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HomeMy WebLinkAbout2025.03.10 CCM WORK3/10/25 -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 MARCH 10, 2025 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 9:11 p.m. ROLL CALL Mayor/President April Graves and Councilmembers/Commissioners Kris Lawrence-Anderson, Dan Jerzak, Teneshia Kragness, and Laurie Ann Moore. Also present were City Manager Reggie Edwards, Community Development Director Jesse Anderson, Economic Development Manager Ian Alexander, and Assistant City Manager/City Clerk Barb Suciu. ACTIVE DISCUSSION ITEMS 5951 EARL BROWN DR TAX FORFEITURE SALE (FORMER BROWN COLLEGE SITE) Dr. Edwards introduced Economic Development Manager Ian Alexander. He stated that the site is 6.46 Acres, zoned MX-C Commercial Mixed Use, is currently vacant, and was previously used as a commercial site. He stated that this is adjacent to the city-owned former Target site, with a combined acreage of 15.51. Mr. Alexander stated the site will be available for public sale and will be open from March 7, 2025, until April 18, 2025. During Phase I of the public sale, the minimum will be $2.36 million. If no offers are received before April 9, 2025, they will enter Phase II where the minimum bid will be $500,000. The EDA anticipates limited interest during Phase I and they anticipate competing offers if the sale moves to Phase II. Mr. Alexander pointed out the 15.26-acre site which was formerly Sears sold for $1.5 million. It was over $100 per acre due to extensive demolition and remediation costs. Staff do not recommend making an offer during Phase I of the public sale. Instead, Staff recommends making an offer if the sale moves to Phase II. Mr. Alexander showed an aerial image of the site. He agreed with Councilmember Jerzak’s frustration with the City buying the former Target site. The City now must figure out how to use 3/10/25 -2- DRAFT the former Target site. The Target site and Brown College site are both prepared for development. The Opportunity Site has no infrastructure to move forward. Mr. Alexander reiterated Staff recommends making an offer for 5951 Earle Brown Drive if the public sale moves to Phase II. Staff also recommends using funds from more than one Tax Increment Financing District. Mayor/President Graves pointed out there could be more discussion at a future Study Session or a Closed Session to allow for more extensive, detailed questions. Councilmember/Commissioner Jerzak stated there are likely Non-Disclosure Agreements (NDAs) already in place. He asked who would own the facility. Mr. Alexander stated there aren’t any NDAs. The City would not own the facility, and that is not the goal of the project. He has spoken with Chief Flesland about the potential for a satellite office closer to the Opportunity Site. Councilmember/Commissioner Jerzak asked why a private developer wouldn’t purchase the site themselves. He asked if putting the potential funds into infrastructure for the Opportunity Site would be a better opportunity. Mr. Alexander explained most of the City’s money is tied up in housing projects and Phase I of the Opportunity Site. It was shocking when funding was pulled from the Department of Transportation. Therefore, the City is hoping to put money into something other than affordable housing. The City is looking to prepare the site for the best use. He spoke to someone who is interested in a large daycare and event space. However, Staff is looking for a larger project that will generate more money. Councilmember/Commissioner Jerzak asked if the sports facility is a for-profit entity. He asked if Brooklyn Center would be asked for more money. Mr. Alexander explained he wouldn’t recommend buying any sites in Brooklyn Center except for recreational uses. There isn’t an appetite for bonding, and they need to look for opportunities to offer Tax Increment Financing (TIF). Councilmember/Commissioner Jerzak asked if Staff has spoken with the church regarding the daycare. Community Development Director Jesse Anderson explained they are close to a purchase agreement. Staff anticipates a purchase agreement to be received the next day. Councilmember/Commissioner Moore asked if the TIF will disappear if it isn’t used. Mr. Anderson explained TIF Districts 2 and 3 are fairly old, and the money will stay in them. It doesn’t need to be returned. TIF District 5 has some more restrictions, but it can be pooled when it is ready. The $4 million from Alatus would have gone back into the TIF District. They can use some Districts to pay into other TIFs. Councilmember/Commissioner Moore asked if the City would be the landlord. It doesn’t seem to benefit the City. She asked why others weren’t interested in developing the land. Mr. Anderson explained Minneapolis has difficult processes. The agreement is only to discuss it. Minneapolis 3/10/25 -3- DRAFT wouldn’t enter into such an agreement without a plan. It is likely there isn’t a political avenue for them to put a sports facility within their own city. Councilmember/Commissioner Moore asked if Staff has signed off on the possibility. Mayor/President Graves asked for those in the audience to remain quiet. Dr. Edwards pointed out the memorandum of understanding (MOU) allows for a conversation, but there are no commitments. Councilmember/Commissioner Kragness thanked Staff for their creativity. More options for youth activities would be beneficial for Brooklyn Center. Mayor/President Graves asked if the Council/EDA would like another opportunity to discuss the topic. Councilmember/Commissioner Jerzak asked if the offer is time-sensitive. Mr. Alexander stated it is worthwhile to discuss the concept further as long as they don’t discuss the specific offer. The issue with timing is to develop an idea and get everything aligned to make an offer in time. Mayor/President Graves stated she would like for the item to be placed in a future Study Session. ADJOURNMENT Mayor/President Graves moved and Councilmember/Commissioner Kragness seconded adjournment of the City Council/Economic Development Authority Work Session at 9:37 p.m. Motion passed unanimously.