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HomeMy WebLinkAbout2024.06.24 CCM REGULAR6/24/24 -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 24, 2024 CITY HALL – COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL The Brooklyn Center City Council met in an Informal Open Forum called to order by Mayor April Graves at 6:58 p.m. 2. ROLL CALL Mayor April Graves and Councilmembers Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Councilmember Marquita Butler was absent and excused. Also present were Community Development Director Jesse Anderson, Planning Manager Ginny McIntosh, Assistant City Manager/City Clerk Barb Suciu, Deputy City Clerk, Shannon Pettit, and City Attorney Siobhan Tolar. 3. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 4. INFORMAL OPEN FORUM Mayor Graves read the rules for the Informal Open Forum. Mayor April Graves opened the meeting for an Informal Open Forum. Sharon H. stated her husband is a veteran of the Vietnam War. They both live in Sonder Point Apartments. She is the president of the Resident Group. The residents were excited about the prospect of a new facility. There are guidelines to meet for Section 42, such as income. She got a job at HOM Furniture but had to quit due to the Section 42 guidelines. The rent was initially $1,370. Mayor Graves requested Ms. Harris wrap up her comments. Sharon H. stated they are now dealing with market-rate rent of over $1,600. There are gang violations, homelessness, broken cameras, filthy underground parking, and other issues. People have moved out due to the lack of affordability. She asked if the Council considered the restricted income of seniors when they approved Sonder Point Apartments. 6/24/24 -2- DRAFT Mayor Graves stated she has attended some apartment meetings and will work with staff to determine how else the city can help. Mary B. noted she was also present to speak on Sonder Point. She has seen seven different managers during her time living there. She received a non-renewal notice but could not pay the rent because the payment portal was shut down. After working with a housing advocate, they confirmed Sonder Point is at fault. Mary B. pointed out that the building is unsafe. Individuals from the Transit Center end up sleeping in their entryway. She has had law enforcement escort her from the building for her safety. The police regularly respond to the building, and cars are often broken into. Kevin S. explained that he supports any repairs or improvements to the Community Center. A pool is an excellent opportunity for folks to learn how to swim. The community rooms are small. New Brighton has a great Community Center. Councilmember Jerzak moved, and Councilmember Kragness seconded to close the Informal Open Forum at 7:14 p.m. Motion passed unanimously. 5. INVOCATION Councilmember Lawrence-Anderson shared a quote by Lucille Ball, "One of the things I've learned the hard way is it doesn't pay to get discouraged. Keeping busy and making optimism a way of life can restore your faith in yourself." She also shared a quote from Helen Keller, stating that optimism is the face that leads to achievement. Nothing can be done without hope and confidence." ADMINISTER CEREMONIAL OATH OF OFFICE Assistant City Manager/City Clerk Barb Suciu conducted the swearing-in of Police Chief Garett Flesland. He received his badge from his father and wife. Police Chief Flesland noted serving the City of Brooklyn Center is an honor and privilege. He thanked various law enforcement for their work and support. He also thanked family and friends for their support. Chief Flesland requested each city representative serve proudly, choose happiness, and be professional. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Lawrence-Anderson moved, and Councilmember Kragness seconded to approve the Agenda and Consent Agenda, as amended, and the following consent items were approved: 6/24/24 -3- DRAFT 6a. APPROVAL OF MINUTES 1. June 10, 2024 – Worksession 2. June 10, 2024 – Regular Session 3. June 10, 2024 – EDA/Work Session 6b. LICENSES MECHANICAL Admiral Radon Mechanical Services LLC 13816 Utah Avenue Savage 55378 Air Comfort Htg & A/C 19170 Jasper Street NW Anoka 55303 Eagle Ridge Plumbing LLC E7899 102th Avenue Colfax, WI 54730 Residential Heating and Air, Inc. 7454 Washington S. Eden Prairie 55344 Ty 's Heating and A/C LLC 12689 Zilla Street NW Coon Rapids 55448 INTOXICATING LIQUOR Hip Sing BBQ & Seafood 3419 Highlands Road RENTAL INITIAL (TYPE III – one-year license) 5930 Pearson Drive Elvis Osagie INITIAL (TYPE I – three-year license) 3001-3007 51st Avenue N Xue Yang 2820 67th Lane N Danmark Properties Llc 5906 Halifax Avenue N OLUBUNMI A AGUNBIADE RENEWAL (TYPE IV – six-month license) 6109 Beard Avenue N SIMONS REVOCABLE TRUST 2606 65th Avenue N Hpa Ii Borrower 2020-2 Llc 5301 France Avenue N Juniper Land Trust Llc 6/24/24 -4- DRAFT 5510 France Avenue N Iasis I LLC 6007 Girard Avenue N R&b Management I Llc 6618 Colfax Avenue N Dhanraj Khemraj 6749 Humboldt Avenue