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HomeMy WebLinkAbout2013/06/10 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JUNE 10, 2013 6:30 p.m. CITY COUNCIL STUDY SESSION – Council Chambers Discussion Items 1. 5 min. Future Study Session Agenda Planning – June 17 & 24, 2013 2. 6:35 p.m. Proposed Redevelopment of the Former Bally Total Fitness Block 3. 7:05 p.m. Southwest LRT Update 4. 8:05 p.m. Human Resources Update 8:20 p.m. Communications/Meeting Check-In (Verbal) 8:25 p.m. Adjourn Written Reports 5. Knollwood Development Proposal 6. Process Update - Environment and Sustainability Commission: Sustainable SLP 7. Update on Sale of 5609 Wood Lane (Vacant City Property) Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting: Study Session Meeting Date: June 10, 2013 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning – June 17 & June 24, 2013 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for the Special Study Session scheduled for June 17, 2013 and the regularly scheduled Study Session on June 24, 2013. POLICY CONSIDERATION: Does the Council agree with the agendas as proposed? SUMMARY: At each study session approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the proposed discussion items for the Special Study Session scheduled for June 17, 2013 and the regularly scheduled Study Session on June 24, 2013. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Future Study Session Agenda Planning – June 17 & 24, 2013 Prepared by: Debbie Fischer, Office Assistant Approved by: Tom Harmening, City Manager Study Session Meeting of June 10, 2013 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning – June 17 & June 24, 2013 Special Study Session, June 17, 2013 – 6:45 p.m. Tentative Discussion Items 1. 2012 Audit and Communications – Administrative Services (45 minutes) Review results of the 2012 Audit with the City’s auditor. Study Session, June 24, 2013 – 6:30 p.m. Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. 2014 Budget Discussion – Administrative Services (60 minutes) A big picture overview of the upcoming process for budgeting and next steps; including discussion about the 2014 process, budget guidelines, and input on any major program changes and ideas the Council would like staff to incorporate in the proposed budget. 3. Deer Management Update – Operations & Recreation (45 minutes) Staff will review the current Deer Management Policy with Council 4. SWLRT Update – Community Development (45 minutes) Current update and continued discussion of the Southwest Light Rail Transit Project. 5. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. End of Meeting: 9:10 p.m. Reports 6. 2013 May Financial Report Meeting: Study Session Meeting Date: June 10, 2013 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Proposed Redevelopment of the Former Bally Total Fitness Block RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: Staff wishes to present and receive feedback on TOLD Development’s proposal for a mixed-use project on the former Bally Total Fitness block west of Excelsior & Grand. Additionally, input is needed as to whether the EDA would be willing to sell its adjoining property as part of the proposed project and whether it would be willing to consider providing financial assistance to facilitate the redevelopment of these properties. SUMMARY: TOLD Development proposes to acquire the former Bally Total Fitness facility located at 4900 Excelsior Blvd, raze the building and parking structure and replace them with a mixed-use (retail and apartment) development. The proposed building would be 4 stories tall consisting of approximately 30,000 square feet of ground floor retail space, 103 market rate apartment units and feature on-street and underground structured parking. As part of the project, TOLD proposes to purchase the vacant EDA property immediately to the east (located at 4760 Excelsior Blvd). In order to make the project financially feasible, TOLD will be requesting tax increment financing assistance. A representative from TOLD will be in attendance at the Study Session to present the proposed project and answer questions. FINANCIAL OR BUDGET CONSIDERATION: TOLD Development would purchase the EDA property at market rate. In order for the developer to fully implement its redevelopment plans it will request tax increment assistance for the building demolition and site preparation costs related to the former Bally’s property. The precise amount of assistance has yet to be determined. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director, and City Manager Study Session Meeting of June 10, 2013 (Item No. 2) Page 2 Title: Proposed Redevelopment of the Former Bally Total Fitness Block DISCUSSION BACKGROUND: The Bally Total Fitness facility (located at 4900 Excelsior Blvd.) closed in 2012 as a result of the acquisition of its parent company by LA Fitness. Since that time, TOLD Development (developer of the adjacent Excelsior & Grand) has secured an option to purchase the 1.2 acre Bally property and has been working with Staff on preliminary concept plans for the redevelopment of the block. It wishes to share those plans at Monday’s Study Session. The EDA owns the vacant, .4 acre property located at 4760 Excelsior Blvd immediately east of the Bally building. It acquired the property in 1996 as part of the overall Park Commons initiative and the subsequent Excelsior & Grand project. A portion of that property was used for the Princeton Lane right of way. It was initially thought the remaining parcel would be part of a larger redevelopment of the Bally block. The EDA pursued acquisition of the Bally building in the late 1990s/early 2000’s but it proved cost prohibitive. Under the EDA’s Redevelopment Contract with TOLD, the developer was granted first right of refusal to acquire this property but TOLD subsequently chose not to do so and allowed its purchase option to lapse. The EDA has retained ownership of the property in hopes that a redevelopment proposal encompassing the entire block would eventually re-emerge. CURRENT PROPOSAL: TOLD Development proposes to raze the former fitness facility and adjoining parking ramp and replace them with a new, mixed use development. The proposed building would be 4 stories tall consisting of approximately 30,000 square feet of ground floor retail space and 103 market rate apartment units. Also included would be a row of street-level parking and two levels of structured underground parking. The proposed project would require acquisition of the EDA’s adjoining property. The proposed project would be viewed as an extension of Excelsior & Grand. Told Development, has been working on the possible redevelopment of the former Bally block for some time and is approaching a project concept/design that could make economic sense for the site. Gary Dreher, Managing Principal with TOLD, plans to bring preliminary concept plans to the Study Session for review and initial comment. PRESENT CONSIDERATIONS: Both the Bally property and the EDA property are guided and zoned Mixed Use. Thus, TOLD’s proposal is consistent with the required land use category. In order for the developer to fully implement its redevelopment plans it is likely that it will request tax increment assistance for demolition of the former building and adjacent parking ramp and construction of the new underground ramp. TOLD is in the process of preparing its project pro forma which will need to be reviewed by Staff and Ehlers. Therefore, the precise amount of assistance needed for the project has yet to be determined. TOLD Development would be required to purchase the EDA property at a market rate through a Purchase and Redevelopment Contract with the EDA. The Bally block lies within the current Park Commons TIF District. The period for making amendments to the TIF Plan budget for this district has expired. Thus, should it be determined that tax increment assistance is necessary to move TOLD’s proposed project forward, the subject properties would need to be removed from the existing TIF district and a new redevelopment TIF district would need to be created. Study Session Meeting of June 10, 2013 (Item No. 2) Page 3 Title: Proposed Redevelopment of the Former Bally Total Fitness Block NEXT STEPS: Staff would like feedback on TOLD Development’s proposal for a mixed-use project on the former Bally Total Fitness block west of Excelsior & Grand. Additionally, input is needed as to whether the EDA would be willing to consider selling its adjoining property as part of the proposed project and whether it would be willing to consider providing financial assistance to facilitate the redevelopment of these properties. In other words – staff desires to know if the Council/EDA has sufficient interest in this project such that it wants staff to continue to work on it with TOLD. If the EDA/City Council were willing to entertain this proposal, next steps would include the following: 1. Further refinement of redevelopment concepts 2. Neighborhood meeting (s) 3. Traffic Study 4. Apply for PUD a. Staff review b. Potentially another neighborhood meeting(s) c. Planning Commission d. City Council 5. Apply for TIF assistance a. Staff review b. Study sessions c. Planning Commission d. EDA/City Council Meeting: Study Session Meeting Date: June 10, 2013 Discussion Item:  EXECUTIVE SUMMARY TITLE: Southwest LRT Update RECOMMENDED ACTION: Staff desires feedback and direction regarding the City’s approach and process for responding in a timely manner to the freight rail relocation and co- location options identified by the SWLRT Project Office (SPO). POLICY CONSIDERATION: None at this time. SUMMARY: The potential freight rail routes for the SWLRT project have been identified and presented to the City Council by the SWLRT Project Office (SPO). The City needs to prepare and submit to the SPO the City’s comments regarding the freight rail options. The comments should be submitted before the SPO makes its recommendations for which route to include in the Municipal Consent Plans for the SWLRT project. That means our comments should be submitted in early