HomeMy WebLinkAbout2014/09/29 - ADMIN - Agenda Packets - City Council - JointMeeting: Joint City Council/School Board Meeting
Date: September 29, 2014
Discussion Item: 1
EXECUTIVE SUMMARY
TITLE: Joint City Council/School Board Meeting
RECOMMENDED ACTION: None
POLICY CONSIDERATION: None at this time
SUMMARY: Periodically, the City Council and School Board meet to discuss topics or issues
of interest at the time. To prepare the agenda for the joint meeting Monday night, the Mayor and
School Board Chair met with City and School District staff to discuss possible topics. For this
joint meeting the primary focus will be on:
• Relational Learning
• Update on School District enrollment and diversity
• Update on the City’s recently adopted Housing Policy and future housing development.
• Update on the school expansions being undertaken by the District
• Update on Community Center Project
• Update on School District branding efforts
This is a lot of ground to cover, and Bridget Gothberg will facilitate the conversation to keep
things moving along.
The meeting will be in the Council Chambers with dinner at 5:30 pm and the meeting starting at
6:00 pm.
Attached is the agenda for the meeting and a number of documents which provide background
on the topics and will serve as a resource at the meeting
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Agenda and related resource materials
Prepared by: Tom Harmening, City Manager
Joint Meeting/Learning Session
St. Louis Park City Council and School Board
AGENDA
City Council Chambers
5:30 p.m. – Dinner
Meeting Starts at 6:00 p.m. – Closure at 8:30 p.m.
Monday, September 29, 2014
Outcomes:
• To continue to develop a high performing partnership
• To exchange updates
1. Introductions and Remarks from the Mayor and School Board Chair (4 minutes)
2. Ground Rules (2 minutes) see attachment A
3. Relational Learning (20 minutes)
4. Student Update: current enrollment, diversity, etc. (20 minutes) see attachment B
5. City Housing Development and Policy: short term and long term (25 minutes)
see attachment C
6. School Construction Update: current and future needs including Lenox and the
three elementary schools where construction is taking place--PH, SL and AQ.
(20 minutes)
7. City Community Center Project Update: (20 minutes) see attachment D
8. School District Branding (25 minutes)
9. Others: Requests, Compliments, Updates forgotten etc. (10 minutes)
10. Adjournment at 8:30 p.m.
Future topics: Planning for Light Rail, School District/ City diversity conversation, etc.
Joint City Council & School Board Meeting of September 29, 2014 Page 2
Joint Meeting/Learning Session
St. Louis Park City Council and School Board
Ground Rules
• Honor the purpose of the meeting: to continue developing a high
performing partnership and to learn from each other
• Listen to others
• Honor our tight and positive agenda
• Show respect
• Speak for yourself, no one else
• Take charge of yourself, be responsible for you
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 2)
Title: Ground Rules Page 3
Attachment A
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 4)
Title: Student Update Page 4
Attachment B
Joint City Council & School Board Meeting of September 29, 2014 Title: Student UpdatePage 5
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5) Title: City Housing Development and Policy - Short Term & Long Term Page 6Attachment C
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5) Title: City Housing Development and Policy - Short Term & Long Term Page 7
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5) Title: City Housing Development and Policy - Short Term & Long Term Page 8
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5) Title: City Housing Development and Policy - Short Term & Long Term Page 9
