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HomeMy WebLinkAbout1995 08-28 CCM Regular 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 REGULAR SESSION AUGUST 28, 1995 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Myrna Kragness at 7 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, and Kristen Mann. Also present were Interim City Manager Cam Andre, Director of Public Services Diane Spector, City Attorney Charlie LeFevere, Communications Coordinator Terri Swanson, Planning and Zoning Specialist Ron Warren, and Council Secretary Connie Beckman. Councilmember Barb Kalligher was absent. OPENING CEREMONIES A moment of silence was observed in place of the invocation. COUNCIL REPORTS Councilmember Hilstrom noted an open house to be held on Thursday, August 31, 1995, from 5:30 -8:30 p.m. at the Humboldt Substation. PRESENTATION Mayor Kragness presented a plaque of appreciation to Mr. Ed Badgley, Store Manager for the Brooklyn Center Target, on behalf of the Brooklyn Center Recreation Programs. APPROVAL OF AGENDA AND CONSENT AGENDA A motion by Councilmember Carmody and seconded by Councilmember Mann to approve the August 28, 1995, agenda with the removal of Items 6(a), and (b) from the consent agenda and the addition of Item 9(h) under Council Consideration Items passed unanimously. RESOLUTIONS RESOLUTION NO. 95 -189 Member Kathleen Carmody introduced the following resolution and moved its adoption: 8/28/95 - 1 - RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NO. 1995 -18, NEW ELECTRIC CONTROLS AT WELLS 5, 6, AND 7, APPROVING SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann and passed unanimously. RESOLUTION NO. 95 -190 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES (ORDER NO. DST 08/28/95) The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann and passed unanimously. LICENSES There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the following list of licenses: AMUSEMENT DEVICES - OPERATOR Chuckwagon Grill 1928 57th Ave. N. Rookies Bar & Grill 1501 Freeway Blvd. AMUSEMENT DEVICES - VENDOR Marcus Vending Inc. 1945 Lochaven Place MECHANICAL SYSTEMS LICENSE Advanced Energy Services 3650 Annapolis Lane RENTAL DWELLINGS - INITIAL Welcome Horne Inc. 819 -21 55th Ave. N. Alvin J. Moline, Jr. 7106 France Ave. N. Raymond & Rosanne Marshall 5637 Northport Dr. RENTAL DWELLINGS - RENEWAL George and Ethel McMullen 2401 -03 54th Ave. N. Keith Nordby 5960 Brooklyn Blvd. George Shimshock 5900 Colfax Ave. N. Heinz Pollinger 4207 Lakeside Ave. N. #320 TOBACCO RELATED PRODUCT Value Food Market 6804 Humboldt Ave. N. 8/28/95 -2- TAXICAB Town Taxi 2500 Washington Ave. N. The motion passed unanimously. OPEN FORUM Mayor Kragness noted the Council had received no requests to use the open forum session this evening. PUBLIC HEARING - EARLE BROWN COMMONS The following people were introduced as being available to provide information at the public hearing this evening: Cathy Constantine (bankruptcy), Sue Van Dyke (bond attorney), Bill Jones (counsel for owners), John Persanen (counsel for bond holders), and Clark Whitmore (representing the general partners). Ms. Van Dyke said the Earle Brown Commons' bonds were first issued in 1986 and replacement bonds were issued in 1990. Original issue and current value of the bonds is estimated at $8.8 million. Owners of the Earle Brown Commons are seeking approval from the City to restructure the bonds under tax exempt status. Mayor Kragness opened the public hearing on the Earle Brown Commons at 7:13 p.m. Tim Willson, 6718 Colfax Avenue North, expressed confusion around defaulting on previous bonds and proposed reorganization of the bonds. Ms. Van Dyke explained the current reorganized bonds and indicated that the City would recoup back owed property taxes received in payment installments over the next ten years. Mr. Jones explained that more was owed on the Commons ($6.1 million) as compared to it's appraised value of $4.4 million requiring more dramatic measures to be taken by owners of the Commons; filing through Chapter Eleven. He added current proposed reorganization of the bonds has been designed in an assertive yet conservative enough manner to ensure success of future payments. Additionally, Mr. Jones informed Council that a payment of $186,000 in first half taxes had been made and it appears there will be enough to pay the second half taxes. Mayor Kragness inquired about changes that have been made to guarantee success of the reorganization. Mr. Jones explained the original bonds were financed on a fixed rate whereas the minimum valuation was bought down on the reorganized bonds producing a reduced and variable rate (maximum of two percent increase) to service the bond debt as well as real estate taxes. The owners have had to prove the reorganized plan is feasible and will avoid inability to pay current obligations as well as real estate taxes. 