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HomeMy WebLinkAbout2006 08-28 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION AUGUST 28, 2006 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council /Economic Development Authority (EDA) met in Work Session and was called to order by Mayor/President Myrna Kragness at 8:06 p.m. ROLL CALL Mayor/President Myrna Kragness and Councilmembers /Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, Community Development Director Brad Hoffman, and Deputy City Clerk Camille Worley. MAKE A DIFFERENCE DAY — MAYOR KRAGNESS Mayor /President Kragness explained the Make a Difference Day Annual Challenge and stated it is an opportunity for the City Council to apply its wishes to a contest. She stated it is a call to action for citizens to spend a Saturday, making a difference in their community. She asked for suggestions and indication of interest from the City Council. Councilmember /Commissioner Niesen stated she would like to celebrate the Make a Difference Day Annual Challenge. Interim City Manager Curt Boganey stated the City of Brooklyn Park had participated in the Make a Difference Day Annual Challenge through the Come Home to the Park organization who coordinates and tracks the activities of the participating citizens and transmits the information to the Make a Difference Day organization. He stated the program requires some work if recognition for efforts is desired. Mayor/President Kragness suggested that an organization in Brooklyn Center be recruited to organize the Make a Difference Day Annual Challenge. Councilmember /Commissioner Carmody stated if a Brooklyn Center organization wants to coordinate it, she would be supportive; however staff time and Councilmember time is limited. She recommended that the City consider participation in the Make a Difference Day Annual Challenge next year. 08/28/06 1 The City Council did not consent to move forward with participation in the Make a Difference Day Annual Challenge. SEPTEMBER AS SAVE A LIFE MONTH —MAYOR KRAGNESS Mayor /President Kragness stated she received a letter from the National Headquarters of the Save a Life Foundation, a member of the U.S. Department of Homeland Security's National Preparedness Month Coalition, requesting that the City of Brooklyn Center proclaim the month of September 2006, as "Save a Life Month." She stated a sample proclamation was included with the letter and she asked the City Council for permission to sign the proclamation. Councilmember /Commissioner Lasman asked for clarification of the intent and asked if the organization is encouraging children to attempt to save an adult's life or someone their own size. Mayor Kragness explained that the schools are teaching first aid skills, however this is an organized process by the Save a Life Foundation. Councilmember /Commissioner Carmody stated the organization would be better suited going through the schools first. The City Council discussed the item and determined not to support it at this time. MASSAGE PARLOR ORDINANCE — CITY MANAGER Mr. Boganey discussed the findings regarding Massage Parlor Ordinances from other communities. He stated there are some similarities and some cities that take a different approach. He asked for direction from the City Council regarding ordinance modification and if so in which areas. Councilmember /Commissioner Niesen stated difficulty in the City Council reading and analyzing the ordinances due to time constraints. She stated the chart, comparing surrounding cities' massage parlor policies was helpful. Mr. Boganey stated staff responded to direction of the City Council, and responses from those cities were received. He stated the consensus of the City Council was not overhauling the entire ordinance, rather just the health club aspect. The City Council discussed the different regulations of the survey results. The City Council discussed amending the language in relation to the bathroom requirement by referencing the Building Code. Mr. Boganey stated Brooklyn Center is the only City surveyed that requires separate locker rooms for male and female. It was the majority agreement that separate locker rooms not be required for the purpose of allowing massage. The City Council agreed that in regards to Curves and Spa/Salons for purpose of allowing massages, separate locker rooms should not be required. 08/28/06 2 Mr. Boganey stated if the separate locker room requirement was discontinued for purpose of allowing massage, other businesses would be able to offer massages. The City Council discussed the requirement of a mop sink. It was discussed that in the case of Curves, a mop sink is not present; however they have a cleaning service that eliminates the need for a mop sink. Councilmember /Commissioner Niesen stated to encourage the massage use in the City of Brooklyn Center, the fees should be reviewed. Mr. Boganey stated he will create ordinance amendment language to be proposed to the City Council. CRACKER BARREL PROPERTY DISPOSITION Mr. Boganey went through the memorandum and discussed the options and requested action from the City Council. He discussed land values, building values, cost of site clearance, sources of funding, and TIF funds that are available and what