HomeMy WebLinkAbout2017/05/08 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
MAY 8, 2017
5:15 p.m. CITY COUNCIL STUDY SESSION (Written Reports Only) – Community Room
1. Business Terms for Redevelopment Contract with 36th Street LLC
2. Update on Made-in-MN Solar Panels for Fire Station #2 – Project Delay
3. Climate Action Plan (CAP) Update
4. Tax Forfeited Lands at 2109 Parklands Road
5:15 – 9:15 p.m. Boards & Commissions Interviews
Auxiliary aids for individuals with disabilities are available upon request.
To make arrangements, please call the Administration Department at
952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting.
Meeting: Study Session
Meeting Date: May 8, 2017
Written Report: 1
EXECUTIVE SUMMARY
TITLE: Business Terms for Redevelopment Contract with 36th Street LLC
RECOMMENDED ACTION: This report presents the proposed business terms for the
Redevelopment Contract with 36th Street LLC. The terms are consistent with the discussion held
at the March 27th Study Session. Unless staff is informed otherwise, the terms will be incorporated
into a Redevelopment Contract with 36th Street LLC which will be presented for formal
consideration at the May 15, 2017 EDA meeting.
POLICY CONSIDERATION: Are the proposed business terms for the provision of TIF
assistance to The Elmwood project consistent with the direction provided at the March 27th Study
Session and does the EDA/City Council continue to support the project as proposed?
SUMMARY: 36th Street LLC (“Redeveloper”) owns the property and building located at 5605
W 36th Street known as the 36th Street Business Center. The Redeveloper proposes to demolish the
structurally substandard building and construct a 6-story, mixed-use, senior housing building
called The Elmwood. There are significant extraordinary costs associated with redeveloping the
subject site which render it financially unfeasible. Consequently the Redeveloper applied to the
EDA for Tax Increment Financing (TIF) assistance to offset a portion of these costs so as to enable
the project to proceed. The Redeveloper’s TIF application was reviewed at the March 27th Study
Session where it received favorable support.
FINANCIAL OR BUDGET CONSIDERATION: The Total Development Cost to construct the
proposed Elmwood project is approximately $1 9 million. According to the analysis of the project’s
proforma conducted by the EDA’s financial consultant The Elmwood is not financially feasible
but/for the provision of $950,000 in tax increment assistance. Such assistance is necessary to offset
a portion of the project’s extraordinary site preparation costs. It is proposed that the EDA enter
into a Redevelopment Contract with 36th Street LLC under which the Redeveloper agrees to
construct the project as proposed under the recently approved PUD and the EDA agrees to
reimburse the Redeveloper for qualified site improvement costs up to $950,000 in tax increment
generated by the project. The financial assistance would be provided on a pay-as-you -go basis over
a maximum term of 6 years. Once the TIF Note is retired the additional property taxes generated
by the project would accrue to the local taxing jurisdictions.
VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and
diverse housing stock.
SUPPORTING DOCUMENTS: Discussion
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Nancy Deno, EDA Deputy Executive Director and Deputy City Manager
Study Session Meeting of May 8, 2017 (Item No. 1) Page 2
Title: Business Terms for Redevelopment Contract with 36th Street LLC
DISCUSSION
BACKGROUND: 36th Street LLC (“Redeveloper”) acquired the property located at 5605 W 36th
Street in 2002. This one-acre parcel is located at the southeast corner of Xenwood Avenue and 36th
Street West. The subject property is currently occupied by a two-story multi-tenant commercial
building known as 36th Street Business Center which was recently determined to be structurally
substandard.
REDEVELOPMENT PROPOSAL: The Redeveloper proposes to raze the existing building and
construct a six story, mixed-use senior housing building called The Elmwood. The project will
consist of 85 residential units restricted to residents age 55+, of which 17 (or 20%) will be
affordable at 60% of the area median income (AMI), approximately 4,920 square feet of
commercial space, and 188 parking stalls. The west wing of the proposed building contains 4,920
gross square feet of commercial space, with space for outdoor seating. Active uses fronting 36th
Street include a fitness studio, leasing office and main entrance. The Redeveloper’s applications
for an Alley Vacation, Final Plat and PUD to allow construction of the proposed project on the
subject site were approved by the City Council on March 20, 2017.
