2021.05.04 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, MAY 4, 2021
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 2, 2021 Regular Meeting
4. Consider tentative acceptance of proposal for construction of a new residential building
at 4741 Welcome Avenue North
5. Consider a resolution authorizing an application for Hennepin County Business District
Initiative funds for a storefront improvement program
6. Update on development activity and 2021 Work Program *
7. Other business *
8. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 2
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
March 2, 2021
1. Call to Order
Vice President Banks called the meeting of the Economic Development Authority of the
City of Crystal (EDA) to order at 6:45 p.m.
2. Roll Call
Upon call of the roll, the following members were present: Jim Adams, Brendan Banks,
John Budziszewski, David Cummings, Therese Kiser and Nancy LaRoche.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner Adams (Budziszewski) to approve the minutes from the
February 16, 2021 regular meeting. Motion carried with Commissioners Adams, Banks,
Budziszewski, Cummings, Kiser and LaRoche voting aye.
4. Consider a resolution approving a Tax Increment Financing Plan Modification for
District #4
Mr. Sutter presented the plan modification and a resolution for EDA approval.
Moved by Commissioner Budziszewski (LaRoche) to adopt the resolution approving a
Tax Increment Financing Plan Modification for TIF District #4. Motion carried with
Commissioners Adams, Banks, Budziszewski, Cummings, Kiser and LaRoche voting aye.
5. Other Business
There was no other business
6. Adjournment
Moved by Commissioner Budziszewski (Kiser) to adjourn the meeting. Motion carried
with Commissioners Adams, Banks, Budziszewski, Cummings, Kiser and LaRoche
voting aye.
The meeting adjourned at 8:25 p.m.
Page 2 of 2
These minutes of the March 2, 2021 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Olga Parsons, President
ATTEST:
______________________________
Therese Kiser, Secretary
Page 1 of 3
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, City Manager (for May 4 meeting)
DATE: April 29, 2021
RE: Consider tentative acceptance of proposal for construction of a new
residential building at 4741 Welcome Avenue North
In 2020 the EDA began seeking proposals from builders to purchase the vacant lot at
4741 Welcome Avenue North for $100,000 and construct a new residential building of
2-6 units. Two proposals have been received for a new 4-unit residential building.
The two builders are Amani Construction and Gernco Construction:
• Both are licensed builders with no enforcement actions
• Neither has ever purchased a lot from the City of Crystal or the Crystal EDA
• Both only have experience in single-family home construction
Staff requests that the EDA discuss the two proposals and consider a motion to
tentatively accept one of them (specify __ Amani or __ Gernco).
Upon tentative acceptance of a proposal by the EDA, staff will work with the selected
builder to finalize the site and building plans, have the EDA attorney prepare the
Purchase and Development Agreement, publish the public hearing notice in the Sun
Post, notify adjacent property owners by mail and post it to the surrounding
neighborhoods on Nextdoor.
The EDA public hearing and authorization of the lot sale would occur on June 1.
However, the anticipated timeline then varies significantly for each builder (please see
bottom of page 3).
Attachments:
A. Amani Construction proposal
B. Gernco Construction proposal
EDA Staff Report
Lot Sale – Tentative Acceptance
4741 Welcome Avenue North
Page 2 of 3
2018 Aerial Photo:
Page 3 of 3
COMPARISON OF THE TWO PROPOSALS
Project Element Amani Gernco
Owned or rented Owner occupied; a
homeowner’s association
will be required to maintain
common elements
Rented; builder may
choose to live in one of the
units (but this will not be
mandated)
Number and type of units 4 units - attached (will be
replatted as townhomes or
condominiums so each unit
can be sold separately)
4 unit apartment building
but will look like townhomes
(each unit will have private
entrances/garages but may
not be sold separately)
Size of each unit 1,700 – 1,800 SF Units 1 & 4 are 1,800 SF
Units 2 & 3 are 1,300 SF
Building height 2 story, except for a 1-story
section between the units
that will allow for 2nd floor
windows on all sides
2 story
No. bedrooms & bathrooms 3-4 BR and 2½ BA per unit 3 BR and 1½ BA per unit
Attached garage size 400 SF 340 SF
Basement No Yes (finishable)
Variances requested Yes – to north & south side
setbacks
Yes – to all setbacks (front,
rear, and both sides)
Project dependent on
award of government
funding
Yes - builder is applying to
MHFA’s Impact Fund,
which finances affordable
owner-occupied units
No
Anticipated Timeline 6/1 - EDA lot sale hearing
7/30 - apply to MHFA
9/13 - submit UDC appl.
