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HomeMy WebLinkAbout2022 06-06 CCM JT CC AND FC MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA JOINT WORK SESSION JLTNE 6, 2022 CITY HALL—COLJNCIL CHAMBERS 1. CALL TO ORDEll2 The Brooklyn Center City Council/Financial Commission Joint Work Session was called to order by Mayor Elliott at 6:40 p.m. 2. ROLL CALL Mayor Mike Elliott and Councilmembers Kris Lawrence-Anderson, Dan Ryan, and April Graves (arrived at 7:08 p.m.)were present. Councilmember Butler was absent and excused. Also present were Financial Commission Chair Taneshia Kragness, Emmanuel Kpaleh, and Dean Van Der Werf: Financial Commissioners David Dwapu and Taofeek Ishola were absent. Also present were City Manager Reggie Edwards, Finance Director Andy Splinter, Interim Police Chief Tony Gruenig, Fire Chief Todd Berg, Recreation Director Cordell Wiseman, Office of Community Prevention, Health, and Safety Interim Manager LaToya Turk, Liquor Operation Manager Tom Agnes, and City Clerk/Interim Assistant City Manager Barb Suciu. 3. PRESENTATION OF AUDIT REPORT AND MANAGEMENT LETTER 3a. AUDIT REPORT AND MANAGEMENT LETTER City Manager Reggie Edwards introduced the topic and invited auditors Jim Eichten and Jackie Huegel to continue the presentation. Ms. Huegel stated their role is to provide an opinion on financial statements. Financial statements are fairly presented following accounting principles generally accepted in the United States of America. They also test internal controls and compliance. They comply with the Minnesota Legal Compliance Audit, and there is a separate single audit of Federal dollars due to the amount of �i Federal money the City used. A majority of Federal funds were used on the Brooklyn Bridge 'i project. � Ms.Huegel explained they have an unmodified financial report to present. There were no findings for internal controls over financial reporting, legal compliance audit findings, and single audit of Federal awards. She showed a slide with a graph depicting the increasing taxable market value over the last ten years. Overall it was a clean audit. 6/6/2022 Page 1 Ms. Huegel showed a slide with a table depicting the tax rates for Brooklyn Center over the past three years. She showed a slide summarizing governmental funds revenue per capita and governmental funds expenditure per capita. Ms. Huegel showed a chart with the governmental fund financial position including fund balance, cash, and expenditures over the past five years. She then showed a slide with the general fund revenue by source, broken down into the sources of taxes, intergovernmental, and others for the past five years. She also showed the general fund expenditures by function broken down into general government,public safety, public works, parks and recreation, and others for the last five years. Ms. Huegel showed a slide of the water fund over the last five years, which increased due to an increased water rate. As for the sanitary sewer fund, the operating revenues saw a slight increase due to a rate increase in conjunction with a decrease in use. The liquor fund had a slight increase in sales and operational expenses. There was an overall loss of about $330,000, which does not include the non-operating revenue dollars. Lastly, there was a decrease in the Earle Brown Heritage Center Fund's operating expenses and revenue due to COVID-19. It did receive about $300,000 in relief which is not reflected in the graph. There was an overall deficit of over $1.2 million. Ms.Huegel stated overall,there was a clean opinion of the City's financial statements. No findings , were reported, and there will be a continued ongoing assessment of financial projections and results including general, other operational, and enterprise fund activities. I, RECESS AND RECONVENE Mayor Elliott recessed the meeting at 6:57 p.m. Mayor Elliott reconvened the meeting at 7:05 p.m. , 4. COUNCIL/COMMISSION QUESTIONS Councilmember Ryan noted the City gave a lot of money to nonprofits to help with the effects of the civil unrest. He asked what accounting was done to ensure the money was properly spent and who audited those reports as it was a substantial amount of money. Dr. Edwards stated there was no independent audit completed. The contracts for purchased services were handled as all contracts and services are stipulated in the contract. As indicated in the audit, there is some accountability with intergovernmental funds for the money to be used as purposed. If they are grant funds such as Pohlad, these funds need to be accounted for. Mayor Elliott asked what the $130 per capita increase was referring to. Ms. Huegel stated the increase was for capital outlay and construction, which was related to the Brooklyn Boulevard improvement project. Mayor Elliott asked what t�e fund balance was at the end of the