they can be used for. He stated site assembly is typical; however the City would be acquiring some risk in that the property could remain off the tax rolls for a period of time. He explained that if the bond proceeds or TIF funds are used for these acquisitions, that is money that is not available for other uses. He stated he believes each risk can be minimized and the potential benefits should also be considered. He stated a direct contact was received stating that the City should submit a proposal for Project Centaur. He stated he is not suggesting that if the City acquired the properties, it would get the project. Community Development Director Brad Hoffman stated he gets inquiries from developers looking for 10 -15 acres which he usually refers to Brooklyn Park. He stated the sum of the three properties would be a very desirable parcel. He stated the City has been approached by two brokers showing interest in the properties. He stated the Cracker Barrel is 4.24 acres and was purchased for $1.8 million. He stated the Olive Garden property is 2.39 acres and was purchased for $1.125 million. He stated the Days Inn property was sold in April of 2005. He discussed issues with the Days Inn building such as mechanical problems. He stated an office showroom development use would likely double tax base. He suggested that the Cracker Barrel property could be put on the market to receive proposals for a given period of time, or a Request for Proposal be issued for a specific type of development. The City Council and staff discussed the market value and construction price of hotel development. Councilmember /Commissioner Niesen stated she was very disappointed by the Real Estate Recycling's proposal considering all of the City's cost she felt the proposal prices from Real Estate Recycling was too low. Mr. Hoffman discussed factors associated with redevelopment that are costly. 08/28/06 3 The City Council and Staff discussed the market value of Brookdale Mall, timing of developing the properties, and uses of the combined properties. Mr. Hoffman discussed potential options for the site including corporation expansions and stated the proposed property is the only property he feels would be adequate for such a project. He stated a large development on this property would have a large impact on property values in the area. He discussed the taxable bonds that the City has three years to spend the proceeds of and stated by May 2008, the City has $22 million dollars to spend or give up. He discussed land swap options with Brookdale Ford. Mr. Boganey summarized the financial situation and stated there is $19 million available that could be used within TIF District 3. He stated this land and others in TIF District 3 would be available for the use of the funds. He stated a deadline of December 2007, to spend $10 million and the balance must be spent by May of 2008. He stated he is not suggesting that due to the deadlines, the City should spend the money; however he is telling the City Council that after the deadlines, the options are no longer available. Mr. Hoffinan stated the project must be complete and the money spent by May of 2008. Councilmember /Commissioner Carmody stated residents are asking the City to do something to kick start the City into positive redevelopment. She stated preference of alternatives one and two. She stated having the combination of the Olive Garden and Days Inn properties would be a positive move for the City. Mayor/President Kragness agreed with Councilmember /Commissioner Carmody and stated she can envision something marvelous on the site. Councilmember /Commissioner Lasman stated agreement with Councilmember /Commissioner Carmody and Mayor/President Kragness. She stated the only way the City has a chance for a development of this size is to take a calculated risk. Councilmember /Commissioner Niesen inquired about using the money for the Opportunity Site. Mr. Hoffman explained that out of the Opportunity Site, only the acquisition of Brookdale Ford is in TIF District 3, where the money can be used. Councilmember /Commissioner O'Connor stated concern that School District 286 and its residents will be affected. Mr. Hoffinan stated all the parcels are in TIF District 3 and the tax base is frozen. Councilmember /Commissioner Niesen stated property owners are approaching the City to purchase their property and the City should be offering a decent reduction from the asking price. Mr. Boganey discussed different options for the selling and buying parties alike, to ease the transition including negotiation and the lease back option. The majority consensus of the City Council was to authorize the City to attempt to negotiate an agreement and if successful, return with an agreement for City Council vote. 08/28/06 4 Councilmember /Commissioner O'Connor stated she is not in favor of proceeding with negotiations of an agreement. MISCELLANEOUS The City Council discussed the Hotel Development and uses of funding for the project. ADJOURNMENT Councilmember /Commissioner Lasman moved and Councilmember /Commissioner Carmody seconded adjournment of the City Council/Economic Development Authority Work Session at 9:45 p.m. Motidn passed unani ously. C.C.t/J City Clerk ' Y W$' Mayor t 08/28/06 5