Loading...
HomeMy WebLinkAbout1993 07-26 EDAM Special Session 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 SPECIAL SESSION JULY 26, 1993 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 9:44 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Barb Kalligher, and Kristen Mann. Commissioner Dave Rosene was excused from this evening's meeting. Also present were City Manager Gerald Splinter, Director of Community Development Brad Hoffman, Community Development Specialist Tom Bublitz, City Attorney Charlie LeFevere, and Council Secretary Carla Wirth. APPROVAL OF AGENDA AND CONSENT AGENDA President Paulson inquired if any Commissioners requested any items be removed from the consent agenda. No requests were made. APPROVAL OF MINUTES JULY 12, 1993 -SPECIAL SESSION There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to approve the minutes of the July 12, 1993, EDA meeting as printed. The motion passed unanimously. RESOLUTIONS RESOLUTION NO. 93 -28 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING RELOCATION BENEFITS FOR RICHARD AND PATRICIA SHACKLE FROM 6525 WILLOW LANE The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kalligher, and the motion passed unanimously. 7/26/93 1 RESOLUTION NO. 93 -29 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO. 114 [80401) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kalligher, and the motion passed unanimously. DISCUSSION ITEM UPDATE ON WESTMINSTER CORPORATION ACOUISITION OF THE PONDS AND DISCUSSION OF REOUEST FOR FUTURE CDBG PARTIAL FUNDING OF COMMUNITY CENTER FOR THE PONDS The Community Development Specialist reported Westminster Housing Corporation is a nonprofit housing corporation who has been negotiating the acquisition of The Ponds with the Minnesota Housing Finance Agency (MHFA), the current mortgagor. He explained The Ponds is a project based Section 8 development with 112 units where the rent subsidy stays with the unit rather than the tenant. He stated Westminster Corporation has applied for and received $700,000 from the Federal HOME Program to acquire The Ponds. He further stated a community center (estimated cost $200,000) was part of the overall plan for The Ponds since the outset of this proposed acquisition by Westminster. He added they have secured $100,000 of funding for the community center from foundation resources, however, this contribution is contingent on the City participating in funding a portion of the community center so they are requesting funding of $100,000 from Brooklyn Center. The Community Development Specialist suggested the EDA consider funding this through the Community Development Block Grant (CDBG) program over a four -year period at $25,000 per year. Mary Grace Flannery explained MHFA invited a non profit owner to purchase The Ponds because of the types of problems they have had with past management. She further explained the recent Congressional action to establish a process to save affordable housing for low- and moderate income families by allowing nonprofits to acquire projects. She reported Westminster has made a commitment to serve the community they work in and developed a model for managing to assure access and affordability of appropriate social and human services. Ms. Flannery reviewed a project in West St. Paul which they have acquired and developed a community center which has been very important in turning the project around and developing residents with the ability to become independent citizens. She reviewed their funding efforts for The Ponds community center and stated, if approved, foundations would finance the City's contribution to cover the initial cost and then pay it back with the City's four -year contribution. 7/26/93 -2- Commissioner Scott asked if the community center will be used primarily for meeting purposes. Ms. Flannery answered affirmatively and added it will provide space on site for the residents to use to develop community and resident services and arrange for activities. She stated they would also include members of the broader community but would essentially be space for residents of The Ponds. Commissioner Scott commented the estimated cost of $200,000 was substantial and asked if the center would include a gymnasium. Ms. Flannery stated it would not. Commissioner Scott noted most projects consider the needs of older residents and young children but do not provide for teenagers and young adults. Ms. Flannery explained the actual building and nature of the programs will be determined after acquisition of the building when meetings can be held with residents and their needs assessed. She added the service director will spend time with the Community Resource Center to determine the residents' needs and be jointly supportive. Ms. Flannery stated Westminster feels they need a facility on site in order to meet the residents' needs. She added they are not "wedded" to the $200,000 figure; it is an estimate and they have not even decided what the building will look like. She explained the community center would serve The Ponds and other programs could be held in conjunction with the Community Resource Center. President Paulson expressed concern Westminster has not prepared a concept for the building, services to be offered, or integration of options with other organizations in the community. He stated he feels this concept should be considered but he does not have enough information to make the large commitment being requested. He suggested one of the housing units be used instead of constructing a new building. Ms. Flannery explained they need to be able to accommodate large groups and the project is currently fully leased. President Paulson suggested they consider using the police department site. Ms. Flannery explained they are meeting with Resource Center staff to determine ways to share resources and still meet the needs of The Ponds residents. Commissioner Kalligher asked if the community center would be restricted to The Ponds residents. Ms. Flannery stated it would not because activities would reach beyond but it would be designed to facilitate development of a resident service program. President Paulson questioned funding resources besides CDBG. The Community Development Specialist reported on use of CDBG funds for Year XIX, noting the proposed request could be partially funded from Year XX. He added the money for Year XX does not really exist yet and there has been some discussion CDBG funds may go for flood relief, but he doubted this would happen. He stated the EDA may not want to make a commitment tonight but asked if they would provide an indication regarding use of Year XX CDBG funding with the understanding more detailed information would be presented on the community center. 