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Home My WebLink About2013/11/25 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA NOVEMBER 25, 2013 6:30 p.m. TOUR OF REMODELED 1ST FLOOR – City Hall Immediately Following Tour STUDY SESSION – Community Room Discussion Items 1. 5 min. Future Study Session Agenda Planning – December 9, 2013 2. 60 min. Southwest Light Rail Train (SWRLT) Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation 3. 30 min. PLACE Redevelopment Concept for McGarvey Site 4. 30 min. Update on SWLRT Station Area Form-Based Code Grant Contract 5 min. Communications/Updates (Verbal) Written Reports 5. October 2013 Monthly Financial Report Immediately Following Study Session SPECIAL CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 2. Resolutions, Ordinances, Motions and Discussion Items 2a. Excel Pawn Currency Exchange License Renewal Recommended Action: Motion to consider 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. 3. Adjournment 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 3pm 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: Study Session Meeting Date: November 25, 2013 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning – December 9, 2013 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for the regularly scheduled Study Session on December 9, 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 regularly scheduled Study Session on December 9, 2013. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Future Study Session Agenda Planning – December 9, 2013 Prepared by: Debbie Fischer, Office Assistant Approved by: Tom Harmening, City Manager Study Session Meeting of November 25, 2013 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning – December 9, 2013 Study Session, December 9, 2013 – 6:30pm Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. Results from LISC Community Development Initiative (CDI) for Wooddale LRT Station Area – Community Development (45 minutes) A Community Development Initiative (CDI) process on the city/county 2-acre site at Wooddale LRT station was held in October and November by the LISC group (Local Initiative Support Group) through a HUD grant given to the Metro Council. The process included four meetings and its purpose was to look closely at the site for development options and opportunities, and determine if they were financially feasible. A panel of developers commented on the ideas and gave their sense of the sites from a market standpoint. Gretchen Nicholls from LISC will be present to discuss the process and outcomes. 3. Health in the Park Update – Administrative Services (15 minutes) Staff will be in attendance to provide a progress report on the Health in the Park initiative. 4. Update on Solid Waste Program – Operations & Recreation (45 minutes) Staff will be in attendance to provide a progress report on the changes to the solid waste, recycling and organics programs that became effective in October. 5. Traffic Studies – Methodologies – Engineering / Community Development (30 minutes) City staff and Marie Cote, SRF, will be presenting an overview of the methodologies used to complete traffic studies to determine solutions for neighborhood traffic concerns as well as development and redevelopment projects. This topic was requested by the Council to be on a study session. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. Reports 6. Highway 100 Update 7. Reilly Tar Strategy Meeting: City Council Meeting Date: November 25, 2013 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Southwest Light Rail Train (SWRLT) Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation RECOMMENDED ACTION: None at this time. Staff desires feedback from the Council regarding the findings of the study. POLICY CONSIDERATION: None at this time. However, the information provided in this report should be very helpful for the Council’s upcoming retreat if “housing” is chosen by the Council to be a topic of discussion. SUMMARY: In 2012, the SWLRT Community Works Steering Committee approved a SWLRT Corridor Community Works Plan. The purpose is to partner with SWLRT Corridor Community Works and regional partners to recommend joint policies, tools and financing strategies that will help to achieve a full range of housing choices along the corridor in conjunction with future transit investments. The first step in this process was to conduct a housing inventory along the corridor. Maxfield Research was hired to complete the inventory which included collecting information on demographics, employment/commuter, school data, housing characteristics, housing inventory, city policies, housing programs, and financing tools. The inventory provides a baseline housing inventory and demographic/economic profile of the corridor. Future housing strategy tasks that will build upon the housing inventory include a gap analysis, market feasibility and accessibility analysis, and development of strategy/goals. The boundaries for the SWLRT study include a half-mile along the corridor and a two-mile radius around the station areas which left only a small portion of the City outside the study area. The City contracted independently with Maxfield for inclusion of the entire geographic area of the City in its inventory. The City inventory is a more detailed comprehensive housing analysis that includes specific future housing demand estimates and recommendations related to the meeting the future housing needs in St. Louis Park. At the meeting on November 25, Cathy Bennett of the Urban Land Institute-Minnesota, Kerri Pearce Ruch, Hennepin County and Matt Mullins of Maxfield Research will present an overview of the Housing Inventory and the SLP Comprehensive Housing Needs Analysis and detail the next steps in the corridor-wide housing strategy. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: SWLRT Housing Inventory Executive Summary SLP Housing Inventory Executive Summary Prepared by: Michele Schnitker, Housing Supervisor Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of November 25, 2013 (Item No. 2) Page 2 Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation DISCUSSION BACKGROUND: SWLRT Housing Inventory: The purpose of the Housing Inventory is to set a baseline along the corridor; understand the existing housing condition by collecting housing data and documenting what is already available along the corridor and surrounding the station areas. Key data criteria collected for the inventory includes: • Household Demographics - who is living in the corridor, where are they coming from and where do they move to? What type of housing are people living in currently? What is household income? • Existing Available Housing – determine number and type of housing along the corridor. The housing inventory analyzed a variety of metrics such as affordability, inventory of rental housing units and condominium units, homestead vs. non-homestead properties, naturally occurring affordable housing, and identified housing projects in the development pipeline (i.e. under construction, planned, pending, etc.). • Commute and Labor Shed – determine where people work and where workers come from; evaluate industries; summarize incomes and wages. • Housing and Transportation Cost Index – review and apply current Housing Plus Transportation Cost Index. • School Data – review school data regarding families and changes in school populations, including changes in race/ethnicity and free/reduced lunch numbers. • City Housing Tools and Strategies – collect and review existing city housing strategies (policies and tools) and current affordable housing goals. Comprehensive Housing Needs Analysis for St. Louis Park: The Comprehensive Housing Needs Analysis for St. Louis Park builds on the information collected for the SWLRT inventory. In addition to providing a baseline housing inventory and demographic/economic profile of the City, t he study projects housing demand from 2013 through 2025, and provides recommendations on the amount and type of housing that could be built in St. Louis Park to satisfy demand from current and future residents. The complete SWLRT Housing Inventory can be accessed on the Southwest Transitway website at: http://www.southwesttransitway.org/ The complete Comprehensive Housing Needs Analysis for St. Louis Park can be accessed on the City’s website at: http://www.stlouispark.org/housing-authority.html NEXT STEPS: The SWLRT Housing Committee made up of representatives from the County, the Southwest Project Office, Urban Land Institute, LISC and representatives of communities located along the corridor designed the next steps needed to develop a Corridor Housing Strategy as following: • Gap Analysis – review market feasibility and determine housing gaps (what is missing) in housing types and values. Determine areas that need enhanced connectivity between housing, transportation and jobs. • Market Feasibility and Accessibility – conduct a market assessment incorporating relative market feasibility of different housing types and values. Determine barriers to preserving and building a full range of housing choices along the corridor. City Council Meeting of November 25, 2013 (Item No. 2) Page 3 Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation • Develop Coordinated Strategy to Meet Future Housing Needs – develop a strategy that provides coordination in preserving and constructing a full range of housing choices along the corridor. • Collaboration and Support – seek input from cities and collaborate on community engagement efforts. The development of a Housing Strategy will be made in consultation with community stakeholders and grounded in market reality and financial feasibility. The SLP Comprehensive Housing Needs Analysis builds upon the work conducted in the SWLRT Housing Inventory. It provides City policy makers and staff with an additional resource related to the City’s existing housing stock needs and recommendations regarding strategies and goals to meet the community’s future housing needs. As stated earlier, the results of the study should be very helpful if the Council desires to have a discussion on the City’s housing policies at its upcoming annual retreat. The timeline for completing the future phases will run through mid-2014. Staff will keep Council apprised of any new developments related to the process. EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Southwest LRT Community Works Southwest Corridor-wide Housing Inventory __________________________________________________________ March 28, 2013 Presented to: Hennepin County Southwest LRT Community Works Project Presented by: Maxfield Research, Inc. (team lead) MFRA Ehlers and Associates Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 4 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Purpose of Study Maxfield Research Inc., was engaged by Hennepin County (on behalf of the Southwest LRT Community Works) to provide a housing inventory for the areas surrounding the 17 proposed transit stations along the Southwest Light Rail Transit Corridor (SWLRT). The corridor extends from Downtown Minneapolis through St. Louis Park, Hopkins, Minnetonka, and Eden Prairie. Housing inventory research was completed corridor‐wide and at the half‐mile, one‐mile, and two‐mile radii from each station. The outcome of the analysis is intended to provide Hennepin County and the Southwest LRT Community Works Project with a baseline housing inventory and demographic/economic profile that will enhance local and regional housing goals and policies as identified in the Corridors of Opportunity (CoO). The Southwest Corridor‐wide Housing Inventory will establish the starting point for the broader Southwest Corridor Housing Strategy, while simultaneously providing input to the Southwest Transitional Station Area Action Plans (TSAAP). Future housing strategy tasks include market feasibility and accessibility, gap analysis, and strategy/goals that will be completed at later dates. Future phases will build upon the housing inventory and provide detailed recommendations related to housing strategy and goals. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 5 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Demographics Extensive demographic research was completed to obtain a full scope of factors that affect each station’s demographic and economic compositions. Demographic analysis was compiled corridor‐wide and at the half‐mile, one‐mile, and two‐mile radii of each station area. Demographic highlights include: • The overall transit corridor (half‐mile) experienced growth in population and households of +15% and +16% respectively between 2000 and 2010. Growth is projected to continue through 2017 but at a much lesser rate of +3% for both population and households. This growth rate will likely increase as transit oriented development will likely increase closer to the arrival of the SWLRT. • In 2010, the Blake Road Station had the highest population with nearly 5,400 persons (half‐ mile). However the West Lake Station posted the highest number of households (2,685). • The half‐mile corridor population is younger as the largest age cohort for nearly all station areas is ages 25 to 34 years old. Over 50% of the corridor’s population was 35 and under. • The average corridor‐wide household size was only 1.83 persons per household at the half‐ mile corridor. Only four stations (Penn, 21st, Louisiana, and Blake) average over 2.0 people per household, indicating that there were a high percentage of households living alone and two‐person households. • The majority of households (54%) within a half‐mile SWLRT Corridor rented their housing in 2010. The percentage of renters is projected to increase for nearly all of the stations through 2017. This trend started after the housing bust and Great Recession out of necessity for some householders, but has also become a lifestyle choice. • Minorities accounted for about 27% of the half‐mile corridor population in 2010. This compares to about 26% of the Hennepin County population and 21% of the Metro Area population. The largest concentration of the non‐white population was within Royalston and Van White station areas in Minneapolis. • In 2012, the median half‐mile corridor household income was $50,580. Median incomes ranged from $31,475 (Hopkins Station) to $131,200 (21st Street Station). By 2017, the median household incomes are projected to increase at all stations by an average of about 16% (3.2% annually). Seven of the stations are projected to have income growth from 20% to 30%. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 6 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Employment Employment growth can fuel household and population growth as people generally desire to live near where they work. Employment data and mobility trends were compiled both corridor‐ wide and for each individual station area. Key employment findings include: • SWLRT Corridor communities are home to numerous employment centers as there are approximately 107,200 jobs at the half‐mile corridor as of 2010. This accounted for 13% of all Hennepin County jobs and 7% of the Metro Area jobs. • The Royalston Station had the greatest number of jobs (10,208) within the half‐mile corridor due to its proximity to Downtown Minneapolis. The Louisiana Station (8,469 jobs) and the City West Station (7,629 jobs) were the next two station areas with high concentrations of jobs. The 21st Street and Penn Stations had the fewest number of jobs within half‐mile with 167 and 457 jobs, respectively. • A higher percentage of workers within half‐mile of the SWLRT line compared to the Metro Area had a bachelor’s degree or advanced degree (31% compared to 28%). Higher educational attainment also correlated to higher earnings. Approximately 52% of workers earned more than $3,333 per month within half‐mile of the SWLRT line compared to 47% in the Metro Area. The Opus Station had the highest earners with 78% of jobs earning more than $3,333 per month. • Most station area residents commute outside of the community they live in. For example, 44% of residents living within half‐mile of stations in Minneapolis also worked in Minneapolis; while only 7.1% of residents living within half‐mile of stations in Hopkins also worked in Hopkins. Corridor‐wide, approximately 31% of all residents within half‐mile of the SWLRT work in Minneapolis followed by 7.6% in St. Louis Park. Education Key data points were obtained for all public, private, charter, and post‐secondary schools located within the SWLRT Corridor. The following bullet points summarize education findings: • There are six public school districts that fall along the SWLRT line: Eden Prairie, Edina, Hopkins, Minneapolis, Minnetonka (not in 2‐mile radius of SWLRT line), and St. Louis Park. There were 38 public schools located at the two‐mile corridor of the SWLRT line with a total of 30,014 students as of the 2011‐2012 school year. • The Minneapolis Public School District had the largest enrollment with 31,750 students while the St. Louis Park Public School District had the smallest enrollment with 4,350 students. The Minneapolis Public School District also had the highest percentage of minority students (65%) and free/reduced lunches (64%), but the lowest graduation rate Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 7 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. (47%). Conversely, the Minnetonka Public School District had the lowest percentage of minority students (11%) but the highest graduation rate (95%). The percentage of open enrolled students varies between 9% (Edina) and 15% (Minneapolis). • In addition to the 38 public schools that fall within two‐miles of the SWLRT, there are 28 private schools, 22 charter schools, and four post‐secondary schools. • Students and families who attend to schools within half‐mile of the SWLRT will have the greatest opportunity to utilize the SWLRT for their transportation needs. There are four public schools, seven charter schools, and ten private schools located within half‐mile of the SWLRT. Housing Characteristics The SWLRT Corridor housing stock was analyzed by corridor, community and station area level; including data on the age of the housing stock, housing structure types, mortgage status, building and demolition permit trends, and relocation trends. Housing characteristics highlights are as follows: • Emulating the housing market over the past decade, building permit activity in SWLRT Corridor communities was strong between 2000 and 2006 before significantly falling in after the housing bubble burst. About 80% of all new housing units built last decade were constructed between 2000 and 2006. • Minneapolis accounted for 70% of the new housing units over the past decade among corridor communities. However, most of these units were condominiums constructed between 2005 and 2007. • Since 2005 there has also been the demolition of 270 single‐family units within the 2‐mile SWLRT Corridor. Two‐thirds of the teardowns have been in the Edina portion of the corridor. • With the exception of the Royalston Station, the age of the housing stock is newer the further southwest from Downtown Minneapolis. About 36% of homes within half‐mile of stations in Minneapolis were built before 1940. In comparison, 8.9% of homes within half‐ mile of stations were built before 1940 in St. Louis Park, 11.3% in Hopkins, 1.8% in Minnetonka, and 0.2% in Eden Prairie. • Housing type also varies considerably between station areas as the Penn and 21st Street Stations in Minneapolis are dominated by single‐family detached homes within the half‐mile radius (over 80% of stock); whereas there are no single‐family homes near the Town Center and Southwest Stations in Eden Prairie. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 8 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. • Corridor‐wide, about 25% of all housing units within the half‐mile corridor are single‐family units. Over 50% of all housing units in the SWLRT Corridor are located in multifamily structures with over 20 units. • Most households residing in the SWLRT Corridor tend to stay in the same community or adjacent community when they move. According to the relocation data, about two‐thirds of existing householders stay within a SWLRT community when they move. For-Sale Real Estate Market The for‐sale housing market includes an evaluation of home sales by all SWLRT Corridor cities and within the station areas, an overview of homes for‐sale within the station areas, and a review of lender‐mediated properties. For‐sale highlights include: • Real estate activity among communities and station areas along the SWLRT Corridor mirrored the Metro Area and national real estate market with strong real estate appreciation between 2000 and 2006 (+59%) before experiencing falling home prices once the housing market bubble burst. However, declining home prices (‐17%) between 2005 and 2012 along the SWLRT were not as severe as most communities in the Metro Area. • Lender‐mediated property sales (i.e. foreclosures and short sales) were lower among SWLRT communities compared to the Metro Area (38% among SWLRT communities vs. 50% Metro Area). • Housing resale prices vary significantly across the SWLRT Corridor. Through 3rd Quarter 2012, median resale prices within the half‐mile corridor were highest at 21st and Penn Stations ($380,000+) and lowest at the Opus, Southwest, and Mitchell Road Stations (under $100,000). • As of the 4th Quarter 2012, the median list price for a home within the half‐mile SWLRT Corridor was $348,800 compared to approximately $200,000 in the Metro Area. The high corridor median list price was inflated based on the price points of homes near the 21st and Penn Stations in Minneapolis. Housing Inventory The housing inventory analyzed a variety of metrics such as affordability, inventory of rental housing units and condominium units, homestead vs. non‐homesteaded properties, naturally occurring affordable housing, and identified housing projects in the development pipeline (i.e. under construction, planned, pending, etc.). Maxfield Research Inc. identified and surveyed rental properties of 12 or more units along the corridor for both general occupancy and senior (age restricted) housing. Properties were Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 9 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. City Units inventoried within a two‐mile radius for the suburban stations and a one‐mile radius for the Minneapolis stations. The following bullet points highlight key findings: • Corridor‐wide, 401 projects were inventoried that encompassed over 29,300 units. Market rate projects (those with no income restrictions) accounted for 80% of the total units. Affordable/subsidized projects represented about 12% of the units, and age‐restricted senior projects accounted for 8%. 25,000 Corridor-wide Rental Units by Housing Type 23,527 20,000 15,000 10,000 5,000 0 1,525 726 1,036 149 1,770 603 G.O. MR <30 % <50 % <60 % <80 % SR. MR SR. Aff. Housing Type • About 44% of the total rental units (12,764 units) inventoried are located in the City of Minneapolis. However, over 4,500 of these units are located closer to existing LRT lines. St. Louis Park had the highest rental inventory among the suburban SWLRT communities (5,853 units). Rental Units by City Within SWLRT Corridor St. Louis Park 5,853 Minnetonka 1,512 Mpls. 12,764 Hopkins 4,247 Golden Valley 207 Edina 409 Eden Prairie 4,344 0 5,000 10,000 15,000 Units Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 10 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Units Station • Only 12% of the units (almost 3,000 units) are located within one‐quarter mile of station areas. Furthermore, only five of the seventeen stations have rental units within a quarter mile of the station. Just over one‐half (51%) of the units are located within one‐half to one‐ mile of station areas. 