The URL can be used to link to this page

Home My WebLink About1997 03-31 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 MARCH 31, 1997 CITY HALL 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 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe. Also present: City Manager Michael J. McCauley, Community Development Director Brad Hoffman, and Council Secretary LeAnn Larson. I. LOGIS Mike Garris, Executive Director of LOGIS, inquired whether the City might consider issuing revenue bonds on behalf of LOGIS. LOGIS currently leases space within the Freeway Business Center ITT 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 located at 69th 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. LOGIS is willing to make a payment in lieu of taxes to the City should it be w alto ed to build in Brookl yn Center: Dave Kennedy, with Kennedy & Graven, noted the similarity to the industrial revenue bonds issued by the City in 1979. The City is allowed a maximum of $10 million in bank - qualified bonds in a given year. Mr. Gams explained that LOGIS would be paying the delinquent taxes on the parcel should the concept of issuance of bonds by the City be approved by the Council. Community Development Director Brad Hoffman stated that access impediments make this parcel less marketable than other commercial land. Council questions and comments centered on the loss of revenue and tax base if thi s P arcel became tax exempt; little remaining developable land in the City; and, possible bonding within 3/311/9 7 _1 _ I 1997 already for Brookdale, ponding, Police DepartmenVTire Department needs, and special assessments. Councilmember Hilstrom asked how much tax exempt land is presently in the City and the subsequent tax base "lost." Mr. Hoffman will look into this matter. Council consensus was unanimous in opposition to the idea of issuing revenue bonds on behalf of LOGIS due to the $10 million "limit" of bank - qualified bonds, the negative impact to the TIF district (and school district), and the number of tax exempt parcels already in the City. II. REPORT ON HERITAGE CENTER STUDY: JAMES M KLAS MARQUETTE ADVISORS James Klas, from Marquette Advisors, gave a brief presentation on the Heritage Center Study. The Earle Brown Heritage Center has made significant strides since the 1993 study, achieving better than break -even operations for the first time in 1996. Several recommendations in the 1993 Marquette report have been achieved: City payment for facility use, reduction/reallocation of advertising costs, increased sales staff efforts, creation of package prices, increased business meetings, streamlined booking practices, and improved budgeting. v Recommendations in the 1993 report which haven't been achieved are: the sale /lease of inn or live -in manager, improved highway signage, and change of name for the facility. The Inn remains unprofitable. However, it has a positive impact on the complex as a whole. Bond - related legal restrictions limit the options for changing the basic operating structure of the Inn. The preliminary recommendations of Marquette at present are: 1) Continue to pursue ways to improve the Inn/Earle's operating performance under the current structure. 2) Conduct negotiations with the Hilton or other area hotel for joint management of the Inn. 3) Increase available meeting space as office space becomes available. 4) Complete improvements to lower level meeting rooms. 5) Improve communication w7th Brookdale Center. 6) Improve highway signage /consider name change. 3/31/97 i 7) Increase accountability of facility management for meeting budget goals. 8) Create " mission statement" for the Heritage Center. 9) Create a reserve fund for capital improvements. 10) Increase parking as funds become available. A formal report from Marquette will be forthcoming. City Manager McCauley asked for a more quantitative analysis of the Inn in relation to the Heritage Center - -a way to objectively track and demonstrate the worth of the Inn to the Heritage Center. Mr. McCauley stated that a proposed time line for future capital improvements would be prepared by June 1997. There was general Council discussion. III. COUNCIL ITEMS COUNCIL LIAISON REPORTS AT COUNCIL MEETINGS Mayor Kragness suggested that Council members bring reports to the Council meetings from the Commissions when the Commissions have news, projects, etc. Councilmember Hilstrom suggested including short news items from the Commissions in the City newsletter. PRAYER BREAKFAST DATE AND LOCATION Mayor Kragness noted that the Prayer Breakfast would be on April 19, 1997, at the Earle Brown Heritage Center. DISCUSSION OF COMMUNITY CONTRIBUTIONS In relation to recent Council action regarding the Heritage Festival, Mayor Kragness stated that she believed the Council was micro- managing City Manager McCauley when it came to community contributions, and that he should be allowed to use his discretion in giving small contributions upon request within the limits of the budget. Councilmember Hilstrom stated that the Council should vote on these issues and the Heritage Festival issue shouldn't be Mr. McCauley's decision. She further noted that the Heritage Festival did not follow the application process as all other groups did. 3/3 1/97 _;_ Councilmember Carmody agreed with Councilmember Hilstrom that the Heritage Festival should not get special treatment in this case. Councilmember Peppe expressed dismay at the inaccuracy of a recent editorial in the Sun -Post shedding a negative light on the Council. He suggested Discover the Center once again assist the Heritage Festival. The general consensus was to keep the existing policy of Council review of all applications for donations annually in preparation of the budget. POTENTIAL BOND ISSUE: INVOLVING CITIZEN GROUPS /COMMITTEES UPDATE OF POLICE/FIRE DESIGN /OPTIONS/MEETINGS Mayor Kragness stated the importance of involving citizen groups /committees in any potential bond issue for the Police/Fire Departments design and options. Mr. McCauley will be presenting a more interactive presentation in May on the advantages, disadvantages, and costs associated with the various options. He will also be presenting this information to the area civic organizations. Mr. McCauley noted that the Riverwood Neighborhood Association has offered to assist in getting accurate information to the residents. DATE OF NEXT WORK SESSION The date of the next Council work session will be April 23, 1997, 7 p.m. IV. STAFF ITEM UPDATE ON 53RD AVENUE PROJECT City Manager McCauley updated the Council on relocation issues. ADJOURNMENT A motion by Councilmember Carmody and seconded by Councilmember Lasman to adjourn the meeting at 11 :00 p.m. passed unanimously. City Clerk Mayor Recorded and transcribed by: LeAnn Larson 3/3 1 /97 -4-