July. To meet that schedule, draft comments for City Council review should be prepared by June 24th and officially approved July 1st or July 8th. Given that the reroute options have a significant impact on the School District, it is also recommended that the City Council and School Board have a joint meeting to discuss this issue. The date for such a joint meeting could be July 1 or July 8 at the absolute latest. To begin the process of preparing freight rail comments staff is proposing the following for Monday night’s study session, 1.) The re-location options will be reviewed in detail with the City Council 2.) A preliminary list of pros & cons for the re-route options will be presented; 3.) Initial comments/issues/concerns and lists of information needed from the SPO will be provided; and, 4.) The proposed schedule and approach to preparing the City’s comments will be discussed (including a joint meeting with the School Board) Attached under “Discussion” is a suggested approach to preparing the City’s freight rail response as well as the SWLRT project principles for guiding the Met Council’s decisions on the design of the SWLRT project (as prepared by the Met Council). FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion: Approach for Preparing Freight Rail Response Southwest LRT Principles for Major Scoping Decisions Prepared by: Kevin Locke, CD Director and Meg McMonigal, Plng Supervisor Approved by: Tom Harmening, City Manager Study Session Meeting of June 10, 2013 (Item No. 3) Page 2 Title: Southwest LRT Update DISCUSSION BACKGROUND: At the May 28th City Council Study session the SPO staff presented the two freight rail re-location and the six freight rail co-location options under consideration. By mid to late July 2013 the SPO staff intends to recommend a single freight rail route to be incorporated into the SWLRT plans. In the latter part of July they are scheduled to present the recommendation to the SWLRT committees including the Business Advisory and Citizen Advisory Committees (BAC & CAC), and in early August the Corridor Management Committee (CMC). Ultimately the SPO recommendation will be presented to the Metropolitan Council in August 2013. They will make the decision on what freight rail option should be incorporated into the SWLRT plan. Since the SPO presentation to the City Council, the SPO has presented the freight rail options to the Minneapolis City Council Transportation & Public Works Committee June 4th, the SLP School District May 28 , the Twinwest Chamber/SLP Business Council June 6th, the BAC & CAC at a joint meeting June 6th, held meetings with “affected properties” (basically properties potentially partially or fully acquired) among other meetings. More meetings are being scheduled on the freight rail and station area topics. PRESENT CONSIDERATIONS: Approach for Preparing Freight Rail Response The suggested approach for preparing the City’s freight rail response is 1. Review the proposed options in the context of the City’s existing freight rail policy; 2. Review the proposed plans in detail to identify key issues/concerns that need to be addressed from the St. Louis Park perspective; 3. Identify information and/or analysis that we believe the SPO must undertake to accurately evaluate the alternatives; 4. Review the City’s previously prepared comments on the SWLRT DEIS and include them in the comments to the SPO as appropriate; and, 5. Prepare a list of the mitigation elements that would be needed for a freight rail option to be acceptable. NEXT STEPS: 1. Prepare draft City comments on freight rail – June 24th 2. Meet jointly with the SLP School Board on freight rail issue – July 1st or July 8th 3. Approve comments to the SPO on freight rail – July 1st or July 8th       www.swlrt.org    6465 Wayzata Boulevard, Suite 500 • St. Louis Park, MN  55426 • Main: 612‐373‐3800 • Fax: 612‐373‐3899  Southwest LRT Principles for Major Scoping Decisions  April 4, 2013    The Preliminary Engineering (PE) phase of the Southwest LRT project (SWLRT) will require decisions affecting  the size, design, features and cost of the project. Because these decisions have the potential for impacting  and/or benefiting the communities along the corridor, the Metropolitan Council (Council) established a set of  principles that provide a clear and transparent process for making project scope refinements. These guiding  principles will be used to evaluate alternatives and make informed decisions on project scope refinements and  address concerns raised in the DEIS public comment process.     After seeking feedback from project partners and advisory committees, including the Business and Community  Advisory Committees and the Corridor Management Committee, the Council adopted the following guiding  principles on March 27, 2013. The principles are not listed in order of priority or weight.      