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HomeMy WebLinkAbout2010 06-28 CCP Regular Session Public Copy AGENDA CITY COUNCIL STUDY SESSION June 28, 2010 6:00 p.m. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 1. City Council Discussion of Agenda Items and Questions 2. Miscellaneous 3. Discussion of Work Session Agenda Items as Time Permits 4. Adjourn CITY COUNCIL MEETING City f Brooklyn Center Y Y June 28, 2010 AGENDA 1. Informal Open Forum with City Council — 6:45 p.m. an opportunity —provides o i for the public to address the Council on items which are not on p pP tY p the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation — 7 p.m. 3. Call to Order Regular Business Meeting —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 4. Roll Call 5. Pledge of Allegiance • 6. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items. a. Approval of Minutes 1. June 14, 2010 — Study Session 2. June 14, 2010 — Regular Session 3. June 14, 2010 — Work Session 4. June 21, 2010 — Joint Work Session with Financial Commission b. Licenses C. Resolution Appointing Additional Election Judges d. Resolution Approving Change Order No. 2, Project No. 2009 -21, 2009 Capital Maintenance Building Plan e. Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased Trees • f. COPS Secure Our Schools Program (SOS) Grant Approval CITY COUNCIL AGENDA -2- June 28, 2010 g. Resolution Ordering the Abatement of Certain Nuisance Conditions Existing of 5337 Lyndale Avenue N, Brooklyn Center, Minnesota 7. Presentations / Proclamations /Recognitions/Donations a. Northwest Hennepin Human Services Council Annual Report Requested Council Action: — Motion to accept annual report. 8. Public Hearings None. 9. Planning Commission Items None. 10. Council Consideration Items a. Resolution Adopting Comprehensive Annual Financial Report of the City of Brooklyn Center for the Calendar Year Ended December 31, 2009 Requested Council Action: — Motion to adopt resolution. • b. Rental Dwelling License Approval for Partial Occupancy at Gateway Commons —2900, 2904, 2908, and 2912 Northway Drive Requested Council Action: — Motion to approve the partial rental dwelling license. C. Consideration of Type IV 6 -Month Provisional Rental License for 4500 Winchester Lane Requested Council Action: — Receive staff report. — Motion to open hearing. — Receive testimony from applicant. — Motion to close hearing. —Take action on rental license application and mitigation plan. d. Consideration of Type IV 6 -Month Provisional Rental License for 4204 Lakebreeze Avenue Requested Council Action: — Receive staff report. — Motion to open hearing. — Receive testimony from applicant. — Motion to close hearing. —Take action on rental license application and mitigation plan. i CITY COUNCIL AGENDA -3- June 28, 2010 e. Consideration of Type IV 6 -Month Provisional Rental License for 5949 Xerxes Avenue North Requested Council Action: — Receive staff report. — Motion to open hearing. — Receive testimony from applicant. — Motion to close hearing. —Take action on rental license application and mitigation plan. f. Consideration of Type IV 6 -Month Provisional Rental License for 6701 Bryant Avenue North Requested Council Action: — Receive staff report. — Motion to open hearing. — Receive testimony from applicant. — Motion to close hearing. —Take action on rental license application and mitigation plan. g. Resolution Approving a Fourth Amendment to a Development Agreement and Certain Related Agreements Attached Thereto as Exhibits (License, Deed, Amended Easement, Lease Amendment, and Subordination Agreements) . Requested Council Action: - Motion to adopted resolution. 11. Council Report 12. Adjournment Agenda Items Tabled or Continued An Ordinance Amending Chapter 4 of the Brooklyn Center City Charter, Sections 4.01 and 4.02 —This item was first read on April 12, 2010; was published in the official newspaper on April 22, 2010; and the Public Hearing was continued at the May 10, 2010, meeting until such time as the Charter Commission makes its recommendation to the City Council. Resolution Establishing Fees for Community Garden Plots in the City of Brooklyn Center —This item was tabled at the May 10, 2010, meeting. EDA MEETING City of Brooklyn Center June 28, 2010 AGENDA 1. Call to Order -The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. June 14, 2010 — Regular Session . 4. Commission Consideration Items a. Resolution Approving a Fourth Amendment to a Development Agreement and Certain Related Agreements Attached Thereto as Exhibits (License, Deed, Amended Easement, Lease Amendment, and Subordination Agreements) Requested Commission Action: — Motion to adopt resolution. 5. Adjournment HRA MEETING City of Brooklyn Center June 28, 2010 AGENDA • 1. Call to Order —The HRA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including HRA (Housing and Redevelopment Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Housing and Redevelopment Authority (HRA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes — Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. December 14, 2009 — Regular Session • 4. Commission Consideration Items a. Resolution Approving and Authorizing Execution of a License Agreement and an Amended and Restated Parking, Access, and Pedestrian Link Easement Agreement Between the Housing and Redevelopment Authority in and for the City of Brooklyn Center and Brooklyn Hotel Partners, LLC Requested Commission Action: — Motion to adopt resolution. 5. Adjournment • AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION June 28, 2010 • Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. Council Chambers City Hall A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS PENDING LIST FOR FUTURE WORK SESSIONS Later /Ongoing 1. Sister City Update — Curt 2. 57th and Logan Update 3. Strategic Outcome Reports 4. Prosecutor Services Contract 5. Community Schools Update 6. 2011 Brooklyn Center Celebration Update 7. Neighborhood Designations • 8. Junk and Inoperable Vehicles Update — Back Yard Parking 9. Minn. Stat. 273.128 4d Rental Properties — Annual Report — January 10. Brookdale Mall Update 11. Joslyn/City Property Remediation Update 12. Department Year End Reports 13. Active Living Program 14. RER — Howe Fertilizer Update 15. Garbage Hauler Report City Council'Agenda Item No. 6a • • MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION JUNE 14, 2010 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:00 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Tim Roche (arrived at 6:05 p.m.), Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Yelich requested discussion on agenda item 6c, Resolution Approving Change Order No. 1, Improvement Project Nos. 2009 -05, 15, and 16, specifically in relation to how the change order came about. Public Works Director /City Engineer Steve Lillehaug explained that within a period of six months, willow tree roots caused a section of the newly paved trail to heave, causing a significant problem. The change order was staff initiated following additional research to determine what can prevent tree roots from heaving bituminous. Councilmember Lasman requested discussion on agenda item 10a, Appointing Election Judges, specifically in relation to why full -time City employees were being appointed. City Manager Curt Boganey confirmed that the appointment includes full -time City employees, and the action by the Council would officially designate them to carry out specific duties during the election. Councilmember Roche arrived at 6:05 p .m. Councilmember Ryan requested discussion on agenda item 8a, an Ordinance Relating to Dangerous Dog Requirements, and determination of the Animal Control Review Panel whether the incident meets the threshold of that definition. Mayor Willson pointed out that the entire ordinance section defines a "potentially dangerous dog" and advised of the membership, role, and authority of the Animal Control Review Panel to make this determination based on the circumstances of the incident. Councilmember Ryan noted the requested amendment clarifies language to conform to State statutes. • 06/14/10 -1- DRAFT Councilmember Yelich requested discussion on agenda item 9a, Planning Commission Application No. 2010 -008, Site and Building Plan Approval for Gateway Commons, specifically • in relation to the size of utility lines coming into and out of this property. Mr. Lillehaug explained that the applicant was asked to provide calculations to verify the size of utilities and once that information is submitted and reviewed, changes may be made, if warranted. Director of Business and Development Eitel advised that the 8 -inch water line is for fire protection and accommodated the original pool. Councilmember Lasman requested the following correction to the Study Session minutes of May 24, 2010: Page 2, paragraph 5, last line: Some Council Members discussed the request and indicated a preference that this type of class remain in the educational realm rather than with the Police Department or that a better referral system be used. The Council indicated no objection to a cursory examination as long as it does not absorb too many City resources, if t he i dent at4ends and makes eenlme at Open Fens " Councilmember Lasman g requested the following correction to the Work Session minutes of q May 24, 2010: Page 2 ara ra h 6 first line: The Council asked questions of Mr. Roder. It was noted that Mr. Roder had made a conscious decision to not pay property taxes and utilities and use income from this property to pay a other bills. Mr. Roder stated this correct but he knew..." • It was the majority consensus of the City Council to accept the correction the May 24, 2010, Study Session and Work Session minutes. MISCELLANEOUS Councilmember Lasman presented the request of the Centennial Celebration Committee to rename "Central Park" to "Centennial Park," which would memorialize the occasion of the City's centennial and remove confusion with Central Park in Brooklyn Park. She cited past precedent for changing park names. The Council discussed the request and a majority consensus was reached to expedite the request and refer the matter to the Park and Recreation Commission for review and recommendation at its June 15, 2010, meeting. The Council also requested staff to schedule a discussion at an information on costs associated with such a name change. u upcoming Work Session and provide info p g P Councilmember Lasman complimented staff on the improved demarcation of the road project to alert drivers where to make turning movement and provide added safety. • 06/14/10 _2_ DRAFT Councilmember Lasman asked staff to inspect the large tree limb that is extending over the • sidewalk at Halifax and 71 Avenues North. Mr. Boganey reviewed the process for removing a tree, if it posed an eminent safety threat, and stated a Code Enforcement Officer will inspect the property. Councilmember Roche presented the request of the Housing Commission Chair to amend the April 26, 2010, Work Session minutes to provide additional clarity and assure it is not misinterpreted that the Housing Commission Chair wanted to solicit funds. Mr. Boganey read the referenced section of the April 26, 2010, Work Session minutes and indicated there is no attribution to the Housing Commission Chair, just the Commission. Councilmember Roche said he would report the information to the Housing Commission Chair. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS ZONING CONSIDERATION RELATING TO FARMERS MARKETS Mr. Eitel presented the consideration of the Planning Commission regarding amending the zoning ordinance as it relates to farmers markets. The Council discussed the duration of farmers markets and supported added language to specify "during daylight hours," which would prevent the use of artificial illumination. • Mr. Boganey stated the matter before the Council is whether it supports creating a formal structure relating to farmers markets. Hours of operation is one of many details that can be addressed if the Council supports developing such an ordinance. The Council discussed each of the four policy issues put forward by the Planning Commission and reached the following consensus: 1. Does the City Council want the Planning Commission to consider changes to the administrative land use provisions that would allow farmers markets to operate on an annual 30 -week permit similar to out -of -door nursery and garden center sales and displays? The Council supported this policy question. 2. Does the City Council want the Planning Commission to consider changes to the zoning ordinance that would allow a farmers market to be located on a vacant commercial lot? The Council discussed the location of commercially zoned vacant properties and it was agreed that permission would have to be obtained from the property owner. It was acknowledged that there is an indication of success with farmers markets when operated in conjunction with existing retail versus operating from a vacant property. • 06/14/10 -3- DRAFT Mr. Eitel advised that farmers markets prefer sites with high visibility, high traffic volumes, and ease of access. It is also beneficial if the site has another draw, such as a CUB Store, or • destination business. Mr. Boganey stated the consideration is for commercially zoned lots, which restricts farmers markets to a specific zone. In addition, language can be drafted to include size parameters. He suggested staff identify all potential vacant commercial lot locations that meet the determined criteria on a map so the Council can determine whether some locations are not desirable. The Council supported changes to the zoning ordinance that would allow a farmers market to be located on a vacant commercial lot, which are less likely to impact residential lots. ADJOURN WORK SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Councilmember Lasman moved and Councilmember Roche seconded to close the Work Session at 6:45 p.m. Motion passed unanimously. RECONVENE WORK SESSION Councilmember Roche moved and Councilmember Ryan seconded to reconvene the Study Session at 6:47 p.m. Motion passed unanimously. • ZONING CONSIDERATION RELATING TO FARMER'S MARKETS - CONTINUED Discussion continued related to the policy issues put forward by the Planning Commission as follows: 3. Does the City Council want the Planning Commission to consider changes to the zoning ordinance that would allow farmers markets to locate within zoning districts other than commercial; such as institutional uses as government centers, regional library, schools, religious institutions, and/or parks? Mr. Eitel reviewed potential sites, other than commercial, and described how several communities have tied the operation of farmers markets into other activities, such as park programs, and tend to be more of a farmers fair, than a farmers market that sells produce. He explained that in most cases, a fee is charged that covers out -of- pocket costs but is not enough to cover the City's full cost. The Council discussed the pros and cons of a municipally -run and regulated farmers market versus allowing private enterprise to make application for farmers market sites. The Council acknowledged that the City does not currently have enough staff to organize and operate a farmers market and staff resources were better used to address redevelopment. . 06/14/10 4- DRAFT The Council requested the Planning Commission draft definition criteria for "farmers market." • 4. Does the Ci ty Council find the list of products which may be offered for sale at a farmers market acceptable? It was noted that seven categories were listed along with an indicator that "nothing may be sold which is prohibited under local, state, or federal law or rules." The Council discussed the need to assure that all food products sold meet health standards for consumption. Mr. Eitel clarified that the Planning Commission recommends the City's administrative use permit address only the location, parking area, and to assure a safe environment. Thus, the City would not be responsible or liable for products sold. He explained that the applicant would be responsible to assure the market is efficiently and effectively operated, and that all products sold meet local, State, and/or Federal laws or rules. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded to close the Study Session at 7:00 p.m. Motion passed unanimously. • 06/14/10 -5- DRAFT 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 JUNE 14, 2010 CITY HALL — COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Tim Willson at 6:45 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum. No one wished to address the City Council. • Councilmember Lasman moved and Councilmember Ryan seconded to close the Informal Open Forum at 6:46 p.m. Motion passed unanimously. 2. INVOCATION Councilmember Yelich requested a moment of silence and personal reflection as the Invocation. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Tim Willson at 7:01 P .m. 4. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Tim Roche, Dan Ryan, and Mark II I ane Public Works Dire ctor /Ci Yelich. Also present were City Manager Curt Bog y, Director/City Engineer g Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. • 06/14/10 -1- DRAFT 5. PLEDGE OF ALLEGIANCE • The Pledge of Allegiance was recited. g 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Lasman moved and Councilmember Yelich seconded to approve the Agenda and Consent Agenda, with amendments to the Study Session and Work Session minutes of May 24, 2010, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. May 24, 2010 — Study Session 2. May 24, 2010 — Regular Session 3. May 24, 2010 — Work Session 4. June 7, 2010 — Joint Work Session with Auditor/Financial Commission 6b. LICENSES AMUSEMENT DEVICES Dandy Amusements International, Inc. 6420 Camden Avenue N. GARBAGE HAULER Allied Waste Services of North America LLC P.O. Box 39 Circle Pines Aspen Waste Systems, Inc. 2951 Weeks Avenue N, Minneapolis n Darling International, Inc. 9000382 d Avenue, Blue Earth Randy's Environmental Services P.O. Box 169, Delano Walters Recycling and Refuse P.O. Box 67, Circle Pines Walz Brothers Sanitation P.O. Box 627, Maple Grove MECHNICAL Bob's Heating & Air 1123 W. Linden Street, Stillwater Bonfe's Plumbing, Heating & Air 505 Randolph Avenue, St. Paul Brooklynaire 8205 Groveland Road, Mounds View Dakota Mechanical of MN 575 Minnehaha Avenue W., St. Paul Ductworks Heating & Air 6108 Olson Mem. Hwy, Golden Valley Edina Heating and Cooling 15753 Cedar Ridge Road, Eden Prairie Flare Heating and Air 9303 Plymouth Avenue, Golden Valley Fore Mechanical 3102103` Lane NE, Blaine Groffs Heating and Air 3255 131 West, Rosemount Liberty Comfort Systems 627 E. River Road, Anoka Marsh Heating & A/C 6248 Lakeland Ave. N, Brooklyn Park Otsego Heating & Air 21 1 St Street NW, Osseo Ray Welter Air Conditioning 4637 Chicago Avenue, Minneapolis 06/14/10 -2- DRAFT Superior Heating & Air 3731 Thurston Avenue NW, Anoka Trane 775 Vandalia Street, St. Paul • RENTAL — STANDARDS PRIOR TO MARCH 6, 2010 INITIAL 6807 Humboldt Avenue N. #C301 Raymond Charest RENEWAL 4408 69 Avenue N. Eugene & Diane Wright 5256 Twin Lake Blvd. E. Brian Somkhan 907 57 Avenue N. David LaFavor 421363 d Avenue N. Bryan Friendshuh 5812 Camden Avenue N. Roberto Miguel Rodriquez 5420 Girard Avenue N. Scot Sorum 4207 Lakeside Avenue #226 Beach Condominium Association RENTAL — CURRENT STANDARDS INITIAL — (TYPE II — two-year license) 3223 49 Avenue N. Wade Klick 5424 70 Circle John Huntley 6931 Toledo Avenue N. Jason Schubert RENEWAL (TYPE I — three-year license) 5235 Drew Avenue N. Jay Nelson Battenberg • 5300 -04 Vincent Avenue N. Steven & Debra Elhardt 5630 Irving Avenue N. Mary Gilleshammer RENEWAL — (TYPE II — two-year license) 5925 Washburn Avenue N. Cheng Lor RENEWAL (TYPE III —one-year license) 4214 Lakeside Avenue James Shoultz SIGN HANGER L & D Sign 6045 Lake Elmo Avenue, Stillwater 6c. RESOLUTION NO. 2010 -88 APPROVING CHANGE ORDER NO. 1, IMPROVEMENT PROJECT NOS. 2009-05,15 AND 16, CONTRACT 2009 - B, SHINGLE CREEK PARKWAY & 69 AVENUE STREET IMPROVEMENTS AND 2009 CITY TRAIL IMPROVEMENTS Motion passed unanimously. 7. PRESENTATIONS / PROCLAMATIONS /RECOGNITIONS/DONATIONS 7a. RESOLUTION NO. 2010 -89 EXPRESSING RECOGNITION AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF OFFICER DWAYNE HOLMSTROM 06/14/10 -3- DRAFT Councilmember Yelich moved and Councilmember Lasman seconded to approve RESOLUTION NO. 2010-89 Expressing Recognition and Appreciation for the Dedicated Public Service of Officer Dwayne Holmstrom. Mayor Willson read a resolution of appreciation recognizing Officer Dwayne Holmstrom for over 20 years of service to the City. City Manager Curt Boganey stated staff's appreciation for Dwayne Holmstrom's outstanding performance on behalf of Brooklyn Center as a member of the Police Department. Councilmember Roche added his congratulations and wished Mr. Holmstrom, a high school friend, an enjoyable retirement. Motion passed unanimously. 8. PUBLIC HEARING 8a. ORDINANCE NO. 2010 -10 RELATING TO DANGEROUS DOG REQUIREMENTS; AMENDING CITY CODE SECTION 1 -250 TO 1 -300 Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed ordinance. He noted the recommended changes are necessitated by State law and address minor • housekeeping items to assure the City's ordinance is consistent with Minnesota Statutes. Councilmember Lasman moved and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. Councilmember Roche moved and Councilmember Yelich seconded to close the Public Hearing. Motion passed unanimously. Councilmember Lasman moved and Councilmember Roche seconded to adopt ORDINANCE NO. 2010 -10 Relating to Dangerous Dog Requirements; Amending City Code Section 1 -250 to 1 -300. The Council reviewed the ordinance amendments and it was noted that should a nuisance with barking dogs occur over the weekend, residents should call 911 with the understanding that all emergency calls are prioritized to first address significant public safety issues. It was acknowledged that the proposed ordinance amendments are in order to add clarification and strengthen enforcement, which benefits all residents to assure public safety. Motion passed unanimously. 06/14/10 -4- DRAFT 9. PLANNING COMMISSION ITEMS 9a. PLANNING COMMISSION APPLICATION NO. 2010 -008 SUBMITTED BY GARY BRUMMER/GB HOMES. REQUEST FOR SITE AND BUILDING PLAN APPROVAL FOR CONSTRUCTION OF A 6,000 SQ. FT. COMMUNITY ROOM WITH INDOOR POOL, PARTY ROOM, EXERCISE ROOM, AND OFFICES FOR GATEWAY COMMONS Director of Business and Development Gary Eitel provided an overview of Planning Commission Application No. 2010 -008, a request for site and building plan approval for construction of a 6,000 sq. ft. community room with indoor pool, parry room, exercise room, and offices for Gateway Commons. He advised the Planning Commission recommended approval of the application at its May 27, 2010, meeting subject to conditions detailed in the staff report. Mr. Eitel answered questions of the City Council regarding the repositioned gates to create a secure environment. Councilmember Lasman moved and Councilmember Yelich seconded to approve Planning Commission Application No. 2010 -008 subject to the following conditions of the Planning Commission: 1. The building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage, utility and erosion control plans are subject to review and approval by the • City Engineer prior to the issuance of permits. 3. A site performance agreement and supporting financial guarantee in an amount to be determined based on cost estimates shall be submitted prior to the issuance of permits to assure the completion of all site improvements. 4. Any outside trash disposal facilities and shall be appropriately screened from view. 5. The buildings are to be equipped with an automatic fire extinguishing systems to meet NFPA standards and connected to a central monitoring device in accordance with Chapter 5 of the city ordinances. 6. Plan approval is exclusive of all signery which is subject to Chapter 34 of the city ordinances. 7. B -612 curb and gutter shall be provided around all parking and driving areas. 8. The applicant shall submit an as built survey of the property, improvements and utility service lines prior to release of the performance guarantee. Motion carried unanimously. 10. COUNCIL CONSIDERATION ITEMS 10a. RESOLUTION NO. 2010-90 APPOINTING ELECTION JUDGES Councilmember Lasman moved and Councilmember Yelich seconded to approve RESOLUTION NO. 2010-90 Appointing Election Judges. • Motion passed unanimously. 06/14/10 -5- DRAFT 10b. AMEND 2010 CITY COUNCIL MEETING SCHEDULE • Mr. Boganey introduced the item and recommended approval of the schedule revision. g Y pp Councilmember Lasman moved and Councilmember Roche seconded to amend the 2010 City Council meeting schedule to change the dates of the canvass of election returns as follows: cancel August 11, 2010, meeting; set August 13, 2010, meeting and set time of meeting at 5:00 p.m.; and, cancel November 3, 2010, meeting. The canvass of returns will be added to the regularly scheduled November 8, 2010, meeting. Motion passed unanimously. 10c. RESOLUTION NO. 2010 -91 AUTHORIZING TRANSFER OF FUND BALANCE FOR CAPITAL PURPOSES Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. He advised that after the transfer is made, the general fund would remain within the reserve policy parameter of having a balance at the close of each fiscal year of 50 -52 percent of next year's General Fund operating budget. Councilmember Ryan moved and Councilmember Roche seconded to approve RESOLUTION NO. 2010-91 Authorizing Transfer of Fund Balance for Capital Purposes. • Motion passed unanimously. 10d. RESOLUTION NO. 2010 -92 DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES AT CERTAIN PROPERTIES IN BROOKLYN CENTER, MINNESOTA Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. It was noted that failure to remove the trees or to appeal this declaration can result in the City contracting to have the diseased trees removed and placing the cost as a lien against the property for collection with the property taxes. Councilmember Lasman moved and Councilmember Roche seconded to approve RESOLUTION NO. 2010 -92 Declaring a Public Nuisance and Ordering the Removal of Diseased Trees at Certain Properties in Brooklyn Center, Minnesota. Motion passed unanimously. 11. COUNCIL REPORT Councilmember Yelich reported on his attendance at two neighborhood meetings held on May 26, 2010, West Palmer Lake Park, and June 9, 2010, West Fire Station, that were well attended. He encourage residents to take advantage of these opportunities to meet their neighbors and learn . what is going on in the community. 06/14/10 -6- DRAFT Councilmember Lasman reported on her attendance at the following: • May 26, 2010, West Palmer Lake Park meeting. • May 31, 2010, Memorial Day Ceremony at Mound Cemetery. • June 5, 2010, Crime Prevention Fund Raiser at CUB. • June 7, 2010, Budget Work Session to receive the Auditor's report. • June 7, 2010, Centennial Celebration Committee meeting to plan the City's upcoming 100 year birthday party. She encouraged residents to keep abreast of the celebration and to attend as many activities as possible. • June 9, 2010, West Fire Station neighborhood meeting. Councilmember Lasman noted that the Police Department report indicated a generalized reduction of crime in the area. Councilmember Roche stated he had visited Mound Cemetery over Memorial Weekend, which contains a lot of City history and is interesting to visit. He announced the June 15, 2010, Housing Commission meeting, its efforts to find an alternative for community gardens, and its work with Odyssey Academy. Councilmember Roche thanked the Star Tribune for its June 5, 2010, article and interview of Officer Reynolds indicating that crime prevention has paid off in Brooklyn Center. He announced the next neighborhood gathering will be at Lions Park on June 29, 2010, and encouraged residents to attend to learn what is going on in the community. Councilmember Roche also announced June 24 -26, 2010, celebration of Earle Brown Days, an annual event that is free to attend. He stated there will be fireworks on Saturday night and encouraged residents to enjoy Oak City or Mango Tango, a new restaurant, as well as the parade and Dudley Tournament. Councilmember Ryan reported on his attendance at the following: • May 26, 2010, West Palmer Lake Park neighborhood meetings, which have been a great success in getting information out to residents. • June 7, 2010 Joint Council Work Session with the Financial Commission to review the auditor's report, which was most favorable to the City. Mayor Willson reported on his attendance at the following: • May 26, 2010, West Palmer Lake Park neighborhood meeting. • June 1, 2010, Brooklyns Youth meeting. • June 7, 2010, Joint meeting with the Financial Commission. • June 10, 2010, Visit Minneapolis North Executive Board meeting. Mayor Willson stated that on June 16, 2010, he will attend the Visit Minneapolis North quarterly board meeting. 12. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded adjournment of the City Council meeting t 7:30 g .m. p Motion passed unanimously. • 06/14/10 -7- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION JUNE 14, 2010 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 8:24 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers /Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. RECONVENE WORK SESSION Councilmember Ryan moved and Councilmember Roche seconded to reconvene the Work • Session at 8:24 p.m. Motion passed unanimously. ZONING CONSIDERATION RELATING TO FARMER'S MARKETS - CONTINUED Discussion continued related to the policy issues put forward by the Planning Commission as follows: 4. Does the City Council find the list of products which may be offered for sale at a farmers market acceptable? Seven categories were listed and an indicator that "nothing may be sold which is prohibited under local, state, or federal law or rules." The Council addressed the likelihood of people selling live animals and whether it would be considered acceptable by residents. Mr. Eitel stated the topic of animal sales was not addressed by the Planning Commission. Mr. Boganey stated that language can be added to prohibit the sale of live animals at a farmers market. Mr. Eitel reviewed that the intent is to consider the changes to the administrative permit process to allow the operation of a farmers market to sell fresh and organic produce, not to create a process to operate a flea market or fair. 06/14/10 -1- DRAFT i The Council noted item 3 under question 4 relates to the sale of "meat, poultry, or fish" and questioned the need for portable generators to provide refrigeration. Mr. Eitel explained it is • assumed the items for sale would not need refrigeration and the market would be more like a produce stand. Mr. Boganey stated staff is not intending to make the City the regulator for any of these activities. Rather, the zoning ordinance amendment would provide an opportunity but the City would not become the regulator of that opportunity. Mr. Eitel explained that the farmers market would not include the sale of consumable foods, which would require a different type of permit. The Council indicated support of this policy question and the proposed zoning ordinance amendment as long as the language clearly defines all regulations, that applicant is responsible for the operation of the market, and to assure unsold produce and litter is not left on the site. Mr. Eitel advised that the Planning Commission indicated interest in reviewing the site plan for 30 -week permit applications and making a recommendation to the City Council. He indicated that this ordinance amendment will be presented to the Council by the end of July, following the Planning Commission public hearing. RECORDING OF WORK SESSIONS — COUNCILMEMBER YELICH Councilmember Yelich presented the inquiry he received to record and broadcast Work Sessions and suggested doing so may improve communications with residents and transparency in decision making. He referenced staff's cost estimate of $2,000 per year and stated the intent is to • provide better communication and inform citizens about what items are coming up on future agendas. The Council noted that Work Session items are oftentimes discussed during the Study Session. Mr. Boganey advised that recording the Study Session may alter the cost estimate. In addition, the cable representative indicated including the Study Session, which starts at 6 p.m., may create some issues with staffing. During discussion, each Council Member stated their position regarding this request. Councilmember Lasman noted this is not the first time such a request has been made. She pointed out that once Study Session and miscellaneous items are completed, Work Session items are discussed prior to the regular Council meeting, which makes effective use of the Councilmember's time and is considerate of those who have full -time jobs. It is her preference to not record Work Sessions so the meeting format can remain informal with less regard for decorum and the Members can freely offer comments, ask questions, brainstorm, and discuss what comes to mind. In addition, recording the Study Sessions and Work Sessions would impact the City's budget. Councilmember Roche stated he does not support recording Work Sessions, which he finds to be the most rewarding and educational because that is when he can ask questions of staff and formulate his position. He noted he is newly elected and as such, casually formatted Work . 06/14/10 -2- DRAFT Sessions allow him to ask questions, make mistakes, and feel part of the team. He questioned the • number of people making this inquiry and noted the Work Sessions are open to the public. Councilmember Roche stated his focus is that the Council has a town to run and he wants broadcast meetings to reinforce the Council's sense of organization and ability to deliver, not necessarily the debate on how the Council got to that point. Councilmember Ryan expressed concern that comments made on Work Session items during an unrecorded Study Session may be being taken out of context. He noted that comments, questions, and answers made during Work Session debates may not be entirely factual and corrected once researched. However, this would not be apparent to the viewer of a Work Session broadcast. He stated he does not support the broadcast of Work Sessions because he would be reluctant to raise some questions if he was not entirely sure he was citing the exact language or State Statute. He stated he does support open communication and transparency and the public is always welcome to attend. In addition, broadcasting Work Sessions would increase costs and the budget is already challenged. Mayor Willson presented a mock agenda that would start the regular Council meeting at 6:30 p.m. and reorder discussion of all Work Session items to follow the regular Council meeting, noting this would assure flow of the broadcast. He indicated there is a misperception that the Council makes its decisions during Work Sessions and only takes the final vote at the regular meeting, so broadcasting Work Sessions would address that perception. Mr. Boganey advised there is no legal requirement to broadcast meetings, but it was the policy • decision of the Council to do so. He noted that decisions made at the regular Council meeting are based on vetted information; however, that may not be the case during Work Session discussions. Councilmember Yelich questioned why Members would be less candid if the meeting is broadcast since all meetings are open to the public. He was unsure that was a reasonable argument against broadcasting Work Sessions. The Council discussed that 6:00 p.m. Study Sessions were initiated to provide newly elected Members with additional information and the ability to ask questions off camera. The meeting procedure has now evolved to hold a Study Session at 6:00 p.m. to discuss items on that night's agenda and miscellaneous items and a Work Session following the Council meeting. The Council and staff discussed when the Work Session agenda was completed and timing to make it available to the public. Mr. Boganey stated staff could prepare the Work Session agenda by the Wednesday before the meeting date and broadcast it on Government Access Channel 16 so it is easily and readily available to residents. It was pointed out that this procedure provides advanced notification and transparency without added expense. To alert residents of this advanced posting, it was suggested that Mayor Willson make an announcement at the close of the regular meetings and that an article be included in the City's newsletter. Mayor Willson polled the Council. Councilmembers Lasman, Roche, and Ryan indicated they . did not support a change in policy to broadcast Work Session meetings. 