HomeMy WebLinkAbout06-26-23 CCPCouncil Executive
S ession
City Hall Council Chambers
J une 26, 2023
AGE NDA
[The C ity Counc il may elect to meeting in closed Exec utive S ession under the attorney-c lient privildge
to discuss pending litigation - Minn. Stat. Section 13D.05, subd. 3(b)]
1.Call to Order - 5:00 p.m.
2.Roll Call
3.Closed Session Council - Attorney discussion
- Closed session—pursuant to Minn. Stat. § 13D.05, subd. 3(b) to discuss the pending
litigation, MD H R Ref. # 70468, with attorney representing the City of Brooklyn Center.
4.Reconvene E xecutive Session M eeting
- T his is followed by an open session with consideration of settlement with the
Minnesota Department of Human Rights, Ref. # 70468.
5.Adjourn
C ouncil Execu ve Session
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:D r. Reggie Edwards, City Manager
S U B J E C T:C los ed S es s ion Council - A+orney discussion
B ackground:
C ouncil Execu ve Session
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:
S U B J E C T:Reconvene Execu,ve S es s ion Mee,ng
B ackground:
Council Study Session
City Hall Council Chambers
J une 26, 2023 AGE NDA
1.City Council Discussion of Agenda Items and Questions - 6 p.m.
2.M iscellaneous
3.Discussion of Work S ession Agenda Item as T ime P ermits
4.Adjourn
C IT Y C O UNC IL
M E E T I NG
City Hall Council Chambers
J une 26, 2023
AGE NDA
1.Informal Open Forum with City Council - 6:45 p.m.
This is an opportunity for the public to address the City Council on items that are not on the agenda. It
is limited to 15 minutes. It may no t be used to make personal attacks, air personality grievances, make
political endorsements, or for political campaign purposes. Council Members will not enter into a
dialogue with the presenter. Questions fro m the Council will be for clarificatio n purposes only. It will
not be used as a time fo r proble m-solving or reacting to the comments made but for hearing the
presenter for informational purposes only.
The first call will be for those that have notified the Clerk that they would like to speak during the
open forum and then ask if any one connec ted to this meeting would like to speak. W hen called
upon, please indicate your name and then proceed. Please be sure to state your name before
speaking.
2.Invocation - Graves - 7 p.m.
3.Call to Order Regular Business M eeting
Attendees please turn o ff cell phones and pages during the meeting. A copy of the full me e ting packet
is available in the binder at the entrance to the Council Chambers.
4.Roll Call
5.P ledge of Allegiance
6.Approval of Agenda and Consent Agenda
These items are considered to be routine by the C ity Council and will be enacted by one
motion. There isn't a separate discussion for these items unless a Counc ilmember so requests,
then it is moved to the end of the Council Consideration I tems.
a.Approval of Minutes
- motion to approve the following meetings:
June 12 Study Session
June 12 Regular Session
b.Approval of L icenses
- motion to approve the licenses as presented.
c.Resolution A pproving S ettlement A greement for B rooklyn Boulevard Corridor
Project Phase 2 I mprovements, P roject No. 2021-05
- Motion to approve a resolution approving a settlement agreement for
Brooklyn Boulevard Corridor Project Phase 2 Improvements, Project No.
2021-05.
7.P resentations/Proclamations/Recognitions/Donations
8.P ublic Hearings
a.An Ordinance A mending Chapters 1, and 4 of the City Code of Ordinance
Regarding A nimal Waste, and S torage of Deicing Materials
- Motion to approve the Second Reading of an Ordinance Amending
Chapter 1, and 4 of the City Code of Ordi nances Regarding Animal Waste,
and Storage of Deicing Materials.
9.P lanning Commission Items
10.Council Consideration Items
11.Council Report
12.Adjournment
C ouncil R egular M eeng
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:Barb S uciu, A ssistant City Manager/C ity C lerk
S U B J E C T:A pproval of Minutes
Requested Council A con:
- moon to approve the following meengs:
J une 12 Study Session
June 12 Regular S ession
B ackground:
I n accordance with M innesota S tate S tatute 15.17, the official records of all mee6ngs must be documented
and approved by the governing body.
B udget I ssues:
I nclusive C ommunity Engagement:
A nracist/Equity Policy Effect:
AT TA C H M E N TS :
D escrip6on U pload D ate Type
6.12 S tudy S es s ion Mee6ng M inutes 6/20/2023 Backup M aterial
6.12 Regular S essiio M ee6ng Minutes 6/23/2023 Backup M aterial
6/12/23 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
STUDY SESSION
JUNE 12, 2023
CITY HALL – COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council met in Study Session called to order by Mayor April Graves at
6:07 p.m.
ROLL CALL
Mayor April Graves and Councilmembers Kris Lawrence-Anderson, Marquita Butler (arrived at
6:12 p.m.), and Dan Jerzak. Councilmember Teneshia Kragness was absent. Also present were
City Manager Reggie Edwards, City Clerk Barb Suciu, and City Attorney Jason Hill.
CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS
Councilmember Jerzak requested that Regular Session Consent Agenda Items 6c. Resolution
Approving the Labor Agreement for the Law Enforcement Labor Services, Inc. (LELS NUMBER
512) and the City of Brooklyn Center for the Period Beginning May 22, 2022, 2023, and 2024 and
6d. Resolution Approving the Labor Agreement for Law Enforcement Labor Services, Inc. (LELS
NUMBER 520) and the City of Brooklyn Center for the Period Beginning May 22, 2022, years
2023, and 2024 be removed from the Consent Agenda due to a conflict of interest.
City Manager Reggie Edwards stated the items could be moved to Regular Session to Council
Consideration Items 10b. Resolution Approving the Labor Agreement for the Law Enforcement
Labor Services, Inc. (LELS NUMBER 512) and the City of Brooklyn Center for the Period
Beginning May 22, 2022, 2023, and 2024 and 10c. Resolution Approving the Labor Agreement
for Law Enforcement Labor Services, Inc. (LELS NUMBER 520) and the City of Brooklyn Center
for the Period Beginning May 22, 2022, years 2023, and 2024 due to a conflict of interest.
MISCELLANEOUS
Councilmember Jerzak stated there was an email sent to the Council and City Clerk Barb Suciu.
He read the email in full regarding consistent loud music at Northport Park. The writer felt that the
music is intimidating and inappropriate. The writer requested the letter be read aloud at a Council
meeting. The parks are meant for all community members to feel welcome. The writer was Patty
Koenig. She also cited a code that is in violation due to the loud music.
Councilmember Butler arrived at 6:12 p.m.
6/12/23 -2- DRAFT
Mayor Graves noted she remembers a similar complaint in the park from a previous summer. She
stated she doesn’t have an issue with music being played in public spaces, but it shouldn’t be forced
upon residents. Dr. Edwards stated staff is working on hiring a new person that would be
responsible to ensure parks and events are completed in an orderly manner among other things.
Councilmember Butler confirmed the park does get rather loud on the weekends. She pointed out
there have been issues in neighboring cities with large groups of youth gathering in parks.
Councilmember Jerzak asked for a Staff member to reach out directly to Patty Koenig in the
interim so she feels heard.
Dr. Edwards stated Regular Session Consent Agenda Item 6h. An Ordinance Amending Chapter
35 of the City Code of Ordinance Regarding Application Requirements for Land Disturbance
Permits (1st reading) needs to be removed as the Planning Commission did not reach a quorum to
review the matter.
Mayor Graves stated she would like an update on the absences of each member of the Planning
Commission. Councilmember Jerzak requested the weekly emails to detail any issues with the
Commissions meeting quorum.
Councilmember Jerzak stated David Abrahamson sent correspondence to the Mayor requesting
that North Memorial Ambulance Service at 4501 68th Avenue North move their location to an area
with fewer residences nearby as it would create a better living environment for all residents. The
writer stated he hears sirens daily and it disturbs his attempts to enjoy the nearby nature.
Mayor Graves stated she sympathizes with the writer as the sirens can be frustrating to hear.
However, the Council doesn’t have any power in that situation. Also, it can be beneficial for such
services to be close to residential areas.
Councilmember Butler suggested sharing the concerns with North Memorial Ambulance Service.
They could potentially wait to turn on their sirens until on a main road rather than using sirens in
the neighborhood.
Councilmember Jerzak asked if the Council could receive information about the dog park and why
it was pushed back. If there is a labor issue, the Council should be aware of it.
Councilmember Jerzak also requested an update from staff regarding questions the Council had
about group homes, a progress report on crime upticks in the City, and information about if
community intervenors have been deployed. He stated he would like an update regarding grants
and the recent opioid presentation and when the employee survey would be completed. Also, the
Council needs an update on the process for the potential sales tax so they can prepare for it to be
on the ballot if need be and financial reports related to the American Rescue Plan Act.
6/12/23 -3- DRAFT
Dr. Edwards stated the community intervenors have been deployed, but he would get more updates
on that topic along with the others listed by Councilmember Jerzak.
Councilmember Jerzak pointed out that the Council had previously considered revisiting the
Daunte Wright and Kobe Dimock-Heisler Community Safety and Violence Prevention Act which
would be important to do prior to budget discussions.
Mayor Graves stated she would like to hold off on that conversation until the staff presents their
recommendations. Mayor Graves asked if there were any legal requirements with timing. City
Attorney Jason Hill stated there are no legal requirements related to timing and the Daunte
Wright and Kobe Dimock-Heisler Community Safety and Violence Prevention Act.
Councilmember Jerzak asked if the Council was still waiting for the Implementation Committee's
presentation. If so, he asked when that would be held. Mayor Graves stated the presentation was
supposed to be on May 8, 2023. However, it was postponed. There is a desire for LaToya Turk and
the Police Chief to do a joint presentation on the topic. However, they have not had an opportunity
to meet and prepare for a presentation.
Dr. Edwards stated a date would likely be set for the traffic stop presentation by the next Council
meeting. As for the alternative response recommendations, staff has been in communication with
Hennepin County regarding their embedded response program.
Councilmember Jerzak noted he asked about the Daunte Wright and Kobe Dimock-
Heisler Community Safety and Violence Prevention Act because of grant funding the City has
received for pilot programs and the potential need for budget discussions regarding funding for
programming.
Dr. Edwards explained the budget will include programs that are financially prudent. Staff has kept
the grant funders up-to-date on the process, and there is no deadline to use the funds.
Mayor Graves agreed she would like an update on the community intervenors and when they are
working in the community.
Mayor Graves stated she had a proclamation to add to the Regular Session Agenda recognizing a
Park Center graduate for being a safety in the NFL and providing youth football programming
within the Brooklyn Center community.
Councilmember Lawrence-Anderson asked what the status of the labor study is. Dr. Edwards
stated the organization asked for an extension that was granted through the end of June.
Mayor Graves asked if the Finance Commission and the new Councilmembers were provided with
the sales tax discussion from May. If not, it would be beneficial for them to review it. Dr. Edwards
confirmed staff can recirculate the presentation. He noted that staff would provide another sales
tax presentation when presented to Council.
6/12/23 -4- DRAFT
ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL
Mayor Graves closed the Study Session at 6:35 p.m.
6/12/23 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
REGULAR SESSION
JUNE 12, 2023
CITY HALL – COUNCIL CHAMBERS
1. INFORMAL OPEN FORUM WITH CITY COUNCIL
CALL TO ORDER INFORMAL OPEN FORUM
The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor April
Graves at 6:47 p.m.
ROLL CALL
Mayor April Graves and Councilmembers Marquita Butler, Kris Lawrence-Anderson, and Dan
Jerzak. Councilmember Teneshia Kragness was absent. Also present were City Manager Reggie
Edwards, Assistant City Engineer James Soltis, City Clerk Barb Suciu, and City Attorney Jason
Hill.
Mayor April Graves opened the meeting for the purpose of an Informal Open Forum.
Julie B. noted she also wrote a letter to Council that she hoped would be discussed by the Council.
She asked for a response to the letter she wrote. She asked how it is determined which letters are
read to the public or not. Julie B. stated she received one response, but it seemed to miss some of
the points of her letter. She stated there needs to be a policy of expectations and equity about what
information is shared, not to mention regarding Committees and Commissions.
Mayor Graves stated Julie B.’s question was regarding the lack of quorum when grant information
was presented to the Council. She read the email from Julie B. The email stated Julie B. was
shocked after listening to the presentation on grant oversight. The Finance Commission somehow
created a policy without meeting the quorum for quite some time. Also, there should be input from
community members included in the process. The restrictions are stringent and are a roadblock to
progress. Julie B. mentioned it was troubling to hear that the policy was copied from Bloomington
as it is twice the size of Brooklyn Center and is mostly white. Their budget is much greater and
has several different revenue streams. Julie B. asked why there weren’t town hall meetings
regarding the proposed policy. The process seems rushed and procedures are being circumvented
for the Finance Commission. Brooklyn Center has the opportunity to do better than they have in
the past. Equitable practices need to be established and followed. There are also no minutes for the
Finance Commission available.
Mayor Graves stated the Council had a robust discussion about grant management and sought to
find a compromise between being aware of the happenings without micro-managing. It can be
6/12/23 -2- DRAFT
valuable to look to the policies of multiple cities. Council has been having the conversation for a
while, but there has only been one initial presentation to the Council on the topic.
Councilmember Lawrence-Anderson noted she had responded to the email from Julie B. She stated
policies are Council decisions. A financial policy isn’t relevant for community feedback beyond
the input from community members on the Finance Commission. As for the reference to
Bloomington, if a City that large is able to have a grant policy be successful, it is very likely a
smaller city could also be successful. Again, it was a first reading and still needs staff
recommendations.
Councilmember Jerzak agreed Council had a robust discussion about grant management and came
to a solid compromise. The Council just wants to be aware of the money going in and coming out
of the City. The Finance Director went through the League of Minnesota Cities to do her due
diligence in looking for comparable policies. Councilmember Jerzak clarified that Committee and
Commissions can still meet without a quorum, but they cannot vote without a quorum.
Councilmember Jerzak pointed out community input can be provided in a number of ways such as
through informal public forums, attendance at public meetings, participation in Committees and
Commissions, and more. Many cities have policies regarding community input, but Brooklyn
Center does not restrict community input in such a way. As for the mention of bias against certain
Departments, that is not the case in the slightest.
Mayor Graves suggested there could be a public comment period added after the next presentation
of the grant management policy.
Councilmember Butler asked for staff to provide more information on how the policy was put
together as Julie B. expressed concerns about transparency.
Matt O. asked Mayor Graves if she would like an alternate to attend the Wednesday meeting as
she is unavailable. Mayor Graves stated Cordell Wiseman would attend the Northwest Tourism
Board meeting. Councilmember Lawrence-Anderson stated she would also attend the meeting.
Matt O. stated an employee of his saw a sign about work being done on the Daunte Wright
Memorial. He asked if there is an opportunity for community input. Dr. Edwards stated there will
be an unveiling later on in the summer. There will be more communications with the community
about the Memorial project. Any communication is done in collaboration with the Wright family,
and they have a meeting scheduled for the following day regarding the Memorial.
Councilmember Jerzak moved and Councilmember Butler seconded to close the Informal Open
Forum at 7:05 p.m.
Motion passed unanimously.
6/12/23 -3- DRAFT
2. INVOCATION
Councilmember Butler pointed out the Juneteenth holiday will be recognized on Monday, June 19,
2023. In 1863 during the Civil War, Abraham Lincoln issued the Emancipation Proclamation.
However, it would be more than two years until the news reached the African Americans in Texas.
The first official Juneteenth celebration was held the year after.
Councilmember Butler shared a quote by Desmond Tutu, “My humanity is bound up in yours, for
we can only be human together.”
Mayor Graves stated there will be a number of events in Brooklyn Center to celebrate Juneteenth.
Thursday, June 15, 2023, will be a dinner and panel discussion at the Brooklyn Center Community
Center. There is a golf tournament at Centerbrook Golf Course on June 16, 2023. Then there will
be a full-day Juneteenth Celebration on Saturday, June 17, 2023, at Centennial Park to include
entertainment, food, vendors, activities, face painting, balloon art, and more.
Councilmember Jerzak asked if there will be a Council booth. Mayor Graves stated she just walked
around the event in previous years. She asked if there could be a booth. Dr. Edwards stated he
would have to check.
3. CALL TO ORDER REGULAR BUSINESS MEETING
The Brooklyn Center City Council met in Regular Session called to order by Mayor April Graves
at 7:09 p.m.
4. ROLL CALL
Mayor April Graves and Councilmembers Marquita Butler, Kris Lawrence-Anderson, and Dan
Jerzak. Councilmember Teneshia Kragness was absent. Also present were City Manager Reggie
Edwards, Assistant City Engineer James Soltis, City Clerk Barb Suciu, and City Attorne y Jason
Hill.
5. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
6. APPROVAL OF AGENDA AND CONSENT AGENDA
Mayor Graves explained there was a discussion of the Consent Agenda at the Study Session.
Councilmember Jerzak requested that Regular Session Consent Agenda Items 6c. Resolution
Approving the Labor Agreement for the Law Enforcement Labor Services, Inc. (LELS NUMBER
512) and the City of Brooklyn Center for the Period Beginning May 22, 2022, 2023, and 2024 and
6d. Resolution Approving the Labor Agreement for Law Enforcement Labor Services, Inc. (LELS
NUMBER 520) and the City of Brooklyn Center for the Period Beginning May 22, 2022, years
2023, and 2024 be removed from the Consent Agenda due to a conflict of interest. It was agreed
6/12/23 -4- DRAFT
that this item would be moved to Regular Session to Council Consideration Items 10b. Resolution
Approving the Labor Agreement for the Law Enforcement Labor Services, Inc. (LELS NUMBER
512) and the City of Brooklyn Center for the Period Beginning May 22, 2022, 2023, and 2024 and
10c. Resolution Approving the Labor Agreement for Law Enforcement Labor Services, Inc.
(LELS NUMBER 520) and the City of Brooklyn Center for the Period Beginning May 22, 2022,
years 2023, and 2024 due to a conflict of interest.
Mayor Graves noted Dr. Edwards had indicated that Regular Session Consent Agenda Item 6h. An
Ordinance Amending Chapter 35 of the City Code of Ordinance Regarding Application
Requirements for Land Disturbance Permits (1st reading) needs to be removed as the Planning
Commission did not reach a quorum to review the matter. Lastly, there will be an additional
proclamation on the agenda.
