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HomeMy WebLinkAbout2021 05-24 CCM Study Session MINUTES 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 MAY 24, 2021 VIA ZOOM CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Mike Elliott at 6:07 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, Kris Lawrence-Anderson, and Dan Ryan. Councilmember April Graves was excused. Also present were Acting City Manager Reggie Edwards, Community Development Director Meg Beekman, Planner and Zoning Administrator City Attorney Troy Gilchrist, and City Clerk Barb Suciu. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Acting City Manager Reggie Edwards advised of several changes to the meeting packet, noting EDA agenda Items b and c should be removed as they are duplicates from previously presented items. In addition, Concept Development Proposal for 6440 James Circle was tabled and rescheduled from the last Work Session and should be added to tonight's Work Session agenda. It was the consensus of the City Council to accept the revisions to the May 25, 2021, EDA and Work Session agendas, as requested by Dr. Edwards. MISCELLANEOUS COUNCIL RETREAT WITH COMMON SENSE DISCUSSION Mayor Elliott noted that Common Sense has offered the following dates for the Council's retreat: June 5, June 13, June 18, or June 26, 2021. Councilmember Butler indicated the only dates that work for her are June 5 and 26, 2021. Councilmember Ryan stated he is available for any of the dates but if Councilmember Butler is available on June 26,2021,he would go along with that date. Councilmember Lawrence-Anderson agreed with Councilmembers Ryan and Butler, noting late June would be best for her, and she is available on June 26, 2021. Mayor Elliott stated June 26, 2021 works for him as well and asked staff to confirm with Councilmember Graves whether she is available on that date. The City Council consensus was reached to schedule the City Council retreat on June 26, 2021, pending confirmation from Councilmember Graves. If Councilmember Graves is not available, OS/24/21 -1- the City Council will discuss new dates for the retreat. Dr. Edwards noted the City Council will need to address the ongoing work from Common Sense, input from the listening sessions, and moving forward with the development the City Council has been working on. The second issue is that the City Council committed to a listening session with staff to address activities,unrest, and trauma of the last months. Dr. Edwards stated in preparation work, he held listening sessions with staff and Common Sense has held a listening session with all 33 management staf£ He explained that he wants to share that feedback with the City Council and prepare for a formal listening session between the City Council and staf£ Dr. Edwards asked whether the City Council would prefer an extended period on June 26, 2021, say 3.5 hours, or set a second date to deal with a listening session with all staff. Mayor Elliott stated from his perspective, it would be best to find a second date. Councilmember Butler asked if a second date would need to be during the day. Dr. Edwards stated he is suggesting the extended time would involve him and Common Sense to share what they have heard from staff thus far and prepare for a future listening session. He is not proposing to meet with staff on June 26, 2021, as preparation work is needed before a listening session with staff. Councilmember Butler stated in that case, she would prefer to extend the time of the June 26, 2021 meeting with Common Sense. Councilmember Ryan stated his agreement with Councilmember Butler, noting the extended time on June 26, 2021, would involve the preparation work of the City Council before holding a listening session with City staff. Councilmember Lawrence-Anderson concurred. Mayor Elliott asked if this discussion should be held before or after the Council retreat. Dr. Edwards stated on June 26, 2021, the City Council would do their regular development work with Common Sense and then he and Common Sense would share the input gathered with City staff and discuss how to prepare for the listening session between the City Council and staff that will be scheduled for the following date. Mayor Elliott stated then Common Sense will determine whether to hold that discussion at the start or after the City Council retreat. Dr. Edwards answered in the affirmative. Councilmember Butler asked about the general time for the Council retreat. Dr. Edwards stated the time considered was 9-11 a.m. but that time can change to 8:30-11:30 a.m. or 9-12:30 a.m. instead of at the City Council's discretion. Mayor Elliott stated a preference to hold the meeting in the morning. Councilmember Butler agreed and suggested starting at 8:30 a.m. Councilmember Ryan suggested a starting time of 8:30 a.m. or 9 a.m. Councilmember Lawrence-Anderson stated she can adapt and accommodate to whatever works for the balance of the City Council. OS/24/21 -2- The City Council consensus was reached to start the City Council retreat on June 26,2021, at 8:30 a.m. or 9 a.m. INFRASTRUCTURE FRAMEWORK FOR THE OPPORTUNITY SITE DISCUSSION Dr. Edwards introduced the item and stated this item relates to the Opportunity Site infrastructure, sewer, and streets that can be moved forward. He asked if the City Council is available to meet on June 14, 2021, at 5 o'clock to provide information and move forward with this item. He noted this item has been delayed several times and is now time-sensitive