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HomeMy WebLinkAbout2025.11.24 CCM REGULAR11/24/25 -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 REGULAR SESSION NOVEMBER 24, 2025 CITY HALL – COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor April Graves at 7:01 p.m. 2. ROLL CALL Mayor April Graves, Councilmembers Dan Jerzak, Kris Lawrence-Anderson, Teneshia Kragness, and Laurie Ann Moore. Also present were City Manager Reggie Edwards, City Engineer Lydia Ener, Principal City Engineer Hannah Delker, and City Attorney Siobhan Tolar. 3. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 4. INFORMAL OPEN FORUM Mayor April Graves opened the meeting for the purpose of Informal Open Forum and reviewed the Rules of Decorum. Sally F. stated that she grew up in Brooklyn Center, and she does not like that the City is not enforcing rules about street parking and parking on residents' lawns. She stated she also does not like that the Brooklyn Center is putting a bridge over by 62nd to go over to the river, because that will affect her neighborhood with noise and excess people. Sally F. stated that her kids and grandkids go to school in Brooklyn Center, and it is becoming bad in the City because no one is enforcing anything anymore. She stated she owns a box truck and is not allowed to park in her driveway, despite having a driveway built for it, but a neighbor down the street is allowed to park his box truck in his driveway. She said enforcement needs to be changed, as she was told she cannot park on her street, but other people can. Mayor Graves said City Staff could give Sally F. some clarity about the box truck parking issues. Nakisha S. called in via Zoom. She stated she is having some frustration regarding the special assessments. Mayor Graves said that the item was on the agenda, and Nakisha S. could not address that during the Informal Open Forum, but she could send the Council an email or come speak at the next Informal Open Forum. 11/24/25 -2- DRAFT Mayor Graves moved and Councilmember Moore seconded to close the Informal Open Forum. Motion passed unanimously. 5. INVOCATION Councilmember Jerzak quoted Shannon L. Alder, “The most important thing in communication is hearing what isn’t being said. The art of reading between the lines is a lifelong quest of the wise.” 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Lawrence-Anderson moved and Councilmember Moore seconded to approve the Agenda and Consent Agenda, as amended, with amendments to the minutes as stated during the Study Session, with a change to Consent Agenda item 6e. Resolution Establishing Interest Rates for 2026 Special Assessments, adjusting the interest rate from 6.6 percent to 5.15 percent, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. October 27, 2025 – Study Session 2. October 27, 2025 – Regular Session 3. October 27, 2025 – EDA/Work Session 4. November 10, 2025 – Study Session 5. November 10, 2025 – Regular Session 6. November 10, 2025 – EDA/Work Session 6b. LICENSES GASOLINE SERVICE STATION AM PM Corner Market-Winner Gas 6501 Humboldt Avenue North Speedway #3192 6950 Brooklyn Boulevard Speedway #4058 1901 57th Avenue North Speedway #4160 6545 West River Road LIQUOR LICENSE Centerbrook Golf Course 5500 Lilac Drive North Speedway #3192 6950 Brooklyn Boulevard Speedway #4058 1901 57th Avenue North Speedway #4160 6545 West River Road 11/24/25 -3- DRAFT Topgolf 6420 Camden Avenue North MECHANICAL Tim's Qualirt Plbg. Dba 225 County Road 81 A Aarts Quality Plbg Osseo 55369 TOBACCO LICENSES Brook Center Plus LLC 615 66th Avenue North Casey’s 2101 Freeway Boulevard Family Dollar 2105 57th Avenue North Sun Foods 6350 Brooklyn Boulevard RENTAL INITIAL (TYPE IV -- six-month license) 6412 Indiana Avenue CNH Investments INITIAL (TYPE III – one-year license) 7118 Ewing Avenue North Golden Yang INITIAL (TYPE II – two-year license) 5312 67th Avenue North Kong Meng Thao & Houa Vang INITIAL (TYPE I – three-year license) 6837 Beard Avenue North Crystal Tetu RENEWAL (TYPE IV – six-month license) 6915 Humboldt Avenue North Lynwood Pointe Llc 5637-39 Girard Avenue North Julian Guo & Ruofei Xu 6618 Camden Drive Hussain Khan 7121 Knox Avenue North Seigonghyr W Korti Jr RENEWAL (TYPE III – one-year license) 1312 68th Lane North Markon Rentals Llc RENEWAL (TYPE II – two-year license) 3800 Burquest Lane HENNEPIN RP FUNDING LLC 5706 Camden Avenue North Midwest Challenge Inc 11/24/25 -4- DRAFT RENEWAL (TYPE I – three-year license) 5843 Fremont Avenue North Fremont Llc 7111 Riverdale Road A & V Olson 3125 65th Avenue North SFR BORROWER 2021-2 LLC 5924 June Avenue North ADAM VANG 6800 Fremont Place North Sharon Mcgary 7001 Fremont Avenue North Hpa Borrower 2018-1 Ml Llc 6c. RESOLUTION OF SUPPORT FOR AN APPLICATION TO MINNESOTA BROWNFIELDS GAP FINANCING PROGRAM BY DURDUR BAKERY AND GROCERY INC., FOR 5951 EARLE BROWN DRIVE FOR ENVIRONMENTAL ASSESSMENT 6d. LOGIS JOINT FUNDING AGREEMENT 6e. RESOLUTION ESTABLISHING INTEREST RATE FOR 2026 SPECIAL ASSESSMENTS 6f. RESOLUTION ESTABLISHING 2026 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES 6g. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 2025-10, WATER TREATMENT PLANT CATWALK 6h. RESOLUTION APPROVING AN INTERFUND LOAN FROM THE STORM DRAINAGE UTILITY FUND TO THE WATER UTILITY FUND 6i. RESOLUTION AUTHORIZING CLOSING OF THE WATER TREATMENT PLANT CONSTRUCTION FUND TO THE WATER UTILITY OPERATING FUND 6j. RESOLUTION AUTHORIZING THE EXECUTION OF A LETTER OF ENGAGEMENT WITH A PUBLIC ACCOUNTING FIRM FOR AUDIT SERVICES 6k. RESOLUTION TO ACT AS THE LEGAL SPONSOR FOR THE BROOKLYN CENTER HEALTH, CULTURE, AND RECREATION 11/24/25 -5- DRAFT COMMUNITY CENTER PROJECT, AS CONTAINED IN HOUSE FILE (HF) NO. 670 6i. BROOKLYN CENTER 2026 LEGISLATIVE PRIORITIES 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 8. PUBLIC HEARINGS 8a. RESOLUTION ORDERING IMPROVEMENTS AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR IMPROVEMENT PROJECT NO. 2026-01, 02, 03, & 04 HUMBOLDT AVENUE (CR 57) RECONSTRUCTION Dr. Edwards said this project has come forth for a Public Hearing and introduced City Engineer Lydia Ener. Ms. Ener noted that this is the first of two Public Hearings tonight. These Public Hearings are meant to address the project improvements, and there will be assessment Public Hearings regarding these projects in January. Ms. Ener stated that the Humboldt Project is on schedule with the Improvement Public Hearing happening tonight, one neighborhood informal meeting, and the Staff have established the 2026 assessment rates and interest rates, which affect this project. Per the schedule, approving plans, advertising for bids, and awarding the project should happen in the spring of 2026, and begin construction in the summer of 2026, with completion expected in the fall of 2026. Ms. Ener noted that the project summary is being done in conjunction with Hennepin County and is being led by City Staff. She noted that the project goes from 57 th down to 53rd on Humboldt, and the City is proposing a full-depth reclamation that is a step above a mill overlay but a step below a full reconstruction, which is a very cost-effective way for areas where the pavement is in rough shape but the underlying subgrade is still within its useful lifespan. She said City Staff is also proposing a new concrete curb and gutter, pedestrian improvements, a shared-use trail, water main, sanitary sewer, storm sewer, and lighting improvements. Ms. Ener noted that the existing roadway is 36-feet wide, and was reconstructed in 1966 and 1969. It has a deteriorated bituminous curb and a concrete sidewalk. The proposed improvements include pavement full-depth reclamation, new concrete curb and gutter replacement, curb bump outs and roadway narrowing, pedestrian improvements, and a bituminous shared use trail and sidewalk, along with replacement of all existing light fixtures, and spacing is adequate. Ms. Ener explained that the water main and sanitary sewer were installed in 1952 and 1966. She said improvements include doing a full replacement of the water main, including hydrants and gate valves, and replacement of service lines up to the right of way. The sanitary sewer will also be replaced with new manhole concrete structures for both storm and sanitary, and replacement of 11/24/25 -6- DRAFT sanitary service lines up to the right of way. Ms. Ener continued that the existing storm sewer was installed in 1952, and it has far passed its useful life span. She said City Staff has televised the condition of the sanitary sewer and manholes, and is proposing a full replacement of the storm sewer with new precast concrete manhole structures. This is one of the areas that City Staff is working very closely with Hennepin County and the Watershed on requirements for this roadway. Ms. Ener explained that City Staff held a neighborhood meeting back in October ahead of the feasibility report. She noted that three people attended the meeting, representing two properties, and City Staff answered questions on the assessment process timeline for construction and access for properties during construction. She said that the City does require contractors to maintain