06/14/10 -3- DRAFT Councilmember Yelich indicated that while residents may still want Work Sessions broadcast, he believes this is a step in the right direction to provide advanced notice and transparency. Work Session agendas on u f the City Council was to direct staff to post upcoming The consens s o ty p g Government Access Channel 16. ADJOURNMENT Councilmember /Commissioner Ryan moved and Councilmember /Commissioner Lasman seconded adjournment of the City Council/Economic Development Authority Work Session at 9:30 p.m. Motion passed unanimously. • 06/14/10 -4- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION JUNE 21, 2010 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Joint Work Session with the Financial Commission and the session was called to order by Mayor Tim Willson at 6:31 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present: City Manager Curt Boganey, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Maria Rosenbaum. Others present were Financial Commissioners Rex Newman. Commissioners Dan Schueller arrived at 6:37 p.m. and Susan Shogren Smith arrived at 6:40 p.m. • BUDGET PREPARATION OVERVIEW City Manager Curt Boganey discussed that this evening is a kick off to help with the development of the budget preparation and that information will be provided regarding the taxes related to all the State changes. He informed that he would like to begin prioritizing and focus on the highest priorities and outlined a calendar of future budget meetings. If there were no changes to the calendar being presented it was recommended that the budget planning process would continue as planned. There were no changes requested at this time. REVENUE OPTIONS AND TARGETS Fiscal and Support Services Dan Jordet outlined a PowerPoint Presentation regarding the Revenue and Option Targets for the 2011 Budget. Included with this material were the Legislative actions, the Local Government Aid and Market Value Home Stead Credit options, 2011 Property Tax Levy Alternatives as of June 18, 2010, Estimated Market Values by Group, Tax Capacities by Group, Residential Taxes Payable comparisons, and a Revenue Sources Model for the General Fund. OVERALL STRATEGIC OBJECTIVES City Manager Boganey distributed a Strategic Plan Worksheet and a Strategic Plan Desired Outcome Ranking Worksheet and asked that the City Council and Financial Commissioners rank their highest priorities from one to ten, with one being the highest and ten being the lowest. 06/21/10 -1- DRAFT Once these worksheets have been completed, he would like to review the results and determine which Strategic Goals are the highest priorities. The City Council and Financial Commissioners . were given time to complete their rankings and in conclusion the following Strategic Goals were considered to have high priorities: Strategic Goal 1 Desired Outcome 1. The threat and fear of real or perceived crime among citizens and others will be greatly reduced. Strategic Goal 2 Desired Outcome 2. "Opportunity Site" redevelopment will commence. Desired Outcome 3. EDA owned properties redevelopment will proceed expeditiously. Strategic Goal 3 Desired Outcome 2. Owners and occupants of housing in residential neighborhoods will comply with City codes and regulations which will be adequate to assure a safe well maintained and attractive community. Desired Outcome 4. Problems associated with foreclosures will be dramatically reduced or eliminated. Strategic Goal 4 Desired Outcome 2. Youth will be adequately served by recreation and educational programs and activities. • Strategic Goal 5 Desired Outcome 1. City Government buildings, major equipment and other physical assets of the City will be maintained and improved. Desired Outcome 2. Neighborhood streets and utilities will be maintained and improved. NEXT STEPS City Manager Boganey discussed that staff will move forward with these eight priorities being focused on for budget planning purposes. ADJOURNMENT Councilmember Roche moved and Councilmember Lasman seconded to adjourn the Work Session at 8:29 p.m. Motion passed unanimously. i 06/21/10 -2- DRAFT City'Council Agenda Item No. 6b • • COUNCIL ITEM MEMORANDUM DATE: June 22, 2010 • Curt Bo ane City Manager TO. g y, y g FROM: Maria Rosenbaum, Deputy City Clerk SUBJECT: Licenses for City Council Approval Recommendation: It is recommended that the City :Council consider approval of the following licenses at its June 28, 2010, meeting. Background: The following businesses /persons have applied for City licenses as noted. Each business /person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Applicants for rental dwelling licenses are in compliance with Chapter 12 of the City Code of Ordinances, unless comments are noted below the property address on the attached rental report. AMUSEMENT DEVICES Theisen Vending Company 2335 Nevada Avenue N, Golden Valley GARBAGE HAULER Budget Waste Systems, Inc. 3516 East Lake Street, Minneapolis Jate Mites, Inc. 8289 Mississippi Blvd, Coon Rapids Sanimax USA Inc. 505 Hardman Avenue, South St. Paul " T & L Sanitation Service P.O. Box 49695, Blaine Waste Management — Blaine 10050 Naples Street NE, Blaine MECHANICAL BFS Heating & Cooling 4732 Beard Avenue S, Minneapolis RENTAL See attached reports. SIGN HANGER Install This Awning & Sign 4835 Lyndale Avenue N, Minneapolis Budget Issues: There are no budget issues to consider. Mission: Ensuring an attractive, clean, safe conuruiniy that enhances the quality of life and preserves the public trust Ingo M O N; Rental Standards Prior to March 6, 2010 1701 69 t Ave N Earle Brown Farm Apts 4 Bldgs 38 Passed with Weather Deferral 120 units Renewal Earle Brown Farm Apts (.32 per unit) OK OK 5931 Halifax PI ISingle Family lRenewal lierilou Wiedmeyer 0 OK OK Current Rental Standards °a 6201 Lilac Dr N 1 Bldg Crossings at Brookwood Estates 73 Units Renewal Lang Nelson Associates 20 I 1 1 OK OK 6125 Lilac Dr N 1 Bldg Crossings at Brookwod Manor 65 Units Renewal Lang Nelson Associates 11 I 1 I OK OK 824 69th Ave N Two Family (1) Renewal Madeleine Roche 0 1 0 1 OK OK 3819 61st Ave N Single Family Initial Fred Hanus 0 II 0 II OK OK 5413 70th Cir N Single Family Initial William Hall 8 III 0 III OK OK 3413 62nd Ave N Single Family Renewal Lee Mixson 3 II 0 II OK OK 5200 63rd Ave N Single Family Renewal Evaristus Ejimadu 0 1 0 1 OK OK 6137 Lee Ave N Single Family Renewal Ben Cleve Dossman IV 0 1 0 1 OK OK 7025 Logan Ave N Single Family Renewal Justin McGinty 4 II 0 II OK OK 7030 Newton Ave N Single Family Renewal Malcolm Vinger II 2 II 0 11 OK OK 4937 Zenith Ave N Single Family lRenewal IJames Maciazka 0 1 0 1 OK OK * CFS = Calls For Service ** Final License Type Type 1 = 3 year Type II = 2 year Type III =1 year Type IV = 6 mos City Council Agenda Item No. 6c • COUNCIL ITEM MEMORANDUM • DATE: June 21, 2010 TO: Curt Boganey, City Manager FROM: Sharon Knutson City Clerk SUBJECT: Resolution Appointing Additional Election Judges Recommendation: It is recommended that the City p Council consider adoption of a Resolution Appointing Additional Election Judges. Background: Minnesota State Statutes, Section 204B.21, subd. 2, requires election judges be appointed by the governing body at least 25 days before the election at which the election judges will serve, except that the City Council may appoint additional election judges within the 25 days before the election if the City Council determines that additional election judges will be required. A resolution is included that lists additional individuals who have applied to serve as an election judge for the 2010 elections. • Budget Issues: There are no budget issues to consider. • Mission: Ensuring an attractive, clean, ,safe community that enhances the quality of life and preserves the public, trust Member introduced the following resolution and moved its adoption: • RESOLUTION NO. I RESOLUTION APPOINTING ADDITIONAL ELECTION JUDGES WHEREAS, a State Primary Election will be held August 10, 2010, and a State General Election will be held November 2, 2010; and WHEREAS, Minn. Stat. 204B.21, subd. 2, requires that persons serving as election judges be appointed by the City Council at least 25 days before the election at which the election judges will serve, except that the City Council may appoint additional election judges within the 25 days before the election if the City Council determines that additional election judges will be required. BE IT RESOLVED by the City Council of the City of Brooklyn Center that the individuals named below and on file in the office of the City Clerk be appointed to perform the duties of election judge and/or be appointed as the Brooklyn Center Absentee Ballot Board election judges. BE IT FURTHER RESOLVED that the City Clerk is with this, authorized to make any substitutions or additions as deemed necessary. . Rachel Corley Eileen Cushing Genevieve Jam June 28, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 6d • • COUNCIL ITEM MEMORANDUM • DATE: June 23, 2010 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works /City Engineer SUBJECT: Resolution Approving Change Order No. 2, Project No. 2009 -21, 2009 Capital Maintenance Building Plan Recommendation: It is recommended that the City Council consider approval of the attached Resolution Approving Change Order No.l in the amount of $1,025.75 for Improvement Project No. 2009 -21, Capital Maintenance Building Plan. Background: On October 12, 2009, the City Council awarded a Contract to Excel Companies, Inc. Change Order No. 1 was approved on February 22, 2010. The following represents additional work performed by Excel Companies, Inc., and is included in Change Order No. 2 that is recommended to amend the Contract to complete the project. 1. Lift Station No. 2 — Revise and resize the ventilation louvers. Additional Cost: $1,025.75 • TOTAL Change Order 2: $1,025.75 There is no revision to the completion date warranted by this change. Budget Issues: The attached resolution authorizes Change Order No. 2 for Project No. 2009 -21, 2009 Capital Maintenance Building Plan in the amount of $1,025.75. The original contract amount was $202,900. Change Order No. 1 (previously approved, $3,464.20) and Change Order No. 2 increases the contract amount by 2.2 percent to $207,389.95. Council Goals: Strategic: 5. We will continue to maintain and upgrade City infrastructure improvements • Mission: Ensturia,, an attractive, clean, sale coaunttnitV that enhances the qualit ofh/e and prescrves thepuhlic trust Member introduced the following resolution and moved its • adoption: RESOLUTION NO. RESOLUTION APPROVING CHANGE ORDER NO. 2, PROJECT NO. 2009- 21, 2009 CAPITAL BUILDING. MAINTENANCE BUILDING PLAN WHEREAS, pursuant to a written Contract signed with the City of Brooklyn Center, Minnesota, Excel Companies, Inc., of Anoka, Minnesota was instructed to complete additional work as itemized on Change Order No. 2 for Project 2009 -21; and WHEREAS, said additional work was not included in the original Contract, but was deemed necessary to properly complete the project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that Change Order No. 2 in the amount of $1,025.75 for Contract 09 -L is hereby approved. The revised contract amount is as follows: Original Contract Amount $ 202,900.00 Change Order No. 1 $ 3,464.20 Change Order No. 2 $ 1,025.75 Revised Contract Amount $ 207,389.95 • June 28, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member And upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • City Council Agenda Item No. 6e • COUNCIL ITEM MEMORANDUM DATE: June 28, 2010 TO: Curt Bo ane City Manager g Y� tY g t FROM: Vickie SchleuningyXlsistant City Manager/Director of Building & Community Standards SUBJECT: Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased Trees Recommendation: It is recommended that the City Council declare a public nuisance and order the removal of diseased trees for certain properties as listed in the resolution. Background: The attached resolution represents the official Council action required to expedite removal of diseased trees that were recently marked by the city tree inspector. The City of Brooklyn Center • has maintained a policy of removing and properly disposing of diseased trees in order to prevent tree diseases from spreading throughout the community. The removal of diseased trees is defined in City Ordinance Chapter 20 -301to 20 -306. Although the city has historically focused on Dutch Elm disease, other transmissible diseases and infestations are addressed as well. Property owners are given the opportunity to remove the diseased tree on their own or enter an agreement to allow the city to remove the diseased tree. Where an agreement with the property owner is executed, a minimal administrative charge of $50 is applied to the costs associated with the tree removal. After a diseased tree is declared a public nuisance by the City Council, another Compliance Notice will be provided to the property owner allowing additional time, at least five days, for voluntary correction, again providing an option for an agreement with the City. If the property owner does not correct the violation or enter an agreement, the city will remove the diseased tree. An administrative abatement service charge will be charged based on the cost of the abatement, with a minimum charge of $150. Budget Issues: The City's share of the cost of removal for diseased trees within the public right -of -way and on City property is included in the 2010 budget under the Public Works Forestry operating budget. The cost of removal for diseased trees located on private property is the responsibility of the • respective property owner, and if unpaid, is specially assessed to the property. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Council Goals: Strategic: We will respond to increased public awareness and interest in environmental sustainability and green community issues Mission: Ensuring an attractive, clean, safe community that enhances the quality of life andpreserves thepublic trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES AT CERTAIN PROPERTIES IN BROOKLYN CENTER, MINNESOTA WHEREAS, Brooklyn Center City Code Section 20 -301 declares any diseased tree a public nuisance and provides for abatement by the City if not corrected by the property owner; and WHEREAS, removal of diseased trees and abatement of the public nuisances is necessary to prevent the spread of tree diseases and to protect the environmental quality and desirability of neighborhoods; and WHEREAS, a Notice to Abate Nuisance and a Diseased Tree Removal Agreement has been issued to the owners of certain properties in the City of Brooklyn Center giving the owners twenty (20) days to remove diseased trees on the owners' property; and WHEREAS, the City can expedite the removal of these diseased trees by declaring them a public nuisance. i NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The diseased trees at the following addresses are hereby declared to be a public I nuisance. Property Owner Property Address Tree Type and No. JAMD Properties, LLC 902 53` Ave N Elm —No. 12 Kevin D Frenning 5713 James Ave N Elm —No. 14 Gina Whittaker 5511 Emerson Ave N Elm —No. 15 Howard J Pieri 5945 Admiral Lane Elm — No. 16 Michael Gonzales 5825 Pearson Dr Elm - No. 17 John B Lachance 6912 Halifax Ave N Elm — No. 20 2. After twenty (20) days from the date of the initial notice, the property owner(s) will receive a second written notice providing five (5) business days in which to contest the determination of the City Council by requesting, in writing, a hearing. Said request shall be filed with the City Clerk. • RESOLUTION NO. 3. After five (5) days, if the property owner fails to request a hearing, the tree(s) shall be removed by the City. The cost of abatement shall be recorded and become the personal responsibility of the owner of record. If unpaid, the costs shall be specially assessed to the property in accordance with city codes and Minnesota Statutes Chapter 429. June 28, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • • City Council Agenda Item No. 6f • COUNCIL ITEM MEMORANDUM . DATE: June 23, 2010 TO: Curt Boganey, City Manager FROM: Kevin Benner, Interim Chief of Police SUBJECT: COPS Secure Our Schools Program (SOS) Grant Approval Recommendation: It is recommended that the City Council consider approval/adoption of the application for the Secure Our Schools grant for 2011/2012. Background: The Secure Our Schools grant is being offered by the US Department of Justice and is offering up to $500,000 of security updates for school safety. The grant focuses on community policing, and requires that the school work collaboratively with local law enforcement to be considered for funding. The grant requires local law enforcement to be the applicant and be responsible for the program implementation. If awarded the grant, a local 50% cash match is required towards the total project cost. The Brooklyn Center High School has agreed to pay all required matching funds, and the city would have no financial considerations. The grant application proposes to upgrade the existing camera system at Brooklyn Center high School and install a new camera system at Earle Brown Elementary. Also included in the grant application is the funding of a panic alarm in the school front offices. The grant application is requesting $100,000 for the upgrades, and the Independent School District #286 will pay the $100,000 cash match. Budget Issues: There are no budget issues to consider. Council Goals: Strategic: 1. We will ensure a safe and secure community Ongoing: 1. We will provide streamlined, cost effective, quality services with limited resources i Alr3.sion. En. urhig aarr rrrttaattrt e. clew 1 , s € t.rrtnrraarrnrrt- rhal enhances s the quality taf'Ilfi= Land preser +yes drepubfic trust City Council Agenda Item No. 6g • • COUNCIL ITEM MEMORANDUM • DATE: June 28, 2010 TO: Curt Boganey, City Manager FROM: Vickie Schleuning,Assistant City Manager/Director of Building and Community Standards Department SUBJECT: Resolution Authorizing An Abatement of Public Nuisance at 5337 Lyndale Avenue North, Brooklyn Center, MN Recommendation: It is recommended that the City Council consider approval of a resolution authorizing the abatement of certain public nuisance conditions existing at 5337 Lyndale Avenue North, Brooklyn Center, Minnesota. Background: Brooklyn Center Ordinance Section 7 -105 prescribes a process for the City to abate an accumulation of refuse from a property if a resolution is approved by council. The property at 5337 Lyndale Ave N has been determined to be in violation of Chapter 7. The City has received complaints regarding the property at 5337 Lyndale Ave N. The City has attempted to gain voluntary compliance for the junk and debris stored outside; however, the property remains in violation. The property owner was provided an initial Compliance Notice on May 17, 2010, and notified on subsequent occasions of city code requirements. However, the property owner has not brought the property into compliance. The property is currently in foreclosure with the redemption period scheduled to expire on September 11, 2010. In this situation a City - facilitated abatement is considered the most effective option to achieve compliance and eliminate the nuisance to the neighborhood. Other code violations exist on the property, including an enforcement action in process regarding a junk/inoperable vehicle. Budget Issues: The costs of abatements, including administrative service charges, are specially assessed back to the property if unpaid. Council Goals: Strategic: 1. We will ensure a safe and secure community 3. We will stabilize and improve residential neighborhoods Attachments: Summary of activities related to this violation Photos Copy of abatement order . Resolution M ission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust Attachment I: • Summary of activities related to this violation Date Action Notes �71 05/17/2010 Complaint A complaint was received regarding garbage and debris at the pro 05/17/2010 Inspection The inspector inspected the property and the junk and debris violations were present at the pro 05/17/2010 1 s ' Notice A notice was issued requesting the violations be corrected. 05/24/2010 Inspection The inspection noted the violations remained at the property. The inspector attempted to speak to the occupants, however there was no answer. 05/24/2010 2" Notice A second notice was issued requesting that the violations be corrected. 06/02/2010 Inspection The inspection noted the violations remained at the property. The inspector attempted to speak to the occupants, however there was no answer. 06/02/2010 Door A notice was left at the door requesting that the Notice violations be corrected. 06/09/2010 Verbal Inspector spoke Spanish to the occupants and Warning gave a warning regarding the violations. 06/14/2010 Abatement The inspector mailed and posted abatement order. order 06/21/2010 Inspection Inspection noted that the property remained in violation. • .oar.'°"" ._fix. � � ....ea.. �' -mas. ,. „° �.,:.'. .tea ,. . „� "'- �. � �.y x 3�` Yy,^p�u a .i - .. r t 1 Or ok :. # ` a zAPzi A� °i ��a NN 9 , Y J e Attachment III: Abatement Order �` • City Of Building and Community S XBrooklynCenter x wyv.crtvp b,2gklyncerr erw 6M I Shinile Cieek Parkway Brooklyn Center. Minnesota 55430 -21W Phone 763.569.3334 TTY.' oicc 711 Fax 763.569.3360 * oLS400* 611 V2 010 ABATEME NOTICE .lose Contreras Vazuec Request No, 10.015400 5337 L.yndale Ave l Brooklyn Center MN 55430 RE: Property located at 5337 Lyndale Ave N, Brooklyn Center, Minnesota PID: 01- I M21 -43 -0417 Dear S r .Madam: An inspcctiori of your property an May 17, 2010 has revealed the following violation(s) of the Brooklyn Center City Code! which must be corrected as l'ctllows: ACCUMULATION OF REFUSE: City Code 5iection 7. 105 Health, Garbage, and Sanitation). Any accumulation of refuse not stored in containers or any accumulation of refuse on any premise for more than one week is a public nuisance. • • Remove bags of leaves and debris in back yard and by garage. Section 19- 103.4 Accumulation of rubbislVbrushfdebri:s- Please remove all rubbish, brush and/or debris from property and dispose of appropriately. A fol low -up inspection will be conducted on or shortly after Monday, tune. 21, 2010, ' if the violations are not corrected, thi matter will be heard before thr City Council at the regularly schedule! Council meeting on Monday, June 29, 2010 commencing at 7 :00 p.>tt, to consider abatement by the City. The City Council mectingwill tie held at City Hall, 6301 Shingle Creels Parkway, Brooklyn Center. (]ether legal action in the form of fines, abatement, and/or formal court action may also he taken. Abat!tM If lime refuse; junk, and other debris is not removed and properly disposed of by the aforementioned dater the city wil l complete the necessary work to bring the property into compliance with city codes. The costs, including administrative charges, will be the responsibility of the property owner, and if unpaid, will be special] assessed to the property in accordance with M.S, 429 et. seq. Your cooperation in this matter is greatly appreciated. It should be a mutual goal to maintain a clean, sate, and attractive environment. If you have questions regarding this Notice, please call me at (763) 569-3315. Sincerely, Scott Sadusky • Code Enforcement Inspector ok1 ter Building and Comrnunit}° Standards B ro WWW.ertr-a aadyjTCenter..�ir • 6301 SA is Crack PWIWOY, Brookl Yn Ceater, Mirm to 55434 -2149 Phote,763.569.3 330 TTYNoice 711 Fax 763,569.3360 " 6114010 ABATEMENT NOTICE 5°337 Lyndale Ave N Brooklyn Center MN 55431} itequest No. l4-Q I �4t}Q RE: Property located at 5337 Lynda.le Ave X, Brooklym Center, Minnesota PID: 01-118-21- Dear Sir /Madam: An inspection of your pfoperty on May 17,20 10 has revealed the following violation(s) of the Brooklyn Center City Code: which must be corrected as follows + ACCIJMULA.T ON OF REFUSE: (City Code Section 7.105 Health, Garbage, and Sanitation). Any accumulation of refuse not stated in containers or any accumulation of refuse on any premise for more than one week is a public nuisance. « Remarve bags of leaves and debris in back y a rd and by garage • Section 14 -1513 A Accumulation of rubbishfbrushldebris - Please remove all rubbish, brunt an6or debt is from property and dispose of appropriately. A follow -up inspection will be conducted on or shortly afttr Monday, .tune 23, 2010. ff the violations are not corrected, thi matter will be heard before the City Council at the regularly scheduled Council meeting on Monday, 3unc 29, 2010 commencing at 7:00 p,m, to consider abatement by the City, The City Council mcedng will be held at City Nall, 6301 Shingle Creek Parkway, Brooklyn Center. Qdw legal action in the form of fides, abatement, andlvt formal court action may also be taken Abatement by C'i K_Qf Q gQkb•n :eater. If the refuse, junk and other debris is not t'enloved and properly disposed of by the al'urcmentioned date, the city will complete the necessary work to brief, the property into compliance with city cues. The costs, including administrative charges, will be the responsibility ofthe property owner, and if unpaid, will be special[ assessed to the property in accordance with M.S. 429 et. seq. Your cooperation in this matter is greatly appreciated.. It should be a mutual goal to maintain a dean, safe, and attractive environment. If you have questions regarding this Notice, please call meat (763) 569.3315• Sincerely, 10 . Scott Saduslcy Code Enforccment Inspector adoption; Member introduced the following resolution and moved its • RESOLUTION NO. RESOLUTION ORDERING THE ABATEMENT OF CERTAIN NUISANCE CONDITIONS EXISTING AT 5337 LYNDALE AVENUE N, BROOKLYN CENTER, MINNESOTA WHEREAS, Brooklyn Center City Code Section 7 -105 declares any accumulation of refuse more than one (1) week as a public nuisance and provides for abatement by the City if not corrected by the property owner; and WHEREAS, correction of hazardous conditions and the abatement of public nuisances is necessary protect the health safe and welfare of the public b elimination of �'Y p � safety p Y dangerous conditions, attractive nuisances and for the elimination of harborage for vermin, rats and other animals that may pose a danger to the public safety and health thereby providing for more sanitary and safe conditions and to further protect the integrity and desirability of neighborhoods; and WHEREAS, the Building & Community Standards Department has inspected the following property on the dates listed: Pro a Inspection Dates • 5337 Lyndale Ave N 06/21/2010 Brooklyn Center, MN 06/14/2010 06/09/2010 06/02/2010 05/24/2010 WHEREAS, nuisance conditions were observed on this property at the time of inspection, and a Compliance Notice was given to the properly owner, and occupant if different than the owner, in erson or mail; and 1' Y WHEREAS, a written report has been filed detailing the findings as a result of the inspections and these findings have been conveyed to the City Council; and WHEREAS, after notice given in accordance with Brooklyn Center City Code, Section 7 -105, the owner of the Property has been given an opportunity to be heard; and WHEREAS, the City Council finds and declares the property listed above to be in violation of Ordinance 7 -105 and constitute a public nuisance because of the accumulation of junk and debris such as, leaf bags, garbage, furniture, carpeting, etc. RESOLUTION NO. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that: 1. The City Manager is hereby authorized to abate the Nuisance Conditions on the property listed above using city personnel and equipment or by private contract. 2. The cost of abatement shall be recorded and become the personal responsibility of the owner of record. If unpaid, the costs shall be specially assessed to the property in accordance with Section 7 -105 and Minnesota Statutes Chapter 429. June 28, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member • and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 7a June 28, 2010 Dear Brooklyn Center Mayor, Council Members and City Manager, My name is Sharon Kephart; I am the Brooklyn Center representative for the Northwest Hennepin Human Services Council Advisory Commission. I'm sorry I'm not able to be present at the meeting tonight. My presence is required at a funeral of an extended family member. I have enjoyed learning about the work the r o mmi cci O n is doing and as an Advisr%ry Commission member ber I l ook for,elnrr4 Y /JVI IIIIJJI 1 111 1 VVU1 W to working on programs and ways to benefit our city, the residents and the communities surrounding us. This committee meets monthly to discuss issues facing human service needs in our community and it's great to see our shared resources providing services to residence in Brooklyn Center and Northwest Hennepin County. It's been my pleasure to serve on this committee. Thank you for the opportunity to service my community. Sincerely, ja�� 44;�� Sharon Kephart, 513065 th Ave. N. Brooklyn Center, MN. 55429 763 -533 -1110 III The 0 -AT BROOKWOOD To Brooklyn Center City Council Members, Good evening, my name is Jesse Gully and I work for the Crossings at Brookwood here in Brooklyn Center. I am sorry I am not able to attend tonight but I did want to share a couple of items with you. My company works directly with about 600 of seniors in this community and about 2500 seniors in other communities. I have been on Northwest Hennepin Human Services Council's Senior Leadership Committee since January when the committee opened membership to senior providers. This new structure has provided me with an opportunity to hear issues affecting seniors across the region which helps me serve my residents better. As a member of this committee it is also my responsibility to provide expertise on senior related topics for members to bring back to the community. This year we assisted with the Senior Spring Forum. The event was a huge success and had approximately 150 seniors participating. 1 look forward to the continued success of this committee and it has been a pleasure serving. Sincerely, Jesse Gully The Crossings at Brookwood 763- 561 -7405 bwmanager @lanel.com r ` NORTHWEST HENNEPIN HUMAN SERVICES .COUNCIL im Research, Planning, and Coordination of Human Services • 2009 NWHHSC Contributions to the City Of Brooklyn Center MISSION: Research, Planning, and Coordination of Human Services Networks for the Northwest Hennepin member cities in the Joint Powers Agreement: Brooklyn Center, Brooklyn Park, Champlin, Corcoran, Crystal, Golden Valley, Hanover, Maple Grove, New Hope, Osseo, and Rogers. NWHHSC creates connections between government, non - profit, education, faith and business sectors and residents, as well as across systems and cultures, to: • Develop local research data and give the big picture regionally • Connect people to resources to focus on prevention and early intervention • Improve delivery of and access to services regionally • Increase community engagement and outreach to improve appropriate referrals • Build community and organizational capacity to maximize resources • Help develop cost- effective solutions to avoid duplication of services • Pilot new ways to deliver culturally affirming community-based services • Provide inter - agency professional development on key issues and trends • Engage in cross - sector dialogue and joint planning to develop collaborative strategies • Increase regional knowledge of services through searchable website at www.nwhhsc.orq NWHHSC Total Funding for 2009: $1,936,820 2009 Funding NWHHSC received from Hennepin County Contracts: $824,750 2009 Funding NWHHSC received from State Contracts: $677,262 2009 Funding NWHHSC received from Federal Contracts: $224,907 2009 Funding NWHHSC received from Member Municipalities: $108,058 2009 Funding NWHHSC received from Grants and Contributions: $101,843 • NWHHSC received funding from Brooklyn Center: $12,182 2009 Emergency Services used by Brooklyn Center residents: $12,177+ 163 people rec'd gas cards + $1,800 in free Car Care Saturday assistance for residents TOTAL Assistance Brooklyn Center received through all programs was $167,354= $13.73 for every $1 RESEARCH PLANNING COORDINATION • Regional Community • Citizen Advisory Commission reviewed • Emergency Services Program Assessment research reports and helped develop • Domestic Violence Prevention • Global Neighbors Report: Community Assessment scope and Network Diverse Populations in NW questions • Car Care Saturday Hennepin • Senior Leadership Committee . Communities Empowering • Immigration population data • Emergency Services Network — Youth Capacity- Building • Emergency assistance Emergency Resource Folders for Program services eligibility service residents affected by foreclosure • Joint Community Police area maps for area providers • Tobacco -Free Youth surveyed stores Partnership • Document need for mental and planned peer leadership project • Regional Senior Forum health services at food activities • NW Hennepin Early Childhood shelves to write a grant • Early Childhood /Parent Education with Network • Community Profile new immigrants . Working Toward Success • NW Guide to Human Services • Community resource brochures in resources for area businesses and updated on searchable multiple languages . NW Faith Collaborative website • New Neighbors Network with West • Tobacco -Free Youth • Collect and disseminate Africans . Network 4 Youth Northwest secondary data • Healthy Together Northwest focus on . SE Asians Living Chemically • MN Data Center Affiliate for diverse opportunities for education, Free local public access to Census employment and entrepreneurship . Widowed Persons Services Bureau data • Capacity - building tools for nonprofit NW newsletter organizations Northwest Hennepin Human Services Council Research, Planning and Coordination Brooklyn Center Community Profile 2010 The information in this report is the most recent data available and comes from a variety of sources, including the U.S. Census 2000, the Minnesota Department of Employment and Economic Development, Hennepin County's Human Services and Public Health Department and the Metropolitan Council. A complete list of sources is included at the end of the publication. Northwest Hennepin Cities' Population 1 *Brooklyn Park 75,156 434 Plymouth 71,536 *Ma le Grove 59,932 r. Champlin 23,983 6 *Crystal 22,167 7 *New Hoe 20,860 8 *Golden Valley 20,326 9 Robbinsdale 13,598 10 Rogers 7,200 11 *Corcoran 5,774 12 Dayton 4,973 13 Hassan 2,672 14 *Osseo 2,465 15 *Hanover (Henn. Co.) 559 *Member City of Northwest Hennepin Human Services Council t ___ Table of Contents Population 2 Natality 3 Children and Youth 4 Seniors 5 Race, Language and Ethnicity 6 Poverty 8 Employment 9 Housing 10 Sources 11 Brooklyn Center ° Brooklyn Park , Corcoran , Crystal ° Golden Valley ° Hanover f Maple Grove « New Hope a Osseo Northwest Hennepin Human Services Council ' Research, Planning and Coordination Brooklyn Center 2010 Profile Vin, 3 \ , x '" '•' " ' gvw M' 'r -. r. Brooklyn Center Population Estimates 2000 -2008 31,000 s ` The most recent estimated population of 30,000' Brooklyn Center (2008) was 30,330, a 4% 29,000 _ increase since 2000. Brooklyn Center is the fourth largest city in the Northwest 28,000 Hennepin region. p , 27,000 ' 26,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Metropolitan Council Brooklyn Center i Population Forecasts 2010 -2030 31,000 The population in Brooklyn Center is projected to increase to 29,500 by 2010, or about 6% since 2000. The population is projected to continue to increase to 30,500 by 2020 and then to decrease to 29,500 by 2030. 