year. Ms. Huegel stated the fund 6/6/2022 Page 2 balance was at 51 percent at the end of the year. Mayor Elliott asked how much the police budget was under. Ms. Huegel stated the police budget was $170,000 under. Mayor Elliott asked what the $470,000 increase for the Police Department was for. Ms. Huegel stated there was a $470,000 increase in expenditures from the current year in comparison to the previous year. Mayor Elliott asked if the increases were budgeted for or due to the increase from the uprising. Ms. Huegel stated the increase was in the Police Department and the Fire Department. Finance Director Splinter stated the increase in actual expenditure was related to the civil unrest and was not budgeted for. Mayor Elliott asked how the budget could be $170,000 under with a $470,000 increase in expenditures. Commissioner Kragness stated the numbers are referring to two different things. The expenses increased due to the civil unrest,but the budget was under because of open positions in the Departments. Ms. Huegel noted the $170,000 was for all public safety efforts, but a majority of it was in the Police Department. Mayor Elliott stated he would like to see the number parsed out more. Dr. Edwards stated the measures in response to civil unrest might not necessarily be coded under the Police Department. It was applied toward "other" expenditures. Mr. Splinter stated a lot of these were coded in unallocated expenses. Mayor Elliott asked if the$145,000 was due to increased operations at the water plant. Ms.Huegel , stated the $145,000 increase in water fund operations was due to personal services and personnel. Mayor Elliott asked if they hired more people to take care of the water plant. Mr. Jim Eichten , stated it could have been a variety of things such as increased benefits or raises. Mayor Elliott asked if the $550,000 increase was the operating income for the water fund. Ms. � Huegel confirtned the water fund had an operating fund of$550,000. Mayor Elliott asked how that number balances in comparison to expenditures. Ms. Huegel stated the $550,000 is profit. Mayor Elliott stated there was an increase in the water bill. He asked if the $550,000 operating fund was typical or unusual. Mr. Splinter stated the operation was up. Mr. Jim Eichten stated the increase could be due to several causes such as consumption or the weather. Councilmember Lawrence-Anderson asked how much the City spent in 2021 on private security in comparison to the public safety officers or where the information could be found. Dr. Edwards stated they didn't necessarily have private security,but they had organizations the City contracted with to provide services. Staff could find the specific information and provide it to the Council. He noted any contracted services were presented to the Council previously. Councilmember Lawrence-Anderson stated she would like to know the expected budget for those services for 2023. Dr. Edwards stated that 2023 is a different landscape, and they won't expect to spend money on additional services for the upcoming year, barring any civil unrest. 6/6/2022 Page 3 Mayor Elliott asked what happens to the unused Police Department funds for the unfilled positions. In 2021, it was probably allocated to the uprising, but they don't have those funds in 2022. Dr. Edwards stated any department with a lull in staff uses additional funds to balance out the overall budget. Mayor Elliott asked if they track the reduction in the department's use of budgeted funds. Mr. Splinter stated those numbers are tracked in much more detail than what was presented. The additional funds are coming from the t� levy. Mayor Elliott asked if they know where the funds will be used. Mr. SplinteY stated the additional funds are not budgeted for and depend on the circumstances. Councilmember Lawrence-Anderson stated if a department is budgeted for a certain amount,there may be a placeholder implemented to use the funds. At the end of the year, they can't be in the red and may place hold any unanticipated expenses. Mayor Elliott asked when they move funds to be used in other departments without a budget amendment and when do we do it with a budget amendment. Dr. Edwards stated it happens with some fluidity. He added staff may hold off on certain expenditures in response to unprecedented events with the hope of balancing the budget by the end of the year. Mayor Elliott asked when do we flow funds and is there a process for the flow of funds and if there is a budget amendment required for the flow of funds. Dr. Edwards stated the funds have a latitude flow as needed. Mayor Elliott stated if there is department that has unfilled positions, let's take the police department, what is the process for moving the funds to balance out other departments and is there a budget amendment required. Councilmember Graves stated she is hearing two questions from Mayor Elliott. First, he is asking what the process is to determine the use of leftover funds at the end of the year and if there is a way of tracking the allocation. Second, he is asking how the funds would be shifted to another deparhnent and if that would require a budget amendment. Mayor Elliott stated they would cover the topic more thoroughly at a future meeting. Dr. Edwards noted the Staff did a remarkable job to end the year with no issues, especially in the light of civil unrest and continued issues related to COVID-19. 