St. Louis Park Housing Matrix June 30, 2014 Housing Units by Type Large Single Family Homes, Affordable, and Senior Housing Housing Type Housing Units Net Units added in 2014 Owner Occupied (Homestead) Non Homesteaded and/or Rental Large Single Family Homes 2014 Affordable Market Rate Owner Occupied Units 2013 Reported Affordable Market Rate Rental Units** Public Subsidized Affordable Units, Includes Section 8 Housing Units Senior Designated Single Family Detached 11,638 49% 4 10,659 979 2,124 1,239 58 55 0 Duplex 424 2% 0 146 278 82 0 0 Condos and townhomes 3388 14% 0 2251 1137 1,457 111 0 0 Apartments* 8,503 35% 0 0 8,503 4,557 1,036 923 COOPs 114 <1% 0 114 0 42 106 Totals 24,067 100% 412 13,170 55% 10,897 45% 2,124 18% 2,696 9% 4,808 20% 1,133 5% 1,029 4% The percentage of owner occupied (homesteaded) units to rental or non-owner occupied (non-homesteaded) units has shifted from the 60 homesteaded/40 non-homesteaded ratio of the early 2000's. This is due in part to a change in homestead status of approximately 1,200 condominium and townhouse units since the early 2000s and the addition of new multi-family rental units. In 2011 the Met Council revised the affordable housing income standard. Rather than using 50% MAI for rental and 80% MAI for ownership, the new affordable definition is that housing is affordable to households with incomes at or below 60% MAI ($49,400 for a family of four in 2014) paying thirty percent of their income for housing costs whether renting or owning. The 2014 affordable purchase price is $166,000 or less. For 2013, a monthly rent of $1,111 or less for a 2 bedroom apartment for a family of four is considered affordable. **Reported Affordable Market Rate Rental Units based on 2012 SLPHA Rental Study and 2013 Maxfield Research Study. This information is only updated annually, and will be updated for the 2014 Annual report. Data source: SLP Community Development, Development Activity in St. Louis Park, SLP Inspections and Assessing. Joint City Council & School Board Meeting of September 29, 2014 (Item No. 2) Title: City Housing Development and Policy - Short Term & Long TermPage 10
Project Developer Planning
Approval Type Total Units Status/ Completion
Parkside Urban Flats
460 Ford Rd Lovering Johnson 2003 Condo 48 Condos (70 units approved)Completed
E&G Phase 1 TOLD Apartment 320 Completed 03
E&G Phase 2 TOLD Condo 120 Completed 04
Aquila Commons
8200 W 33rd St Brad Friez 2004 Condo 106 Completed 07
Brookside Lofts
4100 Vernon Ave S Master Development 2004 Condo & Single Family 27 Condos /14 Twnhms / 5 SF Completed 07
E & G - E (phase 3)
3820 Grand Way TOLD 2004 Condo 86 Completed 06
Village in the Park
3600 Wooddale Ave S Rottlund Homes 2004 Condo & Townhome 66 Condos /60 Sr. Condo / 78 Twnhms Completed 07
Westmarke Condos (Lurie)
1155 Ford Rd Brad Friez 2004 Condo 65 Completed 07
E & G NW (phase 4)
3820 Grand Way Bob Cunningham TOLD 2005 Condo 96 Completed 07
West Oak Condos
3251 Louisiana Ave Mendota Homes 2005 Condo 75 Completed 2007
McGurgan (owner)
4525 W 4th St
Cornerstone Custom Const.
(Builder)2006 Single-Family 1 Completed 2007
Hoigaard Village Harmony Vista & Camerata
5650 W 36th St Frank Dunbar 2006 Apartment 78 Unit Apt / 220 Unit Apt Completed 2008
Inglewood Condos
3125 Inglewood Ave Andrew Brenner 2006 Condo 6 Completed 2008
Park Place II Apartments "The Gables"
1361 Hampshire Ave S Bigos 2006 Apartment 49 Constructed 2008
Anna & Joel Thompson(owner)
4515 W 42nd St C.B. Hadley (Builder)2007 Single-Family 1 Completed 2008
Richard & Adrienne Harrison (Owner) 2600
Natchez
Creek Hill Custom Homes
(Builder)2008 Single-Family 1 Completed 2009
Ellipse
3920 Excelsior Blvd Bader 2008 Condo 132 Complete 2011
TowerLight
3601 Wooddale Ave S Greco 2008 Senior Apartment 115 Completed 2013
The Flats at West End
5310 16th St West The Excelsior Groups 2010 Apartment 119 Completed 2013
Shaun Smith (Owner)
2005 Louisiana
Andrew Hewey Const.