29,(}00 2010 2020 2030 Source: Metropolitan Council Brooklyn Center Household Estimates 2000 -2008 11,500; 11,400 There were an estimated 11,250 households in Brooklyn Center in 2008, a 2% decrease since 11,300 2000. 11,200 11,100 11,000' 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Metropolitan Council Brooklyn Center ° Brooklyn Park ® Corcoran - Crystal GnS7en Valley Hanover Maple Grove New Hope Osseo SIMI Northwest Hennepin Human Services Council Research, Planning and Coordination Brooklyn Center 2010 Profile U. Total Births in Brooklyn Center 2000 -2008 There was a total of 601 births in Brooklyn 700 : Center in 2008, a decrease of 8% from <` � 2007. There was an average of 529 births soo per year in Brooklyn Center between 2000 500' and 2008. 400 300 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Hennepin County Human Services and Public Health Department Teenage Births in Brooklyn Center 2000 -2008 i In 2008, 77 Brooklyn Center teenagers gave birth. This marked a 10% decrease in births to teenage mothers from 2007. 75 An average of 64 teenagers gave birth each year in Brooklyn Center between 50 k 2000 and 2008. 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Hennepin County Human Services and Public Health Department Total Number of Births in Brooklyn Center Compared with Births by Teenage Mothers 750 L �a Since 2000, teenage mothers in Brooklyn b a , Center have made up between 11 -13% of 600 ~ the total number of births. 450 Teenage Births 300. — + — T'ota; birth 150 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Hennepin County Human Services and Public Health Department 3 Brooklyn Center « Brooklyn Park ® Corcoran ° Crystal t Golden Valley m Hanover g Maple Grove New Hope ^ Osseo Northwest Hennepin Human Services Council ' Research, Planning and Coordination Brooklyn Center 2010 Profile Brooklyn Center Youth (19 years and younger) as a Percentage of all Residents 2006 -2008` Under 5 years 2,356 8% 5 to 9 years The American Community Survey 2.251 estimates that, in 2008, there were 8,885 Residents 20 s °'° children and youth age 19 and under in Years and 10 to 14 years Brooklyn Center; this is 30% of the Older 2.135 population. 20,796 7 % 70% 15 to 19 years 2,113 7% Source: US Census Bureau, American Community Survey 2006 -2008 Hennepin County Youth (19 years and younger) as a Percentage of all Residents The American Community Survey 2006 - 2008# Under 5 years 80.0o6 estimates that there are 295,799 youth 7% (age 19 and under) in Hennepin County. 5 to 9 years Residents 20 68, 71-1 Brooklyn Center had slightly more youth as Years and 6 % a percentage of the total population than Older 10 to 14 years Hennepin County during the same 836,798 73,127 sampling time frame. 74% 6°1° \ 15 to 19 years 'The American Community Survey uses a three sampling methodology in determining a one -year 73,957 population estimate. 7% Source: U.S. Census Bureau, American Community Survey, 2006 -2008 Type of Childcare Provider 2009 2010 Change As of June 2010 Brooklyn Center had 6 Childcare Centers 7 6 -1 Childcare centers and 47 family childcare facilities, a decrease from 2009. Family Childcare Homes 53 47 -6 Source: MN Department of Human Services, data retrieved June 2009 and June 2010. 4 Brooklyn Center = Brooklyn Park t Corcoran Crystal Golden Valley v Hanover Maple Grove Y New Hope = Osseo � Services Council .101 Northwest Hennepin Human Research, Planning and Coordination Brooklyn Center 2O1OProfile Percentage of Senior Citizens in Brooklyn Center � The /\nlerkcon Community Survey est that there are 3.776 res Residents 64 Residents 65 age O5 years and older in Brooklyn Center; Years and Years and this im13% of the total population. Older Younger 3,776 25,875 13% � Source: U.S. Census Bureau, American Communi Survey, 200e-2008 Percentage of Senior Citizens in Hennepin County The American Community 3unxay estimates that there are 123.467 resident Residents 65 age 05 years and older in Hennepin and Over County; this is11%of the total population. Rest of 123,467 Population 11% *The American Community Survey uses athree samp ling methodol m determining oone 89% 1 1 population estimate. Source: U.S. Census Bureau, American Community Survey, xoo6-zona � Brooklyn Center ` Brooklyn Park ~ Corcoran ~ Crystal ` Golden Valley Hanover ^ Maple Grove ^ New Hope ^Osseo Northwest Hennepin Human Services Council ' Research, Planning and Coordination Brooklyn Center 2010 Profile {/.�ity.' 3 ■/g�� ` - Y ■■ /�. h r�:a 'f Ly V Brooklyn Center Population by Race According to the American Community Zoos -loos* Black o n Surv estimates, Brooklyn Center _ A, rican Y y American, residents identify as: 7,624.26°/0 16,231 White, Amrerican 7,624 Black or African American, Indian and 3,252 Asian or Pacific Islander, White, 16,231, a Alaska Native, 1,073 two or more races, 54% ; N 492,2% 979 some other race, and \Asian, 3,252, i 492 American Indian 11 °ra *The American Community Survey uses a three -year Tw o or more Some other sampling methodology in determining a one -year races, 1,073, race, 979. 3% population estimate. 4% Source: U.S. Census Bureau, American Community Survey, 2006 -2008 According to the 2009 -2010 school records from Brooklyn Center School Enrollment by Race and the Minnesota Department of Education, schools Ethnicity 2009 -2010 located in Brooklyn Center (not limited to Brooklyn Center School District) had 37 % White American (1,464) Black students, 29% (1,116) White 11116 x,70 n students, 16% (618) Hispanic students, 16% 29% 2% (617) Asian Pack Islander students and 2% Asian Pacifi (70) American Indian students. Islander 617 Schools located in Brooklyn Center: 16 Brooklyn Center Secondary Black Hispanic Earle Brown Elementary 1,464 fi Evergreen Park Elementary 37% 16 % Garden City Elementary Insight School of Minnesota Joy in Leaming Academy Northport Elementary Source: Minnesota Department of Education Willow Lane Early Childhood Special Education 6 Brooklyn Center , Brooklyn Park - Corcoran Crystal Goiden Valley Hanover u Maple Grove ° New Hope - Osseo I Northwest Hennepin Human Services Council Research, Planning and Coordination Brooklyn Center 2010 Profile `a a� 090 a.tiry €m ,... E i�a +' i,.., r L a 4 �a s " N ' SIR, �: -.... , - ... , v. , og � -^C. s , •13 ,. € . y a ..... �. ' �.U���......u....i_ ,.,;�s Efi�.�x� , b a „ .,.?r� . *�.�ry . Brooklyn Center is home to many people from diverse backgrounds, including immigrants and refugees. It is difficult to accurately estimate non - English speaking populations, in part because many members of these communities were born in the U.S. and are native English speakers. While data on primary home languages cannot provide an exact count of the number of immigrants in a city, it does provide a tool to estimate the size of immigrant communities and help locate these communities geographically. Total English and Non - English Primary Home Brooklyn Center is served by the Anoka - Language Speakers in School Districts Serving Hennepin, Brooklyn Center, Osseo, and Brooklyn center 2008-2009 Robbinsdale School Districts. 16% of students in these school districts speak a language other than English at home. English Non- English 62,585 11,838 58 different primary home languages were 84% 16% reported in the Anoka - Hennepin School District, 25 in the Brooklyn Center School District, 57 in the Osseo School District and 46 languages in the Robbinsdale School District. Source: Minnesota Department of Education Top Five Non - English Primary Home Languages Spoken in School Districts Serving Brooklyn Center 2008 -2009 Russian 612 Vietnamese Of the top five non - English primary home Hmong 7°i° 782 languages spoken by students in the Anoka- 2,954 s% Hennepin, Brooklyn Center, Osseo, and 34 Krio Robbinsdale School Districts, Spanish is the .._> 510 most prevalent (36 %). The Hmong language 6% was the second most prevalent language, Spanish . English 3,008 Creolized comprising 34 %• 36°i° 700 8% Non- English Language Spoken at Home in School Districts Source: Minnesota Department of Education Serving Brooklyn Center The school districts that serve Brooklyn School Year 2008 -2009 Other Non_F.nglisr, Center have similar non - English languages 100% j o English Creolized spoken at home, with a few exceptions. 90% O Krio Anoka- Hennepin School District has a 80% o Viietname._ large population of Krio speaking students 70 °i° o Russ and a small percentage of students t Hmong 60% speaking English Creolized, unlike the other 50% 0 Spanish school districts that have a large percentage 40% of students reporting English Creolized as 30% their primary home language spoken. 20% 10% Spanish students (3,008) and Hmong 0% students (2,954) are the most prevalent Anoka- Brooklyn Osseo Robbinsdale Total non - English primary home language in Hennepin Center Public Public school districts serving Brooklyn Center. Public School School School School District District District District Source: Minnesota Department of Education 7 Brooklyn Center ° Brooklyn Park �, Corcoran , Crystal 9 Golden Valley ^ Hanover * Maple Grove r New Hope > Osseo ,' Northwest Hennepin Human Services Council ' Research, Planning and Coordination Brooklyn Center 2010 Profile ro .: tYr q� v qua 3 •Ss. rS " I13 is Percentage of Brooklyn Center Residents Whose According to the American Community Income was Below the Poverty Line in the Past 12 Survey (2006- 2008) 3 ,884 residents of Months Brooklyn Center lived below the poverty level; this is 13% of the estimated Above Below Poverty population. Poverty Line Line 25,767 3 8g4 The federal poverty level for a family of four was $20,000 in 87% 13% 2006 and $21,200 in 2008. Total population is an estimate based on American Community Survey data. I J Source: US Census Bureau, American Community Survey, 2006 -2008 A student is eligible for the Free and Reduced Price Meals Program in public school based on his /her family's income. A household income must be below 130% of the federal poverty level ($28,665) for a family of four, to qualify for free meals and below 185% ($40,793) of poverty for reduced meals. Rates are from July 1, 2009 through June 30, 2010. Among the four public elementary schools in Brooklyn Center, Northport (77.6 %) and Garden City (76.7 %) had the highest number of students eligible for free or reduced price meals. Evergreen Park had the lowest percentage (61 %) of students eligible. All four elementary schools experienced an increase in the percentage of students eligible for the Free and Reduced Price Meals Program from 2008 -09 to the 2009 -2010 school year. Percent of Students Eligible for Free or Reduced Meals in Public Elementary Schools in Brooklyn Center School Years 2007 -2008, 2008 -2009, and 2009 -2010 70.6% Garden City Elementay 69 7% Northport Elementary Earle Brown Elementary ' ... . 4'lr 2007 -2008 Evergreen Park Elementary ■ 2008 -2009 m 2009-2010 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Source: Minnesota Department of Education Brooklyn Center + Brooklyn Park Corcoran Crystal Golden Valley - Hanover - Maple Grove fr New Hope , Osseo Northwest Hennepin Human Services Council ' Research, Planning and Coordination Brooklyn Center 2010 Profile .•a r ! ;ESA ry,' - rh.; ry y';3 a }� ' y,,�'``f3; :, n " - a� v F z%�j z:, u ; , -. i".� Employment statistics from the Minnesota Department of Employment and Economic Development are based on results from monthly surveys of households around the state conducted by the Bureau of Labor Statistics and the Census Bureau. Average employment is the average number of city residents who are employed for pay or who did 15 or more hours unpaid work for a family business during the survey week. Brooklyn Center Average Annual Labor Force 2000 -2010* According to the Minnesota Department of 16,000 Employment and Economic Development, ��� x'' average annual employment (not 15,500 seasonally adjusted) for 2009 in Brooklyn : . 15 ,000 �j. Center was 13,603. This is a decrease of '�F � 14,500 3.17% from 2008. y fns 14,000 �3 *2010 average only through April 13,500 r 13,000 I N 12,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Minnesota Department of Employment and Economic Average Unemployment for Brooklyn Center Development Residents The unemployment rate of a city is the percentage 2000 - 2009; of the city's labor force who do not have a jab, 12.0% have actively looked for work in the prior four weeks and are currently available for work. It does 10.0 °i° not include people who wanted and were available for work and had looked for a job sometime in the $ °% 5 past year, but not in the past four weeks. The 6.0 °i° �. . average annual unemployment rate for Brooklyn Center (not seasonally adjusted) was 9.9% in 4.0 °i° x: m 2009, an increase of 48.4% since 2008. 2.0 ° /° *2010 average only through April s 2000 2001 2002 2003 2004 2005 2006 2007 2008 20092010* Average Unemployment Rate for Hennepin County and Brooklyn Center Source: Minnesota Department of Employment and Economic 2000 - 2010* Development 12.0% Brooklyn Center's 2009 average annual unemployment ° j rate (9.9 %) (not seasonally adjusted), was higher than that 10.0% � of Hennepin County's (7.4 %) rate as a whole. 8.0% 6.0% ', Brooklyn Center and Hennepin County's average 4.o °i° unemployment rates have increased since 2006. 2.0 °i° a *2010 average only through April j 0.0 °i° F.... ry0 0� � ry0 X0 0 0 ry0 0� 4 X0 0 6 ry0 0� X000 ryoog 4 ~ � Source: Minnesota Department of Employment and Economic Development 9 Brooklyn Center ^ Brooklyn Park ® Corcoran .. Crystal , golden Valley ° Hanover Maple Grove % New Hope ° Osseo Northwest Hennepin Human Services Counc W IN Research, Planning and Coordination Brooklyn Center 2010 Profile IN [ 11 " ', W4 I � K 'S" Like other cities in Hennepin County, Brooklyn Center has been impacted by the sub-ohnne mortgage crisis. Over the past twenty-seven months (January 2008 - March 2010), the foreclosure trend in Brooklyn Center is slightly downward. In 2008, Brooklyn Center ranked second in the number of foreclosures (439) in the North- west Hennepin County region. In 2089. Brooklyn Center had 300 forec|oaureu, ranking 2nd in the Northwest Hennepin County region. Total Monthly Housing Foreclosures for Brooklyn Center 10 MORE I MIM-111 LL 2 ca co Trend line Source: Hennepin County s»onfro Foreclosure List Cities in Northwest Hennepin Cities in Northwest Hennepin County With the Most County With the Most Foreclosures |m2OO8 Foreclosures im2UOS Number of Rank city Number of Rank City Foreclosures Foreclosures 1 Brooklyn Park 745 � 3 3 Maple Grove 281 . 3 Maple Grove 202 4 Crystal 179 4 Plymouth 176 5 Plymouth 162 5 Crystal 134 6 Champlin 154 6 Champlin 119 7 Robbinsdale 106 7 New Hope 82 8 New Hope 90 8 Robbinsdale 80 9 Rogers 80 9 Rogers 62 10 Golden Valley 74 10 Golden Valley 55 11 Corcoran 19 11 Dayton 18 12 Dayton 19 12 Osseo 17 13 Osseo 16 13 Corcoran 13 14 Hassan 10 14 Hassan 1 7 � � Source: Hennepin County nhomrx Foreclosure mst Source: Hennepin County Sheriffs Foreclosure List Brooklyn Center - Brooklyn Park , Corcoran Crystal Gc0den Valley ' Hanover Maple Grove - New Hope , Osseo m Northwest Hennepin Human Services Council Research, Planning and Coordination Brooklyn Center 2010 Profile fi �r t zY t,� ns -'t W � h3 ?>, w This report is a periodical publication of the Northwest Hennepin Human Services Council. It contains the latest statistics on demography, housing, income /poverty, economic assistance, and community services. Data were collected from the following sources: Hennepin County Assessor's Office Hennepin County Human Services and Public Health Department Hennepin County Sheriffs Foreclosure List Metropolitan Council Minnesota Childcare Resource and Referral Network Minnesota Department of Education Minnesota Department of Employment and Economic Development Minnesota Department of Human Services Minnesota State Demographer U.S. Census Bureau Please note: Some data cannot be updated due to the frequency of data collection, particularly demographic data from the Census. Please contact Northwest Hennepin Human Services Council if you would like 2000 Census data sets. Questions about Community Profiles should be addressed to: Research Coordinator Northwest Hennepin Human Services Council 6120 Earle Brown Drive, Suite 230 Brooklyn Center, Minnesota 55430 Phone: (763) 503 -2520 Fax: (763) 503 -2510 E -mail: info @nwhhsc.org www.nwhhsc.org t� Brooklyn Center m Brooklyn Park a Corcoran Crystal Golden Valley Hanover Maple Grove New Hope @ Osseo City Council Agenda Item No. 10a City Council Agenda Item Memorandum DATE: 22 June 2010 • TO: Curt Boganey, City Manager FROM: Daniel Jordet, Director of Fiscal & Support Services SUBJECT: 2009 Comprehensive Annual Financial Report (CA Recommendation: It is recommended that the City Council adopt a resolution accepting the 2009 Comprehensive Annual Financial Report. Background: On Monday evening, 7 June 2010, the City Council and Financial Commission met in a joint working session to hear from Jim Eichten of Malloy, Montague, Karnowski, Radosevich & Co., the City's auditors, about the results of their audit of our financial statements for the period ended 31 December 2009. This assembly of financial statements and data is known as the Comprehensive Annual Financial Report or 2009 CAFR. During the session Mr. Eichten reviewed the purpose of the audit process and the results of his firm's work on the 2009 CAFR review. Most importantly, the City received an unqualified opinion on the presentation of the 2009 financial information, also known as a clean opinion. This indicates that the accounting and reporting systems for the City conform in all material aspects to the regulations and practices of the Government Finance Officers Association, the Government Accounting Standards Board, and generally accepted accounting principles. • Supplemental opinions on Legal Compliance with State of Minnesota regulations and Internal Control and Operational issues revealed some adjustments that should be made to our financial data collection and reporting system. In addition, two comments were made about the City's system of internal controls over financial transactions that will be addressed in 2010. The comments /findings can be summarized as follows: • Continuation of invoice and journal entry review to assure proper presentation of financial data up to the start of the on -site financial audit. • Management staff should regularly review and sign off on payroll transactions. Both issues have been addressed since the audit consultation and should not appear in future audit reviews. In all, we believe the 2009 CAFR preparation and audit went quite well for Brooklyn Center. The information in the report reveals a City in good financial condition that should continue to monitor itself carefully to insure its continued fiscal responsibility. The attached resolution ratifies the work done by City staff and accepts the 2009 CAFR, Audit Opinion, and related materials. Budget Issues: The information from the 2009 CAFR will be used in preparing forecasts and projects for • future budgets. However, the 2009 CAFR has no direct impact on the budget. Member introduced the following resolution and moved its adoption: • RESOLUTION NO. RESOLUTION ADOPTING COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2009 WHEREAS, the City of Brooklyn Center is required by State Statute and City Charter to annually produce financial statements for submission to the Office of the State Auditor by June 30 each year; and WHEREAS, the City of Brooklyn Center is required to provide an auditor's opinion as to the representations in the annual financial statements; and WHEREAS, the financial statements have been audited by the independent CPA firm of Malloy, Montague, Karnowski, Radosevich & Co., P.A. as required; and WHEREAS, Malloy, Montague, Karnowski, Radosevich & Co., P.A. opined that the general purpose financial statements present fairly, in all material respects, the financial position of the City of Brooklyn Center as of December 31, 2009. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Comprehensive Annual Financial Report for the City of Brooklyn Center for the calendar year ended December 31, 2009, and all supporting documentation, is hereby adopted as the official financial record for the 2009 fiscal year. June 28, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • • City Council Agenda Item No. 10b COUNCIL ITEM MEMORANDUM • DATE: June 22, 2010 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Rental Dwelling License Approval for Partial Occupancy at Gateway Commons Recommendation: It is recommended that the City Council consider approval of a rental dwelling license for partial occupancy at Gateway Commons for building addresses at 2834 and 2838 Northway Drive. Background: At its February 8, 2010, meeting the City Council adopted Resolution No. 2010 -28 Receiving a Report from the City Manager Outlining a Partial Rental License Review Process for the Gateway Commons Apartments Located at 2802 -2838 and 2900 -2940 Northway Drive (see attached). On June 7, 2010, Gary Brummer, owner of Gateway Commons, submitted an application for rental dwelling license and paid the $832 license fee for two buildings located at 2834 and 2838 Northway Drive. Taxes and utilities are current. • Buildin g Y Official Gar Gilpin continues to work closely with Gary Brummer inspecting the units and buildings. The inspection has passed for these buildings and all license requirements have been met, as well as requirements of Resolution No. 2010 -28. Budget Issues: There are no budget issues to consider. Council Goals: Strategic: 1. We will stabilize and improve residential neighborhoods Mission Ensuring an attractive, cleats, safe community that enhances the quality, of life and preserves the pultlic, trust Member Tim Roche introduced the following resolution and moved its adoption: • RESOLUTION NO. 2010 -28 RESOLUTION RECEIVING A REPORT FROM THE CITY MANAGER OUTLINING A PARTIAL RENTAL LICENSE REVIEW PROCESS FOR THE GATEWAY COMMONS APARTMENTS LOCATED AT 2802 -2834 AND 2900- 2940 NORTHWAY DRIVE WHEREAS, the rental license for the apartments at 2802 -2834 and 2900 -294Q Northway Drive known as Gateway Commons is revoked; and WHEREAS, the owner Mr. Gary Brummer has requested that the City Council rescind the revocation for the property and allow for a partial occupancy license; and WHEREAS, the City Council directed the City Manager to meet with the owner to develop a process that would allow for a phased license rental process that would meet the objectives of the City; and WHEREAS, the parties have met and agreed to the conditions outlined in Exhibit A attached. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the City Council will review and consider the issuance of a license for partial occupancy of the property at 2802 -2834 and 2900- 2940 Drive known as Gateway Commons, in accordance with the conditions outlined in Exhibit A February 8 2010 1 e:f � -r Date Mayor ATTEST: " 4 —Mm�� City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Mark Yelich and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Tim Rohce,.Dan Ryan, and Mark Yelich; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. • RESOLUTION NO. 2010 -28 EXHIBIT A • Commons Partial Property Gateway p m/ License • The City Council will consider issuing a two year license for partial occupancy subject to all of the following conditions being met. • The license fee will be prorated based on the fee in effect at the time of occupancy approval. • The first approval (Buildings 2940 ,2928,2924,2936,2932,2920,29 require the following: o 100 % of all vacant units must be completely renovated to approved standards o All interior common areas must meet approved renovation standards • o All occupied units must meet housing code standards o All exterior areas must meeting housing code standards o All previously approved occupied units that become vacant must be renovated before new buildings are approved • Subsequent approvals (minimum of two buildings at a time ) require the following: • All previously approved occupied units that become vacant must be renovated before new buildings are approved • Same improvement standards as above required. City Council Agenda Item No. 10c COUNCIL ITEM MEMORANDUM . DATE: June 28, 2010 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Type IV 6 -Month Provisional Rental License for 4500 Winchester Lane Recommendation: It is recommended that the City Council consider approval of the issuance of a Type IV 6 -Month Provisional Rental License and Mitigation Plan for 4500 Winchester Lane. If the Council chooses to not issue the license, it is recommended that the motion be to direct staff to prepare proposed findings for denial of the rental license and draft said resolution for the next Council meeting. Background: This property is applying for a new rental license. It is the first rental property to qualify for a Type IV provisional rental license under the new rental license program, based on the number of property code violations found during the initial rental license inspection. Staff from Administration, Building & Community Standards and Police Departments met with the property owner regarding the mitigation plan, which requires Phase I, II and III of the Crime Free • Housing Program, and other items included by city ordinance for a Type IV License. In this case, with exception of the attendance at the rental managers meetings, the property owner has met the conditions of the ordinance and Mitigation Plan. Therefore, staff is recommending approval of the Type IV Rental License on condition of adherence to the Mitigation Plan. Please refer to the attached copy of the Mitigation Plan for more information. The following is a brief history of the license process actions: 04 -12 -10 Daniel Pettit applied for initial rental dwelling license for 4500 Winchester Lane, a single- family residential property 04 -20 -10 Initial rental inspection conducted (10 orders cited, see attached rental criteria) 04 -20 -10 Second rental inspection passed (Property passed reinspection later the same day of the initial inspection) 05 -14 -10 Letter sent to roe owner notifying of qualification for Type IV 6 -Month p p rty fY g q Yp Provisional Rental License, including the additional requirements to obtain a rental license (submit mitigation plan, completion of Phases 1, II, and III of Crime Free Housing Program, etc.) 05 -28 -10 Assistant City Manager/Director of Building and Community Standards Vickie Schleuning and Building Official Gary Gilpin met with owner and reviewed mitigation plan requirements 06 -17 -10 Mitigation Plan finalized • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM If approved, after six months, a new rental license will be required. The license process will begin in approximately four months. The new license will be based on the property code violations found during the .initial renewal license inspection and the number of validated police calls for services for disorderly activities and nuisances as defined in 12 -911. The terms of the mitigation plan must also be met. Section 12 -913 pertaining to Type IV Provisional Chapter 12- Excerpt from Chanter 12 of City Code of Ordinances: Section 12 -913. TYPE IV PROVISIONAL LICENSES. 1. Rental properties that meet the provisional licensing criteria as described in Section 12- 901 are eligible only for provisional licenses. 2. The City will provide by mail to each licensee a monthly report of any police and fire calls and incidents and applicable property Code violations as described in Section .12- 901. 3. Mitigation Plan. The applicant for a provisional license must submit for Council review a mitigation plan for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls and/or the property Code issues described in Section 12 -901 and 12 -911 to a level that qualifies for a Type I, II, or III license. The mitigation plan may include such steps as changes in tenant screening procedures, changes in lease terms, security measures, rules and regulations for tenant conduct, security personnel, and time frame to implement all • phases of the Crime Free Housing Program. 4. Council Consideration. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council disapproves an application and mitigation plan or approves it with conditions, it shall state its reasons for so doing in writing.. In evaluating a mitigation plan, the Council will consider, among other things, the facility, its management practices, the nature and seriousness of causes for police and fire incidences and/or property Code issues and the expected effectiveness of measures identified in the plan to reduce the number of police and fire incidences and/or property Code violations. In evaluating a mitigation plan submitted by an applicant already under a provisional license, the Council will also consider the effectiveness of measures identified in the applicant's previous mitigation plan and the need for different or additional measures to reduce police and fire incidences and/or property Code violations. 5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month, the licensee shall mail or deliver to the City Manager a written report describing all steps taken in furtherance of the mitigation plan during the preceding month. • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM • Budget Issues: There are no budget issues to consider. Council Goals: Strategic: We will stabilize and improve residential neighborhoods Attachment - Mitigation Plan - Rental Criteria • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust City of Brooklyn Center Phone: 763 -569 -3300 6301 Shingle Creek Parkway TTY voice 711 Far 763-569-3494 MN 55430 -2199 Brooklyn Center, wwwcityothrooklyncenterorg Rental License Mitigation Plan (Type N Provisional) Property Address: 4500 R'in¢chester: Lane, Brooklyn Center, MN Owner Name: W Daniel Pettit Local Agent: Same as Owner In accordance with the City of Brooklyn Center's Rental Housing Ordinance Chapter 12 -910, the above referenced property qualifies for a Type IV Rental License based on property code and nuisance violations and/or excessive police calls. A Mitigation Plan must be developed and reviewed by City Staff before the rental license application can be presented to the City Council to consider approval of a rental license. A Mitigation Plan provides an opportunity for the. property owner/agent and the City to review property concerns and identify possible solutions in order to improve the overall condition and livability of the property. The City Council will consider the following Mitigation Plan as part of the rental license approval process. NUtiza Plan Condition Date 7Date Completed or • Not Applicable (N /A)" CFHP phase L For license categories other than Type L, an owner, manager, or, I, cal _agen.. responsible - for the operation of the rental.prope ty must_camplete the Phase I training of the .Crime Free Housing Program. or a similar course approved by the City .Manager. Certificat<on as a rental property manager may also satisfy this iaquirement. Phase I includes the following a. Attend an eight -hour crime -free housing course presented 04-22 -2010 by police, fire, public housing and others. (Submit certificate to City.) b. Use a written lease including the Minnesota Crime Free 06 -01 -10 Housing Lease Addendum. (Submit copy to City) c. Check the criminal, background of all prospective tenants 06 -10-10 and, upon request, provide a copy of Third Party Background Check procedures for Tenants. Page 1 of 3 d. Actively pursue the eviction of tenants who violate the Ongoing terms of the lease and/or the Crime Free Lease Addendum. (Provide documentation if applicable.) CFE[ P Phase 11L , Includes Phase I plus-the following: a. Complete a Security Assessment through City Police 06 -08 -10 Department. Security Assessment Completed b. Complete the recommended security improvements. This phase will certify that the rental property has met the security requirements for the tenant's safety. List of recommended improvements: Confirmed: • Strike plates with four three inch screws added to both front 06 -17 -10 and back door. • 180 degree eye viewers added to the back door. 06 -17 -10 • Trimming of the bushes in the front of the home. 06 -17 -10 • Window locking/alarm added to the windows. 06 -17 -10 CFHP: Phase M. Includes Phases I and 11 plus the following. ! a. For properties with more than four units, conduct resident N/A training annually for the residents where crime watch and crime prevention tech ni ues are discussed. b. For properties with more than four units, hold regular NIA resident meetings. c. Have no City Code violations that were not resolved in Ongoing accordance with compliance orders within the past year, CFJgP'Phase III AKX Meeting_ Attendance a. Attend a minimum of 50 of Owners/Managers July 8, 2010 Association Meetings for Type IV License. Sept 9, 2010. (Dates and Times to Attend) Nov 18, 2010 Other Corrective Actions Specific to Property . a. Completion of property code compliance orders 04-20 -2010 (day of inspe ction ) b. Establish maintenance plan and long term capital improvements Items replaced/repaired or scheduled All completed - New water heater installed 10 -2008 - New fiunace 05 -2010 Plumbing, - Central air installed 05 -2010 Mechanical, - Painted all interior walls, doors and trim 042010 Electrical • - Painted exterior of house and (siding fascia and I inspected and Page 2 of 3 _ 1 approved 06 6 - soffit 04 2010 pp - New kitchen cabinets and counter tops 04 -2010 10 - New electric stovetoven 11 -2008 -New dishwasher 11 -2008 - Water softener installed 06 -2010 c. Plan to reduce number of calls for police and fire service No police call history at this time- new license 'd. Any additional steps to improve conditions and N/A management of property e. Any other relevant information N/A - Owner states drives by propeffty min 2 time//month -Owner states speaks with renter min. 1 time/month - Owner has Home Service Plus contract through 04/2011 If the Type IV Rental License is approved by the City Council, the Licensee must comply with the approved Mitigation Plan and all applicable city codes. No later than the 10" of each calendar month, the licensee must mail or deliver to the Building & Community Standards Department a written report describing all steps taken to comply with the Mitigation Plan. Owner or Agent Signature / Tie Date • 04A.11, L *77 Additional Owner or Agent Signature / Title Date (If applicable) Poli Department / Title Date A17 /0' &Comm tandards Depmt6KnfMitle bate Page 3 of 3 • City of X.BrooHyv Center- www.cityojbrooklyncenter.org 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 -2199 Phone 763.569.3300 TTY/Voice 711 Fax 763.569.3494 Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 1. Determining License Categories. License categories are based on property code and nuisance violations noted during the initial or renewal license inspection or for a category verification inspection, along with excessive validated police service calls occurring over a year. License categories are performance based and more accurately depict the condition of the property and the City costs of service. 