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HomeMy WebLinkAbout2021 11-22 CCM STUDY SESSION MINUTES OF TH�; PROCEEDINGS OF THE CI'1'Y COUNCIL � OF THE CITY OF �3ROOKLYN CENTER IN THE COUN1'Y OF HENNEPIN AND THE STATE OF MINNF,SOTA STUDY SESSION NOVEM�ER 22, 2021 VIA 'LOOM CALL TO ORDER The �3rooklyn Center City Council met in Study Session called to order by Mayor Mike Elliott at 6:02 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were City Manager Reggie Edwards, Community Development Director Meg Beekman, and City Clerk Barb Suciu. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Mayor Elliott requested a change in the agenda for the Work Session. He suggested they move item 2. I�ollow Up to Budget Yresentation to be before item 1. Concept Review Follow-up Discussion Regarding the Former Sears Site. City Manager Reggie �dwards stated there are presenters for item 1. Concept Review Follow-up Discussion Regarding the Former Sears Site that is prepared to present at the beginning of the Economic Development Authority Work Session. Mayor Elliott stated the City Attorney needs to speak on item 2. Follow Up to Budget Presentation bcfore he has to leave for another meeting. He asked if Council would be amenable to pushing back the public comment time to allow for both presentations sooner. Councilmember Ryan stated they should move forward with the Study Session agenda as written because of what Dr. Edwards mentioned regarding the outside presenters. Councilmember Lawrence-Anderson stated she agrees with Councilmembcr IZyan and Dr. Edwards. Councilmember Butler stated they should start the meeting and see how quickly they could get through it as written. Ms. Suciu noted City Attorney Troy Gilchrist was not yet at the meeting. Mayor Llliott asked if Jason Hill was present. Mr. Hill confirmed he was logged onto the meeting platform. MISCELLANEOUS 11/22/21 -1- Nonc. llISCUSSION OF WORK SI:SSION AGENllA ITEMS AS T1ME YERMITS CONCFPT REVIEW FOLLOW-UP llISCUSSION REGARUING THI; FORMER SEARS SITE I)r. I?dwards stated they are bringing this topic up to receive further instruction Irom the Council as to the next steps. He introduced Community Development Director Meg �3eekman to continue thc presentation. Coinmunity Development Director Meg Beekman stated the presentation is meant to be a concept review and nothing said in the presentation or discussion is binding. Instead, the presentation provides an opportunity for the developer to share ideas about the development and f or the Council to ask questions and provide input. She noted there will not be a vote on the presentation and any of�Iicial applications and decisions were yet to come. Ms. I3eekman explained the f'ormer Sears site has been vacant since 2018. The Brooklyn Center site, along with multiple other former Sears sites were purchased by "TransformCo, to redevelop the sites. TransformCo has been exploring redevelopment options on the site for the last year and a half. This process has included conducting their market studies and working with local brokers to identify feasible reuse for the site. "I,hey initiated a request for proposals process in late 2020 to idcntiiy a redevelopment partner. Through that process, Scannell I'roperties was selected, and they have now entered into an option agreement with TransformCo for the site. Ms. �3eekman stated Scannell Properties is a developer of primarily light industrial and commercial business centers. They have most recently completed projects in Brooklyn Park and Maple Grove. At a Council work session In May 2021, Scannell presented a concept plan for redevelopment to an office/warehouse use which would classify under the City's current light industrial zoning district and the 2040 Comprehensive Plan's futurc land use designation of�usiness Mixed Use. "1'he off-ice/warehouse product type is in high demand in the market and is not a product that is readily available in the Brooklyn Center market. Office/warehouse buildings typically provide a 24-28-1oot clear ceiling height, which offers the most flexibility for businesses. Ms. Beekman added Scannell began their due diligence of the site and completed an environmental assessment of the property, which identified significant amounts of asbestos in the existing buildings, which will need to be remediated before demolition can take place. 