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HomeMy WebLinkAbout2026/04/27 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA APRIL 27, 2026 6:00 p.m. 2026 St. Louis Park Local Board of Appeal and Equalization – Community Room Action item 1. Reconvene the St. Louis Park Local Board of Appeal and Equalization Following LBAE meeting - Study session – Community Room Discussion item 1. Canadian Pacific Kansas City Railroad safety study Written report 2. Development update Q2 2026 Members of the public can attend St. Louis Park Economic Development Authority and city council meetings in person. At regular city council meetings, members of the public may comment on any item on the agenda by attending the meeting in-person or by submitting written comments to info@stlouisparkmn.gov by noon the day of the meeting. Official minutes of meetings are available on the city website once approved. Watch St. Louis Park Economic Development Authority or regular city council meetings live at bit.ly/watchslpcouncil or at www.parktv.org, or on local cable (Comcast SD channel 14/HD channel 798). Recordings of the meetings are available to watch on the city's YouTube channel at www.youtube.com/@slpcable, usually within 24 hours of the meeting’s end. City council study sessions are not broadcast. Generally, it is not council practice to receive public comment during study sessions. The council chambers are equipped with Hearing Loop equipment and headsets are available to borrow. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Local Board of Appeal and Equalization Meeting date: April 27, 2026 Action agenda item: 1 2026 Local Board of Appeal and Equalization Reconvene – April 27, 2026 PROPOSED AGENDA 1. Reconvene the St. Louis Park Local Board of Appeal and Equalization 2. Roll Call – Declaration of Quorum 3. Acknowledgement of Trained Members (Nadia Mohamed & Sue Budd) 4. Review of Properties in Appeal A. Board Action – Not resolved, to be heard by the Local Board B. Board Action – To be sustained, referral to the County Board C. Board Action – To be sustained, (inspection refusal, non-response or withdrawal) D. Board Action - Appellant & Assessing Staff are in Mutual Agreement For appeals in groups a-b-c, it is suggested that the board review each parcel individually, discuss as you will and make individual board rulings. For the mutual agreement category, each parcel should be read into the record, and the board may take one group action per DOR direction (April 2016). 5. Instruct Assessor to Complete Record of Changes for Submittal 6. Instruct Assessor to Inform Appellants of Board Action via Mail 7. Complete the Local Board of Appeal and Equalization Certification Form 8. Adjourn if Board business is completed Reconvene Meeting of April 27, 2026 (Item No. 1) Page 2 Title: 2026 Local Board of Appeal and Equalization BACKGROUND for the 2026 St. Louis Park Local Board of Appeal and Equalization All property owners are entitled to the right of appeal regarding their classification and market value. The city is required by statute to conduct a Local Board of Appeal & Equalization meeting to hear appeals or conduct an open book meeting. Owner options also include the County Board of Appeal & Equalization and ultimately the Minnesota State Tax Court. The focus for the board is: the property classification which is determined by use; and the market value which is based on the characteristics of the real estate and market conditions as of the date of the assessment (January 2, 2026). Minnesota statute requires all properties to be assessed at full market value, fee simple. The dominant definitions of market value are: MN Statute 272.03 – “Market value” means the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or an auction sale, if it is determined by the assessor that the price from the auction sale represents an arm’s length transaction. The price obtained at a forced sale shall not be considered. Appraisal Institute – The most probable price, as of a specified date, in cash or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. (The Appraisal of Real Estate, 13th Edition, Appraisal Institute [2008], page 23) The Board convened on April 13, 2026, at which meeting a total of thirteen (13) parcels were recognized to be under appeal. The Board set the process and scheduled the reconvene meeting as April 27, 2026, to review the merit of each case. A few housekeeping observations are made for the reference of the board. • One trained and certified Board member (Mohamed and/or Budd) must be present at each meeting the Board is in session. Best practice is for multiple trained members. • Timeline of the assessment: All valuations are set as of January 2, 2026, relative to market activity in the preceding year. Value influences due to changing conditions have been reviewed from the perspective of market reactions in setting the assessment. • The time window for the board to conclude business is 20 days after convening. • It is essential that the Board rules on each question before it and likewise that the Board recognizes that it can reduce, sustain, or increase valuations as deemed necessary. Reconvene Meeting of April 27, 2026 (Item No. 1) Page 3 Title: 2026 Local Board of Appeal and Equalization • Important – DOR directive: “It is the board’s responsibility to hear all appeals presented until the board adjourns. A property owner can present their appeal at the initial meeting or at any of the reconvene meetings. The board must hear that appeal and make a decision. The board cannot dismiss the property owner’s appeal, unless the meeting is adjourned.” Assessing offices and the respective boards of appeal throughout the state are therefore requested to accept appeals until final adjournment. • At the writing of this Board packet, additional inquiries and appeals are incoming and staff are endeavoring to respond in a timely fashion. All appeals incoming up to reconvene will be added to the roster. • Prior to adjourning, the board should instruct the assessor to submit a record of their actions on the Department of Revenue required form. • Finally, the Local Board of Appeal Certification Form must be signed at each meeting by all