Rendering of proposed redevelopment – The Elmwood
Redeveloper’s Request for Public Financing Assistance
The Total Development Cost to construct The Elmwood project is approximately $19 million.
There are significant extraordinary costs associated with redeveloping the subject site. These
include: asbestos abatement, building demolition, soil correction, site preparation, shoring,
underground stormwater retention, and structured underground parking. Altogether, these costs
exceed $3.6 million and prevent the proposed project from achieving financial feasibility.
Consequently the Redeveloper applied to the EDA for Tax Increment Financing (TIF) assistance
to offset a portion of these costs so as to enable the project to proceed. Tax increment financing
uses the increased future property taxes generated by a new development to finance certain
qualified redevelopment costs incurred during construction of that project for a limited period of
time.
Study Session Meeting of May 8, 2017 (Item No. 1) Page 3
Title: Business Terms for Redevelopment Contract with 36th Street LLC
Level and Type of Financial Assistance
The Redeveloper’s sources and uses statements, cash flow projections, and investor rate of return
(ROR) related to The Elmwood were reviewed by Staff and Ehlers (the EDA’s financial
consultant). Based upon its analysis of the Redeveloper’s financial proforma, Ehlers determined
that The Elmwood project is not financially feasible but/for the provision of $950,000 in tax
increment assistance. Ehlers estimated that such an amount would likely be generated upon project
completion over a term of 6 years. The assistance would be provided in the form of a TIF Note
and would be made available to exclusively reimburse the Redeveloper for a portion of the
extraordinary site preparation costs noted above. Upon project completion, tax increment
generated from the increased value of the property would be provided to the Redeveloper on a
"pay-as-you-go" basis, which is the preferred financing method under the City's TIF Policy.
TIF Application Review
The EDA/City Council reviewed the Redeveloper’s TIF Application for the proposed project at
the March 27th Study Session. There was consensus support for favorably considering the
recommended amount of financial assistance. As a result, staff was directed to call for a public
hearing on the proposed Elmwood Apartments TIF District on May 15, 2017 and prepare business
terms for a formal redevelopment contract with 36th Street LLC.
Proposed Business Terms – The Elmwood Project
The following are proposed business terms between the EDA and 36th Street LLC (“Redeveloper”)
which are consistent with EDA Policy, past practices and previous discussions with the EDA/City
Council. Upon mutual agreement, these terms will be incorporated into a Redevelopment Contract
(“Contract”) for The Elmwood mixed-use redevelopment (the “Minimum Improvements”) to be
constructed at 5605 W 36th Street (the “Redevelopment Property”).
1. The Redeveloper acknowledges that the EDA makes no representations or warranties as to
the condition of the soils on the Redevelopment Property or the fitness of the Redevelopment
Property for construction of the Minimum Improvements or any other purpose for which the
Redeveloper may make use of such property, and that the assistance provided to the
Redeveloper neither implies any responsibility by the EDA or the City for any contamination
of the Redevelopment Property nor imposes any obligation on such parties to participate in
any cleanup of the Redevelopment Property.
2. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the EDA,
the City, and their governing body members, officers, and employees, from any claims or
actions arising out of the presence, if any, of hazardous wastes or pollutants existing on the
Redevelopment Property on or after closing.
3. The EDA has determined that, in order to make development of the Minimum Improvements
financially feasible, it is necessary to reimburse Redeveloper for a portion of the cost of: soil
correction, environmental remediation, site preparation, and underground structured
parking (collectively referred to as “Public Redevelopment Costs”). The tax increment
generated from the Elmwood Apartments TIF District will be payable to Redeveloper in
the form of a tax increment revenue note (the “Note”), which would be structured on the
following basis:
Study Session Meeting of May 8, 2017 (Item No. 1) Page 4
Title: Business Terms for Redevelopment Contract with 36th Street LLC
Issue total: $950,000
Type: Pay-as-you-go
Term: Until full repayment – not to exceed 6 years
Interest Rate: 5% (subject to Redeveloper’s actual financing)
Admin Fee: 5%
Fiscal Disparities: Paid from within the district
The EDA shall issue and deliver the Note upon Redeveloper having:
(a) delivered to the EDA written evidence satisfactory to the EDA that
Redeveloper has incurred Public Redevelopment Costs in an amount at least
equal to the principal amount of the Note, which evidence must include
copies of the paid invoices or other comparable evidence for costs of
allowable Public Redevelopment Costs;
(b) submitted and obtained EDA approval of finance; and
(c) delivered to the EDA an investment letter in a form reasonably satisfactory to
the EDA.