N Patrick Nguyen 7037 Fremont Avenue N Edwina P Mcgill RENEWAL (TYPE III – one-year license) 6331 Indiana Avenue N Ih3 Property Minnesota Lp 6412 Humboldt Avenue N Tou Yang 7085 Unity Avenue N I-chang Wen & Yanhua Sun RENEWAL (TYPE II – two-year license) 1200 67th Avenue N T H Morrow & R J Morrow 5000 France Avenue N M B & P S Nightingale 7215 Girard Avenue N Rht Girard Llc RENEWAL (TYPE I – three-year license) 4207 Lakeside Avenue N, #235 Ammar Abdulrahman 1207 65th Ave nue N Andy Ung & Leng Taing 1330 67th Lane N SIBILEV HOLDINGS LLC 1807 70th Ave nue N Rht Logan Llc 2806 65th Ave nue N A-jelil Abdella & N Said 6336 Beard Ave nue N Cosco Property I Llc 6424 Marlin Drive CJ Bright & QK Fank 6500 Willow Lane N Brett Hildreth 6737 Camden Ave nue N Ronald F Jasicki 6912 Unity Ave nue N Geri L Williams 7031 Humboldt Ave nue N Ih3 Property Minnesota Lp 6/24/24 -5- DRAFT SUNDAY SALES Hip Sing BBQ & Seafood 3419 Highlands Road 6c. RESOLUTION NO. 2024-67; TRANSFERRING LOCAL BOARD AUTHORITY OF APPEAL AND EQUALIZATION POWER AND DUTY TO HENNEPIN COUNTY ("OPEN BOOK") 6d. RESOLUTION NO. 2024-68; ACCEPTING BID AND AWARDING A CONTRACT TO HOSIER WORLDWIDE, INC, FOR DEMOLITION AND SITE WORK AT 6100 SHINGLE CREEK PKWY (FORMER TARGET SITE) 6e. RESOLUTION NO. 2024-69; IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT (LCDA) TRANSIT- ORIENTED DEVELOPMENT FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS FOR OPPORTUNITY SITE PHASE 1 INFRASTRUCTURE 6f. AN ORDINANCE NO. 2024-06; AMENDING THE MAYOR AND COUNCIL SALARIES FOR 2025 AND 2026 (FIRST READING) Motion passed unanimously. 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS None. 8. PUBLIC HEARINGS 8a. AN ORDINANCE NO. 2024-04; AMENDING CHAPTER 12 OF THE CITY RELATING TO NEW RENTAL LICENSED PROPERTIES AND NUISANCE ABATEMENT PROCESS – 2ND READING Assistant City Manager/City Clerk Barb Suciu introduced the item and invited Community Development Director Jesse Anderson to make the presentation. Community Development Director Jesse Anderson explained that the process would be similar to the vacant building's emergency abatement process. The process would remain the same with one final step added. If there is no compliance after several inspections, staff will issue an abatement order. The abatement order will give the property owner at least ten days to bring the property into compliance. If the property is not compliant, staff will hire a contractor to abate the violation. The costs for abatement would be specially assessed to the property taxes. Mr. Anderson pointed out there is an appeal process where the homeowner has several opportunities to appeal the property code violation, abatement order, and abatement fees. Per Cpde 6/24/24 -6- DRAFT 12-1202, the property owners will have five days from when the compliance notice is served to appeal. Mr. Anderson added there are proposed changes to the language in Chapters 12-900 to 12-1002 regarding the rental licensing program. The proposed changes are to clarify the language regarding new construction and existing properties applying for their first rental license. Based on the current language, it was unclear what type of license these properties would qualify for. The change for new construction properties will read more clearly and specify the type of license that new construction properties can obtain. It will read that new construction licenses will qualify for a Type II, Type III, or Type IV rental license. They will not be eligible for a Type I – 3-year license. Mr. Anderson stated the other change is with existing properties applying for their first license. It will read that existing properties applying for their first rental license only qualify for a Type II, Type III, or Type IV rental license. Councilmember Jerzak moved, and Mayor Graves seconded the opening of 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 Jerzak moved, and Councilmember Lawrence-Anderson seconded to approve the second reading and adopt ORDINANCE NO. 2024-04; Amending Chapter 12 of the City Code of Ordinance Amending Sections 12-901, 12-1201A, and 12-1206 of the City Code of Ordinances regarding rental licensing and building compliance orders. Motion passed unanimously. 8b. RESOLUTION NO. 2024-70; APPROVING AMENDMENTS TO, AND REISSUANCE OF, THE CREST APARTMENT'S MULTIFAMILY HOUSING REVENUE NOTE, SERIES 2021A Assistant City Manager/City Clerk Barb Suciu introduced the item and invited Ehlers Consultant Jason Aarsvold to make the presentation. Mr. Aarsvold explained to help finance the Crest Apartments, the EDA provided tax increment financing assistance, and the City of Brooklyn Center approved the issuance of up to $19,000,000 of tax-exempt conduit Housing Revenue Bonds for rehabilitation and new construction of the Crest Apartments. Bonds were issued as conduit revenue bonds secured solely by the revenues derived from a loan agreement executed by Brooklyn Center and the borrower and other security provided 6/24/24 -7- DRAFT by the borrower. The lender