Board members present. Background to Valuation Methodologies: The modeling associated with the mass assessment accommodates variations between neighborhoods, within neighborhoods and includes consideration of location, age, style, size, finish materials, condition, updating, etc. depending on the information available. Inspection, records update, valuation reviews and administrative change orders have been made where necessary during the informal review process prior to the Board. The Board process differs from mass valuation modeling in that the assessing staff re-appraises the subject property individually by direct comparison to market transactions. As part of the review process, staff re-inspect each property to review the accuracy of attributes and especially current condition which is a highly important variable. Next steps are staff engaging the property owner in a candid conversation of the assessed value, local transactions and how the transactions provide a fact-based market indication of the subject property value. If staff conclude a reduction is warranted, this is disclosed to the owner in talking out the questions to mutually resolve the valuation question. Likewise, if staff conclude the assessed value is at market or slightly below, we inform the owner and discuss the market information. In cases where staff revaluation does not result in a conclusion satisfactory to the appellant, the board process is outlined. Additional questions are very common for those owners who desire to appear before the Board. As such, the Local Board depends on active participation from all parties involved including the property owner, assessing staff and the board members. All property owners are requested to state their basis of appeal, their opinion of the market value and informed that they may present information in written form and by testimony supporting their opinion of value and/or classification. Reconvene Meeting of April 27, 2026 (Item No. 1) Page 4 Title: 2026 Local Board of Appeal and Equalization Focal Points for the Board – Agenda as Indicated on Cover Sheet, decisions on: A. Board Action – Appeals to be heard by the board. As this packet is being prepared, there are new and open cases in this category. Status is dictated by timing for inspection, file work-up and discussion with the appellant. When there is dispute regarding the valuation or classification, it is requested that the Board hear and decide the merits of the case. We inform the owner that the Board allows five to ten minutes for their presentation followed by a three to five-minute presentation by the assessing staff. The Board may adjust these time allowances as needed. B. Board Action – Appeals moving to County Board. These are commonly a mixture of scheduling difficulty and timeline to arrange the inspection/re-valuation work-up. In these instances, it is important to recognize the appeal and preserve their right and eligibility to move onward to the County Board. C. Board Action – Inspection refusal, non-responsive or withdrawal. These are cases where an appeal has been activated and subsequent communications have not succeeded. The Board is reminded that some cases end up in this category almost every year. D. Board Action – Resolved, board approval. These are cases where staff and the appellant have engaged in revaluation review and talked the question out to mutual agreement. It is requested that staff read each parcel action into the meeting record, after which the Board may take one action to affirm the mutual agreements. As noted previously, the Minnesota Department of Revenue has directed boards to accept appeals made after the convene meeting (mailed notification, published and posted per legal requirements). The late additions are highlighted in yellow on the reconvene roster. Should there be additional appeals in the time between this board packet and the date of reconvene, we will be requesting their addition to the roster with proviso that we may not have completed the review due to time constraints. Following your decisions, each property owner will be notified via letter of the Board action and to remind them that they are eligible to appeal to the County Board. The County Board of Appeal and Equalization is scheduled for June 15, 2026. An application is requested by the County no later than May 20, 2026. To appear before the County Board, all appellants must first have appealed to the St. Louis Park Board of Appeal and Equalization. Property owners may also appeal directly to the Minnesota State Tax Court. Thank you for serving on the Board. Reconvene Meeting of April 27, 2026 (Item No. 1) Page 5 Title: 2026 Local Board of Appeal and Equalization Tab Summary Background & Focal Points for the Board Tab 1: Roster of All Appeals for Board Action – At Time of Packet Assembly (the final roster update will be handed out to the Board at the meeting) Reference 2026 Appealed Assessing Owner Board Name Property Address Property ID #2025 Value Classification 2026 Value Revaluation Indicated Action Jeremy Martineau - Sheriff Sale Certificate 2200 Nevada Ave S #208 08-117-21-21-0296 $140,300 X - Condominium $131,700 Pending Appeal Darla Hoffer 3024 Sumter Ave S 17-117-21-22-0023 $363,000 R - Residential $386,400 Pending Appeal Arnik Rodriguez 2804 Colorado Ave S 09-117-21-33-0002 $399,900 R - Residential $406,500 Sustain To County Alexandra Asche & Logan Asche 1424 Maryland Ave S 05-117-21-31-0061 $290,600 R - Residential $338,200 $321,000 Mutually Agreed Kerrie Adams 1841 Pennsylvania Ave S 05-117-21-34-0126 $406,100 R - Residential $456,400 $435,300 Mutually Agreed Luke Halverson & Emma Burmester 4534 Vallacher Ave 07-028-24-12-0058 $488,800 R - Residential $489,000 $443,000 Mutually Agreed Michael Wald & Meghan Wald 3912 Monterey Ave S 07-028-24-12-0092 $872,400 R - Residential $966,000 $900,000 Mutually Agreed Coral Kari & Michael Kari 4270 Ottawa Ave S 07-028-24-31-0141 $586,600 R - Residential $544,300 $490,000 Mutually Agreed Diane Kontar & S Khatri et al 4500 44th St W 07-028-24-34-0020 $668,500 R - Residential $688,600 $649,600 Mutually Agreed William Coughlin & Kerri Coughlin 2728 Edgewood Ave S 08-117-21-41-0144 $398,000 R - Residential $404,600 $375,000 Mutually Agreed Alexandra Asche & Logan Asche 3028 Dakota Ave S 17-117-21-11-0021 $356,700 R - Residential $362,500 $337,000 Mutually Agreed Andrew Dorsey 9017 31st St W 18-117-21-21-0071 $514,000 R - Residential $484,300 $441,400 Mutually Agreed Amy DuChene 9009 Minnehaha Cir S 18-117-21-31-0019 $612,300 R - Residential $587,200 $525,000 Mutually Agreed Shannon Westlund & Daniel Westlund 7833 Cambridge St 20-117-21-22-0136 $465,300 R - Residential $519,900 $517,000 Mutually Agreed James Engelking Jr & Elizabeth Engelking 4157 Brookside Ave 21-117-21-31-0216 $677,200 R - Residential $728,100 Sustain Mutually Agreed David Oman & Tamar Oman 2544 Huntington Ave S 31-029-24-14-0054 $1,399,600 R - Residential $1,370,800 $1,125,000 Mutually Agreed Sidney Usem & Mia Usem 4806 27th St W 31-029-24-31-0014 $672,200 R - Residential $668,800 $625,000 Mutually Agreed Deborah Rosenberg & Darren Charloff 2725 Monterey Ave S 31-029-24-42-0026 $595,400 R - Residential $570,300 $550,000 Mutually Agreed Appeals logged after Convene Meeting Roster - City of St. Louis Park Local Board of Appeal & Equalization - Reconvene April 27, 2026 Reconvene Meeting of April 27, 2026 (Item No. 1) Title: 2026 Local Board of Appeal and Equalization Page 6 Meeting: Study session Meeting date: April 27, 2026 Discussion item: 1 Executive summary Title: Canadian Pacific Kansas City Railroad safety study Recommended action: None currently. The purpose of this study session discussion is to provide council with the findings of the recently completed railroad safety study and discuss next steps. Policy consideration: Does the council support pursuing implementation of the railroad safety study findings in any of the subzones included in the report? Summary: To respond to community concerns about overnight train horn noise along the Canadian Pacific Kansas City (CPKC) rail line, staff and the consulting firm SRF Consulting Group presented an overview at the March 17, 2025 study session. The presentation explained why trains are required to sound their horns at at-grade crossings and outlined the steps necessary to reduce horn frequency while maintaining required safety standards. The city council authorized staff to partner with SRF Consulting Group to complete a railroad safety study. The study provides an initial evaluation of the costs, feasibility and timeline for implementing a quiet zone along the CPKC railroad. It focuses exclusively on the CPKC rail line shown on the attached map, which runs north–south through the city about one‑half mile west of Highway 100. The CPKC rail line includes 16 crossings within St. Louis Park, along with four in Edina and two in Golden Valley, that warrant consideration given their close relationship to the St. Louis Park crossings. Quiet zone eligibility requires that at‑grade crossings meet Federal Rail Administration minimum infrastructure standards and maintain risk scores below national averages. Financial or budget considerations: The estimated cost to upgrade all railroad crossings along the CPKC line to quiet zone standards is $9,597,000. At this time, no funding sources have been identified to complete the improvements outlined in the study. Further work is needed to explore funding strategies and evaluate whether these improvements could be incorporated into the Capital Improvements Projects (CIP). Strategic priority consideration: St. Louis Park is committed to providing safe, reliable and well- maintained infrastructure and neighborhoods that connect people and places with an emphasis on walking, biking and transit. Supporting documents: Discussion Quiet Zone - Subzone map Prepared by: Jack Sullivan, assistant city engineer Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager Study session meeting of April 27, 2026 (Item No. 1) Page 2 Title: Canadian Pacific Kansas City Railroad safety study Discussion Background: St. Louis Park has a long history with freight rail trains transporting goods through the community. Three railroads traverse the city: Burlington Northern/Santa Fe (BNSF), Twin Cities and Western (TC&W) and the Canadian Pacific Kansas City (CPKC). Trains are required by the federal government to sound their locomotive horns at all at-grade railroad crossings. The horns are sounded regardless of the time of day. Overnight sounding of horns has resulted in concerns from the community. Federal regulations have a process for communities to partner with the railroad to greatly reduce the frequency of train horns, referred to as whistle quiet zones, while maintaining safety compliance. More information on the background of train horns can be found in the study session report from March 17, 2025. Since the presentation in March 2025, CPKC has adjusted its operating schedule multiple times—at some points running trains during the day and at other times overnight. These changes reflect the railroad’s business needs and broader market conditions. It is our understanding that trains are once again operating portions of their schedule overnight. Present considerations: For an at-grade rail crossing to be eligible for a quiet zone, the crossing must include the following minimum required crossing infrastructure: • flashing lights • two-quadrant vehicle gates • constant warning time (CWT) detection • power out indicators The physical infrastructure listed above assumes improvements to the crossing surface, pavement markings, signage and other best practices are also updated at each crossing. In addition to the minimum required crossing infrastructure, Supplemental Safety Measure (SSM) and Alternative Safe Measures (ASM) can be considered to help reduce the risk factor of the crossing below national averages and are included, when applicable, in the recommended improvements identified at each crossing. • SSMs are Federal Railroad Administration-approved safety improvements that can replace the need for train horns at crossings. Acceptable SSMs include raised concrete medians, four‑quadrant gates, channelization delineators, one‑way streets and street closures. • ASMs are safety improvements that require Federal Railroad Administration approval. Examples include three‑quadrant gates, raised