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HomeMy WebLinkAbout2013 11-12 CCP Regular SessionAGENDA CITY COUNCIL STUDY SESSION TUESDAY, November 12, 2013 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 of Brooklyn Center TUESDAY, November 12, 2013 AGENDA 1.Informal Open Forum with City Council — 6:45 p.m. —provides an opportunity for the public to address the Council on items which are not on 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 infoimational 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 a 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.October 21,2013 — Joint Work Session with Financial Commission 2.October 28,2013 — Study Session 3.October 28,2013 — Regular Session 4.October 28,2013 — Work Session b.Licenses c.Resolution Establishing the Interest Rate for 2014 Special Assessments d.Resolution Establishing 2014 Street and Storm Drainage Special Assessment Rates e.Resolution Authorizing the Execution of an Agreement for Participation in the Roadside Enhancement Partnership Program for the Brooklyn Boulevard/Highway 100 Bridge Reconstruction Project Between Hennepin County and the City of Brooklyn Center CITY COUNCIL AGENDA -2- TUESDAY, November 12, 2013 7.Presentations/Proclamations/Recognitions/Donations —None. 8.Public Hearings a. Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, and Modification of Tax Increment Financing Disrict No. 3, and Adopting a Modified Tax Increment Financing Plan Therefor —This item was published in the official newspaper on October 31, 2013, and is offered this evening for a Public Hearing. 1. Resolution Approving a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, and a Modification of Tax Increment Financing District No. 3, and Adopting a Modified Tax Increment Financing Plan Therefor Requested Council Action: —Motion to open Public Hearing. —Motion to take public input. —Motion to close Public Hearing. —Motion to adopt resolution. 9.Planning Commission Items a. Planning Commission Application No. 2013-022 Submitted by Avis-Budget Group. Request for Special Use Permit Approval to Allow Budget Rental Trucks to be Stored and Leased from the Existing Avis Auto Rental Facility, Located in the Sears Automotive Center Building and Properties. The Planning Commission recommended approval of this application at is October 17, 2013, meeting. 1. Resolution Regarding the Disposition of Planning Commission Application No. 2013-022 Submitted By Avis Budget Group, Inc. for a Special Use Permit to Park and Lease Budget Rental Trucks at the Avis Rent-A Car/Sears Automotive Center, Located At 1299 Shingle Creek Crossing (Formerly 1299 Brookdale Center) Requested Council Action: —Motion to adopt resolution. 10.Council Consideration Items a.Mayoral Appointment of Member to Serve on Park and Recreation Commission Requested Council Action: —Motion to ratify Mayoral nomination. b.Resolution Providing for the Competitive Negotiated Sale of $4,920,000 General Obligation Improvement Bonds, Series 2013B c. Resolution Providing for the Competitive Negotiated Sale of $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013A Requested Council Action: —Motion to adopt resolution. CITY COUNCIL AGENDA -3- TUESDAY, November 12, 2013 d. Consideration of Type IV 6-Month Provisional Rental License for 6713 Colfax 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. e. Consideration of Type IV 6-Month Provisional Rental License for 5111 Drew Avenue North Requested Council Action: —Receive staff report. —Motion to continue hearing. —Receive testimony from applicant. —Motion to close hearing. —Take action on rental license application and mitigation plan. 11.Council Report 12.Adjournment 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 JOINT WORK SESSION WITH FINANCIAL COMMISSION OCTOBER 21, 2013 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 6:30 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present: City Manager Curt Boganey, Community Activities, Recreation and Services Director Jim Glasoe, Public Works Director/City Engineer Steve Lillehaug, Interim Finance Director Greg Andrews, and Deputy City Clerk Maria Rosenbaum. Others present were Financial Commissioners Patricia Glenn, Steve Landis, Rex Newman, and Dean Van Der Werf. ENTERPRISE FUNDS City Manager Curt Boganey discussed that this evening is review the following Enterprise Funds: Earle Brown Heritage Center; Centerbrook Golf Course; Recycling; Liquor; and the Water, Sanitary Sewer, Storm Sewer, and Streetlight Utilities. Community Activities, Recreation and Services Director Jim Glasoe outlined a PowerPoint discussing the Earle Brown Heritage Center's mission, department description, staffing levels, strategic functions, annual goals/strategies, annual performance measures, capital outlay, and budget highlights. There was discussion regarding the additional Sales Manager position, and the recently new remodeled Northland Inn (now Marriott). Community Activities, Recreation and Services Director Glasoe discussed that the additional Sales Manager will help in driving more revenue and that the market will be more competitive now with newly renovated Marriott. Community Activities, Recreation and Services Director Glasoe outlined a PowerPoint discussing the Centerbrook Golf Courses mission, department description, staff levels, strategic functions, annual goals/strategies, annual goal performance measures, capital outlay, and budget highlights. There was discussion regarding the consideration of a move from Central Garage to leased equipment which could save up to $7,000 and improve efficiency and course condition. Other discussion topics with this fund included costs to keep the golf course up; cost of mowing and keeping up the 28 acre site, outcome of what is happening in the City of Brooklyn Park with their two golf courses, moving from City water to storm water for irrigation, and the idea of composting food waste for fertilizer. 10/21/13 -1- DRAFT Community Activities, Recreation and Services Director Glasoe outlined a PowerPoint discussing the Recycling Fund budget summary, rate and cash flow, and residential recycling rates for 2013/2014. The Recycling Fund will not have any increases in fees for 2014. City Manager Curt Boganey outlined a PowerPoint discussing the Brooklyn Center Liquor Funds mission, department description, staffing, strategic functions, annual goals and strategies, annual performance measures, and capital outlay and initiatives. The two liquor stores combined profits are used to fund projects benefitting the community and avoid the necessity of larger property tax levies for such projects. With these two funds, the City essentially breaks even after the $200,000 transfer to the General Fund. Public Works Director/City Engineer Steve Lillehaug outlined a PowerPoint discussing the Public Works Department mission, department description, staffing, strategic function, annual goals and strategies, and key initiatives. Public Works Director/City Engineer Lillehaug discussed the budget summary for water utility, water utility rate and cash flow, and water utility rate comparisons. Interim Finance Director Greg Andrews added information regarding the cash flow analysis that included debt that will be incurred with the new water treatment plant that is proposed to be built in 2014. The increases in this fund include a large percentage increase due to the proposed new water treatment plant for the years 2015 to 2017 with percentages starting to lower in 2018 and 2019. This proposed five year outlined is consistent with City Council Policy. There was discussion regarding borrowing, franchise fees, and the possibility of hiring a consultant for a rate study. City Manager Boganey stated that he would need to clarify the statutory cap on franchise fees; and that this would be a good time for a consultant to define the costs associated with capital and operating cost breakdowns. There was consensus for a consultant to be hired to do a rate study. Public Works Director/City Engineer Lillehaug discussed the budget summary for sanitary sewer, sanitary sewer utility rate and cash flow, and sanitary sewer utility rate comparisons. This fund continues in the same format as previous years and adjustments may be needed for the years 2016-2018 and has a proposed five percent increase. Public Works Director/City Engineer Lillehaug discussed the budget summary for storm sewer, storm sewer utility rate and cash flow, and storm sewer utility rate comparisons. This fund has a healthy cash flow and no increase is being proposed in 2014. Public Works Director/City Engineer Lillehaug discussed the budget summary for street lighting, street light utility rate and cash flow, and street light utility rate comparisons. This fund has a higher increase of ten percent to help with the shortfall in the cash flow and helps with leveling out over the next 15 years. -2- DRAFT10/21/13 MISCELLANEOUS City Manager Boganey inquired if the Council would be amenable to rescheduling the November 4, 2013, Budget Work Session with Financial Commission to November 18, 2013. There was consensus to reschedule the meeting and an item will be placed on the next City Council Agenda to amend the 2013 City Council Meeting Calendar. City Manager Boganey informed that interviews for the Finance Director position are complete and they are negotiating final details with a candidate. ADJOURNMENT Councilmember Ryan moved and Councilmember Kleven seconded to adjourn the Work Session at 8:54 p.m. Motion passed unanimously. 10/21/13 -3- 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 STUDY SESSION OCTOBER 28, 2013 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 Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. 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 Mary Mullen, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Kleven requested the following change: in the Council's Work Session Agenda packet, Item 2, Director of Business and Development Gary Eitel' s memorandum from October 28, 2013, under "Background", line 8, "medication" should be changed to "modification." Councilmember Kleven stated, with regard to EDA meeting Agenda, Item 4a, the property at 6927 Brooklyn Boulevard was considered for purchase by Slim's Pizza at one time, but the owner was not ready to sell. She asked whether the owner of Slim's Pizza was now interested in buying the property. City Manager Boganey stated the current purchase price would probably not be attractive to the owner of Slim's Pizza. Mayor Wilson stated, with regard to City Council meeting Agenda, Item 7b, awards will be presented to community members including Linda Hanka, Superintendent Bonine, and School Board Member Cheryl Jechorek, who are attending a School Board meeting at 6:30 p.m. He added they would probably arrive late to the Council meeting so their presentation would be made when they arrived. Mayor Willson asked, with regard to Council meeting Agenda Item 9b, whether Discount Tire Store will be required to add fencing to the landscaped area. He added the owner has indicated in discussions before the Council that he would be willing to do that. Councilmember Lawrence- Anderson stated the specific area in question is the pedestrian walk-through. Director of Business and Development Gary Eitel stated a fencing requirement is not currently included in 10/28/13 -1- DRAFT the resolution, but it can be added. Mr. Boganey stated it should be added to the resolution if the Council wishes to make that a requirement. The Council agreed to make that a requirement. Mayor Willson stated the requirement could be added as Item 12 in the Resolution. Councilmember Ryan stated Item 12 should include a detailed list of landscaping requirements that are the same as the general landscaping guidelines for the Shingle Creek Crossing development. Mr. Boganey stated if the Council agrees, a list of requirements could be determined by the City Planner and Building Official. The Council agreed to make that a requirement. Mr. Eitel stated a fence could be required that is similar to the decorative, wrought iron-look fence at Holiday. He added that fence is four feet in height. He noted the landscape appearance should be consistent with the current theme and existing fencing along Xerxes Avenue and Bass Lake Road. Councilmember Lawrence-Anderson stated a fence at that location might deter jaywalkers. Mr. Boganey stated the Traffic Committee is aware of the jaywalking problem in that area. Councilmember Ryan stated the landscaping plan in that area should provide a natural barrier and make jaywalking more difficult. Mr. Boganey agreed that jaywalking has been reduced because of the landscape plan, but jaywalking will continue to be a problem where there is landscape rock and no plantings. He added a creative solution might be necessary, and foot traffic patterns may change as the Shingle Creek Crossing develops to the east, creating more destinations. Mayor Willson stated clear fencing material might be a good solution, similar to the material used on one of the Highway 100 bridges. He added the clear material would not obstruct views. Mr. Boganey agreed, adding a physical barrier of some sort might be the answer. MISCELLANEOUS Staff Meeting with Invitation Homes, Inc. Councilmember Kleven requested further information regarding staff's recent meeting with Invitation Homes, a single-family homes rental organization, and their recent purchase of properties in Brooklyn Center. She expressed concern that there are currently 812 rental properties in the City, and the number continues to increase. Assistant City Manager/Director of Building and Community Standards Vickie Schleuning stated Invitation Homes plans to have approximately over 800 homes around the metro area, including 11 properties in Brooklyn Center. She added they will be providing a detailed list of their properties, which she agreed to forward to the Council. She noted Invitation Homes is an established rental company based in Chicago doing business in many states throughout the United States, but they have only recently entered the rental market in Minnesota. Ms. Schleuning stated the homes they purchase have multiple bids due to increased market activity. She added the company understands that their rentals will be subject to housing 10/28/13 -2- DRAFT inspections and it will be necessary for them to meet the City's housing standards. She noted that many properties are currently in the rehabilitation process and therefore most has not submitted rental license applications. Mr. Boganey stated the ordinance requires that a rental property have a local manager or overseer that can be contacted by City staff to address any issues. He added that any information regarding Invitation Homes' business practices in other states would not provide much value if rental requirements are different. Ms. Schleuning stated the company representatives live locally and are familiar with local markets and requirements. Councilmember Myszkowski stated the company's website provides a lot of information, as well as an online application and "Peace of Mind Promise." Mayor Willson stated he appreciates the fact that City staff are meeting with Invitation Homes early in the process, before any problems arise. Mr. Boganey stated staff wanted to make the Council aware of Invitation Homes and their activities in the City. Former Mayor Phil Cohen — Health Update and Possible Recognition Councilmember Ryan stated former Mayor Phil Cohen has had recent health issues after breaking his hip during a recent fall. He added it would be appropriate to recognize former Mayor Cohen's long-term contributions to the City of Brooklyn Center. He noted a plaque or sign might be included in the Veterans Memorial Amphitheater, for which a Spring 2014 groundbreaking is scheduled. Mayor Willson stated former Mayor Cohen broke his hip last Friday and is in a lot of pain, according to his family. He added that any action by the Council to recognize him should be done soon. Councilmember Myszkowski suggested consulting the family of former Mayor Cohen. Mayor Willson agreed to contact them. City Manager's Review Mr. Boganey stated the necessary forms for the annual City Manager's performance review were available for the Council to complete, which he would forward to them. Upcoming Trip to Voinjama, Liberia Mayor Willson stated that participants in the upcoming trip to Brooklyn Center's Sister City, Voinjama, Liberia, should begin making travel arrangements. Mr. Boganey stated City Clerk Knutson was doing some research on airfare and other arrangements, and staff will coordinate efforts with the trip participants. Mayor Willson stated he knows of a good travel agent in the Riverwood neighborhood that he would forward to the City Clerk. Mr. Boganey stated Monique Drier's 17-year-old son would be going to Voinjama with the contingent. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS COUNCIL REQUEST FOR RENTAL LICENSING STATISTICS 10/28/13 -3- DRAFT Mr. Boganey stated the Council had requested information on the City's rental licensing program, including background and statistics. Ms. Schleuning reviewed the City's performance-based rental licensing program, including background, goals and objectives, as well as improvements and statistics. She added the program was initiated due to rental property concerns, including complaints from both residents and landlords. She noted initial analysis showed that approximately 20% of the rental properties in question were creating 80% of the problems. Ms. Schleuning stated improvements in property conditions and management have been accomplished since the program's initiation in 2010. She added City staff has increased communication with landlords and tenants through newsletters, document improvements and tracking, and mandatory Association for Responsible Management (ARM) meetings. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Mayor Willson closed the Study Session at 6:45 p.m. RECONVENE STUDY SESSION Councilmember Ryan moved and Councilmember Myszkowski seconded to reconvene the Study Session at 6:49 p.m. Motion passed unanimously. COUNCIL REQUEST FOR RENTAL LICENSING STATISTICS — CONTINUED Ms. Schleuning reviewed the distribution of active rental licenses in the City in 2012, 2013, and projected distribution. She stressed that the information provided by staff does not include new pending or expired licenses currently in the renewal process. She added that commercial development has increased in Brooklyn Center, which has meant an increased workload, but staff continues to review ways to encourage growth and development within the City's rental licensing program. Mayor Willson thanked Ms. Schleuning for the report, adding the data is helpful and staff should be commended for taking the time to compile it. He also thanked City Clerk Sharon Knutson and the Licensing Department staff. Councilmember Ryan stated staffs hard work on the rental licensing program is greatly appreciated. He added the City has seen a dramatic decline in rental licensing problems over the last several years, which has coincided with the inception of the rental program. He thanked City staff and the Police Department for their accomplishments in this area. ADJOURNMENT Mayor Willson declared the Study Session adjourned at 6:58 p.m. 10/28/13 -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 REGULAR SESSION OCTOBER 28, 2013 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 Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Business and Development Gary Eitel, Planning and Zoning Specialist Tim Benetti, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum. Mark Carrell, 5341 Brooklyn Boulevard, stated he is concerned about the bus shelter near 55 th Avenue and Brooklyn Boulevard, which is close to his home. He added he has seen many illegal activities at the bus shelter, including drug use, fighting, and even a recent shooting. He noted that his home faces east and the bus shelter faces west, so people at the bus shelter have a direct view of his home. Mr. Carrell stated he knows that Allan Properties donated the bus shelter with the best intentions, but it is being used for the wrong reasons, and the bus shelter makes his neighborhood an unsafe place to live. He noted that another nearby bus stop has a bench but no shelter, and people only use it to wait for buses. He added that the shelter gives people a reason to linger for hours, and it should be looked at from a safety perspective. He urged the Council to consider whether it is necessary as well as safe to have a bus shelter at that location. He stated that he and many of his neighbors agree that the neighborhood would be a safer place without the bus shelter. Councilmember Kleven moved and Councilmember Lawrence-Anderson seconded to close the Informal Open Forum at 6:45 p.m. Motion passed unanimously. 2.INVOCATION 10/28/13 -1- DRAFT Councilmember Lawrence-Anderson offered a message of hope and perseverance in memory of her father, who died of cancer at the age of 60. 3.CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Tim Willson at 7:00 p.m. 4.ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Business and Development Gary Eitel, Planning and Zoning Specialist Tim Benetti, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. 5.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6.APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Myszkowski moved and Councilmember Ryan seconded to approve the Agenda and Consent Agenda, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1.October 14, 2013 — Study Session 2.October 14, 2013 — Regular Session 6b. LICENSES MECHANICAL All Systems Mechanical LLC Albers Mechanical MacDonald Heating and Air Conditioning Nassef Mechanical Contractors Woody's Heating & Air 2282 Terminal Road, Roseville 200 W. Plato Boulevard, St. Paul 11848 305 th Avenue, Princeton 122 S. Wabasha Street, St. Paul 300 Bates Avenue, St. Paul RENTAL — CURRENT RENTAL STANDARDS INITIAL (TYPE — one-year license) 5332 Irving Avenue N. Jack Kohler INITIAL (TYPE — two-year license) 6221 Shingle Creek Parkway / The Crest Apts. 5406 70 th Circle 6701 Bryant Avenue N. Christopher Nimmer Mohammed Aaser Natan Zadik 10/28/13 -2- DRAFT 5357 Colfax Avenue N. 5228 Ewing Avenue N. 7112 France Avenue N. 6807 Humboldt Avenue N. C104 5643 Knox Avenue N. 7200 Morgan Avenue RENEWAL (TYPE — one-year license) 1425 55 th Avenue N. 2841 67 th Lane N. RENEWAL (TYPE — two-year license) 3900 62'1 Avenue N. 5913 June Avenue N. 4201 Lakeside Avenue #209 5332 Lilac Drive N. Kin Chew Natan Zadik Patrick Higgins Raymond Charest Jason Flaa Dwayne Holmstrom Trung Duong Brooke Berner Did not complete CFHC Levi Dickie Mohammed Mehdi Robert Morgan Mark Lundberg SIGNHANGER Rose City Sign Company 31208 County Road 71, Eagle Bend 6c.RESOLUTION NO. 2013-127 SETTING 2014 EMPLOYER BENEFITS CONTRIBUTION FOR FULL-TIME NON-UNION EMPLOYEES 6d.RESOLUTION NO. 2013-128 APPROVING CONTRACT BETWEEN CORNERSTONE ADVOCACY AND PROJECT PEACE 6e. APPROVAL TO AMEND 2013 CITY COUNCIL MEETING CALENDAR RESCHEDULING THE NOVEMBER 4, 2013, BUDGET WORK SESSION WITH FINANCIAL COMMISSION TO NOVEMBER 18, 2013 Motion passed unanimously. 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 7a. PROCLAMATION DECLARING OCTOBER 28, 2013, TO BE DESIGNATED AS RANDOM ACTS OF KINDNESS DAY City Manager Curt Boganey introduced the item. He added that since 1997 the City has recognized random acts of kindness throughout the community that make Brooklyn Center a better place to live. Councilmember Kleven moved and Councilmember Lawrence-Anderson seconded to approve PROCLAMATION Declaring October 28, 2013, to be Designated as Random Acts of Kindness Day. -3- DRAFT10/28/13 Mayor Willson read in full a proclamation declaring October 28, 2013, to be designated as Random Acts of Kindness Day in the City of Brooklyn Center. Motion passed unanimously. 7b. RANDOM ACTS OF KINDNESS PRESENTATION OF RECOGNITION AND CERTIFICATE CEREMONY Councilmembers read nominations and Mayor Willson presented certificates to the following recipients in recognition of their Random Acts of Kindness: Jerry Evans, Joe Ericksen, Amanda Shemon and the students from North View Junior, Michael Nendza, Ray Wagner, Lois Dumonceaux, Steve Thoennes, Joan Thoennes, Paulette Houglum, Brett Ellard, Sandy McCormick, Ruth Tate, Diane Sannes, Jeffrey and DeLanna Delzer, Kim Read, Travis Bonovsky, Paul Fusco, Linda Hanka, Superintendent Bonine, and School Board Member Jechorek. Mayor Willson extended the City Council's congratulations to all recipients and thanked them for making Brooklyn Center a better community. He stressed the importance of recognizing Random Acts of Kindness, as they are important to Brooklyn Center and its residents. 8.PUBLIC HEARINGS —None 9.PLANNING COMMISSION ITEMS 9a. PLANNING COMMISSION APPLICATION NO. 2013-021 SUBMITTED BY GATLIN DEVELOPMENT COMPANY. REQUEST FOR PRELIMINARY PLAT APPROVAL OF SHINGLE CREEK CROSSING 4 TH ADDITION LOCATED IN THE SHINGLE CREEK CROSSING PUD PROPERTIES Planning and Zoning Specialist Tim Benetti provided an overview of Planning Commission Applications No. 2013-021 and advised the Planning Commission recommended approval of the applications at its October 17, 2013, meeting. 1. RESOLUTION NO. 2013-129 REGARDING DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2013-021 SUBMITTED BY GATLIN DEVELOPMENT COMPANY, A REQUEST FOR PRELIMINARY PLAT OF SHINGLE CREEK CROSSING 4 TH ADDITION Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to approve RESOLUTION NO. 2013-129 regarding disposition of Planning Commission Application No. 2013-021 submitted by Gatlin Development Company, a request for preliminary plat of Shingle Creek Crossing 4 th Addition. Motion passed unanimously. 10/28/13 -4- DRAFT 9b.PLANNING COMMISSION APPLICATION NO. 2013-017 SUBMITTED BY HALLE PROPERTIES, LLC. REQUEST FOR SITE AND BUILDING PLAN APPROVAL OF A NEW 7,322 SQ. FT. DISCOUNT TIRE STORE FOR BUILDING PAD A WITHIN THE SHINGLE CREEK CROSSING PLANNED UNIT DEVELOPMENT PROJECT Mr. Benetti provided an overview of Planning Commission Application No. 2013-017 and advised the Planning Commission recommended approval of the application at its October 17, 2013, meeting. Mr. Benetti stated, with regard to the two access points on the property, staff was concerned that the entry points were too narrow to allow garbage truck access. He added the applicant provided a revised plan today with which the City Engineer is satisfied. He noted the new revised plan also includes additional landscaping materials near the trash enclosure. Mayor Willson stated that the Council agreed at its Study Session that the resolution should include the following stipulation: "The Developer shall submit a landscaping and fence plan subject to review and approval by City staff." City Attorney Charlie LeFevere agreed. 