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HomeMy WebLinkAbout2017 11-27 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 27, 2017 CITY HALL - COUNCIL CHAMBERS IIfSII] till DIII 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, Kiis Lawrence-Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Finance Director Nate Reinhardt, Director of Business and Development Gary Eitel, Interim Community Development Director Michael Ericson, City Attorney Troy Gilchrist, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. I ti DIYi I KS) hN flail] tIAI DhI ti DI DIk"AI DhI I i] ti HOM FURNITURE / KOHL'S LOT Director of Business and Development Gary Eitel introduced the item, reviewed the background, and described the components of the draft Tax Increment Agreement for the HOM Furniture/Kohl's lot. He presented the Springsted Financial structured Pay-As-You-Go Note based on 97.5% of the potential Tax Increment Revenue Stream projected from HOM's renovation, expansion and future development of the Kohl's lot, identified the projected TIF assistance terms, and But-For-Test/Analysis for the need of assistance. Mr. Eitel asked whether the EDA requires additional information for its future consideration of the KKMBA Brooklyn Center LLC (HOM Furniture) TIF agreement. Councilmember/Commissioner Ryan noted Springsted is used to structure these districts and in the past, it was mentioned staff and Springsted generally apply fairly conservative assumptions. Mr. Eitel stated that is correct. Councilmember/Commissioner Ryan noted in this case, interfund loans are mentioned and if the worst case occurs, there may be issues with other TIF funds. Mr. Eitel stated there is a concern when a loan is entered and interfund loans are repaid. However, in this case, it is a Pay-As-You-Go Note and requires HOM Furniture to build more on the site. Currently, the valuation of the property is $1.8 million, with the expansion it will be $5.4 million, and with the medical office it is up to $10 million. Then as time goes on, there is a 2% inflationary factor. Mr. Eitel explained if they don't develop, they are at risk and the City has no risk but does have a commitment for the $300,000 of infrastructure improvements. He stated there are more than sufficient funds to meet the City's obligations. 11/27/17 -1- Councilmember/Commissioner Lawrence-Anderson thanked Mr. Eitel for his hard work on this project and asked if he would be willing to return for the ribbon cutting ceremony. Mr. Eitel stated after retirement he intends to stay aware of all the good things going on in Brooklyn Center and offered to take the picture of that event. It was the majority consensus of the City Council/EDA to direct staff to proceed with the Tax Increment Development Agreement for HOM Furniture / Kohl's Lot. $]tUIt I&INi]k1iDk1W1 R JHøISM I Mr. Boganey introduced the item and representatives of Everybody In. Dr. Sam Grant, Everybody In Director of Research and Development, stated he appreciates the opportunity to partner with Brooklyn Center on this important issue to close the race equity gap, create opportunity, and economic stability for all. He stated they partnered to do a baseline report, which was presented to the City Council in July of 2016 and at that time, the City Council adopted a resolution. November 2016 to February 2017, they were involved with stakeholder interviews with a collective dialogue in May 2017. He described the three different stakeholders that were involved: Education, Non-Profit, and Business, and the five questions asked of each. Kia Her, Everybody In Research Analyst, described the challenges identified by each of the three stakeholders, strategies to identify challenges, key findings, keys to success, key implications. Dr. Grant stated the City has a lot of assets and the challenge is to get the 'wheels' in motion to foster a true deep effective racial equity strategy. He stated all stakeholders said it was important and they were willing to sign on, but that is easy to say when there is no risk attached. He noted Keys to Success included the need for the City to invest and drive the process forward. Dr. Grant presented the analysis in how to target resident populations, resulting challenges, the City's assets, and strategies to use. He explained the need for the City to partner with regional partners to grow small business networks through a business accelerator model to close the equity gap. Everybody In would partner with the City to gather the data and facilitate. Ms. Her described a pathway to racial equity through organizing a coordinated effort with collective impact measures, dialing in viable strategies for results that close equity gaps in educational attainment, employment, earnings in net financial wealth, and home ownership. She commented on the importance to consistently measure, monitor, amplify results, and implement long-term sustainability strategies to create enduring stability. Dr. Grant presented five next steps to drive racial equity and requested feedback. Councilmember/Comn-iissioner Ryan stated some time ago, before he served on the City Council, he felt this whole endeavor would be best addressed at the State and National government levels and he has been waiting to see something substantial in that regard being done. He noted at one time, it was thought City services should address things like the most economical way to fill potholes; however, that has now evolved. Councilmember/Commissioner 11/27/17 -2- Ryan stated Brooklyn Center is only 8.5 square miles and one suggestion is to build partnerships with neighboring communities. He stated with what we've observed with blue collar workers and the Rustbelt economy, there are also white folks in the City who