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HomeMy WebLinkAbout2005 05-09 EDAM Regular 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 REGULAR SESSION MAY 9, 2005 CITY HALL — COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session and was called to order at 9:08 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness and Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Executive Director Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, Public Works Director/City Engineer Todd Blornstrom, Community Development Director Brad Hoffman, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. 3. APPROVAL OF AGENDA AND CONSENT AGENDA There was a motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the agenda and consent agenda. Motion passed unanimously. 3a. APPROVAL OF MINUTES There was a motion by Commissioner Lasman, seconded by Commissioner Carmody to approve the April 11, 2005, Regular Session minutes. Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION APPROVING ENVIRONMENTAL RESPONSE FUND GRANT AGREEMENT BETWEEN THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) AND HENNEPIN COUNTY DEPARTMENT OF ENVIRONMENTAL SERVICES. Executive Director Michael McCauley discussed that in October 2004 the EDA authorized an application for this funding. This would provide $60,000 for environmental response fund grants to conduct the additional environmental investigation of the Northbrook or Hmong American Shopping Center site and the former dry cleaning site. 05/09/05 -1- Commissioner O'Connor asked how soon this work would be able to start if the City does not own the property yet. Mr. McCauley discussed that the City may start as soon as the agreement is signed by Hennepin County and provides that the City can solicit proposals. He informed that staff has already been meeting with a group of potential qualified firms to delineate the specifications that will be used to request the proposals. RESOLUTION NO. 2005-08 Commissioner Lasman introduced the following resolution and moved its adoption: RESOLUTION APPROVING ENVIRONMENTAL RESPONSE FUND GRANT AGREEMENT BETWEEN THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY (EDA) AND HENNEPIN COUNTY DEPARTMENT OF ENVIRONMENTAL SERVICES. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Carmody. Commissioner Carmody inquired why the City had not determined the extent of the contamination. Community Development Director Brad Hoffman discussed that they are talking about the migration of the contaminants off the site. The contaminations and point of origins on the site and where there is a concentration of those have not determined the extent that ground water may have carried them off the site. These grant monies would help with the eventual cleanup of the contamination if it had gone off site. Motion passed unanimously. 4b. BROOKLYN HOTEL PARTNERS, LLC Mr. McCauley discussed that the Brooklyn Hotel Partners is P roposing to have an amendment to the development agreement that would increase the total number of rooms from a 200 room Radisson Hotel to a 174 room Embassy Suites Hotel and an 88 room Hampton Inn. They would increase the value of the entire project and would like to discuss with the EDA the EDA's reaction to their amended proposal. Mr. McCauley presented a simulation of the proposed hotels and discussed the building materials. Commissioner Carmody asked if persons would have to go through the water park to get to the Hampton Inn and the Earle Brown Heritage Center. Kent Oliver addressed the Commission and discussed that there is an enclosed walkway that goes from the Hampton Inn with a connecting link to the Earle Brown Heritage Center or the water park. Commissioner Lasman asked if the links would be glass or building. Mr. Oliver discussed that the links would be comparable to the link that the Earle Brown Heritage Center currently has. Mr. McCauley added that the treatments would be the same as the Earle Brown Heritage Center so it would be compatible with what is there already. 05/09/05 -2- Mr. Oliver discussed that one of the reasons they decided to go with two different hotels was to have one geared to a higher market and one with a different entry level to help with more marketability for the public. Commissioner Carmody expressed that she believes that having two different styles is good for marketing. Commissioner Niesen asked about the projections with the market since the City recently lost a Hilton hotel and there are many other hotels in the City. Mr. Oliver discussed since the Hilton was purchased, there is not another Hilton product in this area. In terms of the project scope, they made the decision to put a full service hotel as a higher end and comparable to the Hilton with all suites and the Hampton Inn is part of the Hilton family but is limited service. She inquired if the projections show that there would be good occupancy for two hotels in one location. Mr. Oliver informed that one of the reasons they went with an Embassy Suites was to fill a void that is in this part of the State of Minneapolis. The Hampton Inn on a daily business rental will draw a number of business related people coming to the area. Commissioner Lasman asked about the increase in square footage with the water park. Mr. Oliver discussed that the reason the square footage is changing is because of the number of rooms; and added that the water park plan has not been amended; however, there may be a wave pool added. Commissioner Niesen questioned what the competition will be with the Grand Rios Hotel in Brooklyn Park. Mr. Oliver discussed that he believes there will not be competition and that their water park will look different than the Grand Rios. From the standpoint of Grand Rios that building was a renovation and they were limited to the performance and how they presented the product. He believes the hotels in Brooklyn Center will have a far superior product. Commissioner Niesen asked if the water park would be included with the room charge or an additional fee. Seth Oliver discussed that they are still working on the fees and added that they are still contemplating on the feasibility of a wave pool as part of the water park. Commissioner O'Connor asked if they plan on having any meeting rooms in either ofthe hotels. Mr. Oliver discussed that the meeting room space is nominal and primarily board rooms; however, within the development agreement the Earle Brown Heritage Center is listed and the reason for developing the hotels was to provide hotel facilities for the Earle Brown Heritage Center. Commissioner O'Connor asked if the lawsuit the City is facing affects them at all. Mr. Oliver responded that they are not a parry to the lawsuit. Commissioner Niesen questioned if the aluminum window materials is a new product being used. Mr. Oliver discussed that the architects are using aluminum more because it seems to be more durable than wood frames. 05/09/05 -3- President Kragness asked where the EDA would go from here. Mr. McCauley discussed that the question before the EDA is if an addendum to the development agreement with the substitution of two hotel facilities with a larger capacity appears to be a reasonable change. There is an executed development agreement with the developer that requires them to perform with one building and they are now proposing two buildings. If the EDA is amenable to considering that amendment, a resolution would come back to the EDA for consideration at a future meeting to provide for an amended agreement. Commissioner O'Connor questioned if there would be any problems with amending the first agreement. Mr. McCauley discussed that the agreement is with the same development group and they have a relationship as a potential franchisee and that is a situation between them as opposed to the City and the Radisson. Commissioner Carmody asked if a motion is needed from the EDA. Mr. McCauley discussed that the issue was for discussion purposes and if the EDA was amenable something in writing would need to come before the EDA for approval. Commissioner O'Connor questioned what would happen if the lawsuit prevented them from moving forward with the hotels. Mr. McCauley discussed that he believes that the intention of the lawsuit is to derail construction. If they are successful in the lawsuit the City would still own the property. She inquired who would pay for the costs of construction if the lawsuit is settled. Mr. McCauley discussed that the risk of construction is on the developer and not the City. 4c. PRESENTATION BY DAN VANG Mr. Hoffman informed that Dan Vang was not present and that he had not heard from him. 5. ADJOURNMENT A motion by Commissioner Carmody, seconded by Commissioner Lasman to adjourn the meeting at 9:34 p.m. Motion passed unanimously. Presi nt 05/09/05 -4-