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HomeMy WebLinkAbout2009 04-27 CCM Work SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION APRIL 27, 2009 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 8:59 p.m. ROLL CALL Mayor/PresidentTim Willson and Councilmembers/Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off Site Secretarial, Inc. HOUSING PROGRAM UPDATE - CITY MANAGER Mr. Eitel reviewed accomplishments in the Housing Program over the last month and advised the acquisition program has fallen short in acquiring additional properties because the real estate market has turned around. Multiple offers are now being made and the City is not able to respond quickly enough with purchase agreements. Mr. Eitel explained a funding program that is targeted for the southeast area. There is $300,000 of loan assistance in the preliminary budget, $500,000 for reh ib projects, and $1.1 million for acquisitions. The Council discussed assistance opportunities with CDBG rehab funding, a volunteer group that assists with kehab carpentry, and the option of leveraging private loan programs. i Mr. Boganey stated that based on his experience, the City would never have enough dollars to fund direct loani demands for rehab. He described programs that assured the applicant was properly income qualified and assisted with interest write down or loan guarantees. It was noted that in some cases, declining home values have resulted in loss of equity so the bank would not approve a loan, even for income-qualified homeowners, because they have no collateral. Should the City be the guarantor for a certain period of time, the City could back out when the value increased to create equity and a guarantee was no longer needed. Council discussi )n continued on the ability of the City to assist with rehab funding through the Neighborhood Stabilization Program and the redevelopment of Brooklyn Boulevard properties. The majority consensus of the City Council was to entertain options for rehab assistance that do not create liability for the City. 04/27/09 -1- BANNER INSTALLATION POLICY - CITY MANAGER Mr. Lillehaug presented the banner program and policy that was developed in response to completion of the street improvement projects and answered questions of the Council. He recommended an ad hoc advisory committee be created to review and provide recommendations of all banners to the City Manager, who would be authorized as the approving authority for banner policy determinations. Staff would supervise and coordinate the installation and removal of all banners. The only appeal option would be with a sponsored banner that the ad hoc committee recommends against. The Council discussed the banner policy and material specifications required to assure the banners are long lasting. It was noted that Centennial Celebration banners create an anomaly because they would be displayed for six months to one year. Councilmember Roche raised the option of permanent banners for the Earle Brown Heritage Center and a banner promenade along Shingle Creek Parkway from I-694 to Bass Lake Road tying in the Heritage Center and Embassy Suites. Mr. Boganey recommended the City first start with this policy in a limited context. Once locations are expanded, or used for way finding, then staff would look at expanding the policy. With regard to the banner fee, Mr. Boganey stated it would be intended to cover the City's cost of issuance and to oversee the installation by a private group. The City Council asked staff to research options for lower cost, yet durable, banner material for use in short-term special event banners. EMBASSY SUITES LINK UPDATE - CITY MANAGER Mr. Boganey informed the Council that Seth Oliver, representing the owners of the Embassy Suites Hotel, had indicated they are unable to continue the lease of the D Barn for a Spa or complete the link due to cost overruns. He advised that staff met with Mr. Oliver and engaged Springsted to review factual financial data with respect to the project cost and overruns. The result of that analysis indicated if the developer was required to build the link, it would reduce their return on investment by 1/10 of a percent over the life of the project but would not bankrupt the partnership. Given that information, staff did not believe it could recommend a three-year delay, as being requested. Mr. Boganey advised that staff felt there needed to be some commitment based on the ten-year lease since the City lost a tenant and spent $50,000 to improve a building to relocate a tenant. Mr. Boganey advised that staff developed a counter proposal to not build the link if the developer relinquishes rights to Phase 2 land which staff believes has equal or greater value to the EDA than the tax abatement should the developer be found in default of building the link. He stated once the developer analyzes the counter proposal, they may decide they can afford to build the link. 1 04/27/09 -2- The majority consensus of the City Council was that the EDA had negotiated in good faith and the link was an; important element of that discussion. It was noted that the development agreement requires building the link and if not, the City can withhold the tax abatement and collect full taxes which could be used to build the link. The Council expressed concern with a change in the prcject at this point. Mr. Boganey stated staff will report back on the developer's response to the counter proposal in the next few weeks. STR)JEGIC GOALS / DESIRED OUTCOMES - CITY MANAGER Mr. Boganey provided an overview and answered questions of the Council on the 2009 Strategic Goals. Following discussion, the majority consensus of the City Council was for the following Goal Outcomes: Goal 1: "Ensure a safe and secure communitv." 1. The threat and fear of real or perceived crime among citizens and others will be reduced. a. Part Ilcrime ranking will be reduced compared to other cities. 2. Citizens will feel and be safe in all areas of the City and in their homes. Goal 2: "Aggressively proceed with implementation of the Citv's redevelopment plans." 1. Privatelyfunded redevelopment will be expanded and improved. 2. The City tax base will be expanded and improved. a. Citizens will benefit from the optimal redevelopment of Brookdale Mall. b. Redevlelopment of the "Opportunity Site" will commence. c. Redevelopment of all EDA owned property will proceed expeditiously. Goal 3: "Stabilize and Improve Residential Neighborhoods." 1. Citizens, will benefit from a diverse stock of housing types and styles. a. Promc to adaptation of existing homes. 2. Owners od occupants of housing in residential neighborhoods will comply with City codes and regulations, which will be adequate to assure a safe well maintained and attractive' community. 3. Owner occupied housing will increase as a percentage of total housing. 4. The problems associated with foreclosed residential properties will be dramatically reduced Or eliminated. 5. Residential property values will improve and citizens will have pride in their neighborhood. Due to the late hour, the majority consensus of the City Council was to postpone consideration of the remaining goals and outcomes to the next Council Work Session. ADJOURNMENT 1 04/27/09 -3- Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Lasman seconded adjournment of the City Council/Economic Development Authority Work Session at 10:59 p.m. Motion passed unanimously. 1 1 04/27/09 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROIOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That ati ached hereto is a full, true, and complete transcript of the minutes of a Work Session of the City Council of the City of Brooklyn Center held on April 27, 2009. 2. That sa:.d meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its May 11, 2009, Regular Session. e Clerk ~ Mayor 1 1 04/27/09 -5-