HomeMy WebLinkAbout2017 11-13 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
NOVEMBER 13, 2017
CITY HALL - COUNCIL CHAMBERS
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The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work
Session called to order by Mayor/President Tim Willson at 8:09 p.m.
Mayor/President Tim Willson and Councilmembers/Commissioners Marquita Butler, April
Graves, and Dan Ryan. Councilmember Kris Lawrence-Anderson was absent and excused.
Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Interim
Community Development Director Michael Ericson, Deputy Director of Building and
Community Standards Jesse Anderson, City Attorney Troy Gilchrist, and Carla Wirth,
TimeSaver Off Site Secretarial, Inc.
APPROVING SUPPORT TO HENNEPIN COUNTY HRA FOR
LYN WOOD POINTE APARTMENTS
Interim Community Development Director Michael Ericson introduced the item, explaining
Aeon is requesting the City pass a resolution supporting the Hennepin County Housing and
Redevelopment Authority (HRA) to provide a direct contribution and file an affordability
covenant on Lynwood Pointe Apartments. He provided background information related to this
item and explained this action would allow the property to apply for 41) tax classification
payable in 2019, which would provide for reduction of approximately $6,422 in property taxes.
Aeon sees the low-income classification as being critical to the long-term viability of the Towers
portfolio as affordable housing. Mr. Ericson stated Aeon also owns and manages The Crest
Apartments, and the Police Department is concerned with the 48% increase in police calls to that
location.
Mayor/President Willson stated this increase in police calls to The Crest Apartments is
concerning as the City worked to save that property for affordable housing. He stated he is glad
Aeon can take on Lynwood Pointe Apartments but conveyed the City Council has deep concerns
with the number of calls, consumption of staff and Police Department time, and safety of
residents.
Rick Kahn, 602 North 6th Street, Minneapolis, representing Aeon, stated with respect to
Lynwood Pointe Apartments, that property will not be managed by Aeon but by Steven Scott
Management who also manages the Earle Brown Farm apartments, which does not have any of
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these issues that have arisen at The Crest Apartments. He stated Aeon decided to bring on
Steven Scott to do a better job of taking on these problems. Mr. Kahn stated nothing will change
in the nature of the residents living at Lynwood Pointe and in the past, this has not been a
problem property. With respect to The Crest Apartments, Aeon has been around for 31 years
and owns almost 4,000 units, so the increase in police calls is not acceptable from Aeon's
perspective. Mr. Kahn explained that Aeon is in the process of changing the hours for the
security company to be on site, improving the quality of staff on site, and working proactively
with the Brooklyn Center Police Department to address their concerns. Mr. Kahn stated it is a
matter of pride to the extent that Brooklyn Center is not satisfied with the job Aeon is doing with
property it owns that will forever damage Aeon's ability to do the things they want to do
throughout the region. Mr. Kahn stated Aeon expects to be highly engaged with City staff and
the Police Department to create a plan and execute that plan to bring the number of calls down to
what the City Council finds to be reasonable. Mr. Kahn stated Aeon pledges to do that.
Mayor/President Willson stated Brooklyn Center has a history of dealing with apartment
complexes in various states so he is glad to hear Aeon is on top of this issue and willing to take
action as he does not want to see Aeon cast in a negative light. Mayor/President Willson stated
he believes in affordable housing that is safe and secure.
Mayor/President Willson asked Mr. Boganey if there was a process for staff to be in contact with
and alert property owners when there is a spike in police calls or a trend is noticed. Mr. Boganey
stated the general course is to stay in contact with all apartment owners and on a monthly basis
provide information on police activities on the site. He stated that should have happened with
this property so the management company would be aware of the increase in police calls. Mr.
Boganey stated he does not know the nature of these particular police calls, noting sometimes
they do not rise to the action of suspension.
Mayor/President Willson stated he is not opposed to a higher number of calls if medically
related, but documentation before the City Council/EDA tonight mentions some things that can
be addressed. He stated he is not opposed to working with Aeon on the Lynwood Pointe
properties or supplying a letter and lauds their efforts to provide affordable housing.
Councilmember/Commissioner Ryan asked about the present condition of Lynwood Pointe. Mr.
Kahn stated extensive third-party inspections were conducted of the structure, mechanical
systems, every single apartment, and no major repairs were required. He stated this property was
built in 1969 and until this purchase, was owned by the same family that built it so the building
and units were cared for remarkably well and are in excellent condition.
Councilmember/Commissioner Ryan asked about the anticipated rent reduction if this goes
forward. Mi'. Kahn explained the purpose of the tax classification is to avoid rent increases, but
for this classification would require a rent increase of about $50 a month. However, by getting
this tax reduction, Aeon does not have to increase the rents that would be required to balance
income and expenses.
Councilmember/Commissioner Ryan reviewed the rents for a one-bedroom and a two-bedroom
unit. Mr. Kahn stated other properties like Lynwood Pointe have been purchased, minor
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improvements made, and then rents increased by 20-30%, which displaces residents. He
explained Aeon's intent is to trend rent increases with the rate of inflation.
Councilmember/Commissioner Ryan stated he appreciates rents will be held down to the extent
possible. He asked whether Brooklyn Center can anticipate the property will be properly
maintained because the funds needed to maintain the property come from rents and if rents are
held back, it also impacts what can be done for improvements. Mr. Kahn stated Freddie Mac
will have a 10-year mortgage and requires a substantial deposit to pay for major improvements to
the property and those reserves were established at a very high level. Also, Aeon is a non-profit
organization so there is no desire to increase rents to increase profit. Mr. Kahn stated the intent
is for Aeon to own its properties for the next 100 years and Aeon will spend money to maintain
the properties so they are proud to have their name on the property for the next 80 and 100 years.
He noted in this case, there would be just two ownership names on this property and ownership
stability correlates to highly maintained properties.
Councilmember/Commissioner Ryan stated he has experience with property management and
appreciates the importance of good maintenance and management. He echoed the comments of
Mayor/President Willson that police calls need to be aggressively addressed.
Councilmember/Commissjoner Graves voiced her support to direct staff to write the letter.
Mr. Boganey asked whether there were plans to address the exterior of the building. Mr. Kahn
stated the cedar siding exterior will not be changed in a dramatic fashion, such as residing or a
change in how it looks. He stated if the City is concerned with anything about the exterior they
will gladly meet with staff to discuss those concerns. Mr. Boganey noted the building appears to
be a bit worn.
Mayor/President Willson agreed but noted the intent is to maintain affordable rents, which may
not generate enough income to pay for a change in the exterior; however, the City wants to
assure the property is properly maintained.
Councilmember/Commissioner Ryan stated his support is contingent upon exterior
improvements so this structure looks like it is on the same plane in appearance and value as the
City's other apartment communities.
The majority consensus of the City Council/EDA was to support Hennepin County HRA
providing a direct contribution and file an affordability covenant on the Lynwood Pointe
Apartment complex located at 6915 Humboldt Avenue North and direct staff to prepare a
resolution of support for consideration at a future City Council meeting.
MI1IJ 1Ik!41 DIII I
Councilmember/Commissioner Graves moved and Councilmember/Commissioner Butler
seconded adjournment of the City Council/Economic Development Authority Work Session at
8:31 p.m.
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Motion passed unanimously.
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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 November 13, 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 November 27, 2017, Regular Session.
jWV 4^^' / 7
City Clerk
Mayor
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