(Builder) 2010 Single-Family 1 Completed 2011
Hoigaard Village Medley Row & The Adaigo
5650 W 36th St Frank Dunbar 2011 Apartment & Rowhomes 22 Rental Rowhomes / 100 unit Apt Completed 2013
36 Park (Park Summit)
3601 Park Center Blvd EJ Plesko 2011 Apartment 192 Unit Apt Completed 2012
Eldridge 1st Addition Rob Eldridge 2011 Single-Family 4 new SF lot
(5 SF lots total) Constructed 2012
Fretham 12th Add Curt Fretham 2011 Single-Family 5 new SF lots
(6 SF lots total)Constructed 2013
Gateway Assisted Living
7115 Wayzata Blvd Viren Gori 2012 Assisted Living 22 Complete 2014
Calhoun Apt Homes
Cty Rd 25 & Inglewood Ave Andrew Brenner 2012 Apartment 7 Completed 2014
E2
3920 Excelsior Blvd Bader 2012 Apartment 58 Completed 2013
Kaiser Subdivision Rob Eldridge 2012 Single-Family 2 Constructed 2013
Eliot
6800 Cedar Lake Rd Dan Hunt 2013 Apartment & Single-Family 138 Apt units / 3 SF Under Construction
Wooddale Flats
3998 Wooddale Ave S Gatehouse Prop Ltd 2013 Condos 33 Under Construction
Fretham 14th Addition Curt Fretham 2013 Single-Family 1 new lot created (2 SF lots total)Completed 2014
Millenium at West End
1621 West End Blvd DLC Residential 2014 Apartment 158 Under Constuction
Eldridge 5th Addition
7701 Edgebrook Rob Eldridge 2014 Single-Family 1 Under Construction
5609 Wood Ln Gavin May 2014 Single-Family 1 Under Construction
4101 31st St Apts
4101 31st St Josh Brandsted 2014 Apartment 13 Approved 9/1/14
Total Units Added since 2003 Units Completed in 2005 thru 2010
Single Family 26 8
Condo 860 527
Townhome Ownership 92 92
Townhome Rental 22 0
Apartments 1452 667
Senior Apartments 115 0
Senior Assisted Living 22 0
Senior Condos 60 60
Total Units Added since 2003 2649 1354
Housing Development Project List
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 11
EXECUTIVE SUMMARY
1 MAXFIELD RESEARCH INC.
Comprehensive Housing
Needs Analysis for
St. Louis Park, Minnesota
__________________________________________________________
June, 2013
Prepared for:
City of St. Louis Park
St. Louis Park, Minnesota
Maxfield Research, Inc.
1221 Nicollet Mall
Suite 218
Minneapolis, MN 55403
612.338.0012
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 12
EXECUTIVE SUMMARY
1 MAXFIELD RESEARCH INC.
Overview of Study
The primary objective of the Comprehensive Housing Needs Analysis for St. Louis Park is to
provide the City of St. Louis Park and St. Louis Park Housing and Redevelopment Authority with
a market‐based analysis that will identify current and future housing needs in the City. The
assessment will help decision‐makers, both public and private, develop a greater understanding
of the community’s housing market. The housing needs assessment provides recommenda‐
tions guiding future housing for existing and future residents and the tools/policies to imple‐
ment the plan.
The housing needs assessment lays out the demographic, economic, and housing market
performance in St. Louis Park for expanding housing opportunities. The analysis is the first step
in addressing local housing issues and is intended to lay the groundwork for establishing hous‐
ing goals, priorities, and strategies for meeting the demand. Furthermore, the analysis will
assist local builders/developers and financial institutions through streamlining their respective
due diligence process.
Key Findings
1. Population and household growth is projected to be higher this decade than the last. New
growth will result from infill and redevelopment opportunities in mostly higher‐density
housing types. Single‐family infill will continue to be in high demand, but will be contingent
on site availability.
2. The largest age cohort in St. Louis Park is adults between 25 and 34 years old, accounting
for 23% of the city’s population. Together with young adults ages 18 to 24, one‐third of the
population is between 18 and 34. This demographic consists primarily of renters and first‐
time home buyers.
3. The aging baby boomer generation is substantially impacting the composition of St. Louis
Park’s population. This demographic is projected to have the highest growth and will be
aging into their young senior years later this decade. This shift will result in demand for al‐
ternative housing products.
