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HomeMy WebLinkAbout2025/12/01 - ADMIN - Minutes - City Council - RegularOfficial minutes City council meeting St. Louis Park, Minnesota Dec. 1, 2025 1. Call to order. Mayor Mohamed called the meeting to order at 6:16 p.m. a. Pledge of allegiance b. Roll call Council members present: Lynette Dumalag, Sue Budd, Tim Brausen, Yolanda Farris, Paul Baudhuin, Mayor Nadia Mohamed Council members absent: Margaret Rog Staff present: City manager (Ms. Keller), deputy city manager (Ms. Walsh), community development director, interim building and energy director (Ms. Barton), administrative services director (Ms. Brodeen), assessor (Mr. Bultema), finance director (Ms. Cruver), legislative and grants analyst (Ms. Ferris), public services superintendent (Ms. Fisher), public works director (Mr. Hall), fire chief (Mr. Hanlin), engineering director (Ms. Heiser), city clerk (Ms. Kennedy), deputy police chief (Mr. Nadem), redevelopment administrator (Mr. Porter- Nelson), deputy city clerk (Ms. Scott-Lerdal), communications and technology director (Ms. Smith), financial analyst (Ms. Stephens), HR director (Ms. Vorpahl), planning manager (Mr. Walther), parks and recreation director (Mr. West), racial equity and inclusion director (Ms. Yang) Mayor Mohamed acknowledged the loss of city employee Yuri Botelho, who suffered a fatal accident on Nov. 26, 2025, while traveling in Peru. Mayor Mohamed asked those present to join her in a moment of silence. She shared that our thoughts are with Mr. Botelho’s family. She added her appreciation for the family’s openness in allowing public acknowledgment of Yuri’s passing. 2. Approve agenda. It was moved by Council Member Dumalag, seconded by Council Member Budd, to approve the agenda as presented. The motion passed 6-0 (Council Member Rog absent). 3. Presentations. a. Recognition of donations Mayor Mohamed recognized the following donations: • Linda Mell - $300 to be used for a memorial tree to be installed in Wolfe Park • Evangeline Lockrem - $300 to be used for a memorial tree to be installed at Westwood Hills Nature Center honoring Jessica Fahey Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -2- Dec. 1, 2025 • Lighthouse Management Group Inc. - $2,800 to be used for a memorial bench to be installed at Westwood Hills Nature Center honoring Monique Yenamandka • Community Charities of Minnesota on behalf of Park Tavern - $1,500 to be used for the U.G.L.Y. Sweater Dash event • American Legion Post 282 - $1,000 to be used for pamphlets at the Westwood Hills Nature Center 44th Annual Halloween Party • Westwood Hills Nature Center visitors $327 to be used for animal care or program needs at Westwood Hills Nature Center via the combined collection of unidentified visitor donations • George and Pat Foulkes - $6,000 to be used for park enhancements or program needs at Westwood Hills Nature Center • H. Ronald Berg - $250 to be used for the 2025 annual holiday Toys for Tots toy donation event Council Member Brausen thanked George and Pat Foulkes for their donation of $6000 for the Westwood Hills Nature Center program needs. He noted that for years, Mr. Foulkes served on the parks and recreation advisory commission. Council Member Brausen added that Mr. Foulkes has a passion for the Nature Center and walks there every day. Council Member Brausen and Mayor Mohamed thanked all those who donated to the city for uses that they care about and believe in; the city is blessed to have these donors. 4. Minutes. a. Special study session meeting minutes of Oct. 20, 2025 b. City council meeting minutes of Nov. 3, 2025 c. Special study session meeting minutes of Nov. 3, 2025 d. Special city council meeting minutes of Nov. 10, 2025 It was moved by Council Member Brausen, seconded by Council Member Dumalag, to approve the minutes of the special study sessions on Oct. 20 and Nov. 3, 2025; the special study session on Nov. 3, 2025; the special city council meeting on Nov. 10, 2025, as presented. The motion passed 6-0 (Council Member Rog absent). 5. Consent items. a. Approve city disbursements b. Resolution No. 25-152 accepting donations to the parks and recreation department c. Resolution No. 25-153 accepting donations to the police department d. Resolution No. 25-154 approving conveyance of EDA-owned land to the city e. Approve amendments to Inclusionary Housing policy f. Resolution No. 25-155 authorizing special assessment for sewer service line repair at 1614 Dakota Avenue South - Ward 4 g. Resolution No. 25-156 authorizing special assessment for sewer service line repair at 4079 Colorado Avenue South - Ward 2 Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -3- Dec. 1, 2025 h. Resolution No. 25-157 authorizing special assessment for sewer service line repair at 4512 42nd Street West - Ward 2 Council Member Brausen commented on consent item 5a, noting there are over $5 million in city disbursements for the period of Oct. 23 to Nov. 23, 2025. He