access at the start and end of each day to houses, with the exception immediately following the concrete curb and gutter, where people will not be able to drive over that new concrete for seven to 10 days. She said if there are any access concerns, City Staff works directly with the property owner to make sure everybody has safe and adequate access. Ms. Ener continued that the bulk of the project will be funded by county MSA, which is different than the City's MSA, which is Minnesota state aid. She noted that because this is a county road, it is simply being done by the City to facilitate a lot of the resident and property owner interactions, but a significant portion of this project is being funded by the county, along with special assessments and funds from the Sanitary Sewer Utility fund, Water Utility fund, and Street Light Utility fund. The project total is currently $4.4 million, and will change through final design and bidding. Ms. Ener said she would briefly discuss the assessment area and calculations, and based on the City assessment policy, the project cost and type are what influence what people pay. The majority of the project will get a per-unit assessment rate, and that was just determined in the Consent Agenda, setting those assessment rates for 2026. This project will get the full depth reclamation assessment amount, which is a middle-of-the-road assessment. She noted that corner-lot properties that were previously assessed for the Bellevue project are not assessed again for this project. Ms. Ener noted that there are different payment options for the special assessments to make sure it is flexible for the residents. The first option is to either pay in full or make a partial payment with no interest between April 15 and September 30 of 2026. The second option is to pay in full or a partial payment with interest from October 1 to November 14, 2026. The third option is to pay in installments with property taxes over a 10-year period starting in 2027, with a 5.15 percent interest rate. Ms. Ener stated that partial prepayments can be accepted by the City. If the project is approved, a letter will be sent to property owners for an Assessment Hearing held in January 2026 at a regularly scheduled Council meeting. She said that deferment is always available for residents who are over 65 and meet income requirements, and can contact Engineering to discuss those options. Ms. Ener read the recommended actions to the Council, starting with opening a Public Hearing for the ordering of the improvements, taking public or Council input on the improvements, closing the Public Hearing, and taking into consideration comments before making a motion to adopt the resolution. 11/24/25 -7- DRAFT Mayor Graves moved and Councilmember Moore seconded to open the Public Hearing. Motion passed unanimously. No one wished to address the Council. Mayor Graves moved and Councilmember Moore seconded to close the Public Hearing. Motion passed unanimously. Mayor Graves asked if there would be stripes on the road. Ms. Ener explained that part of the project is partially a state aid requirement on whether or not the City stripes the road. She noted that schematically, because of the width and the state requirements for the road to be narrowed, there can only be parking on one side of the road. Councilmember Moore moved and Councilmember Lawrence-Anderson seconded to approve a RESOLUTION ordering the Humboldt Avenue (CR 57) Reconstruction Project No. 2026-01, 02, 03, & 04 and authorizing preparation of project plans and specifications. Mayor Graves asked if she had to clarify the interest rates before voting. Ms. Ener said the interest and assessment rates have already been set. Motion passed unanimously. 8b. RESOLUTION ORDERING IMPROVEMENTS AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR IMPROVEMENT PROJECT NO. 2026-06, 07, 08, & 09, JOHN MARTIN DRIVE IMPROVEMENT PROJECT Dr. Edwards stated that the presentation will continue as part of the 15-year plan for road construction. He introduced new Principal City Engineer Hannah Delker to present this item. Ms. Delker explained that a lot of the information regarding the John Martin Drive project will be similar to the Humboldt project. She stated that there was a neighborhood information meeting held on October 6, and the City Council received a feasibility report on the 27th, and assessment rates were established today, along with the interest rate, and now the Public Hearing for the project will be opened at tonight's meeting, and Assessment Public Hearings will be held in