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2022.10.03 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL •REGULAR MEETING • MONDAY, OCTOBER 3, 2022 6:45 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1.Call to order * 2.Roll call * 3.Approval of minutes from September 6, 2022 regular meeting 4. Consider resolutions discharging discriminatory restrictive covenants on EDA-owned land: a. 6428 56th Ave. N. b.3401 and 3443 Douglas Dr. N. 5.Property status update * 6.Other business * 7. Adjournment * *Items for which no materials are included in the packet Page 1 of 3 Minutes of the Economic Development Authority of the City of Crystal Regular Meeting Council Chambers September 6, 2022 1. Call to Order President Banks called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 6:02 p.m. 2. Roll Call Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan Banks, David Cummings, 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. Approval of Minutes Moved by Commissioner Adams (LaRoche) to approve the minutes from the June 21, 2022 regular meeting. Motion carried. 4. Consider a resolution adopting a proposed 2023 EDA budget and HRA tax levy. Staff presented information about the proposed budget and tax levy. Moved by Commissioner LaRoche (Adams) to approve the resolution adopting a proposed 2023 EDA budget and HRA tax levy. Motion carried. 5. Property Status Update Staff updated the board on several current and potential projects:  5526 West Broadway (former Pizza Ranch space) - will be divided into two separate spaces, a restaurant and bar taking the kitchen and dining spaces, and a tobacco shop with sampling area taking the party room and arcade spaces.  3501 Douglas Dr (Crystal Suite Living) - completed and opened.  227 Willow Bend (former Police Dept. Community Outreach Office) - Aqua Coin Laundry is getting close to opening.  5208 Hanson Ct (former site of Crystal Auto Parts) - a contractor has purchased the site to build an office/warehouse for their business. Page 2 of 3 5358 West Broadway (former Burger King) - Hyder Investments, which owns the Crystal McDonald’s and ten others around the metro, is finalizing their construction plans to renovate the building for their corporate office. 3600 Douglas Dr (former Pizza Hut) - Wine Thief & Ale Jail is securing financing and contractors to renovate the building with a goal of opening in early 2023. 7.Other Business There was no other business. 8. Adjournment Moved by Commissioner Adams (Parsons) to adjourn the meeting. Motion carried. The meeting adjourned at 6:14 p.m. Page 3 of 3 These minutes of the June 21, 2022 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Brendan Banks, President ATTEST: ______________________________ Nancy LaRoche, Secretary Page 1 of 2 ___________________________________________________________________________________ FROM: John Sutter, Community Development Director TO: Anne Norris, City Manager (for October 3 meeting) DATE: September 29, 2022 SUBJECT: Consider a resolution discharging discriminatory restrictive covenants on EDA-owned land ___________________________________________________________________________________ During the first half of the 20th century, some developers and property owners imposed discriminatory restrictive covenants when selling real estate. While discriminatory restrictive covenants have not been enforceable since a 1948 U.S. Supreme Court decision, and such discrimination was outlawed in Minnesota in 1962 and nationwide in 1968, these covenants helped create persistent segregation and disparities. The Just Deeds project was initiated by Golden Valley to bring attention to the effects of these covenants and offer a way for property owners to renounce them. Along with other cities, Crystal has been participating in Just Deeds since March 1, 2021. In addition to helping Crystal property owners identify and discharge discriminatory restrictive covenants on their property, the city has identified three EDA-owned properties with covenants: •6428 56th Ave. N. (parking lot) * - covenants imposed in 1947 •3401 Douglas Dr. N. (vacant lot) - covenants imposed in 1927 •3443 Douglas Dr. N (vacant lot) - covenants imposed in 1928 *6428 56th was acquired in 1986 by the city’s Housing and Redevelopment Authority which was later supplanted by the city’s Economic Development Authority. 