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HomeMy WebLinkAbout1995 07-17 CCM Special Work Session 7 p.m. 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 JULY 17, 1995 CITY HALL COUNCIL CHAMBERS ALL TO C ORDER O The Brooklyn Center City Council met in special work session and was called to order by Mayor Myrna Kragness at 7:07 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kristen Mann, Debra Hilstrom, and Kathleen Carmody. Also present were Interim City Manager Cam Andre, Director of Community Development Brad Hoffman, Community Development Specialist Tom Bublitz, and Council Secretary Barbara Collman. Two members of the Housing Commission were also present. Councilmember Barb Kalligher was excused from tonight's meeting. WORK SESSION OVERVIEW The Director of Community Development stated the purpose of this meeting is for Staff to understand the Council's vision for the City. He suggested topics for discussion but asked the Council to determine which are relevant. CODE ENFORCEMENT /POINT OF SALE /TRUTH IN HOUSING ORDINANCES Councilmember Carmody stated she believes the biggest problem with housing in Brooklyn Center is houses needing maintenance. Many houses look run down but are up to code. This contributes to the image problem. The Director of Community Development discussed point of sale as a form of code enforcement. He also detailed the difference between point of sale and truth in housing. Point of sale is when, prior to closing, the owner must deal with the problems which have been noted. Truth in housing is when any prospective buyer is given written information regarding the physical conditions of the home. He added this subject has been discussed in Brooklyn Center in previous years. Currently it has been before the Housing Commission which is split between either a point of sale or truth in housing ordinance adoption. Councilmember Mann noted home buyers may not be knowledgeable even though they are given a written document. The sale is not contingent on repairs being made and inexperienced buyers probably do not understand. 7/17/95 - 1 - The Director of Community Development stated the decision between point of sale and truth in housing comes down to the Council's philosophy and what it wants to accomplish. If the desire is to "maintain" the housing stock, the Council should consider point of sale. Councilmember Hilstrom asked what the implication would be on the large senior population which may be trying to sell homes. She asked whether point of sale would lead to sellers renting out homes they could not sell. The Director of Community Development displayed a map showing non - homesteaded single - family properties. Many of them are rental properties, but the number is decreasing. Regarding the concern about senior citizens, he noted the implication to seniors would depend upon the criteria written into the program. The Community Development Specialist commented realtors take issue with the point of sale approach. They say senior citizens often have the cash available to make corrections but sellers with little or no equity in the home do not have the money to make repairs. He explained the realtors' argument for truth in housing. He added the Council simply needs to choose which approach will accomplish the desired result. Councilmember Carmody noted the cost of an inspection in Crystal is $80 to $90. It would cost more to use truth in housing. She said slie would rather concentrate on code enforcement than to make the seller pay the costs of repairs. She would rather not change programs at all than to go toward truth in housing. Mayor Kragness noted code enforcement covers all houses rather than just houses which are for sale. She prefers to handle the situation using code enforcement. The Interim City Manager noted entry into homes to do code enforcement is more difficult than gaining entry when the house is for sale. Councilmember Mann stated she would prefer to keep the point of sale approach due to naive home buyers purchasing first homes. Councilmember Hilstrom asked how many Staff personnel would be necessary in order to carry out in -house inspections for code enforcement. The Director of Community Development thought it would be necessary to have one full -time person plus a clerical support employee for that person. The Community Development Specialist commented it would take a couple of years to get the program underway. The Interim City Manager stated the City would schedule fees to cover the costs incurred. The Director of Community Development noted there would need to be re- inspections as well as inspections. 7/17/95 -2- Councilmember Mann asked whether the inspections would help in the condemnation process. The Director of Community Development said it would be necessary to decide whether the City wants to buy out the property owner. Councilmember Hilstrom noted trends indicate that first -time home buyers stay in their homes awhile. She asked, on average, what it costs to bring a house up to code at the time the buyer wants to sell the house. Councilmember Mann commented it would depend on what repairs and replacements have been deferred, but bringing it up to code could be quite costly. Councilmember Hilstrom commented a first -time home buyer could be in a situation where he or she did not realize a furnace, for example, needed to be replaced as it worked adequately for him /her. There was a general discussion regarding education of first -time home buyers. The Director of Community Development explained there is a turnover rate of approximately 500 homes per year in Brooklyn Center. Therefore, in 20 years, almost every home would be inspected. That is one way of achieving a level of code compliance. He noted Staff would design a program if the Council deems it is worthwhile. Councilmember