HomeMy WebLinkAbout1998 06-03 CCM Special 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
SPECIAL WORK SESSION
JUNE 3, 1998
CONFERENCE ROOM B
CITY HALL
CALL TO ORDER
The Brooklyn Center City Council met in a work session and was called to order by Mayor Myrna
Kragness at 7:00 p.m.
ROLL CALL
Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and
Robert Peppe. Also present: Bob Thistle and Mike Mulrooney of Springsted and Associates, City
Manager Michael J. McCauley, and Assistant City Manager Jane Chambers.
DISCUSSION OF DEVELOPMENT ISSUES
City Manager McCauley introduced Bob Thistle of Springsted and Associates and briefly introduced
the subject of the Brookdale Redevelopment by Talisman Companies, L.L.C. Mr. Thistle outlined
for the Council the approach that Springsted and Associates took to evaluate the financial proposal
and information provided to the City by Talisman Companies. Mr. Thistle reviewed the perspective
of a developer and what the developer's objective is when entering into such a project.
Mr. Thistle introduced Mike Mulrooney who presented a more detailed evaluation of the Talisman
Financial Statements and their request for TIF Assistance. The analysis made by Springsted and
Associates was done on a cash flow basis (cash on cash). Mr. Mulrooney reviewed in detail for the
Council the developers cash flow projections and return on investment. This analysis was made
from the developers own financial statements submitted to the City for review.
After Mr. Mulrooney completed his review of these materials, Councilmember Lasman asked
whether or not Talisman Companies would be in the Brookdale Project for the long run, and if the.
financial statements seemed to indicate that would be the case. Mr. Mulrooney responded that the
length of time that Talisman Companies would own the mall depended upon a number of factors
including the time horizon for the partnership, and what may or may not be in the long term
investment for the partnership. Mr. McCauley indicated that one goal of the City may be to limit
City participation in the Brookdale Redevelopment until the project has leased space and some
redevelopment has occurred that will assure that City funds go in the back end of the project and not
on the front end.
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Mr. McCauley answered questions from the Council regarding the partnership of the mall
developers. He also addressed questions about the possibility of placing restrictions in the bond
terms for the developer and outlined the anticipated tax revenues from the project.
The Council engaged in a general discussion of the Talisman Proposal for TIF Assistance in the
amount of $15,000,000. This request was discussed with regards to the amount of cash flow that is.
projected for the owners and the anticipated new tax revenues from the project to the City of
Brooklyn Center. The impact of the Brookdale Redevelopment Project on other TIF projects was
also discussed.
At the end of discussion there was consensus on the terms by which the City Manager will engage
in negotiations with Talisman for utilization of TIF Funds for redevelopment of the Brookdale Mall.
These terms include how much TIF the City will contribute, the timing of TIF Funding, and the
conditions to be placed on the developer as a result of rising TIF Funding.
MISCELLANEOUS
Councilmember Carmody brought to the Council's attention some concerns with regard to handling
of City /County relationships, specifically with regard to the 53rd Avenue Project, and concerns
expressed by Commissioner Opat. After discussion there was consensus that the Council would
continue looking at ways to improve relationships with the County and Commissioner Opat.
A correction was discussed by Mr. McCauley of a statement made regarding non - profit housing
developer interest in Shingle Creek Towers. Mr. McCauley indicated that some non - profit
developers had expressed interest in the Shingle Creek Tower Project late in 1997.
ADJOURNMENT
The meeting adjourned at 9:55 p.m. Y'YVA
City Clerk May
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