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HomeMy WebLinkAbout2014/02/10 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA FEBRUARY 10, 2014 6:00 p.m. BOARDS & COMMISSIONS INTERVIEWS – Westwood Room 6:30 p.m. CITY COUNCIL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning – February 18 and 24, 2014 2. 6:35 p.m. Introduction to Form-Based Codes 3. 7:35 p.m. Southwest LRT Update 4. 8:35 p.m. Review Outcomes and Agenda for City Council Workshop 8:50 p.m. Communications/Meeting Check-In (Verbal) 8:55 p.m. Adjourn Written Reports 5. Proposed Allocation of 2014 Community Development Block Grant (CDBG) Funds 6. Highway 169 – Noise Wall Project 7. Highway 169 – W. 16th Street Access Closure 8. EDA Redevelopment Contract Status Report 9. Annual Open to Business Program Update 10. Board of Zoning Appeals (BOZA) 2013 Annual Report Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting: Study Session Meeting Date: February 10, 2014 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning – February 18 and 24, 2014 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for the Special Study Session scheduled for February 18, 2014 and the regularly scheduled Study Session on February 24, 2014. POLICY CONSIDERATION: Does the Council agree with the agendas as proposed? SUMMARY: At each study session approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the proposed discussion items for the Special Study Session scheduled for February 18, 2014 and the regularly scheduled Study Session on February 24, 2014. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Future Study Session Agenda Planning – February 18 & 24, 2014 Prepared by: Debbie Fischer, Office Assistant Approved by: Tom Harmening, City Manager Study Session Meeting of February 10, 2014 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning – February 18 and 24, 2014 Special Study Session, February 18 (Tuesday), 2014 – 6:30 p.m. Tentative Discussion Items 1. Update on Fire Department Operations – Fire (50 minutes) An update from the new Fire Chief following his first 90 days since coming on board. A brief review of actions within the department, new initiatives planned for 2014 and thoughts about where we go from here will be given. Included in this discussion will be an update on the progress between the City of St. Louis Park and Park Nicollet towards the possibility of undertaking a Pilot Program to confront the high costs of reentry by patients into the hospital system within thirty days of discharge. Staff will provide a more detailed update on this initiative. End of Meeting: 7:20 pm Boards & Commissions Interviews , February 24, 2014 – 6:00 p.m. Study Session, February 24, 2014 – 6:30 p.m. Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. SWLRT Station Plans – Community Development (60 minutes) An update will be provided on the freight issue. Staff will discuss work on planning for the three LRT station areas including evaluation of platform location and grade separation options and introduce the Transitional Station Area Action Plans (TSAAP also known as the Investment Framework). 3. 2014-2015 Communications Plan/Ideas in the Park – Information Resources (60 minutes) Information Resources staff will briefly review the 2012-2013 Communications Plan and present the proposed 2014-2015 Communications Plan. The plan is not formally adopted by the Council, but this meeting serves as an opportunity for council members to help staff set communications priorities for the next two years. Additionally, staff will review use of IdeasInThePark.org and other communications tools. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. Reports 4. 2013 Housing Activity Report 5. 2014 January Financial Report End of Meeting: 8:40 pm Meeting: Study Session Meeting Date: February 10, 2014 Written Report: 10 EXECUTIVE SUMMARY TITLE: Board of Zoning Appeals (BOZA) 2013 Annual Report RECOMMENDED ACTION: No action at this time. The BOZA 2013 Annual Report summarizes the work completed by the BOZA in 2013. POLICY CONSIDERATION: None at this time. SUMMARY: In accordance with Council policy, the 2013 Annual Report is attached in full for City Council review. The report: • States the powers and duties of the BOZA. • Identifies when a variance is considered by the BOZA or the Planning Commission. • Highlights the number and type of applications processed in 2013. • Summarizes each variance request, and the action taken by the BOZA. The BOZA and planning staff can respond to any questions the City Council may have at a future City Council meeting. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: 2013 BOZA Annual Report Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Approved by: Tom Harmening, City Manager Board of Zoning Appeals 2013 Annual Report Board of Zoning Appeals Commission Members Susan Bloyer, Chair James Gainsley, Vice-Chair Paul Roberts, Board Member Justin Kaufman, Board Member Henry Solmer, Board Member Gary Morrison, Staff Liaison Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 2 BOARD OF ZONING APPEALS Board of Zoning Appeals (BOZA) established: Section 2-301 – 305 of the City Code establishes the Board of Zoning Appeals. Membership: The Board consists of five regular members appointed by the City Council for three-year terms. The members of the board are to be qualified voters and residents of the city. A staff liaison to the Board is appointed by the City Manager. The staff liaison is the Assistant Zoning Administrator, Gary Morrison. Meetings: The Board meets once a month, at 6 pm on the fourth Thursday of the month. Powers and duties: The responsibilities of the BOZA include: (1) Hear and decide on appeals from any order, requirement, permit decision or refusal or determination made by the zoning administrator under the zoning chapter and from any interpretation of the text of the zoning chapter, or any location of the boundary of a zoning district as shown on the official zoning map made by the zoning administrator, in accordance with all requirements of local and state laws. (2) Hear and decide on requests for variances from the terms of the zoning chapter in the manner and subject to the standards and requirements set forth in the zoning chapter and applicable state laws. (3) Communicate with the City Council its recommendations, records of proceedings and any other method of reporting as may be deemed appropriate by the city council. (4) Act in an advisory capacity to the City Council and hear and make recommendations to the City Council on all matters referred to the board or upon which it is required to act under the zoning chapter. Decision subject to appeal to the City Council: Any party aggrieved by a decision of the BOZA may appeal the decision to the City Council. The appeal must be filed with the planning department within ten days of issuance of the BOZA decision. Variances heard by the BOZA or the Planning Commission: A variance application will be heard by either the BOZA or the Planning Commission depending on the nature of the application. Occasionally a variance application is submitted to the City as part of a larger development that also requires a Conditional Use Permit (CUP), Planned Unit development (PUD) or subdivision. When this happens, then the variance application is sent to the Planning Commission for consideration along with the CUP, PUD or subdivision applications. This allows the Planning Commission to review and consider all applications together, as one proposal. If the variance application is not part of a larger development, meaning, it is the only application submitted, then the variance is considered by the BOZA. This is typically the case for single family home owners that need a variance for an addition or garage. Occasionally, the BOZA will consider an application from a commercial property that needs a variance to complete a small improvement, but only if another application such as a CUP, PUD or subdivision is not also required. Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 3 2013 - SUMMARY Ryan Burt resigned from the committee, and the City Council appointed Justin Kaufman to fill the vacancy. Mr. Kaufman’s first meeting was June 27th. The BOZA heard seven variance applications, and approved all of them. Two of the variance requests, however, were reduced by the BOZA because they were unable to find that the requested variances met the criteria for granting a variance. They were, however, able to approve findings for reduced variances. One decision was appealed to the City Council (4701 Excelsior Blvd – BP Station). The BOZA decision was upheld by the Council. The following is a summary of the variances applied for since 2007. VARIANCE APPLICATIONS RECEIVED 2007 2008 2009 2010 2011 2012 2013 RESIDENTIAL Setbacks Attached Garages: Interior side setback: 0 1 2 1 2 0 1 Rear setback: 0 3 0 1 0 0 Side yard abutting the street setback: 0 3 0 0 0 0 Living Space: Front setback: 0 0 0 0 0 1 1 Interior side setback: 1 1 0 0 0 1 Side yard abutting the street setback: 0 1 0 0 0 0 Miscellaneous: Deck-Interior side yard: 1 0 0 0 0 0 Open covered porch – front yard 0 0 0 0 0 0 1 Eave – interior side yard 3 0 0 0 0 0 Total Residential Variances: 5 9 2 2 2 2 3 COMMERCIAL Rear setback: 0 0 0 0 0 0 Front setback: 1 0 0 0 1 0 1 Side yard abutting the street setback: 0 1 0 0 0 0 2 Expand a non-conformity: 0 1 0 0 0 0 Increase total sign area: 0 0 0 1 0 0 Drive aisle width: 0 0 0 0 0 0 1 Total Commercial Variances: 1 2 0 1 1 0 4 Total Variances: 6 11 2 3 3 2 7 APPEAL APPLICATIONS RECEIVED 2007 2008 2009 2010 2011 2012 2013 RESIDENTIAL 0 0 0 0 0 1 0 COMMERCIAL 1 0 0 1 0 0 1 Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 4 Jennings Liquor – 4637 Excelsior Blvd. BOZA Date: April 25, 2013 Continued Date: May 23, 2013 Request: To construct an addition with the following variances: • 7.5 foot variance to allow a 5.0 foot front yard. • 10.0 foot variance to allow a 5.0 foot side yard abutting the street. • Variance to allow the corner of the building to encroach into the visibility triangle. BOZA Action: The applicant requested a variance to allow a 0.0 foot front setback and a 0.0 foot side yard abutting the street setback. The BOZA expressed a reluctance to approve a variance that would allow the building to go up to the property line along the front and side yard abutting the street. The applicant asked that the request be tabled so that the applicant can consider a lesser variance. The BOZA indicated that it would be willing to consider a variance to allow a 5.0 foot front and side yard abutting the street. The applicant resubmitted plans and a revised applicant requesting the above variances to allow the building to be 5.0 feet from the front and side yard abutting the street property line. The BOZA approved the request along with a variance to allow the corner of the building to extend into the visibility triangle to the extent shown in the survey. No permits have been issued at this time of this report. Work has not begun. Before Photograph: Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 5 Matthew Wyatt – 3333 Huntington Ave S BOZA Date: June 27, 2013 Request: To construct an attached garage with the following variance: • 1.9 foot variance to the required 5.0 foot side yard BOZA Action: Approved the requested 1.9 foot variance to allow an attached two-car garage to be constructed 3.1 feet from the interior side property line. The applicant wanted additional storage space behind the garage to also be setback 3.1 feet from the property line. The BOZA, however, did not extend the variance to include the storage area. Therefore, only the garage portion of the addition can be setback 3.1 feet from the property line. The storage space has to adhere to the 5.0 foot side yard setback. Under Construction: Before: Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 6 Elion Acquisitions – 4701 Excelsior Blvd BOZA Date: August 22, 2013 Request: To remove existing fuel station, and construct new three tenant commercial building. The following variances were requested for the building and the parking lot: • 10 foot variance to allow a 5.0 foot side yard abutting the street. • 1 foot variance to allow a 24 foot wide drive aisle instead of the required 25 feet. BOZA Action: The BOZA approved the requested variances. The approval was appealed to the City Council. Appeal to City Council: The Council conducted the appeal, and voted to uphold the BOZA decision. Update: The applicant did not purchase the property, and the proposal is not moving forward. The fuel station was purchased by “Excelsior BP”, a group that owns other fuel stations around the metro area. The new owner intends to operate the fuel/repair station as is. He is not proposing any changes to the site. Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 7 Bill Worms – 2930 Cavell Ave S. BOZA Date: September 26, 2013 Request: To construct an addition with the following variances: • 10.1 foot variance to allow a 19.9 foot front yard. • 6.3 foot variance to allow a 13.7 foot front yard for an open covered porch. The applicant requested the variances to construct an addition to the front of the house. The addition fills in an open area between two existing bump-outs, so the front wall will extend, without interruption, across the entire front of the house. The second floor addition did not require a variance. BOZA Action: Approved the request. Before : Under Construction: Study Session Meeting of February 10, 2014 (Item No. 10) Title: Board of Zoning Appeals (BOZA) 2013 Annual Report Page 8 Meeting: Study Session Meeting Date: February 10, 2014 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Introduction to Form-Based Codes RECOMMENDED ACTION: No action at this time. The purpose of this item is to provide an overview to Council of form-based codes and how they work. POLICY CONSIDERATION: No policy consideration at this time. SUMMARY: The City received a Livable Communities Demonstration Account-Transit Oriented Development (LCDA-TOD) Pre-Development grant from the Metropolitan Council in July, 2013 to develop a form-based code (FBC). The form-based code will address the three SWLRT station areas and is being pursued to foster and encourage Transit-Oriented Development (TOD) in these areas. Staff last discussed this item at the November 25 study session. Council had numerous questions on how this form of zoning would work and asked that they be kept apprised as the study moved forward. The City has contracted with CodaMetrics, based in Chicago, IL to develop the form-based code and to guide the City through this process. The project is expected to be complete in May, 2015. As part of the consultant’s initial visit, staff has asked the consultant to provide an introduction to form-based codes to the Council. The presentation will provide a brief overview of what form-based codes are, how they promote walkable, mixed-use areas and how form-based codes compare to traditional zoning. FINANCIAL OR BUDGET CONSIDERATION: $25,000 City Match. ($125,000 total budget with $100,000 from the Metropolitan Council + $25,000 City Match.) VISION CONSIDERATION: 1. St. Louis Park is committed to being a connected and engaged community. 2. St. Louis Park is committed to promoting an integrating arts, culture and community aesthetics in all City initiatives, including implementation where appropriate. SUPPORTING DOCUMENTS: Excerpt of Presentation Slides Prepared by: Ryan Kelley, Associate Planner Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager ! !what? 1 FORM-BASED CODES foster PREDICTABLE built results. 2 FORM-BASED CODES foster a high-quality PUBLIC REALM. 3 FORM-BASED CODES use physical FORM as the organizing principle for the code. 4 FORM-BASED CODES are REGULATIONS, not just guidelines, adopted into city ordinance. Study Session Meeting of February 10, 2014 (Item No. 2) Title: Introduction to Form-Based Codes Page 2 ! ! regulate how far buildings are from sidewalks. BUILDING FORM REGULATIONS FBCI Introducing Form-Based Codes Building(Form(Standards(designate%where%parking%should%go.