Loading...
HomeMy WebLinkAbout2026/03/09 - ADMIN - Minutes - City Council - Study SessionOfficial minutes Study session meeting St. Louis Park, Minnesota March 9, 2026 The meeting convened at 6:02 p.m. Council Members present: Mayor Nadia Mohamed, Daniel Bashore, Jim Engelking, Tim Brausen, Paul Baudhuin Council Members absent: Sue Budd, Yolanda Farris Staff present: city manager (Ms. Keller), community development director and interim building and energy director (Ms. Barton), public works director (Mr. Hall), engineering director (Ms. Heiser), redevelopment administrator (Mr. Porter-Nelson), planning and economic development manager (Ms. Monson), deputy engineering director (Mr. Sullivan), deputy community development director (Mr. Walther), parks and recreation director (Mr. West) Guests: Becky Bakken, president and CEO of Westopolis; Julia Spencer, Greater Metropolitan Housing Corporation (GMHC); Brenda Lano-Wolke, Homes Within Reach; Cathy Capone Bennett, Community Consulting; Chelsea Moore Ritchie, Short Elliot Hendrickson, Inc. Discussion items 1. Westopolis annual update Ms. Bakken presented the organization's annual update to the city council. She explained that Westopolis operates under Minnesota state statute as a nonprofit 501(c)(6) organization funded by lodging tax to market and promote St. Louis Park and Golden Valley as tourism destinations. Ms. Bakken reported that tourism in Minnesota generated $16.8 billion in visitor spending in 2024, contributing $2.4 billion in state and local taxes and supporting over 182,000 jobs. She noted that visitor spending saved each Minnesota household more than $1,000 in taxes that would otherwise need to be collected locally. The Westopolis market consists of nine hotels along the I-394 corridor, with seven in St. Louis Park and two in Golden Valley. In 2025, hotel guests generated more than $98 million in visitor spending throughout the communities. Ms. Bakken reported that 10% of all spending in St. Louis Park and Golden Valley came from visitors, with 71% of visitors coming from out of state. Ms. Bakken presented lodging tax data showing recovery from the pandemic, with 2025 collections at $1.265 million compared to the 2019 peak of $1.268 million. She explained that corporate meeting and event business has not fully returned to pre-pandemic levels due to companies doing fewer meetings, sending fewer people, and dealing with increased costs and market volatility. The organization's 2025 sales summary showed leads up 8% and room nights up 74% over 2024. Reunion and wedding leads increased 12%, while third-party leads showed a 29% increase in awarded leads despite lower overall lead counts. Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22 Study session minutes - 2 - March 9, 2026 Mayor Mohamed asked about the January 2024 occupancy dip shown in the charts. Ms. Bakken explained this was typical first-quarter seasonal decline when people travel less in January both nationally and to their market specifically. Council Member Baudhuin asked whether Westopolis could track visitors staying locally for downtown Minneapolis events. Ms. Bakken confirmed they can track primary and secondary locations, noting that major events at US Bank Stadium and Twins games consistently fill their hotels. Mayor Mohamed inquired about the impact of ICE operations that occurred during January. Ms. Bakken reported their best January in three years, partly due to groups moving out from downtown Minneapolis. However, she noted that while hotels benefited from occupancy, the broader community did not see the typical economic benefits as visitors were not engaging with local restaurants and attractions. Ms. Keller added that hoteliers experienced significant stress during this period, with staff safety concerns and hotels becoming focal points within the community. Council Member Brausen asked about visitor spending data, noting that visitors from La Crosse and Eau Claire, Wisconsin spent $116 per person while Minneapolis visitors spent only $51. Ms. Bakken explained that out-of-state visitors typically stay overnight and spend more, while Minneapolis visitors are usually day visitors who spend less but still contribute to the local economy. Council Member Baudhuin asked about leveraging Theodore Wirth Park more effectively, particularly following the successful World Cup cross-country skiing event in 2024. Ms. Bakken acknowledged ongoing efforts and noted that FIS has expressed interest in returning, though Theo Wirth faces challenges as a small operation relying heavily on volunteers and being managed by Minneapolis Parks. 