Councilmember Jerzak moved and Councilmember Butler seconded to approve the Agenda and
Consent Agenda, as amended, and the following consent items were approved:
6a. APPROVAL OF MINUTES
1. April 24, 2023 – Work Session
2. May 8, 2023 – Regular Session
3. May 22, 2023 – Study Session
4. May 22, 2023 – Regular Session
5. May 22, 2023 – Work Session
6b. LICENSES
GARBAGE HAULERS
Allied Waste Services of North America, LLC, 8661 Rendova Street NE,
Circle Pines, MN 55014
BL23-0342
Midwest Grease 220 Ponderosa Road,
Redwood Falls, MN 56283
BL23-0307
Waste Management – Blaine 10050 Naples Street NE,
Blaine, MN 55446
BL23-0352
MECHANICAL
Anderson’s Residential Heating & A/C 1628 County Road 10, #34,
Spring Lake Park, 55432
Forward Air, Inc. FFM LLC 9220 Wright Bros Court SW,
Cedar Rapids 52404
6/12/23 -5- DRAFT
Friendly Home Services Inc. 11792 272nd Avenue NW,
Zimmerman 55398
Homeworks Services LLC 915 Blue Gentian Road,
Suite 100, Eagan 55121
Kirts Mechanical LLC 2803 Roth Place,
White Bear Lake 55110
Liberty Comfort Systems 627 East River Road,
Anoka 55303
Midwest Electric and Generator 10215 Twin Lakes Road NW,
Elk River 55330
Ray Welter Htg Co. 4637 Chicago Avenue S,
Minneapolis 55407
Schwantes Heating and Air Conditioning, Inc. 6080 Oren Avenue S,
Stillwater 55082
Southside Heating & Air Conditioning Inc. 10808 Normandale
Boulevard, Bloomington
55437
St. Paul Plumbing & Heating Co. 640 Grand Avenue,
St. Paul 55105
Tim’s Quality Plbg. 225 County Road 81,
Osseo 55369
WJW Company 10068 Flanders Court,
Blaine 55449
RENTAL
INITIAL (TYPE II – two-year license)
2801 67th Lane N P J Carey & M J Carey
3715 58th Avenue N Saldi Home Improvement Llc
RENEWAL (TYPE IV – six-month license)
1600 71st Avenue N Fyr Sfr Borrower Llc
1900 Brookview Drive Ih3 Property Minnesota Lp
6/12/23 -6- DRAFT
2607 65th Avenue N Oluwaferanmi Amusan
3141 49th Avenue N Ccf3 Llc
3906 Janet Lane Lateef Olayiwola Adeleke
5024 71st Avenue N Fyr Sfr Borrower Llc
5344 Twin Lake Boulevard E Takasi Sibuya
6325 Kyle Avenue N Cuong Pham
7225 Major Avenue N Iasis Iii Llc
RENEWAL (TYPE III – one-year license)
700 66th Avenue N Georgetown-bc Company
Lllp
1217 54th Avenue N Jackson Hurst & Cierra Hurst
7206-12 West River Road Jason L Ingbretson
7013 Knox Avenue N HPA II BORROWER 2021-1
LLC
RENEWAL (TYPE II – two-year license)
407 70th Avenue N Gary F Brummer
4809 Twin Lake Avenue N Twin Lake Apartments, LLC
4811 Lakeview Avenue N Eileen Booker
6125 Lilac Drive N Lanel Crossings Ltd Ptnrshp
4207 Lakeside Avenue N, #236 Judith C Spanberger
5542 Irving Avenue N Ri Five Llces
6219 Chowen Avenue N Butterfly Bound Care
RENEWAL (TYPE I – three-year license)
5550 Girard Avenue N Restart Inc
5636 Fremont Avenue N Alice I Mansaray
6/12/23 -7- DRAFT
5712 Northport Drive R & C Scherbing Fam Rv Lv
Tr
6600 Dupont Avenue N Thomas Le & Mai Le
7024 Newton Avenue N T Pfingsten & M W Omelia
7137 Grimes Avenue N Shawn Banks & Djuana J
Banks
SIGNHANGER
Signcrafters Outdoor 14050 Lincoln St. NE,
Ham Lake 55304
6e. ORDINANCE NO. 2023-02 AMENDING CHAPTERS 1, AND 4 OF THE
CITY CODE OF ORDINANCE REGARDING ANIMAL WASTE, AND
STORAGE OF DEICING MATERIALS (1ST READING)
6f. RESOLUTION NO. 2023-67 ACCEPTING BID AND AWARDING A
CONTRACT, IMPROVEMENT PROJECT NOS. 2023-01, 02, AND 03, 2023
STREET AND UTILITY IMPROVEMENTS
6g. RESOLUTION NO. 2023-68 ACCEPTING BID AND AWARDING A
CONTRACT, IMPROVEMENT PROJECT NOS. 2023-04 AND 05, 2023
TRAIL AND PARKING LOT IMPROVEMENTS
Motion passed unanimously.
7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS
7a. PROCLAMATION RECOGNIZING THE 2023 GRADUATING CLASS
BROOKLYN CENTER HIGH SCHOOL, THE EARLY COLLEGE ACADEMY,
AND INSIGHT SCHOOL OF MINNESOTA
Mayor Graves read in full a Proclamation Recognizing the 2023 Graduating Class of Brooklyn
Center High School, the Early College Academy, and Insight School of Minnesota.
Councilmember Butler moved and Councilmember Jerzak seconded to accept the Proclamation
Recognizing the 2023 Graduating Class Brooklyn Center High School, the Early College
Academy, and Insight School of Minnesota.
Motion passed unanimously.
7b. PROCLAMATION DECLARING JUNE 14, 2023, "FRIEDA FARLEY DAY" AS
SHE CELEBRATES HER 103 BIRTHDAY
6/12/23 -8- DRAFT
Mayor Graves read in full a Proclamation Declaring June 14, 2023, "Frieda Farley Day" as she
Celebrates her 103 Birthday.
Councilmember Butler moved and Councilmember Jerzak seconded to accept the Proclamation
Declaring June 14, 2023, "Frieda Farley Day" as she Celebrates her 103 Birthday.
Motion passed unanimously.
7c. PROCLAMATION DECLARING THE MONTH OF JUNE AS PRIDE MONTH
Mayor Graves read in full a Proclamation Declaring the Month of June as Pride Month.
Councilmember Jerzak moved and Councilmember Butler seconded to accept the Proclamation
Declaring the Month of June as Pride Month.
Motion passed unanimously.
Mayor Graves noted she recently co-facilitated a training with OutFront. It was a great
conversation.
7d. PROCLAMATION RECOGNIZING
Mayor Graves read in full a Proclamation Declaring the Month of June as Pride Month.
Councilmember Butler moved and Councilmember Jerzak seconded to accept the Proclamation
Declaring the Month of June as Pride Month.
Motion passed unanimously.
8. PUBLIC HEARINGS
8a. ORDINANCE NO. 2023-03 VACATING CERTAIN EASEMENTS WITHIN LOTS
1, 2, AND 3, BLOCK 6, WANGSTAD’S BROOKLYN TERRACE, HENNEPIN
COUNTY, MINNESOTA IN THE CITY OF BROOKLYN CENTER, MINNESOTA
City Manager Reggie Edwards introduced the item and invited Assistant City Engineer James
Soltis to continue the presentation.
Assistant City Engineer James Soltis stated the Wangstad Commons development was previously
approved by Council on May 8, 2023. Mr. Soltis showed an overview of the site. The public
hearing is to consider vacating certain easements as referenced above that are associated with the
Wangstad Commons site redevelopment. The Planning Commission has reviewed the final plat
for Wangstad’s Brooklyn Terrace Second. In connection with the final plat and easement
dedication proceedings, the developer is requesting the release and termination of easements that
are either no longer needed or are being replaced by new easements.
6/12/23 -9- DRAFT
Mr. Soltis explained it is the staff’s opinion that the easement proposed to be vacated is no longer
needed and should not negatively affect rights to public easements. All relevant entities have been
notified. Staff is unaware of any entity objecting to the proposed vacation.
Councilmember Butler moved and Councilmember Lawrence-Anderson seconded to open the
Public Hearing.
Motion passed unanimously.
No one appeared to address this item.
Councilmember Jerzak moved and Councilmember Lawrence-Anderson seconded to close the
Public Hearing.
Motion passed unanimously.
Councilmember Butler moved and Councilmember Jerzak seconded to adopt ORDINANCE NO.
2023-03, An Ordinance Vacating Certain Easements as referenced above that are associated with
the Wangstad Commons Site Redevelopment in Connection with the Proposed Final Plat of
Wangstad’s Brooklyn Terrace Second.
Motion passed unanimously.
9. PLANNING COMMISSION ITEMS
10. COUNCIL CONSIDERATION ITEMS
10a. INTERIM ORDINANCE NO. 2023-04 AUTHORIZING A STUDY AND IMPOSING
A MORATORIUM ON THE OPERATION OF A CANNABIS BUSINESS WITHIN
THE CITY OF BROOKLYN CENTER
Dr. Edwards introduced the item and invited City Attorney Jason Hill to make the Staff
presentation.
Mr. Hill explained he would cover the creation of the Office of Cannabis Management, licensing,
regulation, and registration of retailers, the status of products legalized in 2022, and the next steps.
The presentation will not cover the impact on law enforcement and criminal statutes, human
resources concerns, and grant opportunities.
Mr. Hill stated the Office of Cannabis Management (OCM) will be established on July 1, 2023. It
will take about one year for the Office to be fully functional. The Office needs to hire a Director
and employees. OCM will be issuing the licenses rather than individual cities. There will be 16
categories of licenses to include options such as cannabis microbusiness, mezzobusiness,
cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, and event organizer.
Another consideration will be lower-potency hemp edible manufacturers, and retailers.
6/12/23 -10- DRAFT
Mr. Hill stated the City will have a limited role in licensing. Within 30 days of receiving a copy of
an application for a cannabis business license, the City must certify whether a proposed cannabis
business complies with local zoning ordinances, state fire code, and building code. The City can
provide the OCM with any additional information it believes is relevant to the OCM’s decision on
whether to issue a license. The bill does not prohibit cities from enforcing other local Ordinances.
Mr. Hill pointed out that the City cannot prohibit the establishment or operation of a cannabis
business licensed under the bill. The City also cannot prohibit the possession, transportation, or
use of cannabis flowers, cannabis products, lower-potency hemp edibles, or hemp-derived
consumer products. However, if conducting a study of time, place, and manner restrictions for
cannabis businesses, the City can adopt an interim ordinance and moratorium applicable to
cannabis businesses that would be effective through January 1, 2025.
Mr. Hill noted the bill also allows regulation on distances from certain types of buildings/uses,
likely through zoning regulations. Specifically, prohibiting the operation of a cannabis business
within 1,000 feet of a school or 500 feet of a daycare, residential treatment facility, or an attraction
within a public park that is regularly used by minors, including a playground or athletic field.
Councilmember Butler noted the City has a limit on the number of licenses for tobacco
establishments allowed. Mr. Hill stated he would provide more details on that, but there is language
in the bill that allows a City to limit the licenses to no more than one cannabis establishment per
12,500 residents. There is also a County-wide density limit. If Hennepin County has one active
registration for every 12,500 residents, the City is not obligated to register a retail business.
Councilmember Jerzak asked if there are any provisions that wouldn’t allow liquor stores to also
sell cannabis. Mr. Hill confirmed there aren’t restrictions related to that. There is a provision that
allows municipalities to operate their own cannabis store. Councilmember Jerz ak asked if
Brooklyn Center is authorized for three licenses. Mr. Hill stated it is unclear and it will need to be
worked out by OCM rulemaking.
Mr. Hill stated the bill allows cities to adopt “reasonable restrictions on the time, place, and manner
of the operation of a cannabis business provided that such restrictions do not prohibit the
establishment or operation of cannabis businesses.” The OCM is tasked with working with local
governments to develop model ordinances that include these provisions, standardized forms, and
model policies and procedures for compliance checks.
Mr. Hill explained upon licensing, certain cannabis and hemp retailers must register with the City,
and subject to limited exceptions, the City must register the retailer and must renew the
registration. Registration does include lower-potency hemp edible retailers. The registration does
not apply to other types of cannabis businesses or licenses. Limited registration fees are available.
Before issuing a retail registration, the City may conduct a “preliminary compliance check” to
ensure that the cannabis business is in compliance with the applicable operation requirements and
the limits on the types of products that may be sold.
Mr. Hill added there is limited authority for cities to suspend a registration for up to 30 days. The
6/12/23 -11 - DRAFT
OCM will review the suspension and may order reinstatement, additional suspension, revocation,
or other licensed-based penalties or enforcement action. The City may reinstate the registration if
it determines that the violation has been cured. The City can impose civil penalties of up to $2,000
for registration violations.
Mr. Hill pointed out that at least once per calendar year, the City is required to conduct compliance
checks of every cannabis business and hemp business with a retail registration. The checks must
assess compliance with age verification requirements, the applicable operation requirements, and
the applicable limits on the types of products being sold. Checks may be performed by a law
enforcement officer or another City employee. The City is also required to “conduct unannounced
age verification compliance checks at least once each calendar year,” similar to tobacco
compliance checks. Mr. Hill added a county can issue a registration when the city or township has
provided consent for the county to issue the registrations for that city or township.
Mr. Hill explained the State imposes a 10 percent tax upon sales, which is divided as follows: 80
percent to the State’s general fund and 20 percent to the local cannabis aid account, which is
subsequently divided among cities based on total cannabis businesses in the City.
Mr. Hill stated there were a few significant changes to Minnesota Statutes, section 151.72, which
legalized low-potency, hemp THC edibles. However, changes were effective on May 31st, the day
after the Governor signed the bill. The changes allow THC edibles to be sold at exclusive liquor
stores the day after the bill is signed into law. The bill clarifies THC products can be sold for on-
site consumption at locations with an on-sale liquor license under Minnesota Statutes, Chapter
340A. There are additional regulations with regard to display, labeling, and testing. All individuals
selling THC edibles must register with the Minnesota Department of Health on or before October
1, 2023. Selling without registration after that date is prohibited. Note that this is NOT the same
registration process created for cannabis business and lower-potency hemp edible licenses.
Minnesota Statutes, section 151.72 is repealed effective March 1, 2025.
Mr. Hill noted THC edible, referring to edible cannabinoid products, sales may continue if the
seller registers with the state by October 1, 2023. The process will require a license to sell once
State begins issuing licenses. Statute is repealed effective March 1, 2025, or effectively repealed
when the state starts issuing licenses. As for lower-potency hemp edibles, THC edibles become
low-potency hemp edibles upon state licensure. The apparent intent is to manage retail sales under
the new registration and licensing program established under the new law.
Mr. Hill stated as part of the local control, a local government conducting or authorizing a study
may adopt an interim ordinance to “regulate, restrict, or prohibit the operation of a cannabis
business within the jurisdiction or a portion thereof until January 1, 2025. It that cities will need
time to study the issues associated with this new registration and licensing arrangement and to
develop land use regulations associated with this new use. A draft interim ordinance is included
with Council’s materials.
Mr. Hill stated the City must provide at least 10 days’ published notice of a public hearing on
the proposed interim ordinance. The notice may start in June, but staff recommended the Council
6/12/23 -12- DRAFT
does not hold the hearing or adopt the interim ordinance until at least July 1, 2023, because the bill
is not effective until that date.
Mr. Hill added the uncertainties associated with the existing regulatory “situation” were not
clarified in the bill and instead were allowed to continue as the state transitions to the new licensing
scheme in late 2024 to early 2025. The law treats hemp products and cannabis products separately.
THC edibles remain subject to previous law and, therefore, continue to be subject to local
regulation. Lower-potency hemp edibles require registration and a license from the State to sell,
but are not within the definition of a “cannabis business”. The previous moratorium will need to
be addressed sooner than later.
Mr. Hill stated because lower-potency hemp edibles are not a “cannabis business” they are not
subject to the language indicating a city “may not prohibit the establishment or operation of a
cannabis business”, the new moratorium on cannabis businesses, cap on the number of cannabis
businesses, city limitation on hours, not under the expressly allowed time, place, and manner
regulations, not within the language saying the OCM must deny a license if the cannabis business
does not meet local zoning and land use laws.
Mr. Hill explained the City remains under the moratorium adopted on August 22, 2022. The
moratorium cannot be extended. The City has three options, first is to do nothing. THC edible
retailers who register with the state by October 1, 2023, will continue to sell under existing statutes
until issued a lower-potency hemp edible license. Second, the Council could adopt an ordinance
regulating THC edibles to become effective on or before the moratorium expires. Last, the Council
could adopt a licensing ordinance with the understanding that it will only be in effect for around
18 months.
Mr. Hill stated the City needs to decide if it will opt out of requiring local registration. The City
can opt-out by giving consent to County to issue registrations. In that scenario, there would be no
fees, no requirement to conduct compliance checks, and the City cannot impose a limit on the
number of retailers. If the City requires local registration, the City may collect registration fees,
must conduct a compliance check, and may impose a limit on the number of retailers. Registration
only applies to certain retail establishments. The City may suspend a registration for up to 30 days
if it determines the business is not operating in accordance with the law. Then the City must
immediately give notice to OCM. OCM can override the suspension and order reinstatement or
revoke the license.
Mr. Hill noted the City may, by ordinance, further restrict the hours of operation for the sale of
cannabis and hemp products. From a Statutory standpoint, sales are prohibited between 2:00 a.m.
and 8:00 a.m. Monday through Saturday and between 2:00 a.m. and 10:00 a.m. on Sunday. The
City restriction can prohibit sales for any period between 9:00 p.m. and 2:00 a.m. or between 8:00
a.m. and 10:00 a.m. Monday through Saturday.
Mr. Hill added the City will need to decide if it will sell THC edibles and the lower-potency hemp
edibles at the City’s liquor stores. Cities need to register with the state by October 1, 2023, and
will need to apply for and obtain a lower-potency hemp edibles license when they are available.
6/12/23 -13- DRAFT
Brooklyn Center will also have to decide if the City will open its own municipal cannabis store.
There is no express authority for an exclusive municipal cannabis business. Staff has been working
with the League of Minnesota Cities on whether there is insurance coverage for selling these
products at a liquor store or as part of a municipal cannabis business.
Mr. Hill explained the City needs to be prepared to intake applications from OCM and determine
if the proposed business complies with local zoning, state fire code, and building code and respond
to OCM within 30 days. The City must also determine a process for suspending retail registrations,
notifying OCM, and reinstating the registration. Brooklyn Center should also consider a process
for submitting complaints to OCM, which is supposed to provide an expedited review process of
City complaints.
Councilmember Jerzak asked if there are any existing THC licenses in the City. If so, they must
determine how staff educate them on the new bill. He asked if the Council will decide if the Liquor
Stores can offer cannabis products or if it will be done administratively. Dr. Edwards stated that
staff will bring the question about offering cannabis products back to the Council with a
presentation.
Mr. Hill stated no one in Brooklyn Center should be selling THC due to the moratorium passed by
Council last year.
Councilmember Jerzak asked if there will be a presentation to the Council regarding cannabis use
by City employees. Mr. Hill confirmed staff would review some human resources options to
present to Council.
Mayor Graves asked if the moratorium would impact the allowed use and transportation of
cannabis. Mr. Hill confirmed the moratorium only applies to sales. Mayor Graves asked if the
moratorium would hamper local businesses or entrepreneurship. Mr. Hill stated most cities are
implementing a moratorium which can be repealed at any time. The bill offers some options for
grants and educational opportunities for potential retailers either way.
Mayor Graves stated it is her opinion that they don’t need to do anything with the previous
moratorium as it has not presented any issues.
Councilmember Jerzak stated he wants entrepreneurial opportunities to go to Brooklyn Center and
not be grabbed by other cities. Mr. Hill stated there is no limit on the number of licenses in
Brooklyn Center based on the number of licenses in the County.
Mayor Graves stated she isn’t opposed to selling edibles in the City’s municipal stores. She asked
what the staff’s recommendation is. Dr. Edwards stated staff is interested in the possibility and will
provide a presentation to Council in the future.
