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HomeMy WebLinkAbout1999 01-28 PCM MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR MEETING JANUARY 28, 1999 CALL TO ORDER The Planning Commission met in a regular meeting called to order by Chair Willson at 7:35 p.m. ROLL CALL Chair Tim Willson, Commissioners Graydon Boeck, Stephen Erdmann, Sean Rahn, and Dianne Reem were present. Also present were Secretary to the Planning Commission/Planning and Zoning Specialist Ronald Warren, Community Development Director Brad Hoffman, Community Development Specialist Tom Bublitz, Councilmember Ed Nelson, Real Estate Recycling Representative Paul Hyde and Planning Commission Recording Secretary Heidi Wirth. Absent was Commissioner Rex Newman with prior notice. APPROVAL OF MINUTES - DECEMBER 3. 1998 There was a motion by Commissioner Boeck, seconded by Commissioner Erdmann, to approve the minutes of the December 3, 1998 meeting as submitted. The motion passed unanimously. APPROVAL OF MINUTES - DECEMBER 17 1998 (JOINT SESSION WITH CITY COUNCIL There was a motion by Commissioner Reem, seconded by Commissioner Boeck, to approve the minutes of the December 17, 1998 Joint Session meeting as submitted. The motion passed unanimously. ADJOURN 1998 PLANNING COMMISSION There was a motion by Commissioner Boeck, seconded by Commissioner Rahn, to adjourn the 1998 Planning Commission at 7:38 p.m. The motion passed unanimously. OATHS OF OFFICE Mr. Warren administered oaths of office to Tim Willson, Graydon Boeck, Sean Rahn and Dianne Reem, each reappointed to the Planning Commission for a two -year term expiring on December 31, 2000. CALL TO ORDER AND ROLL CALL Commissioner Willson called to order the 1999 Planning Commission at 7:40 p.m. with Commissioners Boeck, Erdmann, Rahn, Reem, and Willson present. 1 -28 -99 1 ELECTION OF 1999 CHAIR AND 1999 CHAIR PRO TEM There was a motion by Commissioner Erdmann, seconded by Commissioner Reem, to nominate Commissioner Willson to the position of 1999 Chair of the Planning Commission. No further nominations were made. There was a motion by Commissioner Boeck, seconded by Commissioner Rahn, to close nominations for 1999 Chair. The motion passed unanimously. The motion nominating Commissioner Willson to the position of Chair of the 1999 Planning Commission passed unanimously. Commission Willson stated he accepts the position. There was a motion by Commissioner Reem, seconded by Commissioner Erdmann, to nominate Commissioner Boeck to the position of 1999 Chair Pro Tem of the Planning Commission. No further nominations were made. There was a motion by Commissioner Reem, seconded by Commissioner Erdmann, to close nominations for 1999 Chair Pro Tem. The motion passed unanimously. The motion nominating Commissioner Boeck to the position of 1999 Chair Pro Tem passed unanimously. Commissioner Boeck stated he accepts the position. CHAIR'S EXPLANATION Chair Willson explained the Planning Commission's role as an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council, The City Council makes all final decisions in these matters. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.1 A. Resolution Regarding Confirmation that the Tax Increment Financing Plan for Tax Increment Financing (Soils Condition) District No. 1 Conforms to the Development Plan of the City Mr. Warren reviewed this item with the Commission and displayed a map of the proposed TIF area. He stated that the City Council will consider establishing the Tax Increment District and there will be a public hearing on February 8, 1999. Mr. Warren explained that the Planning Commission is to consider this item and its consistency between the development plan and the Comprehensive Plan for the City. He noted that the proposed use for this land is industrial /light industrial which is in line with the Comprehensive Plan. Mr. Warren stated that he feels the proposed TIF District poses no problems with the Comprehensive Plan as proposed in the development plan and asked for questions from the Commission. Mr. Bublitz informed the Commission of the chemical soil problems with the land and spoke of the past uses on this site. He stated that the proposed TIF District has been declared a superfund site. He noted that the City is in the process of working with Real Estate Recycling to develop this site. The clean-up of this site and accompanying industrial development would be beneficial for the City in creating jobs and tan capacity. He noted that there are sources for grants from the Met Council, in addition to TIF monies. He stated that at this time the City is working for a clean-up program that would be acceptable to TIF and that a soils condition district would be eligible for this site. 1 -28 -99 2 Mr. Bublitz explained that the City could sell bonds to finance the clean-up project and then have them paid off after the work was completed. He stated that the City will use a pay -as- you -go style of financing for this project. A cap of $4 million dollars has been set for TIF money or a cap of $2.00 /square foot for fair market value without the contamination. The time period for TIF money is 20 years and the City hopes to have this project paid off in 10 -12 years. Mr. Bublitz reviewed the estimated public costs and noted the eligible reimbursements from TIF. He stated that the