(d) The EDA acknowledges that the Redeveloper may assign the Note to a third
party. The EDA consents to such an assignment, conditioned upon receipt of
an investment letter from such third party in a form reasonably acceptable to
the EDA.
(e) The Redeveloper understands and acknowledges that all Public
Redevelopment Costs must be paid by the Redeveloper and will be
reimbursed from Available Tax Increment pursuant to the terms of the Note.
The Redeveloper understands and acknowledges that the EDA makes no
representations or warranties regarding the amount of Tax Increment, or that
revenues pledged to the Note will be sufficient to pay the principal and interest
on the Note. Any estimates of Tax Increment prepared by the EDA or its
financial advisors in connection with the TIF District or this Contract are for
the benefit of the EDA, and are not intended as representations on which the
Redeveloper may rely. Public Redevelopment Costs exceeding the principal
amount of the Note are the sole responsibility of Redeveloper.
4. The EDA will perform a “lookback” calculation to verify the requested amount of TIF
assistance was justified similar to those conducted on other projects that received TIF
assistance. The precise triggers and formula relative to calculating the lookback is being
drafted.
5. Both parties agree that any assistance provided to the Redeveloper under the Redevelopment
Contract is not expected to constitute a “business subsidy” under Minnesota Statutes because
the assistance is for redevelopment.
6. Redeveloper agrees that it will pay the reasonable costs of consultants and attorneys retained
by the EDA in connection with the preparation of the TIF Plan, the establishment of the TIF
District, the negotiation and preparation of the Redevelopment Contract and other incidental
Study Session Meeting of May 8, 2017 (Item No. 1) Page 5
Title: Business Terms for Redevelopment Contract with 36th Street LLC
agreements and documents. Upon termination of the Redevelopment Contract the
Redeveloper remains obligated for costs incurred through the effective date of termination.
7. Redeveloper agrees to undertake the Minimum Improvements and Redeveloper Public
Improvements as shown in the PUD and Planning Development Contract and operate and
maintain the Minimum Improvements in good repair and condition. In summary, the
Redeveloper agrees to construct the Redeveloper Public Improvements, and construct the
Minimum Improvements which together consist of approximately 85 units of rental
housing restricted to residents aged 55+, approximately 4,920 square feet of commercial
space, and associated surface and structured underground parking comprising 188 parking
stalls, along with all associated infrastructure, sidewalks, landscaping and designed
outdoor recreation area.
8. Before commencing construction of the Minimum Improvements, the Redeveloper must
submit Construction Plans regarding the Minimum Improvements for approval by the
EDA. All work on the Minimum Improvements shall be in accordance with the approved
Construction Plans and shall comply with all City requirements regarding such
improvements.
9. If the Redeveloper desires to make any material change in the Construction Plans after their
approval by the EDA, the Redeveloper shall submit the proposed change to the EDA for its
approval. The term “material” means changes that increase or decrease construction costs by
$500,000 or more.
10. Subject to Unavoidable Delays, Redeveloper agrees to commence construction of the
Minimum Improvements by October 1, 2017 and substantially complete them by February
1, 2019. If the Redeveloper anticipates that the above timetable will not be met, Redeveloper
shall provide a written and oral presentation to the City Council at a regular City Council
meeting at least 45 days prior to the Required Commencement Date or Completion Date. The
report must describe the reasons for the expected failure to meet the schedule, evidence of
Redeveloper’s due diligence in working toward construction of the Minimum Improvements,
and a detailed revised construction schedule. Approval of a modified schedule for
construction by the EDA shall not be unreasonably withheld, conditioned or delayed. Failure
to timely provide such written and oral report is an Event of Default.