Mann stated that would lead to point of sale and conversion to rental property, which is a loss of value for the neighborhood. She stated she would prefer to do something which does not require the seller to have responsibility for all compliance. Councilmember Carmody agreed. Mayor Kragness also agreed, stating that then the repairs must be done. There might be negotiations, but at least a code violation would be caught and the repair would be taken care of. The Community Development Specialist said it is not unusual for Staff to receive calls from new owners stating they have discovered problems. New owners often do not have extra money to make repairs. Councilmember Carmody stated the program may force some sellers to decide not to sell. Councilmember Hilstrom asked if an owner would then make the property a rental property. Councilmember Mann noted an owner converting a house to rental property would have to bring it up to the rental code. Councilmember Hilstrom asked whether houses are being rented without license to do so. The Director of Community Development stated he is sure there are some which are not licensed. 7/17/95 -3 - i Councilmember Hilstrom stated if she must make a choice she would lean toward code enforcement due to the visual image concern. It should be a high priority to get properties to the same level in order to make neighborhoods look better. Councilmember Mann asked whether certain neighborhoods could be targeted. The Director of Community Development stated point of sale should be used if the goal is to maintain the housing stock. If the main concern is visual image, a different program is necessary. The Director of Community Development stated he does not believe point of sale programs fully pay for themselves. There are hidden costs. The Interim City Manager noted an analysis could be done and fees set accordingly. The Director of Community Development indicated that the inspections division completed over 7,000 inspections last year. Attention has been focused on apartment complexes and that work is not finished. Four or five more complexes need to be inspected. He asked whether the housing inspectors time should be split between apartments and houses. He noted the police are also commissioned to enforce the housing maintenance code. After another full -time officer is hired, there will be two full -time and one part-time inspector in the police department. Both departments respond to complaints rather than a pro- active approach. If there were three officers, code enforcement could cover seven days a week, 16 hours per day. However, he stated he would like to see what changes can be accomplished by reorganization of the program. Councilmember Carmody asked why inspectors can't go around and note violations rather than everything having to be called in. Councilmember Hilstrom also noted residents are afraid to call in complaints regarding neighbors. They would prefer the offender to be caught without their involvement. The Interim City Manager stated the code officers need better training and supervision. They should be given a checklist. Perhaps the City should be divided into areas and the officers assigned to cover a certain area. Councilmember Hilstrom pointed out inspectors need the proper equipment to perform the job of inspecting. ' The Interim City Manager agreed. He stated there should be distinct job descriptions. Also, employees who answer the phones to take complaints should have more knowledge. It is possible to obtain better results with the Staff already in place. 7/17/95 -4- �I The Interim City Manager commented there is an indirect benefit of a marked squad car driving on City streets. For example, speeders might slow down, not knowing it is a code enforcement officer rather than a police officer. Councilmember Hilstrom reiterated it is important the code enforcement officer role be defined and the equipment be available. Councilmember Carmody noted the Police Department would like to see the code officers hired to do regular police work. Councilmember Hilstrom described two situations in which proper resources were not available for police department personnel. There was a general discussion regarding the use of code enforcement officers by the Police Department to dispatch, etc. Councilmember Carmody stated that is part of an overall problem in the Police Department. Councilmember Hilstrom repeated goals and priorities for code officers need to be set and information needs to be available before the budget is considered. The Director of Community Development suggested Staff should report back to the Council on how to resolve the issue using the resources already available or that it cannot be done. There was a consensus by the Council to have Staff report back. The Community Development Specialist asked for direction as well. Councilmember Mann stated a model point of sale ordinance should be drafted and referred to the Housing Commission. NEIGHBORHOOD GROUPSWEIGHBORHOOD REVITALIZATION The Director of Community Development asked what role if any the Council would like the City to have assisting neighborhood groups organize. Councilmember Mann noted the Riverwood group is a model example. She asked what could be done to activate neighborhoods. She noted usually groups form in response to an issue. Mayor Kragness left the meeting at 8:10 p.m. There was further discussion regarding forming neighborhood groups. Mayor Kragness returned to the meeting at 8:12 p.m. Councilmember Carmody commented residents do not know who to call for information. 