5. STAFF OVERVIEW OF COMPREHENSIVE ANNUAL FINANCIAL REPORT Mr. Splinter stated there were negative operating budget results of$649,092. There was a net decrease in the fund balance of$1,045,729 as the City budgeted for the use of$396,637. The general fund unassigned fumd balance represents 51 percent of next year's budgeted expenditures. Relief funds were used to balance the budget. Any fund balance of about 52 percent for capital projects would be transferred based on policy. Mr. Splinter explained for general fund revenues, were under budget by $276,236. They had to forgo some police contracts. There was a reduction in building in 2021, which impacted licenses 6/6/2022 Page 4 and permits. There was a decrease in property taxes due to a reduction in excess Tax Increment Funding. Investment earnings came in under budget due to net fair value adjustment. Lodging taxes exceeded the budget because the industry came back faster than anticipated, and there was an excess in intergovernrrflenta.l money and grants due to American Rescue Plan Act (ARPA) dollars. Mr. Splinter stated general fund expenditures were over by about $700,000. There was an increased cost in non-departmental funding, largely due to civil unrest costs, and communications and engagement. Police protection was short of their budget. The convention bureau budget was over, as was the public works budget. Mr. Splinter noted municipal liquor had an operating loss of $329,877 which was offset by insurance proceeds in nonoperating revenues of $349,276, compared to an operating loss of $89,083 in 2020. Both stores were closed for some time following civil unrest. As for Earle Brown Heritage Center, there was an operating loss of$1,273,967 compared to an operating loss of$1,721,203 in 2020. A $300,000 DEED grant was received to support operations. There was continued reduced activity due to COVID-19 restrictions. Mr. Splinter stated the water fund received $1.9 million in bond proceeds to pay its portion of neighborhood improvement project costs. Sanitary sewer received $1.4 million in bond proceeds as a result of planned project costs. Storm drainage received$2.2 million in bond proceeds to pay its portion of Brooklyn Boulevard Phase Two costs. Mr. Splinter stated completed work on Interstate Area Improvements was $1.3 million, continued work on Brooklyn Boulevard improvements was $1.4 million, Grandview South Area Improvements was $8.2 million, mill and overlay projects - $780,000, the Ryan Lake Area cost $1.2 million, adding playground equipment was$287,919. Mr. Splinter added Central Garage added or replaced 17 pieces of equipment totaling$2,723,988, primarily public works, fire, and police vehicles. The City retired $7,192,000 of principal on previously issued bonds and issued$8,010,000 in new debt for infrastructure projects. Mr. Splinter noted there was a net investment loss of$150,980, compared to an investment gain of$1,452,728 in 2020. Net investment loss includes investment income of$544,056, unrealized loss on investments of$695,035 unrealized paper loss due to increasing interest rates. Investments are anticipated to be held to maturity. The City/EDA owned$18.0 million in assets held for resale at year-end. 6. COUNCIL/COMMISSION QUESTIONS Mayor Elliott asked what the current trend line is for 2022, particularly in terms of losses. Mr. Splinter stated the licenses for the Opportunity Site are projected to be about$450,000,which is a large portion of projections for 2022. They reduced a lot of contract items for 2022 as they saw they wouldn't be able to do security contracts, so that should be more in line with estimates. The excess TIF receipt was eliminated and will allow for a more accurate estimated property tax revenue. 