'I'he total estimated cost to remediate the asbestos in the former Sears building is nearly $1 million. This wark will be required before the demolition of�the existing structures. Ms. I3eckman noted, at their May work session, the Council provided feedback on the concept plan, and indicated that the proposed concept was not satisfactory. Councilmembers provided direction to the developer to go back and rework their concept. The Council's feedback on the plan fell into four main areas: to provide a greater mix of uses, primarily a desire to see more retail/entertainment uses on the site, and overall high finish level on any buildings, with four-sided 11/22/21 -2- architecture, and a focus on enhancing the Highway 100 frontage, a site layout, and design that ��I adds value to the adjacent Shingle Creek Crossing shopping center, and a community benefit through opportunities for space for local businesses or local hiring goals. Ms. Beekman stated Scannell and TransformCo have been exploring the regional market, seeking opportunities to provide a greater mix of retail and entertainment uses. They have been working with a local broker, and have not had any interest in the site for this type of use. They have also focused on enhancing the architectural design and finish level of the building, as well as the layout to better consider the adjacent shopping area. Additionally, they are exploring ways to provide greater community benefits from the site. Ms. Beekman stated TransformCo and their partner developer Scannell, have requested a work session to discuss the site, their revised concept plan, and how they intend to more closely align with the City's goals. The Staff has asked Julie Kimble, with KimbleCo, to also participate in the discussion on behalf of the City to ensure a collective understanding of the City's goals as well as the market realities and constraints on the site. TransformCo requested this discussion as they are at a decision point around whether to proceed with a project in Brooklyn Center or to begin to focus on other sites and are seeking direction on their development concept. Ms. Beekman introduced Dan Salzer, Senior Development Manager with Scannell Properties, to continue the presentation. Mr. Salzer introduced himself along with Ted Gonsior, Executive Vice President of JLL, and Joe David, Divisional Vice President and Head of Real Estate Transactions for TransformCo. He asked Mr. David to introduce himself. Mr. David thanked the Council for their time and summarized their presentation from May 202 L He noted they went back to the drawing board taking note of the Council's concerns. He added they were all available for questions at any time. Mr. David explained TransformCo is what is left of Sears and Kmart as their company purchased the remains of Sears and Kmart out of bankruptcy. They have been on a mission to redevelop Sears properties across the country. TransformCo was later joined by JLL on a national basis to market their assets, and Ted Gonsior oversees that effort by JLL. Mr. Gonsior noted Brooklyn Center's staff have been excellent to work with. Mr. Gonsior explained he is the head of the retail department in Minneapolis for JLL, which is the second- largest brokerage firm in the world. He has been in commercial real estate for 18 years, but he currently focuses purely on retailers. Mr. Gonsior explained they have been working on securing an anchor tenant, which would be a tenant of substantial size to spur on further development, and those efforts have been documented and shared with Ms. Beekman. The biggest hurdle he has faced relates to proximity. Brooklyn Center is a well-located cominunity near the river with access to the City and highways and a healthy residential density, but the City is unique in the sense that it is located within proximity to Northtown Mall, 610 Avenue, and Maple Grove to the north, and Minnetonka and St. I,ouis Park to the south. The retailers he has spoken with do not need additional coverage in Brooklyn Center. Mr. Gonsior added retailers used to focus on interstate access and school locations, but they have 11/22/21 -3- learned that the daytime population is also significant to their success. This change in the market has changed the conversations about land use potential for Sears and Kmart sites. Mr. Salzer showed a slide with a map depicting the existing land use, the retail market overview, a photo of the existing site aerial, and a concept site plan. He explained they have worked with engineers on screening the highway and creating a nice view for adjacent buildings. The latest site plan would allow for car parking on the outsides of the buildings with a shared truck space between the two buildings. Additionally, there was intentional landscaping placed to allow for a more hidden truck entrance. Mr. Salzer stated there is good visibility from the highway for tenants. He added they separated the truck space to the frontage road to creating a better view from the highway. Mr. Salzer stated they added several sidewalks throughout the concept site plan and possibilities for tenants to have patio space. Mr. Salzer then showed potential renderings of the buildings and a chart comparing other business parks and their uses. In terms of business park job creation comparisons, the property has the potential to attract at least 