or bondholders provided the funds for the loan, and Brooklyn Center assigned its rights and obligations under the Loan Agreement to the lender. Mr. Aarsvold pointed out that the bonds issued for Aeon's project mature on June 28, 2024, and are intended to be repaid with separate financing from a permanent lender. Aeon needs more time to get this permanent financing in place; however, they requested an extension on their bonds. Their construction lender, Bridgewater Bank, has agreed to this. Ultimately, there is no impact on Brooklyn Center. However, since this is tax-exempt financing, the extension requires a public hearing and City approval. This hearing was properly noticed for June 24, 2024, to allow the City Council to consider the extension at this meeting. Mayor Graves asked how long the extension is for. Mr. Aarsvold stated the extension is for six months. Councilmember Lawrence-Anderson asked if the city has any risk in this manner. Mr. Aarsvold confirmed there is no risk to Brooklyn Center. Councilmember Jerzak moved, and Mayor Graves seconded the opening of 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 Jerzak moved, and Mayor Graves seconded to adopt RESOLUTION NO. 2024- 070; approving amendments to and authorizing the deemed reissuance of a conduit multifamily housing revenue note and amendments to documents in connection therewith (the Crest Apartments project). Motion passed unanimously. 9. PLANNING COMMISSION ITEMS 9a. RESOLUTION NO. 2024-071; REGARDING RECOMMENDED DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2024-006 SUBMITTED BY C ALAN HOMES LLC FOR RE-APPROVAL OF THE PRELIMINARY AND FINAL PLATS FOR ROBERTSON AND BREKKE BROOKLYN BOULEVARD ADDITION (6025, 6031, 6037, AND 6045 BROOKLYN BOULEVARD) Assistant City Manager/City Clerk Barb Suciu introduced the item and invited Planning Manager Ginny McIntosh to make the presentation. 6/24/24 -8- DRAFT Ms. McIntosh explained three items related to C Alan Homes on the Regular Session agenda. The EDA meeting also has an item related to C Alan Homes. C Alan Homes LLC requests re-approval of a preliminary and final plat for the Robertson and Brekke Brooklyn Boulevard Addition, initially approved by City Council under Planning Commission Application No. 2020-004 and City Council Resolution No. 2020-067. Said application also included requests for approval of a site and building plan and establishment of a Planned Unit Development for a series of seven triplexes and related site improvements on what was formerly land owned by the City of Brooklyn Center Economic Development Authority (EDA), and commonly addressed as 6025, 6031, 6037, and 6045 Brooklyn Boulevard. The south site is 1.65 acres. The sites are in the PUD/Neighborhood Mixed Use zoning district, and the future designation is Neighborhood Mixed Use. Ms. McIntosh noted although the applicant successfully purchased the property in late 2020, and a single Purchase and Development Agreement was executed for what were two sets of properties intended for a scattered site triplex development, the applicant and property owner ran into delays with the property, which was the first to go under construction. This was following a request by Hennepin County that the county quitclaim certain property contained within the plat for right-of- way purposes. This resulted in the need for a partial release of the Purchase and Development Agreement and Declaration of Restrictive Covenants and Quit Claim Deed for this property in March 2022. Ms. McIntosh stated that during this time frame, the applicant's lender stopped funding the project, and the applicant entered into two years of litigation to keep the development afloat. The request for re-approval of the preliminary and final plans is more imminent as the applicant and property owner recently entered into a voluntary foreclosure proceeding with a short redemption period. Ms. McIntosh stated the applicant has indicated that they are now in the process of re-financing the project and have partnered with developer Devan George; however, the preliminary and final plats require a re-approval from the city and the applicant will also separately require approval of an Amended Development Agreement as they are currently in default given the project was not completed within the timeframe outlined. Ms. McIntosh showed an overview of the plats and pointed out the issue with the triplexes being on one parcel. Approval of the replay would address the issue. She pointed out City Staff reached out to the Hennepin County Survey Division, and they confirmed they still have the plat information on file; however, because two years have passed since the initial approval, they would require updated, current title work, which the city also requires, as well as the most recent copy of the plat. Ms. McIntosh stated that as part of the 2020 application and review, it was requested that legal descriptions and easement vacations for all existing easements and certain vacations of existing public