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2020.02.18 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, FEBRUARY 18, 2020 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Consider approval of minutes from the January 7, 2020 meeting, January 9, 2020 work session and February 4, 2020 work session 4. Consider approval of the 2020 Work Program 5. Closed session to determine a price for the sale of 5565 Vera Cruz Ave. N. 6. Closed session to determine whether to make a purchase offer for 4749 Welcome Ave. N. 7. Other business * 8. Adjournment * *Items for which no materials are included in the packet Minutes of the Economic Development Authority of the City of Crystal Annual Organizational Meeting Council Chambers January 7, 2020 1. Call to Order President LaRoche called the work session of the Economic Development Authority of the City of Crystal (EDA) to order at 7:40 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, Brendan Banks, John Budziszewski, Julie Deshler, Therese Kiser, Nancy LaRoche and Olga Parsons. The following staff were present: Executive Director Anne Norris, Deputy Executive Director John Sutter and City Attorney Troy Gilchrist. 3. Election of Officers The Mayor recommended the following slate of EDA officers for 2020: President: LaRoche Vice President: Parsons Secretary: Deshler Treasurer: Banks Moved by Commissioner Parsons (Adams) to approve the Mayor’s recommended slate of EDA officers for 2020. Motion carried. 4. Approval of Minutes Moved by Commissioner Deshler (Banks) to approve the minutes from the December 17, 2019 meeting. Motion carried. 5. Other Business There was no other business. 6. Adjournment Moved by Commissioner Budziszewski (Adams) to adjourn the meeting. Motion carried. The meeting adjourned at 7:46 p.m. Minutes of the Economic Development Authority of the City of Crystal Work Session Council Chambers January 9, 2020 1. Call to Order President LaRoche called the work session of the Economic Development Authority of the City of Crystal (EDA) to order at 6:35 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Julie Deshler, Therese Kiser, Nancy LaRoche and Olga Parsons. The following staff were present: Executive Director Anne Norris, Deputy Executive Director John Sutter, and City Planner Dan Olson. 3. Tabletop exercise to discuss potential redevelopment sites in Crystal’s Town Center zoning districts (Bass Lake Road/West Broadway area). EDA members and staff moved around the room to view and discuss several aerial photos of the Town Center area, market trend information and branding ideas. 4. Adjournment The meeting adjourned at 8:26 p.m. Minutes of the Economic Development Authority of the City of Crystal Work Session Conference Room A February 4, 2020 1. Call to Order Secretary Deshler called the work session of the Economic Development Authority of the City of Crystal (EDA) to order at 7:40 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, Brendan Banks, John Budziszewski, Julie Deshler, and Therese Kiser. The following staff were present: Executive Director Anne Norris and Deputy Executive Director John Sutter. 3. 2019 Annual Report Staff presented the 2019 Annual Report to the EDA. 4. Draft 2020 Work Program. Staff presented the draft 2020 Work Program for review and discussion. 5. Adjournment The meeting adjourned at 8:48 p.m. Approved by EDA February 18, 2020 Staff Contact: John Sutter Community Development Director (763) 531-1130 john.sutter@crystalmn.gov www.crystalmn.gov Branding and Beautification Façade Enhancement Incentive •EDA share would be 50% of qualifying costs paid to property owner upon completion •EDA share secured by a no-interest deferred loan to be forgiven after 5 years •We will seek Henn Co funding (again) •If Henn Co doesn’t provide funding, there will be no program Murals •Identify preferred locations (location, visibility, etc.) •Seek private grants (typically require funds to pass through the city) •Requires buy-in from property owners “Town Center” Branding •Develop logo (in progress) •Use first in development marketing materials •Then roll out to property owners and businesses in the area •Expect a gradual uptake by the community over time -in much the same manner as the neighborhood names which were first coined 20 years ago Branding and Beautification Planter Boxes •8 will be placed on Bass Lake Road as in 2019 •12 more to be placed as follows: -6 on Douglas Dr south of 36th -6 on 42nd Ave from Adair Ave to Douglas