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HomeMy WebLinkAbout2010 02-08 CCM Study Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION FEBRUARY 8, 2010 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:02 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Tim Roche (arrived at 6:05 p.m.), Dan Ryan, and Mark Yelich. Councilmember Kay Lasman was absent and excused. Also present were City Manager Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Community Development Specialist Tom Bublitz, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Yelich requested discussion on EDA agenda item 4a, specifically in relation to the income requirements included in the Neighborhood Stabilization Program (NSP 1). He questioned why the City Council would authorize funding a program to add low- income housing to the City which likely has the most affordable housing stock in the metro area. Councilmember Roche arrived at 6:05 p.m. Councilmember Yelich expressed interest in the First Look Program. He stated the City currently has many good tools at its disposal to manage rental properties. He questioned how the limited number of eight units would be a big impact in stabilizing housing prices and also questioned whether the Minnesota Housing Finance Agency (MHFA) is a responsible agency in terms of housing programs. It was noted that NSP 1 income groups include: 1) households earning at or below 120% of Area Median Income (AMI); 2) households at 50% AMI. There was discussion on the following in relation to the above NSP 1 income groups: • The requirement for households at 50% AMI is 25% • The 50% AMI households included in the NSP 1 agreement could address low income housing already located in the City. 02/08/10 -1- i City Manager Curt Boganey clarified that the City is a ble to participate in the First Look Program without committing to NSP 1. With respect to the 25% requirement for households at the 50% AMI, he advised the following: 1) Perhaps this should not be characterized as adding additional low- income housing to the City because the program is taking existing housing and renovating it. If the housing is not renovated it is housing that still exists in the City and they will not have control over whether it is occupied by a person of low- income means or moderate - income means. 2) He is not certain that the purpose of the program is to try to stabilize housing prices, and eight units around the City will not have much of an impact on stabilizing prices. He g chooses 1 reason to participate in the program if the EDA choo would advise that the principal p p would be to ensure that the units included in the program will be owner occupied. Most importantly is to provide for a substantial upgrade and improvement in that existing home. This is an acquisition/rehab program so it is taking an old housing stock and transforming it into something of much higher quality. Mr. Boganey discussed that the requirement for households at 50% AMI is 25 %, which limits the requirement to two of the eight anticipated units. He provided information on the household earnings in relation to the AMI with the City's ReNew Loan Program, noting that the individuals that qualified under the program were required to meet standards to qualify for a mortgage. If the EDA determines to P roceed with the NSP 1 agreement, it will be able to establish criteria to assure that the two homeowners who are fortunate enough to move into these renovated homes meet all the expected standards of a homeowner. There was discussion on the following in relation to the NSP 1 agreement: • The lending criteria established with the Renew Loan Program followed acceptable lending practices. These same standards would need to be met with the NSP 1 Program. • The City will have input in setting the criteria included in the NSP 1 Program; however, federal requirements will need to be taken into account. Incorporation of green rehab standards into the housing rehab. Councilmember Roche requested discussion on agenda item 10g. He commented on the City's upgraded rating to AA. He stated his support of proceeding with the Build America Bonds, commenting that it will likely save the City run. He stated his p y $50,000 the long support of looking into bonding opportunities to leverage the City's new credit rating to rebuild and reinvest in the community. Mr. Boganey provided information on Build America Bonds. He advised that if the subsidy provided by the federal government with the Build America Bonds were to be eliminated in the future, the interest rate would increase. The City could then choose to pay the higher rate to the bondholders or reissue new tax exempt bonds which would reduce the interest cost to the utility. Reissuin g the bonds would involve issuance and underwriter costs. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Councilmember Roche moved and Councilmember Ryan seconded to close the Study Session at 6:45 p.m. 02/08/10 -2- Motion passed unanimously. RECONVENE STUDY SESSION Councilmember Ryan moved and Councilmember Roche seconded to reconvene the Study Session at 6:46 p.m. Motion passed unanimously. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Mayor Willson requested discussion on agenda items 6c and 6d, noting that one of the on -sale liquor license applications is for an organization located out of state. Mr. Boganey explained that in both of these cases the State issues the license. The State has the responsibility to confirm the information on the application and assure that these are legitimate applicants that meet all of the State's criteria. With respect to the applicant with an out of state address, there is a local person who submitted the application and represented himself as a member of the national organization. Historically there have been other applications submitted for out of state applicants. Issues are dealt with as a local matter and the representatives on premise would be held accountable. Mayor Willson asked whether there have been any requests, or if the Police Chief has looked into having law enforcement or some sort of security in place for the subject event. Mr. Boganey replied that the application has been looked at more in a way of whether the location is appropriate for this type of activity and whether the appropriate paperwork has been submitted. If the Council approves the application staff will look into whether it would be appropriate to have the Police Department be prepared with security for the event and address any concerns. Mayor Willson noted this is a national organization. He requested that staff ensure that occupancy limitations and requirements be communicated with the applicant. In regards to agenda item 10a, Mr. Boganey indicated that Mr. Brummer, owner of Gateway Commons is aware of the February 8, 2010, memorandum from Ms. Schleuning on the issues raised by Mr. Hauge of HOME Line. ADJOURNMENT Councilmember Ryan moved and Councilmember Yelich seconded to close the Study Session at 7:00 p.m. Motion passed unanimously. 02/08/10 -3- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Study Session of the City Council of the City of Brooklyn Center held on February 8, 2010. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its February 22, 2010, Regular Session. City Clerk Mayor 02/08/10 -4-