%For% example,%the%standards%can%require%the%placement%of%parking%to%the% rear%of%buildings%to%ensure%that%it%doesn’t%get%between%buildings%and% pedestrians.%% /45 26 FBCI Introducing Form-Based Codes Building(Form(Standards(designate%where%parking%should%go.%For%example,%the%standards%can%require%the%placement%of%parking%to%the% rear%of%buildings%to%ensure%that%it%doesn’t%get%between%buildings%and% pedestrians.%% /45 26 Images from Urban Advantage Study Session Meeting of February 10, 2014 (Item No. 2) Title: Introduction to Form-Based Codes Page 3 ! ! regulate where doors and windows are required, especially on ground stories. BUILDING FORM REGULATIONS FBCI Introducing Form-Based Codes Building(Form(Standards(can%require%buildings%to%have% windows%and%welcoming%entries.%They%should% contribute%to%life%on%the%sidewalk.%% /45 25 FBCI Introducing Form-Based Codes Building(Form(Standards(can%require%buildings%to%have% windows%and%welcoming%entries.%They%should% contribute%to%life%on%the%sidewalk.%% /45 25 Images from Urban Advantage Study Session Meeting of February 10, 2014 (Item No. 2) Title: Introduction to Form-Based Codes Page 4 ! ! Building Parking Building Parking Build-To Zone Setback Line Conventional Zoning Form-Based Coding SETBACK LINE BUILD-TO LINE/ZONE compare Study Session Meeting of February 10, 2014 (Item No. 2) Title: Introduction to Form-Based Codes Page 5 ! ! Conventional Zoning Form-Based Coding FLOOR AREA RATIOS (FAR) DEFINED BUILDING ENVELOPE compare Study Session Meeting of February 10, 2014 (Item No. 2) Title: Introduction to Form-Based Codes Page 6 Meeting: Study Session Meeting Date: February 10, 2014 Discussion Item: 3 EXECUTIVE SUMMARY TITLE: Southwest LRT Update RECOMMENDED ACTION: None at this time. Staff will provide an overview of the TranSystems freight rail report and discuss with Council a response to its findings. POLICY CONSIDERATION: The Council’s adopted policy on freight rail is that the City will only consider a reroute if there is no viable alternative, and then only if proper mitigation is provided. SUMMARY: On January 30, 2014 the Metropolitan Council released three new reports related to the SW LRT Project (located at http://www.stlouispark.org/light-freight-rail/recent- news.html). For St. Louis Park the most relevant is the TranSystems report related to rerouting freight rail through St. Louis Park. Comments on the reports are due on March 3, 2014 (this is a change from what was previously identified). The TranSystems draft report proposes a new reroute option through St. Louis Park using the MNS tracks. It is essentially a variation on the re-route concept plan from the SWLRT DEIS. At the study session staff will walk the City Council through the TranSystems concept plan and highlight the concerns the plan presents for the city. It is proposed that these concerns be the core of the comments the City will submit to the Met Council on the TranSystems draft report. The key differences between the TranS ystems proposed plan and the SWLRT DEIS plan is how and where the route crosses Hwy 7. The TranSystems plan adds a new bridge over Hwy 7, requires the lowering of Hwy 7 three to four feet, passes the Excel substation on the west side (the DEIS route passes on the east side) and requires substantial changes to roads in the Walker/Lake Street, Library Lane area. Per TranSystems report this option will require the acquisition of several homes and business including the STEP property. The broad areas of concern identified to date are outlined in the Discussion section of this report. Staff and its consultants are continuing to review the report and plans, and will provide more detailed comments at the meeting. Southwest Project Office staff is reviewing and adjusting the cost estimates in order that the new reroute can be compared with all of the other rail routing options. NEXT STEPS: Comments on the reports are due on March 3, 2014. Staff will refine comments for Council consideration at the upcoming February meetings. FINANCIAL OR BUDGET CONSIDERATION: Not applicable at this time. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion: Outline of Concerns Prepared by: Meg J. McMonigal, Planning and Zoning Supervisor Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Study Session Meeting of February 10, 2014 (Item No. 3) Page 2 Title: Southwest LRT Update DISCUSSION Preliminary Outline of Concerns 1. The TranSystems Reroute plan is not materially different from previous plans to reroute trains in SLP. The TranSystems's plan: 1. Is based on extensive berms and bridge structures like the others 2. Has significant negative impacts on the community 3. Requires homes and businesses and non-profits to be acquired and relocated 4. Leaves unresolved the question of who is responsible for the long term maintenance of the substantial new rail infrastructure it creates 5. Has uncertain acceptability by the railroads 6. Impacts the Excel substation; and, 7. Creates severe circulation problems in the vicinity of SLP HS 2. How the cost of this plan compares with the other freight rail plans is not known 1. The TranSystems cost estimates do not include property acquisition, permitting, environmental remediation, wetland mitigation, and other mitigation needs the City has identified in the past 2. No costs associated with "clipping" a corner of Excel Energy substation are included 3. Precisely how the estimates were prepared and what was included in calculating the costs has not been provided. 4. Substantial additional analysis is needed if cost comparisons between the alternatives are to be made. 3. If a less expensive freight rail/LRT solution is the goal, cheaper alternatives already exist and should be considered. 1. The least expensive freight rail solutions, co-location at grade and co-location with the trail elevated or relocated, are clearly the least expensive solutions 2. In fairness to the taxpayers of the region, these co-location solutions should be reconsidered if lower cost is the motivating goal. 4. Twin Cities & Western Railroad has stated, "we would accept any routing plan that enabled us to operate at the same levels of safety and cost efficiency as we do now." 1. This is absolutely reasonable and appropriate. Why should any business or property owner be expected give away what they already have for something less. 2. Can a train operate on the TranSystem design if it could overcome the obstacles to being built? Yes. Is it a route that is at the same level of safety and cost efficiency as Kenilworth? No. 3. By both measures, safety and cost efficiency, the TranSystem Plan is not at the same level as Kenilworth. 4. The TranS ystem route is elevated on bridges and berms and passes by schools and playgrounds and electrical substations and backyards. 5. The TranS ystems plan adds operational complexity for TCW by sharing the MN&S trackage with CP. 5. The TranS ystems draft Report is full of errors, omissions and unexplained assumptions. A detailed review will be completed and specific comments and corrections submitted. Meeting: Study Session Meeting Date: February 10, 2014 Discussion Item: 4 EXECUTIVE SUMMARY TITLE: Review Outcomes and Agenda for City Council Workshop RECOMMENDED ACTION: No formal action required. Council is asked to review and provide feedback on the draft design of the City Council workshop which will be held February 27 and 28. POLICY CONSIDERATION: None at this time. SUMMARY: A City Council Workshop Planning Committee (Jake Spano, Steve Hallfin, and Gregg Lindberg) met with consultant Jenny Welch to help develop the direction of the workshop. This group met on January 23 to review both the survey information and the discussion at the January 10 City Council Study Session. Based on the Planning Committees work, the draft Outcomes, Agenda and Workshop Guidelines have been prepared and staff desires input from the Council in order to help staff finalize planning for the workshop. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Tentative Outcomes and Agenda for Thursday, February 27 & Friday, February 28 Workshop Guidelines Prepared by: Tom Harmening, City Manager City Council Workshop February 27-28, 2014 Desired Outcomes for City Council Workshop • To continue to build a foundation for a high functioning/high performing City Council • To achieve mutual understanding of the current state of housing in St. Louis Park and current and future market trends. • To achieve clarity on each Councilmembers views/feelings regarding the existing Housing Goals and Policies. • To identify those areas of the existing Housing Goals and Polices that need to be amended, eliminated or added so as to align with the Council’s vision for the future. This includes beginning to develop a framework around housing policy relative to SWLRT. Thursday 4:30 – 9:00 pm 1. Welcome 2. Carver Governance Model a. A quick overview of what it is/how it works including the role of council with staff. b. Council members will share examples that they have noted over the past year. Nancy Deno and Bridget Gothberg will give a short overview of the underlying Carver premises. Then we will open the discussion about Carver and how it is working with the City Council— what we are doing well, what is missing that would make us even more effective with Carver. Please bring your questions. 3. Relational Learning a. Individual styles and Communication b. Group Development DINNER: Approximately at 6:00 p.m. 4. Facilitated Dialogue a. Review unwritten rules b. Conversation about our expectations of working with each other i. Communication expectations ii. Dealing with conflict iii. Emails iv. Other c. What do we need to commit to so that we keep functioning and performing at a high level? 5. Legal principles a. Differences between legal principles and policy preferences b. What CC members need to know and apply to decision-making 6. Closure Study Session Meeting of February 10, 2014 (Item No. 4) Title: Review Outcomes and Agenda for City Council Workshop Page 2 Friday 8:30 – 4:00 pm 8:15 Coffee and Goodies 8:30 Workshop Starts 1. Introductions & Brief Recap of Thursday night 2. Plan for the Day a. Review process and agenda b. Review Ground rules (see attached) 3. Undertake review of existing Housing Goals and Policies. Desired outcomes include: a. Identify where each council member stands re: each of the City’s Housing Goals and Policies b. Where is each Councilmembers passion relative to housing? c. What are non-starters? d. Where do we have gaps in our housing policy/housing stock and how does this compare to market trends? e. Where do we need more information? f. Where do we have a lack of agreement? Lunch and Breaks will happen! 4. Future Direction a. From the Council’s point of view, what should the City’s housing stock look like in 20- 30 years and how does this compare to expected housing trends and market? b. What parts of the existing Housing Goals and Polices are still relevant, or should be amended, eliminated, or added? c. What are the elements the City Council would like to see included in housing goals and policies for SWLRT? 5. Next Steps: Commitment a. Identify the next steps in achieving the adoption of new Housing Goals and Polices for the future. 6. Summarize the Day a. Brief review of day b. Each person checks-in 7. Adjourn Study Session Meeting of February 10, 2014 (Item No. 4) Title: Review Outcomes and Agenda for City Council Workshop Page 3 Proposed Guidelines for Workshop Participants • Be present. • Respect each other’s time • Be concise – stay in the “Big Bowl.” • Be prepared. • Everyone participates / everyone listens. • Don’t assume that you know or they know. • When decisions are made they are not revisited unless there has been a significant change to the context behind the decision – We will align on a process that protects us from unnecessarily revisiting decisions that have already been made. Study Session Meeting of February 10, 2014 (Item No. 4) Title: Review Outcomes and Agenda for City Council Workshop Page 4 Meeting: Study Session Meeting Date: February 10, 2014 Written Report: 5 EXECUTIVE SUMMARY TITLE: Proposed Allocation of 2014 Community Development Block Grant (CDBG) Funds RECOMMENDED ACTION: No action required at this time. This report is being provided to inform the Council of the proposed allocation of 2014 CDBG funds. POLICY CONSIDERATION: Does the City Council concur with the recommendations made for the allocation of $195,859 in 2014 CDBG funds? SUMMARY: Each year the City must decide how to use its annual allocation of CDBG Funds. CDBG funds are US Housing and Urban Development (HUD) funds distributed through Hennepin County. The allocation amount for cities within the county is based on a calculation of 2010 census poverty data. The City must submit its proposed use of the allocation to Hennepin County by February 27th. Prior to submittal, the City must hold a public hearing. The hearing and official City Council action is scheduled for February 18th. This year’s proposed use of CDBG funds reflects the City’s priorities to preserve existing housing and increase affordable ownership opportunities. Ninety-six percent of the allocation, or $188,359 of the $195,859, focuses on assisting low-income residents with emergency repairs, rehab loans and affordable ownership opportunities. The remaining amount is proposed for youth park programming at Meadowbrook Manor Park. FINANCIAL OR BUDGET CONSIDERATION: CDBG funds allow cities discretion (within the HUD guidelines) to fund projects that meet the national low income objectives and the needs of cities. CDBG funding is expected to remain close to the fiscal year 2013 funding level; however, the federal budget has yet to be finalized. 2013 funding levels will be used for planning purposes until the 2014 allocation is finalized. St. Louis Park will receive an estimated $195,859 in 2014. The 2014 CDBG year runs from July 1, 2014 through December 31, 2015. Staff anticipates the proposed projects can expend the funds in a timely manner as has been our historical practice of fully expending CDBG funds. Final funding amount may vary slightly from the estimate. Staff will keep Council apprised of actual funding amounts. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion Proposed Program Descriptions Draft Resolution Prepared by: Marney Olson, Housing Programs Coordinator Reviewed by: Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager Study Session Meeting of February 10, 2014 (Item No. 5) Page 2 Title: Proposed Allocation of 2014 Community Development Block Grant (CDBG) Funds DISCUSSION BACKGROUND: The national objectives of the CDBG program are to benefit low and moderate-income persons, prevention or elimination of slum or blight and/or to meet a particular urgent community development need. From a policy perspective, the City Council has typically focused CDBG funds on “sticks and bricks” improvements to the housing stock for low-income families, for both single-family (SF) owners and multifamily housing residents. A small portion of funds have also been allocated to support public services for St. Louis Park Housing Authority (SLPHA) residents and park programming for low-income youth. PRESENT CONSIDERATIONS: The proposed use of CDBG funds reflects the City’s priorities to preserve existing housing and increase affordable ownership opportunities. This year’s proposed allocation is summarized in Table 1 below. Ninety-six percent of the allocation, or $188,359 of the $195,859, focuses on assisting low-income residents with emergency repairs, rehab loans, home renovations and affordable ownership opportunities. The remaining amount is proposed for youth park programming at Meadowbrook Manor Park. Historically, the City has allocated CDBG funds to non-profit affordable