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HomeMy WebLinkAbout1996 10-21 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 OCTOBER 21, 1996 CITY HALL, CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center City Council met in a special work session and was called to order by Mayor Myrna Kragness at 7:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Hilstrom, Kristen Mann, and g Y� Charles F. Nichols, Sr. Also present: City Manager Michael J. McCauley, Fire Chief Ron Boman, Community Development Director Brad Hoffman, and Council Secretary LeAnn Larson. CITIZEN INPUT AT COUNCIL WORK SESSIONS Councilmember Hilstrom discussed the appearance of Dean Nyquist and Phil Cohen at the last Council work session where the presentation exceeded the five minute limit as established by Council policy. The Council had further discussion regarding the policy and the circumstances surrounding the previous work session. EARLE BROWN HERITAGE CENTER City Manager McCauley introduced the topic of the Earle Brown Heritage Center. As indicated in his memo, he felt the primary issue was for the Council to determine its own views as to the mission of the Heritage Center. He also outlined parts of the memo relating to his suggested approach of dealing with peripheral operations at the Center, specifically the Inn and restaurant. Mr. McCauley outlined a general suggestion that the core business and operation was the conference center and that his suggested approach would be to deal with the lesser issues at the Heritage Center prior to reviewing the core conference operation. Councilmember Hilstrom commented the continued loss of income by the Heritage Center should be addressed, not put off until after the election or into the new year. Mayor Kragness reminded Council of several limitations to options before the bonds are retired in 2004 -- essentially the City is "locked in" to the Center until then. Councilmember Carmody suggested goals and values for the Heritage Center be established by 10/21/96 -1- Council. She thought it important to discuss which areas are acceptable /unacceptable to address and what direction the Council envisioned the facility's future. Councilmember Hilstrom emphasized existing goals already established in the Modified Earle Brown Farm Redevelopment Plan weren't being met: 1) provide ongoing benefit to residents of Brooklyn Center and those who may frequent the area, and, 2) arrive at rehabilitation and re -use of the Earle Brown Farm site that is economically viable and/or accomplishes public goals at minimum public expense. Since the facility may never break even, perhaps a consultant should be brought in to walk Council through a process to help resolve this issue. She suggested this process should be done soon, as demands on Mr. McCauley's time in the near future may prevent him from being able to garner all pertinent information regarding the Center in order to address this issue at length. Councilmember Nichols agreed an outside consultant would work or Mr. McCauley could provide in -depth information. Councilmember Mann reminded Council that no capital improvements to the Inn have been made in six years. Community Development Director Brad Hoffman discussed that original projections were that the conference center at the end of five to seven years would give an indication as to its ability to sustain the cost of operations. The materials that were reviewed and discussed when the decision was made to open the Center indicated that it would be between five and seven years before it could be hoped that the Center would break even on operations, if it would even do that well. As part of the analysis of the Center, one of the missing components was a residential component. The Inn on the Farm, as indicated in the Marquette Partners report, would not be able to sustain itself and the question was whether the operations of the conference center would be able to cover the losses at the Inn. Mr. Hoffman also discussed the fact that at this point in July the conference center operation was in the best financial position it has been in since its inception, and there was a positive trend that might cause the Heritage Center to end the year in black. Councilmember Nichols stated the Heritage Center must be recognized as a conference center and entity for small business meetings through improved /increased advertising and marketing. The Inn and restaurant should not be closed. Councilmember Carmody suggested working on the primary purposes to be achieved and strategies for the Center. Councilmember Hilstrom stressed the need for up -to -date and complete information. She added the Farm should not be subsidized by TIF money. It should sustain itself. The Council discussed the pros and cons of having a consulting firm begin work on an analysis of the Heritage Center. The Council agreed upon the benefits in having a consultant walk them through the facility so as to understand the operations and potentials. There was further discussion on whether it would be better to engage the services of Marquette Partners, who had done the most recent study rather than have a firm that would need to familiarize itself with the operations before being able to provide a report. The general consensus of the Council was that it would like to have Marquette Partners prepare a proposal for Council consideration to assist them in understanding the 10/21/96 -2- operations of the Heritage Center and for Marquette Partners to do an analysis of the Center. Citizen input from Nancy Carlson centered on Farm deficits over the past and use of TIF funds, and she asked that citizen participation be allowed in this research with Marquette. Del Erickson requested a copy of a feasibility study done in the past on the Heritage Center. Tim Willson spoke on citywide TIF issues. DRAFT LETTER TO LOGIS City Manager McCauley asked the Council to review a proposed letter to Mr. Paul Moe, DTED, stating the City's position on a potential LOGIS building in Brooklyn Center and the use of bonds for its construction. The Council agreed the response reflected the Council's position. FIRE DEPARTMENT REQUEST FOR PART -TIME PAY IN 1997 BUDGET Fire Chief Ron Boman explained the increase of $35,000 to Personnel in the proposed fire department budget for 1997. Of the 22 fire departments in the North Suburban Mutual group, Brooklyn Center is the only member which doesn't pay it firefighters for any fire department functions. In order to attract and keep volunteer firefighters, Mr. Boman requested $10 per hour be paid for drills. He noted firefighters still won't be paid for truck checks, fire runs, or other work details. Councilmember Hilstrom asked if this $10/hour compensation would create an expectation of a three percent increase next year at budget time; Mr. Boman said no. Mr. Boman also responded to Councilmember Carmody's question of the number of certified