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HomeMy WebLinkAbout2019 07-08 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 JULY 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 8:40 p.m. ROLL CALL Mayor/President Mike Elliott and Councilmembers/Commissioners 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, City Attorney Troy Gilchrist, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. LIQUOR LICENSE VIOLATION PENALTY DISCUSSION — Cont'd. Mr. Boganey stated the City Council's discussion on this issue began during the Study Session. He added it was the consensus of the City Council/EDA that license revocation would occur upon the 5 1 violation, within 24 months, for a period that would be the balance of the license but not less than six months. He requested the City Council/EDA's consideration of potential penalty for the 1St 41' violations, and whether a suspension should accompany a fine. Mayor/President Elliott suggested the following penalties: first violation - $500; second violation - $1,000; third violation $1,500; and fourth violation $2,000. He added there should be no suspension for the first violation, but the 2nd violation would warrant a suspension if the violations are the same or similar. City Attorney Gilchrist stated it would be difficult in practice to apply presumptive penalties based on the similarity of the violations. He added he would review this issue and provide further information. He noted, in any case, violations would be reviewed by the City Council/EDA. It was the majority consensus of the City Council/EDA that there would be no suspension for the first violation, and a suspension of 3 days for the second violation. 07/08/19 -1- Mayor/President Elliott stated a suspension equates to a financial penalty, which is significant. He added both Brooklyn Park and Minneapolis do not have suspensions along with their fines, and the City Council/EDA should consider that route up until revocation. Mr. Boganey agreed that suspension is significant, as the assumption would be that the business may be closed during the suspension period. He added employees are therefore penalized along with the business owner. Councilmember/Commissioner Graves suggested 1 -day suspension at the 2nd violation and a 3 - day suspension at the 3rd violation. Mayor/President Elliott wondering why Brooklyn Park does not suspend. In thinking about the financial impact. I would be fine with 1, 2, and 3. Councilmember/Commissioner Lawrence -Anderson stated the City of New Hope has a 30 -day suspension at the 3rd violation, and Golden Valley has 1, 3 and 10 -day suspensions. She added she understands it is difficult for employees and business owners, but it is the City's responsibility to ensure that they are managing their business and training their staff. She noted businesses should be made aware of the financial consequences of non-compliance upon application for a liquor license. Mayor/President Elliott stressed the importance of ensuring that liquor establishments follow the rules. He added this is difficult if violations are not consistent. Councilmember/Commissioner stated Mr. Gilchrist indicated that the City Council/EDA would review violations. She suggested building in discretionary decisions for suspensions. She added she would support a 7 -day suspension for the Ott' violation. Councilmember/Commissioner Butler stated she does not think it will be an issue as there are no cases of multiple violations. Mayor/President Elliott stated business owners look at the alcohol-related policy when considering opening a business in Brooklyn Center or looking at other communities. Councilmember/Commissioner Graves stated there were some changes to the policy around seating requirements and liquor establishments. Made it difficult for businesses to pursue a liquor license. The CC improved it. Councilmember/Commissioner Ryan stated he supports Councilmember/Commissioner Graves' recommendation of 7 -day suspension for the 4th violation. Mayor/President Elliott stated he would support 5 -day suspension for the 4th violation. 07/08/19 -2- It was the Consensus of the City Council/EDA to support 5 -day liquor license suspension for the 4"' violation. Mr. Boganey stated City Staff would provide a draft policy for the City Council/EDA's review. Mayor/President Elliott thanked Dr. Edwards for his hard work and efforts on this item. DELINQUENT UTILITY BILLING ACCOUNTS Finance Director Nate Reinhardt requested City Council/EDA consideration of a process for dealing with delinquent utility accounts. He stated approximately 75% of customer utility accounts are certified to property taxes on an annual basis. He added a cross -functional team of City Staff are reviewing the process and considering changes to the delinquent utility billing policy. Mr. Reinhardt presented a utility cost comparison, including the impact of additional charges on unpaid balances. Mr. Boganey stated 60% of delinquent utility accounts were also delinquent the year before. Mayor/President Elliott stated this might be an affordability issue. Councilmember/Commissioner Graves stated families have to prioritize expenses, and that speaks to affordability. Mr. Reinhardt stated City Staff sends out penalty notices, thus incurring additional administrative costs. He added City Staff believes delinquent charges are much higher than the associated costs. Mr. Boganey stated it is possible that the delinquent charges are due to quarterly billing. He added residents pay monthly bills, and a utility bill every three months might not fit with their budget. Mr. Reinhardt stated 2018 delinquent collections totaled $296,661 or 3% of total utility charges, and $26,460 was collected in related certification charges. He added a modification to the policy for delinquent charges would impact utility revenues. Councilmember/Commissioner Lawrence -Anderson stated she would like to see information regarding the cost that would be associated with changing to monthly utility billing. Mr. Reinhardt stated switching to a monthly utility billing system would not be a cost-effective solution as it is not possible for City Staff to get it done. He added the City's current online system allows residents to set up monthly payments. He and City Staff reviewed other cities that 07/08/19 -3- use Logis software, and Brooklyn Center's late penalty was higher than other communities surveyed. Mr. Reinhardt suggested the following potential City Council/EDA actions: -No quarterly delinquent charges -Increase the certification fee from $30 to $50 -Increase the threshold for accounts to be certified, to reflect that amounts "greater than or equal to $30 for finalized accounts and greater than or equal to $150 for active accounts" would be certified. Mayor/President Elliott stated action is appropriate as resident economic stability is one of the City Council/EDA's key strategies. Councilmember/Commissioner Lawrence -Anderson agreed, adding she supports all three options. Councilmember/Commissioner Ryan stated he supports option 2, but he has questions regarding option 3. Mr. Boganey stated City Staff would provide language modifying the existing policy. He added a public hearing would be required as the potential action would include a fee schedule change. He added the recommendation from City Staff could be included when 2020 utility rates are set. OPPORTUNITY SITE UPDATE AND MORATORIUM DISCUSSION Ms. Beekman reviewed plans to move forward with developing the Opportunity Site. She stated a Master Plan and regulatory framework are being developed so the property could potentially be rezoned or otherwise regulated. She added the Opportunity Site encompasses an 81 -acre area. She noted City Staff is requesting City Council/EDA support for an Ordinance that would impose a moratorium on development until the regulatory framework is completed. Ms. Beekman stated the ban would include subdivisions, re -use of structures, and land use applications, as well as parking or landscaping alterations related to existing previous agreements. She added the City can impose a moratorium up to 12 months and would apply to all property within the Opportunity Site. Councilmember/Commissioner Lawrence -Anderson stated a moratorium would be a way to retain the integrity of the Master Plan for up to 12 months. Mayor/President Elliott asked whether this would hurt the school that recently relocated to a building within the Opportunity Site. Ms. Beekman stated the Interim Use permit for that use expires at the end of 2019. She added classes being held at that location temporarily, during the School District renovations. She noted schools are not a permitted use in that area, and an 07/08/19 -4- amendment was made to accommodate the School District's needs with the understanding that it was a temporary arrangement. Mayor/President Elliott asked whether there are any businesses that would be negatively impacted by the moratorium. Ms. Beekinan stated current discussions are exploratory, and it is difficult to say who would be affected. Mr. Boganey agreed, adding the moratorium would affect current businesses that seek to redevelop their property as well as attracting new development. Councilmember/Commissioner Graves asked whether there is a mechanism for an applicant to appeal the moratorium decision if it is hurting their business. Mr. Boganey stated the moratorium could be lifted at any time during the 12 months. He added the moratorium will not force a property owner to sell but may cause a delay. Mr. Boganey stated the Master Plan would be completed within the 12 -month moratorium period. He added interested third parties would know the vision and goals of the community and what the City is trying to achieve. Councilmember/Commissioner Ryan stated the City owns 32 acres of the 81 acre -site. He stressed the importance of protecting the City's interests in this situation and preventing development that is not in line with the goals and interests of the Opportunity Site. Mayor/President Elliott stated it is a private property that could potentially be sold and developed. Mr. Boganey stated any potential development would need to be in line with City zoning and other regulations. He added it might not be exactly as envisioned by the City Council/EDA, but it would have to be consistent. Councilmember/Commissioner Lawrence -Anderson stated she supports the moratorium. She added similar action was taken by the City Council/EDA a few years ago on the issue of vaping devices. She noted this gave the City Council/EDA time and opportunity to review and amend the Ordinance, which was invaluable. FORMER SEARS SITE DEVELOPMENT STRATEGY AND UPDATE AND DISCUSSION Ms. Beekman stated City Staff are recommending a moratorium on development at the former Sears site. She added this would provide the opportunity to do further study, and consultants have been engaged to assist with this process. She noted the 15 -acre Sears property operates under a Planned Unit Development (PUD) and is adjacent to Shingle Creels Crossing, and it is the last remnant of Brookdale Mall. Ms. Beekman stated the property is unique and not used by the City as it is privately zoned, and the property owner is unwilling to discuss its development. She stressed the importance of 07/08/19 -5- having a vision and goal for the property, for residents and businesses who are interested in what the City has planned. She added City Staff proposes engagement activities with the immediate business owners to receive feedback and comments on what they would vision happening at the Sears property, as well as receive questions and concerns. Ms. Beelcman stated, in terms of potential future re -uses of the site, retail is the most obvious answer, but also something that utilizes transit investment. She added the property is currently in the Central Commerce Overlay District, to which amendments could be made that would prohibit lowest impact uses. She noted City Staff recommends simple modifications to the Central Overlay District or draft a process or approach for redevelopment planning and visioning for the site if there is a consensus from the City Council/EDA. Councilmember/Commissioner Lawrence -Anderson stated the property has great visibility from Highway 100. She added a home improvement store would be perfect for that location. She noted the City does not own the property. Mayor/President Elliott stated many residents had expressed the desire to have a global market. Councilmember/Commissioner Ryan stated he supports recommendations to lift the moratorium. Councilmember/Commissioner Graves agreed, adding she would also support engaging the businesses that are there and getting their feedback. Ms. Beekman stated City Staff had discussed goals for redevelopment, and this potential retail site could compliment the Shingle Creek Crossing PUD. She added non -subsidized private development is preferred, and benefits include connecting the regional trail across the property; providing jobs, creating an attractive shopping area, and potential roadway improvements. She noted low -intensity uses would be discouraged, such as storage units. Mayor/President Elliott stated language should be added that addresses development that supports the needs of the community. He added many residents have said that they do not shop at Shingle Creels Crossing. Ms. Beelunan stated redevelopment at this location would support Shingle Creels Crossing in that it would enhance its usefulness and its ability to be completed and rebuilt. Councilmember/Commissioner Graves stated having requirements regarding what types of businesses can be located in Shingle Creek Crossing is not the best policy. She added Sears had placed many such covenants on the Shingle Creek Crossing property. Mr. Boganey stated Sears was a party to the original PUD that regulated the site, as well as subsequent PUD amendments. He added the developer granted many covenants and restrictions 07/08/19 -6- that were put in place by Sears. He noted the original shared parking agreement between Sears and Brookdale Mall played a big part in that. Councilmember/Commissioner Lawrence -Anderson asked whether a new owner could purchase Sears without consent from or negotiation with the City. Ms. Beekman confirmed this, adding a new owner could lift restrictions or leave them in place. ADJOURNMENT Councilmember/Commissioner Butler moved, and Councilmember/Cormnissioner Lawrence - Anderson seconded adjournment of the City Council/Economic Development Authority Work Session at 10:00 p.m. Motion passed unanimously. 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 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. M Barbara Suciu, City Clerk 07/08/19 -7- Mike Elliott, Mayor