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HomeMy WebLinkAbout2011 01-10 CCM Work Session 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 JANUARY 10, 2011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session called to order by Mayor /President Tim Willson at 8:38 p.m. ROLL CALL Mayor /President Tim Willson and Councilmembers /Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. 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 & Community Standards Vickie Schleuning, and Chris Moksnes, TimeSaver Off Site Secretarial, Inc. TAX INCREMENT FINANCING DISTRICT NO. 3 City Manager Curt Boganey explained the Council had set a public hearing to consider Tax Increment Finance (TIF) No. 3 and the purpose of the discussion tonight is to provide additional detail prior to the public hearing. Jenifer Wolfe, Senior Project Manager with Springsted Incorporated, the City's financial consultant, presented the impacts of removing 13 Brookdale area parcels from TIF District No. 3 and the decertification of TIF District No. 2, which is in its final year. It was noted that the current tax capacity for the Brookdale parcels is less than the original tax capacity so these parcels do not create increment. When removed, the captured tax capacity in the District will increase in payable 2012. The captured tax capacity of $521,004 will be split between the Robbinsdale and Brooklyn Center School Districts. With regard to the decertification of TIF District No. 2, the captured tax capacity estimated for Pay 2011 is $670,138, creating a positive impact. Director of Business and Development Gary Eitel explained that if not approved, there would likely be an annual shortfall. Ms. Wolfe concurred and explained that if the Council elected to not remove the Brookdale properties from the District, the projected cash flow from that District would not be sufficient to annually pay off the bonds. Mr. Boganey stated this information is based on assumptions and new construction and increase in tax capacity could alter the assumptions but he believed this was a better option. 01/10/11 -1- Councilmember /Commissioner Ryan stated the problem is the tax capacity does not provide the cash flow to pay off the debt but since TIF District No. 2 is retiring, it will relieve that pressure and allow an opportunity to remove these 13 parcels. Councilmember /Commissioner Roche stated the goal is to ensure the financial stability of the City, so he would favor removing the 13 Brookdale parcels from TIF District No. 3. Mr. Boganey explained that if the City provides any TIF assistance to the Shingle Creek redevelopment project, it would require the creation of a new district so the Brookdale parcels would have to be removed from the current District. However, even if no new development was proposed, staff would recommend these parcels be removed from TIF District No. 3. Mayor /President Willson noted the removal of these parcels positions the City well for redevelopment of the Brookdale area. He stated he is looking forward to conversation with the developer of Shingle Creek Crossings. STERLING SQUARE — JOHN RODER Mr. Boganey noted this item was added to the agenda at the Council's direction. Mr. Roder's license was revoked for a year, ending April 2011. At the December 13, 2010, open forum, Mr. Roder requested the Council revisit the revocation. Mayor /President Willson noted the staff report provides information the Council had requested. John Roder, Sterling Square Apartment owner, indicated he put a site manager in place last October. The site manager is on premise to keep things in control while the property is in transition. He provided a list detailing improvements made thus far and indicated he would meet with the Police Chief to address any of their concerns. He asked the Council to reconsider and reinstate his rental license. Mayor /President Willson pointed out the financial obligations have been met and property maintenance issues were being worked on. He recalled that the criminal activities have been reduced; however, there continues to be a large volume of police calls. Mayor /President Willson asked Mr. Roder how he planned to mitigate the number of police calls. Mr. Roder explained the on -site manager will play a big part in correcting those activities and he has also hired on on -site caretaker to minimize property issues. He commented on the difficulty in evicting a resident if their rent is paid, yet he has evicted some residents due to activities. Mr. Roder assured the Council that the rent up plan was a solid plan going forward and would also be beneficial to him because it will assure better residents. Police Chief Benner stated the Department prepares monthly status reports on this property and there has been a reduction in calls but he is also mindful there has been a reduction in the population as well. He noted the Department has dedicated officers to this property, which is one of the few properties afforded this attention. He pointed out there is a 16.67% decline in calls, but the population has decreased 30% so the proportion of calls is not yet acceptable. 