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HomeMy WebLinkAbout2016 01-25 CCM Work SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION JANUARY 25, 2016 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 7:56 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners 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 & Community Standards Vickie Schleuning, City Attorney Troy Gilchrist, and Denise Bosch, TimeSaver Off Site Secretarial, Inc. UPDATES ON THE EDA'S PURCHASE AGREEMENT AND DRAFT TAX INCREMENT AGREEMENT ASSOCIATED WITH THE SANCTUARY AT BROOKLYN CENTER SENIOR LIVING PROJECT (6121 BROOKLYN BOULEVARD) Director of Business and Development Gary Eitel provided the City Council/EDA with background; an update on the draft purchase agreement; the site plan; and the financing structure for The Sanctuary at Brooklyn Center Senior Living Project. He introduced Jenny Boulton of Kennedy & Graven. Councilmember/Commissioner Ryan asked if there were any demands on TIF District 4. Mr. Eitel replied that there are no other demands and it will be paid off in 2016. Councilmember/Commissioner Ryan clarified that the City has the option to leave the TIF District standing for a certain number of years. Mr. Eitel replied that it expires in 2020, but the City Council/EDA can keep it alive and use it for an eligible housing project. Ms. Boulton provided an overview of documents that are being prepared for the City Council/EDA' s consideration of the purchase agreement. Mayor/President Willson asked if there was a scenario when the TIF District would expire. Ms. Boulton stated that the TIF District expires December 31, 2043, and the Pay-As-You-Go note could be repaid early. She discussed various options with regard to paying off a TIF District early or shifting the payment source. 01/25/16 -1- Ms. Boulton went over the draft purchase agreement and the project's Tax Increment Development Agreement. Councilmember/Commissioner Ryan clarified that should the owners decide to sell the property at a profit and repurpose it after receiving the subsidy, they would have to reimburse the City for the full value of the subsidy. Ms. Boulton replied that the City would be paid back 50% of the profit up to the $1.5 million purchase price. Councilmember/Commissioner Ryan stated that the benefit to the City is that years from now if the property is more valuable, the City would recover that equity. Ms. Boulton stated that TIF restrictions on the use of the property would be in place for 15 years. If the property was sold after 15 years and didn't meet the qualifications of the TIF District, the TIF District would be terminated. Councilmember/Commissioner Ryan clarified that under the terms of the development agreement, the City would have the authority to refuse the proposed repurposing. Ms. Boulton replied that the City has the authority to consent to certain transfers and the remedy would be to terminate the TIF District. The majority consensus of the City Council/EDA was to move forward. REVIEW OF THE CONCEPTUAL DEVELOPMENT PLANS AND VISION PROPOSED BY SAND DEVELOPMENT FOR A MARKET RATE APARTMENT DEVELOPMENT WITHIN THE SOUTHERN PORTION OF THE OPPORTUNITY SITE Mr. Eitel provided background and the conceptual master plan. Mayor/President Willson asked what phase the amenities would fall under. Mr. Eitel stated that the amenities would be included in the first phase of the development. Councilmember/Commissioner Ryan asked if preliminary engineering studies had been done regarding the soil conditions and groundwater elevation. Mr. Eitel stated that soil reports for this project had not been completed yet; however, previous investigations had shown sandy soils with groundwater at 10 to 12 feet. Councilmember/Commissioner Ryan asked about residents having one interior parking and one exterior parking space per apartment. Mr. Eitel stated that opportunities to expand the underground parking will be discussed with the developer. Councilmember/Commissioner Ryan stated that he likes the overall concept and talked about trying to attract a segment of people with the income to go elsewhere. Mr. Eitel stated that the amenities will be worked on to make the project marketable and exciting. 01/25/16 -2- Councilmember/Commissioner Lawrence-Anderson asked about the square footage of the apartments. Mr. Eitel provided the approximate square footage of each floorplan and stated that he doesn't believe that the exact square footage has been settled. Councilmember/Commissioner Lawrence-Anderson asked about the anticipated extra traffic on Shingle Creek. Mr. Bitel commented on the size of past commercial uses for this area as a regional shopping center and indicated that additional traffic studies and water and sewer reports will be prepared for this development. Councilmember/Commissioner Lawrence-Anderson asked about access sites. Mr. Eitel pointed out the proposed access sites. The majority consensus of the City Council/EDA was that the design schemes and planned improvements provided by Sand Development and Solution Blue satisfactorily met the City's vision for the redevelopment of the southern portion of the Opportunity Site. 2016 LEGISLATIVE PRIORITIES Mr. Boganey stated