HomeMy WebLinkAbout2016/02/16 - ADMIN - Agenda Packets - City Council - RegularAGENDA
FEBRUARY 16, 2016
6:30 p.m. SPECIAL STUDY SESSION – Community Room
Discussion Items
1. 55 min. Outdoor Arena Project
7:25 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers
1. Call to Order
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes February 1, 2016
4. Approval of Agenda
5. Reports -- None
6. Old Business – None
7. New Business
7a. First Amendment to the Preliminary Development Agreement with PLACE
Recommended Action: Motion to Adopt EDA Resolution approving the First
Amendment to the Preliminary Development Agreement with PLACE.
8. Communications -- None
9. Adjournment
7:30 p.m. CITY COUNCIL MEETING – Council Chambers
1. Call to Order
1a. Pledge of Allegiance
1b. Roll Call
2. Presentations
2a. 2015 Human Rights Award Presentation
2b. Retirement Recognition Resolution for Housing Assistance Coordinator Cindy
Stromberg
2c. Recognition of Controller Brian Swanson’s 13 Years of Service
2d. Recognition of Donations
3. Approval of Minutes
3a. City Council Meeting Minutes January 25, 2016
3b. City Council Meeting Minutes February 1, 2016
Meeting of February 16, 2016
City Council Agenda
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.
4. Approval of Agenda and Items on Consent Calendar
NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which
need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a
Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular
agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda.
Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive
reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda,
or move items from Consent Calendar to regular agenda for discussion.)
5. Boards and Commissions
5a. Appointment of Torrey Kanne to the Planning Commission
Recommended Action: Motion to appoint Torrey Kanne to the Planning Commission
for a term to expire May 31, 2018.
6. Public Hearings
6a. Public Hearing to Consider Allocation of 2016 Community Development Block Grant
(CDBG) Funds
Recommended Action: Mayor to close the public hearing. Motion to Adopt Resolution
approving proposed use of 2016 Urban Hennepin County Community Development
Block Grant (CDBG) Program Funds and authorize execution of Subrecipient
Agreement with Hennepin County and any Third Party Agreements.
7. Requests, Petitions, and Communications from the Public – None
8. Resolutions, Ordinances, Motions and Discussion Items – None
9. Communications – None
Immediately following City Council Meeting
SPECIAL STUDY SESSION Continued – Community Room
Discussion Items
2. 30 min. Proposed St. Louis Park Revolving Loan Fund Program
Meeting of February 16, 2016
City Council Agenda
CONSENT CALENDAR
4a. Execute a three year contract with YTS Companies for the 2016 - 2018 Boulevard
Tree and Stump Removal Program, in an amount not to exceed $57,100 annually.
4b. Execute a three year contract with YTS Companies for the removal of diseased trees
on private property for 2016- 2018, in an amount not to exceed $39,619.00 annually.
4c. Adopt Ordinance vacating two drainage and utility easements, and approve the
summary ordinance for publication.
4d. Adopt Resolution to recognize Housing Assistance Coordinator Cindy Stromberg for
her 34 years of service to the City of St. Louis Park.
4e. Adopt Resolution approving acceptance of a monetary donation from American
Legion in the amount of $750 for Westwood Hills Nature Center to print Westwood
Hills Nature Center wildflower coloring books by Maggie Christiansen, Girl Scout
Silver Award candidate.
4f. Adopt Resolution approving the First Amendment to the Preliminary Development
Agreement with PLACE.
4g. Adopt Ordinance amending the zoning map, and approve the summary ordinance for
publication.
4h. Approve Amendment No. 1 to City Agreement No. 126-14, between the city and New
Cingular Wireless PCS, LLC (AT&T) for communication antennas on the city’s water
tower at 2541 Nevada Avenue South.
4i. Adopt Resolution confirming the appointment of Steven Heintz as interim City
Treasurer effective February 18, 2016.
4j. Adopt Resolution approving St. Louis Park Lions Club’s request for placing temporary
signs in the public right-of-way.
4k. Approve for filing Fire Civil Service Commission Minutes of December 16, 2015.
4l. Approve for filing Planning Commission Minutes of January 6, 2016.
4m. Adopt Resolution in support of a grant application to the Hennepin County Transit
Oriented Development (TOD) Program for development activities for PLACE.
St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel
17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at
www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in
the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon
on Friday on the city’s website.
Meeting: Special Study Session
Meeting Date: February 16, 2016
Discussion Item: 1
EXECUTIVE SUMMARY
TITLE: Outdoor Arena Project
RECOMMENDED ACTION: Staff desires to review with Council the results of the bids
received for the project and discuss next steps.
POLICY CONSIDERATION: Does Council want to proceed with approval of the bids at an
upcoming special Council meeting (perhaps February 29) and move forward with this project?
SUMMARY: Over the past two years the City has worked with RSP Architects and RJM
Construction on the design of a multi-use recreational facility on the campus of the Rec Center.
At least part of the momentum for considering this project came from interest expressed by the
Hockey Association and their willingness to provide funding to help finance the project (ultimately
$1.55 million over time).
At the July 28, 2014 Study Session, the council was presented with the results of the feasibility
study for this project. At that time the estimated cost was $4.7 million. At the July 20, 2015 meeting
the Council was asked to approve plans and specs and authorize advertisement for bids. At that
time the estimate was $5.84 million. As process continued and the roof structure was further
designed, it became apparent that the costs would exceed the earlier estimate. When staff asked
Council on November 16, 2015 to reject the grading and site work bids and reauthorize the
advertisement of bids for the entire project, the project estimate was $7.1 million.
FINANCIAL OR BUDGET CONSIDERATION: The results from the February 2, 2016 bid
closing came in at $7.29 million. In addition to the bid results, there are $1.22 million in costs that
the city has directly secured pricing for (i.e. dasher boards, rink floor, turf, Zamboni, etc.) bringing
the total cost for the project to approximately $8.51 million. Upon subtracting the $165,000 in
grant funding which has been secured, the project cost comes to $8.345 million.
Staff has identified possible ways to reduce the project cost to approximately $7.472 million
through a value engineering exercise and by taking into consideration as a revenue source the
savings from the Rec Centers Indoor Refrigeration project coming in under the original budget.
This amount does not take into consideration the deduction of $1.55 million via the donation being
provided over time by the Hockey Association ($400,000 contributed thus far). Between now and
next Tuesday staff and our consultants will continue its analysis and the numbers above are subject
to change. Staff will also reexamine how the project was proposed to be financed to see if a
different approach could mitigate impacts. Thus far $287,000 has been spent on this project
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Previous Council Reports
Site Diagrams
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of February 16, 2016 (Item No. 1) Page 2
Title: Outdoor Arena Project
DISCUSSION
BACKGROUND: Over the past two years staff has worked with RSP Architects and RJM
Construction on the design of a multi-use recreational facility on the campus of the Rec Center.
This facility would be used as a covered ice rink in the winter months for hockey, open public
skating, broomball and other special skating events. In the spring the facility would be converted
to a covered, turfed field. This would allow for activities like baseball, softball, soccer and lacrosse
that struggle to get outdoor fields due to snow/ice/wet conditions. This would also provide a venue
for special events like the annual egg hunt and the Children First Ice Cream Social, eliminating
concern for inclement weather cancelling these types of events. In the summer and fall the venue
presents numerous opportunities for new and expanded programs and events such as weddings,
movies in the park, farmers markets, pet expos, theater performances and fitness classes. This
facility will provide a unique opportunity for a wide range of activities and events and serve as a
tremendous community asset.
At the July 28, 2014 Study Session, staff presented Council with the feasibility study cost estimate
of $4.7 million. Per Council direction staff then moved on to the schematic design phase where
the architects and engineers began designing and defining the projects scope.
On January 26, 2015, Council authorized staff to move into the design development phase and
secure a written agreement with the Hockey Association for their financial commitment of $1.55
million. At that time the project was estimated to cost $5.6 million. On July 20, 2015, staff advised
Council that the latest cost estimates were $5.84 million. RSP Architects and Blackwell
Engineering continued to refine the drawings to meet ADA requirements and insure that the design
of the roof could meet the wind and snow loads associated with Minnesota weather.
As council is aware, staff did extensive soil borings and test pits in the area of the proposed
Outdoor Arena. The site work and grading was bid last October to get an idea of what that would
cost. At the November 16, 2015 council meeting staff recommended that council reject those bids
to give staff an opportunity to apply for grant money. Grants were applied for and the city was
awarded $165,000. As a part of the report on November 16, staff indicated that the project estimate
was $7.1 million.
PRESENT CONSIDERATIONS: The bid results from the February 2, 2016 bid closing came in
at $7.29 million. In addition to the bid results there are $1.22 million in costs that the city has
directly secured pricing for (i.e. dasher boards, rink floor, turf, Zamboni, etc.), bringing the total
cost for the project to $8.51 million.
The areas of the project that saw a significant increase from earlier estimates, or that were added
to the project after code review, included: Glue Laminated Construction (structure holding up
fabric roof), Tensile Membrane Structure (fabric roof material), Structural Steel and Erection (steel
cabling used in roof structure), addition of a canopy over the ramp leading up to the plaza area
(ADA requirement) and increased design of bleachers to act as a means of code required exiting
from Rec Center (plaza area).
OPERATING REVENUE PROJECTIONS FOR THE OUTDOOR RINK: Our earlier pro-
forma showed a 98% operating cost recovery. Staff has been very conservative with this estimate.
This was based on selling $41,000 of ice rental, $1,000 of turf time and $2,000 of dry floor
activities for a total revenue of $44,000. Expenses are estimated to be $44,750. Again, this is very
conservative. After one year of operating, the City of Edina is collecting $78,000 in ice rental
Special Study Session Meeting of February 16, 2016 (Item No. 1) Page 3
Title: Outdoor Arena Project
revenue from their hockey association. We believe we can generate a similar amount which would
put us in the black approximately $33,250 on ice sales alone.
NEXT STEPS: Staff met with the St. Louis Park Hockey Association leadership to inform them
of the bid results. As anticipated, they still very much want to partner with the City on this facility.
The have committed financially to the capital cost of $1.55 million. In addition, they have
committed to the use of the rink which is referenced above in the revenue projections.
Staff from Finance and Operations and Recreation Departments are also looking at how we
planned to fund this project and ways we can adjust the approach to help mitigate impacts. We
will have more information on that at the study session.
There are three options on how to proceed with the project:
1. Move forward by awarding the bids at the special council meeting on February 29.
Construction would begin late March with completion by the end of December 2016. Staff
would start scheduling the winter use of the rink January 2017 and then move into spring
and summer programming of the facility.
2. Redesign the project to include a metal roof rather than the glue-laminated construction
and fabric roof that is currently designed. This would require rejecting the bids at the
special council meeting on February 29 and delay the project by a year. Constructing the
project with a metal roof would potentially save $1 million.
3. Reject the bids at the special council meeting on February 29 and decide not to do the
project, or at least put it on hold.
Meeting: Study Session
Meeting Date: July 28, 2014
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Outdoor Refrigerated Ice Feasibility Study
RECOMMENDED ACTION: No action necessary at this time. This report is intended to
provide the Council with a summary of the feasibility study for an outdoor refrigerated ice rink at
The Rec Center.
POLICY CONSIDERATION: Is the City Council interested in having staff continue to work
with the Hockey Association on further design and funding for an outdoor refrigerated ice rink?
SUMMARY: At the Study Session held on January 27, 2014, Council supported staff’s
recommendation to begin a feasibility study on the potential for an outdoor refrigerated ice rink
on the west side of The Rec Center. Since that time, staff has met with members of the St. Louis
Park Hockey Association and prepared the guidelines for the feasibility study. The committee
selected RSP Architects to perform the feasibility study. Steven Maurelli, RSP Architects, is the
project manager for the study. Steven, along with his team, has previous experience working in
St. Louis Park (Wolfe Park Veterans’ Memorial Amphitheater) as well as experience in outdoor
refrigerated ice rink projects (Coon Rapids, Roseville, Reston, VA and Klamath Falls, OR).
The overall project is proposed to be built in phases. The scope of this project is a 200’ by 85’
refrigerated ice rink with related support spaces and site improvements. The site is in the
northwest corner of The Rec Center campus, on the west side of the original arena. Support
spaces include spectator seating, scoreboard, locker rooms, Zamboni and storage. The rink
ultimately is proposed to be covered in order to alleviate the need for snow removal from the
rink and to provide additional usage outside of the ice rink season
FINANCIAL OR BUDGET CONSIDERATION: The cost of the study is approximately
$10,000 and is being funded using the proceeds from the $200,000 Hockey Association donation
made to the City in late 2013. The cost of Phase I of the project is anticipated to be $ 1,575,372.
Of that amount, the Hockey Association will commit $500,000. Phase I includes the
construction of the rink, dasher boards, footings for a future roof and the plumbing connection to
allow for the refrigeration piece once the Rec Center refrigeration project is complete in 2016.
Phase II of the project is anticipated to be $3,088,475, for a total cost of $4,663,847. The Hockey
Association is willing to commit an additional $1 million for a total of $1.5 million. They would
like the ability to solicit sponsors for this project and believe they will be able to find sponsors to
help with the funding. In the Phase II portion of the project there are items in addition to the roof,
such as: team rooms, concessions, Zamboni and turf. It is possible to do Phase II with just the
roof and not these additional items. This can be further vetted as the process continues.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Feasibility Report from RSP Architects
Prepared by: Cindy S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 4
DISCUSSION
BACKGROUND: The Hockey Association and the City of St. Louis Park have a long history of
partnerships. They have participated financially in the east rink addition, the skate shop and the
public address system in the arena.
The intent is for this facility to be a year-round community asset. Although it will be primarily a
skating rink, the idea is to use this facility during the spring, summer and fall for other activities
and events. Phase II of the project includes the purchase of turf to place over the concrete slab
when the ice is not in place. Soccer, lacrosse, baseball and others can practice on the turf when
spring weather does not allow outdoor fields to be used. This space can also be used for other
activities without the turf; such as, craft fairs, pet expos, dog training, concerts, farmers markets,
and garage sales.
FEASIBILITY STUDY RESULTS: In order to utilize the existing infrastructure and facilitate
management of the rink, the new enclosed spaces (i.e. locker rooms, etc.) are adjacent to the
existing building. Additionally, to maintain egress from the West Arena, the rear elevation of the
new spectator seating matches the elevation of the egress doors from the existing arena. The rink
elevation is established to minimize excavation while taking advantage of the natural slope on
the site.
Twenty-two (22) parking stalls would be added along the west side of the new arena and there
will also be a drop-off area added along the north side of the rink. The additional stalls along
with the main Rec Center parking lot should be adequate in supporting the new rink’s operation.
The intention is to utilize the existing infrastructure wherever possible in lieu of duplicating
them. This is both an economic and maintenance consideration. The proposed scheme utilizes
the existing public restrooms for spectator use and the player restrooms in the lower level for
skater use. Existing concessions would also support the exterior rink. The Zamboni garage is
directly adjacent to the existing pool room in order to connect to the existing water lines and to
tie the ice melt pit into the existing sanitary lines.
Operationally, it was desirable to have a drop-off to allow direct access to the rink instead of
requiring access through the building from the main entrance. The current design of Phase II
provides an entry plaza at the same elevation as the existing drive. From the plaza, spectators
would go up steps or the ramp to the upper plaza that serves the exterior spectator seating and the
entrance to the West Arena. We believe this could become an asset both for identity and as a
means of managing ticketing into the West Arena for paid events, but more discussion will be
needed to ensure this access doesn’t complicate building management.
A copy of the feasibility study is attached.
NEED FOR OUTDOOR REFRIGERATED ICE: The Hockey Association has approximately
500 families involved in their program. They currently use ice at The Rec Center’s two existing
rinks and have a need for more hours than they are able to acquire at The Rec Center. They
purchase additional ice from a private company and from neighboring arenas. Building an
outdoor refrigerated rink would provide more hours of available ice for practices and games to
be played in the city.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project
Page 5
The idea of adding an outdoor refrigerated ice rink has been discussed by the Hockey
Association for nearly 20 years. While the committee has discussed a number of sites, their
preference is adjacent to The Rec Center. Staff and the Hockey Association believe there are
many synergies’ created by having this facility near The Rec Center. The idea is to create a year-
round community resource and gathering place. Although the youth Hockey Association will be
the primary users of this proposed facility, the intent is for this to be an asset used by many
groups at all times of the year.
NEXT STEPS: If there is an interest in continuing this discussion, staff will work with the
Hockey Association on schematic design, timelines and refining cost estimates. As a part of the
next step, a funding plan and potential partnerships will be identified.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project
Page 6
Meeting: Study Session
Meeting Date: October 27, 2014
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Outdoor Refrigerated Ice Schematic Design Presentation
RECOMMENDED ACTION: Staff desires direction on the policy question below.
POLICY CONSIDERATION: Is Council supportive of moving forward and authorizing staff
to negotiate and bring back to the Council for approval the final business terms with the Hockey
Association as to their participation in this project, as well as develop more details as to an
overall funding plan and a timeline for undertaking Design Development and Phase I
construction of the project?
SUMMARY: At the Study Session held on July 28, 2014, Council was presented with the
results of the feasibility study on the potential for an outdoor refrigerated ice rink at The Rec
Center. The site is in the northwest corner of The Rec Center campus. The Hockey Association
has discussed their desire for outdoor refrigerated ice for several years. While the Association
has discussed a number of sites, their preference is adjacent to The Rec Center. Staff and the
Hockey Association believe there are many synergies’ created by having this facility near The
Rec Center. The idea is to create a year-round community resource and gathering place. Staff has
worked with RSP Architects and members of the St. Louis Park Hockey Association to prepare a
schematic design for an outdoor refrigerated rink at the Rec Center. The scope of this project is a
covered 200’ by 85’ refrigerated outdoor ice rink with related support spaces (resurfacer storage
garage, parking) and additional future site improvements/amenities.
FINANCIAL OR BUDGET CONSIDERATION: The cost of the schematic design phase was
$34,089. This cost was split (50/50) with the Hockey Association.
The total estimated cost of the entire project (Phase I and II) is estimated at $5,635,657.
This project is being proposed in phases. Phase I of the project includes the complete
construction of the outdoor refrigerated rink, a fabric roof, ice resurfacer (Zamboni), resurfacer
storage garage and parking. The cost of Phase I of the project is estimated at $4,340,335. Phase
II of the project includes locker room space, viewing plaza, storage and the potential for other
site improvements (i.e. outdoor fire place, expanded pool deck seating; see alternates on attached
estimates); Phase II is anticipated to be $1,295,322. At this time the Hockey Association is
willing to commit a total of $1.5 million to the capital cost of the project. The specific source of
funds from the City still needs to be determined.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Schematic Design from RSP Architects
Cost Estimates from RJM
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cindy S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 7
DISCUSSION
BACKGROUND: The Hockey Association and the City of St. Louis Park have a long history of
partnerships. They have participated financially in the east rink addition, the skate shop
renovation, and the public address system in the arena.
The intent for this proposed facility is to be a year-round community asset. Although it will be
primarily a skating rink, the idea is to use this facility during the spring, summer and fall for
other activities and events. Staff has met with the soccer, lacrosse, baseball, and track youth
associations and all have expressed interest in using the facility for practice when spring weather
does not allow outdoor fields to be used. This space can also be used for other activities such as
craft fairs, pet expos, dog training, concerts, farmers markets, and garage sales.
SCHEMATIC DESIGN RESULTS: The Feasibility Study recommended locating the new
outdoor refrigerated ice rink and related facilities adjacent to the existing Rec Center building in
order to utilize the existing infrastructure and facilitate management of the rink. The current
“complete” design is still proposed as a phased implementation, and has been designed in a way
that allows the future phase to be built without major disruption to the first phase improvements.
Phase I consists of:
Refrigerated rink with adequate slab beyond dasher boards to restrain slab. There is also
an extended slab area to allow for placement of a temporary changing room.
Tensile roof
Ice resurfacer (Zamboni) garage
Parking to accommodate 38 stalls
Artificial turf (to be used seasonally when the ice comes out)
Phase II consists of:
Locker rooms
Storage
Viewing plaza
Potential for other site improvements (i.e. outdoor fire place, expanded pool deck space;
see alternates on attached estimates)
As presented in the feasibility study, the intention of the final design is to utilize the existing
infrastructure wherever possible in lieu of duplicating them. This is both an economic and
maintenance consideration. Operationally, it was desirable to have a drop-off to allow direct
access to the rink instead of requiring access through the building from the main entrance. The
current design of Phase II provides an entry plaza at the same elevation as the existing drive.
From the plaza, spectators would go up steps or the ramp to the upper plaza that serves the
exterior spectator seating and the entrance to the West Arena. We believe this could become an
asset both for identity and as a means of access for spectators.
A copy of schematic design is attached.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project
Page 8
SKATE PARK RELOCATION: There is $85,000 in the 2015 CIP budget to purchase new
skate park equipment. Regardless of whether the skate park changes locations, the equipment is
in need of replacement. Staff has some ideas of adding amenities like a “pump track” to be used
by bicycles and skate boarders. At this time, staff is recommending that the skate park move to
EDA owned property on the corner of Beltline and 36th Street. This keeps the skate park in the
same vicinity of The Rec Center that it is now. If at some point in the future the EDA has a
development proposal for this site, the skate park could be relocated.
NEED FOR OUTDOOR REFRIGERATED ICE: The Hockey Association has approximately
500 families involved in their program. They currently use ice at The Rec Center’s two existing
rinks and have a need for more hours than they are able to acquire at The Rec Center. They
purchase additional ice from a private company and from neighboring arenas. Building an
outdoor refrigerated rink would provide more hours of available ice for practices and games to
be played in the city.
The idea of adding an outdoor refrigerated ice rink has been discussed by the Hockey
Association for nearly 20 years. While the committee has discussed a number of sites, the
preferred location is at The Rec Center. Staff and the Hockey Association believe there are many
synergies’ created by having this facility near The Rec Center. The idea is to create a year-round
community resource and gathering place. Although the youth Hockey Association will be the
primary user of this proposed facility, the intent is for this to be an asset used by many groups at
all times of the year.
NEXT STEPS: If there is an interest in continuing the design process, it is recommended that
staff meet with the Hockey Association to finalize the financial commitment and terms of their
contribution. Once finalized, staff will present to Council the financial commitment agreement
with the recommendation of moving forward in the design process to design development. In
addition to finalizing the financing and operational expenses, staff would like to discuss the costs
associated with moving the skate park.
Staff proposes to come back to the Council by the end of the year with these details.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project
Page 9
Meeting: Study Session
Meeting Date: January 26, 2015
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Outdoor Refrigerated Ice Update
RECOMMENDED ACTION: Staff desires direction on the policy question below.
