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Home My WebLink About2019 07-08 CCM Regular SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JULY 8, 2019 CITY HALL — COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Mike Elliott at 6:45 p.m. -POT.T. CAT.T. Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Director of Fiscal & Support Services Nate Reinhardt, Community Development Director Meg Beekman, Police Chief Tim Gannon, City Attorney Troy Gilchrist, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. Mayor Mike Elliott opened the meeting for Informal Open Forum. Harlan Daudt, 6000 York Avenue N, stated he attended a recent City Council meeting to ask questions about Tax Increment Financing (TIF). He added there was no opportunity for public comment at that meeting. Councilmember Ryan stated an issue related to bonds was discussed at the last City Council meeting, which is not technically TIF funding. Mr. Boganey agreed, adding tonight's meeting includes an agenda item related to a TIF district. He added. a decision on a TIF District for the former Jerry's Foods site had not been made. Mr. Daudt stated he had previously suggested that City Staff should mail a notice to all Brooklyn Center citizens when TIF funding is discussed. He added he feels strongly that all residents should receive a notice in the mail. He noted he received a response from City Clerk Barb Suciu. Mr. Boganey stated City Staff had discussed this issue, and it will be brought to the City Council for review and consideration. Mr. Daudt stated he had previously challenged the City Council to talk to their neighbors about whether they want more apartments in Brooklyn Center. He added, in his opinion, Brooklyn Center has enough apartments. 07/08/19 -1- Mr. Daudt asked what the term "workforce housing" means. Mr. Boganey agreed to provide a written response to Mr. Daudt's question in detail. Mr. Daudt asked who owns Jerry's Foods property and whether the City intends to buy it. Mayor Elliott stated the property is owned by the original property owners, and the City does not intend to buy it. Councilmember Lawrence -Anderson moved, and Councilmember Butler seconded to close the Informal Open Forum at 6:55 p.m. Motion passed unanimously. 2. INVOCATION Councilmember Ryan read a quote from President John F. Kennedy's May 25, 1961, Congressional address, in which he expressed a goal of landing an American safely on the moon by the end of the decade. He stated July 20, 2019, is the 50t" anniversary of the 1969 Apollo 11 Moon Landing when American astronauts became the first humans to walk on the moon. He expressed the transformative nature of having a leader who can challenge the nation. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Mike Elliott at 7:00 p.m. 4. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Director of Fiscal & Support Services Nate Reinhardt, Community Development Director Meg Beekman, Police Chief Tim Gannon, City Attorney Troy Gilchrist, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Ryan moved, and Councilmember Lawrence -Anderson seconded to approve the Agenda and Consent Agenda, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. June 24, 2019 — Study Session 2. June 24, 2019 — Regular Session 3. June 24, 2019 — Work Session 07/08/19 -2- 6b. LICENSES GARBAGE HAULERS Ace Solid Waste Allied Waste Services Aspen Waste Systems Inc Farmers Union Industries LLC dba Midwest Grease Randy's Sanitation Inc. MECHANICAL LICENSES A -ABC Appliance & Heating Inc. Air Mechanical Dean's Professional Plumbing Elements Inc. Northern Heating & A/C Inc 6601 McKinley Street NW Ramsey MN 55303 8661 Rendova Street NE Circle Pines MN 55014 2951 Weeks Avenue SE Minneapolis MN 55414 PO Box 319 Redwood Falls MN 56283 PO Box 169 Delano MN 55328 8818 7 1 Avenue N Golden Valley MN 55427 16411 Aberdeen Street NE Ham Lake MN 55304 7400 Kirkwood Court N Maple Grove MN 55369 10044 Flanders Ct. NE #100 9431 Alpine Drive NW Ramsey MN 55303 RENTAL RENEWAL (TYPE IV— one-year license) 3349 49t" Avenue N Isaac Obi 5937 Vincent Avenue N Jack Johnson RENEWAL (TYPE III— one-year license) 6424 Marlin Drive Charles Jing Bright RENEWAL (TYPE Il— two—year license) 4214 Lakeside Avenue James & Gloria Shoultz 6519 Beard Avenue N Jay Vaughn 501 Bellvue Lane Dragon Property Management 6532 France Avenue N Merlin Properties/Chen Zhou/ MSP Homes Rental 5542 Irving Avenue N Douglas Wahl/Cel Monton 5724 Logan Avenue N Konstantin Ginzburg (met mitigation plan) RENEWAL (TYPE I — three-year license) 5235 Drew Avenue N Jay Battenberg 1335 67 1h Lane N Dennis & Shannon Dane 07/08/19 -3- 5442 James Avenue N Gerald Stigsell 6c. RESOLUTION NO. 2019-091 AUTHORIZING THE SUBMISSION OF A BROWNFIELD GAP FINANCING PROGRAM GRANT APPLICATION TO MINNESOTA BROWNFIELDS 6d. RESOLUTION NO. 2019-092 APPROVING AN AMENDMENT TO THE BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION BY-LAWS 6e. RESOLUTION NO. 2019-093 ADOPTING AMENDMENTS TO THE CITY'S CAPITAL PROJECT FUNDING POLICY 6f. RESOLUTION NO. 2019-094 ACCEPTING BID AND AWARDING A CONTRACT FOR MUNICIPAL LIQUOR STORE EQUIPMENT, RACKING & SHELVING 6g. RESOLUTION NO. 2019-095 ACCEPTING BID AND AWARDING A CONTRACT, IMPROVEMENT PROJECT NO. 2018-10, LIFT STATION 2 IMPROVEMENT PROJECT 6h. RESOLUTION NO. 2019-096 RELATING TO A MULTIFAMILY RENTAL HOUSING FACILITY AND THE ISSUANCE OF CONDUIT HOUSING REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO; CALLING FOR A PUBLIC HEARING; ESTABLISHING COMPLIANCE WITH CERTAIN REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO (REE XERXES AVENUE SENIOR HOUSING PROJECT) Motion passed unanimously. 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS -None. 8. PUBLIC HEARINGS 8a. ORDINANCE NO. 2019-02 AMENDING ORDINANCE NO. 2003-22, EXHIBIT A; EXCEL ENERGY ELECTRIC FRANCHISE FEE SCHEDULE Finance Director Nate Reinhardt reviewed proposed changes to Electric Franchise Fee Schedules, amending franchise fee agreements with Excel Energy and CenterPoint Energy. He stated franchise fees, established under State Statute 216b.36, allow cities to impose fees for the 07/08/19 -4- delivery of utilities, to support the maintenance of aging infrastructure. He added the existing fees were established in 2003. Mr. Reinhardt stated City Staff recommends that the City Council hold public hearings and subsequently adopt the Ordinances amending the City's Electric Franchise Fee Schedules. Councilmember Graves requested clarification regarding the necessity of the increase in fees. Mr. Boganey stated additional funds are necessary to offset the costs of street reconstruction projects. Mayor Elliott stated Excel Energy has committed to delivering 80% renewable energy in 10 years. He added, without the franchise fees, street reconstruction project costs would be paid for by taxpayers. Councilmember Ryan stated the amended Fee Schedules would provide revenue of $700,000 for 2019. He expressed his support of the Ordinance amendments. Councilmember Graves moved, and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. No one appeared to address this item. Councilmember Graves moved, and Councilmember Ryan seconded to close the Public Hearing. Motion passed unanimously. Councilmember Graves moved, and Councilmember Lawrence -Anderson seconded to adopt ORDINANCE NO. 2019-02 Amending Ordinance No. 2003-22, Exhibit A; Excel Energy Electric Franchise Fee Schedule. Motion passed unanimously. 8b. ORDINANCE NO. 2019-03 AMENDING ORDINANCE NO. 2003-23, EXHIBIT A; CENTERPOINT ENERGY OPERATIONS FRANCHISE FEE SCHEDULE Councilmember Graves moved, and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. No one appeared to address this item. Councilmember Ryan moved, and Councilmember Lawrence -Anderson seconded to close the Public Hearing. 07/08/19 -5- Motion passed unanimously. Councilmember Graves moved, and Councilmember Ryan seconded to adopt ORDINANCE NO. 2019-03 Amending Ordinance No. 2003-23, Exhibit A; CenterPoint Energy Operations Franchise Fee Schedule. Motion passed unanimously. 8c. RESOLUTIONS NO. 2019-097 AND 2019-098 REGARDING REMOVAL OF A PARCEL FROM REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT NO. 3 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 8 AND APPROVING A TAX INCREMENT FINANCING PLAN Community Development Director Meg Beekman introduced Keith Dahl, Financial Consultant with Ehlers, and invited him to address the City Council. Mr. Dahl reviewed two resolutions for City Council approval, to remove 5801 Xerxes Avenue N from TIF District No. 3 and establish a Housing TIF District No. 8 for this property. He added a public hearing is required. He noted the District would have a 26 -year term. He noted the majority of the TIF would be provided to the developer, Real Estate Equities (REE), in "pay as you go" funds. Mr. Dahl stated the redevelopment project cost is $48.6 million, and the development will generate annual tax revenue of $222,000 for Brooklyn Center. Mayor Elliott requested clarification regarding why the City would take this action. Mr. Dahl stated the resolutions would make it financially feasible for REE to create an affordable housing project. He added the Twin Cities rental housing market is underserved. He stressed the importance of providing an option for affordable housing for Brooklyn Center's