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HomeMy WebLinkAbout2025.10.27 CCM STUDY10/27/25 -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 STUDY SESSION OCTOBER 27, 2025 CITY HALL – COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor April Graves at 6:00 p.m. ROLL CALL Mayor April Graves, Councilmembers Teneshia Kragness, Kris Lawrence-Anderson, Dan Jerzak, and Laurie Ann Moore. Also present were City Manager Reggie Edwards, Planning Manager Ginny McIntosh, City Clerk Shannon Pettit, and City Attorney Siobhan Tolar. CITY COUNCIL MISCELLANEOUS DISCUSSION ITEMS Councilmember Jerzak said he had two corrections to the minutes: the ages quoted were supposed to be 14 to 18, not 4 to 18. The other was a misspelling of the word Otsego. Councilmember Kragness said she had a minor correction from October 13, on page 41 of 546, in the third paragraph; the word "seconded" should have been added to approve the motion. Councilmember Moore said she will have comments on some other items, but after reviewing the weekly email, the priorities listed were discussion items related to determining purchasing policy. She stated that two years ago, she was on the Finance Commission and had an unfounded complaint filed against her. She stated that two years ago, she and her fellow Commissioners presented a purchasing policy that was never acted on. She noted that she would like to see the purchasing policy as a Council agenda item before the end of the year. Councilmember Moore continued that she would like some clarification around a part-time Customer Service Representative position that was open. She asked if this position was being added for the end of 2025 or proposed for 2026, and the Council had not heard about it. Councilmember Moore noted that she was very ill and missed the last meeting, and wanted to thank the Fire Department, Chief Berg, and the Inspectors for coming up with a comprehensive list for food truck inspections. 10/27/25 -2- DRAFT Mayor Graves asked Dr. Edwards if he had any information regarding the Purchasing Policy. Dr. Edwards stated that the only item discussed by the Finance Commission is the Purchase Policy section related to P-card purchases, which will be presented to the Council in November. He noted that the open position Councilmember Moore mentioned is not new and is already accounted for in the 2025 budget. Councilmember Moore asked if the First Amendment Retaliation talking point is being rescheduled, as it was taken off the mentioned priorities. Dr. Edwards confirmed that the date to discuss that item is to be determined. Mayor Graves said she thought there was some clarity around that discussion when in conversations about the Council’s Code of Respect. Councilmember Moore asked if the Purchasing Policy would come before the Council after the Finance Commission has consulted with Finance Director Angela Holm. Dr. Edwards responded that the only new portion of the Purchasing Policy is the section regarding P-cards, as there was previously no policy regarding credit card use. Mayor Graves said Councilmember Moore’s question was regarding whether there would be a discussion about P-cards included in the presentation regarding the Purchasing Policy. Dr. Edwards confirmed that there would be a discussion around the new P-card policy. Councilmember Moore said there was extensive conversation about purchasing limits, and asked Dr. Edwards to confirm with Ms. Holm that all of that would be discussed as well. Dr. Edwards noted that he would verify everything with Ms. Holm and would report back to the Council. Councilmember Lawrence-Anderson said her expectation was a complete overhaul of the Purchasing Policy because it has not been looked at intensely in decades. Mayor Graves said it would be beneficial to hear the game plan for the Finance Commission's review of the larger policy, as well as the timeline. Dr. Edwards said he attended the last Finance Commission meeting and spoke to them regarding that, and said the Commission cannot get through the entire policy in one sitting and will plan on going over the policy in sections over the next year. Mayor Graves said there is always the option of individual Councilmembers reviewing and bringing forward a section to the Council for discussion. Dr. Edwards said some portions of the Purchasing Policy are operational policy, and some are legislative policy. Councilmember Lawrence-Anderson asked if it was possible to get a fresh copy of the Purchasing Policy. Dr. Edwards confirmed he could get that for them. Councilmember Kragness added that it does take a significant amount of time to go through the entire policy, while coming up with something in writing addressing P-cards, and addressing what came up in the audit. She noted that this is why the priority shifted from the original request to address what was in the audit to getting a policy in place. Councilmember Moore said she would like to remind the Council that two years ago, she was part of the Finance Commission and went through the Purchasing Policy at that time in great detail. 