January with construction beginning next summer. Ms. Delker gave a brief overview of the project, which is a primary surface improvement project with some minor utility and lighting improvements. The street improvements include full-depth reclamation of pavement, spot curb and gutter replacement, and spot apron replacement. The utility improvements include sanitary, storm sewer, and gate valve casting replacement within the roadway. The lighting improvements include new conduit installation, and all improvements have 11/24/25 -8- DRAFT been coordinated with future improvements to the Opportunity Site and any potential MnDOT Trunk Highway 100 improvements. Ms. Delker stated that the current roadway is 50 feet wide and was last constructed in 1998. The proposed improvements are the full-depth reclamation, but will not change the width of the roadway. Replacement of curb and gutter will be done as needed, along with the aprons as well. There will be some pedestrian improvements to comply with ADA requirements and improve accessibility in this area. The lighting improvements are primarily new conduit, and the remaining lighting improvements will be made with a separate area-wide project. Ms. Delker explained that the existing water main was installed in 1969, and the pipes are eight - inch diameter CIP. The proposed improvements include gate valve casting replacements within the roadway. These improvements have been proposed in coordination with future development replacements to avoid redundancy with potential changes to the water main alignment and capacity needs, as potential development is seen in this area. The existing sanitary and storm sewers were also installed in 1969, and the pipes are eight-inch diameter VCP, and the storm pipes are 12 to 48-inch diameter RCP. There were television and visual surveys conducted to observe the condition of these utilities. The proposed improvements are the casting replacements within the roadway in the curb line. A neighborhood meeting was held for this project on October 6, with one individual in attendance representing three properties. Information was given on proposed improvements and the schedule. Questions and comments were taken from the resident regarding the assessment process, the timeline for construction, and access to properties during construction. Mr. Delker explained that this is a state aid project, and is not a county project like the Humboldt project. This project, including the commercial special assessments, comes out to a total cost of $1.13 million, which is subject to change as the scope of the project narrows. Ms. Delker explained the assessment area and calculations for this project. The properties that are considered for assessments on this project are all C2 commercial and industrial properties. The assessments are calculated based on the City assessment policy, and based on cost as well as project type and property area. Ms. Delker discussed the payment options for the special assessments, which are the same as those for the Humboldt project. She noted that there are three payment options: the first is to pay in full with no interest between April 15 and September 30, 2026; the second is to pay in full or make a partial payment from October 1 to November 14, 2026, with interest beginning on October 1. The third option is to pay in installments with property taxes over a 10-year period starting in 2027, with the 5.15 percent interest rate. Partial payments can be accepted by the City, and if the project is approved, a letter will be sent to property owners for an Assessment Hearing in January 2026. She noted that any questions or comments can be directed to the Engineering Staff. Ms. Delker read aloud the recommended actions of the Council to open the Public Hearing, take input from any residents, close the Public Hearing, and consider comments before adopting the resolution. 