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HomeMy WebLinkAbout1999 04-20 HCM MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION APRIL 20, 1999 CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Erickson at 7 p.m. ROLL CALL Chairperson Erickson, Commissioners Lloyd Deuel, James Lano, Michael VonDeLinde, Muhammed Okoya Lawal, and Mark Yelich. Also present were Community Development Director Brad Hoffman and Community Development Specialist Tom Bublitz. Commissioner Don Arm was absent and excused from the meeting. Commissioner Christopher Russell was absent from the meeting. Council Liaison Ed Nelson was attending a Council Work Session and was not able to attend the Housing Commission meeting. APPROVAL OF AGENDA There was a motion by Commissioner Deuel and seconded by Commissioner VonDeLinde to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES March 16, 1999 There was a motion by Commissioner Deuel and seconded by Commissioner Okoya Lawal to approve the minutes of the March 16, 1999 Housing Commission meeting as submitted. The motion passed. CHAIRPERSON'S REPORT Chairperson Erickson noted that as a point of information for commission members he had received a notice from the City regarding the This Old House Legislation. He explained that since he had completed improvements to his house and the age of the house qualified for the law, he was notified by the City that he potentially qualified for this program. He further explained that the This Old House law provides for a temporary adjustment of the assessed value on the home relative to what the increased value of the improvements would be if the house qualifies in terms of age of housing. Chairperson Erickson further explained that in January of this year he made a presentation to the City Council on the Time of Sale and that at that time he brought up the issue of electrical grounding of water meters. He noted that Commissioner Arm was the first to bring this up at a previous Housing Commission meeting and he used this information during his presentation 4 -20 -99 -1- to the City Council on the Time of Sale ordinance. He noted that this information was contained in an article in the last City Watch Newsletter. He pointed out this was a safety item that Commission Arm brought to the attention of the Commission and he thanked Commissioner Arm for bringing this issue up. STAFF REPORT ON COMMUNITY DEVELOPMENT ACTIVITIES Chairperson Erickson introduced Mr. Brad Hoffman the Community Development Director and noted that Mr. Hoffman has attended Housing Commission meetings each year to update the Commission on current Community Development activities going on in the City. The Community Development Director began his discussion of Community Development activities by reviewing the status of the current Joslyn Pole Yard redevelopment. He noted that approximately a year ago developers approached the City with regard to developing the Joslyn Yard. He noted the Joslyn site had been designated Pole y Super Fund site and it is located west line crossing over 100. He noted that the site f Highway 100 and south of the rail li g o g Y J approximately 30 developable acres. He pointed out the history contained a rox P of the site is that it PP Y P had been a creosote treating site for wooden poles. The creosote had leached into the ground water and contaminated the site. He explained the actual pole treating operation had ended in the 1980's. With regard to the cleanup of the site, he explained that Joslyn had cleaned the site to a level mandated by the Federal Environmental Protection Agency (EPA) and Minnesota Pollution Control Agency (MPCA). Once the cleanup was completed, Joslyn elected to fence off the site as per MPCA requirements. Initially Joslyn did not want to sell the site in consideration of the potential liability for development of a Super Fund site. Mr. Hoffman noted that the company desiring to develop this site is Real Estate Recycling. He explained Real Estate Recycling convinced Joslyn to enter into a 99 year option to develop the site. Real Estate Recycling then approached the City with regard to assisting them in securing funds to provide for the cleanup costs which are estimated at $9 million. I The Community Development Director explained that Real Estate Recycling purchased the Davies Water Supply Company and a portion of the Northwest Racquet Club parking lot to complete the site. These parcels are currently generating approximately $67,000 per year in taxes. The City, along with Real Estate Recycling, approached the Minnesota Department of Trade and Economic Development (DTED) and the Metropolitan Council to assist with the cleanup costs. Both agencies have ongoing grant programs for cleanup of Brownfield properties. In the first round of funding, DTED and the Metropolitan Council combined for a total of $2 million in grant funds for the clean up costs. In addition to grant funds, the City through the Economic Development Authority, established a tax increment district to provide for the clean up of the site with tax increment financing. The Community Development Director explained that the proposed use of the site is office warehouse and that this is one of the last large vacant sites within the freeway belt system in the entire metropolitan area. When complete, the project could be as large as 400,000 to 500,000 square feet of office warehouse use and could potentially create several hundred jobs. He 4 -20 -99 -2- explained further that the value of the new building on the site could be in a range between $15,000,000 to $28,000,000. The current $67,000 generated in taxes by the site could increase to as much as $850,000 to $900,000 in taxes annually. If this occurs, the tax increment financing district could be retired as early as eight years out from the start. Additionally, the tax increment financing district was established as a pay as you go district so that if there are not developments on the site there would be no tax increment created. No tax increment financing bonds would need to be sold in a pay as you go approach. The Community Development Director then reviewed the site at 69th and Brooklyn Boulevard. He explained the northeast corner of the intersection of 69th and Brooklyn Boulevard has been under consideration for redevelopment and noted this area is also included in the Brooklyn Boulevard widening project. He explained the EDA had a development agreement with a developer to create a neighborhood retail center on the site. He explained that approximately 50,000 vehicles per day drive by this site and within a couple blocks north of the site the traffic volume drops down to 20,000. This in an indication that the heavy concentration of vehicles are located in the surrounding neighborhood. With regard to the development project pursued by the developer, the development was never realized. Commissioner Okoya -Lawal inquired whether there would be gas station like a Super America included in the retail center and questioned how this might affect the property values of the surrounding homes. The Community Development Director explained that there would likely be a service station as an anchor for the retail center but the center could also include a restaurant, dry cleaners, coffee shop etc., uses that would be used by the surrounding