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Home My WebLink About1997 03-31 CCP Work Session P- • AGENDA CITY COUNCIL WORK SESSION MARCH 31, 1997 7:00 P.M. CONFERENCE ROOM B I. LOGIS: 1. LOGIS discussion of building site/bonds in Brooklyn Center. II. Report on Heritage Center Study: James M. Klas, Marquette Advisors III. Council Items: 1. Mayor Kragness: 1. Council Liaison reports at council meetings. 2. Prayer breakfast date and location. 3. Discussion of community contributions. • 4. Potential bond issue: involving citizen groups /committees 2. Council Member Carmody: 1. EDA loan program. 2. Date of next work session. IV. STAFF ITEMS 1. Update of 53rd Project. 2. Update of Police/Fire design/options /meetings V. MISCELLANEOUS VI. ADJOURN • City of Brooklyn Center Agreat place to start. Agreat place to stay. • MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Hilstrom, Lasman, and Peppe FROM: Michael J. McCauley, City Manage DATE: March 27, 1997 9 SUBJECT: LOGIS I was contacted by Mike Garris, Executive Director of LOGIS, inquiring as to whether the City might reconsider issuing revenue bonds on behalf of LOGIS if LOGIS were to make a payment in lieu of taxes. Attached is a memorandum from Mr. Garris outlining his inquiry. In our conversation, Mr. Garris indicated that the alternate site being pursued in Golden Valley apparently has run into difficulties and they wished to determine if there were circumstances under which the previously discussed site in Brooklyn Center might be viable for them. In response to Mr. Garris' time needs, the matter has been placed on the work session agenda for March 31 so that Mr. Garris might briefly present his revised concept and answer any questions the Council might have. Mr. Garris is simply trying to get a feel for whether or not this concept of making a payment in lieu of taxes would be worth further exploration. Attachment • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer MEMORANDUM • Date: March 25, 1997 To: Mayor Myrna Kragness, City of Brooklyn Center Members of the Brooklyn Center City Council L O G I IS From: Mike Garris, Executive Director, LOGIS � � - Subject: CONCEPT PROPOSAL FOR A NEW LOGIS OFFICE BUILDING IN BROOKLYN CENTER Introduction The purpose of this memorandum is to discuss the possible construction of a new LOGIS office facility in Brooklyn Center. LOGIS also seeks conceptual approval for the issuance of industrial revenue development bonds by the City for this project. Background LOGIS is a twenty -five year old Joint Powers association of municipalities created for the purpose of sharing computing and information systems and support. The City of Brooklyn Center is a founding member of this successful intergovernmental cooperative and has enjoyed many years of cost effective services. Further, LOGIS has maintained its offices in Brooklyn Center for nearly twenty years employing a workforce consisting almost entirely of professional "high- tech" workers. Discussion LOGIS currently leases space within the Freeway Business Center IV complex. Due to expansion needs and a desire to level operational costs, LOGIS is seeking to construct its own building on a parcel of land within the City of Brooklyn Center located at 69 h and Shingle Creek Parkway. Because LOGIS is a local government entity, it can take advantage of public sector bond financing to fund the land and construction costs. These bonds would require Council approval for their issuance, however, the City would have no risk nor obligation for repayment of the bonds. While LOGIS is a tax exempt entity, it has paid a proportional share of taxes to the City for many years as a tenant in leased space. LOGIS is more than willing to make a payment in lieu of taxes to the City should it be allowed to build in Brooklyn Center. We are very excited about the prospect of remaining in Brooklyn Center and look forward to discussing this project with Council Members. To this end, I requested that this item be placed on the March 31, 1997 Council work session agenda. S -329 • cc: Michael McCauley City Manager of Brooklyn Center a EARLE BROWN HERITAGE CENTER BROOKLYN CENTER EDA WORKING SESSION MARCH 31, 1997 KEY FINDINGS 1993 