6/6/2022 Page 5 Mayor Elliott asked how much more they budgeted for licenses and permits. Mr. Splinter stated he does not know off the top of his head. Commissioner Van Der Werf asked if the expenses over budget go directly to the general fund. Mr. Splinter confirmed he was correct. He stated the CARES funding offset some fund balance in 2020. They are still in line with previous fund balances. They used some of the money to spend and decrease the levy. Councilmember Ryan stated both the CARES and ARPA have restrictions on the use of the funds. However, at least one of the funds was eligible to use for public safety. They are general fund money and go into the general fund pot and take the heat off of them for the hit to licenses and whatnot. Councilmember Graves asked what the main ta.keaways were for the past couple of years in terms of budget. Mr. Splinter stated the goal of the CARES Act was to get money to the cities as quickly as possible to be spent as quickly as possible. Therefore, there were a lot of leeways. The ARPA dollars are much more specific for rules with more time to decide how to spend it. The plan is due in 2024 for implementation in 2026. The CARES was more of a quick injection. Councilmember Graves asked if there is anything the City should be doing differently moving forward. Mr. Splinter stated the City has taken a good approach by being thoughtful with the ARPA dollars. The staff has been working closely with their financial advisors. Councilmember Graves stated they have an emergency response plan for operational issues. She asked if it would be helpful to have a financial emergency response plan. Mr. Splinter stated Brooklyn Center has healthy reserves in various funds, and the City would be good in the short term. Of course, the money is not liquid as much is being held in investments. They would have some losses if they had to sell quickly. It is important to consider such an event, similar to what St. Louis Park is experiencing with water lines breaking. Councilmember Ryan noted his appreciation of Councilmember Graves' comments and concerns. As they go into the budget process, they will need to consider the commitments they have made, such as those related to the receipt of external funding. They need plans in place to replace grant funding down the line. Councilmember Ryan asked if the City would lose money due to interest rates on bond deals but would gain it back in terms of lower borrowing costs. The interest rates movement tends to be a wash for the City. Mr. Splinter stated the interest rates look good for the City currently, but they will be reassessed in the budget process. Councilmember Lawrence-Anderson agreed sustainability is a key consideration. She asked if the fund balance is adequate, what number the Finance Director would like to see, and what are scenarios where the City would have to tap into the reserve. Mr. Splinter stated the reserve fund is plenty accurate. The State recommends a balance between 6/6/2022 Page 6 38 and 50 percent. The goal is to shoot for 50 percent because the City wouldn't receive an addition to the funds until June. The general fund has heavily been tax levy funded. Now that they have brought in more grants and funding sources, they need to consider if the reserve fund should be 52 percent of the following year's levy or the total expenditures. Dr. Edwards noted there is a tipping point where the State views the reserve fund as a negative because they are taxing people on what they might spend rather than what they would spend. They don't want to sit on it. Many cities have a large fund balance to save for fund expenditures down the road. Mayor Elliott stated there is a community that saves the money upfront so they aren't paying interest on the projects. Councilmember Ryan stated Crystal tries to operate on a cash basis,but it has created some issues for them because they don't have cash resources. It is not very smart. They keep going to the Legislature to try to put levies on the ballot but Brooklyn Center's Charter wouldn't allow for that. Mayor Elliott stated the interest is sometimes double what is paid toward the investment. Councilmember Ryan sta.ted the interest allows you to spend money elsewhere because less money is tied up in the investment. Dr. Edwards sta.ted they need to fix things when needed rather than saving up to fully pay for a fix. It may save money on interest to do so, but it is not always safe or feasible. Mayor Elliott added he has concerns about bringing in grant funds and being able to sustain the programming after the grant ends, especially when it comes to public safety. Launching some initiatives sooner than later would also allow the City to save more money in the long run. Councilmember Ryan noted a significant number of mature trees were torn down during the tornado in 2004. The City ground up the fallen trees, and they were able to afford it due to a contingency. They were able to do that because they spent and borrowed and had money set aside for such an emergency. 7. PRESENTATION ON LIQUOR STORE NO. 2 PROJECT Mr. Splinter stated Municipal Liquor allows the City to limit the number of liquor stores within the City and dictate their location. The profits from the Liquor store provide property tax relief through reduced capital project bonding. Mr. Splinter stated the design phase will take approximately four months. It must be underway by September 1, 2022, to capitalize on the 2023 construction season. The bid would be awarded in January or February of 2023, and the project should be completed by January or February 2024. The current lease expires on December 31,2023. 