are not doing well either. He noted what they are describing is parallel with Everybody In and the Brooklyn Bridge Alliance. Ms. Her stated they did speak to them as a stakeholder and they are doing a lot around youth and a good example. Dr. Grant stated the City has a network of capable agents on the ground who are aware and their role is to connect the assets of stakeholders and 'shine a light' with data to drive towards racial equity results. He explained they don't 'do' but play a connection role to build capacity that is not there so the City can deliver on racial equity. Councilmember/Commissioner Ryan stated if also talking about entrepreneurship, different approaches, and different age cohorts, then the focus should be on BrookLynk and the Brooklyn Bridge Alliance. Mayor/President Willson stated he is glad Dr. Grant is a resource the City can leverage into its overall strategy, noting BrookLynk is working with one sector of the population and when we look at racial equity, it is across the board, no matter race, creed, or religion. Mayor/President Willson noted the City has concentrated areas of poverty also that goes across the board so anything they can link into to build partnerships is good. He believed it would take thought as how to accomplish that through the process and he is glad they have talked with the City's stakeholders and they are receptive. Councilmember/Commissioner Graves stated she appreciated their work in putting together this report and is very interested in next steps. She sees this work around wholistic and health of the community as well because you will be healthier if you know how to process through your emotions, have healthy food, and a roof over your head. Councilmember/Commissioner Graves agreed there is probably need on the part of the City to do these kinds of things but she is not advocating to take them all on. She noted the City hired a communication person this year and other areas are being filled in so the City is better adapting to the changing demographics of the City. Councilmember/Commissioner Butler agreed and stated it seems like a lot to unpack. She asked about a realistic timefrarne for next steps and the most important things to tackle. Dr. Grant stated one critical next step is hiring a communication staff person to work with that person to put out a racial equity strategy communication to push out important information so they can galvanize themselves around an action framework. In addition, the City can take advantage of existing staffing capacity and say, based on resources we have, what they feel confident they can do in 2018 to move this agenda forward. Dr. Grant stated in 2018, he would like to have dialogue with staff to put together an action plan. He asked what can the City's different stakeholders and region do to amplify capacities. Dr. Grant commented on his firm's work on a design board with Rochester and Duluth who are saying they appreciate that Brooklyn Center is taking leadership on this, doing the right thing, and they want to follow in Brooklyn Center's footsteps. Dr. Grant stated it is important to keep moving forward, to engage residents 11/27/17 -3- who have been here a long time and know how the City used to be, how it has evolved, and can give information on perspective and identify critical differences. Dr. Grant stated the City needs to clearly articulate what is possible in 2018 and set forward a two- to three-year plan. Mr. Boganey stated if there is a consensus to move this effort forward, he would suggest staff return in 45-60 days with a more developed set of initial action steps and prioritization of activities the City has the capacity to move forward, or areas needed to develop further capacity. He stated there is a business assistant position in the 2018 budget to have one staff person available to implement some strategies and there is also funding for additional community engagement. Mr. Boganey acknowledged those positions alone will not be sufficient but can be part of the solution. Mayor/President Willson noted property values have gone up so the budget has a few extra dollars that could support some additional staff. He stated he is pleased with the trend and there is City Council/EDA consensus and support to move this forward. Councilmember/Commissioner Ryan stated it is not a surprise that if this moves forward, there will be challenges about whether this is a duplication of County or State efforts. He stated it is the City Council's job to demonstrate they feel compelled to fill the existing gaps, noting this is not an effort of duplication. Mayor/President Willson stated the City is not waiting for the State, County, or other agency to bail out the City. Mr. Boganey stated staff's objective should not be to duplicate on-going efforts with State and County resources, noting this report is asking what the City can do to better align those existing resources in a more clearly focused manner so the City's residents get the maximum benefit. It was the majority consensus of the City Council/EDA to receive the Socioeconomic Opportunity Environmental Scan Report and direct staff to further that effort. ,[,iu e1E!4 I 3hI I Councilmember/Commissioner Graves moved and Councilmember/Commissioner Butler seconded adjournment of the City Council/Economic Development Authority Work Session at 9:02 p.m. Motion passed unanimously. 11/27/17 -4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1.That attached hereto is a full, true, and complete transcript of the minutes of a Work Session of the City Council of the City of Brooklyn Center held on November 27, 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 December 11, 2017, Regular Session. 1",k'MAdYVL 7Z;^v- City Clerk Mayor 11/27/17