7/26/93 -3- Commissioner Kalligher expressed concern with spending money that may not even be available in Year XX. She suggested this matter be tabled until the Council has more details on funding that will be available and community center specifics. The Community Development Specialist explained the financing from the Federal HOME Program is contingent upon constructing some type of community center space by the end of 1994, and the foundation resources funding for the community center is contingent upon the City participating in funding a portion. Ms. Flannery added if approved they will close on the acquisition by September 1, 1993, however, Westminster needs to be able to satisfy Hennepin County (lead agency for the HOME Program) they have the ability to construct the community center. She requested the opportunity to keep this project "alive" and come back with a sketch. The Community Development Specialist stated staff discussed this request as part of supporting a different model of management, one which is not currently in place in Brooklyn Center. He agreed with the need for a substantial, long -term commitment to provide support to residents, and the community center is part of that long -term commitment. President Paulson stated the intention is good but Westminster is asking the City for $100,000 of funding but has not presented any details regarding the facility or services to be provided. Commissioner Scott agreed and stated this may be a concept the Council supports but the requested funding would take a "big piece" of the CDBG program. She suggested Westminster come back with more b e about their J ro'ect in West St. Paul or a P floor plan of the community center and list of services to be provided. She added the Council would be putting the "cart before the horse" if they were to fund a project before knowing what the project entails. Commissioner Kalligher suggested this matter also be reviewed by the Human Rights and Resources Commission. The City Manager asked if this project should be considered with other funding requests and follow that process. President Paulson concurred and asked for information on how this program would integrate with other programs in the City, what other options have been explored, how the needs of teenagers and g young dults will be met, possibility of working with the police substation g p tY g P balance of this request with other CDBG uses, etc. Ms. Flannery stated the Resident Services Director could put this program together in cooperation with existing Community Resource Center uses and supply the requested information to the Council. 7/26/93 -4- RESOLUTIONS (CONTINUED) The City Manager presented a Resolution Authorizing Execution of Purchase Agreement for the Acquisition of 5500 Emerson Avenue North and Authorizing Payment of Acquisition Costs. Commissioner Scott asked if this property could be split and used for two single family homes. The City Manager explained it could but the Council and Planning Commission usually encourage larger residential lots. The Community Development Specialist stated the interior lot would be approximately 75 feet (frontage) by 135 feet (depth) and the exterior lot would be 120 feet (frontage) by 135 feet (depth). Commissioner Scott stated her support of using it as two lots since both would be over the minimum standards. She further stated selling two buildable lots would recoup some of the costs, and a smaller site may attract a first -time home buyer. The City Manager pointed out one would be a corner lot with larger setbacks. Commissioner Kalligher questioned the value of the property. The Community Development Specialist stated he is comfortable with the appraisal. Commissioner Kalligher asked if properties along Brooklyn Boulevard should be considered for acquisition since it will tie into the Brooklyn Boulevard Study and provide a greater impact. The Community Development Specialist stated staff has discussed this option and arrived at the conclusion that doing so results in targeting for redevelopment more directly. He agreed with that philosophy. The City Manager explained this is a Council policy decision and as the City gets further into the Brooklyn Boulevard Study staff may ask the EDA to consider that area as a higher priority. Commissioner Kalligher suggested this matter be tabled until it can be further discussed during a work session. President Paulson agreed and added it would be beneficial to discuss options for putting money into the "interior of the community" or on the "exterior" such as along Brooklyn Boulevard where it will provide more impact. The City Manager stated once the initial work on the Brooklyn Boulevard Study is completed, the Council may be in a better position to make this decision. Commissioner Scott stated she has no problem with tabling for further discussion, but this is one acquisition where the City has the ability to recoup their costs by selling two lots. She commented on the deteriorating condition of this house. She stated if the EDA changes direction for funding they should notify Brooklyn Boulevard property owners of the intention in an effort to avoid relocation costs. 7/26/93 -5 There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to table further consideration of a Resolution Authorizing Execution of Purchase Agreement for the Acquisition of 5500 Emerson Avenue North and Authorizing Payment of Acquisition Costs to the August 9, 1993, Council meeting to determine when this item can be scheduled for a work session agenda. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:53 p.m. Todd Paulson, President Recorded and transcribed by: Carla Wirth TimeSaver Off Site Secretarial 7/26/93 -6-