2. Fees. Fee amounts are determined by the costs of the city to license, inspect, monitor and work with the property to ensure category conditions are met. License fees do not include reinspection fees, late fees, charges for criminal or civil enforcement actions, or other penalties. 3. Category Conditions. • The licensee or designated agent must meet the category conditions in the time period specified by the City. A licensee must meet all original conditions required by the License Category, even if a subsequent license category is achieved. 4. License Category Criteria. a. Property Code and Nuisance Violations. Property code violation rates will be based on the average number of property code violations per unit identified during the licensing inspection or category verification inspection. Property code violations for purposes of determining licensing categories shall include violations of property code and nuisances as defined in Chapter 12, 19, 7 and other applicable local ordinances. The City may, upon complaints or reasonable concerns that the establishment no longer complies with the license category criteria, perform a category verification inspection to the same standards as the license renewal inspection as indicated below. Inspections will be conducted in conjunction with established department policies. In cases where 100% of the units are not inspected, the minim inspection standards will be established as follows: • At least 75% of units will be inspected for properties with 15 or less units. • At least 25% of units, to include a minimum of 12 units, will be inspected for properties with 16 or more units. • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust Page 1 of 2 Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) Type I— 3 Year 1-2 units 0-1 Type II — 2 Year 1 -2 units Greater than 1 but not more than 4 .:� 7-111 W ,11 , 11 71 1"I ' ll Type III —1 Year 1 -2 units Greater than 4 but not more than 8 Type IV — 6 Months 1 -2 units Greater than 8 is a : b. Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of dete licensing categories shall include disorderly activities and nuisances as defined in Section 12 -911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson. • Calls will not be counted for purposes of determining licensing categories where the victim and suspect are "Family or household members" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1-2 0-1 Impact nom, a` 5 or more units 0 -0.35 Decrease 1 1 -2 Greater than 1 but not more than 3 Cate orY e_, g K �. 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories MEMO ON W 5 or more units Greater than 0.50 Mission: Ensuring 'an attractive, clean, safe community that enhances the quality of life and preserves the public trust Page 2 of 2 City Council Agenda Item No. lOd COUNCIL ITEM MEMORANDUM DATE: June 28, 2010 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Type IV 6 -Month Provisional Rental License for 4204 Lakebreeze Avenue Recommendation: It is recommended that the City Council consider approval of the issuance of a Type IV 6 -Month Provisional Rental License and mitigation plan for 4204 Lakebreeze Avenue. If the Council chooses to not issue the license, it is recommended that the motion be to direct staff to prepare proposed findings for denial of the rental license and draft said resolution for the next Council meeting. Background: This owner is applying for a new rental license. This property qualifies for a Type IV provisional rental license, based on the number of property code violations found during the initial rental license inspection. Staff from Administration, Building & Community Standards and Police Departments worked with the property owner regarding a mitigation plan, which requires Phase P p p Y g g g p q 1, II and III of the Crime Free Housing Program, and other items included by City ordinance for a . Type IV License. A Mitigation Plan has been developed addressing the requirements of the ordinance and any issues specific to the property. Therefore, staff is recommending approval of the Type IV Rental License on condition of adherence to the Mitigation Plan. Please refer to the attached copy of the Mitigation Plan for more information. The following is a brief history of the license process actions: 05 -10 -10 Andrew Hardacre applied for initial rental dwelling license for 4204 Lakebreeze Avenue, a four -plex residential property. 05 -18 -10 Initial rental inspection conducted (5.25 violations per unit were cited, see attached rental criteria) 06 -01 -10 Second rental inspection passed, with three weather /time deferrals given 06 -04 -10 Letter to owners notifying of qualification for Type IV 6 -Month Provisional Rental License, including additional requirements to obtain a rental license (submit mitigation plan, completion of Phases I, 11, and III of Crime Free Housing Program, etc.) 06 -23 -10 Mitigation Plan finalized If approved, after six months, a new rental license will be required. The license process will begin in approximately four months. The new license will be based on the property code violations found during the initial renewal license inspection and the number of validated police calls for services for disorderly activities and nuisances as defined in 12 -911. The terms of the mitigation plan must also be met. Section 12 -913 pertaining to Type IV Provisional Chapter 12- Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Excerpt from Chapter 12 of City Code of Ordinances: • Section 12 -913. TYPE IV PROVISIONAL LICENSES. 1. Rental properties that meet the provisional licensing criteria as described in Section 12- 901 are eligible only for provisional licenses. 2. The City will provide by mail to each licensee a monthly report of any police and fire calls and incidents and applicable property Code violations as described in Section 12- 901. 3. Mitigation Plan. The applicant for a provisional license must submit for Council review a mitigation plan for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls and/or the property Code issues described in Section 12 -901 and 12 -911 to a level that qualifies for a Type I, II, or III license. The mitigation plan may include such steps as changes in tenant screening procedures, changes in .lease terms, security measures, rules and regulations for tenant conduct, security personnel, and time frame to implement all phases of the Crime Free Housing Program. 4. Council Consideration. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an • opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council disapproves an application and mitigation plan or approves it with conditions, it shall state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will consider, among other things, the facility, its management practices, the nature and seriousness of causes for police and fire incidences and/or property Code issues and the expected effectiveness of measures identified in the plan to reduce the number of police and fire incidences and/or property Code violations. In evaluating a mitigation plan submitted by an applicant already under a provisional license, the Council will also consider the effectiveness of measures identified in the applicant's previous mitigation plan and the need for different or additional measures to reduce police and fire incidences and/or property Code violations. 5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month, the licensee shall mail or deliver to the City Manager a written report describing all steps taken in furtherance of the mitigation plan during the preceding month. Budget Issues: There are no budget issues to consider. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM • Council Goals: Strategic: We will stabilize and improve residential neighborhoods Attachment - Mitigation Plan - Rental Criteria • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust • Rental License Mitigation Plan (Type IV Provisional License) Property Address: 4204 Lakebreeze Avenue North j Owner Name. Andrew Hardacre Local Agent: same as owner In accordance with the City of Brooklyn Center's Rental Housing Ordinance Chapter 12- 910, the above referenced property qualifies for a Type IV Rental License based on property code and nuisance violations and/or excessive police calls. A Ivfitigation Plan must be developed and reviewed by City Staff before the rental license application can be presented to the City Council to consider approval of a rental license. A Mitigation PIan provides an opportunity for the property owner /agent and the City to review property concerns and identify possible solutions in order to improve the overall condition and livability of the property. The City Council will consider the following Mitigation Plan as part of the rental license approval process. ltitigation Plan Condition 1?ate Completed or Not If not completed, Required A plicable N/A � Completion Date `� A ." W'i'x-,� fi, 3, x€ t i y �E a. Attend an eight hour I will plan to attend the crime crime -free housing course free house course by presented by police, fire. August 15th and submit public housing and certificate to City upon others. (Submit completion. 4 certificate to City.) Notes: } b. Use a written lease I Each and event' tenant will including the Minnesota need to sign and agree to Crime Free Housing terns in the MN Crime Lease Addendum. Free Housing Lease (Submit copy to Addendum. Addendum City) Notes: used will be from City _ website. I am utilizing C. Check the criminal the services of v • background of all Tenant Check based in St. prospective ective tenants and, Paul to do 5 Check Service" for each tenant upon request, provide a application - Credit copy of Third Party Background Check Report, Eviction Check, I procedures for I Employment Verification, Tenants. Notes: { Landlord/Rental Reference, IIII CountylState«ide f Criminal and sex offender search. Quality of the individual and income are key criteria for consideration. d. Actively pursue the I will be aggressive in dealing eviction of tenants who j ` with tenants that break a violate flee terms of the E I terms of the Lease and lease and/or the Crime � Crime Free addendum Free Lease Addendum. and also late pays to (Provide documentation maintain high standard €o residing is. Hope if applicable.) Notes: tenants res A arbments. IT Lill a. Complete a Security r Have contacted Becky at Assessment through Ciq Crime Prevention. security Assessment Department. f Police De p scheduled for June 24 m at : f Notes 8:30 am. b. Complete the To be determined based on recommended security security assessment improvements. This findings. Will complete phase will certify that the security improvements in rental property has met I next 30 days. the security requirements for the tenant's safety. (List of recommended ! improvements and accomplish dates) Notes: : i y' va o,•" r�'( n ,n`r �'?�"' x , r .. i #, w,, a. For properties with more Not applicable. than four units, conduct resident training annually for the residents where crime watch and crime prevention techniques are I • discussed. i Notes: b. For properties with more Not applicable. than four units, hold regular resident meetings. Notes: c. Have no City Code Not applicable to the best violations that were not of my knowledge. resolved in accordance with compliance orders III within the past year_ Notes: befirii a Attend a minimum of Will attend three ARM 50% of Owners/Managers meetings in the next 6 Association Meetings months- (ARM). (Dates and Times to Attend) Notes: a. Completion of property None outstanding to best of my f code compliance knowledge, i orders Notes: b. Establish maintenance Every unit wwcompletely plan and long term capital renovated - new carpet, improvements (List new paint, new floors, {� items reportedly updated appliances. replaced/repaired or j Broken windows were I scheduled) Notes: repaircd. Blinds replaced. 3 Exterior and curb appeal was improved with removal of volunteer trees, weeding, regular lawn maintenance. According to inspection roof has over five years. Plan to complete exterior painting of stucco and all windows in next 12- 1 S months. I c. Plan to reduce number of The tenant screening process t calls for police and fire will help in service Notes: reducing/eliminating policafirc calls. In addition, under my ownership compared to p revious owner who was • • not actively involved or present at building regularly will also reduce the calls. d. Any additional steps to Plan to he visible to my improve conditions and tenants by being at j management of property building regularly, always Notes: reachable and show care /compassion/interest in i the lives of m • tenants. e. Other relevant information Notes: If the Type IV Rental License is approved by the City Council, the Licensee must comply with the approved Mitigation Plan and all applicable city codes. No later than the le of each calendar month, the licensee must mail or deliver to the Building & Community Standards Department a written report describing all steps taken to comply with the Mitigation Plan. w � ard b A3 /tr A �a� �A— / • Owner or Agent Name Signatur Date (Please Print) Additional Owner or Agent Name Signature Date (Please Print) V 'P ice Department / Title Dat ng & C , 06unity Standards Department /Title Date Form 06162010 • City of -j OQ� h Center- www.cityojbrooklyncenter.org 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 -2199 Phone 763.569.3300 M/Voice 711 Fax 763.569.3494 Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 1. Determining License Categories. License categories are based on property code and nuisance violations noted during the initial or renewal license inspection or for a category verification inspection, along with excessive validated police service calls occurring over a year. License categories are performance based and more accurately depict the condition of the property and the City costs of service. 2. Fees. Fee amounts are determined by the costs of the city to license, inspect, monitor and work with the property to ensure category conditions are met. License fees do not include reinspection fees, late fees, charges for criminal or civil enforcement actions, or other penalties. 3. Category Conditions. The licensee or designated agent must meet the category conditions in the time period specified by the City. A licensee must meet all original conditions required by the License Category, even if a subsequent license category is achieved. 4. License Category Criteria. a. Property Code and Nuisance Violations. Property code violation rates will be based on the average number of property code violations per unit identified during the licensing inspection or category verification inspection. Property code violations for purposes of dete licensing categories shall include violations of property code and nuisances as defined in Chapter 12, 19, 7 and other applicable local ordinances. The City may, upon complaints or reasonable concerns that the establishment no longer complies with the license category criteria, perform a category verification inspection to the same standards as the license renewal inspection as indicated below. Inspections will be conducted in conjunction with established department policies. In cases where 100% of the units are not inspected, the minim inspection standards will be established as follows: • At least 75% of units will be inspected for properties with 15 or less units. • At least 25% of units, to include a minimum of 12 units, will be inspected for properties with 16 or more units. • Mission: Ensuring an attractive, clean, safe conununity that enhances the quality of life and preserves the public trust Page I of 2 Property Code and Nuisance Violations Criteria • License Category Number of Units Property Code Violations g rY P �Y per P (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 INA Type II — 2 Year 1 -2 units Greater than 1 but not more than 4 Type III — 1 Year 1 -2 units Greater than 4 but not more than 8 Type IV - 6 Months 1 -2 units Greater than 8 b. Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of determining licensing categories shall include disorderly activities and nuisances as defined in Section 12 -911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson. • Calls will not be counted for oses of determining licensing categories where the victim and Pm'P g g o g suspect are "Family or household members" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act Minnesota Statutes Section 518B.01 Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1 -2 0 -1 Impact 5 or more units 0-0.35 Decrease 1 1 -2 Greater than 1 but not more than 3 Category � , , Y 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories $� - t� 5 or more units Greater than 0.50 Mission: Ensuring an attractive, clean, safe conununitp that enhances the duality of life andpreserves thepublic trust Page 2 of 2 City Council Agenda Item No. 10e ; COUNCIL ITEM MEMORANDUM DATE: June 28, 2010 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Type IV 6 -Month Provisional Rental License for 5949 Xerxes Avenue North Recommendation: It is recommended that the City Council consider approval of the issuance of a Type IV 6 -Month Provisional Rental License and mitigation plan for 5949 Xerxes Avenue North. If the Council chooses to not issue the license, it is recommended that the motion be to direct staff to prepare proposed findings for denial of the rental license and draft said resolution for the next Council meeting. Background: This owner is applying for a new rental license. This property qualifies for a Type IV provisional rental license, based on the number of property code violations found during the initial rental license inspection. Staff from Administration, Building & Community Standards and Police Departments worked with the property owner regarding a mitigation plan, which requires Phase I, II and III of the Crime Free Housing Program, and other items included by City ordinance for a • Type IV License. A Mitigation Plan has been developed addressing the requirements of the ordinance and any issues specific to the property. Therefore, staff is recommending approval of the Type IV Rental License on condition of adherence to the Mitigation Plan. Please refer to the attached copy of the Mitigation Plan for more information. The following is a brief history of the license process actions: 03 -22 -10 Orrin Hager and Ha Hager applied for initial rental dwelling license for 5949 Xerxes Avenue North, a single- family residential property. 04 -16 -10 Initial rental inspection conducted (Seventeen orders cited, see attached Rental Criteria) 05 -28 -10 Second rental inspection passed 06 -04 -10 Letter to owners notifying of qualification for Type IV 6 -Month Provisional Rental License, including additional requirements to obtain a rental license (submit mitigation plan, completion of Phases I, II, and III of Crime Free Housing Program, etc.) 06 -21 -10 Mitigation Plan finalized If approved, after six months, a new rental license will be required. The license process will begin in approximately four months. The new license will be based on the property code violations found during the initial renewal license inspection and the number of validated police calls for services for disorderly activities and nuisances as defined in 12 -911. The terms of the mitigation plan must also be met. Section 12 -913 pertaining to Type IV Provisional Chapter 12- Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust i COUNCIL ITEM MEMORANDUM Excerpt from Chanter 12 of Citv Code of Ordinances: Section 12 -913. TYPE IV PROVISIONAL LICENSES. 1. Rental properties that meet the provisional licensing criteria as described in Section 12- 901 are eligible only for provisional licenses. 2. The City will provide by mail to each licensee a monthly report of any police and fire calls and incidents and applicable property Code violations as described in Section 12- 901. 3. Mitigation Plan. The applicant for a provisional license must submit for Council review a mitigation plan for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls and/or the property Code issues described in Section 12 -901 and 12 -911 to a level that qualifies for a Type I, II, or III license. The mitigation plan may include such steps as changes in tenant screening procedures, changes in lease terms, security measures, rules and regulations for tenant conduct, security personnel, and time frame to implement all phases of the Crime Free Housing Program. 4. Council Consideration. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an • opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council disapproves an application and mitigation plan or approves it with conditions, it shall state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will consider, among other things, the facility, its management practices, the nature and seriousness of causes for police and fire incidences and/or property Code issues and the expected effectiveness of measures identified in the plan to reduce the number of police and fire incidences and/or property Code violations. In evaluating a mitigation plan submitted by an applicant already under a provisional license, the Council will also consider the effectiveness of measures identified in the applicant's previous mitigation plan and the need for different or additional measures to reduce police and fire incidences and/or property Code violations. 5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month, the licensee shall mail or deliver to the City Manager a written report describing all steps taken in furtherance of the mitigation plan during the preceding month. Budget Issues: There are no budget issues to consider. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life andpreserves the public trust COUNCIL ITEM MEMORANDUM Council Goals: Strategic: We will stabilize and improve residential neighborhoods Attachment - Mitigation Plan - Rental Criteria • • __ Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust • City of Brooklyn Center Phone- 763 - 569 -3300 6301 Shingle Creek Parkway TTY/ Voice 711 Brooklyn Center, MN 55430 -2199 Fax: 763-569 -3494 tivwuv. citvofbrook1 mcenter. org Rental License Mitigation Plan (Type IV Provisional License) Property Address: 5949 Xerxes Ave N Owner Name: Orrin & Ha Hager Local Agent: N/A In accordance with the City of Brooklyn Center's Rental Housing Ordinance Chapter 12 -910, the above referenced property qualifies for a Type IV Rental License based on property code and nuisance violations and/or excessive police calls. A Mitigation Plan must be developed and reviewed by City Staff before the rental license application can be presented to the City Council to consider approval of a rental license. A Mitigation Plan provides an opportunity for the property owner /agent and the City to review property concerns and identify possible solutions in order to improve the overall condition and livability of the property. The City Council will consider the following Mitigation Plan as part of the rental license approval process. • Midi ation Plan Condition Date Completed or If not completed, Not Applicable N/A Required Com letion Date CFTIP Phase I. For license categories other than Type I, an owner, manager, or local agent responsible for the operation of the rental property must complete the Phase I training of the Crime Free Housing Program or a similar course approved by the City Manager. Certification as a rental property manager may also satisfy this requirement. Phase I includes odes the following: a. Attend an eight -hour crime -free housing course presented by 07/27/2010 police, fire, public housing and others. (Submit certificate to City.) Notes: b. Use a written lease including the Minnesota Crime Free 06/25/2010 Housing Lease Addendum. (Submit copy to City) Notes: c. Check the criminal background of all prospective tenants 06/01 /2010 and, upon request, provide a copy of Third Party Background Check procedures for Tenants. Page 1 of 3 • Notes: d. Actively pursue the eviction of tenants who violate the terms N/A of the lease and/or the Crime Free Lease Addendum. (Provide documentation if applicable.) Notes: CFHP Phase H. Includes Phase I plus the following: a. Complete a Security Assessment through City Police 06119/2010 Department. Notes: b. Complete the recommended security improvements. This 06/30/2010 phase will certify that the rental property has met the security requirements for the tenant's safety. (List of recommended improvements and accomplish dates) Notes: CFHP Phase III. Includes Phases I and U plus the following: a. For properties with more than four units, conduct resident N/A training annually for the residents where crime watch and crime prevention techniques are discussed. • Notes: b. For properties with more than four units, hold regular N/A resident meetings. Notes: c. Have no City Code violations that were not resolved in 06/30/2011 accordance with compliance orders within the past year. Notes: CFHP Phase III- A.R.M. Meeting Attendance a. Attend a minimum of 50% of Owners/Managers Association 07/08/2010 Meetings (ARM). 09/09/2010 (Dates and Times to Attend) Notes: Other Corrective Actions Specific to Property a. Completion of property code compliance orders 06/30/2010 Notes: b. Establish maintenance plan and long term capital 06/25/2010 improvements (List items reportedly replaced/repaired or scheduled) Notes: See my letter c. Plan to reduce number of calls for police and fire service 06/30/2010 Page 2 of 3 • Notes: d Any additional steps to improve conditions and management 6/30/2010 of property Notes: See my letter e. Other relevant information Notes: If the Type IV Rental License is approved by the City Council, the Licensee must comply with the approved Mitigation Plan and all applicable city codes. No later than the I O` of each calendar month, the licensee must mail or deliver to the Building & Community Standards Department a written report describing all steps taken to comply with the itigation Plan. 6 f) 1z P I C &ae /" 9�� - Y / X'1 /(0 14L, Owner or Agent Name Sig6f6re I Date (Please Print) 11�I���`" Additional Owner or Agent Name Signature Date (Please Print) Police Department /Title Die t • Bu d' g & ComTKIty Standards Department / Title Date Form 06162010 i Page 3 of 3 June 9, 2010 City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 -2199 RE: Rental Property at 5949 Xerxes Ave N Mitigation Plan Dear Sir or Madam: I am writing you in response to a recent letter requiring me to submit a mitigation plan to the city. I would like to outline some of the improvements being made to the property as well as outline my thoughts on selecting and dealing with tenants. A lot of time, money and sweat have been put into updating the property. The previous tenants did not properly take care of it which required us to make a significant investment to get it up to code. I am happy to say that all violations have been addressed and the house is now up to code. In addition, more work has been done (or is in progress) and here is a list — not necessarily complete — of projects that have been either completed or I will try to finish . by June 25, 2010: • The exterior of the house has been repainted • All windows have been replaced • The hardwood floors are in the process of being refinished • The broken water heater has been replaced • Electrical repairs were done in the garage, outside and basement • Gutters were added to one side of the garage and existing ones were repaired and cleaned • A sidewalk was added between the house and garage for easier access to the house as well as to address some drainage issues • The concrete stairs leading into the house have been repaired • The dirt/gravel driveway has been replaced with one made of asphalt • A variety of landscaping tasks have been completed and more are underway In terms of future improvements, I'm considering adding half a bath to the basement but may not be able to do this because of the cost. I do intend do make a weekly visit (at least just a drive by) when renting it out. Now I'd like to turn the discussion to tenants. First I should mention that this is my first time being a landlord so I spoke with other landlords to get some advice. Moreover, I spoke with the neighbors and city inspector and learned a bit about the "colorful" history of the most recent tenants. • I think that both the city and I have a strong mutual concern about the condition of the property and at least as much concern that any tenants be law abiding and not a nuisance to me, the neighbors or the city. I believe the best way to achieve this is to do a thorough background check of potential renters so I envision a three -prong approach to do this. First, I contact their current landlord and get whatever information I can. What do you think of the tenants? Do they keep care of the property? Do they pay their rent on time? I will ask these and other questions to be able to make a good decision. I've heard a story of where a previous landlord was trying to pawn off bad tenants to a landlord I know by saying that they were actually "good tenants ", so getting information from previous landlords is only the first step. i Second, I will get the prospective tenant's social security number so I can run a background check against a national database to see their address history, see if they have any criminal backgrounds, see if they have any civil judgments against them, etc. Third, and this was a suggestion by the city inspector (I think that his name was Paul) was to make a surprise visit to their current residence. Is the yard kept up and free of refuse? Does their current residence look clean or does it look like a trash heap? I believe that by doing these three things I will greatly reduce the chance of getting stuck with problem tenants. In the event that I do get stuck with some bad tenants, I do care about the property - -- it is an investment after all - -- and will immediately take action. If there are illegal activities going on I'll contact the property authorities. If the tenants trash the place and are in violation of the Minnesota Crime Free Housing Lease Addendum I'll take the appropriate action. I have the CPTED inspection scheduled for 6/16/2010. 1 will attend the July 8` ARM meeting for certain, and will try to attend both the September 9 and November 18' meetings schedule permitting. I want to take the 8 -hour crime free housing course by the end of the month - is this reasonable assumption on my part? If I have omitted anything or you require additional information please let me know. Best Regards, Orrin John Hager 2741 Yosemite Ave S St. Louis Park, MN 55416 Phone: (952) 929 -1453 Email: ohager @comcast.net City of X-BrooHy-h C www.cityojbrooklyncenter.org • 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 -2199 Phone 763.569.3300 =Voice 711 Fax 763.569.3494 Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 1. Determining License Categories. License categories are based on property code and nuisance violations noted during the initial or renewal license inspection or for a category verification inspection, along with excessive validated police service calls occurring over a year. License categories are performance based and more accurately depict the condition of the property and the City costs of service. 2. Fees. Fee amounts are determined by the costs of the city to license, inspect, monitor and work with the property to ensure category conditions are met. License fees do not include reinspection fees, late fees, charges for criminal or civil enforcement actions, or other penalties. 3. Category Conditions. • The licensee or designated agent must meet the category conditions in the time period specified by the City. A licensee must meet all original conditions required by the License Category, even if a subsequent license category is achieved. 4. License Category Criteria. a. Property Code and Nuisance Violations. Property code violation rates will be based on the average number of property code violations per unit identified during the licensing inspection or category verification inspection. Property code violations for purposes of determining licensing categories shall include violations of property code and nuisances as defined in Chapter 12, 19, 7 and other applicable local ordinances. The City may, upon complaints or reasonable concerns that the establishment no longer complies with the license category criteria, perform a category verification inspection to the same standards as the license renewal inspection as indicated below. Inspections will be conducted in conjunction with established department policies. In cases where 100% of the units are not inspected, the minimum inspection standards will be established as follows: • At least 75% of units will be inspected for properties with 15 or less units. • At least 25% of units, to include a minimum of 12 units, will be inspected for properties with 16 or more units. • Mission: Ensuring an attractive, clean, safe communit3 that enhances the qualio3 of life and preserves the public trust Page I of 2 Property Code and Nuisance Violations Criteria License o Cate Number of Units Pro Code Violations • Category Property p er P (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 a 3 � k ,U _.`i.;,z- �s „k�. tv Type II 2 Year 1 -2 units Greater than 1 but not more than 4 3 1 r , ANNE M Type III —1 Year 1 -2 units Greater than 4 but not more than 8 Type IV — 6 Months 1 -2 units Greater than 8 Y N , , . b. Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of dete licensing categories shall include disorderly activities and nuisances as defined in Section 12 -911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson. Calls will not be counted for oses of determining licensing categories where the victim and • Pm'P g g o g suspect are "Family or household members” as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes Calls Per Unit/Year No Category 1 -2 0 -1 Impact �� 5 or more units 0 -0.35 Decrease 1 1 -2 Greater than 1 but not more than 3 Category W, 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories 5 or more units Greater than 0.50 • Mission: Ensuring an attractive, clean, safe conununity that enhances the quality of life and preserves the public trust Page 2 of 2 City Council Agenda Item No. 10f COUNCIL ITEM MEMORANDUM • DATE: June 28, 2010 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Type IV 6 -Month Provisional Rental License for 6701 Bryant Avenue North Recommendation: It is recommended that the City Council consider approval of the issuance of a Type IV 6 -Month Provisional Rental License and mitigation plan for 6701 Bryant Avenue North. If the Council chooses to not issue the license, it is recommended that the motion be to direct staff to prepare proposed findings for denial of the rental license and draft said resolution for the next Council meeting. Background: This owner is applying for a new rental license. This property qualifies for a Type IV provisional rental license, based on the number of property code violations found during the initial rental license inspection. Staff from Administration, Building & Community Standards and Police Departments worked with the property owner regarding a mitigation plan, which requires Phase I, II and III of the Crime Free Housing Program, and other items included by City ordinance for a • Type IV License. A Mitigation Plan has been developed addressing the requirements of the ordinance and any issues specific to the property. Therefore, staff is recommending approval of the Type IV Rental License on condition of adherence to the Mitigation Plan. Please refer to the attached copy of the Mitigation Plan for more information. The following is a brief history of the license process actions: 04 -08 -10 Tim Xiong applied for initial rental dwelling license for 6701 Bryant Avenue North, a single - family residential property. 