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HomeMy WebLinkAbout2001 12-18 HCM MINUTES O�F THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION DECEMBER 18, 2001 ADMINISTRATION CONFERENCE ROOM CALL TO ORDER The Brooklyn Center Housing Coinmission was called to order by Chairperson Erickson at 7 p.m. ROLL CALL Chairperson Ernie Erickson, Commissioners Kris Lawrence-Anderson, Dennis Snook, Lloyd Deuel, Kathleen Carmody, Michael VonDeLinde, and Mark Yelich. Also present were Council Liaison Ed Nelson, Community Development Director Brad Hoffinan and Community Development Specialist Tom BuUlitz. Commissioner Shawn Taylor was absent and unexcused from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Deuel and seconded by Commissioner Carmody to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES November 20, 2001 There was a rnotion by Commissioner Carmody and seconded by Commissioner Lawrence-Anderson to approve the November 20, 2001 Housing �Commissian minutes as submitted. The motion passed. CHAIRPERSON 5 REPORT Chairperson Erickson noted the appointment of Judy Thorbus as the new commission member and looked forward to her attendance at the next meeting. UPDATE ON COMMUNl'TY DEVELOPMENT ACTIVITIES Chairperson Erickson introduced Brad Hoffman, the City's Community Development Director and explained Mr. Hoffinan is here this evening to present his annual update to the Commission on various community development activities occurring in the City. The Community Development Director began his presentati�n by explaining that recently a Savers Store wanted to move into the building formerly occupied by Jerry's New Market. He explained this use was inconsistent with the City's overall plan for the area and the City Council authorized the acquisition of the old Jerry's New Market site. He explained that the owner of Jerry's now runs the new Cub Foods store. He explained the plan is to demolish the building 12-18-01 -1- occupied by the former Jerry's New Market. He also explained the City does not currently own the site and is in the process of acquir.ing it, pointing out there is a fairly complicated ownership structure with an underlying fee owner along with a group who owns the lease rights and subleases the property. All in all there are several leases between the owner and lessees similar to the situation with the ol.d K-Mart store. He continued to explain the City has not filed the condemnation order yet and it is likely that the City could control the property without condemnation. If the process works out vvithout too many complications, the demolition of the building is a possibility by June to mid.-summer. He noted the building is very deteriorated and blighted and among other things would require extensive roof repair which alone would cost approximately $685,000. Commissioner Lawrence-Anderson inquired whether the reuse of the property would be for a strip ma1L The Corrununity Development Director explained that it would be some type of retail development. The Community Development Director next di�cussed the proposed development for the northeast corner of 69`� and Brooklyn Boulevard. He explained, several Requests for Proposals (RFP's) had been sent out for redevelopment of this area at various times and the response was somewhat limited since the larger developers were ge.nerally not interested in sites this small. Another problem with interesting develupers was that the Brooklyn Boulevard widening was delayed for a time and the start date was uncertain. However, once the Brooklyn Boulevard project is complet�e this will obviously be an asset to developrnent. With regard to the RFP's received for the development, they were both similar and the developer chosen never closed� on the property. The apparent reasons for the inability to close on the property was that the retail space could not be leased up in the strip center portion of the development. The Community Development Director pointed out that one of the options to develop the Brooklyn Boulevard and 69"' Avenue site is to go to the second development proposal and if this is done, the development will likely occur tlus spring. He noted sending out with a new RFP would push the development of the site back to late summer or early fall of 20Q2. The Community Development Director continued his presentation by pointing out that the Brooklyn Boulevard widening project should be complete by June of 2002. He noted the City was involved in a project to acquire the former Car-X site on Brooklyn Boulevard, for Hennepin County since the County did not have authority to condemn the property. He explained the acquisition saved an expensive condemnation with Brookdale Dodge and involved a land exchange between dealerships resulting in improved access to the dealerships along the east side of Brooklyn Boulevard. The Community Development Director next discussed the Shingle Creek Tower project, pointing out Shingle Creek Tower is the lughrise apartment building just south of City Hall. He explained the project was a HUD 236 project �vhich means that the mortgage was subsidized by HUD in turn for reduced rents to tenants for the period of the loan agreement. He noted the contract with 12-18-01 -2- r HUD is now reaching the end and the owner can terminate the agreement and convert the property to market rate rental if the new owners choose to do so. He explained the project is owned by relatively older investors who want to divest themselves of the project. He further explained that the Boisclair Corporation had originally wanted to purchase the property using Housing Revenue Bonds. Boisclair Corporation abandoned the project when the cost of rehabilitation was more than they had initially anticipated. The Comrnunity Development Director explained that, A1ViCON Incorporated, a large Minnesota cozitracting firm is seeking several funding sources to pur.chase Shingle Creek Tower, rehabilitate it and maintain it as affordable housing. The sources of funding include Housing Revenue Bonds, tax credits, funding from the Hennepin County Affordable Housing Incentive Fund, funding the Minne�ota Housing Finance Agency and funding from the City of Brooklyn Center's Community Development Block Grant program. He pointed out, if the project moves forward, the existing tenants will remain in the building at affordable rents and will receive vouchers from HUD to help maintain the affordability of their units. The Community Development Director then discussed the status of the Brookdale renovation and noted that the praject was underway and is getting ready to open the shops in the wing closest to Sears. The Community Development Director next noted the potential for a hotel to be constructed on the vacant property west of the Heritage Center with a potential for a physical connection between the hotel and the Heritage Center. Commissioner Lawrence-Anderson inquired as to the time line for this project. The Corrununity Development Director replied that the project could be underway possibly by August of 2002. Responding to a question from Commissioner VonDeLinde the Community Development explained the size