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HomeMy WebLinkAbout2011 03-28 CCM Study Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION MARCH 28, 2011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:10 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Tim Roche, and Dan Ryan. Absent and excused was Councilmember Kay Lasman. 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 Kleven requested discussion of Work Session Item No. 2, Review of TIF 5 Development Agreement, and asked if the owner of Midas, who plans to retire in several years, will be asked to retire early if Gatlin Development buys the Midas site. Mayor Willson explained that if Gatlin Development acquires the Midas site, it must have come to an agreement on the purchase price with the owner. He stated this is outside of the Council's purview but from the City's perspective, it is a good thing to include the Midas site in the redevelopment rather than have it redevelop several years into the future. City Manager Curt Boganey stated that the Mayor's response is accurate and this matter will be discussed in additional detail during the Work Session. Councilmember Ryan stated he had noticed the illustration of Shingle Creek Crossing did not incorporate the Kohl's property but a recent document indicates that Gatlin Development will secure a mortgage on the Kohl's property. Mr. Boganey explained that the Brookdale Mall and Kohl's are owned by Capmark and it has always been the intent of Gatlin Development to purchase all of the Capmark property as reflected in the original acquisition plans. However, there are no plans to redevelop the Kohl's property so it was indicated as being outside of the redevelopment area. Councilmember Ryan asked if the mortgage is part of the developer's security and guarantee relative to Phase 1. Mr. Boganey answered in the affirmative. 03/28/11 -1- MISCELLANEOUS Councilmember Roche requested an update on the potential of flooding along the Mississippi River. Public Works Director /City Engineer Steve Lillehaug stated the National Weather Service is vague on the Mississippi River in Brooklyn Center and not yet predicting a crest but has determined the probability of flooding is somewhat lowered. He indicated that staff will continue to monitor the situation and keep the Council updated. Councilmember Roche stated there has been sandbagging at the property just north of I -694 at TH252. Mr. Lillehaug reported that so far six property owners had taken advantage of sandbags and sand. Councilmember Roche reviewed the upcoming community events and advocated for the City to send a formal invitation to the White House to come to Brooklyn Center and celebrate its Centennial this summer. He stated the invitation could highlight how the City successfully leveraged use of public works stimulus funds. Mr. Boganey stated that City staff has not sent a formal invitation to the White House. Mayor Willson advised that the Centennial Committee did send a formal invitation to the White House. He indicated that he was not opposed to the suggestion and would be happy to sign such a letter if approved by the Council. However, he noted that a lot of logistics are involved during a Presidential visit. Councilmember Roche stated such an invitation could provide the possibility of "opening a window" and he would be happy to coordinate the letter and make contact with the elementary schools to also send invitations. Councilmember Ryan stated that while this is a nice thought, the President's security detail is another consideration. Councilmember Ryan requested discussion on the March 23, 2011, letter from Hennepin County Taxpayer Services and the March 28, 2011, letter from Hinshaw & Culbertson LLP relating to the redevelopment of Brookdale and Sears. Mr. Boganey explained the Hennepin County letter acknowledges receipt of the City's notice to create a new TIF district and is a favorable response. Mr. Eitel noted it also indicates the TIF district satisfies the preference of Hennepin County for use of tax increment financing as a tool of last resort. Mr. Boganey stated the letter from Hinshaw & Culbertson LLP, representing Sears, contains an inaccurate statement that they had received assurances the Council would not take action prior to April 11. Mr. Boganey advised that statement had not been made and the letter contained nothing that is not a repetition of previous comments. Mayor Willson announced a panel discussion will again take place at the Brookdale Library the first weekend in April. The same pastor will be facilitating "Why do Bad Things Happen to Good People." 03/28/11 -2- Mayor Willson stated he received a letter from Dr. Joseph A. Howard about last week's grand opening of A -List, a non - profit organization for teens in Brooklyn Park. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS WEST PALMER LAKE PARK BUILDING Mr. Lillehaug explained the 2011 Capital Improvement Program (CIP) includes a project to replace the West Palmer Lake Park building. He displayed pictures of the current park building, noting its state of disrepair, and the Kylawn Park building /shelter that was constructed at $250,000. Mr. Lillehaug advised that $300,000 is planned for the West Palmer Lake Park building and it will include a furnace, which was not included in the Kylawn Park building. The West Palmer Lake Park building does not have a hockey rink with boards but a general ice rink. Mr. Lillehaug requested Council input on the replacement of this park building. Mr. Boganey stated if this project comes in under budget, the funds could be used to add a furnace to the Kylawn Park building. However, that may open the expectation that the building would be staffed during winter months, which is not the case. The City Council concurred with the need to replace the current deteriorated West Palmer Lake Park building and directed staff to proceed with the building project consistent with the Kylawn Park building constructed in 2007 -2008 and to include a furnace to extend use during the winter months. REVIEW OF TIF 5 DEVELOPMENT AGREEMENT Director of Business and Development Gary Eitel stated the Council /EDA gave direction at its January 24, 2011, Work Session for a development framework that was formalized in a letter dated February 1, 2011, to the developer. He explained the development agreement between the EDA and Gatlin Development is 40 -50 pages in length to cover all statutory requirements so a summary will be presented tonight. It was noted the draft development agreement reflects the following modifications to the information available at the January 24, 2011, Council/EDA Work Session: 1. The developer has entered into a purchase agreement to acquire the Midas site and is revising the PUD plans to incorporate this site into the PUD. 2. The developer has agreed to the use of a Pay -As- You -Go Note in lieu of the City issuing a General Obligation (GO) Tax Increment Bond associated with the completion of the minimum improvements of Phase I, which includes the internal streetscaping and daylighting of Shingle Creek. Jenny Boulton, City Attorney's Office, explained the EDA owns a parcel of land within the TIF district that would convey to Gatlin Development as part of the development. State law requires, when an EDA conveys land, that it be done for a purpose and development must commence, beyond site preparation, within one year. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL 03/28/11 -3- Councilmember Roche moved and Councilmember Ryan seconded to close the Study Session at 6:45 p.m. Motion passed unanimously. RECONVENE STUDY SESSION Councilmember Ryan moved and Councilmember Roche seconded to reconvene the Study Session at 6:49 p.m. Motion passed unanimously. REVIEW OF TIF 5 DEVELOPMENT AGREEMENT - CONTINUED The discussion continued on the Gatlin Development development agreement. Mr. Eitel displayed a map of the development and pointed out the EDA site to be conveyed. He explained that document will provide a mechanism by which the EDA property would be appraised, which was completed. It also promotes the incorporation of the Midas site into the PUD. Mr. Eitel stated the first issue is the statutory conveyance of the EDA property and the second issue is that the developer has now included the Midas site into the overall PUD application process. With regard to the Midas site, Ms. Boulton stated the developer is purchasing the land not with cash paid to the EDA but will deliver a promissory note, secured by a mortgage on the EDA parcel. The promissory note will be forgiven and deemed paid if the Midas site is redeveloped consistent with the PUD. Councilmember Ryan asked what the cost is for the EDA property. Mr. Eitel stated the draft appraisal indicates $355,000. Councilmember Roche asked if creek daylighting or road construction would qualify as the beginning of construction. Ms. Boulton stated the surrounding roads may not be sufficient because the Statute relates to the use of the parcel of property. Councilmember Ryan asked if there would have to be buildup on the EDA property to show appropriate use of TIF. Ms. Boulton stated it involves the use of public funds so the property has to be used for the purpose intended through conveying it. Mayor Willson noted that Walmart has not asked for, and will receive no, TIF or assistance. Ms. Boulton stated the TIF law does not'have that same time frame for specific development and deals more with the contractual undertaking by the developer and conditions for receiving funds from TIF No. 5. She referenced Article V, Tax Increment Assistance, of the development agreement that addresses the portion paid from tax increments of a new district. Ms. Boulton explained the idea is that when Gatlin Development has completed the items required (minimum improvements), the EDA will deliver a Pay -As- You -Go Note so when tax increments are paid to 03/28/11 -4- the EDA from the County, it will make payment to the developer for up to a 15 -year period, the term of the TIF district. Mayor Willson stated he fully agreed with Ms. Sannes, who addressed the Council at Informal Open Forum, that restaurants are needed in Brooklyn Center and that will happen by building the local economy and bringing in more jobs. ADJOURNMENT Councilmember Roche moved and Councilmember Ryan seconded to close the Study Session at 7:00 p.m. Motion passed unanimously. 03/28/11 -5- 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 Study Session of the City Council of the City of Brooklyn Center held on March 28, 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 April 11, 2011, Regular Session. City Clerk Mayor 03/28/11 -6-