04 -28 -10 Initial rental inspection conducted (Seventeen orders cited, see attached rental criteria) 05 -27 -10 Second rental inspection passed 05 -28 -10 Letter to owners notifying of qualification for Type IV 6 -Month Provisional Rental License, including additional requirements to obtain a rental license (submit mitigation plan, completion of Phases I, II, and III of Crime Free Housing Program, etc.) 06 -23 -10 Mitigation Plan finalized If approved, after six months, a new rental license will be required. The license process will begin in approximately four months. The new license will be based on the property code violations found during the initial renewal license inspection and the number of validated police calls for services for disorderly activities and nuisances as defined in 12 -911. The terms of the mitigation plan must also be met. Section 12 -913 pertaining to Type IV Provisional Chapter 12- Alission: Fusurinp an attractive., clean, safe contnuinity that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Excerpt from Chanter 12 of City Code of Ordinances: . Section 12 -913. TYPE IV PROVISIONAL LICENSES. 1. Rental properties that meet the provisional licensing criteria as described in Section 12- 901 are eligible only for provisional licenses. 2. The City p Y will provide b mail to each licensee a monthly report of an police and fire p Y p calls and incidents and applicable property Code violations as described in Section 12- 901. 3. Mitigation Plan. The applicant for a provisional license must submit for Council review a mitigation plan for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls and/or the property Code issues described in Section 12 -901 and 12 -911 to a level that qualifies for a Type I, II, or III license. The mitigation plan may include such steps as changes in tenant screening procedures, changes in lease terms, security measures, rules and regulations for tenant conduct, security personnel, and time frame to implement all phases of the Crime Free Housing Program. 4. Council Consideration. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an . opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council disapproves an application and mitigation plan or approves it with conditions, it shall state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will consider, among other things, the facility, its management practices, the nature and seriousness of causes for police and fire incidences and/or property Code issues and the expected effectiveness of measures identified in the plan to reduce the number of police and fire incidences and/or property Code violations. In evaluating a mitigation plan submitted by an applicant already under a provisional license, the Council will also consider the effectiveness of measures identified in the applicant's previous mitigation plan and the need for different or additional measures to reduce police and fire incidences and/or property Code violations. 5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month, the licensee shall mail or deliver to the City Manager a written report describing all steps taken in furtherance of the mitigation plan during the preceding month. Budget Issues: There are no budget issues to consider. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Council Goals: • Strategic: We will stabilize and improve residential neighborhoods Attachment - Mitigation Plan - Rental Criteria • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust w • City of Brooklyn Center Phone: 763 - 569 -3300 6301 Shingle Creek Parkway /vo 7 11 r =70v Fax. 763 -564 -.3444 Brooklyn Center MN 55430 - 2199 wratral�cityotbroollyncentei:org Rental License Mitigation Plan (Type IV Provisional License) Property Address: 6701 Bryant Ave N Brooklyn Center MN 55430 _} Owner Name: Tim Xiong Local Agent: In accordance with the City of Brooklyn Center's Rental Housing Ordinance Chapter 12 -910, the above referenced property qualifies for a Type IV Rental License based on property code and nuisance violations and /or excessive police calls. A Mitigation Plan must be developed and reviewed by City Staff before the rental license application can be presented to the City Council to consider approval of a rental license. A Mitigation Plan provides an opportunity for the property owner /agent and the City to review property concerns and identify possible solutions in order to improve the overall condition and livability of the property. The City Council will consider the following Mitigation Plan as part of the rental license approval process. Mitigation Plan Condition Date Completed or If not completed, Not Applicable N/A Required • Cam letion Date CFHP.Phase L For license categories other than Type 1, an owner, manager, or local agent responsible for the operation of thv rental property must complete the Phase I training of the Crime Free Housing Program or a similar course approved by the City Manager. Certification as a rental property manager may also satisfy this requirement. Phase I includes the following: a. Attend an eight -hour crime -free housing course presented by July 27, 2010 police, fire, public housing and others. (Submit certificate to City.) Notes: b. Use a written lease including the Minnesota Crime Free Crime free lease Housing Lease Addendum. addendum. (Submit copy to City) Will provide to tite city Notes: within 10 working days. c. Check the criminal background of all prospective tenants Done 2 yrs ago at Page 1 of 3 • • and, upon request, provide a copy of Third Party original license Background Check procedures for Tenants. application. Notes: d. Actively pursue the eviction of tenants who violate the terms Plan on -going checks of the lease and/or the Crime Free Lease Addendum. (Provide documentation if applicable.) Notes: CFHP -Phase ILL Includes Phase I plus the following: ,. Complete within a. Complete a Security Assessment through City Police 30 days Department. Notes: Complete by the b. Complete the recommended security improvements. This end of July phase will certify that the rental property has met the security requirements for the tenant's safety. (List of recommended improvements and accomplish dates) Notes: CFHP Phase M. Includes Phases I and U plus the following: a. For properties with more than four units, conduct resident N/A training annually for the residents where crime watch and • crime prevention techniques are discussed. Notes: Nf A b. For properties with more than four units, hold regular resident meetings. Notes: None c. Have no City Code violations that were not resolved in accordance with compliance orders within the past year. Notes: CFSP Phase;III- A.R1Vh Meeting Attendance" " Attend 3 meetings a. Attend a minimum of 50% of Ownersf Managers Association within 6 Meetings (ARM). month period (Dates and Times to Attend) Notes: Other Corrective Actions Specific to Property a. Completion of property code compliance orders Completed 5/26110 Notes: ` b. Establish maintenance plan and long term capital House has newer roof improvements . and windows. (List items reportedly replaced/repaired or scheduled) Plan on replacin • Page 2 of 3 Notes: furnace and water heater within the next 5 years. Homeowner also has Home Service Plus. c. Plan to reduce number of calls for police and fire service Notes: Communicate with tenants regarding crime. d. Any additional steps to improve conditions and management Fix small of property problems and check with Notes: tenants on a regular basis. e. Other relevant information Stops by house on a monthly Notes: basis. _ [f the Type IV Rental License is approved by the City Council, the Licensee must comply with the approved Mitigation Plan and all applicable city codes. No later than the 10 of each calendar month, the licensee must mail or deliver to the Building & Community Standards Department a written report describing all steps taken to comply with the Mitigation Plan. ; Lwner r Agent Nam Si a ate (Please Pu) X,, Additional Owner or Agent Name Signature Date (Please Print) Police Department / Title ate B t1 ' g & Comm nity Standards Department / Title Date Form 05162010 Page 3 of 3 • City of X -BrooHyv Center— www.cityojbrooklyncenter.org • 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 -2199 Phone 763.569.3300 M/Voice 711 Fax 763.569.3494 Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 1. Determining License Categories. License categories are based on property code and nuisance violations noted during the initial or renewal license inspection or for a category verification inspection, along with excessive validated police service calls occurring over a year. License categories are performance based and more accurately depict the condition of the property and the City costs of service. 2. Fees. Fee amounts are determined by the costs of the city to license, inspect, monitor and work with the property to ensure category conditions are met. License fees do not include reinspection fees, late fees, charges for criminal or civil enforcement actions, or other penalties. 3. Category Conditions. • The licensee or designated agent must meet the category conditions in the time period specified by the City. A licensee must meet all original conditions required by the License Category, even if a subsequent license category is achieved. 4. License Category Criteria. a. Property Code and Nuisance Violations. Property code violation rates will be based on the average number of property code violations per unit identified during the licensing inspection or category verification inspection. Property code violations for purposes of determining licensing categories shall include violations of property code and nuisances as defined in Chapter 12, 19, 7 and other applicable local ordinances. The City may, upon complaints or reasonable concerns that the establishment no longer complies with the license category criteria, perform a category verification inspection to the same standards as the license renewal inspection as indicated below. Inspections will be conducted in conjunction with established department policies. In cases where 100% of the units are not inspected, the minimum inspection standards will be established as follows: • At least 75% of units will be inspected for properties with 15 or less units. • At least 25% of units, to include a minim of 12 units, will be inspected for properties with 16 or more units. • Mission: Ensuring an attractive, clean, safe conununi4 that enhances the duality of life and preserves the public trust Page 1 of 2 Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations • g ry P �3' per P (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 Type H — 2 Year 1 -2 units Greater than 1 but not more than 4 . y ei y ffi k ` Z - Type III —1 Year 1 -2 units Greater than 4 but not mor than 8 WOM - Type IV — 6 Months 1 -2 units Greater than 8 HOW IN b. Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of determining licensing categories shall include disorderly activities and nuisances as defined in Section 12 -911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson. Calls will not be counted for oses of determining licensing categories where the victim and • PmP g g o g suspect are "Family or household members" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1 -2 0 -1 Impact i - 5 or more units 0 -0.35 Decrease 1 1 -2 Greater than 1 but not more than 3 Category y 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories 5 or more units Greater than 0.50 Mission: Ensuring an attractive, clean, safe communio that enhances the quality? of life and preserves the public trust Page 2 of 2 City Council Agenda Item No. 10g COUNCIL ITEM MEMORANDUM • DATE: June 23, 2010 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development � SUBJECT: Resolution Approving a Fourth Amendment to a Development Agreement and Certain Related Agreements Attached Thereto as Exhibits (License, Deed, Amended Easement, Lease Amendment and Subordination Agreements) Recommendation: It is recommended that the City Council consider approval/adoption of Resolution Approving a Fourth Amendment to a Development Agreement and Certain Related Agreements Attached Thereto as Exhibits (License, Deed, Amended Easement, Lease Amendment and Subordination Agreements) Background: The following outlines the actions of the City Council, the EDA and the BRA pertaining to the development agreement for the phased development of Lot 1, Block 1, Brooklyn Farm 2 nd Addition. . On October 23, 2006, the City Council and the EDA adopted the following resolutions relating to the development plans of the Brooklyn Hotel Partners, LLC for the development of an Embassy Suites Hotel and a 2 nd phase for a complementary hotel: City Council Resolution No. 2006 -121, ` Resolution Approving Property Tax Abatement and Authorizing, Execution of a Development Agreement EDA Resolution No. 2006 -12, ` Resolution Deleting_ Property From Tax Increment District No 2 and Approving and Authorizing Execution of the Development Agreement. On July 23, 2007, the EDA adopted Resolution No. 2007 -12, approving the First Amendment to the Development Agreement, which revised the construction schedule and approved the Parking, Access and Pedestrian Link Easement Agreement. Additionally, on July 23, 2007, the BRA, owners of the land for the Earle Brown Heritage Center, adopted Resolution No. 2007 -01, HRA Resolution Approving and Authorizing Execution of a Parking Access and Pedestrian Link Easement Agreement between the Economic Development Authority Development Authority, the City of Brooklyn Center Brooklyn Center, and Brooklyn Hotel Partners, LLC Mission: Ensuring an attractive, clean, safe community that enhances the duality of life and preserves the public trust COUNCIL ITEM MEMORANDUM On October 8, 2007, the EDA approved Resolution No. 2007 -19, Resolution Approving and i Authorizing Execution of a Second Amendment to the Development Agreement. This amendment extended the closing date and revised the construction schedule. On December 27, 2007, the EDA at a Special Meeting adopted Resolution No. 2007 -23, R esolution Approving a Third Amendment to the Development Agreements and Certain Lender Consents /Subordination and Authorizing the EDA Executive Director to Execute Certain Documents The Third Amendment provided for the allocation of the tax abatements and business subsidy job requirements to the respective phases; approved assignment and subordination of the development agreement in favor of Prudential Insurance Company of America; and consented to the assignment of Right to Receive Tax Abatement Payments to the Hurlbut -Zeppa Charitable Trust AR. On October 13, 2008, the EDA approved Resolution No. 2008 -10, ` Resolution Approving Lease Agreem with Brooklyn Hotel Partners LLC for the D -Barn at the Earle B rown Heritage Center and Authorizing the EDA Executive Director to Execute Said Ag reement'. On June 5, 2009, the Developer was notified that an Event of Default as defined in the Development Agreement had occurred. Over the last year, the City and Developer have worked on a compromise to settle their respective rights and claims under the Development Agreement and the Lease Agreement. On June 16, 2010, the City received confirmation that the Developer had executed the Fourth Amendment to the Development Agreement. On June 18, 2010, the City received confirmation that the Hurlbut -Zeppa Charitable Trust had executed the security interest subordination agreement pertaining to the right of setoff and security agreement. Fourth Amendment to the Development Agreement The Fourth Amendment to the Development Agreement provides a global resolution to the default of the Development Agreement and the D -Barn Lease Agreement. The major elements of this global resolution include the following components: 1. The construction of the pedestrian link has been removed as a Developer's responsibility under the terms of the minimum improvements of Phase I. The EDA will have the sole and absolute discretion on the design, location, schedule and construction of the link. 2. The Developer relinquishes all rights and obligations to develop Phase II and is not entitled to any tax abatements from the Phase II site development. i :Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM • 3. The EDA agrees to provide the Developer with a right of first offer for the Phase H site until July 1, 2011. The EDA maintains sole and absolute discretion to accept, reject or conditionally accept an offer from the Developer. 4. The payment of tax abatements for the Phase I (Embassy Suites Hotel Site) are subject to a right of set off by the City for all payments owing the authority by the Developer as a tenant under the D -Barn Lease Agreement and License Agreement for use of the Pedestrian Link. 5. An Amended and Restated Parking, Access and Pedestrian Link easement Agreement provides the EDA with total discretion on the location and construction of the pedestrian link on the Earle Brown Heritage Center site. The agreement maintains the easement at its original location on the hotel site with minor adjustments to the legal description and replaces the easement on the HRA site with a non - exclusive license agreement. This license agreement identifies pedestrian link costs associated with the ownership, operations oration and maintenance of the these annual pedestrian link; provides a use charge to the Developer of 50 percent of p ,p g P link costs; and includes provisions for the use of the Right of Set -Off and Security Agreement. Additionally, the agreement addresses the common entrance driveway to the Phase R • site and includes similar cost sharing provisions when the site is developed. 6. The First Amendment to the D -Barn Lease provides for the commencement of this ten year lease to occur upon the issuance of an occupancy permit for the completed link; the developer's payment of $72,181, which represents certain lost revenues arising from the adjustment of the commencement of the term of the Lease; and includes provisions for the use of the Right of Set -Off and Security Agreement. 7. The Security Interest Subordination Agreement provides the subordination of any of the agreements to the Right of Set -Off granted by the Developer to the EDA and HRA in the Lease and License. The lender, Hurlbut -Zeppa Charitable Trust AR, consents to the grant by the Developer a security interest in the Tax Abatement payments to the EDA and HRA as collateral security for the Developer's payment obligations under the Lease and License. The attached City Council resolution provides for the approval of the Fourth Amendment to the Development Agreement, the following exhibits to the Development Agreement: a. License Agreement b. Quit Claim Deed and Termination of Development Rights c. Amended and Restated Parking, Access and Pedestrian Link d. First Amendment to the Lease e. Security Interest Subordination Agreement f. Subordination by Prudential Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM and approves the execution of items (e) and (f) referenced above. . Budget Issues: This resolution does not affect the current budget. However, there are a number of financial issues associated with the global resolution to the default of the Development Agreement and D- Barn Lease Agreement: 1. The EDA retains ownership of the Phase H site. (2010 assessed valuation $560,000) 2. The tax abatement and business subsidy agreement for Phase II is terminated. (A potential savings of $350,000+ over the ten year term under the current development agreement providing for a complementary hotel.) 3. The lease agreement for the D -Barn as a salon and spa exceeds the previous office lease by approximately $25,000 a year or approximately $250,000 during the ten year lease. 4. The license agreement provides for a 50 -50 cost participation of the pedestrian link costs which provides a projected annual savings to the Heritage Center of approximately $20,000+ annually. 5. Projections on the cost of constructing the link have been estimated at $960,000 by the architect, which included a 15 percent factor pending finalizing the scope of work ($804,525 which includes the standard 10 percent contingency line item). Council Goals: Strategic: • 1. We will aggressively proceed with implementation of City's redevelopment plans Ongoing: 1. We will move toward maintaining or lowering the level of City property taxes Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust its adoption: Member introduced the following resolution and moved • RESOLUTION NO. RESOLUTION APPROVING A FOURTH AMENDMENT TO A DEVELOPMENT AGREEMENT AND CERTAIN RELATED AGREEMENTS ATTACHED THERETO AS EXHIBITS (LICENSE, DEED, AMENDED EASEMENT, LEASE AMENDMENT AND SUBORDINATION AGREEMENTS) WHEREAS, the Economic Development Authority of Brooklyn Center (the "Authority ") and the City of Brooklyn Center (the "City ") have heretofore entered into a Development Agreement dated October 23, 2006, as amended July 23, 2007, October 8, 2007 and January 17, 2008 (as amended, the "Development Agreement ") between the Authority, the City and Brooklyn Hotel Partners, LLC, a Minnesota limited liability company (the "Developer ") in connection with hotel developments to be constructed by the Developer; and WHEREAS, the Authority, the City and the Developer desire to further amend the Development Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of Brooklyn Center as follows: • 1. The City hereby approves the Fourth Amendment to the Development Agreement in the form on file with the City Clerk, with such changes thereto as may hereafter be approved by the Mayor and/or the City Manager of the City. 2. The City hereby approves all of the exhibits to the Fourth Amendment to the Development Agreement, including without limitation: (a) License Agreement (Exhibit A to Fourth Amendment to the Development Agreement), (b) Quit Claim Deed and Termination of Development Rights (Exhibit B to the Fourth Amendment to the Development Agreement), (c) the Amended and Restated Parking, Access and Pedestrian Link Easement Agreement (Exhibit C to the Fourth Amendment to the Development Agreement), (d) the First Amendment to Lease (Exhibit D to the Fourth Amendment to the Development Agreement), (e) the Security Interest Subordination Agreement (Exhibit E to the Fourth Amendment to the Development Agreement), and RESOLUTION NO. (f) Subordination by The Prudential Insurance Company of America (in substance similar to that subordination given by the Hurlbut - Zeppa Charitable Trust AR (see (e) above), and approves the execution and delivery of items (e) and, if necessary and appropriate, (f) above, in the forms on file with the City Clerk, with such changes thereto as may hereafter be approved by the Mayor and/or City Manager of the City. June 28, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: • p g and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • • FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER CITY OF BROOKLYN CENTER AND BROOKLYN HOTEL PARTNERS, LLC • This document drafted by: BRIGGS AND MORGAN (DGG) Professional Association 2200 IDS Center , 80 South Eighth Street Minneapolis, MN 55402 -2157 2358282v9 • FOURTH AMENDMENT TO DEVELOPMENT AGR EEMENT THIS FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT (this "Fourth Amendment ") made as of the 29 day of June, 2010, by and between the Economic Development Authority of Brooklyn Center, a�body corporate and politic organized and existing kl Center, a Minnesota r City of Brooklyn , Minnesota the "Authority"), y yn under the laws of the State of M ( ty ) municipal corporation (the "City "), and Brooklyn Hotel Partners, LLC, a Minnesota limited liability company (the "Developer "). Unless otherwise expressly provided herein, all capitalized terms shall have the meanings as ascribed in the Development Agreement referred to below. RECITALS: A. The Authority, the City and the Developer have previously entered into a Development Agreement dated as of October 23, 2006, as amended July 23, 2007, October 8, 2007, and January 17, 2008 (as amended, the "Development Agreement "), pursuant to which the Authority and the City agreed to, among other things, contribute land and abate certain taxes to the Developer to assist with certain public redevelopment costs of a project undertaken by the Developer in the City. B. The Developer is currently in default under the Development Agreement by reason of its failure to complete that portion of the Phase I Minimum Improvements known and referred to as the Connection. C. Although not a part of the Development Agreement, the Developer and the • Authority also previously entered into a Lease dated November 2007 (the "Lease Agreement ") for certain retail space in the Authority's Earle Brown Heritage Center facility located adjacent to the Phase I Property. D. The Developer is also currently in default under the Lease Agreement by reason of its failure to pay certain rent. E. The Developer, the Authority and the City now desire to compromise and settle their respective rights and claims under the Development Agreement and the Lease Agreement by amending: (1) the Development Agreement to modify and amend the rights and obligations of the Authority, the City and the Developer as it relates to the Connection and the Phase II Property, (2) the Parking, Access and Pedestrian Link Easement Agreement by and between the Authority, the Housing and Redevelopment Authority in and for the City of Brooklyn Center ( "HRA ") and the Developer dated January 17, 2008 relating to the Development (the "Easement Agreement) to provide for a new location for the Connection which is to be situated on a portion of the Phase I Property, and (3) the Lease Agreement to provide for revised term commencement and termination dates and a revised description of the leased premises; among other amendments and modifications as set forth herein. AGREEMENTS: In consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree as follows: 1 2358282x9 1. The Development Agreement is amended as follows: (a) The last sentence of Section 4.1. and the first sentence of Section 4.12(a) are amended to provide that the Connection is not a part of nor included in the Minimum Improvements to be constructed by the Developer at its cost. (b) All applicable provisions of the Development Agreement, including without limitation Sections 4.1 and 4.12, are amended to provide that: (i) the Authority may, at its option and at its sole expense, construct the Connection in accordance with plans and specifications approved solely by the Authority; and (ii) whether before or after construction of the Connection, alter, modify, relocate or otherwise change the Connection or the plans and specifications therefor, all in the sole and absolute discretion of the Authority. Neither the City nor the Authority nor the HRA shall have any responsibility, obligation or liability to the Developer in the event the Connection is not constructed or such construction is delayed. On the date hereof the HRA and the Developer have executed and delivered a License Agreement relating to the Connection in the form attached hereto as Exhibit A ( "License Agreement "), which License Agreement shall, pursuant to its terms, only be effective upon the receipt by Developer of notice from the Authority that the Connection is completed and open for use, if ever. In the event the Connection (referred to as the "Pedestrian Link" in the License Agreement) is not substantially completed and ready for use, as evidenced by the issuance by the City of Brooklyn Center of a certificate of occupancy for the Pedestrian Link, on or before the ! fifth anniversary of the date of the License Agreement, the License Agreement shall automatically terminate and shall become null and void as provided in Section l of the License Agreement. (c) All applicable provisions of the Development Agreement are amended to provide that the Developer shall have no right or obligation to develop the Phase II Property or construct the Phase II Minimum Improvements of the Development or pay the cost thereof. In confirmation thereof, the Developer has on the date hereof executed and delivered to the Authority the Quit Claim Deed and Termination of Development Rights in the form attached hereto as Exhibit B . (d) Article V is amended to provide that the Developer shall not be entitled to any Tax Abatements for the "Phase II Development Property" or the Phase II Property. Section 4.11(c) is amended to provide that the Developer shall not be required to create any permanent positions for the Phase II Property. (e) The Authority agrees that if it intends to sell or develop the Phase II Property prior to July 1, 2011, it will have the option to first give to the Developer a right of'first offer' on the Phase II Property. Upon delivery of a written notice from the Authority to the Developer of the right of 'first offer', the Developer shall have forty-five (45) days after receipt of such notice (the "Offer Period which offer the Authority may Authority for the purchase of the Phase II Property, accept, reject or conditionally accept in its sole and absolute discretion. In the event the Authority and the Developer have not signed and delivered a final purchase agreement in ! a form acceptable to both the Authority and the Developer prior to the expiration of the 2 2358282v9 purchase and /or to purchase the Phase II • Offer Period, all rights of the Developer to offer p p Property shall automatically expire and terminate. The terms of any proposed purchase offer from the Developer, and any resultant definitive purchase agreement based upon such offer, or otherwise, is subject to acceptance or rejection by the Authority in its sole and absolute discretion, and the Authority shall have no obligation to sell the Phase II Property to the Developer nor to negotiate the sale thereof to the Developer. Nothing herein shall condition or limit the right of the Authority to sell or develop the Phase II Property prior to July 1, 201.1. without giving to the Developer such right of 'first offer', provided that if the Authority sells or develops the Phase II Property prior to July 1, 2011 without giving the Developer a right of'first offer', the deed of conveyance of the Phase II Property shall contain a restriction (or a restriction shall otherwise be recorded) that the Phase II Property may not be used for hotel purposes, which restriction shall automatically expire on July 1, 2011. The Authority shall have no qualification or limitation on its rights to sell or develop the Phase II Property after July 1, 2011 without a right of 'first offer' or option of any type, kind or description whatsoever in favor of the Developer or restriction upon the use of the Phase II Property. (f) The payment of Tax Abatements which may hereafter become owing by the City to the Developer under Section 5.1 for the Phase I Minimum Improvements shall be subject to setoff by the City (for the account of the Authority) for all payments owing to the Authority by the Developer as Tenant under the Lease Agreement and /or as Licensee under the License Agreement. (g) The Developer's address for purposes of Section 12.4 Notices and Demands is hereby changed to: Brooklyn Hotel Partners, LLC c/o Oliver Companies, Inc. 5629 Grand Avenue, Suite 2 Duluth, MN 55807 Attn: Seth Oliver 2. The Easement Agreement is amended and restated as follows: (a) The Easement Agreement is amended and restated pursuant to the Amended and Restated Parking, Access and Pedestrian Link Easement Agreement executed and delivered by the Authority, the HRA and the Developer on the date hereof in the form attached hereto as Exhibit C . 3. The Lease Agreement is amended as follows: (a) The Lease Agreement is amended pursuant to the first amendment executed and delivered by the Authority and the Developer on the date hereof in the form attached hereto as Exhibit D . 4. On the date this Fourth Amendment is executed and delivered by the Authority, the Developer shall deliver to the Authority a Security Interest Subordination Agreement in the form attached hereto as Exhibit E . • 3 2358282v9 5. This Fourth Amendment will be governed and construed in accordance with the laws of the State of Minnesota. 6. Except as herein amended, all other terms and provisions of the Development Agreement shall remain in full force and effect. 7. This Fourth Amendment may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 8. The execution of this Fourth Amendment and the exhibits thereto by the Developer and the delivery thereof to the Authority and /or the City shall not bind or commit the Authority and /or the City to the terms hereof, and this Fourth Amendment and the exhibits hereto shall only be binding upon and constitute the agreement of the Authority and the City at such time as all necessary approvals have been granted by the Authority and the City and this Fourth Amendment and the exhibits hereto are duly executed in accordance with all applicable laws and a fully executed copy thereof is delivered to the Developer. [end of page] • 4 2358282v9 IN WITNESS WHEREOF the Authority, City and the Developer have caused this • Y� Y p Fourth Amendment to Development Agreement to be duly executed in their respective names on or as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER By Its President By Its Executive Director CITY OF BROOKLYN CENTER By Its Mayor By Its City Manager • This is a signature page to the Fourth Amendment to Development Agreement dated June 29, 2010, by and between the Economic Development Authority of Brooklyn Center, City of Brooklyn Center and Brooklyn Hotel Partners, LLC. 5 2358282x9 • BROOKLYN HOTEL PARTNERS, LLC By Its • This is a signature page to the Fourth Amendment to Development Agreement dated June 29, 2010, by and between the Economic Development Authority of Brooklyn Center, City of Brooklyn Center and Brooklyn Hotel Partners, LLC, 6 2358282v9 • EXHIBIT A LICENSE AGREEMENT THIS LICENSE AGREEMENT (this "Agreement "), made as of the 29`" day of June, 2010 by and between The Housing and Redevelopment Authority in and for the City of Brooklyn Center, a body corporate and politic organized and existing under the laws of the State of Minnesota ( "Licensor "), and Brooklyn Hotel Partners, LLC, a Minnesota limited liability company ( "Licensee "). RECITALS: A. Licensor is the owner and /or operator of certain building improvements on real property located in Hennepin County, Minnesota, known and referred to as the Earle Brown Heritage Center, which is legally described on Exhibit "A" attached hereto ( "Center Property"). B. Licensee is the owner of certain improved real property immediately adjacent to the Center Property located in Hennepin County, Minnesota upon which Licensee has constructed a hotel facility, legally described on Exhibit "B" attached hereto ( "Hotel Property"). C. Pursuant to that certain Development Agreement by and between the Economic Development Authority of Brooklyn Center (the "EDA "), the City of Brooklyn Center ( "City ") and Licensee dated October 23, 2006, as amended July 23, 2007, October 8, 2007, January 1.7, 2008 and June 29, 2010 (as amended, the "Development Agreement "), the Licensor and or the • EDA may, but shall not be obligated to, construct an enclosed pedestrian link upon the Center Property and the Hotel Property, which link is referred to as the "Connection" in the Development Agreement, and which is referred to herein as the "Pedestrian Link." D. Licensee has requested, and Licensor has agreed, that Licensee, as the owner of the Hotel Property, be granted a license for itself and its invitees, to use the Pedestrian Link for pedestrian access to and from the Hotel Property to the Earle Brown Heritage Center located on the Center Property, pursuant to the terms, conditions and agreements as set forth herein. AGREEMENTS: In consideration of the foregoing and the agreements herein contained, Licensor hereby grants to Licensee a non - exclusive license to use that portion of the Center Property designated as the 'Licensed Premises' as shown and depicted on Exhibit "C" attached hereto ( "Licensed Premises ") for the purpose of non - exclusive pedestrian access by the owner of the Hotel Property and its business invitees from the Hotel Property to and from the Earle Brown Heritage Center located on the Center Property (the "License "), subject to the following terms, conditions and agreements: 1. Term The term ("Term") of the License herein granted shall commence on the date, if ever, that Licensor gives written notice to Licensee that the Pedestrian Link is substantially complete and open for use. In the event the Pedestrian Link is not substantially completed and ready for use, as evidenced by the issuance by the City of Brooklyn Center of a certificate of occupancy for the Pedestrian Link, on or before the fifth anniversary of the date of A -1 2358282v9 this Agreement, this Agreement shall automatically terminate and shall become null and void. This Agreement shall otherwise terminate on the date of written notice given by Licensor to Licensee that the License is terminated, whether such notice is given before or after the construction of the Pedestrian Link. Neither the Licensor nor the City nor the EDA shall have any responsibility, obligation or liability to the Licensee in the event the Pedestrian Link is not constructed or such construction is delayed. 