Councilmember Lawrence-Anderson asked if the minimum purchasing age is 21 years old for
cannabis. Mr. Hill confirmed that this is correct. Councilmember Lawrence-Anderson explained
she is inclined to support the moratorium as there are many details that need to be worked out. She
6/12/23 -14- DRAFT
also doesn’t see an issue with selling THC products in municipal stores. However, she would like
to see public input gathered on the topic. There should also be community education about the
options.
Councilmember Jerzak stated he has several questions on the topic before stating if he supports
THC sales in municipal stores. He explained he wants feedback from staff and law enforcement.
He noted he would support the effort if it can be done safely and support the City financially.
Councilmember Butler noted her support of the moratorium.
Councilmember Lawrence-Anderson moved and Councilmember Butler seconded to approve the
First Reading of an Interim Ordinance Authorizing a Study and Imposing a Moratorium on the
Operation of a Cannabis Business within the City of Brooklyn Center.
Motion passed unanimously.
10b. RESOLUTION NO. 2023-69 APPROVING THE LABOR AGREEMENT FOR THE
LAW ENFORCEMENT LABOR SERVICES, INC. (LELS NUMBER 512) AND
THE CITY OF BROOKLYN CENTER FOR THE PERIOD BEGINNING MAY 22,
2022, 2023, AND 2024
Councilmember Lawrence-Anderson moved and Councilmember Butler seconded to adopt
RESOLUTION NO. 2023-69, A Resolution Approving the Labor Agreement for the Law
Enforcement Labor Services, Inc. (LELS NUMBER 512) and the City of Brooklyn Center for the
period May 22, 2022, years 2023 and 2024.
Councilmember Jerzak abstained from the same. Motion passed.
10c. RESOLUTION NO 2023-70 APPROVING THE LABOR AGREEMENT FOR LAW
ENFORCEMENT LABOR SERVICES, INC. (LELS NUMBER 520) AND THE
CITY OF BROOKLYN CENTER FOR THE PERIOD BEGINNING MAY 22, 2022,
YEARS 2023, AND 2024
Councilmember Lawrence-Anderson moved and Councilmember Butler seconded to adopt
RESOLUTION NO. 2023-70, A Resolution for the Labor Agreement for Law Enforcement Labor
Agreement, Inc. (LELS NUMBER 520) and the City of Brooklyn Center for the period beginning
May 22, 2022, years 2023, and 2024.
Councilmember Jerzak abstained from the same. Motion passed.
11. COUNCIL REPORT
Mayor Graves reported on her attendance at the following and provided information on the
following upcoming events:
6/12/23 -15- DRAFT
Attended the strategic planning session. She encouraged folks to participate in the strategic
planning survey, especially those who are Spanish-speaking and Hmong.
Attended the Twin Lake neighborhood meeting.
Toured Jammin Wings event space.
Attended Twin Cities Leadership Breakfast.
Noted there is a new diverse grocery store on Humboldt.
Attended Regional Council of Mayors meeting.
Attended Women Winning Luncheon.
Noted she would be out of town for a number of days, and Councilmember Lawrence-
Anderson would serve as Mayor Pro Tem if need be.
Councilmember Jerzak reported on his attendance at the following and provided information on
the following upcoming events:
Attended grand opening of Value Foods.
Attended the strategic planning session.
Attended the Twin Lake neighborhood meeting.
Met with several constituents and business owners.
Attended neighborhood breakfast.
Attended Improving Youth Justice: A Community Conversation in Brooklyn Park. There
were important topics discussed that could be used in Brooklyn Center.
12. ADJOURNMENT
Councilmember Jerzak moved and Councilmember Butler seconded the adjournment of the City
Council meeting at 8:20 p.m.
Motion passed unanimously.
C ouncil R egular M eeng
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:S hannon Pe+t, D eputy C ity C lerk
S U B J E C T:A pproval of Licens es
Requested Council A con:
- moon to approve the licenses as presented.
B ackground:
The following bus inesses /persons have applied for C ity licens es as noted. Each bus iness/pers on has
fulfilled the requirements of the C ity O rdinance governing respec6ve licens es, s ubmi7ed appropriate
applica6ons, and paid proper fees. A pplicants for rental dwelling licens es are in compliance with C hapter 12
of the C ity C ode of O rdinances , unles s comments are noted below the property addres s on the a7ached
rental report.
M echanical
A dmiral Radon M echanical S ervices L L C
13816 Utah Ave, S avage 55378
Elk River H ea6ng & A ir Condi6oning I nc.
11110 I ndustrial C ir N W, Elk River 55330
F lare H ea6ng and A ir Cond
9303 P lymouth Ave N, 55427
Lake C ountry P lumbing, H ea6ng & A ir
603 17th Ave N, S outh S t. Paul 55075
Royalton H ea6ng & A /C
4120 85th Ave N, Brooklyn Park 55443
S hac, L L C
1240 Trapp Rd, S uite A , Eagan 55121
The C rew Facility M aintenance, I nc.
12901 16th Ave N, S uite 103, P lymouth 55441
B udget I ssues:
- None
I nclusive C ommunity Engagement:
- None
A nracist/Equity Policy Effect:
- None
S trategic Priories and Values:
S afe, S ecure, S table C ommunity, O pera6onal Excellence
AT TA C H M E N TS :
D escrip6on U pload D ate Type
Rental C riteria 6/20/2023 Backup M aterial
Rental L icenses 06/26/23 6/22/2023 Backup M aterial
Page 2 of 2
b.Police Service Calls.
Police call rates will be based on the average number of valid police calls per unit per
year. Police incidences for purposes of determining licensing categories shall include
disorderly activities and nuisances as defined in Section 12-911, and events
categorized as Part I crimes in the Uniform Crime Reporting System including
homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson.
Calls will not be counted for purposes of determining licensing categories where the
victim and suspect are “Family or household members” as defined in the Domestic
Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a
report of “Domestic Abuse” as defined in the Domestic Abuse Act, Minnesota Statutes,
Section 518B.01, Subd. 2 (a).
License
Category
Number of
Units
Validated Calls for Disorderly Conduct
Service & Part I Crimes
(Calls Per Unit/Year)
No
Category
Impact
1-2 0-1
3-4 units 0-0.25
5 or more units 0-0.35
Decrease 1
Category
1-2 Greater than 1 but not more than 3
3-4 units Greater than 0.25 but not more than 1
5 or more units Greater than 0.35 but not more than 0.50
Decrease 2
Categories
1-2 Greater than 3
3-4 units Greater than 1
5 or more units Greater than 0.50
Property Code and Nuisance Violations Criteria
License Category
(Based on Property
Code Only)
Number of Units Property Code Violations per
Inspected Unit
Type I – 3 Year 1-2 units 0-2
3+ units 0-0.75
Type II – 2 Year 1-2 units Greater than 2 but not more than 5
3+ units Greater than 0.75 but not more than 1.5
Type III – 1 Year 1-2 units Greater than 5 but not more than 9
3+ units Greater than 1.5 but not more than 3
Type IV – 6 Months 1-2 units Greater than 9
3+ units Greater than 3
Location Address License Subtype Renewal/Initial Owner
Property Code
Violations
License
Type Police CFS*
Final
License
Type**
Previous
License
Type***
Consecutive
Type IV's
4207 Lakeside Ave N, #124 Condo Initial DON STENBERG
1 Type I N/A Type II N/A N/A
6830 Perry Ave N Single Initial AA HOMES LLC
10 Type IV N/A Type IV N/A 0
7025 Quail Ave N Single Initial Edward Laudat
16 Type IV N/A Type IV N/A 0
1300 67th Ave N
Multiple Family
5 Bldgs 90 Units Renewal Roger And Elizabeth
229 = 2.54 per unit Type III 0 Type III Type II N/A
4408 69th Ave N
Multiple Family
1 Bldg 10 Units Renewal
Dmow Llc
Met Requirements 15 = 1.5 per unit Type II 0 Type II Type III N/A
4201 Lakeside Ave N, #316 Condo Renewal Maria Moldenhauer
2 Type I 0 Type I Type I N/A
2701 Ohenry Single Renewal Sherman Yih Feng Kho
8 Type III 0 Type III Type III N/A
3813 Janet La Single Renewal Abdirahman M Dhunkal
7 Type III 0 Type III Type I N/A
5700 Camden Ave N Single Renewal
Danmark Properties Llc
Met Requirements
20 Type IV 0 Type IV Type IV 6
6119 Beard Ave N Single Renewal
Wagner Property Rentals
Llc
1 Type I 0 Type I Type II N/A
6424 June Ave N Single Renewal Faisale Boukari
5 Type II 0 Type II Type I N/A
6536 Chowen Ave N Single Renewal
BRIDGE SFR IV BORROWER I
LLC
Did not meet requirements
4 Type II 0 Type IV Type IV 3
6712 Beard Ave N Single Renewal
Mlmjr Properties & Invst
Llc
17 Type IV 0 Type IV Type I 0
6900 Newton Ave N Single Renewal Fyr Sfr Borrower Llc
15 Type IV 0 Type IV Type I 0
7001 Fremont Ave N Single Renewal
Hpa Borrower 2018-1 Ml Llc
Did not meet requirements
9 Type III 0 Type IV Type IV 2
7101 Girard Ave N Single Renewal 7101 GIRARD AVE N LLC
4 Type II 0 Type II Type II N/A
7119 Halifax Ave N Single Renewal
Llc
Met Requirements
0 Type I 0 Type I Type IV N/A
Rental Licenses for Council Approval 6.26.23
7200 Lee Ave N Single Renewal
LSF9 MASTER
PARTICIPATION TR
Did not meet requirements
6 Type III 0 Type IV Type IV 3
***Initial licenses will not show a Type I = 3 Year, Type II = 2 Year, Type III = 1 Year, Type IV = 6 months
All properties are current on City utilities and property taxes
*CFS = Calls for service for renewal licenses only (Initial licenses are not applicable to calls for service, and will be listed as N/A
**License Type being issued
C ouncil R egular M eeng
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :Elizabeth H eyman, D irector of P ublic Works
BY:A hmed O mar, P.E., City Engineer
S U B J E C T:Res olu1on A pproving S e4lement A greement for Brooklyn Boulevard Corridor P roject
P hase 2 I mprovements, P roject No. 2021-05
Requested Council A con:
- Moon to approve a resoluon approving a selement agreement for Brookly n Boulevard C orridor
P roject P hase 2 I mprovements, P roject No. 2021-05.
B ackground:
O n M arch 2 5 , 2019, the C ity Council dir ected staff to proceed w ith the preliminary des ign, environmental
documenta1on, easement acquis i1 on and final des ign w ork for the Brooklyn Boulev ard C or ridor P roject
P has e 2 I mprovements (Bass Lake Road to I nters tate 94), P roject No. 2021-05. I n order to cons truct the
improvements , permanent drainage, u1lity, s idewalk and trail eas ements and/or temporary construc1on
eas ements w er e required from 47 s epar ate par cels adjacent to the corr idor. Parcel numbers are iden1fied
on the right-of-w ay plan pr epared for the project. A greement for acquisi1 on of eas ements w as reached
voluntarily with 33 affected property ow ners . I n order to meet the an1 cipated dev elopment schedule
condemna1on was perus ed on 14 parcels where no agr eement could be met. The following parcels under
condemna1on have reached a s e4lement agreement.
Parcel No. 6 ; 6013 B rook lyn Boulevard: This parcel required both permanent eas ements and
temporary cons tr uc1on eas ements with total compens a1on agreed upon in the amount of
$35,000.00.
B udget I ssues:
The B rook lyn Boulevard Corridor P r oject P hase 2 I mpr ovement (Bass L ake Road to I nterstate 94) has a
project cost es 1mated to be $18,095,000. The total appraised value for all easements on the project are
es1mated to be approximately $824,676. The total v alue of the permanent eas ements and temporary
cons truc1on eas ements for Parcels 6 is $35,000 w hich is being funded out of the Capital P rojects F und.
To date, including the above parcels, agr eements hav e been met w ith 37 out of 4 7 parcel ow ner s w ith the
total v alue of the per manent eas ements and temporary cons truc1 on eas ements for the project being
$633,220.32.
I nclusive C ommunity Engagement:
A nracist/Equity Policy Effect:
S trategic Priories and Values:
Key Transporta1on I nvestments
AT TA C H M E N TS :
D escrip1on U pload D ate Type
Res olu1on 6/15/2023 Resolu1on Le4er
S e4lement A greement 6/15/2023 Backup M aterial
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO. _______________
RESOLUTION APPROVING A SETTLEMENT AGREEMENT FOR
BROOKLYN BOULEVARD CORRIDOR PROJECT PHASE 2
IMPROVEMENTS, PROJECT NO. 2021-05
WHEREAS, the City of Brooklyn Center and Hennepin County have planned the
improvement of Brooklyn Boulevard between Bass Lake Road (County Road 10) and Interstate
94 within the City of Brooklyn Center, Minnesota in 2021; and
WHEREAS, the City, in order to acquire title and meet its anticipated
development schedule, commenced a condemnation action in Hennepin County District Court,
Court File No. 27-CV-20-15230 pursuant to a Petition filed November 19,2020, as amended on
January 12, 2021 (the “Action”); and
WHEREAS, to facilitate the Project, the Action included acquiring certain real
property interests 6013 Brooklyn Blvd and as defined as Parcel 6 within the Action (the
“Property”); and
WHEREAS, subject to approval by the City Council, representatives of the
parties have negotiated a Settlement Agreement, a copy of which is attached hereto as Exhibit A,
which resolves all outstanding claims and issues between the parties related to the Property; and
WHEREAS, the City Council has fully considered the terms of the Settlement
Agreement and has determined that it is in the best interests of the community to approve it as
presented.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that
1. The Mayor and City Manager of the City are hereby authorized and
directed to execute all appropriate documents and take all necessary
actions to facilitate the settlement contemplated herein, with all such
actions to be in accordance with the terms and conditions set forth in this
Resolution and the incorporated Settlement Agreement.
2. The Mayor and City Manager of the City, staff and consultants are hereby
authorized and directed to take any and all additional steps and actions
necessary or convenient in order to accomplish the intent of this
Resolution.
March 26, 2023
Date Mayor
RESOLUTION NO. _______________
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
C ouncil R egular M eeng
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :Elizabeth H eyman, D irector of P ublic Works
BY:J ames S ol1s , P.E., A s s is tant C ity Engineer
S U B J E C T:A n O rdinance A mending C hapters 1, and 4 of the City Code of O rdinance Regarding
A nimal Waste, and S torage of D eicing M aterials
Requested Council A con:
- Moon to approve the S econd Reading of an Or dinance A mending C hapter 1, and 4 of the C ity C ode of
Ordinances Regarding A nimal Waste, and S torage of D eicing M aterials.
B ackground:
A s part of the ci1es required Na1onal Pollutant D is charge Elimina1 on S ys tem (N P D E S ) permit regulated by
the United S tates Environmental P rotec1on A gency and the M innesota Pollu1 on Control A gency (M P C A ),
the C ity of Brooklyn Center is obligated to develop and implement policies and ordinances to minimize the
dis charge of pollutants through its municipal separate s torm s ewer sys tem (M S 4).
D ue to changes in the s tate regula1 ons as part of the M P C A G eneral Per mit (M N R0 4 0 0 0 0 ) the city is
required produce r egula1 ons and enforcement mechanis ms w ith regard to the disposal of animal w aste,
and regula1 ons regarding the storage of deicing materials at commercial, ins 1 tu1onal and non-N P D E S
permi;ed industrial facili1 es . The City is already carrying out thes e prac1ces , how ev er they need to be
codified in ordinances to be in compliance w ith our N P D E S permit. To meet these requirements
amendments to C hapters 1, and 4 of the City Code of O rdinances mus t occur.
Compliance w ith the N P D E S permit program is crucial for protec1ng and improv ing the quality of our
na1on's w ater s , and failur e to comply with the permit requirements could res ult in penal1es and
enforcement ac1 ons . H ence, it is impera1v e that the city revises our ordinances pr omptly to meet
regulatory requirements and maintain environmental protec1on.
Consistent w ith the C ity C har ter, the firs t r eading of the ordinance occurr ing on J une 12, 2 0 2 3 , w ith a
s econd reading and public hearing to cons ider the proposed ordinance to occur on J une 26, 2023. The
amended ordinance would become effec1ve June 26, 2023 if approved.
B udget I ssues:
There are no budget is s ues to consider with this ac1on.
I nclusive C ommunity Engagement:
A nracist/Equity Policy Effect:
S trategic Priories and Values:
S afe, S ecure, S table C ommunity
AT TA C H M E N TS :
D escrip1on U pload D ate Type
O rdinance 6/15/2023 O rdinance
1
CITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the ____ day of __________, 2023, at
7:00 p.m. or as soon thereafter as the matter may be heard during the regular City Council meeting
at City Hall, 6301 Shingle Creek Parkway to consider an ordinance amending Chapters 1 and 4 of
the City Code related to the disposal of animal waste and the storage of deicing materials at certain
commercial, institutional and industrial facilities.
Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance.
Please notify the City Clerk at 763-569-3306 to make arrangements.
ORDINANCE NO. ________
AN ORDINANCE AMENDING CHAPTERS 1 AND 4 OF THE CITY CODE OF
ORDINANCES REGARDING ANIMAL WASTE AND STORAGE OF DEICING
MATERIALS
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Article I. Brooklyn Center City Code, Chapter 1, Section 1-101 is amended by adding the following
double-underlined language and deleting the stricken language:
Section 1-101. DEFINITIONS. The following terms, when used in this ordinanceSection,
have the meanings ascribed to them:
1. Accredited Minnesota Institution. Accredited Minnesota institution means an
educational institution holding accredited status which has been licensed or
registered by the Minnesota Office of Higher Education at the time a registrant
obtained their certification.
2. Animal. Animal means dogs, cats, and chickens.
3. Animal Control Officer. Animal Control Officer means that person or agency
designated by the City Manager to control the keeping of animals within Brooklyn
Center.
4. Apiary. Apiary means the assembly of one or more colonies of bees on a property.
5. Apiary Site. Apiary site means the particular portions of a property upon which
one or more hives are located.
6. At Large. At large means an animal that is off the property of its owner and not
under restraint.
7. Beekeeper. Beekeeper means a person who owns or has charge of one or more
colonies of honeybees or a person who owns or controls a property on which a
2
colony is located whether or not the person is intentionally keeping honeybees.
8. Beekeeping Equipment. Beekeeping equipment means anything used in the
operation of an apiary, such as hive bodies, supers, frames, top and bottom boards,
and extractors.
9. Chicken. Chicken means a domesticated bird (Gallus gallus domesticus), typically
used as a source of meat or eggs. For the purposes of Section 1-130, all references
to chickens are to hens.
10. Chicken Coop. Chicken coop means a structure for the keeping or housing of
chickens permitted by this Chapter.
11. Chicken Run. Chicken run means a fully-enclosed and covered area attached to a
coop where the chickens can roam unsupervised.
12. Code Enforcement Officer. Code Enforcement Officer means those employees, if
designated by the City Manager, under the direct supervision of the police
department, who are authorized to issue citations for violations of this Chapter.
123. Colony. Colony means an aggregate of honey bees consisting principally of
workers, but having, when perfect, one queen and at times drones, brood, combs,
and honey.