POLICY CONSIDERATION: Is Council supportive of authorizing staff to begin the next
phase of the design process, which is design development, and negotiate a specific written
agreement with the Hockey Association for the Councils consideration?
SUMMARY: At the Study Session held on October 27, 2014, Council was presented with the
results of the schematic design for an outdoor refrigerated ice rink at The Rec Center. The site is
in the northwest corner of The Rec Center campus. The Hockey Association has discussed their
desire for outdoor refrigerated ice for several years. While the Association has discussed a
number of sites, their preference is adjacent to The Rec Center. Staff and the Hockey Association
believe there are many synergies’ created by having this facility near The Rec Center. The idea is
to create a year-round community resource and gathering place. Staff has worked with RSP
Architects and members of the St. Louis Park Hockey Association to prepare a schematic design
for an outdoor refrigerated rink at the Rec Center. The scope of this project is a covered 200’ by
85’ refrigerated outdoor ice rink with related support spaces (resurfacer storage garage, parking)
and additional future site improvements/amenities.
FINANCIAL OR BUDGET CONSIDERATION: The cost estimate for the next phase -
design development - is $41,619. The total estimated cost of the entire project is $5,635,833.
This project is being proposed in one phase, per Councils direction from the October 27, 2014
Council Study Session. It includes the complete construction of the outdoor refrigerated rink, a
fabric roof, ice resurfacer (Zamboni), garage for the resurfacer, parking, locker room space,
viewing plaza, storage and the potential for other site improvements At this time the Hockey
Association is willing to commit a total of $1.55 million to the capital cost of the project. Thus
far the Hockey Association has deposited $300,000 with the City and proposes to repay the
remaining$1.25 million over time with a minimum payment of $100,000/yr. Attached is a letter
of intent outlining their contribution to the project.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Schematic Design from RSP Architects
Cost Estimates from RJM
SLP HA Letter of Intent
Draft Operating Pro Forma
Hockey Association Financial Review from Ehlers, Inc.
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cindy S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 10
DISCUSSION
BACKGROUND: The Hockey Association and the City of St. Louis Park have a long history of
partnerships. They have participated financially in the east rink addition, the skate shop
renovation, and the public address system in the arena.
The intent for this proposed facility is to be a year-round community asset. Although it will be
primarily a skating rink, the idea is to use this facility during the spring, summer and fall for
other activities and events. Staff has met with the soccer, lacrosse, baseball, and track youth
associations and all have expressed interest in using the facility for practice when spring weather
does not allow outdoor fields to be used. The cost of turf is included in this estimate. This space
can also be used for other activities such as craft fairs, pet expos, dog training, concerts, farmers
markets, and garage sales.
SCHEMATIC DESIGN RESULTS: The Feasibility Study recommended locating the new
outdoor refrigerated ice rink and related facilities adjacent to the existing Rec Center building in
order to utilize the existing infrastructure and facilitate management of the rink. The current
design includes:
Refrigerated rink with adequate slab beyond dasher boards and a Tensile (fabric) roof
Ice resurfacer (Zamboni) garage
Parking to accommodate 38 stalls
Artificial turf (to be used seasonally when the ice comes out)
Locker rooms
Storage
Viewing plaza
Potential for other site improvements as bid alternates (outdoor fire place, expanded pool
deck space, storage)
OCTOBER 24th QUESTIONS: At the October 24th study session, council requested additional
information from staff on the questions listed below; supporting information is provided.
Samples of roof material (to be shared at study session).
Operating Pro Forma (see attached).
Current building code/ordinance on use of tensile (fabric) roof material: currently there is
not an ordinance/code restricting the use of tensile (fabric) as a roof material. Community
Development staff will be in attendance at the study session should questions come up.
Why tensile (fabric) roof vs. steel? A tensile roof allows the roof to undulate more. This
allows the roof to be installed lower to the ground to help shield the facility (South from
winter sun; West from wind; North to follow the grade and not be so monumental).
Translucence will afford some "free" lighting. Aesthetics - Lighter structure reduces
visual weight and mass of the roof. Steel joists would require a soffit to protect from bird
nesting. RSP will be in attendance to address any questions.
Detailed payment breakdown of Hockey Association contribution and funding source for
City portion: see attached letter of intent from the Hockey Association. Thus far the
Hockey Association has deposited $300,000 with the City and proposes to repay the
remaining$1.25 million over time with a minimum payment of $100,000/yr. Project
financing would come from the sale of GO Bonds. Staff will also be pursuing grants for
the project.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 11
FINANCIAL OR BUDGET CONSIDERATION: The cost estimate of the next phase, design
development is $41,619. The total estimated cost of the entire project is $5,635,833.
This project is being proposed in one phase, per Council direction from the October 27, 2014
Council study session. It includes the complete construction of the outdoor refrigerated rink, a
fabric roof, ice resurfacer (Zamboni), garage for the resurfacer, parking, locker room space,
viewing plaza, storage and the potential for other site improvements At this time the Hockey
Association is willing to commit a total of $1.55 million to the capital cost of the project,
attached is an intent letter outlining their contribution to the project.
Staff asked Mark Ruff, Senior Financial Advisor/Director of Ehlers, Inc., to review the financial
status of the St. Louis Park Hockey Association and to identify any concerns regarding the
ability of the Association to continue to make annual capital contributions that they have
pledged. While there are always risks involved with undertaking this type of project with a youth
association, he believes that they are more stable and better governed than most youth
associations. Mark’s comments are attached to this report.
Operating Pro Forma: Staff has drafted an operating pro forma based on other outdoor arenas
and number of hours we hope to see ice/turf/dry floor activities. At this point in time, our hope is
to break even. The first year of operation will definitely be a year of learning for us. We are
proposing to sell outdoor ice at $90 and $100 per hour. Our hourly turf rate is $25 per hour. The
pro forma is attached.
SKATE PARK RELOCATION: There is $85,000 in the 2015 CIP budget to purchase new
skate park equipment. Regardless of whether the skate park changes locations, the equipment is
in need of replacement. Staff has some ideas of adding amenities like a “pump track” to be used
by bicycles and skate boarders. At this time, staff is recommending that the skate park move to
EDA owned property on the corner of Beltline and 36th Street. This keeps the skate park in the
same vicinity of The Rec Center that it is now. If at some point in the future the EDA has a
development proposal for this site, the skate park could be relocated.
NEED FOR OUTDOOR REFRIGERATED ICE: The Hockey Association has approximately
500 families involved in their program. They currently use ice at The Rec Center’s two existing
rinks and have a need for more hours than they are able to acquire at The Rec Center. They
purchase additional ice from a private company and from neighboring arenas. Building an
outdoor refrigerated rink would provide more hours of available ice for practices and games to
be played in the city.
NEXT STEPS: If there is an interest in continuing the design process, it is recommended that
staff move forward to design development. In addition, it is further recommended that staff begin
to negotiate a final agreement with the Hockey Association and begin plans to relocate the skate
park, possibly this summer.
Staff is asking for a decision on moving forward, as well as approval to move forward on the
entire project, by April 15th. This timeline will allow staff to design the necessary specs starting
in May for the refrigeration system replacement. The refrigeration system replacement of the
current Rec Center systems is scheduled for installation in the spring of 2016.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 12
If Council decides not to go ahead with the project now and does add it at a later date, the
increased cost in refrigeration would be $300,000 to build a stand along system. In addition,
there would need to be a building to house the outdoor refrigerated rink equipment at an
approximate cost of $100,000. The total additional cost would be $400,000 if a decision is made
to add the outdoor rink/refrigeration system at a later date.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 13
Meeting: Study Session
Meeting Date: May 26, 2015
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Presentation of Design Development Phase for Outdoor Rink/Multi-Use Facility
RECOMMENDED ACTION: Staff desires direction on the policy question below.
POLICY CONSIDERATION: Does the Council continue to support this project? If so staff
will move forward with the construction document phase of design for the project.
SUMMARY: At the City Council meeting of February 2, 2015, Council approved moving
forward with the next phase of the project and entering into a contract with RSP Architects for
the design development phase. The intent of this project is to build a facility that is a community
amenity used by many different types of activities including, but not limited to: hockey, soccer,
lacrosse, baseball, softball, football, farmers markets, concerts, pet expos, and wedding
receptions. The design development phase has provided the following deliverables:
Building detailing sheets showing stair and rail design, door/window systems and
preliminary glass selections, interior finish material (not colors), preliminary mechanical
unit sizing, light fixture layouts, etc.
A preliminary exterior material palette
Refined cost estimates will be provided to substantiate the budget.
Moving forward to the next phase of the project, construction documents would provide the
following deliverables:
Advance the design development drawings with technical details and notes that the project
will be built from.
RSP will provide a final interior color palette and material selections.
RSP will assist with the delineation of phasing and provide diagrammatic drawings as
appropriate.
Bidding documents will be prepared.
FINANCIAL OR BUDGET CONSIDERATION: The cost estimate for the construction
document phase of the project is $126,691. This would be paid from the park improvement fund
(includes donation made by the St. Louis Park Hockey Association). The total project estimate
increased by $199,078, mostly due to storm water retention system and refined roof design.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Revised Project Estimate
Project Renderings
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cynthia S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 14
DISCUSSION
BACKGROUND: The Hockey Association and the City of St. Louis Park have a long history
of partnerships. They have participated financially in the east rink addition, the skate shop
renovation, and the public address system in the arena.
The intent for this proposed facility is to be a year-round community asset. Although it will be
primarily a skating rink, the idea is to use this facility during the spring, summer and fall for
other activities and events. Staff has met with the soccer, lacrosse, baseball, and track youth
associations and all have expressed interest in using the facility for practice when spring weather
does not allow outdoor fields to be used. The cost of turf is included in this estimate. This space
can also be used for other activities such as craft fairs, pet expos, dog training, concerts, farmers
markets, and garage sales.
CHANGES IN COST ESTIMATES: The following defines the notable scope of work changes
and cost estimates that increased $199,078 from schematic design to current design development
plans.
Building expansion. More defined structure (footings and load bearing walls), roofing
material increase, added vestibule with aluminum doors, steel stud framing and
FRP/gypsum walls in storage room.
Roof Structure. Additional steel supports spanning between columns, increased steel
attachment for fabric, changed fabric to accommodate increased wind pressures and
individually controlled lights.
Asphalt. The drive lane/frontage road foot print was expanded.
Site Utilities. It was necessary to add to the storm retention system; a trench that drains
between building and rink.
Landscaping. Additional trees were added per code requirements. (47 trees at 2.5 " caliper
inch).
Bleachers. The bleachers will accommodate 370 people.
Scoreboard. Staff is hoping for financial assistance from the primary rink users to pay for
this.
The following are notable scope of work changes and cost estimates that decreased from the
schematic design to current design development plans.
Retaining walls: Less square feet of wall than earlier anticipated.
Earthwork: Cut and fill has been modified and decreased.
Additional capacity to refrigeration: This was accounted for in both the outdoor rink
project and the inside rink refrigeration change over. We have taken this out of the outdoor
rink project and shown this in the indoor project since it needs to be done for the indoor
project.
NEXT STEPS: If there is an interest in continuing the design process, it is recommended that
staff move forward with RSP Architects to the construction document (CD) phase. It is estimated
that the CD phase will take six weeks, which would allow us to get the project out to bid by
August. Based on the estimating done by RJM, staff believes our estimates reflect the current
bidding climate. In addition, it is further recommended that staff begin to negotiate a final
agreement with the Hockey Association and finalize the relocation of the skate park.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project
Page 15
Meeting: Study Session
Meeting Date: July 13, 2015
Written Report: 7
EXECUTIVE SUMMARY
TITLE: Update on Outdoor Rink Project - Hockey Association Agreement
RECOMMENDED ACTION: None at this time. Please let staff know of any questions you
might have.
POLICY CONSIDERATION: Are the provisions in the draft agreement with the St. Louis
Park Hockey Association in keeping with the Council’s expectations regarding their contribution
to the City for the construction of the outdoor rink/facility?
SUMMARY: At the Study Session held on May 26, 2015 Council was presented with the results
of the design development phase for an outdoor refrigerated ice rink at The Rec Center.
Direction was given to staff to begin working with RSP Architects and RJM Construction on the
construction document phase of design. RSP and RJM are in the process of completing this work
and will be presenting updated estimates and design at the July 20 Council meeting. At that
meeting the Council will be asked to authorize advertising for bids.
Staff has continued to discuss the details of an agreement with the St. Louis Park Hockey
Association for their commitment of $1.55 million towards the project. Further information
regarding this is addressed later in the report.
FINANCIAL OR BUDGET CONSIDERATION: The latest cost estimates for the entire
project, not including bid alternates, is $5,834,911.
At this time the Hockey Association is willing to commit a total of $1.55 million to the capital
cost of the project, which includes an additional $50,000 due to increases in project costs. Thus
far the Hockey Association has deposited $300,000 with the City and proposes to repay the
remaining $1.25 million over the next twelve (12) years with a minimum payment of $104,166
per year.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cindy S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 16
DISCUSSION
BACKGROUND: The Hockey Association and the City of St. Louis Park have a long history of
partnerships. They have participated financially in the east rink addition, the skate shop
renovation, and the public address system in the arena.
The intent of this proposed facility is to be a year-round community asset. Although it will be
primarily a skating rink, the idea is to use this facility during the spring, summer and fall for
other activities and events. Staff has met with the soccer, lacrosse, baseball, and track youth
associations and all have expressed interest in using the facility for practice when spring weather
does not allow outdoor fields to be used. The cost of turf is included in this estimate. This space
can also be used for other activities such as craft fairs, pet expos, dog training, concerts, farmers
markets, and garage sales.
HOCKEY ASSOCICATION AGREEMENT: With the assistance of the city attorney, staff
has been working with the St. Louis Park Hockey Association to finalize the details of an
agreement for the project. Details of the agreement include:
Hockey Association shall make a minimum payment of $104,166 annually, billed for half
of the minimum payment twice per year, for twelve (12) years, or until the balance of
$1.25 million is paid.
Hockey Association is committed to purchasing at least 150 hours of ice time on the
outdoor rink for the first ten (10) years of operation.
Hockey Association shall receive a $5 per hour ice time rate reduction from the outdoor
ice time rate.
Hockey Association shall have the first right of refusal on ice time reservation for each
operating season until September 1 of that operating season. After September 1 ice time
is available for purchase to the general public (except for times assigned for city
programs and events, such as open skate, open hockey, or city-sponsored programs).
The Hockey Association would like to begin a discussion with the City on possible naming and
advertising rights and opportunities for the outdoor rink. While the proposed agreement does not
address specifics related to this matter, the Hockey Association wanted the Council to be aware
of this interest. Staff will bring this item back to the City Council at a later date for discussion.
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 17
Meeting: City Council
Meeting Date: November 16, 2015
Action Agenda Item: 8e
EXECUTIVE SUMMARY
TITLE: Bid Tabulation: Reject Bids for the Outdoor Ice Rink Site Work and Grading Project
RECOMMENDED ACTION: Motion to reject bids for the Outdoor Ice Rink Site Work and
Grading Project and authorize re-advertisement for bids.
POLICY CONSIDERATION: Council is being asked to reject the bids now so that this project
can be rebid with all of the components at a later date.
SUMMARY: A total of five (5) bids were received for this project. We had estimated
$300,000-$350,000 for grading and site work. Due to the contamination found on site, the bids
came back about $350,000 higher. A summary of the bid results is as follows:
Company Bid Amount
Belair Sitework Services $660,987
Max Steininger $874,900
MN Utilities & Excavating $796,764
Park Construction $662,000
Veit Construction $922,415
As a result of the latest estimate on the entire project coming in over budget, staff has been
working with the architect on some re-design options as well as seeking grants to help fund the
project. This has delayed the overall project timeline and has resulted in the site work and
grading bids submitted to not be honorable by the low bid contractor with the revised timeline.
Staff recommends rejecting these bids and re-advertising the site work and grading, along with
all other components of the entire outdoor rink project in December 2015 and January 2016.
FINANCIAL OR BUDGET CONSIDERATION: Since the latest revised cost estimate on the
entire project is $7.1M, staff has been exploring ways to decrease the project cost and to bring in
additional revenue. By rebidding the project in December & January, we have become eligible
for grant funding through the Hennepin County ERF Grant. Staff has applied for $357,200 in
grant funding to help off-set the cost of grading.
In addition to applying for the Hennepin County ERF grant, staff has also applied for a Hennepin
County Youth Sports Grant in the amount of $300,000 to help offset the costs. If we receive
either of these grants, staff will bring the entire financial package to Council at the time we are
asking the City Council to approve bids to move ahead on the project. We anticipate this being at
a February 2016 City Council meeting.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: None
Prepared by: Jason Eisold, Rec Center Manager
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Nancy Deno, Deputy City Manager/HR Director
Special Study Session Meeting of February 16, 2016 (Item No. 1)
Title: Outdoor Arena Project Page 18
Special Study Session Meeting of February 16, 2016 (Item No. 1) Title: Outdoor Arena ProjectPage 19
Special Study Session Meeting of February 16, 2016 (Item No. 1) Title: Outdoor Arena ProjectPage 20
Special Study Session Meeting of February 16, 2016 (Item No. 1) Title: Outdoor Arena ProjectPage 21
Special Study Session Meeting of February 16, 2016 (Item No. 1) Title: Outdoor Arena ProjectPage 22
Meeting: Economic Development Authority
Meeting Date: February 16, 2016
Minutes: 3a
UNOFFICIAL MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
FEBRUARY 1, 2016
1. Call to Order
President Mavity called the meeting to order at 7:21 p.m.
Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Susan Sanger, Thom Miller, and Jake Spano.
Commissioners absent: None.
Staff present: Executive Director (Mr. Harmening), City Attorney (Mr. Mattick), Economic
Development Coordinator (Mr. Hunt), Senior Engineering Project Manager (Mr. Shamla), and
Recording Secretary (Ms. Batra).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes January 19, 2016
It was moved by Commissioner Lindberg, seconded by Commissioner Spano, to approve
the EDA minutes as presented.
The motion passed 7-0.
4. Approval of Agenda
The EDA agenda was approved as presented.
5. Reports
5a. Approval of EDA Disbursements
It was moved by Commissioner Spano, seconded by Commissioner Hallfin, to approve
EDA Disbursements.
The motion passed 7-0.
6. Old Business - None
7. New Business
Economic Development Authority Meeting of February 16, 2016 (Item No. 3a) Page 2
Title: Economic Development Authority Meeting Minutes of February 1, 2016
7a. Approve Sale of View Easement - 7015 Walker Street to Clear Channel
Outdoors Inc. Resolution No. 16-02.
Mr. Shamla presented the staff report regarding the proposed sale of a view easement on
the parcel located at 7015 Walker Street to Clear Channel Outdoors. Clear Channel
Outdoors would like to purchase a perpetual view easement from the EDA for its relocated
billboard at the NE quadrant of the Hwy 7 and Louisiana interchange. The total view
easement on the EDA property would be 806 square feet. The remaining easement, not
under setback, is 300 square feet. Mr. Shamla showed a slide to define the adjacent Clear
Channel parcel, which is also on the agenda for discussion with the City Council this
evening. Mr. Shamla explained that staff has been working with Clear Channel on terms
related to the acquisition of remnant parcels at Hwy 7 and Louisiana. The view easement
is part of those negotiations and Clear Channel has agreed to purchase it for $3,000.
It was moved by Commissioner Spano, seconded by Commissioner Lindberg, to adopt EDA
Resolution No. 16-02, approving the Sale of a View Easement at 7015 Walker Street to
Clear Channel Outdoors Inc.
Commissioner Sanger stated she does not support this proposal for several reasons. The
first is because she is a staunch supporter of eliminating billboards entirely because she
feels they are visual blight on the community. She explained she understands that a
majority of the Council previously supported relocating this billboard rather than buying it
out. She stated if this item this is approved the City will be paying approximately $500,000
to Clear Channel for their property without receiving much in return. She added that the
easement would protect the view of the billboard in perpetuity, even if Clear Channel no
longer owned the billboard. She stated the proposal did not make economic sense and
would interfere with future uses of the parcel. She explained that land uses change over
time and the City is ceding some control over future uses to Clear Channel and will receive
nothing in return.
Commissioner Lindberg asked what the plan was for the property moving forward. Mr.
Shamla responded that the intent is to build a pond, but the plan is still in the works and
could change.
Commissioner Brausen stated he is uncomfortable with provision 2c of the agreement
which appears to provide Clear Channel with the right to consequential damages in the
event that the easement is not preserved in the future. He explained normally the
entitlement would be for direct damages and this agreement seems to allow Clear Channel
to capture lost income that can be projected in the future. He stated he was also
uncomfortable with provision 2d, which gives Clear Channel the right to assign and
transfer the interest to anybody else in the future. He noted this would create a perpetual
right that Clear Channel could sell for economic benefit in the future. He explained
although he was uncomfortable with those provisions he will support this proposal because
it does enable the City to get the land that is desired for storm water and other future
purposes.
In response to President Mavity’s request for clarification of the provisions of the
agreement, Mr. Mattick explained the details of provisions 2c and 2d. He stated that he
considers both provisions to be somewhat standard.
Economic Development Authority Meeting of February 16, 2016 (Item No. 3a) Page 3
Title: Economic Development Authority Meeting Minutes of February 1, 2016
Commissioner Spano stated the proposal is for approximately 800 square feet and would
not limit the City’s ability to use the land. He stated that the deal is reasonable and
explained he is in support of this proposal.
Commissioner Hallfin explained that changing ownership of the billboard doesn’t change
the use of the land. He stated that he will support this proposal.
Commissioner Lindberg explained that the view easement would not limit the City’s future
use of the property. He stated that the proposal makes sense, and if the plan for the use of
the land is a storm water pond, then the proposal is important and reasonable.
The motion passed 6-1 (Commissioner Sanger opposed).
8. Communications - None
9. Adjournment
The meeting adjourned at 7:38 p.m.
______________________________________ ______________________________________
Melissa Kennedy, Secretary President
Meeting: Economic Development Authority
Meeting Date: February 16, 2016
Action Agenda Item: 7a
EXECUTIVE SUMMARY
TITLE: First Amendment to the Preliminary Development Agreement with PLACE
RECOMMENDED ACTION: Motion to Adopt EDA Resolution approving the First
Amendment to the Preliminary Development Agreement with PLACE.
POLICY CONSIDERATION: Does the EDA wish to approve the proposed First Amendment
extending the Preliminary Development Agreement with PLACE until February 28, 2017?
SUMMARY: On May 18, 2015, the EDA and City Council approved a Preliminary Development
Agreement with PLACE relative to preparing a feasible and acceptable plan for a major mixed-
use, mixed-income development located at 5725, 5925 and 5815 Highway 7 and 3520 Yosemite.