stated the detail in the summary is excellent. He pointed out two disbursements for amounts of less than $1.00 each, adding that this detail is impressive and he thanked staff for their work. Regarding consent item 5d, Council Member Brausen noted there are more than 20 parcels of EDA land that are now being transferred over to the city. Some parcels are valuable and others have nominal value. The EDA is doing a good job of handling this transfer properly and under the law. Council Member Brausen commented on consent item 5e for amendments to the inclusionary housing policy. He shared that they are reviewed annually, along with all other city policies. The city council had a robust discussion on these policies and made some amendments and improvements. He is happy to see the amendments to the inclusionary housing policy now being adopted and in full force in 2026. Council Member Budd stated that one of the enhancements made to the inclusionary housing policy includes averaging, which loosens restrictions and allows for more flexibility. This change can make an enormous difference for those who need affordable housing. It was moved by Council Member Brausen, seconded by Council Member Baudhuin, to approve the consent items as listed; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Council Member Rog absent). 6. Public hearings. a. Public hearing for Truth in Taxation Ms. Cruver presented the staff report. She noted the budget timeline and the overall proposed levy. In September 2025, the city council’s direction included authorizing an additional $50,000 in 2026 funds to supplement the city’s Climate Investment Fund. The council adopted a 2026 maximum levy of 8.02% with the caveat that city staff work to decrease that number by final levy adoption; to work to reduce the impact on residential property taxpayers. Ms. Cruver stated the city council also directed staff to decertify four TIF districts and hold three eligible districts open in 2026. The decision would result in additional one-time funds for general use, one-time funds for the Affordable Housing Trust Fund, and a permanent increase in the city’s tax capacity. Ms. Cruver stated after analysis, staff was able to lower the general fund levy increase from 8.02% to 7.49%. The overall property tax increase for median valued homes will be less than Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -4- Dec. 1, 2025 7.2%. Residents and property taxpayers will see a total tax bill that is lower than the mailed Truth in Taxation notices had previously indicated. Ms. Cruver stated that staff recommends a steady tax that does not push large tax increases out into the near future. There is also information on the city’s website for residents who need tax assistance. Council Member Baudhuin noted the amount of $50,000 needed for the climate investment fund. He asked if the funding is needed because of federal funding losses. Ms. Cruver stated no and added that there are federal subsidies for individuals that are being phased out, but no direct federal funding for the city is ending. Council Member Brausen noted the brush management site bid. When the site’s management was opened for contract bids, the proposed totals were so high that the city opted not to offer the contract any longer. Instead, the brush management site will be run by the city. Council Member Brausen stated that the concessions stands at the Recreation Center will be self-sustaining and have a zero-net expenditure for the city. Ms. Cruver stated that it is correct. Council Member Brausen noted that funding for the climate investment fund will be fully funded because nationwide support does not match the urgency of the situation. The city will do what it can on the local level, including offering incentive programs for residents. Council Member Budd asked for clarification on the EDA and HRA levies and whether they were not changed because Local Affordable Housing Aid (LAHA) is not at risk. Ms. Cruver confirmed that the spending level is being maintained on affordable housing. Council Member Budd asked if decreasing the HRA levy by $500,000 in 2026 would result in a percentage point reduction. Ms. Cruver stated that with a reduction in the increase of the tax levy, that would be correct. Council Member Budd asked if one-half of the city’s property taxpayers will fall between a 5% and 10% increase. Ms. Cruver stated that for the overall tax increase - including the school district and using preliminary data - 50% of property taxpayers would see and increase between 5% and 10%. She pointed out that the percentage will shift down because of tax capacity work and lowering the levy. Mayor Mohamed opened the public hearing. Jake Werner, 2148 Glenhurst Road, stated that he is opposed to the proposed tax levy due to the degree and frequency of the levies. Mr. Werner stated the city has been talking about affordable housing for many years but he feels that taxes make housing less