that there has been a request from Councilmember/Commissioner Ryan to seek some property tax relief for homeowners in this session at the January 30th Legislative Breakfast. He stated that he has drafted a memorandum outlining potential priorities based on the City Council/EDA' s feedback. If consensus is reached on key priorities, he will draft a statement to pass out to legislators and other community representatives. Mayor/President Willson stated he does want a statement drafted and asked Councilmember/Commissioner Ryan to work on language regarding the property tax relief. He is comfortable with the priorities and would like a handout to be distributed to legislators and groups representing the City. Councilmember/Commissioner Ryan stated that Brooklyn Center residents haven't experienced the benefits of the home value recovery and that he doesn't expect much from the short legislative session but feels it is helpful to ask. He likes the other priorities and asked if the City Council/EDA would be better off with a shorter list and giving legislators the top three or four priorities. Councilmember/Commissioner Myszkowski stated that most cities would have interest in the priorities with the exception of the Fair Housing Policy and the Predatory Offender issue. She stated it would be great if the City had partners with respect to those issues and would like to bring them to the fore. Mayor/President Willson stated that if the City doesn't say anything, other cities won't know the issue. He stated that the City got a lot of attention by filing the HUD complaint and if we put something like this out there, who knows what synergy it will build. Councilmember/Commissioner Myszkowski pointed out key wording under the Fair Housing Policy in the priority memorandum that encourages each of the agencies to meet their Federal 01/25/16 -3- and State obligations to eliminate housing discrimination and assure that poverty is not concentrated in certain segments of the region. Mr. Boganey stated that if the City reaches consensus with the agencies on what needs to be done, it will still require legislation. Councilmember/Commissioner Ryan stated he agrees with the importance of the Fair Housing Policy and thinks it would be pertinent to raise the issue and apply leverage on an odd-numbered year legislative session. Mayor President Willson stated that he agrees that Property Tax Relief is a top priority. Mr. Boganey asked if the City Council/EDA wants to request that the legislature provide property tax relief. Councilmember/Commissioner Ryan stated that he thinks that residents will be angry if we don't ask for relief immediately. Mr. Boganey stated that a win would be to have a study on the issue of predatory offenders implemented and he will put together a final draft of the priorities for the City Council/EDA. Mayor/President Willson asked that Mr. Boganey also provide an informational cheat sheet. Councilmember/Commissioner Ryan stated he is pleased to see the Sales Tax Exemption Simplification priority listed in the memorandum. Mr. Boganey stated he will have everything prepared for the Legislative Breakfast on January 30th. The majority consensus of the City Council/EDA was to present the priorities at the Legislative Breakfast on January 30thi• TRANSMITTING HOUSING COMMISSION CURBSIDE CLEANUP REQUEST Mr. Boganey stated that the City Council/EDA has been asked by the Housing Commission to consider implementing a curbside cleanup. He stated that it may be possible to implement it this spring if we act quickly. He asked for direction regarding implementing a curbside cleanup. Mayor/President Willson stated that staff should put together implementation information regarding the program including costs and present it to the Housing Commission for implementation this spring. If the logistics can't be worked out, then it would have to be implemented at a later date. Councilmember Lawrence-Anderson stated her support of the program because of the convenience. 01/25/16 -4- Councilmember/Commissioner Ryan pointed out how this program would address issues with the City's image when items such as couches are put by the curb and left for an extended period of time. Mayor/President Willson stated that there will be a need to advertise what is acceptable to leave at the curb. Mr. Boganey stated that there would need to be program marketing and resident education. Discussion took place regarding how residents would be billed and residents that would have to pay the fee but would not use the program. The majority consensus of the City Council/EDA was to move forward with the Curbside Cleanup Program. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Lawrence- Anderson seconded adjournment of the City Council/Economic Development Authority Work Session at 9:20 p.m. Motion passed unanimously. 01/25/16 -5- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1.That attached hereto is a full, true, and complete transcript of the minutes of a Work Session of the City Council of the City of Brooklyn Center held on January 25, 2016. 2.That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its February 8, 2016, Regular Session. AW-W44-m^ / 2 City Clerk Mayor 01/25/16 -