of the hotel could be between 250 and 300 rooms. He noted that the Medtronic develo ment in Fridle is havin an influence on hotel develo ment on the north side P Y g P of the metro area. The Community Uevelopment Director next reported on the status of the Joslyn redevelopment project and explained that the first two phases of the redevelopment project at the old Joslyn Pole Yard site have been completed. He explained Phase III could be done by late summer or fall with the entire project completed by 2003. He noted the total value of the new buildings at the Joslyn site is approximately $22 million and that the original value of the site was approximately $2 mi.11ion. The Community Development Director then discussed the grant received from the Metropolitan Council to provide planning for redevelopment in the City's commercial core. He explained the report is due from the consultant some time this spring and will generally focus on the retail area near and around Brookdale. Some of the possible recommendations include mixed use housing and retail in the northeast part of the retail area near Target. He noted the total acquisition cost to redevelop the area could be as high as $70 to $75 million. The plan could help to develop a 12-18-01 -3- metropolitan focal point in the City of Brooklyn Center. Chairperson Erickson inquired as to the likely status of the old Brookdale Cinema and whether there was any possibility of the City acquiring it. �'he Community Development Director speculated that at some point in time the old theater will likely get demolished in the course of redevelopment of the area. Commissioner Lawrence-Anderson inq�uired if any new restaurants would be likely in the redevelopment scenario. She noted Maple Grove has a great selection of restaurants but there is not a lot in the City of Brooklyn Center. Commissioner Yelich commented that there appears to be a focus on retail development and inquired about possible major non-retail employers. The Community Development Director explained tliat this redevelopment area would not include industrial employers but could include Class A office space. He also commented that with regard to retail, if it draws large numbers of people it could be considered a significant asset, bringing people from outside the Gity into the area. Additionally he commented that housing is needed to support retail. He further commented that the Cit.y does not want to recreate what Maple Grove has created and the goal would be to create a different style with a different architectural theme. He pointed out that, currently there is no connection between the retail area at Brookdale and the one established near Target. Chairperson Erickson commented on the project at 252 and 66`� Avenue North where single family detached townhomes are being built which would appeal to the empty nester market. He noted that more housing like this will likely be needed in the future in Brooklyn Center. Commissioner Yelich brought up the issue of the Housing Commission's input on future senior housing in the City of Brooklyn Center. The Commuruty Development Director commented that there is a need for all kinds of liousing in the City including a need for move-up housing and affordable housing, particularly for seniors and single parents who earn significantly under the area median income. Councilmember Nelson suggested that the City would need to have some goal whether it be focusing on inove-up housing or affordable housing. Chairperson Erickson commented that, generally move-up or upscale housing is driven by the market and the availability of land. Corrunissioner Lawrence-Anderson commented that she has seen data published recently that shows Brooklyn Center and Crystal having the lowest priced homes in the entire metropolitan area. The Community Development Director reviewed the exam le of the Brookwood housin ro'ect P gP J 12-18-01 -4- �I where seniors vacated their single family homes to move into higher density housing, thereby freeing up single family homes for yaung families which added to the school population. Commissioner Yelich inquired whether one solution would be to open up affordable housing in the City. The Community Development Director agreed noting that there is a need for affordable housing in Brooklyn Center and again cited the example where a senior project may be built and would open up single family homes to younger fainilies. He also noted a potential area for future housing development could be along the Mississippi River. Chairperson Erickson inquired of Commission Members whether they had any additional questions for the Community Development Director. There were no additional questions and Chairperson Erickson thanked the Community Development Director for updating the Commission on communiry development activities in the City. REVIEW DRAFT RV PARKING/STORAGE ORDINANCE The Community Development Specialist noted he had prepared some concept language for recreational vehiclz parking and storage and also pointed out that he was not satisfied with the information he had presented to the Commission and inquired whether the Commission wanted to focus on issues related to RV storage and parking or on issues relative to parking safety. Commissioner Carmody cited examples of very large size recreational vehicles and boats stored on various properties in the City and noted that the size of these vehicles could be objectionable. Commissioner Yelich commented that if the size of the vehicles appears to be the issue then that should be the focus of the ordinance. Chairperson Erickson commented that in its past discussion the Commission also wanted to limit the number of RV's including boats, trailers etc. The Community Development Specialist stated he would try and come up with a more specific ordinance for review by the Comrnission at its January meeting. OTHER BUSINESS Chairperson Erickson inquired if any of the Commission Members had any other business to discuss. Commissioner Deuel stated that he had attended a State of the Region address on December 12�' which included a presentation by Ted Mondale. Commissioner Deuel stated that he believes the issues being addressed Uy the Metropolitan Council, including Smart Growth, are here to stay I and that Brooklyn Center really needs to make sure it gets input into the process. He also noted that Mayor Kragness was at the meeting. He again emphasized the need for the City to stay on top of the Smart Growth issues. Commission members briefly discussed issued related to Smart Growth and Councilmember Nelson stated its important to think long term in.looking at the growth process 12-1 S-01 -5- which means 10, 15 or even 20 years out rather than just 5 to 10 years. He stated long tenn planning is imperative. He cited the example of the crosstown commons area. which was i adequate when it was built but is one of the worst traffic problems in the state right now. ADJOURNMENT There was a motion by Commissioner Deuel at�d seconded by Commissioner Carmody to adjourn the meeting. 'rhe motion passed. The Brooklyn Center Housing Commission adjourned at 8:58 p.m. 9,r Chainnan 12-18- O1 6