housing providers to assist with their building renovations. Both PPL and Perspectives require water main replacement for buildings at Louisiana Court which provides housing to low-income residents. Table 1: Proposed 2014 CDBG Allocation Project Activity Proposed Ongoing Activity Allocation Low Income Single Family Emergency Repair Program $45,000 yes Low Income Single Family Home Rehab Loan $60,000 yes Affordable Housing Land Trust – Homes within Reach $20,000 yes St. Louis Park Housing Authority – Rehab for scattered site home $23,359 yes Perspectives, Inc. – Water Main Replacement at Louisiana Court $20,000 no PPL – Water Main Replacement at Louisiana Court $20,000 No Public Service – Youth Park Programming at Meadowbrook Park $7,500 yes Total $195,859 NEXT STEPS: The St. Louis Park Housing Authority (SLPHA) will review and discuss the proposed allocation at its February 12, 2014 meeting. The Commissioners’ comments will be shared at the Public Hearing on February 18, 2014. The following actions are required to receive 2014 CDBG funds: February 6, 2014 Publication of Public Hearing Notice February 18, 2014 Public Hearing and Approval of Resolution Outlining Proposed Activities February 27, 2014 Deadline for Submission of CDBG Application to Hennepin County Study Session Meeting of February 10, 2014 (Item No. 5) Page 3 Title: Proposed Allocation of 2014 Community Development Block Grant (CDBG) Funds Proposed Program Descriptions Emergency Repair Program – Single Family $45,000 This program is consistent with the Council’s focus on stick and bricks and has proven its responsiveness to low income seniors and vulnerable residents with annual incomes of 50% or less of the median area income, or $29,050 for a single person household, and assets less than $25,000. It provides grants of up to $4,000 for emergencies such as leaking roofs, plumbing repairs and water heaters. Community Action Partners for Suburban Hennepin County (CAPSH) currently administers this program for the City. This is an ongoing CDBG activity. Low Income Single Family Deferred Loan Program- $60,000 This is the primary ongoing CDBG rehab loan program targeted for homeowners with annual income of 50% or less of the median area income, or $41,450 for a household of 4, and assets less than $25,000. The rehab focuses on improvements to bring homes into code compliance and provide long- term maintenance free housing. The maximum loan amount is $25,000 and is forgiven after 15 years. Repayment is required if homeowners sell the property before the 15-year period expires. The demand for our low-income home improvement loans and grants continues to be high. Despite ongoing funding there is still a waiting list for the low income single family deferred loan program. Continued funding, along with the program income realized from repayment of previous CDBG deferred loans, should make it possible to serve three to five residents. This program is administered by Hennepin County Housing staff. Affordable Housing Land Trust – Homes within Reach $20,000 Homes within Reach is a program of West Hennepin Housing Land Trust that purchases homes and sells them to low income homeowners. Buyers pay for the cost of the building only and lease the land for 99 years. St. Louis Park funds are leveraged with Met Council and Hennepin County HOME funds, and Homes within Reach administers this activity. Homes within Reach have purchased twelve homes in the city that have been sold to low income families. St. Louis Park Housing Authority – renovation of a scattered site home - $23,359 The SLP Housing Authority provides housing to low income residents that are typically below 50% median income. The HA owns and manages 37 scattered site homes throughout the city. The HA has requested $23,359 to assist with replacing windows, new siding and a new roof at 4316 which is one of the single family scattered site homes. PPL Louisiana Court Apartments Water Main Replacement- $20,000 The Louisiana Court Apartments are a collection of 1960’s-era apartment buildings each housing between 12 -16 dwelling units. PPL serves residents with households earning less that 60% of area median income (AMI). Project ownership is committed to maintaining the integrity of this valuable, affordable housing resource and since 2000 has completed numerous, substantial upgrades to the premises. To date, eight of 11 water mains have been replaced on the premises. The remaining three PPL buildings requiring the upgrade are: 2711, 2740 and 2742. The project will tear out and install a new water main from the city street to the residential building. CDBG funds will assist in financing the water main replacement. Study Session Meeting of February 10, 2014 (Item No. 5) Page 4 Title: Proposed Allocation of 2014 Community Development Block Grant (CDBG) Funds Perspectives Louisiana Court Water Main Replacement - $20,000 This project involves the replacement of the water main that extends from the City’s main to 2753 Louisiana Court. The project also involves moving the present water meter to a more accessible location, as well as providing the necessary restoration after completion. Perspectives has incurred at least seven water main leaks to the Louisiana Court apartments during the past 10 years. These repairs have been very costly, ranging from $5,000 - $8,500. They have also been disruptive, as they involved tearing up the pavement and sidewalk. During this time, Perspectives has replaced the water mains at four of their five buildings. The 2753 apartment building currently houses twelve permanent housing families through HUD's Shelter + Care Rental Assistance program (the Housing Authority of St Louis Park administers this funding). Criteria for this housing is that residents are homeless and have a disability (chronic substance abuse) at program entry. In addition, all clients must meet income guidelines at program entry – they are at or below very low income (30 percent of medium adjusted income). All participants are single heads of household, with one to four children. Seventy-two percent are persons of color. CDBG funds will assist in financing this project. Public Service – SLP Park and Rec. Programming at Meadowbrook Manor Parks - $7,500 The Park and Recreation Department provides park programming to children at the Meadowbrook Manor Apartment Community. The $7,500 would provide an enhanced level of programming and ensure affordable registration fees. The youth park programming has been funded with CDBG funds since 2007. Meadowbrook Manor Park is CDBG eligible based on the poverty levels in this neighborhood. Study Session Meeting of February 10, 2014 (Item No. 5) Page 5 Title: Proposed Allocation of 2014 Community Development Block Grant (CDBG) Funds DRAFT RESOLUTION NO. 14 - ____ RESOLUTION APPROVING PROPOSED USE OF 2014 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS AND AUTHORIZING EXECUTION OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS WHEREAS, the City of St. Louis Park, through execution of a Joint Cooperation Agreement with Hennepin County, is cooperating in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the City of St. Louis Park has developed a proposal for the use of 2014 Urban Hennepin County Community Development Block Grant funds made available to it; and WHEREAS, the City held a public hearing on February 18, 2014 to obtain the views of citizens on housing and community development needs and priorities and the City's proposed use of $195,859 from the 2014 Urban Hennepin County Community Development Block Grant. BE IT RESOLVED, that the City Council of St. Louis Park approves the following projects for funding from the 2014 Urban Hennepin County Community Development Block Grant Program and authorizes submittal of the proposal to Hennepin County. BE IT FURTHER RESOLVED that the City Council hereby authorizes and directs the Mayor and its City Manager to execute the Subrecipient Agreement and any required Third Party