134. Commercial Kennel. Commercial Kennel means any place limited to C2, I-1, and
I-2 zoning districts where the business of keeping, raising, selling, boarding,
breeding, showing, treating, or grooming of dogs and other animals is conducted,
including pet shops, animal hospitals, and other similar establishments.
15. Compliance Official. Compliance Official means the City Manager and the City
Manager’s designated agents authorized to administer and enforce this Chapter.
146. Family. Any of the following definitions shall apply:
a. A person or persons related by blood, marriage, or adoption, together with
any domestic servants or gratuitous guests, maintaining a common
household in a dwelling unit;
b. Group or foster care of not more than six (6) wards or clients by an
authorized person or persons, related by blood, marriage, or adoption,
together with any domestic servants or gratuitous guests, all maintaining a
common household in a dwelling unit approved and certified by the
appropriate public agency;
c. A group of not more than five (5) persons not related by blood, marriage,
or adoption maintaining a common household in a dwelling unit.
3
157. Flyway Barrier. Flyway barrier means a barrier that raises the flight path of bees
as they come and go from a hive.
168. Hen. Hen means a female chicken.
179. Hive. Hive means the receptacle inhabited by a colony.
1820. Honey Bee or Bee. Honey bee or bee means all life stages of the common domestic
honey bee, apis mellifera. This term does not include wasps, hornets, African
subspecies, or Africanized hybrids.
21. Immediately. Immediately means at once, without delay.
1922. Nucleus Colony. Nucleus colony means a small quantity of honey bees with a
queen housed in a smaller than usual hive box designed for a particular purpose,
and containing no supers.
2023. Owner. Owner means any person or the parent or guardian of a person under 18
years of age who owns, keeps, or has custody of an animal in the City of Brooklyn
Center.
2124. Person. Person means any person, firm, corporation, partnership, joint venture or
association.
2225. Registrant. Registrant is any registered beekeeper and an y person who has applied
for approval of a beekeeping registration.
2326. Rooftop. Rooftop means, for the purpose of regulating beekeeping, the uppermost
section of a primary or accessory structure of at least one full story and at least
twelve feet in height. Areas including, but not limited to, decks, patios and
balconies shall not be considered a rooftop.
2427. Rooster. Rooster means a male chicken.
28. Soil or defile. Soil or defile means to make unclean from excrement.
2529. Super. Super means a box that holds the frames where bees will store the honey.
2630. Swarming. Swarming means the process where a queen bee leaves a colony with
a large group of worker bees in order to form a new honey bee colony.
2731. Under Restraint means an animal that is controlled by a leash or at heel besides a
competent person having custody of it and obedient to that person’s commands, or
within a vehicle being driven or parked on a public street, or if it is within the
property limits of its owner’s premises.
4
2832. Unusual Aggressive Behavior. Unusually aggressive behavior means, for the
purpose of regulating beekeeping, any instance in which unusual aggressive
characteristics such as stinging or attacking without provocation occurs. For the
purposes of this definition, “provocation” means an act that an adult could
reasonably expect may cause a bee to sting or attack .
33. Waste. Waste means solid matter expelled from the bowels of the pet, or excrement.
2934. Wild Animal. Wild animal means any animal that is not normally domesticated in
the state including, but not limited to, raccoons, turkeys, coyotes, foxes, deer, feral
cats, skunks, and waterfowl.
Article II. Brooklyn Center City Code, Chapter 1 is amended by adding the following double-
underlined language as Section 1-120:
Section 1-120. ANIMAL WASTE.
1. No owner or custodian of any animal shall cause or allow such animal to soil, defile
or defecate on any public property or upon any street, sidewalk, public way, play area
or common grounds owned jointly by the members of a homeowners’ or
condominium association, or upon private property other than that of the owner,
unless such owner immediately removes and disposes of all feces deposited by such
animal in a sanitary manner.
2. It is unlawful for any person owning, keeping or harboring an animal to cause or
permit said animal to be on any public property, without having in their immediate
possession, a device for the removal of feces and depository for the transmission of
excrement to a proper receptacle located on the property owned or possessed by such
person.
3. It is unlawful for any person in control of, causing or permitting any animal to be on
any public property, to fail to remove feces left by such animal and dispose of it
properly.
4. Proper disposal of animal waste shall be limited to burial where lawfully permitted,
flushing in the toilet, bagging for disposal in the owner or keeper’s waste receptacle,
and bagging for disposal in a waste receptacle in a public park or park area.
5. Disposal of animal waste in storm drains is prohibited.
6. Disposal of animal waste in public compost is prohibited.
7. The provisions of this Section shall not apply to the ownership or use of any properly
identified service animals, animals when used for police activities, or tracking
animals when used by or with the permission of the appropriate authorities.
5
8. Any Compliance Official, Code Enforcement Officer, Animal Control Officer or an
agent designated by the City Manager should be responsible for issuing the citations.
Article III. Brooklyn Center City Code, Chapter 4, Section 4-404, Subdivision 6 is amended by
adding the following double-underlined language:
Storage of Deicing Materials at Commercial, Institutional, and Non-NPDES Permitted
Industrial Facilities.
Proper salt storage practices are required at commercial, institutional, and industrial facilities
in accordance with the Minnesota Pollution Control Agency’s General Permit to Discharge
Stormwater Associated with Small Municipal Separate Storm Sewer Systems No.
MNR040000. The following requirements apply to all designated salt storage areas at
commercial, institutional, and industrial facilities:
a. Salt storage areas must be fully covered or indoors.
b. Salt storage area must be located on an impervious surface.
c. Practices such as sweeping, diversions, and/or containment must be
implemented to reduce exposure when transferring material in designated salt
storage areas.
Article IV. Severability. Should any section or part of this ordinance be declared by a court of
competent jurisdiction to be invalid, such decision will not affect the validity of the ordinance as
a whole or any part other than the part declared invalid.
Article V. Effective Date. This ordinance shall become effective after adoption and upon thirty
days following its legal publication.
Adopted this ____ day of _____________, 2023.
_______________________________
April Graves, Mayor
ATTEST: _________________________
Barb Suciu, City Clerk
Date of Publication
Effective Date
6
(Strikeout indicates matter to be deleted, double-underline indicates new matter.)
E conomic Development
Authority
City Hall Council Chambers
J une 26, 2023
AGE NDA
1.Call to Order
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is
available to the public. The packet ring binder is located at the entrance of the council
chambers.
2.Roll Call
3.Approval of Consent Agenda
The following items are considered to be routine by the Economic Development Authority (E D A)
and will been acted by one motion. There will be no separate disc ussion of these items unless a
Commissioner so requests, in whic h event the item will be removed from the c onsent agenda
and considered at the end of Commission Consideration I tems.
a.Approval of Minutes
- Approve the meeting minutes from:
May 8
4.Commission Consideration Items
a.Resolution A pproving Certain Option Agreements with P roject for P ride in
L iving, L L C and Resolution Supporting the Use of Tax I ncrement Financing
for a Rental Housing Development P roject
- Motion to approve a resolution approving certain Option Agreements with
Project for Pride in L iving, L L C.
- Motion to approve a resolution supporting the use of tax increment financing
for a rental housing development project.
5.Adjournment
Economic Development Authority
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:Barb S uciu, A ssistant City Manager/C ity C lerk
S U B J E C T:A pproval of Minutes
Requested Council A con:
- A pprove the mee ng minutes from:
May 8
B ackground:
I n accordance with M innesota S tate S tatute 15.17, the official records of all mee6ngs must be documented
and approved by the governing body.
B udget I ssues:
- None
I nclusive C ommunity Engagement:
N/A
A nracist/Equity Policy Effect:
N/A
S trategic Priories and Values:
O pera6onal Excellence
AT TA C H M E N TS :
D escrip6on U pload D ate Type
5.8 E DA Minutes 6/20/2023 Backup M aterial
5/8/23 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MAY 8, 2023
CITY HALL – COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President April Graves at 8:36 p.m.
2. ROLL CALL
President April Graves and Commissioners Marquita Butler, Kris Lawrence-Anderson, Dan
Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Assistant City
Manager/City Clerk Barb Suciu, and City Attorney Jason Hill.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Jerzak stated he didn’t see any minutes to approve. President Graves stated the
minutes are at the back of the packet. Commissioner Jerzak apologized for missing the minutes.
Commissioner Lawrence-Anderson moved and Commissioner Kragness seconded to approve the
Agenda and Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. February 27, 2023 – Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. APPROVAL OF TIF DISTRICT #10 (WANGSTAD COMMONS) AND TIF
AGREEMENT
Executive Director Reggie Edwards introduced the item and Jason Aarsvold, EDA Project
Management with Ehlers, continued the presentation.
Jason Aarsvold, EDA Project Management with Ehlers, explained there are specific actions the
EDA would need to take to allow the project to continue moving forward. The same information
5/8/23 -2- DRAFT
was presented during the regular meeting. The action before the EDA would approve the tax
increment financing (TIF) district and requires a public hearing for sale of EDA-owned land. The
EDA will need to approve a TIF assistance agreement to formally direct assistance to the developer.
This action is planned for a future EDA meeting in a couple of months.
Commissioner Jerzak moved and Commissioner Lawrence-Anderson seconded to open the public
hearing.
The motion passed unanimously.
No one wished to address the Council.
Commissioner Kragness moved and Commissioner Jerzak seconded to open the public hearing.
The motion passed unanimously.
Commissioner Butler moved and Commissioner Jerzak seconded to adopt EDA RESOLUTION
2023-04; Removing certain parcels from Tax Increment Financing District No. 6, approving a
modification to the Redevelopment Plan for Housing Development and Redevelopment Project
No. 1, establishing Tax Increment Financing District No. 10: Wangstad Commons (a housing
district) therein, approving a tax increment financing plan therefor and authorizing the sale of
certain real property.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Lawrence-Anderson moved and Commissioner Jerzak seconded the adjournment
of the Economic Development Authority meeting at 8:42 p.m.
Motion passed unanimously.
Economic Development Authority
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :J esse A nders on, I nterim C ommunity D evelopment D irector
BY:J ason A arsvold, E DA P roject M anagement - Ehlers
S U B J E C T:Res olu1on A pproving Certain O p1on A greements with P roject for P ride in L iving, L L C and
Res olu1on S uppor1ng the U s e of Tax I ncrement F inancing for a Rental H ous ing
D evelopment P roject
Requested Council A con:
- Mo1on to approve a resolu1on approving certain O p1on A greements w ith P roject for P ride in Living, L L C.
- Mo1on to approve a resolu1on s uppor1ng the us e of tax increment financing for a rental housing
development project.
B ackground:
A s part of the first phas e of the O pportunity S ite, P roject for P ride in Living (P P L ) is res pons ible for
delivering the affordable hous ing components of the development. These buildings will be primarily
financed with L ow I ncome H ous ing Tax Credits (L I H TC ), which are compe11vely aw arded through the
M innesota H ousing F inance A gency (M N H ous ing) annually.
O n J uly 11, 2022, the E DA approved an op1on agreement with P roject for P ride in L iving (P P L) and a
resolu1on s uppor1ng the us e of T I F for the first 60-unit apartment project within the O pportunity S ite on
E DA -owned land. This s ite is pla<ed as Lot 1, Block 4, O pportunity S ite A ddi1on. D emonstra1ng site
control and C ity financial support w ere necessary for P P L to claim points in its applica1on to M N H ous ing
for L I H TC.
P P L w as not selected for funding in last year ’s round but intends to apply again for tax credits this year. The
reques t to M N hous ing will again be for the firs t 60 unit building within the O pportunity S ite. P P L will als o
begin reques 1ng other grant funding for a s econd 70-unit building w ithin the O pportunity S ite.
To submit a compe11ve applica1on, P P L w ill again need to show that they have site control and financial
support from the C ity. This will require a revised op1on agreement extending the deadline for acquisi1on of
L ot 1. I n addi1on, P P L is reques1ng an op1on agreement for its second building on lot 2, Block 4,
O pportunity S ite A ddi1on. I ncluding the L ot 2 op1on agreement w ill be helpful in s ecuring other grant
funding as well as for a future L H I TC applica1on. P P L is als o reques1ng an updated res olu1on of support
for the use of tax increment financing (T I F ) for the first 60-unit building, subject to certain condi1ons, and
as s uming P P L can obtain tax credits .
A pproval of the O p1on A greements does not cons1tute approval of the projects. The developer w ould s 1ll
be required to s ubmit a full and complete land use applica1on for formal review and approval by the City
prior to being able to exercis e the O p1on A greement.
A n op1on agreement and res olu1on of T I F s upport are neces s ary as part of the developer ’s applica1on to
M N H ous ing for tax credits for the project. D emons tra1ng s ite control and financial support allow P P L to
claim points in the applica1on process that make their project more compe11ve for funding.
S upport of TI F Request
The developer has made a request to the E DA to provide T I F for its firs t 60-unit building on L ot 1, which
would fill a financial gap in the project. Ehlers, the C ity's public financing consultant, has review ed the
reques t and prepared a resolu1on based on their ini1al asses s ment of the projects need. The res olu1on
(a<ached), would provide for a le<er of support for the project, indica1ng the City's w illingnes s to provide
tax increment financing s hould the project be aw arded with tax credits from M N H ousing, and provided the
project s a1s fies all condi1ons required by s tate law as it pertains to the us e of public subsidy. The le<er of
support is required as part of the developer ’s applica1on to M N H ous ing for L I H TC.
Ehlers has performed a financial analysis of the project and iden1fied an amount of tax increment
financing, combined w ith a land w rite-dow n to $1, that w ould be needed to make the project financially
feasible. Based on Ehlers ' analysis of the project, project need, and available increment, they have indicated
that the project w ould s upport tax increment financing in an amount not to exceed $340,000, payable over
19 years.
O pon A greement
The O p1on A greements provide the developer w ith exclusive rights and an op1on to purchas e the
proper1es during the op1on period. The op1on period would go into effect at the signing of the
agreements and remain in place un1l 60 days follow ing the developer receiving M N H ousing financing or
J anuary 1, 2026, w hichever occurs firs t.
The op1on agreements also provide the developer w ith right of entry to the property and 1me to complete
their due diligence, including obtaining land us e approvals and rez oning of the property, as well as obtain
financing and T I F.
The developer is reques 1ng a land w rite dow n on the purchase price to $1, which will provide them
addi1onal points on their L I H TC applica1on and make the project more compe11ve. This contribu1on to
the project by the E DA will aw ard addi1onal points to the project on its M N H ous ing tax credit applica1on.
This project is unique from pas t affordable developments the C ity has s upported in that the developer is
seeking to construct larger 3 and 4 bedroom units and to s et as ide a larger percentage of units at a much
more deeply affordable rate at 30% and 50% A M I . This creates a larger gap in the project and requires
addi1onal public s ubs idy.
B udget I ssues:
This item w ill have no immediate effect on the budget.
I nclusive C ommunity Engagement:
A nracist/Equity Policy Effect:
S trategic Priories and Values:
Resident Economic S tability, Targeted Redevelopment
AT TA C H M E N TS :
D escrip1on U pload D ate Type
O p1on A greement Lot 1 6/21/2023 Exhibit
O p1on A greement Lot 2 6/21/2023 Exhibit
Res olu1on S uppor1ng T I F for Lot 1 6/21/2023 Resolu1on Le<er
Res olu1on suppor1ng op1on agreements 6/21/2023 Resolu1on Le<er
O pt site phase 1 map 6/21/2023 Backup M aterial
1
BR291\386\808486.v3
OPTION AGREEMENT
THIS OPTION AGREEMENT (this “Agreement”) is made and entered into as of this ____
day of ____________, 2023 (the “Effective Date”), by and between the Economic Development
Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of
Minnesota (the “Seller”), and Project for Pride in Living, Inc., a Minnesota nonprofit corporation
(the “Buyer”) (together with the Seller and the Buyer referred to herein as the “Parties” or
individually as a “Party”).
RECITALS
A. The Buyer intends to purchase the parcel legally described on Exhibit A attached
hereto and hereby made a part hereof (the “Option Property”) from the Seller and to develop the
Option Property into a multi-story, approximately 60-unit apartment building with at least 40% of the
units occupied or held for occupancy by persons and families whose incomes do not exceed 60% of
the area median income, and underground and surface parking stalls (the “Development”); and
B. The Seller wishes to grant the Buyer an option to acquire the Option Property, under
the terms and conditions hereunder; and
C. The Seller believes that the development of the Option Property is vital and is in the
best interests of the Seller and City of Brooklyn Center, Minnesota (the “City”), will result in
preservation and enhancement of their tax base, provide additional affordable housing options in the
City, and is in accordance with the public purpose and provisions of the applicable state and local
laws and requirements under which the Development will be undertaken.
NOW, THEREFORE, in consideration of mutual covenants set forth in this Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Seller and the Buyer agree as follows:
Terms of the Agreement
2
BR291\386\808486.v3
1. Recitals. The recitals as set forth above are hereby incorporated into this
Agreement.
2. The Option. The Seller hereby grants to the Buyer the exclusive right and option
to purchase the Option Property, during the Option Period defined below, subject to the conditions
set forth below (the “Option”).
3. Option Payment. Within five business days after the date hereof, the Buyer shall
pay and deliver to Commercial Partners Title, located at 200 S. Sixth Street, Suite 1300,
Minneapolis, MN 55402 (the “Title Company”), the sum of Two Thousand Five Hundred and
No/100 dollars ($2,500), which shall constitute the option payment (the “Option Payment”)
hereunder. The Option Payment shall be refundable if, at the end of the Option Period (as defined
below), the contingencies set forth in either Section 13(c)(ii) or 13(c)(iii) are not satisfied. In the
event that the Buyer purchases the Option Property pursuant to this Agreement, the Option
Payment shall be credited against the Purchase Price payable for the Option Property as set forth
in Section 6 herein. In the event the Buyer does not exercise the Option or Closing (as defined
below) does not occur for any reason whatsoever other than the Seller’s default hereunder or failure
of the contingencies set forth in Sections 13(c)(ii) or 13(c)(iii) to be satisfied, the Option Payment
shall be retained by the Seller as consideration for granting the Option.
4. Option Period.
a. The period during which the Option may be exercised by the Buyer (the
“Option Period”) shall commence upon the Effective Date of this Agreement
and shall expire on the earlier of 60 days after the Buyer receives an allocation
of tax credits for the Development the Minnesota Housing Finance Agency
from (“MHFA”) or January 1, 2026 (the “Expiration Date”). During the
Option Period, the Seller agrees it will not advertise, list, negotiate for the sale
of or sell the Option Property to a third party.
b. If the Buyer does not timely exercise the Option, the Option shall lapse, and the
Option Payment shall be applied as provided in Section 3 herein and the Buyer
shall have no further rights with respect to the Option Property.
5. Exercise of Option. This Option shall be deemed exercised if, within the Option
Period, the Buyer gives written notice to the Seller of the Buyer’s intent to exercise the Option and
the Buyer will deposit with the Title Company for the benefit of the Seller the sum of Ten
Thousand and No/100 dollars ($10,000.00), as earnest money (“Earnest Money”). The Earnest
Money shall become nonrefundable at the end of the Due Diligence Period (defined below). In the
event that Seller breaches the terms of this Agreement, the Seller shall refund the Earnest Money
to the Buyer. Nothing in this Agreement shall entitle the Buyer to make any claim against the
Seller or the City for any damages whatsoever and the Buyer’s remedies are strictly limited to the
foregoing. Nothing in this Agreement shall be construed as a limitation of or waiver by the Seller
of any immunities, defenses, or other limitations on liability to which the Seller is entitled by law.
