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HomeMy WebLinkAbout2024.03.11 CCM EDA/WORKSESSION3/11/24 -1- 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 MARCH 11, 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 Pro Tem Lawrence-Anderson at 7:54 p.m. ROLL CALL Mayor/President Pro Tem Kris Lawrence-Anderson and Councilmembers/Commissioners Marquita Butler, Dan Jerzak, and Teneshia Kragness. Mayor/President April Graves was absent and excused. Also present were City Manager Reggie Edwards, Community Development Director Jesse Anderson, City Attorney Jason Hill, and City Clerk Barb Suciu. SPECIAL TIF LEGISLATION FOR THE OPPORTUNITY SITE UPDATE City Manager Reggie Edwards introduced the item and invited Jason Aarsvold, EDA Project Manager with Ehlers, to continue the presentation. Mr. Aarsvold explained there is a need for special legislation as Tax Increment Financing (TIF) use and flexibility will be necessary for the financial feasibility of the project. The Alatus Phase 1 project is in the City’s existing TIF District No. 7. Some increment is already being collected which started the clock on the district’s duration. There will likely be less than 18 years of increment left by the time Alatus moves forward. Based on the previous financial review of the project, that will not be enough time to achieve all of the objectives. Mr. Aarsvold noted many buildings throughout the Opportunity Site have or will be torn down. The TIF Statute requires districts to be established before building demolition. Mr. Aarsvold stated the team kicked off the process to request special legislation in Fall 2023. A Bill was drafted to meet the City’s needs and was sent to the City’s Senator and Representative for review and discussion. Senator Pha engaged with the City’s team and proposed alterations to the Bill to earn support. Mr. Aarsvold noted on March 4, 2024, Senator Pha introduced S.F. No. 4586: A bill for an act relating to taxation; tax increment financing; providing special tax increment financing authority for the city of Brooklyn Center. The bill allows for the creation of one or more redevelopment TIF districts within the Opportunity Site, even if those areas cannot qualify based on existing statutory requirements. The proposed legislation also provides flexibility for spending tax increments 3/11/24 -2- throughout the Opportunity Site to cover areawide costs such as infrastructure, stormwater, and parking. Mr. Aarsvold explained if this bill passes, the City will be able to decertify parcels from TIF District No. 7 and create a new redevelopment TIF district for Alatus ’ phase 1 project. This will help with the financial feasibility of that project. In addition, the City would be able to create additional redevelopment TIF districts, as needed, throughout the entire Opportunity Site even in areas where buildings have already been removed. This will provide an effective tool for the City to meet its goals within the Opportunity Site. Mr. Aarsvold noted next steps include continuing to work with the Senate and House to advance the Bills and City representatives will testify and answer questions at hearings. Councilmember/Commissioner Jerzak asked if a companion bill is in the House. Mr. Aarsvold stated they haven’t had an opportunity to meet with Representative Vang or the lobbyist to create a Bill for the House. Councilmember/Commissioner Jerzak pointed out at the September 11, 2023 City Council/EDA meeting, that the developer stated they would not be able to build unless the interest rates decrease. They may need to remove the City-owned business incubator to make the project work. He asked if the project could be altered to make it more palatable for funding. Dr. Edwards stated Staff is working through the suggestion as a possibility. Councilmember/Commissioner Jerzak added there is urgency to write a Bill for the House due to the timing of the legislative session. Mr. Aarsvold noted Staff is in regular communication with the developer, and they are hopeful about the project. The Bill does give the City authority to create new districts through 2030. Councilmember/Commissioner Jerzak asked if there is a backup plan in the scenario the Bill doesn’t go through. Mr. Aarsvold stated the backup plan is to bring the proposal back to the next legislative session. Staff is continuing to look for other financial resources for the project. Councilmember/Commissioner Kragness noted that special legislation was needed no matter what. Mr. Aarsvold confirmed that this is correct. REVIEW OF THE DRAFT OPPORTUNITY SITE MASTER PLAN Dr. Edwards introduced the item and invited Community Development Director Jesse Anderson to continue the presentation. Community Development Director Jesse Anderson explained since 2019, City Staff have been working on progressing a Master Plan for the 80-acre Opportunity Site. From the beginning, this Master Plan intended to shift development expectations within the Opportunity Site towards 