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HomeMy WebLinkAbout2017 08-28 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 AUGUST 28, 2017 CITY HALL - COUNCIL CHAMBERS VI tSiI) i I]I i The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 7:22 p.m. Mayor/President Tim Willson and Councilmembers/Commissioners Marquita Butler, Kris Lawrence-Anderson, and Dan Ryan. Councilmember/Commissioner April Graves was absent and excused. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Finance Director Nate Reinhardt, Acting Director of Public Works Mike Marsh, Director of Business and Development Gary Eitel, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. DISCUSSION REGARDING A LETTER OF INTENT BY SCA PROPERTIES, LLC (DEVELOPER OF THE SANCTUARY AT BROOKLYN CENTER) TO ACQUIRE 6001 AND 6007 BROOKLYN BOULEVARD FOR THE DEVELOPMENT OF AN ADULT DAY CARE Director of Business and Development Gary Eitel introduced the item, explaining SCA Properties LLC, the developer of the Sanctuary at Brooklyn Center, a 158-unit affordable assisted care senior housing apartment project at 6121 Brooklyn Boulevard, has expressed interest in developing the adjacent two commercial lots for a 5,200-sq. ft. commercial building for an adult day care. Mr. Eitel summarized past EDA consideration of this property and presented the concept designs and building rendering. He stated Mr. Aulde, on behalf of SCA Properties LLC, has provided a draft Letter of Intent that establishes the purchase price of $500,000; the similar use of a Purchase Money Mortgage that would provide for principal repayment of 50% of any profit in the event of a sale or refinancing during the first 25 years; and, a forgiveness clause should the property not be sold or refinanced within the first 25 years. Mr. Aulde has indicated that similar to the Sanctuary at Brooklyn Center senior project, this proposal is subject to securing the necessary mortgage approvals. Mr. Eitel displayed a site plan, noting the location of the proposed building that would contain a peaked roof line similar to the Sanctuary at Brooklyn Center. He also displayed the floor plan and explained if approved, these two lots would be removed from the Tax Increment Financing 08/28/17 -1- (TIF) 6 Housing District and the reimbursement of the TIF 3 Housing Funds used for acquisition of 6101 and 6107 Brooklyn Boulevard. That is where the use of the $300,000 deposited in the EDA fund from the 6121 Brooklyn Boulevard closing is a potential option that could be used to reimburse the TIF 3 Housing Fund and provide the future funding source for the future acquisition of the two adjacent residential properties. Mr. Eitel asked whether the EDA finds this to be a complimentary land use and in keeping with the redevelopment vision for Brooklyn Boulevard and if it wishes to proceed with the potential sale of 6101 and 6107 Brooklyn Boulevard as outlined in the Letter of Intent by SCA Properties, LLC. Councilmember/Commissioner Lawrence-Anderson asked about the capacity of this facility. Melody Bridgeman, 4922 Aldrich Avenue S, representing SCA Properties, stated they think this will be a great complimentary use to the Sanctuary at Brooklyn Center. She stated the capacity would be 55 persons; however, there will be a range, and it will be geared towards affordable with 70% using the elderly waivers, though there are no restrictions. Councilmember/Commissioner Butler asked if there is another adult day care facility in Brooklyn Center and whether SCA Properties had done a similar building and use. Ms. Bridgeman stated they did a preliminary market study and found demand for 55 persons but she does not know if there is another such facility in Brooklyn Center. She stated they have not done a similar adult day care facility but have several under construction. Ms. Bridgeman stated they are contracting with SarahCare, a premiere company that has done projects in 13 other states, to determine how to configure and use the space. In addition, they are using the same architect as used with the Sanctuary at Brooklyn Center. Mayor/President Willson stated it seems to be a very good and complimentary use. The consensus of the City Council/EDA was to direct staff to move this project forward. DISCUSSION REGARDING ACCEPTING THE WESTERN VEHICULAR AND PEDESTRIAN ACCESS IMPROVEMENTS FROM XERXES AVENUE & 55T11 AVENUE INTERSECTION AS AN ELIGIBLE REIMBURSABLE IMPROVEMENT TO THE SHINGLE CREEK CROSSING DEVELOPMENT (TAX INCREMENT FINANCING DISTRICT NO. 5) Director of Business and Development Gary Eitel introduced the item and reviewed past City Council and EDA action to create Tax Increment No. 5, a 16-year Renewal and Renovation Tax Increment District, which included the Brookdale Mall properties with the exception of the EDA parcel, Kohl's, Applebees, former Midas Muffler site, and Sears. He displayed an aerial map of the subject site, noting the areas of development, and explaining that when the master plan was developed, there was a lot of interest on the 56th Avenue entrance but not as much on the 55th Avenue (Sears) entrance location. 08/28/17 -2- Mr. Eitel reviewed the consideration of the City Council on September 26, 2016, on the structuring of a TIF 5 bond issue to repay $1.7 million of the $2.4 million TIF 2 Inter-Fund Loan and the balance of the PAYG Note, a budget strategy to maximize investment opportunities within the Shingle Creek Crossing Development. The 2017 tax increment revenue has been identified at $570,000. Mr. Eitel noted the TIF 5 fund balance project at the end of 2017 is $742,838, of which approximately $249,000 has been identified by the City's financial consultant as funds eligible for out of district expenditures. Beginning in 2017, 80% of the tax increment generated from TIF 5 is limited to paying debt with 20% annually available for out of district expenditures. Mr. Eitel displayed the Shingle Creek Crossing PUD plan that illustrated the western access improvement across the former food court parking lot to improve pedestrian accessibility from the Xerxes Avenue sidewalk and Twin Lakes Regional Trail and define an access drive to control vehicular movement through the existing parking lot. If approved, the estimated cost is $167,718 for the improvements, approximately $30,000 for lighting, and $9,000 as an interim screening fence on pad sites 9 and 10. The budget proposed for these improvements is $210,000. Mr. Eitel indicated the City has sufficient funds to invest in improvements into the site and still maintain a balance of about $500,000. Mr. Eitel asked whether the EDA wished to invest the eligible TIF 5 out of district fund balance into vehicular and pedestrian access improvements across the western parking lot to Xerxes Avenue. He stated he has always looked at how to invest dollars to improve the site but the funds can be used out of district for other improvements the City Council/EDA supports. The consensus of the City Council/EDA was to support and move forward with staffs recommendation. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Lawrence- Anderson seconded adjourrnnent of the City Council/Economic Development Authority Work Session at 7:41 p.m. Motion passed unanimously. 08/28/17 -3- 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 August 28, 2017. 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 September 11, 2017, Regular Session. Immt k -!2;^z 1^e^ City Clerk Mayor 08/28/17 -4-