HomeMy WebLinkAbout2025/11/03 - ADMIN - Minutes - City Council - Study SessionOfficial minutes
City council special study session
St. Louis Park, Minnesota
Nov. 3, 2025
The meeting convened at 7:03 p.m.
Council members present: Mayor Nadia Mohamed, Margaret Rog, Lynette Dumalag, Sue Budd,
Tim Brausen, Yolanda Farris, Paul Baudhuin
Council members absent: none
Staff present: City manager (Ms. Keller), community development director, interim building and
energy director (Ms. Barton), housing manager (Ms. Olson), planning manager (Mr. Walther)
Discussion items
1. Inclusionary housing policy updates
Ms. Olson presented the staff report.
Ms. Olson noted the policy promotes high-quality housing for households with a variety of
income levels, ages and sizes in order to meet the city's goal of preserving and promoting
economically diverse housing options in our community. The city recognizes the need to
provide affordable housing to households of a broad range of income levels in order to
maintain a diverse population and to provide housing for those who live in the city. The
inclusionary housing policy was adopted to ensure that a portion of each new development
receiving city financial assistance, seeking Planned Unit Developments (PUD) land use
approvals, or requesting a comprehensive plan amendment includes units affordable to low-
and moderate-income households and working families, or, in the case of for-sale units, make a
payment in place of including affordable units.
Ms. Olson reviewed the four recommended amendments to the policy:
• Remove the requirement that projects seeking a comprehensive plan amendment must
comply with the policy.
• Allow developers to provide affordable for-sale units as an alternative to paying a fee in
lieu.
• Ensure equal access to amenities and common areas for affordable and market-rate units.
• Permit income averaging for qualifying projects
Ms. Olson stated the policy question: Does the council support the proposed amendments to
the inclusionary housing policy?
Council Member Baudhuin asked for clarification on the fee in lieu. Ms. Olson stated that if a
project had ten or more for-sale units, they would be required to make a payment in lieu of
affordable units. The calculated fees go into the Affordable Housing Trust Fund. This is
applicable for developments that met any of the triggers for Inclusionary Housing.
Council Member Baudhuin asked if any development projects have backed out because of this
policy. Ms. Olson confirmed that one project had backed out. Ms. Barton stated the fee in lieu
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was very high because the maximum had not been capped at $100,00 per unit at that time.
Because of that, the developer could not afford to proceed with the project.
Council Member Dumalag noted that the development in question was proposed for Ward 2.
The developer understood the payment in lieu to be one figure, but they were not considering
the master mortgage language. Ms. Olson stated this language was clarified last year and staff
now proposes the addition of an option to include affordable units in the development. Instead
of a requirement to make the payment in lieu, the developer could opt to include affordable
units in the development. The decision would be the developer’s choice.
Council Member Budd asked if the affordability term is being changed from 25 to 30 years. Ms.
Olson stated that the rental affordability term is set at 26 years, and the for-sale property
affordability term is set at 30 years. Council Member Budd asked if it is a deterrent that a buyer
cannot sell for 30 years. Ms. Olson stated the property can be sold, but there would be a
restriction on the amount it is sold for and who would be eligible to purchase it, as it must
remain affordable.
Council Member Baudhuin asked how offering amenities is monitored and enforced. Ms. Olson
stated that all who have access to a building have access to amenities. St. Louis Park wants to
keep it that way and enforcement will ensure the continued practice. Ms. Barton added that
enforcement is reactive and the city relies on reporting.
Mayor Mohamed asked if having a washing machine within an apartment is defined as an
amenity. Ms. Olson stated that the policy refers to community area amenities that all have
access to, versus washing machines within an apartment unit.
Mayor Mohamed noted it was a deviation from city values when market rate apartments have
a washing machine within it, and affordable housing apartment units in the same building do
not. Ms. Barton agreed and noted the developer’s proposed departure from the policy was
approved by the council as an exception for that particular project.
Council Member Rog stated there are several apartments that have affordable and market-rate
units, and the affordable units do not have access to the pool within the market-rate building,
even though they live in the same development, which is not appropriate. Council Member Rog
asked if this would be codified in future developments so as not to happen. Mr. Walther stated
that in the two developments referenced, the affordable and market rate units were not in the
same buildings, and they were financed and owned separately. He pointed out that staff did
approach the developers about having shared access to amenities in the multiphase
development, but because of separate ownership and financing, a compromise was not
reached. Mr. Walther stated the unique approach to meeting the inclusionary housing policy
for each of these developments were approved by the council at the time, in the interests of
moving forward with the development as a whole.
Council Member Rog asked where people should report that they do not have access to
amenities. Ms. Barton stated that they could call the main phone number for the City of St.
Louis Park to be routed to the appropriate staff.
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Council Member Baudhuin asked whether income averaging has been tested. Ms. Olson stated
this is allowed under the tax credit program. City policy states that if a development is in
compliance with a federal tax credit program, then they are in compliance with the city’s
inclusionary housing policy. Ms. Olson added that the Minnesota Department of Housing
monitors the tax credit program.
Council Member Rog noted that the legal mechanisms are less clear with the Comprehensive
Plan Amendment requirement. She stated this is not a reason not to do something and added
the city has been a leader in inclusionary housing. She is not in support of removing the
requirement.
Mr. Walther stated that typically, when there have been amendments to the Comprehensive
Plan, it has been specific to a site and working through a PUD while asking for financial
assistance. In these situations, an amendment to the Comprehensive Plan has not been the sole
request. There may be alternative ways the city can explore to add affordable housing in future
developments that do not need to request a PUD or city funds that would be on firmer ground.
For example, in an upcoming study session the council will be asked about including bonuses in
the zoning code when city policies like the inclusionary housing policy are met.
Council Member Brausen stated that he does not want to give up any potential tool for
affordable housing, and he would not approve of removing the comprehensive plan
requirement from the policy.
Council Member Dumalag asked if the policy asks developers who build apartments to consider
selling them as condos. Ms. Olson stated this would be only for new developments of ten or
more units, including town homes.
Council Member Brausen stated he is in favor of all the other changes presented by staff
related to the inclusionary policy.
Council Members Budd, Baudhuin, Farris and Rog voiced that they are in favor of all changes
presented. Council Member Dumalag stated she was reluctant to remove comprehensive plan
amendments from the policy without an alternative measure in the zoning code in place but
supported the other proposed changes.
Mayor Mohamed added she is in favor of all the changes as well and added that this policy feels
preventive.
Council Member Baudhuin asked the council to consider a city renters' bill of rights to help
people understand what they city requires of landlords and who to call if renters need
assistance.
Written Reports
3. Conduit bond policy
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Council Member Budd asked if this is the first report the council has received on the Broadway
Street development. Mr. Walther confirmed this and noted there are not many additional
details as yet. He added that the proposed amendments to the policy guidelines would provide
more flexibility regarding the timing of when certain affordable housing developments may
apply for bonding.
Communications/meeting check-in (verbal)
The meeting adjourned at 7:42 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Nadia Mohamed, mayor
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