Agreement on behalf of the City to implement the 2014 Community Development Block Grant Program. BE IT FURTHER RESOLVED, that should the final amount of FY2014 CDBG available to the city be different from the preliminary amount provided to the city, the City Council hereby authorizes the City Manager to adjust project budget(s) to reflect an increase or decrease in funding. Reviewed for Administration: Adopted by the City Council February 18, 2014 City Manager Mayor Attest: City Clerk Project Activity Allocation Low Income Single Family Emergency Repair Program $45,000 Low Income Single Family Home Rehab Loan $60,000 Affordable Housing Land Trust – Homes within Reach $20,000 St. Louis Park Housing Authority – Rehab for scattered site home $23,359 PPL – Water Main Replacement at Louisiana Court $20,000 Perspectives – Water Main Replacement at Louisiana Court $20,000 Public Service – Youth Park Programming at Meadowbrook Park $7,500 Total $195,859 Meeting: Study Session Meeting Date: February 10, 2014 Written Report: 6 EXECUTIVE SUMMARY TITLE: Highway 169 – Noise Wall Project RECOMMENDED ACTION: No action required. The purpose of this item is to provide Council with an update on MnDOT’s proposal to install a noise wall along the east side of Highway 169 between 14th and 16th Street West. POLICY CONSIDERATION: Is the City Council supportive of MnDOT undertaking this improvement? SUMMARY: In March 2011, MnDOT presented the City Council with various options for future noise walls and access closures along Highway 169. The locations were based on noise abatement studies and traffic safety initiatives. The plan that was presented included the proposed noise wall along the east side of Highway 169 from 14th to 16th Street W. (Figure 1). MnDOT and city staff returned last January to provide another update to the Council on this project. Council was comfortable with the public process proceeding on this improvement. In order to understand the level of resident support for the installation of noise wall in this location MnDOT staff held a public meeting on Wednesday, January 29. 106 properties were invited to attend the meeting, and 6 people attended. A comment card was available at the meeting. Six cards were returned, and all indicated support of the construction of the noise wall. This project will be brought to the City Council on February 18 to ask for a resolution of support. If approved, construction would begin in late summer 2014. FINANCIAL OR BUDGET CONSIDERATION: The noise wall north of 16th Street is a MnDOT led project with an estimated cost of $434,000. In accordance with MnDOT’s noise wall policy the City is responsible for 10% of the project cost, approximately $43,000. The City would use State Aid funding for this project. SUPPORTING DOCUMENTS: Figure 1 – Noise Barrier Graphic Figure 2 – Noise Barrier Analysis Prepared by: Debra M. Heiser, Engineering Director Reviewed by: Phillip Elkin, Senior Engineering Project Manager Approved by: Tom Harmening, City Manager Study Session Meeting of February 10, 2014 (Item No. 6) Title: Highway 169 – Noise Wall Project Page 2 Study Session Meeting of February 10, 2014 (Item No. 6) Title: Highway 169 – Noise Wall ProjectPage 3 Meeting: Study Session Meeting Date: February 10, 2014 Written Report: 7 EXECUTIVE SUMMARY TITLE: Highway 169 – W. 16th Street Access Closure RECOMMENDED ACTION: No action required. The purpose of this item is to update Council on MnDOT’s proposal to close the ramp access to Highway 169 at W. 16th Street in advance of MnDOT starting the public process on this matter. POLICY CONSIDERATION: None at this time. Please inform staff of any question or concerns you might have. SUMMARY: In March 2011, MnDOT presented the City Council with various options for future noise walls and access closures along Highway 169. The locations were based on noise abatement studies and traffic safety initiatives. The plan that was presented included the proposed noise wall along the east side of Highway 169 from W. 14th to W. 16th Street as well as the proposed access closure at W. 16th Street (Figure 1). At the January 13, 2014 study session staff provided a brief update on this matter. The potential access closure at W. 16th Street is being considered separately from the noise wall because of separate funding sources and different property owner concerns. The timeline MnDOT has provided for this closure proposal is approximately one month behind the schedule for the noise wall, but if approved would be implemented at the same time as the noise wall north of W. 16th Street. The proposed closure is a part of MnDOT’s long term safety initiative for Highway 169. This proposed project includes the installation of a 10 ft. high visual barrier wall along the east side of Highway 169 from W. 16th Street south to the edge of wetland/City property. This would be similar to the closure that occurred at W. 22nd and 23rd Streets along Highway 169 in 2012. Both the ramp closure and the visual barrier wall would be fully paid for by MnDOT. MnDOT staff would like to begin the public process to understand the level of resident and council support for the closure of the ramp access for Highway 169 at W. 16th Street. To kick off the process, MnDOT will hold an open house for this project at the end of February. A traffic study has been completed to understand the traffic impacts to the closure of W. 16th Street at Highway 169. The study indicates that there are only minor impacts to traffic conditions of the surrounding roadways and intersections. FINANCIAL OR BUDGET CONSIDERATION: The closure of the Highway 169 ramp access at W. 16th Street is a MnDOT led project with an estimated cost of $800,000. Both the ramp closure and the visual barrier wall would be fully paid for by MnDOT. SUPPORTING DOCUMENTS: Figure 1 - 16th Street Graphic Prepared by: Debra M. Heiser, Engineering Director Reviewed by: Phillip Elkin, Senior Engineering Project Manager Approved by: Tom Harmening, City Manager ÑÐ TEXAS AVERH ODE ISL AND AVEWAYZAT A B L V D 2 8 T H S T F O R D R D S HELARD PKWY 31ST ST C LUB RD 26TH STMELROSEAVEFRANKLINAVE VIRGINIA CIR 22ND ST 2 9T H S T 25TH S T18THST QUEBEC AVEUTAH AVESUMTER AVEAQUILAAVE2 2N D S T WAYZATA BLVD TEXAS AVEFL AGA V E FORD RDCEDAR L A K E R D 16T H ST 32ND STWESTWOODHILLSDRWESTWOOD HILLSDR30 1/2 ST 14TH ST BOONEAVEBOONEAVE WE ST M ORELANDLNUTAHDRQUE B ECA VE Q UEBECAVEX YLONAVEXYLON AVEXYLON AVE22ND LNJORDAN AVEUTAH AVEUTAHAVESUMTERAVEBURD PL S TANLEN RD CA V E L L AVECAVELL AVECAVELL AVEKILMER AVEKILMERAVEPARKE RRD 13TH LN 13TH LN WYOMINGAVE13 1/2 ST FORD LN INDEPENDENCEAVEINDEPENDENCEAVEINDEPENDENCE AVE24TH ST W VIRGINIAAVE VIRGINIAAV E VIRGINIA AVEY U KONAVEGETTYSBURGAVEH ILLSBOROAVEHI L LSBOROAVEHILLSBOROAVELANCASTERAVEDECATURAVEDECATUR AVELNFAIRWAYLNENSIGNAVETE X A TONKAAVEPRKR24TH LN WESTWOODHILLS CRV BOONECTTEXAS CIR FORD CIR 28TH S TAQUILAA VE 31ST STAQUILAAVEFLAG AVE24TH ST 22ND ST 14T H S T FLAG AVE1 6 T H ST ZINR AN AVE31STST 23RD ST 18TH ST 25TH ST 1 8 T H S T 24TH ST 23RD ST 23RD ST FR A N K L I N A V E 16TH ST COBBLECREST CTProposed MNDOT Highway 169 and 16th StreetNoise Wall, Visual Barrier Wall, and Ramp Closure Created 1/7/14by Luke Ingram M 0 840 1,680 2,520 3,360Feet MNDOT Proposed Projects ÑÐ 16th St. Northbound Ramp Closure 16th St. Visual Barrier Wall 16th St. Noisewall HWY 394 HWY 169Cedar Lake Rd MinneapolisGolf ClubGeneral Mills Blvd.Study Session Meeting of February 10, 2014 (Item No. 7) Title: Highway 169 – W. 16th Street Access Closure Page 2 Meeting: Study Session Meeting Date: February 10, 2014 Written Report: 8 EXECUTIVE SUMMARY TITLE: EDA Redevelopment Contract Status Report RECOMMENDED ACTION: None. POLICY CONSIDERATION: Not applicable. SUMMARY: The attached report summarizes the current status of various redevelopment projects in the city to which the EDA is a party. Its purpose is to apprise city officials of any current issues or anticipated actions that may need to be considered relative to corresponding redevelopment contracts. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: EDA Redevelopment Contract Status Report Prepared by: Julie Grove, Economic Development & Planning Assistant Greg Hunt, Economic Development Coordinator Reviewed by: Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, EDA Executive Director and City Manager EDA Redevelopment Contract Status Report Februrary 2014 138 market rate apartments 12/1/2015 0% Leased Construction has not commenced. Pending Contract Actions : 58 market rate apartments 3/1/2014 98% leased Building completed. Building renovation 12/1/2012 100% Leased Building renovation complete and is leased to House of Sport . Pending Contract Actions : 18,000 SF building renovation 12/1/2011 100% Leased Building renovation complete and is leased to 5 businesses with a total of 32 employees Pending Contract Actions : (CKJ Properties, LLC) Entirety of Construction Assistance issued. Monitoring remaining contract compliance. Status of Lookback: NA 6414/6416 W. Lake Rd-former Home Hardware (CAR Properties) Entirety of Construction Assistance issued. Monitoring remaining contract compliance. Status of Lookback: NA Former Bikemasters Bldg Renovation Pending Contract Actions : Developer needs to submit qualified costs in order for the EDA to issue TIF Note. Monitoring Green Policy compliance. Status of Lookback: Lookback to occur prior to issuance of TIF Note. Developer is earnestly seeking project financing. Hunt needs to provide School District with an executed construction contract by March 5th or purchase agreement will be terminated. Status of Lookback: Lookback would occur upon project reaching 95% lease-up. e2 -“Ellipse on Excelsior II” (Bader Development) Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status Eliot Park Apartments (Hunt Associates) Page 1 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 2 EDA Redevelopment Contract Status Report Februrary 2014 33,600 SF building renovation 12/31/2012 100% Occupied Building renovations completed. Hardcoat is fully operational. 115 senior assisted living rentals 12/31/2012 61% Leased 10,000 SF retail space 12/31/2012 75% Leased 132 market rate apartments 3/1/2011 96% 16,394 SF commercial 3/1/2011 100% Leased 67,000 SF medical office bldg 6/30/2009 100% Occupied by PN Building completed. Status of Lookback: Completed; no adjustment to TIF Note required. Melrose Eating Disorders Institute (Park Nicollet Methodist Hospital) Pending Contract Actions : None. Status of Lookback: Lookback will occur once building reaches 95% lease-up. Ellipse on Excelsior (Bader Development) Building completed. Pending Contract Actions : None TowerLight (formerly Wooddale Catered Living) (Greco Development) Building completed. Pending Contract Actions : Stormwater drainage issue needs to be rectified before TIF Note can be issued. Former Flame Metal Bldg Renovation (Hardcoat Inc) Pending Contract Actions: Entirety of Construction Assistance issued. Staff is monitoring remaining contract compliance. Status of Lookback: NA Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status Page 2 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 3 EDA Redevelopment Contract Status Report Februrary 2014 Leasing actively continuing. Baker & Associates leased 20,122 SF of office space. 120 unit apt.bldg. (The Flats at West End)12/31/2016 100% Leased Construction completed spring 2013. 1.1 million SF office space between 3 or 4 Class A office bldgs. 6/1/2021 0% Leased Construction will likely commence on first bldg once an anchor tennant is secured. Lake St Office Center 4,000 SF medical office building 12/31/2009 100% Leased Building completed. Pending Contract Actions : Status of Lookback: None. DEED Contamination Cleanup Grant successfully closed in September 2011. To be completed. Pending Contract Actions : The initial TIF Note was approved 5/17/10. Redeveloper has indicated it may request the TIF Note be reissued as two separate Notes; this would require EDA action. Status of Lookback: Lookback will occur once buildings reach 95% lease-up, the date of any transfer or three years after issuance of Certificate of Completion. C of C was issued 2/12/13. (Real Estate Recycling) 350,000 SF retail/restaurant 6/1/2010 79% Leased 28,00 SF 2nd floor office space 6/1/2010 100% Leased Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status The West End (Duke Realty) Page 3 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 4 EDA Redevelopment Contract Status Report Februrary 2014 (Real Estate Recycling) 79,000 SF office/tech bldg 12/31/2007 84% leased Building completed. Pending Contract Actions : Status of Lookback: Hoigaard Village “Harmony Vista” – 74 units, 2/28/2008 92% leased Building completed. 25,000 SF retail 90% leased “The Camerata” – 220 units 9/1/2008 90% leased Building completed. “The Adagio” – 100 units 12/31/2013 55% leased Building completed. “Medley Row” – 22 townhomes 12/31/2013 46% leased Building completed. Pending Contract Actions : Status of Lookback: 27-unit loft condo building 12/31/2006 100% Sold Building completed. 14-unit townhouse building 12/31/2006 100% Sold Building completed. 5 single family houses 12/31/2006 100% Sold Aquila Commons 106 unit senior housing cooperative 12/31/2007 98% Sold Building completed 2 units remain unsold. units. Pending Contract Actions : Staff is monitoring compliance with income requirements. Monitoring will cease upon sale of last Status of Lookback: Lookback to occurr upon sale of all units. To occur three years after the issusance of the final Certificate of Completion. Brookside Lofts (Master Dev & Foundation Land) Pending Contract Actions : None (Stonebridge Dev) Highway 7 Corporate Center None. The long term future of the Purple Parking Lot is subject to SWLRT planning and the Gold Parking Lot is subject to Highway 7 & Louisiana Avenue interchange construction. Completed; no adjustment to TIF Note required. DEED Contamination Cleanup Grant successfully closed. (Union Land II Dunbar Development ) Final TIF Notes of $820,000 and $200,000 related to last two stages to be authorized and issued. Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status Page 4 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 5 EDA Redevelopment Contract Status Report Februrary 2014 78 Townhomes 6/1/2007 100% Sold Building completed. 66 loft-style condominiums 6/1/2007 100% Sold Building completed. 60 senior condominiums 6/1/2007 100% Sold Building completed. 79,000 SF office/warehouse 12/4/2004 100% Leased Building completed. 2-story, 54,742 SF office bldg 3/31/2004 96% Leased Building completed. 1-story, 10,038 SF commercial “West” bldg 5/31/2005 100 % Leased Building completed. None. Pending Contract Actions : None Status of Lookback: Completed; no adjustment to TIF Note required. DEED Contamination Cleanup Grant successfully closed. Wolfe Lake Professional Center (Belt Line Industrial Park, Inc) Status of Lookback: Completed; no adjustment to TIF Note required. Edgewood Business Center (Real Estate Recycling) Pending Contract Actions : Village In The Park (Rottlund Homes) Pending Contract Actions : TIF Note paid off February 1, 2010. Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status Page 5 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 6 EDA Redevelopment Contract Status Report Februrary 2014 Phase I – 338 apts, 62,700 SF retail space 7/1/2003 Apts 91.2% Leased.Building completed. Phase NE-124 Condos, 4,500 retail space 4/30/2006 Condos 100% Sold.Building completed. Phase E – 86 condos & 14,235 SF retail space 4/1/2006 Retail 91% Leased.Building completed. Phase NW – 96 condos, up to 5,000 SF retail space 6/1/2007 Condos 100% Sold.Building completed. 30 condos & 11,200 SF commercial space 12/1/2001 100% Sold & Leased Building completed. 200 market rate apartments 6/1/2002 99% leased Building completed. Zarthan & 16th Street Marriott Springhill Ste-127 units 3/1/2002 Hotel Building completed. Marriott TownePlace Ste-107 units 8/1/2001 Hotel Building completed. 