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HomeMy WebLinkAbout2014 02-24 CCM Study Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION FEBRUARY 24,2014 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, Planning and Zoning Specialist Tim Benetti, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Ryan requested discussion on Item 6c, Annual Report on Franchise Fees, in particular, how franchise fees are determined and whether the City has the legal authority to negotiate directly with the two utility companies to increase the franchise fees. He asked if that option could be considered by the Financial Commission. City Manager Curt Boganey explained the City has two franchise agreements, each with a different length of time. The CenterPoint Energy contract is currently under negotiation but the Xcel Energy franchise agreement goes for another ten years. He explained those agreements were originally negotiated with intertwined rates so it would present some difficulty to uncouple those two agreements for the length of the remaining contract term. Councilmember Ryan thanked Mr. Boganey for that explanation, noting franchise fees are passed through from the utility company to the City so, in a way, it is a type of tax. He stated it would be helpful if the City was able to make an adjustment so it is able to continue funding capital improvement projects into the future. City Administrator Curt Boganey stated staff will present additional background information and address the City's latitude relating to renegotiation when it presents the new CenterPoint agreement. Councilmember Kleven requested the following correction to the Study Session minutes of February 10, 2014: 02/24/14 -1- Page 1, fifth paragraph: "packet contains Park and Recreation Commission minutes with the some same typographical errors." Councilmember Lawrence-Anderson requested the following correction to the Regular Session minutes of February 10, 2014: . Page 4, sixth paragraph: Staff to add full address for Sheku Samba. It was the majority consensus of the City Council to accept the correction to the February 10, 2014, Study Session and Regular Session minutes. Councilmember Myszkowski asked how many out of State owners have rental licenses in Brooklyn Center. Mr. Boganey indicated staff would provide that information. Mr. Boganey noted the City Council had been provided with a revised resolution for Item 6d, Resolution Approving Projected of Funds for 2014 Urban Hennepin County Community Development Block Grant Program, Authorizing Signature of Subrecipient Agreement with Hennepin County and Any Third Party Agreements,to include $3,500 for Avenues for Homeless Youth. MISCELLANEOUS Youth in City Government Councilmember Kleven stated Youth in City Government will be on March 24, 2014, and the application deadline is February 28, 2014. She asked whether any applications have been received. Mr. Boganey stated he will provide that information in the weekly update. E-Cigarettes Councilmember Myszkowski informed the City Council about a New York Times article on e- cigarettes that encompassed the discussion that had taken place in Brooklyn Center. Mayor Willson stated Mr. Boganey had provided the City Council with an article relating to the impact of third-hand smoke. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS DISCUSSION REGARDING A LETTER OF INTENT AND EXCLUSIVE NEGOTIATING AGREEMENT WITH RIDGECREST INVESTORS, LLC FOR THE COMMERCIAL DEVELOPMENT OF LOT 1,BLOCK 1,NORTHBROOK CENTER 2ND ADDITION (TOLD DEVELOPMENT—57TH AND LOGAN) Director of Business and Development Gary Eitel reviewed that in 2013 staff met with Jeff Budish of CBRE and Trent Mayberry of Told Development to discuss the potential interest of 02/24/14 -2- Told Development in the acquisition of the Brookdale Square site and partnering with the EDA on a mixed use residential and commercial development, similar to their Excelsior and Grand projects in St. Louis Park. Mr. Eitel explained at that time, Told Development expressed reservation with taking on an additional residential project but were very interested in pursuing the potential commercial development of the 57h and Logan Avenue site as there were similarities with this eight acre site to The Shops of Wedgewood that they were completing in the City of Maple Grove (northwest quadrant of I-494 and Bass Lake Road). Mr. Eitel displayed a slide of the subject site and described the location of Lot 1,Block 1 that is under discussion. Mr. Eitel stated their interest had been spearheaded because a national user was looking at Brooklyn Center; however, the name of that company was confidential at that time. He stated Told Development was provided with a copy of the City's Development Guidelines and a draft Letter of Intent using standard commercial language. That Letter of Intent has been reviewed by City Attorney LeFevere. Mr. Eitel explained that as the Letter of Intent evolved, the confidentiality of the national user went away so Told Development was more comfortable with pursuing a Development Agreement. Mr. Eitel displayed a slide of the 8.5-acre PUD project and described the types of uses that it would include a Hilton Garden Inn, two multi-tenant commercial buildings, Fairview Clinic, and a CVS Pharmacy. Mr. Eitel also displayed graphics of the Shops at Wedgwood located in the City of Maple Grove, noting it is an attractive design including exterior brick treatments. Mayor Willson asked about the electrical line easement and if the utility company supported construction of an access road. Mr. Eitel described the location of that Xcel Energy transmission line,noting it is an overhead line so Xcel Energy does do not object. Mr. Eitel presented the terms of the Letter of Intent and Exclusive Negotiating Agreement. There was discussion on the position of the MPCA. Mr. Boganey stated staff is confident there are no environmental issues with this particular property that would preclude its development. He stated when this property was subdivided, staff assured the lower portion had no indication of contamination on that site. Mr. Boganey stated that documentation will be provided to the developer. Mr. Eitel asked the City Council whether it found the conceptual development plan, as submitted by Told Development, to be consistent with its development vision for this site. He asked the City Council to provide direction regarding proceeding with a Letter of Intent and Exclusive Negotiating Agreement with Ridecrest Investors, LLC for the commercial development of Lot 1,Block 1,Northbrook Center 2'(T Addition(Told Development 57th and Logan). Mayor Willson stated he has no problem with the proposed user for the 16,000 sq. ft. pad. He asked about users for the other pads and whether there is a finite time to fill those pads. He explained the Development Agreement would be broken down into phases with the anchor tenant within Phase One as it will drive this development. 02/24/14 -3- Mayor Willson noted that control is lost if the property is sold outright and asked how the EDA can assure the project proceeds. Mr. Boganey stated that should be addressed in the Development Agreement, noting it may be a subject of contention/negotiation but the EDA has final control as it can decide whether or not to sell the property. He explained the need to balance the interests of the City (the property being back on the tax rolls, development commencing) against the City's desire to assure the property becomes fully developed over a period of time. Mayor Willson stated this is a concern of the City Council and asked staff to assure it is addressed. He asked if there is an opportunity for recourse should only the anchor be constructed. He also asked if that should occur, could the land then revert back to the EDA. Mr. Boganey stated that point would have to be negotiated with the developer. Mayor Willson noted that Embassy Suites was required to return a second parcel when it failed to construct the walkway. He suggested consideration of a similar restriction with Told Development. Councilmember Ryan agreed that the City needs to negotiate a desirable position so there are conditions/guarantees the developer will pursue the rest of the site. Mr. Eitel noted the developer makes money by constructing buildings and it is thought the anchor tenant will drive this project. He stated staff will assure, through the Development Agreement,that the City's interests are protected. Councilmember Ryan stated he is also concerned with the properties on the other side of Logan Avenue (side bungalows). Mr. Eitel stated that will be addressed by orienting the center building towards the center of the project. In addition,there will be sufficient boulevard area. Discussion of this item continued and reached conclusion at the February 24, 2014 Work Session. ADJOURNMENT Councilmember Myszkowski moved and Councilmember Ryan seconded to close the Study Session at 6:45 p.m. Motion passed unanimously. 02/24/14 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Study/Work Session of the City Council of the City of Brooklyn Center held on February 24, 2014. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its March 10, 2014, Regular Session. City Clerk Mayor 02/24/14 -5-