11. The Redeveloper shall comply with the City’s Green Building Policy, adopted by the City
Council on February 16, 2010 and as such policy may be amended as of the date of issuance
of a building permit for the Minimum Improvements, and shall use commercially reasonable
efforts to obtain a “green certification” for the Minimum Improvements. As a condition to
issuance of a Certificate of Completion for the Minimum Improvements, Redeveloper shall
submit to the EDA either (a) evidence of certification from Leadership in Energy and
Environmental Design (“LEED”) or similar certification or (b) in absence of actual
certification, evidence in a form satisfactory to the EDA of Redeveloper’s best efforts to
obtain such certification and an explanation of why certification was not feasible. to
Leadership in Energy and Environmental Design (“LEED”) or standards.
12. Promptly after completion of each Component of the Minimum Improvements in accordance
with those provisions of the Contract relating solely to the obligations of the Redeveloper to
construct the Minimum Improvements, the EDA Representative shall deliver to the
Redeveloper a Certificate of Completion in recordable form and executed by the EDA.
Study Session Meeting of May 8, 2017 (Item No. 1) Page 6
Title: Business Terms for Redevelopment Contract with 36th Street LLC
13. The Redeveloper shall at all times engage a property management company with
substantial experience in operating mixed use developments, subject to approval by the
EDA, which approval will not be unreasonably withheld. The Redeveloper will submit
evidence of such management upon request by the EDA. The Redeveloper has notified,
and the EDA has approved, the engagement of Main Street Companies as property
management company.
14. The Redeveloper agrees to comply with the City’s Inclusionary Housing Policy, as adopted
June 1, 2015, including without limitation the following:
(a) The Redeveloper agrees to reserve at least 20% of the apartment units within the
Minimum Improvements for households earning sixty percent (60%) of Area Median
Income (“AMI”) (collectively, the “Affordable Apartments”) for at least twenty-five
(25) years following building occupancy.
(b) The monthly rental price for Affordable Apartments shall include rent and utility costs
and shall be based on sixty percent (60%) of AMI for the metropolitan area that
includes the City adjusted for bedroom size and calculated annually by Minnesota
Housing in connection with establishing rent limits for the Housing Tax Credit
Program.
(c) The size and design of the Affordable Apartments shall be consistent and comparable
with the market rate units in the Minimum Improvements and is subject to the
approval of the City. The Affordable Apartments shall be distributed throughout the
North Apartments Component and the South Apartments Component.
(d) The Affordable Apartments shall have a number of bedrooms in the approximate
proportion as the market rate units.
(e) The Redeveloper agrees to prepare an affordable housing plan as defined in the City’s
Inclusionary Housing Policy (the “Affordable Housing Plan”). The Affordable
Housing Plan shall describe how the Redeveloper complies with each of the
applicable requirements of the Inclusionary Housing Policy. The Affordable Housing
Plan shall be prepared by the Redeveloper and must be approved by the City prior to
or in conjunction with delivery of the Certificate of Completion for the North
Apartments Component or the South Apartments Component, whichever is earlier.
15. The Redeveloper shall install dedicated wired connections for the Minimum Improvements
in conformity with the terms and specifications provided in the City Planning Development
Contract.
16. The Redeveloper shall construct a designed outdoor recreation area and other public amenities
including public art on the Redevelopment Property as required under the City Planning
Development Contract and as depicted in the approved Site Plan. The parties agree and
understand that the Redeveloper shall be responsible for the cost of any maintenance and
repair of the amenities and Public Art.
Study Session Meeting of May 8, 2017 (Item No. 1) Page 7
Title: Business Terms for Redevelopment Contract with 36th Street LLC
17. The Redeveloper agrees to file any petition or other document required to participate in the
City’s Special Service District No. 6 and to become subject to special service charges levied
on all commercial properties in the Special Service District with regard to the South
Components. The Redeveloper further waives all rights to veto, appeal or otherwise object to
imposition of a service charge levied in accordance with this paragraph, provided that the
Redeveloper shall be entitled to raise any objections, appeals or challenges to special district
changes upon the termination of the Contract.
