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HomeMy WebLinkAbout1992 03-18 EDAM Special Work Session1 MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA EDA SPECIAL WORK SESSION MARCH 18, 1992 EARLE BROWN HERITAGE CENTER CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 7 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, and Philip Cohen. Also present were City Manager Director Gerald Splinter, EDA Coordinator Brad Hoffman, Heritage Center Manager Judith Bergland, and Assistant EDA Coordinator Tom Bublitz. Commissioner Jerry Pedlar was absent from the meeting. 1992 EARLE BROWN HERITAGE CENTER MARKETING PLAN The EDA Coordinator reviewed the January 19, 1992, monthly report for the Earle Brown Heritage Center. He explained from one year ago in January 1991, there has been a significant increase in revenue and also an increase in operating costs for the Heritage Center. He explained 1992 revenues are showing a steady increase relative to 1991. The EDA Coordinator explained the revenue from the Bed and Breakfast is up from one year ago in 1991, and February 1992 has been the best month to date at the Bed and Breakfast. The EDA Coordinator introduced Mr. Merrill Busch who presented the 1992 marketing plan for the Earle Brown Heritage Center. Mr. Busch reviewed a display of existing ads for the Heritage Center and explained the primary effort for the marketing program is print media for both the Heritage Center and the Bed -and- Breakfast. He then reviewed the publications where existing ads are run for the Heritage Center and Bed and Breakfast. Mr. Busch explained that last year's emphasis was to introduce the facility to meeting planners along with the Bed and Breakfast facility. In 1992, the effort will be to refine the marketing approach and focus on endorsements from past users of the facility. With regard to the Inn, the focus will be on concentrating the message to fill the early part of the week and obtain more event driven stays. Birthdays, anniversaries, and other special events are also a focus as well as smaller business meetings at the Inn. In 1992, the focus for the Heritage Center will be on specific market segments including business, professional, associations, legal seminars, medical training and education, and special markets. In the 1992 campaign, endorsements will be obtained from past users along with testimonials from past users to promote the facility. 3 -18 -92 -1- Commissioner Cohen inquired as to the total audience which will be targeted in the marketing promotion. In response to Commissioner Cohen's question, Mr. Busch pointed out the following publications and there estimated audiences: Star Tribune Bed and Breakfast Directory 700,000, Minnesota Monthly Magazine 80,000, State -wide Minneapolis /St. Paul Magazine 60,000, State -wide Home and Away Magazine 300,000, Minnesota Ventures 30,000, Minnesota Calls 30,000, Minnesota Womens' Press 15,000, and Country Inn 250,000. Circulation for the Convention Center included noted the following specific audiences: Corporate Report 25,000, Purchasing Managers 8,000, and Minnesota Ventures 35,000. Commissioner Cohen stated he would like to see the City of Brooklyn Center promoted in the marketing campaign as well as the facility. He pointed out he believes this would strengthen the overall community image, and this marketing promotion provides an opportunity to promote the City's image in a positive light. He stated he would like to see Mr. Busch and his staff consider this in their campaign. He emphasized that he believed the City is in an image position that cannot be isolated from the Heritage Center. Adding to Commissioner Cohen's comments, Commissioner Scott suggested the Chamber of Commerce could do something for local employers to provide something to their employees to promote the City along with local businesses. EARLE BROWN HERITAGE CENTER CAPITAL OUTLAY REQUESTS The EDA Coordinator introduced the items to be considered for capital outlay including 300 chairs for the Heritage Center, window treatments for the Inn, and use of the C Barn. He explained the first request is for 300 chairs to be used for outside use and to supplement the chairs used inside. Presently, the Heritage Center has 1,100 chairs and when the facility is fully utilized inside, there are no chairs left to be used outside the facility. He explained the estimated cost of the 300 chairs is approximately $12,000 including storage caddies. The EDA board discussed the purchase of the chairs, and questions arose as to the weight and testing including a concern over the quality of chairs and making certain that the hinges on the folding chairs will hold substantial weight. In consideration of the additional capital outlay request items, the EDA board proceeded to the C Barn and Inn to consider the other capital outlay requests. The EDA Coordinator explained the C Barn is presently used for meeting space, and the option other than continued use as meeting space would be to try to lease the property which would cost approximately $20 per square foot in tenant improvements. Also, he pointed out it would cost between $36,000- $40,000 to do the needed tenant improvements to lease the upstairs of the C Barn. He noted that if the C -Barn is used for meeting space, the building will not be on the tax rolls, but if it is leased it will be on the tax rolls. Additionally, he explained the meeting space use of the C Barn will generate more income than leasing it with approximately $50,000 per year in revenue for meeting space, and $17,000 per year for leased space. The EDA members proceeded to the Inn where the EDA Coordinator explained the only window treatments in the rooms presently are window blinds. The cost estimate to do the additional window treatments is approximately $10,865. 