4. Household sizes are shrinking and the largest household type is persons living alone while
married couple households (with and without kids) continues to decrease. This shift is ex‐
pected to continue due to shifting demographics (i.e. delayed marriages, fewer children,
aging of the population, etc.)
5. Approximately 88% of St. Louis Park’s single‐family housing stock was constructed prior to
1960. As a result the homes are located on smaller lots and have smaller square footages
compared to buyers needs today. Continued promotion of the City’s housing programs
should be a priority to encourage reinvestment into the housing stock.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 13
EXECUTIVE SUMMARY
1 MAXFIELD RESEARCH INC.
6. Over the past year, St. Louis Park has experienced significant new luxury apartment devel‐
opment. Four new projects consisting of over 430 units were constructed in 2013, with ad‐
ditional units either under construction or planned. New market rate rental move‐up prod‐
uct has opened up more affordable units to moderate‐income households. As multifamily
housing has led the real estate recovery, St. Louis Park has been a highly sought community
by developers and investors. Continued demand in this sector is projected along the future
Southwest LRT line and other desirable locations.
7. Due to the age of St. Louis Park’s rental housing stock, the majority of the units have month‐
ly rents that are affordable to households earning 50% to 60% of Hennepin County AMI.
Among the 6,000 market rate units inventoried, nearly 45% of the units area affordable to
householders at 50% AMI. Together with 26% of the units affordable at 60% AMI, 71% of
the market rate rental housing inventory is affordable at 50% to 60% AMI.
8. Although the St. Louis Park for‐sale market experienced pricing declines after the real estate
boom deflated, St. Louis Park pricing fared much better than most communities in the Met‐
ro Area. The median sales price has increased annually since 2011 and the local real estate
market activity swelled in the summer of 2013. The percentage of lender‐mediated proper‐
ties peaked in 2011 (40%) but continues to wane as the housing market recovers.
9. Strong housing demand is projected through 2025. Over this time, demand is projected for
over 2,600 general‐occupancy units and 750 senior housing units. However, not all demand
may be realized as new housing will result from replacement need, infill, and redevelop‐
ment.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 14
EXECUTIVE SUMMARY
1 MAXFIELD RESEARCH INC.
Purpose and Scope of Study
Maxfield Research Inc. was engaged by the City of St. Louis Park to conduct a Comprehensive
Housing Needs Analysis for the City of St. Louis Park. The Housing Needs Analysis provides
recommendations on the amount and types of housing that should be developed in order to
meet the needs of current and future households who choose to reside in the City.
The scope of this study includes: an analysis of the demographic characteristics of the City; a
review of the characteristics of the existing housing stock and building permit trends; an
analysis of the market condition for a variety of rental and for‐sale housing products; and an
assessment of the need for housing by product type in the City. Recommendations on the
number and types of housing products that should be considered in the City are also supplied.
Demographic Analysis
• As of the 2010 Census, the City of St. Louis Park had 45,520 people and 21,743 households.
The City of St. Louis Park is forecast to add an additional 3,900 people and 2,007 households
between 2010 and 2020.
• The population in St. Louis Park is aging and older age cohorts are accounting for an increas‐
ingly significant percentage of the total population. Baby boomers (comprising the age
groups 45 to 54 and 55 to 64 in 2010), accounted for an estimated 24.0% of the City’s popu‐
lation. Over the next five years, the age 65 to 74 cohort will have the highest growth by
percentage and numerically (691 people, or 24.9%). The growth in this age cohort can be
primarily attributed to the baby boom generation aging into their young senior years. In
addition, the 85+ age cohort also experienced a significant growth between 2000 and 2010,
increasing by 22.7%, or 260 people, and is projected to increase another 9.1%, or 137 peo‐
ple, over the next five years.
• People identifying as Non‐Hispanic White comprised the largest proportion of the popula‐
tion of the City at 83.3% in 2010. This category is by far the largest, but has decreased
slightly from 88.9% in 2000 to 83.3% in 2010.
• Although Hispanics/Latinos comprised only 4.3% of the population in 2010, there was a
50% increase between 2000 and 2010. The Black/African American population also saw a
significant increase between 2000 and 2010, increasing from 4.4% of the City’s population
(1,930 people) to 7.5% of the City’s population (3,372), an increase of 74.7%, or 1,442 peo‐
ple.
