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Home My WebLink About2019 01-28 CCM Study SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION JANUARY 28, 2019 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Mike Elliott at 6:00 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, Kris Lawrence -Anderson, and Dan Ryan. Councilmember April Graves was absent. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Finance Director Nate Reinhardt, Director of Public Works Doran Cote, Community Development Director Meg Beekman, Planner and Zoning Administrator Ginny McIntosh, Police Chief Tim Gannon, City Attorney Troy Gilchrist, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS City Manager Curt Boganey requested that Regular Meeting Agenda Item 9b be removed as the applicant has withdrawn the request for a Special Use Permit. Mr. Boganey stated he had provided copies of a staff memo regarding Work Session Discussion Item 4 related to a proposed new cell phone for Mayor Elliott. He added the memo provides additional cost details. Mr. Boganey stated the City Council had received an updated list of rental licenses for approval, with the addition of a license for 7100 Summit Drive. Mayor Elliott requested that Consent Agenda Items 6c, 6d, 6e and 6g be removed for additional discussion and deferred decision. Councilmember Ryan stated the City Clerk's appointments spreadsheet did not include City Council Liaison to the Minneapolis North Tourism Bureau, which has been one of his appointments. He added the 2018 appointments spreadsheet had a comprehensive list of all appointments and openings. Mayor Elliott requested that City Staff add the City Council Liaison to the Minneapolis North Tourism Bureau to the appointments spreadsheet. He added City Councilmembers should continue to serve in any committees to which they were appointed in 2018 until further notice. 01/28/19 -1- There was a majority consensus among the City Council to omit Consent Agenda items 6c, 6d, 6e and 6g, and Regular Agenda item 9b. MISCELLANEOUS Councilmember Butler requested clarification regarding the "Sister City Meeting" on the City Council's 2019 meeting schedule. Mr. Boganey stated the Sister City Commission, with support and guidance from City Staff Liaison Dr. Reggie Edwards, was established a year ago and began meeting regularly last month. He added the Commission was established to consider potential groups or cities that would like to form a relationship with the City of Brooklyn Center. He noted the City Council's role will be to provide support for the Sister City Commission as they carry out their mission. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS CONCEPT DEVELOPMENT PROPOSAL FOR 5801 XERXES AVENUE N. FROM REAL ESTATE EQUITIES Community Development Director Meg Beekman reviewed a concept development proposal for 5801 Xerxes Avenue from Real Estate Equities (REE) real estate developers. She added the concept review relates to a proposal for the former Jerry's Foods site, which has been vacant since 1999, and the building demolished in 2003. She noted the informal concept review process is important for developers to receive feedback and comment from the City Council as early as possible. The City Council's discussion is non-binding, and there is no vote. Ms. Beekman reviewed the proposed development, consisting of 2 apartment buildings: senior living and affordable workforce units. She provided a breakdown of the number of units, sizes and rents affordability, as well as a broad overview of financing. She noted the applicant is requesting TIF financing of approximately $4.5 million as part of the application, and a public subsidy application would be required. Overall total development costs are approximately $58.8 million. Ms. Beekman requested City Council consideration of the concept review, including: whether the proposal is in keeping with the City's 2040 future Land Use Plan; whether any aspects of the site plan or architecture are of concern to the City Council; whether the use of public subsidy is appropriate for redevelopment of this site; and whether the proposed use for the site will support the City's strategic priorities of economic development and residents' economic stability. Alex Bisanz, REE Director of Acquisitions, stated REE is a St. Paul -based, multi -family company that has been in business since 1972. He added REE takes great pride in full-scale ownership and development management. He noted the company's current portfolio is approximately 4,000 units, with 75% of their properties in the Twin Cities and Rochester as well as a few properties in Indiana and Wisconsin. REE's most recent project is the redevelopment of 01/28/19 -2- the Pioneer Press building in downtown St. Paul into workforce apartments that are currently in lease phase. Mr. Bisanz stated the proposed site in Brooklyn Center is an exceptional location with access to transportation and surrounding Twin Cities amenities. The proposed project would be a $60 million investment that residents and the City of Brooklyn Center can be proud of, and REE will be committed long-term owners and managers. A leading local mortgage manager has indicated that over 6,000 workforce and affordable housing units will be needed in the Twin Cities by 2020. Mr. Bisanz reviewed the site plan's combination of 5 -story senior living and 4 -story workforce housing. Parking of 345 stalls provides a 1.30 ratio which is appropriate given the senior housing component with fewer drivers. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Mayor Elliott adjourned the Study Session to Informal Open Forum at 6:38 p.m. RECONVENE STUDY SESSION Mayor Elliott reconvened the Study Session at 6:48 p.m. CONCEPT DEVELOPMENT PROPOSAL FOR 5801 XERXES AVENUE N. FROM REAL ESTATE EQUITIES (continued) Councilmember Ryan asked whether 5.3% is the percentage of market rate, under "Market Advisors" in the REE presentation. Mr. Bisanz stated that is the penetration rate, or the number of individuals in the City of Brooklyn Center who would qualify for this type of housing, and who need to lease to get to stabilization. Councilmember Ryan requested clarification regarding 50-60% Area Median Income (AMI) for the workforce housing portion of the project. Mr. Bisanz confirmed that 20% of the units are at 50% AMI. He added these are the 2 -bedroom units with rent of $1013/month. Councilmember Butler asked why the developer is going with a mixed senior living and workforce housing project. Mr. Bisanz stated this is a very big investment, and it makes financial sense to bundle 2 different uses into one project. He added the local market is strong for both of these types of uses. He noted the two buildings would be separate but with some common spaces. Councilmember Butler stated proposed parking is lower than what is required in the City's parking Ordinance. She added she understands that older residents might drive and park less. She expressed concern that there is no on -street parking in this area, and there will be limited parking for visitors. 01/28/19 -3- Mr. Bisanz stated there will be a dedicated guest parking and accessible parking area. He added the proposed development uses a per bedroom ratio for parking, and CEE believes the parking will be sufficient due to the dominant mix of senior renters. Councilmember Butler stated the 2040 Comprehensive Plan does not include allocations for additional residential use. She asked whether City Staff has considered the appropriateness of changing the Comprehensive Plan to incorporate this amount of housing. Ms. Beekman stated the draft 2040 Comp Plan's Land Use chapter identifies additional residential development as a permitted use. Discussion of this item continued and reached conclusion at the January 28, 2019, Work Session. ADJOURNMENT The Study Session was adjourned at 6:57 p.m. 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 Study Session of the City Council of the City of Brooklyn Center held on January 28, 2019. 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 11, 2019, Regular Session. Barbara S u, City Clerk 01/28/19 -4- Mike Elliott, Mayor