8/28/95 -3 - In response to a question by Councilmember Hilstrom, Mr. Jones indicated there are so many other costs involved, a personal guarantee could not be made to pay the taxes, but the proposed reorganization included every intention to pay them. Councilmember Mann made reference to a statement in the Trustees Objection to Confirmation about "milking the property" and questioned what was meant by this statement. Mr. Whitmore stated he did not recall the statement to which Councilmember Mann was referring. He noted the Trustees had a lot of concerns regarding the plan and the disclosure statement. He further stated they have been clarifying what the rights of the bonds holders would be if the plan of reorganization is confirmed. Mr. Whitmore indicated that current bond holders had voted in favor of the proposed reorganization and that the value of the Commons property not designated to taxes will go towards bond debt retirement versus back tax debt retirement. Councilmember Hilstrom wondered about the repayment of $1.7 million in back taxes. The Interim City Manager said that if the property foreclosured the City would recover taxes at that time. If Council chooses to approve tax exempt status for the Commons, the proposed reorganization would go forward and the City would receive back taxes in payments over the next ten years with ten percent interest annually. Mr. Jones reiterated that under proposed reorganization, the owners would have the ability to make bond and property tax payments. He also stated the owners are not asking the City for money, but for the City's support to obtain bonds under tax exempt status, adding $11,000 per year is planned to be paid to the City in the form of an administrative fee. Councilmember Mann noted the income from the project will pay the debt but yet the project is currently in too much debt. She asked if these new bonds are going to be the sole revenue source to repay these 1990 series bonds. Mr. Jones noted they are using bankruptcy for the restructuring of the bonds so that the amount that is paid out on the bonds is more commensurate with the amount of the income that the project actually has. Councilmember Mann asked what would happen if property taxes increased by more than 3 %. Mr. Jones explained how the 3 % level was reached and noted if property taxes did increase by more than 3 % the cost would have to be absorbed by the series B bonds. He added if there are substantial increases in the property taxes it should also mean there is an inflation factor which would result in an increase in social security payments which in turn would mean the rents could increase as well. Councilmember Mann asked why the City should continually bail out this debtor. Mr. Jones stated it seems this is an economic solution that will allow this project to remain on the tax rolls at a rate where it continues to be almost entirely full and at a rate where the project will continue to pay the real estate taxes. 8/28195 -4- Mr. Jones said the management level has not been cited for nonpayment of back property taxes. Income of the Commons is sufficient, but problems and /or mistakes were made with the original development of the project. He added occupancy rates have been at a good level, rentals are optimal, and operating expenses are in line. Councilmember Hilstrom asked about a lockbox or third party arrangement regarding incoming funds collected on behalf of the Commons. Mr. Jones viewed a lockbox or third party situation more appropriate in a commercial setting. He further explained there is documentation for certification of funds, monthly amounts are being escrowed, and certain safeguards have been built in to ensure the Commons' ability to meet its financial obligations. Mr. Jones informed Council a disclaimer was sent to bond holders stating the City would not be fiscally responsible for the bonds based on approval of the proposed bond reorganization. Mr. Whitmore informed Council that less than 80 percent of the bond holders voted in favor of the reorganization. He also indicated that bond holders want a pledge from the Commons' owners regarding reserve funds, a lien on reserve monies, and cited there is no mechanism in place for control of monies. Mr. Whitmore also cited there are other areas of concern present which include distribution of monies to primaries (limited and /or general partners), that bond holders don't want payments made to primaries until debt retirement is complete, and concerns of courts about proceeding further with the proposed bond reorganization without obtained tax exempt status. Mayor Kragness suggested that in light of need for more information around the City's bond rating, Council should consider tabling any action for two weeks. Mr. Whitmore and Mr. Jones emphasized the urgency with which Council needed to move regarding tax exempt status as the courts were waiting to proceed based on Council's decision. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to close the public hearing on the Earle Brown Commons passed unanimously. The hearing closed at 8:18 p.m. EARLE BROWN COMMONS The City Attorney stated the three options Council had: approve tax exempt status, deny tax exempt status, or table a decision for an additional two weeks. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to table for two weeks approval of a resolution providing for the issuance of housing facilities refunding revenue bonds to provide funds for a project on behalf of Earle Brown Commons Limited Partnership II passed unanimously. COUNCIL CONSIDERATION ITEMS PLANNING COMMISSION APPLICATION NO. 95011 8/28/95 -5 - This application, submitted by Robert L. and Marlene A. Overpeck, and presented to Council by the Planning and Zoning Specialist was a request for preliminary plat approval to subdivide into two lots the parcel of land addressed as 5500 Emerson Avenue North. The Planning Commission had recommended approval of this application at its August 17, 1995, meeting. Councilmember Hilstrom left the meeting at 7:31 p.m. The Planning and Zoning Specialist stated the two lots (originally known as Lots Seven and Eight, Block Two, Littell Addition) were originally joined for tax purposes and contain a large, old two -story frame house and a three -car garage. The size of the combined lot is 195 feet (along Emerson Avenue) by approximately 135.4 feet deep (a total of approximately 26,400 square feet). The proposed legal description of the new lots is Lots One and Two, Block One, Overpeck Addition. The lots would be divided as follows: Lot One (Interior) = 107.40 feet wide by 135.44 feet deep; Lot Two (Corner) = 87.60 feet wide by 135.41 feet wide. Lot Two would be approximately 2.4 feet short in required width. A decision for approval of the proposed planning application would allow the current house on the land to remain with variance issues being addressed accordingly. The Planning and Zoning Specialist also noted condition Number Eight of the Special Use Permit held by Harron Methodist Church for an off -site accessory parking lot. It is possible with the development of the corner lot for a single family home that the shrubs which serve to screen this parking lot might be removed. This would mean that the church would be responsible for screening its parking lot from this residential property. Councilmember Hilstrom returned to the meeting at 8:36 p.m. Councilmember Mann left the meeting at 8:39 p.m. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to approve Planning Commission Application No. 95011 submitted by Robert L. and Marlene A. Overpeck passed unanimously subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the final provisions of Chapter 15 of the City Ordinances. Councilmember Mann was absent from the vote. PLANNING COMMISSION APPLICATION NO. 95012 This application, submitted by Robert L. and Marlene A. Overpeck, and presented to Council by the Planning and Zoning Specialist was a request for a variance from Section 35 -400 of the Zoning Ordinance and Section 15 -106g of the Subdivision Ordinance to create a corner lot in 8/28/95 -6- the R -1 zoning district less than 90' in width. The Planning Commission recommended approval of this application at its August 17, 1995, meeting. Creation of Lot Two, Block One, Overpeck Addition would result in the creation of a corner lot less than 90 feet in width (87.60 feet wide by 135.41 feet wide). The property in question is located at the northeast corner of 55th and Emerson Avenues. Mr. and Mrs. Overpeck state it is their intention to sell this lot or place a single family residence on it. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to approve Planning Commission Application No. 95012 submitted by Robert L. and Marlene A. Overpeck for a variance from Section 35 -400 and Section 15 -106g of the City ordinances to create a corner lot in the R -1 District less than 90 feet on the grounds that the Standards for Variance contained in the zoning and Subdivision Ordinances are met as well as the long - standing City policy for granting minor lot variances passed unanimously. Councilmember Mann was absent from the vote. COOPERATIVE AGREEMENT EXPANDING THE CITY'S INTER -CITY SEWER AGREEMENT WITH BROOKLYN PARK Three properties on Noble Avenue in Brooklyn Park, which are located south of Shingle Creek, have not reviousl been hooked u to city water and sewer. Since it would be cost prohibitive P Y P P y to extend water and sewer south across the creek to serve these three homes, Brooklyn Park proposed to extend this service from Brooklyn Center's mains at Noble Avenue and Woodbine Lane. Brooklyn Park agrees to pay all costs associated with the extension of service; agrees to maintain the leads and services; agrees to pay hookup charges for the three properties; and guarantees that the property owners will pay water and sanitary sewer fees under the same rate structure as other Brooklyn Center utility customers. Brooklyn Park further agrees that even though the agreement stipulates that each City owns the facilities located in their communities, Brooklyn Park will be responsible for the repair and replacement, should it become necessary, of the lead all the way to its connection at Woodbine. The Director of Public Services indicated other properties which have entered into agreements such as ' the ones described have worked out to her knowledge with no problems. She also indicated Brooklyn Park would be responsible for it's own assessments. RESOLUTION NO. 95 -191 Member Debra Hilstrom introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING CONNECTION OF THREE PROPERTIES ON NOBLE AVENUE IN BROOKLYN PARK TO THE BROOKLYN CENTER SANITARY SEWER AND WATER SYSTEMS 8/28/95 -7- The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and passed unanimously. Member Kristen Mann was absent from the vote. Mayor Kragness declared a recess at 8:53 p.m. The meeting reconvened at 9:05 p.m. Councilmember Carmody was absent at reconvening of the meeting. RESOLUTION ACCEPTING PROPOSAL AND AUTHORIZING A CONTRACT FOR PROFESSIONAL SERVICES FOR IMPROVEMENT PROJECT NO. 1995 -05 The Interim City Manager informed Council five City staff members evaluated all proposals individually and met as a group to jointly evaluate the proposals and narrow the field to a final selection. Based on criteria, Short, Elliott, Hendrickson, Inc. (SEH) stood out highest among all of the submittals. Further justification around selection of SEH