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2015 08-10 CCP Regular Session
AGENDA CITY COUNCIL STUDY SESSION August 10, 2015 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. City Council Discussion of Agenda Items and Questions 2.Miscellaneous a. Draft Letter to Metro Cities Housing Policy Committee 3.Discussion of Work Session Agenda Items as Time Permits 4. Adjourn CITY COUNCIL MEETING City of Brooklyn Center August 10, 2015 AGENDA AMENDED 08/10/15 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 informational 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 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. July 20, 2015 – Joint Work Session with Financial Commission 2. July 27, 2015 – Study/Work Session 3. July 27, 2015 – Regular Session b. Licenses c. Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 2014-13, Twin Lakes Regional Trail (Lake Point Segment) d. Resolution Calling for a Public Hearing on Proposed Special Assessments for Delinquent Nuisance Abatement Costs, Delinquent Administrative Fines/Citations, and Delinquent Administrative Vacant Building Registrations CITY COUNCIL AGENDA -2- August 10, 2015 e. Resolution Calling for a Public Hearing on Proposed Special Assessments for Delinquent Public Utility Service Accounts 7. Presentations/Proclamations/Recognitions/Donations a. Resolution Expressing Recognition and Appreciation for the Dedicated Public Service of Police Chief Kevin J. Benner Requested Council Action: –Motion to adopt resolution. 8. Public Hearing a. CenterPoint Energy Gas Franchise and Fees Ordinances 1. An Ordinance Continuing the Natural Gas Franchise Fees on the Operations of CenterPoint Energy Resources Corp in the City of Brooklyn Center –This item was first read on July 13, 2015; published in the official newspaper on July 23, 2015; and is offered this evening for second reading and Public Hearing. Requested Council Action: –Motion to open Public Hearing. –Take public input. –Motion to close Public Hearing. –Motion to adopt ordinance. 2. An Ordinance Granting CenterPoint Energy Resources Corp, d/b/a CenterPoint Energy Minnesota Gas (“CenterPoint Energy”), Its Successors and Assigns, a Nonexclusive Franchise to Construct, Operate, Repair and Maintain Facilities and Equipment for the Transportation, Distribution, Manufacture and Sale of Gas Energy for Public and Private Use and to Use the Public Ways and Grounds of the City of Brooklyn Center, Hennepin County, Minnesota, for such Purpose; and, Prescribing Certain Terms and Conditions Thereof –This item was first read on January 26, 2015; published in the official newspaper on February 5, 2015; heard in Public Hearing on February 23, 2015, and tabled until the franchise fees ordinance was heard; and is offered this evening for adoption. Requested Council Action: –Motion to adopt ordinance. 9. Planning Commission Items –None. CITY COUNCIL AGENDA -3- August 10, 2015 10. Council Consideration Items a. Consideration of Type IV 6-Month Provisional Rental Licenses 1. 5556 Emerson Avenue North 2. 5131 Howe Lane 3. Resolution Approving a Type IV Rental License for 7033 Unity Avenue North Requested Council Action: –Mayor poll audience for applicants to address Council. –Receive staff report. –Motion to open hearing. –Receive testimony from applicants in order. –Motion to close hearing. –Take action on rental license applications and mitigation plans. b. Mayoral Appointment of Member to Serve on Housing Commission Requested Council Action: –Motion to ratify Mayoral appointment. 11. Council Report 12. Adjournment City Council Agenda Item No. Ga 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 JULY 20, 2015 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 April Graves, Lin Myszkowski, and Dan Ryan. Councilmember Kris Lawrence-Anderson was absent and excused. Also present: City Manager Curt Boganey, Finance Director Nate Reinhardt, and Deputy City Clerk Maria Rosenbaum. Others present were Financial Commissioners Anna Burke, Steve Landis, Rex Newman, Dan Schueller (arrived at 6:57 p.m.), and Dean Van Der Werf. Councilmember Ryan moved and Councilmember Myszkowski seconded to approve this evening's agenda. Motion passed unanimously. 2016 BUDGET OVERVIEW City Manager Curt Boganey discussed this evening was to provide an overview of the proposed 2016 Budget and seek direction regarding the next steps in developing the 2016 preliminary property tax levy. Finance Director Nate Reinhardt presented a PowerPoint Presentation outlining the operating budget policies, budget goals and outcomes, revenue trends, expenditure trends, market value trends, preliminary property tax implications, and next steps. There was discussion regarding the Strengthened and Empowered Youth Goal and what the interest may be of the City Council to have a study done to inquire what the impact would if reduced fees/more affordable youth programs were made possible. Discussion continued with questions and answers regarding the PowerPoint slides. The question was raised if there was consensus for levy increase. Each Council Member and Financial Commission expressed their thoughts on what the levy increase should be and there was consensus for a maximum 6.48 percent levy increase and direction to seek further analysis for ways to reach a lower levy increase. 07/20/15 -1- DRAFT MISCELLANEOUS There were no miscellaneous items discussed. FUTURE BUDGET DISCUSSIONS Listed with the materials were future budget discussions which included August 5, August 17, and September 14, 2015. ADJOURNMENT Councilmember Ryan moved and Councilmember Graves seconded to adjourn the Work Session at 8:10 p.m. Motion passed unanimously. 07/20/15 -2- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPTN AND THE STATE OF MINNESOTA STUDY/WORK SESSION JULY 27, 2015 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:01 p.m. ROLL CALL Mayor Tim Willson and Councilmembers April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, City Attorney Troy Gilchrist, and Denise Bosch, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Myszkowski noted a correction to the draft Planning Commission minutes of July 16, 2015, on page 4: Councilmembers Commission members agreed with this suggestion. Councilmember Lawrence-Anderson requested that the name of the park where her daughter's graduation party was held be changed from Highland Park to Kylawn Park under Item 11, Council Report of the July 13, 2015, Regular Session minutes. Councilmember Graves asked how she should handle it when a statement recorded in the minutes was not recorded quite how she said it. Her statement was about being careful about redevelopment and not pushing certain groups out of the neighborhood. She wanted to clarify that she was specifically talking about issues like gentrification and that word was not used in the minutes. Mayor Willson stated that she could say that she wants to make a change and if the City Council does not have any objections, the change would be made. City Manager Boganey stated that there is a City Council policy to submit substantial changes to the minutes in writing. Councilmember Graves stated she felt the statement was ambiguous and that someone could misconstrue it, but she is not too worried about it. 07/27/15 -1- DRAFT Councilmember Ryan suggested that if Councilmember Graves has a point and it is involving a policy issue that it is helpful to have the minutes clear on what was said. It was the majority consensus of the City Council to accept the correction the July 13, 2015, Regular Session minutes. Councilmember Lawrence-Anderson requested discussion on item 6E, Resolution Amending Special Assessment Levy Roll Nos. 19058 and 19059 to Provide for Deferment of Special Assessments. She asked how long the deferral was. Mr. Boganey stated that the deferral is until the property is sold or paid off. Councilmember Ryan asked if the interest rate was 6%. Public Works Director/City Engineer Steve Lillehaug stated that the deferred interest rate is 4%. Councilmember Lawrence-Anderson commented on Item 6b, Rental Licenses. She pointed out that four properties had a prior TYPE IV rental license and a now are a TYPE I rental license. She felt that this was encouraging. MISCELLANEOUS Mayor Willson spoke about a number of events coming up that were not free. By statute a Councilmember may receive a free ticket/meal if they are speaking. He spoke about the upcoming National Night Out held on August 3 and 4. He also stated that he has been asked to participate in the City's CSI Police Program on August 12. He stated that Councilmember Ryan is attending two events for him. Mayor Willson also reported he will be attending an event in Maple Grove for the Voinjama Multilateral High School Alumni Association on August 1. Councilmember Ryan stated he plans to attend the Organization of Liberians in Minnesota event on August 1. Mr. Boganey stated he sent out an e-mail from the North Metro Mayor's Association regarding an event hosted at the executive director's home. He stated that there is no charge for the event and if any Councilmember would like to attend, to let the hostess know. The event will be held July 31. Councilmember Myszkowski stated she did attempt to RSVP online but it did not work. Mayor Willson stated he has been asked to speak at a TakeAction Minnesota event. He will provide Councilmembers with information regarding this event. Councilmember Lawrence-Anderson stated that she would like permission to attend her own neighborhood National Night Out gathering on August 4. Mayor Willson asked Councilmember Lawrence-Anderson to let the appropriate people know 07/27/15 -2- DRAFT that she won't be riding with police officers. Councilmember Graves asked how Councilmembers observe National Night Out. Mayor Willson explained that there is a kick off at Centennial Park on Monday, August 3. On August 4 Councilmembers ride with police officers to various neighborhood parties. The Police Chief has determined the ride schedule in the past. Councilmember Ryan stated that he has been following the Met Council's amendment to the housing policy plan. He stated that he failed to identify specific language related to a change in the affordable housing allocation formula. ,He stated that given the City's complaint, he would be interested in finding out what has been resolved. Mayor Willson stated that he was with Attorney Myron Orfield and Mayor Debbie Goettel from Richfield. They all read the document that the Met Council released and agreed that there are a few words changed but that was it. Councilmember Ryan stated that was his conclusion also. He thought it would be of interest to the City to present some general recommendation language to the Metro Cities Housing Policy Committee. Mr. Boganey asked when the Committee will be meeting again. Mayor Willson stated that Attorney Orfield and Mayor Goettel agreed that the language is there but it is not being enforced. Councilmember Ryan stated that the next Metro Cities Housing Policy Committee meeting will be August 14 and the next City Council meeting will be August 10. Mr. Boganey stated that that will give the City a chance to have something drafted. He will have the City prepare a document to be submitted for consideration by the Metro Cities Housing Policy Committee as part of their policy recommendation. He will give it to Attorney Orfield for feedback and will not submit anything before the City Council reviews it. Councilmember Ryan stated he would not want to write the document himself but would want it done by an expert. Mr. Boganey stated that he would have to convince the other members of the committee to submit the document. Councilmember Ryan replied affirmatively. Councilmember Ryan stated that Mr. Boganey had mentioned at last year's meeting when the Metro Cities' policies were being approved by the body of the general participants that given the City's complaint and in order to be consistent, the City should regularly speak out. Councilmember Myszkowski stated that Councilmembers know how difficult it is to talk about the challenges in Brooklyn Center. 07/27/15 -3- DRAFT Councilmember Ryan thanked Mr. Boganey for providing policy information he requested regarding the Highway 252 conversion to a freeway. He will bring this information to a committee he is serving on. Mr. Boganey stated that the City's response is that it should advocate for Highway 252 to transition from a highway to a freeway. The City should also advocate for this transition in the Department of Transportation's long-range plans. Councilmember Ryan stated he felt that it was better to get something through Public Works that was authoritative. Mayor Willson stated that he wants to make sure other Councilmembers are aware of what is going on with this issue. Mr. Boganey will distribute the policy information to Councilmembers. Mayor Willson commented that he had been asked to tie a ribbon on his mailbox to commemorate the one-year anniversary of an individual being killed on 73rd Avenue N. by a drunk driver. Councilmember Graves stated that she will be on vacation from August 12 to 16. Councilmember Ryan stated he will be on vacation from August 28 to September 5. Mayor Willson stated that the Council on Asian Pacific Minnesotans is giving their report on July 28 and he cannot make it. Councilmember Ryan stated he will attend the meeting for Mayor Willson. ADJOURNMENT Councilmember Lawrence-Anderson moved and Councilmember Ryan seconded to adjourn the Study Session at 6:36 p.m. Motion passed unanimously. 07/27/15 -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 JULY 27, 2015 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 April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, 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 Troy Gilchrist, and Denise Bosch, TimeSaver Off Site Secretarial, Inc. Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum. Shane High, 7001 Morgan Avenue N., stated that he has been collecting flags for a flag retirement ceremony as part of his Eagle Scout project. He asked about the process to conduct the ceremony. Mayor Willson stated that Brooklyn Center residents are allowed to have a wood fire and that Mr. High should talk with City Manager Curt Boganey regarding the logistics. Mr. Boganey will be in contact with Mr. High. Brian Pratt, 6110 Brooklyn Boulevard, and Connie Jung, 6110 Brooklyn Boulevard, spoke on behalf of the Brooklyn Center American Legion. They are requesting flexibility to use their 20 day administrative land permit in different increments to allow for hosting more charitable and fundraising events. Mr. Boganey stated that the City will work with the Legion regarding this request. Mayor Willson stated that he prefers to closely follow the ordinance but would not be opposed to exploring a different arrangement if the Legion could provide him with more information. Mr. Pratt stated that he sees other businesses that are allowed flexibility and would like same arrangement while staying within the 20 days that are allowed. 07/27/15 -1- DRAFT Steve Erickson, NHACC, announced the Wingstop Restaurant grand opening on July 29 at 3 P.M. Councilmember Ryan moved and Councilmember Myszkowski seconded to close the Informal Open Forum at 6:53 p.m. Motion passed unanimously. 2.INVOCATION Mayor Willson requested a moment of silence for the recent gun violence across the country. 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 April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, 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 Troy Gilchrist, and Denise Bosch, TimeSaver Off Site Secretarial, Inc. 5.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Myszkowksi moved and Councilmember Ryan seconded to approve the Agenda and Consent Agenda, as amended, with an amendment to the Regular Session minutes of July 13, 2015, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1.July 6, 2015— Joint Work Session with Financial Commission 2.July 13, 2015— Study Session 3.July 13, 2015— Regular Session 4.July 13, 2015— Work Session 6b. LICENSES GARBAGE HAULER 07/27/15 -2- DRAFT Waste Management - Blame MECHANICAL A & A Heating and Air Air Comfort Htg & A/C Air-It Indoor Comfort Hoffman Refrigeration & Heating Precision Heating & Cooling, Inc. River City Sheet Metal Inc. Select Mechanical Services RENTAL INITIAL (TYPE II— two-year license) 7119 Major Avenue N. 4501 Woodbine Lane RENEWAL (TYPE III— one-year license) 3401-3413 47th Avenue N. Ryan Lake Apartments 1100 69th Avenue N. 4216 Lakebreeze Avenue 1207 65th Avenue N. 1606 71st Avenue N. 4935 Abbott Avenue N. 5321 Fremont Avenue N. 10050 Naples Street NE, Blame 12065 th Avenue S., Buffalo 19170 Jasper Street NW, Anoka 10524 Quebec Avenue N., Brooklyn Park 5660 Memorial Avenue N., Stillwater 3650 Chestnut Street, Chaska 8290 Main Street NE, Fridley 6219 Cambridge Street, St. Louis Park David Bannister Jerad Morey Royal Property Management Evangelical Lutheran Church of the Master Missing CPTED and ARM Meeting Paul Sustman Tech Ung Missing CPTED Gregory Lang Robert Anderson Larry Norals RENEWAL (TYPE H— two-year license) 7256 Unity Avenue N. CHDC LTD Partnership Unity Place 5245-47 Drew Avenue N.Mai Xiong 320764 th Avenue N.Willard Weisberg. 5701 Bryant Avenue N.Lin Shuang LLC 5507 Judy Lane David Sheets 5525 Logan Avenue N.Alan Sandeen RENEWAL (TYPE I— three-year license) 340765 th Avenue N.Chris Kohler Granite City Apartments 3912 61St Avenue N.Nazneen Khatoon 132068 th Lane N.Rachel Omao 6831 Drew Avenue N.David Gardner 2331 Ericon Drive Scott Terhaar 6724 France Avenue N.Jessica Stoll 5548 Humboldt Avenue N.Roger Logan 07/27/15 -3- DRAFT 4207 Lakeside Avenue #222 Don Stenberg 7208 Perry Court E. Vincent Okonkwo 6c.RESOLUTION NO. 2015-114 AUTHORIZING THE ADDITION OF A LEAVE DONATION POLICY FOR CITY EMPLOYEES 6d.RESOLUTION NO. 2015- 115 DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES AT CERTAIN PROPERTIES IN BROOKLYN CENTER, MN 6e. RESOLUTION NO. 2015-116 AMENDING SPECIAL ASSESSMENT LEVY ROLL NOS. 19058 AND 19059 TO PROVIDE FOR THE DEFERMENT OF SPECIAL ASSESSMENTS 61. RESOLUTION NO. 2015-117 ESTABLISHING IMPROVEMENT PROJECT NO. 2016-05, 57TH AVENUE STREET IMPROVEMENTS 6g. RESOLUTION NO. 2015-118 ESTABLISHING IMPROVEMENT PROJECT NO. 2016-06, FREEWAY BOULEVARD STREET IMPROVEMENTS Motion passed unanimously. 7.PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 7a. RESOLUTION NO. 2015-119 EXPRESSING RECOGNITION AND APPRECIATION OF BENJAMIN FREEDMAN FOR HIS DEDICATED PUBLIC SERVICE ON THE PLANNING COMMISSION Mayor Willson read in full a Resolution expressing recognition and appreciation for Benjamin Freedman's significant contributions as a member of the Planning Commission. Councilmember Ryan moved and Councilmember Myszkowski seconded to adopt RESOLUTION NO. 2015-119. Motion passed unanimously. 8.PUBLIC HEARINGS 8a. ORDINANCE NO. 2015-09 AMENDING CHAPTER 35 OF THE CITY CODE OF ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND GENERALLY LOCATED IN THE SOUTH SECTION OF THE CITY, GENERALLY SITUATED BETWEEN HWY 100 TO THE WEST, BROOKLYN BOULEVARD TO THE EAST AND HAPPY HOLLOW PARK TO THE SOUTH, AND LOCALLY IDENTIFIED AS 5120 LILAC DRIVE NORTH 07/27/15 -4- DRAFT Planning and Zoning Specialist Tim Benetti introduced the item, discussed the history, and stated the purpose of the proposed ordinance. He also reported on the companion recommendation by the Planning Commission regarding the traffic study findings and architectural and screening elements and stated that the City was committed to working with the school to address issues. This item was first read on June 22, 2015; published in the official newspaper on July 2, 2015; and is offered this evening for second reading and Public Hearing. Councilmember Graves asked about the parent drop off process. Mr. Benetti pointed out the proposed parent drop off process. Councilmember Graves commented that she used to work as security at the Roseville School District and was in charge of a swinging gate. She stated that she thought that this was a well- executed project with good ideas. Councilmember Ryan stated that traffic has been concern from the beginning of this proposal and unfortunately the new Brooklyn Boulevard exchange will not be done prior to construction of the school. He asked Staff if they were confident the interim measures put in place will be sufficient. Mr. Benetti reiterated steps taken to address traffic concerns and stated that the City will work with the school regarding possible future traffic issues. Councilmember Ryan stated that the proposal would not have gone forward without a positive traffic study/situation. Mr. Benetti stated that the City would not have approved a project that funneled traffic through the neighborhood. Councilmember Ryan stated that he would not have voted for a project that would have funneled traffic through the neighborhood. Mayor Willson asked if traffic through the neighborhood would ever be considered. Mr. Benetti replied that the City would not support that and the intent is to keep traffic localized. Most of the students will be bused; staff members will come before and after peak times; and, there will not be northbound movement from 51St by the buses. Councilmember Ryan moved and Councilmember Graves seconded to open the Public Hearing. Motion passed unanimously. J. Kou Vang, 2557 Maplewood Drive, St. Paul, Development Manager with CS Property New Millennium Academy, LLC, introduced himself and stated that he and Yee Yang, Executive Director of New Millennium Academy will answer any questions Councilmembers may have. Jerry Evans, 5049 Brooklyn Boulevard, referenced the school's intention to set aside $150,000 for a traffic light if it is needed. He asked what a traffic light costs. 07/27/15 -5- DRAFT Mayor Wilson stated that the school would work with Hennepin County and the City if a traffic light is needed. Mr. Boganey stated that $150,000 is the estimated cost of the light. Mr. Evans asked about absolute enforcement of buses not being able to make left hand turns onto Brooklyn Boulevard. Mayor Willson stated that the school will work with the bus company and in his opinion the City Council will make sure this is an absolute. Mr. Evans asked if the swing gate would be down at all times. Mayor Willson replied that it would be down during school hours. Mr. Evans requested that it be down at all times and questioned whether emergency vehicles could get through. Mayor Willson stated that it was his understanding that the gate would be down during the school hours and he would assume that emergency vehicles could go through the gate. Mr. Evans asked if the gate would be up or down for off-hour concerts and events and if there is enough parking. He also asked if the school is working with the church on parking. Mayor Willson replied that he would seek answers to Mr. Evan's questions. Mr. Evans asked how many children would be attending the school and stated that it was his understanding that 90% of the children would be bused and 10% would be dropped off. Mayor Willson replied that there would be 500-750 students at the school. Mr. Evans stated that would mean there would be a minimum of 50 cars coming in and out. He thinks that something will need to be done to get more students on buses and less parents coming in and out. He stated that he is not against the school but is against the traffic issues the school will cause. He asked the location of the building referenced earlier as an example of the exterior of the school. Mayor Willson replied that the building was at Shingle Creek Crossing. Mr. Evans asked about the traffic enforcement officer on Brooklyn Boulevard as a traffic management option. Mayor Willson stated that this person would be a trained traffic control person hired by the school. 07/27/15 -6- DRAFT Mr. Evans stated that he has tried to direct traffic himself in the wake of an accident and it has not worked. He spoke about the need for a program to educate people on pedestrian safety in a residential area. Mayor Willson stated that there would need to be enough police to hand out tickets to people not following the rules of roads. Mr. Evans stated his concern about the power of the traffic enforcement officer. Mayor Willson stated that any firm brought in by the school would have to be vetted. Dennis Larson, 8209 Ewing Avenue N, Brooklyn Park, Brookdale Covenant Church member, expressed concern about the bus route that runs across the front entrance of church. He suggested going parallel along Brooklyn Boulevard rather than cutting through the parking lot. He assured the City Council and the school that the church is anxious to make the parking lot available for off-hour events and he feels that the two parking lots will be more than adequate. Robyn Socha-Hanson, 5813 Irving Avenue N, stated that she lives by Earle Brown Elementary School and finds the discussions about traffic humorous. She stated that these issues can all be worked out and welcomed the school to the neighborhood. She stated she likes to see new additions to the City and that she attends Brookdale Covenant Church. Tracina Henderson, 7725 Tessman Drive, Brooklyn Park, New Millennium Academy employee, stated that she thinks the issues can be worked out and that this is a good school. She spoke about the positive experience her daughter had at the school. Jorri Carter, 2914 53rd Avenue N, asked why the buses cannot make left turns onto Brooklyn Boulevard. Mayor Willson replied that it is very difficult to make a left hand turn out of that site. Mr. Carter asked how many buses are expected to be at the site at one specific time. It was indicated there would be 12 buses. Mr. Carter asked about adjusted times for school hours and voiced his support for the school noting that he would be affected traffic-wise. He would be trying to make a left turn himself and thinks he would be patient with 12 buses. George Lucht, 8457 Rice Lake Road, Maple Grove, owner of Malmborg's, stated he has been concerned about traffic control for many years, but the new Brooklyn Boulevard exchange will solve a lot of the issues. He stated his concern for the safety of his customers. He spoke about the daily car count at Malmborg's for May of 2015, which was 500 per day and did not include employees or business trucks, etc. He thinks the change will be great when it is done, noting what the school is offering to address traffic issues is beneficial. He stated his wish for a traffic signal, but acknowledged the expense. 