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-