in the context of all of the other items related to the Opportunity Site. Mayor Elliott polled the Council Members on availability on June 14,2021. Councilmember Ryan stated he is available at 5 p.m. for a briefing on the Opportunity Site before the regular June 14, 2021, City Council meeting. Councilmember Lawrence-Anderson stated she is also available. Councilmember Butler stated she will not be available to attend the June 14, 2021 meetings. Mayor Elliott asked whether it is known if Councilmember Graves is available at 5 p.m. Dr. Edwards stated he does not know at this time and can update the City Council once her schedule is confirmed. Mayor Elliott stated in his view, it is a meeting that all or a majority of the City Council should be present and asked staff to follow up with Councilmember Graves. Dr. Edwards suggested if Councilmember Graves is not available at 5 p.m., he present potential dates that would not be the same night as a regular Council meeting. The City Council agreed with the suggestion of Dr. Edwards. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS CONCEPT DEVELOPMENT PROPOSAL FOR 6440 JAMES CIRCLE Acting City Manager Reggie Edwards introduced the item and invited Ms. Beekman to present the staff report. Community Development Director Meg Beekman displayed a PowerPoint presentation and stated this is a concept proposal for a 694 business center on the property at 6441 James Circle,the former Earle Brown bowling site that has been vacant for some time. She stated the interior of the building has been largely demolished and removed and the shell of the building remains with the rest of the site being vacant. Ms. Beekman stated this review is an opportunity for the City Council to ask questions and offer comments on a specific concept proposal before it comes as a formal land use application to the Planning Commission and City Council. The City Council could indicate if they are open to this concept and staff encourages questions by the developer and Council Members but this is a non- binding conversation. The City Council is not being asked to take formal action but, rather, OS/24/21 -3- th e site is owned privately by various parties with most of�tmos artiepinterestedgn acquir ng hesc by willing sellers. Regularly, staff receives inquiries fr p parcels for redevelopment concepts,reuse concepts for existing ea�dh sgis not�a surprising th ng as is for uses that do not align with the draft master plan. She sta the dr aft master plan calls for a very significant revisioning ofinlsout omes that the market is not uses,bringing in new infrastructure and ameniuidinanand su eTortin that process. The concern ls going to deliver on its own without the City g g pp g that absent a vision for the site, the City is limiting the ability to ensure that the re usehedevelopment of these properties aligns with what���re difficult far st ff t s onvey the an adopted framework for future re d e v eeop m�e�ners, and move along the regulatory componen t s City's vision, provi de direction to prop y that will ensure the City gets what it wants on the site.a dsis notkin a poas t on t Cenat another moratorium on development that expired last August moratorium. Ms. Beekman stated another pertinent piece is the City's Com and commercial m x d usep�o Sth s vision of the site and called for transit-oriented developmen srte. However,the Zoning Code does not align with the Comauto eori nt d r eta 1 and ommerc al site focuses more on historic land-use patterns, allows or uses which are not in alignment with the vision. As lan and Zonung Code are in alignmentl.nove along during visioning to ensure the Comprehensrve P Maze rovided an overview of four guiding principles and values that provide the basis. She Ms. p stated that staff heard over and over again from the ��o tslmov ng forward Th t habnow been the core values, they were centered and used as touc p ' tent in building out the plan that includes specifics and heta�i�n°munrt�y benefi for the people the in but does not lose track of what the City is trying to accomp is of Brooklyn Center. Ms. M aze stated one guiding principle is: creating a vibrant and distinctive destination for the mmunit and region. This is about serving the commu�n1�Yri ledsbotbe specia and a po ntsof co Y reciate. S , unique location and opportunrty, which all app rinci le is: embracing the growing diversity of pride that people connect with. Another guiding p P mmunit . She stated the intent is to manifest thatt celebra es that asea st�ong asset oa this co Y programming that this is truly a space forincirleon s h cons dering sustainability in design and the community. Another guiding p P y g reen and development. She stated this addresses sustaina nat t has to work econorriicallya The intent is efficient, thinking long term for the people here, a la and that this will be a place that all in the community can gather, meet, work, shop, live, p y, worship. aze resented a series of values and vision which t�ato recognize thig is for�aa Pe p e Ms. M P engagement to date. Diversity and inclusivity are front and cen re from different communities and have different perspectives, cultures, preferences, and to who a cr eate an intentional welcoming space. Affordability has o e t doe n pri e people out of their commercial spaces and other considerations to assure t e p � -4- 06/07/21 provide feedback and give direction to staff and the developer as they continue to work on the project. Ms. Beekman displayed a map