10/27/25 -3- DRAFT She stated she is not in favor of waiting until the Finance Commission, which is an advisory board, has a quorum to make recommendations to the Council. She noted that she would like Dr. Edwards to talk to Ms. Holm and look at what the recommendations were two years ago, and bring that forward. She continued that the Council is a steward of the taxpayer dollars, and she is not willing to wait until there is a quorum of the Finance Commission, or any Commission for that matter, because the Council is the elected representative. Councilmember Jerzak stated he would like a date assigned to bring what has been completed of the Purchasing Policy to the Council. Mayor Graves reiterated that Dr. Edwards said the presentation of the Purchasing Policy was going to be in November. She n oted that part of the materials given to the Council prior to that presentation should include the entire policy for review, which Councilmember Lawrence-Anderson already requested. CITY MANAGER MISCELLANEOUS DISCUSSION ITEMS NORTHSTAR YOUTH ACADEMY COUNCIL YOUTH DIALOGUE Dr. Edwards explained that the NorthStar Youth Academy is a youth leadership program that took place last week in Brooklyn Center. He noted that one of the group’s requests was to engage in dialogue with the Council and learn what it is like to be an elected official. He said this would be similar to what the Council has done in the past on Youth Government Day. He stated that if the Council were interested, this would take place on November 10, starting at 5:30 p.m. Councilmember Kragness said she thought this was a great idea and would be in favor. Councilmember Jerzak stated he thinks it is valuable for the exchange and potential future civil engagement. Councilmember Moore noted that for this event to happen from 5:30 p.m. to 6:30 p.m. would cut into the Council's Work and Study Session time, and anything that needs to be discussed would have to be tacked on to the end of the meeting. Dr. Edwards responded that, typically, any Study Session issues revolve around issues that the Council would like to raise, and Work Session items would not be pushed back but would still happen at the end of the meeting, as they are always intended to. Councilmember Moore said it would push back half an hour of items that could be discussed during the Study Session. Dr. Edwards confirmed that she is correct. Dr. Edwards said if there were issues that the Council wanted to discuss during the Study Session, this youth group would eat into that time. Councilmember Moore asked what the hour with the youth group would entail and if that had been received in any of the communications with them. Dr. Edwards said it would consist of a round table and dialogue with the group. He noted that the group consists of 13 youth and would probably take an hour to get through two to three questions. 10/27/25 -4- DRAFT Councilmember Moore thanked Dr. Edwards for the information and for wanting to get this meeting done right after they finished their event. Councilmember Jerzak suggested the youth group provide the Council with a list of questions or items that they would like to discuss ahead of time. Dr. Edwards said he can provide that suggestion, and if the Council has any questions for the youth group, they could be provided to them as well. AUDIT PROPOSAL REVIEW COMMITTEE Dr. Edwards explained that this item is centered around a recommendation for an Audit Firm to approve. He noted that there is a process and Review Committee that is made up of a few Finance Commission members, Councilmembers, as well as the Finance Director and the City Manager. He asked if the Council would like to identify which Councilmembers would like to be on the Review Committee in order to get the process of finding a new City Audit Firm started. Mayor Graves asked who the Commission members are who volunteered to be on the Review Committee. Dr. Edwards responded that the Chair and Vice Chair of the Finance Commission have volunteered. Mayor Graves said she would like to make the recommendation for Councilmember Kragness and Councilmember Jerzak to be on the Review Committee. Mayor Graves asked if there were any objections. No one on the Council wished to object. Dr. Edwards noted that the Work Session presenter was prepared to present now if time permitted. Mayor Graves agreed that the presentation should happen during the Study Session. Dr. Edwards noted that the Bonding Tour, which is scheduled on October 30 at 4:30 p.m. at the Opportunity Site, with the Senate Bonding Committee, is a great opportunity to showcase Brooklyn Center. He stated the focus of the visit is infrastructure. Mayor Graves said she has already asked Councilmember Kragness to attend in her place, as she has a scheduling conflict. She encouraged other Councilmembers to attend to show support as well. Councilmember Jerzak asked for a calendar invite for that event. Dr. Edwards confirmed he would send a calendar invite. HOTEL ZONING DISCUSSION Dr. Edwards stated that the Council is aware that Brooklyn Center has had some challenges in the past regarding extended stay hotels regarding zoning. He stated that in order to support and help hotels moving forward, there needs to be a conversation regarding zoning, and later, a discussion 10/27/25 -5- DRAFT will happen about the hotel ordinance itself. Dr. Edwards introduced Planning Manager Ginny McIntosh to present this item. Ms. McIntosh noted that most of the hotels in Brooklyn Center are centrally located