residents. He also noted that the existing homes would be buffered from the project. Mr. Hoffman explained that the EDA is currently in the process of developing another Request for Proposal for development of this site and noted that on the first effort only one developer was interested but now there may be as many as three to four proposals received for development of this site. He explained the EDA is in the process of acquiring single family properties on the site and would sell these properties to the developer. Additionally, he pointed out the EDA must acquire additional property for the widening of Brooklyn Boulevard and that this will occur within the next year on the same side of the street as the proposed project. Commissioner Lano inquired how far the widening would occur on Brooklyn Boulevard. The Community Development Director explained that at 70th, the roadway will taper back down. He noted that once through the intersection of 69th and Brooklyn Boulevard the traffic drops significantly after 70th Avenue North. He also noted that on the south side of 94 the widening of Brooklyn Boulevard ends at 65th Avenue North. Chairperson Erickson commented that the 69th and Brooklyn Boulevard corner has deteriorated over the years and is one of the more deteriorated commercial areas in the City. The Community Development Director commented that the Big Wheel Rossi Store, Total Gas Station and Pilgrim Cleaners will all go with the widening of Brooklyn Boulevard. 4 -20 -99 -3- The Community Development Director reviewed the new Cub Foods store going in on the old Westbrook Mall site. He explained Westbrook Mall has now been demolished and Cub Foods will put in a 60,000 square foot store at this location. Commissioner Lano inquired what will happen to the New Market property across the street. The Community Development Director replied that he didn't know but the Brookdale development will likely have some impact on redevelopment of the New Market site. The next area reviewed by the Community Development Director was the 252/694 area. He explained Regal Theaters is building a 20 screen stadium style theater in this area. He explained building permits are ready to go when the performance agreement is executed with the developer. He added that construction could start in the next month. The Community Development Director next discussed Brookdale and explained that the plans for remodeling of Brookdale have been approved but the start date for redevelopment is not known at this time. He noted that there would be an additional 100,000 square feet added to Brookdale and an entertainment area would be added where Applebee's is now located including a food court and theater. In addition, another 100,000 square feet of development would be added in "boxed" development on the perimeter of Brookdale. Overall there would be approximately $85 million in improvements to Brookdale. Commissioner Yelich inquired as to whether pedestrian access to Brookdale would be improved especially in winter. The Community Development Director stated that this is not being addressed with the current redevelopment. With the conclusion of the Community Development Director's presentation, Chairperson Erickson thanked Mr. Hoffman for attending this evenings meeting and informing the commission regarding current Community Development activities. HOUSING COMMISSION BUS TOUR OF CITY The Community Development Specialist reviewed a general route for the tour discussed at previous meetings. Commissioner members agreed to start the tour at 6 p.m. on the regularly scheduled meeting date of May 18th. FUTURE COMMISSION PROJECTS The Community Development Specialist reviewed two possible future commission project areas for commission members including a review of the City's occupancy ordinance which was directed to the Housing Commission from the City Council and research into the State Housing Improvement Area statute. With regard to the occupancy ordinance, the Community Development Specialist suggested that this project could start by looking at whether or not other cities are reviewing ordinances relative to this issue. The Commission briefly discussed the occupancy ordinance issue and inquired why this is an issue. Commissioner Erickson suggested that Council members may have been contacted by residents regarding this ordinance provision and indicated this may be one of the reasons the Council has referred it to the Housing Commission. The Community Development Specialist briefly reviewed the Housing Improvement Area statute which essentially came about because townhomes and condominiums were unable to secure 4 -20 -99 -4- traditional mortgage loans to do exterior improvements to their developments. Because the townhouse and condominium associations have no collateral of their own, traditional mortgages do not work for borrowing money to do exterior improvements. He pointed out many townhome developments are finding themselves in positions where there monthly dues and capital improvement reserves do not cover the cost of major improvements including replacing roofs, siding and windows. He noted the Housing Improvement Area statute was enacted to allow cities to treat improvements to townhome and condominium complexes similar to a special assessment project where the city or EDA would originate the loan, the work would be completed and the cost of the improvements would be assessed over a certain period of time with a set interest rate and other necessary fees. He noted that he would bring more specific information on these issues to the Housing Commission at a future meeting. Chairperson Erickson noted that he had talked to the chair of the Planning Commission and was informed that the Metropolitan Council has received an updated Comprehensive Plan from the City but has not yet released it or approved it. Chairperson Erickson noted that he had attended a recent meeting held with the City Council and Commission Chairs to discuss issues related to the Commissions including the use of staff time. He noted that at this meeting it was discussed that the Housing Commission, more so than other commissions, was generating its' own work and that the other commissions had received more direction from the City Council on projects. He explained that in the past year with the Time of Sale Ordinance staff spent a great deal of time on preparing information for the commission. He also noted that the Council stated that code enforcement and citizen complaints are the Council's area and not the responsibility of the commmssions. Chairperson Erickson stated that he requested the City Council to allow the Housing Commission to look at some specific issues assigned by the Council. In future, he hoped that the City Council would give the Commission more Council directed projects, noting that the Commission's purpose is to advise the City Council. SUMMER MEETINGS Chairperson Erickson stated that he would defer discussion of summer meeting schedules to the next meeting. Commissioner Lano stated that he may not be able to attend meetings during the summer because he coaches a Little League baseball team. ADJOURNMENT There was a motion by Commissioner Deuel and seconded by Commissioner VonDeLinde to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:40 p.m. Chairperson 4 -20 -99 -S-