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HomeMy WebLinkAbout2019 04-08 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 APRIL 8, 2019 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 Mike Elliott at 9:10 p.m. M IT-1]-0SNs"! Mayor/President Mike Elliott and Councilmembers/Commissioners Marquita Butler, April Graves, and Dan Ryan. Councilmember/Commissioner Kris Lawrence -Anderson was absent and excused. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Director of Fiscal & Support Services Nate Reinhardt, Community Development Director Meg Beekman, City Attorney Troy Gilchrist, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. BUSINESS SUBSIDY AND CITY PUBIC FINANCING POLICY DISCUSSION (Agenda Item 2) Mr. Boganey introduced Stacy Kvilvang, Ehlers & Associates, and invited her to address the City Council. Stacy Kvilvang stated this item was presented to the City Council at their March 25, 2019 meeting, at which the Councilmembers were given homework surveys to complete before this meeting. She added she received four completed surveys, and she thanked the City Council for doing their homework. Ms. Kvilvang introduced her colleagues, Jason Aarsvold and Keith Dahl. She reviewed the business subsidy and City public financing and summarized items that the City Council identified in their survey as areas of importance. She stated the City Council stressed the importance of quality, higher paying jobs; retention of major employers; and limiting the subsidy per job. She added incentives for commercial property rehabilitation was not listed as a priority. She noted preservation and stabilization of existing commercial and industrial properties was listed as a priority. Mr. Aarsvold stated tonight's goal is to identify key themes and reach agreement on important components. He added the City Council indicated an interest in job quality. He noted the 04/08/19 -1- minimum of 1 job has been utilized as the minimum to receive assistance, as required by State Statute. Ms. Kvilvang stated, for most Minnesota cities, the range is close to 1 job, but this depends upon the importance of job creation. Councilmember/Commissioner Graves stated she did not enter a number although she understands and supports the concept. She added she does not like how "1 job" looks on paper, but she likes the flexibility it provides. Councilmember/Commissioner Ryan stated he agrees flexibility is a key component. Mayor/President Elliott stated, in his opinion, "l job" does not seem like a serious requirement. Mr. Aarsvold stated a minimum number is required by State Statute. Councilmember/Commissioner Graves stated the minimum of 1 job leaves space for negotiation and flexibility, although it sounds small. Mayor/President Elliott asked whether there is an alternative way of expressing that more than 1 job is preferable. Mr. Aarsvold stated the policy will contain minimum qualifications and desired qualifications. He added priority could be given to businesses with higher numbers of jobs and higher wages. Councilmember/Commissioner Ryan stated, as an example, there is a local small business that is owned and operated by one person. He added this business could expand, and operating costs would increase. He noted the business owner might need additional help to pay the overhead costs of his expansion, and flexibility would be helpful in this case. Councilmember/Commissioner Butler stated she agrees with Councilmember/Commissioner Graves that she does not like how 1 employee looks on paper, but it makes sense and is better than creating limitations. Councilmember/Commissioner Graves asked whether cases would be decided on an individual basis without the limit. Mr. Aarsvold confirmed this. Councilmember/Commissioner Ryan stated it is assuring that the Ehlers agency and other consultants can provide project evaluations and provide cost comparisons. Mayor/President Elliott stressed the importance of maximum flexibility. He stated he would be interested to find out best practices are in relation to this issue. He added he receives resident comments regarding the amount of public subsidy that is given to developers and companies. He noted it makes sense to maintain maximum flexibility. 04/08/19 -2- Mr. Aarsvold asked whether the City Council would support full-time equivalents or giving partial credit for part-time jobs. Councilmember/Commissioner Ryan stated he supports partial credit as the contemporary job market often leads to non-traditional scheduling and some companies start employees out at part-time. Councilmember/Commissioner Graves agreed, adding young adults and youth often have part- time jobs, and many adults work multiple part-time jobs. Mayor/President Elliott stated he is unsure whether part-time jobs should be encouraged, as some employers hire part-time employees to avoid paying benefits. Councilmember/Commissioner Graves stated the employers would receive credit for part-time employment, but it would not need to be seen as an incentive for part-time jobs. Mr. Aarsvold confirmed this, adding the option would be provided rather than having it prohibited completely. Mayor/President Elliott stated he would. support language that would allow flexibility for subsidy for part-time jobs. He added this could discourage employers from exploiting employees to avoid providing benefits. Ms. Kvilvang stated the City Council/EDA may also review part-time jobs on a case-by-case basis. Mr. Aarsvold requested feedback and comment