6. Purchase Price. The total purchase price for the Option Property shall be
3
BR291\386\808486.v3
$1,050,000, less a land write-down in the amount of up to $1,050,000 as set forth in the Buyer’s
HTC-1 Workbook submitted to MHFA (the “Purchase Price”). The Purchase Price less the
Earnest Money and the Option Payment shall be paid to the Seller from the Buyer on the Closing
Date.
7. Closing. Subject to the terms of this Agreement, the closing of the purchase and
sale of the Option Property contemplated by this Agreement (the “Closing”) shall occur at the
office of the Title Company, or at another location mutually agreed upon by the Parties, on the
date 30 days after the expiration of the Due Diligence Period or such other date as agreed to by the
Parties in writing (the “Closing Date”).
8. Due Diligence Investigation. Commencing on the date that the Buyer exercises this
Option, the Buyer, at its sole cost and expense, shall have a due diligence period of 180 days (“Due
Diligence Period”) to make all such investigations as the Buyer, in its sole and absolute discretion,
deems reasonable and necessary in determining the suitability of the Option Property for the
Buyer’s needs including:
a. To examine and inspect the Option Property, to review the Due Diligence
Documents, to conduct feasibility studies with regard to the ownership and
operation of the Option Property, including, but not limited to, environmental
reviews, soil condition testing, surveying, engineering studies, appraisals and
any other physical inspections of the Option Property as determined by the
Buyer, and to investigate all physical aspects of the Option Property, and to
review all other due diligence matters related to the Option Property. The Buyer
may enter upon the Option Property to inspect the same, and may conduct tests
and examinations with regard thereto, provided that the Buyer’s activities do
not unreasonably interfere with the ongoing operation of the Option Property.
The Buyer shall promptly restore the Option Property to substantially the same
condition in which it existed immediately prior to any physical tests conducted
by or on behalf of the Buyer.
b. To investigate all zoning, code and governmental regulations or requirements
in place at the Option Property, and to obtain all land use and rezoning
approvals and permits determined necessary by the Buyer for the Buyer’s
intended development and use of the Option Property, including but not limited
to all Development Approvals defined herein.
c. To secure funding for the purchase and development of the Option Property on
terms acceptable to the Buyer, in the Buyer’s sole discretion. The Parties
contemplate that such funding may include, without limitation, one or more of
the following:
i. MHFA Affordable Housing Tax Credits;
ii. Tax Increment Financing assistance from the Seller;
iii. Commercial loans for the purchase and/or development of the Option
Property.
4
BR291\386\808486.v3
d. To obtain, at the Buyer’s sole cost, an appraisal of the Option Property that is
satisfactory to the Buyer and all of the Buyer’s funding sources.
e. The Buyer shall have until the last day of the Due Diligence Period to provide
written notice to the Seller of the Buyer’s intention to terminate this Agreement
for any reason. If the Buyer terminates this Agreement within the Due
Diligence Period, the transactions contemplated herein shall be considered
terminated and the Earnest Money will be returned immediately to the Buyer.
9. Right of Entry. During the Due Diligence Period, the Buyer shall have the right to
enter upon the Option Property for the purpose of taking soil tests and borings, making surveys
and maps, and performing investigative work, including environmental testing and assessment, as
the Buyer may deem necessary; provided, however, the Buyer shall indemnify, defend, and hold
the Seller harmless from any mechanics’ liens or claims arising out of such investigative work by
the Buyer. The Buyer may assign this right to its agents, employees, or contractors at its sole
discretion. Nothing in this Agreement shall be deemed a waiver of defenses or limitations
available to the Seller under Minnesota Statutes Chapter 466.
a. In consideration for such right of entry, the Buyer agrees to:
i. Notify the Seller at least 48 hours in advance of the date and time that
the Buyer, its agents, employees, or contractors, will enter the Option
Property for the purpose for the entry, in order to permit the Seller to be
present during the time any work is being done by the Buyer, its agents,
employees, or contractors;
ii. Provide to the Seller a copy of all test results and reports prepared by
the Buyer or its consultants evaluating the conditions present on the
Option Property, as soon as reasonably possible following final
completion thereof;
iii. Dispose of all solid waste generated during the course of the Buyer’s
sampling activities and other work on the Option Property in accordance
with applicable federal, state and local laws, rules and regulations;
iv. Coordinate activities with the Seller so as to avoid unnecessary
disruption to or interference with the Seller’s use of the Option Property;
v. Do no unnecessary damage to the Option Property and restore the
Option Property to substantially the same condition as the condition in
which it was found by the Buyer at the time of entry by the Buyer, its
agents, employees, or contractors; and
vi. Hold the Seller harmless from and indemnify and defend the Seller from
any and all claims, damages, judgments or obligations, including the
cost of defense of suit, arising out of damage to the Option Property or
arising out of injury to anyone incurred or alleged to have been incurred
in connection with or as a result of any work done pursuant to this right
5
BR291\386\808486.v3
of entry, or as a result of the intentional torts or negligence of the Buyer,
its agents, employees, or contractors.
10. Title Review and Objections. Within 15 days after exercising the Option, the Seller
shall obtain and provide a copy to the Buyer a commitment for an ALTA owner’s title insurance
policy which shall be periodically updated in accordance with the Development Documents as
subsequently defined herein. Within 30 days after receipt of the title commitment, the Buyer shall
notify the Seller in writing of any objections to title, or the objections shall be deemed waived. If
any objections are so made, the Seller may be allowed until the Closing Date to cure such
objections and make the title to the Option Property good and marketable of record in the Seller.
Notwithstanding the foregoing, the Seller shall have no obligation to cure any title objections. If a
timely objection has been made by the Buyer pursuant to this Section and title to the Option
Property remains unmarketable on the Closing Date, the Buyer, as its sole and exclusive remedy,
may either: (A) terminate this Agreement by giving written notice to the Seller; or (B) elect to
accept the title in its unmarketable condition and without reduction of the Purchase Price by giving
written notice to the Seller.
11. Preliminary Plat & Final Plat. The Buyer, at the Buyer’s expense, shall obtain
within 60 days of exercising the Option, a preliminary plat of the Option Property prepared by a
licensed land surveyor (the “Preliminary Plat”). The Buyer, at the Buyer’s sole expense, shall
comply with all subdivision processes as required by the City Code of the City in order to
accomplish the platting of the Option Property.
12. Conveyance Subject to Right of Re-entry. The Seller’s conveyance of the Option
Property to the Buyer pursuant to this Agreement shall be made in the form of a quit claim deed
(the “Deed”). The Deed shall include a right of re-entry for breach of a condition subsequent in
favor of the Seller (the “Right of Re-entry”). The condition subsequent shall be determined by
the Seller in accordance with Minnesota Statutes Section 469.105 and set forth in the Deed
conveying the Option Property to the Buyer in the form attached to the Development Agreement
(as defined below). If the Buyer breaches such condition subsequent, the Buyer shall re-convey
the Option Property back to the Seller. If the Buyer fails to re-convey the Option Property to the
Seller, the Seller may elect to exercise its right of reentry by commencing an action in Hennepin
County District Court to establish the breach of the condition subsequent. If the Seller establishes
a breach of the condition subsequent, title to and the right to possession of the Option Property and
title to all improvements located thereon reverts to the Seller, and the Buyer is not entitled to any
compensation from the Seller for the Option Property or the value of any improvements the Buyer
has made to the Option Property. The Buyer must record any certificate of completion or
certificate of release of the Right of Re-entry in the proper County land records at its expense.
13. Contingencies.
a. Buyer’s Contingencies. If the Buyer exercises the Option, the Buyer’s
obligation to purchase the Option Property shall be contingent on the following:
i. By the end of the Due Diligence Period, the Buyer shall have
determined, in its sole and absolute discretion, that it is satisfied with
the results and matters disclosed by the Buyer’s investigation of the
6
BR291\386\808486.v3
Option Property pursuant to Section 9 of this Agreement.
ii. By the Closing Date, the Buyer shall have obtained, or caused to be
obtained, in a timely manner, all required permits, licenses and
approvals, including without limitation zoning and land use approvals,
final plat approval, and all other approvals which must be obtained for
the Development.
iii. By the Closing Date, the Buyer shall have obtained approvals from the
Seller and the City, following a duly noticed public hearing and the
satisfaction of all other conditions required by Minnesota law, of the use
of a portion of the tax increments from Tax Increment Financing District
No. 7 (Redevelopment District) derived from the Option Property
therein.
iv. By the Closing Date, the Buyer shall have obtained all necessary
financing for the Development.
v. By the Closing Date, the condition of title shall be satisfactory to the
Buyer following the Buyer’s examination of title as provided herein.
b. The contingencies set forth above are for the benefit of the Buyer and may be
waived by the Buyer in the Buyer’s sole discretion. Notwithstanding any other
provision in this Agreement, a waiver of a contingency must be in writing to be
effective. At the end of the Due Diligence Period, the Buyer will give written
notice to the Seller of the contingencies that have been waived, satisfied, or
neither waived nor satisfied.
c. Seller’s Contingencies. If the Buyer exercises the Option, the Seller’s
obligation to convey the Option Property shall be contingent on the following:
i. By the Closing Date, the Buyer shall have obtained, or cause to be
obtained, in a timely manner and at its sole and absolute expense, all
required permits, licenses and approvals, and shall have met, in a timely
manner, all requirements of all applicable local, state, and federal laws
and regulations which must be obtained or met for the Development
including without limitation a building permit, any needed variances,
final plat or subdivision approval, and zoning and land use approvals;
ii. The Buyer shall have obtained approval from the Seller of the sale of
the Option Property pursuant to this Agreement following a duly noticed
public hearing and the satisfaction of all other conditions required by
Minnesota law;
iii. By the Closing Date, the Buyer shall have obtained approvals from the
Seller and the City, following a duly noticed public hearing and the
satisfaction of all other conditions required by Minnesota law, of the use
of a portion of the tax increments from Tax Increment Financing District
7
BR291\386\808486.v3
No. 7 (Redevelopment District) derived from the Option Property
therein;
iv. The Buyer and the Seller shall have negotiated and mutually agreed to,
the Board of Commissioners of the EDA shall have approved following
the satisfaction of all conditions required by Minnesota law, and the
Seller and the Buyer shall have executed, effective not later than the
Closing Date, a Development Agreement (the “Development
Agreement”), providing, among other things, for (i) the platting of the
Option Property including, but not limited to, the preliminary plat, final
plat, and site plan; (ii) the construction of the Development by the Buyer
in accordance with plans, specifications and a timeline approved by the
Seller, (iii) the use of up to 90% of the tax increment from Tax
Increment Financing District No. 7 (Redevelopment District) derived
from the minimum improvements on the Option Property for a period
of up to 19 years to reimburse the Buyer for a portion of the costs of
constructing the Development on the Option Property pursuant to a pay-
as-you-go tax increment revenue note, bearing simple, non-
compounding interest at a rate per annum of up to the lesser of 5.125
percent or the rate of interest on the first lien mortgage financing for the
minimum improvements for the Development (the “PAYGO Note”) in
the amount of up to $340,000 subject to a final determination in
accordance with applicable law, and (iv) the terms and conditions of the
Right of Re-entry in accordance with Section 12 and the form of the
Deed to be executed and delivered by the Seller at closing and
containing the terms of the Right of Re-entry; and any documents
ancillary thereto (collectively, the “Development Documents”);
v. The Buyer shall have performed all of the obligations required to be
performed by the Buyer under this Agreement or the Development
Documents as of the Closing Date and any further contingencies to
Closing set forth in such Development Documents shall have been
satisfied as provided therein;
vi. The Buyer shall have delivered to the Seller all of the Buyer’s
Documents described in Section 19.
vii. The Buyer shall have submitted the construction plans for the
Development to the Seller and the City, and the Seller and the City shall
have approved the construction plans pursuant to the Development
Documents;
viii. By the Closing Date, the Buyer shall have obtained and provided to the
Seller evidence of all necessary financing for the Development; and
ix. The Seller shall have determined that the Development to be undertaken
by the Buyer on the Option Property is in conformance with this
8
BR291\386\808486.v3
Agreement and the development objectives set forth in resolutions of
the City and the Seller authorizing use of a portion of the tax increments
from Tax Increment Financing District No. 7 (Redevelopment District)
derived from the Option Property therein and the Development
Documents.
d. The contingencies set forth in Section 13(c) are for the benefit of the Seller and
may be waived only by the Seller in its sole and absolute discretion.
Notwithstanding any other provision in this Agreement, a waiver of a
contingency must be in writing to be effective. At the end of the Due Diligence
Period, the Seller will give written notice to the Buyer of the contingencies that
have been waived, satisfied, or neither waived nor satisfied.
e. Seller’s and Buyer’s Options. In the event that any of the foregoing
contingencies fail to be satisfied on or before the Closing Date:
i. the applicable party may terminate this Agreement, and the Buyer and
the Seller shall execute and deliver to each other documentation
effecting the termination of this Agreement and the Seller shall return
the Earnest Money to the Buyer; or
ii. the applicable party may waive such failure and proceed to Closing;
provided that the contingencies in Section 13(a) are solely for the benefit
of the Buyer and may be waived only by the Buyer as provided in
Section 13 (b) and the contingencies in Section 13(c) are solely for the
benefit of the Seller and may be waived only by the Seller as provided
in Section 13(d); or
iii. The Buyer and the Seller may mutually agree to extend the Closing
Date.
f. If Closing does not occur due to the failure of any of the above contingencies
which is not waived by the applicable party, the Seller shall be entitled to retain
the Option Payment, except as otherwise provided in Section 3 of this
Agreement.
g. If the above contingencies are satisfied at the end of the Due Diligence Period
or the applicable party elects to waive any unsatisfied contingencies and
proceed to Closing, then the Earnest Money shall become non-refundable to the
Buyer except in the event of the Seller’s default.
14. Real Estate Taxes and Special Assessments. The Seller shall not be responsible for
the payment of any real estate taxes due or special assessments due with respect to the Option
Property. The Buyer shall be responsible for all real estate taxes special assessments due with
respect to the Option Property which have not been paid prior to Closing.
15. Representations and Warranties of the Seller. The Option Property is sold AS-IS.
Except as provided herein, the Seller makes no representations or warranties regarding the
9
BR291\386\808486.v3
condition of the Option Property, its use, or the marketability of its title. The Buyer shall be
satisfied solely on the basis of its own investigation. Notwithstanding the foregoing, the Seller
represents and warrants to the Buyer:
a. Unrecorded Agreements. To the Seller’s knowledge, there are no unrecorded
agreements, undertakings or restrictions which affect the Option Property.
b. Leases. There are no leases or possessory rights of others regarding the Option
Property.
c. No Default Notice. The Seller has not received notice of a default or breach of
any agreement related to the Option Property and is not aware of any facts that
would result in the Seller being in default or breach of any such agreement.
d. Due Diligence Documents. The Due Diligence Documents delivered or to be
delivered to the Buyer hereunder are to the Seller’s actual knowledge correct
and complete and, to the Seller’s actual knowledge, do not contain any false
information.
e. Operations. The Seller has not received any notice of any violation of any laws,
ordinances, or regulations relating to the Option Property.
f. Condition. To Seller’s actual knowledge, the Option Property complies with
all applicable laws, ordinances, regulations, permits, and any applicable
restrictive covenants.
g. FIRPTA. The Seller is not a “foreign person,” “foreign partnership,” “foreign
trust,” or “foreign estate,” as those terms are defined in Internal Revenue Code
Section 1445 and the regulations promulgated thereunder.
h. No Proceedings. No legal or administrative proceeding is pending or, to the
Seller’s actual knowledge, threatened (i) which would adversely affect the
Seller’s right to convey the Option Property to the Buyer as contemplated in
this Agreement, or (ii) affecting the Option Property. There are no
condemnation or eminent domain proceedings pending or, to the Seller’s
knowledge, threatened with respect to the Option Property.
i. Private Sewage Systems; Wells. There are no private sewage systems or wells
of any kind located on the Option Property. Sewage generated at the Option
Property goes to a facility permitted by the Minnesota Pollution Control
Agency.
j. Use of Property. To the Seller’s actual knowledge, no methamphetamine
production has occurred on the Option Property.
k. Unpaid Labor and Materials. The Seller is not indebted for labor or material
that might give rise to the filing of notice of mechanic’s lien against any portion
of the Option Property.
10
BR291\386\808486.v3
l. The obligations of the Buyer under this Agreement are contingent upon the
representations and warranties of the Seller contained in this Agreement being
true as of the Effective Date and on the Closing Date as if made on the Closing
Date. Each of the foregoing representations and warranties shall be deemed
remade as of the Closing Date and, as so remade, shall survive the Closing.
16. Due Diligence Documents. Within 10 days after the Effective Date, the Seller shall
deliver to the Buyer copies of the documents set forth on Exhibit B attached hereto and
incorporated herein (the “Due Diligence Documents”).
17. Closing Costs.
a. The Buyer shall pay all costs of the preparation of a title commitment, including
the abstracting fees, if required by the title company and all recording fees and
charges related to the filing of any instrument required to make title marketable.
The Buyer shall also pay the cost of obtaining any title evidence desired by
Buyer, including a title commitment, the fees for standard searches with respect
to the Seller and the Property, all premiums required for issuance of a title
insurance policy any survey costs and all Closing fees charged by the title
company and any escrow fees charged by any escrow agent engaged by the
parties in connection with this Agreement.
b. Buyer shall also pay the following costs: (1) all costs for obtaining government
approvals that may be required in order to close on the Property or as required
for the Buyer’s intended use of the Property; (2) the cost of preparation of any
necessary platting or other subdivision documents, (3) the filing fee to record
the deed, (4) the premium for any owner’s or lender’s title insurance policies
obtained by or for the benefit of Buyer, (5) Mortgage Registration Tax, (6) any
state deed tax, conservation fee or other federal, state or local documentary or
revenue stamps or transfer tax with respect to the Deed to be delivered by the
Sellers; recording fees and charges related to the filing of the Deed; (7) Buyer’s
attorney’s fees; (8) the Seller’s legal, accounting fees and other out of pocket
costs incurred in connection with this Agreement and the Development
Documents as further provided in Section 25 hereof and in the Development
Documents; and (9) all other costs as outlined in the Development Documents
entered into between the Parties.
18. Seller’s Closing Documents. At Closing, the Seller shall execute and deliver to the
Buyer the following documents (collectively, the “Seller’s Closing Documents”):
a. A Quit Claim Deed conveying the Option Property to the Buyer.
b. A closing statement prepared by the Title Company to be executed by the Seller,
Buyer, and the Title Company at the Closing that accurately describes the
economic terms of the transaction described this Agreement.
c. An Assignment of any Due Diligence Documents that are consented to and
approved by the Buyer, and miscellaneous documents conveying the Seller’s
11
BR291\386\808486.v3
interest to the Buyer together with the consent of all parties having a right to
consent to such assignment.
d. A non-foreign affidavit, properly executed, containing such information as is
required by Code Section 1445(b)(2) and the regulations promulgated
thereunder.
e. A Designation Agreement designating the “reporting person” for purposes of
completing Internal Revenue Service (“IRS”) Form 1099 and, if applicable, IRS
Form 8594.
