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HomeMy WebLinkAbout2024.02.26 CCM EDA/WORK SESSION2/26/24 -1- DRAFT MINUTES 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 FEBRUARY 26, 2024 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 April Graves at 7:39 p.m. ROLL CALL Mayor/President April Graves and Councilmembers/Commissioners Marquita Butler, Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Community Development Director Jesse Anderson, City Attorney Jason Hill, and City Clerk Barb Suciu. ACTIVE DISCUSSION ITEMS ABAT EMENT PROCESS REVIEW FOR PROPERTY NUISANCE CODE VIOLATIONS AND VACANT PROPERTIES City Manager Reggie Edwards provided an overview of the item and invited Community Development Director Jesse Anderson to continue the presentation. Mr. Anderson noted violations for a non-vacant residence include garbage, debris, and rubbish under the Nuisance Property Code, 19-103. Abatement authorization is located in 19-105 which allows the owner up to ten days to correct the violation. The abatement process is located in 12- 1206. If there has been no appeal, the request for abatement shall be brought to the City Council/EDA, and a resolution must be adopted to abate the violation. Mr. Anderson explained if the Staff finds a violation of the City Code, they attempt to door knock and speak with the resident. They then send a compliance notice with a follow-up date. Staff completes a follow-up inspection which includes another attempt to speak with the resident. If the residence is still in violation, a second compliance notice is sent out with a new follow-up date. If the residence remains in violation, Staff may issue a citation. Staff will do several follow-up inspections and attempt to make contact to discuss the violation. After no compliance, Staff will bring the violation of nuisance abatement into consideration by writing a City Council/EDA memo for the City Council/EDA to review. He showed example images. 2/26/24 -2- DRAFT Mr. Anderson pointed out there is a different process for the abatement of vacant property. Vacant properties are discussed under 12-1501 to 12-1511. 12-507 requires property owners to maintain and secure their property. 12-1504.3 allows for the abatement of violations on the property while 12-1507.14 allows for emergency abatements. In the case of emergency abatements, compliance notice is given for a maximum of ten days to correct the violation and does not require City Council/EDA authorization. Mr. Anderson shared an example of the non-vacant property at 1208 57th Avenue North. The property was occupied by someone who didn’t own the property. Staff received several complaints. Several notices and inspections were completed, but the owner was not located. The property had exterior violations such as the accumulation of trash, debris, and rubbish. The property also had excessive calls for service. Eventually, the case was brought to the City Council/EDA. The City Council/EDA approved the abatement, and the property was abated. The entire process took four months to complete. He showed images of the property. Mr. Anderson asked if the City Council/EDA would be open to changing the abatement process for occupied properties to make it more similar to the emergency vacant abatement process. If so, after several inspections, Staff can post the property for an abatement of the violation. The abatement will be conducted after the compliance period expires and will not need City Council/EDA approval. Councilmember/Commissioner Jerzak noted his ample experience with City Codes and abatements. There are countless opportunities for the owners to fix the violations. The process is difficult and often includes distressed neighbors. There are already a lot of checks and balances in place, and the process is fair. Brooklyn C enter is one of the last cities doing the abatement process in this manner. He urged his fellow Councilmembers to consider changing the process. He added there is an issue of privacy when abatements are brought before the City Council/EDA. Councilmember /Commissioner Kragness asked if there would be a benefit for the property owner to come before the City Council/EDA to speak. Mr. Anderson stated the appeal process could include the opportunity to speak before the Council. Mayor/President Graves stated she wants to make the process easier. Mr. Anderson pointed out abatement isn’t the first choice of Staff. Instead, it is a last resort or used for extreme circumstances. The majority consensus of the City Council/EDA was to move forward with the Staff recommendation to review the abatement process and consider adopting an ordinance that allows for Staff to abate the public nuisance violation and vacant building abatement process without bringing each case in front of council for consideration. 2/26/24 -3- DRAFT REPEAT TYPE IV RENTAL LICENSE AND RENTAL LICENSE AT NEW CONSTRUCTION City Manager Reggie Edwards provided an overview of the item and invited Community Development Director Jesse Anderson to continue the presentation. Mr. Anderson explained the City has had a rental licensing program since the 1970s. In 2010, the City Council/EDA adopted modifications to the Ordinance to create a four-tier performance-based system. The program was modified again in 2018. Each category had an increase in one property code violation to allow for more properties to qualify for a higher license. Also, monthly updates and meeting requirements were removed. Mr. Anderson stated that 12-901 to 12-1301 is the Rental Ordinance and covers rental license requirements, license renewal, license types and length, the suspension and revocation process, information on police nuisance calls, crime-free housing program requirements, and tenant protection rights. Mr. Anderson showed a table depicting the rental licensing criteria related to code violations. The category is based on the number of property code violations per inspected unit. The category determines the renewal time period among other things. Mr. Anderson showed a table depicting the rental licensing criteria related to police service calls, which include events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft, and arson. Mr. Anderson