3401 and 3443 Douglas were acquired by the EDA in 2009. While the EDA is the HRA’s successor in ownership of 6428 56th, a separate and slightly different resolution is needed for that property. The City Attorney has prepared a document for each property that would discharge its discriminatory restrictive covenant. EDA STAFF REPORT Discharging Discriminatory Restrictive Covenants on EDA Land Page 2 of 2 Attachments: A.Proposed resolution authorizing execution of the discharge document for the HRA/EDA property at 6428 56th Ave. N. B.Proposed resolution authorizing execution of the discharge documents for the EDA properties at 3401 and 3443 Douglas Dr. N. C.Mapping Prejudice maps of Hennepin County and Crystal area covenants D.March 14, 2022 memo - Crystal Just Deeds 2021 activity summary E.Map - Location of EDA-owned properties with discriminatory restrictive covenants F.Discharge document for 6428 56th Ave. N. G.Discharge document for 3401 Douglas Dr. N. H.Discharge document for 3443 Douglas Dr. N. City Council adoption of the attached resolutions is requested, with separate motions on each resolution (a) and (b). ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2022 - 03 RESOLUTION DISCHARGING A DISCRIMINATORY RESTRICTIVE COVENANT WHEREAS, the Economic Development Authority of the City of Crystal (“EDA”) is the successor in ownership to the Housing and Redevelopment Authority for the City of Crystal (“HRA”) of real property located at 6428 56th Avenue North (“Property”); and WHEREAS, a key City of Crystal priority is to build an inclusive community so that all feel welcome; and WHEREAS, the EDA has determined that, in 1947, a discriminatory restrictive covenant was imposed on the Property prior to it becoming owned by the HRA or EDA, and the covenant remains on the property title to this day even though it has no current effect; and WHEREAS, a 2019 state law established a process for property owners to formally discharge discriminatory restrictive covenants; and WHEREAS, the EDA finds that discharging discriminatory restrictive covenants from property owned by the EDA is one step in building an inclusive community so that all feel welcome. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of the City of Crystal that the President and Executive Director are authorized to execute and record the Discharge of Restrictive Covenant for the EDA-owned property at 6428 56th Avenue North. Adopted this 3rd day of October, 2022. ____________________________________ Brendan Banks, President ____________________________________ Anne Norris, Executive Director ATTACHMENT A ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2022 - 04 RESOLUTION DISCHARGING DISCRIMINATORY RESTRICTIVE COVENANTS WHEREAS, the Economic Development Authority of the City of Crystal (“EDA”) is the owner of real properties located at 3401 and 3443 Douglas Drive North (“Properties”); and WHEREAS, a key City of Crystal priority is to build an inclusive community so that all feel welcome; and WHEREAS, the EDA has determined that, in 1927 and 1928, respectively, discriminatory restrictive covenants were imposed on the Properties prior to them becoming owned by the EDA, and the covenants remain on the property titles to this day even though they have no current effect; and WHEREAS, a 2019 state law established a process for property owners to formally discharge discriminatory restrictive covenants; and WHEREAS, the EDA finds that discharging discriminatory restrictive covenants from property owned by the EDA is one step in building an inclusive community so that all feel welcome. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of the City of Crystal that the President and Executive Director are authorized to execute and record the Discharge of Restrictive Covenant for the EDA-owned properties at 3401 Douglas Drive North and 3443 Douglas Drive North. Adopted this 3rd day of October, 2022. ____________________________________ Brendan Banks, President ____________________________________ Anne Norris, Executive Director ATTACHMENT B ATTACHMENT C Memorandum Date: March 14, 2022 To: Anne Norris, City Manager From: John Sutter, Community Development Director Subject: Just Deeds - 2021 Summary During the first half of the 20th century some property owners imposed discriminatory restrictive covenants when selling real estate. The Just Deeds project was initiated by Golden Valley to bring attention to the effects of these covenants and offer a way for property owners to renounce them. Crystal has been participating in Just Deeds since March 1, 2021. For more information please view the city’s Just Deeds web page at https://www.crystalmn.gov/resident/community_development/just_deeds_coalition. In addition to Golden Valley and Crystal, the following cities are participating in the project: Bloomington, Edina, Hopkins, Minneapolis, Minnetonka, New Hope, Richfield, Robbinsdale, Rochester, St. Anthony, St. Louis Park and Wayzata. From March 1 - December 31, 2021 Crystal received 36 requests. I have attached a map showing the locations of these requests. Here are the outcomes/status of those requests: •5 covenants were renounced by the property owner (Abstract properties) or removed by the Examiner of Titles (Torrens properties) with assistance from our two pro bono attorneys, Corinne Heine and Kristi Anderson. •6 properties had covenants in the