concrete medians under 60 feet, photo/programmed enforcement and other geometric enhancements. Evaluation: The study team conducted field visits to examine the existing characteristics and infrastructure at each crossing. The team included representatives from CPKC Rail, the Federal Railroad Administration (FRA), Minnesota Department of Transportation (MnDOT), the cities of St. Louis Park and Edina, and the consulting team. Study session meeting of April 27, 2026 (Item No. 1) Page 3 Title: Canadian Pacific Kansas City Railroad safety study Edina was included as part of the study team because they were simultaneously conducting a similar railroad crossing and quiet‑zone assessment within their community. Within the study area, the following crossings were evaluated: • 14 at‑grade crossings • Two (2) pedestrian/ bicycle crossings • Four (4) at‑grade crossings in Edina This study did not include the two at‑grade crossings at Laurel Avenue and Golden Hills Drive in Golden Valley. Should the city pursue a quiet zone, Golden Valley staff will need to be involved in assessing these crossings. When this study was conducted, Golden Valley had not initiated its own review of the corridor. More information on why staff from Edina and/or Golden Valley would be involved in this study is in the sections below. Rail crossing findings: Approximately half of the St. Louis Park crossings do not meet the minimum required crossing infrastructure of flashing lights, two-quadrant vehicle gates, constant warning time detection, power out indicators to be eligible for implementation of a quiet zone. The analysis indicates that many of the crossings require upgrades to meet Federal Railroad Administration minimum requirements. A quiet zone must be at least half a mile in length, consist of at least one public at-grade railroad crossing and include adjacent crossings within a quarter mile. Since several of these crossings are located outside the city, coordination with the City of Edina and the City of Golden Valley will be necessary if St. Louis Park wishes its entire portion of the CPKC line be whistle quiet eligible. During the field visit, there were discussions about closing one of the low‑volume crossing “pairs”, such as 28th/29th Street or 41st/42nd Street. These crossings do not currently have the minimum required infrastructure for a quiet zone, would be costly to upgrade and carry low traffic volumes that could be redirected to adjacent streets. An approach could be to permanently close 29th Street and 42nd Street while keeping 28th and 41st Streets open, as they carry higher traffic volumes and include sidewalks. Any closure would likely apply to all modes, including pedestrians and bicyclists. Should the city pursue this, the cost to become whistle-quiet-ready will be lowered. As a tradeoff, the city should consider that crossing closed forever. Identifying quiet zones: The distance between adjacent crossings creates an opportunity to group the corridor into five smaller subzones. This provides the city with flexibility to implement quiet zone improvements in selected subzones rather than establishing a single quiet zone across the entire community. The subzones are shown on the Subzone map as: • Subzone A o Includes one crossing in St. Louis Park at Wayzata Boulevard and two crossings in Golden Valley at Laural Avenue and Golden Hills Drive. Study session meeting of April 27, 2026 (Item No. 1) Page 4 Title: Canadian Pacific Kansas City Railroad safety study • Subzone B o Is completely within St. Louis Park near Cedar Lake Road. • Subzone C o Is completely within St. Louis Park from 28th Street to just south of Minnetonka Boulevard. • Subzone D o Is completely within St. Louis Park from just south of Minnetonka Boulevard to the Twin Cities and Western Railroad (TC&W) south of Highway 7. • Subzone E o Includes seven crossings in St. Louis Park from TC&W Railroad to the Edina border and four crossings in Edina ending near Grandview Square. Implementation considerations: The five subzones (A–E) vary in the amount of coordination, funding and construction needed for implementation. To reflect these differences, the level of effort and anticipated timelines are organized into near‑term, mid‑term and long‑term groupings. • Near-term: Subzones completely within St. Louis Park with low barriers to completion have the potential to be implemented in 24 to 36 months. During the site visit, staff identified minor physical improvements that are not required but would make sense to complete. • Mid-term: Subzones completely within St. Louis Park requiring significant funding and physical improvements have the potential to be implemented in three to six years if funding is identified. • Long-term: Subzones that are dependent on integration with an adjacent community, require significant funding and physical improvement from the City of St. Louis Park and the neighboring community, have the potential to be implemented in six to twelve years assuming the neighboring city also updates its crossings. Table 1 outlines the level of effort associated with each subzone. Establishing a quiet zone requires an administrative review and approval process that generally takes a minimum of two years. This does not include the time needed to secure funding or complete construction of the necessary upgrades. Estimated costs: Table 1 provides planning-level cost estimates for implementing each subzone. These figures are subject to change based on factors such as the year of construction and any regulatory updates that may apply when the work proceeds. Closing the crossings at 29th Street and/or 42nd Street could lower overall project costs. Study session meeting of April 27, 2026 (Item No. 1) Page 5 Title: Canadian Pacific Kansas City Railroad safety study Table 1 Subzone Planning level cost estimate Level of effort Subzone A $1,470,000 (plus costs for Golden Valley) Long- term Subzone B $1,307,000 Mid to long- term Subzone C $2,630,000 Mid to long- term Subzone D $190,000 Near- term Subzone E $4,000,000 (plus costs for Edina) Long- term Total $9,597,000 (plus costs for Golden Valley and Edina) Funding: The costs in Table 1 above include engineering, administration, right