01 /10 /11 -2- Mr. Boganey explained that if the Council determines to move forward with reconsideration, assuming all issues are addressed, the license renewal application could be considered before April 26, 2011, when the revocation expires. Assistant City Manager /Director of Building and Community Standards Vickie Schleuning stated staff will do what it can to meet the timeframes set by the Council; however, it is dependent on the property owner meeting the requirements. Mayor /President Willson commended Mr. Roder for working with the City to provide affordable housing that is maintained and not a drain on City services. He stated he remains concerned with the situation but would not be opposed to discussing the item at a March meeting. Councilmember /Commissioner Roche reminded the Council that the last time this matter was discussed, the City Attorney had spoken of precedent setting in terms of the efforts the City has made with rental licensing. He believed the City needed to be consistent and preferred to get the City Attorney's opinion prior to considering this request. Mr. Boganey explained the process would include a hearing and determination of findings by the Council that would lay out the argument and the basis for reconsideration of the revocation in this specific case. To the extent that the findings are unique, a precedent would not be established. Councilmember /Commissioner Lasman recalled the last meeting included a lengthy conversation and asked whether this is typically the method used when reconsidering a revocation. Mr. Boganey responded that this situation could be somewhat unique. His understanding is that the resolution didn't preclude staff from accepting a rental application and beginning that process. Councilmember /Commissioner Lasman also commended Mr. Roder for his work to improve this rental property. She asked if he would expect the calls for service to stay low even when fully occupied. Mr. Roder responded that he does not anticipate the number of calls getting higher and he does not intend to harbor anyone that is not following the rules. Councilmember /Commissioner Roche commended Mr. Roder for constructing fencing around the property but noted there have been a high number of calls for service. Mr. Roder explained he does not want his employees to be placed in danger and would pay close attention to the recommendations made by the Police Department. Councilmember /Commissioner Ryan noted that despite the fact that it was financially challenging, Mr. Roder had evicted tenants which indicated his commitment to having the right tenants in place. Councilmember /Commissioner Ryan suggested means to screen tenants. Mr. Roder responded he does screen applicants but there are a lot of other factors, such as tenants bringing in others that are not listed on the application. Councilmember /Commissioner Ryan stated he had not been in favor of the 12 -month revocation but did agree with a six -month revocation. He acknowledged that because the owner was in arrears on taxes and utilities, some penalties had been in order. Councilmember /Commissioner 01 /10 /11 -3- Ryan stated the Council does not intend to be punitive, but does strive to have an appropriate penalty. He indicated he would favor considering an application for licensure based on the meeting tonight. Mr. Boganey informed the Council of the process that would occur. The Council would first hold a hearing to reconsider the revocation and make the findings upon which the license would no longer be revoked. Mr. Roder would be required to submit a new application and depending on the type, may require a mitigation or action plan. Mayor/President Willson polled the Council whether they would consider early termination of the revocation of this license. Councilmembers /Commissioners Kleven, Lasman and Ryan, and Mayor /President Willson indicated they would support reconsideration subject to all requirements being met. Councilmember /Commissioner Roche indicated he would not support reconsideration. Councilmember /Commissioner Roche stated he remained deeply concerned about precedent setting and believed reconsideration would undermine the basic process staff has performed over the past year. He would also prefer an opinion from the City Attorney before taking any action. Mayor /President Willson clarified staff was being asked to bring back more information and the City Attorney would be present at the next meeting for discussion. Councilmember /Commissioner Kleven stated the applicant has proven that he has worked on the issues, but she believed it would be helpful to wait the entire year to allow the applicant to prove himself. Mr. Boganey stated staff would assemble a report, consult with the City Attorney, and provide an indication of what the next step options would be. This information will be brought to the next meeting for Council consideration. ADJOURNMENT Councilmember /Commissioner Ryan moved and Councilmember /Commissioner Kleven seconded adjournment of the City Council /Economic Development Authority Work Session at 9:37 p.m. Motion passed unanimously. 01/10/11 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Work Session of the City Council of the City of Brooklyn Center held on January 10, 2011. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its January 24, 2011, Regular Session. City Clerk Mayor O1 /10 /11 -5-