2018.04.17 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL REGULAR MEETING TUESDAY, APRIL 17, 2018 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from March 20, 2018 regular meeting 4. Public Hearing to consider a resolution approving the sale of an EDA lot at 5612 Adair Avenue North to Novak-Fleck for construction of a new single family home 5. Public Hearing to consider a resolution approving the sale of an EDA lot at 5618 Adair Avenue North to Tollberg Homes for construction of a new single family home 6. Consider a resolution authorizing the use of available tax increment for the Bass Lake Road Streetscape project 7. Other business * 8. Adjournment * *Items for which no materials are included in the packet
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Minutes of the Economic Development Authority of the City of Crystal Regular Meeting March 20, 2018 1. Call to Order President Parsons called the regular meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:33 p.m. 2. Roll Call 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: Kim Therres, Acting City Manager, John Sutter, Deputy Executive Director, Dan Olson, City Planner, and Troy Gilchrist, City Attorney. 3. Approval of Minutes Motion by Commissioner Deshler (LaRoche) to approve the minutes of the March 6, 2018 regular meeting. Motion carried. 4. 5612 Adair - Tentative Acceptance of Proposal The EDA considered a proposal from Novak-Fleck to purchase an EDA lot at 5612 Adair Avenue North for construction of a new single family home. Mr. Olson presented the staff report. Motion by Commissioner Deshler (Kolb) to tentatively accept a proposal from Novak-Fleck to purchase an EDA lot at 5612 Adair Avenue North for construction of a new single family home. Motion carried. 5. 5618 Adair - Tentative Acceptance of Proposal The EDA considered a proposal from Tollberg Homes to purchase an EDA lot at 5618 Adair Avenue North for construction of a new single family home. Mr. Olson presented the staff report. Motion by Commissioner Adams (Budziszewski) to tentatively accept a proposal from Tollberg Homes to purchase an EDA lot at 5618 Adair Avenue North for construction of a new single family home. Motion carried.
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6. Other Business There was no other business. 7. Adjournment Motion by Commissioner LaRoche (Budziszewski) to adjourn. Motion carried. The meeting adjourned at 7:41 p.m. ______________________________ Olga Parsons, President ATTEST: ______________________________ Elizabeth Dahl, Secretary
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, City Manager (for April 17 EDA Meeting)
DATE: April 12, 2018
RE: PUBLIC HEARING: Consider resolution authorizing the sale of lot at
5612 Adair Avenue North for construction of new home
Novak Fleck, a Minnesota Residential Building Contractor with no enforcement actions,
has submitted a proposal to purchase the lot at 5612 Adair Avenue North for $55,000.
The EDA tentatively accepted the builder’s proposal on March 20, 2018. There have
not been any changes to the site or building plan since that tentative approval.
Attached are an aerial photo and preliminary site and building plans for a new home
with an attached three-car garage. The house would have approximately 1,669 finished
square feet comprised of 988 square feet on the main level with an open living -dining-
kitchen area, two bedrooms and a bathroom and 681 square footage on the lower level,
with an additional bedroom, bathroom, laundry room, and family room. Similar homes
were built in 2012 by Novak-Fleck on other EDA lots (4553 Hampshire and 3548
Regent). The builder does not yet have a buyer for the home at 5612 Adair Avenue
North.
On this lot a variance reducing the rear yard setback fro m 30 to 10 feet would be
requested by Novak Fleck. For this corner lot the north side of the property is defined as
the rear yard and the home will face Adair Avenue on the west side of the property.
Because of the lot width there will not be a lot of ope n space behind the home.
Locating the home closer to the north property line will allow for a larger open space on
the Bass Lake Road side of the property. Staff would recommend approval of such a
variance in order to create that open space. With the va riance the new house’s
distance from the proposed adjacent home will look about the same as houses with a
standard side yard setback. The Planning Commission reviewed the variance request
on April 9 and it will be considered by the City Council on April 17.
For 5612 Adair, if on April 17 the EDA adopts the attached resolution, and the City
Council approves the variance on April 17, then the lot sale would close soon after.
Construction would begin after closing with completion anticipated by fall 2018.
EDA STAFF REPORT
PUBLIC HEARING
5612 Adair Avenue North – Sale of lot to Novak Fleck
REQUESTED EDA ACTION: After holding the public hearing and receiving any
testimony, consider adopting the attached resolution authorizing the property sale of
5612 Adair Avenue North to Novak Fleck.
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2018 - 04
A RESOLUTION AUTHORIZING THE SALE OF
5612 ADAIR AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 5612 Adair Avenue North, to be platted as:
Lot 2, Block 1, Crystal Economic Development Authority Eighth 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 17th day of April, 2018.