easements, as determined by the city, be submitted. The applicant shall also provide and 6/24/24 -9- DRAFT maintain a current title and title commitment abstract for the City Attorney and Hennepin County review. Ms. McIntosh noted that former Assistant City Engineer Andrew Hogg initially reviewed the plats and, provided a memorandum, and redlined a set of comments dated August 4, 2020. A 10-foot drainage and utility easement was noted as required for dedication around the entire property perimeter. An additional utility easement shall be dedicated to the plate to allow for any future maintenance of private water mains and sanitary sewers per Development Agreement requirements. The sidewalk will also need to be addressed. Ms. McIntosh showed the list of conditions of approval. The plats, trail easement, and other items are addressed. Ms. McIntosh added that due to the nature of the requests, a public hearing notice was published in the Brooklyn Center Sun Post on April 25, 2024. Mail notifications were sent to those property owners and residents near the Subject property, and a public hearing notice was uploaded to the city's website. A link to the public hearing notice was also published on the city's website and emailed to subscribers of the city's weekly events bulletin. City staff is in receipt of one public received by email. Ms. McIntosh noted that one public comment had been received before the May 9, 2024, Planning Commission meeting. The applicant requested the item be tabled until the June 13, 2024 meeting. A 60 -day extension letter was issued to the applicant on May 10, 2024, per MN Statutes Section 15.99. The public hearing continued at the June 13, 2024, Planning Commission meeting, where additional comments were received. Ms. McIntosh stated comments provided by the public regarding the C Alan Homes South Site included clarifying questions on how many buildings would be located on each lot, overgrown grass on the Subject Property and maintenance concerns, parking concerns, and frustration with the developer's financing and inability to finish construction on the South Site. These concerns were provided by residents residing near the C Alan Homes' North Site; no comments were provided by residents, businesses, or property owners in proximity to the South Site. Following the close of the public hearing on June 13, 2024, the Planning Commission recommended (3-2) City Council approval of the preliminary and final plats for the Robertson and Brekke Brooklyn Boulevard Addition. Councilmember Jerzak pointed out that he had read all of the comments received. The Planning Commission meeting didn't show a specific recommendation. He requested the resolutions be separated. It appears a foreclosure is still pending. No matter who owns the property, the plats must be cleaned up. Ms. McIntosh stated the item up for discussion is only the south site. Councilmember Jerzak thanked her for the clarity. Ms. McIntosh stated there is a title issue with the currently constructed triplexes. The issues with 6/24/24 -10- DRAFT the county were a surprise to the staff. Councilmember Jerzak asked if the development agreement stands, regardless of who owns the property. Ms. McIntosh confirmed that was correct. The EDA meeting will address the development agreement. Councilmember Jerzak asked why two Commissioners dissented with the recommendation. Ms. McIntosh stated their reason for dissent was unclear. Councilmember Lawrence-Anderson noted her concern with the close vote from the Commission. They heard more information from the applicant and the public than the Council will. Councilmember Kragness asked if any official agreements regarding financial backing were in place. Mr. Terry Robinson stated there isn't anything written down formally, but Devan George is working with the lender. The lender is working to support the project as they put the owner in a tough position. Mayor Graves asked about the change in the number of plats. Ms. McIntosh stated the recommendation is identical to the 2020 decision. Many of the Commissioners were not on the Planning Commission in 2020. It is ultimately a clean-up item at this point. The four parcels were supposed to be changed to seven parcels in 2020, but it wasn't properly recorded. Councilmember Lawrence-Anderson asked when the site would be mowed. Mr. Robinson stated they had someone mow recently, and it will require a second mow because the grass was so tall. He hasn't moved forward with a second mowing because he wasn't sure if he would continue to own the property. Mr. Robinson explained his desire to build in Brooklyn Center due to his history with the area. He didn't take any tax money, and he didn't attempt a high-density development. There wasn't an opportunity to address some issues raised by public commenters at the Planning Commission. The former Mayor requested some affordable units, so he did a favor by making 20 percent of the units affordable. All his money is invested in the project, and