Dr •$3,700 estimated expenditure to purchase 12 planter boxes plus $2,000 estimated expenditure for soil and flowers for 20 planters •$5,000 budgeted in Beautification line item (other line items will be below budget) Litter Clean-Up by Sentenced to Service program (STS) •There’s no way to fully control litter, but this makes a noticeable difference •Cost is roughly $385 each time (we get a crew for a day) •Once every three weeks from mid-April -mid-November •$4,300 estimated expenditure •$5,000 budgeted in Rubbish Removal line item Promotion Residential Marketing Package •Focus on quality of life, neighborhoods, city responsiveness & financial practices •Dry run: Presenting to District 281 Realtors’ Forum on April 2 Commercial Marketing Package •Focus on city responsiveness & financial practices, access, workforce •Will include business testimonials Developer Marketing Package •Specific marketing package for the Town Center area •Primarily aimed at developers •Part of Bottineau corridor “Northwest Crossing” marketing efforts Continue membership in Open to Business •Technical assistance at no cost to small business start-ups or expansions •EDA cost is $3,750 per year and matched by Hennepin County •Enhanced outreach and promotion in 2020 concurrent with other efforts Disposition of EDA Property 4824 56th •Could be split into two 52.5’-wide lots for single family homes •Monitoring well will be there at least another year •Hold until early 2021, then reevaluate 5565 Vera Cruz •Attempt to sell to adjacent commercial property owner (flower shop) •If that doesn’t happen, then attempt to rearrange lot lines to create a buildable lot to sell for single family home construction 4741 Welcome •Guided medium density residential -allows up to 7 units on the property •If combined with adjacent property at 4749 Welcome, site could have up to 12 units •Wait to see what happens with 4749 Welcome (currently for sale by auction), then reevaluate Disposition of EDA Property 3443 Douglas Dr and 3443 Edgewood •Vacant lots south and west of Hampton Companies site at 3501 Douglas Dr •Extension of Edgewood north of 34th would be required for development of these and several other lots owned by other parties - may not be feasible •Hold until early 2021, then reevaluate after Hampton Companies assisted living facility is complete 3401-3415 Douglas Dr •Currently in talks with developer interested in the site •Guided medium density residential -allows up to 17 units (presumably townhomes) 3354 Douglas Dr and 6213 34th •Guided medium density residential -allows up to 12 units (presumably townhomes) •Property to south (3342 Douglas Dr) has a single family home on two oversized lots; if combined with current EDA site, could have up to 30 units •Hold until adjacent owner ready to sell for development Disposition of EDA Property 3240 Hampshire •Remnant left over after selling 3244 Hampshire lot for new home in 2000 •South portion not buildable due to soils and wetland issues •North portion (behind 3244) may be buildable but would require driveway, water and sewer from Georgia Avenue -may not be feasible •Hold until early 2021, then reevaluate 3556 Major •Currently for sale for $25,000 for new home construction 3409 June •One of 15 contiguous vacant lots with limited development potential due to steep slope, lack of access and fragmented ownership (there are ten other owners) •Four lots are owned by homeowners on Kyle across the unimproved alley •Attempt to sell to homeowner across alley at 3408 Kyle •If that doesn’t happen, then offer to any owner of other lots in the strip •And if that too doesn’t happen, then continue to hold Major Development Opportunities Staff met with 17 developers (so far) to promote the new Town Center zoning districts (West Broadway / Bass Lake Road area) Several developers have expressed interest in building new multi-family residential in this area due to market demand Later in 2020, we expect to receive one or two development proposals for EDA, Planning Commission and City Council consideration ___________________________________________________________________________ FROM: John Sutter, Community Development Director ___________________________________________________________________________ DATE: February 13, 2020 TO: Anne Norris, City Manager (for February 18 EDA meeting) SUBJECT: Closed session to determine a price for the sale of 5565 Vera Cruz Ave. N. As part of its 2020 Work Program, the EDA has directed staff to