Comply with current federal and state laws, rules and guidelines;   Follow Regional Transitway Guidelines, regional policies and regional plans  adopted by the  Metropolitan Council and follow best business practices of the Council;   Follow SWLRT Design Criteria, including criteria for safety and security;   Positively impact (increase) the Federal Transit Administration (FTA)  rating criteria;   Positively impact (increase) ridership;   Positively impact (increase) land use,  economic development and access to affordable housing by  coordinating with local station area plans;   Positively impact (increase) equity so that community benefits and burdens are equally shared.  The  opportunities and challenges of growth and change are equitably shared across our communities, both  geographic and cultural;   Positively impact (increase) environmental benefits;      Positively impact (increase) use of the intermodal transportation network including bus, light rail, trails  and sidewalks;      Positively impact (decrease) or not impact the project schedule;    Positively impact (decrease) capital cost;    Positively impact (decrease) operating cost; and   Actively engage and encourage input from interested persons and impacted communities via public  involvement and established advisory committees process.        Study Session Meeting of June 10, 2013 (Item No. 3) Title: Southwest LRT Update Page 3 Meeting: Study Session Meeting Date: June 10, 2013 Discussion Item: 4 EXECUTIVE SUMMARY TITLE: Human Resources Update RECOMMENDED ACTION: No formal action at this time. The City Manager desires to update Council on staffing needs and related budget impacts. POLICY CONSIDERATION: Based on information that will be provided at the Study Session, does the City Council have any questions or concerns regarding the staffing plan being advanced by the City Manager? SUMMARY: At a Special Study Session on May 6 the City Manager and HR Director provided an update on various organizational changes and recruitment matters. This study session item is a continuation of that discussion and will include a plan being considered by the City Manager to add one more project engineer and engineering technician to our current staff to allow for the delivery of the City’s aggressive capital improvements plan. FINANCIAL OR BUDGET CONSIDERATION: Information will be provided at the Study Session. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: None Approved by: Tom Harmening, City Manager Meeting: Study Session Meeting Date: June 10, 2013 Written Report:  EXECUTIVE SUMMARY TITLE: Knollwood Development Proposal RECOMMENDED ACTION: No action at this time. The purpose of this discussion is to provide an update on the Knollwood Mall development proposal. POLICY CONSIDERATION: None at this time. SUMMARY: Rouse Companies, the owners of the Knollwood Shopping Center are proposing to make significant changes to both the Knollwood building and its parking lot. The plan requires a major amendment to the Planned Unit Development (PUD). They will make application on June 17, 2013, and want to begin construction in August 2013. Knollwood building: Rouse is proposing to remove the interior mall located between Kohls and TJ Max. The interior mall will be replaced with approximately five “Junior Box” retailers about the size of stores like Old Navy. Small “out” building: A small three tenant building is proposed to be built in the parking lot at the corner of Hwy 7 and Aquila Ave. This building will contain Panera Bread and two other retailers. The Panera will include a drive-thru and an outdoor seating area. Parking lot: The shopping center parking lot, located between Kohls, Hwy 7 and TJ Max will be replaced and redesigned to improve traffic and pedestrian flow. The redesign will include significant landscaping integrated into the pedestrian routes through the parking lot. Stormwater: Rouse is working with the City and the Minnehaha Creek Watershed District (MCWD) to bring the entire site into compliance with stormwater rate and quality rules. The MCWD presented a plan to expand Knollwood Mall’s stormwater improvement into a regional pond that will treat 40 – 80 acres in addition to the 40-acre Knollwood Mall site. The plan and agreements for the regional pond will not be completed by the time Rouse applies for the PUD amendment. Therefore, as a back-up, Rouse presented a plan to treat the Knollwood Mall stormwater on-site if Rouse and the MCWD cannot agree on terms. FINANCIAL OR BUDGET CONSIDERATION: The stormwater installation will be funded by Rouse and the MCWD. Stormwater lift station maintenance may fall to the City. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Discussion Development Proposal MCWD Letter Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Sean Walther, Senior Planner Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager Study Session Meeting of June 10, 2013 (Item No. 5) Page 2 Title: Knollwood Development Proposal DISCUSSION The following is a summary of the May 13, 2013 report to the Council on the status of the Knollwood Mall Stormwater treatment. Rouse Companies, the owners of the Knollwood Shopping Center, are proposing to make significant changes to both the Knollwood building and its parking lot. These changes will trigger the need to address the stormwater management issues that exist today on the site. Today, Knollwood Center is not in compliance with current stormwater management rules. Bringing Knollwood into compliance with the stormwater rules was a condition of approval of the previous amendment to the Knollwood Planned Unit Development (PUD) permit in 2004. The Resolution of approval, Resolution 04-54, stated: “On-site storm water management must be brought into compliance with City standards when any future projects affect the parking lot or with any future building expansions.” Discussions with the Minnehaha Creek Watershed District (MCWD) have identified a means of expanding on the Knollwood Mall stormwater improvement to incorporate a larger area outside of the Knollwood Mall property that is not currently being treated, and drains directly into the Minnehaha Creek. MCWD has offered to fund and initiate a study that would attempt to create a sub-area stormwater management plan. Rouse Properties and the City support this planning effort. The intent is to prepare a stormwater management concept plan for the Knollwood Mall area, estimate the cost of the project and evaluate the plan’s viability. The cost of the project would be split between Rouse Properties and MCWD. At the conclusion of the sub-area stormwater planning effort, the City could be asked to partner in a regional stormwater treatment facility. Most of the potential plans include mechanical lift stations. The City may be the most experienced with the operations and maintenance of such facilities, and could be asked to serve that role. Staff recommends that the City not commit to this role at this time and only consider that possibility under the regional stormwater options. The City would not participate in a private system for the Knollwood Mall alone. The plan and results of the MCWD’s analysis completed to date will be discussed at the study session. The plan being pursued is to establish a regional pond near the creek, not on the Knollwood property. This plan, however, will take some time to complete. An alternative plan to accommodate the stormwater on the Knollwood Mall site was prepared as a fall-back position, should the off-site pond be found not feasible. A summary of the back-up plan, prepared by James Wisker, Director of Planning Projects and Land Conservation for the MCWD is attached. It shows underground infiltration tanks to be located in the northwest corner of the property. Study Session Meeting of June 10, 2013 (Item No. 5) Title: Knollwood Development ProposalPage 3 Kohls Old Navy Study Session Meeting of June 10, 2013 (Item No. 5) Title: Knollwood Development ProposalPage 4 Study Session Meeting of June 10, 2013 (Item No. 5) Title: Knollwood Development ProposalPage 5 Study Session Meeting of June 10, 2013 (Item No. 5) Title: Knollwood Development ProposalPage 6 Study Session Meeting of June 10, 2013 (Item No. 5) Title: Knollwood Development ProposalPage 7 Study Session Meeting of June 10, 2013 (Item No. 3) Page 8 Title: Knollwood Development Proposal Study Session Meeting of June 10, 2013 (Item No. 5) Title: Knollwood Development ProposalPage 9 Meeting: Study Session Meeting Date: June 10, 2013 Written Report: 6 EXECUTIVE SUMMARY TITLE: Process Update - Environment and Sustainability Commission: Sustainable SLP RECOMMENDED ACTION: No formal action is required. Please let staff know of any questions you might have POLICY CONSIDERATION: No policy related issues at this time. SUMMARY: On April 1, 2013, Council approved Ordinance No. 2438-13, establishing the Environment and Sustainability Commission: Sustainable SLP. Recruitment of commission members began on April 2, with the application deadline set at April 26. On June 3 the City Council appointed the following people as members of the new Environment and Sustainability Commission: Sustainable SLP: Regular Members: Chris Anderson, Mark Eilers, Rachel Harris, Tom Hillstrom, Mary Karius, Cindy Larson O’Neil, Renee McGarvey, Judy Voigt Business Members: Tim Brausen, Terry Gips Residential Tenant Member: Whitney Thesing Youth Members: Caitlin Glennon, Alex Sundvall Staff has set a timeline to begin to formulate the Commission and develop by-laws, determine terms, and recommend a work plan. A copy of this timeline is attached. FINANCIAL OR BUDGET CONSIDERATION: Staff has hired a consultant, Barr Engineering Company, to assist with environmental expertise as we work with the Commission to establish goals and areas to focus on for the first year. As discussed during the 2013 budget process, funding to support the Environment and Sustainability Commission: Sustainable SLP will be from the solid waste fund. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Timeline Prepared by: Kay Midura, Assistant – City Clerk’s Office Reviewed by: Bridget Gothberg, Organizational Development Coordinator Cindy Walsh, Operations and Recreation Director Approved by: Tom Harmening, City Manager Environment & Sustainability Commission: Sustainable SLP Timeline June 3 June 4 - 5 June 6 June 10 - 15 1st Meeting June or July 2nd Meeting July or August 3rd Meeting August/ September 4th Meeting September/ October October/ November Council approves Environment & Sustainability Commission: Sustainable SLP • Send notices to those selected & look at potential 1st meeting dates (with deadline to respond) • Thank you notices to those not selected Hire consultant & set meeting with consultant to start planning • Select 1st meeting • Plan agenda • Reserve space • Samples of other Commission by-laws • Build relationships • Share the background of the Commission • Look at By- Laws • Set monthly meeting date and time • Finalize By- Laws --Approve --Set officers • Begin the process of setting: --Vision --Goals --Work Plan • Continue the process of setting: --Vision --Goals --Work Plan • Finalize the process of setting: --Vision --Goals --Work Plan • Plan for Council meeting Present to Council Study Session Meeting of June 10, 2013 (Item No. 6) Title: Process Update - Environment and Sustainability Commission: Sustainable SLP Page 2 Meeting: Study Session Meeting Date: June 10, 2013 Written Report: 7 EXECUTIVE SUMMARY TITLE: Update on Sale of 5609 Wood Lane (Vacant City Property) RECOMMENDED ACTION: Council Action is not required. The purpose of this report is to notify council of receipt of a bid to purchase 5609 Wood Lane. POLICY CONSIDERATION: None at this time. SUMMARY: Gavin May, a St. Louis Park resident, submitted a bid Monday, June 3, 2013 to purchase the “excess” land parcel at 5609 Wood Lane for the appraised value of $195,000. In 2006 Mr. May and his wife purchased their current home which is just blocks away from 5609 Wood Lane. They have enjoyed living in the neighborhood and are excited to raise a family here. The Mays feel they will soon outgrow their current home following the birth of their first child this coming September. The Mays have been very proactive in looking for a place in St. Louis Park to build a larger family sized home. Mr. May understands the development requirements related to purchasing the lot including the extension and improvements to Wood Lane. The City Council approved the sale of this parcel on December 5, 2005, just as the housing/lending market was at its peak. Bids for purchase were accepted in 2006. The first bidder withdrew his bid siting economic reasons. The second bidder declined to purchase and the third bidder, Al Stobbe, entered into a Development Agreement with the Housing Authority. Mr. Stobbe was to have purchased the parcel and construct the home by the end of 2008. With the downturn in the housing market, he was unable to sell his current home. An extension to the contract with Mr. Stobbe was not granted due to his inability to get financing without selling his current home. There have been inquiries regarding excess land parcels but Mr. May is the first serious buyer for Wood Lane since 2008. In addition to Mr. May, a few builders have expressed interest in the property; however, per resolution 05-172 residents are given preference as long as their offer meets the minimum fair market appraised value which Mr. May’s bid meets The May family is excited to build their “Move-Up” Family home at 5609 Wood Lane and stay in the St. Louis Park community. This is the last approved excess land parcel for sale for building a single family home. FINANCIAL OR BUDGET CONSIDERATION: None VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion Parcel Data Prepared by: Marney Olson, Housing Programs Coordinator Reviewed by: Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager Study Session Meeting of June 10, 2013 (Item No. 7) Page 2 Title: Update on Sale of 5609 Wood Lane (Vacant City Property) DISCUSSION BACKGROUND: The decision to consider selling some parcels of “excess” land was prompted by the city’s interest in identifying City owned or publicly owned vacant land that could be used to build “move-up” housing, reducing maintenance costs of unused land, and responding to requests from residents to purchase some of the parcels. The Housing Summit and Vision St. Louis Park participants pointed to residents’ desire for larger family homes that they can move to when they’ve outgrown starter homes. When the City Council approved the “excess” land sale program they delegated authority to the Housing Authority to administer the program. Design guidelines were established to ensure that new homes blend with the surrounding area and address specific design desires of the City and neighboring residents. The Design Guidelines address: 1. Interior Building Design: The home must be a single-family, owner-occupied home with a minimum of three bedrooms; two full bathrooms preferred; value added amenities such as great rooms, dens or porches; and energy efficient products and construction techniques are encouraged. 2. Exterior Building Design: The exterior of the home should be compatible with the scale of the surrounding neighborhood, include a balanced distribution of wall and window areas from all views, and exterior materials should be low maintenance. 