6/6/2022 Page 7 Tom Agnes,Liquor Operation Manager,stated in 2018, Shenehon conducted a consulting analysis. They identified three trade sectors for our liquor stores: the southern sector contains Store Number 1 with per capita liquor spending of$400-$500,the northwest sector contains Store Number 2 with per capita liquor spending of$200-$300, and northeast sector future store with per capita spending $750-$1000. Mr. Agnes explained the main concern for the new store was visibility as the current location is a setback from Brooklyn Boulevard and somewhat hidden due to the location of Culvers, Speedway, and surrounding businesses. There were also security concerns due to lighting issues. Mr. Agnes explained they reviewed sites on Brooklyn Boulevard owned by the Economic Development Authority(EDA)for any opporiunities to utilize existing City assets. The site at 70�' Avenue North and Brooklyn Boulevard is ideal for visibility and access. To maximize the EDA investment,they could leverage liquor store construction to meet other EDA goals of creating more commercial space for local businesses and wealth-building. LaToya Turk, Office of Community Prevention, Health, noted St. Alphonsus Catholic school, church, and community playground are approximately 588 feet from Liquor Store Number 2. A parking lot and a residential street separate the building structures. About two-thirds of residents in the immediate area of Liquor Store Number Two are non-white community members, per the 2010 Census tract. Ms. Turk pointed out that within the past year 118 incidents that required police assistance occurred in the immediate area of Liquor Store Number 2. There were 24 police responses to Liquor Store #2 in comparison to surrounding residences and establishments. Prior installed standard lighting requirements most likely do not meet current community standard recommendations proposed by Crime Prevention Through Environmental Design, Lighting for Safety (CPTED). Also, outdoor garage removal and poor sewage drainage pose a health risk for Staff and the community. Community Development Director Meg Beekman stated the three parcels up for consideration will become mixed-use. The goal of the 2040 Comprehensive Plan is to create neighborhood nodes. The Zoning Code allows for mixed-use, but it doesn't require it. The site is 1.6 acres and would be a small housing site. There has been interest from the neighboring church in the past. Ms. Beekman stated there are no other EDA-owned parcels in the market share area. There are also not any commercial properties for sale in the area. The property was assembled for several reasons. The City has had a long history of obtaining single-family homes on Brooklyn Boulevard. Also, there is a goal for high-intensity land uses which requires larger sections of land. Ms. Beekman added a recent market study conducted for Brooklyn Boulevard study found that office condominiums would be a desired and feasible product type along the corridor. The EDA has a strategic priority around Business Economic Stability which includes providing stable bricks and mortar opporlunities for local businesses and wealth-building. The site offers an opporiunity to develop six to eight office condo units that can be sold by the EDA with a scoring system that favors local entrepreneurs. Due diligence is underway to determine the financial feasibility of the 6/6/2022 Page 8 office condo concept. The goal of the initiative would be for the EDA to recoup any development expenses through the sale of the units. Mr. Splinter concluded City Staff is seeking approval to proceed with seeking proposals for architectural and engineering services related to the construction of new Liquor Store Number 2 and additional office condominium space at the corner of Brooklyn Boulevard and 70t" Avenue North. Mayor Elliott asked what the church thinks about the project. Ms. Turk confirmed she spoke to church administrators. They were concerned about the liquor store being expanded but not about the addition of the condos. Ms. Beekman added she has been in contact with church administrators regarding easements. The church is open to selling the City the land they would need to access the site. Mayor Elliott shared he received a call on behalf of the church with concerns about the proposal. Councilmember Ryan asked if the easement refers to the parcel on the east side. Ms. Beekman stated there is an existing easement from a single-family home that is available to the EDA for drainage and utility. The ea.sement is old and would need to be updated for proper