in the City on either side of I-94 and I-694 off Freeway Boulevard, James Circle, and Earl Brown Drive. She noted that there are 10 hotels and all of them, with the exception of three, are located within a planned unit development (PUD). She said that when referencing a planned unit development, each property is set up very specifically for the development area. She noted that the Fairfield Inn and Embassy Suites have shared factors but are separate PUDs. She explained that other businesses like Motel 6, Suburban Studios, and an office building are in a PUD together in that area. Ms. McIntosh gave some history and context about the hotels in the area that were devastatingly impacted by COVID-19. For 2025, the Minneapolis-St. Paul Metro Hospitality Investment Forecast, which is put out each year, stated that fewer than 250 hotel rooms were under construction at the start of 2025. This is the lowest number of hotel rooms that the hotel industry has seen in the metro area since 2010. Hotel occupancy rates are expected to rise, but will still be below pre-pandemic levels. She noted that the current decline is attributed to declining Canadian tourism, inflation, tariffs, economic uncertainty, and increased labor costs throughout the industry. This not only includes hotels, but also restaurants and other entertainment industries. For 2025, the average daily rate for hotel rooms was $136; for Brooklyn Center, the average daily rate is less than half that, coming in at $50 to $60 a night. Ms. McIntosh explained the zoning aspect for hotels in Brooklyn Center. She noted that PUDs were established in the City in the 1990s as a means to promote flexibility in land development and redevelopment. Until 1990, certain uses like restaurants and hotels were not acknowledged uses in the City's former I-1 Industrial Park district. This area lies north of I-94 and I-694 and on either side of Shingle Creek Parkway and Freeway Boulevard, where Baymont Inn, Comfort Inn, Country Inn & Suites, Suburban Studios, and Motel 6 are located. She noted that a concern at the time was that certain uses were inappropriate for development on certain I-1 properties, and a special (now conditional) use permit did not protect the interests and concerns of the City. At that time, PUDs were considered an appropriate path for considering non-industrial or service and office use type buildings. Ms. McIntosh stated that the Fairfield Inn and Suites and Embassy Suites are both zoned Planned Unit Development/Service-Office (PUD/C1A) District and are located near the City’s Heritage Center. The underlying C1A District allowed for service and office uses as well as “transient lodging and associated uses.” This C1A District was retired in January 2023. The City's new Unified Development Ordinance (UDO) contains provisions under Section 35-2103 (General District Regulations) that allow PUDs in existence prior to adoption of the UDO to remain there and are subject to all prior zoning regulations, agreements, conditions, and standards applicable to the PUD. 10/27/25 -6- DRAFT Ms. McIntosh continued that historically, PUDs in Brooklyn Center were narrowly tailored to allow for a particular use and that use only. In most cases, the City approvals and any recorded PUD agreements, or Declarations of Covenants and Restrictions (DCR), typically contain provisions that require an interested party to apply for and secure either an amendment to the PUD plan and conditions approved by City Council, or a rezoning of the subject property that allows for the requested use. She noted that Super eight, Travelodge, and Quality Inn are located off James Circle North and are not located within PUDs. They are zoned a business mixed-use (MX- B) district, which effectively replaced the I1 district, but with more flexibility. Ms. McIntosh stated that the MX-B District allows for live or work dwellings, libraries and art galleries, nonresidential education uses such as ALCs, business and trade schools, medical and health uses, animal hospitals, commercial urban agriculture, brewpubs, micro-wineries, micro- distilleries, eating establishments, indoor recreation fitness centers and clubs, grocery stores, manufacturing, wholesale trade, artisan production and sales, and auto repair shops. City Staff would estimate that the majority of the City's hotels are no longer functioning in their originally intended capacity and have transitioned to alternate uses such as temporary housing for homeless populations, unofficial shelters, and care facilities. These shifts can be attributed to factors such as prolonged economic challenges, declining tourism, government contracts, and the demand to house vulnerable populations. Ms. McIntosh explained that following communication with the Brooklyn Center Police Department, it was discovered that some of the hotels are the largest contributors to the City’s calls for service each month, surpassing other property types like apartment complexes and commercial areas. In fact, two of the City’s hotels rank in the top five addresses for calls for service from the Police Department in the last year. Hotels are a key part of any City’s tourism infrastructure, economic vitality, and overall image. When hotels become associated with criminal activity or develop a