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HomeMy WebLinkAbout2023 04.24 CCM STUDY SESSION3/24/23 -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 APRIL 24, 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 6:05 p.m. ROLL CALL Mayor April Graves and Councilmembers Marquita Butler, Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Interim Community Development Director Jesse Anderson, Assistant City Manager/City Clerk Barb Suciu, and City Attorney Jason Hill. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Lawrence-Anderson requested the following correction to the Study Session minutes of April 10, 2023: Study Session, page 1, line 3, add a dash between Lawrence and Anderson. Regular Council minutes; page 4, second to the last paragraph, it was Joylenna G. and not Julie B. MISCELLANEOUS LEGISLATIVE UPDATE Dr. Edwards stated he asked the City’s lobbyist to come before the council tonight to provide a legislative update as well as some information regarding the bonding process. Ann Lench, City Lobbyist, explained she served on a City Council in suburban Twin Cities and then was in the legislature for nine terms. She noted Minnesota has Constitutional writings on debt, which requires a supermajority in the legislature. They hope to get money to Brooklyn Center for the Community Center. The legislature also requires a match, which Brooklyn Center has agreed to. Lastly, the City is also required to find someone to write the request. Ms. Lench noted Governor Walz previously selected Brooklyn Center as a recipient of $4 million, but the bonding bill didn’t pass. The Governor has now selected Brooklyn Center as a recipient of $15 million, and Senator Pha is supporting the effort. The legislature is also working on a local 4/24/23 -2- DRAFT sales tax. Ms. Lench stated there is a lot of confusion regarding local bonding. Instead, members of the legislature would understand the term “property tax levy.” Also, State bonding requires a level of regional significance. Councilmember Jerzak asked if Representative Vang has a reason for not introducing the bill yet. Ms. Lench stated she is unable to speak for Representative Vang, but she is also working with some nonprofits in the area. Councilmember Jerzak noted there is potential bonding for ACER to receive $3 million for projects in Brooklyn Center. He asked if there is an update. Ms. Lench stated she doesn’t have an update, but it isn’t exactly bonding. State bonding bills are funded through State general funds, meaning the whole State chips in. Brooklyn Center residents also pay into the State general fund. It is smart for Brooklyn Center to start utilizing the State bonding. Mayor Graves stated that Representative Vang’s concern relates to whether Brooklyn Center can perform the proper maintenance rather than falling to the residents. The City is working to show it can afford to maintain the Community Center. Ms. Lench pointed out the State government doesn’t expect public facilities to make money. City Manager Reggie Edwards added Staff is working to write a reply to Representative Vang with the information she requested. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS SHINGLE CREEK CROSSINGS UPDATE Dr. Edwards introduced the item and invited Interim Community Development Director Jesse Anderson to continue the Staff presentation. Interim Community Development Director Jesse Anderson explained the Single Creek Crossings Development opened in 2012 after the Brookdale Mall had been closed and demolished. Walmart owns its 18-acre site in the middle of the shopping area. Gatlin Development owns the majority of the surrounding businesses. Mr. Anderson noted there are several updates for the area. Micholandia Ice Cream will be moving in shortly. Two new businesses intend to move into existing spaces. Staff have received the planning application from Pollo Campero who intends to construct a new restaurant site across from the Liquor Store. Mr. Anderson added Staff has held multiple meetings with Gatlin, and no tenants have stated they intend to close. Gatlin Development has a ground lease for Applebee’s, which is a great option 4/24/23 -3- DRAFT for a local entrepreneur with the potential for an affordable lease at a site ready for a restaurant. Mr. Anderson stated the Walmart national representatives stated they intend to sell the property and release site restrictions on Shingle Creek Crossings. Staff met with Walmart’s real estate department today, and they expect the property to be listed for sale in the following week. Mr. Anderson stated the best and most cost-effective option for strengthening the site immediately includes finding a new user for the existing building. Initial conversations for filling the space have included the possibility of an Asian Mall or International Food Village. If a new user cannot be found, then a larger-scale redevelopment of the site could be considered. This would be a very long-term plan that would take some time to implement. These options would not be undertaken until all other alternatives are exhausted. Mr. Anderson pointed out the City has general obligation bonds outstanding related to the Shingle Creek Crossing project. The bonds are paid with tax increments generated by the project. Tax increment collections are currently more than adequate to pay for the bonds. City Staff reviewed revenue expectations and the value of all properties in the tax increment financing (TIF) district could decrease by approximately 25 percent and still meet its existing obligations. City Staff will continue to annually monitor the district. Mr. Anderson added the Police Department and Community Development Staff have been holding regular meetings with Frank Gatlin regarding safety and security at the site. The staff has been working towards a contract with on-site overtime officers at the site. There have also been discussions regarding an increase in security cameras in the surrounding areas. Mr. Anderson stated on March 31, 2023, members of the Council, Police Department, Metro Transit Police Department, and the Metropolitan Council met to discuss the impact that Brooklyn Center Transit Center is having on the area. Solutions to the concern are continuing to be discussed. Councilmember Butler asked if Gatlin owns LA Fitness. Mr. Anderson stated he would check and get back to the Council. Councilmember Butler stated there have been a lot of safety and security issues with LA Fitness, so the owners of that building should be included in any related discussions. Councilmember Jerzak asked if Mr. Gatlin has concerns about the leases for its largest sites, Burlington and TJ Maxx, particularly because both of their leases will be up soon. Mr. Gatlin has spoken to those two businesses, and they are both still making a profit. Also, their leases should change and become cheaper with Walmart leaving. Councilmember Jerzak asked if there is any update on the space for Discount Tire. Mr. Anderson stated there is not currently an update. Councilmember Kragness asked if Brooklyn Center is relying on the excess buildup of TIF #5. Mr. Anderson stated there is potential to end the district early. Walmart’s increment is smaller than 4/24/23 -4- DRAFT what the excess in TIF District #5 was receiving annually. Councilmember Jerzak asked what the upcoming plans for the security of the Walmart building are so the City doesn’t become responsible for security. Mr. Anderson stated Walmart will have security personnel inside and outside the building. The security system will remain in place, and they will still be running heating and cooling as needed. Also, there will be regular inspections implemented by Walmart. Councilmember Lawrence-Anderson asked what the impact will be on the City regarding lost taxes. Mr. Anderson stated all of the revenue from Walmart was going back into the TIF district, and it will continue to go to TIF District #5 until the district is finished. Overall, Walmart closing won’t impact the tax levy or budget process. Councilmember Lawrence-Anderson asked if Target has been approached to take over the building. Mr. Anderson stated there have been conversations with Target, but Walmart is less likely to sell to a competitor or they would sell it at a higher price. Councilmember Lawrence-Anderson pointed out Target closed because of the aging building and the small footprint. The Walmart building is much larger, and newer, and is already set up for grocery. ADJOURNMENT Mayor Graves adjourned the meeting at 6:42 p.m.