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HomeMy WebLinkAbout2020-108 CCRMember Ryan introduced the following resolution and moved its adoption: RESOLUTION IN 2020-108 RESOLUTION ISSUING A HOSPITALITY ACCOMMODATIONS LICENSE TO RADISSON HOTEL BROOKLYN CENTER WITH CONDITIONS WHEREAS, Nupen Patel ("Applicant"), owner of the Radisson Hotel Brooklyn Center, 2200 Freeway Boulevard, Brooklyn Center, MN 55430 ("Hotel"), submitted an application to the City of Brooklyn Center ("City") requesting to renew the hospitality accommodations license ("License") for the Hotel; and WHEREAS, because the Hotel has failed to comply with a number of City regulations, the City Manager forwarded the application to the City Council to conduct a hearing and consider whether to renew the License for the Hotel; and WHEREAS, the City Council held a hearing on the application at its meeting on October 12, 2020, heard from the Applicant and the Hotel manager, discussed the matter, and gave Erection to City staff to prepare a resolution to renew the License with conditions for consideration and action at a future meeting; and WHEREAS, the City Council hereby finds and determines as follows: a. Sections 23-2400 through 23-2415 of the Brooklyn Center City Code ("City Code") require hospitality accommodations (hotels and motels) within the City to obtain and annually renew a hospitality accommodation license; b. Under Section 23-2401 of the City Code, it "is unlawful for any person, firm, or corporation to operate a hospitality accommodation in the City without a hospitality accommodation license"; c. The Applicant indicated he tools possession of the Hotel in April 2019; d. The Hotel received a License effective as of May 1, 2019 and on January 31, 2019 the City mailed notice to the Hotel of the need to submit a renewal application before April 1520205 e. The Applicant did not submit an application by the April 1 Sc deadline and License previously issued for the Hotel expired on Apri130, 2020; f. The Applicant did not submit an application to renew the License until September 1, 2020; g. On September 2, 2020, the City sent the Applicant a letter indicating it received the application and that it will need to be considered by the City Council; 1 h. On September 25, 2020, the City Manager sent the Applicant a letter (which is incorporated herein by reference) indicating the existence of violations that constitute sufficient grounds to not renew the License and notifying the Applicant of a hearing to be held on the renewal application at the October 12, 2020 City Council meeting. The violations identified in the letter are summarized as follows. 1) Failure to renew the License and operating without a License since May 1, 2020, which constitute sufficient grounds under Section 23-2413(A)(7) of the City Code to not renew the License,$ 2) Failure to pay the lodging tax for the Hotel since March 20205 which constitutes sufficient grounds under Section 23-2413(A)(2) of the City Code to not renew the License; and 3) Failure to pay an outstanding balance of $50,049.54 of unpaid City utility charges, which constitutes sufficient grounds under Section 23-2413(A)(2) of the City Code to not renew the License; and 4) Operating the Hotel in a way that does not comply with the local zoning regulations and the planned unit developed (PUD) issued for the property, which constitutes sufficient grounds under Section 23-2413(A#) of the City Code to not renew the License. i. The September 25, 2020 letter also noted the sharp increase in calls for police service at the Hotel, including for violent crimes. In the period fiom June through August 2020, the number of calls from the same period in 2019 increased by 71 ft j. The City is aware the Hotel entered into a contract with a service provider ("Service Provider") who, in turn, the City understands has an agreement with the Minnesota Department of Health for emergency housing of people displaced as a result of the pandemic. The agreement with the Service Provider indicates that starting on May 30, 2020 the Hotel would make available up to its entire capacity of 174 guest rooms for the state program. The original Service Provider was Start Today Hennepin, but Second Chance recently took over as the Service Provider to operate the program at the Hotel; lc. As a result of the arrangement with the Service Provider, the Hotel is functionally being used as a homeless shelter. City staff believe that up to 100 guest rooms may have been used as part of the program at one time. City staff has raised concerns regarding the use as the Hotel for long-term housing as the PUD issued for the property limits it use to a short-term stay hotel, not an extended stay facility. Additionally, the Hotel was not designed or constructed to accommodate long-term stays; 1. The City sent multiple notices to the Hotel regarding the failure to pay utilities and the lodging tax. The Hotel only recently paid the outstanding utility charges and lodging tax and as a result is no longer in violation with respect to those items; 2 m. The City Council acknowledges the violations noted in the September 25, 2020 do constitute sufficient grounds under Section 23-2413 of the City Code to not renew the License; n. Included in the materials presented to the City Council for its October 12, 2020 meeting was a list of proposed conditions City staff prepared to address the issues and concerns it has been experiencing regarding the Hotel. The goal of the conditions is to place reasonable restrictions on the use of the Hotel as part of the state's program in order to protect the health, safety, and welfare of the public and the guests at the Hotel, and to recognize the limits on available City resources; o. The City Council conducted the hearing at its October 12, 2020 meeting and heard from the Applicant and the on -site manager of the Hotel. The testimony from the Applicant and the manager included the following: 1) The Applicant said he was not aware a license from the City was required and that he was not aware the management company he relied on to pay the utilities and lodging taxes were not paying them. He claimed to not have received any of the notices previously sent by the City; 2) The ai�angement with the state is part of emergency COVID-19 operations and the people staying at the Hotel through the program are not necessarily homeless. He