HomeMy WebLinkAbout2025/10/20 - ADMIN - Minutes - City Council - Study SessionOfficial minutes
City council special study session
St. Louis Park, Minnesota
Oct. 20, 2025
The meeting convened at 6:34 p.m.
Council Members present: Margaret Rog, Lynette Dumalag, Sue Budd, Tim Brausen, Yolanda
Farris, Mayor pro tem Paul Baudhuin
Council Members absent: Mayor Nadia Mohamed
Staff present: City manager (Ms. Keller), community development director, interim building and
energy director (Ms. Barton), economic development manager (Ms. Monson), financial analyst
(Ms. Stephens), deputy finance director (Mr. Olson), deputy city manager (Ms. Walsh), planning
manager (Mr. Walther), police advisory commission staff liaison (Mr. Weigel), community
engagement coordinator (Mr. Coleman)
Guests: Karl Gamradt (Police Advisory Commission Chair), Saul Eugene (Police Advisory
Commissioner Vice Chair), Stacie Kvilvang and Jason Aarsvold (Senior Municipal Advisors for
Ehlers Public Finance Advisors)
Discussion items
1. Boards and Commissions check in with the city council: Police Advisory Commission
Chair Gamradt and Commissioner Eugene presented the staff report. Staff liaison to the Police
Advisory Commission (PAC) is Lt. Greg Weigel. The PAC is one of five advisory boards and
commissions. Their purpose is to enhance the awareness of police department capabilities and
services, provide an opportunity for citizen involvement in police services and encourage
exchange between the police department and the community.
Chair Gamradt and Commissioner Eugene presented an overview of the commission's approved
work plan, completed tasks, ongoing projects and strategies for upcoming work plan items.
They asked the council for feedback, potential modifications or additions to the work plan and
any other relevant topics concerning the commission's activities.
Chair Gamradt presented the PAC’s initiatives:
• Community connections through town halls
• Outreach to other cities’ public safety advisory groups
• Youth recruitment & involvement
• Survey and data gathering
• Assist St. Louis Park with its Vision 4.0 planning process
Chair Gamradt noted various other items conducted at commission meetings over the past year
including a department tour, a “becoming a candidate” presentation, a behavioral health
presentation and a National Night Out ride-along. Chair Gamradt added that the PAC also
participated in a visioning process with the police department on community policing and the
future of policing.
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Chair Gamradt stated the PAC would like to request a study session with the city council but is
unsure how to pursue this. He wants to know how to communicate with the council. Chair
Gamradt added that the PAC liaison role needs clarification and direction on how to engage
with the council and direction on how to assist the PAC in communicating with the council.
Council Member Farris asked what the PAC needs from the council, noting that the PAC is a
wonderful commission.
Chair Gamradt stated that with lessons learned, the PAC needs clarification from the council on
policies and procedures for commissioners and the liaison role, as well as with city staff and the
town hall program. Chair Gamradt noted the PAC needs instruction on how approvals are made
and communicated, especially from the standpoint of planning work.
Council Member Rog asked about piloting.
Council Member Budd stated there is a two-way communication tool for the pilot programs,
and it sounds like some commissions are more aware of this process than others.
Mr. Coleman stated the information regarding pilot programs was disseminated to all
commission liaisons at the same time.
Council Member Brausen stated he was part of the workgroup for commissions, and his
understanding is that the process for communication with the council to commissions will be
reviewed again at the end of the year and then updates and changes will be made.
Chair Gamradt stated it sounds like there is a process in place, and it just needs to be
communicated to the PAC.
Council Member Budd asked if staff could set up a process to get this information to
commissioners and liaisons. Mr. Coleman stated yes, adding that liaisons currently work with
commissions on what needs to come before the council.
Council Member Rog stated it was her understanding that the boards and commissions
generate information that should come directly to the council. Mr. Coleman stated there is still
a reporting process before the form goes to the council for review.
Council Member Rog stated she feels it is the council’s duty to hear directly from boards and
commissions as well as constituents.
Ms. Keller stated the process is the same as when the council wants a topic included for a study
session. There is a form that commissions can send to city staff for research, comment,
feedback and recommendations.
