THE BROOKLYN PARK ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN PARK MAY 15, 2017 MEETING MINUTES

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1 THE BROOKLYN PARK ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN PARK MAY 15, 2017 MEETING MINUTES I. ORGANIZATIONAL BUSINESS: 1. CALL TO ORDER: President Jeffrey Lunde (7:00 p.m.) ROLL CALL PRESENT: President Jeffrey Lunde, Vice President Terry Parks and Treasurer Susan Pha, Commissioners Rich Gates, Lisa Jacobson, Bob Mata and Mark Mata, Executive Director Kim Berggren and Secretary Theresa Freund. ABSENT/EXCUSED: None 2. PUBLIC COMMENT AND RESPONSE: 2.A Response to Prior Public Comment: None. 2.B Public Comment: None. 3. APPROVAL OF AGENDA MOTION RICH GATES, SECOND TERRY PARKS APPROVING THE AGENDA AS PRESENTED. MOTION PASSED UNANIMOUSLY. II. STATUTORY BUSINESS: 4. CONSENT: 4.1 Consider Approving the EDA Meeting Minutes. 5. PUBLIC HEARINGS: 5.1 None. MOTION RICH GATES, SECOND BOB MATA TO APPROVE THE APRIL 17, 2017 EDA MEETING MINUTES. MOTION PASSED UNANIMOUSLY. 6. GENERAL ACTION ITEMS: 6.1 Consider Awarding the Bid for the Replacement of the City Hall Monument Sign. MOTION JEFF LUNDE, SECOND BOB MATA TO WAIVE THE READING AND ADOPT RESOLUTION # AWARDING THE BID FOR THE REPLACEMENT OF THE CITY HALL MONUMENT SIGN TO GRAPHIC HOUSE, INC. MOTION PASSED UNANIMOUSLY.

2 Page Consider Maintaining Ownership and Operations of the Transitional Housing Facility Located at th Ave. N. and Direct Staff to Return to the City Council and the Economic Development Authority with a Capital Funding Plan. Staff is working with the EDA s attorney to get clarification from Minnesota Housing on the additional fifteen year compliance period to operate the transitional house. Commissioner Lisa Jacobson stepped out of the meeting at 7:23 pm. Commissioners asked questions about the critical improvement needs, the purpose of the facility, property taxes, rent collected, funding sources and potential buyers. MOTION BOB MATA, SECOND JEFF LUNDE TO TABLE THIS ACTION UNTIL FURTHER INFORMATION IS PROVIDED. MOTION PASSED UNANIMOUSLY. III. DISCUSSION: 7. DISCUSSION ITEMS: 7.1 Home Rehabilitation Program Discussion John Kinara stated the city provides grants and low interest loans to homeowners to make improvements and deferred repairs. The housing programs are designed to enhance the value and curb appeal of the existing housing stock while promoting a safe, stable living environment. These strategies are essential to strengthen the city s tax base and promote its mission. This program is mainly funded by CDBG funds that we receive annually from the federal government through Hennepin County. On February 23 rd when we were talking about the housing programs in the city, commissioners directed staff to work with Hennepin County and come up with a clear indication on how much each project should be allowed to spend when applying for these grants. We have two programs in this update: 1. The Home Rehab Deferred Loan Program is administered by Hennepin County on our behalf and qualifying homeowners that qualify at 80% of the area median income. For example a family of one person is allowed to make up to $47,600 per year. The loan is forgivable after ten years as long as the homeowner occupies that home and owns it without selling it. In the previous year, 2016 when the program started we designed the guidelines to allow any qualifying beneficiary to receive $1,000 to $10,000 up to $30, The Emergency Assistance Deferred Loan Program is also administered by Hennepin County and it funds emergencies only for Brooklyn Park homeowners. The loan amount in this program ranges from $1,000 to $15,000 at a 0% interest rate. There is no monthly payment required and the loan is forgiven after fifteen years as long as the homeowner occupies the house and owns it. Some of the eligible activities allowed include replacement of the furnace or some plumbing issues.