3/11/24 -3- community serving in their process and outcomes. As such, the buildout of the Opportunity Site is intended to be a collaborative endeavor between the City and developers who seek to join the City in improving the quality of life for all who call the Brooklyn Center home. He introduced Mike Thompson, a representative of Bolton & Menk, and asked him to continue the presentation. Mr. Thompson showed the schedule of the Opportunity Site schedule. They are currently working on completing the Master Plan. From there, they will work to finalize some details. He explained the Master Plan includes an Executive Summary, a Vision for a New Downtown, a Public Realm, Access and Connectivity, Neighborhood and Economic Development, and an Implementation Plan. There are also a number of Appendices included. Mr. Thompson invited Andrew Dressner to continue the presentation. Mr. Dresdner explained the land use for the site is ultimately two neighborhoods, referring to primarily housing. There are a series of complementary and compatible uses which will exist between the two neighborhoods. The residences are arranged in a way to allows for a variety of building types and densities. Mr. Dresdner pointed out the function of transportation is beyond circulation. There are various forms of roads such as neighborhood streets, a parkway, a garden street, and a main street. They prioritized walkability and bike use. He showed graphics of each street type. Mr. Thompson added open space is one of the first things they did to plan the area. There are key public space opportunities throughout the site with two larger parks, one of which is more active and one is more passive. The regional stormwater system is a critical sustainability feature, and they plan for it to also be an opportunity for community gatherings. Streetscaping is also thoughtful to promote togetherness in the neighborhood. Mr. Thompson stated they will continue to refine the Master Plan. From there, they will submit a Master Plan for consideration. After a recommendation by the Planning Commission, there would be a public hearing with Council/EDA action. Councilmember/Commissioner Jerzak asked if the completion of the infrastructure is still anticipated. He also asked for an update on the grant process. Mr. Anderson stated the intention was for Alatus to build the infrastructure. Funding sources are coming in and being sought out to further fund the infrastructure. Resurrecting Faith Ministries did not get the last set of grants, but it would not have been used for infrastru cture. Project for Pride in Living has received some grants with coming deadlines. Councilmember/Commissioner Jerzak asked what the City can do to move the project forward. Breaking ground will be very impactful. Mr. Anderson stated Staff is looking at a plethora of options. Resurrecting Faith World Ministries and Project for Pride in Living are both awaiting infrastructure to start their planning efforts. Staff is working toward solutions to support Alatus with infrastructure efforts. Prior to her time on the City Council/EDA, Councilmember/Commissioner Kragness thought the project was further along. She asked what needs to be done to get the process moving as it is very 3/11/24 -4- slow-going. Mr. Anderson stated the Master Plan is a guiding principle rather than a development plan. If there is groundbreaking on Phase One, then another developer will likely show interest in the Target site or other properties. Councilmember/Commissioner Jerzak asked if other developers have shown interest if Alatus can’t deliver. Also, he asked if Staff has been proactive to reach out to potential developers. Mr. Anderson stated Staff has been engaging with developers about portions of the site that remain unplanned. However, the developers are in the same position as Alatus currently. There have been conversations about starting something at the Target site as it requires less infrastructure. Councilmember/Commissioner Jerzak stated interest rates are unlikely to change before the coming election. If it does change, it is predicted to only decrease a half-point. Mr. Thompson noted his agreement with the desire to get the project moving. The Master Plan is an effort to remove some barriers for potential developers, which is an attractive quality in a project area. Councilmember/Commissioner Jerzak stated he is interested in moving projects if it is financially feasible. He encouraged the Staff and Consultants to make every effort to promote progress. PENDING LIST FOR FUTURE WORK SESSIONS UPCOMING ITEMS • Memorial Policy • Special Assessment Policy/Franchise Fees (referred to Financial Commission) • Beautification and Public Art 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 • Group Homes ADJOURNMENT Councilmember/Commissioner Kragness moved and Councilmember/Commissioner Jerzak seconded the adjournment of the City Council/Economic Development Authority Work Session at 8:29 p.m. Motion passed unanimously.