7/17/95 -5 - The Director of Community Development stated the ideal situation is when neighborhood groups organize on their own. It generally doesn't work for the City to set one up. Councilmember Hilstrom questioned whether or not the City should take a role in bringing about neighborhood groups. She added, however, the City Hall could be a meeting place and Staff could be a resource, but the City itself should not take the role of organizing the groups. Mayor Kragness noted the Riverwood group has offered to help other groups get started and that offer should be made known to the public. Councilmember Hilstrom suggested a letter be distributed through the Crime Watch groups. If residents are not interested in a neighborhood organization, one cannot be forced. Mayor Kragness suggested an article be published in the City newsletter or the Sun Post. Councilmember Carmody repeated that residents need to know who to contact at City Hall. Tom Kouri of the Riverwood group, stated residents need to take ownership of the group. However, the City could help by printing a group's newsletter on a temporary basis. Councilmember Mann disagreed because a group would then come to expect that service. If a group is truly driven, it will find its own resources. There is a question of how far the City should go in facilitating. The Director of Community Development commented the Riverwood group could make its offer to help other groups in its own newsletter and then the City newsletter could include the Riverwood newsletter. There was general agreement on the suggestion. Mayor Kragness outlined the points of such an article and urged Mr. Kouri to write it. He agreed. Councilmember Carmody mentioned the City could supply groups with a booklet which describes how to organize a neighborhood group. The Community Development Specialist asked the Council the direction it would like to see the Earle Brown group go. Councilmember Mann noted they should follow the Riverwood example. After one meeting, the group should proceed on its own. The Community Development Specialist suggested that perhaps the group was set up with too much staff's involvement from the outset. The Director of Community Development commented it is not possible for Staff to do as much for all the neighborhoods as it requires too much Staff time. 7/17/95 -6- 6637 HUMBOLDT AVENUE NORTH The Director of Community Development noted the building at 6637 Humboldt Avenue North is now vacant. He made suggestions for action rather than allowing the building to be boarded up and sit vacant. First, he noted Jerry Stephens is interested in developing the land there, which would place the property back on the tax rolls. Councilmember Hilstrom suggested an RFP be issued. Councilmember Mann indicated maybe the time has come for the Planning Commission to consider rezoning the area. There was further discussion regarding how Mr. Stephens might develop the land. The Director of Community Development also noted INVITE, Inc., an organization which works with youth, is looking for a place to meet and could be allowed to use the property. Third, he mentioned Northwest Hennepin Human Services would like to operate services from the location but would not buy the property. The two groups interested in using the property need to be given an answer as to whether the Council is even considering it or has determined the property will not be used in that way. Mayor Kragness stated a long -term solution should be found rather than a short-term solution. Councilmember Mann agreed. Councilmember Hilstrom agreed but noted consideration must be given to the implication development would have on Humboldt Avenue since it was just worked on under the understanding that it would continue to be residential. The Director of Community Development stated action needs to be taken quickly since it is vacant and it is not desirable to board it up as it would be a liability. Another option is to take the building down. Councilmember Hilstrom asked how long it would take to issue an RFP and get it back in order to know whether any developer is interested in the property. The Director of Community Development stated it is a low priority area for development. He discussed the church and that its decision is slow in coming. Councilmember Hilstrom asked what Staff is recommending for the property. The Director of Community Development stated he would prefer to level the building. If the City allows a service to use the building, the City will begin to support the service. Councilmember Mann asked whether vacant property is more attractive to a developer. The Director of Community Development said it is. 7/17/95 -7- Councilmember Mann asked whether the building could be used for a burn site for the Fire Department. The Director of Community Development said it could. Councilmember Mann asked whether using it as a burn site would lower the City's cost to demolish it. Councilmember Hilstrom expressed concern that the building not end up like the last one which continued to stand boarded up for a long period of time. If the building is to be torn down, it should be down immediately. The Director of Community Development said the approach this time would be to set a demolition date first and then tell the Fire Department and the Police Department they can use it until that date. Mayor Kra ness asked if there is a possibility the building could be sold. The Director of Y g Community Development said there is. Councilmember Carmody left the meeting at 8:40 p.m. The Interim City Manager suggested Council request Staff to bring reports back at a later date. The Director of Community Development said he has been holding off the two services which want to use the building and he needs to get an answer to them. There was a consensus not to let the services use the building as the goal is to have the property returned to the tax rolls. Councilmember Carmody returned to the meeting at 8:41 p.m. WILLOW LANE The Community Development Specialist stated the condemnation process has begun on the hotel. The tax value is $375,000 and the owner wants $500,000 to $575,000. The appraisal was for $275,000 to $375,000. The City has offered to pay $275,000 but the offer was rejected so the condemnation process is continuing. A commission has been appointed and it has scheduled a viewing. Following the viewing, a hearing will be scheduled to be held by the end of August. By November 17, the commission has to make its award with a 40 day period allowed for an appeal. Theoretically, the City could take possession of the building shortly after November 17. Councilmember Hilstrom questioned whether perfoming a quick take was an option. The Director of Community Development said that is a possibility but it would take 90 days. With a condemnation, the City can back out, but with a quick take the cost is locked in. He discussed the asbestos removal matter. 