of the subject 4-acre site, noting it is zoned C2 and guided for Business Mixed Use,which is a new land use designation created in the 2040 Comprehensive Plan to identify a base for what has historically been considered a light industrial district with broader land uses to create a business center-type of the environment to accommodate manufacturing, warehouse, and distribution, office, as well as hotels, restaurants, and other types of services that businesses within a business center might rely on or want to have. Residential is not a permitted use within the Business Mixed Use district but generally is a flexible land use otherwise. Ms. Beekman stated this site was acquired by Toushouta Tupra in 2017 and subsequently has gone through a Special Use Permit(SUP) approval process to allow for an event center. That SUP was renewed in 2019 but to date, that use has not come forward due to challenges with financing and identifying the right use for this property. The proposal is to demolish the existing structure and construct a 64,000 sq. ft. flex office light industrial building. She displayed an exterior building elevation, noting generally it would be thought these us�s are conducive to office space, manufacturing, distribution, and warehousing. A similar development would be the Caribou headquarters that has a wide variety of flexible uses. Ms. Beekman stated the stormwater, parking, and truck circulation would be contained on-site without shared stormwater and parking as had been proposed previously. This project would be developed speculatively with tenants identified after approval and construction commenced. While the tenants are not known at this time, we can surmise what they might be based on market demands and what is being built in other communities. Ms. Beekman displayed a site plan, noting the 50-foot front setback from James Circle and 25- foot rear and side setbacks. The Zoning Code requires front yard setbacks on all sides fronting on major roadways. But in this case, to make the site work, one of the flexibilities would be around allowing lesser setbacks at the rear and side. It would also require a rezoning to PUD Business Mixed Use. The parking shows 80 stalls. She explained the parking demand is difficult to calculate as the parking requirement is based on use and we don't yet know the tenant mix. Also, over time, tenants can change. Ms. Beekman explained how staff calculated the parking requirement at 122 stalls, meaning that as proposed there would be a parking deficiency. One of the factors playing into this is the need to understand what the land uses will be and a parking study would be required to understand that. She stated this may include some land-use obstructions as part of the development agreement. She noted the City's current parking restrictions were established in the 1960s and are currently under review as part of the Zoning Code update. Ms. Beekman stated about financing, the developer has indicated an initial project gap of $1.4 million so Ehlers has been asked to review that documentation. Ehlers indicated they don't feel a 26-year TIF district would be supported by the project. The City knows the funds generated by a TIF district can only be applied to TIF eligible expenditures so the City needs to better understand what those eligible expenditures are to understand how the amount of TIF generated will pair with what might be eligible for costs. As part of a public subsidy application request,the amount of the subsidy has to be warranted in addition to those costs for eligible uses. The public subsidy OS/24/21 -4- application will need to be fully analyzed and Ehlers will identify a recommendation regarding that. TIF will need to be found warranted by the City Council and then the City's public subsidy policy would apply. Ms. Beekman explained that based on tonight's discussion, the developer can proceed with a formal review process. In this case, it would be a Planning Case application for a PUD, rezoning, and a site and building plan review. These applications will go through the Planning Commission for the official public hearing and recommendation to the City Council. If a public subsidy is pursued, it would go through a formal review by the City's financial consultants to identify the warrants and pair those with eligible costs to assure there is a need for TIF and the subsequent use is appropriate. Any application for TIF would receive a formal review by both the City Council and EDA and require a public hearing. Ms. Beekman stated the discussion this evening is for City Council questions or comments directly related to the proposed concept including land use and site layout and if the City Council is open to TIF if found to be warranted in this case. She noted this site has been vacant for several years and struggled to find the best use. She stated the developer is available to make a further presentation and answer questions of the City Council. Mayor Elliott stated he would like to wait to see what the Planning Commission comes back with. Councilmember Ryan stated when we consider the range and types of commercial development, retail is pretty much dead and we don't see demand for office, but in conversations, he has had with the Development Director, speculative light industrial buildings are attracting interest in a lot of places. He stated he would be favorably disposed to the concept and should it go forward, then the City Council and EDA may have a conversation about what