Chair Gamradt stated the process needs to be documented so he and others will know what the
expectations are from the council. Knowing expectations will help them make better use of
time at monthly commission meetings.
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Council Member Rog stated that having the process documented is a reasonable request.
Mayor pro tem Baudhuin stated it sounds like there is no clearly documented process in place
for a commission to submit a study session topic to the council. He observed this process
should be an easy resource for staff to create.
Mr. Coleman stated that the information that is currently available on the process can be
revisited, reviewed and clarified for all commission members and liaisons.
Council Member Dumalag asked if the commission’s bylaws are in city code; if the bylaws
conflict with it. Mr. Coleman stated that the bylaws are not part of city code and the topic of
alignment or amendment will be another conversation.
Council Member Budd asked whether rebranding of town halls has occurred yet. Chair Gamradt
stated that rebranding has not been brought up to the PAC yet, and that the word choice of
“town hall” is still everyone’s preference.
Council Member Brausen asked if town halls could be called “a community conversation around
public safety” instead. Chair Gamradt stated that it would be fine, but he would like to bring
that idea to the PAC for review first.
Council Member Rog stated the staff report shows that the change from “town hall” had
already been discussed with the PAC. However, Chair Gamradt stated it has not been discussed.
Chair Gamradt stated there were some initial conversations at the beginning of the year along
with feedback sought from the PAC. In the end, the sessions were slated to start as town halls.
Council Member Budd asked how many town halls are planned in a year. Chair Gamradt stated
this will be a learning process and a chance to see how much engagement will be developed in
the community, adding that the presentation is only about 30 minutes.
Council Member Budd asked about discussions with other cities. She asked if it was valuable for
PAC to know which cities are typically involved in comparisons when staff engage in similar
work. Chair Gamradt stated yes, if staff had a list of comparable cities and would share it with
PAC, that would be helpful.
Ms. Keller stated Mr. Coleman can assist with the appropriate comparison city list. Mr. Coleman
stated the PAC already has the list as provided by staff. Chair Gamradt stated that the list is
outdated and would need to be rebuilt before doing a comparison study.
Council Member Budd asked whether the previous PAC survey information was used with the
Humphrey Institute. Chair Gamradt stated yes and noted it was used as background
information.
Council Member Rog asked if PAC meets monthly and if they have ad hoc meetings in between.
Chair Gamradt stated PAC meets monthly and does not have ad hoc meetings. He had hoped to
have work group meetings between monthly meetings, but that did not happen due to
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scheduling challenges. Chair Gamradt added that each month, discussion about the work plan is
now included on the PAC’s agenda.
Council Member Rog stated she was pleased to see PAC meet with the Axtell Group. Council
Member Rog asked if there is anything else the PAC wants the council to know.
Chair Gamradt stated the biggest thing is to make processes very clear so they can be navigated
effectively.
Council Member Brausen added that the PAC is doing wonderful work. He asked whether the
city plans to send and utilize the survey, or if it will be utilized in another way. Chair Gamradt
stated it depends and that PAC will present the questions as well as the implementation, and
this will be discussed further. Chair Gamradt stated that whatever is done will be at the
discretion of the city council and the survey will be the university students' class project.
Council Member Dumalag stated she appreciated the comments from Chair Gamradt about
process for communication with the council and the ensuing discussion; now staff and the
council can be clearer about communication.
Council Member Rog asked staff about a timeline for addressing the process for
communication. Mr. Coleman stated that the staff will work on a timeline and report back to
the council. Ms. Keller stated that staff understand this is a priority that will be discussed
further.
Mayor Pro Tem Baudhuin asked if there are any youth commissioners on the PAC. Chair
Gamradt stated there are no youth members at this time but noted that youth members are
full voting members.
2. TIF management report
Stacie Kvilvang, Senior Municipal Advisor from Ehlers, presented the annual Tax Increment
Financing (TIF) management report.
The policy consideration for the council was between the three options presented:
Option 1: Maximize TIF pooling
• Keep all six eligible districts open in 2026.