The Agreement terminates on February 29, 2016 unless it is extended. To date, all parties have
been meeting regularly, working diligently on their respective obligations, and making substantial
progress on the proposed project. Specifically, site due diligence has been conducted, a project
program has been developed, market studies, pro forma, appraisals and building massings
prepared, funding partners have been secured, sizable grants have been obtained (with more
pending), and four neighborhood meetings have been held. Yet much more work remains to bring
the proposed project to fruition.
PLACE has requested that the Preliminary Development Agreement be extended a year until
February 28, 2017. The extension is necessary to provide PLACE’s funding partners with continued
assurance of its ability to secure the subject properties for the proposed development. It is the
expectation of all parties that a formal Purchase and Redevelopment Contract could be reached by
the extended termination date.
FINANCIAL OR BUDGET CONSIDERATION: Under the proposed First Amendment,
PLACE remains obligated to reimburse the EDA for all out-of-pocket costs it incurs in connection
with review and analysis of the proposed Development prior to the extended termination date.
VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and
diverse housing stock.
SUPPORTING DOCUMENTS: Resolution
First Amendment
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, EDA Executive Director and City Manager
Economic Development AuthorityMeeting of February 16, 2016 (Item No. 7a) Page 2
Title: First Amendment to the Preliminary Development Agreement with PLACE
EDA RESOLUTION NO. 16-____
RESOLUTION APPROVING A FIRST AMENDMENT TO
THE PRELIMINARY DEVELOPMENT AGREEMENT
BETWEEN THE ST. LOUIS PARK ECONOMIC
DEVELOPMENT AUTHORITY, THE CITY OF ST. LOUIS
PARK, AND PLACE
BE IT RESOLVED BY the Board of Commissioners ("Board") of the St. Louis Park
Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows:
Recitals.
Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082, as
amended, the Authority administers its Redevelopment Project No. 1 (the “Project”), for the
purpose of facilitating the redevelopment of certain substandard property within the Project.
The Authority and the City of St. Louis Park (the “City”) own certain property (the
“Property”) within the Project, which Property has been the subject of certain preliminary
negotiations with PLACE (the “Developer”) for purposes of constructing a mixed-use (multi-
family residential and commercial), mixed-income development on the Property and related
parking, incorporating renewable energy sources including an anaerobic digester (the
“Development”).
1.03. The Authority, the City, and the Developer executed a Preliminary Development
Agreement, dated as of May 18, 2015 (the “Agreement”), providing for the performance of certain
activities on the part of the parties in preparation for the negotiation of a definitive Contract for Private
Redevelopment in connection with the Property.
1.04. The parties have negotiated and propose to execute a First Amendment to the
Agreement (the “First Amendment”) to extend the deadline for the completion of these preliminary
activities for a period of twelve months.
Section 2. First Amendment Approved.
2.01. The First Amendment as presented to the Board is hereby in all respects approved,
subject to modifications that do not alter the substance of the transaction and that are approved by
the President and Executive Director, provided that execution of the First Amendment by such
officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the First Amendment and any documents referenced therein requiring execution by
the Authority, and to carry out, on behalf of the Authority, its obligations thereunder.
2.03. Authority staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
Economic Development AuthorityMeeting of February 16, 2016 (Item No. 7a) Page 3
Title: First Amendment to the Preliminary Development Agreement with PLACE
Reviewed for Administration: Adopted by the Economic Development
Authority February 16, 2016
Thomas K. Harmening,
Executive Director
Anne Mavity, President
Attest:
Secretary
474975v1 MNI SA285-104
Economic Development AuthorityMeeting of February 16, 2016 (Item No. 7a) Page 4
Title: First Amendment to the Preliminary Development Agreement with PLACE
FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT (this
“Agreement”), dated February ___, 2016, by and between the St. Louis Park Economic Development
Authority, a public body corporate and politic under the laws of the State of Minnesota (the
“Authority”), the City of St. Louis Park, a Minnesota municipal corporation (the “City”), and PLACE,
a Minnesota nonprofit corporation (the “Developer”);
WITNESSETH:
WHEREAS, the Authority and the City desire to promote development of certain property
within Redevelopment Project No. 1 (the “Project”) in the City, located at 5725, 5925 and 5815
Highway 7 (the “City and Authority Property”) and 3520 Yosemite Avenue (the “Rail Property”
and together with the City and Authority Property, the “Property”); and
WHEREAS, the Property is made up of four parcels, of which the City and Authority Property
is owned by the City or the Authority, and the Rail Property is owned by the Hennepin County
Regional Rail Authority; and
WHEREAS, the City and Authority previously determined that it is in the best interests of the
City that the Developer be designated as the sole developer of the City and Authority Property during
the term of an initial Preliminary Development Agreement between the parties, dated as of May 18,
2015 (the “Initial Agreement”); and
WHEREAS, the parties have worked diligently to perform their obligations under the Initial
Agreement and now wish to extend the term of the Initial Agreement pursuant to this First
Amendment.
NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein, the Authority, the City and the Developer hereby agree as follows:
1. During the term of this First Amendment, the parties agree to continue working cooperatively
toward the goals outlined in the Initial Agreement, pursuant to its terms.
2. This First Amendment shall terminate by its terms if the governing bodies of the Authority
and City have not approved the Contract (as defined in the Initial Agreement) by February 28, 2017.
Upon such termination, the Developer remains obligated to pay any costs payable under paragraph
13 of the Initial Agreement that were incurred by the Authority and the City prior to such date.
18. Except as amended by this First Amendment, the Initial Agreement shall remain in full force
and effect. Upon execution, the Developer shall reimburse the Authority for all out-of pocket-costs
incurred by the Authority in connection with negotiating, drafting and approval of this First
Amendment.
(The remainder of this page is intentionally left blank.)
Economic Development AuthorityMeeting of February 16, 2016 (Item No. 7a) Page 5
Title: First Amendment to the Preliminary Development Agreement with PLACE
IN WITNESS WHEREOF, the City and Authority have caused this Agreement to be duly
executed in their name and behalf and their seal to be duly affixed hereto and the Developer has
caused this Agreement to be duly executed as of the date and year first above written.
PLACE ST. LOUIS PARK ECONOMIC
DEVELOPMENT AUTHORITY
By:
Its ______________________________ Its President
Its Executive Director
CITY OF ST. LOUIS PARK
Its Mayor
Its City Manager
473908v1 MNI SA285-104
Meeting: City Council
Meeting Date: February 16, 2016
Presentation: 2a
EXECUTIVE SUMMARY
TITLE: 2015 Human Rights Award Presentation
RECOMMENDED ACTION: No formal action is requested. The City Council is asked to join
the Human Rights Commission in recognizing Students Organizing Against Racism (SOAR) for
the 2015 Human Rights Award.
POLICY CONSIDERATION: None at this time.
BACKGROUND: The Human Rights Award recognizes individuals, groups, organizations or
businesses that have made an outstanding contribution toward increasing understanding and
cooperation between people of different backgrounds in St. Louis Park. The St. Louis Park Human
Rights Commission would like to recognize the organization, Students Organizing Against Racism
(SOAR), for the 2015 Human Rights Award.
2015 Human Rights Award Recipient: Students Organizing Against Racism (SOAR)
The St. Louis Park Students Organizing Against Racism (SOAR) organization started with a group
of students who wanted to examine and discuss recent national events and the larger state of racial
realities in the U.S. They partnered with a teacher to create an organization that would provide a
collaborative space for students to learn how to have conversations about race across races and
genders, discuss current racial dynamics and barriers at SLP High School, and provide a place of
change. The organization is open to all students.
SOAR benefits everyone at SLP. It fosters a space for deepening understanding of the role of race
and racism in SLP, while also developing skills of organizing and action. As Superintendent Mr.
Rob Metz has set a district vision of equity, this is one party of the school community moving
towards that goal.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: None
Prepared by: Breanna Freedman, Community Liaison
Reviewed by: John Luse, Chief of Police
Approved by: Tom Harmening
Meeting: City Council
Meeting Date: February 16, 2016
Presentation: 2b
EXECUTIVE SUMMARY
TITLE: Retirement Recognition Resolution for Housing Assistance Coordinator Cindy
Stromberg
RECOMMENDED ACTION: The Mayor is asked to read the Resolution and present plaque to
Cindy Stromberg for 34 years of service to the City of St. Louis Park.
POLICY CONSIDERATION: None at this time.
SUMMARY: City policy states that employees who retire or resign in good standing with over
20 years of service will be presented with a resolution from the Mayor, City Manager and City
Council.
Housing Assistance Coordinator Cindy Stromberg will be in attendance for the presentation at the
beginning of the meeting. The Mayor is asked to read the resolution and present Cindy with a
plaque in recognition of her years of service to the City.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Ali Timpone, HR Coordinator
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
City Council Meeting of February 16, 2016 (Item No. 2b) Page 2
Title: Retirement Recognition Resolution for Housing Assistance Coordinator Cindy Stromberg
RESOLUTION NO. 16-___
RESOLUTION OF THE
CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA,
RECOGNIZING THE CONTRIBUTIONS OF AND EXPRESSING APPRECIATION
TO HOUSING ASSISTANCE COORDINATOR CINDY STROMBERG
WHEREAS, Cindy Stromberg began her employment with the City of St. Louis Park 34 years
ago on February 2, 1982; and
WHEREAS, Cindy has worked her entire 34 years at the City of St. Louis Park in the
Community Development Department as the Housing Assistance Coordinator; and
WHEREAS, Cindy has been responsible for administering the Housing Authority’s Housing
Choice Voucher Program and has ensured that the Housing Authority consistently received HUD’s
“High Performer” status for the administration of the program; and
WHEREAS, Cindy has completed thousands of interviews with program participants,
processed thousands of rent certifications, and completed many housing inspections; and
WHEREAS, Cindy has always supported all program participants; advocating for both their
best interests and the interest of the program; and
WHEREAS, Cindy’s work has ensured that thousands of low and moderate income St. Louis
Park households were able to live in decent and safe housing that was also affordable; and
WHEREAS, Cindy plans to spend her retirement at her resort home up north, traveling,
working on home projects, volunteering, and pursuing her many interests;
NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park,
Minnesota, by this resolution and public record, would like to thank Cindy Stromberg for her great
contributions and 34 years of dedicated service to the City of St. Louis Park and wish her the best
in her retirement.
Reviewed for Administration: Adopted by the City Council February 16, 2016
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: February 16, 2016
Presentation: 2c
EXECUTIVE SUMMARY
TITLE: Recognition of Controller Brian Swanson’s 13 Years of Service
RECOMMENDED ACTION: The Mayor is asked to read the certificate and recognize Brian
Swanson for his 13 years of service to the City of St. Louis Park.
POLICY CONSIDERATION: None at this time.
SUMMARY: City policy states that employees who retire or resign in good standing with over
10 years of service will be presented with a framed certificate from the Mayor, City Manager and
City Council.
Brian Swanson has resigned after more than 13 years of service to the City. Brian will be in
attendance at this meeting. The Mayor is asked to read the certificate and present it to him in
recognition of his years of service.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Not applicable.
Prepared by: Ali Timpone, HR Coordinator
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: February 16, 2016
Presentation: 2d
EXECUTIVE SUMMARY
TITLE: Recognition of Donations
RECOMMENDED ACTION: Mayor to announce and express thanks and appreciation for the
following donations being accepted at the meeting and listed on the Consent Agenda:
From Amount For
American Legion $750
Westwood Hills Nature Center to print and distribute
Westwood Hills Nature Center wildflower coloring
books by Maggie Christiansen.
Prepared by: Debbie Fischer, Administrative Services Office Assistant
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: February 16, 2016
Minutes: 3a
UNOFFICIAL MINUTES
CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
JANUARY 25, 2016
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jake Spano. Gregg Lindberg, Tim Brausen, Steve Hallfin, Anne
Mavity, Thom Miller, and Susan Sanger.
Councilmembers absent: None.
Staff present: Deputy City Manager/Human Resources Director (Ms. Deno), Natural Resources
Coordinator (Mr. Vaughan), Director of Operations and Recreation (Ms. Walsh), Communications
Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Batra).
Guest: None
1. Future Study Session Agenda Planning – February 8, 2016
Ms. Deno presented the proposed Study Session agenda for February 8, 2016.
In response to Councilmember Miller’s suggestion, the Council discussed whistle quiet zones and
whether there is a need to add the topic to a future Study Session for discussion. The Council
decided to gather more information from residents before discussing the topic further, and the
County will contact the Council if the topic needs to be discussed.
Mayor Spano stated he would like to hold select Study Sessions at other facilities so the Council
can tour the City’s buildings.
Councilmember Brausen asked for clarification about the topic regarding water. Ms. Deno
confirmed that infrastructure, not water quality, will be discussed.
2. Emerald Ash Borer (EAB) Preparedness Plan Implementation
Ms. Walsh presented the staff report regarding the City’s plan to prepare for the imminent arrival
of Emerald Ash Borer (EAB). Mr. Vaughan explained the tree study that was conducted and
presented the Emerald Ash preparedness plan. The City has been grading the ash trees and
removing the poorer quality trees, which includes trees that have been trimmed by Xcel Energy
and trees with storm damage. He noted at this point some of the lesser desired ash trees still need
to be removed.
Mr. Vaughan proposed injecting ash trees with an insecticide that will kill beetles on contact using
a root flare injection so the chemical never gets outside of the tree. He stated if enough ash trees
are injected, infestation will be reduced. The City is proposing a 50% cost share with residents for
treating the trees. Treatment of trees in the parks would be funded 100% by the City.
Councilmember Lindberg asked if a resident has the option to decline to participate, and
Mr. Vaughan responded that participation is completely optional.
City Council Meeting of February 16, 2016 (Item No. 3a) Page 2
Title: Study Session Minutes of January 25, 2016
Councilmember Brausen confirmed that the City will lose all of the ash trees if nothing is done.
Mr. Vaughan agreed and explained that the EAB is slowly working its way through the metro area.
He noted the main problem with EAB is that there are no warning signs of infestation.
Councilmember Brausen stated his support of the preservation of the trees, but did not agree that
residents should have to share in the costs of treatment.
Councilmember Mavity confirmed that it will cost the City $15,000 to treat approximately 250
trees with a 50% cost share. She stated she would rather the City put the emphasis on planting
new trees.
Councilmember Sanger stated that the City owns the right-of-way and the City has the benefit;
therefore, the City should cover the entire cost of treatment. In response to Councilmember
Lindberg’s question about the boulevard trees, Mr. Vaughan clarified that all other costs are
covered by the City for the boulevard trees, with the exception of tree removal.
Councilmember Miller stated his agreement that the City should cover the whole cost of the
proposed plan. Councilmember Miller asked about EAB spreading if the residents choose not to
participate. Mr. Vaughan stated it could potentially cause a problem if residents didn’t participate.
Councilmember Hallfin asked if there are any unintended consequences from the insecticides. Mr.
Vaughan explained in-depth studies have not been conducted, but the chances of the bees getting
affected and/or chemical issues are very small. Councilmember Hallfin suggested the Council
allocate funds from the budget surplus to fund the proposal at 100%. Ms. Deno explained that the
funds already have recommended designations, but there is a small amount of discretionary funds
available for allocation.
Councilmember Sanger stated she would like the Council to discuss, at another Study Session, the
right-of-way and the inconsistencies and whether the City can produce one policy that would
define a blanket approach to apply to provide clarity. Councilmember Lindberg stated that he
would like to know where the Council has discretion.
Councilmember Mavity agreed that a more coherent policy, as Councilmember Sanger suggested,
would be beneficial. Councilmember Mavity stated she is looking for clarification on what costs
the Council is agreeing to pay, and explained the need to set parameters. Councilmember Sanger
clarified that, as she understands it, the City would pay for any trees that need to be treated. Mr.
Vaughan explained that the City is looking at treating 576 trees, plus a review of the remaining
trees. Ms. Deno explained that would be approximately $30,000 annually to inject half of the 576
trees.
Mayor Spano clarified, and Mr. Vaughan agreed, that the City is only buying time until the tree
dies and another one is planted in its place. Mr. Vaughan explained that each ash tree can only be
injected a finite number of times, so it’s just a matter of time until the trees must be replaced.
Councilmember Mavity stated that she would rather spend the money on infrastructure and
planting trees. Mr. Vaughan explained that the main priority is to maintain the tree canopy.
It was the consensus of the Council to fund the proposed plan at 100% ($30,000/year). Staff will
adjust the plan accordingly, and present it to the Council for review.
City Council Meeting of February 16, 2016 (Item No. 3a) Page 3
Title: Study Session Minutes of January 25, 2016
3. Off-Sale Liquor Licensing
Ms. Deno presented the staff report regarding off-sale liquor licenses. She recapped the
discussions on this matter over the last year.
Councilmember Mavity stated that State law has established guidelines for liquor stores, but these
guidelines do not govern our City. When looking at where C-2 zones are located in the City, the
zones are located in small neighborhoods. She stated she wants the Council to consider the effects
this has on small businesses. She explained that she doesn’t think a large liquor store will add
value to neighborhoods that define the City. She noted that Hopkins, with their Main Street, has
already instituted a size limitation of 5,000 square feet. For the above-stated reasons,
Councilmember Mavity proposed a size limitation of 5,000 square feet or less to keep the character
of the City.
Councilmember Miller stated his agreement of Councilmember Mavity’s proposal. He stated that
keeping the City’s character is a challenge for the City and is the Council’s goal. He asked how
the Council can ensure that the liquor stores are unique, independent, and build character as the
size limitation only addresses part of the problem.
Councilmember Sanger does not agree with limitations and stated she did not agree in comparisons
to state regulations on number of establishments and Minneapolis. Also, limiting the size of the
store is not fair, and the free market should be maintained.
Councilmember Lindberg stated he is willing to discuss this issue as a proximity issue. By limiting
size, smaller businesses cannot compete, because the larger stores would be grandfathered in. For
this reason, Councilmember Lindberg does not support a size limitation.
Councilmember Hallfin explained that he sees this issue from a few different angles. He stated
that size can and may be an issue in the future as a big box store could change the feel of the City.
He proposed a limitation of 9,000 square feet. Secondly, Councilmember Hallfin stated his
agreement with Councilmember Lindberg regarding the saturation of the area. He explained that
the City should discuss regulating the proximity of liquor stores to each other.
Councilmember Brausen suggested leaving the regulations as written without change as liquor is
a lawful product, and the market will regulate.
Councilmember Mavity stated that she doesn’t support raising the square footage to 9,000 as that
wouldn’t help the City.
Councilmember Sanger stated she is pleased to hear about the character of the neighborhoods and
would appreciate support on architectural design of the buildings in the neighborhoods.
Councilmember Miller asked about zoning at the light rail stations, and Councilmember Mavity
explained there was an overlay to change the zoning of those areas. Ms. Deno explained how the
zoning works in reference to C-2 districts and PUD’s.
Mayor Spano stated he supports limiting the size of liquor stores. Although it is regulating liquor
stores differently than other businesses, he explained that the proposal does make sense and is
warranted. He stated that he supports a limitation of 6,000 square feet. Mayor Spano explained
City Council Meeting of February 16, 2016 (Item No. 3a) Page 4
Title: Study Session Minutes of January 25, 2016
that four councilmembers are now supporting a size limitation; therefore, the Council needs to
settle on a number. Councilmember Hallfin clarified that he was more concerned with the
proximity issue, than the size issue. Mayor Spano stated that if the size of the store is limited, then
proximity may not be an issue.
Councilmember Lindberg’s concern on the size limitation conversation is that the Council has
discussed this issue, but the comments are not based on specifics. Also, the Council’s decision is
going to limit competition. In order to receive his vote, good rationale needs to be identified to
support the size limitation. Councilmember Miller stated that the City Attorney made it clear as
to in order to proceed with a size limitation, a rationale needs to be identified. Councilmember
Sanger stated that Councilmember Mavity’s theory does not have a legal basis.
Councilmember Mavity stated that a number needs to be agreed upon, as there are four supporters.
Ms. Deno stated that proximity has also been brought up. She suggested staff draw up a proposal
to see what that looks like, if desired. Then the Council can discuss the specifics in reference to
size versus proximity, as proximity might answer both questions and would be easier to identify
and explain. Councilmember Mavity stated she doesn’t believe that proximity addresses the issue
of the City’s uniqueness.
Mayor Spano clarified that there are two issues, size and proximity. Ms. Deno will direct staff to
review information from Hopkins, gather data on proximity, and present their findings at a future
Study Session.
4. Updated Draft 2016 Legislative Agenda
Ms. Deno presented the staff report regarding the Draft 2016 Legislative Agenda, which was edited
pursuant to the Council’s suggestions.
Mayor Spano and Councilmember Brausen both expressed their approval of the draft agenda.
Councilmember Mavity proposed that the “Serving our Seniors” portion be removed as it is
outdated. She explained that seniors are now included in a larger bonding proposal for affordable
housing at the legislature. Councilmember Mavity suggested replacing “Serving our Seniors” with
“Homes for All,” a different proposal that includes seniors.
Councilmember Miller stated his approval of the draft agenda as presented.
Councilmember Sanger asked for clarification about transportation funding, page 6 of the draft,
second bullet point, in reference to fiscal disparities. Ms. Deno clarified that this statement is a
generalized statement. In addition, Councilmember Sanger asked about what the last bullet point,
of that same section, is referring to. Ms. Deno explained the statement is a broad statement to
capture the funding. Councilmember Sanger suggested the wording be fine-tuned.
Mayor Spano stated that the bonding committee is not going to read the entire document so the
Council should not spend too much time on the details. He suggested pulling the last page to the
front of the document.
Councilmember Lindberg stated his agreement with the draft agenda, and with Councilmember
Mavity’s proposal on changing the senior housing portion.
City Council Meeting of February 16, 2016 (Item No. 3a) Page 5
Title: Study Session Minutes of January 25, 2016
Councilmember Hallfin stated that staff did a good job with the document. If needed, the Council
can reach out to the City’s legislators.
Communications/Meeting Check-In (Verbal)
Ms. Deno stated the annual award ceremony for the Fire Department is tomorrow starting at 7 p.m.
at Fire House #1. The Council is invited to attend.
The meeting adjourned at 8:20 p.m.
Written Reports provided and documented for recording purposes only:
5. December 2015 Monthly Financial Report
6. Fourth Quarter Investment Report October – December 2015
7. SWLRT Update
______________________________________ ______________________________________
Melissa Kennedy, City Clerk Jake Spano, Mayor
Meeting: City Council
Meeting Date: February 16, 2016
Minutes: 3b
UNOFFICIAL MINUTES
CITY COUNCIL MEETING
ST. LOUIS PARK, MINNESOTA
FEBRUARY 1, 2016
1. Call to Order
Mayor Spano called the meeting to order at 7:39 p.m.
Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne
Mavity, Thom Miller, and Susan Sanger.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Mattick), Economic
Development Coordinator (Mr. Hunt), Senior Planner (Mr. Walther), Assistant Zoning
Administrator (Mr. Morrison), City Clerk (Ms. Kennedy), Senior Engineering Project Coordinator
(Mr. Shamla) and Recording Secretary (Ms. Batra).
Guests: Robert Murphy (Japs-Olson, Chairman)
1a. Pledge of Allegiance
1b. Roll Call
2. Presentations - None
3. Approval of Minutes
3a. City Council Study Session Meeting Minutes January 11, 2016
It was moved by Councilmember Lindberg, seconded by Councilmember Miller, to approve
the City Council Study Session Meeting Minutes of January 11, 2016, as presented.
The motion passed 7-0.
It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to amend
the City Council Study Session Meeting Minutes of January 11, 2016.
Councilmember Mavity requested a change on page 6, in the third paragraph from the top.
The minutes erroneously stated, “Councilmember Mavity wanted to give a heads up to the
Council so that the Council doesn’t support those changes.” Instead, the minutes should
state “Councilmember Mavity provided background on the Metro Cities’ policy position
on Met Council appointments and reaffirmed that the City supports that approach.”
The motion passed 7-0.
3b. City Council Special Study Session Meeting Minutes January 19, 2016
City Council Meeting of February 16, 2016 (Item No. 3b) Page 2
Title: City Council Meeting Minutes of February 1, 2016
Councilmember Sanger requested a change to page 3, at the top, where it states that
Councilmember Sanger asked for additional information on whether it would be feasible
to delay. She explained that she did not make that statement. Councilmember Hallfin
stated that he made that statement.
Councilmember Sanger requested a change to page 4, fourth paragraph, which states in
part “Councilmember Sanger stated that if the item is used for the public…” She explained
that comment was made only with regard to street lights. Mayor Spano stated that he made
that statement.
It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to
approve the City Council Special Study Session Meeting Minutes of January 19, 2016, with
changes.
The motion passed 7-0.
3c. City Council Meeting Minutes January 19, 2016
It was moved by Councilmember Mavity, seconded by Councilmember Hallfin, to approve
the City Council Meeting Minutes of January 19, 2016, as presented.
The motion passed 7-0.
4. Approval of Agenda and Items on Consent Calendar Mavity and Lindberg
NOTE: The Consent Calendar lists those items of business which are considered to be routine
and/or which need no discussion. Consent items are acted upon by one motion. If discussion is
desired by either a Councilmember or a member of the audience, that item may be moved to an
appropriate section of the regular agenda for discussion.
4a. Accept for filing City Disbursement Claims for the period of December 26, 2015 through
January 22, 2016.
4b. Adopt the following Resolutions Imposing Civil Penalties for Liquor License Violations
according to the recommendation of the City Manager:
Resolution No. 16-012 imposing civil penalty for liquor license violation on
December 15, 2015, at Pei Wei Asian Diner, 5330 Cedar Lake Road, #600
Resolution No. 16-013 imposing civil penalty for liquor license violation on
December 15, 2015, at Raku Sushi & Lounge, 5371 16th Street West
Resolution No. 16-014 imposing civil penalty for liquor license violation on
December 10, 2015, at Sam’s Club, 3745 Louisiana Avenue South
Resolution No. 16-015 imposing civil penalty for liquor license violation on
December 10, 2015, at Smashburger, 8124 Highway 7
Resolution No. 16-016 imposing civil penalty for liquor license violation on
December 10, 2015, at Thanh Do, 8028 Minnetonka Blvd.
Resolution No. 16-017 imposing civil penalty for liquor license violation on
December 15, 2015, at Yangtze River Restaurant, 5625 Wayzata Blvd.
City Council Meeting of February 16, 2016 (Item No. 3b) Page 3
Title: City Council Meeting Minutes of February 1, 2016
4c. Adopt Resolution No. 16-018 for 2016 Liquor License Renewals for the license term of
March 1, 2016 through March 1, 2017.
4d. Adopt Resolution No. 16-019 approving a Master Subscriber Agreement for MN Court
Data Services for Governmental Agencies.
4e. Appoint members to St. Louis Park’s Station Design Committee.
4f. Approve the Purchase Agreement between the City and Clear Channel Outdoor, Inc. for the
parcel in the Northeast (NE) Quadrant of Highway 7 and Louisiana.
4g. Adopt Resolution No. 16-020 authorizing the special assessment for the repair of the sewer
service line at 3528 Xylon Avenue South, St. Louis Park, MN P.I.D. 18-117-21-42-0018.
4h. Adopt Resolution No. 16-021 authorizing the special assessment for the repair of the sewer
service line at 1816 Louisiana Avenue South, St. Louis Park, MN P.I.D. 05 -117-21-34-0085.
4i. Appoint Councilmember Tim Brausen as the primary representative and Gregg Lindberg as
the alternate to the Highway 169 Mobility Study Policy Advisory Committee.
4j. Adopt Resolution No. 16-022 n rescheduling the public hearing relative to the
establishment of the Wayzata Blvd Tax Increment Financing District within Redevelopment
Project Area No. 1 (a redevelopment district).
It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to
approve the Agenda as presented on the Consent Calendar; and to waive reading of all
resolutions and ordinances.
The motion passed 7-0.
5. Boards and Commissions - None
6. Public Hearings
6a. Japs-Olson - Public Hearing and First Reading of Ordinance Vacating
Easements
Mr. Morrison presented the staff report regarding the first reading of an ordinance vacating
a public sewer easement and sewer construction easements.
Mr. Morrison explained this request is part of a group, but had to be acted on separately
because a public hearing is required. The proposed ordinance will vacate two easements
that are in the way of the proposed addition. The easement that runs to the north of the
property is a storm water easement, which is not used at this time. A water main is being
used to the south, which needs to be relocated west of the site to Powell Road. Once the
water main has been relocated, the easement will be vacated, and the building project can
proceed.
Staff recommended that Council approve the first reading of the ordinance vacating a
public sewer easement and sewer construction easements and set the second reading of the
ordinance for February 15, 2016.
City Council Meeting of February 16, 2016 (Item No. 3b) Page 4
Title: City Council Meeting Minutes of February 1, 2016
Councilmember Lindberg clarified that the second reading will be held on February 16,
2016 due to the Presidents’ Day holiday.
Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed
the public hearing.
Councilmember Mavity and Councilmember Lindberg stated their support of this proposed
ordinance because, with this addition, Japs-Olson brings additional jobs to the City. In
addition, this project is a successfully executed collaborative effort with the City of Hopkins.
Mayor Spano stated that Japs-Olson has been a great member of the business community
in the City. He expressed his appreciation for the jobs Japs-Olson brings to the City, along
with their philanthropic work. Mayor Spano stated his support of this proposed ordinance.
It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to
approve First Reading of an Ordinance Vacating a Public Sewer Easement and Sewer
Construction Easements and set the Second Reading of Ordinance for February 16, 2016.
The motion passed 7-0.
6b. Public Hearing - Coffee House Holdings, Inc. dba Starbucks - On-Sale Wine
and 3.2% Malt Liquor License
Ms. Kennedy presented the staff report regarding an application from Coffee House
Holdings, Inc. dba Starbucks, for an On-Sale Wine and 3.2% Malt Liquor License for the
premises located at 3850 Grand Way.
Ms. Kennedy explained that the premises in question is approximately 2,100 square feet in
size and has indoor seating capacity for 70 and outdoor patio seating for 27. The request
is to allow liquor to be consumed in the indoor seating area as well as the outdoor patio.
She noted the business plan submitted by Starbucks includes a stipulation that alcohol will
not be sold on the premises until 2:00 p.m. on weekdays and until noon on weekends. She
stated the applicant had no plans at this time to extend their hours of operation. The
information submitted by the applicant also stated that baristas will be 21+ years of age
and alcohol will be only be served in either an original container or in a glass container. A
full background investigation was conducted and nothing was found to warrant denial of
the application.
Councilmember Sanger stated this is the first coffee shop that has asked to serve wine and
malt liquor. Parking requirements are different for this type of business, because the needs
are different for someone grabbing a coffee versus someone drinking a glass of wine. For
this reason, she requested that parking requirements for coffee shops be reviewed.
Councilmember Mavity stated that this business plan is a positive thing for the community
and, in particular, this area, so she supports the request. She stated that the Excelsior/Grand
area has sufficient parking to support this request; however, the larger question about
parking will be an ongoing issue so she doesn’t want to set a precedent if other coffee shops
decide to go down this same path.
Councilmember Mavity asked about food/liquor ratio requirements. Ms. Kennedy stated
that this type of business has to demonstrate a 60/40 ratio of food to liquor sales in order
City Council Meeting of February 16, 2016 (Item No. 3b) Page 5
Title: City Council Meeting Minutes of February 1, 2016
to be authorized to sell strong beer. On-sale intoxicating licensees must maintain a 50/50
split as a condition of their license. The 60/40 ratio is not a conditional requirement for a
wine license, it is exclusively tied to the authorization to sell strong beer. In response to
Councilmember Mavity’s question, Ms. Kennedy clarified that food sales would be tracked
across all hours the business is open, not just the hours during which alcohol is served.
Councilmember Mavity asked if the hours of operation for the business were set
independent of the City. Ms. Kennedy explained that currently the hours of operation are
independent of the City; however, the Council would need to revisit the issue if the
applicant requested to extend the current hours of operation because the license approval
was tied to the hours of operation submitted by the applicant in their business plan.
Councilmember Mavity noted the Council did receive correspondence from several
individuals inquiring about parking requirements and the measures in place to control the
service of alcohol.
In response to Councilmember Sanger’s question, Ms. Kennedy explained that coffee sales
would be included in the food sales reported by the license holder.
Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed
the public hearing.
It was moved by Councilmember Mavity, seconded by Councilmember Sanger, to approve
an application from Coffee House Holdings, Inc. dba Starbucks, for an On-Sale Wine and
3.2% Malt Liquor License for the premises located at 3850 Grand Way, including the
outdoor patio, for the license term beginning March 1, 2016.
The motion passed 7-0.
7. Requests, Petitions, and Communications from the Public – None
8. Resolutions, Ordinances, Motions and Discussion Items
8a. Japs-Olson West Expansion at 7500 Excelsior Blvd., Resolution No. 16-023,
Resolution No. 16-024, Resolution No. 16-025, and Resolution No. 16-026.
Mr. Morrison presented the staff report regarding the Japs-Olson West Expansion.
Mr. Morrison explained that Japs-Olson has been pursuing a plan to expand for over a year.
A municipal boundary adjustment was submitted and approved by the cities of St. Louis
Park and Hopkins, and the State. Japs-Olson is requesting an amendment to the land use
and zoning map to remove land that was given to the City of Hopkins and to include the
land that has been added to St. Louis Park. In addition, Japs-Olson is requesting that the
land added to St. Louis Park be guided Industrial and zoned General Industrial.
Japs-Olson is also requesting approval of a preliminary/final plat. The land is currently
unplatted and combines two lots so they are able to build across the existing property line.
Hennepin County requested a right-of-way dedication for future road improvement
purposes, and Japs-Olson amended the plat to reflect the dedication.
The major amendment before the Council is for the construction of the new 192,000 square
foot addition to the west and south. This addition also includes a ten-foot masonry wall on
the northwest corner of the property to screen the expanded loading/service facility. The
City Council Meeting of February 16, 2016 (Item No. 3b) Page 6
Title: City Council Meeting Minutes of February 1, 2016
parking was reviewed earlier in 2015 and does meet all requirements for the site. The site
meets the setback requirements and the landscaping required by code.
Mr. Morrison discussed the proposed architecture for the addition. Japs-Olson is
requesting an alternative design than what is required by code. He noted the City Code
gives the Council the authority to approve alternative plans. Japs-Olson is requesting a
variation in building wall deviations, because the breaks would interfere with the layout
due to the large pieces of machinery used in the printing business. Instead, Japs-Olson is
proposing glass panels that will provide a vertical visual break. No sunlight can go into
the building so Japs-Olson is proposing spandrel glass instead of windows. The spandrel
glass matches the same tint as the office windows of the existing building.
Mr. Morrison reviewed the request for a conditional use permit to excavate approximately
35,000 cubic yards of material.
As noted earlier, Councilmember Mavity stated she is very supportive of this project.
Councilmember Brausen stated that he appreciates the City of Hopkins’ cooperation and
work to help facilitate this development.
It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to adopt
Resolution No. 16-023, approving the application for a Comprehensive Plan Land Use
Map Amendment as recommended by Staff; to approve the first reading to Adopt an
Ordinance amending the Zoning Map, and set a second reading for February 15, 2016; to
adopt Resolution No. 16-024, approving the preliminary and final plat of Japs-Olson
Addition, subject to conditions recommended by Staff; to adopt Resolution No. 16-025,
approving a major amendment to a Special Permit to approve a 192,000 square foot
expansion, subject to conditions recommended by Staff; and, to adopt Resolution No. 16-
026, approving a Conditional Use Permit (CUP) for the export/import of more than 400
cubic yards of material, subject to conditions recommended by Staff.
The motions passed 7-0.
8b. Rules and Procedures for Boards and Commissions
Ms. Kennedy presented the staff report regarding the Rules and Procedures for Boards and
Commissions. She explained this topic has also been discussed by the Council on several
occasions at Study Sessions.
Ms. Kennedy reviewed the proposed changes, including setting uniform term expiration
dates for all board and commission members, establishing three year terms for all board
and commission members (with the exception of the Housing Authority and youth
commissioners), standardizing the application and appointment processes so they occur at
the same time annually, implementing an online application system and requiring all
candidates, including those seeking reappointment, to go through the application process.
She noted the Council also asked staff to develop a standard procedure for evaluating
applications and selecting candidates for interviews. She stated the proposed changes were
developed to make the process more efficient and more transparent.
Councilmember Brausen stated he appreciates the work staff put into this project and
agrees uniformity is needed. He explained concerns have been raised from board and
commission members that it’s not clear how to communicate with the City Manager and
the Council. In response to these concerns, Councilmember Brausen proposed to add the
City Council Meeting of February 16, 2016 (Item No. 3b) Page 7
Title: City Council Meeting Minutes of February 1, 2016
following to Section B, Staff Liaisons, “Staff liaisons should also serve as a conduit for
information and assignments from the City Council and the City Manager to a board or
commission. Staff liaisons should communicate all requests from a board or commission
to the City Manager, appropriate department director, and the Council, as requested.” In
addition, Councilmember Brausen also proposed to add the following language to Section
J, Annual Written Report, “Annual reports should also include any areas that the board or
commission requests Council direction, assistance, or other action on.”
Mayor Spano clarified that Councilmember Brausen is making a motion to amend the
proposed rules and procedures.
It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to amend
the proposed Rules and Procedures for Boards and Commissions to include the additional
language as proposed by Councilmember Brausen to Sections B and J.
Councilmember Mavity explained the proposed changes to the Rules and Procedures bring
transparency to the process and a way to stay in touch with the community’s visions and
needs. She stated she is happy to support these changes with the additions suggested by
Councilmember Brausen.
Councilmember Miller asked if Staff has any issues with Councilmember Brausen’s proposed
additions. Ms. Kennedy stated staff does not see any issues with the proposed changes.
The motion passed 7-0.
It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to adopt
Resolution No. 16-027, amending and restating Resolution No. 12-069 approving Rules
and Procedures for Boards and Commissions, with changes.
The motion passed 7-0.
9. Communications
Councilmember Sanger stated on February 9, 2016, the City’s Historical Society is having
a fun event on beer, alcohol and prohibition at Steel Toe Brewery at 6:00 p.m.
Councilmember Brausen noted on the Consent Agenda there was an item imposing civil
penalties against establishments for liquor license violations. He wanted to assure the
public that regular liquor license compliance checks are done and the City does penalize
those who are found to be in violation of the provisions of State law and the City Code.
Councilmember Lindberg stated the 2016 Neighborhood Leaders Forum will be held on
February 4, 2016, in Council chambers.
10. Adjournment
The meeting adjourned at 8:20 p.m.
______________________________________ ______________________________________
Melissa Kennedy, City Clerk Jake Spano, Mayor
.
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4a
EXECUTIVE SUMMARY
TITLE: Boulevard Tree and Stump Removal Contract for 2016 – 2018
RECOMMENDED ACTION: Motion to execute a three year contract with YTS Companies for
the 2016 - 2018 Boulevard Tree and Stump Removal Program, in an amount not to exceed $57,100
annually.
POLICY CONSIDERATION: Does the City Council wish to continue our policy of providing
a 50% subsidy for boulevard tree removal?
SUMMARY: Since 2004 the city has implemented a cost sharing program for all boulevard tree
removals with the impacted property owner and the city equally sharing the cost of removal of the
diseased/condemned tree and its stump. The city hires the contractor to perform all of the related
tree removal work.
In January 2016, staff obtained price quotes from three firms. The City received the lowest quote
from YTS Companies to perform this work. YTS Companies has successfully performed similar
contracts for the cities of Coon Rapids, Bloomington, Cottage Grove and St. Paul.
QUOTES RECEIVED:
YTS Companies ................................$57,100.00
A Tree Service, Inc.…………………$69,618.25
Precision Landscape & Tree ………..$75,080.00
FINANCIAL OR BUDGET CONSIDERATION: As in the past, staff will closely monitor the
contractual obligations and work of the contractor. The City portion of this is budgeted for in the
Operations and Recreation budget.
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: Stacy Voelker, Senior Office Assistant
Jim Vaughan, Natural Resources Coordinator
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4b
EXECUTIVE SUMMARY
TITLE: Diseased Tree Removal on Private Property for 2016, 2017 & 2018
RECOMMENDED ACTION: Motion to execute a three year contract with YTS Companies for
the removal of diseased trees on private property for 2016- 2018, in an amount not to exceed
$39,619.00 annually.
POLICY CONSIDERATION: Is the City Council supportive of staff continuing to inspect and
coordinate removal of diseased trees on private property?
SUMMARY: The city has been participating in the removal of diseased trees on private property
for more than 31 years. The city’s role in this process is to identify, mark and facilitate removal of
the diseased trees and administer the program.
The city hires a contractor to remove trees on private property; property owners will reimburse the
city for the entire cost of private tree removals. The property owners always have the option of
selecting their own contractor as long as they are licensed in the City of St. Louis Park.
In January 2016, staff obtained price quotes from three firms. YTS Companies provided the lowest
quote to perform this work. YTS Companies has successfully performed similar tree removal
contracts for the cities of Coon Rapids, Bloomington, Cottage Grove and St. Paul.
PRICE QUOTES:
YTS Companies. ...............................$39,619.00
Natures Trees, Inc. (SavaTree). .........$48,510.00
Precision Landscape & Tree, Inc. ......$64,280.00
FINANCIAL OR BUDGET CONSIDERATION: As in the past, staff will closely monitor the
contractual obligations and work of the contractor.
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: Stacy Voelker, Senior Office Assistant
Jim Vaughan, Natural Resources Coordinator
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: February 16, 2016
EXECUTIVE SUMMARY
TITLE: Second Reading of Ordinance Vacating Easements for Japs-Olson Company
RECOMMENDED ACTIONS: Motion to Adopt Ordinance vacating two drainage and utility
easements, and approve the summary ordinance for publication.
POLICY CONSIDERATION: Not Applicable
SUMMARY: The applicant is requesting the vacation of two easements. One easement covers a
storm line which is no longer in use. The other covers a municipal water main. The applicant will
be relocating the water main to the Powell Road and Excelsior Boulevard right-of-ways prior to
construction of the building addition. After the utility is moved, then the easement will be vacated.
The Engineering Department is recommending approval of vacating both easements with the
condition that the easement covering the water main not be vacated until the water main is
relocated. This condition allows the Council to approve the vacation now, but it won’t take effect
until after the water main has been relocated.
Legal descriptions and depictions of the subject area are included in the attached ordinance.
The City Council held a public hearing on February 1, 2016, and approved the first reading of the
ordinance.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable. The water main relocation
costs will be the responsibility of the applicant.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Ordinance
Ordinance Summary for Publication
Prepared by: Gary Morrison, Assistant Zoning Administrator
Reviewed by: Sean Walther, Planning & Zoning Supervisor
Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, City Manager
Consent Agenda Item: 4c
City Council Meeting of February 16, 2016 (Item No. 4c) Page 2
Title: Second Reading of Ordinances Vacating Easements for Japs-Olson Company
ORDINANCE NO._____-16
AN ORDINANCE VACATING PUBLIC DRAINAGE
AND UTILITY EASEMENTS
AT 7500 EXCELSIOR BOULEVARD
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
Section 1. A petition in writing signed by a majority of all of the owners of all property
abutting upon both sides of the easements proposed to be vacated has been duly filed. The notice
of said petition has been published in the St. Louis Park Sailor on January 21, 2016 and the City
Council has conducted a public hearing upon said petition and has determined that the easements
are not needed for public purposes, and that it is for the best interest of the public that said
easements be vacated.
Section 2. The easements described on attached Exhibit “A” and depicted on Exhibit
“B” as now dedicated and laid out within the corporate limits of the City of St. Louis Park are
hereby vacated.
Section 3. This Ordinance shall take effect upon relocation of the utilities and
acceptance of the relocated water main by the City of St. Louis Park, but not less than fifteen days
after its publication.
Section 4. The City Clerk is instructed to record certified copies of this ordinance in
the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be
upon confirmation of the Director of Engineering’s acceptance of relocated water line.
First Reading February 1, 2016
Second Reading February 16, 2016
Date of Publication February 25, 2016
Date Ordinance may take effect March 11, 2016
Reviewed for Administration Adopted by the City Council February 16, 2016
City Manager Mayor
Attest: Approved as to Form and Execution:
City Clerk City Attorney
City Council Meeting of February 16, 2016 (Item No. 4c) Page 3
Title: Second Reading of Ordinances Vacating Easements for Japs-Olson Company
EXHIBIT “A”
LEGAL DESCRIPTIONS
A 10 foot easement for drainage purposes over part of the Southwest Quarter of the Northwest
Quarter and of the Northwest Quarter of the Southwest Quarter of Section 20, Township 117,
Range 21, the centerline of which is described as follows: Commencing at the intersection of a
line distant 33 feet West of the East line of said Southwest Quarter of the Northwest Quarter with
the South line of Powell Road as opened per Document Number 2890680; thence North 89 degrees
46 minutes West, assumed bearing, along said South line of Powell Road, 147.52 feet to the actual
point of beginning of the center line to be described; thence South 19 degrees 53 minutes West,
16.23 feet; thence North 89 degrees 27 minutes 40 seconds West, 270.46 feet; thence South 64
degrees 48 minutes 30 seconds West, 73.48 feet; thence North 82 degrees 20 minutes 45 seconds
West, 41.05 feet; thence North 38 degrees 28 minutes 05 seconds West, 34.04 feet; thence South
51 degrees 06 minutes 20 seconds West, 66.43 feet; thence South 0 degrees 11 minutes 40 seconds
East, 446.83 feet; thence South 59 degrees 05 minutes 13 seconds West, 255.14 feet, to its
intersection with the East line of said Powell Road, and there terminating.