11/24/25 -9- DRAFT Mayor Graves thanked Ms. Delker for her presentation and asked if there were any questions from the Council before opening the Public Hearing. Councilmember Jerzak asked to see the map that showcased the specific properties that would be assessed for this project. Ms. Delker confirmed that she could. Councilmember Jerzak asked if one of the properties that would be assessed for this project is the mall. Ms. Delker said it would be that entire parcel, and Staff calculations take into account the frontage, and there is a different percentage applied based on the portion of the parcel that is directly adjacent to the project. Councilmember Jerzak asked if the City is assessing the Target building for this project, which is empty. Ms. Ener answered that because that building is part of an EDA property, rather than being a City park, it is assessed in the same fashion that everybody else would be. She noted that City Engineers have worked in coordination with Community Development on this project. Councilmember Jerzak said one of his concerns is the urgency of the project, because nothing has been established for the Opportunity Site, although it was alluded to that this project aligns with the Opportunity Site improvements. He noted that the majority of the businesses this project would affect are minorities, and they are already struggling. He asked what the average assessment would be per property for this project, and said the businesses affected may not see the value in this project compared to what they have to pay for their assessments. Ms. Ener responded that these assessments are done per square footage, and there is a significant difference between the property at 5900 and the property at 5901; two of the three highest assessments do not go outside business properties; they are EDA-owned lots. Councilmember Jerzak said he understood that there are nine properties that this project would affect, and this project will cost over a million dollars. He noted that this is one of the reasons he is so against acquiring additional vacant properties that sit for long periods of time and end up with these types of assessments. Mayor Graves moved and Councilmember Moore seconded to open the Public Hearing. Motion passed unanimously. No one wished to address the Council. Mayor Graves moved and Councilmember Moore seconded to close the Public Hearing. Motion passed unanimously. Councilmember Moore moved and Councilmember Lawrence-Anderson seconded to approve a RESOLUTION ordering the Improvement Project No. 2026-06, 07, 08, & 09, John Martin Drive Improvement Project, and authorizing preparation of project plans and specifications. Councilmember Jerzak voted against the same. Motion passed. 11/24/25 -10- DRAFT Mayor Graves asked if the City Engineers have been discussing porous asphalt for any City projects. Ms. Ener said those types of specialty items are difficult to use on City projects, and are frequently proprietary materials that are difficult to bid on due to fair bidding laws. Ms. Ener said this is similar to CIPP lining, which, 15 years ago, almost no cities used because there were only two companies that produced CIPP lining. Now that more companies produce it, Brooklyn Center uses CIPP lining frequently. Ms. Ener said that with the porous asphalt and the difficulty in sourcing and maintaining it, City Staff has not looked at using it too much. Mayor Graves asked if using it is on the City Engineer's radar. Ms. Ener confirmed that it is, and it is a frequent topic at the fall conference for the American Public Works Association, but cities cannot be early adopters of something new that might not work out, and City Engineers have to be conscious of what the maintenance would be on a product like that. Mayor Graves asked Ms. Ener to explain what porous asphalt is for people who do not know. Ms. Ener explained that there are porous concretes and pavements that have a sponge-like appearance with holes in them that allow water to drain through, so they do not count towards your impervious pavement surface. Ms. Ener noted that she has seen it used in trial run applications at a large park in St. Louis, where it was used along a small strip of edger where vehicle wheels do not sit, and it allows water to drain through it. It also allows a lot of debris to get trapped inside of it and has to be vacuumed out with a large-scale vacuum truck. Ms. Ener noted that it is a really cool environment tool to be used in the right settings, such as park applications and other small pedestrian areas that do not get heavy vehicle traffic. Mayor Graves thanked Ms. Ener and Ms. Delker for the information and their presentations. 