12,000 10,000 8,000 Corridor-wide Rental Units by Distance to SWLRT Station 11,214 Market Rate Affordable/Subsidized 6,000 4,000 2,000 0 2,588 4,578 409 587 1,205 3,304 627 0.0 - 0.24 0.25-0.49 0.50 - 0.99 1.0 - 2.0 Distance to Station Royalston Van White Penn 21st St. West Lake Beltline Wooddale Louisiana Blake Hopkins Shady Oak Opus City West Golden Triangle E.P. Twn. Ctr. Southwest Mitchell Rental Units by Proximity to Station 0.0 ‐ 0.24 0.25‐0.49 0.50 ‐ 0.99 1.0 ‐ 2.0 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Units • Housing units that do not have income guidelines yet are more affordable than other units in a community are considered “naturally occurring or “unsubsidized affordable” units. Typically these units have lower values based on a combination of factors such as age of structure/housing stock, location, condition, size, functionally obsolete, school district, etc. A review of market rate rental projects found that 53% of the total units were constructed at least 30 years ago; indicating the rents were more affordable than newer product. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 11 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Finally, about two‐thirds of market rate projects with available rents were considered affordable to households at 50% to 60% of AMI (households earning between $29,300 and $50,340 for a one‐ or two‐bedroom unit). • Corridor‐wide in 2012, non‐homesteaded properties accounted for 21.5% of all non‐ apartment residential units. Minneapolis accounted for 69% of the over 11,000 non‐ homesteaded properties and about one‐half of the non‐homesteaded units in Minneapolis were condominiums. Corridor‐wide, 11% of single family homes were non‐homesteaded. • As of late 2012, there were 9,700 housing units either under construction, planned, or pending along the SWLRT Corridor. However, the number of units declined to 4,200 after excluding projects closer to other LRT stations. About 70% of the planned product is general‐occupancy market rate rental housing; most of which is higher‐end renting at over $1.75 per square foot). Although 80% of the units in the development pipeline are located in Minneapolis, there are several projects under construction or planned in the suburban communities. Housing Programs There are a variety of tools and strategies the communities along the SWLRT Corridor provide that are designed to improve and enhance housing choices and services. Many cities strive to provide programs supporting a wide variety of housing choices across all incomes, housing types, sizes, and price points. Examples of housing programs include first‐time homebuyer programs, fix‐up funds, rental ordinances, foreclosure prevention, etc. As part of the housing inventory, housing programs were summarized for all SWLRT communities and for Hennepin County. Key housing program findings are as follows: • The number and type of programs vary significantly from city to city along the SWLRT Corridor. While the Cities of St. Louis Park and Minneapolis offer numerous housing programs (17+); Golden Valley and Edina offer very few. • There are no housing programs that are offered in all seven communities. However, there are four programs that are offered by five of the seven communities; as identified below: o Housing Fair o Deferred Loan Program o First‐Time Home Buyer Program o Land Trust • In addition to the housing programs currently offered by communities, there are a number of programs referred to or administered by third parties. Examples include the Community Action Partnership for Suburban Hennepin County, Minnesota Homeownership Center, Center for Energy and the Environment, Centerpoint Energy, Xcel Energy, among others. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 12 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. • Additional housing programs implemented by other cities were also identified. Examples included inclusionary zoning, density bonuses, rent‐to‐own programs, among others. • Finally, the study provided examples of collaboration programs that could be implemented while addressing common goals and housing issues along the SWLRT Corridor. City Policies Accompanying the data review was the review of plans and policies adopted by the seven jurisdictions (Minneapolis, Golden Valley, St. Louis Park, Hopkins, Edina, Minnetonka and Eden Prairie) that are anticipated to be influenced by the SWLRT line. The following bullet points summarize key city policy findings: • Corridor cities have adopted polices and land uses which incorporate the future SWLRT, even though it was uncertain if the corridor would be constructed. • Polices and land use plans identified and incorporated language that supports higher densities along the corridor, utilizing mixed use developments, promote alternative housing other than single‐family, and provide opportunities for affordable housing for their elderly and transient workforce. • Some cities have potential competing interests in their development policies. For example, new development could encroach upon areas the city may be striving to preserve. • Most of the plans and policies were prepared in the early to mid‐2000’s as cities were updating their comprehensive plans. As a result, most of the data is sourced to the 2000 census and is outdated. However, the policies established within the updated comprehensive plans do not reflect a specific timeframe but establishes future guidance for each city. Financing Tools The financing tools analysis summarized the current tools, resources, and funding sources which could be used to create affordable housing along the SWLRT Corridor. The following three bullet points are recommended to help mitigate impediments to development along the SWLRT line: • Address the expensive and cumbersome land acquisition process • Form a consensus over what TOD in Minnesota should be • Modify the statutory requirements for establishing TIF districts. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 13 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Comprehensive Housing Needs Analysis for St. Louis Park, Minnesota __________________________________________________________ June, 2013 Prepared for: City of St. Louis Park St. Louis Park, Minnesota Maxfield Research, Inc. 1221 Nicollet Mall Suite 218 Minneapolis, MN 55403 612.338.0012 Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 14 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Overview of Study The primary objective of the Comprehensive Housing Needs Analysis for St. Louis Park is to provide the City of St. Louis Park and St. Louis Park Housing and Redevelopment Authority with a market- based analysis that will identify current and future housing needs in the City. The assessment will help decision-makers, both public and private, develop a greater understanding of the community’s housing market. The housing needs assessment provides recommendations guiding future housing for existing and future residents and the tools/policies to implement the plan. The housing needs assessment lays out the demographic, economic, and housing market performance in St. Louis Park for expanding housing opportunities. The analysis is the first step in addressing local housing issues and is intended to lay the groundwork for establishing housing goals, priorities, and strategies for meeting the demand. Furthermore, the analysis will assist local builders/developers and financial institutions through streamlining their respective due diligence process. Key Findings 1. Population and household growth is projected to be higher this decade than the last. New growth will result from infill and redevelopment opportunities in mostly higher-density housing types. Single-family infill will continue to be in high demand, but will be contingent on site availability. 2. The largest age cohort in St. Louis Park is adults between 25 and 34 years old, accounting for 23% of the city’s population. Together with young adults ages 18 to 24, one-third of the population is between 18 and 34. This demographic consists primarily of renters and first- time home buyers. 3. The aging baby boomer generation is substantially impacting the composition of St. Louis Park’s population. This demographic is projected to have the highest growth and will be aging into their young senior years later this decade. This shift will result in demand for alternative housing products. 4. Household sizes are shrinking and the largest household type is persons living alone while married couple households (with and without kids) continues to decrease. This shift is expected to continue due to shifting demographics (i.e. delayed marriages, fewer children, aging of the population, etc.) 5. Approximately 88% of St. Louis Park’s single-family housing stock was constructed prior to 1960. As a result the homes are located on smaller lots and have smaller square footages compared to buyers needs today. Continued promotion of the City’s housing programs should be a priority to encourage reinvestment into the housing stock. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 15 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. 6. Over the past year, St. Louis Park has experienced significant new luxury apartment development. Four new projects consisting of over 430 units were constructed in 2013, with additional units either under construction or planned. New market rate rental move- up product has opened up more affordable units to moderate-income households. As multifamily housing has led the real estate recovery, St. Louis Park has been a highly sought community by developers and investors. Continued demand in this sector is projected along the future Southwest LRT line and other desirable locations. 7. Due to the age of St. Louis Park’s rental housing stock, the majority of the units have monthly rents that are affordable to households earning 50% to 60% of Hennepin County AMI. Among the 6,000 market rate units inventoried, nearly 45% of the units area affordable to householders at 50% AMI. Together with 26% of the units affordable at 60% AMI, 71% of the market rate rental housing inventory is affordable at 50% to 60% AMI. 8. Although the St. Louis Park for-sale market experienced pricing declines after the real estate boom deflated, St. Louis Park pricing fared much better than most communities in the Metro Area. The median sales price has increased annually since 2011 and the local real estate market activity swelled in the summer of 2013. The percentage of lender-mediated proper- ties peaked in 2011 (40%) but continues to wane as the housing market recovers. 9. Strong housing demand is projected through 2025. Over this time, demand is projected for over 2,600 general-occupancy units and 750 senior housing units. However, not all demand may be realized as new housing will result from replacement need, infill, and redevelopment. Purpose and Scope of Study Maxfield Research Inc. was engaged by the City of St. Louis Park to conduct a Comprehensive Housing Needs Analysis for the City of St. Louis Park. The Housing Needs Analysis provides recommendations on the amount and types of housing that should be developed in order to meet the needs of current and future households who choose to reside in the City. The scope of this study includes: an analysis of the demographic characteristics of the City; a review of the characteristics of the existing housing stock and building permit trends; an analysis of the market condition for a variety of rental and for-sale housing products; and an assessment of the need for housing by product type in the City. Recommendations on the number and types of housing products that should be considered in the City are also supplied. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 16 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Demographic Analysis • As of the 2010 Census, the City of St. Louis Park had 45,520 people and 21,743 households. The City of St. Louis Park is forecast to add an additional 3,900 people and 2,007 households between 2010 and 2020. • The population in St. Louis Park is aging and older age cohorts are accounting for an increasingly significant percentage of the total population. Baby boomers (comprising the age groups 45 to 54 and 55 to 64 in 2010), accounted for an estimated 24.0% of the City’s population. Over the next five years, the age 65 to 74 cohort will have the highest growth by percentage and numerically (691 people, or 24.9%). The growth in this age cohort can be primarily attributed to the baby boom generation aging into their young senior years. In addition, the 85+ age cohort also experienced a significant growth between 2000 and 2010, increasing by 22.7%, or 260 people, and is projected to increase another 9.1%, or 137 people, over the next five years. • People identifying as Non-Hispanic White comprised the largest proportion of the popula- tion of the City at 83.3% in 2010. This category is by far the largest, but has decreased slightly from 88.9% in 2000 to 83.3% in 2010. • Although Hispanics/Latinos comprised only 4.3% of the population in 2010, there was a 50% increase between 2000 and 2010. The Black/African American population also saw a significant increase between 2000 and 2010, increasing from 4.4% of the City’s population (1,930 people) to 7.5% of the City’s population (3,372), an increase of 74.7%, or 1,442 people. • St. Louis Park had an estimated median household income of $52,378 in 2013. It is projected to increase over the next 5 years to $60,781 in 2018 (+16%). • Median incomes for households in St. Louis Park peak at $66,714 for the 45 to 54 age group in 2013. Households in this age group are in their peak earning years. The greatest percentage of households (73.8%) in this age group is homeowners. By 2018, the median in- come for the 45 to 54 age group is projected to increase to $79,278, 18.8% increase. • Senior households with incomes greater than $30,000 can afford market rate senior housing. Based on a 40% allocation of income for housing, this translates to monthly rents of at least $1,000. About 2,473 senior households in St. Louis Park had incomes above $30,000 in 2013. • Between 2000 and 2010, homeownership rates decreased from 63.6% to 60.7% in the City of St. Louis Park. • Between 2000 and 2010, St. Louis Park experienced an increase in all types of households except families that are married with children (-5.9%) and those married without a child (-5%). Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 17 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. • Persons Living Alone grew significantly over the past decade, adding 837 households (10.6%). This could indicate an aging senior population. As the frailty level of these seniors increases, they typically move out of their homes in pursuit of housing with services. • A household in the City of St. Louis Park has an average net worth of $395,744 in 2013, about 41% lower than the average net worth of a householder in Hennepin County. St. Louis Park has a median net worth of $56,325 in 2013, about 50% lower than the average net worth in Hennepin County. Housing Characteristics • The City of St. Louis Park issued permits for the construction of 1,575 new residential units from 2000 through 2012. That equates to about 121 units annually since 2000. Through 2007, the City of St. Louis Park issued about 72% of the overall permitted units for the period. Over this period, residential construction averaged about 140 units per year. However, beginning in 2007, building permits declined rapidly, and from 2007 through 2011 the City has averaged only 9 units per year. • Over 91% of the units (1,436) since 2000 have been multifamily homes with the remaining (139) being single-family homes. • Over the past 13 years, the average number of demolitions has averaged five housing units annually. The most common purpose of the demolition permits is to tear down an older home and rebuild a newer infill home. • St. Louis Park’s single-family homes are older compared to Hennepin County and the Metro Area. Approximately 88% of St. Louis Park’s single-family homes were built in 1960 or before compared to 53.0% and 38.0% in Hennepin County and the Metro Area, respectively. • Approximately 41% of all renter-occupied units are located in structures with 50 or more units. • Approximately 79% of St. Louis Park homeowners have a mortgage. About 30% of home- owners with mortgages in St. Louis Park also have a second mortgage and/or home equity loan. Comparatively, about 76% of homeowners in Hennepin County had a mortgage in 2011. • The median owner-occupied home in St. Louis Park was $240,400 or $3,700 less than Hennepin County’s median home value ($244,100) but $1,673 higher than the Metro Area ($238,727). • The median contract rent in St. Louis Park was $862. Based on a 30% allocation of income to housing, a household in St. Louis Park would need an income of about $34,480 to afford an average monthly rent of $862. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 18 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Rental Housing Market Analysis • Surveyed rental housing in the City of Saint Louis Park included 91 market rate apartment properties (8 units and larger) and eight affordable/subsidized communities in May 2013. These projects represent a combined total of 7,450 units, including 7,019 market rate units, 258 subsidized units, and 173 affordable units. Overall, 99 properties were contacted with 84 properties participating in the rental survey (85% participation rate). However, these 84 properties account for 7,176 of the total 7,450 units (96.3%). At the time of our survey, 133 market rate units, one affordable unit, and zero subsidized units were vacant, resulting in an overall vacancy rates of 2.0% for market rate units, 0.6% for affordable, and 0% for subsidized units. The overall market rate vacancy rate of 2.0% is lower than the industry standard of 5% vacancy for a stabilized rental market. • Among the over 6,000 market rate units that were inventoried by unit mix and monthly rents, nearly 45% of the units are affordable to householders at 50% AMI. Together with 26% of the units affordable at 60% AMI, 71% of the market rate rental housing inventory is affordable at 50% to 60% AMI. • Average monthly rents in the City of St. Louis Park were $763 for studio units, $937 for one- bedroom units, $1,374 for one-bedroom plus den units, $1,174 for two-bedroom units, $1,944 for two-bedroom plus den units, and $1,592 for three-bedroom units. Overall, the average monthly rent was $1,069, which was a $10 increase from the previous year. • The overall vacancy rate in St. Louis Park was 3.0%. Vacancy rates below 5% indicate that pent-up demand exists for additional rental units in the market. The overall Metro Area vacancy rate is also very low at 2.8%. • Apartment properties built between 1990 and 2010 account for 16% of the overall market rate projects. But, this group attributes to almost 27% of the existing market rate rental units. • There are a total of eight income-restricted projects in St. Louis Park with 431 total units. Combined, only one unit is vacant posting a vacancy rate of only 0.2%. Typically, subsidized and affordable rental properties should be able to maintain vacancy rates of 3% or less in most housing markets. The low vacancy rates in the market indicate pent-up demand for affordable and subsidized units and also are an indication of the current economic climate in the area. • Managers at surveyed properties stated they had a wide mix of tenants. Some properties indicated that their tenant mix ranged from college students to seniors and was very diverse. However, most property managers believed that the average tenant was a young professional. • Developers and real estate agents agreed that smaller unit sizes like studio apartments have become less attractive to prospective residents over the past years. Although studio apartments are less expensive, the price per square footage is typically much higher than other units. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 19 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Senior Housing Market Analysis • As of May 2013, Maxfield Research identified 12 senior housing developments in St. Louis Park. Combined, these projects contain a total of 934 units. Two of the projects are subsidized, while the remaining ten are market rate. • There are a total of 196 units in two subsidized senior projects. As of May 2013, 16 units were vacant resulting in a vacancy rate of 7.6%. • The newest market rate senior rental project in the City of St. Louis Park is Tower Light on Wooddale Avenue. This project has 29 units designated for assisted living and currently has 13 vacancies. The unit mix is comprised of studio, one-bedroom, and two-bedroom units. The units range from $3,140 to $4,240 a month. • Aquila Commons is the only active adult cooperative in the City of St. Louis Park. Coopera- tive products involve purchasing a unit (or share) and then paying monthly fees which includes all utilities, of property and commons areas, and future building maintenance. The 106-unit project currently has two vacancies. • Parkshore Place and Knollwood Place are congregate-optional services senior rental developments located in St. Louis Park. Parkshore Place is at full capacity, but Knollwood Place has six vacancies, resulting in a vacancy rate of 2.3%. • There is only one congregate services included property in the City of St. Louis Park. Tower Light on Wooddale Avenue opened in late 2012 and includes 43 units. As of May 2013, this sector of Tower Light had 21 vacancies resulting in a vacancy rate of 48.8%. High vacancy rate is due to being in the initial lease-up phase. • St. Louis Park has a total of three assisted living facilities with 149 units. Combined the three projects have 23 openings, resulting in a vacancy rate of 15.4%. However, excluding Tower Light, the vacancy rate is 8.3%. • A total of three memory care facilities with 80 units are located in St. Louis Park. Memory care housing is one of the newest trends in senior housing, which caters to seniors with Alzheimer’s and other dementia. All of the memory care facilities have been built after 2000. Combined the three properties have 25 vacancies, resulting in a vacancy rate of 31%. However, excluding Tower Light, the vacancy rate is 2.1%. For-Sale Housing Market Analysis • Like across the Twin Cities Metro Area and the nation, pricing in St. Louis Park peaked between 2005 and 2007 at the height of the real estate boom. The median sales price peaked in 2006 at about $234,500 while the average sales price peaked at roughly $254,000 in 2007. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 20 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. • Between 2000 and 2006/2007, St. Louis Park and the surrounding communities experienced rapid home sale appreciation during the real estate boom. However, after the housing market plateaued in late 2005 through early 2007, St. Louis Park and area communities started to experience sliding housing values as the housing market bubble burst. • After adjusting for the downturn in the housing market, St. Louis Park housing values showed appreciation of about 37% between 2000 and 2012; over twice as high as the Metro Area (+18.8%). • Compared to the neighboring communities and Metro Area average, St. Louis Park homes realized the highest ratio of the sold price compared to the original list price. Resales in 2012 sold at over 94% of the listing’s original list price. • The number of resales was highest between 2003 and 2006, averaging nearly 950 resales annually. Resale activity was lowest in 2010 with just over 500 resales. • The median resale price of homes in St. Louis Park was approximately $198,500 in 2012. The income required to afford a home at this price would be about $56,715 to $66,165, based on the standard of 3.0 to 3.5 times the median income (and assuming these house- holds do not have a high level of debt). In 2012, 63% (9,331 households) of St. Louis Park’s non-senior households had incomes greater than $56,715. • Over 40% of the multifamily inventory is listed under $100,000. This product is dominated by older condominiums built in the 1960s, 1970s, and 1980s. Condominium product built this past decade is generally listed above $250,000. • One-story homes made up the highest percentage (38.4%) of active single-family listings. One and one-half story homes also account for a significant proportion at 34% of single- family listings. These two property types have among the lowest list price per square foot among the entire single-family inventory ($137 PSF and $145 PSF respectively). • The percentage of lender-mediated sales in St. Louis Park increased from 14% in 2008 to 40% in 2011, before decreasing to 27% in 2012. St. Louis Park has fared better than the Metro Area over the past five years. • There are 40 condominium projects with a total of over 2,700 units in the City of St. Louis Park. Overall, condominium units are older as about 55% of the units were constructed in the 1970s and 1980s. • A review of recently sold and actively marketing new single-family homes found that home prices ranging from $350,000 to $777,500 with an average sales price of about $510,000. The average price per square foot (PSF) of $185. The average size of 2,700 square feet with four bedrooms and 3.5 baths. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 21 EXECUTIVE SUMMARY MAXFIELD RESEARCH INC. Housing Needs Analysis • Based on our calculations, demand exists for the following general occupancy product types between 2013 and 2025: o Market rate rental 683 units o Affordable rental 374 units o Subsidized rental 225 units o For-sale single-family 264 units o For-sale multifamily 1,085 units • In addition, we find demand for multiple senior housing product types. By 2018, demand for senior housing is forecast for the following: o Active adult ownership 54 units o Active adult market rate rental 232 units o Active adult affordable 173 units o Active adult subsidized 134 units o Congregate 17 units o Assisted living 117 units o Memory care 41 units Recommendations and Conclusions • Based on the finding of our analysis and demand calculations, the following chart provides a summary of the recommended development concepts by product type for the City of St. Louis Park through 2025. Detailed findings are described in the Conclusions and Recommendations section of the report. Study Session Meeting of November 25, 2013 (Item No. 2) Title: SWRLT Housing Inventory Study & St. Louis Park Housing Needs Analysis Presentation Page 22 Meeting: Study Session Meeting Date: November 25, 2013 Discussion Item: 3 EXECUTIVE SUMMARY TITLE: PLACE Redevelopment Concept for McGarvey Site RECOMMENDED ACTION: No action at this time. The purpose of this item is for the Council to discuss the PLACE Development proposal and provide feedback and direction to Staff. POLICY CONSIDERATION: Does the Council desire staff to further pursue the PLACE project with the developer? SUMMARY: PLACE, a non-profit developer, has contacted the City to propose building a mixed-income, mixed-use, creative community that includes an anaerobic digester on site. The mission of PLACE is “to build a sustainable, just, and inspiring world, one community at a time.” PLACE is working with the owner of the McGarvey property for a project in St. Louis Park that would include an anaerobic digester to convert organic waste to energy. PLACE has developed several projects, including net-zero energy communities (produces enough, or more energy than consumes), with their most recent being the WAV Community in Ventura, CA. This is the first development they have pursued that would include a digester. The proposed PLACE Community concept includes approximately 200 housing units, which would include a mix of market-rate and affordable units, cooperative space, live-work units, and a mix of retail, commercial and/or office. PLACE is proposing to have the digester operating in May, 2014 and to break ground on the mixed-use development in 2015. If the Council is interested in this project, PLACE would continue working with Staff through the City Process, including neighborhood engagement, while pursuing all other necessary permits and approvals. FINANCIAL OR BUDGET CONSIDERATION: None at this time. There is the potential to consider TIF financing or other public/private funding strategies if the project moves forward. VISION CONSIDERATION: 1. 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. 2. St. Louis Park is committed to providing a well-maintained and diverse housing stock. 3. St. Louis Park is committed to promoting and integrating arts, culture and community aesthetics in all City initiatives, including implementation where appropriate. SUPPORTING DOCUMENTS: PLACE Development Summary Sheet E-Generation Primer Anaerobic Digester Examples Prepared by: Ryan Kelley, Associate Planner Reviewed by: Meg McMonigal, Planning and Zoning Supervisor Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager Study Session Meeting of November 25, 2013 (Item No. 3) Page 2 Title: PLACE Redevelopment Concept for McGarvey Site DISCUSSION PLACE is proposing a sustainable, transit-oriented development at the site of the former McGarvey Coffee Plant. The full development would offer live/work suites, retail space, a variety of housing types including owner-occupied and rental across a range of price points, and is anticipated to be built to LEED Platinum standards. A component of achieving a LEED rating is the incorporation of an anaerobic digester to produce energy on-site. ANAEROBIC DIGESTION: Anaerobic digestion is a process in which organic matter is decomposed in an oxygen-free environment generating compost, methane and carbon dioxide. These gasses are captured to produce heat, steam or marketable energy. There are a variety of systems employed throughout the world that use anaerobic digestion to produce energy and/or fertilizer. The most common use of digesters is on farms and at landfills. Both of these settings have large amounts of waste that is used to generate power for on-site consumption, or that is sold back into the larger power-grid. In these scenarios, there is usually very little concern over any odor, noise, or traffic issues that can be associated with a digester. PLACE has filed a patent for an anaerobic digester that can operate at a scale appropriate for a residential community and urban environment, and that they believe addresses the concerns with odor and the outputs from the digestion process. The digester, as proposed by PLACE, is a completely enclosed container, approximately the size of a shipping container. PROJECT BACKGROUND PLACE is proposing to install the entire digestion process inside the McGarvey building, including a small addition that would allow trucks to drive in one side the building, unload the organics, and drive out the other side of the building, removing the need for any trucks backing up and the associated noises. PLACE estimates that there would be a maximum of six trucks per day delivering organics to the site. There may be an estimated two trucks per week that take away any additional compost produced from the digestion process. The building design also includes a negative-pressure building, the enclosed digestion processing units, charcoal air scrubbers, and an exhaust system that captures any gas by-product and diverts it to a greenhouse to use for on-site food production, all as odor-controlling measures and waste-harnessing methods. PLACE has responded to an RFP issued by Hennepin County to be the County’s organics collection site. Their submittal is contingent on the ability to locate the digester in St. Louis Park. The timeline for the digester component of the project is extremely tight due to Hennepin County’s timeline. The County wants a site to be able to accept its organics beginning May 15, 2014. If the selected applicant cannot accept organics at that time, they must have a plan in place for collecting the material until the applicant’s site is operational. There are two phases to the PLACE proposal, due to site acquisition opportunities and the Hennepin County contract. Phase One is to get the digester operational in the existing McGarvey building. This phase includes minor renovation of the existing McGarvey building, the addition of a truck bay, a green house on a portion of the roof, landscaping and other minor site changes and would take place in Quarter 1 of 2014. Phase Two includes the full mixed-use development which would include a reconfiguration of the McGarvey site, possible demolition of all or part of Study Session Meeting of November 25, 2013 (Item No. 3) Page 3 Title: PLACE Redevelopment Concept for McGarvey Site the existing McGarvey building, and the construction of a new building. PLACE is also interested in the potential opportunity of incorporating the EDA parcel to the west into their development for this phase. PLACE anticipates breaking ground on Phase Two in 2015. LAND USE: The McGarvey site is currently guided as Business Park in the Comprehensive Plan and is zoned I-G General Industrial. The property was originally proposed for rezoning to BP-Business Park, however as development proposals have come forward, the City Council direction has to been to hold off on changing the zoning at this time. A Comprehensive Plan Amendment would be required for either phase of the development. The mixed-use component of the PLACE Community proposal can be handled currently through the City’s Mixed-use Zoning District and the PUD process. The digester is the more challenging use to determine. Staff has determined that the most appropriate land use definition for the digester in the existing Code would be Manufacturing/processing. Manufacturing/processing is permitted in the I-G General Industrial Zoning District. Staff finds that the digester may be permitted in the I-G District, and will need to conduct further research on how to appropriately designate the land use and zoning for the site if the project moves forward with the digester and mixed-used development. About PLACE PLACE is a nonproﬁt developer specializing in sustainable communities for the arts and economic development. PLACE collaborates with communities to develop places that improve the lives of residents and the surrounding neighborhood, protect and restore the natural environment, and lower government burden. We are passionate about taking on the interconnected challenges of affordable living, education, economic development, access to arts and culture, food, health, energy, and more. The History Chris Velasco, President and Executive Director of PLACE, cofounded the organization with Elizabeth Bowling in 2005 to bring together the arts, environmental stewardship, and social justice. Prior to starting PLACE, Chris was Vice President of Artspace, where he helped grow the organization into the world’s leading developer for the arts. After working for thirteen years building arts communities for public beneﬁt, Chris wanted to expand those efforts consistent with his commitment to sustainability and community empowerment. PLACE became the vehicle to develop mixed-use, mixed-income projects that are both restorative to the environment and strengthening to the community. Through a community-driven, ethically rigorous process, the PLACE Team strives to develop new models for urban neighborhoods that demonstrate radical innovation in environmental, economic, and cultural design. Experience To date, the PLACE organization has created over $1 billion in completed projects, ranging from adaptive reuse of historical buildings to cutting-edge new construction. More importantly, our communities and their residents have created a ripple effect of long-term public beneﬁt that far exceeds the dollar value of the buildings. ! 