access. The project wouldn't be able to go forward without the church's support because of the need for the easement. Councilmember Graves noted the report from 2018. The northeast quadrant has the opportunity to make more money. She asked if there are any properties available in that quadrant. Ms. Beekman stated the EDA owns a parcel in the northeast quadrant near Top Golf and Super America. It is valued at about$650,000 and is a similar size to the area in question. Ms. Beekman stated it is a viable option in terms of land use. However, there has been hesitation because it is unclear what will happen on 66�'and Hwy 252. Therefore, it may be unwise to invest in that area until the roadway changes are clear. Councilmember Graves stated she likes the northeast area better,but the consideration of the future road changes is understandable. Councilmember Graves stated a reason for building a new store is because it would be more affordable in the long run than leasing. She asked what the cost or benefit would be for having no liquor store for one year. Mr. Agnes stated Liquor Store Number 2 primarily competes with Brooklyn Park, which has several options. Most of the business would be lost to Brooklyn Park rather than be rerouted to Liquor Store Number 1. Closing it down hasn't been considered yet because of the EDA-owned land opportunity. Councilmember Ryan stated they are considering putting off a decent location while hoping for a perfect one. It would be the wisest to continue gaining revenue from a new store and create a new business location. Brooklyn Boulevard would be a very successful location. 6/6/2022 Page 9 Mayor Elliott noted there is a large difference in potential profit between the sectors. He asked what the projected income would be for the next five years if they were to close the store for one year. The long-term benefit of building in the northeast quadrant would likely far outweigh the short-term benefit of building at the proposed site. Ms. Beek.man stated the market study didn't suggest moving the liquor store. Instead,it suggested opening a third store in the northeast quadrant. She asked if Mayor Elliott is suggesting they abandon Liquor Store Number 2 entirely and seek out a potential liquor store in the northeast quadrant. Mayor Elliott stated there is a lot of potential revenue in the northeast quadrant, and they should focus on revenue. If the church isn't on board, they wouldn't be able to move forward with the site. He suggested they work with the church to gauge their willingness before making a decision. Ms. Beekman agreed that would be wise. However,there are pursuit costs to continue going down the road. For example, starting the design process would require monetary commitment as would an appraisal. She asked if Council supports continued efforts towards the proposed site. Commissioner Kragness asked if the church only had concerns with the liquor store being expanded. Ms. Turk explained the church didn't originally understand the larger build included the condos, so they thought the liquor store was getting much larger. Mr. Agnes pointed out the consultants recommended right-sizing the store. Liquor Store Number 1 is the primary store while the additional store is meant to be smaller. The current space is too large for its purpose. Councilmember Lawrence-Anderson stated she has also had conversations regarding the proximity to the church. There is already a liquor store next to the church, so they are not adding a liquor store out of the blue. She asked what the difference in distance to the church is between the two sites. Ms. Beekman stated the proposed location is about 200 feet further than the current Liquor Store. Councilmember Lawrence-Anderson stated she would like to utilize EDA-owned land and add lighting, cameras, and fencing. She asked what the proposed site is next to. Ms. Beekman noted the adjacent land was called"excess land"by the church. Councilmember Lawrence-Anderson asked if they could have some kind of a boundary line such as a fence at the edge of the property. Fencing, camera, lighting, and security are very important. She added she isn't concemed about the proximity to the church because it is already near the church. Councilmember Lawrence-Anderson pointed out that the EDA owns land near 66�`and Brooklyn Boulevard across from the Fire Station. Ms. Beekman stated the EDA sold the site to the City to be used for stormwater for the Brooklyn Boulevard project. It will likely be a pocket park. The EDA owns a piece on the south side, but it is too small for a liquor store. 