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HomeMy WebLinkAbout2013/12/02 - ADMIN - Agenda Packets - City Council - Regular AGENDA DECEMBER 2, 2013 6:00 p.m. CLOSED EXECUTIVE SESSION – Westwood Room Discussion Items 1. 6:00 p.m. City Manager Performance Evaluation 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations -- None 3. Approval of Minutes 3a. Special Study Session Minutes November 4, 2013 3b. Study Session Minutes November 12, 2013 3a. City Council Meeting Minutes November 18, 2013 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5. Boards and Commissions -- None 6. Public Hearings 6a. 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing Recommended Action: • Information will be presented at the meeting pertaining to the 2014 property tax supported budgets, 2014 Preliminary Property Tax Levy, and other general tax and budgetary information. • After the presentation, the Mayor is asked to open the public hearing, solicit comments and close the public hearing. There is no other formal action required at this meeting. 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. M.G.M. Off Sale Liquor License Recommended Action: Motion to approve Off Sale Intoxicating Liquor License for M.G.M. of St. Louis Park, LLC, dba MGM Wine and Spirits, located at 8100 Highway 7, Unit #348, for the license term through March 1, 2014. Meeting of December 2, 2013 City Council Agenda 8b. Louisiana Station Area Framework Plan and Design Guidelines Report Recommended Action: Motion to accept the Louisiana Station Area Framework and Design Guidelines report. 8c. Business Park Rezoning of Properties near Hwy 7 & Louisiana Ave. S., Wooddale Ave. S., and Belt Line Blvd. Recommended Action: Motion to approve First Reading to rezone 42 properties for Business Park zoning and set second reading for December 16, 2013. 8d. SWLRT Station Area Form-Based Code Grant Contract. Recommended Action: Motion to Authorize the Mayor and City Manager to execute a contract with CodaMetrics to develop and write a form-based code for the three St. Louis Park Southwest Light Rail Transit (SWLRT) station areas. 9. Communication Meeting of December 2, 2013 City Council Agenda CONSENT CALENDAR 4a. Adopt Resolution approving acceptance of monetary donations from Independent School District 283 ($5,000), Churchill Plastics ($5,000), St. Louis Park Dugout Club/Family and Friends of the Baseball Community ($3,500) and the St. Louis Park Hockey Association ($1,000) for a new scoreboard at Dakota Park. 4b. Adopt Resolution approving acceptance of a monetary donation from Leslie Marcus in the amount of $100 for Westwood Hills Nature Center. 4c. Approve for filing Environment & Sustainability Commission Meeting Minutes October 2, 2013. St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. 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: City Council Closed Executive Session Meeting Date: December 2, 2013 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: City Manager Performance Evaluation RECOMMENDED ACTION: Lynae Steinhagen, Consultant, will review the information from the annual performance review for Tom Harmening, City Manager. Council will discuss the information from the evaluation process and set general direction for work for 2014. POLICY CONSIDERATION: Not applicable. SUMMARY: Consultant Lynae Steinhagen will update the City Council and City Manager in a Closed Executive Session on the results of the City Manager’s performance evaluation. The information will be sent to the Council under separate cover by Monday. The discussion will proceed as follows: • As in the past, Councilmembers-elect will be invited to participate in the session. • The summary of the information from the evaluation will be presented by Ms. Steinhagen. Council will provide comments or suggestions. • City Manager Tom Harmening will join the Council and participate in the conversation, reviewing work from 2013 and setting direction for 2014. • Once completed, final documents will be presented for formal approval at the next regular Council meeting. In accordance with Minnesota open meeting law, this meeting will be audio taped. The law states: “All closed meetings, except those as permitted by the attorney-client privilege, must be electronically recorded at the expense of the public body. Unless otherwise provided by law, the recordings must be preserved for at least three years after the date of the meeting.” FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. Attachments: None Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Deno, Deputy City Manager Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: December 2, 2013 Minutes: 3a UNOFFICIAL MINUTES CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA NOVEMBER 4, 2013 The meeting convened at 6:31 p.m. Councilmembers present: Mayor Jeff Jacobs, Steve Hallfin (arrived at 6:34 p.m.), Anne Mavity, Julia Ross, Susan Sanger, Sue Santa, and Jake Spano. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), City Engineer (Ms. Heiser), Director of Community Development (Mr. Locke), Operations Superintendent (Mr. Hanson), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes). 1. Ownership and Replacement Costs in the Right of Way Ms. Heiser presented the staff report and the draft policy related to ownership of private improvements in the public right of way. She advised that this policy will be helpful to staff as part of the Connect the Park project to provide a consistent message to residents regarding ownership of private improvements in the public right of way. She indicated that staff surveyed other communities to understand their policies on this issue and learned that below ground items are typically the property owner’s responsibility. She stated staff also considered the possibility of having the City pay for replacement of landscaping and used 39th Street as an example and determined that the replacement costs would add approximately 25% to the project budget. She indicated the policy requires that property owners apply for a right of way permit for below ground private improvements and staff intends to communicate this new requirement to property owners and to educate the public about where the right of way is located, adding that the right of way permit will be free of charge for single family residential properties. She pointed out that the last sentence of the first page of the draft policy will be revised to state “If the City determines that a private improvement in the ROW is a hazard to public safety, impedes snow removal/storage, or creates a visual obstruction, the City will work with the property owner to address the problem.” Councilmember Mavity requested that the policy contain clear guidance about the right of way permit and what types of private improvements trigger the need for the permit. Councilmember Ross asked if property owners need to apply for the right of way permit if they already have something in the right of way. Ms. Heiser replied that the City does not plan to retroactively require that property owners obtain a right of way permit. Councilmember Ross felt the City should encourage property owners to obtain a right of way permit for existing below ground improvements since the City is already going to be meeting with residents about the sidewalk project. She stated the permit does not need to be mandated but it would be nice to have information about existing improvements in the right of way. City Council Meeting of December 2, 2013 (Item No. 3a) Page 2 Title: Special Study Session Minutes of November 4, 2013 Councilmember Mavity did not feel that the City’s draft policy landed in the right spot in terms of its peer communities and felt the City should strive toward a policy that is more closely aligned with Edina in terms of its salvage and restore in place policy. She felt the policy should state that the City will salvage and relocate items as a part of the project. The location could be either in or out of the right of way. Councilmember Spano suggested that Council consider providing property owners with a percentage of the cost to replace items in the public right of way instead of a stipend, e.g., if a property owner incurs a $50 replacement cost, the City will cover half that cost or $25. He felt this would be more equitable and would eliminate the concern about one property owner not getting the same amount as another property owner. Councilmember Santa stated that retaining walls are very often put in by a property owner because they are needed and not for aesthetic purposes and she hoped the City would replace retaining walls because it was needed in that location and a property owner would not have gone to the expense otherwise. She agreed with Councilmember Spano’s suggestion about providing a percentage but questioned who would decide how much a tree or shrub is worth. She noted the importance of diversifying the urban forest and felt this was one way of achieving that if you are taking out an elm tree and replacing it with something that adds diversity, adding that she felt the City should pay for the replacement tree. Councilmember Sanger agreed that some form of reimbursement to the property owner or replanting makes sense, but was concerned about what happens if the replanting takes place on the homeowner’s private property and possible liability issues for the City. She stated she would rather have the policy state that the City will issue a check to the property owner for anything the City is responsible for and to have the property owner be responsible for getting the work done. She indicated there was nothing in the policy that addressed the ability to transplant some trees or shrubs rather than starting with new plantings and felt the City should pursue transplanting trees and/or shrubs if there is a reasonable chance of survival. She also felt the City should maintain some flexibility in dealing with right of way issues because the policy might not fit 100% in every situation. Councilmember Mavity suggested that the City’s policy related to above ground items state that the City will salvage and restore in place and/or relocate outside the right of way. Councilmember Sanger asked if property owners will have one point of contact at the City related to this policy. Ms. Heiser replied in the affirmative. Councilmember Santa expressed concern about the salvage and restore in place language, explaining that if there was no sidewalk on a particular piece of property, it could be assumed that the property belonged to “John Jones” and once a sidewalk goes in, the boulevard becomes a public space and it may not be appropriate to have “John Jones’s” property on the public space where the public could interfere with it. She stated she was leaning more towards relocating outside of the right of way with the ability to have a little wiggle room in the policy. It was the consensus of the City Council that the policy regarding ownership of private improvements in the public right of way shall state that below ground items are the responsibility of the property owner. It was also the consensus of the City Council that the policy regarding City Council Meeting of December 2, 2013 (Item No. 3a) Page 3 Title: Special Study Session Minutes of November 4, 2013 below ground items shall state that the City will salvage and restore in place where feasible or outside of the right of way. It was also the consensus of the City Council that as a general rule, the City will replace trees and shrubs. Mr. Harmening stated that a revised policy will be presented to Council in the near future. 2. Update on Southwest LRT (Verbal) Mr. Harmening presented a timeline of events since October 14th and advised that he and Mayor Jacobs will be meeting with the Governor tomorrow (11/5/13). He stated the CMC is scheduled to meet on November 6th to receive an update on the three studies that were ordered by the Governor. He indicated the City has provided comments on the scope of work for the freight rail analysis and staff is preparing a letter to the Governor commenting on the document disseminated by Senator Dibble; in addition, work continues on station area planning. Councilmember Sanger requested information about the proposed scope of the freight rail analysis. Mr. Harmening stated it was staff’s understanding that the consultants would look at all the previous freight rail options in St. Louis Park and may identify any other options in St. Louis Park as well as other possible options outside of the City. Councilmember Santa asked if the consultants will be reviewing the body of work that the City commissioned through SEH Consulting. Mr. Harmening replied in the affirmative and stated the consultants will review all the work and comments submitted with the DEIS, including the Safety in the Park work. He requested that Council consider having two or three people travel to Washington, D.C., in the next 30-60 days to visit with the City’s delegation regarding this project. It was the consensus of the City Council to direct staff to work with the City’s lobbyists to schedule a meeting with the City’s representatives in Washington, D.C., in the near future. The meeting adjourned at 7:33 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting: City Council Meeting Date: December 2, 2013 Minutes: 3b UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA NOVEMBER 12, 2013 The meeting convened at 6:32 p.m. Councilmembers present: Mayor Jeff Jacobs, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent: Steve Hallfin, Anne Mavity, and Jake Spano. Staff present: City Manager (Mr. Harmening), Deputy City Manager/Director of Human Resources (Ms. Deno), Director of Inspections (Mr. Hoffman), Director of Operations and Recreation (Ms. Walsh), Chief Information Officer (Mr. Pires), Director of Community Development (Mr. Locke), Director of Engineering (Ms. Heiser), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), and Recording Secretary (Ms. Hughes). 1. Future Study Session Agenda Planning – November 25, 2013 Mr. Harmening presented the proposed study session agenda for November 25th. 2. Southwest LRT Update Mr. Harmening presented the staff report and the Scope of Work prepared by the SPO and released at the CMC meeting last week. He stated the Scope of Work will be used by the outside consultant to prepare a report on the freight rail reroute analysis as well as an analysis of the hydrology study in the Kenilworth corridor and an analysis of some additional landscaping in the Kenilworth corridor to mitigate impacts of collocating freight rail and light rail. He indicated the Met Council’s goal is to hire a consultant by the end of November and to have the consultant’s work completed four to six weeks thereafter. He pointed out that this Scope of Work is not intended to be a detailed engineering analysis but rather a high level analysis of the work already done. Ms. Sophia Ginis from the SW LRT Project Office confirmed that Kimley-Horn was the project development consultant hired for the initial stage of the project and a new consultant will be hired to do the reanalysis directed by the Governor. Councilmember Ross asked if there was a possibility that the timeline for this project would be pushed out further if the consultants need additional time to complete their studies. Mr. Harmening stated it was his understanding that Met Council is assuming this new study will be done by January with the municipal consent process beginning shortly thereafter so that Met Council can meet its targets by the first part of 2014. Councilmember Sanger felt that the Scope of Work needed to include a statement of the criteria against which all of these routes will be evaluated and that indicates this same criteria will be used to evaluate all the potential routes. She stated the Scope of Work also does not indicate whether any attention is being paid to impacts on the surrounding communities including impacts on nearby properties, whether properties need to be taken, noise and vibration impacts, City Council Meeting of December 2, 2013 (Item No. 3b) Page 2 Title: Study Session Minutes of November 12, 2013 traffic impacts, and impacts on schools and businesses, as well as the mitigation needed for any or all of these routes. She also questioned how the consultants are going to do the cost analysis for these routes and felt the City needs to have a way to compare the cost of the routes including mitigation costs. She stated the Scope of Work also needs to address the issue of transparency and how all this information will be analyzed and presented to the public for comment prior to a decision being made. Mr. Locke explained that the Scope of Work addresses those items in more broad terms, adding it was important to recognize that this study is intended to address the viability issue from a freight rail perspective and does not include any new analysis. Councilmember Sanger requested further information about the potential meeting with Federal legislators in Washington, D.C., and attendees at that meeting. Mayor Jacobs suggested that the meeting with Federal legislators include Senators Klobuchar and Franken and that he attend this meeting along with Councilmembers Sanger and Spano. He stated the purpose of the meeting is to make sure nothing is going to happen that will jeopardize the Federal funding for this project and to reaffirm the Senators’ commitment to this project. Mr. Harmening stated that staff will work on coordinating schedules for this meeting and will prepare an agenda and goals for the meeting for review by Council. 