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HomeMy WebLinkAbout2024.09.09 CCM WORK SESSION9/9/24 -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 SEPTEMBER 9, 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 9:02 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, Economic Development Manager Ian Alexander, Community Development Director Jesse Anderson, Planner and Zoning Administrator Ginny McIntosh, City Attorney Siobhan Tolar and Assistant City Manager/City Clerk Barb Suciu. CONCEPT PROPOSAL: 6500 CAMDEN AVENUE NORTH (JAMBO AFRICA) Economic Development Manager Ian Alexander introduced himself to the Council. He explained that 6500 Camden Avenue North is 1.62 acres and zoned for PUD/C2. The 2040 Land Use Guidance is Commercial. The lot is vacant and used as a Metro Transit Park & Ride lot. Neighboring uses are restaurants, commercial, and retail. He showed an aerial image of the site. Mr. Alexander pointed out the site is somewhat difficult to work with due to the location of storm, water, and sewer lines in the center. There has been $685,000 invested in the property. The property was acquired through a land exchange with Topgolf to facilitate its development. Mr. Alexander noted the average land value of nearby commercial and retail properties is $9.14 per square foot. The lowest value is $6.25 per square foot at the former bowling alley and $12.55 for the strip mall to the north of the property. These values are based on County assessments. The values of the closest properties are $10.00 per square foot at Topgolf, $12.55 per square foot at the strip mall, $12.50 per square foot at Speedway, $12.50 per square foot at Holiday, and $10.00 per square foot at Metro Dental. Mr. Alexander stated the applicant is requesting a concept review. The concept review process is an opportunity for the City Council/EDA to review a development concept prior to a formal proposal from an applicant, provide comments, ask questions, and indicate whether or not the City would be open to the project. Concept reviews are helpful for projects that would involve EDA-owned land or public subsidy, as they provide insight to City staff and the developer as to 9/9/24 -2- the City Council/EDA’s level of interest, and any specific concerns related to a project. A concept review is considered advisory and is non-binding to the City and the applicant. Mr. Alexander added no formal action can be taken at a work session, and the City Council/EDA is not being asked to vote on the proposal; however, as the Subject Property, which is located at 6500 Camden Avenue North, is owned by the City’s Economic Development Authority (EDA), City staff and the applicant are asking for feedback and direction so as to inform any next steps. If the applicant chooses to submit a formal application to the City to proceed, it would be subject to the full City review process, as with any other development application. Mr. Alexander stated that the concept is to construct a building of up to 10,000 square feet. The current proposal from Jambo Africa is a 5,700-square-foot restaurant and bar with a 1,200- square-foot outdoor patio. Parking would be on-site for staff, customers, and truck delivery circulation. He showed an image of a potential structure. Mr. Alexander stated the offer is $500,000 or 1.62 acres. It would be a cost of $7.09 per square foot. The EDA acquired the former Target for $9.10 per square foot and Topgolf acquired the former movie theater for $10.00 per square foot. The proposed terms are $10,000 earnest month, 30 days of due diligence to study the site, and an additional 90-day approval period to seek City approvals for the use, which includes time to process a Planning Commission application. The buyer would be responsible for obtaining City approvals and conducting due diligence. Mr. Alexander showed a table with future tax estimates of the proposed use. He pointed out that his role is to increase the tax capacity of the City, and the proposed use would do just that. The site is difficult for many uses, but the proposed concept could work. Councilmember/Commissioner Butler asked what the planned use is for the various portions of the building. Adrian C. explained their goal is to create a versatile space to allow for a number of uses such as spoken word, evening events, or daytime events. Councilmember/Commissioner Jerzak noted his support of the concept. He pointed out that the Highway 252 project could wipe out the project in total. He would hate to see money and effort go into the project only for it to be eliminated with road construction impacts. Mr. Anderson stated the north parcels would be impacted by Highway 252 changes, but the portion with the proposed use would not be impacted according to the current information Staff has. Nonetheless, Staff is aware of the possibility and is continuing to look into the concern. Councilmember/Commissioner Kragness congratulated Jambo Africa on their success and thanked them for their contributions to Brooklyn Center. Councilmember/Commissioner Lawrence-Anderson noted her agreement with Councilmember/ Commissioner Jerzak. She looks forward to Jambo Africa expanding in the community. She asked if the business had adequate funding for such a large build. Mr. Alexander confirmed the project is fully funded. 9/9/24 -3- Mayor/President Graves asked if the location of the utilities was considered by Jambo Africa and the site planning professionals. Mr. Alexander stated any building on the site would have to be on one side or the other of the utilities. The requirement is very clear to the applicant. He added a number of concepts have come forward for the site, but none of them were nearly as sophisticated or well-fitting as the proposed use. Mayor/President Graves agreed the location would be great for Jambo Africa and noted her support of the concept proposal. The majority consensus of the City Council/EDA was to support the concept proposal. Councilmember/Commissioner Lawrence-Anderson reiterated the importance of Staff continuing to monitor the potential impacts of the Highway 252 project. They want to set the business up for success. HENNEPIN RECYCLING GROUP (HRG): CITY-WIDE ORGANICS COLLECTION City Manager Reggie Edwards introduced the item and invited Tim Pratt to continue the presentation. Tim Pratt explained he is the Administrator of the Hennepin