(site plan & variance)
10/11 - PC hearing
10/19 - CC action
10/29 - sign development
agreement and provide
$2,000 earnest money
12/17 - lot purchase closing
2022 or 2023 - construction
6/1 - EDA lot sale hearing
6/14 - submit UDC appl.
(site plan & variance)
7/12 - PC hearing
7/20 - CC action
7/30 - sign development
agreement and provide
$2,000 earnest money
9/17 - lot purchase closing
2021 or 2022 - construction
PROPOSAL FORM
PROPOSAL TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
4741 WELCOME AVENUE NORTH
LOTS 3 AND 4 (EXCEPT FOR THE SOUTH 40’), BLOCK 2, TWIN LAKE ADDITION
BUILDER OFFERS TO PURCHASE THIS LOT FOR $________________ (MINIMUM IS $100,000)
This proposal is not a purchase agreement or other binding contract. At this time, the Builder is submitting a proposal to
purchase this lot from the Economic Development Authority of the City of Crystal (EDA) and build a new residential
building on the lot in accordance with the Proposal Guidelines. If, after a public hearing, this proposal is accepted by the
EDA Board, then the Builder would sign a Purchase & Development Agreement and provide $2,000 earnest money for the
lot. Only after such Agreements are signed would a binding contract exist between the EDA and the Builder.
BUILDER: (Builder must be a Residential Building Contractor licensed by the State of Minnesota. Alternatively, a
Contractor Registration with the state may be acceptable, depending on the contractor’s history and qualifications.)
Name: ________________________________________________ State License Number: ____________________
Tel (1): ________________________ Tel (2): __________________________ Fax: _________________________
Address: ________________________________________ City/State/Zip:__________________________________
Email: __________________________________________ _______________________________ _____________
Signature Date
REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION:
Approximate/example illustration of the type of building you would build on this lot.
The EDA will only sell lots to builders who have experience in residential construction larger than a single-family
dwelling in Minnesota. Please list the addresses of three buildings you have built in Minnesota within the last five
years, or attach other evidence of qualification for review by the city:
Building #1: ______________________________________________________________
Building #2: ______________________________________________________________
Building #3: ______________________________________________________________
SUBMIT PROPOSAL TO:Dan Olson, City of Crystal, 4141 Douglas Dr N, Crystal MN 55422
763.531.1142 or dan.olson@crystalmn.gov
Proposals may be submitted by hand delivery, U.S. Mail, or email (pdf format)
***PROPOSALS MAY BE SUBMITTED AT ANY TIME AND WILL BE CONSIDERED ON A “FIRST COME,
FIRST SERVED” BASIS***
100,000.00
Amani Construction & Renovations LLC BC674531
612.232.7264
7308 Aspen Lane N Ste 101 Brooklyn Park MN 55443
jkuria@amaniconstruction.com
8048 Idaho Circle N, Brooklyn Park
3315 Thomas Avenue N, Minneapolis
4200 Colfax Avenue N, Minneapolis
04/20/2021
City/State/Zip:________
___________________
Signature
Brook
Attachment A
30'-0"30'-0"42'-0"1234WELCOME
ALLEY
10'-0"42'-0"50'-0"10'-0"12'-0"2-CAR2-CAR2-CAR2-CARENTRANCEPATIO ONE STORYENTRANCEPATIO
Attachment B
Combined Multiunit Experience
Introducing: Ken White
Affiliations: Angle Rite Construction LLC and Gernco Construction LLC.
Ken White is the project manager for Gernco Construction LLC and will be directly involved in the
execution of the Four-plex at 4741 Welcome Avenue North.