1. RESOLUTION NO. 2013-130 REGARDING THE DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2013-017 SUBMITTED BY HALLE PROPERTIES, LLC AND GATLIN DEVELOPMENT COMPANY, REQUESTING THE APPROVAL OF SITE AND BUILDING PLAN FOR THE NEW DISCOUNT TIRE STORE, LOCATED ON BUILDING PAD SITE A OF THE SHINGLE CREEK CROSSING PLANNED UNIT DEVELOPMENT (1450 SHINGLE CREEK CROSSING) Councilmember Ryan moved and Councilmember Myszkowski seconded to approve RESOLUTION No. 2013-130 Regarding the Disposition of Planning Commission Application No. 2013-017 Submitted by Halle Properties, LLC and Gatlin Development Company, Requesting the Approval of Site and Building Plan for the New Discount Tire Store, located on Building Pad Site A of the Shingle Creek Crossing Planned Unit Development (1450 Shingle Creek Crossing) with the requirement that the Developer shall submit a landscaping and fence plan subject to review and approval by City staff Motion passed unanimously. 9c.PLANNING COMMISSION APPLICATION NO. 2013-022 SUBMITTED BY AVIS-BUDGET GROUP. REQUEST FOR SPECIAL USE PERMIT APPROVAL TO ALLOW BUDGET RENTAL TRUCKS TO BE STORED AND LEASED FROM THE EXISTING AVIS AUTO RENTAL FACILITY, LOCATED IN THE SEARS AUTOMOTIVE CENTER BUILDING AND PROPERTIES Mr. Benetti provided an overview of Planning Commission Application No. 2013-022 and advised the Planning Commission recommended approval of the application at its October 17, 2013, meeting. 10/28/13 -5- DRAFT Mr. Benetti answered questions of the City Council regarding the request of Avis-Budget Group for special use permit approval to allow Budget Rental trucks to be stored and leased from the existing Avis Auto rental facility, located in the Sears Automotive Center building and properties. The Council discussed the proposed parking/storage location for the Budget rental trucks, directly in front of the rental facility. It was noted that trucks will be visible to traffic entering the Shingle Creek Crossing development. Mr. Benetti stated the applicant has indicated that trucks will not be parked there all the time, and there is little traffic in that area in any case. Councilmember Myszkowski stated she is concerned that the industrial image presented by the rental center and proposed truck storage is not the image that the City wishes to convey. She added this issue was the subject of discussion at tonight's Study Session with regard to the City's rental licensing program. She stressed the importance of the appearance of a premier shopping development that the City has worked so hard to convey. Councilmember Ryan agreed, adding the rental trucks should be left in their current location behind the Pep Boys building. Mayor Willson stated, with regard to the current arrangement, the applicant should show a better awareness of the appropriate and allowed location for the trucks, as they continue to be moved to the front of the Pep Boys building. Mr. Benetti stated staff was unable to find any reference to a Special Use Permit for Pep Boys to store the trucks behind their building. Councilmember Ryan suggested the Council consider a Special Use Permit for Pep Boys to store the trucks. Mr. Benetti stated Budget has indicated that they wish to sever the relationship with Pep Boys. The Council agreed that trucks should not be allowed to be parked in front of the Budget location. Mr. LeFevere stated the Council should direct staff to make preparation of findings for denial of the application. Councilmember Ryan moved and Councilmember Kleven seconded to direct staff to present findings for denial of Planning Commission Application No. 2013-022 for Special Use Permit to allow Budget Rental trucks to be stored and leased from the existing Avis Auto rental facility, located in the Sears Automotive Center Building and Properties. Motion passed unanimously. 10. COUNCIL CONSIDERATION ITEMS 10a. CONSIDERATION OF TYPE IV 6-MONTH PROVISIONAL RENTAL LICENSE FOR 5563 HUMBOLDT AVENUE NORTH 10/28/13 -6- DRAFT Mayor Willson polled the audience and asked whether anyone was in attendance to provide testimony on this rental license. Seeing no one coming forward, Mayor Willson called for a motion. Councilmember Lawrence-Anderson moved and Councilmember Myszkowski seconded to approve the issuance of a Type IV six-month provisional rental license and mitigation plan for 5563 Humboldt Avenue North, with the requirement that the mitigation plan and all applicable ordinances must be strictly adhered to before a renewal rental license would be considered. Motion passed unanimously. 10b. CONSIDERATION OF TYPE IV 6-MONTH PROVISIONAL RENTAL LICENSE FOR 5500 BRYANT AVENUE NORTH Assistant City Manager/Director of Building and Community Standards Vickie Schleuning advised that 5500 Bryant Avenue North was inspected and 17 property code violations were cited and ultimately corrected. There has been 1 validated police incident within the last 12 months. This property qualifies for a Type IV six-month provisional rental license based on the number of property code violations found during the initial rental license inspection. The property owner is also required to submit a mitigation plan and report monthly on the progress of that plan. Ms. Schleuning reviewed actions taken in regard to this rental license application and indicated Staff has reviewed that mitigation plan and held discussion with the property owner and recommends approval based on meeting standards in the mitigation plan and all applicable ordinances. Councilmember Ryan moved and Councilmember Myszkowski seconded to open the hearing. Motion passed unanimously. Brad Notenberg, 3450 Lexington Avenue N, Suite 100, Shoreview, stated he is the owner of the property. He expressed his frustration that the 17 violations were minor. He added they were due to miscommunication when a staff member left his company. Mr. Notenberg stressed that he has had a long-standing relationship with the City through which he has shown his understanding of the process and commitment to quality property management. Councilmember Myszkowski moved and Councilmember Ryan seconded to close the hearing. Motion passed unanimously. Councilmember Kleven moved and Councilmember Lawrence-Anderson seconded to approve the issuance of a Type IV six-month provisional rental license and mitigation plan for 5500 Bryant Avenue North, with the requirement that the mitigation plan and all applicable ordinances must be strictly adhered to before a renewal rental license would be considered. Motion passed unanimously. 10/28/13 -7- DRAFT 10c. CONSIDERATION OF TYPE IV 6-MONTH PROVISIONAL RENTAL LICENSE FOR 5820 LOGAN AVENUE NORTH Mayor Willson polled the audience and asked whether anyone was in attendance to provide testimony on this rental license. Seeing no one coming forward, Mayor Willson called for a motion. Councilmember Myszkowski moved and Councilmember Ryan seconded to approve the issuance of a Type IV six-month provisional rental license and mitigation plan for 5820 Logan Avenue North, with the requirement that the mitigation plan and all applicable ordinances must be strictly adhered to before a renewal rental license would be considered. Motion passed unanimously. 11. COUNCIL REPORT Councilmember Ryan reported on his attendance at the following and provided information on the following upcoming events: •October 21, 2013, City Council Joint Budget Work Session with Financial Commission •October 24, 2013, MN-DNR Mississippi Critical Corridor Study meeting •October 24, 2013, Ribbon Cutting ceremony at LA Fitness, Shingle Creek Crossing •October 24, 2013, Metropolitan Council's 2040 Plan meeting Councilmember Kleven reported on her attendance at the following and provided information on the following upcoming events: •October 16, 2013, Community Mediation and Restorative Services' Multicultural Mediation Open House •October 17, 2013, Brooklyn Center Planning Commission meeting •October 19, 2013, Three Rivers Park Sampler at Sochacki Park •October 21, 2013, City Council Joint Budget Work Session with Financial Commission •October 24, 2013, Ribbon Cutting ceremony at LA Fitness, Shingle Creek Crossing •October 24, 2013, Thrive MSP 2040 meeting •October 26, 2013, "National Take Back Initiative Day" press conference hosted by Hennepin County Sherriff s Office and US Senator Amy Klobuchar, encouraging the disposal of unused and unwanted medications •Meeting and film on human trafficking, featuring Nigerian-born Bukola Oriola, author of "Imprisoned," about her experience as a prisoner in 2007 in Minneapolis •October 28, 2013, Qdoba Grand Opening •November 2, 2013, Senior Surf Day at Brookdale Library from 1-3 p.m. •November 1-7, 2013, Pumpkin Recycling at Cub Foods •November 2013, Breast Cancer Awareness Month at Curves •Congratulations to Kate Maguire on being named Minnesota Association of School Administrators' 2014 Superintendent of the Year -8- DRAFT10/28/13 Councilmember Myszkowski reported on her attendance at the following and provided information on the following upcoming events: •October 15, 2013, Housing Commission "Welcome Bags" delivery •October 21, 2013, City Council Joint Budget Work Session with Financial Commission •October 24, 2013, Northwest Hennepin Family Service Center's Health Fair •October 24, 2013, Executive Committee Meeting •October 26, 2013, Ribbon Cutting Ceremony at LA Fitness, Shingle Creek Crossing •October 28, 2013, Qdoba Grand Opening •Congratulations to Kate Maguire on being named Minnesota Association of School Administrators' 2014 Superintendent of the Year Councilmember Lawrence-Anderson reported on her attendance at the following and provided information on the following upcoming events: •October 15, 2013, Park and Recreation Commission Meeting •October 24, 2013, Department of Public Safety Driver's Education Program Launch •October 26, 2013, Ribbon Cutting Ceremony at LA Fitness, Shingle Creek Crossing •October 21, 2013, City Council Joint Budget Work Session with Financial Commission •October 28, 2013, Qdoba Grand Opening •October 29, 2013, Latino Cultural Event at Brooklyn Center High School which coincides with MAC meeting at the same time/location Mayor Willson reported on his attendance at the following and provided information on the following upcoming events: •October 21, 2013, City Council Joint Budget Work Session with Financial Commission •October 26, 2013, Ribbon Cutting Ceremony at LA Fitness, Shingle Creek Crossing •October 26, 2013, Pre-Opening Party at Qdoba, including fundraising on behalf of BCHS Centaurs •October 28, 2013, Qdoba Grand Opening, including Mayor's First Burrito Bite Mayor Willson stated that he currently sits on the Board of the Firefighters Relief Association. He added they have received State funding based on an insurance payment, but the City is not obligated to transfer funds as the Association is self-funded. Mayor Willson stated he plans to attend the National League of Cities' Annual Conference in Seattle, Washington, from November 13-16, 2013. He added the organization is interested in the Brooklyn Bridge Alliance. Mayor Willson stated he will be joining a contingent including Councilmember Myszkowski, Mr. Boganey, and Monique Drier on a visit to Voinjama, Liberia, from January 18-26, 2014. 12. ADJOURNMENT Councilmember Ryan moved and Councilmember Myszkowski seconded adjournment of the City Council meeting at 8:24 p.m. 10/28/13 -9- DRAFT Motion passed unanimously. 10/28/13 -10-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 OCTOBER 28, 2013 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 9:06 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building & Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. REVIEW OF PROPOSED AMENDMENT TO TAX INCREMENT DISTRICT 3 BUDGET AND SALES OF A TAX INCREMENT BOND City Manager Curt Boganey reviewed the proposed amendment to Tax Increment District 3. Tom Deneway, Springsted, provided a general overview of the budget and the sale of a tax increment bond. He added a Public Hearing would be held on this issue on November 12, 2013. He reviewed TIF District 3, which was established in 1994 and encompasses almost the entire City. He noted that tax pooling dollars can only be spent within the TIF District or project area, and 15% of the increment goes into the Affordable Housing Fund. Mr. Deneway stated the proposed modification to TIF District 3 provides the necessary budget authority to allow the City to maximize eligible use of the increment. He added that pooling of tax increment money requires a corresponding budget line item to allow allocated funding to be spent. Councilmember/Commissioner Ryan asked, with regard to cash flow for bond issues, whether the TIF District would still be able to retire its debt by 2021. Mr. Deneway confirmed this, adding that is statutorily required in any case. Councilmember/Commissioner Ryan stated he appreciates the conservative assumptions as presented. Mayor/President Willson expressed his support of the modification, adding the plan is good economic strategy that fits well with the City's redevelopment plan. -1- DRAFT10/28/13 Councilmember/Commissioner Myszkowski agreed, stating the evening's agenda represents a variety of items that reflect the City's vision and plans for its future development. Councilmember/Commissioner Kleven concurred. The consensus of the City Council/EDA was unanimous support of the TIF District 3 amendment. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Kleven seconded adjournment of the City Council/Economic Development Authority Work Session at 9:35 p.m. Motion passed unanimously. 10/28/13 -2- DRAFT City Council Agenda Item No. 6b COUNCIL ITEM MEMORANDUM DATE: November 5, 2013 TO: Curt Boganey, City Manager 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 November 12, 2013. 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. GARBAGE HAULER — Additional Truck Jate Mies Inc. MECHANICAL Cashion HVAC Services Dean's Professional Plumbing Inc. Faircon Service Company JR Crew Enterprises, dba So Metro Plumbing RENTAL See attached report. SIGN HANGER Mathey Sign & Design 8289 Mississippi Boulevard, Coon Rapids 4148 Jansen Avenue NE, St. Michael 7400 Kirkwood Court N, Maple Grove 764 Vandalia Street, St. Paul 26148 Newton Circle, Elko 831 Coon Rapids Boulevard, Coon Rapids Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust 3+ units 0-0.75 3+ units Greater than Property Code and Nuisance Violations Criteria License Category (Based on Property Code Only) Number of Units Property Code Violations per Inspected Unit Type I — 3 Year 1-2 units 0-1 Type 11-2 Year 1-2 units 3+ units Greater than 1 but not more than 4 Greater than 0.75 but not more than 1.5 Type III — 1 Year 1-2 units 3+ units Greater than 4 but not more than 8 Greater than 1.5 but not more than Type IV —6 Months 1-2 units GrcLacr than 8 COUNCIL ITEM MEMORANDUM Rental License Category Criteria Policy — Adopted by City Council 03-08-10 License Category Number of Units Validated Calls for Disorderly Conduct Service & Part I Crimes (Calls Per Unit/Year) No Category Impact 1-2 0-1 3-4 unit s 0-0.25 5 or more units 0-0.35 Decrease 1 Category , 1-2 Greater than 1 but not more than 3 3-4 units Greater than 0.25 but not mote than 1 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 Categories 1-2 Greater than 3 3-4.units..Greater than 5 or more unitsGreater than 0.50 Budget Issues: There are no budget issues to consider. 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Z <1.)>< P COo01LO 'ccc Z CI)>< —DriN0I-, Z CD>< n tr)v)‘-11.--- LO (-)(1) :3 0. co l- (L)a)c 0.co4-,4-, City Council Agenda Item No. 6c COUNCIL ITEM MEMORANDUM DATE: November 5, 2013 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works/City Engineer S -Cf- SUBJECT: Resolution Establishing the Interest Rate for 2014 Special Assessments Recommendation: It is recommended that the City Council approve the attached resolution establishing the interest rate for 2014 special assessments at 6.0 percent. Background: Each year the City Council sets an interest rate for special assessments levied against properties based on the City's Special Assessment and Internal Loan Interest Rate Policy. The objective of this policy is to establish an equitable interest rate that will not unfairly burden the property owner but also recover the cost of borrowing from outside sources, recover the cost of administering the special assessments and protect the City from the possibility that special assessment prepayments might impair the City's ability to service the bonds. City Council policy has been to establish the special assessment interest rate by calculating the sum of the interest rate for the most recent general obligation bond, adding two (2) percent to cover the overhead costs described above, and rounding to the nearest one-half percent in accordance with the Interest Rate Policy. The most recent improvement bond sale by the City of Brooklyn Center was Series 2008B General Obligation Improvement Bonds at 3.87 percent, resulting in a special assessment interest rate of 6.0 percent for 2014. The 2014 rate is consistent with the 2013 rate, which was also 6.0 percent Budget Issues: There are no budget issues to consider. Strategic Priorities: * Financial Stability . . . . . Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING THE INTEREST RATE FOR 2014 SPECIAL ASSESSMENTS WHEREAS, the City Council levies special assessments for certain neighborhood street and utility projects, delinquent utility bills and other services provided to property owners that go unpaid; and WHEREAS, amounts outstanding are certified to Hennepin County for collection with property taxes; and WHEREAS, by City Policy, interest is to be charged on outstanding amounts certified to Hennepin County for collection with property taxes; and WHEREAS, the interest rate to be charged is two percent over the net interest rate for the most recent City General Obligation bond sale rounded up to the next one-half percent; and WHEREAS, the most recent General Obligation bond sale resulted in a net interest rate of 3.87 percent. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the interest rate charged on outstanding special assessments for the year 2014 is hereby established at 6.0 percent. November 12, 2013 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: November 5, 2013 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works/City Engineer SUBJECT: Resolution Establishing 2014 Street and Storm Drainage Special Assessment Rates Recommendation: It is recommended that the City Council consider approval of the resolution establishing the 2014 street and storm drainage special assessment rates for City street and utility improvement projects. Background: Each year the City Council establishes assessment rates for R1, R2, and R3 residential zoned properties based on the City's Special Assessment Policy. Within these zoning districts, the assessment rate for street and storm drainage improvements is based on a unit amount that applies to all single family residential properties. The unit amount represents a specific portion of the average cost for reconstructing a typical residential street and storm drainage system. Street assessments for non-residential and R4 to R7 residential properties are computed separately for each project. Special assessment rates are typically adjusted each year to reflect normal inflationary increases in construction costs. The City's Special Assessment Policy indicates that, "the unit assessment shall be adjusted annually to reflect cost of living increases as measured by the Construction Index" (see Section II — 2.10.2.B.1.a.2). The ENR Construction Cost Index has experienced an average annual percent change for 2013 of 2.7 percent (see Table 1). Table 1. ENR Construction Cost Index - 12-Month Average Annual Percent Change Year 2007 20082009 2010 2011 2012 2013* 12-mo avg. annual % change 1.55.3 0.3 3.6 1.3 3.7 2.7 Source: Engineering News Record website, November 4, 2013 Note: * 11 month average As a comparison, the Consumer Price Index has experienced an average annual percent change for 2013 of 1.5 percent (see Table 2). Table 2. Consumer Price Index - 12-Month Average Annual Percent Change Year 2007 20082009 2010 2011 2012 2013* 12-mo avg. annual % change 2.7 3.7 -0.6 2.0 3.2 2.0 1.5 Source: US Department of Labor, Bureau of Labor Statistics website, November 4, 2013 Note: * 9 month average . _ Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for people and preserves the public trust COUNCIL ITEM MEMORANDUM Based on the 2013 information above, staff recommends adjusting the special assessment rates by an increase of 2.7 percent for 2014, which will be an increase of $131 from the 2013 total assessment amount. This should continue to maintain the portion of street and storm drainage costs that are assessed at approximately 40 percent of the total cost for street and storm drainage improvements. The City Council has historically targeted 40 percent as the portion of street and storm drainage improvements that are assessed to adjoining R1, R2, and R3 residential properties. Budget Issues: Increasing the 2013 special assessment rates for 2014 would result in an assessment amount of $3,832 for street improvements and $1,150 for storm drainage improvements. The total assessment amount would be $4,982 per R1 single family residential lot in 2014 compared to $4,851 in 2013. The attached resolution provides the corresponding adjustments for R2 and R3 zoned properties based on the proposed unit assessment rate. Strategic Priorities: 0 Financial Stability , Mission: Ensuring an attractive, clean, sale, inclusive community that enhances the quality of life for people and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING 2014 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES WHEREAS, the residential assessment rates for street and storm drainage improvements are annually reviewed and approved by the City Council; and WHEREAS, the residential assessment rates should be adjusted annually to be effective January 1; and WHEREAS, the 2014 street and storm drainage assessment rates for R1, R2, and R3 zoned districts are based on a specific proportion of approximately 40 percent of the average cost for street and storm drainage improvements; and WHEREAS, the R4, R5, R6, and R7 zoned districts will continue to be assessed based on an evaluation of project cost and project benefit. NOW:THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1.The residential street and storm drainage special assessment rates for street reconstruction shall apply to properties in R1, R2 or R3 zoned districts. These rates shall also be applied to parcels of property in other land use zones when such parcels (a) are being used as one-family or two-family residential sites at the time the assessment roll is levied; and (b) could not be subdivided under the then-existing Subdivision Ordinance. 2.The residential assessment rates for street and storm drainage reconstruction effective January 1, 2014, shall be as follows: Land Use 2014 Assessment Rates R1 zoned, used as one-family site that cannot be subdivided Land Use R2 zoned, or used as a two-family site that cannot be subdivided $3832.00 per lot (street) $1150.00 per lot (storm drainage) 2014 Assessment Rates $51.0933 per front foot with a $3832.00 per lot minimum (street $15.3333 per front foot with a $1150.00 per lot minimum (storm drainage) RESOLUTION NO. R3 zoned (per unit) Assessable frontage x $51.0933 (street) Number of residential units Assessable frontage x $15.3333 (storm) Number of residential units 3. The residential assessment rates for street and storm drainage reconstruction shall not apply to R4, R5, R6 or R7 zoned districts. The assessment rates for street reconstruction for R4, R5, R6 or R7 zoned property shall be based on an evaluation of the project cost and the project benefit for each project. November 12, 2013 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: November 5, 2013 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works/City Engineer SUBJECT: ResolutionResolution Authorizing the Execution of an Agreement for Participation in the Roadside Enhancement Partnership Program for the Brooklyn Boulevard/Highway 100 Bridge Reconstruction project between Hennepin County and the City of Brooklyn Center Recommendation: It is recommended that the City Council consider approval of a resolution authorizing the execution of an agreement for participation in the Roadside Enhancement Partnership Program for the Brooklyn Boulevard and Highway 100 bridge reconstruction project between Hennepin County and the City of Brooklyn Center Background: On June 10, 2013, the Brooklyn Center City Council considered options pertaining to the Minnesota Department of Transportation's (MnDOT) Highway 100 bridge redecking project at Brooldyn Boulevard, specifically the aesthetics, trail improvements and the City's funding participation. The Council provided direction to proceed with the following option: Option 2 •Adds an additional girder to the pedestrian bridge structures. This allows additional weight to be added to the outer side of the pedestrian bridges, allowing the architectural stone wall section to be moved to the very outside of the pedestrian bridge with the ornamental railing and lighting on top of the stone wall. This option eliminates any visual obstruction of the stone wall. o Trails would maintain the existing width of approximately 8-ft. o Due to the enhancement of architectural elements and exceeding MnDOT's allotment for architectural elements, additional local funding sources would be needed for this option in the amount of approximately $227,000. MnDOT is currently working with the City on the agreement that will include details pertaining to the construction, funding, operation and maintenance responsibilities of each party, similar to the agreement for Highway 100 at the Bass Lake Road/County Road 57 bridge. The City's responsibilities will generally include maintaining the sidewalks/trails, streetscaping improvements and street lighting. Once complete, this agreement between the City and MnDOT will be presented to the Council for final consideration and execution. An additional directive of the Council was to approach the County to discuss funding partnership opportunities available and their possible contribution to the required local share amount. In response to the City's request for partnership, the County has agreed to participate in the cost in the amount of $25,400 under Hennepin County's Roadside Enhancement Partnership Program (REPP). Mission: Ensuring- an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust COUNCIL ITEM MEMO NDUM Hennepin County has prepared a cost participation agreement that details the construction and cost responsibilities of each party. The agreement has been reviewed by the City Attorney and is adequate in form and content. Budget Issues: Approval of the cost participation agreement secures $25,400, an amount that will be used to reduce the City's total project cost of $227,000. The reduced amount ($201,600) will be the City's share, which has been programmed and is available in TIF District 2 as part of the Brooklyn Boulevard Corridor improvements. Strategic Priorities: 0 Financial Stability Mission: Ensuring an attractive, clean, safe, inclusive connnuni4 , that enhances the quality of life for people and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR PARTICIPATION IN THE ROADSIDE ENHANCEMENT PARTNERSHIP PROGRAM FOR THE BROOKLYN BOULEVARD/HIGHWAY 100 BRIDGE RECONSTRUCTION PROJECT BETWEEN HENNEPIN COUNTY AND THE CITY OF BROOKLYN CENTER WHEREAS, the City of Brooklyn Center ("City") and Hennepin County ("County") have been working cooperatively with the Minnesota Department of Transportation (MnDOT) to advance the project to provide streetscape and trail improvements to the Brooklyn Boulevard and Highway 100 bridge redecking project; and WHEREAS, the Project is multi-jurisdictional, involving funding by MnDOT, Hennepin County and the City; and WHEREAS, the City intends to pay for the City's portion of the project under TIF District 2 funding; and WHEREAS, the project bid letting is scheduled for early 2014 and construction to commence spring 2014; and WHEREAS, the City and Hennepin County desire to set forth their various construction and cost responsibilities in an agreement under the provisions of Minnesota Statute, Section 471.59. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The provisions of the Hennepin County Agreement No. PW 36-02-13, an Agreement for Participation in Roadside Enhancement Partnership Program between the City of Brooklyn Center and Hennepin County is hereby accepted and approved, and the Mayor and City Manager are hereby authorized and directed to execute said agreement. RESOLUTION NO. 2. The project costs and funding sources are hereby established as follows: Estimated Expenditures Amount Total Costs $1,978,000 Estimated Funding Amount MnDOT $1,751,000 Hennepin County $ 25,400 City Sources $ 201,600 Total Revenues $1,978,000 November 12, 2013 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. Agreement No. PW 36-02-13 County Project No. 1327 County State Aid Highway No. 152 City of Brooklyn Center County of Hennepin AGREEMENT FOR PARTICIPATION IN RO 1 SIDE ENHANCEMENT PARTNERSHIP PROGRAM THIS AGREEMENT, Made and entered into this day of , 20 by and between the County of Hennepin, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "County", and the City of Brooklyn Center, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "City". WITNESSETH: WHEREAS, the Minnesota Department of Transportation (MnDOT) is preparing a project to re-deck and construct improvements to the County State Aid Highway No. (CSAH) 152 (Brooklyn Boulevard) bridge over Trunk Highway (TH) 100 (State Project No. 2755-27308; County Project No. 1327), and hereinafter referred to as the Project; and WHEREAS, the above described project lies within the corporate limits of the City; and WHEREAS, the City and the County have been working with MnDOT to improve the visual appeal of the bridge; and WHEREAS, MnDOT has agreed to incorporate desired aesthetic elements into the Project that will improve the visual appeal of CSAH 152 to the road user; and WHEREAS, the City will reimburse MnDOT the costs to incorporate the desired aesthetic elements into the Project; and WHEREAS, the County desires to reimburse the City for its share of the costs to incorporate said aesthetic elements into the Project; and WHEREAS, the Project is eligible for cost participation under Hennepin County's Roadside Enhancement Partnership Program (REPP); and \AA-, Agreement No. PW 36-02-13 CSAH 152, C.P. 1327 WHEREAS, the County, under its Roadside Enhancement Partnership Program, will participate in the costs of for the desired aesthetic elements to CSAH 152 to be incorporated into the Project; and WHEREAS, construction of the Project by MnDOT is anticipated in calendar year 2014; and WHEREAS, it is contemplated that said work be carried out by the parties hereto under the provisions of Minnesota Statutes, Section 162.17, Subdivision 1 and Section 471.59. NOW THEREFORE, IT IS HEREBY AGREED: It is understood by the parties that MnDOT will prepare the necessary plans, specifications, and proposal; obtain approval of said plans and specifications from the County; advertise for bids for the work and construction, receive and open bids pursuant to said advertisement and enter into a contract with the successful bidder; administer the contract; and perform the required engineering and inspection; all in accordance with said plans and specifications. The County Engineer and representative staff shall have the right, as the work progresses, to enter upon the premises to make any inspections deemed necessary and shall cooperate with MnDOT and City staff to the extent necessary. It is understood and agreed by the City and the County that the following aesthetic components designed to improve the visual appearances of the CSAH 152 over Til 100, as shown in the plans and specifications for the Project, will be incorporated into the Project: O ornamental railing O ornamental light poles and fixtures O ornamental pilasters (for the light poles) The estimated cost for the above mentioned aesthetic components is $76,310.00. II The County, through its Roadside Enhancement Partnership Program (REPP), will participate in its share of the costs for the aesthetic components included in the Project as specified in Article One herein. Said reimbursement shall be equal to thirty three percent (33%) of the costs to install said ornamental railing, ornamental light poles and fixtures, and ornamental pilasters as part of the Project. For informational purposes only, the County's share of costs is estimated to be $25,400.00. It is further understood and agreed by the City that the County's share of the costs for the Project shall not exceed Thirty Thousand Dollars and No Cents ($30,000.00) without an amendment to this Agreement. Agreement No. PW 36-02-13 CSAH 152, C.P. 1327 Upon completion of the Project and approval of the completed Project by the County Engineer or designated representative, the City shall invoice the County for one hundred percent (100%) of the County's share of the costs for the Project. It is understood and agreed that upon completion of the Project all ornamental railing, street and pedestrian lighting included in the Project shall not be the property of the County and all maintenance, restoration, repair, replacement or other work or services required thereafter shall not be the responsibility of County and shall be performed by the City at no expense to the County. IV All records kept by the City and the County with respect to the Project shall be subject to examination by the representatives of each party hereto. V Each party agrees that it will be responsible for its own acts and the results thereof, to the extent authorized by the law, and shall not be responsible for the acts of the other party and the results thereof The County's and. the City's liability is governed by the provisions of Minnesota Statutes, Chapter 466. The County and the City each warrant that they are able to comply with the aforementioned indemnity requirements through an insurance or self-insurance program. VI The City agrees to defend, indemnify and hold harmless the County, its officials, officers, agents, volunteers and employees, from any liabilities, ,claims, causes of action, judgments, damages, losses, costs or expenses, including, reasonable attorneys' fees, resulting directly or indirectly from any act or omission of the City, its contractors, anyone directly or indirectly employed by them, and/or anyone for whose acts and/or omissions they may be liable for related to the ownership, maintenance, existence, restoration, repair or replacement of the City owned improvements constructed as part of the Project. The City's liability shall be governed by the provisions of Minnesota Statutes, Chapter 466 or other applicable law. The County agrees to defend, indemnify, and hold harmless the City, its officials, officers, agents, volunteers, and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including reasonable attorneys' fees, resulting directly or indirectly from any act or omission of the County, its contractors, anyone directly or indirectly employed by them, and/or anyone for whose acts and/or omissions they may be liable related to the ownership, maintenance, existence, restoration, repair or replacement of the County owned improvements constructed as part of 3 Agreement No. PW 36-02-13 CSAH 152, C.P. 1327 the Project. The County's liability shall be governed by the provisions of Minnesota Statutes, Chapter 466 or other applicable law. VII It is further agreed that any and all employees of the City and all other persons engaged by the City in the performance of any work or services required or provided for herein to be performed by the City shall not be considered employees of the County, and that any and all claims that may or might arise under the Minnesota Economic Security Law or the Workers' Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said employees while so engaged on any of the work or services provided to be rendered herein shall in no way be the obligation or responsibility of the County. Also, any and all employees of the County and all other persons engaged by the County in the performance of any work or services required or provided for herein to be performed by the County shall not be considered employees of the City, and that any and all claims that may or might arise under the Minnesota Economic Security Law or the Workers' Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said employees while so engaged on any of the work or services provided to be rendered herein shall in no way be the obligation or responsibility of the City. VIII In order to coordinate the services of the County with the activities of the City so as to accomplish the purposes of this Agreement, the Hennepin County Engineer or designated representative shall manage this Agreement on behalf of the County and serve as liaison between the County and the City. In order to coordinate the services of the City with the activities of the County so as to accomplish the purposes of this Agreement, the Director of Public Works/City Engineer or designated representative shall manage this Agreement on behalf of the City and serve as liaison between the City and the County. IX It is understood and agreed that the entire Agreement between the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. Any alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. 4 \iv Agreement No. PW 36-02-13 CSAH 152, C.P. 1327 X The whereas clauses are incorporated herein and are hereby made a part of this Agreement. 'XI The provisions of Minnesota Statutes 181.59 and of any applicable local ordinance relating to civil rights and discrimination and the Affirmative Action Policy statement of Hennepin County shall be considered a part of this Agreement as though fully set forth herein. (this space left intentionally blank) 5 Date: APPROVED AS TO EXECUTION: Agreement No. PW 36-02-13 CSAH 152, C.P. 1327 IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers as of the day and year first above written. CITY OF BROOKLYN CENTER (Seal) By: Mayor Date: And: Manager Date: COUNTY OF HENNEPIN ATTEST: By: By: Deputy/Clerk of the County Board Chair of its County Board Date: Date: APPROVED AS TO FORM: And: County Administrator By: Date: Assi4ani County Attorney And: Assistant County Administrator, Public Works Date: RECOMMENDED FOR APPROVAL By: By: Assistant County Attorney Director, Transportation Department and County Engineer Date: Date: gi7VN371.4 FLIVd CICre-AVile?. 031107d Lh'STll 3411 City Council Agenda Item No. 8a COUNCIL ITEM IVEMO NIDUM DATE: November 12, 2013 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Approving A Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 and A Modification of Tax Increment Financing District No. 3, and Adopting a Modified Tax Increment Financing Plan Therefor Recommendation: It is recommended that the City Council consider approval/adoption of the Resolution Approving A Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 and A Modification of Tax Increment Financing District No. 3, and Adopting a Modified Tax Increment Financing Plan Therefor. Background Information: On September 23, 2013, the City Council adopted Resolution No 2013-115, A Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Modification of Tax Increment Financing District No. 3, and the Adoption of a Modification to Tax Increment Financing Plan. On October 28, 2013, the City Council/EDA's work session included a presentation by Tom Denaway, Analyst within the Management Consulting Services of Springsted Incorporated, the City's Financial Consultant, on their analysis on this amendment to the Tax Increment District No. 3 Plan and the proposed sales of Tax Increment Revenue Bonds to fund the EDA's acquisitions of properties within the Opportunity Site and Brooklyn Boulevard Corridor. The required advance notices to our County Commissioner, the County Board, and each of the four School Districts have been completed and a notice of the November 12, 2013 public hearing was published in the City's Official newspaper. Tom Denaway will be present to make the formal presentation of the proposed Tax Increment Plan Amendment prior to the opening of the public hearing and to respond to questions. Jenny Boulton, the City Attorney advising on Tax Increment and Bond related matters, has prepared the attached Resolution for the Council's consideration to formally adopt the proposed plan modifications. Attached is a copy of the proposed Tax Increment Plan Amendment, and for your reference, copies of the staff memorandum, which accompanied the Resolution calling for the public hearing, and the October 28 th staff memorandum which accompanied the Council Work Session item/presentation by Springsted. filission: Ensuring an attractive, clean, sole, inclusive community that enhances the quality of life for all people and preserves the public trust COUNCIL ITEM MEMORANDUM Budget Issues: The budget issues related to the proposed modifications to Tax Increment District No. 3 include the following: The Housing Account is expanded from $5,000,000 to $10,425,000 to reflect 15% of the tax increment revenue projected to be received through the remaining years of the District (2021). A Pooling Account is established to enable the EDA's use of additional tax increment revenue generated through the remaining years of the District (2021) to fund a $4,200,000 bond issue to acquire two key parcels for future redevelopment and the potential of an additional $7,000,000 in future EDA approved projects and acquisitions. The budget modification includes a $6,075,000 line item for public improvements which would include such eligible projects as the Brooklyn Boulevard Improvements identified in the City's Capital Improvement Plan. The EDA's bonding authority is expanded from $29,000,000 to $45,000,000 Section III.M of the TIF Plan Amendment identifies the estimated impacts of the plan modifications on other taxing jurisdictions during the remaining term of the District. The exhibit on page seven identifies a hypothetical tax rate effect on the City of Brooklyn Center of +1.953% as a result of Tax Increment District 3. Strategic Priorities: • Focused Redevelopment Mission: Ensuring an attractive, clean, stye, inclusive community that enhances the quality of life for all people and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1 AND A MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 3, AND ADOPTING A MODIFIED TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the City Council (the "Council") of the City of Brooklyn Center, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Brooklyn Center Economic Development Authority (the "EDA") has heretofore established the Housing Development and Redevelopment Project No. 1 (the "Project Area") and has adopted a redevelopment plan therefor (the "Redevelopment Plan") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended, and established therein Tax Increment Financing District No. 3, created as a redevelopment tax increment financing district under Minnesota Statutes, Section 469.174, Subdivision 10 (the "TIF District"). 1.02. In connection with amending the budget for the TIF District and acquiring certain land for redevelopment, the EDA has asked the Council to approve the Modification to Redevelopment Plan Housing Development and Redevelopment Project No. 1 (the "Redevelopment Plan Modification") and the Modification No. 4 to Tax Increment Financing Plan (A Redevelopment District) (Earle Brown Farm Project), dated November 12, 2013, and presented for the Council's consideration (the "TIF Plan Modification") for the TIF District, all pursuant to and in accordance with Minnesota Statutes, Section 469.174 through 469.1794 (the "Tax Increment Act"). 1.03. The EDA and the City have performed all actions required by law to be performed prior to the Redevelopment Plan Modification and the adoption and approval of the TIF Plan Modification, including, but not limited to, notification of the Hennepin County Commissioner representing the area of the County in which the TIF District is located, and delivering a copy of the TIF Plan Modification to Hennepin County and Independent School District Districts Nos. 286 (Brooklyn Center), 281 (Robbinsdale), 011 (Anoka-Hennepin), 279 (Osseo), which have taxing jurisdiction over the properties included in the TIF District. The EDA has requested that the City approve the Redevelopment Plan Modification and the TIF Plan Modification following the holding of a public hearing upon published and mailed notice as required by law. 1.04. The Council has investigated the facts relating to the Redevelopment Plan Modification and the TIF Plan Modification. RESOLUTION NO. Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council finds that the boundaries of the Project Area are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the TIF Plan Modification and therefore the Council reaffirms the findings and determinations originally made in connection with the establishment of the Redevelopment Project area and the adoption of the Redevelopment Plan therefor. 2.02. The Council finds that the Redevelopment Plan Modification and the TIF Plan Modification are intended and, in the judgment of the Council, the effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for redevelopment and housing activities associated with better utilizing blighted and underutilized land, enhancing the tax base of the City and providing decent, safe and sanitary housing for residents of the City, in an effort to provide an ongoing benefit to residents in the City and to those who frequent the area in the City and to otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan, as modified, and in the TIF Plan, as modified. 2.03. The Council hereby ratifies and confirms the findings made in connection with the establishment of the TIF District. 2.04. The City Council hereby makes the following additional findings in connection with the TIF Plan Modification: (a)The City Council further finds that the development of the parcels to be acquired by the City, in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being: The property to be acquired would not be developed in the reasonably foreseeable future due to current economic conditions and extensive redevelopment costs including demolition and site remediation costs. And the City faces the need for housing for seniors and other persons and families of low and moderate income which is currently unmet by private development. The project creates a need and opportunity better utilize blighted and underutilized land, to provide decent, safe and sanitary housing for persons of low and moderate income, to enhance the tax base in the City, and to provide maximum opportunity for development of private enterprise consistent with the needs of the City, which are public redevelopment costs that would not be financed by the private sector, particularly due to extensive redevelopment costs including demolition, site remediation and inadequate infrastructure. (b)The Council further finds that the TIF Plan Modification conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: RESOLUTION NO. The TIF Plan Modification will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The public redevelopment contemplated by the TIF Plan Modification is in accordance with the City's comprehensive plan. (c) The Council further finds that the TIF Plan Modification will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the TIF District by private enterprise. The specific basis for such finding being: The development anticipated to occur within the TIF District and on the parcels to be acquired includes commercial development and housing for persons of low and moderate income consistent with other development in the area and in areas targeted for redevelopment and activities will include land acquisition and acquisition of any necessary right of way, transportation and land use studies, demolition and site preparation, and construction of public utilities and improvements necessary for private redevelopment which will reduce blight and increase the taxable market valuation of the City. 2.05. The provisions of this Section 2 are hereby incorporated by reference into and made a part of the Tax Increment Financing Plan. 2.06. The Council further finds that the TIF Plan Modification and the Redevelopment Plan Modification are intended and in the judgment of the Council their effect will be to promote the public purposes and accomplish the objectives specified in the TIF Plan and the Redevelopment Plan. Section 3. Approval of the TIF Plan Modification and Redevelopment Plan Modification; Interfund Loans. 3.01. The Redevelopment Plan Modification and the TIF Plan Modification are hereby approved. 3.02. The staff of the EDA and the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Redevelopment Plan Modification and the TIF Plan Modification. 3.03. The Council hereby approves a policy on interfiind loans or advances ("Loans") for the TIF District, as follows: (a) The authorized tax increment eligible costs (including without limitation out-of-pocket administrative expenses) payable from the TIF District, as its TIF Plan, as amended, may need to be financed on a short-term and/or long-term basis via one or more Loans, as may be determined by the City Finance Director or the Business and Community Development Director from time to time. RESOLUTION NO. (b)The Loans may be advanced if and as needed from available monies in the City's or the FDA's general fund or other City or EDA fund designated by the City Finance Director or the Business and Community Development Director. (c)Neither the maximum principal amount of any one Loan nor the aggregate principal amount of all Loans may exceed the adopted and, if applicable, amended TIF Plan budget for the TIF District. (d)The maximum term of any Loan shall not exceed the lesser of the statutory duration limit of the TIF District or such earlier date as the City Finance Director or the Business and Community Development Director may specify in writing. All Loans may be prepaid, in whole or in part, whether from tax increment revenue, TIF bond proceeds or other eligible sources. (e)The outstanding and unpaid principal amount of each Loan shall bear interest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178, Subdivision 7), which is the greater of the rates specified under Section 270.75 or 549.09 of the Statutes at the time a Loan, or any part of it, is first made, subject to the right of the City Finance Director or the Business and Community Development Director to specify a lower rate (but not less than the City's or the EDA's then-current average investment return for similar amount and term). November 12, 2013 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. RESOLUTION NO. CITY CLERK'S CERTIFICATE I, the undersigned, being the duly qualified and acting City Clerk of the City of Brooklyn Center, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes of a duly called and regularly held meeting of the City Council of said City held on November 12, 2013, with the original minutes thereof on file in my office and I further certify that the same is a full, true, and correct transcript thereof insofar as said minutes relate to the tax increment and related actions referenced therein with respect to the Economic Development Authority of the City of Brooklyn Center, Minnesota's Housing and Redevelopment Project No. 1 and Modification of Tax Increment Financing District No. 3 therein. WITNESS My hand this day of November, 2013. City Clerk Brooklyn Center, Minnesota Brooklyn Center Economic Development Authority, Minnesota Modification to Redevelopment Plan for Housing Development and Redevelopment Project No. 1 And Modification No. 4 to Tax Increment Financing Plan or Tax Increment Financing District No 3 (A Redevelopment District) Within HousingDevel iopment and Redeve1,9 ment Project No. 1 (Earle Brown Farm Project) Dated: October 10, 2013 (Draft), Modification Scheduled ,ApprOVal . November 12, 2013, , Original Plan .adopted December 19, 1994 Modification No 1 adopted April 28, 1997'1,1111 I tModification No. 2 aaopted April 28, 1997 Modification No. 3 adopted January 24, 2011 Administrative amendments were completed in 2004 and 2008 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000WWWSPRINGSTED.COM I . Introduction The purpose of this Modification No. 4 to the Tax Increment Financing Plan for Tax Increment Financing District No. 3 is to make adjustments to the Estimate of Costs and Sources of Revenue. This modification increases the overall spending of a "TIF only" budget (the original and previously modified budgets included non-TIF revenues and assumed spending). The sections specifically being modified are the Property to be Acquired, Estimate of Costs, Estimate of Loan/Bonded Indebtedness, Sources of Revenue, and Estimated Impact on Other Taxing Jurisdiction. This modification does not reflect all the legislative changes that have occurred since original adoption, and may not reflect fully the financial ramifications of all the TIF and property taksYstem changes. TABLE OF CONTENTS Section Paqe(s) Section I Definitions 1 Section 11 Modification to Redevelopment Plan for Redevelopment Project 2 Section ILA Statement and Finding of Public Purpose 2 Section II.B Statutory Authorization 2 Section II.0 Statement of Objectives 2 Section III Modification of TIF District No. 3 3 Section III.F Property to be Acquired 3 Section III.G Estimate of Costs 3 Section