2. Application for financial assistance for Minnetonka Boulevard Twin Homes – Ward 1 Mr. Porter-Nelson presented the staff report on the application for financial assistance for the Minnetonka Boulevard Twin Homes project located at 5639 to 5707 Minnetonka Boulevard. Mr. Porter-Nelson and Ms. Monson introduced Ms. Spencer, Ms. Lano-Wolke and Ms. Capone Bennett. Mr. Porter-Nelson explained that the project involves four parcels currently owned by the city, formerly owned by the Economic Development Authority (EDA) until recently transferred. The parcels previously contained substandard single-family homes that were demolished. The redevelopment timeline began in 2018 with EDA purchasing the substandard homes, followed by a preliminary development agreement with GMHC in 2021, demolition in 2022 and receipt of a $3 million congressionally directed spending grant in 2023. Council Member Engelking asked about a sliver of land between parcels. Ms. Spencer explained it belongs to Colonial Apartments to the east and provides required street frontage access for their parking lot, though actual access comes through an alley. Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22 Study session minutes - 3 - March 9, 2026 Council Member Engelking inquired about environmental remediation responsibilities. Ms. Capone Bennett confirmed that most contamination was found on the eastern portion of the site, with Colonial Apartments having been tested and found to have less contamination on their strip. Ms. Spencer described GMHC as a nonprofit housing developer with over 55 years of experience supporting affordable homeownership goals. The organization has a strong record of selling to BIPOC buyers and first-time homebuyers while building sustainable, energy- efficient homes. Ms. Lano-Wolke explained that Homes Within Reach serves as the community land trust for St. Louis Park, having helped over 300 households achieve homeownership at an average of 58% Area Median Income (AMI). The land trust model retains ownership of the land while selling the structure to families, creating lasting affordability while enabling equity building. The organization currently has 27 homes in St. Louis Park's land trust model with three under rehabilitation. The project consists of four twin homes totaling eight units with three or four bedrooms and 795-1,000 square feet each. Ms. Spencer noted the homes will have permanent affordability under the Homes Within Reach Land Trust and will be built to Department of Energy Zero Energy Ready standards with solar readiness, Minnesota Green Community Standards compliance, and Energy Star certification. Ms. Capone Bennett outlined challenging site conditions including varied topography requiring grading and retaining walls, alley reconstruction, and extensive environmental remediation. She reported that phase 1 and phase 2 environmental assessments found extensive fill material of unknown origin including incinerated waste, cinders, slag, broken glass and metal debris. The Minnesota Pollution Control Agency approved a response action plan for residential cleanup standards. Council Member Brausen asked about remediation costs. Mr. Porter-Nelson confirmed approximately $870,000 in total cleanup costs covered by Hennepin County and Metropolitan Council grants. Mr. Porter-Nelson noted strong policy alignment with the city's inclusionary housing policy since all homes will be marketed to buyers at or below 80% AMI. The project also aligns with green building policies through Zero Energy Ready standards and other efficiency features. The location provides good transit access near the new bike and walking path on Minnetonka Boulevard and proximity to the Beltline Park and Ride. The funding stack includes cleanup grants, a $1 million Hennepin County Accelerator loan expiring at year-end, $3 million in HUD congressionally directed funds, Minnesota Housing Impact funds, a private construction loan to be repaid through home sales, and the requested $400,000 from the affordable housing trust fund. Council Member Brausen confirmed that the congressionally directed funding was specifically designated for this project by the city council in summer 2025. Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22 Study session minutes - 4 - March 9, 2026 Mayor Mohamed expressed strong personal support for the project, praising the team's work in securing funding sources and emphasizing the importance of providing affordable homeownership opportunities with green building features for lower-income communities. Council Member Brausen supported all policy questions, noting that the subsidy seemed reasonable for affordable homeownership units and aligned with the increased affordable housing trust fund budget. Council Member Baudhuin also supported the project, appreciating the collaboration to find additional funding sources and noting this was the first request for actual city funds despite the project's long timeline. Council Member Baudhuin asked about coordination with Spirit of Christ Lutheran Church regarding their adjacent land. Ms. Spencer confirmed preliminary conversations had begun with the church about their future options, though timing did not align with the current development. Ms. Monson noted earlier discussions about potential access sharing which had not been feasible due to steep grades on the west side of the site. Council Member Engelking asked about the equity development process in the land trust model. Ms. Lano-Wolke explained that the ground lease requires resale to families at 