3. Garage Design: The garage should not be the predominant feature of the home, but it must be a two-car garage or larger and can be either attached or detached. 4. Site and Grounds: The entire ground shall be landscaped to be aesthetically pleasing in all seasons. Existing trees shall be preserved when possible. All air condition units must be located in rear or side yard. Before determining that these lots were “excess” public land, recommendations from a 1995- 1996 Parks and Open Space Study were reviewed along with confirming with Public Works, Parks and Recreation and Community Development Departments that the parcels held no benefit for either park or utility functions. A resident task force evaluated the use of excess public lands for single family homes, and the City conducted nine citywide public meetings and seven separate neighborhood meetings seeking resident input regarding the parcels. Some Wood Lane neighbors expressed opposition to the City selling this parcel for building a single family home. The City Council authorized the sale of 5609 Wood Lane at the December 5, 2005 Council meeting. Resolution 05-170 allowed the Minnehaha Creek Watershed District (MCWD) their requested six months to pursue other options for this parcel with the caveat that if the MCWD did not purchase the parcel it would be sold for a single family home. The MCWD declined to purchase the parcel and agreed that building on the parcel was acceptable if the city ensured flood plain requirements were met and if the city would attach a conservation easement to the title. The city agreed to MCWD’s requests and began working towards selling the property for a single family move-up home. Following the termination of the development contract with Mr. Stobbe in 2008, residents of Wood Lane were mailed notices updating them of the expiration of the contract. The letter reiterated that the City’s original decision to develop this parcel with a single family home was unchanged. Study Session Meeting of June 10, 2013 (Item No. 7) Page 3 Title: Update on Sale of 5609 Wood Lane (Vacant City Property) NEXT STEPS: Staff will prepare a report for the July 10, 2013 Housing Authority (HA) meeting requesting the HA Board authorize execution of a Purchase Agreement with Gavin May for the purchase and development of the parcel located at 5609 Wood Lane in accordance with the design guidelines. The Board may also authorize execution of a Development Agreement at this time or at a future date. If approved by the Board the following outlines the tentative timeline for development: • Mid July - Mr. May will sign a Purchase Agreement and put down earnest money. • Mr. May has 12 weeks from the date of signing the purchase agreement to submit house and site plans, proof of financial ability to build the home, builder information and estimated completion date. • End of November – close on the property. • Ideally Mr. May would like to break ground between December 2013 and February 2014. Study Session Meeting of June 10, 2013 (Item No. 7) Page 4 Title: Update on Sale of 5609 Wood Lane (Vacant City Property) WOOD LNYOSEMITE AVE SSubject 5609 Wood Lane – Parcel Data Appraised Value “As Is” May 2013 $195,000 Neighborhood Brookside Legal Description Lot 10 Rearrangement of Block 4 Property Identification Number 21 117 21 34 0122 Lot Size Area outside flood plain, available for building Approx 24,010 sq ft Approx 12,606 sq ft Alley Access No Zoning R1 – Single Family Residential Comprehensive Plan Designation Low Density Residential Utilities Available Water and sanitary sewer available in Wood Lane and needs to be extended to property. Street Access None – Extension and improvements to Wood Lane will be required. Soil Conditions Soils appear to be stable. Data Available Topographical Survey, Wetland Delineation Report, and Soil Analysis Conservation Easement Area within the 100 year flood elevation line along the creek will be protected and use restricted by a conservation easement. Setback Requirements Front Yard: You can build as close to the front property line as the closest house on the block, or 30 feet, whichever is greater. Side Yard – 6 ft. one side, 9 ft. on the other Rear Yard – 25 ft. Attached garage – 6 ft. Detached garage – 2 ft. side and rear setback measured to edge of eave/overhangs. The block on which the property is located and the adjacent blocks are all developed with single family homes. The current city water, sewer and waste disposal service available may not be suitable for all homes being proposed. *An analysis of the attached soil report indicates: one foot of topsoil; ground water was observed at 10 feet; fill and backfill will be required. The water table limits basement depth to 2 feet; slab on grade construction is likely. The city does not guarantee the estimated soil corrections cost. The parcel is being sold as is and the buyer will be responsible for all development costs including utility connections and required road improvements.