7/17/95 - 8 - Councilmember Hilstrom noted the same problem could develop where the building could sit vacant into winter as the process drags on. The Director of Community Development agreed that was a possibility. Councilmember Hilstrom asked whether there are any other choices. She asked if it was necessary to slow down the process. She expressed concern that the building not stand vacant. The Community Development Specialist agreed with her concern. He noted the asbestos removal can be done in the winter but it would cost more if done then. He offered to research the matter. Councilmember Hilstrom questioned what action would be best for the neighborhood. The Director of Community Development noted the City could try to get bids on the property. The Community Development Specialist stated the condemnation process has been difficult and future events are somewhat unpredictable such as the Commission's award. Councilmember Hilstrom asked what the City's liability would be if the building were boarded up and people got into the building. The Director of Community Development answered the City could be sued and a court could find that the City was negligent in some respect. Mayor Kragness noted a demolition could take place in winter. The Community Development Specialist stated Staff is currently trying to gain legal access to the building within the next month in order to check on the asbestos. He repeated that the asbestos abatement can be done in the winter although it is more costly to do it then. The Director of Community Development commented the property is not only unsightly but there is a history of many police calls to the location. He said the Council will be kept informed of progress on the issue. The Community Development Specialist discussed studies which have been done regarding the Holiday station site. He stated it is hoped the matter will be closed on Friday. It will be necessary to pay relocation costs on both properties. A business relocation is also necessary but it has a cap of $20,000 as dictated by statute. He also discussed the Premier mechanical business. Mayor Kragness asked whether Premier will relocate in Brooklyn Center. The Community Development Specialist said Premier owns property somewhere outside of Brooklyn Center and plans to relocate there. He also noted the tenant must be given at least 90 days notice to vacate so this will necessitate the EDA entering into some form of short term lease with Premier mechanical. 7/17/95 -9- The Brooklyn Center City Council recessed at 8:56 p.m. The meeting of the Brooklyn Center City Council was reconvened at 9:04 p.m. SOUTHEAST NEIGHBORHOOD Councilmember Carmody stated she would like to discuss problems in the Southeast neighborhood. She noted the strip of 53rd Avenue North, which has small lots. Mayor Kragness indicated Hennepin County is going to be looking at options along Humboldt Avenue. Councilmember Carmody stated that program might not go through and even if it does it will not address all the problems in the area. The City needs to take some action. She indicated the area has some substantial problems. Councilmember Hilstrom noted she had heard an idea to take out the houses up to the parkway. Councilmember Carmody asked whether the lots could be converted to standard size. Perhaps this could be done from 55th Avenue North to 53rd Avenue North from Humboldt Avenue North to Camden Avenue North. Councilmember Hilstrom noted if it were made a high priority it could involve code enforcement and scattered site acquisition. Then two lots could be combined into one. Councilmember Carmody stated with that method progress would be very slow. The Director of Community Development stated if the Council chooses such action to be a priority Staff would have to consider how many lots would be available and then acquire and combine them. Councilmember Hilstrom said the process would probably be expensive. The Director of Community Development stated the Tax Increment Financing (TIF) plan which is currently in place requires the City to spend 15 percent of funds on housing- related activity. Therefore, those funds could be used for buying houses and tearing them down. However, the TIF district is to be a revenue source for the next 25 years, so priorities must be set. He reviewed the projects which will fall under the TIF district funding. He noted most of the projects will pretty much pay for themselves. He explained more in detail concerning the TIF district revenues. He stated by the year 2,000 the district should cash flow the activities currently under consideration. Councilmember Carmody noted that then five years from now such a project as was discussed could be undertaken. 