perception that they are unsafe, it deters visitors and reduces tourism and business revenue. This association can also negatively impact the ability of a City to court new developments and businesses. Ms. McIntosh stated that Community Development has had discussions with people who are interested in developing a business in the City, and they have voiced major concerns about doing so because of the hotels. She noted that City Staff has been in communication with some individuals over the past months, who have expressed interest in converting the usage of some of the City's hotels to non-hotel uses. Some hotel operators have also expressed their interest in selling. She noted that, as most of the City's hotels are located in PUDs that allow for no other use without amending the approvals and likely a rezoning of the property. She noted that at some point, with reduced occupancy and trouble staying afloat, property owners will want to sell. She stated that City Staff are requesting feedback from the Council for guidance on what to say to property owners who call and ask what can be done. She asked if the Council was open to exploring the conversion of existing hotels to non-hotel uses. Mayor Graves said she would open this question up for discussion with the Council and thanked Ms. McIntosh for her presentation. 10/27/25 -7- DRAFT Councilmember Jerzak said he would not be open to any of these conversions because he does not believe the City has the bandwidth or capacity to responsibly handle some of the issues that might come, including staff, Police, Fire, and other prevention aspects. He noted that generally if use changes, the property owner subleases the property to non-profits, which can come with additional problems regarding enforcement. He stated he is compassionate to the owners’ plight, but in his experience, the biggest benefit of changing usage of a property goes to the owners who want to bail on the property. He noted he would not be in favor of conversions of existing hotels, and for any specific uses, suggested he would have to review them one at a time. He said that these hotels came in zoned as hotels, and that is what they should remain. Councilmember Moore asked to clarify the three hotels that are not already zoned as the MX-B District. Ms. McIntosh stated that of the 10 hotels in the City, three are zoned MX -B and are off James Circle. Those three hotels are Super 8, Travelodge, and Quality Inn, and are the only ones that are zoned to allow for other uses. She explained that the other seven hotels are in their PUDs and are locked in to hotel-only use. Councilmember Moore said the Council has discussed acquiring, selling, and demolishing properties before, but the City has plenty of land that has not been developed. She asked if there was some sort of cost to acquire the seven properties that are limited to hotel-only use. Ms. McIntosh said to her knowledge, not all of the hotels have reached out to the City regarding selling. Councilmember Moore said it is important not to piecemeal together an approach in terms of hotels and rezoning different areas to accommodate. She asked if the Council opts not to allow zoning conversions, will there continue to be challenges with these hotels. Ms. McIntosh said, as far as Community Development goes, she wants to be on the offensive with this. Ms. McIntosh noted the Department has not heard from all the hotels but is aware of the challenges that the hotels are having, and when someone does call, she would like to have some type of response. She noted that, inevitably, some of the hotel owners in the area will eventually sell them, especially the lower-flag hotels like Super 8, because they will run out of other options. Ms. McIntosh stated that the calls she has received regarding potential uses for different locations include multi-family residential with commercial, senior assisted living facilities, drug rehab treatment centers, and a semi-truck stop and gas station. Ms. McIntosh said when City Staff gets those calls, they have to tell the owner that the PUD only allows that property to be a hotel, but that is why this conversation is happening to see if the Council would ever consider those properties to be allowed to be something else. She noted that at some point, no matter how badly the Council may want it to be a hotel, the reality might be that the property is not working as a hotel, and the owner may then need to offload it. Ms. McIntosh continued that if the property is offloaded to a new buyer, and that buyer does not check on the PUD and use for the property, then the City is in a whole different situation. Ms. McIntosh noted that each building is different and its use would be conducive to certain uses. She stated that a lot of the hotels that are extended stays or suites are of interest, because of the extra plumbing that would make an easy conversion for multi-family use. 10/27/25 -8- DRAFT Councilmember Moore asked about not expanding the PUD use, if the Council is limiting the ability for the owner to sell the property. She noted the same problem with the Opportunity Site, and that it has not sold and has been sitting for many years. She stated that if changing the zoning would help the property sell, then she would be in support of a change, or