AND
The following easement for water and sewer lines and other public utilities in Section 20,
Township 117, Range 21, to-wit:
A strip of land twenty (20) feet in width, being ten (10) feet on each side of the following described
line: Commencing at a point in the center line of Excelsior Avenue distant six hundred ninety-five
(695) feet Easterly from the West line of Section Twenty (20), Township One Hundred Seventeen
(117), Range Twenty-one (21), measured along the center line of said Avenue, which is the point
of beginning; thence North parallel with the West line of said section a distance of six hundred
fifty-five (655) feet, more or less, to a point which is ten (10) feet directly North of the North line
of the Northwest Quarter (NW 1/4) of the Southwest Quarter (SW ¼) of said Section Twenty (20);
thence Westerly ten (10) feet distant from and parallel with the North line of the Northwest Quarter
(NW 1/4) of the Southwest Quarter (SW 1/4) to the East line of Powell Road a distance of two
hundred forty (240) feet, more or less.
City Council Meeting of February 16, 2016 (Item No. 4c) Title: Second Reading of Ordinances Vacating Easements for Japs-Olson CompanyPage 4
City Council Meeting of February 16, 2016 (Item No. 4c) Page 5
Title: Second Reading of Ordinances Vacating Easements for Japs-Olson Company
SUMMARY
ORDINANCE NO.____-16
AN ORDINANCE VACATING PUBLIC DRAINAGE
AND UTILITY EASEMENTS AT
7500 EXCELSIOR BOULEVARD
This ordinance states that public drainage and utility easements at 7500 Excelsior Boulevard will
be vacated.
Adopted by the City Council February 16, 2016
Jake Spano /s/
Mayor
A copy of the full text of this ordinance is available for inspection with the City Clerk.
Published in St. Louis Park Sailor: TBD
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4d
EXECUTIVE SUMMARY
TITLE: Retirement Recognition Resolution for Housing Assistance Coordinator Cindy
Stromberg
RECOMMENDED ACTION: Motion to Adopt Resolution to recognize Housing Assistance
Coordinator Cindy Stromberg for her 34 years of service to the City of St. Louis Park.
POLICY CONSIDERATION: None at this time.
SUMMARY: City policy states that employees who retire or resign in good standing with over
20 years of service will be presented with a resolution from the Mayor, City Manager and City
Council.
This consent item will officially adopt the resolution that honors Cindy for her years of service.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Ali Timpone, HR Coordinator
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
City Council Meeting of February 16, 2016 (Item No. 4d) Page 2
Title: Retirement Recognition Resolution for Housing Assistance Coordinator Cindy Stromberg
RESOLUTION NO. 16-___
RESOLUTION OF THE
CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA,
RECOGNIZING THE CONTRIBUTIONS OF AND EXPRESSING APPRECIATION
TO HOUSING ASSISTANCE COORDINATOR CINDY STROMBERG
WHEREAS, Cindy Stromberg began her employment with the City of St. Louis Park 34
years ago on February 2, 1982; and
WHEREAS, Cindy has worked her entire 34 years at the City of St. Louis Park in the
Community Development Department as the Housing Assistance Coordinator; and
WHEREAS, Cindy has been responsible for administering the Housing Authority’s Housing
Choice Voucher Program and has ensured that the Housing Authority consistently received HUD’s
“High Performer” status for the administration of the program; and
WHEREAS, Cindy has completed thousands of interviews with program participants,
processed thousands of rent certifications, and completed many housing inspections; and
WHEREAS, Cindy has always supported all program participants; advocating for both their
best interests and the interest of the program; and
WHEREAS, Cindy’s work has ensured that thousands of low and moderate income St.
Louis Park households were able to live in decent and safe housing that was also affordable; and
WHEREAS, Cindy plans to spend her retirement at her resort home up north, traveling,
working on home projects, volunteering, and pursuing her many interests;
NOW THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis
Park, Minnesota, by this resolution and public record, would like to thank Cindy Stromberg for
her great contributions and 34 years of dedicated service to the City of St. Louis Park and wish her
the best in her retirement.
Reviewed for Administration: Adopted by the City Council February 16, 2016
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4e
EXECUTIVE SUMMARY
TITLE: Accept Monetary Donation from American Legion to Westwood Hills Nature Center
($750)
RECOMMENDED ACTION: Motion to Adopt Resolution approving acceptance of a
monetary donation from American Legion in the amount of $750 for Westwood Hills Nature
Center to print Westwood Hills Nature Center wildflower coloring books by Maggie
Christiansen, Girl Scout Silver Award candidate.
POLICY CONSIDERATION: Does the City Council wish to accept the gift with restrictions
on its use?
SUMMARY: State statute requires City Council’s acceptance of donations. This requirement is
necessary in order to make sure the City Council has knowledge of any restrictions placed on the
use of each donation prior to it being expended.
The American Legion is graciously donating $750 to Westwood Hills Nature Center.
The donation is given with the restriction that it be used by Westwood Hills Nature Center to
print and distribute Westwood Hills Nature Center wildflower coloring books by Maggie
Christiansen.
FINANCIAL OR BUDGET CONSIDERATION: This donation will be used by Westwood
Hills Nature Center to print Westwood Hills Nature Center wildflower coloring books by
Maggie Christiansen.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Carrie Mandler, Westwood Hills Nature Center Secretary
Mark Oestreich, Westwood Hills Nature Center Manager
Reviewed by: Cindy Walsh, Director of Operations & Recreation
Approved by: Tom Harmening, City Manager
City Council Meeting of February 16, 2016 (Item No. 4e) Page 2
Title: Accept Monetary Donation from American Legion to Westwood Hills Nature Center ($750)
RESOLUTION NO. 16-____
RESOLUTION APPROVING ACCEPTANCE OF DONATION
IN THE AMOUNT OF $750 TO BE USED BY
WESTWOOD HILLS NATURE CENTER TO PRINT and DISTRIBUTE WESTWOOD
HILLS NATURE CENTER WILDFLOWER COLORING BOOKS BY MAGGIE
CHRISTIANSEN
WHEREAS, The City of St. Louis Park is required by State statute to authorize
acceptance of any donations; and
WHEREAS, the City Council must also ratify any restrictions placed on the donation by
the donor; and
WHEREAS, American Legion donated $750 to be used by Westwood Hills Nature
Center to print Westwood Hills Nature Center wildflower coloring books by Maggie
Christiansen.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis
Park that the gift is hereby accepted with thanks to American Legion with the understanding that
it must be used by Westwood Hills Nature Center to print Westwood Hills Nature Center
wildflower coloring books by Maggie Christiansen.
Reviewed for Administration Adopted by the City Council February 16, 2016
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4f
EXECUTIVE SUMMARY
TITLE:
First Amendment to the Preliminary Development Agreement with PLACE
RECOMMENDED ACTION: Motion to Adopt Resolution approving the First Amendment to
the Preliminary Development Agreement with PLACE.
POLICY CONSIDERATION: Does the City Council wish to approve the proposed First
Amendment extending the Preliminary Development Agreement with PLACE until February 28,
2017?
SUMMARY: On May 18, 2015, the EDA and City Council approved a Preliminary Development
Agreement with PLACE relative to preparing a feasible and acceptable plan for a major mixed-
use, mixed-income development located at 5725, 5925 and 5815 Highway 7 and 3520 Yosemite.
The Agreement terminates on February 29, 2016 unless it is extended. To date, all parties have
been meeting regularly, working diligently on their respective obligations, and making substantial
progress on the proposed project. Specifically, site due diligence has been conducted, a project
program has been developed, market studies, pro forma, appraisals and building massings
prepared, funding partners have been secured, sizable grants have been obtained (with more
pending), and four neighborhood meetings have been held. Yet much more work remains to bring
the proposed project to fruition.
PLACE has requested that the Preliminary Development Agreement be extended a year until
February 28, 2017. The extension is necessary to provide PLACE’s funding partners with continued
assurance of its ability to secure the subject properties for the proposed development. It is the
expectation of all parties that a formal Purchase and Redevelopment Contract could be reached by
the extended termination date.
FINANCIAL OR BUDGET CONSIDERATION: Under the proposed First Amendment,
PLACE remains obligated to reimburse the EDA for all out-of-pocket costs it incurs in connection
with review and analysis of the proposed Development prior to the extended termination date.
VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and
diverse housing stock.
SUPPORTING DOCUMENTS: Resolution
First Amendment
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, EDA Executive Director and City Manager
City CouncilMeeting of February 16, 2016 (Item No. 4f) Page 2
Title: First Amendment to the Preliminary Development Agreement with PLACE
CITY OF ST. LOUIS PARK
RESOLUTION NO. 16-____
RESOLUTION APPROVING A FIRST AMENDMENT TO
THE PRELIMINARY DEVELOPMENT AGREEMENT
BETWEEN THE ST. LOUIS PARK ECONOMIC
DEVELOPMENT AUTHORITY, THE CITY OF ST. LOUIS
PARK, AND PLACE
BE IT RESOLVED BY the City Council (the “Council”) of the City of St. Louis Park,
Minnesota (the “City”) as follows:
Section 1. Recitals.
1.01. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082,
as amended, the St. Louis Park Economic Development Authority (the “Authority”) administers
its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment
of certain substandard property within the Project.
1.02. The City and the Authority own certain property (the “Property”) within the Project,
which Property has been the subject of certain preliminary negotiations with PLACE (the
“Developer”) for purposes of constructing a mixed-use (multi-family residential and commercial),
mixed-income development on the Property and related parking, incorporating renewable energy
sources including an anaerobic digester (the “Development”).
1.03. The City, the Authority, and the Developer executed a Preliminary Development
Agreement, dated as of May 18, 2015 (the “Agreement”), providing for the performance of certain
activities on the part of the parties in preparation for the negotiation of a definitive Contract for Private
Redevelopment in connection with the Property.
1.04. The parties have negotiated and propose to execute a First Amendment to the
Agreement (the “First Amendment”) to extend the deadline for the completion of these preliminary
activities for a period of twelve months.
Section 2. First Amendment Approved.
2.01. The First Amendment as presented to the Council is hereby in all respects approved,
subject to modifications that do not alter the substance of the transaction and that are approved by
the Mayor and City Manager, provided that execution of the First Amendment by such officials
shall be conclusive evidence of approval.
2.02. The Mayor and City Manager are hereby authorized to execute on behalf of the
City the First Amendment and any documents referenced therein requiring execution by the City,
and to carry out, on behalf of the City, its obligations thereunder.
2.03. City staff and consultants are authorized to take any actions necessary to carry out
the intent of this resolution.
City CouncilMeeting of February 16, 2016 (Item No. 4f) Page 3
Title: First Amendment to the Preliminary Development Agreement with PLACE
Reviewed for Administration: Adopted by the City Council February 16, 2016
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest:
Melissa Kennedy, City Clerk
474974v1 MNI SA285-104
City CouncilMeeting of February 16, 2016 (Item No. 4f) Page 4
Title: First Amendment to the Preliminary Development Agreement with PLACE
FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT
THIS FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT (this
“Agreement”), dated February ___, 2016, by and between the St. Louis Park Economic Development
Authority, a public body corporate and politic under the laws of the State of Minnesota (the
“Authority”), the City of St. Louis Park, a Minnesota municipal corporation (the “City”), and PLACE,
a Minnesota nonprofit corporation (the “Developer”);
WITNESSETH:
WHEREAS, the Authority and the City desire to promote development of certain property
within Redevelopment Project No. 1 (the “Project”) in the City, located at 5725, 5925 and 5815
Highway 7 (the “City and Authority Property”) and 3520 Yosemite Avenue (the “Rail Property”
and together with the City and Authority Property, the “Property”); and
WHEREAS, the Property is made up of four parcels, of which the City and Authority Property
is owned by the City or the Authority, and the Rail Property is owned by the Hennepin County
Regional Rail Authority; and
WHEREAS, the City and Authority previously determined that it is in the best interests of the
City that the Developer be designated as the sole developer of the City and Authority Property during
the term of an initial Preliminary Development Agreement between the parties, dated as of May 18,
2015 (the “Initial Agreement”); and
WHEREAS, the parties have worked diligently to perform their obligations under the Initial
Agreement and now wish to extend the term of the Initial Agreement pursuant to this First
Amendment.
NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein, the Authority, the City and the Developer hereby agree as follows:
1. During the term of this First Amendment, the parties agree to continue working cooperatively
toward the goals outlined in the Initial Agreement, pursuant to its terms.
2. This First Amendment shall terminate by its terms if the governing bodies of the Authority
and City have not approved the Contract (as defined in the Initial Agreement) by February 28, 2017.
Upon such termination, the Developer remains obligated to pay any costs payable under paragraph
13 of the Initial Agreement that were incurred by the Authority and the City prior to such date.
18. Except as amended by this First Amendment, the Initial Agreement shall remain in full force
and effect. Upon execution, the Developer shall reimburse the Authority for all out-of pocket-costs
incurred by the Authority in connection with negotiating, drafting and approval of this First
Amendment.
(The remainder of this page is intentionally left blank.)
City CouncilMeeting of February 16, 2016 (Item No. 4f) Page 5
Title: First Amendment to the Preliminary Development Agreement with PLACE
IN WITNESS WHEREOF, the City and Authority have caused this Agreement to be duly
executed in their name and behalf and their seal to be duly affixed hereto and the Developer has
caused this Agreement to be duly executed as of the date and year first above written.
PLACE ST. LOUIS PARK ECONOMIC
DEVELOPMENT AUTHORITY
By:
Its ______________________________ Its President
Its Executive Director
CITY OF ST. LOUIS PARK
Its Mayor
Its City Manager
473908v1 MNI SA285-104
Meeting: City Council
Meeting Date: February 16, 2016
EXECUTIVE SUMMARY
TITLE: Japs-Olson Company - Second Reading of Ordinance to Amend the Zoning Map
RECOMMENDED ACTION: Motion to Adopt Ordinance amending the zoning map, and
approve the summary ordinance for publication.
POLICY CONSIDERATION: Does the City Council support amending the zoning map to be
consistent with the recent municipal boundary change, and to designate land added to the city as
“General Industrial”?
SUMMARY: The zoning map amendment is required as a result of the municipal boundary
adjustment recently completed with the City of Hopkins. The zoning map must be amended to
remove the properties that are now located in the City of Hopkins, and add the properties now
located in St. Louis Park. Those added to St. Louis Park are recommended to be zoned “General
Industrial”, as they are adjacent to properties zoned “General Industrial”. The applicant also
intends to use the property in an industrial manner consistent with that zoning district.
The first reading was approved by the Council on February 1, 2016. If approved, the ordinance
will take effect on March 11, 2016.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Ordinance
Ordinance Summary for Publication
Prepared by: Gary Morrison, Assistant Zoning Administrator
Reviewed by: Sean Walther, Planning & Zoning Supervisor
Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, City Manager
Consent Agenda Item: 4g
City Council Meeting of February 16, 2016 (Item No. 4g) Page 2
Title: Japs-Olson Company - Second Reading of Ordinance to Amend the Zoning Map
ORDINANCE NO. ____-16
AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE
AMENDING THE ZONING MAP
7500 EXCELSIOR BOULEVARD
7630 EXCELSIOR BOULEVARD
8000 POWELL ROAD
8050 POWELL ROAD
4103 TEXAS AVENUE SOUTH
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
Section 1. The City Council has considered the advice and recommendation of the
Planning Commission (Case No. 15-47-Z).
Section 2. The St. Louis Park Zoning Ordinance adopted December 28, 1959,
Ordinance No. 730; amended December 31, 1992, Ordinance No. 1902-93, amended December
17, 2001, Ordinance No. 2216-01, as heretofore amended, is hereby further amended by:
1. Removing the land described in Exhibit “A” from the zoning map.
And,
2. Adding the land described in Exhibit “B” to the zoning map, and classifying them as
the General Industrial (IG) zoning district:
Section 3. The contents of Planning Case File No. 15-47-Z are hereby entered into and
made part of the public hearing record and the record of decision for this case.
Section 4. The ordinance shall take effect not less than 15 days following publication
and the effective date of the Comprehensive Plan amendment.
Public Hearing January 6, 2016
First Reading February 1, 2016
Second Reading February 16, 2016
Date of Publication February 25, 2016
Effective Date March 11, 2016
Reviewed for Administration Adopted by the City Council February 16, 2016
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest: Approved as to Form and Execution:
Melissa Kennedy, City Clerk Soren Mattick, City Attorney
City Council Meeting of February 16, 2016 (Item No. 4g) Page 3
Title: Japs-Olson Company - Second Reading of Ordinance to Amend the Zoning Map
EXHIBIT “A”
Parcel 1:
That part of the Southwest Quarter (SW 1/4) of the Northwest Quarter (NW1/4) of Section Twenty
(20), Township One Hundred Seventeen (117), Range Twenty-one (21), described as follows:
Beginning at a point on the West line of said SW 1/4 of the NW 1/4 where said line intersects the
southerly right-of-way line a distance of one hundred and fifty five and two tenths (155.2} feet,
thence southwesterly on an eleven (11) degree curve to the left a distance of two hundred and
twenty-six: (226) feet more or less to a point in the west line of said SW 1/4 of the NW 1/4, thence
north one hundred and eight and eight tenths feet (108.8) to the place of beginning, Hennepin
County, Minnesota.
Parcel 2:
Lot 3, Block 1, Morse Industrial Subdivision.
Parcel 3:
That part of the Southwest Quarter of the Northwest Quarter of Section 20, Township 117, Range
21 described as beginning at the Southwest corner of said Southwest Quarter of the Northwest
Quarter; thence East along the South line of said Southwest Quarter of the Northwest Quarter, a
distance of 67.4 feet: thence North parallel with the West line of said Southwest Quarter of the
Northwest Quarter, a distance of 279.5 feet; thence Northerly along a tangential curve to the right,
having a radius of 1206.94 feet, a distance of 136.57 feet; thence Northeasterly along a compound
curve, having a radius of 491.67 feet, a distance of 375.86 feet; thence Northeasterly along a
compound curve having a radius of 547.71 feet, a distance of 147.66 feet; thence North 25 degrees,
23 minutes West (assuming the West line of Southwest Quarter of the Northwest Quarter as
bearing North and South) a distance of 8 feet more or less to the Southeasterly right-of-way line
of the Chicago, Milwaukee, St. Paul and Pacific Railroad Company; thence South 64 degrees, 37
minutes West along said Southeasterly right-of-way line a distance of 255.35 feet more or less to
a point 155.2 feet Northeasterly along said Southeasterly right-of-way line from the West line of
said Southwest Quarter of the Northwest Quarter; thence Southwesterly along a curve concave to
the Southeast having a radius of 521.67 feet to a point on the West line of said Southwest Quarter
of the Northwest Quarter, distant 108.8 feet South along said West line from said Southeasterly
right-of-way line; thence South along said West line to the point of beginning.
Parcel 4:
That a part of the Southwest Quarter of the Northwest Quarter of Section 20, Township 117, Range
21 described as beginning at a point on the South line of said Southwest Quarter of the Northwest
Quarter, distant 67.4 feet East from the Southwest corner of said Southwest Quarter of the
Northwest Quarter; thence North parallel with the West line of said Southwest Quarter of the
Northwest Quarter, a distance of 262.5 feet; thence East parallel with said South line to the center
line of Powell Road; thence South along said center line to said South line; thence West along said
South line to the point of beginning.
City Council Meeting of February 16, 2016 (Item No. 4g) Page 4
Title: Japs-Olson Company - Second Reading of Ordinance to Amend the Zoning Map
EXHIBIT “B”
Parcel 1:
That part of the Northwest Quarter of the Southwest Quarter, Section 20, Township 117, Range
21 described as beginning at a point on the North line of said Northwest Quarter of the Southwest
Quarter distant 700 feet West from the Northeast corner of said Northwest Quarter of the
Southwest Quarter; thence West along said North line 185.3 feet; thence South deflecting to the
left 90 degrees 00 minutes 29 seconds to the center line of Excelsior Boulevard; thence easterly
along said center line to its intersection with a line drawn South, parallel with the West line of said
Northwest Quarter of the Southwest Quarter from the point of beginning; thence North along said
parallel line to the point of beginning; except that part thereof lying Northerly of a line drawn
Westerly, parallel with the center line of Excelsior Boulevard from a point on the East line of said
above described tract distant 461 feet North along said East line from the center line of Excelsior
Boulevard.
Parcel 2:
That part of the Southwest Quarter of the Northwest Quarter lying South and East of the center
line of Powell Road; That part of the Northwest Quarter of the Southwest Quarter described as
follows:
Commencing at a point on the North line of the Northwest Quarter of the Southwest Quarter, 700
feet West of the Northeast corner thereof; thence South along a line parallel with the West line
thereof to a point 461 feet North of the center line of Excelsior Boulevard as measured along said
parallel line, which is the actual point of beginning of the tract to be described; thence North along
said parallel line to the North line of the Northwest Quarter of the Southwest Quarter; thence West
along said North line 185.3 feet; thence South along a line deflecting to the left 90.008 degrees to
a point of intersection with a line running parallel with the center line of Excelsior Boulevard from
the point of beginning; thence Easterly to the point of beginning; the Southerly boundary of said
tract is marked by Judicial Landmark set pursuant to Torrens Case No. 12986, all in Section 20,
Township 117, Range 21, Hennepin County, Minnesota.
City Council Meeting of February 16, 2016 (Item No. 4g) Page 5
Title: Japs-Olson Company - Second Reading of Ordinance to Amend the Zoning Map
SUMMARY
ORDINANCE NO.____-16
AN ORDINANCE CHANGING BOUNDARIES OF ZONING DISTRICTS
7500 EXCELSIOR BOULEVARD
7630 EXCELSIOR BOULEVARD
8000 POWELL ROAD
8050 POWELL ROAD
4103 TEXAS AVENUE SOUTH
This ordinance states that the zoning map will be amended to reflect the changes resulting from
the recent border adjustment between the City of St. Louis Park and the City of Hopkins. The land
attached to St. Louis Park will be added to the map and zoned General Industrial (IG), the land
detached from St. Louis Park will be removed from the map.
Adopted by the City Council February 16, 2016
Jake Spano /s/
Mayor
A copy of the full text of this ordinance is available for inspection with the City Clerk.
Published in St. Louis Park Sailor: February 25, 2016
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4h
EXECUTIVE SUMMARY
TITLE: Lease Amendment No. 1 to City Agreement No. 126-14 with AT&T
RECOMMENDED ACTION: Motion to approve Amendment No. 1 to City Agreement No.
126-14, between the city and New Cingular Wireless PCS, LLC (AT&T) for communication
antennas on the city’s water tower at 2541 Nevada Avenue South.
