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HomeMy WebLinkAbout1995 05-02 CCM Special Work Session NIINUTES 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 MAY 2, 1995 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special work session and was called to order by Mayor Myrna Kragness at 7:02 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kristen Mann and Kathleen Carmody. Also present were City Manager Gerald Splinter, Director of Public Services Diane Spector, Finance Director Charlie Hansen, Director of Community Development Brad Hoffman, and Council Secretary Barbara Collman. Councilmember Barb Kalligher was excused from tonight's meeting. Councilmember Debra Hilstrom arrived at 7:22 p.m. REVIEW OF REDEVELOPMENT PROJECTS The City Manager explained the ongoing projects would be reviewed so the Council would have an opportunity to ask questions and understand the status of projects begun by the past Council. He listed the projects under the categories of revenue - producing and revenue - using, although some fall under both categories. He noted the projects are suggested and most do not produce revenue. It is necessary to remember to deduct 15 percent for the Tax Increment Financing (TIF) Housing Fund when discussing revenue. The Director of Community Development gave the histories of the projects, including studies leading to their development which provided guidelines for planning. The Director of Community Development explained a new project area was created, in 1994 for the purpose of utilizing TIF. The area includes all but a small portion of Brooklyn Center. Through special legislation for Brooklyn Center, a TIF project would be exempt from State Aid funds and LGA penalties. One purpose of obtaining the TIF district was to be in a position to aid Brookdale in its redevelopment, since Brookdale is important to the future of Brooklyn Center. He explained why certain areas were or were not included in the TIF district. Councilmember Hilstrom arrived at 7:22 p.m. 5/2/95 - 1 - Councilmember Carmody asked for a specific listing of what Staff considers the "gateway" areas of Brooklyn Center. The Director of Community Development said Highway 252 and Interstate 94 and Highway 100 and Brooklyn Boulevard are the main gateway areas. The Director of Community Development then talked specifically about the areas in the TIF district which are slated for redevelopment. He discussed when and how properties were acquired or the current status of the acquisition, and the intended use of the areas. The Director of Community Development then reviewed each project in detail. The Director of Community Development discussed four parcels of land in the Willow Lane Lyn River Apartments area, including one parcel the City already owns, the Holiday station, multi- family units, and the motel. The Director of Community Development discussed the condemnation issues regarding the motel. He explained there are two types of condemnation, quick take and regular. He discussed the ramifications of each and noted it is always possible to convert from regular to quick take by deposit the appraisal amount of the property with the District Court. In regard to the Holiday station, the Director of Community Development stated the City denied a building permit to the business, which led to a lawsuit. Ultimately the City agreed to buy the property and is in the process of doing so. The City needs to make a decision about the Lyn River Apartments. There are no funds available to purchase them at this time. They need to either be repaired or sold. Council should consider whether further redevelopment in the area will still be desired if the apartments remain in their present location and use. The City Manager commented there is not enough funding available for all projects so priorities must be set. There will probably be a need for a TIF bond issue at some point for redevelopment funding. Such a bond issue would only require a Council vote and would not count against our General Obligation debt limit. The TIF revenue would be pledged in this case. The Director of Community Development discussed the positive and negative aspects of the proposed General Litho project. He noted the property would be purchased by the City from the Shingle Creek Land Company for approximately $135,000. He discussed the status of parking issues relating to this and other sites in the area. The Director of Community Development discussed the 69th Avenue project. He stated there will be a total taking in some areas due to the widening of Brooklyn Boulevard. In some areas, there will be a partial take. Many options for dividing the properties and rearranging business facilities have been mentioned but no final decisions have been made. He reviewed the options with the Council. 5/2/95 - 2 - In the area north of 69th Avenue, a medical clinic is considering the site for its location. The clinic's primary requisite is high traffic to provide exposure for the business. Councilmember Hilstrom asked when decisions will be made on these issues. The Director of Community Development said decisions should be reached by June or July. He suggested a Request For Proposals (RFP) are in the process of development for 69th Avenue and Brooklyn Boulevard. The City would not have to act on the RFPs but they would bring out the options. Regarding the widening of Brooklyn Boulevard, the Director of Community Development noted some properties would be taken. Five homes on the east side of June Avenue may be torn down and the land used to create a buffer between the neighborhood to the east and the retail area. That decision will be made at a later date. The responses to the RFP will provide a great many answers and help in the decision - making regarding the St. Al's property. Councilmember Hilstrom suggested there be a private road to the senior housing complex off Brooklyn Boulevard. Councilmember Hilstrom indicated disagreement with buying property for the purpose of building a street