of way and contingency. At this time, no funding sources have been identified to complete the crossing improvements. Further work is needed to explore funding strategies and evaluate whether these improvements could be incorporated into the CIP. Additionally, any improvements in Golden Valley and Edina would require those communities to determine appropriate funding mechanisms and establish timelines for implementing the recommended actions. Staff have been communicating with Golden Valley and Edina to understand their positions on potential improvements within their communities. Edina currently lists this as an “unfunded project” and is considering its inclusion in their CIP. Golden Valley is still completing its study and has not yet identified next steps. Coordination with other projects: The findings from the railroad crossing study will help in developing the city’s long-range CIP. For example, the 2028 Pavement Management project includes roadway reconstruction on 41st Street, Brookside Avenue and Yosemite Avenue, where railroad crossing upgrades have been identified but are not yet funded. The estimated cost for these upgrades is $1,400,000. Next steps: The railroad safety study indicates that many crossings require upgrades to meet FRA minimum requirements, however, the corridor is relatively safe and needs only limited risk‑reduction treatments. The city is well-positioned to establish quiet zones within portions of St. Louis Park but will need to coordinate with Edina and Golden Valley to implement a quiet zone across the entire city. Because quiet‑zone studies are typically valid for only five to ten years, the analysis will need to be updated if implementation occurs later in the planning horizon. The decision on when to proceed will depend on the city’s priorities, balancing the desire to reduce train horn noise with budget constraints and community impacts. Should the council direct staff to pursue implementation of the improvements in any of the subzones, further work is needed to explore funding strategies and evaluate whether these improvements could be incorporated into the CIP. \ Subzones A -B -c -D \-E r I • � Railway Network Pedestrian Crossing At-Grade Crossing r iUl � "O "' U) � 2 et: E :, U) "O et: ill :::; Cl)., � "' "O"" >., z .,, � r--fr-Ij ' �1 � <( -1!! :.1: Ill a. 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'E u "''-J &l .......... U) a, � ,.J--- U) J't---rr--(/).-(/)-(1)1-:-7 §;WS1stSt a, � LJ.J I t t W 52nd St _ n " � 0.5 I Miles 1_JVV�::;t Study session meeting of April 27, 2026 (Item No. 1) Title: Canadian Pacific Kansas City Railroad safety study Page 6 Meeting: City council Meeting date: April 27, 2026 Written report: 2 Executive summary Title: Development update Q2 2026 Recommended action: None. The attached report summarizes the status of major development projects occurring in St. Louis Park. Policy consideration: Not applicable. Contact staff with any questions. Summary: The attached report is meant to keep the Economic Development Authority (EDA)/city council informed on a quarterly basis as to the metrics, construction status and tentative schedule of major development projects in the city. For clarity: •Proposed developments: are those that are working through the planning entitlement process such as platting, PUDs, variances and have not yet been approved. •Approved developments: are those whose planning applications have been approved by the city council and have not yet commenced construction, but whose financial assistance agreements may or may not yet have been approved. •Under construction: are those that just started or are actively being constructed. •Completed developments: are those that have received their final certificates of occupancy. More detailed information can be found on the interactive development dashboard on the city’s website. The dashboard provides project metrics for all major developments or additions that have been approved, under construction or completed within the city since 2010. The dashboard includes website links, market rate and affordable unit counts by bedroom size, parking information, bike facilities, electric vehicle charging stations and more. Additionally, developments receiving financial assistance from the EDA/city are required to track diversity, equity and inclusion (DEI) goals related to business enterprises and workforce hiring goals. The current goal status for projects under construction is also included in the update. Financial or budget considerations: Development activity affects the city’s total tax capacity as reflected in the city’s annual budget and long-range financial plan, with new developments generating new property tax revenue. It also plays a significant role in the retention of the city’s AAA bond rating. Strategic priority consideration: St. Louis Park is committed to providing a range of quality, affordable and attainable housing options. Supporting documents: Major developments in St. Louis Park – 2nd Quarter 2026, DEI report and development gameboard graphic Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Jennifer Monson, economic development manager; Sean Walther, deputy community development director; Karen Barton, community development director & EDA executive director Approved by: Kim Keller, city manager Major Developments in St. Louis Park 2nd Quarter 2026 Multifamily housing development summary 2024-2026 YTD Total Market rate Affordable Proposed units 260 203 57 Approved units 207 199 8 Units under construction 602 475 127 Recently completed units (last two years) 624 316 308 All units* 1,693 1,193 500 Total Development Costs (TDC)* $492.3 million *Cumulative unit totals include projects for 2024 – first quarter 2026. For projects completed prior to 2024 please see the Development Dashboard on the city’s web site. **Total estimated TDC of all projects. Projects with unknown TDC excluded; actual totals are higher. For additional information please see Development Projects on the city’s web site. Proposed developments Project, location & developer Project Description Tentative Schedule Wooddale Station Redevelopment 5802 - 5950 36th Street W Sentinel Management Company Sentinel Management Company proposes to purchase and redevelop the EDA-owned lot located at 5950 36th St. W., as well as the neighboring property, into a mixed-use, mixed- income transit-oriented development. Sentinel proposes a five and six-story building with approximately 260 residential units of which approximately 21% will be affordable between 30%-60% AMI, 7,000 to 10,000 square feet of ground floor commercial space, and a public plaza. The project would meet the city’s green building policy and exceed the inclusionary housing policy. Estimated total development cost: TBD Sentinel Management company signed a preliminary development agreement in March 2026 and is working with staff on the details of its design and is preparing to submit a financial assistance application. Construction commencement TBD. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 2 Proposed developments Project, location & developer Project Description Tentative Schedule Shops at West End Office Development The owner of the Shops at West End, Hempel Real Estate, is exploring the possibility of redeveloping a vacant corner of the Shops to have ground floor commercial, with four to six stories of office space above. Estimated total development cost: TBD An AUAR update was approved by the city council on Oct. 6, 2025. Construction commencement is TBD. Approved developments Project, location & developer Project Description Tentative Schedule Parkway on 5 5430 Minnetonka Boulevard Sela Group & Affiliates Development of a 33-unit, three-story apartment building with a mix of underground and surface parking at the northwest corner of Minnetonka Boulevard and Highway 100. The project includes a public trail to the east of the site within the Minnesota Department of Transportation's right-of-way. Estimated total development cost: TBD The city council approved the requested application on Feb. 2, 2026. Construction commencement is TBD. Minnetonka Boulevard redevelopment 5707 – 5639 Minnetonka Boulevard GMHC & Homes Within Reach Affordable Housing Land Trust Construction of four twin homes (eight-units), providing eight permanently affordable homeownership opportunities on four vacant Economic Development Authority-owned lots. Estimated total development cost: $8 million Construction commencement anticipated Q2 2026. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 3 Approved developments Project, location & developer Project Description Tentative Schedule Knollwood Chipotle Lindsay Knollwood 2, LLC Construction of a Chipotle restaurant at the northwest corner of Highway 7 and Aquila Avenue South, with a drive-thru lane for pick up orders only. Estimated total development cost: TBD The project required a conditional use permit which was approved on Oct. 6, 2025. This project is currently under construction and anticipates opening in mid- July 2026. Park Place East 5775 Wayzata Boulevard GW Properties Proposed construction of two retail buildings in the southeast corner of the parking lot at 5775 Wayzata Boulevard. The new buildings will contain four fast-casual restaurants. Estimated total development cost: TBD Planning entitlements approved in December 2023 and June 2024. Building permits are submitted and construction commencement is TBD. 2625 Louisiana Avenue 2625 Louisiana Avenue Web Development LLC Largely vacant parcel adjacent to North Cedar Lake Regional Trail to be redeveloped as a 57-unit, four-story, mixed-use market-rate building with approximately 4,000 square feet of ground floor commercial space, with underground and surface parking. Project includes public path connecting Louisiana Ave . to the Regional Trail. Estimated total development cost: TBD Planning entitlements approved 2022 and reapproved 2024. Construction commencement TBD. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 4 Approved developments Project, location & developer Project Description Tentative Schedule Achromatic 6013 6013 and 6019 Cedar Lake Road Joshua Aaron Proposed is the redevelopment of two single-family homes and the construction of a 36 unit, three-story building with one level of below grade parking. Estimated total construction costs: TBD Planning entitlements approved March 2024. Construction commencement TBD. Parkway Residences W 31st St. between Inglewood Avenue & Glenhurst Avenue Sela Group & Affiliates Multi-phase redevelopment includes four, multi-family buildings with 211 units. The affordable housing includes 24 rehabilitated units made available to households earning up to 50% AMI and six new units made available to households earning up to 60% AMI. Phase III: Eleven-story, 73-unit apartment building. Estimated development cost: $36.2 million. Estimated total development cost (all phases): $91.4 million. Phase III commencement is TBD. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 5 Under construction Project, location & developer Project Description Tentative Schedule Terasă 5401 Gamble Drive Hempel Real Estate Redevelopment of the northwest office tower within the West End Office Towers complex and construction of up to a six-story, 222-unit mixed-use building with approximately 20,000 square feet of commercial space, potentially including a grocer, restaurant and coffee shop. Development will include affordable housing units (20% of total), made available to households earning up to 50% AMI. Estimated total development cost: $93.7 million. Construction started Q1 2026 with completion anticipated prior to Q3 2028. Beltline Boulevard Station Site SE quadrant of CSAH 25 & Beltline Boulevard Sherman Associates Major mixed-use, mixed income, transit-oriented, multi-phase development adjacent to Southwest Light Rail Transit Beltline Boulevard Station. Building 1 includes: •Seven-story mixed-use building with six levels of market rate housing (152 units) and 20,000 square feet of neighborhood commercial space. •A 592-stall parking ramp, which will include 268 park & ride stalls, 326 residential stalls and approximately 1,850 square feet of commercial space. •Estimated development cost: $55.7 million. •Estimated development cost of public ramp: $11.1 million. Construction schedule: Dewatering, underground utilities, and grading are complete Footings and foundations for Building 1, Building 3 and ramp are complete; and framing and construction are underway. Site preparation and the construction of the foundation for Building 2 is also underway. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 6 Under construction Project, location & developer Project Description Tentative Schedule Building 2 includes: •Four-story all affordable apartment building with 82 units, 39 units will be available to households earning up to 60% AMI, 23 units will be available to households earning up to 50% AMI, and 20 units will be available to households earning up to 30% AMI. The project includes twenty-two three bedroom units, and 44 units two bedrooms units •Estimated development cost: $28.4 million. Building 3 includes: •Five-story market rate apartment building with 146 units. Estimated development cost: $53.5 million. Altogether, the multi-phase redevelopment will have 380 apartment units of which 82 (21%) would be affordable. Estimated total development cost: $148.7 million. Construction completion for all phases is anticipated by Q1 2027, with Buildings 1 and 3 and the ramp opening sooner. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 7 Recently completed developments Project, location & developer Project Description Tentative Schedule Union Park Flats 3700 Alabama Avenue & 6027 37th Street W. PPL (Project for Pride in Living) Redevelopment of the north portion of the Union Congregational Church property with a three story, 60-unit affordable apartment building on the north half of the property. All unit rents have limits ranging between 30%-60% AMI. Union Congregational Church plans to remain on the south portion of the property. Total development cost: $28.7 million. Completed December 2024. Mera (formerly 9920 Wayzata) 9808 & 9920 Wayzata Boulevard Bigos Management Redevelopment of former Santorini’s restaurant property at northwest quadrant of I-394 & US 169. Six-story, 233-unit, mixed income apartment building with 20% (47) of the units available to households earning up to 50% AMI. Approximate total development cost: $68.6 million. Completed August 2024. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 8 Recently completed developments Project, location & developer Project Description Tentative Schedule Zelia on Seven (formerly Via Sol) SE quadrant Hwy. 7 & Wooddale Avenue 5855 Hwy. 7 Owned and managed by Bigos Management Mixed-income, transit-oriented development including a five- story, 217-unit apartment bulding (130 market rate units, 22 units affordable to households earning up to 50% AMI, and 65 units affordable to households earning up to 60% AMI, solar panels which will be installed spring 2025 (producing 220AC kW, 275 DC kW and 300,000 KwH total generation) and one- acre urban forest. Approximate total development cost: $88.4 million. Completed May 2024. Arbor Court 3801 Wooddale Avenue S. Real Estate Equities LLC Redevelopment of former Aldersgate Church property adjacent to Burlington Coat/Micro Center and Highway 100. All affordable housing development includes 114-units, with 205 parking stalls, of which 117 stalls would be underground. •5 units affordable to households earning up to 30% AMI •5 units affordable to households earning up to 50% AMI •104 units affordable to households earning up to 60% AMI Total development cost $38.3 million. Completed March 2024. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 9 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Terasă Development Terasă Development QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 4 Percentage of women-owned business enterprises in development 0% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women-owned business enterprises in development 0% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0% 13% Total number of construction workers contracted in development 4 Percentage of women workforce in development 0% 20% Percentage of BIPOC/AAPI workforce in development 0% 32% Percentage of total construction hours for women workforce in development 0% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 0% 32% Total number of employees at business organization 85 Percentage of women employed by business organization 38.8% 10% Percentage of BIPOC/AAPI persons employed by business organization 15.3% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 10 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Building #1 – Mixed Use Building Beltline Station #1 QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 32 Percentage of women-owned business enterprises in development 12.5% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women-owned business enterprises in development 4.8% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0.0% 13% Total number of construction workers contracted in development 195 Percentage of women workforce in development 4.6% 20% Percentage of BIPOC/AAPI workforce in development 8.7% 32% Percentage of total construction hours for women workforce in development 5.9% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 3.5% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 11 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Building #2 – Affordable Housing Beltline Station #2 QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 31 Percentage of women-owned business enterprises in development 13% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women-owned business enterprises in development 0% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0% 13% Total number of construction workers contracted in development 42 Percentage of women workforce in development 5% 20% Percentage of BIPOC/AAPI workforce in development 12% 32% Percentage of total construction hours for women workforce in development 7.7% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 13.8% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 12 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Building #3 – Market Rate Housing Beltline Station #3 QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 40 Percentage of women-owned business enterprises in development 10% 6% Percentage of BIPOC/AAPI owned business enterprises in development 2.5% 13% Percentage of