18. The Redeveloper agrees to comply with the terms of the Maintenance Plan for the
Redevelopment Property as specified in the City Planning Development Contract.
19. If the Redeveloper fails to perform the Maintenance in accordance with the Maintenance Plan,
the City, at its option and following thirty (30) days written notice from the EDA to the
Redeveloper (or such longer period of time as is reasonably necessary if Maintenance cannot
be reasonably be completed within the 30 day period), may enter the Redevelopment property
and perform the Maintenance. The Redeveloper agrees to permit the City to specially assess
any costs of the Maintenance proportionately against the Minimum Improvements.
20. The Redeveloper shall, with the EDA, execute an Assessment Agreement specifying an
assessor’s minimum market value for the Redevelopment Property and the Minimum
Improvements constructed thereon.
21. Before issuance of the TIF Note, the Redeveloper shall submit to the EDA, consultants and
agents, evidence reasonably satisfactory to the EDA that Redeveloper has available funds, or
commitments to obtain funds, whether in the nature of mortgage financing, equity, grants,
loans, or other sources sufficient for paying the cost of the developing the Minimum
Improvements.
22. The EDA agrees to subordinate its rights under the Contract to the Holder of any Mortgage
securing construction or permanent financing, in accordance with the terms of a mutually-
approved subordination agreement.
23. Redeveloper agrees not to transfer the Redevelopment Contract or the Redevelopment
Property (except to an affiliate) prior to receiving a Certificate of Completion without the
prior written consent of the EDA, except for construction mortgage financing and/or
permanent financing. The EDA's consent shall not be unreasonably withheld, conditioned
or delayed.
24. Redeveloper agrees that any proposed transferee, shall, for itself and its successors and
assigns, and expressly for the benefit of the EDA, expressly assume all of the obligations
of the Redeveloper under the Contract as to the portion of the Redevelopment Property to
be transferred and agrees to be subject to all the conditions and restrictions to which the
Redeveloper is subject.
25. Redeveloper shall undertake all work related to the Minimum Improvements and Redeveloper
Public Improvements in compliance with all applicable federal and state laws, including
without limitation all applicable state and federal Occupational Safety and Health Act
regulations. Any subcontractors retained by Redeveloper shall be subject to the same
Study Session Meeting of May 8, 2017 (Item No. 1) Page 8
Title: Business Terms for Redevelopment Contract with 36th Street LLC
requirements. All Redeveloper Public Improvements shall be constructed in accordance with
the City Ordinance.
26. Redeveloper agrees that the EDA and the City will not be held liable for any loss or damage
to property or any injury to or death of any person occurring at or about or resulting from
any defect in the Redevelopment Property or the Minimum Improvements.
27. The Redeveloper, for itself and its successors and assigns, agrees that during the construction
of the Minimum Improvements provided for in the Contract it will comply with all applicable
federal, state, and local equal employment and non-discrimination laws and regulations.
28. The Redeveloper agrees until the Contract Termination Date not to discriminate upon the
basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or
occupancy of the Redevelopment Property or any improvements erected thereon.
29. Redeveloper agrees that no portion of the Redevelopment Property will be used for a
sexually-oriented business, a pawnshop, a check-cashing business, payday loan agency, a
tattoo business, or a gun business, and that such restrictions may be placed in the
Redevelopment Deed.
The above terms will serve as the basis for and be incorporated into a Redevelopment Contract
with 36th Street LLC. Such terms are subject to further definition, revision and/or refinement as
deemed necessary by the EDA’s legal counsel.
NEXT STEPS: Staff will work with the EDA’s legal counsel to prepare the formal
Redevelopment Contract with 36th Street LLC based on the proposed business terms and any input
provided by the EDA. The Contract is expected to be brought to the EDA for formal consideration
on May 15th; the same evening as the public hearing for the proposed Elmwood Apartments TIF
District.
Meeting: Study Session
Meeting Date: May 8, 2017
Written Report: 2
EXECUTIVE SUMMARY
TITLE: Update on Made-in-MN Solar Panels for Fire Station #2 – Project Delay
RECOMMENDED ACTION: None at this time.