86 owner occupied townhomes 1/1/2003 100% Sold Building completed. (CSM Hospitality & Rottlund Homes) Pending Contract Actions : None. Pending Contract Actions : None. DEED Contamination Cleanup Grant successfully closed. Louisiana Oaks (MSP Real Estate) Pending Contract Actions : None. DEED Contamination Cleanup Grant successfully closed. (TOLD Development) Pending Contract Actions : None. Fern Hill (Park Land Company) Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status Excelsior & Grand Page 6 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 7 EDA Redevelopment Contract Status Report Februrary 2014 45 unit assisted living facility 6/1/2001 100% Occupied Building completed. 72 duplex townhomes 12/1/2002 100% Sold Buildings completed. 49,310 SF medical office 5/7/2001 100% Occupied Building completed. 50,690 SF medical office 12/31/2006 Building was not completed. 45,000 SF medical office 12/31/2010 Building was not completed. Pending Contract Actions : Contract terminated upon last TIF payment on 8/1/12; TIF district was decertified 7/1/13. (SVK Development) Pending Contract Actions : Contract terminated upon last TIF payment on 8/1/13; TIF district was decertified 11/18/13. PNMC – Phase II (Park Nicollet Health Services) Park Center (Silver Crest Properties) Pending Contract Actions : Staff is monitoring Redeveloper’s adherence to renter income restrictions as specified in Contract. Victoria Ponds Project (Developer) Required Completion Date Percent Sold &/or Leased Current Project Status Page 7 of 7 Study Session Meeting of February 10, 2014 (Item No. 8) Title: EDA Redevelopment Contract Status Report Page 8 Meeting: Study Session Meeting Date: February 10, 2014 Written Report: 9 EXECUTIVE SUMMARY TITLE: Annual Open to Business Program Update RECOMMENDED ACTION: None POLICY CONSIDERATION: This report provides an annual update on the Open to Business program which provides small business technical assistance services to St. Louis Park businesses and residents. SUMMARY: Under its contract with the EDA, the Metropolitan Consortium of Community Developers (MCCD) is required to provide periodic updates detailing the small business technical services provided in St. Louis Park under its Open to Business program. The last update provided information on the program for activities during the first half of 2013. This latest update covers activities from January to December 2013. During the past year, MCCD staff met with 29 would-be entrepreneurs and existing small businesses seeking assistance with a wide variety of business ventures. In that period MCCD provided 120 hours of service in the city. These services included business entity advice, business plan development, loan packaging, feasibility analysis, lease review/negotiations, strategic planning, business purchase evaluation, operations and logistic planning, cash flow analysis, network referrals, record keeping, marketing, personal financial planning, real estate analysis, registration, licensing and regulatory. The “Test Drive Your Business Idea” counseling sessions continue to experience increasing activity and are expected to accelerate as word of the program continues to spread. In 2013, the Open to Business program provided a $12,000 loan for a St. Louis Park guitar shop to increase inventory; worked with a local resident to develop and implement a business plan as well as access start-up capital to start a tap room in Minneapolis; assisted a local entrepreneur assemble financial projections and secure a $40,000 loan. Last year a total of 21 jobs were retained or created as a result of the Open to Business program in St. Louis Park. Counseling sessions occur the fourth Monday of each month from 9 a.m.to 11 a.m. at City Hall or by appointment at the place of business. There is no charge to those receiving these services. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Annual Report from MCCD Prepared by: Julie Grove, Planning & Economic Development Assistant Greg Hunt, Economic Development Coordinator Reviewed by: Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager and EDA Executive Director Study Session Meeting of February 10, 2014 (Item No. 9) Page 2 Title: Annual Open to Business Program Update City: Time Frame: Clients Served: New Entrepreneur/Start-up 16 Existing Business 13 Total 29 How did client hear about OTB: • Municipality (newsletter) 16 • Friends/Family 3 • Entrepreneur 2 • Bank Referral 2 • Internet 4 • Other 2 Direct & Facilitated Financing closed: # of loans 3 Amount $102,000 Capital Leveraged: $116,000 Jobs retained or created from OTB closed loan clients: 21 Program related hours TA/Admin: 120 Types of Services Provided: Business feasibility Business plan development Business Purchase evaluation Lease review/ negotiation Loan packaging Strategic planning Operations and logistic planning Record keeping Network/referrals Regulatory assistance Real estate analysis Cash flow analysis/ projections Personal Financial planning Marketing Business registration/ licensing St. Louis Park 1/1/13-12/31/13 Industry Segment: Service 15 Retail-general merchandise 8 Retail-food related 3 Manufacturing-other 2 Technology 1 Types of Businesses: Family and Marriage therapists Micro distillery Personal training facility Dog walking, pet sitting Efficiency consultant Micro Brewer - Tap Room Sports products Clothing alteration Political consulting Anodizing metal business Marketing and advertising Home staging Professional design collective and Retail Boutique Software developer Track and field club Staffing for Life Science Industry Coffee Shop Bike store Corporate consulting Marketing and advertising Guitar supply store Study Session Meeting of February 10, 2014 (Item No. 9) Page 3 Title: Annual Open to Business Program Update Client Highlights: El Diablo Inc. Business Type: Amps & guitar store Location: 6415 Walker St Referred by: Entrepreneur OTB Financing: $12,000 Jobs created/retained: 1 El Diablo, Inc. retails high-end “boutique” music gear. In 2012, owner Alan Estevez moved the business from his home to a small showroom in St. Louis Park. With sales growing, Alan needed to purchase additional inventory. OTB provided the business with a $12,000 loan to help him increase his inventory. Technical assistance also was provided to help the entrepreneur develop a staged growth plan. Sisyphus Brewing Business Type: Retail Tap Room Location: Minneapolis Referred by: Municipality Other Financing/Equity: $116,000 Jobs created/retained: 2 Helped St. Louis Park resident develop and implement a business plan to develop a retail tap room. Worked with entrepreneur on accessing the start-up capital and advised on real estate, regulatory and build out issues. He is currently of going through the licensing process and plans to open the tap room in April 2014. Pellicano Endurance Coaching Business Type: Personal Training Facility Location: 4930 35th St. W Referred by: Banker Other Financing/Equity: $40,000 Jobs created/retained: 2 Danielle Pellicano had been in business as a professional athletic coach since 2007 and wanted to find a space of her own. Open to Business advisor referred her to a realtor who found a space for her in St. Louis Park. Our advisor helped her put together financial projections including a cash flow and presented her request on her behalf to Park State Bank. She was approved for a $40,000 loan that enabled her to move to her current location. OTB continues to provide assistance with bookkeeping issues and general business issues acting as an advisor and sounding board for ideas. Her revenues increased 66% last year from the previous year. Testimonial from St. Louis Park client: “Thanks, Rob! That's fabulous and very helpful! The numbers certainly support the idea that folks are spending a big chunk of their food dollar away from home.” Email from SLP client after receiving some market analysis information – 2/5/13