07/27/15 -7- DRAFT Melanie Tapelt, 5042 Lilac Drive N., stated that the gate is a high priority for her and it will aid in accessing her driveway. She feels that the school is a good thing as long as a fence is put in so she is not bothered by the noise. Maureen Dougherty, 5037 Lilac Drive N., stated that previous school enrollment projections were 450 students with eight buses and now the projection is 750 students with 12 buses. She does not think 12 buses is realistic and thinks this issue needs to be dealt with. She feels the peak time in the morning may have been underestimated and needs to be revisited. She spoke about the private road owned by the church that needs to be improved and has potholes that are nine inches deep. She stated that the church has told the neighbors it is the City's responsibility and the City has told the neighbors it is private property. She asked that someone help neighbors understand what they can do to get the road improved. Mayor Willson asked Mr. Benetti about the land and who takes care of it. Mr. Benetti replied that the City will eventually take the land as an easement in a land swap agreement. This will happen at the time of the new Brooklyn Boulevard exchange. Mayor Willson stated that the City will eventually own the land and have to maintain it. Ms. Dougherty asked what neighbors should do in the meantime. Mayor Willson replied that it is private land and the City has no responsibility. Ms. Dougherty asked what the church's responsibility is if they are going to own the land for another two years. Mayor Willson replied that it would be up to church. Ms. Dougherty stated that neighbors would like it blocked off. Mayor Willson suggested that the issue be taken up with the church. Ms. Dougherty stated that the church has not been willing to work with neighbors. She would like the real number of children that will be bused in and the numbers of parents dropping off. She stated she has no issue with the school, but wants to know who is going to have accountability for issues when they arise. She would like Mr. Yang to go on record as to how the school will address future issues. Mayor Willson stated that the community will have to work with the school and traffic issues will be worked on by the City and City Council. Ms. Dougherty stated she was hoping there would be a third party or someone accountable to work with the neighbors. Tom Lehman, Brookdale Covenant Church Council Chairman, spoke about the reduction in traffic when going from business traffic (Malmborg's) to school traffic. Mayor Willson stated that he thought the concern is afternoon traffic. 07/27/15 -8- DRAFT Mr. Lehman stated that from the Church's perspective the amount of traffic is plummeting. He talked about the issue of the Church's private road and stated that he was unaware that the City did not own the land. He asked how private property becomes liable for a road that people are choosing to drive on that is not public. He stated that the road is not in good repair and there have been discussions regarding a land swap. In the interim, he understands the frustrations that the neighbors have with the private road, but there are other City streets that can be used as an alternative. Mayor Willson asked if the church had posted signs. Mr. Lehman replied that there were no signs posted and the road will be fixed when the land swap is done. He pointed out that the 51st intersection has been identified as the ninth most dangerous intersection in Hennepin County. Mayor Willson suggested looking into posting signs and liability issues now that the land has been identified as private land. Mr. Lehman stated that maybe it could be shut down now. Mayor Willson stated that we live in a litigious society. Mr. Lehman stated that the church is vibrant but not wealthy and paving a road that it will not own in three years is not the church's priority. He spoke about current tutoring collaboration with Northport Elementary School and the church's wish to serve its community. Mayor Willson stated he was not aware of the church's relationship with Northport but is glad to hear of it. Mr. Lehman spoke about the challenges Northport faces and that the church is happy to have a small impact and is looking forward to partnering with New Millennium Academy. He sees the new school and the church as being a hub for positive partnerships to give kids more options. Mr. Evans asked if the school would be comprised of primarily Hmong children. Mayor Willson stated that it is a charter school and he would not guess it would be a segregated school, but he does not know for sure. Yee Yang, 12255 81st Avenue N., Brooklyn Park, Executive Director of New Millennium Academy, stated that the school would be 95% Hmong population and would be open to anybody. Mr. Evans stated that 95% of the students would be from another country and learning the English language and the parents may not speak English. He asked if the specific number of non-English speaking parents was known. Mayor Willson stated that English as a second language is an issue for immigrant populations whether it be the parents or the kids. He doesn't see that as a problem. Mr. Evans asked what happens when the children are able to speak English and won't need to go to the school. He asked how long the school would continue. Mayor Willson stated that this is not a question for the City Council to determine. 07/27/15 -9- DRAFT Mr. Evans stated that it is up to the City to make wise decisions for the community and not spend money on a school that may not last more than 5-10 years. Mayor Willson stated that the City isn't putting money into the school. Mr. Evans stated that the City still has some influence on what is happening with a piece of property. Mayor Willson stated that it would only be for zoning purposes. Mr. Evans stated that he is for the school and the question of who will be the next students was asked of him. Mayor Willson stated that that issue is not up to the City to determine. It is a charter school and has to meet the state statute for a charter school. Mr. Evans stated he is not against the school but is looking at the City buying into a system that will come up short. Mayor Willson stated that the City does not own the property. Mr. Evans stated that the City drives the zoning ordinances and asked if it was wise to go with a project for a few short years. Mayor Willson noted that is speculation and when other proposals come before the City, there is no focus on what may happen in the future. Mai Xiong, 6400 Humboldt Avenue N., shared her positive experience as a parent at the school. She stated that they looked for a school to better meet the needs of their kids and decided to move them to New Millennium Academy last year. She stated that the school has worked with her first grader's hearing impairment and her son's struggle with reading. She stated that the teachers and staff are caring. She stated she knows there is a concern about traffic and her and her husband are involved in the school's Parent Advisory Group. She talked about the difference in parent involvement between the New Millennium Academy and Earle Brown Elementary School. She stated that more cars in the parking lot mean that parents are more involved. She stated she is here to ask for City Council support to bring the school to the City. Melanie Tapelt, 5042 Lilac Drive N., spoke about her view of traffic from her balcony and disagreed with a previous speaker's opinion that the traffic in the area would change. Councilmember Ryan moved and Councilmember Graves seconded to close the Public Hearing. Motion passed unanimously. Councilmember Graves stated that she thinks it is important to remember that not all immigrants are coming from the same background. Councilmember Myszkowski stated that she was very impressed by the thoughtfulness of all those that came forward and this is the reason public policy takes a long time because it gives people time to think an issue through. She stated that change is difficult and it is difficult to lose Malmborg's. She stated she is greatly appreciative of the conversation and acknowledged that she is not totally comfortable but that she trusts the City's staff and is appreciative of the school because of the hoops they have gone through to address the traffic issue. She stated that she is 07/27/15 -10- DRAFT going to vote yes. She stated that she has lived in the community for 40 some years and values the importance of children and their potential. She welcomed the school to the community. Councilmember Ryan stated he has been engaged with the Happy Hollow neighborhood and can understand their anxiety. He stated that there will be considerable cooperation with the City and the school in the future and listed issues/elements that have already been addressed. He stated he will support the ordinance amendment to allow for the PUD to go forward. Councilmember Ryan moved and Councilmember Graves seconded to adopt ORDINANCE NO. 2015-09 Amending Chapter 35 of the City Code of Ordinances Regarding the Zoning Classification of Certain Land Generally Located in the South Section of the City, Generally Situated Between HWY 100 to the West, Brooklyn Boulevard to the East and Happy Hollow Park to the South, and Locally Identified as 5120 Lilac Drive North. Mayor Willson commented on his past involvement on the Planning Commission and his current involvement with the City as Mayor has given him a good understanding of the planning process. He stated he will support the ordinance and sees no reason not to support it. He welcomed the school to Brooklyn Center. Motion passed unanimously. 8b. ORDINANCE NO. 2015-10 AUTHORIZING THE CONVEYANCE OF PROPERTY AND THE LAND EXCHANGE AGREEMENT (3401 53RD AVENUE N) City Manager Curt Boganey introduced the item, discussed the history, talked about the process, provided a map of the property, and stated the purpose of the proposed ordinance. This item was first read on July 13, 2015; published in the official newspaper on July 16, 2015; and is offered this evening for second reading and Public Hearing. Councilmember Ryan stated his appreciation to staff for all the work to bring this to fruition. He stated his belief that people will use the trails once they are done. Mayor Willson stated that perhaps the trails will be used by millennials who move into the City's renovated housing. Councilmember Ryan moved and Councilmember Graves seconded to open the Public Hearing. Motion passed unanimously. No one wished to address the City Council. Councilmember Ryan moved and Councilmember Graves seconded to close the Public Hearing. Motion passed unanimously. 07/27/15 -11- DRAFT Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to adopt ORDINANCE NO. 2015-10 Authorizing the Conveyance of Property and the Land Exchange Agreement (3401 53rd Ave N) Motion passed unanimously. 9. PLANNING COMMISSION ITEMS 9a. PLANNING COMMISSION APPLICATION NO. 2015-006, SUBMITTED BY JORRI CARTER FOR SPECIAL USE PERMIT APPROVAL OF A SPECIAL HOME OCCUPATION ALLOWING A RECORDING STUDIO INSIDE A RESIDENTIAL DWELLING IN THE R-1 ONE FAMILY RESIDENCE DISTRICT, LOCATED AT 2914 53RD AVENUE NORTH Planning and Zoning Specialist Tim Benetti provided an overview of Resolution Regarding the Disposition of Planning Commission Application No. 2015-006, Submitted by Jorri Carter for Special Use Permit Approval of a Special Home Occupation Allowing a Recording Studio Inside a Residential Dwelling in the R-1 One Family Residence District, Located at 2914 53 id Avenue North and advised the Planning Commission recommended approval Of the resolution at its July 16, 2015, meeting. Mr. Benetti answered questions of the City Council regarding the request for special use permit approval of a special home occupation allowing a recording studio inside a residential dwelling in the R- 1 one family residence district at 2914 53rd Avenue North. Councilmember Myszkowski asked what the reason was for the discussion regarding business being conducted on a Sunday. Mr. Benetti replied that no Sunday hours was consistent with a previous special use permit and a Planning Commission member brought up the point that Sundays would be beneficial for the applicant and consistent with non-traditional hours that musicians keep. Councilmember Myszkowski stated that there was still not an obvious reason to her that hours needed to be limited on Sunday. Mr. Benetti stated that the City feels that residents should have an expectation of peace and quiet on Sundays. He stated that the applicant indicated he would like Sunday hours if possible and was fine with 12 p.m. to 4 p.m. Planning Commission members felt it would be fair to add the Sunday hours. Councilmember Myszkowski stated her opinion that people no longer feel that Sundays are a day of rest and that as a musician and music teacher she understands the need to record on Sunday. She doesn't have a problem with Sunday hours and doesn't see that it will be a disruption to the neighborhood. 07/27/15 -12- DRAFT Councilmember Lawrence-Anderson stated that if the neighbors have no issue, she has no issue. She would go with consensus of the Council if they don't want to have restrictions on Sunday. Councilmember Graves was curious about the fact that no instruments were allowed. She stated she is surprised that the applicant sought a permit and that it is indicative of a desire to be a responsible business owner and maybe the other precautions are a bit excessive but she understands the need to put it in writing. Mr. Benetti stated that there are no instruments. There is one person speaking lyrics into a microphone. He stated that part of the reason the applicant pursued a special use permit was it was part of his business plan. Councilmember Graves stated she liked to see this happening because it shows an entrepreneurial spirit and speaks to one of the City's strategic goals. 1. RESOLUTION NO. 2015-120 REGARDING THE DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 2015-006, SUBMITTED BY JORRI CARTER FOR SPECIAL USE PERMIT APPROVAL OF A SPECIAL HOME OCCUPATION ALLOWING A RECORDING STUDIO INSIDE A RESIDENTIAL DWELLING IN THE R-1 ONE FAMILY RESIDENCE DISTRICT, LOCATED AT 2914 53RD AVENUE NORTH Councilmember Ryan moved and Councilmember Graves seconded to adopt RESOLUTION NO. 2015-120 Regarding the Disposition of Planning Commission Application No. 2015-006, Submitted by Jorri Carter for Special Use Permit Approval of a Special Home Occupation Allowing a Recording Studio Inside a Residential Dwelling in the R-1 One Family Residence District, Located at 2914 53rd Avenue North. Motion passed unanimously. 10. COUNCIL CONSIDERATION ITEMS lOa. CONSIDERATION OF TYPE IV 6-MONTH PROVISIONAL RENTAL LICENSES Mayor Willson explained the streamlined process that will now be used to consider Type IV 6- Month Provisional Rental Licenses. Mayor Willson polled the audience and asked whether anyone was in attendance to provide testimony on any of the TYPE IV rental licenses as listed on tonight's meeting agenda. Seeing no one coming forward, Mayor Willson called for a motion on Agenda Items lOal through 100. lOal. 5401 OLIVER AVENUE NORTH 10a2. 4201 WINCHESTER LANE 100. RESOLUTION NO. 2015-121 APPROVING A TYPE IV RENTAL LICENSE FOR 1309 68 1h LANE NORTH 07/27/15 -13- DRAFT Councilmember Graves moved and Councilmember Myszkowski seconded to approve the issuance of a Type IV six-month provisional rental license and mitigation plan for the following: 5401 Oliver Avenue North; 4201 Winchester Lane; and, adopt RESOLUTION NO. 2015-121 Approving a Type IV Rental License for 1309 68th Lane North, with the requirement that the mitigation plans and all applicable ordinances must be strictly adhered to before renewal licenses would be considered. Motion passed unanimously. lOb. MAYORAL APPOINTMENT OF MEMBER TO SERVE ON PLANNING COMMISSION Mayor Willson stated that there was one application received from Susan Tade, 7111 Palmer Lake Circle. He stated that the City Clerk has sent notices to those persons who previously submitted an application for appointment to a Brooklyn Center advisory commission informing them of the vacancy. Councilmember Myszkowski moved and Councilmember Graves seconded to ratify the Mayoral appointment of Susan Tade, 7111 Palmer Lake Circle, to the Planning Commission with a term to expire December 31, 2016. Motion passed unanimously. 11. COUNCIL REPORT Councilmember Ryan reported on his attendance at the following and provided information on the following upcoming events: • July 15, 2015: Belivue Park Neighborhood Meeting • July 17, 2015: Metro Cities Housing Policy Committee Meeting • July 20, 2015: City Council Work Session with Financial Commission • July 21, 2015: Brooklyn Youth Council Strategic Planning Session • July 25, 2015: 40 th Anniversary Celebration for the Settlement of Laos/Hmong Refugees Councilmember Myszkowski reported on her attendance at the following and provided information on the following upcoming events: • July 15, 2015: Missed the Bellvue Park Neighborhood Meeting • July 20, 2015: City Council Work Session with Financial Commission • July 22, 2015: CEAP Board Meeting • July 25, 2015: Active Living Street Demonstration in the Bellevue Neighborhood Councilmember Lawrence-Anderson reported on her attendance at the following and provided information on the following upcoming events: • July 15, 2015: Bellvue Park Neighborhood Meeting • July 20, 2015: Missed the City Council Work Session with Financial Commission with Mayoral Approval 07/27/15 -14- DRAFT • July 22, 2015: Odyssey Academy Board Meeting Councilmember Graves reported on her attendance at the following and provided information on the following upcoming events: • July 15, 2015: Belivue Park Neighborhood Meeting • July 20, 2015: City Council Work Session with Financial Commission • July 22, 2015: Brooklyn Youth Council Strategic Planning Session (second day) Mayor Willson reported on his attendance at the following and provided information on the following upcoming events: • July 15, 2015: Bellevue Park Neighborhood Meeting • July 18, 2015: Met with Voinj ama Multilateral High School Alun -mi representatives • July 20, 2015: City Council Work Session with Financial Commission • July 22, 2015: Northwest Minneapolis Visitors Bureau meeting during the day and then an evening flight to Washington D.C. for the Building One America summit on July 23 and 24, 2015 • August 1, 2015: Voinjama Multilateral High School Alumni Association Event at Maple Grove Community Center 12. ADJOURNMENT Councilmember Lawrence-Anderson moved and Councilmember Myszkowski seconded adjournment of the City Council meeting at 9:06 p.m. Motion passed unanimously. 07/27/15 -15- DRAFT City Council Agenda Item No. 6b [[S1BJ[iJ I fl aWA U I DJ'A 0) iI A1 DATE: August 4, 2015 TO: Curt Boganey, City Manager FROM: Maria Rosenbaum, Deputy City Cle \ SUBJECT: Licenses for City Council Approval Recommendation: It is recommended that the City Council consider approval of the following licenses on August 10, 2015. 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. MECHANICAL Appliance Connections Inc. Mike's Custom Mechanical, Inc. Practical Systems MOTOR VEHICLE DEALERSHIP BCV Motors, LLC dba Luther Brookdale Volkswagen RENTAL See attached report. SIGN HANGERS LICENSE Install This Awning & Sign Rose City Sign Co. 12850 Chestnut Boulevard, Shakopee P.O. Box 171, Champlin 4342 B Shady Oak Road, Hopkins 6801 Brooklyn Blvd. 4835 Lyndale Avenue N, Minneapolis 31208 County 71, Eagle Bend Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust E$]JJJ I R U V k' U I ak (I) 1I t1IJ I Rental License Category Criteria Policy - Adopted by City Council 03-08-10 Property Code and Nuisance Violations Criteria License Category (Based on Property Number of Units Code Only) Property Code Violations per Inspected Unit Type 1 - 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 License Category Number of Units Validated Calls for Disorderly Conduct Service & Part I Crimes (Calls Per Unit/Year) No Category 1-2 0-1 Impact 3-4 units 0-0.25 5 or more units 0-0.3 5 Decrease 1 1-2 Greater than 1 but not more than 3 Category 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 1-2 Greater than 3 Categories 3-4 units Greater than 1 5 or more units Greater than 0.50 Budget Issues: There are no budget issues to consider. 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CD-I CDCM CD lC--<CD C.)IC P-0 ---C0 S ui a)CD C g .- M-0==--==== = ===--===C',CD (.11 C.)o C)Fa C)0 C)C)I-i 0 0 C)C)C)Q )..* 2 SRIH_n-<. 1 ==- -=====-==5_D CDCD -*C,' *CD 13 CD CD ==E—====—=E == *CD C City Council Agenda Item No. 6c [II1IJ[i1 I fl I I MA Uh'A I k'AO) 1IflIA'A I DATE: August 5, 2015 TO: Curt Boganey, City Manager THROUGH: Steve Lillehaug, Director of Public Works/City Engineer SUBJECT: Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 2014-13, Twin Lakes Regional Trail (Lake Point Segment) Recommendation: It is recommended that the City Council consider approval of the lowest responsible bid and award a contract to Barber Construction, Inc., for Improvement Project No. 2014-13, Twin Lakes Regional Trail (Lake Point Segment). Background: Bids for the 2014 Capital Building Maintenance Project, Project No. 2014-13, contract were received and opened on July 30, 2015. The bidding results are tabulated below: Total Base Bid + Bidder Bid Alternate No. 1* Barber Construction, Inc. $159,975.00 US Sitework $205,914.50 Midwest Asphalt Corporation $225,057.50 Max Steininger, Inc. $239,668.17 Bituminous Roadways, Inc. $285,610.00 *Bid Alternate 1 is being recommended that includes a galvanized chain link fence in lieu of a black-coated vinyl chain link fence at a cost savings of $8,040.00. Of the five (5) bids received, the lowest base bid plus bid alternate No. 1 is $159,975.00 and was submitted by Barber Construction, Inc. of St. Bonifacius, Minnesota. They have the experience, equipment and capacity to qualify as the lowest responsible bidder for the project. It should also be noted that the City is currently negotiating with the property owner of Lake Point Apartments to obtain the necessary property rights to construct this trail and that the award of bid should be contingent upon obtaining these property rights (e.g. construction easement). Budget Issues: The bid amount of $159,975.00 was higher than the estimated construction amount of $141,240.00. The total project funding amount that is being provided solely by the Three Rivers Park District in a not to exceed amount is $185,000. The total project amount adjusted with the low bid amount plus contingencies, administration, engineering and legal is estimated to be approximately $198,225.00, exceeding the budget amount. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people andpreserves the public trust [i1J1SJ[ii I N I M"A UYA I D1'A (I] 1.'II I1BJ'A I In order to not exceed the available budget, 25 trees that were included in the original bid are recommended to be removed from contract work items, which reduces the overall contract amount by $13,275 to a total contract amount of $146,700.00. This reduction will maintain the total original project budget of $185,000.00. Trees could be provided at a later date by the City through donation of trees as part of the City's reconstruction project and also could be supplemented in the future through our reforestation program. The attached resolution is recommended that includes the award of the base bid items (less trees) with bid alternate No. 1 (see attached Resolution - Costs and Revenues tables). Strategic Priorities: Key Infrastructure Investments Mission: Ensuring on 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 ACCEPTING BID AND AWARDING A CONTRACT, IMPROVEMENT PROTECT NO. 2014-13, TWIN LAKE REGIONAL TRAIL (LAKE POINT SEGMENT) WHEREAS, pursuant to an advertisement for bids for Improvement Project No. 2014-13, bids were received, opened, and tabulated by the City Engineer and Clerk on the 3O' day of July, 2015. Said bids were as follows: Bidder Barber Construction, Inc. US Sitework Midwest Asphalt Corporation Max Steininger, Inc. Bituminous Roadways, Inc. Total Base Bid + Bid Alternate No. I * $159,975.00 $205,914.50 $225,057.50 $239,668.17 $285,610.00 WHEREAS, the City Engineer recommends that the contract be awarded based on the base bid including bid alternate No. 1 less $13,275 worth of eliminated tree bid items for a combined total contract amount of $146,700.00. WHEREAS, 'it appears that Barber Construction, Inc. of St. Bonifacius, Minnesota is the lowest responsible bidder. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that The Mayor and City Manager are hereby authorized and directed to enter into a contract with Barber Construction, Inc. of St. Bonifacius, Minnesota in the name of the City of Brooklyn Center, for Improvement Project No. 2014-13, according to the plans and specifications therefore approved by the City Council and on file in the office of the City Engineer. 2. Execution of the contract shall be contingent upon obtaining property rights to construct the proposed trail. RESOLUTION NO. 3. The project costs and revenues are as follows: COSTS Estimated Construction Contract $141,240.00 Contingency $ 5,510.00 AdminlLegal/Engr. $ 38,250.00 Total Estimated Project Cost $185,000.00 Amended per Low Bid $146,700.00 $ -0- $ 38,300.00 $185,000.00 Amended REVENUES Estimated per Low Bid Three Rivers Park District $185,000.00 $185,000.00 Total Estimated Revenue $185,000.00 $185,000.00 August 10, 2015 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: August 10, 2015 TO: Curt Boganey, City Manager FROM: Vickie Schleuning, Asistant City Manager/Director of Building & Community Standards SUBJECT: Resolution Calling for a Public Hearing on Proposed Special Assessments for Delinquent Nuisance Abatement Costs, Delinquent Administrative Fines/Citations, and Delinquent Administrative Vacant Building Registrations Recommendation: It is recommended that the City Council consider approval/adoption of the resolution ordering a Public Hearing for Monday, September 14, 2015 at 7 p.m. or as soon thereafter as the matter may be heard, to hear and pass upon any objections to the proposed special assessments for delinquent nuisance abatement accounts, delinquent administrative fines/citations, and delinquent administrative vacant building registrations, generally for the period July 1, 2014 up to June 30, 2015. Background: The attached resolution calls for a Public Hearing to receive public testimony and comments regarding the proposed special assessments for delinquent nuisance abatement accounts, delinquent administrative fines/citations, and delinquent administrative vacant building registrations. The special assessment amounts are specified in the attached preliminary assessment rolls and are summarized as follows; Delinquent nuisance abatement account property owners have received notice of delinquent accounts in accordance with the established collection policy and have not made payments. o Delinquent administrative fines/citations have been issued to property owners in accordance to established policy and have not been paid. o Owners of properties that have been administratively registered as vacant have received notice of delinquent accounts in accordance with the established collection policy and have not made payments. At the scheduled Public Hearing, the City Council would consider adoption of the resolution to certify the special assessment levy rolls with Hennepin County. The 2015 interest rate for special assessments is four percent, as previously established by the Council. A copy of the special assessment pending levy roll is attached. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust [i1i1IJ[SJ I R N N MhYA UhYA I k'A (I] UI WJ I Budget Issues: The proposed levy roll for delinquent nuisance abatement costs totals $620.00. The proposed levy roll for delinquent administrative fines/citations costs totals $133,927.50. The proposed levy roll for delinquent administrative vacant building registrations is $5,040.00. New proposed level rolls will be provided at the Public Hearing to reflect any payments made. Strategic Priorities: Enhanced Community Image Attachments: Resolution Notice of Public Hearing Special Assessment Certified Role Mission: Ensuring an attractive, clean, safe, inclusive conununity that enhances the quality of life for al/people and preserves the public trust Member introduced the following resolution and moves its adoption: RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS FOR DELINQUENT NUISANCE ABATEMENT COSTS, DELINQUENT ADMINISTRATIVE FINES/CITATIONS, AND DELINQUENT ADMINISTRATIVE VACANT BUILDING REGISTRATIONS WHEREAS, the City performs and incurs costs for certain neighborhood maintenance services to protect public health, safety and welfare; and WHEREAS, Minnesota Statutes Chapter 429, provides for a public hearing process to recover the costs through special assessments; and WHEREAS, the City has performed neighborhood maintenance services, billed the property owners, and has not been reimbursed by certain property owners. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that: 1.A hearing shall be held on the 14th day of September, 2015, in City Hall at 7 p.m. or as soon thereafter as the matter may be heard, to pass upon the proposed assessments for the following charges: • Delinquent Nuisance Abatement Costs • Delinquent Administrative Fines/Citations • Delinquent Administrative Vacant Building Registration 2.The City Clerk with the assistance of the Director of Building and Community Standards shall forthwith prepare assessment rolls for the above charges, and shall keep them on file and open to inspection by any interested persons. 3.The City Clerk is directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing. 4.The City Clerk shall cause mailed notice to be given to the owner of each parcel described in such assessment rolls not less than two weeks prior to the hearing. BE IT FURTHER RESOLVED BY THE City Council of the City of Brooklyn Center that this resolution shall be effective immediately. August 10, 2015 Date Mayor RESOLUTION NO. 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 OF BROOKLYN CENTER NOTICE OF PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS Notice is hereby given that the City Council of the City of Brooklyn Center, Minnesota, will meet in the Council Chambers of Brooklyn Center City Hall at 6301 Shingle Creek Parkway, on Monday, September 14, 2015 at 7 p.m. or as soon thereafter as the matter may be heard, to hear and pass upon any objections to the proposed assessments for the following: DELINQUENT PUBLIC UTILITY ACCOUNTS Special Assessments are proposed for public utility charges to those tracts or parcels where such charges were delinquent as of June 30, 2015, and, after due notice to the property owner, remain unpaid, pursuant to City Ordinances, Section 4-105 and Section 4-201. DELINQUENT NUISANCE ABATEMENT ACCOUNTS It is proposed to assess the costs of delinquent abatement costs to those tracts or parcels where, pursuant to City Ordinance Section 12-1101, 12-1206, 12-1504 and in accordance with MS 429 and 463.251, abatement procedures were performed by order of City Inspectors and the cost for such abatement remains unpaid. DELINQUENT ADMINISTRATIVE FINES/CITATIONS It is proposed to assess the costs of delinquent administrative fines/citations to those tracts or parcels where, pursuant to City Ordinance Section 18-204, 18-210 and in accordance with MS 429, delinquent administrative fines/citations were issued and the cost for such fines remains unpaid. DELINQUENT ADMINISTRATIVE VACANT BUILDING REGISTRATIONS It is proposed to assess the cost of administratively registering vacant buildings to those tracts or parcels where, pursuant to City Ordinance Section 12-1504 and in accordance with MS 429, administrative vacant building registration procedures were performed by order of the City Inspectors and the cost for such registration remains unpaid. PROCEDURAL INFORMATION FOR OBJECTIONS TO SPECIAL ASSESSMENTS An owner may appeal an assessment to district court pursuant to Minnesota Statutes, Section 429.081 by serving notice of the appeal upon the Mayor or City Clerk within 30 days after the adoption of the assessment and filing such notice with the district court within ten days after service upon the Mayor or City Clerk. No such appeal as to the amount of an assessment for a specific parcel of land may be made unless the owner has filed a written objection to that objection to that assessment, signed by the affected property owner, with the City Clerk prior to the hearing or has presented such a written objection to the presiding officer at the hearing. These assessments are now on file at City Hall and open to public inspection. Written or oral objections to the proposed assessments will be considered at this meeting, but the City Council may consider any objection to the amount of a proposed individual assessment at an adjourned meeting upon such further notice to the affected property owners as it deems advisable. AUXILIARY AIDS AVAILABLE UPON REQUEST Auxiliary aids for persons with disabilities are available upon request at least 96 hours (4 days) in advance of the hearing. Please contact the City Clerk at 763569-3300 to make arrangements. Sharon Knutson, City Clerk By order of the City Council Published in the Brooklyn Center Post on August 20, 2015. Amended Special Assessment Certified Roll (Abatement) July 1, 2015 to June 30, 2015 Abatement Printed July 28, 2015 Municipal Code No. 22 Levy Runs One Year Capital Special Total Pending Interest Assessment Amount Levy No. Property Address Property ID Amount Charge Charge Certified 19066 2348 BrookvjewDr 02-118-21-31-0047 265.00 10.00 30.00 305.00 19066 6842 Regent Ave N 33-119-21-11-0088 275.00 10.00 30.00 315.00 Total: 620.00 City of Brooklyn Center -6301 shingle Creek Parkway - Brooklyn Center MN 55430 Page 1 of I Amended Special Assessment Certified Roll (Admin Fines/Citations) July 1, 2014 to June 30, 2015 Administrative Penalty/Citation Printed July 28, 2015 Municipal Code No. 22 Levy Runs One Year Capital Special Total Pending Interest Assessment Amount Levy No.PropertyAddress Property ID Amount Ch ar ge Charge Certified 19068 5930 Camden Ave N 01-118-21-12-0022 1,750.00 10.00 30.00 1,790.00 19068 5700 Camden AveN 01-118-21-13-0045 3,325.00 10.00 30.00 3,365.00 19068 6043 Colfax Ave N 01-118-21-21-0010 125.00 10.00 30.00 165.00 19068 6042 Dupont Ave N 01-118-21-21-0046 1,875.00 10.00 30.00 1,915.00 19068 6015 Aldrich AveN 01-118-21-21-0082 1,025.00 10.00 30.00 1,065.00 19068 S906 Fremont Ave N 01-118-21-22-0025 125.00 10.00 30.00 165.00 19068 6007 Girard Ave N 01-118-21-22-0083 125,00 10.00 30.00 165.00 19068 5914 Fremont Ave N 01-118-21-22-0093 5,500.00 10.00 30.00 5,540.00 19068 5743 Emerson Ave N 01-118-21-23-0029 60.00 10.00 30.00 100.00 19068 5817 Colfax Ave N 01-118-21-24-0022 1,750.00 10.00 30.00 1,790.00 19068 816 57th Ave N 01-118-21-24-0066 4,500.00 10.00 30.00 4,540.00 19068 5607 Colfax Ave N 01-118-21-31-0028 375.00 10.00 30.00 415.00 19068 5631 Aldrich Ave N 01-118-21-31-0086 125.00 10.00 30.00 165.00 19068 1300 55th Ave N 01-118-21-32-0030 125,00 10.00 30.00 165.00 19068 5651 Girard Ave N 01-118-21-32-0046 125.00 10.00 30.00 165.00 19068 S65O Fremont Ave N 01-118-21-32-0118 625.00 10.00 30.00 .665.00 19068 5330 Girard Ave N 01-118-21-33-0012 125.00 10.00 30,00 165.00 19068 5455 Fremont Ave N 01-118-21-33-0033 125.00 10,00 30.00 165.00 19068 5307 Emerson Ave N 01-118-21-33-0121 425.00 10.00 30,00 465.00 19068 5424 Fremont Ave N 01-118-21-33-0169 125.00 10.00 30,00 165.00 19068 5439 Camden Ave N 01-118-21-34-0005 125.00 10.00 30.00 165.00 19068 5331 Camden Ave N 01-118-21-34-0011 3,000.00 10.00 30.00 3,040.00, 19068 5614 Camden Ave N 01-118-21-42-0032 375.00 10.00 30.00 415.00 19068 5441 4th StN 01-118-21-43-0091 125.00 10,00 30.00 165.00 19068 5800 Logan Ave N 02-118-21-14-0025 975.00 10.00 30,00 1,015.00 19068 5736 James Ave N 02-118-21-14-0063 125.00 10.00 30.00 165.00 19068 5713 Humboldt Ave N 02-118-21-14-0071 3,875.00 10.00 30.00 3,915.00 19068 5755 Humboldt Ave N 02-118-21-14-0089 125.00 10.00 30.00 165.00 19068 5605 Humboldt Ave N 02-118-21-41-0006 500.00 10.00 30.00 540.00 19068 5533 Irving Ave N 02-118-21-41-0030 2,000.00 10.00 30.00 2,040.00 19068 5603 James AveN 02-118-21-41-0059 375.00 10.00 30.00 415.00 19068 5540 Knox Ave N 02-118-21-41-0113 300,00 10.00 30,00 340.00 19068 56l7 Logan Ave N 02-118-21-42-0006 300.00 10.00 30.00 340.00 19068 2018 55th Ave N 02-118-21-43-0075 125.00 10.00 30.00 165.00 19068 S4l2 Penn Ave N 02-118-21-43-0130 125.00 10.00 30.00 165.00 19068 5350 Logan Ave N 02-118-21-44-0009 125.00 10.00 30.00 165.00 19068 5436 Logan Ave N 02-118-21-44-0030 1,000.00 10.00 30.00 1,040.00 19068 5351 Irving AveN 02-118-21-44-0104 375.00 10.00 30.00 415.00 19068 6013 Zenith Ave N 03-118-21-11-0026 125.00 10.00 30.00 165.00 19068 5937 Abbott Ave N 03-118-21-11-0060 14,225.00 10.00 30.00 14,265.00 19068 58O6 Drew Ave N 03-118-21-13-0020 3,000,00 10.00 30.00 3,040.00 19068 3220 Co Rd No 10 03-118-21-14-0034 230.00 10.00 30.00 270.00 19068 5931 Halifax P1 03-118-21-21-0058 250.00 10.00 30.00 290.00 19068 3818 6lst Ave N 03-118-21-21-0105 125.00 10.00 30.00 165.00 City of Brooklyn Center .6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Pagel of 3 Amended Special Assessment Certified Roll (Admin Fines/Citations) July 1, 2014 to June 30, 2015 Administrative Penalty/Citation Printed July 28, 2015 Municipal Code No. 22 Levy Runs One Year Capital Special Total Pending Interest Assessment Amount Levy No.Property Address Property ID Amount Charge Charge Certified 19068 4000 6lst Ave N 03-118-21-21-0111 250.00 10.00 30.00 290.00 19068 5813 June AveN 03-118-21-23-0017 125.00 10.00 30.00 165.00 19068 5601 Halifax Ave N 03-118-21-31-0003 300.00 10.00 30.00 340.00 19068 3901 BurquestLa 03-118-21-31-0041 7,025.00 10.00 30.00 7,065.00 19068 52O9 Xerxes Ave N 10-118-21-11-0016 125.00 10.00 30.00 165.00 19068 5247 DrewAveN 10-118-21-12-0012 675.00 10.00 30.00 715.00 19068 5221 Drew Ave N 10-118-21-12-0017 375.00 10.00 30.00 415.00 19068 5228 Ewing Ave N 10-118-21-12-0025 300.00 10.00 30.00 340.00 19068 5240 Ewing Ave N 10-118-21-12-0026 375.00 10,00 30.00 415.00 19068 5l52 Ewing Ave N 10-118-21-12-0046 125.00 10.00 30.00 165.00 19068 5113 Ewing Ave N 10-118-21-12-0075 125.00 10.00 30.00 165.00 19068 5250 Great View Ave 10-118-21-21-0021 375.00 10.00 30.00 415.00 19068 4100 Lakeside Ave 10-118-21-32-0002 125,00 10.00 30.00 165.00 19068 4207 Lakeside Ave 00336 10-118-21-32-0189 125,00 10,00 30,00 165.00 19068 3401 47th Ave N 10-118-21-42-0038 375.00 10.00 30.00 415.00 19068 7101 Girard Ave N 25-119-21-32-0040 125.00 10.00 30.00 165.00 19068 1106 Emerson La 25-119-21-33-0014 425.00 10,00 30.00 465.00 19068 llO7 Emerson La 25-119-21-33-0085 375.00 10.00 30.00 415.00 19068 7237 Willow La 25-119-21-41-0039 2,000.00 10.00 30.00 2,040.00 19068 7236 Riverdale Rd 25-119-21-41-0050 5,500.00 10.00 30.00 5,540.00 19068 7111 Riverdale Rd 25-119-21-41-0060 125.00 10.00 30.00 165.00 19068 1711 73rd Ave N 26-119-21-410107 8,000.00 10.00 30.00 8,040.00 19068 6901 Morgan Ave N 26-119-21-43-0018 2,100.00 10.00 30.00 2,140.00 19068 7001 Logan AveN 26-119-21-43-0046 125.00 10.00 30.00 165.00 19068 1801 7Oth Ave N 26-119-21-44-0024 750.00 10.00 30.00 790.00 19068 7000 James Ave N 26-119-21-44-0032 125,00 10.00 30.00 165.00 19068 7018 Irving AveN 26-119-21-44-0056 125,00 10.00 30.00 165.00 19068 1510 69th Ave N 26-119-21-44-0068 550,00 10.00 30.00 590.00 19068 7124 Indiana Ave N 27-119-21-31-0094 300.00 10.00 30,00 340.00 19068 7112 June Ave N 27-119-21-32-0103 250.00 10.00 30.00 290.00 19068 7018 Brooklyn Blvd 27-119-21-33-0005 425.00 10.00 30.00 465.00 19068 7O46 Brooklyn Blvd 27-119-21-33-0086 375.00 10.00 30,00 415.00 19068 3713 Woodbine La 27-119-21-42-0057 125,00 10.00 30.00 165.00 19068 3707 72nd Ave N 27-119-21-42-0089 1,500,00 10,00 30.00 1,540,00 19068 6910 France Ave N 27-119-21-43-0062 900.00 10.00 30.00 940.00 19068 6943 Palmer Lake Dr 27-119-21-43-0093 375.00 10.00 30.00 415.00 19068 7O67 Perry Ave N 28-119-21-41-0133 875.00 10.00 30.00 915,00 19068 7l69 Unity Ave N 28-119-21-42-0092 675.00 10.00 30.00 715.00 19068 69O7 Regent Ave N 28-119-21-43-0006 125.00 10.00 30.00 165.00 19068 5200 7Oth Ave N 28-119-21-43-0035 60.00 10.00 30.00 100.00 19068 7033 Unity Ave N 28-119-21-43-0118 2,900.00 10.00 30.00 2,940.00 19068 7081 Unity Ave N 28-119-21-43-0142 1,200.00 10.00 30.00 1,240,00 19068 7030 Regent Ave N 28-119-21-44-0057 300.00 10.00 30,00 340.00 19068 5109 69th Ave N 33-119-21-12-0001 125.00 10,00 30.00 165.00 City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 2 of 3 Amended Special Assessment Certified Roll (Admin Fines/Citations) July 1, 2014 to June 30, 2015 Administrative Penalty/Citation Printed July 28, 2015 Municipal Code No. 22 Levy Runs One Year Capital Special Total Pending Interest Assessment Amount Levy No.Propej-tvAddress Property ID Amount Cha r lie Charge Certified 19068 5413 6 8th Ave N 33-119-21-12-0031 125.00 10.00 30.00 165.00 19068 6807 Scott Ave N 33-119-21-12-0071 300.00 10.00 30.00 340.00 19068 67l2 Beard Ave N 34-119-21-11-0109 125.00 10.00 30.00 165.00 19068 3701 69th Ave N 34-119-21-12-0041 1,275.00 10.00 30.00 1,315.00 19068 6830 Ewing Ave N 34-119-21-12-0053 125.00 10.00 30.00 165.00 19068 3501 66th Ave N 34-119-21-13-0044 425.00 10.00 30.00 465.00 19068 3025 Quarles Rd 34-119-21-14-0084 6,125.00 10.00 30.00 6,165.00 19068 6714 Grimes AveN 34-119-21-21-0017 250.00 10.00 30.00 290.00 19068 6740 Grimes P1 34-119-21-21-0026 425.00 10.00 30.00 465.00 19068 6406 Indiana AveN 34-119-21-31-0074 300.00 10.00 30.00 340.00 19068 4013 65th Ave N 34-119-21-31-0085 2,775.00 10.00 30:00 2,815.00 19068 6400 Noble Ave N 34-119-21-32-0026 125.00 10.00 30.00 165.00 19068 4309 63rd Ave N 34-119-21-33-0022 600.00 10.00 30.00 640.00 19068 4218 61stAveN 34-119-21-34-0040 125.00 10.00 30.00 165.00 19068 4206 62nd Ave N 34-119-21-34-0043 875.00 10.00 30.00 915.00 19068 3206 Mumford Rd 34-119-21-44-0025 125.00 10.00 30.00 165.00 19068 3201 Mumford Rd 34-119-21-44-0050 55.00 10.00 30.00 95.00 19068 3224 62nd Ave N 34-119-21-44-0062 125.00 10.00-30.00 165.00 19068 3218 62nd Ave N 34-119-21-44-0063 625.00 10.00 30.00 665.00 19068 6753 Humboldt Ave N 35-119-21-11-0017 6,550.00 10,00 30.00 6,590.00 19068 6765 Humboldt Ave N 35-119-21-11-0022 1,225.00 10.00 30.00 1,265.00 19068 1601 67thLnN 35-119-21-11-0056 1,625.00 10,00 30.00 1,665.00 19068 2923 68thLnN 35-119-21-22-0039 300.00 10.00 30.00 340.00 19068 2841 67thLnN 35-119-21-23-0034 125.00 10.00 30.00 165.00 19068 2801 63rd Ave N 35-119-21-33-0019 1,875.00 10.00 30.00 1,915.00 19068 6223 Brooklyn Dr 35-119-21-33-0052 4,250.00 10.00 30.00 4,290.00 19068 5O769th Ave N 36-119-21-12-0037 125.00 10.00 30.00 165.00 19068 6601 Camden Dr 36-119-21-13-0105 125.00 10.00 30.00 165.00 19068 6811 Bryant Ave N 36-119-21-21-0030 750.00 10.00 30.00 790.00 19068 6737 Camden Ave N 36-119-21-21-0103 125.00 10.00 30.00 165.00 19068 1320 68thLnN 36-119-21-22-0060 362.50 10.00 30.00 402.50 19068 1309 68thLnN 36-119-21-22-0063 125.00 10.00 30.00 165.00 19068 6330 Colfax Ave N 36-119-21-31-0017 125.00 10.00 30,00 165.00 19068 6337 Bryant Ave N 36-119-21-31-0042 125.00 10.00 30.00 165.00 19068 1207 65th Ave N 36-119-21-32-0090 125.00 10.00 30.00 165.00 19068 6220 Bryant Ave N 36-119-21-34-0081 250.00 10,00 30.00 290.00 Total:133,927.50 City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 3 of 3 Amended Special Assessment Certified Roll (Administrative Vacant Building Registration) July 1,2014 to June 30, 2015 Administrative Vacant Building Registration Printed July 28, 2015 Municipal Code No. 22 Levy Runs One Year Capital Special Total Pending Interest Assessment Amount Levy No.Property Address FropertvlD Amount Charge Charge Certified 19067 5329 Irving Ave N 02-118-21-44-0049 1,000.00 10.00 30.00 1,040.00 19067 7242Newton Ave N 26-119-21-42-0068 400.00 10.00 30.00 440.00 19067 6907 Regent Ave N 28-119-21-43-0006 1,000.00 10.00 30.00 1,040.00 19067 5107 Eleanor La 33-119-21-42-0006 1,000.00 10.00 30.00 1,040.00 19067 4212 66th Ave N 34-119-21-24-0028 400.00 10.00 30.00 440.00 19067 6737 Camden AveN 36-119-21-21-0103 1,000.00 10.00 30.00 1,040.00 Total:5,040.00 City of Brooklyn Center - 6301 Shingle Creek Parkway -Brooklyn Center MN 55430 - Page 1 of I City Council Agenda Item No. 6e xaJrrs I riimiiirs V irii nri ii IIi City Council Agenda Item No. 6e kI]Ji[ 10 1 I Dk"A I I IhYA (Si 1aI flIJ I DATE: August 10, 2015 TO: Curt Boganey, City Manager FROM: Nathan Reinhardt, Finance Director SUBJECT: Resolution calling for a Public Hearing on Proposed Special Assessments for Delinquent Public Utility Service Accounts Recommendation: It is recommended that the City Council consider adoption of a resolution calling a public hearing for Monday, September 14, 2015 on the matter of unpaid public utility service accounts. Background: One of the City's methods for collecting unpaid utilities is to assess them to the property served by the utility. Under Minnesota Statutes (M.S. 444.075, Subd. 3f) municipalities are allowed to certify unpaid utilities to the property taxes for the parcel served by the utility. City Code Section 4-105 confirms the City's expectation that this method of collection will be used for delinquent, unpaid utility charges. For the Fall Assessment of 2015, accounts included in the preliminary assessment roll attached to this memorandum include those delinquent and unpaid as of June 30, 2015. This list is sorted and presented by the address number of the customer. This year there are 768 accounts totaling $438,568.56 in unpaid utility charges and penalties. This compares with 795 accounts totaling $441,122, at this point of the year, in 2014. With the adoption of this resolution, a letter will be sent to each of these accounts informing them of the amount due on their account, the potential assessment of the amount to their property taxes, and informing them of the Public Hearing location, date and time. Following the Public Hearing on September 14, 2015 the Council will be asked to consider a resolution certifying overdue, unpaid accounts for assessment against 2016 property taxes. Budget Issues: There are no exceptional budget issues. These amounts were previously owed. Strategic Priorities: . 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Background: One of the City's methods for collecting unpaid utilities is to assess them to the property served by the utility. Under Minnesota Statutes (M.S. 444.075, Subd. 3f) municipalities are allowed to certify unpaid utilities to the property taxes for the parcel served by the utility. City Code Section 4-105 confirms the City's expectation that this method of collection will be used for delinquent, unpaid utility charges. For the Fall Assessment of 2015, accounts included in the preliminary assessment roll attached to this memorandum include those delinquent and unpaid as of June 30, 2015. This list is sorted and presented by the address number of the customer. This year there are 800 accounts totaling $450,216.89 in unpaid utility charges and penalties. This compares with 795 accounts totaling $441,122, at this point of the year, in 2014. With the adoption of this resolution, a letter will be sent to each of these accounts informing them of the amount due on their account, the potential assessment of the amount to their property taxes, and informing them of the Public Hearing location, date and time. Following the Public Hearing on September 14, 2015 the Council will be asked to consider a resolution certifying overdue, unpaid accounts for assessment against 2016 property taxes. Budget Issues: There are no exceptional budget issues. These amounts were previously owed. Strategic Priorities: . Resident Economic Stability Mission: Ensuring an attractive, clean, safe coinniunity that enhances the quality of life and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION CALLLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS FOR DELINQUENT PUBLIC UTILITY SERVICE ACCOUNTS BE IT RESOLVED by the City Council of the City of Brooldyn Center that: 1.A hearing shall be held on the 14th day of September, 2015, in City Hall at 7:00 PM or as soon thereafter as the matter may be heard, to pass upon the proposed assessments for Delinquent Public Utility Service Accounts. 2.The City Clerk, with the assistance of the Finance Director, shall forthwith prepare assessment rolls for the above charges and shall keep them on file and open to inspection by any interested persons. 3.The City Clerk is directed to cause a notice of the Public Hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing. 4.The City Clerk shall cause mailed notice to be given to the owner of each parcel described in such assessment rolls not less than two weeks prior to the hearing. 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. 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Background: In accordance with City Council policy please find attached a resolution recognizing Police Chief Kevin Benner for his 26 years of dedicated service. Chief Benner began his career with the City of Brooklyn Center Police department on January 18th 1989. Over the years has had excelled in the positions of Patrol Officer, Detective, Sergeant, Lieutenant, Commander and Chief of Police. In my opinion, Chief Benner will always be known for his leadership, professionalism, effectiveness, integrity and interest in successful outcomes for the youth of Brooklyn Center. His positive impact will be felt for many years to come. Budget Issues: There are no budget issues to consider. Strategic Priorities: Alissio;z: Ensuri, (1/i (Ittlilcine, clean,se/c, inclusie community that enhances the qualliv of 4/a for allpeople and present's the puhlc trust Member introduced the following resolution and moved its adoption: RESOLUTION NO RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF POLICE CHIEF KEVIN J. BENNER WHEREAS, Chief Kevin J. Benner was hired as a Police Officer by the City of Brooklyn Center on January 9, 1989; and WHEREAS, Chief Kevin J. Benner has served many roles at the Brooklyn Center Police Department throughout his career, including but not limited to Detective, Sergeant, Lieutenant, and Commander; and WHEREAS, Chief Kevin J. Benner was promoted to Chief Law Enforcement Officer by the City of Brooklyn Center on July 22, 2010; and WHEREAS, Chief Kevin J. Benner has represented the Brooklyn Center Police Department as an active member of Project PEACE domestic advocacy service and has served as Chairman of the Board along with playing a vital role with the transition to utilizing Cornerstone domestic advocacy services; and WHEREAS, Chief Kevin J. Benner has represented the Brooklyn Center Police Department as an active member of the Cornerstone Board of Directors, representing the cities involved with the Project PEACE Joint Powers Agreement as a whole including Brooklyn Center, Crystal, Robbinsdale, and Maple Grove; and WHEREAS, Chief Kevin J. Benner has represented the Brooklyn Center Police Department as an active member of the Hennepin County Chiefs of Police Association, Minnesota Chiefs of Police Association, and International Association of Chiefs of Police; and WHEREAS, Chief Kevin J. Benner has represented the Brooklyn Center Police Department as an active member of the Hennepin County Juvenile Detention Alternatives Initiative, which produces positive outcomes for youth, facilities, and communities while protecting public safety; and WHEREAS, Chief Kevin J. Benner has played a vital role in the growth and success of the Joint Community Police Partnership ("JCPP"), serving as the Chairman of the JCPP Executive Committee, which has contributed to building community trust and communication between police and community members, improving on the safety and livability of our community; and WHEREAS, Chief Kevin J. Benner has represented the JCPP and the City of Brooklyn Center in Denmark, meeting with their law enforcement leaders and sharing ideas about building community and police relations within a culturally diverse community; and RESOLUTION No; WHEREAS, Chief Kevin J. Benner has accepted an award from the Vera Institute of Justice on behalf of the City of Brooklyn Center, which recognized Brooklyn Center for efforts put forth with respect to Engaging Police in Immigrant Communities ("EPIC"); and WHEREAS, Chief Kevin J. Benner' s dedicated public service and civic effort for the betterment of the community merit the gratitude of the citizens of Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, upon the recommendation of the City Manager, that we recognize the honorable retirement of Chief Kevin J. Benner on August 1, 2015, and express sincere appreciation for his dedicated public service. We wish Kevin and his family the very best in the future. August 10, 2015 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. 8a COUNCIL ITEM MEMORANDUM DATE: August 5, 2015 TO: City Council FROM: Curt Boganey, City Managed( SUBJECT: CenterPoint Energy Franchise Fee and Agreement Recommendation: It is recommended that the City Council hold a public hearing and following said hearing consider the second reading and adoption of an ordinance continuing franchise fees for CenterPoint Energy, Minnesota Gas. It is further recommended that the City Council consider adoption of an Ordinance approving the new Franchise Agreement with CenterPoint Energy, Minnesota Gas. Background: On February 23" the City Council held a public hearing on the adoption of an ordinance establishing a new Franchise agreement between the City of Brooklyn Center and CenterPoint Energy, Natural Gas Company. This new model ordinance has a term of 20 years and will expire in the year 2035. This Franchise grants CenterPoint Energy the nonexclusive and limited right to use public land and public ways to construct, operate, repair and maintain facilities and equipment for the transportation, distribution and sale of gas energy for public and private use. On July 13th 2015 the City Council adopted an ordinance on first reading that continues the existing franchise fee ordinance with CenterPoint Energy. With the adoption of a new franchise agreement it is necessary that we adopt a new fee ordinance to assure a continuance of franchise fees. The current agreement produces approximately $250,000 annually in fees. Historically these fees have been used by the City to help fund the cost of street reconstruction throughout the City. We anticipate the fees collected in the future will be used for the same purpose. Budget Issues: Failure to adopt the fee ordinance will reduce annual revenue by approximately $250,000. Strategic Priorities: • Key Infrastructure Investments Mission: Ensuring an allrac1ie, cIeoi, sfe, inclusive coininsuifty I/Jul enhances the quality of life for all people tind preserves the public trust CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 10th day of August, 2015, at 7 p.m. or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway, to consider an ordinance continuing the CenterPoint Energy Resources natural gas franchise fee. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please notify the City Clerk at 763-569-3300 to make arrangements. ORDINANCE NO. AN ORDINANCE CONTINUING THE NAURAL GAS FRANCHISE FEES ON THE OPERATIONS OF CENTERPOINT ENERGY RESOURCES CORP IN THE CITY OF BROOKLYN CENTER THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. RECITALS. 1.1. By Ordinance No. 2003-06, adopted on July 14, 2003, the City of Brooklyn Center, Minnesota, approved a franchise for CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources Corporation (the "2003 Franchise Ordinance"). 