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HomeMy WebLinkAbout2019 09-23 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 SEPTEMBER 23, 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 10:17 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 City Clerk Barb Suciu. Councilmember/Commissioner Butler requested addressing Miscellaneous Items before the meeting is adjourned. Mayor/President Elliott agreed. 1601 JAMES CIRCLE DEVELOPMENT UPDATE Mike Brady, Real Estate Equities, provided an update on development at 1601 James Circle that was presented at Opportunity Zone Challenge. He stated he was interested in pursuing the Brooklyn Center site when the 2017 Opportunity Zones were legislated. He added he has connected with many local community leaders who are now involved in the project, including Tashitaa Tufa. Mr. Brady stated he and his community partners have come up with a system that is getting a lot of traction and has attracted interest from development consultants and investment firms. He added the premise is that if a tenant pays their rent on time every month for six months, the developer distributes half of the profits back to those tenants. He added this system creates a community that will have ownership, want to stay there, and will tell others about it. He noted he and his partners are very excited about the potential success of this model. Mr. Brady stated the developer would enter an option agreement in Year 1 to sell the property to the tenants in Year 10 if they have consistently paid their rent on time. Mr. Brady added he is meeting with Frank Altman from the Community Reinvestment Fund and other similar consultants have contacted him to create a model and move this along and be able to scale the model to other locations. 09/23/19 -1- Mr. Brady stated throughout this process, the power of the community has become very apparent to him. He added he has grown to understand it and wants to be a part of it. He added it is an amazing thing. He noted he had had interest from many community members who want to rent in the building, but he has not gotten to that point yet. Mayor/President Elliott stated he is pleased that there are many immigrant groups involved. He asked whether there has been interest from the Hmong community. Mr. Brady stated he had been focused on the development aspects, but there are many other community leaders and interested parties who will help with developing other relationships. He noted the Hmong community is on the radar. Councilmember/Commissioner Lawrence -Anderson asked whether there are plans to engage the Hispanic community. Mr. Brady confirmed this, adding he has a meeting scheduled with Planning Commissioner Alexander Koenig to talk about that. Mr. Brady presented a depiction of the building's exterior elevation. He added the goal is to commence construction by April 1, 2020, and finish by December 2020. He added he would like to come back to the City Council in November 2019 to discuss incentives and other proposals and bring his partners, who won the contest together. He noted the best part about the contest was the exposure it provided, and the chance to meet many amazing experienced people who can help ensure a successful development. Mayor/President Elliott stated Mr. Brady is referring to the Opportunity Zone Collaborative Summit, which he attended along with Councilmember/Commissioner Ryan and Mr. Boganey and other City Staff. He added he could see that Mr. Brady is serious and sincere about this development concept and the model he is putting together. He applauded Mr. Brady for his efforts. Mr. Brady thanked the City Council and City Staff for the opportunity to bring this idea to fruition. He added he has realized that he stands to benefit the most from this venture, through the new relationships he is forming, and the understanding that he did not have before. Mayor/President Elliott stated this type of development would facilitate the future economic growth of the State of Minnesota. He added by putting the model together, Mr. Brady is ensuring that Brooklyn Center will be able to take advantage of that growth. He thanked Mr. Brady for his presentation. BUSINESS SUBSIDY POLICY DISCUSSION Jason Aarsvold, representing Ehlers, provided an overview of the City's draft Business Subsidy Policy, required by State Statute. He added this type of policy would also provide an opportunity for the City Council to give direction to City Staff about public subsidy and development assistance. Mr. Aarsvold stated the City Council was given homework in April 2019 to provide City Staff and consultants with an idea of what aspects of development and subsidy are important to the 09/23/19 -2- City Council. He added a proposed Business Subsidy Policy was drafted based on that data and is subject to change. Mr. Aarsvold reviewed each of the policy components: purpose and authority; objectives for providing public assistance; public financing principles best practice; desired qualifications; job and wage requirements, which are mandated by State Statute; administration through agreements; and evaluation of requests. Mr. Aarsvold stated the proposed policy might be applied to projects that are not statutorily defined as "business subsidy," of which Housing is a good example. He added the policy is a guideline that can be amended at any time, and every request will require a public hearing and City Council approval. Mayor/President Elliott asked whether there is an issue of precedent within the policy. He asked whether previous agreements would obligate the City Council to approve other agreements. Ms. Beekman stated the rules of precedence that apply in the variance process do not apply to the public subsidy. She added the City has broad discretion when applying subsidy, and there is no obligation for the City to apply it. Mayor/President Elliott stated he does not support subsidizing luxury housing. Councilmember/Commissioner Graves agreed that she would not support subsidies for luxury housing unless it was a component of a larger development project and other needs were being filled. Mr. Aarsvold stated all requests for subsidy would be reviewed by the City Council. Ms. Beekman stated that aspect of the policy is specifically related to the notion of diversifying housing stock and providing types of housing that are not currently available in Brooklyn Center. She added the City Council had discussed a broad range of affordable, market -rate and high-end housing, and as the entire district will be a TIF district. She noted infrastructure would be needed and there will be a gap in the financial model. She reiterated that each application would go through financial analysis. Mr. Boganey stated the issue is not that luxury developments would be subsidized, but rather that the City would be willing to review any development that cannot happen without a subsidy. Ms. Beekman agreed, adding TIF funding might be necessary for a luxury housing development based on the "but for" test. Mr. Aarsvold showed a table that compares the average hourly wage of $21.93 for Brooklyn Center in comparison to peer communities. He added this data is a function of the types of businesses that exist in each City. He noted he does not have industry data available at tonight's meeting. 