they want to bring tax dollars to Brooklyn Center. The units are rented out even though there isn't a completed building yet. Councilmember Jerzak asked if the project would likely be completed by December 2025. Mr. Robinson stated there is an 18-month timeline for the project once they start. Councilmember Jerzak pointed out there have been multiple complaints about the upkeep of the property and the lack of progress, though the applicant has alleged the lack of progress is outside of his control. The land is a blight on the main street. Mr. Robinson explained he is a custom home builder. He ran out of money and couldn't afford the developments he was doing throughout the State. There has been no money coming in on the lot. He finally got money to put into the site and used it to address the lawn. 6/24/24 -11 - DRAFT Councilmember Jerzak asked what happens if the item isn't approved. Mr. R obinson stated he didn't know what would happen. His friend is willing to put up $14 million to support the development due to their history. Mayor Graves asked for more information on the foreclosure. Ms. McIntosh stated that should the foreclosure go through, the lender will likely find another owner. It is unknown if it would be a developer or a contractor. The city wouldn't have a say in the matter. The affordability clause would disappear in the scenario of a foreclosure. Councilmember Lawrence-Anderson asked what was on the south site. Ms. McIntosh stated that two triplexes are close to being done. The applicant was hoping to get a Certificate of Occupancy, but there is an issue because of the lender. Councilmember Lawrence-Anderson stated she supports moving forward with the south site since it is almost complete, but not the north site. Councilmember Kragness pointed out the applicant has faced a lot of adversity but has remained resilient. She would like to see the site completed. Mayor Graves moved, and Councilmember Kragness seconded to approve RESOLUTION NO. 2024-71; approving Planning Commission Application No. 2024-006 for re-approval of the preliminary and final plat for Robertson and Brekke Brooklyn Boulevard Addition and, commonly addressed as 6025, 6031, 6037, and 6045 Brooklyn Boulevard, based on the findings of fact and submitted documentation, as amended by the conditions of approval in the resolution. Motion passed unanimously. 9b. RESOLUTION APPROVING A PLANNING COMMISSION APPLICATION NO. 2024-007 SUBMITTED BY C ALAN HOMES LLC FOR RE-APPROVAL OF THE PRELIMINARY AND FINAL PLATS FOR ROBERTSON AND BREKKE BROOKLYN BOULEVARD SECOND ADDITION (6921, 6927, 6933, AND 6939 BROOKLYN BOULEVARD) Assistant City Manager/City Clerk Barb Suciu introduced the item and invited Planning Manager Ginny McIntosh to make the Staff presentation. Ms. McIntosh stated the next item is the north site. Ms. McIntosh explained C Alan Homes LLC is requesting re-approval of a preliminary and final plat for Robertson and Brekke Brooklyn Boulevard Second Addition, which was initially approved by City Council under Planning Commission Application No. 2020-004 and City Council Resolution No. 2020-067. Said application also included requests for approval of a site and building plan and establishment of a Planned Unit Development for a series of six triplexes and related site improvements on what was formerly land owned by the City of Brooklyn Center Economic Development Authority (EDA), and commonly addressed as 6025, 6031, 6037, and 6/24/24 -12- DRAFT 6045 Brooklyn Boulevard. The north site is 0.88 acres. The sites are in the PUD/Neighborhood Mixed Use zoning district, and the future designation is Neighborhood Mixed Use. Ms. McIntosh noted there was only one development agreement for both properties. There were additional issues with Hennepin County's record of the property. She showed an aerial image of the site. It was approved for six parcels in 2020. Ms. McIntosh stated that the proposed preliminary and final plat would subdivide four lots into six new parcels to accommodate six triplexes. Former Assistant City Engineer Andrew Hogg initially reviewed the plats and provided a memorandum and redlined set of comments. A 10-foot drainage and utility easement was noted as required for dedication around the entire property perimeter. An additional utility easement shall be dedicated to the plate to allow for any future maintenance of private water mains and sanitary sewers per Development Agreement requirements. The sidewalk will also need to be addressed. Ms. McIntosh added that due to the nature of the requests, a public hearing notice was published in the Brooklyn Center Sun Post on April 25, 2024. Mail notifications were sent to those property owners and residents near the Subject property, and a public hearing notice was uploaded to the city's website. A link to the public hearing notice was also published on the city's website and emailed to subscribers of the city's weekly events bulletin. City Staff is in receipt of one public received by email. Ms. McIntosh