III.H Estimated Amount of Loan/Bonded Indebtedness 4 Section 111.1 Sources of Revenue 4 Section III.M Estimated Impact on Other Taxing Jurisdictions 4 Exhibit I: Map of Project Area and TIF District 6 Exhibit II: Estimated Impact on other Tax Jurisdictions Report 7 Brooklyn Center Economic Development Authority, Minnesota Section I Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority" means the Economic Development Authority in and for the City of Brooklyn Center. "City" means the City of Brooklyn Center, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the "Governing Body". "County" means Hennepin County, Minnesota. "EDA Act" means Minnesota Statutes, Section 469.090 to 469.108, inclusive, as amended. "HRA Act" means Minnesota Statutes, Section 469.001 to 469.047, inclusive, as amended. "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project. "Redevelopment Project" means Housing Development and Redevelopment Project No. 1 in the City, which is described in the corresponding Redevelopment Plan. "Project Area" means the geographic area of the Redevelopment Project. "School District /ISD No. 11" means the Anoka-Hennepin School District/ISD No. 11, Minnesota. "School District /ISD No. 279" means the Osseo School District/ISD No. 279, Minnesota. "School District /ISD No. 281" means the Robbinsdale School District/ISD No. 281, Minnesota. "School District /ISD No. 286" means Brooklyn Center School District/ISD No. 286, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive. "TIF District" means Tax Increment Financing District No. 3. "TIF Plan Modification" means Modification No. 4 to the tax increment financing plan for the TIF District (this document). Springsted Page 1 Brooklyn Center Economic Development Authority, Minnesota Section II Modification to Redevelopment Plan for Redevelopment Project The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1: This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Redevelopment Project No. 1. Generally, the substantive changes include the modification of the estimated public costs and estimated revenues sources for the TIF District. The Estimated Public Costs is modified to include those set forth in Section III.B of the TIF Plan Modification and the Estimated Revenue Sources is modified to include those set forth in Section III. C of the TIF Plan Modification. For further information, a review of the Redevelopment Plan for Redevelopment Project No. 1 is recommended and is available from the City of Brooklyn Center. Other relevant information is contained in the Tax Increment Financing Plan for Tax Increment Financing Districts No. 1, No. 2, No. 3, No. 4, and No. 5 located within Redevelopment Project No. 1. A map of Redevelopment Project No. 1 is shown in Exhibit I. Section ILA Statement and Finding of Public Purpose On April 25, 1994, the City Council and Authority expanded the geographic boundaries of the Earle Brown Farm Redevelopment Project to include Housing Development Project No. 1 and other properties and provided additional housing powers. The modified redevelopment project is renamed Housing Development and Redevelopment Project No. 1. The Authority intends to use the powers allowed under the EDA Act and HRA Act to promote development and redevelopment through the City and to pool resources in order to reduce financial barriers to providing decent housing and employment opportunities. Section II.B Statutory Authorization On August 24, 1987, the City Council authorized the establishment of the Brooklyn Center Economic Development Authority (Authority). Pursuant to City Council Resolution No. 87-170, the Authority has and may exercise all of the powers conferred by law upon a Housing and Redevelopment Authority. The Authority has been authorized by the City to carry out all powers of and administer all projects initiated by the Brooklyn Center HRA, The Authority established Housing Development and Redevelopment Project No. 1 pursuant to the EDA Act and the HRA Act. HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes, Sections 469.001 to 469.047, or other law. Within the City areas exist where public involvement is necessary to cause redevelopment to occur. The Authority has certain statutory powers pursuant to the TIF Act to assist in financing eligible activities related to these redevelopment needs. Section II.0 Statement of Objectives The sampling of the general goals and objectives of the Redevelopment Plan are listed below: •To provide decent, safe and sanitary housing for persons of low and moderate income. •To provide governmental assistance to eliminate slum and blight. o To provide an ongoing benefit to the residents of the City and those who may frequent the area. o To enhance the tax base of the City. Springsted Page 2 Brooklyn Center Economic Development Authority, Minnesota To provide maximum opportunity, consistent with the needs of the City, for development by private enterprise. To better utilize vacant or undeveloped land. This modification of the estimated public costs for TIF District No. 3 will ensure a continuation of the EDA's goals and objectives of the Project Area that result in increased opportunities for commercial development and will otherwise benefit the health, safety, morals and welfare of the residents of the City. Section III Modification of TIF District No. 3 Section III.F Property to be Acquired The City or Authority may acquire any parcels, including interior streets and railway right-of-ways, within the boundaries of Housing Development and Redevelopment Project No. 1; and may use tax increment deposited in the housing development account to acquire any parcel located anywhere city for eligible housing activities, as provided in the Special Act. Section III.G Estimate of Costs The estimate of public costs associated with District No. 3 is outlined in the following line item budget: Estimate of Public Costs March 24, 2008 Admin. Amendment Proposed Budget Modification Land Acquisition $13,000,000 $25,000,000 Public Improvements 8,000,000 4,500,000 Site Improvements 2,000,000 2,100,000 Administrative Expenses 2,900,000 4,400,000 Contingency 1,000,000 - Housing Development Account Land Acquisition -6,000,000 Affordable Housing Expenses -4,175,000 Interest Expense on Debt Issuance -250,000 Total Housing Development Account 5,000,000 10,425,000 Pooling Land Acquisition -6,775,000 Public Improvements -4,000,000 Interest Expense on Debt Issuance -1,050,000 Total Pooling 11,825,000 Interest Expense (Including Capitalized)-_11,250,000 Total $31,900,000 $69,500,000 Any funds to be expended for off-site improvements outside the boundaries of District No. 3, but within the boundaries of Housing Development and Redevelopment Project No. 1, would be no more than 25 percent of total tax increment generated by District No. 3, including administrative costs, provided that tax increment deposited in the housing development account may be spent on eligible housing activities located anywhere in the City, as provided in the Special Act. Springsted Page 3 Brooklyn Center Economic Development Authority, Minnesota The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public costs is not increased. Section 111.H Estimated Amount of Loan/Bonded Indebtedness It is anticipated that the City or Authority may issue a revenue bond, general obligation bond, or other type of obligation in one or more series to finance public costs. The original principal amount of all indebtedness is not expected to exceed $2970007000 $45,000,000 with additional increments to be paid to capitalized and other interest determined at the time of issuance. Section 111.1 Sources of Revenue The major source of revenue to be used to finance public costs associated with the public development projects in Housing Development and Redevelopment Project No. 1 is tax increment generated as a result of the taxation of the land and improvements in District. No. 03. Tax increment financing refers to a funding technique that utilizes increases in valuation and the property taxes attributable to new development to finance, or assist in the financing of public development costs. Additional sources of revenue may include but are not limited to investment income and land sales. This does not preclude the City, the Authority or the developer from using other funds, at its discretion, to pay such costs. Estimated Sources of Revenue November 8, 2004 Admin. Amendment Proposed Budget Modification Tax Increment revenue $48,069,393 $65,344,375 Interest on invested funds 1,500,607 4,111,758 Sales/Lease Proceeds 2,330,000 Market Value Homestead Credit -43,867 Transfers In :0 Total $51,900,000 $69,500,000 Tax increment revenue projections were based on historical revenue receipts, and future revenue projections based on an approximate growth in captured tax capacity of $486,170, and a 3% market value inflator applied to future captured tax capacities. Section 111.M Estimated Impact on Other Taxing Jurisdictions Exhibit II shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District, generated over the remaining term of the District, was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the modification of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed modification to the tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1.The total amount of tax increment that will be generated over the remaining life (Collections from taxes payable 2013 —2021) of the TIF District is estimated to be $34,470,103. 2.To the extent the modification of the TIF District generates any public cost impacts on City-provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the TIF District upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the TIF District. Springsted Page 4 Brooklyn Center Economic Development Authority, Minnesota 3.The amount of tax increment generated over the remaining term of the TIF District that would be attributable to School District #011 levies, assuming the School District's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $302,902. 4.The amount of tax increment generated over the remaining term of the TIF District that would be attributable to School District #279 levies, assuming the School District's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $1,993,309. 5.The amount of tax increment generated over the remaining term of the TIF District that would be attributable to School District #281 levies, assuming the School District's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $1,195,911. 6.The amount of tax increment generated over the remaining term of the TIF District that would be attributable to School District #286 levies, assuming the School District's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $4,540,511. 7.The amount of tax increment generated over the remaining term of the TIF District that would be attributable to County levies, assuming the County's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $9,920,659. 8.No additional information has been requested by the County or School Districts that would enable them to determine additional costs that will accrue to it due to the development proposed for the district. 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R c ...... ..,c) I— z a) -CD.a- <- N ca ..0 ..= CD 0 43 -... 0 Lu-c a) LE cu o cCa) MEMO : ANDUM - COUNCIL WO SESSION DATE: October 28, 2013 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Review of the Proposed Amendment to the Tax Increment District 3 Budget and Sales of a Tax Increment Bond Recommendation: Tom Denaway, Analyst within the Management Consulting Services of Springsted Incorporated, the City's Financial Consultant, will have a power point presentation on their analysis on the attached amendment to the Tax Increment District No. 3 Plan. David MacGillivray, Principal with Springsted Incorporated, will be present to review the proposed sales of Tax Increment Revenue Bonds to fund the EDA's acquisitions of properties within the Opportunity Site and Brooklyn Boulevard Corridor. The purpose of this work session item is to inform and prepare the City Council for the November 12 th public hearing on the amendment to TIF District No. 3 and the November 25 th TIF Bond Sales.. No foil ial action is required. Background: On December 19, 1994, the City Council adopted Resolution No. 94-273, which established Tax Increment District 3, a scattered site redevelopment district comprised of 242 parcels. On April 28, 1997, the City Council conducted a public hearing to consider two amendments to this Tax Increment District: Modification No. 1 removed the following 6 properties from the district ( Summerchase Apartments, Brookdale Parking lot, Kohl's, Brookdale Mall, Penny's Auto, and Sears, as a result involving a reduction of their property values by $20 M. The medication also included an administrative adjustment moving the $1M contingency line item to a $1M Administrative, Legal, Engineering and Consulting Fees. Modification No. 2 included the aforementioned 6 properties into the TIF 3 District with their adjusted valuations added to the Districts base valuation. The City Council adopted Resolution No. 1997-76 which approved both Modifications. On November 8, 2004, the EDA considered Modification No. 3, an administrative adjustment to the Budget including the following: - Line items relating to Bonding Authority provided in the TIF Plan were included in the budget: o :bond principal payments $29,000,000 Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the ptiblic trust MEMO ' £\NDUM - COUNCIL WO SESSION o Bond interest payments $20,000,000 Land Acquisitions were increased from $15 M to $19.2 M Public Works/Storm Sewer was reduced from $3.5 M to $3 M Site Improvements/Site Preparation was increased from $1M to $3.842572 M Public Parking was increased from 0 to $2M Loan Principal Payments was increased from 0 to $1M Loan Interest Payments was increased from 0 to $281,428 Admin„ Legal, Engineering, consulting fees were reduced from $2.9 M to $1.7 M Housing Development Account remained at $ 5M Contingency was increased from 0 to $1 M Other — Increment Refund was increased from 0 to $376,000 The overall adjustments to the line items were found to be consistent with the original budget of $31,900.000. The addition of the $49 M of bonding authority associated with these budget items increased the total estimated project costs to $80,900,000. This amendment also identified the Sources of Revenue as follows: Tax Increment Revenue $48,069,393 Interest on Investment Funds $ 1,500,607 Bond Proceeds $29,000,000 Sales & Lease Proceeds $ 2,300,000 Total $80,900,000 On March 24, 2008, the EDA considered Modification No. 4, an administrative adjustment to the $ 5 M Housing Account line item which added environmental remediation of single and multiple family housing properties as an eligible expenditure. Modification No. 4 was approved by EDA Resolution No. 2008-05. On August 26, 2013 the City Council's Work Session included a discussion on the opportunity to acquire 6121 Brooklyn Boulevard as part of the reimaging of the Brooklyn Boulevard Corridor. The Council discussed the following policy issues: Does the EDA feel that the acquisition of 6121 Brooklyn Boulevard meets the objectives of Tax Increment District 3? Does EDA support the issuance of a Tax Increment Housing Bond to acquire 6121 Brooklyn Boulevard? The majority consensus of the City Council/EDA was to authorize staff to meet with the property owners and negotiate a purchase agreement. Additionally, the EDA met in a closed session to discuss an opportunity to Acquire Lot 1, Block 1, Brookdale Square 2 nd Addition, a 23.2 acre commercial site to facilitate redevelopment with the southern portion of the Opportunity Site. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust MEMORANDUM - COUNCIL WO SESSION Tax Increment District No. 3 — Modification No. 5 TIF Modification No. 5 is being processed as a formal amendment to this Tax Increment Plan, which includes the following requirements: advanced notification to our County Commissioner, distribution of the proposed plan amendment to the County and School Districts, and the City Council holding a public hearing on the plan amendment. The purpose of the amendment is to accomplish the following: 1.A budget revision to reflect the Tax Increment Revenue Stream and Tax Increment Disbursements that have occurred during the first 15 years of the District. 2.Revisions to the Mod 3 projected revenue stream of $48,069,393 to $65,344,375 3.Adjusting the Housing Account from $5 M to $ 10.425 M to reflect 15% of the projected tax increment revenue. 4.Increasing the Bond Authority from $29 M to $55 M to facilitate the proposed sales of a 2013 TIF Bond to acquire Lot 1, Block 1 Brookdale Square 2 nd Addition (22.3 acres) and Lot 1, Block 1, Chrysler Motors 2 nd Addition (4.5 acres) and the potential of up to future EDA projects and/or acquisitions during the remaining life of the District. 5. Adding a line item for Pooled expenditures, as referenced in the original TIF Plan:, a.Any funds to be expended for off-site improvements outside the boundaries of District 3, but within the boundaries of Housing Development and Redevelopment Project No. 1, would be less than 25 percent of total tax increment generated by District No. 3, including administrative costs, provided that tax increment deposited in the housing development account may be spend on eligible housing activities located anywhere in the City, as provided in the Special Act. Note: any eligible expenditure that occurs after the 5 year rule time period or in this case the 13 year rule, as established through Special Legislation are considered as out-of-district/Pool Expenditures provided they are located within the City's Municipal Redevelopment District as illustrated in the attached Tax Increment District 3 Plan Amendment. b.The additional TIF revenue to fund this line item is being generated from the following projects/sources: the FBI site, the new Honda and Toyota sites, the future Volkswagen site, and adjustments to the tax status of the former Brookdale Ford and 57 th & Logan sites. c. The line item for Pooled Expenditures is identified in Springsted's analysis illustrates the potential of $7,329,523 available to fund EDA approved projects and acquisitions, such as the land purchases within the Opportunity Site and the Brooklyn Boulevard Corridor Improvements. Strategic Priorities: 0 Focused Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust COUNCIL ITEM MEMORANDUM DATE: September 23, 2013 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development - SUBJECT: Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Modification of Tax Increment Financing District No. 3, and the Adoption of a Modification to Tax Increment Financing Plan Recommendation: It is recommended that the City Council consider approval/adoption of the Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Modification of Tax Increment Financing District No. 3, and the Adoption of a Modification to Tax Increment Financing Plan. Background: On August 26, 2013, the City Council/EDA considered the opportunity to acquire land within the Brooklyn Boulevard Corridor and the Opportunity Site with funds from Tax Increment Financing District No 3. The direction of the City Council was to proceed with the negotiations to acquire both properties and the necessary amendment to the TIF 3 Finance Plan. This resolution begins the formal process of amending the Tax Increment Financing Plan for TIF District No. 3 by calling a public hearing for the November 12, 2013 City Council Meeting. Springsted Financial is in the process of preparing the budget amendment, the required advance notification to our County Commissioner, and the necessary financial data that will be included in the Plan amendment and forwarded to Hennepin County and the four School Districts 30 days prior to the public hearing. A work session item is planned for the October 14th City Council/EDA meeting to review the following components of this formal budget amendment: an updated projection of the TIF 3 revenue stream through 2021, increasing the Housing Account line item to reflect the 15% allocation of annual Tax Increment received, and maximizing the EDA's opportunity to use available funds for eligible land acquisitions and capital improvement projects. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life* for all people and preserves the public trust COUNCIL ITEM MEMORANDUM Tax Increment Finance District No. 3 Tax Increment District No. 3 was established in 1994 through special legislation which enabled the creation of this scattered site redevelopment district involving 221 parcels within the Brooklyn Boulevard/69th Ave. Area, the Brookdale Area, and the Willow Lane/Hwy 252 area for the following purposes: •To enhance the tax base of the City, •To provide maximum opportunity, consistent with the needs of the City for development by private enterprise, •To better utilize vacant or underdeveloped land, •To attract new businesses, o To acquire blighted or deteriorated residential property for rehabilitation or clearance and redevelopment, •To develop housing opportunities for market segments underserved by the City including housing for the disabled and elderly. A provision within the special state legislation required that 15% of the annual tax increment revenues be deposited into a housing development account established by the Authority and expended according to the tax increment financing plan. The District received its first increment in 1996 and is scheduled to close in 2021. Proposed Amendment to Tax Increment Finance District No. 3 The following private development activities and City Council actions are projected to increase the potential tax increment received by TIF District No. 3 to approximately $61 M: - the development of the FBI Regional Headquarters, - the removal of the Brookdale Mall properties from the District, - the new tax capacity captured by the Luther Honda and Toyota Dealership, - the additional tax capacity projected from the Volkswagen Dealership , and - the removal of the 57th & Logan Avenue site and the former Brookdale Ford sites. This amendment will update the tax increment projected to be received through 2021; increase the Housing Account to accurately reflect 15% of the projected increment; and to increase the budget's line items for land acquisition and public capital improvements. Budget Issues: The TIF Plan Amendment being prepared will identify the fiscal affects that the budget amendment will have on the City, School District, and County. Additionally, the amendment will enable the EDA to use eligible tax increment funds for public improvement projects; such as the Brooklyn Boulevard improvements identified in the City's Capital Improvement Plan. Strategic Priorities: 0 Focused Redevelopment Mission: Ensuring an attractive, clean, sq/c, inclusive community that enhances the quality of lift for ahipeople and preserves the public trust City of Brooklyn Center, Minnesota Modification of a Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District No 3 Proposed Schedule of Events Schedule of Events Date 0 Event Responsible Party September— October Drafting of TIF Plan Modification City, Kennedy & Graven, Springsted Modification of TIF Plan Monday September 23 2013, City Council adopts resolution calling for Public Hearing Springsted & Kennedy & Graven Friday September 27, 2013 County Commissioner receives notification letter Springsted(at least 30 days prior to publication of notice of public hearing) Prior to Thursday October 10, 2013 County and School District receive impact letters & draft TIF plan modification Springsted(at least 30 days prior to public hearing) Thursday October 31, 2013 Deadline: Oct. 24 Publication of notice of public hearing in Brooklyn Center Sun Post (10-30 days prior to public hearing) .City and Kennedy & Graven Thursday, October 31, 2013 Planning Commission reviews and adopts resolution City , Kennedy & Graven, Springsted Tuesday, November 12, 2013 City Council holds public hearing, and adopts resolution modifying TIF Plan and TIF District City, Kennedy & Graven, Springsted After November 12, 2013 State and County filing Springsted Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING ON A . MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT. AND REDEVELOPMENT PROJECT NO. 1, MODIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 3, AND THE ADOPTION OF A MODIFICATION TO TAX INCREMENT FINANCING PLAN BE IT RESOLVED by the City Council (the "Council")* of the City of Brooklyn Center, Minnesota (the "City"), as follows: Section 1. Public Hearing. This Council shall meet on November 12, 2013, at approximately 7:00 P.M., to hold a public hearing on a proposed modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 (the "Modification") and the proposed modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 3 (a Redevelopment District) (the "TIF District") (the "TIF Plan Amendment"), pursuant to Minnesota Statutes, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1794, as amended. Section 2. Notice of Public Hearing, Filing of Plans City staff and consultants are . directed and authorized to prepare the Modification and TIF Plan Amendment and to forward such documents to the appropriate taxing jurisdictions, including Hennepin County and Independent School District No. 286 (Brooklyn Center) and Independent School District No. 281 . (Robbinsdale). The City Clerk is authorized and directed to cause notice of the hearing in substantially the form attached as Exhibit A hereto, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not less than 10, nor more than 30, days prior to November 12, 2013, and to place a copy of the Modification and TIF Plan Amendment on file in the City Clerk's office at City Hall and to make such copy available for inspection by the public. September 23, 2013 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. RESOLUTION NO. EXHIBIT A NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Brooklyn Center, Hennepin County, State of Minnesota, will hold a public hearing on November 12, 2013, at approximately 7:00 P.M. at the City Hall, 6301 Single Creek Parkway, Brooklyn Center, Minnesota, relating to the proposed adoption of a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 (the "Redevelopment Plan Modification") and the proposed adoption of a Modification to Tax Increment Financing Plan (the "TIF Plan Amendment") for Tax Increment Financing-District No. 3 (a Redevelopment District) (the "TIF District"), pursuant to Minnesota Statutes, 469.090 to 469.1082 and Sections 469.174 to 469.1794, as amended. Copies of the Redevelopment Plan Modification and TIF Plan Amendment are on file and available for public inspection at the office of the Director of Business and Development at City Hall. The TIF District is located within Housing Development and Redevelopment Project No. 1 and the City of Brooklyn Center. A map of Housing Development and Redevelopment Project No. 1 and the TIF District is set forth below. Subject to certain limitations, tax increment from the TIF District may be spent on eligible uses within the boundaries of Housing Development and Redevelopment Project No. 1. [INSERT MAP of Housing Development and Redevelopment Project No. 1, and Tax Increment Financing District No. 3] All interested persons may appear at the hearing and present their views orally or prior to the meeting in writing. BY ORDER OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER, MINNESOTA . 