Recycling Group (HRG) which includes Brooklyn Center, Crystal, and New Hope. Mr. Pratt pointed out organics are food scraps and non-recyclable paper. Organics is the most abundant item in residential trash. The materials would be collected in the kitchen and disposed of in an organics bin to be collected on the curb each week. The materials are composted then used in landscaping, road projects, and fertilizer. There are abundant local markets for organics. Mr. Pratt stated the County implemented an ordinance requiring cities to address organics recycling to be in place by 2022. Some haulers began charging more for recycling, which is a direct violation of a State statute. Starting January 1, 2024, haulers started charging all clients for organics recycling regardless of participation in organics recycling. Mr. Pratt noted the rates set by haulers range from $3.50 to $7.50 per month. Haulers are not committed to promoting the organics recycling service. From January 1, 2022, to January 1, 2024, 746 residents signed up. Since the beginning of 2024, 2,221 HRG residents signed up, which is about 10 percent HRG residents. Mr. Pratt added five additional collection trucks are on the street each week and each truck is collecting less than a full load. Mr. Pratt stated the HRG Board is proposing amending the recycling contract to add an organics recycling service. The cost would be $2.90 per household beginning April 1, 2025. He noted the cost would increase slightly once 11 percent of HRG households signed up. Communications would go out to HRG participants through postcards, newsletters, social media, CCX, and events. The carts would be rolled out the week of March 24, 2024. The City would continue offering the drop-off location and hosting an annual compost pick-up day. 9/9/24 -4- Councilmember/Commissioner Kragness asked how often the $2.90 would be charged. Mr. Pratt stated it is a monthly charge. Councilmember/Commissioner Kragness asked if there is a cap for the monthly charge included in the contract. Mr. Pratt stated there is a scale based on the percentage of individuals who sign up. It is $2.90 monthly when participation is under 11 percent, then $3.75 up to 21 percent, $4.50 up to 31 percent, $5.25 up to 41 percent, and so on. The price will not reach $7.50. At some point, there will be another truck and another driver. Councilmember/Commissioner Kragness asked why people wouldn’t sign up for the $2.90 charge instead of the $7.50 charge. In that scenario, the charges would increase up to the $7.50 level should everyone switch over. Mr. Pratt stated the $7.50 is subject to increase as well. Councilmember/Commissioner Kragness asked what the ceiling is for monthly costs. Mr. Pratt stated the ceiling is at 50 percent; no other area has surpassed 50 percent participation. The contract is only for two more years. Pricing can be negotiated at that time. Councilmember/Commissioner Kragness stated the communication is working against them because they are advocating for lower costs while promoting the program which would increase the cost of participation. Mr. Pratt noted there would be cost savings if participants were to decrease the size of their regular trash cans. Councilmember/Commissioner Jerzak pointed out special bags must be used for organics recycling. He asked what the cost was for the special bags. Mr. Pratt stated organic materials do best in compostable bags. A box of 25 bags at Target is $8.00. Paper shopping bags can also be used as an alternative. Councilmember/Commissioner Jerzak noted some people aren’t interested in additional sorting and other don’t have room for another cart. Mr. Pratt stated it is a myth that regular recycling is disposed of with garbage. A hauler could be fired for improper disposal. Also, recycling is a commodity that haulers make money off of while garbage is not. Mayor/President Graves asked for more details on how organics recycling could allow for decreases in cost elsewhere. Mr. Pratt stated there could be fewer emissions with the use of fewer trucks. Organics that decompose in landfills give off heat-inducing gasses and contribute to global warming. It is also difficult to dispose of organics through burning. Councilmember/Commissioner Lawrence-Anderson asked if the charges were part of the garbage bill or the water bill. Mr. Alexander confirmed the charge is on the garbage bill. If the change were implemented, the charge would be added to the quarterly water bill instead. Councilmember/Commissioner Kragness asked how participants would be notified of increased charges as people sign up. Mr. Pratt explained the contract reviews the participation every six months and adjusts the rates from there. There wouldn’t be random monthly rate changes. Dr. Edwards requested unique communications strategies be employed to reach the diverse communities within Brooklyn Center. Mr. Pratt noted his support of the concept. 9/9/24 -5- Dr. Edwards added the item won’t return to the Council/EDA for additional approval if consensus is reached at the present meeting. Mayor/President Graves stated she would like to receive an update on its implementation. Mr. Pratt noted the City sets the utility rates, so the Council/EDA would consider the cost of organics recycling hauling as part of the rates discussion. Assistant City Manager/City Clerk Barb Suciu asked if there would be public comment collected prior to a decision being made. Mayor/President Graves noted the only change besides a lower rate would be that households couldn’t decide who would pick up their organics. There won’t be an opportunity for public comment. Councilmember/Commissioner Kragness asked if the trash haulers would be notified of the change and know to eliminate the charge. Mr. Pratt confirmed the haulers would be informed. There was a similar initiative in Plymouth that has been successful. The majority consensus of the City Council/EDA was to institute a City-wide organics recycling collection through HRG. PENDING LIST FOR FUTURE WORK SESSIONS UPCOMING ITEMS • Memorial Policy - 2025 • ARPA Funds • Grants: Revenues & Expenses • Purchasing Policy - 2025 • Planning Application Process - October • Commission Members • Property Tax • Permanent Safety and Violence Prevention Commission - September/October ADJOURNMENT City Council/Economic Development Authority Work Session adjourned at 9:43 p.m.