2023.09.05 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, SEPTEMBER 5, 2023
6:30 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Consider approval of minutes from the August 15, 2023 regular meeting
4. Consider a resolution adopting a proposed 2024 EDA budget and HRA tax levy
5. Consider approval of an amendment to the Purchase and Development Agreement for
4741 Welcome Ave. N.
6. Property status update *
7. Other business *
8. 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
August 15, 2023
1. Call to Order
President Kiser called the meeting of the Economic Development Authority of the City of
Crystal (EDA) to order at 8:09 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: Jim Adams, John
Budziszewski, David Cummings, Forest Eidbo, Traci Kamish, Therese Kiser and Taji
Onesirosan.
The following staff were present: Executive Director Adam Bell, Deputy Executive
Director John Sutter, City Planner Dan Olson, Police Chief Stephanie Revering and City
Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner Adams (Budziszewski) to approve the minutes from the June
20, 2023 regular meeting. Motion carried.
4. Consider approval of a Termination of Development Agreement for 4824 56th Avenue
North.
Staff presented information about the reason for the termination and requested board
approval.
Moved by Commissioner Budziszewski (Eidbo) to approve a Termination of
Development Agreement for 4824 56th Avenue North. Motion carried.
5. Consider authorizing a Request for Proposals for development of 4824 56th Avenue
North.
Staff presented information about the Request for Proposals and requested board
authorization.
Page 2 of 3
Moved by Commissioner Budziszewski (Eidbo) to authorize a Request for Proposals for
development of 4824 56th Avenue North. Motion carried.
6. Property Status Update
Staff updated the board on the following:
• 5240 Apts (Sand Companies 4-story, 58-unit apartment building) is under
construction at 5240 West Broadway
• 4-unit residential building is under construction at 4741 Welcome Ave. N.
• Wine Thief and Ale Jail building renovations/addition at 3600 Douglas Dr. N. is
under construction, with a fire sprinkler financing request anticipated for City Council
consideration on Sep. 5
• Hampton Companies 8-unit townhome development at 3401 Douglas Dr. N. will
begin construction soon.
• The scale model of the Blue Line Extension’s proposed interchange and LRT station
at Bass Lake Road is available for public viewing at City Hall during normal business
hours.
7. Other Business
There was no other business.
8. Adjournment
Moved by Commissioner Budziszewski (Eidbo) to adjourn the meeting. Motion carried.
The meeting adjourned at 8:32 p.m.
Page 3 of 3
These minutes of the August 15, 2023 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Therese Kiser, President
ATTEST:
______________________________
Forest Eidbo, Secretary
___________________________________________________________________________
FROM: John Sutter, Community Development Director
D ATE: August 30, 2023
TO: Adam R. Bell, Executive Director (for September 5 EDA meeting)
SUBJECT: Consider a resolution adopting a proposed 2024 HRA tax levy and EDA
budget
As part of the annual budgeting process, the EDA formally requests a Housing and
Redevelopment Authority tax levy which would comprise most of its funding. The 2023 levy
was $316,200. Staff is recommending a 2024 levy of $335,172 which is a 6% increase from
2023. The statutory maximum HRA levy is $528,438 which is 0.0185 percent of the estimated
market value of the property in the City.
Anticipated 2024 EDA activities:
•One or more redevelopment projects in the Town Center redevelopment area
•Expand branding and beautification efforts, including utility box wraps
•Continue façade improvement grants after Hennepin County funds are expended
•Sale of properties currently being held by the EDA (proceeds increase the fund balance)
•Home improvement grants for qualifying households located outside the redevelopment
project area (not eligible for TIF funds)
Adoption of the attached resolution is requested. Please note that, whatever 2024 levy amount
is set at the September 2023 meeting, it may be reduced but cannot be increased when the
final budget and tax levy are set in December 2023.
Attachments:
•Resolution adopting a proposed 2024 HRA tax levy
•EDA budget detail
•Crystal EDA 2024... and beyond (slide updated from April 18, 2023 meeting)
EDA STAFF REPORT
Proposed 2024 HRA Tax Levy and EDA Budget
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2023 - ___
ADOPTING A PROPOSED 2024 BUDGET AND PROPERTY TAX LEVY
AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL
WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes
redevelopment and housing activities in the City of Crystal, Minnesota (the “City”); and
WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the
enabling resolution of the EDA, the EDA exercises all of the powers of a housing and
redevelopment authority (“HRA”) as described in Minnesota Statues, Section 469.001 to
469.047 (the “Act”); and
WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and
collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is,
property in the City; and
WHEREAS, the maximum permitted HRA levy is $528,438 which is 0.0185 percent of the
estimated market value of the property in the City.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of
Crystal as follows:
1. The EDA hereby adopts a proposed 2024 budget for housing and redevelopment in the
amount of $401,513.