2. Use Charge During the full Tenn of the License, Licensee shall pay to Licensor an annual use charge equal to fifty percent (50 %) of the annual Pedestrian Link Costs (as hereinafter defined). Licensor shall make a good faith estimate of such annual Pedestrian Link Costs to be due by Licensee for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term, Licensee shall pay to Licensor, monthly in advance an amount equal to the estimated Pedestrian Link Costs for such calendar year or part thereof divided by the number of months therein. From time to time, Licensor may estimate and re- estimate the Pedestrian Link Costs to be due by Licensee and deliver a copy of the estimate or re- estimate to Licensee. Thereafter, the monthly installments of Pedestrian Link Costs payable by Licensee shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question., Licensee shall have paid all of the Pedestrian Link Costs as estimated by Licensor. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual costs are available for each calendar year as herein provided. • 3. Pedestrian Link Costs The term "Pedestrian Link Costs" shall mean all reasonable expenses and disbursements (subject to the limitations set forth below) that Licensor incurs in connection with the ownership, operation, and maintenance of the Pedestrian Link, determined in accordance with sound accounting principles consistently applied, including the following costs: (i) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Pedestrian Link; (ii) cost of all utilities used in the Pedestrian Link; (iii) repairs, replacements, and general maintenance of the Pedestrian Link; (iv) service, maintenance and management contracts with independent contractors for the operation, maintenance, management, repair, replacement, or security of the Pedestrian Link; (v) costs made in order to comply with any applicable laws; (vi) improvements made to the Pedestrian Link to improve the safety of the Pedestrian Link and the health and welfare of its occupants; (vii) cost and premiums for all casualty insurance maintained by Licensor covering the Pedestrian Link and liability insurance in connection therewith, and (viii) reasonable reserves for periodic capital expenditures (e.g. carpet, floor mat, vacuum cleaner, HVAC and roof replacement). Pedestrian Link Costs shall not include costs for: (1) repair, replacements and general maintenance paid by proceeds of insurance or by Licensee or other third parties; (2) interest, amortization or other payments on loans to Licensor; (3) depreciation; (4) the initial construction of the Pedestrian Link; (5) repair, replacement and reconstruction of the Pedestrian Link covered by any and all applicable warranties in connection with or relating to the original construction and installation of the Pedestrian Link; (6) any work, repair, replacement or reconstruction of the Pedestrian Link arising from the intentional wrongful acts of Licensor or Licensee or the misuse or abuse of the Pedestrian Link, the entire cost of which shall be paid by the party whose conduct gives rise to the need for such repair or replacement (without contribution from the other party); or (7) Pedestrian Link Costs that are of a capital nature, provided that such costs shall be amortized using a commercially reasonable interest rate over A -2 2358282v9 the useful . economic life of such improvements as determined by Licensor in its reasonable discretion. By March 1 of each calendar year Licensor shall furnish to Licensee a statement of Pedestrian Link Costs for the previous calendar year (the Cost Statement"). If Licensee's estimated payments of Licensee's one -half of Pedestrian Link Costs for the year covered by the Cost Statem ent exceed Licensee's share of such items as indicated in the Cost Statement, then , Licensor shall promptly credit or reimburse Licensee for such excess; likewise, if Licensee's estimated payments for such year are less than Licensee's share of such items as indicated in the Cost Statement, then Licensee shall promptly pay Licensor such deficiency. Licensee shall also pay to Licensor at the times and in the manner provided herein or, if not so provided, as reasonably required by Licensor, all other amounts payable by Licensee to Licensor under this Agreement. 4. As -Is Licensee accepts the Licensed Premises in. its "as -is" condition without qualification or requirement that Licensor perform any work therein. 5. Easement A reement 'Thee p terms and provisions of that certain Amended and Restated Parking, Access and Pedestrian Link Easement Agreement ent dated of even date herewith executed by the Licensor, the EDA and Licensee, recorded , 2010 as Doc. No. in the office of the Hennepin County Registrar of Titles (the "Easement Agreement ") shall govern matters relating to the repair and maintenance, including casualty repair, of the Licensed Premises and the Pedestrian Link, subject to the provisions of Section 2 • and 3 hereof relating to the payment by Licensee of the annual use charge. 6. Modification to Licensed Premises Notwithstanding anything herein to the contrary, Licensor may from time to time, whether prior to or after construction of the Pedestrian t its sole and absolute discretion, and /or modify Link: (a) alter, or relocate the Pedestrian Link a (b) alter, modify, relocate anal /or adjust the location, area and extent of the Licensed Premises on the Center Property in its sole and absolute discretion, provided that all such alterations, modifications, relocations and adjustments on the Hotel Property shall be made within the area of the easement granted by Licensee to Licensor for the "Pedestrian Link Corridor Area" as set forth in the Easement Agreement. 7. Removal In the event the License herein granted is terminated by Licensor for any reason other than the default by Licensee of its obligations under this Agreement, Licensor shall remove that P ortion of the Pedestrian Link located on the Hotel Property within twelve (12) months of such termination. At all times the Pedestrian Link shall be and remain the property of Licensor and /or the EDA and may be removed at any time. 8. Insurance Licensee shall at its sole cost and expense, maintain liability insurance, with Licensor named as an addition al insured against inst claims for de ath , p ersonal injury, and property damage arising out of, or incidental to, the use by Licensee and its invitees of the Licensed Premises in amounts which are from time to time acceptable p table to Licensor, but in no event less than $2,000,000 for death or injury to one person, $5,000,000 for death or injury to more than one person, and $5,000,000 for property damage, in respect of each occurrence. A -3 2358282v9 Policies for such insurance shall be in a form with an insurer reasonably acceptable to Licensor and shall require at least thirty (30) days written notice to Licensor of termination or material ' ensee shall promptly deliver to Licensor certified copies or other evidence of such ration. Lac Y alteration. P P P the thereon have been aid and that all premiums P policies and evidence satisfactory to Licensor p policies are in full force and effect. In the event the use of the Licensed Premises by Licensee and its invitees or the exercise by Licensee by any rights or privileges herein contained results in an increase to the premiums of insurance maintained by Licensor covering the Center Property, g h Licensee shall immediately upon demand by Licensor pay to Licensor such increased premiums resulting therefrom. 9. Indemnity Licensee shall indemnify and hold Licensor harmless from and against every demand, claim, cause of action, liability, judgment, and expense, and all loss or damage arising from, or incidental to, the use or occupancy of the Licensed Premises by the owner of the Hotel Property and /or its invitees or the exercise of any right or privilege herein contained or the failure to perform any of the terms, conditions or agreements hereof. 10. Eminent Domain If all or any part of the Licensed Premises or any interests or rights granted, created or arising under this License are taken for any public use under any statute or by right of eminent domain, or purchased under threat of such taking, this Agreement shall automatically terminate on the date of such taking. Any compensation or award paid or payable on account of any such taking shall be the sole and exclusive property of, and belong to, Licensor. • 11. Access Access by Licensee, its agents, employees and contractors shall be s Licensor may and regulations a Y s and subject to such rules g n those days, � during those hours and o Y , g make from time to time for the use, operation and maintenance of the Licensed Premises and the Center Property. Licensee shall observe all such rules and regulations and cause its invitees regulations. using the Pedestrian Link to also observe all such rules and re g 12. Notices Any notice from one party to the other hereunder shall be in writing and shall be deemed duly served if mailed by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: To Licensor: The Housing and Redevelopment Authority in and for the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 -2199 Attn: Executive Director To Licensee: Brooklyn Hotel Partners, LLC c/o Oliver Companies, Inc. 5629 Grand Avenue, Suite 2 Duluth, Minnesota 55807 Attn: Seth Oliver Either party shall have the right to designate by notice, a different address to which notices are to be mailed. A -4 2358282x9 13. Default If (a) Licensee shall default in the payment of any charge or performance of any obligation under this Agreement and such default is not cured within 10 days after notice by Licensor thereof, or (b) if any proceeding is commenced by or against Licensee for the purpose of subjecting the assets of Licensee to any law relating to bankruptcy or insolvency or for an appointment of a receiver for the business, property, affairs, or revenues of Licensee, or (c) if Licensee makes a general assignment of Licensee's assets for the benefit of creditors, then, and in any such event, Licensor may, at its option, without further notice to Licensee or demand by Licensor, in addition to all other rights and remedies provided at law or in equity, terminate this Agreement and all rights, privileges, and licenses granted or created hereunder. 14. Right of Set -off and Security Agreement (a) In addition to all other remedies available to Licensor as'provided in this Agreement, upon a default by Licensee of any of Licensee's payment obligations to Licensor under this Agreement (whether the payment of use charges or otherwise), Licensor may (and notwithstanding any other provision of this Agreement to the contrary), without notice to Licensee, cause the City to set -off the amount of such delinquent payment (for the account of Licensor) against amounts which are or may become due and owing by the City to Licensee as "Tax Abatements" as described in and pursuant to the Development Agreement. (b) In order to secure the prompt payment and performance of all obligations of Licensee to Licensor under this Agreement now or hereafter arising, including without • limitation, all indebtedness, liabilities, and obligations of Licensee of every kind, nature and description under this Agreement. Licensee hereby grants to Licensor a security interest in all of Licensee's rights in and to the Tax Abatements as described in the Development Agreement ( "Collateral "). The address of the Licensor, as secured pasty, is 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 -2199, Attn: Executive Director. The Licensee will defend the Collateral against all claims or demands of all persons (other than the Licensor) claiming the Collateral or any interest therein. The Licensee will not change its state of registration unless the Licensor has been given at least 30 days prior written notice thereof and the Licensee has executed and delivered to the Licensor such Financing Statements and other instruments required or appropriate to continue the perfection of the Licensoe's security interest. The Licensee agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that the Licensor may reasonably request, in order to perfect and protect the security interest granted or purported to be granted hereby or to enable the Licensor to exercise and enforce its rights and remedies hereunder with respect to any Collateral. The Licensee hereby authorizes the Licensor to file one or more Financing Statements or continuation statements in respect thereof, and amendments thereto, relating to all or any part of the Collateral without the further consent of the Licensee where permitted by law. At any time after the occurrence of any default under this Agreement, until such default is cured to the satisfaction of the Licensor, the Licensor may (but need not), in the Licensor's name or in A -5 2358282v4 • Licensee's name., execute and deliver proofs of claim, receive all such monies, endorse checks and other instruments representing payment of such monies, and adjust, litigate, compromise or release any claim against the issuer of any such policy. Upon the occurrence of a default under this Agreement and at any time thereafter until the default is cured to the reasonable satisfaction of the Licensor, the Licensor may exercise and enforce any and all rights and remedies available upon default to a secured party under the Uniform Commercial Code. Upon the occurrence of such a default and at any time thereafter until the default is cured to the reasonable satisfaction of the Licensor, the Licensor may notify any person obligated on any Collateral that the same have been assigned or transferred to the Licensor and that the same should be performed as requested by, or paid directly to, the Licensor, as the case may be. The Licensee shall join in giving such notice, if the Licensor so requests. 15. Costs Licensee shall indemnify Licensor against all costs and charges (including legal fees) lawfully and reasonably incurred in enforcing any covenant or agreement of Licensee hereunder or in enforcing any payment of any charges or in obtaining possession of the Licensed Premises after default of Licensee. 16. Right to Perform If Licensee shall fail to perform any covenant or agreement hereunder, Licensor shall have the right, but not the obligation, to perfonn the same and charge the cost thereof to Licensee, which charge shall bear interest at the rate equal to the lesser of 1.50 percent per month or the maximum rate permitted by applicable law. 17. No Interest in Real Estate No Encumbrances. Nothing contained in this Agreement shall be deemed to create an interest or estate in the Licensed Premises or the Center Property in favor of Licensee (including, without limitation, any leasehold interest, equitable interest or right, purchase right, easement, lien, contract right or other interest), and the only right of Licensee shall be that of a temporary licensee. Licensee shall not mortgage, encumber, hypothecate or create any lien, claim or charge against the Licensed Premises or the Center Property, and any such attempt to do so shall be automatically null and void. 18. Assignment Licensee may not assign, pledge or otherwise transfer or dispose of this Agreement or any rights, privileges, or licenses granted hereunder, it being understood that this Agreement is a personal privilege to Licensee only. Licensor may transfer or assign, whether by operation of law or otherwise, this Agreement or any rights or interest hereunder and upon any such transfer or assignment Licensor shall be relieved of any and all obligations hereunder. 19. Entire Agreement This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, except as provided in the Development Agreement and /or the Easement Agreement. No amendment, modification, or supplement hereto shall be valid or binding unless set out in writing and executed by the parties hereto. 20. Successors Bound Except as otherwise provided herein, the covenants, terms, and conditions contained herein shall apply to and bind the successors and assigns of the parties hereto. A -6 2358282v9 The parties hereto have caused this Agreement to be executed and delivered as of the day • and year first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER By Its Chairman By Its Executive Director BROOKLYN HOTEL PARTNERS, LLC By Its A -7 2358282x9 Exhibit "A" (Center Property Legal Description) Tracts D and F, Registered Land Survey No. 1594, Hennepin County, Minnesota. • A -8 2358282v9 Exhibit "B" • (Hotel Property Legal Description) Lot l., Block 1, Brooklyn Farm 2 nd Addition, according to the plat thereof on file and of record in the office of the Hennepin County Registrar of Titles, Minnesota. • A -9 2358282v9 • Exhibit "C" (Licensed Premises) The "Licensed Premises" is that area designated as the 'Pedestrian Link Corridor Area' on the HRA Tract as depicted below. --� CD n Y zo m :6 m Tt • ° R � ( Y f » > [b: I Lrr ,r�r�rrnrl - uTrm 4 �r a 9 4 I i I C i 2358282v9 EXHIBIT B • QUIT CLAIM DEED AND TERMINATION OF DEVELOPMENT RIGHTS Corporation Partnership or Limited Liability Company to Corporation, Partnership or Limited Liability Compan No delinquent taxes and transfer entered; Certificate of Real Estate Value ( ) filed ( ) not required Certificate of Real Estate Value No. County Auditor By Deputy STATE DEED TAX DUE HEREON: $1.65 Date: June 29, 2010 (Reserved for recording data) FOR VALUABLE CONSIDERATION, Brooklyn Hotel Partners, LLC, a Minnesota limited liability company ( "Grantor "), hereby conveys and quitclaims to Economic Development • Authority of Brooklyn Center, a body corporate and politic organized and existing under the laws of the State of Minnesota ( "Grantee "), the real property in Hennepin County, Minnesota, described as follows: Lot 2, Block 1, Brooklyn Farm 2nd Addition, according to the recorded plat thereof on file and of record with office of the Registrar of Titles in and for Hennepin County, Minnesota, together with all hereditaments and appurtenances belonging thereto ( "Property "). Grantor's delivery of this Quit Claim Deed and Termination of Development Rights and the conveyance of title herein is made for the express purpose of relinquishing and conveying to Grantee any and all interest of Grantor in and to the Property, including, without limitation, all existing and future interests of Grantor in and to the Property under that certain Development Agreement by and among Grantor, Grantee and City of Brooklyn Center, a Minnesota municipal corporation, dated October 23, 2006, as amended July 23, 2007, October 8, 2007, January 17, 2008 and June 29, 2010. The Grantor does not know of any wells located on the described real property. The consideration given for this conveyance is less than $500. I B -1 2358282v9 Brooklyn Hotel Partners, LLC By: Its: STATE OF MINNESOTA ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this o day of June, Brooklyn 0 10, by the l Partners, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Briggs and Morgan, Professional Association (DGG) 2200 IDS Center 80 South Eighth Street Minneapolis, MN 55402 B -2 2358282x9 EXHIBIT C AMENDED AND RESTATED PARKING, ACCESS AND PEDESTRIAN LINK EASEMENT AGREEMENT This Agreement (this "Agreement ") is entered into by ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, a Minnesota public body corporate and politic ("EDA"), THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, a Minnesota public body corporate and politic ( "HRA"), and BROOKLYN HOTEL PARTNERS, LLC, a Minnesota limited liability company ( "Developer "), as of June 29, 2010 (the "Execution Date "). RECITALS: A. HRA is the owner of certain land located in Henne in Count Minnesota which is improved and o erated by the EDA as the Earle Brown Heritage Center a conference and event center B. Develo er is the owner of certain land in Henne in Count Minnesota located immediately ad to the Earle Brown Heritage Center which it reviousl ac uired from the E DA and which it has developed and now operates as a hotel facility C. EDA is the owner of certain unim roved land in Henne in Count Minnesota located im mediat el y southerly of and adjacent to the hotel facility property owne b Develo er which . property is also t o be developed at a future date for such purp as ma be a roved b the City of Brooklyn Center and EDA D. In order to pro vide for and facilitate the common use an operatio of their respective p roperties, HRA EDA and Develo er have reviousl - entered into a certain Parkin Access and Pedestrian Link Easement A eement dated Janu 17 2008 which A eement was recorded in the office of the Hennepin Co IpV Re istrar of Titles on Jullum v 23 2008 as Document No. 4464042 (the "Easement Agreemen ). E. HRA EDA a nd the Developer now wish to amend and restate th Easement Agreement in its entiret ursuant to and in accordance with the terms hereof. AGREEMENT: HRA, EDA and Developer agree as follows: 1. Definitions ] .1. Center The "Center" shall mean the Earle Brown Heritage Center and the two adjacent properties legally described as: Tracts D and F, Registered Land Survey No. 1594, Hennepin County, Minnesota, and C -1 2358282x9 • Lots 1 and 2, Block 1, Brooklyn Farm 2 "d Addition, according to the plat thereof on file and of record in the office of the Hennepin County Registrar of Titles, Minnesota. 1.2. City The "City" shall mean the City of Brooklyn Center, a Minnesota municipal corporation. 1.3. Conference Facility The "Conference Facility" shall mean the buildings and improvements comprising the Earle Brown Heritage Center located on the HRA Tract. 1.4. Developer Tract The "Developer Tract" shall mean the property which is legally described as: Lot 1, Block 1, Brooklyn Farm 2 "d Addition, according to the plat thereof on file and of record in the office of the Hennepin County Registrar of Titles, Minnesota. The boundaries of the Developer Tract are outlined and labeled "Developer Tract" on the Site Plan. On the Execution Date the Owner of the Developer Tract is Developer. 1.5. Development Agreement The "Development Agreement" shall mean that certain • Development Agreement dated October 23, 2006, as amended July 23, 2007, October 8, 2007, January 17, 2008 and June 29, 2010, . by and between EDA, City and Developer relating to the acquisition and development of the Hotel Facility, as the same may be amended, supplemented and extended from time to time. 1.6. Driveway/Parking Area The "Driveway/Parking Area" shall mean the Parking Lot Area, the Shared Driveway Area — Developer/HRA and the Shared Driveway Area — Developer/EDA. 1.7. Easement Agreement The, "Easement Agreement" shall have the meaning as ascribed in paragraph D of the Recitals to this Agreement. 1.8. EDA Tract The "EDA Tract" shall mean the property which is legally described as: Lot 2, Block 1, Brooklyn Farm 2 " Addition, according to the plat thereof on file and of record in the office of the Hennepin County Registrar of Titles, Minnesota. The boundaries of the EDA Tract are outlined and labeled "EDA Tract" on the Site Plan. On the Execution Date the Owner of the EDA Tract is EDA. 1.9. Facility or Facilities A "Facility" or "Facilities" shall mean the Conference Facility and /or the Hotel Facility. • C -2 2358282v9 1.10. Hotel Facility The " Hotel Facility" shall mean the building and improvements of • the hotel constructed and located by Developer on the Developer Tract in accordance with and pursuant to the terms of the Development Agreement. 1.11. HRA Tract The "HRA Tract" shall mean the property which is legally described as: Tracts D and F, Registered Land Survey No. 1594, Hennepin County, Minnesota. The boundaries of the HRA Tract are'outlined and labeled "HRA Tract" on the Site Plan. On the Execution Date the Owner of the HRA Tract is HRA. 1.12. License Agreement "License Agreement shall mean any license agreement, occupancy agreement or other right or permission granted from time to time by the Owner of the HRA Tract in favor of a Person for the right to use the Pedestrian Link. 1.13. Occupant "Occupant" shall mean any Person from time to time entitled to the use and occupancy of any portion of the land or a building in the Center under an ownership right or any lease, sublease, license, concession, or other similar agreement. 1.14. Owner "Owner" shall mean each signatory hereto and, after compliance with the notice requirements set forth below, their respective successors and assigns who become owners of any portion of the Center. An Owner transferring all or any portion of its interest in the Center shall give notice to all other Owners of such transfer and shall include in such notice at least the following information: (a) the name and address of the transferee, and (b) a copy of the legal description of the portion of the Center transferred. No such transfer shall affect the existence, priority, validity or enforceability of any lien created under this Agreement or which is recorded against the transferred portion of the Center prior to receipt of the notice. Until such notice requirement is complied with, the transferring Owner shall (for the purpose of this Agreement only) be the transferee's agent. Each Owner shall be liable for the performance of all covenants, obligations and undertakings set forth in this Agreement with respect to the portion of the Center owned by it which accrue during the period of such ownership, and such liability shall continue with respect to any portion transferred until the notice requirement set forth in this Section is complied with, at which time the transferring Owner's liability for future obligations shall terminate with respect to the portion transferred. The transferee Owner shall automatically become liable for all obligations, performance requirements and amounts which arise subsequent to compliance with the notice requirement. 1.15. Parkins Lot Area The "Parking Lot Area" shall mean the portions of the HRA Tract designated "Parking Lot Area" on the Site Plan. • C -3 2358282v9 1.16. Pedestrian Link The "Pedestrian Link" shall mean the enclosed one - story, ground level, climate controlled structure which may be installed and constructed by EDA, at its election, on the HRA Tract and the Developer Tract in accordance with and pursuant to the terms of the Development Agreement and providing a pedestrian access corridor between the Conference Facility and the Hotel Facility (such Pedestrian Link being referred to as the "Connection" in the Development Agreement). 1.17. Pedestrian Link Corridor Area The "Pedestrian Link Corridor Area" shall mean the portions of the HRA Tract and the Developer Tract on which is located the Pedestrian Link and designated "Pedestrian Link Corridor Area" on the Site Plan, subject to such changes thereof as may be made by the Owner of the HRA Tract in accordance with Section 4.2 hereof. The portion of the Pedestrian Link Corridor Area located on the Developer Tract is legally described on Exhibit B . 1.18. Permittee " Permittee" shall mean all Occupants and the officers, directors, employees, agents, contractors, customers, vendors, suppliers, visitors, invitees, licensees, subtenants, and concessionaires of Occupants insofar as their activities relate to the intended use of the Center. Among others, Persons engaging in any of the following activities will not be considered to be Permittees: 1. 18.1 Exhibiting any placard, signs or notice. . 1. 18.2 Distributing any circular, handbill, placard, or booklet. 1. 18.3 Soliciting memberships or contributions. 1. 18.4 Parading, picketing, or demonstrating. 1. 18.5 Failing to follow regulations relating to the use of the Center. 1.19. Person "Person" shall mean any individual, partnership, firm, association, corporation, trust, or any other form of business or government entity. 1.20. Shared Driveway Area — Developer/E The "Shared Driveway Area — Developer/EDA" shall mean the portion of the Developer Tract designated "Shared Driveway Area — Developer/EDA." on the Site Plan and legally described on Exhibit C 1.21. Shared Driveway Area — Developer/F A. The "Shared Driveway Area — Developer/HRA shall mean the portion of the Developer Tract designated "Shared Driveway Area — Developer /HRA" on the Site Plan and legally described on Exhibit D 1.22. Site Plan The "Site Plan" shall mean the site plan which is attached to this Agreement as Exhibit A . 1.23. Tract "Tract" shall mean any portion of the Center owned by an Owner. C -4 2358282v9 • 2. Term This Agreement shall be effective as of the Execution Date and shall continue in full force and effect until 11:59 p.m. on the date which is 30 years after the Execution Date; provided, however, that this Agreement, and all restrictions and covenants contained in this Agreement, shall be automatically extended on a year to year basis following such date which is 30 years after the Execution Date unless any Owner notifies all other Owners, by notice given at least 4 months prior to the end of any year, that it exercises its option to prevent this Agreement from being so extended; and provided further that, whether or not this Agreement is so extended, the easements referred to in Section 3 shall continue in force and effect in perpetuity as provided in Section 3, except as otherwise specifically provided in subsections 3.1, 3.4 and 4.6. Upon expiration of this Agreement, all rights and privileges derived from and all duties and obligations created and imposed by the provisions of this Agreement, except as relates to the easements mentioned above, shall terminate and have no further force or effect; provided, however, that the expiration of this Agreement shall not limit or affect any remedy at law or in equity that an Owner may have against any other Owner with respect to any liability or obligation arising or to be performed under this Agreement prior to the date of such expiration. 3. Easements 3.1. Parkin . The Owner of the HRA Tract, for itself and its successors and assigns, hereby grants and conveys to the Owner of the Developer Tract for its use and for the use of its Permittees, in common with others entitled to use the same, a . perpetual, non - exclusive easement for the parking of 45 vehicles and the passage of vehicles and pedestrians over and across the Parking Lot Area of the HRA Tract. Such easement rights shall be subject to the following reservations and agreements as well as other provisions contained in this Agreement: 3.1.1 The Owner of the HRA Tract may at any time make changes to, close off, and /or construct buildings and improvements on, all or any portion of the Parking Lot Area without the approval of any other Owner, so long as such change, closing or construction does not unreasonably interfere with any of the other easements granted herein, and further provided that all of the following conditions are met: 3.1.1.1 No g overnmental rule, ordinance or regulation shall be violated as a result of such action, and such action shall not result in the Owner of the Developer Tract bung in violatio n of any governmental rule, ordinance or regulation. 3.1.1.2 The number of remaining parking spaces on the HRA Tract, or otherwise available to the Owner of the HRA Tract, shall be at least equal to the number of parking spaces required for the HRA Tract by applicable zoning and building ordinances, plus 45 additional parking spaces. C -5 2358282v9 3.1.1.3 No change shall be made in the access point to Earl Brown Drive located at the Northwest corner of the Parking Lot Area. 3.1.1.4 At least 30 days prior to making any such substantial change, modification or alteration, the Owner of the HRA Tract shall deliver to the Owner of the Developer Tract copies of the plans therefor. 3.1.2 The Owner of the HRA Tract reserves the right to close off any portion of the Parking Lot Area for such reasonable period of time as may be necessary to make needed repairs or as may be legally necessary, in the opinion of such Owner's counsel, to prevent the acquisition of prescriptive rights by anyone; provided however, that prior to closing off any portion of the Parking Lot Area materially and adversely affecting parking on the Developer Tract, the Owner of the HRA Tract shall give written notice to the Owner of the Developer Tract of its intention to do so, and shall attempt to coordinate such closing with the Owner of the Developer Tract so that no unreasonable interference shall occur. 3.1.3 The Owner of the HRA Tract reserves the right at any time and from time to time to exclude and restrain any Person who is not a Permittee from using the Parking Lot Area. • 3.1.4 No Permittee shall be charged for the right to use the Parking Lot Area, except pursuant to a lease or other agreement entered into between the Owner of the HRA Tract and a Permittee. 3.1.5 Parking in the Parking Lot Area by Permittees of the Owner of the Developer Tract shall be limited to automobiles, motorcycles and pickup trucks; no semitrailers, recreational vehicles, boats, trailers or large trucks will be permitted to park in the Parking Lot Area; there shall be no overnight parking, except that overnight parking shall be permitted on the HRA Tract by Permittees of the Owner of the HRA Tract. 3.1.6 The Owner of the Developer Tract shall use good faith, commercially reasonable efforts to require that all employees of its Occupants park on the Developer Tract and not in the Parking Lot Area. 3.1.7 The Owner of the Developer Tract shall pay its proportionate share of the costs of repairs, maintenance and replacement of the Parking Lot Area as provided in Section 6.5. 3.1.8 The Owner of the HRA Tract reserves the right to limit and designate, from time to time, which of the 45 parking spaces in the Parking Lot Area are available for parking by Permittees of the Owner of the Developer Tract, including the installation of signage deemed necessary or desirable by the Owner of the HRA Tract. C -6 2358282v9 er Tract, for • 3.2. Driveway Easement — Developer/HRA The Owner of the Developer itself and its successors and assigns, hereby grants and conveys to the Owner of the HRA Tract for its use and the use of its Permittees, in common with others entitled to use the same, a perpetual, non - exclusive easement for the passage of vehicles and pedestrians over and across the Shared Driveway Area — Developer/HRA. Such easement rights shall be subject to the following reservations and agreements as wells as other provisions contained in this Agreement. 