residents. Councilmember Lawrence -Anderson moved, and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. Barbara Jensen, 6539 Drew Avenue N, asked whether there is any assurance regarding maintenance of the development. She added she supports the development as it will provide affordable housing for residents of Brooklyn Center. She asked whether the developer had considered the option of adding 3 -bedroom apartments. She asked whether there will be adequate parking for the site, but still, allow space for outside areas that residents can enjoy. Ms. Jensen thanked the City Council for their consideration of REE's requests, as the project will be a positive development for the City and provide affordable housing for families and seniors. 07/08/19 -6- Tim Haraldson, 1207 72"a Avenue, asked whether the use of TIF funding will delay repayment to the City. Mr. Boganey stated the first partial payment would be received after construction begins and full payment after construction is complete. Community Development Director Meg Beekman stated the project would be constructed to market rate standards. She added the costs of construction are extremely high, and financial tools such as TIF are necessary to finance the project. She noted residents must qualify for workforce housing. Alex Bisanz, representing Real Estate Equities (REE), stated the income ranges used for this project is based on the AMI, which is in line with Brooklyn Center's average household income. Ms. Jensen stated she supports the development, as it offers viable new housing for families, very much the same way that she and her family chose to live in Brooklyn Center many years ago. Councilmember Lawrence -Anderson stated she had previously requested consideration of a security camera at the playground area. Mr. Bisanz agreed to that request. Ms. Beekman stated the income levels that are used are the highest income amounts of those that would qualify for the apartments. Mayor Elliott asked whether there is a lower limit. Ms. Beekman stated there is a minimum threshold income. Mr. Bisanz agreed, stating he is unsure of the amount but agreed to make that information available to the City Council. Mayor Elliott asked why the project is not possible without TIF funding, and whether REE has been creative in pursuing other funding sources. Mr. Bisanz stated construction costs are increasing every year, and there is a shortage of general contractors who are capable of doing these types of projects. He added all tax credit developments require TIF funding. He noted this type of funding is only distributed twice a year, and a limited number of bonds are allocated to affordable housing projects at the State level. Harlan Daudt requested clarification regarding the total project cost, which is listed at $38 million in a memo dated February 11, 2019. Ms. Beekman stated the total construction cost is close to $60 million, but the development is being split into two separate projects for the bonds. She added the memo stated that senior projects are subordinate to workforce housing. She noted the developer is requesting more than the amount they require, anticipating that they will receive approximately 50% of their requested funding. Mr. Daudt asked when the bonds will expire. Ms. Beelnnan stated they are 30 -year bonds. Councilmember Ryan moved, and Councilmember Graves seconded to close the Public Hearing. 07/08/19 -7- Motion passed unanimously. Councilmember Lawrence -Anderson moved, and Councilmember Ryan seconded to adopt RESOLUTION NO. 2019-097 Regarding Removal of a Parcel from Redevelopment Tax Increment Financing District No. 3. Motion passed unanimously. Councilmember Graves moved, and Councilmember Ryan seconded to adopt RESOLUTION NO. 2019-098 Establishing Tax Increment Financing District No. 8 and Approving a Tax Increment Financing Plan. Motion passed unanimously. 9. PLANNING COMMISSION ITEMS -None 10. COUNCIL CONSIDERATION ITEMS -None. 11. COUNCIL REPORT The City Council agreed to forego Council Reports in the interests of time. 12. ADJOURNMENT Councilmember Lawrence -Anderson moved, and Councilmember Ryan seconded adjournment of the City Council meeting at 8:22 p.m. Motion passed unanimously. 07/08/19 -8- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Cleric of the City of Brooklyn Center, Minnesota, certifies; 1. That attached hereto is a full, true, and complete transcript of the minutes of a Regular Session of the City Council of the City of Brooklyn Center held on July 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 July 22, 2019, Regular Session. Barbara Suciu, City Clerk 07/08/19 -9- Mike Elliott, Mayor