3 -18 -92 -2- 1 1 1 1 1 1 The EDA Coordinator explained if the EDA agrees with the staff recommendations on the three capital outlay requests, staff will prepare a resolution for formal EDA consideration. The EDA returned to the Heritage Center where they continued their discussion of the capital outlay requests. The EDA discussed opening up the ceiling area of the C Barn with a vaulted ceiling thereby eliminating the upstairs space and improving the appearance of the facility for meeting space. President Paulson requested delaying action on the C Barn until the March 23, 1992, meeting. There was a motion by Commissioner Rosene and seconded by Commissioner Scott to authorize the staff to pursue the purchase of the 300 chairs and window treatments for the Bed and Breakfast facility, not to exceed $13,000 for the purchase of the chairs and $11,000 for the purchase of the window treatments. The motion passed. There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to table consideration of the capital request for the C Barn until the March 23, 1992, EDA meeting. The motion passed. COMMERCIAL /INDUSTRIAL REDEVELOPMENT OUTLINE The City Manager introduced the draft of the commercial /industrial redevelopment outline and explained the purpose of the draft is to begin to focus on modifying the existing comprehensive plan in conjunction with the recommendations of the Maxfield Commercial /Industrial Study and the Brooklyn Boulevard Study. He explained the redevelopment plan will begin to develop an approach to commercial /industrial redevelopment in the City. The EDA Coordinator proceeded to review the community vision draft outline. He began the focus of the outline on Brookdale and pointed out it is one of the main economic engines that drives much of the north suburban area. He explained he had met recently with the manager of Brookdale, and the City is exploring various financial packages with Brookdale Center. Another major element of the redevelopment plan is a pro- active business expansion and retention program for local businesses which would include the entire north metro area. The north metro local economy would be defined as Brooklyn Center, Brooklyn Park, Fridley, and Blaine. He explained there has been staff level discussions to create an organization to promote businesses within these member cities and to promote the sale of products within this market. He pointed out there are almost 500 businesses operating in the City of Brooklyn Center, but the City has no accurate record of what they are and what they do. One of the features of the plan would be to build a data base and link businesses with common needs even to the extent of joint purchasing. He explained Senator Bill Luther is assisting the north metro area with a grant to provide financial assistance in beginning to establish the business retention /expansion data base. He pointed out the concept is to create living wage jobs and opportunities in the north metro market area. He explained further that cities could initiate the program and ultimately may work on it or it could 3 -18 -92 -3- become its own separate organization. Commissioner Cohen pointed out the three major anchor points in the north metro area include the Brooklyn Center Heritage Center, the Edinburgh Golf Course and meeting facility in Brooklyn Park, and the Blaine Sports Center. The EDA Coordinator continued his review of the draft outline and explained the issue of multi family apartment units is included since they are presently an excess of multi family apartments in the north metro area, and this has an impact on the redevelopment objectives. Commissioner Cohen suggested a wording change in objective C with regard to multi family buildings. He stated he would like to see the language change to read, "reduce and /or restructure the number and type of multiple family dwelling units to be more consistent with market demand and future needs." The EDA Coordinator discussed various elements of image enhancements for the City including plans for a new informational /promotional piece for the City which would consist of a printed folder promoting the City which will accommodate a variety of inserts from various City departments, along with information from school districts and the Chamber of Commerce. He explained the concept is to tailor make the packet for each end user. The City Manager pointed out the City is in a maintenance cycle with regard to development and existing ordinances of the City reflect rules and regulations most pertinent to a growth phase. In short, the existing ordinances may be outdated for the City's current needs. President Paulson indicated that he had a favorable impression of the community vision draft outline presented by staff and had a number of recommendations for additions and revisions to the document. The following additions and revisions to the community vision draft outline were noted by EDA President Paulson: OBJECTIVES f. Create a sense of community through pursuit of a neo- traditional style of town planning and building architecture. 