firefighters at present. There are 34 certified firefighters, with 40 a full complement. A motion to break at 8:28 p.m. passed unanimously. The meeting reconvened at 8:41 p.m. COUNCIL DIRECTION ON SOCIAL SERVICE FUNDING REQUESTS In relation to the proposed 1997 budget, $80,000 is designated for social services. The following groups /programs have made requests: Brooklyn Peacemaker Center, Inc.; CEAP; Five Cities Senior Transportation; North Hennepin Mediation Program; Northwest Hennepin Human Services Council; Project PEACE; Brooklyn Center Youth Football; Brooklyn Center Youth Hockey; Brooklyn Center Community Band; and Discover the Center. The City has joint powers agreements with Five Cities Senior Transportation, Northwest Hennepin Human Services Council, and Project PEACE. Councilmember Nichols stressed the importance of providing youth activities. Councilmember Hilstrom added that programs should be accessible in all parks, not just at the Community Center. Mayor Kragness commented it is important to get kids involved but that we can't afford summer "day care" of youth. Councilmember Mann commented on the structures /shelters at the various parks needing maintenance. 10/21/96 -3- Councilmember Carmody raised the issue of selecting only a few youth activities in the community receiving funding from the City. She identified a number of other youth activities such as karate and dance that do not receive assistance from the City. Councilmember Carmody felt that the City should not be providing funds for any of these activities. Resident Rod Snyder commented on recruiting at -risk children into programs and developing partnerships between government, schools, and businesses. (At 9:25 p.m. Councilmember Hilstrom suggested discontinuance of social services discussion in order to accommodate the TIF presenter, Mr. Bob Thistle. Discussion on social service budget items resumed at 9:44 p.m.) City Manager McCauley advised the Council that he anticipated that there would be joint activities that would be sponsored by Discover the Center and the City of Brooklyn Center. Under those circumstances where the City was engaged in an activity such as the annual Realtor's Day, City funds would be expended in sponsoring activities jointly with Discover the Center and perhaps other entities. Mr. McCauley wanted to be certain that the Council understood and concurred with this continued partnering with Discover the Center, even though Discover the Center would not be receiving any funds directly for its own operations from the City. The Council indicated that the outline of activities by Mr. McCauley was consistent with their view. Councilmember Hilstrom made the point that she felt it more important to provide funds for assessment stabilization and the street projects than many of the social service funding issues that were being discussed by the Council. Several Councilmembers commented on the distinction between the City's involvement in the social service activities and issues relating to street funding and assessment stabilization. The Council consensus for social service requests for the budget was as follows: $ 8,843 Five Cities Senior Transportation $ 4,000 North Hennepin Mediation Program $16,663 Northwest Hennepin Human Services Council $43,994 Project PEACE $ 2,000 Brooklyn Center Youth Football $ 2,500 Brooklyn Center Youth Hockey $ 2,000 Brooklyn Center Community Band 10/21/96 -4- I OVERVIEW OF CITY'S TAX INCREMENT FINANCING DISTRICTS AND ISSUES Mr. Bob Thistle, Springsted, Inc., presented the Brooklyn Center TIF Districts Status Analysis, dated October 14, 1996. This report depicts the current status of the City's existing tax increment financing district. On a positive note, TIF districts 2100 (Brookwood- Housing) and 2101 (Earle Brown- Redevelopment) appear healthy and should meet financial obligations over the life of the districts. If projected increment is held constant, internal loans are entirely repaid by 2004. Net tax increments collected thereafter would be about $9.9 million. These funds would be available for eligible purposes per specifications in the TIF plans for the districts. TIF district 2102 is comprised of redevelopment subdistricts 2102 (Brooklyn Blvd. /69th), 2147 (Willow /252, ISD #11), 2148 ( Brookdale area), and 2149 (Willow /252, ISD 4286). Subdistricts 2102 and 2149 are currently generating increment and anticipate four new developments in 1996 and 1997. These two subdistricts appear relatively healthy and should meet financial obligations of the district over the long term. Subdistricts 2147 and 2148 are not generating increment due to market value reductions on selected parcels (current value < base value). Further analysis and monitoring of the subdistricts are recommended. Due to the significant decrease in value of Brookdale (subdistrict 2148), it does not contribute to the district. Options to rectify this situation need to be considered. A) One option is to take selected parcels (with substantial loss) out of the district in 1996 and put them back in 1996 (or 1997). Since the City is within five years from certification of the TIF district, these parcels could then be added back to the subdistricts at their current (lower) values. This requires action immediately to start the process to modify the district. Dropping selected parcels in 1996 and putting them back in 1996 would be relatively easy to accomplish and is allowable under current tax increment status. Dropping the parcels in 1996 and returning them in 1997 may be affected by new special legislation and change in Brookdale ownership. "Knock down" districts reflect current value and encourage growth P 8 g in the area, according to Mr. Thistle. B) Wait and see is another option. Base values may drop on their own as sufficient prior years tax petitions become successful. This is riskier and could take years to transpire. It is also possible that new development could occur in the subdistrict in the years before the base values might be adjusted downward. Then, there still may be no positive captured value and no tax increment. Both Mr. Thistle and City Manager McCauley fielded a number of questions and comments from Council. Council consensus was that Mr. McCauley should pursue the option of a knock down 10/21/96 -5- district -- pulling selected parcels in 1996 and returning them in 1996 at lower base values. He will contact Hennepin County immediately regarding this process. A motion by Councilmember Carmody and seconded by Councilmember Mann to continue past 11:00 p.m. and leave remaining items on the agenda to carry over to another meeting passed unanimously. • motion to break passed unanimously. The meeting reconvened at 11:16 p.m. ADJOURNMENT • motion by Councilmember Carmody and seconded by Councilmember Mann to adjourn the meeting at 11:16 p.m. passed unanimously. City Clerk Mayor Recorded and transcribed by: LeAnn Larson 10/21/96 -6-