total development dollars paid to women-owned business enterprises in development 4.8% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0.4% 13% Total number of construction workers contracted in development 397 Percentage of women workforce in development 1.8% 20% Percentage of BIPOC/AAPI workforce in development 10.1% 32% Percentage of total construction hours for women workforce in development 1.2% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 9.8% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 13 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Sitework – for all buildings and the parking ramp Beltline Station Sitework QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 7 Percentage of women-owned business enterprises in development 0% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women- owned business enterprises in development 0.00% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0.00% 13% Total number of construction workers contracted in development 162 Percentage of women workforce in development 1% 20% Percentage of BIPOC/AAPI workforce in development 15.1% 32% Percentage of total construction hours for women workforce in development 0.2% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 13.7% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 14 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Terasă Development Terasă Development QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 4 Percentage of women-owned business enterprises in development 0% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women-owned business enterprises in development 0% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0% 13% Total number of construction workers contracted in development 4 Percentage of women workforce in development 0% 20% Percentage of BIPOC/AAPI workforce in development 0% 32% Percentage of total construction hours for women workforce in development 0% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 0% 32% Total number of employees at business organization 85 Percentage of women employed by business organization 38.8% 10% Percentage of BIPOC/AAPI persons employed by business organization 15.3% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 15 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Building #1 – Mixed Use Building Beltline Station #1 QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 32 Percentage of women-owned business enterprises in development 12.5% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women-owned business enterprises in development 4.8% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0.0% 13% Total number of construction workers contracted in development 195 Percentage of women workforce in development 4.6% 20% Percentage of BIPOC/AAPI workforce in development 8.7% 32% Percentage of total construction hours for women workforce in development 5.9% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 3.5% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 16 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Building #2 – Affordable Housing Beltline Station #2 QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 31 Percentage of women-owned business enterprises in development 13% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women-owned business enterprises in development 0% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0% 13% Total number of construction workers contracted in development 42 Percentage of women workforce in development 5% 20% Percentage of BIPOC/AAPI workforce in development 12% 32% Percentage of total construction hours for women workforce in development 7.7% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 13.8% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 17 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Building #3 – Market Rate Housing Beltline Station #3 QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 40 Percentage of women-owned business enterprises in development 10% 6% Percentage of BIPOC/AAPI owned business enterprises in development 2.5% 13% Percentage of total development dollars paid to women-owned business enterprises in development 4.8% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0.4% 13% Total number of construction workers contracted in development 397 Percentage of women workforce in development 1.8% 20% Percentage of BIPOC/AAPI workforce in development 10.1% 32% Percentage of total construction hours for women workforce in development 1.2% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 9.8% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 18 Diversity, Equity, and Inclusion Hiring Goals Report – April 2026 Beltline Station Sitework – for all buildings and the parking ramp Beltline Station Sitework QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS Total number of business enterprises contracted in development 7 Percentage of women-owned business enterprises in development 0% 6% Percentage of BIPOC/AAPI owned business enterprises in development 0% 13% Percentage of total development dollars paid to women- owned business enterprises in development 0.00% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 0.00% 13% Total number of construction workers contracted in development 162 Percentage of women workforce in development 1% 20% Percentage of BIPOC/AAPI workforce in development 15.1% 32% Percentage of total construction hours for women workforce in development 0.2% 20% Percentage of total construction hours for BIPOC/AAPI workforce in development 13.7% 32% Total number of employees at business organization 530 Percentage of women employed by business organization 30.9% 10% Percentage of BIPOC/AAPI persons employed by business organization 31.5% 13% *The BIPOC/AAPI workforce demographic data is self-reported and likely does not fully capture Hispanic/Latinx individuals. Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 19 Beltline Station – all phases (B1, B2, B3, ramp) Wooddale Station Redevelopment Minnetonka Blvd. Twin homes Terasa Development 2625 Louisiana Ave. Achromatic 6013 Parkway Residences Phase III Parkway on 5 Study session meeting of April 27, 2026 (Item No. 2) Title: Development update Q2 2026 Page 20