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Created by, Brooklyn Center Business and Development Dept/GIS Document Path: LAUsers CornDev \TIFareas \TIF3Proposed.mxd 025 0.5 Miles ( HoLF-Arm Deve l opment and fledevelopmen'tic Proiect Mo. 01 Prok@ct Areas City Council Agenda Item No. 9a COUNCIL ITEM MEMORANDUM DATE: TO: FROM: THROUGH: SUBJECT: November 12, 2013 Curt Boganey, City Manager Tim Benetti, Planning and Zoning Specia1is6— Gary Eitel, Director of Business and Development Resolution RegardingRegarding the Disposition of Planning Commission Application No. 2013-022 Submitted By Avis Budget Group, Inc. for a Special Use Permit to Park and Lease Budget Rental Trucks at the Avis Rent-A Car/Sears Automotive Center, Located At 1299 Shingle Creek Crossing (Formerly 1299 Brookdale Center) Recommendation: It is recommended the City Council adopt the Resolution regarding the disposition of Planning Commission Application No. 2013-022 submitted by Avis Budget Group, Inc. for a Special Use Permit to park and lease Budget Rental Trucks at the Avis Rent-A Car/Sears Automotive Center, located At 1299 Shingle Creek Crossing (formerly 1299 Brookdale Center) Background: On October 17, 2013 the Planning Commission considered under a duly noticed public hearing Planning Application No. 2013-017, submitted by Avis Budget Group, Inc. for a Special Use Permit to park and lease Budget trucks at the Avis Rental/Sears Automotive facility. Upon consideration, the Planning Commission adopted PC Resolution No. 2013-22, which provided a favorable recommendation to approve the proposed special use permit. At the October 28, 2013 regular City Council meeting, the Council expressed some reservations of accepting this recommendation and approving the permit, based on the incompatibility this special use may bring to this area, especially the nearby Shingle Creek Crossing PUD and its plans to develop retail and restaurant uses. The matter was tabled and city staff was directed to prepare an alternate resolution. The attached resolution provides amended findings and considerations that essentially denies approval of Planning Commission Application No. 2013-022 and this special use permit request. The City Attorney has reviewed and assisted in the preparation of this amended resolution. Budget Issues: There are no budget issues to consider. Council Goals: Strategic Priorities: • Focused Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive conununiO that enhances the quality of life for people and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION REGARDING THE DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2013-022 SUBMITTED BY AVIS BUDGET GROUP, INC. FOR A SPECIAL USE PERMIT TO PARK AND LEASE BUDGET RENTAL TRUCKS AT THE AVIS RENT-A CAR/SEARS AUTOMOTIVE CENTER, LOCATED AT 1299 SHINGLE CREEK CROSSING (FORMERLY 1299 BROOKDALE CENTER) WHEREAS, Sears Holding Corporation is the owner of the Sears department store and Sears Automotive Center located at 1297 and 1299 Shingle Creek Crossing, respectively (the "Subject Property"), with the Subject Property legally described as Registered Land Survey No. 0936 of Hennepin County, MN; the Subject Property consists of 15.3 acres in total land area; the Subject Property is zoned PUD/C-2 (Planned Unit Development/Commerce); and the Subject Property is situated inside the Central Commerce Overlay District; and WHEREAS, on March 27, 1986, the City Council of the City of Brooklyn Center approved Planning Commission Application 86014, a special use permit to The Sears Center Companies and Budget Rent-a-Car of Minnesota to park and rent a certain number of passenger vehicles only from the Subject Property, located within the Sears Auto Center at 1299 Brookdale Center (now Shingle Creek Crossing), which is now operated and locally known as the Avis Rent-a-Car facility; and WHEREAS, pursuant to City Code Section 35-322 C2 (Commerce) District, Subd. 3.o, "Automobile and truck rental and leasing" is allowed by means of a special use permit; City Code Section 35-2240 Central Commerce Overlay District, Subd. 2.gg, provides for the following allowable uses: "Gasoline service stations, minor vehicle repairs and auto washes, trailer and truck rentals in conjunction with these uses, provided that there is adequate parking space available."; and WHEREAS, Planning Commission Application No. 2013-022 submitted by Avis Budget Group, Inc. requested a special use permit to allow the parking and leasing of Budget rental trucks as part of the existing Avis Budget Group's Avis/Budget rental business at the Subject Property; and WHEREAS, the Planning Commission held a duly noticed public hearing on October 17, 2013, at which a planning staff report and public testimony regarding the special use permit were received; the Planning Commission considered the special use permit request in light of all testimony received, the guidelines and standards for evaluating special use permits contained in Section 35-220 of the City's Zoning Ordinance, determined the request complies with the general goals and objectives of the City's 2030 Comprehensive Plan and recommended approval of the application with conditions; and WHEREAS, the Council has considered the application, staff report, hearing record and Planning Commission recommendation and has determined that the proposed use does not meet the requirements of City Code and should be denied for the reasons stated herein. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that Planning Application No. 2013-022, as submitted by Avis Budget Group, Inc. requesting a special use permit to park and lease rental trucks at the Subject Property, is hereby denied based on the following findings and considerations: 1.The Subject Property is part of the original Planned Unit Development ("PUD") for the Brookdale Shopping Center. Over time that center became obsolete and deteriorated, with high vacancy rates. As such, it was a detriment to the community and an impediment to development of the City and reinvestment in that commercial area of the City. The Brookdale PUD was amended to allow demolition of most of the structures in the shopping center and development of a major new retail area. With considerable public and private investment, the property adjacent to the Subject Property, which is part of the same overall PUD as amended, is being redeveloped as Shingle Creek Crossings, a new, modern, upscale commercial area designed to provide retail, recreational and entertainment uses. It is expected that the Shingle Creek Crossings Development will increase the tax base of the City, create jobs, encourage reinvestment in the City and enhance the quality of life. 2.The PUD amendment that allowed development of Shingle Creek Crossings did not amend the original PUD for Brookdale Shopping Center as it applied to the Subject Property. Nevertheless, the Subject Property is a part of the PUD, as amended, and shares parking and access and is part of the overall plan for development of the area. Accordingly, use and development of the Subject Property should take into consideration use and development of the adjacent Shingle Creek Crossings development just as use and development of that property should take into account the use and development of the Subject Property. 3. The outdoor storage of large rental trucks and car-dollies as inventory for the proposed business is not consistent with the overall image, intent and use of the redeveloping PUD. Truck leasing is not allowed in the adjacent, integrated Shingle Creek Crossings development, nor is outdoor storage of inventory, overnight parking of trucks, or even the unloading of trucks except at enclosed or screened bays. Rental trucks have large areas used for signage and advertising, and such advertising and signage is inconsistent with the strict regulation of signs in the overall PUD. Outdoor truck and trailer storage is visually unsightly and is more consistent with industrial uses. It is not consistent or harmonious with the current and proposed upscale retail and entertainment development of the area. The applicant's proposed uses would frustrate the intent and purpose of public and private investment in the area and would impede the continuing development of the adjacent Shingle Creek Crossings development and securing desirable tenants for that development. The Subject Property is visible from Highway 100 and the area proposed for parking the trucks and car-dollies is immediately visible upon entrance into the PUD from the south entrance at 55 th Avenue North and Xerxes. 4. Accordingly, the Council finds that the outdoor storage of truck and car-dollies as proposed does not meet the requirements for a special use peunit. Specifically: a)The establishment, maintenance and operation of the proposed use will not promote and enhance the general public welfare of this area, and will be detrimental to the public health, safety, morals or comfort of the commercial district's customers and Brooklyn Center citizenry; and b)The proposed special use will be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, and will substantially diminish and impair property values within the neighborhood; and c) The establishment of the special use will impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. 5. The rental of trailers and trucks can be authorized by special use permit in this district only if the use is "in conjunction with" a gasoline service station, minor vehicle repairs or auto washes. Although the Sears Automotive Center occupies the same building in this parcel, there has been no evidence produced to suggest that the Avis Budget Group rental is operated in conjunction with the Sears Automotive Center in any meaningful sense. As a tenant and a stand-alone business, it does not qualify for a special use permit. November 12, 2013 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. 10a COUNCIL ITEM MEMORANDUM DATE: November 4, 2013 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk 4(0,64. -41."&264- SUBJECT: Mayoral Appointment of Member to Serve on Park and Recreation Commission Recommendation: It is recommended that the City Council consider ratification of the Mayoral appointment of Travis Bonovsky, 5540 Emerson Avenue North, to the Park and Recreation Commission with term to expire December 31, 2016. Background: The Park and Recreation Commission is composed of a chairperson and six members. There is one vacancy on the commission. Notice of vacancy on the Commission was posted at City Hall and Community Center and on the City's website and aired on Cable Channel 16 beginning September 19, 2013. Announcement was made in the September 26, 2013, online edition of Brooklyn Center Sun-Post. A letter was sent to those persons who previously had submitted an application for appointment to a Brooklyn Center advisory commission informing them of the vacancy and requesting that they call the City Clerk if they are interested in applying for the Commission. They were given the choice of either submitting a new application or having their application previously submitted considered. Notices were also sent to current advisory commission members. Copies of the application received were forwarded to City Council Members in the November 1, 2013, update. Attached for City Council Members only is a copy of the application received: Travis Bonovsky 5540 Emerson Avenue North The applicant was notified that his application for appointment would be considered at the November 12, 2013, City Council meeting. Mayor Willson recommends appointment of Travis Bonovsky. As previously requested by the City Council, the City Advisory Commission Bylaws are not included in the materials but can be found on the City's website at www.cityofbrooklyncenter.org . The membership roster is also available at this site and in the City Council Reference Book. Budget Issues: There are no budget issues to consider. Mission: Lnsu,ing an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public City of Brooklyn Center Park and Recreation Commission Geographical Distribution by Park Service Area (P.S.A.) (Chairperson and Six Members) Current Members November 4, 2013 Park Service Area P.S.A. 1 P.S.A. 2 P.S.A. 3 Applicants Travis Bonovsky Current Members Jill Dalton Thomas Shinnick Gail Ebert Jerome Witalka Bud Sorenson P.S.A. 4 P.S.A. 5 John Russell City Council Agenda Item No. 10b COUNCIL ITV MEMORANDUM DATE: November 12, 2013 TO: Curt Boganey, City Manager FROM: Gregory ews Interim irector SUBJECT: 2013B General Obligation (G.0.) Improvement Bonds Recommendation: It is recommended that the City Council consider approval of the attached resolution providing for the competitive negotiated sale of $4,920,000 General Obligation Improvement Bonds, Series 2013B to finance the construction of various improvement projects in the City. Background: On February 14, 2011, the City Council approved resolutions ordering improvements and authorizing preparation of plans and specifications for the Palmer Lake East Neighborhood Street, Storm Drainage and Utility improvements and for Unity Avenue Street improvements. At that same meeting, the Council approved resolutions certifying special assessments for each of the projects. On February 13, 2012, the Council approved a resolution accepting work performed and authorized final payment for the Unity Avenue. The final project cost was $975,551.10 of which $204,814.26 had been assessed to benefited properties and $105,645.17 represented the City's share paid from the Street Reconstruction fund. On October 22, 2012, the Council approved a resolution accepting work performed and authorizing final payment for the Palmer Lake East Neighborhood Street and Utility improvements. The final project cost was $7,252,285.84 of which $1,374,606.41 and $423,050.87 were assessed for Street and Storm Drainage respectively and $1,655,707.48 represented the City's share paid from the Street Reconstruction fund. The final project to be financed by this bond sale is for the Kylawn Park Area Street, Storm Drainage and Utility improvements. On January 14, 2013, the Council approved a resolution ordering improvements and authorized plans and specifications for this project. At the same meeting, a resolution was approved certifying $1,086,651.29 for street improvements and $326,199.22 for storm drainage. The estimated Street Reconstruction fund share was $1,423,805.15. In each of the Council actions ordering the improvement projects, the resolutions included language indicating that "the City reasonably expects to reimburse itself for such expenditures from the proceeds of taxable or tax-exempt bonds, the debt service of which is expected to be paid from property taxes, special assessments or utility fees." Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality 011ie for ciii people and preserves the public trust COUNCIL ITEM MEMORANDUM Budget Issues: The Street Reconstruction fund which is the primary source of funding the City's share of street reconstruction improvements receives $660,000-$700,000 per year in franchise fees. Since franchise fees are not adequate to cover the City's share of street reconstruction expenditures which have been in excess of $1,000,000 per year and will continue for the next six to seven years as identified in the latest Capital Improvement Plan (CIP), it has been necessary to internally borrow in order to have adequate resources to complete the projects. During the review of the CIP, a cash flow analysis was reviewed which indicated that with a bond sale every other year beginning with this issue, the Street Reconstruction fund would have sufficient cash balances along with franchise fees to finance street improvements through 2019. Of the $4,920,000 of bonds to be sold, $3,185,158 represents the Street Reconstruction share of the three projects with a property tax levy as the debt service source for payment of principal and interest on the bonds. On September 13, 2013, the Council adopted a preliminary 2014 Public Improvement Bond levy of $687,000. Additionally, special assessments of $1,651,000 plus interest certified and uncollected as of December 31, 2013 for the three public improvement projects will provide the remainder of debt service during the life of the bonds. We have attached to this memorandum a recommendation for the structuring of this bond sale prepared by Springsted Incorporated. David Macgillivray and Brenda Krueger will be at the November 12, 2013 meeting to present their recommendations and answer any questions. Strategic Priorities: Financial Stability Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for people and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $4,920,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2013B BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1.Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Brooklyn Center (the "City"), should issue $4,920,000 General Obligation Improvement Bonds, Series 2013B, to finance various improvement projects in the City. 2.Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Bonds. 3.Competitive Negotiated Sale. The City has retained Springsted Incorporated as an independent financial advisor, and the City Council hereby determines to sell the Bonds by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Bonds which are not published in any newspaper or journal. 4.Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby made a part hereof. 5. Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Springsted Incorporated in the preparation of an official statement for the Bonds. November 12, 2013 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. RESOLUTION NO. EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $4,920,000 * CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2013B (BOOK ENTRY ONLY) Proposals for the Bonds and the Good Faith Deposit ("Deposit") will be received on Monday, November 25, 2013, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. (a)Sealed Biddinz Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted Proposal. OR (b)Electronic Biddinz. Notice is hereby given that electronic proposals will be received via PARITY®. For purposes of the electronic bidding process, the time as maintained by PARITY ® shall constitute the official time with respect to all Bids submitted to PARITY ®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY® for purposes of submitting its electronic Bid in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents nor PARITY ® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the Preliminary; subject to change. RESOLUTION NO. proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY ®. The City is using the services of PARITY ® solely as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY® is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY ®, this Terms of Proposal shall control. Further information about PARITY ®, including any fee charged, may be obtained from: PARITY®, 1359 Broadway, 2'd Floor, New York, New York 10018 Customer Support: (212) 849-5000 DETAILS OF THE BONDS The Bonds will be dated as of the date of delivery, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2014. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts* as follows: 2015 $885,000 2017 $525,000 2019 $515,000 2021 $515,000 2023 $205,000 2016 $530,000 2018$520,000 2020 $510,000 2022 $510,000 2024 $205,000 The Cit), reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the Proposal form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of RESOLUTION NO. beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2022, and on any day thereafter, to prepay Bonds due on or after February 1, 2023. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge special assessments against benefited properties. The proceeds will be used to inance various street reconstruction projects in the City. BIDDING PARAMETERS Proposals shall be for not less than $4,875,720 plus accrued interest, if any, on the total principal amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity must be 98.0% or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. GOOD FAITH DEPOSIT Proposals, regardless of method of submission, shall be accompanied by a Deposit in the amount of $49,200, in the form of a certified or cashier's check, a wire transfer, or Financial Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated have any liability for delays in the transmission of the Deposit. Any Deposit made by certified or cashier's check should be made payable to the City and delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101. RESOLUTION NO. Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's agent according to the following instructions: Wells Fargo Bank, N.A., San Francisco, CA 94104 ABA #121000248 for credit to Springsted Incorporated, Account #635-5007954 Ref: Brooklyn Center, MN Series 2013B Good Faith Deposit Contemporaneously with such wire transfer, the bidder shall send an e-mail to bond services@springsted.com , including the following information; (i) indication that a wire transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies, and (iv) the return wire instructions if such bidder is not awarded the Bonds. Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City following the award of the Bonds. Any Deposit made by check or wire transfer by an unsuccessful bidder will be returned to such bidder following City action relative to an award of the Bonds. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota and pre-approved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that underwriter is required to submit its Deposit to the City in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The Deposit received from the purchaser, the amount of which will be deducted at settlement, will be deposited by the City and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD he Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a RESOLUTION NO. bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder's Proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT On or about December 19, 2013, the Bonds will be delivered without cost to the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000. RESOLUTION NO. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded up to 25 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated November 12, 2013 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson City Clerk 5.00'11 4.00% 3.00% 2.00% 1.00% 0.00'% cp 0 0 0 0 4' NN 0, 0, 0 0 0 0 0' NO' e e e e o9 (19 c19 c15' 1/46.' 0 0 4"' NQP ,QPN 0 0° 0N \o'b's ,sorb\ !PC) ,CP's —30-Year —10-Year 1051/2013 30-yr: 163%10-yr. 2.57% 7 00% 6.00% City of Brooklyn Center, Minnesota Recommendations for Issuance of Bonds $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013A $4,920,000 General Obligation Improvement Bonds, Series 2013B The Council has under consideration the issuance of bonds to finance (i) the acquisition of approximately 28.7 acres of land located within the City, and certain demolition activities thereon, for the purpose of facilitating redevelopment activities and transportation improvements; and (ii) various street reconstruction projects within the City. This document provides information relative to the proposed issuance. KEY EVENTS: The following summary schedule includes the timing of some of the key events that will occur relative to the bond issuance. November 12, 2013 Week of November 11, 2013 November 25, 2013, 10:00 a.m. November 25, 2013, 6:00 p.m. December 19, 2013 Council sets sale date and terms Rating conference is conducted Competitive proposals are received Council considers award of bonds Proceeds are received RATING: An application will be made to Standard & Poor's Ratings Services for ratings on the bonds. The City's general obligation debt is currently rated "AA" by S&P. THE MARKET: Interest rates for the taxable municipal market are quoted as a spread to U.S. Treasury Securities. To give you an indication of the relative position of that market, the chart below tracks the yield of the 10-year and 30-year U.S. Treasury over the last five years. 10-year and 30-year Treasury Rates for Five Years Ending October 31, 2013 Dates Prepared by Springsted Incorporated Springsted 101112513 25 bond 514% 2050,4 44S% 'ett 4.8 5.0% 4.0% 3 5% 30% •Sr cP-Cisp\. 41,`65' ..15<6.