POLICY CONSIDERATION: Does the council need any additional information?
SUMMARY: The City of St. Louis Park, with the help of an energy consulting firm Apex, applied
for the Made in MN (MIM) solar rebate program during 2016 and was selected to install a 40 Kwh
panel system on Fire Station #2. The MIM program allows the city to embark on renewable energy
as is required in our Environmentally Preferable Purchasing Policy and stated in the goals of our
Energy Action Plan. The MIM program and solar developer model with Apex would allow
installation of this $157,000 system without the city using any capitol funds.
• The project was expected to be complete by June 2017.
• Apex submitted an extension to the program for their own reasons, causing a delay for the
start of the project by a few months.
• Staff is expecting an update to the project schedule from Apex by June 2017
Apex is the developer financing the panel installation. We have agreements with them for the city
to purchase all power produced at a set price for the next ten years and lease Apex the roof space.
The city will receive annual financial reimbursements from the MIM program during this period
to cover the increased operating cost of solar produced electricity.
Apex recently submitted a project extension request to the Department of Commerce without
informing the city. A final extension until December 2017 was approved. Apex is currently unable
to provide a date when they will have sufficient investment capital available to install the Fire
Station system. Staff has requested Apex provide a defined Fire Station project installation date
by June. If the system is not operational by October 2017, Apex would be in default of the
agreements with the city.
If Apex does not provide the city with an installation date by June 2017 staff will evaluate other
options. These may include a new developer or self-funding to ensure an operating solar panel
system is installed to take advantage of the MIM incentive.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental
stewardship. We will increase environmental consciousness and responsibility in all areas of city
business.
SUPPORTING DOCUMENTS: None
Prepared by: Shannon Pinc, Environment & Sustainability Coordinator
Brian Hoffman, Director of Inspections
Approved by: Nancy Deno, Deputy City Manager/HR Director
Meeting: Study Session
Meeting Date: May 8, 2017
Written Report: 3
EXECUTIVE SUMMARY
TITLE: Climate Action Plan (CAP) Update
RECOMMENDED ACTION: No action needed at this time.
POLICY CONSIDERATION: Does the council need any additional information?
SUMMARY: The purpose of this report is to provide an update on the progress on development
of the Climate Action Plan for the City of St. Louis Park.
As you recall, the city contracted with the Great Plains Institute (GPI) October 18, 2016 to work
with staff and other groups to develop a climate action plan. Originally the first draft was expected
to be completed by April 30, 2017. Due to the extensive work and data needed, GPI requested an
extension to June 30, 2017. Staff has agreed to this extension knowing the importance and time
needed for accurate data collection to be used in this planning document.
Climate action plans are comprehensive roadmaps that outline the specific activities that an agency
can undertake to reduce greenhouse gas emissions (GHGs). The plan will provide guiding
objectives and strategies to realize the city’s GHG reduction goals of sourcing 100% renewable
electricity by 2025 and achieving carbon neutrality by 2040. Our staff did an excellent job of
providing our consultant with data, history, and other information to produce a robust plan. The
plan will become the roadmap we will use to implement actions that can achieve the relatively
greatest emission reductions in the most cost effective manner. The plan will include city
operations as well as community wide GHGs. The goal was to have the plan completed this spring
so implementation of strategies that can reduce our GHGs can begin.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental
stewardship. We will increase environmental consciousness and responsibility in all areas of city
business.
SUPPORTING DOCUMENTS: Discussion
Prepared by: Shannon Pinc, Environment & Sustainability Coordinator
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study Session Meeting of May 8, 2017 (Item No. 3) Page 2
Title: Climate Action Plan (CAP) Update
DISCUSSION
It is important that the data that is used in development of the climate action plan be timely,
accurate and complete. The consultants needed more time to compile data from our utilities. Due
to a delay in obtaining data this project has to be extended from its original completion date of
April 30, 2017. The energy data for the community and city operations are crucial in determining
the strategies and actions that will be included in the Climate Action Plan (CAP), and we could
not move ahead with the project until that analysis was complete. The project is back on track to
be completed by June 30, 2017.
Climate Action Plan process in more detail:
There are two key areas of focus on our plan, community wide GHGs and city operations GHGs.