for access. The Director of Community Development said the property would not be acquired for the express purpose of building a street. The total plan is constantly changing depending on involved parties. The final design will be determined later. Councilmember Hilstrom asked when it will be a certainty which parties will be involved. The Director of Community Development said it should be clear by July at which time individuals have been able'to execute deals in the area. The RFP is already being designed and will be presented for approval soon. The City Manager agreed with Councilmember Hilstrom the property should not be purchased for the sole purpose of building an access road. However, if it is necessary for a total package with a larger project, it may be acceptable. The Director of Public Services noted evaluations are underway concerning the necessity of signals at the intersection of 70th and Brooklyn Boulevard. There was a discussion of the left turns in the area. The RFP will be distributed to approximately 25 developers through several mediums, which she discussed. She also noted traffic flow in the area is a concern and a buffer may be a good idea. The Director of Community Services brought up additional ideas and issues for the Council to consider over the coming weeks. There was a discussion regarding the Phillips 66 station. There are internal problems in the business. There has been a change in management and there is a great deal of uncertainty. The company's current building permit is expiring and is in a gray area. The RFP for the project Will go out in early su►nmer and the project will be more focused following that process. 5/2/95 - 3 - The Director of Community Development discussed current events with the Brookdale Mall_ Options are becoming apparent. The County and the State may both be involved and have parts in financing. Councilmember Hilstrom asked when a decision will be reached. The City Manager said a decision should be made in the near future. The Director of Community Development suggested the Council make its wishes known as far as areas to be developed in the future. He noted a grocery store has been a topic of much discussion in the community. Councilmember Hilstrom asked when a project such as a grocery store would be forthcoming. The Director of Community Development asked what area of the City should be developed next. Mayor Kragness commented a grocery store is important. The Director of Community Development agreed and said the timing for such a project is right and there are potential locations. Councilmember Hilstrom asked whether there is a vacant location which could be recommended to a grocery concern. The Director of Community Development said there are not really any vacant locations. Councilmember Hilstrom asked how the City can do aesthetic renovations, such as Town Square, when it says it cannot afford do work on blighted areas. The Director of Community Development noted choices must be made. He also commented more money will become available as the TIF district ages. Councilmember Carmody suggested the City crack down on ill- repaired parking lots in the City's shopping areas. The Director of Community Development agreed that is an area which needs to be addressed, and will be. Mayor Kragness said business owners should be told the City will not tolerate these problems with parking lots as they are a liability risk. Councilmember Mann commented, if a grocery business is not pursued, groceries will be built in neighboring cities and then will not want to locate in Brooklyn Center because of the close proximity between stores. Mayor Kragness indicated a grocery business should have high priority for the Council. Brooklyn Center residents in the southeast area in particular are without a grocery store and many residents there are senior citizens. Councilmember Hilstrom asked whether Westbrook Mall. is currently looking closely at Brookdale Mall. The Director of Community Development said they have long -term leases going until 1997 and 1998. 5/2/95 - 4 - Councilmember Carmody stated people think businesses are leaving because some properties are vacant are some are not taken care of. If Brookdale Mall were attractive, it would influence the attractiveness of the entire city. The Director of Community Development agreed Brookdale's appearance and the obtaining of a grocery business are key issues for Brooklyn Center. Councilmember Mann asked whether State funds might be available to help. The Director of Community Development indicated 1995 would not be a good year to obtain funding but the Ciuty should always consider other revenue sources on a project by project basis. The City Manager said it is a priority to attempt to obtain revenue producers as soon as possible in order to raise money for the revenue users. The Council's priorities appear to be the Brooklyn Boulevard reconstruction project, the Willow Lane and 66th project, Brookdale Mall, and a grocery business. Councilmember Hilstrom asked where the Humboldt Avenue properties owned by the City fit into the plan. The City Manager said the properties fit in wherever the Council decides. A developer has shown an interest in the site. Information will be provided to the Council as that issue progresses. The Director of Community Development stated several projects are not on the list due to an oversight. He said he does not know where each fits into the plan but rather the Council needs to provide staff with the communities priorities. Tile City Manager suggested a list be compiled of all the projects. Then, Council could decide on a priority order of those listed and could also add others. The list would not be split into' revenue users and revenue producers. Councilmember Mann and Mayor Kragness agreed with the idea. Mayor Kragness commented each Councilmember could number the projects individually and then the group could decide together. Councilmember Mann commented Erookdale is a major concern and should maybe be the number one priority. Other City businesses would be impressed if they saw Brookdale reinvest in the community. Mayor Kragness and Councilmember Carmody agreed. The Director of Community Development recommended a discussion of projects be put on an agenda. Staff will create a list for Councilmembers to amend and prioritize. The City Manager concurred and said the list may be available for next Monday's City Council meeting. The Council stated they will discuss the item further at their next Council meeting. REVIEW OF SURVEY QUESTIONS FROM DECISION RESOURCES There was a short discussion regarding the draft of survey questions. Both Staff and Councilmembers expressed dissatisfaction with the grouping and language of the questions in the first draft. Specifically, Councilmember Hilstrom commented the questions will not adequately isolate the issues. 