3.2.1 The Owner of the Developer Tract may make minor changes and improvements to the Shared Driveway Area — Developer/HRA without the approval of the Owner of the HRA Tract, so long as such change or improvement does not unreasonably interfere with any of the easements granted in Section 3.2, and further provided that all of the following conditions are met: 3.2.1.1 The accessibility of the Shared Driveway Area — Developer/HRA is not unreasonably restricted or hindered. 3.2.1.2 No governmental rule, ordinance or regulation shall be violated as a result of such action, and such action shall not result in the Owner of the HRA Tract being in violation of any governmental rule, ordinance or regulation. 3.2.1.3 At least 30 days prior to making any change, modification or alteration to the Shared Driveway Area — Developer/HRA, the Owner of the Developer Tract shall deliver to the Owner of the HRA Tract copies of the plans therefor. 3.2.2 The Owner of the Developer Tract reserves the right to close off any portion of the Shared Driveway Area — Developer/HRA for such reasonable period of time as may be necessary to make needed repairs or as may be legally necessary, in the opinion of such Owner's counsel, to prevent the acquisition of prescriptive rights by anyone; provided however, that prior to closing off any portion of the Shared Driveway Area — Developer/HRA, the Owner of the Developer Tract shall give written notice to the Owner of the HRA Tract of its intention to do so, and shall attempt to coordinate such closing with the Owner of the HRA Tract so that no unreasonable interference shall occur. 3.3. Driveway Easement — Developer/EDA The Owner of the Developer Tract, for itself and its successors and assigns, hereby grants and conveys to the Owner of the EDA Tract for its use and the use of its Permittees, in common with others entitled to use the same, a perpetual, non - exclusive easement for the passage of vehicles and pedestrians over and across the Shared Driveway Area — Developer/EDA. Such easement rights shall be subject to the following C -7 2358282x9 reservations and agreements as well as other provisions contained in this Agreement. 3.3.1 The Owner of the Developer Tract may make minor changes and improvements to the Shared Driveway Area — Developer/EDA without the approval of the Owner of the EDA Tract, so long as such change or improvement does not unreasonably interfere with any of the easements granted in Section 3.3, and further provided that all of the following conditions are met: 3.3.1.1 The accessibility of the Shared Driveway Area — Developer/EDA is not unreasonably restricted or hindered. 3.3.1.2 No governmental rule, ordinance or regulation shall be violated as a result of such action, and such action shall not result in the Owner of the EDA Tract being in violation of any governmental rule, ordinance or regulation. 3.3.1.3 At least 30 days prior to making any change, modification or alteration to the Shared Driveway Area — Developer/EDA, the Owner of the Developer Tract shall deliver to the Owner of the EDA Tract copies of the plans therefor. 3.3.1.4 The Owner of the EDA Tract shall pay its share of the costs of repairs, maintenance and replacement of the Shared Driveway Area — Developer/EDA as provided in Section 6.1.1. 3.3.2 The Owner of the Developer Tract reserves the right to close off any portion of the Shared Driveway Area — Developer/EDA for such reasonable period of time as may be necessary to make needed repairs or as may be legally necessary, in the opinion o f such owner's counsel, to provided prevent the acquisition of prescriptive rights by anyone; p however, that prior to closing off any portion of the Shared Driveway Area — Developer/EDA, the Owner o f the Developer Tract shall g ive written notice to the Owner of the EDA Tract of its intention to do so, and shall attempt to coordinate such closing with the Owner of the EDA Tract so that no unreasonable interference shall occur. 3.4. Pedestrian Link The Owne of the conveys Developer Tract, for to theOwner of thitself HRA Tract for its use hereby Y and assigns, y g r and the use of its Permittees, in common with others entitled to use the same, a perpetual, non - exclusive easement for the passage of pedestrians over and across that portion of the Pedestrian Link Corridor Area located on the Developer Tract, as legally described on Exhibit B, which portion of the Pedestrian Link on the Developer Tract shall be used only as a pedestrian walkway. Such easement rights shall be subject to the terms, agreements and provisions contained in this Agreement. In the event the Owner of the HRA Tract does not substantially • C -8 2358282v9 Link within five ears of the Execution complete construction of the Pedestrian Y Date, the easements granted in Sections 3.4, 3.5 and 3.6 hereof shall expire and terminate upon one hundred twenty days' prior written notice given by the Owner .of the Developer Tract to the Owner of the HRA Tract following the expiration of such five year period. 3.5. Access for Construction Developer, for itself, its successors and assigns, hereby grants and conveys to the Owner of the HRA Tract, a perpetual, non - exclusive access easement over and across such portions of the Developer Tract as is reasonably necessary for the Owner of the HRA Tract (or EDA, as its designee) to construct and /or reconstruct the Pedestrian Link in accordance with and pursuant to the terms of the Development Agreement. 3.6. G eneral Access for Operation Maintenance Repairs and Removal Developer, for itself and its successors and assigns, hereby grants and conve to the Owner of the HRA Tract a perpetual, non - exclusive easement over the Developer Tract for the purposes of access to the Pedestrian Link and the operation, repair, maintenance and removal of any of the Pedestrian Link improvements which are located on the Developer Tract. 3.7. Access to Certain Buildings Developer, for itself and its successors and assigns, hereby grants and conveys to the Owner of the HRA Tract a perpetual, non - exclusive easement over any portion of the Developer Tract which is located within 10 feet of a building on the HRA Tract, if any, for the purpose of access to • and repairing and /or maintaining the exterior of such building (including, without limitation, the Pedestrian Link); however, the existence of this easement shall not prohibit or restrict Developer from constructing buildings, structures or other improvements within such 10 foot area in accordance with all applicable codes and laws, in which case the HRA's easement shall not apply to the extent such 10 foot area is occupied by a building, above -grade structure or other improvement. 3.8. Restriction No Owner shall grant any utility easement for the benefit of any property not within the Center; provided however, that the foregoing shall not prohibit the granting or dedicating of utility easements by an Owner on its Tract to governmental or quasi - governmental authorities or to public utilities; and provided further, that any Owner may grant a private utility easement to any Person so long as (a) the area of such easement is confined to the granting Owner's Tract and (b) such easement does not include any connection to any common utility lines. 4. Pedestrian Link 4.1. Design. In the event the EDA elects to construct or reconstruct the Pedestrian Link, the same shall be designed and constructed in accordance with and pursuant to the plans and specifications approved by EDA and /or the City in their sole and absolute discretion. • C -9 2358282x9 • 4.2. Modifications The Owner of the HRA Tract may make any changes, modifications or alterations to the Pedestrian Link as it deems necessary or desirable, provided however that once the Pedestrian Link is constructed no change shall be made by the Owner of the HRA Tract in the access doorway location between the Pedestrian Link and the Hotel Facility without the consent of the Owner of the Developer Tract. Such changes, modifications or alterations of the Pedestrian Link by the Owner of the HRA Tract may iriclude, without limitation the alteration modification or relocation of the Pedestrian Link and /or Pedestrian Link Corridor Area. No change, modification or alteration in the Pedestrian Link or the location of the Pedestrian Link Corridor Area may be made by Developer without the prior approval of the Owner of the HRA Tract, which approval may be granted or withheld in the sole and absolute discretion of the Owner of the HRA Tract. The Owner of the Developer Tract shall have the right, subject to all applicable laws and the easements and agreements described in this Agreement, to design and construct or expand existing structures on its Tract (other than the Pedestrian Link), provided, however, that any structure so constructed or expanded shall not be located in the Pedestrian Link Corridor Area, and at a minimum, any such structure so constructed or expanded shall allow for the repair, maintenance and operation of the Pedestrian Link as contemplated hereby. In the event that the Owner of the Developer Tract constructs or expands such a structure on its Tract with the approval of the Owner of the HRA Tract which necessitates an alteration in a previously constructed portion of the expense of the Pedestrian Link, any Pedestrian Link alteration shall be solely the ex p t Owner of the Developer Tract. 4.3. Certain Operations The Owner of the HRA Tract shall be responsible for locking and unlocking all doors located in the Pedestrian Link. Such doors shall be locked at such times as HRA deems appropriate in its sole discretion. The Pedestrian Link shall have passage doors into the Hotel Facility. Said doors shall remain closed (other than to allow passage of pedestrians, or in the event of emergencies) to avoid interference with efficient and proper operation of the heating, ventilating and air conditioning systems located within and /or serving the Pedestrian Link. The Owner of the HRA Tract shall be responsible for security in the portion of the Pedestrian Link located on its Tract. In the event the Owner of the HRA Tract grants one or more License Agreements, the use of the Pedestrian Link by the Permittee (licensee) thereof shall be subject to the terms, provisions and conditions of the applicable License Agreement, as well as such rules, PP g regulations and restrictions for the use thereof as the Owner of the HRA Tract may from time to time, in its sole and absolute discretion, determine. The Owner of the HRA Tract reserves the right at any time and from time to time to exclude and restrain any Person who is not a Permittee authorized by the Owner of the HRA Tract to use the Pedestrian Link from using the Pedestrian Link Corridor Area or any portion thereof. 4.4. Utilities Any and all utilities and services, including electricity, heating, ventilation and air conditioning, and the equipment necessary for providing the • same to the Pedestrian Link shall be installed and provided by the Owner of the C -10 2358282x9 • HRA Tract. The Owner of the HRA Tract shall operate, m aintain and repair all utilities, services and systems serving the Pedestrian Link, as well as all equipment used to monitor such utilities, services and systems, if any, and the air shall be d re p maintenance an p aid by the Owner of the operation, mai costs of such op , HRA Tract. 4.5. Ownership At all times title to the Pedestrian Link shall vest in the Owner of the HRA Tract, its successors and assigns, or at such Owner's election, the EDA. 4.6. Casualty. In the event the Pedestrian Link or any part thereof is destroyed or partially destroyed by fire or any other casualty or occurrence, the Pedestrian Link red b the owner er of the HRA Tract, at its sole election may be repaired and restored Y and without obligation to so repair or restore the same, p rovided however, in the event such Owner elects not to repair and restore damaged or destroyed improvements located in that portion of the Pedestrian Link which connects the Hotel Facility and the building known and referred to as "Building D" on the HRA Tract, and such damage or destruction prevents pedestrian access in said portion of the Pedestrian Link, then, such portion of the Pedestrian Link located on the Developer Tract shall be removed by the Owner of the HRA Tract from the Developer Tract within twelve (12) months of the occurrence of such destruction. Notwithstanding the foregoing sentence, in the event that either of the Facilities are destroyed or partially destroyed by fire or other casualty or occurrence and the Owner thereof does not rebuild or restore such Facility as provided in subsection 7.2 (c) (the non - rebuilding Owner "), the non - rebuilding Owner shall also • perform the same work [including removal of the Pedestrian Link (or such portion thereof as the Owner of the affected Tract the other Owners Facility restoration] on the Tract of the other Owner and restore complete architectural unit at the non- rebuilding Owner's sole cost and expense. The Pedestrian Link Corridor Area easement on ta t al destruction shall the terminate only in the event of the demolition or subs Conference Facility or the Hotel Facility, provided, however, that if an Owner intends to replace its Facility nd the same is rebuilt within two years of any such Y • demolition or destruction, the easement over the Pedestrian. Link Con i dor A rea on the Developer Tract created herein shall remain in full force and effect. The rebuilding or restoring Owner shall pay all construction and restoration costs related to (a) disconnecting the Pedestrian Link from any Facility to be demolished, (b) supporting and securing of the Pedestrian Link during demolition and/or restoration of the replacement Facility, (c) repair or replacement of all Pedestrian. Link components damaged by the demolition of a portion of the Pedestrian Link or the damaged Facility, and (d) repair and connection of the Pedestrian Link to the replacement Facility. The Pedestrian Link shall be supported and maintained in good and condition ion of a replacement Facn has not been commenced within two (2) to the replacement Facility or restoration. If construct years from the date of demolition or destruction, the easement granted herein over the Pedestrian Link Corridor Area on the Developer Tract shall terminate on the second anniversary of the • C -11 2358282v9 demolition or destruction unless otherwise agreed to by the Owners of the HRA Tract and the Developer Tract. 4.7. License Agreement Notwithstanding anything herein to the contrary, the Owner of the HRA Tract may, pursuant to a License Agreement, provide that certain costs and expenses herein described relating to the Pedestrian Link be paid by a Permittee (licensee) pursuant to the License Agreement. 5. Demolition and Construction 5.1. General Requirements Each Owner agrees that all demolition and construction activities performed by it within the Center shall be performed in compliance with all laws, rules, regulations, orders, and ordinances of the city, county, state, and federal governments, or any department or agency of any of them, affecting improvements constructed within the Center. Each Owner further agrees that neither its demolition nor its construction activities shall do any of the following: 5.1.1 Unreasonably interfere with demolition or construction work being performed on any other part of the Center. 5.1.2 Unreasonably interfere with the use, occupancy or enjoyment of any part of the remainder of the Center by any other Owner or its Permittees. . 5.1.3 Cause any other Owner to be in violation of any law, rule, regulation, order or ordinance applicable to its Tract of the city, county, state, federal government, or any department or agency of any of them. 5.2. Pedestrian Link Construction In the event the EDA elects to construct or reconstruct the Pedestrian Link, the EDA shall be responsible for the construction of the Pedestrian Link in accordance with and pursuant to the terms of the Development Agreement. 5.3. Indemnity Each Owner agrees to defend, indemnify and hold harmless each other Owner from all claims, actions, proceedings and costs incurred in connection therewith (including reasonable attorneys' fees and costs of suit) resulting from any personal injury, death or property damage whatsoever occurring to any Person or to the property of any Person arising out of or resulting from the performance of any demolition and/or construction activities performed or authorized by such indemnifying Owner, except to the extent claims in respect thereto are waived or released herein. The indemnification contained in this subsection 5.3 shall not include an indemnity for any consequential damages. 6. Maintenance and Repair 6.1. General Responsibility for Maintenance 6.1.1 Except as maybe expressly provided otherwise in this Section 6, each Owner shall repair and maintain all of the portions of the C -1.2 2358282v9 • Parking/Driveway Area located on its Tract. Such maintenance shall include keeping, and each Owner hereby covenants and agrees to keep, all of the portions of the Parking/Driveway Area located on its Tract fully illuminated each day from dusk until dawn, 7 days a week. All repairs and maintenance to be performed by an Owner pursuant to this subsection shall be performed at such Owner's sole expense, except as may be expressly provided otherwise in this Agreement. Notwithstanding the foregoing to the contrary, at such time as the Owner of the EDA Tract has completed the development of the same by the construction of building improvements on the EDA Tract, and the Owner thereof commences use of the Shared Driveway Area — Developer/EDA, the Owner of the EDA Tract shall reimburse the Owner of the Developer Tract one -half the cost of maintenance and repair of the said Shared Driveway Area — Developer/EDA, thereafter arising. In the event the cost reimbursement described in the preceding sentence is applicable, the reimbursement payments shall be made by the Owner of the EDA Tract within 20 days of submission by the Owner of the Developer Tract of a statement therefor, accompanied by a reasonable detail and explanation of such costs and expenses, including copies of bills, contracts and statements, and an itemization of all the charges of the Owner of the Developer Tract for use of its own employees. Failure by the Owner of the EDA Tract to make timely payment shall result in a lien in favor of the Owner of the Developer Tract on the EDA Tract in the same manner and pursuant to the • same provisions as provided in Section 14 hereof for cure of a default. 6.1.2 The Owner of the HRA Tract shall repair and maintain the Pedestrian Link, if constructed, in good order, condition and repair, provided that the costs and expenses of the operation, maintenance, repair and replacement of the Pedestrian Link may be shared in accordance with and pursuant to any applicable License Agreement entered into by the Owner of the HRA Tract. 6.2. Standards for Maintenance The minimum standard of maintenance for the Parking/Driveway Area and the Pedestrian Link (if constructed) shall be comparable to the standard of maintenance followed in first -class retail developments of comparable size in the Minneapolis /St. Paul metropolitan area, and in any event in compliance with all applicable governmental laws, rules, regulations, orders and ordinances, and the provisions of this Agreement. The Parking/Driveway Area improvements shall be repaired or replaced with materials at least equal to the original quality of the materials being repaired or replaced. The maintenance and repair obligation for the Parking/Driveway Area in any event shall include but not be limited to the following: 6.2.1 Road Driveway and Access Areas Maintaining all paved surfaces and curbs in a smooth and evenly covered condition which maintenance work shall include cleaning, sweeping, restriping, repairing, resurfacing and overlays. C -13 2358282x9 6.2.2 Debris and refuse Periodic removal of all papers, debris, filth, refuse, ice and snow to the extent necessary to keep the Parking /Driveway Area in a first -class, clean and orderly condition. 6.23 Sian and markers Placing, keeping in repair, replacing and repainting any appropriate directional signs or markers. 6.2.4 Lighting Operating, keeping in repair, cleaning and replacing when necessary any lighting facilities. 6.3. Payment for Negligence Notwithstanding the provisions of subsection 6.1 (entitled "General Responsibility for Maintenance "), but subject to the provisions of subsection 9.4 (entitled "Waiver of Subrogation "), in the event any Parking/Driveway Area or the Pedestrian Link (if constructed) is damaged or destroyed as a result of the negligence or willful misconduct by an Owner or its contractors, agents, servants, or employees, the Owner who (or whose contractors, agents, servants, or employees) caused such damage or destruction shall reimburse the Owner who is responsible for the repair thereof for the reasonable cost of the repair of such damage or destruction. 6.4. General Easement Repair Provisions In addition to any other provisions of this Agreement, any Owner entering another Owner's Tract to perform maintenance or repair pursuant to this Agreement shall comply with the following: (a) any such • maintenance and repair shall be performed in such a manner as to cause as little disturbance in the use of the Tract where the repairs and maintenance are being performed as is practicable under the circumstances; (b) the Owner performing such repair and maintenance shall promptly pay all costs and expenses associated with any such repair and maintenance, subject to any provisions for reimbursement which may be expressly contained in this Agreement; (c) the Owner performing such repair and maintenance shall diligently complete such work as quickly as possible; and (d) the Owner performing such repair and maintenance shall promptly clean and restore the affected portion of the easement area to a condition equal to or better than the condition which existed prior to the commencement of such work. 6.5. Costs of Parking Lot Area Maintenance The Owner of the Developer Tract shall pay to the Owner of the HRA Tract its "proportionate share" of the reasonable costs and expenses incurred by the Owner of the HRA Tract for the operation, maintenance and repair (including replacement) of the Parking Lot Area. For purposes of this Section 6.5, the "proportionate share" of the Owner of the Developer Tract, shall be a fraction, the numerator of which is 45 and denominator of which is the total number of parking spaces existing from time to time in the Parking Lot Area. Such payment shall be made by the Owner of the Developer Tract within 20 days of submission by the Owner of the HRA Tract of a statement therefor, accompanied by a reasonable detail and explanation of such costs and expenses, including copies of bills, contracts and statements, and an itemization of all the charges of the Owner of the HRA Tract for use of its own • C -14 2358282v9 e Developer employees. Failure by the Owner of Tract to make timely payment p shall result in a lien in favor of the Owner of the HRA Tract on the Developer Tract in the same manner and pursuant to the same provisions as provided in Section 14 hereof for cure of a default. 7. Building Improvements 7.1. Standards of Maintenance After completion of construction, each Owner covenants and agrees to maintain and keep the building improvements, if any, located on its Tract in good condition and state of repair, in compliance with all governmental laws, rules, regulations, orders, and ordinances exercising jurisdiction thereover. 7.2. Casualt . In the event any of the building improvements are damaged by fire or other casualty (whether insured or not), or if a building on a Tract is being torn down or demolished the Owner upon whose Tract such building improvements are located immediately shall remove the debris resulting from such event and provide a sightly barrier and within a reasonable time thereafter shall either (a) repair or restore the building improvements so damaged or demolished, or (b) erect other building improvements or improvements in such location, or (c) demolish the damaged portion of such building improvements, remove all debris, and restore the area to an attractive condition. Such Owner shall have the option to choose which of the foregoing alternatives to perform, but such Owner shall be obligated to perform one of such alternatives. • 8. [Intentionally Omitted] 9. Insurance 9.1. Liability Insurance Each Owner shall maintain or cause to be maintained in full force and effect with respect to its Tract Commercial General Liability Insurance in the amount of at least $1,000,000 per occurrence, $2,000,000 aggregate for bodily or personal injury or death and for property damage, and umbrella liability in the amount of $5,000,000. Such insurance shall include a provision for severability of interests. 9.2. Casualty Insurance The Owner of the HRA Tract shall be responsible for maintaining casualty insurance coverage for the Pedestrian Link, if constructed. 9.3. Indemnity Subject to the provisions of subsection 9.4 (entitled "Waiver of Subrogation "), each Owner ( "Indemnitor ") covenants and agrees to indemnify, defend and hold harmless each other Owner (Indemnitee' ) from and against all claims, costs, expenses y and liability including reasonable attorneys' fees and cost of suit incurred in connection with all claims) arising from or as a result of the injury to or death of any Person, or damage to the property of any Person, which shall be caused by the negligence or willful act of such Indemnitor or its contractors, agents, servants, or employees. . C -1.5 2358282v9 9.4. Waiver of Subrop-ation Notwithstanding anything to the contrary contained in this Agreement, each Owner (the "Releasing Owner ") hereby releases and waives for itself and on behalf of its insurer, any other Owner (the "Released Owner ") from any liability for any loss or damage to all property of such Releasing Owner located upon any portion of the Center, which loss or damage is of the type generally covered by property insurance provided under the Comprehensive Replacement Cost Form, irrespective either of any negligence on the part of the Released Owner which may have contributed to or caused such loss, or of the amount of such insurance required or actually carried. Each Owner agrees to use its best efforts to obtain, if needed, appropriate endorsements to its po licies of insurance with respect to the foregoing release; provided, however, that failure to obtain such endorsements shall not affect any r elease given p ursuant to this subsection. 9.5. General Requirements The insurance required by this Section shall specifically extend to contractual obligations of the insured party arising out of the indemnification obligations set forth in this Agreement. Such insurance may be carried under a blanket policy or policies which includes other liabilities, properties and locations of such Owner. All insurance required by this Section shall be procured from financially responsible insurance companies licensed to do business in the state of Minnesota. • 10. Taxes and Assessments Each Owner shall be responsible for paying all taxes and assessments relating to its Tract improvements located thereon and an personal property owned or the buildings and improv Y leased by such Owner in the Center. 11. Liens In the event any mechanic's lien is filed against the Tract of one Owner as a result of services performed or materials furnished for the use of another Owner, the Owner for whose benefit such services were performed or materials were furnished agrees to cause such lien to be discharged prior to entry of final judgment (after all appeals) for the foreclosure of such lien and further agrees to indemnify, defend, and hold harmless the other Owner and its Tract against liability, loss, damage, costs or expenses (including reasonable attorneys' fees and cost of suit) on account of such claim of lien. Upon request such lien of the Owner whose Tract is subject to s , the Owner for whose benefit such J services were performed or materials were furnished agrees to cause such lien to be released and discharged of record within 14 days after the filing of such lien, either by paying the indebtedness which gave rise to such lien or by posting bond or other security as shall be required by law to obtain such release and discharge; if the Owner for whose benefit such services were performed or materials were furnished fails to obtain such release and discharge within such 14 day period, the Owner of the Tract against which such lien was recorded may cause such lien to be released and discharged of record, either by paying the indebtedness which gave rise to such lien or by posting bond or other e in which case s shall be required fired b , security a q y law to obtain such release and discharg • C -1.6 2358282x9 es were • the Owner for whose benefit such services performed or materials were furnished p shall immediately upon demand reimburse the Owner of such Tract for all costs and expenses incurred in connection with obtaining such release and discharge. Nothing in this Agreement shall prevent an Owner for whose benefit such services were performed or materials were furnished from contesting the validity of such lien in any manner such Owner chooses so long as such contest is pursued with reasonable diligence. In the event such contest is determined adversely (allowing for appeal to the highest appellate court), such Owner shall promptly pay in full the required amount, together with any interest, penalties, costs, or other charges necessary to release such lien. Notwithstanding anything herein to the contrary, the cost of the initial construction of the Pedestrian Link, and any liens resulting therefrom, shall be fully paid by Developer as provided in the Development Agreement. Notwithstanding any provision of this Agreement to the contrary, Developer shall indemnify, defend and hold harmless HRA and the HRA Tract from all mechanics' liens, claims, actions, proceedings and costs incurred in connection therewith (including reasonable attorneys' fees and costs of suit) resulting from the construction and installation of the Pedestrian Link, and any warranty work performed by or under Developer, on the HRA Tract. 12. Con_ sents Unless expressly provided otherwise in this Agreement, whenever consent is required in this Agreement, such consent shall not be unreasonably withheld or delayed. Unless provision is made for a specific time period, consent shall be given or withheld within 30 days of the receipt of the request for consent. If a notice that consent will be refused is • not given within the required time period, the requested Owner shall be deemed to have given its consent. If an Owner shall refuse consent, the reasons therefor shall be stated. Except with respect to a consent given by lapse of time, all consents and refusals to consent shall be in writing. Any right to consent contained in this Agreement shall be Tract to which such right Owner owning the ht relates. Any purchaser of any g held b the O g Y Tract in the Center shall automatically acquire any right to consent at such time as such purchaser becomes an Owner, unless the selling Owner (a) conveys less than all of its ownership interest in the Center and (b) provides in writing, either in the deed conveying a portion of its ownership interest in the Center or in another agreement executed by the selling Owner and recorded in the Hennepin County Registrar of Title's office prior to or simultaneously with such deed, that such selling Owner retains the right or rights of consent described in such instrument. Until a purchaser becomes an Owner, and only to the extent the selling Owner does not so retain any right to consent, all rights to consent associated with such Tract shall remain with the selling Owner and its heirs, successors and assigns with respect to the non - conveyed portion of the Tract. 13. Condemnation In the event any portion of the Center shall be condemned, the award shall be paid to the Owner owning the land or the improvement taken, except that (a) if the taking includes improvements belonging to more than one Owner, such as utility lines, the portion of the award allocable thereto shall be used to relocate, replace or restore such jointly owned improvements to a useful condition, and (b) if the taking includes easement rights which C -17 2358282v9 • are intended to extend beyond the term of this Agreement, the portion of the award allocable to each such easement right shall be paid to the respective grantee of such easement. In addition to the foregoing, if a separate claim can be filed for the taking of any other property interest existing pursuant to this Agreement which does not reduce or diminish the amount paid to the Owner owning the land or the improvement taken, then the owner of such other property interest shall have the right to seek an award for the taking of such interest. Notwithstanding the foregoing to the contrary, any award for the taking of the Pedestrian Link or any portion thereof, if constructed, irrespective of who owns the land on which the taken Pedestrian Link or portion thereof is located, shall be the sole and exclusive property of the Owner of the HRA Tract. 14. Default 14.1. Force Majeure The time within which any Owner to this Agreement is required to perform any act shall be extended to the extent that performance of such act is delayed by Force Majeure, but only if such delay was beyond that Owner's reasonable control and was not caused by its fault or negligence. "Force Majeure" shall mean acts of god, fire, abnormal weather, explosion, riot, war, labor disputes, governmental restrictions, inability to obtain necessary materials, or any other cause beyond such Owner's reasonable control. If a delay of performance occurs and such delay is excusable under this provision, the period for performance shall be extended for a time equal to the time lost because of the Force Majeure, but only if the Owner entitled to such extension give, prompt notice to all other Owners of the occurrence causing the delay and if the Owner so excused acts in good faith and uses due diligence to perform. The inability to obtain financing or lack of money shall not constitute Force Majeure. 