1.2. Pursuant to the 2003 Franchise Ordinance, the City Council imposed a franchise fee on the operations of the franchise by Ordinance No. 2003-23 adopted on December 8, 2003, which ordinance, including the franchise fees imposed thereby, was amended by Ordinance No. 2009-02, adopted on January 12, 2009 (the "2003 Franchise Fee Ordinance, as amended"). 1.3. The City Council has adopted a new franchise ordinance for CenterPoint Energy Resources Corp (the "Franchisee"), by Ordinance No. 2015-11, adopted on August 10, 2015 (the "2015 Franchise Ordinance"), which, upon becoming effective, will supersede the 2003 Franchise Ordinance. 1.4. The City Council finds that it is reasonable, prudent, and in the interest of the public that the franchise fee imposed by the 2003 Franchise Fee Ordinance, as amended, be continued under the 2015 Franchise Ordinance on the same fee schedule as the 2003 Franchise Fee Ordinance, as amended. 1.5. The Franchisee has consented and agreed to the imposition of the franchise fee provided for herein and waived the dispute resolution process and the right to object to the fee provided for in Section 8 of the 2015 Franchise Ordinance. ORDINANCE NO. Section 2. FRANCHISE FEE. 2.1. Franchise Fee. A franchise fee ("Fee") is hereby imposed on Franchisee, under the 2015 Franchise Ordinance, as set forth in the fee schedule attached hereto and incorporated herein by reference as Exhibit A, upon the effective date of the 2015 Franchise Ordinance and the end of the Franchisee's obligations to collect a franchise fee under the 2003 Franchise Fee Ordinance, as amended, so that the collection of franchise fees will not be interrupted, all as approved by the Minnesota Public Utilities Commission. This fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Franchisee may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise. If the Franchisee combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Franchisee's manner of billing for energy used at all similar premises in the city will control. 2.2. Payment. The Fee shall be payable to the City in. accordance with the terms set forth in the 2015 Franchise Ordinance. 2.3. Surcharge. The City acknowledges that Franchisee may choose to add the full amount of the Fee as a customer surcharge to reimburse the Franchisee for the Fee. Franchisee shall provide to the City a copy of the proposed customer bill line item describing the Fee thirty days before the first bill collecting the Fee is sent to customers. 2.4. Proof of Customer Usage. Franchisee shall make. each payment when due and shall quarterly furnish a complete and correct statement of gross operating revenues for said quarter. Franchisee shall permit the City and its designated representative reasonable access to the Franchisee's records for the purpose of verifying such statements. 2.5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the 2015 Franchise Ordinance. DO ii, "NO J*l. Section 3. EFFECTIVE DATE. This ordinance shall become effective after adoption and upon thirty (30) days following its legal publication. Adopted this ___ day of ,2015. Mayor ATTEST: City Clerk Date of Publication: Effective Date: [SU[IUS[IJ EXHIBIT A CenterPoint Energy Gas Franchise Fee Schedule Class Fee Per Premise Residential $ l.S2 per month Commercial A $ l.58 per month Commercial Industrial B $ 5.l5 per month Commercial C $20.60 per month SVDF A $51.50 per month SVDF B $98.88 per month LVDF $98.88 per month COUNCIL ITEM MEMORANDUM DATE: July &, 2015 TO; City Council FROM Curt Boganey, City Manag SUBJECT: An ordinance continuing the Natural Gas Franchise Fees of CenterPoint energy Recommendation: It is recommended that the City Council considet adoption of the proposed ordinance on first reading and to schedule a public hearing for August 10th 2015 at 7:00 p.m. for final consideration Background: The Franchise Agreement with CenterPoint energy has expired. A new agreement has been negotiated and approved on first reading. On February 231c a hearing was held on the ordinance The Council delayed second reading approval pending the adoption of a new fee ordinance. The attached fee ordinance has also been negotiated by the City Attorney and. it continues the fee ordinance adopted July 23rd 2003. This ordinance is not adjusted at this time but it . does provide an adjustment opportunity subject to review and approval as outlined in the Gas Franchise Ordinance. The City has a franchise agreement with Xcel Energy which sets a cap on annual increases of not more than 3% every three years, The language of the two Franchise Ordinances suggests that ajustments to one franchise fees should be comparable to any udjustmeiits in the other. For this reason we will be proposing by separate ordinance fee adjustment for both. Utility Franchises effective in January 2016, Budget Issues: There are no budget issues to consider at this time. Strategic Priorjties: Key Infrastructure Investments ilh$swiz Luctiwt' an allituin a, than 'aJ, u1Llun . coinrnanhtj dial uilza,zcs tin. qaqYlv of life foi-all people ail (1preserves lit a public trust CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 23rd day of February, 2015, at 7:00 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an ordinance granting a franchise to CenterPoint Energy in the City. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please notify the City Clerk at 763-569-3300 to make arrangements. CenterPoint Energy Gas Franchise Ordinance ORDINANCE NO. AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP; dlb/a CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY"), ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF BROOKLYN CENTER, HENNEPIN COUNTY, MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: City. The City of Brooklyn Center, County of Hennepin, State of Minnesota. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting, or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government that preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Company. CenterPoint Energy Resources Corp, dlb/a CenterPoint Energy Minnesota Gas ("CenterPoint Energy") its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this Franchise. ORDINANCE NO. Gas Energy. Gas Energy includes both retail and wholesale natural, manufactured or mixed gas. Gas Facilities. Gas transmission and necessary equipment and appurtenances owned providing Gas Energy for retail or wholesale use. distribution pipes, lines, ducts, fixtures, and all or operated by the Company for the purpose of Notice. A writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy, Minnesota Division Vice President, 800 LaSalle Avenue, Minneapolis, Minnesota 55402. Notice to the City shall be mailed to City Clerk, 6301 Shingle Creek Parkway, Brooklyn Center, MN. 55340. Any party may change its respective address for the purpose of this Ordinance by written Notice to the other parties. Ordinance. This gas franchise ordinance, also referred to as the Franchise. Public Way. Any highway, street, alley or other public right-of-way within the City. Public Ground. Land owned or otherwise controlled by the City for utility easements, park, trail, walkway, open space or other public property that is held for use in common by the public or for public benefit. SECTION 2. ADOPTION OF FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute and sell Gas Energy for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future and also the right to transport Gas Energy through the limits of the City for use outside of the City limits. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to a public right-of-way ordinance or permit requirements adopted consistent with state law. 2.2 Effective Date; Written Acceptance. This Franchise shall be in force and effect from and after the passage of this Ordinance and publication as required by law and its acceptance by Company. If Company does not file a written acceptance with the City within 60 days after the date the City Council adopts this Ordinance, or otherwise inform the City, at any time, that the Company does not accept this Franchise, the City Council by resolution may either revoke this Franchise or seek its enforcement in a court of competent jurisdiction. 2.3. Service and Gas Rates. The terms and conditions of service and the rates to be charged by Company for Gas Energy in City are subject to the exclusive jurisdiction of the Commission. ORDINANCE NO. 2.4. Publication Expense. Company shall pay the expense of publication of this Ordinance. 2.5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, or if Company invokes this paragraph in a challenge to a proposed franchise fee, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written Notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this Franchise or for such other relief as may be permitted by law or equity. 2.6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this Franchise expires, this Franchise will remain in effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice to the other party of its intention to allow Franchise to expire. However, in no event shall this Franchise continue for more than one year after expiration of the 20-year term set forth in Section 2.1. SECTION 3. LOCATION. OTHER REGULATIONS. 3.1. Location of Facilities. Gas Facilities shall be located, constructed, and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System. Gas Facilities may be located on Public Grounds in a location selected by the City. The location and relocation of Gas Facilities shall be subject to reasonable regulations of the City consistent with authority granted the City to manage its Public Ways and Public Grounds under state law, to the extent not inconsistent with a' specific term of this Franchise. 3.2. Street Openings. Company shall not open or disturb the surface of any Public Way or Public Ground for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee, 'unless the City is receiving a franchise fee pursuant to this Ordinance, in which case all permit fees will be waived. Permit conditions imposed on Company shall not be more burdensome than those imposed on other public-right-of-way users for similar facilities or work. Company may, however, open and disturb the surface of any Public Way or Public Ground without a permit if (i) an emergency exists requiring the immediate repair of Gas Facilities and (ii) Company gives telephone, email or similar Notice to the City before commencement of the emergency repair, if reasonably possible. Within two business days after commencing the repair, Company shall apply for any required permits and pay any required fees. 3.3. Restoration. After undertaking any work requiring the opening of any Public Way or Public Ground, the Company shall restore the Public Ways, in accordance with Minnesota Rules, Part 78 19.1100. Company shall restore the Public Ground to as good a condition as formerly ORDINANCE NO. existed, and shall maintain the surface in good condition for six months thereafter. All work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration of the Public Grounds at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. The Company shall not be required to post a construction performance bond. 3.4. Avoid Damage to Gas Facilities. The Company must take reasonable measures to prevent the Gas Facilities from causing damage to persons or property. The Company must take reasonable measures to protect the Gas Facilities from damage that could be inflicted on the Gas Facilities by persons, property, or the elements. The City will comply with requirements of Minnesota Statutes, Section 216D.05. 3.5. Notice of Improvements to Streets. The City will give Company reasonable written Notice of plans for improvements to Public Ways and Public Grounds where the City has reason to believe that Gas Facilities may affect or be affected by the improvement. The Notice will contain: (i) the nature and character of the improvements, (ii) the Public Ways or Public Grounds upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Way or Public Grounds is involved, the order in which the work is to proceed. The Notice will be given to Company a sufficient length of time, considering seasonal working conditions, in advance of the actual commencement of the work to permit Company to make any additions, alterations or repairs to its Gas Facilities the Company deems necessary. 3.6 Mapping Information. If requested by City, the Company must promptly provide complete and accurate mapping information for any of its Gas Facilities in accordance with the requirements of Minnesota Rules, Parts 7819.4000 and 7819.4100. 3.7. Emergency Response. As emergency first-responders, when a public safety concern exists both the City and the Company shall respond to gas emergencies within the City without additional direct fee or expense to either City or Company. SECTION 4. RELOCATIONS. 4.1. Relocation in Public Ways. The Company and City shall comply with the provisions of Minnesota Rules, Part 7819.3100, with respect to requests for the Company to relocate Gas Facilities located in Public Ways. 4.2. Projects with Federal Funçg. Relocation, removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally aided highway project shall be governed by the provisions of Minnesota Statutes, Sections 161.45 and 161.46. ORDINANCE NO. SECTION 5. INDEMNIFICATION. 5.1. Indemnity of City. Company shall indemnify and hold the City harmless from any and all liability, on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Gas Facilities located in the Public Ways and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence or otherwise wrongful act or omission except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. 5.2. Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written Notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such Notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City. The Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf This Franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. SECTION 6. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks' prior written Notice of a proposed vacation of a Public Way. The City and the Company shall comply with Minnesota Rules, Part 7819.3100 and Minnesota Rules, Part 7819.3200 with respect to any request for vacation. SECTION 7. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 8. FRANCHISE FEE. 8.1. Form. During the term of the franchise hereby granted, the City may charge the Company a franchise fee as approved by the Commission. The Company will administer the collection and payment of franchise fees to City in lieu of permit fees, or other fees that may otherwise be imposed on the Company in relation to its operations as a public utility in the City. The franchise fee will be collected on a flat per meter basis, or by some other method that is mutually acceptable to both City and Company for each retail customer within the corporate limits of the City. The amount of the fee collected may differ for each customer class. The City will use a formula that provides a stable and predictable amount of fees, without placing the Company at a competitive disadvantage. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City. If the Company claims that the City required ORDINANCE NO. fee formula is discriminatory or otherwise places the Company at a competitive disadvantage, the Company will suggest one or more formulas that will produce a substantially similar gross fee amount to the City. If the Company and the City disagree on whether a fee imposed by the City is discriminatoiy or places the Company at a competitive disadvantage, the Company may initiate the dispute resolution provisions of this ordinance. Where Company has timely disputed the franchise fee pursuant to section S .2, the existing franchise fee will remain in effect until the dispute is finally resolved. 8.2. Separate Ordinance. The franchise fee shall be imposed by separate ordinance duly adopted by the City Council. The effective date of the franchise fee ordinance shall be no less than ninety (90) days after written Notice enclosing a copy of the duly adopted and approved ordinance has been served upon the Company by Certified mail. The Company is not required to collect a franchise fee if the fee is inconsistent with this franchise or state law, or is challenged pursuant to section 8.1, provided the Company provides the City Council written notice of its objection to the fee within the ninety (90) day period. 8.3. Condition of Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes a fee of the same or substantially similar amount on the sale of energy within the City by any other energy supplier, provided that, as to such supplier, the City has the authority or contractual right to require a franchise fee or similar fee through an agreed-upon franchise. 8.4. Collection of Fee. The franchise fee shall be payable not less than quarterly during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed from time to time, however, the change shall meet the same Notice and acceptance requirements set forth in sections 8.1 and 8.2, and the fee may not be changed more often than annually. Such fed shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company shall not be responsible to pay City fees that Company is unable to collect under Commission rules or order. The Company agrees to make available for inspection by the City at reasonable times all records necessary to audit the Company's determination of the franchise fee payments. 8.5. Continuation of Franchise Fee. If this franchise expires and the City and the Company are unable to agree upon terms of a new franchise, the franchise fee, if any being imposed by the City at the time this franchise expires, will remain in effect until a new franchise is agreed upon. However, the franchise fee will not remain in effect for more than one year after the franchise expires as stated in Section 2.6 of this Franchise. If for any reason the franchise terminates, the franchise fee will terminate at the same time. SECTION 9. ABANDONED FACILITIES. The Company shall comply with Minnesota Statutes, Section 216D.01 et seq., as it may be amended from time to time, with respect to abandoned facilities located in Public Ways and Public Grounds and with Minnesota Rules, Part 7819.3300, as it may be amended from time to time, with respect to abandoned facilities in Public Ways. The Company shall maintain records ORDINANCE NO. describing the exact location of all abandoned and retired Gas Facilities within the Public Ways and Public Grounds, produce such records at the City's request and comply with the location requirements of Minnesota Statutes, Section 216D.04 with respect to all Gas Facilities located in Public Ways and Public Grounds. SECTION 10. PROVISIONS OF ORDINANCE. 10.1. Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part; and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2. Limitation on Applicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties. No provisions herein shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of this Ordinance or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. AMENDMENT-PROCEDURE. Either party may propose at any time that this Franchise Ordinance be amended. Franchise Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 60 days after the effective date of the amendatory ordinance. If the Company does not consent to the amendment, the ordinance containing the amendment shall be revoked by City. SECTION 12. EFFECTIVE DATE. This ordinance shall be effective after adoption and upon ninety (90) days following its legal publication unless earlier revoked pursuant to Section 2.2 hereof. Adopted this day of 2015. Mayor ATTEST: City Clerk Date of Publication: Effective Date: [ES1IIIJ I I ahYA I ØIV.Y4 0) 1I WJ I DATE: February 5, 2015 TO: City Council FROM: Curt Boganey, City Managei SUBJECT: CenterPoint Energy Gas Franchise Agreement Recommendation: It is recommended that the City Council hold a public hearing to receive public comment regarding the proposed revised Gas Franchise ordinance. Following public comment it is recommended that the City Council direct staff to bring the ordinance back to the Council for consideration at a meeting when a hearing is being held on the new franchise fee ordinance. Background: On January 26 k " 2015 the City Council scheduled a public hearing and adopted on first reading a new ordinance that if approved will replace the current franchise agreement with Center Point Energy. The franchise ordinance provides the City Council with the authority to impose a fee on the Utility which is passed through to the billed customer. Such franchise ordinance grants the utility the right to utilize the public right-of-away and other public properties for the purpose of constructing and maintaining natural gas facilities. The fees under this ordinance are established by separate ordinance. The monthly fees that are passed through to customer vary depending upon the type of service provided, ranging from $1.52 for a residential customer to $9900 for a Large Commercial or Industrial customer. The City Attorney has advised that the new ordinance should not be adopted until the fees are established with a new ordinance. We are in the process of completing our fee comparison review and will be discussing the fee ordinance with CenterPoint representatives shortly. Until a new fee ordinance is adopted the current fee schedule remains in effect. Therefore, we recommend that following the public hearing, the City Council direct staff to bring this ordinance back for your consideration at the same time the new fee ordinance adoption is under consideration. Budget Issues: There are no budget issues to consider. Strategic Priorities: o Vibrant Neighborhoods Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public (rust COUNCIL ITEM MEMORANDUM DATE: January 21, 2015 TO City Council FROM: Curt Bogan'ey, City Managl SUBJECT: Center Point Energy Gas Franchise Agreement Recommendation: We recommend adoption of the ordinance on first reading and to schedule a public hearing for February 23 at 7:00 p.m. for final consideration, Background: The Franchise Agreement with CenterPoint Energy has expired. We have continued to operate under the existing ordinance since June of 2013. The City Attorney has negotiated the attached ordinance initially proposed as a model ordinance by CenteiPomt Energy The ordinance provides that the City may impose a franchise fee pursuant to State law subject to review by the Public Utility Commission The ordinance itself does not result in a franchise fee, but rather creates the ability to adopt a franchise fee ordinance. The current franchise fee ordinance with CenterPoint Energy generates approximately $250,000 annually. The current franchise fee ordinance will remain in effect until amended It has been Council policy to use the funds collected to help pay for the annual street reconstruction program. Budget Issues: The Franchise Agreement with Center Point Energy generates approximately $250,000 annually to support the street construction program. These revenues are included in to 2015 capital projects fund budget. Strategic Priorities: Financial Stability ltJzs'cwn bnsuiti:g an attractive, dean, nife, zizclucre coninttnity lha(enlzantes the qua/iA of life for al/people ajuJpreseves the public 1rust RENEWAL (TYPE 11—two-year license) 360147 th Avenue North Ryan Creek Manor Passed with Weather Deferral Drew Kabanuk 5618 Hillsview Road Nita Morlock 4207 Lakeside Avenue #241 First House LLC RENEWAL (TYPE I— three-year license) 5959 Camden Avenue North Todd Havisto 7101 France Avenue North Luanne Thompson 5559 Lyndale Avenue North Passed with Weather Deferral Brett Hildreth 3016 Quarles Road Heather Terry 6448 Willow Lane Brett Hildreth 6c.APPROVAL OF ANNUAL REPORT ON FRANCHISE FEES 6d.RESOLUTION NO. 2015-33 APPROVING PROJECTED USE OF FUNDS FOR 2015 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING SIGNATURE OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS 6e. RESOLUTION NO. 2015-34 ACCEPTING BID AND AWARDING A CONTRACT, CENTENNIAL CIVIC & VETERANS MEMORIAL AMPHITHEATER PROJECT 61. RESOLUTION NO. 2015-35 APPROVING AN AMENDMENT TO JOINT AGREEMENT FOR STREET MAINTENANCE ACTIVITIES Motion passed unanimously. 7.PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS - None. 8.PUBLIC HEARINGS 8a. AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP., d/b/a/ CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY"), ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF BROOKLYN CENTER, IIENNEPIN COUNTY, MINNESOTA 02/23/15 FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF City Manager Curt Boganey introduced the item as the second reading of this ordinance, discussed the history including the first reading that took place on January 26, 2015, at the City Council Meeting. He also stated the purpose of the proposed ordinance, which allows CenterPoint to use the right-of-way on City roads to maintain current utilities. He pointed out that the franchise fee language expired in 2013 but will remain in place until the new franchise fee language is adopted. He, explained that this franchise language does determine the fee, which could be charged, but rather only the language authorizing it. The actual franchise fee will come back to the City Council along with adoption of the proposed ordinance around the franchise fee language. Staff recommends after this public hearing to have the City Council direct staff to bring this item back when the fee will be considered. Councilmember Ryan moved and Councilmember Graves seconded to open the Public Hearing. Motion passed unanimously. No one wished to address the City Council. Councilmember Myszkowski moved and Councilmember Ryan seconded to close the Public Hearing. Motion passed unanimously. Councilmember Ryan moved and Councilmember Myszkowski seconded to direct staff to bring this ordinance back to the City Council for consideration at a meeting when a hearing is held on the new franchise fee ordinance. Motion passed unanimously. 9.PLANNING COMMISSION ITEMS - None. 10.COUNCIL CONSIDERATION ITEMS Mayor Willson explained the streamlined process that will now be used to consider Type IV 6- Month Provisional Rental Licenses. Mayor Willson polled the audience and asked whether anyone was in attendance to provide testimony on any of the rental licenses as listed on tonight's meeting agenda. Seeing no one coming forward, Mayor Willson called for a motion on Agenda Items lOal through lOalO. lOal. 6013 ZENITH AVENUE NORTH 10a2. 4708-12 TWIN LAKE AVENUE 02/23/15 -4- City Council Agenda Item No. lOa City Council Agenda Item No. lOa #1 Ii[I1BMIJ I U I I A I I ak'A (I] 11I lSJk'A I DATE: August 10, 2015 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk 'J14IM)( I41WA( SUBJECT: Type IV 6-Month Provisional Rental License for 5556 Emerson 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 5556 Emerson 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 is a single family property. This property qualifies for a Type IV Rental License based on fifteen (15) property code violations found during the initial rental license inspection. 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 Rental 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: 01-14-2015 The Owner, John Reider, applied for an initial rental dwelling license for 5556 Emerson Ave N, a single family property. 02-11-2015 An initial rental license inspection was conducted. 15 property code violations were cited, see attached rental criteria. 