3 Page 3 John Kinara reported that staff compared the data of the 14 projects that were completed in 2016 for Brooklyn Park homeowners who applied for the grant and were fortunate to receive funding. The household income for those who qualified ranged from $11,000 a year to $46,000 a year. The average household income was about $27,507. The lowest project cost was $6,000 and the highest cost was $30,000. The average cost per project came to $23,633. Most of the costs were spent on roofing and siding (which are very expensive), window installation and kitchen repairs. One resident was approved for funding to repair the roof. When they removed the old shingles they found that the frames and the beams under the roof were rotten. They had to remove them and install new ones. This pushed the cost to $30,000. This was a constant theme that we found in all of the 14 projects. The homeowner applies to get funded for one project and when the work is being done they find there are other system failures within that project. The homeowner is only allowed to use this program once. In the year 2017 and 2018 our direction to Hennepin County is to focus on serving more residents where it is possible, target approving qualified homeowners for a loan amount between $10,000 to $15,000 and the flexibility to spend up to $30,000, if needed. This is in conformity with other county administered programs. Erik Hansen stated as you remember we had this discussion around the CDBG allocation. You asked us to come back with information. We are here to discuss what our findings are and our guidance suggestion and see if this fits with the tone of the board from February. We heard that the board wants to serve more residents in Brooklyn Park and that is why we want to work with the county around limiting grants to households between $10,000 to $15,000 and if it exceeded that amount, we would want written justification. John Kinara gave an explanation of some unintended costs to projects that occur when you uncover some things. We worked with Hennepin County and they told us what is happening and we allowed them to spend a little extra to fix the joists of the roofline so that it would stay up once they replaced the roof. We are finding that the flexibility does come in handy when we have those certain projects. Right now the way the guidelines are set up this is the practice. We did uncover that we need a little bit more closer monitoring of the grants that are going out to our homeowners. There was a misinterpretation of our guidance from the original program that we put out a few years ago. We have worked with Hennepin County and they understand what this board has asked us to do. If you think this doesn t meet the tone of the board, we are open to discussions and we could bring it back for an action before the end of June so that we have them in place when this money is available and in the program year starting on July 1 st.

4 Page 4 Commissioner Mark Mata stated he thinks the income threshold level of $47,000 seems high, in his opinion. He was thinking we would find household incomes more towards the $10.00 an hour, which is above minimum wage $15.00 an hour and not someone who is making around $ Commissioner Susan Pha thanked the staff for working on this. She stated that the goal is to have more residents use these funds and spreading the funding to as many people as possible. She likes that there are additional requirements for above $15,000. She would prefer to cap it at something lower than $30,000 but it doesn t have to be $15,000. She asked who decides if the project gets an additional amount over $15,000? Erik Hansen responded that the process we would want to go through is to have some sort of written documentation why they would have to exceed the $10,000 to $15,000 range before it is approved. Brooklyn Park staff would evaluate and give approval to Hennepin County. Staff would use the resources of the city whether we needed advice from the Building Inspection Division or other opinions on what needed to be fixed. President Jeff Lunde asked when this funding would become available. Erik Hansen stated that the money would become available in July. We would start marketing in June and we already have a waiting list. President Jeff Lunde stated that he hears most often from people in the fall who need new furnaces for the winter. Erik Hansen replied that a portion of the money is for emergency situations like heating in the winter. Staff has found that an emergency need applicant goes to the top of the list. John Kinara stated that he receives calls all the time throughout the year for grants to fix furnaces, windows, fix shingles and siding. He doesn t see much difference between the seasons. Commissioner Bob Mata asked if we could run this program similar to the front yard fixup program. Erik Hansen said he is hearing there is a definitive stick to the $10,000 to $15,000 with a cap that is lower than $30,000 from commissioners. Staff will come back with updated guidelines. We have not explored matching funds and we can talk to the county about that and see if there would be any impacts to the program. We are seeing some participants who are in extremely low income brackets so they are likely not able to have the funds available to match. 7.2 Status Update Kim Berggren highlighted the following items: We have had two Resilient Communities Project celebrations with the University of Minnesota. Thank you for attending those celebrations and supporting them. We had a lot of product coming out of the university this past year. Staff will post it on the website for people to see. There will be follow-up with some measurements of impacts over the next year. This is something that is required as part of the partnership.