• St. Louis Park had an estimated median household income of $52,378 in 2013. It is project‐
ed to increase over the next 5 years to $60,781 in 2018 (+16%).
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 15
EXECUTIVE SUMMARY
1 MAXFIELD RESEARCH INC.
• Median incomes for households in St. Louis Park peak at $66,714 for the 45 to 54 age group
in 2013. Households in this age group are in their peak earning years. The greatest per‐
centage of households (73.8%) in this age group is homeowners. By 2018, the median in‐
come for the 45 to 54 age group is projected to increase to $79,278, 18.8% increase.
• Senior households with incomes greater than $30,000 can afford market rate senior hous‐
ing. Based on a 40% allocation of income for housing, this translates to monthly rents of at
least $1,000. About 2,473 senior households in St. Louis Park had incomes above $30,000 in
2013.
• Between 2000 and 2010, homeownership rates decreased from 63.6% to 60.7% in the City
of St. Louis Park.
• Between 2000 and 2010, St. Louis Park experienced an increase in all types of households
except families that are married with children (‐5.9%) and those married without a child (‐
5%).
• Persons Living Alone grew significantly over the past decade, adding 837 households
(10.6%). This could indicate an aging senior population. As the frailty level of these seniors
increases, they typically move out of their homes in pursuit of housing with services.
• A household in the City of St. Louis Park has an average net worth of $395,744 in 2013,
about 41% lower than the average net worth of a householder in Hennepin County. St. Lou‐
is Park has a median net worth of $56,325 in 2013, about 50% lower than the average net
worth in Hennepin County.
Housing Characteristics
• The City of St. Louis Park issued permits for the construction of 1,575 new residential units
from 2000 through 2012. That equates to about 121 units annually since 2000. Through
2007, the City of St. Louis Park issued about 72% of the overall permitted units for the peri‐
od. Over this period, residential construction averaged about 140 units per year. However,
beginning in 2007, building permits declined rapidly, and from 2007 through 2011 the City
has averaged only 9 units per year.
• Over 91% of the units (1,436) since 2000 have been multifamily homes with the remaining
(139) being single‐family homes.
• Over the past 13 years, the average number of demolitions has averaged five housing units
annually. The most common purpose of the demolition permits is to tear down an older
home and rebuild a newer infill home.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 16
EXECUTIVE SUMMARY
3 MAXFIELD RESEARCH INC.
• St. Louis Park’s single‐family homes are older compared to Hennepin County and the Metro
Area. Approximately 88% of St. Louis Park’s single‐family homes were built in 1960 or be‐
fore compared to 53.0% and 38.0% in Hennepin County and the Metro Area, respectively.
• Approximately 41% of all renter‐occupied units are located in structures with 50 or more
units.
• Approximately 79% of St. Louis Park homeowners have a mortgage. About 30% of home‐
owners with mortgages in St. Louis Park also have a second mortgage and/or home equity
loan. Comparatively, about 76% of homeowners in Hennepin County had a mortgage in
2011.
• The median owner‐occupied home in St. Louis Park was $240,400 or $3,700 less than
Hennepin County’s median home value ($244,100) but $1,673 higher than the Metro Area
($238,727).
• The median contract rent in St. Louis Park was $862. Based on a 30% allocation of income
to housing, a household in St. Louis Park would need an income of about $34,480 to afford
an average monthly rent of $862.
Rental Housing Market Analysis
• Surveyed rental housing in the City of Saint Louis Park included 91 market rate apartment
properties (8 units and larger) and eight affordable/subsidized communities in May 2013.
These projects represent a combined total of 7,450 units, including 7,019 market rate units,
258 subsidized units, and 173 affordable units. Overall, 99 properties were contacted with
84 properties participating in the rental survey (85% participation rate). However, these 84
properties account for 7,176 of the total 7,450 units (96.3%). At the time of our survey, 133
market rate units, one affordable unit, and zero subsidized units were vacant, resulting in an
overall vacancy rates of 2.0% for market rate units, 0.6% for affordable, and 0% for subsi‐
dized units. The overall market rate vacancy rate of 2.0% is lower than the industry stand‐
ard of 5% vacancy for a stabilized rental market.