affordable each year. As a senior on a fixed income, he noted that his taxes have increased by 37.48% increase over the past five years. His pension increased 6.8% over the last five years and this is unsustainable for him. Mr. Werner noted this year’s increase is due to commercial properties losing value and asked what the reason was for increases in past years. Mr. Werner added that tax increases would be more palatable if it seemed that our city was improving our lives, but it Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -5- Dec. 1, 2025 does not feel that way for him. As a 32-year resident of St. Louis Park, he does not feel that the city has become a more walkable, bikeable, tree-lined city – it has become the opposite. Since 2015, St. Louis Park has added 3000 apartment units. Many are built next to highways, which he described as undesirable places to live. Mr. Werner observed that the city streets are becoming crowded with cars and he believes St. Louis Park is the most car-centric city in the area, particularly on high-traffic streets with increased speeds. Kimberly Wick, 7605 West 14th Street, stated she is happy that the city council is discussing debt reduction. However, she expressed her disappointment in the proposed tax levy increases. Taxes continue to increase and this is becoming unsustainable for many residents. Increases feels out of touch with many or most residents and noted many of her neighbors agree with her. She understands the pressures, but the city has to be more aggressive in working to operate more efficiently, just as corporations and non-profits do. Ms. Wick added that the increases are proposed in order to maintain service levels or for new investments. She asked the council to make tough decisions to assist taxpayers. Evan Atler, 2401 Flag Avenue, stated his taxes have gone up 50% since 2021, which is over $2000. He noted housing values have gone up, but he urged the council to find other ways to reduce the burden. He agrees with affordable housing, but noted that for himself as a homeowner, the burden of tax increases are becoming unaffordable. James Kilwowski, 3144 Georgia Avenue South, stated he has lived in St. Louis Park for 16 years. Every year the tax levy goes up and it adds up over time. For a young family moving here this is unsustainable. He likes the city’s schools, but when a residents’ taxes grow to an amount greater than their mortgage, he described it as “insane”. He asked whether the council has considered taxing other items such as gas and clothing. He asked the council to think “outside of the box” because disposable income shrinks every year. Mayor Mohamed closed the public hearing. Council Member Budd proposed that at the city council meeting on Dec. 15, 2025, the HRA levy be reviewed and reduced by $500,000 in the interest of decreasing the levy by 1%. Council Member Budd stated that the increases are not sustainable. She has heard this from many residents and she would like to further discuss the levies. Ms. Cruver stated that after this public hearing, budget resolutions will be drafted in preparation for the meeting on Dec. 15, 2025. Staff requires direction on the levy amount for the council to vote on. Mayor Mohamed stated a reduction in the tax for the EDA and HRA had not been discussed by the council prior to this conversation. She expressed concern for the short time available for full and informed consideration. Council Member Baudhuin agreed with Council Member Budd. He stated that after the public hearing tonight, he believes the council owes the residents a closer look at the HRA levy and give it fair hearing. He is in favor of reviewing Council Member Budd’s proposal on Dec. 15, 2025. Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -6-Dec. 1, 2025 Council Member Brausen agreed, adding the proposal would be for the council to look at this $500,000 reduction during their vote on Dec. 15, 2025. Council Member Dumalag stated the council would need to have this information in full in order to prepare for discussion. She asked if this proposal would be drafted as one resolution or as a choice between two resolution drafts on Dec. 15, 2025. Mayor Mohamed stated she prefers a choice between two drafted resolutions during the planned discussion on the trade-offs relating to the fund balance and flexibility for future housing projects. Council Member Dumalag stated that decertifying Tax Increment Finance districts should be reflected in what residents pay to the county and the school district. Council Member Baudhuin thanked the residents who spoke during the public hearing. He stated that the council is listening and is aware that increases seem to come back year after year. He shared that the city council continues to wrestle with this trend. Council Member Baudhuin observed that the nation is undergoing a difficult time with federal program cuts impacting all areas. The council is doing their best to make decisions that will