HomeMy WebLinkAbout2000 12-21 CCM Special Session �
MINUTES F THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
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SPECIAL SESSION
DECEMBER 21, 2000
CONFERNECE ROOM B
CALL TO ORDER
The Brooklyn Center City Council met for a special session at Brooklyn Center City Hall in the
Council Chambers and was called to order by Mayor Myrna Kragness at 6:08 p.m.
ROLL CALL
Mayor Myrna Kragness, Councilmembers Debra Hilstrom, Kay Lasman, and Robert Peppe.
Councilmember Ed Nelson was absent and excused. Also present: City Manager Michael J.
McCauley, Assistant City Manager Jane Chambers, and Deputy City Clerk Maria Rosenbaum.
City Manager Michael McCauley discussed that Talisman Companies, LLC requested a special
meeting to discuss date changes in the development agreement for Brookdale. A revised
development agreement had been prepared by Briggs and Morgan incorporating the date changes
requested by Talisman, LLC that included the following:
• Completion of mall improvements from March 14, 2002, to August 15, 2002
• Completion of Dayton's minimum improvements from June 30, 2003, to March 30, 2003
• 1 st note of payment date from 2003 to 2004
• Final note payment date from 2007 to 2008
No changes in the terms have been made, the same improvements are required and the same pay as
you go format and dollar amounts are retained:
• 5 year window within which to receive increment
• Pay as you go note for $2.9 million at 8 percent interest
• Developer receives 80 percent of available increment generated by the project to payoff the
note
James Schlesinger, President of Talisman LLC, addressed the Council to discuss his request for an
extension on the dates of the development agreement and inform the Council that he would like to
move forward with the project; however, the financing and the final plan from Barnes and Noble
have taken longer than anticipated.
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Mr. Schlesinger stated that the demolition will start on January 15, 2001, and distributed a tenant
roster and site plan to discuss with the Council.
Mr. Schlesinger informed the Council that there will be a grand opening ceremony in January and
that approximately 3,000 invitation will be mailed.
Council discussed the development agreement relating to the notes, completion dates, and defaults, if
they were to occur. Mr. Schlesinger advised the Council that he would not have three years
remaining on the operating agreements with the anchor stores when Dayton's improvements were
completed. Councilmember Hilstrom suggested the language be modified in the development
agreement to remove the three -year language in 6.1 (g) since she is aware that anchor stores will
generally not enter into such operating covenants. Mr. McCauley advised the Council that the
language could be modified, if the Council so desired, and that the amendment to the development
agreement could be changed to read the following:
6.1 (g) "The development property is at least 75 percent leased to eligible tenants at the time
of issuance of the note and the adjacent property shall be occupied with operating
department stores by Dayton's, Penny's, Sears, Kohls, and Mervyn's at the time of
issuance of the note;
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Mr. McCauley discussed that the proposed resolution amends only the requested date changes and
that if the Council would like the language amended it could approve the above - mentioned language.
RESOLUTION NO. 2000 -230
Councilmember Lasman introduced the following resolution with a revision of 6.1 (g) to read as
follows and moved its adoption:
6.1 (g) "The development property is at least 75 percent leased to eligible tenants at the time
of issuance of the note and the adjacent property shall be occupied with operating
department stores by Dayton's, Penny's, Sears, Kohls, and Mervyn's at the time of
issuance of the note;
RESOLUTION APPROVING AMENDED AND RESTATED DEVELOPMENT AGREEMENT
WITH TALISMAN, LLC
The motion for the adoption of the foregoing resolution was duly seconded by Councilmember
Peppe. Motion passed unanimously.
ADJOURNMENT
A motion by Councilmember Hilstrom, seconded by Councilmember Peppe to adjourn the meeting
at 7:03 p.m.
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City Clerk Mayor
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