SUMMARY: Original Agreement - In 2014, the city negotiated an antenna lease agreement with
AT&T for placement of up to nine communication antennas, located 131’ above ground, on our
water tower on Park Glen Road. The agreement was a five-year term with the option of two
renewable five-year terms.
Proposed Amendment No. 1 – This amendment allows AT&T to upgrade three antennas and add
six additional auxiliary boxes to the tower, at an elevation 131’ above ground.
The Amendment has been reviewed and found acceptable by the City Attorney.
FINANCIAL OR BUDGET CONSIDERATION: The existing annual lease rate for 2016 is
$44,324.80. The revised 2016 annual lease rent rate will increase to $63,778.30. The rent structure
is based on the number and type of antennas/auxiliary boxes and their height above ground on the
tower. The financial terms of this agreement require annual lease payments with a 5% annual rate
increase.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Amendment No. 1 to Agreement
Prepared by: Scott Merkley, Public Works Services Manager
Reviewed by: Mark Hanson, Public Works Superintendent
Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
City Council Meeting of February 16, 2016 (Item No. 4h) Page 2
Title: Lease Amendment No. 1 to City Agreement No. 126-14 with AT&T
CITY OF ST. LOUIS PARK
AMENDMENT NO. 1
TO WATER TOWER ANTENNA AGREEMENT CONTRACT NO. 126-14
This AMENDMENT NO. 1 TO WATER TOWER ANTENNA AGREEMENT
(“Amendment) is made this ______ day of _______________________, 2016, by and between
the CITY OF ST. LOUIS PARK, MINNESOTA (“City”) and NEW CINGULAR WIRELESS
PCS, LLC (hereinafter “TENANT”), with reference to the facts set forth in the Recitals below:
RECITALS
A. City and TENANT, are parties to a Water Tower Antenna Agreement dated
November 3, 2014 (“Agreement”) whereby City has leased a portion the Property and Water
Tower to TENANT, along with access and utility rights.
B. City and TENANT desire to amend the Agreement to (i) provide for revised
antenna space with new equipment on the Water Tower; and (ii) provide for other additional or
modified Agreement language.
C. The existing Agreement allows for nine antennas and nine auxiliary boxes at an
elevation of 131 feet above ground (“Existing Equipment”) and City and TENANT desire to
amend the Agreement to allow three (3) additional antennas and six (6) additional auxiliary
antenna boxes at an elevation of 131 feet above ground (“New Equipment”) (the Existing
Equipment and New Equipment shall be collectively referred to herein as the “Equipment”) to
expand communication capabilities.
AGREEMENT
NOW, THEREFORE, in consideration of the facts contained in the Recitals above, the
mutual covenants and conditions below, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. The parties agree that Paragraph 3B of the Agreement is deleted in its entirety and
replaced with the following:
Commencing January 1, 2016, TENANT’S annual Rent shall be Forty-Four
Thousand Three Hundred Twenty-Four and 80/100 Dollars ($44,324.80). The Rent
increase for the New Equipment shall be Nineteen Thousand Four Hundred Fifty-
Three and 50/100 Dollars ($19,453.50) per year, and shall be prorated for 2016 for
the nine (9) month period commencing April 1, 2016 and ending December 31,
2016. The 2016 prorated Rent for the New Equipment is Fourteen Thousand Five
Hundred Ninety and 13/100 Dollars ($14,590.13), which shall be paid by TENANT
to City within thirty (30) days after the full execution and delivery of this
Amendment. Rent shall be paid before January 1 of each year. Commencing on
January 1, 2017, and each January 1st thereafter for the Term of the Agreement, the
annual Rent shall increase by five percent (5%) as shown on Exhibit “C-1” attached
hereto.
City Council Meeting of February 16, 2016 (Item No. 4h) Page 3
Title: Lease Amendment No. 1 to City Agreement No. 126-14 with AT&T
2. Exhibit “B” to the Agreement is replaced in its entirety by Exhibit B-1 consisting
of the final plan set Rev. 2 signed and dated 11/12/2015 and stamped approved, signed, and dated
11/18/2015 by the City.
3. Exhibit “C” to the Agreement is replaced in its entirety by Exhibit “C-1” consisting
of an annual rent schedule.
4. The color of the antennas and any equipment placed on the Water Tower shall at
all times be painted and maintained, at TENANT’s expense, to match the color of the Water Tower
or a color selected by the City.
5. TENANT shall remove and dispose of all non-operating equipment on the Water
Tower at the time of the New Equipment upgrade.
6. TENANT is responsible for paying the cost of the consultant, hired by the City, for
plan review and inspection services to ensure that the work authorized by this Amendment is done
to City standards and in accordance with the requirements of the Agreement and this Amendment.
7. Except as specifically modified by this Amendment, the parties agree that all of the
terms and conditions of the Agreement are in full force and effect and remain unmodified, and the
parties hereby ratify and reaffirm the terms and conditions of the Agreement and agree to perform
and comply with the same. In the event of a conflict between any term or provision of the
Agreement and this Amendment, the terms and provisions of this Amendment shall control. In
addition, except as otherwise stated in this Amendment, all initially capitalized terms will have the
same respective defined meaning stated in the Agreement.
IN WITNESS WHEREOF, City and TENANT have caused this Amendment to be
executed by each party’s duly authorized representative on the date written below.
CITY: TENANT:
City of St. Louis Park, Minnesota New Cingular Wireless PCS, LLC
a Minnesota municipal corporation a Delaware limited liability company
By: By: AT&T Mobility Corporation
Jake Spano
Its: Mayor
By: By: ___________________________________
Thomas K. Harmening
Its: City Manager Printed Name:___________________________
Its: Manager
Date: Date:
City Council Meeting of February 16, 2016 (Item No. 4h) Page 4
Title: Lease Amendment No. 1 to City Agreement No. 126-14 with AT&T
TENANT ACKNOWLEDGEMENT
STATE OF _____________________
COUNTY OF ___________________
On the ____ day of _______ in the year __________ before me, the undersigned, personally
appeared Jake Spano, as Mayor, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that by his/her signature on the
instrument, the individual, or the person upon behalf of which the individual acted, executed the
instrument.
_________________________________________
Notary Public
Printed Name: _____________________________
Commission Expires: _______________________
CITY ACKNOWLEDGEMENT
STATE OF _____________________
COUNTY OF ___________________
On the ____ day of _______ in the year __________ before me, the undersigned, personally
appeared Thomas K. Harmening, as City Manager, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his capacity, and that
by his signature on the instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.
_________________________________________
Notary Public
Printed Name: _____________________________
My Commission Expires: ____________________
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4i
EXECUTIVE SUMMARY
TITLE: Confirm Appointment of City Treasurer
RECOMMENDED ACTION: Motion to Adopt Resolution confirming the appointment of
Steven Heintz as interim City Treasurer effective February 18, 2016.
POLICY CONSIDERATION: Does Council confirm the appointment of Steven Heintz as the
interim City Treasurer?
SUMMARY: With the resignation of Controller Brian Swanson, City Manager Thomas K.
Harmening has appointed Steven Heintz, Finance Supervisor, as the interim Controller. The
Controller vacancy is currently in the recruitment process.
One of the interim Controller responsibilities will be to serve as the City Treasurer during the
recruitment and selection process. The City Treasurer appointment is required by Section 5.04 of
the City Charter.
The attached resolution will confirm the appointment of interim City Treasurer while the
recruitment process is underway.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
City Council Meeting of February 16, 2016 (Item No. 4i) Page 2
Title: Confirm Appointment of City Treasurer
RESOLUTION NO. 16-____
RESOLUTION CONFIRMING THE APPOINTMENT OF
STEVEN HEINTZ AS INTERIM CITY TREASURER,
EFFECTIVE FEBRUARY 18, 2016
WHEREAS, the St. Louis Park City Charter Section 5.04 grants authority to the City
Manager to control and direct the administration of the City’s affairs and to appoint with the
consent of Council the position of City Treasurer; and
WHEREAS, with the resignation of Brian Swanson, Controller and City Treasurer on
February 17, 2016, the City Manager will appoint an interim City Treasurer during the recruitment
and selection process;
WHEREAS, the City Manager has determined that Steven Heintz, Finance Supervisor, will
handle the duties of Controller and also serve as the interim City Treasurer during this timeframe;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park
that the decision of the City Manager to appoint Steven Heintz as interim City Treasurer effective
February 18, 2016 is hereby confirmed.
Reviewed for Administration: Adopted by the City Council February 16, 2016
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest:
Melissa Kennedy, City Clerk
Meeting: City Council
Meeting Date: February 16, 2016
EXECUTIVE SUMMARY
TITLE: St. Louis Park Lions Club - Temporary Signs in the Public Right-of-Way
RECOMMENDED ACTION: Motion to Adopt Resolution approving St. Louis Park Lions
Club’s request for placing temporary signs in the public right-of-way.
POLICY CONSIDERATION: None.
SUMMARY: The St. Louis Park Lions Club has requested to install temporary signs in the public
right-of-way for their 59th Annual Pancake and Sausage Breakfast event. The Council has been
granting a similar request for the Lion’s Pancake Breakfast every year since 2005.
Section 36-362(e)(2) of the Zoning Code states that prohibited signs include, “Signs on or
over the public right-of-way unless the City Council grants permission for a temporary sign
on or over the public right-of-way for a period not to exceed ten days.”
The Lions Club is a non-profit community based organization that provides services and resources
to the people of St. Louis Park. The requested signs advertise the Lions Club’s 59th Annual
Pancake and Sausage Breakfast to be held on Sunday, March 20, 2016. This activity is a fund
raiser for services and resources provided to the residents of St. Louis Park. The request is to
install 20 sandwich board style signs as early as March 12, 2016; these will be removed on the day
of the event. Up to 28 smaller signs will be installed at local places of worship on the day of the
event.
FINANCIAL OR BUDGET CONSIDERATION: None
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Resolution
Letter from Lions Club dated February 9, 2016
Sign Plan
Prepared by: Gary Morrison, Assistant Zoning Administrator
Reviewed by: Sean Walther, Planning & Zoning Supervisor
Michele Schnitker Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, City Manager
Consent Agenda Item: 4j
City Council Meeting of February 16, 2016 (Item No. 4j) Page 2
Title: St. Louis Park Lions Club - Temporary Signs in the Public Right-of-Way
RESOLUTION NO. 16-____
RESOLUTION APPROVING THE ST. LOUIS PARK LIONS CLUB'S
APPLICATION FOR THE PLACEMENT OF TEMPORARY SIGNS
WITHIN THE PUBLIC RIGHT-OF-WAY
WHEREAS, The St. Louis Park Lions Club made application for the placement of 20
temporary sandwich board type signs for eight days beginning March 12, 2016, and up to 28 “stick
in the ground” type signs within the public right-of-way on March 20, 2016 only; and
WHEREAS, pursuant to Section 36-362(e)(2) of the St. Louis Park Zoning Ordinance, the
City Council may approve the placement of temporary signs within the public right-of-way for a
period not to exceed 10 days;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota, that the City Council approves the St. Louis Park Lions Club's application for
the placement of 20 sandwich board type temporary signs within the public right-of-way beginning
March 12, 2016, and to be removed immediately following the conclusion of the event on March
20, 2016 and up to 28 smaller signs to be displayed on March 20, 2016 only. All signs are to be
removed by the end of the day on March 20, 2016.
BE IT FURTHER RESOLVED that the size and placement of the 20 sandwich board
and 28 push in the ground type temporary signs are approved as shown on the attached sign plan
(Exhibit A).
Reviewed for Administration: Adopted by the City Council February 16, 2016
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest:
Melissa Kennedy, City Clerk
City Council Meeting of February 16, 2016 (Item No. 4j) Page 3
Title: St. Louis Park Lions Club - Temporary Signs in the Public Right-of-Way
Sign Plan
City Council Meeting of February 16, 2016 (Item No. 4j) Title: St. Louis Park Lions Club - Temporary Signs in the Public Right-of-Way Page 4
City Council Meeting of February 16, 2016 (Item No. 4j) Page 5
Title: St. Louis Park Lions Club - Temporary Signs in the Public Right-of-Way
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4k
FIRE CIVIL SERVICE COMMISSION MINUTES
December 16, 2015 – 7:00 a.m.
COMMUNITY ROOM – CITY HALL
1. The meeting was called to order at 7:00 a.m. by President Williams.
2. In attendance were Commissioners Stuart Williams and Bill MacMillan. Also present were
Nancy Deno, HR Director/Deputy City Manager; Steve Koering, Fire Chief; John Wolff,
Deputy Chief; Cary Smith, Assistant Chief; Union President Eric Bakken.
3. Minutes of the November 2, 2015 Fire Civil Service meeting were approved as presented.
4. Deputy Chief Wolff provided an overview of the Chief of Training and EMS process. Chief
Koering requested the Commission certify the list. Motion was made by Commissioner
MacMillan and seconded by Commissioner Williams to certify the eligibility roster for Chief
of Training and EMS. Motion carried unanimously.
5. Chief Koering discussed Legislative process regarding Commission recommendations on
updating MN Statute 420. The next step is a summary of the Commission recommendation
is submitted to the City Manager by Chief Koering for the Council February 8, 2016 Council
meeting. Council reviews all the recommendations and will make the determination on next
steps.
6. The Commission adjourned at 7:13 a.m.
Respectfully submitted,
Nancy Deno, Deputy City Manager
City Staff Liaison
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4l
OFFICIAL MINUTES
PLANNING COMMISSION
ST. LOUIS PARK, MINNESOTA
JANUARY 6, 2016 – 6:00 p.m.
COUNCIL CHAMBERS
MEMBERS PRESENT: Lynne Carper, Lisa Peilen, Richard Person, Carl Robertson,
Ethan Rickert (youth member)
MEMBERS ABSENT: Claudia Johnston-Madison, Joe Tatalovich
STAFF PRESENT: Gary Morrison, Sean Walther, Nancy Sells
1. Call to Order – Roll Call
2. Approval of Minutes of October 21, 2015
Commissioner Robertson moved approval of the minutes. Commission Peilen seconded
the motion, and the motion passed on a vote of 4-0.
3. Public Hearings
A. Japs Olson West Expansion
Comprehensive Plan Amendment, Rezoning, Plat, Special Permit Amendment
and Conditional Use Permit
Location: 7500 and 7630 Excelsior Boulevard
Applicant: Japs Olson Company
Case Nos.: 15-46-CP, 15-47-Z, 15-48-CUP, 15-49-S
Gary Morrison, Assistant Zoning Administrator, presented the staff report.
Mr. Morrison stated that the applicant proposes an expansion in two phases. The parking
lot project which required a Conditional Use Permit was completed in the fall of 2015.
The current application is for construction of a 192,000 sq. ft. addition. Mr. Morrison
reviewed the relocation of municipal boundary between the City of St. Louis Park and the
City of Hopkins which was required for the expansion and which has been approved by
both cities and the State of Minnesota.
Mr. Morrison explained that before the expansion can be constructed, the property now in
St. Louis Park has to be guided “Industrial” in the Comprehensive Plan land use map,
zoned “General Industrial” in the Zoning Map, and combined into one platted lot. The
existing Special Permit also has to be amended to reflect the expansion, and a CUP has to
be approved to allow for the removal of 35,000 cubic yards of material.
Mr. Morrison discussed the comments received from Hennepin County’s review of the
preliminary and final plat.
Mr. Morrison reviewed parking, setbacks, landscaping, stormwater and architectural
plans for the proposed expansion. He noted that the applicant is requesting an appeal
City Council Meeting of February 16, 2016 (Item No. 4l) Page 2
Title: Planning Commission Meeting Minutes of January 6, 2016
from the provision of visual deviation along long walls. Mr. Morrison explained that in
this case, that cut into the building space would interfere with the layout and operation of
the large machinery used by the company and pilasters outside the building would not
match the existing building. The applicant proposes using tinted spandrel glass panels to
provide visual breaks. The glass panels will also tie the architecture of the proposed
building to the existing building.
Mr. Morrison discussed the conditional use permit for excavation. He showed the
proposed haul route.
Commissioner Robertson commented that the presentation was comprehensive and the
requests were straightforward.
Chair Person opened the public hearing. As no one was present wishing to speak he
closed the public hearing.
Commissioner Peilen made a motion to recommend approval of the requests for
Comprehensive Plan Land Use Map amendment, Zoning Map amendment, Preliminary
and Final Plat, major amendment to a Special Permit, and Conditional Use Permit. She
stated she was delighted that Japs Olson chose to expand in St. Louis Park and that the
company is an asset to the community.
Commissioner Robertson seconded the motion, and the motion passed on a vote of 4-0.
4. Other Business
A. Election of Chair and Vice Chair
Commissioner Robertson made a motion to nominate Claudia Johnston-Madison
as Chair and Lisa Peilen as Vice Chair. Commissioner Carper seconded the
motion, and the motion passed on a vote of 4-0.
B. Resolution of Recognition for Robert Kramer
Chair Person read Resolution No. 88 recognizing Commissioner Kramer’s eleven
years of service on the Planning Commission. Commissioner Carper made a
motion approving the resolution and added his thanks to Robert Kramer.
Commissioner Robertson seconded the motion and added that Robert will be
missed and that he added a lot to the Commission discussions. The motion passed
on a vote of 4-0.
5. Communications
6. Adjournment
The meeting adjourned at 6:35 p.m.
Respectfully submitted,
Nancy Sells
Sr. Office Assistant
Meeting: City Council
Meeting Date: February 16, 2016
Consent Agenda Item: 4m
EXECUTIVE SUMMARY
TITLE: PLACE Grant Application to the Hennepin County Transit Oriented Development
(TOD) Program
RECOMMENDED ACTION: Motion to Adopt Resolution in support of a grant application to
the Hennepin County Transit Oriented Development (TOD) Program for development activities
for PLACE.
POLICY CONSIDERATION: Does the City Council support PLACE’s application for a
$1,000,000 Transit Oriented Development (TOD) grant to fund development activities for its
proposed project at the SE quadrant of Hwy 7 & Wooddale Ave and near the proposed SWLRT
Wooddale Station at the site?
SUMMARY: Hennepin County has made funding available for development projects in
identified TOD areas. This funding can be used for a variety of activities including site acquisition,
public infrastructure, streets, utilities or site improvements.
The PLACE project concept was first introduced to the Council November 25, 2013, and most
recently in May, 2015 where it received favorable support. At that time, PLACE introduced the
concept of a mixed-use, mixed-income development that incorporated a number of renewable
energy sources. PLACE is currently completing pre-development activities under a grant from the
Met Council. In December 2015, the Met Council awarded the PLACE development a $2 million
LCDA-TOD grant for acquisition, stormwater and energy efficiency. To gather community input
PLACE has held four community meetings and attended the Elmwood neighborhood annual
meeting. They have also met with numerous local agencies including Friends of the Arts,
Historical Society, and SEEDS.
The principal activities of this TOD Development grant include: stormwater improvements, site
acquisition, and fuel cells/E-Generation for anaerobic digestion.
Grant applications are due February 11, 2016 and require a resolution of support from the
governing body of the city where the project is to be located. Resolutions of support may be
submitted within 30 days of the application due date.
FINANCIAL OR BUDGET CONSIDERATION: The grant request is for $1,000,000. There
is no match requirement for TOD grants.
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: Resolution
Reviewed by: Julie Grove, Economic Development Specialist
Greg Hunt, Economic Development Coordinator
Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, EDA Executive Director and City Manager
City Council Meeting of February 16, 2016(Item No. 4m) Page 2
Title: PLACE Grant Application to the Hennepin County Transit Oriented Development (TOD) Program
RESOLUTION NO. 16-____
RESOLUTION OF SUPPORT OF AN APPLICATION FOR
A HENNEPIN COUNTY TRANSIT ORIENTED DEVELOPMENT (TOD) GRANT
SUBMITTED BY PLACE
WHEREAS, the St. Louis Park City Council acknowledges the Hennepin County Board of
Commissioners has authorized approximately $2.2 million in the 2016 budget for transit oriented
development (TOD) projects; and
WHEREAS, PLACE wishes to submit an application requesting grant funds from the
Hennepin County Transit Oriented Development Program; and
WHEREAS, the grant funds will be used for certain Public Improvement Costs associated
with the proposed PLACE redevelopment project at the southeast corner of Hwy 7 and Wooddale
Ave in the City of St. Louis Park; and
WHEREAS, the Hennepin County Transit Oriented Development Program Guidelines
require support by the governing body of the City Council for submission of a grant application to
the Hennepin County Transit Oriented Development Program; and
NOW, THEREFORE, BE IT RESOLVED that the City Council, in accordance with
Minnesota Statutes 383B.77, subd. 3., supports the submission of a Transit Oriented development
Program grant application to the Hennepin County Housing and Redevelopment Authority by
PLACE.
Reviewed for Administration: Adopted by the City Council February 16, 2016
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest
Melissa Kennedy, City Clerk
Meeting: City Council
Meeting Date: February 16, 2016
Boards and Commissions: 5a
EXECUTIVE SUMMARY
TITLE: Appointment of Torrey Kanne to the Planning Commission
RECOMMENDED ACTION: Motion to appoint Torrey Kanne to the Planning Commission for
a term to expire May 31, 2018.
POLICY CONSIDERATION: Not Applicable
SUMMARY: A total of 13 applications were received for one (1) vacancy on the Planning
Commission. The applications were forwarded to the City Council for review. The Council
interviewed four (4) candidates on February 8, 2016. After discussion, the Council decided to
proceed with the appointment of Ms. Kanne to serve as Commissioner on the Planning
Commission for a term expiring May 31, 2018.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: None
Prepared by: Kay Midura, Office Assistant – City Clerk’s Office
Reviewed by: Melissa Kennedy, City Clerk
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: February 16, 2016
Public Hearing Agenda Item: 6a
EXECUTIVE SUMMARY
TITLE: Public Hearing to Consider Allocation of 2016 Community Development Block
Grant (CDBG) Funds
RECOMMENDED ACTION: Mayor to close the public hearing. Motion to Adopt Resolution
approving proposed use of 2016 Urban Hennepin County Community Development Block Grant
(CDBG) Program Funds and authorize execution of Subrecipient Agreement with Hennepin
County and any Third Party Agreements.
POLICY CONSIDERATION: Does the City Council concur with the recommendations made
for the allocation of $179,231 in 2016 CDBG funds?
SUMMARY: Each year the city must decide how to use its annual allocation of CDBG Funds.
CDBG funds are US Housing and Urban Development (HUD) funds distributed through Hennepin
County. Hennepin County determined the allocation by applying 2008-2012 American
Community Survey (ACS) data in the determination of poverty and overcrowding per city. The
city must submit its proposed use of the allocation to Hennepin County by February 26th. Prior
to submittal, the city must hold a public hearing.