past but our pro bono attorneys verified that they had previously been removed by the Examiner of Titles (Torrens properties). •17 properties were confirmed by Guaranty Title to have never had a covenant. •8 requests are awaiting covenant determination by Dorsey & Whitney, who took over that work for Guaranty Title. Both firms have been doing this work as no cost. Please let me know if you have questions or would like additional information. Thank you. ATTACHMENT D 2021 Just Deeds Requests Received City of Crystal HRA/EDA-Owned Properties with Discriminatory Restrictive Covenants ATTACHMENT E DOCSOPEN\CR205\30\705900.v6-8/10/22 (Top 3 inches reserved for recording data) _____________________________________________________________________________________________ DISCHARGE OF RESTRICTIVE COVENANT AFFECTING Minnesota Uniform Conveyancing Blanks PROTECTED CLASSES Form 40.10.1 (2019) Minn. Stat. 507.18 _____________________________________________________________________________________________ Pursuant to Minnesota Statutes, Section 507.18, any restrictive covenant affecting a protected class, including covenants which were placed on the real property with the intent of restricting the use, occupancy, ownership, or financing because of a person’s race, color, creed, national origin, or religious beliefs, is discharged and released from the land described herein. State of Minnesota, County of Hennepin The Housing and Redevelopment Authority in and for the City of Crystal, a public body corporate and politic under Minnesota Law, having an ownership or other interest in all or part of the real property described herein, solemnly swear that the contents of this form are true to the best of its knowledge, except as to those matters stated on information and belief, and that as to those matters it believes them to be true. Name and Address of Owner: The Housing and Redevelopment Authority in and for the City of Crystal 4141 Douglas Drive North Crystal, MN 55422 The real property owned by Owner is located in Hennepin County, Minnesota, and is legally described as follows: Lot 18, Block 5, “KENSEY MANOR,” according to the plat thereof on file or of record in the Office of the Registrar of Titles for Hennepin County, Minnesota, subject to easements of record. Torrens Certificate No. 1199646 Owner, the Housing and Redevelopment Authority in and for the City of Crystal, swears and affirms that the information provided in this form is true and correct based on the information available and based on reasonable information and belief. ATTACHMENT F DOCSOPEN\CR205\30\705900.v6-8/10/22 Page 2 of 2 Minnesota Uniform Conveyancing Blanks Form 40.10.1 (1)A restrictive covenant which had the intent to restrict the use, occupancy, ownership, or financing of this property based on a protected class, including race, color, creed, national origin, or religion, existed at one time related to the property described in this form; (2)the restrictive covenant is contained in an instrument dated November 19, 1947, and recorded as Document No. 253820 (or in Book ________ of _________, Page ________) on November 20, 1947, in the Office of the County Registrar of Hennepin County, Minnesota, which is attached herein as Exhibit A; (3)restrictive covenants relating to or affecting protected classes are unenforceable and void pursuant to Minnesota Statutes, sections 507.18 and 363A.09, the United States Constitution, and the Minnesota Constitution; (4)Minnesota Statutes, section 507.18, provides for the discharge of a restrictive covenant of the nature described herein through the use of this statutory form to permanently discharge such covenants from the land described herein and release the current and future landowner(s) from any such restrictive covenant related to or affecting protected classes; (5)the instrument containing such restrictive covenants shall have full force in all other respects and shall be construed as if no such restrictive covenant was contained therein; and (6)the filing of this form does not alter or change the duration or expiration of covenants, conditions, or restrictions under Minnesota Statutes, section 500.20. The affiant knows the matters herein stated are true and makes this affidavit for the purpose of documenting the discharge of the illegal and unenforceable restrictive covenants affecting protected classes. _________________________________________________ Affiant (Owner’s signature) __________________________________________________ Affiant (Owner’s signature) Signed and sworn to before me on _______________, 2022, by ___________________________________, and ___________________________________ , the ______________________________ and ___________________, respectively, of the Housing and Redevelopment Authority in and for the City of Crystal, a public body corporate and politic under Minnesota