19. Documents to be Delivered by the Buyer. The Buyer agrees to deliver to the Seller
the following documents (the “Buyer’s Documents”), duly executed as appropriate, at Closing:
a. The Purchase Price.
b. Such affidavits of Buyer, Certificates of Value or other documents as may be
reasonably required in order to complete the transaction contemplated by this
Agreement.
c. The final plat of the Option Property as approved by the Seller and the City, to
be recorded contemporaneously with Closing contemplated herein.
d. Any documentary evidence required to satisfy the contingencies set forth
herein.
e. The Development Agreement and any documents required pursuant to the terms
of the Development Documents.
f. A minimum assessment agreement pursuant to which the Option Property and
the minimum improvements as defined by the Development Agreement will be
assessed based on a minimum market value of:
i. $2,925,000 as of January 2, 2026; and
ii. $11,700,000 as of January 2, 2027.
g. Such other documents as shall be required to carry out the intent of this
Agreement.
20. Casualty or Condemnation. If before the recording of the Deed any substantial
part of the Option Property is taken by condemnation (including a deed given in lieu thereof), the
Buyer shall have the option of (i) enforcing this Agreement (and in such event the insurance
proceeds or condemnation award shall belong to the Buyer) or (ii) canceling the Agreement by
written notice given within 30 days after the Buyer receives notice of such casualty or
condemnation from the Seller. If this Agreement is canceled under this Section, the Earnest Money
shall be returned to the Buyer, this Agreement shall be null and void, and the Parties’ obligations
hereunder shall be of no further force and effect.
12
BR291\386\808486.v3
21. Remedies. If either Party defaults under this Agreement, the non-defaulting party
shall have the right to terminate this Agreement by giving written notice to the defaulting party. If
the defaulting party fails to cure such default within 14 days of the date of such written notice, this
Agreement will terminate. The termination of this Agreement shall be the sole and absolute remedy
available to the non-defaulting Party for such default.
22. Commissions. Each party represents that it has not engaged any broker in
connection with the transactions contemplated by this Agreement and agrees to indemnify and
hold the other harmless from anyone claiming a commission/fee through them.
23. Notices. Any notices required herein shall be deemed given when sent in the U.S.
Mail, either registered or certified, return receipt requested, or by Federal Express or other
overnight delivery service requiring a signature upon receipt, to the parties at the following
addresses:
SELLER: Economic Development Authority of Brooklyn Center, Minnesota
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Attn: Executive Director
With a copy to: Jenny Boulton
Kennedy and Graven, Chartered
Fifth Street Towers
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
BUYER Project for Pride in Living
1035 East Franklin Avenue
Minneapolis, MN 55404
Attn: ___________________
With a copy to:
___________________________
___________________________
___________________________
24. Reimbursement of Costs. Upon execution of this Agreement by both parties, the
Buyer shall deposit with the Seller the sum of Ten Thousand Dollars ($10,000.00) to pay for the
Seller’s reasonable out-of-pocket legal, financial consultant, and administrative fees associated
with this transaction. Unexpended funds will be returned by the Seller to the Buyer and if,
additional funds are needed by the Seller to pay such expenses, the Buyer will deposit such
additional funds upon request by the Seller.
25. Survival. All representations, warranties, and indemnities set forth herein shall
survive the Closing, except as otherwise provided herein.
13
BR291\386\808486.v3
26. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Minnesota.
27. Assignment. The Buyer shall have the right to assign its interest to this Agreement
to an entity in which the Buyer has an ownership interest, is a member or is otherwise affiliated
with. The consent of the Seller shall be required if the Buyer assigns this Agreement to any third
party with which the Buyer has no connection.
28. Binding Effect. This Agreement is binding upon the Parties and their respective
permitted successors and assigns.
29. Construction. This Agreement shall not be construed more strictly against one
Party than the other, merely by virtue of the fact that it may have been prepared primarily by
counsel for one of the Parties, it being recognized that both the Buyer and the Seller have
contributed substantially and materially to the preparation of this Agreement.
30. Headings. The headings preceding the text of the sections and subsections hereof
are inserted solely for convenience of reference and shall not constitute a part of this Agreement,
nor shall they affect its meaning, construction, or effect.
31. Severability. The invalidity or unenforceability of any term or terms of this
Agreement shall not invalidate, make unenforceable or otherwise affect any other term of this
Agreement, and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted, and in such event, the remaining terms of this Agreement
shall remain in full force and effect.
32. Computation of Time. In computing any period of time pursuant to this Agreement,
the day of the act or event from which the designated period of time begins to run will not be
included. The last day of the period so computed will be included, unless it is a Saturday, Sunday,
or federal holiday, in which event the period runs until the end of the next day which is not a
Saturday, Sunday, or federal holiday.
33. Time of the Essence. All times, wherever specified herein for the performance by
the Seller or the Buyer of their respective obligations hereunder, are of the essence of this
Agreement.
34. Complete Agreement. This instrument and any exhibits, schedules or addendums
attached hereto contain the entire Agreement of the Parties regarding the subject matter hereof,
and supersedes all prior negotiations, agreements, or understandings, whether oral or in writing.
This Agreement may not be changed orally but only by an Agreement in writing signed by the
Parties.
35. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute an original but all of which, taken together, shall constitute but one
and the same instrument.
14
BR291\386\808486.v3
IN WITNESS WHEREOF, the undersigned have signed this Option Agreement as of the day and
year first written above.
SELLER:
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
By: ______________________________
April Graves
Its: President
By: ______________________________
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledgment before me this ____ day of _____________,
2023, by April Graves and ______________, the President and Executive Director, respectively
of the Economic Development Authority of Brooklyn Center, Minnesota, a public body
corporate and politic in the State of Minnesota on behalf of the Authority.
________________________________
Notary Public
15
BR291\386\808486.v3
BUYER:
PROJECT FOR PRIDE IN LIVING, INC.
By:
Its: ______________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledgment before me this ____ day of _____________,
2023, by ___________________, the ________________ of Project for Pride in Living, Inc., a
Minnesota nonprofit corporation on behalf of the company.
________________________________
Notary Public
This document was drafted by:
Kennedy & Graven, Chartered (JSB)
150 South 5th Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
A-1
BR291\386\808486.v3
EXHIBIT A
LEGAL DESCRIPTIONS OF THE OPTION PROPERTY
A portion of a parcel of land at the northeast intersection of County Road 10 and Shingle Creek
Parkway in Brooklyn Center, Minnesota currently identified as Parcel ID number 02-118-21-24-
0019 to be re-platted as:
Lot 1, Block 4 Opportunity Site Addition
but subject to the final plat thereof.
B-1
BR291\386\808486.v3
EXHIBIT B
Due Diligence Documents
Copies of the following in the Seller’s possession and related to the Option Property:
1. Copies of real estate tax bills and special assessments (if any), and payment status for the
preceding three full calendar years;
2. Statements of any and all expenses related to the Option Property for the preceding three
full calendar years;
3. Copies of all agreements affecting the Option Property;
4. All studies and reports in the possession of the Seller relating to environmental status,
soil tests, and any other information regarding the environmental and soil conditions;
5. Copies of any written citations from any governmental entities pertaining to the Option
Property including those pertaining to any uncured violations of any applicable laws and
codes or compliance with the same;
6. All site plans, construction documents, engineer reports, and property assessments
performed to date for the Option Property;
7. Any existing surveys of the Option Property; and
8. All certificates of insurance relating to the Option Property and claims made in the last
three years.
1
BR291\386\883736.v1
OPTION AGREEMENT
THIS OPTION AGREEMENT (this “Agreement”) is made and entered into as of this ____
day of ____________, 2023 (the “Effective Date”), by and between the Economic Development
Authority of Brooklyn Center, Minnesota, a public body corporate and politic under the laws of
Minnesota (the “Seller”), and Project for Pride in Living, Inc., a Minnesota nonprofit corporation
(the “Buyer”) (together with the Seller and the Buyer referred to herein as the “Parties” or
individually as a “Party”).
RECITALS
A. The Buyer intends to purchase the parcel legally described on Exhibit A attached
hereto and hereby made a part hereof (the “Option Property”) from the Seller and to develop the
Option Property into a multi-story, approximately 70-unit apartment building with at least 40% of the
units occupied or held for occupancy by persons and families whose incomes do not exceed 60% of
the area median income, and underground and surface parking stalls (the “Development”); and
B. The Seller wishes to grant the Buyer an option to acquire the Option Property, under
the terms and conditions hereunder; and
C. The Seller believes that the development of the Option Property is vital and is in the
best interests of the Seller and City of Brooklyn Center, Minnesota (the “City”), will result in
preservation and enhancement of their tax base, provide additional affordable housing options in the
City, and is in accordance with the public purpose and provisions of the applicable state and local
laws and requirements under which the Development will be undertaken.
NOW, THEREFORE, in consideration of mutual covenants set forth in this Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Seller and the Buyer agree as follows:
Terms of the Agreement
2
BR291\386\883736.v1
1. Recitals. The recitals as set forth above are hereby incorporated into this
Agreement.
2. The Option. The Seller hereby grants to the Buyer the exclusive right and option
to purchase the Option Property, during the Option Period defined below, subject to the conditions
set forth below (the “Option”).
3. Option Payment. Within five business days after the date hereof, the Buyer shall
pay and deliver to Commercial Partners Title, located at 200 S. Sixth Street, Suite 1300,
Minneapolis, MN 55402 (the “Title Company”), the sum of Two Thousand Five Hundred and
No/100 dollars ($2,500), which shall constitute the option payment (the “Option Payment”)
hereunder. The Option Payment shall be refundable if, at the end of the Option Period (as defined
below), the contingencies set forth in either Section 13(c)(ii) or 13(c)(iii) are not satisfied. In the
event that the Buyer purchases the Option Property pursuant to this Agreement, the Option
Payment shall be credited against the Purchase Price payable for the Option Property as set forth
in Section 6 herein. In the event the Buyer does not exercise the Option or Closing (as defined
below) does not occur for any reason whatsoever other than the Seller’s default hereunder or failure
of the contingencies set forth in Sections 13(c)(ii) or 13(c)(iii) to be satisfied, the Option Payment
shall be retained by the Seller as consideration for granting the Option.
4. Option Period.
a. The period during which the Option may be exercised by the Buyer (the
“Option Period”) shall commence upon the Effective Date of this Agreement
and shall expire on the earlier of 60 days after the Buyer receives an allocation
of tax credits for the Development the Minnesota Housing Finance Agency
from (“MHFA”) or January 1, 2026 (the “Expiration Date”). During the
Option Period, the Seller agrees it will not advertise, list, negotiate for the sale
of or sell the Option Property to a third party.
b. If the Buyer does not timely exercise the Option, the Option shall lapse, and the
Option Payment shall be applied as provided in Section 3 herein and the Buyer
shall have no further rights with respect to the Option Property.
5. Exercise of Option. This Option shall be deemed exercised if, within the Option
Period, the Buyer gives written notice to the Seller of the Buyer’s intent to exercise the Option and
the Buyer will deposit with the Title Company for the benefit of the Seller the sum of Ten
Thousand and No/100 dollars ($10,000.00), as earnest money (“Earnest Money”). The Earnest
Money shall become nonrefundable at the end of the Due Diligence Period (defined below). In the
event that Seller breaches the terms of this Agreement, the Seller shall refund the Earnest Money
to the Buyer. Nothing in this Agreement shall entitle the Buyer to make any claim against the
Seller or the City for any damages whatsoever and the Buyer’s remedies are strictly limited to the
foregoing. Nothing in this Agreement shall be construed as a limitation of or waiver by the Seller
of any immunities, defenses, or other limitations on liability to which the Seller is entitled by law.
6. Purchase Price. The total purchase price for the Option Property shall be
3
BR291\386\883736.v1
$________, less a land write-down in the amount of up to $________ as set forth in the Buyer’s
HTC-1 Workbook submitted to MHFA (the “Purchase Price”). The Purchase Price less the
Earnest Money and the Option Payment shall be paid to the Seller from the Buyer on the Closing
Date.
7. Closing. Subject to the terms of this Agreement, the closing of the purchase and
sale of the Option Property contemplated by this Agreement (the “Closing”) shall occur at the
office of the Title Company, or at another location mutually agreed upon by the Parties, on the
date 30 days after the expiration of the Due Diligence Period or such other date as agreed to by the
Parties in writing (the “Closing Date”).
8. Due Diligence Investigation. Commencing on the date that the Buyer exercises this
Option, the Buyer, at its sole cost and expense, shall have a due diligence period of 180 days (“Due
Diligence Period”) to make all such investigations as the Buyer, in its sole and absolute discretion,
deems reasonable and necessary in determining the suitability of the Option Property for the
Buyer’s needs including:
a. To examine and inspect the Option Property, to review the Due Diligence
Documents, to conduct feasibility studies with regard to the ownership and
operation of the Option Property, including, but not limited to, environmental
reviews, soil condition testing, surveying, engineering studies, appraisals and
any other physical inspections of the Option Property as determined by the
Buyer, and to investigate all physical aspects of the Option Property, and to
review all other due diligence matters related to the Option Property. The Buyer
may enter upon the Option Property to inspect the same, and may conduct tests
and examinations with regard thereto, provided that the Buyer’s activities do
not unreasonably interfere with the ongoing operation of the Option Property.
The Buyer shall promptly restore the Option Property to substantially the same
condition in which it existed immediately prior to any physical tests conducted
by or on behalf of the Buyer.
b. To investigate all zoning, code and governmental regulations or requirements
in place at the Option Property, and to obtain all land use and rezoning
approvals and permits determined necessary by the Buyer for the Buyer’s
intended development and use of the Option Property, including but not limited
to all Development Approvals defined herein.
c. To secure funding for the purchase and development of the Option Property on
terms acceptable to the Buyer, in the Buyer’s sole discretion. The Parties
contemplate that such funding may include, without limitation, one or more of
the following:
i. MHFA Affordable Housing Tax Credits;
ii. Tax Increment Financing assistance from the Seller;
iii. Commercial loans for the purchase and/or development of the Option
Property.
4
BR291\386\883736.v1
d. To obtain, at the Buyer’s sole cost, an appraisal of the Option Property that is
satisfactory to the Buyer and all of the Buyer’s funding sources.
e. The Buyer shall have until the last day of the Due Diligence Period to provide
written notice to the Seller of the Buyer’s intention to terminate this Agreement
for any reason. If the Buyer terminates this Agreement within the Due
Diligence Period, the transactions contemplated herein shall be considered
terminated and the Earnest Money will be returned immediately to the Buyer.
9. Right of Entry. During the Due Diligence Period, the Buyer shall have the right to
enter upon the Option Property for the purpose of taking soil tests and borings, making surveys
and maps, and performing investigative work, including environmental testing and assessment, as
the Buyer may deem necessary; provided, however, the Buyer shall indemnify, defend, and hold
the Seller harmless from any mechanics’ liens or claims arising out of such investigative work by
the Buyer. The Buyer may assign this right to its agents, employees, or contractors at its sole
discretion. Nothing in this Agreement shall be deemed a waiver of defenses or limitations
available to the Seller under Minnesota Statutes Chapter 466.
a. In consideration for such right of entry, the Buyer agrees to:
i. Notify the Seller at least 48 hours in advance of the date and time that
the Buyer, its agents, employees, or contractors, will enter the Option
Property for the purpose for the entry, in order to permit the Seller to be
present during the time any work is being done by the Buyer, its agents,
employees, or contractors;
ii. Provide to the Seller a copy of all test results and reports prepared by
the Buyer or its consultants evaluating the conditions present on the
Option Property, as soon as reasonably possible following final
completion thereof;
iii. Dispose of all solid waste generated during the course of the Buyer’s
sampling activities and other work on the Option Property in accordance
with applicable federal, state and local laws, rules and regulations;
iv. Coordinate activities with the Seller so as to avoid unnecessary
disruption to or interference with the Seller’s use of the Option Property;
v. Do no unnecessary damage to the Option Property and restore the
Option Property to substantially the same condition as the condition in
which it was found by the Buyer at the time of entry by the Buyer, its
agents, employees, or contractors; and
vi. Hold the Seller harmless from and indemnify and defend the Seller from
any and all claims, damages, judgments or obligations, including the
cost of defense of suit, arising out of damage to the Option Property or
arising out of injury to anyone incurred or alleged to have been incurred
in connection with or as a result of any work done pursuant to this right
5
BR291\386\883736.v1
of entry, or as a result of the intentional torts or negligence of the Buyer,
its agents, employees, or contractors.
10. Title Review and Objections. Within 15 days after exercising the Option, the Seller
shall obtain and provide a copy to the Buyer a commitment for an ALTA owner’s title insurance
policy which shall be periodically updated in accordance with the Development Documents as
subsequently defined herein. Within 30 days after receipt of the title commitment, the Buyer shall
notify the Seller in writing of any objections to title, or the objections shall be deemed waived. If
any objections are so made, the Seller may be allowed until the Closing Date to cure such
objections and make the title to the Option Property good and marketable of record in the Seller.
Notwithstanding the foregoing, the Seller shall have no obligation to cure any title objections. If a
timely objection has been made by the Buyer pursuant to this Section and title to the Option
Property remains unmarketable on the Closing Date, the Buyer, as its sole and exclusive remedy,
may either: (A) terminate this Agreement by giving written notice to the Seller; or (B) elect to
accept the title in its unmarketable condition and without reduction of the Purchase Price by giving
written notice to the Seller.
11. Preliminary Plat & Final Plat. The Buyer, at the Buyer’s expense, shall obtain
within 60 days of exercising the Option, a preliminary plat of the Option Property prepared by a
licensed land surveyor (the “Preliminary Plat”). The Buyer, at the Buyer’s sole expense, shall
comply with all subdivision processes as required by the City Code of the City in order to
accomplish the platting of the Option Property.
12. Conveyance Subject to Right of Re-entry. The Seller’s conveyance of the Option
Property to the Buyer pursuant to this Agreement shall be made in the form of a quit claim deed
(the “Deed”). The Deed shall include a right of re-entry for breach of a condition subsequent in
favor of the Seller (the “Right of Re-entry”). The condition subsequent shall be determined by
the Seller in accordance with Minnesota Statutes Section 469.105 and set forth in the Deed
conveying the Option Property to the Buyer in the form attached to the Development Agreement
(as defined below). If the Buyer breaches such condition subsequent, the Buyer shall re-convey
the Option Property back to the Seller. If the Buyer fails to re-convey the Option Property to the
Seller, the Seller may elect to exercise its right of reentry by commencing an action in Hennepin
County District Court to establish the breach of the condition subsequent. If the Seller establishes
a breach of the condition subsequent, title to and the right to possession of the Option Property and
title to all improvements located thereon reverts to the Seller, and the Buyer is not entitled to any
compensation from the Seller for the Option Property or the value of any improvements the Buyer
has made to the Option Property. The Buyer must record any certificate of completion or
certificate of release of the Right of Re-entry in the proper County land records at its expense.