showed another table with inspection frequency, crime-free housing, and action plan requirements for each category of rental license. Type I, a three-year license, has the fewest requirements while the Type IV license has the most requirements. Mr. Anderson stated there are two ways to qualify as a repeat Type IV license. First, it could be due to code violations. The property owner must renew the license, complete an inspection, and review property code violations for Council approval. Alternatively, one may become a repeat Type IV license by not meeting the Mitigation Plan requirements. This could occur by failing to turn in a Mitigation Plan or not meeting the Crime Prevention Through Environmental Design (CPTED) requirements. Mr. Anderson explained that 44 percent of rentals are Type I, 34 percent are Type II, 14 percent are Type III, and only seven percent of rental licenses are Type IV. Of the 54 Type IV licenses in Brooklyn Center, 18 licenses are repeat Type IV with various levels of repetition. Seven repeat Type IV licenses are due to failure to meet the Mitigation Plan and 11 are a combination of Code violations and failure to meet the Mitigation Plan. Mr. Anderson showed a table depicting previous years’ data on repeat Type IV licenses. The percentage of repeated Type IV licenses increased in 2023. In 2023, 90 percent of repeat Type IV 2/26/24 -4- DRAFT licenses improved on their inspections but failed to meet other requirements. In 2023, three residences were six-time repeat Type IV licenses. Mr. Anderson explained in the event that a license is suspended, revoked, or not renewed by the City Council/EDA, it is unlawful for the owner or the owner's duly authorized agent to thereafter permit any new occupancies of vacant or thereafter vacated rental units until such time as a valid license may be restored by the City Council/EDA. Licenses may be suspended for up to ninety days and may, after the period of suspension, be reinstated subject to compliance with this Chapter and any conditions imposed by the City Council/EDA at the time of suspension. Mr. Anderson added licenses that are revoked will not be reinstated until the owner has applied for and secured a new license and complied with all conditions imposed at the time of revocation. Upon a decision to revoke, deny, or not renew a license, no approval of any application for a new license for the same facility will be effective until after the period of time specified in the City Council/EDA’s written decision, which shall not exceed one year. The City Council/EDA shall specify in its written decision the date when an application for a new license will be accepted for processing. A decision not to renew a license may take the form of a suspension or revocation. A decision to deny an initial application for a new facility will not take the form of a suspension or revocation unless false statements have been made by the applicant in connection with the application. A decision t o deny an initial application shall state the conditions of reapplication. Mr. Anderson stated there were a few questions from the Housing Commission, but they were more general about the rental licensing program. The Commission did not provide any recommendations after Staff presented the repeat Type IV information to them. However, Staff would recommend the program remain how it currently operates. An alternative option would be to reduce the license type to one or two license categories if the applicant fails to meet or submit a Mitigation Plan. Mr. Anderson asked how the City Council/EDA wants to address a property that qualifies as a repeat Type IV rental license. Councilmember/Commissioner Lawrence-Anderson noted she has been involved with the Ho using Commission since 2000. She has been frustrated that a landlord who is following the rules and recommendations of the City is being charged the same amount as a property manager which may be costing the City a lot of money. Mayor/President Graves stated that Type IV licenses have to pay for a renewal every six months whereas those with a Type I license only have to pay the fee every three years. Mr. Anderson stated a landlord with a repeated Type IV license may have to pay up to $1800 over the same time period as someone with a Type I license. Councilmember/Commissioner Lawrence-Anderson asked if there is an inspection fee. Mr. Anderson stated there are two inspections included with the licensing fee. Any additional inspections require an additional fee. 2/26/24 -5- DRAFT Councilmember/Commissioner Jerzak pointed out tenants may see increased rent as the landlords need to pay more fees for licensing and inspections. Also, it is unfair that tenants are punished for landlords not paying utility fees. He added it is extremely rare for a residence to have too many calls for service and it is a lot of work for the Staff to track. It is likely the tenants causing any issues would be evicted or leave on their own. Eliminating the calls for service requirements would fast -track the process. Councilmember/Commissioner Kragness asked how many repeat Type IV licenses there are. Mr. Anderson stated there are currently 54 Type IV licenses and, of those, 18 licenses that are repeated. There are also expired Type IV licenses on top of that. Councilmember/Commissioner Kragness pointed out the pie chart is missing one percent. Mr. Anderson stated the percentages were rounded. Councilmember/Commissioner Kragness asked if the six-month or one-year time period is based on calendar years or from the date of the initial application. Mr. Anderson stated it is based on the inspection date. Mayor/President Graves asked if there is a difference since the required meetings stopped. Mr. Anderson stated that attendance dropped drastically. They were almost unproductive due to the low attendance. The communication is more individualized now. Mayor/President Graves suggested something similar could benefit businesses, though that is a separate conversation. Mayor/President Graves noted there could be more information and education regarding Mitigation Plans. She shared an example of a friend who was confused by the timing and the process with a Type IV rental license. Mr. Anderson