• Transfer an estimated $2.429 million to the Affordable Housing Trust Fund (AHTF).
• Median value homestead house will see an estimated 15.6% or $279 increase (down from the
estimated 18.4%) in the city’s portion of their property tax bill due to the closure of the
Elmwood Village district.
Option 2: Maximize property tax relief
• Close all eligible TIF districts at the end of 2025.
• Assumes no tax petitions for Elmwood Apartments and sufficient tax increment received in
second half of 2025.
• No transfers to the AHTF in 2026.
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• Median value homestead house will see an estimated 12.3% or $238 increase (down from
18.4%) in the city’s portion of their property tax bill.
Option 3: Balance both objectives
• Close Wolfe Lake, 4900 Excelsior TIF, Elmwood Apartments and Elmwood Village districts at
the end of 2025. Hold open Aquila Commons, Mill City and Zarthan/16th.
• Transfer an estimated $1.416 million into the AHTF.
• City receives surplus TIF revenue share of around $400,000 in 2026 with no restrictions on
use.
• Median value homestead house will see an estimated 14.2% increase (down from 18.4%) in
the city’s portion of their property tax bill.
Ms. Kvilvang noted that six TIF districts have met their financial obligations. Of the six, one must
be closed at the end of 2025, lowering the 2026 property tax increase paid by individual
property taxpayers. The remaining five may also be closed at the end of 2025 or may be kept
open in 2026 to contribute funds to the Affordable Housing Trust Fund (AHTF). One additional
district will meet its obligations in early 2026. There may also be the opportunity to utilize
pooled TIF for city road reconstruction projects in the Capital Improvements Plan if they
support or encourage redevelopment projects; should the council desire, staff can explore this
option more fully.
Council Member Dumalag asked if the Elmwood district TIF was used to help fund water and
sewer upgrades. Ms. Kvilvang stated that is correct and noted the city also received an
extension from the legislature to extend the term of the Elmwood district and to obtain
additional funds for the Wooddale interchange.
Council Member Budd asked if $1.6 million was part of the calculation for the property tax rate.
Ms. Cruver stated that the $1.6 million is outside of the levy calculation and is straight cash that
will be programmed into the 5-year financial plan. Ms. Cruver stated staff will bring back a plan
for the council to weigh in on at a future budget discussion related to potential uses for the
$1.6 million.
Council Member Budd stated she supports option #2, noting property tax relief is a smart
move. She noted that the 11.7% tax base on TIF is higher than other cities and the affordable
housing trust fund seems healthy as it is. She stated that with inflation increases and insurance
escalation for homeowners, it is time to do the maximum this year.
Council Member Rog asked if the legislation around pooling TIF is continued, what the city may
stand to lose by any decisions this evening. Ms. Barton stated that if the council chooses to
decertify the four TIF districts for which the city receives special legislation, and then the city
goes to the legislature this session requesting to extend the special legislation, the legislature
may not look favorably on the city for decertifying these districts when they could have
captured additional funds. Ms. Barton added that anytime a TIF district is decertified, the
option to pool dollars is gone.
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Council Member Rog asked if the city is receiving $1 million per year through Local and
Statewide Affordable Housing Aid (LAHA) for housing. Ms. Barton stated the city is receiving
approximately $860,000 per year.
Council Member Rog asked if the city’s matching funds from the state would be impacted by an
adjustment to the HRA levy. Ms. Cruver stated the city has not received the final form from the
state and noted that the city will need to certify the last two years of expenditures. However,
the city does not need to send the state any information about revenues, though the city does
need to explain if there is a reduction in expenditures.
Council Member Dumalag asked about pooled TIF being a statewide process and how those
efforts are developing. Ms. Barton stated staff is tracking this and supporting the statewide
effort for pooled TIF for affordable housing, adding that statewide TIF is also a legislative
priority for the League of Minnesota Cities. Ms. Barton noted that if TIF does become
statewide, it would benefit the city. If it does not pass, the city could still pursue special
legislation to continue the TIF pooling for affordable housing.
Council Member Brausen stated he supports option #1, which would provide some tax relief.