• Among the over 6,000 market rate units that were inventoried by unit mix and monthly
rents, nearly 45% of the units are affordable to householders at 50% AMI. Together with
26% of the units affordable at 60% AMI, 71% of the market rate rental housing inventory is
affordable at 50% to 60% AMI.
• Average monthly rents in the City of St. Louis Park were $763 for studio units, $937 for one‐
bedroom units, $1,374 for one‐bedroom plus den units, $1,174 for two‐bedroom units,
$1,944 for two‐bedroom plus den units, and $1,592 for three‐bedroom units. Overall, the
average monthly rent was $1,069, which was a $10 increase from the previous year.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 17
EXECUTIVE SUMMARY
4 MAXFIELD RESEARCH INC.
• The overall vacancy rate in St. Louis Park was 3.0%. Vacancy rates below 5% indicate that
pent‐up demand exists for additional rental units in the market. The overall Metro Area va‐
cancy rate is also very low at 2.8%.
• Apartment properties built between 1990 and 2010 account for 16% of the overall market
rate projects. But, this group attributes to almost 27% of the existing market rate rental
units.
• There are a total of eight income‐restricted projects in St. Louis Park with 431 total units.
Combined, only one unit is vacant posting a vacancy rate of only 0.2%. Typically, subsidized
and affordable rental properties should be able to maintain vacancy rates of 3% or less in
most housing markets. The low vacancy rates in the market indicate pent‐up demand for
affordable and subsidized units and also are an indication of the current economic climate
in the area.
• Managers at surveyed properties stated they had a wide mix of tenants. Some properties
indicated that their tenant mix ranged from college students to seniors and was very di‐
verse. However, most property managers believed that the average tenant was a young
professional.
• Developers and real estate agents agreed that smaller unit sizes like studio apartments have
become less attractive to prospective residents over the past years. Although studio
apartments are less expensive, the price per square footage is typically much higher than
other units.
Senior Housing Market Analysis
• As of May 2013, Maxfield Research identified 12 senior housing developments in St. Louis
Park. Combined, these projects contain a total of 934 units. Two of the projects are subsi‐
dized, while the remaining ten are market rate.
• There are a total of 196 units in two subsidized senior projects. As of May 2013, 16 units
were vacant resulting in a vacancy rate of 7.6%.
• The newest market rate senior rental project in the City of St. Louis Park is Tower Light on
Wooddale Avenue. This project has 29 units designated for assisted living and currently has
13 vacancies. The unit mix is comprised of studio, one‐bedroom, and two‐bedroom units.
The units range from $3,140 to $4,240 a month.
• Aquila Commons is the only active adult cooperative in the City of St. Louis Park. Coopera‐
tive products involve purchasing a unit (or share) and then paying monthly fees which in‐
cludes all utilities, of property and commons areas, and future building maintenance. The
106‐unit project currently has two vacancies.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term
Page 18
EXECUTIVE SUMMARY
5 MAXFIELD RESEARCH INC.
• Parkshore Place and Knollwood Place are congregate‐optional services senior rental devel‐
opments located in St. Louis Park. Parkshore Place is at full capacity, but Knollwood Place
has six vacancies, resulting in a vacancy rate of 2.3%.
• There is only one congregate services included property in the City of St. Louis Park. Tower
Light on Wooddale Avenue opened in late 2012 and includes 43 units. As of May 2013, this
sector of Tower Light had 21 vacancies resulting in a vacancy rate of 48.8%. High vacancy
rate is due to being in the initial lease‐up phase.
• St. Louis Park has a total of three assisted living facilities with 149 units. Combined the
three projects have 23 openings, resulting in a vacancy rate of 15.4%. However, excluding
Tower Light, the vacancy rate is 8.3%.
• A total of three memory care facilities with 80 units are located in St. Louis Park. Memory
care housing is one of the newest trends in senior housing, which caters to seniors with Alz‐
heimer’s and other dementia. All of the memory care facilities have been built after 2000.