indicated he does not ask if the person or family checking in are homeless; 3) The Applicant estimates that 35-40 guest rooms are cur7ently being used as part of the state program to house individuals and families. At the peek, the Applicant indicated Hotel housed approximately 82 clients in approximately 67 rooms; 4) He indicated those in the program stay anywhere from one week to two months, depending the success of the Service Provider in placing them elsewhere; 5) The Service Provider typically has four to six staff on site during the day and two at night; 6) With respect to the proposed conditions, the Applicant indicated that they already do many of them, such as meeting with City regularly and they already register vehicles in its lot; and 7) The Applicant indicated the pandemic has hurt his business and that participation in the program has helped bring some revenue to the Hotel. He objects to the proposed condition limiting the number of guest rooms that may be used for the program to 35 as being too limiting. p. The City Council noted the Hotel is aware of whether a guest is part of the state program as they are staying as part of the agreement the Hotel entered into with the Service Provider and through which the Hotel is being compensated, q. The City Council is well aware of the strain the pandemic has had on businesses and previously adopted a resolution to authorize the City to grant flexibility in City regulations as it determines is appropriate to assist businesses as they reopened and attempted to operate under the restrictions imposed by the state. The City Council determines it is appropriate to temporarily extend this same regulatory flexibility to the Hotel to continue to house clients under the state program despite the inconsistencies with local zoning regulations; and r. While granting regulatory flexibility is appropriate under the circumstances, the City Council also needs to act to protect the health, safety, and welfare of the public and those staying at the Hotel. As such, it is reasonable and necessary to place conditions on the License granted the Hotel that limits the period and scope of such use and to impose certain operational requirements. Placing a limit on the number of lodging units (guest rooms) that may be used as part of the program is appropriate as it recognizes the capacity limits of both the Service Provider and City staff to effectively address the resulting needs for services. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Brooklyn Center hereby approves and issues a Level I hospitality accommodation license pursuant to City Code Section 23-2408 for the Radisson Hotel Brooklyn Center for the period of May 1, 2020 to Apri130, 2 02 1, subject to compliance with all of the following conditions: l . Homeless Shelter Operations. The hospitality accommodation may continue to be used for the housing of the homeless pursuant to the state's program and managed by a Service Provider, subject to compliance with the following and the other conditions imposed on this hospitality accommodations license: a. The homeless shelter use must cease within 90 days of the end of the Governor's declaration of a peacetime emergency related to the COVID-19 pandemic. The Applicant is encouraged to work with the Service Provider to develop a transition plan to properly place those residing at the Hotel once the emergency declaration ends; b. No more than SO lodging units (guest rooms) in the hospitality accommodation maybe used as part of the homeless shelter use; and c. The Applicant shall not allow the expansion of the homeless shelter use, including any related on -site services, beyond the level existing as of the date of this license renewal, without first obtaining all zoning approvals required to allow the expanded use. 2. Regular Inspections. The Applicant shall allow City's inspectors to inspect the hospitality accommodation, including the lodging units, and the hospitality accommodation property at least every other week, but more often if the City determines more frequent inspections are needed for the safety of the guests. This condition does not limit the City's authority to conduct property safety inspections and such other 4 inspections without prior consent as provided for under Sections 23-2400 through 23- 2415 of the City Code, 3. Regular Meetings. The Applicant shall designate at least one staff member to meet with City staff at the hospitality acconunodation at least once every two weeks to discuss health, public safety, and any other City concerns related to the operation of the hospitality accommodation, including the homeless shelter use. A representative of the Service Provider shall also be required to attend these meetings. The City may require more frequent meetings if it deems necessary. 4. Register Vehicles and Tow. The Applicant shall require those parking on the hospitality accommmodation property to register their vehicles with the hospitality accommodation. The Applicant shall enter into a contract with a towing company to conduct a sweep at least once every day to tow unregistered vehicles from the hospitality accommodation property. The Applicant shall post such signs of the requirement to register vehicles and related towing information as it determines is appropriate. 5. Service Provider. The Applicant shall immediately notify the City if there is a change in Service Provider related to the homeless shelter use. The notice shall include the name and contact information for the new Service Provider. 6. Notice of Discharge. The Applicant shall notify the City if it takes action to discharge anyone staying at the hospitality accommodation as part of the homeless shelter use. 7. License Level. Because the homeless shelter use is a recent and temporary use of the hospitality accommodation, this license is being renewed as a Level I hospitality accommodation license. However, the calls for service occurring during the 2020 calendar year may be considered when reviewing and acting on the renewal license in April 2021. ATTEST: November 9 2020 Date City Cleric Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Lawrence -Anderson and upon vote being taken thereon, the following voted in favor thereof: Butler, Graves, Lawrence -Anderson, Ryan and the following voted against the same: Elliott whereupon said resolution was declared duly passed and adopted. �r