230 new, high-quality jobs with a likelihood of generating 300. With the changing of retail space due to the pandemic, there are more varying numbers of jobs per square foot. Objectives of the business park include the growth of local companies, attracting new employers, creating quality jobs for residents, increasing the tax base by over 400%, and an employment base to support local retailers. Councilmember Graves asked how long ago Northpark in Brooklyn Park was built. Mr. Salzer stated the park includes about 15 buildings. He stated the oldest buildings represented in the table were built in 2016 and a few of the buildings are still being finished. Councilmember Graves asked what the vacancy rate has been with Northpark. Mr. Salzer stated the vacancy rate is low, and the buildings have been filling up as fast as they can be built. 1'here is one building that is being finished that doesn't have tenants, so it was not included in the table, but all of the other buildings are full. Councilmember Graves asked if the comparison buildings have a similar configuration. Mr. Salzer stated the building layouts depend on the sites themselves, but four of the seven have set-ups that share a truck site and have comparable building sizes. Councilmember Graves asked what the site looks like when there are no tenants in terms of security gates in the truck court. Mr. Salzer stated no fences or gates are enclosing the truck courts, but one building that holds a data center has a fence around it due to the nature of the business. Councilmember Graves asked if one of the complementary objectives is for the potential new tenants and employees to patronize the local businesses. Mr. Salzer confirmed that is a complementary objective. Councilmember Graves asked if creating jobs and improving jobs were also complementary objectives. Mr. Salzer stated she was correct. Mr. David stated more activity on the site would help the existing retail, but the available plats on nearby sites would also be beneficial. Councilmember Graves asked how the building would be marketed, how likely it would be for the building to be filled, and for the time frame on the whole project. Mr. David stated once they have entitlements moving forward and an approved site plan, 11/22/21 -4- then they start marketing efforts. He stated they have no concerns at all about filling the buildings with tenants because it is a desirable location. Councilmernber Gi•aves asked Ms. Beelcinan how this site plan aligns with alternative redevelopmcnt strategies the Council had previously discussed. Ms. Beekman noted Julie Kimble of KimbleCo, who presented about redevelopment strategies, was present on the call, so she would defer the question to her. Ms. Kimble, Founder, and CEO of KimbleCo stated the market rcport she copied supported industrial and multi-family for redevelopment and did not support retail and office sites. She stated the site plan was aligned with inarket research and supporied the tax base. Ms. Kimble stated a lot of the issues and ideas they spoke about previously are addressed in the proposed site plan. She added she believes the space would be leased pretty quickly. Councilmember Ryan stated he believes Brooklyn Center's commercial arcas have suffered from a lack of invcstment. The potential of 230-300 jobs and supporting other retail is a great concept. He noted his support of the concept Currently, only market-rate housing or light industrial commercial developments have any significant interest by developers. Councilmember Lawrence-Anderson stated she concurs with Councilmember Ryan. She noted her appreciation of previous questions and the presentation. She believes this is a step in the right direction. Councilmembcr Butler asked how this project differs from a previous discussion regarding a company that manufactured medical equipment. Ms. Beekman stated the feedback Staff received from Council at the aforementioned meeting included concerns with adjacent site interaction, views from the highway, and community benefit opportunities. She explained the developers have gone back and improved the site plan and how it interacts with the context around it, so this is their best foot forward on what the market can do with this site. Additionally, Ms. �3eekman explained Ms. Kimble is helping the City through the process of a potential formal application. Mayor Elliott noted he had a question similar to Councilmember Butler. He noted he believed the Council wanted a retail space or global market to take up the space. He stated a lot of the City's light industrial is near Medtronic, and he has seen vacancies in that area. Considering it seems like such a vibrant space, he would like to do something besides a light industrial build. Mayor Elliott stated he would like a presentation about a global market space to use the area, similar