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HomeMy WebLinkAbout2004 04-12 CCM Work 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 CITY COUNCIL WORK SESSION APRIL 12, 2004 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session and was called to order by Mayor Myrna Kragness at 8:04 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe. Also present: City Manager Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, Community Development Director Brad Hoffman, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Maria Rosenbaum. SPRINGSTED PRESENTATION ON TAX INCREMENT FINANCING (TIF) Bruce Kimmel from Springsted Incorporated distributed and presented an overview on TIF information that included the following: • Tax Increment Variables /Definitions • How property taxes are calculated • How TIF is calculated • Types of TIF Districts • Eligible Costs • TIF District Establishments • Financing Project Costs Mr. Kimmel discussed that the City of Brooklyn Center in general uses redevelopment types of TIF and that redevelopment is the most powerful type of TIF. The qualifications for development TIF are the following: • Improved parcels make up at least 70 percent of the district. To be considered improved, at least 15 percent of the parcel's area must contain improvement. • More than 50 percent of the buildings (excluding outbuildings) are structurally substandard to a degree requiring substantial renovation or clearance. 04/12/04 -1- • Building is not considered substandard if it could be brought up to code at a cost of less than 15 percent of a comparable new building on that parcel; or • The district consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights -of -way. Mr. Kimmel discussed the term of a redevelopment district is 25 years after the date of receipt of first increment (26 years maximum) and that the restriction is that at least 90 percent of the increment must be used to finance the costs of correcting conditions that allow designation of redevelopment districts. These costs include but are not limited to acquiring properties containing substandard improvements or hazardous substances; acquiring adjacent parcels necessary to provide a site of sufficient size to permit development; demolition and rehabilitation of structures, clearing of land; removal of remediation of hazardous substances; and installation of utilities, roads, sidewalks, and parking facilities. Mr. Kimmel expressed that the City should be comfortable with State tests when moving forward with buildings in TIF districts. Mr. Kimmel discussed the difference between the G.O. Tax Increment Bonds and the Pay -as- you -go Notes; and informed that the Pay -as- you -go Notes are more common with small projects. The way in which to deal with risks of these financing procedures is to mitigate and be sure to have the developer aware of any shortfalls. City Manager Michael McCauley discussed that there is a third option of cash, however cash has more limited period within which is can be used. After concluding his overview Mr. Kimmel asked the Council contact him for any more information. DISCUSSION ON TIF DIRECTIONS IN TIF DISTRICTS NOS. 2 AND 3 Mr. McCauley presented and discussed an overview of more TIF information that included the following: • Rough Increment Ranges • Summary of Bonding Capacity with Rough Estimates • Assumptions • Rough Acquisition Ranges • Illustrative Scenarios • Additional Costs • Additional Revenues • Next and Future Steps Mr. McCauley outlined the vision impacts from redevelopment and reminded that these visions are all assumptions and that future steps in the Council's review are planned for early summer. 04/12/04 -2- Council discussed the illustrative scenarios of Brookdale Ford, Northbrook, and Across from Northbook; and Summerchase, Northbrook, and Brookdale Ford. It was the consensus of the Council to concentrate on developing potential scenarios of Brookdale Ford, Northbrook, and Across from Northbook. If for some reason that scenario did not proceed, then the Summerchase, Northbrook, and Brookdale Ford sceneario could be considered. Mr. McCauley discussed that he would like to start with solicitation/negotiation letters on whether these properties would be interested or not to sell the properties; and that the next discussion for TIF would be in June after the Legislative Session ends. GROUP HOMES This item was discussed at the Study Session. TRANSIT STRIKE AND TRANSIT HUB Councilmember Niesen expressed that she would like statistical information regarding the number of crimes at or around Brookdale during the bus strike. Mayor Kragness informed that she had spoken to Brookdale's Assistant Manager and they have reported a 20 percent decline in business since the bus strike. Councilmember Carmody expressed she believes the 20 percent decline in business is questionable since there are other factors that could be considered for the decline in business at Brookdale. Mr. McCauley discussed that he believes it would be beneficial, if it can be done, to have a report prepared for during the strike period and to compare it to last year's crime statistics. BUDGET Councilmember Niesen expressed her concerns regarding increases in valuation and asked that next year the City Assessor explain in more detail the fluctuations from year to year. Mr. McCauley discussed that the Board of Equalization meeting is on May 3, 2004, and suggested that the trends be reviewed in more detail from the City Assessor and Hennepin County Assessor. ROUGH DRAFT TAXI ORDINANCE Mr. McCauley discussed that the Police Department continues to work on the taxi ordinance and asked if the Council would be in favor of moving forward with the rough draft ordinance with a few refinements. It was the consensus of the Council to move forward with the taxi ordinance. Councilmember Carmody asked that the draft ordinance be mailed to Timothy Crandall. MISCELLANEOUS Councilmember Carmody expressed that she believes more context is needed in the minutes. 04/12/04 -3- ADJOURNMENT A motion by Councilmember Carmody, seconded by Councilmember Peppe to adjourn the Work Session at 10:09 p.m. Motion passed unanimously. City Clerk ayor 04/12/04 -4-