3 -18 -92 g. Pursue a path along the outline in the Wilson quarterly article of winter 1992 entitled "The Second Coming of the American Small Town." h. Avoid becoming an urbanized suburb and avoid becoming an "Edge City" as written about in the book Edge City. i. Be creative, innovative, open- minded, and persuasive. COMPREHENSIVE PLAN d. Revise the comprehensive plan and ordinance to reflect the objectives stated above particularly letters f, g, h, and i. e. Remove some traditional suburban barriers to creative development by reducing setback requirements or parking space and location requirements. 1 1 1 1 1 BROOKDALE b. Promote Brookdale as a mass transit hub and provide convenient, frequent, and reliable transit to Brookdale. d. Establish a Brooklyn Center presence in Brookdale either through a Brooklyn Center booth or Earle Brown Heritage Center booth. BUSINESS EXPANSION RETENTION d. Search for, discover, and design a downtown Brooklyn Center. Make us a main street. e. "Buy Brooklyn Center" or "Buy North Metro Program." In addition to the revisions noted under this section, President Paulson suggested that the business expansion /retention section be removed and pursued as a separate topic in all further discussions unless it relates to specific Brooklyn Center planning and development issues, since this would be approached on a regional or subregional basis. LIFE STYLE ISSUES e. Set up a community that invites people to walk, bike, bus, or wheel chair around the City. Movement of cars is less important than movement of people. f. Use the Planned Unit Development ordinance to mix and merge multi uses on single lots. Examine housing above businesses for low income persons or employees. g. COMMUNITY PROMOTION g. Foster an education ethic, attract the intelligentsia, bookshops, news stands, schools, and colleges. h. Search for, discover, and design a plan for downtown Brooklyn Center. i. Build buildings closer to the style exemplified by the Earle Brown Heritage Center. That is, move to human scale, and less glass, concrete, and steel box buildings. Integrate promotional roles of communications coordinator, volunteers, commissions, and committees with this new direction in development. Commissioner Cohen suggested the City would need to determine out what the overall redevelopment program is going to cost. Commissioner Rosene commented the joint meeting recently held with Brooklyn Park is an example of getting groups together and perhaps getting the City commissions together once a year would also be advisable. The EDA Coordinator stated he would like to see some direction from the EDA specifically regarding the business retention concept and the proposed grant 3 -18 -92 -5- through the Department of Trade and Economic Development. Commissioner Cohen recommended the staff be directed to incorporate the comments made this evening, by the EDA, on the redevelopment policy, and circulate it to the EDA, and have the EDA take formal action and proceed with the grant for the business retention program. There was a motion by Commissioner Scott and seconded by Commissioner Rosene to approve the business retention plan as presented by staff and to direct the staff to seek grant funding for costs related to the start -up and creation of a data base for the business retention program for the north metro area. The motion passed. There was a motion by Commissioner Cohen and seconded Commissioner Rosene to approve the community vision draft outline for commercial /industrial redevelopment in concept and incorporate the comments of commission members and circulate the document to the Chamber of Commerce and return the document to the EDA board at the meeting after the next EDA meeting. The motion passed. MINNESOTA CITY PARTICIPATION PROGRAM The Assistant EDA Coordinator explained the Minnesota City Participation Program (MCPP) is a mortgage program offered through the Minnesota Housing Financing Agency (MHFA) for first -time home buyers. Through the MCPP, the MHFA sells bonds on behalf of cities participating in the program. The interest rates on these mortgages are typically one and one -half to two percentage points below market mortgage interest rates. The Assistant EDA Coordinator explained the advantage of the Minnesota City Participation Program is the City would have a specific set aside of mortgage funds for first -time home buyers and would be able to market and promote the program. In order to apply for the program, the City must submit an application identifying the