to Minneapolis' Midtown Global Market. FOLLOW UP-TO BUDGET PRESENTATION Mr. Hill, Assistant City Attorney stated along with the adoption of the Daunte Wright and Kobe Dimlock-Heisler Community Safety and Violence Prevention Act, there was also a plan for the Implementation Committee,Community Response Department,Department of Community Safety and Violence Prevention, and the hiring of a director for the Department of Community Safety and Violence Prevention. "I'he new resolution intends to direct the City Manager through the budget process to allocate funds toward the implementation of the Daunte Wright and Kobe Dimlock- 11/22/21 -5- �-Ieisler Community Safety and Violence Prevention Act. The Resolution would direct the Council to reassess the allocations in the 2022 budget, specifically to allocate $1,220,000 from the general ftmd to the implementatiori of the Daunte Wright and Kobe llimlock-I-Ieisler Community Safety and Violencc I'revention Act. Councilmember Ryan stated they should move on to the regular mecting and continue the preseiltation at the appropriate time during the work session. Mayor Elliott stated the presentation was only a few minutes and Mr. Hill was already presenting, so they will ��inish the presentation before transitioning to the regular meeting. Mr. Ilill stated the allocation of the $1,220,000 would include $950,000 to the Department of Community Safety and Violence Prevention, $350,000 to community programming, $70,000 to the 'I'raftic I?nforcement� Department and pilot study, $150,000 to the Implementation Committee, and $150,000 Director of the Department of Community Safety and Violence Yrevention. That is a total of$1,870,000, but they have obtained $500,000 in grants, and the City Manager offered $l 50,000 f-rom a budget line item. The funds to be budgeted for Salety Act implementation under this Resolution shall, to the greatest extent possible, be transferred from funds allocated to current City staff vacancies, whilc ensuring the City maintains at least the current level of public services. Mr. I Iil1 explained the Resolution allows the City Manager is authorized and directed to revise the proposed 2022 budget to reflect the budget allocations contained within this Resolution and to take all other steps necessary to be able to present the revised budget at the public hearing scheduled for Decembcr 6, 2021, which may be continued to December 13, 2021, if needed. Mr. Hill added the Implementation Cominittee, in performing its work as directed in the Safety Act, shall consider the range of issues that affect public safety including, but not limited to, the conditions that drive, contribute, and lead to public safety issues; a framework for social and economic justice policies and plans; youth and community programming in health, technology, financial, and education; tutoring and mentoring options focused on a whole-person approach to provide hope and critical crime prevention and healthy community support; and a design for the City's public safety departments that identifies and integrates systems to address the whole needs of the City's residents in a comprehensive way. Mr. Hill explained Council could discuss the Resolution further at a special meeting. A resident asked why they could not address the issue now as people's lives are at stake. Mayor Elliott asked City Clerk Barb Suciu to continue muting people that are not recognized to speak. Ms. Suciu stated she was doing her best. Mayor Elliott encouraged residents to raise their hands or comment in the message box rather than unmuting themselves. Councilmember Ryan stated this will be discussed at the December 6, 2021, meeting, so he believes they should move on to the regular meeting. Councilmember Ryan asked Dr. Edwards if he would be presenting a follow-up to the budget meeting during the work session. Dr. Edwards confirmed. 11/22/21 -6- Dr. Edwards stated the Clerk is not autharized to pennit anyone to speak and is following the direction of the Council to continue to mute pcople. i��e explained the Council recognizes peoplc to speak based on the structure of the meeting. Discussion of this item continued and concluded the November 22, 2021, Work Session. AllJOURN STUllY SF,SSION TO I1�IFORMAL OPEN FORUM WITH CITY COUNCIL 1�earing no objections, Mayor Elliott adjourned the Study Session at 7:10 p.m. STATE OF MINNLSO"I'A) COUNTY OF HENNLPIN) ss. Certification of Minutes CITY OF BROOKLYN CENZ'ER) T'he undersigned,being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full,true,and complete transcript of the minutes of a Study Session of the City Council of�the City of Brooklyn Center held on November 22, 2021. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its December 13, 2021, Regular Session. _.-_ __- �__..._ _ � � , �1������ ,���'� Barbara Suciu, City Clerk Mike Elliott, Mayor 11/22/21 -7-