5/2/95 - 5 - PRELIMINARY DISCUSSION REGARDING 1996 BUDGET The City Manager explained the 1996 budget document has, for the first time, itemization by activity. He asked for reaction or recommendations concerning the format. Councilmember Mann stated the new format is easier to understand than the format used previously. The Finance Director noted an attempt will be made to use the same format for the budget as is used for the annual report. There was a discussion regarding the fund balance, including where the funds are generated, whether they are carried over, and their use. The fund balance is needed as operating capital during the first six months of the year before taxes are paid. The Finance Director said the fund builds up over a period of years. Surplus at the end of each year is put into the fund. The surplus comes from actual expenditures being lower than original budget estimates. The annual June financial report details the amount in the fund balance. The City Manager commented there is a formula which guides appropriations of additional monies when necessary. However, such action has not been necessary in the past as the fund balance has been sufficient. Mayor Kragness asked about the budget in relation to LGA and HACA cuts. The City Manager said there are contingencies for one year for that purpose. Council member Hilstrom asked how a budget can be planned at this time when there are pending cuts. The City Manager said the plan is to go forward with the budget as usual with a warning that cutbacks may be necessary. There was a discussion concerning tax assessments of retail malls and refunds of tax dollars. Brookdale Mall will come up in the fall. Councilmember Hilstrom asked how a shortfall in the budget would be recovered. The City Manager said the fund balance depends on the point the budget is at, at a given time during the year. It is a balancing act and estimating is the only way to plan. Three percent of property taxes are not collected annually. The Finance Director said it takes two years to determine whether estimates were accurate and draw conclusions. The City Manager stated there is a trend away from property taxes to user fees. For example, liquor license fees could be increased and there could be user fees for storm water utility, street use, and street lights. Such a practice would take fees off the taxes but the money would still come from residents and businesses. Taxes are currently slanted toward all non- homesteaded properties. He asked the Council to consider the idea of more user fees. 5/2/95 - 6.- Councilmember Hilstrom questioned whether the actual procedure wouldn't be to first decide on the amount of money needed in the budget and then decide on fees. The City Manager cautioned that in the future State Aid (LGA and HACA) may need to be replaced. The Finance Director commented producing monies will not become easier and citizens will react. He added the City already charges residents for false alarm fire and police calls after a certain limit is reached. Inflationary pressures and the loss of CDBG funding are considerations. He stated revenues will come out of new projects but the taxes are always based on the value of the year before. Councilmember Mann asked the date for a joint meeting with the Financial Commission to discuss the budget. The Finance Director stated such a meeting is scheduled in August. Councilmember Mann and Councilmember Hilstrom indicated there has been discussion of holding a joint meeting sooner than August, as August is almost too late in the process. The Finance Director said an earlier meeting can be scheduled. He added there can be major changes in the month of August following notification of state funding allocations. He said he would supply a list of possible dates for a joint meeting at the next Council meeting. Councilmember Hilstrom commented more than one joint meeting may be desirable. Mayor Kragness indicated the Council would like to start the budget process early in order to be very thorough. The City Manager noted the budget is more complex than it appears to be on the surface. Mayor Kragness said the new budget document is more understandable and easier to read. OTHER BUSINESS There was discussion regarding work session agendas. Councilmember Mann stated the Council should study prioritizing of money from the storm drainage utility. The City Manager said the issue will be covered in the budget consideration of the Storm Water Utility and the Capital Improvements Program. The City Manager commented a resident has brought up the issue of travel trailers parked in driveways and also unpaved driveways. Council should consider if it wants to take any action. Mayor Kragness stated she had received calls concerning water fountains in parks which are inoperable. The City Manager explained the drains are plugged with sand by vandals. 5/2/95 - 7 - ADJOURNMENT There was a motion by Councilmember Mann and seconded by Councilmember Carmody to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 10:06 p.m. J)6� �6� - n�� Z. Deputy City Clerk Mayor Recorded and transcribed by Barbara Collman TimeSaver Off Site Secretarial 5/2/95 - 8 -