09/23/19 -3- Mayor/President Elliott stated he would like to review industry data at a Work Session, to look more closely at the local economy and the types of jobs that exist in Brooklyn Center. Councilmember/Commissioner Graves agreed. Councilmember/Commissioner Graves moved, and Councilmember/Commissioner Lawrence - Anderson seconded to extend the City Council/Economic Development Authority Work Session beyond 11:00 p.m. Motion passed unanimously. Mayor/President Elliott stated he would like to know whether there is data on projected growth in certain sectors. He added that information would influence the decisions and direction of the City Council. Mr. Boganey stated another factor that came up is that a large majority of residents of Brooklyn Center work outside of Brooklyn Center. Ms. Beekman agreed, stating there are many employment opportunities in Brooklyn Center, but not necessarily for Brooklyn Center residents. She added City Staff has supporting data regarding work location and salaries. Councilmember/Commissioner Ryan noted the data would reflect the fact that wages are increasing after being static for decades. He added wage increases are driven by demand. Mr. Aarsvold agreed, adding it is not widely dispersed, and in some industry sectors there has not been a growth in wages. Mr. Aarsvold stated City Staff would evaluate each application to determine consistency with the City Council's goals and objectives, and whether there is a need for assistance, and then brought forward for City Council consideration. He added this process gives City Staff and developers a clear idea of what the City Council wants to do and provides data for the kinds of things they want to see in Brooklyn Center. Mayor/President Elliott asked why this policy is required by the State. Mr. Aarsvold stated many cities were extending assistance for projects without any idea of measurable benefit. He added this process provides data to determine the ongoing obligation to meet subsidy goals and to determine how public funding can influence development. Mayor/President Elliott stated the policy could impact the quality of life for residents. He expressed his interest in prioritizing subsidies to certain businesses. Mr. Aarsvold stated this conversation has been helpful to understand the City Council's perspective regarding flexibility in the policy. 00011j7►1u 1 DIN I Councilmember/Commissioner Lawrence -Anderson moved, and Councilmember/Commissioner Graves seconded adjournment of the City Council/Economic Development Authority Work Session. 09/23/19 -4- It was noted that the City Council/EDA had agreed to address Miscellaneous Items before the meeting is adjourned. Mayor/President Elliott and Councilmember/Commissioners Butler, Graves, Lawrence - Anderson and Ryan voted against the same. Motion failed. MISCELLANEOUS Councilmember/Commissioner Butler stated the McCarthys recently spoke during a Public Open Forum at a City Council/EDA meeting regarding their concerns about Highway 252 reconstruction plans. She added she has met with the McCarthys. She requested that they are given an opportunity to present additional information at an upcoming City Council/EDA meeting. Councilmember/Commissioner Butler stated Troy Parker contacted her regarding the 57t" Avenue/Logan Avenue site. She asked whether he could be invited to a Work Session to address the City Council/EDA. Councilmember/Commissioner Graves stated the McCarthys are on an upcoming October 2019 City Council/EDA meeting agenda. Mr. Boganey stated City Staff could provide an update to the City Council/EDA on Mr. Parker and the 57t"/Logan development and the City's position. He added it is an evolving discussion. Councilmember/Commissioner Graves stated a resolution regarding police officer autism response education is being considered at the State level. She requested that the City Council/EDA consider a potential resolution in support of this action. Councilmember/Cormnissioner Graves stated she would get more information from City Staff about switching to a single City-wide trash hauler and a ban on plastic bags. Councilmember/Commissioner Ryan stated organized collection is a difficult subject, and many communities have had issues and complications with a single hauler service. Mayor/President Elliott stated he would support getting more information about single hauler options as many residents have commented to him about it. Councilmember/Commissioner Graves stressed the importance of being better stewards of the environment. Mr. Boganey stated an upcoming Work Session would include a review of environmental issues. He added the single trash hauler issue and plastic bag ban can be addressed at that time. Councilmember/Commissioner Graves stated she could provide a sample resolution supporting the State action regarding police autism response. 09/23/19 -5- Mayor/President Elliott stated the City should also consider banning Styrofoam and other single - use plastics. Mayor/President Elliott asked whether there is an alternative format for serving water at the City Council/EDA meetings. Mr. Boganey stated City Staff would review other options. Mr. Boganey stated Ms. Beekman would send an email request to schedule an Opportunity Site Work Session. ADJOURNMENT Councilmember/Commissioner Lawrence -Anderson moved, and Councilmember/Commissioner Graves seconded adjournment of the City Council/Economic Development Authority Work Session at 11:30 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: 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 September 23, 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 October 14, 2019, Regular Session. i A Barbara Suciu," ity Clerk 09/23/19 -6- Mlke Elliott, Mayor