Law. ____________________________________________________________ (signature of notarial officer) Notarial Seal Title (and Rank): ___________________________________ My commission expires: _____________________________ THIS INSTRUMENT WAS DRAFTED BY: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 (612)337-9300 DOCSOPEN\CR205\30\705900.v6-8/10/22 EXHIBIT A DOCSOPEN\CR205\30\705900.v6-8/10/22 DOCSOPEN\CR205\30\705900.v6-8/10/22 DOCSOPEN\CR205\30\705900.v6-8/10/22 DOCSOPEN\CR205\30\705900.v6-8/10/22 DOCSOPEN\CR205\30\707012.v8-8/10/22 (Top 3 inches reserved for recording data) _____________________________________________________________________________________________ DISCHARGE OF RESTRICTIVE COVENANT AFFECTING Minnesota Uniform Conveyancing Blanks PROTECTED CLASSES Form 40.10.1 (2019) Minn. Stat. 507.18 _____________________________________________________________________________________________ Pursuant to Minnesota Statutes, Section 507.18, any restrictive covenant affecting a protected class, including covenants which were placed on the real property with the intent of restricting the use, occupancy, ownership, or financing because of a person’s race, color, creed, national origin, or religious beliefs, is discharged and released from the land described herein. State of Minnesota, County of Hennepin The Economic Development Authority of the City of Crystal, a Minnesota public body corporate and politic, having an ownership or other interest in all or part of the real property described herein, solemnly swears that the contents of this form are true to the best of its knowledge, except as to those matters stated on information and belief, and that as to those matters it believes them to be true. Name and Address of Owner: The Economic Development Authority of the City of Crystal 4141 Douglas Drive North Crystal, MN 55422 The real property owned by Owner is located in Hennepin County, Minnesota, and is legally described as follows: Lot 6, Block 1, PERLICK ADDITION, according to the plat thereof on file or of record in the Office of the Registrar of Titles for Hennepin County, Minnesota, subject to easements of record. Torrens Certificate No. 1311502 Owner, the Economic Development Authority of the City of Crystal, swears and affirms that the information provided in this form is true and correct based on the information available and based on reasonable information and belief. ATTACHMENT G DOCSOPEN\CR205\30\707012.v8-8/10/22 Page 2 of 2 Minnesota Uniform Conveyancing Blanks Form 40.10.1 (1) A restrictive covenant which had the intent to restrict the use, occupancy, ownership, or financing of this property based on a protected class, including race, color, creed, national origin, or religion, existed at one time related to the property described in this form; (2) the restrictive covenant is contained in an instrument dated June 11, 1927 and recorded as Document No. 71230 (or in Book ________ of _________, Page ________) on June 23, 1927, in the Office of the County Registrar of Hennepin County, Minnesota, which is attached herein as Exhibit A; (3) restrictive covenants relating to or affecting protected classes are unenforceable and void pursuant to Minnesota Statutes, sections 507.18 and 363A.09, the United States Constitution, and the Minnesota Constitution; (4) Minnesota Statutes, section 507.18, provides for the discharge of a restrictive covenant of the nature described herein through the use of this statutory form to permanently discharge such covenants from the land described herein and release the current and future landowner(s) from any such restrictive covenant related to or affecting protected classes; (5) the instrument containing such restrictive covenants shall have full force in all other respects and shall be construed as if no such restrictive covenant was contained therein; and (6) the filing of this form does not alter or change the duration or expiration of covenants, conditions, or restrictions under Minnesota Statutes, section 500.20. The affiant knows the matters herein stated are true and makes this affidavit for the purpose of documenting the discharge of the illegal and unenforceable restrictive covenants affecting protected classes. _________________________________________________ Affiant (Owner’s signature) _________________________________________________ Affiant (Owner’s signature) Signed and sworn to before me on _______________, 2022, by _________________________________, and ___________________________________ , the ____________________________________ and ____________________________, respectively, of the Economic Development Authority of the City of Crystal, a Minnesota public body corporate and politic. ____________________________________________________________ (signature of notarial officer) Title (and Rank): ___________________________________ My commission