stated the delinquent utilities don’t impact the licensing category, though it may hold back the process. The special assessment addresses the delinquent utilities. Mr. Anderson explained properties that have legally not been required to have a rental license due to new construction or a change from owner-occupied to rental will qualify for a Type II License. Properties found operating without a valid rental license from the City or failing to meet City Code requirements or that have been the subject of enforcement actions such as criminal prosecution or civil penalties for violation of this Chapter, will only qualify for a Type III License. Mr. Anderson stated there hasn’t been any single-family new construction converted to rental. As for multi-family new construction, rental license inspection is done during the Certificate of Occupancy inspection with the Building Official. The Building Official goes into every unit and common area and does an inspection for violations. In order for a Certificate of Occupancy to be issued, all of the violations need to be corrected. There is an exception for exterior items that cannot be completed due to weather or do not impact the interior occupancy of the property. Mr. Anderson noted a recent new construction was Sonder House which included 127 units and is an affordable housing development. Their Type II license expired on May 31, 2023. Upon 2/26/24 -6- DRAFT renewal, it was found there were 159 violations and 15 police nuisance calls for service. They qualified for a Type II license again. Mr. Anderson explained Sonder Point is a senior housing development with 143 units. Their Type II license expired on August 31, 2023. As part of the renewal process, 155 violations were found with zero nuisance calls. They also qualified for a Type II license. Mr. Anders on stated The Sanctuary is another senior housing development whose initial Type II license expired on March 31, 2020. The first renewal included 27 violations which allowed them to qualify for a Type I license. Their second renewal included 83 violations, and they continued to qualify for a Type I license. Mr. Anderson added Maranatha is an affordable housing development with 137 units. Their initial Type II license expired on August 31, 2019. Their first renewal resulted in a Type I license. The second renewal showed 16 violations and resulted in another Type I license. Mr. Anderson explained there are four options for new construction rental licensing. First, the ordinance could remain the same but have some clearer language. Mr. Anderson noted another option new rental licenses could qualify for a Type II license with a review at the one-year mark. This is the preference of the Housing Commission. The license would be changed if the property did not meet the property code violat ion or validated nuisance police calls for service for a Type II rental license. The rental license would then be adjusted to the new license type that the property qualifies for. This option would require additional changes to the City Code. This could cause some confusion with the applicant due to the issuance of a two - year rental license but doing an inspection during the one-year period. It would be easier to change it to a Type III rental license. Mr. Anderson stated the third option would be for the new construction properties to qualify for a Type II license. Lastly, an option would be for a property to qualify for a Type IV license. This would require the license to be renewed at three months along with a full inspection. Mr. Anderson pointed out Staff brought the new construction rental licenses to the Housing Commission for review on July 18, 2023. During the Housing Commission meeting, Staff explained the City ordinance regarding new rental licenses citing that the ordinance allows for a Type II license. There were concerns about tenants refusing to call the police for fear of retaliation. There was no consensus on a recommendation to the Council. However, there was some support to review the police nuisance calls for service at a new property after one year and then to adjust the license if necessary. Councilmember/Commissioner Lawrence-Anderson noted the desire of the Housing Commission to do a one-year check-in was for the City to provide resources to the property if needed. There are new construction projects coming up, and they need to get a handle on the licensing. Councilmember/Commissioner Lawrence-Anderson pointed out that between Sonder House and 2/26/24 -7- DRAFT Sonder Point, hundreds of new units were added. She asked how many new inspectors were hired. Mr. Anderson stated a rental inspector hasn’t been added in several years. Councilmember/Commissioner Lawrence-Anderson stated an additional hire should be considered in the upcoming budget. If the City is increasing the number of units, they need to have the appropriate Staff. She added she would like to know if there have been improvements at Sonder House and Sonder Point. Mayor/President Graves stated she hasn’t heard additional complaints from the tenants at Sonder House, but that doesn’t necessarily mean the issues have been resolved. She stated it would be beneficial to do a one-year check-in if there is Staff available. The responsibility lies in the management of the building and should be reviewed. Mr. Anderson stated Staff is doing a hard look at revenue for the upcoming budget year and will propose some Staff changes. PENDING LIST FOR FUTURE WORK SESSIONS UPCOMING ITEMS • Memorial Policy • Special Assessment Policy/Franchise Fees (referred to Financial Commission) • Beautification and Public Art Commission • New and Repeat Type IV Rental License Review (referred to Housing Commission) • Food Truck Ordinance/License • Emerald Ash Borer Policy Review (referred to Park & Rec Commission November) • Opioid Settlement • ARPA Funds • Grants: Revenues & Expenses • Purchasing Policy • Interveners Impact • Revisit Resolution 2021-73 • Planning Application Process ADJOURNMENT Councilmember/Commissioner Butler moved and Councilmember/Commissioner Jerzak seconded adjournment of the City Council/Economic Development Authority Work Session at 8:27 p.m. Motion passed unanimously.