3. Long Range Financial Management Plan and 2014-2018 CIP Mr. Swanson presented the staff report and provided an overview of how the CIP fits into the City’s long range financial management plan and budgeting process. Mr. Hoffman stated that one of the projects in the Buildings Department 2014 budget includes the second floor remodeling at City Hall budgeted at $420,000. He stated another project planned for 2014 is repair work on the police station concrete fascia to seal areas where there is water intrusion at the mortar joints to prevent any damage to the building and the project is estimated at $100,000. He indicated another project at the police station is the creation of an emergency operations center (EOC) in the roll call room and remodel of the break room for $240,000. He stated the technology is outdated and the break room will be enlarged with a different layout of the kitchen area. He advised that another project planned in 2014 will be done at the MSC to repair the first bay concrete floor with application of a new polymer coating technology to extend the life for 20 years. He stated another project being investigated at the MSC is a roof mounted 40 kilowatt solar panel system. He explained that the cost of these panels has significantly decreased and the City is able to install the system for $35,000 with a ten-year payback and the useful life of the panels is at least 50 years. He agreed to obtain further information about disposal of the panels and provide this information to Council. Councilmember Ross asked if staff considered having carports with plug-ins for the Police Department so that the squad cars do not have to be kept running all the time. Mr. Hoffman replied that currently there are plug-ins available with automatic releases for all the squads at the Police Department. He added that the City reviewed adding a roof over the carport but decided that it was not worth the cost and did not represent the best value for the money. City Council Meeting of December 2, 2013 (Item No. 3b) Page 3 Title: Study Session Minutes of November 12, 2013 Mr. Pires stated that the Technology Department 2014 budget includes the police/fire 800 MHz radio/console replacement project. He explained that the City plans to replace three complete work stations in 2014 at a cost of $20,000 each and in 2016, several hundred portable radios and mobile radios used by police and fire will be replaced at a cost of $600,000. He stated that the City’s asset management software will be replaced in 2014 and indicated this software allows the City to document and keep maintenance records on all street assets, park assets, fiber assets, etc., as a way to keep track of and know when a particular asset needs to be maintained and/or upgraded. He stated that other 2014 projects include the police/fire dispatch 800 MHz backup system and the new computer aided dispatch, records management, and mobiles system approved by Council in September. He stated that a couple of fiber projects are planned in 2014, including Highway 7/Louisiana to coincide with the construction of the new interchange as well as during the Highway 100 reconstruction project. He added that another project not listed in the report relates to the St. Louis Park library and explained that the City has been working with the County on connecting the St. Louis Park library to fiber. . The hope is that project is funded primarily by the County, with other benefits to the City. He also pointed out that in 2015 the Cable TV CIP shows $120,000 for van cameras representing one of the largest expenditures in the Cable TV CIP. He indicated the camera performance has been good and it may be possible to push this expenditure out to a later year. Councilmember Ross requested further information about the public kiosks. Mr. Pires stated that a self-service kiosk will be installed in the first floor lobby at City Hall and the kiosk will have commonly used functions that are easy to use, e.g., look for jobs, register for a program, or pay a bill, with the goal to expand the use of kiosks to other sites such as the Rec Center and to encourage people to do as much city business online as possible. Councilmember Ross requested an update on the use of cameras in the park restrooms. Ms. Walsh stated the buildings do not yet have fiber and the City is exploring a cheaper alternative with a DSL line. She indicated that Nelson and Browndale Park will be set up on a trial basis in the near future. Councilmember Sanger requested that Fernhill Park be included in the trial. Ms. Heiser stated the Engineering Department has reviewed the CIP to make sure the City takes advantage of opportunities to do more than one project at a time, e.g., if a street is being reconstructed and the water main needs to be replaced, the City will work to make sure the projects are done at the same time to save money and reduce inconvenience to the public. She stated the City will install fiber and do some water main and frontage road work during the Highway 100 reconstruction project. Councilmember Ross noted that the markings on the roadway over Highway 7 going north are difficult to see and drivers are having trouble noticing the lane shift and the fact that there are two lanes in this area and requested that staff take a look at this. Ms. Heiser agreed to have staff take a look at Highway 7. She advised that staff met with residents in the Wooddale and 36th neighborhood to discuss concerns about traffic and safety. She noted that this area is on the CIP but has been pushed back because of SW LRT, however, the City’s traffic engineer was able to develop a low cost, high benefit traffic signal improvement that will provide short-term benefits without a significant investment long term. She advised the City Council Meeting of December 2, 2013 (Item No. 3b) Page 4 Title: Study Session Minutes of November 12, 2013 City has eight pavement management areas, and the 2014 Pavement Management project is in area 2. She noted there are some sidewalks being installed in this area and the City has scheduled a meeting with residents next week to discuss the project. She stated another large initiative is the storm water improvements including the Bass Lake rehabilitation project with $6 million programmed into the CIP for this project and the public involvement process will be kicked off next year. Councilmember Sanger asked if the Highway 100 project contemplates the reconstruction of Utica between 26th and north of Minnetonka Boulevard. Ms. Heiser stated it was her understanding that the reconstruction has been incorporated as part of the costs of the project and agreed to confirm that. Councilmember Santa requested further information about the street light project and whether the City has considered transitioning to LED. Ms. Walsh replied the City has LED lights on order for Cedar Lake Road and the intent is to change out all the City’s streetlights with LED. She stated the City could realize up to a 40% savings on its operational costs with LED lighting. Ms. Walsh stated that the Parks & Recreation CIP includes Dakota Park field renovations in 2014 as well as new playground equipment at Dakota and Louisiana Oaks Parks. She noted that the CIP shows a parking lot addition to Louisiana Oaks in 2014 but this item is being moved to 2015 to coincide with the trail on Louisiana so that residents in the area are only disrupted once. She advised that a significant expenditure in 2016 involves the refrigeration changeover at the Rec Center as part of the mandate to eliminate use of Freon by 2020. Mr. Heintz presented the long range financial management plan and reviewed the Cable TV Fund with Council and pointed out that the Comcast franchise agreement expires at the end of 2020 and the Cable TV fund will need another revenue source after 2020. He also reviewed the Housing Rehabilitation Fund and stated the funding source is the City’s 1/8 of 1% administrative fee, the majority of which will drop off in 2022. He reviewed the Park Improvement Fund and stated the City might bond for the refrigeration project at the Rec Center and if the community center project comes forward, the City could combine these projects to take advantage of cost savings. He then reviewed the Pavement Management Fund and pointed out this Fund includes the assumption that the City will have a franchise fee increase of $.50 per utility during odd years to continue the sustainability of this fund going forward. He also reviewed the Capital Replacement Fund and stated the City has additional monies going in this fund based on Council’s adoption of the preliminary 2014 property tax levy; in addition, this fund includes LGA for the next two years. He noted this fund has short term funding challenges but the long- term sustainability of the fund looks good. Councilmember Sanger asked what assumptions are being made about changes in interest rates and inflation rates. Mr. Swanson replied the City has used a 3% inflationary factor and estimated interest rates are shown in the CIP. City Council Meeting of December 2, 2013 (Item No. 3b) Page 5 Title: Study Session Minutes of November 12, 2013 Mr. Heintz reviewed the HRA Levy Fund and stated this fund is used to pay for projects such as Highway 7/Louisiana and includes a $4 million internal loan from the Development Fund with resources tied up through 2019. Mr. Harmening stated that the City hopes that the HRA Levy Fund can pay for future improvements in the community around the light rail stations. Mr. Heintz then reviewed the Development Fund and advised that this fund has a lot more resources than cash and the City is using those resources to generate more interest out in the market. Mr. Harmening stated that Council will need to address the long-term sustainability of this fund and indicated this fund is important to the community’s future from an economic development perspective. Mr. Heintz reviewed the Storm Water Utility Fund and noted that the City’s other utility funds are operating as planned based on the City’s rate studies and analysis; however, the Storm Water Utility Fund has a significant capital outlay in the next five to seven years with the most significant project being the Bass Lake area. He indicated the City will have to issue bonds in two stages for these projects and pointed out there are several years where 10% rate increases are needed. Mr. Harmening stated that Council will only approve CIP projects for 2014 when it approves the 2014 budget next month and will not be asked to approve projects beyond 2014 at this time. 4. City Manager’s 2013 Performance Evaluation Discussion Ms. Deno presented the staff report and advised that staff received three proposals from consultants to assist with the City Manager’s annual performance evaluation. She recommended that Council use Lynae Steinhagen of BWR Organizational Consulting and suggested that Ms. Steinhagen contact Council directly to schedule face to face interviews followed by a meeting with the City Council and Mr. Harmening, with the goal of completing the process by December 16, 2013. It was the consensus of the City Council to proceed with the recommendations for conducting the City Manager’s 2013 annual performance evaluation. Communications/Meeting Check-In (Verbal) None. The meeting adjourned at 8:53 p.m. Written Reports provided and documented for recording purposes only: 5. September 2013 Monthly Financial Report 6. Update on Environment and Sustainability Commission: Sustainable SLP ______________________________________ ______________________________________ Nancy Stroth, City Clerk Jeff Jacobs, Mayor Meeting: City Council Meeting Date: December 2, 2013 Minutes: 3c UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA NOVEMBER 18, 2013 1. Call to Order Mr. Harmening advised that Mayor Jacobs and Mayor Pro Tem Sanger are both out of town and Council is required to appoint an Acting Mayor Pro Tem to run the meeting. It was moved by Councilmember Spano, seconded by Councilmember Mavity, to nominate Julia Ross as Acting Mayor Pro Tem. The motion passed 5-0 (Mayor Jacobs and Councilmember Sanger absent). Acting Mayor Pro Tem Ross called the meeting to order at 7:31 p.m. Councilmembers present: Acting Mayor Pro Tem Julia Ross, Steve Hallfin, Anne Mavity, Sue Santa, and Jake Spano. Councilmembers absent: Mayor Jeff Jacobs and Councilmember Susan Sanger. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), City Clerk (Ms. Stroth), Director of Inspections (Mr. Hoffman), and Recording Secretary (Ms. Hughes). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations - None 3. Approval of Minutes 3a. City Council Meeting Minutes November 4, 2013 The minutes were approved as presented. Councilmember Spano requested to make a statement to the public regarding the lighting on the trail (page 3) and his concern about lighting and emergency phones for purposes of safety, and at the time, staff indicated there were no plans for any lighting features. He stated that he has since been informed that the City is working with MCWD on a lighting plan for the trail to increase safety in that area. 3b. Special City Council Meeting Minutes November 12, 2013 The minutes were approved as presented. 4. Approval of Agenda and Items on Consent Calendar City Council Meeting of December 2, 2013 (Item No. 3c) Page 2 Title: City Council Meeting Minutes of November 18, 2013 NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Approve Second Reading and Adopt Ordinance No. 2451-13 Repealing Section 16- 33 of the St. Louis Park Code of Ordinances Relating to Criminal History Background Investigations. 4b. Authorize execution of a contract with Northeast Tree, Inc., as the 2014-2016 Boulevard Tree Pruning contractor in an amount not to exceed $60,000 per year. 4c. Approve for filing Vendor Claims. 4d. Approve for filing Housing Authority Meeting Minutes September 11, 2013. The Agenda and items listed on the Consent Calendar were approved. 5. Boards and Commissions - None 6. Public Hearings 6a. Public Hearing – 2014 Liquor License Fees. Resolution No. 13-171. Ms. Stroth presented the staff report and explained that City Ordinance permits Council to set liquor fees by resolution in amounts no greater than set forth in the State statute. She stated where there is no state restriction, a city can set the liquor fee at an amount that reflects the cost of issuing the license and other costs related to enforcement. She indicated the proposed 2014 liquor license fees reflect the cost of administration, public safety enforcement, are comparable to the midrange of other similar sized cities, and reflect no increases for 2014. Acting Mayor Pro Tem Ross opened the public hearing. No speakers were present. Acting Mayor Pro Tem Ross closed the public hearing. It was moved by Councilmember Mavity, seconded by Councilmember Santa, to adopt Resolution No. 13-171 Adopting 2014 Liquor License Fees for the License Term March 1, 2014 - March 1, 2015. The motion passed 5-0 (Mayor Jacobs and Councilmember Sanger absent). 6b. Public Hearing – Byerly’s, Inc., Liquor License Ms. Stroth presented the staff report and stated that Byerly’s has requested an on-sale intoxicating and Sunday sale liquor license with the main emphasis to offer on-site wine and beer during cooking classes and to expand their catering to include alcohol. She advised the premises area is 3,280 square feet with seating for 61 and 23 seats in the cooking school and noted that staff and representatives from the Alcohol Enforcement Division met and agree that the use of planters is allowable to define the premises area. She pointed out the liquor license will cover the remainder of the term through March 1, 2014. Acting Mayor Pro Tem Ross opened the public hearing. City Council Meeting of December 2, 2013 (Item No. 3c) Page 3 Title: City Council Meeting Minutes of November 18, 2013 Mr. Ross Huseby, Byerly’s General Manager, appeared before the City Council and stated that when Byerly’s closed its restaurant in April, they lost the liquor license and are here this evening to request another liquor license that they can use for the catering business and to serve in their restaurant. He stated that Byerly’s provides alcohol compliance training to its employees and this training is no different than the training provided at their liquor stores. Acting Mayor Pro Tem Ross indicated that Council approved a new type of liquor license for culinary cooking classes and asked if the Byerly’s cooking school, catering operations, and café are covered under one license. Ms. Stroth replied in the affirmative that the on sale intoxicating liquor license will cover the café and cooking school as well as liquor service allowed during catering operations. Acting Mayor Pro Tem Ross asked if the catering operations would be impacted if an underage drinking violation occurred in the Byerly’s serving area. Mr. Harmening explained that if Byerly’s did not pass a compliance check they would be treated like all other liquor establishments that do not pass a compliance check, i.e., a fine would be imposed for the first offense while still retaining their license, adding that continued violations could result in revocation of the liquor license. Acting Mayor Pro Tem Ross closed the public hearing. It was moved by Councilmember Mavity, seconded by Councilmember Spano, to approve On-Sale Intoxicating and Sunday Sale Liquor License for Byerly’s, Inc., dba Byerly’s, located at 3777 Park Center Blvd., for the license term through March 1, 2014. The motion passed 5-0 (Mayor Jacobs and Councilmember Sanger absent). 