100 Portland Avenue South info@welcometoplace.com Suite 100 welcometoplace.com Minneapolis, MN 55401 T (612) 309-3889 The mission of PLACE is to create places that foster a sustainable, just, and inspiring world. Working Artists Ventura (WAV), Ventura, California Study Session Meeting of November 25, 2013 (Item No. 3) Title: PLACE Redevelopment Concept for McGarvey Site Page 4 Project Description PLACE seeks to develop a roughly 2-acre site in St. Louis Park, Minnesota into a sustainable, transit- oriented community. The site is located adjacent to a major pedestrian and bike trail. It is also next to the pending Southwest Light Rail Line. The ﬁrst phase of this project, a renewable energy facility known as E-Generation, will be completed by May of 2014. The second phase, the sustainable village, will be powered by E-Generation and will break ground in 2015, making it the world’s ﬁrst sustainable community powered by garbage. The village will offer live/work suites for creatives (artists, scientists, technologists and inventors), and retail space for creative businesses, including coffee houses, galleries, cafes, wine bars and design ﬁrms that will draw foot traffic and contribute to the vitality of the neighborhood. A variety of housing types—both ownership and rental—will be available for households across the income spectrum. The entire village will be built to the highest standards of environmental design (LEED Platinum), and will achieve net zero energy. With the community involved in every aspect of development, our St. Louis Park village will create jobs, set a new standard for sustainability, support small businesses, and provide healthy affordable homes for people. E-Generation™ E-Generation is PLACE’s patent-pending process for creating renewable energy for our communities. It combines a portfolio of renewable energy technologies — such as wind, solar and geothermal — with a micro, anaerobic digestion technology. With anaerobic digestion, we can convert organic waste into bio gas, which can then be used to generate electricity, a virtuous cycle: community life generates garbage, which generates energy, which goes on to generate more community life, and so on. The process is silent, odorless, non- intrusive, and is designed to operate in a dense urban environment. At the end of this process, the garbage has become a Class A liquid fertilizer, which we can use to grow food for the community through onsite gardens and greenhouses, and also sell to organic local farms for use on their crops. The ﬁrst community powered by garbage Study Session Meeting of November 25, 2013 (Item No. 3) Title: PLACE Redevelopment Concept for McGarvey Site Page 5 ANAEROBIC DIGESTION PLACE’s E-Generation process successfully converts organics into renewable energy through a process of breakdown by thermophilic (52-55º C) microbes in an anaerobic environment. The modular system is designed as shipping containers shipped to the site ready to operate. The facility will be capable of processing 15,000 tons of organics per year. Organics are dropped off at the facility into a closed container. From there, the organics cycle through the automatic system in 21 days, yielding a total breakdown of the original volume by over 95%. The resulting biogas will generate renewable energy twenty-four hours a day, three hundred sixty-ﬁve days a year. DIGESTER UNITS Each digester unit is manufactured to exacting German standards in San Jose, California. The size has been engineered as a half-size shipping container and is stackable. 100 KW ICE CHP GENERATOR PLACE will use a technique known as co- generation to achieve very high rates of performance and efﬁciency. Waste heat made during electricity generation will be fed back into the system to heat and cool the building. SCALABLE, MODULAR SYSTEM PLACE’s E-Generation process is modular and scalable. The installation will not be permanent, and the facility can be relocated. Study Session Meeting of November 25, 2013 (Item No. 3) Title: PLACE Redevelopment Concept for McGarvey Site Page 6 VITAL STATISTICSVITAL STATISTICS E-GENERATION™POWERED BY NATURE Project Sponsors PLACE, a 501(C)3 public beneﬁt organization, Siemens a global company founded in 1847 Project Architects MS&R Architects General Contractor Mortenson Construction Location 5725 Highway 7 Service Road Property Size 75,000 square feet Building Size 1 story, 16,000 square feet (Phase 1) Space Needs 15,000 sf for E-Generation Total Construction Cost Approximately $3 million Proximity to Mass Transit Within 1 blocks of new Southwest Corridor light rail line Proposed Phase II Live/work apartments, affordable and luxury; makers’ space, commercial/retail space Proposed Schedule Preparing for a May, 2014 opening (Phase 1) Phase II Ground Breaking in 2015 PLACE has partnered with Siemens, a global leader in the engineering and manufacture of intelligent systems and controls to create this project. Siemens and place will ﬁnance and the develop the project. MS&R Architects and Mortenson Construction will serve as the building team. The Project Team has the experience and ﬁnancial strength to succeed. Study Session Meeting of November 25, 2013 (Item No. 3) Title: PLACE Redevelopment Concept for McGarvey Site Page 7 Case Study SEaB digester installation at the University of Southampton Science Park, May 2012 The University of Southampton Science Park (USSP) is set in 45 acres of landscaped grounds, representing an impressive base for research and business. The science park takes advantage of the energy harvesting potential of food and organic waste, which, to date, has been an untapped resource. Electricity and heat generated from the biogas production is used within the business park offices and research and development laboratories on site. The science park supports a wide range of organizations in 400,000 square feet of mixed single and multi tenant buildings. Over 900 individuals work for 75 organizations. Also on site is the Chilworth Manor luxury hotel and conference centre, based in a large Edwardian house. It is the perfect venue for entertaining important visitors and is an excellent venue for conferences and training events, offering the highest standards of service and residential accommodation for visitors. The hotel contains 80 bedrooms, 11 conference rooms and runs 2 kitchens. The hotel is recovering food waste from general waste. The digester unit is lowered into place by crane The digester unit in position Study Session Meeting of November 25, 2013 (Item No. 3) Title: PLACE Redevelopment Concept for McGarvey Site Page 8 Case Study: Valorga Anaerobic Digesters Anaerobic bacterial processes operate in an enclosed, oxygen- free environment. In addition to producing compost, such processes generate methane and carbon dioxide in an enclosed container, thereby providing an opportunity to capture these gasses and use them productively, either for process heat, for steam, or for marketable excess electricity. "Processes such as anaerobic digestion and composting offer the only biological route for recycling matter and nutrients from the organic fraction of MSW," contends Herman Miller, president of Environmental Developers Inc. of Stockton, CA. "However, composting is an energy- consuming process requiring 50 to 75 kilowatt-hours of electricity per ton of MSW input. Conversely, anaerobic digestion is a net energy-producing process, with around 75 to 150 kilowatt-hours of electricity created per ton of MSW input." Anaerobic digestion in this country appears to have been limited largely to applications involving animal waste or organic industrial waste. There has been little or no use of anaerobic digestion to compost MSW. In Europe, however, the use of anaerobic digesters to process organic MSW is becoming relatively common. Not surprisingly, therefore, some European suppliers of anaerobic digestion systems have been eyeing the US market. All in all, the Valorga system appears to have eliminated the odor problem completely. Indeed, the facility in Freiberg, Germany, towers over an immediately adjacent Burger King restaurant and provides a powerful visual symbol for this system in particular and for the in-vessel composting industry as a whole. In-vessel systems cannot compete on cost grounds with traditional open-turned windrow MSW composting. However, dust, health, sludge disposal, vermin, and odor concerns affect the formula signiﬁcantly at urban or suburban sites. In many cases, these factors can make in- vessel systems preferable; occasionally they might well make in-vessel systems mandatory. Anaerobic digester located next to a Burger King Freiberg, Germany Study Session Meeting of November 25, 2013 (Item No. 3) Title: PLACE Redevelopment Concept for McGarvey Site Page 9 Meeting: Study Session Meeting Date: November 25, 2013 Discussion Item: 4 EXECUTIVE SUMMARY TITLE: Update on SWLRT Station Area Form-Based Code Grant Contract RECOMMENDED ACTION: No Action at this time. The purpose of this item is to provide information for discussion of the Livable Communities Demonstration Account-Transit Oriented Development (LCDA-TOD) Grant the City received from the Metropolitan Council to develop a form-based code for the three St. Louis Park Southwest Light Rail Transit (SWLRT) station areas. A Resolution to approve the consultant contract will be on the December 2, 2013 agenda for Council consideration. POLICY CONSIDERATION: Does the City Council wish to continue 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 City received a Livable Communities Demonstration Account-Transit Oriented Development (LCDA-TOD) Pre-Development grant from the Metropolitan Council in July, 2013 to develop a form-based code (FBC). The Council approved the grant application on May 20, 2013. The City has considered form-based codes as a potential zoning tool in the station areas to foster and encourage Transit-Oriented Development (TOD). Staff released a Request for Proposals (RFP) in September, 2013 for a consultant to lead the FBC process and develop the code. Staff is recommending CodaMetrics, based in Chicago, IL to develop a form-based code and to guide the City through this process. The project is expected to begin in January, 2014 and is expected to end in May, 2015. The process must be completed by July of 2015. FINANCIAL OR BUDGET CONSIDERATION: $25,000 City Match. ($125,000 total grant with $100,000 from the Metropolitan Council + $25,000 City Match.) VISION CONSIDERATION: 1. St. Louis Park is committed to being a connected and engaged community. 