expires: _____________________________ Notarial Seal THIS INSTRUMENT WAS DRAFTED BY: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 (612) 337-9300 DOCSOPEN\CR205\30\707012.v8-8/10/22 EXHIBIT A DOCSOPEN\CR205\30\707012.v8-8/10/22 DOCSOPEN\CR205\30\707011.v8-8/10/22 (Top 3 inches reserved for recording data) _____________________________________________________________________________________________ DISCHARGE OF RESTRICTIVE COVENANT AFFECTING Minnesota Uniform Conveyancing Blanks PROTECTED CLASSES Form 40.10.1 (2019) Minn. Stat. 507.18 _____________________________________________________________________________________________ Pursuant to Minnesota Statutes, Section 507.18, any restrictive covenant affecting a protected class, including covenants which were placed on the real property with the intent of restricting the use, occupancy, ownership, or financing because of a person’s race, color, creed, national origin, or religious beliefs, is discharged and released from the land described herein. State of Minnesota, County of Hennepin The Economic Development Authority in and for the City of Crystal, a Minnesota public body corporate and politic, having an ownership or other interest in all or part of the real property described herein, solemnly swears that the contents of this form are true to the best of its knowledge, except as to those matters stated on information and belief, and that as to those matters it believes them to be true. Name and Address of Owner: The Economic Development Authority in and for the City of Crystal 4141 Douglas Drive North Crystal, MN 55422 The real property owned by Owner is located in Hennepin County, Minnesota, and is legally described as follows: Lot 3, Block 1, ANDERSONS GARDENDALE ACRES, according to the plat thereof on file or of record in the Office of the Registrar of Titles for Hennepin County, Minnesota, subject to easements of record. Torrens Certificate No. 1309814 Owner, the Economic Development Authority in and for the City of Crystal, swears and affirms that the information provided in this form is true and correct based on the information available and based on reasonable information and belief. ATTACHMENT H DOCSOPEN\CR205\30\707011.v8-8/10/22 Page 2 of 2 Minnesota Uniform Conveyancing Blanks Form 40.10.1 (1)A restrictive covenant which had the intent to restrict the use, occupancy, ownership, or financing of this property based on a protected class, including race, color, creed, national origin, or religion, existed at one time related to the property described in this form; (2)the restrictive covenant is contained in an instrument dated April 18, 1928 and recorded as Document No. 77369 (or in Book ________ of _________, Page ________) on April 24, 1928, in the Office of the County _________Registrar of Hennepin County, Minnesota, which is attached herein as Exhibit A; (3)restrictive covenants relating to or affecting protected classes are unenforceable and void pursuant to Minnesota Statutes, sections 507.18 and 363A.09, the United States Constitution, and the Minnesota Constitution; (4)Minnesota Statutes, section 507.18, provides for the discharge of a restrictive covenant of the nature described herein through the use of this statutory form to permanently discharge such covenants from the land described herein and release the current and future landowner(s) from any such restrictive covenant related to or affecting protected classes; (5)the instrument containing such restrictive covenants shall have full force in all other respects and shall be construed as if no such restrictive covenant was contained therein; and (6)the filing of this form does not alter or change the duration or expiration of covenants, conditions, or restrictions under Minnesota Statutes, section 500.20. The affiant knows the matters herein stated are true and makes this affidavit for the purpose of documenting the discharge of the illegal and unenforceable restrictive covenants affecting protected classes. _________________________________________________ Affiant (Owner’s signature) _________________________________________________ Affiant (Owner’s signature) Signed and sworn to before me on _______________, 2022, by _______________________________, and __________________________________, the ___________________________, and ______________________, respectively, of the Economic Development Authority in and for the City of Crystal, a Minnesota public body corporate and politic. ____________________________________________________________ (signature of notarial officer) Title (and Rank): ___________________________________ Notarial Seal My commission expires: _____________________________ THIS INSTRUMENT WAS DRAFTED BY: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 (612)337-9300 DOCSOPEN\CR205\30\707011.v8-8/10/22 EXHIBIT A DOCSOPEN\CR205\30\707011.v8-8/10/22