at least a presentation on what the best zoning would be in order to sell the property. Councilmember Kragness said she preferred the idea of the hotels remaining hotels, but recognizes that times have changed. She noted that she believes there are enough empty spaces in the City to accommodate the nuances of other options. She said she was not in favor of changing the existing hotels, but believes there do need to be changes, and there are resources to make those changes. Ms. McIntosh stated that the City is oversaturated in hotels right now, and the occupancies are not penciling in. She noted that the hotels that do have occupancy at 100 percent are not for hotel use. She said the other question to consider is if some of these hotels are on redevelopment sites, and if the Council would be open to that, or if all hotels need to stay zoned as hotels. Councilmember Lawrence-Anderson said she could not get behind the whole barrage of ideas that are out there. She stated she understands the industry has changed, but she thinks City Staff can be more creative and bring some other options to the Council to better fill those spaces. Ms. McIntosh asked if a hotel owner is asking for a conversion of use, and if the Council would prefer it come as a concept review first. Mayor Graves said she thought that would be a wise way to move forward. Mayor Graves noted that she recognizes the struggles of some of the hotels that are present in the City. She stated there does need to be some type of flexibility so the City does not end up with empty hotel buildings that can never be sold as anything else. Mayor Graves continued that she has empathy for the people who do not have a place to stay and are transitioning out of the hospital and need somewhere to go, as seen before by the Council. She noted that the Council needs to think critically about how to support services in the City. Mayor Graves said she was open to the potential of multi-family commercial use of these hotels because she likes the idea of bringing in more mixed-use developments that bring in people and business. She noted that she thought the Council might be more open to that, too, versus the concept of a drug rehab treatment facility, which would require the City to help pay for it. Mayor Graves reiterated that the City is capable of putting in place organizations that can do a good job and help those who need services to get them back on their feet. She said the Council is not against supporting people who are in need, especially if there are well-managed organizations in place to do the work. Councilmember Jerzak stated he likes the idea of the concept plan review, which would allow the Council to review ideas for the hotels and not automatically dismiss them. Mayor Graves asked Ms. McIntosh if that gave her enough clarity to move forward. Ms. McIntosh said it gives her some direction, as she normally receives calls about the hotel use, as the owner is trying to close the deal to sell the property, and each property is so unique. Mayor Graves said 10/27/25 -9- DRAFT Ms. McIntosh could propose that the hotel owners put together a pitch for the Council to see if the Council would be supportive. Ms. McIntosh said she does not want to bring forward a ton of concept reviews if she does not need to. She explained that oftentimes, if the use is not currently permitted in that PUD or there is a restriction or covenant on that property, then the buyer does not want to spend the money, especially when architectural plans or civil plans cost hundreds of thousands of dollars. She noted that having the initial concept review to get a feeling from the Council would be helpful. Dr. Edwards said that at some point, the Council will have to establish a broad policy for zoning that would impact everyone, instead of hearing concept plans and treating the issue individually. Mayor Graves said City Staff could also come to the Council with potential uses to get feedback from the Council that way, as well, instead of waiting for concept plans to come forward. Ms. McIntosh said the majority of people who are calling about these properties have a very specific alternative use in mind. She said it would be helpful to have a list of uses and redevelopment options that the Council would be comfortable with, in order for her Department to have those conversations with the individual or broker who calls. Once that individual or broker has that information, they can then choose to bring forward a concept review for the Council, if that is something they want to pursue. Councilmember Moore said she does not want the Council to restrict what can and cannot come to the City, which is why she is in favor of changing the zoning regulations. She noted that if the state had not tripped over itself while legalizing marijuana, maybe Opportunity Site One could have been used for an indoor cannabis farm. She continued that it would be great if citizens could live, play, and work right in Brooklyn Center instead of having to go somewhere else. She said different parts of Brooklyn Center have become a wasteland, and she does not want to inhibit the opportunity for new businesses to come because the City is stuck with old zoning regulations. ADJOURNMENT Mayor Graves adjourned the Study Session at 6:55 p.m.