2. St. Louis Park is committed to promoting an integrating arts, culture and community aesthetics in all City initiatives, including implementation where appropriate. SUPPORTING DOCUMENTS: Discussion 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 Study Session Meeting of November 25, 2013 (Item No. 4) Page 2 Title: Update on SWLRT Station Area Form-Based Code Grant Contract DISCUSSION BACKGROUND: Form-based codes (FBCs) are regulations that focus on the form, or design of the public realm. Rather than being proscriptive, and focusing almost entirely on a separation of uses as conventional codes do, FBCs are prescriptive, focusing on the relationship between buildings and the street, pedestrians and vehicles and public and private spaces. As defined by the Form-Based Codes Institute: FBCs foster predictable built results and a high-quality public realm by using physical form (rather than separation of uses) as their organizing principle. These codes are adopted as regulations, not mere guidelines. FBCs typically include drawings and diagrams along with written regulations. The key component of a FBC is the “Regulating Plan”, which addresses the intensity of development and character of a place, as well as broad land use categories. Other components of FBCs usually include standards related to: building type, building massing and intensity, parking design and placement, open space and streetscape, frontage types and allowed uses. FBCs began appearing in the 1980s as a tool to create walkable, mixed-used communities and address the weaknesses of conventional codes in creating such communities. FBCs have been implemented in a greater number of cities in various forms throughout the U.S. and other countries since that time. These codes range from full code overhauls, to optional form-based districts, to codes that include both conventional zoning and form-based districts. With a form-base code, the City of St. Louis Park can refine and expand upon the plans, studies and design-guidelines that have previously been completed for the station areas. The code can then implement the vision created for each of the St. Louis Park LRT Station Areas through a public engagement process as defined in the consultant contract. The City released a Request for Proposals (RFP) in September of this year and received five submittals. The proposals all included nationally renowned firms in the fields of urban design, placemaking and form-based coding. Of the five teams, four were invited to interview in October. The City created a review team that consisted of four St. Louis Park staff, the Hennepin County TOD Manager, and a Principal Planner from the City of St. Paul. This team selected CodaMetrics as the firm to develop the form-based code. Staff believes that a form-based code may be the strongest tool for guiding redevelopment in the three St. Louis Park LRT Station Areas. The FBC can provide an efficient process and predictable outcomes to create walkable, mixed-use neighborhoods and places that are responsive to community desires and capitalize on the opportunities provided by the SWLRT line. 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 Study Session Meeting of November 25, 2013 (Item No. 4) Title: Update on SWLRT Station Area Form-Based Code Grant Contract Page 3 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 Study Session Meeting of November 25, 2013 (Item No. 4) Title: Update on SWLRT Station Area Form-Based Code Grant Contract Page 4 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 Study Session Meeting of November 25, 2013 (Item No. 4) Title: Update on SWLRT Station Area Form-Based Code Grant Contract Page 5 OVERVIEW 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 Study Session Meeting of November 25, 2013 (Item No. 4) Title: Update on SWLRT Station Area Form-Based Code Grant Contract Page 6 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 Study Session Meeting of November 25, 2013 (Item No. 4) Title: Update on SWLRT Station Area Form-Based Code Grant Contract Page 7 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 Study Session Meeting of November 25, 2013 (Item No. 4) Title: Update on SWLRT Station Area Form-Based Code Grant Contract Page 8 Meeting: Study Session Meeting Date: November 25, 2013 Written Report: 5 EXECUTIVE SUMMARY TITLE: October 2013 Monthly Financial Report RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. SUMMARY: The Monthly Financial Report provides a summary of General Fund revenues and departmental expenditures and a comparison of budget to actual throughout the year. FINANCIAL OR BUDGET CONSIDERATION: At the end of October, General Fund expenditures total 81% of the adopted annual budget, which is approximately 2% under where expenditures would normally be at the end of October. Please see the attached analysis for more details. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Summary of Revenues & Expenditures Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian A. Swanson, Controller Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study Session Meeting of November 25, 2013 (Item No. 5) Page 2 Title: October 2013 Monthly Financial Report DISCUSSION BACKGROUND: This report is designed to provide summary information of the overall level of revenues and departmental expenditures in the General Fund and a comparison of budget to actual throughout the year. Please note that beginning in July 2013 the format of this report has changed to reflect the reorganization of the former Park & Recreation and Public Works Departments. According to Generally Accepted Accounting Principles (GAAP), the reorganization made it necessary to consolidate the Park & Recreation Fund into the General Fund. PRESENT CONSIDERATIONS: Actual expenditures should generally run about 83% of the annual budget in October. Currently, the General Fund has expenditures totaling 81% of the adopted budget. Revenues tend to be harder to measure in this same way due to the timing of when they are received, examples of which include property taxes and State aid payments, such as Police & Fire Aid, DOT/Highway User Tax, and PERA Aid. A few brief comments on variances are explained below. Revenues:  License and permit revenues have been running ahead of budget all year, and as noted in the September report, they have begun to exceed the total annual budget. Through the end of October, total license and permit revenues are approximately 12% or $300,000 greater than the total annual budget. Building permit activity for alterations and remodeling projects to existing commercial buildings has been higher than expected this year. Larger commercial permits processed in October included TCF Bank and Park Nicollet/Methodist Fifth Floor Women’s Clinic. It is difficult to anticipate how much permit revenues will exceed budget by the end of the year, as it could be affected quite significantly by the timing of permits for planned new developments, such as the Wooddale Flats project, and future work to Knollwood Mall. Expenditures:  A comment was included in the September report explaining that Accounting was exceeding budget because of a shift in how audit costs and liability/property insurance premium expenses are being allocated due to the reorganization and combining of the former Park & Recreation Fund into the General Fund. The necessary revisions are reflected in the October report. A 2013 Revised Budget will be brought to Council for approval in December due to the changes that were necessary because of the reorganization for the General Fund.  Human Resources is exceeding budget at 87.9% due to recruitment expenses, which are approximately $25,000 higher than budgeted.  The Organized Recreation Division is at 87.5% of budget through October. This is in part because the full annual Community Education contribution in the amount of $187,400 was paid to the School District earlier in the year. The timing of this large expenditure is consistent with prior years and creates a temporary variance. Also, some costs in this Division are seasonal, with larger expenses occurring for recreational activities over the summer and early fall months. When comparing 2013 to prior year through October, the results are very consistent. Study Session Meeting of November 25, 2013 (Item No. 5) Page 3 Title: October 2013 Monthly Financial Report  Expenditures in the Rec Center Division are exceeding budget at 91.2%. Prior history indicates that it is typical for there to be a seasonal variance at this point in the year since a large portion of the budgets for temporary staff and supplies are spent over the summer months for the pool and concessions. However, there are several other areas exceeding the annual budgeted amounts. Building and equipment maintenance expenses have gone over budget due to repairs that included the boiler, air conditioning, water slide, pool vacuum, and concession equipment. Temporary salary expenditures are exceeding budget because of an added life guard and additional maintenance staffing needed to help with projects and cover vacations. Operating expenditures were also incurred for several non-routine items, including studies and assessments and to replace chairs in the gallery room and around the pool. Staff has reviewed expenses in this division and reclassified where appropriate to capital or contingency. However, it is still likely that there will be an end of year overage in this division of 3% to 5%, which would be approximately $43,000-$72,000.  The Vehicle Maintenance Division is slightly over budget at 85.3%. This is caused by budget overages in a few areas, including fuel, tires, and equipment maintenance/repair service. NEXT STEPS: None are required at this time. Summary of Revenues & Expenditures - General Fund As of October 31, 2013 2013 2013 2011 2011 2012 2012 2013 2013 Balance YTD Budget Budget Actual Budget Actual Budget Oct YTD Remaining to Actual % General Fund Revenues: General Property Taxes 19,426,633$ 19,372,637$ 20,169,798$ 20,209,604$ 20,657,724$ 10,804,834$ 9,852,890$ 52.30% Licenses and Permits 2,352,510 2,797,698 2,375,399 3,241,812 2,481,603 2,781,426 (299,823) 112.08% Fines & Forfeits 328,200 281,047 328,150 341,356 335,150 219,704 115,446 65.55% Intergovernmental 1,213,839 1,452,030 1,232,579 1,365,023 1,300,191 1,243,710 56,481 95.66% Charges for Services 2,247,893 2,159,300 2,341,104 2,169,631 1,837,976 1,516,158 321,818 82.49% Miscellaneous Revenue 1,037,550 1,164,452 1,079,550 1,092,234 1,092,381 763,376 329,005 69.88% Transfers In 2,589,876 2,553,665 2,023,003 2,066,136 1,816,563 1,491,261 325,302 82.09% Investment Earnings 200,000 203,282 125,000 136,415 150,000 150,000 0.00% Other Income 19,750 101,588 45,600 276,273 36,650 10,556 26,094 28.80% Total General Fund Revenues 29,416,251$ 30,085,699$ 29,720,183$ 30,898,483$ 29,708,238$ 18,831,025$ 10,877,213$ 63.39% General Fund Expenditures: General Government: Administration 889,798$ 825,168$ 1,012,554$ 977,392$ 877,099$ 729,812$ 147,287$ 83.21% Accounting 612,964 624,573 641,691 639,999 827,320 676,372 150,948 81.75% Assessing 500,141 506,426 517,840 518,271 543,855 453,342 90,513 83.36% Human Resources 652,770 629,734 667,612 645,357 678,988 596,937 82,051 87.92% Community Development 1,094,186 1,082,461 1,076,376 1,052,186 1,094,517 902,739 191,778 82.48% Facilities Maintenance 1,114,551 955,880 1,083,128 972,481 1,074,920 796,626 278,294 74.11% Information Resources 1,394,226 1,421,858 1,507,579 1,363,266 1,770,877 1,285,285 485,592 72.58% Communications & Marketing 294,470 256,558 265,426 244,392 201,322 151,025 50,297 75.02% Community Outreach 88,515 84,300 8,185 5,341 8,185 4,496 3,689 54.93% Engineering 846,032 816,280 927,337 939,425 303,258 251,910 51,348 83.07% Total General Government 7,487,653$ 7,203,238$ 7,707,728$ 7,358,111$ 7,380,341$ 5,848,544$ 1,531,797$ 79.24% Public Safety: Police 7,208,512$ 6,943,375$ 7,273,723$ 7,124,784$ 7,443,637$ 6,029,988$ 1,413,649$ 81.01% Fire Protection 3,164,344 3,061,962 3,346,931 3,291,655 3,330,263 2,634,139 696,124 79.10% Inspectional Services 1,863,296 1,818,212 1,889,340 1,869,616 1,928,446 1,605,566 322,880 83.26% Total Public Safety 12,236,152$ 11,823,549$ 12,509,994$ 12,286,055$ 12,702,346$ 10,269,693$ 2,432,653$ 80.85% Operations & Recreation: Public Works Administration 829,698$ 803,259$ 389,783$ 378,852$ 393,054$ 248,526$ 144,528$ 63.23% Public Works Operations 2,550,285 2,461,099 2,604,870 2,521,463 2,698,870 2,203,504 495,366 81.65% Organized Recreation 1,239,230 1,266,774 1,305,747 1,352,273 1,280,117 1,119,788 160,329 87.48% Recreation Center 1,442,447 1,424,076 1,466,246 1,516,121 1,449,930 1,322,268 127,662 91.20% Park Maintenance 1,435,374 1,462,866 1,461,645 1,444,448 1,431,825 1,198,116 233,709 83.68% Westwood 502,366 488,579 515,456 506,404 520,554 423,407 97,147 81.34% Environment 371,324 396,664 390,009 382,378 430,876 330,926 99,950 76.80% Vehicle Maintenance 1,141,722 1,300,708 1,188,705 1,326,153 1,240,325 1,058,272 182,053 85.32% Total Operations & Recreation 