local housing needs relative to the program. The City must also submit a proposal deposit equal to one percent of its requested allocation, and the deposit will be returned upon the sale of the mortgage revenue bonds. Cities may apply for a maximum set aside of $4,000,000. The Assistant EDA Coordinator pointed out that initially, the program will require a considerable amount of staff time to respond to inquiries and requests for information on the program. The major cost to the City will be in the area of marketing the program. He concluded by stating that if the EDA board decided to participate in the program, staff would request a motion to authorize preparation of an application for the Minnesota City Participation Program. There was a motion by Commissioner Scott and seconded by Commissioner Cohen to authorize the staff to prepare an application for the Minnesota City Participation Program. The motion passed. PURCHASE PLUS UPDATE The Assistant EDA Coordinator explained the City of Brooklyn Center, along with the cities of Richfield, Rochester, and Red Wing have been participating in a test market for the Purchase Plus Program offered through the Minnesota Housing 3 -18 -92 -6- 1 1 1 1 Finance Agency (MHFA). Continuing, he explained the Purchase Plus Program is a special financing program which provides permanent mortgage financing to combine the cost of remodeling and the cost of the mortgage for refinancing existing homes or buying a new home. The Assistant EDA Coordinator explained City staff has placed several articles in the City newsletter and to date, the program has generated a substantial amount of interest, but based on the information staff has presently, no one in any of the cities has yet completed a purchase plus loan. He added he had met with a representative of the MHFA staff on Tuesday, March 17 to discuss the status of the Purchase Plus Program. He pointed out the MHFA staff member indicated the Purchase Plus Program is certainly not meeting the expectations they had originally planned for the program. He added that originally the program was designed to have local lenders originate the loans, but due to the back log of refinancing faced by many lenders, MHFA staff will now be originating the Purchase Plus loans. He added that the MHFA staff indicated they want to become more involved in the program early on and to assure that a high level of service provided to people interested in the program. The Assistant EDA Coordinator indicated there are obviously serious problems with the Purchase Plus Program since there appears to be little activity to date. One of the specific problems appears to be the length of time involved in completing a Purchase Plus loan transaction and the amount of uncertainty as to the exact procedures for persons wishing to participate in the program. Commissioner Cohen commented his neighbor had applied for a Purchase Plus loan and the time period for completing the transaction was six months which is entirely too long a period of time and unacceptable in terms of a reasonable period of expectation for someone desiring to complete a mortgage transaction. Ultimately, he pointed out his neighbors elected to not go through with the loan transaction. CITY USE OF EARLE BROWN HERITAGE CENTER The EDA Coordinator reviewed his memorandum regarding the establishment of booking guidelines for the Earle Brown Heritage Center. His recommendations focused on the establishment of pricing and booking guidelines so that the staff can continue to provide the best possible service to both paying and nonpaying clients. Commissioner Cohen commented he believes the major goal is to strike a balance between the financial health of the center and the community needs for space. The City Manager explained the City can refine the guidelines presented this evening and bring back a more specific set of guidelines for formal approval but for the present time he suggested that all reservations for meeting space at the Heritage Center be taken through the EDA Coordinator. President Paulson commented that one of the primary needs is to look at the facility as a public facility. He added the facility has not been structured so the public can use it. The EDA Coordinator briefly reviewed the contract with Atrium catering and the potential for some possible changes in the contract. 3 -18 -92 -7- President Paulson discussed his desire to see all news as well as the good news regarding the Heritage Center. The City Manager commented that staff does send the EDA board comments on the operations of the center. He added that in development of the Earle Brown Heritage Center the issue of revenue production versus the use of the facility by the public will be a considerable conflict. The EDA board continued its discussion of the use of the Earle Brown Heritage Center and the cost associated with maintaining the facility in a more open position to the public. ADJOURNMENT There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to adjourn the meeting. The motion passed. The Brooklyn Center Economic Development Authority adjourned at 10:38 p.m. Todd Paulson, President 1