6c. Public Hearing – M.G.M. of St. Louis Park, LLC, Liquor License Ms. Stroth presented the staff report and advised that M.G.M. of St. Louis Park, LLC, has made application for an off-sale intoxicating liquor license at 8100 Highway 7 in the Knollwood Mall consisting of approximately 8,890 square feet. She stated it is possible that M.G.M. of St. Louis Park, LLC, may not open until March of next year, however, the State Alcohol Division recommended that the liquor license be approved to cover the current liquor license term through March 1, 2014. Acting Mayor Pro Tem Ross opened the public hearing. Mr. Terrance Maglich, Vice President, M.G.M. of St. Louis Park, LLC, approached the City Council and introduced Mr. Michael Maglich, co-owner of M.G.M. of St. Louis Park, LLC, and requested Council’s support in issuing the requested liquor license. Councilmember Hallfin asked if M.G.M. of St. Louis Park, LLC, has other stores. Mr. Maglich replied they have only one store in St. Louis Park and this is a new corporation. He stated they have been working with Rouse Properties and have reached agreement on retrofitting the Party City space and adding a new fascia on the building. City Council Meeting of December 2, 2013 (Item No. 3c) Page 4 Title: City Council Meeting Minutes of November 18, 2013 Mr. Larry Jones, 8216 30 ½ Street, appeared before the City Council and asked if the City has a requirement for a one-mile separation between off-sale liquor establishments. Mr. Harmening replied that the City does not have this requirement. Mr. Jones requested that the City Council consider an ordinance with a one-mile separation but allowing liquor establishments already in existence to be grandfathered in. Acting Mayor Pro Tem Ross stated a possible ordinance could be discussed at a study session. Councilmember Mavity asked if the one-mile separation ordinance is present in other communities. Mr. Scott stated he has seen this type of ordinance in other communities and it is something the City Council could consider if it wishes. Councilmember Hallfin stated that Council has talked about the number of off-sale liquor establishments in the City and requested that Council have a study session discussion about this issue. He indicated there is an established liquor store across the street and if MGM moves in, it is going to hurt the established liquor store adding that the MGM store will be closer to Cub and business will shift from the established store to the new store. Acting Mayor Pro Tem Ross closed the public hearing. It was moved by Councilmember Santa, seconded by Councilmember Spano, to approve off-sale intoxicating liquor license for M.G.M. of St. Louis Park, LLC, dba MGM Wine and Spirits, located at 8100 Highway 7, Unit #348 (Knollwood Mall), for the license term through March 1, 2014. The motion failed 3-2 (Acting Mayor Pro Tem Ross and Councilmember Hallfin opposed; Mayor Jacobs and Councilmember Sanger absent). Mr. Harmening stated that the motion required four affirmative votes, thus, the application for the off-sale liquor license was not approved. Mr. Maglich stated they have never been denied a liquor license in 35 years of business and this was a serious reflection on their company that enjoys a stellar reputation. He stated they probably would have pulled their application if City staff had given them any indication that their application would be turned down and he respectfully requested that the City Council reconsider its action. Acting Mayor Pro Tem Ross requested guidance from the City Attorney about the process for reconsidering. Mr. Scott advised there could be a motion to reconsider by anyone who voted against the motion, i.e., Acting Mayor Pro Tem Ross or Councilmember Hallfin, and at that time, the matter is back on the table and the City Council votes on whether to reconsider the liquor City Council Meeting of December 2, 2013 (Item No. 3c) Page 5 Title: City Council Meeting Minutes of November 18, 2013 license application. He added it does not appear that the City Council has any basis for denying the liquor license application. Councilmember Mavity felt that Council should reconsider, adding she did not think this was a fair way to conduct business and apologized to Mr. Maglich. She also felt there were legitimate issues to consider and wanted to make sure Council considers this matter thoughtfully and thoroughly so that businesses are encouraged to come to St. Louis Park because they know they will be treated fairly. Mr. Maglich stated if someone had indicated there was a strong possibility that the license would be denied, they would not have gone forward with their application. He added this denial has a serious implication on damaging their company and reputation. Acting Mayor Pro Tem Ross stated it was not her intention to damage Mr. Maglich or his company, adding she understood their position and would reopen the matter for reconsideration. She stated it was her belief there are a lot of liquor stores in close proximity of each other in the City, adding she did not know MGM was planning to come to St. Louis Park and could not have given them any forewarning about the vote tonight. Mr. Scott advised that one option is for Acting Mayor Pro Tem Ross or Councilmember Hallfin to make a motion to reconsider for the purpose of allowing Mr. Maglich to withdraw their application, which means their application would not have been denied by Council. He stated another option is to bring a motion for reconsideration of this item at the next City Council meeting at which time there would be another vote on the liquor license application. Councilmember Hallfin stated he was fine letting the motion stand the way it is now. Acting Mayor Pro Tem Ross stated she wanted to be fair to Mr. Maglich and would make a motion to reconsider and bring the matter back before the City Council. It was moved by Acting Mayor Pro Tem Ross, seconded by Councilmember Santa, to reconsider the liquor license application for M.G.M. of St. Louis Park, LLC, dba MGM Wine and Spirits, located at 8100 Highway 7, for the license term through March 1, 2014. The motion passed 4-1 (Councilmember Hallfin opposed; Mayor Jacobs and Councilmember Sanger absent). Mr. Scott advised that it is now up to Mr. Maglich whether to withdraw their application. He added Council could also table the matter if there are four votes. It was moved by Councilmember Mavity, seconded by Councilmember Spano, to table the consideration of the off-sale intoxicating liquor license for M.G.M. of St. Louis Park, LLC, until the City Council’s next regular meeting of December 2, 2013. The motion passed 4-1 (Councilmember Hallfin opposed; Mayor Jacobs and Councilmember Sanger absent). 6d. Public Hearing – Currency Exchange License Renewal – Excel Pawn City Council Meeting of December 2, 2013 (Item No. 3c) Page 6 Title: City Council Meeting Minutes of November 18, 2013 Ms. Stroth presented the staff report and explained that licenses for currency exchange are handled by the Department of Commerce and are renewed each year through the State of Minnesota. She indicated the State conducts the criminal background investigations and the St. Louis Park Police Department has reviewed the findings and found nothing that warrants withholding the license renewal. Acting Mayor Pro Tem Ross opened the public hearing. Mr. Scott Lansing appeared before the City Council to speak in opposition to the license. He stated Excel has had a license for approximately 17 years and falsified their application either by not listing the real owners or misstating the criminal record of the owner(s). He presented the City Council with a written statement of facts along with copies of the Federal conviction and arrest reports. Mr. Doolittle approached the City Council and stated that some of the things that Mr. Lansing said are true. He stated he went to prison when he was 19 years old for conspiracy to distribute cocaine. He acknowledged he has had problems with drugs and alcohol but has been clean for nine years. Councilmember Mavity asked if these kinds of alleged criminal activities are activities that the City searches for when it conducts criminal background investigations. She also asked if these kinds of activities are relevant to the application being considered by Council this evening. Mr. Scott stated these alleged criminal activities would be relevant. He pointed out that the City Council is not considering an application for the pawn shop license, which is issued administratively, rather, this is a currency exchange license issued by the State that comes before the City as the governing body for action within 60 days . He stated if the City does not act on the license within the 60 day time period, it is presumed that the City is okay with it and the State will issue the license. He advised that Council could consider the criminal background findings in determining whether it wants to pass on its approval to the State. Councilmember Mavity asked if the background checks performed by the City include multiple jurisdictions. Ms. Stroth replied the Police Department would be in a better position to answer this and added the Police Department reviewed the background check done by the State and checked the records for any other reasons why the applicant should not have a license. Councilmember Mavity stated that serious allegations have been raised, and she has no basis on which to know whether these allegations have any validity. She stated it was unclear to her whether the City’s background checks have been thorough enough and did not feel that Council had enough information at this time to make a decision on the license renewal. It was moved by Councilmember Santa, seconded by Councilmember Mavity, to table action on the issuance of a Currency Exchange License Renewal to Excel Pawn & Jewelry by the State of Minnesota for their business located at 8008 Minnetonka Boulevard in St. Louis Park to a future City Council meeting. City Council Meeting of December 2, 2013 (Item No. 3c) Page 7 Title: City Council Meeting Minutes of November 18, 2013 The motion passed 5-0 (Mayor Jacobs and Councilmember Sanger absent). Mr. Jones approached the City Council again and stated that Excel Pawn displays a café sign along the boulevard and asked if the City’s sign ordinance prohibits these signs and if so, whether this was grounds for holding up the application or denying the application. Mr. Harmening stated that signs are generally not permitted on the right of way and would be a violation of the City’s Ordinance. Mr. Scott stated that any violation of the sign ordinance would probably not be grounds for denying the license renewal. Councilmember Hallfin informed Mr. Jones that sign issues are enforced upon complaint and if a complaint was made to City Hall, someone would be sent out to address the issue. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items – None 9. Communications Councilmember Spano reminded residents that November is prostate cancer awareness month or “Movember” and encouraged residents to contribute to the charity. 10. Adjournment The meeting adjourned at 8:27 p.m. ______________________________________ ______________________________________ Nancy Stroth, City Clerk Julia Ross, Acting Mayor Pro Tem Meeting: City Council Meeting Date: December 2, 2013 Consent Agenda Item: 4D EXECUTIVE SUMMARY TITLE: Accept Monetary Donations for the Derrick Keller Scoreboard located at Dakota Park ($14,500) RECOMMENDED ACTION: Motion to Adopt Resolution approving acceptance of monetary donations from Independent School District 283 ($5,000), Churchill Plastics ($5,000), St. Louis Park Dugout Club/Family and Friends of the Baseball Community ($3,500) and the St. Louis Park Hockey Association ($1,000) for a new scoreboard at Dakota Park. POLICY CONSIDERATION: Does the City Council wish to accept the gifts with restrictions on its use? SUMMARY: State statute requires City Council’s acceptance of donations. This requirement is necessary in order to make sure the City Council has knowledge of any restrictions placed on the use of each donation prior to it being expended. Derrick Keller, a young St. Louis Park resident, passed away after a long and hard battle with leukemia. Derrick was an icon at the Dakota Park ball field. At their January 7, 2013 City Council meeting, Council approved the renaming of the ball field Derrick Keller field. As part of the naming of the ball field and installation of scoreboard, individual donations were received in the amount of $ 14,500. Staff applied for a Hennepin County grant to assist in funding but the request was denied. FINANCIAL OR BUDGET CONSIDERATION: This donation will be used for the purchase and installation of a scoreboard on Derrick Keller field in Dakota Park. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Resolution Prepared by: Stacy M. Voelker, Administrative Secretary Reviewed by: Cindy Walsh, Director of Parks & Recreation Approved by: Tom Harmening, City Manager City Council Meeting of December 2, 2013 (Item No. 4a) Page 2 Title: Accept Monetary Donations for the Derrick Keller Scoreboard located at Dakota Park ($14,500) RESOLUTION NO. 13-____ RESOLUTION APPROVING ACCEPTANCE OF DONATION IN THE AMOUNT OF $14,500 TO BE UTILIZED TO PURCHASE AND INSTALL A SCOREBOARD AT DAKOTA PARK WHEREAS, The City of St. Louis Park is required by State statute to authorize acceptance of any donations; and WHEREAS, the City Council must also ratify any restrictions placed on the donation by the donor; and WHEREAS, Independent School District 283 ($5,000), Churchill Plastics ($5,000), St. Louis Park Dugout Club/Family and Friends of the Baseball Community ($3,500) and the St. Louis Park Hockey Association ($1,000) all donated funds for the purchase and installation of a new scoreboard at Dakota Park; and NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis Park that the gift is hereby accepted with thanks to Independent School District 283, Churchill Plastics, St. Louis Park Dugout Club/Family and Friends of the Baseball Community and the St. Louis Park Hockey Association with the understanding that it must be used to purchase and install a score board at Dakota Park. Reviewed for Administration Adopted by the City Council December 2, 2013 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: December 2, 2013 Consent Agenda Item: 4b EXECUTIVE SUMMARY TITLE: Accept Monetary Donation from Leslie Marcus to Westwood Hills Nature Center ($100) RECOMMENDED ACTION: Motion to Adopt Resolution approving acceptance of a monetary donation from Leslie Marcus in the amount of $100 for Westwood Hills Nature Center. POLICY CONSIDERATION: Does the City Council wish to accept the gift with restrictions on its use? SUMMARY: State statute requires City Council’s acceptance of donations. This requirement is necessary in order to make sure the City Council has knowledge of any restrictions placed on the use of each donation prior to it being expended. Leslie graciously donated $100 to Westwood Hills Nature Center. FINANCIAL OR BUDGET CONSIDERATION: This donation will be used at the discretion of Westwood Hills Nature Center for programming needs. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Resolution Prepared by: Carrie Mandler, Westwood Hills Nature Center Secretary Mark Oestreich, Westwood Hills Nature Center Manager Reviewed by: Cindy Walsh, Director of Parks & Recreation Approved by: Tom Harmening, City Manager City Council Meeting of December 2, 2013 (Item No. 4b) Page 2 Title: Accept Monetary Donation from Leslie Marcus to Westwood Hills Nature Center ($100) RESOLUTION NO. 13-____ RESOLUTION APPROVING ACCEPTANCE OF DONATION IN THE AMOUNT OF $100 TO BE USED FOR WESTWOOD HILLS NATURE CENTER PROGRAMING NEEDS WHEREAS, The City of St. Louis Park is required by State statute to authorize acceptance of any donations; and WHEREAS, the City Council must also ratify any restrictions placed on the donation by the donor; and WHEREAS, Leslie Marcus donated $100 to Westwood Hills Nature Center; and NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis Park that the gift is hereby accepted with thanks to Leslie Marcus with the understanding that it must be used at Westwood Hills Nature Center for programming needs. Reviewed for Administration Adopted by the City Council December 2, 2013 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: December 2, 2013 Consent Agenda Item: 4c MINUTES ENVIRONMENT AND SUSTAINABILITY COMMISSION: SUSTAINABLE SLP ST. LOUIS PARK, MINNESOTA October 2, 2013 Wolf Park Pavilion MEMBERS PRESENT: Tim Brausen, Mark Eilers, Terry Gips, Caitlin Glennon, Rachel Harris, Tom Hillstrom, Mary Karius, Cindy Larson O’Neil, Renee McGarvey, Alex Sundvall, Whitney Thesing, Judy Voigt MEMBERS ABSENT: Chris Anderson, Excused STAFF PRESENT: Bridget Gothberg, Cindy Walsh, Jim Vaughan, Laura Nevitt CONSULTANTS: Mike Lamb, Fred Rozumalski - Barr Engineering Company GUESTS: Diana McKeown, Metro CERTS’s Director http://www.cleanenergyresourceteams.org/partners-staff 1. The meeting was called to order at 7:05 p.m. 2. The minutes of the September 11, 2013 meeting were amended by Terry Gips to include the statement, “The next two meetings will be for 2 hours and for education.” Commissioner Hillstrom moved that the minutes be approved as amended. Motion was seconded by Commissioner Voigt and approved by the Commission. 