was provided by the Interim City Manager. Councilmember Carmody returned to the meeting at 9:07 p.m. The Interim City Manager noted funds are available to complete the project. The Director of Public Services noted 69th Avenue is a Municipal State Aid street and would be funded through a combination of funding sources including MSA supported bonds. RESOLUTION NO.95 -192 Member Kristen Mann introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING PROPOSAL AND AUTHORIZING A CONTRACT FOR PROFESSIONAL SERVICES FOR IMPROVEMENT PROJECT NO. 1995 -05, 69TH AVENUE NORTH (SHINGLE CREEK PARKWAY TO DUPONT AVENUE), ROADWAY, BRIDGE, AND UTILITY IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and passed unanimously. MEMORANDUM FROM COUNCILMEMBER CARMODY ON TEAM BUILDING Councilmember Carmody presented a memo addressing the subject of possible team building ideas to improve communications between Council members. She explained that through facilitation of improved communications, Council could be more efficient. Councilmember Mann acknowledged what is ultimately envisioned is agreed by all Council members and felt the process of better communication amongst Council members had already begun the past week. 8/28/95 - 8 - Mayor Kragness indicated Council should have an ongoing project and felt this would be especially appropriate once a new City Manager was hired. MEMORANDUM FROM COUNCILMEMBER HILSTROM ON COMMUNICATIONS Councilmember Hilstrom presented a memo addressing concern around communications between the Council and staff and /or commissions. She requested that Council consider developing guidelines and policies in respect to these communications being disseminated with the best information in a timely manner. A motion by Councilmember Mann and seconded by Councilmember Hilstrom to direct staff to study and report to Council on possible improvements in respect to communications between the Council and staff and /or commissions passed unanimously. ITEMS REMOVED FROM THE CONSENT AGENDA APPROVAL OF MINUTES JULY 31. 1995 - SPECIAL WORK SESSION Councilmember Mann felt excused and unexcused absences should be defined. The Interim City Manager will contact additional resources in order to provide further information to Council. The City Attorney provided insight relating to the City and Home Rule Charter and its implications. He suggested Council would need to define policy pertaining to absences -- excused and unexcused - -prior to declaring any further specific absences of a Council member. He also stated instances of where and when a person could be legally removed from a given position. A motion by Councilmember Mann and seconded by Councilmember Hilstrom to approve the minutes of the July 31, 1995, special work session with the deletion of "unexcused" referring to Councilmember Kalligher under Roll Call passed unanimously. RESOLUTION ACCEPTING PROPOSAL AND AUTHORIZING A CONTRACT FOR PROFESSIONAL SERVICES FOR IMPROVEMENT PROJECT NO. 1995 -04 Lift Station Number One and associated force main are located in Garden City Park near Brooklyn Drive and 62nd Avenue. This lift station was built in 1955 and pumps approximately forty percent of the City's sanitary waste water flow. The lift station and its pumps date from 1955, are no longer replaceable, and are difficult to repair. MSA Consulting Engineers was chosen by a team of six staff members who evaluated all proposals individually and met as a group to jointly evaluate the proposals and narrow the field to two finalists. 8/28/95 -9- Councilmember Mann requested clarification regarding the differences in prices and contracts by the six RFP's submitted. The Director of Public Services indicated it is difficult to project certain types of construction services. Some of those were costs associated with the following: having an inspector on site to ensure quality assurance during construction; time for having an inspector involved in the project. The Director of Public Services also offered that once an RFP is awarded, further contract details are then determined, based on a specific design selection. RESOLUTION NO.95 -193 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING PROPOSAL AND AUTHORIZING A CONTRACT FOR PROFESSIONAL SERVICES FOR IMPROVEMENT PROJECT NO. 1995 -04, REPLACEMENT OF LIFT STATION NO. 1 AND ASSOCIATED FORCE MAIN The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann and passed unanimously. SECRETARIAL RECORDING REQUEST PERTAINING TO AMOUNT OF INFORMATION INCLUDED IN COUNCIL MINUTES Councilmembers requested future Council minutes reflect a more abbreviated version. I The City Attorney noted some information needs to remain more detailed as some circumstances (i.e. property rights) require litigation /court involvement and Council minutes are relied upon when legal decisions are made. He added Council decisions are typically stated in a resolution, however, not having specifics reflecting reason(s) of denial is reflective in minutes which is the official document approved by Council. Upon further discussion, it was determined the City Attorney would advise the Council secretary accordingly about needed detail on a specific agenda item when appropriate. ADJOURNMENT There was a motion by Councilmember Carmody and seconded by Councilmember Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 9:45 p.m. Dep y City Clerk Mayor Recorded and transcribed by: Connie Beckman TimeSaver Off Site Secretarial 8/28/95 - 10-