\ „4,-s'A,(ONs's <f1,4s ":1" C' ,Si<V9,s1415'45,0,,,,Cf":415,<' 00°\\159'b (ho 6.5% 60% 5.5% 4 5% Performance of the tax-exempt market is often measured by the Bond Buyer's Index ("BBI") which measures the yield of high grade municipal bonds in the 20th year for general obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25 Bond Index). The following chart illustrates these two indices over the past five years. BBI 25-bond (Revenue) and 20-bond (GO.) Rates for 5 Years Ending 10/31/2013 ---•1361 25 Bond 80120 Bona Dates Prepared by Springsted incorporated POST ISSUANCE The issuance of these bonds will result in post-issuance compliance responsibilities. The COMPLIANCE: responsibilities lie in two primary areas: i) compliance with federal arbitrage requirements and ii) compliance with secondary disclosure requirements. Note: the federal arbitrage requirements do not apply to taxable obligations such as the Series 2013A Bonds. Federal arbitrage requirements include a wide range of implications that have been taken into account as your issue has been structured. Post-issuance compliance responsibilities for your tax-exempt issue include both rebate and yield restriction provisions of the IRS Code. In very general terms the arbitrage requirements control the earnings on unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. The arbitrage rules provide an exception from rebate provisions for gross proceeds that are spent within a 6-month period. The City expects to meet the 6-month spending exception in regards to the Series 2013B Bonds and gross proceeds that meet the test will qualify for an exception to rebate. Certain proceeds may remain subject to rebate and yield restriction provisions will still apply to the debt service fund and any proceeds that remain unspent after three years. Secondary disclosure requirements result from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospective underwriter will require the City to commit to providing the information needed to comply under a continuing disclosure agreement. Springs ted Page 2 SUPPLEMENTAL INFORMATION AND BOND RECORD: Springsted currently provides arbitrage and continuing disclosure compliance services to the City under separate contracts. Contract amendments adding these issues will be provided to City staff. Supplementary information will be available to staff including detailed terms and conditions of sale, comprehensive structuring schedules and information to assist in meeting post- issuance compliance responsibilities. Upon completion of the financing, bond records will be provided that contain pertinent documents and final debt service calculations for the transactions. $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2073A Description of Issue PURPOSE: AUTHORITY: The City's Economic Development Authority (EDA) has been pursuing opportunities to purchase land from willing sellers in order to facilitate the City's redevelopment and transportation improvement goals, in conformance with the City's Comprehensive Plan. TIF No. 3 housing set-aside revenue collections will be used to purchase at least two properties totaling approximately 5 acres located in the Brooklyn Boulevard Corridor, and pay for demolition activities and other eligible costs. The total acquisition and demolition costs are estimated at $1,800,000. The larger of the two parcels is commercially zoned property that was previously occupied by a car dealership. The City's 2012 Brooklyn Boulevard Corridor Study identified these parcels as possible sites for future housing development. In particular, the site of the prior car dealership property and an adjacent parcel previously acquired by the EDA, has been identified as a possible location for a senior assisted care living facility. TIF No. 3 excess pooled revenue collections will be used to purchase approximately 23.2 acres located in the City's Opportunity Site identified in the City's Comprehensive Plan as a potential mixed use redevelopment area, purchase another half-acre parcel located in the Brooklyn Boulevard Corridor, and pay for other eligible costs. The total cost of land acquisition is estimated at $4,200,000. The 23.3 acre parcel is currently occupied by the Brookdale Square retail strip center and three commercial free standing buildings. As of the date of these recommendations the City is finalizing the land purchase contracts for the land acquisitions. If for some reason one or more of the purchase contracts are not concluded prior to the final stages of this bond sale process, the City could decide not borrow for all the land acquisitions at this time, thus reducing the principal amount of the Series 2013A Bonds. It has been determined that the Series 2013A Bonds will be taxable as the proceeds of the Series 2013A Bonds are being used for a private purpose and the land is expected to be sold to a private party. Statutory Authority: The Series 2013A Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. Springsted Page 3 Statutory Requirements: Coincidental with the issuance of the Series 2013A Bonds, the City is taking the required actions to modify its Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 3 (the "District") to include the acquisition of additional property and the issuance of the Series 2013A Bonds. The modifications to the TIF Plan do not include extending the term of the District. SECURITY AND The Series 2013A Bonds are general obligations of the City secured by its full faith and SOURCE OF credit and taxing power. The Series 2013A Bonds are expected to be repaid with tax PAYMENT: increment revenues derived from the District, which are already being collected from new development within the District. In association with City Staff, Springsted prepared an update of the tax increment cash flow projections for the District and determined that the District will be able to support the additional expenses of the land acquisition being financed by the Series 2013A Bonds. The updated tax increment cash flow projections are considered to be conservative based on certain assumptions regarding delinquencies and incremental market value growth. First-half collection of tax increment revenues will pay the interest due on the Series 2013A Bonds on August 1 of the year of collection; second-half collections plus surplus first-half collections will pay the principal and interest due February 1 of the following year. STRUCTURING At the direction of the City, Springsted prepared a cash flow for TIF No. 3 that (i) identified SUMMARY: the 15% Housing Fund transfer to be used to fund certain parcels expected to be redeveloped into housing and (ii) the remaining excess pooled TIF No. 3 tax increment revenues designated to pay for parcels to be redeveloped with activities other than housing. The estimated purchase price for each parcel and their corresponding tax increment revenue collections have been used to structure the Series 2013A Bonds with two distinct purposes. The total tax increment revenue collections are projected to be in excess of the total debt service requirements on the Series 2013A Bonds; approximately 2.0 times coverage ($2.00 of annual revenues per $1.00 of debt service) in the first six years and approximately 1.2 times coverage in the last two years. SCHEDULES ATTACHED: Attachments include: O Sources and uses of funds O Net debt service schedules for the Series 2013A Bonds as a whole and by purpose •Tax Increment Financing District No. 3 Updated Cash Flow Projections RISKS/SPECIAL The outcome of this financing will rely on the market conditions at the time of the sale. Any CONSIDERATIONS: projections included herein are estimates based on current market conditions. As noted below, the Series 2013A Bonds will not be callable prior to maturity. The City will not have an opportunity to restructure the Series 2013A Bonds in the event tax increment revenue collections vary significantly from projections. Furthermore, the City cannot extend the final term of the Series 2013A Bonds because the final year of tax increment collection is in 2021 (collections in 2021 will make the August 1, 2021 interest payment and February 1, 2022 principal and interest payment on the Series 2013A Bonds). SALE TERMS AND Variability of Issue Size: A specific provision in the sale terms permits modifications to the MARKETING: issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Springsted Page 4 Prepayment Provisions: Based on the short duration of the Series 2013A Bonds, and to avoid possible negative pricing impacts, the Series 2013A Bonds will not be subject to redemption prior to their stated maturities. Bank Qualification: Bank qualification limits do not apply to taxable issues such as the Series 2013A Bonds. $4,920,000 General Obligation Improvement Bonds, Series 2013B Description of Issue _ PURPOSE: Proceeds of the Series 2013B Bonds will be used to reimburse the City for a portion of the cost of various street reconstruction projects, including Palmer Lake East and Unity Avenue/Shingle Creek Parkway street improvements both completed in 2012, and Kylawn Park Area street improvements, which will be substantially completed by year end 2013. The City has initially financed these projects from its Street Reconstruction Fund with the intent to reimburse the Street Reconstruction Fund from bond proceeds. AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Statutory Requirements: Minnesota Statutes, Chapter 429 states that at least 20% of the project costs being financed under the statute are required to be specially assessed against benefitted properties. SECURITY AND The Series 2013B Bonds are general obligations of the City secured by its full faith and SOURCE OF credit and taxing power. In addition the City will pledge special assessments against PAYMENT: benefitted properties. The City will be required to levy taxes to pay a portion of the debt service. The City will make their first levy for the Series 2013B Bonds in 2013 for collection in 2014. Each year's collection of taxes and assessments will be used to make the August 1 interest payment due in the collection year and the February 1 principal and interest payment due in the following year. STRUCTURING The Series 2013B Bonds have been structured around projected future special SUMMARY: assessment collections to result in relatively even annual levy requirements. However, principal due in the first levy cycle (February 1, 2015) was structured to achieve a net levy of approximately $687,000, which is the City's 2014 budgeted debt service levy for the Series 2013B Bonds. The first year levy was allocated between the three projects based on a percentage of each project's budgeted Street Reconstruction Fund contribution. Assessments have been filed and certified for all three projects, and substantial prepayments of assessments have been received. Special assessment collections through 2013 have or will be deposited into the construction fund, thus reducing the amount the City needs to borrow for the street reconstruction projects. City staff provided an estimate of the anticipated remaining unpaid principal on the assessments, after second-half 2013 assessment collections, which have been used to size the principal amount of the Series 2013B Bonds. All assessments were spread over a term of 10 years, and are paid with equal principal payments. Interest on the unpaid principal balance was Springsted Page 5 charged at a rate of 6.0%. Further details of special assessments by project are detailed in the following table: SCHEDULES ATTACHED: Date Assessments Certified Remaining Principal Balance of Unpaid Special Assessments Final Year of Assessment Collections Allocation of First Year Levy of $687,000 Palmer Lake East 2-14-2011 $750,000 2021 52% Unity Avenue 2-14-2011 $85,000 2021 3% Kylawn Park 1-14-2013 $816,000 2023 45% Attachments include: O Sources and uses of funds O Net debt service schedules for the Series 2013B Bonds as a whole and by purpose O Projected future special assessment collections by project The outcome of this financing will rely on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions. Variability of Issue Size: A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Prepayment Provisions: Based on the short duration of the Series 2013B Bonds, and to avoid possible negative pricing impacts, the Series 2013B Bonds will not be subject to redemption prior to their stated maturities. Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt obligations that count against its $10 million limit for this calendar year; therefore, the Series 2013B Bonds will be designated as bank qualified. RISKS/SPECIAL CONSIDERATIONS: SALE TERMS AND MARKETING: Springs ted Page 6 $6,090,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Land Purchases Total Issue Sources And Uses Dated 12119/2013 I Delivered 12/19/2013 Parcels Paid Parcels Paid from Excess from Housing Pooled Issue Set-As ide Collections Summary Sources Of Funds Par Arrount of Bonds $1,825,000.00 $4,265,000.00 $6,090,000.00 Total Sources $1,825,000.00 $4,265,000.00 $6,090,000.00 Uses Of Funds Land Purchase 1 1,665,000.00 3,900,000.00 5,565,000.00 Land Purchase 2 135,000.00 300,000.00 435,000.00 Total Underwriter's Discount (0.800%) 14,600.00 34,120.00 48,720.00 Costs of Issuance 12,016.83 28,083.17 40,100.00 Rounding Amount (1,616.83)2,796.83 1,180.00 Total Uses $1,825,000.00 $4,265,000.00 $6,090,000.00 2 013 Taxable T11, 2013 -1. 1ssue Snoninart 11' 6/2 013 4:17 0711 Springsted Page 7 $6,090,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Land Purchases NET DEBT SERVICE vs. REVENUE Date Principal Coupon Interest Total P+I 105% Overlevy Revenue Surplus TIF Collections 02/01/2014 02/01/2015 260,000.00 0.900%197,471.33 457,471.33 480,344.90 973,809.68 493,464.78 02/01/2016 265,000.00 1.250%174,500.00 439,500.00 461,475.00 975,297.18 513,822.18 02/01/2017 270,000.00 1.700%171,187.50 441,187.50 463,246.88 960,797.18 497,550.31 02/01/2018 275,000.00 2.150%166,597.50 441,597.50 463,677.38 974,422.18 510,744.81 02/01/2019 330,000.00 2.500%160,685.00 490,685.00 515,219.251,076,547.18 561,327.93 02/01/2020 335,000.00 2.900%152,435.00 487,435.00 511,806.751,084,697.18 572,890.43 02/01/2021 2,140,000.00 3.150%142,720.00 2,282,720.00 2,396,856.00 2,976,947.18 580,091.18 02/01/2022 2,215,000.00 3.400%75,310.00 2,290,310.00 2,404,825.50 2,976,947.18 572,121.68 Total $6,090,000.00 - $1,240,906.33$7,330,906.33 $7,697,451.65 $11,999,464.94 $4,302,013.29 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $39,770.50 Average Life 6.530 Years Average Coupon 3.1201678% Net Interest Cost (NIC) 3.2426706% True Interest Cost (TIC) 3.2478293% Bond Yield for Arbitrage Purposes 3.1100573% All Inclusive Cost (AIC) 3.3761693% 2013 Tavabk 1112013- L Issue Sioninaly 11/ 6/2013 8.47 Alt Springsted Page 8 $1,825,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Parcels Paid from Housing Set-Aside NET DEBT SERVICE vs. REVENUE Date Principal Coupon Interest Total P+I 105% Overlevy Revenue Surplus TIF Collections 02/01/2014 02/01/2015 210,000.00 0.900%46,654.33 256,654.33 269,487.05 446,542.08 177,055.03 02/01/2016 215,000.001.250%39,890.00 254,890.00 267,634.50 446,542.08 178,907.58 02/01/2017 220,000.00 1.700%37,202.50 257,202.50 270,062.63 446,542.08 176,479.46 02/01/2018225,000.00 2.150%33,462.50 258,462.50 271,385.63 446,542.08 175,156.46 02/01/2019230,000.00 2.500%28,625.00 258,625.00 271,556.25 446,542.08 174,985.83 02/01/2020 235,000.002.900%22,875.00 257,875.00 270,768.75 446,542.08 175,773.33 02/01/2021 240,000.00 3.150%16,060.00 256,060.00 268,863.00 446,542.08 177,679.08 02/01/2022 250,000.003.400%8,500.00 258,500.00 271,425.00 446,542.08 175,117.08 Total $1,825,000.00 - $233,269.33$2,058,269.33 $2,161,182.80 $3,572,336.64 $1,411,153.84 2013 Tavab le 11E2013 -L Paid from 711 3 H 6/2013 8..47 Alif Springsted Page 9 $4,265,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Parcels Paid from Excess Pooled Collections NET DEBT SERVICE vs. REVENUE Date Principal Coupon Interest Total P+I 105% Overlevy Revenue Surplus TIF Collections 02/01/2014 02/01/201550,000.00 0.900%150,817.00 200,817.00 210,857.85 527,267.60 316,409.75 02/01/201650,000.00 1.250%134,610.00 184,610.00 193,840.50 528,755.10 334,914.60 02/01/201750,000.00 1.700%133,985.00 183,985.00 193,184.25 514,255.10 321,070.85 02/01/201850,000.00 2.150%133,135.00 183,135.00 192,291.75 527,880.10 335,588.35 02/01/2019100,000.00 2.500%132,060.00 232,060.00 243,663.00 630,005.10 386,342.10 02/01/2020100,000.00 2.900%129,560.00 229,560.00 241,038.00 638,155.10 397,117.10 02/01/2021 1,900,000.00 3.150%126,660.00 2,026,660.00 2,127,993.00 2,530,405.10 402,412.10 02/01/20221,965,000.00 3.400%66,810.00 2,031,810.00 2,133,400.50 2,530,405.10 397,004.60 Total $4,265,000.00 - $1,007,637.00 $5,272,637.00 $5,536,268.85 $8,427,128.30 $2,890,859.45 2013 Tax-ableTIF 2013 .L Parcels Paid from /11317 11' 6/2013 8:47311 Springs ted Page 10 t< 8- g El 2 2 2 ?-9 2 2 2 n:'4gagggggg55t..1.1.`st rq-n nnnnn n F„' c7„1 8„! gn: T! 03. g g RI V61 r.; L 'O9A5 v214 8888885 -5 LE8' `,;.;82,22,22 :aN'6LiFCCS .'4Lr 8 8 8 86 6 6 d g22T. g:988. g5r4:55 2 9 9 g 2 21.(1 ui tri k 5 5 5 5 5 5 5(-4 ni• r, g 9. 8 8 2. 2. 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E .54ro <-0 4-si g B N ?f,R-DCOc°00To • "6 _4■E'l .46 E u - o 0 E -0 10 Eu_ 4- < .5 2 .to 0'1 ONto -c■ D.- rO3= Ott > CC C")= 0 - c 5("' 2 c C o_<<u.J U 0- < U Z to -CS o - c 0 O N M 0 to up N. to N Us s ; v 5 5EE co Cs0_ 0.101' 01-I-1 4-10 0 r-I N.00Crts Spr ingsted Page 11 $4,920,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Issue Summary Total Issue Sources And Uses Dated 12/19/2013 I Delivered 12/19/2013 Sources Of Funds Palmer Lake East Unity Avenue Kylawn Park Issue Summary Par Amount of Bonds $2,450,000.00 $190,000.00 $2,280,000.00 $4,920,000.00 Total Sources $2,450,000.00 $190,000.00 $2,280,000.00 $4,920,000.00 Uses Of Funds Street Reconstruction Fund 1,655,707.48 105,645.17 1,423,805.15 3,185,157.80 Remaining Assessment Portion 750,000.00 85,000.00 816,000.00 1,651,000.00 Total Underwriter's Discount (0.900%) 22,050.00 1,710.00 20,520.00 44,280.00 Costs of Issuance 17,877.02 1,386.39 16,636.59 35,900.00 Rounding Amount 4,365.50 (3,741.56)3,038.26 3,662.20 Total Uses $2,450,000.00 $190,000.00 $2,280,000.00 $4,920,000.00 201311 GO Imp BOIldS Issue Smunmy I 10/29/2013 I 105 Springsted Page 12 $4,920,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Issue Summary NET DEBT SERVICE SCHEDULE Date PrincipalCoupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015 885,000.00 0.600%82,488.17967,488.17 1,015,862.58 332,227.00 683,635.58 02/01/2016 530,000.00 0.750%68,560.00 598,560.00628,488.00 273,876.50 354,611.50 02/01/2017 525,000.00 1.000%64,585.00 589,585.00619,064.25 262,718.00 356,346.25 02/01/2018 520,000.00 1.350%59,335.00 579,335.00 608,301.75 251,559.50 356,742.25 02/01/2019 515,000.00 1.650%52,315.00 567,315.00 595,680.75 240,401.00 355,279.75 02/01/2020 510,000.00 1.950%43,817.50 553,817.50581,508.38 229,242.50 352,265.88 02/01/2021 515,000.00 2.200%33,872.50 548,872.50 576,316.13 218,084.00 358,232.13 02/01/2022 510,000.00 2.350%22,542.50 532,542.50559,169.63 206,925.50 352,244.13 02/01/2023 205,000.00 2.500%10,557.50 215,557.50226,335.38 91,392.00 134,943.38 02/01/2024 205,000.00 2.650%5,432.50 210,432.50 220,954.13 86,496.00 134,458.13 Total $4,920,000.00 - $443,505.67 $5,363,505.67 $5,631,680.95 $2,192,922.00 $3,438,758.95 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $23,389.00 Average Life 4.754 Years Average Coupon 1.8962148% Net Interest Cost (NIC) 2.0855345% True Interest Cost (TIC) 2.0842911% Bond Yield for Arbitrage Rirposes 1.8827575% All Inclusive Cost (AIC) 2.2496606% IRS Form 8038 Net Interest Cost 1.8962148% Weighted Average Maturity 4.754 Years 2013B GO hip Bonds !Issue Sunman! 10/29/2013 ! 105 Page 13Springsted $2,450,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Palmer Lake East NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015430,000.00 0.600%39,021.92 469,021.92 492,473.02 138,750.00 353,723.02 02/01/2016 295,000.00 0.750%32,365.00 327,365.00343,733.25 133,125.00 210,608.25 02/01/2017290,000.00 1.000%30,152.50 320,152.50 336,160.13 127,500.00 208,660.13 02/01/2018 290,000.00 1.350%27,252.50 317,252.50 333,115.13 121,875.00 211,240.13 02/01/2019 285,000.00 1.650%23,337.50 308,337.50 323,754.38 116,250.00 207,504.38 02/01/2020 285,000.00 1.950%18,635.00 303,635.00 318,816.75 110,625.00 208,191.75 02/01/2021 290,000.00 2.200%13,077.50 303,077.50 318,231.38 105,000.00 213,231.38 02/01/2022 285,000.00 2.350%6,697.50 291,697.50 306,282.38 99,375.00 206,907.38 Total $2,450,000.00 - $190,539.42 $2,640,539.42 $2,772,566.39 $952,500.00 $1,820,066.39 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $10,780.83 Average Life 4.400 Years Average Coupon 1.7673905% Net Interest Cost (NIC) 1.9719201% True Interest Cost (TIC) 1.9733156% Bond Yield for Arbitrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.1504499% IRS Form 8038 Net Interest Cost 1.7673905% Weighted Average Maturity 4.400 Years 2013B GO Imp Bonds Palmer In(v East F 10/29/2013 11351311 Spring sted Page 14 $190,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Unity Avenue NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015 30,000.00 0.600%2,978.7132,978.71 34,627.65 15,725.00 18,902.65 02/01/2016 25,000.00 0.750%2,487.5027,487.5028,861.88 15,087.50 13,774.38 02/01/2017 25,000.00 1.000%2,300.00 27,300.00 28,665.00 14,450.00 14,215.00 02/01/2018 25,000.00 1.350%2,050.00 27,050.0028,402.50 13,812.50 14,590.00 02/01/2019 25,000.00 1.650%1,712.50 26,712.5028,048.13 13,175.00 14,873.13 02/01/2020 20,000.00 1.950%1,300.00 21,300.0022,365.00 12,537.50 9,827.50 02/01/2021 20,000.00 2.200%910.0020,910.00 21,955.50 11,900.00 10,055.50 02/01/2022 20,000.00 2.350%470.00 20,470.00 21,493.50 11,262.50 10,231.00 Total $190,000.00 - $14,208.71 $204,208.71 $214,419.15 $107,950.00 $106,469.15 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars.. $822.17 Average Life 4.327 Years Average Coupon 1.7282031% Net Interest Cost (NIC) 1.9361901% True Interest Cost (TIC) 1.9375525% Bond Yield for Arbitrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.1172425% IRS Form 8038 Net Interest Cost 1.7282031% Weighted Average Maturity 4.327 Years 2013B GO hnp Bo,d I tinily Avenue I 10/29/2013 I 1115 Spring sted Page 15 $2,280,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Kylawn Park NET DEBT SERVICE SCHEDULE Date PrincipalCoupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015425,000.00 0.600%40,487.54 465,487.54 488,761.92 177,752.00 311,009.92 02/01/2016210,000.00 0.750%33,707.50 243,707.50 255,892.88 125,664.00 130,228.88 02/01/2017 210,000.00 1.000%32,132.50 242,132.50 254,239.13120,768.00 133,471.13 02/01/2018205,000.00 1.350%30,032.50 235,032.50 246,784.13115,872.00 130,912.13 02/01/2019205,000.00 1.650%27,265.00 232,265.00 243,878.25110,976.00 132,902.25 02/01/2020 205,000.00 1.950%23,882.50 228,882.50 240,326.63 106,080.00 134,246.63 02/01/2021 205,000.00 2.200%19,885.00 224,885.00 236,129.25 101,184.00 134,945.25 02/01/2022 205,000.00 2.350%15,375.00 220,375.00 231,393.75 96,288.00 135,105.75 02/01/2023 205,000.00 2.500%10,557.50 215,557.50 226,335.3891,392.00 134,943.38 02/01/2024 205,000.00 2.650%5,432.50 210,432.50 220,954.13 86,496.00 134,458.13 Total $2,280,000.00 - $238,757.54 $2,518,757.54 $2,644,695.42 $1,132,472.00 $1,512,223.42 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $11,786.00 Average Life 5.169 Years Average Coupon 2.0257724% Net Interest Cost (NIC) 2.1998773% True Interest Cost (T1C) 2.1972831% Bond Yield for Arbitrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.3508787% IRS Form 8038 Net Interest Cost 2.0257724% Weighted Average Maturity 5.169 Years 201311GO klp Bonds I Kylawn Park 10/29/2013 LOS /Of Springsted Page 16 $1,651,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Projected Aggregate Assessment Collections DATE Assessments Palmer Lake East Assessments Unity Avenue Assessments TOTAL Kylawn Park 12/31/2014 138,750.00 15,725.00 177,752.00 332,227.00 12/31/2015 133,125.00 15,087.50 125,664.00 273,876.50 12/31/2016 127,500.00 14,450.00 120,768.00 262,718.00 12/31/2017 121,875.00 13,812.50 115,872.00 251,559.50 1213112018 116,250.00 13,175.00 110,976.00 240,401.00 12/31/2019 110,625.00 12,537.50 106,080.00 229,242.50 12/31/2020 105,000.00 11,900.00 101,184.00 218,084.00 12/31/2021 99,375.00 11,262.50 96,288.00 206,925.50 12/31/2022 91,392.00 91,392.00 12/31/2023 86,496.00 86,496.00 Total $952,500.00 $107,950.00 $1,132,472.00 $2,192,922.00 Par Amounts Of Selected Issues Palmer Lake East 750,000.00 Unity Avenue 85,000.00 Kylaw n Park 816,000.00 TOTAL 1,651,000.00 Note: The above assessmentincome cash flow represents the outstanding principal of unpaid special assessments anticipated at the end of 2013. Prepayments of special assessments collected through October 2013 have or will be deposited into the construction fund and used to reduce the amount of borrowing. In addition, col I ections of special assessments for Pal mer Lake East and Unity Avenue that were paya ble in 2012 and 2013 were also deposited into the construction fund. Aggregate 110/31 ,2013 I )238 Springsted Page 17 City Council Agenda Item No. 10c COUNCIL I M MEMORANDUM DATE: November 12, 2013 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Providing for the Competitive Negotiated Sale of $ 6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013 A. Recommendation: It is recommended that the City Council consider approval/adoption of the Resolution Providing for the Competitive Negotiated Sale of $6,090,000, Taxable General Obligation Tax Increment Bonds, Series 2013 A. F Background: On August 26, 2013, the City Council and EDA considered the opportunities of acquiring the following properties: -6121 Brooklyn Boulevard, a 4.45 acre used car sales lot for $1,500,000 as part of the Reimaging of the Brooklyn Boulevard Corridor. -Lot 1, Block 1, Brookdale Square 2" Addition, a 23.2 acre commercial strip center within the City's Central Commerce District for the amount of $3,900,000. The discussions on the acquisitions of these properties were predicated on the use of Tax Increment District 3 Housing Funds and a Tax Increment Finance (TIF) District 3 Plan Modification to expand the budget to enable the use of Tax Increment revenues for eligible pooling expenditures. On September 23, 2013, the City Council adopted Resolution No 2013-115, A Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Modification of Tax Increment Financing District No. 3, and the Adoption of a Modification to Tax Increment Financing Plan. On October 28, 2013, the City Council/EDA's Work Session included a presentation by Tom Denaway, Analyst within the Management Consulting Services of Springsted Incorporated, the City's Financial Consultant on their analysis on this amendment to the Tax Increment Finance District No. 3 Plan and the proposed sales of a Tax Increment Revenue Bonds to fund the EDA's acquisitions of properties within the Opportunity Site and Brooklyn Boulevard Corridor. Attached for your reference are copies of the slides from the October 28th PowerPoint presentation which illustrate the structuring of this TIF Bond and its repayment during the remaining 8 years of the District (expiring in 2021). Last week, the EDA was approached by the property owner of 6031 Brooklyn Boulevard to acquire this property for the assessed market value of $105,900. Additionally, the property - Mission: Ensuring an attractive, clean, sale, inclusive community that enhances the quality of life Jos all people and preserves the public trust COUNCIL ITEM MEMORANDUM owner of the vacant commercial lot at 6245 Brooklyn Boulevard offered to sell his lot to the EDA for $280,000. Both properties are considered key parcels for the EDA to accomplish the reimaging vision within this corridor and the assembling of land to promote redevelopment opportunities. On November 12, 2013, the City Council will be conducting the public hearing on the Tax Increment District 3 Modification and the EDA will be considering accepting the voluntary sales offers/acquisition of these two additional properties. Attached is the Resolution authorizing the sales of the TIF bond and Springsted's recommendations for the Issuance of both the $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013 A and the $4,920,000 General Obligation Improvement Bonds, Series 2013B. Budget Issues: The repayment of this bond issue will be made from Tax Increment Revenue generated by TIF District 3. The $1,800,000 portion of the bond will be allotted to the Housing Fund Account and the remaining $4,200,000 will be allotted to Pooling Expenditures. 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Ls--) LJ-.) Ls-) cs:5- Lc)" LIS" Lc)" c_c5" c_c)4 4 4 4 4 4 4 4 LC) r--- oc) es)s—I c=:)N N a) Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $6,090,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2013A BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1.Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Brooklyn Center (the "City"), should issue $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013A, to finance the acquisition of land, certain demolition costs and other eligible expenses to promote redevelopment activity within the City. 2.Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Bonds. 3.Competitive Negotiated Sale. The City has retained Springsted Incorporated as an independent financial advisor, and the City Council hereby determines to sell the Bonds by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Bonds which are not published in any newspaper or journal. 4.Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby made a part hereof. 5. Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Springsted Incorporated in the preparation of an official statement for the Bonds. November 12, 2013 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. RESOLUTION NO. STATE OF MINNESOTA ) CITY OF BROOKLYN CENTER ) HENNEPIN COUNTY ) I, the undersigned, being the duly qualified and acting Clerk of the City of Brooklyn Center (the "City"), DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to the City's $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013A. WITNESS my hand as such Clerk of the City this day of , 2013. City Clerk RESOLUTION NO. EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $6,090,000 * CITY OF BROOKLYN CENTER, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2013A (BOOK ENTRY ONLY) Proposals for the Bonds and the Good Faith Deposit ("Deposit") will be received on Monday, November 25, 2013, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. (a)Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted Proposal. OR (b)Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY'. For purposes of the electronic bidding process, the time as maintained by PARITY ® shall constitute the official time with respect to all Bids submitted to PARITY ®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY ® for purposes of submitting its electronic Bid in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents nor PARITY ® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY ®. The City is using the services of PARITY ® solely as a Preliminary; subject to change. RESOLUTION NO. communication mechanism to conduct the electronic bidding for the Bonds, and PARITY ® is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms of Proposal shall control. Further information about PARITY®, including any fee charged, may be obtained from: PARITY®, 1359 Broadway, 2" Floor, New York, New York 10018 Customer Support: (212) 849-5000 DETAILS OF THE BONDS The Bonds will be dated as of the date of delivery, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2014. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts* as follows: 2015 $260,000 2018$275,000 2021 $2,140,000 2016$265,000 2019 $330,000 2022 $2,215,000 2017$270,000 2020 $335,000 The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public. RESOLUTION NO. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to confolin to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the Proposal form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax increment revenues derived from Tax Increment District No. 3 located in the City's Redevelopment Project Area No. 1. The proceeds will be used to finance the acquisition of land, certain demolition costs and other eligible expenses to promote redevelopment activity within the City. TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in gross income of the recipient for United States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and bank excise taxes measured by net income. RESOLUTION NO. BIDDING PARAMETERS Proposals shall be for not less than $6,041,280 plus accrued interest, if any, on the total principal amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity must be 98.0% or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. GOOD FAITH DEPOSIT Proposals, regardless of method of submission, shall be accompanied by a Deposit in the amount of $60,900, in the form of a certified or cashier's check, a wire transfer, or Financial Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated have any liability for delays in the transmission of the Deposit. Any Deposit made by certified or cashier's check should be made payable to the City and delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101. Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's agent according to the following instructions: Wells Fargo Bank, N.A., San Francisco, CA 94104 ABA #121000248 for credit to Springsted Incorporated, Account #635-5007954 Ref: Brooklyn Center, MN Series 2013A Good Faith Deposit Contemporaneously with such wire transfer, the bidder shall send an e-mail to bond services@springsted.com , including the following information; (i) indication that a wire transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies, and (iv) the return wire instructions if such bidder is not awarded the Bonds. Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City following the award of the Bonds. Any Deposit made by check or wire transfer by an unsuccessful bidder will be returned to such bidder following City action relative to an award of the Bonds. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota and pre-approved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that underwriter is required to submit its Deposit to the City in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. RESOLUTION NO. The Deposit received from the purchaser, the amount of which will be deducted at settlement, will be deposited by the City and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder's Proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT On or about December 19, 2013, the Bonds will be delivered without cost to the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation RESOLUTION NO. to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded up to 25 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated November 12, 2013 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson City Clerk 2.00% 1 00':■■ 0.00% 000000 47'e ,0 e 41" e e 4t, eeee e 41,'" e e e •■'-‘b 0 4' 4b •■<'' 7 00% 6.00% 500% 4.00% CC 300% —30-Year —10-Year 10/31/2013 30-yr. 3.63% 10-yr. 2.57% City of Brooklyn Center, Minnesota Recommendations for Issuance of Bonds $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2013A $4,920,000 General Obligation Improvement Bonds, Series 2013B The Council has under consideration the issuance of bonds to finance (i) the acquisition of approximately 28.7 acres of land located within the City, and certain demolition activities thereon, for the purpose of facilitating redevelopment activities and transportation improvements; and (ii) various street reconstruction projects within the City. This document provides information relative to the proposed issuance. KEY EVENTS: The following summary schedule includes the timing of some of the key events that will occur relative to the bond issuance. November 12, 2013 Week of November 11, 2013 November 25, 2013, 10:00 a.m. November 25, 2013, 6:00 p.m. December 19, 2013 Council sets sale date and terms Rating conference is conducted Competitive proposals are received Council considers award of bonds Proceeds are received RATING: An application will be made to Standard & Poor's Ratings Services for ratings on the bonds. The City's general obligation debt is currently rated "AA" by S&P. THE MARKET: Interest rates for the taxable municipal market are quoted as a spread to U.S. Treasury Securities. To give you an indication of the relative position of that market, the chart below tracks the yield of the 10-year and 30-year U.S. Treasury over the last five years. 10-year and 30-year Treasury Rates for Five Years Ending October 31, 2013 Dates Prepared by Springs/ed Incorporated SpringstedA ----88125 Bond — BBI 70 Bond 30%eeeeeee e eNO' 41' 41' 41' ,§1, 41- 0, 41, op, 419 41, $1,,scp 41, 45 1/46,..5 q..<1, 45 ,45 ,ss,'? 41' t.0 ,seP Dates Prepared by Springsted incorporated Performance of the tax-exempt market is often measured by the Bond Buyer's Index ("BBI") which measures the yield of high grade municipal bonds in the 20t , year for general obligation bonds (the BBI 20 Bond Index) and the 30 ,1, year for revenue bonds (the BBI 25 Bond Index). The following chart illustrates these two indices over the past five years. BBI 25-bond (Revenue) and 20-bond (G.0.) Rates for 5 Years Ending 10/31/2013 POST ISSUANCE The issuance of these bonds will result in post-issuance compliance responsibilities. The COMPLIANCE: responsibilities lie in two primary areas: i) compliance with federal arbitrage requirements and ii) compliance with secondary disclosure requirements. Note: the federal arbitrage requirements do not apply to taxable obligations such as the Series 2013A Bonds. Federal arbitrage requirements include a wide range of implications that have been taken into account as your issue has been structured. Post-issuance compliance responsibilities for your tax-exempt issue include both rebate and yield restriction provisions of the IRS Code. In very general terms the arbitrage requirements control the earnings on unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. The arbitrage rules provide an exception from rebate provisions for gross proceeds that are spent within a 6-month period. The City expects to meet the 6-month spending exception in regards to the Series 2013B Bonds and gross proceeds that meet the test will qualify for an exception to rebate. Certain proceeds may remain subject to rebate and yield restriction provisions will still apply to the debt service fund and any proceeds that remain unspent after three years. Secondary disclosure requirements result from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospective underwriter will require the City to commit to providing the information needed to comply under a continuing disclosure agreement. Springsted Page 2 SUPPLEMENTAL INFORMATION AND BOND RECORD: Springsted currently provides arbitrage and continuing disclosure compliance services to the City under separate contracts. Contract amendments adding these issues will be provided to City staff. Supplementary information will be available to staff including detailed terms and conditions of sale, comprehensive structuring schedules and information to assist in meeting post- issuance compliance responsibilities. Upon completion of the financing, bond records will be provided that contain pertinent documents and final debt service calculations for the transactions. $6,090,000 Taxable General Obligation Tax Increment Bonds, Series 2073A Description of Issue PURPOSE: AUTHORITY: The City's Economic Development Authority (EDA) has been pursuing opportunities to purchase land from willing sellers in order to facilitate the City's redevelopment and transportation improvement goals, in conformance with the City's Comprehensive Plan. TIF No. 3 housing set-aside revenue collections will be used to purchase at least two properties totaling approximately 5 acres located in the Brooklyn Boulevard Corridor, and pay for demolition activities and other eligible costs. The total acquisition and demolition costs are estimated at $1,800,000. The larger of the two parcels is commercially zoned property that was previously occupied by a car dealership. The City's 2012 Brooklyn Boulevard Corridor Study identified these parcels as possible sites for future housing development. In particular, the site of the prior car dealership property and an adjacent parcel previously acquired by the EDA, has been identified as a possible location for a senior assisted care living facility. TIF No. 3 excess pooled revenue collections will be used to purchase approximately 23.2 acres located in the City's Opportunity Site identified in the City's Comprehensive Plan as a potential mixed use redevelopment area, purchase another half-acre parcel located in the Brooklyn Boulevard Corridor, and pay for other eligible costs. The total cost of land acquisition is estimated at $4,200,000. The 23.3 acre parcel is currently occupied by the Brookdale Square retail strip center and three commercial free standing buildings. As of the date of these recommendations the City is finalizing the land purchase contracts for the land acquisitions. If for some reason one or more of the purchase contracts are not concluded prior to the final stages of this bond sale process, the City could decide not borrow for all the land acquisitions at this time, thus reducing the principal amount of the Series 2013A Bonds. It has been determined that the Series 2013A Bonds will be taxable as the proceeds of the Series 2013A Bonds are being used for a private purpose and the land is expected to be sold to a private party. Statutory Authority: The Series 2013A Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. Springsted Page 3 Statutory Requirements: Coincidental with the issuance of the Series 2013A Bonds, the City is taking the required actions to modify its Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 3 (the "District") to include the acquisition of additional property and the issuance of the Series 2013A Bonds. The modifications to the TIF Plan do not include extending the term of the District. SECURITY AND The Series 2013A Bonds are general obligations of the City secured by its full faith and SOURCE OF credit and taxing power. The Series 2013A Bonds are expected to be repaid with tax PAYMENT: increment revenues derived from the District, which are already being collected from new development within the District. In association with City Staff, Springsted prepared an update of the tax increment cash flow projections for the District and determined that the District will be able to support the additional expenses of the land acquisition being financed by the Series 2013A Bonds. The updated tax increment cash flow projections are considered to be conservative based on certain assumptions regarding delinquencies and incremental market value growth. First-half collection of tax increment revenues will pay the interest due on the Series 2013A Bonds on August 1 of the year of collection; second-half collections plus surplus first-half collections will pay the principal and interest due February 1 of the following year. STRUCTURING At the direction of the City, Springsted prepared a cash flow for TIF No. 3 that (i) identified SUMMARY: the 15% Housing Fund transfer to be used to fund certain parcels expected to be redeveloped into housing and (ii) the remaining excess pooled TIF No. 3 tax increment revenues designated to pay for parcels to be redeveloped with activities other than housing. The estimated purchase price for each parcel and their corresponding tax increment revenue collections have been used to structure the Series 2013A Bonds with two distinct purposes. The total tax increment revenue collections are projected to be in excess of the total debt service requirements on the Series 2013A Bonds; approximately 2.0 times coverage ($2.00 of annual revenues per $1.00 of debt service) in the first six years and approximately 1.2 times coverage in the last two years. SCHEDULES ATTACHED: Attachments include: O Sources and uses of funds O Net debt service schedules for the Series 2013A Bonds as a whole and by purpose O Tax Increment Financing District No. 3 Updated Cash Flow Projections RISKS/SPECIAL The outcome of this financing will rely on the market conditions at the time of the sale. Any CONSIDERATIONS: projections included herein are estimates based on current market conditions. As noted below, the Series 2013A Bonds will not be callable prior to maturity. The City will not have an opportunity to restructure the Series 2013A Bonds in the event tax increment revenue collections vary significantly from projections. Furthermore, the City cannot extend the final term of the Series 2013A Bonds because the final year of tax increment collection is in 2021 (collections in 2021 will make the August 1, 2021 interest payment and February 1, 2022 principal and interest payment on the Series 2013A Bonds). SALE TERMS AND Variability of Issue Size: A specific provision in the sale terms permits modifications to the MARKETING: issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Springsted Page 4 Prepayment Provisions: Based on the short duration of the Series 2013A Bonds, and to avoid possible negative pricing impacts, the Series 2013A Bonds will not be subject to redemption prior to their stated maturities. Bank Qualification: Bank qualification limits do not apply to taxable issues such as the Series 2013A Bonds. PURPOSE: AUTHORITY: $4,920,000 General Obligation Improvement Bonds, Series 20138 Description of Issue Proceeds of the Series 2013B Bonds will be used to reimburse the City for a portion of the cost of various street reconstruction projects, including Palmer Lake East and Unity Avenue/Shingle Creek Parkway street improvements both completed in 2012, and Kylawn Park Area street improvements, which will be substantially completed by year end 2013. The City has initially financed these projects from its Street Reconstruction Fund with the intent to reimburse the Street Reconstruction Fund from bond proceeds. Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Statutory Requirements: Minnesota Statutes, Chapter 429 states that at least 20% of the project costs being financed under the statute are required to be specially assessed against benefitted properties. SECURITY AND The Series 2013B Bonds are general obligations of the City secured by its full faith and SOURCE OF credit and taxing power. In addition the City will pledge special assessments against PAYMENT: benefitted properties. The City will be required to levy taxes to pay a portion of the debt service. The City will make their first levy for the Series 2013B Bonds in 2013 for collection in 2014. Each year's collection of taxes and assessments will be used to make the August 1 interest payment due in the collection year and the February 1 principal and interest payment due in the following year. STRUCTURING The Series 2013B Bonds have been structured around projected future special SUMMARY: assessment collections to result in relatively even annual levy requirements. However, principal due in the first levy cycle (February 1, 2015) was structured to achieve a net levy of approximately $687,000, which is the City's 2014 budgeted debt service levy for the Series 2013B Bonds. The first year levy was allocated between the three projects based on a percentage of each project's budgeted Street Reconstruction Fund contribution. Assessments have been filed and certified for all three projects, and substantial prepayments of assessments have been received. Special assessment collections through 2013 have or will be deposited into the construction fund, thus reducing the amount the City needs to borrow for the street reconstruction projects. City staff provided an estimate of the anticipated remaining unpaid principal on the assessments, after second-half 2013 assessment collections, which have been used to size the principal amount of the Series 2013B Bonds. All assessments were spread over a term of 10 years, and are paid with equal principal payments. Interest on the unpaid principal balance was Springsted Page 5 charged at a rate of 6.0%. Further details of special assessments by project are detailed in the following table: SCHEDULES ATTACHED: Date Assessments Certified Remaining Principal Balance of Unpaid Special Assessments Final Year of Assessment Collections Allocation of First Year Levy of $687,000 Palmer Lake East 2-14-2011 $750,000 2021 52% Unity Avenue 2-14-2011 $85,000 2021 3% Kylawn Park 1-14-2013 $816,000 2023 45% Attachments include: O Sources and uses of funds O Net debt service schedules for the Series 2013B Bonds as a whole and by purpose O Projected future special assessment collections by project The outcome of this financing will rely on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions. Variability of Issue Size: A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Prepayment Provisions: Based on the short duration of the Series 2013B Bonds, and to avoid possible negative pricing impacts, the Series 2013B Bonds will not be subject to redemption prior to their stated maturities. Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt obligations that count against its $10 million limit for this calendar year; therefore, the Series 2013B Bonds will be designated as bank qualified. RISKS/SPECIAL CONSIDERATIONS: SALE TERMS AND MARKETING: _.)pringsted Page 6 $6,090,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Land Purchases Total Issue Sources And Uses Dated 12/19/2013 I Delivered 12/19/2013 Sources Of Funds Parcels Paid from Housing Set-Aside Parcels Paid from Excess Pooled Collections Issue Summary Par Arrount of Bonds $1,825,000.00 $4,265,000.00 $6,090,000.00 Total Sources $1,825,000.00 $4,265,000.00 $6,090,000.00 Uses Of Funds Land Purchase 1 1,665,000.00 3,900,000.00 5,565,000.00 Land Purchase 2 135,000.00 300,000.00 435,000.00 Total Underwriter's Discount (0.800%) 14,600.00 34,120.00 48,720.00 Costs of Issuance 12,016.83 28,083.17 40,100.00 Rounding Amount (1,616.83)2,796.83 1,180.00 Total Uses $1,825,000.00 $4,265,000.00 $6,090,000.00 2013 Tarabk TIF 2013- L II3sue Summary I 11, 6/2013 I 417 PH Springsted Page 7 $6,090,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Land Purchases NET DEBT SERVICE vs. REVENUE Date Principal Coupon Interest Total P+I 105% Overlevy Revenue Surplus TIF Collections 02/01/2014 0210112015 260,000.00 0.900%197,471.33 457,471.33 480,344.90 973,809.68 493,464.78 02/01/2016 265,000.00 1.250%174,500.00 439,500.00 461,475.00 975,297.18 513,822.18 02/01/2017 270,000.00 1.700%171,187.50 441,187.50 463,246.88 960,797.18 497,550.31 02/01/2018 275,000.00 2.150%166,597.50 441,597.50 463,677.38 974,422.18 510,744.81 02/01/2019 330,000.00 2.500%160,685.00 490,685.00 515,219.25 1,076,547.18 561,327.93 02/0112020 335,000.00 2.900%152,435.00 487,435.00 511,806.75 1,084,697.18 572,890.43 02/01/2021 2,140,000.00 3.150%142,720.00 2,282,720.00 2,396,856.00 2,976,947.18 580,091.18 02/01/2022 2,215,000.00 3.400%75,310.00 2,290,310.00 2,404,825.50 2,976,947.18 572,121.68 Total $6,090,000.00 - $1,240,906.33 $7,330,906.33 $7,697,451.65 $11,999,464.94 $4,302,013.29 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $39,770.50 Average Life 6.530 Years Average Coupon 3.1201678% Net Interest Cost (NIC) 3.2426706% True Interest Cost (TIC) 3.2478293% Bond Yield for Arbitrage Ftarposes 3.1100573% All Inclusive Cost (AIC) 3.3761693% 2013 Taxable 711,2013 -L 11/6/2013 8:47A71 Springsted Page 8 $1,825,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Parcels Paid from Housing Set-Aside NET DEBT SERVICE vs. REVENUE Date Principal Coupon Interest Total P+I 105% Overlevy Revenue Surplus TIF Collections 02/01/2014 - 02/01/2015210,000.00 0.900%46,654.33 256,654.33 269,487.05 446,542.08 177,055.03 02/01/2016 215,000.00 1.250%39,890.00 254,890.00267,634.50 446,542.08 178,907.58 02/01/2017 220,000.00 1.700%37,202.50 257,202.50 270,062.63 446,542.08 176,479.46 02/01/2018 225,000.00 2.150%33,462.50 258,462.50 271,385.63446,542.08 175,156.46 02/01/2019 230,000.00 2.500%28,625.00 258,625.00 271,556.25446,542.08 174,985.83 02/01/2020 235,000.00 2.900%22,875.00 257,875.00 270,768.75 446,542.08 175,773.33 02/01/2021 240,000.00 3.150%16,060.00 256,060.00 268,863.00 446,542.08 177,679.08 02/01/2022 250,000.00 3.400%8,500.00 258,500.00 271,425.00 446,542.08 175,117.08 Total $1,825,000.00 - $233,269.33 $2,058,269.33 $2,161,182.80$3,572,336.64 $1,411,153.84 2013 Taxable TIE 2013 - LIParcels Paid from TE 3 HI 11/6/2013 I 8:47AAI Springsted Page 9 $4,265,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2013A TIF No. 3 - Parcels Paid from Excess Pooled Collections NET DEBT SERVICE vs. REVENUE Date Principal Coupon Interest Total P+I 105% Overlevy Revenue Surplus TIF Collections 02/01/2014 02/01/2015 50,000.00 0.900%150,817.00 200,817.00 210,857.85 527,267.60 316,409.75 02/01/2016 50,000.00 1.250%134,610.00 184,610.00 193,840.50 528,755.10 334,914.60 02/01/2017 50,000.00 1.700%133,985.00 183,985.00 193,184.25 514,255.10 321,070.85 02/01/2018 50,000.00 2.150%133,135.00 183,135.00 192,291.75 527,880.10 335,588.35 02/01/2019 100,000.00 2.500%132,060.00 232,060.00 243,663.00 630,005.10 386,342.10 02/01/2020 100,000.00 2.900%129,560.00 229,560.00 241,038.00 638,155.10 397,117.10 02/01/2021 1,900,000.00 3.150%126,660.00 2,026,660.00 2,127,993.00 2,530,405.10 402,412.10 02/01/2022 1,965,000.00 3.400%66,810.00 2,031,810.00 2,133,400.50 2,530,405.10 397,004.60 Total $4,265,000.00 - $1,007,637.00 $5,272,637.00 $5,536,268.85 $8,427,128.30 $2,890,859.45 2013 Tarable TIF 2013 -L Parcels Paid fromTIE 3 E I IF 6/2013 I 847 AA1 Springsted Page 10 Q.& 3 f,Ul LII 8 Fsi C OL6 [H • i 't3 • c?i 1L1 c`? 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Co a, v-1 ,-1 ,-1 , , ,-1 " ° N U Springsted Page 11 $4,920,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Issue Summary Total Issue Sources And Uses Dated 12/19/2013 I Delivered 12/19/2013 Sources Of Funds Palmer Lake East Unity Avenue Kylawn Park Issue Summary Par Arnount of Bonds $2,450,000.00 $190,000.00$2,280,000.00 $4,920,000.00 Total Sources $2,450,000.00$190,000.00 $2,280,000.00$4,920,000.00 Uses Of Funds Street Reconstruction Fund 1,655,707.48 105,645.17 1,423,805.15 3,185,157.80 Remaining Assessment Portion 750,000.00 85,000.00 816,000.00 1,651,000.00 Total Underwriter's Discount (0.900%) 22,050.00 1,710.00 20,520.00 44,280.00 Costs of Issuance 17,877.02 1,386.39 16,636.59 35,900.00 Rounding Amount 4,365.50 (3,741.56)3,038.26 3,662.20 Total Uses $2,450,000.00 $190,000.00$2,280,000.00 $4,920,000.00 201311 GO Imp BOW'S Issue Stumm, 10/29/2013 1:05 Springsted Page 12 $4,920,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Issue Summary NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I105% of Total Assessment Levy Required 02/01/2014 --- 02/01/2015 885,000.00 0.600%82,488.17 967,488.17 1,015,862.58 332,227.00 683,635.58 02/01/2016 530,000.00 0.750%68,560.00 598,560.00 628,488.00 273,876.50 354,611.50 02/01/2017 525,000.00 1.000%64,585.00 589,585.00 619,064.25 262,718.00 356,346.25 02/01/2018520,000.00 1.350%59,335.00 579,335.00 608,301.75 251,559.50 356,742.25 02/01/2019515,000.00 1.650%52,315.00 567,315.00 595,680.75 240,401.00 355,279.75 02/01/2020 510,000.00 1.950%43,817.50553,817.50 581,508.38 229,242.50 352,265.88 02/01/2021 515,000.00 2.200%33,872.50 548,872.50 576,316.13 218,084.00 358,232.13 02/01/2022 510,000.00 2.350%22,542.50 532,542.50559,169.63 206,925.50 352,244.13 02/01/2023 205,000.00 2.500%10,557.50 215,557.50 226,335.38 91,392.00 134,943.38 02/01/2024 205,000.00 2.650%5,432.50 210,432.50 220,954.13 86,496.00 134,458.13 Total $4,920,000.00 - $443,505.67 $5,363,505.67 $5,631,680.95 $2,192,922.00 $3,438,758.95 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $23,389.00 Average Life 4.754 Years Average Coupon 1.8962148% Net Interest Cost (NIC) 2.0855345% True Interest Cost (TIC) 2.0842911% Bond Yield for Arbitrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.2496606% IRS Form 8038 Net Interest Cost 1.8962148% Weighted Average Maturity 4.754 Years 2013B GO hp Bonds I Issue Summary 10/29/2013 I 1.