03-11-2015 A second inspection was conducted and failed. A $100 reinspection fee was charged to the property. 03-26-2015 A third inspection was scheduled and there was not a representative at the property to provide access. A $100 reinspection fee was charged to the property. 04-08-2015 A fourth inspection was conducted and corrections were still not complete. A $100 reinspection fee was charged to the property. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust [S[O1IJ[S1 I U I MY4 I'A I IIh"A (II 1IIUBA'A I 04-08-2015 The $100 reinspection fee was paid. 04-14-2015 The $200 in respection fees was paid. 04-22-2015 A fifth inspection was conducted and passed with weather deferral. 05-06-2015 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. 05-26-2015 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. Weather deferred items were not completed. A $100 reinspection fee was charged to the property. The $100 reinspection fee was paid. All weather deferred items were corrected. A Mitigation Plan was submitted. The Mitigation Plan was finalized. A letter was sent to the owner notifying that the hearing before the Council will be held August 10, 2015. 06-09-2015 06-22-2015 06-24-2015 06-26-2015 07-30-2015 08-03-2015 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. Mission: Ensuring an attractive, clean, safe, inclusive conilnunity that enhances the quality of life for all people and preserves (lie public trust [EI1IJ[iJ I fl I Mh'4 L'A I hYA (I) 1II IIIi'A I 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. 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. frlissioiz: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust 1-2 units Greater than 1 but not more than 4 but not more than 1.5 Greater than 4 but not more than 8 Greater than 1 5 but not more than 3 Greater than 8 Type 11-2 Year Type III - 1 Year Type IV —6 Months [iII1U[iJ I N M I Dk'A L! I ak4 (ii WJ'A I 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. Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) Type 1-3 Year 1-2 units I 0-1 3+ units I 0-0 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 Mission: Ensuring an attractive, clewi, safe, inclusive community (11(1t enhances the quality of life for al/people and preserves the public trust I[I1IJ[i1 I fl I k'4 UhYA I Mh4 (I] 1I IIIJhYA I Abuse Act, Minnesota Statutes, Section 51813.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 51813.01, Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1-2 0-1 Impact 3-4 units 0-0.25 5 or more units 0-0.3 5 Decrease 1 1-2 Greater than 1 but not more than 3 Category 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 1-2 Greater than 3 Categories 3-4 units Greater than 1 5 or more units Greater than 0.50 Budget Issues: There are no budget issues to consider. Strategic Priorities: Enhanced Community Image Attachment - Mitigation Plan Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves (lie public trust BUILDING AND COMMUNITY STANDARDSCity ofBROOKLYN Rental Licens e Mitigation PlanCENTER Type IV License Handwritten Mitigation Plans will not be accepted. A fillable form can be found on the Cy's website at wwwcityofbrook1yncenter.org or call (763) 589-3330 to have an electronic copy sent toyou via email. Property Address: 5556 Emerson Ave North .. '.BrOk1yfl Center, FAN 55430 : . . ... .. . . . Ow n er's Nae(s): John Reider Local Agent(s): Housing Hub LLCm Owner's Address: 4150 Lake Rd . Ag en t's" Address: 2559 7th St WestRobbin0dale FIN 55443 Saint PauF MN 55116 Owner's Phone (612)418-3 5 63Agents Phone (61)488 2437 Owners Email jackrelderO@gmail corn Agents Email manager@hou!^inghubmn.com Current Expiration Date: 516/15 Pending Expiration Date: 11/51IS {Slmonthfrm License Exp. 02/28/2016 vss Based on property conditions and/or validated police nuisance incidents, the above referenced property qualifies for a Type IV-5 Month Rental License. Prior to application approval by the City Council a fully completed Mitigation Plan must be completed and approved by City staff. A Mitigation Plan must be completed immediately in order 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 cod, A Mitigation Plan allows the owner and the City to review concerns and identify possible solutions to improve overall conditions of the property. lithe Mitigation Plan is not submitted, and all items are not completed within the pending license period, or the above propertyoperates beyond the license expiration date, enforcement actions such as citation, formal complaint, or license review may result. Before submitting, fill-out Sections A, B, and C located on pages Z 3 4, and S. Page VS Type IV Ren tal Uçnse MiIigi1on Plan, Rev, 4-14-15 City of Brooklyit Ctev-3td1ding and ComiI1y Standards De p artmeht0301 Shingle Creek Padcwy, Bretiklyri Center, MN 55430-2199 1 Phone, (763)W 3-3 3 '30 I Tfl 711 I Ra x 753) 589 3360 BUILDING AND COMMUNITY STANDARDSCity of BROOKLYN Rental License Mitigation Plan Type IV License Sections A—Crime Free Housing Program Requirements Phase I 1)Use a written lease agreement. The lease agreement shall include the Crime Free Housing Lease Addendum. A copy of the lease agreement and Crime Free Housing Lease Addendum must be attached to the Mitigation Plan when submitted. 2)Agree to pursue the termination or lease agreement or eviction of tenants who violate the terms of the lease or any addend urns. 3)Conduct criminal background check for all new prospective tenants. If it is a current tenant a new background check is not required. Must be able to provide documentation to City if roqucstod. 4)Attend a City approved eight-hour Crime Free Housing training course. Information for approved courses can be found at www.mncpanet under the Training and Events tab. A copy of the Crime Free Housing Certificate must be attached to the Mitigation Plan when submitted. Crime Free Housing training was completed on/is scheduled for: Owner or agent attended/is planning to attend training at city of: Brooklyn Park, MN 7J 5) Submit Monthly Update by the I O day of each month. Phase II 1) Complete a Security Assessment and implement improvements requested by the Brooklyn Center Police Department. To schedule an initial or follow-up Security Assessment, call (763),969-3344. A follow-up assessment must be completed before the license expiration date to verify the security improvements have been implemented. If a Security Assessment has been previously completed, write the completion date. Security Assessment was completed on/is scheduled for: 7/17115 Security Assessment follow-up was completed onus scheduled for:aa— OWi/ Continue Sections A Phase Ill on page 3 A990 2V6 Type IVRerf&Lcnse 19ri Plan, Rev. 444-15 City of Br0 k1yn Ceer—Buidixg and C mmnily Standards Department vAwIybrooklyncenteror 6301 Shingle Creek Parkway, Brooklyn Oener, MN 55430-2100 1 Phone: (703) 563-3330 1 TTY: 711 1 Fa: (765) 56-3300 BIJXtJDING AND COMMUNITY STANDARDSCity of BROOKLYN. 5555 Emerson Ave North CENTER Brcoldyn Center, MN 55430 Rental License Mitigation Plan Typo IV License Sections A—CrIme Free Housing Program Requirements (continued) Phase IllRI 1) Owner or agent wi attend at minimum 50% (2) of the ARM. meetings. The &RM. meetings must be completed within the rental license period and before the pending Type IV License expiration date. Registration is not required, however you must sign-in during the meeting, Write two meeting dates an owner or agent plan to attend. Owner or agent will attend A.R.M. meetings scheduled on: and______ Z 2 Have no repeat code violations previously documented with the past year. The following actions are required for properties with four (4 ) or more units 1)Conduct resident training annually that includes crime prevention techniques. 2)Conduct regular resident meetings. Pa.90 3V6 Type JV Ren! License Fg9ior] Plan, RQv. 4-14-15 City of Brooklyn C ter—BuiIdiLg and Community Standards Department ,wNi.ciybmoklyncenterIr0 6301 6h1nlii creak ParRway, Oroo);yn Center, MN 5WO-2W 1 Phone: (763) 563-3330 1 TTY: 711 1 Fax (763) 569-3360 BUilDING AND COMMUNITY STANDARDS City of BROOKLYN [Brooklyn Center, MN530 Rental License Mitigation PlanCCl Type IV License Sections B—Long Term Capital improvement Plan Based on condition and age estimated replacement dates need to be provided for common capital itenis. Funding should be considered accordingly. Items that are broken, worn, or otherwise in violation prior to the estimated replacement date need to be replaced sooner. All items must have a date for Estimated Replacement Date. Dates such as: 'unsure", "don't know" or "when broken" will not be accepted. If you are unsure of when an item will need to be replaced, you can make a prediction based on the age, appearance, condition, or nianufactur&industr recommendations. Additional information on Expected Useful Life can be found at www.hudgov. Item Date Last Replaced Condition*Expected Replacement Date Example: Water Healer May 2010 F May 2020 Furnace Feb 2000 C Feb 2018 Water Heater May 2002 o Kitchen Appliances June 281h 2015 N June 2030 Laundry Appliances 2005 G 2020 Smoke Alarms/ Carbon Monoxide Alarms 2001 F 2020 Exterior Items Paint/Siding Stucco C 2020 Windows Ori gi nal F 2022 Roof Feb 2015 N 2030 -- Fence Shed Garage Driveway 2000 G Sidewalks Other Condition Abbreviations:NewN Good=G Fer=F Needs Replacement--R Page 416-Typa!V Rental Licins& MititQn Plan, Rev. 44445 City of Brok1yn r1r—BiI1ding and Community Standards 1)epr1utent www.cityobreeneentar.org 0161, Shingla Creek Perkway. Drxklyn Center, MN 5540-2159 1 Piene: (763)503-3330 I 1:711 I Fax: (763) 509-3360 BUILDING AND COMMUNITY STANDARDSCity of 5556 Emerson Ave North ____ B1N Center,MN43o Rental License Mitigation Plan Type IV License Sections c—Steps to improve Management and Conditions of Property The items in this section have been proven to assist with property management and property image, The following actions are required: [j i Check-in with tenants every 3D.days. 2)Drive by property to check for possible code violations. 3)Evict tenants in violation of the lease or any addendums. 4) Remain current on all utility fees, takes, assessments, fines, penalties, and other financial clairnslpayrnsnts due to the City. 1121 5) Other: The following actions are optional unless required by the City. 1) Provide lawn/snow service. fl 2) Provide garbage service. 3) Install security system, J 4) Provide maintenance service plan for appliances. Name of service company: [1] 5) Other: If the Type lV6 Month Rental License is approved by the City Council, the licensee must comply with the approved Mitigation Plan and all applicable City Codes. A written report must be submitted by the 1O day of each month with an update of actions being taken by the owner andlor agent to comply with this Mitigation Plan. A copy of the Monthly Update can be found on page 7. A tillable form can be found on the City's website at www.ciIyofbrooklyncenterorg or call (763) 69-3330 to have an electronic copy sent to you via email. Please attach additional information if necessary, Page rvrt5 Type iVRenel Lkense NINVation P16, Rev, 444-15 City oBookIyn C e—Bui1ding and Community Standards Dpmezit vhyofbrockryncenterorg 6301 Shiogle Creek Pekwy, Droaktyn Center, MN 55430219 1 phone: (763) 3.3330 1 TTY: 711 1 Fex: (763) 69-336O BUILDING AND COMMUNITY STANDARDS X1B3RC(0j 0xLyNtyof CENTER Brooklyn Center, MN 55430 1 Rental License Mitigation Plan Type IV License Sign and Verify I verify that all information provided is true and accurate. I understand that if I do not comply with the approved Mitigation Plan, comply with all items within the license period, or operate beyond the license expiration date, enforcement actions such as citations, formal complaints, or license review may result. Martin Krelzmann, Dir of Operations t? Housing Hub LLC Owner or Agent Warn end Title (Please Print) Martin 1< e tz ma jN a-DIcj I - 6 OwaerorAçjenl Signature Date Additional Owner or Agent Nne and Title (If Applicable. Please Print Additional Owner or Agent Signature (If Applicable Date City staff Only Police Department Date fi Lii g and ommun y Standards OepMnient Date Page 616 Type IVR etatLicen.se Mitigation Plan, 4-14- City of flrooldyn e1e— ilding and ornmuiiy ian1ard5 epartment 'wN/Mityofbrock1yncenter.org 6301 Shingle Creek Parkway, reok1yn Center. MN 55430-21 1 Phone: (73 63-3330 1 M.711 I Fax: (763) 569-3350 City Council Agenda Item No. lOa #2 COUNCIL ITEM MEMORANDUM DATE: August 10, 2015 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk J.4w 1 SUBJECT: Type IV 6-Month Provisional Rental License for 5131 Howe Lane 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 5131 Howe Lane. 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 renewal rental license. This is a single family property. The previous rental license was a Type II Rental License. This property qualifies for a Type IV Rental License based on eighteen (18) property code violations found during the initial rental license inspection and zero (0) validated police nuisance incidents for the past twelve months. 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 Rental 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: 02-02-2015 The Owner, Rafik Moore/RTO Investments LLC, applied for renewal of the rental dwelling license for 5131 Howe Lane, a single family dwelling. 04-07-2015 An initial rental license inspection was conducted. 18 property code violations were cited, see attached rental criteria. 05-07-2015 A second rental inspection was conducted and failed. A $100 reinspection fee was charged to the property. 05-22-2015 A third rental inspection was conducted and passed. The $100 reinspection fee was paid. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust [EI1II[SJ I NI I k'A I'A I Dk'A (I) II100 I 05-31-2015 The previous rental license expired. 06-04-2015 City records indicate zero validated police nuisance incidents occurred in the past twelve months. 06-04-2015 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. 06-23-2015 A Mitigation Plan was submitted, but not complete. More information was requested of the owner. 07-22-2015 A $300 Administrative Citation was issued for renting without a license. 07-30-2015 The Mitigation Plan was finalized. 08-03-2015 A letter was sent to the owner notifying that the hearing before the Council will be held August 10, 2015. If approved, after six months, a new rental license is required. The license process will begin within two 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. 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 Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and presert'es the public trust iII1IJ[iJ I U U N k'A Uh'A I k'4 [I) 1I mJi 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. 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 - Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust [EIlIJhYIJ I fl I V M Uh'A I $'A 0) 1I I1SJ1I 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. Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Onlv Type I - 3 Year 1-2 units 0-1 3+ units 0-0.75 Type II - 2 Year 1-2 units Greater than I 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 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 51813.01, Subd. 2 (a). Ililssion: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for al/people and preserves the public trust [EI1BJ[J I I V MhYA Uh'A I (I] 11I IiIJk I License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1-2 0-1 Impact 3-4 units 0-0.25 5 or more units 0-0.3 5 Decrease 1 1-2 Greater than 1 but not more than 3 Category 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 1-2 Greater than 3 Categories 3-4 units Greater than 1 5 or more units Greater than 0.50 Budget Issues: There are no budget issues to consider. Strategic Priorities: Enhanced Community Image Attachment - Mitigation Plan Mission: Ensuring an attractive, clean, safe, inclusive community 111(11 enhances the quality of life for all people and preserves the public trust 3 131JUMING AND COMMUNITY STANDARDS CityBR'S Rental License Mitigation PlanCENTER Type IV License Handwritten Mitigation planz will not be accepted A flUabte forni can be found on the City's website atwww.cityofbrooklyncenter,0Y9 or cell (763) 589-3330 to have an electronic copy sent t you via email. Fropetty Address: 131 Howe Laneernoklyn center MN W2.9 Owners Natne(s): R1ik McI RTO lnvetrnerits LW norms Address: 0D5 Wyze BiTevrd. SW 100 Si. Louis Park MN Owners Phone; 92) 757499 Owners ErnTl: rafikmoore@gmall.com J1* Local Agent(s): 1 (96f AgentaAddre Q) ç LkaI 1c V Agents Phone::/-3::;5 f24ç' Agents EmaiE:i cunEpirafen Dt: / i/o s# Rate Ii J ?v/ zoi -frin) - Based on property conditions and/or validated police nuisance incidents the above referenced property qualifies for a Type IV..6 Month Rental License. Prior to application approval by the City Council a fully completed Mitigation Plan must be completed and approved by City 5teff A Mitigation Plan must be, completed immediately in order 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, A Mitiation Plan allows the owner and the City to review concerns and identify possible solutions to improve overall condltlons of the property. If the Mitigation Plan is not subroitterl, and all items are not completed within the pending license period, or the above property operates beyond the license expiration date, enforcement actions such as citation, formal complaint or license review may result Before submitting, fill-out Sections A, B, and C located on pages 2, 3 4, and 5. Fg 115 TyT,\q iVP.nt1LIOm MbIk Y?n, 1V Ctfb1dy Cent Wldln5 m4 Ccut1ty5ani1zd Dnrnit ,QPo1iyiicflIer.O1g eOI ShIngte Creek Pai1vay, Bratk1n renter, MN 5MM-21 S9 1 Phone: f70 I TFY:111 l (785) 8O93UQ BWLDINC AND COMMUNITY STANDARDS XBROORLYN 55425 - J Rental License M1tigatirn PlanCENTER Type IV L$cense Sections A-Crime Free Housing Program Requirements Phase I j 1) Use a written tease agreement, The teaae agreement shall 1CIUde The Crime Free Housing Lease Addendum. A copy of (ha lease agreement and Crime Free Housing Lease Addendum tntit be attached to the Mitigation Plan when Submitted. J 2) Agree to pursue the termination or lease agreement or eviction of tenants who violate the terms of the lease or any addend urns. EI1 ) Conduct criminal background check for all new prospective tenants, If it is a current tenant a new background ctieck is not required. Must be able to provide doaurnentaUon to City If requeste J 4) Attend a City approved eighthour Crime Free 14ouslng training course, Information for approved courses can be found at w wmncpa.net under the TraTh!ng and £vants tab, A copy of the Crime Free Housing Certificate must be attached W the Mitigation Plan when submitted. Crime Free Housing training was completed ønlls scheduled for !iV I Owner or agent attertdedlis planning to attend tralning at city of Dk111tI1{ 2)ZI 5) Submit Monthly Update by the 1Ot1 day of each month. Phase II IZJ 1) Complete a Security Assessment and Implement improvements requested by the Brooklyn Center Police Department. To schedule an initial or follow-up Security Assessment, call (763) 569w3344. A follow-up assessment must be completed before the license expiration date to verify the security improvements have been implemented. If a Security Assessment has been previously completed, write the completion date. Security Assessment was completed onfis scheduled for: 6P-611 5 Security Assessment follow-up was completed on/is scheduled tar: 706115 Continue Sections A Phase III on page 3. poga 21 Type W RenW Ucsnsi e40,9alion Hart, R'- 4.445 City vf9xoaWynCenter—Bui1dtug and Caiurniiulty Stantlazds 11 apartment 6301 5hirsj1e CreT Prkwy, erQkIyn Center, MN E643s15 I Piew (165) E633O I TrY I Fec (163) 565-3560 BUILDING AND COMMUNITY STANDARDS City of MI HoNe Lane BJiTN rookflCBRtrMN 55423 j Rental LIenee Mitigation Plan ________ Type IV License Sections A—Crime Freo I*iuIngFrgrarn ROPIMineMs (cott/nued) Phase III [7J 1) Owner or agent will attend at Minimum 50 14 (2) ,of the ARM. meetings, The A.R.M. meetings must be completed within the rental license period and before the ppndlng Type IV License expiratIon date Registration is not required, however you nlustslgrHn during the meeting. Write two meeting dates an owner or agent plan to attend. Owner or agent will attend ARM. meetings actieduled cr1: 01101-15 and ! IM 2115 2) 1-lava no repeat code violations previously documented with the past year. The foiJowing actions are required for properties with four (4) or more units. LI 1) Conduct resident training annually that includes crime prevention techniques. 0 2) Conduct regular resident meetings. Pago 3(8 jpNJnhl Lina Mii&ii Pan, Fv, 4-14- 15 City .tBrcrnk1yn Cantor— lllixj an CQrn1n.tty Slandard-11 U8pal-tnlent wiLthrO*lyntfl1etOCiJ 6301 Gbingle Creek Fii1ce:iy. eIuk1]rn Oerr. MN SS43O-2l9I Fi1ru3: ('76 56-330 f TTY 711 I F8 (783) BUILDING AND COMMUNITY STANDARDSXJ3 1 Rental License Mitigation Plan Type IV License Sections B—Long Tenn Cip:ta! Improvement Plan Based on condition and age, estimated replacement dates need to be provided for common capital items. Funding should be considered accordingly. Items that are broken, warn, or otherwise in Violation prior to the estimated replacement date need to be replaced sooner. All items must have a date for Estimated Replacement Date, Dates such as "'unsure", don't know", or "when broken' will not be accepted. If you are unsure of when an item will need to be replaced, you can make a prediction based on the age, appearance, condition, or msnufacturefiridustry reoornmendations. Additional information on Expected Useful Life can be found at www.hud.gov . Item Date Last Replaced Emple: Furnace Unsure of install Water Neater 2013 Kitchen Appliances 2013 Laundry Appliances 2013 Smoke Alarrnsl Carbon Monoxide Alarms 201i 2015 Exterior Items Paint/Siding 2013 Windows 2013 Roof -2005 Fence unsure Shed noshed Garage unknown Driveway unknown Sidewalks unknown Other: Condition*Expected Replacement Date F May 2020 G El April 2018 April 2023 f1 April2023 G fJ April 2023 G Jan 2020 April 2018 (3 April 2023 G JJ April 203 A061 2023 n,'a F Ft April2020 April 2020 G April 2020 - Condilløn Abbreviations; NvpN GoodG FaFrF Needs ReplaoementR Page 41 Type 11/ RflI License Mi°tiatk'n Flan, Rev. 4-14-15 City ofrokIyn Center—Bfldq and imttnity Standards Department mwcityotbrooktyncenteror9 6301 Snlrle Creek Parkway, Brooklyn Center, MN 5543O21 89 1Phone: 763) 563-3330 1 TTY: 711 1 F: 763 569-3300 BUING AND COMbMNITY STANDARDS=TBRCCENTER BmOWyrICerMN 5s42 tt itigation Plan rype IV Licentse- Ser,tions G—Step5 to Improve Management and Conditions of Property The items in this section have been proven to assist with property management and property image. The following actions are required; [1]1)Check-in with tenants every 30-days. {J 2)Drive by property to check for possible code violations. j 3)Evict tenants in violation of the lease or any add endums, 4)Remain current on aH utility fees, taxes, assessments, fines t peniLie, and other financial clalmsfpayrnents due to the City. 5)Other: - The following actions are optional unless required by the City. El 1) Provide lawnfsnow service. 0 2) Provide garbage seivice 3) Install security system. 0 4) Provide maintenance service plan for appliances, Name of service company: 5) Other: If the Type IV-6 Month Rental License 15 approved by the City Council, the licensee must comply with the approved Mitigation Plan and all appiicble City Codes. A wtit-ton report must be submitted by the 10 day of each monthwith an update of actions beIngtken by the owner ndJor agent to comply with this Mitigation Plant A copy of the Monthly Update can be found on page 7. A lil lab le form can be found on the City website at www.cltyofbrooklynoenteror or call (763) 5694330 to have an clealronlo copy sent to you via email Please attach additional information if necessary. paye ma Type IV Re n lafLicise M1ii(Vj Fkir, Rev. 4-44-15 City Offflroolrlyn Center—Building iid Community - Standu Department viyôokJyceier, are 6301 5hti1e Cc.k Pikway, arookyr Crer, MI 5543O-219 I F1iie: 763J 565-53O rrV;7Ii F47519.335 BUILDING AND COMMUNITY STANDARDS C"y 6131 Hune Lane ENTER ookyn C e nter MN 55429 Rental License Mitigation Plan=Tj a RN Type IV License Sign and Verify verify that all information provided is true and accurate. I underthnd that if I do not comply With the approved Mitigation Plan comply with all items within the license period, or operate beyond the license expiration date, enforcement actions such as citaliona, formal complaints, or license review may reaijlt. Ralik MoirTRTO I n ves t m e nts LLC (Ownei owner or n Nome ai,d Me (Pleaso Pi-inf) -- 0', Stephanie Farrra (AsistariL Prop1ty Ma n a g r) Addilloi i al Ovrer or 4iit No a) and Tub (if AppIicible, Pie a gig Print) 6/22fi oiAgerit SignatuFoo (IMppi/rabf&) City Stf0nIy Police Department hüQj^ldhj fill ddo mmunAy $anc1tdg Departm e nt OIe Pi-Qe 15/15 - ______ 1RrNJLtTOfl R1 4444 CLty or kIyit ct —t1t1dtnq m,vu lty St a nd ard Daptmt 6 3 01 ShIngle Crk Pw,', 8r61d MN 543Q-219 1 Phw (7}O J 1Ti 711 I a; O9-36O City Council Agenda Item No. lOa #3 IEI]PI[SJ I R N N DIk'A UhYA I k'A (I) 1I UIJ4 I DATE: August 10, 2015 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk Jk27M 'j<il'k SUBJECT: Type IV 6-Month Provisional Rental License for 7033 Unity Ave N Recommendation: It is recommended that the City Council consider approval of the Mitigation Plan, Resolution and issuance of a Type IV 6-Month Provisional Rental License for 7033 Unity 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 renewal rental license. This is a single family property. The previous license was a Type IV Rental License issued on February 28, 2015, on condition of adherence to the Mitigation Plan and City Ordinances. The property would qualify for a Type II Rental License based on three (3) property code violations found during the initial rental inspection and zero (0) validated police nuisance incidents for the past twelve months. However, the owner failed to comply with the Mitigation Plan and applicable Ordinances, specifically failed to attend Owners/Managers Association Meetings, turn in monthly updates, and failed to complete security improvements. According to City Ordinances, if the requirements of the license category and the Mitigation Plan are not met, the license renewal category remains a Type IV. City Ordinance Section 12-901.2 requires a licensee of a Type IV Rental Property to complete Phase II of the Crime Free Housing Program. City Ordinance Section 12-914.3.c requires an owner (or authorized representative) to attend a minimum of 50 percent of Owners/Managers Association Meetings. Staff is recommending approval of the continued Type IV Rental License in lieu of denial, revocation or suspension because the owner is working with staff to meet the license requirements and the property is currently in compliance with the ordinance. The following is a brief history of the license process actions. Mission: Ensuring an attractive, clean, safe, inclusive community that en/lances the quality of life for all people and preserves the public trust [iIS1Ih'[i1 I R I I k4 U I 3k'A [I) 1WI iiei Current rental license approval activities: 02-28-2015 The previous Type IV Rental License expired. 03-02-2015 The owner, Matthew John Vetter, applied for renewal of the rental dwelling license for 7033 Unity Ave N, a single family dwelling. 03-17-2015 A $125 Administrative Citation was issued for not meeting mitigation plan requirements. 