3. Unfinished Business a. GreenStep Discussion: Diana McKeown gave a presentation on GreenStep Cities. The Commission talked about the history of GreenStep and who might be the farthest in GreenStep. Diana stated that the farthest along were Edina, Eagan, Falcon Heights, St. Anthony, and Woodbury. They have all finished Level 3 and Level 4 is just being developed. Jim Vaughan then talked about what has been done in St. Louis Park and what more needs to be done. Mr. Vaughan and Ms. Nevitt will be working together on reviewing the data and completing the forms regarding St. Louis Park’s GreenStep progress toward reaching Level 2. b. Work Plan Discussion: Mike Lamb led the discussion and shared potential framework for the work plan. There was much conversation, which led to asking Mike Lamb to revise the draft Work Plan and resubmit for review. Mike Lamb said he would continuing drafting the Work Plan and will bring it back to the November meeting. City Council Meeting of December 2, 2013 (Item No. 4c) Page 2 Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of October 2, 2013 4. New Business: a. November Meeting: i. Invite Edina Commission Chair and Sean from Alliance for Sustainability to continue the education of the St. Louis Park Commission. 5. Communications: a. Tim Brausen was interviewed by the High School press called “ECHO”. b. Cindy leased an electric car. If anyone wants to test drive, contact Cindy. c. Solar Gardens – 2 presentations – CERT’s Minnesota Renewable Society – Nov. 10th. d. There is a Badger Bioneers Conference in Madison on Nov. 5th. The main topic is Sustainability and Communication. e. Other resources include: i. Natural Steps information - http://www.naturalstep.org/usa ii. GreenStep - http://greenstep.pca.state.mn.us/index.cfmde 6. The meeting was adjourned at 9:05 p.m. Meeting: City Council Meeting Date: December 2, 2013 Action Agenda Item: 6a EXECUTIVE SUMMARY TITLE: 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing RECOMMENDED ACTION: • Information will be presented at the meeting pertaining to the 2014 property tax supported budgets, 2014 Preliminary Property Tax Levy, and other general tax and budgetary information. • After the presentation, the Mayor is asked to open the public hearing, solicit comments and close the public hearing. There is no other formal action required at this meeting. POLICY CONSIDERATION: • Does the City Council desire to set the 2014 Final Property Tax Levy at $25,577,908, which is an increase of $864,967 or approximately 3.50% over the 2013 Final Property Tax Levy at the December 16, 2013 meeting? Or, does the City Council desire to certify a lesser amount? • Does the City Council desire to continue to levy the full 0.0185% of estimated market value allowable for HRA purposes of $949,359, which is an increase of $48,426 or approximately 5.38% from 2013? Or, does the City Council desire to certify a lesser amount? SUMMARY: Included is information pertaining to the 2014 Budget and 2014 Preliminary General Property Tax and HRA levies. Information is also provided on the tax impacts to a residential property for Council to consider. In addition, there is a brief discussion on 2014 utility rates that were approved on October 21, 2013, and the impact to property owners. FINANCIAL OR BUDGET CONSIDERATION: The proposed tax levies and utility rates will help support necessary City services, capital improvements, and debt service obligations for Fiscal Year 2014. VISION CONSIDERATION: All Vision areas are taken into consideration and are an important part of our budgeting process. St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion 2014 Adopted Utility Rates - Impact for Residential Property Residential Estimated City Share of Property Taxes - 3.50% Prepared by: Brian A. Swanson, Controller Steve Heintz, Finance Supervisor Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 2, 2013 (Item No. 6a) Page 2 Title: 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing DISCUSSION BACKGROUND: At the September 3, 2013 Regular City Council meeting, the City Council adopted the 2014 Preliminary Property Tax Levy. This levy is utilized to support the operations of the General Fund, Capital Replacement Fund, Park Improvement Fund, and the Employee Administration Fund. In addition, the levy will provide for the pay down of principal and interest payments for the Debt Service Funds. The City Council and EDA also adopted the 2014 Preliminary HRA Levy. By law, this levy can only be used for infrastructure, housing and redevelopment purposes. Finally, the City Council reviewed and discussed the 2014 Proposed Budget, property tax implications, the 2014 – 2018 Capital Improvement Program (CIP) and utility rates over the course of the year. Formal adoption of the 2013 Final Amended Budget, 2014 Budget, 2014 Final Levy adoption for the City and HRA levies, and the 2014 – 2018 Capital Improvement Plan are scheduled for December 16, 2013. 2013 Final Levy, 2014 Preliminary Levy and General Fund Budget Information A synopsis of prior year levy information, the 2014 Proposed Preliminary Levy and General Fund Budget is shown below: 1. The 2014 Preliminary Property Tax Levy adopted on September 3, 2013, is $25,577,908, which is an increase of approximately 3.50% or $864,967 compared to the 2013 Final Property Tax Levy of $24,712,941. 2. The 2013 Final Property Tax Levy was $24,712,941, which was an increase of 4.00%, or $950,190 compared to 2012. 3. The Proposed 2014 General Fund Budget is $30,427,622, which is an increase of approximately 2.42% or $719,384 compared to the 2013 Final Amended Budget. 4. The 2014 Preliminary HRA Levy adopted on September 3, 2013, is $949,359, which is an increase of approximately 5.38% or $48,426 compared to the 2013 Final HRA Levy. The proposed breakdown of the Proposed Property Tax Levy by fund is shown below: 2013 2014 Dollar Change Percent Change Final Proposed From 2013 From 2013 TAX CAPACITY BASED TAX LEVY General Fund $20,657,724 $21,157,724 500,000$ 2.42% Debt Service 1,937,085 1,422,477 (514,608) -26.57% Capital Replacement Fund 842,700 1,342,700 500,000 59.33% Park Improvement Fund 810,000 810,000 - 0.00% Cap. Replace. Fund - Future Debt Service 265,432 645,007 379,575 143.00% Employee Administration Fund 200,000 200,000 - 0.00% TOTAL TAX LEVIES $24,712,941 $25,577,908 $864,967 3.50% The 2014 Proposed Property Tax Levy increase of 3.50% is consistent with the information the City Council adopted on September 3, 2013 and with the information presented on October 14, 2013. City Council Meeting of December 2, 2013 (Item No. 6a) Page 3 Title: 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing Fiscal Disparities For 2014, the City will be a net contributor of $3,670,487 of its tax capacity, which is $729,809 more than the 2013 net contribution of $2,940,678. This is not an actual cash contribution, but rather using that amount of tax capacity to be spread over all the other participants in the fiscal disparities program, thereby increasing the City’s tax rate to its property owners. This increase reduces the City’s overall tax capacity by approximately 1%. St. Louis Park experienced significant increases in its net contribution to the fiscal disparities pool over the last four years related to the development and redevelopment of its commercial sector of property. This significant activity resulted in a nearly steady or a slight increase in the overall valuation of the commercial sector of property in St. Louis Park. Therefore, the City fared much better during the economic downturn when compared to many other participants in the fiscal disparities program; many of which experienced decreases in the valuation of their commercial property. As a result, St. Louis Park then held a larger share of the commercial sector market, and due to this, is required to contribute a larger share to the program. 2014 HRA Levy This levy was originally implemented in St. Louis Park due to legislative changes in 2001 which significantly reduced future tax increment revenues. The City Council elected at that time to use the levy proceeds for future infrastructure improvements in redevelopment areas. Thus far, some of the HRA Levy proceeds have been used to fund infrastructure studies, analyses for future improvement projects and are currently being used to pay for the City’s share of Highway 7 and Louisiana. By law, these funds could also be used for other housing and redevelopment purposes. Given the significant infrastructure needs facing the City in the future, particularly transportation infrastructure needs, staff recommends that the HRA Levy continue at the maximum allowed by law for the 2014 budget year, which is consistent with the City’s Long Range Financial Management Plan. In accordance with MN state statute, the HRA Levy cannot exceed 0.0185% of the estimated market value of the City. Therefore, Staff has calculated the maximum HRA Levy for 2014 to be $949,359 based on data from Hennepin County, which is a $48,426 increase or approximately 5.38% from the 2013 HRA Levy of $900,933. Utility Funds The changes in utility rates for 2014 were formally adopted by the City Council on October 21, 2013 for consumption or services provided beginning on January 1, 2014. These rates are consistent with the goal of achieving long-term sustainability in the funds. With changes to the City’s solid waste, recycling and organics programs, 2014 will be used as the year of continued analysis with continued education and information on the City’s programs along with emphasis on strengthening the pay as you throw model. Attachment 1 provides a summary of the changes for a typical residential property. For 2014, the approximate cumulative effect on a typical residential property for all the utility rate adjustments would be an increase of $39.80 per year, or approximately $3.32 per month. This equates to an approximate 4.32% overall increase in utility rates for 2014 when compared to 2013. This calculation is based on a family of four using 30 units of water per quarter (22,500 gallons), and 60 gallon solid waste service. Estimated Impacts of City Changes in Property Taxes and Utility Rates for 2014 Estimated City Share of 3.50% Proposed Property Tax Levy Increase for 2014 As noted in the information in Attachment 2, the impact on the estimated City share of property taxes, based on a 3.50% levy increase, differs widely based on the value of a residential homesteaded property owner’s home. For example, some property owners would see a decrease of about $120.33 per year, or approximately 19.8%, while other homeowners could see an City Council Meeting of December 2, 2013 (Item No. 6a) Page 4 Title: 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing increase of about $185.83 per year, or approximately 5.1%. For the property owners who will experience a decrease in the City share of property taxes, this is due to the value of the property declining by more than the increase in the tax levy. The City’s share of the estimated 2014 preliminary property taxes for a median valued residential homesteaded property of $204,700 would be approximately $931.66, which is a decrease of $16.86, or about a 1.8% compared to 2013. These figures are only for the estimated City share and do not factor in any changes in other taxing jurisdictions including the school district and their referendums that were approved by voters. Estimated City Impact on Residential Homestead Property for 2014 for Taxes and Utilities 3.50% Levy Increase - Based on a 3.50% levy increase and realizing there are many variables in estimating the City impact on a residential homestead property, a “typical” property in St. Louis Park valued at approximately $204,700 for taxes payable in 2014 and having typical utilities as discussed earlier in the report, would experience an overall increase of approximately $1.91 per month or approximately $22.94 for the entire year. Of this estimated $22.94 increase, approximately $39.80 would be attributed to utility rate adjustments increase and a decrease of approximately $16.86 would be attributed to the City’s share of property taxes. NEXT STEPS: As the 2014 Budget process near completion, the following steps remain: December 2 Truth in Taxation Public Hearing and 2014 Budget Presentation. December 16 Council adopts 2013 Final Amended Budget, 2014 budgets, final tax levies and the CIP. On December 16, 2013, the City Council has the option of decreasing the 2014 Preliminary Property Tax Levies that were certified for the City and HRA back on September 3, 2013; however they cannot be increased. OTHER: As of November 25th, there were no letters or formal requests received in Administrative Services addressing the proposed increase in the City’s portion of property taxes to consider. CITY OF ST. LOUIS PARK ESTIMATED QUARTERLY UTILITY BILL ACTUAL 2013 AND ADOPTED 2014 Household Size 4 Units per quarter 30 Solid Waste Service 60-gallon Meter size 3/4 inch Actual Proposed Dollar Percent Service Type 2013 2014 Change Change Notes Water Per unit rate - Tier 1 1.44$ 1.49$ 0.05$ 3.47% Service charge 15.03$ 17.47$ 2.44$ 16.23% State testing fee 1.59$ 1.59$ -$ 0.00% Consumption 43.20$ 44.70$ 1.50$ 3.47% Sewer Service charge 13.43$ 13.83$ 0.40$ 2.98% Per unit 2.61$ 2.69$ 0.08$ 3.07% Consumption 78.30$ 80.70$ 2.40$ 3.07% Storm Drainage Service charge 16.00$ 17.60$ 1.60$ 10.00% Bassett Creek Fee*1.93$ 1.93$ -$ 0.00%Bassett Creek fee Solid Waste (includes tax)62.97$ 64.58$ 1.61$ 2.56% Total Bill without Bassett*230.52$ 240.47$ 9.95$ 4.32%Not including BCWMC Increase per quarter (dollars)9.95$ Increase per year (dollars)39.80$ * Since not all property owners would be charged this fee, it is not included in the dollar or percentage change in total bill. City Council Meeting of December 2, 2013 (Item No. 6a) Title: 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing Page 5 CITY OF ST. LOUIS PARK RESIDENTIAL ESTIMATED CITY SHARE OF PROPERTY TAXES 2014 PRELIMINARY PROPERTY TAX LEVY 3.50% INCREASE As of 12-02-13 * These are estimated figures at particular price points. Homes at the price points will not experience these exact changes. Assessed Market Val.Taxable Taxable Estimated City Tax Dollar Percent 2012 For 2013 For Market Market 2013 2014 Change Change Pay 2013 Pay 2014 Value 2013 Value 2014 150,000 123,600 126,260.00 97,484.00 608.93 488.60 -120.33 -19.8% 200,000 190,800 180,760.00 170,732.00 871.77 855.73 -16.04 -1.8% 214,600 204,700 196,674.00 185,883.00 948.52 931.66 -16.86 -1.8% 300,000 296,100 289,760.00 285,509.00 1,397.45 1,431.00 33.55 2.4% 350,000 343,000 344,260.00 336,630.00 1,660.30 1,687.22 26.93 1.6% 400,000 396,000 398,760.00 394,400.00 1,923.14 1,976.77 53.63 2.8% 500,000 505,000 500,000.00 505,000.00 2,411.40 2,531.11 119.71 5.0% 600,000 606,000 600,000.00 606,000.00 3,014.25 3,170.15 155.90 5.2% 700,000 707,000 700,000.00 707,000.00 3,617.10 3,802.93 185.83 5.1% Assumptions: 2013 and 2014 tax capacity rate based on Hennepin County information. Tax capacity rates increase from 1% to 1.25% for values over $500,000. = Median Value Home in St. Louis Park City Council Meeting of December 2, 2013 (Item No. 6a) Title: 2014 Proposed Budget, Tax Levy and Truth in Taxation Public Hearing Page 6 Meeting: City Council Meeting Date: December 2, 2013 Action Agenda Item: 8a EXECUTIVE SUMMARY TITLE: M.G.M. Off Sale Liquor License RECOMMENDED ACTION: Motion to approve Off Sale Intoxicating Liquor License for M.G.M. of St. Louis Park, LLC, dba MGM Wine and Spirits, located at 8100 Highway 7, Unit #348, for the license term through March 1, 2014. POLICY CONSIDERATION: Does the applicant meet all criteria necessary for approval of a liquor license? SUMMARY: The City received an application from M.G.M. of St. Louis Park, LLC; dba MGM Wine and Spirits, for an off-sale intoxicating liquor license for its proposed establishment located at 8100 Highway 7, Unit #348. The premises consist of 8,891 sq. ft. which includes a portion of the existing Party City business space, which is to be subdivided into four tenant business spaces within the Knollwood Mall property. Terrance Maglich, Vice President, and Michael Maglich, Chief Manager, each hold a 50% interest in the company. A public hearing was held at the November 18, 2013 City Council Meeting. At that meeting, the application for the off-sale liquor license did not receive enough votes for approval. The applicant requested that the City Council reconsider its action. A motion for reconsideration was then approved which placed the matter back before the Council. A motion was then approved to table consideration of the application until the December 2 Council Meeting. Excerpts from the November 18 meeting minutes are attached to this report. The store will be managed by Randy Weber, who has worked for MGM since 2001. Hours of operation will be Monday – Saturday, 8:00 am to 10:00 pm, which is the full range of hours allowed by Minnesota State Statute. A ten-year lease has been agreed upon with Knollwood Mall, LLC contingent upon M.G.M., LLC, being issued an off-sale liquor and tobacco license. Should Council approve the liquor license, no actual license is issued until final compliance is met City Inspections Department and State Alcohol and Gambling Enforcement Division. The Police Department has run a full background investigation, and nothing was discovered during the course of this investigation that would warrant denial of the license. The application materials were submitted properly and completed satisfactorily. The application and Police report are on file in the Office of the City Clerk. FINANCIAL OR BUDGET CONSIDERATION: Fees for this applicant include $500 for the police background investigation and $380 for the annual license fee. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: November 18, 2013 Meeting Minutes Excerpts Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening , City Manager City Council Meeting of December 2, 2013 (Item No. 8a) Page 2 Title: M.G.M. Off Sale Liquor License November 18 Council Meeting Minutes Excerpts 6c. Public Hearing – M.G.M. of St. Louis Park, LLC, Liquor License Ms. Stroth presented the staff report and advised that M.G.M. of St. Louis Park, LLC, has made application for an off-sale intoxicating liquor license at 8100 Highway 7 in the Knollwood Mall consisting of approximately 8,890 square feet. She stated it is possible that M.G.M. of St. Louis Park, LLC, may not open until March of next year, however, the State Alcohol Division recommended that the liquor license be approved to cover the current liquor license term through March 1, 2014. Acting Mayor Pro Tem Ross opened the public hearing. Mr. Terrance Maglich, Vice President, M.G.M. of St. Louis Park, LLC, approached the City Council and introduced Mr. Michael Maglich, co-owner of M.G.M. of St. Louis Park, LLC, and requested Council’s support in issuing the requested liquor license. Councilmember Hallfin asked if M.G.M. of St. Louis Park, LLC, has other stores. Mr. Maglich replied they have only one store in St. Louis Park and this is a new corporation. He stated they have been working with Rouse Properties and have reached agreement on retrofitting the Party City space and adding a new fascia on the building. Mr. Larry Jones, 8216 30 ½ Street, appeared before the City Council and asked if the City has a requirement for a one-mile separation between off-sale liquor establishments. Mr. Harmening replied that the City does not have this requirement. Mr. Jones requested that the City Council consider an ordinance with a one-mile separation but allowing liquor establishments already in existence to be grandfathered in. Acting Mayor Pro Tem Ross stated a possible ordinance could be discussed at a study session. Councilmember Mavity asked if the one-mile separation ordinance is present in other communities. Mr. Scott stated he has seen this type of ordinance in other communities and it is something the City Council could consider if it wishes. Councilmember Hallfin stated that Council has talked about the number of off-sale liquor establishments in the City and requested that Council have a study session discussion about this issue. He indicated there is an established liquor store across the street and if MGM moves in, it is going to hurt the established liquor store adding that the MGM store will be closer to Cub and business will shift from the established store to the new store. Acting Mayor Pro Tem Ross closed the public hearing. It was moved by Councilmember Santa, seconded by Councilmember Spano, to approve off-sale intoxicating liquor license for M.G.M. of St. Louis Park, LLC, dba MGM Wine and Spirits, located at 8100 Highway 7, Unit #348 (Knollwood Mall), for the license term through March 1, 2014. City Council Meeting of December 2, 2013 (Item No. 8a) Page 3 Title: M.G.M. Off Sale Liquor License The motion failed 3-2 (Acting Mayor Pro Tem Ross and Councilmember Hallfin opposed; Mayor Jacobs and Councilmember Sanger absent). Mr. Harmening stated that the motion required four affirmative votes, thus, the application for the off-sale liquor license was not approved. Mr. Maglich stated they have never been denied a liquor license in 35 years of business and this was a serious reflection on their company that enjoys a stellar reputation. He stated they probably would have pulled their application if City staff had given them any indication that their application would be turned down and he respectfully requested that the City Council reconsider its action. Acting Mayor Pro Tem Ross requested City Attorney guidance about the process for reconsidering. Mr. Scott advised there could be a motion to reconsider by anyone who voted against the motion, i.e., Acting Mayor Pro Tem Ross or Councilmember Hallfin, and at that time, the matter is back on the table and the City Council votes on whether to reconsider the liquor license application. He added it does not appear that the City Council has any basis for denying the liquor license application. Councilmember Mavity felt that Council should reconsider, adding she did not think this was a fair way to conduct business and apologized to Mr. Maglich. She also felt there were legitimate issues to consider and wanted to make sure Council considers this matter thoughtfully and thoroughly so that businesses are encouraged to come to St. Louis Park because they know they will be treated fairly. Mr. Maglich stated if someone had indicated there was a strong possibility that the license would be denied, they would not have gone forward with their application. He added this denial has a serious implication on damaging their company and reputation. Acting Mayor Pro Tem Ross stated it was not her intention to damage Mr. Maglich or his company, adding she understood their position and would reopen the matter for reconsideration. She stated it was her belief there are a lot of liquor stores in close proximity of each other in the City, adding she did not know MGM was planning to come to St. Louis Park and could not have given them any forewarning about the vote tonight. Mr. Scott advised that one option is for Acting Mayor Pro Tem Ross or Councilmember Hallfin to make a motion to reconsider for the purpose of allowing Mr. Maglich to withdraw their application, which means their application would not have been denied by Council. He stated another option is to bring a motion for reconsideration of this item at the next City Council meeting at which time there would be another vote on the liquor license application. Councilmember Hallfin stated he was fine letting the motion stand the way it is now. Acting Mayor Pro Tem Ross stated she wanted to be fair to Mr. Maglich and would make a motion to reconsider and bring the matter back before the City Council. It was moved by Acting Mayor Pro Tem Ross, seconded by Councilmember Santa, to reconsider the liquor license application for M.G.M. of St. Louis Park, LLC, dba MGM Wine and Spirits, located at 8100 Highway 7, for the license term through March 1, 2014. City Council Meeting of December 2, 2013 (Item No. 8a) Page 4 Title: M.G.M. Off Sale Liquor License The motion passed 4-1 (Councilmember Hallfin opposed; Jacobs and Sanger absent). Mr. Scott advised that it is now up to Mr. Maglich whether to withdraw their application. He added Council could also table the matter if there are four votes. It was moved by Councilmember Mavity, seconded by Councilmember Spano, to table the consideration of the off-sale intoxicating liquor license for M.G.M. of St. Louis Park, LLC, until the City Council’s next regular meeting of December 2, 2013. The motion passed 4-1 (Councilmember Hallfin opposed; Mayor Jacobs and Councilmember Sanger absent). Meeting: City Council Meeting Date: December 2, 2013 Action Agenda Item: 8b EXECUTIVE SUMMARY TITLE: Louisiana Station Area Framework Plan and Design Guidelines Report RECOMMENDED ACTION: Motion to accept the Louisiana Station Area Framework and Design Guidelines report. POLICY CONSIDERATION: Does City Council support the framework plan and design guidelines presented in the report? SUMMARY: There are three planning and zoning items on Monday night’s agenda that relate to the Southwest Light Rail Transit (SWLRT) station areas. Prior to City Council consideration of the individual agenda items, staff will provide a brief explanation of how these three separate items work together to guide development of the SWLRT station areas. The purpose of the Louisiana Station Area Framework and Design Guidelines is to guide both public and private development and infrastructure investment towards the desired character and vision for the station area. The Framework and Design Guidelines are advisory and are intended to complement the City’s policies and regulations. The City hired Hoisington Koegler Group, Inc. (HKGi) to facilitate the planning process and prepare the plan, which explores improved multimodal access to the station, land use/character, and design guidelines for the area. City Council discussed the concept plans at its Study Session on September 9, 2013. The report has evolved and expanded since then to reflect City Council comments, as well as comments from subsequent public input. Please review the full report on the City website (the link is below). City Council acceptance of the report will conclude this planning process. City Council need not adopt the plan or design guidelines at this time. The City will use the report as a guide when evaluating the SWLRT design and as a starting point for the upcoming form-based code process. It may be incorporated into, or referenced in, the Comprehensive Plan at a later date. FINANCIAL OR BUDGET CONSIDERATION: The total budget for this plan is $75,000. A Metropolitan Council Livable Communities Predevelopment Grant is funding 75% of the costs for the Louisiana LRT Station Area Plan. The City’s Development Fund is providing the 25% match. The grant expires on December 31, 2013, so the plan needs to be complete and accepted by the end of the year. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: • Discussion • Louisiana Station Area Framework and Design Guidelines Report (Report Link) (www.stlouispark.org/webfiles/file/community-dev/louisiana-planning-design-guidelines-DRAFT-131126.pdf) Prepared by: Sean Walther, Senior Planner Reviewed by: Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager Study Session Meeting of December 2, 2013 (Item No. 8b) Page 2 Title: Louisiana Station Area Framework Plan and Design Guidelines Report DISCUSSION BACKGROUND: The Louisiana Station Area Framework Plan and Design Guidelines project began in May 2013. The City hired Hoisington Koegler Group, Inc. (HKGi) to facilitate the planning process and prepare the plan. City staff and HKGi coordinated this planning effort with the SWLRT Preliminary Design being conducted by the Met Council and the on-going Transitional Station Area Action Planning (TSAAP) being conducted by Hennepin County Community Works. TSAAP has incorporated the City’s Louisiana Station Area Framework Plan and recommends certain opening day improvements. Purpose: The purpose of the Louisiana Station Area Framework and Design Guidelines is to guide both public and private development and infrastructure investment towards the desired character and vision for the station area. The final document is divided into three sections: (1) Context, (2) Framework, and (3) Design Guidelines. The Framework and Design Guidelines are advisory and are intended to complement the City’s policies and regulations. Public Input: City staff and HKGi gathered public input through an Advisory Committee, City Council Study Session, Community Meeting, Planning Commission Study Session, and several other stakeholder meetings. • Advisory Committee: The Advisory Committee members represent several of the neighborhoods, businesses, and property owners in the area. The advisory committee members – and affiliation – are listed below: o Sue Carson – Creekside Neighborhood o C. Colin Cox – South Oak Hill Neighborhood o Paula Evensen – Elmwood Neighborhood o Lenore Kaibel – MSP Property Management (Louisiana Oaks Apartments) o Michael Kelner – Hardcoat, Inc. o Robert Kramer – Planning Commissioner o Lisa Pannell – Brooklawns Neighborhood o Chad Pederson – Brooklawns Neighborhood o Sarah Schwabel – Oak Hill Neighborhood o Mark Reuter – South Oak Hill Neighborhood o Robert Riesselman – Park Nicollet Methodist Hospital o Duane Spiegle – Park Nicollet Methodist Hospital o Tom Whitlock – Brooklawns Neighborhood The Advisory Committee met five times over seven months. The committee provided valuable feedback on the vision, guiding principles, important connections, future land use, desired development character, as well as preferences regarding multiple concept plans that were generated for each of the LRT Station platform locations. • Community Meeting: A Community Open House was held on Wednesday, September 25, at the Municipal Service Center to offer residents and business owners a chance to review preliminary concept plans for the Louisiana Station Area. Approximately 25 participants reviewed the draft plans and shared ideas about ways to improve access and circulation around the future LRT station and about the land uses, character, and potential redevelopment of the area. Comments focused on developing strong connections to Study Session Meeting of December 2, 2013 (Item No. 8b) Page 3 Title: Louisiana Station Area Framework Plan and Design Guidelines Report surrounding neighborhoods, the Cedar Lake LRT Trail and Methodist Hospital. Many in attendance agreed with the office medical focus for land use in the district, but also wanted to provide opportunities for commercial space that would both benefit the employees and the surrounding residents. • Other Stakeholder Meetings: City staff met with seven other stakeholder groups over the past seven months, including several commercial business owners, residents of Meadowbrook Manor, Minnehaha Creek Watershed District, Planning Commissioners, and key property owners. The meeting at Meadowbrook Manor included a diverse group of ten adults and twelve children. Report Overview: In September, the City Council reviewed preliminary framework plans for the north and south station locations as well as the draft vision statement and guiding principles. With input received from the Council and community, HKGi worked with City staff to develop the final document. The presentation at the Monday, December 2 City Council meeting will focus on the core elements of the plan: the Vision and Guiding Principles, the Framework Plans (for both North and South station locations) and the Design Guidelines. • Vision: Envisioning the future Louisiana transit station area brings together long-term community plans and goals with more recent planning initiatives focused specifically on this transit station area. At the community-level, St. Louis Park has established a vision of creating and maintaining a very livable community where people choose to stay long- term. The City has adopted ten Livable Community Principles that embrace the best community design practices from the past and present for creating a complete and connected community. The vision statement for the Louisiana station area builds upon this community vision. As a major employment center with a growing medical/healthcare facility, attractive open spaces, regional trail connection, and proximity to regional roadways, the Louisiana transit station area has great opportunities to evolve into a unique and vibrant community destination for jobs, healthcare, and recreation. The Louisiana Station Area vision embraces the following key elements: o Louisiana/Oxford Employment Center: Preservation and integration of medical, office, industrial, and supporting commercial businesses that maintain and grow jobs. o Healthcare/Wellness District: Leveraging the growing demand for healthcare and healthy active lifestyles to create a unique wellness district. o Open Space And Recreational Destination: Connected open space and recreation assets, including walking, biking, and canoeing, for residents, employees, and the broader community o Louisiana Loop Streets and Trails: Loop streets and trails provide connections from Louisiana Ave to transit station, employment center, and healthcare/wellness district for residents, employees and visitors of the station area. o Pedestrian Pathway: Creation of attractive and identifiable pedestrian pathway between the transit station and the medical campus. Study Session Meeting of December 2, 2013 (Item No. 8b) Page 4 Title: Louisiana Station Area Framework Plan and Design Guidelines Report o Unique Sense of Identity: New public streets and spaces and private redevelopment contribute to creating a unique and identifiable place. • Guiding Principles: To support the master plan vision, 10 guiding principles have been established to clarify the priority directions for achieving the vision. These guiding principles provide a means for directing and evaluating future planning, designing, and investing in improvements to the station area. The guiding principles encompass the station area’s future identity, economic development, land use and building patterns, connectivity, parking management, and important community amenities. As the community moves forward with public improvements and private development projects in the station area, the guiding principles should serve as the first tool for evaluating projects regarding their fit with the master plan. The guiding principles are also intended to be touchstones for future City policies, plans, and decision-making related to the Louisiana station area (including form based zoning). Numbered for reference only, the following represent the ten guiding principles for the Louisiana station area: 1. Promote growth and investment in the Louisiana Ave station area as an EMPLOYMENT CENTER supporting a broad range of business sectors, including healthcare, office, industrial, and commercial. 2. Leverage the growing demand for healthcare to create a new district that links expanded MEDICAL services with HEALTH-CONSCIOUS/ WELLNESS lifestyle needs. 3. Capture the value potential of investing in high quality transit service, including maximizing transit RIDERSHIP, optimizing ECONOMIC DEVELOPMENT, and leveraging desirable STATION AREA AMENITIES for the surrounding business district and neighborhoods. 