Community Wide Process:
Our consultant gathered the data to complete the community wide GHGs through the Regional
Indicators Initiative data process, which was part of our climate action plan contract deliverables.
A group of Environment & Sustainability commissioners and volunteers from the Energy Action
Plan implementation teams was formed and called the CAP Advisory Committee. The community
wide GHG data was presented to both the CAP Advisory Committee and the youth from
iMatter/Roots & Shoots on March 6th, 2017. Since then we have had 3 working sessions with GPI
and the CAP Advisory Committee to draft community wide (residential & commercial sectors)
sub goals and strategies to get us to our overarching goals of carbon neutrality by 2040 and
sourcing 100% renewable electricity by 2025. Some adjustments were made and presented to the
CAP Advisory Committee on April 21, 2017. A final draft of the community wide goals is
scheduled to be presented to the CAP Advisory Committee and involved youth on May 5th for
final feedback and to discuss how youth might participate with the CAP implementation going
forward. Their recommendation of support should go to the Environment & Sustainability
Commission for approval.
NEXT STEPS: City Operations Process:
The city utility data has been received and is being finalized to accurately determine city operation
GHGs. The next step in this process is to identify specific action steps that will need to be taken
in order to achieve interim and long-term goals. These actions will provide the City a clear path
toward achieving energy consumption reductions and increasing clean energy.
GPI will develop sub goals and strategies using the wedge tool to determine what is feasible and/or
would help us achieve the overarching goals through city specific actions. A draft of this internal
plan will be completed the week of May 15th. A staff meeting with GPI will be scheduled for
week of May 22nd to review, ask questions and suggest options. The final draft plan will be
completed early June for final review and approval by staff and Council. The final plan will be
completed no later than June 30, 2017.
Meeting: Study Session
Meeting Date: May 8, 2017
Written Report: 4
EXECUTIVE SUMMARY
TITLE: Tax Forfeited Lands at 2109 Parklands Road
RECOMMENDED ACTION: No action at this time. The purpose of this report is to inform the
city council of the opportunity to purchase tax forfeited land from Hennepin County, and to
summarize the next step.
POLICY CONSIDERATION: Does the city council wish to purchase the tax forfeited land?
SUMMARY: Staff was contacted by the Tax Forfeited Real Estate Management division of
Hennepin County about the property located between city-owned right-of-way and city-owned
parks/open space. The parcel is 1,828 square feet and is located on Parklands Rd., adjacent to city
owned land. The parcel is zoned R-1 Single-Family Residence.
The parcel on its own does not meet the minimum size requirement of 9,000 square feet for a
buildable lot. Therefore, it cannot be developed with a new home, and is best suited to be
combined with an adjacent parcel. The adjacent parcel is city owned, and is 3.51 acres. It is a
wooded ravine instrumental to facilitate local stormwater.
There are no utilities running through the parcel, and a site inspection was conducted. Other than
some minor dumping of leaves, there are no visible concerns with the property. While this property
requires very little maintenance, city staff has been managing the property in conjunction with the
adjacent park and open space property by removing storm damaged trees as necessary.
Hennepin County is requesting $25.00 for the land plus fees for a total purchase price of $103.45.
A breakdown of the fees is attached.
Next Step: Staff recommends purchasing the property. Staff will prepare a resolution for council
consideration at the next council meeting. If any council members have a concern or question
please notify staff.
FINANCIAL OR BUDGET CONSIDERATION: Purchasing the property requires an
expenditure of $103.45.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Hennepin County Property Map
Breakdown of Purchase Cost
Prepared by: Gary Morrison, Assistant Zoning Administrator
Reviewed by: Sean Walther, Planning & Zoning Supervisor
Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study Session Meeting of May 8, 2017 (Item No. 4) Page 2
Title: Tax Forfeited Lands at 2109 Parklands Road
Study Session Meeting of May 8, 2017 (Item No. 4) Page 3
Title: Tax Forfeited Lands at 2109 Parklands Road
Study Session Meeting of May 8, 2017 (Item No. 4) Page 4
Title: Tax Forfeited Lands at 2109 Parklands Road