14.2. Notice; Cure If any Owner fails to comply with any provision of this Agreement (the "Defaulting Owner "), then any other Owner (the "Non- Defaulting Owner ") may upon 30 days' prior written notice to the Defaulting Owner, proceed to cure the default (and shall have a license to do so) by the payment of money or performance of some other action for the account of the Defaulting Owner. The foregoing right to cure shall not be exercised if within the 30 day notice period (a) the Defaulting Owner cures the default, or (b) if the default is curable, but cannot reasonably be cured within that time period, the Defaulting Owner begins to cure such default within such time period and diligently pursues such cure to completion.. The 30 day notice period shall not be required if, using reasonable judgment, the Non - Defaulting Owner deems that an emergency exists which requires immediate attention. In the event of such an emergency, the Non - Defaulting Owner shall give whatever notice to the Defaulting Owner as is reasonable under the circumstances. The Defaulting Owner hereby grants to the Non- Defaulting Owner a nonexclusive easement over, across and under any and all parts of the Defaulting Owner's Tract for all purposes reasonably necessary to enable the Non - Defaulting Owner (or its agents, contractors or subcontractors) to perform any of the terms, provisions, covenants or conditions of this Agreement that the Defaulting Owner is obligated to perform but has failed to perform after . notice and the opportunity to cure pursuant to this subsection. C -18 2358282x9 of Costs to Cure• Lien Within 10 days after written demand • 14.3. Reimbursement _ Y (including providing copies of invoices reflecting costs) the Defaulting Owner shall reimburse the Non - Defaulting Owner for any amount reasonably spent by the Non - Defaulting Owner to cure the default, together with interest on such amount. The Non - Defaulting Owner shall have a lien upon the Defaulting Owner's right, title, and interest in and to any portion of the Defaulting Owner's Tract to secure payment of all amounts due to the Non - Defaulting Owner under this subsection. The Non - Defaulting Owner shall have the right, but not the obligation, to record its lien, but at all times its lien pursuant to this subsection shall be subject and subordinate to (a) the lien of any mortgage or deed of trust held by any institutional lender, or any extension, renewal, modification or refinancing thereof, on the Defaulting Owner's Tract; (b) the leasehold estate created by any lease of all or any part of the Defaulting Owner's Tract; (c) any other lien of record against the Defaulting Owner's Tract as of the date that the Non- Defaultin g Owner's lien is recorded. The Defaulting Owner shall execute such instruments and documents as the Non - Defaulting Owner may reasonably request to permit the recordation of such lien. The Non - Defaulting Owner shall have the right to foreclose such lien in the manner provided by laws of the State of Minnesota governing mechanics liens. 14.4. Estoppel Each Owner shall, within 15 days after written request from another Owner (but not more often than twice in any 12 month period), execute and deliver to the requesting party an estoppel letter certifying whether or not the certifying Owner has filed any liens, as provided in subsection 14.3, against any , Tract, and whether or not any other Owner is delinquent in any payments required to be made to the certifying Owner pursuant to this Agreement. 14.5. Interest Wherever and as often as one Owner shall not have paid any sum payable hereunder to another Owner within five days of the due date, such delinquent Owner shall pay interest on such amount from the due date, through and including the date such payment is received by the Owner entitled thereto, at the lesser of the following: (a) the highest rate permitted by law to be paid on such type of obligation by the Owner obligated to make such payment; or (b) three percent per annum in excess of the interest rate from time to time publicly announced by U.S. Bank National Association ( "U.S. Bank "), a national banking association having its main offices in Minneapolis, Minnesota, or its successor, as its reference rate (the "Reference Rate "), even though U.S. Bank, or its successor, may lend funds to its customers at interest rates that are at, above, or below the Reference Rate. 14.6. Minimization of Damages In all situations arising out of this Agreement, all Owners shall attempt to avoid and minimize the damages resulting from the conduct of any other Owner. Each Owner shall take all reasonable measures to effectuate the provisions of this Agreement. 14.7. Agreement Shall Continue Notwithstanding Breach It is expressly agreed that no breach of this Agreement shall (a) entitle any Owner to cancel, rescind, or • C -1.9 2358282x9 otherwise terminate this Agreement, or (b) defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value as to any part of the Center; however, such limitation shall not affect in any manner any other rights or remedies which an Owner may have under this Agreement by reason of any such breach. 15. Notices All notices given under this Agreement shall be in writing and shall be sent postage prepaid by either (a) United States certified mail, return receipt requested, or (b) for delivery on the next business day with a nationally - recognized express courier. All such notices shall be sent to the following addresses, until such addresses are changed by 30 days' notice: To EDA: Economic Development Authority of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 -2199 Attn: Executive Director To HRA: The Housing and Redevelopment Authority in and for the City of Brooklyn Center 6301 Shingle Creek Parkway • Brooklyn Center, Minnesota 55430 -2199 Attn: Executive Director To Developer: Brooklyn Hotel Partners, LLC c/o Oliver Companies, Inc. 5629 Grand Avenue, Suite 2 Duluth, Minnesota 55807 Attn: Seth Oliver Notices shall be deemed given as of the date such notice is postmarked, if sent by certified mail, or is placed with an express courier, if sent by express courier. If the last day for giving any notice or taking any action required or permitted under this Agreement would otherwise fall on a Saturday, Sunday, or legal holiday, that last day shall be postponed until the next legal business day. 16. Miscellaneous 16.1. Liability Limitation Notwithstanding any provisions of this Agreement to the contrary, including without limitation the indemnifications and agreements described in subsections 5.3, 6.3 and 9.3, and the requirements for insurance as described in Section 9, the liability of HRA and EDA under this Agreement shall be limited as provided in Chapter 466 of Minnesota Statutes in effect from time to time, and nothing contained in this Agreement shall be deemed to constitute a waiver of such limitations or an agreement by HRA or EDA to its increase or r amend its limited liability as described in such statutes. C -20 2358282v9 All easements • 16.2. Confirmation of Easements A ranted under this Agreement shall g exist by virtue of this Agreement, without the necessity of confirmation by any other document. Upon the request of any Owner, each other Owner will sign and acknowledge a document memorializing the existence (including the legal description, location and any conditions), or the termination (in whole or in part), or the release (in whole or in part), as the case may be and to the extent applicable, of any easement. 16.3. Negation of Partnership None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the Owners in their respective businesses or otherwise, nor shall it cause them to be considered joint venturers or members of any joint enterprise. Each Owner shall be considered a separate arate Owner, and no Owner shall have the right to act as an agent for another Owner, unless expressly authorized to do so in this Agreement or by separate written instrument signed by the Owner to be charged. 16.4. Not a Public Dedication Nothing contained in this Agreement shall be deemed to be a gift or dedication of any portion of the Center, or of any Tract, or of any general Y public P ublic use or portion of the Center or any Tract, to the g p or for an purpose whatsoever. 16.5. Entire Agreement: Enforceability This Agreement, including any Recitals and any attached Exhibits, all of which are made a part of this Agreement, and the concerning he entire agreement of the wne Development Agreement contains t h O rs concer g • this subject matter. This Agreement should be read carefully because only those terms in writing in this Agreement ree ment are enforceable. No other terms or oral promises which are not in this Agreement may be legally enforced, and no promises, projections, inducements or representations made before the Execution Date will change the terms of this Agreement or be binding on any Owner. No promises or other terms shall be implied in this Agreement. If there is a conflict between the terms of this Agreement and the Development Agreement, the terms of the Agreement will control. 16.6. Amendments. Except as provided otherwise in this Section, this Agreement may only be amended by a written agreement signed by all of the then current Owners, except that a provision of this Agreement which only affects specific Tracts may be amended by a written agreement signed by all of the then current Owners of the affected Tracts. Any amendment of this Agreement shall be effective only when recorded in the county and state where the Center is located. No consent to the amendment of this Agreement shall ever be required of any Occupant or Person other t han the Owners whose consent is required pursuant to the provisions of this Section, nor shall any Occupant or Person other than the Owners whose consent is required pursuant to the provisions of this Section have any right to enforce any of the provisions of this Agreement. 16.7. Bind in iciaries This Agreement shall both bind fef ct: No Third Owner Benef g a E and benefit the parties to this Agreement and their respective heirs, personal C -21 2358282v9 • representatives, successors and assigns who become Owners. The Owners do not intend that there be any third party or other beneficiaries of this Agreement. The easements, covenants, agreements, conditions, terms, obligations, limitations and undertakings in this Agreement shall be construed as covenants running with the land. This Agreement is not intended to supersede, modify, amend, or otherwise change the provisions of any prior instrument affecting the Center. 16.8. Waivers: Consents An Owner shall not be deemed to have made a waiver or consent under this Agreement unless it does so in writing, and the mere failure of an Owner to act to enforce any provision of this Agreement shall not be considered a waiver or consent and shall not prevent that Owner from enforcing any provision of this Agreement in the future. Any waiver or consent under this Agreement shall apply only to the matter expressly waived or consented to, and shall not be deemed to be a waiver of or consent to any subsequent breach or of any other provision of this Agreement. 16.9. Time of the Essence Time is of the essence with respect to all matters provided in This Agreement. 16.10. Severability The invalidity or unenforceability of one provision of this Agreement will not affect the validity or enforceability of the other provisions. 16.11. Captions The section numbers and captions are inserted only as a matter of • convenience, and do not in any way define, limit, or describe the scope or intent of this Agreement. Any references in this Agreement to a Section or subsection shall refer to such Section or subsection of this Agreement, unless expressly provided otherwise. 16.12. Interpretation of "including" and "day " . Wherever the word "including" is used in this Agreement, or in any recital or exhibit to this Agreement, it shall mean "including without Limitation." Wherever the word "day[s]" is used in this Agreement, or in any recital or exhibit to this Agreement, and the word "business" does not appear immediately before such word, such word shall mean "calendar day[s]." 16.13. Counterparts This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. 17. No Offer The submission of this Agreement for examination and negotiation does not constitute an offer to enter into an agreement, and this Agreement shall not be binding on any party until it is executed and delivered by each party to this Agreement. • C -22 2358282v9 18. Amendment and Restatement As of the Execution Date, this Agreement amends and restates in its entirety the Easement Agreement, and each of the parties hereto hereby releases, terminates and extinguishes all of the easements described in the Easement Agreement except to the extent such easements are regranted and restated in this Agreement. To the extent any such easements are so released, terminated and extinguished, this Agreement shall constitute a transfer and conveyance by the benefited owner of such released, terminated and extinguished easements to the Owner of land on which such released, terminated and extinguished easements are located. [end of page] • C -23 2358282v9 EDA, HRA and Developer have signed this Agreement below as of the Execution Date. EDA ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER By: Its: President And By: Its: Executive Director ! C -24 2358282v9 I i HRA THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER By: Its: Chairman And By: Its: Executive Director C -25 2358282v9 • DEVELOPER BROOKLYN HOTEL PARTNERS, LLC By: Its: • C -26 2358282v9 • ACKNOWLEDGEMENTS STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) This instrument was acknowledged before me on June _, 2010, by Tim Willson, the President, and Cornelius L. Boganey, the Executive Director, of the Economic Development Authority of Brooklyn Center, a Minnesota public body corporate and politic, on behalf of the body. Notary Public STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) This instrument was acknowledged before me on June _, 2010, by Titre Willson, the Chairman, and Cornelius L. Boganey, the Executive Director, of The Housing and Economic Development Authority in and for the City of Brooklyn Center, a Minnesota public body corporate and politic, on behalf of the body. Notary Public • STATE OF MINNESOTA ) )ss. COUNTY OF ) This instrument was acknowledged before me on June _, 2010, by , the of Brooklyn Hotel Partners, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public My Commission Expires: This Instrument was Drafted By: Briggs and Morgan, P.A. 2200 IDS Center 80 South 8 Street Minneapolis, MN 55402 -2157 • C -27 2358282x9 EXHlBrr A SITE PLAN! � . ...__.._ _.... _._______._._— .....� � -- �Y�Z•— kiL-> i- g- y. y�.,,_' SM-- YK—% M- 1(v:�Y._. #— Z-- #...- #..— Z —.R —y ^.S —Y_.._ , i - � f ( ' y PARaW LOT AREA U €3EVLER T iAGT tll � 1 LOT i SL= i ° .. . L BROOKLYN FARtt 2ND AD D17tON o t �fF.RED ORIVEWAI` ARcK �j ` + p�c�i:AtHRA ! t rr �� - L of co EQA TRACT � ' N LOT 2. BLOCK 2 - } BROOKLYN FARM ZND A0O1104. -.. ___ L. -. W 5} {pR31 OR AY ARtiA ! PORFION PF PE OES RIAN LINK t OFlIOORAFWA ON OC'LLOM. 4AC7 ......111 PEDESTRIAN —� 1 K CORRIDOR A -k � ifiACF F stts rAalt I RLS 1594 sxRr!! cRl ; 1 Ct11' Of I RRPOKtYN t17tFER i .... ..._..... - ... ...... ........_ ...... .. ..........._ .. ............ ._..._.... . ... ....._.. . ............. ... .......... . N I N 00 N M N II Exhibit B (Pedestrian Link Corridor Area located on Developer Tract — Legal Description) An easement for pedestrian walkway purposes over and across that part of Lot 1, Block 1, BROOKLYN FARM 2ND ADDITION according to the recorded plat thereof, Hennepin County, Minnesota described as follows: Commencing at the northeast comer of said Lot 1, Block 1; thence on an assumed bearing of South 01 degree 23 minutes 22 seconds West, a distance of 209.50 feet to a southeast corner of said Lot 1, Block 1; thence North 87 degrees 14 minutes 38 seconds West, along a south line of said Lot 1, Block 1, a distance of 60.1.6 feet to the point of beginning of the area to be described; thence continuing North 87 degrees 14 minutes 38 seconds West, along a south line of said Lot 1, Block l., a distance of 10.00 feet; thence North 02 degrees 42 minutes 56 seconds East a distance of 12.00 feet; thence South 87 degrees 17 minutes 04 seconds East, a distance of 10.00 feet; thence South 02 degrees 42 minutes 56 seconds West a distance of 12.01 feet to the point of beginning of the area described. The location of said easement is depicted and referred to as the 'Pedestrian Link Corridor Easement' on page B -2. C -29 2358282v9 SURVEY LEGEND - EXISTING CONDI I10NS F m CA',CH B;. 114 STORM 5 uit &� ..N i ! :. ..<k I u Earl o vn enter „, ,........ -:: .. �. —..; . u :Ac. :lAhhl' ".L� GO LC -- ;x..R_ . CU ' . ckn vdk�.. s SICN CONCRETE r 11lik� .. '• .....�_"'_''- - -.`-• C- .riAWARY MANHOLE [- � CQNCRFTf R S'O7 �L;:VA ?I 4 ..: >. ._.... ._._.x._.__,._. x. I f••.._...� Q VtATcR MAYt'CLE \ 71'� `CONTOUR 8.axrmt'm:n ., - `f • t7 ELEFNOmk FEfiESiAL _. ....., ,,, r 'I •9 z vG A', Al.VE. "� t 4iY0! a.di G E 4 :<>,,, a J ,L FOwER FOL[ 4 _ c:r,,dewo:In(<wK �' Ea77/.3H35,}j '. r/7;. FFF FIt:SHE:r F:.0 :�R kztaATi:;N C' ! 0 POST ItaDICATOR VALVE N spored E mrve t � � � yr . i g & n Ris C ly ine .0 __t 1 � i f _ ._...._.. —... N t i o • ". ., a - _M....�.a`vi ..._,__...' --d -•- N87'1# 3d'W cX7:.36- �"" 1 - m�__- :n- ..+.m..::..�. - - �..� : :� : 7'adesuian x „/ a i Link Corridor � I Vrc U - Egg ' f ', � � � • • q� w C �.� a'e"�s .. �` ° use I � ,.�....ru"``� r / f 1 p� _ � �� � a h � zero 1 "6/'F".� . -'i -r^�E� ..__ ,j EtE _.._ . C,C - Cl[ __� t � , a ' , . - / • �•&+ f � E �R`_y:° — a p /t, t - l UuliL+if n lA� �• < NOR'I'II Bearings are hosed on RLS No. 1594 cnd - ga the Flat of BROOKLYN ' +, bSS• , FA.4M 2ND ADu4Tt0N . .� • � � ,��' 8 r;chrrrolk: The Fnished Fluor Or—.— j levm m on. Of It'a Ebassy Suites 3�ading awtoLon ® 849.9 Feet a ,�_�• . a € s.ity Ootum }, As Shown Hereon - Easement Er.F.iEX fp 20 40 , , peieniun LinkCmkk' A.. fq;�.SS SCALE IN FEET N M N is • Exhibit C (Shared Driveway Area — Developer/EDA Legal Description) An easement for access purposes over and across that part of Lot 1, Block 1, BROOKLYN FARM 2ND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota described as follows: Beginning at the southwest corner of said Lot 1, Block 1; thence east along the south line of said Lot 1, Block 1, a distance of 310.00 feet; thence north at right angles to the south line of said Lot 1, a distance of 25.00 feet; thence west, parallel with the south line of said Lot 1 to the westerly line of said Lot 1; thence southerly along said westerly line to the point of beginning of the easement described. • i C -31 2358282x9 Exhibit D (Shared Driveway Area — Developer/HRA Legal Description) An casement for access purposes over and across that part of Lot 1, Block 1, BROOKLYN FARM 2ND ADDITION, according to the recorded plats thereof, Hennepin County, Minnesota described as follows: t the northeast corner of said Lot 1 Beginning a , Block 1; thence west along the north line of said Lot 1, Block 1, a distance of 13.00 feet; thence south, parallel with the east line of said Lot 1, Block 1, a distance of 209.50 feet, to the south line of said Lot 1, Block 1; thence east along the south line of said Lot 1, Block 1, a distance of 13.00 feet to the Southeast corner of said Block 1.; thence north along the east line of said Lot 1, Block 1 to the point of beginning of the easement described. • s C -32 2358282v9 Lender Consent The undersigned, The Prudential Insurance Company of America, a New Jersey corporation, as the holder and owner of the mortgagee's interest in and to that certain Mortgage, Assignment of Leases and Rents, and Financing Statement, recorded on January 23, 2008 in the office of the Hennepin County Registrar of Titles as Document Nos. 4464044, 4464045 and 4464046, respectively (collectively, the "Mortgage "), hereby consents to the execution, delivery and recording of the Amended and Restated Parking, Access and Pedestrian Link Easement Agreement attached hereto (the "Easement Agreement "), and hereby agrees that all of its interests in and to the real property described in the Mortgage is and shall be subject to the terms and provisions of the Easement Agreement and the easements described therein. The Prudential Insurance Company of America By: Its: • State of ) ss. County of ) On , 2010, before me, a notary public in and for said County and State, appeared , the of The Prudential Insurance Company of America, a New Jersey corporation, who executed the foregoing on behalf of said bank and who acknowledged to me that he /she signed the same for the purposes therein stated. Notary Public My commission expires: C -33 2358282v9 EXHIBIT D FIRST AMENDMENT TO LEASE This First Amendment to Lease (this "Amendment ") is made and entered into as of June 29, 2010, by and between Economic Development Authority of Brooklyn Center, a body corporate and politic organized and existing under the laws of the State of Minnesota ( "Landlord "), and Brooklyn Hotel Partners, LLC, a Minnesota limited liability company ( "Tenant "). Recitals: A. Landlord, as Landlord, and Tenant, as Tenant, entered into a certain Lease dated November, 2007 (the "Lease "), which Lease covers approximately 4,100 square feet of premises located in Building D of the Earle Brown Heritage Center in Brooklyn Center, Minnesota. B. Landlord and Tenant desire to amend the Lease to provide for a definitive commencement and expiration date for the term of the Lease and to revise the description of the leased premises, and to provide for a payment by Tenant to Landlord to reimburse Landlord for • certain lost revenues. Agreements: In consideration of the foregoing premises, the mutual covenants and promises hereinafter set forth, and other good and valuable consideration, Landlord and Tenant hereby agree as follows: 1. Recitals; Defined Terms The foregoing recitals are true and correct and are incorporated herein by reference. Capitalized terms not defined in this Amendment shall have the same meaning ascribed to such terms in the Lease. 2. Lease Date The date of the Lease is hereby confirmed to be November 1, 2007. 3. Demised Premises The Demised Premises is hereby amended to describe and include only a portion of the building known as 'Building D," more specifically identified on Exhibit A attached hereto, consisting of approximately 3,265 square feet and located within the complex known as the Earle Brown Heritage Center ( "Center "). 4. Term Commencement Date The Term Commencement Date shall be the date as established pursuant to Section 5 of this Amendment. 5. Section 2.2 — Term Commencement;. Term Termination The term of the Lease shall commence on the first day of the calendar month following written notice from Landlord to Tenant that the 'Pedestrian Link" is substantially completed and ready for use, as • D -1 2358282v9 evidenced by the issuance by the City of Brooklyn Center of a certificate of occupancy therefor. • The Lease shall expire ten (10) years after such first day of the calendar month following such notice, subject to extension as provided in Section 2.3 of the Lease (the " Term Expiration Date "), unless sooner terminated as provided in the Lease. For purposes hereof, "Pedestrian Link" shall mean and refer to that certain pedestrian link referred to as the "Connection" in that certain Development Agreement by and between Landlord, the City of Brooklyn Center and Tenant dated October 23, 2006, as amended. In the event the Pedes trian Link is not substantially completed and ready for use, as evidenced by the issuance by the City of Brooklyn Center of a certificate of occupancy therefor, on or before the fifth anniversary of the date of this Amendment, the Lease shall automatically terminate and shall become null and void. 6. Correction of Tyimranhical Error Section 14.3 of the Lease is hereby amended and renumbered 13.3. There is no Article IV in the Lease. 7. New Section 13.4 The following new section is hereby added to the Lease: 13.4 Right of Set -off and Security Agreement (a) In addition to all other remedies available to Landlord as provided in this Lease, upon a default by Tenant of any of Tenant's payment obligations to Landlord under this Lease (whether the payment of rent or otherwise), Landlord may (and notwithstanding any other provision of this Lease to the contrary), without notice to Tenant, cause the City of Brooklyn Center ( "City ") to set -off the amount of such delinquent payment (for the account of Landlord) against amounts which are or may • become due and owing by the City to Tenant as "Tax Abatements" as described in and pursuant to that certain Development Agreement by and among Landlord, Tenant and ua City dated October 23, 2006, as amended July 23, 2007, October 8, 2007, January 17, 2008 and June 29 2010 as amended the "Development Agreement"). 0 ( P g b In order to secure the prompt payment and performance of all obligations of Tenant to Landlord under this Lease now or hereafter arising, including without limitation, all indebtedness, liabilities, and obligations of Tenant of every kind, nature and description under the Lease Agreement. Tenant hereby grants to Landlord a security interest in all of Tenant's rights in and to the Tax Abatements as described in the Development Agreement ( "Collateral "). The address of the Landlord, as secured party, is 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 -2199, Attn.: Executive Director. The Tenant will defend the Collateral against all claims or demands of all persons (other than the Landlord) claiming the Collateral or any interest therein. The Tenant will not change its state of registration unless the Landlord has been given at least 30 days prior written notice thereof and the Tenant has executed and delivered to the Landlord such Financing Statements and other instruments required or appropriate to continue the perfection of the Landlord's security interest. The Tenant agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that the Landlord may reasonably request, in order to perfect and protect the security interest granted or purported to be D -2 2358282v9 granted hereby or to enable the Landlord to exercise and enforce its rights and remedies hereunder with respect to any Collateral. The Tenant hereby authorizes the Landlord to file one or more Financing Statements or continuation statements in respect thereof, and amendments thereto, relating to all or any part of the Collateral without the further consent of the Tenant where permitted by law. At any time after the occurrence of any default under the Lease Agreement, until such default is cured to the satisfaction of the Landlord, the Landlord may (but need not), in the Landlord's name or in Tenant's name, execute and deliver proofs of claim, receive all such monies, endorse checks and other instruments representing payment of such monies, and adjust, litigate, compromise or release any claim against the issuer of any such policy. Upon the occurrence of a default under the Lease Agreement and at any time thereafter until the default is cured to the reasonable satisfaction of the Landlord, the Landlord may exercise and enforce any and all rights and remedies available upon default to a secured party under the Uniform Commercial Code. Upon the occurrence of such a default and at any time thereafter until the default is cured to the reasonable satisfaction of the Landlord, the Landlord may notify any person obligated on any Collateral that the same have been assigned or transferred to the Landlord and that the same should be performed as requested by, or paid directly to, the Landlord, as the case may be. The Tenant shall join in giving such notice, if the Landlord so requests. 8. Certain Payment On the date hereof Tenant has paid to Landlord $72,181 representing certain lost revenues arising from the adjustment of the Commencement of the • Term of the Lease as herein provided. 9. Full Force and Effect Except as expressly amended by this Amendment, the Lease will remain in full force and effect in accordance with its terms, provisions and conditions. 10. Governin! Law This Amendment shall be governed by and construed in the same manner as .provided in the Lease. 11. Counterparts This Amendment may be executed in counterparts and all such executed counterparts shall constitute the same agreement. it shall be necessary to account for only one such counterpart in proving this Amendment. Facsimile signatures shall be deemed original signatures for all purposes. [end of page] D -3 2358282v9 Landlord and Tenant have caused this Amendment to have been duly executed and delivered as of the day and year first above written. Landlord: Economic Development Authority of Brooklyn Center By Its President And By Its Executive Director • • D -4 2358282x9 • Tenant: Brooklyn Hotel Partners, LLC By Its DRAFTED BY: Briggs and Morgan, P.A. (DGG) 2200 IDS Center 80 South Eighth Street Minneapolis, Minnesota 55402 -2157 Telephone: (612) 977 -8400 D -5 2358282v9 Exhibit A • Demised Premises That part of the structure known as 'Building D" and /or the "D Barn" shown and depicted as the hatched area on the site plans attached, which 'Building D" is located upon the following described real property: Tract F, Registered Land Survey No. 1594, Hennepin County, Minnesota. • D -6 2358282v9 • � a i5 f O \ i i D BARN EBHC LINK TO EMBASSY SUITES BROOKLYN CENTER, MN 1 .4 BBlumentals /Architecture Inc. 07/04/09 D -7 2358282v9 �a 3 i r ! t,✓� a .............. i D BAR - Level 2 �✓ /e */ 1 ' Q V ' .......... EBHC LINK TO EMBASSY SUITES BROOKLYN CENTER, MN 0A Btumenta(s 1 Architecture Inc. 05/27/2010 ! D -8 2358282x9 • EXHIBIT E SECURITY INTEREST SUBORDINATION AGREEMENT This Security Interest Subordination Agreement (this "Agreement ") is made effective as of the 29 day of June, 2010, by and between Hurlbut - Zeppa Charitable Trust AR, a Minnesota charitable remainder trust, by Alan Zeppa, the sole trustee ( "Lender "), and the City of Brooklyn Center, a Minnesota municipal corporation (the "City "), the Economic Development Authority of Brooklyn Center, a body corporate and politic organized and existing under the laws of the State of Minnesota (the "EDA ") and The Housing and Redevelopment Authority in and for the City of Brooklyn Center (the "HRA "). RECITALS A. Pursuant to a Development Agreement dated October 23, 2006 by and between the City, the EDA and Brooklyn Hotel Partners, LLC, a Minnesota limited liability company ( "Developer "), as amended July 23, 2007, October 8, 2007, January 18, 2008 and June 29, 2010 (as amended, the "Development Agreement "), the City has agreed to make certain tax abatement payments to the Developer ( "Tax Abatement Payments ") conditioned upon, and in accordance with the terms and conditions of the Development Agreement. B. The Developer has previously assigned the Tax Abatement Payments, and granted a security interest therein, to and in favor of Lender pursuant to: (1) that certain Assignment of Right to Receive Tax Abatement Payments dated January 18, 2008 by and between the Developer and the Lender (the "Assignment "), and (2) that certain Security Agreement dated January 18, 2008 by and between the Developer and the Lender (the "Security Agreement "). C. The Developer has previously entered into: (1) a certain lease dated November, 2007 with the EDA for the leasing of space in the Earle Brown Heritage Center (the "Center ") as amended June 29, 2010 (as amended, the "Lease "), and (2) a certain License Agreement with the HRA dated June 29, 2010 (the "License ") for the use of an enclosed pedestrian link located in the Center, if and when constructed by the City or the EDA. D. Pursuant to the Lease and the License the Developer has agreed to make certain payments and reimbursements to the EDA and the HRA, which payment obligations are secured by (1) a right of set -off by the City, for the account of the EDA and/or the HRA, as applicable, against the Tax Abatement Payments, and (2) a security interest in the Tax Abatement Payments all as further set forth and described in the Lease and the License. E. In order to induce the EDA to enter into an amendment to the Lease of even date herewith and in order to induce the HRA to enter into the License, Lender has agreed to subordinate its assignment rights and security interest in the Tax Abatement Payments to the right of set -off and the security interest in the Tax Abatement Payments granted to the EDA and the HRA in the Lease and the License in accordance with the terms of this Agreement. E -1 2358282v9 AGREEMENTS • For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged; the parties hereto agree as follows: 1. The Lender hereby agrees that, regardless of any priority otherwise available to the Lender by law or by agreement, any security interest which the Lender now or may have at any time hereafter in the Tax Abatement Payments together with all products and proceeds thereof, is, and shall be, and shall remain subordinate for all purposes to: (a) the right of set -of granted by the Developer to the EDA and the HRA in the Lease and the License, respectively, and (b) any security interest in the Tax Abatement Payments now held or at any time thereafter granted to or acquired by the EDA and /or the HRA to secure the payment obligations of the Developer under the Lease and /or the License. 2. The Lender hereby consents to the grant by the Developer of a security interest in the Tax Abatement Payments to the EDA and the HRA as collateral security for the Developer's payment obligations under the Lease and the License. 3. Lender hereby agrees that after written notice to the Lender from the EDA and /or the HRA of the occurrence of a default by the Developer of its obligations under the Lease and/or the License, the Lender will not exercise any collection rights with respect to the Tax Abatement Payments, will not take possession of the Tax Abatement Payments, and will not exercise or enforce any right or remedy which may be available to the Lender with respect to the Tax Abatement Payments without the prior written consent of the EDA and the HRA. 4. The Lender warrants that any purchaser or transferee of, or successor to, any security interest of the Lender in any or all of Tax Abatement Payments will be given detailed written notice of the subordination accomplished hereby, prior to the time of purchase, transfer or succession. 5. All notices given under this Agreement shall be in writing and shall be sent postage prepaid by either (a) United States certified mail, return receipt requested, or (b) for delivery on the next business day with a nationally - recognized express courier. All such notices shall be sent to the following addresses, until such addresses are changed by 30 days' notice: To EDA: Economic Development Authority of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 -2199 Attn: Executive Director To HRA: The Housing and Redevelopment Authority in and for the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 -2199 Attn: Executive Director • E -2 2358282v9 • To City: City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 -2199 Attn: City Manager To Lender: Hurlbut -Zeppa Charitable Trust, AR 222 East Superior Street, Suite 302 Duluth, Minnesota 55802 Attn: Tony Cuneo Notices shall be deemed given as of the date such notice is postmarked, if sent by certified mail, or is placed with an express courier, if sent by express courier. If the last day for giving any notice or taking any action required or permitted under this Agreement would otherwise fall on a Saturday, Sunday, or legal holiday, that last day shall be postponed until the next legal business day. 6. This Agreement is made under the laws of the State of Minnesota. It cannot be waived or changed or terminated except by a writing signed by the parties to be bound hereunder. It shall be binding upon the Lender and its successors, representatives and assigns. [end of page] • E -3 2358282v9 HURLBUT -ZEPPA CHARITABLE TRUST AR By Alan Zeppa, the sole trustee CITY OF BROOKLYN CENTER. By Its: Mayor By Its: City Manager ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER By Its President • By Its Executive Director THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER By Its Chairman By Its Executive Director • E -4 2358282v9 AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION June 28, 2010 • Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. Council Chambers City Hall A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS PENDING LIST FOR FUTURE WORK SESSIONS Later /Ongoing 1. Sister City Update — Curt 2. 57th and Logan Update 3. Strategic Outcome Reports 4. Prosecutor Services Contract 5. Community Schools Update 6. 2011 Brooklyn Center Celebration Update 7. Neighborhood Designations • 8. Junk and Inoperable Vehicles Update — Back Yard Parking 9. Minn. Stat. 273.128 4d Rental Properties — Annual Report — January 10. Brookdale Mall Update 11. Joslyn/City Property Remediation Update 12. Department Year End Reports 13. Active Living Program 14. RER — Howe Fertilizer Update 15. Garbage Hauler Report •