas Dr, 5626 Vera Cruz
On this lot, a variance reducing the front setb ack from 30 to 20 feet would be
necessary. Staff would recommend approval of such a variance based on the
boulevard being 10 feet wider than typical. In other words, with the variance,
the new house’s distance from the street would look about the same as
houses with a standard setback.
* Novak-Fleck only wants the 5140 Lakeside lot as a backup for their
custom build if they don’t get the lot at 5209 49 th.
** Staff recommends the Tollberg proposal for 5140 Lakeside presuming
that the EDA will accept the Novak-Fleck proposal for 5209 49th.
PAGE 4 OF 4
REQUESTED ACTION
The EDA is asked to tentatively accept a proposal for each of the three lots. A separate
motion should be made for each lot.
The staff recommendations are as follows:
A. 5209 – 49th Avenue North: Because Novak-Fleck is offering a custom-designed home
and has a buyer in place, staff recommends that the EDA tentative ly accept the
proposal from Novak-Fleck.
B. 5201 – 49th Avenue North: Because Tollberg’s proposed house would have more
square footage and a four level design that looks like a rambler from the street, staff
recommends that the EDA tentatively accept the proposal from Tollberg.
C. 5140 Lakeside Avenue North: Because Novak-Fleck would only want this lot as a
backup if it can’t do the custom build on 5209 49th, staff recommends that the EDA
tentatively accept the proposal from Tollberg.
A public hearing and final lot sale decision would occur at a special EDA meeting on June 20.
Attachment A1 - Proposal from Novak-Fleck
(custom home) 5209 - 49th
(staff recommendation)
Letter from proposed buyer of 5209 - 49th
Attachment A2 - Proposal from Tollberg Homes
(spec home) - 5209 - 49th
Attachment B1 - Proposal from Novak-Fleck
for spec home - 5201 - 49th
Attachment B2 - Proposal from Tollberg Homes
for spec home - 5201 - 49th
(staff recommendation)
Attachment C1 - Proposal from Novak-Fleck for
custom home - 5140 Lakeside (builder prefers
5209 - 49th, but 5140 Lakeside is second choice)
Letter from proposed buyer of 5140 Lakeside
Attachment C2 - Proposal from Tollberg Homes
for spec home - 5140 Lakeside
(staff recommendation)
City staff and builder propose reducing
the front setback from 30' to 20', which
requires variance approval. The rear yard
30' setback would then be met. The home
at 20' from the front property line would
be in conformance with the location of
other homes on Lakeside.
Page 1 of 1
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
DATE: June 1, 2017
TO: Anne Norris, Executive Director (for June 6 EDA meeting)
SUBJECT: Request from Joe Meyer Homes for an amendment to the Purchase and
Redevelopment Agreement for 4724 Lakeland Avenue North
On April 4, 2017 the EDA held a public hearing and approved a purchase and redevelopment
agreement with Joe Meyer Homes to purchase the lot at 4724 Lakeland Avenue North for
$55,000. The builder was required to close on the property by June 4, 2017. The builder has
not been able to secure financing for the project due to an unforeseen appraisal issue.
Therefore Joe Meyer Homes is requesting a 30-day extension to resolve this issue so that
they may still close on the property. This extension requires an amendment to the signed
agreement. Attached for you review is the request from Joe Meyer Homes for the 30-day
extension.
The EDA has two options in responding to this request:
Adopt a resolution approving this amendment. This resolution will be provided at the
June 6, 2017 EDA meeting. Staff is recommending approval of this option to provide
the builder time to resolve their appraisal issue.
Deny approval of the amendment. A document cancelling the agreement will be
provided at the June 6, 2017 EDA meeting. In that case the builder will forfeit the
$2,000 earnest money they provided at the time the agreement was signed. EDA staff
will then begin marketing the property for sale on a first-come, first-served basis.
REQUESTED EDA ACTION: Approve a request from Joe Meyer Homes to amend the
purchase and redevelopment agreement for 4724 Lakeland Avenue North to allow a 30-day
extension of the closing date.
EDA STAFF REPORT
4724 Lakeland Avenue North – Amend Purchase Agreement