This year’s proposed use of CDBG funds reflects the city’s priorities to preserve existing housing
and increase affordable ownership opportunities. Ninety-six percent of the allocation, or $171,731
of the $179,231 focuses on assisting low-income residents with emergency repairs, rehab loans,
improvement projects and affordable ownership opportunities. The remaining amount is proposed
for youth park programming at Meadowbrook Manor Park.
FINANCIAL OR BUDGET CONSIDERATION: CDBG funds allow cities discretion (within
the HUD guidelines) to fund projects that meet the national low income objectives and the needs
of cities. CDBG funding is expected to remain close to the fiscal year 2015 funding level;
however, the federal budget has yet to be finalized. 2015 funding levels will be used for planning
purposes until the 2016 allocation is finalized. St. Louis Park will receive an estimated $179,231
in 2016. The 2016 CDBG year runs from July 1, 2016 through June 30, 2017. Staff anticipates
the proposed projects can expend the funds in a timely manner as has been our historical practice
of fully expending CDBG funds. Final funding amount may vary slightly from the estimate. Staff
will keep Council apprised of actual funding amounts.
VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and
diverse housing stock.
SUPPORTING DOCUMENTS: Discussion
Proposed Program Descriptions
Draft Resolution
Prepared by: Marney Olson, Assistant Housing Supervisor
Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD director
Approved by: Tom Harmening, City Manager
Study Session Meeting of February 16, 2016 (Item No. 6a) Page 2
Title: Public Hearing to Consider Allocation of 2016 Community Development Block Grant (CDBG) Funds
DISCUSSION
BACKGROUND: The national objectives of the CDBG program are to benefit low and
moderate-income persons, prevention or elimination of slum or blight and/or to meet a particular
urgent community development need. From a policy perspective, the City Council has typically
focused CDBG funds on “sticks and bricks” improvements to the housing stock for low-income
families, for both single-family (SF) owners and multifamily housing residents. A small portion
of funds have also been allocated to support public services for St. Louis Park Housing Authority
(SLPHA) residents and park programming for low-income youth.
PRESENT CONSIDERATIONS: The proposed use of CDBG funds reflects the city’s priorities
to preserve existing housing and increase affordable ownership opportunities. This year’s proposed
allocation is summarized in Table 1 below. Ninety-six percent of the allocation focuses on assisting
low-income residents with emergency repairs, rehab loans, home renovations and affordable
ownership opportunities. The remaining amount is proposed for youth park programming at
Meadowbrook Manor Park.
Historically, the city has allocated CDBG funds to non-profit affordable housing providers to assist
with their building renovations. At the recommendation of the Police Dept., Perspectives is
requesting funds for security cameras and lighting upgrades and the Housing Authority will replace
windows at scattered site properties. CDBG funds are just one funding source for Perspectives,
Homes Within Reach, and the Housing Authority. CDBG funds are leveraged with other resources
to fund the projects.
CDBG funds are the only source of funding for the Low Income Single Family Emergency Repair
Program and Home Rehab Loan that serve St. Louis Park residents. The amount requested each
year is based on past experience, demand, and the ability to complete rehab and emergency grant
projects during the CDBG grant year. CDBG is also the primary source of funding for the Youth
Park Programming.
Table 1: Proposed 2016 CDBG Allocation
Project Activity
Proposed Ongoing
Activity Allocation
Low Income Single Family Emergency Repair Program $45,000 yes
Low Income Single Family Home Rehab Loan $70,000 yes
Affordable Housing Land Trust – Homes within Reach $20,000 yes
St. Louis Park Housing Authority – Windows for scattered sites $16,731 yes
Perspectives, Inc. – Security Cameras and Lighting $20,000 no
Public Service – Youth Park Programming at Meadowbrook Park $7,500 yes
Total $179,231
NEXT STEPS: February 26, 2016 is the deadline for submission of the CDBG Application to
Hennepin County
Study Session Meeting of February 16, 2016 (Item No. 6a) Page 3
Title: Public Hearing to Consider Allocation of 2016 Community Development Block Grant (CDBG) Funds
Proposed Program Descriptions
Emergency Repair Program – Single Family $45,000
This program is consistent with the Council’s focus on stick and bricks and has proven its
responsiveness to low income seniors and vulnerable residents with annual incomes of 50% or less
of the median area income, or $30,350 for a single person household, and assets less than $25,000.
It provides grants of up to $4,000 for emergencies such as leaking roofs, plumbing repairs, water
heaters or code violations. Community Action Partners for Suburban Hennepin County (CAPSH)
currently administers this program for the City. This is an ongoing CDBG activity.
Low Income Single Family Deferred Loan Program - $70,000
This is the primary ongoing CDBG zero interest deferred rehab loan program targeted for homeowners
with annual income of 50% or less of the median area income based on family size ($30,350 for a
household of one, $43,300 for a household of 4) and assets less than $25,000. Families up to 80% of
AMI would have a 3% simple interest rate. The rehab focuses on improvements to bring homes into
code compliance and provide long-term maintenance free housing. The maximum loan amount is
$30,000 and is forgiven after 15 years. Repayment is required if homeowners sell the property before
the 15-year period expires.
This program is administered by Hennepin County Housing staff. There is currently a waiting list for
the low income single family deferred loan program so staff recommends an increase of $10,000 to this
program over 2015 funding levels. Continued funding, along with the program income realized from
repayment of previous CDBG deferred loans, should make it possible to serve three to five residents
depending on project scope.
Affordable Housing Land Trust – Homes Within Reach - $20,000
Homes within Reach is a program of West Hennepin Housing Land Trust that purchases homes
and sells them to low income homeowners. Buyers pay for the cost of the building only and lease
the land for 99 years. St. Louis Park funds are leveraged with Met Council and Hennepin County
HOME funds, and Homes within Reach administers this activity. Homes within Reach has
purchased thirteen homes in the city that have been sold to low income families.
St. Louis Park Housing Authority – Energy Efficient Window Replacement - $16,731
The SLP Housing Authority provides housing to low income residents that are typically below
50% median income. The HA owns and manages 37 scattered site homes throughout the city. The
HA has requested $16,731 to assist with replacing windows at scattered site homes. Each cabinet
replacement project is expected to cost between $7,000 and $12,000 depending on the size of the
home and number of windows. CDBG funds will be utilized to assist in window replacement at
two scattered site homes identified in the CFP.
CDBG funds were allocated for scattered site improvements from FY2015; however, after the
allocation was approved by council Hennepin County notified the city of a reduction of
approximately $20,000 and the funding for the Housing Authority was cut. If the final budget for
2016 results in a decrease we will reduce funding to the Housing Authority first.
Perspectives Louisiana Court Security Camera and Lighting - $20,000
Perspectives actively collaborates with the St Louis Park police department to promote safety in
Louisiana Court by the use of a surveillance system installed at their Supportive Housing Program
in 2012. At the suggestion of the Police Department, Perspectives proposes to expand the current
surveillance system to add 3 additional outdoor cameras to address viewing deficiencies identified
Study Session Meeting of February 16, 2016 (Item No. 6a) Page 4
Title: Public Hearing to Consider Allocation of 2016 Community Development Block Grant (CDBG) Funds
over the last 4 years of use. The new cameras include 2 cameras to view the parking lots behind
2768 & 2765 Louisiana Court and 1 long distance and omni directional camera mounted on the
exterior of 2753 Louisiana Court to provide a view of road approaching the court as well as a 360
degree view of the court itself. In order to enhance evening footage, lighting will be installed in
the parking lot for 2765 Louisiana Court (currently exterior building lights only) and the existing
lighting fixtures for the parking lot at 2768 Louisiana Court will be replaced (currently non-
operational).
Perspectives supportive housing program is located in five apartment buildings at Louisiana Court.
This project will be for two of the buildings (2759 & 2765 Louisiana Court) utilized for their
Permanent Housing program. Perspectives provides comprehensive supportive housing for
homeless women and children. Women and children are the fastest growing homeless population
in Hennepin County and in the nation. CDBG funds will assist in financing this project.
Public Service – SLP Park and Rec. Programming at Meadowbrook Manor Parks - $7,500
The Park and Recreation Department provides park programming to children at the Meadowbrook
Manor Apartment Community. The $7,500 would provide an enhanced level of programming and
ensure affordable registration fees. The youth park programming has been funded with CDBG
funds since 2007. Meadowbrook Manor Park is CDBG eligible based on the poverty levels in this
neighborhood. If the current management changes at Meadowbrook somehow have an impact on
this program, the use of these dollars may need to be revisited.
Study Session Meeting of February 16, 2016 (Item No. 6a) Page 5
Title: Public Hearing to Consider Allocation of 2016 Community Development Block Grant (CDBG) Funds
DRAFT RESOLUTION NO. 16 - ____
RESOLUTION APPROVING PROPOSED APPLICATION FOR 2016 URBAN
HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM FUNDS AND AUTHORIZING EXECUTION OF SUBRECIPIENT
AGREEMENT WITH URBAN HENNEPIN COUNTY AND ANY THIRD PARTY
AGREEMENTS
WHEREAS, the City of St. Louis Park, through execution of a Joint Cooperation
Agreement with Hennepin County, is cooperating in the Urban Hennepin County Community
Development Block Grant Program; and
WHEREAS, the City of St. Louis Park has developed a proposal for the use of 2016 Urban
Hennepin County Community Development Block Grant funds; and
WHEREAS, the City held a public hearing on February 16, 2016 to obtain the views of
citizens on housing and community development needs and priorities and the City's proposed use
of $179,231 from the 2016 Urban Hennepin County Community Development Block Grant.
BE IT RESOLVED, that the City Council of St. Louis Park approves the following projects
for funding from the 2016 Urban Hennepin County Community Development Block Grant
Program and authorizes submittal of the proposal to Urban Hennepin County/Consolidated Pool.
BE IT FURTHER RESOLVED that the City Council hereby authorizes and directs the
Mayor and its City Manager to execute the Subrecipient Agreement and any required Third Party
Agreement on behalf of the City to implement the 2016 Community Development Block Grant
Program.
BE IT FURTHER RESOLVED, that should the final amount of FY2016 CDBG available
to the city be different from the preliminary amount provided to the city, the City Council hereby
authorizes the city manager to adjust project budget(s) to reflect an increase or decrease in
funding.
Reviewed for Administration: Adopted by the City Council February 16, 2016
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest:
Melissa Kennedy, City Clerk
Project Activity Allocation
Low Income Single Family Emergency Repair Program $45,000
Low Income Single Family Home Rehab Loan $70,000
Affordable Housing Land Trust – Homes within Reach $20,000
St. Louis Park Housing Authority – Windows for scattered sites $16,731
Perspectives – Security Cameras and Lighting $20,000
Public Service – Youth Park Programming at Meadowbrook Park $7,500
Total $179,231
Meeting: Special Study Session
Meeting Date: February 16, 2016
Discussion Item: 2
EXECUTIVE SUMMARY
TITLE: Proposed St. Louis Park Revolving Loan Fund Program
RECOMMENDED ACTION: No action at this time. The purpose of this report is to present
the proposed revolving loan fund program and seek the Councils feedback.
POLICY CONSIDERATION: Does the Council wish to establish a revolving loan fund to
facilitate business expansion in St. Louis Park and partner with the Central Minnesota
Development Company (CMDC) in order to administer the initiative?
SUMMARY: Last January, staff presented an update on the City’s small business programs. At
the meeting, staff identified additional initiatives the EDA may wish to consider implementing.
Upon discussion, interest was expressed in a potential revolving loan fund and staff was directed
to explore it further.
Staff has subsequently been working with Central Minnesota Development Company (CMDC) (a
nonprofit SBA Certified Development Company) and the EDA’s legal counsel to formulate the
structure of the proposed revolving loan program, establish loan guidelines and determine the
necessary approvals required for the program’s implementation. Staff has also consulted with other
communities that have partnered with CMDC on similar programs and discussed the proposed
program with Citizens Independent Bank which saw benefits in offering such financing to local
businesses.
Under the proposed revolving loan program, the EDA would offer fixed rate gap financing to new
and expanding businesses in conjunction with loans offered through CMDC and local lenders.
Financing would be available for land, buildings, machinery and equipment. The benefit to
borrowers would be lower down payments which would free up funds for additional working
capital. To streamline the lending process, loan decisions would be based on criteria pre-
established jointly by the EDA and CMDC. Guidelines for the proposed revolving loan fund
program are attached. CMDC would administer the program, conduct the underwriting and credit
analysis, collect loan payments, provide quarterly payments and regular reports to the EDA, and
manage the revolving loan portfolio through a management contract. Michael Mulrooney,
President of CMDC will be present at the study session to answer questions.
FINANCIAL OR BUDGET CONSIDERATION: It is proposed that the EDA consider
establishing a revolving loan fund capitalized with $400,000 from the Development Fund and
partnering with CMDC to administer the initiative. There would be no direct charge to EDA as
application and processing costs would be incurred by borrowers and administrative fees would
be offset by interest income. CMDC would assess a monthly administrative fee of ½ of 2% of the
balance of all loans outstanding in the EDA’s loan portfolio.
SUPPORTING DOCUMENTS: Discussion
Proposed Revolving Loan Fund Guidelines
Proposed Management Agreement with CMDC
Prepared by: Julie Grove, Economic Development Specialist
Greg Hunt, Economic Development Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor/Deputy CD Director
Approved by: Tom Harmening, City Manager, EDA Executive Director
Special Study Session Meeting of February 16, 2016 (Item No. 2) Page 2
Title: Proposed St. Louis Park Revolving Loan Fund Program
DISCUSSION
BACKGROUND: As noted in the January 2015 Study Session, one of the most frequently asked
questions staff receives is whether or not the city has any financing programs available for
expanding small businesses. Within the metro area, there are a multitude of financial institutions
and organizations that offer financing to local businesses to which staff often makes referrals.
However, financing with these institutions alone can, at times, be difficult to secure. Occasionally
there are instances in which a company requires a little additional capital to fill a financing gap to
purchase some equipment or pursue an expansion or has exhausted nearly all of its existing capital
in the down payment and, as a result, lacks sufficient operating capital to effectively run the
growing business. In these circumstances it would be helpful if the EDA offered a program that
partnered with these lenders to provide additional gap financing.
The EDA previously offered a Commercial Rehabilitation Loan Fund; however it was time
consuming for staff and legal counsel and was therefore suspended in favor of participation in a
metro-wide revolving loan pool called the Twin Cities Community Capital Fund (TCCF).
Unfortunately, the TCCF dissolved in 2014. As noted above, there are valid reasons for the EDA
offering its own loan program to provide gap financing for commercial or industrial capital
improvements. However, there are risks associated with operating such a program independently
and it requires significant staff time to properly underwrite, package and service these loans.
To alleviate the above concerns, staff has been investigating other existing small business lending
programs with which the EDA could partner. One such program is offered in conjunction with the
Central Minnesota Development Company (CMDC).
Proposed Revolving Loan Fund
The proposed St. Louis Park Revolving Loan Fund (RLF) would provide “gap” financing for
property and equipment purchases and capital improvements enabling local businesses to grow
and expand their enterprises within St. Louis Park thereby creating employment opportunities and
increasing the city’s tax base resulting in enhanced economic vitality. The RLF is designed to
leverage other financing programs, as well as private financing, provided by the commercial
banking industry to induce investment in the community. Below is a general outline of the
proposed program.
Minimum Requirements
All projects must have a private financing match.
Eligible Projects
Financing would be available to “for-profit” businesses in St. Louis Park for land, buildings,
machinery and equipment. Financing for working capital would not be eligible through the
Fund.
Minimum & Maximum Loan Amounts
The minimum loan amount for eligible projects would be $50,000 and the maximum would be
$200,000 or 40% of the total project cost, whichever is less.
Special Study Session Meeting of February 16, 2016 (Item No. 2) Page 3
Title: Proposed St. Louis Park Revolving Loan Fund Program
Other Funds Required
In most cases at least 50% of total project costs must be privately financed through owner
equity and other lending sources. Most applications approved for funding have at least a 50%
private financing match.
Interest Rate
Interest rates will reflect the risk associated with the loan and project. Rates range from 2%
and prime plus 4%.
Terms
Loan terms would be tied to the useful life of the assets being financed. For example, loans
for machinery and equipment would have a maximum term of 10 years. Loans for land and
building acquisitions would have a maximum term of 20 years.
CMDC
CMDC is a nonprofit SBA Certified Development Company located in the north metro with over
35 years of experience as a small business lender in the Greater MSP market. It is one of only 25
Premier Certified Lenders in the nation and is one of Minnesota’s Top 10 SBA Lenders. CMDC
administers the state’s Urban Initiative Fund and is partnering with over 20 Minnesota
communities (including Bloomington, Brooklyn Center, Brooklyn Park, Burnsville, Columbia
Heights, Coon Rapids, Fridley, Minneapolis, New Brighton, Richfield, St. Paul, South St. Paul and
West St. Paul) to manage their revolving loan portfolios through a management contract similar to
the one being proposed. In speaking with several of these cities, CMDC has developed a positive
track record working with city staff on various development projects.
Partnering with CMDC would allow the EDA to streamline the loan application process for
applicants and allow for joint marketing of loan programs. CMDC has experienced lending staff
who can provide applicants with continuity and professional experience. It can provide free loan
pre-qualifications within 24 hours and in-house loan approvals. In addition, CMDC has
relationships with lenders in the metro area that may be working on projects in St. Louis Park.
Program Guidelines
Proposed program Guidelines for the award and processing of revolving loans are attached. These
guidelines are intended to be used as the procedure for the EDA to follow in the granting and
administration of revolving loan funds. The guidelines state the current minimum and maximum
loan amounts, desired qualifications necessary for approval of an application, and outline the
administration of the program including the fund management services to be provided by CMDC.
The EDA’s legal counsel has reviewed the Guidelines and supports their adoption.
Application Procedure
The Revolving Loan Fund would be governed by the St. Louis Park EDA and all credit decisions
would ultimately be made by the EDA. Fund management services would be provided by CMDC
which includes loan packaging, underwriting, and marketing services. To streamline the lending
process, loan decisions and recommendations would be based on criteria pre-established jointly
by the EDA and CMDC. As part of the guidelines, authorization would be provided to the EDA
Executive Director to sign off on recommended loan approvals that meet the fund’s criteria. This
authorization will require an amendment to the EDA Bylaws. Under the current EDA Bylaws, the
Executive Director is authorized to sign off on loan agreements under $50,000. It is proposed that
the Executive Director be authorized to sign off on loan agreements up to $200,000.
Special Study Session Meeting of February 16, 2016 (Item No. 2) Page 4
Title: Proposed St. Louis Park Revolving Loan Fund Program
The procedure for processing loan applications would be as follows:
Loan applications must comply with the EDA guidelines as well as CMDC’s underwriting
criteria.
Each application would undergo CMDC review.
CMDC would make a funding recommendation on each application to the EDA.
City staff would review each application and CMDC recommendation.
If an application is recommended for approval by the CMDC and City staff, the EDA
Executive Director would be asked to execute the loan agreement.
Staff would provide a report to the EDA summarizing any approved loans.
CMDC would monitor loans for compliance and would provide quarterly updates to the
EDA.
CMDC Management and Fees
Under the proposed Management Agreement with the EDA (attached), CMDC would provide the
following services to the EDA.
a. Revolving Loan Fund marketing to St. Louis Park area lenders
b. Loan packaging
c. Loan underwriting services
d. Loan servicing
e. Portfolio reporting (quarterly)
f. Attendance at City staff meetings on an as needed basis.
In consideration for CMDC’s management services, the EDA would compensate CMDC as
follows:
a. Administration Fee
An annualized administration fee of two percent (2%) of the balance of all outstanding
loans. This 2% would be paid monthly to CMDC on a pro rata basis at the rate of ½ of 2%
per month. For example, if the outstanding loan balance is $100,000.00, CMDC would be
paid $166.67 per month commencing on the first day of the month and thereafter during
the term of the loan.
b. Packaging, Processing and Servicing Fees
In addition to the Administrative Fee, CMDC would be entitled to receive indirect payment
from RLF borrowers as follows:
A packaging/processing fee of 1.5% of the loan amount or $1,500 whichever is
greater.
A servicing fee of .5% of the outstanding loan balance.
Borrowers will be required to pay all legal and other loan closing costs.
These fees would be rolled into the loan balance of the borrower. Such fees are consistent
with the SBA 504 loan program.
Thus, there would be no direct charge to EDA for CMDC’s Management Services as application
and processing costs would be incurred by borrowers and administrative fees would be offset by
the loan portfolio’s interest income.
Special Study Session Meeting of February 16, 2016 (Item No. 2) Page 5
Title: Proposed St. Louis Park Revolving Loan Fund Program
Termination
The Management Agreement with CMDC may terminated by either party upon ninety (90) days
written notice to the other.
Funding Source
The proposed Revolving Loan Fund would be capitalized by an annual $400,000 set aside within
the Development Fund. In other words, each year $400,000 within the Development Fund would
be dedicated to providing gap financing loans in conjunction with CMDC. These funds would
remain in the City’s possession until a loan is authorized.
NEXT STEPS: Staff would like feedback on the proposed Revolving Loan Fund program,
Guidelines, and Management Agreement with CMDC. Should the EDA wish to proceed with the
initiative, staff would schedule the above for formal approval on March 21st. A public hearing for
the amendment to the EDA Bylaws would be scheduled on the same date.
St. Louis Park Economic
Development Authority
Revolving Loan Fund
Guidelines
Adopted , 2016
St. Louis Park Economic Development Authority
5005 Minnetonka Blvd
St. Louis Park, MN 55416
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 6
1
Table of Contents
Revolving Loan Fund Guidelines
I Introduction Page 1
II Authorization and Funding Sources Page 1
III Purpose Page 1
IV Program Objective Page 1
V Eligible Activities Page 2
VI Ineligible Activities Page 3
VII Loan Terms and Conditions Page 4
VIII Guidelines for Application, Approval and Servicing Page 6
IX Delinquency Page 9
X Default Page 10
XI Recaptured Funds Page 10
XII Fund Acknowledgement Page 10
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 7
Revolving Loan Fund Guidelines
I. Introduction
The purpose of this document is to provide written guidelines for the award and processing
of loans by the St. Louis Park Economic Development Authority (EDA). These guidelines
are intended to be used as the procedure for the EDA to follow in the granting and
administration of revolving loan funds. Conformance with these Guidelines does not entitle
any applicant to financial assistance under this program. The Guidelines state the current
minimum and maximum loan amounts as well as desired qualifications necessary to approve
an application. The EDA retains the right to accept or deny applications on the basis of
evaluating additional criteria it deems prudent and necessary. All applicants are subject to
approval by the EDA or its designee(s). This program may be amended or discontinued at
any time without prior notice.