9,512,446$ 9,604,023$ 9,322,461$ 9,428,091$ 9,445,551$ 7,904,807$ 1,540,744$ 83.69% Non-Departmental: General 81,287$ -$ 65,292$ -$ -$ 0.00% Transfers Out 900,000 - 1,160,000 - - 0.00% Tax Court Petitions 180,000 - 180,000 - 180,000 45,067 134,933 25.04% Total Non-Departmental 180,000$ 981,287$ 180,000$ 1,225,292$ 180,000$ 45,067$ 134,933$ 25.04% Total General Fund Expenditures 29,416,251$ 29,612,097$ 29,720,183$ 30,297,549$ 29,708,238$ 24,068,110$ 5,640,128$ 81.01% Study Session Meeting of November 25, 2013 (Item No. 5) Title: October 2013 Monthly Financial Report Page 4 Meeting: Special City Council Meeting Date: November 25, 2013 Action Agenda Item: 2a EXECUTIVE SUMMARY TITLE: Excel Pawn Currency Exchange License Renewal RECOMMENDED ACTION: Motion to consider 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. POLICY CONSIDERATION: Based on further investigation findings, does the City Council wish to approve the State issuance of a Currency Exchange License Renewal to Excel Pawn? SUMMARY: At the November 18 Council Meeting, a public hearing was held regarding a currency exchange license renewal for Excel Pawn & Jewelry. Based on the public information provided during the hearing, Council approved to table consideration of the license renewal for further law enforcement investigation of the allegations and how they might relate to the currency exchange renewal application. A written response to the allegations was received from the applicant and is attached to this report. The Minnesota Department of Commerce handles currency exchange licensing and the annual renewal of these businesses including conducting the complete criminal background investigation on owners and officers. City staff, the City Attorney and the Police Department conducted an additional review of the State investigation and further review of the allegations presented by Mr. Scott Lansing (Clerk’s file No. 46) at the November 18 Public Hearing. Based upon this review, the following information is provided to assist the Council in its decision to approve or disapprove the currency exchange license renewal for Excel Pawn & Jewelry operating at 8008 Minnetonka Boulevard: • Mr. Doolittle has a 1989 conviction for possession of cocaine with intent to distribute and served time in prison from 1989 – 1994. • Mr. Doolittle does not have any other criminal convictions. He was arrested in 2000 for felony possession of a controlled substance but was never charged with a crime. • There is no evidence that Mr. Doolittle engaged in any illegal conduct in connection with the 2005 vehicle forfeiture incident referenced by Mr. Lansing. • Excel Pawn Inc. has had a pawn shop license in St. Louis Park since 1998. It has been at its current location in the Texa-Tonka Shopping Center since 2006. • Excel has had a currency exchange license since 2000. • Mr. Doolittle has been listed as part owner on city pawn broker license application since 2008. The city does not retain applications prior to that date in accordance with records retention rules. • There are no identified inaccuracies in the city pawn broker license applications. Allegations by Mr. Lansing of inaccuracies or misrepresentation in license applications in other cities presumably will be addressed by those jurisdictions. • Mr. Doolittle disclosed the cocaine conviction when required in the city pawn broker application. • Excel Pawn overall has run a good operation in St. Louis Park. The owners and manager have been cooperative and responsive to any police concerns. There are some minor licensing issues relating to the pawn operation which will be addressed as part of the pawn broker license renewal. Special City Council Meeting of November 25, 2013 (Item No. 2a) Page 2 Title: Excel Pawn Currency Exchange License Renewal • Mr. Doolittle’s 1989 cocaine conviction is not a basis for denying the application. Minn. Stat. 364.01 et. Seq. prohibits the city from denying a license based upon a criminal conviction unless the crime directly relates to the license being sought. There is no such direct relationship between the 1989 cocaine conviction and the currency exchange license. Additionally, the state statute provides that even if the crime relates directly to the licensed activity, the person is not disqualified if he or she shows competent evidence of rehabilitation and present fitness to perform the licensed activity. Here, there is competent evidence of rehabilitation and the good track record of the business in St. Louis Park demonstrates a fitness to continue to hold the currency license. FINANCIAL OR BUDGET CONSIDERATION: Not applicable VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Mr. Lansing Opposition Letter of November 18, 2013 Lt. Harcey Memo of November 20, 2013 Excel Pawn Response Letter of November 20, 2013 Wells Fargo Compliance Letter dated July 18, 2013 Mr. Lansing Summary Letter of November 21, 2013 Prepared by: Nancy Stroth, City Clerk Reviewed by: Tom Scott, City Attorney Approved by: Tom Harmening, City Manager Special City Council Meeting of November 25, 2013 (Item No. 2a) Page 3 Title: Excel Pawn Currency Exchange License Renewal DISCUSSION BACKGROUND: Excel Pawn & Jewelry business has operated in St. Louis Park since 1998. The business license is handled administratively each year through the City Inspections Department. Excel has submitted a 2014 Pawn License application, currently under review. A background check by the Police Department is completed annually as part of the application review to verify compliance with specific ordinance requirements. The business has additional locations in Shakopee, Champlin, Independence, and Maplewood. Currency exchange licenses are handled by the State, but require cities to consider the issue and solicit testimony at a public hearing. Background Investigation Rules Data practices law limits the amount of data released in a criminal history check done on license applicants. The law allows the release of criminal history data that includes only Minnesota criminal case convictions. As standard practice the Police Department investigation includes a criminal history check, driver’s license checks and warrant checks. PRESENT CONSIDERATIONS: Pursuant to Minnesota Statute 53A.04, if the City has not approved or disapproved the license renewal within 60 days of receipt of the application, concurrence is presumed. The 60 day deadline is December 1, 2013. The statute further states the governing body shall have the sole responsibility for its decision and the State shall have no responsibility for that decision. On Thursday, November 21, 2013, Mr. Lansing submitted in person a large amount of documents to the Clerk’s office. These documents were reviewed by the City Attorney. Attached to this report is the summary letter from Mr. Lansing regarding all the documents submitted which are on file in the City Clerk’s office. NEXT STEPS: The Clerk’s office will reply to the Department of Commerce by December 1, 2013 with the Council’s decision regarding the State issuance of the Currency Exchange License renewal for Excel Pawn and Jewelry. Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 4 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 5 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 6 Police Department Memorandum To: Nancy Stroth From: Lt. Mike Harcey Date: 11-20-13 Subject: Excel Pawn Currency Exchange License In response to public comments made by Scott Lansing during the 11-18-13 Council meeting, I was asked by Tom Scott to verify three points that Mr. Lansing outlined in a document presented to Council. 1- Mr. Lansing describes a Federal arrest for a drug violation in which Patrick Doolittle served a Federal prison term in the 1990's. I completed a criminal history check that did not reveal any arrest convictions in Minnesota. I searched all commonly used investigatory data bases for public records regarding a possible Federal arrest of Mr. Doolittle and found none. Due to the fact the possible arrest would have occurred more than 15 years ago it is likely not available on public data bases. 2- Mr. Lansing describes an arrest of Mr. Doolittle at the Maplewood Excel Pawn Store. I contacted the Maplewood Police Department records department and requested any public information on Mr. Doolittle and was told they retained no records on Mr. Doolittle. I contacted the Ramsey County Sheriff’s Department and found that Mr. Doolittle was arrested on 11-21-00 for felony possession of a controlled substance but was never charged with a crime. 3- Mr. Lansing cited potential violations of MN statute 352.J.095 which indicates that a pawnbroker must have a used motor vehicle dealer's license to hold title to a motor vehicle as part of a pawn transaction. I verified that Excel Pawn has had motorcycles in pawn by reviewing the Automated Pawn System. I verified that Excel Pawn, Mark Pearson, and Patrick Doolittle do not have a used motor vehicle dealer's license by searching the Minnesota Driver and Vehicle Services Database. I also meet with Adam Dietrich the Manager of Excel Pawn. He verified that they have pawned motorcycles in the past and store them in the building when in pawn. He stated that he was not aware of the business or owners having a used motor vehicle dealer's license or the necessity to have one to conduct pawn transactions. I was also asked to contact Scott Lansing to attempt to illicit information that may assist in verifying the information that he presented to Council. I left voice mail messages for Mr. Lansing on 11-19- 12 at 1530 hours at 952-451-8156 and 612-327-7352. On 11-20-13 at 1630 hours I received a return call from Mr. Lansing. He stated that he had a lot of supporting documents that he would like to provide me for review. He stated he could not meet with me until the morning of 11-21-13. I informed him I would be available to meet with him that morning and he agreed to come in with the documents. Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 7 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 8 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 9 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 10 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 11 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 12 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 13 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 14 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 15 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 16 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 17 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 18 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 19 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 20 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 21 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 22 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 23 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 24 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 25 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 26 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 27 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 28 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 29 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 30 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 31 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 32 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 33 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 34 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 35 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 36 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 37 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 38 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 39 Special City Council Meeting of November 25, 2013 (Item No. 2a) Title: Excel Pawn Currency Exchange License Renewal Page 40