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HomeMy WebLinkAbout2004 07-26 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 JULY 26, 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 9:10 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, and Deputy City Clerk Maria Rosenbaum. PROPOSED HOTEL DEVELOPMENT ADJACENT TO EARLE BROWN HERITAGE CENTER City Manager Michael McCauley discussed the proposal submitted by the developer to construction a Radisson hotel development adjacent to the Earle Brown Heritage Center with 200 rooms, a 150 seat full service restaurant, and a 25,000 square foot indoor water park. The proposed development agreement submitted by the developer provides that the Economic Development Authority (EDA) would pay up to $1 Million for the cost of constructing a link between the hotel and the Earle Brown Heritage Center. The developer would pay $2,165,000 for the property twenty years after the date of closing or sooner if certain events happen such as the sale of the property default, or refinancing in an amount greater than the original principal permanent loan. The developer would receive tax increment generated only by the hotel property up to a principal amount of $2.6 Million or the eligible costs, whichever is less. The note would run through February 1 of 2011 providing increment from 2007 through 2010 tax years. Councilmember Niesen questioned what the business risks would be for the developer. Kent Oliver, Oliver Companies, discussed that the potential risks could include the difference of the first mortgage amount and what the City provides; and dealing with operations. Councilmember Carmody questioned the amount of money in Tax Increment Financing District (TIF) No. 2. Mr. McCauley discussed it would take approximately two to two and half years to repay TIF No. 3 for previous advances and the money that will be provided to the developer would only come from increment generated by the hotel. 07/26/04 -1- It was the consensus of the Council to have a development agreement for this proposal on the August 9, 2004, EDA agenda. PROPOSAL TO INCREASE ANNUAL FIRE RELIEF PENSION AMOUNTS Mr. McCauley discussed that the Fire Relief Association had requested an increase in the lump sum annual benefits, as they had not been adjusted since 1998. Springsted had reviewed the materials supplied by the Fire Relief Association along with additional materials on the fire pension. It is recommended that the pension be increased to $6,000 per year effective in 2005 and scheduling of annual reviews of the pension amount. It is anticipated that the pension could be increased $500 in 2005 for 2006; however, continuing with review increases based on annual reviews rather than set a multi -year set of increases given the needs for fund balances and potential changes in experience or markets is suggested. Kent Korman, Brooklyn Center Fire Relief Association President, addressed the Council to present a PowerPoint Presentation regarding their requirements, stats, pension history, comparable fire department pension amounts, pension contributions, and the projected costs of increased benefits. Mayor Kragness expressed that she believes the increase is deserved; and Councilmember Lasman expressed that she believes it is important to have an incentive to retain good firefighters. It was the consensus of the Council to have this item on the August 9, 2004, regular agenda for approval. SENIOR HOUSING PROPOSAL DISCUSSION Mr. McCauley inquired if the Council would like staff to pursue the development of a development agreement for a senior housing proposal for 57`" Avenue across from Northbrook Shopping Mall. The proposal would be used to satisfy part of the requirements to expend fifteen percent of increment tax from TIF District No. 3 for low to moderate income housing. At the end of 2004, the projected housing requirement is $2.1 Million and the cumulative housing requirement could range as high as $ 8 to $10 Million through termination of the district depending on the value of redevelopment in TIF District No. 3. Jim Winkles, Contractor, and Mike Todd, Property Manager, addressed the Council to outline some of the features that the 60 unit senior housing proposal would include. All units would be fully equipped with kitchens and washer and dryers, and one underground parking location per unit. If a proposal were accepted the construction would start in the spring of 2005 and take approximately nine months. Councilmember Niesen expressed concern about the location and questioned if there would be other possible locations for this senior housing proposal. Mr. Winkles discussed that they had reviewed other locations; however, this location would work the best. 07/26/04 -2- Councilmember Carmody expressed that she believes this is a good location and that the neighborhood being considered needs affordable senior housing. Councilmember Niesen informed that she would be willing to move forward with this senior housing proposal, however, would like to have more discussions. It was the consensus of the Council to move forward with a senior housing proposal at 57 Avenue across from Northbrook Shopping Mall. OCTOBER 11 CITY COUNCIL MEETING AND LEAGUE OF MINNESOTA CITIES ANNUAL CONFERENCE It was the consensus of the Council to leave the October 11, 2004, City Council meeting scheduled as is now and if needed, amend at a later date if there was a conflict with the League of Minnesota Cities Annual Conference. MISCELLANEOUS There were no miscellaneous items discussed. ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Carmody to adj ourn the Work Session at 10:22 p.m. Motion passed unanimously. City Clerk Q Mayor 0 07/26/04 -3-