current value of the land is $2 million, and after the clean-up the City is predicting $18- $20 million. Commissioner Boeck asked if the City has designated TIF funds for development of this site in their development plans. Mr. Warren stated that this site is to be used for industrial and light industrial, and the use of TIF funds is not an issue addressed in the Comprehensive Plan. In addition, the Comprehensive Plan does not establish standards on the financing of the development. Commissioner Boeck asked if TIF conforms with the development plan. Chair Willson stated that it does conform with the Comprehensive Plan because the development is industrial /light industrial as previously designated. Chair Willson explained that the financing of this development is not an issue. Commissioner Boeck asked how many acres were on the proposed TIF site. Mr. Hoffman stated that there is roughly 40 acres and the fair market value of this land is $2.00 per square foot based on the expenses to clean up the site, or $8.6 million. Chair Willson asked what the value of the land would be after the $8.6 million clean up. Mr. Hoffman stated that the value would be between $18 -$25 million. Chair Willson asked what the potential zoning of this site would be. Mr. Warren stated that the zoning would be I -2. Commissioner Boeck asked where the additional $4 million in funding would come from, after the $4 million in TIF is supplied. Mr. Hoffman stated that the TIF funds represent the gap between the grants and existing funding for this site. Commissioner Boeck asked about the potential tax funding from this site in the future. Mr. Hoffman stated that the net tax capacity is estimated at $600,000. He noted that this is a conservative estimate and inflation was not taken into consideration. Mr. Hoffman stated that if the clean-up work was not done the current tax implications leave the City at $100,000 in tax capacity. Commissioner Reem asked if the 10 to 20 year limit for financing is similar with other TIF districts in the City. Mr. Hoffman stated that this is the Minnesota Statutes for the Soil District but the City would like to keep the term between 10 to 12 years. Commissioner Reem asked if the proposed expenses came from private bids. Mr. Hoffman stated that it came from the developer and the City will obtain a bid from a specialist to make sure these numbers are in line. Chair Willson asked if any other TIF Soils Districts are possible in the City. Mr. Hoffman stated that Howe Fertilizer area could be a possibility in the future. 1 -28 -99 3 Commissioner Erdmann asked what the definition of this project area is or who established it within the City. Mr. Hoffinan stated that this will be the third TIF District in the City. He noted that TIF funds can only be used for a certain project area and must meet specific recommendations within the statutes on qualified costs. Mr. Hoffman explained that 75% of the TIF funds must be used on the proposed site. Commissioner Rahn asked if it is conceivable to have all phases of the proposed development begun within five years of the development's start, or if this could be extended. Mr. Hoffman stated that there would be a penalty to the developer in the loss in taxing capacity and funding from potential purchasers. Commissioner Boeck asked if Joslyn had an agreement with the EPA to not clean up the site. Mr. Hoffman stated that they have an agreement to continuously pump the site but the current standards are not acceptable for the sale of the land. Commissioner Boeck asked if the developer's plan states conditions to deal with non - compliance. Mr. Hoffman explained that the City will only pay the developer for performance in conformance with the agreement. There was a motion by Commissioner Erdmann, seconded by Commissioner Rahn, to adopt Planning Commission Resolution No. 1, regarding confirmation that the Tax Increment Financing (Soils Condition) District No. 1 conforms to the development plan of the City. Voting in favor: Chair Willson, Commissioners Boeck, Erdmann, Rahn and Reem. The motion passed unanimously. Mr. Warren explained that this will be considered by the Council on February 8, 1999 and encouraged the Planning Commission members to attend. OTHER BUSINESS Chair Willson asked when the Comprehensive Plan would be returned from the Met Council. Mr. Warren stated that it should be back in several weeks for final review. He explained that once the plan is accepted by the Met Council, the City will hold a public hearing to gain input from the public. Commissioner Rahn asked if light rail should be considered in the Comprehensive Plan. Mr. Warren explained it is not proposed to run through Brooklyn Center. Commissioner Reem asked when CUB would be coming before the City. Mr. Warren stated that it would be some time in March. Mr. Warren explained to the Commission that they are currently one member short at this time and the Mayor is asking for applications at this time. He stated that the Commission should expect someone appointed to the seat in mid to late February. 1 -28 -99 4 ADJOURNMENT There was a motion by Commissioner Boeck, seconded by Commissioner Rahn, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 9:08 p.m. d Chair Recorded and transcribed by: Heidi Wirth Timesaver Off Site Secretarial, Inc. 1 -28 -99 5