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HomeMy WebLinkAbout2009 01-26 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 26, 2009 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 7:52 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were City Manager Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, Community Development Director Gary Eitel, Assistant to the City Manager Vickie Schleuning, City Attorney Charlie LeFevere, and Carol Hamer, TimeSaver Off Site Secretarial, Inc. REQUEST FROM JIM SODERBERG REGARDING CENTERPOINTE APARTMENTS Mr. Boganey introduced the item and explained that over the last several weeks Mr. James Soderberg has approached the staff regarding his interest in acquiring CenterPointe Apartments. Mr. Soderberg has been consistently advised that staff is not at liberty to discuss his plans while the matter continues in litigation and he is not the owner. Staff has also advised Mr. Soderberg that the decision to revoke the license for the property has been made by the City Council and only the Council may rescind that decision. Mr. Soderberg was present tonight to address the City Council. Mr. James Soderberg addressed the City Council and stated his company currently has CenterPointe Apartments under contract. The intention is to do a major renovation which will likely include new or cherry-stained cabinets, real granite countertops, stainless steel appliances, American Cherry style floors, screened balconies, new parking lots, and fencing around the property. Mr. Soderberg requested Council consideration of the following: ■ It is mandatory that there is a rental license on the property in order to proceed with financing. ■ Possibility of being removed from Section 42 requirements. ■ Available City funds for rehab of the property. Mr. LeFevere answered questions of the Council on the legal process associated with the stayed revocation of the rental license at CenterPointe Apartments and the City's petition to the Judge to declare a material breach of the consent decree and reinstate the stayed revocation for one year. There was discussion on the following in relation to Mr. Soderberg's above request: ■ Sheriff's auction process and the redemption period granted to the current owner. 0 l /26/09 4- ■ Revocation of the rental license on the property. ■ Request by Mr. Soderberg to consider granting him a provisional license on the property. It was noted that Mr. Soderberg has a proven track record of successful property renovations. The majority consensus of the City Council was an interest in Mr. Soderberg's involvement in a renovation project at CenterPointe Apartments. It was noted that the Council is not able to grant Mr. Soderberg's request relating to a rental license on the property at this time due to risks associated with the pending litigation process and the current ownership status. In relation to Section 42, Mr. Soderberg indicated that MHFA may strongly consider a request by the City to remove the Section 42 covenants. The majority consensus of the City Council was that the City is not able to be involved in requests to MHFA regarding this property at this time due to the current ownership status and pending litigation, Mr. Boganey inquired about the City funding that would be necessary for a successful renovation project on the property. Mr. Soderberg expressed interest in the $2.5 Million rehab funds available through the City. REVIEW OF NSP HOUSING APPLICATION Mr. Eitel provided background information on Neighborhood Stabilization Funds that will be administered by Hennepin County. He explained each City will need to formally submit an application if the County is approved for funding. This formal application submittal will require Council approval. Mr. Eitel provided a brief overview, and answered questions of the Council on the following inclusions in the Neighborhood Stabilization Program (NSP) Application: Targeted Neighborhood Area within the High Need Zip Code Area: The City's Southeast Neighborhood ■ Housing Initiatives: o Down Payment and Closing Cost Assistance (Homeowners Assistance) o Purchase Rehabilitation Loan Program o Demolition/Land Banking There was discussion on the following in relation to the proposed housing initiatives: ■ Median income guidelines included in the NSP ■ Possible senior housing project RENTAL HOUSING STRATEGIES Mr. Boganey provided a brief overview of the Rental Housing Strategies Report. He stated staff has identified principal problems associated with rental housing. Staff will work on a conceptual change to Chapter 12. The intent is to have a rental ordinance that will compel similar living conditions for single family rental properties as non-rental single family properties. A similar concept with somewhat different standards would be applied to multi-family properties. He 01/26/09 -2- provided an overview of the following factors that will be used to determine whether a property meets required criteria: 1. Calls for service 2. Property maintenance (exterior and interior) 3. Whether Best Management Practices are being applied at any particular unit Mr. Boganey provided an overview of the following suggested classifications of rental properties: Tier 1, Tier 2, Tier 3, and Tier 4. He stated the goal is to define in such a way that if a property falls below a certain standard it simply is not eligible for a rental license. The majority consensus of the City Council was to direct staff to proceed in preparing an ordinance based on the Rental Housing Strategies outlined in the Rental Housing Strategies Report. Councilmember/Commissioner Yelich stated his support of providing staff with the necessary support to move forward with drafting the ordinance. Mr. Boganey stated some of the data included in the Rental Housing Strategies Report may change slightly due to computer system issues in pulling the data. ADJOURNMENT Councilmember/Commissioner Lasman moved and Councilmember/Commissioner Ryan seconded adjournment of the City Council/Economic Development Authority Work Session at 10:00 P.M. Motion passed unanimously. 01/26/09 -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 January 26, 2009. 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 9, 2009, Regular Session. City Clerk Mayor 1 01/26/09 -4-