4. Provide a SAFE, CONVENIENT, and PLEASANT transit station center that incorporates user-friendly features, such walking access, bicycling access, vehicle drop-off/pick-up, bus connections, parking, and a transit plaza. 5. Create a unifying STATION AREA IDENTITY that builds upon its assets (such as large employment center, healthcare services, Minnehaha Creek, Cedar Lake Trail, surrounding neighborhoods), promotes its future potential, and provides a SENSE OF PLACE. 6. Create a CONNECTED AND COMPLETE STREETS NETWORK within the station area, including a transit-oriented loop street off of Louisiana Ave. 7. Design a CONNECTED WALK/BIKE NETWORK that creates a very pedestrian- and bike-oriented district, including a pedestrian pathway between the transit station and the medical campus. 8. Encourage TRANSIT-ORIENTED DEVELOPMENT that supports transit use, establishes a station area center, increases the mix and density of land uses, and improves the street environment. 9. MANAGE PARKING effectively to support station area parking needs while lessening the negative impacts on development potential and the pedestrian environment. 10. Create a WELL-CONNECTED and desirable network of parks, plazas and natural open spaces for the business district and surrounding neighborhoods. • Framework Plans: o North Station: A pedestrian only street or pathway creates a strong connection from the west end of the platform (located against the existing freight rail embankment) to Study Session Meeting of December 2, 2013 (Item No. 8b) Page 5 Title: Louisiana Station Area Framework Plan and Design Guidelines Report the hospital. Uses in the center of the district are focused on office and medical with opportunities for ground-level commercial/retail uses located along portions of Louisiana Avenue and a new public street running parallel to Oxford Street a block south. This street creates a new grid of streets to breakdown the existing large block pattern, developing a more pedestrian friendly character. The switching wye is converted to a pedestrian trail to connect the Brooklawns and Elmwood Neighborhood residents to the east edge of the platform and the Cedar Lake LRT Trail. Industrial uses flank the office medical uses in the core. o South Station: The station location immediately east of Louisiana and just north of the hospital is further enhanced with a transit plaza directly to the north and tied to a new public street loop connecting back to the park and ride located against the freight rail embankment. Office and Medical are again the focus of uses in the core of the district with industrial uses surrounding, both new development and preserved areas of industrial. Along the new loop street, ground level commercial/retail uses are envisioned. The opportunity exists for the hospital to create a new front door close to the east end of the platform with a building expansion The switching wye is converted to a pedestrian trail to connecting more east to west allowing the Brooklawns and Elmwood Neighborhood residents to connect to the station and ultimately to the trail network along Minnehaha Creek. • Design Guidelines: Connectivity to the station from the surrounding neighborhoods and the hospital is critical for the success of the Louisiana Station Area. As such, the design guidelines focus heavily on the design of the public realm. Representative street sections for all streets in the station area were developed to provide an understanding of the roadway, bicycle and pedestrian infrastructure as well as the relationship of buildings to the street. High quality building materials and green design principles are highlighted for building construction. Stormwater treatment is also a strong priority with the proximity of development to Minnehaha Creek. Utilizing the boulevards of public streets and developing on-site treatment technique are recommended within the guidelines. Report Organization: The final document is divided into three sections: (1) Context, (2) Framework, and (3) Design Guidelines. 1. Context: This section provides background on the project, the station area, and precedent planning projects. Chapter 1: Introduction • Provides a project overview, project goals, planning context, and potential station locations. Chapter 2: Existing Conditions • Examines current land use and development patterns, connectivity issues, and parks and open space networks- and identifies key constraints and opportunities. Chapter 3: Precedent Studies • Summarizes key takeaways from five precedent station area planning projects related to development around a healthcare/medical campus. Study Session Meeting of December 2, 2013 (Item No. 8b) Page 6 Title: Louisiana Station Area Framework Plan and Design Guidelines Report 2. Framework: This section describes the preferred vision, guiding principles, and future development patterns for the station area. Chapter 4: Vision + Guiding Principles • Presents the future vision and guiding principles for the Louisiana station area. Chapter 5: Framework Plans • Presents framework plans and descriptions of preferred future development patterns in the station area. • Four Framework Plans: o Access + Circulation Plan  Street Network  Pedestrian and Bike Network  Hospital Connection o Land Use + Development Plan o Parks + Open Space Plan o Illustrative Master Plan • All framework plans are developed for both north and south station alternatives. 3. Design Guidelines: The design guidelines provide written and graphic description of the desired design character for future development, infrastructure, and parks/open spaces in the station area. Chapter 6: Access + Circulation Design Guidelines • Addresses streets, pedestrian facilities, bike facilities, LRT station, and wayfinding/signage. It also establishes a street typology for the station area. Chapter 7: Land Use + Development Design Guidelines • Addresses site development and buildings, such as building relationship to the street, height, massing, and facade features. Chapter 8: Parks + Open Space Design Guidelines • Addresses parks, open spaces, stormwater management, public art, and a potential transit plaza. Meeting: City Council Meeting Date: December 2, 2013 Action Agenda Item: 8c EXECUTIVE SUMMARY TITLE: Business Park Rezoning of Properties near Hwy 7 & Louisiana Ave. S., Wooddale Ave. S., and Belt Line Blvd. RECOMMENDED ACTION: Motion to approve First Reading to rezone 42 properties for Business Park zoning and set second reading for December 16, 2013. POLICY CONSIDERATION: Does the City Council wish to rezone specified properties consistent with the Business Park designation in the Comprehensive Plan? SUMMARY: The City Council adopted the new Business Park zoning district in 2012. The intent of creating this district was to transition from current industrial uses to a wider variety of uses and allow higher densities in anticipation of light rail transit and development in the station areas. The district was designed to better meet market conditions by keeping some lighter industrial uses, allowing some new uses, and permitting higher densities. There are limits on heavy industrial, warehousing and outdoor storage; the intent was to phase out such uses over time. The Business Park zoning district is the first step towards evolving land uses and development around the LRT station areas. Several more planning processes will continue to refine the design and land uses. The Transitional Station Area Action Plans (TSAAP) are being finalized and along with other previous studies will provide the basis for additional refinements to zoning and codes for the station areas. The form-based code (FBC) process in 2014-15 will take a much more detailed look at properties in each station area and recommend specific code changes to facilitate transit-oriented development in and near the station areas. Of the 57 properties designated for Business Park in the City’s Comprehensive Land Use Plan, 42 are recommended for rezoning at this time. The properties that are not recommended at this time include the area in the southeast quadrant of Belt Line Boulevard and CSAH 25 which is under review with the SW LRT planning for a park and ride location and for opportunities as a “Joint Development” site as a part of the LRT project, and those whose owners are not in favor of changing the zoning on their property at this time. Please see attached map for properties recommended for rezoning. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Business Park Zoning Summary Ordinance – 1st Reading Rezoning Properties Planning Commission Minutes Excerpt Map of Recommended BP Zoning Changes Prepared by: Meg J. McMonigal, Planning and Zoning Supervisor Reviewed by: Michele Schniker, Housing Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of December 2, 2013 (Item No. 8c) Page 2 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd DISCUSSION Background: The Business Park zone was developed to be a transition zone for the areas around the LRT stations and other industrial areas in the city that are experiencing changes. The intent is to allow a wider variety of uses, as has been recently requested in many of the industrial areas, and work toward the transformation of the station areas into more mixed use and transit-oriented development (TOD) areas. The Comprehensive Plan designated some of the city’s more visible industrial areas near LRT stations for Business Park. The intent was to encourage the creation of employment centers that accommodated a greater mix of uses, higher quality of design, greater diversity of jobs, higher development densities and increase property values. Rezoning the designated properties to Business Park will bring them into compliance with the Comprehensive Plan. Process: Following adoption of the new Business Park zoning district, City Council directed staff to move forward with rezoning the properties designated Business Park on the Comprehensive Land Use Map. This includes 57 properties (41 owners). Several meetings were held with business and property owners, and two larger open-house meetings were held in September 2012. Additional contact with property owners also occurred, including meetings, phone calls and email communications. On November 7, 2012 a public hearing was held at the Planning Commission. The Commission recommended approval with the exception of three properties whose owners objected to the rezoning prior to the public hearing. Three additional property owners spoke at the hearing, including Mr. Saliterman, who objected to rezoning his five properties. The others had questions and/or were new property owners. Staff agreed to re-contact all property owners and discuss rezoning properties further. Three property owners originally requested that they not be included in the rezoning and remain as is, zoned Industrial Park or General Industrial. These are: 1. Mr. Ben Smith, Burch-Keats LLC, 5100 35th Street West • American Tire (distribution) 2. Mr. Dick Nelson, Nelson Development Company, 3501 State Hwy 100 • Desq Office Solutions, Centerpoint Massage School 3. Mr. Don Kasbohm, DMD Properties LLC, 5725 State Hwy 7 • Former McGarvey Coffee site The first two property owners listed had concerns about the needs of tenants who might wish to expand the amount of warehousing done on-site. The Business Park District restricts warehousing to no greater than 50% of the building; if the building is already over 50%, the warehousing can continue indefinitely, but may not be expanded. This means that all the existing uses in the properties to be rezoned may continue, but cannot expand under current state law. The third property owner purchased the McGarvey Coffee site intending to redevelop the site for residential. In June, 2013, postcards were sent out to all current property owners about the rezoning with links to information on the city’s web site and contact information for two planning staff. Staff City Council Meeting of December 2, 2013 (Item No. 8c) Page 3 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd met with two of the property owners, Mr. Ben Smith and Mr. Mark Saliterman. On August 26, 2013, the City Council directed staff to schedule First Reading to rezone the properties with the Planning Commission recommendation to except those properties whose owners formally objected to the proposed rezoning. Exceptions: Originally all of the properties shown in the City’s Comprehensive Land Use Plan as Business Park were recommended for rezoning. Some property owners objected to the change, for various reasons as outlined in the Planning Commission discussion above. In addition, since the initial consideration, the property to the southeast quadrant of the intersection of CSAH 25 and Belt Line Boulevard has undergone much discussion on potential land uses. It is currently shown as a park and ride site in the draft LRT project documents, and the city staff is working with the Southwest Project Office to consider it for a “Joint Development” site. Joint Development would likely include a mixed use development with structured parking. Additional work is needed on the Joint Development or Mixed Use concept and will continue over the coming months. The city also recently received a grant from Met Council to pursue and consider a new type of regulations in the LRT station areas called “form-based codes.” This type of code is similar to the design guidelines processes we have undertaken in various areas around the city where the design is essentially laid out in advance of development and expectations are known. This would allow more flexibility in uses, and as it is developed could overlay or replace the Business Park zone. Residential uses would fit into this framework as well. The time frame for developing this ordinance is 2013-14. Recommendation: In addition to the Planning Commission recommendation, it is recommended that the several parcels located east of Belt Line Boulevard and south of CSAH 25 (north of trail and tracks) not be rezoned at this time, in order to continue discussion on their future land use. Some of the properties are shown as a Park and Ride site for the Beltline LRT station and further discussion for a “Joint Development” as a part of the SW LRT project is under discussion. City Council Meeting of December 2, 2013 (Item No. 8c) Page 4 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd Business Park Zoning Summary The Business Park Zoning District is based on the recommendations of the 2030 Comprehensive Plan. The intent statements from the Comprehensive Plan regarding the new district are: • Encouraging the creation of significant employment centers that accommodate a diverse mix of office and light industrial uses and jobs. • Application of the category for larger sites that can be redeveloped to provide: § A greater diversity of jobs § Higher development densities and jobs per acre § Higher quality site and building architectural design § Increased tax revenues for the community • Appropriate uses may include office, office showroom-warehousing, research and development services, light and high-tech electronic manufacturing and assembly, and medical laboratories. • Some retail and service uses may be allowed as supporting uses for the primary office and light industrial uses of the employment center. Summary Table – Business Park compared to Office and Industrial Park Performance Standard / Use Business Park Office Industrial Park Outdoor storage Prohibited Prohibited Accessory Use Hours of operation Limited when adjacent to residential No restrictions Permit needed for overnight use when adjacent to residential Offices Permitted Permitted Conditional Use Permit Banks / Medical Offices Permitted Permitted Not permitted Restaurants / Retail / Service Permitted if < 25% of building Permitted Permitted only in a Planned Unit Development Light manufacturing Conditional Use Permit Not permitted Permitted Heavy manufacturing Not permitted Not permitted Permitted Warehouse / Storage Permitted if < 50% of the building Not permitted Permitted Large item retail (i.e., furniture) Permitted if < 15% of the building Not permitted Permitted if < 15% of the building Planned Unit Developments Only jobs oriented Unrestricted Only retail / service Setbacks when adjacent to residential 30 feet or building height Half of building height 35 feet or use of a formula Maximum building height 110 feet / 55 feet if adjacent to single family residential 240 feet 75 feet Maximum floor area ratio 2.0 1.5 0.5 City Council Meeting of December 2, 2013 (Item No. 8c) Page 5 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd ORDINANCE NO.____-13 AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE CHANGING ZONING BOUNDARIES OF 42 INDUSTRIAL PROPERTIES NEAR HIGHWAY 7 AND LOUISIANA AVENUE S., WOODDALE AVE. S., AND BELT LINE BLVD. TO BUSINESS PARK THE CITY OF ST. LOUIS PARK DOES ORDAIN: Section 1. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 12-29-Z). Section 2. The St. Louis Park Zoning Ordinance adopted December 28, 1959, Ordinance No. 730; amended December 31, 1992, Ordinance No. 1902-93, amended December 17, 2001, Ordinance No. 2216-01, as heretofore amended, is hereby further amended by changing the zoning district boundaries by reclassifying 42 Industrial zoned properties near Highway 7 and Louisiana Avenue S., Wooddale Ave. S., and Belt Line Blvd. to Business Park zoning as indicated on the attached map. Section 3. The contents of Planning Case File 12-29-Z are hereby entered into and made part of the public hearing record and the record of decision for this case. Section 4. This ordinance shall take effect fifteen days after its publication. First Reading December 2, 2013 Second Reading December 16, 2013 Date of Publication December 26, 2013 Date Ordinance takes effect January 10, 2014 Reviewed for Administration Adopted by the City Council December 16, 2013 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney City Council Meeting of December 2, 2013 (Item No. 8c) Page 6 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd OFFICIAL MINUTES - EXCERPT PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA NOVEMBER 7, 2012 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Claudia Johnston-Madison, Robert Kramer, Richard Person, Carl Robertson, MEMBERS ABSENT: Lynne Carper, Dennis Morris, Larry Shapiro STAFF PRESENT: Meg McMonigal, Gary Morrison, Julie Grove, Nancy Sells 1. Call to Order – Roll Call 2. Approval of Minutes of September 19, 2012 Commissioner Robertson made a motion to approve the minutes of September 19, 2012. Commissioner Johnston-Madison seconded the motion, and the motion passed on a vote of 4-0. 3. Public Hearings A. Business Park Rezoning of 57 Properties Location: Properties near Hwy. 7 and Louisiana Ave. S. Wooddale Ave. S., and Beltline Blvd. Applicant: City of St. Louis Park Case No.: Case No. 12-29-Z Meg McMonigal, Planning and Zoning Supervisor, presented the staff report. She stated that the intent of the Business Park Comprehensive Land Use Guide and Zoning Designation is to increase the number of jobs per acre, maintain business employment areas within St. Louis Park, and allow for redevelopment in accordance with current market trends for office and related business activities. Julie Grove, Economic Development and Planning Assistant, spoke about the public process. Several meetings were held with property owners in 2009 when the Comprehensive Plan designation was changed. A series of open houses were held in the summer of 2012 regarding the rezoning to Business Park. Several neighborhood representatives also attended the open houses. The recent public hearing notice was sent to specific property owners and to all properties within 350 feet of parcels proposed for rezoning. Ms. Grove said staff also met separately with any property owner requesting a meeting. Correspondence also occurred between city staff and several property owners. Ms. McMonigal stated that in meetings with property owners there was the opportunity to thoroughly review the Business Park zoning. She said most of the property owners staff met with would like the property rezoned. Three owners, identified in the staff report, do not want their properties rezoned. City Council Meeting of December 2, 2013 (Item No. 8c) Page 7 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd Ms. McMonigal reviewed the proposed district. She explained that most of the 57 properties are in the older industrial areas and areas that are near future transit stations for light rail transit. She said a great deal of time went into developing the idea of the district, including the Industrial Study which was done in 2005, and from requests for a variety of uses from property owners. Chairperson Kramer asked about the immediate effect on some of the properties which would be rezoned. Ms. McMonigal explained that all of the properties are zoned General Industrial or Industrial Park. They can continue any uses under those zoning districts for as long as they like. If they discontinue them for a year, they can’t reuse the buildings for those uses that are no longer permitted in the Business Park District. In addition to common uses allowed in industrial areas and Business Park there are a few more uses allowed in the Business Park areas. It opens it up to more office, more retail, and service uses. Ms. McMonigal concluded by saying it is a step in that direction, not a wholesale change. Chairperson Kramer asked about one year’s lapse and the non-conformity rule. Gary Morrison, Assistant Zoning Administrator, stated that after one year’s lapse the non-conformity technically goes away. If the use becomes less intense, it can’t necessarily go back to increasing the non-conformity. The City usually accommodates or works with property works in this situation and it hasn’t been a problem in the past. Commissioner Robertson asked why the zoning should be changed on the three properties whose owner’s wish to opt out. Ms. McMonigal responded that the city is trying to accommodate future land uses and move towards a certain direction. If the properties continue or expand industrial or heavy truck uses then it will be a longer period before they turn over. Chairperson Kramer opened the public hearing. Mark Saliterman, 4725, 4301 and 3113 Lynn Ave. S., said he requested that his properties not be included in the rezoning. He commented that the rezoning has been discussed for a long time. He said the Industrial Study is five years old and a lot has changed in the economic world. He said the office market is probably the worst market in real estate now. Mr. Saliterman said at one of the open houses he asked why a rezoning was proposed. The response was to reduce truck traffic and to have people travel by light rail and work in office buildings right there. When he asked who would build office in this market he was told this was a project for the long term. He said to force people to change to an office environment when it’s the worst environment out there doesn’t make any sense. He spoke about multi-tenant situations. He has 15-20 different occupants in one building. If one goes vacant for one year it would affect the entire building. He’d have a 10,000 sq. ft. warehouse in the middle of a complex which can no longer be used for warehousing. Mr. Saliterman said when he asked staff at the open house where workers would eat and shop if they traveled by light rail he was told there would be small commissaries in office buildings. He said he made his feelings known to staff and then wrote a letter to the Mayor. City Council Meeting of December 2, 2013 (Item No. 8c) Page 8 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd Mr. Saliterman spoke about the desire for less truck traffic. He noted that the city just approved a huge expansion for Nordic Ware which has an enormous amount of truck traffic. He said the trucks aren’t coming from his corridor, they are coming from Nordic Ware. He said the high end office which would be built probably wouldn’t have workers using light rail, which would result in more car traffic. Mr. Saliterman stated that over the years he’s been buying properties to redevelop. The proposed rezoning would stop the redevelopment that owners are already implementing. He said opting out might be a good thing. Mixed use might be a good thing. He suggested something other than office, medical and light industrial would be good. He stated that with rezoning, the values of properties will drop dramatically as the options for the new buyer will be limited. He said the city is confining this too much and thinks the rezoning needs to be reconsidered, at least in his area. Don Kasbohm, 5605 W. 36th St., said he recently acquired the former McGarvey Coffee site at 5725 State Hwy. 7. He said the economy is currently very strange. He said he’s had 3,000 sq. ft. vacant at his office building for two years. There is currently too much office space for the market. He said the McGarvey site is a logical place for an apartment building. It’s not appropriate for medical office or restaurant. Building office buildings doesn’t bring jobs. Industrial is better right now for keeping jobs. Mr. Kasbohm said he strongly hopes that he can opt out of the rezoning as his property value will drop, and he just bought the property. Ben Smith, 5100 W. 35th St., said his building is very solid and not obsolete. He said he commends the staff and has been extremely impressed over the years with the business acumen and workability of the staff to get things done. He said approximately five years ago he met with staff about his building and the industrial park and was told because of the limited amount of industrial space within St. Louis Park, that segment and his building in particular would remain industrial He spent $2.5 million on an addition along with refurbishing his building and leased it to American Tire. It has been a very successful business and the building has a lot of economic value. Mr. Smith said he would have appreciated knowing about the rezoning before he put a lot of money into his building. He said the economic hardship would be catastrophic to him since he just put on a $5 million loan for the expansion and renovation. Mr. Smith said Ms. McMonigal stated that opting out delays the properties from conforming into new zoning which tells him that the city doesn’t like his new building. He said he would have liked to know that five years ago when he expanded. He said it is a viable building. It has been completely refurbished. Mr. Smith said he has had several meetings with staff, including meeting with Adam Fulton, Planner. He said Mr. Fulton stated in no uncertain terms that his building would not conform to any of the uses proposed and very likely he would be able to voluntarily enter the zoning at a time when the building does fit. Mr. Smith said another property owner, Dick Nelson, 3501 State Hwy. 100, was told the same thing five years ago. Mr. Nelson asked Mr. Smith to pass this information on as he could not attend the public hearing. Mr. Smith concluded by saying there is nothing wrong with opting out, and it is a reasonable alternative, especially if the alternative would diminish the building’s value. He remarked that Nordic Ware which has a very large building, lots of truck traffic, and City Council Meeting of December 2, 2013 (Item No. 8c) Page 9 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd dock screening was not included in the rezoning. He remarked that a City owned lot directly north of his building is being used as a car impound lot. It is not a sightly use, and it isn’t included in the rezoning. He encouraged the Commission to take their time on this issue and listen to the concerns of property owners. Mr. Kasbohm said the idea of Business Park is not a bad idea. He said the one thing all his commercial advisors told him about his property, the former McGarvey Coffee site, is that the site is an island. There is no synergy. The Business Park zone does not work for his site at all. Chairperson Kramer closed the hearing as there was no one else present wishing to speak. Chairperson Kramer asked why the Nordic Ware building was not included in Business Park. Ms. McMonigal responded Nordic Ware is not included in the proposed Business Park District because it is a large manufacturing company and without a wholesale change it will remain there for a very long time. Commissioner Robertson said Business Park includes 12 different permitted uses, not just office. It includes 9 other uses permitted with conditions, and more with a Planned Unit Development. He said he thinks the three property owners mentioned in the staff report provide good arguments for opting out. He said one is a lone property, and the other two are on the very edge of the business park. Leaving them as they are wouldn’t disrupt the feel of the rest of the Business Park. Commissioner Robertson said he’d like to move ahead on the rezoning and allow the three properties to opt out. He said he thought Mr. Saliterman’s properties were appropriate for Business Park. Commissioner Johnston-Madison said the Commission has spent a considerable amount of time discussing Business Park zoning. She said she has always liked the idea of Business Park. She said she agrees with Commissioner Robertson’s remarks about the three properties being able to opt out. She said the city needs to be careful with the properties on the south side of Hwy. 7. Those property owners should also be allowed to opt out. Commissioner Person said he agreed with the comments made about opting out for the three properties mentioned in the staff report. Chairperson Kramer said if a blighted area, desperate for change, was being discussed he would support Business Park rezoning. He said he is bothered about the proposed changes. There may be other property owners who didn’t understand about opting out. Commissioner Robertson said he trusted the notification process. He said he has talked to a number of owners in the area who are encouraged and behind the whole process. Commissioner Robertson made a motion recommending approval of the rezoning of the properties with the exception of those mentioned in the staff report who have requested to opt out. Commissioner Johnston-Madison seconded the motion. The Chair reopened the public hearing. City Council Meeting of December 2, 2013 (Item No. 8c) Page 10 Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd Mr. Smith requested that the motion specifically identify his property and the other three properties mentioned, and perhaps the Saliterman properties. Commissioner Robertson said the staff report is a public document and is referenced in the motion. Martha Arneson, representing the property at 4601 Hwy. 7, said she has not officially decided about opting out. She said there may be other property owners who weren’t aware of this option. Ms. McMonigal said staff can go over all the properties and officially talk to them a little bit further. A number of meetings were held when the Comprehensive Plan designation was changed. Two meetings were held this summer and two notices were sent to all property owners and staff has talked to many, many of the property owners. That information can be documented and put together and staff will continue contacting owners a little further. She said perhaps the phrase “opting out” shouldn’t have been used. What is being proposed is a rezoning of several properties. The public hearing process is held to determine if the properties should be rezoned. Marv Dean, said he purchased 3200 Lynn Ave. S., formerly Superior Manufacturing, in mid-September. He said he did not know about the proposed rezoning. He said staff would not have known to contact him as he is a new owner. The Chair closed the public hearing. Chair Kramer said he opposed moving forward with the request. The motion passed on a vote of 3-1 (Kramer opposed). Ms. McMonigal said staff would recontact property owners again before the request goes before the City Council. E 0 0.25 0.50.125 Miles Zoning Map: Parcels Proposed for Rezoning to Business Park City of St. Louis Park Zoning Printed November 20, 2013 BP - Business Park Not recommended for rezoning MX - Mixed Use C1 - Neighborhood Commercial C2 - General Commercial O - Office IP - Industrial Park IG - General Industrial ZONING DISTRICT SPL - Split (within >1 district) POS - Parks & Open Space R1 - Single Family Residential R2 - Single Family Residential R3 - Two-Family Residential R4 - Multiple-Family Residential RC - High-Density Multiple-Family Residential City Council Meeting of December 2, 2013 (Item No. 8c) Title: Business Park Rezoning of Properties near Hwy 7 and Louisiana Ave, Wooddale Ave, & Belt Line Blvd Page 11 Meeting: City Council Meeting Date: December 2, 2013 Action Agenda Item: 8d EXECUTIVE SUMMARY TITLE: SWLRT Station Area Form-Based Code Grant Contract RECOMMENDED ACTION: Motion to Authorize the Mayor and City Manager to execute a contract with CodaMetrics to develop and write a form-based code for the three St. Louis Park Southwest Light Rail Transit (SWLRT) station areas. POLICY CONSIDERATION: Does the City Council wish to pursue the development of a form- based code for the three St. Louis Park SWLRT station areas and hire a consultant to lead the process? SUMMARY: The Council approved the grant application for a Livable Communities Demonstration Account-Transit Oriented Development (LCDA-TOD) Pre-Development grant from the Metropolitan Council on May 20, 2013 to develop a form based code. The City was awarded the grant in July, 2013. Staff released a Request for Proposals (RFP) in September, 2013 for a consultant to lead the form based code process and develop the code. Staff is recommending CodaMetrics, based in Chicago, IL for this task. The project is expected to begin in January, 2014 and is expected to end in May, 2015. City staff is considering a form-based code (FBC) as a regulatory tool to ensure that future development in the three Southwest LRT station areas aligns with a vision as created by the community. Form-based codes define the physical form of an area focusing on such standards as building height, setback, massing, parking lot placement and street design. The intent of a FBC is to better create walkable, mixed-use communities which work well in transit station areas. Previous and current planning studies in each of the station areas provide a solid foundation for developing the FBC. Using these documents as a starting point, the consultant will work with the City on extensive public engagement to further develop the vision for each station area. This process will provide a basis for the actual code regulations. Through the code development process, the consultant will work with the Planning Commission, Council, developers, citizens and other community groups to develop the St. Louis Park FBC. FINANCIAL OR BUDGET CONSIDERATION: $25,000 City Match. ($125,000 total with $100,000 grant 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: Scope of Services Prepared by: Ryan Kelley, Associate Planner Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager Scope of Services The following scope defines the method of developing the form-based codes for the three station areas. This process is combined for the three areas with one working group and