attempt to sell the vacant property at 5565 Vera Cruz Avenue North. This 10,458 sq. ft. property is comprised of two parcels in Registered Land Survey #733, Tract A (PID 04-118-21-34-0088) and Tract D (PID 04-118-21-34-0090). It is guided and zoned Commercial. The property had been a neighborhood code enforcement problem going back to the early 1990s. This was the main reason the EDA acquired it from the State of Minnesota in 2011 after the property went through tax forfeiture. The EDA then demolished the dilapidated commercial building and parking lot. Staff estimates the cumulative EDA expenditures on this property are approximately $103,000 to date, comprised of the following: 63,000 Acquisition 12,000 Demolition 5,000 Mowing 23,000 2016 street reconstruction assessment It would be unrealistic to expect anything close to full cost recovery, as this property was only purchased to remove a blighted building and protect the neighborhood. As to what the property is worth, there have been no comparable commercial property sales in Crystal in recent years. Also, Tract D (the southwesterly portion of the property) is encumbered by a driveway easement running in favor of the adjacent flower shop. Staff opinion is that a land price of $4-6 per sq. ft. would be reasonable based on a handful of somewhat similar sites along Brooklyn Boulevard in Brooklyn Center. Staff recommends making an offer to sell the property to the adjacent business property owner (Rose-Bo Floral and Gift). To that end, staff requests that the EDA move into closed session as allowed by law to determine an acceptable sale price for the property, and then enter into negotiations with the owner of the adjacent business property. If those negotiations are successful, a public hearing and EDA action to consider approving the sale would be placed on a subsequent EDA meeting agenda. EDA STAFF REPORT 5565 Vera Cruz Determine Sale Price (Closed Session) 2002 Aerial Photo 2018 Aerial Photo Property Survey ___________________________________________________________________________ FROM: John Sutter, Community Development Director ___________________________________________________________________________ DATE: February 13, 2020 TO: Anne Norris, City Manager (for February 18 EDA meeting) SUBJECT: Closed session to determine whether to make a purchase offer for 4749 Welcome Ave. N. As part of its 2020 Work Program, the EDA has directed staff to explore the possibility of purchasing a vacant, foreclosed house at 4749 Welcome Avenue North. This property is directly north of a vacant lot at 4741 Welcome already owned by the EDA. Both properties are guided and zoned Medium Density Residential which would allow up to 5 units at 4749, 7 units at 4741, and 12 units if both parcels were combined. The house at 4749 has been vacant for more than a year. The Sheriff’s sale occurred on July 1, 2019 and the bank took title upon redemption expiry on January 2, 2020. The bank has put the property up for online auction. One auction has been completed but the bank refused to accept the highest bid of $137,500 and has scheduled another auction for February 16-18. If that auction also fails, the bank will possibly schedule a third auction. If the EDA would like staff to make an offer at that time, staff would need to the EDA to determine how much to offer, and suggests that be done in closed session as allowed by law. Facts and observations about 4749 Welcome: • The house is a 912 sq. ft. rambler with no basement. • The property also has a 816 sq. ft. 3-car detached garage and driveway off the alley. • The house has a living room, kitchen, laundry room, two bedrooms and one bathroom. • Staff viewed the house and our opinion is that it will need significant investment, including mostly cosmetic repairs but also a new furnace and possibly some structural rehabilitation. However, in today’s market, the house is not an obvious candidate for demolition. This is probably why the bank refused to accept the high bid of $137,500. • The Hennepin County Assessor’s estimated market value is $166,000 as of January 2020. If the EDA desires to make an offer on the property, the EDA could close the meeting to discuss how much to offer. Any actual purchase of the property would require EDA action at a subsequent meeting. If the EDA does not desire to make an offer, then no action is required. EDA STAFF REPORT 4749 Welcome Determine Offer Price (Closed Session) 2018 Aerial Photo House Front House Rear