-05 PM Springsieci Page 13 $2,450,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Palmer Lake East NET DEBT SERVICE SCHEDULE Date PrincipalCoupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015 430,000.00 0.600%39,021.92 469,021.92 492,473.02 138,750.00 353,723.02 02/01/2016 295,000.00 0.750%32,365.00327,365.00 343,733.25 133,125.00 210,608.25 02101/2017 290,000.00 1.000%30,152.50 320,152.50336,160.13 127,500.00 208,660.13 02/01/2018 290,000.00 1.350%27,252.50 317,252.50 333,115.13121,875.00 211,240.13 02/01/2019 285,000.00 1.650%23,337.50 308,337.50 323,754.38116,250.00 207,504.38 02/01/2020 285,000.00 1.950%18,635.00 303,635.00318,816.75 110,625.00 208,191.75 02/01/2021 290,000.00 2.200%13,077.50 303,077.50318,231.38 105,000.00 213,231.38 02/01/2022 285,000.00 2.350%6,697.50 291,697.50306,282.38 99,375.00 206,907.38 Total $2,450,000.00 - $190,539.42 $2,640,539.42$2,772,566.39 $952,500.00 $1,820,066.39 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $10,780.83 Average Life 4.400 Years Average Coupon 1.7673905% Net Interest Cost (NIC) 1.9719201% True Interest Cost (TIC). 1.9733156% Bond Yield for Arbrtrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.1504499% IRS Form 8038 Net Interest Cost 1.7673905% Weighted Average Maturity 4.400 Years 2013B GO hip Bonds Palmer Inke East 10/29/2013 I 1.-05 Spring sted Page 14 $190,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Unity Avenue NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015 30,000.000.600%2,978.71 32,978.71 34,627.65 15,725.00 18,902.65 02/01/2016 25,000.00 0.750%2,487.50 27,487.5028,861.88 15,087.50 13,774.38 02/01/2017 25,000.00 1.000%2,300.00 27,300.0028,665.00 14,450.00 14,215.00 02/01/2018 25,000.00 1.350%2,050.00 27,050.0028,402.50 13,812.50 14,590.00 02/01/2019 25,000.00 1.650%1,712.50 26,712.5028,048.13 13,175.00 14,873.13 02/01/2020 20,000.00 1.950%1,300.00 21,300.0022,365.00 12,537.50 9,827.50 02/01/2021 20,000.00 2.200%910.00 20,910.0021,955.50 11,900.00 10,055.50 02/01/2022 20,000.00 2.350%470.00 20,470.00 21,493.50 11,262.50 10,231.00 Total $190,000.00 - $14,208.71 $204,208.71 $214,419.15 $107,950.00 $106,469.15 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $822.17 Average Life 4.327 Years Average Coupon 1.7282031% Net Interest Cost (NIC) 1.9361901% True Interest Cost (TIC) 1.9375525% Bond Yield for Arbitrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.1172425% IRS Form 8038 Net Interest Cost 1.7282031% Weighted Average Maturity 4.327 Years 20I3B GO hip Bonds 10,0 Aveme 10/29/20/3 I I.-05 PAI Springsted Page 15 $2,280,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Kylawn Park NET DEBT SERVICE SCHEDULE Date PrincipalCoupon Interest Total P+I 105% of Total Assessment Levy Required 02/01/2014 02/01/2015 425,000.00 0.600%40,487.54 465,487.54 488,761.92 177,752.00 311,009.92 02/01/2016210,000.000.750%33,707.50 243,707.50255,892.88 125,664.00 130,228.88 02/01/2017210,000.00 1.000%32,132.50 242,132.50 254,239.13 120,768.00 133,471.13 02/01/2018205,000.00 1.350%30,032.50 235,032.50 246,784.13 115,872.00 130,912.13 02/01/2019 205,000.00 1.650%27,265.00 232,265.00 243,878.25 110,976.00 132,902.25 02/01/2020 205,000.00 1.950%23,882.50 228,882.50 240,326.63 106,080.00 134,246.63 02/01/2021 205,000.00 2.200%19,885.00 224,885.00 236,129.25 101,184.00 134,945.25 02/01/2022 205,000.00 2.350%15,375.00 220,375.00231,393.75 96,288.00 135,105.75 02/01/2023 205,000.00 2.500%10,557.50 215,557.50 226,335.38 91,392.00 134,943.38 02/01/2024 205,000.00 2.650%5,432.50 210,432.50 220,954.13 86,496.00 134,458.13 Total $2,280,000.00 - $238,757.54 $2,518,757.54 $2,644,695.42 $1,132,472.00 $1,512,223.42 Dated 12/19/2013 Delivery Date 12/19/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars $11,786.00 Average Life 5.169 Years Average Coupon 2.0257724% Net Interest Cost (NIC) 2.1998773% True Interest Cost (TIC) 2.1972831% Bond Yield for Arbltrage Purposes 1.8827575% All Inclusive Cost (AIC) 2.3508787% IRS Form 8038 Net Interest Cost 2.0257724% Weighted Average Maturity 5.169 Years 2013B GO hp Bonds I Kylown Park 10/29/2013 LOS PM Spriiigsted Page 16 $1,651,000 City of Brooklyn Center, Minnesota General Obligation Improvement Bonds, Series 2013B Projected Aggregate Assessment Collections DATE Assessments Palmer Lake East Assessments Unity Avenue Assessments TOTAL Kylawn Park 12/31/2014 138,750.00 15,725.00 177,752.00 332,227.00 12/31/2015 133,125.00 15,087.50 125,664.00 273,876.50 12/31/2016 127,500.00 14,450.00 120,768.00 262,718.00 12/31/2017 121,875.00 13,812.50 115,872.00 251,559.50 12/31/2018 116,250.00 13,175.00 110,976.00 240,401.00 12/31/2019 110,625.00 12,537.50 106,080.00 229,242.50 12/31/2020 105,000.00 11,900.00 101,184.00 218,084.00 12/31/2021 99,375.00 11,262.50 96,288.00 206,925.50 12/31/2022 91,392.00 91,392.00 12/31/2023 86,496.00 86,496.00 Total $952,500.00 $107,950.00 $1,132,472.00 $2,192,922.00 Par Amounts Of Selected Issues Palmer Lake East 750,000.00 Unity Avenue 85,000.00 Kylaw n Park. 816,000.00 TOTAL 1,651,000.00 Note: The above assessment income cash flow represents the outstanding pri nci pal of unpaid special assessments anticipated at the end of 2013. Prepayments of special assessments collected through October 2013 have or will be deposited i nto the construction fund and used to reduce the amount of borrowing. In addition, col I ecti ons of special assessments for Pal mer Lake East and Unity Avenue that were payable in 2012 and 2013 were also deposited into the construction fund. Aggregale I 10 31 2013 I 1238 PH Springsted Page 17 City Council Agenda Item No. 10d COUNCIL ITEM MEMORANDUM DATE: November 12, 2013 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Type IV 6-Month Provisional Rental License for 6713 Colfax Ave N Recommendation: It is recommended that the City Council consider approval of the Mitigation Plan and issuance of a Type IV 6-Month Provisional Rental License for 6713 Colfax Ave N. The applicant or representative has an opportunity to present evidence regarding the submitted Mitigation Plan. If the Council chooses to modify or disapprove the Mitigation Plan, it is recommended that the motion be to direct staff to prepare proposed findings for disapproval of the Mitigation Plan and notify the license applicant of any pending license actions to be taken at a subsequent Council Meeting. Background: This owner is applying for a new rental license. This property qualifies for a Type IV provisional rental license, based on 15 property code violations found during the initial rental license inspection. The property is a single-family residential property. 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: 08-20-2013 The Owner, Donald Speese, applied for an initial rental dwelling license for 6713 Colfax Ave N, a single-family residential property. 08-28-2013 An initial rental inspection was conducted. (15 property code violations were cited, see attached rental criteria) 08-28-2013 A second rental inspection was conducted and passed. 10-09-2013 A letter was sent to the owner(s) notifying of qualification for Type IV 6-Month Provisional Rental License, including additional requirements to obtain a rental license. I.e. submit mitigation plan, completion of Phases I, II, and III of Crime Free Housing Program, etc. 10-17-2013 A Mitigation Plan was submitted. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust COUNCIL ITEM MEMORANDUM 10-23-2013 The Mitigation Plan was finalized. 11-01-2013 A letter was sent to the owner notifying that the hearing before the Council will be held November 12, 2013. If approved, after six months, a new rental license is 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. 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. Mission: Ensuring an attractive, clean, safe, inclusive coninutnity that enhances the quality of life for all people and preserves the public trust COUNCIL ITEM MEMORANDUM 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. 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, inclusive community that enhances the quality of life for all people and preserves the public trust Type I — 3 Year 1-2 units 0-1 3+ units 0-0.75 - Property Code and Nuisance Violations Criteria License Category (Based on Property Code Only) Number of Units Property Code Violations per Inspected Unit 1-2 units 3+ units 1 -2 units 3+ units Greater than 1 but not more than 4 Greater than 0.75 but not more than 1.5 Greater than 4 but not more than 8 Greater than 1.5 but not more than 3 Type 11-2 Year Type III — 1 Year Type IV —6 Months 1 -2 units 3+ units - Greater than 8 Greater than 3 COUNCIL ITEM MEMORANDUM 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 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 Category Number of Units Validated Calls for Disorderly Conduct Service & Part I Crimes (Calls Per Unit/Year) No Category Impact ..... 1-2 0-1 3-4 units0-0.25 5 or more units 0-0.35 Decrease 1 Category 1-2 Greater than 1 but not more than 3 3-4 units Greater than 0.25 but not more than 1 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 Categories 1-2 Greater than 3 3-4 units Greater than 1 5 or more units Greater than 0.50 Budget Issues: Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust COUNCIL ITEM MEMORANDUM There are no budget issues to consider. Council Goals: Strategic Priorities: • Vibrant Neighborhoods Attachment - Mitigation Plan Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust I- City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430-2199 7 47013 Phone: 763-569-3300 TrY 711 Fax: 763-569-3360 www.cityofbrooklyncenterorg Rental License Mitigation Plan--Type IV Rental License Handwritten plans will not be accepted. Please type or use „tillable form on City website. Section A-.-•,- Property Information - Property Address: 671^ Co lfax.3 uulfax Avenue North Brooklyn Center, MN 55430. . °wn e r Nall:le: Neighborhood Youth Community DeV t:al AgentLoc Donald Speesb Owner Address: 7952 Ewing Avenue North Brooklyn Park MN 55443 Agent Address: 7952 Ewing Avenue North Brooklyn Park, MN 55443 Owner Phone 612-462-6239 Agent Phone: 612-462-6239 Owner Email:.Agent Email nycdbi@hotrnail.corn Rental License: New I 1 Renewal: Current ?Tending (Six months License Expiration Date: Type IV License Exp. Date: from current license exjiiration Based on property conditions and/or validated police nuisance incidents, the above referenced property qualifies for a Type IV Rental License. Before your license application can be considered by the City Council, a Mitigation Plan must be completed and reviewed by City staff. A fully completed Mitigation Plan must be submitted immediately to ensure timely completion of the license application process. The Mitigation Plan should indicate the steps being taken to correct identified violations and the measures that will be taken to ensure ongoing compliance with City Ordinances and applicable Codes. The Mitigation Plan provides an opportunity to review property concerns and identify possible solutions to improve the overall conditions and management of the property. NOTICE: Time is Running Out--You must TAKE ACTION NOW in order to meet all the city ordinance and Mitigation Plan requirements within this *pending license period and avoid legal actions. . Seetioir 13-RecigitèdD66iurtents ' 4 . Submit the following documents with the Mitigation Plan for approval: f I 11 Crime Free Housing Program Training Certificate (if completed, if not completed, please include scheduled date in Section C.1.. 1 1 2 Copy of Lease including Minnesota Crime Free Housing Lease Addendum 3. Submit written report by 10 th of each month (after license approval). Section C— Critne free Housing Progranf Recptirements Phase I . V 1 1. Use written lease including Crime Free Housing Lease Addendum.1 1 1 2. Conduct criminal background check for all prospective tenants. Provide documentation to City if requested. 3 Pursue the eviction of tenants who violate the terms of the lease or any addendums. Page 1 Type IV Mitigation Plan Rev 11-16-11 Li 4. Attend City approved eight hour Crime Free Housing course. Date Course Completed: /6/.241/;- or Date Course Scheduled: I I 1 I will conduct resident training annually that includes crime prevention techniques. I will hold regular resident meetings. Phase!! Complete Security Assessment and implement all security improvements recommended by the Brooklyn Center Police Department. kr*- Date Scheduled: 143 irt. Improvements to be completed by: 1C--c71) Phase IIII will attend a minimum of 50% of the ARM meetings (t o),..4 kr I will attend the ARM meetings scheduled for: _ II VI IC) - & Do these two meeting dates occur before the *Pending Type IV License expiration date? Yes n No yr(*See Section A) If no, you will only be able to qualify for a Type IV Rental License upon renewal./ For properties with four or more units: ::SedicinD — Long Term CdPital Improvements Plan Based on condition and age, estimated replacement dates are provided for common capital items. Funding should be considered accordingly. However, items broken, worn or otherwise in violation prior to the estimated replacement date will reciuire earlier corrections. Date Last Replaced Estimated Replacement Date Furnace/AC- Water Heater-01/2013 0112016 Kitchen Appliances-01/2003 01/2015 Laundry Appliances-01/2013 01/2016 Exterior -Paint/Siding, fascia, trim 08/2013 08/2018 -Windows 01/2008 01/2015 -Roof 01/2008 01/2028 -Fence 01/2005 01/2018 -Shed 01/2008 01/2021 -Garage NA NA -Driveway 01/2002 01/2016 -Sidewalks 0112002 01/2016 Smoke Alarms & Carbon Monoxide Alarms 08/2013 08/2016 Other(s) 1 I I will have no repeat code violations previously documented within the past year. Section Steps to IniPrOveAlanagenient and Conditions of Property Implementing the following best practices may assist in the management of your property. B checking the boxes below, you agree to:WA 1. Check in with tenants every 30 days.I 2. Drive by property to check for violations twice a month. Page 2 Type IV Mitigation Plan Rev 11-16-11 I 1 I 8.I am and will remain current on payment of utility fees, taxes, assessments, fines, penalties and other financial claims due to the City. 9.Other(s); II 1 DateOwner or Agent Sign Additional Owner or Agent Name and Title (if applicable) (Please Print) P lice Department / Title ( (Oa' Date Abb., 4, •ildin omntunity Standards Department / Title Page 3 Type IV Mitigation Plan Rev 1146-11 Please read thoroughly: 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 th of each calendar month, the licensee must submit to the Building and Community Standards Depar fluent a written report describing all steps taken to comply with the Mitigation Plan. verify that all information provided above is true and accurate. I understand that if I do not comply with an approved Mitigation Plan, comply with all applicable ordinances within the license period, or operate beyond the license expiration date; enforcement actions such as citations, formal complaint or license review may result. Neighborhood Youth Community Development-Donald Speese Owner or Agent Name and Title (Please Print) 10/17/2013 Additional Owner or Agent Signature (if applicable) Date 3 4. 5. 11Z-1 6. MIN Evict tenants in violation of the lease and all addendums. Provide lawn/snow service. Provide garbage service. Install security system. 7. Provide maintenance service plan for appliances. Name of service co.: or City Use —Mi(ation Plan Approved By: City Council Agenda Item No. 10e COUNCIL ITEM MEMORANDUM DATE: TO: FROM: SUBJECT: November 12, 2013 Curt Boganey, City Manager Sharon Knutson, City Clerk Type IV 6-Month Provisional Rental License for 5111 Drew Ave N Recommendation: It is recommended that the City Council consider approval of the Mitigation Plan and issuance of a Type IV 6-Month Provisional Rental License for 5111 Drew Ave N. The applicant or representative has an opportunity to present evidence regarding the submitted Mitigation Plan. If the Council chooses to modify or disapprove the Mitigation Plan, it is recommended that the motion be to direct staff to prepare proposed findings for disapproval of the Mitigation Plan and notify the license applicant of any pending license actions to be taken at a subsequent Council Meeting. Background: This owner is applying for a new rental license. This property qualifies for a Type IV provisional rental license, based on 12 property code violations found during the initial rental license inspection. The property is a single-family residential property. 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: 04-08-2013 05-07-2013 06-06-2013 06-21-2013 07-12-2013 08-01-2013 08-21-2013 The Owner, Kin Chew, applied for an initial rental dwelling license for 5111 Drew Ave N, a single-family residential property. An initial rental inspection was conducted. (12 property code violations were cited, see attached rental criteria) The owner requested an extension to complete the work orders. A follow-up inspection was conducted and failed. A second follow-up inspection was conducted and failed. A $100 reinspection fee was charged to the property. The $100 reinspection fee was paid. A second rental inspection was conducted and passed. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for people and preserves the public trust COUNCIL ITEM MEMORANDUM 09-04-2013 A letter was sent to the owner(s) notifying of qualification for Type IV 6-Month Provisional Rental License, including additional requirements to obtain a rental license. I.e. submit mitigation plan, completion of Phases I, II, and III of Crime Free Housing Program, etc. 09-27-2013 A second letter was sent to the owner(s) notifying of qualification for Type IV 6- Month Provisional Rental License, including additional requirements to obtain a rental license. I.e. submit mitigation plan, completion of Phases I, II, and III of Crime Free Housing Program, etc. 10-07-2013 A Mitigation Plan was submitted. 10-15-2013 The Mitigation Plan was finalized. 11-01-2013 A letter was sent to the owner notifying that the hearing before the Council will be held November 12, 2013. If approved, after six months, a new rental license is 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. 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 Mission: Ensuring an attractive, clean, safe, inclusive conzmunity that enhances the quality of life for ahipeople and preserves the public trust COUNCIL ITEM MEMORANDUM 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. Rental License Category Criteria Policy — Adopted by City Council 03-08-10 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 perfoimance 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, Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for allpeople and preserves the public trust COUNCIL ITEM MEMORANDUM 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. Property Code and Nuisance Violations Criteria License Category (Based on Property Code Only) Number of Units Property Code Violations per Inspected Unit Type I — 3 Year 1-2 units 0-1 3+ units 0-0.75 Type II — 2 Year 1-2 units Greater than 1 but not more than 4 3+ units Greater than 0.75 but not more than 1 5 Type III — 1 Year 1-2 units Greater than 4 but not more than 8 3 units Greater than 1.5 but not more than 3 Type IV — 6 Months 1-2 units Greater than 8 3+ units Greater than 3 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 purposes of deteimining 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). Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust Validated Calls for Disorderly Conduct Service & Part I Crimes (Calls Per Unit/Year) License Category Number of Units No Category Impact -2 3-4 units 5 or more units 0-1 0-0.25 0-0.35 Decrease 1 Category 1-2 Greater than 1 but not more than 3 Greater than 0 25 but not more than 13-4 units 5 or more units Greater than 0.35 but not more than 0.50 1-2 3-4 units 5 or more units Greater than 3 Greater than 1 Greater than 0.50 Decrease 2 Categories COUNCIL ITEM MEMORANDUM Budget Issues: There are no budget issues to consider. Council Goals: Strategic Priorities: • Vibrant Neighborhoods Attachment - Mitigation Plan Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430-2199 ottr Phone: 763-569-3300 TTY 711 Fax: 763-569-3360/ 4 g., www.cityofbrooklyncenter.org gill • Rental License Mitigation Plan—Type INT Rental License Handwritten plans will not be accepted. Please type or use fillable form on city website. Section .A.-; Property,InformatiOn Property Address: 5111 Drew Ave Owner Narne: Kin Mun Chew Local Agent: Kathytny Freitag Owner Address: 1241 Osceola St at Paul mMN 55105 Agent Address: 15689 Yellow Pine ST NW, Andover MN 55304 Owner Phone: 9 52 _451_35 3 7 Agent Phone: 7632450755 Owner Email:chewkinmun@gmail.com Agent Email:kathleen3280@msn.com Rental License: INI New I I Renewal: Curet *Pendilg (Six months t License Expiration Date: Type IV License Exp. Date: from cumnt license expiration) Based on property conditions and/or validated police nuisance incidents, the above referenced property qualifies for a Type IV Rental License. Before your license application can be considered by the City Council, a Mitigation Plan must be completed and reviewed by City staff. A fully completed Mitigation Plan must be submitted immediately to ensure timely completion of the license application process. The Mitigation Plan should indicate the steps being taken to correct identified violations and the measures that will be taken to ensure onaoine compliance with City Ordinances and applicable Codes. The Mitigation Plan provides an opportunity to review property concerns and identify possible solutions to improve the overall conditions and management of the property. NOTICE: Time is Running Out--You must TAKE ACTION NOW in order to meet all the city ordinance and Mitigation Plan requirements within this *pending license period and avoid legal actions. Section, B— Required Documents - submit the following documents with the Mitigation Plan for approval: 1 Crime Free Housing Program 'Training Certificate (if completed, if not completed, please include scheduled date in Section C. 2, Copy of Lease including Minnesota Crime Free Housing Lease Addendum 3. Submit written report by 10 1h of each month (after license approval). I I I I.1 Section ;04,- Crime Free Housing Tro'gram Requirements .. P e 1 I. Use written lease including Crime Free Housing Lease Addendum. 2. Conduct criminal background check for all prospective tenants. Provide documentation to City if requested. I 3 Pursue the eviction of tenants who violate the terms of the lease or any addendums. /I l 1 I 1 Page 1 Type IV Mitigation Plan Rev 11-16-11 i 4. Attend City approved eight hour Crime Free Housing course. Date Course Completed: 5/2010 or Date Course Scheduled: Phase III,/ Complete Security Assessment and implement all security improvements recommended by the Brooklyn Center Police Department, Date Scheduled: 10 '04-13 Improvements to be completed by: 10-05-2013 Phase III1 ,/ 11 will attend a minimum of 50% of the ARM meetings (two). I will attend the ARM meetings scheduled for: No v 14,2013 e4 Jan2014 Do these two meeting dates occur before the *Pending Type IV License expiration date? E Yes I I No (*See Section A) If no, you will only be able to qualify for a Type IV Rental License upon renewal. I 1 I I will have no documentedrepeat code violations previously within the past year. For properties with fintr or more units: I I will conduct resident training annually that includes crime prevention techniques.I I I will hold regular resident meetings. . , . •.Sectitilf:DILong'Terni C a pital Improvements Plan Based on condition and age, estimated replacement dates are provided for common capital items. Funding should be considered accordingly. However, items broken, worn or otherwise in violation prior to the estimated replacement date will require earlier corrections. Date Last Replaced Estimated Replacement Date 2020Furnace/AC 1970 Water Heater-2010 2020 Kitchen Appliances-2012 2032 Laundry Appliances-2010 2020 Exterior -Paint/Siding, fascia, trim 2012 2052 -Windows 2012 2052 -Roof 2012 2052 -Fence 2012 2052-Shed 2012 2052-Garage 2012 2052-Driveway 1970 2030-Sidewalks 2000 2060 Smoke Alarms & Carbon Monoxide Alarms 2013 2023 Other(s) SecticskEHsteog to Improve :MAluigerrient and Conditioris'OUPriiperly Implementing the following best practices may assist in the management of your property. By checking the boxes below, you agree to:II 1 1 I. Check in with tenants every 30 days. I i I 2. Drive by property to check for violations twice a month. Page 2 Type IV Mitigation Plan Rev 11-16-11 1:01.ci:-) 1_ -Nliiigiltion n): /ad) 'e leiC Police Department / Title 4/10u I divftti tbilajo unity Standards Department/ Title Date +1■0 3 Evict tenants in violation of the lease and all addendum&Ell 4 . Provide lawn/snow service. 5.Provide garbage service. 6.Install security system. 7.Provide maintenance service plan for appliances. Name of service co.: 8.lainIam and will remain current on payment of utility fees, taxes, assessments, fines, penalties and other Financial claims due to the City.II I 9. Other(s): Please read thoroughly: 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 1 of each calendar month, the licensee must submit to the Building and Community Standards Department a written report describing all steps taken to comply with the Mitigation Plan. I verify that all information provided above is true and accurate. I understand that if! do not comply with an approved Mitigation Plan, comply with all applicable ordinances within the license period, or operate beyond the license expiration date; enforcement actions such as citations, formal complaint or license review may result, 09-23-13 Date Additional Owner or Agent Name and Title (if applicable) (Please Print) Additional Owner or Agent Signature (7/'applicable) Date Page 3 Type IV Mitigation Plan Rev 11 -16 -11 AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION TUESDAY, November 12, 2013 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.BC University 2.Inclusion and Diversity Follow Up — Community Engagement Strategies 3.Consideration of Modifying Setback Requirements for Front Porches 4.Citywide Environmental and Sustainability Efforts Update 5.Sister City Voinjama Visit Update 6.Garbage Hauler — Minnesota Pollution Control Agency (MPCA) Presentation Parking Lot Issues 1. Joint Meeting with Charter Commission