types of restrictions should be placed in the zoning to ensure certain undesirable uses don't go into the property. He stated he is open to TIF if it is determined to be warranted. Mayor Elliott stated on the retail sector, his thoughts are that retail for part of the market may be experiencing retraction but it depends on the part of the market you are talking about. He asked who we are building retail for, noting as an example, retail-like the Somali mall is bursting at the seams and they need more space. He stated it depends who you are building retail for as it could be dead or very much alive. Mayor Elliott stated he is interested in seeing what they come back with in terms of the financial package or the uses might be. Generally speaking,he thinks the City Council should look away from speculative markets in some cases and be more intentional in terms of the vision the City is building out for Brooklyn Center and how to go about building and specifically identifying the needs of the community. Patrick McGlynn, the developer, stated he is a multi-family developer that Mr. Tupra has brought on board to help develop this site he purchased three years ago. Mr. McGlynn stated he advised Mr. Tupra that doing an office-type or retail-type building in this market was probably not a great idea. They decided the industrial market was growing at an incredible rate,there is quite a demand for that product demand, and they have already fielded several calls from interested tenants for this project type. He stated they are looking forward to getting something new and fresh on a site OS/24/21 _5_ that has been underutilized,poorly maintained, and carries a connotation that the City of Brooklyn Center no longer wants to see, and neither do they. Mr. McGlynn stated they are excited to create some jobs for the City and deal with some of the environmental impacts of new construction. They have already applied for some programs with Xcel Energy and Center Point Energy to do their green building initiative and solar programs. They are working closely together to design the industrial building of the future that will be a transition into what new construction becomes. He stated he greatly appreciates the City Council taking the time to fit them into their agenda, noting the City Council has more pressing matters. He offered to answer questions of the City Council. Councilmember Ryan asked Mr. McGlynn to elaborate on his comment that retail and conventional office is probably not a good idea right now. He noted one concern of the City Council is how much market-rate development the City needs to have both in terms of relieving homestead property taxpayers so there is a tax base and financial wherewithal to do other types of development. He also asked Mr. McGlynn if he has experience with building this type of green building. Mr. McGlynn stated he has never done an industrial building but his partner, Josh Budish with Endeavor Development, spent the last number of years with Duke Realty, a nationally run company that focuses entirely on industrial property in the Midwest market. Mr. Boodish spearheaded their Minneapolis market so they have partnered with him on this project since he has intimate knowledge of what tenants are looking for, type of demand, aspects of construction that are important to tenants, and what brings businesses to certain areas. Mr. McGlynn stated the location of this site is very positive for industrial as it is easy to access, close to major highways, and feeds the demand for that type of product. He stated he does not think retail is necessarily dead and there is a need for well-placed retail. Councilmember Ryan stated Mr. McGlynn had mentioned that Brooklyn Center, in his opinion, is over retailed during a discussion on a different project. He noted some people may be put off by the term `speculative industrial' but in this market, it would be far more speculative to build retail unless it is extremely well placed and well-positioned, such as in Edina in a higher-income area. And to say nothing of the office where the trend is more people working from home. He stated when constructing an industrial building that does not have committed tenants is where the term `speculative industrial' comes from but considering this is a growing segment of the real estate redevelopment market, he thinks it is probably a better bet than the other two options. Mr. McGlynn stated if you look at speculative buildings proposed and under construction now, 90% of the time before those buildings are completed, they are fully leased and committed. He explained they call it `speculative' to leave it open to multiple users to then tailor it to their specific needs, whether a larger office component and smaller manufacturing component or a larger manufacturing component and a smaller office component. That is where the term comes from. He stated they intend that this building will be fully committed before they even start construction since they have already had an interest in this location before they even have government approvals or architectural drawings completed. OS/24/21 -6- ADJOURNMENT Mayor Elliott adjourned the Study Session at 6:48 p.m. STATE OF MINNESOTA) COLTNTY 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 Study Session of the City Council of the City of Brooklyn Center held on May 24, 2021. 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 June 14, 2021, Regular Session. � � , �'���� City Clerk Mayor OS/24/21 -7-