pointed out two public comments had been received before the May 9, 2024, Planning Commission meeting. The applicant requested the item be tabled until the June 13, 2024 meeting. A 60-day extension letter was issued to the applicant on May 10, 2024, per MN Statutes Section 15.99. The public hearing continued at the June 13, 2024 Planning Commission meeting, where additional comments were received. Ms. McIntosh stated that comments provided by the public regarding the C Alan Homes South Site were included. Still, she was not limited to concerns regarding the foreclosure, parking needs, maximum occupancies in each unit, and overall maintenance of the Subject Property. Additional questions were addressed to City staff regarding the city's original intentions for the land, which was formerly owned by the City's Economic Development Authority, whether a traffic study had been conducted, any proposed street improvements to 69th Avenue North for the additional traffic, the ability for cars to navigate Lee Avenue North when other vehicles are present, and snow removal. Ms. McIntosh added a number of residents noted concerns with additional traffic given the number of children in the neighborhood, with one resident noting that they shut down the dead end of Major Avenue North and put out cones so children could play. The additional units would interrupt the neighborhood's gathering spaces. Additional concerns were raised regarding crime in the area, including the bus stop nearby, and that it didn't make sense to build luxury apartments across the street from a gas station with regular shootings. 6/24/24 -13- DRAFT Ms. McIntosh stated following the close of the public hearing on June 13, 2024, the Planning Commission recommended (1-4) City Council denial of the preliminary and final plats for the Robertson and Brekke Brooklyn Boulevard Second Addition. Staff only looks at Code requirements, and the application meets all City requirements. Therefore, the staff is recommending approval. Councilmember Jerzak stated that dislike from neighbors is not enough to deny an application. However, the denial by the Planning Commission and the difficult circumstances surrounding the site support a denial by the Council as well. Councilmember Lawrence-Anderson agreed she did not support the application. Councilmember Kragness asked if the two projects could be completed separately. Mr. Robinson stated the margins were already so low that he couldn't swing it with just one site. He would have built elsewhere if he were trying to make money. Councilmember Lawrence-Anderson stated she wants to see one project finished before starting another one. Mayor Graves asked if the 2020 Council received information on traffic impacts. Ms. McIntosh stated a traffic study was not triggered for this development. A study would be required if development were to add more than 100 cars. Ms. McIntosh pointed out that Hennepin County doesn't support curb cuts on Brooklyn Boulevard. The only option for access would be to combine with the gas station. However, that would eliminate parking for the gas station. At the most, there would be only emergency access to Brooklyn Center. Anything built on the lot would require Lee to access it. Councilmember Jerzak noted that the applicant wants to push through the issues and continue the project. However, a business is a for-profit effort. The site is difficult. Mayor Graves asked what the EDA intended to build on the site. Ms. McIntosh stated the EDA knew they wouldn't have access to Brooklyn Boulevard, so they had no intention of building single-family homes. Councilmember Kragness asked how the measure was approved in 2020 without anything changing since then. Ms. McIntosh stated that because the plats were not recorded within one year, they needed to be approved again for proper recording. Councilmember Kragness asked why the previous Council approved the use. Ms. McIntosh stated the proposal is on the lower end of the density options for the properties. An apartment building could be built on the property. There is a height allowance of 48 feet. 6/24/24 -14- DRAFT City Attorney Siobhan Tolar recommended the Council make clear findings as to why the application would be denied. Then, staff can create a document detailing the findings for the record. Mayor Graves stated that housing is needed, especially for different housing types. It is an excellent housing product that allows for lower-income units. Plus, any other development on the land is likely to create even more traffic. Mayor Graves moved, and Councilmember Kragness seconded to adopt a resolution approving Planning Commission Application No. 2024-007 for re-approval of the preliminary and final plat for Robertson and Brekke Brooklyn Boulevard Second Addition, commonly addressed as 6921, 6927, 6933, and 6939 Brooklyn Boulevard, based on the findings of fact and submitted documentation, as amended by the conditions of approval in the resolution. Councilmembers Jerzak and Lawrence-Anderson voted against the same. Motion failed. Councilmember Jerzak explained the totality of the circumstances, including the denial by the Planning Commission, no access to Brooklyn Boulevard displeased neighbors, and financial troubles; the development is not the best fit for the neighborhood nor the city. Councilmember Lawrence-Anderson noted her decision relied heavily on input from the Planning Commission, public comment, and issues with accessing Brooklyn Boulevard. She believes she supported the measure in 2020. She would prefer to see the other site completed first. Mayor Graves reiterated she and Councilmember Kragness supported the application. 