MARQUETTE RECOMMENDATIONS: • City Payment for facility use - complete • Sale /lease of inn or live -in manager - incomplete i • Reduce /reallocate advertising costs - complete • Increase sales staff efforts - complete • Improve highway signage - incomplete • Create package prices - complete • Increase meetings business - complete � ! MARQUETTE ADVISORS R M RENTAL BY 1993-1996 $80 $70 $60 � $50 C v, $40 $30 $20 i f F $10` $0 o h � Jan Feb Mar Apr May June July Aug Sept Oct No D c tl 1993 0 1994 El 1995 ■ 1996 KEY FINDINGS 1993 MARQUETTE RECOMMENDATIONS Cont'd: • Streamline booking procatices - complete • Change name of facility - incomplete • Budget Procress: — Formalize process - partially complete — Forecast /track monthly - partially complete — Management responsibility - partially co e o MARQUETTE ADVISORS a MARGINAL OPERATING PERFORMANCE BY COMPONENT $400,000 $300,000 $200,000 $100,000 $0 ($100 ($200,000), 1997 Budget 1.996 Actual vs. 1996 Revenue �. ■Convention Center ■Catering ■Inn d El Earles ■ Office Rental ■Total KEY FINDINGS COMMUNITY INTERACTION: • Positive interaction with Brooklyn Center Hotels • Competitive impact on hotels limited - primarily wedding /social • Use of city funds to add lodging to complex is not recommended • Inn does not compete with other hotels d • q� Q A /ti MARQUETTE ADVISORS �'`' KEY FINDINGS COMMUNITY INTERACTION Cont'd: • Positive interaction with restaurants for non -food functions • No significant interaction with retail positive or � negative d � MARQUETTE ADVISORS The Earle Brown Heritage Center has made significant strides since our 1993 study, achieving better than breakeven operations for the first time in 1996. Many of our 1993 recommendations have been implemented in some form and other changes /improvements have been made which have enhanced performance. MARQUETTE ADVISORS 1 EBH NET OPERATING PROFIT $200 $100 , $0 _ ($100) d , P f s F a ($200)--- N " ($300) ($400) ($500) 1990 1991 1992 1993 1994 199 b Annual Profit ®�II�► The Inn remains unprofitable. However, it has a positive impact on the complex as a whole. Bond related legal restrictions limit options for changing basic operating structure of the Inn. M--ARQUETTE ADVISORS INN ON THE FARM 60 50 40 30 2 0 t 10 0 i Weddings using all or part of the Inn rooms Corporate clients who use Inn rooms while holding ev ■ p g : Convention Center �q ■ Corporate clients the Inn has introduced to the Heritage enter (f� use was at the Inn) Interaction between the Heritage Center and the surrounding community is generally positive. Market conditions discourage use of city funds to effect development of significant additional lodging at or near the Heritage Center. d MARQUETTE ADVISORS 04OW u )JoN �.,. Joluao uAlloo.is 96 JID MV 96 40 PuZ 96 JID M17 96 a40 PuZ V6 1 40 MV V6 40 PuZ 96 40 Pa£ 96 JID IS L 96 J10 PI£ 96 40 4SL V6 40 PI£ V6 40 3S L 0 0� OZ 0£ C7 ov - a 05 OL • o • 09 06 ADxv 111 aajuac) UApjOoa8 96 aaD 4317 96 40 PuZ 96 a40 LIM 96 J40 PuZ 176 40 4417 176 alb PUZ 96 SID Pa£ 96 40 4SL 96 SID PJ£ 96 J40 IS 176 40 PJ£ 176 J40 3S6 0 0� oz oc v 017 09 OL 08 II V - a I JIOH a RECOMMENDATIONS CONTINUE TO PURSUE WAYS TO IMPROVE INN/EARLES OPERATING PERFORMANCE UNDER CURRENT STRUCTURE: - REDUCE LABOR COSTS - CLOSE PORTIONS OF FACILITY DURIN G SLOW PERIODS \� C B MARQUETTE ADVISORS CONDUCT NEGOTIATIONS WITH HILTON OR OTHER AREA HOTEL FOR JOINT MANAGEMENT OF INN MARQUETTE ADVISORS i INCREASE AVAILABLE MEETING SPACE AS OFFICE SPACE BECOMES AVAILABLE MARQUETTE ADVISORS \J DENIALS DUE TO PRIOR BOOKINGS 45 40 35 ki 30 k 25�� 20 15 10 5 0 ■ All MCH ❑ CHA MCHB MCM MTack *jis tl COMPLETE IMPROVEMENTS TO LOWER LEVEL MEETING ROOMS MARQUETTE ADVISORS \ v �' IMPROVE COMMUNICATION WITH BROOKDALE CENTER 0 0': MARQUETTE ADVISORS C� IMPROVE HIGHWAY SIGNAGE /CONSIDER NAME CHANGE k � �va1 MARQUETTE ADVISORS INCREASE ACCOUNTABILITY OF FACILITY MANAGMENT FOR MEETING BUDGET GOALS MARQUETTE ADVISORS J JOINT EDA /MANAGEMENT WORKSHOP TO CREATE"MISSION STATEMENT" FOR CENTER MARQUETTE ADVISORS � __� CREATE RESERVE FUND FOR CAPITAL IMPROVEMENTS: -HOTEL TAXES FROM NEW PROPERTIES - TIF FUNDS -OTHER SOURCES MARQUETTE ADVISORS _ - INCREASE PARKING AS FUNDS BECOME AVAILABLE MARQUETTE ADVISORS ��