5 Page 5 Staff did attach the list of all of the homes that have been recovered through the foreclosure recovery program to date. There were 194 recovered homes and their addresses are shown. Previously we had been providing this list monthly but now will be periodically providing the list to commissioners unless you request it. We recently held a Home Stretch Workshop here at city hall. That is done by Community Action Partnership for Suburban Hennepin. This is where new homebuyers can come and learn about home ownership. Another thing to celebrate is the Business Forward Advisory Board did host a summer barbeque and many businesses did come to the event this year. BrookLynk, the program that provides youth internship programs and is currently being run by the Brooklyn Bridge Alliance for Youth, has recently completed their workforce ready training with the young people as well as internship prep trainings. Over 181 youth have gone through those programs and they are now just launching 111 paid internships this summer. This is really good stats coming out of that program. The program has really scaled up over last year when there were significantly fewer assisted internships. Commissioner Susan Pha stated that she was looking over the scattered site housing rehabilitation section and it says that four homes are being rehabilitated and one property is vacant. Is that currently right now? Kim Berggren responded that is correct. There are four homes that are currently under rehab and they are in the ownership of our development partners through the loans the EDA has provided. The vacant property is actually a property the EDA chose to demolish and the property is land banked. Commissioner Susan Pha asked if these homes are the ones that have been approved since we last talked about new guidelines or are these homes carryover from last year. Kim Berggren responded that they are from the former program. Commissioner Susan Pha stated she wants to make sure that we have established guidelines that best serve the goals of this program and have implemented them before we would fund any new properties being bought. Kim Berggren introduced Daniela Lorenz who is currently an intern and was recently offered the position of Project Facilitator. The position became vacant when Angelica Klebsch was promoted to become the Business Development Coordinator. Daniela Lorenz graduated from the University of Minnesota s Master s Program. She will be on board full time starting in June.

6 Page Metro Blue Line Extension (Bottineau LRT) Update Jennifer Jordan highlighted the following: The Metro Blue Line Extension Citizen Advisory and Business Advisory Committees each have a vacancy. Staff has advertised on our website and sent out to various different lists. The applications closed on May 5 th. We did receive one application for the Citizen Advisory Committee and staff is still working to recruit a business for the Business Advisory Committee. The Council will see an action coming forward to approve that appointment for the Citizen Advisory Committee. We have started our round of outreach to businesses along the LRT line. We had a very successful outing last week where we visited 30 of the 210 some businesses along the line. We have two more rounds of visits scheduled this week. This is just one of the first of a series of visits that we are going to have with businesses throughout the summer. This first round is really intended to introduce ourselves as staff, see if people are aware of the LRT, talk with them about any concerns or questions that they might have and just give them some basic information. We are going to plan another three or four more rounds throughout the summer as we get into very specific business needs that folks might have. To answer a question from the last meeting about the height of the pedestrian deterrent between the station, the roadway and the tracks. I have a definite answer in terms of what that is. It is 3 2 at roadway level. If you add the track in there, it adds it to 3 8 if you are standing in the track area. President Lunde stated he is very aware there will be an impact on West Broadway business owners because of the LRT or reconstruction. He wants to stress the importance of outreach to the businesses. He has talked to business owners and not all were supportive of the LRT but most were. What he has heard from all of them is that they really want to know the timing as soon as possible and if there are any business programs available. He has encouraged the business owners he has talked to contact staff. Also he is assuming staff is already doing this but to find out the best practices from Minneapolis, St. Paul, chambers and other places on how they supported businesses. Commissioner Susan Pha thanked staff for reporting back the height of the pedestrian deterrent. It was a concern of hers that children would be able to climb over and get onto a very busy street. IV. WORK SESSION: At 8:32 PM EDA Commissioners recessed to the Steve Lampi Conference Room. This portion of the meeting was neither televised nor videotaped. At 8:40 PM the meeting was reconvened. Commissioner Lisa Jacobson returned at 8:52 pm. 7.4 Employment Density Discussion Commissioners and staff went over: Met Council s forecast of 40,200 jobs and Building to 2030 Task Force goal of 50,000 jobs.

7 Page 7 Available vacant land. Approximately 1,288 acres undeveloped: 731 acres business; 348 acres mixed used; and 209 acres housing. Current employment density in industrial, office, institutional, commercial and medical. Information was based on 36 employers and known employment data. Industrial and manufacturing trends in Brooklyn Park show a range of density depending upon the type of operation within the building. Analysis: Can meet 40,200 jobs with current development patterns. Need to make policy and planning changes to reach 50,000 jobs. Why job goals: o Tax base/tax capacity pay for services. o Quality jobs with good wages. o Daytime population attracts lifestyle amenities like restaurants. Opportunity Oak Grove Station Area could create a sense of place with transit oriented development: o Amenities. o Density. o Location. o Transportation Options. o Unique. Other considerations: o Tax capacity. o Market conditions. o Setback and building space requirements. o Wages. o Workplace technology. V ADJOURNMENT Meeting adjourned at 9:34 p.m. Respectfully Submitted EDA Secretary Theresa Freund