development of one code that applies separately to each area. Phase 1. Initial Review and Analysis TASK 1A: SITE ANALYSIS The first task of the project is intended to familiarize the Consultant with each station area and the city as a whole. A thorough review will be conducted of all development regulations, plans, and policies that impact the area's development. This review will give us a base of knowledge upon which to begin our more detailed zoning analysis. The Consultant will assess existing conditions, including a photographic inventory of the current station areas and a catalog of the physical characteristics of the lot developments and rights-of-way as well as the character of the surrounding neighborhoods. TASK 1B: GENERATE NECESSARY BACKGROUND MAPS In advance of the first visit, the Consultant will work with the city to gather appropriate GIS or CAD base information to create maps of the study areas. The maps will likely be used during roundtable interviews, depending on the topics discussed. The maps will continue to play an important role throughout the project as a way to communicate information with the working group, key stakeholders, and the public at large. TASK 1C: ESTABLISH A WORKING GROUP To assist in building community support and creating champions for the new code, the City will establish a 10 to 12 person working group, inclusive of planning and zoning staff. The working group, led by staff, will be responsible for assisting with informing the community of the code process and progress, representing the community as a whole, reviewing the drafts of the code in detail, and helping to guide the coding process. During the first site visit, a kick-off meeting will be held with staff and the working group to introduce the team, the process, and form-based codes in general. The Consultant will meet with the working group during each scheduled site visit. Additional meetings may be required of the working group to review specific items prior to code drafting and to review the code drafts. TASK 1D: MEDIA COVERAGE AND WEBSITE The Consultant will work in conjunction with city staff to determine the appropriate message to communicate with the citizens of St. Louis Park. Two press releases will be drafted that the city will then distribute to local media (online and print publications, radio, blogs, etc). A brief summary of the project scope to be posted on the city's website will be created, and will provide brief updates throughout the project. The Consultant will also provide digital project materials, which can be posted to the project website. TASK 1E: INTERVIEWS During the first visit to St. Louis Park, the Consultant will meet with the working group and key city staff to set a common base of understanding for the project's goals and November 2013 City Council Meeting of December 2, 2013 (Item No. 8d) Title: SWLRT Station Area Form-Based Code Grant Contract Page 2 schedule. During these meetings, zoning concerns as well as opportunities and constraints related to the new code will be discussed. The Consultant will also conduct up to five roundtable interviews with selected stakeholder groups or individuals. These meetings are an opportunity to gain further insights into the zoning issues of the station areas from people who have a specific interest in the area. The Consultant will work with the city to select appropriate roundtable participants. Phase 2. Public Design Process TASK 2A: DESIGN WORKSHOP I The first public workshop will take place during the second site visit. This workshop will include a short education component to discuss zoning in general, the advantages of employing form-based regulations, and the starting points for developing a code for the areas (the comprehensive plan and station area planning). This discussion will be clearly illustrated to ensure that all participants, regardless of their background, understand the concept, basic terms, and impact on St. Louis Park. The primary goal of this workshop is to establish a sense of the expected image for the area through the use of a robust visual preference survey (VPS). In our VPS, participants are shown a series of PowerPoint slides, each containing photographs related to appropriate categories or geographic areas. To offer a full range of options, the images are typically drawn from local, regional, and national examples. Participants score each image then images with the highest and lowest overall scores are discussed at smaller table gatherings. The results of this process are used to help establish preferred building and street types. Other activities will be designed based on discussions with the working group and staff and the key person interviews in Phase 1. These activities may include confirmation or further clarification of specific expectations or elements to include, either by table exercises or discussions, or "dot" voting on posters. The results of the public workshop will be summarized and reported back to the city and working group, and ultimately inform the preparation of the code. Summary sheets with brief descriptions will be provided in digital format for the project website. TASK 2A: DESIGN WORKSHOP II The second public workshop will take place during the third site visit. Beginning with the positive images identified for the different geographic areas during the first workshop, the actual neighborhood components will be defined and mapped during this workshop. Participants will determine the types of building masses and frontages appropriate for different areas as well as other significant neighborhood elements such as open space, continuity of all modes of transportation access. For those who did not attend the first meeting, the Consultantprovide a recap, including a summary of the livability principles from the comprehensive plan, the results of the planning processes currently underway, and the current physical status of the sites and surrounding areas. Basic parameters will be defined from which to design the sites (i.e. adding to the mix of housing types in the community, including a variety of public spaces, the number of households needed to support retail, possibly drawn from any market information established by RCLCO during the station area planning process). The purpose of these preliminary presentations is to equip the November 2013 City Council Meeting of December 2, 2013 (Item No. 8d) Title: SWLRT Station Area Form-Based Code Grant Contract Page 3 community with the knowledge needed to begin planning the sites. The main activity of the first workshop will be a fun and engaging exercise to help determine the appropriate development types within each station area. Attendees are typically organized in small groups of 6 to 10 people with a trained leader for each group. Each group works independently but in parallel on defining site characteristics, the important building elements for each location, and potentials for site layout. The Consultant will either employ a system of diagramming using markers and maps, or a series of playing pieces (scaled building, open space, and street forms laid out on an aerial map of the same scale) to guide the groups through exercises on the future of the redevelopment areas. For every task, groups are encouraged to write any notes they think would help communicate their ideas directly on the map. The large group reconvenes, and one person from each group presents their plan, focusing on the community's goals, creating a shared vision. Typically, considerable consensus is reached on expected neighborhood, street and building forms. These results will help define the code components and requirements for each district. TASK 2C: GRAPHIC ILLUSTRATIONS Based on the results of the two workshops, a series of graphics will be developed. First, an illustrative plan will be created for each station area, illustrating the layout and variety of components determined appropriate by the community. Second, street sections and plan vignettes will be developed to illustrate appropriate street design. And, finally, a series of transformation illustrations will be developed for each of the station areas. These illustrations will be created by Steve Price with Urban Advantage. (See www.urban-advantage.com for examples of these types of illustrations.) All of these graphics should be posted on the website for community comment and review during the code writing process. TASK 2D: PUBLIC OPEN HOUSE During the final stages of the code revisions, a public open house will be held to provide the community the opportunity to discuss the draft code with the Consultant, staff, and the working group. Posters of the key code components will be created, allowing one on one interaction between the code drafters and reviewers and individual community members. This open house will be held one to two hours prior to an initial (Task 5A) Plan Commission presentation, during the final visit. Comment cards will be available for the community to record comments, and staff and the Consultant will record community concerns for discussion with the working group and revision to the draft. Phase 3. Drafting the Form-Based Code TASK 3A: DESIGN PARAMETERS FOR THE FORM-BASED CODE The code will include an overview, a regulating plan, building form, street, and open space standards. The document will provide necessary text descriptions but will be a highly illustrated document to graphically communicate the form-based regulations. Plan drawings, elevations, and tables will be utilized throughout the form-based code to detail the requirements, ensuring that they are easily understood by city staff, developers, and residents and business owners alike. Below is a description of the major sections of the code: November 2013 City Council Meeting of December 2, 2013 (Item No. 8d) Title: SWLRT Station Area Form-Based Code Grant Contract Page 4 OV E RVIEW An opening section will be developed that will introduce the code to the user, describing the process for using the code, and approving development proposals. The Consultant will review the existing development processes in the city and will work with staff to revise that process for the form-based regulations, creating a list of appropriate submittals and determining what level of approval process is necessary. As is necessary to ensure the efficient implementation of the new standards, related review procedures and code administration will be amended and new terms defined, both by text and graphics. REGULATING PLAN The regulating plan will show the boundaries of each station area, and will color code or otherwise depict the intended location of the building forms, streets, and use districts defined in the code. Other elements of the code specific to a particular location may also be included on the regulating plan, such as locations for tower elements, different build-to zones, special streetscape requirements, or other civic/open space. BUILDING FORM STANDARDS The Consultant will develop an appropriate variety of building or frontage types for each location. In this way, an appropriate scale of development is ensured for the surrounding area. For each building type, the code will establish standards for building placement, height, street facade characteristics, entrances, parking, access, service, use, density, and special design features. Other design requirements, such as building materials and balcony design, may also be discussed as appropriate for the development climate. CIVIC SPACE/STREET/BLOCK STANDARDS Most zoning codes do not include street types, even though the design of the street directly affects the character of an area. The Consultant will work with city staff to define street types for the station areas to ensure that the streets are not developed or redeveloped outside the context of the districts. For each street type, the code will establish a range of acceptable standards for sidewalks, travel lane widths, parking, curb geometry, planting and furnishing zones, and street trees. Additionally, with the anticipated redevelopment of larger parcels, block sizes and street/subdivision configurations will be defined for those types of parcels, to ensure walkability and a high level of street connectivity. Standards will be set for types of open spaces, such as plazas, greens, and small parks, and how these spaces are required or encouraged on private lots will be defined. Uses will also be addressed within the new code, aligning use definitions and nomenclature with the existing code, but creating a series of broader use categories to result in a much simplified use table. Parking will be addressed to introduce appropriate rates for station areas, typically using a series of credits to reach realistic requirements. Landscape and signage will also be modified to reflect the unique characteristics of these station districts. TASK 3B: INTEGRATION OF THE FORM-BASED CODE The Consultant will assist St. Louis Park staff with the task of integrating the form-based overlay into the city's existing code framework. Existing numbering November 2013 City Council Meeting of December 2, 2013 (Item No. 8d) Title: SWLRT Station Area Form-Based Code Grant Contract Page 5 systems and outline organization will be utilized to fold the regulations into the existing structure. However, because form-based codes are heavily illustrated, the method of integrating those illustrations with ease and efficiency will need to be coordinated with staff. Procedures will be defined as discussed in the Overview section above, given the structure and day-to-day processes the city is currently using along with any existing state and local legal constraints. Duncan Associates will provide any necessary legal review requested. Phase 4. Refining the Form-Based Code TASK 4A: PRESENTATION OF FIRST DRAFT On the fourth site visit, the draft code will be presented to staff and the working group. The city will be responsible for collecting comments, suggestions, and questions from these meetings and consolidating them into a series of clear action items for revision or response by the Consultant. One meeting is included for this task; however, additional meetings without the Consultant being present may be required to ensure consensus is reached on the needed revisions to the initial draft. The Consultant can also be available for conference calls or web-based meetings with the working group and staff during this period. TASK 4B: MEETINGS WITH STAKEHOLDERS The Consultant will also present the draft code at up to two meetings with key stakeholders, such as residents, property owners, or potential developers, at a time determined appropriate by staff and the working group. These meetings can be conducted as roundtable discussions to accommodate multiple people. City staff will attend the meetings to assist the Consultant in determining how to address any concerns brought to light. TASK 4C: PRESENTATION OF SECOND DRAFT The presentation of the second draft of the code will follow the same process as the presentation of the first draft. Changes to the document will be highlighted and color-coded for ease of review. Once again, the city will be responsible for collecting comments, suggestions, and questions from these meetings and consolidating them into a series of clear action items for revision or response by the Consultant. Note that the Public Open House is also scheduled during this time period, to be determined when the draft is appropriate for public presentation, and an additional working group meeting could be held in conjunction with the open house visit. Phase 5. Approval Process TASK 5A: PUBLIC HEARING PRESENTATIONS, ADDITIONAL REVISIONS, AND FINAL DOCUMENT During the final set of site visits, the Consultant will assist staff in presenting the draft of the code at public hearings of the Plan Commission and City Council. In advance of these meeting, The Consultant will provide the city with a digital version of the draft to be posted online for public review. The city will be responsible for collecting comments, suggestions, and questions from these meeting and consolidating them into a series of clear action items for revision or response. If necessary, it is often helpful to meet with the Plan Commission and Council for a more informal meeting prior to the public adoption process. This can be accomplished through a series of November 2013 City Council Meeting of December 2, 2013 (Item No. 8d) Title: SWLRT Station Area Form-Based Code Grant Contract Page 6 meetings during one visit to avoid a quorum of any body. Finally, the Consultant will then complete one final set of revisions, and deliver the final document. TASK 5B: STAFF TRAINING Upon adoption of the code, the Consultant will develop a presentation and will meet with staff for a training session. The training typically focuses on scenarios, including many brought up during the process of developing the code. Up to six scenarios will be devised to illustrate how existing structures and activities can work within the code, how typical auto-oriented developments would fair by the code, how a variety of development types would meet the code requirements. If any development proposals are currently being considered for the station area, those will be reviewed. Additionally, for up to a year, the Consultant will assist staff in the review of any development proposals. The review will include reviewing the full proposal, a call with staff, and a short written memo in response to the proposal. November 2013 City Council Meeting of December 2, 2013 (Item No. 8d) Title: SWLRT Station Area Form-Based Code Grant Contract Page 7