13. Contingencies.
a. Buyer’s Contingencies. If the Buyer exercises the Option, the Buyer’s
obligation to purchase the Option Property shall be contingent on the following:
i. By the end of the Due Diligence Period, the Buyer shall have
determined, in its sole and absolute discretion, that it is satisfied with
the results and matters disclosed by the Buyer’s investigation of the
6
BR291\386\883736.v1
Option Property pursuant to Section 9 of this Agreement.
ii. By the Closing Date, the Buyer shall have obtained, or caused to be
obtained, in a timely manner, all required permits, licenses and
approvals, including without limitation zoning and land use approvals,
final plat approval, and all other approvals which must be obtained for
the Development.
iii. By the Closing Date, the Buyer shall have obtained approvals from the
Seller and the City, following a duly noticed public hearing and the
satisfaction of all other conditions required by Minnesota law, of the use
of a portion of the tax increments from Tax Increment Financing District
No. 7 (Redevelopment District) derived from the Option Property
therein.
iv. By the Closing Date, the Buyer shall have obtained all necessary
financing for the Development.
v. By the Closing Date, the condition of title shall be satisfactory to the
Buyer following the Buyer’s examination of title as provided herein.
b. The contingencies set forth above are for the benefit of the Buyer and may be
waived by the Buyer in the Buyer’s sole discretion. Notwithstanding any other
provision in this Agreement, a waiver of a contingency must be in writing to be
effective. At the end of the Due Diligence Period, the Buyer will give written
notice to the Seller of the contingencies that have been waived, satisfied, or
neither waived nor satisfied.
c. Seller’s Contingencies. If the Buyer exercises the Option, the Seller’s
obligation to convey the Option Property shall be contingent on the following:
i. By the Closing Date, the Buyer shall have obtained, or cause to be
obtained, in a timely manner and at its sole and absolute expense, all
required permits, licenses and approvals, and shall have met, in a timely
manner, all requirements of all applicable local, state, and federal laws
and regulations which must be obtained or met for the Development
including without limitation a building permit, any needed variances,
final plat or subdivision approval, and zoning and land use approvals;
ii. The Buyer shall have obtained approval from the Seller of the sale of
the Option Property pursuant to this Agreement following a duly noticed
public hearing and the satisfaction of all other conditions required by
Minnesota law;
iii. By the Closing Date, the Buyer shall have obtained approvals from the
Seller and the City, following a duly noticed public hearing and the
satisfaction of all other conditions required by Minnesota law, of the use
of a portion of the tax increments from Tax Increment Financing District
7
BR291\386\883736.v1
No. 7 (Redevelopment District) derived from the Option Property
therein;
iv. The Buyer and the Seller shall have negotiated and mutually agreed to,
the Board of Commissioners of the EDA shall have approved following
the satisfaction of all conditions required by Minnesota law, and the
Seller and the Buyer shall have executed, effective not later than the
Closing Date, a Development Agreement (the “Development
Agreement”), providing, among other things, for (i) the platting of the
Option Property including, but not limited to, the preliminary plat, final
plat, and site plan; (ii) the construction of the Development by the Buyer
in accordance with plans, specifications and a timeline approved by the
Seller, (iii) the use of up to 90% of the tax increment from Tax
Increment Financing District No. 7 (Redevelopment District) derived
from the minimum improvements on the Option Property for a period
of up to __ years to reimburse the Buyer for a portion of the costs of
constructing the Development on the Option Property pursuant to a pay-
as-you-go tax increment revenue note, bearing simple, non-
compounding interest at a rate per annum of up to the lesser of ____
percent or the rate of interest on the first lien mortgage financing for the
minimum improvements for the Development (the “PAYGO Note”) in
the amount of up to $_______ subject to a final determination in
accordance with applicable law, and (iv) the terms and conditions of the
Right of Re-entry in accordance with Section 12 and the form of the
Deed to be executed and delivered by the Seller at closing and
containing the terms of the Right of Re-entry; and any documents
ancillary thereto (collectively, the “Development Documents”);
v. The Buyer shall have performed all of the obligations required to be
performed by the Buyer under this Agreement or the Development
Documents as of the Closing Date and any further contingencies to
Closing set forth in such Development Documents shall have been
satisfied as provided therein;
vi. The Buyer shall have delivered to the Seller all of the Buyer’s
Documents described in Section 19.
vii. The Buyer shall have submitted the construction plans for the
Development to the Seller and the City, and the Seller and the City shall
have approved the construction plans pursuant to the Development
Documents;
viii. By the Closing Date, the Buyer shall have obtained and provided to the
Seller evidence of all necessary financing for the Development; and
ix. The Seller shall have determined that the Development to be undertaken
by the Buyer on the Option Property is in conformance with this
8
BR291\386\883736.v1
Agreement and the development objectives set forth in resolutions of
the City and the Seller authorizing use of a portion of the tax increments
from Tax Increment Financing District No. 7 (Redevelopment District)
derived from the Option Property therein and the Development
Documents.
d. The contingencies set forth in Section 13(c) are for the benefit of the Seller and
may be waived only by the Seller in its sole and absolute discretion.
Notwithstanding any other provision in this Agreement, a waiver of a
contingency must be in writing to be effective. At the end of the Due Diligence
Period, the Seller will give written notice to the Buyer of the contingencies that
have been waived, satisfied, or neither waived nor satisfied.
e. Seller’s and Buyer’s Options. In the event that any of the foregoing
contingencies fail to be satisfied on or before the Closing Date:
i. the applicable party may terminate this Agreement, and the Buyer and
the Seller shall execute and deliver to each other documentation
effecting the termination of this Agreement and the Seller shall return
the Earnest Money to the Buyer; or
ii. the applicable party may waive such failure and proceed to Closing;
provided that the contingencies in Section 13(a) are solely for the benefit
of the Buyer and may be waived only by the Buyer as provided in
Section 13 (b) and the contingencies in Section 13(c) are solely for the
benefit of the Seller and may be waived only by the Seller as provided
in Section 13(d); or
iii. The Buyer and the Seller may mutually agree to extend the Closing
Date.
f. If Closing does not occur due to the failure of any of the above contingencies
which is not waived by the applicable party, the Seller shall be entitled to retain
the Option Payment, except as otherwise provided in Section 3 of this
Agreement.
g. If the above contingencies are satisfied at the end of the Due Diligence Period
or the applicable party elects to waive any unsatisfied contingencies and
proceed to Closing, then the Earnest Money shall become non-refundable to the
Buyer except in the event of the Seller’s default.
14. Real Estate Taxes and Special Assessments. The Seller shall not be responsible for
the payment of any real estate taxes due or special assessments due with respect to the Option
Property. The Buyer shall be responsible for all real estate taxes special assessments due with
respect to the Option Property which have not been paid prior to Closing.
15. Representations and Warranties of the Seller. The Option Property is sold AS-IS.
Except as provided herein, the Seller makes no representations or warranties regarding the
9
BR291\386\883736.v1
condition of the Option Property, its use, or the marketability of its title. The Buyer shall be
satisfied solely on the basis of its own investigation. Notwithstanding the foregoing, the Seller
represents and warrants to the Buyer:
a. Unrecorded Agreements. To the Seller’s knowledge, there are no unrecorded
agreements, undertakings or restrictions which affect the Option Property.
b. Leases. There are no leases or possessory rights of others regarding the Option
Property.
c. No Default Notice. The Seller has not received notice of a default or breach of
any agreement related to the Option Property and is not aware of any facts that
would result in the Seller being in default or breach of any such agreement.
d. Due Diligence Documents. The Due Diligence Documents delivered or to be
delivered to the Buyer hereunder are to the Seller’s actual knowledge correct
and complete and, to the Seller’s actual knowledge, do not contain any false
information.
e. Operations. The Seller has not received any notice of any violation of any laws,
ordinances, or regulations relating to the Option Property.
f. Condition. To Seller’s actual knowledge, the Option Property complies with
all applicable laws, ordinances, regulations, permits, and any applicable
restrictive covenants.
g. FIRPTA. The Seller is not a “foreign person,” “foreign partnership,” “foreign
trust,” or “foreign estate,” as those terms are defined in Internal Revenue Code
Section 1445 and the regulations promulgated thereunder.
h. No Proceedings. No legal or administrative proceeding is pending or, to the
Seller’s actual knowledge, threatened (i) which would adversely affect the
Seller’s right to convey the Option Property to the Buyer as contemplated in
this Agreement, or (ii) affecting the Option Property. There are no
condemnation or eminent domain proceedings pending or, to the Seller’s
knowledge, threatened with respect to the Option Property.
i. Private Sewage Systems; Wells. There are no private sewage systems or wells
of any kind located on the Option Property. Sewage generated at the Option
Property goes to a facility permitted by the Minnesota Pollution Control
Agency.
j. Use of Property. To the Seller’s actual knowledge, no methamphetamine
production has occurred on the Option Property.
k. Unpaid Labor and Materials. The Seller is not indebted for labor or material
that might give rise to the filing of notice of mechanic’s lien against any portion
of the Option Property.
10
BR291\386\883736.v1
l. The obligations of the Buyer under this Agreement are contingent upon the
representations and warranties of the Seller contained in this Agreement being
true as of the Effective Date and on the Closing Date as if made on the Closing
Date. Each of the foregoing representations and warranties shall be deemed
remade as of the Closing Date and, as so remade, shall survive the Closing.
16. Due Diligence Documents. Within 10 days after the Effective Date, the Seller shall
deliver to the Buyer copies of the documents set forth on Exhibit B attached hereto and
incorporated herein (the “Due Diligence Documents”).
17. Closing Costs.
a. The Buyer shall pay all costs of the preparation of a title commitment, including
the abstracting fees, if required by the title company and all recording fees and
charges related to the filing of any instrument required to make title marketable.
The Buyer shall also pay the cost of obtaining any title evidence desired by
Buyer, including a title commitment, the fees for standard searches with respect
to the Seller and the Property, all premiums required for issuance of a title
insurance policy any survey costs and all Closing fees charged by the title
company and any escrow fees charged by any escrow agent engaged by the
parties in connection with this Agreement.
b. Buyer shall also pay the following costs: (1) all costs for obtaining government
approvals that may be required in order to close on the Property or as required
for the Buyer’s intended use of the Property; (2) the cost of preparation of any
necessary platting or other subdivision documents, (3) the filing fee to record
the deed, (4) the premium for any owner’s or lender’s title insurance policies
obtained by or for the benefit of Buyer, (5) Mortgage Registration Tax, (6) any
state deed tax, conservation fee or other federal, state or local documentary or
revenue stamps or transfer tax with respect to the Deed to be delivered by the
Sellers; recording fees and charges related to the filing of the Deed; (7) Buyer’s
attorney’s fees; (8) the Seller’s legal, accounting fees and other out of pocket
costs incurred in connection with this Agreement and the Development
Documents as further provided in Section 25 hereof and in the Development
Documents; and (9) all other costs as outlined in the Development Documents
entered into between the Parties.
18. Seller’s Closing Documents. At Closing, the Seller shall execute and deliver to the
Buyer the following documents (collectively, the “Seller’s Closing Documents”):
a. A Quit Claim Deed conveying the Option Property to the Buyer.
b. A closing statement prepared by the Title Company to be executed by the Seller,
Buyer, and the Title Company at the Closing that accurately describes the
economic terms of the transaction described this Agreement.
c. An Assignment of any Due Diligence Documents that are consented to and
approved by the Buyer, and miscellaneous documents conveying the Seller’s
11
BR291\386\883736.v1
interest to the Buyer together with the consent of all parties having a right to
consent to such assignment.
d. A non-foreign affidavit, properly executed, containing such information as is
required by Code Section 1445(b)(2) and the regulations promulgated
thereunder.
e. A Designation Agreement designating the “reporting person” for purposes of
completing Internal Revenue Service (“IRS”) Form 1099 and, if applicable, IRS
Form 8594.
19. Documents to be Delivered by the Buyer. The Buyer agrees to deliver to the Seller
the following documents (the “Buyer’s Documents”), duly executed as appropriate, at Closing:
a. The Purchase Price.
b. Such affidavits of Buyer, Certificates of Value or other documents as may be
reasonably required in order to complete the transaction contemplated by this
Agreement.
c. The final plat of the Option Property as approved by the Seller and the City, to
be recorded contemporaneously with Closing contemplated herein.
d. Any documentary evidence required to satisfy the contingencies set forth
herein.
e. The Development Agreement and any documents required pursuant to the terms
of the Development Documents.
f. A minimum assessment agreement pursuant to which the Option Property and
the minimum improvements as defined by the Development Agreement will be
assessed based on a minimum market value of:
i. $_________ as of January 2, 2026; and
ii. $_________ as of January 2, 2027.
g. Such other documents as shall be required to carry out the intent of this
Agreement.
20. Casualty or Condemnation. If before the recording of the Deed any substantial
part of the Option Property is taken by condemnation (including a deed given in lieu thereof), the
Buyer shall have the option of (i) enforcing this Agreement (and in such event the insurance
proceeds or condemnation award shall belong to the Buyer) or (ii) canceling the Agreement by
written notice given within 30 days after the Buyer receives notice of such casualty or
condemnation from the Seller. If this Agreement is canceled under this Section, the Earnest Money
shall be returned to the Buyer, this Agreement shall be null and void, and the Parties’ obligations
hereunder shall be of no further force and effect.
12
BR291\386\883736.v1
21. Remedies. If either Party defaults under this Agreement, the non-defaulting party
shall have the right to terminate this Agreement by giving written notice to the defaulting party. If
the defaulting party fails to cure such default within 14 days of the date of such written notice, this
Agreement will terminate. The termination of this Agreement shall be the sole and absolute remedy
available to the non-defaulting Party for such default.
22. Commissions. Each party represents that it has not engaged any broker in
connection with the transactions contemplated by this Agreement and agrees to indemnify and
hold the other harmless from anyone claiming a commission/fee through them.
23. Notices. Any notices required herein shall be deemed given when sent in the U.S.
Mail, either registered or certified, return receipt requested, or by Federal Express or other
overnight delivery service requiring a signature upon receipt, to the parties at the following
addresses:
SELLER: Economic Development Authority of Brooklyn Center, Minnesota
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Attn: Executive Director
With a copy to: Jenny Boulton
Kennedy and Graven, Chartered
Fifth Street Towers
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
BUYER Project for Pride in Living
1035 East Franklin Avenue
Minneapolis, MN 55404
Attn: ___________________
With a copy to: ___________________________
___________________________
___________________________
24. Reimbursement of Costs. Upon execution of this Agreement by both parties, the
Buyer shall deposit with the Seller the sum of Ten Thousand Dollars ($10,000.00) to pay for the
Seller’s reasonable out-of-pocket legal, financial consultant, and administrative fees associated
with this transaction. Unexpended funds will be returned by the Seller to the Buyer and if ,
additional funds are needed by the Seller to pay such expenses, the Buyer will deposit such
additional funds upon request by the Seller.
25. Survival. All representations, warranties, and indemnities set forth herein shall
survive the Closing, except as otherwise provided herein.
26. Governing Law. This Agreement shall be governed by and construed in accordance
13
BR291\386\883736.v1
with the laws of the State of Minnesota.
27. Assignment. The Buyer shall have the right to assign its interest to this Agreement
to an entity in which the Buyer has an ownership interest, is a member or is otherwise affiliated
with. The consent of the Seller shall be required if the Buyer assigns this Agreement to any third
party with which the Buyer has no connection.
28. Binding Effect. This Agreement is binding upon the Parties and their respective
permitted successors and assigns.
29. Construction. This Agreement shall not be construed more strictly against one
Party than the other, merely by virtue of the fact that it may have been prepared primarily by
counsel for one of the Parties, it being recognized that both the Buyer and the Seller have
contributed substantially and materially to the preparation of this Agreement.
30. Headings. The headings preceding the text of the sections and subsections hereof
are inserted solely for convenience of reference and shall not constitute a part of this Agreement,
nor shall they affect its meaning, construction, or effect.
31. Severability. The invalidity or unenforceability of any term or terms of this
Agreement shall not invalidate, make unenforceable or otherwise affect any other term of this
Agreement, and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted, and in such event, the remaining terms of this Agreement
shall remain in full force and effect.
32. Computation of Time. In computing any period of time pursuant to this Agreement,
the day of the act or event from which the designated period of time begins to run will not be
included. The last day of the period so computed will be included, unless it is a Saturday, Sunday,
or federal holiday, in which event the period runs until the end of the next day which is not a
Saturday, Sunday, or federal holiday.
33. Time of the Essence. All times, wherever specified herein for the performance by
the Seller or the Buyer of their respective obligations hereunder, are of the essence of this
Agreement.
34. Complete Agreement. This instrument and any exhibits, schedules or addendums
attached hereto contain the entire Agreement of the Parties regarding the subject matter hereof,
and supersedes all prior negotiations, agreements, or understandings, whether oral or in writing.
This Agreement may not be changed orally but only by an Agreement in writing signed by the
Parties.
35. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute an original but all of which, taken together, shall constitute but one
and the same instrument.
14
BR291\386\883736.v1
IN WITNESS WHEREOF, the undersigned have signed this Option Agreement as of the day and
year first written above.
SELLER:
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
By: ______________________________
April Graves
Its: President
By: ______________________________
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledgment before me this ____ day of _____________,
2023, by April Graves and ______________, the President and Executive Director, respectively
of the Economic Development Authority of Brooklyn Center, Minnesota, a public body
corporate and politic in the State of Minnesota on behalf of the Authority.
________________________________
Notary Public
15
BR291\386\883736.v1
BUYER:
PROJECT FOR PRIDE IN LIVING, INC.
By:
Its: ______________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledgment before me this ____ day of _____________,
2023, by ___________________, the ________________ of Project for Pride in Living, Inc., a
Minnesota nonprofit corporation on behalf of the company.
________________________________
Notary Public
This document was drafted by:
Kennedy & Graven, Chartered (JSB)
150 South 5th Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
A-1
BR291\386\883736.v1
EXHIBIT A
LEGAL DESCRIPTIONS OF THE OPTION PROPERTY
A portion of a parcel of land at the northeast intersection of County Road 10 and Shingle Creek
Parkway in Brooklyn Center, Minnesota currently identified as Parcel ID number 02-118-21-24-
0019 to be re-platted as:
Lot 2, Block 4 Opportunity Site Addition
but subject to the final plat thereof.
B-1
BR291\386\883736.v1
EXHIBIT B
Due Diligence Documents
Copies of the following in the Seller’s possession and related to the Option Property:
1. Copies of real estate tax bills and special assessments (if any), and payment status for the
preceding three full calendar years;
2. Statements of any and all expenses related to the Option Property for the preceding three
full calendar years;
3. Copies of all agreements affecting the Option Property;
4. All studies and reports in the possession of the Seller relating to environmental status,
soil tests, and any other information regarding the environmental and soil conditions;
5. Copies of any written citations from any governmental entities pertaining to the Option
Property including those pertaining to any uncured violations of any applicable laws and
codes or compliance with the same;
6. All site plans, construction documents, engineer reports, and property assessments
performed to date for the Option Property;
7. Any existing surveys of the Option Property; and
8. All certificates of insurance relating to the Option Property and claims made in the last
three years.
THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
RESOLUTION NO.