80% AMI or below, with Homes Within Reach maintaining first right of refusal. The resale formula provides homeowners with mortgage paydown amounts, any forgivable down payment assistance received, and 35% of property value increases. Homeowners also qualify for property tax reductions of about 25% through the 4d(2) classification if they remain in good standing. Council Member Engelking asked about a homeowner’s association (HOA) structure. Ms. Lano- Wolke confirmed separate lots with shared party wall agreements and a master agreement for snow removal and garbage service rather than a traditional HOA, allowing individual lawn maintenance responsibility. Council Member Brausen asked about financing options. Ms. Lano-Wolke explained buyers must meet higher standards than open market purchases, including minimum 640 credit scores, $1,000 of their own money, and $2,000 in reserve funds. The organization works with about a dozen approved conventional mortgage lenders, some offering housing-specific products and partnerships with Habitat for Humanity Lending for additional down payment assistance. Mr. Porter-Nelson outlined next steps, including the review of purchase and redevelopment business terms in April 2026, contract approval consideration in May 2026, and a June 2026 construction start to complete homes before 2027 Minnetonka Boulevard reconstruction. 3. Safe Streets Action Plan overview Mr. Sullivan presented the staff report on the Safe Streets Action Plan overview and introduced Ms. Moore. Mr. Sullivan explained the plan provides a data-driven framework to guide future Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22 Study session minutes - 5 - March 9, 2026 safety investments supporting the goal of eliminating fatal and severe crashes by 2050, though recognizing this aspirational goal endorsed by national transportation agencies would not eliminate all crashes but focus on the most severe incidents. Ms. Moore Ritchie outlined the 18-month development process beginning with data collection in summer and fall 2024, examining crash locations, high-risk infrastructure, equity considerations including proximity to affordable housing and transit, and community-identified safety concerns. The process included citywide engagement reaching over 600 participants who provided feedback on safety concerns and project prioritization. The team worked with technical advisory and stakeholder committees through winter and spring 2025 to develop a prioritization methodology ranking every city block. This created a heat map identifying high-priority locations and developing two-part recommendations: location identification for future projects and strategies addressing the safe system approach. Key engagement themes included traffic management and speed control, pedestrian and bicycle safety at intersections, and positive feedback on the city's multimodal infrastructure investments. Comments were received across all neighborhoods rather than concentrated in specific areas. Ms. Moore Ritchie explained the safe system approach addresses five elements: safe infrastructure, safe drivers/users, safe vehicles, safer post-crash care, and safer speeds. The team reviewed crash data, precedent plans from other jurisdictions, and collaborated with technical and stakeholder groups to develop an effort-versus-impact analysis focusing on easy wins and high-impact major projects while avoiding low-impact, high-effort initiatives. This analysis resulted in seven key strategies broken into 18 individual action items: • Infrastructure upgrades • Exploring new technology • Reviewing city policies and practices • Education initiatives • Safe route to school programming • Incentive programs • Additional safety evaluation and research The high injury network represents 7.5% of the road network but accounts for 61% of fatal and severe injury crashes. Ms. Moore Ritchie reported positive progress with over 25% of the high injury network already funded for reconstruction in the next one to four years, and the city having reduced high injury miles by 20% from 2014 to 2023 through substantial reconstruction and safety improvements. Mr. Sullivan noted that many high injury network roads are county and state-owned, requiring partnerships and advocacy. He emphasized ongoing collaboration on projects like Minnetonka Boulevard and excluded limited-access highways like 100 and 169 while including at-grade intersections on Highway 7. He noted that Hennepin County and MnDOT participated as technical advisory committee partners. Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22 Study session minutes - 6 - March 9, 2026 Council Member Brausen asked about crash statistics from the ten-year data period. Mr. Sullivan confirmed approximately 6,000 total crashes with 64 fatal or severe injuries representing about 1%, while property damage crashes totaled nearly 4,500. Ms. Moore Ritchie explained the prioritization methodology weighting system with fatal and severe injury crash history receiving highest weight at 40%, high-risk locations at 30%, equity considerations at 20%, and public feedback at 10%. This created tier classifications with Tier 0 locations having upcoming projects, Tier 1 representing highest-scoring mostly county and state-owned unfunded roadways, and Tier 2 offering mixed ownership with opportunities for quick-build and demonstration projects alongside long-term solutions. The plan identifies 28 priority locations with short, medium and long-term recommendations detailed in Appendix B. Ms. Moore Ritchie noted a 30-day public comment period running through March 23, 2026, coinciding with the next council discussion date. The team plans to develop an evaluation dashboard tracking progress on crash reduction, priority locations, and strategy implementation similar to other city dashboards. Mr. Sullivan outlined the timeline with public comment through March 23, 2026, final plan incorporation of feedback, and a city council vote on the Towards Zero goal and the Safe Streets Action Plan on April 6, 2026. He emphasized the plan's framework value for project prioritization and funding applications, noting original intent to secure federal implementation funding remains viable though potentially through different navigation approaches. Ms. Heiser noted that priority projects align with existing Capital Improvement Plan items, positioning the city well for implementation funding requests. She specifically mentioned seeking assistance for Minnetonka Boulevard Phase 2 and Oxford/Louisiana Avenue projects, with Oxford/Louisiana Avenue showing crash rates almost four times the fatal and severe injury rate. Mayor Mohamed asked whether crashes similar to the tragic incident at Park Tavern in 2025 would fall outside the plan's scope. Ms. Moore Ritchie confirmed the plan focuses primarily on public roadways rather than private property, though action items address incentive programs and requirements for new development to encourage private property safety measures and existing business proactive steps. Council Member Baudhuin praised the engineering department's work and the report's valuable data, particularly highlighting survey responses showing 80% of respondents primarily use cars for transportation while only 25% would prefer cars under ideal conditions. He questioned how to budget and plan accordingly when 75% of residents would prefer not driving cars while most transportation resources support vehicle infrastructure. Mr. Sullivan clarified that upcoming Minnetonka Boulevard discussions would demonstrate this reframing approach, with limited discussion about vehicle lanes but extensive focus on elements outside vehicle lanes including trails, sidewalks, cycle tracks, separation features and crossing accommodations for accessing community amenities. Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22 Study session minutes - 7 - March 9, 2026 Mayor Mohamed supported the plan as providing safe streets representing city governance's most important job. She appreciated the high-effort versus high-impact analysis and the focus on preventing severe and fatal crashes that create lasting community memories, referencing the Highway 7 and Texas Avenue fatality. Council Member Engelking noted survey data showing under 40% of respondents feel safe in most city locations, with higher safety feelings for driving than pedestrian or cycling activities. He acknowledged geographic challenges with limited north-south arterial streets due to rail corridors concentrating traffic on existing routes, making off-trail cycling particularly hazardous. Council Member Baudhuin agreed that north-south connectivity represents a significant problem for both cycling and public transit throughout the community. Council Member Engelking emphasized the importance of incorporating light rail operational data once service begins, noting inevitable safety incidents requiring mitigation planning. Council Member Engelking asked whether the plan had already influenced engineering team design processes. Ms. Heiser credited the Environment Sustainability Commission's 2018-2019 collaboration creating the living streets policy, noting many recommended elements like intersection bump-outs, street width reductions, and traffic circles were already being implemented. She emphasized the plan's value in providing a systems approach to traffic and safety that the community and council had requested, particularly for connected infrastructure system development. Council Member Brausen mentioned constituent requests for speed bumps, including temporary options, despite snow plowing challenges. Ms. Heiser noted the importance of evaluating whether solutions address actual problems or create unintended consequences in neighboring blocks. Written reports 4. Connected infrastructure system kick-off 5. Community + Civic Engagement system wrap-up The meeting adjourned at 8:02 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor These minutes were created with the assistance of a generative AI transcript service, then edited and finalized by a city staff person. Docusign Envelope ID: F2F73E59-882C-4EE4-8812-EE45A0ABFF22