2. The EDA hereby adopts a proposed 2024 property tax levy of $335,172 for the purpose
of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of
Minnesota Statutes.
3. The Executive Director is authorized and directed to transmit a certified copy of this
Resolution to the City Council of the City of Crystal for its consent and approval as
provided by Section 469.033 of the Act and for certification to the Property Tax Manager
of Hennepin County.
Adopted this 5th day of September, 2023.
_______________________________
Therese Kiser, President
_______________________________
Adam R. Bell, Executive Director
Revenue 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed
Property Taxes - Adopted Levy 282,744$ 300,000$ 310,122$ 316,200$ 335,172$
Prior Years' Delinquent Taxes 1,191$ 1,471$ 1,605$ -$ -$
Special Assessments*20,107$ 20,003$ 32,839$ 32,834$ 32,834$
Interest Income 79,686$ (10,026)$ (39,171)$ 8,000$ 8,000$
Miscellaneous Revenue -$ 273$ 14,533$ -$ 26,800$
Total Revenue 383,728$ 311,720$ 319,927$ 357,034$ 402,806$
Expenditures 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed
Personnel Services 312,634$ 330,071$ 299,173$ 271,358$ 232,708$
Professional, Audit & Legal Services 17,163$ 8,160$ 31,306$ 26,000$ 32,000$
Contractual Services*5,136$ 77,980$ 3,484$ 5,000$ 15,000$
Internal Service Fund Charges -$ 4,568$ 5,186$ 5,215$ 7,354$
Home Improvement Grant Program 40,511$ 91,470$ 33,625$ 25,300$ 26,800$
Branding and Beautification 10,550$ 12,228$ 6,251$ 20,050$ 40,550$
Façade Improvement Grants -$ -$ 12,500$ -$ 40,000$
Miscellaneous Operating Expenses 3,127$ 2,437$ 5,849$ 5,000$ 7,100$
Total Expenditures 389,119$ 526,914$ 397,374$ 357,923$ 401,513$
Net Revenue Over (Under) Expenditures 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed
(5,392)$ (215,194)$ (77,447)$ (889)$ 1,293$
Fund Balance at Year End 2020 Actual 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed
Actual* / Forecast based on budget 2,438,443$ 2,310,250$ 2,232,803$ 2,231,914$ 2,233,207$
EDA Budget Detail
*Proceeds from property sales go into the fund balance but do not show up as revenue. This means the year-
to-year change in the fund balance may not match that year's net revenue over (under) expenditures.
*Special assessments are the method of repayment for EDA financing of installation of fire protection
systems. 2024 special assessment revenue is comprised of $20,000 from 6105 42nd Ave N and $12,834
from 5600 56th Ave N.
*2021 contractual services expenditures included $64,170 for installation of a fire protection system at 5600
56th Ave N.
Crystal EDA 2024… and beyond
Can continue with
previously planned 2%
increase to HRA levy
STS litter clean-ups
Senior Community
Services
Planter boxes
Senior Community
Services
Elevate Hennepin
business assistance
Business promotion &
outreach
Business networking
Embodied in adopted
2023 budget
Additional items funded
by shifting staff time plus
6% increase to HRA levy
Minor beautification
projects
Maintenance contract
for landscape beds
Continue façade grants
Utility box wraps,
decorative entrance
monument signs and
other beautification
projects (1-2 per year)
Embodied in proposed
2024 budget
Additional items that
would require increasing
HRA levy to statutory
max. ($528,438 in 2024)
Major beautification
projects (medians,
boulevards, utility
undergrounding)
42nd Avenue project
Douglas Dr/W Bdwy
intersection project
Strategic acquisitions
Will be included in 2025-
2026 budget discussions
in spring-summer 2024
AMEND PURCHASE AND DEVELOPMENT AGREEMENT – 4741 WELCOME AVENUE NORTH
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
TO: Adam R. Bell, Executive Director (for September 5 EDA Meeting)
DATE: August 31, 2023
RE: Consider approval of an amendment to the purchase and development
agreement for 4741 Welcome Avenue North
Gernco Construction, the builder who purchased 4741 Welcome Avenue North from the city in
2021 to construct a four-unit residential building, is requesting an amendment to the purchase
and development agreement.
Amend the completion date.