Combined the three properties have 25 vacancies, resulting in a vacancy rate of 31%. How‐
ever, excluding Tower Light, the vacancy rate is 2.1%.
For‐Sale Housing Market Analysis
• Like across the Twin Cities Metro Area and the nation, pricing in St. Louis Park peaked
between 2005 and 2007 at the height of the real estate boom. The median sales price
peaked in 2006 at about $234,500 while the average sales price peaked at roughly $254,000
in 2007.
• Between 2000 and 2006/2007, St. Louis Park and the surrounding communities experienced
rapid home sale appreciation during the real estate boom. However, after the housing
market plateaued in late 2005 through early 2007, St. Louis Park and area communities
started to experience sliding housing values as the housing market bubble burst.
• After adjusting for the downturn in the housing market, St. Louis Park housing values
showed appreciation of about 37% between 2000 and 2012; over twice as high as the Met‐
ro Area (+18.8%).
• Compared to the neighboring communities and Metro Area average, St. Louis Park homes
realized the highest ratio of the sold price compared to the original list price. Resales in
2012 sold at over 94% of the listing’s original list price.
• The number of resales was highest between 2003 and 2006, averaging nearly 950 resales
annually. Resale activity was lowest in 2010 with just over 500 resales.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 19
EXECUTIVE SUMMARY
6 MAXFIELD RESEARCH INC.
• The median resale price of homes in St. Louis Park was approximately $198,500 in 2012.
The income required to afford a home at this price would be about $56,715 to $66,165,
based on the standard of 3.0 to 3.5 times the median income (and assuming these house‐
holds do not have a high level of debt). In 2012, 63% (9,331 households) of St. Louis Park’s
non‐senior households had incomes greater than $56,715.
• Over 40% of the multifamily inventory is listed under $100,000. This product is dominated
by older condominiums built in the 1960s, 1970s, and 1980s. Condominium product built
this past decade is generally listed above $250,000.
• One‐story homes made up the highest percentage (38.4%) of active single‐family listings.
One and one‐half story homes also account for a significant proportion at 34% of single‐
family listings. These two property types have among the lowest list price per square foot
among the entire single‐family inventory ($137 PSF and $145 PSF respectively).
• The percentage of lender‐mediated sales in St. Louis Park increased from 14% in 2008 to
40% in 2011, before decreasing to 27% in 2012. St. Louis Park has fared better than the
Metro Area over the past five years.
• There are 40 condominium projects with a total of over 2,700 units in the City of St. Louis
Park. Overall, condominium units are older as about 55% of the units were constructed in
the 1970s and 1980s.
• A review of recently sold and actively marketing new single‐family homes found that home
prices ranging from $350,000 to $777,500 with an average sales price of about $510,000.
The average price per square foot (PSF) of $185. The average size of 2,700 square feet with
four bedrooms and 3.5 baths.
Housing Needs Analysis
• Based on our calculations, demand exists for the following general occupancy product types
between 2013 and 2025:
o Market rate rental 683 units
o Affordable rental 374 units
o Subsidized rental 225 units
o For‐sale single‐family 264 units
o For‐sale multifamily 1,085 units
• In addition, we find demand for multiple senior housing product types. By 2018, demand
for senior housing is forecast for the following:
o Active adult ownership 54 units
o Active adult market rate rental 232 units
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 20
7 MAXFIELD RESEARCH INC.
o Active adult affordable 173 units
o Active adult subsidized 134 units
o Congregate 17 units
o Assisted living 117 units
o Memory care 41 units
Recommendations and Conclusions
• Based on the finding of our analysis and demand calculations, the following chart
provides a summary of the recommended development concepts by product type for the
City of St. Louis Park through 2025. Detailed findings are described in the Conclusions and
Recommendations section of the report.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 21
St. Louis Park Housing Goals: Proposed
Promote and facilitate a balanced and enduring housing stock that offers a continuum of diverse life-
cycle housing choices suitable for households of all income levels including affordable, senior,
supportive and mixed income housing disbursed throughout the City.
Single Family Homes: The City places a high priority on creating, preserving, and improving the City’s
single family housing stock.
• Promote the creation of family sized, owner-occupied, single-family homes with more bedrooms,
more bathrooms, more amenities and 2+ car garages through the expansion of existing homes and
through construction of new homes.