7/17/95 - 10- The Director of Community Development indicated Staff will be presenting a TIF bond sale to the Council soon. RFPs have been sent out and it would be preferable to know there is a plan in place rather than holding the lot without definite plans. The Director of Co u mm n' Y Development said the lan discussed could be accomplished with it P P bonding and a set plan. Councilmember Carmody noted this discussion concerns a long -term plan but she would like to see the plan go forward which involves taking out one block of houses and extending the park. The Director of Community Development commented an entire work session on TIF would be beneficial to set plans. He explained the current status and the implications of further developments. Councilmember Hilstrom asked when the revenue would be received. The Director of Community Development stated it is an issue of planning and timing. A TIF bond issue could be done at any time as the money is coming. There will be several sources over the next five years. The cash flow will begin next year and then double every year. He added the term "housing- related activities" required by TIF can be very broad. Councilmember Hilstrom asked whether the money could be used to buy houses at 69th and Brooklyn Boulevard. The Director of Community Development said it could, and that he would like to discuss these matters with each Councilmember individually. Councilmember Mann stated there should be a work session regarding TIF and then priorities should be set. Councilmember Hilstrom agreed. Councilmember Hilstrom asked whether there is a negative side to using the TIF funding. The Director of Community Development said there is a negative side; in particular, the program is reliant upon actions by the legislature, also to some extent some tax dollars are potentially diverted from the general fund. SCATTERED SITE ACQUISITION AND REDEVELOPMENT The Community Development Specialist stated Staff needs to make an active effort to build up the list of builders who may be interested in scattered site lots. He discussed how Richfield and Bloomington accomplished this. To get results, it will be necessary to use Staff time. He asked the Council whether the matter is a priority and whether it should be added to a work session on TIF. He noted the City currently has five lots from MnDOT which are buildable but all of which may not be desirable for development. There is a total number of seven buildable lots available. Mayor Kragness asked how the lots are priced. The Community Development Specialist said the lot on Emerson is priced at $18,500 and the lot on Bryant is priced at $24,000. Both are 7/17/95 - 11 - good -sized corner lots. He expressed concern that there are not any builders available who are I� interested in the lots at that price. Councilmember Mann noted it sounds as though the City has many options if there was enough Staff time to ursue them. She suggested using community college students. The Community P gg g Y g Y Development Specialist said the idea -of using the technical college is being explored. He stated it doesn't appear things will move forward using the current system. It is not preferable to have only one builder to use. He said Staff needs direction regarding in which area to spend Staff time. Mayor Kragness stated the issue should be addressed at a work session. Councilmember Hilstrom noted if there are buildable lots it is a priority to get houses on the lots. In addition, if a lot is not buildable there should not be a great deal of time spent on it. The Community Development Specialist stated Staff needs time to build relationships with builders. Building in -fill housing is a unique area of housing construction. Mayor Kragness indicated a lot should be offered only if it will be built on. There was a consensus by the Council. The Community Development Specialist said that builders want to know there will be a buyer. Builders do not want to build "spec" homes. Relying on one builder and simply advertising lots is not sufficient. The Director of Community Development noted lots have been acquired as they have become available. Councilmember Hilstrom asked whether the money should be invested in an area the Council definitely wants to acquire. Councilmember Carmody commented only one house per year is acquired through the scattered site program. The Community Development Specialist said two or three houses have been acquired each year for the past several years. The program is small but involves a great deal of money. Mayor Kragness noted two lots have been used by Habitat for Humanity. Councilmember Hilstrom noted such a use gets the property back on the tax rolls. There was a discussion of the holding costs involved. The lot at 66th and Bryant was obtained one or two years ago, and the lot on Emerson was obtained one year ago. Councilmember Hilstrom stated properties should not be acquired and then just sit idle. Councilmember Mann agreed. 7/17/95 - 12- The Director of Community Development said this discussion would fit in with the work session on TIF. MORTGAGES The Director of Community Development suggested the City could work with banks to create loans with lower interest rates or second mortgages to be used for property updating. Councilmember Mann agreed the idea should be researched. The Director of Community Development said TIF would be involved. Councilmembers discussed whether Council could guide the use of the money since it would be helping to make it available. The Director of Community Development said that issue would have to be considered in program development. Language could be built in which said something like, "Mortgages will be made available for the following purposes...." There could also be credit enhancement if eligible repairs were completed. ADJOURNMENT There was a motion by Councilmember Hilstrom and seconded by Councilmember Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 9:48 p.m. I Deputy City Clerk Mayor Recorded and transcribed by: Barbara Collman TimeSaver Off Site Secretarial 7/17/95 - 13 -