03-24-2015 An initial rental license inspection was conducted. Three property code violations were cited, see attached rental criteria. 04-27-2015 A second inspection was conducted and failed. A $100 reinspection fee was charged to the property. 05-05-2015 A $300 Administrative Citation was issued for renting without a license. 05-06-2015 The property was posted as unlicensed. 05-20-2015 The $100 reinspection fee was paid. 05-29-2015 A third inspection was conducted and passed. 06-04-2015 City records indicate zero validated police nuisance incidents occurred in the past twelve months. 06-04-2015 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. 06-11-2015 A $250 Administrative Citation was issued for not meeting mitigation plan requirements. 06-29-2015 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. 06-29-2015 A Mitigation Plan was submitted. 07-21-2015 The Mitigation Plan was finalized. 08-03-2015 A letter was sent to the owner notifying that the hearing before the Council will beheld August 10, 2015. Previous Type IV Rental License approval activities: 08-18-2014 The owner, Matthew Vetter, applied for renewal of the rental dwelling license for 7033 Unity Ave N, a single family dwelling. 08-31-2014 The previous Type IV Rental License expired. 09-05-2014 An initial rental license inspection was conducted. Eight property code violations were cited, see attached rental criteria. 09-05-2014 The property was posted as unlicensed. 10-06-2014 A second inspection was conducted and failed. A $100 reinspection fee was charged to the property. 10-07-2014 A third inspection was conducted and passed. The posting was removed. 10-20-2014 A $300 Administrative Citation was issued for renting without a license. A $100 reinspection fee still owed. 10-28-2014 A $600 Administrative Citation was issued for renting without a license. A $100 reinspection fee still owed. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust i1IJ[iJ I fl I I U I Mh'A (1) 1I IIJJIYA1 11-20-2014 A $1,200 Administrative Citation was issued for renting without a license. A $100 reinspection fee still owed. 12-04-2014 A $2,000 Administrative Citation was issued for renting without a license. A $100 reinspection fee still owed. 12-08-2014 The $100 reinspection fee was paid. 12-22-2014 The $2,000 Citation was dismissed after a meeting with the property manager. property manager stated that the owner is in the military and moves around frequently so the mail is lost or not deliverable. The property manager stated that the mail at the PO Box address was getting lost and he did not receive the citations or notices. He called once he received the $2000 citation to discuss the options. 01-07-2015 City records indicate zero validated police nuisance incidents occurred in the past twelve months. 01-07-2015 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. 02-18-2015 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. 02-27-2015 A Mitigation Plan was submitted. 03-03-2015 The Mitigation Plan was finalized. 03-16-2015 A letter was sent to the owner notifying that the hearing before the Council will be held March 23, 2015. Prior Type IV Rental License approval activities: 11-12-2013 The Owner, Matthew John Vetter, applied for renewal of the rental dwelling license for 7033 Unity Ave N, a single family dwelling. 12-05-2013 An initial rental inspection was not conducted. No one present for inspection. 12-19-2013 A second rental inspection was conducted and failed. 16 property code violations were cited, see attached rental criteria. 02-10-2014 A third inspection was conducted and passed. A $100 reinspection fee was charged 02-24-2014 A Fourth rental inspection was conducted and passed. 02-26-2014 Reinspection fee was paid. 02-28-2014 The previous rental license expired. 03-03-2014 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. 06-04-2014 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. 06-16-2014 A Mitigation Plan was submitted. Mission: Ensuring an attractive, clean, safe, inclusive coininunhly that enhances the quality of life for al/people and preserves the public trust [EI1IJ1 I I I DShYA L'A I Dk'A (I) 1IWJhYA I 07-01-2014 The Mitigation Plan was finalized. 07-17-2014 A letter was sent to the owner notifying that the hearing before the Council will be held July 28, 2014. If approved, after six months, a new rental license is required. The license process will begin immediately. 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. 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 community that enhances the quality of life for all people and preserves (lie public (rust [I1Ik[iJ I N I k'A U'A I k'A (1) 1I I1IJi 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 [EI1IJJ I fl I I k'A U I 31h'A (I] lIJhYA I Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) 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 -F 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 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 51813.01, Subd. 2 (a). License -Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1-2 0-1 Impact 3-4 units 0-0.25 5 or more units 0-0.35 Decrease 1 1-2 Greater than 1 but not more than 3 Category 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 1-2 Greater than 3 Categories 3-4 units Greater than 1 5 or more units Greater than 0.50 iWissioji: Ensuring an attractive, clean, safe, inclusive conununity that enhances the quality of life for all people and preserves the public trust [iII1IJ[i1 I U N ak'A Ih I 3I4 (I) IWI I1SJ I Budget Issues: There are no budget issues to consider. Strategic Priorities: Enhanced Community Image Attachment - Mitigation Plan - Resolution Approving a Type IV Rental License for 7033 Unity Ave N 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 APPROVING A TYPE IV RENTAL LICENSE FOR 7033 UNITY AVE N WHEREAS, City Ordinance Sections 12-900 to 12-916 set forth requirements for licensed rental properties; and WHEREAS, the property located at 7033 Unity Ave N, was issued a Type IV Rental License on February 28, 2015; and WHEREAS, City Ordinance Section 12-901.2 requires a property owner who receives a Type IV Rental License complete Phase I, II and III of the Crime Free Housing Program; and WHEREAS, City Ordinance Section 12-914.3.c establishes the requirement for Phase II of the Crime Free Housing Program including attendance at a minimum of 50 percent of Owners/Managers Association Meetings and completion of Crime Prevention Through Environmental Design Requirements; and City Ordinance Section 12-913 requires submittal of monthly updates; and WHEREAS, the property owner of 7033 Unity Ave N, Brooklyn Center failed to attend Owners/Managers Association Meetings, complete security improvements, turn in monthly updates, and/or other requirements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that a TYPE IV Rental License is hereby approved for the property at 7033 Unity Ave N, Brooklyn Center, MN. August 10. 2015 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. C AND COMMUNITY STANDARDSCity ofBROOKLYN CENTER JUL Rental License Mitigation Plan- Type IV License Handwritten Mitigation P/ens-wiQiot be website at www.cityofbrookIyncenterTF-o you via email. Property Address: 7033 UNITY AVE, eROOl<LYN CENTER MN 55430 Owners Name(s): MAT? VEITER Owners Address: Owner Phone: Owners Email: Current Expiration Date: t/ijqi ( Afiftable form can be found on the City's 5039-333O to have an electronic copy sent to Local Agent(s); M AND N PROPERTIES Agents Address: PODOX75 55325 Agents Phone: (78)972-811J Agents Email: MANONPROP5GMAIL,COM Pending Expiration Date: /3 J74J] (;51x niqnIh rrn arrie ri t eitiiI j f -7 Based on property conditions and/or validated police nuisance incidents, the above referenced property qualities bra Type IV-6 Month Rental License. Prior to application approval by the city Council a fully completed Mitigation Plan must be completed and approved by City staff, A Mitigation Plan must be completed Immediately in order 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. A Mitigation Plan allows the owner and the City to review concerns and identify possible solutions to improve overall conditions of the property. U the Mitigation Plan is not submitted, and all items are not completed within the pending license period, or the above property operates beyond the license expiration date, enforcement actions such as citation, formal complaint, or license review may result- Before submitting, fill-out Sections A, B, and C located on panes 2, 3,4, and S. Page 116 Type jJ rU1, POW, Rrv. 4-14-15 City of Bok1yit Center—Building and Conmuinity Standarde Daparirneni 0301 Shingle Creek Parkway, Brooklyn Center, MN554O-2l 1 Phcne:(7G3)O3-333O I UY:71 I Fac (?e3)5ss-3Eo BUILDING AND COMMUNITY STANDARDS CENTER CyoJ ROTh CE NTE R MN 65430 Rental License Mitigation Plan Type IV License Sections ACr!me Free Housing Program Requirements Phase I 1)Use a written lease agreeiieni The lease agreement shall include the Crime Free Housing Lease Addendum. A copy of the lease agreement and Crime Free Housing Lease Addendum must be attached to the Mitigation Plan when submitted. 2)Agree to pursue the termination or lease agreement or eviction of tenants who Violate the terms of the lease or any addendurn.s. J \ ,L.onduct criminal background check for all new prospective tenants- If it is a current tenant anew background check Is not required. Must be Weto provide documentation to City if requested. 171 4) Attend a City approved eight-hour Crime Free Housing training course. Infomiation for approved courses can be found atw winncpa.riet under the Tra/n/ng wd Events (ab. A copy of the Crime Free Housing Certificate must be attached to the Mitigation Plan when submitted. Crime Free Housing training was completed on/is scheduled for; 12j&c Owner or agent attended/is planning to attend training at city of ) Submit Monthly Update by the 10 1 'day of each month. Phase II J 1) Complete a Security Assessment and implement improvements requested by the Brooklyn Center Police ]Department. To schedule an initial or tottowup security Assessment call (763) 59-3344. A follow-up assessment must be completed before the license expiration date to verify the security improvements have been Implemented. If a Security Assessment has been previously completed write the completion date. Security Assessment was completedon/is scheduled for: Security Assessment follow-up was completed on/is scheduled for .' Continue Sections A, Phase ill on page 3. Rige 216 ?v. 4-14- City ofBok1ynCenter—Building attd Community StgndAyds DepaAxnent 01 Shingle Crk Prkw2y, enckiyri Cner, MN 554Q-21 Phone: (763)593-21 330 I TFY: 711 I Fa 1763) G9535 BUILDING AND COMMUNITY STANDARDS XBPCICI OIyN 7033UNITYAyE, NTER BROOKLYN CENTER MN 55430 Rental License Mitigation Plan Type IV License Sections A—Crime Free Housing Program Requirements (continued) Phase III IZI 1) Owner or agent will attend at minimum O% (2) of the ARM. meetings, The A.R.M. meetings must be completed within the rental license period and before the pending Type IV License expiration date. Registration is not required, however you must sign-in during the meeting. Write two meeting dates an owner or agent plan to tterid. Owner or agent ll attend A. R.M. meetings scheduled 09A9 [()and N flV' I 2) Have no repeat code violations previously documented with the past year. The following actions are required for properties with four (4) or more units fl 1) Conduct reidert training annually that includes ceirne prevention techniques. 2) Conduct regular resident meetings. F'ge a/a Type iVRetv! Uce.ns 4*tbo P/err, Reki. 444.15 City of Bmoklyn C ttiidit Cc m-murtitySiamdaribDapattment 'ii,llyThooklynenier.org 6301 Chjnqte Creek Perey, rk1yrr Center. MM 430-2t Phone: (76B)SO -33-:1 0 J 1TY: 711 I Fe: (763) 50U-3360 BUILDING AND COMMUNITY STANDARDS TBRCOOKLYNty QT MR UNITY AVE, BROOKLYN CENTER MN 55430 Rental License Mitigation PlanCENTERType IV License Sections B —Losiq Term Capita! Improvement Pla n Based on condition and age, estimated replacement dates need to be provided for common capital items. Funding should be considered accordingly, Items that are broken, worn, or otherwise in vioJtion prior to the estimated replacement dale need to be replaced sooner. All items must have a date for Estimated Replacement Dee. Dates such a:"unsure","don't know 1 or "when broken' will not be accepted If you are unsure of when an item viill need to be replaced, you can make a prediction based on the age, appearance, condition, or nianufactur&industry recommendations, Additional information on Fpected Useful Ufe can he found atw.vwhudgoV. Item Date Last Replaced Exam pie: Water Heater May 2010 Furnace 1 Water Heater Kitchen Appliances 2011 LaUndPJ Appliances 2011 Smoke Alarms/ Carbon Monoxide Alarms 2015 Condition* Expected Replacement Date F May 2020 2019 0 2018 2018 0 2015 0 2015 Extertori t ems Paint/Siding ASSOCIATION Windows ASSOCIATION Roof Fence Shed ASSOCIATION Garage Driveway ASSOCIATION Sidewalks ASSOCIATION Other: N 2030 'Condition Abbr1atiris NwN GIG FiirF Needs RepkcemeritR Fj&41.6 Type ;-V ReRkllUcene Jgaic R.iv. 444-1E Olty Qf13rooklyn Cnt —uiIdhy Comiunity Standaxd9 Depavünent ww.ityobrcIynnkrer0 63J1 ShinçI& Creek Prkwy, rockIyn Oniler MN G3D-219 I Phorin: l73 3-333O ITY: 711 1 I7 x (753) 3360 BUILDING AND COMMUNITY STANDARDS A-BRIOCOIUYNTCityf 7031 UNITY AVE, EpookLyNcErTR MN 66430 Renta' License Mitigation PlanCENTER Type IV License Sections C--Seps to Improve Management and Conditions of Property The items in this section have been proven to assist wfth property management and property image The following actions are required; J 1) Check-in Wth tenants every 30-days. J 2) Drive by property to check for possible code Violations. 3) Evict tenants in violation of the lease Or any addendurns. i I It4) Remain curieni on all utility fees, taxes, assessments, fines, penalties, and other ''financial claimslpayments due to the City. ) Other: Th following aotlons.arp optional inEe mquIr1 by IhP CHy. 1) Provide lawn/snow service. I 2)Provide garbage service. I 3)Install security system.I 4) Provide maintenance service plan for appliances. Name of service company:a ) Other: ASSOCIATION If the Type IV-6 Month Rental License is approved by the City Council the licensee must comply with the approved Mitigation Plan and all applicable City Codes, A written report must be submitted by the 10th day of each month with an update of actions being taken by the owner and/or agent to comply with this Mitigation Plan. A copy of the Monthly Update con be found on page 7. A fillable form can be found on the City's website at www.cltyofbrooklyncenter.org or call (763) 5-3330 to have an electronic copy sent to you via email, Pease attach additional information if necessary. Page. Type I'f R tLtir tri FVWi. R 4-1445 City of BiaatIyz nt=Buiidii.g and Cointaunity Standards tttnt .yobrcinrr.r 03[I1 ShrngIoCfbk Parkway, CcüJyri Cer.ter, MN543O.2i59 I Phon (?G3)5633O 1T'; 711 I FBx: (763) 569-asGo BUILDING AND COMMUNITY STANDARDS City of 7033 UNIT(AVE. - BROOKLYN _______CENTER BROOKLYN CENTER iN 540 Rental License Mitigation Plan ______________________ Type IV License Sign and Verify I verify that all information provided Is true and accurate. I understand that if I do not comply with the approved Mitigation Plan, comply with all items within the license period, or operate beyond the license expiration date, enforcement actions such as citations, formal complaints, or license review may result. M AND N PROPERTIES OwnercrAgt?Qemer,ci Tfte (Ple as e, Print) 7l10)2O1 (L '-Owner An1 MAGGIE HAMATY Ac1itionI Owpator-Agent Name end T#L (Y Applicable, Please Flint) L-= Additional Owner QrAgw7l SliaLura (if Aip!ibte) City Stiff Only 1e(MQ Police Department - i/is Data (17/I J?, 8th ag ad Cbmrntmity Standards Depatmef / te Page Type Rf Renal Ltcenw MWiVa flon Plan, Ray, 444-15 Date Date City of Bci]1y Center—Building and Community Standards flap r1nt \w1w.ityofbrQkIyrenler,cr 6301 5tinIe Creek Parkway Broeklyn Cen&', MN 551 so-zigo I Phur: (?2) 5$3-3930 1 Th: 711 I Fax: (763) 59330 AGENDA CITY OF BROOKLYN CENTER CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION August 10, 2015 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 Funding Strategy to Bridge the Financial Gap for the Development of the Brooklyn Boulevard Senior Housing Project (Former Cars with Heart Site) PENDING LIST FOR FUTURE WORK SESSIONS Later/Ongoing 1.Sister City Voinj ama Visit Update 2.Paperless Packets Report 3. Opportunity Site (Redevelopment Strategy) Work Session Agenda Item No. 1 MEMORANDUM COUNCW WORK SESSI{ON DATE: August 10, 2015 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Funding Strategy to Bridge the Financial Gap for the Development of the Brooklyn Boulevard Senior Housing Project (former Cars with Heart Site) Recommendation: It is recommended that the City Council consider providing direction to staff regarding the use of Tax Increment Financing to bridge the financial gap for the development of the Brooklyn Boulevard Senior Housing Project, located at the former Cars with Heart Site. Background: On March 9, 2015, the City Council/EDA Work Session included a discussion on the potential sale and redevelopment of approximately 5.5 acres of EDA owned properties, located at 6121, 6107 and 6101 Brooklyn Boulevard for an affordable assisted care senior apartment development consisting of the following: a four story apartment building with 140, one-bedroom senior assisted care units; and a one story building with 24 studio units offering specialized assisted care for seniors. The City Council/EDA reviewed a conceptual plan overlaid on an aerial photograph of the site and a narrative provided by SCA Properties and Evergreen Real Estate Development Corporation describing their plans to develop and operate an affordable assisted senior housing project using Low Income Housing Tax Credits and Medicaid Elderly Waiver reimbursements. The City Council/EDA determined the conceptual development illustrated by SCA Properties was consistent with the EDA's development vision for this site, and that Staff was directed to proceed with negotiating a Letter of Intent with SCA Properties for the development of an affordable assisted care senior housing project. On March 23, 2015, the EDA adopted Resolution No. 2015-06, a Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn Boulevard. Attached for reference is a copy of the Letter of Intent and the staff memorandum considered at the March 23rd EDA meeting. Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public (rust k74 I k'A 0) t1II liii 'A ES1IJ[SI I 11 1111 " N , CI IIb1 0II Letter of Intent and Exclusive Negotiating Agreement (approved on March 23, 2015): The Letter of Intent identifies the proposed senior housing project and provides a purchase price of $1,763,398 (represents EDA's acquisition costs of all three properties), which is proposed to be paid from tax increment revenue generated from this development, and includes the following schedule: Exclusive Negotiating Period and Negotiations of Contract of Sale - a period of 90 days during which a detailed Contract of Sale is negotiated and executed. During this time the EDA agrees to refrain from and discontinue any existing marketing or negotiations with others concerning the sale of the Property (March —June). Feasibility Period commences upon execution of the Contract of Sale and provides the Developer with 120 days to investigate the feasibility of developing the Property, such as environmental studies and soil tests and undertaking studies to determine the feasibility of the project, such as obtaining the necessary financing and development approvals (June - October). Settlement Period occurs within 180 days from the date the Purchaser/Developer is in receipt of the necessary approvals and financing commitments to begin construction, but not later than 15 months after the execution of the Contract of Sale (June 2015 - September 2016). The Letter of Intent identified two contingencies relating to the EDA's sale of the property: 1.Approval by the Seller/EDA of the sale of the Property after a public hearing in accordance with the applicable law; and 2.The creation of a tax increment financing district pursuant to Minnesota Statutes. The creation of a new Tax Increment Housing District was proposed to accomplish the following: 1.Reimbursement of the TIF 3 Housing Account to enable the EDA to invest in future affordable housing projects and other eligible housing activities; 2.Provide funds for the future acquisition of the two adjacent single family residences on 61St Avenue at such time as these property owners decide to sell; and 3. Provide a budget for enhancements to this project should additional Tax Increment become available. Mission: Ensuring an attractive, clean, safe, inclusive cOlnJflunhty that enhances the quality of life for all people and preserves the public trust IA I 1k'A 0] t1I aiJh"A i[I1IJ[* I !e'LI] 1 1F'fI (O1 Proposed Amendment to the Letter of Intent (to address the financial gap): The March 23 td staff memorandum recognized a financial gap of approximately $2,000,000 that was intended to be addressed during the Negotiations and Feasibility Period. Efforts to determine if this area could be identified as a QCT area (Qualified Census Tract) and/or secure other financial support from Metropolitan Council, Minnesota Housing Finance Agency and Hennepin County were unsuccessful. Additionally, changes in the structuring of long term financing resulted in the financial gap growing to approximately $3,000,000. The following funding strategy is proposed for the EDA' s consideration in bridging this financial gap: 1.The developer will address $1.5M of the gap by deferring 50% of their development fee; and 2.The creation of a TIF Housing District with a Pay-As—You-Go Note would provide the remaining $1.5 M cash needed, plus $300,000 for the future acquisition of two adjacent properties. The new negotiations also provided a revised site layout with the developer proposing that the development would be limited to the 6121 Brooklyn Boulevard site (4.5 acres acquired for $1,500,000) and that the EDA's conveyance of the land would be in the form of a 2' mortgage with provisions for a repayment formula from the sales proceeds should the property be sold. Tom Denaway, Springsted Financial, has prepared the attached memorandum on the need for assistance determination (But For Test) and exhibits illustrating how the project will generate tax increment, a cash flow analysis over the term of the district, and a payment schedule for the Pay- As-You-Go Note, and a schedule for the creation of a new Tax Increment Housing District. Policy Issues: Does the EDA support a strategy to fund the financial gap of the proposed Brooklyn Boulevard Senior Housing with the use of a TIF Pay-As-Go-Note? Strategic Priorities: Targeted Redevelopment fuss/on: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves the public trust 6000 - 6100 BLOCK nrn<i 'IN ROULEVARD • H \ #o lpr T225 jL 6224 ___ - 6ww ' - I V. 6225 \ 4 - (X 6212 \\ \ , -• 1±.. - 6224 6206 6 6207 6200 I r7.1 L 3001 . _ \ 326200 3500 6201 1 r - - — ---- - - — \ i - j- L — - ---- - \1' •- '- \ 6142- / ) ----r\ - \ k J I -ii- 6142, - •--- --i — -.. \ S-1 I I 4 6136j 38011ii i6134) I 1'\ PA-H \ (1 612) I -- -- ------- -.4. -f16120 6121. 6116 - 1 —_- I41 (1 I _I::lS . I - 4$S 6107 '- &.4L6110- L 3600 :W I 6100 — L 22 ArHi :; 1--- ' IIf T - 6044 PJ I II I — I 3613 3807 601 3713 j I 6037 I\ \IrY (6037 -. 