6/6/2022 Page 10 Mayor Elliott asks what kind of investments would be made if the Council were to direct Staff to move forward with the project. Ms. Beekman stated the next step would be hiring an architecture firm to design something. The design package would cost $100,000 to $150,000 which would later be used to be put out for bid. Also, Sta.ff would work on land use approvals that would be brought to the Planning Commission and the Council. Additionally, an engineer would need to deal with stormwater. All in all, it would cost$130,000 to $200,000. Mayor Elliott stated the City would be wasting money if they moved forward without the support of the church. Ms. Beekman stated they would confirm everything with the church administration before spending more money on the project. As it stands, she has not heard anything but support for the project. Mayor Elliott stated it would make the most sense to get assurances from the church before voting to move forward. Dr. Edwards stated Staff wouldn't proceed without an agreement with the church. No money would be spent before that is complete. Mayor Elliott stated Staff should have confirmed with the church before bringing the proposal to the Council. He asked if an agreement with the church could be made in the next week. From there,they could consider approving the liquor store proj ect. Councilmember Graves agreed the church should be on board before spending money,which Staff has confirmed. She noted she doesn't know who has been opposing the project, and there may be some disconnect within the actual church. Councilmember Graves asked if the building would be two stories. Ms. Beekman stated it is currently one story, and they haven't considered two stories. Councilmember Lawrence-Anderson stated Staff can't go to the church to make sure they are on board without showing the City is on board. Someone has to take the initiative and take the first step. Staff needs to know if there is enough agreement from the Council before getting a final agreement from the church. Commissioner Kragness stated the Mayor is saying Staff should get all of the church decision- makers together in a room and get everyone on the same page. Right now, different people are hearing different things, so it is difficult to have a consensus. Councilmember Ryan stated the church is in the position to decide their approval. The Council needs to give the go-ahead and show they are committed to the project. The Liquor Store has been in the church's backyard for quite some time. The new building wouldn't be very different than the current one. He added he would be surprised if the church declined the easement. Also, the Council needs to let Staff do their job instead of receiving input from various people. Councilmember Graves pointed out that some people representing the church may not be aware of the potential project as that is not their purview. Mayor Elliott stated when people call, he talks to them. Also,just because the Liquor Store is currently close to the church, it doesn't mean it needs to stay close to the church. There is an opportunity for another decision to be made. If the Council is going to approve the project, it 6/6/2022 Page 11 presents an opportunity for a conversation with the church. It would be fiscally responsible to agree with the church before taking any further steps. Councilmember Lawrence-Anderson sta.ted Sta.ff would get an agreement from the church before spending any money. Staff needs to know if the Council supports the location and if the chttrch is on board. Mayor Elliott asked if they are authorizing Staff to spend money with the vote. Councilmember Lawrence-Anderson stated Staff needs the approval to move forward before they can go to the church for an official agreement. Mayor Elliott asked if the spending would be held off until the church agrees to the easement. Dr. Edwards stated Staff needs consensus from the Council to move forward with speaking to the church for a final agreement. If they agree to grant an easement, then they would take the next steps to move the project forward, including spending money. It was the consensus of the Council to proceed with confirming an easement agreement with the church and then seeking proposals for architectural and engineering services related to the construction of new Liquor Store Number 2 and additional office condominium space at the corner of Brooklyn Boulevard and 70th Ave North. 8. ADJOURN There was a motion by Mayor Elliott and seconded by Councilmember Ryan to adjourn the meeting. Motion passed unanimously. The Brooklyn Center City Council/Financial Commission adjourned at 8:56 p.m. STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned,being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. Attached hereto is a full, true, and complete transcript of the rninutes of the City Council/Financial Commission Joint Work Session of the City of Brooklyn Center held on June 6, 2022. 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 September 26, 2022, Regular Session. 6/6/2022 Page 12 < �� I City Clerk Mayor 6/6/2022 Page 13