on the issue of job retention, on which the responses were split down the middle. Councilmember/Commissioner Butler requested clarification regarding job retention. She asked whether the term refers to keeping a company in Brooklyn Center, or the company's ability to retain employees. Mr. Aarsvold stated job retention is a policy priority which would enable the City to provide financial assistance to a company that is contemplating a potential move. Councilmember/Co mnissioner Butler asked whether there would be parameters associated with financial assistance requirements. Ms. Kvilvang stated the City's public financing policy addresses these types of issues. She added an employer would be required to provide data to support their request. Councilmember/Commissioner Graves stated it might be good to have the option for job retention assistance within the financial policy. Mr. Aarsvold stated it is not recommended that job retention be eliminated from the policy, but some policy direction is necessary in terms of priority. Mayor/President Elliott asked why a business might want to leave and what can be done to keep them here. He added it might be more cost effective for them to leave. Ms. Kvilvang cited an 04/08/19 -3- example of a movie theatre that was critical to a community and received financial assistance and tax abatement during the recession so they could stay in the community. Mayor/President Elliott stated there was adjacent property for sale near Surly Brewing Co. when they wanted to expand, but it was not a fair value. He added Surly consequently built a large facility in another city. He asked whether that would be a situation where the job retention policy would come into play. Mr. Boganey stated, for purposes of clarification, Surly Brewing Co. still exists in Brooklyn Center at the same level at which the business originated. He added they were looking at an opportunity to expand, and they could not find a location in Brooklyn Center that met their list of specific criteria. He noted no jobs were lost, as Surly continues to operate at the same level. Mr. Aarsvold stated it is common place for cities to want to retain employers but be unable to accommodate their future needs. He added the opportunity to do so would be cost prohibitive. Mr. Aarsvold stated, regarding wage goals, the City Council indicated that they support a minimum wage that is set above the State minimum, and that the average annual salary should be livable wage level. Ms. Kvilvang stated a flat rate is not advisable, because the policy would eventually require amendment, but rather use an index based on the State minimum wage. Mayor/President Elliott stated policy analysis is missing from this discussion. He added he would like data regarding the impact of lower vs. higher minimum wage and subsidies on the community. He noted a factor would be what types of businesses or companies are being encouraged to relocate to Brooklyn Center, and whether a higher minimum wage will be a deterrent. Councilmember/Commissioner Ryan agreed, adding other factors can come into play, like what other communities are offering, as well as transportation, closeness to freeways, and labor force. He added he would support 150% of minimum wage. Councilmember/Commissioner Graves agreed. Ms. Kvilvang stated higher percentage of minimum wage is not effective as will only provide assistance to high-end development, because it is a significant wage. Councilmember/Commissioner Butler stated she supports 150% of minimum wage. She added she is not in favor of excluding potential developers. Mr. Aarsvold stated wage goals are required by State Statute, but can be addressed on a case by case basis. Mr. Elliott stated he feels uninformed and does not want to set a number with no basis. He reiterated that he would like to see some analysis on this issue before making a decision. Mr. 04/08/19 -4- Aarsvold stated an analysis can be provided that outlines the wage levels in industrial classifications in the region.. He added, however, this will not indicate what prospective businesses might look like. He noted this would be the next step as there is not currently a policy in place, and economic impact is a step beyond the current discussion. Mayor/President Elliott asked whether there is data regarding the types of businesses and companies currently in Brooklyn Center, and whether the same or different types of businesses would be attracted to Brooklyn Center. Ms. Kvilvang stated additional analysis regarding existing local businesses will not indicate what a future developer might be willing to pay as part of a future development proposal, or what the future market will look like. Mayor/President Elliot stated it might be possible extrapolate trends from that data. Councilmember/Commissioner Graves stated she would support moving the discussion forward. She added the City Council can revise the policy as needed. Mayor/President Elliott stressed the importance of making good decisions that impact the lives of Brooklyn Center's residents. Mr. Aarsvold agreed to provide additional analysis as requested by Mayor/President Elliott. Ms. Kvilvang stated property square footage, assessor's values, and comparable properties are taken into consideration when identifying property valuation. She added a minimum assessment agreement is recommended. Mr. Aarsvold stated, regarding "targeted sectors", the City Council indicated areas of focus are corporate campuses; job -producing multi -tenant buildings; sit-down restaurants; and high-tech manufacturing. He added "office use" was not identified and requested clarification. Mayor/President Elliott stated he would support office use as an area of focus. Councilmember/Commissioner Graves stated she would rank "small business" as a higher focus, as office or medical use does not necessarily produce high job numbers. She added, however, she would support office use that supports provision of goods or services related to the City's diverse population and supports a need that is not being served already. Councilmember/Commissioner Ryan stated the sectors that are highlighted are important. He added there are vacant office and warehouse spaces in Brooklyn Center, especially near the former Brown College. He added there are limited resources for addressing those types of uses, but hopefully they can be addressed in the future when the Opportunity Site is thriving. Councilmember/Commissioner Graves stated this priority typically relates to larger scale projects. She asked whether there are sectors that could be targeted for smaller investments. Ms. 04/08/19 -5- Kvilvang stated targeted sectors can bring flexibility providing avenues for small businesses to succeed. She added this is not a priority for many communities. Mayor/President Elliott stated there are many entrepreneurs in Brooklyn Center, and small businesses add a certain flavor to the community. He added small businesses and entrepreneurship should be a priority as they tend to promote economic growth. Mr. Boganey reviewed a recent analysis by Everybody In, that showed that economic growth in Brooklyn Center has increased due to small immigrant businesses with potential for growth in that same sector. He added this further reinforces the argument that there is real value in promoting internal growth of small businesses. Councilmember/Commissioner Butler agreed, adding growth of small businesses and entrepreneurs is very important to her and to the City's economic success. Mr. Aarsvold requested the City Council's input related to development of workforce and affordable housing, as well as high amenity market rate rental property. Councilmember/Commissioner Ryan stated, in his opinion, high amenity market rate housing is an essential priority. He added the City's housing stock of small, aging homes has resulted in decreased financial viability as well as restricted housing choices for prospective buyers. He noted he supports workforce housing, but he also supports high amenity market rate housing as part of the Opportunity Site. Councilmember/Commissioner Graves stated she would want the option to provide market rate housing if it is needed. She added she does not support subsidizing housing that will go to the wealthiest people. Councilmember/Commissioner Butler stated she believes it is important to keep options open when talking about diversifying housing stock. Mr. Aarsvold requested City Council feedback on whether affordable housing as a priority, as opposed to luxury apartments. Councilmember/Commissioner Graves stated, in her opinion, affordable housing is a policy priority. Councilmember/Commissioner Ryan stated, as an example, proposed development at the Jerry's Foods site will have the potential for affordable units for residents who are working at livable wage levels. He added that is not possible for every housing development that comes forward. 04/08/19 -6- Mayor/President Elliott stated development of luxury apartments with amenities is not a priority that is in alignment with what the City wants for its residents. He added housing affordability must be the priority. Ms. Kvilvang requested clarification on the City Council's priority policy for senior housing with services. She added this would include assisted living and memory care. Councilmember/Commissioner Graves stated she believes that availability of senior living may not be a priority. She added she would want to see some statistics related to the amount of senior housing in Brooklyn Center. She noted it would not be necessary to include this as a priority if there is adequate senior housing. Councilmember/Commissioner Ryan stated senior housing has been shown to provide two benefits: a transition for aging residents who want to sell their single-family home and drawing young families into the community. He added that is a strategic goal of senior housing. Councilmember/Commissioner Butler stated it is important to keep senior housing as a priority. She added there is a need for senior housing as the City continues to develop. She noted Brooklyn Center should continue to be considered an affordable city. Ms. Kvilvang thanked the City Council for their feedback and comments. She added their responses add clarity to the process, and she and her colleagues will work with City Staff to provide a draft policy for the City Council's consideration at their May 18, 2019 meeting. Mr. Boganey asked whether other cities have policy language that provides subsidy preference to employers who provide training to local residents, and who focus on hiring local residents. He added that type of incentive is one of the City Council's strategic priorities for resident economic stability. He noted a substantial portion of the City's population is under -employed. Ms. Kvilvang stated that concept can be integrated into the draft policy for the City Council's consideration. BROOKLYN CENTER LIQUOR STORE PROJECT UPDATE (Agenda Item 3) Director of Fiscal & Support Services Nate Reinhardt introduced this item related to proposed construction of the Brooklyn Center Liquor store. He stated site improvement plans and floor plans are near completion although no closing date has been set. He added Gatlin Development has agreed to provide funding of $90,000 for parking lot improvements and completion. He invited Luke Payne of Kimley-Horn & Associates, the project engineers, to address the City Council. 04/08/19 -7- Luke Payne, Kimley-Horn & Associates Engineers, gave a presentation on the proposed Brooklyn Center Liquor Store site plan. He stated the proposed site plan addresses pedestrian elements, including a decorative fence along the east edge of the parking lot, to channel pedestrians to the pedestrian crossing at the building's entrance. He added other enhancements are under consideration to provide additional safety for pedestrians, which is an ongoing challenge for this site. He noted the most direct approach to enhancing pedestrian safety is to reduce vehicle speeds, which will be accomplished with raised crosswalks, signed pedestrian crossings and speed mitigation. Mr. Payne stated another consideration is a reduction of the drive aisle width within the site, although this would be affected by individual private agreements related to the roadway. He added the challenge would be to obtain the necessary approvals, but this option is the most favorable method for reducing traffic speeds. Mr. Payne stated there has been some discussion regarding existing pedestrian movement through the site, and that the majority of liquor store patrons will park to the west and cross via the pedestrian crosswalk. He added some patrons may park to the north and cross through an uncontrolled intersection that is not safe for pedestrians. He noted that intersection is currently used by pedestrians, and an elevated crosswalk could potentially be warranted at that location. He expressed the importance of anticipating where pedestrians currently travel, as crosswalks will not be effective if they are not utilized. Mayor/President Elliott mentioned a flashing light at a previous meeting. Guy yes, that's in here. So optional crosswalk and reduce the drive aisle width. That is a traffic calming measure that works. It forces vehicles to slow down, tighter space. Mr. Payne stated City Staff requested a review of an all -way stop control for all traffic entering the shopping area. He added the site does not meet Minnesota State warrant requirements for an all -way stop control. He noted an all -way stop is not recommended as it would create an imbalance of traffic flow within the site. Mr. Payne stated Rectangular Rapid Flash Beacons (RRFB) are being considered for installation at the raised crosswalk but would only be a viable option if the north crosswalk is installed. He added they are costly at $15,000-20,000 per pair. He noted the Minnesota State warrant requirements for implementation of RRFBs are not met at this site, and in any case, they would not be effective if pedestrians do not use the crosswalk. Mayor/President Elliott asked whether continuously flashing lights are an option. Mr. Payne stated those types of lights are often seen at school crossings and are programmed to flash during certain school hours. He added they are not generally effective because drivers become immune to them. 04/08/19 -8- Councilmember/Commissioner Ryan asked whether a speed bump might be an alternative to a raised sidewalk at the corner near the store's main entrance, although drivers will come to anticipate it. Mr. Payne agreed, adding there are varying opinions on the effectiveness of speed bumps. He added they are a concern for emergency service providers as they slow down access to emergency situations. He noted the intent of raised crosswalks is to draw the attention to the pedestrian crossing locations while still having the effect of a speed bump. Councilmember/Commissioner Ryan asked how much the crosswalks are raised. Mr. Engineer stated existing crosswalks are about 1/2 curb height, or 3 inches. He added the original site detail shows a proposed full curb height or 6 inches. Councilmember/Commissioner Ryan stated that should have some effect on traffic speeds. Mr. Payne agreed, stating raised crosswalks are effective in attempting to control the places where pedestrians cross roadways, which is a big challenge in this area. Councilmember/Commissioner Graves stated she likes the idea of a raised crosswalk. She asked whether there are any other crosswalk signs in the area. Mr. Engineer stated he does not believe there are any crosswalk signs, but that is something that could be considered. Ms. Graves stated that would be less expensive than the flashing lights. Councilmember/Commissioner Ryan stated he is satisfied with the recommendations. Mayor/President Elliott stated the remainder of the presentation related to the building interior could be postponed to a later date in the interests of time. The City Council/EDA agreed. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Graves seconded adjournment of the City Council/Economic Development Authority Work Session at 10:45 p.m. Motion passed unanimously. 04/08/19 -9- 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: 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 April 8, 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 April 22, 2019, Regular Session. hill�4 Barbara Suciu, City Clerk Mike Elliott, Mayor 04/08/19 -10-