• Proactively address blighted housing properties through code enforcement and public or private
redevelopment activities such as acquisition, demo and housing replacement.
• Promote high-quality architectural design standards of homes through the use of good design, quality
materials and superior construction.
Multi-Family: The City is committed to promoting quality multi-family developments, both rental and
owner occupied, in appropriate locations such as near transit centers, retail and employment centers and
in commercial mixed use districts.
• Promote the preservation and maintenance of existing multi-family housing stock.
• Promote high-quality architectural design in the construction of new multi-family developments.
• Be proactive in analyzing and guiding redevelopment opportunities for multi-family developments.
Home Ownership: The City places a high priority on home ownership including affordable
homeownership options. Explore traditional and non-traditional owner-occupied housing options such
as; row houses, courtyard housing, high-rises, 3-story homes, Land Trust and Habitat sponsored homes,
and multi-generational housing.
Affordable Housing: The City is committed to promoting affordable housing options for low and
moderate income households.
• Affordable housing should be disbursed throughout the City and not concentrated in any one area of
the City.
• Support the preservation of naturally occurring affordable housing.
• Promote the inclusion of affordable housing opportunities in new developments located near the
Southwest Light Rail Transit Corridor and other transit nodes, retail and employment centers and
commercial mixed use districts.
• Future affordability goals with the Metropolitan Council should be reflective of the City’s existing
affordable housing stock as well as City’s future needs.
Preservation, Safety and Sustainability: The City places a high priority on ensuring all housing is safe
and well maintained.
• Preserve and enhance housing quality through code enforcement and the promotion of housing
improvement programs related to home rehabilitation, design and housing safety.
• Encourage the use of green building, energy efficient products, and sustainability in both single
family and multi-family housing construction.
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 5)
Title: City Housing Development and Policy - Short Term & Long Term Page 22
__________________________________________________
3700 Monterey Drive, St. Louis Park, MN 55416-4902
Phone: (952) 924-2554 Fax: (952) 925-5663
E-Mail: jwest@stlouispark.org
We bsite: www.stlouispark.org
Date: September 15, 2014
To: St. Louis Park City Council and School District
From: Jason T. West, Recreation Superintendent
Re: St. Louis Park Community Center
As a result of the last Community Visioning process, it became clear that the community
took great interest in expanding the civic and/or recreational facilities and amenities
available for community use. In 2011, a resident survey was completed which helped
identify specifically what was missing in the community from a civic and or recreational
facility perspective and explain what types of facilities or amenities it might wish to
consider adding to the community. In 2012, a 22 member Task Force was created to help
identify program content and related space needs. The Task Force toured facilities, spoke
with residents and worked through many issues of what was needed for the community.
During this phase of planning, each component was researched to ensure appropriate
space and amenities associated with each of the items. Staff also identified some areas
where we could have potential partners.
In 2013, the Task Force reported to City Council that the needed amenities were
gymnasiums, indoor aquatics, drop-in child care, community room, commons/gathering
place, kid’s play area, indoor track, fitness center and party rooms. Also in that year,
Hammel, Green and Abrahamson, Inc. (HGA) was selected as the consultant to assist in
the further analysis of the possible community center by constructing a feasibility study.
HGA has experience designing and building community centers around the metro area as
well as in other states.
Once the feasibility study was completed, it was presented to City Council in 2014 at
which time they authorized staff to proceed further with HGA to create a schematic
design of the community center. This phase provides more accurate cost estimates and
building renderings so that public input can be gathered at a future date. Staff currently
has contracts with three primary consultants to provide this schematic design phase:
Hammel, Green and Abrahamson, Inc (HGA) for the architecture and engineering, RJM
for the cost estimating and American Engineering Testing for the soils testing and survey
work.
The community center project is still in the schematic design phase and staff is preparing
to present the results of the schematic design to City Council on October 27, 2014.
OPERATIONS & RECREATION
DEPARTMENT MEMO
Joint City Council & School Board Meeting of September 29, 2014 (Item No. 7)
Title: City Community Center Project Update
Page 23
Attachment D