10. COUNCIL CONSIDERATION ITEMS 10a. RESOLUTION NO. 2024-072; APPROVING AMENDED PERFORMANCE AGREEMENTS WITH C ALAN HOMES Assistant City Manager/City Clerk Barb Suciu introduced the item and invited Jason Aarsvold, Ehlers Consultant, to make the Staff presentation. Mr. Aarsvold explained the City Council entered into Performance Agreements for the C Alan Home Project located at 6025, 6031, 6037, 6045, 6921, 6927, 6933, and 6939 Brooklyn Boulevard. C Alan Homes also entered into Performance Agreements with the City requiring the construction of 13 total tri-plex rental units no later than December 31, 2022, for Project 1 and December 31, 2023, for Project 2. C. Allen commenced construction of the infrastructure and two tri-plex buildings in Project 1 but did not complete construction within the agreed-upon timeframe. In addition, the lender for the project has since initiated the steps necessary to foreclose on the property. Mr. Aarsvold stated that the staff had prepared two amendments that would change the dates of the projects. There are two separate motions, one for each of the projects. 6/24/24 -15- DRAFT Mayor Graves pointed out it would make sense for the Council to approve the First Amendment as they previously supported the south site. Mayor Graves moved, and Councilmember Lawrence-Anderson seconded to adopt RESOLUTION NO. 2024-72; approving an amendment to a performance agreement (6025, 6031, 6037, and 6045 Brooklyn Boulevard). Motion passed unanimously. Mayor Graves moved, and Councilmember Kragness seconded to adopt a resolution approving an amendment to a performance agreement (6921, 6927, 6933, and 6939 Brooklyn Boulevard) Councilmembers Jerzak and Lawrence-Anderson voted against the same. Motion failed. 10b. CITY COMMISSION APPOINTMENTS Mayor Graves pointed out that Ms. Suciu requested the Council wait to vote on the Cultural and Public Arts Commission appointments. Councilmember Jerzak moved, and Councilmember Kragness seconded to appoint Venus Coleman and Michael Donnelly to the Financial Commission and Alyssa Kuglin and Natalie O'Connor to the Housing Commission. Motion passed unanimously. 10c. RESOLUTION NO. 2024-68: ACCEPTING BID AND AWARDING A CONTRACT TO HOSIER WORLDWIDE, INC. FOR DEMOLITION AND SITE WORK AT 6100 SHINGLE CREEK PKWY (FORMER TARGET SITE) Mayor Graves pointed out that Councilmember Jerzak requested that the item be moved from the Consent Agenda. Community Development Director Jesse Anderson explained the eight bids received. Hosier Worldwide submitted the lowest total bid of $491,691.00; Inc. has the experience, equipment and capacity to qualify as the lowest responsible bidder for the project. Councilmember Jerzak asked if the bid included restoring the parking lot's lighting and the shared wall. He noted staff previously indicated insurance would cover a majority of the demolition. However, the item has a request for $750,000. He asked what the money would be used for. Mr. Anderson stated that the bid includes running electricity back to the parking lot lighting and restoring the shared wall. He listed more items included in the bid. There isn't a planned use of the Tax Increment Financing fund. The insurance will include all of the demolition and restoration work. No additional funding is needed. 6/24/24 -16- DRAFT Councilmember Jerzak asked if it is necessary to seed the property because people will likely drive around the lot. There would also be a requirement to mow it. Mr. Anderson stated that the staff hopes they could use the lot for events. Plus, the intention is to use as much insurance money as possible. Councilmember Kragness asked if the building is considered a total loss. Mr. Anderson noted it could have received around $2 million in repairs. There is also a need for $4 million of updates to ensure the Code is met. The goal was probably always for demolition and redevelopment, but they anticipated a developer would have paid for the demolition. Councilmember Kragness stated the building was underinsured, so there wasn't enough money to cover repairs. Mr. Anderson stated there could be substantial repairs to make the space usable for a tenant with the insurance amount. However, finding a tenant for such an ample space is difficult. Councilmember Kragness stated that $646,000 is not enough to cover $2 million in repairs. She asked why it was not considered a total loss. Mr. Anderson stated that the insurance company considered the building a total loss and that the coverage reflected the value of the building. Councilmember Lawrence-Anderson asked what the purchase price of the building was for the EDA. Mr. Anderson stated it was $3.6 million. Councilmember Lawrence-Anderson stated the building resulted in an overall loss. Mayor Graves moved, and Councilmember Lawrence-Anderson seconded to adopt RESOLUTION NO. 2024-68: accepting the lowest responsible bid and awarding a contract to Hosier Worldwide, Inc., for Demolition and Site Work at 6100 Shingle Creek Pkwy. Motion passed unanimously. 