9. PLANNING COMMISSION ITEMS 10. COUNCIL CONSIDERATION ITEMS 10a. RESOLUTION AWARDING THE SALE OF $6,180,000 GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 2025A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT Dr. Edwards noted that the Council has previously heard about this topic, as far as bond sales and planning are concerned. He introduced Consultant Jason Aarsvold with Ehlers. Mr. Aarsvold explained that he was there to discuss the sale of bonds related to several different utility improvement projects in the community. He noted that he has been working with City Staff over the last two months to bring this bond issue forward. There were several steps involved with this process, one of which was to have a rating assigned to the bonds, which helps them get sold in the marketplace. He said the City's bonds received a double-A rating with a stable outlook, which is just two notches below the highest rating that the S&P assigns to issuers like Brooklyn Center. He noted that the rating came back with notes of good management, practices, and Council policies that are in place. Mayor Graves asked him to repeat that. Mr. Aarsvold said it was all written out in the Council's report, but most importantly, the management of the City, both financially and with policies, practices, and procedures, heavily influenced the rating. 11/24/25 -11- DRAFT Mr. Aarsvold stated that he was also able to access the state's credit enhancement program. This program is accessible if the project is entirely utility-related, and the state will allow the City to use its bond rating, which is a triple-A rating, which also applies to the sale of the bonds, effectively guaranteeing that the City gets access to better interest rates. Mr. Aarsvold said the process of bond sales puts the City's debt out to bid, and it is a competitive bidding process with eight bidders. He noted that the Council had the pre-sale report, which outlined the preliminary plan for the issuance of debt, estimated at 3.67 percent, with a bit of cushion to get between there and the day of sale. He said he was happy with that result and the bids that came in. He said after evaluating the bids on the basis of the interest cost that came in, he is recommending awarding the lowest bidder, which was Huntington Securities out of Chicago, Illinois. He said another thing to note is that this is an environment where there was a premium also provided, where the buyer agreed to pay higher than face value or the amount of the bonds in exchange for higher individual coupons to get to that 2.979 percent. He said the City would keep that low interest rate for these current projects and any future projects. Mr. Aarsvold said that is the basic summary of the sale, and there is a resolution for the Council to effectively award the sale of the bonds to Huntington Securities at the rate anticipated. Mayor Graves thanked Mr. Aarsvold for the presentation and asked the Council if there were any questions. Councilmember Kragness asked for clarity on the price for Huntingtin Securities at $6.7 million, and at the bottom, the adjusted price is $6.726 million, with a difference of $5,600, and what that difference is for. Mr. Aarsvold said the price is reflected at the top of the sheet. Councilmember Kragness asked if the price is $6.7 million, then what the adjusted price at the bottom means. Mr. Aarsvold said he does not know why there would be a difference, though, and he thinks it is a typo. He said he had a proposal form with the final numbers on it. Councilmember Moore said the true interest cost states it is 2.9864 percent, and in the back of the packet, it is listed at 2.979 percent, and she guessed that is where the price difference came in. Mr. Aarsvold explained that bonds are issued in $5,000 increments, and when the bid comes in, and it does not jive with the increments, he will make adjustments that way, and there is some rounding that goes along with that to adjust the price, which also affects the true interest cost. He said in the document that the actual price is listed at $6,721,084.75. Mayor Graves moved and Councilmember Lawrence-Anderson seconded to approve a RESOLUTION Awarding the Sale of $6,180,000 General Obligation Utility Revenue Bonds, Series 2025A, Fixing Their Form and Specifications; Directing Their Execution and Delivery; and Providing for Their Payment. Motion passed unanimously. 11/24/25 -12- DRAFT 11. COUNCIL REPORT Councilmember Moore reported that she and Councilmember Kragness attended the Random Acts of Kindness event on Saturday, and it was a well-attended and nice event. Mayor Graves said she attended the BrookLynk Summer Jobs program 10th Anniversary event and celebrated with alumni, amazing City Staff, and community members. Attended the tour of Medtronic Head quarters in Brooklyn Center with Dr. Edwards and Community Development Manager Ian. Facilitated board meetings for the Northwest Tourism Bureau as well as the Brooklyn Bridge Alliance. 12. ADJOURNMENT Mayor Graves moved and Councilmember Kragness seconded adjournment of the City Council meeting at 7:51 pm. Motion passed unanimously.