SUPPORTING USE OF TAX INCREMENT FINANCING FOR A RENTAL
HOUSING DEVELOPMENT PROJECT
WHEREAS, the Brooklyn Center Economic Development Authority (the “EDA”)
was created pursuant to the Economic Development Authorities Act, Minnesota Statutes,
Sections 469.090 to 469.1080 (the “EDA Act”), and is authorized pursuant to Minnesota
Statutes §469.174 to §469.1794 (the “TIF Act”) to use Tax Increment Financing to carry
out the public purposes described herein;
WHEREAS, the EDA has received a request to provide tax increment financing
assistance to Project for Pride in Living (or an affiliated entity, the “Developer”) for
construction of a 60-unit multifamily workforce rental housing apartment (the “Project”) to
be located on approximately 0.867 acres of land at the northeast intersection of County
Road 10 and Shingle Creek Parkway Brooklyn Center, Minnesota; and
WHEREAS, in connection with its application to Minnesota Housing for tax credits
for the Project, the Developer has requested that the EDA indicate its support of the use
of tax increment financing for the Project.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the
Brooklyn Center Economic Development Authority (the “Board”) as follows:
The EDA supports the use of tax increment financing for the Project in an amount
not to exceed $340,000 payable over approximately 19 years; provided, however, that
authorization of tax increment financing for the Project is solely within the discretion of the
City Council after satisfaction of all conditions required pursuant to the EDA Act and the
TIF Act, including without limitation, (i) a public hearing; (ii) determining that tax increment
financing assistance is necessary for the Project; and (iii) verification of development
financing need that substantiates that “but for” the use of tax increment financing the
Project would be unable to proceed.
The foregoing resolution was introduced by Commissioner ____ and duly seconded by
Commissioner ___ . The following Commissioners voted in favor of the resolution:
_______. The following Commissioners voted against the resolution: _______. The
following Commissioners were absent: _______. Whereupon the resolution was adopted.
ADOPTED: JUNE, 26 2023
President Executive Director
1
BR291\386\808487.v3
Commissioner _________________ introduced the following resolution and moved its adoption:
EDA RESOLUTION NO. 2023-____
RESOLUTION APPROVING CERTAIN OPTION AGREEMENTS
WITH PROJECT FOR PRIDE IN LIVING, INC.
WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the “EDA”) owns
the parcels located in the City of Brooklyn Center (the “City”) currently identified as Parcel ID number
02-118-21-24-0019 and to be re-platted as Lot 1, Block 4 Opportunity Site Addition, subject to the final
plat thereof (the “Lot 1 Property”) and Lot 2, Block 4 Opportunity Site Addition, subject to the final plat
thereof (the “Lot 2 Property” and, together with the Lot 1 Property, the “Option Property”); and
WHEREAS, Project for Pride in Living, Inc., a Minnesota nonprofit corporation (or a limited
partnership or other entity to be formed thereby or affiliated therewith, the “Developer”), has
proposed to develop the Lot 1 Property into a multi-story, approximately 60-unit apartment
building and the Lot 2 Property into a multi-story, approximately 70-unit apartment building, with
both buildings having at least 40% of the units occupied or held for occupancy by persons and
families whose incomes do not exceed 60% of the area median income and underground and
surface parking stalls (together, the “Development”); and
WHEREAS, the EDA and the Developer propose to enter into an Option Agreement related
to the Lot 1 Property and an Option Agreement related to the Lot 2 Property (together, the “Option
Agreements”), setting out the respective rights of the Developer to purchase the Option Property
from the EDA, contingent among other things, on the Developer obtaining financing for the
Development; and
WHEREAS, the EDA and the City have undertaken a program to promote economic
development and job opportunities, promote the development and redevelopment of land which is
underutilized within the City, and promote the development of adequate and affordable housing,
and in this connection created a development district in the City; and
WHEREAS, the City and the EDA have established Tax Increment Financing District No.
7 (Redevelopment District) which includes the Option Property (the “TIF District”) pursuant to
Minnesota Statutes Sections 469.174 to 469.1794, as amended (the “TIF Act”); and
WHEREAS, the City or the EDA may incur certain costs related to the TIF District which
may be financed on a temporary basis from available EDA funds; and
WHEREAS, under Section 469.178, subdivision 7 of the TIF Act, the City and the EDA are
authorized to advance or loan money from any fund loan from which such advances may legally be
made in order to finance expenditures that are eligible to be paid with tax increments under the TIF
Act; and
WHEREAS, the City has determined that it or the EDA must pay for administrative costs
associated with the establishment of the TIF District and certain other costs incurred in connection
2
BR291\386\808487.v3
with the proposed development of the TIF District (the “Cost Advances”) on a temporary basis from
the City’s General Fund, the EDA’s General Fund, or any other fund from which such advances,
from time to time, may be legally made (the “Fund”) as an interfund loan pursuant to Minnesota
Statutes Section 469.178, subdivision 7; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of Brooklyn Center, Minnesota (the “Board”), as follows:
1. Subject to all of the contingencies set forth therein, including, without limitation, the
approval of the use of a portion of the tax increments from Tax Increment Financing
District No. 7 (Redevelopment District) derived from the Option Property therein
after all proceedings required by the TIF Act and a public hearing on the sale of the
Option Property to the Developer in accordance with the requirements of law, the
EDA hereby approves the Option Agreements, in substantially the forms presented to
the Board, together with any related documents necessary in connection therewith,
including without limitation, documents or certifications referenced in or attached
thereto (the “Development Documents”), and hereby authorizes the President and
Executive Director to execute, on behalf of the EDA, the Development Documents to
which the EDA is a party and to carry out, on behalf of the EDA, the EDA’s
obligations thereunder when all conditions precedent thereto have been satisfied.
2. The approval hereby given to the Development Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and
appropriate and approved by legal counsel to the EDA and by the officers authorized
herein to execute said documents prior to their execution; and said officers are hereby
authorized to approve said changes on behalf of the EDA. The execution of any
instrument by the appropriate officers of the EDA herein authorized shall be
conclusive evidence of the approval of such document in accordance with the terms
hereof. This Resolution shall not constitute an offer and the Development Documents
shall not be effective until the date of execution thereof as provided herein. In the
event of absence or disability of the authorized officers, any of the documents
authorized by this Resolution to be executed may be executed without further act or
authorization of the Board by any duly designated acting official, or by such other
officer or officers of the Board as, in the opinion of legal counsel to the EDA, may
act on their behalf.
3. The EDA hereby authorizes the expenditure of available EDA general fund dollars
for the administrative costs of the TIF District in such amount as is permitted under
the TIF Act and determined necessary and set forth in writing by the Executive
Director of the EDA for the establishment of the TIF District.
4. This Resolution is evidence of an internal borrowing by the EDA in accordance with
Section 469.178, subdivision 7 of the TIF Act in an amount equal to the Cost
Advances, and is a special, limited obligation payable solely from the respective TIF
District pledged to the payment hereof under this Resolution (collectively, the
“Interfund Loans”). The EDA will reimburse itself solely from the tax increment
from the applicable TIF District for the Cost Advances together with interest at the
rate of four percent per annum (which is the greater of the rates specified under
3
BR291\386\808487.v3
Section 270C.040 or 549.09, in accordance with Minnesota Statutes Section 469.178,
subdivision 7); provided, however, the Executive Director of the EDA is authorized
to specify a lower rate. Payments shall be applied first to accrued interest, and then
to unpaid principal, unless otherwise specified by the Executive Director of the EDA.
Interest accruing from the date of each Cost Advance will be compounded
semiannually on February 1 and August 1 of each year and added to principal, unless
otherwise specified by the Executive Director of the EDA.
5. Payments on the Interfund Loans may be subordinated to any outstanding or future
bonds, notes, or contacts secured in whole or in part with available tax increment and
are on a parity with any other outstanding or future interfund loans secured in whole
or in part with available tax increment. The Interfund Loans shall not be deemed to
constitute a general obligation of the State of Minnesota or any political subdivision
thereof, including, without limitation, the City, or the EDA. Neither the State of
Minnesota, nor any political subdivision thereof shall be obligated to pay the principal
of or interest on the Interfund Loans or other costs incident hereto except out of the
applicable TIF District. The EDA shall have no obligation to pay any principal
amount of the Interfund Loans or accrued interest thereon from any other source, and
such amounts may remain unpaid after the final Payment Date.
6. The EDA may at any time, make a determination to forgive the outstanding principal
amount and accrued interest on the Interfund Loans, in whole or in part, on any date
from time to time, to the extent permissible under law.
7. The EDA may from time to time amend the terms of this Resolution to the extent
permitted by law, including without limitation, amending the payment schedule and
the interest rate; provided that the interest rate may not be increased above the
maximum specified in Section 469.178, subdivision 7 of the TIF Act.
_________________________ _________________________________
Date President
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
4
PPL – Agreement #1
PPL – Agreement #2
Council/E D A Work
S ession
City Hall Council Chambers
J une 26, 2023
AGE NDA
AC T I V E D I S C US S IO N I T E M S
1.Preliminary I nformation on Potential Dog P ark P roject
Staff ask that the Council hear preliminary information regarding a potential
dog park project and how it fits into the City's Capital I mprovement P rogram
(C I P).
2.City Traffic S top and Consent Search Work Session
Q & A work session. T he City will present its reply and recommendation to the
D K I C proposed traffic stop and consent search ordinance.
P E ND I NG L I S T F O R F UT URE WO RK S E S S IO NS
1.Upcoming I tems
Memorial P olicy
Special Assessment Policy/Franchise F ees (referred to Financial
Commission)
Beautification and P ublic Art Commission
L iquor S tore 2
Organizational Chart-B udget work sessions
New and Repeat Type I V Rental L icense Review (referred to Housing
Commission)
F ood Truck Ordinance/L icense
Emerald Ash B orer Policy Review (referred to Park & Rec Commission
November)
Opioid Settlement
A R PA Funds
Police L abor Study
Dog Park
Grants: Revenues & E xpenses
Purchasing Policy
Commercial Vacant Building Fees
I nterveners I mpact
C ouncil/E DA Work Session
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:Elizabeth H eyman - D irector of P ublic Works
S U B J E C T:P reliminary I nforma4on on Poten4al D og Park P roject
Requested Council A con:
S taff ask that the Council hear preliminary informa4on regarding a poten4al dog park project and how it fits
into the C ity's C apital I mprovement P rogram (C I P ).
B ackground:
The C ouncil dis cus s ed a desire for a dog park in Brooklyn C enter. S taff conducted a preliminary asses s ment
of the planning and cons truc4on of a dog park. O n Monday, J une 5th, s ome of the informa4on was
pres ented during the C I P budget w ork s ession. At following council mee4ng on M onday, June 14th, the
Council reques ted a pres enta4on on staff's as s essment and plan for a cityw ide dog park.
B udget I ssues:
N/A
I nclusive C ommunity Engagement:
N/A
A nracist/Equity Policy Effect:
N/A
S trategic Priories and Values:
C ouncil/E DA Work Session
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:L aToya Turk, D irector of C ommunity, P reven.on, H ealth & S afety
S U B J E C T:C ity Traffic S top and Consent S earch Work S ession
Requested Council A con:
Q & A work ses s ion. The City w ill pres ent its reply and recommenda.on to the D K I C propos ed traffic s top
and consent s earch ordinance.
B ackground:
The D aunte Wright and Kobe D imick-H eisler I mplementa.on Commi;ee (D K I C) was establis hed to make
review and make recommenda.ons to the City Council via the Resolu.on 2021-73, D aunte Wright and Kobe
D imock-H eis ler Community S afety and V iolence P reven.on A ct (a;ached).
The D K I C presented recommenda.ons (s ee a;ached) to the City Council in regards to traffic stops and
cons ent searches. City s taff has reviewed the propos ed traffic s top and consent s earch ordinance
recommenda.ons and s hall present its findings to the City Council for cons idera.on.
B udget I ssues:
Budget implica.ons w ill be included in the work ses s ion pres enta.on.
A nracist/Equity Policy Effect:
S trategic Priories and Values:
Enhanced Community I mage, I nclusive C ommunity Engagement, S afe, S ecure, S table
Community, Customer I n.macy, O pera.onal Excellence
AT TA C H M E N TS :
D escrip.on U pload D ate Type
Res olu.on 2021-73 6/23/2023 Backup M aterial
P res enta.on 6/23/2023 Backup M aterial
Policy Workgroup
Recommendations
Daunte Wright & Kobe Dimock-Heisler
Community Safety & Violence Prevention Resolution
Why Policy Change in Brooklyn Center Is Important: Vehicle Stops
•Excessive stops for minor equipment issues erode community trust in
law enforcement
•Minimal Effectiveness in finding evidence of larger crimes
•Racial disparities in enforcement
•Deadly outcomes
Vehicle Stop Policy Recommendation:
•Vehicles would no longer be stopped solely for the following violations:Vehicles would no longer be stopped solely for the following violations:Vehicles would no longer be stopped solely for the following violations:Vehicles would no longer be stopped solely for the following violations:
•Invalid or expired registrationInvalid or expired registrationInvalid or expired registrationInvalid or expired registration
•No functioning license plate lightNo functioning license plate lightNo functioning license plate lightNo functioning license plate light
•No operative mufflerNo operative mufflerNo operative mufflerNo operative muffler
•Exceeding vehicle noise rules of the Pollution Control AgencyExceeding vehicle noise rules of the Pollution Control AgencyExceeding vehicle noise rules of the Pollution Control AgencyExceeding vehicle noise rules of the Pollution Control Agency
•Cracked or discolored windshield or rearview mirror decorationsCracked or discolored windshield or rearview mirror decorationsCracked or discolored windshield or rearview mirror decorationsCracked or discolored windshield or rearview mirror decorations
Vehicle Stop Policy Recommendations:
•Vehicles would no longer be stopped solely for the following violations (cont.):
•Inoperative windshield wipers
•Excessive window tinting
•Improperly displayed license plate or permit sticker
•Improper operational condition
•Broken or improperly used headlights, tail lights, or turn signals
•Vehicles can be stopped solely for the above listed offenses under the following conditions:
•Officers may pull someone over if the windshield is so heavily damaged that it poses a dangerous
condition.
•Officers may pull someone over if the car’s equipment poses a dangerous condition.
Vehicles can be stopped solely for the above listed offenses under the Vehicles can be stopped solely for the above listed offenses under the Vehicles can be stopped solely for the above listed offenses under the Vehicles can be stopped solely for the above listed offenses under the
following conditions:following conditions:following conditions:following conditions:
•Vehicles can be stopped solely for the above listed offenses under the Vehicles can be stopped solely for the above listed offenses under the Vehicles can be stopped solely for the above listed offenses under the Vehicles can be stopped solely for the above listed offenses under the
following conditions:following conditions:following conditions:following conditions:
•Officers may pull someone over if the windshield is so heavily damaged Officers may pull someone over if the windshield is so heavily damaged Officers may pull someone over if the windshield is so heavily damaged Officers may pull someone over if the windshield is so heavily damaged
that it poses a dangerous condition.that it poses a dangerous condition.that it poses a dangerous condition.that it poses a dangerous condition.
•Officers may pull someone over if the car’s equipment poses a Officers may pull someone over if the car’s equipment poses a Officers may pull someone over if the car’s equipment poses a Officers may pull someone over if the car’s equipment poses a
dangerous condition.dangerous condition.dangerous condition.dangerous condition.
Change in Vehicle Stops Policy Established Elsewhere:
Several cities have already adopted a changed vehicle stop policy, Several cities have already adopted a changed vehicle stop policy, Several cities have already adopted a changed vehicle stop policy, Several cities have already adopted a changed vehicle stop policy,
including: including: including: including:
•MinneapolisMinneapolisMinneapolisMinneapolis
•Lansing, MichiganLansing, MichiganLansing, MichiganLansing, Michigan
•PhiladelphiaPhiladelphiaPhiladelphiaPhiladelphia
•PittsburghPittsburghPittsburghPittsburgh
•SeattleSeattleSeattleSeattle
•Los AngelesLos AngelesLos AngelesLos Angeles
•Virginia (state law)Virginia (state law)Virginia (state law)Virginia (state law)
Research Related to Vehicle Stop Policies :
•An extensive study at Stanford found that black and An extensive study at Stanford found that black and An extensive study at Stanford found that black and An extensive study at Stanford found that black and hispanichispanichispanichispanic drivers were stopped and searched at a drivers were stopped and searched at a drivers were stopped and searched at a drivers were stopped and searched at a
higher rate than white drivers.higher rate than white drivers.higher rate than white drivers.higher rate than white drivers.
•Data after 1M stops studied with various jurisdictions from 2011 Data after 1M stops studied with various jurisdictions from 2011 Data after 1M stops studied with various jurisdictions from 2011 Data after 1M stops studied with various jurisdictions from 2011 ---- 2018201820182018
•A large scale analysis of racial disparities in police stops across the United StatesA large scale analysis of racial disparities in police stops across the United StatesA large scale analysis of racial disparities in police stops across the United StatesA large scale analysis of racial disparities in police stops across the United States, Nature , Nature , Nature , Nature
Human Behavior, Vol 4, July 2020Human Behavior, Vol 4, July 2020Human Behavior, Vol 4, July 2020Human Behavior, Vol 4, July 2020
•A A A A Vera Institute reportVera Institute reportVera Institute reportVera Institute report from October 2021 found that:from October 2021 found that:from October 2021 found that:from October 2021 found that:
•When researchers examined statistics surrounding “must stop” situations that presented a When researchers examined statistics surrounding “must stop” situations that presented a When researchers examined statistics surrounding “must stop” situations that presented a When researchers examined statistics surrounding “must stop” situations that presented a
clear danger and lowerclear danger and lowerclear danger and lowerclear danger and lower----level stops that did not, they found that virtually all of the racial level stops that did not, they found that virtually all of the racial level stops that did not, they found that virtually all of the racial level stops that did not, they found that virtually all of the racial
disparities in stops could be attributed to the lowerdisparities in stops could be attributed to the lowerdisparities in stops could be attributed to the lowerdisparities in stops could be attributed to the lower----level stops.level stops.level stops.level stops.
•NonNonNonNon----public safety stops also expose police officers to unnecessary danger. public safety stops also expose police officers to unnecessary danger. public safety stops also expose police officers to unnecessary danger. public safety stops also expose police officers to unnecessary danger.
•The The The The most common proactive policing activitymost common proactive policing activitymost common proactive policing activitymost common proactive policing activity preceding a fatality is an officerpreceding a fatality is an officerpreceding a fatality is an officerpreceding a fatality is an officer----initiated traffic initiated traffic initiated traffic initiated traffic
stop.stop.stop.stop.
C ouncil/E DA Work Session
DAT E:6/26/2023
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, City Manager
T H R O U G H :N/A
BY:D r. Reggie Edwards, City Manager
S U B J E C T:U pcoming I tems
Requested Council A con:
Memorial Policy
S pecial A s s essment Policy/F ranchise Fees (referred to F inancial C ommission)
Beau/fica/on and P ublic A rt C ommis s ion
Liquor S tore 2
O rganiza/onal Chart-Budget work ses s ions
New and Repeat Type I V Rental Licens e Review (referred to H ousing C ommission)
Food Truck O rdinance/Licens e
Emerald A s h Borer Policy Review (referred to Park & Rec C ommission November)
O pioid S e:lement
A R PA F unds
Police L abor S tudy
D og Park
G rants: Revenues & Expens es
P urchasing Policy
Commercial Vacant Building Fees
I nterveners I mpact
B ackground:
B udget I ssues:
A nracist/Equity Policy Effect:
S trategic Priories and Values: