HomeMy WebLinkAbout2019 07-01 CCM Special Work SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE
CITY OF BROOKLYN CENTER IN THE
COUNTY OF HENNEPIN AND STATE OF MINNESOTA
SPECIAL WORK SESSION
JULY 1, 2019
CITY HALL — COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council Special Work Session was called to order by Mayor Elliott at 6:30
p.m.
ROLL CALL
Mayor Mike Elliott, Councilmembers Marquita Butler, April Graves, Kris Lawrence -Anderson and
Dan Ryan; City Manager Curt Boganey, Community Development Director Meg Beekman, Public
Works Director Doran Cote, Business and Workforce Development Specialist Brett Angell; Haila
Maze, Bolton & Menk; Bob Lux, Chris Osmundson, David Dredsner, Jessa Lux, Ashley Bisner from
Alatus, LLC; Damaris Hollingsworth, Architect with Design by Melo; Andrew Dresdner,
Cunningham Group Architecture; and Stacy Kvilvang and Keith Dahl, Ehlers & Associates.
REVIEW OF OPPORTUNITY SITE
Community Development Director Meg Beekman thanked all the attendees. She added this is an
opportunity to check in with the City Council regarding the Opportunity Site development, although
input is still being collected. She noted the group could come back together over the next few
months to continue the conversation, which is in its beginning stages.
Ms. Beekman provided a review of the property. She added the EDA had acquired significant
portions of the properties because of the state of the market and reduced property values. In
February 2018, developers were invited to present concepts for the property, and Alatus was
selected. A Preliminary Development Agreement was signed in April 2018 and renewed in April
2019. Renewal of the PDA solidified the partnership with Alatus and created a unique relationship
with a team of consultants led by City Staff and supported by Alatus.
Ms. Beekman stated the property had been re -designated by the recently adopted Comprehensive
Plan as Transit -Oriented Development (TOD) and Mixed Commercial. Both of these zoning
districts are mixed-use and encourage high-density uses. The TOD is a pivot for the city, embracing
transit and multi -modal approaches, taking into consideration accessibility for future generations.
She added this is something the City does not currently have, and it can be difficult to picture what
this change will look like in Brooklyn Center.
Ms. Beekman stated this is the first phase of the engagement process, and consultants, including
Haila Maze, will provide information about plans for the next steps. A series of workshops in
partnership with the developer was used as a jumping-off point for getting ideas and
recommendations for how to broaden the engagement outreach.
Ms. Beekman stated Ms. Maze met with the City's Multi -Cultural Advisory Committee to talk about
what is important to them. She has also had conversations with multiple local groups, including a
pop-up information booth at the Community Health Fair and Earle Brown Days, which was a great
opportunity to engage with residents and families and provide information.
Haila Maze, Bolton & Menk, stressed the importance of identifying priorities for different groups
within the City of Brooklyn Center. Many residents have expressed a desire for a gathering place for
families, a welcoming outdoor space, and a place to feel that they belong and are part of the
community. Attractions and amenities should be accessible and affordable and build upon the City's
cultural diversity. Ideas include businesses, shops, and entertainment that looks like the residents
who live and shop here.
Ms. Maze stated major roads hem in the property, and it will be important for residents to feel that it
is accessible and connected to surrounding neighborhoods. Residents have expressed these goals of
affordability, diversity, welcoming, supporting health and wellness, and fiscally responsible in terms
of investment and property. There should be a benefit to residents who are here right now, and the
development should be something residents can be proud of, a source of community pride.
Bob Lux, representing Alatus, stated the series of workshops provided a checklist of items that
Alatus is trying to achieve, and every item was on -target in terms of what they are looking to deliver.
The concept has evolved into retail, housing, a movie theater, and true park and recreation activities.
He added both Hy -Vee and Target were approached as anchor tenants, but their independent
research led them to the conclusion that Brooklyn Center is not a strong retail market. He noted it
became clear that the site would need to be branded in a different way to attract major investment.
The concept was expanded, and a unique relationship was the result of the last 6-8 months of work
on the project. The original concept is still valuable, but phasing will change to make a bigger
impact in the long-term.