6036'6 -i Ark. L ISM 66311 - - 6 1 oo0 - A''-1 0011 ç- 3716 3712I '106 06 I - 0 ;k - I-, - ; . , , , 0 25 50 100 150 200 MEMORANDUM Sprinqsted Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 wspringstedcom TO: Gary Eitel, Business and Development Director FROM: Tom Denaway, Assistant Vice President/Consultant DATE: August 4, 2015 SUBJECT: Brooklyn Center Affordable Assisted Living - Need for Assistance Determination At the request of the City we have prepared this determination of the potential need for financial assistance for an affordable housing assisted living project, to be located on the former "Cars with Heart" site at 6121 Brooklyn Boulevard in the City of Brooklyn Center. The Developer SCA Properties is proposing the development of an approximately 164 unit affordable senior housing facility on the development site, for which they are seeking financial assistance from the City in the form of land donation and Tax Increment Financing (TIF) assistance. Project Description The Developer is proposing the construction of an affordable senior assisted living facility of approximately 164 total units. The project will include a mix of service types with approximately 140 units set aside for assisted living, and 24 units set aside for special needs residents. The one-bedroom units for the assisted living component will be approximately 585 square feet, while the one-bedroom special needs units will be approximately 450 square feet. The Developer will be seeking MHFA tax credit assistance, which will require the development to maintain the units as available for persons of low and moderate income. Additionally, as a result of the use of tax credits the project will receive a 4d property tax classification, which will result in a lower tax capacity and subsequently a lower property tax expense. The Developer is anticipating construction beginning in 2016, with first occupancy occurring in 2017, and the project achieving full occupancy in 2018. Assistance Request The Developer is seeking assistance from the City in two potential forms: Land Contribution: - The Developer is seeking the contribution of the land from the City for the development of the site. This land contribution is projected to have an anticipated value of approximately $1.5 million based on the City's original purchase price for the property. The Developer has agreed to accept the land contribution as a loan from the City, secured by a subordinate second mortgage on the project The proposed loan would be made at an interest rate of 0%, and repayment of the principal amount of the loan ($1.5M) would occur on a cash available basis upon sale of the property by the Developer. This anticipated sale is expected to occur at a period of fifteen or more years from project initiation, The City would be able to receive repayment on the loan from 50% of the residual proceeds available after repayment of the first mortgage outstanding and all closing costs, up to the basis of $1.5M, Based on the proposed terms the City would be eligible to be repaid the $1,5M value of its land contribution to the project, pending the future performance of the project. Pay-As-You-Go TIF Assistance: - The Developer is seeking Tax Increment Financing (TIF) assistance from the City through the creation of an affordable housing TIF District on the development site. The creation of the TIF District would allow them to seek TIF assistance from the City in a principal amount of $1.5M, which they have indicated is necessary to achieve project financing through the FHA Section 232 Lean Program, The Developer has indicated the additional project revenue provided by the TIF assistance is necessary to them qualifying under the strict underwriting standards required by the FHA Section 232 program. Additionally, the Developer has preliminarily agreed to the private acquisition of two adjacent residential properties necessary to complete the assembly of the development site. The preliminary estimate of the cost associated with acquiring these sites is approximately $300,000. In total the anticipated principal amount of the TIF assistance is $1,800,000, subject to TIF revenue capacity. Since the Developer is seeking the reimbursement of these costs on a pay-as-you-go basis, they will be responsible for funding these costs up-front and will receive TIF assistance over time to reimburse them for the principal amount of the assistance, plus interest carrying cost on these expenditures. The City would be obligated to reimburse the Developer from a percentage of annually available TIF revenue (save any City Administrative retainage), up to the point at which the pay-as-you-go note was repaid. The City would not be obligated to make any reimbursement payments in excess of the percentage of the annually generated TIF Revenue, as defined in a development agreement. The structure of this TIF assistance on a pay-as-you-go basis puts all potential repayment risk and future TIF District performance on the Developer and does not obligate the City to make any additional payments in the event that future TIE revenue is less than currently projected. Conversely, in the event that TIE revenue is greater than projected, the pay-as-you-go note would be repaid early and the District could be decertified and the property placed back on the general property tax rolls. Need for Assistance Request Evaluating affordable housing tax credit projects requires a bit of a unique perspective in evaluating the need for potential public financial assistance. Given the nature of these projects, and the significant transaction fees incurred as part of the tax credit process and the additional third-party equity the tax credits provide, we typically evaluate the need for assistance on the basis of project feasibility with and without the requested TIF assistance. In these cases we evaluate project feasibility on the basis of the project's ability to secure private financing for project costs not funded by tax credit equity. The Developer provided us with a detailed listing of the sources and uses for the project, a 15-year operating pro forma, and a breakout of anticipated operating revenues and expenses. Additionally, the Developer provided a fact sheet detailing the underwriting standards required by the FHA, which are necessary to access project financing under the FHA Section 232 Lean Program. The key underwriting standard required by the FHA program was a minimum Debt-service Coverage Ratio (DCR) of 1,45x, The DCR is the amount by which projected net operating income (after property taxes) exceeds the projected annual debt-service amount. In the underwriting of financing through this program, the Developer has to illustrate the net operating income of the project exceeds the anticipated debt-service amount by a factor of 1.45 times. In order to illustrate the need for assistance the Developer prepared a pro forma based on the funding of approximately $1.5M in project costs from borrowed funds (without assistance) and from a TIF pay-go-note with a principal amount of $1 .5M (with assistance). The impact of the requested assistance was then illustrated through the available coverage ratio in each pro forma scenario. The two pro forma scenarios both included the land contribution as asource of funding, so the need for TIF assistance is illustrated after the benefit of the land contribution. The without assistance scenario assumed the Developer would be responsible for financing the approximately $1.5M in requested TIF assistance from private financing sources. The resulting increase in annual debt service, due to the higher amount of borrowed funds, resulted in a stabilized debt coverage ratio of 1.35x in year 2 of the project. This DCR, after factoring in the benefit of the land contribution, still falls below the amount necessary to achieve financing through the FHA Section 232 Lean program. The with assistance scenario prepared by the Developer, which resulted in a lowering of the privately financed amount by the $1.5M in TIF assistance, resulted in a stabilized debt coverage ratio of 1.46x in year 2 of the project. This DCR, after factoring in both the benefit from the land contribution and the $1.5M in pay-as-you-go TIF assistance, results in a level capable of securing private financing. As a result, using the DCR and the ability to secure private financing as a measure of project feasibility, we can determine that the project would be unlikely to proceed but-for the requested TIF assistance. Preliminary TIF Revenue Assumptions The assumptions outlined below were used in the creation of the preliminary TIF revenue projections for the proposed TIF District. The revenue assumptions are based on project information provided by the Hennepin County Assessor who provided a post-development market value projection. Base Value: The assumed base value of the property is anticipated to be $1,500,000 based on the City's original purchase price. The base tax capacity utilized in the calculation of the TIF revenue stream is $11,250 based on the application of the 4d affordable housing rental classification rate of 0.75% to the frozen base value assumption. Per Unit Value: $90,000 - this per-unit market value assumption is based on the total value estimate for the development of $14,760,000 provided by the Hennepin County Assessor. The value assumption is reflective of the total project and includes both land and building value. The total incremental growth attributable to the proposed 164 unit development is $13,260,000. Rental Classification Rate: - We have assumed the project is classified at the 4d affordable housing rental rate of 0.75%. First Receipt of TIF: 2018— We have assumed the TIF plan will receive first increment in 2018, as the first year of increment based on 80% project completion in 2016. Conversely, the projections could be altered to delay first receipt of TIF to 2019 based on full project completion in 2017. Inflation: These revenue projections do not include a market value inflation assumption. TIF ElialbIe Tax Rate Pay 2015: City:71.256% County:46.398% School District:27.156% Miscellaneous:10.041% Total Tax Rate:154.851% City Administrative Percentage: - We have assumed a total City retainage of 10% for administrative purposes. The total gross amount of increment captured over the life of the TIE District is $395,553. Pay-As-You-Go Note Amount: - $1,800,000 based on a note date of 06/30/2016 and a 5% interest rate. In order to repay a pay-as-you-go note of $1,800,000 approximately 90% of the proposed annual increment would need to be used for note repayment, with the anticipated final note payment occurring with the second half payment in 2042, the second to last year of the District. Given the assumptions outlined above, a 90% TIE capture would be capable of repaying a $1,800,000 over the life of the TIE District. Ii Assumptions Report City of Brooklyn Center, Minnesota Tax Increment Financing (Housing) District No. x Tax Credit Housing Project -40 Classification TIF Projections - $14.76M EMV Assumption Type of Tax Increment Financing District Housing Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 05/30/15 Decertification Date 12/31/43 (26 Years of Increment) 2014/2015 Base Estimated Market Value ' $1,500,000 Original Net Tax Capacity $11,250 Assessment/Collection Year 2016/2017 2017/2018 201812019 2019/2020 Base Estimated Market Value $1,500,000 $1,500,000 $1,500,000 $1,500,000 Estimated Increase in Value - New Construction 0 10,308,000 13,260,000 13,260,000 Total Estimated Market Value 1,500,000 11,808,000 14,760,000 14,760,000 Total Net Tax Capacity $11,250 $88,560 $110,700 $110,700 City of Brooklyn Center 71.256% Hennepin County 46.398% ISD #279 27.156% Other 10.041% Local Tax Capacity Rate 154.851% 2014/2015 Fiscal Disparities Contribution From TIF District 0.0000% Administrative Retainage Percent (maximum = 10%) 10.00% Pooling Percent 0.00% Bonds Note (Pay-As-You-Go) Bonds Dated NA Note Dated 06/30/16 Bond Rate NA Note Rate 5.00% Bond Amount NA Note Amount $1,800,000 Present Value Date & Rate 06/30/16 5.00% PV Amount $2,051,788 Notes Projections assume no future changes to classification rates and current tax rates remain constant. Projections are based on assumed post-development value of $14.76M Value assumptions based on information provided by Hennepin County Value assumption used is reflective of combined building and land value. Base value is based on assumed $1.5M market value based on City purchase price, and no inflation is assumed. Projections assume commencment of construction in 2016, with project completion in 2017, Projections assume a 4D class rate 0 G) E 0 0 •0 0I- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0LU 0 (Do 0 0 0 0 0 0 0 00 0 00 0 00 0 0 0 0 0 0 0 (DI(01 - 0) Cl0) (i) 5t5O5CX5CC5O5CCOCOCOCOCOCOCOCOCOCOCOCOCO CO Ioil (1)0 CO CO CO CO CO CO (') C') CO CO CO CO C') CO C') CO CO CO CO CO CO CO CO CO Cl)r r LU'LQIz> - < 0)0)t- r- - t- r - COI 0 00 CO LU LU LU LU (0U)U)U)(0(0(0U)LULULULU(0(0U)LU LOU) LU U) LU CO LO 0)LU LU. 03 °- U) IC) LU LU LU LU U) LU LU U) U) L6 LU LU U) LU U) LU L6 U) IC) LU U)r r r r r rr r r rrrrrrrrrrrrrrrE j 8 o 00 ' LU LU LU LULU LU LU LU LU LULU LU LU U) LU LU LULULULULULULU LU LU 0)0 -- CO OCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCOCO LU2 H E(1)- LU LU U) LU U) LU LU LU LU LU LU LU U) LU LU LU LOU) U) LU LU LU LU LU LUr r r e r e LU(3) (J)Z 00 - t C ct t c COLULULULULULULULULULULULULULULULULULULULULULULULULU CO'r LU LU U) LU U) LU LU LU U) LU LU LU LU LU LU LU IC) U) U) LU LU LU LU LU LU C'i - o("a 00LU0)0 Dl >< - - 0) 0) ((3 0) 0)M 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0)1(0 oF- a)oilE— V) LO (0 N r r r - v-rrrrrrrrrrr rrrrrrrr r <00 COI > LU LU U) LU LOU) LU U) LU LU LU LU U) LU LU LU LU LU U) LU U) LU LU U) LU 1i LU U) U) woo 03 CO CO CO CO CO CO CO (0 0) CO WOO CO 0) CO CO CO CO woo CO CO woo 0) cu 4 c1- H (0 r r r r r rrrrrrrr 0000000000000000000000000 000 - LU LU U) U) U) LU LOU) LU LU U) LU LU LU LU LU U) U) U) LU U) LU U) LU LU (0 1- 0 06 0) 0) 0) 06 0) 0) 06 06 0) 0) 0) 0) 0) 0) 06 0) 0) 06 (I 0) 0) 0) 6 H (a I- 0) 0 (3) 0) 0) 0 0) 0) 0) (Y) 0) 0) 0) (3) (3) (3) 0) 0) 0) (Y) (3) 0) 0)(7) 0) 0Q. 0)0)0)03 co:0ZO 0000,000000000000000000000000 LU LI) LU LU U) U) (0 LULU LU U) LU LU LU U) LU LU LU LU U) U) U) LU U) LU LU LU LU - )C'INC v- r(0 3 : rrrrrrrr r t- r ,- r- - x- r r ,- r t- r r r- r r r t-rrrrrrrr rr rrrrr r r r r r r r 6 .j -0)coOZj CL 0000000000000000000000000000 U)LU (0 000000000000000000000 0000 E x C'. LU N N N N N N N N N N N N N N N N N N N N N N N N N (0 - (0 3 - CO 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z 0 i LUI '0000 000 00 00 0 00000 00 0000 0000 00000000000000000000000000000 a 85 QQDQ0CQ0C00C0Q000Qq 0 O 000 ©° ..-•t-•-0)0) _2 _00000C)00O0000(D0OO00000OQ 0 °O°00 (0 (0(0 (0 CC) (0 (0 (0 (0 (0 (0(0(0(0(0 (0 (0(0(0(0 (0 (0 (0 (0 (00LCNNNNNNNNNNNNNNNNNNNNNNNNN o (0 H U.. U)(0 0 00)1.2 o I.) 0 _ç -C'I N UI (N (N C'J ('4 (N ('-I ('4 N IN UI N ('-I (N ('4 ('(('4 N N N..o C (I) C -LU r r - r r r r r r rrv *rrrrrrrrrrrrr X LL: OF-l-1 PROJECTED PAY-AS-YOU-GO-NOTE REPORT City of Brooklyn Center, Minnesota Tax Increment Financing (Housing) District No. x Tax Credit Housing Project - 4D Classification TIF Projections - $14.76M EMV Assumption Note Date:06/30/16 Note Rate:5.00% Amount:$1,800,000 Cumulative Unpaid Semi-Annual Loan Interest Accrued Net Balance Date Principal Interest P & I Due Interest Revenue Outstanding (1) '(2)(3) '(4) '(5)(6)(7) '(7) 1,800,000.00 02/01/17 0.00 0.00 0.00 52,750.00 52,750.00 0.00 1,800,000.00 08/01/17 0.00 0.00 0.00 97,750.00 97,750.00 0.00 1,800,000.00 02101/18 0.00 0.00 0.00 142,750.00 142,750.00 0.00 1,800,000.00 08/01118 0.00 53,678.00 53,678.00 187,750.00 134,072.00 53,678.00 1,800,000.00 02/01119 0.00 53,678.00 53,678.00 179,072.00 125,394.00 53,678.00 1,800,000.00 08/01/19 0.00 69,050.00 69,050.00 170,394.00 101,344.00 69,050.00 1,800,000.00 02/01/20 0.00 69,050.00 69,050.00 146,344.00 77,294.00 69,050.00 1,800,000.00 08/01/20 0.00 69,050.00 69,050.00 122,294.00 53,244.00 69,050.00 1,800,000.00 02/01/21 0.00 69,050.00 69,050.00 98,244.00 29,194.00 69,050.00 1,800,000.00 08/01/21 0.00 69,050.00 69,050.00 74,194.00 5,144.00 69,050.00 1,800,000.00 02/01/22 18,906.00 50,144.00 69,050.00 50,144.00 0.00 69,050.00 1,781,094.00 08/01/22 24,522.65 44,527.35 69,050.00 44,527.35 0.00 69,050.00 1,756,571.35 02/01/23 25,135.72 43,914.28 69,050.00 43,914.28 0.00 69,050.00 1,731,435.63 08/01/23 25,764.11 43,285.89 69,050.00 43,285.89 0.00 69,050.00 1,705,671.52 02/01/24 26,408.21 42,641.79 69,050.00 42,641.79 0.00 69,050.00 1,679,263.31 08/01124 27,068.42 41,981.58 69,050.00 41,981.58 0.00 69,050.00 1,652,194.89 02/01/25 27,745.13 41,304.87 69,050.00 41,304.87 0.00 69,050.00 1,624,449.76 08/01/25 28,438.76 40,611.24 69,050.00 40,611.24 0.00 69,050.00 1,596,011.00 02/01/26 29,149.72 39,900.28 69,050.00 39,900.28 0.00 69,050.00 1,566,861.28 08/01126 29,878.47 39,171.53 69,050.00 39,171.53 0.00 69,050.00 1,536,982.81 02101/27 30,625.43 38,424.57 69,050.00 38,424.57 0.00 69,050.00 1,506,357.38 08101/27 31,391.07 37,658.93 69,050.00 37,658.93 0.00 69,050.00 1,474,966.31 02/01/28 32,175.84 36,874.16 69,050.00 36,874.16 0.00 69,050.00 1,442,790.47 08/01/28 32,980.24 36,069.76 69,050.00 36,069.76 0.00 69,050.00 1,409,810.23 02/01/29 33,804.74 35,245.26 69,050.00 35,245.26 0.00 69,050.00 1,376,005.49 08/01129 34,649.86 34,400.14 69,050.00 34,400.14 0.00 69,050.00 1,341,355.63 02/01/30 35,516.11 33,533.89 69,050.00 33,533.89 0.00 69,050.00 1,305,839.52 08/01/30 36,404.01 32,645.99 69,050.00 32,645.99 0.00 69,050.00 1,269,435.51 02/01131 37,314.11 31,735.89 69,050.00 31,735.89 0.00 69,050.00 1,232,121.40 08/01/31 38,246.96 30,803.04 69,050.00 30,803.04 0.00 69,050.00 1,193,874.44 02/01/32 39,203.14 29,846.86 69,050.00 29,846.86 0.00 69,050.00 1,154,671.30 08/01/32 40,183.22 28,866.78 69,050.00 28,866.78 0.00 69,050.00 1,114,488.08 02/01/33 41,187.80 27,862.20 69,050.00 27,862.20 0.00 69,050.00 1,073,300.28 08/01133 42,217.49 26,832.51 69,050.00 26,832.51 0.00 69,050.00 1,031,082.79 02/01/34 43,272.93 25,777.07 69,050.00 25,777.07 0.00 69,050.00 987,809.86 08/01134 44,354.75 24,695.25 69,050.00 24,695.25 0.00 69,050.00 943,455.11 02/01/35 45,463.62 23,586.38 69,050.00 23,586.38 0.00 69,050.00 897,991.49 08/01/35 46,600.21 22,449.79 69,050.00 22,449.79 0.00 69,050.00 851,391.28 02101/36 47,765.22 21,284.78 69,050.00 21,284.78 0.00 69,050.00 803,626.06 08/01/36 48,959.35 20,090.65 69,050.00 20,090.65 0.00 69,050.00 754,666.71 02/01/37 50,183.33 18,866.67 69,050.00 18,866.67 0.00 69,050.00 704,483.38 08/01/37 51,437.92 17,612.08 69,050.00 17,612.08 0.00 69,050.00 653,045.46 02/01/38 52,723.86 16,326.14 69,050.00 16,326.14 0.00 69,050.00 600,321.60 08/01138 54,041.96 15,008.04 69,650.00 15,008.04 0.00 69,050.00 546,279.64 02101/39 55,393.01 13,656.99 69,050.00 13,656.99 0.00 69,050.00 490,886.63 08/01/39 56,777.83 12,272.17 69,050.00 12,272.17 0.00 69,050.00 434,108.80 02/01/40 58,197.28 10,852.72 69,050.00 10,852.72 0.00 69,050.00 375,911.52 08/01/40 59,652.21 9,397.79 69,050.00 9,397.79 0.00 69,050.00 316,259.31 02101/41 61,143.52 7,906.48 69,050.00 7,906.48 0.00 69,050.00 255,115.79 08/01/41 62,672.11 6,377.89 69,050.00 6,377.89 0.00 69,050.00 192,443.68 02/01/42 64,238.91 4,811.09 69,050.00 4,811.09 0.00 69,050.00 128,204.77 08/01142 65,844.88 3,205.12 69,050.00 3,205.12 0.00 69,050.00 62,359.89 02/01/43 62,359.89 1,559.00 63,918.89 1,559.00 0.00 63,918.89 0.00 08/01/43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 02/01/44 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1,800,000 $1,616,624.89 $3,416,624.89 $3,416,624.89 Surplus Tax Increment 143,231.11 Total Net Revenue $3,559,856.00 City of Brooklyn Center, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Housing) District Tax Credit Housing Project November 9 - Public Hearing Date PROPOSED SCHEDULE OF EVENTS Draft 8/3115 Date Event Responsible Party August - September Evaluate developer information and creation of TIF Plan City, Springsted, Kennedy & Graven Monday City Council - Project introduction and adoption of resolution calling for City, Springsted, September 14, 2015 public hearing on November 9, 2015 Kennedy & Graven Friday September 25, 2015 Written notice to County Commissioners - creation of Housing District Springsted (At least 30 days before the publication of the notice for the public hearing) Prior to Thursday County and School District receive impact letters and draft TIF plan.Springsted October 8, 2015 (At least 30 days prior to public hearing) Thursday October 22, 2015 Planning Commission reviews TIF and adopts resolution City, Springsted, Kennedy & Graven Thursday October 29, 2015 Publication of notice of public hearing in Sunpost Newspaper City, Springsted, Deadline: October 22 (10-30 days prior to public hearing.)Kennedy & Graven Monday City Council holds public City, Springsted, November 9, 2015 hearing and adopts resolution approving TIE Plan and TIE District Kennedy & Graven Monday Economic Development Authority City, Springsted, November 9, 2015 adopts resolution approving TIE Plan and TIE District Kennedy & Following City Council Graven After November 9 Notification to County and State of TIF Plan.Springsted City of Brooklyn Center, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Housing) District Tax Credit Housing Project October 26 — Public Hearing Date PROPOSED SCHEDULE OF EVENTS Draft 8/3115 Date Event Responsible Party August - September Evaluate developer information and creation of TIF Plan City, Springsted, Kennedy & Graven Monday August 24, 2015 City Council - Project introduction and adoption of resolution calling for City, Springsted, public hearing on October 26, 2015 Kennedy & Graven Friday September 11, 2015 Written notice to County Commissioners - creation of Housing District Springsted (At least 30 days before the publication of the notice for the public hearing) Prior to Friday County and School District receive impact letters and draft TIF plan.Springsted September 25, 2015 (At least 30 days prior to public hearing) Thursday October 8, 2015 Planning Commission reviews TIE and adopts resolution City, Springsted, Kennedy & Graven Thursday October 15, 2015 Publication of notice of public hearing in Sunpost Newspaper City, Springsted, Deadline: October 8 (10-30 days prior to public hearing.)Kennedy & Graven Monday City Council holds public City, Springsted, October 26, 2015 hearing and adopts resolution approving TIE Plan and TIF District Kennedy & Graven Monday Economic Development Authority City, Springsted, October 26, 2015 adopts resolution approving TIE Plan and TIF District Kennedy & Following City Council Graven After October 26 Notification to County and State of TIF Plan.Springsted iJ i ak'i LU ak'A (0) 1I ,1SJ'A1 DATE: March 23, 2015 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development SUBJECT: Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC Regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard, and 6101 Brooklyn Boulevard.. Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of a Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC Regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard, and 6101 Brooklyn Boulevard. Background: On March 9, 2015, the City Council/EDA Work Session included a discussion on the potential sales and redevelopment of approximately 5.5 acres of EDA owned properties located at 6121, 6107, and 6101 Brooklyn Boulevard for an affordable assisted care senior apartment development consisting of the following: • four story apartment building with 140 one bedroom senior assisted care units and • one story building with 24 studio units offering specialized assisted care for seniors The City Council/EDA reviewed a conceptual plan overlaid on an aerial photograph of the site and a narrative provided by SCA Properties and Evergreen Real Estate Development Corporation describing their plans to develop and operate an affordable assisted senior housing project using Low Income Housing Tax Credits and Medicaid Elderly Waiver reimbursements.. The consensus of the City Council/EDA was to find that the conceptual development illustrated by SCA Properties was consistent with the EDA's development vision for this site and that Staff was directed to proceed with negotiating a Letter of Intent with SCA Properties for the development of an affordable assisted care senior housing project. Attached for your reference is a copy of the staff memorandum presented at that March 9, 2015 Work Session. Letter of Intent and Exclusive Negotiating Agreement: The Letter of Intent identifies the proposed senior housing project, provides a purchase price of $1,763,398 (the EDA's acquisition cost of the 3 properties) that is proposed to be paid from tax increment revenue generated from the proposed development, and includes the following schedule: Lylission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of fife for all people and preseives the publicirust ia iiY U*1 LTA I ak'iEi) 1flh1WAJ Exclusive Negotiating Period and Negotiations of Contract of Sale, a period of 90 days during which a detailed Contract of Sale is negotiated and executed. During this time the EDA agrees to refrain from and discontinue any existing marketing or negotiations with others concerning the sale of the Property. (March—June) Feasibility Period commences upon execution of the Contract of Sale and provides the Developer with 120 days to investigate the feasibility of developing the Property, such as environmental studies and soil tests and undertaking studies to determine the feasibility of the project such as obtaining the necessary financing and development approvals. (June - October) Settlement Period occurs within 180 days from the date the Purchaser/Developer is in receipt of the necessary approvals and financing commitments to begin construction, but not later than 1. months after the execution of the Contract of Sale. (June, 2015 - Sept, 2016). The Letter of Intent identified two contingencies relating to the EDA' s sale of the property: 1.Approval by the Seller/FDA of the sale of the Property after a public hearing in accordance with the applicable law.2.The creation of a tax increment financing district pursuant to Minnesota Statutes. Budget Issues: These FDA properties were acquired with funds from the existing TIF 3 Housing Account. Additionally, TIF District 3 is providing the funds for the demolition of the site and the planned boulevard restoration improvements, as identified in the Brooklyn Boulevard Corridor Study. The creation of a new Tax Increment Housing District seeks to accomplish the following: 1.Reimbursement of the TIP 3 Housing Account to enable the EDA to invest in future affordable housing projects and other eligible housing activities.2.Provide funds for the future acquisition of the two adjacent single family residences on 61 " Avenue at such time as these property owners decide to sell. 3. Provide a budget for enhancements to this project should additional Tax Increment become available. The Developer is structuring the financing of this Senior Housing Development with the use of Low Income Housing Tax Credits and has referenced a similar project that they are currently pursuing in West St. Paul. However, the West St. Paul project is located within a HUD Qualified Census. Tract that provides additional tax credits that have a value of approximately of $2,000,000. During the Negotiations and Feasibility Periods the Developer and Staff will be considering options to bridge this financial gap. Strategic Priorities: o Focused Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life for all people and preserves (lie public trust Commissioner introduced the following resolution and moved its adoption: FDA RESOLUTION NO. RESOLUTION APPROVING A LETTER OF INTENT TO PURCHASE WITH SCA PROPERTIES, LLC REGARDING 6121 BROOKLYN BOULEVARD, 6107 BROOKLYN BOULEVARD AND 6101 BROOKLYN BOULEVARD WHEREAS, SCA Properties, LLC (the "Developer") has proposed to purchase from the Economic Development Authority of Brooklyn Center, Minnesota (the "EDA"), 3 parcels of land located at 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn Boulevard in the City of Brooklyn Center, Minnesota (Property) for the purpose of constructing and operating thereon an approximately 164-unit senior assisted living facility consisting of a 4-story wing with 140 one bedroom units and 1-story wing with 24 studio apartment units offering specialized care services (the "Project"). WHEREAS, in connection with the proposed purchase of the Property, the Developer has requested that the EDA enter into a Letter of Intent to Purchase (the "LOP') and the EDA has caused a form of the LOT to prepared for consideration by the Board of Commissioners of the FDA (the "Board"); and WHEREAS, the LOT reflects that it is subject to a definitive purchase agreement between the Developer and the FDA and that sale of the Property is subject to approval by the Board after a public hearing in accordance with applicable law. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1.The LOT as presented to the Board is hereby in all respects approved, in substantially the form submitted, and the President and the Executive Director are hereby authorized and directed to execute the LOT on behalf of the EDA and to carry out, on behalf of the EDA, the FDA's obligations thereunder, 2.The approval hereby given to the LOl includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the FDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. March 23,_2015 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner 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. SCA Properties, LLC 4099 Tainiaini Trail North Suite 200 Naples, Florida 34103 LETTER OF INTENT TO PURCHASE This letter is intended to outline the general terms upon which SCA Properties, LLC or its affiliated Assignee (the "Purchase?') would propose to purchase those certain parcels of land described below from the Economic Development Authority of Brooklyn Center, Minnesota (the "Seller"), subject to the following terms and conditions: 1.çpçy - The Purchaser intends to buy from the Seller 3 parcels of land located at 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn Boulevard in the City of Brooklyn Center, Minnesota ("Property"). The combined parcels are approximately 5 gross acres in size and are currently zoned commercial and commercial P1JD. The Purchaser represents that it is proposing to acquire the Property for the purpose of constructing and operating thereon an approximately 164-unit senior assisted living facility consisting of a 4-story wing with 140 one bedroom units, and 1-story wing with 24 studio apartment 'units offering specialized care services. 2.Purchase Price - $1,763,398.00. The Purchase Price will be paid at Settlement by payment of $1.00 and the delivery of a promissory note (the "Purchase Price Note") payable from tax increment revenues generated by the Property, to the extent approved by the Seller and the City of Brooklyn Center, Minnesota in accordance with applicable law, and secured in accordance with terms to be determined by the Seller and the Purchaser. 