ensure the ability to offer city services while keeping tax levies as low as possible. Ms. Keller stated staff will prepare draft resolutions for the city council meeting on Dec. 15, 2025, to amend the final levy to 6.49%, which is 1% lower than the preliminary levy. Council Member Budd stated she would prefer that staff make a reduction of $500,000, as it is a clear number. No formal action is required of the city council this evening. At the city council meeting on Dec. 15, 2025, the city council will vote on the final 2026 budget and levies. b. Public hearing for Intoxicating liquor license for Rosalia LLC dba Rosalia Texa-Tonka Ms. Scott-Lerdal presented the staff report. Rosalia LLC dba Rosalia Texa-Tonka for an on-sale intoxicating liquor license with Sunday sales for the premises located at 8028 Minnetonka Boulevard. Rosalia has sister locations in the Northeast and the Linden Hills areas in Minneapolis. The premises will consist of approximately 4,360 square feet with a total seating capacity of 147. The restaurant is planned to be a full- service pizza and pasta restaurant. The owners are Daniel Jorge del Prado (who will also serve as on-site manager), Wardwell Johnson and Edward Landenberger. The application meets all requirements. Council Member Brausen asked if Rosalia is planned for the location formerly occupied by Revival at the Texa-Tonka mall. Ms. Scott-Lerdal stated yes. Mayor Mohamed opened the public hearing. No speakers were present. Mayor Mohamed closed the public hearing. Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -7- Dec. 1, 2025 It was moved by Council Member Budd, seconded by Council Member Baudhuin, to approve the intoxicating liquor license for Rosalia LLC dba Rosalia Texa-Tonka. The motion passed 6-0 (Council Member Rog absent). c. Resolutions No. 25-158 and 25-159 approving issuance of multifamily housing bonds and approval of related documents for the Beltline Station development – Ward 1 Mr. Porter-Nelson presented the staff report. The staff report stated that Sherman Associates requests approval of two city council resolutions and one Economic Development Authority (EDA) resolution related to an upcoming financial closing on the 82-unit affordable housing building within the larger 380-unit Beltline Station mixed-use development. First, Sherman Associates requests that the city issue multifamily housing conduit bonds as allocated by Minnesota Management and Budget (MMB) in July of 2025 to finance the construction of an 82-unit project at 3120 Monterey Dr. including 39 units affordable at 60% of Area Median Income (AMI), 23 units affordable at 50% AMI and 20 units affordable at 30% AMI. Second, they request approval of the resolutions approving amendments to the redevelopment agreement, a subordination agreement and related documents. Issuance of these bonds will not impact the city’s debt capacity, will not constitute a general or moral obligation of the city, and will not be secured by the taxing powers of the city or any assets or property of the city. The redeveloper will pay an administration fee of 1% of the outstanding principal of the bonds at the time of the closing. The other amendments focus on meeting lender requirements and do not alter the major terms of the affordable housing agreements as approved on May 19, 2025, and June 16, 2025. Council Member Dumalag asked if this project would come at a cost to the city. Mr. Porter- Nelson stated there are no costs associated with this project. Council Member Farris asked when the project will be completed. Mr. Porter-Nelson stated that financing will close at the end of this year and construction will start in 2026 and be completed by the middle of 2027. Mayor Mohamed opened the public hearing. No speakers were present. Mayor Mohamed closed the public hearing. Council Member Brausen stated there are no actual costs to the city on the bond financing project, adding the city will make a 1% profit on administrative costs, which will be about $145,000. The project facilitates the city’s long-range plans for affordable housing at the light rail site and he supports it. It was moved by Council Member Brausen, seconded by Council Member Farris, to approve the issuance of multifamily housing bonds and approval of related documents for the Beltline Station development – Ward 1 as presented. Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C City council meeting -8- Dec. 1, 2025 The motion passed 6-0 (Council Member Rog absent). It was moved by Council Member Brausen, seconded by Council Member Budd, to approve the resolution amending the redevelopment agreement, including applicable subordination agreements and related documents. The motion passed 6-0 (Council Member Rog absent). 7. Regular business – none. 8. Communications and announcements – none. 9. Adjournment. The meeting adjourned at 7:28 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Docusign Envelope ID: 7386BB07-95B4-4C7D-9D3A-B4D6ED9EC43C