Ken White have the experience of Framing the following Multiunit townhomes, as a Sub-contractor
(1) 5674-5684 Winnetka Avenue North (Six Unit Townhomes).
(2) 4709 -4717 58th Avenue North (Twin homes).
(3) 1480-1490 Waterford Dr (Twin homes).
Contact: Ken White
763-772-5529
Anglerite@yahoo.com
6018 June Avenue N, Brooklyn Center, MN 55429
___________________________________________________________________________
FROM: John Sutter, Community Development Director
___________________________________________________________________________
DATE: April 29, 2021
TO: Anne Norris, Executive Director (for May 4 EDA meeting)
SUBJECT: Consider a resolution authorizing an application for Hennepin County
Business District Initiative funds for a storefront improvement program
The 2021 EDA Work Program includes an intention to help finance storefront improvements in
the city’s older commercial strips by seeking funding from Hennepin County. A resolution of
support from the EDA would help ensure the most competitive application possible.
The proposed storefront improvement program would operate as follows:
•The application seeks $50,000 from the Hennepin County Business District Initiative to
finance storefront improvements such as facades and signage for older buildings within
particular business districts in Crystal.
•County funds may not be used for administrative expenses or other “soft” costs. Such
expenses would be paid out of existing EDA budget line items such as legal services (to
develop the loan documents) and professional services (architects or drafters to ensure the
design quality of the improvements). This is the same approach used by the City of
Hopkins for their very successful façade improvement program.
•The storefront improvement assistance would be provided in the form of a deferred,
forgivable, no interest loan for 50% of the project cost.
•The deferred loan would have a 10-year term and the balance would be reduced by 10%
each year. If the property is sold during the 10-year term, full repayment of the remaining
loan balance would be required. Any repayments would be used to capitalize a revolving
loan fund for Crystal to continue the program after the county funding is exhausted.
•The minimum project would $10,000 (meaning a $5,000 forgivable loan). There would be
no maximum project but the maximum forgivable loan would be $25,000.
•The county board expects to make its funding awards this summer.
•If the county funds our application, then staff would bring the specific grant agreement and
program details to the EDA for consideration of final approval of the program.
EDA adoption of the attached resolution is requested.
EDA STAFF REPORT
Hennepin County Business
District Initiative Application -
Storefront Improvement Program
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021-02
RESOLUTION SUPPORTING AND ENDORSING AN APPLICATION
FOR HENNEPIN COUNTY BUSINESS DISTRICT INITIATIVE FUNDS
TO ESTABLISH A STOREFRONT IMPROVEMENT PROGRAM
WHEREAS, a key City Council priority is to create a thriving business climate; and
WHEREAS, the city’s Economic Development Authority has determined that the city should
establish an incentive program to encourage business properties to improve their storefronts
including elements such as building facades and signage; and
WHEREAS, the city Economic Development Authority budget does not include sufficient
funding to finance storefront improvements; and
WHEREAS, Hennepin County has called for proposals for its 2021 Business District Initiative
program and storefront improvements are an eligible use of funds for that program.
NOW THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CRYSTAL, MINNESOTA, that the application for a grant from the Hennepin
County Business District Initiative is hereby supported and endorsed for the purpose of
establishing a storefront improvement program for three specific business districts in the city,
with eligibility being limited to the properties listed in Exhibit A to this Resolution.
Adopted this 4th day of May, 2021.
_______________________________
Olga Parsons, President
_______________________________
Anne Norris, Executive Director
EXHIBIT A
Properties Eligible for Crystal Storefront Improvement Program
Location Map
▲
NORTH
Eligible Parcel Information
(A) 6300-6600 56th Ave. N. / Bass Lake Road (CSAH 10)
2020 Aerial Photo showing Eligible Parcels in Business District
2019 Street Views
(B) 6000-6304 42nd Ave. N. / Rockford Road (CSAH 9)
2020 Aerial Photo showing Eligible Parcels in Business District
2019 Street Views
(C) 3528-3600 Douglas Dr. N. (CSAH 102)
2020 Aerial Photo showing Eligible Parcels in Business District
2019 Street Views