Council Member Brausen added that this would be the city’s last chance to maximize the
affordable housing trust fund, which is a tremendous asset and gives the city flexibility to
support programs the city cares about. Council Member Brausen added that if it is not used
next year, it will not be available the year after, noting he would like to stay on course, even
though he would like to see more tax relief.
Council Member Rog stated she is in favor of option #3, the balanced approach. Council
Member Rog stated that residents always ask her why the city does not see tax relief from all
the developments being built. Council Member Rog stated there is an opportunity to provide
tax relief, and it is time to do so. Council Member Rog stated she sees the difference in the
amount in the affordable housing trust fund of about $1 million, and other opportunities for
that revenue.
Council Member Farris stated she is in favor of option #3 as well. Council Member Farris noted
she has had many conversations with residents, adding that the developments being built in
the city are not affordable for those in St. Louis Park who are struggling.
Council Member Dumalag stated she is also in favor of option #3 because she wants to offer
relief to residents who see their neighborhoods changing and mitigate any future risks for those
who are renting and struggling. Council Member Dumalag added that she sees option #3 as a
nice balance of both.
Mayor pro tem Baudhuin clarified that the property tax savings would not really be a savings
because taxes will be going up anyway, they would just increase a little less. Ms. Cruver stated
that is correct.
Mayor pro tem Baudhuin stated affordable housing is the number one item he has heard about
from residents, and for this reason, he wants to invest in affordable housing as much as
possible, adding he will support option #1.
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Council Member Brausen stated he is also comfortable with option #3 if the majority of the
council is leaning in that direction. He is concerned that residents will be able to take advantage
of the state’s tax relief programs if their percentage is close to - but does not reach - the
threshold.
Mayor pro tem Baudhuin added he will support option #3 as well.
Ms. Cruver stated that staff will prepare resolutions decertifying districts based on the council’s
feedback and prepare them for action at a future regular meeting, ensuring that TIF
decertifications will have an impact on property taxes payable in 2026.
Council Member Rog noted the city has spent a lot on affordable housing and continues to
invest more than other communities do, adding that this is something to think about.
It was the consensus of the council to support option #3, capturing an additional $3.1 million in
net tax capacity and transferring $1.4 million into the affordable housing trust fund.
It was the consensus of the council to also support the policy questions as presented.
3. TIF and other financial tools and incentives discussion
Mr. Arsvold and Ms. Kvilvang presented a broad overview of tax increment financing (TIF) and
other forms of financial assistance and their uses. A summary of these financial assistance tools
was provided in the staff report.
The presentation explained the application of financial assistance tools to facilitate desired
redevelopment projects and further the city’s strategic priorities, which affect the city’s total
tax capacity, and are reflected in the city’s annual budget and long-range financial plan during
and after the term of the TIF district. Financial assistance tools also play a significant role in the
retention of the city’s AAA bond rating.
Council Member Rog asked if the council is aware of the various tools available related to public
financing of development projects.
Council Member Dumalag stated that TIF and the affordable housing trust fund were both
discussed, noting that this strategy is interesting. She asked how these strategies work with TIF
versus the affordable housing trust fund.
Ms. Kvilvang stated the city has been using TIF as needed for most developments but stated the
affordable housing trust fund has helped to provide bigger units within developments with
more bedrooms and more deeply affordable units to meet a different demand, as well as match
resources to the needs of the community.
Ms. Barton pointed to Teraza as an example of using the affordable housing trust fund to
include 30% Area Median Income units and exceeding the inclusionary housing policy of the city
to achieve the goals of the council. Ms. Barton noted that the existing building has been torn
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down, and the developer is proposing some changes. Ms. Barton added that any significant
changes will come back to the council as an amendment.
Council Member Rog stated the 4D program may also require more scrutiny. Ms. Barton stated
the city gives grant dollars to do rehabilitation on buildings and rents must be maintained on
these projects.
Council Member Rog stated that 60% of the area median income is still challenging and this
housing is not affordable for many folks. Ms. Barton stated the 4D program has been significant
in preserving many affordable units in St. Louis Park.
The meeting adjourned at 9:16 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Nadia Mohamed, mayor
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