II. Authorization and Funding Sources
Minnesota Statutes, Sections 469.090 to 469.1082, as amended, authorizes the EDA to
provide loans to private businesses. The Revolving Loan Fund shall be capitalized through
the City’s Development Fund.
III. Purpose
The purpose of the Revolving Loan Fund is to make funds available to enable local and area
businesses to grow and expand their enterprises thereby creating employment opportunities
and increasing the City’s tax base resulting in enhanced economic vitality. Loans are to be
provided when the economics of a project cannot be overcome exclusively with conventional
financing and where there is public interest in seeing the business investment occur at the
proposed location. The Revolving Loan Fund is not to be utilized in lieu of commercial
lending but in participation with such lending sources.
The mission of the revolving loan fund is to promote local business development and
expansion and attract new business to the community so as to increase the City’s tax base,
create and retain permanent private sector jobs thereby improving economic opportunity and
living standards for the citizens of St. Louis Park.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 8
IV. Program Objective
The objective of the Revolving Loan Fund is to fill the financing gap between project costs
and private debt financing and private equity by making direct loans so as to facilitate the
growth and expansion of certain business enterprises within the St. Louis Park city limits.
The EDA will consider providing a revolving loan to facilitate private sector projects to
achieve one or more of the following purposes:
• Support development growth and expansion of St. Louis Park small
businesses.
• Conform to the City's Comprehensive Plan and Zoning Ordinance. Any required
changes to the Plan and Ordinance must be under active consideration by the City at the
time a Development Contract providing the assistance is scheduled for approval.
• Revitalize identified key areas of the City of St. Louis Park through the replacement of
blight, nonconforming uses and replacement of other negative influences with high
quality, private development.
• Serve as a catalyst to encourage further private "spin-off” development within tired,
deteriorated, or functionally obsolete areas so as to lead to their economic stabilization
and revitalization.
• Expand the municipal tax base.
• Retain local jobs and/or increase the number and quality of jobs (e.g. stable employment
with attractive wages and benefits).
• Encourage projects that exhibit efficient urban design; quality architecture and materials;
sustainable "green" design; energy efficiency; enhanced stormwater management;
improved public safety; and decrease the capital and operating costs of local government.
• Promote principles related to Livable Communities and Transit Oriented Development
so as to create compact, efficient mixed-use developments that include: attractive design,
quality amenities (e.g. public art) as well as pedestrian and transit friendly environments.
• Fulfill the strategic directions outlined in Vision St. Louis Park.
V. Eligible Activities; Costs
The following activities and costs are eligible for financing under the Revolving Loan Fund.
A. To assist small businesses primarily by providing financial assistance for growth
and expansion, rehabilitation, and facade enhancement.
B. Eligible costs. Eligible costs may include the following:
1. Site improvements. Improvements to the land which are a portion of the project
cost including but not limited to: building demolition, shoring, grading, new streets
or street improvements, parking lots, utilities, and landscaping.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 9
2. Purchase or renovation of building. Purchase and, if necessary, renovation of an
existing industrial or commercial facility is permitted.
3. Purchase machinery or equipment. Purchase of major items of machinery and
equipment independent of land and buildings. These items must be defined to
have a useful life of at least 10 years.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 10
4. Building construction. Construction of a new building and/or a major addition to
an existing building.
5. Leasehold improvements. Revolving loan funds may be used for certain leasehold
improvements provided the lease is equal to or greater than the term of the loan
and the City secures a lien on the land or building, and improvements.
VI. Ineligible Applicants, Activities and Costs
The following applicants, projects, activities, and costs are ineligible for financing through
the Revolving Loan Fund.
A. Ineligible applicants: Applications from the following entities will not be considered for
financing : sexually oriented businesses, pawn shops, tattoo parlors, off sale liquor
stores, tobacco shops, gun shops, check cashing businesses, non-profit institutions,
gambling organizations, warehouses, lending or investment organizations, or land
speculators.
B. Ineligible activities Applications to finance the following activities will not be considered
for financing:
• Activities that place extraordinary demands on City services.
• Activities that are inconsistent with Vision St. Louis Park including those considered
to create environmental problems in the opinion of the local, state, or federal
governments due to the type of operation or processes involved in the business
operation.
• Activities that continue and/or expand nonconforming uses.
• Any activity deemed illegal by federal, state, or local law or ordinance.
C. Ineligible costs: Ineligible costs include but are not limited to: developer fees, management
fees, financing costs, franchise fees, debt repayment or consolidation, moving costs,
refinancing, operating costs, working capital or work completed prior to loan approval.
VII. Loan Terms and Conditions
Loans provided under the Revolving Loan Fund shall be subject to the following terms and
conditions.
A. Maximum and minimum loan amounts for eligible projects.
1. Maximum loan amount. The maximum loan available from the revolving loan
fund for each eligible project is limited to $200,000 or 40% of total project cost,
whichever is less.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 11
2. Minimum loan amount. The minimum loan amount available from the revolving
loan fund for each eligible project is $50,000.
B. Interest rate: The interest rate shall be fixed and will be determined at the time of loan
application and funding.
C. Term: The term of the loan will be tied to the useful life of the assets being financed.
The following general terms apply:
1. Machinery/equipment. The term of the loan for machinery/equipment shall
not exceed 10 years
.
2. Land/building acquisition. The term of the loan for land/building shall not
exceed 20 years.
3. New construction/renovation. The term of the loan for new
construction/renovation shall not exceed 20 years.
4. Balance due upon Sale. All balances will be due and payable if and when the loan
recipient sells or otherwise transfers any or part or his/her interest in the
property or fails to meet any of the guidelines established within this document
before the maturity date of the loan or relocates any part or all of the business
outside the City of St. Louis Park.
D. Wage and job goals: Wage and Job goals shall be established for all loans in excess of
$75,000. The wage and job goals will be identified in the Loan Agreement between
the St. Louis Park EDA and the borrower. The loan agreement, must include: (1)
the number of jobs created, which may include separate goals for the number of
part-time or full-time jobs, or, in cases where job loss is specific and demonstrable,
goals for the number of jobs retained; (2) wage goals for any jobs created or retained;
and (3) wage goals for any jobs to be enhanced through increased wages.
E. Green Building Policy: Building expansions 15,000 square feet or greater and
renovations 50,000 square feet or greater receiving $200,000 in financial assistance
are required to comply with the City of St. Louis Park’s Green Building Policy.
F. Equity participation: There shall be a minimum 10% owner equity investment of total
project costs required of all applicants.
G. Collateral requirements: All loan agreements will be secured by one or more of the
following;
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 12
1. a promissory note,
2. mortgage,
3. or security agreement as required by the EDA.
4. The revolving fund may take a subordinate position to the primary lender on
the assets financed; and surety deposits shall be required for certain construction
contracts as set forth in Minnesota Statutes 290.9705 .
H. Letters of Commitment: Letters of commitment from all funding sources must be
submitted for the application to be deemed complete.
I. Personal guaranty: Personal guaranties of persons with an ownership interest of 20% or
greater are required. Personal guaranties of persons with ownership interest between
5% to 19% may be required by the EDA but are discretionary.
J. Loan repayments: Loan payments must begin within one month of funding of the
Revolving Loan. The EDA may make exceptions to this rule on a case-by-case basis.
K. Loan prepayment: Prepayments are permitted where the borrower makes the EDA
whole for any losses or costs associated with the prepayment.
L. Notice of award or denial: Applicants will be notified by the EDA in writing not more
than fourteen (14) business days after final action has been taken on their revolving
loan fund application.
M. Loan closing documents: The EDA will close the loan within sixty (60) days of final EDA
approval of the loan application. At that time, the EDA will deliver to the borrower
all closing documents and a final debt service schedule. In exchange, the borrower
will deliver to the EDA its Promissory note to evidence the loan.
N. Post closing amendments and modifications: Requests for amendments and modifications
following award, closing or disbursement of funds to the underwriting of the original
request require EDA approval and shall be presented at the next scheduled meeting of
the EDA.
O. Loan denial: The EDA will not make a loan if it determines the loan amount would
place an undue burden on the financial resources of the borrower or the borrower
cannot demonstrate adequate financial capacity to repay the loan or the EDA
determines that making the loan is not in the best interest of the City or EDA.
P. Appeal: There will be a complaint and appeal procedure for aggrieved applicants:
1. Written notice. Applicants will receive written notice of denial of the loan and
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 13
the reasons(s) for the determination within fourteen (14) days of the
determination.
2. Petition. The aggrieved applicant may petition the EDA in writing for
reconsideration within fourteen (14) days from date of the written notice of
denial. Any request to appear before the EDA must be in writing and must
be submitted at least seven (7) days prior to the EDA’s scheduled meeting.
Upon receipt of the written petition for reconsideration, the EDA shall
consider the petition at its next scheduled meeting and advise the petitioner
in writing of its decision within fourteen (14) days of that meeting. The
EDA’s decision will be final.
3. Re-application. Applicants aggrieved by the EDA’s final decision may re-
apply for revolving loan funds after ninety (90) days if the concerns in the
preceding application are adequately and appropriately addressed.
VIII Guidelines for Application Approval and Servicing
A. All applicants shall first contact a primary lending institution to determine if
additional financing from the EDA is needed to accomplish the project, and if so,
how much.
B. The applicant and the primary lender shall then meet with EDA and CMDC
staff to obtain information about the RLF program, discuss the project, and obtain
application forms.
C. The applicant shall complete and submit an application form to the EDA and CMDC
staff, along with a processing fee of 1.5 percent of the loan request or $1,500
whichever is greater. (The fee is used to cover processing expenses and will be
returned less expenses only if application is denied.) The applicant must provide
evidence of its ability to meet the equity requirements or provide a letter of
commitment for conventional financing from the primary lending institution.
D. The EDA will assign application review to Central Minnesota Development
Company (CMDC) which will serve as underwriter for the RLF. The application
will be reviewed by the CMDC and EDA staff to determine if it conforms to all
City and EDA policies and ordinances and to consider the following:
1. The availability and applicability of other governmental grants and/or
loan programs.
2. Whether the proposed project will result in conformance with building
and zoning codes.
3. Whether it is desirous and in the best interests of the public to provide
funding for the project.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 14
E. With written permission granted by the applicant, the application will be submitted
by the EDA staff to the Central Minnesota Development Company as the EDA’s
advisor.
F. CMDC will review each application in terms of its consistency with the goals of the
RLF Program as enumerated above.
G. CMDC and EDA staff will evaluate the project application in terms of the following:
a. Project Design - Evaluation of project design will include review of
proposed activities, timelines and a capacity to implement.
b. Financial Feasibility - Availability of funds, private involvement, financial
packaging and cost effectiveness.
• Appropriate ratio of private funds to RLF funds.
• Sufficient cash flow to cover proposed debt service as demonstrated by
financial statements and projections.
• Ability to demonstrate a positive net worth.
• Letter of Commitment from applicant pledging to complete the project
during proposed project duration, if the loan application is approved.
• Letter of Commitment from other financing sources stating terms and
conditions of their participation in the project if applicable.
Sufficient Collateral
• All other information as required in the application and/or additional
information as may be requested by the EDA and CMDC.
• Project compliance with all City codes and policies.
• CMDC will recommend the approval, denial, or request a resubmission to
EDA staff. A recommendation from CMDC will be forwarded to the EDA for
final action.
Right of Refusal
The EDA may deny any project which, in its opinion, conflicts with or does not conform
to the guidelines established in this document.
Approval. If approved, the applicant will be sent a written commitment letter that will
outline the terms and conditions of the loan approval. A copy of the commitment letter will
be signed by the borrowers and guarantors signifying acceptance of the terms and conditions
of the loan proposal and the conditions for funding. Upon the return of the executed
commitment letter, EDA staff will begin the loan closing process with the EDA’s attorney.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 15
Closing. The EDA’s legal counsel and/or CMDC’s legal counsel will prepare
documentation and coordinate the closing with the borrower or the borrower’s counsel.
Loan Servicing: The EDA will contract with Central Minnesota Development Company
(CMDC) for all loan servicing. When servicing EDA loans, CMDC will comply with Loan
Program Requirements and in accordance with prudent and commercially reasonable lending
standards.
CMDC is responsible for routine servicing including receipt and review of the borrower's or
Operating Company's financial statements on an annual or more frequent basis and
monitoring the status of the borrower and RLF loan collateral.
CMDC will respond to borrower requests for loan modifications following approval of the
EDA.
For any RLF loan that is more than three months past due, CMDC will promptly notify the
EDA that the loan should be placed in liquidation unless the RLF loan has an EDA-
approved deferment or is in compliance with an EDA-approved plan to allow the borrower
to catch up on delinquent loan payments.
CMDC will work with the EDA and borrower to cure defaults and initiate workouts.
1. Monitoring. CMDC staff will monitor loans for compliance with the accepted terms and
conditions including job creation statistics and wage and benefit levels.
CMDC is responsible for monitoring that the borrower makes all required insurance
premium payments and has paid all taxes when due.
CMDC is responsible for filing renewals and extensions of security interests on collateral
for the RLF loan, as required.
2. Reports. CMDC will provide quarterly portfolio reports to the EDA.
3. Records. Computer files and conventional paper files will be maintained for the purpose
of documenting, tracking, and monitoring program and loan activities and will be
maintained by the EDA and CMDC staff
a. Program records. The following program information will be maintained
in the project file, including but not limited to:
i. Environmental report;
ii. Eligibility determination records;
iii. Property inspection report;
iv. Progress reports;
v. Credit Memo;
vi. Correspondence;
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 16
vii. Loan documents; and
viii. Executed loan agreement.
b. Financial records. The following financial information will be maintained in
each Loan file, including but not limited to:
i. Copy of the executed loan agreement;
ii. Disbursement data;
iii. Progress reports;
iv Repayment data; and
v. Amortization tables.
4. Record retention. All program and financial records, supporting documents, statistical
records, environmental review records and other records pertinent to the revolving loan
program shall be maintained for a period of at least three (3) years from the final project
report and project closeout date.
IX. Delinquency
There shall be a notification procedure for delinquent loans.
A. The City Finance Department is responsible for the timely posting of all loan
repayments.
B. Thirty (30) day notice. Upon thirty (30) days delinquency, CMDC will notify the
City Controller of the delinquency and shall send the borrower a delinquency notice
requesting payment within fifteen (15) days. A copy of the letter shall be forwarded to
the EDA Executive Director.
C. Forty-five (45) day notice. If payment has not been received by the 45th day a second
delinquency notice will be sent to the borrower by CMDC requesting payment within
fifteen (15) days. A copy of the letter shall be forwarded to the City Controller and
EDA Executive Director.
D. Sixty (60) day notice. If payment has not been received by the 60th day, CMDC will
attempt to contact the borrower by telephone to address the delinquency. CMDC shall
also send a notice of default to borrower via certified mail requesting immediate
payment and advising the borrower the delinquency will be placed on the EDA agenda
for discussion at an upcoming meeting.
E. Ninety (90) day notice. If no repayment plan is submitted by the borrower, or if
there is no attempt by the borrower to negotiate the amount due, the CMDC will
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 17
contact the EDA Executive Director and the EDA attorney to sending a 90 day letter
calling due the loan in full.
F. Negotiation. Throughout this process, every attempt will be made to preserve the
company, the jobs, and the loan funds.
X. Default
If the EDA determines a loan to be in default it may adopt a resolution declaring the
borrower in default and convey the matter to the EDA legal counsel for disposition.
XI. Recaptured funds.
Loan repayments shall be deposited into the City Development Fund. These recaptured funds
are available to other applicants for utilization as gap financing for certain approved
economic development projects. The revolving loan fund shall be administered by a financial
management system in compliance with all state and federal requirements.
XII. Funding acknowledgement
For projects financially supported by revolving loan funds the Borrower shall:
A. Acknowledge revolving loan fund support in certain written materials including company
brochures, reports, newsletters, and press releases; and
B. On the building or expansion construction site post a sign acknowledging financial
support from the St. Louis Park EDA.
C. Building expansions greater than 15,000 square feet or greater and renovations 50,000
square feet or greater receiving $200,000 in financial assistance are required comply with
the City of St. Louis Park’s Green Building Policy.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 18
1
REVOLVING LOAN FUND MANAGEMENT AGREEMENT BY AND BETWEEN
THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
AND
CENTRAL MINNESOTA DEVELOPMENT COMPANY
This agreement is entered into this ____ day of March, 2016, by and between the St. Louis Park
Economic Development Authority, a public body corporate and politic under the laws of
Minnesota, located at 5005 Minnetonka Blvd., St. Louis Park, MN 55416 (“EDA”) and Central
Minnesota Development Company, a Minnesota non-profit corporation (“CMDC”), located at
1885 Station Parkway NW, Andover, MN 55304.
RECITALS
WHEREAS, the EDA has established a Revolving Loan Fund (“RLF”) for the purposes of
promoting the economic development and enhancement of the community for its residents;
and
WHEREAS, the RLF is designed to leverage other financing programs, as well as private
financing, provided by the commercial banking industry to induce investment in the
community; and
WHEREAS, the EDA is in need of Revolving Loan Fund Management Services to
administer the RLF including; origination of loans, transactional loan closings, and loan servicing
(the “Management Services”).
WHEREAS, CMDC has the expertise and personnel to adequately provide the desired
Management Services; and
WHEREAS, the EDA wishes to engage CMDC to provide said services necessary to carry
out the initiative of operating a RLF;
NOW THEREFORE, upon reasonable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 19
2
1. SERVICES
CMDC agrees to provide and perform RLF Management Services for the EDA which shall include
the following:
a. Revolving Loan Fund Marketing to St. Louis Park area lenders;
b. Loan Packaging;
c. Loan Underwriting Services;
d. Loan Servicing;
e. Portfolio reporting; and
f. Attendance at City staff meetings on an as needed basis.
Loan approvals shall be the sole responsibility of the EDA. CMDC shall be empowered to service
and manage the EDA loan portfolio in the ordinary course of its business in the same manner as
it services similar loans in its own portfolio. CMDC shall have the exclusive right to collect from
the Borrower or any Guarantors, third parties, or otherwise on account of the Loan, including,
without limitation, principal, interest, fees, and other payments whether such sums are
received directly from Borrower, any Guarantors, or any other persons.
2. TERM OF AGREEMENT
This Agreement is effective commencing the date of execution and shall continue until
terminated as provided herein.
3. PAYMENT FOR SERVICES
In consideration for its Management Services, the EDA agrees to compensate CMDC as follows:
a. Administration Fee
An annualized administration fee of two percent (2%) of the balance of all outstanding
loans. Said 2% shall be paid monthly to CMDC on a pro rata basis at the rate of 1/12 of 2%
per month. By way of example, if the outstanding loan balance is $100,000.00, CMDC will be
paid $166.67 per month commencing on the first day of the month and thereafter during the
term of the loan.
b. Packaging, Processing and Servicing Fees
In addition to the Administrative Fee described above, CMDC shall also be entitled to
receive indirect payment from RLF borrowers as follows:
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 20
3
• A packaging/processing fee of 1.5% of the loan amount or $1,500 whichever is greater
will be charged to all Borrowers.
• A servicing fee of .5% of the outstanding loan balance.
• Borrowers will be required to pay all legal and other loan closing costs.
4. CONFIDENTIALITY
Subject to the State of Minnesota Data Practices laws, the EDA agrees that it will not reveal,
divulge or make known to any person, the firm, or corporation, any secret or confidential
information during or after the term of this Agreement. Confidential information shall be
defined as knowledge, systems, practices, or other information submitted in writing or other
tangible form designated as confidential by CMDC. The EDA shall use such confidential
information for the limited purposes of the Agreement.
5. RELATIONSHIP
Nothing in this Agreement shall be construed to create an employment, partnership, joint
venture, license, or agency relationship and neither party shall have the right or authority to
bind the other. For purposes of this Agreement, CMDC shall be deemed an independent
contractor. CMDC’s employees shall not be entitled to any employment benefits customarily
given to EDA/City employees.
6. TERMINATION
This Agreement may terminated by either party upon ninety (90) days written notice to the
other. Such termination shall not affect the rights and obligations of the parties accrued prior to
the termination date or rights under paragraphs 3 and 4 herein.
7. ASSIGNABILITY
This Agreement shall not be assignable by either party without the prior written consent of the
non-assigning party.
8. LAW
The laws of the State of Minnesota shall govern this Agreement. The parties agree that the
venue of any legal action arising under this Agreement shall be Anoka County, Minnesota.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 21
4
9. SEVERABILITY
If any provision of this Agreement shall be held by any court of competent jurisdiction to be
illegal, invalid, or unenforceable, such provision shall be construed and enforced as it had been
more narrowly drawn so as to be legal, valid, or enforceable. Such illegality, invalidity, or
unenforceability shall not have effect upon or impair enforceability or any other provision of
this Agreement.
10. INSURANCE
CMDC agrees to provide proof of workers’ compensation and comprehensive general liability
insurance and errors and omissions insurance. Comprehensive and general liability insurance
shall be in the minimum amount of $1,000,000.00. The general liability insurance policy shall
name the CITY as an additional insured.
11. INDEMNIFICATION
CMDC’s Indemnity. To the fullest extent permitted by law, CMDC will indemnify, protect and
hold CITY and its assigns and its mortgagees harmless from, and against any and all liabilities,
claims, demands, losses, damages, costs, and expenses (including attorneys' fees) arising out of
or relating to, the performance of work under this Agreement; but only to the extent caused in
whole or in part by the gross negligent acts, errors, or omissions of CMDC, CMDC’s
subcontractor(s), or anyone directly or indirectly employed or hired by CMDC, or anyone for
whose acts CMDC may be liable. CMDC agrees this indemnity obligation shall survive the
completion or termination of this Agreement.
EDA’s Indemnity. To the fullest extent of the law, EDA will indemnify, protect and hold CMDC
and its employees, consultants or agents harmless from and against any and all liabilities,
claims, demands, losses, damages, costs and expenses (including attorneys' fees) arising out of
or relating to the gross negligence or willful misconduct of EDA, its agents, contractors or
employees. EDA agrees that this indemnity obligation survives the completion or termination.
12. NONDISCRIMINATION
CMDC in performing duties under this Contract shall not discriminate against any person upon
the basis age, race, creed, color, religion, gender, sexual orientation, national origin, veteran
status, physical, or mental disability.
13. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties. This Agreement may be
amended only by written agreement of both the EDA and CMDC.
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 22
5
IN WITNESS WHEREOF, the parties have executed this Agreement on the day of the year
first written above.
ST. LOUIS PARK ECONOMIC CENTRAL MINNNESOTA DEVELOPMENT
DEVELOPMENT AUTHORITY COMPANY
By: By:
Anne Mavity, President Mike Mulrooney, President
By:
Tom Harmening, Executive Director
Special Study Session Meeting of February 16, 2016 (Item No. 2)
Title: Proposed St. Louis Park Revolving Loan Fund Program Page 23