____________________________________
Olga Parsons, President
____________________________________
Anne Norris, Executive Director
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, City Manager (for April 17 EDA Meeting)
DATE: April 12, 2018
RE: PUBLIC HEARING: Consider resolution authorizing the sale of lot at
5618 Adair Avenue North for construction of new home
Tollberg Homes has submitted a proposal to purchase the lot at 5618 Adair Avenue
North. The lot price is $55,000. T ollberg is a state-licensed residential building
contractor with no enforcement actions. The EDA tentatively accepted the builder’s
proposal on March 20, 2018. There have not been any changes to the site or building
plan since that tentative approval.
Attached are an aerial photo and preliminary site and building plans for a new 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 an additional bedroom, a bathroom, and family
room. Similar homes have been built by Tollberg on other EDA lots, most recently at
4724 Lakeland Avenue. The builder does not yet have a buyer for the home at 5618
Adair Avenue North.
Please note that the encroachment of the garage corner into the 30’ front setback is
permitted by the unified development code (UDC) and does not require a variance.
For 5618 Adair, if on April 17 the EDA adopts the attached resolution, then the lot sale
would close soon after. Construction would begin after closing with completion
anticipated by fall 2018.
REQUESTED EDA ACTION: After holding the public hearing and receiving any
testimony, consider adopting the attached resolution authorizing the property sale of
5618 Adair Avenue North to Tollberg Homes.
EDA STAFF REPORT
PUBLIC HEARING
5618 Adair Avenue North – Sale of lot to Tollberg Homes
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2018 - 05
A RESOLUTION AUTHORIZING THE SALE OF
5618 ADAIR AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 5618 Adair Avenue North, to be platted as:
Lot 1, Block 1, Crystal Economic Development Authority Eighth 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 Property 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 17th day of April, 2018.
____________________________________
Olga Parsons, President
____________________________________
Anne Norris, Executive Director
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_____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: April 12, 2018 TO: Anne Norris, Executive Director (for April 17 EDA meeting) SUBJECT: Consider a resolution authorizing the use of available tax increment for the Bass Lake Road Streetscape project SUMMARY The city is planning to use available increment from the expired TIF District #2151 (Anthony Center/Cub Foods) for part of the financing for the Bass Lake Road Streetscape project. At this time there is a $333,661.06 balance in that district which may be used for qualifying improvements anywhere in the redevelopment project area. UPDATED BUDGET Construction Subtotal 545,272 Contract with Pember Companies 10% Contingency 54,527 Construction Total 599,799 200,000 26,727 333,661 39,411 Construction Engineering 35,861 35,861 Materials Testing 2,000 2,000 TOTAL PROJECT COST 637,660 200,000 26,727 333,661 37,861 39,411
HENN CO HENN CO TIF #2151 EDA STREET
TOD TRANSP LIGHT GRANT DEPT UTILITY
EDA STAFF REPORT Authorize use of TIF for Bass Lake Road Streetscape
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ATTACHMENTS Redevelopment Project Area map Resolution authorizing use of TIF for the Bass Lake Road Streetscape project REQUESTED EDA ACTION EDA adoption of the attached resolution is requested.
N
0 0.25 0.5 Miles
City of Cr ys tal
Key:
EXISTING
ADDED 12/1/2008
NOT IN PROJECT AREA
TIF 1
TIF 2
TIF 3
TIF 4
Project Area Boundary
Redevelopment
Project Area
TIF 3
(Expires 12/2026)
(Expires 12/2016)
TIF 2
(Expires 12/2025)
TIF 4
(Expired 12/2009)
TIF 1
(Closed 12/2012)
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2018 - 06 A RESOLUTION AUTHORIZING THE USE OF AVAILABLE TAX INCREMENT FOR THE BASS LAKE ROAD STREETSCAPE PROJECT WHEREAS, the Bass Lake Road streetscape has deteriorated to a blighted condition; and; WHEREAS, the City of Crystal (“City”) is proposing to reconstruct the streetscape and make related improvements along Bass Lake Road, also known as City Project 2018-07 (“Project”); and WHEREAS, the Project is located in the Redevelopment Project Area; and WHEREAS, the Project includes site improvements, utilities and other public improvements which are qualifying improvements included in the adopted plan and budget for Tax Increment Financing District #2-1 2151 (“District”); and WHEREAS, the District’s budget for site improvements, utilities and other public improvements has not been fully expended; and WHEREAS, the District has available increment which may be used for qualifying improvements in the Redevelopment Project Area. NOW, THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL: 1. The Bass Lake Road Streetscape is currently in a blighted condition requiring full reconstruction and related improvements; and 2. The expenditure of available increment from TIF District #2-1 2151 is authorized for site improvements, utilities and other public improvements that comprise the Bass Lake Road Streetscape Project, also known as City Project 2018-07. Adopted this 17th day of April, 2018. ____________________________________ Olga Parsons, President ____________________________________ Anne Norris, Executive Director