10d. RESOLUTION NO. 2024-69; IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT (LCDA) TRANSIT-ORIENTED DEVELOPMENT FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS FOR OPPORTUNITY SITE PHASE 1 INFRASTRUCTURE Mayor Graves pointed out that Councilmember Jerzak requested that the item be moved from the Consent Agenda. Community Development Director explained that the staff is looking to apply for grant funds to support the Opportunity Site. The grant can be reapplied for each year. Councilmember Jerzak noted that the Council authorized staff to look for alternative funding opportunities. If the city were to obtain the grant, it would still leave $4 million to find. Using $4 million of taxpayer money for the project is not reasonable. The developer has already reneged on his commitment. He asked for an update on the developer's status. Councilmember Jerzak added that the Grant Policy requires any grants to be returned to the 6/24/24 -17- DRAFT Council for review, but the grant criteria don't allow that. Mr. Anderson stated the developer is still in the same position financially. The grant would reduce Alatus' necessary contribution to infrastructure. Councilmember Jerzak explained he doesn't want to put $2 million into a site and then feel obligated to find the rest of the money elsewhere. Mayor Graves asked if the grant could only be used for the Opportunity Site. Mr. Anderson stated the grant is related to housing. If awarded, it expires around the end of 2026. The funds could still be used if a different developer were to step in on the Opportunity Site. The city would still need to meet the goals of the initial application submitted for the grant funds. Councilmember Jerzak asked if the grant is dedicated to affordable housing. Mr. Anderson stated that the application for the project would score well, whether or not the housing was affordable or market-rate. Councilmember Lawrence-Anderson pointed out that the first step of the Opportunity Site was intended to be market-rate housing. Mr. Anderson confirmed that the first building for Alatus would be market-rate housing. Councilmember Lawrence-Anderson noted her support of market- rate housing as the city needs to expand its housing options. Councilmember Kragness stated she isn't opposed to applying for the funds. However, the $2 million would only cover one-third of the project. If the $2 million were awarded, the Council would need to discuss options for the $2 million. Staff is prolonging the ask. Mr. Anderson stated that if Alatus obtained the funding, it would be planning to use TIF for infrastructure. The grant funds would reduce the potential financial burden on the city. Councilmember Kragness asked if another developer could use the funds. Mr. Anderson confirmed that if a project had similar goals, the grant funds could be used by a different developer. Councilmember Jerzak agreed he wouldn't mind submitting an application if it aligns with the Grant Policy. Mr. Anderson confirmed the funds would come before the Council if awarded. Mayor Graves moved, and Councilmember Lawrence-Anderson seconded to adopt RESOLUTION NO. 2024-69; identifying the need for Livable Communities Demonstration Account Transit Oriented Development funding and authorizing an application for grant funds. Motion passed unanimously. 11. COUNCIL REPORT Councilmember Kragness reported on her attendance at the following and provided information on the following upcoming events: 6/24/24 -18- DRAFT • Attended the Fire Academy graduation. • Served as a judge for the BrookLynk pitch competition. Mayor Graves reported on her attendance at the following and provided information on the following upcoming events: • Attended the Juneteenth celebration. • Stated she participated in a conference in California and toured a local Fire Department. • Noted her excitement for strides within the Community Development Department. • Will be attending a Mayor's Luncheon. Councilmember Jerzak reported on his attendance at the following and provided information on the following upcoming events: • Attended the Juneteenth celebration. • Attended the Fire Academy graduation. • Met with several constituents. 12. ADJOURNMENT Mayor Graves moved, and Councilmember Kragness seconded adjournment of the City Council meeting at 8:56 p.m. Motion passed unanimously.