3.Feasibility Period - This period will commence upon lull execution of a Contract of Sale and will terminate one hundred twenty (120) days thereafter. During this period, the Purchaser shall investigate the feasibility of developing the Property as described including, but not limited to, performing tests such as environmental studies, soil tests, etc., and undertaking other studies to determine the feasibility of development such as exploring the likelihood of obtaining the necessary financing and/or development, planning and zoning approvals. 4.Settlement - Settlement shall occur within one hundred eighty (180) days from the time Purchaser is in receipt of the necessary approvals and financing commitments to begin construction but not later than fifteen (15) months after execution of the Contract of Sale. 5.Settlement and Other Costs - The cost of transfer and recordation taxes shall be paid by the Purchaser. All other costs of settlement shall also be paid by the Purchaser, except that costs such as property taxes and assessments, that are typically prorated, will be prorated between Purchaser and Seller. 6.Title - At closing, the Seller shall deliver to the Purchaser its fee simple interest in the Property, subject only to such permitted exceptions as Purchaser's counsel shall approve or which are specified in the Contract of Sale. The Purchaser, at its own expense, will obtain an 456434v5 SJS BR291-353 owner's form ALTA Title Insurance Policy, insuring the purchasing entity's fee simple interest in the Land, 7.Documentation - Within seven (7) days of signing the Letter of Intent, the Seller will give the Purchaser copies of any relevant material in its possession relating to the Property, including but not limited to title reports, soils reports, environmental studies, engineering studies and agreements with governmental authorities. 8.Right of Entry - With 24 hours prior notice, the Purchaser at its own expense and with no liability to the Seller will have the right of entry onto the Property to conduct architectural, engineering and other tests, survey and studies. Purchaser shall restore the Property to its previous condition at the conclusion of any test. Purchaser agrees to indemnify Seller against any liens, claims, losses or damage occasioned by Purchaser's exercise of its right to enter and work upon the Property; Purchaser agrees to provide Seller with a copy of any report prepared as a result of such examination or test, upon request by Seller. 9.Brokerage Commissions - Purchaser and Seller agree that the only real estate broker involved in this transaction is Minnesota Brokerage Group whose agent is Jefferson Patterson who represents the Purchaser. Purchaser shall be responsible for paying brokers any and all commissions due. 10.Exclusive Negotiating Period - Upon execution of this Letter of Intent by all parties, Seller grants to Purchaser an Exclusive Negotiating Period of ninety (90) days to conclude a Contract of Sale. Seller and its agents shall refrain from dnd discontinue any existing marketing or negotiations with others concerning the sale of the Property unless otherwise approved by the Purchaser in writing. 11.Contract of Sale - The major provisions of the Contract of Sale are contained• within this Letter. Purchaser and Seller agree that a detailed Contract of Sale will be negotiated and executed within ninety (90) days of the signing of this Letter of Intent. 12.Assignability - This Letter and the Contract is fully assignable to a partnership or LLC whose general partners or managing member will include the Purchaser. 13.. Contingencies - The parties understand that the sale of the Property is conditioned, among other things, upon (i) approval by the Seller of the sale of the Property after a public hearing in accordance with applicable law and (ii) the creation of a tax increment financing district pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 for the Property after a public hearing in accordance with applicable law. The parties will negotiate towards a definitive tax increment financing development agreement setting forth the terms and conditions of tax increment financing assistance to be provided to the Purchaser. The Purchaser will cooperate with the Seller's review and analysis of providing tax increment financing assistance and will provide to the Seller all documents and information requested by the Seller in connection with that effort. 14. Expiration - This Letter of Intent will be withdrawn if not executed by the close of business on March 25, 2015. 4564345 SJS 5R291.353 Upon execution of this nonbinding Letter of Intent, the parties will endeavor to negotiate in good faith and execute a formal Contract of Sale and tax increment financing development agreement containing customary terms and conditions. Until such time, however, except as snif11v nrnvitlM above -nothing contained in this Letter of Intent shall be binding on or enforceable by either party. Agreed, understood and accepted this day of 2015. PURCHASER: SCA Pro ies , LLC B Garrett G. Carlson, Sr Title: Manager SELLER: Economic Development Authority of the City of Brooklyn Center, Minnesota By: Title: President By: Title: Executive Director 456434v5 SJS BR291-353 bY4 I Y1 (II 1I II1SJA S1IJ[iJ I 'LI) 1 C'I JJEi 1OAI DATE: March 9, 2015 TO: Curt Boganey, City Manager FROM: Gary Bitel, Director of Business & Development SUBJECT: Discussion on Potential Sales and Development of Economic Development Authority (EDA) Properties within the Brooklyn Boulevard Corridor (6101, 6107, and 6121 Brooklyn Boulevard Recommendation: It is recommended that the EDA consider providing direction to staff regarding the potential sales and redevelopment of 6121, 6107, and 6101 Brooklyn Boulevard as an affordable assisted care senior apartment development. Background: The real estate agent representing SCA Properties, LLC, contacted Told Development, the developer that was marketing the redevelopment of the EDA's 57t" Logan Site, regarding the possibilities of providing a 4-5 acre site for a senior housing project. Upon examination of this site, SCA Properties, LLC detennined that the triangular configuration of the property and the Iodation of the Excel Energy transmission line were restricting factors that disqualified the 57th & Logan Site.as a potential site. Continued discussions relating to developer's site search criteria lead to an alternative location being suggested for the developer's consideration. The EDA properties along Brooklyn Boulevard comprise approximately 5.5 acres between 61st Ave. and Ewing Ave. This site, which included the former Cars with Heart auto dealership, had been identified during the Brooklyn Boulevard Corridor Study as a preferred land use for senior housing oppothmities. The developer's review of the location and configuration of this area, resulted in the developer providing the attached sketch which illustrates the construction of a four story apartment building providing 140 one bedroom senior assisted care units and a one story building providing 24 studio units offering specialized assisted care for seniors.. Attached are the following items to assist in your consideration of this potential senior housing project: A narrative provided by the SCA properties and Evergreen Real Estate Development Corporation on their plans to develop and operated an affordable assisted senior project using Low Income Housing Tax Credits and Medicaid Elderly Waiver reimbursements. • copy of their preliminary market report • sketch illustrating their initial development concept overlaid on an aerial photo of this area. Mission: Ensuring an attractive, clean, safe, inclusive community that enhancesences time quality of life for ailpeople and preserves the public trust IY4 I (I) 1I 1IJYA EI1IJ[iJ I !'LI) ti C4 DE'1 (IhI Alternate sketches prepared by the project architect relating to expanding the surface parking lot and removing the underground parking as a cost saving measure.. A building elevation illustrating the architectural features of the 4 story apartment building. Additionally, the following site related items have been provided: This portion of the Brooklyn Boulevard Corridor Study, A senior housing project located along France Ave. in Edina that was considered by the Planning Commission in their recommendation of a preferred land use. A '/2 section map illustrating the properties located between 61St Ave. and Ewing Ave. Policy Issues: Does the EDA believe the conceptual development illustrated by SCA Properties is consistent with the EDA's development vision for this site? Does the FDA wish to proceed with negotiating a Letter of intent with SCA Properties for the development of an affordable assisted care senior housing project? Strategic Priorities: e Focused Redevelopment Z'Iissioii: Ensuring an attractive, clean, safe, inclusive coinnuinhty that enhances the quality of life for all people and pleseives the public trust - 4 - - [ F I'6M i r I :: ';T" \\\ \' - . Jr1LTii t\ui - - , [ 4 U It -. \7' r I) 'I K IF -- -1-- r" •'- -' r '-'- ' i.'rd ./ I - LLJ LL- N IJ fl''. ; I iX ii Ii j4 1: •) 1* f it . '•r A : I : J _..L I. ,_Is s ,/%/(144, I dtp - - 12111) llLT'VET For Parcel 31o2-24-11-aD7o AT-B: TorrenE Met' Scale: 1" - 100 ft. Print Date: 31412015 Owner 5unrie EcLna Astd Lvnc Lic Market 74314O0NrnTle: Total: IA . "th j L Parcel 7128 Franre Ave S Address: Edina, MN 55436 Properly ApartmentType: Home- Ncn -Hoeteastead: Parcel 4.8 acres Area: 182,154 sq, Tax 126,213.06 Total: (Payable: 2014) Sale Price: n-p co.pi:n ofd frni VU-= &d is furni1Ed -2 .'.th nc Sale 'st3n orv.!rrri1 exp, eEEe1 Date:LL.• , -•j r 1 irnplid iruiir flnE r Ely priCulEr prpcEE, r'Erc .n:bi'i, or tr CCUEy Efl con1tEr.EEE ITI1E jrfrrrcn s1cwl. Sale I Code: copyR..c-HTeHet'1NEPINC3ufiY2c1 J Thinl Green! -ì -- I - - __- II II — LOUT i AllU; to coll t --- -- I - --- r - ------- - C I -:--- •-; -- S I I )-< _--- ' ' - I 1 \1 I \ 0L0 01 - 0 o 6 '-- RUM 9 U) 5' g di " I 0 'S 0 0 C 0 0 00 0 0 7, C)- U. j) ci U U IT- BROOKLYN CENTER AFFORDABLE ASSISTED LIVING PROJECT DESCRIPTION SCA Properties LLC and Evergreen Real Estate Development Corporation propose the development of The Sanctuary at Brooklyn Center, a 164 unit affordable assisted living community to be built on approximately 5 acres of land in Brooklyn Center, Minnesota. The property is located on Brooklyn Blvd at the intersection of Vd Ave N. This high traffic location is perfect for this type of project because it provides visibility and easy access to the community the property will serve. Affordable assisted living uses Low Income Housing Tax Credits (LIHTC) to help finance the building and Medicaid Elderly Waiver reimbursements through the Minnesota Department of Human Services to fund needed services. It is designed to serve income-eligible individuals who need help with a host of Activities of Daily Living (ADL) and can no longer live on their own. The maximum income currently allowed under the LIBTC program for the Twin Cities metropolitan area for a single individual is $34,850. The current maximum income for the Medicaid Waiver program is about $26,500. The Waiver program also has an asset cap so some individuals may come in and "spend down" to the asset cap before being eligible for services reimbursement. The market area for this location contains a significant number of people that are in need of assisted living services yet do not have sufficient incomes to afford to move to a market rate community. A market snapshot of the area, which follows this description, shows that the area preliminarily delineated-as the market contains over 8,200 people over the age.of 75 and over 2,300 households with at least one individual 75 years of age or older with a household income less than $25,000 (40% of households over age 75). Further, the area contains 6,160 individuals over theage of 65 with at least one disability including ambulatory, self care, independent living, hearing, vision or cognitive difficulties (37.5% of the population over the age of 65). Detailed information on this is included in the report. The property will consist of a main four story L-shaped building with 140 one-bedroom units and significant common areas. The one-bedroom units would be approximately 585 square feet in size. Common areas would include a commercial kitchen, dining room, activity rooms, exercise center, beauty parlor, offices, facilities for bathing and assistance with other ADL' s, nursing stations and medical examination rooms. Adjacent to the main building and connected by a walkway in order to share staff and some common facilities would be a one story building consisting of 24 studio units for higher acuity residents needing more specialized services. The studio units would be approximately 480 square feet in size. Each unit will have a residential feel and will include a small kitchen with cupboards, a small refrigerator and a microwave. All units will be fully handicap accessible. All utilities except telephone will be included in the rent. The financing described below will allow the building design and materials, the interior amenities and finishes and the grounds to be indistinguishable from a market rate property. A site location map, concept site plan and preliminary building rendering follow this description. The development team is made up of SCA Properties LLC and Evergreen Real Estate Development Corporation. The individuals at SCA include Gary Carlson, Sr. and Andy Aulde. Mr. Carlson is a native of Minneapolis and founded www.scapropertiesllc.com . Many of the properties listed on this website developed by him or those that worked for him are in Minnesota or are housing for lower income seniors. Mr. Aulde has worked in the fields of affordable housing, senior's housing and assisted living for almost 30 years, most notably with the firm, The Shelter Group based in Baltimore. Greg McClenahan is the founder and President of www.evergreenredc.com , based in Prior Lake, MN. His firm has developed a number of LIHTC properties in Minnesota and six affordable assisted living properties in Iowa, which are similar in nature, but were financed somewhat differently than what is proposed here. Once the property is constructed, the property will retain either www.bma-mgmt.com or wvw.pathwaysl.com to operate and manage the property and provide the services. Both of these companies manage large numbers of affordable assisted living properties in Illinois, Indiana and other states where the LHITC with Medicaid Waiver model has been used for many years and are considered the premiere management companies for this type of property. We are pursuing a number of projects in Minnesota including one in West St Paul that serves as our prototype with respect to market, design and financing. As mentioned, properties of this nature are in part financed using low income housing tax credits. Tax credit allocations provide for a 30% boost if the site is located in a HOD designated Qualified Census Tract" (QCT). This provides 30% more equity available to finance the project. Our project in West St Paul is significantly helped by the fact that it is located within a QCT. Unfortunately, the site in Brooklyn Center is not in a QCT. Therefore, to help compensate for the difference, we are requesting the City's participation in the project in the form of establishing a Tax Increment Financing (TIF) district and financing the cost of the land. - \\ \\\\ • ,---- • •-- • I --- \\- I /H -vi U JT i I J•• j:. :-: S • I I14 FRANCE \ VA ilk _-- 1W- ! A - --- -- - -- r :i1i__J -'f [ L LT Ir-Z2 t '-.--I L .r.--? p ---. - ------------------ o---/riL-M'-) f1•••• L:c • J \\\ -- H (cj urY '\T•-,\ \, • JJ [ •,4i •--- - _':_-- ç€J t1 • rl 1i FEL. rTC)rFFTy RsE/ct- GFOUP WASHINGTONIBPLTIMORE U ATLANTA Memorandum- o: Gary Carlson, SCA Properties rom: Bob Lefenfeld )ate: 1/9/2015 le: Brooklyn Center Assisted Living Demographic Data o A Market Area Map (Map 1). o Market Area Map with 3,5&7 Mile Radius (Map 2) o Market Area Summary (Table 1). o Population and Household projections baser] on ESRI projections (Table 2). o 2015 Age Distribution (Table 3). o Senior Household Trends (Table 4). o 2015 Household Income (Table 5). o 2015 Income by Age of Householder (Table 6). o Income for l-Iouseholds 75 and Older (Table 7). o 2013 Net Worth (Table 8). 2013 Net Worth by Age of Householder (Table 9). o Persons 65 and Older with Disability (Table 10). ts you requester], attached is statistical information for the site located at 60006100 lrooklyn Boulevard in Brooklyn Center, MN. For the site, we have defined a market area nd compiled demographic information, comparing market data to data on the county in vliich the site resides. Information compiled includes: Table I summarizes statistical indicators of this market. We also computed two ratios to understand the capture rate for a 100 unit community: • A ratio based on 75+ households with incomes below $25,000 and one disability, • A ratio based on 75-i- households with incomes below $25,000 applying national fragility rate of persons requiring three to five Activities of Daily Living (ADLs) as predictive for need for assisted living care. We note that this is not the a capture rate analysis which would he included in a market analysis, which requires more detailed analysis by age cohort and converting senior households to persons. L 10100 Little Pat uxcnr Parkway a Suit45O n Columbia, Maryland 2 10441 a 410.772.lO0 fl Fax 866.243.5057 3227 Scnitb Churokuc Loni I' Suitu 1360 Woodstock, Guorgia 30! 55 11 770.517.2666 n Px 506.243.5057 L C, H SCA Properties _Assisted Living Data- Brooklyn Center Market Area [ I N VA Table 1 Market Summary - Brooklyn Center Market Yt4:,.IiiI,iI _____________ 2015 Population Age 75+/ % of Total Population 2015 Households v'ijth Hhldr 75+/% of Total Households 2015 75± Hhlds with Incomes less than $256! % of Hhlds over 75 2013 75, Hhlds with Net Worth under $100k /% of Hhlds over 75 2009-2013 Population 65+ with Disability) %oI Population 65± j HhMs 75 F w incomes<$25 with a Disability Hhlds 75+ wincomes <$25 and applying national fragility rate I.) I : 8,714 5.2% 5,766 9.5% 2,327 40.4% 12,749 27.7% 6,160 375% 11.5% 30.0% - Map 1 Primary Market Area - Brooklyn Center Market Al V. II:I . 0150 Park •F '4.5/'4 'I LI r i' 0 0 r I ,.B - ,•-5551 ws Ii i '5.L 2010T,ecLs C.1' 3.01 215.03 'i..,5l,:,,,I . 2,02 201.47 , `,ll - 'I 260.19 05,551,-ms 202 261.10 203.01 2 1l 20202 200.14 2'J F' tL 11450, 20031 20015 Nc 'Hop I Iletdsts -20,01 2c 10 M. 2 5 r W,r 220 200.22 C ii207201,23 C .1 L---I —t\, 201 1 Z I -'r 211 IC04 Rd 212 213 1020 2020 fl , I , C5 -.-- VrI( IS,' ''S I . cs_sr. 215.01 lIlt 'I 'Ii 215,02 1257 --------.--=----========Page 2 SCA Properties f Assisted Living Data Brooklyn Center Market Area - Fcz Map 2 Brooklyn Center Market and 3, 5 & 7 Mile Radius U --S 5 s LSTI1 1 '-'' -\ t /Brooklyn \/-p-3r--- / 3!bJsr I-,1JLs 19 A 1 SIj I NFl I on_— 33 \II I IIOf. >3 Idul- bi a•- -,- r 1S3nIhcnj Fl \I r— ' 3 -sIs'--lii /= 13dicia - .-Fsis CF-Is r Istid- rdnI OW. F.1.11 3 heights If I s ;! (1 -fig 1 `4 1.1 Page 3 SCA Properties I Assisted Living Data- Brooklyn Center Market Area i1 Table 2 Population and Household Growth Total Change Annual Change Population Count B - - II 2000 1,116,200 2010 1,152,425 36,225 3.2% 3,623 03% 2015 1,198,349 45,924 4.0% 9,185 0.8% 2020 3,247,515 49,166 4.1% 1 9,833 0.8% - Total Change Ann aI thange - Households Count B % 2000 456,129 2010 + 475,913 19,784 4.3% 1,978 0.4% 2015 496,446 20,533 4.3% 4,107 0.8% 2020 J 518,16 -0 21,721 4.4% 4,344 0.9% Source: 2000 Census; 2010 Census; Esri; and Real Properly Research Group, Inc. Annual Change- - Total Change H ________Count U % 165,113 160,104 -5,009 -3.0%-501 -0+3% J65,373 5,267 3.3%1,053 0.6% 171,138 5,7673.5%-1 1,1530,7% Total Change Annua l C ha Count H U 58,929 1 -2,975 -4.8%-298 -0.5% 60,816 1,887 3.2%377 0.6% 62,888 L2,072 3.4% -414 0.7% Annual Change in Number of Households, 2000 to 2020 C Hennepin County 5,000 - 4,000 3,000 - 2,000 F 1 1,000 - 0 -1,000 - 4,107 4,344 Brooklyn Center Market Area 414 -298 2000-2010 2010-2015 2015-2020 Page 4 SCA Properties I Assisted Living Data- Brooklyn Centel, Market Area Table 3 Age Distribution of Population ;)j%ijli',0!jIi7 RIT1.,hYr_[h5 , Children/Youth 295,929 24.7%48,150 29.1% Under 5 years 74,377 62%13,351 8.1% 5-9 years 74,711 6.2%12,493 7.6% 10-14 years 73,672 6.1%11,553 7.0% 15-19 years 73,169 5.1%10,753 6.55/. Young Adults -272,996 22.8%37,079 22.4% 20-24 years 89,768 7.5%11,715 7.1% 25-34 years 183,228 15.3%-25,365 15.3% Adults 425,269 35.5%55,140 33.3% 35-44 years 158,228 1372%21,984 13.35' 45-54 years 160,804 13,4%20,214 12.2% 55-61 years 106,237 8.9%12,941 7.8% Seniors -204,155 17.0%25,002 15.1% 62-64 years 45,530 3.8%5,546 3,4%- 65-74 years 89,459 7.5%10,742 6.5% 7S-84 years 44,689 3.7%5,554 3.4% 85 and older-24,476 2.05.3,160 1.9% - TOTAL 3,198,349 100%165,371 10055 Median Age 36 33 Source: [sri, [WIG, Inc. 2015 Age Distribution U Brooklyn Center Market Area - 3 Hennepin County 15.1% Seniors --=-- -- -= J 17.0% 33,3% Adults -===- -.=- - --.-- -35.5%------ ----- ------- -5-- Young F - - 22.4% Adults 22.8% Child/Yout h - I 24.7% 0%10% 20% 30% 40% 51 Pop Table 4 Trends in Senior Households ill 1. 9 .3,11 5. 8r3%51 7317I1. rl,ikt,1) ltill'4irItltcl Oitsi1Sar )5'Gsr -sC:rl /.0iJIi,F.jr U61511:'iyi., 55 to 61 7,325 35.5%7,750 33.2%8,004 30,9 1,4255.8%85 1.1%2543.1%51 0.6% 62.64 2,650 12.9%3,321 14.2%3,430 13.2%651 24.8%132 4.55'109 3.3%22 0.6% 55 to 74 4,957 24.0%6,518 27.9%8,116 31.3%1,561 31.5%312 5.6%1,598 24.5%320 4.5% 75 and older 5,670 27.5%5,765 24.7%6,361 24.6%96 1.7%19 0.3%595 10.3%119 2.0% Householders 20,612 300.0%23,855 100.0% 25,911 100.0%2,744 13.3%549 2.551 2,556 10.9% 511 2.15/. Householders 167+13,287 15,606 17,907 2,318 17.4%464 3.3%2,3011 14.7%460 2.8% Source: 2010 Census; [sri; [PRO 2015-2020 Older Adult Householders by Age 9,000 7,750 8,004 102010 8,116 8,000 ' 7,325 ' --I --- r;2015 7,000 - 6,518 I 6,361 6000 Ii 2020 . --- 5,670 5,766 '6 4,957 5,000 4,000 3,321 3,430 3,000 ----C-' -. 2,000 1,000 55 to 61 62-64 65 to 74 75 and older Page 5 SCA Properties Assisted Living Data- Brook l yn Centel , Market Area [FN- 1-i-iI j i Table 5 2015 Household Income '3;l• c1._l 'lj I_-5i.J1117(OCIi. lci-111. JI,i:. n l:_ less then $15000 50,918 10.3%7003 11.5% $15,000 $24,999 36,920 7,4%5,736 9.4% $25,000 $34,999 39,314 7,9%6.154 10.1% $35,000 $49,999 62,893 12.7%9,789 161% $50,000 $74,999 83,569 16.2%12,114 19.9% $75,000 $99,999 55,290 13.25'8,432 13.9% $100,000 $140,909 80,648 162%8,393 13.8% $150,000 Over 76,889 15.5%3,196 5.3 % Total 496,446 1007 60,1316 100% Med ia n Income $67,402 $53,562 Source: Esri; Real Property Research Group, Inc. 2015 Household Income $lsa^k 5,396 -- - $100 -s149s - - 133" 47 5 .3091<139% _l 13.2% C $004 7 41 1 INS 1 16 ,6 3 !119.9% 335-4401<F -' 16,1% -H $25-$341<I 10.1% : Brooklyn Center -MurketAnea 415.424(1 LHe000pie County 0%5% 10% 15% 20 1/ 25% %Households Table 6 Income by Age of Householder !I4,3(hahltI'/1t i0lii;i6,r1:'T,27%r0 1,'%(r%<(sty '-15011/81 ' qI) h-( al It,, '"1151(,S 1.15 1 til Pit I 1 less than - $15,000 77003 614 -7725-4 -,254 -1,067 -1,024 1,275 -688 1,020 $15,000 $24,999 5,736 382 992 779 726 886 664 1,307 $25,000 $34,999 6,154 367 1,182 1,117 933 834 743 978 $35,000 $49,999 9,789 345 1,677 1,599 1,483 1,554 1,774 1,356 $50,000 $74,999 12,114 378 2,436 2,576 2,684 2,309 1,149 582 $75,000 $99,909 13,432 178 1,754 1,916 1,944 1,599 737 304 $100,000 $149,099 8,393 127 1,626 2,305 1,877 1,784 537 136 $150,000 $199,999 1,872 21 295 330 570 480 112 63 $200,000 over 1,324 10 1 191 1 346 1 294 1 349 1 115 - 19 Median Income $53,562 $30,844 $56,145 $64,124 $64,638 I $60,677 r $44,848 $30,680 Source: Esri; RPRG, Inc, 2015 Median Household Income by Age of Householder $70,000 $64,124 $64,638 $60,000 $53,562 $56,145 - - - $40,000 $30,044 $30,000 C II $20,000 $10,000 $0 All Rhlds Age < 25 25-34 35-14 45-54 Age of Householder $60,677 $44,818 $30,680 55-64 65-74 75 + Page 6 .44 .I2oe' - 'ii -iv:irci; Sn less than $15,000 138,071 28.2%18,776 31.3% $15,000 $34,999 31,608 6.5%4,485 7.5% $35,000 $49,999 16,482 3.4%2,398 4.0% $50,000 $74,999 28,765 5.9%4,334 7.2% $75,000 $99,999 19,5-31 4.0%2,983 5.0% $100,000 $149,999 30,449 6.2%4,462 7.4% $150,000 $249,999 42,038 8.6%6,309 10.5% $250,000 $499,999 68,750 14.0%9,072 15,1% $500,000 Over 114,269 23.3%7,248 12.1% Total t 489,96 3 100".60,U67 10 0 % Median Net Worth H1 1 4 ,3 86 Source: Esri Real Property Research Group, I nc. 2013 Net Worth 23.3% $250-$4991( JH $150-$2491( 0 $100-$140K - ---4 6.2,r r: Oroottlyn Center 8 rulorketAreo$75 $993 _j 0 Hennepin$50 -$745(County $33-9405,31"4 // 5 10 -9 3455 1281 0% 5% 10% 15% 20%25% 30% 35% 53 Households SCA Properties I Assisted Living Data- Brooklyn Center Market Aiea -1il Table 7 Income Households 75 and Older i3ooB0 vfjtt97 5o.:e4-'f:r j ,.i,::1r'r'ç,.,Jj. less than $15,000 1,020 17.7 1,171 18.4% 515,000 $24,999 1,307 22.7%1,084 17.0% $25,000 $34,999 978 17.0%852 13.4% $35,000 $49,999 1,356 23.5%1,567 24.6% $50,000 $74,999 582 10.1%806 12.7% $75,000 $99,999 304 5.3%469 7.45/ $100,000 $149,999 136 2.4%209 3.3% $150,000 $199,999 63 3.1%141 2.2% $200,000 over 1 19 0.3%1 62 1.0% Total 5,766 100%1 6,361 100% Median Income 110 ±:7$^3 ^57^10 Snr'jrce; Ancoricnr, Comniunty Surrey 200y-20L3 Estimates, R5'2G Inc. 2015 & 2020 HI-1 Income for Householders 62+ $2003> 1 ' . 2020 Household InCeflie 2 2' o 2015 Household Income $100.$I'190 1' sso-$c.s -- - 515523(5 J__L_____ - 22.7' - 10,0% 20.0% 30.0%% of Households Table 8 20.1.3 Net Worth Page 7 SCA Properties I Assisted Living Data Brooklyn Center Market Area ITILriI Table 9 2013 Net Worth by Age of Householder eO' 4 I us'-,9-ç ,;3f -us ;'.-it;'i less than $15,000 138,071 17,775 45,259 27,913.18,516 15,042 6,327 7,243 $15,000 $34,999 31,608 3,430 10,797 7,012 4,830 3,006 1,251 1,282 $35,000 $49,999 16,482 682 4,785 11,770 2,502 2,030 1,216 496 $50,000 $99,999 48,296 1,277 11,537 13,459 8,794 5,720 3,779 3,730 $100,000 $149,999 30,449 545 6,351 6,940 5,163 5,039 3,851 2,530 $150,000 $249,990 42,038 478 5,265 8,306 8,832 8,707 4,962 5,488 $250,000 over 183,019 360 7,947 1 19,103 1 46,243 1 51,679 32,493 26,189 - -i'':i')'''t:' t J'.'''f.lf ''•. - Median Net 761 0,21-7 0,003 $250,001 Source: Es6; RPSG, Inc, 2013 Median Net Worth by Age of Householder Hennepin County $300,000 $250,001 $250,001 $250,001 $250,000 $232,008 -- I C $200,000 $150,000 $114,386 $100,000 $50,000 All l-Jh!ds $60,217 $10,357 15-24 26-34 35-44 45-54 Age of ffouseholde 5561 65-74 75+ Table 10 Persons 65 and Older with Disability - --. - !-f olin i'11,olP Q',S'/_______________________2•____________________________________ Any Disability 41,014 - 31.4%6;160 37.5% Ambulatory Difficulty 24,589 18.8%3,740 22.8% Self-Care Difficulty 10,176 7.8%1,740 10.6% Independent Living Difficulty 18,558 14.2%3,026 18.4% Hearing Difficulty 17,409 13.3%2,557 15.6% Vision Difficulty 6,583 5.0%1,137 6,9% Cognitive Difficulty 9,460 7.2%1,643 10,0% Total 65+ Population 130,594 16,428 Source: Census Bureau; 2011 ACS 5-year data Page 8 SURFACE SCHEME - - 108 SURFACE PARKING STALLS - - - - 1 Site Plan - Surface ParkjSche m e v--' 1 60-0 West Saint Senior g 'IV \/VJ L J - ala Plan7:1 11: i "I - r a a -1: I \ - - UNDERGROUND SCHEME - 58 UNDERGROUND PARKING STALLS - 51 SURFACE PARKING STALLS (Th Silo Plan - Underground Parlcingcherne '--' 1=60-0 Ei West Sairil Paul Senior Living VK\ \7 Site Pla SDI01. 1• I IV- 1 ? I 4/f h/,_! I -= we LI1..rr.J 1 L I __ JIiy - . L LV ( > r - _. I L __-__----- !1 r(\ 1! it k \bi7 1JI ____ Jr ______)1 T1L .k L L 1 I I ;•/!i. (?i ! r L 1