The sale of the lot closed on October 27, 2021 and the purchase and development agreement
requires Gernco to complete the building within two years of the closing.
The building at 4741 Welcome is under construction and could be completed by early 2024. The
builder has indicated that construction has been delayed by factors outside his control such as
his lender requiring that the building plans be amended so that the four units would be the same
size (the EDA approved an amendment to the purchase agreement on June 20, 2023 to reflect
the amended site and building plans).
For this reason, staff recommends an extension to June 30, 2024 with the following construction
milestones to occur:
➢ November 30, 2023. Complete the walls and roof of the building.
➢ March 31, 2024. Substantially complete the building.
➢ June 30, 2024. Final completion including all site improvements and landscaping.
EDA approval of the attached amendment to the purchase and development agreement for the
property is requested. Staff recommends approval.
Attachment:
A. Second amendment to Purchase and Development agreement for 4741 Welcome Ave N
EDA STAFF REPORT
4741 Welcome Ave. N.
Amend Purchase and Development
Agreement
AMEND PURCHASE AND DEVELOPMENT AGREEMENT – 4741 WELCOME AVENUE NORTH
2022 Aerial Photo:
AMEND PURCHASE AND DEVELOPMENT AGREEMENT – 4741 WELCOME AVENUE NORTH
Au gust 29, 2023 Construction Status Photos:
1
CR150\222\897483.v1
SECOND AMENDMENT TO PURCHASE AND DEVELOPMENT AGREEMENT
This Second Amendment to Purchase and Development Agreement (this “Second
Amendment”), has been made and entered into as of this ________ day of __________________,
2023, by the Economic Development Authority of the City of Crystal, a public body corporate and
politic under laws of Minnesota (the “Seller”) and Gernco Construction LLC, a Minnesota limited
company (the “Buyer”).
RECITALS
WHEREAS, the Seller and the Buyer are parties to that certain Purchase and Development
Agreement, dated June 15, 2021, recorded in the Office of the Hennepin County Registrar of Titles
on April 4, 2022 as Document No. 5937703 (the “Purchase Agreement”), whereby the Seller
agreed to sell the following described real property:
Lots 3 and 4 (except for the south 40 feet), Block 2, Twin Lake Addition, Hennepin County,
State of Minnesota
(the “Property”) to the Buyer; and
WHEREAS, the Seller and the Buyer are parties to that certain First Amendment to
Purchase and Development Agreement dated June 20, 2023, filed July 21, 2023, in the Office of
the Hennepin County Registrar of Titles as Document No. 6025863, whereby Buyer and Seller
agreed to new requirements by which the Minimum Improvements are to be substantially
constructed (the “First Amendment”); and
WHEREAS, the Seller has determined that there is good cause to modify the date of
completion as described in the Purchase Agreement, and the Seller and the Buyer wish to amend
the Purchase Agreement in order to extend the date for the completion of the development in
accordance with certain construction milestones.
NOW, THEREFORE, the parties agree as follows:
1.Paragraph 15.C. of the Purchase Agreement is hereby amended to read as follows:
The Buyer must complete certain construction milestones according to the timeline as follows:
Attachment A
2
CR150\222\897483.v1
The walls and the roof of the four-unit residential dwelling must be substantially complete by
November 30, 2023. The four-unit residential dwelling must be substantially complete by March
31, 2024. All other site improvements and landscaping must be complete no later than June 30,
2024. Construction of the four-unit residential building will be considered “substantially
complete” when the final certificate of occupancy has been issued by the City of Crystal building
official. Alternatively, if the Buyer submits an escrow payment for installation of the driveway or
landscaping, in an amount to be determined by the building official, construction will be
considered substantially complete when the temporary certificate of occupancy has been issued by
the building official.
2. All other terms and conditions of the Purchase Agreement and the First Amendment shall
remain unchanged.
(The remainder of this page is intentionally blank; signatures follow.)
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CR150\222\897483.v1
IN WITNESS WHEREOF, the parties have caused this Second Amendment to be signed
and executed on their behalf as of the day and year first written above.
SELLER:
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CRYSTAL
By: _______________________________
Therese Kiser
Its: President
By: _______________________________
Adam R. Bell
Its: Executive Director
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ______ day of _________________ 2023,
by Therese Kiser, the President of the Economic Development Authority of the City of Crystal, a
public body corporate and politic under the laws of Minnesota.
________________________________
NOTARY STAMP SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ______ day of _________________ 2023,
by Adam R. Bell, the Executive Director of the Economic Development Authority of the City of
Crystal, a public body corporate and politic under the laws of Minnesota.
________________________________
NOTARY STAMP SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT