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HomeMy WebLinkAbout2020 02-10 CCM Study SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION FEBRUARY 10, 2020 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Milce Elliott at 6:00 P.M. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, and Dan Ryan. Councilmember Kris Lawrence -Anderson was absent and excused. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Assistant Director of Community Development Jesse Anderson, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Ryan requested the following correction to January 27, 2020, Regular Session; -Page 2, paragraph 6, 1st sentence should read "Councilmember/Commissioner Ryan stated projected rents for the proposed apartment building are not very different from other apartment rents in Brooklyn Center, except for the 3-bedroom units, because there are too few of those in the City to make the comparison." Mr. Boganey stated Councilmember Kris Lawrence -Anderson notified City Staff that she is unable to attend tonight's meeting. Mr. Boganey stated a copy of the revised Work Session agenda has been provided for the City Council, with 2 agenda items removed as the presenter is not available to attend tonight's meeting. He added these items will be addressed at the City Council's next meeting. MISCELLANEOUS MEETING WITH REPRESENTATIVE ILHAN OMAR Mr. Boganey stated Congresswoman Ilhan Omar has requested a meeting with the City Council. He added the originally proposed date was February 18, but she is no longer available on that date. He added the Congresswoman's staff is proposing anew date of February 25, 2020, at 5 *30 p.m. 02/10/20 -1- It was the majority Consensus of the City Council to approve the date of February 25, Mu, for a meeting with Congresswoman Ilhan Omar at 5:30 p.m. XFINITY RIBBON -CUTTING CEREMONY Councilmember Ryan stated he received a request to attend aribbon-cutting ceremony at the Xfinity Store at Shingle Creek Crossing from 8:00-9:00 a.m. on Thursday, February 23, 2020. He asked whether any other City Councilmembers would be attending. Councilmember Butler stated she is unable to attend due to work obligations. Mayor Elliott stated he is unable to attend the ribbon -cutting, as he has a Cable Cormnission meeting that morning. Councilmember Ryan agreed to attend the ribbon -cutting ceremony on behalf of the City Council. TWIN CITIES SOCIAL COHESION INITIATIVE Councilmember Butler stated she has met with Twin Cities Social Cohesion Initiative about working with the Brooklyn Center City Council on issues related to humanizing the decision - making process, including policymaking, community and civic concerns, and effective community engagement. She added the Initiative is currently working with several other local cities and is interested in engaging with the City Council because of the City's changing demographics and new and on -going development projects. She noted she would forward the documents they have provided for distribution to the City Council for review. The City Council agreed. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS CDBG FUNDING ALLOCATION DISCUSSION Deputy Community Development Director Jesse Anderson reviewed the City's proposed allocation of CDBG funds for 2020. He added CDBG funding, provided by the U.S. Department of Housing and Urban Development and allocated by Hennepin County, is intended to address blight in the community and meet other urgent community needs. He noted 70% of the expenditure must be allocated for activities benefitting low or moderate -income persons. Mr. Anderson stated the City must seek prior permission if the funding is to be diverted to new or different uses. He added Hennepin County determined in 2018 that the public service allocation would be pooled and determined by a Committee. He noted each City must provide a representative to this committee, and Mayor Elliott has been contacted regarding that role. 02/10/20 -2- Mr. Anderson stated 2019 allocation included $75,000 for Code Enforcement activities and neighborhood revitalization, and $50,000 for the new down payment assistance program, with remaining funds of $132,000 dedicated to the Hennepin County Home Rehabilitation Program. He added 2020 funding is estimated at $258,000 but not fully guaranteed at this point. He noted City Council approval is required by Hennepin County via Resolution if any adjustments are to be requested. Mr. Anderson stated City Staff reviewed possible funding options including direct affordable apartment assistance, similar to a program in Brooklyn Center that supports naturally occurring affordable housing. He added the costs of these types of programs are very high which limits the number of recipients to 1 or 2 properties per year. He noted funding for infrastructure improvements could be used by low-income residents for public facilities, which would trigger fair wage requirements resulting in a large amount of paperwork. Mr. Anderson stated the possibility of small business entrepreneur funding has been considered and discussed with Hennepin County representatives. He added that type of fund results in excessive reporting and monitoring requirements. He noted City Staff feels that the Economic Development Authority (EDA) funding would be a better source for entrepreneurial support. Mr. Anderson stated the City Staff s recommendation for 2020 CDBG funding is to discontinue the use of the funds toward code enforcement activity, which would increase the homeowner's down -payment assistance program, and home rehab program. He added the public hearing has been scheduled for February 24, 2020, during the City Council's next meeting. He requested the City Council's feedback and comments about what types of recommendations should be included in the Resolution to be prepared by City Staff before the public hearing: increase funding for homeownership assistance program and home rehab programs, and remove code enforcement funding, and any other programs the City Council might want to consider. Mr. Anderson stated the funding allocation requests must be submitted to Hennepin County by February 28, 2020. Revision to City Council Agenda Mayor Elliott requested the addition of the following Regular Session Agenda Item: -Council Consideration Item 10a. Appointment of City Councilmember to serve on the CDBG Allocation Board It was the majority Consensus of the City Council to add the Agenda Item to the Regular Session Agenda. CDBG FUNDING ALLOCATION DISCUSSION —continued 02/10/20 -3- Mayor Elliott asked for additional information regarding the home rehab loans. He stated the report shows that 3 projects were completed and 1 loan approved between October — December 2019, and $50,000 spent. Mr. Anderson confirmed this, adding some loans are still being processed. He added allocations are extended but there is a waiting list for the rehab program. Commissioner Ryan stated the City has used most of the total allocation for coded enforcement efforts. He added the proposed CDBG funding changes will result in a change in the City's code enforcement budget. Mr. Anderson confirmed this, adding approximately $150,000 has been allocated for code enforcement since 2009 when there were high numbers of home foreclosures. Councilmember Graves asked whether that level of code enforcement funding is still necessary. Mr. Anderson confirmed this, adding Code Enforcement Officers also do rental inspections, and a part-time Code Enforcement Officer has been added for 2020. He added the expenditures for code enforcement activities should stay the same Mayor Elliott asked about the contract with the Center for Energy and Enviromnent for the administration of the downpayment assistance program. Mr. Anderson stated a grant is in place with the Center to administer loan origination for that program. He added the City has had other similar agreements with the Center for Energy. Mayor Elliott stressed the importance of setting up a reporting mechanism with this sub- contractor, so the City can keep track of the people who are being served, and how the money is being spent. Mr. Anderson stated there are requirements for this type of funding, and applications are reviewed to ensure residents meet these requirements. Mayor Elliott stated funding for the rehab program appears to be approximately $17,000 per project, based on the 2019 allocation of $102,000. Mr. Anderson confirmed this, adding these types of large projects are typically high in cost, involving the replacement of appliances, roofs, and siding. Mayor Elliott stated, on apex -person basis, the down payment assistance program would help ore individuals than the rehab program. Mr. Anderson agreed although they support two very Efferent types of services. Mr. Elliott stated he would like to see analysis between the two programs, down payment assistance and rehab expenditures, before determining allocation levels. Mr. Anderson stated it is difficult to provide analysis as the downpayment program has not officially started, and data will not be available until the end of 2020. Mayor Elliott stated comparative programs in other cities within our region could be reviewed to give some idea of how fast the money goes in those programs. 02/ 10/20 -4- Mr. Anderson stated the rate at which funding is expended depends upon the County's ability to process requests. He added all cities have waiting lists, and funds will always get expended, but they are slowed down by staffing levels at the County level. Mayor Elliott again requested an analysis of the difference between the two programs to be reviewed by the City Council. Councilmember Ryan stated the City's successful incentive sale program funded tlu•ough TIF funds gave prospective buyers gave a $10,000 forgivable loan if they bought a home on the city's list of foreclosed properties. He added the housing market is strong and to offer that type of program would be unnecessary, and people are more likely to renovate and repair homes in the current economy. He noted this type of loan program is a great way to bring local residents into homeownership within the community. Councilmember Graves stated she received a similar loan when she bought her home in Brooklyn Center, and the program made it easier for her as she was a first-time homebuyer. She expressed her support for this type of program, although she would make a decision until after the first year when the City Council has an idea of how many applicants there might be. She stated the requirements may need to be revised. She added she would like to see information about how the direct affordable apartment assistance program is working in Brooklyn Park, which could have a positive impact on many residents who live in rental properties. Mr. Anderson stated the City had an apartment assistance program in 2008, with funding to Crest through the CDBG fund. He agreed to find out more information about Brooklyn Park's apartment assistance program. Mayor Elliott requested the terms of the funding that was provided to Crest. Mr. Anderson agreed to look into it. Mr. Anderson requested clarification from Mayor Elliott regarding his earlier request for information and analysis on the downpayment assistance and home rehab programs respectively. He asked whether Mayor Elliott is asking for an analysis of different allocation amounts. Mayor Elliott stated he is interested in the possibility of increasing the downpayment assistance program, but also analysis between the two programs. He added he would like to determine a projected number of people that would be impacted by each of the two programs. He noted an analysis of the home rehab program should include both single-family and multi -family housing. Councilmember Graves stated she recognizes the fact that City Staff needs to make a recommendation by the end of February. She added she believes with a little more information the City Council can reach a consensus. Councilmember Ryan stated he accepts the Staff recommendation. 02/10/20 -5- ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Mayor Elliott closed the Study Session at 6.45 p.m. 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 Study Session of the City Council of the City of Brooklyn Center held on February 10, 2020. 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 February 24, 2020 Regular Session. Elliott, Mayor 02/10/20 -6-