Mr. Lux stated Emagine Theatres wants to be on the site, and they are very enthusiastic about the
development plans. The Main Street concept was developed, with sustainable design, a multi-
cultural center, and walkable/bikeable living community with outdoor recreation/family activity area
between the freeway and housing. There are discussions with a potential anchor use for the outdoor
activity site, which would be extraordinarily transformative to the site, the community, and this part
of the Twin Cities area.
Mr. Lux stated the potential outdoor activity site would be a regional attraction and is being pursued
due to the success of TopGolf, which has benefited from great accessibility and visibility.
Mr. Lux stated the developers are meeting with retailers on the current site, including Davanni's, the
restaurant supply store, which needs a larger facility and is in a good position to look for a different
site. He added Kmart is under contract to purchase.
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Mr. Lux stated the housing portion of the development would be a mix of senior housing, market -
rate, and affordable apartments as well as rental townhomes and for -sale townhomes. He added
there had been discussion regarding single-family homes, and there may be a need for some of that
type of housing, but right now the vision is for high-density development.
Councilmember Butler asked whether the mix of apartments prices would be in one building or
separated into multiple buildings. Mr. Lux stated that it had not been decided, but a market -rate
development would probably be a separate building with the highest possible amenities. He added it
would be necessary to establish the market and start with market -rate apartments first.
Councilmember Ryan stated he supports the concept of establishing the market, the developer's
concept is sound, and this is the direction the City should take. He added residents had been
frustrated with the lack of retail, services, and amenities in the City.
Andrew Dresdner Cunningham Group, then presented the master plan, including a checklist that ties
together the City's policies with Alatus' vision for the development. He added the task is to create a
plan that feels like Brooklyn Center, for the residents that live here now, but also a place that is
fiscally sound and responsible, efficient, and safe. He noted the master plan must satisfy all those
requirements.
Mr. Dredsner stated the master plan is a document that identifies a long-term vision for a site. The
master plan will seek to align infrastructure with private investments and identify how investments
should and can contribute to the improvement of and be a benefit to the community. The master plan
sets the partners on a direction toward a place, but it is not a description of how to get there,
providing direction but also flexibility.
Councilmember Graves requested clarification regarding the two items before the development
agreement, one of which is the AUAR. Mr. Dredsner stated the development agreement, and AUAR
ties Phase 1 and the master plan together, as they are being considered concurrently.
Ms. Beekman stated AUAR, or Alternative Urban Areawide Review, is the environmental analysis
of the site, and the alternative to an environmental worksheet.
Mr. Dredsner stated the goal is to move toward calling the area something like "downtown Brooklyn
Center." Downtown areas generally have multiple overlapping uses, starting with housing, which is
the concept of building a neighborhood. It is off -set with local and regional access, so the market is
bigger than just the local area. Connecting the downtown area to the local fabric is critical.
Mr. Dredsner stated the site already has an abundant infrastructure. There are many assets near the
property — neighborhoods, amenities, the government center, Earle Brown Heritage Center, the
library, and Centennial Park. The idea is to create a new crossroads in the middle of the site
connecting neighborhoods on the east through the site to Centennial Park and the library on the west
and connecting transit to Earle Brown Heritage Center from south to north.
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Mr. Dredsner stated the site would have a stormwater feature through the site providing areas for
recreation and for residents to get outside and enjoy open space. The regular grid of streets would be
scaled for walking and driving, and the south and north neighborhoods will have a wide range of
housing options. Small parks will be located within each neighborhood, and Three Rivers Parks
District has expressed an interest in developing a 1 -2 -acre park on the site.
Mr. Dredsner stated retail would be on the main street, mostly small-scale businesses and restaurants.
There is potential for a grocery store, and Metro Transit is interested in moving their transit hub onto
the site, coupled with a park, and ride, which would help support the development of the site.
Mr. Dredsner stated the developers had had discussions with Minnesota Department of
Transportation (MnDOT) regarding a regional trail connection through the site, bringing the Twin
Lakes Trail and connecting to Centennial Park.
Mr. Dredsner stated the streets in the site would be approximately 250-350 feet long with flexible
designs so any block can take multiple types of buildings, depending upon the market. There will be
some townhomes and taller buildings. The main street will be a 2 -block stretch, with some retail but
also a street for people to gather.
Mr. Dredsner stated the development would be tied into the regional stoimwater system, and the
Watershed District is involved in this planning process. It is hoped that the site can be integrated
with Shingle Creek in ways that are environmentally responsible. An extensive greenway system
will run through the entire site, and a central component, an open park, would be a regional
destination, hosting community and regional events. The trails system will help leverage all the
amenities on the site.
Mr. Lux stated housing would be approximately 1500 units initially, and then up to 2500 units as the
project develops. He added a grocery store is being sought as an anchor for the site. Several of the
users are currently on the site, and the goal is to keep them on the site. He noted the property that
Panera is in had traded hands in the past few years, and the owners had not anticipated that Target
would leave, so they are interested in discussing their options.
Mr. Lux stated the federal Opportunity Zone designation created financing opportunities without
which the development would not be feasible. He added the timing is good for this type of funding,
and the development team wants to get the master plan solidified within the next 2-3 months, get
some major tenants on board including the movie theatre, and get the first housing units underway.
Hopefully, the grand outdoor activity feature will be underway in 2020. The business plans must be
completed, and funds escrowed in 2019 to get the greatest benefit from Opportunity Zone funding.
He noted all the components that have been discussed thus far are viable.
Councilmember Butler asked whether the development would influence school capacity, with the
additional housing that is being planned. Mr. Lux stated that it is unclear, but there will not be a big
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increase in children in the area, as Brooklyn Center already has a large variety of affordable single-
family homes.
Ms. Beekman stated there is an open enrollment factor that the School District can use to determine
the availability of space. She added the School District is very welcoming and excited about the
development, as the increased tax base will have a strong impact on the School District's ability to
leverage resources.
Mayor Elliott asked whether there is data available related to rents for the proposed apartments. Mr.
Lux stated rents would be approximately $1,400-1,500 for t -bedroom units, upper $1,000's for 2 -
bedroom units, and low to mid $2,000's for 3 -bedroom units.
Councilmember Ryan stated, about naturally occurring affordable housing in Brooklyn Center, many
older residents may want to sell their homes and live in rental units, creating more housing for young
families.
Ms. Maze stated a concern that residents have raised is whether an increase in property values would
make the City less affordable for residents. She added increased property values could be a benefit
for residents who own their homes.
Mr. Lux stated, about market timing, creation of the master plan is critical due to imminent
opportunity and chance to make something happen, with an increase in investment and interest in
urban living.
Mr. Lux stated there had been concern about increased traffic that would result from the
development. He added any proj ect like this would have an increase in traffic, which can be handled
responsibly. He added this area has excellent access to interstate and highways, which is a benefit.
Mr. Lux stated the site is not pristine, and another benefit is the opportunity to make something
better and improve environmental aspects of the site. He added the Watershed District is interested
in the site, and ways that local and regional environmental interests can be served and improved.
Ms. Beekman stated the next phase is the completion of the AUAR, which covers the entire
development, including traffic, water quality, noise levels, historic elements, soil conditions, and
stornwater issues. Once completed, the AUAR would allow each phase of development to go
through without additional environmental review, provided it was within the development scenarios
indicated within the AUAR, which is specifically designed for this type of planning. The AUAR
must be completed before development can proceed.
Ms. Beelcrnan indicated the next phase of community engagement include a community-based task
force, with members who will be identified that have been and will be impacted by the development
site, and stakeholders that can support the process over an extended period. She added these
community partners would co -create the engagement process and facilitate ways of giving
information and receiving feedback. Ideas include pop-up events, a community Open House,
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continued meetings with Commissions and Committees, and workshops with Brooklyn interns to
solicit their input. A demonstration project is being considered with Hennepin County's Open
Streets program to look at connections to the surrounding communities.
Councilmember Butler stated National Night Out would be a good opportunity for the City Council
to do some outreach, as they go to different parties with Police Officers, making multiple stops and
talking to dozens of residents. She added City Staff could provide a brochure of information for the
City Council to give to residents.
Councilmember Graves agreed, adding the City Council has done that with the "Becoming Brooklyn
Center" flyers in the past.
Councilmember Graves stated she would like to hear more consideration of ways to make Brooklyn
Center more of a green city and be stewards of the environment. She added that it would be
something that a lot of residents could get excited about. She stressed the importance of including a
narrative that is reflective of residents' environmental sustainability interests.
Councilmember Graves stated she supports the idea of a multi -cultural marketplace. She added she
realizes this is the concept stage. She asked what a marketplace would look like, and why this would
be a good location for that kind of use.
Mr. Dredsner stated the "marketplace" concept addresses the lack of sustainability that regular retail
spaces often experience. A marketplace provides the opportunity for locally owned businesses and
incubators to have a retail space but only pay rent to the management company, without risk of the
real estate tax and common area maintenance. The concept is flexible, and the marketplace can
change every year, or as needed.
Councilmember Ryan stressed the importance of being mindful of the critical deadlines coming up.
He added the project would not be feasible without the Opportunity Zone incentives. He noted the
developer has indicated that a financial plan must be in place by the end of the year, and a lot of
pieces need to be in place for that to happen.
Mayor Elliott stated there are somewhat competing outcomes and many things that need to be
balanced in this process. He added this is an important opportunity to bring something valuable to
the City with many benefits, but it is challenging to do a development project of this size. He
stressed the importance of ensuring that the development will meet the needs and reflect the diversity
of the community and ensure that the effort is meaningful and significant. He added Minnesota's
growth in the coming years will come from communities of color, and the City is well placed to
make meaningful change in this regard. He expressed concern about the timeline and ensuring that
the community is fully engaged. He urged everyone to think of innovative and unique ways to
achieve the necessary goals.
Councilmember Ryan stated the City Council had discussed the gentrification of the area, and the
necessary changes the City will go through to make this redevelopment and rebirth a success. He
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stressed the importance of doing whatever is necessary to accommodate the needs and interests of all
of Brooklyn Center's residents.
Councilmember Ryan stated the owners of the Lux Apartments have said that they are surprised and
excited by the diversity of residents in their building, paying premium rents. He added these
residents want to stay in their community, and they are attracted to the idea of living in a diverse
luxury building. He noted that is the path toward sustainability, and to focus only on those who are
here is misguided.
Councilmember Graves stated gentrification has reverberating effects. She stressed the importance
of finding the right balance and continuing the work of community engagement. She added she feels
the work that has been done so far is reflective of the community. She reiterated her belief that the
environmental component should be a big factor. She noted there is a need for "move -up" housing
in the community, and that will be an asset to the project, but affordable housing is also necessary.
Councilmember Graves stated she is excited about what has been presented so far, and she hopes the
Task Force will be instrumental in keeping the momentum moving forward.
Councilmember Butler stated she too is very excited about what has been presented at the meeting.
She added she was concerned about lack of involvement during the workshop series, although it got
better by the last workshop, and she appreciates all the efforts by City Staff and the consultants to
make the workshops a success. She stressed the importance of involving the cormnunity in every
step of the process.
Councilmember Butler stated she feels there should be attractions and recreational areas that
everyone can afford. She added, however, she also supports having amenities like TopGolf for those
who can afford it. She noted residents often have to leave Brooklyn Center to find those types of
amenities.
Councilmember Butler stated the developer had mentioned a mix of retail that would be like a global
market. She requested more information on that concept.
Chris Osmundson, Alatus, stated that type of use has taken off, and an appropriate model would be
Minneapolis' Midtown Global Market. He added other cities had created this type of marketplace,
which incorporates local businesses with a management component. Grants and sponsorship can be
facilitated during the establishment of the marketplace model.
Councilmember Butler asked whether the downtown area would be more of an upscale area, and
how businesses are found for downtown. Mr. Osmundson stated the market would dictate that, but
the idea is to have multiple uses that complement each other, so the downtown area is busy
throughout the day and into the evening.
Mr. Lux stated it is vitally important to create a brand around the whole area so that retail and
commercial uses will seek out the development as it progresses. He added, about the marketplace
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concept, this model reduces barriers of entry for new businesses, creating opportunities for a start-up
without much capital. He added a management company would do the work of engaging these
businesses.
Mr. Lux stated, regarding the movie theatre, it would be located on top of the global market, to
densify the area as much as possible. He added it could be situated with the parking garage, so the
ramp serves the entire area and improves overall connectivity.
Ms. Beekman stated housing is only one component of the site, and there is a list of regional drivers
that could bring people to the site, related to the private sector. She added, from a public sector
standpoint, a new City Hall is proposed to be located on the site. She noted she repeatedly hears
within the community that there is a great desire to have a multi -cultural center, and City Staff and
the developer are exploring the next steps to be taken for developing that concept. A multi -cultural
public space, managed by the City, could be an important anchor for the entire site.
Councilmember Lawrence -Anderson stated she supports everything she has heard so far. She asked
whether pets will be allowed in public spaces and if there will be a dog run or pet -walking area. Mr.
Lux confirmed this, adding that it is a very important component for many residents who have pets.
Councilmember Lawrence -Anderson expressed concern about moving the transit hub into the site,
based on the problems that have occurred at its current location.
Mr. Lux stated the development team has met with Metro Transit many times on this issue. He
added the current location is very isolated, and it is believed that a busy, open area will be a better
location for the transit hub, where it can be part of the larger system, and bring people to and from
the site.
Councilmember Ryan stated he supports the comments of his colleagues and appreciates all the hard
work that has been done so far. He added the site has the potential to evolve into a maj or downtown
area, with its intersecting roadways that are vectors for commercial or mixed-use spaces that leverage
one another, and easy walkability.
Councilmember Graves asked whether cormnunity outreach has been done at the summer Saturday
markets. Ms. Beekman stated information was available at Earle Brown Days and will be available
at the market on Saturday, July 6, 2019, and the next Saturday market. She added Hennepin County
is planning to bring their Active Living Team, who are interested in looking at connectivity on the
site. An event is planned at CEAP's Friday Farmer's Market as well, and there are many other
opportunities for community engagement. She noted Ms. Maze had created an interactive tool that
allows people to select components that are important to them.
Ms. Beekman stated she is working with Mr. Angell on developing a program to build capacity for
local businesses. She added the program would focus on engaging with local business owners to
identify their needs over the next 2-3 years, so they are ready to be successful in this development.
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Councilmember Graves expressed concern regarding the timing of the project. She added the AUAR
takes nine months to a year and must be completed before anything else can happen. Ms. Beekman
stated the AUAR could be started immediately. She added it is a substantial commitment.
Ms. Beelanan stated the regional recreation use would have a significant impact on traffic
generation, so to some degree, it is necessary to understand who the tenants will be. She added
proposals had been received from a few consultants and the development team is ready to move
forward.
Councilmember Graves asked whether there is any concern that the AUAR will reveal something
that is not included in the development agreement and whether it would be necessary to build in
unforeseen circumstances. Stacy Kvilvang, Ehlers & Associates, stated nothing unusual typically
comes up with the AUAR that has not already been anticipated.
Mayor Elliott asked what the developer's period is for moving forward. Mr. Lux stated the
development period is 10-15 years, although a large portion could happen very quickly. The initial
phase of 300-400 housing units, as well as marketplace, theater, hotel, and recreational facility all,
could happen within 3-5 years. He added opening new amenities would encourage more demand for
housing.
Mayor Elliott asked whether there is a competing interest in terms of balancing affordability with the
market rate. Mr. Lux stated he sees that as a strength of the project, that the City embraces diversity
and income on every level. He added diversity of income is the main component of this
development, and it is the best solution for the City of Brooklyn Center.
Ms. Kvilvang stressed the importance of flexibility in timing and scheduling, and in having
confidence in the City's partnership with the developer, which is a leap of faith together. She added
the concept plan would change over time, and the City should be prepared to go with the ebb and
flow over the next 10-15 years as the site is developed.
Ms. Kvilvang commended Ms. Beekman for her hard work and efforts in balancing this process.
She added the developer is forward -thinking and has expressed their commitment to and concern for
the community.
ADJOURNMENT
Councilmember Lawrence -Anderson moved, and Commissioner Ryan seconded adj ournment of the
City Council Work Session at 8:36 p.m.
Motion passed unanimously.
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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, hue, and complete transcript of the minutes of the Special Work Session of the
City of Brooklyn Center held on July 1, 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 August 12, 2019, Regular Session,
City Clerk
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Mayor